Visa 2011 Annual Report Download - page 47

Table of Contents
Other non-operating income primarily relates to the change in the fair value of the Visa Europe put option.
Visa Inc. Fiscal 2011, 2010 and 2009
Operating Revenues
The following table sets forth our operating revenues earned in the United States, in the rest of the world and from Visa Europe. Revenues earned from
Visa Europe are a result of our contractual arrangement with Visa Europe, as governed by the Framework Agreement that provides for trademark and
technology licenses and bilateral services. See Note 2—Visa Europe to our consolidated financial statements.
Fiscal Year ended
September 30, $ Change % Change(1)
2011 2010 2009
2011
vs.
2010
2010
vs.
2009
2011
vs.
2010
2010
vs.
2009
(in millions, except percentages)
U.S. $ 5,135 $ 4,718 $ 4,023 $ 417 $ 695 9% 17%
Rest of world 3,846 3,137 2,669 709 468 23% 18%
Visa Europe 207 210 219 (3) (9) (1)% (4)%
Total Operating Revenues $ 9,188 $ 8,065 $ 6,911 $ 1,123 $ 1,154 14% 17%
(1) Percentage change calculated based on whole numbers, not rounded numbers.
The increase in operating revenues primarily reflects continued double digit growth in our underlying business drivers: nominal payments volume,
processed transactions and cross-border payments volume. Operating revenues also benefited from pricing modifications made on various services, as well as
the inclusion of activity from newly acquired entities. The benefits of pricing modifications are partially offset by increases to client incentives as part of our
strategy to mitigate the impacts of the Reform Act. The new U.S. debit regulations will likely moderate the pace of our operating revenue growth in the U.S.,
primarily within service and data processing revenues, through fiscal 2012. We expect operating revenue to grow in the high single to low double digit range
for the full 2012 fiscal year. We further expect that the pace of our U.S. revenue growth will begin regaining momentum in fiscal 2013.
Our operating revenues, primarily service revenues and international transaction revenues, are impacted by the overall strengthening or weakening of
the U.S. dollar as payments volume and related revenues denominated in local or regional currencies are converted to U.S. dollars. The general weakening of
the U.S. dollar during fiscal 2011 and fiscal 2010 was moderated by our hedging activities, resulting in a net 2% and 1% increase, respectively, in total
operating revenues compared to the same prior year periods. In comparison, the general strengthening of the U.S. dollar during fiscal 2009, net against the
impact from our hedging activities, resulted in a 3% decline in total operating revenues. We do not expect a significant impact from currency fluctuations
during the 2012 fiscal year, as the effect of exchange rate movements is minimized through our hedging program.
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