Visa 2009 Annual Report Download - page 106

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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
each class and series of common stock based on each class' proportional ownership. Following the Company's IPO, net income is ascribed to each class and
series of common stock proportionally on an as-converted basis into class A common stock, after accretion has been allocated to the class C (series II)
common stock. The weighted number of shares of each class and series of common stock outstanding reflects changes in ownership over the periods. See
Note 15—Stockholders' Equity.
Diluted net income per share for each class and series of common stock is computed by dividing net income available by the weighted average number
of common stock and, if dilutive, potential class A common stock equivalent shares outstanding during the period consisting of incremental class A common
shares issuable upon the conversion of class B and class C common stock based on the conversion rate in effect through the period, exercise of employee
stock options, vesting of restricted share awards, restricted share units and performance shares to certain employees and directors.
For fiscal 2007, Visa U.S.A. was a non-stock corporation and therefore there was no comparable measure of net income per share.
The following table presents basic and diluted earnings per share for fiscal 2009.
Basic Earnings Per Share Diluted Earnings Per Share
(in millions, except per share data)
Classes and Series of
Common Stock
Income
Allocation
($) (A)
Weighted
Average
Shares
Outstanding (B)
Earnings per
Share ($) =
(A)/(B)
Income
Allocation
($) (A)
Weighted
Average
Shares
Outstanding (B)
Earnings per
Share ($) =
(A)/(B)
Common Stock Redeemed October 10, 2008:
Class C (series II) and class C (series III)(3) 4 Not presented Not presented 4 Not presented Not presented
Common Stock:
Class A(1) 1,401 451 3.11 2,350 758 3.10
Class B 487(2) 245 1.98 486(2) 245 1.98
Class C(3) 461 148 3.11 459 148 3.10
Net income $ 2,353
(1) The calculation of class A common stock diluted earnings per share assumes potential class A common stock equivalent shares outstanding, including
305 million incremental class A common shares issuable upon the conversion of class B and C common stock and 2 million dilutive stock options,
restricted stock units, restricted stock awards and performance shares. The computation of average dilutive shares outstanding excluded stock options to
purchase less than 1 million shares of common stock, and less than 1 million of restricted stock awards and restricted stock units in fiscal 2009. These
amounts were excluded because their effect would be antidilutive.
(2) Net income is attributed to each class and series of common stock on an as-converted basis. On an as-converted basis and for the purpose of calculating
net income allocated to each class and series of common stock, the weighted average numbers of shares of class B common stock outstanding is
157 million for fiscal 2009.
(3) Net income was attributed to the redeemed common stock for the period during which they were outstanding. See Note 15—Stockholders' Equity.
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