Neiman Marcus 2014 Annual Report Download - page 52

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Table of Contents

The following table summarizes our estimated significant contractual cash obligations at August 1, 2015:















Contractual obligations:
Asset-Based Revolving Credit Facility
$ 130.0
$ —
$ —
$ 130.0
$ —
Senior Secured Term Loan Facility (1)
2,898.6
29.4
58.9
58.9
2,751.4
Cash Pay Notes
960.0
—
—
—
960.0
PIK Toggle Notes
600.0
—
—
—
600.0
2028 Debentures
125.0
—
—
—
125.0
Interest requirements (2)
1,688.2
263.2
557.8
599.0
268.2
Lease obligations
2,114.8
81.2
156.9
140.1
1,736.6
Minimum pension funding obligation (3)
189.6
—
32.4
56.6
100.6
Other long-term liabilities (4)
126.0
34.6
37.9
15.0
38.5
Inventory purchase and construction commitments
(5)
1,739.1
1,472.1
211.0
56.0
—
$ 10,571.2
$ 1,880.5
$ 1,054.9
$ 1,055.6
$ 6,580.3
(1) The above table does not reflect voluntary prepayments or future excess cash flow prepayments, if any, that may be required under the Senior
Secured Term Loan Facility.
(2) The cash obligations for interest requirements reflect (a) interest requirements on our fixed-rate debt obligations at their contractual rates, with
interest paid entirely in cash with respect to the PIK Toggle Notes, and (b) interest requirements on floating rate debt obligations at rates in effect at
August 1, 2015. Borrowings pursuant to the Senior Secured Term Loan Facility bear interest at floating rates, primarily based on LIBOR, but in no
event less than a floor rate of 1.00%, plus applicable margins. As a consequence of the LIBOR floor rate, we estimate that a 1% increase in LIBOR
would not significantly impact our annual interest requirements during fiscal year 2016.
(3) At August 1, 2015 (the most recent measurement date), our actuarially calculated projected benefit obligation for our Pension Plan was $612.8
million and the fair value of the assets was $394.2 million resulting in a net liability of $218.6 million, which is included in other long-term
liabilities at August 1, 2015. Our policy is to fund our Pension Plan at or above the minimum amount required by law. We made no voluntary
contributions to the Pension Plan in fiscal years 2015 or 2014. As of August 1, 2015, we do not believe we will be required to make contributions to
the Pension Plan for fiscal year 2016. The amounts and timing of our contributions to our Pension Plan are subject to a number of uncertainties
including interest rate fluctuations and the investment performance of the assets held by the Pension Plan. We do not believe these uncertainties will
have a material impact on our future liquidity. See Note 11 of the Notes to Consolidated Financial Statements in Item 15, which contains a further
description of our Pension Plan.
(4) Included in other long-term liabilities at August 1, 2015 are our (a) liabilities for our SERP and Postretirement Plans aggregating $113.6 million and
(b) contingent earn-out obligation of $51.3 million related to the acquisition of MyTheresa. Our scheduled obligations with respect to our SERP
Plan and Postretirement Plan liabilities consist of expected benefit payments through 2025, as currently estimated using information provided by
our actuaries. Our scheduled obligations with respect to our contingent earn-out obligation are based on contractual payment dates. In addition,
other long-term liabilities at August 1, 2015 included our liabilities related to (i) uncertain tax positions (including related accruals for interest and
penalties) of $6.7 million and (ii) other obligations aggregating $35.8 million, primarily for employee benefits. Future cash obligations related to
these liabilities are not currently estimable.
(5) Construction commitments relate primarily to obligations pursuant to contracts for the construction of new stores and the remodels of existing stores
expected as of August 1, 2015. These amounts represent the gross construction costs and exclude developer contributions of approximately $131.1
million, which we expect to receive pursuant to the terms of the construction contracts.
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