Share-Based Compensation and Savings Plans

6 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation and Savings Plans

Share-Based Compensation

Share-Based Compensation Plans

We maintain stock incentive plans (collectively, the “Plans”) for the benefit of certain of our officers, directors, and employees.

The following tables provide total share-based compensation expense by type of award:

	Three Months Ended December 31
(in millions)	2015		2014
Restricted share unit expense	$	17	$	18
Employee stock option expense	5		5
Performance share unit expense	4		5
Total share-based compensation	$	26	$	28

	Six Months Ended December 31
(in millions)	2015		2014
Restricted share unit expense	$	35	$	34
Employee stock option expense	10		10
Performance share unit expense	11		9
Total share-based compensation	$	56	$	53

The total tax benefit related to share-based compensation was $9 million for both the three months ended December 31, 2015 and 2014, and $19 million and $18 million for the six months ended December 31, 2015 and 2014, respectively.

Stock Options

Employee stock options granted under the Plans generally vest in equal annual installments over three years and are exercisable for periods ranging from seven to ten years from the grant date. All stock options are exercisable at a price equal to the market value of the common shares underlying the option on the grant date.

The following table summarizes all stock option transactions under the Plans:

(in millions, except per share amounts)	Stock Options		Weighted-Average Exercise Price per Common Share
Outstanding at June 30, 2015	8		$	46.50
Granted	1		84.19
Exercised	(1	)	40.31
Canceled and forfeited	—		—
Outstanding at December 31, 2015	8		$	53.45
Exercisable at December 31, 2015	5		$	42.05

At December 31, 2015, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested stock options not yet recognized was $32 million, which is expected to be recognized over a weighted-average period of two years. The following table provides additional detail related to stock options:

(in millions, except per share amounts)	December 31, 2015		June 30, 2015
Aggregate intrinsic value of outstanding options at period end	$	277	$	281
Aggregate intrinsic value of exercisable options at period end	233		193
Weighted-average remaining contractual life of outstanding options (in years)	7		6
Weighted-average remaining contractual life of exercisable options (in years)	5		5

Restricted Share Units

Restricted share units granted under the Plans generally vest in equal annual installments over three years. Restricted share units accrue cash dividend equivalents that are payable upon vesting of the awards.

The following table summarizes all transactions related to restricted share units under the Plans:

(in millions, except per share amounts)	Restricted Share Units		Weighted-Average Grant Date Fair Value per Share
Nonvested at June 30, 2015	3		$	59.69
Granted	1		84.22
Vested	(1	)	53.96
Canceled and forfeited	—		—
Nonvested at December 31, 2015	3		$	70.84

At December 31, 2015, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested restricted share units not yet recognized was $109 million, which is expected to be recognized over a weighted-average period of two years.

Performance Share Units

Performance share units vest over a three-year performance period based on achievement of specific performance goals. Based on the extent to which the targets are achieved, vested shares may range from zero to 200 percent of the target award amount. Performance share units accrue cash dividend equivalents that are payable upon vesting of the awards.

The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts):

(in millions, except per share amounts)	Performance Share Units		Weighted-Average Grant Date Fair Value per Share
Nonvested at June 30, 2015	0.9		$	50.31
Granted	0.3		84.26
Vested (1)	(0.4	)	39.81
Canceled and forfeited	—		—
Nonvested at December 31, 2015	0.8		$	62.61

(1) Vested based on achievement of 133 percent of the target performance goal.

At December 31, 2015, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized was $22 million, which is expected to be recognized over a weighted-average period of two years.