Share-based Compensation

9 Months Ended

Mar. 27, 2021

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

The following table shows the share-based compensation expense and the related tax benefits recognized in the Company's Condensed Consolidated Statements of Operations for the periods indicated:


	Three Months Ended				Nine Months Ended
	March 27, 2021		March 28, 2020		March 27, 2021		March 28, 2020
	(millions)
Share-based compensation expense(1)	$	21.1	$	13.2	$	53.1	$	56.8
Income tax benefit related to share-based compensation expense	4.2		2.9		10.0		11.8

(1) During the three and nine months ended March 27, 2021, the Company incurred $3.3 million and $6.4 million of share-based compensation expense related to its Acceleration Program. During the three and nine months ended March 28, 2020, the Company incurred $0.0 million and $9.8 million of share-based compensation expense related to its organization-related and integration activities, respectively.

Stock Options

A summary of stock option activity during the nine months ended March 27, 2021 is as follows:


			Number of Options Outstanding
			(millions)
Outstanding at June 27, 2020			15.0
Granted			1.5
Exercised			(1.2)
Forfeited or expired			(1.3)
Outstanding at March 27, 2021			14.0

The weighted-average grant-date fair value of options granted during the nine months ended March 27, 2021 and March 28, 2020 was $7.09 and $3.83, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model and the following weighted-average assumptions:


	March 27, 2021		March 28, 2020
Expected term (years)	5.1		5.1
Expected volatility	48.8	%	37.6	%
Risk-free interest rate	0.3	%	1.5	%
Dividend yield	—	%	6.4	%

Service-based Restricted Stock Unit Awards ("RSUs")

A summary of service-based RSU activity during the nine months ended March 27, 2021 is as follows:


			Number of Non-vested RSUs
			(millions)
Non-vested at June 27, 2020			4.9
Granted			4.7
Vested			(1.6)
Forfeited			(0.5)
Non-vested at March 27, 2021			7.5

The weighted-average grant-date fair value of share awards granted during the nine months ended March 27, 2021 and March 28, 2020 was $15.96 and $21.34, respectively.

Performance-based Restricted Stock Unit Awards ("PRSUs")

A summary of PRSU activity during the nine months ended March 27, 2021 is as follows:


			Number of Non-vested PRSUs
			(millions)
Non-vested at June 27, 2020			0.8
Granted			0.9
Change due to performance condition achievement			—
Vested			(0.2)
Forfeited			(0.1)
Non-vested at March 27, 2021			1.4

The PRSU awards included in the non-vested amount are based on certain Company-specific financial metrics. The effect of the change due to performance condition on the non-vested amount is recognized at the conclusion of the performance period, which may differ from the date on which the award vests.

The weighted-average grant-date fair value per share of PRSU awards granted during the nine months ended March 27, 2021 and March 28, 2020 was $16.71 and $21.30, respectively.