text: **Nordstrom, Inc.**
  **Notes to Consolidated Financial Statements**
  Dollar and share amounts in millions except per share, per option and per unit amounts 
  
  In the fourth quarter of 2013, we issued $665 of 5.00% senior unsecured notes due January 2044 (“2044 Notes”). We used $400 of the 
  proceeds to retire all 6.75% senior unsecured notes due June 2014. We exchanged $201 of the 7.00% senior unsecured notes due January 
  2038 (“2038 Notes”) for $265 of the 2044 Notes. The $64 in excess of the outstanding principal of the 2038 Notes relates to the lower interest 
  rate and longer maturity of the new 2044 Notes, and we recorded it as part of the discount to be amortized over the term of the 2044 Notes. 
  As of January 31, 2015, we had $598 of outstanding 2044 Notes, net of a $67 discount. The 2044 Notes exchanged for the 2038 Notes and 
  the related discounts represented a non-cash activity of $201 that had no impact to our 2013 Consolidated Statements of Cash Flows. 