<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 1994
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from_______ to _________
Commission File Number 0-12994
Nordstrom Credit, Inc.
______________________________________________________
(Exact name of Registrant as specified in its charter)
Colorado 91-1181301
______________________________ ________________
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
13531 East Caley, Englewood, Colorado 80111
____________________________________________________
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: 303-397-4700
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
YES X NO
____ ____
On November 18, 1994 Registrant had 10,000 shares of Common stock
($.50 par value) outstanding; all such shares are owned by Registrant's
parent, Nordstrom, Inc.
The Registrant meets the conditions set forth in General
Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this
form with the reduced disclosure format.
page 1 of 7
<PAGE>
NORDSTROM CREDIT, INC.
----------------------
INDEX
-----
Page
Number
------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Statements of Earnings
Three and nine months ended October 31, 1994
and 1993 3
Balance Sheets
October 31, 1994 and 1993
and January 31, 1994 4
Statements of Cash Flows
Nine months ended October 31, 1994
and 1993 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 7
page 2 of 7
<PAGE>
NORDSTROM CREDIT, INC.
STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended October 31, Ended October 31,
------------------ ------------------
1994 1993 1994 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Service charge income $23,758 $22,952 $68,247 $68,549
Expenses:
Interest, net 8,011 7,281 21,933 21,996
Service fees paid to
Nordstrom National
Credit Bank 6,124 6,085 19,184 20,673
General and
administrative 632 399 1,528 1,217
-------- -------- -------- --------
Total expenses 14,767 13,765 42,645 43,886
-------- -------- -------- --------
Earnings before
income taxes 8,991 9,187 25,602 24,663
Income taxes 3,300 3,310 9,300 8,880
-------- -------- -------- --------
Net earnings $ 5,691 $ 5,877 $16,302 $15,783
======== ======== ======== ========
Ratio of earnings
available for fixed
charges to fixed charges 2.12 2.25 2.16 2.12
======== ======== ======== ========
</TABLE>
These statements should be read in conjunction with the Notes to
Financial Statements contained herein and in the Nordstrom Credit, Inc.
Annual Report on Form 10-K for the year ended January 31, 1994.
page 3 of 7
<PAGE>
NORDSTROM CREDIT, INC.
BALANCE SHEETS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
October 31, January 31, October 31,
1994 1994 1993
----------- ----------- -----------
ASSETS
- ------
<S> <C> <C> <C>
Cash and cash equivalents $ 6,761 $ 1,694 $ 4,678
Customer accounts receivable
net of holdback allowance
of $24,358, $23,145 and
$24,380 562,719 564,495 516,735
Other accounts receivable - 3,977 -
Property and equipment, net 5,760 5,987 6,078
Other assets 1,469 1,677 1,746
---------- ---------- ----------
$576,709 $577,830 $529,237
========== ========== ==========
LIABILITIES AND INVESTMENT OF NORDSTROM, INC.
- ---------------------------------------------
Notes payable to
Nordstrom, Inc. $ 15,000 $112,500 $ 13,800
Commercial paper 121,393 15,337 54,177
Notes payable to banks 50,000 25,000 25,000
Accrued interest, taxes
and other 12,186 9,665 10,821
Long-term debt 212,100 265,600 280,600
---------- ---------- ----------
Total liabilities 410,679 428,102 384,398
Investment of
Nordstrom, Inc. 166,030 149,728 144,839
---------- ---------- ----------
$576,709 $577,830 $529,237
========== ========== ==========
</TABLE>
These statements should be read in conjunction with the Notes to
Financial Statements contained herein and in the Nordstrom Credit, Inc.
Annual Report on Form 10-K for the year ended January 31, 1994.
page 4 of 7
<PAGE>
NORDSTROM CREDIT, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Nine Months
Ended October 31,
------------------
1994 1993
-------- --------
OPERATING ACTIVITIES:
<S> <C> <C>
Net earnings $ 16,302 $ 15,783
Adjustments to reconcile net earnings
to net cash provided by
operating activities:
Depreciation and amortization 459 479
Change in:
Customer accounts receivable 1,776 66,476
Other accounts receivable 3,977 3,708
Accrued interest, taxes and other 2,521 852
-------- --------
Net cash provided by operating activities 25,035 87,298
-------- --------
INVESTING ACTIVITIES:
Additions to property and equipment, net (24) (166)
-------- --------
FINANCING ACTIVITIES:
Increase in commercial paper 106,056 40,858
Increase in notes payable to banks 25,000 -
Decrease in notes payable to
Nordstrom, Inc. (97,500) (98,700)
Principal payments on long-term debt (53,500) (25,000)
-------- --------
Net cash used in financing activities (19,944) (82,842)
-------- --------
Net increase in cash and cash equivalents 5,067 4,290
Cash and cash equivalents
at beginning of period 1,694 388
-------- --------
Cash and cash equivalents at end of period $ 6,761 $ 4,678
======== ========
</TABLE>
These statements should be read in conjunction with the Notes to
Financial Statements contained herein and in the Nordstrom Credit, Inc.
Annual Report on Form 10-K for the year ended January 31, 1994.
page 5 of 7
<PAGE>
NORDSTROM CREDIT, INC.
NOTES TO FINANCIAL STATEMENTS
(unaudited)
Note 1:
The balance sheets of Nordstrom Credit, Inc. as of October 31, 1994 and
1993, and the related statements of earnings and cash flows for the
periods then ended, have been prepared from the accounts without audit.
The financial information is applicable to interim periods and is not
necessarily indicative of the results to be expected for the year ending
January 31, 1995.
It is not considered necessary to include detailed footnote information
as of October 31, 1994 and 1993. The financial statements should be
read in conjunction with the Notes to Financial Statements contained in
the Nordstrom Credit, Inc. Annual Report on Form 10-K for the year ended
January 31, 1994.
In the opinion of management, the financial information includes all
adjustments (consisting only of normal, recurring adjustments) necessary
to present fairly the financial position of Nordstrom Credit, Inc. as of
October 31, 1994 and 1993, and the results of its operations and cash
flows for the periods then ended, in accordance with generally accepted
accounting principles applied on a consistent basis.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Net interest expense for the quarter increased when compared to the same
period in the prior year due primarily to a loss of $625,000 ($400,000
net of taxes) on the purchase by the Company of $12,500,000 of its own
9.375% Sinking Fund Debentures due 2016.
Service fees paid to Nordstrom National Credit Bank (the "Bank") for the
nine month period decreased when compared to the same period in the
prior year due primarily to a decrease in the servicing fee rate,
effective on November 1, 1993. The decrease was partially offset by an
increase in charge sales generated by the Bank's new Visa credit card
which resulted in an increase in service fees paid in the third quarter of
1994, as compared to 1993.
During the quarter, the Company filed a shelf registration statement
under Form S-3 for $250 million in debt. Subsequent to quarter-end, the
Company issued $50 million in medium-term notes under the shelf
registration.
page 6 of 7
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
--------
(27.1) Financial Data Schedule is filed herewith electronically.
(b) Reports on Form 8-K
-------------------
No reports on Form 8-K were filed during the quarter for which
this report is filed.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NORDSTROM CREDIT, INC.
(Registrant)
/s/ John A. Goesling
__________________________________________
John A. Goesling, Executive Vice President
and Treasurer
(Principal Financial and Accounting Officer)
Date: December 2, 1994
___________________
page 7 of 7
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-31-1995
<PERIOD-END> OCT-31-1994
<CASH> 6761
<SECURITIES> 0
<RECEIVABLES> 562719
<ALLOWANCES> 24358
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 5760
<DEPRECIATION> 0
<TOTAL-ASSETS> 576709
<CURRENT-LIABILITIES> 0
<BONDS> 212100
<COMMON> 0
0
0
<OTHER-SE> 166030
<TOTAL-LIABILITY-AND-EQUITY> 576709
<SALES> 0
<TOTAL-REVENUES> 68247
<CGS> 0
<TOTAL-COSTS> 42645
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 21933
<INCOME-PRETAX> 25602
<INCOME-TAX> 9300
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 16302
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
