Employee Benefit Plans

6 Months Ended

Dec. 31, 2019

Employee Benefit PlansStock-based Compensation Plans. Stock-based compensation consists of the following:

The Company's share-based compensation consists of stock options, time-based restricted stock, time-based restricted stock units, performance-based restricted stock, and performance-based restricted stock units. The Company also offers an employee stock purchase plan for eligible employees.

The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock awards. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program. In November 2019, the Board of Directors authorized the repurchase of $5 billion of our common stock, replacing in its entirety the previous 2015 authorization to purchase up to 25 million shares of our common stock. The Company repurchased 1.8 million and 2.2 million shares in the three months ended December 31, 2019 and 2018, respectively, of which $155.4 million in the three months ended December 31, 2019 were repurchased under the November 2019 authorization. The Company repurchased 3.7 million and 3.8 million shares in the six months ended December 31, 2019 and 2018, respectively. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions.

The following table represents pre-tax stock-based compensation expense for the three and six months ended December 31, 2019 and 2018, respectively:



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2019		2018		2019		2018
Operating expenses	$	3.4	$	3.4	$	7.4	$	8.8
Selling, general and administrative expenses	28.0		30.4		56.3		58.4
System development and programming costs	4.8		4.8		9.6		9.8
Total stock-based compensation expense	$	36.2	$	38.6	$	73.3	$	77.0

The methods and assumptions used in the determination of the fair value of stock-based awards are consistent with those described in the Company's Form 10-K for fiscal 2019. See the Company's Annual Report on Form 10-K for fiscal 2019 for a detailed description of the Company's stock-based compensation awards and employee stock purchase plan, including information related to vesting terms, service and performance conditions, payout percentages, and process for estimating the fair value of stock options granted.

Pension Plans

The components of net pension expense were as follows:



	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2019			2018			2019			2018
Service cost – benefits earned during the period	$	14.9		$	14.9		$	29.9		$	29.9
Interest cost on projected benefits	15.4			19.7			30.9			39.3
Expected return on plan assets	(29.5		)	(33.0		)	(59.0		)	(65.9		)
Net amortization and deferral	1.5			—			2.9			0.1
Settlement charges and special termination benefits	—			12.8			(5.1		)	28.1
Net pension expense	$	2.3		$	14.4		$	(0.4	)	$	31.5

In fiscal 2018, the Company offered a Voluntary Early Retirement Program (“VERP”) to certain eligible U.S.-based associates aged 55 or above with at least 10 years of service. During the three and six months ended December 31, 2018, the Company recorded $12.8 million and $28.1 million, respectively, of non-cash settlement charges and special termination benefits.