Pep Boys 2010 Annual Report Download - page 112

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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 7—ASSET RETIREMENT OBLIGATIONS (Continued)
the removal of leasehold improvements from stores upon termination of store leases. The obligations
are recorded as liabilities at fair value using discounted cash flows and are accreted over the lease
term. Costs associated with the obligations are capitalized and amortized over the estimated remaining
useful life of the asset.
The Company has recorded a liability pertaining to the asset retirement obligation in accrued
expenses and other long-term liabilities on its consolidated balance sheet. Changes in assumptions
reflect favorable experience with the rate of occurrence of obligations and expected settlement dates.
The liability for asset retirement obligations activity from January 31, 2009 through January 29, 2011 is
as follows:
(dollar amounts in thousands)
Asset retirement obligation at January 31, 2009 ..................... $7,130
Change in assumptions ...................................... (466)
Settlements ............................................... (154)
Accretion expense .......................................... 214
Asset retirement obligation at January 30, 2010 ..................... 6,724
Change in assumptions ...................................... (1,192)
Settlements ............................................... (120)
Accretion expense .......................................... 194
Asset retirement obligation at January 29, 2011 ..................... $5,606
NOTE 8—INCOME TAXES
The provision (benefit) for income taxes includes the following:
Year Ended
January 29, January 30, January 31,
(dollar amounts in thousands) 2011 2010 2009
Current:
Federal ............................. $ — $ 398 $ (464)
State ............................... 491 (511) 1,276
Foreign ............................. 2,210 149 433
Deferred:
Federal(1) ............................ 20,309 13,820 (8,717)
State ............................... (1,818) 42 754
Foreign ............................. 81 (395) 579
Total income tax expense/(benefit) from
continuing operations(a) ................. $21,273 $13,503 $(6,139)
(1) Excludes tax benefit recorded to discontinued operations of $0.3 million, $0.6 million and
$0.9 million in fiscal 2010, 2009 and 2008, respectively.
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