Pier 1 2016 Annual Report Download - page 58

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
retainers) received a 25% matching contribution from the Company in the form of director deferred stock units. There were
385,250 shares and 279,540 shares deferred, but not delivered, as of February 27, 2016 and February 28, 2015, respectively.
During fiscal 2016, approximately 105,710 director deferred stock units were granted, no units were delivered and no units were
cancelled. Compensation expense for the director deferred stock awards was $800,000, $826,000 and $821,000 in fiscal
2016, 2015 and 2014, respectively.
Stock purchase plan — Substantially all Company associates and all non-employee directors are eligible to participate in the
Pier 1 Imports, Inc. Stock Purchase Plan under which the Company’s common stock is purchased on behalf of participants at
market prices through regular payroll deductions. Each associate may contribute up to 20% of the eligible portions of
compensation, and non-employee directors may contribute up to 100% of their director compensation. The Company
contributes an amount equal to 25% of the participant’s contributions. Company contributions to the plan were $424,000,
$465,000 and $492,000 in fiscal years 2016, 2015 and 2014, respectively.
Preferred Stock — As of February 27, 2016, the Company’s restated certificate of incorporation authorized 20,000,000 shares
of preferred stock having a par value of $1.00 per share to be issued. No such shares have been issued.
Dividends — The Company paid cash dividends of $23,672,000, $21,627,000 and $21,697,000 in fiscal years 2016, 2015
and 2014, respectively. On April 13, 2016, subsequent to year end, the Company announced a $0.07 per share quarterly cash
dividend on the Company’s outstanding shares of common stock. The $0.07 quarterly cash dividend will be paid on May 11,
2016 to shareholders of record on April 27, 2016.
Shares reserved for future issuances — As of February 27, 2016, the Company had approximately 6,879,497 shares of
common stock reserved for future issuances under the stock plans. This amount includes stock options outstanding, director
deferred stock units and shares available for future grant.
Share repurchase plan — The following table summarizes the Company’s total repurchases of its common stock during fiscal
2016, 2015 and 2014:
Shares Purchased
Date Program Announced Authorized Amount Date Completed Fiscal 2016 Fiscal 2015 Fiscal 2014
Weighted
Average
Cost
Remaining
Available as of
February 27, 2016
Dec. 13, 2012 $100,000,000 Sep. 30, 2013 — — 4,525,805 $22.10 $ —
Oct. 18, 2013 200,000,000 Apr. 10, 2014 — 5,071,812 5,262,452 19.35 —
Apr. 10, 2014 200,000,000 — 7,460,935 5,208,500 — 12.06 47,176,224
In fiscal 2016, the Company had cash outflows of $75,000,000 related to repurchases of its common stock which were all
settled in fiscal 2016. Subsequent to year end, through April 20, 2016, under the board approved share repurchase program
announced on April 10, 2014, the Company utilized a total of $842,000 to repurchase 120,000 shares of the Company’s
common stock at a weighted average price per share of $7.01 and $46,335,000 remained available for further repurchases
under that program.
NOTE 7 – INCOME TAXES
The components of income before taxes for each of the last three fiscal years, by tax jurisdiction, were as follows (in
thousands):
2016 2015 2014
Domestic $54,887 $111,338 $165,658
Foreign 8,278 9,064 8,991
Income before income taxes $63,165 $120,402 $174,649
52 PIER 1 IMPORTS, INC. 2016 Form 10-K