Visa 2009 Annual Report Download - page 107

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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
The following table presents basic and diluted earnings per share for fiscal 2008.
Basic Earnings Per Share Diluted Earnings Per Share
(in millions, except per share data)
Converted 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)
Participating Common Stock Classified as a Liability:
Class C (series III) 18 19 Not presented 18 19 Not presented
Common Stock Classified as Temporary Equity:
Class C (series II) 44 56 0.79 44 56 0.79
Common Stock Classified as Stockholders' Equity:
Class A 232 239 0.96 742 769 0.96
Class B 285(1) 333 0.85 283(1) 333 0.85
Class C (series I) 183 191 0.96 183 191 0.96
Class C (series III & IV) 42 44 0.96 42 44 0.96
Net income $ 804
(1) Net income is attributed to each class and series of common stock on an as-converted basis. For the period subsequent to the IPO, net income attributed
to class B common stock reflects its conversion rate during that period of 0.7143 shares of class A common stock for each share of class B common
stock. On an as-converted basis and for the purpose of calculating net income allocated, the weighted average number of shares of class B common
stock outstanding for fiscal 2008 is 295 million.
Note 17—Share-based Compensation
The Company's 2007 Equity Incentive Compensation Plan ("the "EIP") authorizes the compensation committee of the board of directors to grant non-
qualified stock options ("options"), restricted stock awards ("RSAs"), restricted stock units ("RSUs") and performance-based shares to its employees and non-
employee directors, for up to 59,000,000 shares of class A common stock. Shares available for award may be either authorized and unissued or previously
issued shares subsequently acquired by the Company. The EIP will continue in effect until all of the common stock available under the EIP is delivered and
all restrictions on those shares have lapsed, unless the EIP is terminated earlier by the Company's board of directors. No awards may be granted under the plan
on or after 10 years from its effective date.
Related compensation expense is recorded net of estimated forfeitures on a straight-line basis for awards with service only conditions, and on a graded-
vesting basis for awards with both service and performance conditions. The Company's estimated forfeiture rate is based on actual and trended forfeiture data
and employee attrition rates. For fiscal 2009 and 2008, the Company recorded share-based compensation expense of $115 million and $74 million,
respectively, in personnel on its consolidated statement of operations. The amount of capitalized share-based compensation expense is immaterial during
fiscal 2009 and 2008.
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