Share-based Compensation (Tables)
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12 Months Ended |
Sep. 30, 2019 |
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| Share-based Payment Arrangement, Noncash Expense [Abstract] |
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| Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used |
During fiscal 2019, 2018 and 2017, 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: | | | | | | | | | | | | | | For the Years Ended September 30, | | 2019 | | 2018 | | 2017 | Expected term (in years)(1) | 3.98 |
| | 4.00 |
| | 4.23 |
| Risk-free rate of return(2) | 2.9 | % | | 2.0 | % | | 1.6 | % | Expected volatility(3) | 20.2 | % | | 18.3 | % | | 20.2 | % | Expected dividend yield(4) | 0.7 | % | | 0.7 | % | | 0.8 | % | Fair value per option granted | $ | 25.89 |
| | $ | 18.24 |
| | $ | 13.90 |
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| | (1) | Until March 2018, this assumption was based on the Company’s historical option exercises and those of a set of peer companies that management believed to be generally comparable to Visa. The Company’s data was weighted based on the number of years between the measurement date and Visa’s IPO date as a percentage of the options’ contractual term. The relative weighting placed on Visa’s data and peer data for stock options granted until March 2018 was approximately 97% and 3% in fiscal 2018, respectively, and 87% and 13% in fiscal 2017, respectively. The assumptions for stock options granted after March 2018 was based on Visa’s historical exercise experience as the passage of time since the Company’s IPO has exceeded 10 years. |
| | (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. |
| | (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 2019: | | | | | | | | | | | | | | | Options | | Weighted- Average Exercise Price Per Share | | Weighted- Average Remaining Contractual Term (in years) | | Aggregate Intrinsic Value(1) (in millions) | Outstanding at September 30, 2018 | 5,788,840 |
| | $ | 75.30 |
| | | | | Granted | 1,109,645 |
| | $ | 134.76 |
| | | | | Forfeited | (108,973 | ) | | $ | 114.04 |
| | | | | Expired | (33,574 | ) | | $ | 28.85 |
| | | | | Exercised | (1,041,280 | ) | | $ | 54.44 |
| | | | | Outstanding at September 30, 2019 | 5,714,658 |
| | $ | 90.18 |
| | 6.83 | | $ | 468 |
| Options exercisable at September 30, 2019 | 3,230,165 |
| | $ | 70.66 |
| | 5.63 | | $ | 327 |
| Options exercisable and expected to vest at September 30, 2019(2) | 5,635,182 |
| | $ | 89.69 |
| | 6.80 | | $ | 464 |
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| | (1) | Calculated using the closing stock price on the last trading day of fiscal 2019 of $172.01, less the option exercise price, multiplied by the number of instruments. |
(2) Applied a forfeiture rate to unvested options outstanding at September 30, 2019 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 RSU activity for fiscal 2019: | | | | | | | | | | | | | | | Restricted Stock Units | | Weighted- Average Grant Date Fair Value | | Weighted- Average Remaining Contractual Term (in years) | | Aggregate Intrinsic Value(1) (in millions) | Outstanding at September 30, 2018 | 5,204,454 |
| | $ | 96.50 |
| | | | | Granted | 2,785,534 |
| | $ | 137.38 |
| | | | | Vested | (2,450,257 | ) | | $ | 93.12 |
| | | | | Forfeited | (372,972 | ) | | $ | 115.15 |
| | | | | Outstanding at September 30, 2019 | 5,166,759 |
| | $ | 118.79 |
| | 0.85 | | $ | 889 |
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(1) Calculated by multiplying the closing stock price on the last trading day of fiscal 2019 of $172.01 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 2019: | | | | | | | | | | | | | | | Shares | | Weighted- Average Grant Date Fair Value | | Weighted- Average Remaining Contractual Term (in years) | | Aggregate Intrinsic Value(1) (in millions) | Outstanding at September 30, 2018 | 999,416 |
| | $ | 102.07 |
| | | | | Granted(2) | 540,538 |
| | $ | 153.42 |
| | | | | Vested and earned | (419,908 | ) | | $ | 97.71 |
| | | | | Unearned | — |
| | $ | — |
| | | | | Forfeited | (49,356 | ) | | $ | 127.66 |
| | | | | Outstanding at September 30, 2019 | 1,070,690 |
| | $ | 129.08 |
| | 0.80 | | $ | 184 |
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| | (1) | Calculated by multiplying the closing stock price on the last trading day of fiscal 2019 of $172.01 by the number of instruments. |
(2) Represents the maximum number of performance-based shares which could be earned.
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