Neiman Marcus 2004 Annual Report Download - page 44

our success in enforcing our intellectual property rights;
Employee Considerations
changes in key management personnel and our ability to retain key management personnel;
changes in our relationships with certain of our key sales associates and our ability to retain our key sales associates;
Legal and Regulatory Issues
changes in government or regulatory requirements increasing our costs of operations;
litigation that may have an adverse effect on our financial results or reputation;
Other Factors
impact of funding requirements related to our noncontributory defined benefit pension plan; and
the design and implementation of new information systems as well as enhancements of existing systems.
The Transactions
In addition to the above factors, the consummation of the Transactions will result in the Company becoming highly leveraged. As a result, we will be
subject to additional risk factors subsequent to the consummation of the Transactions including:
the effects of incurring a substantial amount of indebtedness under our new senior secured credit facilities and the notes;
the effects upon us of complying with the covenants contained in our new senior secured credit facilities and the indentures governing the notes;
and
restrictions the terms and conditions of the indebtedness under our new senior secured credit facilities may place on our ability to respond to
changes in our business or to take certain actions.
The foregoing factors are not exhaustive, and new factors may emerge or changes to the foregoing factors may occur that could impact our business.
Except to the extent required by law, we undertake no obligation to update or revise (publicly or otherwise) any forward-looking statements to reflect
subsequent events, new information or future circumstances.
Critical Accounting Policies
Our accounting policies are more fully described in Note 1 of the Notes to Consolidated Financial Statements in Item 15. As disclosed in Note 1 of the
Notes to Consolidated Financial Statements, the preparation of financial statements in conformity with generally accepted accounting principles requires us to
make estimates and assumptions about future events. These estimates and assumptions affect the amounts of assets, liabilities, revenues and expenses and the
disclosure of gain and loss contingencies at the date of the Consolidated Financial Statements.
While we believe that our past estimates and assumptions have been materially accurate, the amounts we have currently estimated are subject to change
if different assumptions as to the outcome of future events were made. We evaluate our estimates and judgments on an ongoing basis and predicate those
estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances. We make adjustments
to our assumptions and
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