EMPLOYEE STOCK PLANS

3 Months Ended

Dec. 31, 2021

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 component of the employee stock purchase plan shares:

	Three Months Ended
(In millions)	December 31, 2021		January 1, 2021
Cost of revenues	$	0.4	$	0.3
Research and development	0.8		0.7
Selling, general and administrative	2.2		2.6
Total share-based compensation expense	$	3.4	$	3.6

Stock Option Activity

    The following table summarizes the activity for stock options under Varex’s 2020 Omnibus Stock Plan, 2017 Omnibus Stock Plan, and for participation in the 2017 Employee Stock Purchase Plan for the Company’s employees:

	Options Outstanding
(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 October 1, 2021	2,811	$13.61 - $37.60	$	28.69	4.7	$	5,161
Granted	319	$30.95 - $30.95	30.95
Exercised	(124)	$25.17 - $30.74	28.33
Outstanding at December 31, 2021	3,006	$13.61 - $37.60	$	28.95	5.2	$	9,102
Exercisable at December 31, 2021	1,856	$13.61 - $37.60	$	30.42	3.1	$	3,339

(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 $31.55 as of December 31, 2021, 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 options and sold the shares received upon exercise as of that date.

Restricted Stock Units

    The following table summarizes the activity for restricted stock units under Varex’s 2020 Omnibus Stock Plan and 2017 Omnibus Stock Plan for the Company’s employees:

(In thousands, except per share amounts)	Number of Shares	Weighted Average Grant-Date Fair Value
Outstanding at October 1, 2021	1,080	$	23.25
Granted	336	28.14
Vested	(2)	29.18
Canceled or expired	(12)	23.92
Outstanding at December 31, 2021	1,402	$	24.40