Visa 2008 Annual Report Download - page 124

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
The following table summarizes the allocation of total purchase consideration to tangible and intangible assets acquired, liabilities assumed and
goodwill at October 1, 2007:
in millions
Tangible assets and liabilities
Current assets $ 1,733
Non-current assets 610
Property, equipment and technology, net 512
Current liabilities (1,194)
Non-current liabilities (4,351)
Pension and post-retirement benefits (45)
Long-term debt (30)
Intangible assets
Tradename 2,564
Customer relationships 6,799
Visa Europe franchise right 1,520
Goodwill 9,145
Net assets acquired $ 17,263
The following table reflects activity related to goodwill from September 30, 2007 to September 30, 2008:
in millions
Balance at September 30, 2007 $ —
Goodwill acquired at the reorganization date 9,145
Additional consideration paid by Visa U.S.A. in connection with the true-up of ownership among the participating regions 1,150
Deferred tax adjustments (84)
Other 2
Balance at September 30, 2008 $ 10,213
As discussed above under "True-Up of Purchase Consideration," under the guidelines of SFAS 141, the ownership interest of the Visa U.S.A. member
group in the Company was reduced as a result of the true-up, with a corresponding increase in the collective ownership interest of the other stockholders,
resulting in additional purchase consideration. The additional purchase consideration of $1.2 billion was recorded as an increase in additional paid-in capital
and goodwill.
Deferred tax adjustments impacting goodwill were primarily related to the release of the deferred tax liability for Visa U.S.A.'s historical equity
ownership in Visa International, and adjustments in deferred taxes associated with the EU framework agreement and fair value of certain assets acquired in
the reorganization.
The purchased intangibles and goodwill are not deductible for tax purposes. Substantially all of the identifiable intangible assets have an indefinite life
and accordingly are not subject to amortization. The Company has determined that all goodwill is attributable to its single reportable segment.
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