Pep Boys 2007 Annual Report Download - page 116

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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)
Equity securities include Pep Boys common stock in the amounts of $640 (1.7% of total plan
assets) and $817 (2.2% of total plan assets) at February 2, 2008 and December 31, 2006, 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:
2008 .................................................... $ 4,404
2009 .................................................... 2,079
2010 .................................................... 2,213
2011 .................................................... 3,145
2012 .................................................... 2,520
2013 – 2017 .............................................. 17,518
DEFINED CONTRIBUTION PLANS
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 $440, $603 and $560 for fiscal years 2007, 2006 and 2005,
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 $3,480, $2,963 and $3,126 in fiscal 2007, 2006 and 2005,
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
$20,558 at February 2, 2008 and $20,761 at February 3, 2007, respectively.
70
10-K