Visa 2007 Annual Report Download - page 164

Table of Contents
VISA U.S.A. INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Under the settlement agreement, American Express will receive maximum payments of $2.25 billion including $2.07 billion from Visa Inc. and $185
million from the five co-defendant banks. An initial payment of $1.13 billion will be made on or before March 31, 2008, including $945 million from Visa
Inc. and $185 million from the five co-defendant banks. Beginning March 31, 2008, Visa will pay American Express an additional amount of up to $70
million a quarter for 16 quarters, for a maximum total of $1.12 billion.
Visa Inc.'s future minimum payments under the settlement agreement are as follows:
For the years ending September 30, In Millions
2008 $ 1,155
2009 280
2010 280
2011 280
2012 70
Total Future Commitments $ 2,065
Future payments discounted at 4.72% over the payment term of $1.9 billion are reflected in the litigation provision on Visa U.S.A.'s consolidated
statements of operations for the fiscal year ended September 30, 2007 and in current and long term accrued litigation on the consolidated balance sheets at
September 30, 2007. The settlement will be funded by the members of Visa U.S.A. through Visa Inc.'s retrospective responsibility plan, a series of agreements
with U.S. financial institutions to fund the financial obligations of certain litigation, including the American Express litigation covered by this settlement
agreement. See Note 20—Legal Matters.
Selected Quarterly Financial Data (Unaudited)
A summary of Visa U.S.A.'s unaudited quarterly financial data for fiscal 2007 and 2006 is as follows:
In Thousands
Quarter
Ended
Dec. 31, 2006
Quarter
Ended
Mar. 31, 2007
Quarter
Ended
June 30, 2007
Quarter
Ended
Sept. 30, 2007
Year
Ended
Sept. 30, 2007
Operating revenues $ 845,411 $ 812,763 $ 940,577 $ 991,045 $ 3,589,796
Operating income (loss) 309,304 270,896 333,765 (2,363,460) (1,449,495)
Net income (loss) 204,892 180,239 223,349 (1,684,575) (1,076,095)
In Thousands
Quarter
Ended
Dec. 31, 2005
Quarter
Ended
Mar. 31, 2006
Quarter
Ended
June 30, 2006
Quarter
Ended
Sept. 30, 2006
Year
Ended
Sept. 30, 2006
Operating revenues $ 719,812 $ 747,617 $ 735,990 $ 744,707 $ 2,948,126
Operating income 183,293 165,464 203,326 177,587 729,670
Net income 112,879 99,939 127,344 114,399 454,561
Certain reclassifications, not affecting income, have been made to prior period quarterly information in order to conform to the current year presentation
format.
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