Visa 2011 Annual Report Download - page 46

Table of Contents
International transaction revenues are generally driven by cross-border payments and cash volume and currency conversion activities. Cross-border
volumes involve transactions where the cardholder's issuer country is different from the merchant's country and includes both single and multi-currency
transactions.
Other revenues consist primarily of revenues earned from Visa Europe in connection with the Visa Europe Framework Agreement, fees from
cardholder services, licensing and certification and activities related to our recently acquired entities. Other revenues also include optional service or product
enhancements, such as extended cardholder protection and concierge services.
Client incentives represent contracts with clients and other business partners for various programs designed to build payments volume, increase product
acceptance and win merchant preference to route transactions over our network. These incentives are primarily accounted for as reductions to operating
revenues.
Operating Expenses
Personnel includes salaries, incentive compensation, stock-based compensation, fringe benefits and contractor expense.
Network and processing primarily represents expenses for the operation of our electronic payments network, including maintenance, equipment rental
and fees for other data processing services.
Marketing includes expenses associated with advertising and marketing campaigns, sponsorships and other related promotions to promote the Visa
brand.
Professional fees consist of fees for consulting, legal and other professional services.
Depreciation and amortization includes depreciation expenses of properties and equipment, as well as amortization of purchased and internally
developed software. Also included in this amount are depreciation and amortization of acquired in technology and other assets, including finite-lived
intangible assets, obtained in our July 2010 acquisition of CyberSource, March 2011 acquisition of PlaySpan and June 2011 acquisition of Fundamo.
General and administrative primarily consists of facilities costs, foreign exchange gains and losses and other corporate and overhead expenses in
support of our business.
Litigation provision is an estimate of litigation expense and is based on management's understanding of our litigation profile, the specifics of the case,
advice of counsel to the extent appropriate and management's best estimate of incurred loss at the balance sheet dates.
Other Income (Expense)
Interest expense primarily includes accretion associated with litigation settlements to be paid over periods longer than one year and interest incurred on
outstanding debt as well as interest and penalties related to uncertain tax positions.
Investment income, net represents returns on our fixed-income securities and other investments. Investment income also includes gains on the sale of
and cash dividends received from other cost method investments.
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