<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 April 30, 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 May 19, 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 months ended April 30, 1995
and 1994 3
Balance Sheets
April 30, 1995 and 1994
and January 31, 1995 4
Statements of Cash Flows
Three months ended April 30, 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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NORDSTROM CREDIT, INC.
STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months
Ended April 30,
-------------------
1995 1994
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<S> <C> <C>
Service charge income $26,578 $22,726
Expenses:
Interest, net 8,755 6,882
Service fees paid to
Nordstrom National
Credit Bank 6,202 5,262
General and
administrative 942 414
------- -------
Total expenses 15,899 12,558
------- -------
Earnings before
income taxes 10,679 10,168
Income taxes 3,840 3,660
------- -------
Net earnings $ 6,839 $ 6,508
======= =======
Ratio of earnings
available for fixed
charges to fixed charges 2.22 2.47
======= =======
<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.
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page 3 of 7
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NORDSTROM CREDIT, INC.
BALANCE SHEETS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
April 30, January 31, April 30,
1995 1995 1994
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS
- ------
Cash and cash equivalents $ 134 $ 440 $ 5,256
Customer accounts receivable
net of holdback allowance
of $21,352, $22,958 and
$23,494 650,285 656,263 513,935
Property and equipment, net 5,606 5,685 5,900
Other assets 1,544 1,429 1,607
Other accounts receivable - 4,807 -
-------- ---------- ---------
$657,569 $668,624 $526,698
======== ========== =========
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND INVESTMENT OF NORDSTROM, INC.
- --------------------------------------------
<S> <C> <C> <C>
Commercial paper $108,582 $ 37,388 $ 27,146
Notes payable to bank 50,000 50,000 25,000
Notes payable to
Nordstrom, Inc. 22,100 148,000 41,000
Accrued interest, taxes
and other 15,775 10,963 11,716
Long-term debt 284,100 252,100 265,600
-------- ---------- ---------
Total liabilities 480,557 498,451 370,462
Investment of
Nordstrom, Inc. 177,012 170,173 156,236
-------- ---------- ---------
$657,569 $668,624 $526,698
======== ========== =========
<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
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months
Ended April 30,
-----------------
1995 1994
---- ----
<S> <C> <C>
OPERATING ACTIVITIES:
Net earnings $ 6,839 $ 6,508
Adjustments to reconcile net earnings
to net cash provided by
operating activities:
Depreciation and amortization 176 157
Change in:
Customer accounts receivable, net 5,978 50,560
Other accounts receivable 4,807 3,977
Accrued interest, taxes and other 4,812 2,051
-------- -------
Net cash provided by operating activities 22,612 63,253
-------- -------
FINANCING ACTIVITIES:
Decrease in notes payable to
Nordstrom, Inc. (125,900) (71,500)
Increase in commercial paper 71,194 11,809
Proceeds from issuance of long-term
debt, net 41,788 -
Principal payments on long-term debt (10,000) -
-------- -------
Net cash used in financing activities (22,918) (59,691)
-------- -------
Net (decrease) increase in cash and
cash equivalents (306) 3,562
Cash and cash equivalents
at beginning of period 440 1,694
-------- -------
Cash and cash equivalents at end of period $ 134 $ 5,256
======== =======
<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 April 30, 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 April 30, 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
April 30, 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 when compared to the same period in 1994 due to
additional outstanding receivables generated by the Bank's new VISA card
which was introduced in May, 1994.
Interest expense increased when compared to the same period in 1994 due
primarily to higher levels of debt outstanding during the quarter.
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 herein as an Exhibit.
(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: June 2, 1995
___________________
page 7 of 7
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<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> 3-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-END> APR-30-1995
<CASH> 134
<SECURITIES> 0
<RECEIVABLES> 671,637
<ALLOWANCES> 21,352
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 5,606
<DEPRECIATION> 0
<TOTAL-ASSETS> 657,569
<CURRENT-LIABILITIES> 0
<BONDS> 284,100
<COMMON> 0
0
0
<OTHER-SE> 177,012
<TOTAL-LIABILITY-AND-EQUITY> 657,569
<SALES> 0
<TOTAL-REVENUES> 26,578
<CGS> 0
<TOTAL-COSTS> 15,899
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,755
<INCOME-PRETAX> 10,679
<INCOME-TAX> 3,840
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,839
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
