EX-99.1 2 d173021dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

 

Visa Inc. Reports Fiscal Second Quarter 2016 Results

 

 

 

  •   GAAP quarterly net income of $1.7 billion or $0.71 per share including a non-recurring, non-operating gain related to currency forward contracts

 

  •   Adjusted quarterly net income of $1.6 billion or $0.68 per share excluding a non-recurring, non-operating gain related to currency forward contracts

San Francisco, CA, April 21, 2016 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal second quarter 2016. GAAP net income for the quarter, inclusive of a non-recurring, non-operating gain related to currency forward contracts, was $1.7 billion, or $0.71 per share. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

During the fiscal second quarter, the Company entered into currency forward contracts to mitigate a portion of the foreign currency exchange rate risk associated with the upfront cash consideration to be paid in the anticipated Visa Europe acquisition. As a result, the Company recorded non-recurring, net unrealized gains of $116 million in non-operating income. Excluding this non-operating gain, adjusted net income for the quarter was $1.6 billion, an increase of 5% over the prior year. Adjusted earnings per share was $0.68, an increase of 7% nominally, or 12% in constant dollars, over the prior year. The Company’s adjusted quarterly net income and earnings per share are non-GAAP financial measures that are reconciled to their most directly comparable U.S. GAAP financial measures in the accompanying financial tables.

Net operating revenue in the fiscal second quarter of 2016 was $3.6 billion, an increase of 6% nominally or 9% on a constant dollar basis over the prior year, driven by continued growth in processed transactions and nominal payments volume. Currency rate shifts versus the prior year negatively impacted reported net operating revenue growth by approximately 3 percentage points.

“Visa reported solid financial results in the fiscal second quarter. The continued headwinds of the strong U.S. dollar, lower oil prices, and an uneven global economy are driving continued weak cross-border spend, but domestic spend continues at reasonably strong levels consistent with last quarter. In fact, most of our growth metrics look very similar to what we saw last quarter. The U.S. consumer remains strong, but we see weakness in China, Brazil, and oil based economies. Since we are not seeing any material improvements in economic trends, we are cautious as we head into the second half of fiscal 2016. The continued headwinds we see do not take away from the underlying growth in our business and our continued conviction in the great opportunities to grow global penetration of electronic payments for years to come,” said Charlie Scharf, Chief Executive Officer of Visa Inc.

 

1

Fiscal Second Quarter 2016 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2015 on which fiscal second quarter service revenue is recognized, was 12% over the prior year at $1.3 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2016, 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 March 31, 2016.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended March 31, 2016, were 18.5 billion, a 9% increase over the prior year.

Fiscal second quarter 2016 service revenues were $1.7 billion, an increase of 8% 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 10% over the prior year to $1.5 billion. International transaction revenues grew 8% over the prior year to $1.0 billion. Other revenues were $198 million, a decrease of 3% over the prior year. Client incentives, which are a contra revenue item, were $789 million and represent 17.9% of gross revenues.

Total operating expenses were $1.2 billion in the fiscal second quarter, a 6% increase over the prior year, primarily due to increases in personnel, general and administrative, and network and processing expenses.

The Company recognized interest expense of $125 million for the quarter ended March 31, 2016 as a result of the issuance of approximately $16.0 billion of fixed-rate senior notes in the quarter ended December 31, 2015.

The effective tax rate was 30.1% for the quarter ended March 31, 2016.

Cash, cash equivalents, and available-for-sale investment securities were $23.4 billion at March 31, 2016.

 

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The weighted-average number of diluted shares of class A common stock outstanding was 2.4 billion for the quarter ended March 31, 2016.

Notable Events:

During the three months ended March 31, 2016, the Company repurchased 24.2 million shares of class A common stock, at an average price of $72.23 per share, using $1.8 billion of cash on hand. Fiscal year to date through March 31, 2016, the Company repurchased a total of 49.9 million shares of class A common stock, at an average price of $75.47 per share, using $3.8 billion of cash on hand. The Company has $4.0 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On April 20, 2016, the board of directors declared a quarterly cash dividend of $0.14 per share of class A common stock (determined in the case of class B and C common stock on an as-converted basis) payable on June 7, 2016, to all holders of record of the Company’s class A, B and C common stock as of May 13, 2016.

Financial Outlook for Fiscal Full-Year 2016:

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

 

•   Annual operating margin: Mid 60s; and

 

•   Annual free cash flow: About $7 billion.

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

 

•   Annual net revenue growth: 7% to 8% range on a constant dollar basis, with an expectation of about 3 percentage points of negative foreign currency impact;

 

•   Client incentives as a percentage of gross revenues: High-end of the 17.5% to 18.5% range;

 

•   Adjusted effective tax rate: About 30%; and

 

•   Annual adjusted diluted class A common stock earnings per share growth: Low double-digits on a constant dollar basis, with an expectation of about 4 percentage points of negative foreign currency impact. This now includes interest expense of about $390 million, or over 9 cents of earnings per share, which equates to almost 4 percentage points of reduced year-over-year growth.

Note: The financial outlook for fiscal full-year 2016 excludes any impact from the Visa Europe transaction.

Fiscal Second Quarter 2016 Earnings Results Conference Call Details: Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at http://investor.visa.com.

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.

 

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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.

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 U.S., including new or revised regulations issued under the Dodd-Frank Wall Street Reform and Consumer Protection Act;

 

  •   increased regulation in jurisdictions outside of the U.S.;

 

  •   increased government support of national payment networks outside the U.S.; 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 U.S. 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;

 

•   the transaction with Visa Europe may not be consummated on the terms currently contemplated or at all;

 

•   Visa Europe’s business may not be successfully integrated with our business or we may not achieve the anticipated benefits of the transaction;

 

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•   the costs and risks associated with the transaction with Visa Europe;

 

•   matters arising in connection with Visa Europe’s or our efforts to comply with and satisfy applicable regulatory approvals and closing conditions relating to the transaction;

 

•   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, 2015, 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

 

5

VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

                                                 
     March 31,
2016		     September 30,
2015		  
     (in millions, except par value data)  

Assets

     

Cash and cash equivalents

    $ 15,943      $ 3,518   

Restricted cash—litigation escrow

      1,061        1,072   

Investment securities:

     

Trading

      69        66   

Available-for-sale

      3,885        2,431   

Settlement receivable

      414        408   

Accounts receivable

      944        847   

Customer collateral

      1,050        1,023   

Current portion of client incentives

      291        303   

Prepaid expenses and other current assets

      646        353   
  

 

 

    

 

 

  

Total current assets

      24,303        10,021   

Investment securities, available-for-sale

      3,577        3,384   

Client incentives

      540        110   

Property, equipment and technology, net

      1,883        1,888   

Other assets

      852        778   

Intangible assets, net

      11,335        11,361   

Goodwill

      11,836        11,825   
  

 

 

    

 

 

  

Total assets

    $ 54,326      $ 39,367   
  

 

 

    

 

 

  

Liabilities

     

Accounts payable

    $ 90      $ 127   

Settlement payable

      723        780   

Customer collateral

      1,050        1,023   

Accrued compensation and benefits

      376        503   

Client incentives

      1,132        1,049   

Accrued liabilities

      741        849   

Accrued litigation

      1,013        1,024   
  

 

 

    

 

 

  

Total current liabilities

      5,125        5,355   

Long-term debt

      15,876        —     

Deferred tax liabilities

      3,256        3,273   

Other liabilities

      938        897   
  

 

 

    

 

 

  

Total liabilities

      25,195        9,525   
  

 

 

    

 

 

  

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, 1,905 and 1,950 shares issued and outstanding at March 31, 2016 and September 30, 2015, respectively

      —          —     

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at March 31, 2016 and September 30, 2015

      —          —     

Class C common stock, $0.0001 par value, 1,097 shares authorized, 19 and 20 shares issued and outstanding at March 31, 2016 and September 30, 2015, respectively

      —          —     

Additional paid-in capital

      17,645        18,073   

Accumulated income

      11,582        11,843   

Accumulated other comprehensive loss, net:

     

Investment securities, available-for-sale

      40        5   

Defined benefit pension and other postretirement plans

      (126 )      (161 ) 

Derivative instruments classified as cash flow hedges

      (9 )      83   

Foreign currency translation adjustments

      (1 )      (1 ) 
  

 

 

    

 

 

  

Total accumulated other comprehensive loss, net

      (96 )      (74 ) 
  

 

 

    

 

 

  

Total equity

      29,131        29,842   
  

 

 

    

 

 

  

Total liabilities and equity

    $ 54,326      $ 39,367   
  

 

 

    

 

 

  

VISA INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)

 

     Three Months Ended
March 31,		     Six Months Ended
March 31,		  
     2016     2015     2016     2015  
     (in millions, except per share data)  

Operating Revenues

         

Service revenues

    $ 1,699      $ 1,577      $ 3,344      $ 3,115   

Data processing revenues

      1,473        1,340        2,952        2,723   

International transaction revenues

      1,045        964        2,076        1,934   

Other revenues

      198        204        396        408   

Client incentives

      (789 )      (676 )      (1,577 )      (1,389 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating revenues

      3,626        3,409        7,191        6,791   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating Expenses

         

Personnel

      528        483        1,027        992   

Marketing

      186        190        380        395   

Network and processing

      126        109        254        223   

Professional fees

      66        77        138        147   

Depreciation and amortization

      121        125        241        245   

General and administrative

      164        141        320        267   

Litigation provision

      1        3        1        3   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      1,192        1,128        2,361        2,272   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      2,434        2,281        4,830        4,519   
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-operating Income

         

Interest expense

      (132 )      (7 )      (161 )      (10 ) 

Other

      139        8        411        35   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total non-operating income

      7        1        250        25   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      2,441        2,282        5,080        4,544   

Income tax provision

      734        732        1,432        1,425   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 1,707      $ 1,550      $ 3,648      $ 3,119   
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic earnings per share

         

Class A common stock

    $ 0.71      $ 0.63      $ 1.51      $ 1.27   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B common stock

    $ 1.17      $ 1.04      $ 2.49      $ 2.09   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C common stock

    $ 2.85      $ 2.53      $ 6.05      $ 5.06   
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic weighted-average shares outstanding

         

Class A common stock

      1,909        1,963        1,923        1,969   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B common stock

      245        245        245        245   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C common stock

      19        20        19        21   
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings per share

         

Class A common stock

    $ 0.71      $ 0.63      $ 1.51      $ 1.26   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B common stock

    $ 1.17      $ 1.04      $ 2.49      $ 2.08   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C common stock

    $ 2.84      $ 2.52      $ 6.04      $ 5.05   
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted weighted-average shares outstanding

         

Class A common stock

      2,401        2,460        2,416        2,469   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B common stock

      245        245        245        245   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C common stock

      19        20        19        21   
  

 

 

    

 

 

    

 

 

    

 

 

  

VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

     Six Months Ended March 31,  
     2016     2015  
     (in millions)  

Operating Activities

     

Net income

    $ 3,648      $ 3,119   

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

     

Client incentives

      1,577        1,389   

Fair value adjustment for the Visa Europe put option

      (255 )      —     

Share-based compensation

      97        93   

Excess tax benefit for share-based compensation

      (43 )      (70 ) 

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

      241        245   

Deferred income taxes

      (29 )      173   

Other

      17        15   

Change in operating assets and liabilities:

     

Settlement receivable

      (6 )      107   

Accounts receivable

      (97 )      (74 ) 

Client incentives

      (1,912 )      (1,479 ) 

Other assets

      (397 )      (467 ) 

Accounts payable

      (34 )      (44 ) 

Settlement payable

      (57 )      (206 ) 

Accrued and other liabilities

      81        262   

Accrued litigation

      (12 )      (324 ) 
  

 

 

    

 

 

  

Net cash provided by operating activities

      2,819        2,739   
  

 

 

    

 

 

  

Investing Activities

     

Purchases of property, equipment, technology and intangible assets

      (250 )      (202 ) 

Proceeds from sales of property, equipment and technology

      —          10   

Investment securities, available-for-sale:

     

Purchases

      (17,437 )        (1,267 ) 

Proceeds from maturities and sales

      15,860        895   

Acquisition of business

      (14 )      —     

Purchases of / contributions to other investments

      (9 )      (2 ) 

Proceeds / distributions from other investments

      4        9   
  

 

 

    

 

 

  

Net cash used in investing activities

      (1,846 )      (557 ) 
  

 

 

    

 

 

  

Financing Activities

     

Repurchase of class A common stock

      (3,765 )      (1,855 ) 

Dividends paid

      (676 )      (591 ) 

Proceeds from issuance of senior notes

      15,971        —     

Debt issuance costs

      (96 )      —     

Payments from litigation escrow account—U.S. retrospective responsibility plan

      11        321   

Cash proceeds from issuance of common stock under employee equity plans

      49        46   

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

      (85 )      (106 ) 

Excess tax benefit for share-based compensation

      43        70   
  

 

 

    

 

 

  

Net cash provided by (used in) financing activities

      11,452        (2,115 ) 
  

 

 

    

 

 

  

Effect of exchange rate changes on cash and cash equivalents

      —          1   
  

 

 

    

 

 

  

Increase in cash and cash equivalents

      12,425        68   

Cash and cash equivalents at beginning of year

      3,518        1,971   
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 15,943      $ 2,039   
  

 

 

    

 

 

  

Supplemental Disclosure

     

Income taxes paid, net of refunds

    $ 1,501      $ 1,376   

Net unrealized gains on currency forward contracts

    $ 116      $ —     

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

    $ 38      $ 26   

VISA INC.

FISCAL 2016 AND 2015 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

                                                                                                                  
     Fiscal 2016 Quarter Ended     Fiscal 2015 Quarter Ended  
     March 31,
2016		     December 31,
2015		     September 30,
2015		     June 30,
2015		     March 31,
2015		  
     (in millions)  

Operating Revenues

           

Service revenues

    $ 1,699      $ 1,645      $ 1,637      $ 1,550      $ 1,577   

Data processing revenues

      1,473        1,479        1,429        1,400        1,340   

International transaction revenues

      1,045        1,031        1,091        1,039        964   

Other revenues

      198        198        216        199        204   

Client incentives

      (789 )      (788 )      (802 )      (670 )      (676 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating revenues

      3,626        3,565        3,571        3,518        3,409   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating Expenses

           

Personnel

      528        499        521        566        483   

Marketing

      186        194        253        224        190   

Network and processing

      126        128        134        117        109   

Professional fees

      66        72        107        82        77   

Depreciation and amortization

      121        120        119        130        125   

General and administrative

      164        156        143        137        141   

Litigation provision

      1        —          11        —          3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      1,192        1,169        1,288        1,256        1,128   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      2,434        2,396        2,283        2,262        2,281   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-operating Income (Expense)

           

Interest expense

      (132 )      (29 )      —          8        (7 ) 

Other

      139        272        —          (102 )      8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-operating income (expense)

      7        243        —          (94 )      1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      2,441        2,639        2,283        2,168        2,282   

Income tax provision

      734        698        771        471        732   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 1,707      $ 1,941      $ 1,512      $ 1,697      $ 1,550   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

VISA INC.

RECONCILIATION OF NON-GAAP FINANCIAL RESULTS

(UNAUDITED)

The Company’s financial results during the first half of fiscal 2016 reflect the impact of significant non-operating items that the Company does not believe are indicative of its operating performance, as they are either non-recurring or have no cash impact. As such, the Company believes the presentation of adjusted financial results excluding the following two items provides a clearer understanding of its operating performance for the periods presented. There were no comparable adjustments recorded during the three or six months ended March 31, 2015.

 

  •   Net unrealized gains on currency forward contracts. During the second quarter of fiscal 2016, the Company entered into currency forward contracts to mitigate a portion of the foreign currency exchange rate risk associated with the upfront cash consideration to be paid in the anticipated Visa Europe acquisition. As a result, the Company recorded non-recurring, net unrealized gains of $116 million, before tax, in non-operating income. Net of related tax expense, determined by applying applicable federal and state tax rates, the impact to income was $81 million.

 

  •   Revaluation of Visa Europe put option (the “Put”). During the first quarter of fiscal 2016, the Company recorded a decrease of $255 million in the fair value of the Put, resulting in the recognition of non-cash, non-operating income in its financial results. This amount is not subject to income tax and therefore has no impact on the reported income tax provision.

Adjusted net income, effective income tax rate and diluted earnings per share are non-GAAP financial measures and should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following table reconciles the as-reported net income, effective income tax rate and diluted earnings per share, which are calculated in accordance with U.S. GAAP, to the respective non-GAAP adjusted financial measures for the three and six months ended March 31, 2016:

 

                                                                                                                             
    Three Months Ended March 31, 2016     Six Months Ended March 31, 2016  
    Net Income     Effective
Income
Tax
Rate(1)		     Diluted
Earnings
per
Share(1)		     Net Income     Effective
Income
Tax
Rate(1)		     Diluted
Earnings
per
Share(1)		  
    (in millions, except percentages and per share data)  

As reported

   $ 1,707        30%      $ 0.71      $ 3,648        28%      $ 1.51   

Net unrealized gains on currency forward contracts

     (81 )      —  %        (0.03 )      (81 )      —  %        (0.03 ) 

Revaluation of Visa Europe put option

     —          —  %        —          (255 )      2%        (0.11 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As adjusted

   $ 1,626        30%      $ 0.68      $ 3,312        30%      $ 1.37   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted weighted-average shares outstanding, as reported

         2,401            2,416   

 

(1)  Figures in the table may not recalculate exactly due to rounding. Effective income tax rate and diluted earnings per share figures are calculated based on unrounded numbers.

LOGO

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended March 31, 2016, as well as the prior four quarterly reporting periods and the 12 months ended March 31, 2016 and 2015, 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 March 31, 2016    
    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

   $ 513        3.6%        9.3%      $ 378        10.1%        15.0%        4,749      $ 135        -11.1%        -3.9%      1,008  

Canada

     51        -5.3%        5.0%        46        -5.6%        4.7%        656        5        -2.2%        8.4%      12  

CEMEA

     205        -3.2%        8.5%        57        5.0%        17.4%        2,186        148        -5.9%        5.5%      1,160  

LAC

     204        -16.0%        9.3%        79        -15.4%        14.6%        2,795        125        -16.4%        6.1%      1,081  

US          

     823        10.0%        10.0%        694        10.5%        10.5%        13,570        129        7.4%        7.4%      935  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  
                       

Visa Inc.

     1,796        2.5%        9.4%        1,254        7.4%        12.1%        23,957        542        -7.2%        3.6%      4,197  

Visa Credit Programs

                        

US

   $ 349        10.5%        10.5%      $ 334        10.5%        10.5%        4,063      $ 14        8.6%        8.6%      16  

International

     477        3.0%        12.5%        447        4.4%        13.7%        6,269        30        -13.7%        -2.6%      150  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  
                       

Visa Inc.

     826        6.0%        11.6%        782        6.9%        12.3%        10,332        44        -7.5%        0.7%      166  

Visa Debit Programs

                        

US

   $ 475        9.7%        9.7%      $ 360        10.5%        10.5%        9,506      $ 115        7.3%        7.3%      919  

International

     496        -8.2%        5.7%        113        1.5%        16.5%        4,118        383        -10.7%        2.9%      3,111  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  
                       

Visa Inc.

     970        -0.2%        7.6%        473        8.2%        11.9%        13,625        498        -7.1%        3.9%      4,030  
    For the 3 Months Ended December 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

   $ 524        2.5%        10.4%      $ 387        7.8%        15.6%        4,900      $ 137        -10.0%        -2.1%      1,003   740   840

Canada

     59        -10.7%        5.2%        55        -10.9%        4.9%        723        4        -8.3%        8.0%      11   47   54

CEMEA

     228        -13.5%        6.0%        60        -6.8%        12.5%        2,099        168        -15.7%        3.8%      1,236   336   326

LAC

     237        -17.0%        10.1%        89        -17.6%        13.9%        2,914        147        -16.7%        8.0%      1,174   416   451

US          

     842        9.0%        9.0%        714        9.7%        9.7%        13,970        128        5.7%        5.7%      935   648   820
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

                         

Visa Inc.

     1,890        -0.4%        9.0%        1,305        4.9%        11.6%        24,605        584        -10.6%        3.8%      4,359   2,186   2,490

Visa Credit Programs

                          

US

   $ 372        9.1%        9.1%      $ 358        9.2%        9.2%        4,393      $ 14        8.0%        8.0%      17   255   336

International

     504        -1.1%        12.3%        470        0.7%        13.7%        6,505        34        -20.7%        -3.9%      164   502   561
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

                         

Visa Inc.

     876        3.0%        10.9%        828        4.2%        11.7%        10,898        49        -13.9%        -0.7%      181   758   896

Visa Debit Programs

                          

US

   $ 470        9.0%        9.0%      $ 356        10.1%        10.1%        9,577      $ 114        5.5%        5.5%      918   392   484

International

     543        -11.8%        6.2%        121        -4.1%        15.1%        4,130        422        -13.7%        3.9%      3,260   1,036   1,110
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

                         

Visa Inc.

     1,013        -3.2%        7.5%        477        6.1%        11.3%        13,707        536        -10.3%        4.2%      4,179   1,429   1,594

Operational Performance 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)		     Accounts
(millions)		     Cards
(millions)		  

All Visa Credit & Debit

                          

Asia Pacific

   $ 510        0.7%        11.0%      $ 372        5.5%        16.4%        4,670      $ 138        -10.3%        -1.2%        1,029        738        835   

Canada

     58        -12.0%        5.2%        54        -12.1%        5.1%        698        5        -11.3%        6.0%        12        43        50   

CEMEA

     232        -17.1%        9.1%        61        -9.8%        16.9%        1,915        171        -19.4%        6.5%        1,195        333        321   

LAC

     227        -17.5%        10.8%        85        -18.2%        13.4%        2,704        142        -17.1%        9.3%        1,093        415        450   

US        

     822        8.7%        8.7%        693        9.7%        9.7%        13,661        129        4.0%        4.0%        959        630        802   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  
                         

Visa Inc.

     1,849        -1.8%        9.6%        1,265        3.9%        12.0%        23,647        585        -12.3%        4.7%        4,287        2,158        2,459   

Visa Credit Programs

                          

US

   $ 359        9.8%        9.8%      $ 345        10.1%        10.1%        4,221      $ 14        2.9%        2.9%        18        250        329   

International

     491        -2.8%        14.0%        456        -0.4%        15.5%        6,212        35        -25.4%        -2.6%        164        499        558   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  
                         

Visa Inc.

     850        2.2%        12.2%        800        3.9%        13.1%        10,433        50        -19.0%        -1.1%        181        749        887   

Visa Debit Programs

                          

US

   $ 463        7.9%        7.9%      $ 349        9.2%        9.2%        9,439      $ 115        4.1%        4.1%        942        380        473   

International

     536        -13.9%        7.0%        116        -9.0%        12.5%        3,774        420        -15.1%        5.6%        3,165        1,029        1,099   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  
                         

Visa Inc.

     999        -5.0%        7.4%        464        4.0%        10.0%        13,214        535        -11.6%        5.2%        4,106        1,410        1,572   
    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        -3.7%        1.1%        1,003        725        822   

Canada

     62        -4.9%        6.1%        57        -5.1%        5.9%        680        5        -2.4%        8.9%        12        42        49   

CEMEA

     238        -13.8%        7.3%        61        -5.9%        15.3%        1,784        177        -16.2%        4.8%        1,195        332        321   

LAC

     237        -10.8%        11.7%        89        -11.9%        13.1%        2,596        148        -10.1%        10.9%        1,071        415        447   

US        

     810        8.0%        8.0%        683        8.8%        8.8%        13,264        126        3.8%        3.8%        951        628        798   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  
                         

Visa Inc.

     1,855        0.6%        9.1%        1,254        5.3%        11.1%        22,719        602        -8.0%        5.1%        4,231        2,141        2,438   

Visa Credit Programs

                          

US

   $ 352        11.3%        11.3%      $ 339        11.7%        11.7%        4,072      $ 13        3.5%        3.5%        16        246        323   

International

     491        0.7%        13.0%        453        3.1%        14.6%        5,916        37        -21.6%        -3.7%        160        496        554   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  
                         

Visa Inc.

     843        4.9%        12.3%        792        6.6%        13.3%        9,988        51        -16.2%        -1.9%        176        742        877   

Visa Debit Programs

                          

US

   $ 457        5.6%        5.6%      $ 344        6.2%        6.2%        9,192      $ 113        3.8%        3.8%        935        382        476   

International

     555        -8.5%        7.4%        117        -4.5%        11.5%        3,539        438        -9.6%        6.4%        3,120        1,017        1,085   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  
                         

Visa Inc.

     1,013        -2.7%        6.6%        462        3.2%        7.5%        12,731        551        -7.1%        5.8%        4,055        1,399        1,561   
    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%        8.5%      $ 343        4.8%        11.5%        4,092      $ 152        -1.2%        2.2%        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        -16.1%        12.3%        54        -8.2%        20.3%        1,615        158        -18.5%        9.8%        1,121        329        323   

LAC

     243        -2.8%        12.0%        93        -1.0%        12.7%        2,523        149        -3.9%        11.6%        1,042        416        449   

US        

     748        8.4%        8.4%        628        9.2%        9.2%        12,206        120        4.3%        4.3%        890        620        789   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  
                         

Visa Inc.

     1,751        1.2%        9.3%        1,168        5.4%        10.4%        21,039        584        -6.2%        6.8%        4,051        2,119        2,418   

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        0.1%        10.9%        428        2.7%        12.2%        5,532        35        -24.2%        -3.1%        153        488        546   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  
                         

Visa Inc.

     779        4.7%        11.5%        731        6.5%        12.2%        9,155        48        -16.8%        1.1%        168        730        864   

Visa Debit Programs

                          

US

   $ 433        5.8%        5.8%      $ 325        6.6%        6.6%        8,583      $ 107        3.4%        3.4%        875        379        471   

International

     540        -6.4%        9.1%        111        -3.6%        11.3%        3,301        429        -7.1%        8.5%        3,008        1,010        1,084   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

 

    

 

 

    

 

 

  
                         

Visa Inc.

     972        -1.4%        7.5%        437        3.8%        7.6%        11,884        536        -5.2%        7.4%        3,883        1,389        1,555   

Operational Performance Data

 

 

 

                                                                                                                    
    For the 12 Months Ended March 31, 2016      
    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

   $ 2,056        2.8%        10.4%      $ 1,501        7.8%        15.6%        18,714      $ 555        -8.8%        -1.5%      4,042  

Canada

     230        -8.4%        5.4%        211        -8.6%        5.2%        2,757        19        -6.2%        7.8%      46  

CEMEA

     902        -12.4%        7.7%        238        -4.8%        15.5%        7,984        664        -14.9%        5.1%      4,787  

LAC

     905        -15.4%        10.5%        342        -15.9%        13.7%        11,009        563        -15.1%        8.7%      4,419  

US          

     3,297        9.0%        9.0%        2,784        9.7%        9.7%        54,465        512        5.2%        5.2%      3,780  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  
                       

Visa Inc.

     7,390        0.2%        9.3%        5,078        5.4%        11.7%        94,928        2,312        -9.6%        4.3%      17,074  

Visa Credit Programs

                        

US

   $ 1,432        10.2%        10.2%      $ 1,375        10.4%        10.4%        16,750      $ 56        5.7%        5.7%      67  

International

     1,963        -0.1%        12.9%        1,826        1.9%        14.3%        24,902        137        -20.8%        -3.2%      638  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  
                       

Visa Inc.

     3,395        4.0%        11.7%        3,202        5.3%        12.6%        41,652        193        -14.6%        -0.8%      704  

Visa Debit Programs

                        

US

   $ 1,865        8.0%        8.0%      $ 1,409        9.0%        9.0%        37,714      $ 456        5.2%        5.2%      3,713  

International

     2,130        -10.7%        6.6%        467        -4.2%        13.9%        15,562        1,663        -12.4%        4.7%      12,656  
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  
                       

Visa Inc.

     3,995        -2.8%        7.3%        1,876        5.4%        10.2%        53,276        2,119        -9.1%        4.8%      16,370  
    For the 12 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

   $ 2,000        5.6%        8.8%      $ 1,392        8.3%        11.8%        16,099      $ 608        -0.1%        2.6%      3,829   711     809   

Canada

     251        -0.5%        7.7%        231        -0.5%        7.7%        2,550        20        -0.3%        7.9%      47   42     49   

CEMEA

     1,031        -3.4%        14.0%        251        7.3%        24.1%        6,104        780        -6.4%        11.1%      4,684   329     323   

LAC

     1,069        0.4%        11.7%        407        1.0%        12.4%        10,082        662        0.0%        11.3%      4,244   416     449   

US          

     3,026        9.1%        9.1%        2,539        9.8%        9.8%        49,337        487        5.3%        5.3%      3,699   620     789   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

 

  
                         

Visa Inc.

     7,377        4.6%        9.9%        4,819        7.9%        11.0%        84,173        2,557        -1.2%        7.5%      16,503   2,119     2,418   

Visa Credit Programs

                          

US

   $ 1,299        12.7%        12.7%      $ 1,246        12.8%        12.8%        14,888      $ 53        10.4%        10.4%     

65

  

241

     318   

International

     1,966        3.6%        10.3%        1,793        5.6%        11.5%        22,204        173        -13.5%        -1.5%     

686

  

488

     546   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

 

  
                         

Visa Inc.

     3,265        7.0%        11.3%        3,039        8.4%        12.1%        37,092        226        -8.9%        1.5%     

750

  

730

     864   

Visa Debit Programs

                          

US

   $ 1,726        6.5%        6.5%      $ 1,293        7.1%        7.1%        34,450      $ 434        4.7%        4.7%     

3,634

  

379

     471   

International

     2,385        0.2%        10.7%        487        7.1%        17.0%        12,631        1,898        -1.4%        9.1%     

12,118

  

1,010

     1,084   
 

 

 

        

 

 

        

 

 

    

 

 

        

 

  

 

  

 

 

  
                         

Visa Inc.

     4,112        2.7%        8.7%        1,780        7.1%        9.3%        47,081        2,332        -0.4%        8.2%     

15,753

  

1,389

     1,555   

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

     

Mar 31, 2016

      0 %      5 % 

Dec 31, 2015

      -4 %      4 % 

Sep 30, 2015

      -4 %      5 % 

Jun 30, 2015

      0 %      8 % 

Mar 31, 2015

      2 %      8 % 

12 Months Ended

     

Mar 31, 2016

      -2 %      5 % 

Mar 31, 2015

      5 %      8 % 

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

      

Mar 31, 2016

      18,475         9 % 

Dec 31, 2015

      18,986         8 % 

Sep 30, 2015

      18,365         8 % 

Jun 30, 2015

      18,024         8 % 

Mar 31, 2015

      16,980         11 % 

12 Months Ended

      

Mar 31, 2016

      73,850         8 % 

Mar 31, 2015

      68,233         10 % 

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.