Visa 2010 Annual Report Download - page 43

Table of Contents
U.S. clients and their affiliates are subject to dilution through an adjustment to the conversion rate of the shares of class B common stock to shares of class A
common stock. On an as-converted basis, funding of the escrow account had the effect of our repurchasing approximately 7 million shares and 11 million
shares of class A common stock, respectively. See Note 4—Retrospective Responsibility Plan to our consolidated financial statements.
Share repurchase plan. In October 2009, our board of directors authorized a $1.0 billion share repurchase plan. As of September 30, 2010, we have
drawn on the entire $1.0 billion authorized amount by repurchasing a total of 12.9 million shares of our class A common stock at an average price of $77.48
per share. In October 2010, subsequent to our fiscal year end, our board of directors authorized a second $1.0 billion share repurchase plan, which will be in
place through September 30, 2011, subject to extension or expansion at the determination of our board of directors. See the Liquidity and Capital Resources
section for further discussion.
Expansion of our eCommerce capabilities. On July 21, 2010, we completed our acquisition of CyberSource Corporation, a leading provider of
electronic payment, risk management and payment security solutions to online merchants, at a price of $26.00 per share. The total purchase consideration was
approximately $2.0 billion, paid with cash on hand. The acquisition of CyberSource will expand our online payment, fraud and security management
capabilities and is expected to accelerate our growth in the eCommerce category. The results of CyberSource are included in our results from the acquisition
date. See Note 6—CyberSource Acquisition to our consolidated financial statements.
Nominal payments volume and transaction counts. We believe that payments volume and processed transactions are key drivers of our business.
Payments volume is the basis for service revenues and processed transactions are the basis for data processing revenues. The growth in nominal payments
volume in fiscal 2010 compared to fiscal 2009, in particular credit and debit, was primarily driven by growth outside the U.S. Comparing fiscal 2009 with
fiscal 2008, nominal payments volume declined in credit and commercial products, which was offset by growth in debit resulting in minimal year-over-year
nominal payments volume impact.
The number of processed transactions continues to increase reflecting the continued shift to electronic payments globally.
The payments volume and processed transactions tables presented below do not include CyberSource volumes and transactions. CyberSource activities
primarily contribute to our data processing revenues, which is discussed below in Results of Operations.
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