Note 6 - Income Per Share

9 Months Ended

Oct. 01, 2016

Income

per Share

The Company uses the two-class method to compute basic and diluted

net income or loss per common share. In periods of net loss, no effect 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 net income per share (in thousands, except share and per share data):

	Thirteen weeks ended				Thirty-nine weeks ended
	October 1,		October 3,		October 1,		October 3,
	2016		2015		2016		2015

NUMERATOR:
Net income before allocation of earnings to participating securities	$	1,841	$	1,067	$	1,058	$	7,260
Less: Earnings allocated to participating securities		39		18		22		140
Net income after allocation of earnings to participating securities	$	1,802	$	1,049	$	1,036	$	7,120

DENOMINATOR:
Weighted average num ber of common shares outstanding - basic		15,518,115		16,670,358		15,471,759		16,834,968
Dilutive effect of share-based awards		172,889		220,364		178,384		236,623
Weighted average number of common shares outstanding - dilutive		15,691,004		16,890,722		15,650,143		17,071,591
Basic income per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	0.12	$	0.06	$	0.07	$	0.42
Diluted income per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	0.11	$	0.06	$	0.07	$	0.42

In calculating diluted income per share for the thirteen and thirty-nine week periods ended October 1, 2

016, options to purchase 302,628 and 253,374 shares of common stock, respectively, that were outstanding at the end of the period were not included in the computation of diluted income per share due to their anti-dilutive effect. For the thirteen and thirty-nine week periods ended October 3, 2015, the number of options to purchase common shares that were excluded from the calculation was 71,366 and 61,569 shares, respectively.