Share-Based Compensation

6 Months Ended

Dec. 31, 2024

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.

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

	Three Months Ended December 31,
(in millions)	2024		2023
Restricted share unit expense	$	18	$	17
Performance share unit expense	12		11
Total share-based compensation	$	30	$	28

	Six Months Ended December 31,
(in millions)	2024		2023
Restricted share unit expense	$	37	$	38
Performance share unit expense	23		19
Total share-based compensation	$	60	$	57

The total tax benefit related to share-based compensation was $4 million for the both the three months ended December 31, 2024 and 2023, and $7 million and $8 million for the six months ended December 31, 2024 and 2023, 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 Units	Weighted-Average Grant Date Fair Value per Share
Nonvested at June 30, 2024	1.7	$	70.98
Granted	0.7	108.08
Vested	(0.9)	72.25
Canceled and forfeited	—	—
Nonvested at December 31, 2024	1.5	$	84.19

At December 31, 2024, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested restricted share units not yet recognized was $95 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 and our total shareholder return relative to the S&P 500 Health Care Index, 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, 2024	1.3	$	97.03
Granted	0.5	113.88
Vested	(0.4)	108.81
Canceled and forfeited	—	—
Nonvested at December 31, 2024	1.4	$	99.28

At December 31, 2024, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized was $55 million, which is expected to be recognized over a weighted-average period of two years if performance goals are achieved.