Pier 1 2016 Annual Report Download - page 35

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
was readily available. Level 2 inputs include quoted prices in active markets for similar assets or liabilities; quoted prices for
identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by
observable market data for substantially the full term of the asset or liability.
The Term Loan Facility includes restrictions on the Company’s ability to, among other things, incur or guarantee additional
indebtedness, pay dividends on, or redeem or repurchase shares of the Company’s capital stock, make certain acquisitions or
investments, materially change the business of the Company, incur or permit to exist certain liens, enter into transactions with
affiliates or sell the Company’s assets to, or merge or consolidate with or into, another company, in each case subject to certain
exceptions. The Term Loan Facility does not require the Company to comply with any financial maintenance covenants, but
contains certain customary representations and warranties, affirmative covenants and provisions relating to events of default. The
Term Loan Facility provides for incremental facilities, subject to certain conditions, including the meeting of certain leverage ratio
requirements as defined therein, to the extent such facilities exceed an incremental $200.0 million.
Share Repurchase Program
During fiscal 2016, the Company repurchased approximately 8% of the Company’s common stock outstanding at the beginning
of the year under the April 2014 program. As of February 27, 2016, the Company had repurchased 12,669,435 shares of its
common stock under the April 2014 program at a weighted average cost of $12.06 per share for a total cost of $152.8 million,
and $47.2 million remained available for further repurchases. In fiscal 2016, the Company had cash outflows of $75.0 million
related to shares of common stock repurchased in fiscal 2016. Subsequent to year end, through April 20, 2016, under the April
2014 program, the Company utilized a total of $0.8 million to repurchase 120,000 shares of the Company’s common stock at a
weighted average price per share of $7.01 and $46.3 million remained available for further repurchases under that program.
During fiscal 2015, the Company repurchased approximately 10% of the Company’s common stock outstanding at the
beginning of fiscal 2015 under the share repurchase program announced in October of 2013 and the April 2014 program. The
Company’s share repurchase program announced on October 18, 2013, was completed on April 10, 2014 with total
repurchases during fiscal 2015 of 5,071,812 shares at a weighted average cost of $18.95 per share for a total cost of $96.1
million. The April 2014 program was announced on April 10, 2014. As of February 28, 2015, the Company had repurchased
5,208,500 shares of its common stock under the April 2014 program at a weighted average cost of $14.94 per share for a total
cost of $77.8 million, and $122.2 million remained available for further repurchases. In fiscal 2015, the Company had cash
outflows of $185.5 million related to share repurchases. These share repurchases included $173.9 million for shares of common
stock repurchased in fiscal 2015 and $11.6 million for shares of common stock repurchased in fiscal 2014 that settled in fiscal
2015.
Dividends Payable
On April 13, 2016, 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 per share quarterly cash dividend will be paid on May 11, 2016, to
shareholders of record on April 27, 2016.
PIER 1 IMPORTS, INC. 2016 Form 10-K 29