Pier 1 2010 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2010 Pier 1 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
and have a term of ten years from the grant date. The employee options are fully vested upon death, disability or
retirement of the employee. The 2006 Plan’s administrative committee also has the discretion to take certain
actions with respect to stock options, such as accelerating the vesting, upon certain corporate changes (as defined
in the 2006 Plan). Non-employee director options are fully vested on the date of grant, and are exercisable for a
period of ten years.
The 1999 Stock Plan provided for the granting of options to directors and employees with an exercise
price not less than the fair market value of the common stock on the date of the grant. The 1999 Stock Plan
provided that a maximum of 14,500,000 shares of common stock could be issued under the 1999 Stock Plan, of
which not more than 250,000 shares could be issued under the Director Deferred Stock Program. The options
issued to employees vest equally over a period of four years, while non-employee directors’ options were fully
vested at the date of issuance. Both options have a term of ten years from the grant date. The employee options
are fully vested upon death, disability, or retirement of an employee, or under certain conditions, such as a
change in control of the Company, unless the Board of Directors determines otherwise prior to a change of
control event. As of February 27, 2010, there were no shares available for grant under the 1999 Stock Plan. All
future stock option grants will be made from shares available under the 2006 Plan. Additionally, outstanding
options covering 4,885,250 and 7,757,400 shares were exercisable under the 1999 Stock Plan at fiscal years
ended 2010 and 2009, respectively.
Under the 1989 Employee Stock Option Plan, options vest over a period of four to five years and all have
a term of ten years from the grant date. As of February 27, 2010 and February 28, 2009, outstanding options
covering 294,000 and 368,975 shares were exercisable, respectively. As a result of the expiration of the plan
during fiscal 2005, no shares are available for future grant. The plan was subject to adjustments for stock
dividends and certain other changes to the Company’s capitalization.
62