Right to recover for covered losses (Note 4)

^[1]

5,464

5,470

^[1]

(92)

(7)

Additional paid-in capital

16,540

16,678

Accumulated income

11,908

11,318

Accumulated other comprehensive income (loss), net:

Investment securities, available-for-sale

(4)

(17)

Defined benefit pension and other postretirement plans

(67)

(61)

Derivative instruments classified as cash flow hedges

68

60

Foreign currency translation adjustments

278

565

Total accumulated other comprehensive income, net

275

547

Total equity

34,095

34,006

Total liabilities and equity

71,655

69,225

Series A Preferred Stock

Equity

0

Equity

^[1]

2,286

2,291

Equity

Preferred stock, par value

^[1]

3,178

3,179

Equity

0

Equity

0

Equity

$ 0

[1]	Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
shares in Millions

Dec. 31, 2018

Sep. 30, 2018

Preferred Stock

$ 0.0001

Preferred stock, shares authorized

25

5

5

Series A Preferred Stock

0

2

^[1]

2

3

^[1]

3

Common stock, shares authorized

Common stock, par value

$ 0.0001

2,001,622

Common stock, shares issued

1,754

1,768

^[1],[2]

1,754

1,768

Common stock, shares authorized

Common stock, par value

$ 0.0001

622

Common stock, shares issued

245

^[1]

245

Common stock, shares authorized

Common stock, par value

$ 0.0001

1,097

Common stock, shares issued

12

Depreciation and amortization

^[1]

12

[1]	Figures in the table may not recalculate exactly due to rounding.
[2]	Class A common stock shares outstanding reflect repurchases settled on or before December 31, 2018 and September 30, 2018.

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions

3 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Revenues

Net revenues

$ 5,506

$ 4,862

Operating Expenses

Personnel

807

679

Marketing

276

223

Network and processing

173

160

Professional fees

91

92

159

145

General and administrative

276

236

Litigation provision (Note 13)

7

0

Total operating expenses

1,789

1,535

Operating income

3,717

3,327

Non-operating Income (Expense)

Interest expense

(145)

(154)

Other

58

66

Total non-operating expense

(87)

(88)

Income before income taxes

3,630

3,239

Income tax provision (Note 12)

653

717

Net income

$ 2,977

$ 2,522

Basic earnings per share (in dollars per share)

Earnings Per Share

^[1]

$ 1.30

$ 1.07

Basic weighted-average shares outstanding (in shares)

1,760

1,811

Diluted earnings per share (in dollars per share)

^[1]

$ 1.30

$ 1.07

Diluted weighted-average shares outstanding (in shares)

^[2]

2,291

2,353

Basic earnings per share (in dollars per share)

Earnings Per Share

^[1]

$ 2.12

$ 1.77

Basic weighted-average shares outstanding (in shares)

245

Diluted earnings per share (in dollars per share)

^[1]

$ 2.12

$ 1.77

Diluted weighted-average shares outstanding (in shares)

245

Basic earnings per share (in dollars per share)

Earnings Per Share

^[1]

$ 5.20

$ 4.30

Basic weighted-average shares outstanding (in shares)

12

13

Diluted earnings per share (in dollars per share)

^[1]

$ 5.20

$ 4.29

Diluted weighted-average shares outstanding (in shares)

12

13

[1]

Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.

[2]

Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes approximately 3 million and 5 million common stock equivalents for the three months ended December 31, 2018 and 2017, respectively, because their effect would be dilutive. The computation excludes 1 million and 2 million of common stock equivalents for the three months ended December 31, 2018, and 2017 respectively, because their effect would have been anti-dilutive.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 2,977	$ 2,522
Investment securities:
Net unrealized gain (loss)	8	9
Income tax effect	(2)	(3)
Reclassification adjustment for net (gain) loss realized in net income	0	(28)
Income tax effect	0	10
Defined benefit pension and other postretirement plans:
Net unrealized actuarial gain (loss) and prior service credit (cost)	(7)	0
Income tax effect	1	0
Derivative instruments classified as cash flow hedges:
Net unrealized gain (loss)	38	(1)
Income tax effect	(10)	(5)
Reclassification adjustment for net (gain) loss realized in net income	(25)	11
Income tax effect	5	(2)
Foreign currency translation adjustments	(287)	334
Other comprehensive income (loss), net of tax	(279)	325
Comprehensive income	$ 2,698	$ 2,847

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - 3 months ended Dec. 31, 2018 - USD ($)
shares in Millions, $ in Millions

Total

U.K.& I preferred stock

Europe preferred stock

Class A common stock

^[3]

Preferred Stock

U.K.& I preferred stock

Preferred Stock

Europe preferred stock

Common Stock

Class A common stock

Common Stock

Class B common stock

Common Stock

Class C common stock

Right to Recover for Covered Losses

Additional Paid-in Capital

Accumulated Income

Accumulated Other Comprehensive Income

Beginning balance (in shares) at Sep. 30, 2018

2

3

1,768

245

12

Beginning balance at Sep. 30, 2018

$ 34,006

$ 5,470

$ (7)

$ 16,678

$ 11,318

$ 547

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

2,977

Other comprehensive income (loss), net of tax

(279)

Comprehensive income

2,698

Adoption of new accounting standards (Note 1)

400

393

7

VE territory covered losses incurred (Note 4)

(91)

Recovery through conversion rate adjustment (Note 4 and Note 9)

0

$ 5

$ 1

(6)

6

Conversion of class C common stock upon sales into public market (in shares)

^[1]

0

Vesting of restricted stock and performance-based shares (in shares)

3

Share-based compensation, net of forfeitures (Note 11)

100

Restricted stock and performance-based shares settled in cash for taxes (in shares)

(1)

Restricted stock and performance-based shares settled in cash for taxes

(101)

Cash proceeds from issuance of common stock under employee equity plans (in shares)

1

Cash proceeds from issuance of common stock under employee equity plans

48

Cash dividends declared and paid, at a quarterly amount of $0.25 per as-converted share (Note 9)

(572)

Repurchase of class A common stock (Note 9) (in shares)

(17)

^[2]

(17)

Repurchase of class A common stock (Note 9)

$ (2,393)

(185)

(2,208)

Ending balance (in shares) at Dec. 31, 2018

2

3

1,754

245

12

Ending balance at Dec. 31, 2018

$ 34,095

$ 5,464

$ (92)

$ 16,540

$ 11,908

$ 275

[1]	Increase or decrease in conversion of class C common stock is less than one million shares.
[2]	All shares repurchased in the open market have been retired and constitute authorized but unissued shares.
[3]	Figures in the table may not recalculate exactly due to rounding. Shares repurchased in the open market reflect repurchases settled during the three months ended December 31, 2018 and 2017. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017, respectively, and exclude repurchases traded but not yet settled on or before December 31, 2018 and 2017, respectively.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parentheticals)	3 Months Ended
	Dec. 31, 2018 $ / shares
Consolidated Statement of Changes in Equity (Parenthetical) [Abstract]
Cash dividends declared and paid, quarterly, per as-converted share	$ 0.25

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating Activities
Net income	$ 2,977	$ 2,522
Adjustments to reconcile net income to net cash provided by operating activities:
Client incentives (Note 2)	1,456	1,326
Share-based compensation (Note 11)	100	68
Depreciation and amortization of property, equipment, technology and intangible assets	159	145
Deferred income taxes	139	(919)
Right to recover for covered losses recorded in equity (Note 4)	(91)	(3)
Other	9	(21)
Change in operating assets and liabilities:
Settlement receivable	(1,551)	(180)
Accounts receivable	(200)	(146)
Client incentives	(1,361)	(986)
Other assets	(37)	141
Accounts payable	(46)	(51)
Settlement payable	1,739	275
Accrued and other liabilities	(54)	794
Accrued litigation (Note 13)	55	(152)
Net cash provided by operating activities	3,294	2,813
Investing Activities
Purchases of property, equipment and technology	(157)	(141)
Investment securities:
Purchases	(1,124)	(1,636)
Proceeds from maturities and sales	1,233	1,076
Purchases of / contributions to other investments	(22)	(6)
Net cash used in investing activities	(70)	(707)
Financing Activities
Repurchase of class A common stock (Note 9)	(2,393)	(1,778)
Repayments of long-term debt	0	(1,750)
Dividends paid (Note 9)	(572)	(458)
Cash proceeds from issuance of common stock under employee equity plans	48	53
Restricted stock and performance-based shares settled in cash for taxes	(101)	(88)
Net cash used in financing activities	(3,018)	(4,021)
Effect of exchange rate changes on cash and cash equivalents	(68)	80
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	138	(1,835)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period (Note 3)	10,977	12,011
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period (Note 3)	11,115	10,176
Supplemental Disclosure
Income taxes paid, net of refunds	168	183
Interest payments on debt (Note 6)	234	241
Accruals related to purchases of property, equipment and technology	$ 34	$ 26

Summary of Significant Accounting Policies

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1—Summary of Significant Accounting Policies

Organization. Visa Inc. (“Visa” or the “Company”) is a global payments technology company that enables fast, secure and reliable electronic payments across more than 200 countries and territories. Visa and its wholly-owned consolidated subsidiaries, including Visa U.S.A. Inc. (“Visa U.S.A.”), Visa International Service Association (“Visa International”), Visa Worldwide Pte. Limited, Visa Europe Limited (“Visa Europe”), Visa Canada Corporation (“Visa Canada”), Visa Technology & Operations LLC and CyberSource Corporation, operate one of the world’s largest retail electronic payments networks — VisaNet — which facilitates authorization, clearing and settlement of payment transactions and enables the Company to provide its financial institution and merchant clients a wide range of products, platforms and value-added services. VisaNet also offers fraud protection for account holders and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for account holders on Visa products. In most cases, account holder and merchant relationships belong to, and are managed by, Visa’s financial institution clients.

Consolidation and basis of presentation. The accompanying unaudited consolidated financial statements include the accounts of Visa and its consolidated entities and are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company consolidates its majority-owned and controlled entities, including variable interest entities (“VIEs”) for which the Company is the primary beneficiary. The Company’s investments in VIEs have not been material to its consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation.

The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (SEC) requirements for Quarterly Reports on Form 10-Q and, consequently, do not include all of the annual disclosures required by U.S. GAAP. Reference should be made to the Visa Annual Report on Form 10-K for the year ended September 30, 2018 for additional disclosures, including a summary of the Company’s significant accounting policies.

In the opinion of management, the accompanying unaudited consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented.

Recently Issued and Adopted Accounting Pronouncements.

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of goods or services to customers. This new revenue standard replaces all existing revenue recognition guidance in U.S. GAAP. Subsequently, the FASB also issued a series of amendments to the new revenue standard. The new revenue standard changes the classification and timing of recognition of certain client incentives and marketing-related funds paid to customers, as well as revenues and expenses for market development funds and services provided to customers as an incentive. The Company adopted the standard effective October 1, 2018 using the modified retrospective transition method applied to the aggregate of all modifications for contracts not completed as of October 1, 2018. 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. See Note 2—Revenues for the impact of the new revenue standard on the accompanying unaudited consolidated financial statements as of and for the three months ended December 31, 2018.

The following table summarizes the cumulative transition adjustments for the adoption of the new revenue standard recorded on the October 1, 2018 consolidated balance sheet to reflect the aggregate impact to all contracts not completed as of October 1, 2018:



	Fiscal Year 2018 Closing Balance Sheet		Cumulative Transition Adjustment for New Revenue Standard		Fiscal Year 2019 Opening Balance Sheet
	(in millions)
Assets
Current portion of client incentives	$	340	$	199	$	539
Client incentives	538		614		1,152
Liabilities
Client incentives	2,834		241		3,075
Accrued liabilities	1,160		6		1,166
Deferred tax liabilities	4,618		108		4,726
Other liabilities	2,666		58		2,724
Equity
Accumulated income	11,318		400		11,718

In January 2016, the FASB issued ASU 2016-01, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. The Company adopted the standard effective October 1, 2018, using the modified retrospective transition method for marketable equity securities and the prospective method for non-marketable equity securities. The Company has elected to use the measurement alternative for non-marketable equity securities, defined as cost adjusted for changes from observable transactions for identical or similar investments of the same issuer, less impairment. The adoption did not have a material impact on the consolidated financial statements.

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. The Company will adopt the standard effective October 1, 2019 and expects to adopt using the modified retrospective transition method without restating comparative periods. The adoption is not expected to have a material impact on the consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, which requires that entities recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, which requires that a statement of cash flows includes the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. The Company adopted the standard effective October 1, 2018. The adoption impacted the presentation of transactions related to the U.S. litigation escrow account and customer collateral on the consolidated statements of cash flows. The prior period statement of cash flows have been retrospectively adjusted to reflect the impact of this ASU, which had no impact on the Company’s balance sheets, statements of operations or statements of comprehensive income for any period.

In March 2017, the FASB issued ASU 2017-07, which requires that the service cost component of net periodic pension and postretirement benefit cost be presented in the same line item as other employee compensation costs, while the other components be presented separately as non-operating income (expense). In addition, only the service cost component is eligible for capitalization, when applicable. Retrospective application is required for the change in income statement presentation while the change in capitalized benefit cost is required to be applied prospectively. The Company adopted the standard effective October 1, 2018, which did not have a material impact on the consolidated financial statements. The service cost component of net periodic pension and postretirement benefit cost is presented in personnel expenses while the other components are presented in other non-operating expense on the Company’s consolidated statement of operations. The Company did not apply the standard retrospectively for the change in income statement presentation as the impact would have been immaterial.

In May 2017, the FASB issued ASU 2017-09, which amends the scope of modification accounting for share-based payment arrangements. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.

Revenues

3 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenues

Note 2—Revenues

Impact of the New Revenue Standard

The following tables summarize the impact of the new revenue standard on the Company’s consolidated statement of operations for the three months ended December 31, 2018 and the consolidated balance sheet as of December 31, 2018:



	For the Three Months Ended December 31, 2018
	As Reported		Impact of the New Revenue Standard			Results Under Prior Revenue Standard
	(in millions)
Net revenues	$	5,506	$	(52	)	$	5,454

Operating Expenses
Marketing	276		(30		)	246
Professional fees	91		(3		)	88
General and administrative	276		(3		)	273
Total operating expenses	1,789		(36		)	1,753
Operating income	3,717		(16		)	3,701

Income before income taxes	3,630		(16		)	3,614
Income tax provision	653		(1		)	652
Net income	2,977		(15		)	2,962



	December 31, 2018
	As Reported		Impact of the New Revenue Standard			Results Under Prior Revenue Standard
	(in millions)
Assets
Current portion of client incentives	$	547	$	(198	)	$	349
Client incentives	1,264		(661		)	603
Liabilities
Accounts payable	124		(23		)	101
Client incentives	3,345		(260		)	3,085
Accrued liabilities	1,487		(7		)	1,480
Deferred tax liabilities	4,835		(109		)	4,726
Other liabilities	2,703		(45		)	2,658
Equity
Accumulated income	11,908		(415		)	11,493

Disaggregation of Revenues

The nature, amount, timing and uncertainty of the Company’s revenues and cash flows and how they are affected by economic factors are most appropriately depicted through the Company’s revenue categories and geographical markets. The following tables disaggregate the Company’s net revenues by revenue category and by geography for the three months ended December 31, 2018 and 2017:



	Three Months Ended December 31,
	2018			2017
	(in millions)
Service revenues	$	2,342		$	2,146
Data processing revenues	2,470			2,147
International transaction revenues	1,851			1,666
Other revenues	299			229
Client incentives	(1,456		)	(1,326		)
Net revenues	$	5,506		$	4,862



	Three Months Ended December 31,
	2018			2017
	(in millions)
U.S.	$	2,508		$	2,265
International	2,998		2,597
Net revenues	$	5,506		$	4,862

Revenue recognition. 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 costs incurred under client incentives arrangements. 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 revenues, net of sales and other similar taxes, as the payment network services are performed. 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.

Service revenues consist of revenues earned for services provided in support of client usage of Visa products. Current quarter service revenues are primarily assessed using a calculation of current 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, 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 is different from that of the merchant. International transaction revenues are primarily generated by cross-border payments and cash volume.

Other revenues consist mainly of license fees for use of the Visa brand, fees for account holder services, licensing and certification and other activities related to the Company's acquired entities. Other revenues also include optional services or 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 revenues recognized 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 or 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.

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalent

3 Months Ended

Dec. 31, 2018

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents

Note 3—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents

The Company’s cash and cash equivalents include cash and certain highly liquid investments with original maturities of 90 days or less from the date of purchase. Cash equivalents are primarily recorded at cost, which approximates fair value due to their generally short maturities. The Company defines restricted cash and restricted cash equivalents as cash and cash equivalents that cannot be withdrawn or used for general operating activities.

The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:



	December 31,				September 30,
	2018		2017		2018		2017
	(in millions)
Cash and cash equivalents	$	8,289	$	8,138	$	8,162	$	9,874
Restricted cash and restricted cash equivalents:
U.S. litigation escrow	1,496		883		1,491		1,031
Customer collateral	1,330		1,155		1,324		1,106
Cash, cash equivalents, restricted cash and restricted cash equivalents	$	11,115	$	10,176	$	10,977	$	12,011

U.S. and Europe Retrospective Responsibility Plans

3 Months Ended

Dec. 31, 2018

Retrospective Responsibility Plan [Abstract]

U.S. and Europe Retrospective Responsibility Plans

Note 4—U.S. and Europe Retrospective Responsibility Plans

U.S. Retrospective Responsibility Plan

Under the terms of the U.S. retrospective responsibility plan, the Company maintains an escrow account from which settlements of, or judgments in, certain litigation referred to as the “U.S. covered litigation” are paid. The escrow funds are held in money market investments along with interest income earned, less applicable taxes and are classified as restricted cash equivalents on the consolidated balance sheets. The balance of the escrow account was $1.5 billion at December 31, 2018 and September 30, 2018. See Note 13—Legal Matters.

The accrual related to the U.S. covered litigation could be either higher or lower than the litigation escrow account balance. The Company did not record an additional accrual for the U.S. covered litigation during the three months ended December 31, 2018. See Note 13—Legal Matters.

Europe Retrospective Responsibility Plan

Visa Inc., Visa International and Visa Europe are parties to certain existing and potential litigation relating to the setting of multilateral interchange fee rates in the Visa Europe territory (the “VE territory covered litigation”). Under the terms of the Europe retrospective responsibility plan, the Company is entitled to recover certain losses resulting from VE territory covered litigation (the “VE territory covered losses”) through a periodic adjustment to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. VE territory covered losses are recorded in “right to recover for covered losses” within equity before the corresponding adjustment to the applicable conversion rate is effected. Adjustments to the conversion rate may be executed once in any six-month period unless a single, individual loss greater than €20 million is incurred, in which case, the six-month limitation does not apply. When the adjustment to the conversion rate is made, the amount previously recorded in “right to recover for covered losses” as contra-equity is then recorded against the book value of the preferred stock within stockholders’ equity.

During the three months ended December 31, 2018, the Company recovered $6 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 conversion rates applicable to the UK&I and Europe preferred stock were reduced from 12.955 and 13.888, respectively, as of September 30, 2018 to 12.939 and 13.886, respectively, as of December 31, 2018.

The following table sets forth the activities related to VE territory covered losses in preferred stock and “right to recover for covered losses” within equity during the three months ended December 31, 2018. VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 13—Legal Matters.



	Preferred Stock						Right to Recover for Covered Losses
	UK&I			Europe			Right to Recover for Covered Losses
	(in millions)
Balance as of September 30, 2018	$	2,291		$	3,179		$	(7	)
VE territory covered losses incurred	—			—			(91		)
Recovery through conversion rate adjustment	(5		)	(1		)	6
Balance as of December 31, 2018	$	2,286		$	3,178		$	(92	)

The following table⁽¹⁾ sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders’ equity within the Company’s consolidated balance sheets as of December 31, 2018 and September 30, 2018:



	December 31, 2018						September 30, 2018
	As-Converted Value of Preferred Stock⁽²⁾			Book Value of Preferred Stock			As-Converted Value of Preferred Stock⁽³⁾			Book Value of Preferred Stock
	(in millions)
UK&I preferred stock	$	4,235		$	2,286		$	4,823		$	2,291
Europe preferred stock	5,784			3,178			6,580			3,179
Total	10,019			5,464			11,403			5,470
Less: right to recover for covered losses	(92		)	(92		)	(7		)	(7		)
Total recovery for covered losses available	$	9,927		$	5,372		$	11,396		$	5,463


⁽¹⁾	Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.

⁽²⁾

The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of December 31, 2018; (b)12.939 and 13.886, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of December 31, 2018, respectively; and (c) $131.94, Visa’s class A common stock closing stock price as of December 31, 2018.

⁽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, 2018; (b)12.955 and 13.888, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2018, respectively; and (c) $150.09, Visa’s class A common stock closing stock price as of September 30, 2018.

Fair Value Measurements and Investments

3 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements and Investments

Note 5—Fair Value Measurements and Investments

Assets and Liabilities Measured at Fair Value on a Recurring Basis



	Fair Value Measurements Using Inputs Considered as
	Level 1				Level 2
	December 31, 2018		September 30, 2018		December 31, 2018		September 30, 2018
	(in millions)
Assets
Cash equivalents and restricted cash:
Money market funds	$	7,063	$	6,252
U.S. government-sponsored debt securities					$	98	$	1,048
Investment securities:
Marketable equity securities	123		113
U.S. government-sponsored debt securities					5,234		5,008
U.S. Treasury securities	2,236		2,508
Other current and non-current assets:
Foreign exchange derivative instruments					113		78
Total	$	9,422	$	8,873	$	5,445	$	6,134
Liabilities
Accrued liabilities:
Foreign exchange derivative instruments					$	28	$	22
Total	$	—	$	—	$	28	$	22

There were no transfers between Level 1 and Level 2 assets during the three months ended December 31, 2018.

Level 1 assets. Money market funds, publicly-traded equity securities and U.S. Treasury securities are classified as Level 1 within the fair value hierarchy, as fair value is based on quoted prices in active markets.

Level 2 assets and liabilities. The fair value of U.S. government-sponsored debt securities, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. Foreign exchange derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. There were no substantive changes to the valuation techniques and related inputs used to measure fair value during the three months ended December 31, 2018.

Marketable equity securities. Marketable equity securities are publicly traded and measured at fair value within Level 1 of the fair value hierarchy, as fair value is based on quoted prices in active markets. On October 1, 2018, the Company adopted ASU 2016-01 which changed the Company’s accounting for marketable equity securities. Beginning on October 1, 2018, unrealized gains and losses from changes in fair value of marketable equity securities are recognized in non-operating income (expense).

U.S. government-sponsored debt securities and U.S. Treasury securities. The Company considers U.S. government-sponsored debt securities and U.S. Treasury securities to be available-for-sale and held $7.5 billion of these investment securities as of December 31, 2018 and September 30, 2018. A majority of the Company’s long-term available-for-sale investment securities are due within one to five years.

Assets Measured at Fair Value on a Non-recurring Basis

Non-marketable equity securities. The Company’s non-marketable equity securities are investments in privately held companies without readily determinable market values. These investments are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity and the fact that inputs used to measure fair value are unobservable and require management’s judgment. On October 1, 2018, the Company adopted ASU 2016-01 which changed the Company’s accounting for non-marketable equity securities. Beginning on October 1, 2018, the Company’s policy is to adjust 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 in the market. All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in non-operating income (expense).

Non-marketable equity securities totaled $159 million and $137 million at December 31, 2018 and September 30, 2018, respectively, and are classified in other assets on the consolidated balance sheets. During the three months ended December 31, 2018, there were no upward or downward adjustments made to the carrying value of non-marketable equity securities. During the three months ended December 31, 2018 and 2017, there were no significant impairments of non-marketable equity securities.

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.

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, 2018, and concluded that there was no impairment. No recent events or changes in circumstances indicate that impairment existed at December 31, 2018.

Gains and Losses on Marketable and Non-marketable Equity Securities

The Company recognized a net unrealized loss of $20 million, and no net realized gains or losses on its marketable and non-marketable equity securities for the three months ended December 31, 2018.

Other Fair Value Disclosures

Long-term debt. Debt instruments are measured at amortized cost on the Company’s consolidated balance sheets. The fair value of the debt instruments, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of long-term debt was $16.6 billion and $16.7 billion, respectively, as of December 31, 2018. The carrying value and estimated fair value of long-term debt were both $16.6 billion as of September 30, 2018.

Other financial instruments not measured at fair value. The following financial instruments are not measured at fair value on the Company’s unaudited consolidated balance sheet at December 31, 2018, but disclosure of their fair values is required: time deposits recorded in prepaid expenses and other current assets, settlement receivable and payable and customer collateral. The estimated fair value of such instruments at December 31, 2018 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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Debt

3 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

Note 6—Debt

The Company had outstanding debt as follows:



	December 31, 2018			September 30, 2018			Effective Interest Rate
	(in millions, except percentages)
2.20% Senior Notes due December 2020	$	3,000		$	3,000		2.30	%
2.15% Senior Notes due September 2022	1,000			1,000			2.30	%
2.80% Senior Notes due December 2022	2,250			2,250			2.89	%
3.15% Senior Notes due December 2025	4,000			4,000			3.26	%
2.75% Senior Notes due September 2027	750			750			2.91	%
4.15% Senior Notes due December 2035	1,500			1,500			4.23	%
4.30% Senior Notes due December 2045	3,500			3,500			4.37	%
3.65% Senior Notes due September 2047	750			750			3.73	%
Total debt	16,750			16,750
Unamortized discounts and debt issuance costs	(117		)	(120		)
Total long-term debt	$	16,633		$	16,630

The Company recognized interest expense for its senior notes of $137 million and $138 million for the three months ended December 31, 2018 and 2017, respectively, as non-operating expense.

Settlement Guarantee Management

3 Months Ended

Dec. 31, 2018

Settlement Guarantee Management [Abstract]

Settlement Guarantee Management

Note 7—Settlement Guarantee Management

The Company indemnifies its clients for settlement losses suffered due to failure of any other client to fund its settlement obligations in accordance with the Visa operating rules. This indemnification creates settlement risk for the Company due to the difference in timing between the date of a payment transaction and the date of subsequent settlement.

Historically, the Company has experienced minimal losses as a result of its settlement risk guarantee. However, the Company’s future obligations, which could be material under its guarantees, are not determinable as they are dependent upon future events.

The Company’s settlement exposure is limited to the amount of unsettled Visa payment transactions at any point in time, which vary significantly day to day. The Company’s maximum settlement exposure was $88.2 billion and the average daily settlement exposure was $56.1 billion during the three months ended December 31, 2018.

The Company maintains and regularly reviews global settlement risk policies and procedures to manage settlement exposure, which may require clients to post collateral if certain credit standards are not met. At December 31, 2018 and September 30, 2018, the Company held collateral as follows:



	December 31, 2018		September 30, 2018
	(in millions)
Cash equivalents	$	1,720	$	1,708
Pledged securities at market value	307		192
Letters of credit	1,346		1,382
Guarantees	952		860
Total	$	4,325	$	4,142

Cash equivalent collateral reflected in customer collateral on the consolidated balance sheets is held by a custodian in an account under the Company’s name and ownership. At December 31, 2018 and September 30, 2018, $390 million and $384 million, respectively, of cash equivalent collateral is excluded from the consolidated balance sheets as clients retain beneficial ownership of it and it is only accessible to the Company in the event of default by the client on its settlement obligations. All other collateral is excluded from the consolidated balance sheets.

Pension and Other Postretirement Benefits

3 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits

Note 8—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 United States. The Company also sponsors other pension benefit plans that provide benefits for internationally-based employees at certain non-U.S. locations. The components of net periodic benefit cost presented below include the U.S. pension plans and the non-U.S. pension 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.



	Pension Benefits
	U.S. Plans						Non-U.S. Plans
	Three Months Ended December 31,						Three Months Ended December 31,
	2018			2017			2018			2017
	(in millions)
Service cost	$	—		$	—		$	1		$	1
Interest cost	8			8			3			3
Expected return on plan assets	(18		)	(17		)	(4		)	(5		)
Total net periodic benefit cost (income)	$	(10	)	$	(9	)	$	—		$	(1	)

Stockholders' Equity

3 Months Ended

Dec. 31, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Note 9—Stockholders' Equity

As-converted class A common stock. The following table⁽¹⁾ presents number of shares of each series and class and the number of shares of class A common stock on an as-converted basis:



	December 31, 2018					September 30, 2018
	Shares Outstanding	Conversion Rate Into Class A Common Stock		As-converted Class A Common Stock⁽²⁾		Shares Outstanding	Conversion Rate Into Class A Common Stock		As-converted Class A Common Stock⁽²⁾
	(in millions, except conversion rates)
UK&I preferred stock	2	12.9390		32	⁽³⁾	2	12.9550		32	⁽³⁾
Europe preferred stock	3	13.8860		44	⁽³⁾	3	13.8880		44	⁽³⁾
Class A common stock⁽⁴⁾	1,754	—		1,754		1,768	—		1,768
Class B common stock	245	1.6298	⁽⁵⁾	400		245	1.6298	⁽⁵⁾	400
Class C common stock	12	4.0000		47		12	4.0000		47
Total				2,277					2,291


⁽¹⁾	Figures in the table may not recalculate exactly due to rounding.


⁽²⁾	As-converted class A common stock is calculated based on unrounded numbers.


⁽³⁾	The reduction in equivalent number of shares of class A common stock was less than one million shares during the three months ended December 31, 2018.


⁽⁴⁾	Class A common stock shares outstanding reflect repurchases settled on or before December 31, 2018 and September 30, 2018.


⁽⁵⁾	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.

The following table presents effective price per share and recovery of VE territory covered losses through conversion rate adjustments:



	Three Months Ended December 31, 2018				Twelve Months Ended September 30, 2018
	Preferred Stock
	UK&I		Europe		UK&I		Europe
	(in millions, except per share data)
Effective price per share⁽¹⁾	$	137.19	$	137.19	$	113.05	$	112.92
Recovery through conversion rate adjustment	$	5	$	1	$	35	$	21

⁽¹⁾

Effective price per share for the quarter 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 the fiscal year is calculated using the weighted-average effective prices of the respective adjustments made during the year.

Common stock repurchases. The following table⁽¹⁾ presents share repurchases in the open market for the following periods:



	Three Months Ended December 31,
	2018		2017
	(in millions, except per share data)
Shares repurchased in the open market⁽²⁾	17		16
Average repurchase price per share⁽³⁾	$	138.11	$	110.24
Total cost	$	2,393	$	1,778

⁽¹⁾

Figures in the table may not recalculate exactly due to rounding. Shares repurchased in the open market reflect repurchases settled during the three months ended December 31, 2018 and 2017. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017, respectively, and exclude repurchases traded but not yet settled on or before December 31, 2018 and 2017, respectively.


⁽²⁾	All shares repurchased in the open market have been retired and constitute authorized but unissued shares.


⁽³⁾	Average repurchase price per share is calculated based on unrounded numbers.

As of December 31, 2018, the Company’s January 2018 share repurchase program had remaining authorized funds of $1.8 billion for share repurchase. All share repurchase programs authorized prior to January 2018 have been completed. In January 2019, the Company’s board of directors authorized an additional $8.5 billion share repurchase program.

Dividends. On January 29, 2019, the Company’s board of directors declared a quarterly cash dividend of $0.25 per share of class A common stock (determined in the case of class B and C common stock and UK&I and Europe preferred stock on an as-converted basis). The cash dividend will be paid on March 5, 2019, to all holders of record as of February 15, 2019. The Company declared and paid $572 million in dividends to holders of the Company’s common stock during the three months ended December 31, 2018.

Earnings Per Share

3 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Note 10—Earnings Per Share

Basic earnings per share is computed by dividing net income available to each class of shares by the weighted-average number of shares of common stock outstanding and participating securities during the period. Net income is allocated to each class of common stock and participating securities based on its proportional ownership on an as-converted basis. The weighted-average number of shares outstanding of each class of common stock reflects changes in ownership over the periods presented. See Note 9—Stockholders' Equity.

Diluted earnings per share is computed by dividing net income available by the weighted-average number of shares of common stock outstanding, participating securities and, if dilutive, potential class A common stock equivalent shares outstanding during the period. Dilutive class A common stock equivalents may consist of: (1) shares of class A common stock issuable upon the conversion of UK&I and Europe preferred stock and class B and C common stock based on the conversion rates in effect through the period, and (2) incremental shares of class A common stock calculated by applying the treasury stock method to the assumed exercise of employee stock options, the assumed purchase of stock under the Company’s Employee Stock Purchase Plan and the assumed vesting of unearned performance shares.

The following table⁽¹⁾ presents earnings per share for the three months ended December 31, 2018:



	Basic Earnings Per Share					Diluted Earnings Per Share
	(in millions, except per share data)
	Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)		Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)
Class A common stock	$	2,290	1,760	$	1.30	$	2,977	2,291	⁽³⁾	$	1.30
Class B common stock	521		245	$	2.12	$	520	245		$	2.12
Class C common stock	61		12	$	5.20	$	61	12		$	5.20
Participating securities⁽⁴⁾	105		Not presented	Not presented		$	105	Not presented		Not presented
Net income	$	2,977

The following table⁽¹⁾ presents earnings per share for the three months ended December 31, 2017:



	Basic Earnings Per Share					Diluted Earnings Per Share
	(in millions, except per share data)
	Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)		Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)
Class A common stock	$	1,945	1,811	$	1.07	$	2,522	2,353	⁽³⁾	$	1.07
Class B common stock	435		245	$	1.77	$	434	245		$	1.77
Class C common stock	54		13	$	4.30	$	54	13		$	4.29
Participating securities⁽⁴⁾	88		Not presented	Not presented		$	87	Not presented		Not presented
Net income	$	2,522


⁽¹⁾	Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.

⁽²⁾

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 400 million and 405 million for the three months ended December 31, 2018 and 2017, respectively. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 47 million and 51 million for the three months ended December 31, 2018 and 2017, respectively. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three months ended December 31, 2018 and 2017, and 44 million of as-converted Europe preferred stock for the three months ended December 31, 2018 and 2017.

⁽³⁾

Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes approximately 3 million and 5 million common stock equivalents for the three months ended December 31, 2018 and 2017, respectively, because their effect would be dilutive. The computation excludes 1 million and 2 million of common stock equivalents for the three months ended December 31, 2018, and 2017 respectively, because their effect would have been anti-dilutive.

⁽⁴⁾

Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company’s UK&I and Europe preferred stock, restricted stock 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.

Share-based Compensation

3 Months Ended

Dec. 31, 2018

Share-based Compensation [Abstract]

Share-based Compensation

Note 11—Share-based Compensation

The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan, or the EIP, during the three months ended December 31, 2018:



	Granted	Weighted-Average Grant Date Fair Value		Weighted-Average Exercise Price
Non-qualified stock options	1,109,645	$	25.89	$	134.76
Restricted stock units (“RSUs”)	2,503,888	$	134.76
Performance-based shares⁽¹⁾	540,538	$	153.42


⁽¹⁾	Represents the maximum number of performance-based shares which could be earned.

The Company’s non-qualified stock options and RSUs are equity awards with service-only conditions and are accordingly expensed on a straight-line basis over the vesting period. The Company’s performance-based shares are equity awards with service, market and performance conditions that are accounted for using the graded-vesting method. The Company recorded share-based compensation cost related to the EIP of $95 million and $64 million for the three months ended December 31, 2018 and 2017, respectively, net of estimated forfeitures, which are adjusted as appropriate.

Income Taxes

3 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Note 12—Income Taxes

The effective income tax rates were 18% and 22% for the three months ended December 31, 2018 and 2017, respectively. The effective tax rate for the three months ended December 31, 2018 differs from the effective tax rate in the same prior-year period primarily due to the effects of U.S. tax reform legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017, as discussed below:


•	The Tax Act reduced the statutory federal corporate income tax rate from 35% to 21% effective January 1, 2018. In fiscal 2018, the Company’s statutory federal corporate rate was a blended rate of 24.5%. Federal tax expense for the three months ended December 31, 2018 was determined at a 21% tax rate compared to the 24.5% tax rate in the prior-year period;


•	The Tax Act enacted a new deduction for foreign-derived intangible income (“FDII”) and a new tax on global intangible low-tax income (“GILTI”). Both FDII and GILTI became effective for the Company on October 1, 2018; and


•	The absence of:


▪	a $1.1 billion non-recurring, non-cash benefit from the remeasurement of deferred tax balances recorded in the three months ended December 31, 2017, in connection with the reduction in U.S. federal tax rate enacted by the Tax Act; and


▪	a $1.1 billion one-time transition tax expense on certain untaxed foreign earnings recorded in the three months ended December 31, 2017, in connection with the requirement enacted by the Tax Act.

The Company previously recorded provisional amounts for the transition tax and the tax effects of various other tax provisions enacted by the Tax Act. As permitted by ASU 2018-05, the Company completed the determination of the accounting impacts of the transition tax and the tax effects of these various tax provisions in the three months ended December 31, 2018. The adjustments to the provisional amounts were not material. In addition, the Company has adopted the accounting policy of accounting for taxes on GILTI in the period that it is subject to such tax.

During the three months ended December 31, 2018, the Company’s gross unrecognized tax benefits increased by $38 million, all of which would favorably impact the effective tax rate if recognized. The change in unrecognized tax benefits is primarily related to various tax positions across several jurisdictions. During the three months ended December 31, 2018 and 2017, there were no significant changes in interest and penalties related to uncertain tax positions.

The Company’s tax filings are subject to examination by the U.S. federal, state and foreign taxing authorities. The timing and outcome of the final resolutions of the various ongoing income tax examinations are highly uncertain. It is not reasonably possible to estimate the increase or decrease in unrecognized tax benefits within the next twelve months.

Legal Matters

3 Months Ended

Dec. 31, 2018

Legal Matters [Abstract]

Legal Matters

Note 13—Legal Matters

The Company is party to various legal and regulatory proceedings. Some of these proceedings involve complex claims that are subject to substantial uncertainties and unascertainable damages. Accordingly, except as disclosed, the Company has not established reserves or ranges of possible loss related to these proceedings, as at this time in the proceedings, the matters do not relate to a probable loss and/or the amount or range of losses are not reasonably estimable. Although the Company believes that it has strong defenses for the litigation and regulatory proceedings described below, it could, in the future, incur judgments or fines or enter into settlements of claims that could have a material adverse effect on the Company’s financial position, results of operations or cash flows. From time to time, the Company may engage in settlement discussions or mediations with respect to one or more of its outstanding litigation matters, either on its own behalf or collectively with other parties.

The litigation accrual is an estimate and is based on management’s understanding of its litigation profile, the specifics of each case, advice of counsel to the extent appropriate and management’s best estimate of incurred loss as of the balance sheet date.

The following table summarizes the activity related to accrued litigation:



	Three Months Ended December 31,
	2018			2017
	(in millions)
Balance at beginning of period	$	1,434		$	982
Provision for uncovered legal matters	7			—
Provision for covered legal matters	90			—
Payments for legal matters	(42		)	(152		)
Balance at end of period	$	1,489		$	830

Accrual Summary—U.S. Covered Litigation

Visa Inc., Visa U.S.A. and Visa International are parties to certain legal proceedings that are covered by the U.S. retrospective responsibility plan, which the Company refers to as the U.S. covered litigation. See further discussion below under U.S. Covered Litigation and Note 4—U.S. and Europe Retrospective Responsibility Plans. An accrual for the U.S. covered litigation and a charge to the litigation provision are recorded when a loss is deemed to be probable and reasonably estimable. In making this determination, the Company evaluates available information, including but not limited to actions taken by the litigation committee. The total accrual related to the U.S. covered litigation could be either higher or lower than the escrow account balance.

The following table summarizes the activity related to U.S. covered litigation:



	Three Months Ended December 31,
	2018		2017
	(in millions)
Balance at beginning of period	$	1,428	$	978
Payments for U.S. covered litigation	—		(150		)
Balance at end of period	$	1,428	$	828

Accrual Summary—VE Territory Covered Litigation

Visa Inc., Visa International and Visa Europe are parties to certain legal proceedings that are covered by the Europe retrospective responsibility plan. Unlike the U.S. retrospective responsibility plan, the Europe retrospective responsibility plan does not have an escrow account that is used to fund settlements or judgments. The Company is entitled to recover VE territory covered losses through periodic adjustments to the conversion rates applicable to the UK&I preferred stock and Europe preferred stock. An accrual for the VE territory covered losses and a reduction to stockholders’ equity will be recorded when the loss is deemed to be probable and reasonably estimable. See further discussion below under VE Territory Covered Litigation and Note 4—U.S. and Europe Retrospective Responsibility Plans.

The following table summarizes the activity related to VE territory covered litigation:



	Three Months Ended December 31,
	2018			2017
	(in millions)
Balance at beginning of period	$	—		$	1
Accrual for VE territory covered litigation	90			—
Payments for VE territory covered litigation	(35		)	(1		)
Balance at end of period	$	55		$	—

U.S. Covered Litigation

Interchange Multidistrict Litigation (MDL) – Putative Class Actions

On December 6, 2018, the district court held a hearing on the Damages Class plaintiffs’ motion for preliminary approval of the Amended Settlement Agreement, and on January 24, 2019, the district court granted preliminary approval.

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 fail to state a claim against the bank defendants.

VE Territory Covered Litigation

UK Merchant Litigation

Since July 2013, in excess of 450 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 Visa International relating to interchange rates in Europe, and in some cases relating to fees charged by Visa and certain Visa rules. As of the filing date, Visa Europe, Visa Inc. and Visa International have settled the claims asserted by over 75 Merchants, leaving more than 350 Merchants with outstanding claims. In addition, over 30 additional Merchants have threatened to commence similar proceedings.

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.

Other Litigation

European Commission Proceedings

Inter-regional Interchange Investigation. On December 4, 2018, the European Commission (EC) announced formal public consultation (known as “market testing”) of commitments proposed by Visa pursuant to Article 9 of Council Regulation (EC) No 1/2003 in order for the EC to conclude its investigation. Subject to market testing, the EC intends to adopt a decision declaring the commitments to be binding on Visa and concluding that there are no longer grounds for action by the EC and without any finding of infringement of the law by Visa. If accepted by the EC, the proposed commitments require Visa to cap its inter-regional multilateral interchange rates at 1.50% credit and 1.15% debit for “Card-Not-Present” transactions and 0.30% credit and 0.20% debit for “Card Present” transactions on consumer debit and credit cards issued outside of the European Economic Area when used at merchants located inside of the European Economic Area. The commitments would last for a period of five years following implementation. No fine will be imposed against Visa, and the commitments are proposed without prejudice to Visa’s position that its conduct did not infringe any law. The EC’s market testing was completed in January 2019, and the EC is expected to decide whether to formally adopt the proposed commitments in the first half of 2019.

EMV Chip Liability Shift

Plaintiffs filed a renewed motion for class certification on July 16, 2018, following an earlier denial of the motion without prejudice. Plaintiffs’ renewed motion was terminated without prejudice to reinstatement on October 17, 2018.

Kroger

The parties have stipulated that the litigation be stayed until February 2, 2019.

Nuts for Candy

On October 18, 2018, the court stayed the Nuts for Candy case pending the district court’s decision on preliminary approval of the Amended Settlement Agreement discussed above under Interchange Multidistrict Litigation (MDL) – Putative Class Actions, and pending final approval of that agreement if preliminary approval is granted.

Ohio Attorney General Civil Investigative Demand

On January 8, 2019, the State of Ohio Office of the Attorney General informed Visa that the investigation has been terminated.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Consolidation and basis of presentation

Consolidation and basis of presentation. The accompanying unaudited consolidated financial statements include the accounts of Visa and its consolidated entities and are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company consolidates its majority-owned and controlled entities, including variable interest entities (“VIEs”) for which the Company is the primary beneficiary. The Company’s investments in VIEs have not been material to its consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation.

The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (SEC) requirements for Quarterly Reports on Form 10-Q and, consequently, do not include all of the annual disclosures required by U.S. GAAP. Reference should be made to the Visa Annual Report on Form 10-K for the year ended September 30, 2018 for additional disclosures, including a summary of the Company’s significant accounting policies.

In the opinion of management, the accompanying unaudited consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented.

New Accounting Pronouncements, Policy

Recently Issued and Adopted Accounting Pronouncements.

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of goods or services to customers. This new revenue standard replaces all existing revenue recognition guidance in U.S. GAAP. Subsequently, the FASB also issued a series of amendments to the new revenue standard. The new revenue standard changes the classification and timing of recognition of certain client incentives and marketing-related funds paid to customers, as well as revenues and expenses for market development funds and services provided to customers as an incentive. The Company adopted the standard effective October 1, 2018 using the modified retrospective transition method applied to the aggregate of all modifications for contracts not completed as of October 1, 2018. 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. See Note 2—Revenues for the impact of the new revenue standard on the accompanying unaudited consolidated financial statements as of and for the three months ended December 31, 2018.

The following table summarizes the cumulative transition adjustments for the adoption of the new revenue standard recorded on the October 1, 2018 consolidated balance sheet to reflect the aggregate impact to all contracts not completed as of October 1, 2018:



	Fiscal Year 2018 Closing Balance Sheet		Cumulative Transition Adjustment for New Revenue Standard		Fiscal Year 2019 Opening Balance Sheet
	(in millions)
Assets
Current portion of client incentives	$	340	$	199	$	539
Client incentives	538		614		1,152
Liabilities
Client incentives	2,834		241		3,075
Accrued liabilities	1,160		6		1,166
Deferred tax liabilities	4,618		108		4,726
Other liabilities	2,666		58		2,724
Equity
Accumulated income	11,318		400		11,718

In January 2016, the FASB issued ASU 2016-01, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. The Company adopted the standard effective October 1, 2018, using the modified retrospective transition method for marketable equity securities and the prospective method for non-marketable equity securities. The Company has elected to use the measurement alternative for non-marketable equity securities, defined as cost adjusted for changes from observable transactions for identical or similar investments of the same issuer, less impairment. The adoption did not have a material impact on the consolidated financial statements.

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. The Company will adopt the standard effective October 1, 2019 and expects to adopt using the modified retrospective transition method without restating comparative periods. The adoption is not expected to have a material impact on the consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, which requires that entities recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, which requires that a statement of cash flows includes the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. The Company adopted the standard effective October 1, 2018. The adoption impacted the presentation of transactions related to the U.S. litigation escrow account and customer collateral on the consolidated statements of cash flows. The prior period statement of cash flows have been retrospectively adjusted to reflect the impact of this ASU, which had no impact on the Company’s balance sheets, statements of operations or statements of comprehensive income for any period.

In March 2017, the FASB issued ASU 2017-07, which requires that the service cost component of net periodic pension and postretirement benefit cost be presented in the same line item as other employee compensation costs, while the other components be presented separately as non-operating income (expense). In addition, only the service cost component is eligible for capitalization, when applicable. Retrospective application is required for the change in income statement presentation while the change in capitalized benefit cost is required to be applied prospectively. The Company adopted the standard effective October 1, 2018, which did not have a material impact on the consolidated financial statements. The service cost component of net periodic pension and postretirement benefit cost is presented in personnel expenses while the other components are presented in other non-operating expense on the Company’s consolidated statement of operations. The Company did not apply the standard retrospectively for the change in income statement presentation as the impact would have been immaterial.

In May 2017, the FASB issued ASU 2017-09, which amends the scope of modification accounting for share-based payment arrangements. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables)

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of Effect from Adoption of New Revenue Standard

The following table summarizes the cumulative transition adjustments for the adoption of the new revenue standard recorded on the October 1, 2018 consolidated balance sheet to reflect the aggregate impact to all contracts not completed as of October 1, 2018:



	Fiscal Year 2018 Closing Balance Sheet		Cumulative Transition Adjustment for New Revenue Standard		Fiscal Year 2019 Opening Balance Sheet
	(in millions)
Assets
Current portion of client incentives	$	340	$	199	$	539
Client incentives	538		614		1,152
Liabilities
Client incentives	2,834		241		3,075
Accrued liabilities	1,160		6		1,166
Deferred tax liabilities	4,618		108		4,726
Other liabilities	2,666		58		2,724
Equity
Accumulated income	11,318		400		11,718

Revenues (Tables)

3 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Impact of Adoption of New Revenue Standard

The following tables summarize the impact of the new revenue standard on the Company’s consolidated statement of operations for the three months ended December 31, 2018 and the consolidated balance sheet as of December 31, 2018:



	For the Three Months Ended December 31, 2018
	As Reported		Impact of the New Revenue Standard			Results Under Prior Revenue Standard
	(in millions)
Net revenues	$	5,506	$	(52	)	$	5,454

Operating Expenses
Marketing	276		(30		)	246
Professional fees	91		(3		)	88
General and administrative	276		(3		)	273
Total operating expenses	1,789		(36		)	1,753
Operating income	3,717		(16		)	3,701

Income before income taxes	3,630		(16		)	3,614
Income tax provision	653		(1		)	652
Net income	2,977		(15		)	2,962



	December 31, 2018
	As Reported		Impact of the New Revenue Standard			Results Under Prior Revenue Standard
	(in millions)
Assets
Current portion of client incentives	$	547	$	(198	)	$	349
Client incentives	1,264		(661		)	603
Liabilities
Accounts payable	124		(23		)	101
Client incentives	3,345		(260		)	3,085
Accrued liabilities	1,487		(7		)	1,480
Deferred tax liabilities	4,835		(109		)	4,726
Other liabilities	2,703		(45		)	2,658
Equity
Accumulated income	11,908		(415		)	11,493

Disaggregation of Revenue

Disaggregation of Revenues

The nature, amount, timing and uncertainty of the Company’s revenues and cash flows and how they are affected by economic factors are most appropriately depicted through the Company’s revenue categories and geographical markets. The following tables disaggregate the Company’s net revenues by revenue category and by geography for the three months ended December 31, 2018 and 2017:



	Three Months Ended December 31,
	2018			2017
	(in millions)
Service revenues	$	2,342		$	2,146
Data processing revenues	2,470			2,147
International transaction revenues	1,851			1,666
Other revenues	299			229
Client incentives	(1,456		)	(1,326		)
Net revenues	$	5,506		$	4,862



	Three Months Ended December 31,
	2018			2017
	(in millions)
U.S.	$	2,508		$	2,265
International	2,998		2,597
Net revenues	$	5,506		$	4,862

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalent (Tables)

3 Months Ended

Dec. 31, 2018

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]

Schedule of Cash and Cash Equivalents

The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:



	December 31,				September 30,
	2018		2017		2018		2017
	(in millions)
Cash and cash equivalents	$	8,289	$	8,138	$	8,162	$	9,874
Restricted cash and restricted cash equivalents:
U.S. litigation escrow	1,496		883		1,491		1,031
Customer collateral	1,330		1,155		1,324		1,106
Cash, cash equivalents, restricted cash and restricted cash equivalents	$	11,115	$	10,176	$	10,977	$	12,011

U.S. and Europe Retrospective Responsibility Plans (Tables)

3 Months Ended

Dec. 31, 2018

Retrospective Responsibility Plan [Abstract]

Schedule of Activities Related to Territory Covered Losses 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 equity during the three months ended December 31, 2018. VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 13—Legal Matters.



	Preferred Stock						Right to Recover for Covered Losses
	UK&I			Europe			Right to Recover for Covered Losses
	(in millions)
Balance as of September 30, 2018	$	2,291		$	3,179		$	(7	)
VE territory covered losses incurred	—			—			(91		)
Recovery through conversion rate adjustment	(5		)	(1		)	6
Balance as of December 31, 2018	$	2,286		$	3,178		$	(92	)

Schedule of As-converted and Book Value of Preferred Stock Available to Recover Europe Covered Losses

The following table⁽¹⁾ sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders’ equity within the Company’s consolidated balance sheets as of December 31, 2018 and September 30, 2018:



	December 31, 2018						September 30, 2018
	As-Converted Value of Preferred Stock⁽²⁾			Book Value of Preferred Stock			As-Converted Value of Preferred Stock⁽³⁾			Book Value of Preferred Stock
	(in millions)
UK&I preferred stock	$	4,235		$	2,286		$	4,823		$	2,291
Europe preferred stock	5,784			3,178			6,580			3,179
Total	10,019			5,464			11,403			5,470
Less: right to recover for covered losses	(92		)	(92		)	(7		)	(7		)
Total recovery for covered losses available	$	9,927		$	5,372		$	11,396		$	5,463


⁽¹⁾	Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.

⁽²⁾

The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of December 31, 2018; (b)12.939 and 13.886, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of December 31, 2018, respectively; and (c) $131.94, Visa’s class A common stock closing stock price as of December 31, 2018.

⁽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, 2018; (b)12.955 and 13.888, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2018, respectively; and (c) $150.09, Visa’s class A common stock closing stock price as of September 30, 2018.

Fair Value Measurements and Investments (Tables)

3 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and Liabilities Measured at Fair Value on a Recurring Basis



	Fair Value Measurements Using Inputs Considered as
	Level 1				Level 2
	December 31, 2018		September 30, 2018		December 31, 2018		September 30, 2018
	(in millions)
Assets
Cash equivalents and restricted cash:
Money market funds	$	7,063	$	6,252
U.S. government-sponsored debt securities					$	98	$	1,048
Investment securities:
Marketable equity securities	123		113
U.S. government-sponsored debt securities					5,234		5,008
U.S. Treasury securities	2,236		2,508
Other current and non-current assets:
Foreign exchange derivative instruments					113		78
Total	$	9,422	$	8,873	$	5,445	$	6,134
Liabilities
Accrued liabilities:
Foreign exchange derivative instruments					$	28	$	22
Total	$	—	$	—	$	28	$	22

Debt (Tables)

3 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of Debt

The Company had outstanding debt as follows:



	December 31, 2018			September 30, 2018			Effective Interest Rate
	(in millions, except percentages)
2.20% Senior Notes due December 2020	$	3,000		$	3,000		2.30	%
2.15% Senior Notes due September 2022	1,000			1,000			2.30	%
2.80% Senior Notes due December 2022	2,250			2,250			2.89	%
3.15% Senior Notes due December 2025	4,000			4,000			3.26	%
2.75% Senior Notes due September 2027	750			750			2.91	%
4.15% Senior Notes due December 2035	1,500			1,500			4.23	%
4.30% Senior Notes due December 2045	3,500			3,500			4.37	%
3.65% Senior Notes due September 2047	750			750			3.73	%
Total debt	16,750			16,750
Unamortized discounts and debt issuance costs	(117		)	(120		)
Total long-term debt	$	16,633		$	16,630

Settlement Guarantee Management (Tables)

3 Months Ended

Dec. 31, 2018

Settlement Guarantee Management [Abstract]

Schedule of Customer Collateral

The Company maintains and regularly reviews global settlement risk policies and procedures to manage settlement exposure, which may require clients to post collateral if certain credit standards are not met. At December 31, 2018 and September 30, 2018, the Company held collateral as follows:



	December 31, 2018		September 30, 2018
	(in millions)
Cash equivalents	$	1,720	$	1,708
Pledged securities at market value	307		192
Letters of credit	1,346		1,382
Guarantees	952		860
Total	$	4,325	$	4,142

Pension and Other Postretirement Benefits (Tables)

3 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Schedule of Pension and Other Postretirement Benefits



	Pension Benefits
	U.S. Plans						Non-U.S. Plans
	Three Months Ended December 31,						Three Months Ended December 31,
	2018			2017			2018			2017
	(in millions)
Service cost	$	—		$	—		$	1		$	1
Interest cost	8			8			3			3
Expected return on plan assets	(18		)	(17		)	(4		)	(5		)
Total net periodic benefit cost (income)	$	(10	)	$	(9	)	$	—		$	(1	)

Stockholders' Equity (Tables)

3 Months Ended

Dec. 31, 2018

Stockholders' Equity Note [Abstract]

Schedule of Stock by Class

As-converted class A common stock. The following table⁽¹⁾ presents number of shares of each series and class and the number of shares of class A common stock on an as-converted basis:



	December 31, 2018					September 30, 2018
	Shares Outstanding	Conversion Rate Into Class A Common Stock		As-converted Class A Common Stock⁽²⁾		Shares Outstanding	Conversion Rate Into Class A Common Stock		As-converted Class A Common Stock⁽²⁾
	(in millions, except conversion rates)
UK&I preferred stock	2	12.9390		32	⁽³⁾	2	12.9550		32	⁽³⁾
Europe preferred stock	3	13.8860		44	⁽³⁾	3	13.8880		44	⁽³⁾
Class A common stock⁽⁴⁾	1,754	—		1,754		1,768	—		1,768
Class B common stock	245	1.6298	⁽⁵⁾	400		245	1.6298	⁽⁵⁾	400
Class C common stock	12	4.0000		47		12	4.0000		47
Total				2,277					2,291


⁽¹⁾	Figures in the table may not recalculate exactly due to rounding.


⁽²⁾	As-converted class A common stock is calculated based on unrounded numbers.


⁽³⁾	The reduction in equivalent number of shares of class A common stock was less than one million shares during the three months ended December 31, 2018.


⁽⁴⁾	Class A common stock shares outstanding reflect repurchases settled on or before December 31, 2018 and September 30, 2018.


⁽⁵⁾	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 presents effective price per share and recovery of VE territory covered losses through conversion rate adjustments:



	Three Months Ended December 31, 2018				Twelve Months Ended September 30, 2018
	Preferred Stock
	UK&I		Europe		UK&I		Europe
	(in millions, except per share data)
Effective price per share⁽¹⁾	$	137.19	$	137.19	$	113.05	$	112.92
Recovery through conversion rate adjustment	$	5	$	1	$	35	$	21

⁽¹⁾

Effective price per share for the quarter 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 the fiscal year is calculated using the weighted-average effective prices of the respective adjustments made during the year.

Share Repurchase Program Disclosure

Common stock repurchases. The following table⁽¹⁾ presents share repurchases in the open market for the following periods:



	Three Months Ended December 31,
	2018		2017
	(in millions, except per share data)
Shares repurchased in the open market⁽²⁾	17		16
Average repurchase price per share⁽³⁾	$	138.11	$	110.24
Total cost	$	2,393	$	1,778

⁽¹⁾

Figures in the table may not recalculate exactly due to rounding. Shares repurchased in the open market reflect repurchases settled during the three months ended December 31, 2018 and 2017. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017, respectively, and exclude repurchases traded but not yet settled on or before December 31, 2018 and 2017, respectively.


⁽²⁾	All shares repurchased in the open market have been retired and constitute authorized but unissued shares.


⁽³⁾	Average repurchase price per share is calculated based on unrounded numbers.

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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Reference 14: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table⁽¹⁾ presents earnings per share for the three months ended December 31, 2018:



	Basic Earnings Per Share					Diluted Earnings Per Share
	(in millions, except per share data)
	Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)		Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)
Class A common stock	$	2,290	1,760	$	1.30	$	2,977	2,291	⁽³⁾	$	1.30
Class B common stock	521		245	$	2.12	$	520	245		$	2.12
Class C common stock	61		12	$	5.20	$	61	12		$	5.20
Participating securities⁽⁴⁾	105		Not presented	Not presented		$	105	Not presented		Not presented
Net income	$	2,977

The following table⁽¹⁾ presents earnings per share for the three months ended December 31, 2017:



	Basic Earnings Per Share					Diluted Earnings Per Share
	(in millions, except per share data)
	Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)		Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)
Class A common stock	$	1,945	1,811	$	1.07	$	2,522	2,353	⁽³⁾	$	1.07
Class B common stock	435		245	$	1.77	$	434	245		$	1.77
Class C common stock	54		13	$	4.30	$	54	13		$	4.29
Participating securities⁽⁴⁾	88		Not presented	Not presented		$	87	Not presented		Not presented
Net income	$	2,522


⁽¹⁾	Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.

⁽²⁾

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 400 million and 405 million for the three months ended December 31, 2018 and 2017, respectively. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 47 million and 51 million for the three months ended December 31, 2018 and 2017, respectively. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three months ended December 31, 2018 and 2017, and 44 million of as-converted Europe preferred stock for the three months ended December 31, 2018 and 2017.

⁽³⁾

Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes approximately 3 million and 5 million common stock equivalents for the three months ended December 31, 2018 and 2017, respectively, because their effect would be dilutive. The computation excludes 1 million and 2 million of common stock equivalents for the three months ended December 31, 2018, and 2017 respectively, because their effect would have been anti-dilutive.

⁽⁴⁾

Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company’s UK&I and Europe preferred stock, restricted stock 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.

Share-based Compensation (Tables)

3 Months Ended

Dec. 31, 2018

Share-based Compensation [Abstract]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan, or the EIP, during the three months ended December 31, 2018:



	Granted	Weighted-Average Grant Date Fair Value		Weighted-Average Exercise Price
Non-qualified stock options	1,109,645	$	25.89	$	134.76
Restricted stock units (“RSUs”)	2,503,888	$	134.76
Performance-based shares⁽¹⁾	540,538	$	153.42


⁽¹⁾	Represents the maximum number of performance-based shares which could be earned.

Legal Matters (Tables)

3 Months Ended

Dec. 31, 2018

Loss Contingencies [Line Items]

Schedule of Loss Contingencies by Contingency

The following table summarizes the activity related to accrued litigation:



	Three Months Ended December 31,
	2018			2017
	(in millions)
Balance at beginning of period	$	1,434		$	982
Provision for uncovered legal matters	7			—
Provision for covered legal matters	90			—
Payments for legal matters	(42		)	(152		)
Balance at end of period	$	1,489		$	830

U.S. Covered Litigation

Loss Contingencies [Line Items]

Schedule of Loss Contingencies by Contingency

The following table summarizes the activity related to U.S. covered litigation:



	Three Months Ended December 31,
	2018		2017
	(in millions)
Balance at beginning of period	$	1,428	$	978
Payments for U.S. covered litigation	—		(150		)
Balance at end of period	$	1,428	$	828

VE Territory Covered Litigation

Loss Contingencies [Line Items]

Schedule of Loss Contingencies by Contingency

The following table summarizes the activity related to VE territory covered litigation:



	Three Months Ended December 31,
	2018			2017
	(in millions)
Balance at beginning of period	$	—		$	1
Accrual for VE territory covered litigation	90			—
Payments for VE territory covered litigation	(35		)	(1		)
Balance at end of period	$	55		$	—

- Definition

Tabular disclosure of the loss contingencies that were reported in the period or disclosed as of the balance sheet date.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=82911808&loc=d3e14472-108349

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=82911808&loc=d3e14326-108349

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=82911808&loc=d3e14453-108349

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=82911808&loc=d3e14615-108349

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=115931803&loc=d3e12021-110248

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=82911808&loc=d3e14394-108349

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=82911808&loc=d3e14435-108349

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=82911808&loc=d3e14557-108349

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=115931803&loc=d3e12053-110248

+ Details

Summary of Significant Accounting Policies (Details)	Dec. 31, 2018 country
Accounting Policies [Abstract]
Number of countries in which entity operates (more than)	200

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Adoption of 606) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Oct. 01, 2018	Sep. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Current portion of client incentives	$ 547		$ 340
Client incentives	1,264		538
Client incentives	3,345		2,834
Accrued liabilities	1,487		1,160
Deferred tax liabilities	4,835		4,618
Other liabilities	2,703		2,666
Accumulated income	11,908		$ 11,318
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Current portion of client incentives		$ 539
Client incentives		1,152
Client incentives		3,075
Accrued liabilities		1,166
Deferred tax liabilities		4,726
Other liabilities		2,724
Accumulated income		11,718
Impact of the New Revenue Standard \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Current portion of client incentives	(198)	199
Client incentives	(661)	614
Client incentives	(260)	241
Accrued liabilities	(7)	6
Deferred tax liabilities	(109)	108
Other liabilities	(45)	58
Accumulated income	(415)	$ 400
Results Under Prior Revenue Standard
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Current portion of client incentives	349
Client incentives	603
Client incentives	3,085
Accrued liabilities	1,480
Deferred tax liabilities	4,726
Other liabilities	2,658
Accumulated income	$ 11,493

Revenues Adoption of New Revenue Standard (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Oct. 01, 2018	Sep. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	$ 5,506	$ 4,862
Operating Expenses
Marketing	276	223
Professional fees	91	92
General and administrative	276	236
Total operating expenses	1,789	1,535
Operating income	3,717	3,327
Income before income taxes	3,630	3,239
Income tax provision	653	717
Net income	2,977	$ 2,522
Assets
Current portion of client incentives	547			$ 340
Client incentives	1,264			538
Liabilities
Accounts payable	124			183
Client incentives	3,345			2,834
Other liabilities	2,703			2,666
Deferred tax liabilities	4,835			4,618
Accrued liabilities	1,487			1,160
Equity
Accumulated income	11,908			$ 11,318
Accounting Standards Update 2014-09
Assets
Current portion of client incentives			$ 539
Client incentives			1,152
Liabilities
Client incentives			3,075
Other liabilities			2,724
Deferred tax liabilities			4,726
Accrued liabilities			1,166
Equity
Accumulated income			11,718
Impact of the New Revenue Standard \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	(52)
Operating Expenses
Marketing	(30)
Professional fees	(3)
General and administrative	(3)
Total operating expenses	(36)
Operating income	(16)
Income before income taxes	(16)
Income tax provision	(1)
Net income	(15)
Assets
Current portion of client incentives	(198)		199
Client incentives	(661)		614
Liabilities
Accounts payable	(23)
Client incentives	(260)		241
Other liabilities	(45)		58
Deferred tax liabilities	(109)		108
Accrued liabilities	(7)		6
Equity
Accumulated income	(415)		$ 400
Results Under Prior Revenue Standard
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	5,454
Operating Expenses
Marketing	246
Professional fees	88
General and administrative	273
Total operating expenses	1,753
Operating income	3,701
Income before income taxes	3,614
Income tax provision	652
Net income	2,962
Assets
Current portion of client incentives	349
Client incentives	603
Liabilities
Accounts payable	101
Client incentives	3,085
Other liabilities	2,658
Deferred tax liabilities	4,726
Accrued liabilities	1,480
Equity
Accumulated income	$ 11,493

Revenues Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Net revenues	$ 5,506	$ 4,862
U.S.
Disaggregation of Revenue [Line Items]
Net revenues	2,508	2,265
International
Disaggregation of Revenue [Line Items]
Net revenues	2,998	2,597
Service revenues
Disaggregation of Revenue [Line Items]
Net revenues	2,342	2,146
Data processing revenues
Disaggregation of Revenue [Line Items]
Net revenues	2,470	2,147
International transaction revenues
Disaggregation of Revenue [Line Items]
Net revenues	1,851	1,666
Other revenues
Disaggregation of Revenue [Line Items]
Net revenues	299	229
Client incentives
Disaggregation of Revenue [Line Items]
Net revenues	$ (1,456)	$ (1,326)

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalent (Details) - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 8,289	$ 8,162	$ 8,138	$ 9,874
Escrow account	1,496	1,491	883	1,031
Customer collateral assets	1,330	1,324	1,155	1,106
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 11,115	$ 10,977	$ 10,176	$ 12,011

U.S. and Europe Retrospective Responsibility Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018	Sep. 30, 2017
Restricted Cash and Cash Equivalents Items [Line Items]
Provision for legal matters	$ 90	$ 0
Escrow account	1,496	883	$ 1,491	$ 1,031
Unsettled
Restricted Cash and Cash Equivalents Items [Line Items]
Provision for legal matters	$ 7	$ 0

U.S. and Europe Retrospective Responsibility Plans - Preferred Stock Rollforward (Details)
€ in Millions, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2018

EUR (€)

Dec. 31, 2018

USD ($)

Sep. 30, 2018

USD ($)

VE territory covered loss, maximum amount of loss to allow adjustment of conversion rate during six-month period | €

€ 20

Preferred Stock and Right to Recover for Covered Losses [Roll Forward]

$ 0

Preferred stock, beginning

^[1]

5,470

Right to recover for covered losses, beginning

0

Preferred stock, ending

^[1]

5,464

$ 5,470

^[1]

7

VE territory covered losses incurred

91

Right to recover for covered losses, ending

^[1]

92

7

$ (5)

$ (35)

Preferred Stock and Right to Recover for Covered Losses [Roll Forward]

12.9390

12.9550

Preferred stock, beginning

^[1]

$ 2,291

(5)

$ (35)

Preferred stock, ending

^[1]

2,286

2,291

$ (1)

$ (21)

Preferred Stock and Right to Recover for Covered Losses [Roll Forward]

13.8860

13.8880

Preferred stock, beginning

^[1]

$ 3,179

Right to Recover for Covered Losses

(1)

$ (21)

Preferred stock, ending

^[1]

3,178

$ 3,179

Preferred Stock and Right to Recover for Covered Losses [Roll Forward]

(6)

VE territory covered losses incurred

(6)

$ 91

[1]	Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.

U.S. and Europe Retrospective Responsibility Plans - Preferred Stock (Details)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2018

USD ($)

$ / shares

shares

Sep. 30, 2018

USD ($)

$ / shares

shares

As-converted value of preferred stock

$ 0

^[1]

10,019

^[2]

$ 11,403

^[3]

Book Value of Preferred stock

^[1]

5,464

5,470

Right to recover for covered losses

^[1]

(92)

(7)

Total recovery for covered losses available, as converted

^[1]

9,927

11,396

Total recovery for covered losses available, book value

^[1]

$ 5,372

$ 5,463

Share Price | $ / shares

$ 131.94

$ 150.09

As-converted value of preferred stock

$ (5)

$ (35)

^[1]

4,235

^[2]

4,823

^[3]

Book Value of Preferred stock

^[1]

$ 2,286

$ 2,291

Preferred stock, shares outstanding | shares

^[4]

2

12.9390

12.9550

As-converted value of preferred stock

$ (1)

$ (21)

^[1]

5,784

^[2]

6,580

^[3]

Book Value of Preferred stock

^[1]

$ 3,178

$ 3,179

Preferred stock, shares outstanding | shares

^[4]

3

13.8860

13.8880

Preferred Stock

Schedule of Common Stock as Converted [Line Items]

$ 6

[1]	Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
[2]	The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of December 31, 2018; (b)12.939 and 13.886, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of December 31, 2018, respectively; and (c) $131.94, Visa’s class A common stock closing stock price as of December 31, 2018.
[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, 2018; (b)12.955 and 13.888, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2018, respectively; and (c) $150.09, Visa’s class A common stock closing stock price as of September 30, 2018.
[4]	Figures in the table may not recalculate exactly due to rounding.

Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018
Assets
Investment securities, available-for-sale:	$ 7,500	$ 7,500
Liabilities
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	0
Fair Value, Measurements, Recurring \| Level 1
Assets
Total	9,422	8,873
Liabilities
Total	0	0
Fair Value, Measurements, Recurring \| Level 2
Assets
Total	5,445	6,134
Liabilities
Total	28	22
Cash equivalents and restricted cash: \| Fair Value, Measurements, Recurring \| Level 1 \| Money market funds
Assets
Cash equivalents and restricted cash:	7,063	6,252
Cash equivalents and restricted cash: \| Fair Value, Measurements, Recurring \| Level 2 \| U.S. government-sponsored debt securities
Assets
Cash equivalents and restricted cash:	98	1,048
Investment securities: \| Fair Value, Measurements, Recurring \| Level 1 \| Marketable equity securities
Assets
Marketable equity securities	123	113
Investment securities: \| Fair Value, Measurements, Recurring \| Level 1 \| U.S. Treasury securities
Assets
Investment securities, available-for-sale:	2,236	2,508
Investment securities: \| Fair Value, Measurements, Recurring \| Level 2 \| U.S. government-sponsored debt securities
Assets
Investment securities, available-for-sale:	5,234	5,008
Other current and non-current assets [Member] \| Fair Value, Measurements, Recurring \| Level 2 \| Foreign exchange derivative instruments
Assets
Derivative Asset	113	78
Foreign exchange derivative instruments \| Accrued liabilities: \| Fair Value, Measurements, Recurring \| Level 2
Liabilities
Accrued Liabilities, Fair Value Disclosure	$ 28	$ 22

Fair Value Measurements and Investments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 7,500	$ 7,500
Non-marketable equity investments	159	137
Equity Securities, FV-NI, Unrealized Gain (Loss)	(20)
Realized Gain (Loss) on Marketable Securities, Cost Method Investments, and Other Investments	0
Long-term Debt	$ 16,633	16,630
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities, stated maturities	1 year
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities, stated maturities	5 years
Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt	$ 16,600	16,600
Estimated Fair Value \| Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt, Fair Value	$ 16,700	$ 16,600

Debt - Debt (Details) - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	$ (117)	$ (120)
Long-term Debt	16,633	16,630
Senior Notes
Debt Instrument [Line Items]
Principal Amount, noncurrent	16,750	16,750
Long-term Debt	16,600	$ 16,600
Senior Notes \| 2017 Notes
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		1.20%
Senior Notes \| 2020 Notes
Debt Instrument [Line Items]
Principal Amount, noncurrent	$ 3,000	$ 3,000
Effective Interest Rate (percent)	2.30%
Debt Instrument, Interest Rate, Stated Percentage	2.20%
Senior Notes \| September 2022 Notes
Debt Instrument [Line Items]
Principal Amount, noncurrent	$ 1,000	1,000
Effective Interest Rate (percent)	2.30%
Debt Instrument, Interest Rate, Stated Percentage	2.15%
Senior Notes \| 2022 Notes
Debt Instrument [Line Items]
Principal Amount, noncurrent	$ 2,250	2,250
Effective Interest Rate (percent)	2.89%
Debt Instrument, Interest Rate, Stated Percentage	2.80%
Senior Notes \| 2025 Notes
Debt Instrument [Line Items]
Principal Amount, noncurrent	$ 4,000	4,000
Effective Interest Rate (percent)	3.26%
Debt Instrument, Interest Rate, Stated Percentage	3.15%
Senior Notes \| 2027 Notes
Debt Instrument [Line Items]
Principal Amount, noncurrent	$ 750	750
Effective Interest Rate (percent)	2.91%
Debt Instrument, Interest Rate, Stated Percentage	2.75%
Senior Notes \| 2035 Notes
Debt Instrument [Line Items]
Principal Amount, noncurrent	$ 1,500	1,500
Effective Interest Rate (percent)	4.23%
Debt Instrument, Interest Rate, Stated Percentage	4.15%
Senior Notes \| 2045 Notes
Debt Instrument [Line Items]
Principal Amount, noncurrent	$ 3,500	3,500
Effective Interest Rate (percent)	4.37%
Debt Instrument, Interest Rate, Stated Percentage	4.30%
Senior Notes \| 2047 Notes
Debt Instrument [Line Items]
Principal Amount, noncurrent	$ 750	$ 750
Effective Interest Rate (percent)	3.73%
Debt Instrument, Interest Rate, Stated Percentage	3.65%

Debt - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Debt - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Senior Notes
Debt Instrument [Line Items]
Interest expense	$ 137	$ 138

Settlement Guarantee Management Settlement Guarantee Management - Additional Information (Details) $ in Billions	3 Months Ended
	Dec. 31, 2018 USD ($)
Guarantor Obligations [Line Items]
Maximum Settlement Exposure	$ 88.2
Average Daily Settlement Exposure	$ 56.1

Collateral (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018
Settlement Guarantee Management [Abstract]
Cash Collateral Received - Off Balance Sheet	$ 390	$ 384
Cash equivalents	1,720	1,708
Pledged securities at market value	307	192
Letters of credit	1,346	1,382
Guarantees	952	860
Total	$ 4,325	$ 4,142

Components of Net Periodic Benefit Cost (Detail) - Pension Benefits - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
U.S.
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0
Interest cost	8	8
Expected return on plan assets	(18)	(17)
Total net periodic benefit cost (income)	(10)	(9)
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	1
Interest cost	3	3
Expected return on plan assets	(4)	(5)
Total net periodic benefit cost (income)	$ 0	$ (1)

Stockholders' Equity - Number of Shares of Class A Common Shares Outstanding on an As-Converted Basis (Detail)
shares in Millions

Dec. 31, 2018

shares

Sep. 30, 2018

shares

^[1],[2]

2,277

2,291

Schedule of Common Stock as Converted [Line Items]

Preferred stock, conversion rate into Class A Common Stock

^[2]

2

12.9390

12.9550

^[1],[2],[3]

32

Schedule of Common Stock as Converted [Line Items]

Preferred stock, conversion rate into Class A Common Stock

^[2]

3

13.8860

13.8880

^[1],[2],[3]

44

Schedule of Common Stock as Converted [Line Items]

^[2],[4]

1,754

1,768

^[1],[2],[4]

1,754

1,768

Schedule of Common Stock as Converted [Line Items]

Common stock, conversion rate

^[2]

245

^[5]

1.6298

^[1],[2]

400

Schedule of Common Stock as Converted [Line Items]

Common stock, conversion rate

^[2]

12

4.0000

^[1],[2]

47

[1]	As-converted class A common stock is calculated based on unrounded numbers.
[2]	Figures in the table may not recalculate exactly due to rounding.
[3]	The reduction in equivalent number of shares of class A common stock was less than one million shares during the three months ended December 31, 2018.
[4]	Class A common stock shares outstanding reflect repurchases settled on or before December 31, 2018 and September 30, 2018.
[5]	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.

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Dec. 31, 2018	Jan. 31, 2019	Jan. 29, 2019
Stockholders Equity Note [Line Items]
Stock Repurchase Remaining Authorized Amount	$ 1,800
Dividends, Cash	$ 572
Subsequent Event
Stockholders Equity Note [Line Items]
Stock Repurchase Program, Authorized Amount		$ 8,500
Subsequent Event \| Class A common stock
Stockholders Equity Note [Line Items]
Dividends Payable, Amount Per Share			$ 0.25

Stockholders' Equity Effect of VE Territory Covered Losses Recovery on the Company Repurchasing its Common Stock (Details) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

Conversion of Stock [Line Items]

$ 0

Effective price per share (in USD per share)

Conversion of Stock [Line Items]

^[1]

$ 137.19

$ 113.05

$ 5

$ 35

Effective price per share (in USD per share)

Conversion of Stock [Line Items]

^[1]

$ 137.19

$ 112.92

Equity, Class of Treasury Stock [Line Items]

$ 1

$ 21

[1]

Effective price per share for the quarter 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 the fiscal year is calculated using the weighted-average effective prices of the respective adjustments made during the year.

Stockholders' Equity - Share Repurchases in the Open Market (Detail) - Class A common stock - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Shares repurchased in the open market

^[1],[2]

17

16

Average repurchase price per share

^[2],[3]

$ 138.11

$ 110.24

Total cost

^[2]

$ 2,393

$ 1,778

[1]	All shares repurchased in the open market have been retired and constitute authorized but unissued shares.
[2]	Figures in the table may not recalculate exactly due to rounding. Shares repurchased in the open market reflect repurchases settled during the three months ended December 31, 2018 and 2017. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017, respectively, and exclude repurchases traded but not yet settled on or before December 31, 2018 and 2017, respectively.
[3]	Average repurchase price per share is calculated based on unrounded numbers.

Basic and Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]

Net income

$ 2,977

$ 2,522

Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]

Weighted- Average Shares Outstanding - Basic

^[1]

$ 2,290

$ 1,945

1,760

1,811

Earnings per Share - Basic

^[2]

$ 1.30

$ 1.07

Weighted- Average Shares Outstanding - Diluted

^[1]

$ 2,977

$ 2,522

^[3]

2,291

2,353

Earnings per Share - Diluted

^[2]

$ 1.30

$ 1.07

Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]

Weighted- Average Shares Outstanding - Basic

^[1]

$ 521

$ 435

245

Earnings per Share - Basic

^[2]

$ 2.12

$ 1.77

Weighted- Average Shares Outstanding - Diluted

^[1]

$ 520

$ 434

245

Earnings per Share - Diluted

^[2]

$ 2.12

$ 1.77

Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]

Weighted- Average Shares Outstanding - Basic

^[1]

$ 61

$ 54

12

13

Earnings per Share - Basic

^[2]

$ 5.20

$ 4.30

Weighted- Average Shares Outstanding - Diluted

^[1]

$ 61

$ 54

12

13

Earnings per Share - Diluted

^[2]

$ 5.20

$ 4.29

Participating securities

Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]

^[1],[4]

$ 105

$ 88