Visa 2011 Annual Report Download - page 100

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2011
(in millions, except as noted)
The other investments balance represents equity investments in privately-held companies. On January 24, 2011, the Company's wholly-owned
subsidiary, Visa International, sold its 10 percent investment in Visa Vale issuer Companhia Brasileira de Soluções e Serviços, or CBSS, to Banco do Brasil
and Bradesco. The Company received gross proceeds of $103 million. Prior to the sale, the Company accounted for the investment under the cost method with
a book value of $17 million. The sale was subject to regulatory approval by Brazil's Conselho Administrativo de Defesa Econômica. The approval was
received in the third quarter of fiscal 2011. Upon the approval, the Company recognized a pre-tax gain, net of transaction costs, of $85 million in the
investment income, net line of the consolidated statements of operations. The amount of the gain net of tax was $44 million.
Note 7—Property, Equipment and Technology, Net
Property, equipment and technology, net consisted of the following:
September 30,
2011
September 30,
2010
(in millions)
Land $ 71 $ 71
Buildings and building improvements 719 648
Furniture, equipment and leasehold improvements 755 687
Construction-in-progress 89 75
Technology 1,115 908
Total property, equipment and technology 2,749 2,389
Accumulated depreciation and amortization (1,208) (1,032)
Property, equipment and technology, net $ 1,541 $ 1,357
At September 30, 2011, property, equipment and technology, net included $73 million in net assets acquired as part of the Fundamo and PlaySpan
acquisitions made in fiscal 2011, which are primarily comprised of technology assets. See Note 5—Acquisitions. Technology consists of both purchased and
internally developed software. Internally developed software primarily represents software utilized by the VisaNet electronic payment network. At
September 30, 2011 and 2010, accumulated amortization for technology was $677 million and $577 million, respectively.
At September 30, 2011, estimated future amortization expense on technology placed in service was as follows:
Fiscal (in millions) 2012 2013 2014 2015
2016 and
thereafter Total
Estimated future amortization expense $ 109 $ 103 $ 87 $ 74 $ 65 $ 438
Depreciation and amortization expense related to property, equipment and technology was $225 million, $265 million and $226 million for fiscal 2011,
2010 and 2009, respectively. Included in those amounts was amortization expense on technology of $102 million, $137 million and $128 million for fiscal
2011, 2010 and 2009, respectively.
Note 8—Intangible Assets, Net
At September 30, 2011 and 2010, the Company's indefinite-lived intangible assets consisted of customer relationships of $6.8 billion, Visa tradename
of $2.6 billion and a Visa Europe franchise right
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