Visa 2007 Annual Report Download - page 126

Table of Contents
VISA U.S.A. INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The contractual maturity of available-for-sale debt securities regardless of their balance sheet classification is as follows:
Amortized Cost Fair Value
(in thousands)
September 30, 2007:
Due within one year $ 697,070 $ 697,786
Due between thirteen months and four years 736,858 737,498
Total $ 1,433,928 $ 1,435,284
Investments with a fair market value less than cost at September 30, 2007 are as follows:
12 Months or Less
Greater Than 12
Months Total
Description of Securities
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
(in thousands)
Government-sponsored entities $ — $ — $ 69,417 $ 83 $ 69,417 $ 83
Tax-exempt municipal bonds — — 7,761 67 7,761 67
Equity securities 1,724 22 944 424 2,668 446
Total $ 1,724 $ 22 $ 78,122 $ 574 $ 79,846 $ 596
The unrealized losses on investments in government-sponsored entities and tax-exempt municipal bonds are caused by interest rate increases. The
contractual terms of those investments do not permit the issuer to settle the securities at a price less than the par value of the initial issuance of the securities.
At September 30, 2007, a total of 10 investments in government-sponsored entities and tax-exempt municipal bonds are in an unrealized loss position.
Because management has the ability and intent to hold these investments until a recovery of fair value, which may be to maturity, the Company does not
consider these investments to be other-than-temporarily impaired at September 30, 2007.
Equity securities primarily consist of mutual fund investments related to various employee compensation plans. For these plans, employees bear the risk
of market fluctuations. Losses experienced on these equity investments are offset by reductions in personnel expense. Unrealized losses on equity securities
were caused by changes in market conditions. At September 30, 2007, a total of 11 fund investments are in an unrealized loss position. The Company has not
identified any events or changes in circumstances that may have had a significant adverse effect on the fair value of investments in equity securities. Based on
an evaluation of the near-term prospects of these investments and management's ability and intent to hold these investments for a reasonable period of time
sufficient for a forecasted recovery of fair value, the Company does not consider these investments to be other-than-temporarily impaired at September 30,
2007.
Note 8—Investments in Joint Ventures
Real Estate Joint Ventures
The Company and Visa International invest in joint ventures that own, lease, develop and operate all facilities and properties used jointly by Visa
U.S.A. and Visa International.
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