Exhibit 12
THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
Exhibit 12—Statement Regarding Computation of Ratios of Earnings to Fixed Charges
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| February 3, |
| January 28, |
| January 29, |
| January 31, |
| February 1, |
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| (in thousands, except ratios) |
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Fiscal year |
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Interest |
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| $ | 49,342 |
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| $ | 49,040 |
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| $ | 35,965 |
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| $ | 38,255 |
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| $ | 47,237 |
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Interest factor in rental expense |
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| 19,984 |
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| 22,534 |
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| 20,314 |
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| 21,269 |
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| 20,424 |
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Capitalized interest |
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| 799 |
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| 867 |
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| 659 |
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| — |
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| 44 |
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(a) Fixed charges, as defined |
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| $ | 70,125 |
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| $ | 72,441 |
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| $ | 56,938 |
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| $ | 59,524 |
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| $ | 67,705 |
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(Loss) Earnings from continuing operations before income taxes and cumulative effect of change in accounting principle |
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| $ | (6,297 | ) |
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| $ | (56,368 | ) |
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| $ | 40,981 |
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| $ | (23,961 | ) |
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| $ | 61,267 |
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Fixed charges |
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| 70,125 |
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| 72,441 |
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| 56,938 |
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| 59,524 |
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| 67,705 |
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Capitalized interest |
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| (799 | ) |
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| (867 | ) |
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| (659 | ) |
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| — |
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| (44 | ) |
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(b) Earnings, as defined |
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| $ | 63,029 |
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| $ | 15,206 |
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| $ | 97,260 |
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| $ | 35,563 |
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| $ | 128,928 |
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(c) Ratio of earnings to fixed charges (b÷a) |
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| — |
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| — |
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| 1.7 | x |
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| — |
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| 1.9 | x |
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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 $7.1, $57.2 and $24.0 million for fiscal years ended February 3, 2007, January 28, 2006 and January 31, 2004, respectively.