Pier 1 2014 Annual Report Download - page 52

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A summary of stock option transactions related to the Company’s stock option grants during the three fiscal years ended
March 1, 2014 is as follows:
Weighted
Average
Exercise
Price
Weighted
Average
Fair Value
at Date
of Grant
Exercisable Shares
Shares Number of Shares
Weighted
Average
Exercise
Price
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
Options granted 13,248 23.19 6.70
Options exercised (1,627,500) 12.90
Options cancelled or expired (16,000) 17.28
Outstanding at March 1, 2014 1,857,873 9.45 1,830,900 9.31
For options outstanding at March 1, 2014 Weighted
Average
Remaining
Contractual
Life
(in years)
Weighted
Average
Exercise Price-
Exercisable
SharesRanges of Exercise Prices Total Shares
Weighted
Average
Exercise
Price
Shares
Currently
Exercisable
$4.24 — $6.69 964,000 $ 6.64 3.01 964,000 $ 6.64
$7.42 — $11.27 385,625 7.62 3.27 384,125 7.62
$11.47 — $17.25 478,100 15.90 0.84 474,800 15.93
$18.49 — $23.19 30,148 20.68 7.30 7,975 18.61
As of March 1, 2014, the weighted average remaining contractual term for outstanding and exercisable options was 2.58 years
and 2.49 years, respectively. The aggregate intrinsic value for outstanding and exercisable options was $17,645,000 and
$17,604,000, respectively, at fiscal 2014 year end. The total intrinsic value of options exercised for fiscal years 2014, 2013 and
2012 was approximately $16,380,000, $13,420,000 and $3,557,000, 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 1, 2014, there was approximately $189,000 of total unrecognized compensation expense related to unvested stock
option awards, which is expected to be recognized over a weighted average period of 2.4 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 $94,000, $170,000 and $462,000 in
fiscal 2014, 2013 and 2012, 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 2014, 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 Company in the form of director deferred stock units. There were
683,380 shares and 647,027 shares deferred, but not delivered, as of March 1, 2014 and March 2, 2013, respectively, under
the 2006 Plan and the 1999 Stock Plan. During the term of the 2006 Plan, all future deferred stock unit awards will be from
shares available under the plan. During fiscal 2014, approximately 36,353 director deferred stock units were granted, no units
were delivered and no units were cancelled. Compensation expense for the director deferred stock awards was $821,000,
$700,000 and $642,000 in fiscal 2014, 2013 and 2012, respectively.
Stock purchase plan — Substantially all Company employees and all non-employee directors are eligible to participate in the
Pier 1 Imports, Inc. Stock Purchase Plan under which the Company’s common stock is purchased on behalf of participants at
48 PIER 1 IMPORTS, INC. 2014 Form 10-K