Pier 1 2010 Annual Report Download - page 136

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:
Years of Plan Participation Vesting 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 and Turner each have more than 10 years of plan participation. Mr. Humenesky has 4 years of plan
participation.
No named executive officer who participates in the plan 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 2010 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 27, 2010
The following table shows the value as of the fiscal year ended February 27, 2010 of each named executive
officer’s total benefit under the non-qualified deferred compensation plan of Pier 1 Imports in which the executive
participates. 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.
Effective December 31, 2004, the BRP was closed to further contributions by participants. The plan was
renamed the BRP I and Pier 1 Imports offered after that date the BRP II plan described below. Only
vested account balances remain in the BRP I along with the interest continuing to be earned on those
amounts. The named executive officers did not have account balances in BRP I during fiscal 2010.
•Pier 1 Imports Benefit Restoration Plan II – All unvested BRP I amounts were transferred to the Pier 1
Imports BRP II. The BRP II has the same purpose as the BRP I, but was adopted to separate the portion of
the BRP that became subject to new deferred compensation taxation laws effective January 1, 2005
generally referred to as 409A.
44