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Stock-based Compensation | 3 Months Ended
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Jul. 01, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-based Compensation | Stock-based Compensation The Company's stock-based compensation awards are currently issued under the 2019 Incentive Plan, which was approved by its stockholders on August 1, 2019. However, any prior awards granted under either the Company's 2010 Incentive Plan or 1997 Incentive Plan remain subject to the terms of those plans, as applicable. Any awards that expire, are forfeited, or are surrendered to the Company in satisfaction of taxes are available for issuance under the 2019 Incentive Plan. Refer to Note 18 of the Fiscal 2023 10-K for a detailed description of the Company's stock-based compensation awards, including information related to vesting terms, service, performance, and market conditions and payout percentages. Impact on Results A summary of total stock-based compensation expense and the related income tax benefits recognized during the three-month periods ended July 1, 2023 and July 2, 2022 is as follows:
|  |  |  | Three Months Ended
|  |  |  |  |  | July 1, 2023 |  | July 2, 2022
|  |  |  |  |  | (millions)
Compensation expense |  |  |  |  |  | $ | 21.4 |  |  | $ | 18.2 |
Income tax benefit |  |  |  |  |  | (3.3) |  |  | (2.8) |
The Company issues its annual grants of stock-based compensation awards in the first half of each fiscal year. Due to the timing of the annual grants and other factors, including the timing and magnitude of forfeiture and performance goal achievement adjustments, as well as changes to the size and composition of the eligible employee population, stock-based compensation expense recognized during any given fiscal period is not indicative of the level of compensation expense expected to be incurred in future periods. Service-based RSUs The fair values of service-based RSUs granted to certain of the Company's senior executives and other employees, as well as non-employee directors, are based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for any awards for which dividend equivalent amounts do not accrue to the holder while outstanding and unvested. The weighted-average grant date fair values of service-based RSU awards granted were $114.21 and $89.99 per share during the three-month periods ended July 1, 2023 and July 2, 2022, respectively. A summary of service-based RSU activity during the three months ended July 1, 2023 is as follows:
|  | Number of Service-based RSUs
|  | (thousands)
Unvested at April 1, 2023 |  | 1,585 |
Granted |  | 6 |
Vested |  | (164) |
Forfeited |  | (17) |
Unvested at July 1, 2023 |  | 1,410 |
Performance-based RSUs The fair values of the Company's performance-based RSUs granted to its senior executives and other key employees are based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for any awards for which dividend equivalent amounts do not accrue to the holder while outstanding and unvested. No such awards were granted during the three-month periods ended July 1, 2023 and July 2, 2022. Market-based RSUs The Company grants market-based RSUs, which are based on total shareholder return ("TSR") performance, to its senior executives and other key employees. The Company estimates the fair value of its TSR awards on the date of grant using a Monte Carlo simulation, which models multiple stock price paths of the Company's Class A common stock and that of its peer group to evaluate and determine its ultimate expected relative TSR performance ranking. Compensation expense, net of estimated forfeitures, is recorded regardless of whether, and the extent to which, the market condition is ultimately satisfied. No such awards were granted during the three-month periods ended July 1, 2023 and July 2, 2022. A summary of performance-based RSU activity including TSR awards during the three months ended July 1, 2023 is as follows:
|  | Number of Performance-based RSUs
|  | (thousands)
Unvested at April 1, 2023 |  | 469 |
Granted |  | — |
Change due to performance and/or market condition achievement |  | — |
Vested |  | — |
Forfeited |  | — |
Unvested at July 1, 2023 |  | 469 |

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