Build-A-Bear Workshop 2011 Annual Report Download - page 64

BUILD-A-BEAR WORKSHOP, INC. 2011 FORM 10-K
Notes to Consolidated Financial Statements (continued)
Future minimum lease payments at December 31, 2011,
were as follows (in thousands):
2012 $ 45,755
2013 39,051
2014 34,159
2015 28,900
2016 21,253
Subsequent to 2016 36,231
$205,349
(b) Litigation
In the normal course of business, the Company is subject
to certain claims or lawsuits. Management is not aware of any
claims or lawsuits that will have a material adverse effect on
the consolidated financial position or results of operations of
the Company.
(12) EARNINGS (LOSS) PER SHARE
The Company uses the two-class method to compute basic and diluted earnings per common share. In periods of net loss, no
effect is given to the Company’s participating securities as they do not contractually participate in the losses of the Company. The
following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per
share data):
2011 2010 2009
NUMERATOR:
Net (loss) earnings before allocation of earnings to participating securities $ (17,062) $ 104 $ (12,473)
Less: Earnings allocated to participating securities —7—
Net (loss) earnings after allocation of earnings to participating securities $ (17,062) $ 97 $ (12,473)
DENOMINATOR:
Weighted average number of common shares outstanding — basic 17,371,315 18,601,465 18,874,352
Dilutive effect of share-based awards: —51,547 —
Weighted average number of common shares outstanding — dilutive 17,371,315 18,653,012 18,874,352
Basic (loss) earnings per common share attributable to Build-A-Bear Workshop,
Inc, stockholders: $ (0.98) $ 0.01 $ (0.66)
Diluted (loss) earnings per common share attributable to Build-A-Bear Workshop,
Inc, stockholders $ (0.98) $ 0.01 $ (0.66)
In calculating diluted earnings per share for fiscal 2011, 2010 and 2009, options to purchase 1,210,816, 627,456 and
805,347, respectively, shares of common stock were outstanding at the end of the period, but were not included in the
computation of diluted earnings per share due to their anti-dilutive effect under provisions of ASC 260-10.
Due to the net loss in fiscal 2011 and fiscal 2009, the denominator for diluted earnings per common share is the same as
the denominator for basic earnings per common share for those periods because the inclusion of stock options and unvested
restricted shares would be anti-dilutive.
(13) STOCK INCENTIVE PLANS
On April 3, 2000, the Company adopted the 2000 Stock
Option Plan (the Plan). In 2003, the Company adopted the
Build-A-Bear Workshop, Inc. 2002 Stock Incentive Plan, in
2004, the Company adopted the Build-A-Bear Workshop, Inc.
2004 Stock Incentive Plan and in 2009, the Company
amended and restated the Build-A-Bear Workshop, Inc.
2004 Stock Incentive Plan (collectively, the Plans).
Under the Plans, as amended, from January 3, 2009, up
to 3,230,000 shares of common stock were reserved and
may be granted to employees and nonemployees of the
Company. The Plan allows for the grant of incentive stock
options, nonqualified stock options, stock appreciation rights
(SAR) and restricted stock. Options granted under the Plan
expire no later than 10 years from the date of the grant. The
exercise price of each incentive stock option shall not be less
than 100% of the fair value of the stock subject to the option
on the date the option is granted. The exercise price of all
options shall be the fair market value on the date of the grant.
The vesting provision of individual options is at the discretion
of the compensation committee of the board of directors and
generally ranges from one to four years. Each share of stock
awarded pursuant to an option or subject to the exercised
portion of a SAR reduces the number of shares available by
one share. Each share of stock awarded pursuant to any other
stock-based awards, including restricted stock grants, reduces
the number of shares available by 1.27 shares.
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