Pep Boys 2009 Annual Report Download - page 114

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended January 30, 2010, January 31, 2009 and February 2, 2008
(dollar amounts in thousands, except share and per share data)
NOTE 6—LEASE AND OTHER COMMITMENTS (Continued)
Assets accounted for under the financing method are summarized as follows:
January 30, January 31,
2010 2009
Land ......................................... $ — $1,859
Buildings ...................................... — 2,258
Equipment ..................................... — 2,349
Accumulated depreciation .......................... — (2,829)
Property and equipment—net ....................... $ — $3,637
The aggregate minimum rental payments for all leases having initial terms of more than one year
are as follows:
Operating
Year Leases
2010 ................................................... $ 81,601
2011 ................................................... 80,488
2012 ................................................... 77,677
2013 ................................................... 73,189
2014 ................................................... 68,140
Thereafter ............................................... 395,190
Aggregate minimum lease payments ............................ $776,285
Rental expenses incurred for operating leases in fiscal 2009, 2008, and 2007 were $75,265, $77,150
and $69,255, respectively.
NOTE 7—ASSET RETIREMENT OBLIGATIONS
The Company records asset retirement obligations as incurred and reasonably estimable, including
obligations for which the timing and/or method of settlement are conditional on a future event that
may or may not be within the control of the Company. The obligation principally represents the
removal of leasehold improvements from our stores upon termination of our store leases. The fair
values of obligations are recorded as liabilities on a discounted basis and are accreted over time for the
change in present value. Costs associated with the liabilities are capitalized and amortized over the
estimated remaining useful life of the asset, generally for periods of 15 years.
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