Neiman Marcus 2006 Annual Report Download - page 121

NOTE 8. ACCRUED LIABILITIES
The significant components of accrued liabilities are as follows:
(Successor)
July 28,
2007
July 29,
2006
Accrued salaries and related liabilities $ 79,021 $ 65,803
Amounts due customers 51,750 49,968
Self-insurance reserves 44,544 45,505
Sales returns reserves 48,819 43,742
Interest payable 35,146 40,337
Income taxes payable 30,052 32,745
Sales tax 23,429 21,556
Loyalty program liability 20,477 18,127
Other 69,924 60,185
Total $ 403,162 $ 377,968
NOTE 9. LONG-TERM DEBT
The significant components of our long-term debt are as follows:
(Successor)
(in thousands) Interest Rate
July 28,
2007
July 29,
2006
Senior Secured Term Loan Facility variable $ 1,625,000 $ 1,875,000
2028 Debentures 7.125% 120,906 120,711
Senior Notes 9.0%/9.75% 700,000 700,000
Senior Subordinated Notes 10.375% 500,000 500,000
Long-term debt $ 2,945,906 $ 3,195,711
Senior Secured Asset-Based Revolving Credit Facility. On October 6, 2005, in connection with the Transactions, NMG
entered into a credit agreement and related security and other agreements for a senior secured Asset-Based Revolving Credit Facility with
Deutsche Bank Trust Company Americas as administrative agent and collateral agent. The Asset-Based Revolving Credit Facility
provides financing of up to $600.0 million, subject to a borrowing base equal to at any time the lesser of 80% of eligible inventory
(valued at the lower of cost or market value) and 85% of net orderly liquidation value of the eligible inventory, less certain reserves. The
Asset-Based Revolving Credit Facility includes borrowing capacity available for letters of credit and for borrowings on same-day notice.
At the closing of the Transactions, NMG utilized $150.0 million of the Asset-Based Revolving Credit Facility for loans and
approximately $16.5 million for letters of credit. In the second quarter of fiscal year 2006, NMG repaid all loans under the Asset-Based
Revolving Credit Facility.
As of July 28, 2007, NMG had $573.1 million of unused borrowing availability under the Asset-Based Revolving Credit Facility
based on a borrowing base of over $600.0 million and after giving effect to $26.9 million used for letters of credit.
The Asset-Based Revolving Credit Facility provides that NMG has the right at any time to request up to $200.0 million of
additional commitments, but the lenders are under no obligation to provide any such additional commitments, and any increase in
commitments will be subject to customary conditions precedent. If NMG were to request any such additional commitments and the
existing lenders or new lenders were to agree to provide such commitments, the Asset-Based Revolving Credit Facility size could be
increased to up to $800.0 million, but NMG's ability to borrow would still be limited by the amount of the borrowing base.
Borrowings under the Asset-Based Revolving Credit Facility bear interest at a rate per annum equal to, at NMG's option, either
(a) a base rate determined by reference to the higher of (1) the prime rate of Deutsche Bank Trust Company Americas and (2) the federal
funds effective rate plus 1¤2 of 1% or (b) a LIBOR rate, subject to certain adjustments, in each case
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