Share-based compensation expense recognized in the Condensed Consolidated Statements of Operations is based on awards ultimately expected to vest. Share-based compensation expense includes expenses related to the Company’s direct employees.

The table below summarizes the effect of recording share-based compensation expense and the option value of the employee stock purchase plan shares:


	Three Months Ended				Nine Months Ended
(In millions)	July 3, 2026		July 4, 2025		July 3, 2026		July 4, 2025
Cost of revenues	$	0.4	$	0.5	$	1.4	$	1.6
Research and development	0.8		0.7		2.4		2.4
Selling, general, and administrative	2.6		2.5		7.8		7.6
Total share-based compensation expense	$	3.8	$	3.7	$	11.6	$	11.6

The following table summarizes stock option activity under Varex’s employee incentive plans for the Company's employees:



(In thousands, except per share amounts and the remaining term)	Options	Price Range	Weighted Average Exercise Price		Weighted Average Remaining Term (in years)	Aggregate Intrinsic Value(1)
Outstanding at October 3, 2025	1,830	$13.61 - $31.42	$	25.61	5.1	$	—

Canceled, expired or forfeited	(205)	$31.42 - $31.42	31.42

Outstanding at July 3, 2026	1,625	$13.61 - $30.95	$	24.88	5.0	$	—

Exercisable at July 3, 2026	1,563	$13.61 - $30.95	$	25.02	4.9	$	—

(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 Varex common stock of $10.61 as of July 2, 2026, the last trading date of the Company's third quarter, and which represents the amount that would have been received by the option holders had all option holders exercised their in-the-money options and sold the shares received upon exercise as of that date.

The Company issues performance stock units ("PSUs") to certain officers and key employees in connection with our long-term incentive program. Each PSU represents the right to receive one share of our common stock, provided that the applicable performance and vesting conditions are satisfied. The fair value of PSUs are linked to the achievement of financial performance metrics or a market condition based on our relative total shareholder return over the performance period compared to a predetermined peer group.

The following table summarizes the activity for restricted stock units, performance stock units, restricted stock awards, and deferred stock units under the 2020 Omnibus Stock Plan:



(In thousands, except per share amounts)	Number of Shares	Weighted Average Grant-Date Fair Value
Outstanding at October 3, 2025	1,946	$	18.35
Granted	1,071	12.11
Vested	(429)	21.74

Canceled or expired	(24)	17.00
Outstanding at July 3, 2026	2,564	$	15.17

While the PSU amounts shown in the table above reflect achievement at target, the number of PSUs that ultimately vest will be based on a comparison of certified performance results to predefined performance criteria that include threshold, target and maximum attainment levels.