Visa 2013 Annual Report Download - page 119
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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2013
The tax effect of temporary differences that give rise to significant portions of deferred tax
assets and liabilities at September 30, 2013 and 2012, are presented below:
2013 2012
(in millions)
Deferred Tax Assets:
Accrued compensation and benefits ............................ $ 154 $ 103
Comprehensive (income) loss ................................. (8) 102
Investments in joint ventures .................................. 14 11
Accrued litigation obligation ................................... 11,654
Client incentives ............................................ 226 227
Net operating loss carryforward ................................ 31 33
Tax credits ................................................. 22 23
Federal benefit of state taxes .................................. 176 90
Federal benefit of foreign taxes ................................ 13 16
Other ..................................................... 108 92
Valuation allowance ......................................... (25) (13)
Deferred tax assets ............................................ 712 2,338
Deferred Tax Liabilities:
Property, equipment and technology, net ........................ (310) (288)
Intangible assets ............................................ (4,003) (4,027)
Foreign taxes ............................................... (55) (44)
Other ..................................................... (12) (10)
Deferred tax liabilities .......................................... (4,380) (4,369)
Net deferred tax liabilities ....................................... $ (3,668) $ (2,031)
Total net deferred tax assets and liabilities are included in the Company’s consolidated balance
sheets as follows:
September 30,
2013
September 30,
2012
(in millions)
Current deferred tax assets ....................................... $ 481 $ 2,027
Non-current deferred tax liabilities ................................. (4,149) (4,058)
Net deferred tax liabilities ........................................ $ (3,668) $ (2,031)
The decrease in the deferred tax asset for accrued litigation obligation reflects the $1.6 billion
reduction in tax payable due to the fiscal 2013 tax deductions of the $4.4 billion covered litigation
payments. See Note 3— Retrospective Responsibility Plan and Note 20—Legal Matters.
In assessing the realizability of deferred tax assets, management considers whether it is more
likely than not that all or some portion of the deferred tax assets will not be realized. The ultimate
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