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STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION (Tables)

6 Months Ended

Jan. 03, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Classification of Share-based Compensation Expense

The following table summarizes the amounts and classification of share-based compensation expense:



	Two Quarters Ended			Fiscal Years Ended
	January 3, 2020			June 28, 2019			June 29, 2018			June 30, 2017

	(In millions)
Total expense	$	125		$	58		$	51		$	42
Included in:
Cost of product sales and services	$	5		$	12		$	8		$	3
Engineering, selling and administrative expenses	120			46			43			39
Income from continuing operations	125			58			51			42
Tax effect on share-based compensation expense	(31		)	(14		)	(16		)	(16		)
Total share-based compensation expense after-tax	$	94		$	44		$	35		$	26

Schedule of Assumptions Used In Calculating Fair Value of Stock Option Grants

A summary of the significant assumptions used in determining the fair value of stock option grants under our L3Harris SIPs is as follows:



	Two Quarters Ended		Fiscal Years Ended
	January 3, 2020		June 28, 2019		June 29, 2018		June 30, 2017

Expected dividends	1.70	%	1.61	%	1.80	%	2.36	%
Expected volatility	22.18	%	19.87	%	19.30	%	21.78	%
Risk-free interest rates	1.68	%	2.72	%	1.80	%	1.23	%
Expected term (years)	5.65		5.03		5.00		5.03

Schedule of Stock Option Activity

A summary of stock option activity under our L3 Harris SIPs as of January 3, 2020 and changes during the two quarters ended January 3, 2020 is as follows:



	Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value

					(In years)	(In millions)
Stock options outstanding June 28, 2019	4,195,201		$	80.86
Granted	738,956		$	204.85
Exercised	(1,654,558	)	$	79.35
Other — L3Harris Merger⁽¹⁾	1,266,379		$	112.83
Stock options outstanding January 3, 2020	4,545,978		$	110.48	6.26	$	454.57
Stock options exercisable January 3, 2020	3,807,022		$	92.16	5.61	$	450.42

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(1)	Represents L3 stock options converted to L3Harris stock options in accordance with the Merger Agreement.

Schedule of Nonvested Stock Options Activity

A summary of the status of our nonvested stock options at January 3, 2020 and changes during the two quarters ended January 3, 2020 is as follows:



	Shares		Weighted-Average Grant-Date Fair Value Per Share

Nonvested stock options June 28, 2019	856,753		$	20.28
Granted	738,956		$	38.61
Vested	(856,753	)	$	20.28
Nonvested stock options January 3, 2020	738,956		$	38.61

Schedule of Restricted Stock and Restricted Stock Units Activity

A summary of the status of these awards at January 3, 2020 and changes during the two quarters ended January 3, 2020 is as follows:



	Shares or Units		Weighted-Average Grant Price Per Share or Unit

Restricted stock and restricted stock units outstanding at June 28, 2019	365,998		$	134.06
Granted	260,167		$	204.62
Vested	(503,069	)	$	149.39
Forfeited	(16,916	)	$	193.20
Other — L3Harris Merger⁽¹⁾	429,587		$	189.13
Restricted stock and restricted stock units outstanding at January 3, 2020	535,767		$	196.22

_______________


(1)	Represents L3 share-based awards converted to L3Harris restricted stock units in accordance with the Merger Agreement.

Schedule of Performance Shares Activity

A summary of the status of these awards at January 3, 2020 and changes during the two quarters ended January 3, 2020 is as follows:



	Shares or Units		Weighted-Average Grant Price Per Share or Unit

Performance share units outstanding at June 28, 2019	509,749		$	126.73
Granted	55,020		$	204.85
Performance based adjustment⁽¹⁾	326,656		$	129.84
Vested	(836,405	)	$	127.94
Performance share units outstanding at January 3, 2020	55,020		$	204.85

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(1)	Represents adjustments for performance conditions that impact the number of shares that vest. All awards with such criteria automatically vested upon the closing of the L3Harris Merger.