Build-A-Bear Workshop 2014 Annual Report Download - page 58

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(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:
The expense recorded related to options granted during fiscal 2014
and 2013 was determined using the Black-Scholes option pricing
model and the provisions of Sta 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 2014 were: (a) dividend yield of 0%;
(b) historical volatility of 65%; (c) risk-free interest rates ranging from
1.7% to 2.1%; and (d) an expected life ranging from 6 to 6.25 years. The
grant date fair value of options granted in 2014 was approximately
$0.6 million.
The assumptions used in the option pricing model during fiscal 2013
were: (a) dividend yield of 0%; (b) historical volatility of 65%; (c) risk-
free interest rate of 1.3%; and (d) an expected life of 6.25 years. The
grant date fair value of options granted in 2013 was approximately
$0.7 million. The expense recorded related to options granted during
fiscal 2012 was immaterial.
The total intrinsic value of options exercised in fiscal 2014 and fiscal
2013 was approximately $1.6 million and $0.4 million, respectively. 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 1,323,925 and 471,327 at the end of 2014 and 2013,
respectively.
(b) Restricted Stock
Recipients of time-based restricted stock awards have the right to
vote and receive dividends as to all unvested shares. 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:
Notes to Consolidated Financial Statements (continued)
Number of Shares
Weighted Average
Exercise Price
Weighted
Average Remaining
Contractual Term
Aggregate
Intrinsic Value
(in thousands)
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
Granted 195,512 6.56
Exercised 204,658 5.60
Forfeited 39,931 8.20
Cancelled or expired 41,150 9.10
Outstanding, December 28, 2013 1,065,012 8.72
Granted 104,064 9.59
Exercised 351,856 6.64
Forfeited 96,019 21.54
Canceled or expired 6,750 8.78
Outstanding, January 3, 2015 714,451 $ 8.14 5.3 $ 8,270
Options Exercisable As Of:
January 3, 2015 443,612 $ 8.55 5.0 $ 5,295
Number of
Shares
Weighted
Average
Grant Date
Fair Value
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
Granted 321,664 6.00
Vested 399,405 5.39
Forfeited 62,386 5.78
Outstanding, December 28, 2013 720,198 5.91
Granted 202,274 10.31
Vested 345,577 6.25
Forfeited 157,221 6.21
Outstanding, January 3, 2015 419,674 $7.64
46 BUILD-A-BEAR WORKSHOP, INC. 2014 ANNUAL REPORT