Visa 2009 Annual Report Download - page 39
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Table of Contents
Professional and consulting fees consist of fees for consulting, contractors, legal and other professional services.
Depreciation and amortization includes depreciation expenses of properties and equipment, as well as amortization of purchased and internally
developed software. Also included in this amount are depreciation and amortization of the incremental basis in technology and other assets acquired in our
reorganization.
Administrative and other primarily consists of facilities costs, foreign exchange gains and losses and other corporate and overhead expenses in support
of our business.
Litigation provision is an estimate of litigation expense and is based on management's understanding of our litigation profile, the specifics of the case,
advice of counsel to the extent appropriate, and management's best estimate of incurred loss at the balance sheet dates.
Other Income (Expense)
Interest expense primarily includes accretion associated with litigation settlements to be paid over periods longer than one year and interest incurred on
outstanding debt.
Investment income, net represents returns on our fixed-income securities and other investments. Investment income also includes cash dividends
received from other cost and equity method investments.
Other non-operating income primarily relates to the change in fair value of the liability under the Framework Agreement with Visa Europe. This
liability was fully discharged in October 2008.
Visa Inc. Fiscal 2009 and 2008 and Visa U.S.A. Fiscal 2007
The following discussion of results of operations compares Visa Inc. consolidated results for fiscal 2009 and 2008 and Visa U.S.A. results for fiscal
2007. Visa U.S.A. was the accounting acquirer in the reorganization that took place on October 1, 2007, and therefore Visa U.S.A. results are considered the
historical predecessor for those of Visa Inc., and are included for comparison.
Operating Revenues
The following table sets forth our operating revenues earned in the U.S., throughout the rest of the world, and from Visa Europe. Operating revenues for
periods prior to October 1, 2007 are for Visa U.S.A., and are not presented in the table below, Revenues earned from Visa Europe are a result of our
contractual arrangement with Visa Europe.
Fiscal Year ended September 30,
2009 2008
$
Change
%
Change(1)
(in millions, except percentages)
U.S. operating revenues $ 4,023 $ 3,664 $ 359 10%
Rest of world operating revenues 2,669 2,378 291 12%
EU fee operating revenues 219 221 (2) (1)%
Total Operating Revenues $ 6,911 $ 6,263 $ 648 10%
(1) Percentage change calculated based on whole numbers, not rounded numbers.
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