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Note 11 - Stock Incentive Plans | 12 Months Ended
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Dec. 30, 2017
Notes to Financial Statements |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
( 1 1 ) | Stock Incentive Plans
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 which the Company amended and restated in 2009 and 2014 (collectively, the Incentive Plans). On March 14, 2017, the Company ’s Board of Directors (the “Board”) adopted, subject to stockholder approval, the Build-A-Bear Workshop, Inc. 2017 Omnibus Incentive Plan (the “2017 Plan”). On May 11, 2017, at the Company’s 2017 Annual Meeting of Stockholders, the Company’s stockholders approved the 2017 Plan. The 2017 Plan, which is administered by the Compensation and Development Committee of the Board, permits the grant of stock options (including both incentive and non-qualified stock options), stock appreciation rights, restricted stock, cash and other stock-based awards, some of which may be performance-based pursuant to the terms of the 2017 Plan. The Board may amend, modify or terminate the 2017 Plan at any time, except as otherwise provided in the 2017 Plan. The 2017 Plan will terminate on March 14, 2027, unless earlier terminated by the Board. The number of shares of the Company’s common stock authorized for issuance under the 2017 Plan is 1,000,000, plus shares of stock subject to outstanding awards made under the Incentive Plans that on or after March 21, 2017 may be forfeited, expire or be settled for cash.
| (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 3, 2015 |  |  | 714,451 |  |  | $ | 8.14 |  |  |  |  |  |  |  |  |
Granted |  |  | 71,517 |  |  |  | 20.58 |  |  |  |  |  |  |  |  |
Exercised |  |  | (150,409 | ) |  |  | 6.07 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (19,003 | ) |  |  | 12.15 |  |  |  |  |  |  |  |  |
Canceled or expired |  |  | (41,705 | ) |  |  | 32.95 |  |  |  |  |  |  |  |  |
Outstanding, January 2, 2016 |  |  | 574,851 |  |  |  | 8.30 |  |  |  |  |  |  |  |  |
Granted |  |  | 213,156 |  |  |  | 13.68 |  |  |  |  |  |  |  |  |
Exercised |  |  | (30,223 | ) |  |  | 5.91 |  |  |  |  |  |  |  |  |
Forfeited |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |
Canceled or expired |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |
Outstanding, December 31, 2016 |  |  | 757,784 |  |  |  | 9.91 |  |  |  |  |  |  |  |  |
Granted |  |  | 72,051 |  |  |  | 8.85 |  |  |  |  |  |  |  |  |
Exercised |  |  | (1,269 | ) |  |  | 6.36 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (26,795 | ) |  |  | 13.45 |  |  |  |  |  |  |  |  |
Canceled or expired |  |  | (10,204 | ) |  |  | 12.51 |  |  |  |  |  |  |  |  |
Outstanding, December 30, 2017 |  |  | 791,567 |  |  | $ | 9.67 |  |  |  | 5.8 |  |  | $ | 1,228 |
Options Exercisable As Of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 30, 2017 |  |  | 569,361 |  |  | $ | 8.46 |  |  |  | 4.8 |  |  | $ | 1,203 |
The expense recorded related to options granted during fiscal 2017, 2016 and 2015 was determined using the Black-Scholes option pricing model and the provisions of 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 2017, 2016 and 2015 were:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Dividend yield |  |  | 0% |  |  |  |  | 0% |  |  |  |  |  | 0% |  |
Historical volatility |  |  | 47% |  |  |  | 52% | - | 55% |  |  |  | 51% | - | 58% |
Risk-free rate |  |  | 2% |  |  |  | 1.4% | - | 1.6% |  |  |  | 1.5% | - | 1.8% |
Expected life (in years) |  |  | 6 |  |  |  |  | 6 |  |  |  |  |  | 6 |  |
Weighted average grant date fair value |  |  | $4.18 |  |  |  |  | $7.13 |  |  |  |  |  | $11.20 |  |
The total grant date fair value of options exercised in fiscal 2017, 2016 and 2015 was approximately less than $0.1 million, $0.1 million, and $0.6 million, respectively. The total intrinsic value of options exercised in fiscal 2017, 2016 and 2015 was approximately less than $0.1 million, $0.2 million and $2.1 million, respectively. The Company generally issues new shares to satisfy option exercises. Shares available for future option, non-vested stock and restricted stock grants were 984,758 and 545,799 at the end of 2017 and 2016, respectively.
| (b) | Restricted Stock
The Company granted restricted stock awards that vest over a 1 to 3 -year period. Recipients of time-based restricted stock awards have the right to vote and receive dividends as to all unvested shares. Recipients of performance-based restricted stock awards have the right to vote and receive dividends upon satisfaction of the performance criteria and certain of these awards’ dividend rights are also subject to time-based vesting. The following table is a summary of the balance and activity for the Plans related to unvested time-based and performance-based restricted stock granted as compensation to employees and directors for the periods presented:
|  | Restricted Stock |  |  | Performance Shares |
|  |  |  |  |  | Weighted |  |  |  |  |  |  | Weighted |
|  |  |  |  |  | Average |  |  |  |  |  |  | Average |
|  | Number of |  |  | Grant Date |  |  | Number of |  |  | Grant Date |
|  | Shares |  |  | Fair Value |  |  | Shares |  |  | Fair Value |
Outstanding, January 3, 2015 |  |  | 419,674 |  |  | $ | 7.64 |  |  |  | - |  |  | $ | - |
Granted |  |  | 107,004 |  |  |  | 19.59 |  |  |  | 86,222 |  |  |  | 20.71 |
Vested |  |  | (205,137 | ) |  |  | 7.84 |  |  |  | - |  |  |  | - |
Forfeited |  |  | (44,988 | ) |  |  | 8.89 |  |  |  | (2,160 | ) |  |  | 20.80 |
Canceled |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding, January 2, 2016 |  |  | 276,553 |  |  |  | 11.93 |  |  |  | 84,062 |  |  |  | 20.70 |
Granted |  |  | 203,613 |  |  |  | 13.58 |  |  |  | 176,611 |  |  |  | 13.68 |
Vested |  |  | (152,548 | ) |  |  | 11.22 |  |  |  | (7,039 | ) |  |  | 20.56 |
Forfeited |  |  | (11,502 | ) |  |  | 13.45 |  |  |  | - |  |  |  | - |
Canceled |  |  | - |  |  |  | — |  |  |  | (12,493 | ) |  |  | 20.56 |
Outstanding, December 31, 2016 |  |  | 316,116 |  |  |  | 13.30 |  |  |  | 241,141 |  |  |  | 15.39 |
Granted |  |  | 258,060 |  |  |  | 9.18 |  |  |  | 83,897 |  |  |  | 8.85 |
Vested |  |  | (179,132 | ) |  |  | 12.20 |  |  |  | (6,472 | ) |  |  | 20.54 |
Forfeited |  |  | (33,505 | ) |  |  | 12.55 |  |  |  | (15,247 | ) |  |  | 14.28 |
Canceled |  |  | - |  |  |  | — |  |  |  | (13,704 | ) |  |  | 13.68 |
Outstanding, December 30, 2017 |  |  | 361,539 |  |  | $ | 10.97 |  |  |  | 289,615 |  |  | $ | 13.66 |
In 201 7, the Company awarded three -year performance-based restricted stock subject to the achievement of pre-established pre-tax income growth objectives for fiscal 2017, 2018 and 2019. These shares of performance-based restricted stock had a payout opportunity ranging from 25% to 200% of the target number of shares. The target number of shares awarded was 83,897 with a weighted average grant date fair value of $8.85 per share. Based on the Company’s pre-tax income results for fiscal 2017, the Company currently estimates the minimum number of shares that will be earned is approximately 12,580, assuming no forfeitures. The Company is currently unable to estimate the total number of these shares expected to be earned. In 2016, the Company awarded performance-based restricted stock subject to the achievement of pre-established pre-tax income objectives for fiscal 2016. These shares of performance-based restricted stock had a payout opportunity ranging from 50% to 200% of the target number of shares. The target number of shares awarded was 15,366 with a weighted average grant date fair value of $13.57 per share. Based on the Company’s pre-tax income results for fiscal 2016, none of these shares were earned. Additionally, the Company awarded three -year performance-based restricted stock subject to the achievement of pre-established cumulative total revenue goals for fiscal 2016, 2017 and 2018. These shares of three -year performance-based restricted stock also had a payout opportunity ranging from 50% to 200% of the target number of shares. The target number of shares awarded was 161,245 with a weighted average grant date fair value of $13.69 per share. The Company is currently unable to estimate the total number of these shares expected to be earned. In 2015, the Company awarded performance-based restricted stock subject to the achievement of pre-established pre-tax inc ome objectives for fiscal 2015. These shares of performance-based restricted stock had a payout opportunity ranging from 50% to 200% of the target number of shares. The target number of shares awarded was 36,222 with a weighted average grant date fair value of $20.58 per share. Based on the Company’s pre-tax income results for fiscal 2015, the number of shares earned was 22,458. Additionally, the Company awarded three -year performance-based restricted stock subject to the achievement of pre-established cumulative pre-tax income goals for fiscal 2015, 2016 and 2017. These shares of three -year performance-based restricted stock also had a payout opportunity ranging from 50% to 200% of the target number of shares. The target number of shares awarded was 50,000 with a weighted average grant date fair value of $20.80 per share. The Company does not expect these shares to be earned. The vesting date fair value of shares that vested in fiscal 2017, 2016 and 2015 was $2.3 million, $1.9 million and $4.0 million, respectively. The aggregate unearned compensation expense related to options and restricted stock was $3.5 million as of December 30, 2017 and is expected to be recognized over a weighted average period of 1.3 years.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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