UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June 30,~~December 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-33977

VISA INC.

(Exact name of Registrant as specified in its charter)

Delaware

26-0267673

(State or other jurisdiction
of incorporation or organization)

(IRS Employer
Identification No.)

P.O. Box 8999

~~94128-8999~~

San Francisco,

California

94128-8999

(Address of principal executive offices)

(Zip Code)

(650) 432-3200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

New York Stock Exchange

1.500% Senior Notes due 2026

V26

New York Stock Exchange

2.000% Senior Notes due 2029

V29

New York Stock Exchange

2.375% Senior Notes due 2034

V34

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of ~~July 19, 2023,~~January 17, 2024, there were ~~1,606,787,603~~1,581,590,212 shares outstanding of the registrant’s class A common stock, par value $0.0001 per share, 245,513,385 shares outstanding of the registrant’s class B common stock, par value $0.0001 per share, and ~~9,539,598~~9,406,105 shares outstanding of the registrant’s class C common stock, par value $0.0001 per share.

Table of Contents

VISA INC.

TABLE OF CONTENTS



		Page
PART I.	Financial Information	3

Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets—~~June~~ 3 0 ,December 31, 2023 and September 30, ~~2022~~2023	3
	Consolidated Statements of Operations—Three ~~and~~ ~~Nine~~ Months Ended ~~June~~December 3 01 , 2023 and 2022	4
	Consolidated Statements of Comprehensive Income—Three ~~and~~ ~~Nine~~ Months Ended ~~June~~December 3 01 , 2023 and 2022	5
	Consolidated Statements of Changes in Equity—Three ~~and~~ ~~Nine~~ Months Ended ~~June~~December 3 01 , 2023 and 2022	6
	Consolidated Statements of Cash Flows—~~Nine~~Three Months Ended ~~June~~D ecem ber 3 01 , 2023 and 2022	108
	Notes to Consolidated Financial Statements (Unaudited)	119
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2823
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3831
Item 4.	Controls and Procedures	3831

PART II.	Other Information	3932

Item 1.	Legal Proceedings	3932
Item 1A.	Risk Factors	3932
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4033
Item 3.	Defaults Upon Senior Securities	4033
Item 4.	Mine Safety Disclosures	4033
Item 5.	Other Information	4033
Item 6.	Exhibits	4134
	Signatures	4235

Table of Contents

PART I. FINANCIAL INFORMATION


ITEM 1.			Financial Statements (Unaudited)

VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


		June 30, 2023		September 30, 2022			December 31, 2023		September 30, 2023
		(in millions, except per share data)					(in millions, except per share data)
Assets	Assets					Assets
Cash and cash equivalents	Cash and cash equivalents	$	15,590	$	15,689	Cash and cash equivalents	$	13,591	$	16,286
Restricted cash equivalents—U.S. litigation escrow	Restricted cash equivalents—U.S. litigation escrow	1,627		1,449		Restricted cash equivalents—U.S. litigation escrow	1,616		1,764
Investment securities	Investment securities	3,166		2,833		Investment securities	5,005		3,842

Settlement receivable	Settlement receivable	2,454		1,932		Settlement receivable	2,525		2,183
Accounts receivable	Accounts receivable	2,282		2,020		Accounts receivable	2,506		2,291
Customer collateral	Customer collateral	2,907		2,342		Customer collateral	3,164		3,005
Current portion of client incentives	Current portion of client incentives	1,525		1,272		Current portion of client incentives	1,572		1,577
Prepaid expenses and other current assets	Prepaid expenses and other current assets	2,119		2,668		Prepaid expenses and other current assets	2,753		2,584
Total current assets	Total current assets	31,670		30,205		Total current assets	32,732		33,532
Investment securities	Investment securities	2,122		2,136		Investment securities	2,809		1,921
Client incentives	Client incentives	3,811		3,348		Client incentives	3,941		3,789
Property, equipment and technology, net	Property, equipment and technology, net	3,370		3,223		Property, equipment and technology, net	3,472		3,425
Goodwill	Goodwill	18,082		17,787		Goodwill	18,120		17,997
Intangible assets, net	Intangible assets, net	26,576		25,065		Intangible assets, net	26,739		26,104
Other assets	Other assets	3,603		3,737		Other assets	3,596		3,731
Total assets	Total assets	$	89,234	$	85,501	Total assets	$	91,409	$	90,499
Liabilities	Liabilities					Liabilities
Accounts payable	Accounts payable	$	281	$	340	Accounts payable	$	348	$	375
Settlement payable	Settlement payable	3,675		3,281		Settlement payable	3,724		3,269
Customer collateral	Customer collateral	2,907		2,342		Customer collateral	3,164		3,005
Accrued compensation and benefits	Accrued compensation and benefits	1,215		1,359		Accrued compensation and benefits	816		1,506
Client incentives	Client incentives	7,532		6,099		Client incentives	8,034		8,177
Accrued liabilities	Accrued liabilities	4,075		3,726		Accrued liabilities	5,077		5,015

Current maturities of debt		—		2,250

Accrued litigation	Accrued litigation	1,545		1,456		Accrued litigation	1,471		1,751
Total current liabilities	Total current liabilities	21,230		20,853		Total current liabilities	22,634		23,098
Long-term debt	Long-term debt	20,560		20,200		Long-term debt	20,703		20,463
Deferred tax liabilities	Deferred tax liabilities	5,380		5,332		Deferred tax liabilities	5,275		5,114
Other liabilities	Other liabilities	3,083		3,535		Other liabilities	3,064		3,091
Total liabilities	Total liabilities	50,253		49,920		Total liabilities	51,676		51,766
Commitments and contingencies (Note 13)						Commitments and contingencies (Note 13)
Equity	Equity					Equity

Series A, Series B and Series C convertible participating preferred stock (preferred stock), $0.0001 par value: 25 shares authorized and 5 (Series A less than one, Series B 2, Series C 3) shares issued and outstanding		1,786		2,324
Class A, Class B and Class C common stock and additional paid-in capital, $0.0001 par value: 2,003,341 shares authorized (Class A 2,001,622, Class B 622, Class C 1,097); 1,862 (Class A 1,607, Class B 245, Class C 10) and 1,890 (Class A 1,635, Class B 245, Class C 10) shares issued and outstanding		20,290		19,545
Series A, Series B and Series C convertible participating preferred stock (preferred stock), $0.0001 par value: 25 shares authorized and 5 (Series A less than one, Series B 2, Series C 3) shares issued and outstanding as of December 31, 2023 and September 30, 2023						Series A, Series B and Series C convertible participating preferred stock (preferred stock), $0.0001 par value: 25 shares authorized and 5 (Series A less than one, Series B 2, Series C 3) shares issued and outstanding as of December 31, 2023 and September 30, 2023	1,615		1,698
Class A, Class B and Class C common stock and additional paid-in capital, $0.0001 par value: 2,003,341 shares authorized (Class A 2,001,622, Class B 622, Class C 1,097); 1,836 (Class A 1,582, Class B 245, Class C 9) and 1,849 (Class A 1,594, Class B 245, Class C 10) shares issued and outstanding as of December 31, 2023 and September 30, 2023, respectively						Class A, Class B and Class C common stock and additional paid-in capital, $0.0001 par value: 2,003,341 shares authorized (Class A 2,001,622, Class B 622, Class C 1,097); 1,836 (Class A 1,582, Class B 245, Class C 9) and 1,849 (Class A 1,594, Class B 245, Class C 10) shares issued and outstanding as of December 31, 2023 and September 30, 2023, respectively	20,490		20,452

Right to recover for covered losses	Right to recover for covered losses	(25)		(35)		Right to recover for covered losses	(139)		(140)

Accumulated income	Accumulated income	17,908		16,116		Accumulated income	18,422		18,040
Accumulated other comprehensive income (loss), net:
Accumulated other comprehensive income (loss):						Accumulated other comprehensive income (loss):
Investment securities	Investment securities	(80)		(106)		Investment securities	(18)		(64)
Defined benefit pension and other postretirement plans	Defined benefit pension and other postretirement plans	(158)		(169)		Defined benefit pension and other postretirement plans	(153)		(155)
Derivative instruments	Derivative instruments	(259)		418		Derivative instruments	(208)		(177)
Foreign currency translation adjustments	Foreign currency translation adjustments	(481)		(2,512)		Foreign currency translation adjustments	(276)		(921)
Total accumulated other comprehensive income (loss), net		(978)		(2,369)
Total accumulated other comprehensive income (loss)						Total accumulated other comprehensive income (loss)	(655)		(1,317)
Total equity	Total equity	38,981		35,581		Total equity	39,733		38,733
Total liabilities and equity	Total liabilities and equity	$	89,234	$	85,501	Total liabilities and equity	$	91,409	$	90,499

See accompanying notes, which are an integral part of these unaudited consolidated financial statements.

Table of Contents

VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


		Three Months Ended June 30,				Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022		2023		2022				2023		2022
		(in millions, except per share data)										(in millions, except per share data)

Net revenues	Net revenues	$	8,123	$	7,275	$	24,044	$	21,523	Net revenues		$	8,634	$	7,936

Operating Expenses	Operating Expenses									Operating Expenses
Personnel	Personnel	1,481		1,283		4,333		3,634		Personnel		1,479		1,337
Marketing	Marketing	297		313		938		907		Marketing		293		332
Network and processing	Network and processing	182		178		539		558		Network and processing		181		178
Professional fees	Professional fees	133		117		372		342		Professional fees		131		109
Depreciation and amortization	Depreciation and amortization	235		230		696		635		Depreciation and amortization		247		227
General and administrative	General and administrative	314		289		918		856		General and administrative		340		322
Litigation provision	Litigation provision	457		717		798		865		Litigation provision		9		341

Total operating expenses	Total operating expenses	3,099		3,127		8,594		7,797		Total operating expenses		2,680		2,846
Operating income	Operating income	5,024		4,148		15,450		13,726		Operating income		5,954		5,090

Non-operating Income (Expense)	Non-operating Income (Expense)									Non-operating Income (Expense)
Interest expense	Interest expense	(182)		(111)		(461)		(379)		Interest expense		(187)		(137)
Investment income (expense) and other	Investment income (expense) and other	304		(208)		412		(79)		Investment income (expense) and other		275		24
Total non-operating income (expense)	Total non-operating income (expense)	122		(319)		(49)		(458)		Total non-operating income (expense)		88		(113)
Income before income taxes	Income before income taxes	5,146		3,829		15,401		13,268		Income before income taxes		6,042		4,977
Income tax provision	Income tax provision	990		418		2,809		2,251		Income tax provision		1,152		798
Net income	Net income	$	4,156	$	3,411	$	12,592	$	11,017	Net income		$	4,890	$	4,179

Basic Earnings Per Share	Basic Earnings Per Share									Basic Earnings Per Share
Class A common stock	Class A common stock	$	2.00	$	1.60	$	6.03	$	5.15	Class A common stock		$	2.39	$	1.99
Class B common stock	Class B common stock	$	3.20	$	2.59	$	9.65	$	8.33	Class B common stock		$	3.80	$	3.19
Class C common stock	Class C common stock	$	8.00	$	6.42	$	24.10	$	20.58	Class C common stock		$	9.58	$	7.96

Basic Weighted-average Shares Outstanding	Basic Weighted-average Shares Outstanding									Basic Weighted-average Shares Outstanding
Class A common stock	Class A common stock	1,614		1,642		1,623		1,655		Class A common stock		1,584		1,629
Class B common stock	Class B common stock	245		245		245		245		Class B common stock		245		245
Class C common stock	Class C common stock	10		10		10		10		Class C common stock		9		10

Diluted Earnings Per Share	Diluted Earnings Per Share									Diluted Earnings Per Share
Class A common stock	Class A common stock	$	2.00	$	1.60	$	6.02	$	5.14	Class A common stock		$	2.39	$	1.99
Class B common stock	Class B common stock	$	3.19	$	2.59	$	9.64	$	8.33	Class B common stock		$	3.80	$	3.19
Class C common stock	Class C common stock	$	7.99	$	6.41	$	24.08	$	20.56	Class C common stock		$	9.57	$	7.95

Diluted Weighted-average Shares Outstanding	Diluted Weighted-average Shares Outstanding									Diluted Weighted-average Shares Outstanding
Class A common stock	Class A common stock	2,080		2,129		2,092		2,143		Class A common stock		2,045		2,102
Class B common stock	Class B common stock	245		245		245		245		Class B common stock		245		245
Class C common stock	Class C common stock	10		10		10		10		Class C common stock		9		10

See accompanying notes, which are an integral part of these unaudited consolidated financial statements.

Table of Contents

VISA INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


		Three Months Ended June 30,				Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022		2023		2022				2023		2022
		(in millions)										(in millions)
Net income	Net income	$	4,156	$	3,411	$	12,592	$	11,017	Net income		$	4,890	$	4,179
Other comprehensive income (loss):	Other comprehensive income (loss):									Other comprehensive income (loss):
Investment securities:	Investment securities:									Investment securities:
Net unrealized gain (loss)	Net unrealized gain (loss)	(18)		(43)		33		(93)		Net unrealized gain (loss)		58		15
Income tax effect	Income tax effect	4		10		(7)		20		Income tax effect		(12)		(3)

Defined benefit pension and other postretirement plans:	Defined benefit pension and other postretirement plans:									Defined benefit pension and other postretirement plans:
Net unrealized actuarial gain (loss) and prior service credit (cost)	Net unrealized actuarial gain (loss) and prior service credit (cost)	1		—		6		(1)		Net unrealized actuarial gain (loss) and prior service credit (cost)		—		2
Income tax effect	Income tax effect	—		—		(1)		—		Income tax effect		—		(1)
Reclassification adjustments	Reclassification adjustments	3		—		7		2		Reclassification adjustments		3		1
Income tax effect	Income tax effect	(1)		—		(1)		—		Income tax effect		(1)		—
Derivative instruments:	Derivative instruments:									Derivative instruments:
Net unrealized gain (loss)	Net unrealized gain (loss)	(4)		348		(195)		539		Net unrealized gain (loss)		(77)		(116)
Income tax effect	Income tax effect	5		(68)		36		(103)		Income tax effect		16		14
Reclassification adjustments	Reclassification adjustments	18		(9)		17		(48)		Reclassification adjustments		39		(7)
Income tax effect	Income tax effect	(10)		—		(17)		4		Income tax effect		(9)		(4)
Foreign currency translation adjustments	Foreign currency translation adjustments	14		(1,100)		1,513		(2,023)		Foreign currency translation adjustments
Other comprehensive income (loss), net of tax		12		(862)		1,391		(1,703)
Translation adjustments										Translation adjustments		588		1,209
Income tax effect										Income tax effect		57		—
Other comprehensive income (loss)										Other comprehensive income (loss)		662		1,110
Comprehensive income	Comprehensive income	$	4,168	$	2,549	$	13,983	$	9,314	Comprehensive income		$	5,552	$	5,289

See accompanying notes, which are an integral part of these unaudited consolidated financial statements.

Table of Contents

VISA INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(UNAUDITED)

Three Months Ended June 30, 2023
Preferred Stock Common Stock and Additional Paid-in Capital Right to Recover for Covered Losses Accumulated
Income Accumulated
Other
Comprehensive
Income (Loss), Net Total
Equity
Shares Amount Shares Amount
(in millions, except per share data)
Balance as of March 31, 2023 5 $ 1,885 1,874 $ 20,095 $ (35) $ 17,610 $ (990) $ 38,565
Net income 4,156 4,156
Other comprehensive income (loss), net of tax 12 12
VE territory covered losses incurred (6) (6)
Recovery through conversion rate adjustment (16) 16 —
Conversion to class A common stock upon sales into public market — (1) (83) 1 83 —
Share-based compensation expense 191 191
Stock issued under equity plans 1 71 71
Restricted stock and performance-based shares settled in cash for taxes (1) (7) (7)
Cash dividends declared and paid, at a quarterly amount of $0.45 per class A common stock (937) (937)
Repurchase of class A common stock (13) (143) (2,921) (3,064)
Balance as of June 30, 2023 5 $ 1,786 1,862 $ 20,290 $ (25) $ 17,908 $ (978) $ 38,981

~~(1)Increase or decrease is less than one million shares.~~

~~See accompanying notes, which are an integral part of these unaudited consolidated financial statements.~~

~~Table of~~ ~~Contents~~

~~VISA INC.~~

~~CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY—(Continued)~~

~~(UNAUDITED)~~
Nine Months Ended June 30, 2023
Preferred Stock Common Stock and Additional Paid-in Capital Right to Recover for Covered Losses Accumulated
Income Accumulated
Other
Comprehensive
Income (Loss), Net Total
Equity
Shares Amount Shares Amount
(in millions, except per share data)
Balance as of September 30, 2022 5 $ 2,324 (1) 1,890 $ 19,545 $ (35) $ 16,116 $ (2,369) $ 35,581
Net income 12,592 12,592
Other comprehensive income (loss), net of tax 1,391 1,391
VE territory covered losses incurred (21) (21)
Recovery through conversion rate adjustment (30) 31 1
Conversion to class A common stock upon sales into public market — (2) (508) 8 508 —
Share-based compensation expense 591 591
Stock issued under equity plans 4 189 189
Restricted stock and performance-based shares settled in cash for taxes (1) (125) (125)
Cash dividends declared and paid, at a quarterly amount of $0.45 per class A common stock (2,823) (2,823)
Repurchase of class A common stock (39) (418) (7,977) (8,395)
Balance as of June 30, 2023 5 $ 1,786 (1) 1,862 $ 20,290 $ (25) $ 17,908 $ (978) $ 38,981


	Three Months Ended December 31, 2023
	Preferred Stock					Common Stock and Additional Paid-in Capital			Right to Recover for Covered Losses		Accumulated Income		Accumulated Other Comprehensive Income (Loss)		Total Equity
	Shares		Amount			Shares	Amount
	(in millions, except per share data)
Balance as of September 30, 2023	5		$	1,698	(1)	1,849	$	20,452	$	(140)	$	18,040	$	(1,317)	$	38,733
Net income											4,890				4,890
Other comprehensive income (loss)													662		662
VE territory covered losses incurred									(24)						(24)
Recovery through conversion rate adjustment			(25)						25						—

Conversion to class A common stock upon sales into public market	—	(2)	(58)			1	58								—
Share-based compensation							209								209
Stock issued under equity plans						2	104								104
Restricted stock and performance-based shares settled in cash for taxes						(1)	(172)								(172)
Cash dividends declared and paid, at a quarterly amount of $0.52 per class A common stock											(1,060)				(1,060)
Repurchase of class A common stock						(15)	(161)				(3,448)				(3,609)
Balance as of December 31, 2023	5		$	1,615	(1)	1,836	$	20,490	$	(139)	$	18,422	$	(655)	$	39,733

(1)As of ~~June 30,~~December 31, 2023 and September 30, ~~2022,~~2023, the book value of series A preferred stock was ~~$544~~$398 million and ~~$1.0 billion,~~$456 million, respectively. Refer to Note 5—U.S. and Europe Retrospective Responsibility Plans for the book value of series B and series C preferred stock.

(2)Increase or decrease is less than one million shares.

See accompanying notes, which are an integral part of these unaudited consolidated financial statements.

Table of Contents

VISA INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY—(Continued)

(UNAUDITED)

Three Months Ended June 30, 2022
Preferred Stock Common Stock and Additional Paid-in Capital Right to Recover for Covered Losses Accumulated
Income Accumulated
Other
Comprehensive
Income (Loss), Net Total
Equity
Shares Amount Shares Amount
(in millions, except per share data)
Balance as of March 31, 2022 5 $ 2,987 1,903 $ 18,876 $ (120) $ 14,651 $ (405) $ 35,989
Net income 3,411 3,411
Other comprehensive income (loss), net of tax (862) (862)
VE territory covered losses incurred (15) (15)
Recovery through conversion rate adjustment (112) 112 —
Conversion to class A common stock upon sales into public market — (1) (24) 1 24 —
Share-based compensation expense 152 152
Stock issued under equity plans — (1) 40 40
Restricted stock and performance-based shares settled in cash for taxes — (1) (1) (1)
Cash dividends declared and paid, at a quarterly amount of $0.375 per class A common stock (798) (798)
Repurchase of class A common stock (12) (129) (2,304) (2,433)
Balance as of June 30, 2022 5 $ 2,851 1,892 $ 18,962 $ (23) $ 14,960 $ (1,267) $ 35,483


	Three Months Ended December 31, 2022
	Preferred Stock					Common Stock and Additional Paid-in Capital				Right to Recover for Covered Losses		Accumulated Income		Accumulated Other Comprehensive Income (Loss)		Total Equity
	Shares		Amount			Shares		Amount
	(in millions, except per share data)
Balance as of September 30, 2022	5		$	2,324	(1)	1,890		$	19,545	$	(35)	$	16,116	$	(2,369)	$	35,581
Net income												4,179				4,179
Other comprehensive income (loss)														1,110		1,110

VE territory covered losses incurred										(8)						(8)
Recovery through conversion rate adjustment			(14)							15						1

Conversion to class A common stock upon sales into public market	—	(2)	(329)			5		329								—
Share-based compensation								177								177
Stock issued under equity plans						2		56								56
Restricted stock and performance-based shares settled in cash for taxes						—	(2)	(112)								(112)
Cash dividends declared and paid, at a quarterly amount of $0.45 per class A common stock												(945)				(945)
Repurchase of class A common stock						(16)		(168)				(2,947)				(3,115)
Balance as of December 31, 2022	5		$	1,981	(1)	1,881		$	19,827	$	(28)	$	16,403	$	(1,259)	$	36,924

(1)As of December 31, 2022 and September 30, 2022, the book value of series A preferred stock was $723 million and $1.0 billion, respectively. Refer to Note 5—U.S. and Europe Retrospective Responsibility Plans for the book value of series B and series C preferred stock.

(2)Increase or decrease is less than one million shares.

See accompanying notes, which are an integral part of these unaudited consolidated financial statements.

~~Table of~~ ~~Contents~~

~~VISA INC.~~

~~CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY—(Continued)~~

~~(UNAUDITED)~~
Nine Months Ended June 30, 2022
Preferred Stock Common Stock and Additional Paid-in Capital Right to Recover for Covered Losses Accumulated
Income Accumulated
Other
Comprehensive
Income (Loss), Net Total
Equity
Shares Amount Shares Amount
(in millions, except per share data)
Balance as of September 30, 2021 5 $ 3,080 1,932 $ 18,855 $ (133) $ 15,351 $ 436 $ 37,589
Net income 11,017 11,017
Other comprehensive income (loss), net of tax (1,703) (1,703)
VE territory covered losses incurred (31) (31)
Recovery through conversion rate adjustment (141) 141 —
Conversion to class A common stock upon sales into public market — (1) (88) 2 88 —
Share-based compensation expense

470 470
Stock issued under equity plans 4 153 153
Restricted stock and performance-based shares settled in cash for taxes — (1) (117) (117)
Cash dividends declared and paid, at a quarterly amount of $0.375 per class A common stock (2,409) (2,409)
Repurchase of class A common stock (46) (487) (8,999) (9,486)
Balance as of June 30, 2022 5 $ 2,851 1,892 $ 18,962 $ (23) $ 14,960 $ (1,267) $ 35,483

~~(1)Increase or decrease is less than one million shares.~~

~~See accompanying notes, which are an integral part of these unaudited consolidated financial statements.~~

Table of Contents

VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


		Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022			2023		2022
		(in millions)					(in millions)
Operating Activities	Operating Activities					Operating Activities
Net income	Net income	$	12,592	$	11,017	Net income	$	4,890	$	4,179
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	Adjustments to reconcile net income to net cash provided by (used in) operating activities:					Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Client incentives	Client incentives	8,858		7,435		Client incentives	3,348		2,786
Share-based compensation expense		591		470
Depreciation and amortization of property, equipment, technology and intangible assets		696		635
Share-based compensation						Share-based compensation	209		177
Depreciation and amortization						Depreciation and amortization	247		227
Deferred income taxes	Deferred income taxes	(253)		(203)		Deferred income taxes	59		(132)
VE territory covered losses incurred	VE territory covered losses incurred	(21)		(31)		VE territory covered losses incurred	(24)		(8)
(Gains) losses on equity investments, net	(Gains) losses on equity investments, net	111		142		(Gains) losses on equity investments, net	(4)		106
Other	Other	(7)		(71)		Other	11		(26)
Change in operating assets and liabilities:	Change in operating assets and liabilities:					Change in operating assets and liabilities:
Settlement receivable	Settlement receivable	(373)		(248)		Settlement receivable	(257)		(54)
Accounts receivable	Accounts receivable	(228)		(80)		Accounts receivable	(195)		(60)
Client incentives	Client incentives	(8,188)		(7,038)		Client incentives	(3,601)		(2,743)
Other assets	Other assets	(66)		(455)		Other assets	(204)		160
Accounts payable	Accounts payable	(51)		(29)		Accounts payable	(18)		(64)
Settlement payable	Settlement payable	114		886		Settlement payable	313		44
Accrued and other liabilities	Accrued and other liabilities	(34)		37		Accrued and other liabilities	(877)		(666)
Accrued litigation	Accrued litigation	87		506		Accrued litigation	(283)		245
Net cash provided by (used in) operating activities	Net cash provided by (used in) operating activities	13,828		12,973		Net cash provided by (used in) operating activities	3,614		4,171
Investing Activities	Investing Activities					Investing Activities
Purchases of property, equipment and technology	Purchases of property, equipment and technology	(754)		(675)		Purchases of property, equipment and technology	(267)		(249)
Investment securities:	Investment securities:					Investment securities:
Purchases	Purchases	(2,817)		(4,415)		Purchases	(2,743)		(1,995)
Proceeds from maturities and sales	Proceeds from maturities and sales	2,410		2,580		Proceeds from maturities and sales	1,137		1,310
Acquisitions, net of cash and restricted cash acquired		—		(1,945)

Purchases of other investments	Purchases of other investments	(81)		(68)		Purchases of other investments	(11)		(20)
Settlement of derivative instruments	Settlement of derivative instruments	402		—		Settlement of derivative instruments	—		402
Other investing activities	Other investing activities	22		128		Other investing activities	(5)		42
Net cash provided by (used in) investing activities	Net cash provided by (used in) investing activities	(818)		(4,395)		Net cash provided by (used in) investing activities	(1,889)		(510)
Financing Activities	Financing Activities					Financing Activities
Repurchase of class A common stock	Repurchase of class A common stock	(8,350)		(9,486)		Repurchase of class A common stock	(3,580)		(3,115)
Repayments of debt	Repayments of debt	(2,250)		—		Repayments of debt	—		(2,250)
Dividends paid	Dividends paid	(2,823)		(2,409)		Dividends paid	(1,060)		(945)
Proceeds from issuance of senior notes		—		3,218

Cash proceeds from issuance of class A common stock under equity plans	Cash proceeds from issuance of class A common stock under equity plans	189		153		Cash proceeds from issuance of class A common stock under equity plans	104		56
Restricted stock and performance-based shares settled in cash for taxes	Restricted stock and performance-based shares settled in cash for taxes	(125)		(117)		Restricted stock and performance-based shares settled in cash for taxes	(172)		(112)
Other financing activities	Other financing activities	167		(15)		Other financing activities	329		19
Net cash provided by (used in) financing activities	Net cash provided by (used in) financing activities	(13,192)		(8,656)		Net cash provided by (used in) financing activities	(4,379)		(6,347)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	844		(725)		Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	300		692
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	662		(803)		Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	(2,354)		(1,994)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	20,377		19,799		Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	21,990		20,377
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	21,039	$	18,996	Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	19,636	$	18,383
Supplemental Disclosure	Supplemental Disclosure					Supplemental Disclosure
Cash paid for income taxes, net	Cash paid for income taxes, net	$	3,013	$	2,891	Cash paid for income taxes, net	$	1,503	$	721
Interest payments on debt	Interest payments on debt	$	568	$	548	Interest payments on debt	$	213	$	244
Accruals related to purchases of property, equipment and technology	Accruals related to purchases of property, equipment and technology	$	87	$	34	Accruals related to purchases of property, equipment and technology	$	26	$	27

See accompanying notes, which are an integral part of these unaudited consolidated financial statements.

108

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1—Summary of Significant Accounting Policies

Organization. Visa Inc., together with its subsidiaries (Visa or the Company), is a global payments technology company that facilitates global commerce and money movement across more than 200 countries and territories. Visa operates one of the world’s largest electronic payments networks — VisaNet — which provides transaction processing services (primarily authorization, clearing and settlement). The Company offers products, solutions and services that facilitate secure, reliable and efficient money movement for participants in the ecosystem. Visa is not a financial institution and does not issue cards, extend credit or set rates and fees for account holders of Visa products. In most cases, account holder and merchant relationships belong to, and are managed by, Visa’s financial institution clients.

Consolidation and basis of presentation. The accompanying unaudited consolidated financial statements include the accounts of Visa and its consolidated entities and are presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The Company consolidates its majority-owned and controlled entities, including variable interest entities (VIEs) for which the Company is the primary beneficiary. The Company’s investments in VIEs have not been material to its unaudited consolidated financial statements as of and for the periods presented. Intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited consolidated financial statements are presented in accordance with U.S. Securities and Exchange Commission (SEC) requirements for Quarterly Reports on Form 10-Q and, consequently, do not include all of the annual disclosures required by U.S. GAAP. Reference should be made to Visa’s Annual Report on Form 10-K for the year ended September 30, ~~2022~~2023 for additional disclosures, including a summary of the Company’s significant accounting policies.

In the opinion of management, the accompanying unaudited consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented. The results of operations for interim periods are not necessarily indicative of results for the full year.

Use of estimates. The preparation of the accompanying unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates may change as new events occur and additional information is obtained, and will be recognized in the period in which such changes occur. Future actual results could differ materially from these estimates.

~~Recently Adopted Accounting Pronouncement.~~ ~~In March 2020,~~

Note 2—Acquisitions

On January 16, 2024, Visa acquired Pismo Holdings, a global cloud-native issuer processing and core banking platform, for $1.0 billion in cash. Due to the ~~Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, which provides optional expedients and exceptions~~limited amount of time since the acquisition date, the initial allocation of the purchase price is not yet complete. The Company expects to provide the initial purchase price allocation within its Form 10-Q for ~~applying U.S. GAAP to contracts, hedging relationships and other transactions that reference~~ the ~~London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because~~second quarter of ~~reference rate reform. Subsequently, the FASB also issued amendments to this standard. The amendments in the ASU are effective upon issuance through December 31,~~fiscal 2024. During the prior quarter, the Company adopted certain optional expedients provided in this ASU in relation to contract modifications and hedge accounting. The adoption did not have a material impact on the consolidated financial statements.

119

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

~~Note 2—Acquisitions~~

~~Pending Acquisition~~

In June 2023, Visa entered into a definitive agreement to acquire Pismo Holdings, a cloud-native issuer processing and core banking platform with operations in Latin America, Asia Pacific and Europe, for $1.0 billion in cash. This acquisition is subject to customary closing conditions, including applicable regulatory reviews and approvals.

Note 3—Revenues

The nature, amount, timing and uncertainty of the Company’s revenues and cash flows and how they are affected by economic factors are most appropriately depicted through the Company’s revenue categories and geographical markets. The following tables disaggregate the Company’s net revenues by revenue category and by geography:


		Three Months Ended June 30,				Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022		2023		2022				2023		2022
		(in millions)										(in millions)
Service revenues	Service revenues	$	3,668	$	3,189	$	10,950	$	9,903	Service revenues		$	3,915	$	3,511
Data processing revenues	Data processing revenues	4,105		3,579		11,751		10,673		Data processing revenues		4,356		3,827
International transaction revenues	International transaction revenues	2,920		2,560		8,466		6,942		International transaction revenues		3,019		2,797
Other revenues	Other revenues	597		517		1,735		1,440		Other revenues		692		587
Client incentives	Client incentives	(3,167)		(2,570)		(8,858)		(7,435)		Client incentives		(3,348)		(2,786)
Net revenues	Net revenues	$	8,123	$	7,275	$	24,044	$	21,523	Net revenues		$	8,634	$	7,936


		Three Months Ended June 30,				Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022		2023		2022				2023		2022
		(in millions)										(in millions)
U.S.	U.S.	$	3,443	$	3,170	$	10,550	$	9,427	U.S.		$	3,645	$	3,567
International	International	4,680		4,105		13,494		12,096		International		4,989		4,369
Net revenues	Net revenues	$	8,123	$	7,275	$	24,044	$	21,523	Net revenues		$	8,634	$	7,936

Remaining performance obligations are comprised of deferred revenues and contract revenues that will be invoiced and recognized as revenues in future periods primarily related to value added services. As of December 31, 2023, the remaining performance obligations were $3.2 billion. The Company expects approximately half to be recognized as revenues in the next two years and the remaining thereafter. However, the amount and timing of revenue recognition is affected by several factors, including contract modifications and terminations, which could impact the estimate of amounts allocated to remaining performance obligations and when such revenues could be recognized.

Note 4—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents

The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported inon the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:


		June 30, 2023		September 30, 2022			December 31, 2023		September 30, 2023
		(in millions)					(in millions)
Cash and cash equivalents	Cash and cash equivalents	$	15,590	$	15,689	Cash and cash equivalents	$	13,591	$	16,286
Restricted cash and restricted cash equivalents:	Restricted cash and restricted cash equivalents:					Restricted cash and restricted cash equivalents:
U.S. litigation escrow	U.S. litigation escrow	1,627		1,449		U.S. litigation escrow	1,616		1,764
Customer collateral	Customer collateral	2,907		2,342		Customer collateral	3,164		3,005
Prepaid expenses and other current assets	Prepaid expenses and other current assets	915		897		Prepaid expenses and other current assets	1,265		935
Cash, cash equivalents, restricted cash and restricted cash equivalents	Cash, cash equivalents, restricted cash and restricted cash equivalents	$	21,039	$	20,377	Cash, cash equivalents, restricted cash and restricted cash equivalents	$	19,636	$	21,990

1210

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

Note 5—U.S. and Europe Retrospective Responsibility Plans

U.S. Retrospective Responsibility Plan

Under the terms of the U.S. retrospective responsibility plan, the Company maintains an escrow account from which settlements of, or judgments in, certain litigation ~~referred to as the “U.S.~~(U.S. covered ~~litigation”~~litigation) are paid. The accrual related to the U.S. covered litigation could be either higher or lower than the U.S. litigation escrow account balance. See Note 13—Legal Matters.

The following table presents the changes in the restricted cash equivalents—U.S. litigation escrow account:


		Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022			2023		2022
		(in millions)					(in millions)
Balance at beginning of period		$	1,449	$	894
Balance as of beginning of period						Balance as of beginning of period	$	1,764	$	1,449
Deposits into the U.S. litigation escrow account	Deposits into the U.S. litigation escrow account	850		850		Deposits into the U.S. litigation escrow account	—		350

Payments to opt-out merchants(1), net of interest earned on escrow funds	Payments to opt-out merchants(1), net of interest earned on escrow funds	(672)		(261)		Payments to opt-out merchants(1), net of interest earned on escrow funds	(148)		(94)
Balance at end of period		$	1,627	$	1,483
Balance as of end of period						Balance as of end of period	$	1,616	$	1,705

(1)These payments are associated with the interchange multidistrict litigation. See Note 13—Legal Matters.

Europe Retrospective Responsibility Plan

Visa Inc., Visa International and Visa Europe are parties to certain existing and potential litigation relating to the setting of multilateral interchange fee rates in the Visa Europe territory (VE territory covered litigation). Under the terms of the Europe retrospective responsibility plan, the Company is entitled to recover certain losses resulting from VE territory covered litigation (VE territory covered losses) through a periodic adjustment to the class A common stock conversion rates applicable to the series B and C preferred stock. VE territory covered losses are recorded in athe contra-equity account ~~referred to as “right~~right to recover for covered ~~losses”~~losses within stockholders’ equity before the corresponding adjustment to the applicable conversion rate is effected. Adjustments to the conversion rate may be executed once in any six-month period unless a single, individual loss greater than €20 million is incurred, in which case, the six-month limitation does not apply. When the adjustment to the conversion rate is made, the amount previously recorded in ~~“right~~right to recover for covered ~~losses” as contra-equity~~losses is then recorded against the book value of the preferred stock within stockholders’ equity.

The following table presents the activities related to VE territory covered losses in preferred stock and right to recover for covered losses within stockholders’ equity:


	Three Months Ended December 31, 2023
	Preferred Stock				Right to Recover for Covered Losses
	Series B		Series C
	(in millions)
Balance as of beginning of period	$	441	$	801	$	(140)
VE territory covered losses incurred(1)	—		—		(24)
Recovery through conversion rate adjustment	(22)		(3)		25
Balance as of end of period	$	419	$	798	$	(139)

Table of Contents

VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

~~The following table presents the activities related to VE territory covered losses in preferred stock and “right to recover for covered losses” within stockholders’ equity:~~

Preferred Stock Right to Recover for Covered Losses
Series B Series C
(in millions)
Balance as of September 30, 2022 $ 460 $ 812 $ (35)
VE territory covered losses incurred(1)
— — (21)
Recovery through conversion rate adjustment(2)
(19) (11) 31
Balance as of June 30, 2023 $ 441 $ 801 $ (25)

Preferred Stock Right to Recover for Covered Losses
Series B Series C
(in millions)
Balance as of September 30, 2021 $ 1,071 $ 1,523 $ (133)
VE territory covered losses incurred(1)
— — (31)
Recovery through conversion rate adjustment (135) (6) 141
Balance as of June 30, 2022 $ 936 $ 1,517 $ (23)


	Three Months Ended December 31, 2022
	Preferred Stock				Right to Recover for Covered Losses
	Series B		Series C
	(in millions)
Balance as of beginning of period	$	460	$	812	$	(35)
VE territory covered losses incurred(1)	—		—		(8)
Recovery through conversion rate adjustment(2)	(7)		(7)		15
Balance as of end of period	$	453	$	805	$	(28)

(1)VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 13—Legal Matters.

(2)Adjustment to right to recover for covered losses for the conversion rate adjustment differs from the actual recovered amount due to differences in foreign exchange rates between the time the losses were incurred and the subsequent recovery through the conversion rate adjustment.

The following table presents the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred stock recorded ~~in stockholders’ equity~~ within the Company’s consolidated balance sheets:


		June 30, 2023				September 30, 2022					December 31, 2023				September 30, 2023
		As-converted Value of Preferred Stock(1),(2)		Book Value of Preferred Stock(1)		As-converted Value of Preferred Stock(1),(3)		Book Value of Preferred Stock(1)			As-converted Value of Preferred Stock(1),(2)		Book Value of Preferred Stock(1)		As-converted Value of Preferred Stock(1),(3)		Book Value of Preferred Stock(1)
		(in millions)									(in millions)
Series B preferred stock	Series B preferred stock	$	1,730	$	441	$	1,309	$	460	Series B preferred stock	$	1,875	$	419	$	1,676	$	441
Series C preferred stock	Series C preferred stock	2,721		801		2,044		812		Series C preferred stock	2,979		798		2,635		801
Total	Total	4,451		1,242		3,353		1,272		Total	4,854		1,217		4,311		1,242
Less: right to recover for covered losses	Less: right to recover for covered losses	(25)		(25)		(35)		(35)		Less: right to recover for covered losses	(139)		(139)		(140)		(140)
Total recovery for covered losses available	Total recovery for covered losses available	$	4,426	$	1,217	$	3,318	$	1,237	Total recovery for covered losses available	$	4,715	$	1,078	$	4,171	$	1,102

(1)Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.

(2)As of ~~June~~December 31, 2023, the as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the series B and C preferred stock outstanding, respectively; (b) 2.903 and 3.625, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) $260.35, Visa’s class A common stock closing stock price.

(3)As of September 30, 2023, the as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the series B and C preferred stock outstanding, respectively; (b) 2.937 and 3.629, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) ~~$237.48, Visa’s class A common stock closing stock price.~~

~~(3)~~As of September 30, 2022, the as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the series B and C preferred stock outstanding, respectively; (b) 2.971 and 3.645, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) $177.65,$230.01, Visa’s class A common stock closing stock price.

1412

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

Note 6—Fair Value Measurements and Investments

Assets and Liabilities Measured at Fair Value on a Recurring Basis


		Fair Value Measurements Using Inputs Considered as								Fair Value Measurements Using Inputs Considered as
		Level 1				Level 2					Level 1				Level 2
		June 30, 2023		September 30, 2022		June 30, 2023		September 30, 2022					December 31, 2023		September 30, 2023		December 31, 2023		September 30, 2023
		(in millions)								(in millions)
Assets	Assets											Assets
Cash equivalents and restricted cash equivalents:	Cash equivalents and restricted cash equivalents:											Cash equivalents and restricted cash equivalents:
Money market funds	Money market funds	$	12,605	$	11,736	$	—	$	—			Money market funds	$	10,316	$	13,504	$	—	$	—

U.S. government-sponsored debt securities												U.S. government-sponsored debt securities	—		—		28		—
U.S. Treasury securities	U.S. Treasury securities	175		799		—		—				U.S. Treasury securities	95		301		—		—
Investment securities:	Investment securities:											Investment securities:
Marketable equity securities	Marketable equity securities	347		437		—		—				Marketable equity securities	397		339		—		—
U.S. government-sponsored debt securities	U.S. government-sponsored debt securities	—		—		1,153		457				U.S. government-sponsored debt securities	—		—		1,580		1,108
U.S. Treasury securities	U.S. Treasury securities	3,788		4,005		—		—				U.S. Treasury securities	5,837		4,316		—		—
Other current and non-current assets:	Other current and non-current assets:											Other current and non-current assets:
Money market funds	Money market funds	23		22		—		—				Money market funds	28		23		—		—
Derivative instruments	Derivative instruments	—		—		197		1,131				Derivative instruments	—		—		154		293
Total	Total	$	16,938	$	16,999	$	1,350	$	1,588			Total	$	16,673	$	18,483	$	1,762	$	1,401
Liabilities	Liabilities											Liabilities
Accrued compensation and benefits:	Accrued compensation and benefits:											Accrued compensation and benefits:
Deferred compensation liability	Deferred compensation liability	$	181	$	146	$	—	$	—			Deferred compensation liability	$	221	$	175	$	—	$	—
Accrued and other liabilities:	Accrued and other liabilities:											Accrued and other liabilities:
Derivative instruments	Derivative instruments	—		—		482		418				Derivative instruments	—		—		287		396
Total	Total	$	181	$	146	$	482	$	418			Total	$	221	$	175	$	287	$	396

Level 1 assets and liabilities. Money market funds, U.S. Treasury securities and marketable equity securities are classified as Level 1 within the fair value hierarchy, as fair value is based on unadjusted quoted prices in active markets for identical assets. The Company’s deferred compensation liability is measured at fair value based on marketable equity securities held under the deferred compensation plan.

Level 2 assets and liabilities. The fair value of U.S. government-sponsored debt securities, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. Derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data.

U.S. Government-sponsored Debt Securities and U.S. Treasury Securities

The amortized cost, unrealized gains and losses and fair value of debt securities were as follows:


		June 30, 2023									December 31, 2023
		Amortized Cost		Gross Unrealized				Fair Value			Amortized Cost		Gross Unrealized				Fair Value
				Gains		Losses							Gains		Losses
		(in millions)									(in millions)
U.S. government-sponsored debt securities	U.S. government-sponsored debt securities	$	1,155	$	—	$	(2)	$	1,153	U.S. government-sponsored debt securities	$	1,607	$	2	$	(1)	$	1,608
U.S. Treasury securities	U.S. Treasury securities	4,062		—		(99)		3,963		U.S. Treasury securities	5,956		19		(43)		5,932
Total	Total	$	5,217	$	—	$	(101)	$	5,116	Total	$	7,563	$	21	$	(44)	$	7,540

1513

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)


		September 30, 2022									September 30, 2023
		Amortized Cost		Gross Unrealized				Fair Value			Amortized Cost		Gross Unrealized				Fair Value
				Gains		Losses							Gains		Losses
		(in millions)									(in millions)
U.S. government-sponsored debt securities	U.S. government-sponsored debt securities	$	458	$	—	$	(1)	$	457	U.S. government-sponsored debt securities	$	1,109	$	1	$	(2)	$	1,108
U.S. Treasury securities	U.S. Treasury securities	4,937		—		(133)		4,804		U.S. Treasury securities	4,697		—		(80)		4,617
Total	Total	$	5,395	$	—	$	(134)	$	5,261	Total	$	5,806	$	1	$	(82)	$	5,725

Debt securities with unrealized losses for less than 12 months and 12 months or greater were as follows:


		June 30, 2023									December 31, 2023
		Less Than 12 Months				12 Months or Greater					Less Than 12 Months				12 Months or Greater
		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
		(in millions)									(in millions)
U.S. government-sponsored debt securities	U.S. government-sponsored debt securities	$	584	$	(2)	$	—	$	—	U.S. government-sponsored debt securities	$	424	$	(1)	$	—	$	—
U.S. Treasury securities	U.S. Treasury securities	1,524		(17)		2,165		(82)		U.S. Treasury securities	646		(2)		2,056		(41)
Total	Total	$	2,108	$	(19)	$	2,165	$	(82)	Total	$	1,070	$	(3)	$	2,056	$	(41)


		September 30, 2022					September 30, 2023
		Less Than 12 Months					Less Than 12 Months				12 Months or Greater
		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
		(in millions)					(in millions)
U.S. government-sponsored debt securities	U.S. government-sponsored debt securities	$	408	$	(1)	U.S. government-sponsored debt securities	$	412	$	(2)	$	50	$	—
U.S. Treasury securities	U.S. Treasury securities	3,507		(133)		U.S. Treasury securities	1,360		(12)		2,128		(68)
Total	Total	$	3,915	$	(134)	Total	$	1,772	$	(14)	$	2,178	$	(68)

The unrealized losses were primarily attributable to changes in interest rates.

The stated maturities of debt securities were as follows:


	~~June 30,~~December 31, 2023
	(in millions)
Due within one year	$	~~2,994~~4,731
Due after 1one year through 5five years	~~2,122~~2,809
Total	$	~~5,116~~7,540

Equity Securities

The Company’s non-marketable equity securities ~~are~~include investments in privately held companies without readily determinable ~~market~~fair values. These investments are measured at fair value on a non-recurring basis and are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity and the fact that significant inputs used to measure fair value are unobservable and require management’s judgment.

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

The following table summarizes the total carrying value of the Company’s non-marketable equity securities that were accounted for using the fair value measurement alternative and held as of ~~June 30,~~December 31, 2023, including the cumulative unrealized gains and losses:


	~~June 30,~~December 31, 2023
	(in millions)
Initial cost basis	$	~~764~~710
Adjustments:
Upward adjustments	909		~~899~~
Downward adjustments (including impairment)	(430)		~~(431)~~
Carrying amount ~~end of period~~	$	~~1,232~~1,189

Unrealized gains and losses included in the carrying value of the Company’s non-marketable equity securities accounted for using the fair value measurement alternative and still held as of ~~June 30,~~December 31, 2023 and 2022, respectively, were as follows:


		Three Months Ended June 30,				Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022		2023		2022				2023		2022
		(in millions)										(in millions)
Upward adjustments	Upward adjustments	$	75	$	5	$	94	$	231	Upward adjustments		$	9	$	17
Downward adjustments (including impairment)	Downward adjustments (including impairment)	$	—	$	(284)	$	(86)	$	(337)	Downward adjustments (including impairment)		$	—	$	—

For the three months ended ~~June 30,~~December 31, 2023 and 2022, the Company recognized net unrealized gains of ~~$96~~$36 million and net unrealized losses of $278 million, respectively, on marketable and non-marketable equity securities still held as of quarter end. For the nine months ended June 30, 2023 and 2022, the Company recognized net unrealized losses of $85 million and $262$102 million, respectively, on marketable and non-marketable equity securities still held as of quarter end.

Other Fair Value Disclosures

Debt. Debt instruments are measured at amortized cost on the Company’s consolidated balance sheets. The fair value of the debt instruments, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. As of ~~June~~December 31, 2023, the carrying value and estimated fair value of debt was $20.7 billion and $19.0 billion, respectively. As of September 30, 2023, the carrying value and estimated fair value of debt was ~~$20.6~~$20.5 billion and ~~$18.6 billion, respectively. As of September 30, 2022, the carrying value and estimated fair value of debt was $22.5 billion and $19.9~~$17.7 billion, respectively.

Other financial instruments not measured at fair value. As of ~~June 30,~~December 31, 2023, the carrying values of settlement receivable and payable and customer collateral are an approximate fair value due to their generally short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 in the fair value hierarchy.

Non-financial assets. Certain non-financial assets such as goodwill, intangible assets and property, equipment and technology are subject to non-recurring fair value measurements if they are deemed to be impaired. The Company performed its annual impairment review of its indefinite-lived intangible assets and goodwill as of February 1, 2023, and concluded there was no impairment as of that date. No recent events or changes in circumstances indicated that impairment existed as of ~~June 30,~~December 31, 2023.

1715

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

Note 7—Debt

The Company had outstanding debt as follows:


		June 30, 2023		September 30, 2022		Effective Interest Rate(1)			December 31, 2023		September 30, 2023		Effective Interest Rate(1)
		(in millions, except percentages)							(in millions, except percentages)
U.S. dollar notes	U.S. dollar notes							U.S. dollar notes
2.80% Senior Notes due December 2022		$	—	$	2,250	2.89	%
3.15% Senior Notes due December 2025	3.15% Senior Notes due December 2025	4,000		4,000		3.26	%	3.15% Senior Notes due December 2025	$	4,000	$	4,000	3.26	%
1.90% Senior Notes due April 2027	1.90% Senior Notes due April 2027	1,500		1,500		2.02	%	1.90% Senior Notes due April 2027	1,500		1,500		2.02	%
0.75% Senior Notes due August 2027	0.75% Senior Notes due August 2027	500		500		0.84	%	0.75% Senior Notes due August 2027	500		500		0.84	%
2.75% Senior Notes due September 2027	2.75% Senior Notes due September 2027	750		750		2.91	%	2.75% Senior Notes due September 2027	750		750		2.91	%
2.05% Senior Notes due April 2030	2.05% Senior Notes due April 2030	1,500		1,500		2.13	%	2.05% Senior Notes due April 2030	1,500		1,500		2.13	%
1.10% Senior Notes due February 2031	1.10% Senior Notes due February 2031	1,000		1,000		1.20	%	1.10% Senior Notes due February 2031	1,000		1,000		1.20	%
4.15% Senior Notes due December 2035	4.15% Senior Notes due December 2035	1,500		1,500		4.23	%	4.15% Senior Notes due December 2035	1,500		1,500		4.23	%
2.70% Senior Notes due April 2040	2.70% Senior Notes due April 2040	1,000		1,000		2.80	%	2.70% Senior Notes due April 2040	1,000		1,000		2.80	%
4.30% Senior Notes due December 2045	4.30% Senior Notes due December 2045	3,500		3,500		4.37	%	4.30% Senior Notes due December 2045	3,500		3,500		4.37	%
3.65% Senior Notes due September 2047	3.65% Senior Notes due September 2047	750		750		3.73	%	3.65% Senior Notes due September 2047	750		750		3.73	%
2.00% Senior Notes due August 2050	2.00% Senior Notes due August 2050	1,750		1,750		2.09	%	2.00% Senior Notes due August 2050	1,750		1,750		2.09	%
Euro notes	Euro notes							Euro notes
1.50% Senior Notes due June 2026	1.50% Senior Notes due June 2026	1,478		1,325		1.71	%	1.50% Senior Notes due June 2026	1,497		1,434		1.71	%
2.00% Senior Notes due June 2029	2.00% Senior Notes due June 2029	1,094		982		2.13	%	2.00% Senior Notes due June 2029	1,109		1,062		2.13	%
2.375% Senior Notes due June 2034	2.375% Senior Notes due June 2034	711		638		2.53	%	2.375% Senior Notes due June 2034	721		690		2.53	%
Total debt	Total debt	21,033		22,945				Total debt	21,077		20,936
Unamortized discounts and debt issuance costs	Unamortized discounts and debt issuance costs	(164)		(173)				Unamortized discounts and debt issuance costs	(156)		(159)
Hedge accounting fair value adjustments(2)	Hedge accounting fair value adjustments(2)	(309)		(322)				Hedge accounting fair value adjustments(2)	(218)		(314)
Total carrying value of debt	Total carrying value of debt	$	20,560	$	22,450			Total carrying value of debt	$	20,703	$	20,463

Reported as:	Reported as:							Reported as:
Current maturities of debt	Current maturities of debt	$	—	$	2,250			Current maturities of debt	$	—	$	—
Long-term debt	Long-term debt	20,560		20,200				Long-term debt	20,703		20,463
Total carrying value of debt	Total carrying value of debt	$	20,560	$	22,450			Total carrying value of debt	$	20,703	$	20,463

(1)Effective interest rates disclosed do not reflect hedge accounting adjustments.

(2)Represents the fair value of interest rate swap agreements entered into on a portion of the outstanding senior notes.

~~Senior Notes~~

~~During the nine months ended June 30, 2023, the Company repaid $2.25 billion of principal upon maturity of its senior notes due December 2022.~~

~~Non-derivative Financial Instrument Designated as a Net Investment Hedge~~

During the nine months ended June 30, 2023, the Company designated €1.8 billion of the Euro-denominated fixed-rate senior notes (Euro Notes) issued in June 2022 as a hedge against a portion of the Company’s Euro-denominated net investment in Visa Europe. As of June 30, 2023, all of the €3.0 billion Euro Notes were designated as a net investment hedge.

~~Credit Facility~~

In May 2023, the Company entered into an amended and restated credit agreement for a 5 year, unsecured $7.0 billion revolving credit facility, which will expire in May 2028. Interest on borrowings will be charged at the applicable reference rate or an alternative base rate as defined in the credit agreement based on the currency and

~~Table of Contents~~

~~VISA INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)~~

type of the borrowing, plus an applicable margin based on the applicable credit rating of the Company’s senior unsecured long-term debt. The Company has agreed to pay a commitment fee which will fluctuate based on such applicable rating of the Company. As of June 30, 2023, the Company was in compliance with all related covenants. This credit facility is maintained to ensure the integrity of the payment card settlement process and for general corporate purposes. As of June 30, 2023 and September 30, 2022, the Company had no amounts outstanding under the credit facility.

Note 8—Settlement Guarantee Management

The Company indemnifies its clients for settlement losses suffered due to failure of any other client to fund its settlement obligations in accordance with the Visa operating rules. This indemnification creates settlement risk for the Company due to the difference in timing between the date of a payment transaction and the date of subsequent settlement.

Historically, the Company has experienced minimal losses as a result of its settlement risk guarantee. However, the Company’s future obligations, which could be material under its guarantees, are not determinable as they are dependent upon future events.

The Company’s settlement exposure is limited to the amount of unsettled Visa payment transactions at any point in time, which vary significantly day to day. During the ~~nine~~three months ended ~~June 30,~~December 31, 2023, the Company’s maximum daily settlement exposure was ~~$125.6~~$133.2 billion and the average daily settlement exposure was ~~$76.3~~$83.0 billion.

Table of Contents

VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

The Company maintains and regularly reviews global settlement risk policies and procedures to manage settlement exposure, which may require clients to post collateral if certain credit standards are not met. The Company held the following collateral to manage settlement exposure:


		June 30, 2023		September 30, 2022			December 31, 2023		September 30, 2023
		(in millions)					(in millions)
Restricted cash and restricted cash equivalents		$	2,907	$	2,342
Pledged securities at market value		408		213
Restricted cash						Restricted cash	$	3,164	$	3,005
Pledged securities						Pledged securities	504		411
Letters of credit	Letters of credit	1,717		1,582		Letters of credit	1,779		1,738
Guarantees	Guarantees	1,094		950		Guarantees	1,054		1,047
Total	Total	$	6,126	$	5,087	Total	$	6,501	$	6,201

~~Table of Contents~~

~~VISA INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)~~

Note 9—Stockholders’ Equity

As-converted class A common stock. The number of shares of each series and class, and the number of shares of class A common stock on an as-converted basis were as follows:


		June 30, 2023					September 30, 2022						December 31, 2023					September 30, 2023
		Shares Outstanding		Conversion Rate Into Class A Common Stock		As-converted Class A Common Stock(1)	Shares Outstanding		Conversion Rate Into Class A Common Stock		As-converted Class A Common Stock(1)		Shares Outstanding		Conversion Rate Into Class A Common Stock		As-converted Class A Common Stock(1)	Shares Outstanding		Conversion Rate Into Class A Common Stock		As-converted Class A Common Stock(1)
		(in millions, except conversion rate)											(in millions, except conversion rate)
Series A preferred stock	Series A preferred stock	—	(2)	100.0000		8	—	(2)	100.0000		16	Series A preferred stock	—	(2)	100.0000		6	—	(2)	100.0000		7
Series B preferred stock	Series B preferred stock	2		2.9370		7	2		2.9710		7	Series B preferred stock	2		2.9030		7	2		2.9370		7
Series C preferred stock	Series C preferred stock	3		3.6290		11	3		3.6450		12	Series C preferred stock	3		3.6250		11	3		3.6290		11
Class A common stock	Class A common stock	1,607		—		1,607	1,635		—		1,635	Class A common stock	1,582		—		1,582	1,594		—		1,594
Class B common stock	Class B common stock	245		1.5902	(3)	390	245		1.6059	(3)	394	Class B common stock	245		1.5875	(3)	390	245		1.5875	(3)	390
Class C common stock	Class C common stock	10		4.0000		38	10		4.0000		39	Class C common stock	9		4.0000		38	10		4.0000		38
Total	Total					2,061					2,103	Total					2,034					2,047

(1)Figures in the table may not recalculate exactly due to rounding. As-converted class A common stock is calculated based on unrounded numbers.

(2)The number of shares outstanding was less than one million.

(3)The class B to class A common stock conversion rate is presented on a rounded basis. Conversion calculations for dividend payments are based on a conversion rate rounded to the tenth decimal.

Reduction in as-converted shares. The following table presents the reduction in the number of as-converted class B common stock after deposits into the U.S. litigation escrow account under the U.S. retrospective responsibility plan:


		Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022			2023		2022
		(in millions, except per share data)					(in millions, except per share data)
Reduction in equivalent number of class A common stock	Reduction in equivalent number of class A common stock	4		4		Reduction in equivalent number of class A common stock	—		2
Effective price per share(1)	Effective price per share(1)	$	219.70	$	205.06	Effective price per share(1)	$	—	$	209.14
Deposits into the U.S. litigation escrow account	Deposits into the U.S. litigation escrow account	$	850	$	850	Deposits into the U.S. litigation escrow account	$	—	$	350

(1)~~Effective price per share for the period represents the weighted-average price calculated using the effective prices per share of the respective adjustments made during the period.~~ Effective price per share for each adjustment is calculated using the volume-weighted average price of the Company’s class A common stock over a pricing period in accordance with the Company’s current certificate of incorporation.

2017

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

The following table presents the reduction in the number of as-converted series B and C preferred stock after the Company recovered VE territory covered losses through conversion rate adjustments under the Europe retrospective responsibility plan:


		Nine Months Ended June 30, 2023						Nine Months Ended June 30, 2022						Three Months Ended December 31, 2023						Three Months Ended December 31, 2022
		Series B			Series C			Series B		Series C				Series B			Series C			Series B			Series C
		(in millions, except per share data)												(in millions, except per share data)
Reduction in equivalent number of class A common stock	Reduction in equivalent number of class A common stock	—		(1)	—		(1)	1		—		(1)	Reduction in equivalent number of class A common stock	—		(1)	—		(1)	—		(1)	—		(1)
Effective price per share(2)	Effective price per share(2)	$	219.12		$	215.28		$	203.08	$	202.55		Effective price per share(2)	$	254.32		$	254.32		$	211.34		$	211.34
Recovery through conversion rate adjustment	Recovery through conversion rate adjustment	$	19		$	11		$	135	$	6		Recovery through conversion rate adjustment	$	22		$	3		$	7		$	7

(1)The reduction in equivalent number of shares of class A common stock was less than one million shares.

(2)~~Effective price per share for the period represents the weighted-average price calculated using the effective prices per share of the respective adjustments made during the period.~~ Effective price per share for each adjustment is calculated using the volume-weighted average price of the Company’s class A common stock over a pricing period in accordance with the Company’s current certificates of designations for its series B and C preferred stock.

Common stock repurchases. The following table presents share repurchases in the open market:


		Three Months Ended June 30,				Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022		2023		2022				2023		2022
		(in millions, except per share data)										(in millions, except per share data)
Shares repurchased in the open market(1)	Shares repurchased in the open market(1)	13		12		39		46		Shares repurchased in the open market(1)		15		16
Average repurchase cost per share(2)	Average repurchase cost per share(2)	$	229.00	$	202.81	$	214.44	$	208.30	Average repurchase cost per share(2)		$	238.47	$	197.69
Total cost(2)	Total cost(2)	$	3,064	$	2,433	$	8,395	$	9,486	Total cost(2)		$	3,609	$	3,115

(1)Shares repurchased in the open market reflect repurchases that settled during the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 and ~~2022, respectively.~~2022. All shares repurchased in the open market have been retired and constitute authorized but unissued shares.

(2)Figures in the table may not recalculate exactly due to rounding. Average repurchase cost per share and total cost are calculated based on unrounded numbers and include applicable taxes.

In October 2023 and 2022, the Company’s board of directors authorized ashare repurchase programs of $25.0 billion providing multi-year flexibility, and $12.0 billion, ~~share repurchase program. This authorization has~~respectively. These authorizations have no expiration date. As of ~~June 30,~~December 31, 2023, the Company’s share repurchase ~~program~~programs had remaining authorized funds of ~~$8.8~~$26.4 billion. All share repurchase programs authorized prior to October 2022 have been completed.

Class B common stock. On January 23, 2024, Visa’s common stockholders approved amendments to the Company’s certificate of incorporation authorizing Visa to implement an exchange offer program that would have the effect of releasing transfer restrictions on portions of the Company’s class B common stock. The certificate of incorporation amendments automatically redenominate all shares of class B common stock as class B-1 common stock with no changes to the par value, conversion features, rights and privileges of the class B common stock. The amendments also authorized new classes of class B common stock that will only be issuable in connection with an exchange offer where a preceding class of B common stock was tendered in exchange and retired. The new authorization will have no impact to outstanding diluted earnings per class A common stock.

Dividends. During the three months ended ~~June 30,~~December 31, 2023 and 2022, the Company declared and paid dividends of ~~$937 million~~$1.1 billion and ~~$798~~$945 million, respectively. ~~During the nine months ended June 30, 2023 and 2022, the Company declared and paid dividends of $2.8 billion and $2.4 billion, respectively.~~ On ~~July 25, 2023,~~January 23, 2024, the Company’s board ~~of directors~~ declared a quarterly cash dividend of ~~$0.45~~$0.52 per share of class A common stock (determined in the case of class BB-1 and C common stock and series A, B and C preferred stock on an as-converted basis), payable on ~~September~~March 1, ~~2023,~~2024, to all holders of record as of ~~August 11, 2023.~~February 9, 2024.

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

Note 10—Earnings Per Share

The following table presents earnings per share for the three months ended ~~June 30,~~December 31, 2023:


		Basic Earnings Per Share					Diluted Earnings Per Share							Basic Earnings Per Share					Diluted Earnings Per Share
		Income Allocation (A)(1)		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)(2)		Income Allocation (A)(1)		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)(2)			Income Allocation (A)(1)		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)(2)		Income Allocation (A)(1)		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)(2)
		(in millions, except per share data)												(in millions, except per share data)
Class A common stock	Class A common stock	$	3,228	1,614	$	2.00	$	4,156	2,080	(3)	$	2.00	Class A common stock	$	3,792	1,584	$	2.39	$	4,890	2,045	(3)	$	2.39
Class B common stock	Class B common stock	785		245	$	3.20	$	784	245		$	3.19	Class B common stock	933		245	$	3.80	$	932	245		$	3.80
Class C common stock	Class C common stock	77		10	$	8.00	$	76	10		$	7.99	Class C common stock	91		9	$	9.58	$	91	9		$	9.57
Participating securities	Participating securities	66		Not presented	Not presented		$	66	Not presented		Not presented		Participating securities	74		Not presented	Not presented		$	74	Not presented		Not presented
Net income	Net income	$	4,156										Net income	$	4,890

~~The following table presents earnings per share for the nine months ended June 30, 2023:~~

Basic Earnings Per Share Diluted Earnings Per Share
Income
Allocation
(A)(1)
Weighted-
Average
Shares
Outstanding (B)
Earnings per
Share =
(A)/(B)(2)
Income
Allocation
(A)(1)
Weighted-
Average
Shares
Outstanding (B)
Earnings per
Share =
(A)/(B)(2)
(in millions, except per share data)
Class A common stock $ 9,778 1,623 $ 6.03 $ 12,592 2,092 (3) $ 6.02
Class B common stock 2,369 245 $ 9.65 $ 2,366 245 $ 9.64
Class C common stock 233 10 $ 24.10 $ 233 10 $ 24.08
Participating securities 212 Not presented Not presented $ 211 Not presented Not presented
Net income $ 12,592

The following table presents earnings per share for the three months ended ~~June 30,~~December 31, 2022:

Basic Earnings Per Share Diluted Earnings Per Share
Income
Allocation
(A)(1)
Weighted-
Average
Shares
Outstanding (B)
Earnings per
Share =
(A)/(B)(2)
Income
Allocation
(A)(1)
Weighted-
Average
Shares
Outstanding (B)
Earnings per
Share =
(A)/(B)(2)
(in millions, except per share data)
Class A common stock $ 2,634 1,642 $ 1.60 $ 3,411 2,129 (3) $ 1.60
Class B common stock 637 245 $ 2.59 $ 636 245 $ 2.59
Class C common stock 64 10 $ 6.42 $ 64 10 $ 6.41
Participating securities 76 Not presented Not presented $ 76 Not presented Not presented
Net income $ 3,411

~~Table of Contents~~

~~VISA INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)~~

~~The following table presents earnings per share for the nine months ended June 30, 2022:~~


		Basic Earnings Per Share					Diluted Earnings Per Share							Basic Earnings Per Share					Diluted Earnings Per Share
		Income Allocation (A)(1)		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)(2)		Income Allocation (A)(1)		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)(2)			Income Allocation (A)(1)		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)(2)		Income Allocation (A)(1)		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)(2)
		(in millions, except per share data)												(in millions, except per share data)
Class A common stock	Class A common stock	$	8,518	1,655	$	5.15	$	11,017	2,143	(3)	$	5.14	Class A common stock	$	3,243	1,629	$	1.99	$	4,179	2,102	(3)	$	1.99
Class B common stock	Class B common stock	2,046		245	$	8.33	$	2,044	245		$	8.33	Class B common stock	784		245	$	3.19	$	784	245		$	3.19
Class C common stock	Class C common stock	207		10	$	20.58	$	207	10		$	20.56	Class C common stock	78		10	$	7.96	$	78	10		$	7.95
Participating securities	Participating securities	246		Not presented	Not presented		$	246	Not presented		Not presented		Participating securities	74		Not presented	Not presented		$	74	Not presented		Not presented
Net income	Net income	$	11,017										Net income	$	4,179

(1)The weighted-average number of shares of as-converted class B common stock used in the income allocation was ~~393~~390 million and 394 million for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 and ~~397 million and 398 million for the three and nine months ended June 30,~~ 2022, respectively. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 38 million and 39 million for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 ~~respectively,~~ and ~~40 million for the three and nine months ended June 30, 2022.~~2022, respectively. The weighted-average number of shares of preferred stock included within participating securities was 86 million and 1013 million of as-converted series A preferred stock for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 ~~respectively,~~ and ~~6 million of as-converted series A preferred stock for the three and nine months ended June 30,~~ 2022, respectively, 7 million of as-converted series B preferred stock for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 and ~~15 million and 16 million of as-converted series B preferred stock for the three and nine months ended June 30,~~ 2022 ~~respectively~~ and 11 million of as-converted series C preferred stock for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 and ~~22 million of as-converted series C preferred stock for the three and nine months ended June 30,~~ 2022.

(2)Figures in the table may not recalculate exactly due to rounding. Basic and diluted earnings per share are calculated based on unrounded numbers.

(3)Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The common stock equivalents are not material for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 and 2022.

Note 11—Share-based Compensation

The following table presents the equity awards granted to employees and non-employee directors under the amended and restated 2007 Equity Incentive Compensation Plan (EIP) during the ~~nine~~three months ended ~~June 30,~~December 31, 2023:


		Granted	Weighted-Average Grant Date Fair Value		Weighted-Average Exercise Price			Granted	Weighted-Average Grant Date Fair Value		Weighted-Average Exercise Price
Non-qualified stock options	Non-qualified stock options	798,017	$	58.56	$	211.09	Non-qualified stock options	722,695	$	62.55	$	249.56
Restricted stock units	Restricted stock units	3,130,396	$	210.81			Restricted stock units	2,735,697	$	249.56
Performance-based shares(1)	Performance-based shares(1)	551,818	$	221.32			Performance-based shares(1)	528,008	$	281.85

(1)Represents the maximum number of performance-based shares which could be earned.

For the three months ended June 30, 2023 and 2022, the Company recorded share-based compensation expense related to the EIP of $184 million and $145 million, respectively. For the nine months ended June 30, 2023 and 2022, the Company recorded share-based compensation expense related to the EIP of $568 million and $447 million, respectively.

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

For the three months ended December 31, 2023 and 2022, the Company recorded share-based compensation cost related to the EIP of $200 million and $170 million, respectively.

Note 12—Income Taxes

For the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 and 2022, the effective income tax rates were 19% and ~~18%, respectively, and for the three and nine months ended June 30, 2022, the effective income tax rates were 11% and 17%~~16%, respectively. The difference in the effective tax rates is primarily due to ~~the following:~~

•~~During the nine months ended June 30, 2023,~~ a $142 million tax benefit ~~related to prior years~~recognized during the three months ended December 31, 2022 due to the reassessment of an uncertain tax position as a result of new information obtained during an ongoing tax ~~examination; and~~examination.

•During the three months ended ~~June 30, 2022, a $176 million tax benefit related to prior years due to a decrease in the state apportionment ratio as a result of a tax position taken related to a ruling.~~

~~During the three and nine months ended June 30,~~December 31, 2023, the Company’s gross unrecognized tax benefits increased by ~~$615 million and $593 million, respectively.~~$113 million. The Company’s net unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate, increased by ~~$315 million and $192 million, respectively.~~$29 million. The change in unrecognized tax benefits is related to various tax positions across several ~~jurisdictions, including refund claims~~jurisdictions.

In January 2024, a resolution was reached regarding India tax assessments for years falling within the period from 2010 to 2019. As a result, the Company filed ~~during the quarter. Additionally, the nine month period reflects the change in unrecognized tax benefits related~~to withdraw appeals to the ~~reassessment mentioned above.~~appellate authorities for these years.

Effective through September 30, 2028, the Company’s operating hub in the Asia Pacific region is subject to a tax incentive in Singapore which is conditional upon meeting certain requirements.

The Company’s tax filings are subject to examination by U.S. federal, state and foreign taxing authorities. The timing and outcome of the final resolutions of the various ongoing income tax examinations and refund claims are ~~highly~~ uncertain. ItHowever, it is ~~not~~ reasonably possible ~~to estimate~~that the ~~increase or decrease in~~Company’s net unrecognized tax benefits ~~within~~could decrease by approximately $400 million in the next ~~twelve~~12 months.

Note 13—Legal Matters

The Company is party to various legal and regulatory proceedings. Some of these proceedings involve complex claims that are subject to substantial uncertainties and unascertainable damages. For those proceedings where a loss is determined to be only reasonably possible or probable but not estimable, the Company has disclosed the nature of the claim. Additionally, unless otherwise disclosed below with respect to these proceedings, the Company cannot provide an estimate of the possible loss or range of loss. Although the Company believes that it has strong defenses for the litigation and regulatory proceedings described below, it could, in the future, incur judgments or fines or enter into settlements of claims that could have a material adverse effect on the Company’s financial position, results of operations or cash flows. From time to time, the Company may engage in settlement discussions or mediations with respect to one or more of its outstanding litigation matters, either on its own behalf or collectively with other parties.

The litigation accrual is an estimate and is based on management’s understanding of its litigation profile, the specifics of each case, advice of counsel to the extent appropriate and management’s best estimate of incurred loss as of the balance sheet date.

The following table summarizes the activity related to accrued litigation:


		Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022			2023		2022
		(in millions)					(in millions)
Balance at beginning of period		$	1,456	$	983
Balance as of beginning of period						Balance as of beginning of period	$	1,751	$	1,456
Provision for uncovered legal matters	Provision for uncovered legal matters	1		2		Provision for uncovered legal matters	10		—
Provision for covered legal matters	Provision for covered legal matters	808		878		Provision for covered legal matters	22		347

Payments for legal matters	Payments for legal matters	(720)		(377)		Payments for legal matters	(312)		(101)
Balance at end of period		$	1,545	$	1,486
Balance as of end of period						Balance as of end of period	$	1,471	$	1,702

Accrual Summary—U.S. Covered Litigation

Visa Inc., Visa U.S.A. and Visa International are parties to certain legal proceedings that are covered by the ~~U.S. retrospective responsibility plan, which the Company refers to as the U.S. covered litigation. An accrual for the~~

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

U.S. retrospective responsibility plan, which the Company refers to as the U.S. covered litigation. An accrual for the U.S. covered litigation and a charge to the litigation provision are recorded when a loss is deemed to be probable and reasonably estimable. In making this determination, the Company evaluates available information, including but not limited to actions taken by the Company’s litigation committee. The total accrual related to the U.S. covered litigation could be either higher or lower than the escrow account balance. See further discussion below under U.S. Covered Litigation and Note 5—U.S. and Europe Retrospective Responsibility Plans.

The following table summarizes the accrual activity related to U.S. covered litigation:

Nine Months Ended
June 30,
2023 2022
(in millions)
Balance at beginning of period $ 1,441 $ 881
Provision for interchange multidistrict litigation 797 861
Payments for U.S. covered litigation (699) (262)
Balance at end of period $ 1,539 $ 1,480

During the three and nine months ended June 30, 2023, the Company recorded additional accruals of $456 million and $797 million, respectively, and deposited $500 million and $850 million, respectively, into the U.S. litigation escrow account to address claims associated with the interchange multidistrict litigation. The U.S. covered litigation accrual balance is consistent with the Company’s best estimate of its share of a probable and reasonably estimable loss with respect to the U.S. covered litigation. While this estimate is consistent with the Company’s view of the current status of the litigation, the probable and reasonably estimable loss or range of such loss could materially vary based on developments in the litigation. The Company will continue to consider and reevaluate this estimate in light of the substantial uncertainties with respect to the litigation. The Company is unable to estimate a potential loss or range of loss, if any, at trial if negotiated resolutions cannot be reached.


	Three Months Ended December 31,
	2023		2022
	(in millions)
Balance as of beginning of period	$	1,621	$	1,441
Provision for interchange multidistrict litigation	—		341

Payments for U.S. covered litigation	(160)		(101)
Balance as of end of period	$	1,461	$	1,681

Accrual Summary—VE Territory Covered Litigation

Visa Inc., Visa International and Visa Europe are parties to certain legal proceedings that are covered by the Europe retrospective responsibility plan. Unlike the U.S. retrospective responsibility plan, the Europe retrospective responsibility plan does not have an escrow account that is used to fund settlements or judgments. The Company is entitled to recover VE territory covered losses through periodic adjustments to the conversion rates applicable to the series B and C preferred stock. An accrual for the VE territory covered losses and a reduction to stockholders’ equity will be recorded when the loss is deemed to be probable and reasonably estimable. See further discussion below under VE Territory Covered Litigation and Note 5—U.S. and Europe Retrospective Responsibility Plans.

The following table summarizes the accrual activity related to VE territory covered litigation:


		Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022			2023		2022
		(in millions)					(in millions)
Balance at beginning of period		$	11	$	102
Balance as of beginning of period						Balance as of beginning of period	$	110	$	11
Provision for VE territory covered litigation	Provision for VE territory covered litigation	11		17		Provision for VE territory covered litigation	22		6
Payments for VE territory covered litigation	Payments for VE territory covered litigation	(19)		(114)		Payments for VE territory covered litigation	(126)		—
Balance at end of period		$	3	$	5
Balance as of end of period						Balance as of end of period	$	6	$	17

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~~VISA INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)~~

U.S. Covered Litigation

Interchange Multidistrict Litigation (MDL) - ~~Putative~~ Class Actions

On ~~March 15,~~December 4, 2023, plaintiffs in the ~~U.S. Court of Appeals~~two actions led, respectively, by Hayley Lanning and Camp Grounds Coffee, served a motion for ~~the Second Circuit affirmed the final approval of the Amended Settlement Agreement by the district court.~~partial summary judgment. On January 8, 2024, defendants’ motions for summary judgment under Ohio v. American Express were granted in part and denied in part.

Interchange Multidistrict Litigation (MDL) - Individual Merchant Actions

Visa has reached settlements with a number of merchants representing approximately ~~70%~~73% of the Visa-branded payment card sales volume of merchants who opted out of the Amended Settlement Agreement with the Damages Class plaintiffs. ~~Additional summary judgment motions were filed by plaintiffs and~~

On November 1, 2023, defendants ~~in an individual merchant action.~~

~~On July 14, 2023, Block, Inc. filed~~served a lawsuit against Visa Inc., Visa U.S.A., Visa International, Mastercard Incorporated, and Mastercard International Incorporated in the U.S. District Court for the Eastern District of New York, generally pursuing claims on allegations similarmotion to ~~those raised in MDL 1720. Square, a business unit of Block, Inc., previously submitted a request to opt out of~~enforce the Amended Settlement ~~Agreement. The parties have requested reassignment~~Agreement, or in the alternative for summary judgment, regarding claims in the actions brought by certain plaintiffs in their capacity as payment facilitators.On December 4, 2023, plaintiffs in certain of the ~~case to the judge presiding over MDL 1720~~ individual merchant actions served a motion

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VISA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)

for ~~inclusion~~partial summary judgment or a joinder in ~~MDL 1720.~~

~~Consumer Interchange Litigation~~

On December 30, 2022, a putative class action was filed in California state court against Visa, Mastercard, and certain financial institutions on behalf of all Visa and Mastercard cardholders in California who made a purchase using a Visa-branded or Mastercard-branded payment card in California from January 1, 2004. Plaintiffs primarily allege a conspiracy to fix interchange fees and seek injunctive relief, attorneys’ fees and damages as direct and indirect purchasers based on alleged violations of California law.partial summary judgment motions. On January ~~11, 2023, plaintiffs filed an amended complaint asserting the same claims as asserted~~8, 2024, defendants’ motions for summary judgment under Ohio v. American Express were granted in the prior complaint. On January 30, 2023, Visa removed the action to federal court. On February 10, 2023, the Judicial Panel on Multidistrict Litigation issued an order transferring the case to MDL 1720. On June 15, 2023, plaintiffs’ motion to remand the case to California state court waspart and denied ~~and plaintiffs have appealed.~~in part.

VE Territory Covered Litigation

Europe Merchant Litigation

Since July 2013, proceedings have been commenced by more than ~~1,100~~1,150 Merchants (the capitalized term “Merchant” when used in this section, means a Merchant together with subsidiary/affiliate companies that are party to the same claim) against Visa Europe, Visa Inc. and other Visa subsidiaries in the UK and other countries primarily relating to interchange rates in Europe and in some cases relating to fees charged by Visa and certain Visa rules. As of the filing date, Visa has settled the claims asserted by over ~~175~~475 Merchants, and there are approximately ~~900~~600 Merchants with outstanding claims. In addition, over 30 additional Merchants have threatened to commence similar proceedings. Standstill agreements have been entered into with respect to some of those threatened Merchant claims, several of which have been settled.

Other Litigation

MiCamp Solutions

On ~~June~~December 8, 2023, ~~the UK Competition Appeal Tribunal denied class certification~~a complaint was filed in the ~~two~~U.S. District Court for the Northern District of California by MiCamp Solutions, LLC against Visa on behalf of a purported class ~~action claims.~~

~~Other Litigation~~

~~Visa’s motion challenging jurisdiction in the class action regarding interchange on cross-border transactions~~of Independent Sales Organizations (ISOs) and their merchant customers and a purported subclass of ISOs.The complaint alleges violations of federal and state antitrust laws, state data privacy laws, and the ~~Honor All Cards rule in Israel was denied.~~

~~Table~~constitution, based on, among other things, Visa’s interchange fees and its assessment of ~~Contents~~fees for non-compliance with its surcharge rules.The complaint seeks to recover damages and to enjoin the enforcement of Visa’s default interchange and surcharge rules, among other things.

~~VISA INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)~~

~~Other Litigation~~

~~U.S. ATM Access Fee Litigation~~

~~On July 25, 2023, the U.S. Court of Appeals for the District of Columbia Circuit affirmed the district court’s class certification decisions.~~

~~European Commission Staged Digital Wallets Investigation~~

~~On February 16, 2023, the European Commission (EC) notified Visa that the matter has been closed.~~

~~German ATM Litigation~~

~~On July 6, 2023, one of the challenges to the jurisdiction of the German courts was denied.~~

~~EMV Chip Liability Shift~~

~~On November 30, 2022, Visa, jointly with other defendants, served a motion for summary judgment regarding the claims in the amended complaint and a motion to decertify the class.~~

~~U.S. Department of Justice Civil Investigative Demand (2021)~~

On January 4, 2023 and May 2, 2023, the Antitrust Division of the U.S. Department of Justice (Division) issued further Civil Investigative Demands seeking additional documents and information focusing on U.S. debit and competition with other payment methods and networks. Visa is cooperating with the Division in connection with the investigation.

~~Foreign Currency Exchange Rate Litigation~~Mirage Wine + Spirit’s Inc.

On December ~~21, 2022, plaintiffs~~14, 2023, a putative class action was filed ~~a third amended complaint asserting the same claims as asserted~~ in the ~~prior complaints.~~U.S. District Court for the Southern District of Illinois by Mirage Wine + Spirit’s Inc. against Apple Inc., Visa Inc. and Mastercard Incorporated on behalf of certain merchants in the United States that accepted Apple Pay as a method of payment at the physical point-of-sale from December 14, 2019. Plaintiff alleges a conspiracy under which Apple agreed not to enter a purported market for point-of-sale payment card networks services and seeks damages, injunctive relief and attorneys’ fees based on alleged violations of section 1 of the Sherman Act. On ~~February 3, 2023,~~January 5, 2024, Visa ~~filed a motion~~requested transfer of the action to ~~dismiss~~ the ~~third amended complaint.~~

~~European Commission Client Incentive Agreements Investigation~~

~~On December 2, 2022,~~U.S. District Court for the ~~EC informed Visa that it had opened a preliminary investigation into Visa’s incentive agreements with clients. Visa is cooperating~~Eastern District of New York for coordinated or consolidated pretrial proceedings with the ~~EC in connection with the investigation.~~Interchange Multidistrict Litigation.

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ITEM 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations

This management’s discussion and analysis provides a review of the results of operations, financial condition and liquidity and capital resources of Visa Inc. and its subsidiaries (Visa, we, us, our or the Company) on a historical basis and outlines the factors that have affected recent earnings, as well as those factors that may affect future earnings. The following discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and related notes included in Item 1—Financial Statementsof this report.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, the impact on our future financial position, results of operations and cash ~~flows as a result~~flows; the implementation of the ~~war in Ukraine; the ongoing effects of the COVID-19 pandemic, including the resumption of international travel;~~exchange offer program; prospects, developments, strategies and growth of our business; anticipated expansion of our products in certain countries; industry developments; anticipated timing and benefits of our acquisitions; expectations regarding litigation matters, investigations and proceedings; timing and amount of stock repurchases; sufficiency of sources of liquidity and funding; effectiveness of our risk management programs; and expectations regarding the impact of recent accounting pronouncements on our unaudited consolidated financial statements. Forward-looking statements generally are identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “projects,” “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. We describe risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, any of these forward-looking statements in our SEC filings, including our Annual Report on Form 10-K, for the year ended September 30, ~~2022,~~2023, and any 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.

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Overview

Visa is a global payments technology company that facilitates global commerce and money movement across more than 200 countries and territories among a global set of consumers, merchants, financial institutions and government entities through innovative technologies. We provide transaction processing services (primarily authorization, clearing and settlement) to our financial institution and merchant clients through VisaNet, our proprietary advanced transaction processing network. We offer products, solutions and ~~solutions~~services that facilitate secure, reliable and efficient money movement for all participants in the ecosystem.

Financial overview. A summary of our as-reported U.S. GAAP and non-GAAP operating results is as follows:


		Three Months Ended June 30,						Nine Months Ended June 30,							Three Months Ended December 31,
		2023		2022		% Change(1)		2023		2022		% Change(1)				2023		2022		% Change(1)
		(in millions, except percentages and per share data)														(in millions, except percentages and per share data)
Net revenues	Net revenues	$	8,123	$	7,275	12	%	$	24,044	$	21,523	12	%	Net revenues		$	8,634	$	7,936	9	%
Operating expenses	Operating expenses	$	3,099	$	3,127	(1	%)	$	8,594	$	7,797	10	%	Operating expenses		$	2,680	$	2,846	(6	%)
Net income	Net income	$	4,156	$	3,411	22	%	$	12,592	$	11,017	14	%	Net income		$	4,890	$	4,179	17	%
Diluted earnings per share	Diluted earnings per share	$	2.00	$	1.60	25	%	$	6.02	$	5.14	17	%	Diluted earnings per share		$	2.39	$	1.99	20	%

Non-GAAP operating expenses(2)	Non-GAAP operating expenses(2)	$	2,578	$	2,353	10	%	$	7,598	$	6,755	12	%	Non-GAAP operating expenses(2)		$	2,619	$	2,439	7	%
Non-GAAP net income(2)	Non-GAAP net income(2)	$	4,499	$	4,206	7	%	$	13,464	$	11,943	13	%	Non-GAAP net income(2)		$	4,938	$	4,581	8	%
Non-GAAP diluted earnings per share(2)	Non-GAAP diluted earnings per share(2)	$	2.16	$	1.98	9	%	$	6.44	$	5.57	16	%	Non-GAAP diluted earnings per share(2)		$	2.41	$	2.18	11	%

(1)Figures in the table may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.

(2)For a full reconciliation of our GAAP to non-GAAP financial results, see tables in Non-GAAP financial results below.

~~Disruption in the Banking Sector.~~ During the nine months ended June 30, 2023, certain U.S. banks failed, which caused volatility in the global financial markets. These events did not have an impact on our operating results. We continuously monitor and manage balance sheet and operational risks from clients in our portfolio, including their settlement obligations.

~~Russia & Ukraine.~~ During the quarter ended March 31, 2022, economic sanctions were imposed on Russia by the U.S., European Union, United Kingdom and other jurisdictions and authorities, impacting Visa and its clients. In March 2022, we suspended our operations in Russia and as a result, are no longer generating revenue from domestic and cross-border activities related to Russia. For the nine months ended June 30, 2022, total net revenues from Russia, including revenues driven by domestic as well as cross-border activities, was approximately 3% of our consolidated net revenues.

The continuing effects of the recent liquidity issues at certain financial institutions and the war in Ukraine are difficult to predict due to numerous uncertainties identified in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended September 30, 2022. ~~We will continue to evaluate the nature and extent of the impact to our business.~~

Highlights for the first ~~nine months~~quarter of fiscal ~~2023.~~2024. For the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, net revenues increased ~~12%~~9% over ~~each~~the prior-year comparable period, primarily due to the growth in nominal cross-border volume, processed transactions and nominal payments volume, partially offset by higher client incentives. During the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, exchange rate movements ~~lowered our~~did not have a material impact on net revenues ~~growth by approximately one percentage point and two percentage points, respectively.~~growth. See Results of Operations—Net Revenues below for further discussion.

For the three months ended ~~June 30,~~December 31, 2023, GAAP operating expenses decreased 1%6% over the prior-year comparable period, primarily ~~due to~~driven by lower litigation provision, ~~largely~~partially offset by higher expense related to personnel. For the nine months ended June 30, 2023, GAAP operating expenses increased 10% over the prior-year comparable period, primarily due to higher expense related to personnel.personnel expenses. See Results of Operations—Operating Expenses below for further discussion. During the ~~nine~~three months ended ~~June 30,~~December 31, 2023, exchange rate movements ~~lowered~~positively impacted our operating ~~expense growth~~expenses by approximately one percentage point.

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For the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, non-GAAP operating expenses increased ~~10% and 12%~~7% over the prior-year comparable ~~periods, respectively,~~period, primarily ~~due to~~driven by higher ~~expense related to personnel. For the nine months ended June 30, 2023, non-GAAP operating expenses also included higher general and administrative expense.~~personnel expenses.

~~Pending acquisition.~~Acquisition. ~~In June 2023,~~On January 16, 2024, we ~~entered into a definitive agreement to acquire~~acquired Pismo Holdings (Pismo), a global cloud-native issuer processing and core banking platform, ~~with operations in Latin America, Asia Pacific and Europe,~~ for $1.0 billion in cash. ~~This acquisition is subject to customary closing conditions, including applicable regulatory reviews and approvals.~~

~~Interchange multidistrict litigation.~~ During the nine months ended June 30, 2023, we recorded additional accruals of $797 million to address claims associated with the interchange multidistrict litigation. We also made deposits of $850 million into the U.S. litigation escrow account. See ~~Note 5—U.S. and Europe Retrospective Responsibility Plans~~ ~~and~~ ~~Note 13—Legal Matters~~ ~~to our unaudited consolidated financial statements~~.

Common stock repurchases. ~~In October 2022, our board of directors authorized a $12.0 billion share repurchase program~~.During the ~~nine~~three months ended ~~June 30,~~December 31, 2023, we repurchased 3915 million shares of our class A common stock in the open market for ~~$8.4~~$3.6 billion. As of ~~June 30,~~December 31, 2023, our share repurchase ~~program~~programs had remaining authorized funds of ~~$8.8~~$26.4 billion. See Note 9—Stockholders’ Equity to our unaudited consolidated financial statements.

Non-GAAP financial results. We use non-GAAP financial measures of our performance which exclude certain items which we believe are not representative of our continuing operations, as they may be non-recurring or have no cash impact, and may distort our longer-term operating trends. We consider non-GAAP measures useful to investors because they provide greater transparency into management’s view and assessment of our ongoing operating performance.

•Gains and losses on equity investments. Gains and losses on equity investments include periodic non-cash fair value adjustments and gains and losses upon sale of an investment. These long-term investments are strategic in nature and are primarily private company investments. Gains and losses ~~and the related tax impacts~~ associated with these

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investments are tied to the performance of the companies that we invest in and therefore do not correlate to the underlying performance of our business.

•Amortization of acquired intangible assets. Amortization of acquired intangible assets consists of amortization of intangible assets such as developed technology, customer relationships and brands acquired in connection with business combinations executed beginning in fiscal 2019. Amortization charges for our acquired intangible assets are non-cash and are significantly affected by the timing, frequency and size of our acquisitions, rather than our core operations. As such, we have excluded this amount ~~and the related tax impact~~ to facilitate an evaluation of our current operating performance and comparison to our past operating performance.

•Acquisition-related costs. Acquisition-related costs consist primarily of one-time transaction and integration costs associated with our business combinations. These costs include professional fees, technology integration fees, restructuring activities and other direct costs related to the purchase and integration of acquired entities. These costs also include retention equity and deferred equity compensation when they are agreed upon as part of the purchase price of the transaction but are required to be recognized as expense post-combination. We have excluded these amounts ~~and the related tax impacts~~ as the expenses are recognized for a limited duration and do not reflect the underlying performance of our business.

•Litigation provision. During the three months ended ~~June 30, 2023 and~~December 31, 2022, we recorded additional accruals to address claims associated with the interchange multidistrict litigation of $456 million and $716 million, respectively, and related tax benefit of $101 million and $159 million, respectively, determined by applying applicable tax rates. During the nine months ended June 30, 2023 and 2022, we recorded additional accruals to address claims associated with the interchange multidistrict litigation of $797 million and $861 million, respectively, and related tax benefit of $177 million and $191 million, respectively, determined by applying applicable tax rates.litigation. Under the U.S. retrospective responsibility plan, we recover the monetary liabilities related to the U.S. covered litigation through a downward adjustment to the rate at which shares of our class B common stock ultimately convert into shares of class A common stock. During the three months ended December 31, 2022, basic and diluted earnings per class A common stock were unchanged, as a result of the downward adjustments of the class B common stock conversion rate during the period. See Note 5—U.S. and Europe Retrospective Responsibility Plans and Note 13—Legal Matters to our unaudited consolidated financial statements.

~~Table of Contents~~

•~~Russia-Ukraine charges~~. During the nine months ended June 30, 2022, we recorded a loss within general and administrative expense of $35 million from the deconsolidation of our Russian subsidiary. We also incurred charges of $25 million in personnel expense as a result of steps taken to support our employees in Russia and Ukraine. We have excluded these amounts and the related tax benefit of $4 million, determined by applying applicable tax rates, as they are one-time charges and do not reflect the underlying performance of our business.

Non-GAAP operating expenses, non-operating income (expense), income tax provision, effective income tax rate, net income and diluted earnings per share should not be relied upon as substitutes for, or considered in isolation from, 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 financial measures:

Three Months Ended June 30, 2023
Operating Expenses Non-operating Income (Expense) Income Tax Provision
Effective Income Tax Rate(1)
Net
Income
Diluted Earnings Per Share(1)
(in millions, except percentages and per share data)
As reported $ 3,099 $ 122 $ 990 19.2 % $ 4,156 $ 2.00
(Gains) losses on equity investments, net — (85) (18) (67) (0.03)
Amortization of acquired intangible assets (41) — 9 32 0.02
Acquisition-related costs (24) — 1 23 0.01
Litigation provision (456) — 101 355 0.17
Non-GAAP $ 2,578 $ 37 $ 1,083 19.4 % $ 4,499 $ 2.16


		Nine Months Ended June 30, 2023										Three Months Ended December 31, 2023
		Operating Expenses		Non-operating Income (Expense)		Income Tax Provision		Effective Income Tax Rate(1)		Net Income			Diluted Earnings Per Share(1)			Operating Expenses		Non-operating Income (Expense)		Income Tax Provision(1)		Effective Income Tax Rate(2)		Net Income		Diluted Earnings Per Share(2)
		(in millions, except percentages and per share data)										(in millions, except percentages and per share data)
As reported	As reported	$	8,594	$	(49)	$	2,809	18.2	%	$	12,592		$	6.02	As reported	$	2,680	$	88	$	1,152	19.1	%	$	4,890	$	2.39
(Gains) losses on equity investments, net	(Gains) losses on equity investments, net	—		111		25				86			0.04		(Gains) losses on equity investments, net	—		(4)		(1)				(3)		—
Amortization of acquired intangible assets	Amortization of acquired intangible assets	(130)		—		28				102			0.05		Amortization of acquired intangible assets	(40)		—		9				31		0.01
Acquisition-related costs	Acquisition-related costs	(69)		—		5				64			0.03		Acquisition-related costs	(21)		—		1				20		0.01

Litigation provision		(797)		—		177				620			0.30

Non-GAAP	Non-GAAP	$	7,598	$	62	$	3,044	18.4	%	$	13,464		$	6.44	Non-GAAP	$	2,619	$	84	$	1,161	19.0	%	$	4,938	$	2.41

Three Months Ended June 30, 2022
Operating Expenses Non-operating Income (Expense) Income Tax Provision
Effective Income Tax Rate(1)
Net
Income
Diluted Earnings Per Share(1)
(in millions, except percentages and per share data)
As reported $ 3,127 $ (319) $ 418 10.9 % $ 3,411 $ 1.60
(Gains) losses on equity investments, net — 246 54 192 0.09
Amortization of acquired intangible assets (44) — 10 34 0.02
Acquisition-related costs (14) — 2 12 0.01
Litigation provision (716) — 159 557 0.26
Non-GAAP $ 2,353 $ (73) $ 643 13.3 % $ 4,206 $ 1.98

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		Nine Months Ended June 30, 2022										Three Months Ended December 31, 2022
		Operating Expenses		Non-operating Income (Expense)		Income Tax Provision		Effective Income Tax Rate(1)		Net Income			Diluted Earnings Per Share(1)			Operating Expenses		Non-operating Income (Expense)		Income Tax Provision(1)		Effective Income Tax Rate(2)		Net Income		Diluted Earnings Per Share(2)
		(in millions, except percentages and per share data)										(in millions, except percentages and per share data)
As reported	As reported	$	7,797	$	(458)	$	2,251	17.0	%	$	11,017		$	5.14	As reported	$	2,846	$	(113)	$	798	16.0	%	$	4,179	$	1.99
(Gains) losses on equity investments, net	(Gains) losses on equity investments, net	—		142		40				102			0.05		(Gains) losses on equity investments, net	—		106		24				82		0.04
Amortization of acquired intangible assets	Amortization of acquired intangible assets	(77)		—		17				60			0.03		Amortization of acquired intangible assets	(43)		—		9				34		0.02
Acquisition-related costs	Acquisition-related costs	(44)		—		6				38			0.02		Acquisition-related costs	(23)		—		2				21		0.01
Litigation provision	Litigation provision	(861)		—		191				670			0.31		Litigation provision	(341)		—		76				265		0.13
Russia-Ukraine charges		(60)		—		4				56			0.03

Non-GAAP	Non-GAAP	$	6,755	$	(316)	$	2,509	17.4	%	$	11,943		$	5.57	Non-GAAP	$	2,439	$	(7)	$	909	16.5	%	$	4,581	$	2.18

(1)Determined by applying applicable tax rates.

(2)Figures in the table may not recalculate exactly due to rounding. Effective income tax rate, diluted earnings per share and their respective totals are calculated based on unrounded numbers.

Payments volume and processed transactions. Payments volume is the primary driver for our service revenues, and the number of processed transactions is the primary driver for our data processing revenues.

Payments volume represents the aggregate dollar amount of purchases made with cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume. Nominal payments volume is denominated in U.S. dollars and is calculated each quarter by applying an established U.S. dollar/foreign currency exchange rate for each local currency in which our volumes are reported. Processed transactions represent transactions using cards and other form factors carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands processed on Visa’s networks.

~~Table of Contents~~

The following table presents nominal payments and cash volume:


		U.S.						International						Visa Inc.							U.S.						International						Visa Inc.
		Three Months Ended March 31,(1)						Three Months Ended March 31,(1)						Three Months Ended March 31,(1)							Three Months Ended September 30,(1)						Three Months Ended September 30,(1)						Three Months Ended September 30,(1)
		2023		2022		% Change(2)		2023		2022		% Change(2)		2023		2022		% Change(2)			2023		2022		% Change(2)		2023		2022		% Change(2)		2023		2022		% Change(2)
		(in billions, except percentages)																			(in billions, except percentages)
Nominal payments volume	Nominal payments volume																			Nominal payments volume
Consumer credit	Consumer credit	$	530	$	487	9	%	$	697	$	658	6	%	$	1,228	$	1,145	7	%	Consumer credit	$	580	$	551	5	%	$	735	$	684	7	%	$	1,315	$	1,236	6	%
Consumer debit(3)	Consumer debit(3)	699		637		10	%	654		661		(1	%)	1,353		1,298		4	%	Consumer debit(3)	730		683		7	%	744		638		17	%	1,474		1,320		12	%
Commercial(4)	Commercial(4)	241		214		13	%	136		122		12	%	376		335		12	%	Commercial(4)	259		246		6	%	150		130		15	%	409		376		9	%
Total nominal payments volume(2)	Total nominal payments volume(2)	$	1,470	$	1,337	10	%	$	1,487	$	1,441	3	%	$	2,957	$	2,778	6	%	Total nominal payments volume(2)	$	1,569	$	1,479	6	%	$	1,629	$	1,452	12	%	$	3,198	$	2,932	9	%
Cash volume(5)	Cash volume(5)	149		143		4	%	448		462		(3	%)	596		605		(1	%)	Cash volume(5)	155		155		(1	%)	474		451		5	%	629		607		4	%
Total nominal volume(2),(6)	Total nominal volume(2),(6)	$	1,619	$	1,480	9	%	$	1,934	$	1,903	2	%	$	3,553	$	3,383	5	%	Total nominal volume(2),(6)	$	1,724	$	1,635	5	%	$	2,103	$	1,904	11	%	$	3,827	$	3,538	8	%

		U.S.						International						Visa Inc.
		Nine Months Ended March 31,(1)						Nine Months Ended March 31,(1)						Nine Months Ended March 31,(1)
		2023		2022		% Change(2)		2023		2022		% Change(2)		2023		2022		% Change(2)
		(in billions, except percentages)
Nominal payments volume
Consumer credit		$	1,650	$	1,492	11	%	$	2,078	$	2,018	3	%	$	3,728	$	3,510	6	%
Consumer debit(3)		2,088		1,929		8	%	1,954		2,087		(6	%)	4,042		4,016		1	%
Commercial(4)		735		638		15	%	403		368		9	%	1,138		1,006		13	%
Total nominal payments volume(2)		$	4,473	$	4,058	10	%	$	4,435	$	4,473	(1	%)	$	8,908	$	8,532	4	%
Cash volume(5)		454		475		(4	%)	1,365		1,472		(7	%)	1,820		1,947		(7	%)
Total nominal volume(2),(6)		$	4,927	$	4,534	9	%	$	5,800	$	5,945	(2	%)	$	10,727	$	10,479	2	%

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The following table presents the change in nominal and constant payments and cash volume:


		International				Visa Inc.				International				Visa Inc.					International				Visa Inc.
		Three Months Ended March 31, 2023 vs. 2022(1),(2)				Three Months Ended March 31, 2023 vs. 2022(1),(2)				Nine Months Ended March 31, 2023 vs. 2022(1),(2)				Nine Months Ended March 31, 2023 vs. 2022(1),(2)					Three Months Ended September 30, 2023 vs. 2022(1),(2)				Three Months Ended September 30, 2023 vs. 2022(1),(2)
		Nominal		Constant(7)		Nominal		Constant(7)		Nominal		Constant(7)		Nominal		Constant(7)			Nominal		Constant(7)		Nominal		Constant(7)
Payments volume growth	Payments volume growth																	Payments volume growth
Consumer credit growth	Consumer credit growth	6	%	14	%	7	%	12	%	3	%	13	%	6	%	12	%	Consumer credit growth	7	%	10	%	6	%	8	%
Consumer debit growth(3)	Consumer debit growth(3)	(1	%)	5	%	4	%	7	%	(6	%)	1	%	1	%	5	%	Consumer debit growth(3)	17	%	13	%	12	%	10	%
Commercial growth(4)	Commercial growth(4)	12	%	21	%	12	%	15	%	9	%	22	%	13	%	17	%	Commercial growth(4)	15	%	15	%	9	%	9	%
Total payments volume growth	Total payments volume growth	3	%	10	%	6	%	10	%	(1	%)	8	%	4	%	9	%	Total payments volume growth	12	%	12	%	9	%	9	%
Cash volume growth(5)	Cash volume growth(5)	(3	%)	2	%	(1	%)	3	%	(7	%)	(1	%)	(7	%)	(2	%)	Cash volume growth(5)	5	%	4	%	4	%	3	%
Total volume growth	Total volume growth	2	%	8	%	5	%	9	%	(2	%)	6	%	2	%	7	%	Total volume growth	11	%	10	%	8	%	8	%

(1)Service revenues in a given quarter are primarily assessed based on nominal payments volume in the prior quarter. Therefore, service revenues reported for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 and 2022, respectively, were based on nominal payments volume reported by our financial institution clients for the three ~~and nine~~ months ended ~~March 31,~~September 30, 2023 and 2022, respectively. On occasion, previously presented volume information may be updated. Prior period updates are not material.

(2)Figures in the table may not recalculate exactly due to rounding. Percentage changes and totals are calculated based on unrounded numbers.

(3)Includes consumer prepaid volume and Interlink volume.

(4)Includes large, medium and small business credit and debit, as well as commercial prepaid volume.

(5)Cash volume generally consists of cash access transactions, balance access transactions, balance transfers and convenience checks.

(6)Total nominal volume is the sum of total nominal payments volume and cash volume. Total nominal volume is provided by our financial institution clients, subject to review by Visa.

(7)Growth on a constant-dollar basis excludes the impact of foreign currency fluctuations against the U.S. dollar.

~~Table of Contents~~

The following table presents the number of processed transactions:

Three Months Ended
June 30, Nine Months Ended
June 30,
2023 2022
%
Change(1)
2023 2022
%
Change(1)
(in millions, except percentages)
Visa processed transactions 54,034 49,279 10 % 156,615 141,645 11 %


	Three Months Ended December 31,
		2023	2022	% Change(1)
		(in millions, except percentages)
Visa processed transactions		57,472	52,512	9	%

(1)Figures in the table may not recalculate exactly due to rounding. Percentage change is calculated based on unrounded numbers. On occasion, previously presented information may be updated. Prior period updates are not material.

Results of Operations

Net Revenues

The following table presents our net revenues earned in the U.S. and internationally:


		Three Months Ended June 30,						Nine Months Ended June 30,							Three Months Ended December 31,
		2023		2022		% Change(1)		2023		2022		% Change(1)				2023		2022		% Change(1)
		(in millions, except percentages)														(in millions, except percentages)
U.S.	U.S.	$	3,443	$	3,170	9	%	$	10,550	$	9,427	12	%	U.S.		$	3,645	$	3,567	2	%
International	International	4,680		4,105		14	%	13,494		12,096		12	%	International		4,989		4,369		14	%
Net revenues	Net revenues	$	8,123	$	7,275	12	%	$	24,044	$	21,523	12	%	Net revenues		$	8,634	$	7,936	9	%

(1)Figures in the table may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.

Net revenues increased over the ~~three and nine-month~~three-month prior-year comparable ~~periods~~period primarily due to the growth in nominal cross-border volume, processed transactions and nominal payments volume, partially offset by higher client incentives.

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Our net revenues are impacted by the overall strengthening or weakening of the U.S. dollar as payments volume and related revenues denominated in local currencies are converted to U.S. dollars. During the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, exchange rate movements ~~lowered our~~did not have a material impact on net revenues ~~growth by approximately one percentage point and two percentage points, respectively.~~growth.

The following table presents the components of our net revenues:


		Three Months Ended June 30,						Nine Months Ended June 30,							Three Months Ended December 31,
		2023		2022		% Change(1)		2023		2022		% Change(1)				2023		2022		% Change(1)
		(in millions, except percentages)														(in millions, except percentages)
Service revenues	Service revenues	$	3,668	$	3,189	15	%	$	10,950	$	9,903	11	%	Service revenues		$	3,915	$	3,511	11	%
Data processing revenues	Data processing revenues	4,105		3,579		15	%	11,751		10,673		10	%	Data processing revenues		4,356		3,827		14	%
International transaction revenues	International transaction revenues	2,920		2,560		14	%	8,466		6,942		22	%	International transaction revenues		3,019		2,797		8	%
Other revenues	Other revenues	597		517		15	%	1,735		1,440		20	%	Other revenues		692		587		18	%
Client incentives	Client incentives	(3,167)		(2,570)		23	%	(8,858)		(7,435)		19	%	Client incentives		(3,348)		(2,786)		20	%
Net revenues	Net revenues	$	8,123	$	7,275	12	%	$	24,044	$	21,523	12	%	Net revenues		$	8,634	$	7,936	9	%

(1)Figures in the table may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.

•Service revenues increased primarily due to ~~6% and 4%~~9% growth in nominal payments volume ~~over the three~~ and nine-month prior-year comparable periods, respectively, and due to business mix. Service revenues increased over the nine month prior-year comparable period despite the impact of our suspension of operations in Russia.select pricing modifications.

•Data processing revenues increased primarily due to ~~overall~~9% growth in processed transactions, ~~of 10% and 11% over the three and nine-month prior-year comparable periods, respectively, growth in value added~~

~~Table of Contents~~

~~services and~~ select pricing ~~modifications. Data processing revenues increased over the nine month prior-year comparable period despite the impact of our suspension of operations in Russia.~~modifications and business mix.

•International transaction revenues increased ~~over the three month prior-year comparable period~~ primarily due to growth in nominal cross-border volumes of ~~22%~~18%, excluding transactions within Europe, ~~and select pricing modifications,~~ partially offset by ~~business mix and~~ lower volatility of a broad range of currencies. ~~International transaction revenues~~increased over the nine month prior-year comparable period primarily due to growth in nominal cross-border volumes of 23%, excluding transactions within Europe, and select pricing modifications, partially offset by business mix.

•Other revenues increased ~~over the three month prior-year comparable period~~ primarily due to select pricing modifications and growth in ~~value added services revenues tied to~~ consulting services. Other revenues increased over the nine month prior-year comparable period due to growth in value added services tied to marketing and consulting services, select pricing modifications and acquisition-related revenues.

•Client incentives increased primarily due to growth in payments ~~volume over the three and nine-month prior-year comparable periods.~~volume. The amount of client incentives we record in future periods will vary based on changes in performance expectations, actual client performance, amendments to existing contracts or the execution of new contracts.

Operating Expenses

The following table presents the components of our total operating expenses:


		Three Months Ended June 30,						Nine Months Ended June 30,							Three Months Ended December 31,
		2023		2022		% Change(1)		2023		2022		% Change(1)				2023		2022		% Change(1)
		(in millions, except percentages)														(in millions, except percentages)
Personnel	Personnel	$	1,481	$	1,283	15	%	$	4,333	$	3,634	19	%	Personnel		$	1,479	$	1,337	11	%
Marketing	Marketing	297		313		(5	%)	938		907		3	%	Marketing		293		332		(12	%)
Network and processing	Network and processing	182		178		2	%	539		558		(3	%)	Network and processing		181		178		1	%
Professional fees	Professional fees	133		117		13	%	372		342		9	%	Professional fees		131		109		21	%
Depreciation and amortization	Depreciation and amortization	235		230		3	%	696		635		10	%	Depreciation and amortization		247		227		9	%
General and administrative	General and administrative	314		289		9	%	918		856		7	%	General and administrative		340		322		5	%
Litigation provision	Litigation provision	457		717		(36	%)	798		865		(8	%)	Litigation provision		9		341		(97	%)
Total operating expenses	Total operating expenses	$	3,099	$	3,127	(1	%)	$	8,594	$	7,797	10	%	Total operating expenses		$	2,680	$	2,846	(6	%)

(1)Figures in the table may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.

•Personnel expenses increased during the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 primarily due to a higher number of employees and compensation, reflecting our strategy to invest in future ~~growth, including acquisitions.~~growth.

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•Marketing expenses ~~increased~~decreased during the ~~nine~~three months ended ~~June 30,~~December 31, 2023 primarily due to ~~increased spending in various campaigns, including~~spend related to the FIFA World Cup 2022TMin the prior year and ~~client marketing. The increase was partially offset by the absence of spending for the Olympic and Paralympic Winter Games Beijing 2022~~absent in the current ~~period.~~year.

•~~Depreciation and amortization expenses~~Professional fees increased during the ~~nine~~three months ended ~~June 30,~~December 31, 2023 primarily due to ~~additional depreciation~~higher legal and ~~amortization from our on-going investments and acquisitions.~~consulting fees.

•General and administrative expenses increased during the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 primarily due to higher usage of travel related card benefits ~~an increase in travel expenses~~ and ~~unfavorable~~indirect taxes, partially offset by favorable foreign currency fluctuations. ~~The increase during the nine months ended June 30, 2023 was partially offset by the absence of expenses as a result of the suspension of our operations in Russia.~~

•Litigation provision decreased during the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 primarily due to ~~lower accruals~~the accrual related to the U.S. covered ~~litigation.~~litigation in the prior year and absent in the current year. See Note 13—Legal Matters to our unaudited consolidated financial statements.

~~Table of Contents~~

Non-operating Income (Expense)

The following table presents the components of our non-operating income (expense):


		Three Months Ended June 30,						Nine Months Ended June 30,							Three Months Ended December 31,
		2023		2022		% Change(1)		2023		2022		% Change(1)				2023		2022		% Change(1)
		(in millions, except percentages)														(in millions, except percentages)
Interest expense	Interest expense	$	(182)	$	(111)	64	%	$	(461)	$	(379)	22	%	Interest expense		$	(187)	$	(137)	36	%
Investment income (expense) and other	Investment income (expense) and other	304		(208)		(246	%)	412		(79)		(625	%)	Investment income (expense) and other		275		24		NM
Total non-operating income (expense)	Total non-operating income (expense)	$	122	$	(319)	(138	%)	$	(49)	$	(458)	(89	%)	Total non-operating income (expense)		$	88	$	(113)	(178	%)

NM - Not meaningful

(1)Figures in the table may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.

•Interest expense increased during the three months ended ~~June 30,~~December 31, 2023 primarily ~~driven by~~due to losses from derivative instruments and ~~higher interest related to income~~the discrete tax ~~liabilities. Interest expense increased~~benefit recognized during the ~~nine months ended June 30, 2023 primarily driven by losses from derivative instruments,~~prior year, partially offset by lower interest expense related to ~~indirect taxes.~~ lower outstanding debt.

•Investment income (expense) and other increased during the three months ended ~~June 30, 2023, primarily due to gains on our investments and higher interest income on our cash and investments. Investment income (expense) and other increased during the nine months ended June 30,~~December 31, 2023, primarily due to higher interest income on our cash and investments and ~~lower losses~~gains on our investments.

Effective Income Tax Rate

The following table presents our effective income tax rates:

Three Months Ended
June 30, Nine Months Ended
June 30,
2023 2022 2023 2022
Effective income tax rate 19 % 11 % 18 % 17 %


	Three Months Ended December 31,
		2023		2022
Effective income tax rate		19	%	16	%

The difference in the effective tax rates is primarily due to ~~the following:~~

•During the three months ended June 30, 2022, a $176 million tax benefit related to prior years due to a decrease in the state apportionment ratio as a result of a tax position taken related to a ruling.examination.

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Liquidity and Capital Resources

Cash Flow Data

The following table summarizes our cash flow activity for the periods presented:


		Nine Months Ended June 30,					Three Months Ended December 31,
		2023		2022			2023		2022
		(in millions)					(in millions)
Total cash provided by (used in):	Total cash provided by (used in):					Total cash provided by (used in):
Operating activities	Operating activities	$	13,828	$	12,973	Operating activities	$	3,614	$	4,171
Investing activities	Investing activities	(818)		(4,395)		Investing activities	$	(1,889)	$	(510)
Financing activities	Financing activities	(13,192)		(8,656)		Financing activities	$	(4,379)	$	(6,347)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents		844		(725)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents		$	662	$	(803)

Operating activities. Cash provided by operating activities for the ~~nine~~three months ended ~~June 30,~~December 31, 2023 was ~~higher~~lower than the prior-year comparable period primarily due to higher incentive payments and higher litigation payments, partially offset by continued growth in our underlying ~~business, partially offset by higher incentive and litigation payments.~~business.

Investing activities. Cash used in investing activities for the ~~nine~~three months ended ~~June 30,~~December 31, 2023 was ~~lower~~higher than the prior-year comparable period primarily due to ~~the absence of cash paid for acquisitions, lower~~higher purchases of investment securities and cash received from the settlement of net investment hedge derivative instruments in the ~~current~~prior year.

Financing activities. Cash used in financing activities for the ~~nine~~three months ended ~~June 30,~~December 31, 2023 was ~~higher~~lower than the prior-year comparable period primarily due to ~~the absence of proceeds from the issuance of senior notes,~~ the principal debt payment upon maturity of our December 2022 senior notes in the prior year, partially offset by higher share repurchases and higher dividends ~~paid, partially offset by lower share repurchases.~~paid. See Note 7—Debt and Note 9—Stockholders’ Equity to our unaudited consolidated financial statements.

Sources of Liquidity

Our primary sources of liquidity are cash on hand, cash flow from our operations, our investment portfolio and access to various equity and borrowing arrangements. Funds from operations are maintained in cash and cash equivalents and short-term or long-term investment securities based upon our funding requirements, access to liquidity from these holdings and the returns that these holdings provide. Based on our current cash flow budgets and forecasts of our short-term and long-term liquidity needs, we believe that our current and projected sources of liquidity will be sufficient to meet our projected liquidity needs for more than the next 12 months. We will continue to assess our liquidity position and potential sources of supplemental liquidity in view of our operating performance, current economic and capital market conditions and other relevant circumstances.

~~Credit facility extension.~~ ~~In May 2023, we entered into an amended and restated credit agreement for a 5 year, unsecured $7.0 billion revolving credit facility, which will expire in May 2028. See~~ ~~Note 7—Debtto our unaudited consolidated financial statements.~~

Uses of Liquidity

There has been no significant change to our primary uses of liquidity since September 30, ~~2022,~~2023, except as discussed below.

Common stock repurchases. During the ~~nine~~three months ended ~~June 30,~~December 31, 2023, we repurchased shares of our class A common stock in the open market for ~~$8.4~~$3.6 billion. As of ~~June 30,~~December 31, 2023, our share repurchase ~~program~~programs had remaining authorized funds of ~~$8.8~~$26.4 billion. See Note 9—Stockholders’ Equity to our unaudited consolidated financial statements.

~~Table of Contents~~

Dividends. During the ~~nine~~three months ended ~~June 30,~~December 31, 2023, we declared and paid ~~$2.8~~$1.1 billion in dividends to holders of our common and preferred stock. On ~~July 25, 2023,~~January 23, 2024, our board ~~of directors~~ declared a quarterly cash dividend of ~~$0.45~~$0.52 per share of class A common stock (determined in the case of class BB-1 and C common stock and series A, B and C convertible participating preferred stock on an as-converted basis). See Note 9—Stockholders’ Equity to our unaudited consolidated financial statements. We expect to continue paying quarterly dividends in cash, subject to approval by the ~~board of directors.~~board. All preferred and class BB-1 and C common stock will share ratably on an as-converted basis in such future dividends.

~~Senior notes~~Acquisition. ~~During the nine months ended June 30, 2023,~~On January 16 2024, we ~~repaid $2.25~~acquired Pismo for $1.0 billion ~~of principal upon maturity of our December 2022 senior notes.~~in cash. See Note ~~7—Debt~~2—Acquisitions to our unaudited consolidated financial statements.

~~Pending acquisition~~. In June 2023, we entered into a definitive agreement to acquire Pismo for $1.0 billion in cash. This acquisition is subject to customary closing conditions, including applicable regulatory reviews and approvals.Table of Contents

~~Litigation.~~ During the nine months ended June 30, 2023, we deposited $850 million into the U.S. litigation escrow account to address claims associated with the interchange multidistrict litigation. The balance of this account as of June 30, 2023 was $1.6 billion and is reflected as restricted cash in our consolidated balance sheets. See ~~Note 5—U.S. and Europe Retrospective Responsibility Plans~~ ~~and~~ ~~Note 13—Legal Matters~~ ~~to our unaudited consolidated financial statements.~~

Accounting Pronouncements Not Yet Adopted

~~The~~In November 2023, the Financial Accounting Standards Board ~~has~~(FASB) issued ~~certain accounting updates,~~Accounting Standards Update (ASU) 2023-07, which ~~we have either determined~~is intended to ~~be not applicable or not expected~~improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This standard also enhances interim disclosure requirements and provides new segment disclosure requirements for entities with a single reportable segment. This ASU is effective for our annual periods beginning October 1, 2024, and interim periods beginning October 1, 2025, and requires retrospective application to ~~have a material~~all prior periods presented. We are currently evaluating the impact of the ASU on our ~~consolidated financial statements.~~disclosures.

In December 2023, the FASB issued ASU 2023-09, which provides improvements to income tax disclosures. This standard requires disaggregated information related to effective tax rate reconciliation as well as information on income taxes paid. This ASU is effective for our annual periods beginning October 1, 2025, and requires prospective application with the option to apply the standard retrospectively. We are currently evaluating the impact of the ASU on our disclosures.


ITEM 3.			Quantitative and Qualitative Disclosures about Market Risk

There have been no significant changes to our market risks since September 30, ~~2022.~~2023.


ITEM 4.			Controls and Procedures

Evaluation of disclosure controls and procedures. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) of Visa Inc. at the end of the period covered by this report and, based on such evaluation, have concluded that the disclosure controls and procedures of Visa Inc. were effective at the reasonable assurance level as of such date.

Changes in internal control over financial reporting. There have been no changes in our internal control over financial reporting that occurred during our ~~third~~first quarter of fiscal ~~2023~~2024 that have materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

3831

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PART II. OTHER INFORMATION


ITEM 1.			Legal Proceedings.

Refer to Note 13—Legal Matters to the unaudited consolidated financial statements included in this Form 10-Q for developments concerning the Company’s current material legal proceedings, since the Company's Annual Report on Form 10-K for the year ended September 30, ~~2022.~~2023.


ITEM 1A.			Risk Factors.

For a discussion of the Company’s risk factors, see the information under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended September 30, ~~2022.~~2023.

3932

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ITEM 2.			Unregistered Sales of Equity Securities and Use of Proceeds.

Issuer Purchases of Equity Securities

The table below presents our purchases of common stock during the three months ended ~~June 30,~~December 31, 2023:

Period Total Number
of Shares
Purchased
Average Purchase Price
per Share(1)
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs(2)
Approximate Dollar Value
of Shares that May Yet Be Purchased
Under the Plans or Programs(1),(2)
(in millions, except per share data)
April 1 - 30, 2023 2 $ 232.44 2 $ 11,237
May 1 - 31, 2023 6 $ 229.52 6 $ 9,923
June 1 - 30, 2023 5 $ 227.24 5 $ 8,819
Total 13 $ 229.19 13


Period	Total Number of Shares Purchased	Average Purchase Price per Share(1)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(1),(2)
	(in millions, except per share data)
October 1 - 31, 2023	12	$	237.17	12	$	26,878
November 1 - 30, 2023	1	$	239.85	1	$	26,712
December 1 - 31, 2023	1	$	260.48	1	$	26,374
Total	14	$	239.45	14

(1)Includes applicable taxes.

(2)The figures in the table reflect transactions according to the trade dates. For purposes of our unaudited consolidated financial statements included in this Form 10-Q, the impact of these repurchases is recorded according to the settlement dates.

See Note 9—Stockholders’ Equity to our unaudited consolidated financial statements for further discussion on our share repurchase programs.


ITEM 3.			Defaults Upon Senior Securities.

None.


ITEM 4.			Mine Safety Disclosures.

Not applicable.


ITEM 5.			Other Information.

None.

4033

Table of Contents


ITEM 6.			Exhibits.

EXHIBIT INDEX

Incorporated by Reference

Exhibit
Number

Description of Documents

Schedule/ Form

File Number

Exhibit

Filing Date

Exhibit
Number

Description of Documents

Schedule/ Form

File Number

Exhibit

Filing Date

10.1+

Five Year Revolving Credit Agreement, amended and restated as of May 31, 2023, by and among Visa Inc., Visa International Service Association, Visa U.S.A. Inc. and Visa Europe Limited, as borrowers, Bank of America, N.A., as administrative agent, JPMorgan Chase Bank N.A., as syndication agent, and the lenders referred to therein

10.2

Offer Letter and One-Time Cash Award Agreement, dated June 13, 2023, between Visa Inc. and Chris Suh

8-K

001-33977

99.2

6/20/2023

3.1

Eighth Restated Certificate of Incorporation of Visa Inc.

8-K

001-33977

3.2

1/24/2024

31.1+

Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer

31.1+

Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer

31.2+

Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer

31.2+

Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer

32.1+

Section 1350 Certification of Principal Executive and Financial Officer

32.1+

Section 1350 Certification of Principal Executive and Financial Officer

101.INS+

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.INS+

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH+

Inline XBRL Taxonomy Extension Schema Document

101.SCH+

Inline XBRL Taxonomy Extension Schema Document

101.CAL+

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.CAL+

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF+

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.DEF+

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB+

Inline XBRL Taxonomy Extension Label Linkbase Document

101.LAB+

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE+

Inline XBRL Taxonomy Extension Presentation Linkbase Document

101.PRE+

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104+

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

104+

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)



+			Filed or furnished herewith.

4134

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

VISA INC.

Date:

~~July~~January 25, ~~2023~~2024

By:

/s/ Ryan McInerney

Name:

Ryan McInerney

Title:

Chief Executive Officer
(Principal Executive Officer)

Date:

~~July~~January 25, ~~2023~~2024

By:

/s/ ~~Vasant M. Prabhu~~Chris Suh

Name:

~~Vasant M. Prabhu~~Chris Suh

Title:

~~Vice Chair,~~

Chief Financial Officer

(Principal Financial Officer)

Date:

~~July~~January 25, ~~2023~~2024

By:

/s/ Peter M. Andreski

Name:

Peter M. Andreski

Title:

Global Corporate Controller, Chief Accounting Officer
(Principal Accounting Officer)

4235


	Three Months Ended June 30, 2023
	Preferred Stock				Common Stock and Additional Paid-in Capital			Right to Recover for Covered Losses		Accumulated Income		Accumulated Other Comprehensive Income (Loss), Net		Total Equity
	Shares		Amount		Shares	Amount
	(in millions, except per share data)
Balance as of March 31, 2023	5		$	1,885	1,874	$	20,095	$	(35)	$	17,610	$	(990)	$	38,565
Net income										4,156				4,156
Other comprehensive income (loss), net of tax												12		12
VE territory covered losses incurred								(6)						(6)
Recovery through conversion rate adjustment			(16)					16						—

Conversion to class A common stock upon sales into public market	—	(1)	(83)		1	83								—
Share-based compensation expense						191								191
Stock issued under equity plans					1	71								71
Restricted stock and performance-based shares settled in cash for taxes					(1)	(7)								(7)
Cash dividends declared and paid, at a quarterly amount of $0.45 per class A common stock										(937)				(937)
Repurchase of class A common stock					(13)	(143)				(2,921)				(3,064)
Balance as of June 30, 2023	5		$	1,786	1,862	$	20,290	$	(25)	$	17,908	$	(978)	$	38,981


	Three Months Ended June 30, 2022
	Preferred Stock				Common Stock and Additional Paid-in Capital				Right to Recover for Covered Losses		Accumulated Income		Accumulated Other Comprehensive Income (Loss), Net		Total Equity
	Shares		Amount		Shares		Amount
	(in millions, except per share data)
Balance as of March 31, 2022	5		$	2,987	1,903		$	18,876	$	(120)	$	14,651	$	(405)	$	35,989
Net income											3,411				3,411
Other comprehensive income (loss), net of tax													(862)		(862)
VE territory covered losses incurred									(15)						(15)
Recovery through conversion rate adjustment			(112)						112						—

Conversion to class A common stock upon sales into public market	—	(1)	(24)		1		24								—
Share-based compensation expense							152								152
Stock issued under equity plans					—	(1)	40								40
Restricted stock and performance-based shares settled in cash for taxes					—	(1)	(1)								(1)
Cash dividends declared and paid, at a quarterly amount of $0.375 per class A common stock											(798)				(798)
Repurchase of class A common stock					(12)		(129)				(2,304)				(2,433)
Balance as of June 30, 2022	5		$	2,851	1,892		$	18,962	$	(23)	$	14,960	$	(1,267)	$	35,483