Pier 1 Imports 10-Q 9 Oct 13 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Aug. 31, 2013	Oct. 03, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Aug-13
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Trading Symbol	PIR
Entity Registrant Name	PIER 1 IMPORTS INC/DE
Entity Central Index Key	278130
Current Fiscal Year End Date	2
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		103,756,547

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Aug. 31, 2013	Aug. 25, 2012	Aug. 31, 2013	Aug. 25, 2012
Net sales	$395,641	$367,615	$790,495	$728,734
Cost of sales	234,342	216,066	461,598	426,911
Gross profit	161,299	151,549	328,897	301,823
Selling, general and administrative expenses	122,609	112,021	248,079	228,351
Depreciation and amortization	9,629	7,214	18,542	13,745
Operating income	29,061	32,314	62,276	59,727
Nonoperating expenses and (income):
Interest, investment income and other	-272	-443	-624	-1,871
Interest expense (income)	569	-2,107	1,318	-1,293
Nonoperating Income (Expense)	297	-2,550	694	-3,164
Income before income taxes	28,764	34,864	61,582	62,891
Income tax provision	10,930	8,633	23,401	18,835
Net income	$17,834	$26,231	$38,181	$44,056
Earnings per share:
Basic	$0.17	$0.25	$0.36	$0.41
Diluted	$0.17	$0.24	$0.35	$0.40
Dividends declared per share:	$0.05	$0.04	$0.10	$0.08
Average shares outstanding during period:
Basic	105,745	105,786	105,867	107,192
Diluted	107,249	107,447	107,819	109,154

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Aug. 31, 2013	Aug. 25, 2012	Aug. 31, 2013	Aug. 25, 2012
Net income	$17,834	$26,231	$38,181	$44,056
Other comprehensive income (loss)
Foreign currency translation adjustments	-637	1,375	-1,087	295
Pension adjustments	464	4	929	491
Other comprehensive income (loss), net of tax	-173	1,379	-158	786
Comprehensive income	$17,661	$27,610	$38,023	$44,842

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Aug. 31, 2013	Mar. 02, 2013	Aug. 25, 2012
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents, including temporary investments of $83,184, $191,568 and $75,536, respectively	$124,853	$231,556	$115,138
Accounts receivable, net	22,205	22,309	21,736
Inventories	444,661	356,053	420,801
Prepaid expenses and other current assets	56,364	49,016	24,799
Total current assets	648,083	658,934	582,474
Properties, net of accumulated depreciation of $415,913, $483,067 and $473,431, respectively	171,023	150,615	125,659
Other noncurrent assets	47,157	47,666	71,714
Assets, Total	866,263	857,215	779,847
Current liabilities:
Accounts payable	103,067	58,701	91,430
Gift cards and other deferred revenue	53,109	51,740	48,544
Accrued income taxes payable	6,984	25,249	10,859
Other accrued liabilities	101,454	112,437	98,882
Total current liabilities	264,614	248,127	249,715
Long-term debt	9,500	9,500	9,500
Other noncurrent liabilities	66,921	62,457	60,647
Shareholders' equity:
Common stock, $0.001 par, 500,000,000 shares authorized, 125,232,000 issued	125	125	125
Paid-in capital	228,521	233,518	229,002
Retained earnings	601,866	574,206	498,248
Cumulative other comprehensive loss	-4,986	-4,828	-3,687
Less - 19,601,000, 18,906,000 and 19,244,000 common shares in treasury, at cost, respectively	-300,298	-265,890	-263,703
Stockholders' Equity Attributable to Parent, Total	525,228	537,131	459,985
Commitments and contingencies
Liabilities and Equity, Total	$866,263	$857,215	$779,847

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Aug. 31, 2013	Mar. 02, 2013	Aug. 25, 2012
In Thousands, except Share data, unless otherwise specified
Cash and cash equivalents, temporary investments	$83,184	$191,568	$75,536
Properties, accumulated depreciation	$415,913	$483,067	$473,431
Common stock, par value	$0.00	$0.00	$0.00
Common stock, shares authorized	500,000,000	500,000,000	500,000,000
Common stock, shares issued	125,232,000	125,232,000	125,232,000
Treasury stock, shares	19,601,000	18,906,000	19,244,000

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Aug. 31, 2013	Aug. 25, 2012
Cash flow from operating activities:
Net income	$38,181	$44,056
Adjustments to reconcile to net cash (used in) provided by operating activities:
Depreciation and amortization	21,944	17,649
Stock-based compensation expense	7,271	5,989
Deferred compensation	3,840	3,312
Amortization of deferred gains	-1,464	-5,461
Change in reserve for uncertain tax positions	648	-7,352
Other	796	-1,807
Changes in cash from:
Inventories	-88,608	-98,319
Proprietary credit card receivables	-2,039	-2,130
Prepaid expenses and other assets	-7,054	-6,680
Accounts payable and accrued expenses	34,479	11,476
Accrued income taxes payable, net of payments	-18,435	-9,546
Net cash used in operating activities	-10,441	-48,813
Cash flow from investing activities:
Capital expenditures	-42,022	-37,858
Proceeds from disposition of properties	4,298	38
Proceeds from sale of restricted investments	425	1,176
Purchase of restricted investments	-2,154	-2,784
Net cash used in investing activities	-39,453	-39,428
Cash flow from financing activities:
Cash dividends	-10,521	-8,559
Purchases of treasury stock	-59,639	-79,281
Proceeds from stock options exercised, stock purchase plan and other, net	14,485	3,351
Debt issuance costs	-1,134
Net cash used in financing activities	-56,809	-84,489
Change in cash and cash equivalents	-106,703	-172,730
Cash and cash equivalents at beginning of period	231,556	287,868
Cash and cash equivalents at end of period	$124,853	$115,138

Consolidated_Statements_of_Sha

Consolidated Statements of Shareholders' Equity (USD $)	Total	Common Stock	Paid-in Capital	Retained Earnings	Cumulative Other Comprehensive Income (Loss)	Treasury Stock
In Thousands
Balance at Mar. 02, 2013	$537,131	$125	$233,518	$574,206	($4,828)	($265,890)
Balance (in shares) at Mar. 02, 2013		106,326
Net income	38,181			38,181
Other comprehensive income (loss)	-158				-158
Purchases of treasury stock	-59,639					-59,639
Purchases of treasury stock (in shares)		-2,594
Stock-based compensation (in shares)		718
Stock-based compensation	7,271		-2,817			10,088
Exercise of stock options, stock purchase plan and other (in shares)		1,181
Exercise of stock options, stock purchase plan and other	12,963		-2,180			15,143
Cash dividends ($.10 per share)	-10,521			-10,521
Balance at Aug. 31, 2013	$525,228	$125	$228,521	$601,866	($4,986)	($300,298)
Balance (in shares) at Aug. 31, 2013		105,631

Consolidated_Statements_of_Sha1

Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $)	6 Months Ended
	Aug. 31, 2013
Cash dividends, per share	$0.10

Earnings_per_share

Earnings per share	6 Months Ended
	Aug. 31, 2013
Earnings per share	Note 1 – Earnings per share
	Basic earnings per share amounts were determined by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share amounts were similarly computed, but included the dilutive effect of the Company’s weighted average number of stock options outstanding and shares of unvested restricted stock. Stock options for which the exercise price was greater than the average market price of common shares were not included in the computation of diluted earnings per share as the effect would be antidilutive. There were no stock options outstanding with exercise prices greater than the average market price of the Company’s common shares for the three and six months ended August 31, 2013, respectively. There were 2,178,000 and 2,180,000 stock options outstanding with exercise prices greater than the average market price of the Company’s common shares for the three and six months ended August 25, 2012, respectively. Earnings per share for the three and six months ended August 31, 2013 and August 25, 2012 were calculated as follows (in thousands except per share amounts):
		Three Months Ended				Six Months Ended
		August 31,		August 25,		August 31,		August 25,
		2013		2012		2013		2012
	Net income, basic and diluted	$	17,834	$	26,231	$	38,181	$	44,056
	Weighted average shares outstanding during period:
	Basic		105,745		105,786		105,867		107,192
	Effect of dilutive stock options		913		1,287		1,138		1,333
	Effect of dilutive restricted stock		591		374		814		629
	Diluted		107,249		107,447		107,819		109,154
	Earnings per share:
	Basic	$	0.17	$	0.25	$	0.36	$	0.41
	Diluted	$	0.17	$	0.24	$	0.35	$	0.4

Stockbased_compensation

Stock-based compensation	6 Months Ended
	Aug. 31, 2013
Stock-based compensation	Note 2 – Stock-based compensation
	For the three and six months ended August 31, 2013, the Company recorded stock-based compensation expense primarily related to restricted stock expense of $3,201,000 and $7,217,000, respectively. For the three and six months ended August 25, 2012, the Company recorded stock-based compensation expense primarily related restricted stock expense of $3,056,000 and $5,852,000, respectively. As of August 31, 2013 there was approximately $18,665,000 of total unrecognized compensation expense related to unvested restricted stock that may be recognized over a weighted average period of 2.1 years, if certain performance targets are achieved.

Defined_benefit_plans

Defined benefit plans	6 Months Ended
	Aug. 31, 2013
Defined benefit plans	Note 3 – Defined benefit plans
	The Company maintains supplemental retirement plans (the “Plans”) for certain of its executive officers. The Plans provide that upon death, disability, reaching retirement age, or certain termination events, a participant will receive benefits based on highest compensation, years of service and years of plan participation. Benefit costs are determined using actuarial cost methods to estimate the total benefits ultimately payable to executive officers and this cost is allocated to the respective service periods.
	The Plans are not funded and thus have no plan assets. The actuarial assumptions used to calculate benefit costs are reviewed annually, or in the event of a material change in the Plans or participation in the Plans. The components of net periodic benefit costs for the three and six months ended August 31, 2013 and August 25, 2012 are shown in the table below (in thousands). The amortization of amounts related to unrecognized prior service costs and net actuarial loss were reclassified out of other comprehensive income as a component of net periodic benefit cost.
		Three Months Ended					Six Months Ended
		August 31,		August 25,			August 31,		August 25,
		2013		2012			2013		2012
	Components of net periodic benefits cost:
	Service cost	$	364	$	338		$	728	$	677
	Interest cost		191		186			382		373
	Amortization of unrecognized prior service costs		103		103			205		205
	Amortization of net actuarial loss		348		350			696		698
	Settlement		—		(488	)		—		(488	)
	Net periodic benefit cost	$	1,006	$	489		$	2,011	$	1,465

Secured_credit_facility

Secured credit facility	6 Months Ended
	Aug. 31, 2013
Secured credit facility	Note 4 – Secured credit facility
	On June 18, 2013, the Company amended, renewed and extended its secured credit facility (“Credit Facility”). The Credit Facility was amended to extend the maturity date from April 4, 2016 to June 18, 2018 and increase the amount of the facility from $300,000,000 to $350,000,000. The Credit Facility continues to be secured by the Company’s merchandise inventory and credit card receivables. As of August 31, 2013, the Company had no borrowings and approximately $40,066,000 in letters of credit and bankers’ acceptances outstanding.
	Credit extensions under the Credit Facility are limited to the lesser of $350,000,000 or the amount of the calculated borrowing base, which was $350,000,000 as of August 31, 2013. At the Company’s option, borrowings will bear interest at either (a) the adjusted LIBOR rate plus a spread varying from 125 to 175 basis points per annum, depending on the amount then borrowed under the Credit Facility, or (b) the prime rate plus a spread varying from 25 to 75 basis points per annum, depending on the amount then borrowed under the Credit Facility. Provided that there is no default and no default would occur as a result thereof, the Company may request that the Credit Facility be increased to an amount not to exceed $450,000,000. Under the terms of the Credit Facility, the Company agrees to pay a fee on the unused portion of the Credit Facility at a rate of 25 basis points per annum. In addition, the Company will pay letter of credit fronting fees and fees on the amount of letters of credit outstanding. The amendment did not result in any other significant changes to the Credit Facility.

Income_taxes

Income taxes	6 Months Ended
	Aug. 31, 2013
Income taxes	Note 5 – Income taxes
	During the second quarter of fiscal 2013, the Company reversed a portion of its reserve for uncertain income tax positions for which the statute of limitations expired. This adjustment resulted in an income tax benefit of $5,857,000 during the second quarter of fiscal 2013. In addition, the Company reversed $2,757,000 of accrued interest related to these uncertain tax positions during the second quarter of fiscal 2013.

New_accounting_pronouncement

New accounting pronouncement	6 Months Ended
	Aug. 31, 2013
New accounting pronouncement	Note 6 – New accounting pronouncement
	In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which amends current comprehensive income guidance. This accounting update requires companies to provide information regarding the amounts reclassified out of accumulated other comprehensive income by component. This guidance was effective for the Company beginning in the first quarter of fiscal 2014 and the required disclosure is included in Note 3 – Defined benefit plans.

Earnings_per_share_Tables

Earnings per share (Tables)	6 Months Ended
	Aug. 31, 2013
Calculation of Earning Per Share	Earnings per share for the three and six months ended August 31, 2013 and August 25, 2012 were calculated as follows (in thousands except per share amounts):
		Three Months Ended				Six Months Ended
		August 31,		August 25,		August 31,		August 25,
		2013		2012		2013		2012
	Net income, basic and diluted	$	17,834	$	26,231	$	38,181	$	44,056
	Weighted average shares outstanding during period:
	Basic		105,745		105,786		105,867		107,192
	Effect of dilutive stock options		913		1,287		1,138		1,333
	Effect of dilutive restricted stock		591		374		814		629
	Diluted		107,249		107,447		107,819		109,154
	Earnings per share:
	Basic	$	0.17	$	0.25	$	0.36	$	0.41
	Diluted	$	0.17	$	0.24	$	0.35	$	0.4

Defined_benefit_plans_Tables

Defined benefit plans (Tables)	6 Months Ended
	Aug. 31, 2013
Components of Net Periodic Benefit Cost	The components of net periodic benefit costs for the three and six months ended August 31, 2013 and August 25, 2012 are shown in the table below (in thousands).
		Three Months Ended					Six Months Ended
		August 31,		August 25,			August 31,		August 25,
		2013		2012			2013		2012
	Components of net periodic benefits cost:
	Service cost	$	364	$	338		$	728	$	677
	Interest cost		191		186			382		373
	Amortization of unrecognized prior service costs		103		103			205		205
	Amortization of net actuarial loss		348		350			696		698
	Settlement		—		(488	)		—		(488	)
	Net periodic benefit cost	$	1,006	$	489		$	2,011	$	1,465

Earning_Per_Share_Additional_I

Earning Per Share - Additional Information (Detail)	3 Months Ended	6 Months Ended
	Aug. 25, 2012	Aug. 25, 2012
Earnings Per Share Disclosure [Line Items]
Stock option outstanding excluded from computation of earnings per share	2,178,000	2,180,000

Calculation_of_Earnings_Per_Sh

Calculation of Earnings Per Share (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Aug. 31, 2013	Aug. 25, 2012	Aug. 31, 2013	Aug. 25, 2012
Earnings Per Share Disclosure [Line Items]
Net income, basic and diluted	$17,834	$26,231	$38,181	$44,056
Basic	105,745	105,786	105,867	107,192
Diluted	107,249	107,447	107,819	109,154
Basic	$0.17	$0.25	$0.36	$0.41
Diluted	$0.17	$0.24	$0.35	$0.40
Employee Stock Option
Earnings Per Share Disclosure [Line Items]
Effect of dilutive stock	913	1,287	1,138	1,333
Restricted Stock Awards
Earnings Per Share Disclosure [Line Items]
Effect of dilutive stock	591	374	814	629

Stock_Based_Compensation_Addit

Stock Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Aug. 25, 2012	Aug. 31, 2013	Aug. 25, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Recorded stock-based compensation expense	$3,201,000	$3,056,000	$7,217,000	$5,852,000
Restricted Stock Awards
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized compensation expense	$18,665,000		$18,665,000
Weighted average period for recognizing unrecognized compensation expense, in years			2 years 1 month 6 days

Components_of_Net_Periodic_Ben

Components of Net Periodic Benefit Costs (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Aug. 31, 2013	Aug. 25, 2012	Aug. 31, 2013	Aug. 25, 2012
Components of net periodic benefits cost:
Service cost	$364	$338	$728	$677
Interest cost	191	186	382	373
Amortization of unrecognized prior service costs	103	103	205	205
Amortization of net actuarial loss	348	350	696	698
Settlement		-488		-488
Net periodic benefit cost	$1,006	$489	$2,011	$1,465

Secured_Credit_Facility_Additi

Secured Credit Facility - Additional Information (Detail) (USD $)	6 Months Ended	1 Months Ended		6 Months Ended
	Aug. 31, 2013	Jun. 18, 2013	Jun. 18, 2013	Aug. 31, 2013	Aug. 31, 2013	Aug. 31, 2013	Aug. 31, 2013	Aug. 31, 2013
	Secured credit facility	Secured credit facility	Secured credit facility	Secured credit facility	Secured credit facility	Secured credit facility	Secured credit facility	Letters Of Credit And Bankers' Acceptances
		Prior Credit Facility	New Credit Facility	LIBOR	LIBOR	Prime Rate	Prime Rate	New Credit Facility
				Minimum	Maximum	Minimum	Maximum
Line of Credit Facility [Line Items]
Credit facility, maturity date		4-Apr-16	18-Jun-18
Maximum borrowings under credit facility		$300,000,000	$350,000,000
Borrowings outstanding								40,066,000
Basis points				1.25%	1.75%	0.25%	0.75%
Potential increase to credit facility	450,000,000
Unused portion of credit facility, basis point	0.25%
Credit facility borrowing base	$350,000,000

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended
	Aug. 31, 2013
Income Taxes [Line Items]
Income tax provision due to reversal of unrecognized tax benefits	$5,857,000
Unrecognized tax benefits, reversal of accrued interest expense	$2,757,000