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VISA INC. 8-K Report, Corporate Update (Jul 6, 2022)

Reports
Other Events
Filing Date
Filed July 6, 2022
Period End
July 6, 2022
Security
V
In the record · 2016–202610-K1010-Q338-K158

V filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 158 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jun ’16Jun ’16
  2. Leadership change8-K · Oct ’18Oct ’18
  3. Leadership change8-K · Jan ’21Jan ’21
  4. Material agreement8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed July 6, 2022. Cited figures are marked; the original filing is the authoritative source.

Visa Inc. filed an 8-K on July 6, 2022, to disclose an adjustment to the conversion rate of its Class B common stock.

This adjustment stems from a $600 milliona deposit made on June 29, 2022, into a U.S. litigation escrow account, as part of its U.S. retrospective responsibility plan. The deposit triggered a decrease in the conversion rate for Class B common stock from 1.6181 to 1.6059, effective June 29, 2022.

02—Key points

Key Highlights

  1. Visa Inc. made a $600 million deposit into a U.S. litigation escrow account on June 29, 2022.
  2. This deposit led to a revised conversion rate for Class B common stock, decreasing from 1.6181 to 1.6059.
  3. The conversion rate adjustment is effective as of June 29, 2022.
  4. The adjustment resulted in a reduction of 2,996,326 Class B common stock shares on an as-converted basis, from 397,271,122 to 394,274,796.
  5. The company states this conversion rate adjustment has the same effect on earnings per share as repurchasing Class A common stock.
  6. Calculations for the deposit and conversion rate were performed according to the company's certificate of incorporation, using the volume-weighted average price for the period of June 24, 2022, to July 5, 2022.

03—Questions

Frequently Asked Questions

  1. What is the primary reason for this 8-K filing?

    Visa Inc. filed this 8-K to announce an adjustment to the conversion rate of its Class B common stock due to a recent deposit into a U.S. litigation escrow account.

  2. How does the $600 million deposit affect the Class B common stock conversion rate?

    The $600 million deposit into the litigation escrow account triggered a decrease in the conversion rate for Class B common stock, lowering it from 1.6181 to 1.6059, effective June 29, 2022.

  3. What is the impact of this conversion rate adjustment on the number of Class B shares?

    The adjustment reduced the as-converted Class B common stock share count by 2,996,326 shares, bringing the total down from 397,271,122 to 394,274,796.

  4. How does this conversion rate adjustment affect earnings per share (EPS)?

    The company states that this conversion rate adjustment has the same effect on earnings per share as if Visa had repurchased shares of its Class A common stock.

04—Continue

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