text: **Nordstrom, Inc.**
  **Notes to Consolidated Financial Statements**
  Dollar and share amounts in millions except per share, per option and per unit amounts 
  
  Leasehold improvements and leased property and equipment that are purchased at the inception of the lease, or during the lease term, are 
  depreciated over the shorter of the lease term or the asset life. Lease terms include the fixed, non-cancelable term of a lease, plus any 
  renewal periods determined to be reasonably assured. 
  
  **Goodwill, Intangible Assets and Long-Lived Assets**
  Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired and is not subject to amortization. As 
  of January 31, 2015, we had Trunk Club goodwill of $261, HauteLook goodwill of $121 and Nordstrom.com and Jeffrey goodwill of $53. We 
  review our goodwill annually for impairment or when circumstances indicate its carrying value may not be recoverable. We perform this 
  evaluation at the reporting unit level, comprised of the principal business units within our Retail segment, through the application of a two-step 
  fair value test. The first step compares the carrying value of the reporting unit to its estimated fair value, which is based on the expected 
  present value of future cash flows (income approach), comparable public companies and acquisitions (market approach) or a combination of 
  both. If fair value is lower than the carrying value, then a second step is performed to quantify the amount of the impairment. The fair value of 
  Trunk Club’s reporting unit will be tested in 2015. 