Pier 1 Imports 10-Q 8 Jan 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Nov. 30, 2013	Jan. 03, 2014
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Nov-13	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'PIR	'
Entity Registrant Name	'PIER 1 IMPORTS INC/DE	'
Entity Central Index Key	'0000278130	'
Current Fiscal Year End Date	'--03-01	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	102,748,406

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Nov. 30, 2013	Nov. 24, 2012	Nov. 30, 2013	Nov. 24, 2012
Net sales	$465,462	$424,527	$1,255,957	$1,153,260
Cost of sales	263,232	238,268	724,830	665,179
Gross profit	202,230	186,259	531,127	488,081
Selling, general and administrative expenses	149,217	139,244	397,296	367,596
Depreciation and amortization	9,919	8,192	28,461	21,936
Operating income	43,094	38,823	105,370	98,549
Nonoperating expenses and (income):	'	'	'	'
Interest, investment income and other	-592	-298	-1,216	-2,169
Interest expense (income)	528	664	1,846	-629
Nonoperating Income (Expense)	-64	366	630	-2,798
Income before income taxes	43,158	38,457	104,740	101,347
Income tax provision	16,400	14,772	39,801	33,607
Net income	$26,758	$23,685	$64,939	$67,740
Earnings per share:	'	'	'	'
Basic	$0.26	$0.22	$0.62	$0.64
Diluted	$0.26	$0.22	$0.61	$0.62
Dividends declared per share:	$0.05	$0.04	$0.15	$0.12
Average shares outstanding during period:	'	'	'	'
Basic	103,319	105,419	105,018	106,601
Diluted	104,716	107,308	106,942	108,502

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Nov. 30, 2013	Nov. 24, 2012	Nov. 30, 2013	Nov. 24, 2012
Net income	$26,758	$23,685	$64,939	$67,740
Other comprehensive income (loss):	'	'	'	'
Foreign currency translation adjustments	-361	-21	-1,448	274
Pension adjustments	464	494	1,393	985
Other comprehensive income (loss), net of tax	103	473	-55	1,259
Comprehensive income	$26,861	$24,158	$64,884	$68,999

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Nov. 30, 2013	Mar. 02, 2013	Nov. 24, 2012
In Thousands, unless otherwise specified
Current assets:	'	'	'
Cash and cash equivalents, including temporary investments of $120,222, $191,568 and $97,064, respectively	$128,205	$231,556	$120,788
Accounts receivable, net	36,557	22,309	34,979
Inventories	429,069	356,053	417,547
Prepaid expenses and other current assets	51,625	49,016	25,417
Total current assets	645,456	658,934	598,731
Properties, net of accumulated depreciation of $418,167, $483,067 and $476,403, respectively	176,816	150,615	136,736
Other noncurrent assets	50,043	47,666	71,963
Assets, Total	872,315	857,215	807,430
Current liabilities:	'	'	'
Accounts payable	105,143	58,701	73,923
Gift cards and other deferred revenue	55,490	51,740	47,800
Accrued income taxes payable	18,020	25,249	16,689
Other accrued liabilities	114,455	112,437	114,628
Total current liabilities	293,108	248,127	253,040
Long-term debt	9,500	9,500	9,500
Other noncurrent liabilities	70,717	62,457	60,440
Shareholders' equity:	'	'	'
Common stock, $0.001 par, 500,000,000 shares authorized, 125,232,000 issued	125	125	125
Paid-in capital	231,316	233,518	231,234
Retained earnings	623,512	574,206	517,732
Cumulative other comprehensive loss	-4,883	-4,828	-3,214
Less - 21,956,000, 18,906,000 and 18,861,000 common shares in treasury, at cost, respectively	-351,080	-265,890	-261,427
Stockholders' Equity Attributable to Parent, Total	498,990	537,131	484,450
Commitments and contingencies	'	'	'
Liabilities and Equity, Total	$872,315	$857,215	$807,430

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Nov. 30, 2013	Mar. 02, 2013	Nov. 24, 2012
In Thousands, except Share data, unless otherwise specified
Cash and cash equivalents, temporary investments	$120,222	$191,568	$97,064
Properties, accumulated depreciation	$418,167	$483,067	$476,403
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	21,956,000	18,906,000	18,861,000

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Nov. 30, 2013	Nov. 24, 2012
Cash flow from operating activities:	'	'
Net income	$64,939	$67,740
Adjustments to reconcile to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	33,598	27,537
Stock-based compensation expense	10,267	9,141
Deferred compensation	5,372	4,767
Amortization of deferred gains	-2,286	-6,198
Change in reserve for uncertain tax positions	860	-7,266
Other	-582	-1,495
Changes in cash from:	'	'
Inventories	-73,016	-95,065
Proprietary credit card receivables	-7,441	-7,653
Prepaid expenses and other assets	-14,829	-16,424
Accounts payable and accrued expenses	51,671	8,401
Accrued income taxes payable, net of payments	-7,391	-3,716
Net cash provided by (used in) operating activities	61,162	-20,231
Cash flow from investing activities:	'	'
Capital expenditures	-60,590	-57,741
Proceeds from disposition of properties	11,055	165
Proceeds from sale of restricted investments	507	1,238
Purchase of restricted investments	-2,566	-3,178
Net cash used in investing activities	-51,594	-59,516
Cash flow from financing activities:	'	'
Cash dividends	-15,633	-12,759
Purchases of treasury stock	-114,025	-89,747
Proceeds from stock options exercised, stock purchase plan and other, net	17,888	15,173
Debt issuance costs	-1,149	'
Net cash used in financing activities	-112,919	-87,333
Change in cash and cash equivalents	-103,351	-167,080
Cash and cash equivalents at beginning of period	231,556	287,868
Cash and cash equivalents at end of period	$128,205	$120,788

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	64,939	'	'	64,939	'	'
Other comprehensive income (loss)	-55	'	'	'	-55	'
Purchases of treasury stock	-114,025	'	'	'	'	-114,025
Purchases of treasury stock (in shares)	'	-5,176	'	'	'	'
Stock-based compensation (in shares)	'	704	'	'	'	'
Stock-based compensation	10,267	'	337	'	'	9,930
Exercise of stock options, stock purchase plan and other (in shares)	'	1,422	'	'	'	'
Exercise of stock options, stock purchase plan and other	16,366	'	-2,539	'	'	18,905
Cash dividends ($0.15 per share)	-15,633	'	'	-15,633	'	'
Balance at Nov. 30, 2013	$498,990	$125	$231,316	$623,512	($4,883)	($351,080)
Balance (in shares) at Nov. 30, 2013	'	103,276	'	'	'	'

Consolidated_Statements_of_Sha1

Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $)	9 Months Ended
	Nov. 30, 2013
Cash dividends, per share	$0.15

Earnings_per_share

Earnings per share	9 Months Ended
	Nov. 30, 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 13,000 and 7,000 stock options outstanding with exercise prices greater than the average market price of the Company’s common shares for the three and nine months ended November 30, 2013, respectively. There were 328,000 and 1,067,000 stock options outstanding with exercise prices greater than the average market price of the Company’s common shares for the three and nine months ended November 24, 2012, respectively. Earnings per share for the three and nine months ended November 30, 2013 and November 24, 2012 were calculated as follows (in thousands except per share amounts):
		Three Months Ended				Nine Months Ended
		November 30,		November 24,		November 30,		November 24,
		2013		2012		2013		2012
	Net income, basic and diluted	$	26,758	$	23,685	$	64,939	$	67,740
	Weighted average shares outstanding during period:
	Basic		103,319		105,419		105,018		106,601
	Effect of dilutive stock options		788		1,332		1,094		1,289
	Effect of dilutive restricted stock		609		557		830		612
	Diluted		104,716		107,308		106,942		108,502
	Earnings per share:
	Basic	$	0.26	$	0.22	$	0.62	$	0.64
	Diluted	$	0.26	$	0.22	$	0.61	$	0.62

Stockbased_compensation

Stock-based compensation	9 Months Ended
	Nov. 30, 2013
Stock-based compensation	'
	Note 2 – Stock-based compensation
	For the three and nine months ended November 30, 2013, the Company recorded stock-based compensation expense primarily related to restricted stock expense of $2,977,000 and $10,194,000, respectively. For the three and nine months ended November 24, 2012, the Company recorded stock-based compensation expense primarily related to restricted stock expense of $3,134,000 and $8,986,000, respectively. As of November 30, 2013, there was approximately $15,615,000 of total unrecognized compensation expense related to unvested restricted stock that may be recognized over a weighted average period of 1.9 years, if certain performance targets are achieved.

Defined_benefit_plans

Defined benefit plans	9 Months Ended
	Nov. 30, 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 nine months ended November 30, 2013 and November 24, 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				Nine Months Ended
		November 30,		November 24,		November 30,		November 24,
		2013		2012		2013		2012
	Components of net periodic benefits cost:
	Service cost	$	364	$	338	$	1,092	$	1,015
	Interest cost		192		184		574		557
	Amortization of unrecognized prior service costs		102		102		307		307
	Amortization of net actuarial loss		348		355		1,044		1,053
	Settlement		-		-		-		(488	)
	Net periodic benefit cost	$	1,006	$	979	$	3,017	$	2,444

Secured_credit_facility

Secured credit facility	9 Months Ended
	Nov. 30, 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 is secured by the Company’s merchandise inventory and credit card receivables. As of November 30, 2013, the Company had no cash borrowings and approximately $37,613,000 in letters of credit and bankers’ acceptances outstanding, and $312,387,000 remained available for cash borrowings.
	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 November 30, 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 pays 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	9 Months Ended
	Nov. 30, 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	9 Months Ended
	Nov. 30, 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)	9 Months Ended
	Nov. 30, 2013
Calculation of Earning Per Share	'
	Earnings per share for the three and nine months ended November 30, 2013 and November 24, 2012 were calculated as follows (in thousands except per share amounts):
		Three Months Ended				Nine Months Ended
		November 30,		November 24,		November 30,		November 24,
		2013		2012		2013		2012
	Net income, basic and diluted	$	26,758	$	23,685	$	64,939	$	67,740
	Weighted average shares outstanding during period:
	Basic		103,319		105,419		105,018		106,601
	Effect of dilutive stock options		788		1,332		1,094		1,289
	Effect of dilutive restricted stock		609		557		830		612
	Diluted		104,716		107,308		106,942		108,502
	Earnings per share:
	Basic	$	0.26	$	0.22	$	0.62	$	0.64
	Diluted	$	0.26	$	0.22	$	0.61	$	0.62

Defined_benefit_plans_Tables

Defined benefit plans (Tables)	9 Months Ended
	Nov. 30, 2013
Components of Net Periodic Benefit Cost	'
	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				Nine Months Ended
		November 30,		November 24,		November 30,		November 24,
		2013		2012		2013		2012
	Components of net periodic benefits cost:
	Service cost	$	364	$	338	$	1,092	$	1,015
	Interest cost		192		184		574		557
	Amortization of unrecognized prior service costs		102		102		307		307
	Amortization of net actuarial loss		348		355		1,044		1,053
	Settlement		-		-		-		(488	)
	Net periodic benefit cost	$	1,006	$	979	$	3,017	$	2,444

Earning_Per_Share_Additional_I

Earning Per Share - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Nov. 30, 2013	Nov. 24, 2012	Nov. 30, 2013	Nov. 24, 2012
Earnings Per Share Disclosure [Line Items]	'	'	'	'
Stock option outstanding excluded from computation of earnings per share	13,000	328,000	7,000	1,067,000

Calculation_of_Earnings_Per_Sh

Calculation of Earnings Per Share (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Nov. 30, 2013	Nov. 24, 2012	Nov. 30, 2013	Nov. 24, 2012
Earnings Per Share Disclosure [Line Items]	'	'	'	'
Net income, basic and diluted	$26,758	$23,685	$64,939	$67,740
Basic	103,319	105,419	105,018	106,601
Diluted	104,716	107,308	106,942	108,502
Basic	$0.26	$0.22	$0.62	$0.64
Diluted	$0.26	$0.22	$0.61	$0.62
Employee Stock Option	'	'	'	'
Earnings Per Share Disclosure [Line Items]	'	'	'	'
Effect of dilutive stock	788	1,332	1,094	1,289
Restricted Stock Awards	'	'	'	'
Earnings Per Share Disclosure [Line Items]	'	'	'	'
Effect of dilutive stock	609	557	830	612

Stock_Based_Compensation_Addit

Stock Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Nov. 30, 2013	Nov. 24, 2012	Nov. 30, 2013	Nov. 24, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Recorded stock-based compensation expense	$2,977,000	$3,134,000	$10,194,000	$8,986,000
Restricted Stock Awards	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total unrecognized compensation expense	$15,615,000	'	$15,615,000	'
Weighted average period for recognizing unrecognized compensation expense, in years	'	'	'1 year 10 months 24 days	'

Components_of_Net_Periodic_Ben

Components of Net Periodic Benefit Costs (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Nov. 30, 2013	Nov. 24, 2012	Nov. 30, 2013	Nov. 24, 2012
Components of net periodic benefits cost:	'	'	'	'
Service cost	$364	$338	$1,092	$1,015
Interest cost	192	184	574	557
Amortization of unrecognized prior service costs	102	102	307	307
Amortization of net actuarial loss	348	355	1,044	1,053
Settlement	'	'	'	-488
Net periodic benefit cost	$1,006	$979	$3,017	$2,444

Secured_Credit_Facility_Additi

Secured Credit Facility - Additional Information (Detail) (USD $)	9 Months Ended	1 Months Ended			9 Months Ended
	Nov. 30, 2013	Jun. 18, 2013	Jun. 18, 2013	Nov. 30, 2013	Nov. 30, 2013	Nov. 30, 2013	Nov. 30, 2013	Nov. 30, 2013	Nov. 30, 2013
	Secured credit facility	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	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	'	'	'	'	'	'	'	'	37,613,000
Remaining borrowing	'	'	'	312,387,000	'	'	'	'	'
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. 25, 2012
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