Visa 2013 Annual Report Download - page 49

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Professional fees mainly consist of fees for consulting, legal and other professional services.
Depreciation and amortization includes depreciation expense for property and equipment, as well
as amortization of purchased and internally developed software. Also included in this amount is
amortization of finite-lived intangible assets primarily obtained through acquisitions.
General and administrative mainly consists of travel activities, facilities costs, foreign exchange
gains and losses and other corporate 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 cases, advice of counsel to the extent
appropriate and management’s best estimate of incurred loss as of the balance sheet date.
Non-operating Income
Non-operating income mainly includes accrued interest and penalties related to reserves for
uncertain tax positions; income, gains and losses earned on investments; and the change in the fair
value of the Visa Europe put option.
Visa Inc. Fiscal 2013, 2012 and 2011
Operating Revenues
The following table sets forth our operating revenues earned in the United States, internationally
and from Visa Europe. Revenues earned from Visa Europe are a result of our contractual arrangement
with Visa Europe, as governed by the Framework Agreement that provides for trademark and
technology licenses and bilateral services. See Note 2—Visa Europe to our consolidated financial
statements.
Fiscal Year ended
September 30, $ Change % Change(1)
2013 2012 2011
2013
vs.
2012
2012
vs.
2011
2013
vs.
2012
2012
vs.
2011
(in millions, except percentages)
United States ........... $ 6,379 $ 5,720 $ 5,135 $ 659 $ 585 12% 11%
International ............ 5,177 4,478 3,846 699 632 16% 16%
Visa Europe ............ 222 223 207 (1) 16 —% 7%
Total Operating
Revenues ............. $ 11,778 $ 10,421 $ 9,188 $ 1,357 $ 1,233 13% 13%
(1) Figures in the table may not recalculate exactly due to rounding. Percentage changes are calculated
based on whole numbers, not the rounded numbers presented.
The increase in operating revenues mainly reflects continued growth in our underlying business
drivers: nominal payments volume; processed transactions; and cross-border volume. Operating
revenue growth also benefited from pricing modifications made on various services. These benefits
were partially offset by volume loss and increases to client incentives implemented in the United States
during the second half of fiscal 2012 as part of our strategy to mitigate the impacts of the Dodd-Frank
Act.
Our operating revenues, primarily service revenues and international transaction revenues, are
impacted by the overall strengthening or weakening of the U.S. dollar as payments volume and related
41