Visa 2014 Annual Report Download - page 110

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2014
Indefinite-lived and finite-lived intangible assets consisted of the following:
September 30, 2014 September 30, 2013
Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
(in millions)
Finite-lived intangible assets:
Customer relationships ...... $ 339 $ (162) $ 177 $ 339 $ (125) $ 214
Tradenames ............... 192 (54) 138 192 (41) 151
Reseller relationships ........ 95 (48) 47 95 (36) 59
Other ..................... 52 (12) 40 52 (8) 44
Total finite-lived
intangible assets ............. $ 678 $ (276) $ 402 $ 678 $ (210) $ 468
Indefinite-lived
intangible assets ............. 11,009 10,883
Total intangible assets, net ..... $ 11,411 $ 11,351
Amortization expense related to finite-lived intangible assets was $66 million, $69 million and $68
million for fiscal 2014, 2013 and 2012, respectively. At September 30, 2014, estimated future
amortization expense on finite-lived intangible assets is as follows:
Fiscal 2015 2016 2017 2018
2019 and
thereafter Total
(in millions)
Estimated future amortization expense .... $ 62 $ 49 $ 47 $ 41 $ 203 $ 402
There was no impairment related to the Company’s indefinite-lived or finite-lived intangible assets
during fiscal 2014, 2013 or 2012.
In April 2014, the Company acquired a business in which it previously held a minority interest.
Total purchase consideration was approximately $170 million, paid primarily with cash on hand. Total
purchase consideration has been allocated to the tangible and identifiable intangible assets and
liabilities assumed based on their respective fair values on the acquisition date. Related indefinite-lived
intangible assets recorded totaled $126 million. Goodwill of $60 million was recorded to reflect the
excess purchase consideration over net assets assumed.
In August 2014, the Company entered into a license agreement with one of its strategic partners.
The transaction was accounted for as a business combination. Total consideration under the license
agreement was approximately $15 million, of which $12 million was recorded as goodwill.
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