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Stock-Based Compensation
 3 Months Ended
Apr. 02, 2023
Equity [Abstract]  
Stock-Based Compensation Stock-based Compensation
Stock-based compensation expense was as follows:
Three Months Ended
(In millions)April 2, 2023April 3, 2022
Cost of sales$1.0 $0.6 
Research and development1.3 1.1 
Selling, marketing and administrative
7.2 5.3 
Acquisition and integration costs4.5 0.4 
Total stock-based compensation expense$14.0 $7.4 
The table above includes $3.0 million of compensation expense related to liability-classified awards for the three months ended April 2, 2023, which has been or is expected to be settled in cash. These awards represent the $7.14 per share cash settled portion of the replacement awards issued in connection with the Combinations.
The Company granted 83 thousand stock options during the three months ended April 2, 2023. As of April 2, 2023, total unrecognized compensation expense related to stock options was approximately $22.6 million and the related weighted-average period over which it is expected to be recognized is approximately 1.9 years. The maximum contractual term of the Company’s stock options is ten years.
The estimated fair value of each stock option was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions for the option grants:
Three Months Ended
April 2, 2023April 3, 2022
Risk-free interest rate3.63 %1.63 %
Expected option life (in years)5.514.91
Volatility rate57 %58 %
Dividend rate0 %0 %
Weighted-average grant date fair value$47.83$51.79
During the three months ended April 2, 2023, the Compensation Committee of the Company’s Board of Directors approved a modification to the vesting terms of certain stock options that were previously granted by Ortho to certain Ortho employees, such that the stock options will vest on December 31, 2023. The modification resulted in an additional $2.0 million of stock-based compensation expense recognized during the three months ended April 2, 2023. The total unrecognized expense relating to unvested shares for these stock options as of April 2, 2023 was $9.2 million and will be recognized through December 31, 2023.
The Company granted 177 thousand RSUs during the three months ended April 2, 2023. The fair value of RSUs is determined based on the closing market price of the Company’s common stock on the grant date. The weighted-average fair value of RSUs granted during the three months ended April 2, 2023 and April 3, 2022 was $86.70 and $103.60, respectively. The total amount of unrecognized compensation expense related to non-vested RSUs as of April 2, 2023 was approximately $66.0 million, which is expected to be recognized over a weighted-average period of approximately 2.3 years.