CONSOLIDATED BALANCE SHEETS (USD $) In Thousands	Oct. 29, 2011	Jan. 29, 2011
Current assets:
Cash and cash equivalents	$ 80,716	$ 90,240
Accounts receivable, less allowance for uncollectible accounts of $1,257 and $1,551	23,524	19,540
Merchandise inventories	606,254	564,402
Prepaid expenses	15,571	28,542
Other current assets	47,550	60,812
Total current assets	773,615	763,536
Property and equipment - net	693,779	700,981
Goodwill	46,219	2,549
Deferred income taxes	66,674	66,019
Other long-term assets	30,821	23,587
Total assets	1,611,108	1,556,672
Current liabilities:
Accounts payable	238,599	210,440
Trade payable program liability	68,320	56,287
Accrued expenses	221,976	236,028
Deferred income taxes	58,898	56,335
Current maturities of long-term debt	1,079	1,079
Total current liabilities	588,872	560,169
Long-term debt less current maturities	294,313	295,122
Other long-term liabilities	72,257	70,046
Deferred gain from asset sales	143,424	152,875
Commitments and contingencies
Stockholders' equity:
Common stock, par value $1 per share: authorized 500,000,000 shares; issued 68,557,041 shares	68,557	68,557
Additional paid-in capital	295,813	295,361
Retained earnings	429,935	402,600
Accumulated other comprehensive loss	(14,727)	(17,028)
Treasury stock, at cost - 15,835,096 shares and 15,971,910 shares	(267,336)	(271,030)
Total stockholders' equity	512,242	478,460
Total liabilities and stockholders' equity	$ 1,611,108	$ 1,556,672

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data	Oct. 29, 2011	Jan. 29, 2011
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for uncollectible accounts (in dollars)	$ 1,257	$ 1,551
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, authorized shares	500,000,000	500,000,000
Common stock, issued shares	68,557,041	68,557,041
Treasury stock, shares	15,835,096	15,971,910

CONSOLIDATED STATEMENTS OF OPERATIONS AND CHANGES IN RETAINED EARNINGS (USD $) In Thousands, except Per Share data	3 Months Ended		9 Months Ended
	Oct. 29, 2011	Oct. 30, 2010	Oct. 29, 2011	Oct. 30, 2010
Merchandise sales	$ 414,530	$ 398,368	$ 1,238,424	$ 1,213,736
Service revenue	107,643	97,996	319,884	297,516
Total revenues	522,173	496,364	1,558,308	1,511,252
Costs of merchandise sales	292,397	279,690	865,446	845,848
Costs of service revenue	102,855	90,818	295,607	267,452
Total costs of revenues	395,252	370,508	1,161,053	1,113,300
Gross profit from merchandise sales	122,133	118,678	372,978	367,888
Gross profit from service revenue	4,788	7,178	24,277	30,064
Total gross profit	126,921	125,856	397,255	397,952
Selling, general and administrative expenses	109,549	110,840	331,717	335,580
Net (loss) gain from dispositions of assets	(25)	109	61	2,603
Operating profit	17,347	15,125	65,599	64,975
Non-operating income	627	650	1,783	1,855
Interest expense	6,889	6,630	19,831	19,881
Earnings from continuing operations before income taxes and discontinued operations	11,085	9,145	47,551	46,949
Income tax expense	4,063	3,471	14,232	18,316
Earnings from continuing operations before discontinued operations	7,022	5,674	33,319	28,633
(Loss) income from discontinued operations, net of tax	(11)	44	3	(367)
Net earnings	7,011	5,718	33,322	28,266
Increase (Decrease) in Retained Earnings
Retained earnings, beginning of period	424,923	393,245	402,600	374,836
Cash dividends	(1,586)	(1,581)	(4,757)	(4,741)
Shares issued and other	(413)	(282)	(1,230)	(1,261)
Retained earnings, end of period	$ 429,935	$ 397,100	$ 429,935	$ 397,100
Basic earnings per share:
Earnings from continuing operations (in dollars per share)	$ 0.13	$ 0.11	$ 0.63	$ 0.54
Discontinued operations, net of tax (in dollars per share)				$ (0.01)
Basic earnings per share (in dollars per share)	$ 0.13	$ 0.11	$ 0.63	$ 0.53
Diluted earnings per share:
Earnings from continuing operations (in dollars per share)	$ 0.13	$ 0.11	$ 0.62	$ 0.54
Discontinued operations, net of tax (in dollars per share)				$ (0.01)
Diluted earnings per share (in dollars per share)	$ 0.13	$ 0.11	$ 0.62	$ 0.53
Cash dividends per share (in dollars per share)	$ 0.03	$ 0.03	$ 0.09	$ 0.09

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands	Oct. 29, 2011	Oct. 30, 2010
Cash flows from operating activities:
Net earnings	$ 33,322	$ 28,266
Adjustments to reconcile net earnings to net cash provided by continuing operations:
(Income) loss from discontinued operations, net of tax	(3)	367
Depreciation and amortization	59,779	55,260
Amortization of deferred gain from asset sales	(9,451)	(9,451)
Stock compensation expense	2,539	2,748
Deferred income taxes	8,021	11,795
Net gain from disposition of assets	(61)	(2,603)
Loss from asset impairment	389	970
Other		52
Changes in assets and liabilities, net of the effects of acquisitions:
Decrease in accounts receivable, prepaid expenses and other	27,767	29,382
Increase in merchandise inventories	(34,874)	(9,474)
Increase in accounts payable	19,758	4,864
Decrease in accrued expenses	(18,693)	(17,993)
Decrease in other long-term liabilities	(3,483)	(2,122)
Net cash provided by continuing operations	85,010	92,061
Net cash provided by (used in) discontinued operations	40	(1,263)
Net cash provided by operating activities	85,050	90,798
Cash flows from investing activities:
Capital expenditures	(50,793)	(42,976)
Proceeds from dispositions of assets	89	6,713
Collateral investment	(4,763)	(5,000)
Acquisitions, net of cash acquired	(42,901)	(144)
Other	(837)
Net cash used in continuing operations	(99,205)	(41,407)
Net cash provided by discontinued operations		569
Net cash used in investing activities	(99,205)	(40,838)
Cash flows from financing activities:
Borrowings under line of credit agreements	5,181	20,482
Payments under line of credit agreements	(5,181)	(20,482)
Borrowings on trade payable program liability	97,400	89,913
Payments on trade payable program liability	(85,367)	(66,995)
Payment for finance issuance cost	(2,441)
Debt payments	(809)	(809)
Dividends paid	(4,757)	(4,741)
Other	605	599
Net cash provided by financing activities	4,631	17,967
Net (decrease) increase in cash and cash equivalents	(9,524)	67,927
Cash and cash equivalents at beginning of period	90,240	39,326
Cash and cash equivalents at end of period	80,716	107,253
Supplemental disclosure of cash flow information:
Cash paid for income taxes	1,015	882
Cash paid for interest	14,577	14,412
Non-cash investing activities:
Accrued purchases of property and equipment	$ 1,486	$ 1,280

BASIS OF PRESENTATION

9 Months Ended

Oct. 29, 2011

BASIS OF PRESENTATION

BASIS OF PRESENTATION

NOTE 1—BASIS OF PRESENTATION

The Pep Boys — Manny, Moe & Jack and subsidiaries (the “Company”) consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of the Company’s financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, costs and expenses, as well as the disclosure of contingent assets and liabilities and other related disclosures. The Company bases its estimates on historical experience and on various other assumptions that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of the Company’s assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates, and the Company includes any revisions to its estimates in the results for the period in which the actual amounts become known.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted, as permitted by Rule 10-01 of the Securities and Exchange Commission’s Regulation S-X, “Interim Financial Statements.” It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2011. The results of operations for the thirty-nine weeks ended October 29, 2011 are not necessarily indicative of the operating results for the full fiscal year.

The consolidated financial statements presented herein are unaudited. In the opinion of management, all adjustments necessary to present fairly the financial position, results of operations and cash flows as of October 29, 2011 and for all periods presented have been made.

The Company’s fiscal year ends on the Saturday nearest January 31. Accordingly, references to fiscal years 2011 and 2010 refer to the fiscal year ending January 28, 2012 and the fiscal year ended January 29, 2011, respectively.

The Company operated 729 store locations at October 29, 2011, of which 232 were owned and 497 were leased.

The Company maintains a trade payable program that is funded by various bank participants who have the ability, but not the obligation, to purchase account receivables owed by the Company from its vendors. The Company, in turn, makes the regularly scheduled full vendor payments to the bank participants. In the first quarter of fiscal 2011 as a result of the Company’s review, the Company determined that the gross amount of borrowings and payments on the trade payable program shown on the statement of cash flows under “Cash flows from financing activities” included certain vendors that had not participated in the trade payable program. As such, the Company made an equal and offsetting adjustment to reduce the trade payables borrowings and payments line items within financing activities by $157.0 million for the thirty-nine weeks ended October 30, 2010. The full year impact of this adjustment is to reduce the line items by $225.2 million and $90.3 million for the years ended January 29, 2011 and January 30, 2010, respectively. These adjustments have no net impact on net cash used in financing activities or on any other cash flow line items.

NEW ACCOUNTING STANDARDS

9 Months Ended

Oct. 29, 2011

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS

NOTE 2—NEW ACCOUNTING STANDARDS

In December 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2010-29 “Business Combinations (Topic 805) — Disclosure of Supplementary Pro Forma Information for Business Combinations” (“ASU 2010-29”). This accounting standard update clarifies that SEC registrants presenting comparative financial statements should disclose in their pro forma information revenue and earnings of the combined entity as though the current period business combinations had occurred as of the beginning of the comparable prior annual reporting period only. The update also expands the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. ASU 2010-29 is effective prospectively for material business combinations entered into in fiscal years beginning on or after December 15, 2010 with early adoption permitted. The Company adopted ASU 2010-29 during the first quarter of the current fiscal year.

In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820) — Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU 2011-04”), which is effective for annual reporting periods beginning after December 15, 2011. This guidance amends certain accounting and disclosure requirements related to fair value measurements. The Company is currently evaluating ASU 2011-04 and has not yet determined the impact the adoption will have on the consolidated financial statements.

In June of 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income” (“ASU 2011-05”). ASU 2011-05 was issued to improve the comparability of financial reporting between U.S. GAAP and IFRS, and eliminates previous U.S. GAAP guidance that allowed an entity to present components of other comprehensive income (“OCI”) as part of its statement of changes in shareholders’ equity. With the issuance of ASU 2011-05, companies are now required to report all components of OCI either in a single continuous statement of total comprehensive income, which includes components of both OCI and net income, or in a separate statement appearing consecutively with the statement of income. ASU 2011-05 does not affect current guidance for the accounting of the components of OCI, or which items are included within total comprehensive income, and is effective for periods beginning after December 15, 2011, with early adoption permitted. The application of this guidance affects presentation only and therefore is not expected to have an impact on the Company’s consolidated financial condition, results of operations or cash flows.

In September 2011, the FASB issued ASU 2011-08, “Intangibles — Goodwill and Other (Topic 350) —Testing Goodwill for Impairment” (“ASU 2011-08”). The new guidance provides entities with the option to perform a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before applying the quantitative two-step goodwill impairment test. If an entity concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it would not be required to perform the quantitative two-step goodwill impairment test. Entities also have the option to bypass the assessment of qualitative factors for any reporting unit in any period and proceed directly to performing the first step of the quantitative two-step goodwill impairment test, as was required prior to the issuance of this new guidance. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. The Company is evaluating which method it will use for impairment testing at the end of the current fiscal year.

ACQUISITIONS

9 Months Ended

Oct. 29, 2011

ACQUISITIONS

ACQUISITIONS

NOTE 3—ACQUISITIONS

During the current fiscal year, the Company made three separate acquisitions. The Company acquired the assets related to seven service and tire centers located in the Seattle-Tacoma area, the assets related to seven service and tire centers located in the Houston, Texas area and all outstanding shares of capital stock of Tire Stores Group Holding Corporation which operated an 85-store chain in Florida, Georgia and Alabama under the name Big 10. Collectively, the acquired stores produced approximately $94.7 million in sales annually based on audited and unaudited pre-acquisition historical information. The total purchase price of these stores was approximately $42.6 million in cash and the assumption of certain liabilities. The acquisitions were financed through cash flows provided by operations. The results of operations of these acquired stores are included in the Company’s results from their respective acquisition dates.

The Company has recorded its initial accounting for these acquisitions in accordance with accounting guidance on business combinations. The acquisitions resulted in goodwill related to, among other things, growth opportunities and assembled workforces. A portion of the goodwill is expected to be deductible for tax purposes. The Company has recorded finite-lived intangible assets at their estimated fair value related to trade name, favorable and unfavorable leases.

The Company expensed all costs related to these acquisitions during fiscal 2011. The total costs related to these acquisitions were $1.5 million and are included in the consolidated statement of operations within selling, general and administrative expenses.

The purchase price of the acquisitions have been preliminarily allocated to the net tangible and intangible assets acquired, with the remainder recorded as goodwill on the basis of estimated fair values. We have revised our estimates in the current quarter, which resulted in a decrease in goodwill of $2.4 million from our initial allocation of purchase price. The change related primarily to the elimination of reserves for uncertain tax positions related to federal and state net operating losses which are included within other non-current assets. The preliminary allocation is a follows:

	As of
	Acquisition
(dollar amounts in thousands)	Dates
Current assets	$	11,642
Intangible assets	950
Other non-current assets	9,627
Current liabilities	(13,817		)
Long-term liabilities	(9,458		)
Total net identifiable assets acquired	$	(1,056	)

Total consideration transferred, net of cash acquired	$	42,614
Less: total net identifiable assets acquired	(1,056		)
Goodwill	$	43,670

Intangible assets consist of trade names ($0.6 million) and favorable leases ($0.3 million). Long-term liabilities includes unfavorable leases ($9.1 million). The trade names are being amortized over their estimated useful life of 3 years. The favorable and unfavorable lease intangible assets and liabilities are being amortized to rent expense over their respective lease terms, ranging from 2 to 16 years. In connection with the acquisitions, the Company assumed additional lease obligations totaling $122.0 million over an average of 14 years.

Sales for the fiscal 2011 acquired stores totaled $43.6 million. Net earnings for the acquired stores for the period from acquisition date through October 29, 2011 were break-even, excluding transition related expenses.

The purchase price allocation remains preliminary for some of the acquired stores due to the finalization of certain valuation adjustments. The Company believes that this will be finalized by the fourth quarter of fiscal 2011 and that any adjustments to the purchase price allocation will not be material.

As the acquisitions (including Big 10) were immaterial to the operating results both individually and in aggregate for the thirteen and thirty-nine week periods ended October 29, 2011 and October 30, 2010, pro forma results of operations are not presented.

In the third quarter of 2011, the Company recorded a reduction to the contingent consideration of $0.7 million related to one of the Company’s acquisitions. The reversal of contingent consideration was recorded to selling, general and administrative expenses in the consolidated statements of operations.

MERCHANDISE INVENTORIES

9 Months Ended

Oct. 29, 2011

MERCHANDISE INVENTORIES

MERCHANDISE INVENTORIES

NOTE 4—MERCHANDISE INVENTORIES

Merchandise inventories are valued at the lower of cost or market. Cost is determined by using the last-in, first-out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each fiscal year based on inventory and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected fiscal year-end inventory levels and costs. If the first-in, first-out (“FIFO”) method of costing inventory had been used by the Company, inventory would have been $545.7 million and $486.0 million as of October 29, 2011 and January 29, 2011, respectively.

The Company’s inventory, consisting primarily of auto parts and accessories, is used on vehicles typically having long lives. Because of this, and combined with the Company’s historical experience of returning excess inventory to the Company’s vendors for full credit, the risk of obsolescence is minimal. The Company establishes a reserve for excess inventory for instances where less than full credit will be received for such returns or where the Company anticipates items will be sold at retail prices that are less than recorded costs. The reserve is based on management’s judgment, including estimates and assumptions regarding marketability of products, the market value of inventory to be sold in future periods and on historical experiences where the Company received less than full credit from vendors for product returns. The Company also provides for estimated inventory shrinkage based upon historical levels and the results of its cycle counting program. The Company’s inventory adjustments for these matters were approximately $5.6 million at October 29, 2011 and $6.0 million at January 29, 2011.

PROPERTY AND EQUIPMENT

9 Months Ended

Oct. 29, 2011

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

NOTE 5—PROPERTY AND EQUIPMENT

The Company’s property and equipment as of October 29, 2011 and January 29, 2011 was as follows:

(dollar amounts in thousands)	October 29, 2011			January 29, 2011

Property and equipment
Land	$	204,023		$	204,023
Buildings and improvements	865,251			848,268
Furniture, fixtures and equipment	710,719			685,481
Construction in progress	5,180			8,781
Accumulated depreciation and amortization	(1,091,394		)	(1,045,572		)
Property and equipment — net	$	693,779		$	700,981

WARRANTY RESERVE

9 Months Ended

Oct. 29, 2011

WARRANTY RESERVE

WARRANTY RESERVE

NOTE 6—WARRANTY RESERVE

The Company provides warranties for both its merchandise sales and service labor. Warranties for merchandise are generally covered by the respective vendors, with the Company covering any costs above the vendor’s stipulated allowance. Service labor is warranted in full by the Company for a limited specific time period. The Company establishes its warranty reserves based on historical experiences. These costs are included in either costs of merchandise sales or costs of service revenues in the consolidated statements of operations.

The reserve for warranty cost activity for the thirty-nine weeks ended October 29, 2011 and the fifty-two weeks ended January 29, 2011 is as follows:

(dollar amounts in thousands)	October 29, 2011			January 29, 2011
Beginning balance	$	673		$	694

Additions related to current period sales	9,790			12,261

Warranty costs incurred in current period	(9,790		)	(12,282		)

Ending balance	$	673		$	673

DEBT AND FINANCING ARRANGEMENTS

9 Months Ended

Oct. 29, 2011

DEBT AND FINANCING ARRANGEMENTS

DEBT AND FINANCING ARRANGEMENTS

NOTE 7—DEBT AND FINANCING ARRANGEMENTS

The following are the components of debt and financing arrangements:

(dollar amounts in thousands)	October 29, 2011			January 29, 2011
7.50% Senior Subordinated Notes, due December 2014	$	147,565		$	147,565
Senior Secured Term Loan, due October 2013	147,827			148,636
Revolving Credit Agreement, expiring July 2016	—			—
Long-term debt	295,392			296,201
Current maturities	(1,079		)	(1,079		)
Long-term debt less current maturities	$	294,313		$	295,122

As of October 29, 2011, 126 stores collateralized the Senior Secured Term Loan.

On July 26, 2011, the Company amended and restated its Revolving Credit Agreement. The Company’s ability to borrow under the Revolving Credit Agreement is based on a specific borrowing base consisting of inventory and accounts receivable up to a maximum availability of $300.0 million. The amendment reduced the interest rate applicable to borrowings by 75 basis points to a rate between London Interbank Offered Rate (LIBOR) plus 2.00% to 2.50% and extended the maturity date of the Revolving Credit Agreement to July 26, 2016. The related refinancing fees of $2.4 million are being amortized over the new five year life. As of October 29, 2011, there were no outstanding borrowings under the Revolving Credit Agreement and $30.0 million of availability was utilized to support outstanding letters of credit. Taking this into account and the borrowing base requirements, as of October 29, 2011, there was $210.1 million of availability remaining.

Several of the Company’s debt agreements require compliance with covenants. The most restrictive of these covenants, an earnings before interest, taxes, depreciation and amortization (“EBITDA”) requirement, is triggered if the Company’s availability under its Revolving Credit Agreement drops below $50.0 million. As of October 29, 2011, the Company was in compliance with all financial covenants contained in its debt agreements.

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 issues that are not quoted on an exchange. The estimated fair value of long-term debt including current maturities was $292.4 million and $298.3 million as of October 29, 2011 and January 29, 2011, respectively.

INCOME TAXES

9 Months Ended

Oct. 29, 2011

INCOME TAXES

INCOME TAXES

NOTE 8—INCOME TAXES

The Company recognizes taxes payable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The Company must assess the likelihood that any recorded deferred tax assets will be recovered against future taxable income. To the extent the Company believes it is more likely than not that the asset will not be recoverable, a valuation allowance must be established. All available evidence, both positive and negative, is considered to determine whether based on the weight of that evidence a valuation allowance is needed. To establish this positive evidence, the Company considers future projections of income and various tax planning strategies for generating income sufficient to utilize the deferred tax assets. Due to an organizational restructuring of its subsidiaries and the Company’s improved profitability and projected future income, the Company released $3.6 million (net of federal tax) of valuation allowance relating to state net operating loss carryforwards and credits during the thirty-nine weeks ended October 29, 2011.

For income tax benefits related to uncertain tax positions to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. During the thirteen and thirty-nine weeks ended October 29, 2011, the Company did not have a material change to its uncertain tax position liabilities.

ACCUMULATED OTHER COMPREHENSIVE LOSS

9 Months Ended

Oct. 29, 2011

ACCUMULATED OTHER COMPREHENSIVE LOSS.

ACCUMULATED OTHER COMPREHENSIVE LOSS

NOTE 9—ACCUMULATED OTHER COMPREHENSIVE LOSS

The following are the components of other comprehensive income:

	Thirteen Weeks Ended					Thirty-nine Weeks Ended
(dollar amounts in thousands)	October 29, 2011		October 30, 2010			October 29, 2011		October 30, 2010
Net earnings	$	7,011	$	5,718		$	33,322	$	28,266
Other comprehensive income (loss), net of tax:
Defined benefit plan adjustment	236		264			709		794
Derivative financial instrument adjustment	907		(226		)	1,592		(1,823		)
Comprehensive income	$	8,154	$	5,756		$	35,623	$	27,237

The components of accumulated other comprehensive loss are:

(dollar amounts in thousands)	October 29, 2011			January 29, 2011

Defined benefit plan adjustment, net of tax	$	(5,867	)	$	(6,576	)
Derivative financial instrument adjustment, net of tax	(8,860		)	(10,452		)
Accumulated other comprehensive loss	$	(14,727	)	$	(17,028	)

IMPAIRMENTS AND ASSETS HELD FOR SALE

9 Months Ended

Oct. 29, 2011

IMPAIRMENTS AND ASSETS HELD FOR SALE

IMPAIRMENTS AND ASSETS HELD FOR SALE

NOTE 10—IMPAIRMENTS AND ASSETS HELD FOR SALE

During the second quarter of fiscal 2011 and 2010, the Company recorded a $0.4 million and a $0.8 million impairment charge, respectively, related to stores classified as held and used. The Company used a probability-weighted approach and estimates of expected future cash flows to determine the fair value of the stores. Discount and growth rate assumptions were derived from current economic conditions, management’s expectations and projected trends of current operating results. The fair market value estimate is classified as a Level 3 measure within the fair value hierarchy. Of the $0.4 million impairment charge in fiscal 2011, $0.1 million was charged to costs of merchandise sales, and $0.3 million was charged to costs of service revenues. Of the $0.8 million impairment charge in fiscal 2010, $0.6 million was charged to costs of merchandise sales, and $0.2 million was charged to costs of service revenue.

During the second quarter of fiscal 2010, the Company also recorded a $0.2 million impairment charge related to a store classified as held for disposal. The Company lowered its selling price reflecting declines in the commercial real estate market. The fair market value of the store is classified as a Level 2 measure within the fair value hierarchy. Substantially all of this impairment was charged to costs of merchandise sales.

During the thirteen week period ended October 30, 2010, the Company sold one store classified as held for disposal for net proceeds of $0.6 million and recognized a net gain of $0.2 million. During the thirty-nine week period ended October 30, 2010, the Company sold five stores classified as held for disposal for net proceeds of $3.5 million and recognized a net gain of $0.5 million.

Assets held for sale were $0.4 million as of October 29, 2011 and $0.5 million as of January 29, 2011 and are recorded within other current assets. Subsequent to the end of the third quarter of fiscal 2011, the Company sold the last remaining store classified as an asset held for sale at the property’s carrying value.

EARNINGS PER SHARE

9 Months Ended

Oct. 29, 2011

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 11—EARNINGS PER SHARE

The following table presents the calculation of basic and diluted earnings per share for earnings from continuing operations and net earnings:

		Thirteen Weeks Ended					Thirty-nine Weeks Ended
(in thousands, except per share amounts)		October 29, 2011			October 30, 2010		October 29, 2011		October 30, 2010

(a)	Earnings from continuing operations	$	7,022		$	5,674	$	33,319	$	28,633

	(Loss) income from discontinued operations, net of tax	(11		)	44		3		(367		)

	Net earnings	$	7,011		$	5,718	$	33,322	$	28,266

(b)	Basic average number of common shares outstanding during period	52,998			52,717		52,933		52,637

	Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price	600			447		661		434

(c)	Diluted average number of common shares assumed outstanding during period	53,598			53,164		53,594		53,071

	Basic earnings per share:
	Earnings from continuing operations (a/b)	$	0.13		$	0.11	$	0.63	$	0.54
	Discontinued operations, net of tax	—			—		—		(0.01		)
	Basic earnings per share	$	0.13		$	0.11	$	0.63	$	0.53

	Diluted earnings per share:
	Net earnings from continuing operations (a/c)	$	0.13		$	0.11	$	0.62	$	0.54
	Discontinued operations, net of tax	—			—		—		(0.01		)
	Diluted earnings per share	$	0.13		$	0.11	$	0.62	$	0.53

At October 29, 2011 and October 30, 2010, respectively, there were 2,640,000 and 2,321,000 outstanding options and restricted stock units. Certain stock options were excluded from the calculation of diluted earnings per share because their exercise prices were greater than the average market price of the common shares for the periods then ended and therefore would be anti-dilutive. The total numbers of such shares excluded from the diluted earnings per share calculation are 904,000 and 1,078,000 for the thirty-nine weeks ended October 29, 2011 and October 30, 2010, respectively. The total numbers of such shares excluded from the diluted earnings per share calculation are 1,050,000 and 1,059,000 for the thirteen weeks ended October 29, 2011 and October 30, 2010, respectively.

BENEFIT PLANS

9 Months Ended

Oct. 29, 2011

BENEFIT PLANS

BENEFIT PLANS

NOTE 12—BENEFIT PLANS

The Company has a qualified 401(k) savings plan and a separate 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 also maintains a non-qualified defined contribution Supplemental Executive Retirement Plan (the “Account Plan”) for key employees designated by the Board of Directors. The Company’s contribution to these plans for fiscal 2011 is contingent upon meeting certain performance metrics. The Company has not recorded any contribution expense for these plans in the first nine months of 2011. The Company’s expense related to the savings plans and the Account Plan for the thirteen weeks ended October 30, 2010 was approximately $0.9 million and $0.3 million, respectively, and for the thirty-nine weeks ended October 30, 2010, approximately $2.5 million and $1.0 million, respectively.

The Company also has a frozen defined benefit pension plan (the “Plan”) covering the Company’s full-time employees hired on or before February 1, 1992. The Company’s expense for its pension plan follows:

	Thirteen Weeks Ended						Thirty-nine Weeks Ended
(dollar amounts in thousands)	October 29, 2011			October 30, 2010			October 29, 2011			October 30, 2010

Interest cost	640			640			1,918			1,920
Expected return on plan assets	(686		)	(538		)	(2,058		)	(1,613		)
Amortization of net loss	378			421			1,134			1,264
Net periodic benefit cost	$	332		$	523		$	994		$	1,571

The Plan is subject to minimum funding requirements of the Employee Retirement Income Security Act of 1974 as amended. While the Company has no minimum funding requirement during fiscal 2011, it made a $3.0 million discretionary contribution to the defined benefit pension plan on April 28, 2011.

During the third quarter of fiscal 2011, the Company began the process of terminating the Plan. The termination of the Plan is expected to be completed by the end of fiscal 2012. In order to terminate the Plan, in accordance with Internal Revenue Service and Pension Benefit Guaranty Corporation requirements, the Company is required to fully fund the Plan on a termination basis and will commit to contribute the additional assets necessary to do so. Plan participants will not be adversely affected by the Plan termination, but rather will have their benefits either converted into a lump sum cash payment or an annuity contract placed with an insurance carrier.

EQUITY COMPENSATION PLANS

9 Months Ended

Oct. 29, 2011

EQUITY COMPENSATION PLANS

EQUITY COMPENSATION PLANS

NOTE 13—EQUITY COMPENSATION PLANS

The Company has stock-based compensation plans, under which it grants stock options and restricted stock units to key employees and members of its Board of Directors. The Company generally recognizes compensation expense on a straight-line basis over the vesting period.

The following table summarizes the options under the Company’s plan:

	Number of Shares
Outstanding — January 29, 2011	1,831,802
Granted	265,139
Exercised	(44,144	)
Forfeited	(10,341	)
Expired	(31,683	)
Outstanding — October 29, 2011	2,010,773

In the first nine months of fiscal year 2011, the Company granted approximately 265,000 stock options with a weighted average grant date fair value of $5.38. These options have a seven year term and vest over a three year period with a third vesting on each of the three grant date anniversaries. The compensation expense recorded during the thirteen weeks and thirty-nine weeks ended October 29, 2011, for the options granted was immaterial.

In the first nine months of fiscal year 2010, the Company granted approximately 303,500 stock options with a weighted average grant date fair value of $4.26. These options have a seven year term and vest over a three year period with a third vesting on each of the three grant date anniversaries. The compensation expense recorded during the thirteen and thirty-nine weeks ended October 30, 2010, for the options granted was immaterial.

The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on historical volatilities for a time period similar to that of the expected term blended with market based implied volatility at the time of the grant. The risk-free rate is based on the U.S. treasury yield curve for issues with a remaining term equal to the expected term.

The following are the weighted-average assumptions:

	October 29, 2011		October 30, 2010
Dividend yield	1.0	%	1.4	%
Expected volatility	58.2	%	55.7	%
Risk-free interest rate range:
High	1.9	%	2.0	%
Low	1.6	%	1.7	%
Ranges of expected lives in years	4 - 5		4 - 5

RESTRICTED STOCK UNITS

Performance Based Awards

In the first quarter of fiscal 2011, the Company granted approximately 95,000 restricted stock units that will vest if the employees remain continuously employed through the third anniversary date of the grant and the Company achieves a return on invested capital target for fiscal year 2013. The number of underlying shares that may be issued upon vesting will range from 0% to 150%, depending upon the Company achieving the financial targets in fiscal year 2013. The fair value for these awards was $12.48 per unit at the date of the grant. The compensation expense recorded for these restricted stock units was immaterial during the thirteen weeks and thirty-nine weeks ended October 29, 2011.

In the first quarter of fiscal 2010, the Company granted approximately 105,000 restricted stock units that will vest if the employees remain continuously employed through the third anniversary date of the grant and the Company achieves a return on invested capital target for fiscal year 2012. The number of underlying shares that may be issued upon vesting will range from 0% to 150%, depending upon the Company achieving the financial targets in fiscal year 2012. The fair value for these awards was $10.34 per unit at the date of the grant. The compensation expense recorded for these restricted stock units during the thirteen weeks and thirty-nine weeks ended October 29, 2011 and October 30, 2010, was immaterial.

Market Based Awards

In the first quarter of fiscal 2011, the Company granted approximately 48,000 restricted stock units that will vest if the employees remain continuously employed through the third anniversary date of the grant and will become exercisable if the Company satisfies a total shareholder return target in fiscal 2013. The number of underlying shares that may become exercisable will range from 0% to 175% depending upon whether the market condition is achieved. The Company used a Monte Carlo simulation to estimate a $14.73 per unit grant date fair value. The compensation expense recorded for these restricted stock units during the thirteen weeks and thirty-nine weeks ended October 29, 2011, was immaterial.

In the first quarter of fiscal 2010, the Company granted approximately 52,000 restricted stock units that will vest if the employees remain continuously employed through the third anniversary date of the grant and will become exercisable if the Company satisfies a total shareholder return target in fiscal 2012. The number of underlying shares that may become exercisable will range from 0% to 175% depending upon whether the market condition is achieved. The Company used a Monte Carlo simulation to estimate a $12.99 per unit grant date fair value. The compensation expense recorded for these restricted stock units during the thirteen weeks and thirty-nine weeks ended October 29, 2011 and October 30, 2010, was immaterial.

Other Awards

In the first quarter of fiscal 2011 and 2010, the Company granted approximately 50,000 and 61,000 restricted stock units, respectively, related to officers’ deferred bonus matches under the Company’s non-qualified deferred compensation plan, which vest over a three year period. The fair value of these awards was $13.68 and $12.53, respectively, and the compensation expense recorded for these awards during the thirteen weeks and thirty-nine weeks ended October 29, 2011 and October 30, 2010, was immaterial.

In the second quarter of fiscal 2011, the Company granted approximately 42,000 restricted stock units to its non-employee directors of the board that vested immediately. The fair value was $10.67 per unit and the Company recognized compensation expense of approximately $0.4 million for these restricted stock units.

In the second quarter of fiscal 2010, the Company granted approximately 52,000 restricted stock units to its non-employee directors of the board that vested immediately. The fair value was $9.55 per unit and the Company recognized compensation expense of approximately $0.5 million for these restricted stock units.

The following table summarizes the units under the Company’s plan, assuming maximum vesting of underlying shares for the performance and market based awards described above:

	Number of RSUs
Nonvested — January 29, 2011	432,331
Granted	321,314
Forfeited	(3,051	)
Vested	(121,712	)
Nonvested — October 29, 2011	628,882

EMPLOYEE STOCK PURCHASE PLAN

During the third quarter of fiscal 2011, the Company began an employee stock purchase plan which provides eligible employees the opportunity to purchase shares of the Company’s stock at a stated discount through regular payroll deductions. The aggregate number of shares of common stock that may be issued or transferred under the plan is 2,000,000 shares. All shares purchased by employees under this plan will be issued through treasury stock. The Company’s expense for the discount during the third quarter of fiscal 2011 was immaterial.

FAIR VALUE MEASUREMENTS AND DERIVATIVES

9 Months Ended

Oct. 29, 2011

FAIR VALUE MEASUREMENTS AND DERIVATIVES

FAIR VALUE MEASUREMENTS AND DERIVATIVES

NOTE 14—FAIR VALUE MEASUREMENTS AND DERIVATIVES

The Company’s fair value measurements consist of (a) non-financial assets and liabilities that are recognized or disclosed at fair value in the Company’s financial statements on a recurring basis (at least annually) and (b) all financial assets and liabilities.

Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. There is a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following table provides information by level for assets and liabilities that are measured at fair value, on a recurring basis:

(dollar amounts in thousands)	Fair Value at		Fair Value Measurements Using Inputs Considered as
Description	October 29, 2011		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	80,716	$	80,716	$	—	$	—
Collateral investments (1)	14,400		14,400		—		—

Liabilities:
Other liabilities
Derivative liability (3)	13,963		—		13,963		—

(dollar amounts in thousands)	Fair Value at		Fair Value Measurements Using Inputs Considered as
Description	January 29, 2011		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	90,240	$	90,240	$	—	$	—
Collateral investments (1)	9,638		9,638		—		—

Liabilities:
Current liabilities
Contingent consideration (2)	288		—		—		288
Other liabilities
Derivative liability (3)	16,424		—		16,424		—
Contingent consideration (3)	1,224		—		—		1,224

(1) included in other long-term assets

(2) included in accrued liabilities

(3) included in other long-term liabilities

During fiscal 2010, the Company invested $9.6 million in restricted accounts as collateral for its retained liabilities included within existing insurance programs in lieu of previously outstanding letters of credit. During the thirty-nine weeks of fiscal 2011, the company invested an additional $4.8 million. The collateral investment is included in other long-term assets on the consolidated balance sheet.

The Company has one interest rate swap designated as a cash flow hedge on $145.0 million of the Company’s Senior Secured Term Loan that is due in October 2013. The swap is used to minimize interest rate exposure and overall interest costs by converting the variable component of the total interest rate to a fixed rate of 5.036%. Since February 1, 2008, this swap was deemed to be fully effective and all adjustments in the interest rate swap’s fair value have been recorded to accumulated other comprehensive loss.

The table below shows the effect of the Company’s interest rate swap on the consolidated financial statements for the periods indicated:

(dollar amounts in thousands)	Amount of Gain in Other Comprehensive Income/ (Loss) (Effective Portion)			Earnings Statement Classification	Amount of Loss Recognized in Earnings (Effective Portion) (a)
Thirteen weeks ended October 29, 2011	$	890		Interest expense	$	(1,751	)
Thirteen weeks ended October 30, 2010	$	(256	)	Interest expense	$	(1,721	)
Thirty-nine weeks ended October 29, 2011	$	1,538		Interest expense	$	(5,242	)
Thirty-nine weeks ended October 30, 2010	$	(1,877	)	Interest expense	$	(5,169	)

(a) represents the effective portion of the loss reclassified from accumulated other comprehensive loss

The fair value of the derivative was $14.0 million and $16.4 million payable at October 29, 2011 and January 29, 2011, respectively. Of the $2.4 million decrease in the fair value during the thirty-nine weeks ended October 29, 2011, $1.5 million net of tax was recorded to accumulated other comprehensive loss on the consolidated balance sheet.

Non-financial assets measured at fair value on a non-recurring basis:

Certain assets, such as goodwill and long-lived 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.

LEGAL MATTERS

9 Months Ended

Oct. 29, 2011

LEGAL MATTERS

LEGAL MATTERS

NOTE 15—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 reasonable 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 could 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.

SUPPLEMENTAL GUARANTOR INFORMATION

9 Months Ended

Oct. 29, 2011

SUPPLEMENTAL GUARANTOR INFORMATION

SUPPLEMENTAL GUARANTOR INFORMATION

NOTE 16—SUPPLEMENTAL GUARANTOR INFORMATION

The Company’s Notes are fully and unconditionally and joint and severally guaranteed by certain of the Company’s direct and indirectly wholly-owned subsidiaries—namely, The Pep Boys Manny Moe & Jack of California, The Pep Boys—Manny Moe & Jack of Delaware, Inc. (the “Pep Boys of Delaware”); Pep Boys—Manny Moe & Jack of Puerto Rico, Inc.; Tire Stores Group Holding Corporation (on and after May 5, 2011); Big 10 Tire Stores, LLC (on and after May 5, 2011) and PBY Corporation (at and prior to January 29, 2011), (collectively, the “Subsidiary Guarantors”). The Notes are not guaranteed by the Company’s wholly owned subsidiary, Colchester Insurance Company.

The following consolidating information presents, in separate columns, the condensed consolidating balance sheets as of October 29, 2011 and January 29, 2011 and the related condensed consolidating statements of operations for the thirty-nine weeks ended October 29, 2011 and October 30, 2010 and condensed consolidating statements of cash flows for the thirty-nine weeks ended October 29, 2011 and October 30, 2010 for (i) the Company (“Pep Boys”) on a parent only basis, with its investment in subsidiaries recorded under the equity method, (ii) the Subsidiary Guarantors on a combined basis, (iii) the subsidiary of the Company that does not guarantee the Notes, and (iv) the Company on a consolidated basis. The Company made an immaterial adjustment to the January 29, 2011 amounts reported for cash, intercompany receivables and intercompany liabilities to account for certain intercompany borrowing activity between Pep Boys and a subsidiary guarantor.

On January 29, 2011, The Pep Boys—Manny, Moe & Jack of Pennsylvania made a capital contribution of $264.0 million to Pep Boys of Delaware consisting of intercompany receivables due from the latter. This contribution resulted in an increase in the Pep Boys’ investment in subsidiaries and the Subsidiary Guarantors’ stockholders’ equity. On January 30, 2011, the Company merged PBY Corporation into Pep Boys of Delaware and accordingly, The Pep Boys Manny Moe & Jack of California became the wholly owned subsidiary of Pep Boys of Delaware. This merger did not affect the presentation of the following condensed consolidating information.

On May 5, 2011, The Pep Boys — Manny, Moe & Jack acquired Tire Store Group Holdings Corporation and its subsidiary Big 10 Tire Stores, LLC. As a result of this acquisition, The Pep Boys—Manny, Moe & Jack of Pennsylvania increased its investment in subsidiaries by $9.4 million (see Note 3 — Acquisitions).

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)

As of October 29, 2011	Pep Boys		Subsidiary Guarantors		Subsidiary Non- Guarantors		Consolidation/ Elimination			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	25,536	$	43,136	$	12,044	$	—		$	80,716
Accounts receivable, net	10,073		13,451		—		—			23,524
Merchandise inventories	203,450		402,804		—		—			606,254
Prepaid expenses	5,976		6,868		2,752		(25		)	15,571
Other current assets	915		428		51,060		(4,853		)	47,550
Total current assets	245,950		466,687		65,856		(4,878		)	773,615
Property and equipment—net	240,440		441,672		30,351		(18,684		)	693,779
Investment in subsidiaries	2,167,471		—		—		(2,167,471		)	—
Intercompany receivables	—		1,378,385		59,551		(1,437,936		)	—
Goodwill	2,549		43,670		—		—			46,219
Deferred income taxes	16,395		50,279		—		—			66,674
Other long-term assets	28,837		1,984		—		—			30,821
Total assets	$	2,701,642	$	2,382,677	$	155,758	$	(3,628,969	)	$	1,611,608
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	238,599	$	—	$	—	$	—		$	238,599
Trade payable program liability	68,320		—		—		—			68,320
Accrued expenses	30,586		66,693		124,722		(25		)	221,976
Deferred income taxes	27,447		36,304		—		(4,853		)	58,898
Current maturities of long-term debt	1,079		—		—		—			1,079
Total current liabilities	366,031		102,997		124,722		(4,878		)	588,872
Long-term debt less current maturities	294,313		—		—		—			294,313
Other long-term liabilities	28,749		43,508		—		—			72,257
Deferred gain from asset sales	62,371		99,737		—		(18,684		)	143,424
Intercompany liabilities	1,437,936		—		—		(1,437,936		)	—
Total stockholders’ equity	512,242		2,136,435		31,036		(2,167,471		)	512,242
Total liabilities and stockholders’ equity	$	2,701,642	$	2,382,677	$	155,758	$	(3,628,969	)	$	1,611,108

As of January 29, 2011	Pep Boys		Subsidiary Guarantors		Subsidiary Non- Guarantors		Consolidation/ Elimination			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	37,912	$	42,779	$	9,549	$	—		$	90,240
Accounts receivable, net	8,976		10,564		—		—			19,540
Merchandise inventories	198,062		366,340		—		—			564,402
Prepaid expenses	11,839		17,649		16,202		(17,148		)	28,542
Other current assets	2,260		936		62,655		(5,039		)	60,812
Total current assets	259,049		438,268		88,406		(22,187		)	763,536
Property and equipment—net	236,853		452,230		30,862		(18,964		)	700,981
Investment in subsidiaries	2,093,479		—		—		(2,093,479		)	—
Intercompany receivables	—		1,361,656		79,270		(1,440,926		)	—
Goodwill	2,549		—		—		—			2,549
Deferred income taxes	15,749		50,270		—		—			66,019
Other long-term assets	22,392		1,195		—		—			23,587
Total assets	$	2,630,071	$	2,303,619	$	198,538	$	(3,575,556	)	$	1,556,672
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	210,440	$	—	$	—	$	—		$	210,440
Trade payable program liability	56,287		—		—		—			56,287
Accrued expenses	23,341		62,168		167,667		(17,148		)	236,028
Deferred income taxes	23,024		38,350		—		(5,039		)	56,335
Current maturities of long-term debt	1,079		—		—		—			1,079
Total current liabilities	314,171		100,518		167,667		(22,187		)	560,169
Long-term debt less current maturities	295,122		—		—		—			295,122
Other long-term liabilities	35,870		34,176		—		—			70,046
Deferred gain from asset sales	65,522		106,317		—		(18,964		)	152,875
Intercompany liabilities	1,440,926		—		—		(1,440,926		)	—
Total stockholders’ equity	478,460		2,062,608		30,871		(2,093,479		)	478,460
Total liabilities and stockholders’ equity	$	2,630,071	$	2,303,619	$	198,538	$	(3,575,556	)	$	1,556,672

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(dollars in thousands)

(unaudited)

				Subsidiary			Subsidiary Non-			Consolidation /
Thirteen Weeks Ended October 29, 2011	Pep Boys			Guarantors			Guarantors			Elimination			Consolidated

Merchandise sales	$	135,575		$	278,955		$	—		$	—		$	414,530
Service revenue	36,499			71,144			—			—			107,643
Other revenue	—			—			5,732			(5,732		)	—
Total revenues	172,074			350,099			5,732			(5,732		)	522,173
Costs of merchandise sales	98,397			194,407			—			(407		)	292,397
Costs of service revenue	32,776			70,117			—			(38		)	102,855
Costs of other revenue	—			—			5,836			(5,836		)	—
Total costs of revenues	131,173			264,524			5,836			(6,281		)	395,252
Gross profit from merchandise sales	37,178			84,548			—			407			122,133
Gross profit from service revenue	3,723			1,027			—			38			4,788
Gross profit from other revenue	—			—			(104		)	104			—
Total gross profit	40,901			85,575			(104		)	549			126,921
Selling, general and administrative expenses	37,084			72,452			80			(67		)	109,549
Net gain from dispositions of assets	(2		)	(23		)	—			—			(25		)
Operating profit	3,815			13,100			(184		)	616			17,347
Non-operating (expense) income	(4,104		)	16,331			616			(12,216		)	627
Interest expense (income)	18,032			979			(522		)	(11,600		)	6,889
(Loss) earnings from continuing operations before income taxes	(18,321		)	28,452			954			—			11,085
Income tax (benefit) expense	(5,829		)	9,567			325			—			4,063
Equity in earnings of subsidiaries	19,504			—			—			(19,504		)	—
Net earnings from continuing operations	7,012			18,885			629			(19,504		)	7,022
Discontinued operations, net of tax	(1		)	(10		)	—			—			(11		)
Net earnings	$	7,011		$	18,875		$	629		$	(19,504	)	$	7,011

				Subsidiary			Subsidiary Non-			Consolidation /
Thirteen Weeks Ended October 30, 2010	Pep Boys			Guarantors			Guarantors			Elimination			Consolidated

Merchandise sales	$	135,716		$	262,652		$	—		$	—		$	398,368
Service revenue	35,246			62,750			—			—			97,996
Other revenue	—			—			5,736			(5,736		)	—
Total revenues	170,962			325,402			5,736			(5,736		)	496,364
Costs of merchandise sales	96,266			183,831			—			(407		)	279,690
Costs of service revenue	31,960			58,896			—			(38		)	90,818
Costs of other revenue	—			—			5,067			(5,067		)	—
Total costs of revenues	128,226			242,727			5,067			(5,512		)	370,508
Gross profit from merchandise sales	39,450			78,821			—			407			118,678
Gross profit from service revenue	3,286			3,854			—			38			7,178
Gross profit from other revenue	—			—			669			(669		)	—
Total gross profit	42,736			82,675			669			(224		)	125,856
Selling, general and administrative expenses	37,672			73,920			88			(840		)	110,840
Net gain from dispositions of assets	(105		)	214			—			—			109
Operating profit	4,959			8,969			581			616			15,125
Non-operating (expense) income	(4,120		)	21,206			617			(17,053		)	650
Interest expense (income)	16,824			6,759			(516		)	(16,437		)	6,630
(Loss) earnings from continuing operations before income taxes	(15,985		)	23,416			1,714			—			9,145
Income tax (benefit) expense	(6,173		)	8,979			665			—			3,471
Equity in earnings of subsidiaries	15,517			—			—			(15,517		)	—
Net earnings from continuing operations	5,705			14,437			1,049			(15,517		)	5,674
Discontinued operations, net of tax	13			31			—			—			44
Net earnings	$	5,718		$	14,468		$	1,049		$	(15,517	)	$	5,718

				Subsidiary			Subsidiary Non-			Consolidation /
Thirty-nine Weeks Ended October 29, 2011	Pep Boys			Guarantors			Guarantors			Elimination			Consolidated

Merchandise sales	$	414,837		$	823,587		$	—		$	—		$	1,238,424
Service revenue	112,147			207,737			—			—			319,884
Other revenue	—			—			17,198			(17,198		)	—
Total revenues	526,984			1,031,324			17,198			(17,198		)	1,558,308
Costs of merchandise sales	295,915			570,754			—			(1,223		)	865,446
Costs of service revenue	98,750			196,971			—			(114		)	295,607
Costs of other revenue	—			—			17,492			(17,492		)	—
Total costs of revenues	394,665			767,725			17,492			(18,829		)	1,161,053
Gross profit from merchandise sales	118,922			252,833			—			1,223			372,978
Gross profit from service revenue	13,397			10,766			—			114			24,277
Gross profit from other revenue	—			—			(294		)	294			—
Total gross profit	132,319			263,599			(294		)	1,631			397,255
Selling, general and administrative expenses	113,470			218,219			246			(218		)	331,717
Net gain from dispositions of assets	(2		)	63			—			—			61
Operating profit	18,847			45,443			(540		)	1,849			65,599
Non-operating (expense) income	(12,595		)	48,252			1,850			(35,724		)	1,783
Interest expense (income)	52,891			2,380			(1,565		)	(33,875		)	19,831
(Loss) earnings from continuing operations before income taxes	(46,639		)	91,315			2,875			—			47,551
Income tax (benefit) expense	(13,543		)	26,914			861			—			14,232
Equity in earnings of subsidiaries	66,400			—			—			(66,400		)	—
Net earnings from continuing operations	33,304			64,401			2,014			(66,400		)	33,319
Discontinued operations, net of tax	18			(15		)	—			—			3
Net earnings	$	33,322		$	64,386		$	2,014		$	(66,400	)	$	33,322

				Subsidiary			Subsidiary Non-			Consolidation /
Thirty-nine Weeks Ended October 30, 2010	Pep Boys			Guarantors			Guarantors			Elimination			Consolidated

Merchandise sales	$	421,160		$	792,576		$	—		$	—		$	1,213,736
Service revenue	107,616			189,900			—			—			297,516
Other revenue	—			—			17,208			(17,208		)	—
Total revenues	528,776			982,476			17,208			(17,208		)	1,511,252
Costs of merchandise sales	296,773			550,298			—			(1,223		)	845,848
Costs of service revenue	94,316			173,250			—			(114		)	267,452
Costs of other revenue	—			—			16,628			(16,628		)	—
Total costs of revenues	391,089			723,548			16,628			(17,965		)	1,113,300
Gross profit from merchandise sales	124,387			242,278			—			1,223			367,888
Gross profit from service revenue	13,300			16,650			—			114			30,064
Gross profit from other revenue	—			—			580			(580		)	—
Total gross profit	137,687			258,928			580			757			397,952
Selling, general and administrative expenses	118,983			217,431			258			(1,092		)	335,580
Net gain from dispositions of assets	1,975			628			—			—			2,603
Operating profit	20,679			42,125			322			1,849			64,975
Non-operating (expense) income	(12,533		)	61,727			1,850			(49,189		)	1,855
Interest expense (income)	49,176			19,610			(1,565		)	(47,340		)	19,881
(Loss) earnings from continuing operations before income taxes	(41,030		)	84,242			3,737			—			46,949
Income tax (benefit) expense	(16,029		)	32,884			1,461			—			18,316
Equity in earnings of subsidiaries	53,295			—			—			(53,295		)	—
Net earnings from continuing operations	28,294			51,358			2,276			(53,295		)	28,633
Discontinued operations, net of tax	(28		)	(339		)	—			—			(367		)
Net earnings	$	28,266		$	51,019		$	2,276		$	(53,295	)	$	28,266

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)

Thirty-nine Weeks Ended October 29, 2011	Pep Boys			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidation / Elimination			Consolidated

Net earnings	$	33,322		$	64,386		$	2,014		$	(66,400	)	$	33,322
Adjustments to Reconcile Net Earnings to Net Cash (Used In) Provided By Continuing Operations	(40,399		)	36,365			697			64,550			61,213
Changes in operating assets and liabilities	33,992			(25,431		)	(18,086		)	—			(9,525		)
Net cash provided by (used in) continuing operations	26,915			75,320			(15,375		)	(1,850		)	85,010
Net cash provided by discontinued operations	18			22			—			—			40
Net Cash Provided by (Used in) Operating Activities	26,933			75,342			(15,375		)	(1,850		)	85,050

Net cash used in continuing operations	(31,509		)	(67,696		)	—			—			(99,205		)
Net cash provided by discontinued operations	—			—			—			—			—
Net Cash Used in Investing Activities	(31,509		)	(67,696		)	—			—			(99,205		)

Net Cash (Used in) Provided by Financing Activities	(7,800		)	(7,288		)	17,869			1,850			4,631

Net (Decrease) Increase in Cash	(12,376		)	358			2,494			—			(9,524		)
Cash and Cash Equivalents at Beginning of Period	37,912			42,779			9,549			—			90,240
Cash and cash equivalents at end of period	$	25,536		$	43,137		$	12,043		$	—		$	80,716

Thirty-nine Weeks Ended October 30, 2010	Pep Boys			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidation / Elimination			Consolidated

Net earnings	$	28,266		$	51,019		$	2,276		$	(53,295	)	$	28,266
Adjustments to Reconcile Net Earnings to Net Cash (Used In) Provided By Continuing Operations	(24,436		)	31,651			476			51,447			59,138
Changes in operating assets and liabilities	21,750			(1,148		)	(15,945		)	—			4,657
Net cash provided by (used in) continuing operations	25,580			81,522			(13,193		)	(1,848		)	92,061
Net cash used in discontinued operations	(30		)	(1,233		)	—			—			(1,263		)
Net Cash Provided by (Used in) Operating Activities	25,550			80,289			(13,193		)	(1,848		)	90,798

Net cash used in continuing operations	(23,593		)	(17,814		)	—			—			(41,407		)
Net cash provided by discontinued operations	—			569			—			—			569
Net Cash Used in Investing Activities	(23,593		)	(17,245		)	—			—			(40,838		)

Net Cash Provided by (Used in) Financing Activities	27,971			(31,882		)	20,030			1,848			17,967

Net Increase in Cash	29,928			31,162			6,837			—			67,927
Cash and Cash Equivalents at Beginning of Period	25,844			10,279			3,203			—			39,326
Cash and cash equivalents at end of period	$	55,772		$	41,441		$	10,040		$	—		$	107,253

Document and Entity Information	9 Months Ended
Document and Entity Information	Oct. 29, 2011	Nov. 25, 2011
Document and Entity Information
Entity Registrant Name	PEP BOYS MANNY MOE & JACK
Entity Central Index Key	0000077449
Document Type	10-Q
Document Period End Date	Oct. 29, 2011
Amendment Flag	false
Current Fiscal Year End Date	--01-28
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		52,720,713
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3