Equity-Based Compensation (Tables)

3 Months Ended

Apr. 02, 2016

Effect of Recording Equity-Based Compensation

The effect of recording equity-based compensation for the three-month periods ended April 2, 2016 and April 4, 2015 was as follows:

	Three Months Ended
	April 2, 2016		April 4, 2015
	(In thousands)
Equity-based compensation by type of award:
Stock options	$	276	$	316
RSUs		634		340
Employee stock purchase plan		201		206
Total equity-based compensation	$	1,111	$	862

Option Activity and Changes

Option activity as of April 2, 2016 and changes during the three months ended April 2, 2016 were as follows:

	Shares			Weighted Average Exercise Price
Options outstanding at January 2, 2016		2,433,647		$	7.52
Options granted		8,750		$	4.40
Options cancelled and forfeited		(19,503	)	$	7.78
Options exercised		—		$	—
Options outstanding at April 2, 2016		2,422,894		$	7.51
Vested and expected to vest at April 2, 2016		2,320,851		$	7.57
Options exercisable at April 2, 2016		1,435,063		$	8.53

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
	April 2, 2016			April 4, 2015
Stock Options:
Weighted-average fair value of grants per share	$	1.50		$	2.60
Expected volatility		42.96	%		49.62	%
Risk free interest rate		1.04	%		1.00	%
Expected term of options (in years)		3.96			4.00
Dividend yield		None			None
Stock Purchase Rights:
Weighted-average fair value of grants per share	$	1.54		$	2.26
Expected volatility		39.33	%		44.05	%
Risk free interest rate		0.76	%		0.39	%
Expected term of purchase rights (in years)		1.93			1.22
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 January 2, 2016		553,584		$	6.16
Granted		578,966		$	3.98
Vested		(141,839	)	$	6.90
Cancelled and forfeited		(50,526	)	$	4.71
Non-vested RSUs at April 2, 2016		940,185		$	4.78

Weighted Average Fair Value of Market Condition Based RSUs

Intevac estimated the weighted-average fair value of market condition-based RSUs using the following weighted-average assumptions:

	Three Months Ended
	April 2, 2016
Weighted-average fair value of grants per share	$	2.46
Expected volatility		47.65	%
Risk free interest rate		1.35	%
Expected term (in years)		4.79
Dividend yield		None