Visa 2008 Annual Report Download - page 167

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
for those awards expected to vest using an estimated forfeiture rate based on actual and trended forfeiture data and employee attrition rates.
The following table summarizes the Company's option activity for the year ended September 30, 2008:
Options
Weighted-
Average
Exercise Price
Per Share
Weighted
Average
Remaining
Contractual
Term (in
years)
Aggregate
Exercise
Price
Aggregate
Intrinsic
Value(1)
(in millions)
Outstanding at October 1, 2007 — —
Granted 9,000,066 $ 44.11
Forfeited/expired (78,686) 44.00
Exercised — —
Outstanding at September 30, 2008 8,921,380 $ 44.11 9.5 $ 394 $ 154
Vested and Exercisable at September 30, 2008 195,992 $ 44.00 9.5 $ 9 $ 3
(1) Intrinsic value is calculated using the stock price at September 30, 2008 of $61.39 less the option exercise price, multiplied by the number of
instruments.
As of September 30, 2008, there was $106 million of total unrecognized compensation cost related to non-vested options. The cost is expected to be
recognized over a weighted average period of approximately 2.5 years.
Restricted Stock Awards and Restricted Stock Units
In fiscal 2007, the Company instituted a special broad-based bonus program ("special bonus") for all eligible employees to reward performance during
the Company's reorganization. Half of the special bonus was paid through RSA and RSU awards which vest one year after the completion of the IPO and may
be subject to earlier vesting under certain conditions including death, disability or retirement.
In connection with the IPO, the Company also granted RSA and RSU awards to employees. These awards share the same terms and conditions as
awards granted in connection with the special bonus. Additional RSAs were issued in May 2008 and August 2008 which vest in three equal installments on
each of the first three anniversaries of the date of grant, subject to earlier vesting in full under certain conditions including death, disability or retirement.
The RSA and RSU awards granted to the Company's non-employee directors vest on the first anniversary of the Company's IPO, subject to earlier
vesting in full under certain conditions specified in the award agreement and EIP.
Upon vesting, the RSA awards 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
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