Visa 2014 Annual Report Download - page 60

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The following table sets forth the components of our total operating revenues.
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)
Service revenues ........ $ 5,797 $ 5,352 $ 4,872 $ 445 $ 480 8% 10%
Data processing
revenues ............... 5,167 4,642 3,975 525 667 11% 17%
International transaction
revenues ............... 3,560 3,389 3,025 171 364 5% 12%
Other revenues .......... 770 716 704 54 12 7% 2%
Client incentives ......... (2,592) (2,321) (2,155) (271) (166) 12% 8%
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.
•Service revenues increased in fiscal 2014 and 2013 primarily due to 9% and 8% growth in
nominal payments volume, respectively.
•Data processing revenues increased in fiscal 2014 and 2013 due to overall growth in
processed transactions of 11% and 10%, respectively. Fiscal 2013 also benefited from the
full-year impact of pricing modifications that became effective in the third quarter of fiscal 2012
as part of our strategy to mitigate the impacts from the Dodd-Frank Act.
•International transaction revenues increased in fiscal 2014 and 2013 primarily reflecting 8%
and 10% growth in nominal cross-border payments volume, respectively. The fiscal 2014
growth in international transaction revenues was slower than the growth in nominal cross-
border payments volume for the comparable period mainly due to lower volatility in a broad
range of currencies.
•Other revenues increased in fiscal 2014 and 2013 due to an increase in license fees as well
as increases in optional service or product enhancements.
•Client incentives increased in fiscal 2014 and 2013, reflecting incentives incurred on long-term
client contracts that were initiated or renewed during fiscal 2014 and 2013, as well as overall
growth in global payments volume. The amount of client incentives we record in future periods
will vary based on changes in performance expectations, actual client performance,
amendments to existing contracts or the execution of new contracts. We expect incentives as
a percentage of gross revenues to be in the range of 17.5% to 18.5% for the full 2015 fiscal
year.
46