Visa 2007 Annual Report Download - page 77

Table of Contents
Advertising, Marketing and Promotion
Advertising, marketing and promotion include expenses associated with advertising and marketing programs, sponsorships, promotions and other
related incentives to promote the Visa brand. In connection with certain sponsorship agreements, Visa U.S.A. has an obligation to spend certain minimum
amounts for advertising and marketing promotion over the terms of the agreements.
Visa International Fees
Visa U.S.A. pays fees to Visa International based on payments volumes, exclusive of PIN-based debit volume, for services primarily related to global
brand management, global product enhancements, management of global system development and interoperability, and corporate support to the entire Visa
enterprise. The fees are calculated based on Visa U.S.A.'s relative percentage of these payments volumes compared to other Visa regions.
Professional and consulting fees
Professional and consulting fees consist of fees for consulting, contractors, legal, and other professional services. Legal costs for third party services
provided in connection with ongoing legal matters are expensed as incurred. Legal costs are included in professional and consulting fees on the consolidated
statements of operations.
Administrative and Other
Administrative and other primarily consist of facilities' costs, and other corporate and overhead expenses in support of our business, such as travel
expenses.
Litigation Provision
Litigation provision is an estimate of litigation expense and is based on management's understanding of our litigation profile, the specifics of the case,
advice of counsel to the extent appropriate, and management's best estimate of incurred loss at the balance sheet dates. In accordance with SFAS No. 5,
"Accounting for Contingencies," management records a charge to income for an estimated loss if such loss is probable and reasonably estimable. Visa U.S.A.
will continue to review the litigation accrual and, if necessary, future adjustments to the accrual will be made.
Other Income (Expense)
Other income (expense) primarily consists of equity in earnings of unconsolidated affiliates, interest expense, investment income, net and other non-
operating income.
Equity in Earnings of Unconsolidated Affiliates
Equity in earnings of unconsolidated affiliates relates to investments in Visa International and joint ventures that own, lease, develop and operate all
facilities and properties used jointly by Visa U.S.A. and Visa International.
Interest Expense
Interest expense primarily includes accretion associated with litigation settlements to be paid over periods longer than one year and interest incurred on
outstanding debt.
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