Pier 1 2009 Annual Report Download - page 145

expense included in the Summary Compensation Table above. These amounts reflect Pier 1 Imports’ accounting expense for
these awards, and do not necessarily correspond to the actual value that will be recognized by the named executive officers.
Assumptions
Expected Risk Free Dividend
Volatility Life Interest Rate Yield Fiscal 2009
Name Grant Date (%) (Years) (%) (%) Expense
Alexander W. Smith ...... 02/19/2007 43.07 5 4.500 0.25 1,399,166
Charles H. Turner ....... 07/01/2005 40.00 5 3.840 2.20 23,618
06/23/2006 49.50 5 5.210 0.50 26,763
04/13/2007 42.40 5 4.687 0.25 49,782
04/11/2008 50.84 5 2.570 0.00 35,063
Gregory S. Humenesky .... 03/03/2005 40.00 5 4.000 2.00 7,857
07/01/2005 40.00 5 3.840 2.20 23,618
06/23/2006 49.50 5 5.210 0.50 26,763
04/13/2007 42.40 5 4.687 0.25 49,782
04/11/2008 50.84 5 2.570 0.00 34,655
Jay R. Jacobs .......... 07/01/2005 40.00 5 3.840 2.20 23,618
06/23/2006 49.50 5 5.210 0.50 29,620
04/13/2007 42.40 5 4.687 0.25 70,868
04/11/2008 50.84 5 2.570 0.00 76,418
Sharon M. Leite ........ 08/06/2007 43.17 5 4.520 0.25 20,150
04/11/2008 50.84 5 2.570 0.00 34,655
David A. Walker ........ 07/01/2005 40.00 5 3.840 2.20 31,605
06/23/2006 49.50 5 5.210 0.50 **
04/13/2007 42.40 5 4.687 0.25 **
04/11/2008 50.84 5 2.570 0.00 121,625
** Grant has already been expensed for Mr. Walker in accordance with retirement eligibility guidelines.
Option 1 granted to Mr. Smith to purchase 1,000,000 shares of Pier 1 Imports’ common stock on February 19, 2007 was
time-based and vested on February 19, 2008. The grant is being expensed over two years at $2.88 per share. The minimum
level of the fiscal 2009 adjusted consolidated EBITDA target for Option 2 was not achieved; therefore, none of the
1,000,000 shares which could have vested were expensed during fiscal 2009.
(5) This column represents the sum of the change in pension value and above market earnings on non-qualified deferred
compensation earnings for each of the named executive officers. During fiscal 2007, Mr. Smith did not participate in a
Pier 1 Imports defined benefit plan and Mr. Humenesky was not a named executive officer. During fiscal 2009, Ms. Leite
did not participate in a Pier 1 Imports defined benefit plan.
The change in pension value was:
Name Fiscal 2009 Fiscal 2008 Fiscal 2007
Alexander W. Smith .............................. $285,125 $3,883,868 N/A
Charles H. Turner ................................ $654,343 $ 385,629 $107,259
Gregory S. Humenesky ............................ $68,092 $ 11,799 N/A
Jay R. Jacobs .................................. $558,703 $ 360,718 $ 8,877
David A. Walker ................................ $407,717 $ 210,351 $173,593
See the Pension Benefits Table below for additional information.
During fiscal 2009, 2008 and 2007, Mr. Smith did not participate in a non-qualified deferred compensation plan. During
fiscal 2007, Mr. Humenesky was not a named executive officer. During fiscal 2009, Ms. Leite did not participate in a
non-qualified deferred compensation plan. The above market earnings on the non-qualified deferred compensation plan(s)
in which the below named executive officers participated were:
Name Fiscal 2009 Fiscal 2008 Fiscal 2007
Charles H. Turner ................................ $ 364 $ 369 $ 518
Gregory S. Humenesky ............................ $ 273 $ 235 N/A
Jay R. Jacobs .................................. $1,179 $2,672 $1,049
David A. Walker ................................ $3,253 $2,542 $ 686
Above market earnings represent the difference between 120% of the long-term applicable Federal Rate at the time the
rate for the plan was selected and the annual interest credited in calendar years 2009, 2008 and 2007 of 7.39%, 7.03% and
7.05%, respectively, by Pier 1 Imports on salary deferred by the named executive officers plus Pier 1 Imports match
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