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10-Q
false
N.A.
2009-06-30
VISA INC.
0001403161
V
--09-30
Yes
No
Yes
Large Accelerated Filer
240000000
-779000000
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 3—Fair Value Measurements</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Effective October 1, 2008, the
Company adopted SFAS No. 157, <i>Fair Value Measurements</i>
(“SFAS 157”), for assets and liabilities which are
required to be measured at fair value. SFAS 157 establishes a
framework for measuring fair value and related disclosures. SFAS
157 has the following key elements:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td width="5%"><font size="1"> </font></td>
<td valign="top" align="left" width="2%"><font face="ARIAL" size=
"2">•</font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">Defines fair value as
the exit price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market
participants at the measurement date;</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td width="5%"><font size="1"> </font></td>
<td valign="top" align="left" width="2%"><font face="ARIAL" size=
"2">•</font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">Establishes a
three-level hierarchy (“valuation hierarchy”) for fair
value measurements;</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td width="5%"><font size="1"> </font></td>
<td valign="top" align="left" width="2%"><font face="ARIAL" size=
"2">•</font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">Requires consideration
of the Company’s creditworthiness when valuing liabilities;
and</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td width="5%"><font size="1"> </font></td>
<td valign="top" align="left" width="2%"><font face="ARIAL" size=
"2">•</font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">Expands disclosures
about instruments measured at fair value.</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!--##PBStart##-->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The valuation hierarchy considers the
transparency of inputs used to value assets and liabilities as of
the measurement date. The less transparent or observable the inputs
used to value assets and liabilities, the lower the classification
of the assets and liabilities in the valuation hierarchy. A
financial instrument’s classification within the valuation
hierarchy is based on the lowest level of input that is significant
to its fair value measurement. The three levels of the valuation
hierarchy and the classification of the Company’s financial
assets and liabilities within the hierarchy are as
follows:</font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Level 1</i>—Inputs to the
valuation methodology are unadjusted quoted prices in active
markets for identical assets or liabilities. The fair value of the
Company’s cash equivalents (money market funds) and mutual
fund equity securities are based on quoted prices and are therefore
classified as Level 1.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Level 2</i>—Inputs to the
valuation methodology include:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td width="5%"><font size="1"> </font></td>
<td valign="top" align="left" width="2%"><font face="ARIAL" size=
"2">•</font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">quoted prices in active
markets for similar (not identical) assets or
liabilities;</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td width="5%"><font size="1"> </font></td>
<td valign="top" align="left" width="2%"><font face="ARIAL" size=
"2">•</font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">quoted prices for
identical or similar assets in markets with insufficient volume or
infrequent transactions (less active markets);</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td width="5%"><font size="1"> </font></td>
<td valign="top" align="left" width="2%"><font face="ARIAL" size=
"2">•</font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">inputs other than
quoted prices that are observable for the asset or liability (for
example, interest rates or yield curves); and</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td width="5%"><font size="1"> </font></td>
<td valign="top" align="left" width="2%"><font face="ARIAL" size=
"2">•</font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">model-driven valuations
in which all significant inputs are observable or can be derived
principally from or corroborated by observable market data for
substantially the full term of the assets or
liabilities.</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Level 2 assets include U.S.
government-sponsored debt securities, tax-exempt municipal bonds
issued in the U.S., Canadian government debt securities, and
foreign exchange derivative instruments. The fair value of the
Company’s Level 2 assets is based on quoted prices in active
markets for similar assets, and other observable inputs. Level 2
liabilities include foreign exchange derivative instruments in a
liability position. Foreign exchange derivative instruments are
valued using inputs that are observable in the market or can be
derived principally from or corroborated with observable market
data.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Level 3</i>—Inputs to the
valuation methodology are unobservable and significant to the fair
value measurement. Inputs reflect the use of significant management
judgment. These values are generally determined using pricing
models for which the assumptions utilize estimates of market
participant assumptions. Level 3 assets include the Company’s
auction rate securities, corporate debt securities, mortgage backed
securities and other asset backed securities. Level 3 liabilities
include the Visa Europe put option.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font><font size="1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Assets and Liabilities that are Measured at Fair Value
on a Recurring Basis</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company’s assets and
liabilities carried at fair value on a recurring basis are as
follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="68%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="8"><font face="ARIAL" size=
"1"><b>Fair Value Measurements at June 30, 2009<br />
Using Inputs Considered as</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>Level 1</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>Level 2</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>Level 3</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="middle" colspan="8"><font face="ARIAL"
size="1"><b>(in millions)</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Assets</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Cash equivalents and restricted cash</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Money market funds and time deposits</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">5,604</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Investment securities</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">U.S. government-sponsored debt securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">169</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Canadian government debt securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">6</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Tax-exempt municipal bonds</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">4</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Equity securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">83</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Corporate debt securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">13</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Mortgage backed securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">13</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other asset backed securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">10</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Auction rate securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">13</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Derivative financial instruments</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Foreign exchange derivative instruments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">24</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>5,687</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>203</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>49</b></font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Liabilities</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Other liabilities</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Visa Europe put option</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">346</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Foreign exchange derivative instruments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">68</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Level 3 Assets and Liabilities that are Measured at
Fair Value on a Recurring Basis</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Corporate debt securities, mortgage
backed securities and other asset backed securities.</i> These
securities have been classified as Level 3 due to a lack of trading
in active markets for these securities and a lack of observable
inputs. These securities were priced using non-binding market
consensus prices that the Company was unable to corroborate with
observable market data. Non-binding market consensus prices are
based on the proprietary models of pricing providers and brokers
that utilize observable market data as valuation inputs and are
also based on internal assumptions of these pricing providers and
brokers.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Auction rate securities.</i> These
securities have been classified within Level 3 as their valuation
requires substantial judgment and estimation of factors that are
not currently observable in the market due to the lack of trading
in these securities.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Visa Europe Put Option Agreement</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company granted Visa Europe a
perpetual put option, which if exercised, will require Visa Inc. to
purchase all of the outstanding shares of capital stock of Visa
Europe from its members. Visa Europe may exercise the put option at
any time. The purchase price of the Visa Europe shares under the
put option is based upon a formula that, subject to certain
adjustments, applies Visa Inc.’s forward price-to-earnings
multiple (the “P/E ratio”) at the time the option is
exercised (as defined in the option</font> <!--##PBStart##-->
<!-- 28 Begin_Flowing_Text * DO NOT REMOVE OR EDIT --><font face=
"ARIAL" size="2">agreement) to Visa Europe’s projected
sustainable adjusted net operating income for the forward 12-month
period (“adjusted sustainable income”). Visa
Europe’s adjusted sustainable income is calculated under the
terms of the put option agreement and includes potentially material
adjustments for cost synergies and other negotiated
items.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">At June 30, 2009, the Company
determined the fair value of the put option to be approximately
$346 million. While this amount represents the fair value of the
put option at June 30, 2009, it does not represent the actual
purchase price that the Company may be required to pay if the
option is exercised, which could be several billion dollars or
more. The fair value of the put option represents the value of Visa
Europe’s option, which under certain conditions could
obligate the Company to purchase its member equity interest for an
amount above fair value. While the put option is in fact non
transferable, its fair value represents the Company’s
estimate of the amount the Company would be required to pay a third
party market participant to transfer the potential obligation in an
orderly transaction.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The fair value of the put option is
computed using probability-weighted models designed to estimate the
Company’s liability assuming various possible exercise
decisions that Visa Europe could make under different economic
conditions in the future, including the possibility that Visa
Europe will never exercise its option. The most significant of
these estimates are the assumed probability that Visa Europe will
elect to exercise its option and the estimated differential between
the P/E ratio and the P/E ratio applicable to Visa Europe on a
stand alone basis at the time of exercise, which the Company refers
to as the “P/E differential”.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Exercise of the put option is at the
sole discretion of Visa Europe (on behalf of the Visa Europe
shareholders pursuant to authority granted to Visa Europe, under
its articles of association). The Company estimates the assumed
probability of exercise based on reasonably available information
including, but not limited to: (i) Visa Europe’s stated
intentions; (ii) indications that Visa Europe is preparing to
exercise as reflected in its reported financial results;
(iii) evaluation of market conditions, including the
regulatory environment, that could impact the potential future
profitability of Visa Europe; and (iv) qualitative factors
applicable to Visa Europe’s largest members, which could
indicate a change in their need or desire to liquidate their
investment holdings for capital adequacy or other purposes. Factors
impacting the assumed P/E differential used in the calculation
include material changes in the P/E ratio of Visa Inc. and those of
a group of comparable companies used to estimate the forward
price-to-earnings multiple applicable to Visa Europe.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In determining the fair value of the
put option at June 30, 2009, the Company assumed a 40%
probability of exercise by Visa Europe at some point in the future
and a P/E differential of 5.3x at the time of exercise. These
assumptions are consistent with those used in the valuation of the
put option at September 30, 2008.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The assumed probability that Visa
Europe will elect to exercise its option and the estimated P/E
differential are unobservable and therefore this liability is
classified within the valuation hierarchy as Level 3. This
liability is carried at estimated fair value in other liabilities
on the Company’s consolidated balance sheet with changes in
fair value included in the Company’s consolidated statement
of operations. There was no change in the fair value of the put
option from October 1, 2008 to June 30, 2009.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font><font size="1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The tables below provide a roll-forward
of the Company’s Level 3 investments which are measured at
fair value on a recurring basis from October 1, 2008 to
June 30, 2009:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="54%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="17"><font face="ARIAL" size="1"><b>Financial
Assets Using Significant Unobservable Inputs<br />
(Level 3)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size="1"><b>Corporate<br />
Debt<br />
Securities</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size="1"><b>Mortgage<br />
Backed<br />
Securities</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size="1"><b>Other<br />
Asset<br />
Backed<br />
Securities</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size="1"><b>Auction<br />
Rate<br />
Securities</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>Total</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="middle" colspan="17"><font face="ARIAL"
size="1"><b>(in millions)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Balances at October 1, 2008</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">45</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">22</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">23</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">13</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">103</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other than temporary impairment included in investment
income, net</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(3</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(4</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(1</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(8</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Maturities and principal payments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(29</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(5</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(12</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(46</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Transfers in (out) of Level 3</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Balances at June 30, 2009</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>13</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>13</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>10</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>13</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>49</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Assets Measured at Fair Value on a Nonrecurring
Basis</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Certain financial assets are measured
at fair value on a nonrecurring basis and therefore are not
included in the tables above.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Non-marketable equity
investments</i>. The Company’s fair value measurement is
primarily applicable to strategic investments acquired upon the
reorganization in fiscal 2008. If events or circumstances are
present which indicate that these investments may be impaired, the
Company revalues the investments using various assumptions
including financial metrics and ratios of comparable public
companies. The strategic investments are classified as Level 3 due
to the absence of quoted market prices, inherent lack of liquidity,
and the fact that inputs used to measure the fair value are
unobservable and require management judgment. During the three and
nine months ended June 30, 2009, certain events and
circumstances triggered an impairment analysis of certain of the
Company’s non-marketable equity securities which resulted in
recognized losses of $4 million and $7 million, respectively. In
the absence of events or circumstances that would trigger an
impairment assessment, the Company does not consider it practicable
to estimate the fair value of the remaining non-marketable equity
investments. At June 30, 2009, non-marketable equity security
investments accounted for under the cost and equity methods totaled
$50 million in other assets on the consolidated balance sheet.
During the quarter ended June 30, 2009, Visa International
Service Association (“Visa International”), a
wholly-owned subsidiary of the Company, also sold its investment in
Companhia Brasileira de Meios de Pagamento (“VisaNet do
Brasil”). See <i>Note 4—Prepaid Expenses and Other
Assets.</i></font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Reserve Primary Fund.</i> The
Company’s investment in the Reserve Primary Fund (the
“Fund”) was originally recorded as a cash equivalent on
the consolidated balance sheet. At September 30, 2008 and
June 30, 2009, the Company considered its shares in the Fund
to represent an equity investment for which a market price is not
readily determinable. Therefore, the investment is accounted for
under the cost method of accounting and classified within prepaid
expenses and other current assets on the consolidated balance
sheet. The Company has classified this as a Level 3 asset as the
fair value is estimated by discounting the Company’s pro-rata
ownership of the Fund’s underlying investment holdings based
upon an estimate of inherent risk. See <i>Note 4—Prepaid
Expenses and Other Assets</i> for additional information regarding
this asset and <i>Note 12—Legal Matters</i> regarding the
Company’s legal actions regarding this matter.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font><font size="1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In February 2008, the FASB issued FSP
No.157-2, <i>Effective Date of FASB Statement No. 157</i>
(“FSP FAS 157-2”) which permits delayed adoption of
SFAS 157 for certain non-financial assets and liabilities, which
are not recognized at fair value on a recurring basis, until fiscal
years and interim periods beginning after November 15, 2008.
As permitted by FSP 157-2, the Company has elected to delay the
adoption of SFAS 157 for qualifying non-financial assets and
liabilities, such as property, equipment and technology, goodwill,
and intangible assets. The Company is in the process of evaluating
the impact, if any, which the application of SFAS 157 to its
non-financial assets will have on the Company’s consolidated
results of operations and financial position.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In accordance with the disclosure
requirements of FSP FAS 107-1, the estimated fair value of the
Company’s debt at June 30, 2009 is $106 million, based
on an estimate of borrowing rates for debt with similar credit
ratings.</font></p>
</div>
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 10—Commitments and
Contingencies</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Volume and Support Incentives</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company entered into new volume and
support incentive agreements during the nine months ended
June 30, 2009, increasing the Company’s total volume and
support incentive commitment. The Company’s obligation under
these customer agreements is generally amortized as a reduction to
revenue based on management’s estimate of and actual customer
performance under the terms of the incentive agreement. Excluding
anticipated revenue to be earned from higher payments and
transaction volumes in connection with these agreements, the
Company’s potential reduction to revenue related to these
agreements is estimated as follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="84%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="77%"></td>
<td valign="bottom" width="17%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td valign="bottom" nowrap="nowrap">
<p style="WIDTH: 22pt; BORDER-BOTTOM: #000000 1px solid">
<font face="ARIAL" size="1"><b>Fiscal</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>Volume and<br />
Support Incentives</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="middle" colspan="2"><font face="ARIAL"
size="1"><b>(in millions)</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">2009 (remaining three months)</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">241</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">2010</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,144</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">2011</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,111</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">2012</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,031</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">2013</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">857</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Thereafter</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,007</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Total</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>5,391</b></font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The ultimate amounts to be paid under
these agreements may be greater than or less than the estimates
above. Based on these agreements, increases in the incentive
payments are generally driven by increased payment and transaction
volume, and as a result, in the event incentive payments</font>
<!--##PBStart##-->
<!-- 28 Begin_Flowing_Text * DO NOT REMOVE OR EDIT --><font face=
"ARIAL" size="2">exceed this estimate such payments are not
expected to have a material negative effect on the Company’s
financial condition, results of operations or cash
flows.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Funding of the Litigation Escrow Account</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On June 30, 2009, the
Company’s board of directors approved a $700 million funding
of the Escrow Account. The amount was funded on July 16, 2009.
See <i>Note 2—Retrospective Responsibility
Plan</i>.</font></p>
</div>
0.105
282000000
1807000000
6000000
7000000
2363000000
316000000
165000000
<div>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 9—Share-based Compensation</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">During the nine months ended
June 30, 2009, the Company granted 1,288,807 non-qualified
stock options (“Options”), 1,266,721 restricted stock
awards (“RSAs”), and 293,953 restricted stock units
(“RSUs”) to Company employees under the 2007 Equity
Incentive Compensation Plan. The Options had a weighted average
exercise price per share of $56.49, and a weighted average grant
date fair value per share of $23.54. The RSAs and RSUs had weighted
average grant date fair values per share of $56.45 and $56.51,
respectively.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company also made an award of
performance-based shares during the period. The ultimate number of
performance shares that are earned will be between zero and 300,960
depending on the Company’s achievement of specified adjusted
net income performance targets during the one-year period
commencing October 1, 2008. Compensation expense for the
performance awards is initially estimated based on target
performance and is adjusted as appropriate throughout the
performance period. The performance shares vest in two equal
installments on the second and the third anniversary from the date
of grant, subject to earlier vesting in full under certain
conditions including death, disability or retirement.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company accounted for these awards
under the guidance of SFAS No. 123R, <i>Share-Based
Payment</i> (“SFAS 123R”). The Company uses the
straight-line method of attribution for expensing equity awards
with only service conditions. For awards with both service and
performance conditions, the Company uses the graded-vesting method
of expense attribution. Compensation expense is recorded net of
estimated forfeitures, which are adjusted as
appropriate.</font></p>
</div>
-10000000
6000000
6000000
-8000000
473000000
0
225000000
0
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 11—Income Taxes</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The effective income tax rates were 44%
and 41% for the three months ended June 30, 2009 and 2008,
respectively, and 41% and 34% for the nine months ended
June 30, 2009 and 2008, respectively. The rate for the three
months ended June 30, 2009 was higher than the rate for the
same period in the prior year primarily due to the additional
foreign tax attributable to the sale of the Company’s
investment in VisaNet do Brasil. The increase in the rate for the
nine months ended June 30, 2009, compared to the rate for the
same period in fiscal 2008, was primarily due to the additional
foreign tax on the sale of the investment in VisaNet do Brasil, and
a one-time rate reduction in fiscal 2008 from the combined effect
of the loss of a California special deduction upon IPO and the
deferred tax remeasurement benefit due to the change in state tax
apportionment.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Beginning October 1, 2008, the
Company’s subsidiary in Singapore operates under a tax
incentive agreement which is effective through September 30,
2014, and may be extended through September 30, 2023, if
certain additional requirements are satisfied. The tax incentive
agreement is conditional upon certain employment and investment
thresholds being met by the Company. The Company anticipates the
impact in fiscal 2009 to be less than one percent of the
Company’s effective tax rate.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">During the three and nine months ended
June 30, 2009, the Company’s unrecognized tax benefits
related to tax positions taken in the current period increased by
$10 million and $19 million, respectively, all of which would
affect the effective tax rate if recognized. During the three and
nine months ended June 30, 2009, the Company accrued $6
million and $14 million of interest, respectively, and $1 and $4
million of penalties, respectively, related to uncertain tax
positions.</font></p>
</div>
1299000000
528000000
-53000000
77000000
438000000
0
-124000000
-84000000
-10000000
90000000
3000000
557000000
809000000
635000000
-1000000
-2491000000
955000000
767000000
1839000000
468000000
2669000000
-32000000
2000000
-2000000
-4000000
0
0
-21000000
4000000
9000000
1000000
462000000
2646000000
240000000
0
0
1000000
205000000
0
276000000
0
0
20000000
246000000
4000000
8000000
0
5032000000
<div>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 6—Settlement Guarantee
Management</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The indemnification for settlement
losses that the Company provides to its customers creates
settlement risk for the Company due to the difference in timing
between the date of a payment transaction and the date of
subsequent settlement between different customers. The term and
amount of the indemnification are unlimited. Settlement at risk (or
exposure) is estimated based on the sum of the following inputs: 1)
average daily volumes during the quarter multiplied by the
estimated number of days to settle plus a safety margin; 2) four
months of rolling average chargebacks volume; and 3) the total
balance for outstanding travelers cheques. During the first quarter
of fiscal 2009, the Company updated its settlement risk policy and
raised the safety margin from two days to three days, which
increased the Company’s estimated maximum settlement exposure
amount to approximately $37.3 billion at June 30, 2009
compared to $34.8 billion at September 30, 2008. Of these
amounts, $3.4 billion at June 30, 2009 and $3.0 billion at
September 30, 2008, are covered by collateral held by the
Company. The total available collateral balances presented below
are greater than the settlement exposure covered by customer
collateral held by the Company due to instances in which the
available collateral exceeds the total settlement exposure for
certain financial institutions at each period presented.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company requires certain customers
that do not meet its credit standards to post collateral in order
to ensure their performance of settlement obligations arising from
product clearings. At June 30, 2009 and September 30,
2008, the Company maintained collateral as follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
<font size="+0"> </font></p>
<table cellspacing="0" cellpadding="0" width="84%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="70%"></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>June 30,<br />
2009</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>September 30,<br />
2008</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="middle" colspan="5"><font face="ARIAL"
size="1"><b>(in millions)</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Cash equivalents</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>739</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">679</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Pledged securities at market value</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>214</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">150</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Letters of credit</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>712</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">720</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font size=
"+0"><font face="ARIAL" size="2">Guarantees</font><font face=
"ARIAL" size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2,551</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,938</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"><font size="+0">  </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td valign="bottom"><font size="+0">  </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>4,216</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">3,487</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"><font size="+0">  </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td valign="bottom"><font size="+0">  </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style=
"MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">
<font size="+0"> </font></p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="3%"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">Guarantees are provided
primarily by financial institutions to secure the obligations of
their subsidiaries. The Company routinely evaluates the financial
viability of institutions providing the guarantees.</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The estimated probability-weighted
value of the guarantee that the Company provides to its customers
was less than $1 million at June 30, 2009 and
September 30, 2008 and is reflected in accrued liabilities on
the respective consolidated balance sheets.</font></p>
</div>
84000000
<div>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 1—Summary of Significant Accounting
Policies</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Organization</i>—Visa Inc.
(“Visa” or the “Company”) is a stock
corporation incorporated under the laws of the state of Delaware,
United States of America. Visa and its consolidated subsidiaries,
including Visa U.S.A. Inc. (“Visa U.S.A.”), Visa
International Service Association (“Visa
International”), Visa Canada Inc. (“Visa Canada”)
and Inovant LLC (“Inovant”), operate the world’s
largest retail electronic payments network. Visa facilitates global
commerce through the transfer of value and information among
financial institutions, merchants, consumers, businesses and
government entities.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Basis of presentation</i>—The
accompanying unaudited interim consolidated financial statements
are presented in accordance with accounting principles generally
accepted in the United States of America and reflect all normal
recurring adjustments that, in the opinion of management, are
necessary to present fairly such financial statements for the
interim periods. Certain information and footnote disclosures
normally included in annual financial statements have been omitted.
Accordingly these unaudited interim consolidated financial
statements should be read in conjunction with the Visa Inc. Annual
Report on Form 10-K for the year ended September 30, 2008 for
additional disclosures including a summary of the Company’s
significant accounting policies.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Principles of
consolidation</i>—The Company consolidates all entities that
are controlled by ownership of a majority voting interest as well
as variable interest entities for which the Company is the primary
beneficiary. All significant intercompany accounts and transactions
are eliminated in consolidation. Certain reclassifications, not
affecting net income, have been made to prior period information to
conform to the current period presentation format.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Formation and consolidation of new
processing entity</i>—During the first fiscal quarter of
2009, the Company formed Visa Processing Services, Ltd.
(“VPS”) and issued a 30% minority interest to and
executed a joint venture agreement with Yalamanchili International
Pte. Ltd., a payments processor and software company with
operations in Asia. The Company retained the remaining 70%
interest. VPS is expected to extend multi-currency and
multi-language debit, credit and prepaid processing capabilities to
financial institutions, processors and payment companies outside of
the United States of America. VPS is consolidated in the
Company’s financial statements with net assets of $30 million
at June 30, 2009.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2"><i>Recently issued and/or adopted
accounting pronouncements—</i>In February 2007, the Financial
Accounting Standards Board (“FASB”) issued Statement of
Financial Accounting Standards (“SFAS”) No. 159,
<i>The Fair Value Option for Financial Assets and Financial
Liabilities, Including an Amendment to SFAS 115</i> (“SFAS
159”). SFAS 159 allows the measurement of many financial
instruments and certain other assets and liabilities at fair value
on an instrument-by-instrument basis under a fair value option. In
addition, SFAS 159 includes an amendment of SFAS No. 115,
<i>Accounting for Certain Investments in Debt and Equity
Securities</i>, and applies to all entities with available-for-sale
and trading securities. SFAS 159 is effective for fiscal years that
begin after November 15, 2007. The Company adopted SFAS 159 on
October 1, 2008 and elected the fair value option with respect
to mutual fund equity security investments related to various
employee compensation plans, which had previously been reported as
available-for-sale investments. There was no impact to the
consolidated statements of operations as a result of this adoption.
At June 30, 2009, these investments are reported as trading
assets on the consolidated balance sheets as the frequency of
trading activity is dependent upon the actions of the
Company’s employees. Changes in fair value are recorded in
investment income, net, on the consolidated statements of
operations.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In March 2008, the FASB issued SFAS
No. 161, <i>Disclosures about Derivative Instruments and
Hedging Activities—an amendment of FASB Statement
No. 133 (“</i>SFAS 161<i>”).</i> SFAS 161 changes
the disclosure requirements for derivative instruments and hedging
activities. SFAS 161 requires disclosures of how and why an entity
uses derivative instruments, how derivative instruments and related
hedged items are accounted for and how derivative instruments and
related hedged items affect an entity’s financial position,
financial performance and cash flows. The Company adopted SFAS 161
in January 2009 but has not presented separate disclosures required
by SFAS 161 and SFAS 133 because the impact of derivative
instruments is immaterial to the consolidated balance sheets,
statements of operations and statements of comprehensive
income.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In December 2008, the FASB issued FASB
Staff Position (“FSP”) No. FAS 132(R)-1,
<i>Employers’ Disclosures about Postretirement Benefit Plan
Assets</i> (“FSP FAS 132(R)-1”). FSP FAS 132(R)-1
provides guidance on an employer’s disclosures about plan
assets of a defined benefit pension or other postretirement plan.
The disclosures about plan assets required by this FSP are
effective for fiscal years ending after December 15, 2009 and
are not required for earlier periods presented for comparative
purposes. Earlier application is permitted. This FSP impacts
disclosures only and will not have an effect on the Company’s
consolidated financial position or results of operations upon
adoption. The Company plans on adopting FSP FAS 132(R)-1 in fiscal
2010.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In April 2009, the FASB issued FSP No.
FAS 141(R), <i>Accounting for Assets Acquired and Liabilities
Assumed in a Business Combination That Arise from Contingencies</i>
(“FSP FAS 141(R)”)<i>.</i> FSP FAS 141(R) addresses
certain issues raised upon the issuance of SFAS No. 141(R),
<i>Business Combinations</i>, with regard to initial recognition
and measurement, subsequent measurement and accounting, and
disclosure of assets and liabilities arising from contingencies in
a business combination. FSP FAS 141(R) is effective for fiscal
years beginning after December 15, 2008. The Company will
adopt FSP FAS 141(R) on October 1, 2009. The adoption is not
expected to have a material impact on the Company’s
consolidated financial statements.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In April 2009, the FASB issued three
FSPs related to fair value measurements, other-than-temporary
impairments and related disclosures. FSP FAS No. 157-4,
<i>Determining Fair Value When the Volume and Level of Activity for
the Asset or Liability Have Significantly Decreased and Identifying
Transactions That Are Not Orderly</i> (“FSP FAS 157-4”)
provides guidance on how to determine the fair value of assets and
liabilities under SFAS 157, <i>Fair Value Measurements</i>
(“SFAS 157”) when there is no active market or where
the price inputs being used to determine fair value represent
distressed sales.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">FSP FAS No. 115-2 and FAS 124-2,
<i>Recognition and Presentation of Other-Than-Temporary
Impairments</i> (“FSP FAS 115-2”) modifies the
requirements for recognizing other-than-temporary-impairment
(“OTTI”) on debt securities and significantly changes
the existing impairment model for debt securities. It also modifies
the presentation of OTTI losses and increases the frequency of and
expands required disclosures for debt and equity
securities.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">FSP No. FAS 107-1 and APB 28-1,
<i>Interim Disclosures about Fair Value of Financial
Instruments</i> (“FSP FAS 107-1”) requires the
disclosure of the fair value of financial instruments within the
scope of SFAS No. 107, <i>Disclosures about Fair Value of Financial
Instruments</i>, in interim and annual financial statements. The
Company considers the following to be financial instruments: cash
and cash equivalents, restricted cash-litigation escrow, trading
and available-for sale investments, the Reserve Primary Fund (see
<i>Note 4—Prepaid Expenses and Other Assets</i>), accounts
receivable, non-marketable equity investments, customer collateral,
accounts payable, debt, settlement guarantees (see <i>Note
6—Settlement Guarantee Management</i>), derivative
instruments, the Visa</font> <font face="ARIAL" size="2">Europe put
option, and settlement receivable and payable. The estimated fair
value of such instruments at June 30, 2009 approximates their
carrying value as reported on the Company’s consolidated
balance sheets except as otherwise disclosed. See <i>Note
3—Fair Value Measurements</i>.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The three FSPs are effective for
interim periods ending after June 15, 2009. The adoption of
FSP FAS 157-4 and FSP FAS 115-2 did not have a material impact on
the Company’s consolidated financial statements. The Company
has not presented separate disclosures required by FSP FAS 115-2
because its gross unrealized loss positions in debt securities for
the periods presented are not material. At adoption, the credit and
non-credit loss components of debt securities on the
Company’s balance sheet for which OTTI was previously
recognized were not material. The adoption of FSP FAS 107-1 is
disclosure-only.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In May 2009, the FASB issued SFAS
No. 165, <i>Subsequent Events</i> (“SFAS 165”).
SFAS 165 establishes standards of accounting for and disclosure of
events that occur after the balance sheet date but before financial
statements are issued or are available to be issued. SFAS 165
requires entities to disclose the date through which they have
evaluated subsequent events and whether the date corresponds to the
release of their financial statements. The Company adopted SFAS 165
as of July 1, 2009. Subsequent events have been evaluated
through July 30, 2009, the date this quarterly report was
filed with the U.S. Securities and Exchange Commission
(“SEC”).</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In June 2009, the FASB issued SFAS
No. 167, <i>Amendments to FASB Interpretation
No. 46(R)</i> (“SFAS 167”). SFAS 167 changes how a
company determines when an entity that is insufficiently
capitalized or is not controlled through voting (or similar rights)
should be consolidated. The determination of whether a company is
required to consolidate an entity is based on, among other things,
an entity’s purpose and design and a company’s ability
to direct the activities of the entity that most significantly
impact the entity’s economic performance. The Company will
adopt SFAS 167 effective October 1, 2010. Early adoption is
prohibited. The Company is evaluating the impact of adopting SFAS
167 on its consolidated financial statements.</font></p>
</div>
0
20000000
<div>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
</p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 7—Stockholders' Equity</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Class C Common Stock Redemptions and
Conversions</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In October 2008, the Company used
$1.508 billion of net proceeds from the initial public offering
(“IPO”) for the required redemption of 35,263,585
shares of class C (series III) common stock at a redemption price
of $42.77 per share as was required by the Company’s Third
Amended and Restated Certificate of Incorporation. Following the
October 2008 redemption, the remaining 27,499,203 shares of class C
(series III) and class C (series IV) common stock outstanding
automatically converted into shares of class C (series I) common
stock on a one-to-one basis. In December 2008, upon adoption of the
Fifth Amended and Restated Certificate of Incorporation, shares of
class C (series I) common stock were designated as class C common
stock with no series designation.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In October 2008, the Company also
utilized net proceeds from the IPO to fund the redemption of all
class C (series II) common stock. The class C
(series II) common stock was purchased for a cash payment of
$1.138 billion and the return to Visa Europe of the class C
(series II) common stock subscription receivable
outstanding.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Funding of the Litigation Escrow Account</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On December 16, 2008, the
Company’s stockholders approved and adopted the
Company’s Fifth Amended and Restated Certificate of
Incorporation which permits the Company greater flexibility in
funding the Escrow Account. On December 19, 2008, the Company
funded the Escrow Account with $1.1 billion which reduced the
conversion rate applicable to Visa’s class B common
stock outstanding from 0.7143 class A share to
0.6296 class A share, which had the effect of a
repurchase of 20,800,824 class A common stock equivalents. See
<i>Note 2—Retrospective Responsibility
Plan.</i></font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On July 16, 2009, the Company
funded the Escrow Account with an additional $700 million which
reduced the conversion rate applicable to Visa’s class B
common stock outstanding from 0.6296 class A share to
0.5824 class A share, which had the effect of a
repurchase of 11,578,878 class A common stock equivalents. See
<i>Note 2—Retrospective Responsibility
Plan.</i></font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">After giving effect to the July 2009
escrow funding and the corresponding reduction in the conversion
rate applicable to class B common stock outstanding, the
number of class A common shares outstanding on an
“as-converted” basis at June 30, 2009, is as
follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="55%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size=
"1"><b>Shares Outstanding<br />
at June 30,<br />
2009</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Conversion Rate<br />
Into Class A<br />
Common Stock</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>As
Converted</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="middle" colspan="3"><font face="ARIAL"
size="1"><b>(Giving Effect to July 2009<br />
Escrow Account Funding)</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class A common stock</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">449,407,746</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">449,407,746</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class B common stock</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">245,513,385</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.5824</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">142,987,780</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C common stock</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">151,581,349</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.0000</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">151,581,349</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
</tr>
<tr>
<td valign="top"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>846,502,480</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>743,976,875</b></font></td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Special IPO Stock Dividends Received from Cost Method
Investees, Net of Tax</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">During the first half of fiscal 2009,
the Company received 24,449 shares of its own class C common
stock as dividends from cost method investees who were also
shareholders and recorded approximately $1 million in treasury
stock. These stock dividends are recorded as an increase in
additional paid-in capital, net of tax, and are not recorded as
income in the Company’s statements of operations as they are
the same shares issued by the Company as part of its
reorganization. Any value recorded upon their return would be the
result of appreciation in the Company’s own stock, which is
therefore not recorded as income. The value of the treasury stock
was calculated based on other recent class C stock
transactions by other class C shareholders with unrelated
third parties. In December 2008, the Company retired 525,443 shares
of treasury stock previously received through dividends from
another of its cost method investees.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Accelerated Class C Share Release
Program</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On April 27, 2009, the Company
approved a program in which class C stockholders may liquidate
up to 30% of their class C shares anytime after July 1,
2009, subject to certain terms and conditions. The release of the
class C shares does not increase the number of outstanding
shares of the Company</font>
<!-- 28 Begin_Flowing_Text * DO NOT REMOVE OR EDIT --><font face=
"ARIAL" size="2">and there is no dilutive effect to the outstanding
share count from these transactions. The remaining class C
shares will continue to be subject to the general transfer
restrictions that expire on March 25, 2011 under Visa’s
certificate of incorporation. Class C shares sold under this
program will automatically convert to class A shares and will
be tradable in the public market. In order to participate in the
program, class C stockholders will need to apply to
Visa’s transfer agent between July 1 and
September 30, 2009.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Dividends Declared</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On July 22, 2009, the
Company’s board of directors declared a dividend in the
aggregate amount of $0.105 per share of class A common stock
(determined in the case of class B and class C common stock on an
as-converted basis) which will be paid on September 1, 2009 to
all holders of record of the Company’s class A, class B and
class C common stock as of August 14, 2009.</font></p>
</div>
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 5—Pension, Postretirement and Other
Benefits</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company sponsors various qualified
and non-qualified defined benefit pension and postretirement
benefit plans which provide retirement and medical benefits for
substantially all employees residing in the United
States.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The components of net periodic benefit
cost are as follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
<font size="+0"> </font></p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="44%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="14"><font face="ARIAL" size="1"><b>Pension
Benefits</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="14"><font face="ARIAL" size="1"><b>Other
Postretirement Benefits</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"1"><b>3 months ended<br />
June 30,</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"1"><b>9 months ended<br />
June 30,</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"1"><b>3 months ended<br />
June 30,</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"1"><b>9 months ended<br />
June 30,</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>  2009  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>  2008  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>  2009  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>  2008  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>  2009  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>  2008  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>  2009  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>  2008  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="middle" colspan="30"><font face="ARIAL"
size="1"><b>(in millions)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Service cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>13</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">12</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>38</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">37</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">4</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Interest cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>11</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">10</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>34</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">30</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">4</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Expected return on assets</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(12</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(11</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(34</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(32</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Amortization of:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Prior service cost (credit)</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(2</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(3</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(6</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(10</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(1</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(3</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(4</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Actuarial loss</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>4</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>11</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">6</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Settlement loss</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"><font size="+0">  </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total net periodic pension cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>14</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">11</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>43</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">33</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">5</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"><font size="+0">  </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
<td valign="bottom"><font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
<font size="+0"> </font></td>
<td><font size="+0"> </font></td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Based on year to date plan asset
performance and plan activity, the Company expects contributions
from employer assets to the pension and other postretirement
benefit plans for fiscal 2009 to be approximately $104 million
compared to $190 million in the prior year. Recent market
conditions have resulted in an unusually high degree of volatility
associated with certain pension plan assets. Should deterioration
in market conditions continue, the Company’s pension asset
portfolio could be adversely impacted, and the Company may be
required to make additional contributions. The Company will
continue to monitor the performance of pension plan assets and
market conditions in evaluating its contribution to the qualified
pension plan in fiscal 2009.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
</div>
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 12—Legal Matters</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company is party to various legal
and regulatory proceedings. Some of these proceedings involve
complex claims that are subject to substantial uncertainties and
unascertainable damages. Accordingly, except as disclosed, the
Company has not established reserves or ranges of possible loss
related to these proceedings, as at this time in the proceedings,
the matters do not relate to a probable loss and/or amounts are not
reasonably estimable. Although the Company believes that it has
strong defenses for the litigation and regulatory proceedings
described below, it could in the future incur judgments or fines or
enter into settlements of claims that could have a material adverse
effect on the Company’s results of operations, financial
position or cash flows.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company’s litigation
provision includes provisions of approximately $1 million for the
three and nine months ended June 30, 2009, and $50 million and
$342 million for the three and nine months ended June 30,
2008, respectively. The litigation accrual is an estimate and is
based on management’s understanding of its litigation
profile, the specifics of each case, advice of counsel to the
extent appropriate and management’s best estimate of incurred
loss at the balance sheet date. The Company</font>
<!-- 28 Begin_Flowing_Text * DO NOT REMOVE OR EDIT --><font face=
"ARIAL" size="2">is presently involved in the matters described
below and other legal actions, except for those disclosed below as
resolved or settled. From time to time the Company may engage in
settlement discussions or mediations with respect to one or more of
its outstanding litigation matters, either on its own behalf or
collectively with other parties. The Company will continue to
review the litigation accrual and, if necessary, future refinements
to the accrual will be made.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The following table summarizes the
activity related to accrued litigation for the nine months ended
June 30, 2009 and 2008:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="92%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="79%"></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>2009</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>2008</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="middle" colspan="6"><font face="ARIAL"
size="1"><b>(in millions)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Balance at October 1</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,758</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">3,682</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Provision for settled legal matters</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">4</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Provision for unsettled legal matters</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">338</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Settlement obligation to be refunded by Morgan
Stanley</font><font face="ARIAL" size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>65</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">—  </font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Interest accretion on settled matters</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>71</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">105</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Payments on settled matters</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(1,642</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(1,220</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Balance at June 30</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2,253</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2,909</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style=
"MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="3%"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">This balance represents
the amount of the <i>Discover</i> settlement to be refunded to the
Company by Morgan Stanley under a separate agreement. The Company
recorded a corresponding receivable in prepaid and other current
assets on the Company’s consolidated balance sheets at
June 30, 2009.</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b><i>Covered Litigation</i></b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Visa Inc., Visa U.S.A. and Visa
International are parties to certain legal proceedings discussed
below that are subject to the Retrospective Responsibility Plan,
which the Company refers to as the covered litigation. For a
description of the Retrospective Responsibility Plan, see <i>Note
2—Retrospective Responsibility Plan</i>.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>The Discover Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company made its scheduled payments
in each of the first three fiscal quarters of 2009 to Discover
pursuant to the terms of the settlement agreement. Visa has also
received three of four refund payments from Morgan
Stanley.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>The American Express Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">American Express met the performance
criteria set forth in the settlement agreement for each quarter
thus far, including the third fiscal quarter of 2009, and Visa made
each of the corresponding settlement payments.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>The Attridge Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On January 5, 2009, this case was
reassigned to Judge Feinstein. A hearing took place on May 15,
2009 on Defendants’ Motion for Summary Judgment or Summary
Adjudication. On July 1, 2009, the court denied the summary
judgment motion, but ordered the parties to submit affidavits as to
whether further discovery should be conducted prior to the court
rendering judgment on the Motion for Summary
Adjudication.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font><font size="1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>The Interchange Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Multidistrict Litigation Proceedings</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Pursuant to the court’s previous
order, putative class plaintiffs filed their Second Consolidated
Amended Class Action Complaint on January 29, 2009, which also
added Visa Inc. as a defendant. In addition, putative class
plaintiffs filed a Second Supplemental Class Action Complaint (the
“Supplemental Complaint”) against Visa Inc. and several
financial institutions challenging Visa’s reorganization and
IPO under Section 1 of the Sherman Act and Section 7 of
the Clayton Act. In the Supplemental Complaint, putative class
plaintiffs seek unspecified monetary damages and declaratory and
injunctive relief, including an order that the IPO be unwound. On
March 31, 2009, Visa, jointly with other defendants, moved to
dismiss the Supplemental Complaint and the Second Consolidated
Amended Class Action Complaint. Briefing on these motions to
dismiss was completed on July 2, 2009. A hearing on the
motions to dismiss has been set for August 18,
2009.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On January 29, 2009, putative
class plaintiffs served on defendants a reply in support of their
motion seeking to certify a class of merchant’s, and on
June 25, 2009, defendants served a sur-reply in opposition to
the motion. A hearing on the motion for class certification has
been set for August 20, 2009.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>BKS Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On April 1, 2009, plaintiffs BKS
Inc., BKS of LA, Inc. and Keithco Petroleum Inc. filed a complaint
against Visa Inc., Visa U.S.A. and other defendants in the United
States District Court for the Southern District of Mississippi,
which asserts claims similar to those made in the cases transferred
to the Multidistrict Litigation Proceedings. The complaint
states that it is made by the named plaintiffs, as well as all
other similarly situated businesses. It seeks unspecified
treble and punitive damages, as well as damages not to exceed $100
million for each defendant who has acted in violation of
Section 1 of the Sherman Act, damages not to exceed $10
million for each defendant who has acted in violation of
Section 2 of the Sherman Act, damages not to exceed $10,000
for each defendant who has acted in violation of Miss. Code Ann.
sec. 75-21-1, and injunctive, declaratory, and other
relief. On April 9, 2009, Visa filed a Notice of
Potential Tag-Along Action with the Judicial Panel on Multidistrict
Litigation requesting that this case be transferred to the
Multidistrict Litigation Proceedings for coordinated or
consolidated pretrial proceedings. On April 27, 2009, the
Judicial Panel on Multidistrict Litigation entered an order
conditionally transferring this case to the Multidistrict
Litigation Proceedings. On May 11, 2009, plaintiffs filed
a notice of opposition to the conditional transfer order, which
they withdrew on May 26, 2009. Thereafter, this case was
transferred to the Multidistrict Litigation Proceedings.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Gulfside Casino Partnership Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On June 22, 2009, plaintiff
Gulfside Casino Partnership filed a complaint against Visa Inc.,
Visa U.S.A. and other defendants in the United States District
Court for the Southern District of Mississippi, which asserts
claims similar to those made in the cases transferred to the
Multidistrict Litigation Proceedings. It seeks unspecified
treble and punitive damages, as well as damages not to exceed $100
million for each defendant who has acted in violation of
Section 1 of the Sherman Act, damages not to exceed $10
million for each defendant who has acted in violation of
Section 2 of the Sherman Act, damages not to exceed $10,000
for each defendant who has acted in violation of Miss. Code Ann.
sec. 75-21-1, and injunctive, declaratory, and other
relief. On June 25, 2009, Visa filed a Notice of</font>
<!-- 28 Begin_Flowing_Text * DO NOT REMOVE OR EDIT --><font face=
"ARIAL" size="2">Potential Tag-Along Action with the Judicial Panel
on Multidistrict Litigation requesting that this case be
transferred to the Multidistrict Litigation Proceedings for
coordinated or consolidated pretrial proceedings. Thereafter,
this case was transferred to the Multidistrict Litigation
Proceedings.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b><i>Other Litigation</i></b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Retailers’ Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">In the <i>In re Visa Check/MasterMoney
Antitrust Litigation</i>, on March 6, 2009, plaintiffs filed a
motion to seek a potential securitization of the future MasterCard
settlement payments, in which plaintiffs indicated that they also
intend to pursue a potential securitization of Visa’s future
settlement payments. After a fairness hearing on April 24,
2009, the court executed an order granting plaintiffs’ motion
regarding the potential securitization of the future MasterCard
settlement payments. On July 2, 2009, plaintiffs filed a
motion seeking approval of an agreement for MasterCard to pre-pay
its future settlement payments at a discount instead of proceeding
with a securitization of those payments.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%">
<font face="ARIAL" size="2"><i>Retailers’
“Opt-Outs”</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Visa and GMRI entered into a settlement
agreement, pursuant to which the GMRI case was dismissed on
November 21, 2008.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%">
<font face="ARIAL" size="2"><i>“Indirect Purchaser”
Actions</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Visa made its final settlement payment
in the West Virginia case on May 14, 2009.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>New Zealand Interchange Proceedings</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On February 23, 2009, the Commerce
Commission filed a Second Amended Statement of Claim which alleges
that the setting of default interchange rates by Visa post-IPO
still contravenes the Commerce Act. On March 20, 2009, the
retailers also filed a Second Amended Statement of Claim with
similar allegations. On April 27, 2009, Visa filed and served
Statements of Defense in response to both the Commerce
Commission’s and the retailers’ Second Amended
Statements of Claim. Visa and counsel for the Commerce Commission
are engaged in settlement discussions which have resulted in a
formal proposal by Visa to the Commerce Commission seeking to
resolve its action.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Currency Conversion Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On July 2, 2009, the court
received from the special master a supplemental report regarding
the results of the audit program, their effect on the estimated
refund amounts for claimants and recommendations concerning
outstanding issues related to claims administration. The court has
scheduled a hearing for August 6, 2009 concerning the
recommendations set forth in the special master’s
report.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Morgan Stanley Dean Witter/Discover
Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Commission filed an additional
rejoinder to Visa’s rejoinder dated February 27, 2009.
On July 24, 2009, Visa International and Visa Europe filed a
request for measures of organisation (seeking to have the court
pose questions to the Commission) and for decisions on the
admissibility of certain evidence.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Parke Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">As of February 13, 2009, the
parties executed a settlement agreement. The settlement amount is
not considered material to the Company’s consolidated
financial statements.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>The ATM Exchange Litigation</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On April 30, 2009, the court
issued an Order allowing for certain additional discovery and
requiring that all additional discovery be completed by
July 1, 2009, which was later extended by one week. Both
plaintiff and Visa submitted supplemental expert reports. A final
pretrial and summary jury trial charging conference was held on
July 21, 2009, with the summary jury trial scheduled for
August 4, 2009. A trial date has been tentatively set for
September 8, 2009.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>U.S. Department of Justice Civil Investigative Demands
(CIDs)</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On February 5, 2009, the Division
informed Visa that it closed the investigations that led to the
issuance of the September 27, 2007 and February 26, 2008
CIDs.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>State of Ohio Investigative Demand</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On May 15, 2009, the Office of the
Attorney General for the State of Ohio issued an Investigative
Demand to Visa Inc. seeking information regarding a potential
violation of Chapter 1331 of the Ohio Revised Code, Ohio’s
antitrust law. The Investigative Demand seeks copies of documents,
data and narrative responses that Visa has produced to the
Antitrust Division of the United States Department of Justice (the
“Division”) pursuant to the Civil Investigative Demand,
or “CID,” issued by the Division on October 10,
2008. The Ohio Attorney General’s Investigative Demand
focuses on certain Visa U.S.A. policies relating to merchant
acceptance practices, including Visa U.S.A.’s policies
regarding merchant surcharging and merchants’ ability to
steer customers to other forms of payment.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Hill Country Custom Cycles</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On December 22, 2008, the court
issued an order dismissing without prejudice the case against Visa.
Pursuant to the Court’s January 26, 2009 Order, the
plaintiff must file an Amended Complaint no later than May 1,
2009 if it chooses to refile. On April 28, 2009, the parties
reached an agreement in principle to settle the litigation. The
settlement amount is not considered material to the Company’s
consolidated financial statements.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Venezuela Interchange Proceedings</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Visa was served on November 28,
2008 and filed its formal brief on March 26, 2009. The evidentiary
phase of the investigation has concluded, but the competition
authority has not yet issued any findings as a result of the
investigation.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>European Interchange Proceedings</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On April 3, 2009, the European
Commission issued a Statement of Objections (“SO”) to
Visa Europe, Visa International and Visa Inc. alleging a breach of
European competition law. Visa Inc. and Visa International were
served with the Statement of Objections on June 1, 2009. The
SO alleges a breach of Article 81 of the EC Treaty and Article 53
of the EEA Agreement The SO is directed to Visa Inc. and Visa
International as to Honor All Cards, the no-surcharge rule and what
the Commission alleges is the “subsidiary application of the
Inter-Regional MIFs to the intra-regional POS transactions with
consumer cards.” Pursuant to existing agreements among
the parties, Visa Europe is obligated to indemnify Visa
International and Visa in connection with this proceeding,
including payment of any fines that may be imposed.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font><font size="1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Canadian Competition Bureau Proceedings</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On April 21, 2009, Visa received
an oral notification from the Canadian Competition Bureau that it
has initiated a civil inquiry regarding interchange and certain of
Visa policies relating to merchant acceptance practices. Visa has
not yet received documentation related to the inquiry.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Kabuki Restaurants</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On January 5, 2009, Kabuki
Restaurants, Inc. filed a putative class action lawsuit against
Visa Inc. in California Superior Court. The plaintiff alleges that
Visa’s practice of imposing fines on acquiring banks for
their merchants’ failure to abide by certain Visa rules,
including fines related to the Cardholder Information Security
Program (CISP) and Account Data Compromise Recovery (ADCR) process,
violates California state law, including Business and Professions
Code §§17200 <i>et seq</i>. Before Visa filed a
responsive pleading to the putative class action complaint, Kabuki
voluntarily dismissed the action without prejudice on
February 5, 2009. Five days later, Kabuki filed a new lawsuit
against Visa, alleging the same causes of action as in the first
lawsuit, but only on an individual basis. At this time, Kabuki is
not asserting any claims on behalf of a putative class. On
June 15, 2009, the parties reached an agreement in principle
to settle the litigation. The settlement amount is not considered
material to the Company’s consolidated financial statements.
The settlement was finalized on July 22, 2009 and that same
day, plaintiff filed a notice of dismissal with prejudice with
court.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Loiseau</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On March 17, 2009, Robert Loiseau
filed a putative class action against Visa U.S.A. in California
Superior Court asserting claims for breach of contract, unjust
enrichment and violations of Business and Professions Code
§§17200 <i>et seq</i>. The plaintiff alleges that certain
fees associated with and limitations on the use of Visa gift cards
are unlawful. On June 2, 2009, plaintiff amended the complaint
to add the card issuer as a defendant. Visa U.S.A. filed a demurrer
on June 29, 2009, seeking to have the complaint against Visa
U.S.A. dismissed in its entirety because Visa did not issue the
gift cards at issue, Visa did not set the fees and limitations
about which plaintiff complains, and Visa did not collect any of
the challenged fees.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>The Reserve Primary Fund</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On May 5, 2009, Visa U.S.A.
commenced an action in the United States Court for the Southern
District of New York against The Reserve Primary Fund (the
“Fund”) and related entities in connection with the
Fund’s failure to promptly redeem in full Visa U.S.A.’s
investment in a money market mutual fund. On September 15,
2008, Visa U.S.A. sought to redeem its entire investment of over
$981 million, plus accrued dividends. The Fund failed to return
Visa U.S.A.’s investment within one business day as required
by the Fund’s prospectus. Since that time, the Fund announced
a liquidation plan and has so far made interim distributions
returning approximately 90% of Visa U.S.A.’s investment. Visa
U.S.A. is seeking damages in excess of $98 million, being the
amount of its investment currently held by the Fund. Also see
<i>Note 3—Fair Value Measurements</i> and <i>Note
4—Prepaid Expenses and Other Assets</i>. On May 5, 2009,
the SEC commenced an action in the U.S. District Court for the
Southern District of New York against the Fund and has proposed an
alternative plan of liquidation. On July 28, 2009, Visa U.S.A.
filed a statement regarding the SEC’s plan. A hearing is
scheduled for September 23, 2009.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font><font size="1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b><i>Intellectual Property Litigation</i></b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%">
<font face="ARIAL" size="2"><i>Vale Canjeable</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On March 25, 2009, the First
Commercial Judge of Appeals of Caracas issued a new decision on
Visa International’s appeal of the preliminary relief
(i) dismissing the appeal; (ii) ratifying the preliminary
relief; and (iii) finding Visa and Todoticket liable for legal
fees and costs in connection with the appeal (which fees and costs
will not be due until the case is finally decided on the merits).
On July 9, 2009, Visa International filed a further appeal as to
the March 25 decision on preliminary relief.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%">
<font face="ARIAL" size="2"><i>Starpay and VIMachine</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The parties reached an agreement in
principle to settle the dispute in January 2008. On May 16,
2008, Visa U.S.A. and Visa International filed a Motion to Enforce
the Settlement Agreement against all parties to the agreement,
including the inventor. Briefing on that motion
is complete, with the inventor intervening in
opposition. </font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">VIMachine and the inventor subsequently
filed a Motion to Compel Further Mediation on November 7,
2008. Visa U.S.A. and Visa International opposed the
motion and asked the Court to rule on the pending Motion to
Enforce if the parties’ efforts to resolve their
differences were unsuccessful. On December 17, 2008, Starpay
and VIMachine filed a Motion for Leave to File Under Seal a Motion
for Stay of This Action in Favor of Arbitration. In an Order of
February 13, 2009, in which it denied Plaintiffs’
pending motions for a ruling or, in the alternative, a scheduling
order, the Court indicated that the parties should expect rulings
on the other pending motions in due course.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The parties reached a revised
settlement agreement (the “Revised Settlement”), which
was signed by all parties on June 4, 2009 and June 5,
2009. Visa made payments pursuant to the Revised Settlement on
June 8, 2009. The parties planned to file a dismissal of
the action with the Court on June 9, 2009. However, the Court
issued rulings on the parties’ previously pending motions on
June 8, 2009. The Court granted in part and denied in
part the Motion to Enforce, resulting in a set of settlement terms
that differ somewhat from those found in the Revised
Settlement. Accordingly, on June 22, 2009, Visa and the
inventor, Talati, filed a Joint Motion for Entry of
Dismissal Vacating Orders of June 8, 2009. VIMachine
is unopposed to the motion. On July 1, 2009, Starpay
filed an Opposition to the Joint Motion for Entry of Dismissal
Vacating Orders of June 8, 2009. The settlement amount in the
Revised Settlement is not considered material to the
Company’s consolidated financial statements.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%">
<font face="ARIAL" size="2"><i>Every Penny Counts,
Inc.—Prepaid Cards</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Appellate briefing is complete. Oral
argument before the Federal Circuit was held on April 1, 2009.
On April 30, 2009, the Federal Circuit affirmed the lower
court’s judgment in favor of Visa. On May 11, 2009,
Every Penny Counts filed a petition for panel rehearing of the
panel’s April 30 decision. The Federal Circuit denied
the petition for rehearing on May 26, 2009 and issued its
mandate on June 2, 2009. Judgment was entered pursuant to that
mandate on June 10, 2009.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%">
<font face="ARIAL" size="2"><i>Calabrese Stemer—Transaction
Notification Alerts</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On February 19, 2009, Calabrese
Stemer LLC and Charge Notification Services Corp, Inc. filed suit
against Visa Inc. in the Southern District of Florida for patent
infringement. Plaintiffs allege that Visa offers to perform certain
transaction notification pilot services that would infringe United
States Patent No. 7,357,310 (“Mobile Phone Charge Card
Notification and Authorization Method”). On June 11,
2009, Plaintiff filed a Notice of Voluntary Dismissal Without
Prejudice. On June 16, 2009, the Court issued an Order of
Closeout dismissing the Plaintiffs’ claims without
prejudice.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font><font size="1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%">
<font face="ARIAL" size="2"><i>TQP Development, LLC—Data
Encryption</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On March 25, 2009, TQP
Development, LLC filed a lawsuit against Visa Inc., Visa U.S.A.,
Visa International and a number of other companies, including
American Express, MasterCard and Barclays, in the Eastern District
of Texas alleging that methods practiced on the defendants’
websites infringe United States Patent No. 5,412,730
(“Encrypted Data Transmission System Employing Means for
Randomly Altering the Encryption Keys”). On May 22,
2009, Visa answered the complaint and filed a counterclaim for a
declaratory judgment that Visa is not infringing the patent and/or
that the patent is invalid.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%">
<font face="ARIAL" size="2"><i>Actus, LLC—Prepaid
Cards</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On April 9, 2009, Actus, LLC filed
a lawsuit against Visa Inc. and a number of other companies in the
Eastern District of Texas alleging that certain Visa prepaid
products infringe United States Patent No. 7,328,189
(“Method and Apparatus for Conducting Electronic Commerce
Transactions Using Electronic Tokens”) and United States
Patent No. 7,249,099 (“Method and Apparatus for
Conducting Electronic Commerce Transactions Using Electronic
Tokens”). On June 11, 2009, Visa filed a motion to
dismiss plaintiff’s claims.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%">
<font face="ARIAL" size="2"><i>Joao Bock Transaction
Systems—Transaction Security</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On May 11, 2009, Joao Bock
Transaction Systems of Texas, LLC filed a lawsuit against Visa Inc.
and a number of other companies in the Eastern District of Texas
alleging that certain Visa products and/or services infringe United
States Patent No. 7,096,003 (“Transaction Security
Apparatus”). On June 23, 2009, plaintiff filed a first
amended complaint. On July 10, 2009, Visa filed a motion to
dismiss plaintiff’s claim.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%">
<font face="ARIAL" size="2"><i>Restricted Spending Solutions,
LLC—Prepaid and Commercial Cards</i></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On May 18, 2009, Restricted
Spending Solutions, LLC (“RSS”) filed a lawsuit against
Visa U.S.A. and a number of other companies in the Central District
of Illinois alleging that certain Visa prepaid and commercial cards
infringe United States Patent No. 6,044,360 (“Third
Party Credit Card”). On June 23, 2009, RSS filed a
dismissal without prejudice as to all defendants and, the same day,
re-filed its suit in the Northern District of Illinois. At this
early stage, it is not possible to make any reasonable evaluation
of the claims alleged.</font></p>
</div>
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785000000
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1838000000
1703000000
908000000
0
-133000000
1100000000
0
0
22000000
3137000000
1409000000
2366000000
-908000000
22000000
0
84000000
<div>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
</p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 8—Net Income Per Share</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company calculated net income per
share using the two-class method under the guidelines of SFAS
No. 128, <i>Earnings Per Share</i> (“SFAS
128”)<i>,</i> to reflect the different rights of each class
and series of outstanding common stock. Under the provisions of
SFAS 128, basic net income per share is computed for each
class and series of common stock outstanding during the period by
dividing net income available to each class and series by the
weighted average number of common stock outstanding during the
period.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Diluted net income per share for each
class and series of common stock is computed by dividing net income
available by the weighted average number of common stock and, if
dilutive, potential class A common stock equivalent shares
outstanding during the period. The following tables present basic
and diluted earnings per share for the three and nine months ended
June 30, 2009.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Three months ended June 30, 2009</i></font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="27%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="7"><font face="ARIAL" size="1"><b>Basic Earnings
Per Share</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size="1"><b>Diluted
Earnings Per Share</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="16"><font face="ARIAL" size="1"><b>(in millions,
except per share data)</b></font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"
nowrap="nowrap" align="middle">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="1"><b>Classes of Common<br />
Stock</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size="1"><b>Income<br />
Allocation<br />
($) (A)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Weighted<br />
Average<br />
Shares<br />
Outstanding (B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Earnings per<br />
Share ($) =<br />
(A)/(B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Income<br />
Allocation<br />
($) (A)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Weighted<br />
Average<br />
Shares<br />
Outstanding (B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Earnings per<br />
Share ($) =<br />
(A)/(B)</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class A</font><font face="ARIAL" size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">433</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">448</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.97</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">729</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">756</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.97</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class B</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">149</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(2)</sup></font><font face="ARIAL"
size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">246</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.61</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">149</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(2)</sup></font><font face="ARIAL"
size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">246</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.61</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C</font><font face="ARIAL" size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(3)</sup></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">147</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">152</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.97</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">146</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">152</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.97</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net income</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">729</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
<tr>
<td colspan="18" height="24"></td>
</tr>
<tr>
<td valign="top" colspan="18">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Nine months ended June 30, 2009</i></font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 1px">
 </p>
</td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="7"><font face="ARIAL" size="1"><b>Basic Earnings
Per Share</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size="1"><b>Diluted
Earnings Per Share</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="16"><font face="ARIAL" size="1"><b>(in millions,
except per share data)</b></font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"
nowrap="nowrap" align="middle">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="1"><b>Classes of Common<br />
Stock</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size="1"><b>Income<br />
Allocation<br />
($) (A)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Weighted<br />
Average<br />
Shares<br />
Outstanding (B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Earnings per<br />
Share ($) =<br />
(A)/(B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Income<br />
Allocation<br />
($) (A)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Weighted<br />
Average<br />
Shares<br />
Outstanding (B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Earnings per<br />
Share ($) =<br />
(A)/(B)</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" colspan="9">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b><i>Common Stock Redeemed October 10,
2008</i></b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C (series II) and class C (series
III)</font><font face="ARIAL" size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(3</sup></font><font face="ARIAL"
size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">)</sup></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">4</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">Not presented</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">Not presented</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">4</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">Not presented</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">Not presented</font></td>
</tr>
<tr>
<td colspan="9" height="5"></td>
<td style="BORDER-RIGHT: #000000 1px solid" colspan="2" height="5">
 </td>
<td colspan="3" height="5"></td>
<td colspan="2" height="5"></td>
<td colspan="2" height="5"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" colspan="9">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b><i>Common Stock:</i></b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class A</font><font face="ARIAL" size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,081</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">447</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2.42</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,836</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">761</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2.41</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class B</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">388</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(2)</sup></font><font face="ARIAL"
size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">246</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.58</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">387</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(2)</sup></font><font face="ARIAL"
size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">246</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.58</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C</font><font face="ARIAL" size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(3)</sup></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">366</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">152</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2.42</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">365</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">152</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2.41</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net income</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,839</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style=
"MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="3%"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">The calculation of
class A common stock diluted earnings per share assumes potential
class A common stock equivalent shares outstanding. The computation
of average dilutive shares outstanding excluded stock options to
purchase 1,409,323 and 1,446,229 shares of common stock, 16,014 and
13,964 restricted stock awards and 5,117 and 17,110 restricted
stock units for the three and nine months ended June 30, 2009,
respectively. These amounts were excluded because their effect
would be antidilutive.</font></p>
</td>
</tr>
</tbody>
</table>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="3%"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(2)</sup></font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">Net income is
attributed to each class and series of common stock on an
as-converted basis. On an as-converted basis and for the purpose of
calculating net income allocated to each class and series of common
stock, the weighted average numbers of shares of class B common
stock outstanding are 154,566,658 and 160,585,944 for the three and
nine months ended June 30, 2009, respectively.</font></p>
</td>
</tr>
</tbody>
</table>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="3%"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(3)</sup></font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">Under the guidelines of
SFAS 128, net income was attributed to the redeemed common stock
for the period during which they were outstanding. See <i>Note
7—Stockholders’ Equity.</i></font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT -->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Three months ended June 30, 2008</i></font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="33%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="7"><font face="ARIAL" size="1"><b>Basic Earnings
Per Share</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size="1"><b>Diluted
Earnings Per Share</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="16"><font face="ARIAL" size="1"><b>(in millions,
except per share data)</b></font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"
nowrap="nowrap" align="middle">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="1"><b>Converted Classes<br />
and Series of Common<br />
Stock</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size="1"><b>Income<br />
Allocation<br />
($) (A)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Weighted<br />
Average<br />
Shares<br />
Outstanding (B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Earnings per<br />
Share ($) =<br />
(A)/(B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Income<br />
Allocation<br />
($) (A)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Weighted<br />
Average<br />
Shares<br />
Outstanding (B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Earnings per<br />
Share ($) =<br />
(A)/(B)</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" colspan="9">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b><i>Participating Common Stock Classified as a
Liability:</i></b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C (series III)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">18</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">35</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">Not presented</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">18</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">35</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">Not presented</font></td>
</tr>
<tr>
<td colspan="9" height="5"></td>
<td style="BORDER-RIGHT: #000000 1px solid" colspan="2" height="5">
 </td>
<td colspan="3" height="5"></td>
<td colspan="2" height="5"></td>
<td colspan="2" height="5"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" colspan="9">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b><i>Common Stock Classified as Temporary
Equity:</i></b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C(series II)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">9</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">80</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.12</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">9</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">80</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.12</font></td>
</tr>
<tr>
<td colspan="9" height="5"></td>
<td style="BORDER-RIGHT: #000000 1px solid" colspan="2" height="5">
 </td>
<td colspan="3" height="5"></td>
<td colspan="2" height="5"></td>
<td colspan="2" height="5"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" colspan="9">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b><i>Common Stock Classified as Stockholders’
Equity:</i></b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class A</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">227</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">447</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.51</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">395</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">776</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.51</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class B</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">90</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font><font face="ARIAL"
size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">246</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.36</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">89</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font><font face="ARIAL"
size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">246</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.36</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C (series I)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">64</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">125</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.51</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">63</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">125</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.51</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C (series III & IV)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">14</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">27</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.51</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">14</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">27</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.51</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net income</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">422</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
<tr>
<td colspan="18" height="24"></td>
</tr>
<tr>
<td valign="top" colspan="18">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><i>Nine months ended June 30, 2008</i></font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 1px">
 </p>
</td>
</tr>
<tr>
<td height="16"></td>
<td colspan="8" height="16"></td>
<td colspan="2" height="16"></td>
<td colspan="7" height="16"></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="7"><font face="ARIAL" size="1"><b>Basic Earnings
Per Share</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size="1"><b>Diluted
Earnings Per Share</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="16"><font face="ARIAL" size="1"><b>(in millions,
except per share data)</b></font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"
nowrap="nowrap" align="middle">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="1"><b>Converted Classes<br />
and Series of Common<br />
Stock</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size="1"><b>Income<br />
Allocation<br />
($) (A)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Weighted<br />
Average<br />
Shares<br />
Outstanding (B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Earnings per<br />
Share ($) =<br />
(A)/(B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Income<br />
Allocation<br />
($) (A)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Weighted<br />
Average<br />
Shares<br />
Outstanding (B)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle"><font face="ARIAL" size="1"><b>Earnings per<br />
Share ($) =<br />
(A)/(B)</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" colspan="9">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b><i>Participating Common Stock Classified as a
Liability:</i></b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C (series III)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">19</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">13</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">Not presented</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">19</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">13</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">Not presented</font></td>
</tr>
<tr>
<td colspan="9" height="5"></td>
<td style="BORDER-RIGHT: #000000 1px solid" colspan="2" height="5">
 </td>
<td colspan="3" height="5"></td>
<td colspan="2" height="5"></td>
<td colspan="2" height="5"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" colspan="9">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b><i>Common Stock Classified as Temporary
Equity:</i></b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C (series II)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">36</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">48</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.75</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">36</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">48</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.75</font></td>
</tr>
<tr>
<td colspan="9" height="5"></td>
<td style="BORDER-RIGHT: #000000 1px solid" colspan="2" height="5">
 </td>
<td colspan="3" height="5"></td>
<td colspan="2" height="5"></td>
<td colspan="2" height="5"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" colspan="9">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b><i>Common Stock Classified as Stockholders’
Equity:</i></b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class A</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">244</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">170</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.44</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,105</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">767</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.44</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class B</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">483</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font><font face="ARIAL"
size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">363</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.33</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">482</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font><font face="ARIAL"
size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">363</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.33</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C (series I)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">307</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">213</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.44</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">307</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">213</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.44</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Class C (series III & IV)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">71</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">49</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.44</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">71</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">49</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1.44</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net income</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,160</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td style="BORDER-RIGHT: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style=
"MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="3%"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">Net income is
attributed to each class and series of common stock on an
as-converted basis. For the period subsequent to the IPO, net
income attributed to class B common stock reflects its conversion
rate during that period of 0.71 shares of class A common stock for
each share of class B common stock. On an as-converted basis and
for the purpose of calculating net income allocated, the weighted
average number of shares of class B common stock outstanding for
the three and nine months ended June 30, 2008 are 175,367,482
and 334,551,367, respectively.</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
</div>
2000000
6000000
1000000
884000000
1000000
1000000
25000000
-52000000
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 2—Retrospective Responsibility
Plan</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Company has several mechanisms,
including a series of agreements designed to address potential
liability under certain litigation referred to as the
“covered litigation.” These mechanisms are included in
and referred to as the Retrospective Responsibility Plan (the
“Plan”). In accordance with the Plan, the Company
established a litigation escrow account (the “Escrow
Account”) from which settlements of, or judgments in, the
covered litigation will be paid. Under the terms of the Plan, when
the Company funds the Escrow Account, its U.S. financial
institutions, the sole holders of class B common stock, bear
the cost via a reduction in their class A as-converted common
stock.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On December 16, 2008, upon the
recommendation of the Company’s board of directors, the
Company’s stockholders approved and adopted an amendment and
restatement of the Company’s Fourth Amended and Restated
Certificate of Incorporation to permit the Company greater
flexibility in funding the Escrow Account and made other clarifying
modifications. As a result, the Company filed a Fifth Amended and
Restated Certificate of Incorporation with the Secretary of State
of Delaware on December 16, 2008.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On December 19, 2008, the Company
deposited $1.1 billion into the Escrow Account. The funding reduced
the conversion rate applicable to the Company’s class B
common stock outstanding from 0.7143 class A share to
0.6296 class A share. The funding of the Escrow Account
had the effect of a</font> <!--##PBStart##-->
<!-- 28 Begin_Flowing_Text * DO NOT REMOVE OR EDIT --><font face=
"ARIAL" size="2">repurchase of 20,800,824 class A common stock
equivalents from the Company’s class B shareholders. The
repurchase amount per share of $52.88 was calculated under the
terms of the Fifth Amended and Restated Certificate of
Incorporation, using the volume weighted average price of the
Company’s class A common shares for the 15-day pricing
period from December 1, 2008 to December 19,
2008.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">On June 30, 2009, the
Company’s Board of Directors approved an additional $700
million deposit into the Escrow Account, which was funded on
July 16, 2009, further reducing the conversion rate applicable
to the Company’s class B common stock outstanding from
0.6296 class A share to 0.5824 class A share. The
additional funding had the effect of a repurchase of 11,578,878
class A common stock equivalents from the Company’s class B
shareholders. The repurchase amount per share of $60.45 was
calculated under the terms of the Fifth Amended and Restated
Certificate of Incorporation, using the volume weighted average
price of the Company’s class A common shares for the 11-day
pricing period from June 30, 2009 to July 15,
2009.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The following table sets forth the
changes in the Escrow Account during the nine months ended
June 30, 2009. It therefore does not reflect the additional
$700 million funding on July 16, 2009:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="92%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="86%"></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>(in millions)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Balance at October 1, 2008</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,928</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Additional funding under the Plan</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,100</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">American Express settlement payments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(210</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Discover settlement payments</font><font face="ARIAL"
size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(1,271</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Interest earned, less applicable taxes</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">14</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Balance at June 30, 2009</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,561</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Less: Current portion of escrow account</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(1,141</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Long-term portion of escrow account</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>420</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style=
"MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="3%"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">(1)</sup></font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">The Company made
payments totaling $1.416 billion related to the <i>Discover</i>
settlement during the nine months ended June 30, 2009. Of the
$1.416 billion payment, $1.271 billion was funded through the
Escrow Account under the Plan and $145 million, $65 million of
which is reimbursed by Morgan Stanley evenly over the four fiscal
2009 quarters, was funded from the Company’s operating cash.
See <i>Note 4—Prepaid Expenses and Other
Assets</i>.</font></p>
</td>
</tr>
</tbody>
</table>
</div>
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 4—Prepaid Expenses and Other
Assets</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Prepaid expenses and other current
assets consisted of the following:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="92%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="74%"></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>June 30,<br />
2009</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>September 30,<br />
2008</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="middle" colspan="5"><font face="ARIAL"
size="1"><b>(in millions)</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Non-trade receivable</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,024</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">15</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Prepaid expenses and maintenance</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>100</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">91</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Money market investment—Reserve Primary
Fund</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>70</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">953</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Income tax receivable</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>—  </b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">90</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>40</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">41</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,234</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,190</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Other non-current assets consisted of
the following:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="92%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="73%"></td>
<td valign="bottom" width="11%"></td>
<td></td>
<td></td>
<td valign="bottom" width="11%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>June 30,<br />
2009</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="2"><font face="ARIAL" size=
"1"><b>September 30,<br />
2008</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="middle" colspan="5"><font face="ARIAL"
size="1"><b>(in millions)</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other investments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>50</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">592</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Long-term prepaid expenses</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>13</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">29</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>14</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">13</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
 </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>77</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">634</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td valign="bottom">  </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
<td style="BORDER-TOP: #000000 3px double" valign="bottom">
 </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The non-trade receivable balance at
June 30, 2009 includes approximately $1.0 billion related to
the sale of the Company’s investment in VisaNet do Brasil on
June 29, 2009. The Company received the proceeds from the sale
on July 2, 2009, satisfying this non-trade receivable. Prior
to the sale, the Company accounted for the investment under the
cost method with a book value of approximately $535 million,
reflected in other non-current assets on its balance sheet. The
Company recognized a pre-tax gain of $473 million in investment
income, net on its statement of operations as a result of the sale.
The amount of the gain net of tax was $237 million.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The non-trade receivable balance at
June 30, 2009 also includes a $16 million receivable from
Morgan Stanley as part of the <i>Discover</i> settlement agreement.
The Company initially recorded a $65 million receivable from Morgan
Stanley during the first quarter of 2009, and has received three
out of four equal quarterly payments. See
<i>Note 12—Legal Matters.</i></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!--##PBStart##-->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">The Reserve Primary Fund balance at
September 30, 2008 reflects a $30 million other-than-temporary
impairment. During the first three quarters of fiscal 2009, the
Company received distributions totaling $884 million. In February
2009, the Fund announced that $3.5 billion of the Fund assets would
be set aside in a special reserve which will be used to satisfy
pending or threatened claims against the Fund, its officers and
Trustees and anticipated costs and expenses for the Fund, including
legal and accounting fees. In May 2009, the SEC filed an action in
the U.S. District Court for the Southern District of New York (the
“Action”) asserting various allegations against the
management of the Fund and requesting that the Fund distribute
assets on a pro-rata basis. In June 2009, the Fund announced that
the Court had issued an order (the “Order”) concerning
the distribution of the Fund’s remaining assets. The Action
proposes a plan to distribute the remaining assets of the Fund on a
<i>pro rata</i> basis to shareholders whose shares have not been
fully redeemed since September 15, 2008. The Order states that
if all remaining Fund assets were distributed on a pro rata basis
to all unpaid shareholders, investors would recover approximately
98.4 cents per share. Applying this value to Visa’s
unredeemed shares at June 30, 2009 would result in an
additional distribution of approximately $82 million. On
July 28, 2009, Visa U.S.A. filed a statement regarding the
SEC’s plan.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">
<font face="ARIAL" size="2">Based on recent developments, the
Company believes it is likely that the Fund will liquidate and
distribute the remaining assets within a twelve month period, and
has therefore classified the Reserve Primary Fund balance as a
current asset at June 30, 2009. See <i>Note 3—Fair Value
Measurements</i> and <i>Note 12—Legal
Matters.</i></font></p>
</div>
-5000000
-10000000
2.42
2.41
761000000
447000000
1.58
1.58
246000000
246000000
2.42
2.41
152000000
152000000
1000000
-32000000
6000000
20000000
22000000
84000000
6000000
-39000000
240000000
0.105
1839000000
2000000
1000000
34000000
28000000
-28000000
0001403161
v:ClassCSeriesIIIAndSeriesIVCommonStockMember
2008-10-01
2009-06-30
0001403161
v:ClassCCommonStockMember
2008-10-01
2009-06-30
0001403161
us-gaap:TreasuryStockMember
2008-10-01
2009-06-30
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