Pep Boys 2007 Annual Report Download - page 59

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2007, the Company reached a settlement in principle regarding the accrued vacation time claims (which
is scheduled to be considered by the court for final approval on May 5, 2008). The Company continues
to vigorously defend the remaining claims.
The Company is also party to various other actions and claims arising in the normal course of
business.
The Company believes that amounts accrued for awards or assessments in connection with all such
matters, which amounts were increased by $6,250,000 in fiscal 2007, are adequate and that the ultimate
resolution of these matters will not have a material adverse effect on the Company’s financial position.
However, there exists a reasonable possibility of loss in excess of the amounts accrued, the amount of
which cannot currently be estimated. While the Company does not believe that the amount of such
excess loss could be material to the Company’s financial position, any such loss could have a material
adverse effect on the Company’s results of operations in the period(s) during which the underlying
matters are resolved.
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders, through the solicitation of proxies or
otherwise, during the fourth quarter of the fiscal year ended February 2, 2008.
13
10-K