Visa 2009 Annual Report Download - page 70

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2009
(in millions, except as noted)
Note 1—Summary of Significant Accounting Policies
Organization—Visa Inc. ("Visa" or the "Company") is a global payments technology company that connects consumers, businesses, banks and
governments around the world, enabling them to use digital currency instead of check and cash. The Company provides financial institutions with payment
processing platforms that encompass consumer credit, debit, prepaid and commercial payments, and facilitate global commerce through the transfer of value
and information among financial institutions, merchants, consumers, businesses and government entities. The Company does not issue cards, set fees, or
determine the interest rates consumers will be charged on Visa-branded cards, which are the independent responsibility of the Company's issuing customers.
In order to respond to industry dynamics and enhance Visa's ability to compete, Visa undertook a reorganization in October 2007, and in March 2008 the
Company completed its initial public offering (the "IPO"). See Note 2—The Reorganization.
Consolidation and basis of presentation—The consolidated financial statements include the accounts of Visa Inc. and its consolidated entities and are
presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company consolidates all entities that
are controlled by ownership of a majority voting interest as well as variable interest entities for which the Company is the primary beneficiary. All significant
intercompany accounts and transactions are eliminated in consolidation. Certain reclassifications, not affecting net income, have been made to prior period
information to conform to the current period presentation format.
Prior to the October 2007 reorganization, Visa operated as five corporate entities related by ownership and membership: Visa U.S.A., Visa International
Service Association ("Visa International" comprising the operating regions of Asia Pacific ("AP"), Latin America and Caribbean ("LAC"), and Central and
Eastern Europe, Middle East and Africa ("CEMEA")), Visa Canada Inc. ("Visa Canada"), Inovant LLC ("Inovant"), and Visa Europe Limited ("Visa
Europe"). See Note 2—The Reorganization. Beginning October 1, 2007, the Company's consolidated results include Visa U.S.A., Visa International, Visa
Canada and Inovant. Visa Europe did not become a subsidiary of Visa Inc. as part of the reorganization. See Note 3—Visa Europe. Consolidated results for
the year ended September 30, 2007 are those of Visa U.S.A., the accounting acquirer in the reorganization.
During the first quarter of fiscal 2009, the Company formed Visa Processing Services, Ltd. ("VPS") and issued a 30% minority interest to and executed
a joint venture agreement with Yalamanchili International Pte. Ltd., a payments processor and software company that will enable VPS to extend multi-
currency and multi-language debit, credit and prepaid processing capabilities outside of the United States. The Company retained the remaining 70% interest
in VPS, which is consolidated in the financial statements.
In fiscal 2010, the Company will report non-controlling interests (previously referred to as minority interests) as a component of equity. The adoption
will primarily impact the presentation of the consolidated financial statements including all comparable periods.
The Company has one operating and reportable segment, "Payment Services." The Company's activities are interrelated and each activity is dependent
upon and supportive of the other. Accordingly all significant operating decisions are based on analysis of Visa Inc. as a single global business.
Use of estimates—The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and
assumptions about future events. These estimates and
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