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EMPLOYEE STOCK PLANS | 3 Months Ended
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Dec. 29, 2023
Share-Based Payment Arrangement [Abstract] |
EMPLOYEE STOCK PLANS | EMPLOYEE STOCK PLANS Share-Based Compensation Expense Share-based compensation expense recognized in the Condensed Consolidated Statements of Operations is based on awards ultimately expected to vest. Share-based compensation expense includes expenses related to the Company’s direct employees. The table below summarizes the effect of recording share-based compensation expense and the option value of the employee stock purchase plan shares:
| Three Months Ended |  |
(In millions) | December 29, 2023 |  | December 30, 2022 |  |  |  |
Cost of revenues | $ | 0.5 |  |  | $ | 0.4 |  |  |  |  |
Research and development | 0.9 |  |  | 0.8 |  |  |  |  |
Selling, general, and administrative | 2.3 |  |  | 2.1 |  |  |  |  |
Total share-based compensation expense | $ | 3.7 |  |  | $ | 3.3 |  |  |  |  |
Stock Option Activity The following table summarizes the activity for stock options under Varex’s employee incentive plans for the Company's employees:
(In thousands, except per share amounts and the remaining term) | Options |  | Price Range |  | Weighted Average Exercise Price |  | Weighted Average Remaining Term (in years) |  | Aggregate Intrinsic Value(1)
Outstanding at September 29, 2023 | 2,862 |  |  | $13.61 - $37.60 |  | $ | 28.08 |  |  | 4.8 |  | $ | 871.4 |
Granted | — |  |  | $0.00 - $0.00 |  | — |  |  |  |  |
Canceled, expired or forfeited | — |  |  | $0.00 - $0.00 |  | — |  |  |  |  |
Outstanding at December 29, 2023 | 2,862 |  |  | $13.61 - $37.60 |  | $ | 28.08 |  |  | 4.6 |  | $ | 1,159.0 |
Exercisable at December 29, 2023 | 2,249 |  |  | $13.61 - $37.60 |  | $ | 29.01 |  |  | 3.6 |  | $ | 937.8 |
(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, which is computed based on the difference between the exercise price and the closing price of Varex common stock of $20.50 as of December 29, 2023, the last trading date of the Company's first quarter, and which represents the amount that would have been received by the option holders had all option holders exercised their in-the-money options and sold the shares received upon exercise as of that date. Restricted Stock Units, Performance Stock Units, Restricted Stock Awards, and Deferred Stock Units In the first quarter of fiscal year 2024, the Company issued performance stock units ("PSUs"). PSUs are awarded to certain officers and key employees in connection with our long-term incentive program. Each PSU represents the right to receive one share of our common stock, provided that the applicable performance and vesting conditions are satisfied. The fair value of certain PSUs are linked to the achievement of performance goals based on Adjusted EBITDA margin. Share-based compensation expense for these PSUs are recognized over the performance period based on the probability of achieving the performance targets. Certain PSUs include a performance objective based on our relative total shareholder return over the performance period compared to a predetermined peer group. The fair value of these awards is determined using a Monte Carlo simulation as of the date of the grant and share-based compensation expense will not be adjusted should the target awards vary from actual awards. The following table summarizes the activity for restricted stock units, performance stock units, restricted stock awards, and deferred stock units under the 2020 Omnibus Stock Plan:
(In thousands, except per share amounts) | Number of Shares |  | Weighted Average Grant-Date Fair Value
Outstanding at September 29, 2023 | 1,277 |  |  | $ | 22.30 |
Granted | 785 |  |  | 20.17 |
Vested | (142) |  |  | 28.04 |
Canceled or expired | (16) |  |  | 21.91 |
Outstanding at December 29, 2023 | 1,904 |  |  | $ | 21.00 |

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