Pier 1 2011 Annual Report Download - page 112

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AUDIT COMMITTEE REPORT
Each member of the audit committee is an independent director, pursuant to the independence requirements of
the SEC and NYSE. In accordance with the committee’s written charter, the committee assists the board of directors
in overseeing the quality and integrity of Pier 1 Imports’ accounting, auditing and financial reporting practices. In
performing its oversight function, the committee reviewed and discussed Pier 1 Imports’ audited consolidated
financial statements as of and for the fiscal year ended February 26, 2011 with management and Pier 1 Imports’
independent registered public accounting firm, including a discussion of the quality, not just the acceptability, of the
accounting principles, the reasonableness of significant judgments, and the clarity of disclosures in the financial
statements. The committee also discussed with Pier 1 Imports’ independent registered public accounting firm all
matters required by generally accepted auditing standards, including those described in Statement on Auditing
Standards No. 61, “Communication with Audit Committees” and, with and without management present, discussed
and reviewed the results of the independent registered public accounting firm’s examination of the consolidated
financial statements.
The committee obtained from the independent registered public accounting firm a formal written statement
describing all relationships between the firm and Pier 1 Imports that might affect the firm’s independence consistent
with applicable requirements of the Public Company Accounting Oversight Board regarding the independent
accountant’s communications with the audit committee concerning independence. The committee also discussed
with the registered public accounting firm any relationships that may have an impact on its objectivity and
independence and satisfied ourselves that the registered public accounting firm is independent. The committee also
considered whether the provision of non-audit services by Ernst & Young LLP, Pier 1 Imports’ independent
registered public accounting firm for fiscal 2011, to Pier 1 Imports is compatible with maintaining Ernst & Young
LLP’s independence.
Based on the above-described review and discussions with management and the independent registered public
accounting firm, the committee recommended to the board of directors that Pier 1 Imports’ audited consolidated
financial statements be included in Pier 1 Imports’ Annual Report on Form 10-K for the fiscal year ended
February 26, 2011, for filing with the SEC.
AUDIT COMMITTEE
Terry E. London, Chairman
Michael R. Ferrari
Cece Smith
EXECUTIVE COMPENSATION
Compensation Committee Report
The compensation committee has reviewed and discussed with management the Compensation Discussion and
Analysis below. Based on the review and discussion, the compensation committee has recommended to the board of
directors that the Compensation Discussion and Analysis be included in Pier 1 Imports’ proxy statement.
COMPENSATION COMMITTEE
John H. Burgoyne, Chairman
Cece Smith
Compensation Discussion and Analysis
Pier 1 Imports is a global importer and is one of North America’s largest specialty retailers of imported
decorative home furnishings and gifts. Pier 1 Imports directly imports merchandise from more than 50 countries,
and sells a wide variety of decorative accessories, furniture, and seasonal assortments in its stores. Pier 1 Imports
conducts business as one operating segment and operates more than 1,000 stores in the United States and Canada
under the name Pier 1 Imports.
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