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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2022
OR
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☐ | 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 | | |
(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:
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Title of each class | | Trading Symbol | | Name of each exchange on which registered |
Class A Common Stock, par value $0.0001 per share | | V | | New York Stock Exchange |
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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.
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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 April 20, 2022, there were 1,645,719,350 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 10,045,333 shares outstanding of the registrant’s class C common stock, par value $0.0001 per share.
VISA INC.
TABLE OF CONTENTS
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PART I. | | |
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Item 1. | | |
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Item 2. | | |
Item 3. | | |
Item 4. | | |
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PART II. | | |
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Item 1. | | |
Item 1A. | | |
Item 2. | | |
Item 3. | | |
Item 4. | | |
Item 5. | | |
Item 6. | | |
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PART I. FINANCIAL INFORMATION
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ITEM 1. | Financial Statements (Unaudited) |
VISA INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| | | | | | | | | | | |
| March 31, 2022 | | September 30, 2021 |
| (in millions, except per share data) |
Assets | | | |
Cash and cash equivalents | $ | 12,299 | | | $ | 16,487 | |
Restricted cash equivalents—U.S. litigation escrow | 882 | | | 894 | |
Investment securities | 1,230 | | | 2,025 | |
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Settlement receivable | 1,632 | | | 1,758 | |
Accounts receivable | 2,135 | | | 1,968 | |
Customer collateral | 2,309 | | | 2,260 | |
Current portion of client incentives | 1,309 | | | 1,359 | |
Prepaid expenses and other current assets | 2,295 | | | 856 | |
Total current assets | 24,091 | | | 27,607 | |
Investment securities | 2,296 | | | 1,705 | |
Client incentives | 3,256 | | | 3,245 | |
Property, equipment and technology, net | 3,120 | | | 2,715 | |
Goodwill | 18,143 | | | 15,958 | |
Intangible assets, net | 27,006 | | | 27,664 | |
Other assets | 3,896 | | | 4,002 | |
Total assets | $ | 81,808 | | | $ | 82,896 | |
Liabilities | | | |
Accounts payable | $ | 182 | | | $ | 266 | |
Settlement payable | 2,409 | | | 2,443 | |
Customer collateral | 2,309 | | | 2,260 | |
Accrued compensation and benefits | 877 | | | 1,211 | |
Client incentives | 5,436 | | | 5,243 | |
Accrued liabilities | 3,172 | | | 2,334 | |
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Current maturities of debt | 3,548 | | | 999 | |
Accrued litigation | 769 | | | 983 | |
Total current liabilities | 18,702 | | | 15,739 | |
Long-term debt | 17,479 | | | 19,978 | |
Deferred tax liabilities | 6,081 | | | 6,128 | |
Other liabilities | 3,557 | | | 3,462 | |
Total liabilities | 45,819 | | | 45,307 | |
Equity | | | |
Preferred stock, $0.0001 par value, 25 shares authorized and 5 shares issued and outstanding as follows: | | | |
Series A convertible participating preferred stock, less than one shares issued and outstanding at March 31, 2022 and September 30, 2021 (the “series A preferred stock”) | 422 | | | 486 | |
Series B convertible participating preferred stock, 2 shares issued and outstanding at March 31, 2022 and September 30, 2021 (the “series B preferred stock”) | 1,045 | | | 1,071 | |
Series C convertible participating preferred stock, 3 shares issued and outstanding at March 31, 2022 and September 30, 2021 (the “series C preferred stock”) | 1,520 | | | 1,523 | |
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,648 and 1,677 shares issued and outstanding at March 31, 2022 and September 30, 2021 respectively | — | | | — | |
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at March 31, 2022 and September 30, 2021 | — | | | — | |
Class C common stock, $0.0001 par value, 1,097 shares authorized, 10 shares issued and outstanding at March 31, 2022 and September 30, 2021 | — | | | — | |
| | | |
Right to recover for covered losses | (120) | | | (133) | |
Additional paid-in capital | 18,876 | | | 18,855 | |
Accumulated income | 14,651 | | | 15,351 | |
Accumulated other comprehensive income (loss), net: | | | |
Investment securities | (41) | | | (1) | |
Defined benefit pension and other postretirement plans | (48) | | | (49) | |
Derivative instruments | (136) | | | (257) | |
Foreign currency translation adjustments | (180) | | | 743 | |
Total accumulated other comprehensive income (loss), net | (405) | | | 436 | |
Total equity | 35,989 | | | 37,589 | |
Total liabilities and equity | $ | 81,808 | | | $ | 82,896 | |
See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
4
VISA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
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| Three Months Ended March 31, | | Six Months Ended March 31, |
| 2022 | | 2021 | | 2022 | | 2021 |
| (in millions, except per share data) |
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Net revenues | $ | 7,189 | | | $ | 5,729 | | | $ | 14,248 | | | $ | 11,416 | |
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Operating Expenses | | | | | | | |
Personnel | 1,226 | | | 1,114 | | | 2,351 | | | 2,095 | |
Marketing | 314 | | | 206 | | | 594 | | | 411 | |
Network and processing | 190 | | | 179 | | | 380 | | | 352 | |
Professional fees | 125 | | | 82 | | | 225 | | | 165 | |
Depreciation and amortization | 207 | | | 201 | | | 405 | | | 398 | |
General and administrative | 325 | | | 363 | | | 567 | | | 566 | |
Litigation provision | — | | | 3 | | | 148 | | | 4 | |
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Total operating expenses | 2,387 | | | 2,148 | | | 4,670 | | | 3,991 | |
Operating income | 4,802 | | | 3,581 | | | 9,578 | | | 7,425 | |
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Non-operating Income (Expense) | | | | | | | |
Interest expense, net | (134) | | | (121) | | | (268) | | | (257) | |
Investment income and other | (126) | | | 168 | | | 129 | | | 208 | |
Total non-operating income (expense) | (260) | | | 47 | | | (139) | | | (49) | |
Income before income taxes | 4,542 | | | 3,628 | | | 9,439 | | | 7,376 | |
Income tax provision | 895 | | | 602 | | | 1,833 | | | 1,224 | |
Net income | $ | 3,647 | | | $ | 3,026 | | | $ | 7,606 | | | $ | 6,152 | |
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Basic Earnings Per Share | | | | | | | |
Class A common stock | $ | 1.70 | | | $ | 1.38 | | | $ | 3.54 | | | $ | 2.80 | |
Class B common stock | $ | 2.76 | | | $ | 2.24 | | | $ | 5.74 | | | $ | 4.55 | |
Class C common stock | $ | 6.82 | | | $ | 5.52 | | | $ | 14.16 | | | $ | 11.22 | |
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Basic Weighted-average Shares Outstanding | | | | | | | |
Class A common stock | 1,654 | | | 1,695 | | | 1,662 | | | 1,695 | |
Class B common stock | 245 | | | 245 | | | 245 | | | 245 | |
Class C common stock | 10 | | | 11 | | | 10 | | | 11 | |
| | | | | | | |
Diluted Earnings Per Share | | | | | | | |
Class A common stock | $ | 1.70 | | | $ | 1.38 | | | $ | 3.54 | | | $ | 2.80 | |
Class B common stock | $ | 2.75 | | | $ | 2.24 | | | $ | 5.73 | | | $ | 4.54 | |
Class C common stock | $ | 6.81 | | | $ | 5.52 | | | $ | 14.15 | | | $ | 11.20 | |
| | | | | | | |
Diluted Weighted-average Shares Outstanding | | | | | | | |
Class A common stock | 2,142 | | | 2,193 | | | 2,150 | | | 2,196 | |
Class B common stock | 245 | | | 245 | | | 245 | | | 245 | |
Class C common stock | 10 | | | 11 | | | 10 | | | 11 | |
See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
5
VISA INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Six Months Ended March 31, |
| 2022 | | 2021 | | 2022 | | 2021 |
| (in millions) |
Net income | $ | 3,647 | | | $ | 3,026 | | | $ | 7,606 | | | $ | 6,152 | |
Other comprehensive income (loss), net of tax: | | | | | | | |
Investment securities: | | | | | | | |
Net unrealized gain (loss) | (40) | | | (1) | | | (50) | | | (2) | |
Income tax effect | 8 | | | — | | | 10 | | | — | |
| | | | | | | |
| | | | | | | |
Defined benefit pension and other postretirement plans: | | | | | | | |
Net unrealized actuarial gain (loss) and prior service credit (cost) | (2) | | | (2) | | | (1) | | | (3) | |
Income tax effect | — | | | 1 | | | — | | | 2 | |
Reclassification adjustments | 1 | | | 3 | | | 2 | | | 6 | |
Income tax effect | — | | | — | | | — | | | (1) | |
Derivative instruments: | | | | | | | |
Net unrealized gain (loss) | 77 | | | 280 | | | 191 | | | (17) | |
Income tax effect | (13) | | | (57) | | | (35) | | | 6 | |
Reclassification adjustments | (33) | | | 5 | | | (39) | | | (13) | |
Income tax effect | 4 | | | — | | | 4 | | | 5 | |
Foreign currency translation adjustments | (335) | | | (1,011) | | | (923) | | | 35 | |
Other comprehensive income (loss), net of tax | (333) | | | (782) | | | (841) | | | 18 | |
Comprehensive income | $ | 3,314 | | | $ | 2,244 | | | $ | 6,765 | | | $ | 6,170 | |
See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
6
VISA INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2022 |
| Preferred Stock | | Common Stock | | Preferred Stock | | Right to Recover for Covered Losses | | Additional Paid-In Capital | | Accumulated Income | | Accumulated Other Comprehensive Income (Loss), Net | | Total Equity |
| Series A | | Series B | | Series C | | Class A | | Class B | | Class C | |
| (in millions, except per share data) |
Balance as of December 31, 2021 | — | | (1) | 2 | | | 3 | | | 1,661 | | | 245 | | | 10 | | | $ | 2,995 | | | $ | (111) | | | $ | 18,776 | | | $ | 14,606 | | | $ | (72) | | | $ | 36,194 | |
Net income | | | | | | | | | | | | | | | | | | | 3,647 | | | | | 3,647 | |
Other comprehensive income (loss), net of tax | | | | | | | | | | | | | | | | | | | | | (333) | | | (333) | |
Comprehensive income | | | | | | | | | | | | | | | | | | | | | | | 3,314 | |
| | | | | | | | | | | | | | | | | | | | | | | |
VE territory covered losses incurred | | | | | | | | | | | | | | | (9) | | | | | | | | | (9) | |
| | | | | | | | | | | | | | | | | | | | | | | |
Conversion of series A preferred stock upon sales into public market | — | | (1) | | | | | — | | (1) | | | | | (8) | | | | | 8 | | | | | | | — | |
Conversion of class C common stock upon sales into public market | | | | | | | — | | (1) | | | — | | (1) | | | | | | | | | | | — | |
Share-based compensation, net of forfeitures | | | | | | | | | | | | | | | | | 190 | | | | | | | 190 | |
Vesting of restricted stock and performance-based shares | | | | | | | — | | (1) | | | | | | | | | | | | | | | — | |
Restricted stock and performance-based shares settled in cash for taxes | | | | | | | — | | (1) | | | | | | | | | (3) | | | | | | | (3) | |
Cash proceeds from issuance of class A common stock under employee equity plans | | | | | | | 2 | | | | | | | | | | | 54 | | | | | | | 54 | |
Cash dividends declared and paid, at a quarterly amount of $0.375 per class A common stock | | | | | | | | | | | | | | | | | | | (802) | | | | | (802) | |
Repurchase of class A common stock | | | | | | | (15) | | | | | | | | | | | (149) | | | (2,800) | | | | | (2,949) | |
Balance as of March 31, 2022 | — | | (1) | 2 | | | 3 | | | 1,648 | | | 245 | | | 10 | | | $ | 2,987 | | | $ | (120) | | | $ | 18,876 | | | $ | 14,651 | | | $ | (405) | | | $ | 35,989 | |
(1)Increase, decrease or balance is less than one million shares.
See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
7
VISA INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY—(Continued)
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended March 31, 2022 |
| Preferred Stock | | Common Stock | | Preferred Stock | | Right to Recover for Covered Losses | | Additional Paid-In Capital | | Accumulated Income | | Accumulated Other Comprehensive Income (Loss), Net | | Total Equity |
| Series A | | Series B | | Series C | | Class A | | Class B | | Class C | |
| (in millions, except per share data) |
Balance as of September 30, 2021 | — | | (1) | 2 | | | 3 | | | 1,677 | | | 245 | | | 10 | | | $ | 3,080 | | | $ | (133) | | | $ | 18,855 | | | $ | 15,351 | | | $ | 436 | | | $ | 37,589 | |
Net income | | | | | | | | | | | | | | | | | | | 7,606 | | | | | 7,606 | |
Other comprehensive income (loss), net of tax | | | | | | | | | | | | | | | | | | | | | (841) | | | (841) | |
Comprehensive income | | | | | | | | | | | | | | | | | | | | | | | 6,765 | |
VE territory covered losses incurred | | | | | | | | | | | | | | | (16) | | | | | | | | | (16) | |
Recovery through conversion rate adjustment | | | | | | | | | | | | | (29) | | | 29 | | | | | | | | | — | |
Conversion of series A preferred stock upon sales into public market | — | | (1) | | | | | 1 | | | | | | | (64) | | | | | 64 | | | | | | | — | |
Conversion of class C common stock upon sales into public market | | | | | | | — | | (1) | | | — | | (1) | | | | | | | | | | | — | |
Share-based compensation, net of forfeitures | | | | | | | | | | | | | | | | | 318 | | | | | | | 318 | |
Vesting of restricted stock and performance-based shares | | | | | | | 2 | | | | | | | | | | | | | | | | | — | |
Restricted stock and performance-based shares settled in cash for taxes | | | | | | | — | | (1) | | | | | | | | | (116) | | | | | | | (116) | |
Cash proceeds from issuance of class A common stock under employee equity plans | | | | | | | 2 | | | | | | | | | | | 113 | | | | | | | 113 | |
Cash dividends declared and paid, at a quarterly amount of $0.375 per class A common stock | | | | | | | | | | | | | | | | | | | (1,611) | | | | | (1,611) | |
Repurchase of class A common stock | | | | | | | (34) | | | | | | | | | | | (358) | | | (6,695) | | | | | (7,053) | |
Balance as of March 31, 2022 | — | | (1) | 2 | | | 3 | | | 1,648 | | | 245 | | | 10 | | | $ | 2,987 | | | $ | (120) | | | $ | 18,876 | | | $ | 14,651 | | | $ | (405) | | | $ | 35,989 | |
(1)Increase, decrease or balance is less than one million shares.
See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
8
VISA INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY—(Continued)
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2021 |
| Preferred Stock | | Common Stock | | Preferred Stock | | Right to Recover for Covered Losses | | Additional Paid-In Capital | | Accumulated Income | | Accumulated Other Comprehensive Income (Loss), Net | | Total Equity |
| Series A | | Series B | | Series C | | Class A | | Class B | | Class C | |
| (in millions, except per share data) |
Balance as of December 31, 2020 | — | | (1) | 2 | | | 3 | | | 1,696 | | | 245 | | | 11 | | | $ | 3,683 | | | $ | (34) | | | $ | 18,063 | | | $ | 14,813 | | | $ | 1,154 | | | $ | 37,679 | |
Net income | | | | | | | | | | | | | | | | | | | 3,026 | | | | | 3,026 | |
Other comprehensive income (loss), net of tax | | | | | | | | | | | | | | | | | | | | | (782) | | | (782) | |
Comprehensive income | | | | | | | | | | | | | | | | | | | | | | | 2,244 | |
| | | | | | | | | | | | | | | | | | | | | | | |
VE territory covered losses incurred | | | | | | | | | | | | | | | (7) | | | | | | | | | (7) | |
| | | | | | | | | | | | | | | | | | | | | | | |
Conversion of series A preferred stock upon sales into public market | — | | (1) | | | | | 5 | | | | | | | (336) | | | | | 336 | | | | | | | — | |
Conversion of class C common stock upon sales into public market | | | | | | | — | | (1) | | | — | | (1) | | | | | | | | | | | — | |
Share-based compensation, net of forfeitures | | | | | | | | | | | | | | | | | 153 | | | | | | | 153 | |
Vesting of restricted stock and performance-based shares | | | | | | | — | | (1) | | | | | | | | | | | | | | | — | |
Restricted stock and performance-based shares settled in cash for taxes | | | | | | | — | | (1) | | | | | | | | | (6) | | | | | | | (6) | |
Cash proceeds from issuance of class A common stock under employee equity plans | | | | | | | 1 | | | | | | | | | | | 47 | | | | | | | 47 | |
Cash dividends declared and paid, at a quarterly amount of $0.32 per class A common stock | | | | | | | | | | | | | | | | | | | (701) | | | | | (701) | |
Repurchase of class A common stock | | | | | | | (8) | | | | | | | | | | | (88) | | | (1,625) | | | | | (1,713) | |
Balance as of March 31, 2021 | — | | (1) | 2 | | | 3 | | | 1,694 | | | 245 | | | 11 | | | $ | 3,347 | | | $ | (41) | | | $ | 18,505 | | | $ | 15,513 | | | $ | 372 | | | $ | 37,696 | |
(1)Increase, decrease or balance is less than one million shares.
See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
9
VISA INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY—(Continued)
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended March 31, 2021 |
| Preferred Stock | | Common Stock | | Preferred Stock | | Right to Recover for Covered Losses | | Additional Paid-In Capital | | Accumulated Income | | Accumulated Other Comprehensive Income (Loss), Net | | Total Equity |
| Series A | | Series B | | Series C | | Class A | | Class B | | Class C | |
| (in millions, except per share data) |
Balance as of September 30, 2020 | — | | (1) | 2 | | | 3 | | | 1,683 | | | 245 | | | 11 | | | $ | 5,086 | | | $ | (39) | | | $ | 16,721 | | | $ | 14,088 | | | $ | 354 | | | $ | 36,210 | |
Net income | | | | | | | | | | | | | | | | | | | 6,152 | | | | | 6,152 | |
Other comprehensive income (loss), net of tax | | | | | | | | | | | | | | | | | | | | | 18 | | | 18 | |
Comprehensive income | | | | | | | | | | | | | | | | | | | | | | | 6,170 | |
Adoption of new accounting standards | | | | | | | | | | | | | | | | | | | 3 | | | | | 3 | |
VE territory covered losses incurred | | | | | | | | | | | | | | | (17) | | | | | | | | | (17) | |
Recovery through conversion rate adjustment | | | | | | | | | | | | | (15) | | | 15 | | | | | | | | | — | |
Conversion of series A preferred stock upon sales into public market | — | | (1) | | | | | 25 | | | | | | | (1,724) | | | | | 1,724 | | | | | | | — | |
Conversion of class C common stock upon sales into public market | | | | | | | — | | (1) | | | — | | (1) | | | | | | | | | | | — | |
Share-based compensation, net of forfeitures | | | | | | | |
| | | | | | | | | 275 | | | | | | | 275 | |
Vesting of restricted stock and performance-based shares | | | | | | | 3 | | | | | | | | | | | | | | | | | — | |
Restricted stock and performance-based shares settled in cash for taxes | | | | | | | (1) | | | | | | | | | | | (140) | | | | | | | (140) | |
Cash proceeds from issuance of class A common stock under employee equity plans | | | | | | | 1 | | | | | | | | | | | 108 | | | | | | | 108 | |
Cash dividends declared and paid, at a quarterly amount of $0.32 per class A common stock | | | | | | | | | | | | | | | | | | | (1,404) | | | | | (1,404) | |
Repurchase of class A common stock | | | | | | | (17) | | | | | | | | | | | (183) | | | (3,326) | | | | | (3,509) | |
Balance as of March 31, 2021 | — | | (1) | 2 | | | 3 | | | 1,694 | | | 245 | | | 11 | | | $ | 3,347 | | | $ | (41) | | | $ | 18,505 | | | $ | 15,513 | | | $ | 372 | | | $ | 37,696 | |
(1)Increase, decrease or balance is less than one million shares.
See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
10
VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| | | | | | | | | | | |
| Six Months Ended March 31, |
| 2022 | | 2021 |
| (in millions) |
Operating Activities | | | |
Net income | $ | 7,606 | | | $ | 6,152 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | |
Client incentives | 4,865 | | | 3,850 | |
Share-based compensation | 318 | | | 275 | |
Depreciation and amortization of property, equipment, technology and intangible assets | 405 | | | 398 | |
Deferred income taxes | 21 | | | (27) | |
VE territory covered losses incurred | (16) | | | (17) | |
(Gains) losses on equity investments, net | (104) | | | (172) | |
Other | (61) | | | (48) | |
Change in operating assets and liabilities: | | | |
Settlement receivable | 3 | | | (127) | |
Accounts receivable | (173) | | | (165) | |
Client incentives | (4,503) | | | (3,262) | |
Other assets | (291) | | | (116) | |
Accounts payable | (75) | | | (41) | |
Settlement payable | 111 | | | 210 | |
Accrued and other liabilities | (173) | | | (39) | |
Accrued litigation | (212) | | | (29) | |
Net cash provided by (used in) operating activities | 7,721 | | | 6,842 | |
Investing Activities | | | |
Purchases of property, equipment and technology | (440) | | | (318) | |
Investment securities: | | | |
Purchases | (1,948) | | | (2,015) | |
Proceeds from maturities and sales | 1,975 | | | 3,871 | |
Acquisitions, net of cash and restricted cash acquired | (1,945) | | | (75) | |
Purchases of / contributions to other investments | (55) | | | (30) | |
Other investing activities | 81 | | | 41 | |
Net cash provided by (used in) investing activities | (2,332) | | | 1,474 | |
Financing Activities | | | |
Repurchase of class A common stock | (7,053) | |