Pep Boys 2006 Annual Report Download - page 103

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended February 3, 2007, January 28, 2006 and January 29, 2005
(dollar amounts in thousands, except share data)
64
Equity securities include Pep Boys common stock in the amounts of $817 (2.2% of total plan assets)
and $819 (2.3% of total plan assets) at December 31, 2006 and December 31, 2005, respectively.
Benefit payments, including amounts to be paid from Company assets, and reflecting expected future
service, as appropriate, are expected to be paid as follows:
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,665
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,715
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,395
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,242
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,167
2012–2016......................................................... 25,967
DEFINED CONTRIBUTION PLAN
As discussed above, the SERP includes a non-qualified defined contribution portion for key
employees designated by the Board of Directors. The Company’s contribution expense for the defined
contribution portion of the plan was $603, $560 and $678 for fiscal years 2006, 2005 and 2004, respectively.
The Company has 401(k) savings plans, which cover all full-time employees who are at least 21 years
of age with one or more years of service. The Company contributes the lesser of 50% of the first 6% of a
participant’s contributions or 3% of the participant’s compensation. The Company’s savings plans’
contribution expense was $2,963, $3,126 and $3,463 in fiscal 2006, 2005 and 2004, respectively.
DEFERRED COMPENSATION PLAN
In the first quarter of 2004, the Company adopted a non-qualified deferred compensation plan that
allows its officers and certain other employees to defer up to 20% of their annual salary and 100% of their
annual bonus. Additionally, the first 20% of an officer’s bonus deferred into the Company’s stock is
matched by the Company on a one-for-one basis with the Company’s stock that vests and is expensed over
three years. The shares required to satisfy distributions of voluntary bonus deferrals and the accompanying
match in the Company’s stock are issued under the Stock Incentive Plans.
RABBI TRUST
The Company has accounted for the non-qualified deferred compensation plan and the SERP in
accordance with EITF 97-14, “Accounting for Deferred Compensation Arrangements Where Amounts
Earned are Held in a Rabbi Trust and Invested.” The Company establishes and maintains a deferred
liability for these plans. The Company plans to fund this liability by remitting the officers’ deferrals to a
Rabbi Trust where these deferrals are invested in various securities, including life insurance policies. These
assets are included in non-current other assets. Accordingly, all gains and losses on these underlying
investments, which are held in the Rabbi Trust to fund the deferred liability, are recognized in the
Company’s consolidated statement of operations. Under these plans, there were liabilities of $20,761 at
February 3, 2007 and $16,137 at January 28, 2006.