Visa 2010 Annual Report Download - page 117

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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2010
(in millions, except as noted)
The following table summarizes the Company's option activity for fiscal 2010:
Options
Weighted-
Average
Exercise Price
Per Share
Weighted
Average
Remaining
Contractual
Term (in
years)
Aggregate
Intrinsic
Value(1)
(in millions)
Outstanding at October 1, 2009 9,090,276 $ 45.81
Granted 2,592,873 $ 59.97
Forfeited/expired (510,039) $ 51.83
Exercised (1,230,731) $ 44.97
Outstanding at September 30, 2010 9,942,379 $ 49.30 7.3 $ 253
Options exercisable at September 30, 2010 4,471,580 $ 45.77 7.5 $ 128
Options exercisable and expected to be vested at September 30, 2010(2 ) 9,264,101 $ 49.18 7.3 $ 237
(1) Calculated using the stock price at September 30, 2010 of $74.26 less the option exercise price, multiplied by the number of instruments. The aggregate
intrinsic value excludes stock options with an option exercise price greater than $74.26.
(2) Include options exercisable and those expected to be vested, reflecting estimated forfeitures.
For the options exercised during fiscal 2010 and 2009, the total intrinsic value was $42 million and $16 million, respectively, and the tax benefit
realized was $15 million and $5 million, respectively. There were no options exercised during fiscal 2008.
As of September 30, 2010, there was $71 million of total unrecognized compensation cost related to non-vested options, which is expected to be
recognized over a weighted average period of approximately 1.2 years.
Restricted Stock Awards and Restricted Stock Units
RSAs and RSUs issued under the EIP generally vest ratably over three years from the date of grant, subject to earlier vesting in full under certain
conditions.
Upon vesting, the RSAs 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 vesting, RSUs can
be settled in class A common stock on a one-for-one basis or in cash, or a combination thereof, at the Company's option. The Company does not currently
intend to settle any RSUs in cash. During the vesting period, RSU award recipients are eligible to receive dividend equivalents but do not participate in the
voting rights granted to the holders of the underlying class A common stock.
The fair value and compensation cost before estimated forfeitures for RSAs and RSUs is calculated using the closing price of class A common stock on
the date of grant. The total fair value of RSAs and RSUs vested during fiscal 2010 and 2009 was $32 million and $78 million, respectively. There were no
RSAs or RSUs vested in fiscal 2008.
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