Visa 2007 Annual Report Download - page 138

Table of Contents
VISA U.S.A. INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Information about the expected cash flows for the pension and postretirement benefit plans follows:
Visa
U.S.A.'s
Portion
Visa
U.S.A.'s
Portion
Pension
Benefits
Postretirement
Benefits
(in thousands)
Expected employer contributions
2008 $ 62,400 $ 48,400 $ 4,600 $ 3,300
Expected benefit payments
2008 $ 71,200 $ 54,200 $ 4,600 $ 3,300
2009 77,200 61,700 5,500 4,100
2010 82,700 66,700 6,300 4,800
2011 86,800 68,500 7,100 5,600
2012 83,600 66,600 7,800 6,200
2013-2017 364,300 288,200 46,100 37,400
Other Benefits
The Company participates in a defined contribution plan, which covers substantially all of its employees and Visa International employees residing in
the United States. Personnel costs included $25.8 million, $24.1 million and $22.9 million in fiscal 2007, 2006 and 2005, respectively, for expenses
attributable to the Company's employees under the plan. The Company's contributions to this plan are funded on a current basis and the related expenses are
recognized in the period that the payroll expenses are incurred.
The Company has employee incentive plans under which cash awards may be made annually based on performance results. Personnel costs included
$146.4 million, $106.1 million and $93.5 million in fiscal 2007, 2006 and 2005, respectively, for expenses attributable to the incentive plans. The fiscal 2007
amount includes an employee incentive of $26 million, representing the first installment of a special bonus plan of $51 million associated with Visa Inc.
activities. The total incentive of $51 million vested 50% during fiscal 2007. The other 50% is payable in stock one year after the completion of an IPO of Visa
Inc., if certain vesting requirements are met.
Note 13—Restricted Assets and Liabilities
Member Collateral
Under the corporate bylaws, the Company indemnifies issuing and acquiring member financial institutions for settlement losses suffered by reason of
the failure of any other member to honor drafts processed in accordance with the Operating Regulations. To reduce this risk, the Company obtains collateral
from member financial institutions, which would be used in the event of a member's non-performance of its settlement obligations. This collateral is generally
in the form of cash equivalents, securities and letters of credit. The Company held collateral as follows:
At September 30
2007 2006
(in thousands)
Cash equivalents $ 67,885 $ 51,042
Pledged securities at market 101,148 118,020
Letters of credit 92 92
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