Exhibit
Exhibit 99.1
Visa Inc. Reports Strong Fiscal Fourth Quarter and Full-Year 2017 Results
San Francisco, CA, October 25, 2017 - Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal fourth quarter and full year 2017, ended September 30, 2017.
Fiscal Fourth Quarter:
| |
• | GAAP net income of $2.1 billion or $0.90 per share |
| |
• | Net operating revenues of $4.9 billion, an increase of 14%, driven by continued growth in payments volume, cross-border volume and processed transactions |
| |
• | Payments volume growth, on a constant dollar basis and excluding Europe co-badge volume, was 10% over the prior year |
| |
• | Cross-border volume growth, on a constant dollar basis, was 10% over the prior year |
| |
• | Total Visa processed transactions increased 13% over the prior year |
| |
• | Returned approximately $2.1 billion of capital to shareholders in the form of share repurchases and dividends |
Fiscal Full Year:
| |
• | GAAP 2017 net income of $6.7 billion or $2.80 per share and adjusted full-year net income of $8.3 billion or $3.48 per share |
| |
• | 2017 net operating revenues of $18.4 billion, an increase of 22%, driven by inclusion of Visa Europe and continued growth in payments volume, cross-border volume and processed transactions |
| |
• | Payments volume growth, on a constant dollar basis and excluding Europe co-badge volume, was 30% over the prior year, or 11% inclusive of Visa Europe in prior year's results |
| |
• | Cross-border volume growth, on a constant dollar basis, was 80% or 11% inclusive of Visa Europe in prior year's results |
| |
• | Total Visa processed transactions increased 34% over the prior year, or 13% inclusive of Visa Europe in prior year's results |
| |
• | Returned approximately $8.5 billion of capital to shareholders in the form of share repurchases and dividends |
“Visa ended our fiscal year as we began, with strong growth across payments volume, cross-border volume and processed transactions, which was bolstered by the addition of Visa Europe,” said Alfred F. Kelly, Jr., Chief Executive Officer of Visa Inc. “We’re very pleased with our progress in Europe and will continue to make strategic investments that will further strengthen our franchise there and globally. As we look ahead to fiscal 2018, we are positioned for sustained growth and remain confident in our ability to continue delivering strong shareholder value.”
Fiscal Fourth Quarter 2017 Financial Highlights:
GAAP net income in the fiscal fourth quarter was $2.1 billion or $0.90 per share, an increase of 11% and 14%, respectively, over prior year's results. Excluding two special items in prior year’s results, net income increased 12% and earnings per share increased 15% over the prior year’s adjusted results. Exchange rate shifts versus the prior year positively impacted earnings per share growth by approximately one percentage point. All references to earnings per share assume fully-diluted class A share count, inclusive of series B and C convertible participating preferred stock, unless otherwise noted.
Net operating revenues in the fiscal fourth quarter were $4.9 billion, an increase of 14%, driven by continued growth in payments volume, cross-border volume and processed transactions. Exchange rate shifts versus the prior year had less than half of one percentage point positive impact on reported net operating revenue growth.
Payments volume for the three months ended June 30, 2017, on which fiscal fourth quarter service revenue is recognized, grew 39% over the prior year on a constant dollar basis and excluding Europe co-badge volume from prior year's results. Effective with the three months ended December 31, 2016, Europe co-badge volume is no longer included in reported volume.
Payments volume for the three months ended September 30, 2017, grew 10% over the prior year on a constant dollar basis and excluding Europe co-badge volume from prior year's results.
Cross-border volume growth, on a constant dollar basis, was 10% for the three months ended September 30, 2017.
Total processed transactions, which represent transactions processed by Visa, for the three months ended September 30, 2017, were 29.2 billion, a 13% increase over the prior year.
Fiscal fourth quarter service revenues were $2.1 billion, an increase of 20% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 16% over the prior year to $2.1 billion. International transaction revenues grew 20% over the prior year to $1.8 billion. Other revenues of $226 million rose 3% over the prior year. Client incentives, which are a contra revenue item, were $1.3 billion and represent 21.7% of gross revenues.
GAAP operating expenses were $1.6 billion for the fiscal fourth quarter, flat to the prior year's results which included a special item related to severance costs. Excluding this special item from prior year's results, operating expenses grew 8% over the prior year's adjusted results.
GAAP effective income tax rate was 31.0% for the quarter ended September 30, 2017.
Cash, cash equivalents, and available-for-sale investment securities were $15.3 billion at September 30, 2017.
The weighted-average number of diluted shares of class A common stock outstanding was 2.37 billion for the quarter ended September 30, 2017.
Fiscal Full-Year 2017 Financial Highlights:
GAAP net income in the fiscal full-year 2017 was $6.7 billion or $2.80 per share, an increase of 12% and 13%, respectively, over prior year's results. Current year’s results included special items related to the legal entity reorganization of Visa Europe and certain other Visa subsidiaries, while prior year's results included several special items primarily related to the acquisition of Visa Europe. Excluding these special items, adjusted net income was $8.3 billion and adjusted earnings per share was $3.48, an increase of 21% and 22%, respectively, over the prior year's adjusted results. Exchange rate shifts versus the prior year negatively impacted earnings per share growth by approximately 2 percentage points.
Net operating revenues in the fiscal full-year 2017 were $18.4 billion, an increase of 22%, driven by the inclusion of Visa Europe and continued growth in payments volume, cross-border volume and processed transactions. Exchange rate shifts versus the prior year negatively impacted reported net operating revenue growth by approximately one and a half percentage points.
Payments volume for the twelve months ended September 30, 2017, grew 30% over the prior year, on a constant dollar basis, or 11% inclusive of Visa Europe in prior year's results, in each case excluding Europe co-badge volume from prior year's results.
Cross-border volume growth, on a constant dollar basis, was 80% for the twelve months ended September 30, 2017. Cross-border volume growth, on a constant dollar basis and inclusive of Visa Europe in prior year's results, was 11%.
Total processed transactions, which represent transactions processed by Visa, for the twelve months ended September 30, 2017, were 111.2 billion, a 34% increase over the prior year. Total processed transactions growth was 13%, inclusive of Visa Europe in prior year's results.
Fiscal full-year 2017 service revenues were $8.0 billion, an increase of 18% over the prior year. Data processing revenues rose 24% over the prior year to $7.8 billion. International transaction revenues grew 36% over the prior year to $6.3 billion. Other revenues were $841 million, an increase of 2% over the prior year. Client incentives, which are a contra revenue item, were $4.6 billion and represent 19.9% of gross revenues.
GAAP operating expenses were $6.2 billion for the full-year 2017, a 14% decrease over the prior year's results. Current year’s results included special items related to the legal entity reorganization of Visa Europe and certain other Visa subsidiaries, while prior year’s results included several special items primarily related to the acquisition of Visa Europe. Excluding these special items, adjusted operating expenses grew 19% over the prior year, primarily driven by the inclusion of Visa Europe's operating expenses following the acquisition.
GAAP effective income tax rate was 42.7% for the twelve months ended September 30, 2017. Excluding special items associated with the legal entity reorganization of Visa Europe and certain other Visa subsidiaries, the adjusted effective income tax rate was 29.9%.
The weighted-average number of diluted shares of class A common stock outstanding was 2.40 billion for the fiscal full-year ended September 30, 2017.
Notable Events:
On September 11, 2017, the Company issued fixed-rate senior notes in an aggregate principal amount of $2.5 billion, with maturities ranging between 5 and 30 years, and interest rates from 2.15% to 3.65%. The weighted average interest rate is 2.78% and the weighted average maturity of the notes is 14 years. In October 2017, the Company used the majority of the proceeds from this new debt to redeem the $1.75 billion of senior notes scheduled to mature in December 2017.
During the three months ended September 30, 2017, the Company repurchased 16.9 million shares of class A common stock, at an average price of $102.54 per share, using $1.7 billion of cash on hand. In the twelve months ended September 30, 2017, the Company repurchased a total of 76.1 million shares of class A common stock, at an average
price of $90.31 per share, using $6.9 billion of cash on hand. The Company currently has $3.8 billion of funds available for share repurchase.
On October 17, 2017, the board of directors declared a quarterly cash dividend of $0.195 per share of class A common stock (determined in the case of class B and C common stock and series B and C convertible participating preferred stock on an as-converted basis) payable on December 5, 2017 to all holders of record of the Company’s common and preferred stock as of November 17, 2017.
Financial Outlook for Fiscal Full-Year 2018:
Visa Inc. provides its financial outlook for the following metrics for fiscal full-year 2018:
| |
• | Annual net revenue growth of high single digits on a nominal dollar basis, with approximately 0.5 to 1 ppt of positive foreign currency impact; |
| |
• | Client incentives as a percentage of gross revenues: 21.5% to 22.5% range; |
| |
• | Annual operating expense growth: Mid-single digits adjusted for special items in fiscal 2017 (see note below); |
| |
• | Annual operating margin: High 60s; |
| |
• | Effective tax rate: About 29%; and |
| |
• | Annual diluted class A common stock earnings per share growth: Mid-40's on a GAAP nominal dollar basis and high end of mid-teens on an adjusted, non-GAAP nominal dollar basis (see note below), both including approximately 1 to 1.5 ppts of positive foreign currency impact. |
Note: The financial outlook for fiscal full-year 2018 includes Visa Europe integration expenses of approximately $60 million for the full-year. Annual operating expense growth is derived from adjusted full-year 2017 operating expenses of $6.0 billion. Annual adjusted diluted class A common stock earnings per share growth is derived from adjusted full-year 2017 earnings per share results of $3.48. Refer to the accompanying financial tables for further details and a reconciliation of the adjusted fiscal full-year 2017 results.
Fiscal Fourth Quarter and Full-Year 2017 Earnings Results Conference Call Details:
Visa’s executive management team will host a live audio webcast beginning at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time) on Wednesday, October 25, 2017 to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on
the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at http://investor.visa.com.
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit usa.visa.com/aboutvisa, visacorporate.tumblr.com and @VisaNews.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and financial outlook for fiscal full-year 2018. Forward-looking statements generally are identified by words such as "believes," "estimates," "expects," "intends," "may," "projects," “outlook”, "could," "should," "will," "continue" and other similar expressions. All statements other than statements of historical fact could be forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond our control and are difficult to predict.
Actual results could differ materially from those expressed in, or implied by, our forward-looking statements due to a variety of factors, including, but not limited to:
| |
• | increased oversight and regulation of the global payments industry and our business; |
| |
• | impact of government-imposed restrictions on payment systems; |
| |
• | outcome of tax, litigation and governmental investigation matters; |
| |
• | increasingly intense competition in the payments industry, including competition for our clients and merchants; |
| |
• | proliferation and continuous evolution of new technologies and business models; |
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• | our ability to maintain relationships with our clients, merchants and other third parties; |
| |
• | brand or reputational damage; |
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• | impact of global economic, political, market and social events or conditions; |
| |
• | exposure to loss or illiquidity due to settlement guarantees; |
| |
• | uncertainty surrounding the impact of the United Kingdom’s withdrawal from the European Union; |
| |
• | cyber security attacks, breaches or failure of our networks; |
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• | failure to maintain interoperability with Visa Europe's systems; |
| |
• | our ability to successfully integrate and manage our acquisitions and other strategic investments; and |
| |
• | other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2016, and our subsequent reports on Forms 10-Q and 8-K. |
Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise.
Contacts:
Investor Relations: Jack Carsky or Joon Huh, 650-432-7644, ir@visa.com
Media Relations: Nathaniel Sillin, 415-805-4892, globalmedia@visa.com
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| | | | | | | |
VISA INC. | | | |
CONSOLIDATED BALANCE SHEETS |
(UNAUDITED) | | | |
| September 30, 2017 | | September 30, 2016 |
| (in millions, except par value data) |
Assets | | | |
Cash and cash equivalents | $ | 9,874 |
| | $ | 5,619 |
|
Restricted cash—U.S. litigation escrow | 1,031 |
| | 1,027 |
|
Investment securities: | | | |
Trading | 82 |
| | 71 |
|
Available-for-sale | 3,482 |
| | 3,248 |
|
Settlement receivable | 1,422 |
| | 1,467 |
|
Accounts receivable | 1,132 |
| | 1,041 |
|
Customer collateral | 1,106 |
| | 1,001 |
|
Current portion of client incentives | 344 |
| | 284 |
|
Prepaid expenses and other current assets | 550 |
| | 555 |
|
Total current assets | 19,023 |
| | 14,313 |
|
Investment securities, available-for-sale | 1,926 |
| | 3,931 |
|
Client incentives | 591 |
| | 448 |
|
Property, equipment and technology, net | 2,253 |
| | 2,150 |
|
Other assets | 1,226 |
| | 893 |
|
Intangible assets, net | 27,848 |
| | 27,234 |
|
Goodwill | 15,110 |
| | 15,066 |
|
Total assets | $ | 67,977 |
| | $ | 64,035 |
|
Liabilities | | | |
Accounts payable | $ | 179 |
| | $ | 203 |
|
Settlement payable | 2,003 |
| | 2,084 |
|
Customer collateral | 1,106 |
| | 1,001 |
|
Accrued compensation and benefits | 757 |
| | 673 |
|
Client incentives | 2,089 |
| | 1,976 |
|
Accrued liabilities | 1,129 |
| | 1,128 |
|
Current maturities of long-term debt | 1,749 |
| | — |
|
Accrued litigation | 982 |
| | 981 |
|
Total current liabilities | 9,994 |
| | 8,046 |
|
Long-term debt | 16,618 |
| | 15,882 |
|
Deferred tax liabilities | 5,980 |
| | 4,808 |
|
Deferred purchase consideration | 1,304 |
| | 1,225 |
|
Other liabilities | 1,321 |
| | 1,162 |
|
Total liabilities | 35,217 |
| | 31,123 |
|
Equity | | | |
Preferred stock, $0.0001 par value, 25 shares authorized and 5 shares issued and outstanding as follows: | | | |
Series A convertible participating preferred stock, none issued | — |
| | — |
|
Series B convertible participating preferred stock, 2 shares issued and outstanding at September 30, 2017 and 2016 | 2,326 |
| | 2,516 |
|
Series C convertible participating preferred stock, 3 shares issued and outstanding at September 30, 2017and 2016 | 3,200 |
| | 3,201 |
|
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,818 and 1,871 shares issued and outstanding at September 30, 2017 and 2016, respectively | — |
| | — |
|
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at September 30, 2017 and 2016 | — |
| | — |
|
Class C common stock, $0.0001 par value, 1,097 shares authorized, 13 and 17 shares issued and outstanding at September 30, 2017 and 2016, respectively | — |
| | — |
|
Treasury stock | — |
| | (170 | ) |
Right to recover for covered losses | (52 | ) | | (34 | ) |
Additional paid-in capital | 16,900 |
| | 17,395 |
|
Accumulated income | 9,508 |
| | 10,462 |
|
Accumulated other comprehensive income (loss), net: | | | |
Investment securities, available-for-sale | 73 |
| | 36 |
|
Defined benefit pension and other postretirement plans | (76 | ) | | (225 | ) |
Derivative instruments classified as cash flow hedges | (36 | ) | | (50 | ) |
Foreign currency translation adjustments | 917 |
| | (219 | ) |
Total accumulated other comprehensive income (loss), net | 878 |
| | (458 | ) |
Total equity | 32,760 |
| | 32,912 |
|
Total liabilities and equity | $ | 67,977 |
| | $ | 64,035 |
|
|
| | | | | | | | | | | | | | | |
VISA INC. | | | | | | | |
CONSOLIDATED STATEMENTS OF OPERATIONS | | | | |
(UNAUDITED) | | | | | | | |
| Three Months Ended
September 30, | | Twelve Months Ended
September 30, |
| 2017 | | 2016 (1) | | 2017 | | 2016 (1) |
| (in millions, except per share data) |
Operating Revenues | | | | | | | |
Service revenues | $ | 2,116 |
| | $ | 1,768 |
| | $ | 7,975 |
| | $ | 6,747 |
|
Data processing revenues | 2,067 |
| | 1,779 |
| | 7,786 |
| | 6,272 |
|
International transaction revenues | 1,792 |
| | 1,489 |
| | 6,321 |
| | 4,649 |
|
Other revenues | 226 |
| | 218 |
| | 841 |
| | 823 |
|
Client incentives | (1,346 | ) | | (993 | ) | | (4,565 | ) | | (3,409 | ) |
Net operating revenues | 4,855 |
| | 4,261 |
| | 18,358 |
| | 15,082 |
|
| | | | | | | |
Operating Expenses | | | | | | | |
Personnel | 655 |
| | 690 |
| | 2,628 |
| | 2,226 |
|
Marketing | 290 |
| | 300 |
| | 922 |
| | 869 |
|
Network and processing | 167 |
| | 161 |
| | 620 |
| | 538 |
|
Professional fees | 144 |
| | 113 |
| | 409 |
| | 389 |
|
Depreciation and amortization | 147 |
| | 141 |
| | 556 |
| | 502 |
|
General and administrative | 238 |
| | 230 |
| | 1,060 |
| | 796 |
|
Litigation provision | 2 |
| | 1 |
| | 19 |
| | 2 |
|
Visa Europe Framework Agreement loss | — |
| | — |
| | — |
| | 1,877 |
|
Total operating expenses | 1,643 |
| | 1,636 |
| | 6,214 |
| | 7,199 |
|
Operating income | 3,212 |
| | 2,625 |
| | 12,144 |
| | 7,883 |
|
| | | | | | | |
Non-operating (Expense) Income | | | | | | | |
Interest expense | (148 | ) | | (135 | ) | | (563 | ) | | (427 | ) |
Other | 35 |
| | 20 |
| | 113 |
| | 556 |
|
Total non-operating (expense) income | (113 | ) | | (115 | ) | | (450 | ) | | 129 |
|
Income before income taxes | 3,099 |
| | 2,510 |
| | 11,694 |
| | 8,012 |
|
Income tax provision | 959 |
| | 579 |
| | 4,995 |
| | 2,021 |
|
Net income | $ | 2,140 |
| | $ | 1,931 |
| | $ | 6,699 |
| | $ | 5,991 |
|
| | | | | | | |
Basic earnings per share | | | | | | | |
Class A common stock | $ | 0.91 |
| | $ | 0.79 |
| | $ | 2.80 |
| | $ | 2.49 |
|
Class B common stock | $ | 1.49 |
| | $ | 1.31 |
| | $ | 4.62 |
| | $ | 4.10 |
|
Class C common stock | $ | 3.62 |
| | $ | 3.17 |
| | $ | 11.21 |
| | $ | 9.94 |
|
| | | | | | | |
Basic weighted-average shares outstanding | | | | | | | |
Class A common stock | 1,825 |
| | 1,878 |
| | 1,845 |
| | 1,906 |
|
Class B common stock | 245 |
| | 245 |
| | 245 |
| | 245 |
|
Class C common stock | 13 |
| | 17 |
| | 14 |
| | 19 |
|
| | | | | | | |
Diluted earnings per share | | | | | | | |
Class A common stock | $ | 0.90 |
| | $ | 0.79 |
| | $ | 2.80 |
| | $ | 2.48 |
|
Class B common stock | $ | 1.49 |
| | $ | 1.30 |
| | $ | 4.61 |
| | $ | 4.09 |
|
Class C common stock | $ | 3.61 |
| | $ | 3.16 |
| | $ | 11.19 |
| | $ | 9.93 |
|
| | | | | | | |
Diluted weighted-average shares outstanding | | | | | | | |
Class A common stock | 2,368 |
| | 2,440 |
| | 2,395 |
| | 2,414 |
|
Class B common stock | 245 |
| | 245 |
| | 245 |
| | 245 |
|
Class C common stock | 13 |
| | 17 |
| | 14 |
| | 19 |
|
| |
(1) | We did not include Visa Europe's financial results in our unaudited consolidated statements of operations from the acquisition date, June 21, 2016, through June 30, 2016 as the impact was immaterial. Our unaudited consolidated statement of operations for the year ended September 30, 2016 includes Visa Europe's financial results for the three months ended September 30, 2016. |
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VISA INC. | | | | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | |
(UNAUDITED) | | | | | |
| For the Years Ended September 30, |
| 2017 | | 2016 | | 2015 |
| (in millions) |
Operating Activities | | | | | |
Net income | $ | 6,699 |
| | $ | 5,991 |
| | $ | 6,328 |
|
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | |
Client incentives | 4,565 |
| | 3,409 |
| | 2,861 |
|
Fair value adjustment for the Visa Europe put option | — |
| | (255 | ) | | 110 |
|
Share-based compensation | 235 |
| | 221 |
| | 187 |
|
Excess tax benefit for share-based compensation | — |
| | (63 | ) | | (84 | ) |
Depreciation and amortization of property, equipment, technology and intangible assets | 556 |
| | 502 |
| | 494 |
|
Deferred income taxes | 1,700 |
| | (764 | ) | | 195 |
|
Right to recover for covered losses recorded in equity | (209 | ) | | (9 | ) | | — |
|
Charitable contribution of Visa Inc. shares | 192 |
| | — |
| | — |
|
Other | 50 |
| | 64 |
| | 24 |
|
Change in operating assets and liabilities: | | | | | |
Settlement receivable | 94 |
| | 391 |
| | 378 |
|
Accounts receivable | (54 | ) | | (65 | ) | | (19 | ) |
Client incentives | (4,628 | ) | | (3,508 | ) | | (2,970 | ) |
Other assets | (252 | ) | | (315 | ) | | (41 | ) |
Accounts payable | (30 | ) | | 43 |
| | (13 | ) |
Settlement payable | (176 | ) | | (302 | ) | | (552 | ) |
Accrued and other liabilities | 465 |
| | 277 |
| | 118 |
|
Accrued litigation | 1 |
| | (43 | ) | | (432 | ) |
Net cash provided by operating activities | 9,208 |
| | 5,574 |
| | 6,584 |
|
Investing Activities | | | | | |
Purchases of property, equipment, technology and intangible assets | (707 | ) | | (523 | ) | | (414 | ) |
Proceeds from sales of property, equipment and technology | 12 |
| | — |
| | 10 |
|
Investment securities, available-for-sale: | | | | | |
Purchases | (3,238 | ) | | (10,426 | ) | (1) | (2,850 | ) |
Proceeds from maturities and sales | 5,012 |
| | 9,119 |
| (1) | 1,925 |
|
Acquisitions, net of $2.8 billion cash received from Visa Europe | (302 | ) | | (9,082 | ) | | (93 | ) |
Purchases of / contributions to other investments | (46 | ) | | (10 | ) | | (25 | ) |
Proceeds / distributions from other investments | 4 |
| | 6 |
| | 12 |
|
Net cash provided by (used in) investing activities | 735 |
| | (10,916 | ) | | (1,435 | ) |
Financing Activities | | | | | |
Repurchase of class A common stock | (6,891 | ) | | (6,987 | ) | | (2,910 | ) |
Treasury stock—class C common stock | — |
| | (170 | ) | | — |
|
Dividends paid | (1,579 | ) | | (1,350 | ) | | (1,177 | ) |
Proceeds from issuance of senior notes | 2,488 |
| | 15,971 |
| | — |
|
Debt issuance costs | (15 | ) | | (98 | ) | | — |
|
Payments from U.S. litigation escrow account—U.S. retrospective responsibility plan | — |
| | 45 |
| | 426 |
|
Cash proceeds from issuance of common stock under employee equity plans | 149 |
| | 95 |
| | 82 |
|
Restricted stock and performance-based shares settled in cash for taxes | (76 | ) | | (92 | ) | | (108 | ) |
Excess tax benefit for share-based compensation | — |
| | 63 |
| | 84 |
|
Net cash (used in) provided by financing activities | (5,924 | ) | | 7,477 |
| | (3,603 | ) |
Effect of exchange rate changes on cash and cash equivalents | 236 |
| | (34 | ) | | 1 |
|
Increase in cash and cash equivalents | 4,255 |
| | 2,101 |
| | 1,547 |
|
Cash and cash equivalents at beginning of year | 5,619 |
| | 3,518 |
| | 1,971 |
|
Cash and cash equivalents at end of year | $ | 9,874 |
| | $ | 5,619 |
| | $ | 3,518 |
|
Supplemental Disclosure | | | | | |
Series B and C convertible participating preferred stock issued in Visa Europe acquisition | $ | — |
| | $ | 5,717 |
| | $ | — |
|
Deferred purchase consideration recorded for Visa Europe acquisition | $ | — |
| | $ | 1,236 |
| | $ | — |
|
Income taxes paid, net of refunds | $ | 3,038 |
| | $ | 2,842 |
| | $ | 2,486 |
|
Interest payments on debt | $ | 489 |
| | $ | 244 |
| | $ | — |
|
Accruals related to purchases of property, equipment, technology and intangible assets | $ | 50 |
| | $ | 42 |
| | $ | 81 |
|
| |
(1) | Certain fiscal 2016 amounts have been revised to correct a presentation error in gross investing activity. The previously reported amounts included purchases and sales of securities, using the proceeds of our December 2015 debt offering, that had a maturity of 90 days or less. These securities are therefore considered “cash and cash equivalents” for financial reporting purposes and should not have been included in the gross investing activity. |
|
| | | | | | | | | | | | | | | | | | | |
VISA INC. | | | | | | | | | |
FISCAL 2017 AND 2016 QUARTERLY RESULTS OF OPERATIONS | | |
(UNAUDITED) | | | | | | | | | |
| | | | | | | | | |
| Fiscal 2017 Quarter Ended | | Fiscal 2016 Quarter Ended |
| September 30, 2017 | | June 30, 2017 | | March 31, 2017 | | December 31, 2016 | | September 30, 2016 (1) |
| (in millions) |
Operating Revenues | | | | | | | | | |
Service revenues | $ | 2,116 |
| | $ | 1,948 |
| | $ | 1,993 |
| | $ | 1,918 |
| | $ | 1,768 |
|
Data processing revenues | 2,067 |
| | 1,984 |
| | 1,843 |
| | 1,892 |
| | 1,779 |
|
International transaction revenues | 1,792 |
| | 1,571 |
| | 1,469 |
| | 1,489 |
| | 1,489 |
|
Other revenues | 226 |
| | 209 |
| | 203 |
| | 203 |
| | 218 |
|
Client incentives | (1,346 | ) | | (1,147 | ) | | (1,031 | ) | | (1,041 | ) | | (993 | ) |
Net operating revenues | 4,855 |
| | 4,565 |
| | 4,477 |
| | 4,461 |
| | 4,261 |
|
| | | | | | | | | |
Operating Expenses | | | | | | | | | |
Personnel | 655 |
| | 698 |
| | 704 |
| | 571 |
| | 690 |
|
Marketing | 290 |
| | 221 |
| | 193 |
| | 218 |
| | 300 |
|
Network and processing | 167 |
| | 158 |
| | 150 |
| | 145 |
| | 161 |
|
Professional fees | 144 |
| | 102 |
| | 83 |
| | 80 |
| | 113 |
|
Depreciation and amortization | 147 |
| | 132 |
| | 131 |
| | 146 |
| | 141 |
|
General and administrative | 238 |
| | 230 |
| | 406 |
| | 186 |
| | 230 |
|
Litigation provision | 2 |
| | — |
| | 2 |
| | 15 |
| | 1 |
|
Total operating expenses | 1,643 |
| | 1,541 |
| | 1,669 |
| | 1,361 |
| | 1,636 |
|
Operating income | 3,212 |
| | 3,024 |
| | 2,808 |
| | 3,100 |
| | 2,625 |
|
| | | | | | | | | |
Non-operating (Expense) Income | | | | | | | | | |
Interest expense | (148 | ) | | (140 | ) | | (135 | ) | | (140 | ) | | (135 | ) |
Other | 35 |
| | 30 |
| | 29 |
| | 19 |
| | 20 |
|
Total non-operating (expense) income | (113 | ) | | (110 | ) | | (106 | ) | | (121 | ) | | (115 | ) |
Income before income taxes | 3,099 |
| | 2,914 |
| | 2,702 |
| | 2,979 |
| | 2,510 |
|
Income tax provision | 959 |
| | 855 |
| | 2,272 |
| | 909 |
| | 579 |
|
Net income | $ | 2,140 |
| | $ | 2,059 |
| | $ | 430 |
| | $ | 2,070 |
| | $ | 1,931 |
|
| |
(1) | Our unaudited consolidated statements of operations for the three months ended September 30, 2016 includes Visa Europe's financial results. |
VISA INC.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(UNAUDITED)
Our financial results for the twelve months ended September 30, 2017 and the three and twelve months ended September 30, 2016 reflect the impact of certain significant items that we do not believe are indicative of our ongoing operating performance in these or future periods as they are either non-recurring or have no cash impact. As such, we believe the presentation of adjusted financial results excluding the following items provides a clearer understanding of our operating performance for the periods presented. There were no comparable adjustments recorded for the three months ended September 30, 2017.
| |
• | Elimination of deferred tax balances. During the second quarter of fiscal 2017, in connection with our legal entity reorganization, we eliminated deferred tax balances originally recognized upon the acquisition of Visa Europe, resulting in the recognition of a non-recurring, non-cash income tax provision of $1.5 billion. |
| |
• | Charitable contribution. During the second quarter of fiscal 2017, associated with our legal entity reorganization, we recognized a non-recurring, non-cash general and administrative expense of $192 million, before tax, related to the charitable donation of Visa Inc. shares that were acquired as part of the Visa Europe acquisition and held as treasury stock. Net of the related cash tax benefit of $71 million, determined by applying applicable tax rates, adjusted net income increased by $121 million. |
| |
• | Severance cost. In the fourth quarter of fiscal 2016, we recorded a $110 million charge for severance costs related to personnel reductions, including planned reductions at Visa Europe. Although we routinely record severance expenses, these charges are larger than any past quarterly accrual due to the acquisition and integration of Visa Europe. Net of related tax benefit of $38 million, determined by applying applicable tax rates, the adjustment to net income was an increase of $72 million. |
| |
• | Remeasurement of deferred tax liability. In September 2016, we recorded a non-cash, non-recurring $88 million gain upon the remeasurement of a deferred tax liability, recorded upon the acquisition of Visa Europe, to reflect a tax rate change in the United Kingdom. |
| |
• | Acquisition-related costs. During fiscal 2016, we incurred $152 million of non-recurring acquisition costs in operating expense as a result of the Visa Europe transaction. This amount is comprised of $60 million of transaction expenses recorded in professional fees, and $92 million of UK stamp duty recorded in general and administrative expenses. Net of related tax benefit of $56 million, determined by applying applicable federal and state tax rates, the adjustment to net income was an increase of $96 million. |
| |
• | Visa Europe Framework Agreement loss. Upon consummation of the transaction, on June 21, 2016, we recorded a non-recurring loss of $1.9 billion, before tax, in operating expense resulting from the effective settlement of the Framework Agreement between Visa and Visa Europe. Net of related tax benefit of $693 million, determined by applying applicable federal and state tax rates, the adjustment to net income was an increase of $1.2 billion. |
| |
• | Net gains on currency forward contracts. During fiscal 2016, we entered into currency forward contracts to mitigate a portion of our foreign currency exchange rate risk associated with the upfront cash consideration paid in the Visa Europe acquisition. As a result, we recorded non-recurring, net gains of $74 million, before tax, in other non-operating income. Net of related tax expense of $27 million, determined by applying applicable federal and state tax rates, the adjustment to net income was a decrease of $47 million. |
| |
• | Foreign exchange gain on euro deposits. During fiscal 2016, we recorded a non-recurring foreign exchange gain of $145 million, before tax, in other non-operating income as a result of holding euro-denominated bank balances for a short period in advance of the closing date of the Visa Europe acquisition. Net of related tax expense of $54 million, determined by applying applicable federal and state tax rates, the impact to net income was a decrease of $91 million. |
| |
• | Revaluation of Visa Europe put option. During the first quarter of fiscal 2016, we recorded a decrease of $255 million in the fair value of the Visa Europe put option, resulting in the recognition of non-cash income in other non-operating income. This amount is not subject to income tax and therefore has no impact on our reported income tax provision. |
Adjusted financial results are non-GAAP financial measures and should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following tables reconcile our as-reported financial measures calculated in accordance with U.S. GAAP, to our respective non-GAAP adjusted financial measures for the twelve months ended September 30, 2017 and the three and twelve months ended September 30, 2016. There were no comparable adjustments recorded during the three months ended September 30, 2017.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Twelve Months Ended September 30, 2017 |
(in millions, except percentages and per share data) | Operating Expenses | | Operating Margin
(1),(2) | | Non-operating (Expense) Income | | Income Before Income Taxes | | Income Tax Provision | | Effective Income Tax Rate(1) | | Net Income | | Diluted Earnings Per Share(1) |
As reported | $ | 6,214 |
| | 66 | % | | $ | (450 | ) | | $ | 11,694 |
| | $ | 4,995 |
| | 42.7 | % | | $ | 6,699 |
| | $ | 2.80 |
|
Elimination of deferred tax balances | — |
| | — | % | | — |
| | — |
| | (1,515 | ) | | | | 1,515 |
| | 0.63 |
|
Charitable contribution | (192 | ) | | 1 | % | | — |
| | 192 |
| | 71 |
| | | | 121 |
| | 0.05 |
|
As adjusted | $ | 6,022 |
| | 67 | % | | $ | (450 | ) | | $ | 11,886 |
| | $ | 3,551 |
| | 29.9 | % | | $ | 8,335 |
| | $ | 3.48 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2016 (3) |
(in millions, except percentages and per share data) | Operating Expenses | | Operating Margin
(1),(2) | | Non-operating (Expense) Income | | Income Before Income Taxes | | Income Tax Provision | | Effective Income Tax Rate(1) | | Net Income | | Diluted Earnings Per Share(1) |
As reported | $ | 1,636 |
| | 62 | % | | $ | (115 | ) | | $ | 2,510 |
| | $ | 579 |
| | 23.1 | % | | $ | 1,931 |
| | $ | 0.79 |
|
Severance cost | (110 | ) | | 3 | % | | — |
| | 110 |
| | 38 |
| | | | 72 |
| | 0.03 |
|
Remeasurement of deferred tax liability | — |
| | — | % | | — |
| | — |
| | 88 |
| | | | (88 | ) | | (0.04 | ) |
As adjusted | $ | 1,526 |
| | 64 | % | | $ | (115 | ) | | $ | 2,620 |
| | $ | 705 |
| | 26.9 | % | | $ | 1,915 |
| | $ | 0.78 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Twelve Months Ended September 30, 2016 (3) |
(in millions, except percentages and per share data) | Operating Expenses | | Operating Margin
(1),(2) | | Non-operating
(Expense)
Income | | Income Before Income Taxes | | Income Tax Provision | | Effective Income Tax Rate(1) | | Net Income | | Diluted Earnings Per Share(1) |
As reported | $ | 7,199 |
| | 52 | % | | $ | 129 |
| | $ | 8,012 |
| | $ | 2,021 |
| | 25.2 | % | | $ | 5,991 |
| | $ | 2.48 |
|
Severance cost | (110 | ) | | 1 | % | | — |
| | 110 |
| | 38 |
| | | | 72 |
| | 0.03 |
|
Remeasurement of deferred tax liability | — |
| | — | % | | — |
| | — |
| | 88 |
| | | | (88 | ) | | (0.04 | ) |
Acquisition-related costs | (152 | ) | | 1 | % | | — |
| | 152 |
| | 56 |
| | | | 96 |
| | 0.04 |
|
Visa Europe Framework Agreement loss | (1,877 | ) | | 12 | % | | — |
| | 1,877 |
| | 693 |
| | | | 1,184 |
| | 0.49 |
|
Net gains on currency forward contracts | — |
| | — | % | | (74 | ) | | (74 | ) | | (27 | ) | | | | (47 | ) | | (0.02 | ) |
Foreign exchange gain on euro deposits | — |
| | — | % | | (145 | ) | | (145 | ) | | (54 | ) | | | | (91 | ) | | (0.04 | ) |
Revaluation of Visa Europe put option | — |
| | — | % | | (255 | ) | | (255 | ) | | — |
| | | | (255 | ) | | (0.11 | ) |
As adjusted | $ | 5,060 |
| | 66 | % | | $ | (345 | ) | | $ | 9,677 |
| | $ | 2,815 |
| | 29.1 | % | | $ | 6,862 |
| | $ | 2.84 |
|
| |
(1) | Figures in the table may not recalculate exactly due to rounding. Operating margin, effective income tax rate, diluted earnings per share and their respective totals are calculated based on unrounded numbers. |
| |
(2) | Operating margin is calculated as operating income divided by total operating revenues. |
| |
(3) | We did not include Visa Europe's financial results in our unaudited consolidated statements of operations from the acquisition date, June 21, 2016, through June 30, 2016 as the impact was immaterial. Our unaudited consolidated statement of operations for the year ended September 30, 2016 includes Visa Europe's financial results for the three months ended September 30, 2016. |
Operational Performance Data
The tables below provide information regarding the available operational results for the 3 months ended September 30, 2017, as well as the prior four quarterly reporting periods and the 12 months ended September 30, 2017 and 2016, for cards carrying the Visa, Visa Electron, V PAY and Interlink brands. Sections 1-3 below reflect the acquisition of Visa Europe, with Europe included in Visa Inc. results effective the three months ended September 30, 2016.
1. Branded Volume and Transactions
The tables present regional total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume and transactions for all periods. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the 3 Months Ended September 30, 2017 |
| Total Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Transactions (millions) | | Cash Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Cash Transactions (millions) |
All Visa Credit & Debit | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | $ | 557 |
| | 4.0 | % | | 4.2 | % | | $ | 441 |
| | 8.5 | % | | 9.3 | % | | 6,126 |
| | $ | 117 |
| | (9.9 | )% | | (11.4 | )% | | 886 |
|
Canada | 69 |
| | 11.7 | % | | 7.0 | % | | 64 |
| | 12.2 | % | | 7.5 | % | | 841 |
| | 5 |
| | 6.5 | % | | 2.0 | % | | 11 |
|
CEMEA | 263 |
| | 10.7 | % | | 7.5 | % | | 85 |
| | 24.3 | % | | 19.6 | % | | 3,446 |
| | 178 |
| | 5.2 | % | | 2.5 | % | | 1,256 |
|
LAC | 254 |
| | 7.5 | % | | 6.8 | % | | 102 |
| | 11.6 | % | | 11.9 | % | | 3,033 |
| | 152 |
| | 4.9 | % | | 3.7 | % | | 1,149 |
|
US | 977 |
| | 8.2 | % | | 8.2 | % | | 836 |
| | 8.9 | % | | 8.9 | % | | 15,997 |
| | 141 |
| | 4.3 | % | | 4.3 | % | | 1,008 |
|
Europe | 555 |
| | 9.3 | % | | 8.0 | % | | 402 |
| | 11.6 | % | | 10.1 | % | | 8,248 |
| | 152 |
| | 3.5 | % | | 3.0 | % | | 1,100 |
|
Visa Inc. | 2,675 |
| | 7.8 | % | | 7.1 | % | | 1,930 |
| | 10.2 | % | | 9.8 | % | | 37,690 |
| | 745 |
| | 2.0 | % | | 0.7 | % | | 5,410 |
|
Visa Credit Programs | | | | | | | | | | | | | | | | | | | | | |
US | $ | 463 |
| | 9.1 | % | | 9.1 | % | | $ | 449 |
| | 9.7 | % | | 9.7 | % | | 5,649 |
| | $ | 14 |
| | (7.0 | )% | | (7.0 | )% | | 17 |
|
International | 700 |
| | 6.8 | % | | 6.7 | % | | 646 |
| | 7.5 | % | | 7.7 | % | | 9,127 |
| | 54 |
| | (1.3 | )% | | (3.7 | )% | | 231 |
|
Visa Inc. | 1,162 |
| | 7.7 | % | | 7.7 | % | | 1,095 |
| | 8.4 | % | | 8.5 | % | | 14,775 |
| | 68 |
| | (2.6 | )% | | (4.4 | )% | | 248 |
|
Visa Debit Programs | | | | | | | | | | | | | | | | | | | | | |
US | $ | 515 |
| | 7.5 | % | | 7.5 | % | | $ | 388 |
| | 8.0 | % | | 8.0 | % | | 10,348 |
| | $ | 127 |
| | 5.7 | % | | 5.7 | % | | 991 |
|
International | 998 |
| | 8.1 | % | | 6.2 | % | | 447 |
| | 17.1 | % | | 14.7 | % | | 12,566 |
| | 550 |
| | 1.7 | % | | 0.2 | % | | 4,171 |
|
Visa Inc. | 1,512 |
| | 7.9 | % | | 6.7 | % | | 835 |
| | 12.7 | % | | 11.5 | % | | 22,915 |
| | 677 |
| | 2.4 | % | | 1.2 | % | | 5,162 |
|
Operational Performance Data
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the 3 Months Ended June 30, 2017 | | | | |
| Total Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Transactions (millions) | | Cash Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Cash Transactions (millions) | | Accounts (millions) | | Cards (millions) |
All Visa Credit & Debit | | | | | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | $ | 532 |
| | 0.1 | % | | 1.9 | % | | $ | 414 |
| | 5.2 | % | | 7.6 | % | | 5,912 |
| | $ | 118 |
| | (14.2 | )% | | (14.1 | )% | | 867 |
| | 835 |
| | 943 |
|
Canada | 64 |
| | 3.5 | % | | 7.6 | % | | 59 |
| | 3.8 | % | | 7.9 | % | | 818 |
| | 5 |
| | 0.2 | % | | 4.2 | % | | 11 |
| | 50 |
| | 57 |
|
CEMEA | 261 |
| | 12.2 | % | | 7.6 | % | | 81 |
| | 26.5 | % | | 19.6 | % | | 3,244 |
| | 181 |
| | 6.9 | % | | 3.0 | % | | 1,288 |
| | 342 |
| | 330 |
|
LAC | 248 |
| | 10.9 | % | | 8.1 | % | | 99 |
| | 16.3 | % | | 13.4 | % | | 2,919 |
| | 148 |
| | 7.5 | % | | 4.9 | % | | 1,161 |
| | 425 |
| | 458 |
|
US | 981 |
| | 11.1 | % | | 11.1 | % | | 840 |
| | 12.1 | % | | 12.1 | % | | 15,938 |
| | 141 |
| | 5.6 | % | | 5.6 | % | | 1,003 |
| | 701 |
| | 867 |
|
Europe | 511 |
| |
|
| |
|
| | 372 |
| |
|
| |
|
| | 7,951 |
| | 140 |
| |
|
| |
|
| | 1,098 |
| | 481 |
| | 533 |
|
Visa Inc. | 2,598 |
| | 34.4 | % | | 34.1 | % | | 1,864 |
| | 38.2 | % | | 38.8 | % | | 36,783 |
| | 734 |
| | 25.6 | % | | 23.6 | % | | 5,428 |
| | 2,836 |
| | 3,188 |
|
Visa Credit Programs | | | | | | | | | | | | | | | | | | | | | | | | | |
US | $ | 460 |
| | 18.0 | % | | 18.0 | % | | $ | 446 |
| | 18.9 | % | | 18.9 | % | | 5,522 |
| | $ | 14 |
| | (3.9 | )% | | (3.9 | )% | | 16 |
| | 261 |
| | 337 |
|
International | 658 |
| | 28.3 | % | | 30.4 | % | | 607 |
| | 27.5 | % | | 29.8 | % | | 8,796 |
| | 51 |
| | 39.6 | % | | 38.1 | % | | 233 |
| | 659 |
| | 732 |
|
Visa Inc. | 1,119 |
| | 23.9 | % | | 25.0 | % | | 1,053 |
| | 23.7 | % | | 24.9 | % | | 14,318 |
| | 65 |
| | 27.1 | % | | 26.1 | % | | 250 |
| | 920 |
| | 1,069 |
|
Visa Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | |
US | $ | 521 |
| | 5.6 | % | | 5.6 | % | | $ | 393 |
| | 5.3 | % | | 5.3 | % | | 10,416 |
| | $ | 127 |
| | 6.8 | % | | 6.8 | % | | 986 |
| | 440 |
| | 530 |
|
International | 959 |
| | 78.6 | % | | 74.6 | % | | 417 |
| | 238.3 | % | | 229.7 | % | | 12,049 |
| | 541 |
| | 30.9 | % | | 28.1 | % | | 4,192 |
| | 1,476 |
| | 1,588 |
|
Visa Inc. | 1,479 |
| | 43.7 | % | | 42.0 | % | | 811 |
| | 63.1 | % | | 62.1 | % | | 22,465 |
| | 668 |
| | 25.5 | % | | 23.4 | % | | 5,178 |
| | 1,916 |
| | 2,118 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Operational Performance Data
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the 3 Months Ended March 31, 2017 | | | | |
| Total Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Transactions (millions) | | Cash Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Cash Transactions (millions) | | Accounts (millions) | | Cards (millions) |
All Visa Credit & Debit | | | | | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | $ | 517 |
| | 1.1 | % | | 2.2 | % | | $ | 400 |
| | 6.3 | % | | 7.6 | % | | 5,575 |
| | $ | 117 |
| | (13.4 | )% | | (12.8 | )% | | 857 |
| | 817 |
| | 924 |
|
Canada | 58 |
| | 13.3 | % | | 8.9 | % | | 53 |
| | 14.0 | % | | 9.6 | % | | 723 |
| | 5 |
| | 5.9 | % | | 1.8 | % | | 10 |
| | 49 |
| | 55 |
|
CEMEA | 236 |
| | 15.2 | % | | 6.9 | % | | 73 |
| | 28.5 | % | | 16.7 | % | | 2,907 |
| | 163 |
| | 10.1 | % | | 3.0 | % | | 1,213 |
| | 341 |
| | 331 |
|
LAC | 240 |
| | 17.9 | % | | 11.3 | % | | 96 |
| | 21.4 | % | | 13.4 | % | | 3,021 |
| | 144 |
| | 15.7 | % | | 9.9 | % | | 1,142 |
| | 419 |
| | 455 |
|
US | 908 |
| | 10.4 | % | | 10.4 | % | | 776 |
| | 11.8 | % | | 11.8 | % | | 14,588 |
| | 133 |
| | 3.0 | % | | 3.0 | % | | 931 |
| | 711 |
| | 859 |
|
Europe | 461 |
| |
|
| |
|
| | 339 |
| |
|
| |
|
| | 7,271 |
| | 123 |
| |
|
| |
|
| | 1,005 |
| | 481 |
| | 533 |
|
Visa Inc. | 2,420 |
| | 35.0 | % | | 33.2 | % | | 1,736 |
| | 38.6 | % | | 37.7 | % | | 34,085 |
| | 684 |
| | 26.5 | % | | 22.9 | % | | 5,158 |
| | 2,819 |
| | 3,156 |
|
Visa Credit Programs | | | | | | | | | | | | | | | | | | | | | | | | | |
US | $ | 418 |
| | 20.0 | % | | 20.0 | % | | $ | 404 |
| | 20.8 | % | | 20.8 | % | | 4,857 |
| | $ | 14 |
| | 0.4 | % | | 0.4 | % | | 16 |
| | 274 |
| | 334 |
|
International | 622 |
| | 31.0 | % | | 29.9 | % | | 575 |
| | 29.1 | % | | 28.5 | % | | 8,374 |
| | 48 |
| | 59.5 | % | | 50.6 | % | | 222 |
| | 651 |
| | 726 |
|
Visa Inc. | 1,040 |
| | 26.3 | % | | 25.7 | % | | 978 |
| | 25.5 | % | | 25.2 | % | | 13,231 |
| | 62 |
| | 40.3 | % | | 34.9 | % | | 238 |
| | 925 |
| | 1,060 |
|
Visa Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | |
US | $ | 490 |
| | 3.4 | % | | 3.4 | % | | $ | 372 |
| | 3.4 | % | | 3.4 | % | | 9,731 |
| | $ | 118 |
| | 3.4 | % | | 3.4 | % | | 915 |
| | 437 |
| | 525 |
|
International | 889 |
| | 79.6 | % | | 72.4 | % | | 386 |
| | 240.6 | % | | 222.4 | % | | 11,123 |
| | 504 |
| | 31.9 | % | | 27.2 | % | | 4,006 |
| | 1,457 |
| | 1,571 |
|
Visa Inc. | 1,380 |
| | 42.3 | % | | 39.4 | % | | 757 |
| | 60.2 | % | | 58.1 | % | | 20,854 |
| | 622 |
| | 25.3 | % | | 21.8 | % | | 4,921 |
| | 1,894 |
| | 2,096 |
|
Operational Performance Data
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the 3 Months Ended December 31, 2016 | | | | |
| Total Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Transactions (millions) | | Cash Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Cash Transactions (millions) | | Accounts (millions) | | Cards (millions) |
All Visa Credit & Debit | | | | | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | $ | 538 |
| | 2.8 | % | | 3.7 | % | | $ | 419 |
| | 8.2 | % | | 9.4 | % | | 5,662 |
| | $ | 119 |
| | (12.6 | )% | | (12.5 | )% | | 920 |
| | 802 |
| | 908 |
|
Canada | 63 |
| | 5.6 | % | | 5.2 | % | | 58 |
| | 5.8 | % | | 5.4 | % | | 779 |
| | 5 |
| | 3.5 | % | | 3.1 | % | | 10 |
| | 49 |
| | 56 |
|
CEMEA | 246 |
| | 7.8 | % | | 8.7 | % | | 72 |
| | 19.8 | % | | 19.9 | % | | 2,823 |
| | 174 |
| | 3.5 | % | | 4.7 | % | | 1,302 |
| | 334 |
| | 322 |
|
LAC | 250 |
| | 5.5 | % | | 8.6 | % | | 98 |
| | 9.5 | % | | 11.9 | % | | 3,155 |
| | 152 |
| | 3.1 | % | | 6.6 | % | | 1,215 |
| | 418 |
| | 453 |
|
US | 938 |
| | 11.4 | % | | 11.4 | % | | 804 |
| | 12.6 | % | | 12.6 | % | | 15,346 |
| | 134 |
| | 4.5 | % | | 4.5 | % | | 936 |
| | 718 |
| | 862 |
|
Europe | 491 |
| |
|
| |
|
| | 356 |
| |
|
| |
|
| | 7,690 |
| | 136 |
| |
|
| |
|
| | 1,086 |
| | 476 |
| | 531 |
|
Visa Inc. | 2,525 |
| | 33.7 | % | | 34.6 | % | | 1,806 |
| | 38.4 | % | | 39.1 | % | | 35,455 |
| | 719 |
| | 23.1 | % | | 24.5 | % | | 5,469 |
| | 2,798 |
| | 3,132 |
|
Visa Credit Programs | | | | | | | | | | | | | | | | | | | | | | | | | |
US | $ | 444 |
| | 19.6 | % | | 19.6 | % | | $ | 430 |
| | 20.4 | % | | 20.4 | % | | 5,349 |
| | $ | 14 |
| | — | % | | — | % | | 16 |
| | 282 |
| | 335 |
|
International | 648 |
| | 28.5 | % | | 29.9 | % | | 598 |
| | 27.2 | % | | 28.6 | % | | 8,706 |
| | 50 |
| | 46.7 | % | | 47.4 | % | | 243 |
| | 653 |
| | 728 |
|
Visa Inc. | 1,093 |
| | 24.7 | % | | 25.5 | % | | 1,028 |
| | 24.2 | % | | 25.0 | % | | 14,055 |
| | 64 |
| | 32.9 | % | | 33.3 | % | | 259 |
| | 935 |
| | 1,063 |
|
Visa Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | |
US | $ | 493 |
| | 4.9 | % | | 4.9 | % | | $ | 374 |
| | 4.9 | % | | 4.9 | % | | 9,997 |
| | $ | 119 |
| | 5.1 | % | | 5.1 | % | | 919 |
| | 437 |
| | 527 |
|
International | 939 |
| | 72.9 | % | | 75.4 | % | | 404 |
| | 234.0 | % | | 236.7 | % | | 11,403 |
| | 535 |
| | 26.8 | % | | 28.8 | % | | 4,291 |
| | 1,426 |
| | 1,543 |
|
Visa Inc. | 1,433 |
| | 41.4 | % | | 42.5 | % | | 778 |
| | 62.9 | % | | 63.3 | % | | 21,400 |
| | 655 |
| | 22.2 | % | | 23.7 | % | | 5,210 |
| | 1,863 |
| | 2,070 |
|
Operational Performance Data
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the 3 Months Ended September 30, 2016 | | | | |
| Total Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Transactions (millions) | | Cash Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Cash Transactions (millions) | | Accounts (millions) | | Cards (millions) |
All Visa Credit & Debit | | | | | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | $ | 536 |
| | 5.1 | % | | 3.9 | % | | $ | 406 |
| | 9.4 | % | | 7.8 | % | | 5,244 |
| | $ | 129 |
| | (6.4 | )% | | (6.6 | )% | | 997 |
| | 786 |
| | 891 |
|
Canada | 62 |
| | 5.9 | % | | 5.8 | % | | 57 |
| | 5.9 | % | | 5.7 | % | | 763 |
| | 5 |
| | 6.3 | % | | 6.2 | % | | 12 |
| | 48 |
| | 56 |
|
CEMEA | 237 |
| | 2.4 | % | | 7.6 | % | | 68 |
| | 11.9 | % | | 16.9 | % | | 2,583 |
| | 169 |
| | (1.0 | )% | | 4.2 | % | | 1,242 |
| | 329 |
| | 318 |
|
LAC | 236 |
| | 3.7 | % | | 9.7 | % | | 91 |
| | 7.2 | % | | 12.7 | % | | 2,995 |
| | 145 |
| | 1.6 | % | | 7.9 | % | | 1,165 |
| | 408 |
| | 444 |
|
US | 903 |
| | 9.9 | % | | 9.9 | % | | 768 |
| | 10.8 | % | | 10.8 | % | | 14,925 |
| | 135 |
| | 5.1 | % | | 5.1 | % | | 957 |
| | 697 |
| | 835 |
|
Europe | 507 |
| |
|
| |
|
| | 360 |
| |
|
| |
|
| | 7,193 |
| | 147 |
| |
|
| |
|
| | 1,107 |
| | 470 |
| | 532 |
|
Visa Inc. | 2,482 |
| | 34.2 | % | | 35.7 | % | | 1,751 |
| | 38.5 | % | | 39.0 | % | | 33,703 |
| | 731 |
| | 24.9 | % | | 28.3 | % | | 5,479 |
| | 2,738 |
| | 3,076 |
|
Visa Credit Programs | | | | | | | | | | | | | | | | | | | | | | | | | |
US | $ | 424 |
| | 18.3 | % | | 18.3 | % | | $ | 409 |
| | 18.8 | % | | 18.8 | % | | 5,122 |
| | $ | 15 |
| | 6.2 | % | | 6.2 | % | | 18 |
| | 276 |
| | 329 |
|
International | 655 |
| | 33.4 | % | | 33.2 | % | | 601 |
| | 31.8 | % | | 31.3 | % | | 8,452 |
| | 54 |
| | 54.3 | % | | 57.9 | % | | 262 |
| | 655 |
| | 731 |
|
Visa Inc. | 1,079 |
| | 27.0 | % | | 26.9 | % | | 1,010 |
| | 26.2 | % | | 25.9 | % | | 13,574 |
| | 70 |
| | 40.4 | % | | 43.0 | % | | 280 |
| | 931 |
| | 1,060 |
|
Visa Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | |
US | $ | 479 |
| | 3.5 | % | | 3.5 | % | | $ | 359 |
| | 3.0 | % | | 3.0 | % | | 9,803 |
| | $ | 120 |
| | 5.0 | % | | 5.0 | % | | 939 |
| | 421 |
| | 506 |
|
International | 923 |
| | 72.1 | % | | 78.1 | % | | 382 |
| | 230.9 | % | | 239.9 | % | | 10,326 |
| | 541 |
| | 28.5 | % | | 33.0 | % | | 4,260 |
| | 1,386 |
| | 1,510 |
|
Visa Inc. | 1,402 |
| | 40.3 | % | | 43.2 | % | | 741 |
| | 59.7 | % | | 61.7 | % | | 20,129 |
| | 661 |
| | 23.5 | % | | 26.9 | % | | 5,199 |
| | 1,807 |
| | 2,016 |
|
Operational Performance Data
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the 12 Months Ended September 30, 2017 |
| Total Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Transactions (millions) | | Cash Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Cash Transactions (millions) |
All Visa Credit & Debit | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | $ | 2,144 |
| | 2.0 | % | | 3.0 | % | | $ | 1,673 |
| | 7.1 | % | | 8.5 | % | | 23,274 |
| | $ | 471 |
| | (12.6 | )% | | (12.7 | )% | | 3,531 |
|
Canada | 254 |
| | 8.3 | % | | 7.1 | % | | 234 |
| | 8.7 | % | | 7.5 | % | | 3,162 |
| | 20 |
| | 4.0 | % | | 2.8 | % | | 42 |
|
CEMEA | 1,006 |
| | 11.4 | % | | 7.7 | % | | 310 |
| | 24.7 | % | | 19.0 | % | | 12,419 |
| | 695 |
| | 6.3 | % | | 3.3 | % | | 5,060 |
|
LAC | 991 |
| | 10.2 | % | | 8.7 | % | | 395 |
| | 14.5 | % | | 12.6 | % | | 12,128 |
| | 596 |
| | 7.5 | % | | 6.2 | % | | 4,667 |
|
US | 3,805 |
| | 10.3 | % | | 10.3 | % | | 3,255 |
| | 11.3 | % | | 11.3 | % | | 61,869 |
| | 549 |
| | 4.4 | % | | 4.4 | % | | 3,877 |
|
Europe (1) | 2,019 |
| |
|
| |
|
| | 1,468 |
| |
|
| |
|
| | 31,161 |
| | 551 |
| |
|
| |
|
| | 4,289 |
|
Visa Inc. | 10,218 |
| | 26.2 | % | | 25.7 | % | | 7,336 |
| | 29.7 | % | | 29.6 | % | | 144,013 |
| | 2,882 |
| | 18.1 | % | | 16.8 | % | | 21,465 |
|
Visa Credit Programs | | | | | | | | | | | | | | | | | | | | | |
US | $ | 1,786 |
| | 16.4 | % | | 16.4 | % | | $ | 1,729 |
| | 17.1 | % | | 17.1 | % | | 21,376 |
| | $ | 57 |
| | (2.7 | )% | | (2.7 | )% | | 65 |
|
International | 2,628 |
| | 22.4 | % | | 22.9 | % | | 2,426 |
| | 21.8 | % | | 22.5 | % | | 35,002 |
| | 202 |
| | 30.6 | % | | 27.8 | % | | 929 |
|
Visa Inc. | 4,414 |
| | 19.9 | % | | 20.2 | % | | 4,155 |
| | 19.8 | % | | 20.2 | % | | 56,379 |
| | 259 |
| | 21.5 | % | | 19.6 | % | | 994 |
|
Visa Debit Programs | | | | | | | | | | | | | | | | | | | | | |
US | $ | 2,019 |
| | 5.4 | % | | 5.4 | % | | $ | 1,527 |
| | 5.4 | % | | 5.4 | % | | 40,493 |
| | $ | 492 |
| | 5.3 | % | | 5.3 | % | | 3,812 |
|
International | 3,785 |
| | 51.5 | % | | 49.0 | % | | 1,654 |
| | 123.7 | % | | 118.7 | % | | 47,141 |
| | 2,131 |
| | 21.1 | % | | 19.5 | % | | 16,659 |
|
Visa Inc. | 5,804 |
| | 31.5 | % | | 30.3 | % | | 3,181 |
| | 45.4 | % | | 44.3 | % | | 87,634 |
| | 2,623 |
| | 17.8 | % | | 16.5 | % | | 20,471 |
|
| |
(1) | Europe payments volume growth was 10% Constant USD and 2% Nominal USD when including Europe in the prior periods before the Visa Inc. acquisition |
Operational Performance Data
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the 12 Months Ended September 30, 2016 | | | | |
| Total Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Payments Transactions (millions) | | Cash Volume ($ billions) | | Growth (Nominal USD) | | Growth (Constant USD) | | Cash Transactions (millions) | | Accounts (millions) | | Cards (millions) |
All Visa Credit & Debit | | | | | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | $ | 2,102 |
| | 3.8 | % | | 7.4 | % | | $ | 1,563 |
| | 8.7 | % | | 11.7 | % | | 19,945 |
| | $ | 539 |
| | (8.2 | )% | | (3.0 | )% | | 4,031 |
| | 786 |
| | 891 |
|
Canada | 234 |
| | (2.5 | )% | | 5.7 | % | | 215 |
| | (2.7 | )% | | 5.5 | % | | 2,886 |
| | 19 |
| | (0.2 | )% | | 7.9 | % | | 45 |
| | 48 |
| | 56 |
|
CEMEA | 903 |
| | (4.4 | )% | | 8.3 | % | | 249 |
| | 3.5 | % | | 16.6 | % | | 9,282 |
| | 654 |
| | (7.1 | )% | | 5.5 | % | | 4,894 |
| | 329 |
| | 318 |
|
LAC | 900 |
| | (9.4 | )% | | 9.0 | % | | 345 |
| | (8.0 | )% | | 12.6 | % | | 11,573 |
| | 555 |
| | (10.2 | )% | | 6.8 | % | | 4,545 |
| | 408 |
| | 444 |
|
US | 3,450 |
| | 9.5 | % | | 9.5 | % | | 2,924 |
| | 10.2 | % | | 10.1 | % | | 57,197 |
| | 526 |
| | 6.0 | % | | 6.0 | % | | 3,797 |
| | 697 |
| | 835 |
|
Europe (2) | 507 |
| |
|
| |
|
| | 360 |
| |
|
| |
|
| | 7,193 |
| | 147 |
| |
|
| |
|
| | 1,107 |
| | 470 |
| | 532 |
|
Visa Inc. | 8,096 |
| | 10.1 | % | | 15.9 | % | | 5,656 |
| | 14.7 | % | | 18.5 | % | | 108,076 |
| | 2,440 |
| | 0.6 | % | | 10.4 | % | | 18,419 |
| | 2,738 |
| | 3,076 |
|
Visa Credit Programs | | | | | | | | | | | | | | | | | | | | | | | | | |
US | $ | 1,535 |
| | 12.3 | % | | 12.2 | % | | $ | 1,476 |
| | 12.4 | % | | 12.4 | % | | 18,159 |
| | $ | 59 |
| | 8.4 | % | | 8.4 | % | | 68 |
| | 276 |
| | 329 |
|
International | 2,147 |
| | 9.8 | % | | 16.8 | % | | 1,992 |
| | 10.4 | % | | 17.0 | % | | 27,843 |
| | 155 |
| | 3.1 | % | | 15.0 | % | | 742 |
| | 655 |
| | 731 |
|
Visa Inc. | 3,682 |
| | 10.8 | % | | 14.9 | % | | 3,468 |
| | 11.2 | % | | 15.0 | % | | 46,002 |
| | 214 |
| | 4.5 | % | | 13.1 | % | | 810 |
| | 931 |
| | 1,060 |
|
Visa Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | |
US | $ | 1,916 |
| | 7.4 | % | | 7.4 | % | | $ | 1,448 |
| | 7.9 | % | | 7.9 | % | | 39,038 |
| | $ | 467 |
| | 5.7 | % | | 5.7 | % | | 3,730 |
| | 421 |
| | 506 |
|
International | 2,499 |
| | 11.2 | % | | 25.1 | % | | 740 |
| | 57.5 | % | | 76.2 | % | | 23,035 |
| | 1,759 |
| | (1.1 | )% | | 11.4 | % | | 13,880 |
| | 1,386 |
| | 1,510 |
|
Visa Inc. | 4,414 |
| | 9.5 | % | | 16.8 | % | | 2,188 |
| | 20.8 | % | | 24.5 | % | | 62,073 |
| | 2,226 |
| | 0.3 | % | | 10.2 | % | | 17,609 |
| | 1,807 |
| | 2,016 |
|
| |
(2) | Europe includes volumes and transactions for the 3 months ended September 30, 2016 only |
Operational Performance Data
2. Cross-Border Volume
The table below represents cross-border volume growth for cards carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands. Cross-border volume refers to payments and cash volume where the issuing country is different from the merchant country.
|
| | | | | | | | |
Period (1) | Growth (Nominal USD) | | Growth (Constant USD) | | Normalized
Growth (2)
(Constant USD) |
3 Months Ended | | | | | |
September 30, 2017 | 12 | % | | 10 | % | | NA |
June 30, 2017 | 142 | % | | 147 | % | | 11 | % |
March 31, 2017 | 129 | % | | 132 | % | | 11 | % |
December 31, 2016 | 135 | % | | 140 | % | | 12 | % |
September 30, 2016 | 146 | % | | 149 | % | | 10 | % |
| | | | | |
12 Months Ended | | | | | |
September 30, 2017 | 79 | % | | 80 | % | | 11 | % |
| |
(1) | Europe is included as part of Visa Inc. effective with the 3 months ended September 30, 2016. |
| |
(2) | Europe volumes and transactions were first included as part of Visa Inc. starting in the quarter ended September 30, 2016. Normalized Growth includes Europe activity in prior year periods before Visa Inc. acquired Visa Europe. |
3. Visa Processed Transactions
The table below represents transactions involving Visa, Visa Electron, V PAY, Interlink and PLUS cards processed on Visa’s networks.
|
| | | | | | | | |
Period (1) | Processed Transactions (millions) | | Growth | | Normalized Growth (2) |
3 Months Ended | | | | | |
September 30, 2017 | 29,180 |
| | 13 | % | | NA |
June 30, 2017 | 28,450 |
| | 44 | % | | 13 | % |
March 31, 2017 | 26,256 |
| | 42 | % | | 12 | % |
December 31, 2016 | 27,329 |
| | 44 | % | | 13 | % |
September 30, 2016 | 25,921 |
| | 41 | % | | 12 | % |
| | | | | |
12 Months Ended | | | | | |
September 30, 2017 | 111,215 |
| | 34 | % | | 13 | % |
| |
(1) | Europe is included as part of Visa Inc. effective with the 3 months ended September 30, 2016. |
| |
(2) | Europe volumes and transactions were first included as part of Visa Inc. starting in the quarter ended September 30, 2016. Normalized Growth includes Europe activity in prior year periods before Visa Inc. acquired Visa Europe. |
Operational Performance Data
Footnote
Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron, V PAY and Interlink brands for the relevant period; and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total volume represents payments and cash volume.
Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa’s signature based and Interlink (PIN) debit programs.
The data presented is based on results reported quarterly by Visa’s financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable.
On occasion, previously presented information may be updated. Prior period updates, if any, are not material.
Europe is reported and included in Visa Inc. results effective with the 3 months ended September 2016. Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. International includes Asia Pacific, Canada, CEMEA, Europe and LAC.
Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported (“Nominal USD”). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information (“Constant USD”). This presentation represents Visa’s historical methodology which may be subject to review and refinement.
Effective June 9, 2016, Article 8 of the EU Interchange Fee Regulation states that payment card networks cannot impose reporting requirements or the obligation to pay fees on payment transactions where their payment brand is present but their network is not used. Prior to this regulation, Visa collected a small service fee in a few countries, particularly France, on domestic payment transactions where Visa cards are co-badged with a domestic network. Clients in Europe continued to report co-badged volume through the quarter ended September 2016; however, Europe co-badged volume and transactions have been excluded from all periods.
