Pep Boys 2010 Annual Report Download - page 126

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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)
The following table provides a summary of changes in fair value of Level 3 financial assets during
fiscal 2010:
(dollar amounts in thousands) Fair Value
Balance, January 30, 2010 .................................... $1,208
Transfers from other investments .............................. 1,610
Interest income and gains .................................... 131
Administrative fees ........................................ (58)
Benefits paid during the period ................................ (1,641)
Balance, January 29, 2011 .................................... $1,250
DEFERRED COMPENSATION PLAN
The Company maintains a non-qualified deferred compensation plan that allows its officers and
certain other employees to defer up to 20% of their annual salary and 100% of their annual bonus.
Additionally, the first 20% of an officer’s bonus deferred into the Company’s stock is matched by the
Company on a one-for-one basis with Company stock that vests and is expensed over three years. The
shares required to satisfy distributions of voluntary bonus deferrals and the accompanying match in the
Company’s stock are issued from its treasury account.
RABBI TRUST
The Company establishes and maintains a deferred liability for the non-qualified deferred
compensation plan and the Account Plan. The Company plans to fund this liability by remitting the
officers’ deferrals to a Rabbi Trust where these deferrals are invested in variable life insurance policies.
These assets are included in non-current other assets. Accordingly, all gains and losses on these
underlying investments, which are held in the Rabbi Trust to fund the deferred liability, are recognized
in the Company’s Consolidated Statement of Operations. Under these plans, there were liabilities of
$6.2 million at January 29, 2011 and $3.4 million at January 30, 2010, respectively, which are recorded
primarily in other long-term liabilities.
NOTE 14—EQUITY COMPENSATION PLANS
The Company has a stock-based compensation plan originally approved by the stockholders on
May 21, 1990 under which it has previously granted non-qualified stock options and incentive stock
options to key employees and members of its Board of Directors. There are no awards remaining
available for grant under the 1990 Plan. The Company has a stock-based compensation plan originally
approved by the stockholders on June 2, 1999 under which it has previously granted and may continue
to grant non-qualified stock options, incentive stock options and restricted stock units (RSUs) to key
employees and members of its Board of Directors. On June 24, 2009, the stockholders renamed the
1999 Plan to the 2009 Plan, extended its terms to December 31, 2014 and increased the number of
shares issuable thereunder by 1,500,000. As of January 29, 2011, there were 2,493,181 awards
outstanding and 1,818,706 awards available for grant under the 2009 Plan.
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