Pier 1 2013 Annual Report Download - page 124

Fair value is calculated using the closing price of Pier 1 Imports’ common stock on the accounting grant date.
These amounts reflect Pier 1 Imports’ accounting expense for these awards, and do not necessarily correspond
to the actual value that will be recognized by the NEO.
(2) Mr. Benkel was not an NEO in fiscal 2011 and fiscal 2012.
(3) This column represents the amount of base salary earned by the NEO during each fiscal year.
(4) This column represents the accounting grant date fair value of performance-based and time-based restricted
stock awards issued during the fiscal year. These amounts reflect Pier 1 Imports’ accounting expense for these
awards in accordance with accounting rules, and do not necessarily correspond to the actual value that will be
recognized by the NEO. For time-based and Profit Goal performance-based restricted stock awards, fair value is
calculated using the closing price of Pier 1 Imports’ common stock on the date of grant. If the date of grant
occurs on a day when Pier 1 Imports’ common stock is not traded, then the closing price on the last trading day
before the date of grant is used. The closing price on the date of grant for fiscal 2013 grants was $18.29 and
$15.58 for Mr. Smith and $18.29 and $18.80 for the other NEOs. For TSR performance-based restricted stock
awards, fair value was $12.41, which was determined by a valuation model. The amounts shown exclude the
impact of estimated forfeitures related to service-based vesting conditions. For Profit Goal performance-based
awards, the grant date fair value is based on the probable outcome of Pier 1 Imports achieving performance
targets. The amounts in the table assume targets are met and the maximum number of shares awarded will vest.
For TSR performance-based awards, the grant date fair value is based on the probability Pier 1 Imports’
percentile of the annual equivalent return of its total shareholder return ranking within a peer group over a three
year period will meet or exceed the established threshold.
(5) This column includes the short-term incentive cash award amounts earned during the fiscal year for each NEO.
(6) This column represents the sum of the change in pension value and above-market earnings on non-qualified
deferred compensation earnings for each of the NEOs. Mr. Benkel and Mses. David and Leite do not participant
in a Pier 1 Imports defined benefit plan.
The change in pension values were:
Name
Fiscal
2013
Fiscal
2012
Fiscal
2011
Alexander W. Smith $3,746,136 $3,442,284 $2,597,109
Charles H. Turner $1,580,227 $ 575,464 $ 941,355
These amounts include the change in the value of retiree medical insurance premiums. For Mr. Turner, the value
of the medical insurance premiums was not included prior to fiscal 2013 because he was not eligible for early
retirement under the plan.
See “Pension Benefits Table for the Fiscal Year Ended March 2, 2013” below for additional information.
There were no above-market earnings in fiscal 2012 and 2013 on the non-qualified deferred compensation plan
in which the NEOs participated. In fiscal 2011, above-market earnings on the non-qualified deferred
compensation plan for Mr. Smith were $519, for Mr. Turner were $656, for Ms. David were $66 and for
Ms. Leite were $26. Above-market earnings represent the difference between 120% of the long-term applicable
federal rate at the time the rate for the plan was selected and the annual interest credited in calendar years 2013,
2012, 2011 and 2010 of 4.72%, 5.81%, 5.99% and 7.47%, respectively, by Pier 1 Imports on salary deferred by
the NEOs plus Pier 1 Imports match amounts under the Pier 1 Benefit Restoration Plan II described below under
the caption “Non-Qualified Deferred Compensation Table for the Fiscal Year Ended March 2, 2013.” Additional
information about this plan and the indicated NEO’s participation is shown in that table.
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