Visa 2014 Annual Report Download - page 59

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Visa Inc. Fiscal 2014, 2013 and 2012
Operating Revenues
The following table sets forth our operating revenues earned in the United States, internationally
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)
2014 2013 2012
2014
vs.
2013
2013
vs.
2012
2014
vs.
2013
2013
vs.
2012
(in millions, except percentages)
United States .......... $ 6,847 $ 6,379 $ 5,720 $ 468 $ 659 7% 12%
International ........... 5,629 5,177 4,478 452 699 9% 16%
Visa Europe ........... 226 222 223 4 (1) 2% —%
Total operating
revenues ............. $12,702 $11,778 $10,421 $ 924 $ 1,357 8% 13%
(1) Figures in the table may not recalculate exactly due to rounding. Percentage changes are
calculated based on unrounded numbers.
The increase in operating revenues mainly reflects continued growth in our underlying business
drivers: nominal payments volume; processed transactions; and cross-border volume. These benefits
were partially offset by increases in client incentives. Overall revenue growth decreased in fiscal 2014
compared to prior year due to the negative impact of lower foreign currency exchange volatility on
international transaction revenues and the general strengthening of the U.S. dollar in fiscal 2014,
combined with the absence of pricing modifications that benefited 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 currencies are converted to U.S. dollars. The effect of exchange rate
movements in fiscal 2014, as partially mitigated by our hedging program, resulted in an overall decline
of about two percentage points in total operating revenue growth compared to fiscal 2013. While we
expect our hedging program to continue to mitigate this risk during fiscal 2015, a general strengthening
of the U.S. dollar is expected to reduce total operating revenue growth by about two percentage points
for fiscal 2015, net of offsetting hedges. See Note 12—Derivative Financial Instruments to our
consolidated financial statements.
45