Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2020 | Nov. 13, 2020 | Mar. 31, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2020 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 272.7 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s Proxy Statement for the 2021 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant’s fiscal year ended September 30, 2020. | ||
Entity Central Index Key | 0001403161 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,692,383,762 | ||
Class B common stock | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class B common stock, par value $0.0001 per share | ||
Entity Common Stock, Shares Outstanding | 245,513,385 | ||
Class C common stock | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class C common stock, par value $0.0001 per share | ||
Entity Common Stock, Shares Outstanding | 10,684,539 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Assets | ||
Cash and cash equivalents | $ 16,289 | $ 7,838 |
Restricted cash equivalents—U.S. litigation escrow | 901 | 1,205 |
Investment securities | 3,752 | 4,236 |
Settlement receivable | 1,264 | 3,048 |
Accounts receivable | 1,618 | 1,542 |
Customer collateral | 1,850 | 1,648 |
Current portion of client incentives | 1,214 | 741 |
Prepaid expenses and other current assets | 757 | 712 |
Total current assets | 27,645 | 20,970 |
Investment securities | 231 | 2,157 |
Client incentives | 3,175 | 2,084 |
Property, equipment and technology, net | 2,737 | 2,695 |
Goodwill | 15,910 | 15,656 |
Intangible assets, net | 27,808 | 26,780 |
Other assets | 3,413 | 2,232 |
Total assets | 80,919 | 72,574 |
Liabilities | ||
Accounts payable | 174 | 156 |
Settlement payable | 1,736 | 3,990 |
Customer collateral | 1,850 | 1,648 |
Accrued compensation and benefits | 821 | 796 |
Client incentives | 4,176 | 3,997 |
Accrued liabilities | 1,840 | 1,625 |
Current maturities of debt | 2,999 | 0 |
Accrued litigation | 914 | 1,203 |
Total current liabilities | 14,510 | 13,415 |
Long-term debt | 21,071 | 16,729 |
Deferred tax liabilities | 5,237 | 4,807 |
Other liabilities | 3,891 | 2,939 |
Total liabilities | 44,709 | 37,890 |
Commitments and contingencies (Note 18) | ||
Equity | ||
Right to recover for covered losses | (39) | (171) |
Additional paid-in capital | 16,721 | 16,541 |
Accumulated income | 14,088 | 13,502 |
Accumulated other comprehensive income (loss), net: | ||
Investment securities | 3 | 6 |
Defined benefit pension and other postretirement plans | (196) | (192) |
Derivative instruments | (291) | 199 |
Foreign currency translation adjustments | 838 | (663) |
Total accumulated other comprehensive income (loss), net | 354 | (650) |
Total equity | 36,210 | 34,684 |
Total liabilities and equity | 80,919 | 72,574 |
Series A convertible participating preferred stock | ||
Equity | ||
Preferred stock | 2,437 | 0 |
Series B convertible participating preferred stock | ||
Equity | ||
Preferred stock | 1,106 | 2,285 |
Series C convertible participating preferred stock | ||
Equity | ||
Preferred stock | 1,543 | 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 shares in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 25 | 25 |
Preferred stock, shares issued (in shares) | 5 | 5 |
Preferred stock, shares outstanding (in shares) | 5 | 5 |
Series A convertible participating preferred stock | ||
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series B convertible participating preferred stock | ||
Preferred stock, shares issued (in shares) | 2 | 2 |
Preferred stock, shares outstanding (in shares) | 2 | 2 |
Series C convertible participating preferred stock | ||
Preferred stock, shares issued (in shares) | 3 | 3 |
Preferred stock, shares outstanding (in shares) | 3 | 3 |
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 | 2,001,622 |
Common stock, shares, issued (in shares) | 1,683 | 1,718 |
Common stock, shares, outstanding (in shares) | 1,683 | 1,718 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 622 | 622 |
Common stock, shares, issued (in shares) | 245 | 245 |
Common stock, shares, outstanding (in shares) | 245 | 245 |
Class C common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,097 | 1,097 |
Common stock, shares, issued (in shares) | 11 | 11 |
Common stock, shares, outstanding (in shares) | 11 | 11 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net revenues | $ 21,846 | $ 22,977 | $ 20,609 |
Operating Expenses | |||
Personnel | 3,785 | 3,444 | 3,170 |
Marketing | 971 | 1,105 | 988 |
Network and processing | 727 | 721 | 686 |
Professional fees | 408 | 454 | 446 |
Depreciation and amortization | 767 | 656 | 613 |
General and administrative | 1,096 | 1,196 | 1,145 |
Litigation provision | 11 | 400 | 607 |
Total operating expenses | 7,765 | 7,976 | 7,655 |
Operating income | 14,081 | 15,001 | 12,954 |
Non-operating Income (Expense) | |||
Interest expense, net | (516) | (533) | (612) |
Investment income and other | 225 | 416 | 464 |
Total non-operating income (expense) | (291) | (117) | (148) |
Income before income taxes | 13,790 | 14,884 | 12,806 |
Income tax provision | 2,924 | 2,804 | 2,505 |
Net income | $ 10,866 | $ 12,080 | $ 10,301 |
Class A common stock | |||
Earnings Per Share [Abstract] | |||
Basic earnings per share (in dollars per share) | $ 4.90 | $ 5.32 | $ 4.43 |
Basic weighted-average shares outstanding (in shares) | 1,697 | 1,742 | 1,792 |
Diluted earnings per share (in dollars per share) | $ 4.89 | $ 5.32 | $ 4.42 |
Diluted weighted-average shares outstanding (in shares) | 2,223 | 2,272 | 2,329 |
Class B common stock | |||
Earnings Per Share [Abstract] | |||
Basic earnings per share (in dollars per share) | $ 7.94 | $ 8.68 | $ 7.28 |
Basic weighted-average shares outstanding (in shares) | 245 | 245 | 245 |
Diluted earnings per share (in dollars per share) | $ 7.93 | $ 8.66 | $ 7.27 |
Diluted weighted-average shares outstanding (in shares) | 245 | 245 | 245 |
Class C common stock | |||
Earnings Per Share [Abstract] | |||
Basic earnings per share (in dollars per share) | $ 19.58 | $ 21.30 | $ 17.72 |
Basic weighted-average shares outstanding (in shares) | 11 | 12 | 12 |
Diluted earnings per share (in dollars per share) | $ 19.56 | $ 21.26 | $ 17.69 |
Diluted weighted-average shares outstanding (in shares) | 11 | 12 | 12 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 10,866 | $ 12,080 | $ 10,301 |
Investment securities: | |||
Net unrealized gain (loss) | 1 | 20 | 94 |
Income tax effect | 0 | (5) | (19) |
Reclassification adjustments | (3) | 1 | (215) |
Income tax effect | 1 | 0 | 50 |
Defined benefit pension and other postretirement plans: | |||
Net unrealized actuarial gain (loss) and prior service credit (cost) | (7) | (174) | 16 |
Income tax effect | 1 | 36 | (5) |
Reclassification adjustments | 18 | 9 | 5 |
Income tax effect | (3) | (2) | (1) |
Derivative instruments: | |||
Net unrealized gain (loss) | (547) | 233 | 90 |
Income tax effect | 119 | (25) | (24) |
Reclassification adjustments | (81) | (85) | 32 |
Income tax effect | 19 | 16 | (2) |
Foreign currency translation adjustments | 1,511 | (1,228) | (352) |
Other comprehensive income (loss), net of tax | 1,029 | (1,204) | (331) |
Comprehensive income | $ 11,895 | $ 10,876 | $ 9,970 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Series B Preferred Stock | Series C Preferred Stock | Class A common stock | Preferred Stock | Preferred StockConversion of Series A Preferred Stock Upon Sale Into Public Market | Preferred StockSeries A Preferred Stock | Preferred StockSeries A Preferred StockConversion of Series A Preferred Stock Upon Sale Into Public Market | [2] | Preferred StockSeries B Preferred Stock | Preferred StockSeries C Preferred Stock | Common StockClass A common stock | Common StockClass A common stockConversion of Series A Preferred Stock Upon Sale Into Public Market | Common StockClass A common stockConversion of Class C Common Stock Upon Sale Into Public Market | Common StockClass B common stock | Common StockClass C common stock | Common StockClass C common stockConversion of Class C Common Stock Upon Sale Into Public Market | Right to Recover for Covered Losses | Additional Paid-In Capital | Additional Paid-In CapitalConversion of Series A Preferred Stock Upon Sale Into Public Market | Accumulated Income | Accumulated IncomeCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss), Net | Accumulated Other Comprehensive Income (Loss), NetCumulative Effect, Period of Adoption, Adjustment | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Adoption of new accounting standards | $ 32,760 | $ 5,526 | $ (52) | $ 16,900 | $ 9,508 | $ 878 | ||||||||||||||||||||||
Beginning Balance (in shares) at Sep. 30, 2017 | 2 | 3 | 1,818 | 245 | 13 | |||||||||||||||||||||||
Beginning Balance at Sep. 30, 2017 | 32,760 | 5,526 | (52) | 16,900 | 9,508 | 878 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Net income | 10,301 | 10,301 | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (331) | (331) | ||||||||||||||||||||||||||
Comprehensive income | 9,970 | |||||||||||||||||||||||||||
Adoption of new accounting standards | 34,006 | $ 392 | 5,470 | (7) | 16,678 | 11,318 | $ 385 | 547 | $ 7 | |||||||||||||||||||
VE territory covered losses incurred | (11) | (11) | ||||||||||||||||||||||||||
Recovery through conversion rate adjustment | $ 35 | $ 21 | (56) | 56 | ||||||||||||||||||||||||
Issuance of series A preferred stock | 0 | 0 | ||||||||||||||||||||||||||
Conversion of stock upon sales into public market (in shares) | 4 | (1) | ||||||||||||||||||||||||||
Vesting of restricted stock and performance-based shares (in shares) | 2 | |||||||||||||||||||||||||||
Share-based compensation, net of forfeitures (in shares) | [1] | 0 | ||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | 327 | 327 | ||||||||||||||||||||||||||
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 | (94) | (94) | ||||||||||||||||||||||||||
Cash proceeds from issuance of common stock under employee equity plans (in shares) | 3 | |||||||||||||||||||||||||||
Cash proceeds from issuance of common stock under employee equity plans | 164 | 164 | ||||||||||||||||||||||||||
Cash dividends declared and paid, at a quarterly amount per Class A share | (1,918) | (1,918) | ||||||||||||||||||||||||||
Repurchase of class A common stock (in shares) | (58) | (58) | ||||||||||||||||||||||||||
Repurchase of class A common stock | (7,192) | $ (7,192) | (619) | (6,573) | ||||||||||||||||||||||||
Ending Balance (in shares) at Sep. 30, 2018 | 2 | 3 | 1,768 | 245 | 12 | |||||||||||||||||||||||
Ending Balance at Sep. 30, 2018 | 34,006 | 392 | 5,470 | (7) | 16,678 | 11,318 | 385 | 547 | 7 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Adoption of new accounting standards | 34,006 | 392 | 5,470 | (7) | 16,678 | 11,318 | 385 | 547 | 7 | |||||||||||||||||||
Net income | 12,080 | 12,080 | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (1,204) | (1,204) | ||||||||||||||||||||||||||
Comprehensive income | 10,876 | |||||||||||||||||||||||||||
Adoption of new accounting standards | 34,684 | 0 | 5,462 | $ 2,285 | $ 3,177 | (171) | 16,541 | 13,502 | 25 | (650) | (25) | |||||||||||||||||
VE territory covered losses incurred | (172) | (172) | ||||||||||||||||||||||||||
Recovery through conversion rate adjustment | 6 | 2 | (8) | 8 | ||||||||||||||||||||||||
Issuance of series A preferred stock | 0 | 0 | ||||||||||||||||||||||||||
Conversion of stock upon sales into public market (in shares) | 2 | (1) | ||||||||||||||||||||||||||
Vesting of restricted stock and performance-based shares (in shares) | 3 | |||||||||||||||||||||||||||
Share-based compensation, net of forfeitures (in shares) | ||||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | 407 | 407 | ||||||||||||||||||||||||||
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 | (111) | (111) | ||||||||||||||||||||||||||
Cash proceeds from issuance of common stock under employee equity plans (in shares) | 2 | |||||||||||||||||||||||||||
Cash proceeds from issuance of common stock under employee equity plans | 162 | 162 | ||||||||||||||||||||||||||
Cash dividends declared and paid, at a quarterly amount per Class A share | (2,269) | (2,269) | ||||||||||||||||||||||||||
Repurchase of class A common stock (in shares) | (56) | (56) | ||||||||||||||||||||||||||
Repurchase of class A common stock | (8,607) | $ (8,607) | (595) | (8,012) | ||||||||||||||||||||||||
Ending Balance (in shares) at Sep. 30, 2019 | 0 | 2 | 3 | 1,718 | 245 | 11 | ||||||||||||||||||||||
Ending Balance at Sep. 30, 2019 | 34,684 | 0 | 5,462 | $ 2,285 | $ 3,177 | (171) | 16,541 | 13,502 | 25 | (650) | (25) | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Adoption of new accounting standards | 34,684 | 0 | 5,462 | 2,285 | 3,177 | (171) | 16,541 | 13,502 | 25 | (650) | (25) | |||||||||||||||||
Net income | 10,866 | 10,866 | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 1,029 | 1,029 | ||||||||||||||||||||||||||
Comprehensive income | 11,895 | |||||||||||||||||||||||||||
Adoption of new accounting standards | 34,684 | $ 0 | 5,086 | 1,106 | 1,543 | (39) | 16,721 | 14,088 | $ 25 | 354 | $ (25) | |||||||||||||||||
VE territory covered losses incurred | (37) | 0 | 0 | (37) | ||||||||||||||||||||||||
Recovery through conversion rate adjustment | 5 | 72 | 92 | (164) | $ 72 | $ 92 | 169 | |||||||||||||||||||||
Issuance of series A preferred stock (in shares) | [2] | 0 | ||||||||||||||||||||||||||
Issuance of series A preferred stock | (5) | $ 3,084 | $ 4,216 | (5) | ||||||||||||||||||||||||
Conversion of stock upon sales into public market (in shares) | 0 | 3 | 3 | 0 | [2] | |||||||||||||||||||||||
Conversion of series A preferred stock upon sales into public market | $ (207) | $ 207 | ||||||||||||||||||||||||||
Vesting of restricted stock and performance-based shares (in shares) | 3 | |||||||||||||||||||||||||||
Share-based compensation, net of forfeitures (in shares) | ||||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | 416 | 416 | ||||||||||||||||||||||||||
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 | (160) | (160) | ||||||||||||||||||||||||||
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 | 190 | 190 | ||||||||||||||||||||||||||
Cash dividends declared and paid, at a quarterly amount per Class A share | (2,664) | (2,664) | ||||||||||||||||||||||||||
Repurchase of class A common stock (in shares) | (44) | (44) | ||||||||||||||||||||||||||
Repurchase of class A common stock | (8,114) | $ (8,114) | (473) | (7,641) | ||||||||||||||||||||||||
Ending Balance (in shares) at Sep. 30, 2020 | 0 | [2] | 2 | 3 | 1,683 | 245 | 11 | |||||||||||||||||||||
Ending Balance at Sep. 30, 2020 | 36,210 | 5,086 | $ 1,106 | $ 1,543 | (39) | 16,721 | 14,088 | 354 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Adoption of new accounting standards | $ 36,210 | $ 5,086 | $ 1,106 | $ 1,543 | $ (39) | $ 16,721 | $ 14,088 | $ 354 | ||||||||||||||||||||
[1] | Decrease in Class A common stock related to forfeitures of restricted stock awards is less than one million shares. | |||||||||||||||||||||||||||
[2] | Increase, decrease or balance is less than one million shares. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Dividends paid, quarterly, per share (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.210 | $ 0.210 | $ 0.210 | $ 0.195 |
Dividends declared, quarterly, per share (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.210 | $ 0.210 | $ 0.210 | $ 0.195 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | |||
Net income | $ 10,866 | $ 12,080 | $ 10,301 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Client incentives | 6,664 | 6,173 | 5,491 |
Share-based compensation | 416 | 407 | 327 |
Depreciation and amortization of property, equipment, technology and intangible assets | 767 | 656 | 613 |
Deferred income taxes | 307 | 214 | (1,277) |
VE territory covered losses incurred | (37) | (172) | (11) |
Other | (145) | (271) | (64) |
Change in operating assets and liabilities: | |||
Settlement receivable | 1,858 | (1,533) | (223) |
Accounts receivable | (43) | (333) | (70) |
Client incentives | (8,081) | (6,430) | (4,682) |
Other assets | (402) | (310) | 59 |
Accounts payable | 21 | (24) | 3 |
Settlement payable | (2,384) | 1,931 | 262 |
Accrued and other liabilities | 923 | 627 | 1,760 |
Accrued litigation | (290) | (231) | 452 |
Net cash provided by (used in) operating activities | 10,440 | 12,784 | 12,941 |
Investing Activities | |||
Purchases of property, equipment and technology | (736) | (756) | (718) |
Investment securities: | |||
Purchases | (2,075) | (2,653) | (5,772) |
Proceeds from maturities and sales | 4,510 | 3,996 | 3,636 |
Acquisitions, net of cash and restricted cash acquired | (77) | (699) | (196) |
Purchases of / contributions to other investments | (267) | (501) | (50) |
Other investing activities | 72 | 22 | 16 |
Net cash provided by (used in) investing activities | 1,427 | (591) | (3,084) |
Financing Activities | |||
Repurchase of class A common stock | (8,114) | (8,607) | (7,192) |
Proceeds from issuance of senior notes | 7,212 | 0 | 0 |
Repayments of debt | 0 | 0 | (1,750) |
Dividends paid | (2,664) | (2,269) | (1,918) |
Payment of deferred purchase consideration related to the Visa Europe acquisition | 0 | (1,236) | 0 |
Cash proceeds from issuance of common stock under employee equity plans | 190 | 162 | 164 |
Restricted stock and performance-based shares settled in cash for taxes | (160) | (111) | (94) |
Payments to settle derivative instruments | (333) | 0 | 0 |
Other financing activities | (99) | 0 | 0 |
Net cash provided by (used in) financing activities | (3,968) | (12,061) | (10,790) |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 440 | (277) | (101) |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 8,339 | (145) | (1,034) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year | 10,832 | 10,977 | 12,011 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year | 19,171 | 10,832 | 10,977 |
Supplemental Disclosure | |||
Cash paid for income taxes, net | 2,671 | 2,648 | 2,285 |
Interest payments on debt | 537 | 537 | 545 |
Charitable contribution of investment securities to Visa Foundation | 0 | 0 | 195 |
Accruals related to purchases of property, equipment and technology | $ 38 | $ 95 | $ 77 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
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 innovative, 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 network — VisaNet — which facilitates authorization, clearing and settlement of payment transactions and enables the Company to provide its financial institution and seller 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 of 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 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 consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation. The Company’s activities are interrelated, and each activity is dependent upon and supportive of the other. All significant operating decisions are based on analysis of Visa as a single global business. Accordingly, the Company has one reportable segment, Payment Services. Use of estimates . The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Future actual results could differ materially from these estimates. The worldwide spread of coronavirus (“COVID-19”) has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 continues to impact the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. The use of estimates in specific accounting policies is described further below as appropriate. Cash, cash equivalents, restricted cash, and restricted cash equivalents . 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. See Note 4—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents. Restricted cash equivalents—U.S. litigation escrow . The Company maintains an escrow account from which monetary liabilities from settlements of, or judgments in, the U.S. covered litigation are paid. See Note 5—U.S. and Europe Retrospective Responsibility Plans and Note 20—Legal Matters for a discussion of the U.S. covered litigation. The escrow funds are held in money market investments, together with the interest earned, less applicable taxes payable, and classified as restricted cash equivalents on the consolidated balance sheets. Interest earned on escrow funds is included in non-operating income (expense) on the consolidated statements of operations. Investments and fair value. The Company measures certain assets and liabilities at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are reported under a three-level valuation hierarchy. See Note 6—Fair Value Measurements and Investments. Marketable equity securities. Marketable equity securities, which are reported in investment securities on the consolidated balance sheets, include mutual fund investments related to various employee compensation and benefit plans. Trading activity in these investments is at the direction of the Company’s employees. These investments are held in a trust and are not available for the Company’s operational or liquidity needs. Interest and dividend income as well as gains and losses, realized and unrealized, from changes in fair value are recorded in non-operating income (expense), and offset in personnel expense on the consolidated statements of operations. Available-for-sale debt securities. The Company’s investment in debt securities, which are classified as available-for-sale and reported in investment securities on the consolidated balance sheets, include U.S. government-sponsored debt securities and U.S. Treasury securities. These securities are recorded at cost at the time of purchase and are carried at fair value. The Company considers these securities to be available-for-sale to meet working capital and liquidity needs. Investments with original maturities of greater than 90 days and stated maturities of less than one year from the balance sheet date, or investments that the Company intends to sell within one year, are classified as current assets, while all other securities are classified as non-current assets. Unrealized gains and losses are reported in accumulated other comprehensive income (loss) on the consolidated balance sheets until realized. The specific identification method is used to calculate realized gain or loss on the sale of securities, which is recorded in non-operating income (expense) on the consolidated statements of operations. Interest income is recognized when earned and is included in non-operating income (expense) on the consolidated statements of operations. The Company evaluates its debt securities for other-than-temporary impairment (“OTTI”) on an ongoing basis. When there has been a decline in fair value of a debt security below the amortized cost basis, the Company recognizes OTTI if: (1) it has the intent to sell the security; (2) it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis; or (3) it does not expect to recover the entire amortized cost basis of the security. Non-marketable equity securities. The Company’s non-marketable equity securities, which are reported in other assets on the consolidated balance sheets, include investments in privately held companies without readily determinable market values. The Company adjusts the carrying value of its non-marketable equity securities to fair value when transactions for identical or similar investments of the same issuer are observable. All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in non-operating income (expense). The Company applies the equity method of accounting for investments in other entities when it holds between 20% and 50% ownership in the entity or when it exercises significant influence. Under the equity method, the Company’s share of each entity’s profit or loss is reflected in non-operating income (expense) on the consolidated statements of operations. The equity method of accounting is also used for flow-through entities such as limited partnerships and limited liability companies when the investment ownership percentage is equal to or greater than 5% of outstanding ownership interests, regardless of whether the Company has significant influence over the investees. The Company applies the fair value measurement alternative for investments in other entities when it holds less than 20% ownership in the entity and does not exercise significant influence, or for flow-through entities when the investment ownership is less than 5% and the Company does not exercise significant influence. These investments consist of equity holdings in non-public companies and are recorded in other assets on the consolidated balance sheets. The Company regularly reviews investments accounted for under the equity method and the fair value measurement alternative for possible impairment, which generally involves an analysis of the facts and changes in circumstances influencing the investment, expectations of the entity’s cash flows and capital needs, and the viability of its business model. Financial instruments . The Company considers the following to be financial instruments: cash, cash equivalents, restricted cash, restricted cash equivalents, investment securities, settlement receivable and payable, accounts receivable, customer collateral, non-marketable equity investments and derivative instruments. See Note 6—Fair Value Measurements and Investments. Settlement receivable and payable . The Company operates systems for authorizing, clearing and settling payment transactions worldwide. Most U.S. dollar settlements with the Company’s financial institution clients are settled within the same day and do not result in a receivable or payable balance. Settlements in currencies other than the U.S. dollar generally remain outstanding for one to two business days, resulting in amounts due from and to clients. These amounts are presented as settlement receivable and settlement payable on the consolidated balance sheets. Customer collateral . The Company holds cash deposits and other non-cash assets from certain clients in order to ensure their performance of settlement obligations arising from Visa payment services are processed in accordance with the Company’s operating rules. The cash collateral assets are restricted and fully offset by corresponding liabilities and both balances are presented on the consolidated balance sheets. Pledged securities are held by a custodian in an account under the Company’s name and ownership; however, the Company does not have the right to repledge these securities, but may sell these securities in the event of default by the client on its settlement obligations. Letters of credit are provided primarily by client financial institutions to serve as irrevocable guarantees of payment. Guarantees are provided primarily by parent financial institutions to secure the obligations of their subsidiaries. The Company routinely evaluates the financial viability of institutions providing the letters of credit and guarantees. See Note 12—Settlement Guarantee Management. Guarantees and indemnifications . The Company recognizes an obligation at inception for guarantees and indemnifications that qualify for recognition, regardless of the probability of occurrence. The Company indemnifies its financial institution clients for settlement losses suffered due to the failure of any other client to fund its settlement obligations in accordance with the Visa operating rules. The estimated fair value of the liability for settlement indemnification is included in accrued liabilities on the consolidated balance sheets. Property, equipment and technology, net . Property, equipment and technology are recorded at historical cost less accumulated depreciation and amortization, which are computed on a straight-line basis over the asset’s estimated useful life. Depreciation and amortization of technology, furniture, fixtures and equipment are computed over estimated useful lives ranging from 2 to 10 years. Leasehold improvements are amortized over the shorter of the useful life of the asset or lease term. Building improvements are depreciated between 3 and 40 years, and buildings are depreciated over 40 years. Improvements that increase functionality of the asset are capitalized and depreciated over the asset’s remaining useful life. Land and construction-in-progress are not depreciated. Fully depreciated assets are retained in property, equipment and technology, net, until removed from service. Technology includes purchased and internally developed software, including technology assets obtained through acquisitions. Internally developed software represents software primarily used by the VisaNet electronic payments network. Internal and external costs incurred during the preliminary project stage are expensed as incurred. Qualifying costs incurred during the application development stage are capitalized. Once the project is substantially complete and ready for its intended use these costs are amortized on a straight-line basis over the technology’s estimated useful life. Acquired technology assets are initially recorded at fair value and amortized on a straight-line basis over the estimated useful life. The Company evaluates the recoverability of long-lived assets for impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If the sum of expected undiscounted net future cash flows is less than the carrying amount of an asset or asset group, an impairment loss is recognized to the extent that the carrying amount of the asset or asset group exceeds its fair value. See Note 7—Property, Equipment and Technology, Net . Leases . 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 on the consolidated balance sheets. 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 sheets. The Company’s lease cost consists of amounts recognized under lease agreements in the results of operations adjusted for impairment and sublease income. Intangible assets, net . The Company records identifiable intangible assets at fair value on the date of acquisition and evaluates the useful life of each asset. Finite-lived intangible assets primarily consist of customer relationships, reseller relationships and trade names obtained through acquisitions. Finite-lived intangible assets are amortized on a straight-line basis and are tested for recoverability if events or changes in circumstances indicate that their carrying amounts may not be recoverable. These intangibles have useful lives ranging from 3 to 15 years. No events or changes in circumstances indicate that impairment existed as of September 30, 2020. See Note 8—Intangible Assets and Goodwill . Indefinite-lived intangible assets consist of trade name, customer relationships and reacquired rights. Intangible assets with indefinite useful lives are not amortized but are evaluated for impairment annually or more frequently if events or changes in circumstances indicate that impairment may exist. The Company first assesses qualitative factors to determine whether it is necessary to perform a quantitative impairment test for indefinite-lived intangible assets. The Company assesses each category of indefinite-lived intangible assets for impairment on an aggregate basis, which may require the allocation of cash flows and/or an estimate of fair value to the assets or asset group. Impairment exists if the fair value of the indefinite-lived intangible asset is less than the carrying value. The Company relies on a number of factors when completing impairment assessments, including a review of discounted net future cash flows, business plans and the use of present value techniques. The Company completed its annual impairment review of indefinite-lived intangible assets as of February 1, 2020, and concluded there was no impairment as of that date. No recent events or changes in circumstances indicate that impairment of the Company’s indefinite-lived intangible assets existed as of September 30, 2020. Goodwill . Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Goodwill is not amortized but is evaluated for impairment at the reporting unit level annually or more frequently if events or changes in circumstances indicate that impairment may exist. The Company evaluated its goodwill for impairment as of February 1, 2020, and concluded there was no impairment as of that date. No recent events or changes in circumstances indicate that impairment existed as of September 30, 2020. Accrued litigation . The Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which it is a party and records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These judgments are subjective, based on the status of such legal or regulatory proceedings, the merits of the Company’s defenses and consultation with corporate and external legal counsel. Actual outcomes of these legal and regulatory proceedings may differ materially from the Company’s estimates. The Company expenses legal costs as incurred in professional fees in the consolidated statements of operations. See Note 20—Legal Matters. Revenue recognition . The Company adopted Accounting Standards Update (ASU) 2014-09 effective October 1, 2018 using the modified retrospective transition method. Results for reporting periods beginning after October 1, 2018 are presented under the new revenue standard. The comparative prior period amounts appearing on the financial statements have not been restated and continue to be reported under the prior revenue standard. The Company’s net revenues are comprised principally of the following categories: service revenues, data processing revenues, international transaction revenues and other revenues, reduced by client incentives. As a payment network service provider, the Company’s obligation to the customer is to stand ready to provide continuous access to our payment network over the contractual term. Consideration is variable based primarily upon the amount and type of transactions and payments volume on Visa’s products. The Company recognizes revenue, net of sales and other similar taxes, as the payment network services are performed in an amount that reflects the consideration the Company expects to receive in exchange for those services. Fixed fees for payment network services are generally recognized ratably over the related service period. The Company has elected the optional exemption to not disclose the remaining performance obligations related to payment network services and other performance obligations which are constrained by and dependent upon the future performance of its clients, which are variable in nature. The Company also recognizes revenues, net of sales and other similar taxes, from other value added services, including issuer and consumer solutions, merchant and acquirer solutions, fraud management and security services, data products, and consulting and analytics, as these value added services are performed. Service revenues consist mainly of revenues earned for services provided in support of client usage of Visa payment services. Current quarter service revenues are primarily assessed using a calculation of current quarter’s pricing applied to the prior quarter’s payments volume. The Company also earns revenues from assessments designed to support ongoing acceptance and volume growth initiatives, which are recognized in the same period the related volume is transacted. Data processing revenues consist of revenues earned for authorization, clearing, settlement, value added services, network access and other maintenance and support services that facilitate transaction and information processing among the Company’s clients globally. Data processing revenues are recognized in the same period the related transactions occur or services are performed. International transaction revenues are earned for cross-border transaction processing and currency conversion activities. Cross-border transactions arise when the country of origin of the issuer or financial institution originating the transaction is different from that of the beneficiary. International transaction revenues are recognized in the same period the cross-border transactions occur or services are performed. Other revenues consist mainly of value added services, license fees for use of the Visa brand or technology, fees for account holder services, certification, licensing and product enhancements, such as extended account holder protection and concierge services. Other revenues are recognized in the same period the related transactions occur or services are performed. Client incentives. The Company enters into long-term contracts with financial institution clients, merchants and strategic partners for various programs designed to increase revenue by growing payments volume, increasing Visa product acceptance, winning merchant routing transactions over to Visa’s network and driving innovation. These incentives are primarily accounted for as reductions to revenues. Client incentives are accounted for as operating expenses if the payment is in exchange for a distinct good or service provided by the customer. The Company generally capitalizes upfront and fixed incentive payments under these agreements and amortizes the amounts as a reduction to revenues ratably over the contractual term. Incentives that are earned by the customer based on performance targets are recorded as reductions to revenues based on management's estimate of each client's future performance. These accruals are regularly reviewed and estimates of performance are adjusted, as appropriate, based on changes in performance expectations, actual client performance, amendments to existing contracts or the execution of new contracts. Marketing. The Company expenses costs for the production of advertising as incurred. The cost of media advertising is expensed when the advertising takes place. Sponsorship costs are recognized over the period in which the Company benefits from the sponsorship rights. Promotional items are expensed as incurred, when the related services are received, or when the related event occurs. Income taxes . The Company’s income tax expense consists of two components: current and deferred. Current income tax expense represents taxes paid or payable for the current period. Deferred tax assets and liabilities are recognized to reflect the future tax consequences attributable to temporary differences between the financial statement carrying amounts and the respective tax basis of existing assets and liabilities, and operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing whether deferred tax assets are realizable, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. A valuation allowance is recorded for the portions that are not expected to be realized based on the level of historical taxable income, projections of future taxable income over the periods in which the temporary differences are deductible, and qualifying tax planning strategies. Where interpretation of the tax law may be uncertain, the Company recognizes, measures and discloses income tax uncertainties. The Company accounts for interest expense and penalties related to uncertain tax positions in non-operating income (expense) in the consolidated statements of operations. The Company files a consolidated federal income tax return and, in certain states, combined state tax returns. The Company elects to claim foreign tax credits in any given year if such election is beneficial to the Company. See Note 19—Income Taxes . Pension and other postretirement benefit plans . The Company’s defined benefit pension and other postretirement benefit plans are actuarially evaluated, incorporating various critical assumptions including the discount rate and the expected rate of return on plan assets (for qualified pension plans). The discount rate is based on a cash flow matching analysis, with the projected benefit payments matching spot rates from a yield curve developed from high-quality corporate bonds. The expected rate of return on pension plan assets is primarily based on the targeted allocation, and evaluated for reasonableness by considering such factors as: (i) actual return on plan assets; (ii) historical rates of return on various asset classes in the portfolio; (iii) projections of returns on various asset classes; and (iv) current and prospective capital market conditions and economic forecasts. Any difference between actual and expected plan experience, including asset return experience, in excess of a 10% corridor is recognized in net periodic pension cost over the expected average employee future service period, which ranges from approximately 6 to 10 years for the U.S. and non-U.S. pension plans. Other assumptions involve demographic factors such as retirement age, mortality, attrition and the rate of compensation increases. The Company evaluates assumptions annually and modifies them as appropriate. The Company recognizes settlement losses when it settles pension benefit obligations, including making lump-sum cash payments to plan participants in exchange for their rights to receive specified pension benefits, when certain thresholds are met. See Note 11—Pension and Other Postretirement Benefits . Foreign currency remeasurement and translation . The Company’s functional currency is the U.S. dollar for the majority of its foreign operations except for Visa Europe whose functional currency is the euro. Transactions denominated in currencies other than the applicable functional currency are converted to the functional currency at the exchange rate on the transaction date. At period end, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet dates. Non-monetary assets and liabilities are remeasured at historical exchange rates. Resulting foreign currency transaction gains and losses related to conversion and remeasurement are recorded in general and administrative expense in the consolidated statements of operations and were not material for fiscal 2020, 2019 and 2018. Where a non-U.S. currency is the functional currency, translation from that functional currency to the U.S. dollar is performed for balance sheet accounts using exchange rates in effect at the balance sheet dates and for revenue and expense accounts using an average exchange rate for the period. Resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets. Derivative financial instruments . The Company uses foreign exchange forward derivative contracts to reduce its exposure to foreign currency rate changes on forecasted non-functional currency denominated operational cash flows. The terms of these derivative contracts designated as cash flow hedges are generally less than 12 months. To qualify for cash flow hedge accounting treatment, the Company formally documents, at inception of the hedge, all relationships between the hedging transactions and the hedged items, as well as the Company’s risk management objective and strategy for undertaking various hedging transactions. The Company also formally assesses whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items and whether those derivatives may be expected to remain highly effective in future periods. Derivatives are carried at fair value on a gross basis on the consolidated balance sheets. Gains and losses resulting from changes in fair value of derivative instruments designated as cash flow hedges are accounted for either in accumulated other comprehensive income (loss) on the consolidated balance sheets, or in the consolidated statements of operations in the corresponding account where revenue or expense is recorded. Gains and losses resulting from changes in fair value of derivative instruments not designated for hedge accounting are recorded in general and administrative expense for hedges of operating activity, or non-operating income (expense) for hedges of non-operating activity. Gains and losses related to changes in fair value hedges are recognized in non-operating income (expense) along with a corresponding loss or gain related to the change in value of the underlying hedged item in the same line item in the consolidated statement of operations. The change in value of net investment hedges are recorded in other comprehensive income (loss). Amounts excluded from the effectiveness testing of net investment hedges are recognized in non-operating income (expense). Cash flows associated with derivatives designated as a fair value hedge may be included in operating, investing or financing activities on the consolidated statement of cash flows, depending on the classification of the items being hedged. Cash flows associated with financial instruments designated as net investment hedges are classified as an investing activity. See Note 13—Derivative Financial Instruments . Share-based compensation . The Company recognizes share-based compensation cost, net of estimated forfeitures, using the fair value method of accounting. The Company recognizes compensation cost for awards with only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period. Compensation cost for performance-based awards is recognized on a graded-vesting basis. The amount is initially estimated based on target performance and is adjusted as appropriate based on management’s best estimate throughout the performance period. See Note 17—Share-based Compensation. Earnings per share . The Company calculates earnings per share using the two-class method to reflect the different rights of each class and series of outstanding common stock. The dilutive effect of incremental common stock equivalents is reflected in diluted earnings per share by application of the treasury stock method. See Note 16—Earnings Per Share. Recently Issued 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 lease standard that address the transition methods available and clarify the guidance for lessor costs a |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2—Acquisitions Pending Acquisition. 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 regulatory reviews and approvals. On November 5, 2020, the U.S. Department of Justice filed a complaint in the U.S. District Court for the Northern District of California seeking a permanent injunction to prevent Visa from acquiring Plaid. See Note 20—Legal Matters . Fiscal 2019 Acquisitions. The Company acquired several businesses for a total purchase consideration of $942 million, which consisted of $888 million in cash and $54 million of deferred cash consideration. The allocation of the purchase price to the tangible and intangible assets acquired and to liabilities have been completed as of September 30, 2020. There were no material adjustments to the preliminary purchase price allocation as of September 30, 2019. Goodwill was recorded to reflect the excess purchase consideration over net assets acquired, which represents the value that is expected from expanding the Company’s product offerings and other synergies. Goodwill that is expected to be deductible for tax purposes amounts to approximately $360 million. The following table summarizes the purchase price allocation in aggregate for the businesses acquired: Purchase Price Allocation (in millions) Net tangible assets acquired (liabilities assumed) $ 23 Intangible assets 319 Goodwill 647 Total (1) $ 989 (1) Includes fair value of previously-held interest in the acquired entities of $47 million. The following table summarizes the identified intangible assets acquired based on the purchase price allocations: Acquisition Date Fair Value Weighted-Average Useful Life (in millions) (in years) Developed technologies $ 70 4 Customer relationships 249 12 Total $ 319 10 Pro forma information related to the acquisitions has not been presented as the impact was not material to the Company’s financial results. Transaction costs incurred were not material and were included in the Company’s consolidated statements of operations. |
Revenues
Revenues | 12 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Note 3—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 years ended September 30, 2020, 2019, and 2018: For the Years Ended 2020 2019 2018 (in millions) Service revenues $ 9,804 $ 9,700 $ 8,918 Data processing revenues 10,975 10,333 9,027 International transaction revenues 6,299 7,804 7,211 Other revenues 1,432 1,313 944 Client incentives (6,664) (6,173) (5,491) Net revenues $ 21,846 $ 22,977 $ 20,609 For the Years Ended September 30, 2020 2019 2018 (in millions) U.S. $ 10,125 $ 10,279 $ 9,332 International 11,721 12,698 11,277 Net revenues $ 21,846 $ 22,977 $ 20,609 Remaining performance obligations are comprised of deferred revenue and unbilled contract revenues that will be invoiced and recognized as revenues in future periods primarily related to value added services. As of September 30, 2020, the remaining performance obligations were $1.4 billion. The Company expects approximately half to be recognized as revenue in the next two years and the remaining thereafter. However, the amount and timing of revenue recognition is affected by several factors, including contract modifications and terminations, which could impact the estimate of amounts allocated to remaining performance obligations and when such revenues could be recognized. |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 12 Months Ended |
Sep. 30, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Note 4—Cash, Cash Equivalents, Restricted Cash and Restricted 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: September 30, 2020 2019 2018 (in millions) Cash and cash equivalents $ 16,289 $ 7,838 $ 8,162 Restricted cash and restricted cash equivalents: U.S. litigation escrow 901 1,205 1,491 Customer collateral 1,850 1,648 1,324 Prepaid expenses and other current assets 131 141 — Cash, cash equivalents, restricted cash and restricted cash equivalents $ 19,171 $ 10,832 $ 10,977 |
U.S. and Europe Retrospective R
U.S. and Europe Retrospective Responsibility Plans | 12 Months Ended |
Sep. 30, 2020 | |
Retrospective Responsibility Plan [Abstract] | |
U.S. and Europe Retrospective Responsibility Plans | Note 5—U.S. and Europe Retrospective Responsibility Plans U.S. Retrospective Responsibility Plan The Company has established several related mechanisms designed to address potential liability under certain litigation referred to as the “U.S. covered litigation.” These mechanisms are included in and referred to as the U.S. retrospective responsibility plan and consist of a U.S. litigation escrow agreement, the conversion feature of the Company’s shares of class B common stock, the indemnification obligations of the Visa U.S.A. members, an interchange judgment sharing agreement, a loss sharing agreement and an omnibus agreement, as amended. U.S. covered litigation consists of a number of matters that have been settled or otherwise fully or substantially resolved, as well as the following: • the Interchange Multidistrict Litigation . In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, 1:05-md-01720-JG-JO (E.D.N.Y.) or MDL 1720, including all cases currently included in MDL 1720, any other case that includes claims for damages relating to the period prior to the Company’s IPO that has been or is transferred for coordinated or consolidated pre-trial proceedings at any time to MDL 1720 by the Judicial Panel on Multidistrict Litigation or otherwise included at any time in MDL 1720 by order of any court of competent jurisdiction; • any claim that challenges the reorganization or the consummation thereof; provided that such claim is transferred for coordinated or consolidated pre-trial proceedings at any time to MDL 1720 by the Judicial Panel on Multidistrict Litigation or otherwise included at any time in MDL 1720 by order of any court of competent jurisdiction; and • any case brought after October 22, 2015 by a merchant that opted out of the Rule 23(b)(3) settlement class in MDL 1720 that arises out of facts or circumstances substantially similar to those alleged in MDL 1720 and that is not transferred to or otherwise included in MDL 1720. See Note 20—Legal Matters . U.S. litigation escrow agreement. In accordance with the U.S. litigation escrow agreement, the Company maintains an escrow account, from which settlements of, or judgments in, the U.S. covered litigation are paid. The amount of the escrow is determined by the board of directors and the Company’s litigation committee, all members of which are affiliated with, or act for, certain Visa U.S.A. members. The escrow funds are held in money market investments along with the interest earned, less applicable taxes and are classified as restricted cash equivalents on the consolidated balance sheets. The following table sets forth the changes in the restricted cash equivalents—U.S. litigation escrow account by fiscal year: 2020 2019 (in millions) Balance at beginning of period $ 1,205 $ 1,491 Return of takedown payment to the litigation escrow account 467 — Deposits into the litigation escrow account — 300 Payments to class plaintiffs’ settlement fund (1) — (600) Payments to opt-out merchants (1) and interest earned on escrow funds (771) 14 Balance at end of period $ 901 $ 1,205 (1) These payments are associated with the interchange multidistrict litigation. See Note 20—Legal Matters . The accrual related to the U.S. covered litigation could be either higher or lower than the U.S. litigation escrow account balance. A takedown payment of approximately $467 million was received 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 fiscal 2020. The Company recorded an accrual of $370 million for the U.S. covered litigation during fiscal 2019. See Note 20—Legal Matters . Conversion feature. Under the terms of the plan, when the Company funds the U.S. litigation escrow account, the shares of class B common stock are subject to dilution through an adjustment to the conversion rate of the shares of class B common stock to shares of class A common stock. This has the same economic effect on diluted class A common stock earnings per share as repurchasing the Company’s class A common stock, because it reduces the class B conversion rate and consequently the as-converted class A common stock share count. See Note 15—Stockholders’ Equity . Indemnification obligations . To the extent that amounts available under the U.S. litigation escrow arrangement and other agreements in the plan are insufficient to fully resolve the U.S. covered litigation, the Company will use commercially reasonable efforts to enforce the indemnification obligations of Visa U.S.A.’s members for such excess amounts, including but not limited to enforcing indemnification obligations pursuant to Visa U.S.A.’s certificate of incorporation and bylaws and in accordance with their membership agreements. Interchange judgment sharing agreement. Visa U.S.A. and Visa International have entered into an interchange judgment sharing agreement with certain Visa U.S.A. members that have been named as defendants in the interchange multidistrict litigation, which is described in Note 20—Legal Matters . Under this judgment sharing agreement, Visa U.S.A. members that are signatories will pay their membership proportion of the amount of a final judgment not allocated to the conduct of Mastercard. Loss sharing agreement. Visa has entered into a loss sharing agreement with Visa U.S.A., Visa International and certain Visa U.S.A. members. The loss sharing agreement provides for the indemnification of Visa U.S.A., Visa International and, in certain circumstances, Visa with respect to: (i) the amount of a final judgment paid by Visa U.S.A. or Visa International in the U.S. covered litigation after the operation of the interchange judgment sharing agreement, plus any amounts reimbursable to the interchange judgment sharing agreement signatories; or (ii) the damages portion of a settlement of a U.S. covered litigation that is approved as required under Visa U.S.A.’s certificate of incorporation by the vote of Visa U.S.A.’s specified voting members. The several obligation of each bank that is a party to the loss sharing agreement will equal the amount of any final judgment enforceable against Visa U.S.A., Visa International or any other signatory to the interchange judgment sharing agreement, or the amount of any approved settlement of a U.S. covered litigation, multiplied by such bank’s then-current membership proportion as calculated in accordance with Visa U.S.A.’s certificate of incorporation. On October 22, 2015, Visa entered into an amendment to the loss sharing agreement. The amendment includes within the scope of U.S. covered litigation any action brought after the amendment by an opt-out from the Rule 23(b)(3) Settlement Class in MDL 1720 that arises out of facts or circumstances substantially similar to those alleged in MDL 1720 and that is not transferred to or otherwise included in MDL 1720. On the same date, Visa entered into amendments to the interchange judgment sharing agreement and omnibus agreement that include any such action within the scope of those agreements as well. Omnibus agreement. Visa entered into an omnibus agreement with Mastercard and certain Visa U.S.A. members that confirmed and memorialized the signatories’ intentions with respect to the loss sharing agreement, the interchange judgment sharing agreement and other agreements relating to the interchange multidistrict litigation, see Note 20—Legal Matters. Under the omnibus agreement, the monetary portion of any settlement of the interchange multidistrict litigation covered by the omnibus agreement would be divided into a Mastercard portion at 33.3333% and a Visa portion at 66.6667%. In addition, the monetary portion of any judgment assigned to Visa-related claims in accordance with the omnibus agreement would be treated as a Visa portion. Visa would have no liability for the monetary portion of any judgment assigned to Mastercard-related claims in accordance with the omnibus agreement, and if a judgment is not assigned to Visa-related claims or Mastercard-related claims in accordance with the omnibus agreement, then any monetary liability would be divided into a Mastercard portion at 33.3333% and a Visa portion at 66.6667%. The Visa portion of a settlement or judgment covered by the omnibus agreement would be allocated in accordance with specified provisions of the Company’s U.S. retrospective responsibility plan. The litigation provision on the consolidated statements of operations was not impacted by the execution of the omnibus agreement. On August 26, 2014, Visa entered into an amendment to the omnibus agreement. The omnibus amendment makes applicable to certain settlements in opt-out cases in the interchange multidistrict litigation the settlement-sharing provisions of the omnibus agreement, pursuant to which the monetary portion of any settlement of the interchange multidistrict litigation covered by the omnibus agreement would be divided into a Mastercard portion at 33.3333% and a Visa portion at 66.6667%. The omnibus amendment also provides that in the event of termination of the class settlement agreement, Visa and Mastercard would make mutually acceptable arrangements so that Visa shall have received two-thirds and Mastercard shall have received one-third of the total of (i) the sums paid to defendants as a result of the termination of the settlement agreement and (ii) the takedown payments previously made to defendants. Europe Retrospective Responsibility Plan UK loss sharing agreement. The Company has entered into a loss sharing agreement with Visa Europe and certain of Visa Europe’s member financial institutions located in the United Kingdom (the “UK LSA members”). Each of the UK LSA members has agreed, on a several and not joint basis, to compensate the Company for certain losses which may be incurred by the Company, Visa Europe or their affiliates as a result of certain existing and potential litigation relating to the setting and implementation of domestic multilateral interchange fee rates in the United Kingdom prior to the closing of the Visa Europe acquisition (the “Closing”), subject to the terms and conditions set forth therein and, with respect to each UK LSA member, up to a maximum amount of the up-front cash consideration received by such UK LSA member. The UK LSA members’ obligations under the UK loss sharing agreement are conditional upon, among other things, either (a) losses valued in excess of the sterling equivalent on June 21, 2016 of €1.0 billion having arisen in UK covered claims (and such losses having reduced the conversion rate of the UK&I preferred stock accordingly), or (b) the conversion rate of the UK&I preferred stock having been reduced to zero pursuant to losses arising in claims relating to multilateral interchange fee rate setting in the Visa Europe territory. Litigation management deed. The Company has entered into a litigation management deed with Visa Europe which sets forth the agreed upon procedures for the management of the VE territory covered litigation, the allocation of losses resulting from this litigation (the “VE territory covered losses”) between the UK&I and Europe preferred stock, and any accelerated conversion or reduction in the conversion rate of the shares of UK&I and Europe preferred stock. The litigation management deed applies only to VE territory covered litigation (and resultant losses and liabilities). The litigation management deed provides that the Company will generally control the conduct of the VE territory covered litigation, subject to certain obligations to report and consult with the litigation management committees for VE territory covered litigation (the “VE territory litigation management committees”). The VE territory litigation management committees, which are composed of representatives of certain Visa Europe members, have also been granted consent rights to approve certain material decisions in relation to the VE territory covered litigation. The Company obtained certain protections for VE territory covered losses through the UK&I and Europe preferred stock, the UK loss sharing agreement, and the litigation management deed, referred to as the “Europe retrospective responsibility plan.” The plan covers VE territory covered litigation (and resultant liabilities and losses) relating to the covered period, which generally refers to the period before the Closing. Visa’s protection from the plan is further limited to 70% of any liabilities where the claim relates to inter-regional multilateral interchange fee rates where the issuer is located outside the Visa Europe territory, and the merchant is located within the Visa Europe territory. The plan does not protect the Company in Europe against all types of litigation or remedies or fines imposed in competition law enforcement proceedings, only the interchange litigation specifically covered by the plan’s terms. 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 a periodic adjustment to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. The total amount of protection available through the preferred stock component of the Europe retrospective responsibility plan is equivalent to the as-converted value of the preferred stock, which can be calculated at any point in time as the product of: (a) the outstanding number of shares of preferred stock; (b) the current conversion rate applicable to each class of preferred stock; and (c) Visa’s class A common stock price. This amount differs from the value of the preferred stock recorded within stockholders’ equity on the Company’s consolidated balance sheets. The book value of the preferred stock reflects its historical value recorded at the Closing less VE territory covered losses recovered through a reduction of the applicable conversion rate. The book value does not reflect changes in the underlying class A common stock price subsequent to the Closing. Visa Inc. net income will not be impacted by VE territory covered losses as long as the as-converted value of the preferred stock is greater than the covered loss. VE territory covered losses will be recorded when the loss is deemed to be probable and reasonably estimable, or in the case of attorney’s fees, when incurred. Concurrently, the Company will record a reduction to stockholders’ equity, which represents the Company’s right to recover such losses through adjustments to the conversion rate applicable to the preferred stock. The reduction to stockholders’ equity is recorded in a contra-equity account referred to as “right to recover for covered losses.” As required by the litigation management deed, at the fourth anniversary of the Visa Europe acquisition, Visa, in consultation with the VE territories litigation management committee, carried out a release assessment of the extent to which, if at all, it would be appropriate to effect a partial conversion of UK&I or Europe preferred stock into class A common stock or series A preferred stock. After the completion of this assessment, in September 2020, the Company released $7.3 billion of the as-converted value from its UK&I and Europe preferred stock and issued 374,819 shares of series A preferred stock (the “Fourth anniversary release”). Each holder of a share of UK&I and Europe preferred stock received a number of series A preferred stock equal to the applicable conversion adjustment divided by 100. The Company paid $5 million in cash in lieu of issuing fractional shares of series A preferred stock. The release resulted in a downward adjustment to the UK&I and Europe preferred stock conversion rates. See Note 15—Stockholders’ Equity. VE territory covered losses may be recorded 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 will then be recorded against the book value of the preferred stock within stockholders’ equity. During the year ended September 30, 2020, the Company recovered $164 million of VE territory covered losses through adjustments to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. The following table sets forth the activities related to VE territory covered losses in preferred stock and “right to recover for covered losses” within stockholders’ equity during the year ended September 30, 2020: Preferred Stock Right to Recover for Covered Losses UK&I Europe (in millions) Balance as of September 30, 2019 $ 2,285 $ 3,177 $ (171) VE territory covered losses incurred (1) — — (37) Recovery through conversion rate adjustment (2) (72) (92) 169 Fourth anniversary release (1,107) (1,542) — Balance as of September 30, 2020 $ 1,106 $ 1,543 $ (39) (1) VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 20—Legal Matters . (2) Adjustment to right to recover for covered losses for the conversion rate adjustment differs from the actual recovered amount due to differences in foreign exchange rates between the time the losses were incurred and the subsequent recovery through the conversion rate adjustment. 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 September 30, 2020 and 2019: September 30, 2020 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 $ 3,168 $ 1,106 $ 5,519 $ 2,285 Europe preferred stock 4,331 1,543 7,539 3,177 Total 7,499 2,649 13,058 5,462 Less: right to recover for covered losses (39) (39) (171) (171) Total recovery for covered losses available $ 7,460 $ 2,610 $ 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 September 30, 2020; (b) 6.387 and 6.861, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2020; and (c) $199.97, Visa’s class A common stock closing stock price as of September 30, 2020. (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 outstanding, respectively, as of September 30, 2019; 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 | 12 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Investments | Note 6—Fair Value Measurements and Investments The Company measures certain assets and liabilities at fair value. See Note 1—Summary of Significant Accounting Policies . Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair Value Measurements at September 30 Level 1 Level 2 2020 2019 2020 2019 (in millions) Assets Cash equivalents and restricted cash equivalents: Money market funds $ 12,522 $ 6,494 $ — $ — U.S. government-sponsored debt securities — — 1,469 150 U.S. Treasury securities 650 — — — Investment securities: Marketable equity securities 148 126 — — U.S. government-sponsored debt securities — — 2,582 5,592 U.S. Treasury securities 1,253 675 — — Other current and non-current assets: Derivative instruments — — 512 437 Total $ 14,573 $ 7,295 $ 4,563 $ 6,179 Liabilities Accrued compensation and benefits: Deferred compensation liability $ 135 $ 113 $ — $ — Accrued and other liabilities: Derivative instruments — — 181 52 Total $ 135 $ 113 $ 181 $ 52 Level 1 assets and liabilities. 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 unadjusted quoted prices in active markets for identical assets and liabilities. 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 . Derivative instruments are v alued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. U.S. government-sponsored debt securities and U.S. Treasury securities. The amortized cost, unrealized gains and losses and fair value of debt securities were as follows: September 30, 2020 2019 Amortized Gross Unrealized Fair Amortized Gross Unrealized Fair Gains Losses Gains Losses (in millions) U.S. government-sponsored debt securities $ 2,581 $ 1 $ — $ 2,582 $ 5,590 $ 4 $ (2) $ 5,592 U.S. Treasury securities 1,251 2 — 1,253 672 3 — 675 Total $ 3,832 $ 3 $ — $ 3,835 $ 6,262 $ 7 $ (2) $ 6,267 Less: current portion $ (3,604) $ (4,110) Long-term debt securities $ 231 $ 2,157 Debt securities are presented below in accordance with their stated maturities. A portion of these investments are classified as non-current as they have stated maturities of more than one year from the balance sheet date. However, these investments are generally available to meet short-term liquidity needs. September 30, (in millions) Due within one year $ 3,604 Due after 1 year through 5 years 231 Total $ 3,835 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 fiscal 2020 and 2019, $102 million and $110 million of upward adjustments, and $6 million and $4 million of downward adjustments including impairment, respectively, were included in the carrying value of non-marketable equity securities accounted for under the fair value measurement alternative. The following table summarizes the total carrying value of the Company’s non-marketable equity securities held as of September 30, 2020 including cumulative unrealized gains and losses: September 30, (in millions) Initial cost basis $ 841 Adjustments: Upward adjustments 212 Downward adjustments (including impairment) (11) Carrying amount, end of period $ 1,042 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, trade names and reseller relationships, all of which were obtained through acquisitions. See Note 8—Intangible Assets and Goodwill. 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, 2020, and concluded that there was no impairment. No recent events or changes in circumstances indicate that impairment existed at September 30, 2020. See Note 1—Summary of Significant Accounting Policies . Investment Income Investment income is recorded as non-operating income (expense) in the Company’s consolidated statements of operations and consisted of the following: For the Years Ended 2020 2019 2018 (in millions) Interest and dividend income on cash and investments $ 80 $ 247 $ 173 Realized gains (losses), net on debt securities 4 1 — Equity securities: Unrealized gains (losses), net 115 117 2 Realized gains (losses), net from donation — — 193 Realized gains (losses), net 1 18 102 Investment income $ 200 $ 383 $ 470 Other Fair Value Disclosures 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. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. As of September 30, 2020, the carrying value and estimated fair value of debt was $24.1 billion and $26.6 billion, respectively. As of September 30, 2019, the carrying value and estimated fair value of debt was $16.7 billion and $18.4 billion, respectively. Other Financial Instruments not Measured at Fair Value. The following financial i nstruments are not measured at fair value on the Company’s consolidated balance sheet at September 30, 2020, but require disclosure of their fair values: se ttlement receivable and payabl e and customer collateral. The estimated fair value of such instruments at September 30, 2020 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. |
Property, Equipment and Technol
Property, Equipment and Technology, Net | 12 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Technology, Net | Note 7—Property, Equipment and Technology, Net Property, equipment and technology, net, consisted of the following: September 30, 2020 2019 (in millions) Land $ 71 $ 71 Buildings and building improvements 1,007 965 Furniture, equipment and leasehold improvements 1,997 1,913 Construction-in-progress 163 180 Technology 3,923 3,441 Total property, equipment and technology 7,161 6,570 Accumulated depreciation and amortization (4,424) (3,875) Property, equipment and technology, net $ 2,737 $ 2,695 Technology consists of both purchased and internally developed software. Internally developed software primarily represents software utilized by the VisaNet electronic payments network. At September 30, 2020 and 2019, accumulated amortization for technology was $2.7 billion and $2.3 billion, respectively. At September 30, 2020, estimated future amortization expense on technology is as follows: For the Years Ending September 30, 2021 2022 2023 2024 2025 Thereafter Total (in millions) Estimated future amortization expense $ 419 $ 313 $ 225 $ 142 $ 62 $ 24 $ 1,185 For fiscal 2020, 2019 and 2018, depreciation and amortization expense related to property, equipment and technology was $687 million, $596 million and $558 million, respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Note 8—Intangible Assets and Goodwill Indefinite-lived and finite-lived intangible assets consisted of the following: September 30, 2020 2019 Gross Accumulated Net Gross Accumulated Net (in millions) Finite-lived intangible assets: Customer relationships $ 709 $ (376) $ 333 $ 701 $ (314) $ 387 Trade names 199 (134) 65 199 (120) 79 Reseller relationships 95 (89) 6 95 (86) 9 Other 17 (14) 3 17 (13) 4 Total finite-lived intangible assets 1,020 (613) 407 1,012 (533) 479 Indefinite-lived intangible assets: Customer relationships and reacquired rights 23,317 — 23,317 22,217 — 22,217 Visa trade name 4,084 — 4,084 4,084 — 4,084 Total indefinite-lived intangible assets 27,401 — 27,401 26,301 — 26,301 Total intangible assets $ 28,421 $ (613) $ 27,808 $ 27,313 $ (533) $ 26,780 For fiscal 2020, 2019 and 2018, amortization expense related to finite-lived intangible assets was $80 million, $60 million and $55 million, respectively. At September 30, 2020, estimated future amortization expense on finite-lived intangible assets is as follows: For the Years Ending September 30, 2021 2022 2023 2024 2025 Thereafter Total (in millions) Estimated future amortization expense $ 81 $ 76 $ 52 $ 50 $ 40 $ 108 $ 407 The change in goodwill during the years ended September 30, 2020 and 2019 are as follows: 2020 2019 (in millions) Goodwill, beginning of period $ 15,656 $ 15,194 Goodwill from acquisitions, net of adjustments 48 643 Foreign currency translation 206 (181) Goodwill, end of period $ 15,910 $ 15,656 For additional information on acquisitions, see Note 2—Acquisitions. There was no impairment related to the Company’s finite-lived or indefinite-lived intangible assets (including goodwill) during fiscal 2020, 2019 or 2018. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 9—Leases The Company entered into various operating lease agreements primarily for real estate. The Company's leases have original lease periods expiring between fiscal 2021 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 September 30, 2020, the Company had no finance leases. During fiscal 2020, total operating lease cost was $114 million. At September 30, 2020, the weighted-average remaining lease term for operating leases was approximately 6 years and the weighted-average discount rate for operating leases was 2.29%. At September 30, 2020, the present value of future minimum lease payments was as follows: September 30, (in millions) 2021 $ 108 2022 103 2023 95 2024 82 2025 70 Thereafter 163 Total undiscounted lease payments 621 Less: imputed interest (51) Present value of lease liabilities $ 570 At September 30, 2020, the Company had additional operating leases that had not yet commenced with lease obligations of $466 million. These operating leases will commence between fiscal 2021 and 2023 with non-cancellable lease terms of 1 to 15 years. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 10—Debt The Company had outstanding debt as follows: September 30, 2020 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 % 1.90% Senior Notes due April 2027 1,500 — 2.02 % 0.75% Senior Notes due August 2027 500 — 0.84 % 2.75% Senior Notes due September 2027 750 750 2.91 % 2.05% Senior Notes due April 2030 1,500 — 2.13 % 1.10% Senior Notes due February 2031 1,000 — 1.20 % 4.15% Senior Notes due December 2035 1,500 1,500 4.23 % 2.70% Senior Notes due April 2040 1,000 — 2.80 % 4.30% Senior Notes due December 2045 3,500 3,500 4.37 % 3.65% Senior Notes due September 2047 750 750 3.73 % 2.00% Senior Notes due August 2050 1,750 — 2.09 % Total debt 24,000 16,750 Unamortized discounts and debt issuance costs (178) (108) Hedge accounting fair value adjustments (2) 248 87 Total carrying value of debt $ 24,070 $ 16,729 Reported as: Current maturities of debt $ 2,999 $ — Long-term debt 21,071 16,729 Total carrying value of debt $ 24,070 $ 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. See Note 1—Summary of Significant Accounting Policies and Note 13—Derivative Financial Instruments . Senior Notes The Company’s outstanding senior notes, or collectively, the “Notes”, are senior unsecured obligations of the Company, ranking equally and ratably among themselves and with the Company’s existing and future unsecured and unsubordinated debt. The Notes are not secured by any assets of the Company and are not guaranteed by any of the Company’s subsidiaries. The Company was in compliance with all related covenants as of September 30, 2020. Each series of Notes may be redeemed as a whole or in part at the Company’s option at any time at specified redemption prices. In August 2020, the Company issued fixed-rate senior notes in a public offering in an aggregate principal amount of $3.3 billion with maturities of 7, 10 and a half and 30 years. The August 2027 Notes, 2031 Notes and 2050 Notes, or collectively, the “August 2020 Notes”, have interest rates of 0.75%, 1.10% and 2.00%, respectively. Interest on the August 2020 Notes is payable semi-annually on February 15 and August 15 of each year, commencing on February 15, 2021. The net aggregate proceeds, after deducting discounts and debt issuance costs, were approximately $3.2 billion. The net proceeds from the offering of the August 2027 Notes will be used to fund eligible green projects and the net proceeds from the offering of the 2031 Notes and 2050 Notes will be used for general corporate purposes. In April 2020, the Company issued fixed-rate senior notes in a public offering in an aggregate principal amount of $4.0 billion with maturities of 7, 10 and 20 years. The April 2027 Notes, 2030 Notes and 2040 Notes, or collectively, the “April 2020 Notes”, have interest rates of 1.90%, 2.05% and 2.70%, respectively. Interest on the April 2020 Notes is payable semi-annually on April 15 and October 15 of each year, commencing October 15, 2020. The net aggregate proceeds, after deducting discounts and debt issuance costs, were approximately $4.0 billion. The net proceeds from the offering of the April 2020 Notes will be used for general corporate purposes. Commercial Paper Program Visa maintains a commercial paper program to support its working capital requirements and for other general corporate purposes. Under the program, the Company is authorized to issue up to $3.0 billion in outstanding notes, with maturities up to 397 days from the date of issuance. The Company had no outstanding obligations under the program as of September 30, 2020 and 2019. Credit Facility On July 25, 2019, the Company entered into an amended and restated credit agreement for a 5 year, unsecured $5.0 billion revolving credit facility (the "Credit Facility"), which will expire on July 25, 2024. The Credit Facility is not governed by any financial covenants. This Credit Facility is maintained to ensure the integrity of the payment card settlement process and for general corporate purposes. Interest on borrowings under the Credit Facility will be charged at the London Interbank Offered Rate or an alternative base rate, in each case plus applicable margins that fluctuate based on the applicable credit rating of the Company's senior unsecured long-term debt. The Company has agreed to pay a commitment fee which will fluctuate based on such applicable rating of the Company. The Company had no amounts outstanding under the Credit Facility as of September 30, 2020 and 2019. At September 30, 2020, future principal payments on the Company’s outstanding debt were as follows: For the Years Ending September 30, 2021 2022 2023 2024 2025 Thereafter Total (in millions) Future principal payments $ 3,000 $ 1,000 $ 2,250 $ — $ — $ 17,750 $ 24,000 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Note 11—Pension and Other Postretirement Benefits The Company sponsors various qualified and non-qualified defined benefit pension and other postretirement benefit plans that provide for retirement and medical benefits for all eligible employees residing in the U.S. The Company also sponsors other pension benefit plans that provide benefits for internationally-based employees at certain non-U.S. locations. Disclosures presented below include the U.S. pension plans and the non-U.S. plans, comprising only the Visa Europe plans. Disclosures relating to other U.S. postretirement benefit plans and other non-U.S. pension benefit plans are not included as they are immaterial, individually and in aggregate. The Company uses a September 30 measurement date for its pension and other postretirement benefit plans. Defined benefit pension plans. The U.S. pension benefits under the defined benefit pension plan were earned based on a cash balance formula. An employee’s cash balance account was credited with an amount equal to 6% of eligible compensation plus interest based on 30-year Treasury securities. In October 2015, the Company’s board of directors approved an amendment of the U.S. qualified defined benefit pension plan such that the Company discontinued employer provided credits after December 31, 2015. Plan participants continue to earn interest credits on existing balances at the time of the freeze. The funding policy for the U.S. pension benefits is to contribute annually no less than the minimum required contribution under ERISA. Under the Visa Europe plans, retirement benefits are provided based on the participants’ final pensionable pay and are currently closed to new entrants. However, future benefits continue to accrue for active participants. The funding policy is to contribute in accordance with the appropriate funding requirements agreed with the trustees of the UK pension plans. Additional funding amounts may be agreed to with the UK pension plan trustees. Summary of Plan Activities A reconciliation of pension benefit obligations, plan assets, funded status and amounts recognized in the Company’s consolidated balance sheets were as follows: U.S. Plans Non-U.S. Plans September 30, September 30, 2020 2019 2020 2019 (in millions) Change in pension benefit obligation: Benefit obligation at beginning of period $ 919 $ 844 $ 528 $ 452 Service cost — — 4 4 Interest cost 28 32 10 13 Actuarial loss (gain) 37 95 11 109 Benefit payments (64) (52) (17) (22) Plan amendment — — — 1 Foreign currency exchange rate changes — — 27 (29) Benefit obligation at end of period $ 920 $ 919 $ 563 $ 528 Accumulated benefit obligation $ 920 $ 919 $ 563 $ 528 Change in plan assets: Fair value of plan assets at beginning of period $ 1,090 $ 1,090 $ 490 $ 436 Actual return on plan assets 114 52 5 93 Company contribution 2 — 22 10 Benefit payments (64) (52) (17) (22) Foreign currency exchange rate changes — — 25 (27) Fair value of plan assets at end of period $ 1,142 $ 1,090 $ 525 $ 490 Funded status at end of period $ 222 $ 171 $ (38) $ (38) Recognized in consolidated balance sheets: Non-current asset $ 229 $ 178 $ — $ — Current liability (1) (1) — — Non-current liability (6) (6) (38) (38) Funded status at end of period $ 222 $ 171 $ (38) $ (38) Amounts recognized in accumulated other comprehensive income (loss) before tax consist of the following: U.S. Plans Non-U.S. Plans September 30, September 30, 2020 2019 2020 2019 (in millions) Net actuarial loss $ 135 $ 154 $ 93 $ 70 Benefit obligations in excess of plan assets were as follows: U.S. Plans Non-U.S. Plans September 30, September 30, 2020 2019 2020 2019 (in millions) Accumulated benefit obligation in excess of plan assets Accumulated benefit obligation at end of period $ (7) $ (7) $ (563) $ (528) Fair value of plan assets at end of period $ — $ — $ 525 $ 490 Projected benefit obligation in excess of plan assets Benefit obligation at end of period $ (7) $ (7) $ (563) $ (528) Fair value of plan assets at end of period $ — $ — $ 525 $ 490 Net periodic benefit cost consist of the following: U.S. Plans Non-U.S. Plans For the Years Ended September 30, 2020 2019 2018 2020 2019 2018 (in millions) Service cost $ — $ — $ — $ 4 $ 4 $ 4 Interest cost 28 32 32 10 13 12 Expected return on assets (72) (71) (70) (15) (18) (20) Amortization of actuarial loss 6 — — 2 — — Settlement loss 8 7 3 — — — Total net periodic benefit cost $ (30) $ (32) $ (35) $ 1 $ (1) $ (4) The service cost component of net periodic benefit cost is presented in personnel expenses while the other components are presented in other non-operating income (expense) on the Company’s consolidated statement of operations. Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) consist of the following: U.S. Plans Non-U.S. Plans For the Years Ended September 30, 2020 2019 2018 2020 2019 2018 (in millions) Current year actuarial loss (gain) $ (5) $ 114 $ (47) $ 21 $ 27 $ 30 Amortization of actuarial (loss) gain (14) (7) (3) (2) — — Current year prior service cost — — — — 1 — Total recognized in other comprehensive income (loss) $ (19) $ 107 $ (50) $ 19 $ 28 $ 30 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (49) $ 75 $ (85) $ 20 $ 27 $ 26 Weighted-average actuarial assumptions used to estimate the benefit obligation and net periodic benefit cost were as follows: U.S. Plans Non-U.S. Plans For the Years Ended September 30, 2020 2019 2018 2020 2019 2018 Discount rate for benefit obligation: Pension 2.88 % 3.26 % 4.23 % 1.60 % 1.80 % 2.90 % Discount rate for net periodic benefit cost: Pension 3.27 % 4.23 % 3.84 % 1.80 % 2.90 % 2.70 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % 3.00 % 3.00 % 4.25 % Rate of increase (1) in compensation levels for: Benefit obligation NA NA NA 2.50 % 2.50 % 3.20 % Net periodic benefit cost NA NA NA 2.50 % 2.50 % 3.20 % (1) This assumption is not applicable for the U.S. plans due to the amendment of the U.S. qualified defined benefit pension plan in October 2015, which discontinued the employer provided credits effective after December 31, 2015. Pension Plan Assets Pension plan assets are managed with a long-term perspective to ensure that there is an adequate level of assets to support benefit payments to participants over the life of the pension plan. Pension plan assets are managed by external investment managers. Investment manager performance is measured against benchmarks for each asset class on a quarterly basis. An independent consultant assists management with investment manager selections and performance evaluations. Pension plan assets are broadly diversified to maintain a prudent level of risk and to provide adequate liquidity for benefit payments. The Company generally evaluates and rebalances pension plan assets, as appropriate, to ensure that allocations are consistent with its investment strategy and within target allocation ranges. For U.S. pension plan assets, the Company’s investment strategy is to invest in the following: equity securities of 35% to 65%, fixed income securities of 43% to 53% and other, primarily consisting of cash equivalents to meet near term expected benefit payments and expenses, of up to 4%. At September 30, 2020, U.S. pension plan asset allocations for these categories were 53%, 46% and 1%, respectively, which were within target allocation ranges. For non-U.S. pension plan assets, the Company’s investment strategy is to invest in the following: equity funds of 12%, interest and inflation hedging assets of 50% and other of 38%, consisting of cash and cash equivalents, corporate debt and asset-backed securities, multi-asset funds and property. At September 30, 2020, non-U.S. pension plan asset allocations for these categories were 13%, 50% and 37%, respectively, which generally aligned with the target allocations. The following tables set forth by level, within the fair value hierarchy, the pension plans’ investments at fair value as of September 30, 2020 and 2019, including the impact of transactions that were not settled at the end of September: U.S. Plans Fair Value Measurements at September 30 Using Inputs Considered as Level 1 Level 2 Level 3 Total 2020 2019 2020 2019 2020 2019 2020 2019 (in millions) Cash equivalents $ 17 $ 18 $ — $ — $ — $ — $ 17 $ 18 Collective investment funds — — 509 580 — — 509 580 Corporate debt securities — — 373 188 — — 373 188 U.S. government-sponsored debt securities — — 30 35 — — 30 35 U.S. Treasury securities 84 99 — — — — 84 99 Asset-backed securities — — — — 37 37 37 37 Equity securities 92 133 — — — — 92 133 Total $ 193 $ 250 $ 912 $ 803 $ 37 $ 37 $ 1,142 $ 1,090 Non-U.S. Plans Fair Value Measurements at September 30 Using Inputs Considered as Level 1 Level 2 Level 3 Total 2020 2019 2020 2019 2020 2019 2020 2019 (in millions) Cash and cash equivalents $ 6 $ 16 $ — $ — $ — $ — $ 6 $ 16 Equity securities — 66 — — — — — 66 Corporate debt securities — — 48 44 — — 48 44 Asset-backed securities — — — — 67 51 67 51 Equity funds — — 65 — — — 65 — Multi-asset securities (1) — — 339 313 — — 339 313 Total $ 6 $ 82 $ 452 $ 357 $ 67 $ 51 $ 525 $ 490 (1) Multi-asset securities represent pension plan assets that are invested in funds comprised of broad ranges of assets. Level 1 assets. Cash equivalents (money market funds and time deposits), U.S. Treasury securities and equity securities are classified as Level 1 within the fair value hierarchy, as fair value is based on unadjusted quoted prices in active markets for identical assets. Level 2 assets. Collective investment funds are unregistered investment vehicles that generally commingle the assets of multiple fiduciary clients, such as pension and other employee benefit plans, to invest in a portfolio of stocks, bonds or other securities. Although the collective investment funds held by the plan are ultimately invested in publicly traded equity securities, their own unit values are not directly observable, and therefore they are classified as Level 2. Equity funds are investments in mutual funds that in-turn ultimately invest in equity securities of various jurisdictions. These are classified as level 2 as the equity funds held by the plan are not actively traded but the fair value of underlying securities are generally, although not always, determined with observable data and inputs. The fair values of corporate debt, multi-asset and U.S. government-sponsored securities are based on quoted prices in active markets for similar, not identical, assets. Level 3 assets. Asset-backed securities are bonds that are backed by various types of assets and primarily consist of mortgage-backed securities. Asset-backed securities are classified as Level 3 due to a lack of observable inputs in measuring fair value. Cash Flows Expected future employer contributions and benefit payments are as follows: U.S. Plans Non-U.S. Plans (in millions) Expected employer contributions 2021 $ 1 $ 10 Expected benefit payments 2021 130 7 2022 93 7 2023 89 8 2024 80 8 2025 74 8 2026-2030 289 43 Other Benefits The Company sponsors a defined contribution plan, or 401(k) plan, that covers substantially all of its employees residing in the U.S. In fiscal 2020, 2019 and 2018, personnel costs included $140 million, $121 million, and $93 million, respectively, of expenses attributable to the Company’s employees under the 401(k) plan. The Company’s contributions to this 401(k) plan are funded on a current basis, and the related expenses are recognized in the period that the payroll expenses are incurred. |
Settlement Guarantee Management
Settlement Guarantee Management | 12 Months Ended |
Sep. 30, 2020 | |
Settlement Guarantee Management [Abstract] | |
Settlement Guarantee Management | Note 12—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. During the year ended September 30, 2020, the Company’s maximum settlement exposure was $97.3 billion and the average daily settlement exposure was $55.6 billion. 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 September 30, 2020 and 2019, the Company held the following collateral to manage settlement exposure: September 30, 2020 2019 (in millions) Restricted cash and restricted cash equivalents $ 1,850 $ 1,648 Pledged securities at market value 228 259 Letters of credit 1,306 1,293 Guarantees 717 477 Total $ 4,101 $ 3,677 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 13—Derivative Financial Instruments Designated derivative financial instrument hedges. At September 30, 2020 and 2019, the aggregate notional amount of the Company’s derivative contracts outstanding in its hedge program was $10.7 billion and $10.9 billion, respectively. Cash Flow Hedges As of September 30, 2020 and 2019, the Company’s cash flow hedges in an asset position totaled $71 million and $47 million, respectively, and were classified in prepaid expenses and other current assets on the consolidated balance sheets. As of September 30, 2020 and 2019 cash flow hedges in a liability position totaled $39 million and $31 million, respectively, and were classified in accrued liabilities on the consolidated balance sheets. These amounts are subject to master netting agreements, which provide the Company with a legal right to net settle multiple payable and receivable positions with the same counterparty, in a single currency through a single payment. However, the Company presents fair values on a gross basis on the consolidated balance sheets . See Note 1—Summary of Significant Accounting Policies. The Company uses regression analysis to assess hedge effectiveness prospectively and retrospectively. The effectiveness tests are performed on foreign exchange forward contracts based on changes in the spot rate of the derivative instrument compared to changes in the spot rate of the forecasted hedged transaction. Forward points are excluded from effectiveness testing and measurement purposes. Excluded forward points are reported in earnings. For fiscal 2020, 2019 and 2018, the amounts by which earnings were reduced relating to excluded forward points from cash flow hedges were $9 million, $12 million and $9 million, respectively. The effective portion of changes in the fair value of derivative contracts designated as cash flow hedges is recorded as a component of accumulated other comprehensive income or loss on the consolidated balance sheets. When the forecasted transaction occurs and is recognized in earnings, the amount in accumulated other comprehensive income or loss related to that hedge is reclassified to operating revenue or expense. During fiscal 2021, the Company expects to reclassify $40 million of pre-tax gains to earnings. Net Investment and Fair Value Hedges In fiscal 2019, the Company entered into foreign exchange forward contracts which were designated as a net investment hedge against a portion of the Company’s net investment in Visa Europe. In fiscal 2019, the Company also entered into interest rate and cross-currency swap agreements on a portion of the Company’s outstanding 3.15% Senior Notes due December 2025. The Company designated the interest rate swap as a fair value hedge and the cross-currency swap as a net investment hedge. As of September 30, 2020 and 2019, the Company’s net investment hedges in an asset position totaled $186 million and $298 million, respectively, and were classified in prepaid expenses and other current assets and other assets on the consolidated balance sheets. As of September 30, 2020, the Company’s net investment hedges in a liability position was $137 million, and classified in other liabilities on the consolidated balance sheets. As of September 30, 2020 and 2019, the Company’s fair value hedges in an asset position totaled $248 million and $89 million, respectively, and were classified in other assets on the consolidated balance sheets. As of September 30, 2019, the Company’s fair value hedges in a liability position was $2 million and was classified in other liabilities on the consolidated balance sheets. For fiscal 2020 and 2019, the Company recorded an increase in earnings of $150 million and $95 million, respectively, related to forward points and interest differentials from forward contracts and swap agreements, respectively, which are excluded from effectiveness testing. Non-designated derivative financial instrument hedges The Company utilizes foreign exchange derivative contracts to hedge against foreign currency exchange rate fluctuations related to certain monetary assets and liabilities denominated in foreign currency. As of September 30, 2020 and 2019, the aggregate notional amount of these balance sheet hedges was $1.6 billion and $0.8 billion, respectively. As of September 30, 2020 and 2019, the Company’s balance sheet hedges in an asset position totaled $7 million and $3 million, respectively, and were classified in other assets on the consolidated balance sheets, while balance sheet hedges in a liability position totaled $5 million and $19 million, respectively, and were classified in accrued liabilities on the consolidated balance sheets. Credit and market risks. The Company’s derivative financial instruments are subject to both credit and market risk. The Company monitors the credit-worthiness of the financial institutions that are counterparties to its derivative financial instruments and does not consider the risks of counterparty nonperformance to be significant. The Company mitigates this risk by entering into master netting agreements, and such agreements require each party to post collateral against its net liability position with the respective counterparty. As of September 30, 2020, the Company has received collateral of $64 million, from counterparties, which is included in accrued liabilities in the consolidated balance sheets, and posted collateral of $26 million, which is included in prepaid expenses and other current assets in the consolidated balance sheets. Notwithstanding the Company’s efforts to manage foreign exchange risk, there can be no absolute assurance that its hedging activities will adequately protect against the risks associated with foreign currency fluctuations. Credit and market risks related to derivative instruments were not considered significant as of September 30, 2020. |
Enterprise-wide Disclosures and
Enterprise-wide Disclosures and Concentration of Business | 12 Months Ended |
Sep. 30, 2020 | |
Enterprise-wide Disclosures and Concentration of Business [Abstract] | |
Enterprise-wide Disclosures and Concentration of Business | Note 14—Enterprise-wide Disclosures and Concentration of Business The Company’s long-lived net property and equipment and ROU assets are classified by major geographic areas as follows: September 30, 2020 2019 (1) (in millions) U.S. $ 1,350 $ 1,186 International 558 263 Total $ 1,908 $ 1,449 (1) The fiscal 2019 amounts have been revised to conform to the fiscal 2020 presentation. Revenues by geographic market is primarily based on the location of the issuing financial institution. Net revenues earned in the U.S. were approximately 46% of total net revenues in fiscal 2020 and 45% of total net revenues in each of fiscal 2019 and fiscal 2018. No individual country, other than the U.S., generated more than 10% of total net revenues in these years. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 15—Stockholders’ Equity Series A preferred stock issuance. In September 2020, the Company issued 374,819 shares of series A preferred stock in connection with the Fourth anniversary release. See Note 5—U.S. and Europe Retrospective Responsibility Plans . As-converted class A common stock. The number of shares of each series and class, and the number of shares of class A common stock on an as-converted basis at September 30, 2020 and 2019, were as follows: September 30, 2020 2019 Shares Conversion Rate Into Class A Common Stock As-converted Class A Common Stock (1) Shares Conversion Rate Into Class A Common Stock As-converted Class A Common Stock (1) (in millions, except conversion rate) Series A preferred stock — (2) 100.0000 35 — — — UK&I preferred stock 2 6.3870 16 2 12.9360 32 Europe preferred stock 3 6.8610 22 3 13.8840 44 Class A common stock (3) 1,683 — 1,683 1,718 — 1,718 Class B common stock 245 1.6228 (4) 398 245 1.6228 (4) 398 Class C common stock 11 4.0000 43 11 4.0000 45 Total 2,197 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) The number of shares outstanding was less than one million. (3) Class A common stock shares outstanding reflect repurchases settled on or before September 30, 2020 and 2019. (4) 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. See Note 5—U.S. and Europe Retrospective Responsibility Plans . The following table present s the reduction in as-converted UK&I and Europe preferred stock after the Company recovered V E territory covered losses recovered through conversion rate adjustments and the Fourth anniversary release: For the Years Ended September 30, 2020 2019 2018 UK&I Europe UK&I Europe UK&I Europe (in millions, except per share data) Reduction in equivalent number of as-converted shares of class A common stock 16 22 — (1) — (1) — (1) — (1) Effective price per share (2) $ 194.31 $ 194.33 $ 141.32 $ 150.26 $ 113.05 $ 112.92 Recovery through conversion rate adjustment $ 72 $ 92 $ 6 $ 2 $ 35 $ 21 Fourth anniversary release $ 3,084 $ 4,216 $ — $ — $ — $ — (1) The reduction in equivalent number of shares of class A common stock was less than one million shares. (2) Effective price per share for each adjustment made during the year is calculated using the volume-weighted average price of the Company’s class A common stock over a pricing period in accordance with the Company’s current certificates of designations for its series B and C convertible participating preferred stock. Effective price per share for each fiscal year is calculated using the weighted-average effective prices of the respective adjustments made during the year. Under the terms of the U.S. retrospective responsibility plan, when the Company makes a deposit into the litigation escrow account, the shares of class B common stock are subject to dilution through a reduction to the conversion rate of the shares of class B common stock to shares of class A common stock. See Note 5—U.S. and Europe Retrospective Responsibility Plans. The following table presents the reduction in as-converted class B common stock after deposits into the litigation escrow account for the following fiscal years: For the Years Ended September 30, 2020 2019 2018 (in millions, except per share data) Reduction in equivalent number of as-converted shares of class A common stock — 2 5 Effective price per share (1) $ — $ 174.73 $ 132.32 Deposits under the U.S. retrospective responsibility plan $ — $ 300 $ 600 (1) Effective price per share is calculated using the volume-weighted average price of the Company’s class A common stock over a pricing period in accordance with the Company’s current certificate of incorporation. Common stock repurchases. The following table presents share repurchases in the open market for the following fiscal years: For the Years Ended September 30, 2020 2019 2018 (in millions, except per share data) Shares repurchased in the open market (1) 44 56 58 Average repurchase price per share (2) $ 183.00 $ 154.01 $ 123.76 Total cost $ 8,114 $ 8,607 $ 7,192 (1) Shares repurchased in the open market reflect repurchases that settled during fiscal 2020, 2019 and 2018. All sh ares repurchased in the open market have been retired and constitute authorized but unissued shares. (2) Average repurchase price per share is calculated based on unrounded numbers. In January 2019, the Company’s board of directors authorized an $8.5 billion share repurchase program and in January 2020, authorized an additional $9.5 billion share repurchase program (the “January 2020 Program”). This authorization has no expiration date. As of September 30, 2020, the Company’s January 2020 program had remaining authorized funds of $5.5 billion. All share repurchase programs authorized prior to January 2020 have been completed. Dividends declared. In fiscal 2020, the Company declared and paid $2.7 billion in dividends at a quarterly rate of $0.30 per share. On October 23, 2020, the Company’s board of directors declared a quarterly cash dividend of $0.32 per share of class A common stock (determined in the case of class B and C common stock and series A, UK&I and Europe preferred stock on an as-converted basis), which will be paid on December 1, 2020, to all holders of record of the Company’s common and preferred stock as of November 13, 2020. Class B common stock. The class B common stock is not convertible or transferable until the date on which all of the U.S. covered litigation has been finally resolved. This transfer restriction is subject to limited exceptions, including transfers to other holders of class B common stock. After termination of the restrictions, the class B common stock will be convertible into class A common stock if transferred to a person that was not a Visa Member (as defined in the current certificate of incorporation) or similar person or an affiliate of a Visa Member or similar person. Upon such transfer, each share of class B common stock will automatically convert into a number of shares of class A common stock based upon the applicable conversion rate in effect at the time of such transfer. Adjustment of the conversion rate occurs upon: (i) the completion of any follow-on offering of class A common stock completed to increase the size of the U.S. litigation escrow account (or any cash deposit by the Company in lieu thereof) resulting in a further corresponding decrease in the conversion rate; or (ii) the final resolution of the U.S. covered litigation and the release of funds remaining on deposit in the U.S. litigation escrow account to the Company resulting in a corresponding increase in the conversion rate. See Note 5—U.S. and Europe Retrospective Responsibility Plans. Class C common stock. As of September 30, 2020, all of the shares of class C common stock have been released from transfer restrictions. A total of 140 million shares have been converted from class C to class A common stock upon their sale into the public market. Preferred stock. In connection with the Visa Europe acquisition, three new series of preferred stock of the Company were created. Upon issuance, all of the preferred stock participate on an as-converted basis in regular quarterly cash dividends declared on the Company’s class A common stock. Preferred stock may be issued as redeemable or non-redeemable, and has preference over any class of common stock with respect to the payment of dividends and distribution of the Company’s assets in the event of a liquidation or dissolution. The UK&I and Europe preferred stock is convertible upon certain conditions into shares of class A common stock or series A preferred stock. The shares of UK&I and Europe preferred stock are subject to restrictions on transfer and may become convertible in stages based on developments in the VE territory covered litigation. The shares of UK&I and Europe preferred stock will become fully convertible on the 12th anniversary of the closing of the Visa Europe acquisition, subject only to a holdback to cover any then-pending claims. Upon any such conversion of the UK&I or Europe preferred stock (whether by such 12th anniversary, or thereafter with respect to claims pending on such anniversary), the conversion rate would be adjusted downward and the holder would receive either class A common stock or series A preferred stock (for those who are not eligible to hold class A common stock pursuant to the Company’s charter). The conversion rates may also be reduced from time to time to offset certain liabilities. The series A preferred stock, generally designed to be economically equivalent to the Company’s class A common stock, is freely transferable and each share of series A preferred stock will automatically convert into 100 shares of class A common stock upon a transfer to any holder that is eligible to hold class A common stock under the charter. See Note 5—U.S. and Europe Retrospective Responsibility Plans. Voting rights. The holders of the UK&I and Europe preferred stock have no right to vote on any matters, except for certain defined matters, including, in specified circumstances, any consolidation, merger, combination or similar transaction of the Company in which the preferred stockholders would either (i) receive shares of common stock or other equity securities of the Company with preferences, rights and privileges that are not substantially identical to the preferences, rights and privileges of the applicable series of preferred stock or (ii) receive securities, cash or other property that is different from what the Company’s class A common stockholders would receive. With respect to these limited matters on which the holders of preferred stock may vote, approval by the preferred stockholders requires the affirmative vote of the outstanding voting power of each such series of preferred stock, each such series voting as a single class. In either case, the UK&I and Europe preferred stockholders are entitled to cast a number of votes equal to the number of shares held by each such holder. Holders of the series A preferred stock, upon issuance at conversion, will have similar voting rights to the rights of the holders of the UK&I and Europe preferred stock. Class A common stockholders have the right to vote on all matters on which stockholders generally are entitled to vote. Class B and C common stockholders have no right to vote on any matters, except for certain defined matters, including (i) any decision to exit the core payments business, in which case the class B and C common stockholders will vote together with the class A common stockholders in a single class, and (ii) in specified circumstances, any consolidation, merger, combination or similar transaction of the Company, in which case the class B and C common stockholders will vote together as a single class. In either case, the class B and C common stockholders are entitled to cast a number of votes equal to the number of shares of class B or C common stock held multiplied by the applicable conversion rate in effect on the record date. Holders of the Company’s common stock have no right to vote on any amendment to the current certificate of incorporation that relates solely to any series of preferred stock. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 16—Earnings Per Share Basic earnings per share is computed by dividing net income available to each class 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 of each class of common stock outstanding reflects changes in ownership over the periods presented. See Note 15—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 series A, 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 Employee Stock Purchase Plan and the assumed vesting of unearned performance shares. The following table presents earnings per share for fiscal 2020: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 8,310 1,697 $ 4.90 $ 10,866 2,223 (3) $ 4.89 Class B common stock 1,951 245 $ 7.94 1,948 245 $ 7.93 Class C common stock 214 11 $ 19.58 214 11 $ 19.56 Participating securities (4) 391 Not presented Not presented 391 Not presented Not presented Net income $ 10,866 The following table presents earnings per share for fiscal 2019: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 9,273 1,742 $ 5.32 $ 12,080 2,272 (3) $ 5.32 Class B common stock 2,130 245 $ 8.68 2,127 245 $ 8.66 Class C common stock 247 12 $ 21.30 246 12 $ 21.26 Participating securities (4) 430 Not presented Not presented 429 Not presented Not presented Net income $ 12,080 The following table presents earnings per share for fiscal 2018: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 7,937 1,792 $ 4.43 $ 10,301 2,329 (3) $ 4.42 Class B common stock 1,787 245 $ 7.28 1,785 245 $ 7.27 Class C common stock 218 12 $ 17.72 217 12 $ 17.69 Participating securities (4) 359 Not presented Not presented 358 Not presented Not presented Net income $ 10,301 (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, 400 million and 403 million for fiscal 2020, 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, 46 million and 49 million for fiscal 2020, 2019 and 2018, respectively. The weighted-average number of shares of preferred stock included within participating securities was 1 million of as-converted series A preferred stock for fiscal 2020, 32 million of as-converted UK&I preferred stock for each of fiscal 2020, 2019 and 2018, and 43 million of as-converted Europe preferred stock for fiscal 2020 and 44 million of as-converted Europe preferred stock for each of fiscal 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 3 million common stock equivalents for each of fiscal 2020, 2019 and 2018 because their effect would have been dilutive. The computation excludes 1 million of common stock equivalents for each of fiscal 2020, 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 series A preferred stock, UK&I and Europe preferred stock, restricted stock awards, 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. See Note 15—Stockholders’ Equity. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | Note 17—Share-based Compensation 2007 Equity Incentive Compensation Plan The Company’s 2007 Equity Incentive Compensation Plan, or the EIP, authorizes the compensation committee of the board of directors to grant non-qualified stock options (“options”), restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and performance-based shares to its employees and non-employee directors, for up to 236 million shares of class A common stock. Shares available for award may be either authorized and unissued or previously issued shares subsequently acquired by the Company. The EIP will continue to be in effect until all of the common stock available under the EIP is delivered and all restrictions on those shares have lapsed, unless the EIP is terminated earlier by the Company’s board of directors. Awards may be granted under the plan until January 31, 2022. For fiscal 2020, 2019 and 2018, the Company recorded share-based compensation cost related to the EIP of $393 million, $388 million and $312 million, respectively, in personnel expense on its consolidated statements of operations. The related tax benefits for fiscal 2020, 2019 and 2018 were $63 million, $59 million and $53 million, respectively. Options Options issued under the EIP expire 10 years from the date of grant and primarily vest ratably over 3 years from the date of grant, subject to earlier vesting in full under certain conditions. During fiscal 2020, 2019 and 2018, the fair value of each stock option was estimated on the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: For the Years Ended September 30, 2020 2019 2018 Expected term (in years) (1) 4.03 3.98 4.00 Risk-free rate of return (2) 1.6 % 2.9 % 2.0 % Expected volatility (3) 18.7 % 20.2 % 18.3 % Expected dividend yield (4) 0.7 % 0.7 % 0.7 % Fair value per option granted $ 29.37 $ 25.89 $ 18.24 (1) Until March 2018, this assumption was based on the Company’s historical option exercises and those of a set of peer companies that management believed to be generally comparable to Visa. The Company’s data was weighted based on the number of years between the measurement date and Visa’s IPO date as a percentage of the options’ contractual term. The relative weighting placed on Visa’s data and peer data for stock options granted until March 2018 was approximately 97% and 3% in fiscal 2018, respectively. The assumptions for stock options granted after March 2018 was based on Visa’s historical exercise experience as the passage of time since the Company’s IPO has exceeded 10 years. (2) Based upon the zero coupon U.S. treasury bond rate over the expected term of the awards. (3) Based on the Company’s implied and historical volatility. (4) Based on the Company’s annual dividend rate on the date of grant. The following table summarizes the Company’s option activity for fiscal 2020: Options Weighted- Weighted- Aggregate Intrinsic Value (1) (in millions) Outstanding at September 30, 2019 5,714,658 $ 90.18 Granted 1,247,982 $ 182.50 Forfeited (67,193) $ 140.17 Expired — $ — Exercised (1,108,898) $ 63.53 Outstanding at September 30, 2020 5,786,549 $ 114.61 6.87 $ 494 Options exercisable at September 30, 2020 3,425,611 $ 87.28 5.79 $ 386 Options exercisable and expected to vest at September 30, 2020 (2) 5,718,325 $ 113.96 6.84 $ 492 (1) Calculated using the closing stock price on the last trading day of fiscal 2020 of $199.97, less the option exercise price, multiplied by the number of instruments. (2) Applied a forfeiture rate to unvested options outstanding at September 30, 2020 to estimate the options expected to vest in the future. For the options exercised during fiscal 2020, 2019 and 2018, the total intrinsic value was $146 million, $107 million and $249 million, respectively, and the tax benefit realized was $31 million, $23 million and $55 million, respectively. As of September 30, 2020, there was $22 million of total unrecognized compensation cost related to unvested options, which is expected to be recognized over a weighted-average period of approximately 0.45 years. Restricted Stock Awards and Restricted Stock Units RSAs and RSUs issued under the EIP primarily vest ratably over 3 years from the date of grant, subject to earlier vesting in full under certain conditions. Upon vesting, the RSAs are settled in class A common stock on a one-for-one basis. During the vesting period, RSA award recipients are eligible to receive dividends and participate in the same voting rights as those granted to the holders of the underlying class A common stock. Upon vesting, RSUs can be settled in class A common stock on a one-for-one basis or in cash, or a combination thereof, at the Company’s option. The Company does not currently intend to settle any RSUs in cash. During the vesting period, RSU award recipients are eligible to receive dividend equivalents, but do not participate in the voting rights granted to the holders of the underlying class A common stock. The Company discontinued granting RSAs in fiscal 2016 but will continue to grant RSUs under the EIP. As of September 30, 2018, there were no RSAs outstanding. The fair value and compensation cost before estimated forfeitures for RSAs and RSUs is calculated using the closing price of class A common stock on the date of grant. The weighted-average grant date fair value of RSUs granted during fiscal 2020, 2019 and 2018 was $183.61, $137.38 and $111.11, respectively. The total grant date fair value of RSAs and RSUs vested during fiscal 2020, 2019 and 2018 was $284 million , $228 million and $183 million, respectively. The following table summarizes the Company’s RSU activity for fiscal 2020: Restricted Stock Units Weighted- Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in millions) Outstanding at September 30, 2019 5,166,759 $ 118.79 Granted 2,352,714 $ 183.61 Vested (2,561,379) $ 110.73 Forfeited (267,594) $ 147.70 Outstanding at September 30, 2020 4,690,500 $ 154.06 0.83 $ 938 (1) Calculated by multiplying the closing stock price on the last trading day of fiscal 2020 of $199.97 by the number of instruments. At September 30, 2020, there was $381 million of total unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately 0.83 years. Performance-based Shares For the Company’s performance-based shares, in addition to service conditions, the ultimate number of shares to be earned depends on the achievement of both performance and market conditions. The performance condition is based on the Company’s earnings per share target. The market condition is based on the Company’s total shareholder return ranked against that of other companies that are included in the Standard & Poor’s 500 Index. The fair value of the performance-based shares for fiscal 2020, incorporating the market condition, is estimated on the grant date using a Monte Carlo simulation model with the following weighted-average assumptions: risk-free rate of return of 1.6%, expected term of 1.9 years, expected volatility of 20.9% and expected dividend yield of 0.7%. The grant-date fair value of performance-based shares granted in fiscal 2020, 2019 and 2018 was $211.08, $153.42 and $120.11 per share, respectively. Performance-based shares vest over three years and are subject to earlier vesting in full under certain conditions. The total grant date fair value of performance-based shares vested and earned during fiscal 2020, 2019 and 2018 was $65 million , $41 million and $31 million, respectively. Compensation cost for performance-based shares is initially estimated based on target performance. It is recorded net of estimated forfeitures and adjusted as appropriate throughout the performance period. The following table summarizes the maximum number of performance-based shares which could be earned and related activity for fiscal 2020: Shares Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in millions) Outstanding at September 30, 2019 1,070,690 $ 129.08 Granted (2) 470,128 $ 211.08 Vested and earned (546,018) $ 118.18 Unearned — $ — Forfeited — $ — Outstanding at September 30, 2020 994,800 $ 171.33 0.73 $ 199 (1) Calculated by multiplying the closing stock price on the last trading day of fiscal 2020 of $199.97 by the number of instruments. (2) Represents the maximum number of performance-based shares which could be earned. At September 30, 2020, there was $20 million of total unrecognized compensation cost related to unvested performance-based shares, which is expected to be recognized over a weighted-average period of approximately 0.73 years. Employee Stock Purchase Plan The Visa Inc. Employee Stock Purchase Plan (the “ESPP”) permits eligible employees to purchase the Company’s class A common stock at a 15% discount of the stock price on the purchase date, subject to certain restrictions. A total of 20 million shares of class A common stock have been reserved for issuance under the ESPP. In fiscal 2020, 2019 and 2018, the ESPP did not have a material impact on the consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18—Commitments and Contingencies Commitments. The Company has software licenses throughout the world with varying expiration dates. At September 30, 2020, future minimum payments on software licenses are as follows: For the Years Ending September 30, 2021 2022 2023 2024 2025 Thereafter Total (in millions) Software licenses $ 61 $ 26 $ 5 $ 5 $ 5 $ — $ 102 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 19—Income Taxes The Company’s income before taxes by fiscal year consisted of the following: For the Years Ended September 30, 2020 2019 2018 (in millions) U.S. $ 9,178 $ 9,536 $ 8,088 Non-U.S. 4,612 5,348 4,718 Total income before taxes $ 13,790 $ 14,884 $ 12,806 For fiscal 2020 and 2019, U.S. income before taxes included $3.0 billion, and for fiscal 2018 included $2.7 billion, of the Company’s U.S. entities’ income from operations outside of the U.S. Income tax provision by fiscal year consisted of the following: For the Years Ended September 30, 2020 2019 2018 (in millions) Current: U.S. federal $ 1,662 $ 1,504 $ 2,819 State and local 212 243 219 Non-U.S. 743 843 754 Total current taxes 2,617 2,590 3,792 Deferred: U.S. federal 42 184 (1,214) State and local 9 28 (96) Non-U.S. 256 2 23 Total deferred taxes 307 214 (1,287) Total income tax provision $ 2,924 $ 2,804 $ 2,505 The tax effect of temporary differences that give rise to significant portions of deferred tax assets and liabilities at September 30, 2020 and 2019, are presented below: September 30, 2020 2019 (in millions) Deferred Tax Assets: Accrued compensation and benefits $ 114 $ 117 Accrued litigation obligation 204 273 Client incentives 121 125 Net operating loss carryforwards 80 65 Comprehensive loss 148 33 Federal benefit of state taxes 203 148 Other 12 6 Valuation allowance (84) (69) Deferred tax assets 798 698 Deferred Tax Liabilities: Property, equipment and technology, net (343) (314) Intangible assets (5,492) (4,983) Foreign taxes (137) (184) Deferred tax liabilities (5,972) (5,481) Net deferred tax liabilities $ (5,174) $ (4,783) On July 22, 2020, UK enacted legislation that repealed the previous tax rate reduction from 19% to 17% that was effective on April 1, 2020. As a result, the Company recorded a $329 million non-recurring, non-cash tax expense related to the remeasurement of its net UK deferred tax liabilities, primarily related to intangibles recorded upon the acquisition of Visa Europe in fiscal 2016. The increase in deferred tax liabilities reflects the remeasurement of UK deferred tax liabilities. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in the U.S. on March 27, 2020. The CARES Act includes several U.S. income tax provisions related to, among other things, net operating loss carrybacks, alternative minimum tax credits, modifications to the net interest deduction limitations, and technical amendments regarding the income tax depreciation of qualified improvement property placed in service after December 31, 2017. The CARES Act does not have a material impact on the Company’s financial results. At September 30, 2020 and 2019, net deferred tax assets of $63 million and $24 million, respectively, are reflected in other assets on the consolidated balance sheets. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are deductible. The fiscal 2020 and 2019 valuation allowances relate primarily to foreign net operating losses from subsidiaries acquired in recent years. As of September 30, 2020, the Company had $13 million federal, $16 million state and $367 million foreign net operating loss carryforwards from acquired subsidiaries. Federal and state net operating loss carryforwards generated in years prior to fiscal 2018 will expire in fiscal 2028 through 2037. Federal net operating losses generated after fiscal 2017 may be carried forward indefinitely. Foreign net operating losses may be carried forward indefinitely, except for certain foreign losses that expire in fiscal 2025 through 2027. The Company expects to fully utilize the state net operating loss carryforwards in future years. The income tax provision differs from the amount of income tax determined by applying the applicable U.S. federal statutory rate to pretax income, as a result of the following: For the Years Ended September 30, 2020 2019 2018 (in millions, except percentages) U.S. federal income tax at statutory rate $ 2,896 21 % $ 3,126 21 % $ 3,141 25 % State income taxes, net of federal benefit 199 2 % 223 2 % 201 2 % Non-U.S. tax effect, net of federal benefit (483) (4) % (527) (4) % (465) (4) % Transition tax on foreign earnings — — % — — % 1,147 9 % Remeasurement of deferred tax balances 329 2 % — — % (1,133) (9) % Other, net (17) — % (18) — % (386) (3) % Income tax provision $ 2,924 21 % $ 2,804 19 % $ 2,505 20 % In fiscal 2020 and fiscal 2019, the effective income tax rate was 21% and 19%, respectively. The effective tax rate in fiscal 2020 differs from the effective tax rate in fiscal 2019 mainly due to a $329 million non-recurring, non-cash tax expense related to the remeasurement of UK deferred tax liabilities, as discussed above. In fiscal 2019 and fiscal 2018, the effective income tax rate was 19% and 20%, respectively. The effective tax rate in fiscal 2019 differs from the effective tax rate in fiscal 2018 primarily due to: • a decrease in federal statutory rate, from a blended rate of 24.5% in fiscal 2018 to a rate of 21% in fiscal 2019, resulting from the Tax Act, • new provisions enacted as part of the Tax Act, including the deduction for foreign-derived intangible income (“FDII”) and tax on global intangible low-tax income (“GILTI”), effective for the Company on October 1, 2018; and the absence of the following items recorded in fiscal 2018: • a $1.1 billion one-time transition tax expense on certain untaxed foreign earnings in accordance with the Tax Act; • a $1.1 billion non-recurring, non-cash benefit from the remeasurement of deferred tax balances due to the reduction in U.S. federal tax rate enacted by the Tax Act; and • $161 million of tax benefits due to various non-recurring audit settlements. Current income taxes receivable at September 30, 2020 and 2019 of $93 million and $130 million, respectively, were included in prepaid expenses and other current assets. Non-current income taxes receivable at September 30, 2020 and 2019 of $988 million and $771 million, respectively, were included in other assets. Income taxes payable at September 30, 2020 and 2019 of $134 million and $327 million, respectively, were included in accrued liabilities. Accrued income taxes at September 30, 2020 and 2019 of $2.8 billion and $2.5 billion, respectively, were included in other liabilities. The Company’s operating hub in the Asia Pacific region is located in Singapore. Effective October 1, 2008 through September 30, 2023, it is subject to a tax incentive which is conditional upon meeting certain business operations and employment thresholds in Singapore. The tax incentive decreased Singapore tax by $280 million , $324 million and $295 million, and the benefit of the tax incentive on diluted earnings per share was $0.13 , $0.14 and $0.13 in fiscal 2020, 2019 and 2018, respectively. In accordance with Accounting Standards Codification 740—Income Taxes , the Company is required to inventory, evaluate and measure all uncertain tax positions taken or to be taken on tax returns, and to record liabilities for the amount of such positions that may not be sustained, or may only partially be sustained, upon examination by the relevant taxing authorities. At September 30, 2020, 2019, and 2018, the Company’s total gross unrecognized tax benefits were $2.6 billion, $2.2 billion and $1.7 billion, respectively, exclusive of interest and penalties described below. Included in the $2.6 billion, $2.2 billion and $1.7 billion are $1.6 billion, $1.4 billion and $1.2 billion of unrecognized tax benefits, respectively, that if recognized, would reduce the effective tax rate in a future period. A reconciliation of beginning and ending unrecognized tax benefits by fiscal year is as follows: 2020 2019 2018 (in millions) Balance at beginning of period $ 2,234 $ 1,658 $ 1,353 Increases of unrecognized tax benefits related to prior years 66 216 367 Decreases of unrecognized tax benefits related to prior years (83) (13) (233) Increases of unrecognized tax benefits related to current year 376 384 172 Decreases related to settlements with taxing authorities (12) (9) — Reductions related to lapsing statute of limitations (2) (2) (1) Balance at end of period $ 2,579 $ 2,234 $ 1,658 In fiscal 2020, 2019 and 2018, the Company recognized $68 million, $66 million and $15 million of interest expense, respectively, related to uncertain tax positions. In fiscal 2020, 2019 and 2018, the Company accrued penalties related to uncertain tax positions of $4 million, $5 million and none, respectively. At September 30, 2020 and 2019, the Company had accrued interest of $233 million and $165 million, respectively, and accrued penalties of $31 million and $26 million, respectively, related to uncertain tax positions included in other long-term liabilities in its consolidated balance sheets. The Company’s fiscal 2012 through 2015 U.S. federal and California income tax returns are currently under examination. The Company has filed federal refund claims for fiscal 2008 through 2011, and California refund claims for fiscal 2006 through 2011, which are also currently under examination. Except for the refund claims, the federal and California statutes of limitations have expired for fiscal years prior to 2012. During fiscal 2013, the Canada Revenue Agency (CRA) completed its examination of the Company’s fiscal 2003 through 2009 Canadian tax returns and proposed certain assessments. Based on the findings of its examination, the CRA also proposed certain assessments to the Company’s fiscal 2010 through 2017 Canadian tax returns. The Company filed notices of objection against these assessments and, in fiscal 2015, completed the appeals process without reaching a settlement with the CRA. In April 2016, the Company petitioned the Tax Court of Canada to overturn the CRA’s assessments. In September 2020, the Company decided to accept a settlement offer provided by the CRA. The settlement agreement is subject to approval by the Tax Court of Canada. The Company’s income tax provision has been adjusted accordingly. The India tax authorities completed the first level examination of the Company’s income tax returns for the taxable years falling within the period from fiscal 2010 to 2016, and proposed certain assessments. The Company objected to these proposed assessments and filed appeals to the appellate authorities. While the timing and outcome of the final resolution of these appeals are uncertain, the Company believes that its income tax provision adequately reflects its income tax obligations in India. The Company is also subject to examinations by various state and foreign tax authorities. All material state and foreign tax matters have been concluded for years through fiscal 2006. The timing and outcome of the final resolutions of the federal, state and foreign tax examinations and refund claims are uncertain. As such, it is not reasonably possible to estimate the impact that the final outcomes could have on the Company’s unrecognized tax benefits in the next 12 months. |
Legal Matters
Legal Matters | 12 Months Ended |
Sep. 30, 2020 | |
Legal Matters [Abstract] | |
Legal Matters | Note 20—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 by fiscal year: 2020 2019 (in millions) Balance at beginning of period $ 1,203 $ 1,434 Provision for uncovered legal matters 10 37 Provision for covered legal matters 26 535 Reestablishment of prior accrual related to interchange multidistrict litigation 467 — Payments for legal matters (792) (803) Balance at end of period $ 914 $ 1,203 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. 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. See further discussion below under Interchange Multidistrict Litigation (MDL) – Individual Merchant Actions and Note 5—U.S. and Europe Retrospective Responsibility Plans. The following table summarizes the accrual activity related to U.S. covered litigation by fiscal year: 2020 2019 (in millions) Balance at beginning of period $ 1,198 $ 1,428 Provision for interchange multidistrict litigation — 370 Reestablishment of prior accrual related to interchange multidistrict litigation 467 — Payments for U.S. covered litigation (777) (600) Balance at end of period $ 888 $ 1,198 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 5—U.S. and Europe Retrospective Responsibility Plans . The following table summarizes the accrual activity related to VE territory covered litigation by fiscal year: 2020 2019 (in millions) Balance at beginning of period $ 5 $ — Accrual for VE territory covered litigation 26 165 Payments for VE territory covered litigation (10) (160) Balance at end of period $ 21 $ 5 U.S. Covered Litigation Interchange Multidistrict Litigation (MDL) – Putative Class Actions Beginning in May 2005, a series of complaints (the majority of which were styled as class actions) were filed in U.S. federal district courts by merchants against Visa U.S.A., Visa International and/or Mastercard, and in some cases, certain U.S. financial institutions. The Judicial Panel on Multidistrict Litigation issued an order transferring the cases to the U.S. District Court for the Eastern District of New York for coordination of pre-trial proceedings in MDL 1720. A group of purported class plaintiffs subsequently filed amended and supplemental class complaints. The individual and class complaints generally challenged, among other things, Visa’s and Mastercard’s purported setting of interchange reimbursement fees, their “no surcharge” and honor-all-cards rules, alleged tying and bundling of transaction fees, and Visa’s reorganization and IPO, under the federal antitrust laws and, in some cases, certain state unfair competition laws. The complaints sought money damages, declaratory and injunctive relief, attorneys’ fees and, in one instance, an order that the IPO be unwound. Visa Inc., Visa U.S.A., Visa International, Mastercard Incorporated, Mastercard International Incorporated, various U.S. financial institution defendants, and the class plaintiffs signed a settlement agreement (the “2012 Settlement Agreement”) to resolve the class plaintiffs’ claims. Pursuant to the 2012 Settlement Agreement, the Company deposited approximately $4.0 billion from the U.S. litigation escrow account and approximately $500 million attributable to interchange reductions for an eight On remand, the district court entered an order appointing interim counsel for two putative classes of plaintiffs, a “Damages Class” and an “Injunctive Relief Class.” The plaintiffs purporting to act on behalf of the putative Damages Class subsequently filed a Third Consolidated Amended Class Action Complaint, seeking money damages and attorneys’ fees, among other relief. A new group of purported class plaintiffs, acting on behalf of the putative Injunctive Relief Class, filed a class action complaint against Visa, Mastercard, and certain bank defendants seeking, among other things, an injunction against the setting of default interchange rates; against certain Visa operating rules relating to merchants, including the honor-all-cards rule; and against various transaction fees, including the fixed acquirer network fee, as well as attorneys’ fees. On September 17, 2018, Visa, Mastercard, and certain U.S. financial institutions reached an agreement with plaintiffs purporting to act on behalf of the putative Damages Class to resolve all Damages Class claims (the “Amended Settlement Agreement”), subject to court approval. The Amended Settlement Agreement supersedes the 2012 Settlement Agreement and includes, among other terms, a release from participating class members for liability arising out of conduct alleged by the Damages Class in the litigation, including claims that accrue no later than five years after the Amended Settlement Agreement becomes final. Participating class members will not release injunctive relief claims as a named representative or non-representative class member in the putative Injunctive Relief Class. The Amended Settlement Agreement also required an additional settlement payment from all defendants totaling $900 million, with the Company’s share of $600 million paid from the Company’s litigation escrow account established pursuant to the Company’s retrospective responsibility plan. See Note 5—U.S. and Europe Retrospective Responsibility Plans. The additional settlement payment was added to the approximately $5.3 billion previously deposited into settlement accounts by the defendants pursuant to the 2012 Settlement Agreement. Following a motion by the Damages Class plaintiffs for final approval of the Amended Settlement Agreement, certain merchants in the proposed settlement class objected to the settlement and/or submitted requests to opt out of the settlement class. On December 13, 2019, the district court granted final approval of the Amended Settlement Agreement relating to claims by the Damages Class, which was subsequently appealed. Based on the percentage of class members (by payment volume) that opted out of the class, $700 million was returned to defendants. Visa’s portion of the takedown payment was calculated to be approximately $467 million, and upon receipt, was deposited into the U.S. litigation escrow account with a corresponding increase in accrued litigation to address opt-out claims. Settlement discussions with plaintiffs purporting to act on behalf of the putative Injunctive Relief Class are ongoing. On January 16, 2019, the bank defendants moved to dismiss the claims brought against them by the Injunctive Relief Class on the grounds that plaintiffs lack standing and failed to state a claim against the bank defendants. 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 May 29, 2020, a complaint was filed by Old Jericho Enterprise, Inc. against Visa and Mastercard on behalf of a purported class of gasoline retailers operating in 24 states and the District of Columbia. The complaint alleges violations of the antitrust laws of those jurisdictions and seeks recovery for plaintiffs as indirect purchasers. To the extent that Plaintiffs’ claims are not released by the Amended Settlement Agreement, Visa believes they are covered by the U.S. Retrospective Responsibility Plan. On June 1, 2020, Visa, jointly with other defendants, served a motion for summary judgment regarding the claims in the Injunctive Relief Class complaint. The putative Injunctive Relief Class plaintiffs served a motion for partial summary judgment. Interchange Multidistrict Litigation (MDL) – Individual Merchant Actions Since May 2013, more than 50 cases have been filed in or removed to various federal district courts by hundreds of merchants generally pursuing damages claims on allegations similar to those raised in MDL 1720. The cases name as defendants Visa Inc., Visa U.S.A., Visa International, Mastercard Incorporated and Mastercard International Incorporated, although some also include certain U.S. financial institutions as defendants. A number of the cases include allegations that Visa has monopolized, attempted to monopolize, and/or conspired to monopolize debit card-related market segments. Some of the cases seek an injunction against the setting of default interchange rates; certain Visa operating rules relating to merchants, including the honor-all-cards rule; and various transaction fees, including the fixed acquirer network fee. In addition, some cases assert that Visa, Mastercard and/or their member banks conspired to prevent the adoption of chip-and-PIN authentication in the U.S. or otherwise circumvent competition in the debit market. Certain individual merchants have filed amended complaints to, among other things, add claims for injunctive relief and update claims for damages. In addition to the cases filed by individual merchants, Visa, Mastercard, and/or certain U.S. financial institution defendants in MDL 1720 filed complaints against certain merchants in the Eastern District of New York seeking, in part, a declaration that Visa’s conduct did not violate federal or state antitrust laws. The individual merchant actions described in this section have been either assigned to the judge presiding over MDL 1720, or have been transferred or are being considered for transfer by the Judicial Panel on Multidistrict Litigation for inclusion in MDL 1720. These individual merchant actions are U.S. covered litigation for purposes of the U.S. retrospective responsibility plan. See Note 5—U.S. and Europe Retrospective Responsibility Plans. Visa has reached settlements with a number of merchants representing approximately 40% of the Visa-branded payment card sales volume of merchants who opted out of the Amended Settlement Agreement with the Damages Class plaintiffs. On June 1, 2020, Visa, jointly with other defendants, served motions for summary judgment regarding the claims in certain of the individual merchant actions, as well as certain declaratory judgment claims brought by Visa, Mastercard, and some U.S. financial institutions. Plaintiffs in certain of the individual merchant actions served motions for partial summary judgment. The Company believes it has substantial defenses to the claims asserted in the putative class actions and individual merchant actions, but the final outcome of individual legal claims is inherently unpredictable. The Company could incur judgments, enter into settlements or revise its expectations regarding the outcome of merchants’ claims, and such developments could have a material adverse effect on the Company’s financial results in the period in which the effect becomes probable and reasonably estimable. While the U.S. retrospective responsibility plan is designed to address monetary liability in these matters, see Note 5—U.S. and Europe Retrospective Responsibility Plans , judgments or settlements that require the Company to change its business practices, rules, or contractual commitments could adversely affect the Company’s financial results. VE Territory Covered Litigation Europe Merchant Litigation Since July 2013, in excess of 550 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, Belgium and Poland primarily relating to interchange rates in Europe and in some cases relating to fees charged by Visa and certain Visa rules. They seek damages for alleged anti-competitive conduct in relation to one or more of the following types of interchange fees for credit and debit card transactions: UK domestic, Irish domestic, other European domestic, intra-European Economic Area and/or other inter-regional. 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. While the amount of interchange being challenged could be substantial, these claims have not yet been filed and their full scope is not yet known. The Company has learned that several additional European entities have indicated that they may also bring similar claims and the Company anticipates additional claims in the future. A trial took place from November 2016 to March 2017, relating to claims asserted by only one Merchant. In judgments published in November 2017 and February 2018, the court found as to that Merchant that Visa’s UK domestic interchange did not restrict competition, but that if it had been found to be restrictive it would not be exemptible under applicable law. In April 2018, the Court of Appeal heard the Merchant’s appeal of the decision alongside two separate Mastercard cases also involving interchange claims. On July 4, 2018, the Court of Appeal overturned the lower court’s rulings, finding that Visa’s UK domestic interchange restricted competition and the question of whether Visa’s UK domestic interchange was exempt from the finding of restriction under applicable law had been incorrectly decided. The Court of Appeal remitted the claim to the lower court to reconsider the exemption issue and the assessment of damages. On November 29, 2018, Visa was granted permission to appeal aspects of the Court of Appeal’s judgment to the Supreme Court of the United Kingdom, including the question of whether Visa’s UK interchange restricted competition. On June 17, 2020, the Supreme Court of the United Kingdom found that Visa’s UK domestic interchange restricted competition under applicable competition law. The case will now continue before the UK Competition Appeals Tribunal to determine the lawful level of interchange and the amount, if any, the plaintiff may be entitled to recover. The full scope of potential damages is not yet known because not all Merchant claims have been served and Visa has substantial defenses. However, the claims that have been issued, served and/or preserved seek several billion dollars in damages. Other Litigation European Commission DCC Investigation In 2013, the European Commission (EC) opened an investigation against Visa Europe, based on a complaint alleging that Visa Europe’s pricing of and rules relating to Dynamic Currency Conversion (DCC) transactions infringe EU competition rules. On October 16, 2020, the EC informed Visa that it has closed the investigation. Canadian Merchant Litigation Beginning in December 2010, a number of class action lawsuits were filed in Quebec, British Columbia, Ontario, Saskatchewan and Alberta against Visa Canada, Mastercard and ten financial institutions on behalf of merchants that accept payment by Visa and/or Mastercard credit cards. The actions allege a violation of Canada’s price-fixing law and various common law claims based on separate Visa and Mastercard conspiracies in respect of default interchange and certain of the networks’ rules. To date, five financial institutions have settled with the plaintiffs. In June 2017, Visa and Mastercard also reached settlements with the plaintiffs. Courts in each of the five provinces approved the settlements and Wal-Mart Canada and/or Home Depot of Canada Inc. filed notices of appeal of the decisions approving the settlements. 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. Wal-Mart Canada and Home Depot of Canada Inc. sought leave to appeal those decisions and the Supreme Court of Canada denied those applications on March 26, 2020 (British Columbia, Quebec and Ontario) and October 29, 2020 (Saskatchewan). An appeal to the Alberta Court of Appeal remains pending. U.S. ATM Access Fee Litigation National ATM Council Class Action . In October 2011, the National ATM Council and thirteen non-bank ATM operators filed a purported class action lawsuit against Visa (Visa Inc., Visa International, Visa U.S.A. and Plus System, Inc.) and Mastercard in the U.S. District Court for the District of Columbia. The complaint challenges Visa’s rule (and a similar Mastercard rule) that if an ATM operator chooses to charge consumers an access fee for a Visa or Plus transaction, that fee cannot be greater than the access fee charged for transactions on other networks. Plaintiffs claim that the rule violates Section 1 of the Sherman Act, and seek treble damages, injunctive relief, and attorneys’ fees. On September 20, 2019, plaintiffs filed a motion for class certification. Consumer Class Actions . In October 2011, a purported consumer class action was filed against Visa and Mastercard in the same federal court challenging the same ATM access fee rules. Two other purported consumer class actions challenging the rules, later combined, were also filed in October 2011 in the same federal court naming Visa, Mastercard and three financial institutions as defendants. Plaintiffs seek treble damages, restitution, injunctive relief, and attorneys’ fees where available under federal and state law, including under Section 1 of the Sherman Act and consumer protection statutes. On September 20, 2019, plaintiffs in both cases filed motions for class certification. On October 5, 2020, plaintiffs in the case naming three financial institutions as defendants filed a motion for preliminary approval of a class action settlement reached with those financial institution defendants. U.S. Department of Justice Civil Investigative Demand On March 13, 2012, the Antitrust Division of the United States Department of Justice (the “Division”) issued a Civil Investigative Demand, or “CID,” to Visa Inc. seeking documents and information regarding a potential violation of Section 1 or 2 of the Sherman Act, 15 U.S.C. §§ 1, 2. The CID focuses on PIN-Authenticated Visa Debit and Visa’s competitive responses to the Dodd-Frank Act, including Visa’s fixed acquirer network fee. Visa is cooperating with the Division in connection with the CID. Pulse Network On November 25, 2014, Pulse Network LLC filed suit against Visa Inc. in federal district court in Texas. Pulse alleges that Visa has, among other things, monopolized and attempted to monopolize debit card network services markets. Pulse seeks unspecified treble damages, attorneys’ fees and injunctive relief, including to enjoin the fixed acquirer network fee structure, Visa’s conduct regarding PIN-Authenticated Visa Debit and Visa agreements with merchants and acquirers relating to debit acceptance. On August 31, 2018, the court granted Visa’s motion for summary judgment, finding that Pulse did not have standing to pursue its claims. Pulse appealed the district court’s summary judgment decision to the U.S. Court of Appeals for the Fifth Circuit, which held oral argument on October 9, 2019. On June 5, 2020, the U.S. Court of Appeals for the Fifth Circuit set the case for re-argument. EMV Chip Liability Shift Following their initial complaint filed on March 8, 2016, B&R Supermarket, Inc., d/b/a Milam’s Market, and Grove Liquors LLC filed an amended class action complaint on July 15, 2016, against Visa Inc., Visa U.S.A., Mastercard, Discover, American Express, EMVCo and certain financial institutions in the U.S. District Court for the Northern District of California. The amended complaint asserts that defendants, through EMVCo, conspired to shift liability for fraudulent, faulty or otherwise rejected payment card transactions from defendants to the purported class of merchants, defined as those merchants throughout the U.S. who have been subjected to the “Liability Shift” since October 2015. Plaintiffs claim that the so-called “Liability Shift” violates Sections 1 and 3 of the Sherman Act and certain state laws, and seek treble damages, injunctive relief and attorneys’ fees. EMVCo and the financial institution defendants were dismissed, and the matter was subsequently transferred to the U.S. District Court for the Eastern District of New York, which has clarified that this case is not part of MDL 1720. On August 28, 2020, the district court granted plaintiffs’ motion for class certification, and on September 11, 2020, defendants sought permission from the U.S. Court of Appeals for the Second Circuit to appeal the decision. Australian Competition & Consumer Commission On July 12, 2019, the Australian Competition & Consumer Commission (ACCC) informed Visa that the ACCC has commenced an investigation into certain agreements and interchange fees relating to Visa Debit. Visa is cooperating with the ACCC. Federal Trade Commission Civil Investigative Demand (Formerly Voluntary Access Letter) On November 4, 2019, the Bureau of Competition of the United States Federal Trade Commission (the “Bureau”) requested that Visa provide, on a voluntary basis, documents and information for an investigation as to whether Visa’s actions inhibited merchant choice in the selection of debit payments networks in potential violation of the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act. On June 9, 2020, the Federal Trade Commission issued a Civil Investigative Demand to Visa requesting additional documents and information, and Visa is cooperating with the Bureau. 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. European Commission Staged Digital Wallets Investigation On June 26, 2020, the European Commission (“EC”) informed Visa that it has opened a preliminary investigation into Visa’s rules regarding staged digital wallets and issued a request for information regarding such rules. Visa is cooperating with the EC. Plaid Inc. Acquisition On November 5, 2020, the U.S. Department of Justice filed a complaint in the U.S. District Court for the Northern District of California seeking a permanent injunction to prevent Visa from acquiring Plaid Inc., alleging that the proposed acquisition would substantially lessen competition in violation of Section 7 of the Clayton Act and would constitute monopolization under Section 2 of the Sherman Act. Visa intends to vigorously defend the lawsuit. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Organization. Visa Inc. (“Visa” or the “Company”) is a global payments technology company that enables innovative, 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 network — VisaNet — which facilitates authorization, clearing and settlement of payment transactions and enables the Company to provide its financial institution and seller 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 of 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 | Consolidation and basis of presentation . The 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 consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation. The Company’s activities are interrelated, and each activity is dependent upon and supportive of the other. All significant operating decisions are based on analysis of Visa as a single global business. Accordingly, the Company has one reportable segment, Payment Services. |
Use of estimates | Use of estimates . The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Future actual results could differ materially from these estimates. The worldwide spread of coronavirus (“COVID-19”) has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 continues to impact the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. The use of estimates in specific accounting policies is described further below as appropriate. |
Cash, cash equivalents, restricted cash, and restricted cash equivalents | Cash, cash equivalents, restricted cash, and restricted cash equivalents . 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. See Note 4—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents. Restricted cash equivalents—U.S. litigation escrow . The Company maintains an escrow account from which monetary liabilities from settlements of, or judgments in, the U.S. covered litigation are paid. See Note 5—U.S. and Europe Retrospective Responsibility Plans and Note 20—Legal Matters for a discussion of the U.S. covered litigation. The escrow funds are held in money market investments, together with the interest earned, less applicable taxes payable, and classified as restricted cash equivalents on the consolidated balance sheets. Interest earned on escrow funds is included in non-operating income (expense) on the consolidated statements of operations. |
Investments and fair value, marketable equity securities, available-for-sale debt securities, non-marketable equity securities | Investments and fair value. The Company measures certain assets and liabilities at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are reported under a three-level valuation hierarchy. See Note 6—Fair Value Measurements and Investments. Marketable equity securities. Marketable equity securities, which are reported in investment securities on the consolidated balance sheets, include mutual fund investments related to various employee compensation and benefit plans. Trading activity in these investments is at the direction of the Company’s employees. These investments are held in a trust and are not available for the Company’s operational or liquidity needs. Interest and dividend income as well as gains and losses, realized and unrealized, from changes in fair value are recorded in non-operating income (expense), and offset in personnel expense on the consolidated statements of operations. Available-for-sale debt securities. The Company’s investment in debt securities, which are classified as available-for-sale and reported in investment securities on the consolidated balance sheets, include U.S. government-sponsored debt securities and U.S. Treasury securities. These securities are recorded at cost at the time of purchase and are carried at fair value. The Company considers these securities to be available-for-sale to meet working capital and liquidity needs. Investments with original maturities of greater than 90 days and stated maturities of less than one year from the balance sheet date, or investments that the Company intends to sell within one year, are classified as current assets, while all other securities are classified as non-current assets. Unrealized gains and losses are reported in accumulated other comprehensive income (loss) on the consolidated balance sheets until realized. The specific identification method is used to calculate realized gain or loss on the sale of securities, which is recorded in non-operating income (expense) on the consolidated statements of operations. Interest income is recognized when earned and is included in non-operating income (expense) on the consolidated statements of operations. The Company evaluates its debt securities for other-than-temporary impairment (“OTTI”) on an ongoing basis. When there has been a decline in fair value of a debt security below the amortized cost basis, the Company recognizes OTTI if: (1) it has the intent to sell the security; (2) it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis; or (3) it does not expect to recover the entire amortized cost basis of the security. Non-marketable equity securities. The Company’s non-marketable equity securities, which are reported in other assets on the consolidated balance sheets, include investments in privately held companies without readily determinable market values. The Company adjusts the carrying value of its non-marketable equity securities to fair value when transactions for identical or similar investments of the same issuer are observable. All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in non-operating income (expense). The Company applies the equity method of accounting for investments in other entities when it holds between 20% and 50% ownership in the entity or when it exercises significant influence. Under the equity method, the Company’s share of each entity’s profit or loss is reflected in non-operating income (expense) on the consolidated statements of operations. The equity method of accounting is also used for flow-through entities such as limited partnerships and limited liability companies when the investment ownership percentage is equal to or greater than 5% of outstanding ownership interests, regardless of whether the Company has significant influence over the investees. The Company applies the fair value measurement alternative for investments in other entities when it holds less than 20% ownership in the entity and does not exercise significant influence, or for flow-through entities when the investment ownership is less than 5% and the Company does not exercise significant influence. These investments consist of equity holdings in non-public companies and are recorded in other assets on the consolidated balance sheets. The Company regularly reviews investments accounted for under the equity method and the fair value measurement alternative for possible impairment, which generally involves an analysis of the facts and changes in circumstances influencing the investment, expectations of the entity’s cash flows and capital needs, and the viability of its business model. |
Financial instruments | Financial instruments. The Company considers the following to be financial instruments: cash, cash equivalents, restricted cash, restricted cash equivalents, investment securities, settlement receivable and payable, accounts receivable, customer collateral, non-marketable equity investments and derivative instruments. |
Settlement receivable and payable | Settlement receivable and payable . The Company operates systems for authorizing, clearing and settling payment transactions worldwide. Most U.S. dollar settlements with the Company’s financial institution clients are settled within the same day and do not result in a receivable or payable balance. Settlements in currencies other than the U.S. dollar generally remain outstanding for one to two business days, resulting in amounts due from and to clients. These amounts are presented as settlement receivable and settlement payable on the consolidated balance sheets. |
Customer collateral | Customer collateral. The Company holds cash deposits and other non-cash assets from certain clients in order to ensure their performance of settlement obligations arising from Visa payment services are processed in accordance with the Company’s operating rules. The cash collateral assets are restricted and fully offset by corresponding liabilities and both balances are presented on the consolidated balance sheets. Pledged securities are held by a custodian in an account under the Company’s name and ownership; however, the Company does not have the right to repledge these securities, but may sell these securities in the event of default by the client on its settlement obligations. Letters of credit are provided primarily by client financial institutions to serve as irrevocable guarantees of payment. Guarantees are provided primarily by parent financial institutions to secure the obligations of their subsidiaries. The Company routinely evaluates the financial viability of institutions providing the letters of credit and guarantees. |
Guarantees and indemnifications | Guarantees and indemnifications. The Company recognizes an obligation at inception for guarantees and indemnifications that qualify for recognition, regardless of the probability of occurrence. The Company indemnifies its financial institution clients for settlement losses suffered due to the failure of any other client to fund its settlement obligations in accordance with the Visa operating rules. The estimated fair value of the liability for settlement indemnification is included in accrued liabilities on the consolidated balance sheets |
Property, equipment and technology, net | Property, equipment and technology, net . Property, equipment and technology are recorded at historical cost less accumulated depreciation and amortization, which are computed on a straight-line basis over the asset’s estimated useful life. Depreciation and amortization of technology, furniture, fixtures and equipment are computed over estimated useful lives ranging from 2 to 10 years. Leasehold improvements are amortized over the shorter of the useful life of the asset or lease term. Building improvements are depreciated between 3 and 40 years, and buildings are depreciated over 40 years. Improvements that increase functionality of the asset are capitalized and depreciated over the asset’s remaining useful life. Land and construction-in-progress are not depreciated. Fully depreciated assets are retained in property, equipment and technology, net, until removed from service. Technology includes purchased and internally developed software, including technology assets obtained through acquisitions. Internally developed software represents software primarily used by the VisaNet electronic payments network. Internal and external costs incurred during the preliminary project stage are expensed as incurred. Qualifying costs incurred during the application development stage are capitalized. Once the project is substantially complete and ready for its intended use these costs are amortized on a straight-line basis over the technology’s estimated useful life. Acquired technology assets are initially recorded at fair value and amortized on a straight-line basis over the estimated useful life. |
Leases | Leases . 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. |
Intangible assets, net | Intangible assets, net . The Company records identifiable intangible assets at fair value on the date of acquisition and evaluates the useful life of each asset. Finite-lived intangible assets primarily consist of customer relationships, reseller relationships and trade names obtained through acquisitions. Finite-lived intangible assets are amortized on a straight-line basis and are tested for recoverability if events or changes in circumstances indicate that their carrying amounts may not be recoverable. These intangibles have useful lives ranging from 3 to 15 years. No events or changes in circumstances indicate that impairment existed as of September 30, 2020. See Note 8—Intangible Assets and Goodwill . Indefinite-lived intangible assets consist of trade name, customer relationships and reacquired rights. Intangible assets with indefinite useful lives are not amortized but are evaluated for impairment annually or more frequently if events or changes in circumstances indicate that impairment may exist. The Company first assesses qualitative factors to determine whether it is necessary to perform a quantitative impairment test for indefinite-lived intangible assets. The Company assesses each category of indefinite-lived intangible assets for impairment on an aggregate basis, which may require the allocation of cash flows and/or an estimate of fair value to the assets or asset group. Impairment exists if the fair value of the indefinite-lived intangible asset is less than the carrying value. The Company relies on a number of factors when completing impairment assessments, including a review of discounted net future cash flows, business plans and the use of present value techniques. The Company completed its annual impairment review of indefinite-lived intangible assets as of February 1, 2020, and concluded there was no impairment as of that date. No recent events or changes in circumstances indicate that impairment of the Company’s indefinite-lived intangible assets existed as of September 30, 2020. |
Goodwill | Goodwill . Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Goodwill is not amortized but is evaluated for impairment at the reporting unit level annually or more frequently if events or changes in circumstances indicate that impairment may exist. The Company evaluated its goodwill for impairment as of February 1, 2020, and concluded there was no impairment as of that date. No recent events or changes in circumstances indicate that impairment existed as of September 30, 2020. |
Accrued litigation | Accrued litigation. The Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which it is a party and records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These judgments are subjective, based on the status of such legal or regulatory proceedings, the merits of the Company’s defenses and consultation with corporate and external legal counsel. Actual outcomes of these legal and regulatory proceedings may differ materially from the Company’s estimates. The Company expenses legal costs as incurred in professional fees in the consolidated statements of operations. |
Revenue recognition | Revenue recognition . The Company adopted Accounting Standards Update (ASU) 2014-09 effective October 1, 2018 using the modified retrospective transition method. Results for reporting periods beginning after October 1, 2018 are presented under the new revenue standard. The comparative prior period amounts appearing on the financial statements have not been restated and continue to be reported under the prior revenue standard. The Company’s net revenues are comprised principally of the following categories: service revenues, data processing revenues, international transaction revenues and other revenues, reduced by client incentives. As a payment network service provider, the Company’s obligation to the customer is to stand ready to provide continuous access to our payment network over the contractual term. Consideration is variable based primarily upon the amount and type of transactions and payments volume on Visa’s products. The Company recognizes revenue, net of sales and other similar taxes, as the payment network services are performed in an amount that reflects the consideration the Company expects to receive in exchange for those services. Fixed fees for payment network services are generally recognized ratably over the related service period. The Company has elected the optional exemption to not disclose the remaining performance obligations related to payment network services and other performance obligations which are constrained by and dependent upon the future performance of its clients, which are variable in nature. The Company also recognizes revenues, net of sales and other similar taxes, from other value added services, including issuer and consumer solutions, merchant and acquirer solutions, fraud management and security services, data products, and consulting and analytics, as these value added services are performed. Service revenues consist mainly of revenues earned for services provided in support of client usage of Visa payment services. Current quarter service revenues are primarily assessed using a calculation of current quarter’s pricing applied to the prior quarter’s payments volume. The Company also earns revenues from assessments designed to support ongoing acceptance and volume growth initiatives, which are recognized in the same period the related volume is transacted. Data processing revenues consist of revenues earned for authorization, clearing, settlement, value added services, network access and other maintenance and support services that facilitate transaction and information processing among the Company’s clients globally. Data processing revenues are recognized in the same period the related transactions occur or services are performed. International transaction revenues are earned for cross-border transaction processing and currency conversion activities. Cross-border transactions arise when the country of origin of the issuer or financial institution originating the transaction is different from that of the beneficiary. International transaction revenues are recognized in the same period the cross-border transactions occur or services are performed. |
Client incentives | Client incentives. The Company enters into long-term contracts with financial institution clients, merchants and strategic partners for various programs designed to increase revenue by growing payments volume, increasing Visa product acceptance, winning merchant routing transactions over to Visa’s network and driving innovation. These incentives are primarily accounted for as reductions to revenues. Client incentives are accounted for as operating expenses if the payment is in exchange for a distinct good or service provided by the customer. The Company generally capitalizes upfront and fixed incentive payments under these agreements and amortizes the amounts as a reduction to revenues ratably over the contractual term. Incentives that are earned by the customer based on performance targets are recorded as reductions to revenues based on management's estimate of each client's future performance. These accruals are regularly reviewed and estimates of performance are adjusted, as appropriate, based on changes in performance expectations, actual client performance, amendments to existing contracts or the execution of new contracts. |
Marketing | Marketing. The Company expenses costs for the production of advertising as incurred. The cost of media advertising is expensed when the advertising takes place. Sponsorship costs are recognized over the period in which the Company benefits from the sponsorship rights. Promotional items are expensed as incurred, when the related services are received, or when the related event occurs. |
Income taxes | Income taxes . The Company’s income tax expense consists of two components: current and deferred. Current income tax expense represents taxes paid or payable for the current period. Deferred tax assets and liabilities are recognized to reflect the future tax consequences attributable to temporary differences between the financial statement carrying amounts and the respective tax basis of existing assets and liabilities, and operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing whether deferred tax assets are realizable, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. A valuation allowance is recorded for the portions that are not expected to be realized based on the level of historical taxable income, projections of future taxable income over the periods in which the temporary differences are deductible, and qualifying tax planning strategies. |
Pension and other postretirement benefit plans | Pension and other postretirement benefit plans . The Company’s defined benefit pension and other postretirement benefit plans are actuarially evaluated, incorporating various critical assumptions including the discount rate and the expected rate of return on plan assets (for qualified pension plans). The discount rate is based on a cash flow matching analysis, with the projected benefit payments matching spot rates from a yield curve developed from high-quality corporate bonds. The expected rate of return on pension plan assets is primarily based on the targeted allocation, and evaluated for reasonableness by considering such factors as: (i) actual return on plan assets; (ii) historical rates of return on various asset classes in the portfolio; (iii) projections of returns on various asset classes; and (iv) current and prospective capital market conditions and economic forecasts. Any difference between actual and expected plan experience, including asset return experience, in excess of a 10% corridor is recognized in net periodic pension cost over the expected average employee future service period, which ranges from approximately 6 to 10 years for the U.S. and non-U.S. pension plans. Other assumptions involve demographic factors such as retirement age, mortality, attrition and the rate of compensation increases. The Company evaluates assumptions annually and modifies them as appropriate. |
Foreign currency remeasurement and translation | Foreign currency remeasurement and translation . The Company’s functional currency is the U.S. dollar for the majority of its foreign operations except for Visa Europe whose functional currency is the euro. Transactions denominated in currencies other than the applicable functional currency are converted to the functional currency at the exchange rate on the transaction date. At period end, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet dates. Non-monetary assets and liabilities are remeasured at historical exchange rates. Resulting foreign currency transaction gains and losses related to conversion and remeasurement are recorded in general and administrative expense in the consolidated statements of operations and were not material for fiscal 2020, 2019 and 2018. |
Derivative financial instruments | Derivative financial instruments . The Company uses foreign exchange forward derivative contracts to reduce its exposure to foreign currency rate changes on forecasted non-functional currency denominated operational cash flows. The terms of these derivative contracts designated as cash flow hedges are generally less than 12 months. To qualify for cash flow hedge accounting treatment, the Company formally documents, at inception of the hedge, all relationships between the hedging transactions and the hedged items, as well as the Company’s risk management objective and strategy for undertaking various hedging transactions. The Company also formally assesses whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items and whether those derivatives may be expected to remain highly effective in future periods. Derivatives are carried at fair value on a gross basis on the consolidated balance sheets. Gains and losses resulting from changes in fair value of derivative instruments designated as cash flow hedges are accounted for either in accumulated other comprehensive income (loss) on the consolidated balance sheets, or in the consolidated statements of operations in the corresponding account where revenue or expense is recorded. Gains and losses resulting from changes in fair value of derivative instruments not designated for hedge accounting are recorded in general and administrative expense for hedges of operating activity, or non-operating income (expense) for hedges of non-operating activity. Gains and losses related to changes in fair value hedges are recognized in non-operating income (expense) along with a corresponding loss or gain related to the change in value of the underlying hedged item in the same line item in the consolidated statement of operations. The change in value of net investment hedges are recorded in other comprehensive income (loss). Amounts excluded from the effectiveness testing of net investment hedges are recognized in non-operating income (expense). Cash flows associated with derivatives designated as a fair value hedge may be included in operating, investing or financing activities on the consolidated statement of cash flows, depending on the classification of the items being hedged. Cash flows associated with financial instruments designated as net investment hedges are classified as an investing activity. See Note 13—Derivative Financial Instruments . |
Share-based compensation | Share-based compensation. The Company recognizes share-based compensation cost, net of estimated forfeitures, using the fair value method of accounting. The Company recognizes compensation cost for awards with only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period. Compensation cost for performance-based awards is recognized on a graded-vesting basis. The amount is initially estimated based on target performance and is adjusted as appropriate based on management’s best estimate throughout the performance period. |
Earnings per share | Earnings per share. The Company calculates earnings per share using the two-class method to reflect the different rights of each class and series of outstanding common stock. The dilutive effect of incremental common stock equivalents is reflected in diluted earnings per share by application of the treasury stock method. |
Recently Issued Accounting Pronouncements | Recently Issued 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 lease standard that address the transition methods available and clarify the guidance for lessor costs and other aspects of the new lease 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 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 on December 22, 2017, 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 June 2016, the FASB issued ASU 2016-13, and also issued subsequent amendments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. The amendments in the ASU are effective for the Company on October 1, 2020. The Company is evaluating the impact ASU 2016-13 will have on its 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. In March 2020, the FASB issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform. The amendments in the ASU are effective for the Company upon issuance through December 31, 2022. The Company is evaluating the effect ASU 2020-04 will have on its consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Final Purchase Price Allocation | The following table summarizes the purchase price allocation in aggregate for the businesses acquired: Purchase Price Allocation (in millions) Net tangible assets acquired (liabilities assumed) $ 23 Intangible assets 319 Goodwill 647 Total (1) $ 989 |
Schedule of Identified Intangible Assets Acquired | The following table summarizes the identified intangible assets acquired based on the purchase price allocations: Acquisition Date Fair Value Weighted-Average Useful Life (in millions) (in years) Developed technologies $ 70 4 Customer relationships 249 12 Total $ 319 10 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following tables disaggregate the Company’s net revenues by revenue category and by geography for the years ended September 30, 2020, 2019, and 2018: For the Years Ended 2020 2019 2018 (in millions) Service revenues $ 9,804 $ 9,700 $ 8,918 Data processing revenues 10,975 10,333 9,027 International transaction revenues 6,299 7,804 7,211 Other revenues 1,432 1,313 944 Client incentives (6,664) (6,173) (5,491) Net revenues $ 21,846 $ 22,977 $ 20,609 For the Years Ended September 30, 2020 2019 2018 (in millions) U.S. $ 10,125 $ 10,279 $ 9,332 International 11,721 12,698 11,277 Net revenues $ 21,846 $ 22,977 $ 20,609 |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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: September 30, 2020 2019 2018 (in millions) Cash and cash equivalents $ 16,289 $ 7,838 $ 8,162 Restricted cash and restricted cash equivalents: U.S. litigation escrow 901 1,205 1,491 Customer collateral 1,850 1,648 1,324 Prepaid expenses and other current assets 131 141 — Cash, cash equivalents, restricted cash and restricted cash equivalents $ 19,171 $ 10,832 $ 10,977 |
U.S. and Europe Retrospective_2
U.S. and Europe Retrospective Responsibility Plans (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 by fiscal year: 2020 2019 (in millions) Balance at beginning of period $ 1,205 $ 1,491 Return of takedown payment to the litigation escrow account 467 — Deposits into the litigation escrow account — 300 Payments to class plaintiffs’ settlement fund (1) — (600) Payments to opt-out merchants (1) and interest earned on escrow funds (771) 14 Balance at end of period $ 901 $ 1,205 (1) These payments are associated with the interchange multidistrict litigation. See Note 20—Legal Matters . |
Changes in Preferred Stock and Right to Recover for Covered Losses | The following table sets forth the activities related to VE territory covered losses in preferred stock and “right to recover for covered losses” within stockholders’ equity during the year ended September 30, 2020: Preferred Stock Right to Recover for Covered Losses UK&I Europe (in millions) Balance as of September 30, 2019 $ 2,285 $ 3,177 $ (171) VE territory covered losses incurred (1) — — (37) Recovery through conversion rate adjustment (2) (72) (92) 169 Fourth anniversary release (1,107) (1,542) — Balance as of September 30, 2020 $ 1,106 $ 1,543 $ (39) (1) VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 20—Legal Matters . (2) Adjustment to right to recover for covered losses for the conversion rate adjustment differs from the actual recovered amount due to differences in foreign exchange rates between the time the losses were incurred and the subsequent recovery through the conversion rate adjustment. |
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 September 30, 2020 and 2019: September 30, 2020 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 $ 3,168 $ 1,106 $ 5,519 $ 2,285 Europe preferred stock 4,331 1,543 7,539 3,177 Total 7,499 2,649 13,058 5,462 Less: right to recover for covered losses (39) (39) (171) (171) Total recovery for covered losses available $ 7,460 $ 2,610 $ 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 September 30, 2020; (b) 6.387 and 6.861, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2020; and (c) $199.97, Visa’s class A common stock closing stock price as of September 30, 2020. (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 outstanding, respectively, as of September 30, 2019; 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) | 12 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair Value Measurements at September 30 Level 1 Level 2 2020 2019 2020 2019 (in millions) Assets Cash equivalents and restricted cash equivalents: Money market funds $ 12,522 $ 6,494 $ — $ — U.S. government-sponsored debt securities — — 1,469 150 U.S. Treasury securities 650 — — — Investment securities: Marketable equity securities 148 126 — — U.S. government-sponsored debt securities — — 2,582 5,592 U.S. Treasury securities 1,253 675 — — Other current and non-current assets: Derivative instruments — — 512 437 Total $ 14,573 $ 7,295 $ 4,563 $ 6,179 Liabilities Accrued compensation and benefits: Deferred compensation liability $ 135 $ 113 $ — $ — Accrued and other liabilities: Derivative instruments — — 181 52 Total $ 135 $ 113 $ 181 $ 52 |
Schedule of Amortized Cost, Unrealized Gains and Losses, and Fair Value of Debt Securities | The amortized cost, unrealized gains and losses and fair value of debt securities were as follows: September 30, 2020 2019 Amortized Gross Unrealized Fair Amortized Gross Unrealized Fair Gains Losses Gains Losses (in millions) U.S. government-sponsored debt securities $ 2,581 $ 1 $ — $ 2,582 $ 5,590 $ 4 $ (2) $ 5,592 U.S. Treasury securities 1,251 2 — 1,253 672 3 — 675 Total $ 3,832 $ 3 $ — $ 3,835 $ 6,262 $ 7 $ (2) $ 6,267 Less: current portion $ (3,604) $ (4,110) Long-term debt securities $ 231 $ 2,157 |
Debt Security Investments Classified by Contractual Maturity Date | Debt securities are presented below in accordance with their stated maturities. A portion of these investments are classified as non-current as they have stated maturities of more than one year from the balance sheet date. However, these investments are generally available to meet short-term liquidity needs. September 30, (in millions) Due within one year $ 3,604 Due after 1 year through 5 years 231 Total $ 3,835 |
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 September 30, 2020 including cumulative unrealized gains and losses: September 30, (in millions) Initial cost basis $ 841 Adjustments: Upward adjustments 212 Downward adjustments (including impairment) (11) Carrying amount, end of period $ 1,042 |
Investment Income | Investment income is recorded as non-operating income (expense) in the Company’s consolidated statements of operations and consisted of the following: For the Years Ended 2020 2019 2018 (in millions) Interest and dividend income on cash and investments $ 80 $ 247 $ 173 Realized gains (losses), net on debt securities 4 1 — Equity securities: Unrealized gains (losses), net 115 117 2 Realized gains (losses), net from donation — — 193 Realized gains (losses), net 1 18 102 Investment income $ 200 $ 383 $ 470 |
Property, Equipment and Techn_2
Property, Equipment and Technology, Net (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, equipment and technology, net, consisted of the following: September 30, 2020 2019 (in millions) Land $ 71 $ 71 Buildings and building improvements 1,007 965 Furniture, equipment and leasehold improvements 1,997 1,913 Construction-in-progress 163 180 Technology 3,923 3,441 Total property, equipment and technology 7,161 6,570 Accumulated depreciation and amortization (4,424) (3,875) Property, equipment and technology, net $ 2,737 $ 2,695 |
Estimated future amortization expense on technology | At September 30, 2020, estimated future amortization expense on technology is as follows: For the Years Ending September 30, 2021 2022 2023 2024 2025 Thereafter Total (in millions) Estimated future amortization expense $ 419 $ 313 $ 225 $ 142 $ 62 $ 24 $ 1,185 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets by Major Class | Indefinite-lived and finite-lived intangible assets consisted of the following: September 30, 2020 2019 Gross Accumulated Net Gross Accumulated Net (in millions) Finite-lived intangible assets: Customer relationships $ 709 $ (376) $ 333 $ 701 $ (314) $ 387 Trade names 199 (134) 65 199 (120) 79 Reseller relationships 95 (89) 6 95 (86) 9 Other 17 (14) 3 17 (13) 4 Total finite-lived intangible assets 1,020 (613) 407 1,012 (533) 479 Indefinite-lived intangible assets: Customer relationships and reacquired rights 23,317 — 23,317 22,217 — 22,217 Visa trade name 4,084 — 4,084 4,084 — 4,084 Total indefinite-lived intangible assets 27,401 — 27,401 26,301 — 26,301 Total intangible assets $ 28,421 $ (613) $ 27,808 $ 27,313 $ (533) $ 26,780 |
Schedule of Estimated Future Amortization Expense | At September 30, 2020, estimated future amortization expense on finite-lived intangible assets is as follows: For the Years Ending September 30, 2021 2022 2023 2024 2025 Thereafter Total (in millions) Estimated future amortization expense $ 81 $ 76 $ 52 $ 50 $ 40 $ 108 $ 407 |
Schedule of Goodwill | The change in goodwill during the years ended September 30, 2020 and 2019 are as follows: 2020 2019 (in millions) Goodwill, beginning of period $ 15,656 $ 15,194 Goodwill from acquisitions, net of adjustments 48 643 Foreign currency translation 206 (181) Goodwill, end of period $ 15,910 $ 15,656 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Present Value of Future Minimum Lease Payments | At September 30, 2020, the present value of future minimum lease payments was as follows: September 30, (in millions) 2021 $ 108 2022 103 2023 95 2024 82 2025 70 Thereafter 163 Total undiscounted lease payments 621 Less: imputed interest (51) Present value of lease liabilities $ 570 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Outstanding debt | The Company had outstanding debt as follows: September 30, 2020 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 % 1.90% Senior Notes due April 2027 1,500 — 2.02 % 0.75% Senior Notes due August 2027 500 — 0.84 % 2.75% Senior Notes due September 2027 750 750 2.91 % 2.05% Senior Notes due April 2030 1,500 — 2.13 % 1.10% Senior Notes due February 2031 1,000 — 1.20 % 4.15% Senior Notes due December 2035 1,500 1,500 4.23 % 2.70% Senior Notes due April 2040 1,000 — 2.80 % 4.30% Senior Notes due December 2045 3,500 3,500 4.37 % 3.65% Senior Notes due September 2047 750 750 3.73 % 2.00% Senior Notes due August 2050 1,750 — 2.09 % Total debt 24,000 16,750 Unamortized discounts and debt issuance costs (178) (108) Hedge accounting fair value adjustments (2) 248 87 Total carrying value of debt $ 24,070 $ 16,729 Reported as: Current maturities of debt $ 2,999 $ — Long-term debt 21,071 16,729 Total carrying value of debt $ 24,070 $ 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. See Note 1—Summary of Significant Accounting Policies and Note 13—Derivative Financial Instruments . |
Future Principal Payments on Outstanding Debt | At September 30, 2020, future principal payments on the Company’s outstanding debt were as follows: For the Years Ending September 30, 2021 2022 2023 2024 2025 Thereafter Total (in millions) Future principal payments $ 3,000 $ 1,000 $ 2,250 $ — $ — $ 17,750 $ 24,000 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Change in benefit obligations and plan assets | A reconciliation of pension benefit obligations, plan assets, funded status and amounts recognized in the Company’s consolidated balance sheets were as follows: U.S. Plans Non-U.S. Plans September 30, September 30, 2020 2019 2020 2019 (in millions) Change in pension benefit obligation: Benefit obligation at beginning of period $ 919 $ 844 $ 528 $ 452 Service cost — — 4 4 Interest cost 28 32 10 13 Actuarial loss (gain) 37 95 11 109 Benefit payments (64) (52) (17) (22) Plan amendment — — — 1 Foreign currency exchange rate changes — — 27 (29) Benefit obligation at end of period $ 920 $ 919 $ 563 $ 528 Accumulated benefit obligation $ 920 $ 919 $ 563 $ 528 Change in plan assets: Fair value of plan assets at beginning of period $ 1,090 $ 1,090 $ 490 $ 436 Actual return on plan assets 114 52 5 93 Company contribution 2 — 22 10 Benefit payments (64) (52) (17) (22) Foreign currency exchange rate changes — — 25 (27) Fair value of plan assets at end of period $ 1,142 $ 1,090 $ 525 $ 490 Funded status at end of period $ 222 $ 171 $ (38) $ (38) Recognized in consolidated balance sheets: Non-current asset $ 229 $ 178 $ — $ — Current liability (1) (1) — — Non-current liability (6) (6) (38) (38) Funded status at end of period $ 222 $ 171 $ (38) $ (38) |
Amounts recognized in accumulated other comprehensive income (loss) before tax | Amounts recognized in accumulated other comprehensive income (loss) before tax consist of the following: U.S. Plans Non-U.S. Plans September 30, September 30, 2020 2019 2020 2019 (in millions) Net actuarial loss $ 135 $ 154 $ 93 $ 70 |
Benefit obligations in excess of plan assets | Benefit obligations in excess of plan assets were as follows: U.S. Plans Non-U.S. Plans September 30, September 30, 2020 2019 2020 2019 (in millions) Accumulated benefit obligation in excess of plan assets Accumulated benefit obligation at end of period $ (7) $ (7) $ (563) $ (528) Fair value of plan assets at end of period $ — $ — $ 525 $ 490 Projected benefit obligation in excess of plan assets Benefit obligation at end of period $ (7) $ (7) $ (563) $ (528) Fair value of plan assets at end of period $ — $ — $ 525 $ 490 |
Net periodic benefit cost | Net periodic benefit cost consist of the following: U.S. Plans Non-U.S. Plans For the Years Ended September 30, 2020 2019 2018 2020 2019 2018 (in millions) Service cost $ — $ — $ — $ 4 $ 4 $ 4 Interest cost 28 32 32 10 13 12 Expected return on assets (72) (71) (70) (15) (18) (20) Amortization of actuarial loss 6 — — 2 — — Settlement loss 8 7 3 — — — Total net periodic benefit cost $ (30) $ (32) $ (35) $ 1 $ (1) $ (4) |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) consist of the following: U.S. Plans Non-U.S. Plans For the Years Ended September 30, 2020 2019 2018 2020 2019 2018 (in millions) Current year actuarial loss (gain) $ (5) $ 114 $ (47) $ 21 $ 27 $ 30 Amortization of actuarial (loss) gain (14) (7) (3) (2) — — Current year prior service cost — — — — 1 — Total recognized in other comprehensive income (loss) $ (19) $ 107 $ (50) $ 19 $ 28 $ 30 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (49) $ 75 $ (85) $ 20 $ 27 $ 26 |
Weighted average actuarial assumptions | Weighted-average actuarial assumptions used to estimate the benefit obligation and net periodic benefit cost were as follows: U.S. Plans Non-U.S. Plans For the Years Ended September 30, 2020 2019 2018 2020 2019 2018 Discount rate for benefit obligation: Pension 2.88 % 3.26 % 4.23 % 1.60 % 1.80 % 2.90 % Discount rate for net periodic benefit cost: Pension 3.27 % 4.23 % 3.84 % 1.80 % 2.90 % 2.70 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % 3.00 % 3.00 % 4.25 % Rate of increase (1) in compensation levels for: Benefit obligation NA NA NA 2.50 % 2.50 % 3.20 % Net periodic benefit cost NA NA NA 2.50 % 2.50 % 3.20 % (1) This assumption is not applicable for the U.S. plans due to the amendment of the U.S. qualified defined benefit pension plan in October 2015, which discontinued the employer provided credits effective after December 31, 2015. |
Pension plan investments at fair value | The following tables set forth by level, within the fair value hierarchy, the pension plans’ investments at fair value as of September 30, 2020 and 2019, including the impact of transactions that were not settled at the end of September: U.S. Plans Fair Value Measurements at September 30 Using Inputs Considered as Level 1 Level 2 Level 3 Total 2020 2019 2020 2019 2020 2019 2020 2019 (in millions) Cash equivalents $ 17 $ 18 $ — $ — $ — $ — $ 17 $ 18 Collective investment funds — — 509 580 — — 509 580 Corporate debt securities — — 373 188 — — 373 188 U.S. government-sponsored debt securities — — 30 35 — — 30 35 U.S. Treasury securities 84 99 — — — — 84 99 Asset-backed securities — — — — 37 37 37 37 Equity securities 92 133 — — — — 92 133 Total $ 193 $ 250 $ 912 $ 803 $ 37 $ 37 $ 1,142 $ 1,090 Non-U.S. Plans Fair Value Measurements at September 30 Using Inputs Considered as Level 1 Level 2 Level 3 Total 2020 2019 2020 2019 2020 2019 2020 2019 (in millions) Cash and cash equivalents $ 6 $ 16 $ — $ — $ — $ — $ 6 $ 16 Equity securities — 66 — — — — — 66 Corporate debt securities — — 48 44 — — 48 44 Asset-backed securities — — — — 67 51 67 51 Equity funds — — 65 — — — 65 — Multi-asset securities (1) — — 339 313 — — 339 313 Total $ 6 $ 82 $ 452 $ 357 $ 67 $ 51 $ 525 $ 490 (1) Multi-asset securities represent pension plan assets that are invested in funds comprised of broad ranges of assets. |
Expected future employer contributions and benefit payments | Cash Flows Expected future employer contributions and benefit payments are as follows: U.S. Plans Non-U.S. Plans (in millions) Expected employer contributions 2021 $ 1 $ 10 Expected benefit payments 2021 130 7 2022 93 7 2023 89 8 2024 80 8 2025 74 8 2026-2030 289 43 |
Settlement Guarantee Manageme_2
Settlement Guarantee Management (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Settlement Guarantee Management [Abstract] | |
Schedule of Customer Collateral | At September 30, 2020 and 2019, the Company held the following collateral to manage settlement exposure: September 30, 2020 2019 (in millions) Restricted cash and restricted cash equivalents $ 1,850 $ 1,648 Pledged securities at market value 228 259 Letters of credit 1,306 1,293 Guarantees 717 477 Total $ 4,101 $ 3,677 |
Enterprise-wide Disclosures a_2
Enterprise-wide Disclosures and Concentration of Business (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Enterprise-wide Disclosures and Concentration of Business [Abstract] | |
Schedule of long-lived net property, equipment and technology assets by major geographic area | The Company’s long-lived net property and equipment and ROU assets are classified by major geographic areas as follows: September 30, 2020 2019 (1) (in millions) U.S. $ 1,350 $ 1,186 International 558 263 Total $ 1,908 $ 1,449 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Common Stock as Converted | The number of shares of each series and class, and the number of shares of class A common stock on an as-converted basis at September 30, 2020 and 2019, were as follows: September 30, 2020 2019 Shares Conversion Rate Into Class A Common Stock As-converted Class A Common Stock (1) Shares Conversion Rate Into Class A Common Stock As-converted Class A Common Stock (1) (in millions, except conversion rate) Series A preferred stock — (2) 100.0000 35 — — — UK&I preferred stock 2 6.3870 16 2 12.9360 32 Europe preferred stock 3 6.8610 22 3 13.8840 44 Class A common stock (3) 1,683 — 1,683 1,718 — 1,718 Class B common stock 245 1.6228 (4) 398 245 1.6228 (4) 398 Class C common stock 11 4.0000 43 11 4.0000 45 Total 2,197 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) The number of shares outstanding was less than one million. (3) Class A common stock shares outstanding reflect repurchases settled on or before September 30, 2020 and 2019. (4) 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. |
Effect of VE Territory Covered Losses Recovery on the Company Repurchasing its Common Stock | The following table present s the reduction in as-converted UK&I and Europe preferred stock after the Company recovered V E territory covered losses recovered through conversion rate adjustments and the Fourth anniversary release: For the Years Ended September 30, 2020 2019 2018 UK&I Europe UK&I Europe UK&I Europe (in millions, except per share data) Reduction in equivalent number of as-converted shares of class A common stock 16 22 — (1) — (1) — (1) — (1) Effective price per share (2) $ 194.31 $ 194.33 $ 141.32 $ 150.26 $ 113.05 $ 112.92 Recovery through conversion rate adjustment $ 72 $ 92 $ 6 $ 2 $ 35 $ 21 Fourth anniversary release $ 3,084 $ 4,216 $ — $ — $ — $ — (1) The reduction in equivalent number of shares of class A common stock was less than one million shares. |
Effect of U.S. Retrospective Responsibility Plan on the Company Class Common B As-Converted Shares | The following table presents the reduction in as-converted class B common stock after deposits into the litigation escrow account for the following fiscal years: For the Years Ended September 30, 2020 2019 2018 (in millions, except per share data) Reduction in equivalent number of as-converted shares of class A common stock — 2 5 Effective price per share (1) $ — $ 174.73 $ 132.32 Deposits under the U.S. retrospective responsibility plan $ — $ 300 $ 600 |
Schedule of Share Repurchases in the Open Market | The following table presents share repurchases in the open market for the following fiscal years: For the Years Ended September 30, 2020 2019 2018 (in millions, except per share data) Shares repurchased in the open market (1) 44 56 58 Average repurchase price per share (2) $ 183.00 $ 154.01 $ 123.76 Total cost $ 8,114 $ 8,607 $ 7,192 (1) Shares repurchased in the open market reflect repurchases that settled during fiscal 2020, 2019 and 2018. All sh ares repurchased in the open market have been retired and constitute authorized but unissued shares. (2) Average repurchase price per share is calculated based on unrounded numbers. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table presents earnings per share for fiscal 2020: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 8,310 1,697 $ 4.90 $ 10,866 2,223 (3) $ 4.89 Class B common stock 1,951 245 $ 7.94 1,948 245 $ 7.93 Class C common stock 214 11 $ 19.58 214 11 $ 19.56 Participating securities (4) 391 Not presented Not presented 391 Not presented Not presented Net income $ 10,866 The following table presents earnings per share for fiscal 2019: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 9,273 1,742 $ 5.32 $ 12,080 2,272 (3) $ 5.32 Class B common stock 2,130 245 $ 8.68 2,127 245 $ 8.66 Class C common stock 247 12 $ 21.30 246 12 $ 21.26 Participating securities (4) 430 Not presented Not presented 429 Not presented Not presented Net income $ 12,080 The following table presents earnings per share for fiscal 2018: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 7,937 1,792 $ 4.43 $ 10,301 2,329 (3) $ 4.42 Class B common stock 1,787 245 $ 7.28 1,785 245 $ 7.27 Class C common stock 218 12 $ 17.72 217 12 $ 17.69 Participating securities (4) 359 Not presented Not presented 358 Not presented Not presented Net income $ 10,301 (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, 400 million and 403 million for fiscal 2020, 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, 46 million and 49 million for fiscal 2020, 2019 and 2018, respectively. The weighted-average number of shares of preferred stock included within participating securities was 1 million of as-converted series A preferred stock for fiscal 2020, 32 million of as-converted UK&I preferred stock for each of fiscal 2020, 2019 and 2018, and 43 million of as-converted Europe preferred stock for fiscal 2020 and 44 million of as-converted Europe preferred stock for each of fiscal 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 3 million common stock equivalents for each of fiscal 2020, 2019 and 2018 because their effect would have been dilutive. The computation excludes 1 million of common stock equivalents for each of fiscal 2020, 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 series A preferred stock, UK&I and Europe preferred stock, restricted stock awards, 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. See Note 15—Stockholders’ Equity. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used | During fiscal 2020, 2019 and 2018, the fair value of each stock option was estimated on the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: For the Years Ended September 30, 2020 2019 2018 Expected term (in years) (1) 4.03 3.98 4.00 Risk-free rate of return (2) 1.6 % 2.9 % 2.0 % Expected volatility (3) 18.7 % 20.2 % 18.3 % Expected dividend yield (4) 0.7 % 0.7 % 0.7 % Fair value per option granted $ 29.37 $ 25.89 $ 18.24 (1) Until March 2018, this assumption was based on the Company’s historical option exercises and those of a set of peer companies that management believed to be generally comparable to Visa. The Company’s data was weighted based on the number of years between the measurement date and Visa’s IPO date as a percentage of the options’ contractual term. The relative weighting placed on Visa’s data and peer data for stock options granted until March 2018 was approximately 97% and 3% in fiscal 2018, respectively. The assumptions for stock options granted after March 2018 was based on Visa’s historical exercise experience as the passage of time since the Company’s IPO has exceeded 10 years. (2) Based upon the zero coupon U.S. treasury bond rate over the expected term of the awards. (3) Based on the Company’s implied and historical volatility. (4) Based on the Company’s annual dividend rate on the date of grant. |
Schedule of Share-based Compensation, Options Activity | The following table summarizes the Company’s option activity for fiscal 2020: Options Weighted- Weighted- Aggregate Intrinsic Value (1) (in millions) Outstanding at September 30, 2019 5,714,658 $ 90.18 Granted 1,247,982 $ 182.50 Forfeited (67,193) $ 140.17 Expired — $ — Exercised (1,108,898) $ 63.53 Outstanding at September 30, 2020 5,786,549 $ 114.61 6.87 $ 494 Options exercisable at September 30, 2020 3,425,611 $ 87.28 5.79 $ 386 Options exercisable and expected to vest at September 30, 2020 (2) 5,718,325 $ 113.96 6.84 $ 492 (1) Calculated using the closing stock price on the last trading day of fiscal 2020 of $199.97, less the option exercise price, multiplied by the number of instruments. (2) Applied a forfeiture rate to unvested options outstanding at September 30, 2020 to estimate the options expected to vest in the future. |
Restricted Share Activity Disclosure | The following table summarizes the Company’s RSU activity for fiscal 2020: Restricted Stock Units Weighted- Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in millions) Outstanding at September 30, 2019 5,166,759 $ 118.79 Granted 2,352,714 $ 183.61 Vested (2,561,379) $ 110.73 Forfeited (267,594) $ 147.70 Outstanding at September 30, 2020 4,690,500 $ 154.06 0.83 $ 938 (1) Calculated by multiplying the closing stock price on the last trading day of fiscal 2020 of $199.97 by the number of instruments. |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarizes the maximum number of performance-based shares which could be earned and related activity for fiscal 2020: Shares Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in millions) Outstanding at September 30, 2019 1,070,690 $ 129.08 Granted (2) 470,128 $ 211.08 Vested and earned (546,018) $ 118.18 Unearned — $ — Forfeited — $ — Outstanding at September 30, 2020 994,800 $ 171.33 0.73 $ 199 (1) Calculated by multiplying the closing stock price on the last trading day of fiscal 2020 of $199.97 by the number of instruments. (2) Represents the maximum number of performance-based shares which could be earned. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Present Value of Future Minimum Lease Payments | At September 30, 2020, future minimum payments on software licenses are as follows: For the Years Ending September 30, 2021 2022 2023 2024 2025 Thereafter Total (in millions) Software licenses $ 61 $ 26 $ 5 $ 5 $ 5 $ — $ 102 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
U.S. and Non-U.S. Income Before Income Tax | The Company’s income before taxes by fiscal year consisted of the following: For the Years Ended September 30, 2020 2019 2018 (in millions) U.S. $ 9,178 $ 9,536 $ 8,088 Non-U.S. 4,612 5,348 4,718 Total income before taxes $ 13,790 $ 14,884 $ 12,806 |
Comprehensive Income Tax (Expense) Benefit Components Table | Income tax provision by fiscal year consisted of the following: For the Years Ended September 30, 2020 2019 2018 (in millions) Current: U.S. federal $ 1,662 $ 1,504 $ 2,819 State and local 212 243 219 Non-U.S. 743 843 754 Total current taxes 2,617 2,590 3,792 Deferred: U.S. federal 42 184 (1,214) State and local 9 28 (96) Non-U.S. 256 2 23 Total deferred taxes 307 214 (1,287) Total income tax provision $ 2,924 $ 2,804 $ 2,505 |
Components of Deferred Tax Assets and Liabilities | The tax effect of temporary differences that give rise to significant portions of deferred tax assets and liabilities at September 30, 2020 and 2019, are presented below: September 30, 2020 2019 (in millions) Deferred Tax Assets: Accrued compensation and benefits $ 114 $ 117 Accrued litigation obligation 204 273 Client incentives 121 125 Net operating loss carryforwards 80 65 Comprehensive loss 148 33 Federal benefit of state taxes 203 148 Other 12 6 Valuation allowance (84) (69) Deferred tax assets 798 698 Deferred Tax Liabilities: Property, equipment and technology, net (343) (314) Intangible assets (5,492) (4,983) Foreign taxes (137) (184) Deferred tax liabilities (5,972) (5,481) Net deferred tax liabilities $ (5,174) $ (4,783) |
Reconciliation of the US Statutory Federal Tax Rate | The income tax provision differs from the amount of income tax determined by applying the applicable U.S. federal statutory rate to pretax income, as a result of the following: For the Years Ended September 30, 2020 2019 2018 (in millions, except percentages) U.S. federal income tax at statutory rate $ 2,896 21 % $ 3,126 21 % $ 3,141 25 % State income taxes, net of federal benefit 199 2 % 223 2 % 201 2 % Non-U.S. tax effect, net of federal benefit (483) (4) % (527) (4) % (465) (4) % Transition tax on foreign earnings — — % — — % 1,147 9 % Remeasurement of deferred tax balances 329 2 % — — % (1,133) (9) % Other, net (17) — % (18) — % (386) (3) % Income tax provision $ 2,924 21 % $ 2,804 19 % $ 2,505 20 % |
Unrecognized Tax Benefits Reconciliation, Table | A reconciliation of beginning and ending unrecognized tax benefits by fiscal year is as follows: 2020 2019 2018 (in millions) Balance at beginning of period $ 2,234 $ 1,658 $ 1,353 Increases of unrecognized tax benefits related to prior years 66 216 367 Decreases of unrecognized tax benefits related to prior years (83) (13) (233) Increases of unrecognized tax benefits related to current year 376 384 172 Decreases related to settlements with taxing authorities (12) (9) — Reductions related to lapsing statute of limitations (2) (2) (1) Balance at end of period $ 2,579 $ 2,234 $ 1,658 |
Legal Matters (Tables)
Legal Matters (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Legal Matters [Abstract] | |
Schedule of Loss Contingencies by Contingency | The following table summarizes the activity related to accrued litigation by fiscal year: 2020 2019 (in millions) Balance at beginning of period $ 1,203 $ 1,434 Provision for uncovered legal matters 10 37 Provision for covered legal matters 26 535 Reestablishment of prior accrual related to interchange multidistrict litigation 467 — Payments for legal matters (792) (803) Balance at end of period $ 914 $ 1,203 The following table summarizes the accrual activity related to U.S. covered litigation by fiscal year: 2020 2019 (in millions) Balance at beginning of period $ 1,198 $ 1,428 Provision for interchange multidistrict litigation — 370 Reestablishment of prior accrual related to interchange multidistrict litigation 467 — Payments for U.S. covered litigation (777) (600) Balance at end of period $ 888 $ 1,198 The following table summarizes the accrual activity related to VE territory covered litigation by fiscal year: 2020 2019 (in millions) Balance at beginning of period $ 5 $ — Accrual for VE territory covered litigation 26 165 Payments for VE territory covered litigation (10) (160) Balance at end of period $ 21 $ 5 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Detail) | Feb. 01, 2020USD ($) | Sep. 30, 2020 |
Significant Accounting Policies [Line Items] | ||
Number of countries in which entity operates (more than) | 200 | |
Number of reportable segments | 1 | |
Indefinite-lived intangible impairment | $ 0 | |
Goodwill, impairment loss | $ 0 | |
Term of derivative contracts designated as cash flow hedges | 12 months | |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Acquired long-lived intangible assets useful life | 3 years | |
Minimum | U.S. | ||
Significant Accounting Policies [Line Items] | ||
Expected average employee future service period (in years) | 6 years | |
Minimum | Non-U.S. Plans | ||
Significant Accounting Policies [Line Items] | ||
Expected average employee future service period (in years) | 6 years | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Acquired long-lived intangible assets useful life | 15 years | |
Maximum | U.S. | ||
Significant Accounting Policies [Line Items] | ||
Expected average employee future service period (in years) | 10 years | |
Maximum | Non-U.S. Plans | ||
Significant Accounting Policies [Line Items] | ||
Expected average employee future service period (in years) | 10 years | |
Technology Equipment | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 2 years | |
Technology Equipment | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 10 years | |
Furniture and Fixtures | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 2 years | |
Furniture and Fixtures | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 10 years | |
Equipment | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 2 years | |
Equipment | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 10 years | |
Building Improvements | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 3 years | |
Building Improvements | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 40 years | |
Building | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 40 years |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | Jan. 13, 2020 | Sep. 30, 2019 |
Plaid, Inc. | ||
Business Acquisition [Line Items] | ||
Total purchase consideration | $ 5,300 | |
Cash portion of purchase consideration | 4,900 | |
Retention equity and deferred equity consideration | $ 400 | |
2019 Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Total purchase consideration | $ 942 | |
Cash portion of purchase consideration | 888 | |
Deferred cash portion of purchase consideration | 54 | |
Expected deductible portion of goodwill | $ 360 |
Acquisitions - Schedule of Prel
Acquisitions - Schedule of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 15,910 | $ 15,656 | $ 15,194 |
2019 Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Net tangible assets acquired (liabilities assumed) | 23 | ||
Intangible assets | 319 | ||
Goodwill | 647 | ||
Fair value of net assets acquired | 989 | ||
Fair value of previously-held interest in the acquired entities | $ 47 |
Acquisitions - Schedule of Iden
Acquisitions - Schedule of Identified Intangible Assets Acquired (Details) - 2019 Business Acquisitions $ in Millions | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Date Fair Value | $ 319 |
Weighted-Average Useful Life | 10 years |
Developed technologies | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Date Fair Value | $ 70 |
Weighted-Average Useful Life | 4 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Date Fair Value | $ 249 |
Weighted-Average Useful Life | 12 years |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 21,846 | $ 22,977 | $ 20,609 |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 10,125 | 10,279 | 9,332 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 11,721 | 12,698 | 11,277 |
Service revenues | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 9,804 | 9,700 | 8,918 |
Data processing revenues | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 10,975 | 10,333 | 9,027 |
International transaction revenues | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 6,299 | 7,804 | 7,211 |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 1,432 | 1,313 | 944 |
Client incentives | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ (6,664) | $ (6,173) | $ (5,491) |
Revenues - Additional Informati
Revenues - Additional Information (Details) $ in Billions | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 50.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 50.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 16,289 | $ 7,838 | $ 8,162 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents | 19,171 | 10,832 | 10,977 | $ 12,011 |
U.S. litigation escrow | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | 901 | 1,205 | 1,491 | |
Customer collateral | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | 1,850 | 1,648 | 1,324 | |
Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | $ 131 | $ 141 | $ 0 |
U.S. and Europe Retrospective_3
U.S. and Europe Retrospective Responsibility Plans - Changes in the U.S. Litigation Escrow Account (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Escrow Account [Roll Forward] | |||
Beginning balance | $ 1,205 | $ 1,491 | |
Return of takedown payment to the litigation escrow account | 467 | 0 | |
Deposits into the litigation escrow account | 0 | 300 | $ 600 |
Payments to class plaintiffs settlement funds | 0 | (600) | |
Ending balance | 901 | 1,205 | $ 1,491 |
Interest Income | Opt-out Merchants | |||
Escrow Account [Roll Forward] | |||
Payments to opt-out merchants and interest earned on escrow funds | $ (771) | $ 14 |
U.S. and Europe Retrospective_4
U.S. and Europe Retrospective Responsibility Plans - Additional Information (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020USD ($)shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2020EUR (€)shares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 21, 2016EUR (€) | ||
Class of Stock [Line Items] | |||||||
Return of takedown payment to the litigation escrow account | $ 467 | $ 0 | |||||
Omnibus loss sharing agreement percentage | 66.6667% | 66.6667% | 66.6667% | ||||
Litigation loss sharing agreement, obligation threshold | € | € 1,000 | ||||||
Limit of protection from VE territory covered losses | 70.00% | ||||||
Conversion adjustment denominator (in shares) | shares | 100 | ||||||
VE covered loss, maximum amount of loss to allow adjustment of conversion rate during six-month period | € | € 20 | ||||||
Recovery through conversion rate adjustment | $ 5 | ||||||
Series A convertible participating preferred stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock issued | $ 7,300 | ||||||
Preferred stock, shares issued (in shares) | shares | 374,819 | ||||||
Cash paid for fractional shares of series A preferred stock | $ 5 | ||||||
Right to Recover for Covered Losses | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock issued | 0 | ||||||
Recovery through conversion rate adjustment | 169 | 8 | $ 56 | ||||
Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Recovery through conversion rate adjustment | $ (164) | (8) | $ (56) | ||||
Preferred Stock | Series A convertible participating preferred stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares issued (in shares) | shares | [1] | 0 | 0 | ||||
MasterCard | |||||||
Class of Stock [Line Items] | |||||||
Omnibus loss sharing agreement percentage | 33.3333% | 33.3333% | 33.3333% | ||||
Interchange Multidistrict Litigation | |||||||
Class of Stock [Line Items] | |||||||
Return of takedown payment to the litigation escrow account | $ 467 | 0 | |||||
U.S. Covered Litigation | Interchange Multidistrict Litigation | |||||||
Class of Stock [Line Items] | |||||||
Provision for unsettled legal matters | $ 0 | $ 370 | |||||
[1] | Increase, decrease or balance is less than one million shares. |
U.S. and Europe Retrospective_5
U.S. and Europe Retrospective Responsibility Plans - Changes in Preferred Stock and Right to Recover Covered Losses (Details) $ / shares in Units, shares in Millions, $ in Millions | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | $ 34,684 | $ 34,006 | $ 32,760 | ||
VE territory covered losses incurred | (37) | (172) | (11) | ||
Recovery through conversion rate adjustment | (5) | ||||
Ending Balance | $ 36,210 | $ 34,684 | 36,210 | 34,684 | 34,006 |
Preferred Stock Available to Recover Covered Losses, Value, As-converted | 7,499 | 13,058 | 7,499 | 13,058 | |
Preferred Stock Available to Recover Covered Losses, Value | 2,649 | 5,462 | 2,649 | 5,462 | |
Right to recover for covered losses | (39) | (171) | (39) | (171) | |
Preferred Stock Available to Recover Covered Losses, Value, As-converted, Net | 7,460 | 12,887 | 7,460 | 12,887 | |
Preferred Stock Available to Recover Covered Losses, Value, Net | $ 2,610 | $ 5,291 | $ 2,610 | $ 5,291 | |
Share price (in dollars per share) | $ / shares | $ 199.97 | $ 199.97 | |||
Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Preferred stock, shares outstanding (in shares) | shares | 5 | 5 | 5 | 5 | |
Series B Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Recovery through conversion rate adjustment | $ (72) | $ (6) | (35) | ||
Preferred Stock Available to Recover Covered Losses, Value, As-converted | $ 3,168 | $ 5,519 | 3,168 | 5,519 | |
Preferred stock | $ 1,106 | $ 2,285 | $ 1,106 | $ 2,285 | |
Preferred stock, shares outstanding (in shares) | shares | 2 | 2 | 2 | 2 | |
Preferred stock, conversion rate | 6.3870 | 12.9360 | |||
Series C Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Recovery through conversion rate adjustment | $ (92) | $ (2) | (21) | ||
Preferred Stock Available to Recover Covered Losses, Value, As-converted | $ 4,331 | $ 7,539 | 4,331 | 7,539 | |
Preferred stock | $ 1,543 | $ 3,177 | $ 1,543 | $ 3,177 | |
Preferred stock, shares outstanding (in shares) | shares | 3 | 3 | 3 | 3 | |
Preferred stock, conversion rate | 6.861 | 13.8840 | |||
Class A common stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share price (in dollars per share) | $ / shares | $ 199.97 | $ 172.01 | $ 199.97 | $ 172.01 | |
Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | $ 5,462 | $ 5,470 | 5,526 | ||
Recovery through conversion rate adjustment | 164 | 8 | 56 | ||
Ending Balance | $ 5,086 | $ 5,462 | 5,086 | 5,462 | 5,470 |
Preferred Stock | Series B Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 2,285 | ||||
VE territory covered losses incurred | 0 | ||||
Recovery through conversion rate adjustment | (72) | ||||
Fourth anniversary release | (1,107) | ||||
Ending Balance | 1,106 | 2,285 | 1,106 | 2,285 | |
Preferred Stock | Series C Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 3,177 | ||||
VE territory covered losses incurred | 0 | ||||
Recovery through conversion rate adjustment | (92) | ||||
Fourth anniversary release | (1,542) | ||||
Ending Balance | 1,543 | 3,177 | 1,543 | 3,177 | |
Right to Recover for Covered Losses | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | (171) | (7) | (52) | ||
VE territory covered losses incurred | (37) | (172) | (11) | ||
Recovery through conversion rate adjustment | (169) | (8) | (56) | ||
Fourth anniversary release | 0 | ||||
Ending Balance | $ (39) | $ (171) | $ (39) | $ (171) | $ (7) |
Fair Value Measurements and I_3
Fair Value Measurements and Investments - Assets and Liabilities Measured (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Assets | ||
U.S. securities | $ 3,835 | $ 6,267 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Total | 14,573 | 7,295 |
Liabilities | ||
Deferred compensation liability | 135 | 113 |
Total | 135 | 113 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total | 4,563 | 6,179 |
Liabilities | ||
Deferred compensation liability | 0 | 0 |
Total | 181 | 52 |
Money market funds | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Cash equivalents and restricted cash equivalents | 12,522 | 6,494 |
Money market funds | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Cash equivalents and restricted cash equivalents | 0 | 0 |
U.S. government-sponsored debt securities | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Cash equivalents and restricted cash equivalents | 650 | 0 |
U.S. government-sponsored debt securities | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Cash equivalents and restricted cash equivalents | 1,469 | 150 |
Equity securities | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Marketable equity securities | 148 | 126 |
Equity securities | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Marketable equity securities | 0 | 0 |
U.S. government-sponsored debt securities | ||
Assets | ||
U.S. securities | 2,582 | 5,592 |
U.S. government-sponsored debt securities | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
U.S. securities | 0 | 0 |
U.S. government-sponsored debt securities | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
U.S. securities | 2,582 | 5,592 |
U.S. Treasury securities | ||
Assets | ||
U.S. securities | 1,253 | 675 |
U.S. Treasury securities | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
U.S. securities | 1,253 | 675 |
U.S. Treasury securities | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
U.S. securities | 0 | 0 |
Derivative instruments | Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Derivative instruments | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Derivative instruments | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Derivative instruments | 512 | 437 |
Liabilities | ||
Derivative instruments | $ 181 | $ 52 |
Fair Value Measurements and I_4
Fair Value Measurements and Investments - Additional Information (Detail) - USD ($) | Feb. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Upward adjustments | $ 102,000,000 | $ 110,000,000 | ||
Downward adjustments | 6,000,000 | 4,000,000 | ||
Goodwill and intangible asset impairment | $ 0 | 0 | 0 | $ 0 |
Carrying value of long-term debt | 24,070,000,000 | 16,729,000,000 | ||
Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying value of long-term debt | 24,100,000,000 | 16,700,000,000 | ||
Senior Notes | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Estimated fair value | $ 26,600,000,000 | $ 18,400,000,000 |
Fair Value Measurements and I_5
Fair Value Measurements and Investments - Amortized Cost, Unrealized Gains and Losses, and Fair Value of Available-for-sale Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 3,832 | $ 6,262 |
Gross Unrealized Gains | 3 | 7 |
Gross Unrealized Losses | (2) | |
Fair Value | 3,835 | 6,267 |
Less: current portion | (3,604) | (4,110) |
Long-term debt securities | 231 | 2,157 |
U.S. government-sponsored debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,581 | 5,590 |
Gross Unrealized Gains | 1 | 4 |
Gross Unrealized Losses | (2) | |
Fair Value | 2,582 | 5,592 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,251 | 672 |
Gross Unrealized Gains | 2 | 3 |
Fair Value | $ 1,253 | $ 675 |
Fair Value Measurements and I_6
Fair Value Measurements and Investments - Contractual Maturity of Debt Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Fair Value | ||
Due within one year | $ 3,604 | |
Due after 1 year through 5 years | 231 | |
Fair Value | $ 3,835 | $ 6,267 |
Fair Value Measurements and I_7
Fair Value Measurements and Investments - Schedule of Non-Marketable Equity Securities (Details) $ in Millions | Sep. 30, 2020USD ($) |
Fair Value Disclosures [Abstract] | |
Initial cost basis | $ 841 |
Upward adjustments | 212 |
Downward adjustments (including impairment) | (11) |
Carrying amount, end of period | $ 1,042 |
Fair Value Measurements and I_8
Fair Value Measurements and Investments - Investment Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Investment Income [Line Items] | |||
Interest and dividend income on cash and investments | $ 80 | $ 247 | $ 173 |
Realized gains (losses), net on debt securities | |||
Realized gains (losses), net | 4 | 1 | 0 |
Equity securities: | |||
Unrealized gains (losses), net | 115 | 117 | 2 |
Investment income | 200 | 383 | 470 |
Donation | |||
Equity securities: | |||
Realized gains (losses), net | 0 | 0 | 193 |
Excluding Donation | |||
Equity securities: | |||
Realized gains (losses), net | $ 1 | $ 18 | $ 102 |
Property, Equipment and Techn_3
Property, Equipment and Technology, Net - Summary of Property, Equipment and Technology, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and technology | $ 7,161 | $ 6,570 |
Accumulated depreciation and amortization | (4,424) | (3,875) |
Property, equipment and technology, net | 2,737 | 2,695 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and technology | 71 | 71 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and technology | 1,007 | 965 |
Furniture, equipment and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and technology | 1,997 | 1,913 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and technology | 163 | 180 |
Technology | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and technology | $ 3,923 | $ 3,441 |
Property, Equipment and Techn_4
Property, Equipment and Technology, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Technology, accumulated amortization | $ 2,700 | $ 2,300 | |
Depreciation and amortization | 767 | 656 | $ 613 |
Property, Equipment and Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Depreciation and amortization | $ 687 | $ 596 | $ 558 |
Property, Equipment and Techn_5
Property, Equipment and Technology, Net - Estimated Future Amortization Expense on Technology Placed in Service (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2021 | $ 81 |
2022 | 76 |
2023 | 52 |
2024 | 50 |
2025 | 40 |
Thereafter | 108 |
Total | 407 |
Technology and Software | |
Finite-Lived Intangible Assets [Line Items] | |
2021 | 419 |
2022 | 313 |
2023 | 225 |
2024 | 142 |
2025 | 62 |
Thereafter | 24 |
Total | $ 1,185 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill - Fair Value of Intangible Assets and Related Accumulated Amortization Expense (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,020 | $ 1,012 |
Accumulated Amortization | (613) | (533) |
Finite-Lived Intangible Assets, Net | 407 | 479 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets | 27,401 | 26,301 |
Gross | 28,421 | 27,313 |
Net | 27,808 | 26,780 |
Customer relationships and reacquired rights | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets | 23,317 | 22,217 |
Visa trade name | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets | 4,084 | 4,084 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 709 | 701 |
Accumulated Amortization | (376) | (314) |
Finite-Lived Intangible Assets, Net | 333 | 387 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 199 | 199 |
Accumulated Amortization | (134) | (120) |
Finite-Lived Intangible Assets, Net | 65 | 79 |
Reseller relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 95 | 95 |
Accumulated Amortization | (89) | (86) |
Finite-Lived Intangible Assets, Net | 6 | 9 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 17 | 17 |
Accumulated Amortization | (14) | (13) |
Finite-Lived Intangible Assets, Net | $ 3 | $ 4 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) | Feb. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to finite-lived intangible assets | $ 80,000,000 | $ 60,000,000 | $ 55,000,000 | |
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Estimated Future Amortization Expense on Finite-Lived Intangible Assets (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 81 |
2022 | 76 |
2023 | 52 |
2024 | 50 |
2025 | 40 |
Thereafter | 108 |
Total | $ 407 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 15,656 | $ 15,194 |
Goodwill from acquisitions, net of adjustments | 48 | 643 |
Foreign currency translation | 206 | (181) |
Goodwill, end of period | $ 15,910 | $ 15,656 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2020USD ($)option_to_renew | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 114 |
Weighted average remaining lease term (in years) | 6 years |
Weighted average discount rate | 2.29% |
Operating leases, not yet commenced, lease obligations | $ 466 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Number of renewal options | option_to_renew | 1 |
Operating leases, non-cancellable lease terms | 1 year |
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 | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 108 |
2022 | 103 |
2023 | 95 |
2024 | 82 |
2025 | 70 |
Thereafter | 163 |
Total | 621 |
Less: imputed interest | (51) |
Present value of lease liabilities | $ 570 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityNoncurrent |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Debt Instrument [Line Items] | ||
Senior notes | $ 24,000 | |
Unamortized discounts and debt issuance costs | (178) | $ (108) |
Hedge accounting fair value adjustments | 248 | 87 |
Total carrying value of debt | 24,070 | 16,729 |
Current maturities of debt | 2,999 | 0 |
Long-term debt | 21,071 | 16,729 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 24,000 | 16,750 |
Total carrying value of debt | $ 24,100 | 16,700 |
Senior Notes | 2.20% Senior Notes due December 2020 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 2.20% | |
Senior notes | $ 3,000 | 3,000 |
Effective interest rate (percent) | 2.30% | |
Senior Notes | 2.15% Senior Notes due September 2022 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 2.15% | |
Senior notes | $ 1,000 | 1,000 |
Effective interest rate (percent) | 2.30% | |
Senior Notes | 2.80% Senior Notes due December 2022 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 2.80% | |
Senior notes | $ 2,250 | $ 2,250 |
Effective interest rate (percent) | 2.89% | |
Senior Notes | 3.15% Senior Notes due December 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 3.15% | 3.15% |
Senior notes | $ 4,000 | $ 4,000 |
Effective interest rate (percent) | 3.26% | |
Senior Notes | 1.90% Senior Notes due April 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 1.90% | |
Senior notes | $ 1,500 | 0 |
Effective interest rate (percent) | 2.02% | |
Senior Notes | 0.75% Senior Notes due August 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 0.75% | |
Senior notes | $ 500 | 0 |
Effective interest rate (percent) | 0.84% | |
Senior Notes | 2.75% Senior Notes due September 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 2.75% | |
Senior notes | $ 750 | 750 |
Effective interest rate (percent) | 2.91% | |
Senior Notes | 2.05% Senior Notes due April 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 2.05% | |
Senior notes | $ 1,500 | 0 |
Effective interest rate (percent) | 2.13% | |
Senior Notes | 1.10% Senior Notes due February 2031 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 1.10% | |
Senior notes | $ 1,000 | 0 |
Effective interest rate (percent) | 1.20% | |
Senior Notes | 4.15% Senior Notes due December 2035 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 4.15% | |
Senior notes | $ 1,500 | 1,500 |
Effective interest rate (percent) | 4.23% | |
Senior Notes | 2.70% Senior Notes due April 2040 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 2.70% | |
Senior notes | $ 1,000 | 0 |
Effective interest rate (percent) | 2.80% | |
Senior Notes | 4.30% Senior Notes due December 2045 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 4.30% | |
Senior notes | $ 3,500 | 3,500 |
Effective interest rate (percent) | 4.37% | |
Senior Notes | 3.65% Senior Notes due September 2047 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 3.65% | |
Senior notes | $ 750 | 750 |
Effective interest rate (percent) | 3.73% | |
Senior Notes | 2.00% Senior Notes due August 2050 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 2.00% | |
Senior notes | $ 1,750 | $ 0 |
Effective interest rate (percent) | 2.09% |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) $ in Millions | Sep. 30, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 3,000 |
2022 | 1,000 |
2023 | 2,250 |
2024 | 0 |
2025 | 0 |
Thereafter | 17,750 |
Total | $ 24,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jul. 25, 2019 | Aug. 31, 2020 | Apr. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Commercial Paper Program | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal | $ 3,000,000,000 | ||||
Debt term | 397 days | ||||
Commercial paper program, amount outstanding | $ 0 | $ 0 | |||
Senior Notes | August 2020 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal | $ 3,300,000,000 | ||||
Net aggregate proceeds | $ 3,200,000,000 | ||||
Senior Notes | August 2027 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt term | 7 years | ||||
Stated interest rate (percent) | 0.75% | ||||
Senior Notes | August 2031 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt term | 10 years 6 months | ||||
Stated interest rate (percent) | 1.10% | ||||
Senior Notes | August 2050 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt term | 30 years | ||||
Stated interest rate (percent) | 2.00% | ||||
Senior Notes | April 2020 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal | $ 4,000,000,000 | ||||
Net aggregate proceeds | $ 4,000,000,000 | ||||
Senior Notes | April 2027 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt term | 7 years | ||||
Stated interest rate (percent) | 1.90% | ||||
Senior Notes | April 2030 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt term | 10 years | ||||
Stated interest rate (percent) | 2.05% | ||||
Senior Notes | April 2040 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt term | 20 years | ||||
Stated interest rate (percent) | 2.70% | ||||
Line of Credit | Credit Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt term | 5 years | ||||
Maximum borrowing capacity | $ 5,000,000,000 | ||||
Credit facility amount outstanding | $ 0 | $ 0 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, personnel costs | $ 140 | $ 121 | $ 93 |
Equity securities | U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations | 53.00% | ||
Equity securities | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations | 13.00% | ||
Fixed income securities | U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations | 46.00% | ||
Other security investments | U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations | 1.00% | ||
Other security investments | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, percentage | 38.00% | ||
Actual plan asset allocations | 37.00% | ||
Equity funds | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, percentage | 12.00% | ||
Interest and inflation hedging assets | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, percentage | 50.00% | ||
Actual plan asset allocations | 50.00% | ||
Minimum | Equity securities | U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, percentage | 35.00% | ||
Minimum | Fixed income securities | U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, percentage | 43.00% | ||
Maximum | Equity securities | U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, percentage | 65.00% | ||
Maximum | Fixed income securities | U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, percentage | 53.00% | ||
Maximum | Other security investments | U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, percentage | 4.00% |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Change in Pension Benefit Obligations, Plan Assets, Funded Status and Amounts Recognized in the Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
U.S. Plans | |||
Change in Benefit Obligation | |||
Benefit obligation at beginning of period | $ 919 | $ 844 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 28 | 32 | 32 |
Actuarial loss (gain) | 37 | 95 | |
Benefit payments | (64) | (52) | |
Plan amendment | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Benefit obligation at end of period | 920 | 919 | 844 |
Accumulated benefit obligation | 920 | 919 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 1,090 | 1,090 | |
Actual return on plan assets | 114 | 52 | |
Company contribution | 2 | 0 | |
Benefit payments | (64) | (52) | |
Foreign currency exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of period | 1,142 | 1,090 | 1,090 |
Funded status at end of period | 222 | 171 | |
Recognized in consolidated balance sheets: | |||
Non-current asset | 229 | 178 | |
Current liability | (1) | (1) | |
Non-current liability | (6) | (6) | |
Funded status at end of period | 222 | 171 | |
Non-U.S. Plans | |||
Change in Benefit Obligation | |||
Benefit obligation at beginning of period | 528 | 452 | |
Service cost | 4 | 4 | 4 |
Interest cost | 10 | 13 | 12 |
Actuarial loss (gain) | 11 | 109 | |
Benefit payments | (17) | (22) | |
Plan amendment | 0 | 1 | |
Foreign currency exchange rate changes | 27 | (29) | |
Benefit obligation at end of period | 563 | 528 | 452 |
Accumulated benefit obligation | 563 | 528 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 490 | 436 | |
Actual return on plan assets | 5 | 93 | |
Company contribution | 22 | 10 | |
Benefit payments | (17) | (22) | |
Foreign currency exchange rate changes | 25 | (27) | |
Fair value of plan assets at end of period | 525 | 490 | $ 436 |
Funded status at end of period | (38) | (38) | |
Recognized in consolidated balance sheets: | |||
Non-current asset | 0 | 0 | |
Current liability | 0 | 0 | |
Non-current liability | (38) | (38) | |
Funded status at end of period | $ (38) | $ (38) |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Amounts Recognized in Accumulated Comprehensive Income Before Tax (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
U.S. Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss | $ 135 | $ 154 |
Non-U.S. Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss | $ 93 | $ 70 |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
U.S. Plans | ||
Accumulated benefit obligation in excess of plan assets | ||
Accumulated benefit obligation at end of period | $ (7) | $ (7) |
Fair value of plan assets at end of period | 0 | 0 |
Projected benefit obligation in excess of plan assets | ||
Benefit obligation at end of period | (7) | (7) |
Fair value of plan assets at end of period | 0 | 0 |
Non-U.S. Plans | ||
Accumulated benefit obligation in excess of plan assets | ||
Accumulated benefit obligation at end of period | (563) | (528) |
Fair value of plan assets at end of period | 525 | 490 |
Projected benefit obligation in excess of plan assets | ||
Benefit obligation at end of period | (563) | (528) |
Fair value of plan assets at end of period | $ 525 | $ 490 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Net Periodic Pension and Other Postretirement Plan Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 28 | 32 | 32 |
Expected return on assets | (72) | (71) | (70) |
Amortization of actuarial loss | 6 | 0 | 0 |
Settlement loss | 8 | 7 | 3 |
Total net periodic benefit cost | (30) | (32) | (35) |
Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 4 | 4 | 4 |
Interest cost | 10 | 13 | 12 |
Expected return on assets | (15) | (18) | (20) |
Amortization of actuarial loss | 2 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Total net periodic benefit cost | $ 1 | $ (1) | $ (4) |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current year actuarial loss (gain) | $ (5) | $ 114 | $ (47) |
Amortization of actuarial (loss) gain | (14) | (7) | (3) |
Current year prior service cost | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | (19) | 107 | (50) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (49) | 75 | (85) |
Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current year actuarial loss (gain) | 21 | 27 | 30 |
Amortization of actuarial (loss) gain | (2) | 0 | 0 |
Current year prior service cost | 0 | 1 | 0 |
Total recognized in other comprehensive income (loss) | 19 | 28 | 30 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 20 | $ 27 | $ 26 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Weighted Average Actuarial Assumptions (Detail) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate for benefit obligation | 2.88% | 3.26% | 4.23% |
Discount rate for net periodic benefit cost | 3.27% | 4.23% | 3.84% |
Expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.00% |
Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate for benefit obligation | 1.60% | 1.80% | 2.90% |
Discount rate for net periodic benefit cost | 1.80% | 2.90% | 2.70% |
Expected long-term rate of return on plan assets | 3.00% | 3.00% | 4.25% |
Rate of increase in compensation levels for: | |||
Benefit obligation | 2.50% | 2.50% | 3.20% |
Net periodic benefit cost | 2.50% | 2.50% | 3.20% |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Pension Plan Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 1,142 | $ 1,090 | $ 1,090 |
U.S. Plans | Fair Value, Measurements, Recurring | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1,142 | 1,090 | |
U.S. Plans | Fair Value, Measurements, Recurring | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 17 | 18 | |
U.S. Plans | Fair Value, Measurements, Recurring | Collective investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 509 | 580 | |
U.S. Plans | Fair Value, Measurements, Recurring | Corporate debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 373 | 188 | |
U.S. Plans | Fair Value, Measurements, Recurring | U.S. government-sponsored debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 30 | 35 | |
U.S. Plans | Fair Value, Measurements, Recurring | U.S. Treasury securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 84 | 99 | |
U.S. Plans | Fair Value, Measurements, Recurring | Asset-backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 37 | 37 | |
U.S. Plans | Fair Value, Measurements, Recurring | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 92 | 133 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 193 | 250 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 17 | 18 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Collective investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Corporate debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | U.S. government-sponsored debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 84 | 99 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 92 | 133 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 912 | 803 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Collective investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 509 | 580 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 373 | 188 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | U.S. government-sponsored debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 30 | 35 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 37 | 37 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Collective investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Corporate debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | U.S. government-sponsored debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 37 | 37 | |
U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 525 | 490 | $ 436 |
Non-U.S. Plans | Fair Value, Measurements, Recurring | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 525 | 490 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 6 | 16 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Corporate debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 48 | 44 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Asset-backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 67 | 51 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 66 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Equity funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 65 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Multi-asset securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 339 | 313 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 6 | 82 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 6 | 16 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Corporate debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 66 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Equity funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 1 | Multi-asset securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 452 | 357 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 48 | 44 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Equity funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 65 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 2 | Multi-asset securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 339 | 313 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 67 | 51 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Corporate debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 67 | 51 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Equity funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fair Value, Measurements, Recurring | Level 3 | Multi-asset securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Employer Contributions (Detail) $ in Millions | Sep. 30, 2020USD ($) |
U.S. Plans | |
Expected employer contributions | |
2021 | $ 1 |
Expected benefit payments | |
2021 | 130 |
2022 | 93 |
2023 | 89 |
2024 | 80 |
2025 | 74 |
2026-2030 | 289 |
Non-U.S. Plans | |
Expected employer contributions | |
2021 | 10 |
Expected benefit payments | |
2021 | 7 |
2022 | 7 |
2023 | 8 |
2024 | 8 |
2025 | 8 |
2026-2030 | $ 43 |
Settlement Guarantee Manageme_3
Settlement Guarantee Management - Additional Information (Detail) $ in Billions | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Settlement Guarantee Management [Abstract] | |
Maximum settlement exposure | $ 97.3 |
Average daily settlement exposure | $ 55.6 |
Settlement Guarantee Manageme_4
Settlement Guarantee Management - Collateral (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Settlement Guarantee Management [Abstract] | ||
Restricted cash and restricted cash equivalents | $ 1,850 | $ 1,648 |
Pledged securities at market value | 228 | 259 |
Letters of credit | 1,306 | 1,293 |
Guarantees | 717 | 477 |
Total | $ 4,101 | $ 3,677 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | |||
Reduction in earnings from excluded forward points and ineffectiveness | $ 9 | $ 12 | $ 9 |
Expected amount of accumulated other comprehensive income (loss) expected to be reclassified | 40 | ||
Fair value hedge assets | 248 | 89 | |
Fair value hedge liabilities | 2 | ||
Earnings related to forward points and interest differentials from forward contracts and swap agreements | 150 | 95 | |
Other Assets | |||
Derivative [Line Items] | |||
Posted collateral | 26 | ||
Accrued Liabilities | |||
Derivative [Line Items] | |||
Collateral received with counterparties | 64 | ||
Foreign Exchange Contract | Accrued Liabilities | |||
Derivative [Line Items] | |||
Derivative liability | $ 5 | $ 19 | |
3.15% Senior Notes due December 2025 | Senior Notes | |||
Derivative [Line Items] | |||
Stated interest rate (percent) | 3.15% | 3.15% | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | $ 10,700 | $ 10,900 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Notional amount | 1,600 | 800 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other Assets | |||
Derivative [Line Items] | |||
Derivative asset | 7 | 3 | |
Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative asset | 71 | 47 | |
Derivative liability | 39 | 31 | |
Net Investment Hedging | |||
Derivative [Line Items] | |||
Derivative asset | 186 | $ 298 | |
Derivative liability | $ 137 |
Enterprise-wide Disclosures a_3
Enterprise-wide Disclosures and Concentration of Business - Long-Lived Net Property, Equipment and Technology Assets Classified by Major Geographic Area (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Segment Reporting Information [Line Items] | ||
Total | $ 1,908 | $ 1,449 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Total | 1,350 | 1,186 |
International | ||
Segment Reporting Information [Line Items] | ||
Total | $ 558 | $ 263 |
Enterprise-wide Disclosures a_4
Enterprise-wide Disclosures and Concentration of Business - Additional Information (Detail) - Net Operating Revenue | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Customer Concentration Risk | Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Customer Concentration Risk | Customer Two | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
U.S. | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 46.00% | 45.00% | 45.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Billions | Sep. 30, 2020USD ($) | Sep. 30, 2019 | Sep. 30, 2020USD ($)shares | Sep. 30, 2020USD ($)$ / shares | Jun. 30, 2020$ / shares | Mar. 31, 2020$ / shares | Dec. 31, 2019$ / shares | Sep. 30, 2019$ / shares | Jun. 30, 2019$ / shares | Mar. 31, 2019$ / shares | Dec. 31, 2018$ / shares | Sep. 30, 2018$ / shares | Jun. 30, 2018$ / shares | Mar. 31, 2018$ / shares | Dec. 31, 2017$ / shares | Sep. 30, 2020USD ($)preferredStockSeries$ / sharesshares | Oct. 23, 2020$ / shares | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) |
Class of Stock [Line Items] | |||||||||||||||||||
Stock repurchase program, authorized amount | $ 9.5 | $ 8.5 | |||||||||||||||||
Stock repurchase plan, remaining authorized funds | $ 5.5 | $ 5.5 | $ 5.5 | $ 5.5 | |||||||||||||||
Dividends, paid | $ 2.7 | ||||||||||||||||||
Dividends paid, quarterly, per share (in dollars per share) | $ / shares | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.210 | $ 0.210 | $ 0.210 | $ 0.195 | $ 0.30 | ||||||
Number of series of preferred stock acquired | preferredStockSeries | 3 | ||||||||||||||||||
Subsequent Event | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Dividends declared, quarterly, per share amount (in dollars per share) | $ / shares | $ 0.32 | ||||||||||||||||||
Series A convertible participating preferred stock | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Issuance of series A preferred stock (in shares) | shares | 374,819 | ||||||||||||||||||
Preferred stock, conversion rate | 100 | 0 | |||||||||||||||||
Visa Europe | Class A equivalent preferred stock | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Preferred stock, conversion rate | 100 | ||||||||||||||||||
Share Repurchase Program Aggregate | Class C common stock | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Shares of class C common stock released from transfer restrictions, converted to class A common stock (in shares) | shares | 140,000,000 |
Stockholders' Equity - Number o
Stockholders' Equity - Number of Shares of Class A Common Shares Outstanding on an As-Converted Basis (Detail) shares in Millions | Sep. 30, 2020shares | Sep. 30, 2019shares |
Class of Stock [Line Items] | ||
As-converted Class A Common Stock (in shares) | 2,197 | 2,237 |
Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock conversion rate | 100 | 0 |
As-converted Class A Common Stock (in shares) | 35 | 0 |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 2 | 2 |
Preferred stock conversion rate | 6.3870 | 12.9360 |
As-converted Class A Common Stock (in shares) | 16 | 32 |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 3 | 3 |
Preferred stock conversion rate | 6.861 | 13.8840 |
As-converted Class A Common Stock (in shares) | 22 | 44 |
Class A common stock | ||
Class of Stock [Line Items] | ||
Common stock, shares, outstanding (in shares) | 1,683 | 1,718 |
As-converted Class A Common Stock (in shares) | 1,683 | 1,718 |
Class B common stock | ||
Class of Stock [Line Items] | ||
Common stock, shares, outstanding (in shares) | 245 | 245 |
Common stock, conversion rate | 1.6228 | 1.6228 |
As-converted Class A Common Stock (in shares) | 398 | 398 |
Class C common stock | ||
Class of Stock [Line Items] | ||
Common stock, shares, outstanding (in shares) | 11 | 11 |
Common stock, conversion rate | 4 | 4 |
As-converted Class A Common Stock (in shares) | 43 | 45 |
Stockholders' Equity - Effect o
Stockholders' Equity - Effect of VE Territory Covered Losses Recovery on the Company Repurchasing its Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Conversion of Stock [Line Items] | |||
Recovery through conversion rate adjustment | $ 5 | ||
Fourth anniversary release | $ (5) | ||
Series B Preferred Stock | |||
Conversion of Stock [Line Items] | |||
Reduction in equivalent number of as-converted shares of class A common stock (in shares) | 16 | 0 | 0 |
Effective price per share (in dollars per share) | $ 194.31 | $ 141.32 | $ 113.05 |
Recovery through conversion rate adjustment | $ 72 | $ 6 | $ 35 |
Fourth anniversary release | $ 3,084 | $ 0 | $ 0 |
Series C Preferred Stock | |||
Conversion of Stock [Line Items] | |||
Reduction in equivalent number of as-converted shares of class A common stock (in shares) | 22 | 0 | 0 |
Effective price per share (in dollars per share) | $ 194.33 | $ 150.26 | $ 112.92 |
Recovery through conversion rate adjustment | $ 92 | $ 2 | $ 21 |
Fourth anniversary release | $ 4,216 | $ 0 | $ 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of As-Converted Class B Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | |||
Reduction in equivalent number of as-converted shares of class A common stock (in shares) | 0 | 2 | 5 |
Effective price per share (in dollars per share) | $ 0 | $ 174.73 | $ 132.32 |
Deposits under the U.S. retrospective responsibility plan | $ 0 | $ 300 | $ 600 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases in the Open Market (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Class of Stock [Line Items] | |||
Total cost | $ 8,114 | $ 8,607 | $ 7,192 |
Class A common stock | |||
Class of Stock [Line Items] | |||
Shares repurchased in the open market (in shares) | 44 | 56 | 58 |
Average repurchase price per share (in dollars per share) | $ 183 | $ 154.01 | $ 123.76 |
Total cost | $ 8,114 | $ 8,607 | $ 7,192 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Income allocation - basic earnings per share | $ 10,866 | $ 12,080 | $ 10,301 |
Dilutive shares of outstanding stock awards included in computation of weighted-average dilutive shares outstanding (in shares) | 3,000,000 | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,000,000 | ||
Class A common stock | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Income allocation - basic earnings per share | $ 8,310 | $ 9,273 | $ 7,937 |
Weighted-average shares outstanding - basic (in shares) | 1,697,000,000 | 1,742,000,000 | 1,792,000,000 |
Earnings per share - basic (in dollars per share) | $ 4.90 | $ 5.32 | $ 4.43 |
Income allocation - diluted | $ 10,866 | $ 12,080 | $ 10,301 |
Weighted-average shares outstanding - diluted (in shares) | 2,223,000,000 | 2,272,000,000 | 2,329,000,000 |
Earnings per share - diluted (in dollars per share) | $ 4.89 | $ 5.32 | $ 4.42 |
Class B common stock | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Income allocation - basic earnings per share | $ 1,951 | $ 2,130 | $ 1,787 |
Weighted-average shares outstanding - basic (in shares) | 245,000,000 | 245,000,000 | 245,000,000 |
Earnings per share - basic (in dollars per share) | $ 7.94 | $ 8.68 | $ 7.28 |
Income allocation - diluted | $ 1,948 | $ 2,127 | $ 1,785 |
Weighted-average shares outstanding - diluted (in shares) | 245,000,000 | 245,000,000 | 245,000,000 |
Earnings per share - diluted (in dollars per share) | $ 7.93 | $ 8.66 | $ 7.27 |
Weighted average number shares as-converted basis (in shares) | 398,000,000 | 400,000,000 | 403,000,000 |
Class C common stock | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Income allocation - basic earnings per share | $ 214 | $ 247 | $ 218 |
Weighted-average shares outstanding - basic (in shares) | 11,000,000 | 12,000,000 | 12,000,000 |
Earnings per share - basic (in dollars per share) | $ 19.58 | $ 21.30 | $ 17.72 |
Income allocation - diluted | $ 214 | $ 246 | $ 217 |
Weighted-average shares outstanding - diluted (in shares) | 11,000,000 | 12,000,000 | 12,000,000 |
Earnings per share - diluted (in dollars per share) | $ 19.56 | $ 21.26 | $ 17.69 |
Weighted average number shares as-converted basis (in shares) | 44,000,000 | 46,000,000 | 49,000,000 |
Participating Securities | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Income allocation - basic earnings per share | $ 391 | $ 430 | $ 359 |
Income allocation - diluted | $ 391 | $ 429 | $ 358 |
Weighted average number shares as-converted basis (in shares) | 1,000,000 | ||
Series B Preferred Stock | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Weighted average number shares as-converted basis (in shares) | 32,000,000 | 32,000,000 | 32,000,000 |
Series C Preferred Stock | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Weighted average number shares as-converted basis (in shares) | 43,000,000 | 44,000,000 | 44,000,000 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period of options issued under EIP | 10 years | ||
Vesting period from the date of grant | 3 years | ||
Total intrinsic value from options exercised | $ 146 | $ 107 | $ 249 |
Tax benefit from exercise of stock options | 31 | $ 23 | $ 55 |
Unrecognized compensation cost | $ 22 | ||
Total unrecognized compensation cost related to non-vested options expected to be recognized over a weighted average period (in years) | 5 months 12 days | ||
Outstanding shares (in shares) | 5,786,549 | 5,714,658 | |
Weighted average remaining contractual term | 6 years 10 months 13 days | ||
Risk-free rate of return | 1.60% | 2.90% | 2.00% |
Expected term (in years) | 4 years 10 days | 3 years 11 months 23 days | 4 years |
Expected volatility | 18.70% | 20.20% | 18.30% |
Expected dividend yield | 0.70% | 0.70% | 0.70% |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period from the date of grant | 3 years | ||
Outstanding shares (in shares) | 0 | ||
Total grant date fair value of shares vested and earned | $ 284 | $ 228 | $ 183 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 381 | ||
Weighted average grant date fair value of RSUs (in dollars per share) | $ 183.61 | $ 137.38 | $ 111.11 |
Weighted average remaining contractual term | 9 months 29 days | ||
Performance-based Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period from the date of grant | 3 years | 3 years | 3 years |
Unrecognized compensation cost | $ 20 | ||
Weighted average grant date fair value of RSUs (in dollars per share) | $ 211.08 | $ 153.42 | $ 120.11 |
Total grant date fair value of shares vested and earned | $ 65 | $ 41 | $ 31 |
Weighted average remaining contractual term | 8 months 23 days | ||
Risk-free rate of return | 1.60% | ||
Expected term (in years) | 1 year 10 months 24 days | ||
Expected volatility | 20.90% | ||
Expected dividend yield | 0.70% | ||
2007 Equity Incentive Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of Class A Common Stock authorized for issuance under EIP or ESPP (in shares) | 236,000,000 | ||
Share-based compensation expense under EIP | $ 393 | 388 | 312 |
Tax benefit under EIP | $ 63 | $ 59 | $ 53 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of Class A Common Stock authorized for issuance under EIP or ESPP (in shares) | 20,000,000 | ||
ESPP discount from market price | 15.00% |
Share-based Compensation - Assu
Share-based Compensation - Assumptions Used to Estimate the Fair Value of Each Stock Option on the Date of Grant Using a Black-Scholes Option Pricing Model (Detail) - Employee Stock Option - $ / shares | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 4 years 10 days | 3 years 11 months 23 days | 4 years | |
Risk-free rate of return | 1.60% | 2.90% | 2.00% | |
Expected volatility | 18.70% | 20.20% | 18.30% | |
Expected dividend yield | 0.70% | 0.70% | 0.70% | |
Fair value per option granted (in dollars per share) | $ 29.37 | $ 25.89 | $ 18.24 | |
Expiration period of options issued under EIP | 10 years | |||
Visa | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term weighted percentage | 97.00% | |||
Peer Companies | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term weighted percentage | 3.00% |
Share-based Compensation - Summ
Share-based Compensation - Summary of Option Activity (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Aggregate Intrinsic Value | |
Stock price used to calculate aggregate intrinsic value (in dollars per share) | $ 199.97 |
Employee Stock Option | |
Options | |
Beginning balance (in shares) | shares | 5,714,658 |
Granted (in shares) | shares | 1,247,982 |
Forfeited (in shares) | shares | (67,193) |
Expired (in shares) | shares | 0 |
Exercised (in shares) | shares | (1,108,898) |
Ending balance (in shares) | shares | 5,786,549 |
Options exercisable at September 30, 2020 (in shares) | shares | 3,425,611 |
Options exercisable and expected to vest at September 30, 2020 (in shares) | shares | 5,718,325 |
Weighted- Average Exercise Price Per Share | |
Beginning balance (in dollars per share) | $ 90.18 |
Granted (in dollars per share) | 182.50 |
Forfeited (in dollars per share) | 140.17 |
Expired (in dollars per share) | 0 |
Exercised (in dollars per share) | 63.53 |
Ending balance (in dollars per share) | 114.61 |
Options exercisable at September 30, 2020 (in dollars per share) | 87.28 |
Options exercisable and expected to vest at September 30, 2020 (in dollars per share) | $ 113.96 |
Weighted- Average Remaining Contractual Term (in years) | |
Outstanding at September 30, 2020 | 6 years 10 months 13 days |
Options exercisable at September 30, 2020 | 5 years 9 months 14 days |
Options exercisable and expected to vest at September 30, 2020 | 6 years 10 months 2 days |
Aggregate Intrinsic Value | |
Outstanding at September 30, 2020 | $ | $ 494 |
Options exercisable at September 30, 2020 | $ | 386 |
Options exercisable and expected to vest at September 30, 2020 | $ | $ 492 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of RSU Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Aggregate Intrinsic Value | |||
Stock price used to calculate aggregate intrinsic value (in dollars per share) | $ 199.97 | ||
Restricted Stock Units (RSUs) | |||
Restricted stock | |||
Beginning balance (in shares) | 5,166,759 | ||
Granted (in shares) | 2,352,714 | ||
Vested (in shares) | (2,561,379) | ||
Forfeited (in shares) | (267,594) | ||
Ending balance (in shares) | 4,690,500 | 5,166,759 | |
Weighted-Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 118.79 | ||
Granted (in dollars per share) | 183.61 | $ 137.38 | $ 111.11 |
Vested (in dollars per share) | 110.73 | ||
Forfeited (in dollars per share) | 147.70 | ||
Ending balance (in dollars per share) | $ 154.06 | $ 118.79 | |
Weighted-Average Remaining Contactual Term | |||
Outstanding at September 30, 2020 | 9 months 29 days | ||
Aggregate Intrinsic Value | |||
Outstanding at September 30, 2020 | $ 938 |
Share-based Compensation - Su_3
Share-based Compensation - Summary of Performance-based Shares Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Aggregate Intrinsic Value | |||
Stock price used to calculate aggregate intrinsic value (in dollars per share) | $ 199.97 | ||
Performance-based Shares | |||
Shares | |||
Beginning balance (in shares) | 1,070,690 | ||
Granted (in shares) | 470,128 | ||
Vested (in shares) | (546,018) | ||
Unearned (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Ending balance (in shares) | 994,800 | 1,070,690 | |
Weighted- Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 129.08 | ||
Granted (in dollars per share) | 211.08 | $ 153.42 | $ 120.11 |
Vested (in dollars per share) | 118.18 | ||
Unearned (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Ending balance (in dollars per share) | $ 171.33 | $ 129.08 | |
Weighted- Average Remaining Contractual Term (in years) | |||
Outstanding at September 30, 2020 | 8 months 23 days | ||
Aggregate Intrinsic Value | |||
Outstanding at September 30, 2020 | $ 199 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Payments on Leases (Detail) - Software License $ in Millions | Sep. 30, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
2021 | $ 61 |
2022 | 26 |
2023 | 5 |
2024 | 5 |
2025 | 5 |
Thereafter | 0 |
Total | $ 102 |
Income Taxes - Income Before Ta
Income Taxes - Income Before Taxes by Fiscal Year (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 9,178 | $ 9,536 | $ 8,088 |
Non-U.S. | 4,612 | 5,348 | 4,718 |
Total income before taxes | $ 13,790 | $ 14,884 | $ 12,806 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jul. 22, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Tax Credit Carryforward [Line Items] | |||||
US income before taxes | $ 9,178,000,000 | $ 9,536,000,000 | $ 8,088,000,000 | ||
Non-recurring, non-cash tax expense related to the remeasurement of UK deferred tax liabilities | $ 329,000,000 | ||||
Deferred tax assets, net | $ 798,000,000 | $ 698,000,000 | |||
Income tax provision, percent | 21.00% | 19.00% | 20.00% | ||
U.S. federal income tax at statutory rate, percent | 21.00% | 21.00% | 24.50% | ||
Tax Cuts and Jobs Act, transition tax | $ 1,100,000,000 | ||||
Tax Cuts and Jobs Act, change in tax rate benefit | 1,100,000,000 | ||||
Tax benefits due to various non-recurring audit settlements | 161,000,000 | ||||
Income taxes receivable included in prepaid and other current assets | $ 93,000,000 | $ 130,000,000 | |||
Income taxes payable included in accrued taxes as part of accrued liabilities | 134,000,000 | 327,000,000 | |||
Accrued income taxes included in other long-term liabilities | 2,800,000,000 | 2,500,000,000 | |||
Decreased Singapore tax as a result of the tax incentive agreement | $ (280,000,000) | $ (324,000,000) | $ (295,000,000) | ||
Benefit of the tax incentive agreement on diluted net income per share (in dollars per share) | $ 0.13 | $ 0.14 | $ 0.13 | ||
Total unrecognized tax benefits exclusive of interest and penalties | $ 2,579,000,000 | $ 2,234,000,000 | $ 1,658,000,000 | $ 1,353,000,000 | |
Unrecognized tax benefits, if recognized, would reduce the effective tax rate in a future period | 1,600,000,000 | 1,400,000,000 | 1,200,000,000 | ||
Interest expense included in interest expense and administrative and other | 68,000,000 | 66,000,000 | 15,000,000 | ||
Accrued penalties related to uncertain tax positions | 4,000,000 | 5,000,000 | 0 | ||
Accrued interest related to uncertain tax positions in other long term liabilities | 233,000,000 | 165,000,000 | |||
Accrued penalties related to uncertain tax positions in other long term liabilities | 31,000,000 | 26,000,000 | |||
Domestic Tax Authority | |||||
Tax Credit Carryforward [Line Items] | |||||
Net operating loss carryforwards | 13,000,000 | ||||
State and Local Jurisdiction | |||||
Tax Credit Carryforward [Line Items] | |||||
Net operating loss carryforwards | 16,000,000 | ||||
Foreign Country | |||||
Tax Credit Carryforward [Line Items] | |||||
Net operating loss carryforwards | 367,000,000 | ||||
Other Assets | |||||
Tax Credit Carryforward [Line Items] | |||||
Deferred tax assets, net | 63,000,000 | 24,000,000 | |||
Non-current income tax receivable | 988,000,000 | 771,000,000 | |||
Non United States Customers | |||||
Tax Credit Carryforward [Line Items] | |||||
US income before taxes | $ 3,000,000,000 | $ 3,000,000,000 | $ 2,700,000,000 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense by Fiscal Year (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current: | |||
U.S. federal | $ 1,662 | $ 1,504 | $ 2,819 |
State and local | 212 | 243 | 219 |
Non-U.S. | 743 | 843 | 754 |
Total current taxes | 2,617 | 2,590 | 3,792 |
Deferred: | |||
U.S. federal | 42 | 184 | (1,214) |
State and local | 9 | 28 | (96) |
Non-U.S. | 256 | 2 | 23 |
Total deferred taxes | 307 | 214 | (1,287) |
Total income tax provision | $ 2,924 | $ 2,804 | $ 2,505 |
Income Taxes - Tax Effect of Te
Income Taxes - Tax Effect of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred Tax Assets: | ||
Accrued compensation and benefits | $ 114 | $ 117 |
Accrued litigation obligation | 204 | 273 |
Client incentives | 121 | 125 |
Net operating loss carryforwards | 80 | 65 |
Comprehensive loss | 148 | 33 |
Federal benefit of state taxes | 203 | 148 |
Other | 12 | 6 |
Valuation allowance | (84) | (69) |
Deferred tax assets | 798 | 698 |
Deferred Tax Liabilities: | ||
Property, equipment and technology, net | (343) | (314) |
Intangible assets | (5,492) | (4,983) |
Foreign taxes | (137) | (184) |
Deferred tax liabilities | (5,972) | (5,481) |
Net deferred tax liabilities | $ (5,174) | $ (4,783) |
Income Taxes - Information that
Income Taxes - Information that Causes the Income Tax Expense to Differ from the Amount of Income Tax Determined by Applying the Applicable U.S. Federal Statutory Rate of 35% to Pretax Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax at statutory rate | $ 2,896 | $ 3,126 | $ 3,141 |
State income taxes, net of federal benefit | 199 | 223 | 201 |
Non-U.S. tax effect, net of federal benefit | (483) | (527) | (465) |
Transition tax on foreign earnings | 0 | 0 | 1,147 |
Remeasurement of deferred tax balances | 329 | 0 | (1,133) |
Other, net | (17) | (18) | (386) |
Total income tax provision | $ 2,924 | $ 2,804 | $ 2,505 |
U.S. federal income tax at statutory rate, percent | 21.00% | 21.00% | 24.50% |
State income taxes, net of federal benefit, percent | 2.00% | 2.00% | 2.00% |
Non-U.S. tax effect, net of federal benefit, percent | (4.00%) | (4.00%) | (4.00%) |
Transition tax on foreign earnings, percent | 0.00% | 0.00% | 9.00% |
Remeasurement of deferred tax liability, percent | 2.00% | 0.00% | (9.00%) |
Other, net, percent | 0.00% | 0.00% | (3.00%) |
Income tax expense, percent | 21.00% | 19.00% | 20.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Unrecognized Tax Benefits by Fiscal Year (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 2,234 | $ 1,658 | $ 1,353 |
Increases of unrecognized tax benefits related to prior years | 66 | 216 | 367 |
Decreases of unrecognized tax benefits related to prior years | (83) | (13) | (233) |
Increases of unrecognized tax benefits related to current year | 376 | 384 | 172 |
Decreases related to settlements with taxing authorities | (12) | (9) | 0 |
Reductions related to lapsing statute of limitations | (2) | (2) | (1) |
Balance at end of period | $ 2,579 | $ 2,234 | $ 1,658 |
Legal Matters - Accrued Litigat
Legal Matters - Accrued Litigation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Loss Contingency Accrual [Roll Forward] | ||
Balance at beginning of period | $ 1,203 | $ 1,434 |
Balance at end of period | 914 | 1,203 |
Return of takedown payment to the litigation escrow account | 467 | 0 |
Settled Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Payments on unsettled and settled matters | (792) | (803) |
Uncovered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Provision for unsettled legal matters | 10 | 37 |
Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Provision for unsettled legal matters | 26 | 535 |
U.S. Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Balance at beginning of period | 1,198 | 1,428 |
Balance at end of period | 888 | 1,198 |
U.S. Covered Litigation | Settled Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Payments on unsettled and settled matters | (777) | (600) |
VE Territory Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Balance at beginning of period | 5 | 0 |
Provision for unsettled legal matters | 26 | 165 |
Balance at end of period | 21 | 5 |
VE Territory Covered Litigation | Settled Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Payments on unsettled and settled matters | (10) | (160) |
Interchange Multidistrict Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Return of takedown payment to the litigation escrow account | 467 | 0 |
Interchange Multidistrict Litigation | U.S. Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Provision for unsettled legal matters | $ 0 | $ 370 |
Legal Matters - Additional Info
Legal Matters - Additional Information (Detail) $ in Millions | Oct. 05, 2020financial_institution | Dec. 13, 2019USD ($) | Sep. 17, 2018USD ($) | Jun. 30, 2016litigation_case | Apr. 30, 2018case_filed | Jun. 30, 2017province | Oct. 31, 2011financial_institutionatm_operator | Dec. 31, 2010financial_institution | Mar. 31, 2017merchant | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2013 | Sep. 30, 2012USD ($) | Nov. 19, 2020merchant | Nov. 19, 2020case_filedmerchant | Sep. 30, 2018USD ($) |
Loss Contingencies [Line Items] | ||||||||||||||||
Loss contingency accrual | $ 914 | $ 1,203 | $ 1,434 | |||||||||||||
Settled Litigation | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Company's share of an additional settlement payment | 792 | 803 | ||||||||||||||
Visa, MasterCard, and Certain U.S. Financial Institutions | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Loss contingency accrual | $ 5,300 | |||||||||||||||
Possible return to defendants | $ 700 | |||||||||||||||
U.S. Covered Litigation | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Period of accrual | 5 years | |||||||||||||||
Loss contingency accrual | 888 | 1,198 | $ 1,428 | |||||||||||||
Possible return to defendants | $ 467 | |||||||||||||||
U.S. Covered Litigation | Settled Litigation | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Company's share of an additional settlement payment | 777 | 600 | ||||||||||||||
Class Plaintiffs | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Payments for legal settlements | $ 4,000 | |||||||||||||||
Settlement, further distribution of default interchange | 500 | |||||||||||||||
Loss contingency, further distributions, default period | 8 months | |||||||||||||||
Loss contingency, number of cases appointed counsel | litigation_case | 2 | |||||||||||||||
Interchange Multidistrict Litigation | Subsequent Event | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Settlement percentage | 40.00% | 40.00% | ||||||||||||||
Interchange Multidistrict Litigation | U.S. Covered Litigation | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Provision for legal matters | $ 1,100 | |||||||||||||||
Interchange Multidistrict Litigation | U.S. Covered Litigation | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Provision for legal matters | $ 0 | $ 370 | ||||||||||||||
Interchange Multidistrict Litigation | U.S. Covered Litigation | Visa, MasterCard, and Certain U.S. Financial Institutions | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Provision for legal matters | $ 900 | |||||||||||||||
Interchange Opt Out Litigation | Subsequent Event | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of opt-out cases filed | case_filed | 50 | |||||||||||||||
Europe Merchant Litigation | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of plaintiffs | merchant | 1 | |||||||||||||||
Number of separate cases | case_filed | 2 | |||||||||||||||
Europe Merchant Litigation | Subsequent Event | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of plaintiffs | merchant | 550 | |||||||||||||||
Number of claims settled | merchant | 100 | |||||||||||||||
Number of claims pending | merchant | 400 | 400 | ||||||||||||||
Europe Merchant Litigation | Threatened Litigation | Subsequent Event | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of plaintiffs | merchant | 30 | |||||||||||||||
Canadian Competition Proceedings | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of financial institutions | financial_institution | 10 | |||||||||||||||
Number of provinces with cases | province | 5 | |||||||||||||||
National ATM Council Class Action | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of non-bank ATM operators | atm_operator | 13 | |||||||||||||||
Consumer Class Actions | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of claims pending | financial_institution | 2 | |||||||||||||||
Number of financial institutions | financial_institution | 3 | |||||||||||||||
Consumer Class Actions | Subsequent Event | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of financial institutions | financial_institution | 3 |