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STOCKHOLDERS’ EQUITY (Tables)

3 Months Ended

Mar. 30, 2025

Equity [Abstract]

Schedule of Restricted Stock Activity and Related Information, Restricted Stock

Restricted stock activity was as follows:

			Restricted Stock Units (RSU)						Performance Stock Units (PSU) (1)						Weighted-Average Grant Date Fair Value per Share
Units in thousands															RSU						PSU
Outstanding at December 29, 2024			3,879						700						$	158.60					$	164.87
Awarded			1,640						234						$	86.85					$	97.77
Vested			(728)						—						$	146.86					$	—
Cancelled			(104)						(38)						$	156.33					$	181.64
Outstanding at March 30, 2025			4,687						896						$	135.37					$	115.97

_____________

(1)We issue PSU for which the number of shares issuable is based on our performance relative to specified operating margin targets (OM PSU) and PSU with a market condition that vest based on the Company’s relative total shareholder return as compared to a peer group of companies (rTSR PSU). Beginning in fiscal year 2025, we no longer issue PSU for which the number of shares issuable is based on our performance relative to specified earnings per share targets. For OM PSU, the number of units reflect the estimated number of shares to be issued at the end of the performance period. For rTSR PSU, the number of units reflect the estimated number of shares to be issued based on performance as of the current reporting period. Awarded units are presented net of performance adjustments.

Schedule of Restricted Stock Activity and Related Information, Performance Units

Restricted stock activity was as follows:

			Restricted Stock Units (RSU)						Performance Stock Units (PSU) (1)						Weighted-Average Grant Date Fair Value per Share
Units in thousands															RSU						PSU
Outstanding at December 29, 2024			3,879						700						$	158.60					$	164.87
Awarded			1,640						234						$	86.85					$	97.77
Vested			(728)						—						$	146.86					$	—
Cancelled			(104)						(38)						$	156.33					$	181.64
Outstanding at March 30, 2025			4,687						896						$	135.37					$	115.97

_____________

(1)We issue PSU for which the number of shares issuable is based on our performance relative to specified operating margin targets (OM PSU) and PSU with a market condition that vest based on the Company’s relative total shareholder return as compared to a peer group of companies (rTSR PSU). Beginning in fiscal year 2025, we no longer issue PSU for which the number of shares issuable is based on our performance relative to specified earnings per share targets. For OM PSU, the number of units reflect the estimated number of shares to be issued at the end of the performance period. For rTSR PSU, the number of units reflect the estimated number of shares to be issued based on performance as of the current reporting period. Awarded units are presented net of performance adjustments.

Schedule of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan

The assumptions used and the resulting estimate of weighted-average fair value per share for stock purchased under the ESPP during Q1 2025 were as follows:

Risk-free interest rate			4.06% - 4.94%
Expected volatility			41% - 48%
Expected term			0.5 - 1.0 year
Expected dividends			0%
Weighted-average grant-date fair value per share			$	25.84

Schedule of Share-based Compensation Expense for all Stock Awards

Share-based compensation expense reported in our consolidated statements of operations was as follows:

In millions			Q1 2025						Q1 2024
Cost of product revenue			$	5					$	5
Cost of service and other revenue			1						2
Research and development			30						39
Selling, general and administrative			37						50
Share-based compensation expense, before taxes			73						96
Related income tax benefits			(16)						(22)
Share-based compensation expense, net of taxes (1)			$	57					$	74

____________

(1)In Q1 2024, we recognized share-based compensation expense related to GRAIL liability-classified awards of $29 million.

Schedule of Share Repurchase Activity

Share repurchase activity during Q1 2025 was as follows:

In millions, except shares in thousands
Number of shares repurchased			1,728
Total cost of shares repurchased (1)			$	201

_____________

(1)Total cost of shares repurchased includes the 1% excise tax imposed as part of the Inflation Reduction Act of 2022, which is calculated based on share repurchases, net of certain share issuances, and was immaterial for Q1 2025.

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Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement.

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Disclosure of the number and weighted-average grant date fair value for restricted stock and restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock and restricted stock units that were granted, vested, or forfeited during the year.

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Tabular disclosure of treasury stock, including, but not limited to, average cost per share, description of share repurchase program, shares repurchased, shares held for each class of treasury stock.

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