Pier 1 2010 Annual Report Download - page 129

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(3) This column represents the amount of base salary paid to the named executive officer during each fiscal year.
(4) This column represents discretionary bonus amounts earned in fiscal 2010 as described in the Compensation
Discussion and Analysis above.
(5) This column represents the grant date fair value of time-based restricted stock awards granted during the fiscal
year, computed in accordance with FASB ASC Topic 718. The amounts shown exclude the impact of estimated
forfeitures related to service-based vesting conditions. For time-based restricted stock awards, fair value is
calculated using the closing price of Pier 1 Imports’ common stock on the date of grant. 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 officer.
(6) This column represents the grant date fair value of stock options granted during the fiscal year, computed in
accordance with FASB ASC Topic 718. The amounts shown exclude the impact of estimated forfeitures related
to service-based vesting conditions. Refer to note #8 to the Pier 1 Imports, Inc. consolidated financial statements
in the 2010 Form 10-K for additional information on the valuation assumptions used in the calculation of the
option awards grant date fair value 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.
As noted in the discussion of Mr. Smith’s employment agreement in the Compensation Discussion and Analysis,
the threshold level of the fiscal 2009 EBITDA Target for Option 2 granted to Mr. Smith was not achieved;
therefore, none of the first 1,000,000 shares granted in Option 2 vested. The fiscal 2010 EBITDA Target was
met and all of the second 1,000,000 shares granted in Option 2 vested. The table shows the grant date fair value
of the second 1,000,000 options, which was determined in fiscal 2010 when the performance targets related to
the options were set by the board.
(7) This column includes the short-term and long-term incentive amounts earned in fiscal 2010.
(8) 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. Neither Ms. Leite nor Mr. Benkel
participated in a Pier 1 Imports defined benefit plan during the years presented.
The change in pension value was:
Name Fiscal 2010 Fiscal 2009 Fiscal 2008
Alexander W. Smith $764,755 $681,873 $2,518,685
Charles H. Turner $346,637 $654,343 $385,629
Gregory S. Humenesky $103,615 $68,092 $11,799
See the Pension Benefits Table below for additional information.
During fiscal 2009 and 2008, neither Mr. Smith nor Ms. Leite participated in a Pier 1 Imports 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 2010 Fiscal 2009 Fiscal 2008
Alexander W. Smith $4 N/A N/A
Charles H. Turner $644 $364 $369
Michael R. Benkel $0 N/A N/A
Gregory S. Humenesky $468 $273 $235
Sharon M. Leite $0 N/A N/A
37