Build-A-Bear Workshop 2014 Annual Report Download - page 57

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(11) Earnings Per Share
The Company uses the two-class method to compute basic and diluted earnings per common share. In periods of net loss, no eect 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):
In calculating diluted earnings per share for fiscal 2014, 2013 and 2012, options to purchase 44,144; 1,065,012 and 1,155,239, 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 eect under provisions of ASC 260-10.
Due to the net loss in fiscal 2013 and 2012, 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.
(12) Stock Incentive Plans
In 2003, the Company adopted the Build-A-Bear Workshop, Inc. 2002 Stock Incentive Plan (the 2002 Plan). In 2004, the Company adopted the
Build-A-Bear Workshop, Inc. 2004 Stock Incentive Plan (the 2004 Plan) which the Company amended and restated in 2009 and 2014 (collectively,
the Plans).
Under the Plans, as amended, from December 29, 2013, up to 1,475,000 shares of common stock, in addition to shares of stock subject to awards
outstanding under the 2002 Plan and the 2004 Plan that may lapse, terminate, be forfeited or otherwise expire were reserved and may be
granted to employees and nonemployees of the Company. The Plans allow for the grant of incentive stock options, nonqualified stock options,
stock appreciation rights and restricted stock. Options granted under the Plans 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 awards is at
the discretion of the compensation committee of the board of directors and generally ranges from one to four years.
Notes to Consolidated Financial Statements (continued)
2014 2013 2012
NUMERATOR:
Net income (loss) before allocation of earnings to participating securities $14,362 $(2,112)$(49,295)
Less: Earnings allocated to participating securities 439 - -
Net income (loss) 13,923 (2,112)(49,295)
DENOMINATOR:
Weighted average number of common shares outstanding - basic 16,908,001 16,465,138 16,331,672
Dilutive eect of share-based awards: 225,810 - -
Weighted average number of common shares outstanding - dilutive 17,133,811 16,465,138 16,331,672
Basic income (loss) per common share attributable to Build-A-Bear Workshop, Inc., stockholders $0.82 $(0.13) $ (3.02)
Diluted income (loss) per common share attributable to Build-A-Bear Workshop, Inc., stockholders $0.81 $(0.13) $ (3.02)
BUILD-A-BEAR WORKSHOP, INC. 2014 ANNUAL REPORT 45