Visa 2014 Annual Report Download - page 109

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2014
Note 6—Property, Equipment and Technology, Net
Property, equipment and technology, net, consisted of the following:
September 30,
2014
September 30,
2013
(in millions)
Land ................................................... $71$71
Buildings and building improvements ......................... 787 766
Furniture, equipment and leasehold improvements .............. 1,197 983
Construction-in-progress ................................... 76 74
Technology .............................................. 1,784 1,545
Total property, equipment and technology ..................... 3,915 3,439
Accumulated depreciation and amortization ................ (2,023) (1,707)
Property, equipment and technology, net ...................... $ 1,892 $ 1,732
Technology consists of both purchased and internally developed software. Internally developed
software primarily represents software utilized by the VisaNet electronic payments network and
CyberSource platform. At September 30, 2014 and 2013, accumulated amortization for technology was
$1,129 million and $959 million, respectively.
At September 30, 2014, estimated future amortization expense on technology was as follows:
Fiscal 2015 2016 2017 2018
2019 and
thereafter Total
(in millions)
Estimated future amortization expense . . . $ 199 $ 183 $ 138 $ 80 $ 55 $ 655
Depreciation and amortization expense related to property, equipment and technology was $369
million, $328 million and $265 million for fiscal 2014, 2013 and 2012, respectively. Included in those
amounts was amortization expense on technology of $198 million, $173 million and $132 million for
fiscal 2014, 2013 and 2012, respectively.
Note 7—Intangible Assets and Goodwill
At September 30, 2014 and 2013, 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 United States,
excluding the European Union. Tradenames represent the value of the Visa brand outside of the
United States, 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.
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