The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Visa Inc. Posts Strong Fiscal First Quarter 2012 Earnings Results and Authorizes New $500 Million Share Repurchase Program

Wednesday, February 08, 2012

Visa Inc. Posts Strong Fiscal First Quarter 2012 Earnings Results and Authorizes New $500 Million Share Repurchase Program16:05 EST Wednesday, February 08, 2012SAN FRANCISCO, Feb. 8, 2012 /PRNewswire/ -- Quarterly net income of $1.0 billion or $1.49 per share of diluted class A common stockTotal as-converted class A common stock was reduced by 16.2 million shares, which was funded from $1.6 billion of the Company's operating cash on hand Authorized a new $500 million class A share repurchase programVisa Inc. (NYSE: V) today announced financial results for the Company's fiscal first quarter 2012 ended December 31, 2011. Net income for the quarter was $1.0 billion, or $1.49 per share of diluted class A common stock, an increase of 21% over the prior year.   The weighted-average number of diluted class A common stock outstanding was 690 million.   Net operating revenue in the first quarter of fiscal 2012 was $2.5 billion, an increase of 14% over the prior year and driven by strong double-digit growth in service revenues, data processing revenues and international transaction revenues. Currency fluctuations contributed a positive 1% towards quarterly net operating revenues."Visa's core businesses drove a strong start to fiscal 2012.  We achieved solid financial and operational performance as we continued to benefit from the secular shift to electronic payments.  Consumers' desire to use our products is evident in the strong growth we see outside the U.S. and the resiliency we are seeing in the U.S. in the wake of debit regulation," said Joe Saunders, chairman and chief executive officer.  "We are in the midst of executing on our strategy to address the new landscape in the United States and we are pleased with the early results of our efforts.""We remain intensely focused on further growing our international business, partnering with financial institutions, merchants, technology providers and governments," said Saunders.  "At the same time, we are moving forward on our innovation strategy and are working side by side with our financial institution and merchant clients to deliver the products and solutions that best drive our mutual success."Fiscal First Quarter 2012 Financial Highlights:Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2011, on which fiscal first quarter service revenue is recognized, was a positive 13% over the prior year at $971 billion.Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2011, was a positive 11% over the prior year at $994 billion.Cross-border volume growth, on a constant dollar basis, was a positive 13% for the three months ended December 31, 2011.Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2011, were 13.6 billion, a positive 8% increase over the prior year. Fiscal first quarter 2012 service revenues were $1.2 billion, an increase of 14% versus 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 13% over the prior year to $951 million. International transaction revenues, which are driven by cross-border activity, grew 19% over the prior year to $748 million. Other revenues, which include the Visa Europe licensing fee, were $178 million, an 11% increase over the prior year. Client incentives, which are a contra revenue item, were $481 million and represent 16% of gross revenues.Total operating expenses were $929 million for the quarter, a 7% increase over the prior year.  Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $7.9 billion at December 31, 2011. Visa's effective tax rate was 36% for the quarter ended December 31, 2011.Notable Events:Total as-converted class A common stock was reduced by 16.2 million shares during the three months ended December 31, 2011, which was funded from $1.6 billion of our operating cash on hand. Of the $1.6 billion, $75 million was used to repurchase class A common stock in the open market. In addition, we deposited $1.57 billion from our operating cash into the litigation escrow account previously established under the retrospective responsibility plan. This deposit has the same economic effect on earnings per share as repurchasing the Company's class A common stock as it reduces the as-converted class B common stock share count. The deposit reduced by an equivalent amount funds previously allocated to the amended July 2011 share repurchase program, which had no remaining authorized funds as of December 31, 2011.Today, the Company announced that its Board of Directors has authorized a new $500 million class A share repurchase program. The authorization will be in place through February 1, 2013, and is subject to further change at the discretion of the Board.On January 31, 2012, the Company held its 2012 annual meeting of stockholders. Stockholders approved all the proposals enumerated in the Company's proxy statement.The Board of Directors declared a quarterly dividend in the aggregate amount of $0.22 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on March 6, 2012, to all holders of record of the Company's class A, class B and class C common stock as of February 17, 2012.Financial Outlook:Visa Inc. updates its financial outlook for the following metrics through 2012: Annual net revenue growth in the low double digits; andAdjusted annual diluted class A common stock earnings per share growth in the high teens.Visa Inc. affirms its financial outlook for the following metrics for 2012:Client incentives as a percent of gross revenues: 17% to 18% range;Marketing expenses: Under $1 billion;  Annual operating margin of about 60%; Adjusted tax rate: 33% to 34% range*;Capital expenditures $350 million to $400 million range; and Annual free cash flow greater than $4 billion.* Financial Outlook excludes the impact of possible non-cash revaluation of deferred tax liabilities, which could decrease the GAAP tax rate to 30 to 31%.  These deferred tax liabilities are primarily associated with indefinite-lived intangible assets recorded as part of Visa's October 2007 reorganization.   Fiscal First Quarter 2012 Earnings Results Conference Call Details:Visa's executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) today 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 VisaVisa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks?VisaNet?that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.Forward Looking Statements:This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms "continue," "could," "may," "potential," and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about our strategy and its execution and about our revenue, earnings per share, incentive payments, expenses, operating margin, tax rate, capital expenditures and free cash flow and the growth of those items. By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are neither statements of historical fact nor guarantees of future performance and (iii) are subject to risks, uncertainties, assumptions and changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements because of a variety of factors, including the following: the impact of new laws, regulations and marketplace barriers, including: rules capping debit interchange reimbursement fees under the U.S. Wall Street Reform and Consumer Protection Act, or the Reform Act; rules under the Reform Act expanding issuers' and retailers' choice among debit payment networks; increased regulation outside the United States and in other product categories; and rules about consumer privacy and data use and security;developments in current or future litigation or government enforcement, including interchange, antitrust and tax disputes; economic factors, such as: an increase or spread of the current European crisis involving sovereign debt and the euro;other global economic, political and health conditions; cross-border activity and currency exchange rates; andmaterial changes in our clients' performance compared to our estimates; industry developments, such as competitive pressure, rapid technological developments, and disintermediation from the payments value stream; system developments, such as:disruption of our transaction processing systems or the inability to process transactions efficiently; account data breaches or increased fraudulent or other illegal activities involving our cards; and issues arising at Visa Europe, including failure to maintain interoperability between our systems; costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock; loss of organizational effectiveness or key employees; failure to integrate recent acquisitions successfully or to effectively launch new products and businesses; changes in accounting principles or treatments; and the other factors discussed in our most recent Annual Report on Form 10?K. You should not place undue reliance on such statements. Unless required to do so by law, we do not intend to update or revise any forward-looking statement, because of new information or future developments or otherwise.Contacts: Investor Relations: Jack Carsky or Anson Villaluz, 415-932-2213, ir@visa.comMedia Relations: Will Valentine, 415-932-2564, globalmedia@visa.com VISA INC.CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)Three Months Ended December 31, 20112010(in millions, except per share data)Operating RevenuesService revenues$ 1,151$ 1,008Data processing revenues951844International transaction revenues748630Other revenues178161Client incentives(481)(405)Total operating revenues2,5472,238Operating ExpensesPersonnel389357Network and processing9880Marketing190197Professional fees7061Depreciation and amortization8067General and administrative102110Total operating expenses929872Operating income 1,6181,366Other Income (Expense)Interest expense(10)4Investment income, net1010Other (1)2Total other (expense) income (1)16Income before income taxes 1,6171,382Income tax provision590498Net income including non-controlling interest1,027884Loss attributable to non-controlling interest2-Net income attributable to Visa Inc.$ 1,029$    884Basic earnings per share   Class A common stock$   1.50$   1.23   Class B common stock$   0.73$   0.63   Class C common stock$   1.50$   1.23Basic weighted-average shares outstanding   Class A common stock520494   Class B common stock245245   Class C common stock4694Diluted earnings per share   Class A common stock$   1.49$   1.23   Class B common stock$   0.73$   0.63   Class C common stock $   1.49$   1.23Diluted weighted-average shares outstanding   Class A common stock690719   Class B common stock245245   Class C common stock 4694 VISA INC.CONSOLIDATED BALANCE SHEETS(UNAUDITED)December 31,September 30,20112011(in millions, except par value data)AssetsCash and cash equivalents$            1,942$              2,127Restricted cash?litigation escrow4,3522,857Investment securities    Trading6557    Available-for-sale7341,214Settlement receivable509412Accounts receivable629560Customer collateral908931Current portion of client incentives206278Deferred tax assets461489Prepaid expenses and other current assets172265Total current assets9,9789,190Investment securities, available-for-sale899711Client incentives10685Property, equipment and technology, net1,5421,541Other assets121129Intangible assets, net11,45411,436Goodwill11,66811,668Total assets$          35,768$            34,760LiabilitiesAccounts payable$                 87$                 169Settlement payable426449Customer collateral908931Accrued compensation and benefits259387Client incentives 615528Accrued liabilities886562Accrued litigation356425Total current liabilities3,5373,451Deferred tax liabilities4,2124,205Other liabilities718667Total liabilities8,4678,323EquityPreferred stock, $0.0001 par value, 25 shares authorized and none issued--Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 524 and 520 shares issued and outstanding at December 31, 2011, and September 30, 2011, respectively--Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2011 and September 30, 2011--Class C common stock, $0.0001 par value, 1,097 shares authorized, 44 and 47 shares issued and outstanding at December 31, 2011, and September 30, 2011, respectively--Additional paid-in capital19,92919,907Accumulated income 7,5446,706Accumulated other comprehensive income (loss), net    Investment securities, available-for-sale1-    Defined benefit pension and other postretirement plans(183)(186)    Derivative instruments classified as cash flow hedges1818    Foreign currency translation adjustments(8)(8)Total accumulated other comprehensive loss, net(172)(176)Total equity27,30126,437Total liabilities and equity $          35,768$            34,760 VISA INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)Three Months Ended December 31,20112010(in millions)Operating ActivitiesNet income including non-controlling interest$ 1,027$    884Adjustments to reconcile net income including non-controlling interest to net cash provided by (used in) operating activities:       Amortization of client incentives481405       Share-based compensation3848       Excess tax benefit for share-based compensation(18)(7)       Depreciation and amortization of intangible assets and property, equipment and technology 8067       Deferred income taxes3482       Other(37)(18)Change in operating assets and liabilities:       Trading securities(8)(9)       Settlement receivable(97)(104)       Accounts receivable(69)(51)       Client incentives(343)(357)       Other assets12257       Accounts payable(82)(42)       Settlement payable(23)24       Accrued compensation and benefits(128)(129)       Accrued and other liabilities379227       Accrued litigation (70)(71)Net cash provided by operating activities1,2861,006Investing ActivitiesPurchases of property, equipment and technology(66)(75)Proceeds from disposal of property, equipment and technology2-Purchases of intangible assets(35)-Investment securities, available-for-sale:      Purchases(933)-      Proceeds from sales and maturities1,224-Purchases of / contributions to other investments(2)-Proceeds / distributions from other investments42Net cash provided by (used in) investing activities194(73)Financing ActivitiesRepurchase of class A common stock(75)(306)Dividends paid(152)(108)Deposits into litigation escrow account?retrospective responsibility plan(1,565)(800)Payments from litigation escrow account?retrospective responsibility plan7070Cash proceeds from exercise of stock options 4426Excess tax benefit for share-based compensation 187Principal payments on debt -(3)Principal payments on capital lease obligations (5)(7)Net cash used in financing activities (1,665)(1,121)Effect of exchange rate changes on cash and cash equivalents -5Decrease in cash and cash equivalents (185)(183)Cash and cash equivalents at beginning of year 2,1273,867Cash and cash equivalents at end of period$ 1,942$ 3,684Supplemental Disclosure of Cash Flow InformationIncome taxes paid, net of refunds$      57$      29Amounts included in accounts payable and accrued and other liabilities related to purchases of intangible assets and property, equipment and technology$      42$      17Interest payment on debt$         -$        1VISA INC.FISCAL 2011 AND 2012 QUARTERLY RESULTS OF OPERATIONS(UNAUDITED)Fiscal 2011 Quarter EndedFiscal 2012Quarter EndedDecember 31,2010March 31,2011June 30, 2011September 30, 2011December 31,2011(in millions)Operating RevenuesService revenues$                 1,008$         1,093$       1,055$              1,105$                    1,151Data processing revenues844823886925951International transaction revenues630624662758748Other revenues161156167171178Client incentives(405)(451)(448)(576)(481)Total operating revenues2,2382,2452,3222,3832,547Operating Expenses Personnel357351363388389Network and processing80809110698Marketing197183251239190Professional fees61778411570Depreciation and amortization6770747780General and administrative1109511495102Litigation provision-6-1-Total operating expenses8728629771,021929Operating income1,3661,3831,3451,3621,618Other Income (Expense)Interest income (expense) 4(12)(11)(13)(10)Investment income, net10988110Other2(3)1214(1)Total other income (expense)16(6)198(8)(1)Income before income taxes 1,3821,3771,5431,3541,617Income tax provision498497539476590Net income including non-controlling interest8848801,0048781,027Loss attributable to non-controlling interest -1122Net income attributable to Visa Inc.$                    884$            881$       1,005$                 880$                    1,029Operational Performance DataThe tables below provide information regarding the available operational results for the 3 months ended December 31, 2011, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 2011 and 2010, for cards carrying the Visa, Visa Electron and Interlink brands.  Also included is a table with information on the number of billable transactions processed on Visa Inc.'s CyberSource network.  1. Branded Volume and TransactionsThe tables present 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 and Interlink brands. 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 December 31, 2011TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD) PaymentsVolume($ billions)Growth(Nominal USD)Growth (ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)Cash Transactions(millions)All Visa Credit & DebitAsia Pacific$40913.0%11.3%$27514.8%11.7%2,949$1339.7%10.4%621Canada616.1%7.5%576.7%8.1%5035-0.1%1.2%10CEMEA22019.4%24.3%3930.3%37.9%63118017.2%21.7%1,060LAC26413.4%19.5%9415.9%21.9%2,08416912.1%18.2%998US         6357.3%7.3%5297.3%7.3%10,6051067.7%7.7%877Visa Inc.1,58811.3%12.4%99410.8%10.8%16,77359412.1%15.2%3,566Visa Credit ProgramsUS$2489.7%9.7%$2379.6%9.6%2,807$1110.4%10.4%16Rest of World43113.1%12.5%38013.8%13.0%4,378518.0%9.4%189Visa Inc.68011.8%11.5%61712.2%11.7%7,185638.4%9.6%205Visa Debit ProgramsUS$3875.9%5.9%$2925.4%5.4%7,798$957.4%7.4%861Rest of World52214.9%19.1%8621.1%25.2%1,78943613.7%18.0%2,500Visa Inc.90910.9%13.1%3788.6%9.3%9,58853112.5%15.9%3,361For the 3 Months Ended September 30, 2011TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD) PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions(millions)Accounts(millions)Cards(millions)All Visa Credit & DebitAsia Pacific$40223.2%13.9%$27228.3%17.5%2,893$13013.6%7.1%626509601Canada6114.6%7.6%5614.7%7.7%489513.5%6.6%102635CEMEA21229.7%27.2%3738.8%36.1%56917528.0%25.5%998241239LAC24922.4%16.7%8930.0%23.8%1,90516018.5%13.1%929372403US         6269.0%9.0%5179.1%9.1%10,4831099.0%9.0%906507653Visa Inc.1,55017.4%13.7%97117.0%13.4%16,33957918.0%14.2%3,4691,6541,930Visa Credit ProgramsUS$24111.0%11.0%$22910.3%10.3%2,663$1326.5%26.5%18201261Rest of World42124.4%15.6%36925.0%15.9%4,2195120.0%13.4%182453513Visa Inc.66219.2%13.9%59819.0%13.7%6,8826421.2%15.8%200653774Visa Debit ProgramsUS$3857.8%7.8%$2888.1%8.1%7,821$977.0%7.0%888306392Rest of World50423.3%18.2%8539.8%32.4%1,63741920.4%15.7%2,381695765Visa Inc.88816.1%13.5%37314.0%12.8%9,45751517.6%14.0%3,2691,0011,157For the 3 Months Ended June 30, 2011TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD) PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions(millions)Accounts(millions)Cards(millions)All Visa Credit & DebitAsia Pacific$37922.7%13.2%$24825.5%14.8%2,758$13117.6%10.4%599495588Canada6013.6%7.7%5514.0%8.0%47359.9%4.2%102534CEMEA20432.3%27.0%3541.6%35.5%53217030.5%25.4%992230232LAC24431.8%22.9%8537.1%27.7%1,81715929.1%20.5%912365398US         6239.9%9.9%51810.3%10.3%10,4101068.1%8.1%901499652Visa Inc.1,51119.1%14.7%94117.3%13.5%15,99057022.2%16.8%3,4141,6141,904Visa Credit ProgramsUS$2349.4%9.4%$2249.8%9.8%2,569$112.1%2.1%17199258Rest of World40025.0%15.7%34825.3%15.8%4,0425222.6%15.3%179448509Visa Inc.63418.8%13.3%57218.8%13.4%6,6106218.5%12.8%196647766Visa Debit ProgramsUS$38910.2%10.2%$29410.7%10.7%7,841$958.9%8.9%885300394Rest of World48827.8%20.5%7536.6%27.3%1,53841326.3%19.4%2,334667744Visa Inc.87719.4%15.7%36915.1%13.7%9,37950822.6%17.3%3,2199671,138For the 3 Months Ended March 31, 2011TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions(millions)Accounts(millions)Cards(millions)All Visa Credit & DebitAsia Pacific$35218.7%12.4%$23018.5%11.8%2,629$12119.0%13.5%578476573Canada5212.3%7.3%4811.4%6.5%420521.2%15.8%92533CEMEA17726.5%24.9%3033.8%31.2%48314725.1%23.7%906226225LAC22226.8%20.5%7732.5%25.9%1,74014523.9%17.8%860360389US         57611.1%11.1%47711.6%11.6%9,579998.9%8.9%839504649Visa Inc.1,37917.2%14.3%86215.7%13.1%14,85151719.9%16.5%3,1931,5921,869Visa Credit ProgramsUS$2097.6%7.6%$1999.1%9.1%2,282$10-16.4%-16.4%15197256Rest of World36419.2%13.2%31819.1%12.9%3,8254619.9%15.5%163444504Visa Inc.57314.7%11.1%51715.1%11.4%6,1075611.5%8.3%177641760Visa Debit ProgramsUS$36713.2%13.2%$27813.4%13.4%7,297$8912.6%12.6%824307393Rest of World43924.4%19.9%6831.8%26.1%1,44837223.2%18.9%2,192644715Visa Inc.80619.0%16.8%34516.6%15.7%8,74446121.0%17.6%3,0169501,109For the 3 Months Ended December 31, 2010TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions (millions)Accounts(millions)Cards(millions)All Visa Credit & DebitAsia Pacific$36113.6%8.2%$24021.9%15.4%2,767$1210.2%-4.1%591473571Canada5812.1%7.6%5311.3%6.8%467522.8%17.9%92533CEMEA18425.6%26.3%3032.8%31.8%47815424.3%25.3%955219222LAC23321.4%19.0%8126.0%25.8%1,82215119.1%15.7%914358387US         59211.5%11.5%49312.5%12.5%9,997997.0%7.0%852529686Visa Inc.1,42715.3%13.2%89816.5%14.5%15,53253013.2%11.1%3,3211,6041,898Visa Credit ProgramsUS$2265.4%5.4%$2167.6%7.6%2,534$10-26.7%-26.7%16205267Rest of World38120.1%15.1%33419.8%14.7%4,0084822.6%17.9%167442503Visa Inc.60814.2%11.3%55014.7%11.8%6,542589.5%6.3%183647770Visa Debit ProgramsUS$36515.7%15.7%$27716.6%16.6%7,464$8813.1%13.1%835324419Rest of World45416.5%13.9%7133.3%30.0%1,52638413.8%11.4%2,302633709Visa Inc.82016.1%14.7%34819.6%19.0%8,98947213.7%11.7%3,1389571,128For the 12 Months Ended December 31, 2011TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions(millions)All Visa Credit & DebitAsia Pacific$1,54219.2%12.7%$1,02721.5%14.0%11,229$51514.8%10.3%2,424Canada23511.5%7.5%21511.6%7.6%1,8852010.6%6.6%40CEMEA81426.7%25.9%14135.9%35.3%2,21567224.9%24.0%3,957LAC97922.9%19.8%34627.9%24.7%7,54663320.3%17.3%3,699US         2,4609.3%9.3%2,0409.5%9.5%41,0774208.4%8.4%3,523Visa Inc.6,02916.1%13.7%3,76815.1%12.6%63,9532,26017.8%15.6%13,642Visa Credit ProgramsUS$9339.5%9.5%$8889.7%9.7%10,320$454.8%4.8%65Rest of World1,61620.2%14.3%1,41520.6%14.4%16,46320117.3%13.3%713Visa Inc.2,54816.0%12.5%2,30316.2%12.6%26,78424514.8%11.7%778Visa Debit ProgramsUS$1,5279.2%9.2%$1,1529.3%9.3%30,757$3758.9%8.9%3,458Rest of World1,95322.2%19.4%31431.8%27.8%6,4121,63920.5%17.9%9,407Visa Inc.3,48016.1%14.7%1,46513.4%12.8%37,1692,01518.2%16.1%12,865For the 12 Months Ended December 31, 2010TotalVolume ($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions(millions)Accounts(millions)Cards(millions)All Visa Credit & DebitAsia Pacific$1,29319.0%11.1%$84522.1%13.4%10,488$44913.5%6.9%2,319473571Canada21116.6%7.1%19217.1%7.6%1,7391811.6%1.3%362533CEMEA64226.1%23.7%10431.5%27.7%1,64753825.2%23.0%3,438219222LAC79625.1%17.9%27027.9%22.9%6,41152623.6%15.5%3,454358387US         2,25111.7%11.7%1,86313.1%13.1%37,8453875.3%5.3%3,340529686Visa Inc.5,19317.3%13.6%3,27517.2%14.0%58,1291,91917.3%12.9%12,5881,6041,898Visa Credit ProgramsUS$8522.6%2.6%$8095.9%5.9%9,431$43-35.8%-35.8%66205267Rest of World1,34420.3%12.3%1,17320.4%12.5%14,98117119.3%11.2%616442503Visa Inc.2,19612.7%8.5%1,98314.0%9.8%24,4122141.9%-2.6%683647770Visa Debit ProgramsUS$1,39918.1%18.1%$1,05419.4%19.4%28,415$34514.3%14.3%3,274324419Rest of World1,59823.3%17.5%23838.5%30.7%5,3021,36021.0%15.5%8,631633709Visa Inc.2,99720.8%17.8%1,29222.5%21.4%33,7171,70519.6%15.3%11,9059571,128FootnoteThe preceding 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 and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data. Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron 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 volume plus 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 reported quarterly by Visa's members on their operating certificates and is subject to verification by Visa.  On occasion, members may update previously submitted information. Visa's CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Effective with the 3 months ended September, 2009, Pakistan and Afghanistan were moved from the AP to CEMEA region. 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. Rest of World includes Asia Pacific, Canada, CEMEA 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. 2. Cross Border VolumeThe table below represents cross border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross border volume refers to payments and cash volume where the issuing country is different from the merchant country. PeriodGrowth(NominalUSD)Growth(ConstantUSD)3 Months EndedDec 31, 201112%13%Sep 30, 201119%15%Jun 30, 201120%14%Mar 31, 201116%13%Dec 31, 201016%15%12 Months EndedDec 31, 201117%14%Dec 31, 201018%15%3. Visa Processed TransactionsThe table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa's networks. CyberSource transactions are not included in this table, and are reported in the next section.PeriodProcessedTransactions(millions)Growth3 Months EndedDec 31, 201113,6008%Sep 30, 201113,2639%Jun 30, 201113,03811%Mar 31, 201112,04013%Dec 31, 201012,58015%12 Months EndedDec 31, 201151,94110%Dec 31, 201047,06715%4. CyberSource TransactionsThe table below represents billable transactions processed on Visa Inc.'s CyberSource network.PeriodBillableTransactions(millions)Growth3 Months EndedDec 31, 20111,23525%Sep 30, 20111,08831%Jun 30, 20111,04538%Mar 31, 20111,01838%Dec 31, 201098740%12 Months EndedDec 31, 20114,38532%Dec 31, 20103,31235%SOURCE Visa Inc.