Neiman Marcus 2007 Annual Report Download - page 43

Table of Contents
2028 Debentures. In May 1998, NMG issued $125.0 million aggregate principal amount of its 7.125% 2028 Debentures.
NMG's 2028 Debentures mature on June 1, 2028.
See Note 9 of our Notes to Consolidated Financial Statements in Item 15 for a further description of the terms of the 2028
Debentures.
Senior Notes. NMG has $700.0 million aggregate original principal amount of 9.0% / 9.75% Senior Notes under a senior
indenture (Senior Indenture). NMG's Senior Notes mature on October 15, 2015.
See Note 9 of our Notes to Consolidated Financial Statements in Item 15 for a further description of the terms of the Senior
Notes.
Senior Subordinated Notes. NMG has $500.0 million aggregate principal amount of 10.375% Senior Subordinated Notes
under a senior subordinated indenture (Senior Subordinated Indenture). NMG's Senior Subordinated Notes mature on October 15,
2015.
See Note 9 of our Notes to Consolidated Financial Statements in Item 15 for a further description of the terms of the Senior
Subordinated Notes.
Interest Rate Swaps. NMG uses derivative financial instruments to help manage our interest rate risk. Effective December 6,
2005, NMG entered into floating to fixed interest rate swap agreements for an aggregate notional amount of $1,000.0 million to limit
our exposure to interest rate increases related to a portion of our floating rate indebtedness. The interest rate swap agreements
terminate after five years. At August 2, 2008, the fair value of NMG's interest rate swap agreements was a loss of approximately
$34.4 million, which amount is included in other long-term liabilities.
As of the effective date, NMG designated the interest rate swaps as cash flow hedges. As a result, changes in the fair value of
NMG's swaps are recorded subsequent to the effective date as a component of accumulated other comprehensive (loss) income.
As a result of the swap agreements, NMG's effective fixed interest rates as to the $1,000.0 million in floating rate
indebtedness will currently range from 6.524% to 6.733% per quarter through 2010 and result in an average fixed rate of 6.608%.
Contractual Obligations and Commitments
The following table summarizes our estimated significant contractual cash obligations at August 2, 2008:
Payments Due By Period
(in thousands) Total
Fiscal Year
2009
Fiscal
Years
2010-2011
Fiscal Years
2012-2013
Fiscal Year
2014 and
Beyond
Contractual obligations:
Senior Secured Term Loan Facility (1) $ 1,625,000 $ — $ — $ 1,625,000 $ —
Senior Notes 700,000 — — — 700,000
Senior Subordinated Notes 500,000 — — — 500,000
2028 Debentures 125,000 — — — 125,000
Interest requirements (2) 1,391,300 217,100 421,200 367,300 385,700
Lease obligations 938,700 56,300 106,500 93,400 682,500
Minimum pension funding obligation (3) — — — — —
Other long-term liabilities (4) 62,100 4,200 9,700 11,500 36,700
Construction and purchase commitments (5) 1,380,600 1,113,100 218,500 49,000 —
$ 6,722,700 $ 1,390,700 $ 755,900 $ 2,146,200 $ 2,429,900
39