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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
Note 1—Summary of Significant Accounting Policies
Organization. In a series of transactions from October 1 to October 3, 2007, Visa Inc. (“Visa” or
the “Company”) undertook a reorganization in which Visa U.S.A. Inc. (“Visa U.S.A.”), Visa International
Service Association (“Visa International”), Visa Canada Corporation (“Visa Canada”) and Inovant LLC
(“Inovant”) became direct or indirect subsidiaries of Visa and established the retrospective
responsibility plan (the “October 2007 reorganization” or “reorganization”). See Note 3—Retrospective
Responsibility Plan. The reorganization was reflected as a single transaction on October 1, 2007 using
the purchase method of accounting with Visa U.S.A. as the accounting acquirer. Visa Europe Limited
(“Visa Europe”) did not become a subsidiary of Visa Inc., but rather remained owned and governed by
its European member financial institutions. See Note 2—Visa Europe.
Visa is a global payments technology company that connects consumers, businesses, financial
institutions and governments in more than 200 countries and territories to fast, secure and reliable
electronic payments. Visa and its wholly-owned consolidated subsidiaries, including Visa U.S.A., Visa
International, Visa Worldwide Pte. Limited (“VWPL”), Visa Canada, Inovant and CyberSource
Corporation (“CyberSource”), operate one of the world’s most advanced processing networks —
VisaNet — which facilitates authorization, clearing and settlement of payment transactions worldwide.
VisaNet also offers fraud protection for account holders and assured payment for merchants. Visa is
not a bank and does not issue cards, extend credit or set rates and fees for account holders on Visa-
branded cards and payment products. In most cases, account holder and merchant relationships
belong to, and are managed by, Visa’s financial institution clients. Visa provides a wide variety of
payment solutions that support payment products that issuers can offer to their account holders: pay
now with debit, pay ahead with prepaid or pay later with credit products. These services facilitate
transactions on Visa’s network among account holders, merchants, financial institutions and
governments in mature and emerging markets globally.
Consolidation and basis of presentation. The consolidated financial statements include the
accounts of Visa and its consolidated entities and are presented in accordance with accounting
principles generally accepted in the United States of America (“U.S. GAAP”). The Company
consolidates its majority-owned and controlled entities, including variable interest entities (“VIEs”) for
which the Company is the primary beneficiary. The Company’s investments in VIEs have not been
material to its consolidated financial statements as of and for the periods presented. All significant
intercompany accounts and transactions are eliminated in consolidation.
Beginning in fiscal 2013, current income tax receivable is presented separately on the
consolidated balance sheets. Previously, it had been included in the prepaid expenses and other
current assets line. The Company also combined the interest income (expense), investment income
and other lines on the consolidated statements of operations into one line entitled, “Non-operating
income.” All prior period information has been reclassified to conform to current period presentation.
The Company’s activities are interrelated, and each activity is dependent upon and supportive of
the other. All significant operating decisions are based on analysis of Visa as a single global business.
Accordingly, the Company has one reportable segment, Payment Services.
Use of estimates. The preparation of consolidated financial statements in conformity with U.S.
GAAP requires management to make estimates and assumptions about future events. These
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