Visa 2012 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2012 Visa annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

Table of Contents VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2012
Note 8—Intangible Assets, Net
At September 30, 2012 and 2011 , 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 of $1.5 billion , all of which were acquired as part of
the Company’s October 2007 reorganization. Customer relationships represent the value of relationships with clients outside of the
U.S., excluding the European Union. Tradename represents the value of the Visa brand outside of the U.S., excluding the
European Union. Visa Europe’s franchise right represents the value of the right to franchise the use of the Visa brand, use of Visa
technology and access to the overall Visa network in the European Union.
The Company acquired finite-lived intangible assets primarily related to the CyberSource, PlaySpan and Fundamo
acquisitions during fiscal 2011 and 2010. See Note 5—Acquisitions .
Indefinite-lived and finite-lived intangible assets consisted of the following:
Amortization expense related to finite-lived intangible assets was $68 million , $63 million and $10 million for fiscal 2012 ,
2011 and 2010 , respectively. At September 30, 2012 , estimated future amortization expense on finite-lived intangible assets is as
follows:
There was no impairment related to the Company’s indefinite-lived or finite-lived intangible assets during fiscal 2012 , 2011 or
2010 .
Note 9—Accrued and Other Liabilities
Accrued liabilities consisted of the following:
83
September 30, 2012
September 30, 2011
Gross
Accumulated
Amortization
Net
Gross
Accumulated
Amortization
Net
(in millions)
Finite-lived intangible assets
Customer relationships
$
339
$
(84
)
$
255
$
337
$
(44
)
$
293
Tradenames
192
(28
)
164
192
(15
)
177
Reseller relationships
95
(25
)
70
95
(13
)
82
Other
52
(4
)
48
2
(1
)
1
Total finite-lived intangible assets
$
678
$
(141
)
$
537
$
626
$
(73
)
$
553
Indefinite-lived intangible assets
$
10,883
$
10,883
Total intangible assets, net
$
11,420
$
11,436
Fiscal (in millions) 2013
2014
2015
2016
2017 and
thereafter
Total
Estimated future amortization expense
$
69
$
66
$
62
$
49
$
291
$
537
September 30,
2012
September 30,
2011
(in millions)
Accrued operating expenses
$
194
$
175
Visa Europe put option—(See Note 2—Visa Europe )
(1)
145
145
Deferred revenue
59
63
Accrued marketing and product expenses
22
36
Accrued income taxes—(See Note 20—Income taxes )
58
63
Other
106
80
Total
$
584
$
562