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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 8—INCOME TAXES (Continued)
Company’s annual effective tax rate. The Company does not anticipate material changes to its
unrecognized tax benefits within the next twelve months.
NOTE 9—STOCKHOLDERS’ EQUITY
On December 12, 2012, the Company’s Board of Directors authorized a program to repurchase up
to $50.0 million of the Company’s common stock to be made from time to time in the open market or
in privately negotiated transactions, with no expiration date. The Company did not repurchase any
shares of Common Stock in fiscal 2014 and repurchased 237,624 shares of Common Stock for
$2.8 million in fiscal 2013. The repurchased shares were placed into the Company’s treasury.
NOTE 10—ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
The following table presents changes in accumulated other comprehensive (loss) income for the
year ended January 31, 2015:
(Loss) Gain on Cash Flow
Hedges
January 31, February 1,
(dollar amounts in thousands) 2015 2014
Beginning balance ................................ $ 379 $(980)
Other comprehensive (loss) income before reclassifications,
net of ($691) tax benefit and $584 tax ................ (1,154) 975
Amounts reclassified from accumulated other comprehensive
(loss) income, net of $230 and $231 tax(a) ............. 384 384
Net current-period other comprehensive (loss) income ..... (770) 1,359
Ending balance .................................. $ (391) $ 379
(a) Reclassified amount increased interest expense.
NOTE 11—STORE CLOSURES AND ASSET IMPAIRMENTS
During fiscal 2014, the Company recorded a $7.5 million impairment charge related to 35 stores,
one of which was classified as held for disposal and 34 of which were classified as held and used as of
January 31, 2015. Of the $7.5 million impairment charge, $2.5 million was charged to merchandise cost
of sales, and $5.0 million was charged to service cost of sales. In fiscal 2013, the Company recorded a
$7.7 million impairment charge related to 47, 4 of which were classified as held for disposal and 43 of
which were classified as held and used as of February 1, 2014. Of the $7.7 million impairment charge,
$2.4 million was charged to merchandise cost of sales, and $5.3 million was charged to service cost of
sales. In fiscal 2012, the Company recorded a $10.6 million impairment charge related to 49 stores
classified as held and used. Of the $10.6 million impairment charge, $5.1 million was charged to
merchandise cost of sales, and $5.5 million was charged to service cost of sales. In all years the
Company used a probability-weighted approach and estimates of expected future cash flows to
determine the fair value of these stores. Discount and growth rate assumptions were derived from
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