Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jan. 27, 2018 | Mar. 09, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | Neiman Marcus Group LTD LLC | |
Entity Central Index Key | 1,358,651 | |
Current Fiscal Year End Date | --07-28 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | No | |
Document Type | 10-Q | |
Document Period End Date | Jan. 27, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 |
Current assets: | |||
Cash and cash equivalents | $ 35,788 | $ 49,239 | $ 48,443 |
Credit card receivables | 42,258 | 38,836 | 37,437 |
Merchandise inventories | 1,137,178 | 1,153,657 | 1,213,483 |
Other current assets | 143,452 | 146,439 | 130,249 |
Total current assets | 1,358,676 | 1,388,171 | 1,429,612 |
Property and equipment, net | 1,557,112 | 1,586,961 | 1,600,816 |
Intangible assets, net | 2,786,041 | 2,831,416 | 3,036,228 |
Goodwill | 1,887,729 | 1,880,894 | 2,067,449 |
Other long-term assets | 37,377 | 16,074 | 22,480 |
Total assets | 7,626,935 | 7,703,516 | 8,156,585 |
Current liabilities: | |||
Accounts payable | 283,805 | 316,830 | 384,148 |
Accrued liabilities | 532,081 | 456,937 | 509,629 |
Current portion of long-term debt | 29,426 | 29,426 | 29,426 |
Total current liabilities | 845,312 | 803,193 | 923,203 |
Long-term liabilities: | |||
Long-term debt, net of debt issuance costs | 4,572,262 | 4,675,540 | 4,585,911 |
Deferred income taxes | 762,840 | 1,156,833 | 1,211,788 |
Other long-term liabilities | 607,507 | 601,298 | 625,872 |
Total long-term liabilities | 5,942,609 | 6,433,671 | 6,423,571 |
Membership unit (1 unit issued and outstanding at January 27, 2018, July 29, 2017 and January 28, 2017) | 0 | 0 | 0 |
Member capital | 1,588,081 | 1,587,086 | 1,586,838 |
Accumulated other comprehensive loss | (38,379) | (63,431) | (111,201) |
Accumulated deficit | (710,688) | (1,057,003) | (665,826) |
Total member equity | 839,014 | 466,652 | 809,811 |
Total liabilities and member equity | $ 7,626,935 | $ 7,703,516 | $ 8,156,585 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - shares | Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 |
Statement of Financial Position [Abstract] | |||
Membership units issued (shares) | 1 | 1 | 1 |
Membership units outstanding (shares) | 1 | 1 | 1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 27, 2018 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,482,118 | $ 1,395,576 | $ 2,602,417 | $ 2,474,683 |
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 1,024,056 | 982,465 | 1,746,943 | 1,682,360 |
Selling, general and administrative expenses (excluding depreciation) | 322,359 | 307,718 | 617,639 | 584,314 |
Income from credit card program | (14,065) | (16,750) | (25,929) | (30,418) |
Depreciation expense | 53,428 | 57,213 | 108,656 | 114,097 |
Amortization of intangible assets | 11,500 | 12,881 | 23,664 | 26,504 |
Amortization of favorable lease commitments | 12,784 | 13,443 | 25,569 | 27,097 |
Other expenses | 12,614 | 5,211 | 15,454 | 12,029 |
Impairment charges | 0 | 153,772 | 0 | 153,772 |
Operating earnings (loss) | 59,442 | (120,377) | 90,421 | (95,072) |
Interest expense, net | 76,549 | 74,197 | 152,647 | 146,280 |
Loss before income taxes | (17,107) | (194,574) | (62,226) | (241,352) |
Income tax benefit | (389,639) | (77,505) | (408,541) | (100,770) |
Net earnings (loss) | $ 372,532 | $ (117,069) | $ 346,315 | $ (140,582) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS LOSS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 27, 2018 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 372,532 | $ (117,069) | $ 346,315 | $ (140,582) |
Other comprehensive earnings: | ||||
Foreign currency translation adjustments, before tax | 4,549 | (12,815) | 13,156 | (9,046) |
Change in unrealized gain on financial instruments, before tax | 13,761 | 18,074 | 18,910 | 21,340 |
Reclassification of realized loss on financial instruments to earnings, before tax | 1,033 | 1,527 | 2,272 | 2,118 |
Change in unrealized loss on unfunded benefit obligations, before tax | (10) | 539 | 582 | (5,828) |
Tax effect related to items of other comprehensive earnings (loss) | (4,678) | (3,655) | (9,868) | (3,944) |
Total other comprehensive earnings | 14,655 | 3,670 | 25,052 | 4,640 |
Total comprehensive earnings (loss) | $ 387,187 | $ (113,399) | $ 371,367 | $ (135,942) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 27, 2018 | Jan. 28, 2017 | |
CASH FLOWS—OPERATING ACTIVITIES | ||
Net earnings (loss) | $ 346,315 | $ (140,582) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation and amortization expense | 170,127 | 179,962 |
Impairment charges | 0 | 153,772 |
Deferred income taxes | (402,981) | (89,374) |
Payment-in-kind interest | 29,289 | 0 |
Other | (806) | 2,338 |
Net cash used for operating activities before changes in operating assets and liabilities | 141,944 | 106,116 |
Changes in operating assets and liabilities: | ||
Merchandise inventories | 21,624 | (72,050) |
Other current assets | (6,127) | (20,282) |
Accounts payable and accrued liabilities | 35,674 | 73,637 |
Deferred real estate credits | 11,729 | 32,502 |
Funding of defined benefit pension plan | (9,300) | (2,500) |
Net cash provided by operating activities | 195,544 | 117,423 |
CASH FLOWS - INVESTING ACTIVITIES | ||
Capital expenditures | (65,796) | (115,698) |
Net cash used for investing activities | (65,796) | (115,698) |
CASH FLOWS - FINANCING ACTIVITIES | ||
Borrowings under revolving credit facilities | 450,163 | 385,000 |
Repayment of borrowings under revolving credit facilities | (578,569) | (380,000) |
Repayment of borrowings under senior secured term loan facility | (14,713) | (14,713) |
Debt issuance costs paid | 0 | (5,359) |
Repurchase of stock | (266) | 0 |
Shares withheld for remittance of employee taxes | (332) | 0 |
Net cash used for financing activities | (143,717) | (15,072) |
Effect of exchange rate changes on cash and cash equivalents | 518 | (53) |
CASH AND CASH EQUIVALENTS | ||
Increase (decrease) during the period | (13,451) | (13,400) |
Beginning balance | 49,239 | 61,843 |
Ending balance | 35,788 | 48,443 |
Cash paid (received) during the period for: | ||
Interest | 115,137 | 145,663 |
Income taxes | (3,458) | (1,748) |
Non-cash - investing and financing activities: | ||
Property and equipment acquired through developer financing obligations | 4,277 | 28,432 |
Issuance of PIK Toggle Notes | $ 28,500 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jan. 27, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Neiman Marcus Group LTD LLC (the "Company") is a luxury omni-channel retailer conducting store and online operations principally under the Neiman Marcus, Bergdorf Goodman, Last Call and MyTheresa brand names. References to “we,” “our” and “us” are used to refer to the Company or collectively to the Company and its subsidiaries, as appropriate to the context. The Company is a subsidiary of Mariposa Intermediate Holdings LLC ("Holdings"), which in turn is a subsidiary of Neiman Marcus Group, Inc., a Delaware corporation ("Parent"). Parent is owned by entities affiliated with Ares Management, L.P. and Canada Pension Plan Investment Board (together, the "Sponsors") and certain co-investors. The Sponsors acquired the Company on October 25, 2013 (the "Acquisition"). The Company's operations are conducted through its direct wholly owned subsidiary, The Neiman Marcus Group LLC ("NMG"). In October 2014, we acquired MyTheresa, a luxury retailer headquartered in Munich, Germany. The operations of MyTheresa are conducted primarily through the mytheresa.com website. The accompanying Condensed Consolidated Financial Statements set forth financial information of the Company and its subsidiaries on a consolidated basis. All significant intercompany accounts and transactions have been eliminated. Our fiscal year ends on the Saturday closest to July 31. Like many other retailers, we follow a 4-5-4 reporting calendar, which means that each fiscal quarter consists of thirteen weeks divided into periods of four weeks, five weeks and four weeks. All references to (i) the second quarter of fiscal year 2018 relate to the thirteen weeks ended January 27, 2018 , (ii) the second quarter of fiscal year 2017 relate to the thirteen weeks ended January 28, 2017 , (iii) year-to-date fiscal 2018 relate to the twenty-six weeks ended January 27, 2018 and (iv) year-to-date fiscal 2017 relate to the twenty-six weeks ended January 28, 2017 . We have prepared the accompanying Condensed Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and Rule 10-01 of Regulation S-X of the Securities Act of 1933, as amended. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended July 29, 2017 . In our opinion, the accompanying Condensed Consolidated Financial Statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly our financial position, results of operations and cash flows for the applicable interim periods. The luxury retail industry is seasonal in nature, with higher sales typically generated in the fall and holiday selling seasons. Due to seasonal and other factors, the results of operations for the second quarter of fiscal year 2018 are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year as a whole. A detailed description of our critical accounting policies is included in our Annual Report on Form 10-K for the fiscal year ended July 29, 2017 . Use of Estimates. We are required to make estimates and assumptions about future events in preparing our financial statements in conformity with GAAP. These estimates and assumptions affect the amounts of assets, liabilities, revenues and expenses and the disclosure of gain and loss contingencies at the date of the accompanying Condensed Consolidated Financial Statements. While we believe that our past estimates and assumptions have been materially accurate, the amounts currently estimated are subject to change if different assumptions as to the outcome of future events were made. We evaluate our estimates and assumptions on an ongoing basis and predicate those estimates and assumptions on historical experience and on various other factors that we believe are reasonable under the circumstances. We make adjustments to our estimates and assumptions when facts and circumstances dictate. Since future events and their effects cannot be determined with absolute certainty, actual results may differ from the estimates and assumptions used in preparing the accompanying Condensed Consolidated Financial Statements. We believe the following critical accounting policies, among others, encompass the more significant estimates, assumptions and judgments used in the preparation of the accompanying Condensed Consolidated Financial Statements: • recognition of revenues; • valuation of merchandise inventories, including determination of original retail values, recognition of markdowns and vendor allowances, estimation of inventory shrinkage and determination of cost of goods sold; • determination of impairment of intangible and long-lived assets; • measurement of liabilities related to our loyalty program; • recognition of income taxes; and • measurement of accruals for general liability, workers’ compensation and health insurance claims and pension and postretirement health care benefits. Segments. We conduct our specialty retail store and online operations on an omni-channel basis. As our store and online operations have similar economic characteristics, products, services and customers, our operations constitute a single omni-channel reportable segment. Newly Adopted Accounting Pronouncements. In March 2016, the Financial Accounting Standards Board ("the FASB") issued guidance to simplify how share-based payments are accounted for and presented in the financial statements, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard allows (i) entities to withhold an amount up to the employees' maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award and (ii) forfeitures to be either estimated, as required currently, or recognized when they occur. We adopted this guidance in the first quarter of fiscal year 2018. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements. Recent Accounting Pronouncements. In May 2014, the FASB issued guidance to clarify the principles for revenue recognition. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes previous revenue recognition guidance. While our evaluation of the impact of adopting this standard is ongoing, we believe the new guidance will impact our accounting for sales returns, our loyalty program and certain promotional programs. We intend to adopt this new guidance no earlier than the first quarter of fiscal year 2019. We are currently evaluating which application method to adopt. In May 2017, the FASB issued guidance to clarify which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard requires modification accounting only if changes in the terms or conditions result in changes of the fair value, the vesting conditions or the classification of the award as an equity instrument or a liability. This new guidance is effective for us as of the first quarter of fiscal year 2019 and will be applicable to any modification transactions subsequent to the effective date. In February 2016, the FASB issued guidance that requires a lessee to recognize assets and liabilities arising from leases on the balance sheet. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. Previous GAAP did not require lease assets and liabilities to be recognized for operating leases. Additionally, companies are permitted to make an accounting policy election not to recognize lease assets and liabilities for leases with a term of 12 months or less. For both finance leases and operating leases, the lease liability should be initially measured at the present value of the remaining contractual lease payments. We do not expect the recognition, measurement and presentation of expenses and cash flows arising from our operating leases to significantly change under this new guidance. This new guidance is effective for us as of the first quarter of fiscal year 2020. While we expect adoption to lead to a material increase in the assets and liabilities recorded on our Condensed Consolidated Balance Sheets and an increase to our footnote disclosures related to leases, we are still evaluating the impact on our Condensed Consolidated Statements of Operations. In August 2017, the FASB issued guidance to simplify how hedge accounting arrangements are accounted for and presented in the financial statements, including the assessment of hedge effectiveness. Under the new standard, all changes in the fair value of cash flow hedges included in the assessment of effectiveness will be recorded in other comprehensive income and reclassified to earnings in the same income statement line item when the hedged item affects earnings. This new guidance is effective for us as of the first quarter of fiscal year 2020. We are currently evaluating the impact of adopting this new accounting guidance on our Condensed Consolidated Financial Statements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jan. 27, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Certain of our assets and liabilities are required to be measured at fair value on a recurring basis. Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. Assets and liabilities are classified using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows: • Level 1 — Unadjusted quoted prices for identical instruments traded in active markets. • Level 2 — Observable market-based inputs or unobservable inputs corroborated by market data. • Level 3 — Unobservable inputs reflecting management’s estimates and assumptions. The following table shows the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis in our Condensed Consolidated Balance Sheets: (in thousands) Fair Value Hierarchy January 27, July 29, January 28, Assets: Interest rate swaps (included in other long-term assets) Level 2 $ 25,996 $ 3,628 $ 8,960 Liabilities: Contingent earn-out obligation (included in accrued liabilities) Level 3 — — 24,520 Stock-based award liability (included in other long-term liabilities) Level 3 5,643 1,344 3,269 The fair value of the interest rate swaps is estimated using industry standard valuation models using market-based observable inputs, including interest rate curves. The fair value of the contingent earn-out obligation incurred in connection with the acquisition of MyTheresa was estimated as of the acquisition date using a valuation model that measured the present value of the probable cash payments based upon the forecasted operating performance of MyTheresa and a discount rate that captured the risk associated with the obligation. We updated our assumptions based on new developments and adjusted the carrying value of the obligation to its estimated fair value at each reporting date. In March 2017, we paid $26.9 million , or €25.5 million , to the sellers related to calendar year 2016 (of which $22.9 million , or €18.1 million , represented the acquisition date fair value of the obligation). The Company has no further earn-out obligations. Because Parent is privately held and there is no public market for its common stock, the fair market value of Parent's common stock is determined by the Board of Directors of Parent (the "Parent Board") or the Compensation Committee, as applicable. In determining the fair market value of Parent's common stock, the Parent Board or the Compensation Committee, as applicable, considers such factors as any recent transactions involving Parent's common stock, the Company’s actual and projected financial results, the principal amount of the Company’s indebtedness, valuations of the Company performed by third parties and other factors it believes are material to the valuation process. Significant inputs to the common stock valuation model are updated as applicable and the carrying value of the obligation is adjusted to its estimated fair value at each reporting date. The carrying values of cash and cash equivalents, credit card receivables and accounts payable approximate fair value due to their short-term nature. We determine the fair value of our long-term debt on a non-recurring basis, which results are summarized as follows: January 27, 2018 July 29, 2017 January 28, 2017 (in thousands) Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Long-term debt: Asset-Based Revolving Credit Facility Level 2 $ 132,000 $ 132,000 $ 263,000 $ 263,000 $ 170,000 $ 170,000 mytheresa.com Credit Facilities Level 2 2,593 2,593 — — — — Senior Secured Term Loan Facility Level 2 2,824,920 2,395,899 2,839,633 2,113,766 2,854,346 2,392,313 Cash Pay Notes Level 2 960,000 613,565 960,000 532,253 960,000 625,680 PIK Toggle Notes Level 2 628,500 373,958 600,000 297,000 600,000 367,500 2028 Debentures Level 2 122,783 90,831 122,677 87,490 122,570 103,985 We estimated the fair value of long-term debt using (i) prevailing market rates for debt of similar remaining maturities and credit risk for the senior secured asset-based revolving credit facility (as amended, the "Asset-Based Revolving Credit Facility") and the senior secured term loan facility (as amended, the "Senior Secured Term Loan Facility" and, together with the Asset-Based Revolving Credit Facility, the "Senior Secured Credit Facilities") and (ii) quoted market prices of the same or similar issues for the $960.0 million aggregate principal amount of 8.00% Senior Cash Pay Notes due 2021 (the "Cash Pay Notes"), the $628.5 million aggregate principal amount of 8.75% / 9.50% Senior PIK Toggle Notes due 2021 (the "PIK Toggle Notes") and the $125.0 million aggregate principal amount of 7.125% Debentures due 2028 (the "2028 Debentures" and, together with the Cash Pay Notes and the PIK Toggle Notes, the "Notes"). In connection with purchase accounting, we adjusted the carrying values of our long-lived and intangible assets to their estimated fair values at the acquisition date. The fair value estimates were based upon assumptions related to the future cash flows, discount rates and asset lives utilizing currently available information, and in some cases, valuation results from independent valuation specialists (Level 3 determination of fair value). Subsequent to the Acquisition, we determine the fair value of our long-lived and intangible assets on a non-recurring basis in connection with our periodic evaluations of such assets for potential impairment and record impairment charges when such fair value estimates are lower than the carrying values of the assets. |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 6 Months Ended |
Jan. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net and Goodwill | Intangible Assets, Net and Goodwill (in thousands) January 27, July 29, January 28, Favorable lease commitments, net $ 905,016 $ 930,585 $ 956,959 Other definite-lived intangible assets, net 377,652 401,081 424,975 Tradenames 1,503,373 1,499,750 1,654,294 Intangible assets, net $ 2,786,041 $ 2,831,416 $ 3,036,228 Goodwill $ 1,887,729 $ 1,880,894 $ 2,067,449 Intangible Assets Subject to Amortization. Favorable lease commitments are amortized straight-line over the remaining lives of the leases, ranging from five to 55 years (weighted average life of 30 years) from the Acquisition date. Our definite-lived intangible assets, which primarily consist of customer lists, are amortized using accelerated methods which reflect the pattern in which we receive the economic benefit of the asset, currently estimated at six to 16 years (weighted average life of 13 years) from the respective acquisition dates. Total amortization of all intangible assets recorded in connection with acquisitions for the current and next five fiscal years is currently estimated as follows (in thousands): January 28, 2018 through July 28, 2018 $ 48,511 2019 95,003 2020 88,306 2021 82,301 2022 82,450 2023 81,305 At January 27, 2018 , accumulated amortization was $226.0 million for favorable lease commitments and $323.8 million for other definite-lived intangible assets. Indefinite-lived Intangible Assets and Goodwill. Indefinite-lived intangible assets, such as our Neiman Marcus, Bergdorf Goodman and MyTheresa tradenames and goodwill, are not subject to amortization. Rather, we assess the recoverability of indefinite-lived intangible assets and goodwill annually in the fourth quarter of each fiscal year and upon the occurrence of certain events. These impairment assessments are performed for each of our three reporting units — Neiman Marcus, Bergdorf Goodman and MyTheresa. |
Impairment Charges
Impairment Charges | 6 Months Ended |
Jan. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment Charges | Impairment Charges We recorded impairment charges aggregating $510.7 million in fiscal year 2017 ( $153.8 million in the second quarter and $357.0 million in the fourth quarter). These impairment charges were driven both by (i) changes in market conditions related to increases in the weighted average cost of capital and valuation multiples and (ii) deterioration of operating trends during such periods. These impairment charges related to certain of our tradenames, goodwill and long-lived assets primarily associated with our Neiman Marcus and Bergdorf Goodman brands. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jan. 27, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt The significant components of our long-term debt are as follows: (in thousands) Interest Rate January 27, July 29, January 28, Asset-Based Revolving Credit Facility variable $ 132,000 $ 263,000 $ 170,000 mytheresa.com Credit Facilities 2.25%/2.39% 2,593 — — Senior Secured Term Loan Facility variable 2,824,920 2,839,633 2,854,346 Cash Pay Notes 8.00% 960,000 960,000 960,000 PIK Toggle Notes 8.75%/9.50% 628,500 600,000 600,000 2028 Debentures 7.125% 122,783 122,677 122,570 Total debt 4,670,796 4,785,310 4,706,916 Less: current portion of Senior Secured Term Loan Facility (29,426 ) (29,426 ) (29,426 ) Less: unamortized debt issuance costs (69,108 ) (80,344 ) (91,579 ) Long-term debt, net of debt issuance costs $ 4,572,262 $ 4,675,540 $ 4,585,911 Asset-Based Revolving Credit Facility . At January 27, 2018 , we have an Asset-Based Revolving Credit Facility with a maximum committed borrowing capacity of $900.0 million . The Asset-Based Revolving Credit Facility matures on July 25, 2021 (or July 25, 2020 if our obligations under our Senior Secured Term Loan Facility or any permitted refinancing thereof have not been repaid or the maturity date thereof has not been extended to October 25, 2021 or later). At January 27, 2018 , we had outstanding borrowings of $132.0 million under this facility, outstanding letters of credit of $1.8 million and unused commitments of $749.7 million , subject to a borrowing base, of which $90.0 million of such capacity is available to us subject to certain restrictions as more fully described below. Availability under the Asset-Based Revolving Credit Facility is subject to a borrowing base. The Asset-Based Revolving Credit Facility includes borrowing capacity available for letters of credit (up to $150.0 million , with any such issuance of letters of credit reducing the amount available under the Asset-Based Revolving Credit Facility on a dollar-for-dollar basis) and for borrowings on same-day notice. The borrowing base is equal to at any time the sum of (a) 90% of the net orderly liquidation value of eligible inventory, net of certain reserves, plus (b) 90% of the amounts owed by credit card processors in respect of eligible credit card accounts constituting proceeds from the sale or disposition of inventory, less certain reserves, plus (c) 100% of segregated cash held in a restricted deposit account. To the extent that excess availability is not equal to or greater than the greater of (a) 10% of the lesser of (1) the aggregate revolving commitments and (2) the borrowing base and (b) $50.0 million , we will be required to maintain a minimum fixed charge coverage ratio. Additional restrictions will apply if this condition is not met for five consecutive business days, including increased reporting requirements and additional administrative agent control rights over certain of our accounts. These restrictions will continue until the condition is satisfied and their imposition may limit our operational flexibility. The Asset-Based Revolving Credit Facility permits us to increase commitments under the Asset-Based Revolving Credit Facility or add one or more incremental term loans to the Asset-Based Revolving Credit Facility by an amount not to exceed $200.0 million . However, the lenders are under no obligation to provide any such additional commitments or loans, and any increase in commitments or incremental term loans will be subject to customary conditions precedent. If we were to request any such additional commitments and the existing lenders or new lenders were to agree to provide such commitments, the size of the Asset-Based Revolving Credit Facility could be increased to $1,100.0 million , but our ability to borrow would still be limited by the amount of the borrowing base. The cash proceeds of any incremental term loans may be used for working capital and general corporate purposes. At January 27, 2018 , borrowings under the Asset-Based Revolving Credit Facility bore interest at a rate per annum equal to, at our option, either (a) a base rate determined by reference to the highest of (1) the prime rate of Deutsche Bank AG New York Branch (the administrative agent), (2) the federal funds effective rate plus ½ of 1.00% and (3) the adjusted one-month LIBOR plus 1.00% or (b) LIBOR , subject to certain adjustments, in each case plus an applicable margin of 0.75% with respect to base rate borrowings and 1.75% with respect to LIBOR borrowings at January 27, 2018 . The applicable margin is based on the average historical excess availability under the Asset-Based Revolving Credit Facility, and is up to 1.00% with respect to base rate borrowings and up to 2.00% with respect to LIBOR borrowings, in each case with one 0.25% step down based on achievement and maintenance of a certain senior secured first lien net leverage ratio (as defined in the credit agreement governing the Asset-Based Revolving Credit Facility). The weighted average interest rate on the outstanding borrowings pursuant to the Asset-Based Revolving Credit Facility was 3.78% at January 27, 2018 . In addition, we are required to pay a commitment fee in respect of unused commitments at a rate of up to 0.375% per annum. We must also pay customary letter of credit fees and agency fees. If at any time the aggregate amount of outstanding revolving loans, unreimbursed letter of credit drawings and undrawn letters of credit under the Asset-Based Revolving Credit Facility exceeds the lesser of (a) the aggregate revolving commitments and (b) the borrowing base, we will be required to repay outstanding loans or cash collateralize letters of credit in an aggregate amount equal to such excess, with no reduction of the commitment amount. If the excess availability under the Asset-Based Revolving Credit Facility is less than the greater of (a) 10% of the lesser of (1) the aggregate revolving commitments and (2) the borrowing base and (b) $50.0 million for a period of five or more consecutive business days, funds held in a collection account maintained with the agent would be applied to repay the loans and other obligations and cash collateralize letters of credit. We would then be required to make daily deposits in the collection account maintained with the agent under the Asset-Based Revolving Credit Facility. We may voluntarily reduce the unutilized portion of the commitment amount and repay outstanding loans at any time without premium or penalty other than customary breakage costs with respect to LIBOR loans. There is no scheduled amortization under the Asset-Based Revolving Credit Facility. The principal amount of the revolving loans outstanding thereunder will be due and payable in full on July 25, 2021 (or July 25, 2020 if our obligations under our Senior Secured Term Loan Facility or any permitted refinancing thereof have not been repaid or the maturity date thereof has not been extended to October 25, 2021 or later). The Asset-Based Revolving Credit Facility is guaranteed by Holdings and each of our current and future direct and indirect wholly owned subsidiaries (subsidiary guarantors) other than (a) unrestricted subsidiaries, (b) certain immaterial subsidiaries, (c) foreign subsidiaries and any domestic subsidiary of a foreign subsidiary, (d) certain holding companies of foreign subsidiaries, (e) captive insurance subsidiaries, not for profit subsidiaries, or a subsidiary which is a special purpose entity for securitization transactions or like special purposes and (f) any subsidiary that is prohibited by applicable law or contractual obligation from acting as a guarantor or which would require governmental approval to provide a guarantee. At January 27, 2018 , the assets of non-guarantor subsidiaries, primarily (i) NMG Germany GmbH, through which we conduct the operations of MyTheresa, (ii) NMG International LLC, a holding company with respect to our foreign operations and (iii) Nancy Holdings LLC, which holds legal title to certain real property used by us in conducting our operations , aggregated $441.7 million , or 5.8% of consolidated total assets. All obligations under the Asset-Based Revolving Credit Facility, and the guarantees of those obligations, are secured, subject to certain significant exceptions by substantially all of the assets of Holdings, the Company and the subsidiary guarantors. The Asset-Based Revolving Credit Facility contains covenants limiting, among other things, dividends and other restricted payments, investments, loans, advances and acquisitions, and prepayments or redemptions of other indebtedness. These covenants permit such restricted actions in an unlimited amount, subject to the satisfaction of certain payment conditions, principally that we must have (x) pro forma excess availability under the Asset-Based Revolving Credit Facility for each day of the 30 -day period prior to such actions, which exceeds the greater of $90.0 million or 15% of the lesser of (a) the revolving commitments under the Asset-Based Revolving Credit Facility and (b) the borrowing base and (y) a pro forma fixed charge coverage ratio of at least 1.0 to 1.0, unless pro forma excess availability for each day of the 30 -day period prior to such actions under the Asset-Based Revolving Credit Facility would exceed the greater of (1) $200.0 million and (2) 25% of the lesser of (i) the aggregate revolving commitments under the Asset-Based Revolving Credit Facility and (ii) the borrowing base. The Asset-Based Revolving Credit Facility also contains customary affirmative covenants and events of default, including a cross-default provision in respect of any other indebtedness that has an aggregate principal amount exceeding $50.0 million . For a more detailed description of the Asset-Based Revolving Credit Facility, refer to Note 8 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended July 29, 2017 . Mytheresa.com Credit Facilities . Our subsidiary mytheresa.com GmbH, through which we operate mytheresa.com, is party to two credit facility agreements (the "mytheresa.com Credit Facilities"). The first facility, entered into October 1, 2015, is a revolving credit line for up to €6.5 million in availability and bears interest at a fixed rate of 2.39% (until further notice) for any loan drawn under the overdraft facility and at rates to be agreed on a case-by-case basis for money market loans and guarantees. The second facility, entered into June 8, 2017, is a revolving credit line for up to €8.5 million in availability and bears interest at a fixed rate of 2.25% (until further notice) for any loan drawn under the overdraft facility and at rates to be agreed on a case-by-case basis for any other loans. Both facilities are secured by certain inventory held by mytheresa.com GmbH and certain contractual claims. The facilities are not guaranteed by, and are non-recourse to, us or any of our U.S. subsidiaries or affiliates. Each facility contains restrictive covenants prohibiting mytheresa.com GmbH from distributing or making available loan proceeds to any affiliates including us or any of our other subsidiaries and requiring mytheresa.com GmbH to maintain a minimum economic equity ratio. The agreements also contain usual and customary events of default, the occurrence of which may result in all outstanding amounts under the facility agreements becoming due and payable immediately. There is no scheduled amortization under either facility and neither facility has a specified maturity date. However, each lender may terminate its respective facility at any time provided that mytheresa.com GmbH is given a customary reasonable opportunity to secure alternative financing. As of January 27, 2018 , mytheresa.com GmbH had outstanding borrowings of $2.6 million , or €2.2 million , guarantees of $1.3 million , or €1.1 million , and unused commitments of $14.1 million , or €11.7 million . Senior Secured Term Loan Facility . We have a credit agreement and related security and other agreements for the $2,950.0 million Senior Secured Term Loan Facility. At January 27, 2018 , the outstanding balance under the Senior Secured Term Loan Facility was $2,824.9 million . The principal amount of the loans outstanding is due and payable in full on October 25, 2020. The Senior Secured Term Loan Facility permits us to increase the term loans or add a separate tranche of term loans by an amount not to exceed $650.0 million plus an unlimited amount that would result (a) in the case of any incremental term loan facility to be secured equally and ratably with the term loans, a senior secured first lien net leverage ratio equal to or less than 4.25 to 1.00, and (b) in the case of any incremental term loan facility to be secured on a junior basis to the term loans, to be subordinated in right of payment to the term loans or unsecured and pari passu in right of payment with the term loans, a total net leverage ratio equal to or less than the total net leverage ratio as of October 25, 2013. At January 27, 2018 , borrowings under the Senior Secured Term Loan Facility bore interest at a rate per annum equal to, at our option, either (a) a base rate determined by reference to the highest of (1) the prime rate of Credit Suisse AG (the administrative agent), (2) the federal funds effective rate plus ½ of 1.00% and (3) the adjusted one-month LIBOR plus 1.00% , or (b) an adjusted LIBOR (for a period equal to the relevant interest period, and in any event, never less than 1.00% ), subject to certain adjustments, in each case plus an applicable margin. The applicable margin is up to 2.25% with respect to base rate borrowings and up to 3.25% with respect to LIBOR borrowings. The applicable margin is subject to adjustment based on our senior secured first lien net leverage ratio. The applicable margin with respect to outstanding LIBOR borrowings was 3.25% at January 27, 2018 . The interest rate on the outstanding borrowings pursuant to the Senior Secured Term Loan Facility was 4.81% at January 27, 2018 . Subject to certain exceptions and reinvestment rights, the Senior Secured Term Loan Facility requires that 100% of the net cash proceeds from certain asset sales and debt issuances and 50% (which percentage will be reduced to 25% if our senior secured first lien net leverage ratio, as defined in the credit agreement governing the Senior Secured Term Loan Facility, is equal to or less than 4.0 to 1.0 but greater than 3.5 to 1.0 and will be reduced to 0% if our senior secured first lien net leverage ratio is equal to or less than 3.5 to 1.0) from excess cash flow, as defined in the credit agreement governing the Senior Secured Term Loan Facility, for each of our fiscal years (commencing with the period ended July 26, 2015) must be used to prepay outstanding term loans under the Senior Secured Term Loan Facility at 100% of the principal amount to be prepaid, plus accrued and unpaid interest. We were not required to prepay any outstanding term loans pursuant to the annual excess cash flow requirements for fiscal year 2017. We may repay all or any portion of the Senior Secured Term Loan Facility at any time, subject to redeployment costs in the case of prepayment of LIBOR borrowings other than the last day of the relevant interest period. The Senior Secured Term Loan Facility amortizes in equal quarterly installments of $7.4 million , less certain voluntary and mandatory prepayments, with the remaining balance due at final maturity. The Senior Secured Term Loan Facility is guaranteed by Holdings and each of our current and future subsidiary guarantors other than (a) unrestricted subsidiaries, (b) certain immaterial subsidiaries, (c) foreign subsidiaries and any domestic subsidiary of a foreign subsidiary, (d) certain holding companies of foreign subsidiaries, (e) captive insurance subsidiaries, not for profit subsidiaries, or a subsidiary which is a special purpose entity for securitization transactions or like special purposes and (f) any subsidiary that is prohibited by applicable law or contractual obligation from acting as a guarantor or which would require governmental approval to provide a guarantee. At January 27, 2018 , the assets of non-guarantor subsidiaries, primarily (i) NMG Germany GmbH, through which we conduct the operations of MyTheresa, (ii) NMG International LLC, a holding company with respect to our foreign operations and (iii) Nancy Holdings LLC, which holds legal title to certain real property used by us in conducting our operations , aggregated $441.7 million , or 5.8% of consolidated total assets. All obligations under the Senior Secured Term Loan Facility, and the guarantees of those obligations, are secured, subject to certain significant exceptions, by substantially all of the assets of Holdings, the Company and the subsidiary guarantors. The credit agreement governing the Senior Secured Term Loan Facility contains a number of negative covenants and covenants related to the security arrangements for the Senior Secured Term Loan Facility. The credit agreement also contains customary affirmative covenants and events of default, including a cross-default provision in respect of any other indebtedness that has an aggregate principal amount exceeding $50.0 million . For a more detailed description of the Senior Secured Term Loan Facility, refer to Note 8 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended July 29, 2017 . Cash Pay Notes . The Company, along with Mariposa Borrower, Inc. as co-issuer, incurred indebtedness in the form of $960.0 million aggregate principal amount of 8.00% Senior Cash Pay Notes due 2021. Interest on the Cash Pay Notes is payable semi-annually in arrears on each April 15 and October 15. The Cash Pay Notes are guaranteed by the same entities that guarantee the Senior Secured Term Loan Facility, other than Holdings. The Cash Pay Notes are unsecured and the guarantees are full and unconditional. At January 27, 2018 , the redemption price at which we may redeem the Cash Pay Notes, in whole or in part, as set forth in the indenture governing the Cash Pay Notes, was 104.000% . The Cash Pay Notes mature on October 15, 2021. For a more detailed description of the Cash Pay Notes, refer to Note 8 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended July 29, 2017 . PIK Toggle Notes . The Company, along with Mariposa Borrower, Inc. as co-issuer, incurred indebtedness in the form of $600.0 million aggregate principal amount of 8.75% / 9.50% Senior PIK Toggle Notes due 2021. At January 27, 2018 , the outstanding balance under the PIK Toggle Notes was $628.5 million . The PIK Toggle Notes are guaranteed by the same entities that guarantee the Senior Secured Term Loan Facility, other than Holdings. The PIK Toggle Notes are unsecured and the guarantees are full and unconditional. At January 27, 2018 , the redemption price at which we may redeem the PIK Toggle Notes, in whole or in part, as set forth in the indenture governing the PIK Toggle Notes, was 104.375% . The PIK Toggle Notes mature on October 15, 2021. Interest on the PIK Toggle Notes is payable semi-annually in arrears on each April 15 and October 15. Interest on the PIK Toggle Notes, subject to certain restrictions, may be paid (i) entirely in cash ("Cash Interest"), (ii) entirely by increasing the principal amount of the PIK Toggle Notes by the relevant interest payment amount ("PIK Interest"), or (iii) 50% in Cash Interest and 50% in PIK Interest. Cash Interest on the PIK Toggle Notes accrues at a rate of 8.75% per annum. PIK Interest on the PIK Toggle Notes accrues at a rate of 9.50% per annum. Interest on the PIK Toggle Notes was paid entirely in cash for the first seven interest payments. We elected to pay the October 2017 and April 2018 interest payments in the form of PIK Interest, which resulted in the issuance of $28.5 million of additional PIK Toggle Notes in October 2017 and will result in the issuance of $29.9 million of additional PIK Toggle Notes in April 2018. We may additionally elect to pay interest in the form of PIK Interest or partial PIK Interest with respect to the interest payment due in October 2018. If we elect to do so, we must deliver a notice of such election to the trustee no later than one day prior to the beginning of the October 2018 interest period. We will evaluate our financial position prior to the October 2018 interest period to determine the appropriate election at that time. For a more detailed description of the PIK Toggle Notes, refer to Note 8 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended July 29, 2017 . 2028 Debentures. NMG has outstanding $125.0 million aggregate principal amount of our 7.125% Senior Debentures due 2028. The 2028 Debentures are secured by a first lien security interest on certain collateral subject to liens granted under the Senior Secured Credit Facilities. The 2028 Debentures are guaranteed on an unsecured, senior basis by the Company. The guarantee is full and unconditional. At January 27, 2018 , our non-guarantor subsidiaries consisted principally of (i) Bergdorf Goodman, Inc., through which we conduct the operations of our Bergdorf Goodman stores, (ii) NM Nevada Trust, which holds legal title to certain real property and intangible assets used by us in conducting our operations, (iii) NMG Germany GmbH, through which we conduct the operations of MyTheresa, (iv) NMG International LLC, a holding company with respect to our foreign operations and (v) Nancy Holdings LLC, which holds legal title to certain real property used by us in conducting our operations. The 2028 Debentures include certain restrictive covenants and a cross-acceleration provision in respect of any other indebtedness that has an aggregate principal amount exceeding $15.0 million . The 2028 Debentures mature on June 1, 2028. For a more detailed description of the 2028 Debentures, refer to Note 8 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended July 29, 2017 . Maturities of Long-term Debt. At January 27, 2018 , annual maturities of long-term debt during the current and next five fiscal years and thereafter are as follows (in millions): January 28, 2018 through July 28, 2018 $ 14.7 2019 29.4 2020 29.4 2021 2,883.4 2022 1,588.5 2023 — Thereafter 125.4 The previous table does not reflect future excess cash flow prepayments, if any, that may be required under the Senior Secured Term Loan Facility. Interest Expense, net. The significant components of interest expense are as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, January 28, January 27, January 28, Asset-Based Revolving Credit Facility $ 1,483 $ 1,366 $ 3,796 $ 2,570 mytheresa.com Credit Facilities 21 28 42 43 Senior Secured Term Loan Facility 33,814 32,815 67,232 64,259 Cash Pay Notes 19,200 19,200 38,400 38,400 PIK Toggle Notes 14,927 13,125 29,289 26,250 2028 Debentures 2,226 2,226 4,453 4,453 Amortization of debt issue costs 6,121 6,121 12,238 12,264 Capitalized interest (1,841 ) (1,529 ) (3,564 ) (3,244 ) Other, net 598 845 761 1,285 Interest expense, net $ 76,549 $ 74,197 $ 152,647 $ 146,280 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jan. 27, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Swaps. At January 27, 2018 , we had outstanding floating rate debt obligations of $2,956.9 million . In April and June of 2016, we entered into floating to fixed interest rate swap agreements for an aggregate notional amount of $1,400.0 million to limit our exposure to interest rate increases related to a portion of our floating rate indebtedness. These swap agreements hedge a portion of our contractual floating rate interest commitments related to our Senior Secured Term Loan Facility from December 2016 to October 2020. As a result of the April 2016 swap agreements, our effective interest rate as to $700.0 million of floating rate indebtedness will be fixed at 4.9120% from December 2016 through October 2020. As a result of the June 2016 swap agreements, our effective interest rate as to an additional $700.0 million of floating rate indebtedness will be fixed at 4.7395% from December 2016 to October 2020. The fair value of our interest rate swap agreements was a gain of $26.0 million at January 27, 2018 , $3.6 million at July 29, 2017 and $9.0 million at January 28, 2017 , which amounts were included in other long-term assets. The interest rate swap agreements expire in October 2020. We designated the interest rate swaps as cash flow hedges. As cash flow hedges, unrealized gains on our outstanding interest rate swaps are recognized as assets while unrealized losses are recognized as liabilities. Our interest rate swap agreements are highly, but not perfectly, correlated to the changes in interest rates to which we are exposed. As a result, unrealized gains and losses on our interest rate swap agreements are designated as effective or ineffective. The effective portion of such gains or losses will be recorded as a component of accumulated other comprehensive loss while the ineffective portion of such gains or losses will be recorded as a component of interest expense. In addition, we realize a gain or loss on our interest rate swap agreements in connection with each required interest payment on our floating rate indebtedness. The realized gains or losses effectively adjust the contractual interest requirements pursuant to the terms of our floating rate indebtedness to the interest requirements at the fixed rates established in the interest rate swap agreements. These realized gains or losses are reclassified to interest expense from accumulated other comprehensive loss. Interest Rate Caps. In April 2014, we entered into interest rate cap agreements (at a cost of $2.0 million ) for an aggregate notional amount of $1,400.0 million to hedge the variability of our cash flows related to a portion of our floating rate indebtedness. The interest rate cap agreements effectively capped LIBOR related to our Senior Secured Term Loan Facility at 3.00% from December 2014 through December 2016 with respect to the $1,400.0 million notional amount of such agreements. The interest rate cap agreements expired in December 2016. Gains and losses realized due to the expiration of applicable portions of the interest rate caps were reclassified to interest expense at the time our quarterly interest payments were made. A summary of the recorded amounts related to our interest rate swaps and interest rate caps reflected in our Condensed Consolidated Statements of Operations is as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, January 28, January 27, January 28, Realized hedging losses related to interest rate swaps – included in net interest expense $ 1,033 $ 694 $ 2,272 $ 694 Realized hedging losses related to interest rate caps – included in net interest expense — 833 — 1,424 Total $ 1,033 $ 1,527 $ 2,272 $ 2,118 The amount of net gains recorded in other comprehensive earnings at January 27, 2018 that is expected to be reclassified into interest expense in the next 12 months, if interest rates remain unchanged, is approximately $4.5 million . |
Income Taxes
Income Taxes | 6 Months Ended |
Jan. 27, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective income tax rates are as follows: Thirteen weeks ended Twenty-six weeks ended January 27, January 28, January 27, January 28, Effective income tax rate excluding impact of Tax Reform 32.3 % 39.8 % 39.2 % 41.8 % Impact of Tax Reform 2,245.4 % — % 617.3 % — % Effective income tax rate 2,277.7 % 39.8 % 656.5 % 41.8 % Included in the income tax benefit recognized in the second quarter of fiscal year 2018 is the impact of the Tax Cuts and Jobs Act ("Tax Reform"), which was signed into law on December 22, 2017. Among numerous provisions included in the Tax Reform was the reduction of the corporate federal income tax rate from 35% to 21% effective January 1, 2018. As the effective date of the Tax Reform falls five months into our fiscal year, we are subject to a blended federal statutory rate of 26.9% in fiscal year 2018. In connection with our application of the new federal statutory rate, we remeasured the long-term deferred income taxes recorded in our Condensed Consolidated Balance Sheet at the new lower rate. We recorded a provisional non-cash benefit of $384.1 million related primarily to the remeasurement of deferred income taxes which amount is included in our income tax benefit in the Condensed Consolidated Statements of Operations for the second quarter of fiscal year 2018 . We recognized the income tax effects of the Tax Reform in our fiscal year 2018 financial statements in accordance with Staff Accounting Bulletin No. 118 ("SAB 118"), which provides the SEC staff guidance for the application of the FASB's Accounting Standards Codification Topic 740, Income Taxes , in the reporting period in which the Tax Reform was signed into law. At January 27, 2018, we calculated the effects of the tax law change, as written, and made reasonable estimates of the effects on our deferred income tax balances. We will continue to refine our estimates as additional information, such as interpretive or regulatory guidance, becomes available on key aspects of the law, including its impact on the deductibility of purchased assets, state taxes and employee compensation. Excluding the impact of the Tax Reform, our effective income tax rate of 32.3% on the loss for the second quarter of fiscal year 2018 exceeded the blended federal statutory rate of 26.9% due primarily to state and foreign income taxes. Our effective income tax rate of 39.8% on the loss for the second quarter of fiscal year 2017 exceeded the previous federal statutory rate of 35% due primarily to state income taxes. Excluding the impact of the Tax Reform, our effective income tax rate of 39.2% on the loss for year-to-date fiscal 2018 exceeded the blended federal statutory rate of 26.9% due primarily to state and foreign income taxes. Our effective income tax rate of 41.8% on the loss for year-to-date fiscal 2017 exceeded the previous federal statutory rate of 35% due primarily to: • state income taxes; • the non-deductible portion of transaction and other costs incurred in connection with the MyTheresa acquisition; and • the benefit associated with the release of certain tax reserves for settled tax matters. At January 27, 2018 , the gross amount of unrecognized tax benefits was $1.3 million ( $1.0 million of which would impact our effective tax rate, if recognized). We classify interest and penalties as a component of income tax expense and our liability for accrued interest and penalties was $0.3 million at January 27, 2018 , $0.4 million at July 29, 2017 and $0.1 million at January 28, 2017 . We file income tax returns in the U.S. federal jurisdiction and various state, local and foreign jurisdictions. The Internal Revenue Service ("IRS") finalized its audits of our fiscal year 2012 and short-year 2013 (prior to the Acquisition) federal income tax returns. With respect to state, local and foreign jurisdictions, with limited exceptions, we are no longer subject to income tax audits for fiscal years before 2013. We believe our recorded tax liabilities as of January 27, 2018 are sufficient to cover any potential assessments made by the IRS or other taxing authorities and we will continue to review our recorded tax liabilities for potential audit assessments based upon subsequent events, new information and future circumstances. We believe it is reasonably possible that adjustments to the amounts of our unrecognized tax benefits could occur within the next 12 months as a result of settlements with tax authorities or expiration of statutes of limitations. At this time, we do not believe such adjustments will have a material impact on our Condensed Consolidated Financial Statements. Subsequent to the Acquisition, Parent and its subsidiaries, including the Company, file U.S. federal income taxes as a consolidated group. The Company has elected to be treated as a corporation for U.S. federal income tax purposes and all operations of Parent are conducted through Holdings and its subsidiaries, including the Company. Income taxes incurred by Parent are reflected by the Company and its subsidiaries in the preparation of our Condensed Consolidated Financial Statements. There are no differences in current and deferred income taxes between the Company and Parent. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jan. 27, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit | Employee Benefits Description of Retirement Benefit Plans. We currently maintain defined contribution plans consisting of a retirement savings plan ("RSP") and a defined contribution supplemental executive retirement plan ("Defined Contribution SERP Plan"). In addition, we sponsor a defined benefit pension plan ("Pension Plan") and an unfunded supplemental executive retirement plan ("SERP Plan") that provides certain employees additional pension benefits. As of the third quarter of fiscal year 2010, benefits offered to all participants in our Pension Plan and SERP Plan were frozen. 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. We also sponsor an unfunded key employee deferred compensation plan, which provides certain employees with additional benefits. Our obligations for employee benefit plans, included in other long-term liabilities, are as follows: (in thousands) January 27, July 29, January 28, Pension Plan $ 230,606 $ 240,737 $ 300,543 SERP Plan 111,093 112,739 119,807 Postretirement Plan 6,388 6,916 8,220 348,087 360,392 428,570 Less: current portion (6,679 ) (7,803 ) (6,553 ) Long-term portion of benefit obligations $ 341,408 $ 352,589 $ 422,017 Funding Policy and Status. Our policy is to fund the Pension Plan at or above the minimum level required by law. As of January 27, 2018 , we believe we will be required to contribute $25.1 million to the Pension Plan in fiscal year 2018 , of which $9.3 million has been funded as of January 27, 2018 . In fiscal year 2017 , we were required to contribute $10.7 million to the Pension Plan. Cost of Benefits. The components of the expenses we incurred under our Pension Plan, SERP Plan and Postretirement Plan are as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, January 28, January 27, January 28, Pension Plan: Interest cost $ 4,973 $ 4,870 $ 9,946 $ 9,740 Expected return on plan assets (5,396 ) (5,331 ) (10,792 ) (10,662 ) Net amortization of losses 170 663 340 1,326 Pension Plan expense (income) $ (253 ) $ 202 $ (506 ) $ 404 SERP Plan: Interest cost $ 844 $ 784 $ 1,688 $ 1,568 Net amortization of losses — 23 — 46 SERP Plan expense $ 844 $ 807 $ 1,688 $ 1,614 Postretirement Plan: Interest cost $ 51 $ 55 $ 102 $ 110 Net amortization of gains (180 ) (146 ) (360 ) (292 ) Postretirement Plan income $ (129 ) $ (91 ) $ (258 ) $ (182 ) Employee Vacation Benefit Liability. Effective in fiscal year 2019, we are changing our vacation policy. Pursuant to the provisions of our new vacation policy, vacation hours earned during each fiscal year must be taken during that fiscal year. Any accrued but unused vacation is forfeited at the end of the fiscal year subject to statutory requirements in certain states precluding such forfeitures. As a result of this policy change, we expect our liability for unused vacation will be reduced by $18 to $20 million , which benefit is being recorded as a non-cash gain in fiscal year 2018 within selling, general and administrative expenses. We recorded non-cash gains of $7.8 million in the second quarter of fiscal year 2018 and $9.0 million in year-to-date fiscal 2018. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 27, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Employment, Consumer and Benefits Class Actions Litigation. In 2007, Bernadette Tanguilig filed a lawsuit in the Superior Court of California for San Francisco County alleging wrongful termination and retaliation arising from her refusal to sign the Company’s mandatory arbitration agreement. Ms. Tanguilig later filed several amendments to her complaint adding claims under the California Labor Code Private Attorneys General Act ("PAGA") and class action allegations of wage and hour violations. She also added Juan Carlos Pinela as an additional plaintiff. In December 2013, the Company filed a motion to dismiss Ms. Tanguilig’s claims based on her failure to bring her claims to trial within five years as required by California law. In February 2014, the Company’s motion was granted and Ms. Tanguilig’s claims were dismissed. Ms. Tanguilig appealed. Briefing is complete, and a judicial panel has been assigned. The parties have requested oral argument, but no date has been set. In October 2011, the court ordered Mr. Pinela (a co-plaintiff in the Tanguilig case) to arbitrate his claims in accordance with the mandatory arbitration agreement. Mr. Pinela filed a demand for arbitration seeking to arbitrate both his individual and class claims, which the Company argued was in violation of the class action waiver in the arbitration agreement. This led to further proceedings in the trial court, a stay of the arbitration, and a decision by the trial court to reconsider and vacate its order compelling arbitration, which the Company appealed. In June 2015, the appellate court upheld the trial court’s denial of the Company’s motion to compel arbitration of Mr. Pinela’s claims. The Company’s petition for rehearing by the appellate court and petition for review by the California Supreme Court were denied, and the case was returned to the trial court. On December 10, 2015, the trial court issued a stay of the case pending the conclusion of the Tanguilig appeal, which remains in effect. We recorded our currently estimable liabilities with respect to Ms. Tanguilig's employment class action litigation claims in fiscal year 2014, which amount was not material to our financial condition or results of operations. We will continue to evaluate the Tanguilig matter, and our recorded reserve for such matter, based on subsequent events, new information and future circumstances. The National Labor Relations Board ("NLRB") has been pursuing a complaint alleging that the Mandatory Arbitration Agreement’s class action prohibition violates employees’ rights to engage in concerted activity. The administrative law judge issued a recommended decision and order finding that the Company's Arbitration Agreement and class action waiver violated the National Labor Relations Act, which were affirmed by the NLRB in August 2015. On August 12, 2015, we filed our petition for review of the NLRB's order with the U.S. Court of Appeals for the Fifth Circuit. This case is stayed while another similar case is pending before the U.S. Supreme Court. On August 7, 2014, a putative class action complaint was filed against The Neiman Marcus Group LLC in Los Angeles County Superior Court by a customer, Linda Rubenstein, in connection with the Company's Last Call stores in California. Ms. Rubenstein alleges that the Company has violated various California consumer protection statutes by implementing a marketing and pricing strategy that suggests that clothing sold at Last Call stores in California was originally offered for sale at full-line Neiman Marcus stores when allegedly, it was not, and that the Company lacks adequate information to support its comparative pricing labels. In September 2014, we removed the case to the U.S. District Court for the Central District of California. After dismissing Ms. Rubenstein’s original and first amended complaint, the court dismissed her second amended complaint in its entirety in May 2015, without leave to amend, and Ms. Rubenstein appealed. In April 2017, the Court of Appeal reversed, holding that Ms. Rubenstein’s allegations were sufficient to proceed past the pleadings stage of litigation. The case has been transferred back to the district court and has a trial date of July 24, 2018. On September 7, 2017, the district court issued an order permitting Ms. Rubenstein to file a proposed Third Amended Complaint, which modifies the putative class period. Additionally, Ms. Rubenstein filed a motion for class certification, which was fully briefed by both parties. The parties reached an agreement in principle to settle the case, subject to court approval. A notice of settlement was filed, and the hearing on Ms. Rubenstein’s motion for class certification was vacated. The motion for preliminary approval of the settlement is due to be filed by March 14, 2018. The Company has several wage and hour putative class action matters pending in California. The earliest, filed in December 2015 and amended in February 2016, was filed against The Neiman Marcus Group, Inc. by Holly Attia and seven other named plaintiffs, seeking to certify a class of nonexempt employees for alleged violations for failure to pay overtime wages, failure to provide meal and rest breaks, failure to reimburse business expenses, failure to timely pay wages due at termination and failure to provide accurate itemized wage statements. Plaintiffs also allege derivative claims for restitution under California unfair competition law and a representative claim for penalties under PAGA, and all related damages for alleged violations (restitution, statutory penalties under PAGA, and attorneys' fees, interest and costs of suit). The case was removed to the U.S. District Court for the Central District of California in March 2016, and the Company filed a motion to compel arbitration and requested to stay the PAGA claim. In June 2016, the court granted the motion and compelled arbitration of the individual claims. The court retained jurisdiction of the PAGA claim and stayed that claim pending the outcome of arbitration. In October 2016, the court granted the plaintiffs' motion for reconsideration of the arbitration decision based on a recent decision by the Ninth Circuit Court of Appeals in Morris v. Ernst & Young, LLP , and reversed its order compelling arbitration. The Company appealed. The U.S. Supreme Court granted certiorari of the Morris decision, and the Ninth Circuit appeal is currently stayed pending the Supreme Court's decision. In June 2017, the district court stayed the entire case pending the Supreme Court’s decision in Morris . The parties reached an agreement in principle to settle this case, subject to court approval. On June 1, 2016, a PAGA representative action was filed against The Neiman Marcus Group, Inc. in the same court as Attia by Xuan Hien Nguyen pleading only PAGA claims and asserting the same factual allegations as the plaintiffs in Attia . The Company filed a motion to dismiss or to stay the case. In September 2016, the court granted the Company's motion and stayed the Nguyen case in light of Attia . At a status conference on January 29, 2018, the court maintained the stay and set a further status conference for June 7, 2018. On July 28, 2016, former employee Milca Connolly also filed a representative action alleging only PAGA claims against The Neiman Marcus Group raising substantially identical claims to those raised in both Attia and Nguyen . The Company filed a motion to dismiss or stay the case in light of Attia and Nguyen . In November 2016, the court granted the Company's motion to stay the case. At a status conference on January 29, 2018, the court maintained the stay and set a further status conference for June 7, 2018. On December 5, 2017, former employees Ondrea Roces and Sophia Ahmed file a putative class and representative action in California state court against The Neiman Marcus Group LLC and Neiman Marcus Group LTD LLC, seeking to certify a class of current and former sales associates for alleged failure to pay wages for all hours worked, recordkeeping and wage statement violations, and failure to timely pay wages due at termination. Plaintiffs also allege derivative claims for restitution under California unfair competition law and a representative claim for penalties under PAGA, and all related damages for alleged violations (restitution, statutory penalties under PAGA, and attorneys' fees, interest and costs of suit). The Company removed the action to the U.S. District Court for the Northern District of California on January 10, 2018. In February 2018, the court granted the parties' joint stipulation to stay this case pending completion of settlement proceedings in Attia . On October 24, 2017, a putative class action complaint was filed against The Neiman Marcus Group LLC and the Company’s Health and Welfare Benefit Plan in the U.S. District Court for the Western District of Washington by a Plan beneficiary alleging violations of the Federal Mental Health Parity Act and the Affordable Care Act through the Employment Retirement Income Security Act of 1974 (“ERISA”) in connection with the alleged failure to cover particular treatments for developmental health conditions. We cannot assess any potential liability at this early stage of the proceedings. On October 27, 2017, a putative class action complaint was filed against Neiman Marcus Group, Inc., The Neiman Marcus Group LLC, and Bergdorf Goodman, Inc. in the U.S. District Court for the Southern District of New York by Victor Lopez, an allegedly visually-impaired and legally blind individual, in connection with his visits to Bergdorf Goodman, Inc.’s website. Mr. Lopez alleges, on behalf of himself and those similarly situated, that Bergdorf Goodman, Inc.’s website is not fully and equally accessible to legally blind individuals, resulting in denial of access to the equal enjoyment of goods and services, in violation of the Americans with Disabilities Act and the New York State and City Human Rights Laws. In addition, we are currently involved in various other legal actions and proceedings that arose in the ordinary course of business. With respect to the matters described above as well as all other current outstanding litigation involving us, we believe that any liability arising as a result of such litigation will not have a material adverse effect on our financial condition, results of operations or cash flows. Cyber-Attack Class Actions Litigation. In January 2014, three class actions relating to a cyber-attack on our computer systems in 2013 (the "Cyber-Attack") were filed and later voluntarily dismissed by the plaintiffs between February and April 2014. The plaintiffs had alleged negligence and other claims in connection with their purchases by payment cards and sought monetary and injunctive relief. Three additional putative class actions relating to the Cyber-Attack were filed in March and April 2014, also alleging negligence and other claims in connection with plaintiffs’ purchases by payment cards. Two of the cases were voluntarily dismissed. The third case, Hilary Remijas v. The Neiman Marcus Group, LLC, was filed on March 12, 2014 in the U.S. District Court for the Northern District of Illinois. On June 2, 2014, an amended complaint in the Remijas case was filed, which added three plaintiffs (Debbie Farnoush and Joanne Kao, California residents; and Melissa Frank, a New York resident) and asserted claims for negligence, implied contract, unjust enrichment, violation of various consumer protection statutes, invasion of privacy and violation of state data breach laws. The Company moved to dismiss the Remijas amended complaint, and the court granted the Company's motion on the grounds that the plaintiffs lacked standing due to their failure to demonstrate an actionable injury. Plaintiffs appealed the district court's order dismissing the case to the Seventh Circuit Court of Appeals, and the Seventh Circuit Court of Appeals reversed the district court's ruling, remanding the case back to the district court. The Company filed a petition for rehearing en banc, which the Seventh Circuit Court of Appeals denied. The Company filed a motion for dismissal on other grounds, which the court denied. The parties jointly requested, and the court granted, an extension of time for filing a responsive pleading, which was due on December 28, 2016. On February 9, 2017, the court denied the parties' request for another extension of time, dismissed the case without prejudice, and stated that plaintiffs could file a motion to reinstate. On March 8, 2017, plaintiffs filed a motion to reinstate, which the court granted on March 16, 2017. On March 17, 2017, plaintiffs filed a motion seeking preliminary approval of a class action settlement resolving this action, which the court granted on June 21, 2017. On August 21, 2017, plaintiffs moved for final approval of the proposed settlement. In September 2017, purported settlement class members filed two objections to the settlement, and plaintiffs and the Company filed responses to the objections on October 19, 2017. At the fairness hearing on October 26, 2017, the Court ordered supplemental briefing on the objections. Objectors filed a supplemental brief in support of their objections on November 9, 2017, and plaintiffs and the Company filed their supplemental responses to the objections on November 21, 2017. On January 16, 2018, an order was issued by the District Court reassigning the case to Judge Sharon Johnson Coleman due to the prior judge’s retirement. The motion for final approval of the settlement remains pending. In addition to class actions litigation, payment card companies and associations may require us to reimburse them for unauthorized card charges and costs to replace cards and may also impose fines or penalties in connection with the security incident, and enforcement authorities may also impose fines or other remedies against us. We have also incurred other costs associated with this security incident, including legal fees, investigative fees, costs of communications with customers and credit monitoring services provided to our customers. At this point, we are unable to predict the developments in, outcome of, and economic and other consequences of pending or future litigation or regulatory investigations related to, and other costs associated with, this matter. We will continue to evaluate these matters based on subsequent events, new information and future circumstances. Other. We had $1.8 million of irrevocable letters of credit and $3.4 million in surety bonds outstanding at January 27, 2018 , relating primarily to merchandise imports and state sales tax and utility requirements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jan. 27, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss by component (amounts are recorded net of related income taxes): (in thousands) Foreign Currency Translation Adjustments Unrealized Gains on Financial Instruments Unfunded Benefit Obligations Total Balance, July 29, 2017 $ (11,600 ) $ 3,394 $ (55,225 ) $ (63,431 ) Other comprehensive earnings 6,154 3,129 360 9,643 Amounts reclassified from accumulated other comprehensive loss — 754 — 754 Balance, October 28, 2017 $ (5,446 ) $ 7,277 $ (54,865 ) $ (53,034 ) Other comprehensive earnings (loss) 4,567 9,449 (6 ) 14,010 Amounts reclassified from accumulated other comprehensive loss — 645 — 645 Balance, January 27, 2018 $ (879 ) $ 17,371 $ (54,871 ) $ (38,379 ) The amounts reclassified from accumulated other comprehensive loss are recorded within interest expense on the Condensed Consolidated Statements of Operations. |
Stock-Based Awards
Stock-Based Awards | 6 Months Ended |
Jan. 27, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Awards | Stock-Based Awards Incentive Plans. Parent established various incentive plans pursuant to which eligible employees, consultants and non-employee directors are eligible to receive stock-based awards. Under the incentive plans, Parent is authorized to grant stock options, restricted stock and other types of awards that are valued in whole or in part by reference to, or are payable or otherwise based on, the shares of common stock of Parent. Charges with respect to options issued by Parent pursuant to the incentive plans are reflected by the Company in the preparation of our Condensed Consolidated Financial Statements. Co-Invest Options. In connection with the Acquisition, certain executive officers of the Company rolled over a portion of the amounts otherwise payable in settlement of their pre-Acquisition stock options into stock options of Parent representing options to purchase a total of 56,979 shares of common stock of Parent (the "Co-Invest Options"). The number of Co-Invest Options issued upon conversion of pre-Acquisition stock options was equal to the product of (a) the number of shares subject to the applicable pre-Acquisition stock options multiplied by (b) the ratio of the per share merger consideration over the fair market value of a share of Parent, which was approximately 3.1 x (the "Exchange Ratio"). The exercise price of each pre-Acquisition stock option was adjusted by dividing the original exercise price of the pre-Acquisition stock option by the Exchange Ratio. Following the conversion, the exercise prices of the Co-Invest Options range from $180 to $644 per share. As of the date of the Acquisition, the aggregate intrinsic value of the Co-Invest Options equaled the aggregate intrinsic value of the rolled over pre-Acquisition stock options. The Co-Invest Options are fully vested and are exercisable at any time prior to the applicable expiration dates related to the original grant of the pre-Acquisition options. The Co-Invest Options contain sale and repurchase provisions. In September 2017, the Compensation Committee approved grants of non-qualified Co-Invest Options (the “New Co-Invest Options”) to certain continuing employees who previously held Co-Invest Options. The New Co-Invest Options have the effect of replacing the previous Co-Invest Options held by those employees, which were cancelled, and extending the expiration date to the ten th anniversary of the grant date. All other terms of the New Co-Invest Options remain unchanged from the terms of the cancelled Co-Invest Options. In the first quarter of fiscal year 2018, we recorded non-cash stock compensation expense aggregating $4.2 million related to the cancellation and replacement of the previous Co-Invest Options with the New Co-Invest Options. Non-Qualified Stock Options. Pursuant to the terms of the incentive plans, Parent granted time-vested and performance-vested non-qualified stock options to certain executive officers, employees and non-employee directors of the Company. These non-qualified stock options will expire no later than the ten th anniversary of the grant date. In January 2018, the Compensation Committee determined that the exercise prices of certain time-vested stock options were higher than the current fair market value of Parent's common stock. In order to enhance the retentive value of these options, the Compensation Committee approved a repricing of 43,261 time-vested stock options to an exercise price of $500 per share. In the second quarter of fiscal year 2018, we recorded non-cash stock compensation expense aggregating $0.5 million related to the repricing of the time-vested stock options. Accounting for Stock Options. Prior to an initial public offering ("IPO"), in the event the optionee ceases to be an employee of the Company, Parent generally has the right to repurchase shares issued upon exercise of vested stock options at fair market value and shares underlying vested unexercised stock options for the difference between the fair market value of the underlying share on the date of such optionee's termination of employment and the exercise price. However, other than with respect to the Co-Invest Options, if the optionee voluntarily leaves the Company without good reason (as defined in the incentive plans) or is terminated for cause, the repurchase price is the lesser of the exercise price of such options or the fair value of such awards at the employee termination date. For certain optionees, in the event of the retirement of the optionee, the repurchase price is the fair value at the retirement date. Parent's repurchase rights expire upon completion of an IPO, including with respect to the Co-Invest Options. We currently account for stock options issued to certain optionees who will become retirement eligible prior to the expiration of their stock options ("Retirement Eligible Optionees") as variable awards using the liability method as these optionees could receive a cash settlement of their awards at the time of retirement should Parent exercise its repurchase rights with respect to such shares. Under the liability method, we recognize the estimated liability for option awards held by Retirement Eligible Optionees over the vesting periods of such awards. In periods in which the estimated fair value of our equity increases, we increase our stock compensation liability. Conversely, in periods in which the estimated fair value of our equity decreases, we reduce our stock compensation liability. These increases/decreases are recorded as stock compensation expense and are included in selling, general and administrative expenses. With respect to time-vested options held by non-Retirement Eligible Optionees, such options are effectively forfeited should the optionee voluntarily leave the Company without good reason or be terminated for cause prior to an IPO. As a result, we currently record no expense or liability with respect to such options. With respect to performance-vested options, such options are effectively forfeited should the optionee voluntarily leave the Company without good reason or be terminated for cause prior to achievement of the performance condition. As a result, we currently record no expense or liability with respect to such options. At January 27, 2018 , an aggregate of 67,395 Co-Invest Options and time-vested options were held by Retirement Eligible Optionees. The recorded liability with respect to such options was $5.4 million at January 27, 2018 , $0.2 million at July 29, 2017 and $2.5 million at January 28, 2017 . The following table sets forth certain summary information with respect to our stock options for the periods indicated: Twenty-six weeks ended January 27, 2018 (in actuals) Shares Weighted Outstanding at July 29, 2017 196,416 $ 854 Granted 44,206 489 Exercised (974 ) 180 Cancelled (40,406 ) 467 Forfeited (14,183 ) 1,004 Expired (2,274 ) 346 Outstanding at January 27, 2018 182,785 $ 727 Restricted Stock. In the first quarter of fiscal year 2017, Parent approved grants of 26,954 restricted shares of common stock of Parent to certain executive officers and management employees. Subject to continued employment, shares of restricted stock will vest over three or four years in equal increments on each anniversary of December 1, 2016. Each year beginning in calendar 2017, subject to certain limitations, each recipient will have the ability to require Parent to acquire his or her vested shares (the "put right") during the 14 -day period following the release of the Company's earnings in respect of its first fiscal quarter (such period, the "put period") for a purchase price equal to the fair market value of Parent's common stock at the beginning of the put period. Except as described below with respect to our former Chief Executive Officer, a recipient will forfeit all unvested shares of restricted stock and may not exercise the put right with respect to any vested shares following the termination of his or her employment for any reason. Following a voluntary departure without good reason or a termination for cause, we have the right to repurchase any vested shares of restricted stock at par value ( $0.001 per share). In connection with the retirement of our former Chief Executive Officer, effective in February 2018, all unvested shares of restricted stock that would have vested in the 12 -month period following the date of such termination of employment will accelerate and vest. Our former Chief Executive Officer will have the ability to exercise the put right with respect to vested shares in the first put period following her retirement. At January 27, 2018 , 12,239 shares of unvested restricted common stock were outstanding. The recorded liability with respect to such shares was $0.3 million at January 27, 2018 and $1.2 million at July 29, 2017. Twenty-six weeks ended January 27, 2018 (in actuals) Shares Weighted Grant Date Fair Value Outstanding at July 29, 2017 21,355 $ 768 Vested (5,210 ) 768 Forfeited (3,906 ) 768 Outstanding at January 27, 2018 12,239 $ 768 Stock Compensation Expense. The following table summarizes our stock-based compensation expense: Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, January 28, January 27, January 28, Stock compensation expense: Stock options $ 1,153 $ (1,704 ) $ 5,406 $ (323 ) Restricted stock 180 840 486 840 Total $ 1,333 $ (864 ) $ 5,892 $ 517 For a more detailed description of our stock-based awards, refer to Note 14 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended July 29, 2017 . |
Income from Credit Card Program
Income from Credit Card Program | 6 Months Ended |
Jan. 27, 2018 | |
Income from Credit Card Program | |
Income from Credit Card Program | Income from Credit Card Program We maintain a proprietary credit card program through which credit is extended to customers and have a related marketing and servicing alliance with affiliates of Capital One Financial Corporation ("Capital One"). Pursuant to our agreement with Capital One (the "Program Agreement"), Capital One currently offers credit cards and non-card payment plans under both the “Neiman Marcus” and “Bergdorf Goodman” brand names. Effective July 1, 2013, we amended and extended the Program Agreement to July 2020 (renewable thereafter for three -year terms), subject to early termination provisions. We receive payments from Capital One based on sales transacted on our proprietary credit cards. These payments are based on the profitability of the credit card portfolio as determined under the Program Agreement and are impacted by a number of factors including credit losses incurred and our allocable share of the profits generated by the credit card portfolio, which in turn may be impacted by credit ratings as determined by various rating agencies. In addition, we receive payments from Capital One for marketing and servicing activities we provide to Capital One. We recognize income from our credit card program when earned. Additionally, beginning in July 2017, in accordance with the contractual provisions of the credit card program agreement, our allocable share of the profits generated by the credit card portfolio was reduced as a result of our current credit ratings. |
Other Expenses
Other Expenses | 6 Months Ended |
Jan. 27, 2018 | |
Other Expenses [Abstract] | |
Other Expenses (Income) | Other Expenses Other expenses consists of the following components: Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, January 28, January 27, January 28, Expenses related to store closures $ 6,602 $ 1,495 $ 7,920 $ 1,495 Expenses incurred in connection with strategic initiatives 1,388 1,932 1,810 8,485 Expenses related to Cyber-Attack, net of insurance recoveries — — 1,100 — MyTheresa acquisition costs — 1,317 — 702 Other expenses 4,624 467 4,624 1,347 Total $ 12,614 $ 5,211 $ 15,454 $ 12,029 During fiscal year 2017, we began a process to assess our Last Call footprint and closed four of our Last Call stores. During the second quarter of fiscal year 2018, we closed 11 additional Last Call stores in order to optimize our Last Call store portfolio. We incurred expenses related to these store closures, which primarily consisted of severance and store closing costs, of $6.6 million in the second quarter of fiscal year 2018, $1.5 million in the second quarter of fiscal year 2017, $7.9 million in year-to-date fiscal 2018 and $1.5 million in year-to-date fiscal 2017. We incurred professional fees and other costs aggregating $1.4 million in the second quarter of fiscal year 2018 , $1.9 million in the second quarter of fiscal year 2017 , $1.8 million in year-to-date fiscal 2018 and $8.5 million in year-to-date fiscal 2017 in connection with the review of our resources and organizational processes, implementation of our integrated merchandising and distribution system and the evaluation of potential strategic alternatives. In connection with the review of our resources and organizational processes, we eliminated approximately 90 positions in the first quarter of fiscal year 2017 across our stores, divisions and facilities. We discovered in January 2014 that malicious software was clandestinely installed on our computer systems (the "Cyber-Attack"). During year-to-date fiscal 2018, we incurred legal expenses in connection with the Cyber-Attack of $1.1 million . In connection with the retirement of our former Chief Executive Officer and President, we incurred certain charges primarily related to lump sum compensation payable as a consequence of her retirement of approximately $ 4.6 million in the second quarter of fiscal year 2018. In October 2014, we acquired MyTheresa, a luxury retailer headquartered in Munich, Germany. In fiscal year 2017, acquisition costs consisted primarily of professional fees as well as adjustments of our earn-out obligations to estimated fair value at each reporting date. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information (with respect to NMG's obligations under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes) | 6 Months Ended |
Jan. 27, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information (with respect to NMG's obligations under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes) | Condensed Consolidating Financial Information (with respect to NMG's obligations under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes) All of NMG’s obligations under the Senior Secured Credit Facilities are guaranteed by Holdings and our current and future direct and indirect wholly owned subsidiaries, subject to exceptions as more fully described in Note 5 . All of NMG's obligations under the Cash Pay Notes and the PIK Toggle Notes are guaranteed by the same entities that guarantee the Senior Secured Credit Facilities, other than Holdings. Currently, the Company’s non-guarantor subsidiaries under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes consist principally of (i) NMG Germany GmbH, through which we conduct the operations of MyTheresa, (ii) NMG International LLC, a holding company with respect to our foreign operations and (iii) Nancy Holdings LLC, which holds legal title to certain real property used by us in conducting our operations and described below under "— Results of Operations and Financial Condition of Unrestricted Subsidiaries". The non-guarantor subsidiary Nancy Holdings LLC had no assets or operations prior to March 10, 2017. The following condensed consolidating financial information represents the financial information of the Company and its non-guarantor subsidiaries under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes prepared on the equity basis of accounting. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the non-guarantor subsidiaries operated as independent entities. January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 31,072 $ 854 $ 3,862 $ — $ 35,788 Credit card receivables — 36,268 — 5,990 — 42,258 Merchandise inventories — 880,056 143,328 113,794 — 1,137,178 Other current assets — 127,745 10,943 4,914 (150 ) 143,452 Total current assets — 1,075,141 155,125 128,560 (150 ) 1,358,676 Property and equipment, net — 1,309,679 144,226 103,207 — 1,557,112 Intangible assets, net — 484,355 2,226,259 75,427 — 2,786,041 Goodwill — 1,338,844 414,402 134,483 — 1,887,729 Other long-term assets — 36,074 1,303 — — 37,377 Investments in subsidiaries 839,014 3,204,672 — — (4,043,686 ) — Total assets $ 839,014 $ 7,448,765 $ 2,941,315 $ 441,677 $ (4,043,836 ) $ 7,626,935 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 259,837 $ — $ 23,968 $ — $ 283,805 Accrued liabilities — 401,227 90,613 40,391 (150 ) 532,081 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 690,490 90,613 64,359 (150 ) 845,312 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,569,669 — 2,593 — 4,572,262 Deferred income taxes — 746,905 — 15,935 — 762,840 Other long-term liabilities — 602,687 5,413 (593 ) — 607,507 Total long-term liabilities — 5,919,261 5,413 17,935 — 5,942,609 Total member equity 839,014 839,014 2,845,289 359,383 (4,043,686 ) 839,014 Total liabilities and member equity $ 839,014 $ 7,448,765 $ 2,941,315 $ 441,677 $ (4,043,836 ) $ 7,626,935 July 29, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 28,301 $ 649 $ 20,289 $ — $ 49,239 Credit card receivables — 35,091 — 3,745 — 38,836 Merchandise inventories — 915,910 151,193 86,554 — 1,153,657 Other current assets — 135,174 9,956 1,896 (587 ) 146,439 Total current assets — 1,114,476 161,798 112,484 (587 ) 1,388,171 Property and equipment, net — 1,333,487 149,932 103,542 — 1,586,961 Intangible assets, net — 509,757 2,249,290 72,369 — 2,831,416 Goodwill — 1,338,844 414,402 127,648 — 1,880,894 Other long-term assets — 14,384 1,690 — — 16,074 Investments in subsidiaries 466,652 3,239,816 — — (3,706,468 ) — Total assets $ 466,652 $ 7,550,764 $ 2,977,112 $ 416,043 $ (3,707,055 ) $ 7,703,516 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 288,079 $ — $ 28,751 $ — $ 316,830 Accrued liabilities — 350,773 74,832 31,919 (587 ) 456,937 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 668,278 74,832 60,670 (587 ) 803,193 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,675,540 — — — 4,675,540 Deferred income taxes — 1,144,022 — 12,811 — 1,156,833 Other long-term liabilities — 596,272 5,379 (353 ) — 601,298 Total long-term liabilities — 6,415,834 5,379 12,458 — 6,433,671 Total member equity 466,652 466,652 2,896,901 342,915 (3,706,468 ) 466,652 Total liabilities and member equity $ 466,652 $ 7,550,764 $ 2,977,112 $ 416,043 $ (3,707,055 ) $ 7,703,516 January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 42,960 $ 596 $ 4,887 $ — $ 48,443 Credit card receivables — 33,156 — 4,281 — 37,437 Merchandise inventories — 961,538 173,570 78,375 — 1,213,483 Other current assets 118,969 11,939 2,219 (2,878 ) 130,249 Total current assets — 1,156,623 186,105 89,762 (2,878 ) 1,429,612 Property and equipment, net — 1,448,157 146,969 5,690 — 1,600,816 Intangible assets, net — 536,532 2,432,057 67,639 — 3,036,228 Goodwill — 1,412,147 537,263 118,039 — 2,067,449 Other long-term assets — 20,507 1,973 — — 22,480 Intercompany notes receivable — — 199,460 — (199,460 ) — Investments in subsidiaries 809,811 3,411,988 — — (4,221,799 ) — Total assets $ 809,811 $ 7,985,954 $ 3,503,827 $ 281,130 $ (4,424,137 ) $ 8,156,585 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 370,409 $ — $ 13,739 $ — $ 384,148 Accrued liabilities — 365,610 89,725 57,172 (2,878 ) 509,629 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 765,445 89,725 70,911 (2,878 ) 923,203 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,585,911 — — — 4,585,911 Intercompany notes payable — — — 199,460 (199,460 ) — Deferred income taxes — 1,203,983 — 7,805 — 1,211,788 Other long-term liabilities — 620,804 5,068 — — 625,872 Total long-term liabilities — 6,410,698 5,068 207,265 (199,460 ) 6,423,571 Total member equity 809,811 809,811 3,409,034 2,954 (4,221,799 ) 809,811 Total liabilities and member equity $ 809,811 $ 7,985,954 $ 3,503,827 $ 281,130 $ (4,424,137 ) $ 8,156,585 Thirteen weeks ended January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,177,621 $ 215,790 $ 88,707 $ — $ 1,482,118 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 814,745 153,024 56,287 — 1,024,056 Selling, general and administrative expenses (excluding depreciation) — 262,280 36,450 23,629 — 322,359 Income from credit card program — (12,621 ) (1,444 ) — — (14,065 ) Depreciation expense — 47,267 4,163 1,998 — 53,428 Amortization of intangible assets and favorable lease commitments — 12,416 11,468 400 — 24,284 Other expenses (income) — 12,614 — — — 12,614 Operating earnings (loss) — 40,920 12,129 6,393 — 59,442 Interest expense (income), net — 76,622 — (73 ) — 76,549 Intercompany royalty charges (income) — 49,364 (49,364 ) — — — Equity in loss (earnings) of subsidiaries (372,532 ) (66,776 ) — — 439,308 — Earnings (loss) before income taxes 372,532 (18,290 ) 61,493 6,466 (439,308 ) (17,107 ) Income tax expense (benefit) — (390,822 ) — 1,183 — (389,639 ) Net earnings (loss) $ 372,532 $ 372,532 $ 61,493 $ 5,283 $ (439,308 ) $ 372,532 Total other comprehensive earnings (loss), net of tax 14,655 10,088 — 4,567 (14,655 ) 14,655 Total comprehensive earnings (loss) $ 387,187 $ 382,620 $ 61,493 $ 9,850 $ (453,963 ) $ 387,187 Thirteen weeks ended January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,131,021 $ 201,598 $ 62,957 $ — $ 1,395,576 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 795,422 148,810 38,233 — 982,465 Selling, general and administrative expenses (excluding depreciation) — 254,906 35,746 17,066 — 307,718 Income from credit card program — (15,244 ) (1,506 ) — — (16,750 ) Depreciation expense — 52,895 4,025 293 — 57,213 Amortization of intangible assets and favorable lease commitments — 13,643 11,564 1,117 — 26,324 Other expenses (income) — 4,564 — 647 — 5,211 Impairment charges — 153,772 — — — 153,772 Operating earnings (loss) — (128,937 ) 2,959 5,601 — (120,377 ) Interest expense (income), net — 73,979 (1,446 ) 1,664 — 74,197 Intercompany royalty charges (income) — 42,440 (42,440 ) — — — Equity in loss (earnings) of subsidiaries 117,069 (49,390 ) — — (67,679 ) — Earnings (loss) before income taxes (117,069 ) (195,966 ) 46,845 3,937 67,679 (194,574 ) Income tax expense (benefit) — (78,897 ) — 1,392 — (77,505 ) Net earnings (loss) $ (117,069 ) $ (117,069 ) $ 46,845 $ 2,545 $ 67,679 $ (117,069 ) Total other comprehensive earnings (loss), net of tax 3,670 12,246 — (8,576 ) (3,670 ) 3,670 Total comprehensive earnings (loss) $ (113,399 ) $ (104,823 ) $ 46,845 $ (6,031 ) $ 64,009 $ (113,399 ) Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 2,027,767 $ 411,849 $ 162,801 $ — $ 2,602,417 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 1,366,694 276,591 103,658 — 1,746,943 Selling, general and administrative expenses (excluding depreciation) — 499,345 71,773 46,521 — 617,639 Income from credit card program — (23,152 ) (2,777 ) — — (25,929 ) Depreciation expense — 96,526 8,155 3,975 — 108,656 Amortization of intangible assets and favorable lease commitments — 25,401 23,032 800 — 49,233 Other expenses (income) — 15,454 — — — 15,454 Operating earnings (loss) — 47,499 35,075 7,847 — 90,421 Interest expense, net — 152,752 — (105 ) — 152,647 Intercompany royalty charges (income) — 88,797 (88,797 ) — — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — — 477,376 — Earnings (loss) before income taxes 346,315 (62,989 ) 123,872 7,952 (477,376 ) (62,226 ) Income tax expense (benefit) — (409,304 ) — 763 — (408,541 ) Net earnings (loss) $ 346,315 $ 346,315 $ 123,872 $ 7,189 $ (477,376 ) $ 346,315 Total other comprehensive earnings (loss), net of tax 25,052 14,331 — 10,721 (25,052 ) 25,052 Total comprehensive earnings (loss) $ 371,367 $ 360,646 $ 123,872 $ 17,910 $ (502,428 ) $ 371,367 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,967,626 $ 386,662 $ 120,395 $ — $ 2,474,683 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 1,339,960 265,919 76,481 — 1,682,360 Selling, general and administrative expenses (excluding depreciation) — 480,846 69,502 33,966 — 584,314 Income from credit card program — (27,673 ) (2,745 ) — — (30,418 ) Depreciation expense — 105,081 8,445 571 — 114,097 Amortization of intangible assets and favorable lease commitments — 28,075 23,251 2,275 — 53,601 Other expenses (income) — 12,687 — (658 ) — 12,029 Impairment charges — 153,772 — — — 153,772 Operating earnings (loss) — (125,122 ) 22,290 7,760 — (95,072 ) Interest expense, net — 146,069 (2,881 ) 3,092 — 146,280 Intercompany royalty charges (income) — 76,444 (76,444 ) — — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — — (35,113 ) — Earnings (loss) before income taxes (140,582 ) (242,166 ) 101,615 4,668 35,113 (241,352 ) Income tax expense (benefit) — (101,584 ) — 814 — (100,770 ) Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 101,615 $ 3,854 $ 35,113 $ (140,582 ) Total other comprehensive earnings (loss), net of tax 4,640 10,720 — (6,080 ) (4,640 ) 4,640 Total comprehensive earnings (loss) $ (135,942 ) $ (129,862 ) $ 101,615 $ (2,226 ) $ 30,473 $ (135,942 ) Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS - OPERATING ACTIVITIES Net earnings (loss) $ 346,315 $ 346,315 $ 123,872 $ 7,189 $ (477,376 ) $ 346,315 Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 134,165 31,187 4,775 — 170,127 Deferred income taxes — (402,691 ) — (290 ) — (402,981 ) Payment-in-kind interest — 29,289 — — — 29,289 Other — 1,595 420 (2,821 ) — (806 ) Intercompany royalty income payable (receivable) — 88,797 (88,797 ) — — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — — 477,376 — Changes in operating assets and liabilities, net — 142,090 (63,245 ) (25,245 ) — 53,600 Net cash provided by (used for) operating activities — 208,499 3,437 (16,392 ) — 195,544 CASH FLOWS - INVESTING ACTIVITIES Capital expenditures — (59,417 ) (3,232 ) (3,147 ) — (65,796 ) Net cash provided by (used for) investing activities — (59,417 ) (3,232 ) (3,147 ) — (65,796 ) CASH FLOWS - FINANCING ACTIVITIES Borrowings under revolving credit facilities — 432,000 — 18,163 — 450,163 Repayment of borrowings — (577,713 ) — (15,569 ) — (593,282 ) Repurchase of stock — (266 ) — — — (266 ) Shares withheld for remittance of employee taxes — (332 ) — — — (332 ) Net cash provided by (used for) financing activities — (146,311 ) — 2,594 — (143,717 ) Effect of exchange rate changes on cash and cash equivalents — — — 518 — 518 CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 2,771 205 (16,427 ) — (13,451 ) Beginning balance — 28,301 649 20,289 — 49,239 Ending balance $ — $ 31,072 $ 854 $ 3,862 $ — $ 35,788 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS - OPERATING ACTIVITIES Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 101,615 $ 3,854 $ 35,113 $ (140,582 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 145,420 31,696 2,846 — 179,962 Impairment charges — 153,772 — — — 153,772 Deferred income taxes — (86,627 ) — (2,747 ) — (89,374 ) Other — (1,943 ) (1,075 ) 5,356 — 2,338 Intercompany royalty income payable (receivable) — 76,444 (76,444 ) — — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — — (35,113 ) — Changes in operating assets and liabilities, net — 76,232 (42,860 ) (22,065 ) — 11,307 Net cash provided by (used for) operating activities — 117,247 12,932 (12,756 ) — 117,423 CASH FLOWS - INVESTING ACTIVITIES Capital expenditures — (99,006 ) (13,272 ) (3,420 ) — (115,698 ) Net cash provided by (used for) investing activities — (99,006 ) (13,272 ) (3,420 ) — (115,698 ) CASH FLOWS - FINANCING ACTIVITIES Borrowings under revolving credit facilities — 385,000 — — — 385,000 Repayment of borrowings — (394,713 ) — — — (394,713 ) Debt issuance costs paid — (5,359 ) — — — (5,359 ) Net cash provided (used for) by financing activities — (15,072 ) — — — (15,072 ) Effect of exchange rate changes on cash and cash equivalents — — — (53 ) — (53 ) CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 3,169 (340 ) (16,229 ) — (13,400 ) Beginning balance — 39,791 936 21,116 — 61,843 Ending balance $ — $ 42,960 $ 596 $ 4,887 $ — $ 48,443 Results of Operations and Financial Condition of Unrestricted Subsidiaries. On March 10, 2017, the Board of Directors of Parent designated certain of our subsidiaries as “unrestricted subsidiaries” for purposes of the indenture governing the Cash Pay Notes and the indenture governing the PIK Toggle Notes. These subsidiaries were previously or simultaneously designated as "unrestricted subsidiaries" under the Asset-Based Revolving Credit Facility and the Senior Secured Term Loan Facility. At January 27, 2018 , the unrestricted subsidiaries consisted primarily of (i) NMG Germany GmbH, through which we conduct the operations of MyTheresa and (ii) Nancy Holdings LLC, which holds legal title to certain real property located in McLean, Virginia, San Antonio, Texas and Longview, Texas used by us in conducting our operations. Pursuant to the terms of the indentures governing the Cash Pay Notes and the PIK Toggle Notes, we are presenting the following financial information with respect to the unrestricted subsidiaries separate from the Company and its restricted subsidiaries. The unrestricted subsidiary Nancy Holdings LLC had no assets or operations prior to March 10, 2017. The financial information of NMG Germany GmbH for the thirteen weeks ended January 28, 2017 was substantially the same as the financial information presented for “Non-Guarantor Subsidiaries” for such period included in the tables above in this Note 14 . The difference in net earnings of the unrestricted subsidiaries for the thirteen weeks and twenty-six weeks ended January 27, 2018 compared to the net earnings (loss) of the non-guarantor subsidiaries for such period, as presented in the tables above in this Note 14 , consisted primarily of a net interest income of approximately $1.5 million per fiscal quarter associated with an intercompany note payable by the MyTheresa unrestricted subsidiaries and held by NMG International LLC, which is a non-guarantor restricted subsidiary. This information may not necessarily be indicative of the financial condition and results of operations of the unrestricted subsidiaries had they operated as independent entities during the periods presented. Information with respect to the unrestricted subsidiaries with respect to the Cash Pay Notes and PIK Toggle Notes is as follows: (in thousands) January 27, 2018 July 29, 2017 Total assets $ 441,609 $ 415,974 Net assets 151,079 137,661 Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 Revenues $ 88,707 $ 62,957 $ 162,801 $ 120,395 Net earnings (loss) 3,758 2,544 4,139 3,857 Condensed Consolidating Financial Information (with respect to NMG's obligations under the 2028 Debentures) All of NMG’s obligations under the 2028 Debentures are guaranteed by the Company. The guarantee by the Company is full and unconditional and is subject to automatic release if the requirements for legal defeasance or covenant defeasance of the 2028 Debentures are satisfied, or if NMG’s obligations under the indenture governing the 2028 Debentures are discharged. Currently, the Company’s non-guarantor subsidiaries under the 2028 Debentures consist principally of (i) Bergdorf Goodman, Inc., through which we conduct the operations of our Bergdorf Goodman stores, (ii) NM Nevada Trust, which holds legal title to certain real property and intangible assets used by NMG in conducting its operations, (iii) NMG Germany GmbH, through which we conduct the operations of MyTheresa, (iv) NMG International LLC, a holding company with respect to our foreign operations and (v) Nancy Holdings LLC, which holds legal title to certain real property used by NMG in conducting its operations and described in Note 14 under "— Results of Operations and Financial Condition of Unrestricted Subsidiaries". The non-guarantor subsidiary Nancy Holdings LLC had no assets or operations prior to March 10, 2017. The following condensed consolidating financial information represents the financial information of the Company and its non-guarantor subsidiaries under the 2028 Debentures, prepared on the equity basis of accounting. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the non-guarantor subsidiaries operated as independent entities. January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 31,072 $ 4,716 $ — $ 35,788 Credit card receivables — 36,268 5,990 — 42,258 Merchandise inventories — 880,056 257,122 — 1,137,178 Other current assets — 127,745 15,857 (150 ) 143,452 Total current assets — 1,075,141 283,685 (150 ) 1,358,676 Property and equipment, net — 1,309,679 247,433 — 1,557,112 Intangible assets, net — 484,355 2,301,686 — 2,786,041 Goodwill — 1,338,844 548,885 — 1,887,729 Other long-term assets — 36,074 1,303 — 37,377 Investments in subsidiaries 839,014 3,204,672 — (4,043,686 ) — Total assets $ 839,014 $ 7,448,765 $ 3,382,992 $ (4,043,836 ) $ 7,626,935 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 259,837 $ 23,968 $ — $ 283,805 Accrued liabilities — 401,227 131,004 (150 ) 532,081 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 690,490 154,972 (150 ) 845,312 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,569,669 2,593 — 4,572,262 Deferred income taxes — 746,905 15,935 — 762,840 Other long-term liabilities — 602,687 4,820 — 607,507 Total long-term liabilities — 5,919,261 23,348 — 5,942,609 Total member equity 839,014 839,014 3,204,672 (4,043,686 ) 839,014 Total liabilities and member equity $ 839,014 $ 7,448,765 $ 3,382,992 $ (4,043,836 ) $ 7,626,935 July 29, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 28,301 $ 20,938 $ — $ 49,239 Credit card receivables — 35,091 3,745 — 38,836 Merchandise inventories — 915,910 237,747 — 1,153,657 Other current assets — 135,174 11,852 (587 ) 146,439 Total current assets — 1,114,476 274,282 (587 ) 1,388,171 Property and equipment, net — 1,333,487 253,474 — 1,586,961 Intangible assets, net — 509,757 2,321,659 — 2,831,416 Goodwill — 1,338,844 542,050 — 1,880,894 Other long-term assets — 14,384 1,690 — 16,074 Investments in subsidiaries 466,652 3,239,816 — (3,706,468 ) — Total assets $ 466,652 $ 7,550,764 $ 3,393,155 $ (3,707,055 ) $ 7,703,516 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 288,079 $ 28,751 $ — $ 316,830 Accrued liabilities — 350,773 106,751 (587 ) 456,937 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 668,278 135,502 (587 ) 803,193 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,675,540 — — 4,675,540 Deferred income taxes — 1,144,022 12,811 — 1,156,833 Other long-term liabilities — 596,272 5,026 — 601,298 Total long-term liabilities — 6,415,834 17,837 — 6,433,671 Total member equity 466,652 466,652 3,239,816 (3,706,468 ) 466,652 Total liabilities and member equity $ 466,652 $ 7,550,764 $ 3,393,155 $ (3,707,055 ) $ 7,703,516 January 28, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 42,960 $ 5,483 $ — $ 48,443 Credit card receivables — 33,156 4,281 — 37,437 Merchandise inventories — 961,538 251,945 — 1,213,483 Other current assets — 118,969 11,280 — 130,249 Total current assets — 1,156,623 272,989 — 1,429,612 Property and equipment, net — 1,448,157 152,659 — 1,600,816 Intangible assets, net — 536,532 2,499,696 — 3,036,228 Goodwill — 1,412,147 655,302 — 2,067,449 Other long-term assets — 20,507 1,973 — 22,480 Investments in subsidiaries 809,811 3,411,988 — (4,221,799 ) — Total assets $ 809,811 $ 7,985,954 $ 3,582,619 $ (4,221,799 ) $ 8,156,585 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 370,409 $ 13,739 $ — $ 384,148 Accrued liabilities — 365,610 144,019 — 509,629 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 765,445 157,758 — 923,203 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,585,911 — — 4,585,911 Deferred income taxes — 1,203,983 7,805 — 1,211,788 Other long-term liabilities — 620,804 5,068 — 625,872 Total long-term liabilities — 6,410,698 12,873 — 6,423,571 Total member equity 809,811 809,811 3,411,988 (4,221,799 ) 809,811 Total liabilities and member equity $ 809,811 $ 7,985,954 $ 3,582,619 $ (4,221,799 ) $ 8,156,585 Thirteen weeks ended January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,177,621 $ 304,497 $ — $ 1,482,118 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 814,745 209,311 — 1,024,056 Selling, general and administrative expenses (excluding depreciation) — 262,280 60,079 — 322,359 Income from credit card program — (12,621 ) (1,444 ) — (14,065 ) Depreciation expense — 47,267 6,161 — 53,428 Amortization of intangible assets and favorable lease commitments — 12,416 11,868 — 24,284 Other expenses (income) — 12,614 — — 12,614 Operating earnings (loss) — 40,920 18,522 — 59,442 Interest expense (income), net — 76,622 (73 ) — 76,549 Intercompany royalty charges (income) — 49,364 (49,364 ) — — Equity in loss (earnings) of subsidiaries (372,532 ) (66,776 ) — 439,308 — Earnings (loss) before income taxes 372,532 (18,290 ) 67,959 (439,308 ) (17,107 ) Income tax expense (benefit) — (390,822 ) 1,183 — (389,639 ) Net earnings (loss) $ 372,532 $ 372,532 $ 66,776 $ (439,308 ) $ 372,532 Total other comprehensive earnings (loss), net of tax 14,655 10,088 4,567 (14,655 ) 14,655 Total comprehensive earnings (loss) $ 387,187 $ 382,620 $ 71,343 $ (453,963 ) $ 387,187 Thirteen weeks ended January 28, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,131,021 $ 264,555 $ — $ 1,395,576 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 795,422 187,043 — 982,465 Selling, general and administrative expenses (excluding depreciation) — 254,906 52,812 — 307,718 Income from credit card program — (15,244 ) (1,506 ) — (16,750 ) Depreciation expense — 52,895 4,318 — 57,213 Amortization of intangible assets and favorable lease commitments — 13,643 12,681 — 26,324 Other expenses (income) — 4,564 647 — 5,211 Impairment charges — 153,772 — — 153,772 Operating earnings (loss) — (128,937 ) 8,560 — (120,377 ) Interest expense (income), net — 73,979 218 — 74,197 Intercompany royalty charges (income) — 42,440 (42,440 ) — — Equity in loss (earnings) of subsidiaries 117,069 (49,390 ) — (67,679 ) — Earnings (loss) before income taxes (117,069 ) (195,966 ) 50,782 67,679 (194,574 ) Income tax expense (benefit) — (78,897 ) 1,392 — (77,505 ) Net earnings (loss) $ (117,069 ) $ (117,069 ) $ 49,390 $ 67,679 $ (117,069 ) Total other comprehensive earnings (loss), net of tax 3,670 12,246 (8,576 ) (3,670 ) 3,670 Total comprehensive earnings (loss) $ (113,399 ) $ (104,823 ) $ 40,814 $ 64,009 $ (113,399 ) Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 2,027,767 $ 574,650 $ — $ 2,602,417 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 1,366,694 380,249 — 1,746,943 Selling, general and administrative expenses (excluding depreciation) — 499,345 118,294 — 617,639 Income from credit card program — (23,152 ) (2,777 ) — (25,929 ) Depreciation expense — 96,526 12,130 — 108,656 Amortization of intangible assets and favorable lease commitments — 25,401 23,832 — 49,233 Other expenses (income) — 15,454 — — 15,454 Operating earnings (loss) — 47,499 42,922 — 90,421 Interest expense, net — 152,752 (105 ) — 152,647 Intercompany royalty charges (income) — 88,797 (88,797 ) — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — 477,376 — Earnings (loss) before income taxes 346,315 (62,989 ) 131,824 (477,376 ) (62,226 ) Income tax expense (benefit) — (409,304 ) 763 — (408,541 ) Net earnings (loss) $ 346,315 $ 346,315 $ 131,061 $ (477,376 ) $ 346,315 Total other comprehensive earnings (loss), net of tax 25,052 14,331 10,721 (25,052 ) 25,052 Total comprehensive earnings (loss) $ 371,367 $ 360,646 $ 141,782 $ (502,428 ) $ 371,367 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,967,626 $ 507,057 $ — $ 2,474,683 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 1,339,960 342,400 — 1,682,360 Selling, general and administrative expenses (excluding depreciation) — 480,846 103,468 — 584,314 Income from credit card program — (27,673 ) (2,745 ) — (30,418 ) Depreciation expense — 105,081 9,016 — 114,097 Amortization of intangible assets and favorable lease commitments — 28,075 25,526 — 53,601 Other expenses (income) — 12,687 (658 ) — 12,029 Impairment charges — 153,772 — — 153,772 Operating earnings (loss) — (125,122 ) 30,050 — (95,072 ) Interest expense, net — 146,069 211 — 146,280 Intercompany royalty charges (income) — 76,444 (76,444 ) — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — (35,113 ) — Earnings (loss) before income taxes (140,582 ) (242,166 ) 106,283 35,113 (241,352 ) Income tax expense (benefit) — (101,584 ) 814 — (100,770 ) Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 105,469 $ 35,113 $ (140,582 ) Total other comprehensive earnings (loss), net of tax 4,640 10,720 (6,080 ) (4,640 ) 4,640 Total comprehensive earnings (loss) $ (135,942 ) $ (129,862 ) $ 99,389 $ 30,473 $ (135,942 ) Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS—OPERATING ACTIVITIES Net earnings (loss) $ 346,315 $ 346,315 $ 131,061 $ (477,376 ) $ 346,315 Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 134,165 35,962 — 170,127 Deferred income taxes (402,691 ) (290 ) — (402,981 ) Payment-in-kind interest — 29,289 — — 29,289 Other — 1,595 (2,401 ) — (806 ) Intercompany royalty income payable (receivable) — 88,797 (88,797 ) — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — 477,376 — Changes in operating assets and liabilities, net — 142,090 (88,490 ) 53,600 Net cash provided by (used for) operating activities — 208,499 (12,955 ) — 195,544 CASH FLOWS—INVESTING ACTIVITIES Capital expenditures — (59,417 ) (6,379 ) — (65,796 ) Net cash provided by (used for) investing activities — (59,417 ) (6,379 ) — (65,796 ) CASH FLOWS—FINANCING ACTIVITIES Borrowings under revolving credit facilities — 432,000 18,163 — 450,163 Repayment of borrowings — (577,713 ) (15,569 ) — (593,282 ) Repurchase of stock — (266 ) — — (266 ) Shares withheld for remittance of employee taxes — (332 ) — — (332 ) Net cash provided by (used for) financing activities — (146,311 ) 2,594 — (143,717 ) Effect of exchange rate changes on cash and cash equivalents — — 518 — 518 CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 2,771 (16,222 ) — (13,451 ) Beginning balance — 28,301 20,938 — 49,239 Ending balance $ — $ 31,072 $ 4,716 $ — $ 35,788 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Non- Eliminations Consolidated CASH FLOWS—OPERATING ACTIVITIES Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 105,469 $ 35,113 $ (140,582 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 145,420 34,542 — 179,962 Impairment charges — 153,772 — — 153,772 Deferred income taxes — (86,627 ) (2,747 ) — (89,374 ) Other — (1,943 ) 4,281 — 2,338 Intercompany royalty income payable (receivable) — 76,444 (76,444 ) — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — (35,113 ) — Changes in operating assets and liabilities, net — 76,232 (64,925 ) — 11,307 Net cash provided by (used for) operating activities — 117,247 176 — 117,423 CASH FLOWS—INVESTING ACTIVITIES Capital expenditures — (99,006 ) (16,692 ) — (115,698 ) Net cash provided by (used for) investing activities — (99,006 ) (16,692 ) — (115,698 ) CASH FLOWS—FINANCING ACTIVITIES Borrowings under revolving credit facilities — 385,000 — — 385,000 Repayment of borrowings — (394,713 ) — — (394,713 ) Debt issuance costs paid — (5,359 ) — — (5,359 ) Net cash provided by (used for) financing activities — (15,072 ) — — (15,072 ) Effect of exchange rate changes on cash and cash equivalents — — (53 ) — (53 ) CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 3,169 (16,569 ) — (13,400 ) Beginning balance — 39,791 22,052 — 61,843 Ending balance $ — $ 42,960 $ 5,483 $ — $ 48,443 |
Condensed Consolidating Finan21
Condensed Consolidating Financial Information (with respect to NMG's obligations under the 2028 Debentures) | 6 Months Ended |
Jan. 27, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information (with respect to NMG's obligations under the 2028 Debentures) | Condensed Consolidating Financial Information (with respect to NMG's obligations under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes) All of NMG’s obligations under the Senior Secured Credit Facilities are guaranteed by Holdings and our current and future direct and indirect wholly owned subsidiaries, subject to exceptions as more fully described in Note 5 . All of NMG's obligations under the Cash Pay Notes and the PIK Toggle Notes are guaranteed by the same entities that guarantee the Senior Secured Credit Facilities, other than Holdings. Currently, the Company’s non-guarantor subsidiaries under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes consist principally of (i) NMG Germany GmbH, through which we conduct the operations of MyTheresa, (ii) NMG International LLC, a holding company with respect to our foreign operations and (iii) Nancy Holdings LLC, which holds legal title to certain real property used by us in conducting our operations and described below under "— Results of Operations and Financial Condition of Unrestricted Subsidiaries". The non-guarantor subsidiary Nancy Holdings LLC had no assets or operations prior to March 10, 2017. The following condensed consolidating financial information represents the financial information of the Company and its non-guarantor subsidiaries under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes prepared on the equity basis of accounting. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the non-guarantor subsidiaries operated as independent entities. January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 31,072 $ 854 $ 3,862 $ — $ 35,788 Credit card receivables — 36,268 — 5,990 — 42,258 Merchandise inventories — 880,056 143,328 113,794 — 1,137,178 Other current assets — 127,745 10,943 4,914 (150 ) 143,452 Total current assets — 1,075,141 155,125 128,560 (150 ) 1,358,676 Property and equipment, net — 1,309,679 144,226 103,207 — 1,557,112 Intangible assets, net — 484,355 2,226,259 75,427 — 2,786,041 Goodwill — 1,338,844 414,402 134,483 — 1,887,729 Other long-term assets — 36,074 1,303 — — 37,377 Investments in subsidiaries 839,014 3,204,672 — — (4,043,686 ) — Total assets $ 839,014 $ 7,448,765 $ 2,941,315 $ 441,677 $ (4,043,836 ) $ 7,626,935 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 259,837 $ — $ 23,968 $ — $ 283,805 Accrued liabilities — 401,227 90,613 40,391 (150 ) 532,081 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 690,490 90,613 64,359 (150 ) 845,312 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,569,669 — 2,593 — 4,572,262 Deferred income taxes — 746,905 — 15,935 — 762,840 Other long-term liabilities — 602,687 5,413 (593 ) — 607,507 Total long-term liabilities — 5,919,261 5,413 17,935 — 5,942,609 Total member equity 839,014 839,014 2,845,289 359,383 (4,043,686 ) 839,014 Total liabilities and member equity $ 839,014 $ 7,448,765 $ 2,941,315 $ 441,677 $ (4,043,836 ) $ 7,626,935 July 29, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 28,301 $ 649 $ 20,289 $ — $ 49,239 Credit card receivables — 35,091 — 3,745 — 38,836 Merchandise inventories — 915,910 151,193 86,554 — 1,153,657 Other current assets — 135,174 9,956 1,896 (587 ) 146,439 Total current assets — 1,114,476 161,798 112,484 (587 ) 1,388,171 Property and equipment, net — 1,333,487 149,932 103,542 — 1,586,961 Intangible assets, net — 509,757 2,249,290 72,369 — 2,831,416 Goodwill — 1,338,844 414,402 127,648 — 1,880,894 Other long-term assets — 14,384 1,690 — — 16,074 Investments in subsidiaries 466,652 3,239,816 — — (3,706,468 ) — Total assets $ 466,652 $ 7,550,764 $ 2,977,112 $ 416,043 $ (3,707,055 ) $ 7,703,516 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 288,079 $ — $ 28,751 $ — $ 316,830 Accrued liabilities — 350,773 74,832 31,919 (587 ) 456,937 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 668,278 74,832 60,670 (587 ) 803,193 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,675,540 — — — 4,675,540 Deferred income taxes — 1,144,022 — 12,811 — 1,156,833 Other long-term liabilities — 596,272 5,379 (353 ) — 601,298 Total long-term liabilities — 6,415,834 5,379 12,458 — 6,433,671 Total member equity 466,652 466,652 2,896,901 342,915 (3,706,468 ) 466,652 Total liabilities and member equity $ 466,652 $ 7,550,764 $ 2,977,112 $ 416,043 $ (3,707,055 ) $ 7,703,516 January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 42,960 $ 596 $ 4,887 $ — $ 48,443 Credit card receivables — 33,156 — 4,281 — 37,437 Merchandise inventories — 961,538 173,570 78,375 — 1,213,483 Other current assets 118,969 11,939 2,219 (2,878 ) 130,249 Total current assets — 1,156,623 186,105 89,762 (2,878 ) 1,429,612 Property and equipment, net — 1,448,157 146,969 5,690 — 1,600,816 Intangible assets, net — 536,532 2,432,057 67,639 — 3,036,228 Goodwill — 1,412,147 537,263 118,039 — 2,067,449 Other long-term assets — 20,507 1,973 — — 22,480 Intercompany notes receivable — — 199,460 — (199,460 ) — Investments in subsidiaries 809,811 3,411,988 — — (4,221,799 ) — Total assets $ 809,811 $ 7,985,954 $ 3,503,827 $ 281,130 $ (4,424,137 ) $ 8,156,585 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 370,409 $ — $ 13,739 $ — $ 384,148 Accrued liabilities — 365,610 89,725 57,172 (2,878 ) 509,629 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 765,445 89,725 70,911 (2,878 ) 923,203 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,585,911 — — — 4,585,911 Intercompany notes payable — — — 199,460 (199,460 ) — Deferred income taxes — 1,203,983 — 7,805 — 1,211,788 Other long-term liabilities — 620,804 5,068 — — 625,872 Total long-term liabilities — 6,410,698 5,068 207,265 (199,460 ) 6,423,571 Total member equity 809,811 809,811 3,409,034 2,954 (4,221,799 ) 809,811 Total liabilities and member equity $ 809,811 $ 7,985,954 $ 3,503,827 $ 281,130 $ (4,424,137 ) $ 8,156,585 Thirteen weeks ended January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,177,621 $ 215,790 $ 88,707 $ — $ 1,482,118 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 814,745 153,024 56,287 — 1,024,056 Selling, general and administrative expenses (excluding depreciation) — 262,280 36,450 23,629 — 322,359 Income from credit card program — (12,621 ) (1,444 ) — — (14,065 ) Depreciation expense — 47,267 4,163 1,998 — 53,428 Amortization of intangible assets and favorable lease commitments — 12,416 11,468 400 — 24,284 Other expenses (income) — 12,614 — — — 12,614 Operating earnings (loss) — 40,920 12,129 6,393 — 59,442 Interest expense (income), net — 76,622 — (73 ) — 76,549 Intercompany royalty charges (income) — 49,364 (49,364 ) — — — Equity in loss (earnings) of subsidiaries (372,532 ) (66,776 ) — — 439,308 — Earnings (loss) before income taxes 372,532 (18,290 ) 61,493 6,466 (439,308 ) (17,107 ) Income tax expense (benefit) — (390,822 ) — 1,183 — (389,639 ) Net earnings (loss) $ 372,532 $ 372,532 $ 61,493 $ 5,283 $ (439,308 ) $ 372,532 Total other comprehensive earnings (loss), net of tax 14,655 10,088 — 4,567 (14,655 ) 14,655 Total comprehensive earnings (loss) $ 387,187 $ 382,620 $ 61,493 $ 9,850 $ (453,963 ) $ 387,187 Thirteen weeks ended January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,131,021 $ 201,598 $ 62,957 $ — $ 1,395,576 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 795,422 148,810 38,233 — 982,465 Selling, general and administrative expenses (excluding depreciation) — 254,906 35,746 17,066 — 307,718 Income from credit card program — (15,244 ) (1,506 ) — — (16,750 ) Depreciation expense — 52,895 4,025 293 — 57,213 Amortization of intangible assets and favorable lease commitments — 13,643 11,564 1,117 — 26,324 Other expenses (income) — 4,564 — 647 — 5,211 Impairment charges — 153,772 — — — 153,772 Operating earnings (loss) — (128,937 ) 2,959 5,601 — (120,377 ) Interest expense (income), net — 73,979 (1,446 ) 1,664 — 74,197 Intercompany royalty charges (income) — 42,440 (42,440 ) — — — Equity in loss (earnings) of subsidiaries 117,069 (49,390 ) — — (67,679 ) — Earnings (loss) before income taxes (117,069 ) (195,966 ) 46,845 3,937 67,679 (194,574 ) Income tax expense (benefit) — (78,897 ) — 1,392 — (77,505 ) Net earnings (loss) $ (117,069 ) $ (117,069 ) $ 46,845 $ 2,545 $ 67,679 $ (117,069 ) Total other comprehensive earnings (loss), net of tax 3,670 12,246 — (8,576 ) (3,670 ) 3,670 Total comprehensive earnings (loss) $ (113,399 ) $ (104,823 ) $ 46,845 $ (6,031 ) $ 64,009 $ (113,399 ) Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 2,027,767 $ 411,849 $ 162,801 $ — $ 2,602,417 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 1,366,694 276,591 103,658 — 1,746,943 Selling, general and administrative expenses (excluding depreciation) — 499,345 71,773 46,521 — 617,639 Income from credit card program — (23,152 ) (2,777 ) — — (25,929 ) Depreciation expense — 96,526 8,155 3,975 — 108,656 Amortization of intangible assets and favorable lease commitments — 25,401 23,032 800 — 49,233 Other expenses (income) — 15,454 — — — 15,454 Operating earnings (loss) — 47,499 35,075 7,847 — 90,421 Interest expense, net — 152,752 — (105 ) — 152,647 Intercompany royalty charges (income) — 88,797 (88,797 ) — — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — — 477,376 — Earnings (loss) before income taxes 346,315 (62,989 ) 123,872 7,952 (477,376 ) (62,226 ) Income tax expense (benefit) — (409,304 ) — 763 — (408,541 ) Net earnings (loss) $ 346,315 $ 346,315 $ 123,872 $ 7,189 $ (477,376 ) $ 346,315 Total other comprehensive earnings (loss), net of tax 25,052 14,331 — 10,721 (25,052 ) 25,052 Total comprehensive earnings (loss) $ 371,367 $ 360,646 $ 123,872 $ 17,910 $ (502,428 ) $ 371,367 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,967,626 $ 386,662 $ 120,395 $ — $ 2,474,683 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 1,339,960 265,919 76,481 — 1,682,360 Selling, general and administrative expenses (excluding depreciation) — 480,846 69,502 33,966 — 584,314 Income from credit card program — (27,673 ) (2,745 ) — — (30,418 ) Depreciation expense — 105,081 8,445 571 — 114,097 Amortization of intangible assets and favorable lease commitments — 28,075 23,251 2,275 — 53,601 Other expenses (income) — 12,687 — (658 ) — 12,029 Impairment charges — 153,772 — — — 153,772 Operating earnings (loss) — (125,122 ) 22,290 7,760 — (95,072 ) Interest expense, net — 146,069 (2,881 ) 3,092 — 146,280 Intercompany royalty charges (income) — 76,444 (76,444 ) — — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — — (35,113 ) — Earnings (loss) before income taxes (140,582 ) (242,166 ) 101,615 4,668 35,113 (241,352 ) Income tax expense (benefit) — (101,584 ) — 814 — (100,770 ) Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 101,615 $ 3,854 $ 35,113 $ (140,582 ) Total other comprehensive earnings (loss), net of tax 4,640 10,720 — (6,080 ) (4,640 ) 4,640 Total comprehensive earnings (loss) $ (135,942 ) $ (129,862 ) $ 101,615 $ (2,226 ) $ 30,473 $ (135,942 ) Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS - OPERATING ACTIVITIES Net earnings (loss) $ 346,315 $ 346,315 $ 123,872 $ 7,189 $ (477,376 ) $ 346,315 Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 134,165 31,187 4,775 — 170,127 Deferred income taxes — (402,691 ) — (290 ) — (402,981 ) Payment-in-kind interest — 29,289 — — — 29,289 Other — 1,595 420 (2,821 ) — (806 ) Intercompany royalty income payable (receivable) — 88,797 (88,797 ) — — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — — 477,376 — Changes in operating assets and liabilities, net — 142,090 (63,245 ) (25,245 ) — 53,600 Net cash provided by (used for) operating activities — 208,499 3,437 (16,392 ) — 195,544 CASH FLOWS - INVESTING ACTIVITIES Capital expenditures — (59,417 ) (3,232 ) (3,147 ) — (65,796 ) Net cash provided by (used for) investing activities — (59,417 ) (3,232 ) (3,147 ) — (65,796 ) CASH FLOWS - FINANCING ACTIVITIES Borrowings under revolving credit facilities — 432,000 — 18,163 — 450,163 Repayment of borrowings — (577,713 ) — (15,569 ) — (593,282 ) Repurchase of stock — (266 ) — — — (266 ) Shares withheld for remittance of employee taxes — (332 ) — — — (332 ) Net cash provided by (used for) financing activities — (146,311 ) — 2,594 — (143,717 ) Effect of exchange rate changes on cash and cash equivalents — — — 518 — 518 CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 2,771 205 (16,427 ) — (13,451 ) Beginning balance — 28,301 649 20,289 — 49,239 Ending balance $ — $ 31,072 $ 854 $ 3,862 $ — $ 35,788 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS - OPERATING ACTIVITIES Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 101,615 $ 3,854 $ 35,113 $ (140,582 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 145,420 31,696 2,846 — 179,962 Impairment charges — 153,772 — — — 153,772 Deferred income taxes — (86,627 ) — (2,747 ) — (89,374 ) Other — (1,943 ) (1,075 ) 5,356 — 2,338 Intercompany royalty income payable (receivable) — 76,444 (76,444 ) — — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — — (35,113 ) — Changes in operating assets and liabilities, net — 76,232 (42,860 ) (22,065 ) — 11,307 Net cash provided by (used for) operating activities — 117,247 12,932 (12,756 ) — 117,423 CASH FLOWS - INVESTING ACTIVITIES Capital expenditures — (99,006 ) (13,272 ) (3,420 ) — (115,698 ) Net cash provided by (used for) investing activities — (99,006 ) (13,272 ) (3,420 ) — (115,698 ) CASH FLOWS - FINANCING ACTIVITIES Borrowings under revolving credit facilities — 385,000 — — — 385,000 Repayment of borrowings — (394,713 ) — — — (394,713 ) Debt issuance costs paid — (5,359 ) — — — (5,359 ) Net cash provided (used for) by financing activities — (15,072 ) — — — (15,072 ) Effect of exchange rate changes on cash and cash equivalents — — — (53 ) — (53 ) CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 3,169 (340 ) (16,229 ) — (13,400 ) Beginning balance — 39,791 936 21,116 — 61,843 Ending balance $ — $ 42,960 $ 596 $ 4,887 $ — $ 48,443 Results of Operations and Financial Condition of Unrestricted Subsidiaries. On March 10, 2017, the Board of Directors of Parent designated certain of our subsidiaries as “unrestricted subsidiaries” for purposes of the indenture governing the Cash Pay Notes and the indenture governing the PIK Toggle Notes. These subsidiaries were previously or simultaneously designated as "unrestricted subsidiaries" under the Asset-Based Revolving Credit Facility and the Senior Secured Term Loan Facility. At January 27, 2018 , the unrestricted subsidiaries consisted primarily of (i) NMG Germany GmbH, through which we conduct the operations of MyTheresa and (ii) Nancy Holdings LLC, which holds legal title to certain real property located in McLean, Virginia, San Antonio, Texas and Longview, Texas used by us in conducting our operations. Pursuant to the terms of the indentures governing the Cash Pay Notes and the PIK Toggle Notes, we are presenting the following financial information with respect to the unrestricted subsidiaries separate from the Company and its restricted subsidiaries. The unrestricted subsidiary Nancy Holdings LLC had no assets or operations prior to March 10, 2017. The financial information of NMG Germany GmbH for the thirteen weeks ended January 28, 2017 was substantially the same as the financial information presented for “Non-Guarantor Subsidiaries” for such period included in the tables above in this Note 14 . The difference in net earnings of the unrestricted subsidiaries for the thirteen weeks and twenty-six weeks ended January 27, 2018 compared to the net earnings (loss) of the non-guarantor subsidiaries for such period, as presented in the tables above in this Note 14 , consisted primarily of a net interest income of approximately $1.5 million per fiscal quarter associated with an intercompany note payable by the MyTheresa unrestricted subsidiaries and held by NMG International LLC, which is a non-guarantor restricted subsidiary. This information may not necessarily be indicative of the financial condition and results of operations of the unrestricted subsidiaries had they operated as independent entities during the periods presented. Information with respect to the unrestricted subsidiaries with respect to the Cash Pay Notes and PIK Toggle Notes is as follows: (in thousands) January 27, 2018 July 29, 2017 Total assets $ 441,609 $ 415,974 Net assets 151,079 137,661 Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 Revenues $ 88,707 $ 62,957 $ 162,801 $ 120,395 Net earnings (loss) 3,758 2,544 4,139 3,857 Condensed Consolidating Financial Information (with respect to NMG's obligations under the 2028 Debentures) All of NMG’s obligations under the 2028 Debentures are guaranteed by the Company. The guarantee by the Company is full and unconditional and is subject to automatic release if the requirements for legal defeasance or covenant defeasance of the 2028 Debentures are satisfied, or if NMG’s obligations under the indenture governing the 2028 Debentures are discharged. Currently, the Company’s non-guarantor subsidiaries under the 2028 Debentures consist principally of (i) Bergdorf Goodman, Inc., through which we conduct the operations of our Bergdorf Goodman stores, (ii) NM Nevada Trust, which holds legal title to certain real property and intangible assets used by NMG in conducting its operations, (iii) NMG Germany GmbH, through which we conduct the operations of MyTheresa, (iv) NMG International LLC, a holding company with respect to our foreign operations and (v) Nancy Holdings LLC, which holds legal title to certain real property used by NMG in conducting its operations and described in Note 14 under "— Results of Operations and Financial Condition of Unrestricted Subsidiaries". The non-guarantor subsidiary Nancy Holdings LLC had no assets or operations prior to March 10, 2017. The following condensed consolidating financial information represents the financial information of the Company and its non-guarantor subsidiaries under the 2028 Debentures, prepared on the equity basis of accounting. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the non-guarantor subsidiaries operated as independent entities. January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 31,072 $ 4,716 $ — $ 35,788 Credit card receivables — 36,268 5,990 — 42,258 Merchandise inventories — 880,056 257,122 — 1,137,178 Other current assets — 127,745 15,857 (150 ) 143,452 Total current assets — 1,075,141 283,685 (150 ) 1,358,676 Property and equipment, net — 1,309,679 247,433 — 1,557,112 Intangible assets, net — 484,355 2,301,686 — 2,786,041 Goodwill — 1,338,844 548,885 — 1,887,729 Other long-term assets — 36,074 1,303 — 37,377 Investments in subsidiaries 839,014 3,204,672 — (4,043,686 ) — Total assets $ 839,014 $ 7,448,765 $ 3,382,992 $ (4,043,836 ) $ 7,626,935 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 259,837 $ 23,968 $ — $ 283,805 Accrued liabilities — 401,227 131,004 (150 ) 532,081 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 690,490 154,972 (150 ) 845,312 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,569,669 2,593 — 4,572,262 Deferred income taxes — 746,905 15,935 — 762,840 Other long-term liabilities — 602,687 4,820 — 607,507 Total long-term liabilities — 5,919,261 23,348 — 5,942,609 Total member equity 839,014 839,014 3,204,672 (4,043,686 ) 839,014 Total liabilities and member equity $ 839,014 $ 7,448,765 $ 3,382,992 $ (4,043,836 ) $ 7,626,935 July 29, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 28,301 $ 20,938 $ — $ 49,239 Credit card receivables — 35,091 3,745 — 38,836 Merchandise inventories — 915,910 237,747 — 1,153,657 Other current assets — 135,174 11,852 (587 ) 146,439 Total current assets — 1,114,476 274,282 (587 ) 1,388,171 Property and equipment, net — 1,333,487 253,474 — 1,586,961 Intangible assets, net — 509,757 2,321,659 — 2,831,416 Goodwill — 1,338,844 542,050 — 1,880,894 Other long-term assets — 14,384 1,690 — 16,074 Investments in subsidiaries 466,652 3,239,816 — (3,706,468 ) — Total assets $ 466,652 $ 7,550,764 $ 3,393,155 $ (3,707,055 ) $ 7,703,516 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 288,079 $ 28,751 $ — $ 316,830 Accrued liabilities — 350,773 106,751 (587 ) 456,937 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 668,278 135,502 (587 ) 803,193 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,675,540 — — 4,675,540 Deferred income taxes — 1,144,022 12,811 — 1,156,833 Other long-term liabilities — 596,272 5,026 — 601,298 Total long-term liabilities — 6,415,834 17,837 — 6,433,671 Total member equity 466,652 466,652 3,239,816 (3,706,468 ) 466,652 Total liabilities and member equity $ 466,652 $ 7,550,764 $ 3,393,155 $ (3,707,055 ) $ 7,703,516 January 28, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 42,960 $ 5,483 $ — $ 48,443 Credit card receivables — 33,156 4,281 — 37,437 Merchandise inventories — 961,538 251,945 — 1,213,483 Other current assets — 118,969 11,280 — 130,249 Total current assets — 1,156,623 272,989 — 1,429,612 Property and equipment, net — 1,448,157 152,659 — 1,600,816 Intangible assets, net — 536,532 2,499,696 — 3,036,228 Goodwill — 1,412,147 655,302 — 2,067,449 Other long-term assets — 20,507 1,973 — 22,480 Investments in subsidiaries 809,811 3,411,988 — (4,221,799 ) — Total assets $ 809,811 $ 7,985,954 $ 3,582,619 $ (4,221,799 ) $ 8,156,585 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 370,409 $ 13,739 $ — $ 384,148 Accrued liabilities — 365,610 144,019 — 509,629 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 765,445 157,758 — 923,203 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,585,911 — — 4,585,911 Deferred income taxes — 1,203,983 7,805 — 1,211,788 Other long-term liabilities — 620,804 5,068 — 625,872 Total long-term liabilities — 6,410,698 12,873 — 6,423,571 Total member equity 809,811 809,811 3,411,988 (4,221,799 ) 809,811 Total liabilities and member equity $ 809,811 $ 7,985,954 $ 3,582,619 $ (4,221,799 ) $ 8,156,585 Thirteen weeks ended January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,177,621 $ 304,497 $ — $ 1,482,118 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 814,745 209,311 — 1,024,056 Selling, general and administrative expenses (excluding depreciation) — 262,280 60,079 — 322,359 Income from credit card program — (12,621 ) (1,444 ) — (14,065 ) Depreciation expense — 47,267 6,161 — 53,428 Amortization of intangible assets and favorable lease commitments — 12,416 11,868 — 24,284 Other expenses (income) — 12,614 — — 12,614 Operating earnings (loss) — 40,920 18,522 — 59,442 Interest expense (income), net — 76,622 (73 ) — 76,549 Intercompany royalty charges (income) — 49,364 (49,364 ) — — Equity in loss (earnings) of subsidiaries (372,532 ) (66,776 ) — 439,308 — Earnings (loss) before income taxes 372,532 (18,290 ) 67,959 (439,308 ) (17,107 ) Income tax expense (benefit) — (390,822 ) 1,183 — (389,639 ) Net earnings (loss) $ 372,532 $ 372,532 $ 66,776 $ (439,308 ) $ 372,532 Total other comprehensive earnings (loss), net of tax 14,655 10,088 4,567 (14,655 ) 14,655 Total comprehensive earnings (loss) $ 387,187 $ 382,620 $ 71,343 $ (453,963 ) $ 387,187 Thirteen weeks ended January 28, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,131,021 $ 264,555 $ — $ 1,395,576 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 795,422 187,043 — 982,465 Selling, general and administrative expenses (excluding depreciation) — 254,906 52,812 — 307,718 Income from credit card program — (15,244 ) (1,506 ) — (16,750 ) Depreciation expense — 52,895 4,318 — 57,213 Amortization of intangible assets and favorable lease commitments — 13,643 12,681 — 26,324 Other expenses (income) — 4,564 647 — 5,211 Impairment charges — 153,772 — — 153,772 Operating earnings (loss) — (128,937 ) 8,560 — (120,377 ) Interest expense (income), net — 73,979 218 — 74,197 Intercompany royalty charges (income) — 42,440 (42,440 ) — — Equity in loss (earnings) of subsidiaries 117,069 (49,390 ) — (67,679 ) — Earnings (loss) before income taxes (117,069 ) (195,966 ) 50,782 67,679 (194,574 ) Income tax expense (benefit) — (78,897 ) 1,392 — (77,505 ) Net earnings (loss) $ (117,069 ) $ (117,069 ) $ 49,390 $ 67,679 $ (117,069 ) Total other comprehensive earnings (loss), net of tax 3,670 12,246 (8,576 ) (3,670 ) 3,670 Total comprehensive earnings (loss) $ (113,399 ) $ (104,823 ) $ 40,814 $ 64,009 $ (113,399 ) Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 2,027,767 $ 574,650 $ — $ 2,602,417 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 1,366,694 380,249 — 1,746,943 Selling, general and administrative expenses (excluding depreciation) — 499,345 118,294 — 617,639 Income from credit card program — (23,152 ) (2,777 ) — (25,929 ) Depreciation expense — 96,526 12,130 — 108,656 Amortization of intangible assets and favorable lease commitments — 25,401 23,832 — 49,233 Other expenses (income) — 15,454 — — 15,454 Operating earnings (loss) — 47,499 42,922 — 90,421 Interest expense, net — 152,752 (105 ) — 152,647 Intercompany royalty charges (income) — 88,797 (88,797 ) — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — 477,376 — Earnings (loss) before income taxes 346,315 (62,989 ) 131,824 (477,376 ) (62,226 ) Income tax expense (benefit) — (409,304 ) 763 — (408,541 ) Net earnings (loss) $ 346,315 $ 346,315 $ 131,061 $ (477,376 ) $ 346,315 Total other comprehensive earnings (loss), net of tax 25,052 14,331 10,721 (25,052 ) 25,052 Total comprehensive earnings (loss) $ 371,367 $ 360,646 $ 141,782 $ (502,428 ) $ 371,367 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,967,626 $ 507,057 $ — $ 2,474,683 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 1,339,960 342,400 — 1,682,360 Selling, general and administrative expenses (excluding depreciation) — 480,846 103,468 — 584,314 Income from credit card program — (27,673 ) (2,745 ) — (30,418 ) Depreciation expense — 105,081 9,016 — 114,097 Amortization of intangible assets and favorable lease commitments — 28,075 25,526 — 53,601 Other expenses (income) — 12,687 (658 ) — 12,029 Impairment charges — 153,772 — — 153,772 Operating earnings (loss) — (125,122 ) 30,050 — (95,072 ) Interest expense, net — 146,069 211 — 146,280 Intercompany royalty charges (income) — 76,444 (76,444 ) — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — (35,113 ) — Earnings (loss) before income taxes (140,582 ) (242,166 ) 106,283 35,113 (241,352 ) Income tax expense (benefit) — (101,584 ) 814 — (100,770 ) Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 105,469 $ 35,113 $ (140,582 ) Total other comprehensive earnings (loss), net of tax 4,640 10,720 (6,080 ) (4,640 ) 4,640 Total comprehensive earnings (loss) $ (135,942 ) $ (129,862 ) $ 99,389 $ 30,473 $ (135,942 ) Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS—OPERATING ACTIVITIES Net earnings (loss) $ 346,315 $ 346,315 $ 131,061 $ (477,376 ) $ 346,315 Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 134,165 35,962 — 170,127 Deferred income taxes (402,691 ) (290 ) — (402,981 ) Payment-in-kind interest — 29,289 — — 29,289 Other — 1,595 (2,401 ) — (806 ) Intercompany royalty income payable (receivable) — 88,797 (88,797 ) — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — 477,376 — Changes in operating assets and liabilities, net — 142,090 (88,490 ) 53,600 Net cash provided by (used for) operating activities — 208,499 (12,955 ) — 195,544 CASH FLOWS—INVESTING ACTIVITIES Capital expenditures — (59,417 ) (6,379 ) — (65,796 ) Net cash provided by (used for) investing activities — (59,417 ) (6,379 ) — (65,796 ) CASH FLOWS—FINANCING ACTIVITIES Borrowings under revolving credit facilities — 432,000 18,163 — 450,163 Repayment of borrowings — (577,713 ) (15,569 ) — (593,282 ) Repurchase of stock — (266 ) — — (266 ) Shares withheld for remittance of employee taxes — (332 ) — — (332 ) Net cash provided by (used for) financing activities — (146,311 ) 2,594 — (143,717 ) Effect of exchange rate changes on cash and cash equivalents — — 518 — 518 CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 2,771 (16,222 ) — (13,451 ) Beginning balance — 28,301 20,938 — 49,239 Ending balance $ — $ 31,072 $ 4,716 $ — $ 35,788 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Non- Eliminations Consolidated CASH FLOWS—OPERATING ACTIVITIES Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 105,469 $ 35,113 $ (140,582 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 145,420 34,542 — 179,962 Impairment charges — 153,772 — — 153,772 Deferred income taxes — (86,627 ) (2,747 ) — (89,374 ) Other — (1,943 ) 4,281 — 2,338 Intercompany royalty income payable (receivable) — 76,444 (76,444 ) — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — (35,113 ) — Changes in operating assets and liabilities, net — 76,232 (64,925 ) — 11,307 Net cash provided by (used for) operating activities — 117,247 176 — 117,423 CASH FLOWS—INVESTING ACTIVITIES Capital expenditures — (99,006 ) (16,692 ) — (115,698 ) Net cash provided by (used for) investing activities — (99,006 ) (16,692 ) — (115,698 ) CASH FLOWS—FINANCING ACTIVITIES Borrowings under revolving credit facilities — 385,000 — — 385,000 Repayment of borrowings — (394,713 ) — — (394,713 ) Debt issuance costs paid — (5,359 ) — — (5,359 ) Net cash provided by (used for) financing activities — (15,072 ) — — (15,072 ) Effect of exchange rate changes on cash and cash equivalents — — (53 ) — (53 ) CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 3,169 (16,569 ) — (13,400 ) Beginning balance — 39,791 22,052 — 61,843 Ending balance $ — $ 42,960 $ 5,483 $ — $ 48,443 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jan. 27, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The accompanying Condensed Consolidated Financial Statements set forth financial information of the Company and its subsidiaries on a consolidated basis. All significant intercompany accounts and transactions have been eliminated. |
Fiscal Period | Our fiscal year ends on the Saturday closest to July 31. Like many other retailers, we follow a 4-5-4 reporting calendar, which means that each fiscal quarter consists of thirteen weeks divided into periods of four weeks, five weeks and four weeks. All references to (i) the second quarter of fiscal year 2018 relate to the thirteen weeks ended January 27, 2018 , (ii) the second quarter of fiscal year 2017 relate to the thirteen weeks ended January 28, 2017 , (iii) year-to-date fiscal 2018 relate to the twenty-six weeks ended January 27, 2018 and (iv) year-to-date fiscal 2017 relate to the twenty-six weeks ended January 28, 2017 . |
Basis of Presentation | We have prepared the accompanying Condensed Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and Rule 10-01 of Regulation S-X of the Securities Act of 1933, as amended. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended July 29, 2017 . In our opinion, the accompanying Condensed Consolidated Financial Statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly our financial position, results of operations and cash flows for the applicable interim periods. |
Use of Estimates | Use of Estimates. We are required to make estimates and assumptions about future events in preparing our financial statements in conformity with GAAP. These estimates and assumptions affect the amounts of assets, liabilities, revenues and expenses and the disclosure of gain and loss contingencies at the date of the accompanying Condensed Consolidated Financial Statements. While we believe that our past estimates and assumptions have been materially accurate, the amounts currently estimated are subject to change if different assumptions as to the outcome of future events were made. We evaluate our estimates and assumptions on an ongoing basis and predicate those estimates and assumptions on historical experience and on various other factors that we believe are reasonable under the circumstances. We make adjustments to our estimates and assumptions when facts and circumstances dictate. Since future events and their effects cannot be determined with absolute certainty, actual results may differ from the estimates and assumptions used in preparing the accompanying Condensed Consolidated Financial Statements. We believe the following critical accounting policies, among others, encompass the more significant estimates, assumptions and judgments used in the preparation of the accompanying Condensed Consolidated Financial Statements: • recognition of revenues; • valuation of merchandise inventories, including determination of original retail values, recognition of markdowns and vendor allowances, estimation of inventory shrinkage and determination of cost of goods sold; • determination of impairment of intangible and long-lived assets; • measurement of liabilities related to our loyalty program; • recognition of income taxes; and • measurement of accruals for general liability, workers’ compensation and health insurance claims and pension and postretirement health care benefits. |
Segments | Segments. We conduct our specialty retail store and online operations on an omni-channel basis. As our store and online operations have similar economic characteristics, products, services and customers, our operations constitute a single omni-channel reportable segment. |
Newly Adopted And Recent Accounting Pronouncements | Newly Adopted Accounting Pronouncements. In March 2016, the Financial Accounting Standards Board ("the FASB") issued guidance to simplify how share-based payments are accounted for and presented in the financial statements, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard allows (i) entities to withhold an amount up to the employees' maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award and (ii) forfeitures to be either estimated, as required currently, or recognized when they occur. We adopted this guidance in the first quarter of fiscal year 2018. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements. Recent Accounting Pronouncements. In May 2014, the FASB issued guidance to clarify the principles for revenue recognition. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes previous revenue recognition guidance. While our evaluation of the impact of adopting this standard is ongoing, we believe the new guidance will impact our accounting for sales returns, our loyalty program and certain promotional programs. We intend to adopt this new guidance no earlier than the first quarter of fiscal year 2019. We are currently evaluating which application method to adopt. In May 2017, the FASB issued guidance to clarify which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard requires modification accounting only if changes in the terms or conditions result in changes of the fair value, the vesting conditions or the classification of the award as an equity instrument or a liability. This new guidance is effective for us as of the first quarter of fiscal year 2019 and will be applicable to any modification transactions subsequent to the effective date. In February 2016, the FASB issued guidance that requires a lessee to recognize assets and liabilities arising from leases on the balance sheet. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. Previous GAAP did not require lease assets and liabilities to be recognized for operating leases. Additionally, companies are permitted to make an accounting policy election not to recognize lease assets and liabilities for leases with a term of 12 months or less. For both finance leases and operating leases, the lease liability should be initially measured at the present value of the remaining contractual lease payments. We do not expect the recognition, measurement and presentation of expenses and cash flows arising from our operating leases to significantly change under this new guidance. This new guidance is effective for us as of the first quarter of fiscal year 2020. While we expect adoption to lead to a material increase in the assets and liabilities recorded on our Condensed Consolidated Balance Sheets and an increase to our footnote disclosures related to leases, we are still evaluating the impact on our Condensed Consolidated Statements of Operations. In August 2017, the FASB issued guidance to simplify how hedge accounting arrangements are accounted for and presented in the financial statements, including the assessment of hedge effectiveness. Under the new standard, all changes in the fair value of cash flow hedges included in the assessment of effectiveness will be recorded in other comprehensive income and reclassified to earnings in the same income statement line item when the hedged item affects earnings. This new guidance is effective for us as of the first quarter of fiscal year 2020. We are currently evaluating the impact of adopting this new accounting guidance on our Condensed Consolidated Financial Statements. |
Fair Value Measurements | The fair value of the interest rate swaps is estimated using industry standard valuation models using market-based observable inputs, including interest rate curves. The fair value of the contingent earn-out obligation incurred in connection with the acquisition of MyTheresa was estimated as of the acquisition date using a valuation model that measured the present value of the probable cash payments based upon the forecasted operating performance of MyTheresa and a discount rate that captured the risk associated with the obligation. We updated our assumptions based on new developments and adjusted the carrying value of the obligation to its estimated fair value at each reporting date. In March 2017, we paid $26.9 million , or €25.5 million , to the sellers related to calendar year 2016 (of which $22.9 million , or €18.1 million , represented the acquisition date fair value of the obligation). The Company has no further earn-out obligations. Because Parent is privately held and there is no public market for its common stock, the fair market value of Parent's common stock is determined by the Board of Directors of Parent (the "Parent Board") or the Compensation Committee, as applicable. In determining the fair market value of Parent's common stock, the Parent Board or the Compensation Committee, as applicable, considers such factors as any recent transactions involving Parent's common stock, the Company’s actual and projected financial results, the principal amount of the Company’s indebtedness, valuations of the Company performed by third parties and other factors it believes are material to the valuation process. Significant inputs to the common stock valuation model are updated as applicable and the carrying value of the obligation is adjusted to its estimated fair value at each reporting date. Certain of our assets and liabilities are required to be measured at fair value on a recurring basis. Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. Assets and liabilities are classified using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows: • Level 1 — Unadjusted quoted prices for identical instruments traded in active markets. • Level 2 — Observable market-based inputs or unobservable inputs corroborated by market data. • Level 3 — Unobservable inputs reflecting management’s estimates and assumptions. |
Indefinite-lived Intangible Assets and Goodwill | Indefinite-lived Intangible Assets and Goodwill. Indefinite-lived intangible assets, such as our Neiman Marcus, Bergdorf Goodman and MyTheresa tradenames and goodwill, are not subject to amortization. Rather, we assess the recoverability of indefinite-lived intangible assets and goodwill annually in the fourth quarter of each fiscal year and upon the occurrence of certain events. These impairment assessments are performed for each of our three reporting units — Neiman Marcus, Bergdorf Goodman and MyTheresa. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Company's financial assets and liabilities that are required to be measured at fair value on a recurring basis | The following table shows the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis in our Condensed Consolidated Balance Sheets: (in thousands) Fair Value Hierarchy January 27, July 29, January 28, Assets: Interest rate swaps (included in other long-term assets) Level 2 $ 25,996 $ 3,628 $ 8,960 Liabilities: Contingent earn-out obligation (included in accrued liabilities) Level 3 — — 24,520 Stock-based award liability (included in other long-term liabilities) Level 3 5,643 1,344 3,269 |
Schedule of fair value of long-term debt determined on a non-recurring basis | We determine the fair value of our long-term debt on a non-recurring basis, which results are summarized as follows: January 27, 2018 July 29, 2017 January 28, 2017 (in thousands) Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Long-term debt: Asset-Based Revolving Credit Facility Level 2 $ 132,000 $ 132,000 $ 263,000 $ 263,000 $ 170,000 $ 170,000 mytheresa.com Credit Facilities Level 2 2,593 2,593 — — — — Senior Secured Term Loan Facility Level 2 2,824,920 2,395,899 2,839,633 2,113,766 2,854,346 2,392,313 Cash Pay Notes Level 2 960,000 613,565 960,000 532,253 960,000 625,680 PIK Toggle Notes Level 2 628,500 373,958 600,000 297,000 600,000 367,500 2028 Debentures Level 2 122,783 90,831 122,677 87,490 122,570 103,985 |
Intangible Assets, Net and Go24
Intangible Assets, Net and Goodwill (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets, net and goodwill | (in thousands) January 27, July 29, January 28, Favorable lease commitments, net $ 905,016 $ 930,585 $ 956,959 Other definite-lived intangible assets, net 377,652 401,081 424,975 Tradenames 1,503,373 1,499,750 1,654,294 Intangible assets, net $ 2,786,041 $ 2,831,416 $ 3,036,228 Goodwill $ 1,887,729 $ 1,880,894 $ 2,067,449 |
Schedule of estimated amortization of all intangible assets recorded in connection with the acquisition | Total amortization of all intangible assets recorded in connection with acquisitions for the current and next five fiscal years is currently estimated as follows (in thousands): January 28, 2018 through July 28, 2018 $ 48,511 2019 95,003 2020 88,306 2021 82,301 2022 82,450 2023 81,305 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of significant components of long-term debt | The significant components of our long-term debt are as follows: (in thousands) Interest Rate January 27, July 29, January 28, Asset-Based Revolving Credit Facility variable $ 132,000 $ 263,000 $ 170,000 mytheresa.com Credit Facilities 2.25%/2.39% 2,593 — — Senior Secured Term Loan Facility variable 2,824,920 2,839,633 2,854,346 Cash Pay Notes 8.00% 960,000 960,000 960,000 PIK Toggle Notes 8.75%/9.50% 628,500 600,000 600,000 2028 Debentures 7.125% 122,783 122,677 122,570 Total debt 4,670,796 4,785,310 4,706,916 Less: current portion of Senior Secured Term Loan Facility (29,426 ) (29,426 ) (29,426 ) Less: unamortized debt issuance costs (69,108 ) (80,344 ) (91,579 ) Long-term debt, net of debt issuance costs $ 4,572,262 $ 4,675,540 $ 4,585,911 |
Schedule of annual maturities of long-term debt outstanding during the current and next five fiscal years and thereafter | At January 27, 2018 , annual maturities of long-term debt during the current and next five fiscal years and thereafter are as follows (in millions): January 28, 2018 through July 28, 2018 $ 14.7 2019 29.4 2020 29.4 2021 2,883.4 2022 1,588.5 2023 — Thereafter 125.4 |
Schedule of significant components of interest expense | The significant components of interest expense are as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, January 28, January 27, January 28, Asset-Based Revolving Credit Facility $ 1,483 $ 1,366 $ 3,796 $ 2,570 mytheresa.com Credit Facilities 21 28 42 43 Senior Secured Term Loan Facility 33,814 32,815 67,232 64,259 Cash Pay Notes 19,200 19,200 38,400 38,400 PIK Toggle Notes 14,927 13,125 29,289 26,250 2028 Debentures 2,226 2,226 4,453 4,453 Amortization of debt issue costs 6,121 6,121 12,238 12,264 Capitalized interest (1,841 ) (1,529 ) (3,564 ) (3,244 ) Other, net 598 845 761 1,285 Interest expense, net $ 76,549 $ 74,197 $ 152,647 $ 146,280 |
Derivative Financial Instrume26
Derivative Financial Instruments Derivative Financial Instruments (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | A summary of the recorded amounts related to our interest rate swaps and interest rate caps reflected in our Condensed Consolidated Statements of Operations is as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, January 28, January 27, January 28, Realized hedging losses related to interest rate swaps – included in net interest expense $ 1,033 $ 694 $ 2,272 $ 694 Realized hedging losses related to interest rate caps – included in net interest expense — 833 — 1,424 Total $ 1,033 $ 1,527 $ 2,272 $ 2,118 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate | Our effective income tax rates are as follows: Thirteen weeks ended Twenty-six weeks ended January 27, January 28, January 27, January 28, Effective income tax rate excluding impact of Tax Reform 32.3 % 39.8 % 39.2 % 41.8 % Impact of Tax Reform 2,245.4 % — % 617.3 % — % Effective income tax rate 2,277.7 % 39.8 % 656.5 % 41.8 % |
Employee Benefit (Tables)
Employee Benefit (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of obligations for employee benefit plans included in other long-term liabilities | Our obligations for employee benefit plans, included in other long-term liabilities, are as follows: (in thousands) January 27, July 29, January 28, Pension Plan $ 230,606 $ 240,737 $ 300,543 SERP Plan 111,093 112,739 119,807 Postretirement Plan 6,388 6,916 8,220 348,087 360,392 428,570 Less: current portion (6,679 ) (7,803 ) (6,553 ) Long-term portion of benefit obligations $ 341,408 $ 352,589 $ 422,017 |
Schedule of components of the expenses incurred | The components of the expenses we incurred under our Pension Plan, SERP Plan and Postretirement Plan are as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, January 28, January 27, January 28, Pension Plan: Interest cost $ 4,973 $ 4,870 $ 9,946 $ 9,740 Expected return on plan assets (5,396 ) (5,331 ) (10,792 ) (10,662 ) Net amortization of losses 170 663 340 1,326 Pension Plan expense (income) $ (253 ) $ 202 $ (506 ) $ 404 SERP Plan: Interest cost $ 844 $ 784 $ 1,688 $ 1,568 Net amortization of losses — 23 — 46 SERP Plan expense $ 844 $ 807 $ 1,688 $ 1,614 Postretirement Plan: Interest cost $ 51 $ 55 $ 102 $ 110 Net amortization of gains (180 ) (146 ) (360 ) (292 ) Postretirement Plan income $ (129 ) $ (91 ) $ (258 ) $ (182 ) |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Summary of the changes in accumulated other comprehensive loss by component | The following table summarizes the changes in accumulated other comprehensive loss by component (amounts are recorded net of related income taxes): (in thousands) Foreign Currency Translation Adjustments Unrealized Gains on Financial Instruments Unfunded Benefit Obligations Total Balance, July 29, 2017 $ (11,600 ) $ 3,394 $ (55,225 ) $ (63,431 ) Other comprehensive earnings 6,154 3,129 360 9,643 Amounts reclassified from accumulated other comprehensive loss — 754 — 754 Balance, October 28, 2017 $ (5,446 ) $ 7,277 $ (54,865 ) $ (53,034 ) Other comprehensive earnings (loss) 4,567 9,449 (6 ) 14,010 Amounts reclassified from accumulated other comprehensive loss — 645 — 645 Balance, January 27, 2018 $ (879 ) $ 17,371 $ (54,871 ) $ (38,379 ) |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock option activity | The following table sets forth certain summary information with respect to our stock options for the periods indicated: Twenty-six weeks ended January 27, 2018 (in actuals) Shares Weighted Outstanding at July 29, 2017 196,416 $ 854 Granted 44,206 489 Exercised (974 ) 180 Cancelled (40,406 ) 467 Forfeited (14,183 ) 1,004 Expired (2,274 ) 346 Outstanding at January 27, 2018 182,785 $ 727 |
Summary of restricted stock | At January 27, 2018 , 12,239 shares of unvested restricted common stock were outstanding. The recorded liability with respect to such shares was $0.3 million at January 27, 2018 and $1.2 million at July 29, 2017. Twenty-six weeks ended January 27, 2018 (in actuals) Shares Weighted Grant Date Fair Value Outstanding at July 29, 2017 21,355 $ 768 Vested (5,210 ) 768 Forfeited (3,906 ) 768 Outstanding at January 27, 2018 12,239 $ 768 |
Schedule of stock based compensation expense | The following table summarizes our stock-based compensation expense: Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, January 28, January 27, January 28, Stock compensation expense: Stock options $ 1,153 $ (1,704 ) $ 5,406 $ (323 ) Restricted stock 180 840 486 840 Total $ 1,333 $ (864 ) $ 5,892 $ 517 |
Other Expenses (Tables)
Other Expenses (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Other Expenses [Abstract] | |
Schedule of other expenses | Other expenses consists of the following components: Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, January 28, January 27, January 28, Expenses related to store closures $ 6,602 $ 1,495 $ 7,920 $ 1,495 Expenses incurred in connection with strategic initiatives 1,388 1,932 1,810 8,485 Expenses related to Cyber-Attack, net of insurance recoveries — — 1,100 — MyTheresa acquisition costs — 1,317 — 702 Other expenses 4,624 467 4,624 1,347 Total $ 12,614 $ 5,211 $ 15,454 $ 12,029 |
Condensed Consolidating Finan32
Condensed Consolidating Financial Information (with respect to NMG's obligations under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes) (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of condensed balance sheets | (in thousands) January 27, 2018 July 29, 2017 Total assets $ 441,609 $ 415,974 Net assets 151,079 137,661 January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 31,072 $ 854 $ 3,862 $ — $ 35,788 Credit card receivables — 36,268 — 5,990 — 42,258 Merchandise inventories — 880,056 143,328 113,794 — 1,137,178 Other current assets — 127,745 10,943 4,914 (150 ) 143,452 Total current assets — 1,075,141 155,125 128,560 (150 ) 1,358,676 Property and equipment, net — 1,309,679 144,226 103,207 — 1,557,112 Intangible assets, net — 484,355 2,226,259 75,427 — 2,786,041 Goodwill — 1,338,844 414,402 134,483 — 1,887,729 Other long-term assets — 36,074 1,303 — — 37,377 Investments in subsidiaries 839,014 3,204,672 — — (4,043,686 ) — Total assets $ 839,014 $ 7,448,765 $ 2,941,315 $ 441,677 $ (4,043,836 ) $ 7,626,935 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 259,837 $ — $ 23,968 $ — $ 283,805 Accrued liabilities — 401,227 90,613 40,391 (150 ) 532,081 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 690,490 90,613 64,359 (150 ) 845,312 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,569,669 — 2,593 — 4,572,262 Deferred income taxes — 746,905 — 15,935 — 762,840 Other long-term liabilities — 602,687 5,413 (593 ) — 607,507 Total long-term liabilities — 5,919,261 5,413 17,935 — 5,942,609 Total member equity 839,014 839,014 2,845,289 359,383 (4,043,686 ) 839,014 Total liabilities and member equity $ 839,014 $ 7,448,765 $ 2,941,315 $ 441,677 $ (4,043,836 ) $ 7,626,935 July 29, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 28,301 $ 649 $ 20,289 $ — $ 49,239 Credit card receivables — 35,091 — 3,745 — 38,836 Merchandise inventories — 915,910 151,193 86,554 — 1,153,657 Other current assets — 135,174 9,956 1,896 (587 ) 146,439 Total current assets — 1,114,476 161,798 112,484 (587 ) 1,388,171 Property and equipment, net — 1,333,487 149,932 103,542 — 1,586,961 Intangible assets, net — 509,757 2,249,290 72,369 — 2,831,416 Goodwill — 1,338,844 414,402 127,648 — 1,880,894 Other long-term assets — 14,384 1,690 — — 16,074 Investments in subsidiaries 466,652 3,239,816 — — (3,706,468 ) — Total assets $ 466,652 $ 7,550,764 $ 2,977,112 $ 416,043 $ (3,707,055 ) $ 7,703,516 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 288,079 $ — $ 28,751 $ — $ 316,830 Accrued liabilities — 350,773 74,832 31,919 (587 ) 456,937 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 668,278 74,832 60,670 (587 ) 803,193 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,675,540 — — — 4,675,540 Deferred income taxes — 1,144,022 — 12,811 — 1,156,833 Other long-term liabilities — 596,272 5,379 (353 ) — 601,298 Total long-term liabilities — 6,415,834 5,379 12,458 — 6,433,671 Total member equity 466,652 466,652 2,896,901 342,915 (3,706,468 ) 466,652 Total liabilities and member equity $ 466,652 $ 7,550,764 $ 2,977,112 $ 416,043 $ (3,707,055 ) $ 7,703,516 January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 42,960 $ 596 $ 4,887 $ — $ 48,443 Credit card receivables — 33,156 — 4,281 — 37,437 Merchandise inventories — 961,538 173,570 78,375 — 1,213,483 Other current assets 118,969 11,939 2,219 (2,878 ) 130,249 Total current assets — 1,156,623 186,105 89,762 (2,878 ) 1,429,612 Property and equipment, net — 1,448,157 146,969 5,690 — 1,600,816 Intangible assets, net — 536,532 2,432,057 67,639 — 3,036,228 Goodwill — 1,412,147 537,263 118,039 — 2,067,449 Other long-term assets — 20,507 1,973 — — 22,480 Intercompany notes receivable — — 199,460 — (199,460 ) — Investments in subsidiaries 809,811 3,411,988 — — (4,221,799 ) — Total assets $ 809,811 $ 7,985,954 $ 3,503,827 $ 281,130 $ (4,424,137 ) $ 8,156,585 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 370,409 $ — $ 13,739 $ — $ 384,148 Accrued liabilities — 365,610 89,725 57,172 (2,878 ) 509,629 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 765,445 89,725 70,911 (2,878 ) 923,203 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,585,911 — — — 4,585,911 Intercompany notes payable — — — 199,460 (199,460 ) — Deferred income taxes — 1,203,983 — 7,805 — 1,211,788 Other long-term liabilities — 620,804 5,068 — — 625,872 Total long-term liabilities — 6,410,698 5,068 207,265 (199,460 ) 6,423,571 Total member equity 809,811 809,811 3,409,034 2,954 (4,221,799 ) 809,811 Total liabilities and member equity $ 809,811 $ 7,985,954 $ 3,503,827 $ 281,130 $ (4,424,137 ) $ 8,156,585 January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 31,072 $ 4,716 $ — $ 35,788 Credit card receivables — 36,268 5,990 — 42,258 Merchandise inventories — 880,056 257,122 — 1,137,178 Other current assets — 127,745 15,857 (150 ) 143,452 Total current assets — 1,075,141 283,685 (150 ) 1,358,676 Property and equipment, net — 1,309,679 247,433 — 1,557,112 Intangible assets, net — 484,355 2,301,686 — 2,786,041 Goodwill — 1,338,844 548,885 — 1,887,729 Other long-term assets — 36,074 1,303 — 37,377 Investments in subsidiaries 839,014 3,204,672 — (4,043,686 ) — Total assets $ 839,014 $ 7,448,765 $ 3,382,992 $ (4,043,836 ) $ 7,626,935 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 259,837 $ 23,968 $ — $ 283,805 Accrued liabilities — 401,227 131,004 (150 ) 532,081 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 690,490 154,972 (150 ) 845,312 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,569,669 2,593 — 4,572,262 Deferred income taxes — 746,905 15,935 — 762,840 Other long-term liabilities — 602,687 4,820 — 607,507 Total long-term liabilities — 5,919,261 23,348 — 5,942,609 Total member equity 839,014 839,014 3,204,672 (4,043,686 ) 839,014 Total liabilities and member equity $ 839,014 $ 7,448,765 $ 3,382,992 $ (4,043,836 ) $ 7,626,935 July 29, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 28,301 $ 20,938 $ — $ 49,239 Credit card receivables — 35,091 3,745 — 38,836 Merchandise inventories — 915,910 237,747 — 1,153,657 Other current assets — 135,174 11,852 (587 ) 146,439 Total current assets — 1,114,476 274,282 (587 ) 1,388,171 Property and equipment, net — 1,333,487 253,474 — 1,586,961 Intangible assets, net — 509,757 2,321,659 — 2,831,416 Goodwill — 1,338,844 542,050 — 1,880,894 Other long-term assets — 14,384 1,690 — 16,074 Investments in subsidiaries 466,652 3,239,816 — (3,706,468 ) — Total assets $ 466,652 $ 7,550,764 $ 3,393,155 $ (3,707,055 ) $ 7,703,516 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 288,079 $ 28,751 $ — $ 316,830 Accrued liabilities — 350,773 106,751 (587 ) 456,937 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 668,278 135,502 (587 ) 803,193 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,675,540 — — 4,675,540 Deferred income taxes — 1,144,022 12,811 — 1,156,833 Other long-term liabilities — 596,272 5,026 — 601,298 Total long-term liabilities — 6,415,834 17,837 — 6,433,671 Total member equity 466,652 466,652 3,239,816 (3,706,468 ) 466,652 Total liabilities and member equity $ 466,652 $ 7,550,764 $ 3,393,155 $ (3,707,055 ) $ 7,703,516 January 28, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 42,960 $ 5,483 $ — $ 48,443 Credit card receivables — 33,156 4,281 — 37,437 Merchandise inventories — 961,538 251,945 — 1,213,483 Other current assets — 118,969 11,280 — 130,249 Total current assets — 1,156,623 272,989 — 1,429,612 Property and equipment, net — 1,448,157 152,659 — 1,600,816 Intangible assets, net — 536,532 2,499,696 — 3,036,228 Goodwill — 1,412,147 655,302 — 2,067,449 Other long-term assets — 20,507 1,973 — 22,480 Investments in subsidiaries 809,811 3,411,988 — (4,221,799 ) — Total assets $ 809,811 $ 7,985,954 $ 3,582,619 $ (4,221,799 ) $ 8,156,585 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 370,409 $ 13,739 $ — $ 384,148 Accrued liabilities — 365,610 144,019 — 509,629 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 765,445 157,758 — 923,203 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,585,911 — — 4,585,911 Deferred income taxes — 1,203,983 7,805 — 1,211,788 Other long-term liabilities — 620,804 5,068 — 625,872 Total long-term liabilities — 6,410,698 12,873 — 6,423,571 Total member equity 809,811 809,811 3,411,988 (4,221,799 ) 809,811 Total liabilities and member equity $ 809,811 $ 7,985,954 $ 3,582,619 $ (4,221,799 ) $ 8,156,585 |
Schedule of condensed statements of operations | Thirteen weeks ended January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,177,621 $ 215,790 $ 88,707 $ — $ 1,482,118 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 814,745 153,024 56,287 — 1,024,056 Selling, general and administrative expenses (excluding depreciation) — 262,280 36,450 23,629 — 322,359 Income from credit card program — (12,621 ) (1,444 ) — — (14,065 ) Depreciation expense — 47,267 4,163 1,998 — 53,428 Amortization of intangible assets and favorable lease commitments — 12,416 11,468 400 — 24,284 Other expenses (income) — 12,614 — — — 12,614 Operating earnings (loss) — 40,920 12,129 6,393 — 59,442 Interest expense (income), net — 76,622 — (73 ) — 76,549 Intercompany royalty charges (income) — 49,364 (49,364 ) — — — Equity in loss (earnings) of subsidiaries (372,532 ) (66,776 ) — — 439,308 — Earnings (loss) before income taxes 372,532 (18,290 ) 61,493 6,466 (439,308 ) (17,107 ) Income tax expense (benefit) — (390,822 ) — 1,183 — (389,639 ) Net earnings (loss) $ 372,532 $ 372,532 $ 61,493 $ 5,283 $ (439,308 ) $ 372,532 Total other comprehensive earnings (loss), net of tax 14,655 10,088 — 4,567 (14,655 ) 14,655 Total comprehensive earnings (loss) $ 387,187 $ 382,620 $ 61,493 $ 9,850 $ (453,963 ) $ 387,187 Thirteen weeks ended January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,131,021 $ 201,598 $ 62,957 $ — $ 1,395,576 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 795,422 148,810 38,233 — 982,465 Selling, general and administrative expenses (excluding depreciation) — 254,906 35,746 17,066 — 307,718 Income from credit card program — (15,244 ) (1,506 ) — — (16,750 ) Depreciation expense — 52,895 4,025 293 — 57,213 Amortization of intangible assets and favorable lease commitments — 13,643 11,564 1,117 — 26,324 Other expenses (income) — 4,564 — 647 — 5,211 Impairment charges — 153,772 — — — 153,772 Operating earnings (loss) — (128,937 ) 2,959 5,601 — (120,377 ) Interest expense (income), net — 73,979 (1,446 ) 1,664 — 74,197 Intercompany royalty charges (income) — 42,440 (42,440 ) — — — Equity in loss (earnings) of subsidiaries 117,069 (49,390 ) — — (67,679 ) — Earnings (loss) before income taxes (117,069 ) (195,966 ) 46,845 3,937 67,679 (194,574 ) Income tax expense (benefit) — (78,897 ) — 1,392 — (77,505 ) Net earnings (loss) $ (117,069 ) $ (117,069 ) $ 46,845 $ 2,545 $ 67,679 $ (117,069 ) Total other comprehensive earnings (loss), net of tax 3,670 12,246 — (8,576 ) (3,670 ) 3,670 Total comprehensive earnings (loss) $ (113,399 ) $ (104,823 ) $ 46,845 $ (6,031 ) $ 64,009 $ (113,399 ) Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 Revenues $ 88,707 $ 62,957 $ 162,801 $ 120,395 Net earnings (loss) 3,758 2,544 4,139 3,857 Thirteen weeks ended January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,177,621 $ 304,497 $ — $ 1,482,118 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 814,745 209,311 — 1,024,056 Selling, general and administrative expenses (excluding depreciation) — 262,280 60,079 — 322,359 Income from credit card program — (12,621 ) (1,444 ) — (14,065 ) Depreciation expense — 47,267 6,161 — 53,428 Amortization of intangible assets and favorable lease commitments — 12,416 11,868 — 24,284 Other expenses (income) — 12,614 — — 12,614 Operating earnings (loss) — 40,920 18,522 — 59,442 Interest expense (income), net — 76,622 (73 ) — 76,549 Intercompany royalty charges (income) — 49,364 (49,364 ) — — Equity in loss (earnings) of subsidiaries (372,532 ) (66,776 ) — 439,308 — Earnings (loss) before income taxes 372,532 (18,290 ) 67,959 (439,308 ) (17,107 ) Income tax expense (benefit) — (390,822 ) 1,183 — (389,639 ) Net earnings (loss) $ 372,532 $ 372,532 $ 66,776 $ (439,308 ) $ 372,532 Total other comprehensive earnings (loss), net of tax 14,655 10,088 4,567 (14,655 ) 14,655 Total comprehensive earnings (loss) $ 387,187 $ 382,620 $ 71,343 $ (453,963 ) $ 387,187 Thirteen weeks ended January 28, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,131,021 $ 264,555 $ — $ 1,395,576 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 795,422 187,043 — 982,465 Selling, general and administrative expenses (excluding depreciation) — 254,906 52,812 — 307,718 Income from credit card program — (15,244 ) (1,506 ) — (16,750 ) Depreciation expense — 52,895 4,318 — 57,213 Amortization of intangible assets and favorable lease commitments — 13,643 12,681 — 26,324 Other expenses (income) — 4,564 647 — 5,211 Impairment charges — 153,772 — — 153,772 Operating earnings (loss) — (128,937 ) 8,560 — (120,377 ) Interest expense (income), net — 73,979 218 — 74,197 Intercompany royalty charges (income) — 42,440 (42,440 ) — — Equity in loss (earnings) of subsidiaries 117,069 (49,390 ) — (67,679 ) — Earnings (loss) before income taxes (117,069 ) (195,966 ) 50,782 67,679 (194,574 ) Income tax expense (benefit) — (78,897 ) 1,392 — (77,505 ) Net earnings (loss) $ (117,069 ) $ (117,069 ) $ 49,390 $ 67,679 $ (117,069 ) Total other comprehensive earnings (loss), net of tax 3,670 12,246 (8,576 ) (3,670 ) 3,670 Total comprehensive earnings (loss) $ (113,399 ) $ (104,823 ) $ 40,814 $ 64,009 $ (113,399 ) |
Schedule of condensed statements of cash flows | Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS - OPERATING ACTIVITIES Net earnings (loss) $ 346,315 $ 346,315 $ 123,872 $ 7,189 $ (477,376 ) $ 346,315 Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 134,165 31,187 4,775 — 170,127 Deferred income taxes — (402,691 ) — (290 ) — (402,981 ) Payment-in-kind interest — 29,289 — — — 29,289 Other — 1,595 420 (2,821 ) — (806 ) Intercompany royalty income payable (receivable) — 88,797 (88,797 ) — — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — — 477,376 — Changes in operating assets and liabilities, net — 142,090 (63,245 ) (25,245 ) — 53,600 Net cash provided by (used for) operating activities — 208,499 3,437 (16,392 ) — 195,544 CASH FLOWS - INVESTING ACTIVITIES Capital expenditures — (59,417 ) (3,232 ) (3,147 ) — (65,796 ) Net cash provided by (used for) investing activities — (59,417 ) (3,232 ) (3,147 ) — (65,796 ) CASH FLOWS - FINANCING ACTIVITIES Borrowings under revolving credit facilities — 432,000 — 18,163 — 450,163 Repayment of borrowings — (577,713 ) — (15,569 ) — (593,282 ) Repurchase of stock — (266 ) — — — (266 ) Shares withheld for remittance of employee taxes — (332 ) — — — (332 ) Net cash provided by (used for) financing activities — (146,311 ) — 2,594 — (143,717 ) Effect of exchange rate changes on cash and cash equivalents — — — 518 — 518 CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 2,771 205 (16,427 ) — (13,451 ) Beginning balance — 28,301 649 20,289 — 49,239 Ending balance $ — $ 31,072 $ 854 $ 3,862 $ — $ 35,788 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS - OPERATING ACTIVITIES Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 101,615 $ 3,854 $ 35,113 $ (140,582 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 145,420 31,696 2,846 — 179,962 Impairment charges — 153,772 — — — 153,772 Deferred income taxes — (86,627 ) — (2,747 ) — (89,374 ) Other — (1,943 ) (1,075 ) 5,356 — 2,338 Intercompany royalty income payable (receivable) — 76,444 (76,444 ) — — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — — (35,113 ) — Changes in operating assets and liabilities, net — 76,232 (42,860 ) (22,065 ) — 11,307 Net cash provided by (used for) operating activities — 117,247 12,932 (12,756 ) — 117,423 CASH FLOWS - INVESTING ACTIVITIES Capital expenditures — (99,006 ) (13,272 ) (3,420 ) — (115,698 ) Net cash provided by (used for) investing activities — (99,006 ) (13,272 ) (3,420 ) — (115,698 ) CASH FLOWS - FINANCING ACTIVITIES Borrowings under revolving credit facilities — 385,000 — — — 385,000 Repayment of borrowings — (394,713 ) — — — (394,713 ) Debt issuance costs paid — (5,359 ) — — — (5,359 ) Net cash provided (used for) by financing activities — (15,072 ) — — — (15,072 ) Effect of exchange rate changes on cash and cash equivalents — — — (53 ) — (53 ) CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 3,169 (340 ) (16,229 ) — (13,400 ) Beginning balance — 39,791 936 21,116 — 61,843 Ending balance $ — $ 42,960 $ 596 $ 4,887 $ — $ 48,443 Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS—OPERATING ACTIVITIES Net earnings (loss) $ 346,315 $ 346,315 $ 131,061 $ (477,376 ) $ 346,315 Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 134,165 35,962 — 170,127 Deferred income taxes (402,691 ) (290 ) — (402,981 ) Payment-in-kind interest — 29,289 — — 29,289 Other — 1,595 (2,401 ) — (806 ) Intercompany royalty income payable (receivable) — 88,797 (88,797 ) — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — 477,376 — Changes in operating assets and liabilities, net — 142,090 (88,490 ) 53,600 Net cash provided by (used for) operating activities — 208,499 (12,955 ) — 195,544 CASH FLOWS—INVESTING ACTIVITIES Capital expenditures — (59,417 ) (6,379 ) — (65,796 ) Net cash provided by (used for) investing activities — (59,417 ) (6,379 ) — (65,796 ) CASH FLOWS—FINANCING ACTIVITIES Borrowings under revolving credit facilities — 432,000 18,163 — 450,163 Repayment of borrowings — (577,713 ) (15,569 ) — (593,282 ) Repurchase of stock — (266 ) — — (266 ) Shares withheld for remittance of employee taxes — (332 ) — — (332 ) Net cash provided by (used for) financing activities — (146,311 ) 2,594 — (143,717 ) Effect of exchange rate changes on cash and cash equivalents — — 518 — 518 CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 2,771 (16,222 ) — (13,451 ) Beginning balance — 28,301 20,938 — 49,239 Ending balance $ — $ 31,072 $ 4,716 $ — $ 35,788 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Non- Eliminations Consolidated CASH FLOWS—OPERATING ACTIVITIES Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 105,469 $ 35,113 $ (140,582 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 145,420 34,542 — 179,962 Impairment charges — 153,772 — — 153,772 Deferred income taxes — (86,627 ) (2,747 ) — (89,374 ) Other — (1,943 ) 4,281 — 2,338 Intercompany royalty income payable (receivable) — 76,444 (76,444 ) — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — (35,113 ) — Changes in operating assets and liabilities, net — 76,232 (64,925 ) — 11,307 Net cash provided by (used for) operating activities — 117,247 176 — 117,423 CASH FLOWS—INVESTING ACTIVITIES Capital expenditures — (99,006 ) (16,692 ) — (115,698 ) Net cash provided by (used for) investing activities — (99,006 ) (16,692 ) — (115,698 ) CASH FLOWS—FINANCING ACTIVITIES Borrowings under revolving credit facilities — 385,000 — — 385,000 Repayment of borrowings — (394,713 ) — — (394,713 ) Debt issuance costs paid — (5,359 ) — — (5,359 ) Net cash provided by (used for) financing activities — (15,072 ) — — (15,072 ) Effect of exchange rate changes on cash and cash equivalents — — (53 ) — (53 ) CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 3,169 (16,569 ) — (13,400 ) Beginning balance — 39,791 22,052 — 61,843 Ending balance $ — $ 42,960 $ 5,483 $ — $ 48,443 |
Condensed Consolidating Finan33
Condensed Consolidating Financial Information (with respect to NMG's obligations under the 2028 Debentures) (Tables) | 6 Months Ended |
Jan. 27, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of condensed balance sheets | (in thousands) January 27, 2018 July 29, 2017 Total assets $ 441,609 $ 415,974 Net assets 151,079 137,661 January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 31,072 $ 854 $ 3,862 $ — $ 35,788 Credit card receivables — 36,268 — 5,990 — 42,258 Merchandise inventories — 880,056 143,328 113,794 — 1,137,178 Other current assets — 127,745 10,943 4,914 (150 ) 143,452 Total current assets — 1,075,141 155,125 128,560 (150 ) 1,358,676 Property and equipment, net — 1,309,679 144,226 103,207 — 1,557,112 Intangible assets, net — 484,355 2,226,259 75,427 — 2,786,041 Goodwill — 1,338,844 414,402 134,483 — 1,887,729 Other long-term assets — 36,074 1,303 — — 37,377 Investments in subsidiaries 839,014 3,204,672 — — (4,043,686 ) — Total assets $ 839,014 $ 7,448,765 $ 2,941,315 $ 441,677 $ (4,043,836 ) $ 7,626,935 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 259,837 $ — $ 23,968 $ — $ 283,805 Accrued liabilities — 401,227 90,613 40,391 (150 ) 532,081 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 690,490 90,613 64,359 (150 ) 845,312 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,569,669 — 2,593 — 4,572,262 Deferred income taxes — 746,905 — 15,935 — 762,840 Other long-term liabilities — 602,687 5,413 (593 ) — 607,507 Total long-term liabilities — 5,919,261 5,413 17,935 — 5,942,609 Total member equity 839,014 839,014 2,845,289 359,383 (4,043,686 ) 839,014 Total liabilities and member equity $ 839,014 $ 7,448,765 $ 2,941,315 $ 441,677 $ (4,043,836 ) $ 7,626,935 July 29, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 28,301 $ 649 $ 20,289 $ — $ 49,239 Credit card receivables — 35,091 — 3,745 — 38,836 Merchandise inventories — 915,910 151,193 86,554 — 1,153,657 Other current assets — 135,174 9,956 1,896 (587 ) 146,439 Total current assets — 1,114,476 161,798 112,484 (587 ) 1,388,171 Property and equipment, net — 1,333,487 149,932 103,542 — 1,586,961 Intangible assets, net — 509,757 2,249,290 72,369 — 2,831,416 Goodwill — 1,338,844 414,402 127,648 — 1,880,894 Other long-term assets — 14,384 1,690 — — 16,074 Investments in subsidiaries 466,652 3,239,816 — — (3,706,468 ) — Total assets $ 466,652 $ 7,550,764 $ 2,977,112 $ 416,043 $ (3,707,055 ) $ 7,703,516 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 288,079 $ — $ 28,751 $ — $ 316,830 Accrued liabilities — 350,773 74,832 31,919 (587 ) 456,937 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 668,278 74,832 60,670 (587 ) 803,193 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,675,540 — — — 4,675,540 Deferred income taxes — 1,144,022 — 12,811 — 1,156,833 Other long-term liabilities — 596,272 5,379 (353 ) — 601,298 Total long-term liabilities — 6,415,834 5,379 12,458 — 6,433,671 Total member equity 466,652 466,652 2,896,901 342,915 (3,706,468 ) 466,652 Total liabilities and member equity $ 466,652 $ 7,550,764 $ 2,977,112 $ 416,043 $ (3,707,055 ) $ 7,703,516 January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 42,960 $ 596 $ 4,887 $ — $ 48,443 Credit card receivables — 33,156 — 4,281 — 37,437 Merchandise inventories — 961,538 173,570 78,375 — 1,213,483 Other current assets 118,969 11,939 2,219 (2,878 ) 130,249 Total current assets — 1,156,623 186,105 89,762 (2,878 ) 1,429,612 Property and equipment, net — 1,448,157 146,969 5,690 — 1,600,816 Intangible assets, net — 536,532 2,432,057 67,639 — 3,036,228 Goodwill — 1,412,147 537,263 118,039 — 2,067,449 Other long-term assets — 20,507 1,973 — — 22,480 Intercompany notes receivable — — 199,460 — (199,460 ) — Investments in subsidiaries 809,811 3,411,988 — — (4,221,799 ) — Total assets $ 809,811 $ 7,985,954 $ 3,503,827 $ 281,130 $ (4,424,137 ) $ 8,156,585 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 370,409 $ — $ 13,739 $ — $ 384,148 Accrued liabilities — 365,610 89,725 57,172 (2,878 ) 509,629 Current portion of long-term debt — 29,426 — — — 29,426 Total current liabilities — 765,445 89,725 70,911 (2,878 ) 923,203 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,585,911 — — — 4,585,911 Intercompany notes payable — — — 199,460 (199,460 ) — Deferred income taxes — 1,203,983 — 7,805 — 1,211,788 Other long-term liabilities — 620,804 5,068 — — 625,872 Total long-term liabilities — 6,410,698 5,068 207,265 (199,460 ) 6,423,571 Total member equity 809,811 809,811 3,409,034 2,954 (4,221,799 ) 809,811 Total liabilities and member equity $ 809,811 $ 7,985,954 $ 3,503,827 $ 281,130 $ (4,424,137 ) $ 8,156,585 January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 31,072 $ 4,716 $ — $ 35,788 Credit card receivables — 36,268 5,990 — 42,258 Merchandise inventories — 880,056 257,122 — 1,137,178 Other current assets — 127,745 15,857 (150 ) 143,452 Total current assets — 1,075,141 283,685 (150 ) 1,358,676 Property and equipment, net — 1,309,679 247,433 — 1,557,112 Intangible assets, net — 484,355 2,301,686 — 2,786,041 Goodwill — 1,338,844 548,885 — 1,887,729 Other long-term assets — 36,074 1,303 — 37,377 Investments in subsidiaries 839,014 3,204,672 — (4,043,686 ) — Total assets $ 839,014 $ 7,448,765 $ 3,382,992 $ (4,043,836 ) $ 7,626,935 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 259,837 $ 23,968 $ — $ 283,805 Accrued liabilities — 401,227 131,004 (150 ) 532,081 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 690,490 154,972 (150 ) 845,312 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,569,669 2,593 — 4,572,262 Deferred income taxes — 746,905 15,935 — 762,840 Other long-term liabilities — 602,687 4,820 — 607,507 Total long-term liabilities — 5,919,261 23,348 — 5,942,609 Total member equity 839,014 839,014 3,204,672 (4,043,686 ) 839,014 Total liabilities and member equity $ 839,014 $ 7,448,765 $ 3,382,992 $ (4,043,836 ) $ 7,626,935 July 29, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 28,301 $ 20,938 $ — $ 49,239 Credit card receivables — 35,091 3,745 — 38,836 Merchandise inventories — 915,910 237,747 — 1,153,657 Other current assets — 135,174 11,852 (587 ) 146,439 Total current assets — 1,114,476 274,282 (587 ) 1,388,171 Property and equipment, net — 1,333,487 253,474 — 1,586,961 Intangible assets, net — 509,757 2,321,659 — 2,831,416 Goodwill — 1,338,844 542,050 — 1,880,894 Other long-term assets — 14,384 1,690 — 16,074 Investments in subsidiaries 466,652 3,239,816 — (3,706,468 ) — Total assets $ 466,652 $ 7,550,764 $ 3,393,155 $ (3,707,055 ) $ 7,703,516 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 288,079 $ 28,751 $ — $ 316,830 Accrued liabilities — 350,773 106,751 (587 ) 456,937 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 668,278 135,502 (587 ) 803,193 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,675,540 — — 4,675,540 Deferred income taxes — 1,144,022 12,811 — 1,156,833 Other long-term liabilities — 596,272 5,026 — 601,298 Total long-term liabilities — 6,415,834 17,837 — 6,433,671 Total member equity 466,652 466,652 3,239,816 (3,706,468 ) 466,652 Total liabilities and member equity $ 466,652 $ 7,550,764 $ 3,393,155 $ (3,707,055 ) $ 7,703,516 January 28, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 42,960 $ 5,483 $ — $ 48,443 Credit card receivables — 33,156 4,281 — 37,437 Merchandise inventories — 961,538 251,945 — 1,213,483 Other current assets — 118,969 11,280 — 130,249 Total current assets — 1,156,623 272,989 — 1,429,612 Property and equipment, net — 1,448,157 152,659 — 1,600,816 Intangible assets, net — 536,532 2,499,696 — 3,036,228 Goodwill — 1,412,147 655,302 — 2,067,449 Other long-term assets — 20,507 1,973 — 22,480 Investments in subsidiaries 809,811 3,411,988 — (4,221,799 ) — Total assets $ 809,811 $ 7,985,954 $ 3,582,619 $ (4,221,799 ) $ 8,156,585 LIABILITIES AND MEMBER EQUITY Current liabilities: Accounts payable $ — $ 370,409 $ 13,739 $ — $ 384,148 Accrued liabilities — 365,610 144,019 — 509,629 Current portion of long-term debt — 29,426 — — 29,426 Total current liabilities — 765,445 157,758 — 923,203 Long-term liabilities: Long-term debt, net of debt issuance costs — 4,585,911 — — 4,585,911 Deferred income taxes — 1,203,983 7,805 — 1,211,788 Other long-term liabilities — 620,804 5,068 — 625,872 Total long-term liabilities — 6,410,698 12,873 — 6,423,571 Total member equity 809,811 809,811 3,411,988 (4,221,799 ) 809,811 Total liabilities and member equity $ 809,811 $ 7,985,954 $ 3,582,619 $ (4,221,799 ) $ 8,156,585 |
Schedule of condensed statements of operations | Thirteen weeks ended January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,177,621 $ 215,790 $ 88,707 $ — $ 1,482,118 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 814,745 153,024 56,287 — 1,024,056 Selling, general and administrative expenses (excluding depreciation) — 262,280 36,450 23,629 — 322,359 Income from credit card program — (12,621 ) (1,444 ) — — (14,065 ) Depreciation expense — 47,267 4,163 1,998 — 53,428 Amortization of intangible assets and favorable lease commitments — 12,416 11,468 400 — 24,284 Other expenses (income) — 12,614 — — — 12,614 Operating earnings (loss) — 40,920 12,129 6,393 — 59,442 Interest expense (income), net — 76,622 — (73 ) — 76,549 Intercompany royalty charges (income) — 49,364 (49,364 ) — — — Equity in loss (earnings) of subsidiaries (372,532 ) (66,776 ) — — 439,308 — Earnings (loss) before income taxes 372,532 (18,290 ) 61,493 6,466 (439,308 ) (17,107 ) Income tax expense (benefit) — (390,822 ) — 1,183 — (389,639 ) Net earnings (loss) $ 372,532 $ 372,532 $ 61,493 $ 5,283 $ (439,308 ) $ 372,532 Total other comprehensive earnings (loss), net of tax 14,655 10,088 — 4,567 (14,655 ) 14,655 Total comprehensive earnings (loss) $ 387,187 $ 382,620 $ 61,493 $ 9,850 $ (453,963 ) $ 387,187 Thirteen weeks ended January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,131,021 $ 201,598 $ 62,957 $ — $ 1,395,576 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 795,422 148,810 38,233 — 982,465 Selling, general and administrative expenses (excluding depreciation) — 254,906 35,746 17,066 — 307,718 Income from credit card program — (15,244 ) (1,506 ) — — (16,750 ) Depreciation expense — 52,895 4,025 293 — 57,213 Amortization of intangible assets and favorable lease commitments — 13,643 11,564 1,117 — 26,324 Other expenses (income) — 4,564 — 647 — 5,211 Impairment charges — 153,772 — — — 153,772 Operating earnings (loss) — (128,937 ) 2,959 5,601 — (120,377 ) Interest expense (income), net — 73,979 (1,446 ) 1,664 — 74,197 Intercompany royalty charges (income) — 42,440 (42,440 ) — — — Equity in loss (earnings) of subsidiaries 117,069 (49,390 ) — — (67,679 ) — Earnings (loss) before income taxes (117,069 ) (195,966 ) 46,845 3,937 67,679 (194,574 ) Income tax expense (benefit) — (78,897 ) — 1,392 — (77,505 ) Net earnings (loss) $ (117,069 ) $ (117,069 ) $ 46,845 $ 2,545 $ 67,679 $ (117,069 ) Total other comprehensive earnings (loss), net of tax 3,670 12,246 — (8,576 ) (3,670 ) 3,670 Total comprehensive earnings (loss) $ (113,399 ) $ (104,823 ) $ 46,845 $ (6,031 ) $ 64,009 $ (113,399 ) Thirteen weeks ended Twenty-six weeks ended (in thousands) January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 Revenues $ 88,707 $ 62,957 $ 162,801 $ 120,395 Net earnings (loss) 3,758 2,544 4,139 3,857 Thirteen weeks ended January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,177,621 $ 304,497 $ — $ 1,482,118 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 814,745 209,311 — 1,024,056 Selling, general and administrative expenses (excluding depreciation) — 262,280 60,079 — 322,359 Income from credit card program — (12,621 ) (1,444 ) — (14,065 ) Depreciation expense — 47,267 6,161 — 53,428 Amortization of intangible assets and favorable lease commitments — 12,416 11,868 — 24,284 Other expenses (income) — 12,614 — — 12,614 Operating earnings (loss) — 40,920 18,522 — 59,442 Interest expense (income), net — 76,622 (73 ) — 76,549 Intercompany royalty charges (income) — 49,364 (49,364 ) — — Equity in loss (earnings) of subsidiaries (372,532 ) (66,776 ) — 439,308 — Earnings (loss) before income taxes 372,532 (18,290 ) 67,959 (439,308 ) (17,107 ) Income tax expense (benefit) — (390,822 ) 1,183 — (389,639 ) Net earnings (loss) $ 372,532 $ 372,532 $ 66,776 $ (439,308 ) $ 372,532 Total other comprehensive earnings (loss), net of tax 14,655 10,088 4,567 (14,655 ) 14,655 Total comprehensive earnings (loss) $ 387,187 $ 382,620 $ 71,343 $ (453,963 ) $ 387,187 Thirteen weeks ended January 28, 2017 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 1,131,021 $ 264,555 $ — $ 1,395,576 Cost of goods sold including buying and occupancy costs (excluding depreciation) — 795,422 187,043 — 982,465 Selling, general and administrative expenses (excluding depreciation) — 254,906 52,812 — 307,718 Income from credit card program — (15,244 ) (1,506 ) — (16,750 ) Depreciation expense — 52,895 4,318 — 57,213 Amortization of intangible assets and favorable lease commitments — 13,643 12,681 — 26,324 Other expenses (income) — 4,564 647 — 5,211 Impairment charges — 153,772 — — 153,772 Operating earnings (loss) — (128,937 ) 8,560 — (120,377 ) Interest expense (income), net — 73,979 218 — 74,197 Intercompany royalty charges (income) — 42,440 (42,440 ) — — Equity in loss (earnings) of subsidiaries 117,069 (49,390 ) — (67,679 ) — Earnings (loss) before income taxes (117,069 ) (195,966 ) 50,782 67,679 (194,574 ) Income tax expense (benefit) — (78,897 ) 1,392 — (77,505 ) Net earnings (loss) $ (117,069 ) $ (117,069 ) $ 49,390 $ 67,679 $ (117,069 ) Total other comprehensive earnings (loss), net of tax 3,670 12,246 (8,576 ) (3,670 ) 3,670 Total comprehensive earnings (loss) $ (113,399 ) $ (104,823 ) $ 40,814 $ 64,009 $ (113,399 ) |
Schedule of condensed statements of cash flows | Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS - OPERATING ACTIVITIES Net earnings (loss) $ 346,315 $ 346,315 $ 123,872 $ 7,189 $ (477,376 ) $ 346,315 Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 134,165 31,187 4,775 — 170,127 Deferred income taxes — (402,691 ) — (290 ) — (402,981 ) Payment-in-kind interest — 29,289 — — — 29,289 Other — 1,595 420 (2,821 ) — (806 ) Intercompany royalty income payable (receivable) — 88,797 (88,797 ) — — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — — 477,376 — Changes in operating assets and liabilities, net — 142,090 (63,245 ) (25,245 ) — 53,600 Net cash provided by (used for) operating activities — 208,499 3,437 (16,392 ) — 195,544 CASH FLOWS - INVESTING ACTIVITIES Capital expenditures — (59,417 ) (3,232 ) (3,147 ) — (65,796 ) Net cash provided by (used for) investing activities — (59,417 ) (3,232 ) (3,147 ) — (65,796 ) CASH FLOWS - FINANCING ACTIVITIES Borrowings under revolving credit facilities — 432,000 — 18,163 — 450,163 Repayment of borrowings — (577,713 ) — (15,569 ) — (593,282 ) Repurchase of stock — (266 ) — — — (266 ) Shares withheld for remittance of employee taxes — (332 ) — — — (332 ) Net cash provided by (used for) financing activities — (146,311 ) — 2,594 — (143,717 ) Effect of exchange rate changes on cash and cash equivalents — — — 518 — 518 CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 2,771 205 (16,427 ) — (13,451 ) Beginning balance — 28,301 649 20,289 — 49,239 Ending balance $ — $ 31,072 $ 854 $ 3,862 $ — $ 35,788 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS - OPERATING ACTIVITIES Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 101,615 $ 3,854 $ 35,113 $ (140,582 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 145,420 31,696 2,846 — 179,962 Impairment charges — 153,772 — — — 153,772 Deferred income taxes — (86,627 ) — (2,747 ) — (89,374 ) Other — (1,943 ) (1,075 ) 5,356 — 2,338 Intercompany royalty income payable (receivable) — 76,444 (76,444 ) — — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — — (35,113 ) — Changes in operating assets and liabilities, net — 76,232 (42,860 ) (22,065 ) — 11,307 Net cash provided by (used for) operating activities — 117,247 12,932 (12,756 ) — 117,423 CASH FLOWS - INVESTING ACTIVITIES Capital expenditures — (99,006 ) (13,272 ) (3,420 ) — (115,698 ) Net cash provided by (used for) investing activities — (99,006 ) (13,272 ) (3,420 ) — (115,698 ) CASH FLOWS - FINANCING ACTIVITIES Borrowings under revolving credit facilities — 385,000 — — — 385,000 Repayment of borrowings — (394,713 ) — — — (394,713 ) Debt issuance costs paid — (5,359 ) — — — (5,359 ) Net cash provided (used for) by financing activities — (15,072 ) — — — (15,072 ) Effect of exchange rate changes on cash and cash equivalents — — — (53 ) — (53 ) CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 3,169 (340 ) (16,229 ) — (13,400 ) Beginning balance — 39,791 936 21,116 — 61,843 Ending balance $ — $ 42,960 $ 596 $ 4,887 $ — $ 48,443 Twenty-six weeks ended January 27, 2018 (in thousands) Company NMG Non- Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS—OPERATING ACTIVITIES Net earnings (loss) $ 346,315 $ 346,315 $ 131,061 $ (477,376 ) $ 346,315 Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 134,165 35,962 — 170,127 Deferred income taxes (402,691 ) (290 ) — (402,981 ) Payment-in-kind interest — 29,289 — — 29,289 Other — 1,595 (2,401 ) — (806 ) Intercompany royalty income payable (receivable) — 88,797 (88,797 ) — — Equity in loss (earnings) of subsidiaries (346,315 ) (131,061 ) — 477,376 — Changes in operating assets and liabilities, net — 142,090 (88,490 ) 53,600 Net cash provided by (used for) operating activities — 208,499 (12,955 ) — 195,544 CASH FLOWS—INVESTING ACTIVITIES Capital expenditures — (59,417 ) (6,379 ) — (65,796 ) Net cash provided by (used for) investing activities — (59,417 ) (6,379 ) — (65,796 ) CASH FLOWS—FINANCING ACTIVITIES Borrowings under revolving credit facilities — 432,000 18,163 — 450,163 Repayment of borrowings — (577,713 ) (15,569 ) — (593,282 ) Repurchase of stock — (266 ) — — (266 ) Shares withheld for remittance of employee taxes — (332 ) — — (332 ) Net cash provided by (used for) financing activities — (146,311 ) 2,594 — (143,717 ) Effect of exchange rate changes on cash and cash equivalents — — 518 — 518 CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 2,771 (16,222 ) — (13,451 ) Beginning balance — 28,301 20,938 — 49,239 Ending balance $ — $ 31,072 $ 4,716 $ — $ 35,788 Twenty-six weeks ended January 28, 2017 (in thousands) Company NMG Non- Eliminations Consolidated CASH FLOWS—OPERATING ACTIVITIES Net earnings (loss) $ (140,582 ) $ (140,582 ) $ 105,469 $ 35,113 $ (140,582 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense — 145,420 34,542 — 179,962 Impairment charges — 153,772 — — 153,772 Deferred income taxes — (86,627 ) (2,747 ) — (89,374 ) Other — (1,943 ) 4,281 — 2,338 Intercompany royalty income payable (receivable) — 76,444 (76,444 ) — — Equity in loss (earnings) of subsidiaries 140,582 (105,469 ) — (35,113 ) — Changes in operating assets and liabilities, net — 76,232 (64,925 ) — 11,307 Net cash provided by (used for) operating activities — 117,247 176 — 117,423 CASH FLOWS—INVESTING ACTIVITIES Capital expenditures — (99,006 ) (16,692 ) — (115,698 ) Net cash provided by (used for) investing activities — (99,006 ) (16,692 ) — (115,698 ) CASH FLOWS—FINANCING ACTIVITIES Borrowings under revolving credit facilities — 385,000 — — 385,000 Repayment of borrowings — (394,713 ) — — (394,713 ) Debt issuance costs paid — (5,359 ) — — (5,359 ) Net cash provided by (used for) financing activities — (15,072 ) — — (15,072 ) Effect of exchange rate changes on cash and cash equivalents — — (53 ) — (53 ) CASH AND CASH EQUIVALENTS Increase (decrease) during the period — 3,169 (16,569 ) — (13,400 ) Beginning balance — 39,791 22,052 — 61,843 Ending balance $ — $ 42,960 $ 5,483 $ — $ 48,443 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Estimate of fair value measurement - Recurring basis - USD ($) $ in Thousands | Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 |
Other long-term assets | Level 2 | Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps | $ 25,996 | $ 3,628 | $ 8,960 |
Accrued liabilities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earn-out obligation | 0 | 0 | 24,520 |
Other long-term liabilities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stock-based award liability | $ 5,643 | $ 1,344 | $ 3,269 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) € in Millions | 1 Months Ended | ||||
Mar. 31, 2017EUR (€) | Mar. 31, 2017USD ($) | Jan. 27, 2018USD ($) | Jul. 29, 2017USD ($) | Jan. 28, 2017USD ($) | |
Long-term Debt | |||||
Long-term debt - carrying value | $ 4,670,796,000 | $ 4,785,310,000 | $ 4,706,916,000 | ||
Cash Pay Notes | |||||
Long-term Debt | |||||
Initial amount under the debt instrument | 960,000,000 | ||||
Long-term debt - carrying value | $ 960,000,000 | 960,000,000 | 960,000,000 | ||
Interest rate (percent) | 8.00% | ||||
PIK Toggle Notes | |||||
Long-term Debt | |||||
Initial amount under the debt instrument | $ 600,000,000 | ||||
Long-term debt - carrying value | $ 628,500,000 | 600,000,000 | 600,000,000 | ||
PIK Toggle Notes | Minimum | |||||
Long-term Debt | |||||
Interest rate (percent) | 8.75% | ||||
PIK Toggle Notes | Maximum | |||||
Long-term Debt | |||||
Interest rate (percent) | 9.50% | ||||
2028 Debentures | |||||
Long-term Debt | |||||
Initial amount under the debt instrument | $ 125,000,000 | ||||
Long-term debt - carrying value | $ 122,783,000 | $ 122,677,000 | $ 122,570,000 | ||
Interest rate (percent) | 7.125% | ||||
MyTheresa | |||||
Long-term Debt | |||||
Payments to acquire business | € 25.5 | $ 26,900,000 | |||
Payments for contingent consideration | € 18.1 | $ 22,900,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Long-term Debt on a Non-recurring Basis (Details) - USD ($) $ in Thousands | Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - carrying value | $ 4,670,796 | $ 4,785,310 | $ 4,706,916 |
Asset-Based Revolving Credit Facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - carrying value | 132,000 | 263,000 | 170,000 |
mytheresa.com Credit Facilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - carrying value | 2,593 | 0 | 0 |
Senior Secured Term Loan Facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - carrying value | 2,824,920 | 2,839,633 | 2,854,346 |
Cash Pay Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - carrying value | 960,000 | 960,000 | 960,000 |
PIK Toggle Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - carrying value | 628,500 | 600,000 | 600,000 |
2028 Debentures | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - carrying value | 122,783 | 122,677 | 122,570 |
Estimate of fair value measurement | Asset-Based Revolving Credit Facility | Non-recurring basis | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - fair value | 132,000 | 263,000 | 170,000 |
Estimate of fair value measurement | mytheresa.com Credit Facilities | Non-recurring basis | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - fair value | 2,593 | 0 | 0 |
Estimate of fair value measurement | Senior Secured Term Loan Facility | Non-recurring basis | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - fair value | 2,395,899 | 2,113,766 | 2,392,313 |
Estimate of fair value measurement | Cash Pay Notes | Non-recurring basis | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - fair value | 613,565 | 532,253 | 625,680 |
Estimate of fair value measurement | PIK Toggle Notes | Non-recurring basis | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - fair value | 373,958 | 297,000 | 367,500 |
Estimate of fair value measurement | 2028 Debentures | Non-recurring basis | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt - fair value | $ 90,831 | $ 87,490 | $ 103,985 |
Intangible Assets, Net and Go37
Intangible Assets, Net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Details) - USD ($) $ in Thousands | Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | $ 2,786,041 | $ 2,831,416 | $ 3,036,228 |
Goodwill | 1,887,729 | 1,880,894 | 2,067,449 |
Tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | 1,503,373 | 1,499,750 | 1,654,294 |
Favorable lease commitments, net | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | 905,016 | 930,585 | 956,959 |
Other definite-lived intangible assets, net | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | $ 377,652 | $ 401,081 | $ 424,975 |
Intangible Assets, Net and Go38
Intangible Assets, Net and Goodwill - Narrative (Details) $ in Millions | 6 Months Ended |
Jan. 27, 2018USD ($) | |
Favorable lease commitments, net | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life (years) | 30 years |
Finite-lived intangible assets, accumulated amortization | $ 226 |
Favorable lease commitments, net | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (years) | 5 years |
Favorable lease commitments, net | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (years) | 55 years |
Other definite-lived intangible assets, net | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life (years) | 13 years |
Finite-lived intangible assets, accumulated amortization | $ 323.8 |
Other definite-lived intangible assets, net | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (years) | 6 years |
Other definite-lived intangible assets, net | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (years) | 16 years |
Intangible Assets, Net and Go39
Intangible Assets, Net and Goodwill - Amortization of Intangible Assets for Current and Next Five Years (Details) $ in Thousands | Jan. 27, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
January 28, 2018 through July 28, 2018 | $ 48,511 |
2,019 | 95,003 |
2,020 | 88,306 |
2,021 | 82,301 |
2,022 | 82,450 |
2,023 | $ 81,305 |
Impairment Charges - Narrative
Impairment Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | Jul. 29, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Impairment charges | $ 0 | $ 357,000 | $ 153,772 | $ 0 | $ 153,772 | $ 510,700 |
Long-term Debt - Schedule of si
Long-term Debt - Schedule of significant components (Details) - USD ($) $ in Thousands | Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 |
Long-term Debt | |||
Total debt | $ 4,670,796 | $ 4,785,310 | $ 4,706,916 |
Less: current portion of Senior Secured Term Loan Facility | (29,426) | (29,426) | (29,426) |
Less: unamortized debt issuance costs | (69,108) | (80,344) | (91,579) |
Long-term debt, net of debt issuance costs | 4,572,262 | 4,675,540 | 4,585,911 |
Asset-Based Revolving Credit Facility | |||
Long-term Debt | |||
Total debt | 132,000 | 263,000 | 170,000 |
mytheresa.com Credit Facilities | |||
Long-term Debt | |||
Total debt | $ 2,593 | 0 | 0 |
mytheresa.com Credit Facilities | Minimum | |||
Long-term Debt | |||
Interest rate (percent) | 2.25% | ||
mytheresa.com Credit Facilities | Maximum | |||
Long-term Debt | |||
Interest rate (percent) | 2.39% | ||
Senior Secured Term Loan Facility | |||
Long-term Debt | |||
Total debt | $ 2,824,920 | 2,839,633 | 2,854,346 |
Cash Pay Notes | |||
Long-term Debt | |||
Interest rate (percent) | 8.00% | ||
Total debt | $ 960,000 | 960,000 | 960,000 |
PIK Toggle Notes | |||
Long-term Debt | |||
Total debt | $ 628,500 | 600,000 | 600,000 |
PIK Toggle Notes | Minimum | |||
Long-term Debt | |||
Interest rate (percent) | 8.75% | ||
PIK Toggle Notes | Maximum | |||
Long-term Debt | |||
Interest rate (percent) | 9.50% | ||
2028 Debentures | |||
Long-term Debt | |||
Interest rate (percent) | 7.125% | ||
Total debt | $ 122,783 | $ 122,677 | $ 122,570 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | Jan. 27, 2018USD ($) | Oct. 28, 2017 | Apr. 30, 2018USD ($) | Oct. 31, 2017USD ($) | Jan. 27, 2018USD ($)credit_facility | Jan. 28, 2017USD ($) | Jan. 27, 2018EUR (€)payment | Jan. 27, 2018USD ($)payment | Jul. 29, 2017USD ($) | Jun. 08, 2017EUR (€) | Oct. 01, 2015EUR (€) |
Long-term Debt | |||||||||||
Total debt | $ 4,706,916,000 | $ 4,670,796,000 | $ 4,785,310,000 | ||||||||
Assets | 8,156,585,000 | 7,626,935,000 | 7,703,516,000 | ||||||||
Paid-in-kind interest to be converted into debt | $ 28,500,000 | 0 | |||||||||
Revolving Credit Facility | |||||||||||
Long-term Debt | |||||||||||
Maximum committed borrowing capacity | 900,000,000 | ||||||||||
Total debt | 170,000,000 | 132,000,000 | 263,000,000 | ||||||||
Outstanding letters of credit | 1,800,000 | ||||||||||
Unused borrowing availability | 749,700,000 | ||||||||||
Unused borrowing available, subject to certain restrictions | 90,000,000 | ||||||||||
Maximum borrowing capacity for available letters of credit | $ 150,000,000 | ||||||||||
Percentage of net orderly liquidation value of eligible inventory, net of certain reserves for determining borrowing base | 90.00% | 90.00% | |||||||||
Percentage of amounts owed by credit card processors for determining borrowing base | 90.00% | 90.00% | |||||||||
Percentage of segregated cash held in a restricted deposit account for determining borrowing base | 100.00% | 100.00% | |||||||||
Borrowing base restriction period | 5 days | ||||||||||
Incremental borrowing capacity available under loan accordion feature (not to exceed) | $ 200,000,000 | ||||||||||
Maximum borrowing capacity with uncommitted accordion feature (up to) | $ 1,100,000,000 | ||||||||||
Interest rate margin step down based on senior secured first lien net leverage | 0.25% | ||||||||||
Weighted average interest rate | 3.78% | 3.78% | |||||||||
Amount as a condition for repaying outstanding loans. period | 5 days | ||||||||||
Actions restricted by covenants, payment conditions period | 30 days | ||||||||||
Revolving Credit Facility | Base rate | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 0.75% | ||||||||||
Revolving Credit Facility | Federal funds effective rate | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 0.50% | ||||||||||
Revolving Credit Facility | One-month LIBOR | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 1.00% | ||||||||||
Revolving Credit Facility | LIBOR | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 1.75% | ||||||||||
Revolving Credit Facility | Minimum | |||||||||||
Long-term Debt | |||||||||||
Percentage of lesser of aggregate revolving commitments and borrowing base for maintaining excess availability provisions | 10.00% | 10.00% | |||||||||
Amount required for maintaining excess availability provisions (not to exceed) | $ 50,000,000 | ||||||||||
Percentage of lesser of aggregate revolving commitments and borrowing base as a condition for repaying outstanding loans | 10.00% | 10.00% | |||||||||
Amount as a condition for repaying outstanding loans | $ 50,000,000 | ||||||||||
Amount of pro forma excess availability under the asset-based revolving credit facility required based on facility covenants | $ 90,000,000 | ||||||||||
Percentage of lesser of aggregate revolving commitments and borrowing base for pro forma excess availability of credit facility | 15.00% | 15.00% | |||||||||
Debt instrument, covenant consolidated fixed charge coverage ratio (at least) | 1 | ||||||||||
Aggregate principal amount having customary affirmative covenants and default provisions | $ 50,000,000 | ||||||||||
Revolving Credit Facility | Maximum | |||||||||||
Long-term Debt | |||||||||||
Commitment fee for unused commitments (as percentage) | 0.375% | ||||||||||
Amount of pro forma excess availability under the asset-based revolving credit facility required based on facility covenants | $ 200,000,000 | ||||||||||
Percentage of lesser of aggregate revolving commitments and borrowing base for pro forma excess availability of credit facility | 25.00% | 25.00% | |||||||||
Revolving Credit Facility | Maximum | Base rate | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 1.00% | ||||||||||
Revolving Credit Facility | Maximum | LIBOR | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 2.00% | ||||||||||
Senior Secured Term Loan Facility | |||||||||||
Long-term Debt | |||||||||||
Total debt | 2,854,346,000 | $ 2,824,920,000 | 2,839,633,000 | ||||||||
Initial amount under the debt instrument | 2,950,000,000 | ||||||||||
Incremental borrowings available under debt | $ 650,000,000 | ||||||||||
Interest rate on the outstanding borrowings (as a percent) | 4.81% | 4.81% | |||||||||
Percentage of proceeds from certain asset sales and debt issuances that must be used to repay debt | 100.00% | 100.00% | |||||||||
Percentage of proceeds from excess cash flow that must be used to repay debt | 50.00% | 50.00% | |||||||||
Mandatory prepayment as a percentage of proceeds from certain asset sales | 100.00% | 100.00% | |||||||||
Quarterly payment | $ 7,400,000 | ||||||||||
Senior Secured Term Loan Facility | Leverage ratio, option one | |||||||||||
Long-term Debt | |||||||||||
Mandatory prepayment as a percentage of excess cash flows | 25.00% | 25.00% | |||||||||
Senior Secured Term Loan Facility | Leverage ratio, option two | |||||||||||
Long-term Debt | |||||||||||
Mandatory prepayment as a percentage of excess cash flows | 0.00% | 0.00% | |||||||||
Senior Secured Term Loan Facility | Non- Guarantor Subsidiaries | |||||||||||
Long-term Debt | |||||||||||
Assets | $ 441,700,000 | ||||||||||
Assets of non-guarantor subsidiaries, percentage | 5.80% | 5.80% | |||||||||
Senior Secured Term Loan Facility | Federal funds effective rate | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 0.50% | ||||||||||
Senior Secured Term Loan Facility | One-month LIBOR | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 1.00% | ||||||||||
Senior Secured Term Loan Facility | Minimum | |||||||||||
Long-term Debt | |||||||||||
Aggregate principal amount having customary affirmative covenants and default provisions | $ 50,000,000 | ||||||||||
Senior Secured Term Loan Facility | Minimum | Leverage ratio, option one | |||||||||||
Long-term Debt | |||||||||||
Secured leverage ratio | 3.5 | ||||||||||
Senior Secured Term Loan Facility | Minimum | LIBOR | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 1.00% | ||||||||||
Senior Secured Term Loan Facility | Maximum | |||||||||||
Long-term Debt | |||||||||||
Secured leverage ratio | 4.25 | ||||||||||
Senior Secured Term Loan Facility | Maximum | Leverage ratio, option one | |||||||||||
Long-term Debt | |||||||||||
Secured leverage ratio | 4 | ||||||||||
Senior Secured Term Loan Facility | Maximum | Leverage ratio, option two | |||||||||||
Long-term Debt | |||||||||||
Secured leverage ratio | 3.5 | ||||||||||
Senior Secured Term Loan Facility | Maximum | Base rate | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 2.25% | ||||||||||
Senior Secured Term Loan Facility | Maximum | LIBOR | |||||||||||
Long-term Debt | |||||||||||
Interest rate margin (as a percent) | 3.25% | ||||||||||
Cash Pay Notes | |||||||||||
Long-term Debt | |||||||||||
Total debt | 960,000,000 | $ 960,000,000 | 960,000,000 | ||||||||
Interest rate (percent) | 8.00% | 8.00% | |||||||||
Initial amount under the debt instrument | $ 960,000,000 | ||||||||||
Redemption percentage | 104.00% | ||||||||||
PIK Toggle Notes | |||||||||||
Long-term Debt | |||||||||||
Total debt | 600,000,000 | 628,500,000 | 600,000,000 | ||||||||
Initial amount under the debt instrument | $ 600,000,000 | ||||||||||
Redemption percentage | 104.375% | ||||||||||
Percentage of interest to be paid after first two interest payments in cash interest, option 3 | 50.00% | ||||||||||
Percentage of interest to be paid after first two interest payments in PIK interest, option 3 | 50.00% | ||||||||||
Number of first interest payments for which interest on debt will be paid entirely in cash | payment | 7 | 7 | |||||||||
Minimum days notice for interest payment election | 1 day | ||||||||||
PIK Toggle Notes | Minimum | |||||||||||
Long-term Debt | |||||||||||
Interest rate (percent) | 8.75% | 8.75% | |||||||||
PIK Toggle Notes | Maximum | |||||||||||
Long-term Debt | |||||||||||
Interest rate (percent) | 9.50% | 9.50% | |||||||||
2028 Debentures | |||||||||||
Long-term Debt | |||||||||||
Total debt | 122,570,000 | $ 122,783,000 | 122,677,000 | ||||||||
Interest rate (percent) | 7.125% | 7.125% | |||||||||
Initial amount under the debt instrument | $ 125,000,000 | ||||||||||
2028 Debentures | Minimum | |||||||||||
Long-term Debt | |||||||||||
Aggregate principal amount having customary affirmative covenants and default provisions | 15,000,000 | ||||||||||
mytheresa.com Credit Facilities | |||||||||||
Long-term Debt | |||||||||||
Total debt | $ 0 | $ 2,593,000 | $ 0 | ||||||||
mytheresa.com Credit Facilities | Minimum | |||||||||||
Long-term Debt | |||||||||||
Interest rate (percent) | 2.25% | 2.25% | |||||||||
mytheresa.com Credit Facilities | Maximum | |||||||||||
Long-term Debt | |||||||||||
Interest rate (percent) | 2.39% | 2.39% | |||||||||
October 2017 PIK Toggle Notes | PIK Toggle Notes | |||||||||||
Long-term Debt | |||||||||||
Paid-in-kind interest to be converted into debt | $ 28,500,000 | ||||||||||
MyTheresa | Revolving Credit Facility | Subsidiaries | |||||||||||
Long-term Debt | |||||||||||
Unused borrowing availability | € 11,700,000 | $ 14,100,000 | |||||||||
Number of credit facilities | credit_facility | 2 | ||||||||||
Outstanding guarantees | 1,100,000 | 1,300,000 | |||||||||
MyTheresa | First Credit Agreement | Revolving Credit Facility | Subsidiaries | |||||||||||
Long-term Debt | |||||||||||
Maximum committed borrowing capacity | € | € 6,500,000 | ||||||||||
Interest rate (percent) | 2.39% | ||||||||||
MyTheresa | Second Credit Agreement | Revolving Credit Facility | Subsidiaries | |||||||||||
Long-term Debt | |||||||||||
Maximum committed borrowing capacity | € | € 8,500,000 | ||||||||||
Total debt | € 2,200,000 | $ 2,600,000 | |||||||||
Interest rate (percent) | 2.25% | ||||||||||
Scenario, Forecast | October 2017 PIK Toggle Notes | PIK Toggle Notes | |||||||||||
Long-term Debt | |||||||||||
Paid-in-kind interest to be converted into debt | $ 29,900,000 |
Long-term Debt - Maturities of
Long-term Debt - Maturities of Long-term Debt (Details) $ in Millions | Jan. 27, 2018USD ($) |
Debt Disclosure [Abstract] | |
January 28, 2018 through July 28, 2018 | $ 14.7 |
2,019 | 29.4 |
2,020 | 29.4 |
2,021 | 2,883.4 |
2,022 | 1,588.5 |
2,023 | 0 |
Thereafter | $ 125.4 |
Long-term Debt - Interest Expen
Long-term Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 27, 2018 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | |
Interest expense | ||||
Amortization of debt issue costs | $ 6,121 | $ 6,121 | $ 12,238 | $ 12,264 |
Capitalized interest | (1,841) | (1,529) | (3,564) | (3,244) |
Other, net | 598 | 845 | 761 | 1,285 |
Interest expense, net | 76,549 | 74,197 | 152,647 | 146,280 |
Asset-Based Revolving Credit Facility | ||||
Interest expense | ||||
Interest expense | 1,483 | 1,366 | 3,796 | 2,570 |
mytheresa.com Credit Facilities | ||||
Interest expense | ||||
Interest expense | 21 | 28 | 42 | 43 |
Senior Secured Term Loan Facility | ||||
Interest expense | ||||
Interest expense | 33,814 | 32,815 | 67,232 | 64,259 |
Cash Pay Notes | ||||
Interest expense | ||||
Interest expense | 19,200 | 19,200 | 38,400 | 38,400 |
PIK Toggle Notes | ||||
Interest expense | ||||
Interest expense | 14,927 | 13,125 | 29,289 | 26,250 |
2028 Debentures | ||||
Interest expense | ||||
Interest expense | $ 2,226 | $ 2,226 | $ 4,453 | $ 4,453 |
Derivative Financial Instrume45
Derivative Financial Instruments - Narrative (Details) - USD ($) | 6 Months Ended | ||||||
Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 | Dec. 01, 2016 | Jun. 30, 2016 | Apr. 30, 2016 | Apr. 30, 2014 | |
Derivative Financial Instruments | |||||||
Outstanding floating rate debt obligations | $ 2,956,900,000 | ||||||
Losses recorded that are expected to be reclassified into interest expense in the next 12 months | 4,500,000 | ||||||
Interest Rate Swap | |||||||
Derivative Financial Instruments | |||||||
Notional amount | $ 1,400,000,000 | ||||||
Interest Rate Swap One | |||||||
Derivative Financial Instruments | |||||||
Notional amount | $ 700,000,000 | ||||||
Fixed interest rate | 4.912% | ||||||
Interest Rate Swap Two | |||||||
Derivative Financial Instruments | |||||||
Notional amount | $ 700,000,000 | ||||||
Fixed interest rate | 4.7395% | ||||||
Interest Rate Caps | |||||||
Derivative Financial Instruments | |||||||
Notional amount | $ 1,400,000,000 | ||||||
Fair value of derivate asset | $ 2,000,000 | ||||||
Interest Rate Caps | LIBOR | |||||||
Derivative Financial Instruments | |||||||
Cap interest rate (as a percent) | 3.00% | ||||||
Other long-term assets | Interest Rate Swap | |||||||
Derivative Financial Instruments | |||||||
Derivative in asset position | $ 26,000,000 | $ 3,600,000 | |||||
Other long-term liabilities | Interest Rate Swap | |||||||
Derivative Financial Instruments | |||||||
Derivative in liability position | $ 9,000,000 |
Derivative Financial Instrume46
Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Details) - Interest Expense - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 27, 2018 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | |
Derivative Financial Instruments | ||||
Interest rate cash flow hedge gains (losses) reclassified to earnings, net | $ 1,033 | $ 1,527 | $ 2,272 | $ 2,118 |
Interest Rate Swap | ||||
Derivative Financial Instruments | ||||
Interest rate cash flow hedge gains (losses) reclassified to earnings, net | 1,033 | 694 | 2,272 | 694 |
Interest Rate Caps | ||||
Derivative Financial Instruments | ||||
Interest rate cash flow hedge gains (losses) reclassified to earnings, net | $ 0 | $ 833 | $ 0 | $ 1,424 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 27, 2018 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | Jul. 28, 2018 | Jul. 29, 2017 | |
Effective Income Tax Rates | ||||||
Effective income tax rate excluding impact of Tax Reform | 32.30% | 39.80% | 39.20% | 41.80% | ||
Impact of Tax Reform | 2245.40% | 0.00% | 617.30% | 0.00% | ||
Effective income tax rate | 2277.70% | 39.80% | 656.50% | 41.80% | ||
Income tax benefit due to deferred tax remeasure as result of Tax Cuts and Jobs Act | $ 384.1 | |||||
Unrecognized tax benefits | 1.3 | $ 1.3 | ||||
Unrecognized tax benefits that would impact effective tax rate | 1 | 1 | ||||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 0.3 | $ 0.1 | $ 0.3 | $ 0.1 | $ 0.4 | |
Scenario, Forecast | ||||||
Effective Income Tax Rates | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 26.90% |
Employee Benefit - Obligations
Employee Benefit - Obligations for Employee Benefit (Details) - USD ($) $ in Thousands | Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 |
Obligations for employee benefit plans, included in other long-term liabilities | |||
Benefit obligations, current and noncurrent | $ 348,087 | $ 360,392 | $ 428,570 |
Less: current portion | (6,679) | (7,803) | (6,553) |
Long-term portion of benefit obligations | 341,408 | 352,589 | 422,017 |
Pension Plan | |||
Obligations for employee benefit plans, included in other long-term liabilities | |||
Benefit obligations, current and noncurrent | 230,606 | 240,737 | 300,543 |
SERP Plan | |||
Obligations for employee benefit plans, included in other long-term liabilities | |||
Benefit obligations, current and noncurrent | 111,093 | 112,739 | 119,807 |
Postretirement Plan | |||
Obligations for employee benefit plans, included in other long-term liabilities | |||
Benefit obligations, current and noncurrent | $ 6,388 | $ 6,916 | $ 8,220 |
Employee Benefit - Narrative (D
Employee Benefit - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jan. 27, 2018 | Jan. 27, 2018 | Jul. 28, 2018 | Jul. 29, 2017 | |
Employee Benefit Plans | ||||
Non-cash gain on reduction of vacation liability | $ 7.8 | $ 9 | ||
Pension Plan | ||||
Employee Benefit Plans | ||||
Estimated fiscal 2018 contribution | $ 25.1 | 25.1 | ||
Contributions by employer | $ 9.3 | $ 10.7 | ||
Scenario, Forecast | Minimum | ||||
Employee Benefit Plans | ||||
Estimated reduction to vacation liability as result of policy change | $ 18 | |||
Scenario, Forecast | Maximum | ||||
Employee Benefit Plans | ||||
Estimated reduction to vacation liability as result of policy change | $ 20 |
Employee Benefit - Components o
Employee Benefit - Components of Expenses Incurred (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 27, 2018 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | |
Pension Plan | ||||
Employee Benefit Plans | ||||
Interest cost | $ 4,973 | $ 4,870 | $ 9,946 | $ 9,740 |
Expected return on plan assets | (5,396) | (5,331) | (10,792) | (10,662) |
Net amortization of (gains) losses | 170 | 663 | 340 | 1,326 |
Expense (income) under plan | (253) | 202 | (506) | 404 |
SERP Plan | ||||
Employee Benefit Plans | ||||
Interest cost | 844 | 784 | 1,688 | 1,568 |
Net amortization of (gains) losses | 0 | 23 | 0 | 46 |
Expense (income) under plan | 844 | 807 | 1,688 | 1,614 |
Postretirement Plan | ||||
Employee Benefit Plans | ||||
Interest cost | 51 | 55 | 102 | 110 |
Net amortization of (gains) losses | (180) | (146) | (360) | (292) |
Expense (income) under plan | $ (129) | $ (91) | $ (258) | $ (182) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Feb. 11, 2016plaintiff | Jun. 02, 2014plaintiff | Sep. 30, 2017objection | Jan. 31, 2014claim | Apr. 30, 2014claim | Jan. 27, 2018USD ($) |
Loss Contingencies [Line Items] | ||||||
Number of new claims filed | plaintiff | 7 | |||||
Asset-Based Revolving Credit Facility | ||||||
Other | ||||||
Outstanding letters of credit | $ | $ 1.8 | |||||
The Cyber-Attack | ||||||
Loss Contingencies [Line Items] | ||||||
Number of new claims filed | claim | 3 | 3 | ||||
Number of claims dismissed | claim | 2 | |||||
Number of plaintiffs | plaintiff | 3 | |||||
Number of objections | objection | 2 | |||||
Surety Bond | ||||||
Other | ||||||
Surety bonds | $ | $ 3.4 |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 27, 2018 | Oct. 28, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 466,652 | |
Other comprehensive earnings | $ 14,010 | 9,643 |
Amounts reclassified from accumulated other comprehensive loss | 645 | 754 |
Ending balance | 839,014 | |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (5,446) | (11,600) |
Other comprehensive earnings | 4,567 | 6,154 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | (879) | (5,446) |
Unrealized Gains on Financial Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 7,277 | 3,394 |
Other comprehensive earnings | 9,449 | 3,129 |
Amounts reclassified from accumulated other comprehensive loss | 645 | 754 |
Ending balance | 17,371 | 7,277 |
Unfunded Benefit Obligations | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (54,865) | (55,225) |
Other comprehensive earnings | (6) | 360 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | (54,871) | (54,865) |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (53,034) | (63,431) |
Ending balance | $ (38,379) | $ (53,034) |
Stock-Based Awards - Narrative
Stock-Based Awards - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Jan. 27, 2018USD ($)$ / sharesshares | Oct. 28, 2017USD ($) | Jan. 28, 2017USD ($)shares | Jan. 27, 2018USD ($)$ / sharesshares | Jul. 29, 2017USD ($)shares | |
Parent | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options held by retirement eligible optionees (in shares) | 67,395 | 67,395 | ||||
Recorded liability | $ | $ 5.4 | $ 2.5 | $ 5.4 | $ 0.2 | ||
Co-Invest Options | Parent | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exchange ratio | 3.1 | |||||
Exercise price, low end of range (in dollars per share) | $ / shares | $ 180 | |||||
Exercise price, high end of range (in dollars per share) | $ / shares | $ 644 | |||||
Expiration term of options granted (years) | 10 years | |||||
Non-cash stock compensation expense | $ | $ 4.2 | |||||
Non Qualified Stock Option | Parent | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration term of options granted (years) | 10 years | |||||
Non-cash stock compensation expense | $ | $ 0.5 | |||||
Number of shares repriced (in shares) | 43,261 | 43,261 | ||||
Exercise price (in dollars per share) | $ / shares | $ 500 | $ 500 | ||||
Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recorded liability | $ | $ 0.3 | $ 0.3 | $ 1.2 | |||
Awards granted (in shares) | 26,954 | |||||
Put option, period following earnings release | 14 days | |||||
Restricted stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||
Award acceleration vesting threshold | 12 months | |||||
Unvested shares (in shares) | 12,239 | 12,239 | 21,355 | |||
Restricted stock | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Restricted stock | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Class A common stock | Co-Invest Options | Parent | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options exercisable (in shares) | 56,979 |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of Stock Options (Details) | 6 Months Ended |
Jan. 27, 2018$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 196,416 |
Granted (in shares) | shares | 44,206 |
Exercised (in shares) | shares | (974) |
Canceled (in shares) | shares | (40,406) |
Forfeited (in shares) | shares | (14,183) |
Expired (in shares) | shares | (2,274) |
Ending balance (in shares) | shares | 182,785 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 854 |
Granted (in dollars per share) | $ / shares | 489 |
Exercised (dollars per share) | $ / shares | 180 |
Canceled (in dollars per share) | $ / shares | 467 |
Forfeited (in dollars per share) | $ / shares | 1,004 |
Expired (in dollars per share) | $ / shares | 346 |
Ending balance (in dollars per share) | $ / shares | $ 727 |
Stock-Based Awards - Summary 55
Stock-Based Awards - Summary of Restricted Stock (Details) - Restricted stock | 6 Months Ended |
Jan. 27, 2018$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 21,355 |
Vested (in shares) | shares | (5,210) |
Forfeited (in shares) | shares | (3,906) |
Ending balance (in shares) | shares | 12,239 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 768 |
Vested (in dollars per share) | $ / shares | 768 |
Forfeited (in dollars per share) | $ / shares | 768 |
Ending balance (in dollars per share) | $ / shares | $ 768 |
Stock-Based Awards - Stock base
Stock-Based Awards - Stock based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 27, 2018 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense (benefit) | $ 1,333 | $ (864) | $ 5,892 | $ 517 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense (benefit) | 1,153 | (1,704) | 5,406 | (323) |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense (benefit) | $ 180 | $ 840 | $ 486 | $ 840 |
Income from Credit Card Progr57
Income from Credit Card Program - Narrative (Details) | 6 Months Ended |
Jan. 27, 2018 | |
Income from Credit Card Program | |
Renewable agreement term with Capital One | 3 years |
Other Expenses - Components of
Other Expenses - Components of Other Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 27, 2018 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | |
Other Expenses [Abstract] | ||||
Expenses related to store closures | $ 6,602 | $ 1,495 | $ 7,920 | $ 1,495 |
Expenses incurred in connection with strategic initiatives | 1,388 | 1,932 | 1,810 | 8,485 |
Expenses related to Cyber-Attack, net of insurance recoveries | 0 | 0 | 1,100 | 0 |
MyTheresa acquisition costs | 0 | 1,317 | 0 | 702 |
Other expenses | 4,624 | 467 | 4,624 | 1,347 |
Total | $ 12,614 | $ 5,211 | $ 15,454 | $ 12,029 |
Other Expenses - Narrative (Det
Other Expenses - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 27, 2018USD ($)store | Jan. 28, 2017USD ($) | Jan. 27, 2018USD ($)position | Jan. 28, 2017USD ($) | Jul. 29, 2017store | |
Other Expenses [Abstract] | |||||
Number of stores closures | store | 11 | 4 | |||
Expenses related to store closures | $ 6,602 | $ 1,495 | $ 7,920 | $ 1,495 | |
Expenses incurred in connection with strategic initiatives | 1,388 | 1,932 | $ 1,810 | 8,485 | |
Number of positions eliminated (in positions) | position | 90 | ||||
Expenses related to Cyber-Attack, net of insurance recoveries | 0 | $ 0 | $ 1,100 | $ 0 | |
Severance costs | $ 4,600 |
Condensed Consolidating Finan60
Condensed Consolidating Financial Information (with respect to NMG's obligations under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes) - Balance Sheets (Details) - USD ($) $ in Thousands | Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 35,788 | $ 49,239 | $ 48,443 | $ 61,843 |
Credit card receivables | 42,258 | 38,836 | 37,437 | |
Merchandise inventories | 1,137,178 | 1,153,657 | 1,213,483 | |
Other current assets | 143,452 | 146,439 | 130,249 | |
Total current assets | 1,358,676 | 1,388,171 | 1,429,612 | |
Property and equipment, net | 1,557,112 | 1,586,961 | 1,600,816 | |
Intangible assets, net | 2,786,041 | 2,831,416 | 3,036,228 | |
Goodwill | 1,887,729 | 1,880,894 | 2,067,449 | |
Other long-term assets | 37,377 | 16,074 | 22,480 | |
Total assets | 7,626,935 | 7,703,516 | 8,156,585 | |
Current liabilities: | ||||
Accounts payable | 283,805 | 316,830 | 384,148 | |
Accrued liabilities | 532,081 | 456,937 | 509,629 | |
Current portion of long-term debt | 29,426 | 29,426 | 29,426 | |
Total current liabilities | 845,312 | 803,193 | 923,203 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 4,572,262 | 4,675,540 | 4,585,911 | |
Deferred income taxes | 762,840 | 1,156,833 | 1,211,788 | |
Total long-term liabilities | 5,942,609 | 6,433,671 | 6,423,571 | |
Total member equity | 839,014 | 466,652 | 809,811 | |
Total liabilities and member equity | 7,626,935 | 7,703,516 | 8,156,585 | |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 35,788 | 49,239 | 48,443 | 61,843 |
Credit card receivables | 42,258 | 38,836 | 37,437 | |
Merchandise inventories | 1,137,178 | 1,153,657 | 1,213,483 | |
Other current assets | 143,452 | 146,439 | 130,249 | |
Total current assets | 1,358,676 | 1,388,171 | 1,429,612 | |
Property and equipment, net | 1,557,112 | 1,586,961 | 1,600,816 | |
Intangible assets, net | 2,786,041 | 2,831,416 | 3,036,228 | |
Goodwill | 1,887,729 | 1,880,894 | 2,067,449 | |
Other long-term assets | 37,377 | 16,074 | 22,480 | |
Intercompany notes receivable | 0 | |||
Investments in subsidiaries | 0 | 0 | 0 | |
Total assets | 7,626,935 | 7,703,516 | 8,156,585 | |
Current liabilities: | ||||
Accounts payable | 283,805 | 316,830 | 384,148 | |
Accrued liabilities | 532,081 | 456,937 | 509,629 | |
Current portion of long-term debt | 29,426 | 29,426 | 29,426 | |
Total current liabilities | 845,312 | 803,193 | 923,203 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 4,572,262 | 4,675,540 | 4,585,911 | |
Intercompany notes payable | 0 | |||
Deferred income taxes | 762,840 | 1,156,833 | 1,211,788 | |
Other long-term liabilities | 607,507 | 601,298 | 625,872 | |
Total long-term liabilities | 5,942,609 | 6,433,671 | 6,423,571 | |
Total member equity | 839,014 | 466,652 | 809,811 | |
Total liabilities and member equity | 7,626,935 | 7,703,516 | 8,156,585 | |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | Company | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Credit card receivables | 0 | 0 | 0 | |
Merchandise inventories | 0 | 0 | 0 | |
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | 0 | |
Property and equipment, net | 0 | 0 | 0 | |
Intangible assets, net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Other long-term assets | 0 | 0 | 0 | |
Intercompany notes receivable | 0 | |||
Investments in subsidiaries | 839,014 | 466,652 | 809,811 | |
Total assets | 839,014 | 466,652 | 809,811 | |
Current liabilities: | ||||
Accounts payable | 0 | 0 | 0 | |
Accrued liabilities | 0 | 0 | 0 | |
Current portion of long-term debt | 0 | 0 | 0 | |
Total current liabilities | 0 | 0 | 0 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 0 | 0 | 0 | |
Intercompany notes payable | 0 | |||
Deferred income taxes | 0 | 0 | 0 | |
Other long-term liabilities | 0 | 0 | 0 | |
Total long-term liabilities | 0 | 0 | 0 | |
Total member equity | 839,014 | 466,652 | 809,811 | |
Total liabilities and member equity | 839,014 | 466,652 | 809,811 | |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | NMG | ||||
Current assets: | ||||
Cash and cash equivalents | 31,072 | 28,301 | 42,960 | 39,791 |
Credit card receivables | 36,268 | 35,091 | 33,156 | |
Merchandise inventories | 880,056 | 915,910 | 961,538 | |
Other current assets | 127,745 | 135,174 | 118,969 | |
Total current assets | 1,075,141 | 1,114,476 | 1,156,623 | |
Property and equipment, net | 1,309,679 | 1,333,487 | 1,448,157 | |
Intangible assets, net | 484,355 | 509,757 | 536,532 | |
Goodwill | 1,338,844 | 1,338,844 | 1,412,147 | |
Other long-term assets | 36,074 | 14,384 | 20,507 | |
Intercompany notes receivable | 0 | |||
Investments in subsidiaries | 3,204,672 | 3,239,816 | 3,411,988 | |
Total assets | 7,448,765 | 7,550,764 | 7,985,954 | |
Current liabilities: | ||||
Accounts payable | 259,837 | 288,079 | 370,409 | |
Accrued liabilities | 401,227 | 350,773 | 365,610 | |
Current portion of long-term debt | 29,426 | 29,426 | 29,426 | |
Total current liabilities | 690,490 | 668,278 | 765,445 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 4,569,669 | 4,675,540 | 4,585,911 | |
Intercompany notes payable | 0 | |||
Deferred income taxes | 746,905 | 1,144,022 | 1,203,983 | |
Other long-term liabilities | 602,687 | 596,272 | 620,804 | |
Total long-term liabilities | 5,919,261 | 6,415,834 | 6,410,698 | |
Total member equity | 839,014 | 466,652 | 809,811 | |
Total liabilities and member equity | 7,448,765 | 7,550,764 | 7,985,954 | |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 854 | 649 | 596 | 936 |
Credit card receivables | 0 | 0 | 0 | |
Merchandise inventories | 143,328 | 151,193 | 173,570 | |
Other current assets | 10,943 | 9,956 | 11,939 | |
Total current assets | 155,125 | 161,798 | 186,105 | |
Property and equipment, net | 144,226 | 149,932 | 146,969 | |
Intangible assets, net | 2,226,259 | 2,249,290 | 2,432,057 | |
Goodwill | 414,402 | 414,402 | 537,263 | |
Other long-term assets | 1,303 | 1,690 | 1,973 | |
Intercompany notes receivable | 199,460 | |||
Investments in subsidiaries | 0 | 0 | 0 | |
Total assets | 2,941,315 | 2,977,112 | 3,503,827 | |
Current liabilities: | ||||
Accounts payable | 0 | 0 | 0 | |
Accrued liabilities | 90,613 | 74,832 | 89,725 | |
Current portion of long-term debt | 0 | 0 | 0 | |
Total current liabilities | 90,613 | 74,832 | 89,725 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 0 | 0 | 0 | |
Intercompany notes payable | 0 | |||
Deferred income taxes | 0 | 0 | 0 | |
Other long-term liabilities | 5,413 | 5,379 | 5,068 | |
Total long-term liabilities | 5,413 | 5,379 | 5,068 | |
Total member equity | 2,845,289 | 2,896,901 | 3,409,034 | |
Total liabilities and member equity | 2,941,315 | 2,977,112 | 3,503,827 | |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 3,862 | 20,289 | 4,887 | 21,116 |
Credit card receivables | 5,990 | 3,745 | 4,281 | |
Merchandise inventories | 113,794 | 86,554 | 78,375 | |
Other current assets | 4,914 | 1,896 | 2,219 | |
Total current assets | 128,560 | 112,484 | 89,762 | |
Property and equipment, net | 103,207 | 103,542 | 5,690 | |
Intangible assets, net | 75,427 | 72,369 | 67,639 | |
Goodwill | 134,483 | 127,648 | 118,039 | |
Other long-term assets | 0 | 0 | 0 | |
Intercompany notes receivable | 0 | |||
Investments in subsidiaries | 0 | 0 | 0 | |
Total assets | 441,677 | 416,043 | 281,130 | |
Current liabilities: | ||||
Accounts payable | 23,968 | 28,751 | 13,739 | |
Accrued liabilities | 40,391 | 31,919 | 57,172 | |
Current portion of long-term debt | 0 | 0 | 0 | |
Total current liabilities | 64,359 | 60,670 | 70,911 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 2,593 | 0 | 0 | |
Intercompany notes payable | 199,460 | |||
Deferred income taxes | 15,935 | 12,811 | 7,805 | |
Other long-term liabilities | (593) | (353) | 0 | |
Total long-term liabilities | 17,935 | 12,458 | 207,265 | |
Total member equity | 359,383 | 342,915 | 2,954 | |
Total liabilities and member equity | 441,677 | 416,043 | 281,130 | |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | $ 0 |
Credit card receivables | 0 | 0 | 0 | |
Merchandise inventories | 0 | 0 | 0 | |
Other current assets | (150) | (587) | (2,878) | |
Total current assets | (150) | (587) | (2,878) | |
Property and equipment, net | 0 | 0 | 0 | |
Intangible assets, net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Other long-term assets | 0 | 0 | 0 | |
Intercompany notes receivable | (199,460) | |||
Investments in subsidiaries | (4,043,686) | (3,706,468) | (4,221,799) | |
Total assets | (4,043,836) | (3,707,055) | (4,424,137) | |
Current liabilities: | ||||
Accounts payable | 0 | 0 | 0 | |
Accrued liabilities | (150) | (587) | (2,878) | |
Current portion of long-term debt | 0 | 0 | 0 | |
Total current liabilities | (150) | (587) | (2,878) | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 0 | 0 | 0 | |
Intercompany notes payable | (199,460) | |||
Deferred income taxes | 0 | 0 | 0 | |
Other long-term liabilities | 0 | 0 | 0 | |
Total long-term liabilities | 0 | 0 | (199,460) | |
Total member equity | (4,043,686) | (3,706,468) | (4,221,799) | |
Total liabilities and member equity | $ (4,043,836) | $ (3,707,055) | $ (4,424,137) |
Condensed Consolidating Finan61
Condensed Consolidating Financial Information (with respect to NMG's obligations under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes) - Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | Jul. 29, 2017 | |
Condensed Consolidating Financial Information | ||||||
Revenues | $ 1,482,118 | $ 1,395,576 | $ 2,602,417 | $ 2,474,683 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 1,024,056 | 982,465 | 1,746,943 | 1,682,360 | ||
Selling, general and administrative expenses (excluding depreciation) | 322,359 | 307,718 | 617,639 | 584,314 | ||
Income from credit card program | (14,065) | (16,750) | (25,929) | (30,418) | ||
Depreciation expense | 53,428 | 57,213 | 108,656 | 114,097 | ||
Other expenses (income) | 12,614 | 5,211 | 15,454 | 12,029 | ||
Impairment charges | 0 | $ 357,000 | 153,772 | 0 | 153,772 | $ 510,700 |
Operating earnings (loss) | 59,442 | (120,377) | 90,421 | (95,072) | ||
Interest expense (income), net | 76,549 | 74,197 | 152,647 | 146,280 | ||
Loss before income taxes | (17,107) | (194,574) | (62,226) | (241,352) | ||
Income tax expense (benefit) | (389,639) | (77,505) | (408,541) | (100,770) | ||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Total other comprehensive earnings (loss), net of tax | 14,655 | 3,670 | 25,052 | 4,640 | ||
Total comprehensive earnings (loss) | 387,187 | (113,399) | 371,367 | (135,942) | ||
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 1,482,118 | 1,395,576 | 2,602,417 | 2,474,683 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 1,024,056 | 982,465 | 1,746,943 | 1,682,360 | ||
Selling, general and administrative expenses (excluding depreciation) | 322,359 | 307,718 | 617,639 | 584,314 | ||
Income from credit card program | (14,065) | (16,750) | (25,929) | (30,418) | ||
Depreciation expense | 53,428 | 57,213 | 108,656 | 114,097 | ||
Amortization of intangible assets and favorable lease commitments | 24,284 | 26,324 | 49,233 | 53,601 | ||
Other expenses (income) | 12,614 | 5,211 | 15,454 | 12,029 | ||
Impairment charges | 153,772 | 153,772 | ||||
Operating earnings (loss) | 59,442 | (120,377) | 90,421 | (95,072) | ||
Interest expense (income), net | 76,549 | 74,197 | 152,647 | 146,280 | ||
Intercompany royalty charges (income) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 | ||
Loss before income taxes | (17,107) | (194,574) | (62,226) | (241,352) | ||
Income tax expense (benefit) | (389,639) | (77,505) | (408,541) | (100,770) | ||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Total other comprehensive earnings (loss), net of tax | 14,655 | 3,670 | 25,052 | 4,640 | ||
Total comprehensive earnings (loss) | 387,187 | (113,399) | 371,367 | (135,942) | ||
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | Company | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 0 | 0 | 0 | 0 | ||
Selling, general and administrative expenses (excluding depreciation) | 0 | 0 | 0 | 0 | ||
Income from credit card program | 0 | 0 | 0 | 0 | ||
Depreciation expense | 0 | 0 | 0 | 0 | ||
Amortization of intangible assets and favorable lease commitments | 0 | 0 | 0 | 0 | ||
Other expenses (income) | 0 | 0 | 0 | 0 | ||
Impairment charges | 0 | 0 | ||||
Operating earnings (loss) | 0 | 0 | 0 | 0 | ||
Interest expense (income), net | 0 | 0 | 0 | 0 | ||
Intercompany royalty charges (income) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | (372,532) | 117,069 | (346,315) | 140,582 | ||
Loss before income taxes | 372,532 | (117,069) | 346,315 | (140,582) | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Total other comprehensive earnings (loss), net of tax | 14,655 | 3,670 | 25,052 | 4,640 | ||
Total comprehensive earnings (loss) | 387,187 | (113,399) | 371,367 | (135,942) | ||
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | NMG | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 1,177,621 | 1,131,021 | 2,027,767 | 1,967,626 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 814,745 | 795,422 | 1,366,694 | 1,339,960 | ||
Selling, general and administrative expenses (excluding depreciation) | 262,280 | 254,906 | 499,345 | 480,846 | ||
Income from credit card program | (12,621) | (15,244) | (23,152) | (27,673) | ||
Depreciation expense | 47,267 | 52,895 | 96,526 | 105,081 | ||
Amortization of intangible assets and favorable lease commitments | 12,416 | 13,643 | 25,401 | 28,075 | ||
Other expenses (income) | 12,614 | 4,564 | 15,454 | 12,687 | ||
Impairment charges | 153,772 | 153,772 | ||||
Operating earnings (loss) | 40,920 | (128,937) | 47,499 | (125,122) | ||
Interest expense (income), net | 76,622 | 73,979 | 152,752 | 146,069 | ||
Intercompany royalty charges (income) | 49,364 | 42,440 | 88,797 | 76,444 | ||
Equity in loss (earnings) of subsidiaries | (66,776) | (49,390) | (131,061) | (105,469) | ||
Loss before income taxes | (18,290) | (195,966) | (62,989) | (242,166) | ||
Income tax expense (benefit) | (390,822) | (78,897) | (409,304) | (101,584) | ||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Total other comprehensive earnings (loss), net of tax | 10,088 | 12,246 | 14,331 | 10,720 | ||
Total comprehensive earnings (loss) | 382,620 | (104,823) | 360,646 | (129,862) | ||
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | Guarantor Subsidiaries | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 215,790 | 201,598 | 411,849 | 386,662 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 153,024 | 148,810 | 276,591 | 265,919 | ||
Selling, general and administrative expenses (excluding depreciation) | 36,450 | 35,746 | 71,773 | 69,502 | ||
Income from credit card program | (1,444) | (1,506) | (2,777) | (2,745) | ||
Depreciation expense | 4,163 | 4,025 | 8,155 | 8,445 | ||
Amortization of intangible assets and favorable lease commitments | 11,468 | 11,564 | 23,032 | 23,251 | ||
Other expenses (income) | 0 | 0 | 0 | 0 | ||
Impairment charges | 0 | 0 | ||||
Operating earnings (loss) | 12,129 | 2,959 | 35,075 | 22,290 | ||
Interest expense (income), net | 0 | (1,446) | 0 | (2,881) | ||
Intercompany royalty charges (income) | (49,364) | (42,440) | (88,797) | (76,444) | ||
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 | ||
Loss before income taxes | 61,493 | 46,845 | 123,872 | 101,615 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net earnings (loss) | 61,493 | 46,845 | 123,872 | 101,615 | ||
Total other comprehensive earnings (loss), net of tax | 0 | 0 | 0 | 0 | ||
Total comprehensive earnings (loss) | 61,493 | 46,845 | 123,872 | 101,615 | ||
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 88,707 | 62,957 | 162,801 | 120,395 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 56,287 | 38,233 | 103,658 | 76,481 | ||
Selling, general and administrative expenses (excluding depreciation) | 23,629 | 17,066 | 46,521 | 33,966 | ||
Income from credit card program | 0 | 0 | 0 | 0 | ||
Depreciation expense | 1,998 | 293 | 3,975 | 571 | ||
Amortization of intangible assets and favorable lease commitments | 400 | 1,117 | 800 | 2,275 | ||
Other expenses (income) | 0 | 647 | 0 | (658) | ||
Impairment charges | 0 | 0 | ||||
Operating earnings (loss) | 6,393 | 5,601 | 7,847 | 7,760 | ||
Interest expense (income), net | (73) | 1,664 | (105) | 3,092 | ||
Intercompany royalty charges (income) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 | ||
Loss before income taxes | 6,466 | 3,937 | 7,952 | 4,668 | ||
Income tax expense (benefit) | 1,183 | 1,392 | 763 | 814 | ||
Net earnings (loss) | 5,283 | 2,545 | 7,189 | 3,854 | ||
Total other comprehensive earnings (loss), net of tax | 4,567 | (8,576) | 10,721 | (6,080) | ||
Total comprehensive earnings (loss) | 9,850 | (6,031) | 17,910 | (2,226) | ||
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Eliminations | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 0 | 0 | 0 | 0 | ||
Selling, general and administrative expenses (excluding depreciation) | 0 | 0 | 0 | 0 | ||
Income from credit card program | 0 | 0 | 0 | 0 | ||
Depreciation expense | 0 | 0 | 0 | 0 | ||
Amortization of intangible assets and favorable lease commitments | 0 | 0 | 0 | 0 | ||
Other expenses (income) | 0 | 0 | 0 | 0 | ||
Impairment charges | 0 | 0 | ||||
Operating earnings (loss) | 0 | 0 | 0 | 0 | ||
Interest expense (income), net | 0 | 0 | 0 | 0 | ||
Intercompany royalty charges (income) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | 439,308 | (67,679) | 477,376 | (35,113) | ||
Loss before income taxes | (439,308) | 67,679 | (477,376) | 35,113 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net earnings (loss) | (439,308) | 67,679 | (477,376) | 35,113 | ||
Total other comprehensive earnings (loss), net of tax | (14,655) | (3,670) | (25,052) | (4,640) | ||
Total comprehensive earnings (loss) | $ (453,963) | $ 64,009 | $ (502,428) | $ 30,473 |
Condensed Consolidating Finan62
Condensed Consolidating Financial Information (with respect to NMG's obligations under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes) - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | Jul. 29, 2017 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||||
Net earnings (loss) | $ 372,532 | $ (117,069) | $ 346,315 | $ (140,582) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 170,127 | 179,962 | ||||
Impairment charges | 0 | $ 357,000 | 153,772 | 0 | 153,772 | $ 510,700 |
Deferred income taxes | (402,981) | (89,374) | ||||
Payment-in-kind interest | 29,289 | 0 | ||||
Other | (806) | 2,338 | ||||
Net cash provided by operating activities | 195,544 | 117,423 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | (65,796) | (115,698) | ||||
Net cash used for investing activities | (65,796) | (115,698) | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 450,163 | 385,000 | ||||
Debt issuance costs paid | 0 | (5,359) | ||||
Repurchase of stock | (266) | 0 | ||||
Shares withheld for remittance of employee taxes | (332) | 0 | ||||
Net cash used for financing activities | (143,717) | (15,072) | ||||
Effect of exchange rate changes on cash and cash equivalents | 518 | (53) | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | (13,451) | (13,400) | ||||
Beginning balance | 49,239 | 61,843 | 61,843 | |||
Ending balance | 35,788 | 49,239 | 48,443 | 35,788 | 48,443 | 49,239 |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | ||||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 170,127 | 179,962 | ||||
Impairment charges | 153,772 | 153,772 | ||||
Deferred income taxes | (402,981) | (89,374) | ||||
Payment-in-kind interest | 29,289 | |||||
Other | (806) | 2,338 | ||||
Intercompany royalty income payable (receivable) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 | ||
Changes in operating assets and liabilities, net | 53,600 | 11,307 | ||||
Net cash provided by operating activities | 195,544 | 117,423 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | (65,796) | (115,698) | ||||
Net cash used for investing activities | (65,796) | (115,698) | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 450,163 | 385,000 | ||||
Repayment of borrowings | (593,282) | (394,713) | ||||
Debt issuance costs paid | (5,359) | |||||
Repurchase of stock | (266) | |||||
Shares withheld for remittance of employee taxes | (332) | |||||
Net cash used for financing activities | (143,717) | (15,072) | ||||
Effect of exchange rate changes on cash and cash equivalents | 518 | (53) | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | (13,451) | (13,400) | ||||
Beginning balance | 49,239 | 61,843 | 61,843 | |||
Ending balance | 35,788 | 49,239 | 48,443 | 35,788 | 48,443 | 49,239 |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | Company | ||||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 0 | 0 | ||||
Impairment charges | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Payment-in-kind interest | 0 | |||||
Other | 0 | 0 | ||||
Intercompany royalty income payable (receivable) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | (372,532) | 117,069 | (346,315) | 140,582 | ||
Changes in operating assets and liabilities, net | 0 | 0 | ||||
Net cash provided by operating activities | 0 | 0 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | 0 | 0 | ||||
Net cash used for investing activities | 0 | 0 | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 0 | 0 | ||||
Repayment of borrowings | 0 | 0 | ||||
Debt issuance costs paid | 0 | |||||
Repurchase of stock | 0 | |||||
Shares withheld for remittance of employee taxes | 0 | |||||
Net cash used for financing activities | 0 | 0 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | 0 | 0 | ||||
Beginning balance | 0 | 0 | 0 | |||
Ending balance | 0 | 0 | 0 | 0 | 0 | 0 |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | NMG | ||||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 134,165 | 145,420 | ||||
Impairment charges | 153,772 | 153,772 | ||||
Deferred income taxes | (402,691) | (86,627) | ||||
Payment-in-kind interest | 29,289 | |||||
Other | 1,595 | (1,943) | ||||
Intercompany royalty income payable (receivable) | 49,364 | 42,440 | 88,797 | 76,444 | ||
Equity in loss (earnings) of subsidiaries | (66,776) | (49,390) | (131,061) | (105,469) | ||
Changes in operating assets and liabilities, net | 142,090 | 76,232 | ||||
Net cash provided by operating activities | 208,499 | 117,247 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | (59,417) | (99,006) | ||||
Net cash used for investing activities | (59,417) | (99,006) | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 432,000 | 385,000 | ||||
Repayment of borrowings | (577,713) | (394,713) | ||||
Debt issuance costs paid | (5,359) | |||||
Repurchase of stock | (266) | |||||
Shares withheld for remittance of employee taxes | (332) | |||||
Net cash used for financing activities | (146,311) | (15,072) | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | 2,771 | 3,169 | ||||
Beginning balance | 28,301 | 39,791 | 39,791 | |||
Ending balance | 31,072 | 28,301 | 42,960 | 31,072 | 42,960 | 28,301 |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | Guarantor Subsidiaries | ||||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||||
Net earnings (loss) | 61,493 | 46,845 | 123,872 | 101,615 | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 31,187 | 31,696 | ||||
Impairment charges | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Payment-in-kind interest | 0 | |||||
Other | 420 | (1,075) | ||||
Intercompany royalty income payable (receivable) | (49,364) | (42,440) | (88,797) | (76,444) | ||
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 | ||
Changes in operating assets and liabilities, net | (63,245) | (42,860) | ||||
Net cash provided by operating activities | 3,437 | 12,932 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | (3,232) | (13,272) | ||||
Net cash used for investing activities | (3,232) | (13,272) | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 0 | 0 | ||||
Repayment of borrowings | 0 | 0 | ||||
Debt issuance costs paid | 0 | |||||
Repurchase of stock | 0 | |||||
Shares withheld for remittance of employee taxes | 0 | |||||
Net cash used for financing activities | 0 | 0 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | 205 | (340) | ||||
Beginning balance | 649 | 936 | 936 | |||
Ending balance | 854 | 649 | 596 | 854 | 596 | 649 |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||||
Net earnings (loss) | 5,283 | 2,545 | 7,189 | 3,854 | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 4,775 | 2,846 | ||||
Impairment charges | 0 | 0 | ||||
Deferred income taxes | (290) | (2,747) | ||||
Payment-in-kind interest | 0 | |||||
Other | (2,821) | 5,356 | ||||
Intercompany royalty income payable (receivable) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 | ||
Changes in operating assets and liabilities, net | (25,245) | (22,065) | ||||
Net cash provided by operating activities | (16,392) | (12,756) | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | (3,147) | (3,420) | ||||
Net cash used for investing activities | (3,147) | (3,420) | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 18,163 | 0 | ||||
Repayment of borrowings | (15,569) | 0 | ||||
Debt issuance costs paid | 0 | |||||
Repurchase of stock | 0 | |||||
Shares withheld for remittance of employee taxes | 0 | |||||
Net cash used for financing activities | 2,594 | 0 | ||||
Effect of exchange rate changes on cash and cash equivalents | 518 | (53) | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | (16,427) | (16,229) | ||||
Beginning balance | 20,289 | 21,116 | 21,116 | |||
Ending balance | 3,862 | 20,289 | 4,887 | 3,862 | 4,887 | 20,289 |
Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes | Eliminations | ||||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||||
Net earnings (loss) | (439,308) | 67,679 | (477,376) | 35,113 | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 0 | 0 | ||||
Impairment charges | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Payment-in-kind interest | 0 | |||||
Other | 0 | 0 | ||||
Intercompany royalty income payable (receivable) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | 439,308 | (67,679) | 477,376 | (35,113) | ||
Changes in operating assets and liabilities, net | 0 | 0 | ||||
Net cash provided by operating activities | 0 | 0 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | 0 | 0 | ||||
Net cash used for investing activities | 0 | 0 | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 0 | 0 | ||||
Repayment of borrowings | 0 | 0 | ||||
Debt issuance costs paid | 0 | |||||
Repurchase of stock | 0 | |||||
Shares withheld for remittance of employee taxes | 0 | |||||
Net cash used for financing activities | 0 | 0 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | 0 | 0 | ||||
Beginning balance | 0 | 0 | 0 | |||
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidating Finan63
Condensed Consolidating Financial Information (with respect to NMG's obligations under the Senior Secured Credit Facilities, Cash Pay Notes and PIK Toggle Notes) - Unrestricted Subsidiaries (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jan. 27, 2018 | Oct. 28, 2017 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | Jul. 29, 2017 | |
Condensed Consolidating Financial Information | ||||||
Total assets | $ 7,626,935 | $ 8,156,585 | $ 7,626,935 | $ 8,156,585 | $ 7,703,516 | |
Revenues | 1,482,118 | 1,395,576 | 2,602,417 | 2,474,683 | ||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Reportable Legal Entities | Intercompany note payable | Non- Guarantor Subsidiaries | ||||||
Condensed Consolidating Financial Information | ||||||
Net interest income | 1,500 | $ 1,500 | ||||
Reportable Legal Entities | Cash Pay Notes and PIK Toggle Notes | Unrestricted Subsidiary | ||||||
Condensed Consolidating Financial Information | ||||||
Total assets | 441,609 | 441,609 | 415,974 | |||
Net assets | 151,079 | 151,079 | $ 137,661 | |||
Revenues | 88,707 | 62,957 | 162,801 | 120,395 | ||
Net earnings (loss) | $ 3,758 | $ 2,544 | $ 4,139 | $ 3,857 |
Condensed Consolidating Finan64
Condensed Consolidating Financial Information (with respect to NMG's obligations under the 2028 Debentures) - Balance Sheets (Details) - USD ($) $ in Thousands | Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 35,788 | $ 49,239 | $ 48,443 | $ 61,843 |
Credit card receivables | 42,258 | 38,836 | 37,437 | |
Merchandise inventories | 1,137,178 | 1,153,657 | 1,213,483 | |
Other current assets | 143,452 | 146,439 | 130,249 | |
Total current assets | 1,358,676 | 1,388,171 | 1,429,612 | |
Property and equipment, net | 1,557,112 | 1,586,961 | 1,600,816 | |
Intangible assets, net | 2,786,041 | 2,831,416 | 3,036,228 | |
Goodwill | 1,887,729 | 1,880,894 | 2,067,449 | |
Other long-term assets | 37,377 | 16,074 | 22,480 | |
Total assets | 7,626,935 | 7,703,516 | 8,156,585 | |
Current liabilities: | ||||
Accounts payable | 283,805 | 316,830 | 384,148 | |
Accrued liabilities | 532,081 | 456,937 | 509,629 | |
Current portion of long-term debt | 29,426 | 29,426 | 29,426 | |
Total current liabilities | 845,312 | 803,193 | 923,203 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 4,572,262 | 4,675,540 | 4,585,911 | |
Deferred income taxes | 762,840 | 1,156,833 | 1,211,788 | |
Total long-term liabilities | 5,942,609 | 6,433,671 | 6,423,571 | |
Total member equity | 839,014 | 466,652 | 809,811 | |
Total liabilities and member equity | 7,626,935 | 7,703,516 | 8,156,585 | |
2028 Debentures | ||||
Current assets: | ||||
Cash and cash equivalents | 35,788 | 49,239 | 48,443 | 61,843 |
Credit card receivables | 42,258 | 38,836 | 37,437 | |
Merchandise inventories | 1,137,178 | 1,153,657 | 1,213,483 | |
Other current assets | 143,452 | 146,439 | 130,249 | |
Total current assets | 1,358,676 | 1,388,171 | 1,429,612 | |
Property and equipment, net | 1,557,112 | 1,586,961 | 1,600,816 | |
Intangible assets, net | 2,786,041 | 2,831,416 | 3,036,228 | |
Goodwill | 1,887,729 | 1,880,894 | 2,067,449 | |
Other long-term assets | 37,377 | 16,074 | 22,480 | |
Investments in subsidiaries | 0 | 0 | 0 | |
Total assets | 7,626,935 | 7,703,516 | 8,156,585 | |
Current liabilities: | ||||
Accounts payable | 283,805 | 316,830 | 384,148 | |
Accrued liabilities | 532,081 | 456,937 | 509,629 | |
Current portion of long-term debt | 29,426 | 29,426 | 29,426 | |
Total current liabilities | 845,312 | 803,193 | 923,203 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 4,572,262 | 4,675,540 | 4,585,911 | |
Deferred income taxes | 762,840 | 1,156,833 | 1,211,788 | |
Other long-term liabilities | 607,507 | 601,298 | 625,872 | |
Total long-term liabilities | 5,942,609 | 6,433,671 | 6,423,571 | |
Total member equity | 839,014 | 466,652 | 809,811 | |
Total liabilities and member equity | 7,626,935 | 7,703,516 | 8,156,585 | |
2028 Debentures | Reportable Legal Entities | Company | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Credit card receivables | 0 | 0 | 0 | |
Merchandise inventories | 0 | 0 | 0 | |
Other current assets | 0 | 0 | 0 | |
Total current assets | 0 | 0 | 0 | |
Property and equipment, net | 0 | 0 | 0 | |
Intangible assets, net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Other long-term assets | 0 | 0 | 0 | |
Investments in subsidiaries | 839,014 | 466,652 | 809,811 | |
Total assets | 839,014 | 466,652 | 809,811 | |
Current liabilities: | ||||
Accounts payable | 0 | 0 | 0 | |
Accrued liabilities | 0 | 0 | 0 | |
Current portion of long-term debt | 0 | 0 | 0 | |
Total current liabilities | 0 | 0 | 0 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 0 | 0 | 0 | |
Deferred income taxes | 0 | 0 | 0 | |
Other long-term liabilities | 0 | 0 | 0 | |
Total long-term liabilities | 0 | 0 | 0 | |
Total member equity | 839,014 | 466,652 | 809,811 | |
Total liabilities and member equity | 839,014 | 466,652 | 809,811 | |
2028 Debentures | Reportable Legal Entities | NMG | ||||
Current assets: | ||||
Cash and cash equivalents | 31,072 | 28,301 | 42,960 | 39,791 |
Credit card receivables | 36,268 | 35,091 | 33,156 | |
Merchandise inventories | 880,056 | 915,910 | 961,538 | |
Other current assets | 127,745 | 135,174 | 118,969 | |
Total current assets | 1,075,141 | 1,114,476 | 1,156,623 | |
Property and equipment, net | 1,309,679 | 1,333,487 | 1,448,157 | |
Intangible assets, net | 484,355 | 509,757 | 536,532 | |
Goodwill | 1,338,844 | 1,338,844 | 1,412,147 | |
Other long-term assets | 36,074 | 14,384 | 20,507 | |
Investments in subsidiaries | 3,204,672 | 3,239,816 | 3,411,988 | |
Total assets | 7,448,765 | 7,550,764 | 7,985,954 | |
Current liabilities: | ||||
Accounts payable | 259,837 | 288,079 | 370,409 | |
Accrued liabilities | 401,227 | 350,773 | 365,610 | |
Current portion of long-term debt | 29,426 | 29,426 | 29,426 | |
Total current liabilities | 690,490 | 668,278 | 765,445 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 4,569,669 | 4,675,540 | 4,585,911 | |
Deferred income taxes | 746,905 | 1,144,022 | 1,203,983 | |
Other long-term liabilities | 602,687 | 596,272 | 620,804 | |
Total long-term liabilities | 5,919,261 | 6,415,834 | 6,410,698 | |
Total member equity | 839,014 | 466,652 | 809,811 | |
Total liabilities and member equity | 7,448,765 | 7,550,764 | 7,985,954 | |
2028 Debentures | Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 4,716 | 20,938 | 5,483 | 22,052 |
Credit card receivables | 5,990 | 3,745 | 4,281 | |
Merchandise inventories | 257,122 | 237,747 | 251,945 | |
Other current assets | 15,857 | 11,852 | 11,280 | |
Total current assets | 283,685 | 274,282 | 272,989 | |
Property and equipment, net | 247,433 | 253,474 | 152,659 | |
Intangible assets, net | 2,301,686 | 2,321,659 | 2,499,696 | |
Goodwill | 548,885 | 542,050 | 655,302 | |
Other long-term assets | 1,303 | 1,690 | 1,973 | |
Investments in subsidiaries | 0 | 0 | 0 | |
Total assets | 3,382,992 | 3,393,155 | 3,582,619 | |
Current liabilities: | ||||
Accounts payable | 23,968 | 28,751 | 13,739 | |
Accrued liabilities | 131,004 | 106,751 | 144,019 | |
Current portion of long-term debt | 0 | 0 | 0 | |
Total current liabilities | 154,972 | 135,502 | 157,758 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 2,593 | 0 | 0 | |
Deferred income taxes | 15,935 | 12,811 | 7,805 | |
Other long-term liabilities | 4,820 | 5,026 | 5,068 | |
Total long-term liabilities | 23,348 | 17,837 | 12,873 | |
Total member equity | 3,204,672 | 3,239,816 | 3,411,988 | |
Total liabilities and member equity | 3,382,992 | 3,393,155 | 3,582,619 | |
2028 Debentures | Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | $ 0 |
Credit card receivables | 0 | 0 | 0 | |
Merchandise inventories | 0 | 0 | 0 | |
Other current assets | (150) | (587) | 0 | |
Total current assets | (150) | (587) | 0 | |
Property and equipment, net | 0 | 0 | 0 | |
Intangible assets, net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Other long-term assets | 0 | 0 | 0 | |
Investments in subsidiaries | (4,043,686) | (3,706,468) | (4,221,799) | |
Total assets | (4,043,836) | (3,707,055) | (4,221,799) | |
Current liabilities: | ||||
Accounts payable | 0 | 0 | 0 | |
Accrued liabilities | (150) | (587) | 0 | |
Current portion of long-term debt | 0 | 0 | 0 | |
Total current liabilities | (150) | (587) | 0 | |
Long-term liabilities: | ||||
Long-term debt, net of debt issuance costs | 0 | 0 | 0 | |
Deferred income taxes | 0 | 0 | 0 | |
Other long-term liabilities | 0 | 0 | 0 | |
Total long-term liabilities | 0 | 0 | 0 | |
Total member equity | (4,043,686) | (3,706,468) | (4,221,799) | |
Total liabilities and member equity | $ (4,043,836) | $ (3,707,055) | $ (4,221,799) |
Condensed Consolidating Finan65
Condensed Consolidating Financial Information (with respect to NMG's obligations under the 2028 Debentures) - Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | Jul. 29, 2017 | |
Condensed Consolidating Financial Information | ||||||
Revenues | $ 1,482,118 | $ 1,395,576 | $ 2,602,417 | $ 2,474,683 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 1,024,056 | 982,465 | 1,746,943 | 1,682,360 | ||
Selling, general and administrative expenses (excluding depreciation) | 322,359 | 307,718 | 617,639 | 584,314 | ||
Income from credit card program | (14,065) | (16,750) | (25,929) | (30,418) | ||
Depreciation expense | 53,428 | 57,213 | 108,656 | 114,097 | ||
Other expenses (income) | 12,614 | 5,211 | 15,454 | 12,029 | ||
Impairment charges | 0 | $ 357,000 | 153,772 | 0 | 153,772 | $ 510,700 |
Operating earnings (loss) | 59,442 | (120,377) | 90,421 | (95,072) | ||
Interest expense (income), net | 76,549 | 74,197 | 152,647 | 146,280 | ||
Loss before income taxes | (17,107) | (194,574) | (62,226) | (241,352) | ||
Income tax expense (benefit) | (389,639) | (77,505) | (408,541) | (100,770) | ||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Total other comprehensive earnings (loss), net of tax | 14,655 | 3,670 | 25,052 | 4,640 | ||
Total comprehensive earnings (loss) | 387,187 | (113,399) | 371,367 | (135,942) | ||
2028 Debentures | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 1,482,118 | 1,395,576 | 2,602,417 | 2,474,683 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 1,024,056 | 982,465 | 1,746,943 | 1,682,360 | ||
Selling, general and administrative expenses (excluding depreciation) | 322,359 | 307,718 | 617,639 | 584,314 | ||
Income from credit card program | (14,065) | (16,750) | (25,929) | (30,418) | ||
Depreciation expense | 53,428 | 57,213 | 108,656 | 114,097 | ||
Amortization of intangible assets and favorable lease commitments | 24,284 | 26,324 | 49,233 | 53,601 | ||
Other expenses (income) | 12,614 | 5,211 | 15,454 | 12,029 | ||
Impairment charges | 153,772 | 153,772 | ||||
Operating earnings (loss) | 59,442 | (120,377) | 90,421 | (95,072) | ||
Interest expense (income), net | 76,549 | 74,197 | 152,647 | 146,280 | ||
Intercompany royalty charges (income) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 | ||
Loss before income taxes | (17,107) | (194,574) | (62,226) | (241,352) | ||
Income tax expense (benefit) | (389,639) | (77,505) | (408,541) | (100,770) | ||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Total other comprehensive earnings (loss), net of tax | 14,655 | 3,670 | 25,052 | 4,640 | ||
Total comprehensive earnings (loss) | 387,187 | (113,399) | 371,367 | (135,942) | ||
2028 Debentures | Reportable Legal Entities | Company | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 0 | 0 | 0 | 0 | ||
Selling, general and administrative expenses (excluding depreciation) | 0 | 0 | 0 | 0 | ||
Income from credit card program | 0 | 0 | 0 | 0 | ||
Depreciation expense | 0 | 0 | 0 | 0 | ||
Amortization of intangible assets and favorable lease commitments | 0 | 0 | 0 | 0 | ||
Other expenses (income) | 0 | 0 | 0 | 0 | ||
Impairment charges | 0 | 0 | ||||
Operating earnings (loss) | 0 | 0 | 0 | 0 | ||
Interest expense (income), net | 0 | 0 | 0 | 0 | ||
Intercompany royalty charges (income) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | (372,532) | 117,069 | (346,315) | 140,582 | ||
Loss before income taxes | 372,532 | (117,069) | 346,315 | (140,582) | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Total other comprehensive earnings (loss), net of tax | 14,655 | 3,670 | 25,052 | 4,640 | ||
Total comprehensive earnings (loss) | 387,187 | (113,399) | 371,367 | (135,942) | ||
2028 Debentures | Reportable Legal Entities | NMG | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 1,177,621 | 1,131,021 | 2,027,767 | 1,967,626 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 814,745 | 795,422 | 1,366,694 | 1,339,960 | ||
Selling, general and administrative expenses (excluding depreciation) | 262,280 | 254,906 | 499,345 | 480,846 | ||
Income from credit card program | (12,621) | (15,244) | (23,152) | (27,673) | ||
Depreciation expense | 47,267 | 52,895 | 96,526 | 105,081 | ||
Amortization of intangible assets and favorable lease commitments | 12,416 | 13,643 | 25,401 | 28,075 | ||
Other expenses (income) | 12,614 | 4,564 | 15,454 | 12,687 | ||
Impairment charges | 153,772 | 153,772 | ||||
Operating earnings (loss) | 40,920 | (128,937) | 47,499 | (125,122) | ||
Interest expense (income), net | 76,622 | 73,979 | 152,752 | 146,069 | ||
Intercompany royalty charges (income) | 49,364 | 42,440 | 88,797 | 76,444 | ||
Equity in loss (earnings) of subsidiaries | (66,776) | (49,390) | (131,061) | (105,469) | ||
Loss before income taxes | (18,290) | (195,966) | (62,989) | (242,166) | ||
Income tax expense (benefit) | (390,822) | (78,897) | (409,304) | (101,584) | ||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Total other comprehensive earnings (loss), net of tax | 10,088 | 12,246 | 14,331 | 10,720 | ||
Total comprehensive earnings (loss) | 382,620 | (104,823) | 360,646 | (129,862) | ||
2028 Debentures | Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 304,497 | 264,555 | 574,650 | 507,057 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 209,311 | 187,043 | 380,249 | 342,400 | ||
Selling, general and administrative expenses (excluding depreciation) | 60,079 | 52,812 | 118,294 | 103,468 | ||
Income from credit card program | (1,444) | (1,506) | (2,777) | (2,745) | ||
Depreciation expense | 6,161 | 4,318 | 12,130 | 9,016 | ||
Amortization of intangible assets and favorable lease commitments | 11,868 | 12,681 | 23,832 | 25,526 | ||
Other expenses (income) | 0 | 647 | 0 | (658) | ||
Impairment charges | 0 | 0 | ||||
Operating earnings (loss) | 18,522 | 8,560 | 42,922 | 30,050 | ||
Interest expense (income), net | (73) | 218 | (105) | 211 | ||
Intercompany royalty charges (income) | (49,364) | (42,440) | (88,797) | (76,444) | ||
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 | ||
Loss before income taxes | 67,959 | 50,782 | 131,824 | 106,283 | ||
Income tax expense (benefit) | 1,183 | 1,392 | 763 | 814 | ||
Net earnings (loss) | 66,776 | 49,390 | 131,061 | 105,469 | ||
Total other comprehensive earnings (loss), net of tax | 4,567 | (8,576) | 10,721 | (6,080) | ||
Total comprehensive earnings (loss) | 71,343 | 40,814 | 141,782 | 99,389 | ||
2028 Debentures | Eliminations | ||||||
Condensed Consolidating Financial Information | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Cost of goods sold including buying and occupancy costs (excluding depreciation) | 0 | 0 | 0 | 0 | ||
Selling, general and administrative expenses (excluding depreciation) | 0 | 0 | 0 | 0 | ||
Income from credit card program | 0 | 0 | 0 | 0 | ||
Depreciation expense | 0 | 0 | 0 | 0 | ||
Amortization of intangible assets and favorable lease commitments | 0 | 0 | 0 | 0 | ||
Other expenses (income) | 0 | 0 | 0 | 0 | ||
Impairment charges | 0 | 0 | ||||
Operating earnings (loss) | 0 | 0 | 0 | 0 | ||
Interest expense (income), net | 0 | 0 | 0 | 0 | ||
Intercompany royalty charges (income) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | 439,308 | (67,679) | 477,376 | (35,113) | ||
Loss before income taxes | (439,308) | 67,679 | (477,376) | 35,113 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net earnings (loss) | (439,308) | 67,679 | (477,376) | 35,113 | ||
Total other comprehensive earnings (loss), net of tax | (14,655) | (3,670) | (25,052) | (4,640) | ||
Total comprehensive earnings (loss) | $ (453,963) | $ 64,009 | $ (502,428) | $ 30,473 |
Condensed Consolidating Finan66
Condensed Consolidating Financial Information (with respect to NMG's obligations under the 2028 Debentures) - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 27, 2018 | Jul. 29, 2017 | Jan. 28, 2017 | Jan. 27, 2018 | Jan. 28, 2017 | Jul. 29, 2017 | |
CASH FLOWS—OPERATING ACTIVITIES | ||||||
Net earnings (loss) | $ 372,532 | $ (117,069) | $ 346,315 | $ (140,582) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 170,127 | 179,962 | ||||
Impairment charges | 0 | $ 357,000 | 153,772 | 0 | 153,772 | $ 510,700 |
Deferred income taxes | (402,981) | (89,374) | ||||
Payment-in-kind interest | 29,289 | 0 | ||||
Other | (806) | 2,338 | ||||
Net cash provided by operating activities | 195,544 | 117,423 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | (65,796) | (115,698) | ||||
Net cash used for investing activities | (65,796) | (115,698) | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 450,163 | 385,000 | ||||
Debt issuance costs paid | 0 | (5,359) | ||||
Repurchase of stock | (266) | 0 | ||||
Shares withheld for remittance of employee taxes | (332) | 0 | ||||
Net cash used for financing activities | (143,717) | (15,072) | ||||
Effect of exchange rate changes on cash and cash equivalents | 518 | (53) | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | (13,451) | (13,400) | ||||
Beginning balance | 49,239 | 61,843 | 61,843 | |||
Ending balance | 35,788 | 49,239 | 48,443 | 35,788 | 48,443 | 49,239 |
2028 Debentures | ||||||
CASH FLOWS—OPERATING ACTIVITIES | ||||||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 170,127 | 179,962 | ||||
Impairment charges | 153,772 | 153,772 | ||||
Deferred income taxes | (402,981) | (89,374) | ||||
Payment-in-kind interest | 29,289 | |||||
Other | (806) | 2,338 | ||||
Intercompany royalty income payable (receivable) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 | ||
Changes in operating assets and liabilities, net | 53,600 | 11,307 | ||||
Net cash provided by operating activities | 195,544 | 117,423 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | (65,796) | (115,698) | ||||
Net cash used for investing activities | (65,796) | (115,698) | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 450,163 | 385,000 | ||||
Repayment of borrowings | (593,282) | (394,713) | ||||
Debt issuance costs paid | (5,359) | |||||
Repurchase of stock | (266) | |||||
Shares withheld for remittance of employee taxes | (332) | |||||
Net cash used for financing activities | (143,717) | (15,072) | ||||
Effect of exchange rate changes on cash and cash equivalents | 518 | (53) | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | (13,451) | (13,400) | ||||
Beginning balance | 49,239 | 61,843 | 61,843 | |||
Ending balance | 35,788 | 49,239 | 48,443 | 35,788 | 48,443 | 49,239 |
2028 Debentures | Reportable Legal Entities | Company | ||||||
CASH FLOWS—OPERATING ACTIVITIES | ||||||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 0 | 0 | ||||
Impairment charges | 0 | 0 | ||||
Deferred income taxes | 0 | |||||
Payment-in-kind interest | 0 | |||||
Other | 0 | 0 | ||||
Intercompany royalty income payable (receivable) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | (372,532) | 117,069 | (346,315) | 140,582 | ||
Changes in operating assets and liabilities, net | 0 | 0 | ||||
Net cash provided by operating activities | 0 | 0 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | 0 | 0 | ||||
Net cash used for investing activities | 0 | 0 | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 0 | 0 | ||||
Repayment of borrowings | 0 | 0 | ||||
Debt issuance costs paid | 0 | |||||
Repurchase of stock | 0 | |||||
Shares withheld for remittance of employee taxes | 0 | |||||
Net cash used for financing activities | 0 | 0 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | 0 | 0 | ||||
Beginning balance | 0 | 0 | 0 | |||
Ending balance | 0 | 0 | 0 | 0 | 0 | 0 |
2028 Debentures | Reportable Legal Entities | NMG | ||||||
CASH FLOWS—OPERATING ACTIVITIES | ||||||
Net earnings (loss) | 372,532 | (117,069) | 346,315 | (140,582) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 134,165 | 145,420 | ||||
Impairment charges | 153,772 | 153,772 | ||||
Deferred income taxes | (402,691) | (86,627) | ||||
Payment-in-kind interest | 29,289 | |||||
Other | 1,595 | (1,943) | ||||
Intercompany royalty income payable (receivable) | 49,364 | 42,440 | 88,797 | 76,444 | ||
Equity in loss (earnings) of subsidiaries | (66,776) | (49,390) | (131,061) | (105,469) | ||
Changes in operating assets and liabilities, net | 142,090 | 76,232 | ||||
Net cash provided by operating activities | 208,499 | 117,247 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | (59,417) | (99,006) | ||||
Net cash used for investing activities | (59,417) | (99,006) | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 432,000 | 385,000 | ||||
Repayment of borrowings | (577,713) | (394,713) | ||||
Debt issuance costs paid | (5,359) | |||||
Repurchase of stock | (266) | |||||
Shares withheld for remittance of employee taxes | (332) | |||||
Net cash used for financing activities | (146,311) | (15,072) | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | 2,771 | 3,169 | ||||
Beginning balance | 28,301 | 39,791 | 39,791 | |||
Ending balance | 31,072 | 28,301 | 42,960 | 31,072 | 42,960 | 28,301 |
2028 Debentures | Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||||
CASH FLOWS—OPERATING ACTIVITIES | ||||||
Net earnings (loss) | 66,776 | 49,390 | 131,061 | 105,469 | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 35,962 | 34,542 | ||||
Impairment charges | 0 | 0 | ||||
Deferred income taxes | (290) | (2,747) | ||||
Payment-in-kind interest | 0 | |||||
Other | (2,401) | 4,281 | ||||
Intercompany royalty income payable (receivable) | (49,364) | (42,440) | (88,797) | (76,444) | ||
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 | ||
Changes in operating assets and liabilities, net | (88,490) | (64,925) | ||||
Net cash provided by operating activities | (12,955) | 176 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | (6,379) | (16,692) | ||||
Net cash used for investing activities | (6,379) | (16,692) | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 18,163 | 0 | ||||
Repayment of borrowings | (15,569) | 0 | ||||
Debt issuance costs paid | 0 | |||||
Repurchase of stock | 0 | |||||
Shares withheld for remittance of employee taxes | 0 | |||||
Net cash used for financing activities | 2,594 | 0 | ||||
Effect of exchange rate changes on cash and cash equivalents | 518 | (53) | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | (16,222) | (16,569) | ||||
Beginning balance | 20,938 | 22,052 | 22,052 | |||
Ending balance | 4,716 | 20,938 | 5,483 | 4,716 | 5,483 | 20,938 |
2028 Debentures | Eliminations | ||||||
CASH FLOWS—OPERATING ACTIVITIES | ||||||
Net earnings (loss) | (439,308) | 67,679 | (477,376) | 35,113 | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 0 | 0 | ||||
Impairment charges | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Payment-in-kind interest | 0 | |||||
Other | 0 | 0 | ||||
Intercompany royalty income payable (receivable) | 0 | 0 | 0 | 0 | ||
Equity in loss (earnings) of subsidiaries | 439,308 | (67,679) | 477,376 | (35,113) | ||
Changes in operating assets and liabilities, net | 0 | |||||
Net cash provided by operating activities | 0 | 0 | ||||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Capital expenditures | 0 | 0 | ||||
Net cash used for investing activities | 0 | 0 | ||||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Borrowings under revolving credit facilities | 0 | 0 | ||||
Repayment of borrowings | 0 | 0 | ||||
Debt issuance costs paid | 0 | |||||
Repurchase of stock | 0 | |||||
Shares withheld for remittance of employee taxes | 0 | |||||
Net cash used for financing activities | 0 | 0 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||
CASH AND CASH EQUIVALENTS | ||||||
Increase (decrease) during the period | 0 | 0 | ||||
Beginning balance | 0 | 0 | 0 | |||
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |