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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)
44
In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans- an Amendment of FASB Statements No. 87, 88, 106 and
132(R)” (SFAS 158). SFAS No. 158 requires entities to:
•Recognize on its balance sheet the funded status (measured as the difference between the fair value
of plan assets and the benefit obligation) of pension and other postretirement benefit plans;
•Recognize, through comprehensive income, certain changes in the funded status of a defined
benefit and post retirement plan in the year in which the changes occur;
•Measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and
•Disclose additional information.
The requirement to recognize the funded status of a benefit plan and the additional disclosure
requirements are effective for fiscal years ended after December 15, 2006. Accordingly, the Company
adopted these requirements of SFAS No.158 at February 3, 2007. The incremental effect from adopting
SFAS No. 158, as of February 3, 2007, on individual line items in the Company’s Consolidated Balance
Sheets at February 3, 2007 follows:
Before After
Application of Application of
SFAS No. 158 Adjustments SFAS No. 158
Deferred Income Taxes........................ $ 22,996 $ 1,832 $ 24,828
Other Long Term Assets ....................... 69,635 (1,651) 67,984
Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,767,018 181 1,767,199
Accrued Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292,280 — 292,280
Other Long Term Liabilities ................... 56,998 3,235 60,233
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,196,209 3,235 1,199,444
Accumulated Other Comprehensive Loss . . . . . . . . (6,326) (3,054) (9,380)
Total Stockholders’ Equity. . . . . . . . . . . . . . . . . . . . . 570,809 (3,054) 567,755
Total Liabilities and Stockholders’ Equity . . . . . . . 1,767,018 181 1,767,199
The requirement to measure plan assets and benefit obligations as of the date of the employer’s fiscal
year-end is effective for fiscal years ending after December 15, 2008. The Company will not elect early
adoption of these additional SFAS No.158 requirements and will adopt these requirements for the fiscal
year ended January 31, 2009.
In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and
Financial Liabilities.” SFAS No. 159 permits entities to choose to measure many financial instruments and
certain other items at fair value. SFAS No. 159 is effective for fiscal years beginning after November 15,
2007. We are currently evaluating the impact of SFAS No. 159.
RECLASSIFICATIONS Certain reclassifications have been made to the prior years’ consolidated
financial statements to provide comparability with the current year’s presentation of Net Gain from Sales
of Assets from Cost of Merchandise Sales and the change in classification of a store from discontinued
operations to continuing operations, see Note 7.