Below are Nordstrom's financials for the 2016, 2017, and 2018.Use these to complete Chart 1.Then use Chart 2 to analyze your results.
Consolidated Balance Sheets - USD ($) $ in Millions Assets 2018 2017 2016 Cash and cash equivalents $ 1,181 $ 1,007 5 595 Accounts receivable, net 145 199 196 Merchandise inventories 2,027 1,896 1.945 Prepaid expenses and other 150 140 278 Total current assets 3.503 3.242 3.014 Land, property and equipment, net 3.939 3.897 3.735 Goodwill 238 238 435 Other assets 435 481 514 Total assets 8,115 7,858 7.698 Liabilities and Shareholders' Equity Accounts payable 1,409 1.340 1.324 Accrued salaries, wages and related benefits 578 455 416 Other current liabilities 1.246 1.223 1,161 Current portion of long-term debt 56 11 10 Total current liabilities 3.289 3.029 2,911 Long-term debt, net 2,681 2,763 2,795 Deferred property incentives, net 495 521 540 Other liabilities 673 675 581 Commitments and contingencies (Note 10) Shareholders' equity: Common stock, no par value: 1,000 shares authorized; 167.0 and 170.0 2.816 2.707 2.539 shares issued and outstanding Accumulated deficit (1,810) (1,794) (1,610) Accumulated other comprehensive loss (29) (43) (58 Total shareholders' equity 977 870 871 Total liabilities and shareholders' equity $ 8,115 57,858 57,698 Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions 2018 2017 2016 Net sales $15,137 $14,498 $14,095 Credit card revenues, net 341 259 342Total revenues 15,478 14,757 Cost of sales and related buying and occupancy costs 7 14,437 Selling, general and administrative expenses (9,890) (9,440) (9,168) Goodwill impairment (4,662) (4,315) (4,168) Earnings before interest and income taxes (197) 926 Interest expense, net 805 1,101 Earnings before income taxes (136) (121) (125) 790 684 976 Income tax expense Net carnings (353) (330) (376) $ 437 $ 354 $ 600 Consolidated Statements Of Cash Flows - USD ($) shares in Millions, $ in Millions Operating Activities Net carnings Depreciation and amortization expenses $ 437 5 354 $ 600 666 Goodwill impairment 645 576 197 Amortization of deferred property incentives and other, net Deferred income taxes, net (82) (76) (64) 11 Stock-based compensation expense (15) 142 Bad debt expense 77 91 70 0 0 26 Accounts receivable 1 Proceeds from sale of credit card receivables originated at Nordstrom (3) (56) 30 Merchandise inventories 1,297 31 Prepaid expenses and other assets (62) (203) Accounts payable (20) 100 77 (126) 16 Accrued salaries, wages and related benefits (2) Other current liabilities 121 38 2 48 181 50 Deferred property incentives 64 Other liabilities 65 156 24 Net cash provided by operating activities 34 Investing Activities 1,400 1,658 2,470 Capital expenditures Change in credit card receivables originated at third parties (73]) (846) (1,082) Proceeds from sale of credit card receivables originated at third parties 34 16 Other, net 0 890 31 55 14 Net cash used in investing activities Financing Activities (684) (79]) (144) Proceeds from long-term borrowings, net of discounts 635 Principal payments on long-term borrowings 16 Defeasance of long-term debt (661) (10) (Decrease) increase in cash book overdrafts 0 (339) Cash dividends paid (55) 4 23 (256) Payments for repurchase of common stock (247) (1,185) Proceeds from issuances under stock compensation plans (21 1) (277) (1,192) 39 83 94 Tax withholding on share-based awards (7) Other, net (5) (4) Net cash used in financing activities (35) 6 37 Net increase (decrease) in cash and cash equivalents (542) (455) (2,558) Cash and cash equivalents at beginning of year 174 412 (232) 1,007 595 827 Cash and cash equivalents at end of year 1,181 1,007 595CHART 1. Ratio 2018 2017 2016 Current Quick OCH OCF+ICF DEBT D-E DIH DSO+ TATO* NPM* ROA ROE *Use total revenues CHART 2. Ratio Trend/jump drop indicating a problem (include years) | Problem indicated by trend jump drop Current Quick OCF FCF OCF+ICF DEBT D-E DIH DSO TATO NPM ROA ROE
