SUPPLEMENTAL GUARANTOR INFORMATION

6 Months Ended

Jul. 28, 2012

SUPPLEMENTAL GUARANTOR INFORMATION

SUPPLEMENTAL GUARANTOR INFORMATION

NOTE 14—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 July 28, 2012 and January 28, 2012 and the related condensed consolidating statements of operations and comprehensive income for the thirteen and twenty-six weeks ended July 28, 2012 and July 30, 2011 and condensed consolidating statements of cash flows for the twenty-six weeks ended July 28, 2012 and July 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.

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)

As of July 28, 2012	Pep Boys		Subsidiary Guarantors		Subsidiary Non- Guarantors		Consolidation/ Elimination			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	92,508	$	47,160	$	11,165	$	—		$	150,833
Accounts receivable, net	14,546		13,416		—		—			27,962
Merchandise inventories	221,294		405,261		—		—			626,555
Prepaid expenses	8,929		12,577		7,102		(7,587		)	21,021
Other current assets	1,776		—		56,148		(4,841		)	53,083
Total current assets	339,053		478,414		74,415		(12,428		)	879,454
Property and equipment—net	240,096		431,087		29,835		(18,399		)	682,619
Investment in subsidiaries	2,204,475		—		—		(2,204,475		)	—
Intercompany receivables	—		1,412,350		68,966		(1,481,316		)	—
Goodwill	2,549		44,368		—		—			46,917
Deferred income taxes	3,083		42,742		—		—			45,825
Other long-term assets	29,868		1,792		—		—			31,660
Total assets	$	2,819,124	$	2,410,753	$	173,216	$	(3,716,618	)	$	1,686,475
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	246,522	$	—	$	—	$	—		$	246,522
Trade payable program liability	115,746		—		—		—			115,746
Accrued expenses	25,211		60,694		140,230		(7,587		)	218,548
Deferred income taxes	26,243		39,829		—		(4,841		)	61,231
Current maturities of long-term debt	1,254		—		—		—			1,254
Total current liabilities	414,976		100,523		140,230		(12,428		)	643,301
Long-term debt less current maturities	293,504		—		—		—			293,504
Other long-term liabilities	26,704		45,586		—		—			72,290
Deferred gain from asset sales	59,215		93,155		—		(18,399		)	133,971
Intercompany liabilities	1,481,316		—		—		(1,481,316		)	—
Total stockholders’ equity	543,409		2,171,489		32,986		(2,204,475		)	543,409
Total liabilities and stockholders’ equity	$	2,819,124	$	2,410,753	$	173,216	$	(3,716,618	)	$	1,686,475

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 July 28, 2012	Pep Boys			Guarantors			Guarantors			Elimination			Consolidated
Merchandise sales	$	135,439		$	277,941		$	—		$	—		$	413,380
Service revenue	37,703			74,588			—			—			112,291
Other revenue	—			—			6,161			(6,161		)	—
Total revenues	173,142			352,529			6,161			(6,161		)	525,671
Costs of merchandise sales	96,843			191,668			—			(460		)	288,051
Costs of service revenue	34,108			72,958			—			(47		)	107,019
Costs of other revenue	—			—			6,142			(6,142		)	—
Total costs of revenues	130,951			264,626			6,142			(6,649		)	395,070
Gross profit from merchandise sales	38,596			86,273			—			460			125,329
Gross profit from service revenue	3,595			1,630			—			47			5,272
Gross profit from other revenue	—			—			19			(19		)	—
Total gross profit	42,191			87,903			19			488			130,601
Selling, general and administrative expenses	36,323			78,061			83			(190		)	114,277
Net loss from dispositions of assets	(8		)	(1		)	—			—			(9		)
Operating profit	5,860			9,841			(64		)	678			16,315
Merger termination fees, net	42,955			—			—			—			42,955
Non-operating income (expense)	(4,059		)	16,911			679			(13,010		)	521
Interest expense (income)	18,129			1,151			(521		)	(12,332		)	6,427
Earnings from continuing operations before income taxes	26,627			25,601			1,136			—			53,364
Income tax expense	10,509			9,401			420			—			20,330
Equity in earnings of subsidiaries	16,949			—			—			(16,949		)	—
Net earnings from continuing operations	33,067			16,200			716			(16,949		)	33,034
Discontinued operations, net of tax	(19		)	33			—			—			14
Net earnings	$	33,048		$	16,233		$	716		$	(16,949	)	$	33,048
Other comprehensive income
Defined benefit plan adjustment	354			—			—			—			354
Derivative financial instruments adjustment	910			—			—			—			910
Other comprehensive income	1,264			—			—			—			1,264
Comprehensive income	$	34,312		$	16,233		$	716		$	(16,949	)	$	34,312

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

(dollars in thousands)

(unaudited)

				Subsidiary			Subsidiary Non-			Consolidation /
Thirteen Weeks Ended July 30, 2011	Pep Boys			Guarantors			Guarantors			Elimination			Consolidated
Merchandise sales	$	137,881		$	277,386		$	—		$	—		$	415,267
Service revenue	37,113			70,214			—			—			107,327
Other revenue	—			—			5,732			(5,732		)	—
Total revenues	174,994			347,600			5,732			(5,732		)	522,594
Costs of merchandise sales	98,345			189,785			—			(409		)	287,721
Costs of service revenue	32,886			66,815			—			(38		)	99,663
Costs of other revenue	—			—			5,830			(5,830		)	—
Total costs of revenues	131,231			256,600			5,830			(6,277		)	387,384
Gross profit from merchandise sales	39,536			87,601			—			409			127,546
Gross profit from service revenue	4,227			3,399			—			38			7,664
Gross profit from other revenue	—			—			(98		)	98			—
Total gross profit	43,763			91,000			(98		)	545			135,210
Selling, general and administrative expenses	38,562			74,698			80			(72		)	113,268
Net gain from dispositions of assets	—			(3		)	—			—			(3		)
Operating profit	5,201			16,299			(178		)	617			21,939
Non-operating (expense) income	(4,216		)	15,852			618			(11,685		)	569
Interest expense (income)	17,534			499			(521		)	(11,068		)	6,444
(Loss) earnings from continuing operations before income taxes	(16,549		)	31,652			961			—			16,064
Income tax (benefit) expense	(3,100		)	5,114			159			—			2,173
Equity in earnings of subsidiaries	27,365			—			—			(27,365		)	—
Net earnings from continuing operations	13,916			26,538			802			(27,365		)	13,891
Discontinued operations, net of tax	27			25			—			—			52
Net earnings	$	13,943		$	26,563		$	802		$	(27,365	)	$	13,943
Other comprehensive income
Defined benefit plan adjustment	253			—			—			—			253
Derivative financial instruments adjustment	170			—			—			—			170
Other comprehensive income	423			—			—			—			423
Comprehensive income	$	14,366		$	26,563		$	802		$	(27,365	)	$	14,366

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

(dollars in thousands)

(unaudited)

				Subsidiary			Subsidiary Non-			Consolidation /
Twenty-six Weeks Ended July 28, 2012	Pep Boys			Guarantors			Guarantors			Elimination			Consolidated
Merchandise sales	$	272,022		$	553,690		$	—		$	—		$	825,712
Service revenue	75,744			148,819			—			—			224,563
Other revenue	—			—			12,320			(12,320		)	—
Total revenues	347,766			702,509			12,320			(12,320		)	1,050,275
Costs of merchandise sales	194,553			385,274			—			(920		)	578,907
Costs of service revenue	68,394			144,815			—			(94		)	213,115
Costs of other revenue	—			—			12,714			(12,714		)	—
Total costs of revenues	262,947			530,089			12,714			(13,728		)	792,022
Gross profit from merchandise sales	77,469			168,416			—			920			246,805
Gross profit from service revenue	7,350			4,004			—			94			11,448
Gross profit from other revenue	—			—			(394		)	394			—
Total gross profit	84,819			172,420			(394		)	1,408			258,253
Selling, general and administrative expenses	75,260			158,508			167			52			233,987
Net loss from dispositions of assets	(8		)	(3		)	—			—			(11		)
Operating profit	9,551			13,909			(561		)	1,356			24,255
Merger termination fees	42,955			—			—			—			42,955
Non-operating income (expense)	(8,167		)	32,870			1,357			(25,069		)	991
Interest expense (income)	35,789			1,910			(1,043		)	(23,713		)	12,943
Earnings from continuing operations before income taxes	8,550			44,869			1,839			—			55,258
Income tax expense	3,265			17,123			702			—			21,090
Equity in earnings of subsidiaries	28,839			—			—			(28,839		)	—
Net earnings from continuing operations	34,124			27,746			1,137			(28,839		)	34,168
Discontinued operations, net of tax	(14		)	(44		)	—			—			(58		)
Net earnings	$	34,110		$	27,702		$	1,137		$	(28,839	)	$	34,110
Other comprehensive income
Defined benefit plan adjustment	708			—			—			—			708
Derivative financial instruments adjustment	1,930			—			—			—			1,930
Other comprehensive income	2,638			—			—			—			2,638
Comprehensive income	$	36,748		$	27,702		$	1,137		$	(28,839	)	$	36,748

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

(dollars in thousands)

(unaudited)

				Subsidiary			Subsidiary Non-			Consolidation /
Twenty-six Weeks Ended July 30, 2011	Pep Boys			Guarantors			Guarantors			Elimination			Consolidated
Merchandise sales	$	279,262		$	544,632		$	—		$	—		$	823,894
Service revenue	75,648			136,592			—			—			212,240
Other revenue	—			—			11,466			(11,466		)	—
Total revenues	354,910			681,224			11,466			(11,466		)	1,036,134
Costs of merchandise sales	197,518			376,348			—			(816		)	573,050
Costs of service revenue	65,974			126,854			—			(76		)	192,752
Costs of other revenue	—			—			11,656			(11,656		)	—
Total costs of revenues	263,492			503,202			11,656			(12,548		)	765,802
Gross profit from merchandise sales	81,744			168,284			—			816			250,844
Gross profit from service revenue	9,674			9,738			—			76			19,488
Gross profit from other revenue	—			—			(190		)	190			—
Total gross profit	91,418			178,022			(190		)	1,082			270,332
Selling, general and administrative expenses	76,386			145,767			166			(151		)	222,168
Net gain from dispositions of assets	—			86			—			—			86
Operating profit	15,032			32,341			(356		)	1,233			48,250
Non-operating (expense) income	(8,491		)	31,921			1,234			(23,508		)	1,156
Interest expense (income)	34,859			1,400			(1,043		)	(22,275		)	12,941
(Loss) earnings from continuing operations before income taxes	(28,318		)	62,862			1,921			—			36,465
Income tax (benefit) expense	(7,714		)	17,347			536			—			10,169
Equity in earnings of subsidiaries	46,896			—			—			(46,896		)	—
Net earnings from continuing operations	26,292			45,515			1,385			(46,896		)	26,296
Discontinued operations, net of tax	19			(4		)	—			—			15
Net earnings	$	26,311		$	45,511		$	1,385		$	(46,896	)	$	26,311
Other comprehensive income
Defined benefit plan adjustment	473			—			—			—			473
Derivative financial instruments adjustment	685			—			—			—			685
Other comprehensive income	1,158			—			—			—			1,158
Comprehensive income	$	27,469		$	45,511		$	1,385		$	(46,896	)	$	27,469

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)

Twenty-six Weeks Ended July 28, 2012	Pep Boys			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidation / Elimination			Consolidated
Net Cash Provided by (Used in) Operating Activities	$	41,640		$	56,208		$	(9,042	)	$	(1,356	)	$	87,450
Investing Activities:
Capital expenditures	(15,124		)	(11,223		)	—			—			(26,347		)
Net Cash (Used in) Investing Activities	(15,124		)	(11,223		)	—			—			(26,347		)
Financing Activities:
Borrowings under line of credit agreements	500			606			—			—			1,106
Payments under line of credit agreements	(325		)	(606		)	—			—			(931		)
Borrowings on trade payable program liability	80,836			—			—			—			80,836
Payments on trade payable program liability	(50,304		)	—			—			—			(50,304		)
Debt Payments	(539		)	—			—			—			(539		)
Dividends paid	—			—			(1,356		)	1,356			—
Intercompany (payments) borrowings	11,766			(25,006		)	13,240			—			—
Proceeds from stock issuance	1,318			—			—			—			1,318
Net Cash Provided by (Used in) Financing Activities	43,252			(25,006		)	11,884			1,356			31,486
Net increase in cash and cash equivalents	69,768			19,979			2,842			—			92,589
Cash and cash equivalents at beginning of period	22,740			27,181			8,323			—			58,244
Cash and cash equivalents at end of period	$	92,508		$	47,160		$	11,165		$	—		$	150,833

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)

Twenty-six Weeks Ended July 30, 2011	Pep Boys			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidation / Elimination			Consolidated
Net Cash Provided by (Used in) Operating Activities	$	13,152		$	49,122		$	(9,807	)	$	(1,233	)	$	51,234
Investing Activities:
Capital expenditures	(15,555		)	(15,081		)	—			—			(30,636		)
Proceeds from dispositions of assets	—			89			—			—			89
Premiums paid on life insurance policies	(795		)	—			—			—			(795		)
Collateral investment	(4,763		)	—			—			—			(4,763		)
Acquisitions, net of cash acquired	(144		)	(42,613		)	—			—			(42,757		)
Net Cash Provided by (Used in) Investing Activities	(21,257		)	(57,605		)	—			—			(78,862		)
Financing Activities:
Borrowings under line of credit agreements	1,771			3,274			—			—			5,045
Payments under line of credit agreements	(1,771		)	(3,274		)	—			—			(5,045		)
Borrowings on trade payable program liability	59,097			—			—			—			59,097
Payments on trade payable program liability	(53,944		)	—			—			—			(53,944		)
Payment for finance issuance cost	(2,441		)	—			—			—			(2,441		)
Debt Payments	(539		)	—			—			—			(539		)
Dividends paid	(3,171		)	—			(1,233		)	1,233			(3,171		)
Intercompany (payments) borrowings	(8,985		)	(2,821		)	11,806			—			—
Proceeds from stock issuance	363			—			—			—			363
Net Cash (Used in) Provided by Financing Activities	(9,620		)	(2,821		)	10,573			1,233			(635		)
Net (decrease) increase in cash and cash equivalents	(17,725		)	(11,304		)	766			—			(28,263		)
Cash and cash equivalents at beginning of period	37,912			42,779			9,549			—			90,240
Cash and cash equivalents at end of period	$	20,187		$	31,475		$	10,315		$	—		$	61,977