Visa 2009 Annual Report Download - page 91

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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
receive total distributions which would be equivalent to a per share value of $0.987 based on certain assumptions. On September 23, 2009, the Court held a
hearing where the judge considered a proposed plan by the U.S. Securities and Exchange Commission to distribute the Fund's remaining assets. Applying this
per share value to Visa's unredeemed shares at September 30, 2009 would result in an additional distribution totaling approximately $86 million. Based on
recent developments, the Company believes it is likely that the Fund will liquidate and distribute the remaining assets within a twelve month period, and has
therefore included the Reserve Primary Fund balance as a current asset at September 30, 2009. See Note 5—Investments and Fair Value Measurements and
Note 21—Legal Matters. On October 5, 2009, the Company received an additional $19 million distribution from the Fund.
The other investment balance represents equity investments in privately-held companies. On June 29, 2009, the Company sold its investment in
VisaNet do Brasil for proceeds of approximately $1.0 billion, which was received on July 2, 2009. Prior to the sale, the Company accounted for the
investment under the cost method with a book value of approximately $535 million, reflected in other non-current assets on its balance sheet. Approximately
$517 million of the book value was recorded in the reorganization as part of the allocation of the purchase price to acquired assets and liabilities. The
Company recognized a pre-tax gain of $473 million in investment income, net on its statement of operations as a result of the sale. The amount of the gain net
of tax was $237 million. The decrease in other non-current assets was offset by $50 million of new investments in the fourth quarter of fiscal 2009.
Note 7—Property, Equipment and Technology
Property, equipment and technology, net consisted of the following:
September 30,
2009
September 30,
2008
(in millions)
Land $ 71 $ 71
Buildings and building improvements 629 369
Furniture, equipment and leasehold improvements 598 519
Construction-in-progress 43 266
Technology 688 531
Total property, equipment and technology 2,029 1,756
Accumulated depreciation and amortization (825) (676)
Property, equipment and technology, net $ 1,204 $ 1,080
Construction-in-progress balance at September 30, 2008 primarily reflects costs related to the construction of the Company's east coast data center,
which commenced operations in fiscal 2009.
Technology consists of both purchased and internally developed software. Internally developed software represents software utilized by the VisaNet
electronic payment network. At September 30, 2009, and September 30, 2008, accumulated amortization for technology was $434 million and $304 million,
respectively.
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