Stockholder's Equity

6 Months Ended

Mar. 30, 2018

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Stock Repurchase Program

On January 31, 2018, the Board of Directors approved a stock repurchase program, pursuant to which the Company is authorized to repurchase up to $1.0 billion of its common stock from time to time prior to January 31, 2020, on the open market or in privately negotiated transactions, as permitted by securities laws and other legal requirements. This recently authorized stock repurchase program replaces in its entirety the January 17, 2017, stock repurchase program. The timing and amount of any shares of the Company’s common stock that are repurchased under the repurchase program will be determined by the Company’s management based on its evaluation of market conditions and other factors. The repurchase program may be suspended or discontinued at any time. The Company currently expects to fund the repurchase program using the Company’s working capital.

During the three months ended March 30, 2018, the Company paid $111.8 million (including commissions) in connection with the repurchase of 1.0 million shares of its common stock (paying an average price of $109.22 per share). During the six months ended March 30, 2018, the Company paid $284.2 million (including commissions) in connection with the repurchase of 2.7 million shares of its common stock (paying an average price of $106.32 per share). As of March 30, 2018, $888.2 million remained available under the existing stock repurchase authorization.

Dividends

On May 3, 2018, the Company announced that the Board of Directors had declared a cash dividend on its common stock of $0.32 per share, payable on June 12, 2018, to the Company’s stockholders of record as of the close of business on May 22, 2018.

During the three and six months ended March 30, 2018, dividends charged to retained earnings were as follows (in millions, except per share data):

	Per share		Total Amount
First quarter	$	0.32	$	58.8
Second quarter	0.32		58.5
Total	$	0.64	$	117.3

Share-based Compensation

The following table summarizes the share-based compensation expense by line item in the Statements of Operations (in millions):

	Three Months Ended				Six Months Ended
	March 30, 2018		March 31, 2017		March 30, 2018		March 31, 2017
Cost of goods sold	$	4.2	$	3.4	$	8.3	$	7.2
Research and development	14.5		8.5		25.7		16.8
Selling, general and administrative	22.3		10.2		32.8		19.7
Total share-based compensation	$	41.0	$	22.1	$	66.8	$	43.7

On November 15, 2017, the Company agreed to potentially issue not more than 1% of its common stock to an unaffiliated third party as a contingent consideration for its role under a multi-year collaboration agreement, upon the achievement of certain product sales milestones. The shares have been valued utilizing a probability weighted series of Black-Scholes pricing models and could be issued after mid-2020.  The shares will be marked to estimated fair value each reporting period through earnings.  The amount recorded in the statement of operations within selling, general and administrative expense for the six months ended March 30, 2018, is not material.