Neiman Marcus 2002 Annual Report Download - page 58
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Significant components of the Company's net deferred income tax asset are as follows:
(in thousands)
August 2,
2003
August 3,
2002
Deferred income tax assets:
Accruals and reserves $ 29,096 $ 34,124
Employee benefits 41,079 27,933
Other 1,845 1,372
Total deferred tax assets $ 72,020 $ 63,429
Deferred income tax liabilities:
Inventory $ (6,602) $ (2,627)
Depreciation and amortization (36,803) (40,229)
Other (3,714)(5,078)
Total deferred tax liabilities (47,119)(47,934)
Net deferred income tax asset $ 24,901 $ 15,495
Net deferred income tax asset:
Current $ 17,586 $ 17,746
Non-current 7,315 (2,251)
Total $ 24,901 $ 15,495
The net deferred tax asset increased by $9.4 million in 2003 due to deferred tax benefits of $16.8 million (related primarily to the
recording of an additional minimum pension liability of $39.3 million) credited to shareholders' equity, offset by a $7.4 million
deferred tax provision charged to earnings. The net deferred tax asset increased by $9.1 million in 2002 due to deferred tax benefits of
$10.3 million credited to earnings and a deferred tax provision of $1.2 million charged to shareholders' equity. The Company believes
it is more likely than not that it will realize the recorded deferred tax assets through future taxable earnings.
NOTE 9. Employee Benefit Plans
The Company sponsors a defined benefit Pension Plan covering substantially all full-time employees. The Company also sponsors an
unfunded supplemental executive retirement plan (SERP Plan) which provides certain employees additional pension benefits.
Benefits under both plans are based on the employees' years of service and compensation over defined periods of employment. When
funding is required, the Company's policy is to contribute amounts that are deductible for federal income tax purposes. Pension Plan
assets consist primarily of equity and fixed income securities.
The components of pension expense for the Pension Plan are as follows:
Years Ended
(in thousands)
August 2,
2003
August 3,
2002
July 28,
2001
Service cost $ 9,110 $ 8,422 $ 6,740
Interest cost 15,196 13,571 12,037
Expected return on plan assets (14,591) (14,389) (15,718)
Net amortization of losses (gains) and prior service costs 407 283 (289)
Pension Plan expense $ 10,122 $ 7,887 $ 2,770
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