Build-A-Bear Workshop 2011 Annual Report Download - page 65

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BUILD-A-BEAR WORKSHOP, INC. 2011 FORM 10-K
Notes to Consolidated Financial Statements (continued)
(a) Stock Options
The following table is a summary of the balance and activity for the Plans related to stock options for the periods presented:
Number of
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual Term
Aggregate
Intrinsic
Value
(in thousands)
Outstanding, January 3, 2009 354,772 $15.98
Granted 480,967 5.04
Forfeited 30,392 14.25
Outstanding, January 2, 2010 805,347 9.51
Granted 391,228 6.63
Exercised 28,484 0.87
Forfeited 42,868 9.32
Outstanding, January 1, 2011 1,125,223 8.73
Granted 305,727 6.22
Exercised 55,501 5.13
Forfeited 164,633 7.04
Outstanding, December 31, 2011 1,210,816 $ 8.49 7.1 $2,480
Options Exercisable As Of:
December 31, 2011 480,814 $ 12.18 5.1 $ 729
The expense recorded related to options granted during
fiscal 2011 was determined using the Black-Scholes option
pricing model and the provisions of Staff Accounting Bulletin
(SAB) 107 and 110, which allow the use of a simplified
method to estimate the expected term of “plain vanilla”
options. The assumptions used in the option pricing model
during fiscal 2011 were: (a) dividend yield of 0%;
(b) volatility of 65%; (c) risk-free interest rates ranging from
1.2% to 2.5%; and (d) an expected life of 6.25 years. The
grant date fair value of options granted in 2011 was
approximately $1.2 million.
The assumptions used in the option pricing model during
fiscal 2010 were: (a) dividend yield of 0%; (b) volatility of
65%; (c) risk-free interest rates ranging from 2.1% to 3.4%;
and (d) an expected life of 6.25 years. The assumptions used
in the option pricing model during fiscal 2009 were:
(a) dividend yield of 0%; (b) volatility of 65%; (c) risk-free
interest rates ranging from 2.3% to 3.1%; and (d) an
expected life of 6.25 years.
The total intrinsic value of options exercised in
fiscal 2011 and fiscal 2010 was approximately $0.1 and
$0.2 million. No options were exercised in 2009. The
Company generally issues new shares to satisfy
option exercises.
Shares available for future option, non-vested stock and
restricted stock grants were 1,104,894 and 1,877,010 at the
end of 2011 and 2010, respectively.
(b) Restricted Stock
The following table is a summary of the balance and
activity for the Plans related to unvested restricted stock
granted as compensation to employees and directors for the
periods presented:
Number of
Shares
Weighted
Average
Grant Date
Fair Value
Outstanding, January 3, 2009 713,756 $13.82
Granted 1,144,343 4.72
Vested 294,545 12.47
Forfeited 113,246 9.72
Outstanding, January 2, 2010 1,450,308 7.23
Granted 486,302 6.56
Vested 376,142 10.05
Forfeited 92,095 6.73
Outstanding, January 1, 2011 1,468,373 6.32
Granted 532,791 6.46
Vested 394,766 8.52
Forfeited 168,267 5.68
Outstanding, December 31, 2011 1,438,131 $ 5.85
The vesting date fair value of shares that vested in 2011,
2010 and 2009 was $2.5 million, $2.6 million and
$1.6 million, respectively.
During 2011, 455,640 shares of non-vested restricted
stock were granted to employees of the Company. The shares
vest over a period of four years from the grant date at a grant
date fair values ranging from $5.31 to $7.94. Various
57