XML 95 R20.htm IDEA: XBRL DOCUMENT v3.3.0.814
Share-Based Compensation and Savings Plans
 3 Months Ended
Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation and Savings Plans
Share-Based Compensation and Savings Plans
Share-Based Compensation Plans
We maintain stock incentive plans (collectively, the “Plans”) for the benefit of certain of our officers, directors, and employees.
The following table provides total share-based compensation expense by type of award:
 
Three Months Ended September 30
(in millions)
2015
 
2014
Restricted share unit expense
$
13

 
$
16

Employee stock option expense
5

 
5

Performance share unit expense
12

 
4

Total share-based compensation
$
30

 
$
25


The total tax benefit related to share-based compensation was $11 million and $9 million for the three months ended September 30, 2015 and 2014, respectively.
Stock Options
Employee stock options granted under the Plans generally vest in equal annual installments over three years and are exercisable for periods ranging from seven to ten years from the grant date. All stock options are exercisable at a price equal to the market value of the common shares underlying the option on the grant date.
The following table summarizes all stock option transactions under the Plans:
(in millions, except per share amounts)
Stock
Options
 
Weighted-Average
Exercise Price per
Common Share
Outstanding at June 30, 2015
8

 
$
46.50

Granted
1

 
84.28

Exercised
(1
)
 
37.20

Canceled and forfeited
—

 
—

Outstanding at September 30, 2015
8

 
$
53.24

Exercisable at September 30, 2015
5

 
$
42.18


At September 30, 2015, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested stock options not yet recognized was $37 million, which is expected to be recognized over a weighted-average period of two years. The following table provides additional detail related to stock options:
(in millions, except per share amounts)
September 30, 2015
 
June 30, 2015
Aggregate intrinsic value of outstanding options at period end
$
201

 
$
281

Aggregate intrinsic value of exercisable options at period end
182

 
193

Weighted-average remaining contractual life of outstanding options (in years)
7

 
6

Weighted-average remaining contractual life of exercisable options (in years)
6

 
5


Restricted Share Units
Restricted share units granted under the Plans generally vest in equal annual installments over three years. Restricted share units accrue cash dividend equivalents that are payable upon vesting of the awards.
The following table summarizes all transactions related to restricted share units under the Plans:
(in millions, except per share amounts)
Restricted Share Units
 
Weighted-Average
Grant Date Fair
Value per Share
Nonvested at June 30, 2015
3

 
$
59.69

Granted
1

 
84.30

Vested
(1
)
 
53.31

Canceled and forfeited
—

 
—

Nonvested at September 30, 2015
3

 
$
73.29


At September 30, 2015, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested restricted share units not yet recognized was $121 million, which is expected to be recognized over a weighted-average period of two years.
Performance Share Units
Performance share units vest over a three-year performance period based on achievement of specific performance goals. Based on the extent to which the targets are achieved, vested shares may range from zero to 200 percent of the target award amount. Performance share units accrue cash dividend equivalents that are payable upon vesting of the awards.
The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts):
(in millions, except per share amounts)
Performance
Share Units
 
Weighted-Average
Grant Date Fair
Value per Share
Nonvested at June 30, 2015
0.9

 
$
50.31

Granted
0.3

 
84.34

Vested (1)
(0.4
)
 
39.81

Canceled and forfeited
—

 
—

Nonvested at September 30, 2015
0.8

 
$
62.64


(1) Vested based on achievement of 133 percent of the target performance goal.
At September 30, 2015, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized was $26 million, which is expected to be recognized over a weighted-average period of two years.