Pier 1 2010 Annual Report Download - page 135

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forfeiture restrictions lapsed on 3,740 shares with a market price of $1.86 as of that date. On April 11, 2008 and
August 6, 2007, Ms. Leite was granted 15,000 shares and 6,000 shares, respectively, of restricted stock that vest
33%, 33% and 34% on each anniversary of the grant date provided that the participant is employed at the vesting
date. On April 11, 2009 the forfeiture restrictions lapsed on 4,950 shares with a market price of $0.85 as of that
date. On August 6, 2009, the forfeiture restrictions lapsed on 1,980 shares with a market price of $2.35 as of that
date.
Pension Benefits Table for the Fiscal Year Ended February 27, 2010
Pier 1 Imports’ named executive officers other than Mr. Benkel and Ms. Leite participate in a plan which was
adopted by Pier 1 Imports in 1995 and is known as the Supplemental Retirement Plan. The plan provides that upon
death, disability, retirement, or termination of employment (including termination of employment in certain
circumstances as a result of a change in control) for reasons other than cause (as defined in the plan) each
participant will receive a life annuity based on an annual benefit which generally equals 60% of the participant’s
highest three-year average of annual salary and bonus offset by Social Security retirement benefits. Messrs. Smith,
Turner and Humenesky are each entitled to a lump-sum payment of the actuarial equivalent of their respective
benefit. For the named executive officers that participate in the plan other than Mr. Smith, the annual life annuity
amount cannot exceed $500,000. Mr. Smith’s benefit calculation is not subject to this limitation. For certain
participants the plan also provides that in the event of disability or retirement, those participants and their
dependents have the lifetime right to participate in comparable major medical and hospitalization insurance
coverage as made available generally to Pier 1 Imports employees and their dependents. If the executive elects such
coverage he or she must pay a portion of the total premium. In the event of termination of employment for reasons
other than cause prior to retirement eligibility, the participant and his or her dependents have the right to participate
in such comparable major medical and hospitalization insurance coverage during the 15 years immediately after the
date the participant attains age 65. If the participant elects such coverage he or she must pay the total premium
associated with the coverage. Termination of employment in certain circumstances following a change in control
may constitute retirement under the plan.
The following table shows the present value of each named executive officer’s total accumulated benefit under
Pier 1 Imports’ Supplemental Retirement Plan as of the fiscal year ended February 27, 2010.
Name
Number of Years
Credited Service(1)
(#)
Present Value of
Accumulated Benefit
($)
Payments During Last
Fiscal Year
($)
Alexander W. Smith 10.67 $3,965,313(2) $0
Charles H. Turner 18 $2,856,860 $0
Gregory S. Humenesky 6 $ 183,506 $0
(1) With the exception of Mr. Smith, the number of years of credited service for plan purposes equals the
years of credited vesting service as determined by Pier 1 Imports’ 401(k) plan for the participant,
regardless of whether the participant is actually participating in the 401(k) plan. In all cases except
Mr. Smith, the years of credited service shown equals the named executive officer’s years of
employment with Pier 1 Imports. Pursuant to his initial employment agreement, Mr. Smith was
entitled to participate in the Supplemental Retirement Plan so as to achieve the same level of benefit
as his accrued benefit under the supplemental executive retirement plan of his former employer.
Therefore, in fiscal 2008 Mr. Smith was credited with 10 years of plan participation upon enrollment
in the plan and 6.67 years of credited service as of his employment date with Pier 1 Imports. The
additional 6.67 years of credited service accounts for $2,260,773 of his total present value of accrued
benefits of $3,965,313. As of the end of fiscal 2010, Mr. Smith has achieved four additional years of
credited service based upon his employment date.
(2) Includes the present value of medical insurance premiums payable on behalf of Mr. Smith in the
event of early retirement.
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