Neiman Marcus 2003 Annual Report Download - page 65

The Company's Pension Plan and SERP Plan obligations and funded status of such plans are recognized in the Company's
consolidated balance sheets as follows:
Pension Plan SERP Plan
(in thousands) 2004 2003 2004 2003
Prepaid asset (accrued obligation) $ 45,554 $ (24,790) $ (56,209) $ (49,082)
Intangible asset — 562 3,172 3,934
Other comprehensive loss –
additional minimum liability — 38,758 7,661 4,729
Net prepaid (accrued) benefit
obligation in the consolidated
balance sheet $ 45,554 $ 14,530 $ (45,376)$ (40,419)
In 2003, the Company was required to record additional minimum liabilities of $39.3 million related to the Pension Plan and $8.7
million related to the SERP Plan. In recording the additional minimum liabilities, the Company reduced shareholders' equity by $43.5
million ($26.7 million, net of tax).
In 2004, the fair value of the assets held by the Pension Plan exceeded the accumulated benefit obligation. As a result, the previously
recorded additional minimum liability was reversed and shareholders' equity increased by $38.8 million ($23.8 million, net of tax).
The additional minimum liability for the SERP Plan increased by $2.2 million and reduced shareholders' equity by $1.8 million, net of
tax.
The projected benefit obligation of the Pension Plan exceeded the plan's assets by $38.3 million in 2004 and by $62.0 million in 2003.
The underfunded status is reflected in the Company's consolidated balance sheet as follows:
2004 2003
Prepaid pension contribution reflected in the consolidated balance sheet and not
yet charged to expense $ 45,554 $ 14,530
Liability charged to shareholders' equity and not yet recognized in expense — (38,758)
Liability reflected in other assets and not yet charged to expense — (562)
Unrecognized liability not yet recognized in expense (83,880)(37,163)
Underfunded status $ (38,326)$ (61,953)
The unrecognized liability of $83.9 million for the Pension Plan at July 31, 2004 relates primarily to the delayed recognition of
differences between the Company's actuarial assumptions and actual results. In addition, the Company had cumulative unrecognized
liabilities for the SERP Plan and Postretirement Plan aggregating $23.6 million at July 31, 2004.
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