Share-Based Compensation

12 Months Ended

Mar. 28, 2020

Share-based Payment Arrangement [Abstract]

The Company issues equity grants to certain employees and directors of the Company at the discretion of the Company’s Compensation and Talent Committee. The Company has two equity plans which includes one stock option plan adopted in Fiscal 2008 (as amended and restated, the “2008 Plan”), and an Omnibus Incentive Plan adopted in the third fiscal quarter of Fiscal 2012 and amended and restated with shareholder approval in May 2015 (the “Incentive Plan”). The 2008 Plan only provided for grants of share options and was authorized to issue up to 23,980,823 ordinary shares. As of March 28, 2020, there were no shares available to grant equity awards under the 2008 Plan. The Incentive Plan allows for grants of share options, restricted shares and RSUs, and other equity awards, and authorizes a total issuance of up to 15,246,000 ordinary shares. At March 28, 2020, there were 2,686,919 ordinary shares available for future grants of equity awards under the Incentive Plan. Option grants issued from the 2008 Plan generally expire ten years from the date of the grant, and those issued under the Incentive Plan generally expire seven years from the date of the grant.

Share Options

Share options are generally exercisable at the fair market value on the date of grant and vest on a pro-rata basis over a four year service period. The following table summarizes the share options activity during Fiscal 2020, and information about options outstanding at March 28, 2020:


	Number of Options	Weighted Average Exercise price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in millions)
Outstanding at March 30, 2019	2,131,259	$	50.67
Granted	—	$	—
Exercised	(6,682)	$	27.01
Canceled/forfeited	(53,481)	$	53.79
Outstanding at March 28, 2020	2,071,096	$	50.66	1.86	$	3
Vested or expected to vest at March 28, 2020	2,071,096	$	50.66	1.86
Vested and exercisable at March 28, 2020	1,785,076	$	49.90	1.41	$	3

There were 286,020 unvested options and 1,785,076 vested options outstanding at March 28, 2020. The total intrinsic value of options exercised during Fiscal 2020 was immaterial and $94 million during Fiscal 2019. The cash received from options exercised during Fiscal 2020 was immaterial and $29 million during Fiscal 2019. As of March 28, 2020, the remaining unrecognized share-based compensation expense for nonvested share options was $2 million, which is expected to be recognized over the related weighted-average period of approximately 1.80 years.

There were no options granted during Fiscal 2020. The weighted average grant date fair value for options granted during Fiscal 2019 and Fiscal 2018 was $24.49 and $11.62, respectively. The following table represents assumptions used to estimate the fair value of options:


	Fiscal Years Ended
	March 28, 2020	March 30, 2019		March 31, 2018
Expected dividend yield	N/A	0.0	%	0.0	%
Volatility factor	N/A	36.9	%	36.3	%
Weighted average risk-free interest rate	N/A	2.8	%	1.8	%
Expected life of option	N/A	4.85 years		4.69 years

Restricted Awards

The Company grants restricted share units at the fair market value on the date of the grant. Expense for restricted awards is based on the closing market price of the Company’s shares on the date of grant and is recognized ratably over the vesting period net of expected forfeitures.

The Company grants two types of restricted stock unit ("RSU") awards: time-based RSUs and performance-based RSUs. Time-based RSUs generally vest in full either generally around the first anniversary of the date of grant for our independent directors, or in equal increments on each of the four anniversaries of the date of grant. Performance-based RSUs vest in full on the second or third anniversary of the date of grant, subject to the employee’s continued employment during the vesting period (unless the employee is retirement-eligible) and only if certain pre-established cumulative performance targets are met. Expense related to performance-based RSUs is recognized ratably over the performance period, net of forfeitures, based on the probability of attainment of the related performance targets. The potential number of shares that may be earned ranges from 0%, if the minimum level of performance is not attained, to 150%, if the level of performance is at or above the predetermined maximum achievement level.

The following table summarizes the RSU activity during Fiscal 2020:


	Service-based				Performance-based
	Number of Restricted Share Units	Weighted Average Grant Date Fair Value		Number of Restricted Share Units	Weighted Average Grant Date Fair Value
Unvested at March 30, 2019	3,839,862	$	46.11	737,074	$	52.34
Granted	1,987,450	$	33.92	169,817	$	33.86
Decrease due to performance condition	—	$	—	(39,999)	$	49.88
Vested	(1,209,177)	$	46.62	(53,025)	$	49.88
Canceled/forfeited	(306,452)	$	45.70	(41,695)	$	41.97
Unvested at March 28, 2020	4,311,683	$	40.34	772,172	$	49.13

The total fair value of service-based RSUs vested during Fiscal 2020, Fiscal 2019 and Fiscal 2018 was $56 million, $47 million and $18 million, respectively. The total fair value of performance-based RSUs vested during Fiscal 2020, Fiscal 2019 and Fiscal 2018 was $3 million, $7 million and $4 million, respectively. As of March 28, 2020, the remaining unrecognized share-based compensation expense for non-vested service-based and performance-based RSU grants was $111 million and $7 million, respectively, which is expected to be recognized over the related weighted-average periods of approximately 3.01 years and 1.45 years, respectively.

There were no non-vested restricted shares during Fiscal 2020. The total fair value of restricted shares vested was $4 million and $4 million during Fiscal 2019 and Fiscal 2018, respectively.

Share-Based Compensation Expense

The following table summarizes compensation expense attributable to share-based compensation for Fiscal 2020, Fiscal 2019 and Fiscal 2018 (in millions):


	Fiscal Years Ended
	March 28, 2020		March 30, 2019		March 31, 2018
Share-based compensation expense	$	70	$	60	$	50
Tax benefits related to share-based compensation expense	$	7	$	11	$	10

Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates forfeitures based on its historical forfeiture rate to date. The estimated value of future forfeitures for equity grants as of March 28, 2020 is approximately $22 million.