VISA INC., 10-Q filed on 4/26/2019
Quarterly Report
v3.19.1
Document and Entity Information - shares
 6 Months Ended
Mar. 31, 2019
Apr. 19, 2019
Entity Registrant Name VISA INC.  
Entity Central Index Key 0001403161  
Current Fiscal Year End Date --09-30  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Document Type 10-Q  
Document Period End Date Mar. 31, 2019  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Class A common stock    
Entity Common Stock, Shares Outstanding   1,738,987,989
Class B common stock    
Entity Common Stock, Shares Outstanding   245,513,385
Class C common stock    
Entity Common Stock, Shares Outstanding   11,565,095
v3.19.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Mar. 31, 2019
Sep. 30, 2018
Assets    
Cash and cash equivalents $ 7,648 $ 8,162
Restricted cash equivalents—U.S. litigation escrow (Note 3 and Note 4) 899 1,491
Investment securities (Note 5) 3,876 3,547
Settlement receivable 1,574 1,582
Accounts receivable 1,404 1,208
Customer collateral (Note 3 and Note 7) 1,735 1,324
Current portion of client incentives 589 340
Prepaid expenses and other current assets 765 562
Total current assets 18,490 18,216
Investment securities (Note 5) 3,506 4,082
Client incentives 1,664 538
Property, equipment and technology, net 2,456 2,472
Goodwill 15,088 15,194
Intangible assets, net 26,966 27,558
Other assets 1,695 1,165
Total assets 69,865 69,225
Liabilities    
Accounts payable 119 183
Settlement payable 2,081 2,168
Customer collateral (Note 7) 1,735 1,325
Accrued compensation and benefits 578 901
Client incentives 3,484 2,834
Accrued liabilities 1,207 1,160
Deferred purchase consideration 1,262 1,300
Accrued litigation (Note 13) 914 1,434
Total current liabilities 11,380 11,305
Long-term debt (Note 6) 16,630 16,630
Deferred tax liabilities 4,911 4,618
Other liabilities 2,669 2,666
Total liabilities 35,590 35,219
Equity    
Preferred stock [1] 5,464 5,470
Right to recover for covered losses (Note 4) [1] (163) (7)
Additional paid-in capital 16,547 16,678
Accumulated income 12,513 11,318
Accumulated other comprehensive income (loss), net:    
Investment securities 1 (17)
Defined benefit pension and other postretirement plans (67) (61)
Derivative instruments 96 60
Foreign currency translation adjustments (116) 565
Total accumulated other comprehensive income (loss), net (86) 547
Total equity 34,275 34,006
Total liabilities and equity 69,865 69,225
Series A Preferred Stock    
Equity    
Preferred stock 0 0
U.K.& I preferred stock    
Equity    
Preferred stock [1] 2,286 2,291
Europe preferred stock    
Equity    
Preferred stock [1] 3,178 3,179
Class A common stock    
Equity    
Common stock 0 0
Class B common stock    
Equity    
Common stock 0 0
Class C common stock    
Equity    
Common stock $ 0 $ 0
[1] Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
v3.19.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
shares in Millions
Mar. 31, 2019
Sep. 30, 2018
Preferred Stock    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 25 25
Preferred stock, shares issued 5 5
Preferred stock, shares outstanding 5 5
Series A Preferred Stock    
Preferred stock, shares issued 0 0
U.K.& I preferred stock    
Preferred stock, shares issued 2 2
Preferred stock, shares outstanding [1] 2 2
Europe preferred stock    
Preferred stock, shares issued 3 3
Preferred stock, shares outstanding [1] 3 3
Class A common stock    
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 2,001,622 2,001,622
Common stock, shares issued 1,741 1,768
Common stock, shares outstanding [1],[2] 1,741 1,768
Class B common stock    
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 622 622
Common stock, shares issued 245 245
Common stock, shares outstanding [1] 245 245
Class C common stock    
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 1,097 1,097
Common stock, shares issued 12 12
Common stock, shares outstanding [1] 12 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 March 31, 2019 and September 30, 2018.
v3.19.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Revenues        
Net revenues $ 5,494 $ 5,073 $ 11,000 $ 9,935
Operating Expenses        
Personnel 894 824 1,701 1,503
Marketing 241 261 517 484
Network and processing 171 169 344 329
Professional fees 101 108 192 200
Depreciation and amortization 160 153 319 298
General and administrative 264 222 540 458
Litigation provision (Note 13) 22 0 29 0
Total operating expenses 1,853 1,737 3,642 3,272
Operating income 3,641 3,336 7,358 6,663
Non-operating Income (Expense)        
Interest expense, net (140) (153) (285) (307)
Investment income and other 176 34 234 100
Total non-operating income (expense) 36 (119) (51) (207)
Income before income taxes 3,677 3,217 7,307 6,456
Income tax provision (Note 12) 700 612 1,353 1,329
Net income $ 2,977 $ 2,605 $ 5,954 $ 5,127
Class A common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) [1] $ 1.31 $ 1.12 $ 2.61 $ 2.19
Basic weighted-average shares outstanding (in shares) 1,748 1,798 1,754 1,805
Diluted earnings per share (in dollars per share) [1] $ 1.31 $ 1.11 $ 2.61 $ 2.19
Diluted weighted-average shares outstanding (in shares) [2] 2,279 2,337 2,285 2,345
Class B common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) [1] $ 2.13 $ 1.84 $ 4.25 $ 3.61
Basic weighted-average shares outstanding (in shares) 245 245 245 245
Diluted earnings per share (in dollars per share) [1] $ 2.13 $ 1.84 $ 4.25 $ 3.60
Diluted weighted-average shares outstanding (in shares) 245 245 245 245
Class C common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) [1] $ 5.23 $ 4.46 $ 10.44 $ 8.76
Basic weighted-average shares outstanding (in shares) 12 12 12 13
Diluted earnings per share (in dollars per share) [1] $ 5.23 $ 4.46 $ 10.42 $ 8.74
Diluted weighted-average shares outstanding (in shares) 12 12 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 common stock equivalents for the three and six months ended March 31, 2019 and 4 million common stock equivalents for the three and six months ended March 31, 2018, because their effect would have been dilutive. The computation excludes 1 million of common stock equivalents for the three and six months ended March 31, 2019, and 2 million of common stock equivalents for the three and six months ended March 31, 2018, because their effect would have been anti-dilutive.
v3.19.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Statement of Comprehensive Income [Abstract]        
Net income $ 2,977 $ 2,605 $ 5,954 $ 5,127
Investment securities:        
Net unrealized gain (loss) 7 41 15 50
Income tax effect (2) (9) (4) (12)
Reclassification adjustment for net (gain) loss realized in net income 0 0 0 (28)
Income tax effect 0 0 0 10
Defined benefit pension and other postretirement plans:        
Net unrealized actuarial gain (loss) and prior service credit (cost) 0 (2) (7) (2)
Income tax effect 0 1 1 1
Derivative instruments:        
Net unrealized gain (loss) 59 (41) 97 (42)
Income tax effect (13) 2 (23) (3)
Reclassification adjustment for net (gain) loss realized in net income (22) 24 (47) 35
Income tax effect 4 (3) 9 (5)
Foreign currency translation adjustments (394) 512 (681) 846
Other comprehensive income (loss), net of tax (361) 525 (640) 850
Comprehensive income $ 2,616 $ 3,130 $ 5,314 $ 5,977
v3.19.1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)
shares in Millions, $ in Millions
Total
U.K.& I preferred stock
Europe preferred stock
Class A common stock
 [3]
Preferred Stock
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, 2017           2 3 1,818 245 13        
Beginning balance at Sep. 30, 2017 $ 32,760       $ 5,526           $ (52) $ 16,900 $ 9,508 $ 878
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Net income 5,127                          
Other comprehensive income (loss), net of tax 850                         850
Comprehensive income 5,977                          
VE territory covered losses incurred (Note 4) (4)                   (4)      
Recovery through conversion rate adjustment (Note 4 and Note 9) 0       (50)           50      
Conversion of class C common stock upon sales into public market (in shares)               2   (1)        
Vesting of restricted stock and performance-based shares (in shares)               2            
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited [1]               0            
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition 153                     153    
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 (88)                     (88)    
Cash proceeds from issuance of common stock under employee equity plans (in shares)               2            
Cash proceeds from issuance of common stock under employee equity plans 103                     103    
Cash dividends declared and paid, at a quarterly amount per Class A share (948)                       (948)  
Repurchase of class A common stock (Note 9) (in shares)       (33) [2]       (33)            
Repurchase of class A common stock (Note 9) (3,850)     $ (3,850)               (355) (3,495)  
Ending balance (in shares) at Mar. 31, 2018           2 3 1,790 245 12        
Ending balance at Mar. 31, 2018 34,103       5,476           (6) 16,713 10,192 1,728
Beginning balance (in shares) at Sep. 30, 2017           2 3 1,818 245 13        
Beginning balance at Sep. 30, 2017 32,760       5,526           (52) 16,900 9,508 878
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Recovery through conversion rate adjustment (Note 4 and Note 9)   $ 35 $ 21                      
Ending balance (in shares) at Sep. 30, 2018           2 3 1,768 245 12        
Ending balance at Sep. 30, 2018 34,006       5,470           (7) 16,678 11,318 547
Beginning balance (in shares) at Dec. 31, 2017           2 3 1,805 245 12        
Beginning balance at Dec. 31, 2017 33,401       5,476           (5) 16,761 9,966 1,203
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Net income 2,605                          
Other comprehensive income (loss), net of tax 525                         525
Comprehensive income 3,130                          
VE territory covered losses incurred (Note 4) (1)                   (1)      
Conversion of class C common stock upon sales into public market (in shares)               1   0 [4]        
Vesting of restricted stock and performance-based shares (in shares) [4]               0            
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited [4]               0            
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition 85                     85    
Restricted stock and performance-based shares settled in cash for taxes (in shares) [4]               0            
Restricted stock and performance-based shares settled in cash for taxes 0                     0    
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 50                     50    
Cash dividends declared and paid, at a quarterly amount per Class A share (490)                       (490)  
Repurchase of class A common stock (Note 9) (in shares)       (17) [2]       (17)            
Repurchase of class A common stock (Note 9) (2,072)     $ (2,072)               (183) (1,889)  
Ending balance (in shares) at Mar. 31, 2018           2 3 1,790 245 12        
Ending balance at Mar. 31, 2018 34,103       5,476           (6) 16,713 10,192 1,728
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 5,954                          
Other comprehensive income (loss), net of tax (640)                         (640)
Comprehensive income 5,314                          
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification 392                       385 7
VE territory covered losses incurred (Note 4) (162) 0 0               (162)      
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 [5]        
Vesting of restricted stock and performance-based shares (in shares)               3            
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition 211                     211    
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 (103)                     (103)    
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 89                     89    
Cash dividends declared and paid, at a quarterly amount per Class A share (1,141)                       (1,141)  
Repurchase of class A common stock (Note 9) (in shares)       (31) [2]       (31)            
Repurchase of class A common stock (Note 9) (4,331)     $ (4,331)               (328) (4,003)  
Ending balance (in shares) at Mar. 31, 2019           2 3 1,741 245 12        
Ending balance at Mar. 31, 2019 34,275       5,464           (163) 16,547 12,513 (86)
Beginning balance (in shares) at Dec. 31, 2018           2 3 1,754 245 12        
Beginning balance at Dec. 31, 2018 34,095       5,464           (92) 16,540 11,908 275
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Net income 2,977                          
Other comprehensive income (loss), net of tax (361)                         (361)
Comprehensive income 2,616                          
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification (8)                       (8) 0
VE territory covered losses incurred (Note 4) (71)                   (71)      
Conversion of class C common stock upon sales into public market (in shares)               1   0 [6]        
Vesting of restricted stock and performance-based shares (in shares) [6]               0            
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition 111                     111    
Restricted stock and performance-based shares settled in cash for taxes (in shares) [6]               0            
Restricted stock and performance-based shares settled in cash for taxes (2)                     (2)    
Cash proceeds from issuance of common stock under employee equity plans (in shares) [6]               0            
Cash proceeds from issuance of common stock under employee equity plans 41                     41    
Cash dividends declared and paid, at a quarterly amount per Class A share (569)                       (569)  
Repurchase of class A common stock (Note 9) (in shares)       (14) [2]       (14)            
Repurchase of class A common stock (Note 9) (1,938)     $ (1,938)               (143) (1,795)  
Ending balance (in shares) at Mar. 31, 2019           2 3 1,741 245 12        
Ending balance at Mar. 31, 2019 $ 34,275       $ 5,464           $ (163) $ 16,547 $ 12,513 $ (86)
[1] Decrease 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 and six months ended March 31, 2019 and 2018. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017 for six months, respectively, and December 31, 2018 and 2017 for three months, respectively. Also, these amounts exclude repurchases traded but not yet settled on or before March 31, 2019 and 2018, respectively.
[4] Increase or decrease is less than one million shares.
[5] Decrease is less than one million shares.
[6] Increase or decrease is less than one million shares.
v3.19.1
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parentheticals) - $ / shares
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2019
Consolidated Statement of Changes in Equity (Parenthetical) [Abstract]        
Cash dividends declared and paid, quarterly, per Class A share $ 0.25 $ 0.210 $ 0.195 $ 0.25
v3.19.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Operating Activities    
Net income $ 5,954 $ 5,127
Adjustments to reconcile net income to net cash provided by operating activities:    
Client incentives (Note 2) 2,934 2,615
Share-based compensation (Note 11) 211 153
Depreciation and amortization of property, equipment, technology and intangible assets 319 298
Deferred income taxes 256 (945)
Right to recover for covered losses recorded in equity (Note 4) (162) (4)
Other (106) (10)
Change in operating assets and liabilities:    
Settlement receivable (23) (1,039)
Accounts receivable (203) (113)
Client incentives (3,142) (2,177)
Other assets (245) 41
Accounts payable (48) (26)
Settlement payable (38) 986
Accrued and other liabilities 170 975
Accrued litigation (Note 13) (519) (152)
Net cash provided by operating activities 5,358 5,729
Investing Activities    
Purchases of property, equipment and technology (313) (354)
Investment securities:    
Purchases 1,806 2,342
Proceeds from maturities and sales 2,038 1,771
Acquisitions, net of cash acquired 0 (196)
Purchases of / contributions to other investments (236) (16)
Proceeds / distributions from other investments 10 0
Other investing activities (89) 0
Net cash used in investing activities (396) (1,137)
Financing Activities    
Repurchase of class A common stock (Note 9) (4,331) (3,850)
Repayments of long-term debt 0 (1,750)
Dividends paid (Note 9) (1,141) (948)
Cash proceeds from issuance of common stock under employee equity plans 89 103
Restricted stock and performance-based shares settled in cash for taxes (103) (88)
Net cash used in financing activities (5,486) (6,533)
Effect of exchange rate changes on cash and cash equivalents (171) 206
Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents (695) (1,735)
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) 10,282 10,276
Supplemental Disclosure    
Income taxes paid, net of refunds 1,381 1,197
Interest payments on debt (Note 6) 269 276
Accruals related to purchases of property, equipment and technology $ 51 $ 21
v3.19.1
Summary of Significant Accounting Policies
 6 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 1—Summary of Significant Accounting Policies
Organization. Visa Inc. (“Visa” or the “Company”) is a global payments technology company that enables fast, secure and reliable electronic payments across more than 200 countries and territories. Visa and its wholly-owned consolidated subsidiaries, including Visa U.S.A. Inc. (“Visa U.S.A.”), Visa International Service Association (“Visa International”), Visa Worldwide Pte. Limited, Visa Europe Limited (“Visa Europe”), Visa Canada Corporation (“Visa Canada”), Visa Technology & Operations LLC and CyberSource Corporation, operate one of the world’s largest 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 and six months ended March 31, 2019.
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 and other aspects of the new lease standard. 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 2017, the FASB issued ASU 2017-12, which improves the financial reporting of hedging instruments to better portray the economic results of an entity’s risk management activities in its financial statements. Visa early adopted the standard effective January 1, 2019, which 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.
v3.19.1
Revenues
 6 Months Ended
Mar. 31, 2019
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 and six months ended March 31, 2019 and the consolidated balance sheet as of March 31, 2019:
 
For the Three Months Ended
March 31, 2019
 
For the Six Months Ended
March 31, 2019
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
(in millions)
Net revenues
$
5,494

 
$
(39
)
 
$
5,455

 
$
11,000

 
$
(91
)
 
$
10,909

 
 
 
 
 
 
 
 
 
 
 
 
Operating Expenses 
 
 
 
 
 
 
 
 
 
 
 
Marketing
241

 
(39
)
 
202

 
517

 
(69
)
 
448

Professional fees
101

 
(3
)
 
98

 
192

 
(6
)
 
186

General and administrative
264

 
(7
)
 
257

 
540

 
(10
)
 
530

Total operating expenses
1,853

 
(49
)
 
1,804

 
3,642

 
(85
)
 
3,557

Operating income
3,641

 
10

 
3,651

 
7,358

 
(6
)
 
7,352

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
3,677

 
10

 
3,687

 
7,307

 
(6
)
 
7,301

Income tax provision
700

 
2

 
702

 
1,353

 
1

 
1,354

Net income
2,977

 
8

 
2,985

 
5,954

 
(7
)
 
5,947

 
March 31, 2019
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
(in millions)
Assets
 
 
 
 
 
Current portion of client incentives
$
589

 
$
(262
)
 
$
327

Client incentives
1,664

 
(725
)
 
939

Liabilities
 
 
 
 
 
Accounts payable
119

 
13

 
132

Client incentives
3,484

 
(401
)
 
3,083

Accrued liabilities
1,207

 
(8
)
 
1,199

Deferred tax liabilities
4,911

 
(105
)
 
4,806

Other liabilities
2,669

 
(79
)
 
2,590

Equity
 
 
 
 
 
Accumulated income
12,513

 
(407
)
 
12,106


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 and six months ended March 31, 2019 and 2018:
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service revenues
$
2,417

 
$
2,253

 
$
4,759

 
$
4,399

Data processing revenues
2,432

 
2,127

 
4,902

 
4,274

International transaction revenues
1,796

 
1,752

 
3,647

 
3,418

Other revenues
327

 
230

 
626

 
459

Client incentives
(1,478
)
 
(1,289
)
 
(2,934
)
 
(2,615
)
Net revenues
$
5,494

 
$
5,073

 
$
11,000

 
$
9,935

 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
U.S.
$
2,479

 
$
2,297

 
$
4,987

 
$
4,562

International
3,015

 
2,776

 
6,013

 
5,373

Net revenues
$
5,494

 
$
5,073

 
$
11,000

 
$
9,935


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.
v3.19.1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalent
 6 Months Ended
Mar. 31, 2019
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]  
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Note 3—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
The Company’s cash and cash equivalents include cash and certain highly liquid investments with original maturities of 90 days or less from the date of purchase. Cash equivalents are primarily recorded at cost, which approximates fair value due to their generally short maturities. The Company defines restricted cash and restricted cash equivalents as cash and cash equivalents that cannot be withdrawn or used for general operating activities.
The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:
 
March 31,
 
September 30,
 
2019
 
2018
 
2018
 
2017
 
(in millions)
Cash and cash equivalents
$
7,648

 
$
8,142

 
$
8,162

 
$
9,874

Restricted cash and restricted cash equivalents:
 
 
 
 
 
 
 
U.S. litigation escrow
899

 
884

 
1,491

 
1,031

Customer collateral
1,735

 
1,250

 
1,324

 
1,106

Cash, cash equivalents, restricted cash and restricted cash equivalents
$
10,282

 
$
10,276

 
$
10,977

 
$
12,011
v3.19.1
U.S. and Europe Retrospective Responsibility Plans
 6 Months Ended
Mar. 31, 2019
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 $899 million at March 31, 2019 and $1.5 billion at September 30, 2018. The Company paid $600 million from the litigation escrow account during the three months ended March 31, 2019. 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 six months ended March 31, 2019. 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 six months ended March 31, 2019, 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 March 31, 2019.
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 six months ended March 31, 2019. 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
 
 
(in millions)
Balance as of September 30, 2018
$
2,291

 
$
3,179

 
$
(7
)
VE territory covered losses incurred
—

 
—

 
(162
)
Recovery through conversion rate adjustment
(5
)
 
(1
)
 
6

Balance as of March 31, 2019
$
2,286

 
$
3,178

 
$
(163
)

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 March 31, 2019 and September 30, 2018:
 
March 31, 2019
 
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
$
5,013

 
$
2,286

 
$
4,823

 
$
2,291

Europe preferred stock
6,847

 
3,178

 
6,580

 
3,179

Total
11,860

 
5,464

 
11,403

 
5,470

Less: right to recover for covered losses
(163
)
 
(163
)
 
(7
)
 
(7
)
Total recovery for covered losses available
$
11,697

 
$
5,301

 
$
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 March 31, 2019; (b) 12.939 and 13.886, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of March 31, 2019, respectively; and (c) $156.19, Visa’s class A common stock closing stock price as of March 31, 2019.
(3) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 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.
v3.19.1
Fair Value Measurements and Investments
 6 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Investments
Note 5—Fair Value Measurements and Investments
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
Fair Value Measurements
Using Inputs Considered as
 
Level 1
 
Level 2
 
March 31,
2019
 
September 30,
2018
 
March 31,
2019
 
September 30,
2018
 
(in millions)
Assets
 
 
 
 
 
 
 
Cash equivalents and restricted cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
6,089

 
$
6,252

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
$
200

 
$
1,048

Investment securities:
 
 
 
 
 
 
 
Marketable equity securities
157

 
113

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
5,482

 
5,008

U.S. Treasury securities
1,743

 
2,508

 
 
 
 
Other current and non-current assets:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
166

 
78

Total
$
7,989

 
$
8,873

 
$
5,848

 
$
6,134

Liabilities
 
 
 
 
 
 
 
Accrued and other liabilities:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
$
44

 
$
22

Total
$
—

 
$
—

 
$
44

 
$
22


There were no transfers between Level 1 and Level 2 assets during the six months ended March 31, 2019.
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. 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 six months ended March 31, 2019.
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 $7.2 billion and $7.5 billion of these investment securities as of March 31, 2019 and September 30, 2018, respectively. All of the Company’s long-term available-for-sale investment securities are due within one to five years.
Derivative instruments. During the three months ended March 31, 2019, the Company entered into interest rate and cross-currency swap agreements on a portion of the Company’s outstanding 3.15% Senior Notes due December 2025. The Company designated the interest rate swap as a fair value hedge and the cross-currency swap as a net investment hedge. Gains and losses related to changes in fair value hedges are recognized in non-operating income (expense) along with a corresponding loss or gain related to the change in value of the underlying hedged item in the same line in the consolidated statement of operations. The effective portions of net investment hedges are recorded in other comprehensive income. Amounts excluded from the effectiveness testing of net investment hedges are recognized in non-operating income (expense). Cash flows associated with derivatives designated as a fair value hedge may be included in operating, investing or financing activities on the consolidated statement of cash flows, depending on the classification of the items being hedged. Cash flows associated with financial instruments designated as net investment hedges are classified as an investing activity. There were no swap agreements outstanding as of September 30, 2018.
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 $438 million and $137 million at March 31, 2019 and September 30, 2018, respectively, and are classified in other assets on the consolidated balance sheets. During the three and six months ended March 31, 2019, $66 million of upward adjustments and no downward adjustments were made to the carrying value of non-marketable equity securities. During the six months ended March 31, 2019 and 2018, 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, 2019, and concluded that there was no impairment. No recent events or changes in circumstances indicate that impairment existed at March 31, 2019.
Gains and Losses on Marketable and Non-marketable Equity Securities
The Company recognized net realized gains of $15 million for both the three and six months ended March 31, 2019 on its equity securities sold during the periods. The Company recognized net unrealized gains of $79 million and $59 million for the three and six months ended March 31, 2019, respectively, on equity securities held as of the end of the periods.
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 $17.3 billion, respectively, as of March 31, 2019. 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 March 31, 2019, 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 March 31, 2019 approximates their carrying value due to their generally short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 in the fair value hierarchy.
v3.19.1
Debt
 6 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Debt
Note 6—Debt
The Company had outstanding debt as follows:
 
March 31,
2019
 
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 senior notes
16,750

 
16,750

 
 
Unamortized discounts and debt issuance costs
(114
)
 
(120
)
 
 
Hedge accounting fair value adjustments
(6
)
 
—

 
 
Total long-term debt
$
16,630

 
$
16,630

 
 

The Company recognized interest expense for its senior notes of $119 million and $137 million for the three months ended March 31, 2019 and 2018, respectively, and $245 million and $275 million for the six months ended March 31, 2019 and 2018, respectively. Interest expense for the three and six months ended March 31, 2019 includes adjustments related to the Company’s hedging program. Effective interest rates disclosed in the table above do not reflect hedge accounting adjustments.
v3.19.1
Settlement Guarantee Management
 6 Months Ended
Mar. 31, 2019
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 $92.0 billion and the average daily settlement exposure was $55.3 billion during the six months ended March 31, 2019.
The Company maintains and regularly reviews global settlement risk policies and procedures to manage settlement exposure, which may require clients to post collateral if certain credit standards are not met. At March 31, 2019 and September 30, 2018, the Company held collateral as follows:

March 31,
2019
 
September 30,
2018
 
(in millions)
Cash equivalents
$
1,735

 
$
1,708

Pledged securities at market value
307

 
192

Letters of credit
1,337

 
1,382

Guarantees
574

 
860

Total
$
3,953

 
$
4,142
v3.19.1
Pension and Other Postretirement Benefits
 6 Months Ended
Mar. 31, 2019
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
March 31,
 
Three Months Ended
March 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service cost
$
—

 
$
—

 
$
1

 
$
1

Interest cost
8

 
8

 
4

 
3

Expected return on plan assets
(18
)
 
(18
)
 
(5
)
 
(5
)
Total net periodic benefit cost (income)
$
(10
)
 
$
(10
)
 
$
—

 
$
(1
)

 
Pension Benefits
 
U.S. Plans
 
Non-U.S. Plans
 
Six Months Ended
March 31,
 
Six Months Ended
March 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service cost
$
—

 
$
—

 
$
2

 
$
2

Interest cost
16

 
16

 
7

 
6

Expected return on plan assets
(36
)
 
(35
)
 
(9
)
 
(10
)
Total net periodic benefit cost (income)
$
(20
)
 
$
(19
)
 
$
—

 
$
(2
)
v3.19.1
Stockholders' Equity
 6 Months Ended
Mar. 31, 2019
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:
 
March 31, 2019
 
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)
1,741

 
—

 
1,741

 
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

 
46

 
12

 
4.0000

 
47

 
Total
 
 
 
 
2,263

 
 
 
 
 
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 six months ended March 31, 2019.
(4) 
Class A common stock shares outstanding reflect repurchases settled on or before March 31, 2019 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:
 
Six Months Ended
March 31, 2019
 
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
March 31,
 
Six Months Ended
March 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions, except per share data)
Shares repurchased in the open market(2)
14

 
17

 
31

 
33

Average repurchase price per share(3)
$
144.94

 
$
120.26

 
$
141.08

 
$
115.41

Total cost
$
1,938

 
$
2,072

 
$
4,331

 
$
3,850

(1)  
Figures in the table may not recalculate exactly due to rounding. Shares repurchased in the open market reflect repurchases settled during the three and six months ended March 31, 2019 and 2018. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017 for six months, respectively, and December 31, 2018 and 2017 for three months, respectively. Also, these amounts exclude repurchases traded but not yet settled on or before March 31, 2019 and 2018, 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.
In January 2019, the Company’s board of directors authorized an additional $8.5 billion share repurchase program. As of March 31, 2019, the Company’s January 2019 share repurchase program had remaining authorized funds of $8.4 billion for share repurchase. All share repurchase programs authorized prior to January 2019 have been completed.
Dividends. On April 16, 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 June 4, 2019, to all holders of record as of May 17, 2019. The Company declared and paid $569 million and $490 million during the three months ended March 31, 2019 and 2018, respectively, and $1.1 billion and $948 million during the six months ended March 31, 2019 and 2018, respectively, in dividends to holders of the Company’s common and preferred stocks.
v3.19.1
Earnings Per Share
 6 Months Ended
Mar. 31, 2019
Earnings Per Share [Abstract]  
Earnings Per Share
Note 10—Earnings Per Share
Basic earnings per share is computed by dividing net income available to each class of shares by the weighted-average number of shares of common stock outstanding and participating securities during the period. Net income is allocated to each class of common stock and participating securities based on its proportional ownership on an as-converted basis. The weighted-average number of shares outstanding of each class of common stock reflects changes in ownership over the periods presented. See Note 9—Stockholders’ Equity.
Diluted earnings per share is computed by dividing net income available by the weighted-average number of shares of common stock outstanding, participating securities and, if dilutive, potential class A common stock equivalent shares outstanding during the period. Dilutive class A common stock equivalents may consist of: (1) shares of class A common stock issuable upon the conversion of UK&I and Europe preferred stock and class B and C common stock based on the conversion rates in effect through the period, and (2) incremental shares of class A common stock calculated by applying the treasury stock method to the assumed exercise of employee stock options, the assumed purchase of stock under the Company’s Employee Stock Purchase Plan and the assumed vesting of unearned performance shares.
The following table(1) presents earnings per share for the three months ended March 31, 2019:
 
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
$
2,287

 
1,748

 
$
1.31

 
 
$
2,977

 
2,279

(3) 
$
1.31

Class B common stock
523

 
245

 
$
2.13

 
 
$
523

 
245

 
$
2.13

Class C common stock
61

 
12

 
$
5.23

 
 
$
61

 
12

 
$
5.23

Participating securities(4)
106

 
Not presented

 
Not presented

 
 
$
106

 
Not presented

 
Not presented

Net income
$
2,977

 
 
 
 
 
 
 
 
 
 
 

The following table(1) presents earnings per share for the six months ended March 31, 2019:
 
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
$
4,577

 
1,754

 
$
2.61

 
 
$
5,954

 
2,285

(3) 
$
2.61

Class B common stock
1,044

 
245

 
$
4.25

 
 
$
1,043

 
245

 
$
4.25

Class C common stock
122

 
12

 
$
10.44

 
 
$
122

 
12

 
$
10.42

Participating securities(4)
211

 
Not presented

 
Not presented

 
 
$
211

 
Not presented

 
Not presented

Net income
$
5,954

 
 
 
 
 
 
 
 
 
 
 
The following table(1) presents earnings per share for the three months ended March 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
$
2,007

 
1,798

 
$
1.12

 
 
$
2,605

 
2,337

(3) 
$
1.11

Class B common stock
452

 
245

 
$
1.84

 
 
$
451

 
245

 
$
1.84

Class C common stock
55

 
12

 
$
4.46

 
 
$
55

 
12

 
$
4.46

Participating securities(4)
91

 
Not presented

 
Not presented

 
 
$
91

 
Not presented

 
Not presented

Net income
$
2,605

 
 
 
 
 
 
 
 
 
 
 
The following table(1) presents earnings per share for the six months ended March 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
$
3,952

 
1,805

 
$
2.19

 
 
$
5,127

 
2,345

(3) 
$
2.19

Class B common stock
886

 
245

 
$
3.61

 
 
$
885

 
245

 
$
3.60

Class C common stock
110

 
13

 
$
8.76

 
 
$
109

 
13

 
$
8.74

Participating securities(4)
179

 
Not presented

 
Not presented

 
 
$
178

 
Not presented

 
Not presented

Net income
$
5,127

 
 
 
 
 
 
 
 
 
 
 

(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 for the three and six months ended March 31, 2019, and 405 million for the three and six months ended March 31, 2018. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 47 million for the three and six months ended March 31, 2019, and 49 million and 50 million for the three and six months ended March 31, 2018, respectively. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three and six months ended March 31, 2019 and 2018, and 44 million of as-converted Europe preferred stock for the three and six months ended March 31, 2019 and 2018.
(3) 
Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes approximately 3 million common stock equivalents for the three and six months ended March 31, 2019 and 4 million common stock equivalents for the three and six months ended March 31, 2018, because their effect would have been dilutive. The computation excludes 1 million of common stock equivalents for the three and six months ended March 31, 2019, and 2 million of common stock equivalents for the three and six months ended March 31, 2018, because their effect would have been anti-dilutive.
(4) 
Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company’s UK&I and Europe preferred stock, restricted stock 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.
v3.19.1
Share-based Compensation
 6 Months Ended
Mar. 31, 2019
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 six months ended March 31, 2019:
 
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”)
2,616,550

 
$
135.19

 
 
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 $106 million and $201 million for the three and six months ended March 31, 2019, respectively, and $82 million and $146 million for the three and six months ended March 31, 2018, respectively, net of estimated forfeitures, which are adjusted as appropriate.
v3.19.1
Income Taxes
 6 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Note 12—Income Taxes
The effective income tax rate was 19% for the three and six months ended March 31, 2019, and 19% and 21% for the three and six months ended March 31, 2018, respectively. The effective tax rate for the six months ended March 31, 2019 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 six months ended March 31, 2019 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 the following items recorded during the six months ended March 31, 2018:
▪
an $80 million benefit due to a non-recurring audit settlement during the three months ended March 31, 2018;
▪
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 adopted the accounting policy of accounting for taxes on GILTI in the period that it is subject to such tax.
During the three and six months ended March 31, 2019, the Company’s gross unrecognized tax benefits increased by $108 million and $146 million, respectively. The Company's unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate increased by $44 million and $83 million, respectively. The change in unrecognized tax benefits is primarily related to various tax positions across several jurisdictions. During the three and six months ended March 31, 2019 and 2018, there were no significant changes in interest and penalties related to uncertain tax positions.
The Company’s tax filings are subject to examination by the U.S. federal, state and foreign taxing authorities. The timing and outcome of the final resolutions of the various ongoing income tax examinations are highly uncertain. It is not reasonably possible to estimate the increase or decrease in unrecognized tax benefits within the next twelve months.
v3.19.1
Legal Matters
 6 Months Ended
Mar. 31, 2019
Legal Matters [Abstract]  
Legal Matters
Note 13—Legal Matters
The Company is party to various legal and regulatory proceedings. Some of these proceedings involve complex claims that are subject to substantial uncertainties and unascertainable damages. Accordingly, except as disclosed, the Company has not established reserves or ranges of possible loss related to these proceedings, as at this time in the proceedings, the matters do not relate to a probable loss and/or the amount or range of losses are not reasonably estimable. Although the Company believes that it has strong defenses for the litigation and regulatory proceedings described below, it could, in the future, incur judgments or fines or enter into settlements of claims that could have a material adverse effect on the Company’s financial position, results of operations or cash flows. From time to time, the Company may engage in settlement discussions or mediations with respect to one or more of its outstanding litigation matters, either on its own behalf or collectively with other parties.
The litigation accrual is an estimate and is based on management’s understanding of its litigation profile, the specifics of each case, advice of counsel to the extent appropriate and management’s best estimate of incurred loss as of the balance sheet date.
The following table summarizes the activity related to accrued litigation:
 
Six Months Ended
March 31,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
1,434

 
$
982

Provision for uncovered legal matters
35

 
—

Provision for covered legal matters
159

 
1

Payments for legal matters
(714
)
 
(153
)
Balance at end of period
$
914

 
$
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:
 
Six Months Ended
March 31,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
1,428

 
$
978

Payments for U.S. covered litigation
(600
)
 
(150
)
Balance at end of period
$
828

 
$
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:
 
Six Months Ended
March 31,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
—

 
$
1

Accrual for VE territory covered litigation
159

 
1

Payments for VE territory covered litigation
(98
)
 
(2
)
Balance at end of period
$
61

 
$
—

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 100 Merchants, leaving more than 350 Merchants with outstanding claims. In addition, over 30 additional Merchants have threatened to commence similar proceedings. Standstill agreements have been entered into with respect to some of those threatened Merchant claims, several of which have been settled.
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 calendar year 2019.
Canadian Merchant Litigation
Wal-Mart Canada and/or Home Depot of Canada Inc. have filed notices of appeal of the British Columbia, Ontario, Saskatchewan, Quebec and Alberta decisions approving the settlements.
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, but was subsequently reinstated and is currently pending.
Kroger
The litigation was stayed until February 2, 2019. Visa and Kroger have reached an agreement in principle to resolve this lawsuit.
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. Preliminary approval was granted on January 24, 2019, which extended the stay in the Nuts for Candy case pending final approval of the Amended Settlement Agreement.
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.
v3.19.1
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Consolidation and basis of presentation
Consolidation and basis of presentation. The accompanying unaudited consolidated financial statements include the accounts of Visa and its consolidated entities and are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company consolidates its majority-owned and controlled entities, including variable interest entities (“VIEs”) for which the Company is the primary beneficiary. The Company’s investments in VIEs have not been material to its 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 and six months ended March 31, 2019.
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 and other aspects of the new lease standard. 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 2017, the FASB issued ASU 2017-12, which improves the financial reporting of hedging instruments to better portray the economic results of an entity’s risk management activities in its financial statements. Visa early adopted the standard effective January 1, 2019, which 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.
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).
Derivatives Policy
Gains and losses related to changes in fair value hedges are recognized in non-operating income (expense) along with a corresponding loss or gain related to the change in value of the underlying hedged item in the same line in the consolidated statement of operations. The effective portions of net investment hedges are recorded in other comprehensive income. Amounts excluded from the effectiveness testing of net investment hedges are recognized in non-operating income (expense). Cash flows associated with derivatives designated as a fair value hedge may be included in operating, investing or financing activities on the consolidated statement of cash flows, depending on the classification of the items being hedged. Cash flows associated with financial instruments designated as net investment hedges are classified as an investing activity.
Investment Policy
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).
v3.19.1
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Mar. 31, 2019
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
v3.19.1
Revenues (Tables)
 6 Months Ended
Mar. 31, 2019
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 and six months ended March 31, 2019 and the consolidated balance sheet as of March 31, 2019:
 
For the Three Months Ended
March 31, 2019
 
For the Six Months Ended
March 31, 2019
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
(in millions)
Net revenues
$
5,494

 
$
(39
)
 
$
5,455

 
$
11,000

 
$
(91
)
 
$
10,909

 
 
 
 
 
 
 
 
 
 
 
 
Operating Expenses 
 
 
 
 
 
 
 
 
 
 
 
Marketing
241

 
(39
)
 
202

 
517

 
(69
)
 
448

Professional fees
101

 
(3
)
 
98

 
192

 
(6
)
 
186

General and administrative
264

 
(7
)
 
257

 
540

 
(10
)
 
530

Total operating expenses
1,853

 
(49
)
 
1,804

 
3,642

 
(85
)
 
3,557

Operating income
3,641

 
10

 
3,651

 
7,358

 
(6
)
 
7,352

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
3,677

 
10

 
3,687

 
7,307

 
(6
)
 
7,301

Income tax provision
700

 
2

 
702

 
1,353

 
1

 
1,354

Net income
2,977

 
8

 
2,985

 
5,954

 
(7
)
 
5,947

 
March 31, 2019
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
(in millions)
Assets
 
 
 
 
 
Current portion of client incentives
$
589

 
$
(262
)
 
$
327

Client incentives
1,664

 
(725
)
 
939

Liabilities
 
 
 
 
 
Accounts payable
119

 
13

 
132

Client incentives
3,484

 
(401
)
 
3,083

Accrued liabilities
1,207

 
(8
)
 
1,199

Deferred tax liabilities
4,911

 
(105
)
 
4,806

Other liabilities
2,669

 
(79
)
 
2,590

Equity
 
 
 
 
 
Accumulated income
12,513

 
(407
)
 
12,106
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 and six months ended March 31, 2019 and 2018:
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service revenues
$
2,417

 
$
2,253

 
$
4,759

 
$
4,399

Data processing revenues
2,432

 
2,127

 
4,902

 
4,274

International transaction revenues
1,796

 
1,752

 
3,647

 
3,418

Other revenues
327

 
230

 
626

 
459

Client incentives
(1,478
)
 
(1,289
)
 
(2,934
)
 
(2,615
)
Net revenues
$
5,494

 
$
5,073

 
$
11,000

 
$
9,935

 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
U.S.
$
2,479

 
$
2,297

 
$
4,987

 
$
4,562

International
3,015

 
2,776

 
6,013

 
5,373

Net revenues
$
5,494

 
$
5,073

 
$
11,000

 
$
9,935
v3.19.1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalent (Tables)
 6 Months Ended
Mar. 31, 2019
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]  
Schedule of Cash and Cash Equivalents
The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:
 
March 31,
 
September 30,
 
2019
 
2018
 
2018
 
2017
 
(in millions)
Cash and cash equivalents
$
7,648

 
$
8,142

 
$
8,162

 
$
9,874

Restricted cash and restricted cash equivalents:
 
 
 
 
 
 
 
U.S. litigation escrow
899

 
884

 
1,491

 
1,031

Customer collateral
1,735

 
1,250

 
1,324

 
1,106

Cash, cash equivalents, restricted cash and restricted cash equivalents
$
10,282

 
$
10,276

 
$
10,977

 
$
12,011
v3.19.1
U.S. and Europe Retrospective Responsibility Plans (Tables)
 6 Months Ended
Mar. 31, 2019
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 six months ended March 31, 2019. 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
 
 
(in millions)
Balance as of September 30, 2018
$
2,291

 
$
3,179

 
$
(7
)
VE territory covered losses incurred
—

 
—

 
(162
)
Recovery through conversion rate adjustment
(5
)
 
(1
)
 
6

Balance as of March 31, 2019
$
2,286

 
$
3,178

 
$
(163
)
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 March 31, 2019 and September 30, 2018:
 
March 31, 2019
 
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
$
5,013

 
$
2,286

 
$
4,823

 
$
2,291

Europe preferred stock
6,847

 
3,178

 
6,580

 
3,179

Total
11,860

 
5,464

 
11,403

 
5,470

Less: right to recover for covered losses
(163
)
 
(163
)
 
(7
)
 
(7
)
Total recovery for covered losses available
$
11,697

 
$
5,301

 
$
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 March 31, 2019; (b) 12.939 and 13.886, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of March 31, 2019, respectively; and (c) $156.19, Visa’s class A common stock closing stock price as of March 31, 2019.
(3) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 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.
v3.19.1
Fair Value Measurements and Investments (Tables)
 6 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
Fair Value Measurements
Using Inputs Considered as
 
Level 1
 
Level 2
 
March 31,
2019
 
September 30,
2018
 
March 31,
2019
 
September 30,
2018
 
(in millions)
Assets
 
 
 
 
 
 
 
Cash equivalents and restricted cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
6,089

 
$
6,252

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
$
200

 
$
1,048

Investment securities:
 
 
 
 
 
 
 
Marketable equity securities
157

 
113

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
5,482

 
5,008

U.S. Treasury securities
1,743

 
2,508

 
 
 
 
Other current and non-current assets:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
166

 
78

Total
$
7,989

 
$
8,873

 
$
5,848

 
$
6,134

Liabilities
 
 
 
 
 
 
 
Accrued and other liabilities:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
$
44

 
$
22

Total
$
—

 
$
—

 
$
44

 
$
22
v3.19.1
Debt (Tables)
 6 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Schedule of Debt
The Company had outstanding debt as follows:
 
March 31,
2019
 
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 senior notes
16,750

 
16,750

 
 
Unamortized discounts and debt issuance costs
(114
)
 
(120
)
 
 
Hedge accounting fair value adjustments
(6
)
 
—

 
 
Total long-term debt
$
16,630

 
$
16,630

 
 
v3.19.1
Settlement Guarantee Management (Tables)
 6 Months Ended
Mar. 31, 2019
Settlement Guarantee Management [Abstract]  
Schedule of Customer Collateral
The Company maintains and regularly reviews global settlement risk policies and procedures to manage settlement exposure, which may require clients to post collateral if certain credit standards are not met. At March 31, 2019 and September 30, 2018, the Company held collateral as follows:

March 31,
2019
 
September 30,
2018
 
(in millions)
Cash equivalents
$
1,735

 
$
1,708

Pledged securities at market value
307

 
192

Letters of credit
1,337

 
1,382

Guarantees
574

 
860

Total
$
3,953

 
$
4,142
v3.19.1
Pension and Other Postretirement Benefits (Tables)
 6 Months Ended
Mar. 31, 2019
Retirement Benefits [Abstract]  
Schedule of Pension and Other Postretirement Benefits
 
Pension Benefits
 
U.S. Plans
 
Non-U.S. Plans
 
Three Months Ended
March 31,
 
Three Months Ended
March 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service cost
$
—

 
$
—

 
$
1

 
$
1

Interest cost
8

 
8

 
4

 
3

Expected return on plan assets
(18
)
 
(18
)
 
(5
)
 
(5
)
Total net periodic benefit cost (income)
$
(10
)
 
$
(10
)
 
$
—

 
$
(1
)

 
Pension Benefits
 
U.S. Plans
 
Non-U.S. Plans
 
Six Months Ended
March 31,
 
Six Months Ended
March 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service cost
$
—

 
$
—

 
$
2

 
$
2

Interest cost
16

 
16

 
7

 
6

Expected return on plan assets
(36
)
 
(35
)
 
(9
)
 
(10
)
Total net periodic benefit cost (income)
$
(20
)
 
$
(19
)
 
$
—

 
$
(2
)
v3.19.1
Stockholders' Equity (Tables)
 6 Months Ended
Mar. 31, 2019
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:
 
March 31, 2019
 
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)
1,741

 
—

 
1,741

 
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

 
46

 
12

 
4.0000

 
47

 
Total
 
 
 
 
2,263

 
 
 
 
 
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 six months ended March 31, 2019.
(4) 
Class A common stock shares outstanding reflect repurchases settled on or before March 31, 2019 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:
 
Six Months Ended
March 31, 2019
 
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
March 31,
 
Six Months Ended
March 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions, except per share data)
Shares repurchased in the open market(2)
14

 
17

 
31

 
33

Average repurchase price per share(3)
$
144.94

 
$
120.26

 
$
141.08

 
$
115.41

Total cost
$
1,938

 
$
2,072

 
$
4,331

 
$
3,850

(1)  
Figures in the table may not recalculate exactly due to rounding. Shares repurchased in the open market reflect repurchases settled during the three and six months ended March 31, 2019 and 2018. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017 for six months, respectively, and December 31, 2018 and 2017 for three months, respectively. Also, these amounts exclude repurchases traded but not yet settled on or before March 31, 2019 and 2018, 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.
v3.19.1
Earnings Per Share (Tables)
 6 Months Ended
Mar. 31, 2019
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 March 31, 2019:
 
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
$
2,287

 
1,748

 
$
1.31

 
 
$
2,977

 
2,279

(3) 
$
1.31

Class B common stock
523

 
245

 
$
2.13

 
 
$
523

 
245

 
$
2.13

Class C common stock
61

 
12

 
$
5.23

 
 
$
61

 
12

 
$
5.23

Participating securities(4)
106

 
Not presented

 
Not presented

 
 
$
106

 
Not presented

 
Not presented

Net income
$
2,977

 
 
 
 
 
 
 
 
 
 
 

The following table(1) presents earnings per share for the six months ended March 31, 2019:
 
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
$
4,577

 
1,754

 
$
2.61

 
 
$
5,954

 
2,285

(3) 
$
2.61

Class B common stock
1,044

 
245

 
$
4.25

 
 
$
1,043

 
245

 
$
4.25

Class C common stock
122

 
12

 
$
10.44

 
 
$
122

 
12

 
$
10.42

Participating securities(4)
211

 
Not presented

 
Not presented

 
 
$
211

 
Not presented

 
Not presented

Net income
$
5,954

 
 
 
 
 
 
 
 
 
 
 
The following table(1) presents earnings per share for the three months ended March 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
$
2,007

 
1,798

 
$
1.12

 
 
$
2,605

 
2,337

(3) 
$
1.11

Class B common stock
452

 
245

 
$
1.84

 
 
$
451

 
245

 
$
1.84

Class C common stock
55

 
12

 
$
4.46

 
 
$
55

 
12

 
$
4.46

Participating securities(4)
91

 
Not presented

 
Not presented

 
 
$
91

 
Not presented

 
Not presented

Net income
$
2,605

 
 
 
 
 
 
 
 
 
 
 
The following table(1) presents earnings per share for the six months ended March 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
$
3,952

 
1,805

 
$
2.19

 
 
$
5,127

 
2,345

(3) 
$
2.19

Class B common stock
886

 
245

 
$
3.61

 
 
$
885

 
245

 
$
3.60

Class C common stock
110

 
13

 
$
8.76

 
 
$
109

 
13

 
$
8.74

Participating securities(4)
179

 
Not presented

 
Not presented

 
 
$
178

 
Not presented

 
Not presented

Net income
$
5,127

 
 
 
 
 
 
 
 
 
 
 

(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 for the three and six months ended March 31, 2019, and 405 million for the three and six months ended March 31, 2018. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 47 million for the three and six months ended March 31, 2019, and 49 million and 50 million for the three and six months ended March 31, 2018, respectively. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three and six months ended March 31, 2019 and 2018, and 44 million of as-converted Europe preferred stock for the three and six months ended March 31, 2019 and 2018.
(3) 
Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes approximately 3 million common stock equivalents for the three and six months ended March 31, 2019 and 4 million common stock equivalents for the three and six months ended March 31, 2018, because their effect would have been dilutive. The computation excludes 1 million of common stock equivalents for the three and six months ended March 31, 2019, and 2 million of common stock equivalents for the three and six months ended March 31, 2018, because their effect would have been anti-dilutive.
(4) 
Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company’s UK&I and Europe preferred stock, restricted stock 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.
v3.19.1
Share-based Compensation (Tables)
 6 Months Ended
Mar. 31, 2019
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 six months ended March 31, 2019:
 
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”)
2,616,550

 
$
135.19

 
 
Performance-based shares(1)
540,538

 
$
153.42

 
 
(1)  
Represents the maximum number of performance-based shares which could be earned.
v3.19.1
Legal Matters (Tables)
 6 Months Ended
Mar. 31, 2019
Loss Contingencies [Line Items]  
Schedule of Loss Contingencies by Contingency
The following table summarizes the activity related to accrued litigation:
 
Six Months Ended
March 31,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
1,434

 
$
982

Provision for uncovered legal matters
35

 
—

Provision for covered legal matters
159

 
1

Payments for legal matters
(714
)
 
(153
)
Balance at end of period
$
914

 
$
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:
 
Six Months Ended
March 31,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
1,428

 
$
978

Payments for U.S. covered litigation
(600
)
 
(150
)
Balance at end of period
$
828

 
$
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:
 
Six Months Ended
March 31,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
—

 
$
1

Accrual for VE territory covered litigation
159

 
1

Payments for VE territory covered litigation
(98
)
 
(2
)
Balance at end of period
$
61

 
$
—
v3.19.1
Summary of Significant Accounting Policies (Details)
Mar. 31, 2019
country
Accounting Policies [Abstract]  
Number of countries in which entity operates (more than) 200
v3.19.1
Summary of Significant Accounting Policies (Adoption of 606) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Oct. 01, 2018
Sep. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Current portion of client incentives $ 589   $ 340
Client incentives 1,664   538
Client incentives 3,484   2,834
Accrued liabilities 1,207   1,160
Deferred tax liabilities 4,911   4,618
Other liabilities 2,669   2,666
Accumulated income 12,513   $ 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 (262) 199  
Client incentives (725) 614  
Client incentives (401) 241  
Accrued liabilities (8) 6  
Deferred tax liabilities (105) 108  
Other liabilities (79) 58  
Accumulated income (407) $ 400  
Results Under Prior Revenue Standard      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Current portion of client incentives 327    
Client incentives 939    
Client incentives 3,083    
Accrued liabilities 1,199    
Deferred tax liabilities 4,806    
Other liabilities 2,590    
Accumulated income $ 12,106    
v3.19.1
Revenues Adoption of New Revenue Standard (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Oct. 01, 2018
Sep. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Net revenues $ 5,494 $ 5,073 $ 11,000 $ 9,935    
Operating Expenses            
Marketing 241 261 517 484    
Professional fees 101 108 192 200    
General and administrative 264 222 540 458    
Total operating expenses 1,853 1,737 3,642 3,272    
Operating income 3,641 3,336 7,358 6,663    
Income before income taxes 3,677 3,217 7,307 6,456    
Income tax provision 700 612 1,353 1,329    
Net income 2,977 $ 2,605 5,954 $ 5,127    
Assets            
Current portion of client incentives 589   589     $ 340
Client incentives 1,664   1,664     538
Liabilities            
Accounts payable 119   119     183
Client incentives 3,484   3,484     2,834
Accrued liabilities 1,207   1,207     1,160
Deferred tax liabilities 4,911   4,911     4,618
Other liabilities 2,669   2,669     2,666
Equity            
Accumulated income 12,513   12,513     $ 11,318
Accounting Standards Update 2014-09            
Assets            
Current portion of client incentives         $ 539  
Client incentives         1,152  
Liabilities            
Client incentives         3,075  
Accrued liabilities         1,166  
Deferred tax liabilities         4,726  
Other liabilities         2,724  
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 (39)   (91)      
Operating Expenses            
Marketing (39)   (69)      
Professional fees (3)   (6)      
General and administrative (7)   (10)      
Total operating expenses (49)   (85)      
Operating income 10   (6)      
Income before income taxes 10   (6)      
Income tax provision 2   1      
Net income 8   (7)      
Assets            
Current portion of client incentives (262)   (262)   199  
Client incentives (725)   (725)   614  
Liabilities            
Accounts payable 13   13      
Client incentives (401)   (401)   241  
Accrued liabilities (8)   (8)   6  
Deferred tax liabilities (105)   (105)   108  
Other liabilities (79)   (79)   58  
Equity            
Accumulated income (407)   (407)   $ 400  
Results Under Prior Revenue Standard            
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Net revenues 5,455   10,909      
Operating Expenses            
Marketing 202   448      
Professional fees 98   186      
General and administrative 257   530      
Total operating expenses 1,804   3,557      
Operating income 3,651   7,352      
Income before income taxes 3,687   7,301      
Income tax provision 702   1,354      
Net income 2,985   5,947      
Assets            
Current portion of client incentives 327   327      
Client incentives 939   939      
Liabilities            
Accounts payable 132   132      
Client incentives 3,083   3,083      
Accrued liabilities 1,199   1,199      
Deferred tax liabilities 4,806   4,806      
Other liabilities 2,590   2,590      
Equity            
Accumulated income $ 12,106   $ 12,106      
v3.19.1
Revenues Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Disaggregation of Revenue [Line Items]        
Net revenues $ 5,494 $ 5,073 $ 11,000 $ 9,935
U.S.        
Disaggregation of Revenue [Line Items]        
Net revenues 2,479 2,297 4,987 4,562
International        
Disaggregation of Revenue [Line Items]        
Net revenues 3,015 2,776 6,013 5,373
Service revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 2,417 2,253 4,759 4,399
Data processing revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 2,432 2,127 4,902 4,274
International transaction revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 1,796 1,752 3,647 3,418
Other revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 327 230 626 459
Client incentives        
Disaggregation of Revenue [Line Items]        
Net revenues $ (1,478) $ (1,289) $ (2,934) $ (2,615)
v3.19.1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalent (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Sep. 30, 2018
Mar. 31, 2018
Sep. 30, 2017
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]        
Cash and cash equivalents $ 7,648 $ 8,162 $ 8,142 $ 9,874
U.S. litigation escrow 899 1,491 884 1,031
Customer collateral 1,735 1,324 1,250 1,106
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents $ 10,282 $ 10,977 $ 10,276 $ 12,011
v3.19.1
U.S. and Europe Retrospective Responsibility Plans (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2019
Sep. 30, 2018
Mar. 31, 2018
Sep. 30, 2017
Restricted Cash and Cash Equivalents Items [Line Items]        
U.S. litigation escrow $ 899 $ 1,491 $ 884 $ 1,031
Deposits To Litigation Escrow Account $ 600      
v3.19.1
U.S. and Europe Retrospective Responsibility Plans - Preferred Stock Rollforward (Details)
€ in Millions, $ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Mar. 31, 2019
EUR (€)
Mar. 31, 2019
USD ($)
Mar. 31, 2018
USD ($)
Mar. 31, 2019
USD ($)
Mar. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Class of Stock [Line Items]            
VE territory covered loss, maximum amount of loss to allow adjustment of conversion rate during six-month period | € € 20          
Recovery through conversion rate adjustment       $ 0 $ 0  
Preferred Stock and Right to Recover for Covered Losses [Roll Forward]            
Preferred stock, beginning [1]       5,470    
Recovery through conversion rate adjustment       0 0  
Preferred stock, ending [1]   $ 5,464   5,464   $ 5,470
Right to recover for covered losses, beginning [1]       7    
VE territory covered losses incurred   71 $ 1 162 4  
Right to recover for covered losses, ending [1]   $ 163   163   7
U.K.& I preferred stock            
Class of Stock [Line Items]            
Recovery through conversion rate adjustment       $ (5)   $ (35)
Preferred stock, conversion ratio 12.9390 12.9390   12.9390   12.9550
Preferred Stock and Right to Recover for Covered Losses [Roll Forward]            
Preferred stock, beginning [1]       $ 2,291    
Recovery through conversion rate adjustment       (5)   $ (35)
Preferred stock, ending [1]   $ 2,286   2,286   2,291
VE territory covered losses incurred       0    
Europe preferred stock            
Class of Stock [Line Items]            
Recovery through conversion rate adjustment       $ (1)   $ (21)
Preferred stock, conversion ratio 13.8860 13.8860   13.8860   13.8880
Preferred Stock and Right to Recover for Covered Losses [Roll Forward]            
Preferred stock, beginning [1]       $ 3,179    
Recovery through conversion rate adjustment       (1)   $ (21)
Preferred stock, ending [1]   $ 3,178   3,178   $ 3,179
VE territory covered losses incurred       0    
Right to Recover for Covered Losses            
Class of Stock [Line Items]            
Recovery through conversion rate adjustment       (6) (50)  
Preferred Stock and Right to Recover for Covered Losses [Roll Forward]            
Recovery through conversion rate adjustment       (6) (50)  
VE territory covered losses incurred   $ 71 $ 1 $ 162 $ 4  
[1] Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
v3.19.1
U.S. and Europe Retrospective Responsibility Plans - Preferred Stock (Details)
$ / shares in Units, shares in Millions, $ in Millions
 6 Months Ended 12 Months Ended
Mar. 31, 2019
USD ($)
$ / shares
shares
Mar. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
$ / shares
shares
Class of Stock [Line Items]      
Recovery Through Conversion Rate Adjustment $ 0 $ 0  
As-converted value of preferred stock [1] 11,860 [2]   $ 11,403 [3]
Book Value of Preferred stock [1] 5,464   5,470
Right to recover for covered losses [1] (163)   (7)
Total recovery for covered losses available, as converted [1] 11,697   11,396
Total recovery for covered losses available, book value [1] $ 5,301   $ 5,463
Share Price | $ / shares $ 156.19   $ 150.09
U.K.& I preferred stock      
Class of Stock [Line Items]      
Recovery Through Conversion Rate Adjustment $ (5)   $ (35)
As-converted value of preferred stock [1] 5,013 [2]   4,823 [3]
Book Value of Preferred stock [1] $ 2,286   $ 2,291
Preferred stock, shares outstanding | shares [4] 2   2
Preferred stock, conversion ratio 12.9390   12.9550
Europe preferred stock      
Class of Stock [Line Items]      
Recovery Through Conversion Rate Adjustment $ (1)   $ (21)
As-converted value of preferred stock [1] 6,847 [2]   6,580 [3]
Book Value of Preferred stock [1] $ 3,178   $ 3,179
Preferred stock, shares outstanding | shares [4] 3   3
Preferred stock, conversion ratio 13.8860   13.8880
Preferred Stock      
Class of Stock [Line Items]      
Recovery Through Conversion Rate Adjustment $ 6 $ 50  
[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 March 31, 2019; (b) 12.939 and 13.886, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of March 31, 2019, respectively; and (c) $156.19, Visa’s class A common stock closing stock price as of March 31, 2019.
[3] The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 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) $150.09, Visa’s class A common stock closing stock price as of September 30, 2018.
[4] Figures in the table may not recalculate exactly due to rounding.
v3.19.1
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Sep. 30, 2018
Assets    
Investment securities, available-for-sale: $ 7,200 $ 7,500
Liabilities    
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount 0  
Fair Value, Measurements, Recurring | Level 1    
Assets    
Total 7,989 8,873
Liabilities    
Total 0 0
Fair Value, Measurements, Recurring | Level 2    
Assets    
Total 5,848 6,134
Liabilities    
Total 44 22
Cash equivalents and restricted cash equivalents: | Fair Value, Measurements, Recurring | Level 1 | Money market funds    
Assets    
Cash equivalents and restricted cash equivalents: 6,089 6,252
Cash equivalents and restricted cash equivalents: | Fair Value, Measurements, Recurring | Level 2 | U.S. government-sponsored debt securities    
Assets    
Cash equivalents and restricted cash equivalents: 200 1,048
Investment securities: | Fair Value, Measurements, Recurring | Level 1 | Marketable equity securities    
Assets    
Marketable equity securities 157 113
Investment securities: | Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities    
Assets    
Investment securities, available-for-sale: 1,743 2,508
Investment securities: | Fair Value, Measurements, Recurring | Level 2 | U.S. government-sponsored debt securities    
Assets    
Investment securities, available-for-sale: 5,482 5,008
Other current and non-current assets: | Fair Value, Measurements, Recurring | Level 2 | Derivative instruments    
Assets    
Derivative Asset 166 78
Derivative instruments | Accrued and other liabilities: | Fair Value, Measurements, Recurring | Level 2    
Liabilities    
Accrued Liabilities, Fair Value Disclosure $ 44 $ 22
v3.19.1
Fair Value Measurements and Investments - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2019
Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Available-for-sale Securities $ 7,200,000,000 $ 7,200,000,000 $ 7,500,000,000
Non-marketable equity investments 438,000,000 438,000,000 137,000,000
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount 66,000,000 66,000,000  
Equity Securities without Readily Determinable Fair Value, Downward Price Adjustment, Annual Amount 0 0  
Realized Gain (Loss) on Marketable Securities, Cost Method Investments, and Other Investments 15,000,000 15,000,000  
Equity Securities, FV-NI, Unrealized Gain (Loss) 79,000,000 59,000,000  
Long-term Debt 16,630,000,000 $ 16,630,000,000 16,630,000,000
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 16,600,000,000 $ 16,600,000,000 16,600,000,000
Estimated Fair Value | Senior Notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term Debt, Fair Value $ 17,300,000,000 $ 17,300,000,000 $ 16,600,000,000
v3.19.1
Debt - Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Sep. 30, 2018
Debt Instrument [Line Items]    
Long-term Debt $ 16,630 $ 16,630
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net (114) (120)
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) (6) 0
Senior Notes    
Debt Instrument [Line Items]    
Principal Amount, noncurrent 16,750 16,750
Long-term Debt 16,600 16,600
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 | December 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%  
v3.19.1
Debt - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Senior Notes        
Debt Instrument [Line Items]        
Interest expense $ 119 $ 137 $ 245 $ 275
v3.19.1
Settlement Guarantee Management Settlement Guarantee Management - Additional Information (Details)
$ in Billions
 6 Months Ended
Mar. 31, 2019
USD ($)
Settlement Guarantee Management [Abstract]  
Maximum Settlement Exposure $ 92.0
Average Daily Settlement Exposure $ 55.3
v3.19.1
Collateral (Detail) - USD ($)
$ in Millions
Mar. 31, 2019
Sep. 30, 2018
Settlement Guarantee Management [Abstract]    
Cash equivalents $ 1,735 $ 1,708
Pledged securities at market value 307 192
Letters of credit 1,337 1,382
Guarantees 574 860
Total $ 3,953 $ 4,142
v3.19.1
Components of Net Periodic Benefit Cost (Detail) - Pension Benefits - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
U.S.        
Defined Benefit Plan Disclosure [Line Items]        
Service cost $ 0 $ 0 $ 0 $ 0
Interest cost 8 8 16 16
Expected return on plan assets (18) (18) (36) (35)
Total net periodic benefit cost (income) (10) (10) (20) (19)
Non-U.S. Plans        
Defined Benefit Plan Disclosure [Line Items]        
Service cost 1 1 2 2
Interest cost 4 3 7 6
Expected return on plan assets (5) (5) (9) (10)
Total net periodic benefit cost (income) $ 0 $ (1) $ 0 $ (2)
v3.19.1
Stockholders' Equity - Number of Shares of Class A Common Shares Outstanding on an As-Converted Basis (Detail)
shares in Millions
Mar. 31, 2019
shares
Sep. 30, 2018
shares
Schedule of Common Stock as Converted [Line Items]    
As-converted Class A Common Stock [1],[2] 2,263 2,291
U.K.& I preferred stock    
Schedule of Common Stock as Converted [Line Items]    
Preferred stock, shares outstanding [2] 2 2
Preferred stock, conversion rate into Class A Common Stock 12.9390 12.9550
As-converted Class A Common Stock [1],[2],[3] 32 32
Europe preferred stock    
Schedule of Common Stock as Converted [Line Items]    
Preferred stock, shares outstanding [2] 3 3
Preferred stock, conversion rate into Class A Common Stock 13.8860 13.8880
As-converted Class A Common Stock [1],[2],[3] 44 44
Class A common stock    
Schedule of Common Stock as Converted [Line Items]    
Common stock, shares outstanding [2],[4] 1,741 1,768
As-converted Class A Common Stock [1],[2],[4] 1,741 1,768
Class B common stock    
Schedule of Common Stock as Converted [Line Items]    
Common stock, shares outstanding [2] 245 245
Common stock, conversion rate [5] 1.6298 1.6298
As-converted Class A Common Stock [1],[2] 400 400
Class C common stock    
Schedule of Common Stock as Converted [Line Items]    
Common stock, shares outstanding [2] 12 12
Common stock, conversion rate 4.0000 4.0000
As-converted Class A Common Stock [1],[2] 46 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 six months ended March 31, 2019.
[4] Class A common stock shares outstanding reflect repurchases settled on or before March 31, 2019 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.
v3.19.1
Stockholders' Equity - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Apr. 16, 2019
Jan. 31, 2019
Stockholders Equity Note [Line Items]            
Stock Repurchase Program, Authorized Amount           $ 8,500
Stock Repurchase Remaining Authorized Amount $ 8,400   $ 8,400      
Cash dividends declared and paid, at a quarterly amount per Class A share $ 569 $ 490 $ 1,141 $ 948    
Subsequent Event | Class A common stock            
Stockholders Equity Note [Line Items]            
Dividends Payable, Amount Per Share         $ 0.25  
v3.19.1
Stockholders' Equity Effect of VE Territory Covered Losses Through Coversion Rate Adjustments (Details) - USD ($)
$ / shares in Units, $ in Millions
 6 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Sep. 30, 2018
Conversion of Stock [Line Items]      
Recovery Through Conversion Rate Adjustment $ 0 $ 0  
U.K.& I preferred stock      
Conversion of Stock [Line Items]      
Effective price per share (in USD per share) [1] $ 137.19   $ 113.05
Recovery Through Conversion Rate Adjustment $ 5   $ 35
Europe preferred stock      
Conversion of Stock [Line Items]      
Effective price per share (in USD per share) [1] $ 137.19   $ 112.92
Recovery Through Conversion Rate Adjustment $ 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.
v3.19.1
Stockholders' Equity - Share Repurchases in the Open Market (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Equity, Class of Treasury Stock [Line Items]        
Total cost $ 1,938 $ 2,072 $ 4,331 $ 3,850
Class A common stock        
Equity, Class of Treasury Stock [Line Items]        
Shares repurchased in the open market [1],[2] 14 17 31 33
Average repurchase price per share [2],[3] $ 144.94 $ 120.26 $ 141.08 $ 115.41
Total cost [2] $ 1,938 $ 2,072 $ 4,331 $ 3,850
[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 and six months ended March 31, 2019 and 2018. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017 for six months, respectively, and December 31, 2018 and 2017 for three months, respectively. Also, these amounts exclude repurchases traded but not yet settled on or before March 31, 2019 and 2018, respectively.
[3] Average repurchase price per share is calculated based on unrounded numbers.
v3.19.1
Basic and Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Net income $ 2,977 $ 2,605 $ 5,954 $ 5,127
Class A common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic [1] $ 2,287 $ 2,007 $ 4,577 $ 3,952
Weighted- Average Shares Outstanding - Basic 1,748 1,798 1,754 1,805
Earnings per Share - Basic [2] $ 1.31 $ 1.12 $ 2.61 $ 2.19
Income Allocation - Diluted [1] $ 2,977 $ 2,605 $ 5,954 $ 5,127
Weighted- Average Shares Outstanding - Diluted [3] 2,279 2,337 2,285 2,345
Earnings per Share - Diluted [2] $ 1.31 $ 1.11 $ 2.61 $ 2.19
Class B common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic [1] $ 523 $ 452 $ 1,044 $ 886
Weighted- Average Shares Outstanding - Basic 245 245 245 245
Earnings per Share - Basic [2] $ 2.13 $ 1.84 $ 4.25 $ 3.61
Income Allocation - Diluted [1] $ 523 $ 451 $ 1,043 $ 885
Weighted- Average Shares Outstanding - Diluted 245 245 245 245
Earnings per Share - Diluted [2] $ 2.13 $ 1.84 $ 4.25 $ 3.60
Class C common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic [1] $ 61 $ 55 $ 122 $ 110
Weighted- Average Shares Outstanding - Basic 12 12 12 13
Earnings per Share - Basic [2] $ 5.23 $ 4.46 $ 10.44 $ 8.76
Income Allocation - Diluted [1] $ 61 $ 55 $ 122 $ 109
Weighted- Average Shares Outstanding - Diluted 12 12 12 13
Earnings per Share - Diluted [2] $ 5.23 $ 4.46 $ 10.42 $ 8.74
Participating securities        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic [1],[4] $ 106 $ 91 $ 211 $ 179
Income Allocation - Diluted [1],[4] $ 106 $ 91 $ 211 $ 178
[1] Net income is allocated based on proportional ownership on an as-converted basis. The weighted-average number of shares of as-converted class B common stock used in the income allocation was 400 million for the three and six months ended March 31, 2019, and 405 million for the three and six months ended March 31, 2018. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 47 million for the three and six months ended March 31, 2019, and 49 million and 50 million for the three and six months ended March 31, 2018, respectively. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three and six months ended March 31, 2019 and 2018, and 44 million of as-converted Europe preferred stock for the three and six months ended March 31, 2019 and 2018.
[2] Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.
[3] Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes approximately 3 million common stock equivalents for the three and six months ended March 31, 2019 and 4 million common stock equivalents for the three and six months ended March 31, 2018, because their effect would have been dilutive. The computation excludes 1 million of common stock equivalents for the three and six months ended March 31, 2019, and 2 million of common stock equivalents for the three and six months ended March 31, 2018, because their effect would have been anti-dilutive.
[4] Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company’s UK&I and Europe preferred stock, restricted stock 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.
v3.19.1
Basic and Diluted Earnings Per Share - Additional Information (Detail) - shares
shares in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Common stock equivalents included in the computation of diluted shares outstanding 3 4 3 4
Common stock equivalents excluded from computation of average dilutive shares outstanding 1 2 1 2
Class B common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation 400 405 400 405
Class C common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation   49 47 50
U.K.& I preferred stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation 32 32 32 32
Europe preferred stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation 44 44 44 44
v3.19.1
Share-based Compensation - Awards Granted to Company Employees and Non-employee Directors Under the 2007 Equity Incentive Compensation Plan (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Non-qualified stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted     1,109,645  
Weighted-Average Grant Date Fair Value     $ 25.89  
Weighted-Average Exercise Price     $ 134.76  
Restricted stock units (“RSUs”)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted     2,616,550  
Weighted-Average Grant Date Fair Value     $ 135.19  
Performance-bases shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted [1]     540,538  
Weighted-Average Grant Date Fair Value [1]     $ 153.42  
Equity Incentive Compensation Plan, 2007        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Allocated Share-based Compensation Expense $ 106 $ 82 $ 201 $ 146
[1] Represents the maximum number of performance-based shares which could be earned.
v3.19.1
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Sep. 30, 2019
Sep. 30, 2018
Business Acquisition [Line Items]            
Effective income tax rate reconciliation, percent 19.00% 19.00%   21.00%    
Income tax provision $ 700 $ 612 $ 1,353 $ 1,329    
Federal statutory income tax rate, percent           24.50%
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount   80        
Tax cuts and jobs act of 2017 deferred tax liability, provisional income tax (expense) benefit   1,100        
Tax cuts and jobs act of 2017 transition tax accumulated foreign earnings, provisional income tax expense (benefit)   $ 1,100        
Increase in unrecognized tax benefits 108   146      
Effective income tax rate reconciliation Unrecognized Tax Benefits that would Favorably Impact Effective Tax Rate $ 44   $ 83      
Forecast            
Business Acquisition [Line Items]            
Federal statutory income tax rate, percent         21.00%  
v3.19.1
Accrued Litigation for Both Covered and Non-Covered Litigation (Detail)
$ in Millions
 6 Months Ended 69 Months Ended 70 Months Ended
Mar. 31, 2019
USD ($)
Mar. 31, 2018
USD ($)
Mar. 31, 2019
USD ($)
merchant
Apr. 26, 2019
merchant
Dec. 04, 2018
Loss Contingency Accrual [Roll Forward]          
Balance at beginning of period $ 1,434 $ 982      
Provision for legal matters 159 1      
Balance at end of period 914 830 $ 914    
Interchange Rate, Card-Not-Present, Credit         0.015
Interchange Rate, Card-Not-Present, Debit         0.0115
Interchange Rate, Card Present, Credit         0.003
Interchange Rate, Card Present, Debit         0.002
U.K. Merchant Litigation          
Loss Contingency Accrual [Roll Forward]          
Number of plaintiffs | merchant     450    
Unsettled          
Loss Contingency Accrual [Roll Forward]          
Provision for legal matters 35 0      
Settled Litigation          
Loss Contingency Accrual [Roll Forward]          
Loss Contingency Accrual, Payments (714) (153)      
Threatened Litigation | U.K. Merchant Litigation          
Loss Contingency Accrual [Roll Forward]          
Number of plaintiffs | merchant     30    
U.S. Covered Litigation          
Loss Contingency Accrual [Roll Forward]          
Balance at beginning of period 1,428 978      
Balance at end of period 828 828 $ 828    
U.S. Covered Litigation | Settled Litigation          
Loss Contingency Accrual [Roll Forward]          
Loss Contingency Accrual, Payments (600) (150)      
VE Territory Covered Litigation          
Loss Contingency Accrual [Roll Forward]          
Balance at beginning of period 0 1      
Provision for legal matters 159 1      
Balance at end of period 61 0 $ 61    
VE Territory Covered Litigation | Settled Litigation          
Loss Contingency Accrual [Roll Forward]          
Loss Contingency Accrual, Payments $ (98) $ (2)      
Subsequent Event | U.K. Merchant Litigation          
Loss Contingency Accrual [Roll Forward]          
Number of claims settled | merchant       100  
Merchants with outstanding claims | merchant       350