EX-12 2 exhibit12.htm STATEMENT RE: COMPUTATION OF RATIOS
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES Exhibit 12 - Statement Regarding Computation  
      of Ratios of Earnings to Fixed Charges  
 
(in thousands, except ratios)                   
 
  January 28, January 29, January 31, February 1, February 2,
Fiscal year  2006   2005   2004     2003   2002  
 
     Interest  $   49,040 $     35,965   $   38,255 $   47,237 $   53,709
     Interest factor in rental expense    22,534   20,314   21,269 20,424   21,063
     Capitalized interest    867     659     -   44      1  
 
(a) Fixed charges, as defined  $   72,441   $   56,938   $   59,524   $   67,705   $   74,773  
 
     (Loss) Earnings from continuing operations                     
       before income taxes and cumulative                   
       effect of change in accounting principle  $   (56,326 )

$  

40,645 $   (24,337 ) $   61,267 $   46,321
     Fixed charges    72,441   56,938   59,524 67,705   74,773
     Capitalized interest     (867 )   (659 )   -   (44 )    (1 )
 
(b) Earnings, as defined 

$  

15,248  

$  

96,924   $   35,187   $   128,928   $   121,093  
 
(c) Ratio of earnings to fixed charges (b÷a)     -       1.7x      -    1.9x      1.6x  

The ratio of earnings to fixed charges is completed by dividing earnings by fixed charges. "Earnings" consist of earnings before income taxes plus fixed charges (exclusive of capitalized interest costs) plus one-third of rental expense (which amount is considered representative of the interest factor in rental expense). Earnings, as defined, were not sufficient to cover fixed charges by approximately $57.2 and $24.2 million for fiscal years ended January 28, 2006 and January 31, 2004, respectively.