Employee Benefit Plans

9 Months Ended

Mar. 31, 2020

Employee Benefit PlansStock-based Compensation Plans. Stock-based compensation consists of the following:

The Company's share-based compensation consists of stock options, time-based restricted stock, time-based restricted stock units, performance-based restricted stock, and performance-based restricted stock units. The Company also offers an employee stock purchase plan for eligible employees.

The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock awards. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program. During the second quarter of fiscal 2020, the Board of Directors authorized the repurchase of $5 billion of our common stock, replacing in its entirety the previous 2015 authorization to purchase up to 25 million shares of our common stock. The Company repurchased 2.5 million and 1.6 million shares in the three months ended March 31, 2020 and 2019, respectively. The Company repurchased 6.2 million and 5.4 million shares in the nine months ended March 31, 2020 and 2019, respectively, of which $536.6 million in the nine months ended March 31, 2020 were repurchased under the November 2019 authorization. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions.

The following table represents pre-tax stock-based compensation expense for the three and nine months ended March 31, 2020 and 2019, respectively:


	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2020		2019		2020		2019
Operating expenses	$	3.0	$	4.1	$	10.5	$	12.9
Selling, general and administrative expenses	26.1		36.1		82.3		94.6
System development and programming costs	4.3		5.0		13.9		14.7
Total stock-based compensation expense	$	33.4	$	45.2	$	106.7	$	122.2

The methods and assumptions used in the determination of the fair value of stock-based awards are consistent with those described in the Company's Form 10-K for fiscal 2019. See the Company's Annual Report on Form 10-K for fiscal 2019 for a detailed description of the Company's stock-based compensation awards and employee stock purchase plan, including information related to vesting terms, service and performance conditions, payout percentages, and process for estimating the fair value of stock options granted.

Pension Plans

The components of net pension expense were as follows:


	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2020		2019		2020		2019
Service cost – benefits earned during the period	$	14.9	$	14.9	$	44.8	$	44.9
Interest cost on projected benefits	15.5		19.7		46.3		59.0
Expected return on plan assets	(29.5)		(32.9)		(88.4)		(98.9)
Net amortization and deferral	1.9		—		4.8		0.1
Settlement charges, special termination benefits and plan curtailment	(17.0)		7.8		(22.1)		35.9
Net pension expense	$	(14.2)	$	9.5	$	(14.6)	$	41.0

The US pension plan, which is currently closed to new entrants, will be frozen effective July 1, 2020. Benefits under the plan will continue to accrue through June 30, 2020, and as of July 1, 2020 and onward, participants will retain their accrued benefits and will not accrue any future benefits due to service rendered or pay increases. As a result of the freeze, the Company recognized $17.0 million of prior service credits during the three months ended March 31, 2020 within Other Income, net, which were previously recognized within accumulated other comprehensive income (see Note 15).

In fiscal 2018, the Company offered a Voluntary Early Retirement Program (“VERP”) to certain eligible U.S.-based associates aged 55 or above with at least 10 years of service. During the three and nine months ended March 31, 2019, the Company recorded $7.8 million and $35.9 million, respectively, of non-cash settlement charges and special termination benefits.