Pier 1 2007 Annual Report Download - page 57

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NOTE 9 — CONDENSED FINANCIAL STATEMENTS
The Company’s 6.375% convertible senior notes are fully and unconditionally guaranteed, on a joint and
several basis, by all of the Company’s material domestic consolidated subsidiaries (the “Guarantor Subsidiar-
ies”). The subsidiaries that do not guarantee such notes are comprised of the Company’s foreign subsidiaries
and certain other insignificant domestic consolidated subsidiaries (the “Non-Guarantor Subsidiaries”). Each of
the Guarantor Subsidiaries is wholly owned. The Company registered these Notes with the Securities and
Exchange Commission in June 2006; therefore, in lieu of providing separate audited financial statements for
the Guarantor Subsidiaries, condensed consolidating financial information is presented below.
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
Year Ended March 3, 2007
(In thousands)
Pier 1
Imports, Inc.
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries Eliminations Total
Net sales . .................... $ — $1,615,951 $42,780 $ (35,515) $1,623,216
Cost of sales (including buying
and store occupancy costs) .... — 1,145,765 39,114 (35,622) 1,149,257
Selling, general and administrative
(including depreciation and
amortization) .............. 1,585 697,075 1,529 — 700,189
Operating income (loss) ........ (1,585) (226,889) 2,137 107 (226,230)
Nonoperating (income) expenses.... (3,660) 6,251 (698) — 1,893
Income (loss) from continuing
operations before income
taxes .................... 2,075 (233,140) 2,835 107 (228,123)
Provision (benefit) for income
taxes . . .................... — (1,101) 216 — (885)
Net income (loss) from continuing
operations ................. 2,075 (232,039) 2,619 107 (227,238)
Net income (loss) from
subsidiaries ................ (229,827) 2,212 — 227,615 —
Discontinued operations:
Loss from discontinued
operations ................. — — (638) — (638)
Benefit for income taxes ........ — — (231) — (231)
Net loss from discontinued
operations ............... — — (407) — (407)
Net income (loss) ............... $(227,752) $ (229,827) $ 2,212 $227,722 $ (227,645)
55
Pier 1 Imports, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)