VISA INC., 10-Q filed on 2/1/2018
Quarterly Report
Document and Entity Information
3 Months Ended
Dec. 31, 2017
Jan. 26, 2018
Class A common stock
Jan. 26, 2018
Class B common stock
Jan. 26, 2018
Class C common stock
Entity Registrant Name
VISA INC. 
 
 
 
Entity Central Index Key
0001403161 
 
 
 
Current Fiscal Year End Date
--09-30 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
Document Type
10-Q 
 
 
 
Document Period End Date
Dec. 31, 2017 
 
 
 
Document Fiscal Year Focus
2018 
 
 
 
Document Fiscal Period Focus
Q1 
 
 
 
Amendment Flag
false 
 
 
 
Entity Common Stock, Shares Outstanding
 
1,802,624,578 
245,513,385 
12,400,261 
CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Assets
 
 
Cash and cash equivalents
$ 8,138 
$ 9,874 
Restricted cash—U.S. litigation escrow (Note 2)
883 
1,031 
Investment securities (Note 3):
 
 
Trading
106 
82 
Available-for-sale
3,307 
3,482 
Settlement receivable
1,618 
1,422 
Accounts receivable
1,281 
1,132 
Customer collateral (Note 5)
1,155 
1,106 
Current portion of client incentives
295 
344 
Prepaid expenses and other current assets
504 
550 
Total current assets
17,287 
19,023 
Investment securities, available-for-sale (Note 3)
2,674 
1,926 
Client incentives
557 
591 
Property, equipment and technology, net
2,238 
2,253 
Other assets
1,127 
1,226 
Intangible assets, net
28,109 
27,848 
Goodwill
15,162 
15,110 
Total assets
67,154 
67,977 
Liabilities
 
 
Accounts payable
108 
179 
Settlement payable
2,302 
2,003 
Customer collateral (Note 5)
1,155 
1,106 
Accrued compensation and benefits
389 
757 
Client incentives
2,355 
2,089 
Accrued liabilities
1,224 
1,129 
Current maturities of long-term debt (Note 4)
0 
1,749 
Accrued litigation (Note 11)
830 
982 
Total current liabilities
8,363 
9,994 
Long-term debt (Note 4)
16,621 
16,618 
Deferred tax liabilities
5,107 
5,980 
Deferred purchase consideration
1,330 
1,304 
Other liabilities
2,332 
1,321 
Total liabilities
33,753 
35,217 
Equity
 
 
Preferred stock
5,476 1
5,526 1
Right to recover for covered losses (Note 2)
(5)1
(52)1
Additional paid-in capital
16,761 
16,900 
Accumulated income
9,966 
9,508 
Accumulated other comprehensive income (loss), net:
 
 
Investment securities, available-for-sale
61 
73 
Defined benefit pension and other postretirement plans
(76)
(76)
Derivative instruments classified as cash flow hedges
(33)
(36)
Foreign currency translation adjustments
1,251 
917 
Total accumulated other comprehensive income, net
1,203 
878 
Total equity
33,401 
32,760 
Total liabilities and equity
67,154 
67,977 
Series A Preferred Stock
 
 
Equity
 
 
Preferred stock
0 
0 
U.K.& I preferred stock
 
 
Equity
 
 
Preferred stock
2,295 1
2,326 1
Europe preferred stock
 
 
Equity
 
 
Preferred stock
3,181 1
3,200 1
Class A common stock
 
 
Equity
 
 
Common stock
0 
0 
Class B common stock
 
 
Equity
 
 
Common stock
0 
0 
Class C common stock
 
 
Equity
 
 
Common stock
$ 0 
$ 0 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
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
2 
2 
Europe preferred stock
 
 
Preferred stock, shares issued
3 
3 
Preferred stock, shares outstanding
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
1,805 
1,818 
Common stock, shares outstanding
1,805 1
1,818 
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
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 
13 
Common stock, shares outstanding
12 
13 
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Operating Revenues
 
 
Service revenues
$ 2,146 
$ 1,918 
Data processing revenues
2,147 
1,892 
International transaction revenues
1,666 
1,489 
Other revenues
229 
203 
Client incentives
(1,326)
(1,041)
Net operating revenues
4,862 
4,461 
Operating Expenses
 
 
Personnel
679 
571 
Marketing
223 
218 
Network and processing
160 
145 
Professional fees
92 
80 
Depreciation and amortization
145 
146 
General and administrative
236 
186 
Litigation provision (Note 11)
0 
15 
Total operating expenses
1,535 
1,361 
Operating income
3,327 
3,100 
Non-operating Income (Expense)
 
 
Interest expense
(154)
(140)
Other
66 
19 
Total non-operating expense
(88)
(121)
Income before income taxes
3,239 
2,979 
Income tax provision (Note 10)
717 
909 
Net income
$ 2,522 
$ 2,070 
Class A common stock
 
 
Earnings Per Share
 
 
Basic earnings per share (in dollars per share)
$ 1.07 1
$ 0.86 1
Basic weighted-average shares outstanding (in shares)
1,811 
1,860 
Diluted earnings per share (in dollars per share)
$ 1.07 1
$ 0.86 1
Diluted weighted-average shares outstanding (in shares)
2,353 2
2,421 2
Class B common stock
 
 
Earnings Per Share
 
 
Basic earnings per share (in dollars per share)
$ 1.77 1
$ 1.41 1
Basic weighted-average shares outstanding (in shares)
245 
245 
Diluted earnings per share (in dollars per share)
$ 1.77 1
$ 1.41 1
Diluted weighted-average shares outstanding (in shares)
245 
245 
Class C common stock
 
 
Earnings Per Share
 
 
Basic earnings per share (in dollars per share)
$ 4.30 1
$ 3.43 1
Basic weighted-average shares outstanding (in shares)
13 
17 
Diluted earnings per share (in dollars per share)
$ 4.29 1
$ 3.42 1
Diluted weighted-average shares outstanding (in shares)
13 
17 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
 
 
Net income
$ 2,522 
$ 2,070 
Investment securities, available-for-sale:
 
 
Net unrealized gain (loss)
9 
(3)
Income tax effect
(3)
(1)
Reclassification adjustment for net gain realized in net income
(28)
0 
Income tax effect
10 
0 
Defined benefit pension and other postretirement plans:
 
 
Amortization of actuarial loss and prior service credit realized in net income
0 
6 
Income tax effect
0 
(2)
Derivative instruments classified as cash flow hedges:
 
 
Net unrealized (loss) gain
(1)
74 
Income tax effect
(5)
(7)
Reclassification adjustment for net loss realized in net income
11 
12 
Income tax effect
(2)
(2)
Foreign currency translation adjustments
334 
(988)
Other comprehensive income (loss), net of tax
325 
(911)
Comprehensive income
$ 2,847 
$ 1,159 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Operating Activities
 
 
Net income
$ 2,522 
$ 2,070 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Client incentives
1,326 
1,041 
Share-based compensation (Note 9)
68 
45 
Depreciation and amortization of property, equipment, technology and intangible assets
145 
146 
Deferred income taxes
(919)
77 
Right to recover for covered losses recorded in equity (Note 2)
(3)
(94)
Other
(23)
13 
Change in operating assets and liabilities:
 
 
Settlement receivable
(180)
56 
Accounts receivable
(146)
(89)
Client incentives
(986)
(1,129)
Other assets
92 
66 
Accounts payable
(51)
(102)
Settlement payable
275 
79 
Accrued and other liabilities
794 
316 
Accrued litigation (Note 11)
(152)
13 
Net cash provided by operating activities
2,762 
2,508 
Investing Activities
 
 
Purchases of property, equipment, technology and intangible assets
(141)
(171)
Investment securities, available-for-sale:
 
 
Purchases
(1,636)
(1,032)
Proceeds from maturities and sales
1,076 
788 
Purchases of / contributions to other investments
(6)
(2)
Net cash used in investing activities
(707)
(417)
Financing Activities
 
 
Repayments of long-term debt (Note 4)
(1,750)
0 
Dividends paid (Note 7)
(458)
(399)
Proceeds from issuance of commercial paper
0 
566 
Payments from litigation escrow account—U.S. retrospective responsibility plan (Note 2 and Note 11)
150 
0 
Cash proceeds from issuance of common stock under employee equity plans
53 
56 
Restricted stock and performance-based shares settled in cash for taxes
(88)
(60)
Net cash used in financing activities
(3,871)
(1,730)
Effect of exchange rate changes on cash and cash equivalents
80 
(156)
(Decrease) increase in cash and cash equivalents
(1,736)
205 
Cash and cash equivalents at beginning of period
9,874 
5,619 
Cash and cash equivalents at end of period
8,138 
5,824 
Supplemental Disclosure
 
 
Income taxes paid, net of refunds
183 
96 
Interest payments on debt (Note 4)
241 
244 
Accruals related to purchases of property, equipment, technology and intangible assets
26 
69 
Class A common stock
 
 
Financing Activities
 
 
Repurchase of class A common stock (Note 7)
$ (1,778)
$ (1,893)
Summary of Significant Accounting Policies
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 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, 2017 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. The ASU will replace existing revenue recognition guidance in U.S. GAAP when it becomes effective. Subsequently, the FASB also issued a series of amendments to the new revenue standard. The Company will adopt the standard effective October 1, 2018, and expects to adopt the standard using the modified retrospective transition method. The Company expects that the new standard will primarily impact recognition timing for certain fixed incentives and price discounts provided to clients, and the classification of certain client incentives between contra revenues and operating expenses. The Company is still in the process of quantifying the full effect that ASU 2014-09 and all of its related subsequent updates will have on its consolidated financial statements and related disclosures. The impact of the new standard to future financial results is unknowable as it is not possible to estimate the impact to the recognition of new customer contracts which may be executed in future periods. The Company has completed an assessment of its existing customer contracts through December 31, 2017. Application of the new standard to consolidated financial statements for the first quarter of fiscal 2018 would not have resulted in a material impact. The Company will continue to assess the impact of the new standard as new customer contracts are executed going forward.
In March 2016, the FASB issued ASU 2016-05, which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, Derivatives and Hedging, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The Company adopted the standard effective October 1, 2017. The adoption did not have a material impact on the consolidated financial statements.
In March 2016, the FASB issued ASU 2016-06, which clarifies the requirements for assessing whether contingent call/put options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment is required to assess the embedded call/put options solely in accordance with a four-step decision sequence. The Company adopted the standard effective October 1, 2017. The adoption did not have a material impact on the consolidated financial statements.
In March 2016, the FASB issued ASU 2016-07, which eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The equity method investor is required to add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The Company adopted the standard effective October 1, 2017. The adoption did not have a material impact on the consolidated financial statements.
U.S. and Europe Retrospective Responsibility Plans
U.S. and Europe Retrospective Responsibility Plans
Note 2—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 on the consolidated balance sheets. The balance of the escrow account was $0.9 billion at December 31, 2017 and $1.0 billion at September 30, 2017. The Company paid $150 million from the litigation escrow account during the three months ended December 31, 2017. See Note 11—Legal Matters.
The accrual related to the U.S. covered litigation could be either higher or lower than the litigation escrow account balance. The Company did not record an additional accrual for the U.S. covered litigation during the three months ended December 31, 2017. See Note 11—Legal Matters.
Europe Retrospective Responsibility Plan
The Company, Visa Europe or their affiliates are parties to certain existing and potential litigation relating to the setting of multilateral interchange fee rates in the Visa Europe territory (the "VE territory covered litigation"). Under the terms of the Europe retrospective responsibility plan, the Company is entitled to recover certain losses resulting from VE territory covered litigation (the "VE territory covered losses") through a periodic adjustment to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. VE territory covered losses are recorded in "right to recover for covered losses" within equity before the corresponding adjustment to the applicable conversion rate is effected. Adjustments to the conversion rate may be executed once in any six-month period unless a single, individual loss greater than €20 million is incurred, in which case, the six-month limitation does not apply. When the adjustment to the conversion rate is made, the amount previously recorded in "right to recover for covered losses" as contra-equity is then recorded against the book value of the preferred stock within stockholders' equity.
During the three months ended December 31, 2017, the Company recovered $50 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, from 13.077 and 13.948, respectively, at September 30, 2017 to 12.966 and 13.893, respectively, at December 31, 2017.
The following table sets forth the activities related to VE territory covered losses in preferred stock and "right to recover for covered losses" within equity during the three months ended December 31, 2017. VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 11—Legal Matters.
 
Preferred Stock
 
Right to Recover for Covered Losses
 
UK&I
 
Europe
 
 
(in millions)
Balance as of September 30, 2017
$
2,326

 
$
3,200

 
$
(52
)
VE territory covered losses incurred
—

 
—

 
(3
)
Recovery through conversion rate adjustment
(31
)
 
(19
)
 
50

Balance as of December 31, 2017
$
2,295

 
$
3,181

 
$
(5
)

The following table sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders' equity within the Company's unaudited consolidated balance sheet as of December 31, 2017 and September 30, 2017.(1)
 
December 31, 2017
 
September 30, 2017
 
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
$
3,667

 
$
2,295

 
$
3,414

 
$
2,326

Europe preferred stock
5,001

 
3,181

 
4,634

 
3,200

Total
8,668

 
5,476

 
8,048

 
5,526

Less: right to recover for covered losses
(5
)
 
(5
)
 
(52
)
 
(52
)
Total recovery for covered losses available
$
8,663

 
$
5,471

 
$
7,996

 
$
5,474

(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
(2) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of December 31, 2017; (b)12.966 and 13.893, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of December 31, 2017, respectively; and (c) $114.02, Visa's class A common stock closing stock price as of December 31, 2017.
(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, 2017; (b)13.077 and 13.948, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2017, respectively; and (c) $105.24, Visa's class A common stock closing stock price as of September 30, 2017.
Fair Value Measurements and Investments
Fair Value Measurements and Investments
Note 3—Fair Value Measurements and Investments
Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
Fair Value Measurements
Using Inputs Considered as
 
Level 1
 
Level 2
 
December 31,
2017
 
September 30,
2017
 
December 31,
2017
 
September 30,
2017
 
(in millions)
Assets
 
 
 
 
 
 
 
Cash equivalents and restricted cash:
 
 
 
 
 
 
 
Money market funds
$
5,918

 
$
5,935

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
$
567

 
$
2,870

Investment securities, trading:
 
 
 
 
 
 
 
Equity securities
106

 
82

 
 
 
 
Investment securities, available-for-sale:
 
 
 
 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
3,530

 
3,663

U.S. Treasury securities
2,337

 
1,621

 
 
 
 
Equity securities
114

 
124

 
 
 
 
Prepaid and other current assets:
 
 
 
 
 
 
 
Foreign exchange derivative instruments
 
 
 
 
26

 
18

Total
$
8,475

 
$
7,762

 
$
4,123

 
$
6,551

Liabilities
 
 
 
 
 
 
 
Accrued liabilities:
 
 
 
 
 
 
 
Foreign exchange derivative instruments
 
 
 
 
$
65

 
$
98

Total
$
—

 
$
—

 
$
65

 
$
98


There were no transfers between Level 1 and Level 2 assets during the three months ended December 31, 2017.
Level 1 assets measured at fair value on a recurring basis. 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 measured at fair value on a recurring basis. The fair value of U.S. government-sponsored debt securities, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. Foreign exchange derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. There were no substantive changes to the valuation techniques and related inputs used to measure fair value during the three months ended December 31, 2017.
Assets Measured at Fair Value on a Non-recurring Basis
Non-marketable equity investments and investments accounted for under the equity method. 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. When certain events or circumstances indicate that impairment may exist, the Company revalues the investments using various assumptions, including the financial metrics and ratios of comparable public companies. There were no significant impairments during the three months ended December 31, 2017 or 2016. These investments totaled $99 million and $94 million at December 31, 2017 and September 30, 2017, respectively, and are classified in other assets on the consolidated balance sheets.
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, 2017, and concluded that there was no impairment. No recent events or changes in circumstances indicate that impairment existed at December 31, 2017.
Other Fair Value Disclosures
Long-term debt. Debt instruments are measured at amortized cost on the Company's unaudited consolidated balance sheet at December 31, 2017. 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 following table presents the carrying amount and estimated fair value of the Company’s debt in order of maturity:
 
December 31, 2017
 
September 30, 2017
 
Carrying Amount
 
Estimated Fair Value
 
Carrying Amount
 
Estimated Fair Value
 
(in millions)
1.20% Senior Notes due December 2017
$
—

 
$
—

 
$
1,749

 
$
1,751

2.20% Senior Notes due December 2020
2,991

 
2,998

 
2,990

 
3,031

2.15% Senior Notes due September 2022
993

 
986

 
993

 
997

2.80% Senior Notes due December 2022
2,240

 
2,283

 
2,240

 
2,301

3.15% Senior Notes due December 2025
3,969

 
4,089

 
3,967

 
4,098

2.75% Senior Notes due September 2027
740

 
740

 
740

 
737

4.15% Senior Notes due December 2035
1,486

 
1,665

 
1,485

 
1,637

4.30% Senior Notes due December 2045
3,462

 
3,983

 
3,463

 
3,873

3.65% Senior Notes due September 2047
740

 
770

 
740

 
746

Total
$
16,621

 
$
17,514

 
$
18,367

 
$
19,171


Other financial instruments not measured at fair value. The following financial instruments are not measured at     fair value on the Company's unaudited consolidated balance sheet at December 31, 2017, but disclosure of their fair values is required: time deposits recorded in prepaid expenses and other current assets, settlement receivable and payable, commercial paper and customer collateral. The estimated fair value of such instruments at December 31, 2017 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.
Investments
Available-for-sale investment securities. The Company had $110 million in gross unrealized gains and $12 million in gross unrealized losses at December 31, 2017. There were $120 million gross unrealized gains and $4 million gross unrealized losses at September 30, 2017. A majority of the Company's available-for-sale investment securities with stated maturities are due within one to two years.
Debt
Debt
Note 4—Debt
The Company had outstanding debt as follows:
 
December 31, 2017
 
September 30, 2017
 
 
 
Principal Amount
 
Unamortized Discounts and Debt Issuance Costs
 
Carrying Amount
 
Principal Amount
 
Unamortized Discounts and Debt Issuance Costs
 
Carrying Amount
 
Effective Interest Rate
 
(in millions, except percentages)
1.20% Senior Notes due December 2017 (the "2017 Notes")
$
—

 
$
—

 
$
—

 
$
1,750

 
$
(1
)
 
$
1,749

 
1.37
%
Total current maturities of long-term debt
—

 
—

 
—

 
1,750

 
(1
)
 
1,749

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.20% Senior Notes due December 2020
3,000

 
(9
)
 
2,991

 
3,000

 
(10
)
 
2,990

 
2.30
%
2.15% Senior Notes due September 2022
1,000

 
(7
)
 
993

 
1,000

 
(7
)
 
993

 
2.30
%
2.80% Senior Notes due December 2022
2,250

 
(10
)
 
2,240

 
2,250

 
(10
)
 
2,240

 
2.89
%
3.15% Senior Notes due December 2025
4,000

 
(31
)
 
3,969

 
4,000

 
(33
)
 
3,967

 
3.26
%
2.75% Senior Notes due September 2027
750

 
(10
)
 
740

 
750

 
(10
)
 
740

 
2.91
%
4.15% Senior Notes due December 2035
1,500

 
(14
)
 
1,486

 
1,500

 
(15
)
 
1,485

 
4.23
%
4.30% Senior Notes due December 2045
3,500

 
(38
)
 
3,462

 
3,500

 
(37
)
 
3,463

 
4.37
%
3.65% Senior Notes due September 2047
750

 
(10
)
 
740

 
750

 
(10
)
 
740

 
3.73
%
Total long-term debt
16,750

 
(129
)
 
16,621

 
16,750

 
(132
)
 
16,618

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
$
16,750

 
$
(129
)
 
$
16,621

 
$
18,500

 
$
(133
)
 
$
18,367

 
 

Senior Notes
On October 11, 2017, the Company redeemed all of the $1.75 billion principal amount outstanding of the 2017 Notes. The redemption was funded with net proceeds from new fixed-rate senior notes issued by the Company in September 2017. As a result of this redemption, we recorded a $1 million loss on extinguishment of debt during the three months ended December 31, 2017.
The Company recognized interest expense for the senior notes of $138 million and $125 million for the three months ended December 31, 2017 and 2016, respectively, as non-operating expense.
Settlement Guarantee Management
Settlement Guarantee Management
Note 5—Settlement Guarantee Management
The Company indemnifies its clients for settlement losses suffered due to failure of any other clients to fund its settlement obligations in accordance with the Visa 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. The Company’s settlement exposure is limited to the amount of unsettled Visa payment transactions at any point in time. The Company requires certain clients that do not meet its credit standards to post collateral to offset potential loss from their estimated unsettled transactions. The Company’s estimated maximum settlement exposure was $71.3 billion during the three months ended December 31, 2017, compared to $67.7 billion during the three months ended September 30, 2017. Of these amounts, $4.5 billion and $2.8 billion were covered by collateral at December 31, 2017 and September 30, 2017, respectively. The total available collateral balances presented in the table below were greater than the settlement exposure covered by customer collateral held due to instances in which the available collateral exceeded the total settlement exposure for certain financial institutions at each date presented.
The Company maintained collateral as follows:

December 31,
2017
 
September 30,
2017
 
(in millions)
Cash equivalents(1)
$
1,569

 
$
1,490

Pledged securities at market value
169

 
167

Letters of credit
1,319

 
1,316

Guarantees
617

 
941

Total
$
3,674

 
$
3,914


(1) 
Cash collateral held by Visa Europe is not included on the Company's consolidated balance sheets as its clients retain beneficial ownership and the cash is only accessible to the Company in the event of default by the client on its settlement obligations.
The fair value of the settlement risk guarantee is estimated based on a proprietary probability-weighted model and was approximately $3 million at December 31, 2017 and September 30, 2017. These amounts are reflected in accrued liabilities on the Company's consolidated balance sheets.
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits
Note 6—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 and other postretirement benefit plans and the non-U.S. pension plans, comprising only the Visa Europe plans. Disclosures relating to other non-U.S. pension benefit plans are not included as they are immaterial, individually and in aggregate.
 
 
 
 
 
 
 
 
 
 
 
 

 
U.S. Plans
 
Non-U.S. Plans
 
Pension Benefits
 
Other Postretirement Benefits
 
Pension Benefits
 
Three Months Ended
December 31,
 
Three Months Ended
December 31,
 
Three Months Ended
December 31,
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
(in millions)
Service cost
$
—

 
$
—

 
$
—

 
$
—

 
$
1

 
$
2

Interest cost
8

 
9

 
—

 
—

 
3

 
3

Expected return on plan assets
(17
)
 
(18
)
 
—

 
—

 
(5
)
 
(4
)
Amortization of:


 
 
 


 


 


 
 
Prior service credit
—

 
—

 
—

 
(1
)
 
—

 
—

Actuarial loss
—

 
4

 
—

 
—

 
—

 
—

Settlement loss
—

 
2

 
—

 
—

 
—

 
—

Total net periodic benefit cost
$
(9
)
 
$
(3
)
 
$
—

 
$
(1
)
 
$
(1
)
 
$
1

Stockholders' Equity
Stockholders' Equity
Note 7—Stockholders' Equity
As-Converted Class A Common Stock. The number of shares of each series and class and the number of shares of class A common stock on an as-converted basis at December 31, 2017, are as follows:
(in millions, except conversion rates)
Shares Outstanding
 
Conversion Rate
Into Class A
Common Stock
 
As-converted Class A Common
Stock(1)
UK&I preferred stock
2

 
12.9660

 
32

Europe preferred stock
3

 
13.8930

 
44

Class A common stock(2)
1,805

 
—

 
1,805

Class B common stock
245

 
1.6483

(3) 
405

Class C common stock
12

 
4.0000

 
49

Total
 
 
 
 
2,335


(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted class A common stock is calculated based on unrounded numbers.
(2) 
Class A common stock shares outstanding exclude repurchases traded but not yet settled on or before December 31, 2017.
(3) 
The class B to class A common stock conversion rate is presented on a rounded basis. Conversion calculations for dividend payments are based on a conversion rate rounded to the tenth decimal.
Reduction in as-converted shares. During the three months ended December 31, 2017, total as-converted class A common stock was reduced by 17 million shares at an average price of $110.27 per share. Of the 17 million shares, 16 million were repurchased in the open market using $1.8 billion of operating cash on hand. Additionally, the Company recovered $50 million of VE territory covered losses in accordance with the Europe retrospective responsibility plan. 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 the as-converted class A common stock share count. See Note 2—U.S. and Europe Retrospective Responsibility Plans.
The following table presents share repurchases in the open market.(1) 
(in millions, except per share data)
Three Months Ended
December 31, 2017
Shares repurchased in the open market(2)
16

Average repurchase price per share(3)
$
110.24

Total cost
$
1,778

(1)  
Shares repurchased in the open market reflect repurchases settled during the three months ended December 31, 2017. These amounts include repurchases traded but not yet settled on or before September 30, 2017 and exclude repurchases traded but not yet settled on or before December 31, 2017.
(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. Average repurchase price per share is calculated based on unrounded numbers.
As of December 31, 2017, the Company's April 2017 share repurchase program had remaining authorized funds of $2.1 billion for share repurchase. All share repurchase programs authorized prior to April 2017 have been completed. In January 2018, the Company's board of directors authorized an additional $7.5 billion share repurchase program.
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. See Note 2—U.S. and Europe Retrospective Responsibility Plans.
The following table presents as-converted UK&I and Europe preferred stock, after the Company recovered VE territory covered losses through conversion rate adjustments, for the three months ended December 31, 2017.
 
Three Months Ended
December 31, 2017
(in millions, except per share data)
UK&I Preferred Stock
 
Europe Preferred Stock
Reduction in equivalent number of shares of class A common stock(1)
—

 
—

Effective price per share(2)
$
111.32

 
$
111.32

Recovery through conversion rate adjustment
$
31

 
$
19

(1) 
The reduction in equivalent number of shares of class A common stock was less than one million shares for both series of preferred stock.
(2) 
Effective price per share is calculated using the volume-weighted average price of the Company's class A common stock over a pricing period in accordance with the Company's current certificates of designations for its series B and C convertible participating preferred stock.
Dividends. In January 2018, the Company’s board of directors declared a quarterly cash dividend of $0.21 per share of class A common stock (determined in the case of class B and C common stock and UK&I and Europe preferred stock on an as-converted basis). The cash dividend will be paid on March 6, 2018, to all holders of record of the Company's common and preferred stock as of February 16, 2018. The Company declared and paid $458 million in dividends to holders of the Company's common stock during the three months ended December 31, 2017.
Earnings Per Share
Earnings Per Share
Note 8—Earnings Per Share
Basic earnings per share is computed by dividing net income available to each class by the weighted-average number of shares of common stock outstanding and participating securities during the period. Net income is allocated to each class of common stock and participating securities based on its proportional ownership on an as-converted basis. The weighted-average number of shares of each class of common stock outstanding reflects changes in ownership over the periods presented. See Note 7—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 Employee Stock Purchase Plan and the assumed vesting of unearned performance shares.
 
 
 
 
 
 
 
 
 
 
 
 
 

The following table presents earnings per share for the three months ended December 31, 2017.(1) 
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
1,945

 
1,811

 
$
1.07

 
 
$
2,522

 
2,353

(3) 
$
1.07

Class B common stock
435

 
245

 
$
1.77

 
 
$
434

 
245

 
$
1.77

Class C common stock
54

 
13

 
$
4.30

 
 
$
54

 
13

 
$
4.29

Participating securities(4)
88

 
Not presented

 
Not presented

 
 
$
87

 
Not presented

 
Not presented

Net income
$
2,522

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents earnings per share for the three months ended December 31, 2016.(1) 
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
1,594

 
1,860

 
$
0.86

 
 
$
2,070

 
2,421

(3) 
$
0.86

Class B common stock
347

 
245

 
$
1.41

 
 
$
346

 
245

 
$
1.41

Class C common stock
57

 
17

 
$
3.43

 
 
$
57

 
17

 
$
3.42

Participating securities(4)
72

 
Not presented

 
Not presented

 
 
$
72

 
Not presented

 
Not presented

Net income
$
2,070

 
 
 
 
 
 
 
 
 
 
 

(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 405 million for the three months ended December 31, 2017 and 2016. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 51 million and 67 million for the three months ended December 31, 2017 and 2016, respectively. The weighted-average number of shares of preferred stock, included within participating securities, was 32 million and 35 million of as-converted UK&I preferred stock for the three months ended December 31, 2017 and 2016, respectively, and 44 million of as-converted Europe preferred stock for the three months ended December 31, 2017 and 2016.
(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 5 million common stock equivalents for the three months ended December 31, 2017 and 2016, because their effect would be dilutive. The computation excludes 2 million and 3 million of common stock equivalents for the three months ended December 31, 2017 and 2016, respectively, because their effect would have been anti-dilutive.
(4) 
Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company's UK&I and Europe preferred stock, restricted stock awards, restricted stock units and earned performance-based shares. Participating securities' income is allocated based on the weighted-average number of shares of as-converted stock.
Share-based Compensation
Share-based Compensation
Note 9—Share-based Compensation
The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan during the three months ended December 31, 2017:
 
Granted
 
Weighted-Average
Grant Date Fair
Value
 
Weighted-Average
Exercise Price
Non-qualified stock options
1,622,760

 
$
17.88

 
$
109.82

Restricted stock units ("RSUs")
2,626,011

 
$
109.82

 
 
Performance-based shares(1)
641,498

 
$
120.11

 
 
(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 of $68 million for the three months ended December 31, 2017, net of estimated forfeitures, which are adjusted as appropriate.
Income Taxes
Income Taxes
Note 10—Income Taxes
The effective income tax rates were 22% and 31% for the three months ended December 31, 2017 and 2016, respectively. The effective tax rate for the three months ended December 31, 2017 differs from the effective tax rate in the same prior-year period primarily due to U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act”), enacted on December 22, 2017. The Tax Act transitions the U.S. tax system to a new territorial system and lowers the statutory federal corporate income tax rate from 35% to 21%.
The reduction of the statutory federal corporate tax rate to 21% became effective on January 1, 2018. In fiscal 2018, the Company’s statutory federal corporate rate is a blended rate of 24.5%, which will be reduced to 21% in fiscal 2019 and thereafter.
As a result of the reduction in the federal corporate tax rate, the Company remeasured its net deferred tax liabilities as of the enactment date of the Tax Act. The deferred tax remeasurement resulted in a one-time, non-cash tax benefit estimated to be approximately $1.1 billion, recorded in the three months ended December 31, 2017.
In transitioning to the new territorial tax system, the Tax Act requires the Company to include certain untaxed foreign earnings of non-U.S. subsidiaries in its fiscal 2018 taxable income. Such foreign earnings are subject to a one-time tax at 15.5% on the amount held in cash or cash equivalents, and at 8% on the remaining non-cash amount. The 15.5% and 8% tax, collectively referred to as the “transition tax”, was estimated to be $1.1 billion, and was recorded in the three months ended December 31, 2017. The Company intends to elect to pay the transition tax over a period of eight years as permitted by the Tax Act.
The above-mentioned accounting impacts of the deferred tax remeasurement and transition tax are provisional, based on currently available information and technical guidance on the interpretations of the new law. The Company continues to obtain and analyze additional information and guidance as they become available to complete the accounting for the tax impacts of the Tax Act. Additional information currently unavailable that is needed to complete the analysis includes, but is not limited to, foreign tax returns and foreign tax documentation for the computation of foreign tax credits, the final determination of the untaxed foreign earnings subject to the transition tax, and the final determination of the net deferred tax liabilities subject to remeasurement. The provisional accounting impacts may change in future reporting periods until the accounting analysis is finalized, which will occur no later than the first quarter of fiscal 2019, as permitted by Staff Accounting Bulletin 118.
The Tax Act also introduces several tax provisions, including:
•
Tax on global intangible low-tax income, which, in general, is determined annually based on the Company’s aggregate foreign subsidiaries’ income in excess of certain qualified business asset investment return. This provision is effective for the Company on October 1, 2018. The Company needs additional information to complete its analysis on whether to adopt an accounting policy to account for the tax effects of global intangible low-tax income in the period that it is subject to such tax, or to provide deferred taxes for book and tax basis differences that, upon reversal, may be subject to such tax. Hence, the Company has not recorded any tax on global intangible low-tax income in the three months ended December 31, 2017. The Company will make an accounting policy election no later than the first quarter of fiscal 2019.
•
Base erosion and anti-abuse tax, which, in general, functions like a minimum tax that partially disallows deductions for certain related party transactions. This new minimum tax is determined on a year-by-year basis, and this provision is effective for the Company on October 1, 2018. Hence, no base erosion anti-abuse tax was recorded in the three months ended December 31, 2017.
•
Deduction for foreign-derived intangible income, which, in general, allows a deduction of certain intangible income derived from serving foreign markets. This provision is effective for the Company on October 1, 2018. Hence, the Company has not recorded the impact of this provision in the three months ended December 31, 2017.
•
Other new tax provisions, which disallow certain deductions related to entertainment expenses, fringe benefits provided to employees, executive compensation, and fines or penalties or similar payments to governments. The Company has recorded provisional amounts for the tax effects of these new provisions in the three months ended December 31, 2017, based on information currently available. The provisional amounts may change in future reporting periods when additional information is obtained and analyzed, which will occur no later than the first quarter of fiscal 2019.
During the three months ended December 31, 2017, the Company's gross unrecognized tax benefits increased by $44 million. The Company's net unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate increased by $38 million. The increase in unrecognized tax benefits is primarily related to various tax positions across several jurisdictions. During the three months ended December 31, 2017 and 2016, there were no significant changes in interest and penalties related to uncertain tax positions.
The Company’s tax filings are subject to examination by the U.S. federal, state and foreign taxing authorities. The timing and outcome of the final resolutions of the various ongoing income tax examinations are highly uncertain. It is not reasonably possible to estimate the increase or decrease in unrecognized tax benefits within the next twelve months.
Legal Matters
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Legal Matters
Note 11—Legal Matters
The Company is party to various legal and regulatory proceedings. Some of these proceedings involve complex claims that are subject to substantial uncertainties and unascertainable damages. Accordingly, except as disclosed, the Company has not established reserves or ranges of possible loss related to these proceedings, as at this time in the proceedings, the matters do not relate to a probable loss and/or the amount or range of losses are not reasonably estimable. Although the Company believes that it has strong defenses for the litigation and regulatory proceedings described below, it could, in the future, incur judgments or fines or enter into settlements of claims that could have a material adverse effect on the Company's financial position, results of operations or cash flows. From time to time, the Company may engage in settlement discussions or mediations with respect to one or more of its outstanding litigation matters, either on its own behalf or collectively with other parties.
The litigation accrual is an estimate and is based on management’s understanding of its litigation profile, the specifics of each case, advice of counsel to the extent appropriate and management’s best estimate of incurred loss as of the balance sheet date.
The following table summarizes the activity related to accrued litigation:
 
Three Months Ended
 
December 31, 2017
 
December 31, 2016
 
(in millions)
Balance at beginning of period
$
982

 
$
981

Provision for uncovered legal matters
—

 
15

Accrual of VE territory covered litigation
—

 
86

Payments on legal matters
(152
)
 
(88
)
Balance at end of period
$
830

 
$
994


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 Note 2—U.S. and Europe Retrospective Responsibility Plans. An accrual for the U.S. covered litigation and a charge to the litigation provision are recorded when a loss is deemed to be probable and reasonably estimable. In making this determination, the Company evaluates available information, including but not limited to actions taken by the litigation committee. The total accrual related to the U.S. covered litigation could be either higher or lower than the escrow account balance.
The following table summarizes the activity related to U.S. covered litigation:
 
Three Months Ended
 
December 31, 2017
 
December 31, 2016
 
(in millions)
Balance at beginning of period
$
978

 
$
978

Payments on U.S. covered litigation
(150
)
 
—

Balance at end of period
$
828

 
$
978


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 2—U.S. and Europe Retrospective Responsibility Plans.
The following table summarizes the activity related to VE territory covered litigation:
 
Three Months Ended
 
December 31, 2017
 
December 31, 2016
 
(in millions)
Balance at beginning of period
$
1

 
$
2

Accrual for VE territory covered litigation
—

 
86

Payments on VE territory covered litigation
(1
)
 
(88
)
Balance at end of period
$
—

 
$
—

Legal Matters
Interchange Multidistrict Litigation (MDL) – Individual Merchant Actions
A number of individual merchant actions previously filed have been settled, and remain settled. In addition, following the automatic termination of the settlement agreement with Wal-Mart Stores Inc., Visa and Wal-Mart Stores Inc. entered into a new, unconditional settlement agreement on October 31, 2017. Consequently, as of the filing date, Visa has reached settlement agreements with individual merchants representing approximately 51% of the Visa-branded payment card sales volume of merchants who opted out of the 2012 Settlement Agreement.
VE Territory Covered Litigation
UK Merchant Litigation
Since July 2013, in excess of 300 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. They seek damages for alleged anti-competitive conduct in relation to one or more of the following types of interchange fees for credit and debit card transactions: UK domestic, Irish domestic, other European domestic, intra-European Economic Area and/or other inter-regional. As of the filing date, Visa Europe, Visa Inc. and Visa International have settled the claims asserted by over 75 Merchants, leaving more than 200 Merchants with outstanding claims.
In November 2016, a trial commenced relating to claims filed by a number of Merchants. All of these Merchants except one settled before the trial concluded in March 2017. On November 30, 2017, the court found entirely in Visa’s favor and entered judgment dismissing the remaining claim. An appeal has been lodged, and the Court of Appeal listed the matter for hearing in April 2018. A further judgment on exemption issues is expected to be released in early 2018, which will not change the overall finding on liability set out in the November 30, 2017 judgment.
In addition, over 30 additional Merchants have threatened to commence similar proceedings. Standstill agreements have been entered into with respect to some of those Merchants' claims. While the amount of interchange being challenged could be substantial, these claims have not yet been filed and their full scope is not yet known. The Company has learned that several additional European entities have indicated that they may also bring similar claims and the Company anticipates additional claims in the future.
Other Litigation
Canadian Competition Proceedings
Merchant Litigation. The court in Quebec held a class certification hearing in November 2017 and reserved decision.
Black Card
On December 28, 2017, Black Card LLC ("Black Card") filed a lawsuit against Visa Inc., Visa U.S.A. Inc., and certain Visa member financial institutions in the U.S. District Court for the Western District of Wisconsin. The complaint alleges that defendants conspired to impede Black Card's business in violation of Section 1 of the Sherman Act and fraudulently concealed their conduct. Black Card seeks treble damages, post-judgment interest, and attorneys' fees.
This action follows a lawsuit filed by Black Card in the U.S. District Court for the District of Wyoming in February 2015 relating to a contractual dispute. The District Court in Wyoming granted Visa's motions for summary judgment and the matter was dismissed. Black Card appealed this decision to the U.S. Court of Appeals for the Tenth Circuit on May 10, 2017.
Summary of Significant Accounting Policies (Policies)
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, 2017 for additional disclosures, including a summary of the Company’s significant accounting policies.
In the opinion of management, the accompanying unaudited consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Company's financial position, results of operations and cash flows for the interim periods presented.
Recently issued and adopted accounting pronouncements 
Recently Issued and Adopted Accounting Pronouncements.
In 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. The ASU will replace existing revenue recognition guidance in U.S. GAAP when it becomes effective. Subsequently, the FASB also issued a series of amendments to the new revenue standard. The Company will adopt the standard effective October 1, 2018, and expects to adopt the standard using the modified retrospective transition method. The Company expects that the new standard will primarily impact recognition timing for certain fixed incentives and price discounts provided to clients, and the classification of certain client incentives between contra revenues and operating expenses. The Company is still in the process of quantifying the full effect that ASU 2014-09 and all of its related subsequent updates will have on its consolidated financial statements and related disclosures. The impact of the new standard to future financial results is unknowable as it is not possible to estimate the impact to the recognition of new customer contracts which may be executed in future periods. The Company has completed an assessment of its existing customer contracts through December 31, 2017. Application of the new standard to consolidated financial statements for the first quarter of fiscal 2018 would not have resulted in a material impact. The Company will continue to assess the impact of the new standard as new customer contracts are executed going forward.
In March 2016, the FASB issued ASU 2016-05, which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, Derivatives and Hedging, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The Company adopted the standard effective October 1, 2017. The adoption did not have a material impact on the consolidated financial statements.
In March 2016, the FASB issued ASU 2016-06, which clarifies the requirements for assessing whether contingent call/put options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment is required to assess the embedded call/put options solely in accordance with a four-step decision sequence. The Company adopted the standard effective October 1, 2017. The adoption did not have a material impact on the consolidated financial statements.
In March 2016, the FASB issued ASU 2016-07, which eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The equity method investor is required to add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The Company adopted the standard effective October 1, 2017. The adoption did not have a material impact on the consolidated financial statements.
U.S. and Europe Retrospective Responsibility Plans (Tables)
Schedule of Activities Related to Territory Covered Losses and Right to Recover for Covered Losses 
The following table sets forth the activities related to VE territory covered losses in preferred stock and "right to recover for covered losses" within equity during the three months ended December 31, 2017. VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 11—Legal Matters.
 
Preferred Stock
 
Right to Recover for Covered Losses
 
UK&I
 
Europe
 
 
(in millions)
Balance as of September 30, 2017
$
2,326

 
$
3,200

 
$
(52
)
VE territory covered losses incurred
—

 
—

 
(3
)
Recovery through conversion rate adjustment
(31
)
 
(19
)
 
50

Balance as of December 31, 2017
$
2,295

 
$
3,181

 
$
(5
)
Schedule of As-converted and Book Value of Preferred Stock Available to Recover Europe Covered Losses 
The following table sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders' equity within the Company's unaudited consolidated balance sheet as of December 31, 2017 and September 30, 2017.(1)
 
December 31, 2017
 
September 30, 2017
 
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
$
3,667

 
$
2,295

 
$
3,414

 
$
2,326

Europe preferred stock
5,001

 
3,181

 
4,634

 
3,200

Total
8,668

 
5,476

 
8,048

 
5,526

Less: right to recover for covered losses
(5
)
 
(5
)
 
(52
)
 
(52
)
Total recovery for covered losses available
$
8,663

 
$
5,471

 
$
7,996

 
$
5,474

(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
(2) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of December 31, 2017; (b)12.966 and 13.893, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of December 31, 2017, respectively; and (c) $114.02, Visa's class A common stock closing stock price as of December 31, 2017.
(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, 2017; (b)13.077 and 13.948, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2017, respectively; and (c) $105.24, Visa's class A common stock closing stock price as of September 30, 2017.

Fair Value Measurements and Investments (Tables)
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis 
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
Fair Value Measurements
Using Inputs Considered as
 
Level 1
 
Level 2
 
December 31,
2017
 
September 30,
2017
 
December 31,
2017
 
September 30,
2017
 
(in millions)
Assets
 
 
 
 
 
 
 
Cash equivalents and restricted cash:
 
 
 
 
 
 
 
Money market funds
$
5,918

 
$
5,935

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
$
567

 
$
2,870

Investment securities, trading:
 
 
 
 
 
 
 
Equity securities
106

 
82

 
 
 
 
Investment securities, available-for-sale:
 
 
 
 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
3,530

 
3,663

U.S. Treasury securities
2,337

 
1,621

 
 
 
 
Equity securities
114

 
124

 
 
 
 
Prepaid and other current assets:
 
 
 
 
 
 
 
Foreign exchange derivative instruments
 
 
 
 
26

 
18

Total
$
8,475

 
$
7,762

 
$
4,123

 
$
6,551

Liabilities
 
 
 
 
 
 
 
Accrued liabilities:
 
 
 
 
 
 
 
Foreign exchange derivative instruments
 
 
 
 
$
65

 
$
98

Total
$
—

 
$
—

 
$
65

 
$
98

Schedule of Long-term Debt Instruments 
The following table presents the carrying amount and estimated fair value of the Company’s debt in order of maturity:
 
December 31, 2017
 
September 30, 2017
 
Carrying Amount
 
Estimated Fair Value
 
Carrying Amount
 
Estimated Fair Value
 
(in millions)
1.20% Senior Notes due December 2017
$
—

 
$
—

 
$
1,749

 
$
1,751

2.20% Senior Notes due December 2020
2,991

 
2,998

 
2,990

 
3,031

2.15% Senior Notes due September 2022
993

 
986

 
993

 
997

2.80% Senior Notes due December 2022
2,240

 
2,283

 
2,240

 
2,301

3.15% Senior Notes due December 2025
3,969

 
4,089

 
3,967

 
4,098

2.75% Senior Notes due September 2027
740

 
740

 
740

 
737

4.15% Senior Notes due December 2035
1,486

 
1,665

 
1,485

 
1,637

4.30% Senior Notes due December 2045
3,462

 
3,983

 
3,463

 
3,873

3.65% Senior Notes due September 2047
740

 
770

 
740

 
746

Total
$
16,621

 
$
17,514

 
$
18,367

 
$
19,171

Debt (Tables)
Schedule of Debt
The Company had outstanding debt as follows:
 
December 31, 2017
 
September 30, 2017
 
 
 
Principal Amount
 
Unamortized Discounts and Debt Issuance Costs
 
Carrying Amount
 
Principal Amount
 
Unamortized Discounts and Debt Issuance Costs
 
Carrying Amount
 
Effective Interest Rate
 
(in millions, except percentages)
1.20% Senior Notes due December 2017 (the "2017 Notes")
$
—

 
$
—

 
$
—

 
$
1,750

 
$
(1
)
 
$
1,749

 
1.37
%
Total current maturities of long-term debt
—

 
—

 
—

 
1,750

 
(1
)
 
1,749

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.20% Senior Notes due December 2020
3,000

 
(9
)
 
2,991

 
3,000

 
(10
)
 
2,990

 
2.30
%
2.15% Senior Notes due September 2022
1,000

 
(7
)
 
993

 
1,000

 
(7
)
 
993

 
2.30
%
2.80% Senior Notes due December 2022
2,250

 
(10
)
 
2,240

 
2,250

 
(10
)
 
2,240

 
2.89
%
3.15% Senior Notes due December 2025
4,000

 
(31
)
 
3,969

 
4,000

 
(33
)
 
3,967

 
3.26
%
2.75% Senior Notes due September 2027
750

 
(10
)
 
740

 
750

 
(10
)
 
740

 
2.91
%
4.15% Senior Notes due December 2035
1,500

 
(14
)
 
1,486

 
1,500

 
(15
)
 
1,485

 
4.23
%
4.30% Senior Notes due December 2045
3,500

 
(38
)
 
3,462

 
3,500

 
(37
)
 
3,463

 
4.37
%
3.65% Senior Notes due September 2047
750

 
(10
)
 
740

 
750

 
(10
)
 
740

 
3.73
%
Total long-term debt
16,750

 
(129
)
 
16,621

 
16,750

 
(132
)
 
16,618

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
$
16,750

 
$
(129
)
 
$
16,621

 
$
18,500

 
$
(133
)
 
$
18,367

 
 

Settlement Guarantee Management (Tables)
Schedule of Customer Collateral
The Company maintained collateral as follows:

December 31,
2017
 
September 30,
2017
 
(in millions)
Cash equivalents(1)
$
1,569

 
$
1,490

Pledged securities at market value
169

 
167

Letters of credit
1,319

 
1,316

Guarantees
617

 
941

Total
$
3,674

 
$
3,914


(1) 
Cash collateral held by Visa Europe is not included on the Company's consolidated balance sheets as its clients retain beneficial ownership and the cash is only accessible to the Company in the event of default by the client on its settlement obligations.
Pension and Other Postretirement Benefits (Tables)
Schedule of Defined Benefit Plans Disclosures
 
 
 
 
 
 
 
 
 
 
 
 

 
U.S. Plans
 
Non-U.S. Plans
 
Pension Benefits
 
Other Postretirement Benefits
 
Pension Benefits
 
Three Months Ended
December 31,
 
Three Months Ended
December 31,
 
Three Months Ended
December 31,
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
(in millions)
Service cost
$
—

 
$
—

 
$
—

 
$
—

 
$
1

 
$
2

Interest cost
8

 
9

 
—

 
—

 
3

 
3

Expected return on plan assets
(17
)
 
(18
)
 
—

 
—

 
(5
)
 
(4
)
Amortization of:


 
 
 


 


 


 
 
Prior service credit
—

 
—

 
—

 
(1
)
 
—

 
—

Actuarial loss
—

 
4

 
—

 
—

 
—

 
—

Settlement loss
—

 
2

 
—

 
—

 
—

 
—

Total net periodic benefit cost
$
(9
)
 
$
(3
)
 
$
—

 
$
(1
)
 
$
(1
)
 
$
1

Stockholders' Equity (Tables)
Schedule of Stock by Class 
The number of shares of each series and class and the number of shares of class A common stock on an as-converted basis at December 31, 2017, are as follows:
(in millions, except conversion rates)
Shares Outstanding
 
Conversion Rate
Into Class A
Common Stock
 
As-converted Class A Common
Stock(1)
UK&I preferred stock
2

 
12.9660

 
32

Europe preferred stock
3

 
13.8930

 
44

Class A common stock(2)
1,805

 
—

 
1,805

Class B common stock
245

 
1.6483

(3) 
405

Class C common stock
12

 
4.0000

 
49

Total
 
 
 
 
2,335


(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted class A common stock is calculated based on unrounded numbers.
(2) 
Class A common stock shares outstanding exclude repurchases traded but not yet settled on or before December 31, 2017.
(3) 
The class B to class A common stock conversion rate is presented on a rounded basis. Conversion calculations for dividend payments are based on a conversion rate rounded to the tenth decimal.
Share Repurchase Program Disclosure 
The following table presents share repurchases in the open market.(1) 
(in millions, except per share data)
Three Months Ended
December 31, 2017
Shares repurchased in the open market(2)
16

Average repurchase price per share(3)
$
110.24

Total cost
$
1,778

(1)  
Shares repurchased in the open market reflect repurchases settled during the three months ended December 31, 2017. These amounts include repurchases traded but not yet settled on or before September 30, 2017 and exclude repurchases traded but not yet settled on or before December 31, 2017.
(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. Average repurchase price per share is calculated based on unrounded numbers.
Effect of VE Territory Covered Losses Recovery on the Company Repurchasing its Common Stock 
The following table presents as-converted UK&I and Europe preferred stock, after the Company recovered VE territory covered losses through conversion rate adjustments, for the three months ended December 31, 2017.
 
Three Months Ended
December 31, 2017
(in millions, except per share data)
UK&I Preferred Stock
 
Europe Preferred Stock
Reduction in equivalent number of shares of class A common stock(1)
—

 
—

Effective price per share(2)
$
111.32

 
$
111.32

Recovery through conversion rate adjustment
$
31

 
$
19

(1) 
The reduction in equivalent number of shares of class A common stock was less than one million shares for both series of preferred stock.
(2) 
Effective price per share is calculated using the volume-weighted average price of the Company's class A common stock over a pricing period in accordance with the Company's current certificates of designations for its series B and C convertible participating preferred stock.
Earnings Per Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
 
 
 
 
 
 
 
 
 
 
 
 
 

The following table presents earnings per share for the three months ended December 31, 2017.(1) 
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
1,945

 
1,811

 
$
1.07

 
 
$
2,522

 
2,353

(3) 
$
1.07

Class B common stock
435

 
245

 
$
1.77

 
 
$
434

 
245

 
$
1.77

Class C common stock
54

 
13

 
$
4.30

 
 
$
54

 
13

 
$
4.29

Participating securities(4)
88

 
Not presented

 
Not presented

 
 
$
87

 
Not presented

 
Not presented

Net income
$
2,522

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents earnings per share for the three months ended December 31, 2016.(1) 
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
1,594

 
1,860

 
$
0.86

 
 
$
2,070

 
2,421

(3) 
$
0.86

Class B common stock
347

 
245

 
$
1.41

 
 
$
346

 
245

 
$
1.41

Class C common stock
57

 
17

 
$
3.43

 
 
$
57

 
17

 
$
3.42

Participating securities(4)
72

 
Not presented

 
Not presented

 
 
$
72

 
Not presented

 
Not presented

Net income
$
2,070

 
 
 
 
 
 
 
 
 
 
 

(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 405 million for the three months ended December 31, 2017 and 2016. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 51 million and 67 million for the three months ended December 31, 2017 and 2016, respectively. The weighted-average number of shares of preferred stock, included within participating securities, was 32 million and 35 million of as-converted UK&I preferred stock for the three months ended December 31, 2017 and 2016, respectively, and 44 million of as-converted Europe preferred stock for the three months ended December 31, 2017 and 2016.
(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 5 million common stock equivalents for the three months ended December 31, 2017 and 2016, because their effect would be dilutive. The computation excludes 2 million and 3 million of common stock equivalents for the three months ended December 31, 2017 and 2016, respectively, because their effect would have been anti-dilutive.
(4) 
Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company's UK&I and Europe preferred stock, restricted stock awards, restricted stock units and earned performance-based shares. Participating securities' income is allocated based on the weighted-average number of shares of as-converted stock.
Share-based Compensation (Tables)
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 during the three months ended December 31, 2017:
 
Granted
 
Weighted-Average
Grant Date Fair
Value
 
Weighted-Average
Exercise Price
Non-qualified stock options
1,622,760

 
$
17.88

 
$
109.82

Restricted stock units ("RSUs")
2,626,011

 
$
109.82

 
 
Performance-based shares(1)
641,498

 
$
120.11

 
 
(1)  
Represents the maximum number of performance-based shares which could be earned.
Legal Matters (Tables)
Schedule of Loss Contingencies by Contingency 
The following table summarizes the activity related to accrued litigation:
 
Three Months Ended
 
December 31, 2017
 
December 31, 2016
 
(in millions)
Balance at beginning of period
$
982

 
$
981

Provision for uncovered legal matters
—

 
15

Accrual of VE territory covered litigation
—

 
86

Payments on legal matters
(152
)
 
(88
)
Balance at end of period
$
830

 
$
994


Schedule of Loss Contingencies by Contingency 
The following table summarizes the activity related to U.S. covered litigation:
 
Three Months Ended
 
December 31, 2017
 
December 31, 2016
 
(in millions)
Balance at beginning of period
$
978

 
$
978

Payments on U.S. covered litigation
(150
)
 
—

Balance at end of period
$
828

 
$
978

Schedule of Loss Contingencies by Contingency 
The following table summarizes the activity related to VE territory covered litigation:
 
Three Months Ended
 
December 31, 2017
 
December 31, 2016
 
(in millions)
Balance at beginning of period
$
1

 
$
2

Accrual for VE territory covered litigation
—

 
86

Payments on VE territory covered litigation
(1
)
 
(88
)
Balance at end of period
$
—

 
$
—

Summary of Significant Accounting Policies (Details)
Jun. 30, 2017
country
Accounting Policies [Abstract]
 
Number of countries in which entity operates (more than)
200 
U.S. and Europe Retrospective Responsibility Plans (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Sep. 30, 2017
Retrospective Responsibility Plan [Abstract]
 
 
 
Escrow account
$ 883 
 
$ 1,031 
Payments for Legal Settlements
$ (150)
$ 0 
 
U.S. and Europe Retrospective Responsibility Plans - Preferred Stock Rollforward (Details)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2017
EUR (€)
Dec. 31, 2017
U.K.& I preferred stock
USD ($)
Sep. 30, 2017
U.K.& I preferred stock
Dec. 31, 2017
Europe preferred stock
USD ($)
Sep. 30, 2017
Europe preferred stock
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
50 
 
(31)
 
(19)
 
Preferred stock, conversion ratio
 
 
12.9660 
13.077 
13.8930 
13.948 
Preferred Stock and Right to Recover for Covered Losses [Roll Forward]
 
 
 
 
 
 
Preferred stock, beginning
5,526 1
 
2,326 1
 1
3,200 1
 1
Recovery through conversion rate adjustment
50 
 
(31)
 
(19)
 
Preferred stock, ending
5,476 1
 
2,295 1
 1
3,181 1
 1
Right to recover for covered losses, beginning
52 1
 
 
 
 
 
VE territory covered losses incurred
(3)
 
 
 
 
 
Right to recover for covered losses, ending
$ 5 1
 
 
 
 
 
U.S. and Europe Retrospective Responsibility Plans - Preferred Stock (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Class of Stock [Line Items]
 
 
As-converted value of preferred stock
$ 8,668 1 2
$ 8,048 1 3
Book Value of Preferred stock
5,476 1
5,526 1
Right to recover for covered losses
(5)1
(52)1
Total recovery for covered losses available, as converted
8,663 1
7,996 1
Total recovery for covered losses available, book value
5,471 1
5,474 1
Closing stock price
$ 114.02 
 
U.K.& I preferred stock
 
 
Class of Stock [Line Items]
 
 
As-converted value of preferred stock
3,667 1 2
3,414 1 3
Book Value of Preferred stock
2,295 1
2,326 1
Preferred stock, shares outstanding
2 
2 
Preferred stock, conversion ratio
12.9660 
13.077 
Europe preferred stock
 
 
Class of Stock [Line Items]
 
 
As-converted value of preferred stock
5,001 1 2
4,634 1 3
Book Value of Preferred stock
$ 3,181 1
$ 3,200 1
Preferred stock, shares outstanding
3 
3 
Preferred stock, conversion ratio
13.8930 
13.948 
Class A common stock
 
 
Class of Stock [Line Items]
 
 
Closing stock price
 
$ 105.24 
[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 December 31, 2017; (b)12.966 and 13.893, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of December 31, 2017, respectively; and (c) $114.02, Visa's class A common stock closing stock price as of December 31, 2017.(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, 2017; (b)13.077 and 13.948, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2017, respectively; and (c) $105.24, Visa's class A common stock closing stock price as of September 30, 2017.
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Assets
 
 
Investment securities, trading:
$ 106 
$ 82 
Liabilities
 
 
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount
0 
 
Fair Value, Measurements, Recurring |
Level 1
 
 
Assets
 
 
Total
8,475 
7,762 
Liabilities
 
 
Total
0 
0 
Fair Value, Measurements, Recurring |
Level 2
 
 
Assets
 
 
Total
4,123 
6,551 
Liabilities
 
 
Total
65 
98 
Fair Value, Measurements, Recurring |
Level 2 |
U.S. government-sponsored debt securities
 
 
Assets
 
 
Investment securities, available-for-sale:
3,530 
3,663 
Cash equivalents and restricted cash: |
Fair Value, Measurements, Recurring |
Level 1 |
Money market funds
 
 
Assets
 
 
Cash equivalents and restricted cash:
5,918 
5,935 
Cash equivalents and restricted cash: |
Fair Value, Measurements, Recurring |
Level 2 |
U.S. government-sponsored debt securities
 
 
Assets
 
 
Cash equivalents and restricted cash:
567 
2,870 
Investment securities, trading: |
Fair Value, Measurements, Recurring |
Level 1 |
Equity securities
 
 
Assets
 
 
Investment securities, trading:
106 
82 
Investment securities, available-for-sale: |
Fair Value, Measurements, Recurring |
Level 1 |
Equity securities
 
 
Assets
 
 
Investment securities, available-for-sale:
114 
124 
Investment securities, available-for-sale: |
Fair Value, Measurements, Recurring |
Level 1 |
U.S. Treasury securities
 
 
Assets
 
 
Investment securities, available-for-sale:
2,337 
1,621 
Prepaid and other current assets: |
Fair Value, Measurements, Recurring |
Level 2 |
Foreign exchange derivative instruments
 
 
Assets
 
 
Prepaid and other current assets:
26 
18 
Foreign exchange derivative instruments |
Accrued liabilities: |
Fair Value, Measurements, Recurring |
Level 2
 
 
Liabilities
 
 
Accrued liabilities:
$ 65 
$ 98 
Fair Value Measurements and Investments - Additional Information (Detail) (USD $)
3 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Dec. 31, 2017
Minimum
Dec. 31, 2017
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Non-marketable equity investments
$ 99,000,000 
$ 94,000,000 
 
 
Available-for-sale securities, gross unrealized gains
110,000,000 
120,000,000 
 
 
Available-for-sale securities, gross unrealized losses
$ 12,000,000 
$ 4,000,000 
 
 
Available-for-sale investment securities, stated maturities
 
 
1 year 
2 years 
Fair Value Measurements and Investments Fair Value Measurements and Investments - Fair Value of Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
2017 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
1.20% 
2020 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.20% 
 
September 2022 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.15% 
 
2022 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.80% 
 
2025 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
3.15% 
 
2027 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.75% 
 
2035 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
4.15% 
 
2045 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
4.30% 
 
2047 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
3.65% 
 
Senior Notes |
2017 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
1.20% 
Senior Notes |
2020 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.20% 
 
Senior Notes |
September 2022 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.15% 
 
Senior Notes |
2022 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.80% 
 
Senior Notes |
2025 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
3.15% 
 
Senior Notes |
2027 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.75% 
 
Senior Notes |
2035 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
4.15% 
 
Senior Notes |
2045 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
4.30% 
 
Senior Notes |
2047 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
3.65% 
 
Senior Notes |
Carrying Amount
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
$ 16,621 
$ 18,367 
Senior Notes |
Carrying Amount |
2017 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
0 
1,749 
Senior Notes |
Carrying Amount |
2020 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
2,991 
2,990 
Senior Notes |
Carrying Amount |
September 2022 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
993 
993 
Senior Notes |
Carrying Amount |
2022 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
2,240 
2,240 
Senior Notes |
Carrying Amount |
2025 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
3,969 
3,967 
Senior Notes |
Carrying Amount |
2027 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
740 
740 
Senior Notes |
Carrying Amount |
2035 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
1,486 
1,485 
Senior Notes |
Carrying Amount |
2045 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
3,462 
3,463 
Senior Notes |
Carrying Amount |
2047 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
740 
740 
Senior Notes |
Estimated Fair Value
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
17,514 
19,171 
Senior Notes |
Estimated Fair Value |
2017 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
0 
1,751 
Senior Notes |
Estimated Fair Value |
2020 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
2,998 
3,031 
Senior Notes |
Estimated Fair Value |
September 2022 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
986 
997 
Senior Notes |
Estimated Fair Value |
2022 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
2,283 
2,301 
Senior Notes |
Estimated Fair Value |
2025 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
4,089 
4,098 
Senior Notes |
Estimated Fair Value |
2027 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
740 
737 
Senior Notes |
Estimated Fair Value |
2035 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
1,665 
1,637 
Senior Notes |
Estimated Fair Value |
2045 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
3,983 
3,873 
Senior Notes |
Estimated Fair Value |
2047 Notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term Debt, Fair Value
$ 770 
$ 746 
Debt - Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Debt Instrument [Line Items]
 
 
Long-term Debt, Current Maturities
$ 0 
$ 1,749 
Carrying Amount, noncurrent
16,621 
16,618 
2017 Notes
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
1.20% 
2020 Notes
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.20% 
 
September 2022 Notes
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.15% 
 
2022 Notes
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.80% 
 
2025 Notes
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
3.15% 
 
2027 Notes
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.75% 
 
2035 Notes
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
4.15% 
 
2045 Notes
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
4.30% 
 
2047 Notes
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
3.65% 
 
Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Principal Amount, current maturities
0 
1,750 
Unamortized Discounts and Debt Issuance Costs, current maturities
0 
(1)
Long-term Debt, Current Maturities
0 
1,749 
Principal Amount, noncurrent
16,750 
16,750 
Unamortized Discounts and Debt Issuance Costs, noncurrent
(129)
(132)
Carrying Amount, noncurrent
16,621 
16,618 
Total debt, principal
16,750 
18,500 
Unamortized Discounts and Debt Issuance Costs
(129)
(133)
Carrying Amount
16,621 
18,367 
Senior Notes |
2017 Notes
 
 
Debt Instrument [Line Items]
 
 
Principal Amount, current maturities
0 
1,750 
Unamortized Discounts and Debt Issuance Costs, current maturities
0 
(1)
Long-term Debt, Current Maturities
0 
1,749 
Effective Interest Rate (percent)
1.37% 
 
Debt Instrument, Interest Rate, Stated Percentage
 
1.20% 
Senior Notes |
2020 Notes
 
 
Debt Instrument [Line Items]
 
 
Principal Amount, noncurrent
3,000 
3,000 
Unamortized Discounts and Debt Issuance Costs, noncurrent
(9)
(10)
Carrying Amount, noncurrent
2,991 
2,990 
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 
Unamortized Discounts and Debt Issuance Costs, noncurrent
(7)
(7)
Carrying Amount, noncurrent
993 
993 
Effective Interest Rate (percent)
2.30% 
 
Debt Instrument, Interest Rate, Stated Percentage
2.15% 
 
Senior Notes |
2022 Notes
 
 
Debt Instrument [Line Items]
 
 
Principal Amount, noncurrent
2,250 
2,250 
Unamortized Discounts and Debt Issuance Costs, noncurrent
(10)
(10)
Carrying Amount, noncurrent
2,240 
2,240 
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 
Unamortized Discounts and Debt Issuance Costs, noncurrent
(31)
(33)
Carrying Amount, noncurrent
3,969 
3,967 
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 
Unamortized Discounts and Debt Issuance Costs, noncurrent
(10)
(10)
Carrying Amount, noncurrent
740 
740 
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 
Unamortized Discounts and Debt Issuance Costs, noncurrent
(14)
(15)
Carrying Amount, noncurrent
1,486 
1,485 
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 
Unamortized Discounts and Debt Issuance Costs, noncurrent
(38)
(37)
Carrying Amount, noncurrent
3,462 
3,463 
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 
Unamortized Discounts and Debt Issuance Costs, noncurrent
(10)
(10)
Carrying Amount, noncurrent
$ 740 
$ 740 
Effective Interest Rate (percent)
3.73% 
 
Debt Instrument, Interest Rate, Stated Percentage
3.65% 
 
Debt - Narrative (Details) (Senior Notes, USD $)
3 Months Ended 0 Months Ended 3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Sep. 30, 2017
Oct. 11, 2017
2017 Notes
Dec. 31, 2017
2017 Notes
Sep. 30, 2017
2017 Notes
Debt Instrument [Line Items]
 
 
 
 
 
 
Principal Amount, current maturities
$ 0 
 
$ 1,750,000,000 
 
$ 0 
$ 1,750,000,000 
Repayments of Debt
 
 
 
1,750,000,000 
 
 
Gain (Loss) on Extinguishment of Debt
 
 
 
 
(1,000,000)
 
Interest expense
$ 138,000,000 
$ 125,000,000 
 
 
 
 
Settlement Guarantee Management - Additional Information (Detail) (USD $)
3 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Settlement Guarantee Management [Abstract]
 
 
Estimated Maximum Settlement Exposure
$ 71,300,000,000 
$ 67,700,000,000 
Covered settlement exposure
4,500,000,000 
2,800,000,000 
Estimated probability-weighted value of the guarantee
$ 3,000,000 
$ 3,000,000 
Collateral (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Settlement Guarantee Management [Abstract]
 
 
Cash equivalents
$ 1,569 1
$ 1,490 1
Pledged securities at market value
169 
167 
Letters of credit
1,319 
1,316 
Guarantees
617 
941 
Total
$ 3,674 
$ 3,914 
Components of Net Periodic Benefit Cost (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Pension Benefits |
U.S. Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost
$ 0 
$ 0 
Interest cost
8 
9 
Expected return on assets
(17)
(18)
Prior service credit
0 
0 
Actuarial loss (gain)
0 
4 
Settlement loss
0 
2 
Total net periodic benefit cost
(9)
(3)
Pension Benefits |
Non-U.S. Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost
1 
2 
Interest cost
3 
3 
Expected return on assets
(5)
(4)
Prior service credit
0 
0 
Actuarial loss (gain)
0 
0 
Settlement loss
0 
0 
Total net periodic benefit cost
(1)
1 
Other Postretirement Benefits |
U.S. Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost
0 
0 
Interest cost
0 
0 
Expected return on assets
0 
0 
Prior service credit
0 
(1)
Actuarial loss (gain)
0 
0 
Settlement loss
0 
0 
Total net periodic benefit cost
$ 0 
$ (1)
Stockholders' Equity - Number of Shares of Class A Common Shares Outstanding on an As-Converted Basis (Detail)
In Millions, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Schedule of Common Stock as Converted [Line Items]
 
 
As-converted Class A Common Stock
2,335 
 
U.K.& I preferred stock
 
 
Schedule of Common Stock as Converted [Line Items]
 
 
Preferred stock, shares outstanding
2 
2 
Preferred stock, conversion rate into Class A Common Stock
12.9660 
13.077 
As-converted Class A Common Stock
32 1
 
Europe preferred stock
 
 
Schedule of Common Stock as Converted [Line Items]
 
 
Preferred stock, shares outstanding
3 
3 
Preferred stock, conversion rate into Class A Common Stock
13.8930 
13.948 
As-converted Class A Common Stock
44 1
 
Class A common stock
 
 
Schedule of Common Stock as Converted [Line Items]
 
 
Common stock, shares outstanding
1,805 2
1,818 
As-converted Class A Common Stock
1,805 1 2
 
Class B common stock
 
 
Schedule of Common Stock as Converted [Line Items]
 
 
Common stock, shares outstanding
245 
245 
Common stock, conversion rate into Class A Common Stock
1.6483 3
 
As-converted Class A Common Stock
405 1
 
Class C common stock
 
 
Schedule of Common Stock as Converted [Line Items]
 
 
Common stock, shares outstanding
12 
13 
Common stock, conversion rate into Class A Common Stock
4 
 
As-converted Class A Common Stock
49 1
 
Stockholders' Equity - Additional Information (Detail) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Class A common stock
Jan. 30, 2018
Subsequent Event
Jan. 30, 2018
Subsequent Event
Class A common stock
Stockholders Equity Note [Line Items]
 
 
 
 
Reduction In As-Converted Stock, Shares
 
17 
 
 
Reduction in As-Converted Stock, Average Price Per Share
 
$ 110.27 
 
 
Stock Repurchased and Retired During Period, Shares
16 1 2
 
 
 
Stock Repurchased and Retired During Period, Value
$ 1,778,000,000 1
 
 
 
Recovery through conversion rate adjustment
50,000,000 
 
 
 
Stock Repurchase Remaining Authorized Amount
2,100,000,000 
 
 
 
Stock Repurchase Program, Authorized Amount
 
 
7,500,000,000 
 
Dividends Payable, Amount Per Share
 
 
 
$ 0.210 
Dividends, Cash
$ 458,000,000 
 
 
 
Stockholders' Equity - Share Repurchases in the Open Market (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Stockholders' Equity Note [Abstract]
 
Shares repurchased in the open market
16 1 2
Average repurchase price per share
$ 110.24 1 3
Total cost
$ 1,778 1
Stockholders' Equity Effect of VE Territory Covered Losses Recovery on the Company Repurchasing its Common Stock (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Conversion of Stock [Line Items]
 
Recovery through conversion rate adjustment
$ (50)
U.K.& I preferred stock
 
Conversion of Stock [Line Items]
 
Reduction in equivalent number of shares of class A common stock(1)
0 1
Effective price per share (in USD per share)
$ 111.32 2
Recovery through conversion rate adjustment
31 
Europe preferred stock
 
Conversion of Stock [Line Items]
 
Reduction in equivalent number of shares of class A common stock(1)
0 1
Effective price per share (in USD per share)
$ 111.32 2
Recovery through conversion rate adjustment
$ 19 
Basic and Diluted Earnings Per Share (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
 
 
Net income
$ 2,522 1
$ 2,070 1
Class A common stock
 
 
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
 
 
Income Allocation - Basic
1,945 1
1,594 1
Weighted- Average Shares Outstanding - Basic
1,811 
1,860 
Earnings per Share - Basic
$ 1.07 2
$ 0.86 2
Income Allocation - Diluted
2,522 1
2,070 1
Weighted- Average Shares Outstanding - Diluted
2,353 3
2,421 3
Earnings per Share - Diluted
$ 1.07 2
$ 0.86 2
Class B common stock
 
 
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
 
 
Income Allocation - Basic
435 1
347 1
Weighted- Average Shares Outstanding - Basic
245 
245 
Earnings per Share - Basic
$ 1.77 2
$ 1.41 2
Income Allocation - Diluted
434 1
346 1
Weighted- Average Shares Outstanding - Diluted
245 
245 
Earnings per Share - Diluted
$ 1.77 2
$ 1.41 2
Class C common stock
 
 
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
 
 
Income Allocation - Basic
54 1
57 1
Weighted- Average Shares Outstanding - Basic
13 
17 
Earnings per Share - Basic
$ 4.30 2
$ 3.43 2
Income Allocation - Diluted
54 1
57 1
Weighted- Average Shares Outstanding - Diluted
13 
17 
Earnings per Share - Diluted
$ 4.29 2
$ 3.42 2
Participating securities
 
 
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
 
 
Income Allocation - Basic
88 1 4
72 1 4
Income Allocation - Diluted
$ 87 1 4
$ 72 1 4
[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 405 million for the three months ended December 31, 2017 and 2016. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 51 million and 67 million for the three months ended December 31, 2017 and 2016, respectively. The weighted-average number of shares of preferred stock, included within participating securities, was 32 million and 35 million of as-converted UK&I preferred stock for the three months ended December 31, 2017 and 2016, respectively, and 44 million of as-converted Europe preferred stock for the three months ended December 31, 2017 and 2016.
Basic and Diluted Earnings Per Share - Additional Information (Detail)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
 
 
Common stock equivalents included in the computation of diluted shares outstanding
5 
5 
Common stock equivalents excluded from computation of average dilutive shares outstanding (less than 1 Million for the 3 months ended June 30, 2017)
2 
3 
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
405 
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
51 
67 
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 
35 
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 
Share-based Compensation - Awards Granted to Company Employees and Non-employee Directors Under the 2007 Equity Incentive Compensation Plan (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation
$ 68 
$ 45 
Non-qualified stock options
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted
1,622,760 
 
Weighted-Average Grant Date Fair Value
$ 17.88 
 
Weighted-Average Exercise Price
$ 109.82 
 
Restricted stock units (RSUs)
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted
2,626,011 
 
Weighted-Average Grant Date Fair Value
$ 109.82 
 
Performance-bases shares
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted
641,498 1
 
Weighted-Average Grant Date Fair Value
$ 120.11 1
 
Income Taxes - Additional Information (Detail) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Sep. 30, 2019
Forecast
Sep. 30, 2018
Forecast
Business Acquisition [Line Items]
 
 
 
 
Effective income tax rate reconciliation, percent
22.00% 
31.00% 
 
 
Federal statutory income tax rate, percent
 
 
21.00% 
24.50% 
Tax cuts and jobs act of 2017, incomplete accounting, deferred tax liability, provisional income tax (expense) benefit
$ 1,100,000,000 
 
 
 
Tax cuts and jobs act of 2017, incomplete accounting, transition tax accumulated foreign earnings, provisional income tax expense (benefit)
1,100,000,000 
 
 
 
Increase in unrecognized tax benefits
44,000,000 
 
 
 
Effective income tax rate reconciliation Unrecognized Tax Benefits that would Favorably Impact Effective Tax Rate
$ 38,000,000 
 
 
 
Accrued Litigation for Both Covered and Non-Covered Litigation (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 3 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
Mar. 31, 2017
U.K. Merchant Litigation
merchant
Dec. 31, 2017
U.K. Merchant Litigation
merchant
Dec. 31, 2017
Threatened Litigation
U.K. Merchant Litigation
merchant
Dec. 31, 2017
Unsettled
Dec. 31, 2016
Unsettled
Dec. 31, 2017
Settled Litigation
Dec. 31, 2016
Settled Litigation
Dec. 31, 2017
U.S. Covered Litigation
Sep. 30, 2017
U.S. Covered Litigation
Dec. 31, 2016
U.S. Covered Litigation
Sep. 30, 2016
U.S. Covered Litigation
Dec. 31, 2017
U.S. Covered Litigation
Settled Litigation
Dec. 31, 2016
U.S. Covered Litigation
Settled Litigation
Dec. 31, 2017
VE Territory Covered Litigation
Dec. 31, 2016
VE Territory Covered Litigation
Dec. 31, 2017
VE Territory Covered Litigation
Settled Litigation
Dec. 31, 2016
VE Territory Covered Litigation
Settled Litigation
Apr. 20, 2017
Interchange Multidistrict Litigation
Loss Contingency Accrual [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$ 830 
$ 982 
$ 994 
$ 981 
 
 
 
 
 
 
 
$ 828 
$ 978 
$ 978 
$ 978 
 
 
$ 1 
$ 2 
 
 
 
Provision for legal matters
 
 
 
 
 
 
 
0 
15 
 
 
 
 
 
 
 
 
0 
86 
 
 
 
Payments on litigation matters
 
 
 
 
 
 
 
 
 
(152)
(88)
 
 
 
 
(150)
0 
 
 
(1)
(88)
 
Balance at end of period
$ 830 
$ 982 
$ 994 
$ 981 
 
 
 
 
 
 
 
$ 828 
$ 978 
$ 978 
$ 978 
 
 
$ 0 
$ 0 
 
 
 
Merchants with settlement agreements (percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
51.00% 
Number of plaintiffs
 
 
 
 
 
300 
30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of claims settled
 
 
 
 
 
75 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchants with outstanding claims
 
 
 
 
 
200 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of merchant claims not settled before trial
 
 
 
 
1