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Note 12 - Stock Incentive Plans

12 Months Ended

Jan. 03, 2015

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

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

(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.

(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, 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

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

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 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 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:

			Weighted
			Average
	Number of		Grant Date
	Shares		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

The vesting date fair value of shares that vested in fiscal 2014, 2013 and 2012 was $3.7 million, $2.2 million and $4.6 million, respectively. The aggregate unearned compensation expense related to options and restricted stock was $3.0 million as of January 3, 2015 and is expected to be recognized over a weighted average period of 1.4 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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