Visa 2015 Annual Report Download - page 122

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
(1) Figures in the table may not recalculate exactly due to rounding. As-converted class A common
stock is calculated based on unrounded numbers.
(2) The class B to class A common stock conversion rate is presented on a rounded basis. Conversion
calculations for dividend payments are based on a conversion rate rounded to the tenth decimal.
Reduction in as-converted class A common stock. The following table presents share repurchases
in the open market during the following fiscal years:
(in millions, except per share data) 2015 2014
Shares repurchased in the open market(1) ........................... 44 79
Average repurchase price per share(2) ............................... $ 65.98 $ 52.12
Total cost ...................................................... $ 2,910 $ 4,118
(1) All shares repurchased in the open market have been retired and constitute authorized but unissued
shares.
(2) Figures in the table may not recalculate exactly due to rounding. Average repurchase price per share
is calculated based on unrounded numbers.
In October 2014, the Company’s board of directors authorized a $5.0 billion share repurchase
program. As of September 30, 2015, the program had remaining authorized funds of $2.8 billion. All
share repurchase programs authorized prior to October 2014 have been completed. In October 2015,
the Company’s board of directors authorized an additional $5.0 billion share repurchase program.
Under the terms of the retrospective responsibility plan, when the Company makes a deposit into
the litigation escrow account, the shares of class B common stock 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. These deposits have the same economic effect on earnings per share as repurchasing the
Company’s class A common stock, because it reduces the class B conversion rate and consequently
the as-converted class A common stock share count. See Note 3—U.S. Retrospective Responsibility
Plan and Potential Visa Europe Liabilities.
The following table presents as-converted class B common stock after deposits into the litigation
escrow account in fiscal 2014. There were no deposits into the litigation escrow account in fiscal 2015.
(in millions, except per share and conversion rate data) Fiscal 2014
Deposits under the U.S. retrospective responsibility plan ........................ $ 450
Effective price per share(1) ................................................. $ 53.83
Reduction in equivalent number of shares of class A common stock .............. 8
Conversion rate of class B common stock to class A common stock after deposits . . . 1.6483
As-converted class B common stock after deposits ............................ 405
(1) Effective price per share calculated using the volume-weighted average price of the Company’s
class A common stock over a pricing period in accordance with the Company’s current certificate of
incorporation.
Class B common stock. The class B common stock is not convertible or transferable until the date
on which all of the U.S. covered litigation has been finally resolved. This transfer restriction is subject to
limited exceptions, including transfers to other holders of class B common stock. After termination of
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