Pep Boys 2010 Annual Report Download - page 119

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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 12—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 29, January 30, January 31,
(dollar amounts in thousands, except per share amounts) 2011 2010 2009
(a) Earnings (loss) from continuing operations before $37,171 $24,113 $(28,838)
discontinued operations ..........................
Loss from discontinued operations, net of tax benefit of (540) (1,077) (1,591)
$(291), $(580) and $(857) .........................
Net earnings (loss) ............................... $36,631 $23,036 $(30,429)
(b) Basic average number of common shares outstanding during 52,677 52,397 52,136
period .......................................
Common shares assumed issued upon exercise of dilutive 485 270 —
stock options, net of assumed repurchase, at the average
market price ..................................
(c) Diluted average number of common shares assumed 53,162 52,667 52,136
outstanding during period .........................
Basic earnings (loss) per share:
Earnings (loss) from continuing operations (a/b) .......... $ 0.71 $ 0.46 $ (0.55)
Discontinued operations, net of tax ................... (0.01) (0.02) (0.03)
Basic earnings (loss) per share ....................... $ 0.70 $ 0.44 $ (0.58)
Diluted earnings (loss) per share:
Earnings (loss) from continuing operations (a/c) .......... $ 0.70 $ 0.46 $ (0.55)
Discontinued operations, net of tax ................... (0.01) (0.02) (0.03)
Diluted earnings (loss) per share ..................... $ 0.69 $ 0.44 $ (0.58)
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 978,000 and 1,125,000 as of January 29, 2011, and
January 30, 2010, respectively. In fiscal 2008, all outstanding stock options and non-vested restricted
stock units were excluded because they were anti-dilutive.
NOTE 13—BENEFIT PLANS
DEFINED BENEFIT AND CONTRIBUTION PLANS
On December 31, 2008, the Company paid $14.4 million to terminate the defined benefit portion
of its Supplemental Executive Retirement Plan (SERP) and recorded a $6.0 million 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
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