Visa 2009 Annual Report Download - page 88

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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
is not readily determinable. Therefore, the investment is accounted for under the cost method of accounting and classified within prepaid expenses and other
current assets on the consolidated balance sheet at September 2008 and 2009. The investment is considered a Level 3 asset as the fair value is estimated by
discounting the Company's pro-rata ownership of the Fund's underlying investment holdings based upon an estimate of inherent risk. See Note 6—Prepaid
Expenses and Other Assets for additional information regarding this asset and Note 21—Legal Matters regarding legal action on this matter.
Long-lived assets such as goodwill, finite-lived intangible assets, and property, plant and equipment are considered non-financial assets, and are
measured at fair value only when impairment indicators exist. The accounting and disclosure provisions of ASC 820 as related to non-financial assets and
non-financial liabilities are effective beginning in the first quarter of fiscal 2010 and are not expected to have a significant impact on our consolidated
financial statements. See Note 1—Summary of Significant Accounting Policies.
Available-for-sale investments
Available-for-sale investment securities, which are recorded at fair value, consist of the types of securities presented below. The amortized cost,
unrealized gains and losses, and fair value of available-for-sale securities are as follows:
Available-For-Sale
(in millions)
Amortized
Cost
Gross Unrealized Fair
Value Gains Losses
September 30, 2009:
Debt securities:
U.S. government-sponsored agency debt securities $ 160 $ 9 $ — $ 169
Canadian government debt securities 7 — — 7
Corporate debt securities 10 — — 10
Mortgage backed securities 6 — — 6
Other asset backed securities 5 — — 5
Auction rate securities 13 — — 13
Equity Securities 7 7 — 14
Total $ 208 $ 16 $ — $ 224
Less: current portion of available-for-sale securities (56)
Long-term available-for-sale securities $ 168
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