Visa 2008 Annual Report Download - page 59

Table of Contents
support incentives and estimates of performance. Estimated costs associated with these contracts are adjusted as appropriate to reflect payments volume
performance and projections that are higher or lower than management's original expectation or to reflect contract amendments.
Operating Expenses
Our operating expenses consist of: personnel; network, electronic data processing (EDP) and communications; advertising, marketing and promotion;
professional and consulting fees; depreciation and amortization; administrative and other; and litigation provision.
Personnel
Personnel expense consists of salaries, stock-based compensation, incentives and various fringe benefits.
Network, EDP and communications
Network, EDP and communications represent expenses for the operation of our electronic payments network, including maintenance, equipment rental
and fees for other data processing services.
Advertising, marketing and promotion
Advertising, marketing and promotion include expenses associated with advertising and marketing programs, sponsorships, promotions and other
related incentives to promote the Visa brand. In connection with certain sponsorship agreements, we have an obligation to spend certain minimum amounts
for advertising and marketing promotion over the terms of the agreements.
Visa International Fees
Prior to the reorganization, Visa U.S.A. paid fees to Visa International based on payments volumes, exclusive of PIN-based debit volume, for services
primarily related to global brand management, global product enhancements, management of global system development and interoperability, and corporate
support to the entire Visa enterprise. These fees ceased as a result of the reorganization as Visa U.S.A. and Visa International became subsidiaries of Visa Inc.
Professional and consulting fees
Professional and consulting fees consist of fees for consulting, contractors, legal and other professional services. Legal costs for third party services
provided in connection with ongoing legal matters are expensed as incurred.
Depreciation and amortization
Depreciation and amortization include depreciation expenses of properties and equipment, as well as amortization of purchased and internally
developed software. Also included in this amount are depreciation and amortization of the incremental basis in technology and other assets acquired in the
reorganization.
Administrative and other
Administrative and other primarily consist of facilities costs and other corporate and overhead expenses in support of our business, such as travel
expenses.
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