Equity-Based Compensation (Tables)

3 Months Ended

Mar. 29, 2014

Effect of Recording Equity-Based Compensation

The effect of recording equity-based compensation for the three-month periods ended March 29, 2014 and March 30, 2013 was as follows:

	Three Months Ended
	March 29, 2014		March 30, 2013
	(In thousands)
Equity-based compensation by type of award:
Stock options	$	241	$	173
RSUs		292		76
Employee stock purchase plan		164		314
Total equity-based compensation	$	697	$	563
Tax benefit recognized	$	3	$	5

Option Activity and Changes

Option activity as of March 29, 2014 and changes during the three months ended March 29, 2014 were as follows:

	Shares			Weighted Average Exercise Price
Options outstanding at December 31, 2013		2,637,969		$	8.53
Options granted		48,000		$	8.49
Options cancelled and forfeited		(42,687	)	$	7.94
Options exercised		(41,836	)	$	4.58
Options outstanding at March 29, 2014		2,601,446		$	8.61
Vested and expected to vest at March 29, 2014		2,418,134		$	8.78
Options exercisable at March 29, 2014		1,381,138		$	10.45

Weighted-Average Fair Value of Stock Options and Employee Stock Purchase Rights using Weighted-Average Assumptions

Intevac estimated the weighted-average fair value of stock options and employee stock purchase rights using the following weighted-average assumptions:

	Three Months Ended
	March 29, 2014			March 30, 2013
Stock Options:
Weighted-average fair value of grants per share	$	4.14		$	1.97
Expected volatility		54.71	%		55.57	%
Risk free interest rate		1.87	%		0.52	%
Expected term of options (in years)		5.2			3.9
Dividend yield		None			None
Stock Purchase Rights:
Weighted-average fair value of grants per share	$	2.15		$	1.60
Expected volatility		43.40			52.42	%
Risk free interest rate		0.11	%		0.26	%
Expected term of purchase rights (in years)		0.74			1.85
Dividend yield		None			None

Summary of Restricted Stock Units Activity

A summary of the RSU activity is as follows:

	Shares			Weighted Average Grant Date Fair Value
Non-vested RSUs at December 31, 2013		237,859		$	5.34
Granted		29,000		$	7.97
Vested		(3,189	)	$	7.52
Cancelled and forfeited		(7,833	)	$	5.70
Non-vested RSUs at March 29, 2014		255,837		$	5.60