Pier 1 2009 Annual Report Download - page 63

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 6—CONDENSED FINANCIAL STATEMENTS
The Company’s 6.375% convertible senior notes due 2036 are fully and unconditionally
guaranteed, on a joint and several basis, by all of the Company’s material domestic consolidated
subsidiaries (the ‘‘Guarantor Subsidiaries’’). 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 February 28, 2009
(in thousands)
Non-
Pier 1 Guarantor Guarantor
Imports, Inc. Subsidiaries Subsidiaries Eliminations Total
Net sales ...................... $ — $1,312,426 $14,674 $ (6,423) $1,320,677
Cost of sales (including buying and
store occupancy costs) ......... — 950,710 13,244 (6,741) 957,213
Selling, general and administrative
(including depreciation and
amortization) ................ 3,788 479,724 515 — 484,027
Operating income (loss) ......... (3,788) (118,008) 915 318 (120,563)
Nonoperating (income) expenses ..... (2,398) 10,881 (417) — 8,066
Income (loss) from continuing
operations before income taxes . . . (1,390) (128,889) 1,332 318 (128,629)
Provision (benefit) for income taxes . . — 637 (13) — 624
Net income (loss) from continuing
operations .................. (1,390) (129,526) 1,345 318 (129,253)
Net income (loss) from subsidiaries . (128,181) 1,345 — 126,836 —
Net income (loss) ................ $(129,571) $ (128,181) $ 1,345 $127,154 $ (129,253)
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