EMPLOYEE STOCK PLANS (Tables)

3 Months Ended

Dec. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The fair value of the option component of the shares purchased under Varian’s Employee Stock Purchase Plan (which is described further below) was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions:



	Employee Stock Purchase Plan
	Three Months Ended December 30, 2016
Expected term (in years)	0.50
Risk-free interest rate	0.5		%
Expected volatility	22.3		%
Expected dividend	—		%
Weighted average fair value at grant date	$	19.37

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The table below summarizes the effect of recording share-based compensation expense:



	Three Months Ended
(In millions)	December 30, 2016		January 1, 2016
Cost of revenues	$	0.2	$	0.2
Research and development	0.4		0.3
Selling, general and administrative⁽¹⁾	1.7		1.6
Total share-based compensation expense	$	2.3	$	2.1

(1) Includes allocated share-based compensation of $0.8 million and $0.8 million for the three months ended December 30, 2016 and January 1, 2016, respectively, charged by Varian to the Company for certain Varian employees who provide general and administrative services on the Company’s behalf.

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes the activity for stock options under Varian’s employee incentive plans for the Company’s employees:



	Options Outstanding
(In millions, except per share amounts and the remaining term)	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Term (in years)	Aggregate Intrinsic Value (1)
Balance at September 30, 2016	0.3	$	78.69
Granted	—	—
Canceled, expired or forfeited	—	—
Exercised	—	—
Balance at December 30, 2016	0.3	$	78.83	4.5	$	3.3

Exercisable at December 30, 2016	0.2	$	78.26	3.6	$	2.1

(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 Varian common stock of $89.78 as of December 30, 2016, 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.

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

The following table summarizes the activity for restricted stock units and performance units under Varian’s employee incentive plans for the Company’s employees:



(In millions, except per share amounts)	Number of Shares	Weighted Average Grant-Date Fair Value
Balance at September 30, 2016	0.1	$	83.51
Granted	—	—
Vested	—	—
Canceled or expired	—	—
Balance at December 30, 2016	0.1	$	83.57