text: **Nordstrom, Inc.**
  **Notes to Consolidated Financial Statements**
  Dollar and share amounts in millions except per share, per option and per unit amounts 
  
  **Loyalty Program**
  Customers who use our Nordstrom private label credit or debit card or our Nordstrom Visa credit cards can participate in the Nordstrom 
  Rewards program through which customers accumulate points based on their level of spending. Upon reaching a certain points threshold, 
  customers receive Nordstrom Notes, which can be redeemed for goods or services at Nordstrom full-line stores in the U.S. and Canada, 
  Nordstrom Rack stores and at Nordstrom.com. Nordstrom Rewards customers receive reimbursements for alterations, get Personal Triple 
  Points days and have early access to sales events. With increased spending, they can receive additional amounts of these benefits as well 
  as access to exclusive fashion and shopping events. 
  
  We estimate the net cost of Nordstrom Notes that will be issued and redeemed and record this cost as rewards points are accumulated. 
  These costs, as well as reimbursed alterations, are recorded in cost of sales given that we provide customers with products and services for 
  these rewards. Other costs of the loyalty program, including shopping and fashion events, are recorded in selling, general and administrative 
  expenses. 