Neiman Marcus 2003 Annual Report Download - page 24

Contractual Obligations and Commitments
The Company's estimated significant contractual cash obligations and other commercial commitments at July 31, 2004 are
summarized in the following table:
Payments Due By Period
(in thousands) Total
Fiscal Year
2005
Fiscal Years
2006 - 2007
Fiscal Years
2008 - 2009
Fiscal Year
2010 and
Beyond
Contractual obligations
Credit Card Facility borrowings $ 225,000 $ 150,000 $ 75,000 $ — $ —
Senior notes 125,000 — — 125,000 —
Senior debentures 125,000 — — — 125,000
Interest requirements 238,000 17,800 35,600 25,800 158,800
Capital lease obligations 600 600 — — —
Operating lease obligations 774,300 46,700 85,500 75,100 567,000
Construction commitments 86,600 38,100 48,500 — —
Inventory purchase commitments (1) 837,700 837,700 — — —
$ 2,412,200 $ 1,090,900 $ 244,600 $ 225,900 $ 850,800
(1) In the normal course of its business, the Company issues purchase orders to vendors/suppliers for merchandise. The Company's
purchase orders are not unconditional commitments but, rather represent executory contracts requiring performance by the
vendors/suppliers, including the delivery of the merchandise prior to a specified cancellation date and the compliance with
product specifications, quality standards and other requirements. In the event of the vendor's failure to meet the agreed upon
terms and conditions, the Company may cancel the order.
Amount of Commitment By Expiration Period
Total
Fiscal Year
2005
Fiscal Years
2006 - 2007
Fiscal Years
2008 - 2009
Fiscal Year
2010 and
Beyond
Other commercial commitments
Credit Agreement $ 350,000 $ — $ — $ 350,000 $ —
Other lending facilities 9,500 9,500 — — —
Letters of credit 15,000 15,000 — — —
Surety bonds 2,800 2,800 — — —
$ 377,300 $ 27,300 $ — $ 350,000 $ —
In addition to the items presented above, the Company's other principal commercial commitments are comprised of Pension Plan
funding obligations, common area maintenance costs, tax and insurance obligations and contingent rent payments.
At August 1, 2004 (the most recent measurement date), the Company's actuarially calculated projected benefit obligation for its
Pension Plan was $281.4 million and the fair value of the assets was $243.1 million. The Company's policy is to fund the Pension
Plan at or above the minimum amount required by law. In 2004, the Company made voluntary contributions of $30 million in the
second quarter and $15.0 million in the fourth quarter for the plan year ended July 31, 2003. In the third quarter of 2003, the
Company made a required contribution of $11.5 million and a voluntary contribution of $13.5 million to the Pension Plan for the plan
year ended July 31, 2002. In addition, the Company made contributions of $5.8 million in 2003 for the plan year ended July 31,
2003. Based upon currently available information, the Company will not be required to make contributions to the Pension Plan for the
plan year ended July 31, 2004
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