Visa 2014 Annual Report Download - page 65

Sources of Liquidity
Our primary sources of liquidity are cash on hand, cash flow from our operations, our investment
portfolio and access to various equity and borrowing arrangements. Funds from operations are
maintained in cash and cash equivalents and short-term or long-term available-for-sale investment
securities based upon our funding requirements, access to liquidity from these holdings, and the return
that these holdings provide. We believe that cash flow generated from operations, in conjunction with
access to our other sources of liquidity, will be more than sufficient to meet our ongoing operational
needs.
Cash and cash equivalents and short-term and long-term available-for-sale investment securities
held by our foreign subsidiaries totaled $5.5 billion at September 30, 2014. If it were necessary to
repatriate these funds for use in the United States, we would be required to pay U.S. taxes on the
amount of undistributed earnings in those subsidiaries. It is our intent to indefinitely reinvest the
majority of these funds outside of the United States. As such, we have not accrued U.S. income tax
provision in our financial results related to approximately $5.0 billion of undistributed earnings included
in these funds. The amount of income taxes that would have resulted had such earnings been
repatriated is not practicably determinable.
Available-for-sale investment securities. Our investment portfolio is designed to invest excess
cash in securities which enables us to meet our working capital and liquidity needs. Our investment
portfolio primarily consists of debt securities issued by the U.S. Treasury or U.S. government-
sponsored agencies. The majority of these investments, $3.0 billion, are classified as non-current as
they have stated maturities of more than one year from the balance sheet date. However, these
investments are generally available to meet short-term liquidity needs.
Factors that may impact the liquidity of our investment portfolio include, but are not limited to,
changes to credit ratings of the securities, uncertainty related to regulatory developments, actions by
central banks and other monetary authorities, and the ongoing strength and quality of credit markets.
We will continue to review our portfolio in light of evolving market and economic conditions. However, if
current market conditions deteriorate, the liquidity of our investment portfolio may be impacted and we
could determine that some of our investments are impaired, which could adversely impact our financial
results. We have policies that limit the amount of credit exposure to any one financial institution or type
of investment. See Item 1A—Risk Factors included elsewhere in this report.
Commercial paper program. We maintain a commercial paper program to support our working
capital requirements and for other general corporate purposes. Under the program, we are authorized
to issue up to $3.0 billion in outstanding notes, with maturities up to 397 days from the date of
issuance. We had no outstanding obligations under the program at September 30, 2014. See
Note 9—Debt to our consolidated financial statements.
Credit facility. On January 29, 2014, we entered into an unsecured $3.0 billion revolving credit
facility. The credit facility, which expires on January 28, 2015, replaced our previous $3.0 billion credit
facility, which terminated on January 29, 2014. The new credit facility contains covenants and events of
default customary for facilities of this type. There were no borrowings under either facility and we were
in compliance with all related covenants during the year ended September 30, 2014. See
Note 9—Debt to our consolidated financial statements.
Universal shelf registration statement. In July 2012, we filed a registration statement with the SEC
using a shelf registration process. As permitted by the registration statement, we may, from time to
time, sell shares of debt or equity securities in one or more transactions. This registration statement
expires in July 2015.
51