Visa 2009 Annual Report Download - page 51

Table of Contents
available credit facilities. See Note 3—Visa Europe, Note 10—Debt, Note 18—Commitments and Contingencies, and Note 21—Legal Matters to our
consolidated financial statements.
Payments Due by Period
Less than
1 Year
1-3
Years
3-5
Years
More than
5 Years Total
(in millions)
Purchase orders(1) $ 516 $ 62 $ 2 $ — $ 580
Leases(2) 54 87 37 14 192
Volume and support incentives(3) 1,374 2,044 1,284 570 5,272
Marketing and sponsorships(4) 150 239 162 7 558
Litigation settlement payments 975 420 — — 1,395
Debt 16 30 17 4 67
Other(5) 93 — — — 93
Total(6, 7) $ 3,178 $ 2,882 $ 1,502 $ 595 $ 8,157
(1) Represents agreements to purchase goods and services that are enforceable and legally binding and that specify significant terms, including: fixed or
minimum quantities to be purchased and fixed, minimum or variable price provisions, and the approximate timing of the transaction.
(2) Includes both operating and capital leases. Visa leases certain premises, equipment and software licenses under leases with varying expiration dates.
(3) Represents non-cancelable agreements with financial institutions and merchants for various programs designed to build sales volume and increase
payment product acceptance. These agreements, which range in term from one to thirteen years, provide card issuance, marketing and program support
based on specific performance requirements. Payments under these agreements will be offset by revenues earned from higher corresponding payments
and transaction volumes. These payment amounts are estimates and will change based on customer performance, execution of new contracts, or
amendments to existing contracts.
(4) Visa is a party to contractual sponsorship agreements ranging from less than one year to eight years. These contracts are designed to help us increase
Visa-branded cards and volumes. Over the life of these contracts, Visa is required to make payments in exchange for certain advertising and
promotional rights. In connection with these contractual commitments, Visa has an obligation to spend certain minimum amounts for advertising and
marketing promotion over the contract terms.
(5) Included dividend amount of $93 million as dividends were declared on October 20, 2009 and will be paid on December 1, 2009 to all holders of record
of Visa's common stock as of November 16, 2009.
(6) We have liabilities for uncertain tax positions of $397 million, net of offsetting tax benefits associated with the correlative effects of state and foreign
income taxes. At September 30, 2009, we also accrued $22 million of interest and $5 million of penalties associated with our uncertain tax positions.
We cannot determine the range of cash payments that will be made and the timing of the cash settlements with our uncertain tax positions. Therefore,
no amounts related to these obligations have been included in the table.
(7) Visa granted a perpetual put option to Visa Europe, which if exercised, will require us to purchase all of the outstanding shares of capital stock of Visa
Europe from its members. Due to the perpetual nature of the instrument and the various economic conditions, which could exist when the put is
exercised, the ultimate amount and timing of Visa's obligation, if any, cannot be reliably estimated. Therefore, no amounts related to this obligation
have been included in the table. The fair value of the Visa Europe put option itself totaling $346 million at September 30, 2009 has also been excluded
from this table as it does not represent the amount or an estimate of the amount of Visa's obligation in the event of exercise. See Liquidity and Critical
Accounting Estimates sections of this Management's Discussion and Analysis and Note 3—Visa Europe to our consolidated financial statements.
50