Build-A-Bear Workshop 2012 Annual Report Download - page 67

BUILD-A-BEAR WORKSHOP, INC. 2012 FORM 10-K
Notes to Consolidated Financial Statements (continued)
During 2012, 278,308 shares of restricted stock were
granted to employees of the Company. The shares vest over a
period of four years from the grant date at grant date fair
values ranging from $3.59 to $8.32. Various members of the
Company’s board of directors were granted an additional
87,962 shares in the aggregate of restricted stock as
compensation for services. The shares were issued subject to
a restriction of continued service on the board of directors and
all restrictions lapse six months from the grant date or upon a
director’s retirement upon the completion of his or her term,
if earlier.
During 2011, 455,640 shares of restricted stock were
granted to employees of the Company. The shares vest over a
period of four years from the grant date at grant date fair
values ranging from $5.31 to $7.94. Various members of the
Company’s board of directors were granted an additional
77,151 shares in the aggregate of restricted stock as
compensation for services. The shares were issued subject to
a restriction of continued service on the board of directors and
all restrictions lapse one year from the grant date or upon a
director’s retirement upon the completion of his or her term,
if earlier.
During 2010, 402,656 shares of restricted stock were
granted to employees of the Company. The shares vest over a
period of four years from the grant date at grant date fair
values ranging from $5.94 to $9.64. Various members of the
Company’s board of directors were granted an additional
83,646 shares in the aggregate of restricted stock as
compensation for services. The shares were issued subject to
a restriction of continued service on the board of directors and
all restrictions lapse one year from the grant date or upon a
director’s retirement upon the completion of his or her term,
if earlier.
The aggregate unearned compensation expense related
to options and restricted stock was $4.3 million as of
December 29, 2012. Based on the vesting provisions of the
underlying equity instruments, future compensation expense
related to previously issued options and restricted stock at
December 29, 2012 will be as follows (in thousands):
2013 $ 901
2014 1,992
2015 1,117
2016 328
$ 4,338
The outstanding non-vested restricted stock is included in
the number of outstanding shares on the face of the
consolidated balance sheets, but is treated as outstanding
stock options for accounting purposes. The shares of
non-vested restricted stock, accounted for as options, are
included in the calculation of diluted earnings per share using
the two-class method, with the proceeds equal to the sum of
unrecognized compensation cost.
(14) STOCKHOLDERS’ EQUITY
The following table summarizes the changes in outstanding
shares of common stock for fiscal 2010, 2011 and 2012:
Common
Stock
Shares as of January 2, 2010 20,447,343
Shares issued under employee stock plans, net of
shares withheld in lieu of tax withholding 318,045
Repurchase of shares (1,133,765)
Shares as of January 1, 2011 19,631,623
Shares issued under employee stock plans, net of
shares withheld in lieu of tax withholding 302,007
Repurchase of shares (2,528,360)
Shares as of December 31, 2011 17,405,270
Shares issued under employee stock plans, net of
shares withheld in lieu of tax withholding 29,612
Repurchase of shares (366,700)
Shares as of December 29, 2012 17,068,182
(15) RELATED-PARTY TRANSACTIONS
The Company bought fixtures for new stores and furniture for
the corporate offices from a related party. The total payments
to this related party for fixtures and furniture amounted to
$0.9 million, $0.5 million and $0.6 million, in 2012, 2011
and 2010, respectively. The total amount due to this related
party as of December 29, 2012 and December 31, 2011
was $-0-.
The Company collected $2.2 million, $2.4 million and
$2.8 million in 2012, 2011 and 2010, respectively, from its
guests on behalf of charitable foundations controlled by
certain executive officers of the Company. Substantially all of
the contributions are collected from guests at the point of sale
via pin pad prompts or as a portion of the proceeds of
specifically identified products. The foundations support a
variety of children’s causes, domestic animal shelters, disaster
relief and other concerns. The foundations distribute grants to
qualifying charitable organizations based upon decisions of
their respective contribution committees most of whose
members are employees of the Company. The total due to the
charitable foundations as of December 29, 2012 and
December 31, 2011 was $0.7 million and $0.5 million,
respectively.
(16) MAJOR VENDORS
Three vendors, each of whose primary manufacturing facilities
are located in China, accounted for approximately 80%, 81%
and 73% of inventory purchases in 2012, 2011 and 2010,
respectively.
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