Pier 1 2013 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2013 Pier 1 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
outstanding options covering 213,000 and 258,000 shares were exercisable, respectively. As a result of the
expiration of the plan during fiscal 2005, no shares are available for future grant.
A summary of stock option transactions related to the Company’s stock option grants during the three
fiscal years ended March 2, 2013 is as follows:
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Fair Value
at Date
of Grant
Exercisable Shares
Number
of Shares
Weighted
Average
Exercise Price
Outstanding at February 27, 2010 9,186,225 12.36 7,440,275 13.62
Options granted 6,000 8.64 7.16
Options exercised (588,000) 7.77
Options cancelled or expired (1,394,075) 15.43
Outstanding at February 26, 2011 7,210,150 12.14 6,897,450 12.36
Options granted 6,600 11.47 9.43
Options exercised (893,275) 7.97
Options cancelled or expired (588,000) 18.23
Outstanding at February 25, 2012 5,735,475 12.16 5,620,525 12.26
Options granted 11,900 18.80 14.75
Options exercised (1,545,500) 11.08
Options cancelled or expired (713,750) 20.09
Outstanding at March 2, 2013 3,488,125 11.05 3,468,275 11.02
For options outstanding at March 2, 2013
Ranges of Exercise Prices
Total
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (in years)
Shares
Currently
Exercisable
Weighted
Average
Exercise Price-
Exercisable
Shares
$4.24 - $6.69 1,520,000 $ 6.66 3.99 1,520,000 $ 6.66
$7.42 - $11.27 594,125 7.61 4.20 591,125 7.61
$11.47 - $17.25 842,100 16.12 1.73 837,150 16.15
$18.49 - $20.35 531,900 19.39 0.74 520,000 19.40
As of March 2, 2013, the weighted average remaining contractual term for outstanding and exercisable
options was 2.99 years and 2.96 years, respectively. The aggregate intrinsic value for outstanding and exercisable
options was $40,127,000 and $39,986,000, respectively, at fiscal 2013 year end. The total intrinsic value of
options exercised for the fiscal years 2013, 2012 and 2011 was approximately $13,420,000, $3,557,000 and
$1,185,000, respectively. The intrinsic value of a stock option is the amount by which the market value of the
underlying stock exceeds the exercise price of the option.
At March 2, 2013, there was approximately $195,000 of total unrecognized compensation expense related
to unvested stock option awards, which is expected to be recognized over a weighted average period of 2.8 years.
The fair value of the stock options is amortized on a straight-line basis as compensation expense over the vesting
periods of the options. The Company recorded stock-based compensation expense related to stock options of
approximately $170,000, $462,000 and $904,000 in fiscal 2013, 2012 and 2011, respectively.
Director deferred stock units –The 2006 Plan and the 1999 Stock Plan also authorize director deferred
stock unit awards to non-employee directors. During fiscal 2013, directors could elect to defer all or a portion of
their director’s cash fees into a deferred stock unit account. The annual retainer fees deferred (other than
committee chairman and chairman of the board annual retainers) received a 25% matching contribution from the
50