Pier 1 2009 Annual Report Download - page 154

(3) As described in Pier 1 Imports’ Form 8-K filed on October 1, 2008, Mr. Walker was paid
$1,666,407 on March 2, 2009 for settlement of the amount owed to him under the
Supplemental Retirement Plan.
Benefits under the plan for each participant are prorated for years of credited service with Pier 1
Imports of less than 20 years. In addition, each participant becomes vested in that benefit based on
years of plan participation under the following schedule:
Vesting
Years of Plan Participation Percentage
Less than 1 .............................................. 0%
1 but less than 2 .......................................... 10%
2 but less than 3 .......................................... 20%
3 but less than 4 .......................................... 30%
4 but less than 5 .......................................... 40%
5 but less than 6 .......................................... 50%
6 but less than 7 .......................................... 60%
7 but less than 8 .......................................... 70%
8 but less than 9 .......................................... 80%
9 but less than 10 ......................................... 90%
10 or more .............................................. 100%
Vesting is accelerated to 100% upon an early retirement, normal retirement, termination of
employment in certain circumstances as a result of a change in control of Pier 1 Imports, or death or
disability of the participant. Messrs. Smith, Jacobs and Turner each have more than 10 years of plan
participation. Mr. Humenesky has 3 years of plan participation.
None of the named executive officers qualifies for normal retirement under the plan, which
requires a participant’s attainment of age 65. A participant qualifies for early retirement if the
participant has at least 10 years of plan participation and retires at or after age 55 and before age 65.
If a participant retires from Pier 1 Imports after age 55 but before age 65, the calculated benefit prior
to adjustment for Social Security benefits is reduced by 5% for each year that retirement precedes age
65. Mr. Smith is eligible for early retirement.
Refer to note #7 to the Pier 1 Imports, Inc. consolidated financial statements in the 2009
Form 10-K for a discussion of the valuation method and material assumptions applied in quantifying
the present value of the current accrued benefit for the plan shown in the Pension Benefits Table
above.
Non-Qualified Deferred Compensation Table for the Fiscal Year Ended February 28, 2009
The following table shows the value as of the fiscal year ended February 28, 2009 of each named
executive officer’s total benefit under each non-qualified deferred compensation plan of Pier 1 Imports
in which the executive participates. Mr. Smith and Ms. Leite did not participate in either plan
described below during fiscal 2009. Pier 1 Imports’ non-qualified deferred compensation plans are:
•Pier 1 Imports Benefit Restoration Plan—The Pier 1 Imports Benefit Restoration Plan (‘‘BRP’’)
was established by Pier 1 Imports in April 1990. The BRP permits select members of
management and highly compensated employees of Pier 1 Imports to defer current
compensation (generally W-2 earnings). Additionally, Pier 1 Imports recognizes the value of the
past and present services of employees participating in the BRP by making matching
contributions to employee deferrals plus paying interest earnings on the deferral and match
amounts. Pier 1 Imports’ matching contribution is (i) 100% of the first one percent of the
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