Neiman Marcus 2002 Annual Report Download - page 50

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At August 2, 2003, the key economic assumptions and sensitivity of the current fair value of Retained Interests to immediate 10
percent and 20 percent adverse changes in those assumptions are as follows (in millions):
Weighted Average Life (months)
Impact on fair value of 10 percent adverse change $ (0.7)
Impact on fair value of 20 percent adverse change $ (1.1)
Expected Credit Losses (annual rate)
Impact on fair value of 10 percent adverse change $ (0.9)
Impact on fair value of 20 percent adverse change $ (1.9)
Net Interest Spread
Impact on fair value of 10 percent adverse change $ (1.4)
Impact on fair value of 20 percent adverse change $ (2.7)
Discount Rate (weighted average rate)
Impact on fair value of 10 percent adverse change $ (0.6)
Impact on fair value of 20 percent adverse change $ (1.2)
These sensitivities are hypothetical in nature and are presented for illustrative purposes only. Changes in fair value based on a change
in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may
not be linear. The changes in assumptions presented above were calculated without changing any other assumptions. In actuality,
changes in one assumption may result in changes in another, which may magnify or counteract the sensitivities.
F-16