Visa 2009 Annual Report Download - page 68

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Table of Contents
VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended
September 30,
2009 2008 2007(1)
(in millions)
Operating Activities
Net income (loss) $ 2,353 $ 804 $ (1,076)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Gain on sale of other investments (Note 6) (473) — —
Depreciation and amortization of property, equipment and technology 226 237 126
Amortization of investments, debt issuance cost and accretion of member deposits — — 11
Share-based compensation 115 74 —
Tax benefit for share-based compensation (7) — —
Restricted stock instruments settled in cash for taxes (22) — —
Fair value adjustment for liability under the Framework Agreement — (35) —
Interest earned on litigation escrow, net of tax (15) (13) —
Net recognized loss on investment securities, including other-than-temporary impairment 5 34 (4)
Asset impairment 11 34 —
Loss on disposal of property, equipment and technology 2 — 2
Minority interest (1) — 5
Amortization of volume and support incentives 1,234 1,161 489
Accrued litigation and accretion 95 1,601 2,913
Equity in earnings of unconsolidated affiliates — (1) (40)
Deferred income taxes 297 (27) (874)
Change in operating assets and liabilities:
Trading securities 34 — —
Accounts receivable (102) (24) (29)
Settlement receivable 526 (543) 32
Volume and support incentives (1,136) (1,378) (507)
Other assets (109) (158) (172)
Accounts payable (3) (10) (20)
Settlement payable (461) 451 (39)
Accrued compensation and benefits (23) (115) 65
Accrued and other liabilities 213 (33) (3)
Accrued litigation (2,201) (1,525) (231)
Member deposits — (3) (143)
Net cash provided by operating activities 558 531 505
Investing Activities
Investment securities, available-for-sale:
Purchases (7) (1,509) (3,070)
Proceeds from sales and maturities 297 2,458 2,769
Distribution from money market investment (Note 6) 884 — —
Reclassification of money market investment — (983) —
Proceeds from sale of other investments 1,008 — —
Cash acquired through reorganization — 1,002 —
Purchases of/contributions to other investments (48) (25) (3)
Dividends/distributions from other investments 2 22 1
Purchases of property, equipment and technology (306) (415) (160)
Proceeds from sale of property, equipment and technology — 4 —
Net cash provided by (used in) investing activities 1,830 554 (463)
67