Visa 2015 Annual Report Download - page 111

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
Indefinite-lived and finite-lived intangible assets consisted of the following:
September 30, 2015 September 30, 2014
Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
(in millions)
Finite-lived intangible assets:
Customer relationships .... $ 351 $ (196) $ 155 $ 339 $ (162) $ 177
Trade names ............ 192 (67) 125 192 (54) 138
Reseller relationships ..... 95 (59) 36 95 (48) 47
Other .................. 53 (17) 36 52 (12) 40
Total finite-lived intangible
assets ................... $ 691 $ (339) $ 352 $ 678 $ (276) $ 402
Indefinite-lived intangible
assets ................... 11,009 11,009
Total intangible assets, net . . $ 11,361 $ 11,411
Amortization expense related to finite-lived intangible assets was $63 million, $66 million and $69
million for fiscal 2015, 2014 and 2013, respectively. At September 30, 2015, estimated future
amortization expense on finite-lived intangible assets is as follows:
Fiscal: 2016 2017 2018 2019
2020 and
thereafter Total
(in millions)
Estimated future amortization expense .... $ 51 $ 49 $ 43 $ 43 $ 166 $ 352
There was no impairment related to the Company’s indefinite-lived or finite-lived intangible assets
during fiscal 2015, 2014 or 2013.
In August 2014, the Company entered into a license agreement with one of its strategic partners,
in which it previously held a minority interest. 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. Subsequently, in April 2015, the Company acquired 100% of the
outstanding shares of the strategic partner. The total purchase consideration was approximately $116
million, excluding the Company’s previously held minority interest, paid primarily with cash on hand.
Total purchase consideration was allocated to the tangible and identifiable intangible assets acquired,
and to liabilities assumed based on their respective fair value on the acquisition date. Related finite-
lived intangible assets recorded, comprised primarily of customer relationships, totaled $13 million with
a weighted-average useful life of 6.7 years. Goodwill of $72 million was recorded to reflect the excess
purchase consideration over net assets acquired.
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 was 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.
98