Pier 1 2010 Annual Report Download - page 137

BRP II participants may defer pre-tax amounts of up to 20% of their compensation (generally W-2
earnings). Participants’ contributions and the interest earned on those contributions are fully vested. No
loans are permitted. Pier 1 Imports’ matching contribution is (i) 100% of the first one percent of the
participant’s compensation deferral, and (ii) 50% of the next four percent of the participant’s
compensation deferral. Matching contributions and the interest earned on those contributions are subject
to the same vesting requirements as Pier 1 Imports’ 401(k) retirement plan regardless of whether the
participant is actually participating in the 401(k) plan. The 401(k) vesting schedule is 20% per year of
service (as defined in the plan) beginning with two years of service. Participants are fully vested in Pier 1
Imports’ matching contributions plus earnings after six years of service with Pier 1 Imports.
Each participant’s deferral amount plus the Pier 1 Imports match is credited at least quarterly with an
amount of interest at an annual rate equal to a daily average Moody’s Corporate Bond Index plus 1%.
Over the last three fiscal years, the annual interest rates have ranged from 7.03% to 7.47%. During fiscal
2010, the interest rates were 7.39% through December 31, 2009 and 7.47% January 1, 2010 through
February 27, 2010. The BRP II allows for an in-service lump-sum distribution for an unforeseen
emergency. Unless participants elect to have their account balance paid out to them in five annual
installments, then upon separation from Pier 1 Imports their current balance is paid out to them in a
lump-sum distribution, subject to delay as required by 409A.
Trusts have been established for the purpose of setting aside funds to be used to settle obligations under the
benefit restoration plans. The trusts assets are consolidated in Pier 1 Imports’ financial statements and consist of
interest yielding investments aggregating $6,000 at February 27, 2010. The trusts also own and are the beneficiaries
of a number of insurance policies on the lives of current and past key executives. At February 27, 2010, the cash
surrender value of these policies was $5,043,000. These investments are restricted and may only be used to satisfy
BRP obligations. Any future contributions will be made at the discretion of the board of directors and may be made
in the form of cash or other assets such as life insurance policies.
Name
Executive
Contributions in
Last Fiscal
Year(1)
($)
Registrant
Contributions in
Last Fiscal Year(2)
($)
Aggregate
Earnings in Last
Fiscal Year(3)
($)
Aggregate
Withdrawals /
Distributions
($)
Aggregate
Balance at Last
Fiscal Year-
End(4)
($)
Alexander W. Smith $12,115 $3,635 $30 $0 $15,780
Charles H. Turner $531 $531 $5,493 $0 $78,249
Michael R. Benkel $1,038 $692 $3 $0 $1,734
Gregory S. Humenesky $0 $0 $3,992 $0 $56,116
Sharon M. Leite $381 $381 $1 $0 $763
(1) Reflects participation by Messrs. Smith, Turner, Benkel and Humenesky and Ms. Leite during fiscal 2010 in the
Pier 1 Imports Benefit Restoration Plan II. Executive contribution amounts are included in each named
executive officer’s salary amount in the Summary Compensation Table above.
(2) Reflects Pier 1 Imports’ matching contribution credited to the account of each named executive officer. These
amounts are also included as All Other Compensation in the Summary Compensation Table above.
(3) Reflects interest earnings on compensation deferrals plus applicable matching contributions. The interest
earnings shown are the total amount of interest payments accrued. See the footnotes to the Summary
Compensation Table above for the above market earnings portion of these interest earnings in fiscal 2010.
(4) Mr. Turner and Mr. Humenesky are fully vested in BRP II. Mr. Smith and Ms. Leite are 60% vested in BRP II
matching contributions and interest earned on those contributions, and Mr. Benkel is 40% vested.
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