Pep Boys 2008 Annual Report Download - page 137

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended January 31, 2009, February 2, 2008 and February 3, 2007
(dollar amounts in thousands, except share data)
Equity securities include Pep Boys common stock in the amounts of $200 (0.6% of total plan
assets) and $640 (1.7% of total plan assets) at January 31, 2009 and February 2, 2008, 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:
2009 .................................................... $ 1,675
2010 .................................................... 1,759
2011 .................................................... 1,849
2012 .................................................... 1,982
2013 .................................................... 2,119
2014 – 2018 .............................................. 12,605
DEFINED CONTRIBUTION PLANS
The non-qualified SERP has 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 SERP was $163, $440 and $603 for fiscal years 2008, 2007 and 2006, 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 $3,286; $3,480 and $2,963 in fiscal years 2008, 2007 and 2006,
respectively.
DEFERRED COMPENSATION PLAN
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 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
$2,699 at January 31, 2009 and $20,558 at February 2, 2008, respectively. The decrease in the liability
was due to the payout of the defined benefit portion of the SERP.
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