Visa 2007 Annual Report Download - page 114

Table of Contents
VISA U.S.A. INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended September 30,
2007 2006 2005
(in thousands)
Operating Activities
Net (loss) income $ (1,076,095) $ 454,561 $ 360,445
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization of facilities, equipment and software 125,505 123,361 118,531
Amortization of intangibles, investments, debt issuance costs, and accretion of member deposits 11,135 16,802 16,997
Asset impairment — 13,167 1,276
Net realized gain on investment securities (3,816) (1,473) (7,732)
Gain on sale of joint venture — — (41,968)
Loss on sale of assets 2,262 3,213 —
Gain on distribution from partnership investment (435) — —
Minority interest 4,670 15,917 8,248
Amortization of volume and support incentives 489,053 580,043 572,777
Accrued litigation and accretion 2,912,790 114,468 226,222
Equity in earnings of unconsolidated affiliates (40,276) (13,355) (30,802)
Cumulative effect of accounting change – equity in earnings of Visa International — — (95,744)
Deferred income taxes (873,695) 31,630 85,186
Change in operating assets and liabilities:
Accounts receivable (28,630) (18,337) (14,285)
Settlement receivable 31,949 (6,153) (17,624)
Volume and support incentives (506,712) (405,470) (473,374)
Other assets (172,164) (62,300) (76,336)
Accounts payable (20,491) (8,500) 56,580
Settlement payable (38,885) 24,794 28,593
Accrued compensation and benefits 64,757 20,664 (11,595)
Accrued and other liabilities (2,648) 16,788 185,772
Accrued litigation (230,500) (322,685) (267,807)
Member deposits (142,627) (142,627) (142,731)
Net cash provided by operating activities 505,147 434,508 480,629
Investing Activities
Investment securities, available-for-sale:
Purchases (3,070,490) (3,783,841) (1,896,715)
Proceeds from sales and maturities 2,769,231 3,607,904 1,425,427
Proceeds from sale of interest in Inovant LLC — — 2,424
Distributions from joint venture — — 20,000
Proceeds from sale of joint venture — — 95,000
Contributions to joint venture (2,500) — —
Distributions from partnership investment 478 — —
Purchases of facilities, equipment, and software (159,960) (87,265) (119,267)
Net cash used in investing activities (463,241) (263,202) (473,131)
Financing Activities
Principal payments on debt (33,200) (33,200) (33,200)
Principal payments on capital lease obligations (3,451) (3,379) (568)
Minority interest distribution — — (12,198)
Net cash used in financing activities (36,651) (36,579) (45,966)
Increase (decrease) in cash and cash equivalents 5,255 134,727 (38,468)
Cash and cash equivalents at beginning of year 270,124 135,397 173,865
Cash and cash equivalents at end of year $ 275,379 $ 270,124 $ 135,397
Supplemental Disclosure of Cash Flow Information
Income taxes paid, net of refunds $ 413,239 $ 261,600 $ 122,529
(Decreases) increase in accounts payable and accrued and other liabilities related to purchases of facilities, equipment, and software $ (5,723) $ 9,033 $ 6,257
Interest payments on debt and capital lease $ 3,598 $ 5,772 $ 7,585
Increase in other assets related to sale of fixed assets $ 2,888 $ — $ —
See accompanying notes, which are an integral part of these consolidated financial statements.
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