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Table of Contents VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2012
expanding the Company's online payment and related fraud and security management capabilities, and other synergies. The
Company allocates goodwill to reporting units based on the reporting unit expected to benefit from the acquisition. Of the $1.2
billion , approximately $0.8 billion was allocated to a second reporting unit. The remainder was allocated to the Company's original
reporting unit to reflect the incremental growth and synergy this acquisition will provide to the Company's existing business. The
following table summarizes the purchase price allocation.
The following table summarizes the fair value of the acquired intangible assets. See Note 8—Intangible Assets, Net.
In connection with the acquisition, unvested in-the-money stock options held by CyberSource employees on the acquisition
date were terminated and replaced with approximately 1.6 million of the Company’s non-qualified stock options, with a total fair
value of approximately $46 million to be expensed over a period of three years from the original grant date of the CyberSource
options. See Note 17—Share-based Compensation . The Company also expensed as incurred approximately $13 million of
acquisition-related costs during fiscal 2010, which consisted primarily of professional fees related to closing the transaction. There
was
no contingent consideration related to the acquisition.
Note 6—Prepaid Expenses and Other Assets
Prepaid expenses and other current assets consisted of the following:
81
Fair Value
Tangible assets and liabilities (in millions)
Current assets
$
259
Non-current assets
(1)
150
Current liabilities
(45
)
Non-current liabilities
(256
)
Intangible assets
605
Goodwill
1,239
Net assets acquired
$
1,952
(1)
Non-current assets include $122 million of technology assets acquired, which have a weighted-average useful life of 7 years
and are recognized in property, equipment and technology, net, on the consolidated balance sheets.
Fair Value
Weighted-
Average
Useful Life
(in millions)
Customer relationships
$
320
10
Reseller relationships
95
9
Tradenames
190
15
Total amortizable intangible assets
$
605
12