Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Visa Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
U.S. federal	2,166)	1,943)	1,662)	1,504)	2,819)	2,377)
State and local	104)	69)	212)	243)	219)	291)
Non-U.S.	1,245)	869)	743)	843)	754)	629)
Current taxes	3,515)	2,881)	2,617)	2,590)	3,792)	3,297)
U.S. federal	(231)	(57)	42)	184)	(1,214)	1,607)
State and local	(77)	(28)	9)	28)	(96)	66)
Non-U.S.	(28)	956)	256)	2)	23)	25)
Deferred taxes	(336)	871)	307)	214)	(1,287)	1,698)
Income tax provision	3,179)	3,752)	2,924)	2,804)	2,505)	4,995)

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

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Item	Description	The company
Current taxes	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Visa Inc. current taxes increased from 2020 to 2021 and from 2021 to 2022.
Deferred taxes	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Visa Inc. deferred taxes increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Income tax provision	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Visa Inc. income tax provision increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Visa Inc., effective income tax rate (EITR) reconciliation

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
U.S. federal income tax statutory rate	21.00%	21.00%	21.00%	21.00%	25.00%	35.00%
State income taxes, net of federal benefit	1.00%	1.00%	2.00%	2.00%	2.00%	2.00%
Non-U.S. tax effect, net of federal benefit	-3.00%	-3.00%	-4.00%	-4.00%	-4.00%	-5.00%
Transition tax on foreign earnings	0.00%	0.00%	0.00%	0.00%	9.00%	0.00%
Remeasurement of deferred tax balances	0.00%	6.00%	2.00%	0.00%	-9.00%	0.00%
Conclusion of audits	0.00%	-2.00%	0.00%	0.00%	0.00%	0.00%
State tax apportionment position	-1.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Reorganization of Visa Europe and other legal entities	0.00%	0.00%	0.00%	0.00%	0.00%	13.00%
Other, net	0.00%	0.00%	0.00%	0.00%	-3.00%	-2.00%
Effective income tax rate	18.00%	23.00%	21.00%	19.00%	20.00%	43.00%

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Visa Inc. effective income tax rate increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Visa Inc., components of deferred tax assets and liabilities

US$ in millions

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Accrued compensation and benefits	172)	166)	114)	117)	135)	194)
Accrued litigation obligation	331)	234)	204)	273)	329)	373)
Client incentives	442)	327)	121)	125)	213)	272)
Net operating loss carryforwards	117)	104)	80)	65)	34)	45)
Comprehensive loss	21)	106)	148)	33)	17)	29)
Federal benefit of state taxes	133)	157)	203)	148)	120)	236)
Other	71)	55)	12)	6)	127)	193)
Deferred tax assets, before valuation allowance	1,287)	1,149)	882)	767)	975)	1,342)
Valuation allowance	(120)	(103)	(84)	(69)	(34)	(35)
Deferred tax assets	1,167)	1,046)	798)	698)	941)	1,307)
Property, equipment and technology, net	(450)	(346)	(343)	(314)	(286)	(391)
Intangible assets	(5,788)	(6,452)	(5,492)	(4,983)	(5,153)	(6,756)
Unrealized gains on equity securities	(124)	(203)	—)	—)	—)	—)
Foreign taxes	(50)	(93)	(137)	(184)	(106)	(59)
Deferred tax liabilities	(6,412)	(7,094)	(5,972)	(5,481)	(5,545)	(7,206)
Net deferred tax assets (liabilities)	(5,245)	(6,048)	(5,174)	(4,783)	(4,604)	(5,899)

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

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Item	Description	The company
Deferred tax assets, before valuation allowance	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Visa Inc. deferred tax assets, before valuation allowance increased from 2020 to 2021 and from 2021 to 2022.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Visa Inc. deferred tax assets increased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Visa Inc. net deferred tax assets (liabilities) decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

Visa Inc., deferred tax assets and liabilities, classification

US$ in millions

		Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
	Net deferred tax assets (reflected in Other assets)	87)	80)	63)	24)	14)	81)
	Deferred tax liabilities	5,332)	6,128)	5,237)	4,807)	4,618)	5,980)

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

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Item	Description	The company
Net deferred tax assets (reflected in Other assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Visa Inc. net deferred tax assets (reflected in Other assets) increased from 2020 to 2021 and from 2021 to 2022.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Visa Inc. deferred tax liabilities increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Visa Inc., adjustments to financial statements

US$ in millions

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Adjustment to Total Assets
Total assets (as reported)	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Less: Noncurrent deferred tax assets, net	87)	80)	63)	24)	14)	81)
Total assets (adjusted)	85,414)	82,816)	80,856)	72,550)	69,211)	67,896)
Adjustment to Total Liabilities
Total liabilities (as reported)	49,920)	45,307)	44,709)	37,890)	35,219)	35,217)
Less: Noncurrent deferred tax liabilities, net	5,332)	6,128)	5,237)	4,807)	4,618)	5,980)
Total liabilities (adjusted)	44,588)	39,179)	39,472)	33,083)	30,601)	29,237)
Adjustment to Equity
Equity (as reported)	35,581)	37,589)	36,210)	34,684)	34,006)	32,760)
Less: Net deferred tax assets (liabilities)	(5,245)	(6,048)	(5,174)	(4,783)	(4,604)	(5,899)
Equity (adjusted)	40,826)	43,637)	41,384)	39,467)	38,610)	38,659)
Adjustment to Net Income
Net income (as reported)	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Add: Deferred income tax expense (benefit)	(336)	871)	307)	214)	(1,287)	1,698)
Net income (adjusted)	14,621)	13,182)	11,173)	12,294)	9,014)	8,397)

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

Visa Inc., Financial Data: Reported vs. Adjusted

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Visa Inc., adjusted financial ratios

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Net Profit Margin
Reported net profit margin	51.03%	51.07%	49.74%	52.57%	49.98%	36.49%
Adjusted net profit margin	49.88%	54.69%	51.14%	53.51%	43.74%	45.74%
Total Asset Turnover
Reported total asset turnover	0.34	0.29	0.27	0.32	0.30	0.27
Adjusted total asset turnover	0.34	0.29	0.27	0.32	0.30	0.27
Financial Leverage
Reported financial leverage	2.40	2.21	2.23	2.09	2.04	2.08
Adjusted financial leverage	2.09	1.90	1.95	1.84	1.79	1.76
Return on Equity (ROE)
Reported ROE	42.04%	32.75%	30.01%	34.83%	30.29%	20.45%
Adjusted ROE	35.81%	30.21%	27.00%	31.15%	23.35%	21.72%
Return on Assets (ROA)
Reported ROA	17.49%	14.85%	13.43%	16.65%	14.88%	9.85%
Adjusted ROA	17.12%	15.92%	13.82%	16.95%	13.02%	12.37%

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Visa Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Visa Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Visa Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Visa Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Visa Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Visa Inc., Financial Ratios: Reported vs. Adjusted

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	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Net revenues	29,310)	24,105)	21,846)	22,977)	20,609)	18,358)
Profitability Ratio
Net profit margin¹	51.03%	51.07%	49.74%	52.57%	49.98%	36.49%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	14,621)	13,182)	11,173)	12,294)	9,014)	8,397)
Net revenues	29,310)	24,105)	21,846)	22,977)	20,609)	18,358)
Profitability Ratio
Adjusted net profit margin²	49.88%	54.69%	51.14%	53.51%	43.74%	45.74%

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

2022 Calculations

¹ Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 14,957 ÷ 29,310 = 51.03%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenues
= 100 × 14,621 ÷ 29,310 = 49.88%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Visa Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Net revenues	29,310)	24,105)	21,846)	22,977)	20,609)	18,358)
Total assets	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Activity Ratio
Total asset turnover¹	0.34	0.29	0.27	0.32	0.30	0.27
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenues	29,310)	24,105)	21,846)	22,977)	20,609)	18,358)
Adjusted total assets	85,414)	82,816)	80,856)	72,550)	69,211)	67,896)
Activity Ratio
Adjusted total asset turnover²	0.34	0.29	0.27	0.32	0.30	0.27

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

2022 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 29,310 ÷ 85,501 = 0.34

² Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 29,310 ÷ 85,414 = 0.34

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Visa Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Equity	35,581)	37,589)	36,210)	34,684)	34,006)	32,760)
Solvency Ratio
Financial leverage¹	2.40	2.21	2.23	2.09	2.04	2.08
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	85,414)	82,816)	80,856)	72,550)	69,211)	67,896)
Adjusted equity	40,826)	43,637)	41,384)	39,467)	38,610)	38,659)
Solvency Ratio
Adjusted financial leverage²	2.09	1.90	1.95	1.84	1.79	1.76

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

2022 Calculations

¹ Financial leverage = Total assets ÷ Equity
= 85,501 ÷ 35,581 = 2.40

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity
= 85,414 ÷ 40,826 = 2.09

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Visa Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Equity	35,581)	37,589)	36,210)	34,684)	34,006)	32,760)
Profitability Ratio
ROE¹	42.04%	32.75%	30.01%	34.83%	30.29%	20.45%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	14,621)	13,182)	11,173)	12,294)	9,014)	8,397)
Adjusted equity	40,826)	43,637)	41,384)	39,467)	38,610)	38,659)
Profitability Ratio
Adjusted ROE²	35.81%	30.21%	27.00%	31.15%	23.35%	21.72%

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

2022 Calculations

¹ ROE = 100 × Net income ÷ Equity
= 100 × 14,957 ÷ 35,581 = 42.04%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted equity
= 100 × 14,621 ÷ 40,826 = 35.81%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Visa Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Total assets	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Profitability Ratio
ROA¹	17.49%	14.85%	13.43%	16.65%	14.88%	9.85%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	14,621)	13,182)	11,173)	12,294)	9,014)	8,397)
Adjusted total assets	85,414)	82,816)	80,856)	72,550)	69,211)	67,896)
Profitability Ratio
Adjusted ROA²	17.12%	15.92%	13.82%	16.95%	13.02%	12.37%

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 14,957 ÷ 85,501 = 17.49%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 14,621 ÷ 85,414 = 17.12%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Visa Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Visa Inc. (NYSE:V)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Visa Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Visa Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)