Neiman Marcus 2009 Annual Report Download - page 46

Table of Contents
arrangement or 3) our failure to protect customer data or comply with regulations surrounding information security and
privacy;
Merchandise Procurement and Supply Chain Considerations
• changes in our relationships with designers, vendors and other sources of merchandise, including adverse changes in
their financial viability, cash flows or available sources of funds;
• delays in receipt of merchandise ordered due to work stoppages or other causes of delay in connection with either the
manufacture or shipment of such merchandise;
• changes in foreign currency exchange or inflation rates;
• significant increases in paper, printing and postage costs;
Industry and Competitive Factors
• competitive responses to our loyalty programs, marketing, merchandising and promotional efforts or inventory
liquidations by vendors or other retailers;
• adverse changes in the financial viability of our competitors;
• seasonality of the retail business;
• adverse weather conditions or natural disasters, particularly during peak selling seasons;
• delays in anticipated store openings and renovations;
• our success in enforcing our intellectual property rights;
Employee Considerations
• changes in key management personnel and our ability to retain key management personnel;
• changes in our relationships with certain of our key sales associates and our ability to retain our key sales associates;
Legal and Regulatory Issues
• changes in government or regulatory requirements increasing our costs of operations;
• litigation that may have an adverse effect on our financial results or reputation;
Leverage Considerations
• the effects of incurring a substantial amount of indebtedness under our senior secured credit facilities and our senior
notes and senior subordinated notes;
• the ability to refinance our indebtedness under our senior secured credit facilities and the effects of any refinancing;
• the effects upon us of complying with the covenants contained in our senior secured credit facilities and the indentures
governing our senior notes and senior subordinated notes;
• restrictions the terms and conditions of the indebtedness under our senior secured credit facilities may place on our
ability to respond to changes in our business or to take certain actions;
Other Factors
• impact of funding requirements related to our noncontributory defined benefit pension plan;
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