Visa 2009 Annual Report Download - page 112

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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
During fiscal 2008, one of the Company's directors, and the spouse of another of the Company's directors, were officers of entities that participated in
(or were affiliated with an entity that participated in) the IPO as underwriters, and one of those entities was also a customer. As underwriters, each was offered
and purchased 113 million shares of class A common stock at a price of $42.77 per share, a discount of $1.23 per share based on the IPO price of $44.00 per
share. This price per share is the same as that paid by all underwriters in the IPO. Also as underwriters, each received total underwriter fees of $139 million in
March 2008.
Investees. The Company generated total operating revenues of $56 million and $39 million, and received dividend income of $41 million and $65
million from related party investees during fiscal 2009 and 2008, respectively. The Company also received special IPO dividends from certain related party
investees which are included in the amounts discussed in Note 15—Stockholders' Equity.
Note 20—Income Taxes
The Company's income before taxes by fiscal year consisted of the following:
2009 2008 2007
(in millions)
U.S. $ 3,807 $ 1,245 $ (1,387)
Non-U.S. 193 91 —
Total income (loss) before taxes and minority interest $ 4,000 $ 1,336 $ (1,387)
Fiscal 2009 U.S. income before taxes of $3.8 billion includes $1.8 billion from non-U.S. customers.
Income tax expense by fiscal year consisted of the following:
2009 2008 2007
(in millions)
Current:
U.S. federal $ 912 $ 416 $ 520
State and local 226 82 38
Non-U.S. 208 31 —
Total current taxes 1,346 529 558
Deferred:
U.S. federal 353 189 (819)
State and local 14 (193) (55)
Non-U.S. (65) 7 —
Total deferred taxes 302 3 (874)
Total income tax (benefit) expense $ 1,648 $ 532 $ (316)
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