Visa 2007 Annual Report Download - page 146
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Table of Contents
VISA U.S.A. INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 19—Commitments and Contingencies
Operating Leases
The Company leases certain premises and equipment under non-cancelable operating leases with varying expiration dates. Total rent expense,
excluding rent paid to Visa Resources, incurred by the Company was $39.2 million, $30.7 million and $32.5 million in fiscal 2007, 2006 and 2005,
respectively. See Note 8—Investments in Joint Ventures. Future minimum commitments on remaining operating leases with original terms of more than one
year are as follows:
Premises
Equipment
and License
Agreements Total
(in thousands)
For the Years Ending September 30,
2008 $ 9,219 $ 22,342 $ 31,561
2009 8,244 11,821 20,065
2010 6,460 11,550 18,010
2011 4,379 937 5,316
2012 1,310 — 1,310
Thereafter 263 — 263
Total lease commitments $ 29,875 $ 46,650 $ 76,525
In March 2003, the Company approved a data center strategy that included a plan to decommission one of its data centers by January 2007. In
September 2006, the Company executed a lease termination agreement for the data center facility. The lease termination agreement provided for an expected
lease termination date in January 2007 and revised the Company's restoration obligations under the lease. In connection with the lease termination, the
Company made a one-time lease termination payment of $5.0 million. The exit costs of $5.0 million were recorded in administrative and other in the
consolidated statements of operations in fiscal 2006.
Capital Leases
The Company entered into capital leases for certain computer equipment during 2005. The Company is financing the acquisition of the underlying
assets through the leases, and accordingly, they are recorded in the Company's assets and liabilities. Amortization charges for related assets are included in
network, EDP and communications in the consolidated statements of operations. Future minimum payments under capital leases are as follows:
For the Years Ending September 30, In Thousands
2008 $ 3,844
2009 —
2010 —
2011 —
2012 —
Thereafter —
Future minimum lease payments 3,844
Less: imputed interest 104
Present value of net minimum lease payments $ 3,740
145