Pier 1 2009 Annual Report Download - page 77

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 8—MATTERS CONCERNING SHAREHOLDERS’ EQUITY (Continued)
during fiscal 2009 pursuant to the 2006 Plan was $7.45 and is being expensed over the requisite vesting
period of three years. As of fiscal 2009 year end, no shares were available for future grant under the
Management Restricted Stock Plan since all future grants, if any, will be made from shares available
under the 2006 Plan.
Compensation expense for restricted stock was $1,649,000, or $0.02 per share, $1,559,000, or $ 0.02
per share, and $970,000, or $0.01 per share in fiscal 2009, 2008 and 2007, respectively. As of
February 28, 2009, there was $3,122,000 of total unrecognized compensation expense related to
restricted stock that may be recognized over a weighted average period of 1.62 years if all performance
targets are met. The total fair value of restricted stock awards vested was $1,076,000, $664,000, and
$456,000 in fiscal 2009, 2008 and 2007, respectively.
Director deferred stock units—The 2006 Plan and the 1999 Stock Plan also authorize director
deferred stock unit awards to be granted to non-employee directors. During fiscal 2009, each director
could elect to defer up to 100% of their director’s cash fees into a deferred stock unit account. The
annual retainer fees deferred (other than committee chairman and chairman annual retainers) received
a 25% matching contribution from the Company in the form of director deferred stock units. As of
February 28, 2009 and March 1, 2008, there were 554,292 shares and 360,939 shares deferred, but not
delivered, under the 2006 Plan and the 1999 Stock Plan. All future grants will be awarded from shares
available for grant under the 2006 Plan. During fiscal 2009, approximately 193,352 director deferred
stock units were granted, no shares were delivered, and no shares were cancelled. Compensation
expense for the director deferred stock awards was $1,015,000, $1,084,000 and $557,000 in fiscal 2009,
2008 and 2007, respectively.
Stock purchase plan—Substantially all Company employees 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
employees at market prices through regular payroll deductions. Each participant may contribute up to
20% of the eligible portions of compensation. The Company contributes 25% of the participants’
contributions. Prior to June 20, 2008, a participant could contribute up to 10% of eligible
compensation, and the Company contributed from 10% to 100% of the participant’s contribution,
depending on length of participation and date of entry into the plan. Company contributions to the
plan were $263,000, $786,000 and $1,143,000 in fiscal years 2009, 2008 and 2007, respectively. As of
March 29, 2009, the Company’s stock purchase plan was suspended.
Shares reserved for future issuances—As of February 28, 2009, the Company had approximately
15,770,000 shares reserved for future issuances under the stock plans. This amount includes stock
options outstanding, director deferred units and shares available for future grant.
NOTE 9—PROPRIETARY CREDIT CARD INFORMATION
On September 6, 2006, the Company allowed its agreement to securitize its proprietary credit card
receivables to expire. At the time of expiration, the Company purchased $144,007,000 of proprietary
credit card receivables, previously held by the Master Trust, an unconsolidated subsidiary, for
$100,000,000 in cash and in exchange for $44,007,000 of beneficial interest. The Master Trust, upon
approval from the Class A Certificate holders, paid $100,000,000 to redeem the Class A Certificates
that were outstanding.
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