Pep Boys 2010 Annual Report Download - page 108

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended January 29, 2011, January 30, 2010 and January 31, 2009
NOTE 2—BUSINESS COMBINATIONS
On October 31, 2009, the Company acquired substantially all of the assets (other than real
property) and certain liabilities of Florida Tire, Inc. (‘‘Florida Tire’’), a privately held automotive
service and tire business located in the Orlando Florida area consisting of 10 service locations. The
Company agreed to pay up to $4.4 million for Florida Tire including contingent consideration of
$1.7 million. The Company has completed the purchase accounting for the Florida Tire acquisition and
has recorded net assets of $4.4 million, including goodwill of $2.5 million.
NOTE 3—OTHER CURRENT ASSETS
The following are the components of other current assets:
January 29, January 30,
(dollar amounts in thousands) 2011 2010
Reinsurance receivable ............................ $57,532 $61,599
Income taxes receivable ........................... 1,608 3,600
Other ......................................... 1,197 229
Total ......................................... $60,337 $65,428
NOTE 4—ACCRUED EXPENSES
The following are the components of accrued expenses:
January 29, January 30,
(dollar amounts in thousands) 2011 2010
Casualty and medical risk insurance ................... $146,667 $150,006
Accrued compensation and related taxes ............... 31,990 33,832
Sales tax payable ................................ 12,809 11,813
Other ......................................... 44,563 46,765
Total ......................................... $236,029 $242,416
NOTE 5—DEBT AND FINANCING ARRANGEMENTS
The following are the components of debt and financing arrangements:
January 29, January 30,
(dollar amounts in thousands) 2011 2010
7.50% Senior Subordinated Notes, due December 2014 ..... $147,565 $157,565
Senior Secured Term Loan, due October 2013 ........... 148,636 149,715
Revolving Credit Agreement, through January 2014 ....... — —
296,201 307,280
Current maturities ............................... (1,079) (1,079)
Total ......................................... $295,122 $306,201
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