Visa 2007 Annual Report Download - page 141

Table of Contents
VISA U.S.A. INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 15—Investment Income, Net
Investment income, net, is comprised of the following:
For the Years Ended September 30,
2007 2006 2005
(in thousands)
Interest and dividend income on investment securities $ 98,208 $ 66,857 $ 31,309
Gross realized gains on investment securities 4,346 1,521 7,882
Gross realized losses on investment securities (530) (48) (150)
Gain on distribution from partnership investment 435 — —
Gain on sale of joint venture (Note 8) — — 41,968
Investment income, net $ 102,459 $ 68,330 $ 81,009
Note 16—Workforce Reduction
In November 2006, Visa U.S.A. announced plans to outsource certain data processing and development support functions over the course of fiscal
2007. This action was intended to help Visa U.S.A. better align personnel and contract staffing levels with fluctuating project demand. As a result of this
strategy, Visa U.S.A. reduced the total number of employees of Visa U.S.A. by approximately 5% of Visa U.S.A.'s total workforce at December 31, 2006. In
accordance with SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities," the Company incurred charges of $13.2 million during
fiscal 2007. Most terminations were completed by the fourth fiscal quarter of 2007 while retention bonuses will continue to be paid through the third fiscal
quarter of 2008 for certain employees who have been requested to render services until that time. Approximately $1 million in additional charges are expected
in fiscal 2008, based upon current assumptions for the timing of employee terminations.
These costs are estimated based on the Company's workforce reduction plan at the balance sheet date and are subject to adjustment. The Company
regularly evaluates the adequacy of the remaining liabilities under its workforce reduction plan. Although the Company believes that these estimates
accurately reflect the costs of its plan, actual results may differ, thereby requiring the Company to record additional provisions or reverse a portion of such
provisions.
Activity related to the workforce reduction is included in personnel expense on the Company's consolidated statements of operations and in accrued
compensation and benefits on the Company's consolidated balance sheets as follows:
(in thousands)
Beginning balance, October 1, 2006 $ —
Workforce reduction charges 13,241
Cash payments (10,788)
Ending balance, September 30, 2007 $ 2,453
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