Neiman Marcus 2007 Annual Report Download - page 107

Table of Contents
NOTE 8. ACCRUED LIABILITIES
The significant components of accrued liabilities are as follows:
(Successor)
(in thousands)
August 2,
2008
July 28,
2007
Accrued salaries and related liabilities $ 51,857 $ 79,021
Amounts due customers 60,602 51,750
Self-insurance reserves 44,132 44,544
Sales returns reserves 45,042 48,819
Interest payable 34,756 35,146
Income taxes payable — 30,052
Sales tax 24,047 23,429
Loyalty program liability 22,974 20,477
Other 75,989 69,924
Total $ 359,399 $ 403,162
NOTE 9. LONG-TERM DEBT
The significant components of our long-term debt are as follows:
(Successor)
(in thousands) Interest Rate
August 2,
2008
July 28,
2007
Senior Secured Term Loan Facility variable $ 1,625,000 $ 1,625,000
2028 Debentures 7.125% 121,102 120,906
Senior Notes 9.0%/9.75% 700,000 700,000
Senior Subordinated Notes 10.375% 500,000 500,000
Long-term debt $ 2,946,102 $ 2,945,906
Senior Secured Asset-Based Revolving Credit Facility. On October 6, 2005, in connection with the Acquisition, NMG entered into a credit
agreement and related security and other agreements for a senior secured Asset-Based Revolving Credit Facility with Deutsche Bank Trust Company
Americas as administrative agent and collateral agent. The Asset-Based Revolving Credit Facility provides financing of up to $600.0 million, subject to a
borrowing base equal to at any time the lesser of 80% of eligible inventory (valued at the lower of cost or market value) and 85% of net orderly liquidation
value of the eligible inventory, less certain reserves. The Asset-Based Revolving Credit Facility includes borrowing capacity available for letters of credit and
for borrowings on same-day notice.
As of August 2, 2008, NMG had $576.0 million of unused borrowing availability under the Asset-Based Revolving Credit
Facility based on a borrowing base of over $600.0 million and after giving effect to $24.0 million used for letters of credit.
The Asset-Based Revolving Credit Facility provides that NMG has the right at any time to request up to $200.0 million of
additional commitments, but the lenders are under no obligation to provide any such additional commitments, and any increase in
commitments will be subject to customary conditions precedent. If NMG were to request any such additional commitments and the
existing lenders or new lenders were to agree to provide such commitments, the Asset-Based Revolving Credit Facility size could be
increased to up to $800.0 million, but NMG's ability to borrow would still be limited by the amount of the borrowing base.
Borrowings under the Asset-Based Revolving Credit Facility bear interest at a rate per annum equal to, at NMG's option,
either (a) a base rate determined by reference to the higher of (1) the prime rate of Deutsche Bank Trust Company Americas and
(2) the federal funds effective rate plus 1/2 of 1% or (b) a LIBOR rate, subject to certain adjustments, in each case plus an applicable
margin. The applicable margin is 0% with respect to base rate borrowings and up to 1.75% with respect to LIBOR borrowings. The
applicable margin is subject to adjustment based on the historical availability under the Asset-Based Revolving Credit Facility. In
addition, NMG is required to pay a commitment fee of 0.375% per annum in respect of the
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