Neiman Marcus 2009 Annual Report Download - page 126

Table of Contents
Investment securities, in general, are exposed to various risks such as interest rate, credit, and overall market volatility. Due
to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment
securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets
available for benefits. The valuation methods previously described above may produce a fair value calculation that may not be
indicative of net realized value or reflective of future fair values.
The following table sets forth by level, within the fair value hierarchy, the Pension Plan's assets at fair value as of July 31,
2010.
(in thousands) Level 1 Level 2 Level 3 Total
Corporate stock (1) $ 20,114 $ — $ — $ 20,114
Corporate debt securities (2):
Financial services — 9,436 — 9,436
Industrial — 6,726 — 6,726
Other — 14,768 — 14,768
Total corporate debt securities — 30,930 — 30,930
Mutual funds:
Domestic income (1) 42,694 — — 42,694
Fixed income (2) 40,245 — — 40,245
Total mutual funds 82,939 — — 82,939
Common/collective trusts (1) — 41,802 — 41,802
U.S. government securities (2) 6,481 1,598 — 8,079
Hedge funds/limited partnership interests (1):
Equity-long/short — — 58,645 58,645
Absolute return — — 45,592 45,592
Equity-foreign/developed markets — — 15,846 15,846
Other — — 6,945 6,945
Total hedge funds/limited partnership
interests — — 127,028 127,028
Other (2) — 3,574 — 3,574
Total investments $ 109,534 $ 77,904 $ 127,028 $ 314,466
(1) Equity securities.
(2) Fixed income securities.
The table below sets forth a summary of changes in the fair value of the Pension Plan's Level 3 investment assets for the year
ended July 31, 2010.
(in thousands)
Balance, beginning of year $ 108,278
Realized loss (9,390)
Unrealized gains relating to investments still held at July 31, 2010 12,024
Purchases 22,946
Sales (6,830)
Balance, end of year $ 127,028
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