Equity-Based Compensation (Tables)

3 Months Ended

Apr. 01, 2017

Effect of Recording Equity-Based Compensation

The effect of recording equity-based compensation for the three-month periods ended April 1, 2017 and April 2, 2016 was as follows:

	Three Months Ended
	April 1, 2017		April 2, 2016
	(In thousands)
Equity-based compensation by type of award:
Stock options	$	255	$	276
RSUs		718		634
Employee stock purchase plan		104		201
Total equity-based compensation	$	1,077	$	1,111

Option Activity and Changes

Option activity as of April 1, 2017 and changes during the three months ended April 1, 2017 were as follows:

	Shares			Weighted Average Exercise Price
Options outstanding at December 31, 2016		2,740,364		$	7.00
Options granted		30,625		$	7.89
Options cancelled and forfeited		(21,405	)	$	6.60
Options exercised		(57,657	)	$	6.03
Options outstanding at April 1, 2017		2,691,927		$	7.03
Options exercisable at April 1, 2017		1,783,825		$	7.78

Employee Stock Options 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 1, 2017			April 2, 2016
Stock Options:
Weighted-average fair value of grants per share	$	4.56		$	1.50
Expected volatility		41.78	%		42.96	%
Risk free interest rate		1.38	%		1.04	%
Expected term of options (in years)		2.54			3.96
Dividend yield		None			None
Stock Purchase Rights:
Weighted-average fair value of grants per share	$	2.74		$	1.54
Expected volatility		40.66	%		39.33	%
Risk free interest rate		1.14	%		0.76	%
Expected term of purchase rights (in years)		0.74			1.93
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, 2016		949,455		$	4.64
Granted		142,749		$	9.67
Vested		(325,796	)	$	4.21
Cancelled and forfeited		(2,910	)	$	5.77
Non-vested RSUs at April 1, 2017		763,498		$	5.75

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