Neiman Marcus 2010 Annual Report Download - page 112
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Table of Contents
NOTE 4. IMPAIRMENT OF LONG-LIVED ASSETS
We assess the recoverability of indefinite-lived assets and goodwill in the fourth quarter of each year and upon the
occurrence of certain events. In connection with the preparation of our consolidated financial statements for the second quarter of
fiscal year 2009, we concluded that it was appropriate to test our long-lived assets for recoverability in light of the significant declines
in the domestic and global financial markets during the first and second quarters of fiscal year 2009. Utilizing our then-current
operating forecasts to estimate the fair values of our Neiman Marcus stores, Bergdorf Goodman stores and Direct Marketing
operation, we determined certain of our property and equipment, tradenames and goodwill to be impaired and recorded impairment
charges in the second quarter of fiscal year 2009 aggregating $560.1 million.
In the fourth quarter of fiscal year 2009, we updated our short-term and long-term operating forecasts in connection with our
annual planning process in light of our updated expectations of future business conditions and trends. Utilizing these updated
operating forecasts to estimate the fair values of our reporting units, we determined further impairment with respect to certain of our
property and equipment, tradenames and goodwill and recorded additional impairment charges in the fourth quarter of fiscal year 2009
aggregating $143.1 million.
Total impairment charges recorded in fiscal year 2009 are as follows:
(in thousands)
Specialty
Retail Stores
Direct
Marketing Total
Property and equipment $ 30,348 $ — $ 30,348
Tradenames 311,835 31,374 343,209
Goodwill 329,709 — 329,709
$ 671,892 $ 31,374 $ 703,266
NOTE 5. ACCRUED LIABILITIES
The significant components of accrued liabilities are as follows:
(in thousands)
July 30,
2011
July 31,
2010
Accrued salaries and related liabilities $ 69,352 $ 68,845
Amounts due customers 111,263 100,855
Self-insurance reserves 34,969 36,041
Interest payable 31,813 32,081
Sales returns reserves 28,558 25,167
Sales taxes 21,733 21,408
Other 73,201 77,059
Total $ 370,889 $ 361,456
NOTE 6. LONG-TERM DEBT
The significant components of our long-term debt are as follows:
(in thousands) Interest Rate
July 30,
2011
July 31,
2010
Senior Secured Term Loan Facility variable $ 2,060,000 $ 1,513,383
2028 Debentures 7.125% 121,687 121,492
Senior Notes 9.0%/9.75% — 752,445
Senior Subordinated Notes 10.375% 500,000 500,000
Total debt 2,681,687 2,887,320
Less: current portion of Senior Secured Term
Loan Facility — (7,648)
Long-term debt $ 2,681,687 $ 2,879,672
F-16