Neiman Marcus 2005 Annual Report Download - page 27

(Successor) (Predecessor)
Forty-three
weeks
ended
July 29,
2006
Nine
weeks
ended
October 1,
2005
Fiscal
year
ended
July 30,
2005
Fiscal
year
ended
July 31,
2004
Fiscal
year
ended
August 2,
2003
Fiscal
year
ended
August 3,
2002
OTHER OPERATING DATA:
Capital expenditures $ 141.0 $ 26.2 $ 199.7 $ 119.1 $ 128.4 $ 171.1
Depreciation expense $ 111.1 $ 19.7 $ 106.3 $ 98.1 $ 82.1 $ 77.3
Rent expense $ 59.6 $ 11.5 $ 65.9 $ 57.7 $ 53.6 $ 53.3
Change in comparable revenues(9) 6.4% 9.2% 9.8% 14.4% 3.8% (4.8)%
Number of stores open at period end 38 37 36 37 37 35
(1) For the forty-three weeks ended July 29, 2006, net earnings include a loss from discontinued operation of $13.9 million, which
includes $13.3 million of income tax expense related to the excess of the tax over book gain realized in connection with the
Gurwitch Disposition.
(2) For the nine weeks ended October 1, 2005, operating earnings includes $23.5 million of transaction and other costs incurred in
connection with the Transactions. These costs consist primarily of $4.5 million of accounting, investment banking, legal and
other costs associated with the Transactions and a $19.0 million non-cash charge for stock compensation resulting from the
accelerated vesting of Predecessor stock options and restricted stock in connection with the Acquisition.
(3) For fiscal year 2005, operating earnings include a $15.3 million pretax loss related to the disposition of Chef's Catalog and a
$6.2 million pretax gain related to the sale of our credit card portfolio.
(4) For fiscal year 2005, net earnings reflect tax benefits aggregating $7.6 million resulting from favorable settlements associated
with previous state tax filings and reductions in previously recorded deferred tax liabilities.
(5) For fiscal year 2004, operating earnings include a $3.9 million pretax impairment charge related to the writedown to fair value in
the net carrying value of the Chef's Catalog tradename intangible asset.
(6) For fiscal year 2004, net income reflects a $7.5 million tax benefit related to favorable settlements associated with previous state
tax filings.
(7) For fiscal year 2003, net earnings reflect an after-tax charge of $14.8 million for the writedown of certain intangible assets
related to prior purchase business combinations as a result of the implementation of a new accounting principle.
(8) For fiscal year 2002, operating earnings reflect 1) a $16.6 million gain from the change in vacation policy made by the Company
and 2) $13.2 million of impairment and other charges, related primarily to the impairment of certain long-lived assets.
(9) Comparable revenues include 1) revenues derived from our retail stores open for more than 52 weeks, including stores that have
been relocated or expanded, 2) revenues from our Direct Marketing operation and 3) revenues from Kate Spade LLC.
Comparable revenues exclude 1) revenues of closed stores, 2) revenues of Gurwitch Products, L.L.C. (sold in July 2006) and 3)
revenues of our previous Chef's Catalog operations (sold in November 2004). The calculation of the change in comparable
revenues for 2003 is based on revenues for the 52 weeks ended August 2, 2003 compared to revenues for the 52 weeks ended
July 27, 2002.
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