Visa 2008 Annual Report Download - page 136

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
accounted for under the cost method of accounting and classified as an other current asset on the Company's consolidated balance sheet. Upon reclassification
to other current assets, the Company recorded the investment at fair value with the resulting loss recorded as investment income, net. The Company estimated
fair value by discounting the fund's underlying holdings of securities based upon an estimate of risk inherent in those underlying investments. Using this
method the Company recorded a write-down of approximately $30 million in its fourth fiscal quarter which was recorded in investment income, net on the
consolidated statements of operations. This write-down reflects a per share price of $0.97 at September 30, 2008. On October 31, 2008, the Company received
an initial distribution of $499 million or, 52%, of the fair value of the investment at September 30, 2008. Based upon the fund's underlying holdings of
securities, it is expected that the Company will receive remaining liquidation proceeds over the next twelve months. However, it is not possible to predict the
amount or timing of these distributions with certainty.
The non-trade receivable balance at September 30, 2007, includes the $185 million receivable from the five co-defendant banks as part of the American
Express settlement agreement (see Note 23—Legal Matters). The balance was received from the co-defendant banks, and paid to American Express in March
of 2008.
The Company acquired a significant portion of its other investments portfolio from Visa International during the reorganization on October 1, 2007 (see
Note 3—The Reorganization and Note 6—Investments). These investments include equity interests in privately-held companies for which the fair value is not
readily determinable. Given the absence of observable indicators of fair value, the Company has determined that the fair value of these investments recorded
on the reorganization date remains the best estimate of fair value at September 30, 2008.
Note 8—Property, Equipment and Technology
Property, equipment and technology, net consisted of the following:
September 30,
2008
September 30,
2007
(in millions)
Land $ 71 $ 30
Buildings and building improvements 369 89
Furniture, equipment and leasehold improvements 519 370
Construction-in-progress 266 45
Technology 531 249
Total property, equipment and technology 1,756 783
Accumulated depreciation and amortization (676) (470)
Property, equipment and technology, net $ 1,080 $ 313
Furniture, equipment and leasehold improvements include certain transportation assets acquired during the 12 months ended September 30, 2008, with
an original cost of $56 million.
Construction-in-progress primarily reflects costs related to the ongoing construction of the Company's east coast data center, which is expected to
commence operations in fiscal 2009.
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