Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and per unit amounts
Nordstrom, Inc. and subsidiaries  61
As of January 31, 2015, our state and foreign net operating loss carryforwards for income tax purposes were approximately $3 and $11, 
respectively. As of February 1, 2014, our federal, state and foreign net operating loss carryforwards for income tax purposes were 
approximately $4, $24 and $0, respectively. The state net operating loss carryforwards are subject to certain statutory limitations of the 
Internal Revenue Code and applicable state law. If not utilized, a portion of our state and foreign net operating loss carryforwards will begin to 
expire in 2031 and 2033, respectively.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Fiscal year 2014 2013 2012
Unrecognized tax benefit at beginning of year $14 $15 $21
Gross increase to tax positions in prior periods 9 3 1
Gross decrease to tax positions in prior periods (2) (1) (7)
Gross increase to tax positions in current period 2 1 1
Lapses in statute (3) — —
Settlements (5) (4) (1)
Unrecognized tax benefit at end of year $15 $14 $15
At the end of 2014, 2013 and 2012, $13, $7 and $7 of the ending gross unrecognized tax benefit related to items which, if recognized, would 
affect the effective tax rate.
Our income tax expense included a decrease to expense of $1 in both 2014 and 2012, and an increase to expense of $1 in 2013, for tax-
related interest and penalties. At the end of 2014, 2013 and 2012, our liability for interest and penalties was $2, $7 and $7.
We file income tax returns in the U.S. and a limited number of foreign jurisdictions. With few exceptions, we are no longer subject to federal, 
state and local, or non-U.S. income tax examinations for years before 2010. Unrecognized tax benefits related to federal, state and local tax 
positions may decrease by $4 by January 30, 2016, due to the completion of examinations and the expiration of various statutes of 
limitations.
NOTE 15:  EARNINGS PER SHARE
Earnings per basic share is computed using the weighted-average number of common shares outstanding during the year. Earnings per 
diluted share uses the weighted-average number of common shares outstanding during the year plus dilutive common stock equivalents, 
primarily stock options. Dilutive common stock reflects the issuance of stock for all outstanding options that could be exercised, and would 
also reduce the amount of earnings that each share is entitled to. Anti-dilutive shares (including stock options and other shares) are excluded 
from the calculation of diluted shares and earnings per diluted share because their impact could increase earnings per diluted share.
The computation of earnings per share is as follows:
Fiscal year 2014 2013 2012
Net earnings $720 $734 $735
Basic shares 190.0 194.5 203.0
Dilutive effect of stock options and other 3.6 3.2 3.7
Diluted shares 193.6 197.7 206.7
Earnings per basic share $3.79 $3.77 $3.62
Earnings per diluted share $3.72 $3.71 $3.56
Anti-dilutive stock options and other 2.1 4.1 4.2