Company: COHU
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001437749-25-004612
Chunk: 123

Company: COHU INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1
Chunk 123
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			$
			57.39

			(7
			)
			 
			$
			42.52

			(77
			)
			 
			$
			15.94

			Outstanding, end of year

			539

			$
			39.64

			408

			$
			45.65

			403

			$
			28.64

Share-based Compensation – We estimate the fair value of our employee stock purchase plan using the Black-Scholes valuation model. The assumptions for the Black-Scholes model include the risk-free rate of interest, expected dividend yield, expected volatility, and the expected life of the award. The estimated fair value of PSUs is determined on the grant date using the Monte Carlo simulation valuation model. The Monte Carlo simulation model incorporates assumptions for the risk-free interest rate, Cohu and the selected peer group price volatility, the correlation between Cohu and the selected index, and dividend yields. Share-based compensation expense related to restricted stock unit awards is calculated based on the market price of our common stock on the date of grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting of the restricted stock unit. Cohu’s Board of Directors authorized suspending our quarterly cash dividend indefinitely, as of May 5, 2020. All awards granted in fiscal 2024, 2023 and 2022 exclude the assumption of dividend payments.

The following weighted average assumptions were used to value share-based awards granted:

			Employee Stock Purchase Plan

			2024

			2023

			2022

			Expected volatility

			35.5
			%

			36.3
			%

			45.6
			%

			Risk-free interest rate

			5.3
			%

			4.5
			%

			1.2
			%

			Expected term (years)

			0.5

			0.5

			0.5

			Weighted-average grant date fair value per share

			$
			7.49

			$
			8.54

			$
			8.79

Reported share-based compensation is classified in the consolidated financial statements as follows:

			(in thousands)

			2024

			2023

			2022