Pep Boys 2010 Annual Report Download - page 131

Download and view the complete annual report

Please find page 131 of the 2010 Pep Boys annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

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 16—FAIR VALUE MEASUREMENTS (Continued)
Contingent consideration:
The Company has recorded contingent consideration as a result of the acquisition of Florida Tire.
The consideration may be paid to the seller on each six month anniversary of the closing date until the
deferred purchase price is paid in full, subject to acceleration or cancellation clauses. The calculation of
the contingent consideration is based on a weighted average probability scenario that includes
management’s assumptions on expected future cash flows. As a result, the Company has determined
that contingent considerations are classified as a Level 3 measure within the fair value hierarchy.
The following table provides information by level for assets and liabilities that are measured at fair
value, on a recurring basis.
Fair Value Measurements
Fair Value at Using Inputs Considered as
(dollar amounts in thousands) January 29,
Description 2011 Level 1 Level 2 Level 3
Assets:
Cash and cash equivalents ........................ $90,240 $90,240 $ — $ —
Collateral investments(1) .......................... 9,638 9,638 — —
Liabilities:
Current liabilities
Contingent consideration(2) ....................... 288 — — 288
Other liabilities
Derivative liability(3) ............................ 16,424 — 16,424
Contingent consideration(3) ....................... 1,224 — — 1,224
(1) included in other long-term assets
(2) included in accrued liabilities
(3) included in other long-term liabilities
Fair Value Measurements
Fair Value at Using Inputs Considered as
January 30,
Description 2010 Level 1 Level 2 Level 3
Assets:
Cash and cash equivalents ........................ $39,326 $39,326 $ — $ —
Liabilities:
Other long-term liabilities
Derivative liability(1) ............................ 16,401 — 16,401 —
Contingent consideration ......................... 1,660 — — 1,660
(1) included in other long-term assets
73