Visa 2008 Annual Report Download - page 78

Table of Contents
exchange rate fluctuations. Given the proximity of the 2008 fiscal year end to a weekend, we carried a higher level of multi-currency transactions
in our net settlement balances. This use of cash represents the net of the increases in settlement receivable and increases in settlement payable
during fiscal 2008;
• Use of cash reflecting annual compensation benefit payments, offset by accruals for current fiscal year compensation benefits, reflected as a
reduction of $115 million in accrued compensation; and
• Use of cash reflecting volume and support incentive payments of $1,378 million, off-set by amortization on volume and support incentives of
$1,161 million, for a net use of cash of $217 million.
These uses of cash were offset by deferred taxes payable on income provided by operations, depreciation and amortization and other non-cash items, as
well as changes in other operating assets and liabilities.
Fiscal 2007
Net cash provided by operating activities increased $55 million in fiscal 2007 compared to the prior year. The increase primarily reflected the absence
of a substantial program payment in connection with Visa U.S.A.'s Visa Check card program in the prior year. The increase also reflects higher non-cash
accruals for accrued compensation and benefits.
Investing Activities
Fiscal 2008
Cash provided by investing activities was $554 million for fiscal 2008. Cash flows from investing activities primarily reflect $1,002 million of cash
acquired through the reorganization and net cash proceeds from the sales and maturities of investment securities of $949 million due to a shift in investments
from debt securities to shorter-term cash equivalents. We also purchased property, equipment and technology of $415 million primarily related to the new
data center under construction on the east coast, contributed $25 million to other investments and received distributions of $22 million from other
investments. In addition, in September 2008, our $953 million investment in the Primary Reserve Fund was reclassified from cash equivalents to other current
assets on the Company's consolidated balance sheet. See further discussion under "Sources of Liquidity," below, and Note 7—Prepaid Expenses and Other
Assets to our consolidated financial statements included elsewhere in this report.
Fiscal 2007
The increase in net cash used in investing activities in fiscal 2007 is primarily driven by facilities and equipment purchases related to the new data
center discussed above. In addition, investment securities purchasing activity, net of sales and maturities, was higher during fiscal 2007.
Financing Activities
Fiscal 2008
Cash provided by financing activities was $3,624 million for fiscal 2008. This amount includes IPO related activities as follows:
• Source of cash reflecting proceeds from the issuance of class A common stock of $19.1 billion, net of issuance costs of $550 million;
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