Nordstrom, Inc. Notes to Consolidated Financial Statements Dollar and share amounts in millions except per share, per option and per unit amounts NOTE 16: SEGMENT REPORTING Segments Accounting Policy 62 We have two reportable segments:  Retail  and  Credit . Our  Retail  segment includes our “Nordstrom” operating segment, which is composed  of our Nordstrom full-line stores in the U.S. and our online store at Nordstrom.com. Through our multi-channel initiatives, we have integrated  the operations, merchandising and technology of our Nordstrom full-line and online stores, consistent with our customers’ expectations of a  seamless shopping experience regardless of channel. Our internal reporting to our president, who is our chief operating decision maker, is  consistent with these multi-channel initiatives. We aggregate our Nordstrom Rack operating segment into the Retail reporting segment, based  on similar economic and other qualitative characteristics. Additionally, we include Nordstromrack.com, HauteLook, Jeffrey, Trunk Club and our  Canadian operations in the Retail reporting segment. Through our  Credit  segment, we provide our customers with a variety of payment products and services, including a Nordstrom private label  card, two Nordstrom Visa credit cards and a debit card for Nordstrom purchases. Our credit and debit card products also include a loyalty  program that provides benefits to our cardholders based on their level of spending. Amounts in the  Corporate/Other  column include unallocated corporate expenses and assets, sales return reserve, inter-segment  eliminations and other adjustments to segment results necessary for the presentation of consolidated financial results in accordance with  generally accepted accounting principles.  In general, we use the same measurements to compute earnings before income taxes for reportable segments as we do for the consolidated  company. However, redemptions of our Nordstrom Notes are included in net sales for our Retail segment. The sales amount in our  Corporate/Other column includes an entry to eliminate these transactions from our consolidated net sales. The related Nordstrom Notes  expenses are included in our Retail segment at face value. Our Corporate/Other column includes an adjustment to reduce the Nordstrom  Notes expense from face value to their estimated cost. In addition, our sales return reserve and other corporate adjustments are recorded in  the Corporate/Other column. Other than as described above, the accounting policies of the operating segments are the same as those  described in Note 1: Nature of Operations and Summary of Significant Accounting Policies.