Pep Boys 2010 Annual Report Download - page 133

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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 17—LEGAL MATTERS (Continued)
The Company is also party to various other actions and claims arising in the normal course of
business. The Company believes that amounts accrued for awards or assessments in connection with all
such matters are adequate and that the ultimate resolution of these matters will not have a material
adverse effect on the Company’s financial position. However, there exists a possibility of loss in excess
of the amounts accrued, the amount of which cannot currently be estimated. While the Company does
not believe that the amount of such excess loss could be material to the Company’s financial position,
any such loss could have a material adverse effect on the Company’s results of operations in the
period(s) during which the underlying matters are resolved.
NOTE 18—QUARTERLY FINANCIAL DATA (UNAUDITED)
Earnings
Per Share
from
Earnings Cash
Continuing Earnings Market Price
from Dividends
Operations Per Share Per Share
Total Gross Operating Continuing Per
Revenues Profit Profit Operations Earnings Basic Diluted Basic Diluted Share High Low
Year Ended January 29,
2011
4th quarter ...........$477,389 $124,400 $17,605 $ 8,538 $ 8,365 $0.16 $0.16 $0.16 $0.16 $0.0300 $15.96 $11.37
3rd quarter ........... 496,364 125,856 15,125 5,674 5,718 0.11 0.11 0.11 0.11 0.0300 12.00 8.82
2nd quarter ........... 504,855 134,501 23,842 10,799 10,598 0.21 0.20 0.20 0.20 0.0300 13.26 7.86
1st quarter ........... 510,033 137,595 26,008 12,160 11,950 0.23 0.23 0.23 0.23 0.0300 13.42 8.08
Year Ended January 30,
2010
4th quarter ...........$452,896 $110,047 $ 6,760 $ 2,835 $ 2,268 $0.05 $0.06 $0.04 $0.04 $0.0300 $ 9.29 $ 7.76
3rd quarter ........... 472,643 118,269 10,056 2,357 2,124 0.05 0.04 0.04 0.04 0.0300 10.69 8.40
2nd quarter ........... 488,911 128,190 18,692 7,858 7,735 0.15 0.15 0.15 0.15 0.0300 10.83 5.87
1st quarter ........... 496,488 129,601 21,551 11,063 10,909 0.21 0.21 0.21 0.21 0.0300 8.52 2.76
The sum of individual share amounts may not equal due to rounding.
In the fourth quarter of 2010, the Company recorded a $4.6 million reduction to its reserve for
excess inventory and an income tax benefit of $1.0 million related to the reduction of a valuation
allowance on certain state net operating loss carryforwards and credits.
NOTE 19—SUPPLEMENTAL GUARANTOR INFORMATION
The Company’s Notes are fully and unconditionally and joint and severally guaranteed by certain
of the Company’s direct and indirectly wholly-owned subsidiaries—namely, The Pep Boys Manny
Moe & Jack of California, The Pep Boys—Manny Moe & Jack of Delaware, Inc. (the ‘‘Pep Boys of
Delaware’’), Pep Boys—Manny Moe & Jack of Puerto Rico, Inc. and PBY Corporation (as of
January 29, 2011), (collectively, the ‘‘Subsidiary Guarantors’’). The Notes are not guaranteed by the
Company’s wholly owned subsidiary, Colchester Insurance Company.
The following condensed consolidating information presents, in separate columns, the condensed
consolidating balance sheets as of January 29, 2011 and January 30, 2010 and the related condensed
consolidating statements of operations and condensed consolidating statements of cash flows for fiscal
2010, 2009 and 2008 for (i) the Company (‘‘Pep Boys’’) on a parent only basis, with its investment in
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