Visa 2013 Annual Report Download - page 54

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Cash Flow Data
The following table summarizes our cash flow activity for the fiscal years presented:
2013 2012 2011
(in millions)
Total cash provided by (used in):
Operating activities ............................. $ 3,022 $ 5,009 $ 3,872
Investing activities .............................. (1,164) (2,414) (2,299)
Financing activities .............................. (1,746) (2,655) (3,304)
Effect of exchange rate changes on cash and cash
equivalents .................................... —7 (9)
Increase (decrease) in cash and cash equivalents ...... $ 112 $ (53) $ (1,740)
Operating activities. Cash provided by operating activities was lower during fiscal 2013 compared
to prior year, reflecting payments from the litigation escrow account totaling $4.4 billion in connection
with the covered litigation. As these payments were made from our litigation escrow account, they were
also reflected as cash inflows under financing activities. See Note 3—Retrospective Responsibility Plan
and Note 20—Legal Matters to our consolidated financial statements. The tax deduction related to
these payments contributed to the $1.5 billion decline in overall income taxes paid during fiscal 2013
compared to prior year. Absent the above impacts, cash provided by operating activities would have
totaled $5.9 billion, an increase over fiscal 2012, reflecting continued growth in operating revenues. We
believe that cash flow generated from operating activities will be more than sufficient to meet our
ongoing operational needs. Total cash provided by operating activities was higher during fiscal 2012
compared to fiscal 2011, primarily reflecting higher operating revenues in fiscal 2012.
Investing activities. Cash used in investing activities was lower during fiscal 2013 compared to
prior year, reflecting a decrease in purchases of available-for-sale investment securities, combined with
greater proceeds received from maturities and sales of available-for-sale investment securities. See
Note 4—Fair Value Measurements and Investments to our consolidated financial statements. Cash
used in investing activities during fiscal 2012 and 2011 was relatively consistent, reflecting our
continued investment in available-for-sale securities.
Financing activities. Cash used in financing activities during fiscal 2013, 2012 and 2011 reflects
our continued commitment to return excess cash to shareholders through reduction in the as-converted
class A share count, either through purchases in the open market or deposits made into the litigation
escrow, and increased dividends. Cash used in financing activities also reflects cash inflows relating to
payments made in connection with the covered litigation from the litigation escrow account. See
Note 3—Retrospective Responsibility Plan,Note 14— Stockholders’ Equity and Note 20—Legal
Matters to our consolidated financial statements.
Sources of Liquidity
Our primary sources of liquidity are cash on hand, cash flow from our operations, our investment
portfolio, and access to various equity and borrowing arrangements. Funds from operations are
maintained in cash and cash equivalents, and short-term or long-term available-for-sale investment
securities based upon our funding requirements, our access to liquidity from these holdings, and the
return that these holdings provide.
Cash and cash equivalents and short-term and long-term available-for-sale investment securities
held by our foreign subsidiaries totaled $4.3 billion at September 30, 2013. If it were necessary to
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