Share-based Compensation (Tables)
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12 Months Ended |
Sep. 30, 2015 |
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| Share-based Compensation [Abstract] |
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| Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used |
During fiscal 2015, 2014 and 2013, the fair value of each stock option was estimated on the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: | | | | | | | | | | | | | | | | 2015 | | 2014 | | 2013 | Expected term (in years)(1) | | 4.55 |
| | 4.80 |
| | 6.08 |
| Risk-free rate of return(2) | | 1.5 | % | | 1.3 | % | | 0.8 | % | Expected volatility(3) | | 22.0 | % | | 25.2 | % | | 29.3 | % | Expected dividend yield(4) | | 0.8 | % | | 0.8 | % | | 0.9 | % | Fair value per option granted | | $ | 12.04 |
| | $ | 11.03 |
| | $ | 9.76 |
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| | (1) | Beginning in fiscal 2014, assumption is based on the Company's historical option exercises and those of a set of peer companies that management believes is generally comparable to Visa. The Company's data is weighted based on the number of years between the measurement date and Visa's initial public offering as a percentage of the options' contractual term. The relative weighting placed on Visa's data and peer data in fiscal 2015 was approximately 67% and 33%, respectively, and the relative weighting in fiscal 2014 was 58% and 42%, respectively. In fiscal 2013, assumption was fully based on peer companies' data. |
| | (2) | Based upon the zero coupon U.S. treasury bond rate over the expected term of the awards. |
| | (3) | Based on the Company’s implied and historical volatility. The expected volatilities ranged from 21% to 23% in fiscal 2015. In fiscal 2013, historical volatility was a blend of Visa's historical volatility and those of comparable peer companies. The relative weighting between Visa historical volatility and the historical volatility of the peer companies was based on the percentage of years Visa stock price information is available since its initial public offering compared to the expected term. |
| | (4) | Based on the Company’s annual dividend rate on the date of grant. |
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| Schedule of Share-based Compensation, Options Activity |
The following table summarizes the Company’s option activity for fiscal 2015: | | | | | | | | | | | | | Options | | Weighted- Average Exercise Price Per Share | | Weighted- Average Remaining Contractual Term (in years) | | Aggregate Intrinsic Value (1) (in millions) | Outstanding at October 1, 2014 | 11,649,704 |
| | $ | 22.52 |
| | | | | Granted | 1,444,376 |
| | $ | 62.87 |
| | | | | Forfeited | (379,662 | ) | | $ | 50.53 |
| | | | | Exercised | (3,036,701 | ) | | $ | 20.53 |
| | | | | Outstanding at September 30, 2015 | 9,677,717 |
| | $ | 28.07 |
| | 5.0 | | $402 | Options exercisable at September 30, 2015 | 7,083,305 |
| | $ | 18.26 |
| | 3.7 | | $364 | Options exercisable and expected to vest at September 30, 2015(2) | 9,392,332 |
| | $ | 27.26 |
| | 4.9 | | $398 |
| | (1) | Calculated using the closing stock price on the last trading day of fiscal 2015 of $69.66, less the option exercise price, multiplied by the number of instruments. |
| | (2) | Applies a forfeiture rate to unvested options outstanding at September 30, 2015 to estimate the options expected to vest in the future. |
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| Restricted Share Activity Disclosure |
The following table summarizes the Company's RSA and RSU activity for fiscal 2015: | | | | | | | | | | | | | | | | | | | | | | | | Restricted Stock | | Weighted- Average Grant Date Fair Value | | Weighted- Average Remaining Contractual Term (in years) | | Aggregate Intrinsic Value (1) (in millions) | | Awards | | Units | | RSA | | RSU | | RSA | | RSU | | RSA | | RSU | Outstanding at October 1, 2014 | 5,234,184 |
| | 1,866,932 |
| | $ | 40.00 |
| | $ | 39.69 |
| | | | | | | | | Granted | 2,145,439 |
| | 753,733 |
| | $ | 63.71 |
| | $ | 62.88 |
| | | | | | | | | Vested | (2,702,580 | ) | | (1,005,707 | ) | | $ | 35.50 |
| | $ | 35.43 |
| | | | | | | | | Forfeited | (612,356 | ) | | (172,436 | ) | | $ | 48.32 |
| | $ | 47.86 |
| | | | | | | | | Outstanding at September 30, 2015 | 4,064,687 |
| | 1,442,522 |
| | $ | 54.09 |
| | $ | 53.80 |
| | 1.5 | | 1.4 | | $283 | | $100 |
| | (1) | Calculated by multiplying the closing stock price on the last trading day of fiscal 2015 of $69.66 by the number of instruments. |
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| Disclosure of Share-based Compensation Arrangements by Share-based Payment Award |
The following table summarizes the maximum number of performance-based shares which could be earned and related activity for fiscal 2015: | | | | | | | | | | | | | Shares | | Weighted- Average Grant Date Fair Value | | Weighted- Average Remaining Contractual Term (in years) | | Aggregate Intrinsic Value (1) (in millions) | Outstanding at October 1, 2014 | 2,075,240 |
| | $ | 44.32 |
| | | | | Granted(2) | 785,884 |
| | $ | 69.78 |
| | | | | Vested and earned | (1,221,020 | ) | | $ | 42.68 |
| | | | | Unearned | (24,924 | ) | | $ | 42.68 |
| | | | | Forfeited | (351,218 | ) | | $ | 54.25 |
| | | | | Outstanding at September 30, 2015 | 1,263,962 |
| | $ | 57.61 |
| | 0.7 | | $88 |
| | (1) | Calculated by multiplying the closing stock price on the last trading day of fiscal 2015 of $69.66 by the number of instruments. |
| | (2) | Represents the maximum number of performance-based shares which could be earned. |
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