Neiman Marcus 2008 Annual Report Download - page 115

Table of Contents
Maturities of Long-Term Debt. At August 1, 2009, annual maturities of long-term debt during the next five fiscal years and
thereafter are as follows (in millions):
2010 $ 26.6
2011 —
2012 —
2013 1,598.4
2014 —
Thereafter 1,355.8
The above table does not reflect either future excess cash flow prepayments, if any, that may be required under the Senior
Secured Term Loan Facility or additional principal amounts under the Senior Notes that will be outstanding as a result of our current
PIK Interest election for the quarterly interest period ending October 14, 2009, or any future PIK Interest election that we may make
through October 15, 2010.
Interest expense. The significant components of interest expense are as follows:
Fiscal year ended
(in thousands)
August 1,
2009
August 2,
2008
July 28,
2007
Senior Secured Term Loan Facility $ 90,952 $ 106,504 $ 128,380
2028 Debentures 8,906 8,903 8,915
Senior Notes 66,356 63,000 63,000
Senior Subordinated Notes 52,028 51,875 51,875
Amortization of debt issue costs 17,185 14,217 14,141
Other 3,709 3,275 3,689
Total interest expense 239,136 247,774 270,000
Less:
Interest income 2,569 4,933 7,370
Capitalized interest 993 3,036 2,825
Interest expense, net $ 235,574 $ 239,805 $ 259,805
NOTE 10. FAIR VALUE MEASUREMENTS
In the first quarter of fiscal year 2009, we adopted Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" (SFAS 157), which provides guidance for using fair value to measure certain assets and liabilities. SFAS 157 applies
whenever another standard requires or permits assets or liabilities to be measured at fair value. The standard does not expand the use
of fair value to any new circumstances.
SFAS 157 defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an
orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that
asset or liability. The fair value is calculated based on assumptions that market participants would use in pricing the asset or liability,
not on assumptions specific to the entity. In addition, the fair value of liabilities includes consideration of non-performance risk,
including our own credit risk.
In addition to defining fair value, SFAS 157 expands the disclosure requirements around fair value and establishes a fair value
hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in
measuring fair value are observable in the market. Each fair value measurement is reported in one of the following three levels:
• Level 1 — valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.
• Level 2 — valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical
or similar instruments in markets that are not active, and model-based valuation techniques for which all
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