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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
[1]
Jun. 30, 2017
Jun. 30, 2016
[1]
Operating Revenues        
Service revenues $ 1,948 $ 1,635 $ 5,859 $ 4,979
Data processing revenues 1,984 1,541 5,719 4,493
International transaction revenues 1,571 1,084 4,529 3,160
Other revenues 209 209 615 605
Client incentives (1,147) (839) (3,219) (2,416)
Net operating revenues 4,565 3,630 13,503 10,821
Operating Expenses        
Personnel 698 509 1,973 1,536
Marketing 221 189 632 569
Network and processing 158 123 453 377
Professional fees 102 138 265 276
Depreciation and amortization 132 120 409 361
General and administrative 230 246 822 566
Litigation provision (Note 13) 0 0 17 1
Visa Europe Framework Agreement loss (Note 2) 0 1,877 0 1,877
Total operating expenses 1,541 3,202 4,571 5,563
Operating income 3,024 428 8,932 5,258
Non-operating (Expense) Income        
Interest expense (140) (131) (415) (292)
Other 30 125 78 536
Non-operating (expense) income (110) (6) (337) 244
Income before income taxes 2,914 422 8,595 5,502
Income tax provision (Note 12) 855 10 4,036 1,442
Net income $ 2,059 $ 412 $ 4,559 $ 4,060
Class A common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) [2] $ 0.87 $ 0.17 [3] $ 1.90 $ 1.69 [4]
Basic weighted-average shares outstanding (in shares) 1,840 1,899 1,852 1,915
Diluted earnings per share (in dollars per share) [2] $ 0.86 $ 0.17 [3] $ 1.90 $ 1.69 [3]
Diluted weighted-average shares outstanding (in shares) [5] 2,385 2,386 2,404 2,406
Class B common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) [2] $ 1.43 $ 0.29 $ 3.13 $ 2.79
Basic weighted-average shares outstanding (in shares) 245 245 245 245
Diluted earnings per share (in dollars per share) [2] $ 1.42 $ 0.28 $ 3.13 $ 2.78
Diluted weighted-average shares outstanding (in shares) 245 245 245 245
Class C common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) [2] $ 3.46 $ 0.69 $ 7.60 $ 6.76
Basic weighted-average shares outstanding (in shares) 14 18 15 19
Diluted earnings per share (in dollars per share) [2] $ 3.45 $ 0.69 $ 7.59 $ 6.75
Diluted weighted-average shares outstanding (in shares) 14 18 15 19
[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 was 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 was immaterial. See Note 2—Visa Europe and Note 10—Earnings Per Share 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 was immaterial. The dilutive impact of the U.K.&I and Europe 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 was immaterial.
[4] 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 was immaterial. The dilutive impact of the U.K.&I and Europe 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 was immaterial.
[5] 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 4 million and 5 million common stock equivalents for the three and nine months ended June 30, 2017, respectively, and 5 million common stock equivalents for the three and nine months ended June 30, 2016, because their effect would be dilutive. The computation excludes less than 1 million of common stock equivalents for the three months ended June 30, 2017 and 3 million of common stock equivalents for the nine months ended June 30, 2017, and 1 million and 2 million of common stock equivalents for the three and nine months ended June 30, 2016, respectively, because their effect would have been anti-dilutive.