Visa 2013 Annual Report Download - page 50

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revenues denominated in local currencies are converted to U.S. dollars. The effect of exchange rate
movements in fiscal 2013, as partially mitigated by our hedging program, resulted in an overall decline
of about one percentage point in total operating revenue growth compared to fiscal 2012. While we
expect our hedging program to continue to mitigate this risk during fiscal 2014, a general strengthening
of the U.S. dollar is expected to reduce total operating revenue growth by about two percentage points
for fiscal 2014, net of offsetting hedges. See Note 12—Derivative Financial Instruments to our
consolidated financial statements.
The following table sets forth the components of our total operating revenues.
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)
Service revenues ......... $ 5,352 $ 4,872 $ 4,261 $ 480 $ 611 10% 14%
Data processing
revenues ................ 4,642 3,975 3,478 667 497 17% 14%
International transaction
revenues ................ 3,389 3,025 2,674 364 351 12% 13%
Other revenues .......... 716 704 655 12 49 2% 7%
Client incentives .......... (2,321) (2,155) (1,880) (166) (275) 8% 15%
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.
•Service revenues increased in fiscal 2013 and 2012 primarily due to 8% and 10% growth in
nominal payments volume, respectively. The growth in service revenues in fiscal 2012 was
greater than the growth in nominal payments volume due to a shift in the mix of our payments
volume, primarily in volume related to Interlink, which is a debit product that does not
generate any service revenues.
•Data processing revenues increased in fiscal 2013 and 2012 due to overall growth in
processed transactions of 10% and 5%, respectively, combined with pricing modifications that
became effective in the third quarter of fiscal 2012 as part of our strategy to mitigate the
negative impacts from the Dodd-Frank Act.
•International transaction revenues increased in fiscal 2013 and 2012 primarily reflecting 10%
and 11% growth in nominal cross-border volume, respectively.
•Other revenues increased in fiscal 2013 and 2012 due to an increase in license fees as a
result of payments volume growth.
•Client incentives increased in fiscal 2013 and 2012, reflecting incentives incurred on long-term
client contracts that were initiated or renewed during fiscal 2013 and 2012, respectively.
These included a number of significant long-term merchant and acquirer contracts executed
as part of our strategy to mitigate the impacts from the Dodd-Frank Act, as well as issuer
contracts executed in fiscal 2013. Additionally, client incentives increased as a result of
42