The table below summarizes the share-based compensation expense recognized for employee stock awards and employee stock purchase plan shares:


	Three Months Ended
(In millions)		January 1, 2021		January 3, 2020
Cost of revenues - Product		$	1.0	$	0.8
Cost of revenues - Service		1.6		1.3
Research and development		1.9		1.2
Selling, general and administrative		12.2		11.6
Total share-based compensation expense		$	16.7	$	14.9
Income tax benefit for share-based compensation		$	(3.3)	$	(2.9)

The fair value of stock options and performance stock options granted was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions:


	Three Months Ended
		January 1, 2021			January 3, 2020
Employee Stock Option Plans (1)
Expected term (in years)		—			3.8
Risk-free interest rate		—		%	1.6		%
Expected volatility		—		%	26.0		%
Expected dividend		—		%	—		%
Weighted average fair value at grant date (2)		$	—		$	29.42

(1)The Company did not grant stock options to its employees in the period ending January 1, 2021.

(2)Excludes the fair value of the market condition based on relative total shareholder return for the performance stock options granted during the period.

The option component of employee stock purchase plan shares was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions:


	Three Months Ended
		January 1, 2021			January 3, 2020
Employee Stock Purchase Plan
Expected term (in years)		0.50			0.50
Risk-free interest rate		0.1		%	1.6		%
Expected volatility		2.4		%	26.4		%
Expected dividend		—		%	—		%
Weighted average fair value at grant date		$	27.10		$	27.58


	Options Outstanding
(In millions, except per share amounts)	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Term (in years)	Aggregate Intrinsic Value (1)
Balance at October 2, 2020	1.9	$	110.79


Cancelled or expired	(0.1)	108.59
Exercised	(0.5)	97.90
Balance at January 1, 2021	1.3	$	115.67	4.5	$	78.8

Exercisable at January 1, 2021	0.6	$	99.56	3.5	$	47.8

(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 VMS common stock of $175.01 as of December 31, 2020, the last trading date of the first quarter of fiscal year 2021, and 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.

As of January 1, 2021, there was $12.3 million of total unrecognized compensation expense related to stock options and performance stock options granted under the Company's employee stock plans. This unrecognized compensation expense is expected to be recognized over a weighted average period of 1.6 years.

As of January 1, 2021, there was $1.7 million of total unrecognized compensation expense related to cash-settled stock appreciation rights granted outside of the Company's employee stock plans. This unrecognized compensation expense is expected to be recognized over a weighted average period of 1.8 years.

The activity for restricted stock units, deferred stock units and performance units is summarized as follows:


(In millions, except per share amounts)	Number of Shares	Weighted Average Grant-Date Fair Value
Balance at October 2, 2020	0.7	$	133.82
Granted	0.3	173.51

Vested	(0.1)	129.34
Cancelled or expired	—	119.34
Balance at January 1, 2021	0.9	$	148.44

As of January 1, 2021, unrecognized compensation expense totaling $89.4 million was related to awards of restricted stock units, deferred stock units and performance units granted under the Company's employee stock plans. This unrecognized share-based compensation expense is expected to be recognized over a weighted average period of 2.4 years.