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Stock-Based Compensation
 3 Months Ended
Apr. 02, 2021
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The Company maintains certain stock-based compensation plans that were approved by the Company’s stockholders and are administered by the Board of Directors or the Compensation and Organization Committee of the Board. The stock-based compensation plans provide for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), stock appreciation rights and stock bonuses to employees, non-employee directors, consultants, and service providers.
The components and classification of stock-based compensation expense were as follows (in thousands):
 Three Months Ended
 April 2,
2021		April 3,
2020
Stock options$— $13 
RSUs4,704 1,725 
Total stock-based compensation expense$4,704 $1,738 
Cost of sales$1,114 $454 
Selling, general and administrative3,355 1,136 
Research, development and engineering235 148 
Total stock-based compensation expense$4,704 $1,738 
Stock Options
The following table summarizes the Company’s stock option activity for the three month period ended April 2, 2021:
Number of
Stock
Options		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Life
(In Years)		Aggregate
Intrinsic
Value
(In Millions)
Outstanding at December 31, 2020281,873 $36.05 
Exercised(4,229)27.32 
Outstanding and exercisable at April 2, 2021277,644 $36.18 4.5$15.4 
Restricted Stock Units
During the three months ended April 2, 2021, the Company awarded grants of either time-based RSUs or a mix of time-based RSUs and performance-based RSUs (“PRSUs”) to certain members of its Board of Directors and management. Newly appointed members to the Board of Directors received a pro-rated portion of the their annual equity retainer in the form of time-based RSUs that vest in accordance with the regularly scheduled vesting schedule applicable to existing members of the Board of Directors. All other time-based RSUs granted during three months ended April 2, 2021 vest ratably, subject to the recipient’s continuous service to the Company over a period of three years from the grant date. For the Company’s PRSUs, in addition to service conditions, the ultimate number of shares to be earned depends on the achievement of market-based conditions. The market-based conditions are based on the Company’s achievement of a relative total shareholder return (“TSR”) performance requirement, on a percentile basis, compared to a defined group of peer companies over three year performance periods.
The Company uses a Monte Carlo simulation model to determine the grant-date fair value of awards with TSR-based performance conditions. The grant-date fair value of all other RSUs is equal to the closing market price of Integer common stock on the date of grant.
(7.)     STOCK-BASED COMPENSATION (Continued)
The weighted average fair value and assumptions used to value the TSR portion of the PRSUs granted are as follows:
 Three Months Ended
 April 2,
2021		April 3,
2020
Weighted average fair value$85.16 $107.42 
Risk-free interest rate0.19 %1.53 %
Expected volatility41 %30 %
Expected life (in years)3.02.9
Expected dividend yield— %— %
The valuation of the TSR portion of the PRSUs granted during 2021 and 2020 also reflects a weighted average illiquidity discount of 8.19% and 8.00%, respectively, related to the six-month period that recipients are restricted from selling, transferring, pledging or assigning the underlying shares, in the event of vesting.
The following table summarizes time-vested RSU activity for the three month period ended April 2, 2021:
Time-Vested
Activity		Weighted
Average
Grant Date Fair Value
Nonvested at December 31, 2020207,923 $75.38 
Granted146,247 79.09 
Vested(59,143)63.94 
Forfeited(2,327)80.24 
Nonvested at April 2, 2021292,700 $79.51 
The following table summarizes PRSU activity for the three month period ended April 2, 2021:
Performance-
Vested
Activity		Weighted
Average
Grant Date Fair Value
Nonvested at December 31, 2020219,391 $72.33 
Granted92,345 85.16 
Vested(38,882)37.75 
Forfeited(65,941)49.00 
Nonvested at April 2, 2021206,913 $91.98