Pep Boys 2010 Annual Report Download - page 120

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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 13—BENEFIT PLANS (Continued)
expense for the Account Plan was $1.2 million, $0.8 million and $0.2 million for fiscal 2010, 2009 and
2008, respectively.
The Company has a qualified 401(k) savings plan and a separate savings plan for employees
residing in Puerto Rico, which cover all full-time employees who are at least 21 years of age with one
or more years of service. The Company contributes the lesser of 50% of the first 6% of a participant’s
contributions or 3% of the participant’s compensation under both savings plans. The Company’s savings
plans’ contribution expense was $3.0 million, $3.1 million and $3.3 million in fiscal 2010, 2009 and 2008,
respectively.
The Company also has a defined benefit pension plan covering full-time employees hired on or
before February 1, 1992. As of December 31, 1996, the Company froze the accrued benefits under the
plan and active participants became fully vested. The plan’s trustee will continue to maintain and invest
plan assets and will administer benefits payments. The Company uses a fiscal year end measurement
date for determining benefit obligations and the fair value of plan assets of its plans. The actuarial
computations are made using the ‘‘projected unit credit method.’’ Variances between actual experience
and assumptions for costs and returns on assets are amortized over the remaining service lives of
employees under the plan.
Pension expense follows:
Year Ended
January 29, January 30, January 31,
(dollar amounts in thousands) 2011 2010 2009
Service cost ........................... $ — $ — $ 110
Interest cost ........................... 2,561 2,539 3,346
Expected return on plan assets .............. (2,151) (1,804) (2,450)
Amortization of transitional obligation ........ — — 150
Amortization of prior service cost ........... 14 14 340
Recognized actuarial loss .................. 1,672 1,766 975
Net periodic benefit cost .................. 2,096 2,515 2,471
Settlement charge ....................... — — 6,005
Total pension expense .................... $2,096 $ 2,515 $ 8,476
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