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SUPPLEMENTAL GUARANTOR INFORMATION

9 Months Ended

Oct. 29, 2011

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

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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