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  57
Stock Options
We used the following assumptions to estimate the fair value for stock options at grant date:
Fiscal year 2014 2013 2012
Risk-free interest rate: Represents the yield on U.S. Treasury zero-coupon securities that 
mature over the 10-year life of the stock options. 0.2% – 2.6% 0.2% – 1.8% 0.3% – 2.0%
Weighted-average volatility: Based on a combination of the historical volatility of our common 
stock and the implied volatility of exchange-traded options for our common stock. 30.1% 31.8% 36.5%
Weighted-average expected dividend yield: Our forecasted dividend yield for the next 10 
years. 2.2% 2.0% 2.1%
Expected life in years: Represents the estimated period of time until option exercise. The 
expected term of options granted was derived from the output of the Binomial Lattice option 
valuation model and was based on our historical exercise behavior, taking into consideration 
the contractual term of the option and our employees’ expected exercise and post-vesting 
employment termination behavior.
6.8 6.7 6.1
The weighted-average fair value per option at the grant date was $16, $14 and $15 in 2014, 2013 and 2012. In 2014, 2013 and 2012, stock 
option awards to employees were approved by the Compensation Committee of our Board of Directors and their exercise price was set at 
$61, $54 and $53, the closing price of our common stock on March 3, 2014, March 4, 2013 and February 22, 2012 (the dates of grant). The 
awards are determined based upon a percentage of the recipients’ base salaries’ and the fair value of the stock options. Options vest over 
four years, and expire 10 years after the date of grant. In 2014, we awarded stock options to 1,799 employees, compared with 1,625 and 
1,477 employees in 2013 and 2012.
A summary of stock option activity (excluding Trunk Club) for 2014 is presented below:
Fiscal year 2014
 Shares
Weighted-
average
exercise price
Weighted-average
remaining 
contractual
life (years)
Aggregate 
intrinsic 
value 
Outstanding, beginning of year 13.8 $43   
Granted 1.9 61
Exercised (3.1) 40
Forfeited or cancelled (0.3) 55
Outstanding, end of year 12.3 $47 6 $362
Options exercisable at end of year 6.2 $39 5 $232
Options vested or expected to vest at end of year 11.9 $46 6 $353
The aggregate intrinsic value of options exercised during 2014, 2013 and 2012 was $89, $89 and $90. The total fair value of stock options 
vested during 2014, 2013 and 2012 was $39, $34 and $32. As of January 31, 2015, the total unrecognized stock-based compensation 
expense related to nonvested stock options was $49, which is expected to be recognized over a weighted-average period of 27 months.
Restricted Stock Units
Beginning in the quarter ended May 3, 2014, we grant our employees a combination of restricted stock units and stock options. In 2014, 
restricted stock units granted to employees were approved by the Compensation Committee of our Board of Directors, and are determined 
based upon a percentage of the recipients’ base salaries’ and the fair value of the restricted stock units. Restricted stock units typically vest 
over four years.