Neiman Marcus 2002 Annual Report Download - page 51

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While the Company's securitization program qualifies for sales treatment related to the Sold Interests, the following table compares
the amounts recorded by the Company as of August 2, 2003 and for 2003 to those that would have been recorded had the
securitization program not qualified for sales treatment and was accounted for as an on-balance sheet financing:
(in millions)
Amounts
Recorded
Pro forma -
On-Balance
Sheet Financing
Assets:
Undivided interests in NMG Credit Card Master Trust $ 243.1 $ —
Accounts receivable 22.6 484.0
Long-term liability:
Borrowings pursuant to credit card securitization program $ — $ 225.0
Income:
Finance charge income $ — $ 70.6
Gains on sales of Sold Interests 7.1 —
Income from Retained Interests, net 39.9 —
Servicing fee income 6.3 —
Expenses:
Interest expense on Class A Certificates — (3.9)
Bad debt expense, net — (14.3)
NOTE 3. Goodwill and Intangible Assets
The significant components of goodwill and intangible assets, included in other assets in the accompanying consolidated balance
sheets, are as follows:
(in thousands)
August 2,
2003
August 3,
2002
Goodwill $ 23,747 $ 33,202
Trademarks 68,797 126,654
92,544 159,856
Accumulated amortization — (42,432)
Goodwill and trademarks, net $ 92,544 $ 117,424
The Company adopted the provisions of SFAS No. 142, "Goodwill and Other Intangible Assets" as of the beginning of the first
quarter of 2003. SFAS No. 142 established a new fair value-based accounting model for the valuation of goodwill and indefinite-lived
intangible assets recorded in connection with business combinations. Pursuant to the provisions of SFAS No. 142, goodwill and
indefinite-lived intangible assets are measured for impairment by applying a fair value-based test at least annually and are not
amortized.
F-17