Visa 2015 Annual Report Download - page 62

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Operating activities. Reported cash provided by operating activities in fiscal 2015, 2014 and 2013
was significantly impacted by cash flows related to the interchange multidistrict litigation, including:
• payments of $426 million made from the litigation escrow account and a related decrease of
approximately $157 million of income taxes paid during fiscal 2015;
• the return of $1.1 billion in takedown payments in fiscal 2014 and related increase of $368
million in income taxes paid; and
• payments of $4.4 billion made in fiscal 2013 from the litigation escrow account and a related
decrease of $1.5 billion in overall income taxes paid.
The cash inflows and outflows related to the litigation escrow account are also reflected as
offsetting cash flows within financing activities for their respective years as they are covered by the
retrospective responsibility plan.
Absent the above impacts, cash provided by operating activities increased in fiscal 2015, 2014
and 2013 to approximately $6.9 billion, $6.5 billion, and $5.9 billion respectively, reflecting growth in
total operating revenues in all three years. See Note 3—U.S. Retrospective Responsibility Plan and
Potential Visa Europe Liabilities and Note 20—Legal Matters to our consolidated financial statements.
We believe that cash flow generated from operating activities will be more than sufficient to meet our
ongoing operational needs.
Investing activities. Cash used in investing activities was greater during fiscal 2015 compared to
the prior year, primarily reflecting a decrease in the proceeds received from maturities and sales of
available-for-sale securities, and an increase in purchases of available-for-sale securities. Cash used
in investing activities was lower during fiscal 2014 compared to fiscal 2013, reflecting a decrease in
purchases of available-for-sale investment securities, offset by an increase in cash used to acquire a
business in which we previously held a minority interest. See Note 4 —Fair Value Measurements and
Investments and Note 7—Intangible Assets and Goodwill to our consolidated financial statements.
Financing activities. Reported financing activities reflect significant cash flows in connection with
the interchange multidistrict litigation that offset the impacts discussed above within operating activities
as they are covered by the U.S. retrospective responsibility plan. Additionally, reported financing
activities in fiscal 2014 include deposits into the litigation escrow account of $450 million. Absent these
impacts, which are related to the interchange multidistrict litigation, cash used in financing activities
was $4.0 billion, $5.0 billion and $6.1 billion in fiscal 2015, 2014 and 2013, respectively. The changes
in fiscal years 2015 and 2014 are primarily due to the repurchase of class A common stock in the open
market. See Note 3—U.S. Retrospective Responsibility Plan and Potential Visa Europe Liabilities,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, access to liquidity from these holdings, and the return
that these holdings provide. We believe that cash flow generated from operations, in conjunction with
access to our other sources of liquidity, will be more than sufficient to meet our ongoing operational
needs.
Cash and cash equivalents and short-term and long-term available-for-sale investment securities
held by our foreign subsidiaries totaled $7.0 billion at September 30, 2015. If it were necessary to
repatriate these funds for use in the United States, we would be required to pay U.S. taxes on the
amount of undistributed earnings in those subsidiaries. It is our intent to indefinitely reinvest the
majority of these funds outside of the United States. As such, we have not accrued a U.S. income tax
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