Neiman Marcus 2006 Annual Report Download - page 131

Significant components of our net deferred income tax asset (liability) are as follows:
(in thousands)
July 28,
2007
July 29,
2006
Deferred income tax assets:
Accruals and reserves $ 29,202 $ 33,560
Employee benefits 86,842 92,461
Other 11,174 2,043
Total deferred tax assets $ 127,218 $ 128,064
Deferred income tax liabilities:
Inventory $ (10,215 ) $ (11,032 )
Depreciation and amortization (83,820 ) (115,825 )
Intangible assets (990,745 ) (1,012,833 )
Other (5,692 )(4,096 )
Total deferred tax liabilities (1,090,472 )(1,143,786 )
Net deferred income tax asset (liability) $ (963,254 )$ (1,015,722 )
Net deferred income tax asset (liability):
Current $ 39,728 $ 33,409
Non-current (1,002,982 )(1,049,131 )
Total $ (963,254 )$ (1,015,722 )
The net deferred tax liability of $963.3 million at July 28, 2007 decreased from a $1,015.7 million net deferred liability at July
29, 2006. This decrease was comprised primarily of 1) a $60.5 million deferred tax benefit for fiscal year 2007 (including $36.7 million
related to the amortization of intangible assets recorded in connection with the Acquisition), partially offset by 2) an increase in deferred
tax liabilities of $11.3 million related primarily to increases in long-term benefit obligations recorded, net of tax, as increases in other
comprehensive income in the accompanying statements of shareholders' equity. We believe it is more likely than not that we will realize
the benefits of our recorded deferred tax assets.
NOTE 13. EMPLOYEE BENEFIT PLANS
Description of Benefit Plans. We sponsor a defined benefit pension plan (Pension Plan) covering substantially all full-time
employees. We also sponsor an unfunded supplemental executive retirement plan (SERP Plan) which provides certain employees
additional pension benefits. Benefits under both plans are based on the employees' years of service and compensation over defined
periods of employment.
Retirees and active employees hired prior to March 1, 1989 are eligible for certain limited postretirement health care benefits
(Postretirement Plan) if they meet certain service and minimum age requirements. The cost of these benefits is accrued during the years in
which an employee provides services.
We have a qualified defined contribution 401(k) plan, which covers substantially all employees. Employees make contributions
to the plan and we match an employee's contribution up to a maximum of 6% of the employee's compensation subject to statutory
limitations. We also sponsor an unfunded key employee deferred compensation plan, which provides certain employees additional
benefits. Our aggregate expense related to these plans was approximately $11.0 million in fiscal year 2007, $8.7 million for the forty-
three weeks ended July 29, 2006, $1.8 million for the nine weeks ended October 1, 2005 and $10.1 million for fiscal year 2005.
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