Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 24, 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-33977 | |
Entity Registrant Name | VISA INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0267673 | |
Entity Address, Address Line One | P.O. Box 8999 | |
Entity Address, Postal Zip Code | 94128-8999 | |
Entity Address, City or Town | San Francisco, | |
Entity Address, State or Province | CA | |
City Area Code | 650 | |
Local Phone Number | 432-3200 | |
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | V | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001403161 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A common stock | ||
Entity Common Stock, Shares Outstanding | 1,706,024,403 | |
Class B common stock | ||
Entity Common Stock, Shares Outstanding | 245,513,385 | |
Class C common stock | ||
Entity Common Stock, Shares Outstanding | 10,969,172 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Assets | ||
Cash and cash equivalents | $ 8,768 | $ 7,838 |
Restricted cash equivalents—U.S. litigation escrow (Note 3 and Note 4) | 1,634 | 1,205 |
Investment securities (Note 5) | 3,902 | 4,236 |
Settlement receivable | 3,273 | 3,048 |
Accounts receivable | 1,661 | 1,542 |
Customer collateral (Note 3 and Note 8) | 1,698 | 1,648 |
Current portion of client incentives | 803 | 741 |
Prepaid expenses and other current assets | 580 | 712 |
Total current assets | 22,319 | 20,970 |
Investment securities (Note 5) | 1,719 | 2,157 |
Client incentives | 2,481 | 2,084 |
Property, equipment and technology, net | 2,739 | 2,695 |
Goodwill | 15,767 | 15,656 |
Intangible assets, net | 27,137 | 26,780 |
Other assets | 2,619 | 2,232 |
Total assets | 74,781 | 72,574 |
Liabilities | ||
Accounts payable | 133 | 156 |
Settlement payable | 4,277 | 3,990 |
Customer collateral (Note 3 and Note 8) | 1,698 | 1,648 |
Accrued compensation and benefits | 527 | 796 |
Client incentives | 4,270 | 3,997 |
Accrued liabilities | 2,045 | 1,625 |
Current maturities of long-term debt (Note 7) | 3,000 | 0 |
Accrued litigation (Note 13) | 1,629 | 1,203 |
Total current liabilities | 17,579 | 13,415 |
Long-term debt (Note 7) | 13,688 | 16,729 |
Deferred tax liabilities | 4,810 | 4,807 |
Other liabilities | 3,434 | 2,939 |
Total liabilities | 39,511 | 37,890 |
Equity | ||
Right to recover for covered losses (Note 4) | (175) | (171) |
Additional paid-in capital | 16,424 | 16,541 |
Accumulated income | 13,899 | 13,502 |
Accumulated other comprehensive income (loss), net: | ||
Investment securities | 4 | 6 |
Defined benefit pension and other postretirement plans | (203) | (192) |
Derivative instruments | 49 | 199 |
Foreign currency translation adjustments | (190) | (663) |
Total accumulated other comprehensive income (loss), net | (340) | (650) |
Total equity | 35,270 | 34,684 |
Total liabilities and equity | 74,781 | 72,574 |
Series A Preferred Stock | ||
Equity | ||
Preferred stock | 0 | 0 |
UK&I preferred stock | ||
Equity | ||
Preferred stock | 2,285 | 2,285 |
Europe preferred stock | ||
Equity | ||
Preferred stock | 3,177 | 3,177 |
Class A common stock | ||
Equity | ||
Common stock | 0 | 0 |
Class B common stock | ||
Equity | ||
Common stock | 0 | 0 |
Class C common stock | ||
Equity | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Sep. 30, 2019 |
Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 5,000,000 | 5,000,000 |
Series A Preferred Stock | ||
Preferred stock, shares issued (in shares) | 0 | 0 |
UK&I preferred stock | ||
Preferred stock, shares issued (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding (in shares) | 2,000,000 | 2,000,000 |
Europe preferred stock | ||
Preferred stock, shares issued (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares outstanding (in shares) | 3,000,000 | 3,000,000 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 2,001,622,000,000 | 2,001,622,000,000 |
Common stock, shares issued (in shares) | 1,709,000,000 | 1,718,000,000 |
Common stock, shares outstanding (in shares) | 1,709,000,000 | 1,718,000,000 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 622,000,000 | 622,000,000 |
Common stock, shares issued (in shares) | 245,000,000 | 245,000,000 |
Common stock, shares outstanding (in shares) | 245,000,000 | 245,000,000 |
Class C common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,097,000,000 | 1,097,000,000 |
Common stock, shares issued (in shares) | 11,000,000 | 11,000,000 |
Common stock, shares outstanding (in shares) | 11,000,000 | 11,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | ||
Net revenues | $ 6,054 | $ 5,506 |
Operating Expenses | ||
Personnel | 982 | 807 |
Marketing | 274 | 276 |
Network and processing | 181 | 173 |
Professional fees | 106 | 91 |
Depreciation and amortization | 182 | 159 |
General and administrative | 313 | 276 |
Litigation provision (Note 13) | 0 | 7 |
Total operating expenses | 2,038 | 1,789 |
Operating income | 4,016 | 3,717 |
Non-operating Income (Expense) | ||
Interest expense, net | (111) | (145) |
Investment income and other | 69 | 58 |
Total non-operating income (expense) | (42) | (87) |
Income before income taxes | 3,974 | 3,630 |
Income tax provision (Note 12) | 702 | 653 |
Net income | $ 3,272 | $ 2,977 |
Class A common stock | ||
Earnings Per Share | ||
Basic earnings per share (in dollars per share) | $ 1.46 | $ 1.30 |
Basic weighted-average shares outstanding (in shares) | 1,713 | 1,760 |
Diluted earnings per share (in dollars per share) | $ 1.46 | $ 1.30 |
Diluted weighted-average shares outstanding (in shares) | 2,240 | 2,291 |
Class B common stock | ||
Earnings Per Share | ||
Basic earnings per share (in dollars per share) | $ 2.37 | $ 2.12 |
Basic weighted-average shares outstanding (in shares) | 245 | 245 |
Diluted earnings per share (in dollars per share) | $ 2.37 | $ 2.12 |
Diluted weighted-average shares outstanding (in shares) | 245 | 245 |
Class C common stock | ||
Earnings Per Share | ||
Basic earnings per share (in dollars per share) | $ 5.85 | $ 5.20 |
Basic weighted-average shares outstanding (in shares) | 11 | 12 |
Diluted earnings per share (in dollars per share) | $ 5.84 | $ 5.20 |
Diluted weighted-average shares outstanding (in shares) | 11 | 12 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,272 | $ 2,977 |
Investment securities: | ||
Net unrealized gain (loss) | 0 | 8 |
Income tax effect | 0 | (2) |
Defined benefit pension and other postretirement plans: | ||
Net unrealized actuarial gain (loss) and prior service credit (cost) | (1) | (7) |
Income tax effect | 0 | 1 |
Reclassification adjustments | 4 | 0 |
Income tax effect | (1) | 0 |
Derivative instruments: | ||
Net unrealized gain (loss) | (188) | 38 |
Income tax effect | 39 | (10) |
Reclassification adjustments | (2) | (25) |
Income tax effect | 1 | 5 |
Foreign currency translation adjustments | 483 | (287) |
Other comprehensive income (loss), net of tax | 335 | (279) |
Comprehensive income | $ 3,607 | $ 2,698 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions | Total | Class A common stock | Preferred Stock | Preferred StockUK&I preferred stock | Preferred StockEurope preferred stock | Common StockClass A common stock | Common StockClass B common stock | Common StockClass C common stock | Right to Recover for Covered Losses | Additional Paid-In Capital | Accumulated Income | Accumulated Other Comprehensive Income (Loss), Net | ||
Beginning balance (in shares) at Sep. 30, 2018 | 2 | 3 | 1,768 | 245 | 12 | |||||||||
Beginning balance at Sep. 30, 2018 | $ 34,006 | $ 5,470 | $ (7) | $ 16,678 | $ 11,318 | $ 547 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 2,977 | 2,977 | ||||||||||||
Other comprehensive income (loss), net of tax | (279) | (279) | ||||||||||||
Comprehensive income | 2,698 | |||||||||||||
Adoption of new accounting standards (Note 1) | 400 | 393 | 7 | |||||||||||
VE territory covered losses incurred (Note 4) | (91) | (91) | ||||||||||||
Recovery through conversion rate adjustment (Note 4 and Note 9) | (6) | 6 | ||||||||||||
Conversion of class C common stock upon sales into public market (in shares) | [1] | 0 | 0 | |||||||||||
Vesting of restricted stock and performance-based shares (in shares) | 3 | |||||||||||||
Share-based compensation, net of forfeitures (Note 11) | 100 | 100 | ||||||||||||
Restricted stock and performance-based shares settled in cash for taxes (in shares) | (1) | |||||||||||||
Restricted stock and performance-based shares settled in cash for taxes | (101) | (101) | ||||||||||||
Cash proceeds from issuance of common stock under employee equity plans (in shares) | 1 | |||||||||||||
Cash proceeds from issuance of common stock under employee equity plans | 48 | 48 | ||||||||||||
Cash dividends declared and paid, at a quarterly amount per Class A share | (572) | (572) | ||||||||||||
Repurchase of class A common stock (Note 10) (in shares) | (17) | (17) | ||||||||||||
Repurchase of class A common stock (Note 9) | (2,393) | $ (2,393) | (185) | (2,208) | ||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 2 | 3 | 1,754 | 245 | 12 | |||||||||
Ending balance at Dec. 31, 2018 | 34,095 | 5,464 | (92) | 16,540 | 11,908 | 275 | ||||||||
Beginning balance (in shares) at Sep. 30, 2019 | 2 | 3 | 1,718 | 245 | 11 | |||||||||
Beginning balance at Sep. 30, 2019 | 34,684 | 5,462 | (171) | 16,541 | 13,502 | (650) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 3,272 | 3,272 | ||||||||||||
Other comprehensive income (loss), net of tax | 335 | 335 | ||||||||||||
Comprehensive income | 3,607 | |||||||||||||
Adoption of new accounting standards (Note 1) | 0 | 25 | (25) | |||||||||||
VE territory covered losses incurred (Note 4) | (4) | (4) | ||||||||||||
Conversion of class C common stock upon sales into public market (in shares) | 1 | 0 | [2] | |||||||||||
Vesting of restricted stock and performance-based shares (in shares) | 3 | |||||||||||||
Share-based compensation, net of forfeitures (Note 11) | 116 | 116 | ||||||||||||
Restricted stock and performance-based shares settled in cash for taxes (in shares) | (1) | |||||||||||||
Restricted stock and performance-based shares settled in cash for taxes | (147) | (147) | ||||||||||||
Cash proceeds from issuance of common stock under employee equity plans (in shares) | 1 | |||||||||||||
Cash proceeds from issuance of common stock under employee equity plans | 55 | 55 | ||||||||||||
Cash dividends declared and paid, at a quarterly amount per Class A share | (671) | (671) | ||||||||||||
Repurchase of class A common stock (Note 10) (in shares) | (13) | (13) | ||||||||||||
Repurchase of class A common stock (Note 9) | (2,370) | $ (2,370) | (141) | (2,229) | ||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 2 | 3 | 1,709 | 245 | 11 | |||||||||
Ending balance at Dec. 31, 2019 | $ 35,270 | $ 5,462 | $ (175) | $ 16,424 | $ 13,899 | $ (340) | ||||||||
[1] | Increase or decrease is less than one million shares. | |||||||||||||
[2] | Increase or decrease is less than one million shares. |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared and paid, quarterly, per Class A share (in dollars per share) | $ 0.30 | $ 0.25 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities | ||
Net income | $ 3,272 | $ 2,977 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Client incentives (Note 2) | 1,748 | 1,456 |
Share-based compensation (Note 11) | 116 | 100 |
Depreciation and amortization of property, equipment, technology and intangible assets | 182 | 159 |
Deferred income taxes | (47) | 139 |
VE territory covered losses incurred (Note 4) | (4) | (91) |
Other | (50) | 9 |
Change in operating assets and liabilities: | ||
Settlement receivable | (183) | (1,551) |
Accounts receivable | (107) | (200) |
Client incentives | (1,943) | (1,361) |
Other assets | 123 | (37) |
Accounts payable | (12) | (46) |
Settlement payable | 218 | 1,739 |
Accrued and other liabilities | 136 | (54) |
Accrued litigation (Note 13) | 426 | 55 |
Net cash provided by (used in) operating activities | 3,875 | 3,294 |
Investing Activities | ||
Purchases of property, equipment and technology | (191) | (157) |
Investment securities: | ||
Purchases | (400) | (1,124) |
Proceeds from maturities and sales | 1,202 | 1,233 |
Acquisitions, net of cash acquired | (77) | 0 |
Purchases of / contributions to other investments | (9) | (22) |
Proceeds / distributions from other investments | 1 | 0 |
Other investing activities | 36 | 0 |
Net cash provided by (used in) investing activities | 562 | (70) |
Financing Activities | ||
Repurchase of class A common stock (Note 9) | (2,370) | (2,393) |
Dividends paid (Note 9) | (671) | (572) |
Cash proceeds from issuance of common stock under employee equity plans | 55 | 48 |
Restricted stock and performance-based shares settled in cash for taxes | (147) | (101) |
Net cash provided by (used in) financing activities | (3,133) | (3,018) |
Effect of exchange rate changes on cash and cash equivalents | 127 | (68) |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 1,431 | 138 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period (Note 3) | 10,832 | 10,977 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period (Note 3) | 12,263 | 11,115 |
Supplemental Disclosure | ||
Income taxes paid, net of refunds | 345 | 168 |
Interest payments on debt | 234 | 234 |
Accruals related to purchases of property, equipment and technology | $ 66 | $ 34 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1—Summary of Significant Accounting Policies Organization. Visa Inc. (“Visa” or the “Company”) is a global payments technology company that enables fast, secure and reliable electronic payments across more than 200 countries and territories. Visa and its wholly-owned consolidated subsidiaries, including Visa U.S.A. Inc. (“Visa U.S.A.”), Visa International Service Association (“Visa International”), Visa Worldwide Pte. Limited, Visa Europe Limited (“Visa Europe”), Visa Canada Corporation (“Visa Canada”), Visa Technology & Operations LLC and CyberSource Corporation, operate one of the world’s largest electronic payments networks — VisaNet — which facilitates authorization, clearing and settlement of payment transactions and enables the Company to provide its financial institution and merchant clients a wide range of products, platforms and value-added services. Visa is not a financial institution and does not issue cards, extend credit or set rates and fees for account holders on 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. All significant intercompany accounts and transactions are eliminated in consolidation. The accompanying unaudited consolidated financial statements are presented in accordance with the 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 the Visa Annual Report on Form 10-K for the year ended September 30, 2019 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. Recently Issued and Adopted Accounting Pronouncements. In February 2016, the FASB issued ASU 2016-02, which requires the recognition of lease assets and lease liabilities arising from operating leases on the balance sheet. Subsequently, the FASB also issued a series of amendments to this new leases standard that address the transition methods available and clarify the guidance for lessor costs and other aspects of the new leases standard. The Company adopted the standard effective October 1, 2019 using the modified retrospective transition method with comparative periods continuing to be reported using the prior leases standard. The Company elected to apply the package of practical expedients permitted under the transition guidance, allowing the Company to carry forward the historical assessment of whether a contract was or contains a lease, lease classification and capitalization of initial direct costs. The adoption did not have a material impact on the consolidated financial statements. In accordance with ASU 2016-02, the Company determines if an arrangement is a lease at its inception. Right-of-use (“ROU”) assets, and corresponding lease liabilities, are recognized at the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As a majority of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company does not record a ROU asset and corresponding liability for leases with terms of 12 months or less. The Company does not include renewals in the determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company does not combine lease payments with non-lease components for any of its leases. Operating leases are recorded as ROU assets, which are included in other assets. The current portion of lease liabilities are included in accrued liabilities and the long-term portion is included in other liabilities on the consolidated balance sheet. The Company’s lease cost consists of amounts recognized under lease agreements in the results of operations adjusted for impairment and sublease income. In February 2018, the FASB issued ASU 2018-02, which allows a reclassification from accumulated other comprehensive income to retained earnings for adjustments to tax effects that were originally recorded in other comprehensive income due to changes in the U.S. federal corporate income tax rate resulting from the enactment of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Company adopted the ASU effective October 1, 2019. The adoption did not have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance for income taxes and making other minor improvements. The amendments in the ASU are effective for the Company on October 1, 2021. The Company does not plan to early adopt the ASU at this time. The adoption is not expected to have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the fair value measurement alternative. The amendments in the ASU are effective for the Company on October 1, 2021. The adoption is not expected to have a material impact on the consolidated financial statements. |
Revenues
Revenues | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Note 2—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 for the three months ended December 31, 2019 and 2018 : Three Months Ended 2019 2018 (in millions) Service revenues $ 2,555 $ 2,342 Data processing revenues 2,864 2,470 International transaction revenues 2,018 1,851 Other revenues 365 299 Client incentives (1,748 ) (1,456 ) Net revenues $ 6,054 $ 5,506 Three Months Ended 2019 2018 (in millions) U.S. $ 2,717 $ 2,508 International 3,337 2,998 Net revenues $ 6,054 $ 5,506 |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 3 Months Ended |
Dec. 31, 2019 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Note 3—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents The Company’s cash and cash equivalents include cash and certain highly liquid investments with original maturities of 90 days or less from the date of purchase. Cash equivalents are primarily recorded at cost, which approximates fair value due to their generally short maturities. The Company defines restricted cash and restricted cash equivalents as cash and cash equivalents that cannot be withdrawn or used for general operating activities. The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows: December 31, 2019 September 30, 2019 (in millions) Cash and cash equivalents $ 8,768 $ 7,838 Restricted cash and restricted cash equivalents: U.S. litigation escrow 1,634 1,205 Customer collateral 1,698 1,648 Prepaid expenses and other current assets 163 141 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 12,263 $ 10,832 |
U.S. and Europe Retrospective R
U.S. and Europe Retrospective Responsibility Plan | 3 Months Ended |
Dec. 31, 2019 | |
Retrospective Responsibility Plan [Abstract] | |
U.S. and Europe Retrospective Responsibility Plan | Note 4—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. covered litigation” are paid. The escrow funds are held in money market investments along with interest income earned, less applicable taxes, and are classified as restricted cash equivalents on the consolidated balance sheets. On December 13, 2019, the district court entered the final judgment order approving the Amended Settlement Agreement with the Damages Class plaintiffs in the Interchange Multidistrict Litigation proceedings. A takedown payment of approximately $467 million was received on December 27, 2019, and deposited into the Company’s litigation escrow account. The deposit into the litigation escrow account and reestablishment of a prior accrual to address opt-out claims was recorded during the three months ended December 31, 2019 . The accrual related to the U.S. covered litigation could be either higher or lower than the litigation escrow account balance. See Note 13—Legal Matters . The following table sets forth the changes in the restricted cash equivalents—U.S. litigation escrow account: Three Months Ended 2019 2018 (in millions) Balance at beginning of period $ 1,205 $ 1,491 Return of takedown payment to the litigation escrow account 467 — Payments to opt-out merchants (1) and interest earned on escrow funds (38 ) 5 Balance at end of period $ 1,634 $ 1,496 (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 (the “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 (the “VE territory covered losses”) through a periodic adjustment to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. VE territory covered losses are recorded in “right to recover for covered losses” within 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 to recover for covered losses” as contra-equity is then recorded against the book value of the preferred stock within stockholders’ equity. See Note 13—Legal Matters . There were no adjustments to the conversion rates during the three months ended December 31, 2019 . The following table sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders’ equity within the Company’s consolidated balance sheets as of December 31, 2019 and September 30, 2019 : December 31, 2019 September 30, 2019 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) UK&I preferred stock $ 6,029 $ 2,285 $ 5,519 $ 2,285 Europe preferred stock 8,236 3,177 7,539 3,177 Total 14,265 5,462 13,058 5,462 Less: right to recover for covered losses (175 ) (175 ) (171 ) (171 ) Total recovery for covered losses available $ 14,090 $ 5,287 $ 12,887 $ 5,291 (1) Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers. (2) The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of December 31, 2019 ; (b) 12.936 and 13.884 , the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of December 31, 2019 , respectively; and (c) $187.90 , Visa’s class A common stock closing stock price as of December 31, 2019 . (3) The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2019 ; (b) 12.936 and 13.884 , the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2019 , respectively; and (c) $172.01 , Visa’s class A common stock closing stock price as of September 30, 2019 . |
Fair Value Measurements and Inv
Fair Value Measurements and Investments | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Investments | Note 5—Fair Value Measurements and Investments Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair Value Measurements Using Inputs Considered as Level 1 Level 2 December 31, September 30, December 31, September 30, (in millions) Assets Cash equivalents and restricted cash equivalents: Money market funds $ 7,539 $ 6,494 U.S. government-sponsored debt securities $ 350 $ 150 Investment securities: Marketable equity securities 154 126 U.S. government-sponsored debt securities 4,565 5,592 U.S. Treasury securities 902 675 Other current and non-current assets: Derivative instruments 274 437 Total $ 8,595 $ 7,295 $ 5,189 $ 6,179 Liabilities Accrued compensation and benefits: Deferred compensation liability $ 141 $ 113 Accrued and other liabilities: Derivative instruments $ 99 $ 52 Total $ 141 $ 113 $ 99 $ 52 There were no transfers between Level 1 and Level 2 assets during the three months ended December 31, 2019 . Level 1 assets. Money market funds, marketable equity securities and U.S. Treasury securities are classified as Level 1 within the fair value hierarchy, as fair value is based on quoted prices in active markets. 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. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. Derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. There were no substantive changes to the valuation techniques and related inputs used to measure fair value during the three months ended December 31, 2019 . U.S. government-sponsored debt securities and U.S. Treasury securities. The Company considers U.S. government-sponsored debt securities and U.S. Treasury securities to be available-for-sale and held $5.5 billion and $6.3 billion of these investment securities as of December 31, 2019 and September 30, 2019 , respectively. All of the Company’s long-term available-for-sale investment securities are due within one to five years . Assets Measured at Fair Value on a Non-recurring Basis Non-marketable equity securities. The Company’s non-marketable equity securities are investments in privately held companies without readily determinable market values. These investments are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity and the fact that inputs used to measure fair value are unobservable and require management’s judgment. During the three months ended December 31, 2019 , $9 million of upward adjustments and no downward adjustments were included in the carrying value of non-marketable equity securities. During the three months ended December 31, 2019 and 2018 , there were no significant impairments. The following table summarizes the total carrying value of the Company’s non-marketable equity securities held as of December 31, 2019 including cumulative unrealized gains and losses: December 31, 2019 (in millions) Initial cost basis $ 595 Upward adjustments 119 Downward adjustments (including impairment) (4 ) Carrying amount, end of period $ 710 Non-financial assets and liabilities. Long-lived assets such as goodwill, indefinite-lived intangible assets, finite-lived intangible assets and property, equipment and technology are considered non-financial assets. The Company does not have any non-financial liabilities measured at fair value on a non-recurring basis. Finite-lived intangible assets primarily consist of customer relationships and trade names, all of which were obtained through acquisitions. If the Company were required to perform a quantitative assessment for impairment testing of goodwill and indefinite-lived intangible assets, the fair values would generally be estimated using an income approach. As the assumptions employed to measure these assets on a non-recurring basis are based on management’s judgment using internal and external data, these fair value determinations are classified as Level 3 in the fair value hierarchy. The Company completed its annual impairment review of its indefinite-lived intangible assets and goodwill as of February 1, 2019, and concluded that there was no impairment. No recent events or changes in circumstances indicate that impairment existed at December 31, 2019 . Gains and Losses on Marketable and Non-marketable Equity Securities Gains and losses on the Company’s equity securities are summarized below. Three Months Ended 2019 2018 (in millions) Net gain (loss) on equity securities sold during the period $ 4 $ — Unrealized gain (loss) on equity securities held as of the end of the period 14 (20 ) Total gain (loss) recognized in non-operating income (expense), net $ 18 $ (20 ) Other Fair Value Disclosures Long-term 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. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of long-term debt was $16.7 billion and $18.3 billion , respectively, as of December 31, 2019 . The carrying value and estimated fair value of long-term debt was $16.7 billion and $18.4 billion , respectively, as of September 30, 2019 . Other financial instruments not measured at fair value. The following financial instruments are not measured at fair value on the Company’s unaudited consolidated balance sheet at December 31, 2019 , but disclosure of their fair values is required: settlement receivable and payable, accounts receivable and customer collateral. The estimated fair value of such instruments at December 31, 2019 approximates their carrying 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. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 6—Leases The Company entered into various operating lease agreements primarily for real estate. The Company's leases have original lease periods expiring between fiscal 2020 and 2030 . Many leases include one or more options to renew. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Payments under the Company’s lease arrangements are generally fixed. At December 31, 2019 , the Company had no finance leases. During the three months ended December 31, 2019 , total operating lease cost was $26 million . At December 31, 2019 , the weighted average remaining lease term for operating leases was approximately 7 years and the weighted average discount rate for operating leases was 2.31% . At December 31, 2019 , the present value of future minimum lease payments was as follows: December 31, 2019 (in millions) Remainder of 2020 $ 82 2021 108 2022 93 2023 86 2024 73 Thereafter 186 Total undiscounted lease payments 628 Less: imputed interest (54 ) Present value of lease liabilities $ 574 At December 31, 2019 , the Company had additional operating leases that had not yet commenced with lease obligations of $507 million . These operating leases will commence between fiscal 2020 and 2023 with non-cancellable lease terms of 5 to 15 years. |
Debt
Debt | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 7—Debt The Company had outstanding debt as follows: December 31, 2019 September 30, 2019 Effective Interest Rate (1) (in millions, except percentages) 2.20% Senior Notes due December 2020 $ 3,000 $ 3,000 2.30 % 2.15% Senior Notes due September 2022 1,000 1,000 2.30 % 2.80% Senior Notes due December 2022 2,250 2,250 2.89 % 3.15% Senior Notes due December 2025 4,000 4,000 3.26 % 2.75% Senior Notes due September 2027 750 750 2.91 % 4.15% Senior Notes due December 2035 1,500 1,500 4.23 % 4.30% Senior Notes due December 2045 3,500 3,500 4.37 % 3.65% Senior Notes due September 2047 750 750 3.73 % Total senior notes 16,750 16,750 Unamortized discounts and debt issuance costs (105 ) (108 ) Hedge accounting fair value adjustments (2) 43 87 Less: current maturities of long-term debt (3,000 ) — Total long-term debt $ 13,688 $ 16,729 (1) Effective interest rates disclosed do not reflect hedge accounting adjustments. (2) |
Settlement Guarantee Management
Settlement Guarantee Management | 3 Months Ended |
Dec. 31, 2019 | |
Settlement Guarantee Management [Abstract] | |
Settlement Guarantee Management | 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. The Company’s maximum daily settlement exposure was $97.3 billion and the average daily settlement exposure was $59.2 billion during the three months ended December 31, 2019 . 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. At December 31, 2019 and September 30, 2019 , the Company held collateral as follows: December 31, September 30, (in millions) Restricted cash and restricted cash equivalents $ 1,698 $ 1,648 Pledged securities at market value 241 259 Letters of credit 1,325 1,293 Guarantees 506 477 Total $ 3,770 $ 3,677 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 9—Stockholders’ Equity As-converted class A common stock. The following table presents the number of shares of each series and class of stock and the number of shares of class A common stock on an as-converted basis: December 31, 2019 September 30, 2019 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 rates) UK&I preferred stock 2 12.9360 32 2 12.9360 32 Europe preferred stock 3 13.8840 44 3 13.8840 44 Class A common stock (2) 1,709 — 1,709 1,718 — 1,718 Class B common stock 245 1.6228 (3) 398 245 1.6228 (3) 398 Class C common stock 11 4.0000 44 11 4.0000 45 Total 2,227 2,237 (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) Class A common stock shares outstanding reflect repurchases that settled on or before December 31, 2019 and September 30, 2019 . (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. Under the terms of the Europe retrospective responsibility plan, the Company is entitled to recover VE territory covered losses through periodic adjustments to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. The recovery has the same economic effect on earnings per share as repurchasing the Company’s class A common stock, because it reduces the UK&I and Europe preferred stock conversion rates and consequently, reduces the as-converted class A common stock share count. There were no conversion rate adjustments in the three months ended December 31, 2019 . See Note 4—U.S. and Europe Retrospective Responsibility Plans. Common stock repurchases. The following table presents share repurchases in the open market for the following periods: Three Months Ended 2019 2018 (in millions, except per share data) Shares repurchased in the open market (1) 13 17 Average repurchase price per share (2) $ 179.27 $ 138.11 Total cost (2) $ 2,370 $ 2,393 (1) Shares repurchased in the open market reflect repurchases that settled during the three months ended December 31, 2019 and 2018 . 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 price per share and total cost is calculated based on unrounded numbers. In January 2019, the Company’s board of directors authorized an $8.5 billion share purchase program. As of December 31, 2019 , the Company’s January 2019 share repurchase program had remaining authorized funds of $1.7 billion for share repurchase. In January 2020 , the Company’s board of directors authorized an additional $9.5 billion share repurchase program. These authorizations have no expiration date. Dividends. O n January 28, 2020 , the Company’s board of directors declared a quarterly cash dividend of $0.30 per share of class A common stock (determined in the case of class B and C common stock and UK&I and Europe preferred stock on an as-converted basis). The cash dividend will be paid on March 3, 2020 , to all holders of record as of February 14, 2020 . The Company declared and paid $671 million and $572 million during the three months ended December 31, 2019 and 2018 , respectively, in dividends to holders of the Company’s common and preferred stocks. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 10—Earnings Per Share Basic earnings per share is computed by dividing net income available to each class of shares by the weighted-average number of shares of common stock outstanding and participating securities during the period. Net income is allocated to each class of common stock and participating securities based on its proportional ownership on an as-converted basis. The weighted-average number of shares outstanding of each class of common stock reflects changes in ownership over the periods presented. See Note 9—Stockholders’ Equity . Diluted earnings per share is computed by dividing net income available by the weighted-average number of shares of common stock outstanding, participating securities and, if dilutive, potential class A common stock equivalent shares outstanding during the period. Dilutive class A common stock equivalents may consist of: (1) shares of class A common stock issuable upon the conversion of UK&I and Europe preferred stock and class B and C common stock based on the conversion rates in effect through the period, and (2) incremental shares of class A common stock calculated by applying the treasury stock method to the assumed exercise of employee stock options, the assumed purchase of stock under the Company’s Employee Stock Purchase Plan and the assumed vesting of unearned performance shares. The following table presents earnings per share for the three months ended December 31, 2019 : Basic Earnings Per Share Diluted Earnings Per Share (in millions, except per share data) 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) Class A common stock $ 2,506 1,713 $ 1.46 $ 3,272 2,240 (3) $ 1.46 Class B common stock 583 245 $ 2.37 582 245 $ 2.37 Class C common stock 65 11 $ 5.85 65 11 $ 5.84 Participating securities (4) 118 Not presented Not presented 117 Not presented Not presented Net income $ 3,272 The following table presents earnings per share for the three months ended December 31, 2018 : Basic Earnings Per Share Diluted Earnings Per Share (in millions, except per share data) 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) Class A common stock $ 2,290 1,760 $ 1.30 $ 2,977 2,291 (3) $ 1.30 Class B common stock 521 245 $ 2.12 520 245 $ 2.12 Class C common stock 61 12 $ 5.20 61 12 $ 5.20 Participating securities (4) 105 Not presented Not presented 105 Not presented Not presented Net income $ 2,977 (1) Net income is allocated based on proportional ownership on an as-converted basis. The weighted-average number of shares of as-converted class B common stock used in the income allocation was 398 million and 400 million for the three months ended December 31, 2019 and 2018 , respectively. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 44 million and 47 million for the three months ended December 31, 2019 and 2018 , respectively. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three months ended December 31, 2019 and 2018 . The weighted-average number of shares of preferred stock included within participating securities was 44 million of as-converted Europe preferred stock for the three months ended December 31, 2019 and 2018 . (2) Figures in the table may not recalculate exactly due to rounding. Earnings per share is 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 computation includes approximately 3 million common stock equivalents for the three months ended December 31, 2019 and 2018 , because their effect would have been dilutive. The computation excludes 1 million of common stock equivalents for the three months ended December 31, 2019 and 2018 , because their effect would have been anti-dilutive. (4) Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company’s UK&I and Europe preferred stock, restricted stock units and earned performance-based shares. Participating securities’ income is allocated based on the weighted-average number of shares of as-converted stock. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | Note 11—Share-based Compensation The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan, or the EIP, during the three months ended December 31, 2019 : Granted Weighted-Average Grant Date Fair Value Weighted-Average Exercise Price Non-qualified stock options 1,247,982 $ 29.37 $ 182.50 Restricted stock units 2,189,944 $ 182.62 Performance-based shares (1) 470,128 $ 211.08 (1) Represents the maximum number of performance-based shares which could be earned. The Company recorded share-based compensation cost related to the EIP of $111 million and $95 million for the three months ended December 31, 2019 and 2018, respectively, net of estimated forfeitures, which are adjusted as appropriate. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12—Income Taxes The effective income tax rates were 18% for both the three months ended December 31, 2019 and 2018. During the three months ended December 31, 2019 , the Company’s gross unrecognized tax benefits increased by $63 million , of which $13 million would favorably impact the effective tax rate, if recognized. The change in unrecognized tax benefits is primarily related to various tax positions across several jurisdictions. During the three months ended December 31, 2019 and 2018, there were no significant changes in interest and penalties related to uncertain tax positions. The Company’s tax filings are subject to examination by the U.S. federal, state and foreign taxing authorities. The timing and outcome of the final resolutions of the various ongoing income tax examinations are highly uncertain. It is not reasonably possible to estimate the increase or decrease in unrecognized tax benefits within the next twelve months. |
Legal Matters
Legal Matters | 3 Months Ended |
Dec. 31, 2019 | |
Legal Matters [Abstract] | |
Legal Matters | 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. Accordingly, except as disclosed, the Company has not established reserves or ranges of possible loss related to these proceedings, as at this time in the proceedings, the matters do not relate to a probable loss and/or the amount or range of losses are not reasonably estimable. 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: Three Months Ended 2019 2018 (in millions) Balance at beginning of period $ 1,203 $ 1,434 Provision for uncovered legal matters — 7 Provision for covered legal matters 1 90 Reestablishment of prior accrual related to interchange multidistrict litigation 467 — Payments for legal matters (42 ) (42 ) Balance at end of period $ 1,629 $ 1,489 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. See further discussion below under U.S. Covered Litigation and Note 4—U.S. and Europe Retrospective Responsibility Plans . 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 litigation committee. The total accrual related to the U.S. covered litigation could be either higher or lower than the escrow account balance. The following table summarizes the accrual activity related to U.S. covered litigation: Three Months Ended 2019 2018 (in millions) Balance at beginning of period $ 1,198 $ 1,428 Reestablishment of prior accrual related to interchange multidistrict litigation 467 — Payments for U.S. covered litigation (41 ) — Balance at end of period $ 1,624 $ 1,428 In fiscal 2019, the Company paid $600 million from its litigation escrow account into a settlement fund established pursuant to the Amended Settlement Agreement with the Damages Class plaintiffs in the Interchange Multidistrict Litigation. Under the Amended Settlement Agreement, if class members opt out of the Damages Class, the defendants are entitled to receive takedown payments of up to $700 million (up to $467 million for Visa), based on the percentage of payment card sales volume attributable to merchants who have chosen to opt out. On December 13, 2019, the district court entered a final judgment order approving the Amended Settlement Agreement with the Damages Class plaintiffs. A takedown payment of approximately $467 million was received on December 27, 2019, and deposited into the Company’s litigation escrow account. The deposit into the litigation escrow account and reestablishment of a prior accrual to address opt-out claims was recorded during the three months ended December 31, 2019 . See further discussion below under U.S. Covered Litigation . 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 UK&I preferred stock and Europe 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 4—U.S. and Europe Retrospective Responsibility Plans . The following table summarizes the accrual activity related to VE territory covered litigation: Three Months Ended 2019 2018 (in millions) Balance at beginning of period $ 5 $ — Provision for VE territory covered litigation 1 90 Payments for VE territory covered litigation (1 ) (35 ) Balance at end of period $ 5 $ 55 U.S. Covered Litigation Interchange Multidistrict Litigation (MDL) – Putative Class Actions On November 20, 2019, the district court denied the bank defendants’ motion to dismiss the claims brought against them by the putative Injunctive Relief Class. On December 13, 2019, the district court granted final approval of the 2018 Amended Settlement Agreement relating to claims by the Damages Class, which was subsequently appealed. VE Territory Covered Litigation Europe Merchant Litigation Since July 2013, in excess of 500 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) have commenced proceedings against Visa Europe, Visa Inc. and other Visa subsidiaries in the UK, Germany and Belgium 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 Europe, Visa Inc. and other Visa subsidiaries have settled the claims asserted by over 100 Merchants, leaving more than 400 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 Canadian Merchant Litigation Between August 2019 and January 2020, the Courts of Appeal in British Columbia, Quebec, Ontario and Saskatchewan rejected the appeals filed by Wal-Mart Canada and Home Depot of Canada Inc. In January 2020, Wal-Mart Canada and Home Depot of Canada Inc. filed applications to appeal the decisions of the British Columbia, Quebec and Ontario courts to the Supreme Court of Canada. An appeal to the Alberta Court of Appeal remains pending. Nuts for Candy On December 31, 2019, plaintiff filed a motion to dismiss and for attorneys’ fees and costs based on the settlement reached between the parties and the grant of final approval of the 2018 Amended Settlement Agreement as discussed above in Interchange Multidistrict Litigation (MDL) - Putative Class Actions . Euronet Litigation On December 13, 2019, Euronet 360 Finance Limited, Euronet Polska Spolka z.o.o. and Euronet Services spol. s.r.o. (“Euronet”) served a claim in the UK alleging that certain rules affecting ATM access fees in Poland, the Czech Republic and Greece by Visa Inc. and Mastercard Incorporated, and certain of their subsidiaries, breach various competition laws. Euronet seeks damages, costs, and injunctive relief to prevent the defendants from enforcing the aforementioned rules. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14—Subsequent Events On January 13, 2020, the Company entered into a definitive agreement to acquire Plaid, Inc. for $5.3 billion . The Company 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 certain regulatory approvals, and is expected to close in the next three to six months. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation and basis of presentation | 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. All significant intercompany accounts and transactions are eliminated in consolidation. The accompanying unaudited consolidated financial statements are presented in accordance with the 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 the Visa Annual Report on Form 10-K for the year ended September 30, 2019 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. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements. In February 2016, the FASB issued ASU 2016-02, which requires the recognition of lease assets and lease liabilities arising from operating leases on the balance sheet. Subsequently, the FASB also issued a series of amendments to this new leases standard that address the transition methods available and clarify the guidance for lessor costs and other aspects of the new leases standard. The Company adopted the standard effective October 1, 2019 using the modified retrospective transition method with comparative periods continuing to be reported using the prior leases standard. The Company elected to apply the package of practical expedients permitted under the transition guidance, allowing the Company to carry forward the historical assessment of whether a contract was or contains a lease, lease classification and capitalization of initial direct costs. The adoption did not have a material impact on the consolidated financial statements. In accordance with ASU 2016-02, the Company determines if an arrangement is a lease at its inception. Right-of-use (“ROU”) assets, and corresponding lease liabilities, are recognized at the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As a majority of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company does not record a ROU asset and corresponding liability for leases with terms of 12 months or less. The Company does not include renewals in the determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company does not combine lease payments with non-lease components for any of its leases. Operating leases are recorded as ROU assets, which are included in other assets. The current portion of lease liabilities are included in accrued liabilities and the long-term portion is included in other liabilities on the consolidated balance sheet. The Company’s lease cost consists of amounts recognized under lease agreements in the results of operations adjusted for impairment and sublease income. In February 2018, the FASB issued ASU 2018-02, which allows a reclassification from accumulated other comprehensive income to retained earnings for adjustments to tax effects that were originally recorded in other comprehensive income due to changes in the U.S. federal corporate income tax rate resulting from the enactment of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Company adopted the ASU effective October 1, 2019. The adoption did not have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance for income taxes and making other minor improvements. The amendments in the ASU are effective for the Company on October 1, 2021. The Company does not plan to early adopt the ASU at this time. The adoption is not expected to have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the fair value measurement alternative. The amendments in the ASU are effective for the Company on October 1, 2021. The adoption is not expected to have a material impact on the consolidated financial statements. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate the Company’s net revenues by revenue category and by geography for the three months ended December 31, 2019 and 2018 : Three Months Ended 2019 2018 (in millions) Service revenues $ 2,555 $ 2,342 Data processing revenues 2,864 2,470 International transaction revenues 2,018 1,851 Other revenues 365 299 Client incentives (1,748 ) (1,456 ) Net revenues $ 6,054 $ 5,506 Three Months Ended 2019 2018 (in millions) U.S. $ 2,717 $ 2,508 International 3,337 2,998 Net revenues $ 6,054 $ 5,506 |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows: December 31, 2019 September 30, 2019 (in millions) Cash and cash equivalents $ 8,768 $ 7,838 Restricted cash and restricted cash equivalents: U.S. litigation escrow 1,634 1,205 Customer collateral 1,698 1,648 Prepaid expenses and other current assets 163 141 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 12,263 $ 10,832 |
U.S. and Europe Retrospective_2
U.S. and Europe Retrospective Responsibility Plan (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Retrospective Responsibility Plan [Abstract] | |
Changes in the U.S. litigation escrow account | The following table sets forth the changes in the restricted cash equivalents—U.S. litigation escrow account: Three Months Ended 2019 2018 (in millions) Balance at beginning of period $ 1,205 $ 1,491 Return of takedown payment to the litigation escrow account 467 — Payments to opt-out merchants (1) and interest earned on escrow funds (38 ) 5 Balance at end of period $ 1,634 $ 1,496 (1) These payments are associated with the Interchange Multidistrict Litigation. See Note 13—Legal Matters . |
Preferred Stock As-Converted Value and Book Value | The following table sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders’ equity within the Company’s consolidated balance sheets as of December 31, 2019 and September 30, 2019 : December 31, 2019 September 30, 2019 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) UK&I preferred stock $ 6,029 $ 2,285 $ 5,519 $ 2,285 Europe preferred stock 8,236 3,177 7,539 3,177 Total 14,265 5,462 13,058 5,462 Less: right to recover for covered losses (175 ) (175 ) (171 ) (171 ) Total recovery for covered losses available $ 14,090 $ 5,287 $ 12,887 $ 5,291 (1) Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers. (2) The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of December 31, 2019 ; (b) 12.936 and 13.884 , the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of December 31, 2019 , respectively; and (c) $187.90 , Visa’s class A common stock closing stock price as of December 31, 2019 . (3) The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2019 ; (b) 12.936 and 13.884 , the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2019 , respectively; and (c) $172.01 , Visa’s class A common stock closing stock price as of September 30, 2019 . |
Fair Value Measurements and I_2
Fair Value Measurements and Investments (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair Value Measurements Using Inputs Considered as Level 1 Level 2 December 31, September 30, December 31, September 30, (in millions) Assets Cash equivalents and restricted cash equivalents: Money market funds $ 7,539 $ 6,494 U.S. government-sponsored debt securities $ 350 $ 150 Investment securities: Marketable equity securities 154 126 U.S. government-sponsored debt securities 4,565 5,592 U.S. Treasury securities 902 675 Other current and non-current assets: Derivative instruments 274 437 Total $ 8,595 $ 7,295 $ 5,189 $ 6,179 Liabilities Accrued compensation and benefits: Deferred compensation liability $ 141 $ 113 Accrued and other liabilities: Derivative instruments $ 99 $ 52 Total $ 141 $ 113 $ 99 $ 52 |
Schedule of Non-Marketable Equity Securities | The following table summarizes the total carrying value of the Company’s non-marketable equity securities held as of December 31, 2019 including cumulative unrealized gains and losses: December 31, 2019 (in millions) Initial cost basis $ 595 Upward adjustments 119 Downward adjustments (including impairment) (4 ) Carrying amount, end of period $ 710 |
Schedule of Gains and Losses on Marketable and Non-Marketable Equity Securities | Gains and losses on the Company’s equity securities are summarized below. Three Months Ended 2019 2018 (in millions) Net gain (loss) on equity securities sold during the period $ 4 $ — Unrealized gain (loss) on equity securities held as of the end of the period 14 (20 ) Total gain (loss) recognized in non-operating income (expense), net $ 18 $ (20 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Present Value of Future Minimum Lease Payments | At December 31, 2019 , the present value of future minimum lease payments was as follows: December 31, 2019 (in millions) Remainder of 2020 $ 82 2021 108 2022 93 2023 86 2024 73 Thereafter 186 Total undiscounted lease payments 628 Less: imputed interest (54 ) Present value of lease liabilities $ 574 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company had outstanding debt as follows: December 31, 2019 September 30, 2019 Effective Interest Rate (1) (in millions, except percentages) 2.20% Senior Notes due December 2020 $ 3,000 $ 3,000 2.30 % 2.15% Senior Notes due September 2022 1,000 1,000 2.30 % 2.80% Senior Notes due December 2022 2,250 2,250 2.89 % 3.15% Senior Notes due December 2025 4,000 4,000 3.26 % 2.75% Senior Notes due September 2027 750 750 2.91 % 4.15% Senior Notes due December 2035 1,500 1,500 4.23 % 4.30% Senior Notes due December 2045 3,500 3,500 4.37 % 3.65% Senior Notes due September 2047 750 750 3.73 % Total senior notes 16,750 16,750 Unamortized discounts and debt issuance costs (105 ) (108 ) Hedge accounting fair value adjustments (2) 43 87 Less: current maturities of long-term debt (3,000 ) — Total long-term debt $ 13,688 $ 16,729 (1) Effective interest rates disclosed do not reflect hedge accounting adjustments. (2) Represents the change in fair value of interest rate swap agreements entered into on a portion of the outstanding Senior Notes. |
Settlement Guarantee Manageme_2
Settlement Guarantee Management (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Settlement Guarantee Management [Abstract] | |
Schedule of Customer Collateral | 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. At December 31, 2019 and September 30, 2019 , the Company held collateral as follows: December 31, September 30, (in millions) Restricted cash and restricted cash equivalents $ 1,698 $ 1,648 Pledged securities at market value 241 259 Letters of credit 1,325 1,293 Guarantees 506 477 Total $ 3,770 $ 3,677 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class | As-converted class A common stock. The following table presents the number of shares of each series and class of stock and the number of shares of class A common stock on an as-converted basis: December 31, 2019 September 30, 2019 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 rates) UK&I preferred stock 2 12.9360 32 2 12.9360 32 Europe preferred stock 3 13.8840 44 3 13.8840 44 Class A common stock (2) 1,709 — 1,709 1,718 — 1,718 Class B common stock 245 1.6228 (3) 398 245 1.6228 (3) 398 Class C common stock 11 4.0000 44 11 4.0000 45 Total 2,227 2,237 (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) Class A common stock shares outstanding reflect repurchases that settled on or before December 31, 2019 and September 30, 2019 . (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. |
Share Repurchase Program Disclosure | Common stock repurchases. The following table presents share repurchases in the open market for the following periods: Three Months Ended 2019 2018 (in millions, except per share data) Shares repurchased in the open market (1) 13 17 Average repurchase price per share (2) $ 179.27 $ 138.11 Total cost (2) $ 2,370 $ 2,393 (1) Shares repurchased in the open market reflect repurchases that settled during the three months ended December 31, 2019 and 2018 . 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 price per share and total cost is calculated based on unrounded numbers. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents earnings per share for the three months ended December 31, 2019 : Basic Earnings Per Share Diluted Earnings Per Share (in millions, except per share data) 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) Class A common stock $ 2,506 1,713 $ 1.46 $ 3,272 2,240 (3) $ 1.46 Class B common stock 583 245 $ 2.37 582 245 $ 2.37 Class C common stock 65 11 $ 5.85 65 11 $ 5.84 Participating securities (4) 118 Not presented Not presented 117 Not presented Not presented Net income $ 3,272 The following table presents earnings per share for the three months ended December 31, 2018 : Basic Earnings Per Share Diluted Earnings Per Share (in millions, except per share data) 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) Class A common stock $ 2,290 1,760 $ 1.30 $ 2,977 2,291 (3) $ 1.30 Class B common stock 521 245 $ 2.12 520 245 $ 2.12 Class C common stock 61 12 $ 5.20 61 12 $ 5.20 Participating securities (4) 105 Not presented Not presented 105 Not presented Not presented Net income $ 2,977 (1) Net income is allocated based on proportional ownership on an as-converted basis. The weighted-average number of shares of as-converted class B common stock used in the income allocation was 398 million and 400 million for the three months ended December 31, 2019 and 2018 , respectively. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 44 million and 47 million for the three months ended December 31, 2019 and 2018 , respectively. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three months ended December 31, 2019 and 2018 . The weighted-average number of shares of preferred stock included within participating securities was 44 million of as-converted Europe preferred stock for the three months ended December 31, 2019 and 2018 . (2) Figures in the table may not recalculate exactly due to rounding. Earnings per share is 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 computation includes approximately 3 million common stock equivalents for the three months ended December 31, 2019 and 2018 , because their effect would have been dilutive. The computation excludes 1 million of common stock equivalents for the three months ended December 31, 2019 and 2018 , because their effect would have been anti-dilutive. (4) Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company’s UK&I and Europe preferred stock, restricted stock units and earned performance-based shares. Participating securities’ income is allocated based on the weighted-average number of shares of as-converted stock. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan, or the EIP, during the three months ended December 31, 2019 : Granted Weighted-Average Grant Date Fair Value Weighted-Average Exercise Price Non-qualified stock options 1,247,982 $ 29.37 $ 182.50 Restricted stock units 2,189,944 $ 182.62 Performance-based shares (1) 470,128 $ 211.08 (1) Represents the maximum number of performance-based shares which could be earned. |
Legal Matters (Tables)
Legal Matters (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Legal Matters [Abstract] | |
Schedule of Loss Contingencies by Contingency | The following table summarizes the activity related to accrued litigation: Three Months Ended 2019 2018 (in millions) Balance at beginning of period $ 1,203 $ 1,434 Provision for uncovered legal matters — 7 Provision for covered legal matters 1 90 Reestablishment of prior accrual related to interchange multidistrict litigation 467 — Payments for legal matters (42 ) (42 ) Balance at end of period $ 1,629 $ 1,489 The following table summarizes the accrual activity related to U.S. covered litigation: Three Months Ended 2019 2018 (in millions) Balance at beginning of period $ 1,198 $ 1,428 Reestablishment of prior accrual related to interchange multidistrict litigation 467 — Payments for U.S. covered litigation (41 ) — Balance at end of period $ 1,624 $ 1,428 The following table summarizes the accrual activity related to VE territory covered litigation: Three Months Ended 2019 2018 (in millions) Balance at beginning of period $ 5 $ — Provision for VE territory covered litigation 1 90 Payments for VE territory covered litigation (1 ) (35 ) Balance at end of period $ 5 $ 55 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Dec. 31, 2019country |
Accounting Policies [Abstract] | |
Number of countries in which entity operates (more than) | 200 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 6,054 | $ 5,506 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 2,717 | 2,508 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 3,337 | 2,998 |
Service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 2,555 | 2,342 |
Data processing revenues | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 2,864 | 2,470 |
International transaction revenues | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 2,018 | 1,851 |
Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 365 | 299 |
Client incentives | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ (1,748) | $ (1,456) |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 8,768 | $ 7,838 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 12,263 | 10,832 | $ 11,115 | $ 10,977 |
U.S. litigation escrow | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | 1,634 | 1,205 | ||
Customer collateral | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | 1,698 | 1,648 | ||
Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | $ 163 | $ 141 |
U.S. and Europe Retrospective_3
U.S. and Europe Retrospective Responsibility Plan - Additional Details (Details) € in Millions, $ in Millions | Dec. 27, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Retrospective Responsibility Plan [Abstract] | ||||
Return of takedown payment to the litigation escrow account | $ | $ 467 | $ 467 | $ 0 | |
VE covered loss, maximum amount of loss to allow adjustment of conversion rate during six-month period | € | € 20 |
U.S. and Europe Retrospective_4
U.S. and Europe Retrospective Responsibility Plan - Changes in the U.S. Litigation Escrow Account (Detail) - USD ($) $ in Millions | Dec. 27, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Escrow Account [Roll Forward] | |||
Beginning balance | $ 1,205 | $ 1,491 | |
Return of takedown payment to the litigation escrow account | $ 467 | 467 | 0 |
Ending balance | 1,634 | 1,496 | |
Interest Income | Opt-out Merchants | |||
Escrow Account [Roll Forward] | |||
Payments to opt-out merchants and interest earned on escrow funds | $ (38) | $ 5 |
U.S. and Europe Retrospective_5
U.S. and Europe Retrospective Responsibility Plan - Changes in Preferred Stock and Right to Recover Covered Losses (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | |
Class of Stock [Line Items] | ||
Preferred Stock, As-Converted Value | $ 14,265 | $ 13,058 |
Preferred Stock, Book Value, Total | 5,462 | 5,462 |
Less: right to recover for covered losses | (175) | (171) |
Preferred Stock, As-Converted Value, Total Recovery for Covered Losses Available | 14,090 | 12,887 |
Preferred Stock, Book Value, Total Recovery for Covered Losses Available | $ 5,287 | $ 5,291 |
Share price (in dollars per share) | $ / shares | $ 187.90 | $ 172.01 |
UK&I preferred stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, As-Converted Value | $ 6,029 | $ 5,519 |
Preferred Stock, Book Value | $ 2,285 | $ 2,285 |
Preferred stock, shares outstanding (in shares) | shares | 2 | 2 |
Preferred stock, conversion rate | 12.936 | 12.936 |
Europe preferred stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, As-Converted Value | $ 8,236 | $ 7,539 |
Preferred Stock, Book Value | $ 3,177 | $ 3,177 |
Preferred stock, shares outstanding (in shares) | shares | 3 | 3 |
Preferred stock, conversion rate | 13.8840 | 13.884 |
Fair Value Measurements and I_3
Fair Value Measurements and Investments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Assets | ||
U.S. securities | $ 5,500 | $ 6,300 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Marketable equity securities | 154 | 126 |
Total | 8,595 | 7,295 |
Liabilities | ||
Deferred compensation liability | 141 | 113 |
Total | 141 | 113 |
Level 1 | U.S. Treasury securities | Fair Value, Measurements, Recurring | ||
Assets | ||
U.S. securities | 902 | 675 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Derivative instruments | 274 | 437 |
Total | 5,189 | 6,179 |
Liabilities | ||
Derivative instruments | 99 | 52 |
Total | 99 | 52 |
Level 2 | U.S. government-sponsored debt securities | Fair Value, Measurements, Recurring | ||
Assets | ||
U.S. securities | 4,565 | 5,592 |
Money market funds | Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents and restricted cash equivalents: | 7,539 | 6,494 |
U.S. government-sponsored debt securities | Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents and restricted cash equivalents: | $ 350 | $ 150 |
Fair Value Measurements and I_4
Fair Value Measurements and Investments - Additional Information (Detail) - USD ($) | Feb. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | |||
U.S. securities | 5,500,000,000 | $ 6,300,000,000 | ||
Upward adjustments | 9,000,000 | |||
Downward adjustments | 0 | |||
Impairment charges of non-marketable equity securities | $ 0 | $ 0 | ||
Impairment of indefinite-lived intangible assets and goodwill | $ 0 | |||
Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale investment securities, stated maturities | 1 year | |||
Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale investment securities, stated maturities | 5 years | |||
Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying value of long-term debt | $ 16,700,000,000 | 16,700,000,000 | ||
Estimated Fair Value | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Estimated fair value of long-term deb | $ 18,300,000,000 | $ 18,400,000,000 |
Fair Value Measurements and I_5
Fair Value Measurements and Investments - Schedule of Non-Marketable Equity Securities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Initial cost basis | $ 595 |
Upward adjustments | 119 |
Downward adjustments (including impairment) | (4) |
Carrying amount, end of period | $ 710 |
Fair Value Measurements and I_6
Fair Value Measurements and Investments - Schedule of Gains and Losses on Marketable and Non-Marketable Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Net gain (loss) on equity securities sold during the period | $ 4 | $ 0 |
Unrealized gain (loss) on equity securities held as of the end of the period | 14 | (20) |
Total gain (loss) recognized in non-operating income (expense), net | $ 18 | $ (20) |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($)option_to_renew | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 26 |
Weighted average remaining lease term (in years) | 7 years |
Weighted average discount rate | 2.31% |
Operating leases, not yet commenced, lease obligations | $ 507 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Number of renewal options | option_to_renew | 1 |
Operating leases, non-cancellable lease terms | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating leases, non-cancellable lease terms | 15 years |
Leases - Schedule of Present Va
Leases - Schedule of Present Value of Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 82 |
2021 | 108 |
2022 | 93 |
2023 | 86 |
2024 | 73 |
Thereafter | 186 |
Total undiscounted lease payments | 628 |
Less: imputed interest | (54) |
Present value of lease liabilities | $ 574 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Debt Instrument [Line Items] | ||
Unamortized discounts and debt issuance costs | $ (105) | $ (108) |
Hedge accounting fair value adjustments | 43 | 87 |
Less: current maturities of long-term debt | (3,000) | 0 |
Total long-term debt | 13,688 | 16,729 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total senior notes | 16,750 | 16,750 |
Senior Notes | 2.20% Senior Notes due December 2020 | ||
Debt Instrument [Line Items] | ||
Total senior notes | $ 3,000 | 3,000 |
Effective interest rate (percent) | 2.30% | |
Stated interest rate | 2.20% | |
Senior Notes | 2.15% Senior Notes due September 2022 | ||
Debt Instrument [Line Items] | ||
Total senior notes | $ 1,000 | 1,000 |
Effective interest rate (percent) | 2.30% | |
Stated interest rate | 2.15% | |
Senior Notes | 2.80% Senior Notes due December 2022 | ||
Debt Instrument [Line Items] | ||
Total senior notes | $ 2,250 | 2,250 |
Effective interest rate (percent) | 2.89% | |
Stated interest rate | 2.80% | |
Senior Notes | 3.15% Senior Notes due December 2025 | ||
Debt Instrument [Line Items] | ||
Total senior notes | $ 4,000 | 4,000 |
Effective interest rate (percent) | 3.26% | |
Stated interest rate | 3.15% | |
Senior Notes | 2.75% Senior Notes due September 2027 | ||
Debt Instrument [Line Items] | ||
Total senior notes | $ 750 | 750 |
Effective interest rate (percent) | 2.91% | |
Stated interest rate | 2.75% | |
Senior Notes | 4.15% Senior Notes due December 2035 | ||
Debt Instrument [Line Items] | ||
Total senior notes | $ 1,500 | 1,500 |
Effective interest rate (percent) | 4.23% | |
Stated interest rate | 4.15% | |
Senior Notes | 4.30% Senior Notes due December 2045 | ||
Debt Instrument [Line Items] | ||
Total senior notes | $ 3,500 | 3,500 |
Effective interest rate (percent) | 4.37% | |
Stated interest rate | 4.30% | |
Senior Notes | 3.65% Senior Notes due September 2047 | ||
Debt Instrument [Line Items] | ||
Total senior notes | $ 750 | $ 750 |
Effective interest rate (percent) | 3.73% | |
Stated interest rate | 3.65% |
Settlement Guarantee Manageme_3
Settlement Guarantee Management - Additional Information (Details) $ in Billions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Settlement Guarantee Management [Abstract] | |
Maximum Settlement Exposure | $ 97.3 |
Average Daily Settlement Exposure | $ 59.2 |
Settlement Guarantee Manageme_4
Settlement Guarantee Management - Collateral (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Settlement Guarantee Management [Abstract] | ||
Restricted cash and restricted cash equivalents | $ 1,698 | $ 1,648 |
Pledged securities at market value | 241 | 259 |
Letters of credit | 1,325 | 1,293 |
Guarantees | 506 | 477 |
Total | $ 3,770 | $ 3,677 |
Stockholders' Equity - Number o
Stockholders' Equity - Number of Shares of Class A Common Shares Outstanding on an As-Converted Basis (Detail) shares in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019shares | Sep. 30, 2019shares | |
Schedule of Common Stock as Converted [Line Items] | ||
As-converted Class A Common Stock (in shares) | 2,227 | 2,237 |
U.K.& I preferred stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 2 | 2 |
Preferred stock, conversion rate into Class A Common Stock | 12.936 | 12.936 |
As-converted Class A Common Stock (in shares) | 32 | 32 |
Europe preferred stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 3 | 3 |
Preferred stock, conversion rate into Class A Common Stock | 13.8840 | 13.884 |
As-converted Class A Common Stock (in shares) | 44 | 44 |
Class A common stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Common stock, shares outstanding (in shares) | 1,709 | 1,718 |
As-converted Class A Common Stock (in shares) | 1,709 | 1,718 |
Class B common stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Common stock, shares outstanding (in shares) | 245 | 245 |
Common stock, conversion rate into Class A Common Stock | 1.6228 | 1.6228 |
As-converted Class A Common Stock (in shares) | 398 | 398 |
Class C common stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Common stock, shares outstanding (in shares) | 11 | 11 |
Common stock, conversion rate into Class A Common Stock | 4 | 4 |
As-converted Class A Common Stock (in shares) | 44 | 45 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases in the Open Market (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||
Total cost | $ 2,370 | $ 2,393 |
Class A common stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased in the open market (in shares) | 13 | 17 |
Average repurchase price per share (in dollars per share) | $ 179.27 | $ 138.11 |
Total cost | $ 2,370 | $ 2,393 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2020 | Jan. 28, 2020 | Jan. 31, 2019 | |
Stockholders Equity Note [Line Items] | |||||
Share repurchase program | $ 8,500,000,000 | ||||
January 2019 share repurchase program remaining authorized funds | $ 1,700,000,000 | ||||
Cash dividends declared and paid, at a quarterly amount per Class A share | $ 671,000,000 | $ 572,000,000 | |||
Subsequent Event | |||||
Stockholders Equity Note [Line Items] | |||||
Additional share repurchase program | $ 9,500,000,000 | ||||
Subsequent Event | Class A common stock | |||||
Stockholders Equity Note [Line Items] | |||||
Quarterly cash dividend (in dollars per share) | $ 0.30 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Net income | $ 3,272 | $ 2,977 |
Class A common stock | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Income Allocation - Basic | $ 2,506 | $ 2,290 |
Weighted- Average Shares Outstanding - Basic (in shares) | 1,713 | 1,760 |
Earnings per Share - Basic (in dollars per share) | $ 1.46 | $ 1.30 |
Income Allocation - Diluted | $ 3,272 | $ 2,977 |
Weighted- Average Shares Outstanding - Diluted (in shares) | 2,240 | 2,291 |
Earnings per Share - Diluted (in dollars per share) | $ 1.46 | $ 1.30 |
Class B common stock | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Income Allocation - Basic | $ 583 | $ 521 |
Weighted- Average Shares Outstanding - Basic (in shares) | 245 | 245 |
Earnings per Share - Basic (in dollars per share) | $ 2.37 | $ 2.12 |
Income Allocation - Diluted | $ 582 | $ 520 |
Weighted- Average Shares Outstanding - Diluted (in shares) | 245 | 245 |
Earnings per Share - Diluted (in dollars per share) | $ 2.37 | $ 2.12 |
Class C common stock | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Income Allocation - Basic | $ 65 | $ 61 |
Weighted- Average Shares Outstanding - Basic (in shares) | 11 | 12 |
Earnings per Share - Basic (in dollars per share) | $ 5.85 | $ 5.20 |
Income Allocation - Diluted | $ 65 | $ 61 |
Weighted- Average Shares Outstanding - Diluted (in shares) | 11 | 12 |
Earnings per Share - Diluted (in dollars per share) | $ 5.84 | $ 5.20 |
Participating securities | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Income Allocation - Basic | $ 118 | $ 105 |
Income Allocation - Diluted | $ 117 | $ 105 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Common stock equivalents included in the computation of diluted shares outstanding (in shares) | 3 | 3 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 1 | 1 |
Class B common stock | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Weighted-average as-converted common stock used in income allocation (in shares) | 398 | 400 |
Class C common stock | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Weighted-average as-converted common stock used in income allocation (in shares) | 44 | 47 |
UK&I preferred stock | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Weighted-average as-converted common stock used in income allocation (in shares) | 32 | 32 |
Europe preferred stock | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Weighted-average as-converted common stock used in income allocation (in shares) | 44 | 44 |
Share-based Compensation - Awar
Share-based Compensation - Awards Granted to Company Employees and Non-employee Directors Under the 2007 Equity Incentive Compensation Plan (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Non-qualified stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 1,247,982 | |
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 29.37 | |
Weighted-Average Exercise Price (in USD per share) | $ 182.50 | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 2,189,944 | |
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 182.62 | |
Performance-bases shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 470,128 | |
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 211.08 | |
Equity Incentive Compensation Plan, 2007 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation cost | $ 111 | $ 95 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation, percent | 18.00% | 18.00% |
Increase in unrecognized tax benefits | $ 63 | |
Effective income tax rate reconciliation Unrecognized Tax Benefits that would Favorably Impact Effective Tax Rate | $ 13 |
Legal Matters - Schedule of Acc
Legal Matters - Schedule of Accrued Litigation for Both Covered and Non-Covered Litigation (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingency Accrual [Roll Forward] | ||
Balance at beginning of period | $ 1,203 | $ 1,434 |
Provision for legal matters | 1 | 90 |
Balance at end of period | 1,629 | 1,489 |
U.S. Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Balance at beginning of period | 1,198 | 1,428 |
Balance at end of period | 1,624 | 1,428 |
VE Territory Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Balance at beginning of period | 5 | 0 |
Provision for legal matters | 1 | 90 |
Balance at end of period | 5 | 55 |
Interchange Multidistrict Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Provision for legal matters | 467 | 0 |
Interchange Multidistrict Litigation | U.S. Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Provision for legal matters | 467 | 0 |
Unsettled | ||
Loss Contingency Accrual [Roll Forward] | ||
Provision for legal matters | 0 | 7 |
Settled Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Payments for legal matters | (42) | (42) |
Settled Litigation | U.S. Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Payments for legal matters | (41) | 0 |
Settled Litigation | VE Territory Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Payments for legal matters | $ (1) | $ (35) |
Legal Matters - Additional Info
Legal Matters - Additional Information (Details) $ in Millions | Dec. 27, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 31, 2020merchant |
Loss Contingencies [Line Items] | ||||
Provision for legal matters | $ 1 | $ 90 | ||
Return of takedown payment to the litigation escrow account | $ 467 | 467 | 0 | |
Interchange Multidistrict Litigation | ||||
Loss Contingencies [Line Items] | ||||
Provision for legal matters | 467 | $ 0 | ||
Subsequent Event | U.K. Merchant Litigation | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | merchant | 500 | |||
Number of claims settled | merchant | 100 | |||
Merchants with outstanding claims | merchant | 400 | |||
Subsequent Event | U.K. Merchant Litigation | Threatened Litigation | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | merchant | 30 | |||
Visa, MasterCard, and Certain U.S. Financial Institutions | ||||
Loss Contingencies [Line Items] | ||||
Maximum takedown payments the defendants are entitled to | 700 | |||
U.S. Covered Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Maximum takedown payments the defendants are entitled to | 467 | |||
U.S. Covered Litigation [Member] | Interchange Multidistrict Litigation | ||||
Loss Contingencies [Line Items] | ||||
Provision for legal matters | $ 600 | |||
Return of takedown payment to the litigation escrow account | $ 467 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Plaid, Inc. $ in Billions | Jan. 13, 2020USD ($) |
Subsequent Event [Line Items] | |
Total consideration | $ 5.3 |
Total consideration, cash | 4.9 |
Total consideration, restricted stock units | $ 0.4 |