Neiman Marcus 2005 Annual Report Download - page 48

Contractual Obligations and Commitments
The following table summarizes our estimated significant contractual cash obligations at July 29, 2006:
Payments Due By Period
(in thousands) Total
Fiscal Year
2007
Fiscal
Years
2008-2009
Fiscal
Years
2010-2011
Fiscal Year
2012 and
Beyond
Contractual obligations:
Senior Secured Term Loan Facility (1) $ 1,875,000 $ — $ — $ — $ 1,875,000
Senior Notes 700,000 — — — 700,000
Senior Subordinated Notes 500,000 — — — 500,000
2028 Debentures 125,000 — — — 125,000
Interest requirements (2) 2,124,000 267,000 534,000 540,000 783,000
Operating lease obligations 808,900 47,800 99,400 93,500 568,200
Minimum pension funding obligation (3) — — — — —
Other long-term liabilities (4) 68,500 8,100 13,500 11,400 35,500
Construction commitments 235,000 97,800 137,200 — —
Inventory purchase commitments (5) 953,900 953,900 — — —
$ 7,390,300 $ 1,374,600 $ 784,100 $ 644,900 $ 4,586,700
(1) $100.0 million of term loans under this facility were repaid in the second quarter of fiscal year 2006. The above table does not
reflect future excess cash flow prepayments, if any, that may be required under the term loan facility.
(2) The cash obligations for interest requirements reflect 1) interest requirements on our fixed-rate debt obligations at their contractual rates, 2) interest
requirements on floating rate debt obligations not subject to interest rate swaps at rates in effect at July 29, 2006 and 3) interest requirements on floating rate
debt obligations subject to interest rate swaps at the fixed rates provided through the swap agreements. A 1% increase in the floating rates related to floating
rate debt outstanding at July 29, 2006 not subject to interest rate swaps would increase annual interest rate requirements by approximately $8.8 million.
(3) Minimum pension funding requirements are not included above as such amounts are not currently quantifiable for all periods
presented. In fiscal year 2007, we do not believe we will be required to make any contributions to our Pension Plan for the plan year
ended July 31, 2006.
(4) Other long-term liabilities of $192.2 million reflected on our balance sheet at July 29, 2006 include our obligations related to
our supplemental retirement and postretirement health care benefit plans. The other long-term liabilities payments primarily include the
expected benefit payments for these obligations (through 2015), as currently estimated by our actuaries. The timing of the expected
payments for our remaining long-term liabilities, primarily for other employee benefit plans and arrangements, are not currently
estimable.
(5) In the normal course of our business, we issue purchase orders to vendors/suppliers for merchandise. Our 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, we may cancel the order.
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