Pier 1 2016 Annual Report Download - page 40

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
Item 8. Financial Statements and Supplementary
Data.
Report of Independent Registered Public Accounting Firm
The Board of Directors of Pier 1 Imports, Inc.
We have audited the accompanying consolidated balance sheets of Pier 1 Imports, Inc. as of February 27, 2016 and
February 28, 2015, and the related consolidated statements of operations, comprehensive income, shareholders’ equity and
cash flows for each of the three years in the period ended February 27, 2016. These financial statements are the responsibility of
the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position
of Pier 1 Imports, Inc. at February 27, 2016 and February 28, 2015, and the consolidated results of its operations and its cash
flows for each of the three years in the period ended February 27, 2016, in conformity with U.S. generally accepted accounting
principles.
As discussed in Note 1 to the consolidated financial statements, the Company adopted ASU 2015-17 “Income Taxes (Topic
740): Balance Sheet Classification of Deferred Taxes” and ASU 2015-03 “Interest — Imputation of Interest (Subtopic 835-30):
Simplifying the Presentation of Debt Issuance Costs.”
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),
Pier 1 Imports, Inc.’s internal control over financial reporting as of February 27, 2016, based on criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework) and our report dated April 26, 2016 expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP
Fort Worth, Texas
April 26, 2016
34 PIER 1 IMPORTS, INC. 2016 Form 10-K