Visa 2011 Annual Report Download - page 94

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2011
(in millions, except as noted)
management judgment. The Company applies fair value measurement to its strategic investments when certain events or circumstances indicate that these
investments may be impaired. The Company revalues the investments using various assumptions, including the financial metrics and ratios of comparable
public companies. There were no events or circumstances that indicated these investments have become impaired during fiscal 2011, compared with
impairment losses of $3 million and $7 million recognized during fiscal 2010 and 2009, respectively.
During fiscal 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. See Note 6—Prepaid Expenses and Other Assets.
At September 30, 2011 and 2010, non-marketable equity security investments and investments accounted for under the equity method totaled $100
million and $114 million, respectively. These assets are classified in other assets on the consolidated balance sheets. See Note 6—Prepaid Expenses and Other
Assets.
Reserve Primary Fund. The Company accounted for its investment in the Reserve Primary Fund under the cost method. After the Company determined
the investment to be other-than-temporarily impaired, the investment was classified as a Level 3 asset. During fiscal 2010 and 2009, the Company
substantially received its remaining pro-rata ownership in the Fund, resulting in the recognition of a pre-tax gain of $20 million in investment income, net
during fiscal 2010, for amounts received in excess of the carrying value.
Non-financial assets and liabilities. Long-lived assets such as goodwill, indefinite-lived intangible assets, finite-lived intangible assets, and property,
equipment and technology are considered non-financial assets. The Company does not have any significant non-financial liabilities. The Company measures
fair value of goodwill and indefinite-lived intangible assets on a non-recurring basis for purposes of initial recognition, and testing for and recording
impairment, if any. Finite-lived intangible assets primarily consist of customer relationships, reseller relationships and tradenames obtained through
acquisitions. See Note 5—Acquisitions.
The Company uses an income approach for estimating the fair values of goodwill and indefinite-lived intangible assets. As the assumptions employed
to measure these assets on a non-recurring basis are based on management's judgment using internal and external data, these fair value determinations are
classified in level 3 of the fair value hierarchy. The Company completed its annual impairment review of its indefinite-lived intangible assets and goodwill as
of February 1, 2011, and concluded there was no impairment. No recent events or changes in circumstances indicate that impairment existed at
September 30, 2011. See Note 1—Summary of Significant Accounting Policies.
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