Visa 2007 Annual Report Download - page 93

Table of Contents
See Note 14—Debt, Note 19—Commitments and Contingencies and Note 20—Legal Matters to the Visa U.S.A. fiscal 2007 consolidated financial
statements.
Visa U.S.A. also has obligations with respect to its pension and postretirement benefit plans, and other incentive plans. See Note 12—Pension,
Postretirement and Other Benefits to the Visa U.S.A. fiscal 2007 consolidated financial statements.
Related Parties
Prior to the closing of the reorganization during October 2007, Visa U.S.A. conducted business as a non-stock, non-assessable membership corporation.
The principal members of Visa U.S.A. were approximately 1,600 financial institutions that participated directly in Visa U.S.A.'s payment programs. In
addition, there were approximately 11,700 associate and participant members that participated in Visa U.S.A.'s payment programs through one or more
principal members.
At September 30, 2007, Visa U.S.A.'s board of directors was comprised of ex-officio directors, individuals who were also officers of various member
financial institutions that are also Visa U.S.A.'s customers and independent directors. Visa U.S.A. generated total operating revenues of approximately $903
million, $808 million and $884 million from financial institutions with officers that also served on its board of directors in fiscal 2007, 2006 and 2005,
respectively. During fiscal 2007, 2006 and 2005, a significant portion of Visa U.S.A.'s operating revenues were generated from one customer with an officer
that also served on the board of directors. Operating revenues from this customer were $454 million or 13%, $408 million or 14%, and $345 million or 13%
of Visa U.S.A.'s total operating revenues in fiscal 2007, 2006 and 2005, respectively. Additionally, operating revenues generated from a customer which did
not have an officer on the board were $384 million, or 11% in fiscal 2007. No other customer accounted for 10% or more of Visa U.S.A.'s total operating
revenues in fiscal 2007, 2006 and 2005. See Note 18—Related Parties to the Visa U.S.A. fiscal 2007 consolidated financial statements. The loss of these
customers could adversely impact Visa U.S.A.'s operating revenues and operating income.
Critical Accounting Estimates
Visa U.S.A.'s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of
America. The preparation of these consolidated financial statements requires management to make judgments, assumptions and estimates that affect the
amounts reported. Note 2—Significant Accounting Policies to the Visa U.S.A. fiscal 2007 consolidated financial statements describes the significant
accounting policies and methods used in the preparation of Visa U.S.A.'s consolidated financial statements. Visa U.S.A. has established policies and control
procedures to seek to ensure that estimates and assumptions are appropriately governed and applied consistently from period to period. The following is a
brief description of Visa U.S.A.'s current accounting policies involving significant management judgment.
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