Visa 2013 Annual Report Download - page 53
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or future years, as they were either non-recurring, had no cash impact or were related to amounts
covered by the retrospective responsibility plan. As such, we have presented our fiscal 2012 adjusted
effective income tax rate in the table below, which we believe provides a clearer understanding of our
operating performance for the fiscal year. Our adjusted effective income tax rate for fiscal 2012
excludes: the reversal of previously recorded tax reserves and accrued interest associated with
uncertainties related to the deductibility of covered litigation expense; additional covered litigation
provision recorded; and a one-time, non-cash benefit from the remeasurement of existing net deferred
tax liabilities attributable to changes in the California state apportionment rules.
Fiscal Year Ended September 30, 2012
Income
Before
Income Taxes
Income Tax
Provision
Effective
Income Tax
Rate
(in millions, except for percentages)
As reported ...................................... $ 2,207 $ 65 3%
Reversal of tax reserves ............................ (43) 283
Litigation provision ................................ 4,098 1,505
Remeasurement of net deferred tax liabilities .......... — 208
Adjusted ......................................... $ 6,262 $ 2,061 33%
Liquidity and Capital Resources
Management of Our Liquidity
We regularly evaluate cash requirements for current operations, commitments, development
activities and capital expenditures, and we may elect to raise additional funds for these purposes in the
future through the issuance of either debt or equity. Our treasury policies provide management with the
guidelines and authority to manage liquidity risk in a manner consistent with our corporate objectives.
The objectives of our treasury policies are to:
• provide adequate liquidity to cover operating expenditures and liquidity contingency
scenarios;
• ensure payments on required litigation settlements;
• ensure timely completion of payments settlement activities;
• make planned capital investments in our business;
• pay dividends and repurchase our shares at the discretion of our board of directors; and
• optimize income earned by investing excess cash in securities that enable us to meet our
working capital and liquidity needs.
Based on our current cash flow budgets and forecasts of our short-term and long-term liquidity
needs, we believe that our projected sources of liquidity will be sufficient to meet our projected liquidity
needs for more than the next 12 months. We will continue to assess our liquidity position and potential
sources of supplemental liquidity in view of our operating performance, current economic and capital
market conditions, and other relevant circumstances.
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