text: **Nordstrom, Inc.**
  **Notes to Consolidated Financial Statements**
  Dollar and share amounts in millions except per share, per option and per unit amounts 
  
  As part of the acquisition, we created a Value Creation Plan (“VCP”) to incentivize Trunk Club employees to increase the value of the Trunk 
  Club business. The VCP has three payout scenarios that are determined based on the Trunk Club business meeting minimum or exceeding 
  maximum fiscal 2018 sales and earnings metrics. If the minimum is not met, the payout is $0 (“Outcome A”); if the maximum is met, the 
  payout is $100 (“Outcome B”). If the sales and earnings metrics surpass the minimum but do not reach the maximum, the payout is based on 
  the incremental value growth of the Trunk Club business since acquisition, and will be between $0 and $100 (“Outcome C”). 
  
  We estimate the grant date fair value for each outcome and recognize expense based upon Outcome C, deemed most probable. If at any 
  time it becomes probable that another outcome will be achieved, compensation expense will be cumulatively adjusted based on the grant 
  date fair value associated with that outcome. 
  
  The final payout amount will be determined at the end of fiscal 2018 and settled in fiscal 2019 at our discretion in either cash or stock. We 
  intend to settle the VCP in stock. 