VISA, INC. This management's discussion and analysis provides a review of the results of operations, financial condition and the liquidity and capital resources ofVisa 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 elsewhere in this report. Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of theU.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 of the coronavirus ("COVID-19"); our future operations, prospects, developments, strategies and growth of our business; anticipated expansion of our products in certain countries; industry developments; anticipated 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 consolidated financial statements. Forward-looking statements generally are identified by words such as "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 ourSEC filings, including our Annual Report on Form 10-K, for the year endedSeptember 30, 2019 and our 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. 27
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Overview
Visa is a global payments technology company that enables fast, secure and reliable electronic payments across more than 200 countries and territories. We facilitate global commerce through the transfer of value and information among a global network of consumers, merchants, financial institutions, businesses, strategic partners and government entities. Our advanced transaction processing network, VisaNet, enables authorization, clearing and settlement of payment transactions and allows us to provide our financial institution and merchant clients a wide range of products, platforms and value-added services. Financial overview. Our as-reportedU.S. GAAP and non-GAAP net income and diluted earnings per share are as follows: Three Months Ended Six Months Ended March 31, 2020 vs. 2019 March 31, 2020 vs. 2019 % % 2020 2019 Change(1) 2020 2019 Change(1) (in millions, except percentages and per share data) Net income, as reported$ 3,084 $ 2,977 4 %$ 6,356 $ 5,954 7 % Diluted earnings per share, as reported$ 1.38 $ 1.31 6 %$ 2.85 $ 2.61 9 % Non-GAAP net income(2)$ 3,098 $ 2,912 6 %$ 6,370 $ 5,892 8 % Non-GAAP diluted earnings per share(2)$ 1.39 $ 1.28 9 %$ 2.85 $ 2.58 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 non-GAAP financial results, see tables in
Non-GAAP financial results below.
Coronavirus. While we have been actively monitoring the worldwide spread of COVID-19, the extent to which COVID-19 will ultimately impact our business is difficult to predict. Our priority has been the safety of our employees, including comprehensive plans to support employee wellness, as well as support for our clients and the communities affected. Although most of our staff are now working remotely, our network infrastructure and application performance continue to perform well and our business operations have comprehensive and coordinated plans in place to address business continuity and recovery needs around the world. We are also in very close and regular contact with clients, partners and governments globally to help them navigate these challenging times. In the month ofMarch 2020 , domestic spending, most notably in travel, restaurants, entertainment and fuel decreased as countries imposed social distancing, shelter-in-place or total lock-down orders. Declines in cross-border volume as well as processed transactions negatively impacted international transaction and data processing revenues for the three months endedMarch 31, 2020 . Service revenues for the three months endedMarch 31, 2020 were not significantly impacted, as they were recognized on the payments volume for the three months endedDecember 31, 2019 . While we have not incurred operational disruptions thus far from the COVID-19 outbreak, the impact that COVID-19 will have on our business is difficult to predict due to numerous uncertainties, including the severity and duration of the outbreak, actions that may be taken by governmental authorities, the impact to the business of our clients and other factors identified in Part II, Item 1A "Risk Factors" in this Form 10-Q. We will continue to evaluate the nature and extent of the impact to our business. Highlights for the first half of fiscal 2020. We recorded net revenues of$5.9 billion and$11.9 billion for the three and six months endedMarch 31, 2020 , respectively, an increase of 7% and 8%, respectively, over the prior-year comparable periods, driven by the year-over-year changes in nominal payments volume, nominal cross-border volume and processed transactions, which were not significantly impacted by COVID-19 until the latter part ofMarch 2020 . Exchange rate movements in the three and six months endedMarch 31, 2020 , as partially mitigated by our hedging program, negatively impacted our net revenues growth by approximately one percentage point. Total operating expenses were$1.9 billion and$4.0 billion for the three and six months endedMarch 31, 2020 , respectively, an increase of 4% and 9% on a GAAP and an increase of 3% and 8% on a non-GAAP basis, respectively, over the prior-year comparable periods. The increase was primarily due to higher personnel, depreciation and amortization, general and administrative, and networking related expenses, as we continue to invest in our business growth. 28
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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 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. Starting in fiscal 2020, we revised our non-GAAP methodology to exclude the impact of gains and losses on our equity investments, amortization of acquired intangible assets and acquisition-related costs for acquisitions that closed in fiscal 2019 and subsequent periods. Prior year amounts have been restated to conform to our current presentation. • 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 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.
During the three months ended
unrealized losses of $2 million . During the six months ended March 31,
2020 , we recorded net realized and unrealized gains of $11 million and
related tax expense of
periods, we recorded net realized and unrealized gains of
million, respectively.
• 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 ouracquisitions, 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. During the three and six months ended
recorded amortization of acquired intangible assets of
million, respectively, and related tax benefit of $2 million and $5
million , respectively. There were no comparable amounts during the three
and six months ended March 31, 2019 since we are only adjusting for
transactions that closed in fiscal 2019 and subsequent periods.
• 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. It also includes
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.
During the three and six months ended
acquisition-related costs of
related tax benefit of
ended
and six months ended
transactions that closed in fiscal 2019 and subsequent periods.
Non-GAAP operating expense, 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 withU.S. GAAP. The following tables reconcile our as-reported financial measures, calculated in accordance withU.S. GAAP, to our respective non-GAAP financial measures for the three and six months endedMarch 31, 2020 and 2019.
Three Months Ended
Effective
Operating Non-operating Income Income Tax Income Tax Diluted Earnings
Expenses (Expense) Provision Rate(1) Net Income Per Share(1)
(in millions, except percentages and per share data)
As reported $ 1,930 $ (95 ) $ 745 19.4 % $ 3,084 $ 1.38
(Gains) Losses on equity
investments, net - 2 - 2 -
Amortization of acquired
intangible assets (11 ) - 2 9 -
Acquisition-related costs (5 ) - 2 3 -
Non-GAAP $ 1,914 $ (93 ) $ 749 19.5 % $ 3,098 $ 1.39
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Six Months Ended March 31, 2020
Effective
Operating Non-operating Income Income Tax Income Tax Diluted Earnings
Expenses (Expense) Provision Rate(1) Net Income Per Share(1)
(in millions, except percentages and per share data)
As reported $ 3,968 $ (137 ) $ 1,447 18.5 % $ 6,356 $ 2.85
(Gains) Losses on equity
investments, net - (11 ) (3 ) (8 ) -
Amortization of acquired
intangible assets (22 ) - 5 17 0.01
Acquisition-related costs (7 ) - 2 5 -
Non-GAAP $ 3,939 $ (148 ) $ 1,451 18.6 % $ 6,370 $ 2.85
Three Months Ended
Effective
Operating Non-operating Income Income Tax Income Tax Diluted Earnings
Expenses (Expense) Provision Rate(1) Net Income Per Share(1)
(in millions, except percentages and per share data)
As reported $ 1,853 $ 36 $ 700 19.0 % $ 2,977 $ 1.31
(Gains) Losses on equity
investments, net - (84 ) (19 ) (65 ) (0.03 )
Non-GAAP $ 1,853 $ (48 ) $ 681 18.9 % $ 2,912 $ 1.28 Six Months Ended
Effective
Operating Non-operating Income Income Tax Income Tax Diluted Earnings
Expenses (Expense) Provision Rate(1) Net Income Per Share(1)
(in millions, except percentages and per share data)
As reported $ 3,642 $ (51 ) $ 1,353 18.5 % $ 5,954 $ 2.61
(Gains) Losses on equity
investments, net - (80 ) (18 ) (62 ) (0.03 )
Non-GAAP $ 3,642 $ (131 ) $ 1,335 18.5 % $ 5,892 $ 2.58 (1) 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.
Common stock repurchases. InJanuary 2019 , our board of directors authorized an$8.5 billion share repurchase program and inJanuary 2020 , authorized an additional$9.5 billion share repurchase program. During the three months endedMarch 31, 2020 , we repurchased 18 million shares of our class A common stock in the open market for$3.1 billion . As ofMarch 31, 2020 , ourJanuary 2020 share repurchase program had remaining authorized funds of$8.1 billion for share repurchase. All share repurchase programs authorized prior toJanuary 2020 have been completed. See Note 10-Stockholders' Equity to our unaudited consolidated financial statements. Acquisition. OnJanuary 13, 2020 , we entered into a definitive agreement to acquirePlaid, Inc. for$5.3 billion . We will pay approximately$4.9 billion of cash and$0.4 billion of retention equity and deferred equity consideration. This acquisition is subject to customary closing conditions, including ongoing regulatory reviews and approvals, which are expected to be completed by the end of 2020. Senior notes. InApril 2020 , we issued fixed-rate senior notes in an aggregate principal amount of$4.0 billion , with maturities ranging between 7 and 20 years. See Note 8-Debt to our unaudited consolidated financial statements. Payments volume and transaction counts. 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. Nominal payments volume inthe United States posted high single-digit growth for the three and six months endedDecember 31, 2019 (1), driven mainly by consumer debit and commercial. Nominal international payments volume growth was negatively impacted by movements inU.S. dollar exchange rates. On a constant-dollar basis, which excludes the impact of exchange rate movements, our international payments volume growth rate for the three and six months endedDecember 31, 2019 was 8% and 9%, respectively. Growth in processed transactions reflects the ongoing worldwide shift to electronic payments, even with the decrease in processed transactions the latter part ofMarch 2020 as COVID-19 spread throughout the world. 30
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The following table presents nominal payments and cash volume:
United States International Visa Inc.
Three Months Ended December 31,(1) Three Months Ended December 31,(1) Three Months Ended December 31,(1)
% % %
2019 2018 Change(2) 2019 2018 Change(2) 2019 2018 Change(2)
(in billions, except percentages)
Nominal payments
volume
Consumer credit $ 424 $ 399 6 % $ 662 $ 637 4 % $ 1,086 $ 1,036 5 %
Consumer debit(3) 461 422 9 % 536 479 12 % 997 902 11 %
Commercial(4) 171 158 8 % 107 99 8 % 278 257 8 %
Total nominal
payments volume(2) $ 1,057 $ 980 8 % $ 1,304 $ 1,215 7 % $ 2,361 $ 2,194 8 %
Cash volume 145 142 2 % 575 587 (2 )% 719 729 (1 )%
Total nominal
volume(2),(5) $ 1,201 $ 1,121 7 % $ 1,879 $ 1,802 4 % $ 3,080 $ 2,923 5 %
United States International Visa Inc.
Six Months Ended December 31,(1) Six Months Ended December 31,(1) Six Months Ended December 31,(1)
% % %
2019 2018 Change(2) 2019 2018 Change(2) 2019 2018 Change(2)
(in billions, except percentages)
Nominal payments
volume
Consumer credit $ 829 $ 781 6 % $ 1,308 $ 1,251 5 % $ 2,137 $ 2,032 5 %
Consumer debit(3) 908 830 9 % 1,036 938 10 % 1,944 1,768 10 %
Commercial(4) 342 313 9 % 208 191 9 % 549 505 9 %
Total nominal
payments volume(2) $ 2,079 $ 1,925 8 % $ 2,552 $ 2,380 7 % $ 4,631 $ 4,305 8 %
Cash volume 292 286 2 % 1,140 1,166 (2 )% 1,432 1,452 (1 )%
Total nominal
volume(2),(5) $ 2,371 $ 2,211 7 % $ 3,692 $ 3,546 4 % $ 6,063 $ 5,757 5 %
The following table presents nominal and constant payments and cash volume
growth:
International Visa Inc. International Visa Inc.
Three Months Three Months Six Months Six Months
Ended December 31, Ended December 31, Ended December 31, Ended December 31,
2019 vs. 2018(1),(2) 2019 vs. 2018(1),(2) 2019 vs. 2018(1),(2) 2019 vs. 2018(1),(2)
Nominal Constant(6) Nominal Constant(6) Nominal Constant(6) Nominal Constant(6)
Payments volume growth
Consumer credit growth 4 % 5 % 5 % 6 % 5 % 6 % 5 % 6 %
Consumer debit growth(3) 12 % 12 % 11 % 11 % 10 % 13 % 10 % 11 %
Commercial growth(4) 8 % 10 % 8 % 9 % 9 % 11 % 9 % 10 %
Total payments volume growth(2) 7 % 8 % 8 % 8 % 7 % 9 % 8 % 9 %
Cash volume growth (2 )% (1 )% (1 )% (1 )% (2 )% (1 )% (1 )% - %
Total volume growth(2) 4 % 5 % 5 % 6 % 4 % 6 % 5 % 6 %
(1) Service revenues in a given quarter are assessed based on nominal payments
volume in the prior quarter. Therefore, service revenues reported for the
three and six months ended
payments volume reported by our financial institution clients for the three
and six months ended
(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) Total nominal volume is the sum of total nominal payments volume and cash
volume. Total nominal payments volume is the total monetary value of
transactions for goods and services that are purchased on cards and other
form factors carrying the
Cash volume generally consists of cash access transactions, balance access
transactions, balance transfers and convenience checks. Total nominal volume
is provided by our financial institution clients, subject to review by
On occasion, previously presented volume information may be updated.
Prior-period updates, other than the change to the payments volume
definition, are not material.
(6) Growth on a constant-dollar basis excludes the impact of foreign currency
fluctuations against the U.S. dollar.
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The following table provides the number of transactions involving cards and
other form factors carrying the
Three Months Ended March 31, Six Months Ended March 31,
% %
2020 2019 Change(1) 2020 2019 Change(1)
(in millions, exceptpercentages)
Visa processed transactions 34,941 32,544 7 % 72,716 66,476 9 %
(1) Figures in the table may not recalculate exactly due to rounding. Percentage
change is calculated based on unrounded numbers.
Results of OperationsNet Revenues The following table sets forth our net revenues earned in theU.S. and internationally: Three Months Ended Six Months Ended March 31, 2020 vs. 2019 March 31, 2020 vs. 2019 $ % $ % 2020 2019 Change Change(1) 2020 2019 Change Change(1) (in millions, except percentages) U.S.$ 2,650 $ 2,479 $ 171 7 %$ 5,367 $ 4,987 $ 380 8 % International 3,204 3,015 189 6 % 6,541 6,013 528 9 % Net revenues$ 5,854 $ 5,494 $ 360 7 %$ 11,908 $ 11,000 $ 908 8 %
(1) Figures in the table may not recalculate exactly due to rounding. Percentage
changes are calculated based on unrounded numbers.
Net revenues increased primarily due to the year-over-year changes in payments volume, cross-border volume and processed transactions, which were not significantly impacted by COVID-19 until the latter part ofMarch 2020 . The increase in revenues was also partially offset by the increase in client incentives. Our net revenues are impacted by the overall strengthening or weakening of theU.S. dollar as payments volume and related revenues denominated in local currencies are converted toU.S. dollars. Exchange rate movements in the three and six months endedMarch 31, 2020 , as partially mitigated by our hedging program, negatively impacted our net revenues growth by approximately one percentage point. The following table sets forth the components of our net revenues: Three Months Ended Six Months Ended March 31, 2020 vs. 2019 March 31, 2020 vs. 2019 $ % $ % 2020 2019 Change Change(1) 2020 2019 Change Change(1) (in millions, except percentages) Service revenues$ 2,623 $ 2,417 $ 206 9 %$ 5,178 $ 4,759 $ 419 9 % Data processing revenues 2,711 2,432 279 11 % 5,575 4,902 673 14 % International transaction revenues 1,833 1,796 37 2 % 3,851 3,647 204 6 % Other revenues 392 327 65 20 % 757 626 131 21 % Client incentives (1,705 ) (1,478 ) (227 ) 15 % (3,453 ) (2,934 ) (519 ) 18 % Net revenues$ 5,854 $ 5,494 $ 360 7 %$ 11,908 $ 11,000 $ 908 8 %
(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 8% growth in nominal payments
volume during the three and six month comparable periods as well as select
pricing modifications effective in 2019, partially offset by unfavorable
business mix. Service revenues for the three months ended
were not significantly impacted by COVID-19 as they were recognized on the
payments volume for the three months ended December 31, 2019 .
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• Data processing revenues increased mainly due to overall growth in
processed transactions of 7% and 9% during the three and six month
comparable periods, respectively, select pricing modifications effective
in 2019, as well as faster growth of our value-added services and
acquisition-related revenue. The growth of our data processing revenues
was negatively impacted in the latter part of
in processed transactions as COVID-19 spread throughout the world.
• International transaction revenues increased primarily due to select
pricing modifications effective in 2019. International transaction
revenues also reflected fluctuations in the volatility of a broad range of
currencies as well as a 4% decline and 2% growth in nominal cross-border
volumes during the three and six month comparable periods, respectively,
due to the decrease in cross-border volume through the quarter as COVID-19
spread throughout the world.
• Other revenues increased primarily due to higher revenues from value-added
services.
• Client incentives increased mainly due to incentives recognized onlong-term customer contracts that were initiated or renewed in the past 12
months and overall growth in global payments 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 execution of new contracts.
Operating Expenses
The following table sets forth components of our total operating expenses:
Three Months Ended Six Months Ended
March 31, 2020 vs. 2019 March 31, 2020 vs. 2019
$ % $ %
2020 2019 Change Change(1) 2020 2019 Change Change(1)
(in millions, except percentages)
Personnel $ 940 $ 894 $ 46 5 % $ 1,922 $ 1,701 $ 221 13 %
Marketing 235 241 (6 ) (3 )% 509 517 (8 ) (1 )%
Network and processing 183 171 12 7 % 364 344 20 6 %
Professional fees 103 101 2 2 % 209 192 17 9 %
Depreciation and
amortization 192 160 32 20 % 374 319 55 17 %
General and
administrative 269 264 5 2 % 582 540 42 8 %
Litigation provision 8 22 (14 ) (67 )% 8 29 (21 ) (73 )%
Total operating
expenses $ 1,930 $ 1,853 $ 77 4 % $ 3,968 $ 3,642 $ 326 9 %
(1) Figures in the table may not recalculate exactly due to rounding. Percentage
changes are calculated based on unrounded numbers.
• Personnel expenses increased primarily due to continued increase in
headcount offset by lower incentive compensation for the three-monthcomparable period. For the six-month comparable period, expenses increased
due to continued headcount growth in support of our investment strategy
for future growth.
• Network and processing expenses increased mainly due to continued
technology and processing network investments to support growth.
• Depreciation and amortization expenses increased primarily due toadditional depreciation and amortization from our on-going investments,
including acquisitions.
• General and administrative expenses increased mainly due toreclassification of certain expenses to general and administrative, higher
product enhancements costs in support of our business growth and higher
indirect taxes, offset by favorable currency fluctuations.
• Litigation provision decreased primarily due to lower accruals for
uncovered litigation.
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Non-operating Income (Expense)
The following table sets forth the components of our non-operating income
(expense):
Three Months Ended Six Months Ended
March 31, 2020 vs. 2019 March 31, 2020 vs. 2019
$ % $ %
2020 2019 Change Change(1) 2020 2019 Change Change(1)
(in millions, except percentages)
Interest expense, net $ (118 ) $ (140 ) $ 22 (16 )% $ (229 ) $ (285 ) $ 56 (20 )%
Investment income and
other 23 176 (153 ) (87 )% 92 234 (142 ) (61 )%
Total non-operating
income (expense) $ (95 ) $ 36 $ (131 ) (367 )% $ (137 ) $ (51 ) $ (86 ) 170 %
(1) Figures in the table may not recalculate exactly due to rounding. Percentage
changes are calculated based on unrounded numbers.
• Interest expense, net decreased primarily as a result of entering into
derivative instruments in fiscal 2019 that lowered the cost of borrowing
on a portion of our outstanding debt.
• Investment income and other decreased primarily due to lower gains on our
equity investments and lower interest income on our cash and investments.
Liquidity and Capital Resources
Cash Flow Data
The following table summarizes our cash flow activity for the periods presented:
Six Months Ended
March 31,
2020 2019
(in millions)
Total cash provided by (used in):
Operating activities $ 5,342 $ 5,358
Investing activities 2,441 (396 )
Financing activities (5,887 ) (5,486 )
Effect of exchange rate changes on cash and cash
equivalents 88 (171 ) Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents
$ 1,984
Operating activities. Cash provided by operating activities for the six months endedMarch 31, 2020 was slightly lower than the prior-year comparable period due to higher client incentives and timing of settlement. Partially offset by continued growth in our underlying business and receipt of the$467 million takedown payment associated with the Interchange Multidistrict Litigation. See Note 14-Legal Matters to our unaudited consolidated financial statements. Investing activities. Cash provided by investing activities for the six months endedMarch 31, 2020 increased primarily due to higher sales of investment securities and fewer purchases of investment securities as compared to the prior-year period. Financing activities. Cash used in financing activities for the six months endedMarch 31, 2020 was slightly higher than the prior-year comparable period primarily due to higher share repurchase and higher dividends paid. Partially offset by proceeds received from the issuance of commercial paper. See Note 8-Debt and Note 10-Stockholders' Equity to our unaudited consolidated financial statements. 34
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Sources of Liquidity Our primary sources of liquidity are cash on hand, cash flow from 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 available-for-sale 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 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. Our ability to access cost-effective capital could be impacted by global credit market conditions. 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. Commercial paper program. We maintain a commercial paper program to support our working capital requirements and for other general corporate purposes. The carrying amount outstanding atMarch 31, 2020 was$1.0 billion , with a weighted-average interest rate of 1.55% and remaining maturities of less than 12 months. See Note 8-Debt to our unaudited consolidated financial statements. Senior notes. InApril 2020 , we issued fixed-rate senior notes in an aggregate principal amount of$4.0 billion , with maturities ranging between 7 and 20 years. See Note 8-Debt to our unaudited consolidated financial statements. Uses of Liquidity There has been no significant change to our primary uses of liquidity sinceSeptember 30, 2019 , except as discussed below. Common stock repurchases. InJanuary 2020 , our board of directors authorized a$9.5 billion share repurchase program. During the six months endedMarch 31, 2020 , we repurchased 31 million shares of our class A common stock for$5.5 billion . As ofMarch 31, 2020 , ourJanuary 2020 share repurchase program had remaining authorized funds of$8.1 billion for share repurchase. See Note 10-Stockholders' Equity to our unaudited consolidated financial statements. Dividends. During the six months endedMarch 31, 2020 , we declared and paid$1.3 billion in dividends to holders of our common and preferred stock. OnApril 21, 2020 , our board of directors declared a cash dividend in the amount of$0.30 per share of class A common stock (determined in the case of class B and C common stock and UK&I andEurope preferred stock on an as-converted basis), which will be paid onJune 2, 2020 , to all holders of record as ofMay 14, 2020 . See Note 10-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. All three series of preferred stock and class B and C common stock will share ratably on an as-converted basis in such future dividends. Senior notes. InDecember 2015 , we issued fixed-rate senior notes in an aggregate principal amount of$16.0 billion , with maturities ranging between 2 and 30 years. A principal payment of$3.0 billion is due onDecember 14, 2020 , for which we have sufficient liquidity. See Note 8-Debt to our unaudited consolidated financial statements. Acquisition. OnJanuary 13, 2020 , we entered into a definitive agreement to acquirePlaid, Inc. for$5.3 billion . We will pay approximately$4.9 billion of cash and$0.4 billion of retention equity and deferred equity consideration. This acquisition is subject to customary closing conditions, including ongoing regulatory reviews and approvals, which are expected to be completed by the end of 2020. We intend to fund the acquisition with cash, cash equivalents and investments, as well as through the issuance of new indebtedness. ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
There have been no significant changes to our market risks since
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