Visa 2014 Annual Report Download - page 64

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Cash Flow Data
The following table summarizes our cash flow activity for the fiscal years presented:
2014 2013 2012
(in millions)
Total cash provided by (used in):
Operating activities .................................... $ 7,205 $ 3,022 $ 5,009
Investing activities ..................................... (941) (1,164) (2,414)
Financing activities .................................... (6,478) (1,746) (2,655)
Effect of exchange rate changes on cash and cash
equivalents ........................................... (1) —7
(Decrease) increase in cash and cash equivalents ............ $ (215) $ 112 $ (53)
Operating activities. Reported cash provided by operating activities in fiscal 2014 and 2013 was
significantly impacted by cash flows related to the interchange multidistrict litigation, including:
• the return of $1.1 billion in takedown payments in fiscal 2014 and related increase of $368
million in income taxes paid; and
• payments of $4.4 billion made in fiscal 2013 from the litigation escrow account and a related
decrease of $1.5 billion in overall income taxes paid.
The cash inflows and outflows related to the litigation escrow account are also reflected as
offsetting cash flows within financing activities for their respective years as they are covered by the
retrospective responsibility plan.
Absent the above impacts, cash provided by operating activities increased in both fiscal 2014 and
2013 to approximately $6.5 billion and $5.9 billion, respectively, reflecting growth in total operating
revenues in both years. See Note 3—Retrospective Responsibility Plan and Note 20—Legal Matters to
our consolidated financial statements. We believe that cash flow generated from operating activities
will be more than sufficient to meet our ongoing operational needs.
Investing activities. Cash used in investing activities was lower during fiscal 2014 compared to the
prior year, reflecting a decrease in purchases of available-for-sale investment securities, offset by a
decrease in proceeds received from maturities and sales of available-for-sale investment securities.
We also used cash on hand to acquire a business in which we previously held a minority interest
ownership. Cash used in investing activities was lower during fiscal 2013 compared to fiscal 2012,
reflecting a decrease in purchases of available-for-sale investment securities, combined with greater
proceeds received from maturities and sales of available-for-sale investment securities. See
Note 4—Fair Value Measurements and Investments to our consolidated financial statements.
Financing activities. Reported financing activities reflect significant cash flows in connection with
the interchange multidistrict litigation that offset the impacts discussed above under operating activities
as they are covered by the retrospective responsibility plan. Additionally, reported financing activities
include deposits into the litigation escrow account of $450 million and $1.7 billion in fiscal 2014 and
2012, respectively. Absent all of the above impacts, which are related to the interchange litigation, cash
used in financing activities was $5.0 billion, $6.1 billion and $940 million in fiscal 2014, 2013 and 2012,
respectively. The decrease in fiscal 2014 and increase in fiscal 2013 are primarily due to changes in
cash used to repurchase shares of our class A common stock in the open market. See
Note 3—Retrospective Responsibility Plan,Note 14—Stockholders’ Equity and Note 20—Legal
Matters to our consolidated financial statements.
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