Pier 1 2012 Annual Report Download - page 127

additional 6.67 years of credited service accounts for $5,266,882 of his total present value of
accumulated benefit of $10,004,706. As of the end of fiscal 2012, Mr. Smith has achieved six
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 within 24 months 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 6
years of plan participation.
No named executive officer who participates in the plan qualifies for normal retirement under the plan, which
requires a participant’s attainment of age 65. A participant qualifies for early retirement if the participant has at least
10 years of plan participation and retires at or after age 55 and before age 65. If a participant retires from Pier 1
Imports after age 55 but before age 65, the calculated benefit prior to adjustment for Social Security benefits is
reduced by 5% for each year that retirement precedes age 65. Mr. Smith is eligible for early retirement.
Refer to note #6 to the Pier 1 Imports, Inc. consolidated financial statements in the 2012 Form 10-K for a
discussion of the valuation method and material assumptions applied in quantifying the present value of the current
accrued benefit for the plan shown in the “Pension Benefits Table for the Fiscal Year Ended February 25, 2012”
above.
Non-Qualified Deferred Compensation Table for the Fiscal Year Ended February 25, 2012
The following table shows the value as of the fiscal year ended February 25, 2012 of each named executive
officer’s total benefit under the non-qualified deferred compensation plans of Pier 1 Imports in which the executive
participates. Pier 1 Imports’ non-qualified deferred compensation plans are:
•Pier 1 Benefit Restoration Plan II – The Pier 1 Benefit Restoration Plan II (“BRP II”) permitted select
members of management and highly compensated employees of Pier 1 Imports to defer compensation.
Additionally, Pier 1 Imports recognized the value of the past and present services of employees
participating in the BRP II by making matching contributions to employee deferrals plus paying interest
on the deferral and match amounts.
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