Visa 2014 Annual Report Download - page 122

Download and view the complete annual report

Please find page 122 of the 2014 Visa annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 161

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161

VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2014
The following table presents share repurchases in the open market during the following fiscal
years:
(in millions, except per share data) 2014 2013
Shares repurchased in the open market (1) ............................ 20 33
Average repurchase price per share (2) ............................... $ 208.50 $ 161.94
Total cost ....................................................... $ 4,118 $ 5,365
(1) All shares repurchased in the open market have been retired and constitute authorized but unissued
shares.
(2) Figures in table may not recalculate due to rounding. Average repurchase price per share is
calculated based on unrounded numbers.
The stock repurchases and litigation escrow deposit discussed above reduced the funds from the
$5.0 billion share repurchase program authorized by the Company’s board of directors in October
2013. As of September 30, 2014, the program had remaining authorized funds of $682 million. All
share repurchase programs authorized prior to October 2013 have been completed. In October 2014,
the Company’s board of directors authorized an additional $5.0 billion share repurchase program.
Under the terms of the retrospective responsibility plan, when the Company makes a deposit into
the litigation escrow account, the shares of class B common stock are subject to dilution through an
adjustment to the conversion rate of the shares of class B common stock to shares of class A common
stock.
The following table presents as-converted class B common stock after deposits into the litigation
escrow account in fiscal 2014. There were no deposits into the litigation escrow account in fiscal 2013.
Fiscal 2014
(in millions, except per share and conversion rate data) September 2014
Deposits under the retrospective responsibility plan ..................... $ 450
Effective price per share(1) .......................................... $ 215.33
Reduction in equivalent number of shares of class A common stock ........ 2
Conversion rate of class B common stock to class A common stock after
deposits ......................................................... 0.4121
As-converted class B common stock after deposits ...................... 101
(1) Effective price per share calculated using the volume-weighted average price of the Company’s
class A common stock over a pricing period in accordance with the Company’s current certificate of
incorporation.
Class B common stock. The class B common stock is not convertible or transferable until the date
on which all of the covered litigation has been finally resolved. This transfer restriction is subject to
limited exceptions, including transfers to other holders of class B common stock. After termination of
the restrictions, the class B common stock will be convertible into class A common stock if transferred
108