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Share-based Compensation (Tables)
 12 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]  
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


(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.
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

(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.
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

(1) 
Calculated by multiplying the closing stock price on the last trading day of fiscal 2019 of $172.01 by the number of instruments.
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

(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.