Buffalo Wild Wings 2010 Annual Report Download - page 54

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54
BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 26, 2010 and December 27, 2009
(Dollar amounts in thousands, except per-share amounts)
(9) Stockholders’ Equity
(a) Stock Options
We have 3.9 million shares of common stock reserved for issuance under the Equity Incentive Plan (Plan) for
employees, officers, and directors. The option price for shares issued under this plan is to be not less than the fair market
value on the date of grant with respect to incentive and nonqualified stock options. Incentive stock options become
exercisable in four equal installments from the date of the grant and have a contractual life of seven to ten years.
Nonqualified stock options issued pursuant to the Plan have varying vesting periods from immediately to four years and have
a contractual life of seven to ten years. Incentive stock options may be granted under this plan until May 15, 2018. We issue
new shares of common stock upon exercise of stock options. Option activity is summarized for the year ended December 26,
2010 as follows:
Number
of shares
Weighted
average
exercise price
Average
remaining
contractual
life (years)
Aggregate
Intrinsic Value
Outstanding, December 27, 2009
179,134
$ 19.00
4.3
$ 4,285
Granted
35,984
48.41
Exercised
(25,860)
8.74
Cancelled
(3,092)
28.04
Outstanding, December 26, 2010
186,166 $ 25.96
4.0
$ 3,663
Exercisable, December 26, 2010
122,551 20.12
3.3
3,075
The aggregate intrinsic value in the table above is before applicable income taxes, based on our closing stock price of
$44.97 as of the last business day of the year ended December 26, 2010, which would have been received by the optionees
had all options been exercised on that date. As of December 26, 2010, total unrecognized stock-based compensation expense
related to nonvested stock options was approximately $1,060, which is expected to be recognized over a weighted average
period of approximately 2.3 years. During 2010, 2009, and 2008, the total intrinsic value of stock options exercised was
$928, $450, and $1,567, respectively. During 2010, 2009, and 2008, the total fair value of options vested was $536, $369,
and $33, respectively. During 2010 and 2009, the weighted average grant date fair value of options granted was $23.82 and
$15.96, respectively.
The following table summarizes our stock options outstanding at December 26, 2010:
Options outstanding
Options exercisable
Range
Shares
Average
remaining
contractual
life (years)
Weighted
average
exercise
price
Shares
Weighted
average
exercise
price
$ 3.75 – 9.08
47,495
1.4
$ 6.20 47,495
$ 6.20
9.33 – 24.96
54,740
4.0
24.02 42,205
23.74
30.87 – 31.00
47,947
5.0
30.91 24,020
30.91
48.35 – 51.42
35,984
6.1
48.41 8,831
48.35
186,166
122,551
The Plan has 513,677 shares available for grant as of December 26, 2010.