Pep Boys 2007 Annual Report Download - page 104

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended February 2, 2008, February 3, 2007 and January 28, 2006
(dollar amounts in thousands, except share data)
Additionally, the Company has made certain reclassifications to its consolidated balance sheets to
reflect the assets held for disposal and assets from discontinued operations. As of February 2, 2008, the
balances reclassified to assets held for disposal were as follows:
February 2,
2008
Land .................................................. $ 9,976
Buildings and improvements ................................. 15,805
Total .................................................. 25,781
Less accumulated depreciation and amortization .................. (8,863)
Total Property and Equipment—Net ........................... $16,918
None of the stores closed during fiscal 2007 have been sold as of February 2, 2008 and,
accordingly, all remain in assets held for disposal.
During fiscal 2006, we sold a store that we have leased back and will continue to operate for a one
year period. Due to our significant continuing involvement with this store following the sale, we
reclassified back into continuing operations, for all periods presented, this store’s revenues and costs
that had been previously reclassified into discontinued operations during the third quarter of fiscal
2005, in accordance with SFAS No. 144 and EITF 03-13.
During fiscal 2005, the Company sold assets held for disposal for proceeds of $916, resulting in a
gain of $341, which was recorded in discontinued operations on the consolidated statement of
operations.
NOTE 9—SUPPLEMENTAL GUARANTOR INFORMATION
The Company’s $200,000 aggregate principal amount of 7.50% Senior Subordinated Notes (the
‘‘Notes’’) are fully and unconditionally and joint and severally guaranteed by certain of the Company’s
direct and indirectly wholly-owned subsidiaries—namely, The Pep Boys Manny Moe & Jack of
California, Pep Boys—Manny, Moe & Jack of Delaware, Inc., Pep Boys—Manny, Moe & Jack of
Puerto Rico, Inc. and PBY Corporation, (collectively, the ‘‘Subsidiary Guarantors’’). The Notes are not
guaranteed by the Company’s wholly owned subsidiary, Colchester Insurance Company.
The following condensed consolidating information presents, in separate columns, the condensed
consolidating balance sheets as of February 2, 2008 and February 3, 2007 and the related condensed
consolidating statements of operations and condensed consolidating statements of cash flows for the
fiscal years ended February 2, 2008, February 3, 2007 and January 28, 2006 for (i) the Company (‘‘Pep
Boys’’) on a parent only basis, with its investment in subsidiaries recorded under the equity method,
(ii) the Subsidiary Guarantors on a combined basis including the consolidation by PBY Corporation of
its wholly owned subsidiary, The Pep Boys Manny Moe & Jack of California, (iii) the subsidiary of the
Company that does not guarantee the Notes, and (iv) the Company on a consolidated basis.
58
10-K