Visa 2007 Annual Report Download - page 112

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Table of Contents
VISA U.S.A. INC. AND SUBSIDIARIES
VISA INC. CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended September 30,
2007 2006 2005
(in thousands)
Operating Revenues
Service fees $ 1,944,537 $ 1,609,642 $ 1,446,516
Data processing fees 1,416,075 1,247,969 1,139,080
Volume and support incentives (504,780) (587,751) (524,107)
International transaction fees 454,168 397,954 360,269
Other revenues 279,796 280,312 242,847
Total operating revenues 3,589,796 2,948,126 2,664,605
Operating Expenses
Personnel 721,381 671,093 618,723
Network, EDP and communications 366,231 327,593 338,288
Advertising, marketing and promotion 580,883 473,945 456,922
Visa International fees 172,728 159,264 168,455
Professional and consulting fees 334,290 291,235 273,009
Administrative and other 210,948 272,448 223,952
Litigation provision 2,652,830 22,878 132,334
Total operating expenses 5,039,291 2,218,456 2,211,683
Operating (loss) income (1,449,495) 729,670 452,922
Other Income (Expense)
Equity in earnings of unconsolidated affiliates 40,276 13,355 30,799
Interest expense (80,658) (89,539) (108,485)
Investment income, net 102,459 68,330 81,009
Total other income (expense) 62,077 (7,854) 3,323
(Loss) income before income taxes and minority interest (1,387,418) 721,816 456,245
Income tax (benefit) expense (315,993) 251,338 183,296
(Loss) income before minority interest (1,071,425) 470,478 272,949
Minority interest (4,670) (15,917) (8,248)
(Loss) income before cumulative effect of change in accounting principle (1,076,095) 454,561 264,701
Cumulative effect of accounting change, net of tax (Note 3) — — 95,744
Net (loss) income $ (1,076,095) $ 454,561 $ 360,445
Pro forma amounts assuming the accounting changes are applied retroactively (Note 3) $ — $ — $ 264,701
See accompanying notes, which are an integral part of these consolidated financial statements.
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