Visa 2015 Annual Report Download - page 112

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
The consolidated financial statements include the operating results of the acquired businesses
from the dates of acquisition. Pro forma information related to the acquisitions have not been
presented as the impacts are not material to the Company’s financial results.
Note 8—Accrued and Other Liabilities
Accrued liabilities consisted of the following:
September 30,
2015
September 30,
2014
(in millions)
Accrued operating expenses ............................... $ 237 $ 199
Visa Europe put option (See Note 2—Visa Europe)(1) ........... 255 145
Deferred revenue ........................................ 81 82
Accrued marketing and product expenses .................... 20 11
Accrued income taxes (See Note 19—Income Taxes) .......... 75 73
Other .................................................. 200 114
Total .................................................. $ 868 $ 624
Other non-current liabilities consisted of the following:
September 30,
2015
September 30,
2014
(in millions)
Accrued income taxes (See Note 19—Income Taxes)(2) ......... $ 752 $ 855
Employee benefits ........................................ 77 92
Other .................................................. 68 58
Total ................................................... $ 897 $ 1,005
(1) On November 2, 2015, the Company and Visa Europe amended the Visa Europe put option. At
September 30, 2015, the fair value of the put option liability was based on the unamended terms,
and the unamended put option was exercisable at any time at the sole discretion of Visa Europe
with payment required 285 days thereafter. Classification in current liabilities reflects the fact that
the obligation resulting from the exercise of the unamended instrument could become payable
within 12 months at September 30, 2015. The fair value of the unamended put option does not
represent the actual purchase price that the Company may be required to pay if the option is
exercised in its unamended form, which would likely be in excess of $15 billion. During fiscal 2015,
we recorded an increase of $110 million in the fair value of the unamended put option. See Note
2—Visa Europe.
(2) The decrease in non-current accrued income taxes is primarily related to decreases in liabilities for
uncertain tax positions.
Note 9—Debt
Commercial paper program. Visa maintains a commercial paper program to support its working
capital requirements and for other general corporate purposes. Under the program, the Company is
authorized to issue up to $3.0 billion in outstanding notes, with maturities up to 397 days from the date
of issuance. The Company had no outstanding obligations under the program at September 30, 2015.
99