Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Visa Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Client incentives	10,295)	8,367)	6,664)	6,173)	5,491)	4,565)
Share-based compensation	602)	542)	416)	407)	327)	235)
Depreciation and amortization of property, equipment, technology and intangible assets	861)	804)	767)	656)	613)	556)
Deferred income taxes	(336)	873)	307)	214)	(1,277)	1,700)
VE territory covered losses incurred	(43)	(147)	(37)	(172)	(11)	(209)
(Gains) losses on equity investments, net	264)	(712)	(101)	(131)	—)	—)
Charitable contribution of Visa Inc. shares	—)	—)	—)	—)	—)	192)
Other	(94)	(109)	(44)	(140)	(74)	50)
Settlement receivable	(397)	(468)	1,858)	(1,533)	(223)	94)
Accounts receivable	(97)	(343)	(43)	(333)	(70)	(54)
Client incentives	(9,351)	(7,510)	(8,081)	(6,430)	(4,682)	(4,628)
Other assets	(666)	(147)	(402)	(310)	(160)	(252)
Accounts payable	67)	88)	21)	(24)	3)	(30)
Settlement payable	1,256)	679)	(2,384)	1,931)	262)	(176)
Accrued and other liabilities	1,055)	929)	923)	627)	1,761)	465)
Accrued litigation	476)	70)	(290)	(231)	452)	1)
Change in operating assets and liabilities	(7,657)	(6,702)	(8,398)	(6,303)	(2,657)	(4,580)
Adjustments to reconcile net income to net cash provided by operating activities	3,892)	2,916)	(426)	704)	2,412)	2,509)
Net cash provided by operating activities	18,849)	15,227)	10,440)	12,784)	12,713)	9,208)
Purchases of property, equipment and technology	(970)	(705)	(736)	(756)	(718)	(707)
Investment securities, purchases	(5,997)	(5,111)	(2,075)	(2,653)	(5,772)	(3,238)
Investment securities, proceeds from maturities and sales	4,585)	5,701)	4,510)	3,996)	3,636)	5,012)
Acquisitions, net of cash and restricted cash acquired	(1,948)	(75)	(77)	(699)	(196)	(302)
Purchases of other investments	(86)	(71)	(267)	(501)	(50)	(46)
Other investing activities	128)	109)	72)	22)	16)	16)
Net cash (used in) provided by investing activities	(4,288)	(152)	1,427)	(591)	(3,084)	735)
Repurchase of class A common stock	(11,589)	(8,676)	(8,114)	(8,607)	(7,192)	(6,891)
Repayments of debt	(1,000)	(3,000)	—)	—)	(1,750)	—)
Dividends paid	(3,203)	(2,798)	(2,664)	(2,269)	(1,918)	(1,579)
Proceeds from issuance of senior notes	3,218)	—)	7,212)	—)	—)	2,488)
Payment of deferred purchase consideration related to the Visa Europe acquisition	—)	—)	—)	(1,236)	—)	—)
Debt issuance costs	—)	—)	—)	—)	—)	(15)
Deposit into U.S. litigation escrow account, U.S. retrospective responsibility plan	—)	—)	—)	—)	(600)	—)
Payments from U.S. litigation escrow account, U.S. retrospective responsibility plan	—)	—)	—)	—)	150)	—)
Cash proceeds from issuance of class A common stock under equity plans	196)	208)	190)	162)	164)	149)
Restricted stock and performance-based shares settled in cash for taxes	(120)	(144)	(160)	(111)	(94)	(76)
Payments to settle derivative instruments	—)	—)	(333)	—)	—)	—)
Other financing activities	(198)	—)	(99)	—)	—)	—)
Net cash used in financing activities	(12,696)	(14,410)	(3,968)	(12,061)	(11,240)	(5,924)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(1,287)	(37)	440)	(277)	(101)	236)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	578)	628)	8,339)	(145)	(1,712)	4,255)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	19,799)	19,171)	10,832)	10,977)	9,874)	5,619)
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year	20,377)	19,799)	19,171)	10,832)	8,162)	9,874)

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).

Net Income: Net income demonstrated a general upward trend from US$6,699 million in 2017 to US$14,957 million in 2022, with a minor decrease observed in 2020.
Client Incentives: Client incentives increased steadily from US$4,565 million in 2017 to US$10,295 million in 2022, representing a significant rise in expenses aimed at client retention or acquisition.
Share-based Compensation: This expense gradually increased from US$235 million in 2017 to US$602 million in 2022, reflecting growing compensation costs tied to stock-based awards.
Depreciation and Amortization: Depreciation and amortization expenses rose from US$556 million in 2017 to US$861 million in 2022, indicating ongoing investments in property, equipment, technology, and intangible assets.
Deferred Income Taxes: Deferred income taxes exhibited volatility, with substantial fluctuation including negative values in 2018 and 2022, indicating variable tax recognition timing or tax strategies.
Gains/Losses on Equity Investments: Net equity investment results were mixed, with notable losses in 2019 and 2020 followed by gains in 2021 and a reversal to losses in 2022.
Other Items (Various): Other miscellaneous items mostly reflected negative values in recent years, suggesting occasional impairments or losses affecting the financials.
Settlement and Accounts Receivable/Payable: Settlement receivable and payable figures showed large fluctuations, reflecting volatile settlement activities. Accounts receivable and payable also varied, indicating changes in credit and payment cycles.
Accrued Liabilities and Litigation: Accrued liabilities remained at elevated but stable levels, while accrued litigation exhibited large swings, including a notable increase in 2022, possibly linked to legal matters or provisions.
Change in Operating Assets and Liabilities: A negative trend persisted in changes to operating assets and liabilities, reflecting increased working capital demands and cash outflows associated with daily operations.
Net Cash Provided by Operating Activities: Operating cash flow grew from US$9,208 million in 2017 to US$18,849 million in 2022, highlighting strong cash generation capability despite pandemic-related impacts.
Capital Expenditures and Investments: Capital expenditures on property, equipment, and technology remained relatively stable, with a slight increase in 2022. Investment securities purchases and sales fluctuated significantly, with large acquisitions in 2022 suggesting strategic reinvestments.
Investing Activities: Net cash from investing activities shifted from positive in 2017 and 2020 to negative in other years, especially a sharp decline in 2022, indicating increased outflows for acquisitions and investments.
Financing Activities: Significant repurchases of Class A common stock persisted throughout 2017–2022, increasing notably in 2022. Dividend payments steadily increased, reflecting consistent shareholder returns. Debt repayments and issuances showed irregular patterns, with notable repayments in 2018 and 2021 and issuances in 2017, 2020, and 2022.
Cash and Cash Equivalents: Cash balances increased overall from US$5,619 million in 2017 to US$20,377 million in 2022, with fluctuations between years indicating variability in cash management and liquidity needs.
Exchange Rate Effects: Effects of exchange rate changes on cash balances showed variability, with negative impacts in recent years, most notably in 2022, potentially affecting reported cash positions due to currency fluctuations.

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Visa Inc. (NYSE:V)

Cash Flow Statement