Visa 2015 Annual Report Download - page 127

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
For the options exercised during fiscal 2015, 2014 and 2013, the total intrinsic value was $134
million, $187 million and $176 million, respectively, and the tax benefit realized was $86 million, $65
million and $59 million, respectively. As of September 30, 2015, 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 1.4 years.
Restricted Stock Awards and Restricted Stock Units
RSAs and RSUs issued under the EIP primarily vest ratably over 3 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 2015, 2014 and 2013 was $63.71, $49.98 and $36.80,
respectively. The weighted-average grant-date fair value of RSUs granted during fiscal 2015, 2014 and
2013 was $62.88, $49.44 and $36.55, respectively. The total grant-date fair value of RSAs and RSUs
vested during fiscal 2015, 2014 and 2013 was $132 million, $126 million and $98 million, respectively.
The following table summarizes the Company’s RSA and RSU activity for fiscal 2015:
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,
2014 ................... 5,234,184 1,866,932 $40.00 $39.69
Granted ................ 2,145,439 753,733 $63.71 $62.88
Vested ................. (2,702,580) (1,005,707) $35.50 $35.43
Forfeited ................ (612,356) (172,436) $48.32 $47.86
Outstanding at
September 30, 2015 . ..... 4,064,687 1,442,522 $54.09 $53.80 1.5 1.4 $283 $100
(1) Calculated by multiplying the closing stock price on the last trading day of fiscal 2015 of $69.66 by
the number of instruments.
At September 30, 2015, there was $138 million and $38 million of total unrecognized
compensation cost related to unvested RSAs and RSUs, respectively, which is expected to be
recognized over a weighted-average period of approximately 1.5 years for RSAs and 1.4 years for
RSUs.
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