Nordstrom, Inc. Notes to Consolidated Financial Statements Dollar and share amounts in millions except per share, per option and per unit amounts The components of the purchase price consideration and the net assets acquired as of the acquisition date are as follows: The $357 purchase price, which is based on the closing stock price of $69 per share on August 22, 2014, includes $46 attributable to Trunk  Club employee stock awards that are subject to ongoing vesting requirements. The $46 will be recorded as compensation expense as the  related service is performed over the respective employee vesting periods of up to four years after the acquisition date. Of the purchase price  consideration, $9 is attributable to an adjustment holdback settled primarily in Nordstrom stock in the fourth quarter of fiscal 2014 and $35  represents an indemnity holdback that will be settled primarily in Nordstrom stock over the next three years upon satisfaction of the  representations, warranties and covenants subject to the indemnities. Purchase Price Consideration Net Assets Acquired Of the $311 net purchase price, $280 was recorded to common stock for 3.6 Nordstrom common shares at acquisition, 0.1 fully vested  Nordstrom stock options and 0.1 Nordstrom common shares for the release of an acquisition adjustment holdback. The remaining $31 of net  purchase price was recorded as a liability for future issuances of shares and cash related to the indemnity holdback. We allocated the net purchase price of $311 to the tangible and intangible assets acquired and liabilities assumed based on their estimated  fair values on the acquisition date, with the remaining unallocated net purchase price recorded as goodwill. We estimated the fair values of  the acquired intangible assets based on discounted cash flow models using estimates and assumptions regarding future operations and cash  flows. We will amortize the acquired intangible assets over their estimated lives on a straight-line basis, which approximates the pattern of  expected economic benefit. The expected amortization periods for intangible assets acquired are seven years for trade names, two years for  technology and 2.5 years for customer relationships. We expect to record total amortization expense of $59 associated with these intangible  assets over the next seven years, including $5 recognized in 2014. Goodwill of $261 is equal to the excess of the net purchase price over the identifiable assets acquired and liabilities assumed and represents  the acquisition’s benefits that are not attributable to individually identified and separately recognized assets. These benefits include our  expected ability to increase innovation and speed in the way we serve customers across channels, Trunk Club’s assembled workforce,  including its key management, and the going-concern value of acquiring Trunk Club’s business as a whole. We assigned this goodwill, which  is not deductible for tax purposes, to our Retail segment.  Nordstrom, Inc. and subsidiaries 47 August 22, 2014 Purchase Price Consideration Purchase price fair value $357 Less: post-combination compensation expense (46) Net purchase price $311 Net Assets Acquired Current assets $21 Intangible assets: Trade names 47 Technology 7 Customer relationships 5 Goodwill 261 Other non-current assets 2 Total assets acquired 343 Less: total liabilities assumed (32) Net assets acquired $311