Visa 2015 Annual Report Download - page 107

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
If the Company were required to perform a quantitative assessment for impairment testing of
goodwill and indefinite-lived intangible assets, the fair values would generally be estimated using an
income approach. As the assumptions employed to measure these assets on a non-recurring basis are
based on management’s judgment using internal and external data, these fair value determinations are
classified as Level 3 in the fair value hierarchy. The Company completed its annual impairment review
of its indefinite-lived intangible assets and goodwill as of February 1, 2015, and concluded that there
was no impairment. No recent events or changes in circumstances indicate that impairment existed at
September 30, 2015. See Note 1—Summary of Significant Accounting Policies.
Other Financial Instruments not Measured at Fair Value
The following financial instruments are not measured at fair value on the Company’s consolidated
balance sheet at September 30, 2015, but require disclosure of their fair values: time deposits
recorded in prepaid expenses and other current assets, settlement receivable and payable, and
customer collateral. The estimated fair value of such instruments at September 30, 2015, approximates
their carrying value due to their generally short maturities. If measured at fair value in the financial
statements, these financial instruments would be classified as Level 2 in the fair value hierarchy.
Investments
Trading Investment Securities
Trading investment securities include mutual fund equity security investments related to various
employee compensation and benefit plans. Trading activity in these investments is at the direction of
the Company’s employees. These investments are held in trust and are not available for the
Company’s operational or liquidity needs. Interest and dividend income and changes in fair value are
recorded in non-operating income, and offset in personnel expense on the consolidated statements of
operations. As of September 30, 2015 and 2014, trading investment securities totaled $66 million and
$69 million, respectively.
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