Visa 2012 Annual Report Download - page 41

Table of Contents
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 expense for property and equipment, as well as amortization of
purchased and internally developed software. Also included in this amount is amortization of finite-lived intangible assets primarily
obtained through acquisitions.
General and administrative primarily consists of facilities costs, foreign exchange gains and losses and other corporate
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 cases, advice of counsel to the extent appropriate and management's best estimate of incurred loss at the
balance sheet dates.
Other Income (Expense)
Interest income (expense) primarily includes accrued interest and penalties related to reserves for uncertain tax positions.
Investment income 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 investments.
Other non-operating income primarily relates to gains and losses earned on equity method investments and the change in the
fair value of the Visa Europe put option.
Visa Inc. Fiscal 2012, 2011 and 2010
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.
The increase in operating revenues primarily reflects continued growth in our underlying business drivers: nominal payments
volume, processed transactions and cross-border volume. Operating revenues also benefited from pricing modifications made on
various services. These benefits were partially offset by volume loss and increases to client incentives implemented in the U.S.
during fiscal 2012 as part of our strategy to mitigate the impacts of the Dodd-Frank Act. We expect low double-digit percentage
growth in our operating revenues for the full 2013 fiscal year.
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 currencies are
converted to U.S. dollars. There was no significant impact on the year-over-year growth for fiscal 2012 , 2011 and 2010 , as the
effect of exchange rate movements was substantially mitigated through our
39
Fiscal Year ended
September 30,
$ Change
% Change
(1)
2012
2011 2010
2012
vs.
2011
2011
vs.
2010
2012
vs.
2011
2011
vs.
2010
(in millions, except percentages)
U.S.
$
5,720
$
5,135
$
4,718
$
585
$
417
11
%
9
%
Rest of world
4,478
3,846
3,137
632
709
16
%
23
%
Visa Europe
223
207
210
16
(3
)
7
%
(1
)%
Total Operating Revenues
$
10,421
$
9,188
$
8,065
$
1,233
$
1,123
13
%
14
%
(1)
Figures in the table may not recalculate exactly due to rounding. Percentage changes are calculated based on whole numbers,
not the rounded numbers presented.