Visa 2015 Annual Report Download - page 130

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
generally driven by increased payment and transaction volume, and as a result, in the event incentive
payments exceed the above estimates, such payments are not expected to have a material effect on
the Company’s financial condition, results of operations or cash flows.
Note 18—Related Parties
Visa considers an entity to be a related party for purposes of this disclosure if that entity owns
more than 10% of Visa’s total voting common stock at the end of the fiscal year, or if an officer or
employee of that entity also serves on the Company’s board of directors. The Company considers an
investee to be a related party if the Company’s: (i) ownership interest in the investee is greater than or
equal to 10% or (ii) if the investment is accounted for under the equity method of accounting. At
September 30, 2015 and 2014, no entity owned more than 10% of the Company’s total voting common
stock. There were no significant transactions with related parties during fiscal 2015, 2014 and 2013.
Note 19—Income Taxes
The Company’s income before taxes by fiscal year consisted of the following:
2015 2014 2013
(in millions)
U.S. ........................................................ $ 7,214 $ 6,140 $ 5,992
Non-U.S. .................................................... 1,781 1,584 1,265
Total income before taxes ...................................... $ 8,995 $ 7,724 $ 7,257
U.S. income before taxes included $2.4 billion, $2.3 billion and $2.0 billion of the Company’s U.S.
entities’ income from operations outside of the U.S. for fiscal 2015, 2014 and 2013, respectively.
Income tax provision by fiscal year consisted of the following:
2015 2014 2013
(in millions)
Current:
U.S. federal ............................................... $ 1,991 $ 2,353 $ 568
State and local ............................................. 168 237 (58)
Non-U.S. ................................................. 300 274 239
Total current taxes ........................................... 2,459 2,864 749
Deferred:
U.S. federal ............................................... 181 (576) 1,401
State and local ............................................. 1(31) 114
Non-U.S. ................................................. 26 29 13
Total deferred taxes .......................................... 208 (578) 1,528
Total income tax provision ..................................... $ 2,667 $ 2,286 $ 2,277
117