Pep Boys 2010 Annual Report Download - page 95

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Other
In the second quarter of fiscal 2010, the Company entered into a price stability agreement
(‘‘Agreement’’) that is also designated as a cash flow hedge. This Agreement is intended to hedge the
price risks associated with the market volatility of retail gasoline. This hedge is deemed to be fully
effective and all adjustments in the hedge’s fair value have been recorded to accumulated other
comprehensive loss. The effect of this Agreement on the Company’s condensed consolidated financial
statements is immaterial. This Agreement expired on January 31, 2011.
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