Visa 2010 Annual Report Download - page 119
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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 performance-based shares activity for fiscal 2010:
Shares
Weighted-
Average
Grant Date
Fair Value
Weighted-
Average
Remaining
Contractual
Term (in
years)
Aggregate
Intrinsic
Value(1)
(in millions)
Outstanding at October 1, 2009 295,736 $ 56.47
Granted 203,006 88.06
Vested (49,584) 56.47
Forfeited/expired (33,558) 72.14
Outstanding at September 30, 2010 415,600 $ 70.64 1.1 $ 31
(1) Calculated using the stock price at September 30, 2010 of $74.26 multiplied by the number of instruments.
Note 19—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
$59 million in fiscal 2010, and $77 million in each fiscal 2009 and 2008, respectively. Future minimum payments on leases and marketing and sponsorship
agreements per fiscal year, at September 30, 2010 are as follows:
(in millions) 2011 2012 2013 2014 2015 Thereafter Total
Operating leases $ 57 $ 36 $ 28 $ 14 $ 10 $ 12 $ 157
Capital leases 13 13 13 — — — 39
Marketing and sponsorships 110 106 96 100 68 105 585
Total $ 180 $ 155 $ 137 $ 114 $ 78 $ 117 $ 781
Certain sponsorship agreements require the Company to spend a certain amount for advertising and marketing promotion over the term of the contract
without specifying the exact year of spend. For these obligations, the Company has estimated the timing of when these amounts will be spent. In addition to
fixed payments stated above, 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 clients for various programs designed to build payments volume and increase the acceptance of its products. These
agreements, with original terms ranging from one to thirteen years, provide card issuance, and/or conversion, volume targets and marketing and program
support based on specific performance requirements. These agreements are designed to
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