Pier 1 2010 Annual Report Download - page 65

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
beneficiary of a number of insurance policies on the lives of current and former key executives that are
unrestricted as to use. At the discretion of the Board of Directors such policies could be contributed to these
trusts or to the trusts established for the purpose of setting aside funds to be used to satisfy obligations arising
from supplemental retirement plans described below. The cash surrender value of these unrestricted policies was
$17,109,000 at February 27, 2010, and the death benefit was $26,952,000. These cash surrender values are
carried in the Company’s consolidated financial statements in other non-current assets.
The Company maintains supplemental retirement plans (the “Plans”) for certain of its executive officers.
The Plans provide that upon death, disability, reaching retirement age and certain termination events, a
participant will receive benefits based on highest compensation, years of service and years of plan participation.
The Company recorded expenses related to the Plans of $2,484,000, $3,210,000 and $3,511,000 in fiscal 2010,
2009 and 2008, respectively.
The Plans are not funded and thus have no plan assets. However, a trust has been established for the
purpose of setting aside funds to be used to settle the defined benefit plan obligations upon retirement or death of
certain participants. The trust assets are consolidated in the Company’s financial statements and consist of
interest bearing investments in the amount of $17,000 included in other noncurrent assets at both February 27,
2010 and February 28, 2009. These investments are restricted and may only be used to satisfy retirement
obligations to certain participants. The Company has accounted for these restricted investments as
available-for-sale securities. Cash contributions of $1,689,000 and $0 were made to the trust in fiscal 2010 and
2009, respectively. Any future contributions will be made at the discretion of the Board of Directors. Restricted
investments from the trust were sold to fund retirement benefits of $1,689,000 and $0 in fiscal 2010 and 2009,
respectively. Funds from the trust will be used to fund or partially fund benefit payments. The Company expects
to pay $3,089,000 during fiscal 2011, $118,000 during fiscal 2012, $1,783,000 during fiscal 2013, $127,000
during fiscal 2014, $9,473,000 during fiscal 2015 and $8,276,000 during fiscal years 2016 through 2020.
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