Pep Boys 2014 Annual Report Download - page 56

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended January 31, 2015, February 1, 2014 and February 2, 2013
NOTE 5—DEBT AND FINANCING ARRANGEMENTS (Continued)
contingently liable for $27.0 million and $30.9 million in outstanding standby letters of credit as of
January 31, 2015 and February 1, 2014, respectively.
The Company is also contingently liable for surety bonds in the amount of approximately
$12.8 million and $10.6 million as of January 31, 2015 and February 1, 2014, respectively. The surety
bonds guarantee certain payments (for example utilities, easement repairs, licensing requirements and
customs fees).
The annual maturities of long-term debt, for the next five fiscal years are:
(dollar amounts in thousands) Long-Term Debt
Fiscal Year
2015 ................................................ $ 2,000
2016 ................................................ 19,000
2017 ................................................ 2,000
2018 ................................................ 190,000
2019 ................................................ —
Thereafter ........................................... —
Total ............................................... $213,000
Interest rates that are currently available to the Company for issuance of debt with similar terms
and remaining maturities are used to estimate fair value for debt obligations and are considered a
level 2 measure under the fair value hierarchy. The estimated fair value of long-term debt including
current maturities was $211.0 million and $203.7 million as of January 31, 2015 and February 1, 2014,
respectively.
NOTE 6—LEASE AND OTHER COMMITMENTS
The aggregate minimum rental payments for all leases having initial terms of more than one year
are as follows:
Operating
(dollar amounts in thousands) Leases
Fiscal Year
2015 ................................................... $114,258
2016 ................................................... 106,774
2017 ................................................... 99,370
2018 ................................................... 87,919
2019 ................................................... 78,813
Thereafter ............................................... 259,087
Aggregate minimum lease payments ............................ $746,221
Rental expense incurred for operating leases in fiscal 2014, 2013, and 2012 was $108.2 million,
$102.3 million and $97.9 million, respectively, and are recorded primarily in cost of revenues. The
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