Pep Boys 2014 Annual Report Download - page 73

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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 17—FAIR VALUE MEASUREMENTS (Continued)
Fair Value Measurements
Fair Value at Using Inputs Considered as
(dollar amounts in thousands) February 1,
Description 2014 Level 1 Level 2 Level 3
Assets:
Cash and cash equivalents ............ $33,431 $33,431 $ — $—
Collateral investments(a) .............. 21,611 21,611 ——
Deferred compensation assets(a) ........ 4,242 — 4,242 —
Other assets
Derivative asset(a) .................. 606 — 606 —
(a) included in other long-term assets
(b) included in other long-term liabilities
The following represents the impact of fair value accounting for the Company’s derivative liability
on its consolidated financial statements:
Amount of Gain
(Loss) in Other Amount of Loss
Comprehensive Recognized in
Income Earnings Statement Earnings
(Effective Portion) Classification (Effective Portion)
(dollar amounts in thousands)
Fiscal 2014 ............... $(770) Interest expense $613
Fiscal 2013 ............... 1,359 Interest expense 614
Non-financial assets measured at fair value on a non-recurring basis:
Certain assets are measured at fair value on a non-recurring basis, that is, the assets are subject to
fair value adjustments in certain circumstances such as when there is evidence of impairment. These
measures of fair value, and related inputs, are considered level 2 or level 3 measures under the fair
value hierarchy. Measurements of assets held and used are discussed in Note 11, ‘‘Store Closures and
Asset Impairments.’’
NOTE 18—LEGAL MATTERS
The Company is 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.
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