Visa 2015 Annual Report Download - page 110

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
Note 6—Property, Equipment and Technology, Net
Property, equipment and technology, net, consisted of the following:
September 30,
2015
September 30,
2014
(in millions)
Land ................................................ $71$71
Buildings and building improvements ...................... 803 787
Furniture, equipment and leasehold improvements .......... 1,267 1,197
Construction-in-progress ................................ 120 76
Technology ........................................... 2,022 1,784
Total property, equipment and technology ................. 4,283 3,915
Accumulated depreciation and amortization ............ (2,395) (2,023)
Property, equipment and technology, net .................. $ 1,888 $ 1,892
Technology consists of both purchased and internally developed software. Internally developed
software primarily represents software utilized by the VisaNet electronic payments network. At
September 30, 2015 and 2014, accumulated amortization for technology was $1.4 billion and $1.1
billion, respectively.
At September 30, 2015, estimated future amortization expense on technology was as follows:
Fiscal: 2016 2017 2018 2019
2020 and
thereafter Total
(in millions)
Estimated future amortization expense ..... $ 216 $ 169 $ 110 $ 76 $ 76 $ 647
Depreciation and amortization expense related to property, equipment and technology was $431
million, $369 million and $328 million for fiscal 2015, 2014 and 2013, respectively. Included in those
amounts was amortization expense on technology of $251 million, $198 million and $173 million for
fiscal 2015, 2014 and 2013, respectively.
Note 7—Intangible Assets and Goodwill
At September 30, 2015 and 2014, the Company’s indefinite-lived intangible assets consisted of
customer relationships of $6.8 billion, Visa trade name 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. Trade names 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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