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Table of Contents VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2012
For the options exercised during fiscal 2012 , 2011 and 2010 , the total intrinsic value was $247 million , $77 million and $42
million , respectively, and the tax benefit realized was $86 million , $28 million and $15 million , respectively. As of September 30,
2012 , there was $17 million of total unrecognized compensation cost related to unvested options, which is expected to be
recognized over a weighted-average period of approximately 0.9 years.
Restricted Stock Awards and Restricted Stock Units
RSAs and RSUs issued under the EIP primarily 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 2012 , 2011
and 2010 was $96.39 , $79.80 and $79.58 , respectively. The weighted-average grant-date fair value of RSUs granted during fiscal
2012 , 2011 and 2010 was $96.97 , $79.97 and $79.59 , respectively. The total grant-date fair value of RSAs and RSUs vested
during fiscal 2012 , 2011 and 2010 was $81 million , $55 million and $32 million , respectively.
The following table summarizes the Company's RSA and RSU activity for fiscal 2012 :
96
Options
Weighted-
Average
Exercise Price
Per Share
Weighted-
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic
Value
(1)
(in millions)
Outstanding at October 1, 2011
8,554,389
$
52.81
Granted
441,191
93.22
Forfeited
(140,590
)
72.90
Exercised
(3,669,315
)
47.50
Outstanding at September 30, 2012
5,185,675
59.46
6.1
$388
Options exercisable at September 30, 2012
3,746,662
51.98
5.6
$308
Options exercisable and expected to be vested at
September 30, 2012
(2)
5,039,896
$
58.92
6.1
$380
(1)
Calculated using the closing stock price on the last trading day of fiscal 2012 of $134.28 , less the option exercise price,
multiplied by the number of instruments.
(2)
Applies a forfeiture rate to unvested options outstanding at September 30, 2012 to estimate the number expected to vest in the
future.