Visa 2011 Annual Report Download - page 118

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2011
(in millions, except as noted)
(1) Includes 76,822 options granted in connection with the acquisition of PlaySpan. See Note 5—Acquisitions.
(2) Include options exercisable and those expected to be vested, reflecting estimated forfeitures.
(3) Calculated using the closing stock price on the last trading day of fiscal 2011 of $85.72, less the option exercise price, multiplied by the number of
instruments. The aggregate intrinsic value excludes stock options with an option exercise price greater than $85.72.
For the options exercised during fiscal 2011, 2010 and 2009, the total intrinsic value was $77 million, $42 million and $16 million, respectively, and the
tax benefit realized was $28 million, $15 million and $5 million, respectively.
As of September 30, 2011, there was $35 million of total unrecognized compensation cost related to unvested options, which is expected to be
recognized over a weighted average period of approximately 1.3 years.
Restricted Stock Awards and Restricted Stock Units
RSAs and RSUs issued under the EIP generally vest ratably over three years from the date of grant, subject to earlier vesting in full under certain
conditions.
Upon vesting, the RSAs are settled in class A common stock on a one-for-one basis. During the vesting period, RSA award recipients are eligible to
receive dividends and participate in the same voting rights as those granted to the holders of the underlying class A common stock. Upon vesting, RSUs can
be settled in class A common stock on a one-for-one basis or in cash, or a combination thereof, at the Company's option. The Company does not currently
intend to settle any RSUs in cash. During the vesting period, RSU award recipients are eligible to receive dividend equivalents but do not participate in the
voting rights granted to the holders of the underlying class A common stock.
The fair value and compensation cost before estimated forfeitures for RSAs and RSUs is calculated using the closing price of class A common stock on
the date of grant. The weighted-average grant-date fair value of RSAs granted during fiscal 2011, 2010 and 2009 was $79.80, $79.58 and $56.46, respectively.
The weighted-average grant-date fair value of RSUs granted during fiscal 2011, 2010 and 2009 was $79.97, $79.59 and $56.64, respectively. The total fair
value of RSAs and RSUs vested during fiscal 2011, 2010 and 2009 was $55 million, $32 million and $78 million, respectively.
The following table summarizes the Company's RSA and RSU activity for fiscal 2011:
Restricted Stock
Weighted-
Average
Grant Date
Fair Value
Weighted-
Average
Remaining
Contractual
Term (in
years)
Aggregate
Intrinsic
Value(1)
(in millions)
Awards Units RSA RSU RSA RSU RSA RSU
Outstanding at October 1, 2010 1,567,207 370,638 $ 68.84 $ 70.60
Granted 981,844 300,414 79.80 79.97
Vested (656,157) (163,021) 66.84 69.55
Forfeited/expired (106,919) (40,228) 74.10 75.69
Outstanding at September 30, 2011 1,785,975 467,803 $ 75.28 $ 76.65 1.5 1.4 $ 153 $ 40
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