News Details

Visa Inc. Reports Fiscal Third Quarter 2016 Results and Announces a New $5.0 Billion Share Repurchase Program

07/21/2016
  • GAAP quarterly net income of $412 million or $0.17 per share including special items related to the acquisition of Visa Europe
  • Adjusted quarterly net income of $1.6 billion or $0.69 per share excluding special items related to the acquisition of Visa Europe
  • The Company authorized a new $5.0 billion share repurchase program

SAN FRANCISCO--(BUSINESS WIRE)-- Visa Inc. (NYSE:V) today announced financial results for the Company’s fiscal third quarter 2016, ended June 30, 2016. GAAP net income for the quarter, inclusive of special items related to the acquisition of Visa Europe, was $412 million, a decrease of 76% over the prior year’s results, or $0.17 per share, a decrease of 75% nominally over the prior year’s results, primarily due to the impact of the Visa Europe-related special items noted below.

The Company did not include Visa Europe’s financial results from June 21, 2016 through June 30, 2016, nor the dilutive impact of the outstanding shares of series B and C convertible participating preferred stock in the calculation of basic or diluted earnings per share as the effects were immaterial. The Company’s unaudited consolidated balance sheets and statements of cash flow reflect preliminary balances related to the acquisition of Visa Europe as of June 30, 2016, pending final valuation. All references to earnings per share assume fully-diluted class A share count, excluding the preferred stock, unless otherwise noted.

During the fiscal third quarter of 2016, the Company recorded the following special items which are non-recurring and have no impact on operating performance:

  • $1.9 billion Visa Europe Framework Agreement loss in operating expense related to the effective settlement of the Framework Agreement between Visa Inc. and Visa Europe upon consummation of the transaction;
  • $152 million in operating expense for acquisition-related costs including $60 million of transaction expenses recorded in professional fees and $92 million of U.K. stamp duty recorded in general and administrative expenses;
  • $145 million gain in other non-operating (expense) income related to euro-denominated bank balances associated with the upfront cash consideration for the acquisition of Visa Europe; and
  • $42 million loss in other non-operating (expense) income related to currency forward contracts entered into to mitigate a portion of the foreign currency exchange rate risk associated with the upfront cash consideration for the acquisition of Visa Europe.

Excluding these special items, adjusted net income for the quarter was $1.6 billion, a decrease of 10% over the prior year’s adjusted results. Adjusted earnings per share was $0.69, a decrease of 7% nominally or 4% in constant dollars over the prior year’s adjusted results. The prior year’s adjusted results were positively impacted by a $280 million tax benefit.

Net operating revenue in the fiscal third quarter of 2016 was $3.6 billion, an increase of 3% nominally or 6% 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.

“We continue to be pleased with our performance as we delivered consistent and predictable results. While little has changed in the global economic environment, and cross-border commerce continues to be challenged by a strong U.S. dollar, domestic consumer spend across the globe remains strong and resilient,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “Furthermore, we are delighted to have closed our purchase of Visa Europe and remain confident that operating as a unified global business will quickly bring meaningful value to our clients and the economies in Europe.“

“Reflective of our continued confidence in the business and our desire to offset dilution from the preferred stock issuance, we have repurchased $5.5 billion in common stock year-to-date and our board has increased our buyback authorization by $5.0 billion to $7.3 billion. This also delivers on our ongoing commitment to return excess cash to shareholders,” added Scharf.

“Looking ahead, we expect next quarter results to improve modestly, similar to first-half of the year results. As we look toward fiscal full-year 2017, our underlying business is strong, and with the lapping effect of several items, based on what we know today and assuming similar consumer spending patterns, we feel good about our ability to produce stronger revenue and earnings growth,” continued Scharf.

Fiscal Third Quarter 2016 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2016 on which fiscal third 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 June 30, 2016, was 10% over the prior year at $1.3 trillion.

Cross-border volume growth, on a constant dollar basis, was 5% for the three months ended June 30, 2016.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2016, were 19.8 billion, a 10% increase over the prior year.

Fiscal third quarter 2016 service revenues were $1.6 billion, an increase of 6% 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 4% over the prior year to $1.1 billion. Other revenues were $209 million, an increase of 5% over the prior year. Client incentives, which are a contra revenue item, were $839 million and represent 18.8% of gross revenues.

GAAP operating expenses were $3.2 billion, a 155% increase over the prior year, in the fiscal third quarter, including special items which are non-recurring. Adjusted operating expenses, which excludes special items, were $1.2 billion, a 7% decline over the prior year, primarily due to decreases in personnel and marketing expenses.

Summary Table of Adjustments to Earnings:

  Three Months Ended June 30, 2016
    Non-
operating
Operating Operating (Expense)
(in millions, except percentages) Expenses

Margin(1)

Income
As reported $3,202 12% ($6)
Acquisition-related costs (152) 4%
Visa Europe Framework Agreement loss (1,877) 52%

Net losses on currency forward contracts

—% 42
Foreign exchange gain on euro deposits —% (145)
As adjusted $1,173 68% ($109)
 

(1) Figures in the table may not recalculate exactly due to rounding. Operating margin is calculated based on unrounded numbers.

 

GAAP effective tax rate was 2.3% for the quarter ended June 30, 2016, including a one-time $693 million tax benefit related to the Visa Europe Framework Agreement loss. Excluding the tax impact from the special items, the adjusted effective income tax rate was 30.4% for the fiscal third quarter.

Summary Table of Adjustments to Effective Income Tax Rate:

  Three Months Ended
June 30, 2016
Income    
Before Effective
Income Income Tax Income Tax
Taxes Provision

Rate(1)

(in millions, except for percentages)
As reported $422 $10 2.3%
Acquisition-related costs 152 56
Visa Europe Framework Agreement loss 1,877 693

Net losses on currency forward contracts

42 8
Foreign exchange gain on euro deposits (145) (54)  
As adjusted $2,348 $713 30.4%
 

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

 

Cash, cash equivalents, and available-for-sale investment securities were $12.4 billion at June 30, 2016.

The weighted-average number of diluted shares of class A common stock outstanding was 2.4 billion for the quarter ended June 30, 2016.

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.

Notable Events:

On June 21, 2016, the Company acquired 100% of the share capital of Visa Europe. The acquisition positions Visa to create additional value through increased scale, efficiencies realized by the integration of both businesses, and benefits related to Visa Europe's transition from an association to a for-profit enterprise. At the closing of the transaction, the Company:

  • Paid up-front cash consideration of €12.2 billion ($13.9 billion);
  • Issued preferred stock of the Company convertible upon certain conditions into 78.7 million shares of class A common stock equivalent to a value of approximately €5.3 billion ($6.1 billion) at the closing stock price of $77.33 on June 21, 2016; and
  • Agreed to pay an additional €1.0 billion, plus 4% compound annual interest, on the third anniversary of the closing.

During the three months ended June 30, 2016, the Company repurchased 21.7 million shares of class A common stock, at an average price of $77.53 per share, using $1.7 billion of cash on hand. Fiscal year to date through June 30, 2016, the Company repurchased a total of 71.6 million shares of class A common stock, at an average price of $76.09 per share, using $5.5 billion of cash on hand.

The board of directors has authorized a new $5.0 billion class A common stock share repurchase program. The Company currently has $7.3 billion of funds, authorized by the board of directors, available for share repurchase.

On July 19, 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 and series B and C convertible participating preferred stock on an as-converted basis) payable on September 6, 2016, to all holders of record of the Company’s common and preferred stock as of August 19, 2016.

Financial Outlook for Fiscal Full-Year 2016:

Visa Inc. updates its financial outlook for the following metrics for fiscal full-year 2016 to include Visa Europe. In addition, Visa Inc. provides the impact from Visa Europe on net revenue growth and earnings per share for the fiscal fourth quarter 2016:

Financial Metric

 

U.S. GAAP

 

Adjusted*

   
Annual net revenue growth:

• 7% to 8% range on a constant dollar basis (excluding Europe)

• 7% to 8% range on a constant dollar basis (excluding Europe)

• About 3 ppts of negative foreign currency impact • About 3 ppts of negative foreign currency impact
• Incremental 3 to 4 ppts from Europe in fiscal full-year • Incremental 3 to 4 ppts from Europe in fiscal full-year
• Incremental 13 to 14 ppts from Europe in fiscal fourth quarter • Incremental 13 to 14 ppts from Europe in fiscal fourth quarter
         
Client incentives as % of gross revenues: • Around 18.5% • Around 18.5%
         

Annual operating margin:

• Low-to-mid 50s • Mid 60s
         

Effective tax rate:

• Mid 20s • About 30%
         

Annual diluted class A common stock earnings per share:

• Negative low single-digit constant dollar EPS growth

• Low double-digit constant dollar EPS growth
• About 4 ppts of negative foreign currency impact • About 4 ppts of negative foreign currency impact
• Europe net income offsets debt interest expense in fiscal fourth quarter • Europe net income offsets debt interest expense in fiscal fourth quarter
         
Annual adjusted free cash flow: • About $7 billion • About $7 billion
         
 

* Adjusted outlook on annual operating margin, effective tax rate and annual diluted class A common stock earnings per share excludes the impact of previously recorded non-recurring special items related to our acquisition of Visa Europe, outlined in our Q3 Non-GAAP financial results.

 

Fiscal Third 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 Inc.

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 with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

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

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 Europe and other 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:
    • uncertainty surrounding the Brexit, including the spillover to 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 loss of organizational effectiveness or key employees;
  • the failure to integrate acquisitions successfully, achieve the anticipated benefits of the acquisitions, or 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.

 
VISA INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
   

   June 30,   

September 30,
2016 2015
(in millions, except par value data)
Assets
Cash and cash equivalents $ 5,887 $ 3,518
Restricted cash—litigation escrow 1,027 1,072
Investment securities:
Trading 69 66
Available-for-sale 2,796 2,431
Settlement receivable 1,499 408
Accounts receivable 1,066 847
Customer collateral 1,032 1,023
Current portion of client incentives 291 303
Prepaid expenses and other current assets   707     353  
Total current assets 14,374 10,021
 
Investment securities, available-for-sale 3,762 3,384
Client incentives 537 110
Property, equipment and technology, net 2,136 1,888
Other assets 936 778
Intangible assets, net 27,078 11,361
Goodwill   15,044     11,825  
Total assets $ 63,867   $ 39,367  
 
 
Liabilities
Accounts payable $ 115 $ 127
Settlement payable 1,999 780
Customer collateral 1,032 1,023
Accrued compensation and benefits 511 503
Client incentives 1,953 1,049
Accrued liabilities 1,195 849
Accrued litigation   978     1,024  
Total current liabilities 7,783 5,355
 
Long-term debt 15,879
Deferred tax liabilities 4,977 3,273
Deferred purchase consideration 1,209
Other liabilities   1,192     897  
Total liabilities   31,040     9,525  
 
 
Equity

Preferred stock, $0.0001 par value, 25 shares authorized and 5 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 June 30, 2016 2,516
Series C convertible participating preferred stock, 3 shares issued and outstanding at June 30, 2016 3,201
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,891 and 1,950 shares issued and outstanding at June 30, 2016 and September 30, 2015, respectively
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2016 and September 30, 2015
Class C common stock, $0.0001 par value, 1,097 shares authorized, 17 and 20 shares issued and outstanding at June 30, 2016 and September 30, 2015, respectively
Treasury stock (170 )
Right to recover for covered losses (25 )
Additional paid-in capital 17,514 18,073
Accumulated income 10,334 11,843
Accumulated other comprehensive loss, net:
Investment securities, available-for-sale 30 5
Defined benefit pension and other postretirement plans (126 ) (161 )
Derivative instruments classified as cash flow hedges (42 ) 83
Foreign currency translation adjustments   (405 )   (1 )
Total accumulated other comprehensive loss, net   (543 )   (74 )
Total equity   32,827     29,842  
Total liabilities and equity $ 63,867   $ 39,367  
 
 
VISA INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
 
  Three Months Ended   Nine Months Ended
June 30, June 30,

2016(1)

  2015

2016(1)

  2015
(in millions, except per share data)
Operating Revenues
Service revenues $ 1,635 $ 1,550 $ 4,979 $ 4,665
Data processing revenues 1,541 1,400 4,493 4,123
International transaction revenues 1,084 1,039 3,160 2,973
Other revenues 209 199 605 607
Client incentives   (839 )   (670 )   (2,416 )   (2,059 )
Total operating revenues   3,630     3,518     10,821     10,309  
 
Operating Expenses
Personnel 509 566 1,536 1,558
Marketing 189 224 569 619
Network and processing 123 117 377 340
Professional fees 138 82 276 229
Depreciation and amortization 120 130 361 375
General and administrative 246 137 566 404
Litigation provision 1 3
Visa Europe Framework Agreement loss   1,877         1,877      
Total operating expenses   3,202     1,256     5,563     3,528  
Operating income   428     2,262     5,258     6,781  
 
Non-operating (Expense) Income
Interest expense (131 ) 8 (292 ) (2 )
Other   125     (102 )   536     (67 )
Total non-operating (expense) income   (6 )   (94 )   244     (69 )
Income before income taxes 422 2,168 5,502 6,712
Income tax provision   10     471     1,442     1,896  
Net income $ 412   $ 1,697   $ 4,060   $ 4,816  
 
Basic earnings per share
Class A common stock $ 0.17   $ 0.69   $ 1.69   $ 1.96  
Class B common stock $ 0.29   $ 1.14   $ 2.79   $ 3.23  
Class C common stock $ 0.69   $ 2.78   $ 6.76   $ 7.84  
 
Basic weighted-average shares outstanding
Class A common stock   1,899     1,955     1,915     1,964  
Class B common stock   245     245     245     245  
Class C common stock   18     20     19     21  
 
Diluted earnings per share
Class A common stock $ 0.17   $ 0.69   $ 1.69   $ 1.96  
Class B common stock $ 0.28   $ 1.14   $ 2.78   $ 3.22  
Class C common stock $ 0.69   $ 2.77   $ 6.75   $ 7.82  
 
Diluted weighted-average shares outstanding
Class A common stock   2,386     2,448     2,406     2,462  
Class B common stock   245     245     245     245  
Class C common stock   18     20     19     21  

(1)

 

We did not include Visa Europe's financial results in our unaudited consolidated statements of operations from the acquisition date, June 21, 2016, through June 30, 2016 as the impact is immaterial. The dilutive impact of the outstanding shares of series B and C convertible participating preferred stock from June 21, 2016 through June 30, 2016 was also not included in the calculation of basic or diluted earnings per share as the effect is immaterial.

 
 
VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
  Nine Months Ended
June 30,
2016   2015
(in millions, except noted otherwise)
Operating Activities
Net income $ 4,060 $ 4,816
Adjustments to reconcile net income to net cash provided by operating activities:
Client incentives 2,416 2,059
Fair value adjustment for the Visa Europe put option (255 ) 110
Share-based compensation 152 139
Excess tax benefit for share-based compensation (51 ) (78 )
Depreciation and amortization of property, equipment, technology and intangible assets 361 375
Deferred income taxes (603 ) 196
Litigation provision 1 3
Other 43 15
Change in operating assets and liabilities:
Settlement receivable 332 82
Accounts receivable (92 ) (64 )
Client incentives (2,638 ) (2,093 )
Other assets (552 ) (342 )
Accounts payable (35 ) (52 )
Settlement payable (368 ) (95 )
Accrued and other liabilities 398 141
Accrued litigation   (47 )   (362 )
Net cash provided by operating activities   3,122     4,850  
 
Investing Activities
Purchases of property, equipment, technology and intangible assets (382 ) (276 )
Proceeds from sales of property, equipment and technology 10
Investment securities, available-for-sale:
Purchases (26,883 ) (2,315 )
Proceeds from maturities and sales 26,193 1,410
Acquisitions, net of $2.8 billion cash received from Visa Europe (9,082 ) (93 )
Purchases of / contributions to other investments (9 ) (22 )
Proceeds / distributions from other investments   4     10  
Net cash used in investing activities   (10,159 )   (1,276 )
 
Financing Activities
Repurchase of class A common stock (5,300 ) (2,910 )
Treasury stock—class C common stock (170 )
Dividends paid (1,011 ) (885 )
Proceeds from issuance of senior notes 15,971
Debt issuance costs (98 )
Payments from litigation escrow account—U.S. retrospective responsibility plan 45 355
Cash proceeds from issuance of common stock under employee equity plans 69 68
Restricted stock and performance-based shares settled in cash for taxes (89 ) (105 )
Excess tax benefit for share-based compensation   51     78  
Net cash provided by (used in) financing activities   9,468     (3,399 )
Effect of exchange rate changes on cash and cash equivalents   (62 )   1  
Increase in cash and cash equivalents 2,369 176
Cash and cash equivalents at beginning of year   3,518     1,971  
Cash and cash equivalents at end of period $ 5,887   $ 2,147  
 
Supplemental Disclosure
Series B and C convertible participating preferred stock issued in Visa Europe acquisition $ 5,717 $
Deferred purchase consideration recorded for Visa Europe acquisition $ 1,236 $
Income taxes paid, net of refunds $ 2,043 $ 1,892
Interest payments on debt $ 244 $
Accruals related to purchases of property, equipment, technology and intangible assets $ 29 $ 67
 
 
VISA INC.
FISCAL 2016 AND 2015 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
         
Fiscal 2016 Quarter Ended Fiscal 2015 Quarter Ended

  June 30,  

  March 31,  

December 31,

September 30,

  June 30,  

2016(1)

2016 2015

2015

2015
(in millions)
Operating Revenues
Service revenues $ 1,635 $ 1,699 $ 1,645 $ 1,637 $ 1,550
Data processing revenues 1,541 1,473 1,479 1,429 1,400
International transaction revenues 1,084 1,045 1,031 1,091 1,039
Other revenues 209 198 198 216 199
Client incentives   (839 )   (789 )   (788 )   (802 )   (670 )
Total operating revenues   3,630     3,626     3,565     3,571     3,518  
 
Operating Expenses
Personnel 509 528 499 521 566
Marketing 189 186 194 253 224
Network and processing 123 126 128 134 117
Professional fees 138 66 72 107 82
Depreciation and amortization 120 121 120 119 130
General and administrative 246 164 156 143 137
Litigation provision 1 11
Visa Europe Framework Agreement loss   1,877                  
Total operating expenses   3,202     1,192     1,169     1,288     1,256  
Operating income   428     2,434     2,396     2,283     2,262  
 
Non-operating (Expense) Income
Interest expense (131 ) (132 ) (29 ) 8
Other   125     139     272         (102 )
Total non-operating (expense) income   (6 )   7     243         (94 )
Income before income taxes 422 2,441 2,639 2,283 2,168
Income tax provision   10     734     698     771     471  
Net income $ 412   $ 1,707   $ 1,941   $ 1,512   $ 1,697  

(1)

 

We did not include Visa Europe's financial results in our unaudited consolidated statements of operations from the acquisition date, June 21, 2016, through June 30, 2016 as the impact is immaterial.

 

VISA INC.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(UNAUDITED)

Our financial results during the three and nine months ended June 30, 2016 reflect the impact of significant items that we do not believe are indicative of our operating performance, 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, all of which are related to the acquisition of Visa Europe, provides a clearer understanding of our operating performance for the periods presented.

  • Acquisition-related costs. During the three months ended June 30, 2016, we incurred $152 million of non-recurring acquisition costs in operating expense as a result of the Visa Europe transaction. This amount is comprised of $60 million of transaction expenses recorded in professional fees, and $92 million of U.K. stamp duty recorded in general and administrative expenses. Net of related tax benefit of $56 million, determined by applying applicable federal and state tax rates, the adjustment to net income was an increase of $96 million.
  • Visa Europe Framework Agreement loss. Upon consummation of the transaction, on June 21, 2016, we recorded a non-recurring loss of $1.9 billion, before tax, in operating expense resulting from the effective settlement of the Framework Agreement between Visa and Visa Europe. Net of related tax benefit of $693 million, determined by applying applicable federal and state tax rates, the adjustment to net income was an increase of $1.2 billion.
  • Net (losses) gains on currency forward contracts. During the second and third quarter of fiscal 2016, we entered into currency forward contracts to mitigate a portion of the foreign currency exchange rate risk associated with the upfront cash consideration paid in the Visa Europe acquisition. As a result, we recorded non-recurring, net losses of $42 million and net gains of $74 million, before tax, in other non-operating income for the three and nine months ended June 30, 2016, respectively. Net of related tax benefit of $8 million and tax expense of $27 million for the three and nine months ended June 30, 2016, respectively, determined by applying applicable federal and state tax rates, the adjustment to net income was an increase of $34 million and a decrease of $47 million, respectively.
  • Foreign exchange gain on euro deposits. During the three months ended June 30, 2016, we recorded a non-recurring foreign exchange gain of $145 million, before tax, in other non-operating income resulting from holding euro-denominated bank balances for a short period in advance of the closing date of the Visa Europe transaction. Net of related tax expense of $54 million, determined by applying applicable federal and state tax rates, the impact to net income was a decrease of $91 million.
  • Revaluation of Visa Europe put option. During the first quarter of fiscal 2016 and the third quarter of fiscal 2015, we recorded a decrease of $255 million and an increase of $110 million, respectively, in the fair value of the Visa Europe put option, resulting in the recognition of non-cash income and expense in other non-operating income. These amounts are not subject to income tax and therefore have no impact on the reported income tax provision.

Adjusted operating expenses, operating margin, non-operating income, income before income taxes, income taxes, effective income tax rate, net income 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 tables reconcile the as-reported operating expenses, operating margin, non-operating income, income before income taxes, income taxes, effective income tax rates, net income 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 nine months ended June 30, 2016 and 2015:

 
Three Months Ended June 30, 2016(1)

(in millions, except percentages and per share data)

Operating
Expenses

 

Operating
Margin(2)

 

Non-
operating
(Expense)
Income

  Income
Before
Income Taxes
  Income Taxes  

Effective
Income Tax
Rate(2)

  Net Income  

Diluted
Earnings Per
Share(2)

As reported $ 3,202 12 % $ (6 ) $ 422 $ 10 2.3 % $ 412 $ 0.17
Acquisition-related costs (152 ) 4 % 152 56 96 0.04
Visa Europe Framework Agreement loss (1,877 ) 52 % 1,877 693 1,184 0.50

Net losses on currency forward contracts

% 42 42 8 34 0.01
Foreign exchange gain on euro deposits       %   (145 )   (145 )   (54 )     (91 )   (0.04 )
As adjusted $ 1,173     68 % $ (109 ) $ 2,348   $ 713     30.4 % $ 1,635   $ 0.69  
Diluted weighted-average shares outstanding, as reported 2,386
 

Nine Months Ended June 30, 2016(1)

(in millions, except percentages and per share data)

Operating
Expenses

Operating
Margin(2)

Non-
operating
(Expense)
Income
Income
Before
Income Taxes
Income Taxes

Effective
Income Tax
Rate(2)

Net Income

Diluted
Earnings Per
Share(2)

As reported $ 5,563 49 % $ 244 $ 5,502 $ 1,442 26.2 % $ 4,060 $ 1.69
Acquisition-related costs (152 ) 1 % 152 56 96 0.04
Visa Europe Framework Agreement loss (1,877 ) 17 % 1,877 693 1,184 0.49
Net gains on currency forward contracts % (74 ) (74 ) (27 ) (47 ) (0.02 )
Foreign exchange gain on euro deposits % (145 ) (145 ) (54 ) (91 ) (0.04 )
Revaluation of Visa Europe put option       %   (255 )   (255 )         (255 )   (0.11 )
As adjusted $ 3,534     67 % $ (230 ) $ 7,057   $ 2,110     29.9 % $ 4,947   $ 2.06  
Diluted weighted-average shares outstanding, as reported 2,406
 
Three Months Ended Nine Months Ended
June 30, 2015 June 30, 2015

(in millions, except per share data)

Non-
operating
(Expense)
Income

Net Income

Diluted
Earnings per
Share(2)

Non-
operating
(Expense)
Income
Net Income

Diluted
Earnings per
Share(2)

As reported $ (94 ) $ 1,697 $ 0.69 $ (69 ) $ 4,816 $ 1.96
Revaluation of Visa Europe put option   110     110     0.04     110     110     0.04  
As adjusted $ 16   $ 1,807   $ 0.74   $ 41   $ 4,926   $ 2.00  
Diluted weighted-average shares outstanding, as reported 2,448 2,462

(1)

 

We did not include Visa Europe's financial results in our unaudited consolidated statements of operations from the acquisition date, June 21, 2016, through June 30, 2016 as the impact is immaterial. The dilutive impact of the outstanding shares of series B and C convertible participating preferred stock from June 21, 2016 through June 30, 2016 was also not included in the calculation of diluted earnings per share as the effect is immaterial.

(2)

Figures in the table may not recalculate exactly due to rounding. Operating margin, effective income tax rate and diluted earnings per share figures are calculated based on unrounded numbers.

 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2016, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2016 and 2015, for cards carrying the Visa, Visa Electron and Interlink brands. Sections 1-3 below do not reflect our acquisition of Visa Europe in June 2016. Europe volume is provided in Section 4 below.

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 June 30, 2016
Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash
Volume (Nominal (Constant Volume (Nominal (Constant Transactions Volume (Nominal (Constant Transactions
($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)
 
All Visa Credit & Debit
Asia Pacific $ 531 4.2 % 7.3 % $ 393 7.9 % 10.2 % 5,042 $ 138 -5.0 % -0.4 % 1,013
Canada 62 0.2 % 6.1 % 57 0.0 % 5.9 % 737 5 1.7 % 7.7 % 11
CEMEA 233 -2.1 % 11.2 % 64 4.7 % 18.2 % 2,415 169 -4.5 % 8.8 % 1,255
LAC 223 -5.9 % 10.7 % 85 -3.8 % 13.8 % 2,866 138 -7.1 % 8.9 % 1,127

US

  883 9.1 % 9.1 %   749 9.6 % 9.6 % 14,725   134 6.4 % 6.4 % 967
Visa Inc. 1,932 4.1 % 8.9 % 1,347 7.5 % 10.2 % 25,784 584 -2.9 % 5.9 % 4,373
 
Visa Credit Programs
US $ 390 10.9 % 10.9 % $ 376 10.9 % 10.9 % 4,655 $ 15 10.9 % 10.9 % 17

International

  512 4.4 % 9.7 %   476 4.9 % 9.7 % 6,621   36 -2.3 % 8.5 % 159
Visa Inc. 902 7.1 % 10.2 % 851 7.5 % 10.2 % 11,276 51 1.2 % 9.2 % 176
 
Visa Debit Programs
US $ 493 7.7 % 7.7 % $ 373 8.3 % 8.3 % 10,070 $ 120 5.9 % 5.9 % 950

International

  536 -3.4 % 7.9 %   123 5.1 % 16.7 % 4,438   413 -5.6 % 5.6 % 3,248
Visa Inc. 1,029 1.6 % 7.8 % 496 7.5 % 10.3 % 14,509 533 -3.3 % 5.6 % 4,198
 
 
For the 3 Months Ended March 31, 2016
Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash    
Volume (Nominal (Constant Volume (Nominal (Constant Transactions Volume (Nominal (Constant Transactions Accounts Cards
($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)   (millions)   (millions)
 
All Visa Credit & Debit
Asia Pacific $ 511 3.2 % 8.9 % $ 376 9.6 % 14.4 % 4,745 $ 135 -11.1 % -3.8 % 1,017 753 856
Canada 51 -5.1 % 5.0 % 46 -5.3 % 4.7 % 659 5 -2.4 % 8.0 % 11 47 54
CEMEA 205 -3.4 % 8.4 % 57 4.8 % 17.2 % 2,185 148 -6.2 % 5.3 % 1,161 330 321
LAC 204 -16.2 % 9.0 % 79 -15.3 % 14.7 % 2,799 124 -16.7 % 5.7 % 1,076 417 451

US

  824 10.1 % 10.1 %   695 10.6 % 10.6 % 13,635   129 7.4 % 7.4 % 935 660 826
Visa Inc. 1,794 2.4 % 9.3 % 1,253 7.3 % 12.0 % 24,022 541 -7.3 % 3.4 % 4,201 2,207 2,508
 
Visa Credit Programs
US $ 349 10.5 % 10.5 % $ 335 10.6 % 10.6 % 4,068 $ 14 8.8 % 8.8 % 16 255 333

International

  475 2.5 % 11.9 %   445 3.8 % 13.1 % 6,263   30 -14.0 % -2.9 % 157 506 566
Visa Inc. 824 5.8 % 11.3 % 780 6.6 % 12.0 % 10,331 44 -7.7 % 0.6 % 173 761 899
 
Visa Debit Programs
US $ 475 9.8 % 9.8 % $ 360 10.7 % 10.7 % 9,566 $ 115 7.2 % 7.2 % 919 405 493

International

  495 -8.3 % 5.6 %   113 1.8 % 16.9 % 4,125   382 -10.9 % 2.7 % 3,109 1,040 1,116
Visa Inc. 970 -0.2 % 7.6 % 473 8.4 % 12.1 % 13,691 497 -7.3 % 3.7 % 4,028 1,446 1,609
 
 
For the 3 Months Ended December 31, 2015
Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash  

 

 

 

Volume (Nominal (Constant Volume (Nominal (Constant Transactions Volume (Nominal (Constant Transactions

Accounts

Cards

($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)  

(millions)

 

(millions)

 
All Visa Credit & Debit
Asia Pacific $ 524 2.5 % 10.4 % $ 387 7.8 % 15.6 % 4,900 $ 137 -10.0 % -2.1 % 1,003 745 840
Canada 59 -10.7 % 5.2 % 55 -10.9 % 4.9 % 723 4 -8.3 % 8.0 % 11 47 54
CEMEA 228 -13.5 % 6.1 % 60 -6.8 % 12.6 % 2,099 168 -15.7 % 4.0 % 1,236 336 326
LAC 237 -17.0 % 10.2 % 90 -17.5 % 14.0 % 2,918 147 -16.7 % 8.0 % 1,174 416 451

US

  842 9.1 % 9.1 %   714 9.7 % 9.7 % 13,975   128 5.8 % 5.8 % 936 648 820
Visa Inc. 1,890 -0.4 % 9.1 % 1,306 4.9 % 11.6 % 24,615 584 -10.6 % 3.9 % 4,360 2,192 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

  505 -1.2 % 12.3 %   470 0.7 % 13.7 % 6,506   34 -20.8 % -4.0 % 164 508 561
Visa Inc. 876 3.0 % 10.9 % 828 4.2 % 11.7 % 10,900 48 -14.0 % -0.8 % 181 763 896
 
Visa Debit Programs
US $ 470 9.0 % 9.0 % $ 356 10.1 % 10.1 % 9,582 $ 114 5.6 % 5.6 % 919 392 484

International

  543 -11.8 % 6.3 %   121 -4.1 % 15.2 % 4,134   422 -13.7 % 4.0 % 3,260 1,036 1,110
Visa Inc. 1,013 -3.2 % 7.5 % 478 6.2 % 11.4 % 13,715 536 -10.3 % 4.3 % 4,179 1,429 1,594
 
 
For the 3 Months Ended September 30, 2015
Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash    
Volume (Nominal (Constant Volume (Nominal (Constant Transactions Volume (Nominal (Constant Transactions Accounts Cards
($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)   (millions)   (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 % 6.6 % 1,195 333 321
LAC 227 -17.5 % 10.8 % 85 -18.1 % 13.5 % 2,706 142 -17.2 % 9.3 % 1,093 415 450

US

  822 8.7 % 8.7 %   693 9.7 % 9.7 % 13,656   129 3.9 % 3.9 % 958 630 802
Visa Inc. 1,849 -1.8 % 9.5 % 1,265 3.9 % 12.0 % 23,644 584 -12.3 % 4.7 % 4,286 2,159 2,458
 
Visa Credit Programs
US $ 359 9.8 % 9.8 % $ 345 10.1 % 10.1 % 4,221 $ 14 2.8 % 2.8 % 17 250 329

International

  491 -2.8 % 14.0 %   456 -0.4 % 15.5 % 6,214   35 -25.6 % -2.7 % 164 499 558
Visa Inc. 850 2.2 % 12.2 % 800 3.9 % 13.1 % 10,435 50 -19.1 % -1.2 % 181 749 887
 
Visa Debit Programs
US $ 463 7.9 % 7.9 % $ 349 9.2 % 9.2 % 9,435 $ 114 4.1 % 4.1 % 941 380 473

International

  536 -13.9 % 7.0 %   116 -9.0 % 12.5 % 3,774   420 -15.1 % 5.6 % 3,165 1,030 1,099
Visa Inc. 999 -5.0 % 7.4 % 464 4.0 % 10.0 % 13,209 535 -11.6 % 5.3 % 4,105 1,410 1,572
 
 
For the 3 Months Ended June 30, 2015
Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash    
Volume (Nominal (Constant Volume (Nominal (Constant Transactions Volume (Nominal (Constant Transactions Accounts Cards
($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)   (millions)   (millions)
 
All Visa Credit & Debit
Asia Pacific $ 510 4.3 % 10.8 % $ 364 7.9 % 15.0 % 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 % 7.8 % 61 -5.9 % 15.5 % 1,784 177 -16.2 % 5.4 % 1,195 332 321
LAC 237 -10.8 % 10.8 % 89 -11.9 % 11.7 % 2,598 148 -10.1 % 10.3 % 1,071 415 447

US

  810 8.0 % 8.0 %   683 8.8 % 8.8 % 13,267   126 3.8 % 3.8 % 951 628 798
Visa Inc. 1,855 0.6 % 9.0 % 1,254 5.3 % 10.9 % 22,723 602 -8.0 % 5.0 % 4,231 2,141 2,438
 
Visa Credit Programs
US $ 352 11.3 % 11.3 % $ 339 11.7 % 11.7 % 4,075 $ 13 3.5 % 3.5 % 16 246 323

International

  491 0.6 % 12.8 %   453 3.0 % 14.3 % 5,917   37 -21.6 % -3.5 % 160 496 554
Visa Inc. 843 4.8 % 12.2 % 792 6.6 % 13.1 % 9,992 51 -16.2 % -1.6 % 176 742 877
 
Visa Debit Programs
US $ 458 5.6 % 5.6 % $ 344 6.2 % 6.2 % 9,192 $ 113 3.8 % 3.8 % 935 382 476

International

  555 -8.5 % 7.2 %   117 -4.5 % 11.0 % 3,539   438 -9.6 % 6.2 % 3,120 1,017 1,085
Visa Inc. 1,013 -2.7 % 6.4 % 462 3.2 % 7.3 % 12,731 551 -7.1 % 5.7 % 4,055 1,399 1,561
 
 
For the 12 Months Ended June 30, 2016
Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash
Volume (Nominal (Constant Volume (Nominal (Constant Transactions Volume (Nominal (Constant Transactions
($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)
 
All Visa Credit & Debit
Asia Pacific $ 2,075 2.7 % 9.4 % $ 1,528 7.7 % 14.1 % 19,357 $ 548 -9.1 % -1.9 % 4,062
Canada 230 -7.1 % 5.4 % 212 -7.3 % 5.2 % 2,816 19 -5.2 % 7.4 % 46
CEMEA 897 -9.6 % 8.7 % 241 -2.3 % 16.2 % 8,614 656 -12.1 % 6.2 % 4,848
LAC 891 -14.4 % 10.2 % 339 -14.1 % 14.0 % 11,288 551 -14.6 % 8.0 % 4,470

US

  3,371 9.2 % 9.2 %   2,850 9.9 % 9.9 % 55,991   520 5.9 % 5.9 % 3,795
Visa Inc. 7,464 1.0 % 9.2 % 5,170 5.9 % 11.4 % 98,066 2,294 -8.4 % 4.5 % 17,220
 
Visa Credit Programs
US $ 1,470 10.1 % 10.1 % $ 1,412 10.2 % 10.2 % 17,337 $ 58 7.6 % 7.6 % 67

International

  1,983 0.7 % 11.9 %   1,847 2.2 % 12.9 % 25,604   136 -16.5 % -0.4 % 643
Visa Inc. 3,453 4.5 % 11.1 % 3,259 5.5 % 11.7 % 42,941 193 -10.5 % 1.9 % 710
 
Visa Debit Programs
US $ 1,901 8.6 % 8.6 % $ 1,438 9.5 % 9.5 % 38,653 $ 463 5.7 % 5.7 % 3,728

International

  2,111 -9.5 % 6.7 %   473 -1.8 % 15.3 % 16,471   1,638 -11.5 % 4.5 % 12,782
Visa Inc. 4,012 -1.8 % 7.6 % 1,911 6.5 % 10.9 % 55,125 2,101 -8.2 % 4.7 % 16,510
 
 
For the 12 Months Ended June 30, 2015
Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash    
Volume (Nominal (Constant Volume (Nominal (Constant Transactions Volume (Nominal (Constant Transactions Accounts Cards
($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)   (millions)   (millions)
 
All Visa Credit & Debit
Asia Pacific $ 2,021 4.9 % 9.1 % $ 1,419 7.6 % 12.4 % 16,673 $ 603 -0.8 % 2.0 % 3,922 725 822
Canada 248 -1.9 % 7.3 % 228 -2.1 % 7.1 % 2,603 20 0.4 % 9.9 % 47 42 49
CEMEA 992 -8.1 % 12.5 % 247 1.4 % 21.4 % 6,501 746 -10.8 % 9.8 % 4,692 332 321
LAC 1,041 -1.8 % 12.1 % 395 -1.5 % 12.9 % 10,291 646 -2.0 % 11.6 % 4,299 415 447

US

  3,086 8.7 % 8.7 %   2,594 9.5 % 9.5 % 50,382   491 4.8 % 4.8 % 3,707 628 798
Visa Inc. 7,389 3.2 % 9.6 % 4,883 7.0 % 10.9 % 86,451 2,505 -3.3 % 7.0 % 16,666 2,141 2,438
 
Visa Credit Programs
US $ 1,335 12.5 % 12.5 % $ 1,282 12.6 % 12.6 % 15,388 $ 54 9.1 % 9.1 % 65 246 323

International

  1,969 2.5 % 11.2 %   1,807 4.7 % 12.4 % 22,768   162 -17.3 % -2.1 % 663 496 554
Visa Inc. 3,305 6.3 % 11.7 % 3,089 7.8 % 12.5 % 38,157 216 -12.0 % 0.8 % 727 742 877
 
Visa Debit Programs
US $ 1,751 6.0 % 6.0 % $ 1,313 6.6 % 6.6 % 34,994 $ 438 4.3 % 4.3 % 3,642 382 476

International

  2,333 -2.6 % 9.7 %   482 2.4 % 14.2 % 13,301   1,852 -3.9 % 8.5 % 12,297 1,017 1,085
Visa Inc. 4,084 0.9 % 7.9 % 1,795 5.5 % 8.3 % 48,294 2,289 -2.4 % 7.6 % 15,939 1,399 1,561
 

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.

  Growth   Growth
(Nominal (Constant
Period   USD)   USD)
 

3 Months Ended

Jun 30, 2016 2 % 5 %
Mar 31, 2016 0 % 5 %
Dec 31, 2015 -4 % 4 %
Sep 30, 2015 -4 % 5 %
Jun 30, 2015 0 % 8 %

 

12 Months Ended

Jun 30, 2016 -1 % 5 %
Jun 30, 2015 4 % 9 %
 

3. Visa Processed Transactions

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

  Processed  
Transactions
Period   (millions)   Growth
 

3 Months Ended

Jun 30, 2016 19,778 10 %
Mar 31, 2016 18,475 9 %
Dec 31, 2015 18,986 8 %
Sep 30, 2015 18,365 8 %
Jun 30, 2015 18,024 8 %
 

12 Months Ended

Jun 30, 2016 75,603 9 %
Jun 30, 2015 69,595 10 %
 

4. Europe Branded Volume and Transactions – Supplement

The table below reflects Europe total volume, payments volume and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa and Visa Electron brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data. Results may not agree with previously published Visa Europe figures due to different exchange rates used for currency conversions.

Note: This is a one-time disclosure to provide Europe operational performance metrics. In subsequent quarters, Europe volume on a going forward basis will be incorporated into Sections 1-3 above.

  For the 3 Months Ended
Total   Growth   Growth   Payments   Growth   Growth   Payments   Cash   Growth   Growth   Cash    
Volume (Nominal (Constant Volume (Nominal (Constant Transactions Volume (Nominal (Constant Transactions Accounts Cards
($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)   (millions)   (millions)
June 30, 2016 $ 656 2.1 % 5.9 % $ 475 2.5 % 6.6 % 9,229 $ 181 0.9 % 4.1 % 1,442
March 31, 2016 $ 606 1.5 % 5.2 % $ 448 3.3 % 6.9 % 8,660 $ 158 -3.2 % 0.6 % 1,301 470 529
December 31, 2015 $ 656 -4.6 % 6.3 % $ 478 -2.3 % 8.1 % 9,149 $ 178 -10.3 % 1.8 % 1,437 462 527
September 30, 2015 $ 657 -8.5 % 5.6 % $ 474 -6.3 % 7.4 % 8,675 $ 183 -13.7 % 1.2 % 1,462 447 524
June 30, 2015 $ 642 -9.7 % 6.0 % $ 463 -7.6 % 7.8 % 8,340 $ 179 -14.8 % 1.7 % 1,456 446 518
 
For the 12 Months Ended
Total Growth Growth Payments Growth Growth Payments Cash Growth Growth Cash
Volume (Nominal (Constant Volume (Nominal (Constant Transactions Volume (Nominal (Constant Transactions
($ billions)   USD)   USD)   ($ billions)   USD)   USD)   (millions)   ($ billions)   USD)   USD)   (millions)
June 30, 2016 $ 2,575 -2.7 % 5.8 % $ 1,875 -0.9 % 7.3 % 35,713 $ 700 -7.1 % 2.0 % 5,642
 

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. 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.

Source: Visa Inc.

Visa Inc.

Investor Relations:

Jack Carsky or Victoria Hyde-Dunn, 650-432-7644

ir@visa.com

or

Media Relations:

Connie Kim, 212-521-3962

globalmedia@visa.com