Stockholders' Equity

6 Months Ended

Oct. 02, 2020

Equity [Abstract]

Stockholders' Equity

Shareholders’ Equity

Cash Dividends

During the fiscal quarters ended October 2, 2020 and September 30, 2019, the Board of Directors declared cash dividends to our shareholders of approximately $12 million ($0.07 per common share) and $10 million ($0.06 per common share), respectively. During the two fiscal quarters ended October 2, 2020 and September 30, 2019, the Board of Directors declared cash dividends to our shareholders of approximately $23 million ($0.14 per common share) and $20 million ($0.12 per common share), respectively. The cash dividends were paid in the fiscal quarter following their declaration.

On November 9, 2020, the Board of Directors declared a dividend of $0.07 per common share payable on January 15, 2021 to common shareholders of record at the close of business on November 24, 2020.

Share-based Compensation

The Company recognized $10 million in share-based compensation expense during each of the fiscal quarters ended October 2, 2020 and September 30, 2019. The Company recognized $17 million and $15 million in share-based compensation for the two fiscal quarters ended October 2, 2020 and September 30, 2019, respectively. During the two fiscal quarters ended October 2, 2020, the Company granted approximately 1.1 million time-based restricted stock units

(“RSUs”) and approximately 916 thousand performance-based restricted stock units (“PSUs”). The RSUs and PSUs are valued using the closing price on the trading day of the grant. The weighted average grant date fair value of the RSUs and PSUs granted during the two fiscal quarters ended October 2, 2020 was $23.81 and $23.98, respectively.

Employee Stock Purchase Plan

On August 5, 2020, the Company’s shareholders approved the Perspecta Inc. Employee Stock Purchase Plan (the “ESPP”). The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code and has been allocated 5,000,000 shares. The purchase price will be 95% of the Fair Market Value (as defined in the ESPP) of our common stock on the purchase date, and in any event will never be lower than the lower of 85% of the Fair Market Value of our common stock on the grant date or the purchase date. The first quarterly offering period under the ESPP is October 1, 2020 through December 31, 2020.