Pier 1 2011 Annual Report Download - page 132

participants and their dependents have the lifetime right to participate in comparable major medical and
hospitalization insurance coverage as made available generally to Pier 1 Imports employees and their dependents. If
the executive elects such coverage, he or she must pay a portion of the total premium. In the event of termination of
employment for reasons other than cause and prior to retirement eligibility, the participant and his or her dependents
have the right to participate in such comparable major medical and hospitalization insurance coverage during the 15
years immediately after the date the participant attains age 65. If the participant elects such coverage, he or she must
pay the total premium associated with the coverage.
The following table shows the present value of each named executive officer’s total accumulated benefit under
Pier 1 Imports’ Supplemental Retirement Plan as of the fiscal year ended February 26, 2011.
Name
Number of Years
Credited Service(1)
(#)
Present Value of
Accumulated Benefit(2)
($)
Payments During Last
Fiscal Year
($)
Alexander W. Smith 11.67 $6,562,422 $0
Charles H. Turner 20 $3,798,215 $0
Gregory S. Humenesky 7 $ 445,172 $0
(1) With the exception of Mr. Smith, the number of years of credited service for plan purposes equals the
years of credited vesting service as determined by Pier 1 Imports’ 401(k) plan for the participant,
regardless of whether the participant is actually participating in the 401(k) plan. In all cases except
Mr. Smith, the years of credited service shown equals the named executive officer’s years of
employment with Pier 1 Imports. Pursuant to his initial employment agreement, Mr. Smith was
entitled to participate in the Supplemental Retirement Plan so as to achieve the same level of benefit
as his accrued benefit under the supplemental executive retirement plan of his former employer.
Therefore, in fiscal 2008 Mr. Smith was credited with 10 years of plan participation upon enrollment
in the plan and 6.67 years of credited service as of his employment date with Pier 1 Imports. The
additional 6.67 years of credited service accounts for $3,750,759 of his total present value of
accumulated benefit of $6,562,422. As of the end of fiscal 2011, Mr. Smith has achieved five
additional years of credited service based upon his employment date.
(2) Includes the present value of medical insurance premiums payable on behalf of Mr. Smith in the
event of early retirement.
Benefits under the plan for each participant are prorated for years of credited service with Pier 1 Imports of less
than 20 years. In addition, each participant becomes vested in that benefit based on years of plan participation under
the following schedule:
Years of Plan Participation Vesting Percentage
Less than 1 0%
1 but less than 2 10%
2 but less than 3 20%
3 but less than 4 30%
4 but less than 5 40%
5 but less than 6 50%
6 but less than 7 60%
7 but less than 8 70%
8 but less than 9 80%
9 but less than 10 90%
10 or more 100%
Vesting is accelerated to 100% upon an early retirement, normal retirement, termination of employment in certain
circumstances as a result of a change in control (“double-trigger”) of Pier 1 Imports, or death or disability of the
participant. Messrs. Smith and Turner each have more than 10 years of plan participation. Mr. Humenesky has
5 years of plan participation.
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