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Share-Based Compensation
 12 Months Ended
Jun. 30, 2021
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation
14. Share-Based Compensation
We maintain stock incentive plans (collectively, the “Plans”) for the benefit of certain of our officers, directors and employees. At June 30, 2021, 9 million shares remain available for future grants under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan ("2011 LTIP"). Under the 2011 LTIP's fungible share counting provisions, stock options are counted against the plan as one share for every share issued; awards other than stock options are counted against the plan as two and one-half shares for every share issued. This means that only 3 million shares could be issued under awards other than stock options while 9 million shares could be issued under stock options. Shares are issued out of treasury shares when stock options are exercised and when restricted share units and performance share units vest.
The following table provides total share-based compensation expense by type of award:
(in millions)202120202019
Restricted share unit expense$73 $70 $63 
Employee stock option expense— 3 10 
Performance share unit expense16 17 9 
Total share-based compensation expense
$89 $90 $82 
The total tax benefit related to share-based compensation was $12 million, $16 million and $16 million for fiscal 2021, 2020 and 2019, respectively.
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 UnitsWeighted-Average
Grant Date Fair
Value per Share
Nonvested at June 30, 20192 $51.65 
Granted2 42.71 
Vested(1)60.21 
Canceled and forfeited— — 
Nonvested at June 30, 20203 45.92 
Granted2 53.76 
Vested(1)49.37 
Canceled and forfeited(1)48.74 
Nonvested at June 30, 20213 $49.05 
The following table provides additional data related to restricted share unit activity:
(in millions)202120202019
Total compensation cost, net of estimated forfeitures, related to nonvested restricted share and share unit awards not yet recognized, pre-tax$73 $77 $75 
Weighted-average period in years over which restricted share and share unit cost is expected to be recognized (in years)222
Total fair value of shares vested during the year$70 $57 $68 
Stock Options
Until the end of fiscal 2018, stock options were granted to our officers and certain employees. There were no stock options granted to employees during fiscal year 2021, 2020 or 2019. Employee stock options granted under the Plans generally vest in equal annual installments over three years and are exercisable for a period up 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, 20196 $63.78 
Granted— — 
Exercised(1)42.36 
Canceled and forfeited— — 
Outstanding at June 30, 20205 65.15 
Granted— — 
Exercised(1)43.08 
Canceled and forfeited— — 
Outstanding at June 30, 20214 $68.46 
Exercisable at June 30, 20214 $68.62 
The following table provides additional detail related to stock options:
(in millions, except per share amounts)202120202019
Aggregate intrinsic value of outstanding options at period end$11 $12 $10 
Aggregate intrinsic value of exercisable options at period end11 12 10 
Aggregate intrinsic value of exercised options10 8 1 
Net proceeds/(withholding) from share-based compensation32 26 3 
Excess tax benefits from share based compensation(5)6 7 
Total compensation cost, net of estimated forfeitures, related to unvested stock options not yet recognized, pre-tax— 1 5 
Total fair value of shares vested during the year3 8 20 
Weighted-average grant date fair value per stock option$12.94 $8.26 $8.34 
(in years)202120202019
Weighted-average remaining contractual life of outstanding options455
Weighted-average remaining contractual life of exercisable options455
Weighted-average period over which stock option compensation cost is expected to be recognized211
The fair values were estimated on the grant date using a lattice valuation model. We believe the lattice model provides reasonable estimates because it has the ability to take into account individual exercise patterns based on changes in our stock price and other variables, and it provides for a range of input assumptions, which are disclosed in the table below. The risk-free rate is based on the U.S. Treasury yield curve at the time of the grant. We analyzed historical data to estimate option exercise behaviors and employee terminations to be used within the lattice model. The expected life of the options granted was calculated from the option valuation model and represents the length of time in years that the options granted are expected to be outstanding. Expected volatilities are based on implied volatility from traded options on our common shares and historical volatility over a period of time commensurate with the contractual term of the option grant (up to ten years).
Performance Share Units
Performance share units generally vest over a 3-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 240 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, 20190.9 $51.45 
Granted0.7 44.03 
Vested(0.1)48.40 
Canceled and forfeited(0.2)50.92 
Nonvested at June 30, 20201.3 54.24 
Granted0.4 55.45 
Vested(0.1)42.72 
Canceled and forfeited(0.4)53.71 
Nonvested at June 30, 20211.2 $54.89 

The following table provides additional data related to performance share unit activity:
(in millions)202120202019
Total compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized, pre-tax$26 $29 $12 
Weighted-average period over which performance share unit cost is expected to be recognized (in years)222
Total fair value of shares vested during the year$1 $5 $— 
Employee Retirement Savings Plans
Substantially all of our domestic non-union employees are eligible to be enrolled in our company-sponsored contributory retirement savings plans, which include features under Section 401(k) of the Internal Revenue Code of 1986, and provide for matching and discretionary contributions by us. The total expense for our employee retirement savings plans was $55 million, $66 million and $99 million for fiscal 2021, 2020 and 2019, respectively.