Neiman Marcus 2005 Annual Report Download - page 116

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Based upon currently available information, we will not be required to make contributions to the Pension Plan for the plan year
ended July 31, 2006.
Assets held by the Pension Plan are invested in accordance with the provisions of our approved investment policy. The asset
allocation for our Pension Plan at the end of 2006 and the target allocation for 2007, by asset category, are as follows:
Pension Plan
Allocation
at July 31,
2006
2007
Target
Allocation
Equity securities 73 % 80 %
Fixed income securities 24 % 20 %
Cash and equivalents 3%—
Total 100 %100 %
The Pension Plan's strategic asset allocation was structured to reduce volatility through diversification and enhance return to
approximate the amounts and timing of the expected benefit payments.
Changes in the assets held by the Pension Plan in fiscal years 2006 and 2005 are as follows:
Fiscal years
(in thousands) 2006 2005
(Successor) (Predecessor)
Fair value of assets at beginning of year $ 288,267 $ 243,097
Actual return on assets 13,976 32,888
Company contributions — 20,000
Benefits paid (8,523 ) (7,718 )
Fair value of assets at end of year $ 293,720 $ 288,267
Funded Status. The funded status of our Pension Plan, SERP Plan and Postretirement Plan is as follows:
Pension Plan SERP Plan Postretirement Plan
Fiscal years Fiscal years Fiscal years
(in thousands) 2006 2005 2006 2005 2006 2005
(Successor) (Predecessor) (Successor) (Predecessor) (Successor) (Predecessor)
Projected benefit obligation $ 364,720 $ 361,434 $ 78,322 $ 78,259 $ 12,975 $ 15,755
Fair value of plan assets 293,720 288,267 — — —
Excess of projected benefit obligation over
fair value of plan assets (71,000 ) (73,167 ) (78,322 ) (78,259 ) (12,975 ) (15,755
Unrecognized net actuarial loss (gain) (7,819 ) 121,862 (2,036 ) 25,160 (2,004 ) (2,515
Unrecognized prior service (income) cost — (155 ) — 2,619 —
Unrecognized net obligation at transition — 157 — — —
Prepaid asset (accrued obligation) $ (78,819 )$ 48,697 $ (80,358 )$ (50,480 )$ (14,979 )$ (18,109
Accumulated benefit obligation $ 308,255 $ 304,063 $ 66,890 $ 65,028
Fair value of plan assets 293,720 288,267 — —
Deficiency of assets over obligation $ (14,535 )$ (15,796 )$ (66,890 )$ (65,028 )
Our Pension Plan and SERP Plan obligations and funded status of such plans are recognized in our consolidated balance sheets
as follows:
Pension Plan SERP Plan
Fiscal years Fiscal years
(in thousands) 2006 2005 2006 2005
(Successor) (Predecessor) (Successor) (Predecessor)
Prepaid asset (accrued obligation) $ (78,819 ) $ 48,697 $ (80,358 ) $ (50,480
Intangible asset — (2 ) — (2,619
Other comprehensive loss—additional minimum liability — (64,491 )— (11,929
Net accrued benefit obligation in the consolidated balance sheets $ (78,819 )$ (15,796 )$ (80,358 )$ (65,028