Visa 2008 Annual Report Download - page 174

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
The tax effect of temporary differences that give rise to significant portions of deferred tax assets and liabilities at September 30, 2008 and 2007 are
presented below:
2008 2007
(in millions)
Deferred Tax Assets
Accrued compensation and benefits $ 88 $ 31
SFAS 158 adjustment 41 1
Investments in joint ventures — 37
Accrued litigation obligation 1,182 1,311
Volume and support incentives 37 12
Research and development credits 19 —
Federal benefit of state taxes 211 —
Federal benefit of foreign taxes 32 —
Other 28 11
Deferred tax assets 1,638 1,403
Deferred Tax Liabilities
Property, equipment and technology, net (82) (9)
Investment in Visa International — (100)
Investment in joint ventures (212) —
Intangible assets (4,199) —
Foreign taxes (4) —
Federal benefit of state taxes — (27)
Other (8) (1)
Deferred tax liabilities (4,505) (137)
Net deferred tax (liabilities) assets $ (2,867) $ 1,266
Total net deferred tax assets and liabilities are included in the Company's consolidated balance sheets as follows:
September 30,
2008
September 30,
2007
(in millions)
Current deferred tax assets $ 944 $ 795
Non current deferred tax (liabilities) assets, net (3,811) 471
Net deferred tax (liabilities) assets $ (2,867) $ 1,266
The increase in the Company's deferred tax liabilities during fiscal 2008 is primarily attributable to recording, as part of the reorganization, the fair
value of acquired assets and assumed liabilities of Visa International, Visa Canada and Inovant other than goodwill in excess of their historical book basis in
accordance with SFAS No. 141.
Included in accrued litigation on the Company's consolidated balance sheet at September 30, 2008 is approximately $3 billion associated with the
American Express settlement, the Discover litigation and other matters. For tax purposes, the deduction related to these matters is deferred until
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