Visa 2011 Annual Report Download - page 102
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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2011
(in millions, except as noted)
Other long-term liabilities consisted of the following:
September 30,
2011
September 30,
2010
(in millions)
Accrued income taxes—(See Note 20—Income Taxes) $ 468 $ 423
Employee benefits 106 76
Other 93 118
Total $ 667 $ 617
(1) The put option is exercisable at any time at the sole discretion of Visa Europe with payment required 285 days thereafter. Classification in current
liabilities is not an indication of management's expectation of exercise and simply reflects the fact that the obligation resulting from the exercise of the
instrument could become payable within 12 months.
(2) The balance at September 30, 2011 includes $24 million for the fair value of the earn-out provision related to the PlaySpan acquisition. See Note 5—
Acquisitions.
Note 10—Debt
The Company prepaid all of its outstanding debt in September 2011, and had outstanding debt as follows for the periods presented:
September 30,
2011
September 30,
2010
(in millions)
5.60% Senior secured notes—Series B, principal and interest payments payable quarterly, due December 2012 $ — $ 15
8.28% Secured notes—Series B, principal and interest payments payable monthly, due September 2014 — 13
7.83% Secured notes—Series B, principal and interest payments payable monthly, due September 2015 — 17
Total principal amount of debt $ — $ 45
Unamortized discount, debt issuance costs and other costs — (1)
Total debt $ — $ 44
Less: current portion of long-term debt — (12)
Long-term debt $ — $ 32
The estimated fair value of the Company's debt at September 30, 2010 was $50 million based on credit ratings for similar notes. There was no
outstanding debt to fair value at September 30, 2011.
5.60% Senior Secured Notes-Series B. In December 2002, Visa U.S.A. issued $68 million in series B senior secured notes with a maturity date of
ten years. In September 2011, the Company paid $9 million in prepayment of the entire note. The amount includes a make-whole premium of less than $1
million, which is recorded in interest expense on the consolidated statements of operations.
8.28% Secured Notes-Series B and 7.83% Secured Notes-Series B. In September 1994 and September 1995, a real estate partnership owned jointly by
Visa U.S.A. and Visa International issued
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