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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Operating Revenues        
Service revenues $ 1,635 [1] $ 1,550 $ 4,979 [1] $ 4,665
Data processing revenues 1,541 [1] 1,400 4,493 [1] 4,123
International transaction revenues 1,084 [1] 1,039 3,160 [1] 2,973
Other revenues 209 [1] 199 605 [1] 607
Client incentives (839) [1] (670) (2,416) [1] (2,059)
Total operating revenues 3,630 [1] 3,518 10,821 [1] 10,309
Operating Expenses        
Personnel 509 [1] 566 1,536 [1] 1,558
Marketing 189 [1] 224 569 [1] 619
Network and processing 123 [1] 117 377 [1] 340
Professional fees 138 [1] 82 276 [1] 229
Depreciation and amortization 120 [1] 130 361 [1] 375
General and administrative 246 [1] 137 566 [1] 404
Litigation provision (Note 13) 0 [1] 0 1 [1] 3
Visa Europe Framework Agreement loss (Note 2) 1,877 [1] 0 1,877 [1] 0
Total operating expenses 3,202 [1] 1,256 5,563 [1] 3,528
Operating income 428 [1] 2,262 5,258 [1] 6,781
Non-operating (Expense) Income        
Interest expense (131) [1] 8 (292) [1] (2)
Other (Note 4 and Note 8) 125 [1] (102) 536 [1] (67)
Total non-operating (expense) income (6) [1] (94) 244 [1] (69)
Income before income taxes 422 [1] 2,168 5,502 [1] 6,712
Income tax provision (Note 12) 10 [1] 471 1,442 [1] 1,896
Net income $ 412 [1] $ 1,697 $ 4,060 [1] $ 4,816
Class A common stock        
Earnings Per Share        
Basic earnings per share (Note 10) (in dollars per share) [2] $ 0.17 [3] $ 0.69 $ 1.69 [3] $ 1.96
Basic weighted-average shares outstanding (Note 10) (in shares) 1,899 [3] 1,955 1,915 [3] 1,964
Diluted earnings per share (Note 10) (in dollars per share) [2] $ 0.17 [3] $ 0.69 $ 1.69 [3] $ 1.96
Diluted weighted-average shares outstanding (Note 10) (in shares) [4] 2,386 [3] 2,448 2,406 [3] 2,462
Class B common stock        
Earnings Per Share        
Basic earnings per share (Note 10) (in dollars per share) [2] $ 0.29 [3] $ 1.14 $ 2.79 [3] $ 3.23
Basic weighted-average shares outstanding (Note 10) (in shares) 245 [3] 245 245 [3] 245
Diluted earnings per share (Note 10) (in dollars per share) [2] $ 0.28 [3] $ 1.14 $ 2.78 [3] $ 3.22
Diluted weighted-average shares outstanding (Note 10) (in shares) 245 [3] 245 245 [3] 245
Class C common stock        
Earnings Per Share        
Basic earnings per share (Note 10) (in dollars per share) [2] $ 0.69 [3] $ 2.78 $ 6.76 [3] $ 7.84
Basic weighted-average shares outstanding (Note 10) (in shares) 18 [3] 20 19 [3] 21
Diluted earnings per share (Note 10) (in dollars per share) [2] $ 0.69 [3] $ 2.77 $ 6.75 [3] $ 7.82
Diluted weighted-average shares outstanding (Note 10) (in shares) 18 [3] 20 19 [3] 21
[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. Earnings per share is calculated based on unrounded numbers.
[3] 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. The dilutive impact of the outstanding shares of series B and C convertible participating preferred stock from June 21, 2016 through June 30, 2016 was also not included in the calculation of basic or diluted earnings per share as the effect is immaterial. See Note 2—Visa Europe and Note 10—Earnings Per Share to these unaudited consolidated financial statements.
[4] Weighted-average diluted shares outstanding are calculated on an as-converted basis, and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes approximately 5 million common stock equivalents for the three and nine months ended June 30, 2016 and 2015, because their effect would be dilutive. The computation excludes 1 million of common stock equivalents for the three months ended June 30, 2016 and 2015, and 2 million of common stock equivalents for the nine months ended June 30, 2016 and 2015, because their effect would have been anti-dilutive.