Visa 2009 Annual Report Download - page 86

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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
Under this judgment sharing agreement, Visa U.S.A. members that are signatories will pay their membership proportion of the amount of a final judgment not
allocated to the conduct of MasterCard.
Note 5—Investments and Fair Value Measurements
The Company measures certain assets and liabilities at fair value. See Note 1—Summary of Significant Accounting Policies.
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis
Assets and liabilities carried at fair value on a recurring basis are as follows:
Fair Value Measurements at September 30, 2009
Using Inputs Considered as
Level 1 Level 2 Level 3
(in millions)
Assets
Cash equivalents and restricted cash
Money market funds and time deposits $ 5,977
Investment securities
U.S. government-sponsored agency debt securities $ 169
Canadian government debt securities 7
Equity securities 73
Corporate debt securities $ 10
Mortgage backed securities 6
Other asset backed securities 5
Auction rate securities 13
Derivative financial instruments
Foreign exchange derivative instruments 16
$ 6,050 $ 192 $ 34
Liabilities
Other liabilities
Visa Europe put option $ 346
Foreign exchange derivative instruments $ 96
Level 3 Assets and Liabilities that are Measured at Fair Value on a Recurring Basis
Corporate debt securities, mortgage backed securities and other asset backed securities. These securities have been classified as Level 3 due to a lack
of trading in active markets and a lack of observable inputs in measuring fair value. Valuations for these securities are provided by the Company's pricing
vendors and are based on significant unobservable inputs. The valuations provided by these pricing vendors were insignificant to the Company's consolidated
financial statements.
Auction rate securities. These securities have been classified within Level 3 as their valuation requires substantial judgment and estimation of factors
that are not currently observable in the market due to the lack of trading in these securities.
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