Pep Boys 2013 Annual Report Download - page 135

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended February 1, 2014, February 2, 2013 and January 28, 2012
NOTE 13—BENEFIT PLANS (Continued)
expense for the Account Plan was $0.8 million, $0.1 million and $0.3 million for fiscal 2013, 2012 and
2011, 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. For fiscal 2012 and
2011, the Company’s contributions were conditional upon the achievement of certain pre-established
financial performance goals which were not met in fiscal 2012 or 2011. Employer contributions for
fiscal 2013 were not conditional. The Company’s savings plans’ contribution expense was $3.5 million in
fiscal 2013.
During the fourth quarter of fiscal 2012, the Company terminated its defined benefit pension plan
and contributed $14.1 million to fully fund the plan on a termination basis. Accordingly, the Company
has no further defined benefit pension expense. The participants’ benefits were converted into a lump
sum cash payment or an annuity contract placed with an insurance carrier. The Company used a fiscal
year end measurement date for determining the benefit obligation and the fair value of Plan assets.
The actuarial computations were made using the ‘‘projected unit credit method.’’ Variances between
actual experience and assumptions for costs and returns on assets were amortized over the remaining
service lives of employees under the Plan.
Pension expense is as follows:
Year Ended
February 2, January 28,
(dollar amounts in thousands) 2013 2012
Service cost .................................... $ — $ —
Interest cost .................................... 2,170 2,558
Expected return on plan assets ...................... (2,658) (2,745)
Amortization of prior service cost .................... 13 14
Recognized actuarial loss ........................... 1,896 1,499
Net Period Pension Cost ........................... 1,421 1,326
Settlement Charge ............................... 17,753 —
Net Period Pension Cost ........................... $19,174 $ 1,326
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