Equity-Based Compensation (Tables)

9 Months Ended

Sep. 29, 2018

Effect of Recording Equity-Based Compensation

The effect of recording equity-based compensation for the three and nine months ended September 29, 2018 and September 30, 2017 was as follows:

	Three Months Ended				Nine Months Ended
	September 29, 2018		September 30, 2017		September 29, 2018		September 30, 2017
	(In thousands)
Equity-based compensation by type of award:
Stock options	$	213	$	350	$	563	$	808
RSUs		309		731		945		1,943
ESPP awards		330		67		946		261
Total equity-based compensation	$	852	$	1,148	$	2,454	$	3,012

Summary of Option Activity

A summary of the options activity is as follows:

	Shares			Weighted-Average Exercise Price
Options outstanding at December 30, 2017		2,925,861		$	7.62
Options granted		421,125		$	5.13
Options cancelled and forfeited		(936,428	)	$	9.31
Options exercised		(321,190	)	$	4.87
Options outstanding at September 29, 2018		2,089,368		$	6.78
Options exercisable at September 29, 2018		1,331,565		$	6.60

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						Nine Months Ended
	September 29, 2018			September 30, 2017			September 29, 2018			September 30, 2017
Stock Options:
Weighted-average fair value of grants per share	$	1.81		$	3.89		$	1.98		$	4.54
Expected volatility		44.10	%		42.10	%		43.83	%		40.54	%
Risk-free interest rate		2.87	%		1.84	%		2.58	%		1.77	%
Expected term of options (in years)		3.90			4.08			4.41			4.10
Dividend yield		None			None			None			None
	Three Months Ended						Nine Months Ended
	September 29, 2018			September 30, 2017			September 29, 2018			September 30, 2017
Stock Purchase Rights:
Weighted-average fair value of grants per share	$	1.87		$	2.76		$	2.24		$	2.75
Expected volatility		50.64	%		48.59	%		47.64	%		43.51	%
Risk-free interest rate		2.58	%		1.36	%		2.01	%		1.22	%
Expected term of purchase rights (in years)		1.58			0.50			1.33			0.65
Dividend yield		None			None			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 30, 2017		769,451		$	7.84
Granted		217,917		$	5.07
Vested		(425,956	)	$	7.15
Cancelled and forfeited		(98,737	)	$	8.74
Non-vested RSUs at September 29, 2018		462,675		$	6.98