Visa 2008 Annual Report Download - page 163

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
Class C (series II) common stock is not convertible into shares of class A common stock and class C (series III) redemption shares are not convertible
into shares of class A common stock subsequent to the IPO.
Certain members of our board of directors, who are also employees of our financial institution customers, received restricted stock awards that convert
into class C (series I) shares upon vesting. The calculation of class C (series I) common stock diluted earnings per share considers incremental class C (series
I) shares outstanding.
The dilutive effect of outstanding stock options, restricted shares and restricted share units is reflected in diluted earnings per share by application of the
treasury stock method under the guidelines of SFAS 128.
No potential common shares existed for any other class or series of common stock other than class A and class C (series I) common stock. The
calculation of diluted earnings per share for all classes and series of common stock other than class A common stock assumes no conversion of any class B or
class C common stock into class A common stock during the period. Net income attributable to each class and series of common stock other than class A
common stock in the calculation of diluted earnings per share is reduced proportionately by the number of potential class A equivalent common shares
underlying employee stock options, restricted shares and restricted share units.
Calculation of the Numerator—Diluted Earnings Per Share
The following tables calculate net income allocated to each series and class of common stock in the calculation of diluted earnings per share for the year
ended September 30, 2008.
(in millions)
Net income attributable to common stock classified in stockholders' equity $ 742
Income and accretion allocated to class C (series II) common stock classified in temporary equity 44
Income allocated to class C (series III) common stock classified as a liability 18
Net income $ 804
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