Pier 1 2010 Annual Report Download - page 64

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
Year Ended March 1, 2008
(in thousands)
Pier 1
Imports, Inc.
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries Eliminations Total
Cash flow from operating activities:
Net cash provided by (used in) operating
activities $ 7,230 $ (94,318) $ 4,014 $ - $ (83,074)
Cash flow from investing activities:
Capital expenditures - (7,153) - - (7,153)
Proceeds from disposition of properties - 5,674 - - 5,674
Proceeds from the sale of restricted
investments - 6,986 - - 6,986
Purchase of restricted investments - (589) - - (589)
Collections of principal on beneficial
interest in securitized receivables - 1,500 - - 1,500
Net cash provided by investing activities - 6,418 - - 6,418
Cash flow from financing activities:
Proceeds from stock options exercised,
stock purchase plan and other, net 3,909 - - - 3,909
Debt issuance costs - (998) - - (998)
Advances (to) from subsidiaries (69,272) 72,023 (2,751) - -
Net cash provided by (used in) financing
activities (65,363) 71,025 (2,751) - 2,911
Change in cash and cash equivalents (58,133) (16,875) 1,263 - (73,745)
Cash and cash equivalents at beginning of
period 111,163 43,699 12,316 - 167,178
Cash and cash equivalents at end of period $ 53,030 $ 26,824 $ 13,579 $ - $ 93,433
NOTE 7 – EMPLOYEE BENEFIT PLANS
The Company offers a qualified defined contribution employee retirement plan to all its full- and part-
time personnel who are at least 18 years old and have been employed for a minimum of six months. During fiscal
2010, 2009 and 2008, employees contributing 1% to 5% of their compensation received a matching Company
contribution of up to 3%. During fiscal 2010, the Company match became discretionary. Company contributions
to the plan were $1,823,000, $2,082,000 and $2,305,000 in fiscal 2010, 2009 and 2008, respectively.
In addition, the Company offers non-qualified deferred compensation plans for the purpose of providing
deferred compensation for certain employees whose benefits under the qualified plan may be limited under
Section 401(k) of the Internal Revenue Code. The Company’s expense for these non-qualified plans was
$508,000, $690,000 and $831,000 for fiscal 2010, 2009 and 2008, respectively. The Company has trusts
established for the purpose of setting aside funds to be used to settle certain obligations of these non-qualified
deferred compensation plans and contributed $1,965,000 and used $2,208,000 to satisfy a portion of retirement
obligations during fiscal 2010. As of February 27, 2010 and February 28, 2009, the trusts’ assets consisted of
interest bearing investments of $6,000 and $247,000 and life insurance policies with cash surrender values of
$5,043,000 and $5,409,000 and death benefits of $11,683,000 and $13,486,000, respectively. The trust assets are
restricted and may only be used to satisfy obligations to plan participants. The Company owns and is the
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