Visa 2009 Annual Report Download - page 110

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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
Compensation expense for the performance awards is initially estimated based on target performance and is adjusted as appropriate throughout the
performance period. The performance shares vest in two equal installments on the second and the third anniversary from the date of grant, subject to earlier
vesting in full under certain conditions. At September 30, 2009, there was $8 million of total unrecognized compensation cost related to non-vested
performance-based shares.
The following table summarizes the Company's performance-based shares activity for fiscal 2009:
Shares
Weighted-
Average
Grant Date
Fair Value
Weighted-
Average
Remaining
Contractual
Term (in
years)
Aggregate
Intrinsic
Value(1)
(in millions)
Outstanding at October 1, 2008 —
Granted 300,960
Vested
Forfeited/expired (5,224)
Outstanding at September 30, 2009 295,736 $ 56.47 2.1 $ 20
(1) Calculated using the stock price at September 30, 2009 of $69.11 multiplied by the number of instruments.
Note 18—Commitments and Contingencies
Commitments
The Company leases certain premises and equipment throughout the world with varying expiration dates. The Company incurred total rent expense of
$77 million in fiscal 2009 and 2008, and Visa U.S.A. incurred total rent expense of $39 million in fiscal 2007. The Company's future minimum payments on
leases and marketing and sponsorship agreements per fiscal year, at September 30, 2009 were as follows:
(in millions) 2010 2011 2012 2013 2014 Thereafter Total
Operating Leases $ 42 $ 35 $ 26 $ 18 $ 6 $ 14 $ 141
Capital Leases 12 13 13 13 — — 51
Marketing and Sponsorships 150 122 117 82 80 7 558
Total $ 204 $ 170 $ 156 $ 113 $ 86 $ 21 $ 750
In addition to fixed payments included in the above table, certain sponsorship agreements require the Company to undertake marketing, promotional or
other activities up to stated monetary values to support events which the Company is sponsoring. The stated monetary value of these activities typically
represents the value in the marketplace, which may be significantly in excess of the actual costs incurred by the Company.
Volume and Support Incentives
The Company has agreements with customers for various programs designed to build payments volume and increase the acceptance of its products.
These agreements, with original terms ranging
109