Pep Boys 2009 Annual Report Download - page 123

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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 13—EARNINGS PER SHARE (Continued)
The following schedule presents the calculation of basic and diluted earnings per share for
earnings (loss) from continuing operations:
Year Ended
January 30, January 31, February 2,
2010 2009 2008
(in thousands, except per share amounts)
(a) Earnings (loss) from continuing operations .............. $24,113 $(28,838) $(37,438)
Discontinued operations, net of tax ................... (1,077) (1,591) (3,601)
Net earnings (loss) ............................... $23,036 $(30,429) $(41,039)
(b) Basic average number of common shares outstanding during
period ....................................... 52,397 52,136 52,130
Common shares assumed issued upon exercise of dilutive
stock options, net of assumed repurchase, at the average
market price .................................. 270 — —
(c) Diluted average number of common shares assumed
outstanding during period ........................ 52,667 52,136 52,130
Basic earnings (loss) per share:
Earnings (loss) from continuing operations (a/b) .......... $ 0.46 $ (0.55) $ (0.72)
Discontinued operations, net of tax ................... (0.02) (0.03) (0.07)
Basic earnings (loss) per share ....................... $ 0.44 $ (0.58) $ (0.79)
Diluted earnings (loss) per share:
Earnings (loss) from continuing operations (a/c) .......... $ 0.46 $ (0.55) $ (0.72)
Discontinued operations, net of tax ................... (0.02) (0.03) (0.07)
Diluted earnings (loss) per share ..................... $ 0.44 $ (0.58) $ (0.79)
At January 30, 2010, certain stock options were excluded from the calculations of diluted earnings
per share because their exercise prices were greater than the average market price of the common
shares for the period then ended and therefore would be anti-dilutive. The total number of such shares
excluded from the diluted earnings per share calculation were 1,125,000. All outstanding stock options
and non-vested restricted stock units were excluded from the computation of diluted EPS because they
were anti-dilutive for fiscal 2008 and fiscal 2007.
NOTE 14—BENEFIT PLANS
DEFINED BENEFIT AND CONTRIBUTION PLANS
On December 31, 2008, the Company paid $14,441 to terminate the defined benefit portion of its
Supplemental Executive Retirement Plan (SERP) and recorded a $6,005 settlement charge. The
Company continues to maintain the non-qualified defined contribution portion of the SERP plan
(Account Plan) for key employees designated by the Board of Directors. The Company’s contribution
expense for the Account Plan was $790, $163 and $440 for fiscal 2009, 2008 and 2007, respectively.
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