Visa 2008 Annual Report Download - page 196

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
On October 27, 2008, Visa, MasterCard and Discover resolved pending litigation by executing a final settlement agreement that became effective upon
approval by Visa's Class B shareholders. Visa's net share of the settlement totals $1.8 billion. See Note 23—Legal Matters.
Under the Company's Retrospective Responsibility Plan, its class B shareholders will bear the cost of funding the escrow account via a further dilutive
adjustment in the conversion ratio of their class B shares to shares of class A common stock, reducing the total number of diluted class A shares outstanding
for purposes of calculating EPS. See Note 5—Retrospective Responsibility Plan. On November 14, 2008 the Company filed a definitive proxy with the
Securities and Exchange Commission seeking to amend its charter to permit the deposit of operating cash directly into the escrow account with a
corresponding reduction in the conversion ratio applicable to class B common shares. Funding the escrow account in this manner would also effectively act as
a share repurchase program.
Selected Quarterly Financial Data (Unaudited)
(in millions, except per share data)
The following tables show selected quarterly operating results for each quarter and full year of fiscal 2008 for Visa Inc. and of fiscal 2007 for Visa
U.S.A. Inc.:
Quarter Ended (unaudited) Fiscal Year
Visa Inc.
Dec. 31,
2007
Mar. 31,
2008
June 30,
2008
Sept. 30,
2008 2008 Total
Operating revenues $ 1,488 $ 1,453 $ 1,613 $ 1,709 $ 6,263
Operating income (loss) 678 349 648 (443) 1,232
Net income (loss) 424 314 422 (356) 804
Basic and diluted net income per sharei 0.55 N/A N/A N/A N/A
Basic net income (loss) per shareii
Class A common stock N/A $ 0.39 $ 0.51 $ (0.45) $ 0.96
Class B common stock N/A $ 0.37 $ 0.36 $ (0.32) $ 0.85
Class C (series I) common stock N/A $ 0.39 $ 0.51 $ (0.45) $ 0.96
Class C (series II) common stock N/A $ 0.30 $ 0.12 $ 0.12 $ 0.79
Class C (series III and IV) common stock N/A $ 0.39 $ 0.51 $ (0.45) $ 0.96
Diluted net income (loss) per share
Class A common stock N/A $ 0.39 $ 0.51 $ (0.45) $ 0.96
Class B common stock N/A $ 0.37 $ 0.36 $ (0.32) $ 0.85
Class C (series I) common stock N/A $ 0.39 $ 0.51 $ (0.45) $ 0.96
Class C (series II) common stock N/A $ 0.30 $ 0.12 $ 0.12 $ 0.79
Class C (series III and IV) common stock N/A $ 0.39 $ 0.51 $ (0.45) $ 0.96
Quarter Ended (unaudited) Fiscal Year
Visa U.S.A. Inc.iii
Dec.31,
2006
Mar. 31,
2007
June 30,
2007
Sept. 30,
2007 2007 Total
Operating revenues $ 845 $ 813 $ 940 $ 992 $ 3,590
Operating income (loss) 309 271 333 (2,362) (1,449)
Net income (loss) 205 180 223 (1,684) (1,076)
iFor the three months ended December 31, 2007, the Company did not have any dilutive potential common shares. The stockholders of each regional
class and series of common stock are legally
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