Visa 2015 Annual Report Download - page 52

Financial highlights. During fiscal 2015, we recorded net income of $6.3 billion or diluted class A
earnings per share of $2.58, an increase of 16% and 20% over the prior year, respectively. Our non-
GAAP adjusted net income and diluted earnings per share for fiscal 2015, 2014 and 2013 are as
follows:
Fiscal Year Ended
September 30, % Change(1)
2015 2014 2013
2015
vs.
2014
2014
vs.
2013
(in millions, except percentages)
Net income, as adjusted(2) ....... $ 6,438 $ 5,721 $ 4,980 13% 15%
Diluted earnings per share, as
adjusted(2),(3) ................. $ 2.62 $ 2.27 $ 1.90 16% 19%
(1) Figures in the tables may not recalculate exactly due to rounding. Percentage changes are
calculated based on unrounded numbers.
(2) Adjusted net income and diluted earnings per share in fiscal 2015 and 2014 exclude the impact of
certain significant items that we believe are not indicative of our operating performance, as they
either have no cash impact or are related to amounts covered by the U.S. retrospective
responsibility plan. For a full reconciliation of our adjusted financial results, see tables in Adjusted
financial results below. There were no comparable adjustments recorded during fiscal 2013.
(3) The per share amounts for the prior periods presented have been retroactively adjusted to reflect
the four-for-one stock split effected in the fiscal second quarter of 2015.
During fiscal 2015, we recognized a tax benefit of $296 million resulting from the resolution of
uncertain tax positions with taxing authorities. Of the $296 million benefit, $239 million relates to prior
fiscal years. Our financial results for the year ended September 30, 2014 reflect a one-time tax benefit
of $191 million associated with a deduction for U.S. domestic production activities related to fiscal
years 2013 and prior. See Note 19—Income Taxes to our consolidated financial statements.
We recorded net operating revenues of $13.9 billion for fiscal 2015, an increase of 9% over the
prior year driven by continued growth in our underlying business drivers: nominal payments volume;
processed transactions; and cross-border volume. The general strengthening of the U.S. dollar during
the year resulted in a two-and-a-half-percentage point decline in total operating revenue growth.
Total operating expenses for fiscal 2015 were $4.8 billion, a decrease of 4% over the prior year,
primarily due to the absence of a $450 million litigation provision associated with the interchange
multidistrict litigation recorded in fiscal 2014. Excluding this provision, operating expenses increased by
6% over prior year adjusted operating expenses, primarily due to increases in personnel, additional
depreciation from our ongoing investments in technology assets and infrastructure, and general and
administrative expenses. The increases were partially offset by decreases in network and processing
and marketing expenses.
Adjusted financial results. Our financial results for fiscal 2015 and 2014 reflect the impact of
significant items that we believe are not indicative of our operating performance in the prior or future
years, as they either have no cash impact or are related to amounts covered by the U.S. retrospective
responsibility plan. As such, we believe the presentation of adjusted financial results excluding the
following amounts provides a clearer understanding of our operating performance for the periods
presented.
•Revaluation of Visa Europe put option. During the third quarter of fiscal 2015, we recorded an
increase of $110 million in the fair value of the unamended Visa Europe put option, resulting in
the recognition of non-cash, non-operating expense in our financial results. This amount is not
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