Pier 1 2007 Annual Report Download - page 129

Download and view the complete annual report

Please find page 129 of the 2007 Pier 1 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 133

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133

with Audit Committees” and, with and without management present, discussed and reviewed the results of the
independent auditors’ examination of the consolidated financial statements.
The committee obtained from the independent auditors a formal written statement describing all
relationships between the auditors and Pier 1 that might affect the auditors’ independence consistent with
Independence Standards Board Standard No. 1, “Independence Discussions with Audit Committees.” The
committee also discussed with the auditors any relationships that may have an impact on their objectivity and
independence and satisfied ourselves that the auditors are independent. The committee also considered whether
the provision of non-audit services by Ernst & Young LLP, Pier 1’s independent auditors for fiscal 2007, to
Pier 1 is compatible with maintaining Ernst & Young LLP’s independence.
Based on the above-mentioned review and discussions with management and the independent auditors,
the committee recommended to the board of directors that Pier 1’s audited consolidated financial statements
be included in Pier 1’s Annual Report on Form 10-K for the fiscal year ended March 3, 2007, for filing with
the Securities and Exchange Commission.
AUDIT COMMITTEE
Terry E. London, Chairman
Michael R. Ferrari
Karen W. Katz
Relationship with Independent Auditors
Pursuant to its charter, the audit committee is directly responsible for the appointment, compensation,
retention and oversight of Pier 1’s independent auditors. The audit committee plans to select auditors for the
2008 fiscal year at an upcoming committee meeting.
The audit committee appointed Ernst & Young LLP as Pier 1’s auditors for fiscal 2007. A representative of
Ernst & Young LLP is expected to be present at the annual meeting of shareholders and will be given the
opportunity to make a statement if he or she so desires and to respond to appropriate questions from shareholders.
Independent Auditor Fees
The following table presents fees incurred for professional services rendered by Ernst & Young LLP, Pier
1’s independent auditors, for fiscal years ended March 3, 2007 and February 25, 2006.
March 3, 2007 February 25, 2006
Audit Fees(1) ........................................ $1,232,248 $1,269,396
Audit-Related Fees(2) .................................. $ 0 $ 49,603
Tax Fees(3) .......................................... $ 228,722 $ 229,468
All Other Fees(4) ..................................... $ 1,624 $ 1,624
Total Fees ........................................... $1,462,594 $1,550,091
(1) Includes fees for services related to the annual audit of the consolidated financial statements, required stat-
utory audits, reviews of Pier 1’s quarterly reports on Form 10-Q and the auditor’s report on Pier 1’s inter-
nal control over financial reporting, as required under Section 404 of the Sarbanes-Oxley Act of 2002.
(2) For the fiscal year ended February 25, 2006, includes fees for services related to employee benefit plan
audit and agreed-upon procedures related to the securitization of Pier 1’s proprietary credit card
receivables.
(3) Includes fees for services related to tax compliance, tax advice and tax planning.
(4) Includes fees for subscription to online research tool.
42