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SUPPLEMENTAL GUARANTOR INFORMATION

3 Months Ended

Apr. 28, 2012

NOTE 13—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), (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 April 28, 2012 and January 28, 2012 and the related condensed consolidating statements of operations and comprehensive income for the thirteen weeks ended April 28, 2012 and April 30, 2011 and condensed consolidating statements of cash flows for the thirteen weeks ended April 28, 2012 and April 30, 2011 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, which affected net cash provided by (used in) financing activities for the thirteen weeks ended April 30, 2011.

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)

As of April 28, 2012	Pep Boys		Subsidiary Guarantors		Subsidiary Non- Guarantors		Consolidation/ Elimination			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	27,764	$	61,170	$	10,505	$	—		$	99,439
Accounts receivable, net	10,664		11,878		—		—			22,542
Merchandise inventories	221,428		405,886		—		—			627,314
Prepaid expenses	12,806		14,701		10,921		(12,351		)	26,077
Other current assets	1,803		—		60,235		(4,841		)	57,197
Total current assets	274,465		493,635		81,661		(17,192		)	832,569
Property and equipment—net	246,121		431,278		30,006		(18,496		)	688,909
Investment in subsidiaries	2,188,204		—		—		(2,188,204		)	—
Intercompany receivables	—		1,377,856		75,537		(1,453,393		)	—
Goodwill	2,549		44,368		—		—			46,917
Deferred income taxes	16,586		51,159		—		—			67,745
Other long-term assets	30,480		1,913		—		—			32,393
Total assets	$	2,758,405	$	2,400,209	$	187,204	$	(3,677,285	)	$	1,668,533
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	261,834	$	—	$	—	$	—		$	261,834
Trade payable program liability	100,414		—		—		—			100,414
Accrued expenses	24,543		62,227		154,256		(12,351		)	228,675
Deferred income taxes	25,985		41,483		—		(4,841		)	62,627
Current maturities of long-term debt	1,079		—		—		—			1,079
Total current liabilities	413,855		103,710		154,256		(17,192		)	654,629
Long-term debt less current maturities	293,773		—		—		—			293,773
Other long-term liabilities	29,496		45,895		—		—			75,391
Deferred gain from asset sales	60,258		95,348		—		(18,496		)	137,110
Intercompany liabilities	1,453,393		—		—		(1,453,393		)	—
Total stockholders’ equity	507,630		2,155,256		32,948		(2,188,204		)	507,630
Total liabilities and stockholders’ equity	$	2,758,405	$	2,400,209	$	187,204	$	(3,677,285	)	$	1,668,533

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)

As of January 28, 2012	Pep Boys		Subsidiary Guarantors		Subsidiary Non- Guarantors		Consolidation/ Elimination			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	22,740	$	27,181	$	8,323	$	—		$	58,244
Accounts receivable, net	14,566		11,226		—		—			25,792
Merchandise inventories	214,584		399,552		—		—			614,136
Prepaid expenses	12,945		16,873		14,996		(18,420		)	26,394
Other current assets	606		—		64,214		(4,841		)	59,979
Total current assets	265,441		454,832		87,533		(23,261		)	784,545
Property and equipment—net	243,108		441,645		30,177		(18,591		)	696,339
Investment in subsidiaries	2,176,992		—		—		(2,176,992		)	—
Intercompany receivables	—		1,389,910		82,206		(1,472,116		)	—
Goodwill	2,549		44,368		—		—			46,917
Deferred income taxes	20,468		52,402		—		—			72,870
Other long-term assets	31,068		2,040		—		—			33,108
Total assets	$	2,739,626	$	2,385,197	$	199,916	$	(3, 690,960)		$	1,633,779
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	243,712	$	—	$	—	$	—		$	243,712
Trade payable program liability	85,214		—		—		—			85,214
Accrued expenses	17,887		55,527		166,711		(18,420		)	221,705
Deferred income taxes	29,383		41,666		—		(4,841		)	66,208
Current maturities of long-term debt	1,079		—		—		—			1,079
Total current liabilities	377,275		97,193		166,711		(23,261		)	617,918
Long-term debt less current maturities	294,043		—		—		—			294,043
Other long-term liabilities	30,540		46,676		—		—			77,216
Deferred gain from asset sales	61,323		97,541		—		(18,591		)	140,273
Intercompany liabilities	1,472,116		—		—		(1,472,116		)	—
Total stockholders’ equity	504,329		2,143,787		33,205		(2,176,992		)	504,329
Total liabilities and stockholders’ equity	$	2,739,626	$	2,385,197	$	199,916	$	(3,690,960	)	$	1,633,779

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

(dollars in thousands)

(unaudited)

				Subsidiary			Subsidiary Non-			Consolidation /
Thirteen Weeks Ended April 28, 2012	Pep Boys			Guarantors			Guarantors			Elimination			Consolidated

Merchandise sales	$	136,583		$	275,749		$	—		$	—		$	412,332
Service revenue	38,041			74,231			—			—			112,272
Other revenue	—			—			6,159			(6,159		)	—
Total revenues	174,624			349,980			6,159			(6,159		)	524,604
Costs of merchandise sales	97,710			193,606			—			(460		)	290,856
Costs of service revenue	34,286			71,857			—			(47		)	106,096
Costs of other revenue	—			—			6,572			(6,572		)	—
Total costs of revenues	131,996			265,463			6,572			(7,079		)	396,952
Gross profit from merchandise sales	38,873			82,143			—			460			121,476
Gross profit from service revenue	3,755			2,374			—			47			6,176
Gross profit from other revenue	—			—			(413		)	413			—
Total gross profit	42,628			84,517			(413		)	920			127,652
Selling, general and administrative expenses	38,937			80,447			84			242			119,710
Net loss from dispositions of assets	—			(2		)	—			—			(2		)
Operating profit (loss)	3,691			4,068			(497		)	678			7,940
Non-operating (expense) income	(4,108		)	15,959			678			(12,059		)	470
Interest expense (income)	17,660			759			(522		)	(11,381		)	6,516
(Loss) earnings from continuing operations before income taxes	(18,077		)	19,268			703			—			1,894
Income tax (benefit) expense	(7,244		)	7,722			282			—			760
Equity in earnings of subsidiaries	11,890			—			—			(11,890		)	—
Net earnings from continuing operations	1,057			11,546			421			(11,890		)	1,134
Discontinued operations, net of tax	5			(77		)	—			—			(72		)
Net earnings	$	1,062		$	11,469		$	421		$	(11,890	)	$	1,062

Other comprehensive income
Defined benefit plan adjustment	354			—			—			—			354
Derivative financial instruments adjustment	1,020			—			—			—			1,020
Other comprehensive income	1,374			—			—			—			1,374
Comprehensive income	$	2,436		$	11,469		$	421		$	(11,890	)	$	2,436

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

(dollars in thousands)

(unaudited)

				Subsidiary			Subsidiary Non-			Consolidation /
Thirteen Weeks Ended April 30, 2011	Pep Boys			Guarantors			Guarantors			Elimination			Consolidated

Merchandise sales	$	141,381		$	267,246		$	—		$	—		$	408,627
Service revenue	38,535			66,378			—			—			104,913
Other revenue	—			—			5,734			(5,734		)	—
Total revenues	179,916			333,624			5,734			(5,734		)	513,540
Costs of merchandise sales	99,173			186,563			—			(407		)	285,329
Costs of service revenue	33,088			60,039			—			(38		)	93,089
Costs of other revenue	—			—			5,826			(5,826		)	—
Total costs of revenues	132,261			246,602			5,826			(6,271		)	378,418
Gross profit from merchandise sales	42,208			80,683			—			407			123,298
Gross profit from service revenue	5,447			6,339			—			38			11,824
Gross profit from other revenue	—			—			(92		)	92			—
Total gross profit	47,655			87,022			(92		)	537			135,122
Selling, general and administrative expenses	37,824			71,069			86			(79		)	108,900
Net gain from dispositions of assets	—			89			—			—			89
Operating profit (loss)	9,831			16,042			(178		)	616			26,311
Non-operating (expense) income	(4,275		)	16,069			616			(11,823		)	587
Interest expense (income)	17,325			901			(522		)	(11,207		)	6,497
(Loss) earnings from continuing operations before income taxes	(11,769		)	31,210			960			—			20,401
Income tax (benefit) expense	(4,614		)	12,233			377			—			7,996
Equity in earnings of subsidiaries	19,531			—			—			(19,531		)	—
Net earnings from continuing operations	12,376			18,977			583			(19,531		)	12,405
Discontinued operations, net of tax	(8		)	(29		)	—			—			(37		)
Net earnings	$	12,368		$	18,948		$	583		$	(19,531	)	$	12,368

Other comprehensive income
Defined benefit plan adjustment	220			—			—			—			220
Derivative financial instruments adjustment	515			—			—			—			515
Other comprehensive income	735			—			—			—			735
Comprehensive income	$	13,103		$	18,948		$	583		$	(19,531	)	$	13,103

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)

Thirteen Weeks Ended April 28, 2012	Pep Boys			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidation / Elimination			Consolidated

Net earnings	$	1,062		$	11,469		$	421		$	(11,890	)	$	1,062
Adjustments to Reconcile Net Earnings to Net Cash (Used In) Provided By Continuing Operations	(4,431		)	11,183			171			11,212			18,135
Changes in operating assets and liabilities	22,271			1,049			(4,401		)	—			18,919
Net cash provided by (used in) continuing operations	18,902			23,701			(3,809		)	(678		)	38,116
Net cash used in discontinued operations	(5		)	(101		)	—			—			(106		)
Net Cash (Used in) Provided by Operating Activities	18,897			23,600			(3,809		)	(678		)	38,010

Net Cash Used in Investing Activities	(7,055		)	(4,885		)	—			—			(11,940		)

Net Cash (Used in) Provided by Financing Activities	(6,818		)	15,274			5,991			678			15,125

Net Increase in Cash	5,024			33,989			2,182			—			41,195
Cash and Cash Equivalents at Beginning of Period	22,740			27,181			8,323			—			58,244
Cash and cash equivalents at end of period	$	27,764		$	61,170		$	10,505		$	—		$	99,439

Thirteen Weeks Ended April 30, 2011	Pep Boys			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidation / Elimination			Consolidated

Net earnings	$	12,368		$	18,948		$	583		$	(19,531	)	$	12,368
Adjustments to Reconcile Net Earnings to Net Cash (Used In) Provided By Continuing Operations	(10,555		)	13,169			193			18,915			21,722
Changes in operating assets and liabilities	16,980			(6,587		)	(5,787		)	—			4,606
Net cash provided by (used in) continuing operations	18,793			25,530			(5,011		)	(616		)	38,696
Net cash (used in) discontinued operations	(37		)	(29		)	—			—			(66		)
Net Cash Provided by (Used in) Operating Activities	18,756			25,501			(5,011		)	(616		)	38,630

Net Cash Used in Investing Activities	(14,323		)	(9,359		)	—			—			(23,682		)

Net Cash Provided by (Used in) Financing Activities	16,486			(27,013		)	5,097			616			(4,814		)

Net Increase (Decrease) in Cash	20,919			(10,871		)	86			—			10,134
Cash and Cash Equivalents at Beginning of Period	37,912			42,779			9,549			—			90,240
Cash and cash equivalents at end of period	$	58,831		$	31,908		$	9,635		$	—		$	100,374

- 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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