Visa Inc. Reports Fiscal First Quarter 2018 Results
San Francisco, CA, February 1, 2018 - Visa Inc. (NYSE: V)
Alfred F. Kelly, Jr., Chief Executive Officer, Visa
Inc., commented on the results:
“We are off to a solid start in our first fiscal
quarter of 2018 as we saw healthy growth in all
key business drivers across the globe. In
particular, momentum accelerated in the U.S.
driven by strong holiday spending and e-
commerce growth,” said Alfred F. Kelly, Jr.,
Chief Executive Officer of Visa Inc. “Given the
recent benefits from the Tax Cut and Jobs Act,
we are evaluating ways to further invest in our
business, our people and our communities to
digitize payments and contribute to overall
economic growth.”
Q1 2018 Results
(Ending December 31, 2017)
*in billions, except percentages and per share data
USD
($)
Change
(YoY)
Net Operating Revenue $4.86 9%
GAAP Net Income $2.52 22%
Adjusted Net Income $2.54 23%
GAAP Earnings Per Share $1.07 25%
Adjusted Earnings Per Share $1.08 26%
• GAAP net income of $2.52B or $1.07 per share and adjusted net income of $2.54B or $1.08 per share
• Net operating revenue $4.86B, an increase of 9%
• GAAP effective tax rate of 22.1% and adjusted effective tax rate of 21.7%, both including a
6 percentage point reduction resulting from U.S. tax reform
• Returned $2.2B of capital to shareholders in the form of share repurchases and dividends
• The Board of Directors authorized a new $7.5 billion share repurchase program and increased the
Company’s quarterly cash dividend to $0.21 per share
• Performance driven by continued strength in payments volume, cross-border volume and processed
transactions
Q1 2018 Key Business Drivers
(Volume in constant dollars)
Payments volume
+10%
Cross-border volume
+9%
Processed transactions
+12%
1
Exhibit 99.1
2
Fiscal First Quarter 2018 — Financial Highlights
GAAP net income in the fiscal first quarter was $2.52 billion or $1.07 per share, an increase of 22% and 25%, respectively, over
prior year's results. Excluding two special items in this quarter's results related to U.S. tax reform, adjusted net income for the
quarter was $2.54 billion or $1.08 per share, an increase of 23% and 26%, respectively, over prior year's results. Exchange rate
shifts versus the prior year positively impacted earnings per share growth by approximately 1 percentage point. All references to
earnings per share assume fully-diluted class A share count, inclusive of series B and C convertible participating preferred stock,
unless otherwise noted. The Company’s adjusted effective tax rate, net income and earnings per share of class A common stock
are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measure in the accompanying
financial tables.
GAAP effective income tax rate, which included two non-recurring special items related to U.S. tax reform, was 22.1% for the
quarter ended December 31, 2017. The two special items are:
• Estimated benefit of $1.13 billion related to the remeasurement of net deferred tax liabilities based on the new corporate
tax rate; and
• Estimated charge of $1.15 billion related to a transition tax on certain foreign earnings; in transitioning to the new
territorial tax system, the Tax Cut and Jobs Act requires a transition tax on previously untaxed deferred foreign earnings,
payable over eight years.
Excluding these special items, the adjusted effective tax rate was 21.7%. Both GAAP and adjusted effective tax rates are 6
percentage points lower than they would have been, as a result of recurring tax reform benefits associated with the lower
corporate tax rate.
Net operating revenues in the fiscal first quarter were $4.9 billion, an increase of 9%, driven by continued growth in payments
volume, cross-border volume and processed transactions. Exchange rate shifts versus the prior year positively impacted reported
net operating revenue growth by approximately 1 percentage point.
Payments volume for the three months ended September 30, 2017, on which fiscal first quarter service revenue is recognized,
grew 10% over the prior year on a constant dollar basis. As a reminder, Europe co-badged volume is no longer included in
reported volume.
Payments volume for the three months ended December 31, 2017, grew 10% over the prior year on a constant dollar basis.
Cross-border volume growth, on a constant dollar basis, was 9% for the three months ended December 31, 2017.
Total processed transactions, which represent transactions processed by Visa, for the three months ended December 31, 2017,
were 30.5 billion, a 12% increase over the prior year.
Fiscal first quarter service revenues were $2.1 billion, an increase of 12% 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 13% over the prior year to $2.1 billion. International transaction revenues grew 12% over the prior year
to $1.7 billion. Other revenues of $229 million rose 13% over the prior year. Client incentives, which are a contra revenue item,
were $1.3 billion and represent 21.4% of gross revenues.
Operating expenses were $1.5 billion for the fiscal first quarter, a 13% increase over the prior year's results primarily from higher
personnel costs.
Cash, cash equivalents, and available-for-sale investment securities were $14.1 billion at December 31, 2017.
The weighted-average number of diluted shares of class A common stock outstanding was 2.35 billion for the quarter ended
December 31, 2017.
3
Fiscal First Quarter 2018 — Other Notable Items
During the three months ended December 31, 2017, the Company repurchased 15.5 million shares of class A common stock, at
an average price of $110.67 per share, using $1.7 billion of cash on hand. The board of directors has authorized a new $7.5 billion
class A common stock share repurchase program. Including this additional authorization, the Company now has $9.1 billion of
funds available for share repurchase.
In October 2017, the Company used the majority of the proceeds from its September 2017 debt offering to redeem the $1.75
billion of senior notes which was scheduled to mature in December 2017.
On January 30, 2018, the board of directors increased the quarterly cash dividend to $0.21 per share of class A common stock
(determined in the case of class B and C common stock and series B and C convertible participating preferred stock on an as-
converted basis) payable on March 6, 2018, to all holders of record as of February 16, 2018.
Financial Outlook for Fiscal Full-Year 2018
Visa Inc. reaffirms its financial outlook for the following metrics for fiscal full-year 2018:
• Annual net revenue growth of high single digits on a nominal dollar basis, with approximately 0.5 to 1 percentage point
of positive foreign currency impact;
• Client incentives as a percentage of gross revenues: 21.5% to 22.5% range;
• Annual operating margin: High 60s;
Visa Inc. updates its financial outlook for the following metrics for fiscal full-year 2018:
• Annual operating expense growth: High end of mid-single digits adjusted for special items in fiscal 2017 (see note
below);
• GAAP and adjusted effective tax rate: Approximately 23%, which includes a 6 percentage point reduction resulting from
U.S. tax reform; and
• Annual diluted class A common stock earnings per share growth including the impact of U.S. tax reform: Mid-50's on a
GAAP nominal dollar basis and high end of mid-20's on an adjusted, non-GAAP nominal dollar basis (see note below).
Both include approximately 9 to 10 percentage points driven by U.S. tax reform and approximately 1 to 1.5 percentage
points of positive foreign currency impact.
Note: The financial outlook for fiscal full-year 2018 includes Visa Europe integration expenses of approximately $60 million for the
full-year. Annual operating expense growth is derived from adjusted full-year 2017 operating expenses of $6.0 billion. Annual
adjusted diluted class A common stock earnings per share growth is derived from adjusted full-year 2017 earnings per share results
of $3.48. Refer to the accompanying financial tables for further details and a reconciliation of the adjusted fiscal full-year 2017
results.
Fiscal First Quarter 2018 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.
4
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most
innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our
advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of
handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for
the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for
everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network
and scale to reshape the future of commerce. For more information, visit usa.visa.com/aboutvisa,
visacorporate.tumblr.com and @VisaNews.
Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act
of 1995 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and
financial outlook for fiscal full-year 2018. Forward-looking statements generally are identified by words such as “believes,”
“estimates,” “expects,” “intends,” “may,” “projects,” “outlook,” “could,” “should,” “will,” “continue” and other similar expressions. All
statements other than statements of historical fact could be forward- looking statements, which speak only as of the date they
are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of
which are beyond our control and are difficult to predict.
Actual results could differ materially from those expressed in, or implied by, our forward-looking statements due to a variety of
factors, including, but not limited to:
• increased oversight and regulation of the global payments industry and our business;
• impact of government-imposed restrictions on payment systems;
• outcome of tax, litigation and governmental investigation matters;
• increasingly intense competition in the payments industry, including competition for our clients and merchants;
• proliferation and continuous evolution of new technologies and business models;
• our ability to maintain relationships with our clients, merchants and other third parties;
• brand or reputational damage;
• management changes;
• impact of global economic, political, market and social events or conditions;
• exposure to loss or illiquidity due to settlement guarantees;
• uncertainty surrounding the impact of the United Kingdom’s withdrawal from the European Union;
• cyber security attacks, breaches or failure of our networks;
• failure to maintain interoperability with Visa Europe’s systems and to migrate European activity onto VisaNet successfully;
• our ability to successfully integrate and manage our acquisitions and other strategic investments; and
• other factors 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, 2017, and our subsequent reports on Forms 10-Q and 8-K.
Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information,
future events or otherwise.
Contacts Investor Relations Patrick Laney, 650-432-7644,
ir@visa.com
Media Relations
Nathaniel Sillin, 415-805-4892,
globalmedia@visa.com
5
VISA INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31,
2017
September 30,
2017
(in millions, except par value data)
Assets
Cash and cash equivalents ...................................................................................................................... $ 8,138 $ 9,874
Restricted cash—U.S. litigation escrow .................................................................................................... 883 1,031
Investment securities:
Trading ............................................................................................................................................. 106 82
Available-for-sale ............................................................................................................................. 3,307 3,482
Settlement receivable ............................................................................................................................... 1,618 1,422
Accounts receivable ................................................................................................................................. 1,281 1,132
Customer collateral .................................................................................................................................. 1,155 1,106
Current portion of client incentives ........................................................................................................... 295 344
Prepaid expenses and other current assets ............................................................................................. 504 550
Total current assets .................................................................................................................. 17,287 19,023
Investment securities, available-for-sale .................................................................................................. 2,674 1,926
Client incentives ....................................................................................................................................... 557 591
Property, equipment and technology, net ................................................................................................. 2,238 2,253
Other assets ............................................................................................................................................. 1,127 1,226
Intangible assets, net ............................................................................................................................... 28,109 27,848
Goodwill ................................................................................................................................................... 15,162 15,110
Total assets .............................................................................................................................. $ 67,154 $ 67,977
Liabilities
Accounts payable ..................................................................................................................................... $ 108 $ 179
Settlement payable .................................................................................................................................. 2,302 2,003
Customer collateral .................................................................................................................................. 1,155 1,106
Accrued compensation and benefits ........................................................................................................ 389 757
Client incentives ....................................................................................................................................... 2,355 2,089
Accrued liabilities ..................................................................................................................................... 1,224 1,129
Current maturities of long-term debt ......................................................................................................... — 1,749
Accrued litigation ...................................................................................................................................... 830 982
Total current liabilities ............................................................................................................... 8,363 9,994
Long-term debt ......................................................................................................................................... 16,621 16,618
Deferred tax liabilities ............................................................................................................................... 5,107 5,980
Deferred purchase consideration ............................................................................................................. 1,330 1,304
Other liabilities .......................................................................................................................................... 2,332 1,321
Total liabilities ........................................................................................................................... 33,753 35,217
Equity
Preferred stock, $0.0001 par value, 25 shares authorized and 5 shares issued and outstanding as
follows:
Series A convertible participating preferred stock, none issued ........................................................ — —
Series B convertible participating preferred stock, 2 shares issued and outstanding at December
31, 2017 and September 30, 2017 (the “UK&I preferred stock”) .................................................. 2,295 2,326
Series C convertible participating preferred stock, 3 shares issued and outstanding at December
31, 2017 and September 30, 2017 (the “Europe preferred stock”) ............................................... 3,181 3,200
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,805 and 1,818 shares
issued and outstanding at December 31, 2017 and September 30, 2017, respectively ....................... — —
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding
at December 31, 2017 and September 30, 2017 .................................................................................. — —
Class C common stock, $0.0001 par value, 1,097 shares authorized, 12 and 13 shares issued and
outstanding at December 31, 2017 and September 30, 2017, respectively ......................................... — —
Right to recover for covered losses .......................................................................................................... (5) (52)
Additional paid-in capital .......................................................................................................................... 16,761 16,900
Accumulated income ................................................................................................................................ 9,966 9,508
Accumulated other comprehensive income (loss), net:
Investment securities, available-for-sale .......................................................................................... 61 73
Defined benefit pension and other postretirement plans .................................................................. (76) (76)
Derivative instruments classified as cash flow hedges ..................................................................... (33) (36)
Foreign currency translation adjustments ......................................................................................... 1,251 917
Total accumulated other comprehensive income, net ............................................................... 1,203 878
Total equity ............................................................................................................................... 33,401 32,760
Total liabilities and equity .......................................................................................................... $ 67,154 $ 67,977
6
VISA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
December 31,
2017 2016
(in millions, except per share data)
Operating Revenues
Service revenues ..................................................................................................................................... $ 2,146 $ 1,918
Data processing revenues ........................................................................................................................ 2,147 1,892
International transaction revenues ........................................................................................................... 1,666 1,489
Other revenues ........................................................................................................................................ 229 203
Client incentives ....................................................................................................................................... (1,326) (1,041)
Net operating revenues ......................................................................................................................... 4,862 4,461
Operating Expenses
Personnel ................................................................................................................................................. 679 571
Marketing ................................................................................................................................................. 223 218
Network and processing ........................................................................................................................... 160 145
Professional fees ...................................................................................................................................... 92 80
Depreciation and amortization .................................................................................................................. 145 146
General and administrative ...................................................................................................................... 236 186
Litigation provision ................................................................................................................................... — 15
Total operating expenses ...................................................................................................................... 1,535 1,361
Operating income ................................................................................................................................... 3,327 3,100
Non-operating Income (Expense)
Interest expense ....................................................................................................................................... (154) (140)
Other ........................................................................................................................................................ 66 19
Total non-operating expense ................................................................................................................. (88) (121)
Income before income taxes .................................................................................................................... 3,239 2,979
Income tax provision ................................................................................................................................ 717 909
Net income .............................................................................................................................................. $ 2,522 $ 2,070
Basic earnings per share
Class A common stock ..................................................................................................................... $ 1.07 $ 0.86
Class B common stock ..................................................................................................................... $ 1.77 $ 1.41
Class C common stock .................................................................................................................... $ 4.30 $ 3.43
Basic weighted-average shares outstanding
Class A common stock ..................................................................................................................... 1,811 1,860
Class B common stock ..................................................................................................................... 245 245
Class C common stock .................................................................................................................... 13 17
Diluted earnings per share
Class A common stock ..................................................................................................................... $ 1.07 $ 0.86
Class B common stock ..................................................................................................................... $ 1.77 $ 1.41
Class C common stock .................................................................................................................... $ 4.29 $ 3.42
Diluted weighted-average shares outstanding
Class A common stock ..................................................................................................................... 2,353 2,421
Class B common stock ..................................................................................................................... 245 245
Class C common stock .................................................................................................................... 13 17
7
VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
December 31,
2017 2016
(in millions)
Operating Activities
Net income ............................................................................................................................................... $ 2,522 $ 2,070
Adjustments to reconcile net income to net cash provided by operating activities:
Client incentives ............................................................................................................................... 1,326 1,041
Share-based compensation ............................................................................................................. 68 45
Depreciation and amortization of property, equipment, technology and intangible assets ................ 145 146
Deferred income taxes ..................................................................................................................... (919) 77
Right to recover for covered losses recorded in equity ..................................................................... (3) (94)
Other ................................................................................................................................................ (23) 13
Change in operating assets and liabilities:
Settlement receivable ....................................................................................................................... (180) 56
Accounts receivable ......................................................................................................................... (146) (89)
Client incentives ............................................................................................................................... (986) (1,129)
Other assets ..................................................................................................................................... 92 66
Accounts payable ............................................................................................................................. (51) (102)
Settlement payable .......................................................................................................................... 275 79
Accrued and other liabilities ............................................................................................................. 794 316
Accrued litigation .............................................................................................................................. (152) 13
Net cash provided by operating activities ................................................................................................. 2,762 2,508
Investing Activities
Purchases of property, equipment, technology and intangible assets ...................................................... (141) (171)
Investment securities, available-for-sale:
Purchases ........................................................................................................................................ (1,636) (1,032)
Proceeds from maturities and sales ................................................................................................. 1,076 788
Purchases of / contributions to other investments .................................................................................... (6) (2)
Net cash used in investing activities ......................................................................................................... (707) (417)
Financing Activities
Repurchase of class A common stock ...................................................................................................... (1,778) (1,893)
Repayments of long-term debt ................................................................................................................. (1,750) —
Dividends paid .......................................................................................................................................... (458) (399)
Proceeds from issuance of commercial paper ......................................................................................... — 566
Payments from litigation escrow account—U.S. retrospective responsibility plan .................................... 150 —
Cash proceeds from issuance of common stock under employee equity plans ....................................... 53 56
Restricted stock and performance-based shares settled in cash for taxes ............................................... (88) (60)
Net cash used in financing activities ......................................................................................................... (3,871) (1,730)
Effect of exchange rate changes on cash and cash equivalents .............................................................. 80 (156)
(Decrease) increase in cash and cash equivalents .................................................................................. (1,736) 205
Cash and cash equivalents at beginning of period ................................................................................... 9,874 5,619
Cash and cash equivalents at end of period ............................................................................................ $ 8,138 $ 5,824
Supplemental Disclosure
Income taxes paid, net of refunds ............................................................................................................ $ 183 $ 96
Interest payments on debt ........................................................................................................................ $ 241 $ 244
Accruals related to purchases of property, equipment, technology and intangible assets ........................ $ 26 $ 69
8
VISA INC.
FISCAL 2018 AND 2017 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
Fiscal 2018
Quarter Ended Fiscal 2017 Quarter Ended
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
(in millions)
Operating Revenues
Service revenues ........................................... $ 2,146 $ 2,116 $ 1,948 $ 1,993 $ 1,918
Data processing revenues ............................. 2,147 2,067 1,984 1,843 1,892
International transaction revenues ................. 1,666 1,792 1,571 1,469 1,489
Other revenues .............................................. 229 226 209 203 203
Client incentives ............................................. (1,326) (1,346) (1,147) (1,031) (1,041)
Net operating revenues ............................... 4,862 4,855 4,565 4,477 4,461
Operating Expenses
Personnel ....................................................... 679 655 698 704 571
Marketing ....................................................... 223 290 221 193 218
Network and processing ................................ 160 167 158 150 145
Professional fees ........................................... 92 144 102 83 80
Depreciation and amortization ....................... 145 147 132 131 146
General and administrative ............................ 236 238 230 406 186
Litigation provision ......................................... — 2 — 2 15
Total operating expenses ............................ 1,535 1,643 1,541 1,669 1,361
Operating income ........................................ 3,327 3,212 3,024 2,808 3,100
Non-operating Income (Expense)
Interest expense ............................................ (154) (148) (140) (135) (140)
Other .............................................................. 66 35 30 29 19
Total non-operating expense ...................... (88) (113) (110) (106) (121)
Income before income taxes .......................... 3,239 3,099 2,914 2,702 2,979
Income tax provision ...................................... 717 959 855 2,272 909
Net income ................................................... $ 2,522 $ 2,140 $ 2,059 $ 430 $ 2,070
9
VISA INC.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
FISCAL FIRST QUARTER 2018
(UNAUDITED)
Our financial results for the three months ended December 31, 2017 reflect the impact of certain significant items that we believe were not indicative
of our operating performance in these or future periods, as they were either non-recurring or had no cash impact. As such, we believe the presentation
of adjusted financial results excluding the following items provides a clearer understanding of our operating performance for the periods presented.
There were no comparable adjustments recorded for the three months ended December 31, 2016.
• Remeasurement of deferred tax balances. During the first quarter of fiscal 2018, in connection with the tax reform legislation commonly
referred to as the Tax Cuts and Jobs Act's reduction of the corporate income tax rate, we remeasured our net deferred tax liabilities as
of the enactment date, resulting in the recognition of a non-recurring, non-cash income tax benefit estimated to be approximately $1.1
billion.
• Transition tax on foreign earnings. During the first quarter of fiscal 2018, in connection with the Tax Cuts and Jobs Act's requirement that
we include certain untaxed foreign earnings of non-U.S. subsidiaries in our fiscal 2018 taxable income, we recorded a one-time transition
tax estimated to be approximately $1.1 billion.
Adjusted financial results 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 our as-reported financial measures calculated in accordance with U.S. GAAP, to our respective non-
GAAP adjusted financial measures for the three months ended December 31, 2017. There were no comparable adjustments recorded for the three
months ended December 31, 2016.
Three Months Ended December 31, 2017
(in millions, except percentages and per share data)
Income
Before
Income
Taxes
Income Tax
Provision
Effective
Income Tax
Rate(1) Net Income
Diluted
Earnings Per
Share(1)
As reported ..................................................................... $ 3,239 $ 717 22.1% $ 2,522 $ 1.07
Remeasurement of deferred tax balances ...................... — 1,133 (1,133) (0.48)
Transition tax on foreign earnings ................................... — (1,147) 1,147 0.49
As adjusted ..................................................................... $ 3,239 $ 703 21.7% $ 2,536 $ 1.08
(1) Figures in the table may not recalculate exactly due to rounding. Effective income tax rate, diluted earnings per share and their respective totals
are calculated based on unrounded numbers.
10
VISA INC.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
FISCAL FULL-YEAR 2017
(UNAUDITED)
Our fiscal full-year 2018 annual diluted class A common stock earnings per share growth outlook is based on adjusted non-GAAP fiscal full-year
2017 results, which are reconciled to their closest comparable U.S. GAAP financial measure below.
Our financial results during the twelve months ended September 30, 2017 reflect the impact of certain significant items that we do not believe are
indicative of our ongoing operating performance in these or future periods, as they are either non-recurring or have no cash impact. As such, we
believe the presentation of adjusted financial results excluding the following items provides a clearer understanding of our operating performance
for the period presented.
• Elimination of deferred tax balances. During the second quarter of fiscal 2017, in connection with our legal entity reorganization, we
eliminated deferred tax balances originally recognized upon the acquisition of Visa Europe, resulting in the recognition of a non-recurring,
non-cash income tax provision of $1.5 billion.
• Charitable contribution. During the second quarter of fiscal 2017, associated with our legal entity reorganization, we recognized a non-
recurring, non-cash general and administrative expense of $192 million, before tax, related to the charitable donation of Visa Inc. shares
that were acquired as part of the Visa Europe acquisition and held as treasury stock. Net of the related cash tax benefit of $71 million,
determined by applying applicable tax rates, adjusted net income increased by $121 million.
Adjusted financial results 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 our as-reported financial measures calculated in accordance with U.S. GAAP, to the respective non-
GAAP adjusted financial measures for the twelve months ended September 30, 2017.
Twelve Months Ended September 30, 2017
(in millions, except percentages and per
share data)
Operating
Expenses
Operating
Margin
(1),(2)
Income
Before
Income
Taxes
Income
Tax
Provision
Effective
Income
Tax Rate(1)
Net
Income
Diluted
Earnings
Per
Share(1)
As reported .................................................... $ 6,214 66% $ 11,694 $ 4,995 42.7% $ 6,699 $ 2.80
Elimination of deferred tax balances .............. — —% — (1,515) 1,515 0.63
Charitable contribution ................................... (192) 1% 192 71 121 0.05
As adjusted .................................................... $ 6,022 67% $ 11,886 $ 3,551 29.9% $ 8,335 $ 3.48
(1) Figures in the table may not recalculate exactly due to rounding. Operating margin, effective income tax rate, diluted earnings per share and
their respective totals are calculated based on unrounded numbers.
(2) Operating margin is calculated as operating income divided by net operating revenues.
11
Operational Performance Data
The tables below provide information regarding the available operational results for the 3 months ended December 31, 2017, as
well as the prior four quarterly reporting periods and the 12 months ended December 31, 2017 and 2016, for cards carrying the
Visa, Visa Electron, V PAY and Interlink brands. Sections 1-3 below reflect the acquisition of Visa Europe, with Europe included in
Visa Inc. results effective the 3 months ended September 30, 2016.
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, V PAY and Interlink brands and excludes Europe co-
badged volume and transactions for all periods. Card counts include PLUS proprietary cards. Nominal and constant dollar growth
rates over prior years are provided for volume-based data.
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 $586 8.3% 5.5% $465 10.5% 7.5% 6,334 $120 0.6% (1.7%) 908 3 4
Canada 73 16.4% 10.8% 68 16.7% 11.1% 893 5 12.3% 6.9% 11 - -
CEMEA 271 10.3% 6.8% 89 24.0% 19.3% 3,588 182 4.6% 1.6% 1,271 3 3
LAC 270 8.1% 7.1% 112 14.1% 14.1% 3,154 158 4.2% 2.7% 1,201 2 2
US 1,018 8.6% 8.6% 881 9.6% 9.6% 16,468 137 2.8% 2.8% 957 4 4
Europe 564 15.1% 7.4% 416 17.5% 9.3% 8,745 148 8.8% 2.4% 1,051 18 21
Visa Inc. 2,782 10.1% 7.4% 2,031 12.4% 9.7% 39,181 751 4.4% 1.7% 5,398 29 35
Visa Credit Programs
US $492 10.7% 10.7% $478 11.3% 11.3% 5,925 $13 (6.0%) (6.0%) 16 - -
International 730 12.2% 8.7% 676 12.6% 9.3% 9,340 54 7.1% 1.6% 223 938 1,080
Visa Inc. 1,222 11.6% 9.5% 1,155 12.1% 10.1% 15,265 67 4.2% 0.0% 239 938 1,080
Visa Debit Programs
US $526 6.7% 6.7% $402 7.6% 7.6% 10,543 $124 3.8% 3.8% 941 - -
International 1,033 10.1% 5.4% 474 17.6% 10.6% 13,373 560 4.5% 1.4% 4,218 1,931 2,170
Visa Inc. 1,560 8.9% 5.8% 876 12.8% 9.2% 23,916 684 4.4% 1.8% 5,158 1,931 2,170
For the 3 Months Ended December 31, 2017
Total
Volume
($ 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 $559 4.0% 4.1% $441 8.2% 9.0% 6,140 $117 (9.3%) (10.7%) 882 849 952
Canada 69 11.9% 7.1% 64 12.0% 7.2% 843 6 10.8% 6.1% 11 50 56
CEMEA 263 10.8% 7.6% 85 24.4% 19.7% 3,447 178 5.4% 2.6% 1,258 346 334
LAC 254 7.5% 6.9% 102 11.6% 12.0% 3,001 152 4.9% 3.7% 1,149 433 465
US 978 8.2% 8.2% 836 8.8% 8.8% 15,984 142 4.8% 4.8% 1,007 695 861
Europe 555 9.4% 8.1% 403 11.8% 10.2% 8,259 152 3.5% 2.9% 1,090 485 542
Visa Inc. 2,677 7.8% 7.1% 1,930 10.1% 9.7% 37,674 747 2.2% 0.9% 5,398 2,857 3,210
Visa Credit Programs
US $463 9.1% 9.1% $449 9.7% 9.7% 5,647 $14 (7.0%) (7.0%) 17 264 336
International 700 6.6% 6.5% 647 7.3% 7.5% 9,100 54 (1.2%) (3.6%) 230 663 736
Visa Inc. 1,163 7.6% 7.5% 1,095 8.3% 8.4% 14,747 68 (2.4%) (4.3%) 247 927 1,073
Visa Debit Programs
US $515 7.5% 7.5% $387 7.9% 7.9% 10,337 $128 6.3% 6.3% 991 431 525
International 999 8.3% 6.4% 448 17.2% 14.8% 12,590 551 1.9% 0.5% 4,160 1,499 1,612
Visa Inc. 1,514 8.0% 6.8% 835 12.7% 11.5% 22,927 679 2.7% 1.5% 5,151 1,930 2,137
For the 3 Months Ended September 30, 2017
12
Total
Volume
($ 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 $532 0.1% 1.9% $414 5.2% 7.6% 5,912 $118 (14.2%) (14.1%) 867 835 943
Canada 64 3.5% 7.6% 59 3.8% 7.9% 813 5 0.9% 4.9% 11 50 56
CEMEA 261 12.2% 7.6% 81 26.5% 19.6% 3,244 181 6.9% 3.0% 1,288 342 330
LAC 248 10.9% 8.1% 99 16.3% 13.4% 2,920 148 7.5% 4.9% 1,161 425 458
US 981 11.1% 11.1% 840 12.1% 12.1% 15,939 141 5.6% 5.6% 1,004 701 867
Europe 512 372 7,952 140 1,098 484 536
Visa Inc. 2,598 34.4% 34.1% 1,865 38.2% 38.8% 36,779 734 25.7% 23.7% 5,429 2,839 3,191
Visa Credit Programs
US $461 18.0% 18.0% $446 18.9% 18.9% 5,522 $14 (3.9%) (3.9%) 16 261 337
International 658 28.3% 30.4% 607 27.5% 29.8% 8,791 51 39.6% 38.1% 233 659 732
Visa Inc. 1,119 23.9% 25.0% 1,053 23.7% 24.9% 14,313 65 27.0% 26.1% 249 920 1,069
Visa Debit Programs
US $521 5.7% 5.7% $394 5.3% 5.3% 10,417 $127 6.8% 6.8% 987 440 530
International 959 78.6% 74.6% 418 238.3% 229.7% 12,049 542 30.9% 28.1% 4,192 1,479 1,592
Visa Inc. 1,480 43.7% 42.0% 811 63.1% 62.1% 22,466 669 25.5% 23.4% 5,180 1,919 2,122
For the 3 Months Ended June 30, 2017
Total
Volume
($ 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 $517 1.1% 2.2% $400 6.3% 7.6% 5,575 $117 (13.4%) (12.8%) 857 817 924
Canada 58 13.4% 9.0% 53 14.0% 9.6% 723 5 7.5% 3.3% 10 49 55
CEMEA 236 15.2% 6.9% 73 28.5% 16.7% 2,907 163 10.1% 3.0% 1,213 341 331
LAC 240 17.9% 11.3% 96 21.4% 13.5% 3,023 144 15.6% 9.9% 1,142 419 455
US 909 10.5% 10.5% 776 11.8% 11.8% 14,692 133 3.2% 3.2% 930 712 859
Europe 461 339 7,271 123 1,005 481 533
Visa Inc. 2,420 35.0% 33.2% 1,736 38.7% 37.7% 34,191 684 26.6% 22.9% 5,158 2,820 3,156
Visa Credit Programs
US $418 20.0% 20.0% $404 20.8% 20.8% 4,952 $14 0.6% 0.6% 16 274 334
International 622 31.0% 29.9% 575 29.1% 28.5% 8,376 48 59.5% 50.6% 222 651 726
Visa Inc. 1,041 26.3% 25.8% 979 25.6% 25.2% 13,328 62 40.4% 34.9% 238 925 1,060
Visa Debit Programs
US $491 3.5% 3.5% $372 3.5% 3.5% 9,740 $119 3.5% 3.5% 915 437 525
International 889 79.6% 72.4% 386 240.6% 222.4% 11,123 504 31.9% 27.2% 4,006 1,458 1,571
Visa Inc. 1,380 42.4% 39.4% 758 60.3% 58.1% 20,862 622 25.3% 21.9% 4,920 1,895 2,096
For the 3 Months Ended March 31, 2017
Total
Volume
($ 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 $541 3.2% 4.0% $421 8.8% 10.1% 5,737 $119 (12.6%) (12.9%) 920 802 908
Canada 63 5.7% 5.3% 58 5.7% 5.3% 779 5 5.5% 5.2% 10 49 56
CEMEA 246 7.8% 8.6% 72 19.8% 20.1% 2,823 174 3.5% 4.5% 1,302 334 322
LAC 250 5.5% 8.0% 98 9.5% 10.9% 3,155 152 3.1% 6.3% 1,215 418 453
US 938 11.4% 11.4% 804 12.7% 12.7% 15,349 134 4.5% 4.5% 936 718 862
Europe 490 354 7,653 136 1,086 476 531
Visa Inc. 2,527 33.7% 36.0% 1,807 38.5% 40.8% 35,496 719 23.1% 25.2% 5,469 2,798 3,133
Visa Credit Programs
US $444 19.6% 19.6% $430 20.4% 20.4% 5,350 $14 0.0% 0.0% 16 282 335
International 651 29.0% 30.8% 601 27.7% 29.5% 8,781 50 46.7% 49.0% 243 653 728
Visa Inc. 1,095 25.0% 26.1% 1,031 24.5% 25.6% 14,131 64 32.9% 34.9% 259 935 1,063
Visa Debit Programs
US $493 5.0% 5.0% $374 4.9% 4.9% 9,999 $119 5.1% 5.1% 920 437 527
International 938 72.7% 78.3% 403 232.8% 246.7% 11,367 536 26.8% 29.5% 4,291 1,426 1,543
Visa Inc. 1,432 41.3% 44.5% 777 62.7% 67.2% 21,365 655 22.2% 24.3% 5,210 1,863 2,070
For the 3 Months Ended December 31, 2016
13
(1) Europe payments volume growth, when including Europe in prior periods before the Visa Inc. acquisition, is 10% Constant USD and 7% Nominal USD
(2) Europe includes volumes and transactions effective with the 3 months ended September 30, 2016
Total
Volume
($ 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)
Accounts
(millions)
Cards
(millions)
All Visa Credit & Debit
Asia Pacific $2,193 3.4% 3.5% $1,720 7.6% 7.9% 23,960 $473 (9.4%) (10.1%) 3,515 3 4
Canada 264 11.2% 8.7% 243 11.5% 9.0% 3,271 21 7.8% 5.3% 43 - -
CEMEA 1,031 12.0% 7.2% 327 25.7% 18.9% 13,186 704 6.6% 2.5% 5,030 3 3
LAC 1,012 10.8% 8.3% 409 15.6% 13.2% 12,097 602 7.7% 5.1% 4,653 2 2
US 3,886 9.6% 9.6% 3,332 10.5% 10.5% 63,083 554 4.1% 4.1% 3,898 4 4
Europe (1) 2,092 1,529 32,226 563 4,244 1,468 1,632
Visa Inc. 10,478 19.9% 18.5% 7,562 22.7% 21.7% 147,825 2,916 13.3% 10.9% 21,383 1,480 1,645
Visa Credit Programs
US $1,833 14.1% 14.1% $1,777 14.8% 14.8% 22,047 $56 (4.1%) (4.1%) 65 - -
International 2,711 18.1% 17.2% 2,505 17.9% 17.3% 35,606 206 20.6% 16.3% 909 938 1,080
Visa Inc. 4,544 16.4% 15.9% 4,282 16.6% 16.2% 57,653 262 14.3% 11.2% 973 938 1,080
Visa Debit Programs
US $2,053 5.8% 5.8% $1,555 6.1% 6.1% 41,036 $497 5.1% 5.1% 3,833 - -
International 3,881 34.1% 30.0% 1,725 68.9% 62.0% 49,135 2,157 15.2% 12.3% 16,576 1,931 2,170
Visa Inc. 5,934 22.8% 20.5% 3,280 31.9% 29.6% 90,171 2,654 13.2% 10.9% 20,409 1,931 2,170
For the 12 Months Ended December 31, 2017
Total
Volume
($ 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 $2,120 4.0% 6.0% $1,599 9.0% 10.6% 20,869 $522 (8.8%) (5.9%) 3,948 802 908
Canada 238 2.0% 5.7% 218 1.8% 5.6% 2,942 19 3.3% 7.2% 45 49 56
CEMEA 921 1.3% 9.0% 260 10.5% 18.5% 10,006 660 (2.0%) 5.6% 4,960 334 322
LAC 913 (3.3%) 8.9% 354 (0.7%) 12.4% 11,810 559 (4.9%) 6.8% 4,584 418 453
US 3,547 10.1% 10.1% 3,015 10.9% 10.9% 58,573 532 5.7% 5.7% 3,798 718 862
Europe (2) 997 715 14,847 283 2,193 476 531
Visa Inc. 8,735 18.9% 23.0% 6,161 23.5% 26.2% 119,047 2,575 9.3% 16.0% 19,527 2,798 3,133
Visa Credit Programs
US $1,607 15.0% 15.0% $1,549 15.4% 15.4% 19,120 $59 6.3% 6.3% 68 282 335
International 2,295 17.7% 22.0% 2,124 17.5% 21.4% 30,184 171 20.9% 28.6% 821 653 728
Visa Inc. 3,903 16.6% 19.0% 3,673 16.6% 18.8% 49,303 229 16.8% 22.2% 888 935 1,063
Visa Debit Programs
US $1,939 6.4% 6.4% $1,466 6.6% 6.6% 39,453 $473 5.6% 5.6% 3,731 437 527
International 2,893 33.0% 43.9% 1,021 119.9% 137.5% 30,291 1,872 9.4% 18.1% 14,908 1,426 1,543
Visa Inc. 4,833 20.9% 26.3% 2,487 35.2% 38.8% 69,744 2,345 8.6% 15.4% 18,639 1,863 2,070
For the 12 Months Ended December 31, 2016
14
2. Cross-Border Volume
The table below represents cross-border volume growth for cards carrying the Visa, Visa Electron,V PAY, Interlink and PLUS
brands. Cross-border volume refers to payments and cash volume where the issuing country is different from the merchant
country.
(1) Europe is included as part of Visa Inc. effective with the 3 months ended September 30, 2016.
(2) Europe volumes and transactions were first included as part of Visa Inc. starting in the quarter ended September 30, 2016. Normalized
Growth includes Europe activity in prior year periods before Visa Inc. acquired Visa Europe.
3. Visa Processed Transactions
The table below represents transactions involving Visa, Visa Electron, V PAY, Interlink and PLUS cards processed on Visa’s
networks.
(1) Europe is included as part of Visa Inc. effective with the 3 months ended September 30, 2016.
(2) Europe volumes and transactions were first included as part of Visa Inc. starting in the quarter ended September 30, 2016. Normalized
Growth includes Europe activity in prior year periods before Visa Inc. acquired Visa Europe.
Period (1)
Growth
(Nominal
USD)
Growth
(Constant
USD)
Normalized
Growth (2)
(Constant USD)
3 Months Ended
Dec 31, 2017 14% 9% –
Sep 30, 2017 12% 10% –
Jun 30, 2017 142% 147% 11%
Mar 31, 2017 129% 132% 11%
Dec 31, 2016 135% 140% 12%
12 Months Ended
Dec 31, 2017 49% 47% 10%
Period (1)
Processed
Transactions
(millions) Growth
Normalized
Growth (2)
3 Months Ended
Dec 31, 2017 30,508 12% –
Sep 30, 2017 29,180 13% –
Jun 30, 2017 28,450 44% 13%
Mar 31, 2017 26,256 42% 12%
Dec 31, 2016 27,329 44% 13%
12 Months Ended
Dec 31, 2017 114,393 25% 12%
15
Footnote
Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron, V PAY
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 and 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.
Europe is reported and included in Visa Inc. results effective with the 3 months ended September 2016. Visa’s CEMEA region is
comprised of countries in Central Europe, the Middle East and Africa. 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, Europe 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.
Effective June 9, 2016, Article 8 of the EU Interchange Fee Regulation states that payment card networks cannot impose reporting
requirements or the obligation to pay fees on payment transactions where their payment brand is present but their network is
not used. Prior to this regulation, Visa collected a small service fee in a few countries, particularly France, on domestic payment
transactions where Visa cards are co-badged with a domestic network. Clients in Europe continued to report co-badged volume
through the quarter ended September 2016; however, Europe co-badged volume and transactions have been excluded from all
periods.
