Pier 1 2009 Annual Report Download - page 153

Messrs. Turner, Jacobs and Walker were offered, and each elected, a lump-sum payment option of the
actuarial equivalent of his benefit. Effective April 20, 2008, Mr. Humenesky was offered, and he
elected, a lump-sum payment option of the actuarial equivalent of his benefit. For the named executive
officers that participate in the plan (other than Mr. Smith), the annual life annuity amount cannot
exceed $500,000. Mr. Smith’s benefit calculation is not subject to this limitation. For certain participants
the plan also provides that in the event of disability or retirement, those participants and their
dependents have the lifetime right to participate in comparable major medical and hospitalization
insurance coverage as made available generally to Pier 1 Imports employees and their dependents. If
the executive elects such coverage he or she must pay a portion of the total premium. In the event of
termination of employment (for reasons other than cause) prior to retirement eligibility, the participant
and his or her dependents have the right to participate in such comparable major medical and
hospitalization insurance coverage during the 15 years immediately after the date the participant attains
age 65. If the participant elects such coverage he or she must pay the total premium. Termination of
employment in certain circumstances as a result of a change in control may constitute retirement under
the plan.
The following table shows the present value of each named executive officer’s total accumulated
benefit under Pier 1 Imports’ Supplemental Retirement Plan as of the fiscal year ended February 28,
2009.
Number of Years Present Value of Payments
Credited Accumulated During Last
Service(1) Benefit Fiscal Year
Name (#) ($) ($)
Alexander W. Smith ............... 9.67 $4,088,276(2) $0
Charles H. Turner ................. 17 $2,510,223 $0
Gregory S. Humenesky ............. 5 $ 79,891 $0
Jay R. Jacobs .................... 31 $2,997,808 $0
Sharon M. Leite .................. N/A N/A N/A
David A. Walker .................. 39 $1,666,407 $0(3)
(Employment ended August 15, 2008)
(1) With the exception of Mr. Smith, the number of years of credited service for plan
purposes equals the years of credited vesting service as determined by Pier 1 Imports’
401(k) plan for the participant, regardless of whether the participant is actually
participating in the 401(k) plan. In all cases except Mr. Smith, the years of credited
service shown equals the named executive officer’s years of employment with Pier 1
Imports. Pursuant to his employment agreement, Mr. Smith was entitled to participate in
the Supplemental Retirement Plan so as to achieve the same level of benefit as his
accrued benefit under the supplemental executive retirement plan of his former employer.
Therefore, in fiscal 2008 (as shown in Pier 1 Imports’ Form 8-K filed on November 15,
2007) Mr. Smith was credited with 10 years of plan participation upon enrollment in the
plan and 6.67 years of credited service as of his employment date with Pier 1 Imports.
The additional 6.67 years of credited service accounts for $3,104,410 of his total present
value of accrued benefits of $4,088,276. In accordance with Pier 1 Imports’ 401(k) plan,
and as of the end of fiscal 2009, Mr. Smith has achieved three additional years of
credited service based upon his employment date.
(2) Includes the present value of medical insurance premiums payable to Mr. Smith in the
event of early retirement.
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