EX-12.1 4 d330153dex121.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES. Statement of computation of ratio of earnings to fixed charges.

Exhibit 12.1

VISA INC.

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES

 

(in millions, except for ratios)    Nine
Months
Ended
June 30,		      Year Ended September 30,  
     2012      2011      2010      2009     2008     2007 (1)  

Earnings:

      619         5,656         4,638         4,000        1,335        (1,387 ) 

Income before income taxes including non-controlling interest

                

Fixed charges

      28         32         72         120        152        85   

Other adjustments

      3         4         8         (4 )      (8 )      (41 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total earnings (a)

      650         5,692         4,718         4,116        1,479        (1,343 ) 

Fixed charges:

                

Interest expense

      28         32         72         115        143        81   

Interest capitalized and estimate of interest in rental expense

      —         —         —         5        9        4   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total fixed charges (b)

      28         32         72         120        152        85   

Ratio of earnings to fixed charges (a/b)(2)

      23.3         175.5         65.5         34.3        9.8        (15.8 ) 

 

(1)

Historical balances prior to October 1, 2007, represent balances for Visa U.S.A. Inc., the accounting acquirer in the Visa Inc. business combination.

In computing the ratio of earnings to fixed charges, “earnings” consist of income before income taxes including non-controlling interest, fixed charges and other adjustments.

For purposes of computing “earnings,” other adjustments include subtracting the equity in earnings of unconsolidated affiliates, interest capitalized and the non-controlling interest of subsidiaries that have not incurred fixed charges.

“Fixed charges” include interest expense, which primarily consists of accretion on litigation matters, interest expense related to uncertain tax positions and interest expense on outstanding debt. We began to recognize interest expense related to uncertain tax positions in connection with the adoption of FASB Interpretation No. 48 on October 1, 2007. Interest expense related to uncertain tax positions for the years ended September 30, 2008, 2009, 2010 and 2011, and the nine months ended June 30, 2012, was $2 million, $17 million, $37 million, $7 million, and $15 million, respectively. Fixed charges also include interest capitalized and an estimate of the interest component of rental expense.

 

(2)

Ratio is computed based on whole numbers, not rounded numbers.