Visa 2013 Annual Report Download - page 55

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repatriate these funds for use in the United States, we would be required to accrue and pay U.S. taxes
on the amount of undistributed earnings in those subsidiaries, which we estimate to be approximately
$3.8 billion. It is our intent to indefinitely reinvest the majority of these funds outside of the United
States, and our current plans do not demonstrate a need to repatriate them to fund our operations in
the United States.
Available-for-sale investment securities. Our investment portfolio is designed to invest excess
cash in securities which enables us to meet our working capital and liquidity needs. Our investment
portfolio primarily consists of debt securities issued by the U.S. Treasury or U.S. government-
sponsored agencies. The majority of these investments, $2.8 billion, are classified as non-current as
they have stated maturities of more than one year from the balance sheet date. However, these
investments are generally available to meet short-term liquidity needs.
Factors that may impact the liquidity of our investment portfolio include, but are not limited to,
changes to credit ratings of the securities, uncertainty related to regulatory developments, actions by
central banks and other monetary authorities, and the ongoing strength and quality of credit markets.
We will continue to review our portfolio in light of evolving market and economic conditions. However, if
current market conditions deteriorate, the liquidity of our investment portfolio may be impacted and we
could determine that some of our investments are impaired, which could adversely impact our financial
results. We have policies that limit the amount of credit exposure to any one financial institution or type
of investment. See Item 1A—Risk Factors included elsewhere in this report.
Commercial paper program. We maintain a commercial paper program to support our working
capital requirements and for other general corporate purposes. On February 7, 2013, we replaced the
existing $500 million program with a new commercial paper program. Under the new program, we are
authorized to issue up to $3.0 billion in outstanding notes, with maturities up to 397 days from the date
of issuance. We had no outstanding obligations under the new program at September 30, 2013. See
Note 9—Debt to our consolidated financial statements.
Credit facility. On January 31, 2013, we entered into an unsecured $3.0 billion revolving credit
facility. This credit facility, which expires on January 30, 2014, replaced our existing $3.0 billion credit
facility, which would have expired on February 15, 2013. The new credit facility contains covenants and
events of default customary for facilities of this type. There were no borrowings under the new credit
facility and we were in compliance with all related covenants at September 30, 2013. See Note 9—
Debt to our consolidated financial statements.
Universal shelf registration statement. In July 2012, we filed a registration statement with the SEC
using a shelf registration process. As permitted by the registration statement, we may, from time to
time, sell shares of debt or equity securities in one or more transactions. This registration statement
expires in July 2015.
Litigation escrow account. Pursuant to the terms of the retrospective responsibility plan, we
maintain a litigation escrow account from which monetary liabilities from settlements of, or judgments
in, the covered litigation will be payable. When we fund the litigation escrow account, the shares of
class B common stock held by our stockholders are subject to dilution through an adjustment to the
conversion rate of the shares of class B common stock to shares of class A common stock. See
Note 3—Retrospective Responsibility Plan and Note 20—Legal Matters to our consolidated financial
statements. The balance in this account at September 30, 2013, was $49 million and is reflected as
restricted cash in our consolidated balance sheet. As these funds are restricted for the sole purpose of
making payments related to the covered litigation matters, as described below under Uses of Liquidity,
we do not rely on them for other operational needs.
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