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Visa Europe Estimated Purchase Consideration (Details)
$ in Millions, € in Billions
3 Months Ended 9 Months Ended
Jun. 21, 2016
EUR (€)
Jun. 21, 2016
USD ($)
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Jul. 21, 2016
Jun. 21, 2016
USD ($)
Sep. 30, 2015
USD ($)
Business Acquisition [Line Items]                  
Cash payment         $ 9,082 $ 93      
Less: Visa Europe Framework Agreement loss     $ (1,877) [1] $ 0 (1,877) [1] 0      
Consideration, preferred stock of the Company         5,717 $ 0      
Right to recover for covered losses     25 [2],[3]   25 [2],[3]       $ 0
Additional cash consideration payable on the third anniversary of closing     1,209   1,209       $ 0
Visa Europe                  
Business Acquisition [Line Items]                  
Cash payment € 12.2 $ 13,882              
Fair value of preferred stock [4]               $ 5,692  
Total upfront consideration   19,574              
Fair value of deferred cash consideration [5]     1,236   1,236        
Total consideration before adjustments   20,810              
Less: Visa Europe Framework Agreement loss [6]         $ (1,856)        
Total accounting purchase consideration   18,784              
Consideration, preferred stock of the Company € 5.3 $ 6,100              
Preferred Stock, Discount for Illiquidity, Percent 6.00%             6.00%  
Right to recover for covered losses               $ 0  
Additional cash consideration payable on the third anniversary of closing | € € 1.0                
Compound annual interest rate on additional consideration paid on third anniversary of closing (percent) 4.00%             4.00%  
Subsequent Event | Visa Europe                  
Business Acquisition [Line Items]                  
Discount rate on fair value of deferred cash consideration (percent)             1.20%    
Operating Expense | Visa Europe                  
Business Acquisition [Line Items]                  
Less: Visa Europe Framework Agreement loss     $ (1,900)            
Class C common stock                  
Business Acquisition [Line Items]                  
Less: treasury stock [7]               $ (170)  
[1] The Company did not include Visa Europe's financial results in the Company's unaudited consolidated statements of operations from the acquisition date, June 21, 2016, through June 30, 2016 as the impact is immaterial. See Note 2—Visa Europe to these unaudited consolidated financial statements.
[2] Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
[3] The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the U.K.&I and Europe preferred stock outstanding, respectively, as of June 30, 2016; (b) the 13.952 class A common stock conversion rate applicable to both the U.K.&I and Europe preferred stock as of June 30, 2016; and (c) $74.17, Visa's class A common stock closing stock price as of June 30, 2016. Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.
[4] he fair value of preferred stock was determined based on its as-converted value of $6.1 billion on June 21, 2016, less a 6% discount for illiquidity as these shares are subject to limitations on transferability. The fair value was also adjusted to reflect $25 million of "right to recover for covered losses" related to VE territory covered losses prior to the Closing. See Note 13—Legal Matters.
[5] the fair value of deferred cash consideration of €1.0 billion, plus 4% compound annual interest, payable on the third anniversary of the Closing, discounted at a rate of 1.2%.
[6] the loss upon consummation of the transaction resulting from the effective settlement of the Framework Agreement between Visa and Visa Europe. The Visa Europe Framework Agreement provided Visa Europe with a perpetual, exclusive right to operate the Visa business in the European Union in exchange for a license fee paid to Visa. Under the terms of the Framework Agreement, the license fee paid by Visa Europe has increased modestly since inception in 2007, while the value of the Visa Europe business has increased at a greater rate. Using an income approach, the Company assessed the contractual terms and conditions of the Framework Agreement as compared to current market conditions and the historical and expected financial performance of Visa Europe. Based on the analysis performed, the Company determined that the terms were not at fair value as determined under U.S. GAAP at the Closing. The present value of the expected differential between payments required by the Framework Agreement and those that would be required if the contract were at fair value under U.S. GAAP was calculated over the Framework Agreement's contractual perpetual term, resulting in a loss of $1.9 billion recognized within operating expense in the Company's unaudited consolidated statement of operations during the third quarter of fiscal 2016, and a reduction to the purchase accounting consideration; and
[7] the fair value of the Visa class C common stock held by Visa Europe as of the Closing.