Visa 2010 Annual Report Download - page 98

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2010
(in millions, except as noted)
At September 30, 2010, property, equipment and technology, net included $143 million in net assets acquired as part of the CyberSource acquisition,
which primarily comprise technology assets. Technology consists of both purchased and internally developed software. Internally developed software
primarily represents software utilized by the VisaNet electronic payment network. At September 30, 2010, and September 30, 2009, accumulated amortization
for technology was $577 million and $434 million, respectively.
At September 30, 2010, estimated future amortization expense on technology placed in service was as follows:
Fiscal (in millions) 2011 2012 2013 2014
2015 and
thereafter Total
Estimated future amortization expense $ 76 $ 67 $ 62 $ 49 $ 77 $ 331
Depreciation and amortization expense related to property, equipment and technology was $265 million, $226 million and $237 million for fiscal 2010,
2009 and 2008, respectively. Included in those amounts was amortization expense on technology of $137 million, $128 million and $129 million for fiscal
2010, 2009, and 2008, respectively.
Note 9—Intangible Assets, Net
At September 30, 2010 and 2009, the Company's indefinite-lived intangible assets consisted of customer relationships of $6.8 billion, Visa tradename
of $2.6 billion and a Visa Europe franchise right of $1.5 billion, all of which were acquired as part of the Company's October 2007 reorganization. Customer
relationships represent the value of relationships with clients from the acquired entities. Tradename represents the value of the Visa brand utilized by the
acquired entities. Visa Europe's franchise right represents the value of the right to franchise the use of the Visa brand, use of Visa technology and access to the
overall Visa network in the Visa Europe region. The Company did not have any finite-lived intangible assets at September 30, 2009.
In July 2010, the Company acquired finite-lived intangible assets from CyberSource consisting of customer relationships, primarily reflecting its online
merchant customer base; reseller relationships, primarily reflecting its referral partnerships that generate new merchant clients; and tradenames, representing
the value of the CyberSource and Authorize.Net brands associated with their online payment solutions. See Note 6—CyberSource Acquisition. The fair value
of these intangible assets and related accumulated amortization expense was as follows:
Finite-lived Intangible Assets
September 30, 2010
Gross
Accumulated
Amortization Net
(in millions)
Finite-lived intangible assets
Customer relationships $ 320 $ (6) $ 314
Reseller relationships 95 (2) 93
Tradenames 190 (2) 188
Total finite-lived intangible assets $ 605 $ (10) $ 595
Indefinite-lived intangible assets 10,883
Total intangible assets, net $ 11,478
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