Visa 2007 Annual Report Download - page 132

Table of Contents
VISA U.S.A. INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Plans (an amendment of FASB Statements No. 87, 88, 106 and 132(R)), which requires companies to recognize an asset or liability for the overfunded or
underfunded status of their defined benefit pension and other postretirement benefit plans on their balance sheet. Under SFAS 158, gains and losses, prior
service costs and credits and any remaining transition amounts under SFAS 87 and SFAS 106 that have not yet been recognized through net periodic benefit
cost are recognized in accumulated other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. In
addition, SFAS 158 requires that the measurement date, the date at which benefit obligations and plan assets are measured, be the company's fiscal year end.
The Company adopted the measurement date provisions of SFAS 158 at October 1, 2006, using the 15-month approach. Under this approach, Visa
U.S.A. recorded an additional 3 months of net periodic benefit cost covering the period between the previous measurement date of June 30, 2006 and
September 30, 2006. The benefit expense of $8.7 million, net of tax, was recorded as a reduction to beginning accumulated net loss at October 1, 2006. The
Company will perform another measurement at October 1, 2007 to determine the net benefit expense that will be recorded in fiscal 2008.
The effects to Visa U.S.A. of applying the recognition and measurement-date provisions of SFAS 158 on individual line items in the Company's
consolidated balance sheets at September 30, 2007 are as follows:
Prior to
application
of SFAS 158
SFAS 158
application
adjustments
After
application
of SFAS 158
(in thousands)
Current portion of deferred tax assets $ 794,925 $ 88 $ 795,013
Deferred tax assets 464,286 6,340 470,626
Total assets 4,383,689 6,428 4,390,117
Accrued compensation and benefits 240,079 4,235 244,314
Other liabilities 107,512 17,516 125,028
Total liabilities 4,831,083 21,751 4,852,834
Minority interest 42,928 (4,318) 38,610
Accumulated net loss (492,323) (8,676) (500,999)
Accumulated other comprehensive income (loss), net of tax 2,001 (2,329) (328)
Total deficit (490,322) (11,005) (501,327)
Total liabilities, minority interest, and equity $ 4,383,689 $ 6,428 $ 4,390,117
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