Pier 1 2011 Annual Report Download - page 35

During fiscal 2011, the Company did not make any repurchases of shares of its outstanding common
stock other than 117,078 shares acquired from employees to satisfy tax withholding obligations that arose upon
vesting of restricted stock granted pursuant to approved plans.
Subsequent to year end, as part of the Company’s three-year growth plan, the Company’s Board of
Directors approved an initial share repurchase program that authorizes the repurchase of up to $100 million of
the Company’s common stock in open market or private transactions. The timing of the repurchases will depend
on several factors including, but not limited to, prevailing market conditions and prices.
A summary of the Company’s contractual obligations and other commercial commitments as of
February 26, 2011 is listed below (in thousands):
Amount of Commitment per Period
Total
Less Than
1 Year
1to3
Years
3to5
Years
More Than
5 Years
Operating leases $ 728,015 $ 211,000 $ 327,174 $ 145,146 $ 44,695
Assets retirement obligation 2,803 278 1,196 978 351
Purchase obligations (1) 143,802 143,802 - - -
Standby letters of credit (2) 43,200 43,200 - - -
Industrial revenue bonds (2) 9,500 - - - 9,500
Interest on industrial revenue
bonds (3) 434 28 55 55 296
Interest and related fees on
secured credit facility (4) 10,304 2,086 4,013 4,013 192
Other obligations (5) (6) 37,041 1,016 2,301 12,334 21,390
Total (7) $ 975,099 $ 401,410 $ 334,739 $ 162,526 $ 76,424
Liabilities recorded on the balance sheet 73,250
Commitments not recorded on the balance sheet 901,849
Total $ 975,099
(1) As of February 26, 2011, the Company had approximately $143.8 million of outstanding purchase orders, which were primarily related
to merchandise inventory, and included $3.5 million in merchandise letters of credit and bankers’ acceptances. Such orders are generally
cancelable at the discretion of the Company until the order has been shipped. The table above excludes certain executory contracts for
goods and services that tend to be recurring in nature and similar in amount year over year.
(2) The Company also has outstanding standby letters of credit totaling $9.7 million related to the Company’s industrial revenue bonds. This
amount is excluded from the table above as it is not incremental to the Company’s total outstanding commitments.
(3) The interest rates on the Company’s industrial revenue bonds are variable and reset weekly. The estimated interest payments included in
the table were calculated based upon the rate in effect at fiscal 2011 year end and exclude fees for the related standby letter of credit
which are included elsewhere in this table.
(4) Represents estimated commitment fees for trade and standby letters of credit, and unused fees on the Company’s $300 million secured
credit facility, which subsequent to fiscal year end was amended and restated on April 4, 2011, extending the expiration from May 2012
to April 2016. Fees are calculated based upon balances at fiscal 2011 year end and the applicable rates in effect under the terms of the
Company’s $300 million secured credit facility.
(5) Other obligations include the Company’s liability under various unfunded retirement plans. See Note 6 of the Notes to Consolidated
Financial Statements for further discussion of the Company’s employee benefit plans.
(6) Excluded from this table, but recorded on the Company’s balance sheet, is the noncurrent portion of reserves for uncertain tax positions
of $13.7 million for which the Company is not reasonably able to estimate the timing of future cash flows.
(7) The above amounts do not include payments that may be due under employment agreement(s) with certain employee(s).
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