XML 49 R35.htm IDEA: XBRL DOCUMENT v3.22.4
Stock-Based Compensation (Tables)
12 Months Ended
Jan. 01, 2023
Equity [Abstract]  
Compensation Expense Related to Stock-Based Compensation Plans
Stock-based compensation expense was as follows:
Fiscal Year Ended
(In millions)202220212020
Cost of sales$2.9 $2.7 $2.0 
Research and development4.9 4.4 3.4 
Selling, marketing and administrative
27.4 18.3 15.6 
Acquisition and integration costs30.4 — — 
Total stock-based compensation expense$65.6 $25.4 $21.0 
Share-based Payment Arrangement, Option, Activity
A summary of the status of stock option activity for fiscal year 2022 is as follows:
(In thousands, except price data)
SharesWeighted-Average
Exercise Price
Per Share
Weighted-Average
Remaining Contractual Term (In Years)
Aggregate Intrinsic Value
Outstanding at January 2, 2022722 $62.71 
Granted187 100.45 
Stock options assumed in the Combinations1,229 96.10 
Exercised(383)55.15 
Forfeited(99)115.95 
Outstanding at January 1, 20231,656 $90.34 5.53$28,140 
Vested and expected to vest at January 1, 20231,600 $89.23 5.45$28,122 
Exercisable at January 1, 20231,195 $80.53 4.61$26,774 
Estimated Fair Value of Each Stock Option Award 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, including grants related to options assumed in the Combinations presented separately:
Assumed on
Fiscal Year Ended
May 27, 2022 (1)
January 1, 2023January 2, 2022January 3, 2021
Risk-free interest rate2.28 %1.96 %0.48 %1.18 %
Expected option life (in years)1.784.804.995.12
Volatility rate64 %57 %54 %41 %
Dividend rate%%%%
Weighted-average grant date fair value$40.57$50.62$106.55$36.84
(1) The replacement stock options granted to Ortho option holders on the closing date of the Combinations were issued consistent with the vesting conditions of the replaced award. The fair value on the closing date of the Combinations attributed to post-combination service, adjusted for estimated forfeitures, is recognized as expensed on a straight-line basis over the remaining vesting period.
Schedule of Nonvested Share Activity
A summary of the status of RSU activity for fiscal year 2022 is as follows:
(In thousands, except price data)
SharesWeighted-Average
Grant Date
Fair Value
Non-vested at January 2, 2022587 $95.81 
Granted720 97.31 
Stock awards assumed in the Combinations49 99.60 
Vested(248)86.61 
Forfeited(76)100.70 
Non-vested at January 1, 20231,032 $98.89