Neiman Marcus 2008 Annual Report Download - page 127

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Other. We had approximately $32.8 million of outstanding irrevocable letters of credit relating to purchase commitments
and insurance and other liabilities at August 1, 2009. We had approximately $3.1 million in surety bonds at August 1, 2009 relating
primarily to merchandise imports and state sales tax and utility requirements.
NOTE 16. ACCUMULATED OTHER COMPREHENSIVE LOSS
The following table shows the components of accumulated other comprehensive loss (amounts are recorded net of related
income taxes):
(in thousands)
August 1,
2009
August 2,
2008
Unrealized loss on financial instruments $ (35,508) $ (21,755)
Change in unfunded benefit obligations (69,011) 12,302
Other (68)289
Total accumulated other comprehensive loss $ (104,587)$ (9,164)
NOTE 17. SEGMENT REPORTING
We have identified two reportable segments: Specialty Retail stores and Direct Marketing. The Specialty Retail stores
segment aggregates the activities of our Neiman Marcus and Bergdorf Goodman retail stores, including Neiman Marcus clearance
stores. The Direct Marketing segment conducts both online and print catalog operations under the Neiman Marcus, Bergdorf
Goodman and Horchow brand names. Both the Specialty Retail stores and Direct Marketing segments derive their revenues from the
sales of high-end fashion apparel, accessories, cosmetics and fragrances from leading designers, precious and fashion jewelry and
decorative home accessories.
Operating earnings for the segments include 1) revenues, 2) cost of sales, 3) direct selling, general, and administrative
expenses, 4) other direct operating expenses, 5) income from credit card program and 6) depreciation expense for the respective
segment. Items not allocated to our operating segments include those items not considered by management in measuring the assets
and profitability of our segments. These amounts include 1) corporate expenses including, but not limited to, treasury, investor
relations, legal and finance support services, and general corporate management, 2) charges related to the application of purchase
accounting adjustments made in connection with the Acquisition including amortization of intangible assets and favorable lease
commitments and other non-cash items and 3) interest expense. These items, while often times related to the operations of a segment,
are not considered by segment operating management, corporate operating management and the chief operating decision maker in
assessing segment operating performance. The accounting policies of the operating segments are the same as those described in the
summary of significant accounting policies (except with respect to purchase accounting adjustments not allocated to the operating
segments).
The following table presents our revenues by merchandise category as a percentage of net sales:
Years Ended
August 1,
2009
August 2,
2008
July 28,
2007
Women's Apparel 36 % 36 % 37 %
Women's Shoes, Handbags and Accessories 21 % 20 % 20 %
Cosmetics and Fragrances 11 % 11 % 11 %
Men's Apparel and Shoes 12 % 12 % 12 %
Designer and Precious Jewelry 11 % 12 % 11 %
Home Furnishings and Décor 7 % 8 % 9 %
Other 2%1%0%
100 %100 %100 %
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