Buffalo Wild Wings 2007 Annual Report Download - page 48

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48
BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 30, 2007 and December 31, 2006
(Dollar amounts in thousands, except per-share amounts)
Number
of shares
Weighted
average
exercise price
Average
remaining
contractual
life (years)
Aggregate Intrinsic
Value
Outstanding, December 31, 2006 420,986 $ 4.23
Granted — —
Exercised (241,434) 3.15
Cancelled (2,949) 9.63
Outstanding, December 30, 2007 176,603 $ 5.61 3.9 $ 3,096
Exercisable, December 30, 2007 172,086 5.37 3.9 3,058
The aggregate intrinsic value in the table above is before applicable income taxes, based on our closing stock price of
$23.14 as of December 30, 2007, which would have been received by the optionees had all options been exercised on that
date. As of December 30, 2007, total unrecognized stock-based compensation expense related to nonvested stock options was
approximately $16, which is expected to be recognized over a weighted average period of approximately seven months.
During 2007, 2006, and 2005, the total intrinsic value of stock options exercised was $5,978, $2,707, and $3,226,
respectively. During 2007 and 2006, the total fair value of options vested was $201 and $587, respectively.
The following table summarizes our stock options outstanding at December 30, 2007:
Options outstanding
Options exercisable
Range
Shares
Average
remaining
contractual
life (years)
Weighted
average
exercise
price
Shares
Weighted
average
exercise
price
$ 1.68 – 3.75 82,534 2.66 $ 2.88 82,534 $ 2.88
5.63 – 6.38 51,171 4.49 5.76 51,171 5.76
9.08 – 14.13 40,698 5.69 10.31 37,331 9.99
17.41 2,200 7.01 17.41 1,050 17.41
176,603 3.94 5.61 172,086 5.37
The plan has 693,811 shares available for grant as of December 30, 2007.
(b) Restricted Stock
Restricted stock units are granted annually at the discretion of the Board under the plan. These units are subject to
annual vesting upon achieving performance targets established by the Board of Directors. We record compensation expense
for the restricted stock units if vesting, based on the achievement of performance targets, is probable. The restricted stock
units may vest one-third annually over a ten-year period as determined by meeting performance targets. However, the second
third of the restricted stock units is not subject to vesting until the first one-third has vested and the final one-third is not
subject to vesting until the first two-thirds of the award has vested. We issue new shares of common stock upon the
disbursement of restricted stock units. Restricted stock activity is summarized for fiscal year 2007:
Number
of shares
Weighted
average
grant date
fair value
Outstanding, December 31, 2006 168,212 $ 17.10
Granted 166,950 24.88
Vested (149,740) 20.96
Cancelled (44,730) 21.20
Outstanding, December 30, 2007 140,692 20.92