Visa 2015 Annual Report Download - page 61
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• a $264 million tax benefit recognized in fiscal 2014 related to a deduction for U.S. domestic
production activities, of which $191 million was a one-time tax benefit related to prior fiscal
years.
The effective income tax rate of 30% in fiscal 2014 differs from the effective income tax rate of
31% in fiscal 2013 mainly due to:
• the aforementioned $264 million tax benefit recognized in fiscal 2014; and
• the absence of the following in fiscal 2014:
• a tax benefit recognized in fiscal 2013 as a result of new guidance issued by the
state of California regarding apportionment rules for years prior to fiscal 2012; and
• certain foreign tax credit benefits related to prior years recognized in fiscal 2013.
Liquidity and Capital Resources
Management of Our Liquidity
We regularly evaluate cash requirements for current operations, commitments, development
activities and capital expenditures, and we may elect to raise additional funds for these purposes in the
future through the issuance of either debt or equity. Our treasury policies provide management with the
guidelines and authority to manage liquidity risk in a manner consistent with our corporate objectives.
The objectives of our treasury policies are to:
• provide adequate liquidity to cover operating expenditures and liquidity contingency
scenarios;
• ensure timely completion of payments settlement activities;
• ensure payments on required litigation settlements;
• make planned capital investments in our business;
• pay dividends and repurchase our shares at the discretion of our board of directors; and
• optimize income earned by investing excess cash in securities that enable us to meet our
working capital and liquidity needs.
Based on our current cash flow budgets and forecasts of our short-term and long-term liquidity
needs, we believe that our projected sources of liquidity will be sufficient to meet our projected liquidity
needs for more than the next 12 months. We will continue to assess our liquidity position and potential
sources of supplemental liquidity in view of our operating performance, current economic and capital
market conditions, and other relevant circumstances.
Cash Flow Data
The following table summarizes our cash flow activity for the fiscal years presented:
2015 2014 2013
(in millions)
Total cash provided by (used in):
Operating activities ...................................... $ 6,584 $ 7,205 $ 3,022
Investing activities ...................................... (1,435) (941) (1,164)
Financing activities ...................................... (3,603) (6,478) (1,746)
Effect of exchange rate changes on cash and cash
equivalents .......................................... 1(1) —
Increase (decrease) in cash and cash equivalents .............. $ 1,547 $ (215) $ 112
48