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Note 12 - Stock Incentive Plans

12 Months Ended

Dec. 28, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

(12)

Stock Incentive Plans

On April 3, 2000, the Company adopted the 2000 Stock Option Plan. In 2003, the Company adopted the Build-A-Bear Workshop, Inc. 2002 Stock Incentive Plan, in 2004, the Company adopted the Build-A-Bear Workshop, Inc. 2004 Stock Incentive Plan and in 2009, the Company amended and restated the Build-A-Bear Workshop, Inc. 2004 Stock Incentive Plan (collectively, the Plans).

Under the Plans, as amended, from January 3, 2009, up to 3,230,000 shares of common stock 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 (SAR) and restricted stock. Options granted under the Plans expire 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. Each share of stock awarded pursuant to an option or subject to the exercised portion of a SAR reduces the number of shares available by one share. Each share of stock awarded pursuant to any other stock-based awards, including restricted stock grants, reduces the number of shares available by 1.27 shares.

(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:

					Weighted		Aggregate
			Weighted		Average		Intrinsic
	Number of		Average		Remaining		Value
	Shares		Exercise Price		Contractual Term		(in thousands)
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
Granted		195,512		6.56
Exercised		204,658		5.60
Forfeited		39,931		8.20
Canceled or expired		41,150		9.10
Outstanding, December 28, 2013		1,065,012	$	8.72		5.9	$	1,339

Options Exercisable As Of:
December 28, 2013		678,794	$	10.00		4.7	$	938

The expense recorded related to options granted during fiscal 2013 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 2013 were: (a) dividend yield of 0%; (b) historical volatility of 65%; (c) risk-free interest rates 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 assumptions used in the option pricing model during fiscal 2011 were: (a) dividend yield of 0%; (b) historical 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 total intrinsic value of options exercised in fiscal 2013 and fiscal 2011 was approximately $0.4 million and $0.1 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 471,327 and 608,864 at the end of 2013 and 2012, 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:

			Weighted
			Average
	Number of		Grant Date
	Shares		Fair Value
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
Granted		321,664		6.00
Vested		399,405		5.39
Forfeited		62,386		5.78
Outstanding, December 28, 2013		720,198	$	5.91

The vesting date fair value of shares that vested in fiscal 2013, 2012 and 2011was $2.2 million, $4.6 million and $2.5 million, respectively. The aggregate unearned compensation expense related to options and restricted stock was $3.3 million as of December 28, 2013 and is expected to be recognized over a weighted average period of 1.1 years

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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