Visa 2008 Annual Report Download - page 152

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
Note 15—Enterprise-wide Disclosures and Concentrations of Credit Risk
Revenue by geographic market is primarily based on the location of the issuing bank. Certain revenues, primarily international service fees, are shared
by geographic locations based upon the location of the merchant involved in the transaction. Visa does not maintain or measure revenues by individual
country, other than the U.S. Revenue generated in the U.S. which was approximately 59%, 92% and 90% of total operating revenues in fiscal 2008, 2007, and
2006, respectively.
A significant portion of the Company's operating revenues are concentrated among its largest customers. The Company's five largest customers
represented approximately $1.6 billion, or 26%, of its operating revenues during fiscal 2008. The Company's customers can reassess their commitments to it
at any time in the future and/or develop their own competitive services. Loss of business from any of the Company's largest customers could have a material
adverse effect on its business. Revenues from the Company's top five customers were approximately 26%, 33% and 32% of total operating revenues in fiscal
2008, 2007 and 2006, respectively.
The Company's long-lived assets excluding investments, volume and support incentives, restricted cash, deferred tax assets, other assets, intangibles
and goodwill are classified by major geographic area as follows at September 30, 2008 and September 30, 2007:
September 30,
2008
September 30,
2007
(in millions)
U.S. $ 1,014 $ 313
Non-U.S. 66 —
Total $ 1,080 $ 313
The Company extends credit to its affiliated and non-affiliated customers as part of its normal settlement activities. Collection of trade receivables may
be affected by changes in economic or other industry conditions and may, accordingly, impact the Company's overall credit risk. The Company performs
ongoing credit evaluations of its customers and has not historically had any collectability issues regarding trade receivables.
The Company also has significant concentration risk related to its guarantees on potential uncollateralized customer settlement losses. See Note 13—
Settlement Guarantee Management for additional discussion.
Cash and cash equivalents and available-for-sale investments include short-term investments in debt and equity securities. The Company has policies
and procedures that limit the amount of credit exposure to any one financial institution or type of investment instrument.
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