<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, 1995
[ ] 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 24, 1995 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
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NORDSTROM CREDIT, INC.
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INDEX
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Page
Number
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Statements of Earnings
Three and nine months ended October 31, 1995
and 1994 3
Balance Sheets
October 31, 1995 and 1994
and January 31, 1995 4
Statements of Cash Flows
Nine months ended October 31, 1995
and 1994 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
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page 2 of 7
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<TABLE>
<CAPTION>
NORDSTROM CREDIT, INC.
STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)
Three Months Nine Months
Ended October 31, Ended October 31,
------------------ ------------------
1995 1994 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Service charge income $32,977 $23,758 $88,157 $68,247
Expenses:
Interest, net 11,191 8,011 29,842 21,933
Service fees paid to
Nordstrom National
Credit Bank 6,906 6,124 22,212 19,184
General and
administrative 3,048 632 7,923 1,528
-------- -------- -------- --------
Total expenses 21,145 14,767 59,977 42,645
-------- -------- -------- --------
Earnings before
income taxes 11,832 8,991 28,180 25,602
Income taxes 4,310 3,300 10,200 9,300
-------- -------- -------- --------
Net earnings $ 7,522 $ 5,691 $17,980 $16,302
======== ======== ======== ========
Ratio of earnings
available for fixed
charges to fixed charges 2.06 2.12 1.94 2.16
======== ======== ======== ========
<FN>
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, 1995.
</TABLE>
page 3 of 7
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NORDSTROM CREDIT, INC.
BALANCE SHEETS
(dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
October 31, January 31, October 31,
1995 1995 1994
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS
- ------
Cash and cash equivalents $ 2 $ 440 $ 6,761
Customer accounts receivable
net of holdback allowance
of $22,595, $22,958 and
$24,358 802,997 656,263 562,719
Other accounts receivable 947 4,807 -
Property and equipment, net 5,480 5,685 5,760
Other assets 2,243 1,429 1,469
---------- ---------- ----------
$811,669 $668,624 $576,709
========== ========== ==========
LIABILITIES AND INVESTMENT OF NORDSTROM, INC.
- ---------------------------------------------
Commercial paper $183,057 $ 37,388 $121,393
Notes payable to bank 50,000 50,000 50,000
Notes payable to
Nordstrom, Inc. 8,000 148,000 15,000
Accrued interest, taxes
and other 13,358 10,963 12,186
Long-term debt 369,100 252,100 212,100
---------- ---------- ----------
Total liabilities 623,515 498,451 410,679
Investment of
Nordstrom, Inc. 188,154 170,173 166,030
---------- ---------- ----------
$811,669 $668,624 $576,709
========== ========== ==========
<FN>
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, 1995.
</TABLE>
page 4 of 7
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NORDSTROM CREDIT, INC.
STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
Nine Months
Ended October 31,
------------------
1995 1994
-------- --------
<S> <C> <C>
OPERATING ACTIVITIES:
Net earnings $ 17,980 $ 16,302
Adjustments to reconcile net earnings
to net cash (used in) provided by
operating activities:
Depreciation and amortization 563 459
Change in:
Customer accounts receivable (146,733) 1,776
Other accounts receivable 3,860 3,977
Accrued interest, taxes and other 2,395 2,521
-------- --------
Net cash (used in) provided by (121,935) 25,035
operating activities -------- --------
INVESTING ACTIVITIES:
Additions to property and equipment, net (33) (24)
-------- --------
FINANCING ACTIVITIES:
Increase in commercial paper 145,669 106,056
Increase in notes payable to bank - 25,000
Decrease in notes payable to
Nordstrom, Inc. (140,000) (97,500)
Proceeds from issuance of long-term
debt, net 140,861 -
Principal payments on long-term debt (25,000) (53,500)
-------- --------
Net cash provided by (used in)
financing activities 121,530 (19,944)
-------- --------
Net (decrease) increase in cash and
cash equivalents (438) 5,067
Cash and cash equivalents
at beginning of period 440 1,694
-------- --------
Cash and cash equivalents at end of period $ 2 $ 6,761
======== ========
<FN>
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, 1995.
</TABLE>
page 5 of 7
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NORDSTROM CREDIT, INC.
NOTES TO FINANCIAL STATEMENTS
(unaudited)
Note 1:
The balance sheets of Nordstrom Credit, Inc. as of October 31, 1995 and
1994, 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, 1996.
It is not considered necessary to include detailed footnote information
as of October 31, 1995 and 1994. 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, 1995.
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, 1995 and 1994, 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
Service charge income and Service fees paid to Nordstrom National Credit
Bank (the "Bank") increased for the nine month period when compared to the
same period in 1994, primarily due to an increase in receivables generated
by the Bank's VISA card program which commenced in May, 1994.
Interest expense increased for the nine month period when compared to the
same period in 1995, due primarily to higher levels of debt outstanding.
General and Administrative expenses increased for the nine month period when
compared to the same period in 1994, due primarily to an increase in bad
debt expense related to the VISA card receivables.
page 6 of 7
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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 5, 1995
___________________
page 7 of 7
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<TABLE>
<CAPTION>
EXHIBIT INDEX
EXHIBIT METHOD OF FILING
- --------------------------------- ----------------------------
<S> <C> <C>
27.1 Financial Data Schedule Filed herewith electronically.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-END> OCT-31-1995
<CASH> 2
<SECURITIES> 0
<RECEIVABLES> 825592
<ALLOWANCES> 22595
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 5480
<DEPRECIATION> 0
<TOTAL-ASSETS> 811669
<CURRENT-LIABILITIES> 0
<BONDS> 369100
<COMMON> 0
0
0
<OTHER-SE> 188154
<TOTAL-LIABILITY-AND-EQUITY> 811669
<SALES> 0
<TOTAL-REVENUES> 88157
<CGS> 0
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<OTHER-EXPENSES> 59977
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<INTEREST-EXPENSE> 29842
<INCOME-PRETAX> 28180
<INCOME-TAX> 10200
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<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17980
<EPS-PRIMARY> 0
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</TABLE>
