Neiman Marcus 2003 Annual Report Download - page 10

The Company's and its competitors' practices are subject to review in the ordinary course of business by the Federal Trade
Commission and are subject to numerous federal and state laws. Additionally, the Company is subject to certain customs, truth-in-
advertising and other laws, including consumer protection regulations, that regulate retailers generally and/or govern the importation,
promotion and sale of merchandise. The Company undertakes to monitor changes in these laws and believes that it is in material
compliance with all applicable state and federal regulations with respect to such practices.
ITEM 2. PROPERTIES
The Company's corporate headquarters are located at the Downtown Neiman Marcus store location in Dallas, Texas. The operating
headquarters for Neiman Marcus, Bergdorf Goodman and Neiman Marcus Direct are located in Dallas, Texas; New York, New York;
and Irving, Texas, respectively.
As of September 7, 2004, the Company operated 35 Neiman Marcus stores, located in Arizona (Scottsdale); California (five stores:
Beverly Hills, Newport Beach, Palo Alto, San Diego and San Francisco); Colorado (Denver); the District of Columbia; Florida (six
stores: Coral Gables, Fort Lauderdale, Orlando, Palm Beach, Tampa and Bal Harbour); Georgia (Atlanta); Hawaii (Honolulu); Illinois
(three stores: Chicago, Northbrook and Oak Brook); Missouri (St. Louis); Massachusetts (Boston); Minnesota (Minneapolis);
Michigan (Troy); Nevada (Las Vegas); New Jersey (two stores: Short Hills and Paramus); New York (Westchester); Pennsylvania
(King of Prussia); Texas (six stores: two in Dallas, one in Plano, one in Fort Worth and two in Houston); and Virginia (McLean). The
average size of these 35 stores is approximately 138,000 gross square feet and they range in size from 53,000 gross square feet to
224,000 gross square feet.
The Company plans to open new Neiman Marcus stores in San Antonio, Texas and Boca Raton, Florida in fiscal year 2006 and stores
in Austin, Texas; Charlotte, North Carolina; and Natick, Massachusetts in fiscal year 2007.
The Company operates two Bergdorf Goodman stores in Manhattan at 58th Street and Fifth Avenue. The main Bergdorf Goodman
store consists of 250,000 gross square feet and the Bergdorf Goodman Men's store consists of 66,000 gross square feet.
The Company operates fourteen clearance centers that average approximately 27,000 gross square feet.
As of September 7, 2004, the approximate aggregate gross square footage used in the Company's operations was as follows:
Owned
Owned
Subject to
Ground Lease Leased Total
Specialty Retail Stores 194,000 2,249,000 3,083,000 5,526,000
Distribution, Support and Office Facilities 1,317,000 353,000 2,308,000 3,978,000
Leases for substantially all of the Company's stores, including renewal options, range from 15 to 99 years. The lease on the Bergdorf
Goodman Main Store expires in 2050 and the lease on the Bergdorf Goodman Men's Store expires in 2010, with two 10-year renewal
options. Most leases provide for monthly fixed rentals or contingent rentals based upon sales in excess of stated amounts and
normally require the Company to pay real estate taxes, insurance, common area maintenance costs and other occupancy costs.
The Company owns approximately 34 acres of land in Longview, Texas, where its primary distribution facility is located. The
Longview facility occupies 612,000 square feet and is the principal merchandise processing and distribution facility for Neiman
Marcus stores. The Company also owns approximately 50 acres of land in Irving, Texas, where its 705,000 square foot Neiman
Marcus Direct operating headquarters and distribution facility is located.
For further information on the Company's properties and lease obligations, see Item 7, "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and Note 11 of the Notes to the Consolidated Financial Statements in Item 15.
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