Build-A-Bear Workshop 2012 Annual Report Download - page 66

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BUILD-A-BEAR WORKSHOP, INC. 2012 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 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
Granted 228 8.32
Exercised ——
Forfeited 55,805 7.79
Outstanding, December 29, 2012 1,155,239 $ 8.53 6.0 $—
Options Exercisable As Of:
December 29, 2012 704,937 $10.06 5.1 $—
The expense recorded related to options granted during
fiscal 2012 was immaterial. 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 2012.
The Company generally issues new shares to satisfy
option exercises.
Shares available for future option, non-vested stock and
restricted stock grants were 608,864 and 1,104,894 at the
end of 2012 and 2011, 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 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
Granted 366,270 4.97
Vested 874,852 5.53
Forfeited 69,224 6.03
Outstanding, December 29, 2012 860,325 $ 5.78
The vesting date fair value of shares that vested in 2012,
2011 and 2010 was $4.6 million, $2.5 million and
$2.6 million, respectively.
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