Neiman Marcus 2009 Annual Report Download - page 23

Table of Contents
Bergdorf Goodman Stores. We operate two Bergdorf Goodman stores, both of which are located in Manhattan at 58th Street
and Fifth Avenue. The following table sets forth certain details regarding these stores:
Bergdorf Goodman Stores
Locations
Fiscal Year
Operations
Began
Gross Store
Sq. Feet
New York City (Main)(1) 1901 250,000
New York City (Men's)(1)* 1991 66,000
(1) Leased.
* Mortgaged to secure our senior secured credit facilities and the 2028 Debentures.
Neiman Marcus Last Call stores. As of September 15, 2010, we operated 28 Neiman Marcus Last Call stores that average
approximately 28,900 square feet each in size.
Distribution, support and office facilities. We own approximately 41 acres of land in Longview, Texas, where our primary
distribution facility is located. The Longview facility is the principal merchandise processing and distribution facility for Neiman
Marcus stores. We currently utilize a regional distribution facility in Dayton, New Jersey and four regional service centers in New
York, Florida, Texas and California. We also own approximately 50 acres of land in Irving, Texas, where our Direct Marketing
operating headquarters and distribution facility is located. In addition, we currently utilize another regional distribution facility in
Dallas, Texas to support our Direct Marketing operation.
Lease Terms. The terms of the leases for substantially all of our stores, assuming all outstanding renewal options are
exercised, range from 1 to 101 years. The lease on the Bergdorf Goodman Main Store expires in 2050, with no renewal options, and
the lease on the Bergdorf Goodman Men's Store expires in 2020, with a 10-year renewal option. Most leases provide for monthly
fixed rentals or contingent rentals based upon sales in excess of stated amounts and normally require us to pay real estate taxes,
insurance, common area maintenance costs and other occupancy costs.
For further information on our properties and lease obligations, see Item 7, "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and Note 14 in the Notes to Consolidated Financial Statements in Item 15.
ITEM 3. LEGAL PROCEEDINGS
On April 30, 2010, a Class Action Complaint for Injunction and Equitable Relief was filed in the United States District Court
for the Central District of California by Sheila Monjazeb, individually and on behalf of other members of the general public similarly
situated, against the Company, Newton Holding, LLC, TPG Capital, L.P. and Warburg Pincus, LLC. On July 12, 2010, all defendants
except for the Company were dismissed without prejudice, and on August 20, 2010, this case was refiled in the Superior Court of
California for San Francisco County. This complaint, along with a similar class action lawsuit originally filed by Bernadette
Tanguilig in 2007, alleges that the Company has engaged in various violations of the California Labor Code and Business and
Professions Code, including without limitation (1) asking employees to work "off the clock," (2) failing to provide meal and rest
breaks to its employees, (3) improperly calculating deductions on paychecks delivered to its employees, and (4) failing to provide a
chair or allow employees to sit during shifts. The plaintiffs in these matters seek certification of their case as a class action,
reimbursement for past wages and temporary, preliminary and permanent injunctive relief preventing defendant from allegedly
continuing to violate the laws cited in their complaints. We intend to vigorously defend our interests in these matters. Currently, we
cannot reasonably estimate the amount of loss, if any, arising from these matters. However, we do not currently believe the resolution
of these matters will have a material adverse impact on our financial position. We will continue to evaluate these matters based on
subsequent events, new information and future circumstances.
We are currently involved in various other legal actions and proceedings that arose in the ordinary course of business. We
believe that any liability arising as a result of these actions and proceedings will not have a material adverse effect on our financial
position, results of operations or cash flows.
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