Neiman Marcus 2014 Annual Report Download - page 144
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Table of Contents
Other expenses consists of the following components:
Costs incurred in connection with the Acquisition:
Change-in-control cash payments due to Former
Sponsors and management
$ —
$ —
$ 80,457
$ —
Stock-based compensation for accelerated vesting of
Predecessor stock options (including non-cash charges
of $15.4 million)
—
51,510
—
—
Other, primarily professional fees
—
1,812
28,942
—
Total Acquisition transaction costs
—
53,322
109,399
—
MyTheresa transaction costs
19,414
2,050
—
—
Expenses incurred in connection with strategic initiatives
11,644
5,733
155
—
Expenses related to cyber-attack, net of insurance recovery
4,078
12,587
—
—
Equity in loss of Asian e-commerce retailer
—
3,613
1,523
13,125
Management fee due to Former Sponsors
—
—
2,823
10,000
Other expenses
4,338
4,775
—
—
Total
$ 39,474
$ 82,080
$ 113,900
$ 23,125
We discovered in January 2014 that malicious software (malware) was clandestinely installed on our computer systems. In fiscal year 2015 and the
thirty-nine weeks ended August 2, 2014, we incurred investigative, legal and other expenses in connection with a cyber-attack. We expect to incur ongoing
costs related to the cyber-attack for the foreseeable future. Such expenses are not currently estimable but could be material to our future results of operations.
In the third quarter of fiscal year 2014, we sold our prior investment in an Asian e-commerce retailer, which was previously accounted for under the
equity method, for $35.0 million, which amount equaled the carrying value of our investment.
2028 Debentures. All of NMG’s obligations under the 2028 Debentures are guaranteed by the Company. The guarantee by the Company is full and
unconditional and is subject to automatic release if the requirements for legal defeasance or covenant defeasance of the 2028 Debentures are satisfied, or if
NMG’s obligations under the indenture governing the 2028 Debentures are discharged. Currently, the Company’s non-guarantor subsidiaries under the 2028
Debentures consist principally of (i) Bergdorf Goodman, Inc., through which we conduct the operations of our Bergdorf Goodman stores, (ii) NM Nevada
Trust, which holds legal title to certain real property and intangible assets used by NMG in conducting its operations and (iii) NMG Germany GmbH, through
which we conduct the operations of MyTheresa.
The following condensed consolidating financial information represents the financial information of the Company and its non-guarantor
subsidiaries under the 2028 Debentures, prepared on the equity basis of accounting. The information is presented in accordance with the requirements of
Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial
position had the non-guarantor subsidiaries operated as independent entities.
F-41