Visa 2010 Annual Report Download - page 52

Table of Contents
Cash Flow Data
This table summarizes cash flow activity for the following fiscal years:
2010 2009 2008
(in millions)
Total cash provided by (used in):
Operating activities $ 2,691 $ 558 $ 531
Investing activities (1,904) 1,830 554
Financing activities (1,542) (2,751) 3,624
Effect of exchange rate changes on cash and cash equivalents 5 1 (5)
(Decrease) increase in cash and cash equivalents $ (750) $ (362) $ 4,704
Operating activities. Cash provided by operating activities for fiscal 2010 primarily reflects net income including non-controlling interest of $3.0 billion
and adjustments for non-cash items of $2.1 billion, offset by payments for volume and support incentives and litigation settlements, primarily including $682
million prepayment of our Retailers' litigation obligation, as further discussed below. Total cash provided by operating activities was higher during fiscal 2010
compared to the prior year, primarily reflecting higher year-to-date net income and lower litigation settlement payments. We believe that cash flow generated
from operating activities will sufficiently meet our ongoing operational needs.
Cash provided by operating activities for fiscal 2009 consisted of net income including non-controlling interest of $2.4 billion and adjustments for non-
cash items of $1.5 billion. Standard non-cash adjustments for volume and support incentive accruals and depreciation and amortization were offset by a $473
million pre-tax gain on the sale of our investment in VisaNet do Brasil, which is reflected in investing activities. Cash from operating activities also reflects
the use of $3.3 billion to fund significant operational payments, including litigation and volume and support incentives.
Cash provided by operating activities for fiscal 2008 consisted of net income including non-controlling interest of $804 million and adjustments for
non-cash items of $3.1 billion. Cash provided by operating activities was lower than income provided by operations, reflecting the use of cash to satisfy
litigation settlement payments and volume and support incentive payments net of new accruals.
Investing activities. Cash used in investing activities during fiscal 2010 primarily reflects the acquisition of CyberSource in July 2010 for $1.8 billion,
net of cash received. The use of cash in investing activities was partially offset by net cash proceeds of $56 million from sales and maturities of investment
securities compared to $290 million in the prior year, both of which were reinvested in money market funds. We also received $89 million in cash
distributions from the Reserve Primary Fund, or the Fund, in the current year compared to $884 million of distributions in the prior year as the Fund
liquidated.
Cash provided by investing activities for fiscal 2009 primarily reflects the $884 million of cash distribution from the Fund, net cash proceeds of $290
million from the sales and maturities of investment securities and $1.0 billion from the sale of our 10% ownership in VisaNet do Brasil, all of which were
reinvested in money market funds. We also purchased $306 million of property, equipment and technology primarily related to construction of our east coast
data center.
Cash provided by investing activities for fiscal 2008 reflects $1.0 billion of cash acquired through the reorganization, $949 million of net cash proceeds
from the sales and maturities of investment securities that were re-invested in shorter-term cash equivalents and $415 million of property,
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