Neiman Marcus 2007 Annual Report Download - page 44

Table of Contents
(1) We voluntarily repaid $100.0 million of term loans under this facility in the second quarter of fiscal year 2006 and $250.0
million in fiscal year 2007. 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
August 2, 2008 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 August 2, 2008 not
subject to interest rate swaps would increase annual interest rate requirements by approximately $6.3 million.
(3) Minimum pension funding requirements are not included above as such amounts are not currently quantifiable for all periods
presented. At July 31, 2008 (the most recent measurement date), our actuarially calculated projected benefit obligation for our Pension
Plan was $354.3 million and the fair value of the assets was $313.4 million. Our policy is to fund the Pension Plan at or above the
minimum amount required by law. We made a $15.0 million voluntary contribution to the Pension Plan in fiscal year 2008 and did
not make any contributions to the Pension Plan in fiscal year 2007. Based upon currently available information, we will not be
required to make significant contributions in fiscal year 2009 to the Pension Plan.
(4) Included in other long-term liabilities at August 2, 2008 are our liabilities for our Pension, SERP and Postretirement Plans
aggregating $134.6 million. Our scheduled obligations with respect to these liabilities consist of expected benefit payments through
2018, as currently estimated using information provided by our actuaries. Also included in other long-term liabilities at August 2,
2008 are our liabilities related to 1) the unrealized loss on financial instruments of $34.4 million, 2) uncertain tax positions (including
related accruals for interest and penalties) of $30.8 million and 3) other obligations aggregating $13.7 million, primarily for employee
benefits. Future cash obligations related to these liabilities are not currently estimable.
(5) Construction commitments relate primarily to obligations pursuant to contracts for the construction of new stores and the
renovation of existing stores expected as of August 2, 2008. These amounts represent the gross construction costs and exclude
developer contributions of approximately $91 million which we expect to receive pursuant to the terms of the construction contracts.
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.
The following table summarizes the expiration of our significant commercial commitments outstanding at August 2, 2008:
Amount of Commitment by Expiration Period
(in thousands) Total
Fiscal Year
2009
Fiscal
Years
2010-2011
Fiscal
Years
2012-2013
Fiscal Year
2014 and
Beyond
Other commercial commitments:
Senior secured asset-based revolving
credit facility(1) $ 600,000 $ — $ — $ 600,000 $ —
Surety bonds 4,000 3,300 700 — —
$ 604,000 $ 3,300 $ 700 $ 600,000 $ —
(1) As of August 2, 2008, we had no borrowings outstanding under our senior secured asset-based revolving credit facility and
had $576.0 million of unused borrowing availability, after giving effect to $24.0 million of outstanding letters of credit. Our working
capital requirements are greatest in the first and second fiscal quarters as a result of higher seasonal requirements. See "Description of
Other Indebtedness—Senior Secured Asset-Based Revolving Credit Facility" and "Management's Discussion and Analysis of
Financial Conditions and Results of Operations—Seasonality."
In addition to the items presented above, our other principal commercial commitments are comprised of common area
maintenance costs, tax and insurance obligations and contingent rent payments.
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