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STOCKHOLDERS’ EQUITY
 6 Months Ended
Jun. 29, 2025
Equity [Abstract]  
STOCKHOLDERS’ EQUITY
6. STOCKHOLDERS' EQUITY
In Q2 2025, the Company’s stockholders approved an amendment and restatement of the Amended and Restated 2015 Stock and Incentive Compensation Plan to, among other things, increase the maximum number of shares authorized for issuance by 7.9 million shares. As of June 29, 2025, approximately 11.3 million shares remained available for future grants under the Second Amended and Restated 2015 Stock and Incentive Compensation Plan.
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 thousandsRSUPSU
Outstanding at December 29, 20243,879 700 $158.60 $164.87 
Awarded1,746 190 $86.13 $97.90 
Vested(772)— $148.57 $— 
Cancelled(403)(146)$148.38 $160.66 
Outstanding at June 29, 20254,450 744 $132.83 $130.40 
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(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.
Employee Stock Purchase Plan (ESPP)
The price at which common stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first day of the offering period or purchase date, whichever is lower. During YTD 2025, approximately 0.4 million shares were issued under the plan. As of June 29, 2025, approximately 12.0 million shares remained available for issuance under the ESPP.
The assumptions used and the resulting estimate of weighted-average fair value per share for stock purchased under the ESPP during YTD 2025 were as follows:
Risk-free interest rate
4.06% - 4.94%
Expected volatility
41% - 48%
Expected term
0.5 - 1.0 year
Expected dividends0%
Weighted-average grant-date fair value per share$25.84 
Share-Based Compensation
Share-based compensation expense reported in our consolidated statements of operations was as follows:
In millionsQ2 2025Q2 2024YTD 2025YTD 2024
Cost of product revenue$6 $7 $11 $13 
Cost of service and other revenue1 1 1 4 
Research and development28 43 58 82 
Selling, general and administrative34 59 72 109 
Share-based compensation expense, before taxes69 110 142 208 
Related income tax benefits(15)(26)(31)(48)
Share-based compensation expense, net of taxes (1)
$54 $84 $111 $160 
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(1)In Q2 2024 and YTD 2024, we recognized expense related to GRAIL liability-classified awards of $23 million and $52 million, respectively.
As of June 29, 2025, unrecognized compensation cost, related to restricted stock and ESPP shares issued to date, of $553 million was expected to be recognized over a weighted-average period of approximately 2.5 years.
Share Repurchases
In August 2024, our Board of Directors authorized a new share repurchase program, which cancels and supersedes all prior and available repurchase authorizations, to repurchase up to $1.5 billion of our outstanding common stock. The repurchases may be completed through open market purchases, pursuant to Rule 10b5-1 or Rule 10b-18, or through an accelerated share repurchase program. Authorizations to repurchase up to approximately $804 million of our outstanding common stock remained available as of June 29, 2025.
Share repurchase activity, which includes unsettled repurchases as of June 29, 2025, was as follows:
In millions, except shares in thousands
Q2 2025YTD 2025
Number of shares repurchased
4,489 6,217 
Total cost of shares repurchased (1)
$384 $585 
_____________
(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 Q2 2025 and YTD 2025.
Subsequent to June 29, 2025 and through August 1, 2025, we repurchased an additional approximate 230,300 shares of our common stock for $22 million.