Pep Boys 2013 Annual Report Download - page 146

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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 16—FAIR VALUE MEASUREMENTS (Continued)
value hierarchy. Measurements of assets held and used are discussed in Note 11, ‘‘Store Closures and
Asset Impairments.’’
NOTE 17—LEGAL MATTERS
The Company is party to a consent decree, effective July 15, 2010, with the United States
Environmental Protection Agency (‘‘EPA’’) that, among other things, required the Company to
implement a formal compliance program with respect to certain small gasoline engine merchandise sold
by the Company. In the fourth quarter of fiscal 2013, the EPA alleged, in writing, that the Company
had violated certain inspection, testing and reporting requirements of the Consent Decree and made an
aggregated stipulated penalty demand of $2.3 million as a result thereof. The Company is currently
engaged in settlement negotiations with the EPA with respect thereto. The Company has accrued an
amount that it believes is sufficient to resolve those violations for which it believes it is liable. If the
Company is unable to resolve all of the violations with the EPA through its settlement negotiations, the
Company intends to invoke formal dispute resolution procedures with the EPA under the terms of the
Consent Decree.
The Company is also party to various 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 will 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)
(Loss) /
Earnings Per
(Loss) / Share from (Loss) /
Earnings Continuing Earnings Per Market Price
Operating from Operations Share Per Share
Total Gross (Loss) / Continuing (Loss) /
Revenues Profit Profit Operations Earnings Basic Diluted Basic Diluted High Low
Year Ended
February 1, 2014
4th quarter ...... $495,733 $104,016 $ (6,614) $ (3,267) $ (3,331) $(0.06) $(0.06) $(0.06) $(0.06) $13.86 $11.36
3rd quarter ...... 507,042 122,812 7,641 1,013 964 0.02 0.02 0.02 0.02 13.05 11.01
2nd quarter ...... 527,619 138,708 17,748 5,379 5,368 0.10 0.10 0.10 0.10 12.94 11.14
1st quarter ...... 536,173 121,840 3,521 3,928 3,863 0.07 0.07 0.07 0.07 12.14 10.29
Year Ended
February 2, 2013
4th quarter ...... $530,847 $117,206 $(16,394) $(14,320) $(14,543) $(0.27) $(0.27) $(0.27) $(0.27) $11.16 $ 9.48
3rd quarter ...... 509,608 116,040 3,791 (6,695) (6,759) (0.13) (0.13) (0.13) (0.13) 10.57 8.76
2nd quarter ...... 525,671 130,601 16,315 33,034 33,048 0.62 0.61 0.62 0.61 14.93 8.67
1st quarter ...... 524,604 127,652 7,940 1,134 1,062 0.02 0.02 0.02 0.02 15.46 14.90
The sum of individual share amounts may not equal due to rounding.
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