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Stock-Based Compensation
 6 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
The activity related to the Company’s incentive equity awards for the three months ended December 31, 2023 consisted of the following:
Stock OptionsTime-based
Restricted Stock Units		Performance-based
Restricted Stock Units
Number of
Options		Weighted-
Average
Exercise
Price		Number
of Shares		Weighted-
Average
Grant
Date Fair
Value		Number
of Shares		Weighted-
Average
Grant
Date Fair
Value
Balances at September 30, 20232,286,011 $120.92 721,325 $137.60 185,894 $153.62 
Granted25,477 176.32 260,507 170.50 92,905 168.95 
Exercise of stock options (a)(73,721)110.93 — — — — 
Vesting of restricted stock units
— — (23,793)80.31 (1,969)142.55 
Expired/forfeited(34,143)144.74 (13,754)150.45 (14,297)153.59 
Balances at December 31, 2023 (b),(c)
2,203,624 $121.53 944,285 $147.94 262,533 $159.13 
_________
(a)Stock options exercised during the period of October 1, 2023 through December 31, 2023 had an aggregate intrinsic value of $6.0 million.
(b)As of December 31, 2023, the Company’s outstanding vested and currently exercisable stock options using the December 31, 2023 closing stock price of $205.75 (approximately 1.2 million shares) had an aggregate intrinsic value of $123.6 million with a weighted-average exercise price of $104.00 and a weighted-average remaining contractual life of 4.6 years. The total of all stock options outstanding as of December 31, 2023 has a weighted-average remaining contractual life of 6.3 years.
(c)As of December 31, 2023, time-based restricted stock units and performance-based restricted stock units expected to vest using the December 31, 2023 closing stock price of $205.75 (approximately 0.9 million and 0.2 million shares, respectively) had an aggregate intrinsic value of $183.2 million and $48.1 million, respectively. Performance-based restricted stock units granted in the table above represent initial target awards, and performance adjustments for (i) change in shares issued based upon attainment of performance goals determined in the period, and (ii) estimated change in shares issued resulting from attainment of performance goals to be determined at the end of the prospective performance period.
The activity related to the Company’s incentive equity awards for the six months ended December 31, 2023 consisted of the following:
Stock OptionsTime-based
Restricted Stock Units		Performance-based
Restricted Stock Units
Number of
Options		Weighted-
Average
Exercise
Price		Number
of Shares		Weighted-
Average
Grant
Date Fair
Value		Number
of Shares		Weighted-
Average
Grant
Date Fair
Value
Balances at June 30, 20232,696,805 $116.46 731,327 $137.76 201,705 $153.42 
Granted25,477 176.32 264,578 170.53 92,905 168.95 
Exercise of stock options (a)(484,515)94.56 — — — — 
Vesting of restricted stock units
— — (29,499)97.62 (15,002)150.02 
Expired/forfeited(34,143)144.74 (22,121)148.80 (17,075)153.12 
Balances at December 31, 20232,203,624 $121.53 944,285 $147.94 262,533 $159.13 
_________
(a)Stock options exercised during the period of July 1, 2023 through December 31, 2023 had an aggregate intrinsic value of $43.0 million.
The Company has stock-based compensation plans under which the Company annually grants stock option and restricted stock unit awards. Stock options are granted to employees at exercise prices equal to the fair market value of the Company’s common stock on the dates of grant, with the measurement of stock-based compensation expense recognized in Net earnings based on the fair value of the award on the date of grant. Stock-based compensation expense of $20.5 million and $20.9 million, as well as related expected tax benefits of $4.2 million and $4.8 million were recognized for the three months ended December 31, 2023 and 2022, respectively. Stock-based compensation expense of $36.9 million and $36.5 million, as well as related expected tax benefits of $7.0 million and $8.3 million were recognized for the six months ended December 31, 2023 and 2022, respectively.
As of December 31, 2023, the total remaining unrecognized compensation cost related to non-vested stock options and restricted stock unit awards amounted to $12.2 million and $80.3 million, respectively, which will be amortized over the weighted-average remaining requisite service periods of 1.9 years and 2.0 years, respectively.
For stock options granted, the fair value of each stock option was estimated on the date of grant using a binomial option pricing model. The binomial model considers a range of assumptions related to volatility, risk-free interest rate and employee exercise behavior. Expected volatilities utilized in the binomial model are based on a combination of implied market volatilities, historical volatility of the Company’s stock price and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock option grants is derived from the output of the binomial model and represents the period of time that options granted are expected to be outstanding.