EX-99.1 2 d89014dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

 

LOGO

 

 

Visa Inc. Reports Strong Fiscal Fourth Quarter Adjusted Earnings Per Share Growth of 14% and Full-Year 2015 Adjusted Earnings Per Share Growth of 16% and Announces a New $5.0 Billion Share Repurchase Program

 

 

 

  GAAP quarterly net income of $1.5 billion or $0.62 per diluted class A common share, an increase of 41% and 44% over the prior year, respectively, or an increase of 12% and 14% over the prior year’s adjusted results, respectively

 

  GAAP full-year 2015 net income of $6.3 billion or $2.58 per diluted class A common share, an increase of 16% and 20% over the prior year, respectively

 

  Adjusted full-year 2015 net income of $6.4 billion or $2.62 per diluted class A common share, an increase of 13% and 16% over the prior year’s adjusted results, respectively

 

  The Company authorized a new $5.0 billion repurchase program, in addition to the previously announced 17% quarterly per share dividend increase

Foster City, CA, November 2, 2015 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal fourth quarter and full-year 2015. GAAP net income in the fiscal fourth quarter of 2015 was $1.5 billion or $0.62 per share, an increase of 41% and 44% over the prior year, respectively. GAAP net income for the full-year 2015 was $6.3 billion or $2.58 per share, an increase of 16% and 20% over the prior year, respectively. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Net income in the fiscal fourth quarter was $1.5 billion or $0.62 per share, an increase of 12% and 14% over the prior year adjusted results, respectively. Adjusted net income for the full-year 2015 was $6.4 billion or $2.62 per share, an increase of 13% and 16% over the prior year’s adjusted results, respectively. The Company’s full-year 2015 adjusted financial results excluded a non-cash, non-operating expense recorded upon the revaluation of the Visa Europe put option of $110 million. The Company’s 2015 results included a one-time tax benefit of $239 million resulting from the successful resolution of uncertain tax positions with taxing authorities during the fiscal third quarter that related to prior years. Prior year adjusted results excluded the impact of a special item related to amounts covered by the retrospective responsibility plan and related tax benefit during the fiscal fourth quarter. Prior year results also included a one-time tax benefit of $191 million related to a deduction for prior years’ U.S. domestic production activities during the fiscal second quarter.

 

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Net operating revenue in the fiscal fourth quarter of 2015 was $3.6 billion, an increase of 11% nominally or 13% on a constant dollar basis over the prior year. The strengthening of the U.S. dollar versus the prior year quarter negatively impacted net operating revenue growth by approximately 3 percentage points.

Net operating revenue for the fiscal full-year 2015 was $13.9 billion, an increase of 9% nominally or 12% on a constant dollar basis over the prior year, driven by solid revenue growth contributions from service, data processing and international transaction revenues. The strengthening of the U.S. dollar versus the prior year negatively impacted net operating revenue growth by approximately 2.5 percentage points.

Adjusted quarterly and full-year operating expenses and net income per class A common share outstanding are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.

“Visa’s fiscal fourth quarter was a strong finish to an equally strong fiscal full-year 2015 in terms of revenue and earnings per share growth in the face of a continued challenging global economic environment. The underlying growth of our franchise continued as evidenced by our strong payments volumes as well as new and renewed partnerships during the year. Most importantly, we continued to build our capabilities at the physical point-of-sale as well as in the digital space,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “Although fiscal 2016 reported growth rates will be negatively impacted by a strong US dollar and an uneven global economy, we are well positioned for strong success in 2017 and well beyond.”

Fiscal Fourth Quarter 2015 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2015, on which fiscal fourth quarter service revenue is recognized, was 11% over the prior year at $1.3 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2015, was 12% over the prior year at $1.3 trillion.

Cross-border volume growth, on a constant dollar basis, was 5% for the three months ended September 30, 2015.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2015, were 18.4 billion, an 8% increase over the prior year.

 

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Fiscal fourth quarter 2015 service revenues were $1.6 billion, an increase of 9% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 6% over the prior year to $1.4 billion. International transaction revenues grew 16% over the prior year to $1.1 billion. Other revenues were $216 million, a 3% increase over the prior year. Client incentives, which are a contra revenue item, were $802 million and represent 18.4% of gross revenues.

Total operating expenses were $1.3 billion for fiscal fourth quarter 2015, a 5% increase over the prior year’s adjusted results, primarily related to an increase in personnel, professional, and marketing expenses, additional depreciation from our ongoing investments in technology assets, offset by lower general and administrative expenses.

GAAP effective tax rate was 33.8% for the quarter ended September 30, 2015.

The weighted-average number of diluted class A common shares outstanding in the fiscal fourth quarter was 2.4 billion.

Cash, cash equivalents, and available-for-sale investment securities were $9.3 billion at September 30, 2015.

Fiscal Full-Year 2015 Financial Highlights:

For the fiscal full-year 2015, service revenues were $6.3 billion, an increase of 9% over the prior year. Data processing revenues rose 7% over the prior year to $5.6 billion. International transaction revenues, which are driven by cross-border volume, grew 14% over the prior year to $4.1 billion. Other revenues were $823 million, a 7% increase over the prior year. Client incentives, which are a contra revenue item, were $2.9 billion and represent 17.1% of gross revenues.

Total processed transactions, which represent transactions processed by VisaNet for the twelve months ended September 30, 2015, totaled 71.0 billion, a 9% increase over the prior year.

Total operating expenses were $4.8 billion for the twelve months ended September 30, 2015, a 6% increase over last year’s adjusted results, primarily related to continued investments in personnel, infrastructure and technology, offset by a reduction in marketing and network and processing fees.

 

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GAAP effective tax rate was 29.6% for the twelve months ended September 30, 2015.

The weighted-average number of diluted class A common shares outstanding for the full year was 2.5 billion.

Notable Events:

During the three months ended September 30, 2015, the Company did not repurchase shares of class A common stock. During the twelve months ended September 30, 2015, class A common stock was reduced by 44.1 million shares, at an average price of $65.98 per share, using $2.9 billion of cash on hand. At September 30, 2015, the Company had $2.8 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

As announced on October 21, 2015, the board of directors declared a quarterly dividend in the aggregate amount of $0.14 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on December 1, 2015, to all holders of record of the Company’s class A, class B and class C common stock as of November 13, 2015.

The board of directors has authorized a new $5.0 billion class A common stock share repurchase program. The shares may be repurchased from time to time as market conditions warrant, and authorization for the program is subject to further change at the discretion of the board.

Financial Outlook:

Visa Inc. provides its financial outlook for the following metrics for fiscal full-year 2016:

 

    Annual net revenue growth: High single-digit to low double-digit range on a constant dollar basis, with an expectation of about three percentage points of negative foreign currency impact;

 

    Client incentives as a percent of gross revenues: 17.5% to 18.5% range;

 

    Annual operating margin: Mid 60s;

 

    Tax rate: Low 30s;

 

    Annual adjusted diluted class A common stock earnings per share growth: Low-end of the mid-teens range on a constant dollar basis, with an expectation of about four percentage points of negative foreign currency impact; and

 

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    Annual free cash flow: About $7 billion.

The financial outlook for fiscal full-year 2016 does not include any impact from the Visa Europe transaction.

Fiscal Fourth Quarter 2015 Earnings Results Conference Call Details:

Visa’s executive management team will host a live audio webcast beginning at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time) today to discuss the financial results and business highlights for the quarter, as well as the Visa Europe transaction. The dial-in information for the call is 888-790-4410 (within the United States) or 773-756-0127 (international). The conference passcode is 7974435. A replay of the call will be available until December 1 and can be accessed by dialing 800-925-1967. The live call and replay, along with supporting materials, can also be accessed through the Investor Relations section of Visa’s website at www.investor.visa.com. A replay of the webcast will be available on Visa’s Investor Relations website for 30 days.

About Visa

Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

This Press Release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as “estimates,” “expectation,” “outlook”, “may,” “projects,” “could,” “should,” “will,” “will continue” and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make about our revenue, client incentives, operating margin, tax rate, earnings per share, free cash flow, and the growth of those items.

 

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By their nature, forward-looking statements: (i) speak only as of the date they are made; (ii) are not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from our forward-looking statements due to a variety of factors, including the following:

 

  the impact of laws, regulations and marketplace barriers, including:

 

    increased regulation of fees, transaction routing, payment card practices or other aspects of the payments industry in the United States, including new or revised regulations issued under the Dodd-Frank Wall Street Reform and Consumer Protection Act;

 

    increased regulation in jurisdictions outside of the United States;

 

    increased government support of national payment networks outside the United States; and

 

    increased regulation of consumer privacy, data use and security;

 

  developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax;

 

  new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings;

 

  economic factors, such as:

 

    economic fragility in the Eurozone, the United States and in other advanced and emerging markets;

 

    general economic, political and social conditions in mature and emerging markets globally;

 

    general stock market fluctuations which may impact consumer spending;

 

    material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates; and

 

    material changes in our financial institution clients’ performance compared to our estimates;

 

  industry developments, such as competitive pressure, rapid technological developments and disintermediation from our payments network;

 

  system developments, such as:

 

    disruption of our transaction processing systems or the inability to process transactions efficiently;

 

    account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and

 

    failure to maintain systems interoperability with Visa Europe;

 

  any prospective transaction with Visa Europe may not be agreed to or implemented;

 

  costs arising if we become obligated to purchase all of Visa Europe’s outstanding capital stock;

 

  the loss of organizational effectiveness or key employees;

 

  the failure to integrate acquisitions successfully or to effectively develop new products and businesses;

 

  natural disasters, terrorist attacks, military or political conflicts, and public health emergencies; and

 

  various other factors, including those more fully described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2014, and our subsequent reports on Forms 10-Q and 8-K.

You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.

Contacts:

Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 650-432-7644, ir@visa.com

Media Relations: Connie Kim, 212-521-3962, globalmedia@visa.com

 

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VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

     September 30,
2015
    September 30,
2014
 
     (in millions, except par value data)  

Assets

    

Cash and cash equivalents

   $ 3,518      $ 1,971   

Restricted cash—litigation escrow

     1,072        1,498   

Investment securities:

    

Trading

     66        69   

Available-for-sale

     2,431        1,910   

Settlement receivable

     408        786   

Accounts receivable

     847        822   

Customer collateral

     1,023        961   

Current portion of client incentives

     303        210   

Deferred tax assets

     871        1,028   

Prepaid expenses and other current assets

     353        307   
  

 

 

   

 

 

 

Total current assets

     10,892        9,562   

Investment securities, available-for-sale

     3,384        3,015   

Client incentives

     110        81   

Property, equipment and technology, net

     1,888        1,892   

Other assets

     776        855   

Intangible assets, net

     11,361        11,411   

Goodwill

     11,825        11,753   
  

 

 

   

 

 

 

Total assets

   $ 40,236      $ 38,569   
  

 

 

   

 

 

 

Liabilities

    

Accounts payable

   $ 127      $ 147   

Settlement payable

     780        1,332   

Customer collateral

     1,023        961   

Accrued compensation and benefits

     503        450   

Client incentives

     1,049        1,036   

Accrued liabilities

     868        624   

Accrued litigation

     1,024        1,456   
  

 

 

   

 

 

 

Total current liabilities

     5,374        6,006   

Deferred tax liabilities

     4,123        4,145   

Other liabilities

     897        1,005   
  

 

 

   

 

 

 

Total liabilities

     10,394        11,156   
  

 

 

   

 

 

 

Equity

    

Preferred stock, $0.0001 par value, 25 shares authorized and none issued

     —          —     

Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,950 and 1,978 shares issued and outstanding at September 30, 2015 and 2014, respectively

     —          —     

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at September 30, 2015 and 2014

     —          —     

Class C common stock, $0.0001 par value, 1,097 shares authorized, 20 and 22 shares issued and outstanding at September 30, 2015 and 2014, respectively

     —          —     

Additional paid-in capital

     18,073        18,299   

Accumulated income

     11,843        9,131   

Accumulated other comprehensive loss, net:

    

Investment securities, available-for-sale

     5        31   

Defined benefit pension and other postretirement plans

     (161     (84

Derivative instruments classified as cash flow hedges

     83        38   

Foreign currency translation adjustments

     (1     (2
  

 

 

   

 

 

 

Total accumulated other comprehensive loss, net

     (74     (17
  

 

 

   

 

 

 

Total equity

     29,842        27,413   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 40,236      $ 38,569   
  

 

 

   

 

 

 


VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

     Three Months Ended
September 30,
    Twelve Months Ended
September 30,
 
     2015     2014     2015     2014  
     (in millions, except per share data)  

Operating Revenues

        

Service revenues

   $ 1,637      $ 1,499      $ 6,302      $ 5,797   

Data processing revenues

     1,429        1,348        5,552        5,167   

International transaction revenues

     1,091        938        4,064        3,560   

Other revenues

     216        212        823        770   

Client incentives

     (802     (768     (2,861     (2,592
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

     3,571        3,229        13,880        12,702   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses

        

Personnel

     521        496        2,079        1,875   

Marketing

     253        241        872        900   

Network and processing

     134        128        474        507   

Professional fees

     107        94        336        328   

Depreciation and amortization

     119        112        494        435   

General and administrative

     143        153        547        507   

Litigation provision

     11        453        14        453   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     1,288        1,677        4,816        5,005   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     2,283        1,552        9,064        7,697   

Non-operating (expense) income

     —          (2     (69     27   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     2,283        1,550        8,995        7,724   

Income tax provision

     771        477        2,667        2,286   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 1,512      $ 1,073      $ 6,328      $ 5,438   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

        

Class A common stock

   $ 0.62      $ 0.43      $ 2.58      $ 2.16   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B common stock

   $ 1.02      $ 0.73      $ 4.26      $ 3.63   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C common stock

   $ 2.48      $ 1.73      $ 10.33      $ 8.65   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic weighted-average shares outstanding

        

Class A common stock

     1,948        1,969        1,954        1,993   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B common stock

     245        245        245        245   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C common stock

     19        24        22        26   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

        

Class A common stock

   $ 0.62      $ 0.43      $ 2.58      $ 2.16   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B common stock

   $ 1.02      $ 0.72      $ 4.25      $ 3.62   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C common stock

   $ 2.48      $ 1.72      $ 10.30      $ 8.62   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted-average shares outstanding

        

Class A common stock

     2,440        2,493        2,457        2,523   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B common stock

     245        245        245        245   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C common stock

     19        24        22        26   
  

 

 

   

 

 

   

 

 

   

 

 

 


VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

     For the Years Ended September 30,  
     2015     2014     2013  
     (in millions)  

Operating Activities

      

Net income

   $ 6,328      $ 5,438      $ 4,980   

Adjustments to reconcile net income to net cash provided by operating activities:

      

Amortization of client incentives

     2,861        2,592        2,321   

Fair value adjustment for the Visa Europe put option

     110        —          —     

Share-based compensation

     187        172        179   

Excess tax benefit for share-based compensation

     (84     (90     (74

Depreciation and amortization of property, equipment, technology and intangible assets

     494        435        397   

Deferred income taxes

     195        (580     1,527   

Litigation provision

     14        453        3   

Other

     24        37        50   

Change in operating assets and liabilities:

      

Settlement receivable

     378        13        (345

Accounts receivable

     (19     (53     (38

Client incentives

     (2,970     (2,395     (2,336

Other assets

     (41     (379     (506

Accounts payable

     (13     (56     40   

Settlement payable

     (552     107        506   

Accrued and other liabilities

     118        513        702   

Accrued litigation

     (446     998        (4,384
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     6,584        7,205        3,022   
  

 

 

   

 

 

   

 

 

 

Investing Activities

      

Purchases of property, equipment, technology and intangible assets

     (414     (553     (471

Proceeds from sales of property, equipment and technology

     10        —          —     

Investment securities, available-for-sale:

      

Purchases

     (2,850     (2,572     (3,164

Proceeds from maturities and sales

     1,925        2,342        2,440   

Acquisitions, net of cash received

     (93     (149     —     

Purchases of / contributions to other investments

     (25     (9     (3

Proceeds / distributions from other investments

     12        —          34   
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (1,435     (941     (1,164
  

 

 

   

 

 

   

 

 

 

Financing Activities

      

Repurchase of class A common stock

     (2,910     (4,118     (5,365

Dividends paid

     (1,177     (1,006     (864

Deposits into litigation escrow account—retrospective responsibility plan

     —          (450     —     

Payments from (return to) litigation escrow account—retrospective responsibility plan

     426        (999     4,383   

Cash proceeds from issuance of common stock under employee equity plans

     82        91        108   

Restricted stock and performance-based shares settled in cash for taxes

     (108     (86     (64

Excess tax benefit for share-based compensation

     84        90        74   

Payments for earn-out related to PlaySpan acquisition

     —          —          (12

Principal payments on capital lease obligations

     —          —          (6
  

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (3,603     (6,478     (1,746
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     1        (1     —     
  

 

 

   

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     1,547        (215     112   

Cash and cash equivalents at beginning of year

     1,971        2,186        2,074   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

   $ 3,518      $ 1,971      $ 2,186   
  

 

 

   

 

 

   

 

 

 

Supplemental Disclosure

      

Income taxes paid, net of refunds

   $ 2,486      $ 2,656      $ 595   

Accruals related to purchases of property, equipment, technology and intangible assets

   $ 81      $ 62      $ 46   


VISA INC.

FISCAL 2015 AND 2014 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

     Fiscal 2015 Quarter Ended     Fiscal 2014
Quarter Ended
 
     September 30,
2015
         June 30,     
2015
        March 31,    
2015
    December 31,
2014
    September 30,
2014
 
     (in millions)  

Operating Revenues

          

Service revenues

   $ 1,637      $ 1,550      $ 1,577      $ 1,538      $ 1,499   

Data processing revenues

     1,429        1,400        1,340        1,383        1,348   

International transaction revenues

     1,091        1,039        964        970        938   

Other revenues

     216        199        204        204        212   

Client incentives

     (802     (670     (676     (713     (768
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

     3,571        3,518        3,409        3,382        3,229   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses

          

Personnel

     521        566        483        509        496   

Marketing

     253        224        190        205        241   

Network and processing

     134        117        109        114        128   

Professional fees

     107        82        77        70        94   

Depreciation and amortization

     119        130        125        120        112   

General and administrative

     143        137        141        126        153   

Litigation provision

     11        —          3        —          453   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     1,288        1,256        1,128        1,144        1,677   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     2,283        2,262        2,281        2,238        1,552   

Non-operating (expense) income

     —          (94     1        24        (2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     2,283        2,168        2,282        2,262        1,550   

Income tax provision

     771        471        732        693        477   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 1,512      $ 1,697      $ 1,550      $ 1,569      $ 1,073   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


VISA INC.

RECONCILIATION OF NON-GAAP FINANCIAL RESULTS

(UNAUDITED)

Our financial results for fiscal 2015 and 2014 reflect the impact of significant items that we believe are not indicative of our operating performance in the prior or future years, as they either have no cash impact or are related to amounts covered by the retrospective responsibility plan. As such, we believe the presentation of adjusted financial results excluding the following amounts provides a clearer understanding of our operating performance for the periods presented.

 

    Revaluation of Visa Europe put option. During the third quarter of fiscal 2015, we recorded an increase of $110 million in the fair value of the Visa Europe put option, resulting in the recognition of non-cash, non-operating expense in our financial results. This amount is not subject to income tax and therefore has no impact on our reported income tax provision.

 

    Litigation provision. During fiscal 2014, we recorded a litigation provision of $450 million and related tax benefits associated with the interchange multidistrict litigation. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision. Monetary liabilities from settlements of, or judgments in, the interchange multidistrict litigation will be paid from the litigation escrow account under the retrospective responsibility plan.

 

     Three Months Ended September 30,  
     Operating Expenses     Operating Margin(1),(2)      Net Income      Diluted Earnings per
Share(2),(3)
 
     2015      2014     2015      2014      2015      2014      2015      2014  
     (in millions, except percentages and per share data)  

As reported

   $ 1,288       $ 1,677        64%         48%       $    1,512       $    1,073       $ 0.62       $ 0.43   

Litigation provision

     —           (450     —               14%         —           283         —           0.11   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

As adjusted

   $ 1,288       $ 1,227        64%         62%       $ 1,512       $ 1,356       $ 0.62       $ 0.54   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted-average shares outstanding, as reported

                      2,440         2,493   
     Twelve Months Ended September 30,  
     Operating Expenses     Operating Margin(1),(2)      Net Income      Diluted Earnings per
Share(2),(3)
 
     2015      2014     2015      2014      2015      2014      2015      2014  
     (in millions, except percentages and per share data)  

As reported

   $ 4,816       $ 5,005        65%         61%       $ 6,328       $ 5,438       $ 2.58       $ 2.16   

Revaluation of Visa Europe put option

     —           —          —               —               110         —           0.04         —     

Litigation provision

     —           (450     —               4%         —           283         —           0.11   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

As adjusted

   $ 4,816       $ 4,555        65%         64%       $ 6,438       $ 5,721       $ 2.62       $ 2.27   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted-average shares outstanding, as reported

                      2,457         2,523   

 

(1)  Operating margin is calculated as operating income divided by total operating revenues.
(2)  Figures in the table may not recalculate exactly due to rounding. Operating margin and diluted earnings per share figures are calculated based on unrounded numbers.
(3) The per share amounts for the prior periods presented have been retroactively adjusted to reflect the four-for-one stock split effected in the fiscal second quarter of 2015.


LOGO

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended September 30, 2015, as well as the prior four quarterly reporting periods and the 12 months ended September 30, 2015 and 2014, for cards carrying the Visa, Visa Electron and Interlink brands.

1. Branded Volume and Transactions

The tables present regional total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.

 

    For the 3 Months Ended September 30, 2015    
    Total
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
    Cash
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
   

Cash
Transactions
(millions)

 

All Visa Credit & Debit

                       

Asia Pacific

  $ 509        0.6%        11.0%      $ 371        5.5%        16.4%        4,664      $ 138        -10.4%        -1.3%      1,041  

Canada

    58        -11.9%        5.4%        54        -12.0%        5.2%        699        5        -10.7%        6.9%      12  

CEMEA

    231        -17.2%        9.3%        61        -9.4%        17.8%        1,923        170        -19.7%        6.5%      1,203  

LAC

    227        -17.7%        11.0%        85        -18.6%        13.3%        2,708        142        -17.2%        9.6%      1,093  

US          

    822        8.7%        8.7%        693        9.7%        9.7%        13,648        129        3.8%        3.8%      957  
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

Visa Inc.

    1,848        -1.9%        9.6%        1,265        3.9%        12.0%        23,643        584        -12.5%        4.7%      4,305  

Visa Credit Programs

                       

US

  $ 359        9.9%        9.9%      $ 345        10.2%        10.2%        4,221      $ 14        3.0%        3.0%      17  

International

    491        -2.8%        14.0%        455        -0.5%        15.5%        6,214        36        -24.9%        -1.7%      164  
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

Visa Inc.

    850        2.2%        12.2%        800        3.8%        13.1%        10,436        50        -18.6%        -0.4%      182  

Visa Debit Programs

                       

US

  $ 463        7.9%        7.9%      $ 349        9.3%        9.3%        9,427      $ 114        3.9%        3.9%      939  

International

    535        -14.0%        7.0%        116        -9.0%        12.8%        3,780        420        -15.3%        5.5%      3,184  
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

Visa Inc.

    999        -5.1%        7.4%        465        4.1%        10.1%        13,207        534        -11.8%        5.2%      4,124  
    For the 3 Months Ended June 30, 2015
    Total
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
    Cash
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
   

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

All Visa Credit & Debit

                         

Asia Pacific

  $ 510        4.3%        10.9%      $ 364        7.9%        15.3%        4,394      $ 145        -3.8%        1.1%      1,003   725   822

Canada

    62        -5.0%        6.0%        57        -5.3%        5.7%        679        5        -2.5%        8.9%      12   42   49

CEMEA

    238        -13.8%        7.3%        61        -6.0%        15.3%        1,783        177        -16.3%        4.8%      1,195   332   321

LAC

    237        -10.9%        11.6%        89        -12.4%        12.5%        2,595        148        -10.0%        11.1%      1,072   420   451

US          

    809        8.0%        8.0%        683        8.8%        8.8%        13,257        126        3.8%        3.8%      951   629   799
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

 

 

Visa Inc.

    1,855        0.6%        9.1%        1,253        5.2%        11.0%        22,709        602        -7.9%        5.2%      4,232   2,147   2,442

Visa Credit Programs

                         

US

  $ 352        11.3%        11.3%      $ 339        11.6%        11.6%        4,072      $ 13        3.6%        3.6%      16   246   323

International

    490        0.6%        12.9%        453        3.0%        14.5%        5,915        37        -21.7%        -3.8%      160   496   554
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

 

 

Visa Inc.

    843        4.8%        12.2%        792        6.5%        13.3%        9,987        51        -16.3%        -1.9%      177   742   876

Visa Debit Programs

                         

US

  $ 457        5.5%        5.5%      $ 344        6.1%        6.1%        9,185      $ 113        3.8%        3.8%      935   384   476

International

    555        -8.6%        7.4%        117        -4.7%        11.3%        3,537        438        -9.6%        6.4%      3,121   1,021   1,089
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

 

 

Visa Inc.

    1,012        -2.7%        6.5%        461        3.1%        7.4%        12,722        551        -7.1%        5.9%      4,056   1,405   1,565


Operational Performance Data

 

 

   

For the 3 Months Ended March 31, 2015

 
    Total
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
    Cash
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
    Accounts
(millions)
    Cards
(millions)
 

All Visa Credit & Debit

                         

Asia Pacific

  $ 495        2.9%        8.6%      $ 343        4.8%        11.6%        4,092      $ 152        -1.2%        2.4%        986        711        809   

Canada

    54        -5.0%        7.1%        49        -5.3%        6.8%        602        5        -1.7%        10.9%        12        42        49   

CEMEA

    212        -16.0%        11.8%        54        -8.2%        19.9%        1,615        158        -18.4%        9.3%        1,121        329        323   

LAC

    243        -2.9%        13.4%        93        -1.3%        15.7%        2,529        149        -3.8%        12.0%        1,042        417        450   

US          

    748        8.4%        8.4%        628        9.2%        9.2%        12,206        120        4.3%        4.3%        890        621        789   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    1,751        1.2%        9.5%        1,168        5.4%        10.8%        21,044        583        -6.2%        7.0%        4,051        2,120        2,420   

Visa Credit Programs

                         

US

  $ 316        12.3%        12.3%      $ 303        12.3%        12.3%        3,623      $ 13        12.1%        12.1%        15        241        318   

International

    463        0.0%        11.5%        428        2.7%        12.8%        5,533        35        -24.2%        -2.6%        153        489        546   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    779        4.6%        11.8%        731        6.4%        12.6%        9,156        48        -16.8%        1.0%        168        730        864   

Visa Debit Programs

                         

US

  $ 433        5.8%        5.8%      $ 325        6.5%        6.5%        8,583      $ 107        3.4%        3.4%        875        379        471   

International

    540        -6.4%        9.4%        111        -3.6%        12.0%        3,306        429        -7.1%        8.7%        3,008        1,011        1,085   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    972        -1.3%        7.7%        437        3.8%        7.9%        11,889        536        -5.1%        7.6%        3,883        1,390        1,556   
    For the 3 Months Ended December 31, 2014  
    Total
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
    Cash
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
    Accounts
(millions)
    Cards
(millions)
 

All Visa Credit & Debit

                         

Asia Pacific

  $ 511        3.6%        8.0%      $ 359        5.8%        10.7%        4,186      $ 152        -1.4%        1.9%        974        698        797   

Canada

    66        -0.1%        8.7%        62        -0.1%        8.7%        671        5        0.2%        9.0%        11        42        49   

CEMEA

    264        -7.8%        15.7%        65        3.2%        26.6%        1,616        199        -10.9%        12.5%        1,213        325        321   

LAC

    286        -0.4%        13.8%        109        -0.6%        15.3%        2,697        177        -0.2%        12.8%        1,130        415        453   

US          

    772        9.4%        9.4%        651        10.2%        10.2%        12,595        121        5.2%        5.2%        915        611        782   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    1,899        3.3%        10.4%        1,245        7.0%        11.4%        21,765        654        -3.1%        8.6%        4,243        2,090        2,402   

Visa Credit Programs

                         

US

  $ 341        13.7%        13.7%      $ 327        13.9%        13.9%        3,957      $ 13        9.2%        9.2%        16        236        313   

International

    511        1.6%        11.0%        468        4.0%        12.2%        5,775        43        -18.3%        -0.4%        173        485        544   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    851        6.1%        12.1%        795        7.8%        12.9%        9,732        56        -13.1%        1.7%        189        721        857   

Visa Debit Programs

                         

US

  $ 431        6.2%        6.2%      $ 324        6.6%        6.6%        8,639      $ 108        4.7%        4.7%        899        375        469   

International

    616        -2.2%        11.3%        127        2.6%        15.4%        3,394        490        -3.4%        10.3%        3,155        994        1,076   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    1,048        1.1%        9.1%        450        5.5%        9.0%        12,033        597        -2.0%        9.2%        4,054        1,369        1,545   

 


Operational Performance Data

 

 

    For the 3 Months Ended September 30, 2014  
    Total
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
    Cash
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
    Accounts
(millions)
    Cards
(millions)
 

All Visa Credit & Debit

                         

Asia Pacific

  $ 506        9.1%        9.1%      $ 352        11.9%        12.1%        4,000      $ 154        3.2%        2.9%        960        677        774   

Canada

    66        2.0%        7.4%        61        1.7%        7.0%        651        5        5.5%        11.0%        12        40        47   

CEMEA

    279        5.3%        15.2%        68        17.8%        25.6%        1,487        212        1.8%        12.1%        1,163        321        318   

LAC

    276        6.6%        12.2%        105        7.4%        13.3%        2,496        171        6.1%        11.6%        1,056        417        448   

US          

    756        9.2%        9.2%        632        9.9%        9.9%        12,314        124        6.0%        6.0%        952        587        754   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    1,884        7.9%        10.2%        1,217        10.2%        11.2%        20,947        667        4.0%        8.2%        4,143        2,041        2,341   

Visa Credit Programs

                         

US

  $ 327        12.7%        12.7%      $ 313        12.8%        12.8%        3,734      $ 14        11.8%        11.8%        17        230        304   

International

    505        7.4%        10.1%        458        9.0%        11.2%        5,554        47        -6.0%        -0.5%        177        484        545   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    832        9.4%        11.2%        770        10.5%        11.9%        9,289        61        -2.5%        2.6%        194        714        850   

Visa Debit Programs

                         

US

  $ 429        6.7%        6.7%      $ 319        7.2%        7.2%        8,579      $ 110        5.3%        5.3%        935        357        450   

International

    623        6.8%        11.8%        127        16.6%        20.6%        3,079        496        4.6%        9.7%        3,014        970        1,042   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    1,052        6.8%        9.4%        447        9.7%        10.2%        11,658        606        4.7%        8.7%        3,949        1,327        1,491   

 


Operational Performance Data

 

 

    For the 12 Months Ended September 30, 2015      
    Total
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
    Cash
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
   

Cash
Transactions
(millions)

 

All Visa Credit & Debit

                       

Asia Pacific

  $ 2,024        2.8%        9.6%      $ 1,438        6.0%        13.5%        17,337      $ 587        -4.2%        1.1%      4,003  

Canada

    240        -5.5%        6.8%        221        -5.7%        6.7%        2,651        19        -3.8%        8.9%      46  

CEMEA

    945        -13.6%        11.0%        241        -5.1%        19.9%        6,937        704        -16.2%        8.3%      4,732  

LAC

    993        -8.0%        12.5%        376        -8.3%        14.3%        10,529        616        -7.8%        11.4%      4,337  

US          

    3,152        8.6%        8.6%        2,655        9.5%        9.5%        51,706        496        4.3%        4.3%      3,713  
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

Visa Inc.

    7,354        0.8%        9.6%        4,931        5.4%        11.3%        89,160        2,422        -7.4%        6.4%      16,832  

Visa Credit Programs

                       

US

  $ 1,367        11.7%        11.7%      $ 1,313        11.9%        11.9%        15,873      $ 54        6.8%        6.8%      65  

International

    1,955        -0.2%        12.3%        1,805        2.2%        13.7%        23,437        150        -22.1%        -2.1%      650  
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

Visa Inc.

    3,322        4.4%        12.1%        3,118        6.1%        13.0%        39,310        205        -16.1%        0.1%      715  

Visa Debit Programs

                       

US

  $ 1,784        6.3%        6.3%      $ 1,342        7.1%        7.1%        35,833      $ 442        4.0%        4.0%      3,649  

International

    2,247        -7.8%        8.8%        471        -3.7%        12.9%        14,017        1,776        -8.8%        7.8%      12,468  
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

Visa Inc.

    4,031        -2.0%        7.7%        1,813        4.1%        8.6%        49,850        2,218        -6.5%        7.0%      16,117  
    For the 12 Months Ended September 30, 2014  
    Total
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
    Cash
Volume
($ billions)
    Growth
(Nominal
USD)
    Growth
(Constant
USD)
   

Cash
Transactions
(millions)

 

Accounts
(millions)

  Cards
(millions)
 

All Visa Credit & Debit

                         

Asia Pacific

  $ 1,968        7.7%        10.8%      $ 1,356        10.6%        13.5%        15,072      $ 612        1.9%        5.2%      3,638   677     774   

Canada

    254        0.8%        7.6%        234        0.8%        7.6%        2,439        20        0.6%        7.3%      46   40     47   

CEMEA

    1,094        6.0%        13.9%        254        18.9%        26.2%        5,363        840        2.6%        10.6%      4,637   321     318   

LAC

    1,079        0.6%        10.9%        410        2.3%        13.5%        9,776        668        -0.4%        9.4%      4,118   417     448   

US          

    2,902        8.6%        8.6%        2,426        9.3%        9.3%        47,270        476        5.3%        5.3%      3,668   587     754   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

 

 

 

 

Visa Inc.

    7,297        6.4%        10.1%        4,680        9.0%        11.4%        79,920        2,617        2.1%        7.8%      16,108   2,041     2,341   

Visa Credit Programs

                         

US

  $ 1,224        11.1%        11.1%      $ 1,173        11.3%        11.3%        13,902      $ 51        6.1%        6.1%     

64

 

230

    304   

International

    1,958        5.7%        10.8%        1,765        6.9%        11.8%        21,283        193        -4.0%        0.8%     

733

 

484

    545   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

 

 

 

 

Visa Inc.

    3,182        7.7%        10.9%        2,938        8.6%        11.6%        35,185        244        -2.0%        2.1%     

796

 

714

    850   

Visa Debit Programs

                         

US

  $ 1,678        6.8%        6.8%      $ 1,253        7.4%        7.4%        33,368      $ 425        5.3%        5.3%     

3,604

 

357

    450   

International

    2,437        4.5%        11.7%        489        15.7%        23.1%        11,367        1,948        2.0%        9.2%     

11,707

 

970

    1,042   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

 

 

 

 

Visa Inc.

    4,115        5.4%        9.5%        1,742        9.6%        10.9%        44,735        2,373        2.5%        8.4%     

15,312

 

1,327

    1,491   

 


Operational Performance Data

 

 

2. Cross-Border Volume

The table below represents cross-border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross-border volume refers to payments and cash volume where the issuing country is different from the merchant country.

 

Period

   Growth
(Nominal
        USD)        
  Growth
(Constant
        USD)        

3 Months Ended

    

Sep 30, 2015

   -4%     5%

Jun 30, 2015

   0%     8%

Mar 31, 2015

   2%     8%

Dec 31, 2014

   4%     8%

Sep 30, 2014

   9%   10%

12 Months Ended

    

Sep 30, 2015

   0%     7%

Sep 30, 2014

   8%     9%

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks.

 

Period

   Processed
Transactions
        (millions)        
       Growth    

3 Months Ended

     

Sep 30, 2015

   18,365      8%

Jun 30, 2015

   18,024      8%

Mar 31, 2015

   16,980    11%

Dec 31, 2014

   17,599    10%

Sep 30, 2014

   16,991    10%

12 Months Ended

     

Sep 30, 2015

   70,968      9%

Sep 30, 2014

   64,993    11%

 


Operational Performance Data

 

 

Footnote

Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron and Interlink brands for the relevant period; and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total volume represents payments volume plus cash volume.

Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa’s signature based and Interlink (PIN) debit programs.

The data presented is based on results reported quarterly by Visa’s financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable.

On occasion, previously presented information may be updated. Prior period updates, if any, are not material.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Effective with the 3 months ended September 2013, Croatia moved from the CEMEA region to Visa Europe. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. International includes Asia Pacific, Canada, CEMEA and LAC.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported (“Nominal USD”). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information (“Constant USD”). This presentation represents Visa’s historical methodology which may be subject to review and refinement.