Pier 1 2015 Annual Report Download - page 57

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
At February 28, 2015, there was approximately $144,000 of total unrecognized compensation expense related to unvested
stock option awards, which is expected to be recognized over a weighted average period of 2.0 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 $92,000, $94,000 and $170,000 in
fiscal 2015, 2014 and 2013, respectively.
Director deferred stock units —The 2006 Plan and the 1999 Stock Plan authorize director deferred stock unit awards to non-
employee directors. During fiscal 2015, 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
279,540 shares and 683,380 shares deferred, but not delivered, as of February 28, 2015 and March 1, 2014, 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 2015, approximately 54,560 director deferred stock units were granted,
458,400 units were delivered and no units were cancelled. Compensation expense for the director deferred stock awards was
$826,000, $821,000 and $700,000 in fiscal 2015, 2014 and 2013, respectively.
Stock purchase plan — Substantially all Company associates 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
market prices through regular payroll deductions. Each associate may contribute up to 20% of the eligible portions of
compensation, and non-employee directors may contribute up to 100% of their director compensation. The Company
contributes an amount equal to 25% of the participant’s contributions. Company contributions to the plan were $465,000,
$492,000 and $431,000 in fiscal years 2015, 2014 and 2013, respectively.
Preferred Stock — As of February 28, 2015, the Company’s restated certificate of incorporation authorized 20,000,000 shares
of preferred stock having a par value of $1.00 per share to be issued. No such shares have been issued.
Dividends — The Company paid cash dividends of $21,627,000, $21,697,000 and $17,989,000 in fiscal years 2015, 2014
and 2013, respectively. On April 8, 2015, subsequent to year end, the Company announced a $0.07 per share quarterly cash
dividend on the Company’s outstanding shares of common stock. The $0.07 quarterly cash dividend will be paid on May 6,
2015 to shareholders of record on April 22, 2015.
Shares reserved for future issuances — As of February 28, 2015, the Company had approximately 5,175,656 shares of
common stock reserved for future issuances under the stock plans. This amount includes stock options outstanding, director
deferred stock units and shares available for future grant.
Share repurchase plan — The following table summarizes the Company’s total share repurchases during fiscal 2015, 2014
and 2013:
Shares Purchased
Date Program
Announced Authorized Amount Date Completed Fiscal Year 2015 Fiscal Year 2014 Fiscal Year 2013
Weighted
Average
Cost
Remaining
Available as of
February 28, 2015
Oct. 14, 2011 $100,000,000 Dec. 14, 2012 — — 5,822,142 $17.18 $ —
Dec. 13, 2012 100,000,000 Sep. 30, 2013 — 4,525,805 — 22.10 —
Oct. 18, 2013 200,000,000 Apr. 10, 2014 5,071,812 5,262,452 — 19.35 —
Apr. 10, 2014 200,000,000 5,208,500 — — 14.94 122,176,217
In fiscal 2015, the Company had cash outflows of $185,540,000 related to share repurchases. These share repurchases
included $173,932,000 for shares of common stock repurchased in fiscal 2015 and included $11,600,000 for shares
repurchased in fiscal 2014 that were settled in fiscal 2015. Subsequent to year end, through April 24, 2015, under the April
2014 $200,000,000 program, the Company utilized a total of $5,080,000 to repurchase 383,000 shares of the Company’s
common stock at a weighted average price per share of $13.26 and $117,096,000 remained available for further repurchases
under that program.
PIER 1 IMPORTS, INC. 2015 Form 10-K 51