Pep Boys 2006 Annual Report Download - page 107

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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)
68
The following table summarizes information about RSUs during the last three fiscal years (dollars in
thousands except per unit amount):
Fiscal 2006 Fiscal 2005 Fiscal 2004
Weighted average fair value at grant date per unit . . . . . . . . $13.58 $16.71 $22.41
Fair Value at vesting date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,660 $ 881 $ 8
Intrinsic value at conversion date . . . . . . . . . . . . . . . . . . . . . . . $1,075 $ 679 $ 5
Tax benefits realized from conversions . . . . . . . . . . . . . . . . . . $ 734 $ 248 $ 3
At February 3, 2007, there was approximately $3,370 of total unrecognized pre-tax compensation cost
related to non-vested RSUs, which is expected to be recognized over a weighted-average period of
1.7 years.
NOTE 12—ASSET RETIREMENT OBLIGATIONS
At February 3, 2007, the Company has a liability pertaining to the asset retirement obligation in
accrued expenses and other long-term liabilities on its consolidated balance sheet. The following is a
reconciliation of the beginning balance and ending carrying amounts of the Company’s asset retirement
obligation under SFAS 143 from January 29, 2005 through February 3, 2007:
Assetretirementobligation,January29,2005........................... $ 5,057
Assetretirementobligationincurredduringtheperiod................. 43
Assetretirementobligationsettledduringtheperiod .................. (141)
Accretionexpense................................................. 109
Reductioninassetretirementliability................................ (1,945)
AdoptionofFIN47................................................ 3,652
Assetretirementobligation,January28,2006........................... 6,775
Assetretirementobligationincurredduringtheperiod................. 131
Asset retirement obligation settled during the period . . . . . . . . . . . . . . . . . . (130)
Accretionexpense................................................. 269
Assetretirementobligation,February3,2007........................... $ 7,045
In the fourth quarter of fiscal 2005, the Company reviewed and revised its estimated settlement costs.
The Company reversed $1,945 of the liability as the original estimates of the contamination occurrence
rate and the cost to remediate such contaminations proved to be higher than actual experience is yielding.
The Company adopted FIN 47, “Accounting for Conditional Asset Retirement Obligations,” an
interpretation of SFAS 143, “Asset Retirement Obligations” on January 28, 2006. This interpretation
impacted the Company in recognition of legal obligations associated with surrendering its leased
properties. These obligations were previously omitted from the Company’s SFAS 143 analysis due to their
uncertain timing. The impact of adopting FIN 47 was the recognition of net additional leasehold
improvement assets amounting to $470, an asset retirement obligation of $3,652 and a charge of $3,182
($2,021, net of tax), which was included in Cumulative Effect of Change in Accounting Principle in the
accompanying consolidated statement of operations for fiscal year 2005.