VISA INC., 10-Q filed on 7/26/2019
Quarterly Report
v3.19.2
Cover - shares
 9 Months Ended
Jun. 30, 2019
Jul. 19, 2019
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2019  
Document Transition Report false  
Entity File Number 001-33977  
Entity Registrant Name VISA INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 26-0267673  
Entity Address, Address Line One P.O. Box 8999  
Entity Address, Postal Zip Code 94128-8999  
Entity Address, City or Town San Francisco,  
Entity Address, State or Province CA  
City Area Code 650  
Local Phone Number 432-3200  
Title of 12(b) Security Class A Common Stock, par value $0.0001 per share  
Trading Symbol V  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001403161  
Current Fiscal Year End Date --09-30  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Class A common stock    
Entity Common Stock, Shares Outstanding   1,726,971,494
Class B common stock    
Entity Common Stock, Shares Outstanding   245,513,385
Class C common stock    
Entity Common Stock, Shares Outstanding   11,429,957
v3.19.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jun. 30, 2019
Sep. 30, 2018
Assets    
Cash and cash equivalents $ 7,912 $ 8,162
Restricted cash equivalents—U.S. litigation escrow (Note 3 and Note 4) 902 1,491
Investment securities (Note 5) 3,265 3,547
Settlement receivable 1,689 1,582
Accounts receivable 1,531 1,208
Customer collateral (Note 3 and Note 7) 1,668 1,324
Current portion of client incentives 690 340
Prepaid expenses and other current assets 648 562
Total current assets 18,305 18,216
Investment securities (Note 5) 2,918 4,082
Client incentives 1,854 538
Property, equipment and technology, net 2,549 2,472
Goodwill 15,313 15,194
Intangible assets, net 27,272 27,558
Other assets 2,038 1,165
Total assets 70,249 69,225
Liabilities    
Accounts payable 150 183
Settlement payable 2,420 2,168
Customer collateral (Note 3 and Note 7) 1,668 1,325
Accrued compensation and benefits 687 901
Client incentives 3,690 2,834
Accrued liabilities 1,358 1,160
Deferred purchase consideration 0 1,300
Accrued litigation (Note 13) 856 1,434
Total current liabilities 10,829 11,305
Long-term debt (Note 6) 16,694 16,630
Deferred tax liabilities 4,930 4,618
Other liabilities 2,801 2,666
Total liabilities 35,254 35,219
Equity    
Preferred stock 5,462 5,470
Right to recover for covered losses (Note 4) (169) (7)
Additional paid-in capital 16,552 16,678
Accumulated income 13,040 11,318
Accumulated other comprehensive income (loss), net:    
Investment securities 6 (17)
Defined benefit pension and other postretirement plans (66) (61)
Derivative instruments 24 60
Foreign currency translation adjustments 146 565
Total accumulated other comprehensive income (loss), net 110 547
Total equity 34,995 34,006
Total liabilities and equity 70,249 69,225
Series A Preferred Stock    
Equity    
Preferred stock 0 0
U.K.& I preferred stock    
Equity    
Preferred stock 2,285 2,291
Europe preferred stock    
Equity    
Preferred stock 3,177 3,179
Class A common stock    
Equity    
Common stock 0 0
Class B common stock    
Equity    
Common stock 0 0
Class C common stock    
Equity    
Common stock $ 0 $ 0
v3.19.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2019
Sep. 30, 2018
Preferred Stock    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 25,000,000 25,000,000
Preferred stock, shares issued 5,000,000 5,000,000
Preferred stock, shares outstanding 5,000,000 5,000,000
Series A Preferred Stock    
Preferred stock, shares issued 0 0
U.K.& I preferred stock    
Preferred stock, shares issued 2,000,000 2,000,000
Preferred stock, shares outstanding 2,000,000 2,000,000
Europe preferred stock    
Preferred stock, shares issued 3,000,000 3,000,000
Preferred stock, shares outstanding 3,000,000 3,000,000
Class A common stock    
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 2,001,622,000,000 2,001,622,000,000
Common stock, shares issued 1,729,000,000 1,768,000,000
Common stock, shares outstanding 1,729,000,000 1,768,000,000
Class B common stock    
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 622,000,000 622,000,000
Common stock, shares issued 245,000,000 245,000,000
Common stock, shares outstanding 245,000,000 245,000,000
Class C common stock    
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 1,097,000,000 1,097,000,000
Common stock, shares issued 12,000,000 12,000,000
Common stock, shares outstanding 12,000,000 12,000,000
v3.19.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenues        
Net revenues $ 5,840 $ 5,240 $ 16,840 $ 15,175
Operating Expenses        
Personnel 872 852 2,573 2,355
Marketing 282 240 799 724
Network and processing 184 169 528 498
Professional fees 113 112 305 312
Depreciation and amortization 165 152 484 450
General and administrative 315 230 855 688
Litigation provision (Note 13) 1 600 30 600
Total operating expenses 1,932 2,355 5,574 5,627
Operating income 3,908 2,885 11,266 9,548
Non-operating Income (Expense)        
Interest expense, net (128) (155) (413) (462)
Investment income and other 86 82 320 182
Total non-operating income (expense) (42) (73) (93) (280)
Income before income taxes 3,866 2,812 11,173 9,268
Income tax provision (Note 12) 765 483 2,118 1,812
Net income $ 3,101 $ 2,329 $ 9,055 $ 7,456
Class A common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) $ 1.37 $ 1.00 $ 3.98 $ 3.20
Basic weighted-average shares outstanding (in shares) 1,735 1,784 1,748 1,798
Diluted earnings per share (in dollars per share) $ 1.37 $ 1.00 $ 3.97 $ 3.19
Diluted weighted-average shares outstanding (in shares) 2,265 2,321 2,278 2,337
Class B common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) $ 2.23 $ 1.66 $ 6.49 $ 5.27
Basic weighted-average shares outstanding (in shares) 245 245 245 245
Diluted earnings per share (in dollars per share) $ 2.23 $ 1.65 $ 6.48 $ 5.26
Diluted weighted-average shares outstanding (in shares) 245 245 245 245
Class C common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) $ 5.48 $ 4.02 $ 15.92 $ 12.78
Basic weighted-average shares outstanding (in shares) 12 12 12 12
Diluted earnings per share (in dollars per share) $ 5.48 $ 4.01 $ 15.90 $ 12.76
Diluted weighted-average shares outstanding (in shares) 12 12 12 12
v3.19.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Statement of Comprehensive Income [Abstract]        
Net income $ 3,101 $ 2,329 $ 9,055 $ 7,456
Investment securities:        
Net unrealized gain (loss) 5 45 20 95
Income tax effect (1) (10) (5) (22)
Reclassification adjustments 1 (24) 1 (52)
Income tax effect 0 6 0 16
Defined benefit pension and other postretirement plans:        
Net unrealized actuarial gain (loss) and prior service credit (cost) (1) 0 (8) (2)
Income tax effect 0 0 1 1
Reclassification adjustments 2 4 2 4
Income tax effect 0 (1) 0 (1)
Derivative instruments:        
Net unrealized gain (loss) (68) 114 29 72
Income tax effect 14 (19) (9) (22)
Reclassification adjustments (22) 10 (69) 45
Income tax effect 4 0 13 (5)
Foreign currency translation adjustments 262 (1,112) (419) (266)
Other comprehensive income (loss), net of tax 196 (987) (444) (137)
Comprehensive income $ 3,297 $ 1,342 $ 8,611 $ 7,319
v3.19.2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)
shares in Millions, $ in Millions
Total
U.K.& I preferred stock
Europe preferred stock
Class A common stock
Preferred Stock
Preferred Stock
U.K.& I preferred stock
Preferred Stock
Europe preferred stock
Common Stock
Class A common stock
Common Stock
Class B common stock
Common Stock
Class C common stock
Right to Recover for Covered Losses
Additional Paid-in Capital
Accumulated Income
Accumulated Other Comprehensive Income
Beginning balance (in shares) at Sep. 30, 2017           2 3 1,818 245 13        
Beginning balance at Sep. 30, 2017 $ 32,760       $ 5,526           $ (52) $ 16,900 $ 9,508 $ 878
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Net income 7,456                          
Other comprehensive income (loss), net of tax (137)                         (137)
Comprehensive income 7,319                          
VE territory covered losses incurred (Note 4) (9)                   (9)      
Recovery through conversion rate adjustment (Note 4 and Note 9)         (56)           56      
Conversion of class C common stock upon sales into public market (in shares)               3   (1)        
Vesting of restricted stock and performance-based shares (in shares)               2            
Share-based compensation, net of forfeitures (Note11) (in shares) [1]               0            
Share-based compensation, net of forfeitures (Note11) 242                     242    
Restricted stock and performance-based shares settled in cash for taxes (in shares)               (1)            
Restricted stock and performance-based shares settled in cash for taxes (90)                     (90)    
Cash proceeds from issuance of common stock under employee equity plans (in shares)               3            
Cash proceeds from issuance of common stock under employee equity plans 135                     135    
Cash dividends declared and paid, at a quarterly amount per Class A share (1,435)                       (1,435)  
Repurchase of class A common stock (Note 9) (in shares)       (47)       (47)            
Repurchase of class A common stock (Note 9) (5,604)     $ (5,604)               (501) (5,103)  
Ending balance (in shares) at Jun. 30, 2018           2 3 1,778 245 12        
Ending balance at Jun. 30, 2018 33,318       5,470           (5) 16,686 10,426 741
Beginning balance (in shares) at Sep. 30, 2017           2 3 1,818 245 13        
Beginning balance at Sep. 30, 2017 32,760       5,526           (52) 16,900 9,508 878
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Recovery through conversion rate adjustment (Note 4 and Note 9)   $ 35 $ 21                      
Ending balance (in shares) at Sep. 30, 2018           2 3 1,768 245 12        
Ending balance at Sep. 30, 2018 34,006       5,470           (7) 16,678 11,318 547
Beginning balance (in shares) at Mar. 31, 2018           2 3 1,790 245 12        
Beginning balance at Mar. 31, 2018 34,103       5,476           (6) 16,713 10,192 1,728
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Net income 2,329                          
Other comprehensive income (loss), net of tax (987)                         (987)
Comprehensive income 1,342                          
VE territory covered losses incurred (Note 4) (5)                   (5)      
Recovery through conversion rate adjustment (Note 4 and Note 9)         (6)           6      
Conversion of class C common stock upon sales into public market (in shares)               1   0 [2]        
Vesting of restricted stock and performance-based shares (in shares) [2]               0            
Share-based compensation, net of forfeitures (Note11) (in shares) [2]               0            
Share-based compensation, net of forfeitures (Note11) 89                     89    
Restricted stock and performance-based shares settled in cash for taxes (in shares) [2]               0            
Restricted stock and performance-based shares settled in cash for taxes (2)                     (2)    
Cash proceeds from issuance of common stock under employee equity plans (in shares)               1            
Cash proceeds from issuance of common stock under employee equity plans 32                     32    
Cash dividends declared and paid, at a quarterly amount per Class A share (487)                       (487)  
Repurchase of class A common stock (Note 9) (in shares)       (14)       (14)            
Repurchase of class A common stock (Note 9) (1,754)     $ (1,754)               (146) (1,608)  
Ending balance (in shares) at Jun. 30, 2018           2 3 1,778 245 12        
Ending balance at Jun. 30, 2018 33,318       5,470           (5) 16,686 10,426 741
Beginning balance (in shares) at Sep. 30, 2018           2 3 1,768 245 12        
Beginning balance at Sep. 30, 2018 34,006       5,470           (7) 16,678 11,318 547
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Net income 9,055                          
Other comprehensive income (loss), net of tax (444)                         (444)
Comprehensive income 8,611                          
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification 392                       385 7
VE territory covered losses incurred (Note 4) (170) 0 0               (170)      
Recovery through conversion rate adjustment (Note 4 and Note 9)   $ 6 $ 2   (8)           8      
Conversion of class C common stock upon sales into public market (in shares)               1   0 [3]        
Vesting of restricted stock and performance-based shares (in shares)               3            
Share-based compensation, net of forfeitures (Note11) 321                     321    
Restricted stock and performance-based shares settled in cash for taxes (in shares)               (1)            
Restricted stock and performance-based shares settled in cash for taxes (106)                     (106)    
Cash proceeds from issuance of common stock under employee equity plans (in shares)               2            
Cash proceeds from issuance of common stock under employee equity plans 127                     127    
Cash dividends declared and paid, at a quarterly amount per Class A share (1,706)                       (1,706)  
Repurchase of class A common stock (Note 9) (in shares)       (44)       (44)            
Repurchase of class A common stock (Note 9) (6,480)     $ (6,480)               (468) (6,012)  
Ending balance (in shares) at Jun. 30, 2019           2 3 1,729 245 12        
Ending balance at Jun. 30, 2019 34,995       5,462           (169) 16,552 13,040 110
Beginning balance (in shares) at Mar. 31, 2019           2 3 1,741 245 12        
Beginning balance at Mar. 31, 2019 34,275       5,464           (163) 16,547 12,513 (86)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Net income 3,101                          
Other comprehensive income (loss), net of tax 196                         196
Comprehensive income 3,297                          
VE territory covered losses incurred (Note 4) (8)                   (8)      
Recovery through conversion rate adjustment (Note 4 and Note 9)         (2)           2      
Conversion of class C common stock upon sales into public market (in shares)               0   0 [4]        
Vesting of restricted stock and performance-based shares (in shares) [4]               0            
Share-based compensation, net of forfeitures (Note11) 110                     110    
Restricted stock and performance-based shares settled in cash for taxes (in shares) [4]               0            
Restricted stock and performance-based shares settled in cash for taxes (3)                     (3)    
Cash proceeds from issuance of common stock under employee equity plans (in shares) [4]               1            
Cash proceeds from issuance of common stock under employee equity plans 38                     38    
Cash dividends declared and paid, at a quarterly amount per Class A share (565)                       (565)  
Repurchase of class A common stock (Note 9) (in shares)       (13)       (13)            
Repurchase of class A common stock (Note 9) (2,149)     $ (2,149)               (140) (2,009)  
Ending balance (in shares) at Jun. 30, 2019           2 3 1,729 245 12        
Ending balance at Jun. 30, 2019 $ 34,995       $ 5,462           $ (169) $ 16,552 $ 13,040 $ 110
[1]
Decrease is less than one million shares.
[2]
Increase or decrease is less than one million shares.
[3]
Decrease is less than one million shares.
[4]
Increase or decrease is less than one million shares.
v3.19.2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parentheticals) - $ / shares
 3 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Consolidated Statement of Changes in Equity (Parenthetical) [Abstract]            
Cash dividends declared and paid, quarterly, per Class A share $ 0.25 $ 0.25 $ 0.25 $ 0.210 $ 0.210 $ 0.195
v3.19.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Operating Activities    
Net income $ 9,055 $ 7,456
Adjustments to reconcile net income to net cash provided by operating activities:    
Client incentives (Note 2) 4,480 3,989
Share-based compensation (Note 11) 321 242
Depreciation and amortization of property, equipment, technology and intangible assets 484 450
Deferred income taxes 234 (1,133)
VE territory covered losses incurred (Note 4) (170) (9)
Other (204) (38)
Change in operating assets and liabilities:    
Settlement receivable (127) (239)
Accounts receivable (319) (82)
Client incentives (4,778) (3,483)
Other assets (172) 97
Accounts payable (22) (18)
Settlement payable 280 379
Accrued and other liabilities 257 1,408
Accrued litigation (Note 13) (577) 446
Net cash provided by operating activities 8,742 9,465
Investing Activities    
Purchases of property, equipment and technology (507) (523)
Proceeds from sales of property, equipment and technology 0 14
Investment securities:    
Purchases (2,321) (3,354)
Proceeds from maturities and sales 3,870 2,789
Acquisitions, net of cash and restricted cash acquired (136) (196)
Purchases of / contributions to other investments (482) (35)
Proceeds / distributions from other investments 10 0
Other investing activities (21) 0
Net cash provided by (used in) investing activities 413 (1,305)
Financing Activities    
Repurchase of class A common stock (Note 9) (6,480) (5,604)
Repayments of long-term debt 0 (1,750)
Dividends paid (Note 9) (1,706) (1,435)
Payment of deferred purchase consideration related to Visa Europe acquisition (1,236) 0
Cash proceeds from issuance of common stock under employee equity plans 127 135
Restricted stock and performance-based shares settled in cash for taxes (106) (90)
Net cash used in financing activities (9,401) (8,744)
Effect of exchange rate changes on cash and cash equivalents (62) (89)
Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents (308) (673)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period (Note 3) 10,977 12,011
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period (Note 3) 10,669 11,338
Supplemental Disclosure    
Income taxes paid, net of refunds 1,992 1,649
Interest payments on debt (Note 6) 503 510
Accruals related to purchases of property, equipment and technology $ 87 $ 35
v3.19.2
Summary of Significant Accounting Policies
 9 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 1—Summary of Significant Accounting Policies
Organization. Visa Inc. (“Visa” or the “Company”) is a global payments technology company that enables fast, secure and reliable electronic payments across more than 200 countries and territories. Visa and its wholly-owned consolidated subsidiaries, including Visa U.S.A. Inc. (“Visa U.S.A.”), Visa International Service Association (“Visa International”), Visa Worldwide Pte. Limited, Visa Europe Limited (“Visa Europe”), Visa Canada Corporation (“Visa Canada”), Visa Technology & Operations LLC and CyberSource Corporation, operate one of the world’s largest retail electronic payments networks — VisaNet — which facilitates authorization, clearing and settlement of payment transactions and enables the Company to provide its financial institution and merchant clients a wide range of products, platforms and value-added services. VisaNet also offers fraud protection for account holders and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for account holders on Visa products. In most cases, account holder and merchant relationships belong to, and are managed by, Visa’s financial institution clients.
Consolidation and basis of presentation. The accompanying unaudited consolidated financial statements include the accounts of Visa and its consolidated entities and are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company consolidates its majority-owned and controlled entities, including variable interest entities (“VIEs”) for which the Company is the primary beneficiary. The Company’s investments in VIEs have not been material to its consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation.
The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (SEC) requirements for Quarterly Reports on Form 10-Q and, consequently, do not include all of the annual disclosures required by U.S. GAAP. Reference should be made to the Visa Annual Report on Form 10-K for the year ended September 30, 2018 for additional disclosures, including a summary of the Company’s significant accounting policies.
In the opinion of management, the accompanying unaudited consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented.
Recently Issued and Adopted Accounting Pronouncements.
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of goods or services to customers. This new revenue standard replaces all existing revenue recognition guidance in U.S. GAAP. Subsequently, the FASB also issued a series of amendments to the new revenue standard. The new revenue standard changes the classification and timing of recognition of certain client incentives and marketing-related funds paid to customers, as well as revenues and expenses for market development funds and services provided to customers as an incentive. The Company adopted the standard effective October 1, 2018 using the modified retrospective transition method applied to the aggregate of all modifications for contracts not completed as of October 1, 2018. Results for reporting periods beginning after October 1, 2018 are presented under the new revenue standard. The comparative prior period amounts appearing on the financial statements have not been restated and continue to be reported under the prior revenue standard. See Note 2—Revenues for the impact of the new revenue standard on the accompanying unaudited consolidated financial statements as of and for the three and nine months ended June 30, 2019.
The following table summarizes the cumulative transition adjustments for the adoption of the new revenue standard recorded on the October 1, 2018 consolidated balance sheet to reflect the aggregate impact to all contracts not completed as of October 1, 2018:
 
Fiscal Year 2018 Closing Balance Sheet
 
Cumulative Transition Adjustment for New Revenue Standard
 
Fiscal Year 2019 Opening Balance Sheet
 
(in millions)
Assets
 
Current portion of client incentives
$
340

 
$
199

 
$
539

Client incentives
538

 
614

 
1,152

Liabilities
 
 
 
 
 
Client incentives
2,834

 
241

 
3,075

Accrued liabilities
1,160

 
6

 
1,166

Deferred tax liabilities
4,618

 
108

 
4,726

Other liabilities
2,666

 
58

 
2,724

Equity
 
 
 
 
 
Accumulated income
11,318

 
400

 
11,718


In January 2016, the FASB issued ASU 2016-01, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. The Company adopted the standard effective October 1, 2018, using the modified retrospective transition method for marketable equity securities and the prospective method for non-marketable equity securities. The Company has elected to use the measurement alternative for non-marketable equity securities, defined as cost adjusted for changes from observable transactions for identical or similar investments of the same issuer, less impairment. The adoption did not have a material impact on the consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02, which requires the recognition of lease assets and lease liabilities arising from operating leases on the balance sheet. Subsequently, the FASB also issued a series of amendments to this new lease standard that address the transition methods available and clarify the guidance for lessor costs and other aspects of the new lease standard. The Company will adopt the standard effective October 1, 2019 and expects to adopt using the modified retrospective transition method without restating comparative periods. The adoption is not expected to have a material impact on the consolidated financial statements.
In October 2016, the FASB issued ASU 2016-16, which requires that entities recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.
In November 2016, the FASB issued ASU 2016-18, which requires that a statement of cash flows includes the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. The Company adopted the standard effective October 1, 2018. The adoption impacted the presentation of transactions related to the U.S. litigation escrow account and customer collateral on the consolidated statements of cash flows. The prior period statement of cash flows have been retrospectively adjusted to reflect the impact of this ASU, which had no impact on the Company’s balance sheets, statements of operations or statements of comprehensive income for any period.
In March 2017, the FASB issued ASU 2017-07, which requires that the service cost component of net periodic pension and postretirement benefit cost be presented in the same line item as other employee compensation costs, while the other components be presented separately as non-operating income (expense). In addition, only the service cost component is eligible for capitalization, when applicable. Retrospective application is required for the change in income statement presentation while the change in capitalized benefit cost is required to be applied prospectively. The Company adopted the standard effective October 1, 2018, which did not have a material impact on the consolidated financial statements. The service cost component of net periodic pension and postretirement benefit cost is presented in personnel expenses while the other components are presented in other non-operating expense on the Company’s consolidated statement of operations. The Company did not apply the standard retrospectively for the change in income statement presentation as the impact would have been immaterial.
In May 2017, the FASB issued ASU 2017-09, which amends the scope of modification accounting for share-based payment arrangements. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.
In August 2017, the FASB issued ASU 2017-12, which improves the financial reporting of hedging instruments to better portray the economic results of an entity’s risk management activities in its financial statements. Visa early adopted the standard effective January 1, 2019, which did not have a material impact on the consolidated financial statements.
In August 2018, the FASB issued ASU 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.
v3.19.2
Revenues
 9 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenues
Note 2—Revenues
Impact of the New Revenue Standard
The following tables summarize the impact of the new revenue standard on the Company’s consolidated statement of operations for the three and nine months ended June 30, 2019 and the consolidated balance sheet as of June 30, 2019:
 
For the Three Months Ended
June 30, 2019
 
For the Nine Months Ended
June 30, 2019
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
(in millions)
Net revenues
$
5,840

 
$
(88
)
 
$
5,752

 
$
16,840

 
$
(179
)
 
$
16,661

 
 
 
 
 
 
 
 
 
 
 
 
Operating Expenses 
 
 
 
 
 
 
 
 
 
 
 
Marketing
282

 
(31
)
 
251

 
799

 
(100
)
 
699

Professional fees
113

 
(5
)
 
108

 
305

 
(12
)
 
293

General and administrative
315

 
(11
)
 
304

 
855

 
(21
)
 
834

Total operating expenses
1,932

 
(47
)
 
1,885

 
5,574

 
(133
)
 
5,441

Operating income
3,908

 
(41
)
 
3,867

 
11,266

 
(46
)
 
11,220

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
3,866

 
(41
)
 
3,825

 
11,173

 
(46
)
 
11,127

Income tax provision
765

 
(8
)
 
757

 
2,118

 
(6
)
 
2,112

Net income
3,101

 
(33
)
 
3,068

 
9,055

 
(40
)
 
9,015

 
June 30, 2019
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
(in millions)
Assets
 
 
 
 
 
Current portion of client incentives
$
690

 
$
(282
)
 
$
408

Client incentives
1,854

 
(811
)
 
1,043

Liabilities
 
 
 
 
 
Accounts payable
150

 
26

 
176

Client incentives
3,690

 
(439
)
 
3,251

Accrued liabilities
1,358

 
(18
)
 
1,340

Deferred tax liabilities
4,930

 
(112
)
 
4,818

Other liabilities
2,801

 
(110
)
 
2,691

Equity
 
 
 
 
 
Accumulated income
13,040

 
(440
)
 
12,600


Disaggregation of Revenues
The nature, amount, timing and uncertainty of the Company’s revenues and cash flows and how they are affected by economic factors are most appropriately depicted through the Company’s revenue categories and geographical markets. The following tables disaggregate the Company’s net revenues by revenue category and by geography for the three and nine months ended June 30, 2019 and 2018:
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service revenues
$
2,405

 
$
2,196

 
$
7,164

 
$
6,595

Data processing revenues
2,662

 
2,359

 
7,564

 
6,633

International transaction revenues
1,977

 
1,830

 
5,624

 
5,248

Other revenues
342

 
229

 
968

 
688

Client incentives
(1,546
)
 
(1,374
)
 
(4,480
)
 
(3,989
)
Net revenues
$
5,840

 
$
5,240

 
$
16,840

 
$
15,175

 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
U.S.
$
2,587

 
$
2,334

 
$
7,573

 
$
6,896

International
3,253

 
2,906

 
9,267

 
8,279

Net revenues
$
5,840

 
$
5,240

 
$
16,840

 
$
15,175


Revenue recognition. The Company's net revenues are comprised principally of the following categories: service revenues, data processing revenues, international transaction revenues, and other revenues, reduced by costs incurred under client incentives arrangements. As a payment network service provider, the Company’s obligation to the customer is to stand ready to provide continuous access to our payment network over the contractual term. Consideration is variable based primarily upon the amount and type of transactions and payments volume on Visa’s products. The Company recognizes revenues, net of sales and other similar taxes, as the payment network services are performed. Fixed fees for payment network services are generally recognized ratably over the related service period. The Company has elected the optional exemption to not disclose the remaining performance obligations related to payment network services.
Service revenues consist of revenues earned for services provided in support of client usage of Visa products. Current quarter service revenues are primarily assessed using a calculation of current pricing applied to the prior quarter's payments volume. The Company also earns revenues from assessments designed to support ongoing acceptance and volume growth initiatives, which are recognized in the same period the related volume is transacted.
Data processing revenues consist of revenues earned for authorization, clearing, settlement, network access and other maintenance and support services that facilitate transaction and information processing among the Company's clients globally. Data processing revenues are recognized in the same period the related transactions occur or services are performed.
International transaction revenues are earned for cross-border transaction processing and currency conversion activities. Cross-border transactions arise when the country of origin of the issuer is different from that of the merchant. International transaction revenues are primarily generated by cross-border payments and cash volume.
Other revenues consist mainly of license fees for use of the Visa brand, fees for account holder services, licensing and certification and other activities related to the Company's acquired entities. Other revenues also include optional services or product enhancements, such as extended account holder protection and concierge services. Other revenues are recognized in the same period the related transactions occur or services are performed.
Client incentives. The Company enters into long-term contracts with financial institution clients, merchants and strategic partners for various programs designed to increase revenues recognized by growing payments volume, increasing Visa product acceptance, winning merchant routing transactions over to Visa's network and driving innovation. These incentives are primarily accounted for as reductions to revenues or as operating expenses if the payment is in exchange for a distinct good or service provided by the customer. The Company generally capitalizes upfront and fixed incentive payments under these agreements and amortizes the amounts as a reduction to revenues ratably over the contractual term. Incentives that are earned by the customer based on performance targets are recorded as reductions to revenues based on management's estimate of each client's future performance. These accruals are regularly reviewed and estimates of performance are adjusted, as appropriate, based on changes in performance expectations, actual client performance, amendments to existing contracts or the execution of new contracts.
v3.19.2
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalent
 9 Months Ended
Jun. 30, 2019
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]  
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Note 3—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
The Company’s cash and cash equivalents include cash and certain highly liquid investments with original maturities of 90 days or less from the date of purchase. Cash equivalents are primarily recorded at cost, which approximates fair value due to their generally short maturities. The Company defines restricted cash and restricted cash equivalents as cash and cash equivalents that cannot be withdrawn or used for general operating activities.
The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:
 
June 30,
 
September 30,
 
2019
 
2018
 
2018
 
2017
 
(in millions)
Cash and cash equivalents
$
7,912

 
$
8,505

 
$
8,162

 
$
9,874

Restricted cash and restricted cash equivalents:
 
 
 
 
 
 
 
U.S. litigation escrow
902

 
1,487

 
1,491

 
1,031

Customer collateral
1,668

 
1,346

 
1,324

 
1,106

Prepaid expenses and other current assets
187

 
—

 
—

 
—

Cash, cash equivalents, restricted cash and restricted cash equivalents
$
10,669

 
$
11,338

 
$
10,977

 
$
12,011
v3.19.2
U.S. and Europe Retrospective Responsibility Plans
 9 Months Ended
Jun. 30, 2019
Retrospective Responsibility Plan [Abstract]  
U.S. and Europe Retrospective Responsibility Plans
Note 4—U.S. and Europe Retrospective Responsibility Plans
U.S. Retrospective Responsibility Plan
Under the terms of the U.S. retrospective responsibility plan, the Company maintains an escrow account from which settlements of, or judgments in, certain litigation referred to as the “U.S. covered litigation” are paid. The escrow funds are held in money market investments along with interest income earned, less applicable taxes, and are classified as restricted cash equivalents on the consolidated balance sheets. The balance of the escrow account was $902 million at June 30, 2019 and $1.5 billion at September 30, 2018. The Company paid $600 million from the litigation escrow account during the nine months ended June 30, 2019. See Note 13—Legal Matters.
The accrual related to the U.S. covered litigation could be either higher or lower than the litigation escrow account balance. The Company did not record an additional accrual for the U.S. covered litigation during the nine months ended June 30, 2019. See Note 13—Legal Matters.
Europe Retrospective Responsibility Plan
Visa Inc., Visa International and Visa Europe are parties to certain existing and potential litigation relating to the setting of multilateral interchange fee rates in the Visa Europe territory (the “VE territory covered litigation”). Under the terms of the Europe retrospective responsibility plan, the Company is entitled to recover certain losses resulting from VE territory covered litigation (the “VE territory covered losses”) through a periodic adjustment to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. VE territory covered losses are recorded in “right to recover for covered losses” within equity before the corresponding adjustment to the applicable conversion rate is effected. Adjustments to the conversion rate may be executed once in any six-month period unless a single, individual loss greater than €20 million is incurred, in which case, the six-month limitation does not apply. When the adjustment to the conversion rate is made, the amount previously recorded in “right to recover for covered losses” as contra-equity is then recorded against the book value of the preferred stock within stockholders’ equity.
During the three and nine months ended June 30, 2019, the Company recovered $2 million and $8 million, respectively, of VE territory covered losses through adjustments to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. The conversion rates applicable to the UK&I and Europe preferred stock were reduced from 12.955 and 13.888, respectively, as of September 30, 2018 to 12.936 and 13.884, respectively, as of June 30, 2019.
The following table sets forth the activities related to VE territory covered losses in preferred stock and “right to recover for covered losses” within equity during the nine months ended June 30, 2019. VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 13—Legal Matters.
 
Preferred Stock
 
Right to Recover for Covered Losses
 
UK&I
 
Europe
 
 
(in millions)
Balance as of September 30, 2018
$
2,291

 
$
3,179

 
$
(7
)
VE territory covered losses incurred
—

 
—

 
(170
)
Recovery through conversion rate adjustment
(6
)
 
(2
)
 
8

Balance as of June 30, 2019
$
2,285

 
$
3,177

 
$
(169
)

The following table(1) sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders’ equity within the Company’s consolidated balance sheets as of June 30, 2019 and September 30, 2018:
 
June 30, 2019
 
September 30, 2018
 
As-Converted Value of Preferred Stock(2)
 
Book Value of Preferred Stock
 
As-Converted Value of Preferred Stock(3)
 
Book Value of Preferred Stock
 
(in millions)
UK&I preferred stock
$
5,569

 
$
2,285

 
$
4,823

 
$
2,291

Europe preferred stock
7,606

 
3,177

 
6,580

 
3,179

Total
13,175

 
5,462

 
11,403

 
5,470

Less: right to recover for covered losses
(169
)
 
(169
)
 
(7
)
 
(7
)
Total recovery for covered losses available
$
13,006

 
$
5,293

 
$
11,396

 
$
5,463

(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
(2) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of June 30, 2019; (b) 12.936 and 13.884, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of June 30, 2019, respectively; and (c) $173.55, Visa’s class A common stock closing stock price as of June 30, 2019.
(3) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2018; (b) 12.955 and 13.888, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2018, respectively; and (c) $150.09, Visa’s class A common stock closing stock price as of September 30, 2018.
v3.19.2
Fair Value Measurements and Investments
 9 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Investments
Note 5—Fair Value Measurements and Investments
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
Fair Value Measurements
Using Inputs Considered as
 
Level 1
 
Level 2
 
June 30,
2019
 
September 30,
2018
 
June 30,
2019
 
September 30,
2018
 
(in millions)
Assets
 
 
 
 
 
 
 
Cash equivalents and restricted cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
6,275

 
$
6,252

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
$
50

 
$
1,048

Investment securities:
 
 
 
 
 
 
 
Marketable equity securities
125

 
113

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
5,484

 
5,008

U.S. Treasury securities
574

 
2,508

 
 
 
 
Other current and non-current assets:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
211

 
78

Total
$
6,974

 
$
8,873

 
$
5,745

 
$
6,134

Liabilities
 
 
 
 
 
 
 
Accrued and other liabilities:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
$
74

 
$
22

Total
$
—

 
$
—

 
$
74

 
$
22


There were no transfers between Level 1 and Level 2 assets during the nine months ended June 30, 2019.
Level 1 assets. Money market funds, publicly-traded equity securities and U.S. Treasury securities are classified as Level 1 within the fair value hierarchy, as fair value is based on quoted prices in active markets.
Level 2 assets and liabilities. The fair value of U.S. government-sponsored debt securities, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. Derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. There were no substantive changes to the valuation techniques and related inputs used to measure fair value during the nine months ended June 30, 2019.
Marketable equity securities. Marketable equity securities are publicly traded and measured at fair value within Level 1 of the fair value hierarchy, as fair value is based on quoted prices in active markets. On October 1, 2018, the Company adopted ASU 2016-01 which changed the Company’s accounting for marketable equity securities. Beginning on October 1, 2018, unrealized gains and losses from changes in fair value of marketable equity securities are recognized in non-operating income (expense).
U.S. government-sponsored debt securities and U.S. Treasury securities. The Company considers U.S. government-sponsored debt securities and U.S. Treasury securities to be available-for-sale and held $6.1 billion and $7.5 billion of these investment securities as of June 30, 2019 and September 30, 2018, respectively. All of the Company’s long-term available-for-sale investment securities are due within one to five years.
Derivative instruments. In March 2019, the Company entered into interest rate and cross-currency swap agreements on a portion of the Company’s outstanding 3.15% Senior Notes due December 2025. The Company designated the interest rate swap as a fair value hedge and the cross-currency swap as a net investment hedge. Gains and losses related to changes in fair value hedges are recognized in non-operating income (expense) along with a corresponding loss or gain related to the change in value of the underlying hedged item in the same line in the consolidated statement of operations. The change in value of net investment hedges are recorded in other comprehensive income. Amounts excluded from the effectiveness testing of net investment hedges are recognized in non-operating income (expense). Cash flows associated with derivatives designated as a fair value hedge may be included in operating, investing or financing activities on the consolidated statement of cash flows, depending on the classification of the items being hedged. Cash flows associated with financial instruments designated as net investment hedges are classified as an investing activity. There were no swap agreements outstanding as of September 30, 2018.
Assets Measured at Fair Value on a Non-recurring Basis
Non-marketable equity securities. The Company’s non-marketable equity securities are investments in privately held companies without readily determinable market values. These investments are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity and the fact that inputs used to measure fair value are unobservable and require management’s judgment. On October 1, 2018, the Company adopted ASU 2016-01 which changed the Company’s accounting for non-marketable equity securities. Beginning on October 1, 2018, the Company’s policy is to adjust the carrying value of its non-marketable equity securities to fair value when transactions for identical or similar investments of the same issuer are observable in the market. All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in non-operating income (expense).
Non-marketable equity securities totaled $679 million and $137 million at June 30, 2019 and September 30, 2018, respectively, and are classified in other assets on the consolidated balance sheets. During the three and nine months ended June 30, 2019, upward adjustments of $14 million and $80 million, respectively, were made to the carrying value of non-marketable equity securities, and downward adjustments of $6 million were made during the same periods. During the nine months ended June 30, 2019 and 2018, there were no significant impairments of non-marketable equity securities.
Non-financial assets and liabilities. Long-lived assets such as goodwill, indefinite-lived intangible assets, finite-lived intangible assets and property, equipment and technology are considered non-financial assets. The Company does not have any non-financial liabilities measured at fair value on a non-recurring basis. Finite-lived intangible assets primarily consist of customer relationships, trade names and reseller relationships, all of which were obtained through acquisitions.
If the Company were required to perform a quantitative assessment for impairment testing of goodwill and indefinite-lived intangible assets, the fair values would generally be estimated using an income approach. As the assumptions employed to measure these assets on a non-recurring basis are based on management’s judgment using internal and external data, these fair value determinations are classified as Level 3 in the fair value hierarchy. The
Company completed its annual impairment review of its indefinite-lived intangible assets and goodwill as of February 1, 2019, and concluded that there was no impairment. No recent events or changes in circumstances indicate that impairment existed at June 30, 2019.
Gains and Losses on Marketable and Non-marketable Equity Securities
The Company recognized net realized gains of $1 million and $16 million for the three and nine months ended June 30, 2019, respectively, on its equity securities sold during the periods. The Company recognized net unrealized gains of $10 million and $69 million for the three and nine months ended June 30, 2019, respectively, on equity securities held as of the end of the periods.
Other Fair Value Disclosures
Long-term debt. Debt instruments are measured at amortized cost on the Company’s consolidated balance sheets. The fair value of the debt instruments, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of long-term debt was $16.7 billion and $18.0 billion, respectively, as of June 30, 2019. The carrying value and estimated fair value of long-term debt were both $16.6 billion as of September 30, 2018.
Other financial instruments not measured at fair value. The following financial instruments are not measured at fair value on the Company’s unaudited consolidated balance sheet at June 30, 2019, but disclosure of their fair values is required: time deposits recorded in prepaid expenses and other current assets, settlement receivable and payable and customer collateral. The estimated fair value of such instruments at June 30, 2019 approximates their carrying value due to their generally short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 in the fair value hierarchy.
v3.19.2
Debt
 9 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Debt
Note 6—Debt
The Company had outstanding debt as follows:
 
June 30, 2019
 
September 30, 2018
 
Effective Interest Rate
 
(in millions, except percentages)
2.20% Senior Notes due December 2020
$
3,000

 
$
3,000

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

 
1,000

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

 
2,250

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

 
4,000

 
3.26
%
2.75% Senior Notes due September 2027
750

 
750

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

 
1,500

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

 
3,500

 
4.37
%
3.65% Senior Notes due September 2047
750

 
750

 
3.73
%
Total senior notes
16,750

 
16,750

 
 
Unamortized discounts and debt issuance costs
(111
)
 
(120
)
 
 
Hedge accounting fair value adjustments
55

 
—

 
 
Total long-term debt
$
16,694

 
$
16,630

 
 

The Company recognized interest expense for its senior notes of $106 million and $137 million for the three months ended June 30, 2019 and 2018, respectively, and $350 million and $413 million for the nine months ended June 30, 2019 and 2018, respectively. Interest expense for the three and nine months ended June 30, 2019 includes adjustments related to the Company’s hedging program. Effective interest rates disclosed in the table above do not reflect hedge accounting adjustments. Hedge accounting adjustments impacting the carrying value of the Company’s long-term debt are a result of gains or losses related to fair value hedges. These gains or losses are recognized in earnings, along with a corresponding gain or loss related to the change in value of the underlying hedged item, within non-operating income (expense) in the Company’s consolidated statement of operations. See Note 5—Fair Value Measurements and Investments for a description of the Company’s accounting treatment for fair value hedges.
Credit facility. On July 25, 2019, the Company entered into an amended and restated credit agreement for a 5 year, unsecured $5.0 billion revolving credit facility (the "Credit Facility"), which will expire on July 25, 2024. The Credit Facility is no longer governed by any financial covenants. This facility is maintained to ensure the integrity of the payment card settlement process and for general corporate purposes. Interest on borrowings under the Credit Facility will be charged at the London Interbank Offered Rate or an alternative base rate, in each case plus applicable margins that fluctuate based on the applicable credit rating of the Company's senior unsecured long-term debt.
v3.19.2
Settlement Guarantee Management
 9 Months Ended
Jun. 30, 2019
Settlement Guarantee Management [Abstract]  
Settlement Guarantee Management
Note 7—Settlement Guarantee Management
The Company indemnifies its clients for settlement losses suffered due to failure of any other client to fund its settlement obligations in accordance with the Visa operating rules. This indemnification creates settlement risk for the Company due to the difference in timing between the date of a payment transaction and the date of subsequent settlement.
Historically, the Company has experienced minimal losses as a result of its settlement risk guarantee. However, the Company’s future obligations, which could be material under its guarantees, are not determinable as they are dependent upon future events.
The Company’s settlement exposure is limited to the amount of unsettled Visa payment transactions at any point in time, which vary significantly day to day. The Company’s maximum settlement exposure was $92.0 billion and the average daily settlement exposure was $56.4 billion during the nine months ended June 30, 2019.
The Company maintains and regularly reviews global settlement risk policies and procedures to manage settlement exposure, which may require clients to post collateral if certain credit standards are not met. At June 30, 2019 and September 30, 2018, the Company held collateral as follows:

June 30,
2019
 
September 30,
2018
 
(in millions)
Cash equivalents
$
1,668

 
$
1,708

Pledged securities at market value
294

 
192

Letters of credit
1,447

 
1,382

Guarantees
582

 
860

Total
$
3,991

 
$
4,142
v3.19.2
Pension and Other Postretirement Benefits
 9 Months Ended
Jun. 30, 2019
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits
Note 8—Pension and Other Postretirement Benefits
The Company sponsors various qualified and non-qualified defined benefit pension and other postretirement benefit plans that provide for retirement and medical benefits for all eligible employees residing in the United States. The Company also sponsors other pension benefit plans that provide benefits for internationally-based employees at certain non-U.S. locations. The components of net periodic benefit cost presented below include the U.S. pension plans and the non-U.S. pension plans, comprising only the Visa Europe plans. Disclosures relating to other U.S. postretirement benefit plans and other non-U.S. pension benefit plans are not included as they are immaterial, individually and in aggregate.
 
Pension Benefits
 
U.S. Plans
 
Non-U.S. Plans
 
Three Months Ended
June 30,
 
Three Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service cost
$
—

 
$
—

 
$
1

 
$
1

Interest cost
8

 
8

 
3

 
3

Expected return on plan assets
(17
)
 
(17
)
 
(5
)
 
(5
)
Settlement loss
2

 
3

 
—

 
—

Total net periodic benefit cost (income)
$
(7
)
 
$
(6
)
 
$
(1
)
 
$
(1
)

 
Pension Benefits
 
U.S. Plans
 
Non-U.S. Plans
 
Nine Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service cost
$
—

 
$
—

 
$
3

 
$
3

Interest cost
24

 
24

 
10

 
9

Expected return on plan assets
(53
)
 
(52
)
 
(14
)
 
(15
)
Settlement loss
2

 
3

 
—

 
—

Total net periodic benefit cost (income)
$
(27
)
 
$
(25
)
 
$
(1
)
 
$
(3
)
v3.19.2
Stockholders' Equity
 9 Months Ended
Jun. 30, 2019
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
Note 9—Stockholders’ Equity
As-converted class A common stock. The following table(1) presents number of shares of each series and class and the number of shares of class A common stock on an as-converted basis:
 
June 30, 2019
 
September 30, 2018
 
 
Shares
Outstanding
 
Conversion Rate Into 
Class A
Common Stock
 
As-converted Class A
Common
Stock(2)
 
Shares
Outstanding
 
Conversion Rate Into
Class A
Common Stock
 
As-converted Class A
Common
Stock(2)
 
 
(in millions, except conversion rates)
 
UK&I preferred stock
2

 
12.9360

 
32

(3) 
2

 
12.9550

 
32

(3) 
Europe preferred stock
3

 
13.8840

 
44

(3) 
3

 
13.8880

 
44

(3) 
Class A common stock(4)
1,729

 
—

 
1,729

 
1,768

 
—

 
1,768

 
Class B common stock
245

 
1.6298

(5) 
400

 
245

 
1.6298

(5) 
400

 
Class C common stock
12

 
4.0000

 
46

 
12

 
4.0000

 
47

 
Total
 
 
 
 
2,251

 
 
 
 
 
2,291

 

(1) 
Figures in the table may not recalculate exactly due to rounding.
(2) 
As-converted class A common stock is calculated based on unrounded numbers.
(3) 
The reduction in equivalent number of shares of class A common stock was less than one million shares during the nine months ended June 30, 2019.
(4) 
Class A common stock shares outstanding reflect repurchases settled on or before June 30, 2019 and September 30, 2018.
(5) 
The class B to class A common stock conversion rate is presented on a rounded basis. Conversion calculations for dividend payments are based on a conversion rate rounded to the tenth decimal.
Reduction in as-converted shares. Under the terms of the Europe retrospective responsibility plan, the Company is entitled to recover VE territory covered losses through periodic adjustments to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. The recovery has the same economic effect on earnings per share as repurchasing the Company’s class A common stock, because it reduces the UK&I and Europe preferred stock conversion rates and consequently, reduces the as-converted class A common stock share count.
The following table presents effective price per share and recovery of VE territory covered losses through conversion rate adjustments:
 
Nine Months Ended
June 30, 2019
 
Twelve Months Ended
September 30, 2018
 
Preferred Stock
 
UK&I
 
Europe
 
UK&I
 
Europe
 
(in millions, except per share data)
Effective price per share(1)
$
141.32

 
$
150.26

 
$
113.05

 
$
112.92

Recovery through conversion rate adjustment
$
6

 
$
2

 
$
35

 
$
21

(1) 
Effective price per share for the quarter is calculated using the volume-weighted average price of the Company’s class A common stock over a pricing period in accordance with the Company’s current certificates of designations for its series B and C convertible participating preferred stock. Effective price per share for the nine months ended June 30, 2019 and fiscal 2018 is calculated using the weighted-average effective prices of the respective adjustments made during the year.
Common stock repurchases. The following table(1) presents share repurchases in the open market for the following periods:
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions, except per share data)
Shares repurchased in the open market(2)
13

 
14

 
44

 
47

Average repurchase price per share(3)
$
162.97

 
$
128.80

 
$
147.66

 
$
119.29

Total cost
$
2,149

 
$
1,754

 
$
6,480

 
$
5,604

(1)  
Figures in the table may not recalculate exactly due to rounding. Shares repurchased in the open market reflect repurchases settled during the three and nine months ended June 30, 2019 and 2018. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017 for nine months, respectively, and March 31, 2019 and 2018 for three months, respectively. Also, these amounts exclude repurchases traded but not yet settled on or before June 30, 2019 and 2018, respectively.
(2) 
All shares repurchased in the open market have been retired and constitute authorized but unissued shares.
(3) 
Average repurchase price per share is calculated based on unrounded numbers.
In January 2019, the Company’s board of directors authorized an additional $8.5 billion share repurchase program. As of June 30, 2019, the Company’s January 2019 share repurchase program had remaining authorized funds of $6.2 billion for share repurchase. All share repurchase programs authorized prior to January 2019 have been completed.
Dividends. On July 15, 2019, the Company’s board of directors declared a quarterly cash dividend of $0.25 per share of class A common stock (determined in the case of class B and C common stock and UK&I and Europe preferred stock on an as-converted basis). The cash dividend will be paid on September 3, 2019, to all holders of record as of August 16, 2019. The Company declared and paid $565 million and $487 million during the three months ended June 30, 2019 and 2018, respectively, and $1.7 billion and $1.4 billion during the nine months ended June 30, 2019 and 2018, respectively, in dividends to holders of the Company’s common and preferred stocks.
v3.19.2
Earnings Per Share
 9 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share
Note 10—Earnings Per Share
Basic earnings per share is computed by dividing net income available to each class of shares by the weighted-average number of shares of common stock outstanding and participating securities during the period. Net income is allocated to each class of common stock and participating securities based on its proportional ownership on an as-converted basis. The weighted-average number of shares outstanding of each class of common stock reflects changes in ownership over the periods presented. See Note 9—Stockholders’ Equity.
Diluted earnings per share is computed by dividing net income available by the weighted-average number of shares of common stock outstanding, participating securities and, if dilutive, potential class A common stock equivalent shares outstanding during the period. Dilutive class A common stock equivalents may consist of: (1) shares of class A common stock issuable upon the conversion of UK&I and Europe preferred stock and class B and C common stock based on the conversion rates in effect through the period, and (2) incremental shares of class A common stock calculated by applying the treasury stock method to the assumed exercise of employee stock options, the assumed purchase of stock under the Company’s Employee Stock Purchase Plan and the assumed vesting of unearned performance shares.
The following table(1) presents earnings per share for the three months ended June 30, 2019:
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
2,379

 
1,735

 
$
1.37

 
 
$
3,101

 
2,265

(3) 
$
1.37

Class B common stock
549

 
245

 
$
2.23

 
 
548

 
245

 
$
2.23

Class C common stock
63

 
12

 
$
5.48

 
 
63

 
12

 
$
5.48

Participating securities(4)
110

 
Not presented

 
Not presented

 
 
110

 
Not presented

 
Not presented

Net income
$
3,101

 
 
 
 
 
 
 
 
 
 
 

The following table(1) presents earnings per share for the nine months ended June 30, 2019:
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
6,956

 
1,748

 
$
3.98

 
 
$
9,055

 
2,278

(3) 
$
3.97

Class B common stock
1,592

 
245

 
$
6.49

 
 
1,590

 
245

 
$
6.48

Class C common stock
186

 
12

 
$
15.92

 
 
185

 
12

 
$
15.90

Participating securities(4)
321

 
Not presented

 
Not presented

 
 
321

 
Not presented

 
Not presented

Net income
$
9,055

 
 
 
 
 
 
 
 
 
 
 
The following table(1) presents earnings per share for the three months ended June 30, 2018:
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
1,793

 
1,784

 
$
1.00

 
 
$
2,329

 
2,321

(3) 
$
1.00

Class B common stock
406

 
245

 
$
1.66

 
 
406

 
245

 
$
1.65

Class C common stock
49

 
12

 
$
4.02

 
 
49

 
12

 
$
4.01

Participating securities(4)
81

 
Not presented

 
Not presented

 
 
81

 
Not presented

 
Not presented

Net income
$
2,329

 
 
 
 
 
 
 
 
 
 
 
The following table(1) presents earnings per share for the nine months ended June 30, 2018:
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
5,746

 
1,798

 
$
3.20

 
 
$
7,456

 
2,337

(3) 
$
3.19

Class B common stock
1,293

 
245

 
$
5.27

 
 
1,291

 
245

 
$
5.26

Class C common stock
159

 
12

 
$
12.78

 
 
158

 
12

 
$
12.76

Participating securities(4)
258

 
Not presented

 
Not presented

 
 
259

 
Not presented

 
Not presented

Net income
$
7,456

 
 
 
 
 
 
 
 
 
 
 

(1) 
Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.
(2) 
Net income is allocated based on proportional ownership on an as-converted basis. The weighted-average number of shares of as-converted class B common stock used in the income allocation was 400 million for the three and nine months ended June 30, 2019, and 405 million for the three and nine months ended June 30, 2018. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 46 million and 47 million for the three and nine months ended June 30, 2019, respectively, and 49 million and 50 million for the three and nine months ended June 30, 2018, respectively. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three and nine months ended June 30, 2019 and 2018. The weighted-average number of shares of preferred stock included within participating securities was 44 million of as-converted Europe preferred stock for the three and nine months ended June 30, 2019 and 2018.
(3) 
Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes approximately 3 million common stock equivalents for the three and nine months ended June 30, 2019 and 2018, because their effect would have been dilutive. The computation excludes less than 1 million of common stock equivalents for the three and nine months ended June 30, 2019 and 2018, because their effect would have been anti-dilutive.
(4) 
Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company’s UK&I and Europe preferred stock, restricted stock awards, restricted stock units and earned performance-based shares. Participating securities’ income is allocated based on the weighted-average number of shares of as-converted stock.
v3.19.2
Share-based Compensation
 9 Months Ended
Jun. 30, 2019
Share-based Compensation [Abstract]  
Share-based Compensation
Note 11—Share-based Compensation
The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan, or the EIP, during the nine months ended June 30, 2019:
 
Granted
 
Weighted-Average
Grant Date Fair
Value
 
Weighted-Average
Exercise Price
Non-qualified stock options
1,109,645

 
$
25.89

 
$
134.76

Restricted stock units (“RSUs”)
2,706,680

 
$
136.21

 
 
Performance-based shares(1)
540,538

 
$
153.42

 
 
(1)  
Represents the maximum number of performance-based shares which could be earned.
The Company’s non-qualified stock options and RSUs are equity awards with service-only conditions and are accordingly expensed on a straight-line basis over the vesting period. The Company’s performance-based shares are equity awards with service, market and performance conditions that are accounted for using the graded-vesting method. The Company recorded share-based compensation cost related to the EIP of $106 million and $307 million for the three and nine months ended June 30, 2019, respectively, and $85 million and $231 million for the three and nine months ended June 30, 2018, respectively, net of estimated forfeitures, which are adjusted as appropriate.
v3.19.2
Income Taxes
 9 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Note 12—Income Taxes
The effective income tax rates were 20% and 19% for the three and nine months ended June 30, 2019, respectively, and 17% and 20% for the three and nine months ended June 30, 2018, respectively. The effective tax rates for the three and nine months ended June 30, 2019 differ from the effective tax rates in the same prior-year periods primarily due to the effects of U.S. tax reform legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017, as discussed below:
•
The Tax Act reduced the statutory federal corporate income tax rate from 35% to 21% effective January 1, 2018. In fiscal 2018, the Company’s statutory federal corporate rate was a blended rate of 24.5%. Federal tax expense for the nine months ended June 30, 2019 was determined at a 21% tax rate compared to the 24.5% tax rate in the prior-year period;
•
The Tax Act enacted a new deduction for foreign-derived intangible income (“FDII”) and a new tax on global intangible low-tax income (“GILTI”). Both FDII and GILTI became effective for the Company on October 1, 2018; and
•
The absence of the following items recorded during the nine months ended June 30, 2018:
▪
$80 million and $81 million benefits due to non-recurring audit settlements during the three months ended March 31, 2018 and June 30, 2018, respectively;
▪
a $1.1 billion non-recurring, non-cash benefit from the remeasurement of deferred tax balances recorded in the three months ended December 31, 2017, in connection with the reduction in U.S. federal tax rate enacted by the Tax Act; and
▪
a $1.1 billion one-time transition tax expense on certain untaxed foreign earnings recorded in the three months ended December 31, 2017, in connection with the requirement enacted by the Tax Act.
The Company previously recorded provisional amounts for the transition tax and the tax effects of various other tax provisions enacted by the Tax Act. As permitted by ASU 2018-05, the Company completed the determination of the accounting impacts of the transition tax and the tax effects of these various tax provisions in the three months ended December 31, 2018. The adjustments to the provisional amounts were not material. In addition, the Company adopted the accounting policy of accounting for taxes on GILTI in the period that it is subject to such tax.
During the three and nine months ended June 30, 2019, the Company’s gross unrecognized tax benefits increased by $241 million and $387 million, respectively. The Company's net unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate increased by $51 million and $134 million, respectively. The change in unrecognized tax benefits is primarily related to various tax positions across several jurisdictions. During the three and nine months ended June 30, 2019, the Company’s accrued interest related to uncertain tax positions increased by $19 million and $51 million, respectively, and there were no significant changes in penalties. During the three and nine months ended June 30, 2018, there were no significant changes in interest and penalties related to uncertain tax positions.
The Company’s tax filings are subject to examination by the U.S. federal, state and foreign taxing authorities. The timing and outcome of the final resolutions of the various ongoing income tax examinations are highly uncertain. It is not reasonably possible to estimate the increase or decrease in unrecognized tax benefits within the next twelve months.
v3.19.2
Legal Matters
 9 Months Ended
Jun. 30, 2019
Legal Matters [Abstract]  
Legal Matters
Note 13—Legal Matters
The Company is party to various legal and regulatory proceedings. Some of these proceedings involve complex claims that are subject to substantial uncertainties and unascertainable damages. Accordingly, except as disclosed, the Company has not established reserves or ranges of possible loss related to these proceedings, as at this time in the proceedings, the matters do not relate to a probable loss and/or the amount or range of losses are not reasonably estimable. Although the Company believes that it has strong defenses for the litigation and regulatory proceedings described below, it could, in the future, incur judgments or fines or enter into settlements of claims that could have a material adverse effect on the Company’s financial position, results of operations or cash flows. From time to time, the Company may engage in settlement discussions or mediations with respect to one or more of its outstanding litigation matters, either on its own behalf or collectively with other parties.
The litigation accrual is an estimate and is based on management’s understanding of its litigation profile, the specifics of each case, advice of counsel to the extent appropriate and management’s best estimate of incurred loss as of the balance sheet date.
The following table summarizes the activity related to accrued litigation:
 
Nine Months Ended
June 30,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
1,434

 
$
982

Provision for uncovered legal matters
37

 
—

Provision for covered legal matters
165

 
601

Payments for legal matters
(780
)
 
(155
)
Balance at end of period
$
856

 
$
1,428


Accrual Summary—U.S. Covered Litigation
Visa Inc., Visa U.S.A. and Visa International are parties to certain legal proceedings that are covered by the U.S. retrospective responsibility plan, which the Company refers to as the U.S. covered litigation. See further discussion below under U.S. Covered Litigation and Note 4—U.S. and Europe Retrospective Responsibility Plans. An accrual for the U.S. covered litigation and a charge to the litigation provision are recorded when a loss is deemed to be probable and reasonably estimable. In making this determination, the Company evaluates available information, including but not limited to actions taken by the litigation committee. The total accrual related to the U.S. covered litigation could be either higher or lower than the escrow account balance.
The following table summarizes the activity related to U.S. covered litigation:
 
Nine Months Ended
June 30,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
1,428

 
$
978

Provision for interchange multidistrict litigation
—

 
600

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

 
$
1,428


Accrual Summary—VE Territory Covered Litigation
Visa Inc., Visa International and Visa Europe are parties to certain legal proceedings that are covered by the Europe retrospective responsibility plan. Unlike the U.S. retrospective responsibility plan, the Europe retrospective responsibility plan does not have an escrow account that is used to fund settlements or judgments. The Company is entitled to recover VE territory covered losses through periodic adjustments to the conversion rates applicable to the UK&I preferred stock and Europe preferred stock. An accrual for the VE territory covered losses and a reduction to stockholders’ equity will be recorded when the loss is deemed to be probable and reasonably estimable. See further discussion below under VE Territory Covered Litigation and Note 4—U.S. and Europe Retrospective Responsibility Plans.
The following table summarizes the activity related to VE territory covered litigation:
 
Nine Months Ended
June 30,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
—

 
$
1

Accrual for VE territory covered litigation
165

 
1

Payments for VE territory covered litigation
(156
)
 
(2
)
Balance at end of period
$
9

 
$
—


U.S. Covered Litigation
Interchange Multidistrict Litigation (MDL) – Putative Class Actions
On December 6, 2018, the district court held a hearing on the Damages Class plaintiffs’ motion for preliminary approval of the Amended Settlement Agreement, and on January 24, 2019, the district court granted preliminary approval. On June 7, 2019, the Damages Class plaintiffs moved for final approval of the Amended Settlement Agreement. Certain merchants in the proposed settlement class have objected to the settlement and/or submitted requests to opt out of the settlement class. Although the deadline to opt out of the settlement class was July 23, 2019, the class administrator has until August 7, 2019 to send the final report indicating the number of merchants that chose to opt out of the settlement class. The district court is scheduled to hold a final settlement approval hearing on November 7, 2019.
Settlement discussions with plaintiffs purporting to act on behalf of the putative Injunctive Relief Class are ongoing. On January 16, 2019, the bank defendants moved to dismiss the claims brought against them by the Injunctive Relief Class, on the grounds that plaintiffs lack standing and fail to state a claim against the bank defendants.
VE Territory Covered Litigation
UK Merchant Litigation
Since July 2013, in excess of 500 Merchants (the capitalized term “Merchant,” when used in this section, means a merchant together with subsidiary/affiliate companies that are party to the same claim) have commenced proceedings against Visa Europe, Visa Inc. and Visa International in the UK (and recently in Germany) relating to interchange rates in Europe, and in some cases relating to fees charged by Visa and certain Visa rules. As of the filing date, Visa Europe, Visa Inc. and Visa International have settled the claims asserted by over 100 Merchants, leaving more than 350 Merchants with outstanding claims. In addition, over 30 additional Merchants have threatened to commence similar proceedings. Standstill agreements have been entered into with respect to some of those threatened Merchant claims, several of which have been settled.
On November 29, 2018, Visa was granted permission to appeal aspects of the Court of Appeal’s judgment to the Supreme Court of the United Kingdom, including the question of whether Visa’s UK interchange restricted competition. The Supreme Court is scheduled to hold a hearing on the appeal in January 2020.
Other Litigation
European Commission Proceedings
Inter-regional Interchange Investigation. On December 4, 2018, the European Commission (EC) announced formal public consultation (known as “market testing”) of commitments proposed by Visa pursuant to Article 9 of Council Regulation (EC) No 1/2003 in order for the EC to conclude its investigation. Subject to market testing, the EC intends to adopt a decision declaring the commitments to be binding on Visa and concluding that there are no longer grounds for action by the EC and without any finding of infringement of the law by Visa. If accepted by the EC, the proposed commitments require Visa to cap its inter-regional multilateral interchange rates at 1.50% credit and 1.15% debit for “Card-Not-Present” transactions and 0.30% credit and 0.20% debit for “Card Present” transactions on consumer debit and credit cards issued outside of the European Economic Area when used at merchants located inside of the European Economic Area. The commitments would last for a period of five years following implementation. No fine will be imposed against Visa, and the commitments are proposed without prejudice to Visa’s position that its conduct did not infringe any law. The EC’s market testing was completed in January 2019.
On April 29, 2019, the EC adopted a decision making Visa’s commitments to limit interregional interchange rates in Europe binding from October 19, 2019. The commitments will remain in effect until November 1, 2024.
Canadian Merchant Litigation
Wal-Mart Canada and/or Home Depot of Canada Inc. have filed notices of appeal of the British Columbia, Ontario, Saskatchewan, Quebec and Alberta decisions approving the settlements. On June 13 and 14, 2019, the Court of Appeals in British Columbia held a hearing to consider objections to the settlement approval decision and reserved decision.
EMV Chip Liability Shift
Plaintiffs filed a renewed motion for class certification on July 16, 2018, following an earlier denial of the motion without prejudice. Plaintiffs’ renewed motion was terminated without prejudice to reinstatement on October 17, 2018, but was subsequently reinstated and is currently pending.
Kroger
The litigation was stayed until February 2, 2019. Visa and Kroger reached an agreement in principle to resolve this lawsuit, and subsequently entered into a settlement agreement. The case was dismissed on July 24, 2019.
Nuts for Candy
On October 18, 2018, the court stayed the Nuts for Candy case pending the district court’s decision on preliminary approval of the Amended Settlement Agreement discussed above under Interchange Multidistrict Litigation (MDL) – Putative Class Actions, and pending final approval of that agreement if preliminary approval is granted. Preliminary approval was granted on January 24, 2019, which extended the stay in the Nuts for Candy case pending final approval of the Amended Settlement Agreement.
Ohio Attorney General Civil Investigative Demand

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

On July 12, 2019, the Australian Competition & Consumer Commission (ACCC) informed Visa that the ACCC has commenced an investigation into certain agreements and interchange fees relating to Visa Debit. Visa is cooperating with the ACCC.
v3.19.2
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Consolidation and basis of presentation
Consolidation and basis of presentation. The accompanying unaudited consolidated financial statements include the accounts of Visa and its consolidated entities and are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company consolidates its majority-owned and controlled entities, including variable interest entities (“VIEs”) for which the Company is the primary beneficiary. The Company’s investments in VIEs have not been material to its consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation.
The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (SEC) requirements for Quarterly Reports on Form 10-Q and, consequently, do not include all of the annual disclosures required by U.S. GAAP. Reference should be made to the Visa Annual Report on Form 10-K for the year ended September 30, 2018 for additional disclosures, including a summary of the Company’s significant accounting policies.
In the opinion of management, the accompanying unaudited consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented.
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. This new revenue standard replaces all existing revenue recognition guidance in U.S. GAAP. Subsequently, the FASB also issued a series of amendments to the new revenue standard. The new revenue standard changes the classification and timing of recognition of certain client incentives and marketing-related funds paid to customers, as well as revenues and expenses for market development funds and services provided to customers as an incentive. The Company adopted the standard effective October 1, 2018 using the modified retrospective transition method applied to the aggregate of all modifications for contracts not completed as of October 1, 2018. Results for reporting periods beginning after October 1, 2018 are presented under the new revenue standard. The comparative prior period amounts appearing on the financial statements have not been restated and continue to be reported under the prior revenue standard. See Note 2—Revenues for the impact of the new revenue standard on the accompanying unaudited consolidated financial statements as of and for the three and nine months ended June 30, 2019.
The following table summarizes the cumulative transition adjustments for the adoption of the new revenue standard recorded on the October 1, 2018 consolidated balance sheet to reflect the aggregate impact to all contracts not completed as of October 1, 2018:
 
Fiscal Year 2018 Closing Balance Sheet
 
Cumulative Transition Adjustment for New Revenue Standard
 
Fiscal Year 2019 Opening Balance Sheet
 
(in millions)
Assets
 
Current portion of client incentives
$
340

 
$
199

 
$
539

Client incentives
538

 
614

 
1,152

Liabilities
 
 
 
 
 
Client incentives
2,834

 
241

 
3,075

Accrued liabilities
1,160

 
6

 
1,166

Deferred tax liabilities
4,618

 
108

 
4,726

Other liabilities
2,666

 
58

 
2,724

Equity
 
 
 
 
 
Accumulated income
11,318

 
400

 
11,718


In January 2016, the FASB issued ASU 2016-01, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. The Company adopted the standard effective October 1, 2018, using the modified retrospective transition method for marketable equity securities and the prospective method for non-marketable equity securities. The Company has elected to use the measurement alternative for non-marketable equity securities, defined as cost adjusted for changes from observable transactions for identical or similar investments of the same issuer, less impairment. The adoption did not have a material impact on the consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02, which requires the recognition of lease assets and lease liabilities arising from operating leases on the balance sheet. Subsequently, the FASB also issued a series of amendments to this new lease standard that address the transition methods available and clarify the guidance for lessor costs and other aspects of the new lease standard. The Company will adopt the standard effective October 1, 2019 and expects to adopt using the modified retrospective transition method without restating comparative periods. The adoption is not expected to have a material impact on the consolidated financial statements.
In October 2016, the FASB issued ASU 2016-16, which requires that entities recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.
In November 2016, the FASB issued ASU 2016-18, which requires that a statement of cash flows includes the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. The Company adopted the standard effective October 1, 2018. The adoption impacted the presentation of transactions related to the U.S. litigation escrow account and customer collateral on the consolidated statements of cash flows. The prior period statement of cash flows have been retrospectively adjusted to reflect the impact of this ASU, which had no impact on the Company’s balance sheets, statements of operations or statements of comprehensive income for any period.
In March 2017, the FASB issued ASU 2017-07, which requires that the service cost component of net periodic pension and postretirement benefit cost be presented in the same line item as other employee compensation costs, while the other components be presented separately as non-operating income (expense). In addition, only the service cost component is eligible for capitalization, when applicable. Retrospective application is required for the change in income statement presentation while the change in capitalized benefit cost is required to be applied prospectively. The Company adopted the standard effective October 1, 2018, which did not have a material impact on the consolidated financial statements. The service cost component of net periodic pension and postretirement benefit cost is presented in personnel expenses while the other components are presented in other non-operating expense on the Company’s consolidated statement of operations. The Company did not apply the standard retrospectively for the change in income statement presentation as the impact would have been immaterial.
In May 2017, the FASB issued ASU 2017-09, which amends the scope of modification accounting for share-based payment arrangements. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.
In August 2017, the FASB issued ASU 2017-12, which improves the financial reporting of hedging instruments to better portray the economic results of an entity’s risk management activities in its financial statements. Visa early adopted the standard effective January 1, 2019, which did not have a material impact on the consolidated financial statements.
In August 2018, the FASB issued ASU 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted the standard effective October 1, 2018. The adoption did not have a material impact on the consolidated financial statements.
On October 1, 2018, the Company adopted ASU 2016-01 which changed the Company’s accounting for marketable equity securities. Beginning on October 1, 2018, unrealized gains and losses from changes in fair value of marketable equity securities are recognized in non-operating income (expense).
Derivatives Policy Gains and losses related to changes in fair value hedges are recognized in non-operating income (expense) along with a corresponding loss or gain related to the change in value of the underlying hedged item in the same line in the consolidated statement of operations. The change in value of net investment hedges are recorded in other comprehensive income. Amounts excluded from the effectiveness testing of net investment hedges are recognized in non-operating income (expense). Cash flows associated with derivatives designated as a fair value hedge may be included in operating, investing or financing activities on the consolidated statement of cash flows, depending on the classification of the items being hedged. Cash flows associated with financial instruments designated as net investment hedges are classified as an investing activity.
Investment Policy the Company’s policy is to adjust the carrying value of its non-marketable equity securities to fair value when transactions for identical or similar investments of the same issuer are observable in the market. All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in non-operating income (expense).
v3.19.2
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Schedule of Effect from Adoption of New Revenue Standard
The following table summarizes the cumulative transition adjustments for the adoption of the new revenue standard recorded on the October 1, 2018 consolidated balance sheet to reflect the aggregate impact to all contracts not completed as of October 1, 2018:
 
Fiscal Year 2018 Closing Balance Sheet
 
Cumulative Transition Adjustment for New Revenue Standard
 
Fiscal Year 2019 Opening Balance Sheet
 
(in millions)
Assets
 
Current portion of client incentives
$
340

 
$
199

 
$
539

Client incentives
538

 
614

 
1,152

Liabilities
 
 
 
 
 
Client incentives
2,834

 
241

 
3,075

Accrued liabilities
1,160

 
6

 
1,166

Deferred tax liabilities
4,618

 
108

 
4,726

Other liabilities
2,666

 
58

 
2,724

Equity
 
 
 
 
 
Accumulated income
11,318

 
400

 
11,718
v3.19.2
Revenues (Tables)
 9 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Impact of Adoption of New Revenue Standard
The following tables summarize the impact of the new revenue standard on the Company’s consolidated statement of operations for the three and nine months ended June 30, 2019 and the consolidated balance sheet as of June 30, 2019:
 
For the Three Months Ended
June 30, 2019
 
For the Nine Months Ended
June 30, 2019
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
(in millions)
Net revenues
$
5,840

 
$
(88
)
 
$
5,752

 
$
16,840

 
$
(179
)
 
$
16,661

 
 
 
 
 
 
 
 
 
 
 
 
Operating Expenses 
 
 
 
 
 
 
 
 
 
 
 
Marketing
282

 
(31
)
 
251

 
799

 
(100
)
 
699

Professional fees
113

 
(5
)
 
108

 
305

 
(12
)
 
293

General and administrative
315

 
(11
)
 
304

 
855

 
(21
)
 
834

Total operating expenses
1,932

 
(47
)
 
1,885

 
5,574

 
(133
)
 
5,441

Operating income
3,908

 
(41
)
 
3,867

 
11,266

 
(46
)
 
11,220

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
3,866

 
(41
)
 
3,825

 
11,173

 
(46
)
 
11,127

Income tax provision
765

 
(8
)
 
757

 
2,118

 
(6
)
 
2,112

Net income
3,101

 
(33
)
 
3,068

 
9,055

 
(40
)
 
9,015

 
June 30, 2019
 
As Reported
 
Impact of the New Revenue Standard
 
Results Under Prior Revenue Standard
 
(in millions)
Assets
 
 
 
 
 
Current portion of client incentives
$
690

 
$
(282
)
 
$
408

Client incentives
1,854

 
(811
)
 
1,043

Liabilities
 
 
 
 
 
Accounts payable
150

 
26

 
176

Client incentives
3,690

 
(439
)
 
3,251

Accrued liabilities
1,358

 
(18
)
 
1,340

Deferred tax liabilities
4,930

 
(112
)
 
4,818

Other liabilities
2,801

 
(110
)
 
2,691

Equity
 
 
 
 
 
Accumulated income
13,040

 
(440
)
 
12,600
Disaggregation of Revenue The following tables disaggregate the Company’s net revenues by revenue category and by geography for the three and nine months ended June 30, 2019 and 2018:
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service revenues
$
2,405

 
$
2,196

 
$
7,164

 
$
6,595

Data processing revenues
2,662

 
2,359

 
7,564

 
6,633

International transaction revenues
1,977

 
1,830

 
5,624

 
5,248

Other revenues
342

 
229

 
968

 
688

Client incentives
(1,546
)
 
(1,374
)
 
(4,480
)
 
(3,989
)
Net revenues
$
5,840

 
$
5,240

 
$
16,840

 
$
15,175

 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
U.S.
$
2,587

 
$
2,334

 
$
7,573

 
$
6,896

International
3,253

 
2,906

 
9,267

 
8,279

Net revenues
$
5,840

 
$
5,240

 
$
16,840

 
$
15,175
v3.19.2
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalent (Tables)
 9 Months Ended
Jun. 30, 2019
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]  
Schedule of Cash and Cash Equivalents
The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:
 
June 30,
 
September 30,
 
2019
 
2018
 
2018
 
2017
 
(in millions)
Cash and cash equivalents
$
7,912

 
$
8,505

 
$
8,162

 
$
9,874

Restricted cash and restricted cash equivalents:
 
 
 
 
 
 
 
U.S. litigation escrow
902

 
1,487

 
1,491

 
1,031

Customer collateral
1,668

 
1,346

 
1,324

 
1,106

Prepaid expenses and other current assets
187

 
—

 
—

 
—

Cash, cash equivalents, restricted cash and restricted cash equivalents
$
10,669

 
$
11,338

 
$
10,977

 
$
12,011
v3.19.2
U.S. and Europe Retrospective Responsibility Plans (Tables)
 9 Months Ended
Jun. 30, 2019
Retrospective Responsibility Plan [Abstract]  
Schedule of Activities Related to Territory Covered Losses and Right to Recover for Covered Losses
The following table sets forth the activities related to VE territory covered losses in preferred stock and “right to recover for covered losses” within equity during the nine months ended June 30, 2019. VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 13—Legal Matters.
 
Preferred Stock
 
Right to Recover for Covered Losses
 
UK&I
 
Europe
 
 
(in millions)
Balance as of September 30, 2018
$
2,291

 
$
3,179

 
$
(7
)
VE territory covered losses incurred
—

 
—

 
(170
)
Recovery through conversion rate adjustment
(6
)
 
(2
)
 
8

Balance as of June 30, 2019
$
2,285

 
$
3,177

 
$
(169
)
Schedule of As-converted and Book Value of Preferred Stock Available to Recover Europe Covered Losses
The following table(1) sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders’ equity within the Company’s consolidated balance sheets as of June 30, 2019 and September 30, 2018:
 
June 30, 2019
 
September 30, 2018
 
As-Converted Value of Preferred Stock(2)
 
Book Value of Preferred Stock
 
As-Converted Value of Preferred Stock(3)
 
Book Value of Preferred Stock
 
(in millions)
UK&I preferred stock
$
5,569

 
$
2,285

 
$
4,823

 
$
2,291

Europe preferred stock
7,606

 
3,177

 
6,580

 
3,179

Total
13,175

 
5,462

 
11,403

 
5,470

Less: right to recover for covered losses
(169
)
 
(169
)
 
(7
)
 
(7
)
Total recovery for covered losses available
$
13,006

 
$
5,293

 
$
11,396

 
$
5,463

(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
(2) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of June 30, 2019; (b) 12.936 and 13.884, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of June 30, 2019, respectively; and (c) $173.55, Visa’s class A common stock closing stock price as of June 30, 2019.
(3) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2018; (b) 12.955 and 13.888, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2018, respectively; and (c) $150.09, Visa’s class A common stock closing stock price as of September 30, 2018.
v3.19.2
Fair Value Measurements and Investments (Tables)
 9 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
Fair Value Measurements
Using Inputs Considered as
 
Level 1
 
Level 2
 
June 30,
2019
 
September 30,
2018
 
June 30,
2019
 
September 30,
2018
 
(in millions)
Assets
 
 
 
 
 
 
 
Cash equivalents and restricted cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
6,275

 
$
6,252

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
$
50

 
$
1,048

Investment securities:
 
 
 
 
 
 
 
Marketable equity securities
125

 
113

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
5,484

 
5,008

U.S. Treasury securities
574

 
2,508

 
 
 
 
Other current and non-current assets:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
211

 
78

Total
$
6,974

 
$
8,873

 
$
5,745

 
$
6,134

Liabilities
 
 
 
 
 
 
 
Accrued and other liabilities:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
$
74

 
$
22

Total
$
—

 
$
—

 
$
74

 
$
22
v3.19.2
Debt (Tables)
 9 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Schedule of Debt
The Company had outstanding debt as follows:
 
June 30, 2019
 
September 30, 2018
 
Effective Interest Rate
 
(in millions, except percentages)
2.20% Senior Notes due December 2020
$
3,000

 
$
3,000

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

 
1,000

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

 
2,250

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

 
4,000

 
3.26
%
2.75% Senior Notes due September 2027
750

 
750

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

 
1,500

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

 
3,500

 
4.37
%
3.65% Senior Notes due September 2047
750

 
750

 
3.73
%
Total senior notes
16,750

 
16,750

 
 
Unamortized discounts and debt issuance costs
(111
)
 
(120
)
 
 
Hedge accounting fair value adjustments
55

 
—

 
 
Total long-term debt
$
16,694

 
$
16,630

 
 
v3.19.2
Settlement Guarantee Management (Tables)
 9 Months Ended
Jun. 30, 2019
Settlement Guarantee Management [Abstract]  
Schedule of Customer Collateral
The Company maintains and regularly reviews global settlement risk policies and procedures to manage settlement exposure, which may require clients to post collateral if certain credit standards are not met. At June 30, 2019 and September 30, 2018, the Company held collateral as follows:

June 30,
2019
 
September 30,
2018
 
(in millions)
Cash equivalents
$
1,668

 
$
1,708

Pledged securities at market value
294

 
192

Letters of credit
1,447

 
1,382

Guarantees
582

 
860

Total
$
3,991

 
$
4,142
v3.19.2
Pension and Other Postretirement Benefits (Tables)
 9 Months Ended
Jun. 30, 2019
Retirement Benefits [Abstract]  
Schedule of Pension and Other Postretirement Benefits
 
Pension Benefits
 
U.S. Plans
 
Non-U.S. Plans
 
Three Months Ended
June 30,
 
Three Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service cost
$
—

 
$
—

 
$
1

 
$
1

Interest cost
8

 
8

 
3

 
3

Expected return on plan assets
(17
)
 
(17
)
 
(5
)
 
(5
)
Settlement loss
2

 
3

 
—

 
—

Total net periodic benefit cost (income)
$
(7
)
 
$
(6
)
 
$
(1
)
 
$
(1
)

 
Pension Benefits
 
U.S. Plans
 
Non-U.S. Plans
 
Nine Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service cost
$
—

 
$
—

 
$
3

 
$
3

Interest cost
24

 
24

 
10

 
9

Expected return on plan assets
(53
)
 
(52
)
 
(14
)
 
(15
)
Settlement loss
2

 
3

 
—

 
—

Total net periodic benefit cost (income)
$
(27
)
 
$
(25
)
 
$
(1
)
 
$
(3
)
v3.19.2
Stockholders' Equity (Tables)
 9 Months Ended
Jun. 30, 2019
Stockholders' Equity Note [Abstract]  
Schedule of Stock by Class
As-converted class A common stock. The following table(1) presents number of shares of each series and class and the number of shares of class A common stock on an as-converted basis:
 
June 30, 2019
 
September 30, 2018
 
 
Shares
Outstanding
 
Conversion Rate Into 
Class A
Common Stock
 
As-converted Class A
Common
Stock(2)
 
Shares
Outstanding
 
Conversion Rate Into
Class A
Common Stock
 
As-converted Class A
Common
Stock(2)
 
 
(in millions, except conversion rates)
 
UK&I preferred stock
2

 
12.9360

 
32

(3) 
2

 
12.9550

 
32

(3) 
Europe preferred stock
3

 
13.8840

 
44

(3) 
3

 
13.8880

 
44

(3) 
Class A common stock(4)
1,729

 
—

 
1,729

 
1,768

 
—

 
1,768

 
Class B common stock
245

 
1.6298

(5) 
400

 
245

 
1.6298

(5) 
400

 
Class C common stock
12

 
4.0000

 
46

 
12

 
4.0000

 
47

 
Total
 
 
 
 
2,251

 
 
 
 
 
2,291

 

(1) 
Figures in the table may not recalculate exactly due to rounding.
(2) 
As-converted class A common stock is calculated based on unrounded numbers.
(3) 
The reduction in equivalent number of shares of class A common stock was less than one million shares during the nine months ended June 30, 2019.
(4) 
Class A common stock shares outstanding reflect repurchases settled on or before June 30, 2019 and September 30, 2018.
(5) 
The class B to class A common stock conversion rate is presented on a rounded basis. Conversion calculations for dividend payments are based on a conversion rate rounded to the tenth decimal.
Effect of VE Territory Covered Losses Recovery on the Company Repurchasing its Common Stock
The following table presents effective price per share and recovery of VE territory covered losses through conversion rate adjustments:
 
Nine Months Ended
June 30, 2019
 
Twelve Months Ended
September 30, 2018
 
Preferred Stock
 
UK&I
 
Europe
 
UK&I
 
Europe
 
(in millions, except per share data)
Effective price per share(1)
$
141.32

 
$
150.26

 
$
113.05

 
$
112.92

Recovery through conversion rate adjustment
$
6

 
$
2

 
$
35

 
$
21

(1) 
Effective price per share for the quarter is calculated using the volume-weighted average price of the Company’s class A common stock over a pricing period in accordance with the Company’s current certificates of designations for its series B and C convertible participating preferred stock. Effective price per share for the nine months ended June 30, 2019 and fiscal 2018 is calculated using the weighted-average effective prices of the respective adjustments made during the year.
Share Repurchase Program Disclosure
Common stock repurchases. The following table(1) presents share repurchases in the open market for the following periods:
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions, except per share data)
Shares repurchased in the open market(2)
13

 
14

 
44

 
47

Average repurchase price per share(3)
$
162.97

 
$
128.80

 
$
147.66

 
$
119.29

Total cost
$
2,149

 
$
1,754

 
$
6,480

 
$
5,604

(1)  
Figures in the table may not recalculate exactly due to rounding. Shares repurchased in the open market reflect repurchases settled during the three and nine months ended June 30, 2019 and 2018. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017 for nine months, respectively, and March 31, 2019 and 2018 for three months, respectively. Also, these amounts exclude repurchases traded but not yet settled on or before June 30, 2019 and 2018, respectively.
(2) 
All shares repurchased in the open market have been retired and constitute authorized but unissued shares.
(3) 
Average repurchase price per share is calculated based on unrounded numbers.
v3.19.2
Earnings Per Share (Tables)
 9 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table(1) presents earnings per share for the three months ended June 30, 2019:
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
2,379

 
1,735

 
$
1.37

 
 
$
3,101

 
2,265

(3) 
$
1.37

Class B common stock
549

 
245

 
$
2.23

 
 
548

 
245

 
$
2.23

Class C common stock
63

 
12

 
$
5.48

 
 
63

 
12

 
$
5.48

Participating securities(4)
110

 
Not presented

 
Not presented

 
 
110

 
Not presented

 
Not presented

Net income
$
3,101

 
 
 
 
 
 
 
 
 
 
 

The following table(1) presents earnings per share for the nine months ended June 30, 2019:
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
6,956

 
1,748

 
$
3.98

 
 
$
9,055

 
2,278

(3) 
$
3.97

Class B common stock
1,592

 
245

 
$
6.49

 
 
1,590

 
245

 
$
6.48

Class C common stock
186

 
12

 
$
15.92

 
 
185

 
12

 
$
15.90

Participating securities(4)
321

 
Not presented

 
Not presented

 
 
321

 
Not presented

 
Not presented

Net income
$
9,055

 
 
 
 
 
 
 
 
 
 
 
The following table(1) presents earnings per share for the three months ended June 30, 2018:
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
1,793

 
1,784

 
$
1.00

 
 
$
2,329

 
2,321

(3) 
$
1.00

Class B common stock
406

 
245

 
$
1.66

 
 
406

 
245

 
$
1.65

Class C common stock
49

 
12

 
$
4.02

 
 
49

 
12

 
$
4.01

Participating securities(4)
81

 
Not presented

 
Not presented

 
 
81

 
Not presented

 
Not presented

Net income
$
2,329

 
 
 
 
 
 
 
 
 
 
 
The following table(1) presents earnings per share for the nine months ended June 30, 2018:
 
Basic Earnings Per Share
 
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
 
 
Income
Allocation
(A)(2)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)
Class A common stock
$
5,746

 
1,798

 
$
3.20

 
 
$
7,456

 
2,337

(3) 
$
3.19

Class B common stock
1,293

 
245

 
$
5.27

 
 
1,291

 
245

 
$
5.26

Class C common stock
159

 
12

 
$
12.78

 
 
158

 
12

 
$
12.76

Participating securities(4)
258

 
Not presented

 
Not presented

 
 
259

 
Not presented

 
Not presented

Net income
$
7,456

 
 
 
 
 
 
 
 
 
 
 

(1) 
Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.
(2) 
Net income is allocated based on proportional ownership on an as-converted basis. The weighted-average number of shares of as-converted class B common stock used in the income allocation was 400 million for the three and nine months ended June 30, 2019, and 405 million for the three and nine months ended June 30, 2018. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 46 million and 47 million for the three and nine months ended June 30, 2019, respectively, and 49 million and 50 million for the three and nine months ended June 30, 2018, respectively. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three and nine months ended June 30, 2019 and 2018. The weighted-average number of shares of preferred stock included within participating securities was 44 million of as-converted Europe preferred stock for the three and nine months ended June 30, 2019 and 2018.
(3) 
Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes approximately 3 million common stock equivalents for the three and nine months ended June 30, 2019 and 2018, because their effect would have been dilutive. The computation excludes less than 1 million of common stock equivalents for the three and nine months ended June 30, 2019 and 2018, because their effect would have been anti-dilutive.
(4) 
Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company’s UK&I and Europe preferred stock, restricted stock awards, restricted stock units and earned performance-based shares. Participating securities’ income is allocated based on the weighted-average number of shares of as-converted stock.
v3.19.2
Share-based Compensation (Tables)
 9 Months Ended
Jun. 30, 2019
Share-based Compensation [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan, or the EIP, during the nine months ended June 30, 2019:
 
Granted
 
Weighted-Average
Grant Date Fair
Value
 
Weighted-Average
Exercise Price
Non-qualified stock options
1,109,645

 
$
25.89

 
$
134.76

Restricted stock units (“RSUs”)
2,706,680

 
$
136.21

 
 
Performance-based shares(1)
540,538

 
$
153.42

 
 
(1)  
Represents the maximum number of performance-based shares which could be earned.
v3.19.2
Legal Matters (Tables)
 9 Months Ended
Jun. 30, 2019
Loss Contingencies [Line Items]  
Schedule of Loss Contingencies by Contingency
The following table summarizes the activity related to accrued litigation:
 
Nine Months Ended
June 30,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
1,434

 
$
982

Provision for uncovered legal matters
37

 
—

Provision for covered legal matters
165

 
601

Payments for legal matters
(780
)
 
(155
)
Balance at end of period
$
856

 
$
1,428
U.S. Covered Litigation  
Loss Contingencies [Line Items]  
Schedule of Loss Contingencies by Contingency
The following table summarizes the activity related to U.S. covered litigation:
 
Nine Months Ended
June 30,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
1,428

 
$
978

Provision for interchange multidistrict litigation
—

 
600

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

 
$
1,428
VE Territory Covered Litigation  
Loss Contingencies [Line Items]  
Schedule of Loss Contingencies by Contingency
The following table summarizes the activity related to VE territory covered litigation:
 
Nine Months Ended
June 30,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
—

 
$
1

Accrual for VE territory covered litigation
165

 
1

Payments for VE territory covered litigation
(156
)
 
(2
)
Balance at end of period
$
9

 
$
—
v3.19.2
Summary of Significant Accounting Policies (Details)
Jun. 30, 2019
country
Accounting Policies [Abstract]  
Number of countries in which entity operates (more than) 200
v3.19.2
Summary of Significant Accounting Policies - Adoption of 606 (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Oct. 01, 2018
Sep. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Current portion of client incentives $ 690 $ 539 $ 340
Client incentives 1,854 1,152 538
Client incentives 3,690 3,075 2,834
Accrued liabilities 1,358 1,166 1,160
Deferred tax liabilities 4,930 4,726 4,618
Other liabilities 2,801 2,724 2,666
Accumulated income 13,040 11,718 $ 11,318
Impact of the New Revenue Standard | Accounting Standards Update 2014-09      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Current portion of client incentives (282) 199  
Client incentives (811) 614  
Client incentives (439) 241  
Accrued liabilities (18) 6  
Deferred tax liabilities (112) 108  
Other liabilities (110) 58  
Accumulated income $ (440) $ 400  
v3.19.2
Revenues - Adoption of New Revenue Standard (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Oct. 01, 2018
Sep. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Net revenues $ 5,840 $ 5,240 $ 16,840 $ 15,175    
Operating Expenses            
Marketing 282 240 799 724    
Professional fees 113 112 305 312    
General and administrative 315 230 855 688    
Total operating expenses 1,932 2,355 5,574 5,627    
Operating income 3,908 2,885 11,266 9,548    
Income before income taxes 3,866 2,812 11,173 9,268    
Income tax provision 765 483 2,118 1,812    
Net income 3,101 $ 2,329 9,055 $ 7,456    
Assets            
Current portion of client incentives 690   690   $ 539 $ 340
Client incentives 1,854   1,854   1,152 538
Liabilities            
Accounts payable 150   150     183
Client incentives 3,690   3,690   3,075 2,834
Accrued liabilities 1,358   1,358   1,166 1,160
Deferred tax liabilities 4,930   4,930   4,726 4,618
Other liabilities 2,801   2,801   2,724 2,666
Equity            
Accumulated income 13,040   13,040   11,718 $ 11,318
Impact of the New Revenue Standard | Accounting Standards Update 2014-09            
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Net revenues (88)   (179)      
Operating Expenses            
Marketing (31)   (100)      
Professional fees (5)   (12)      
General and administrative (11)   (21)      
Total operating expenses (47)   (133)      
Operating income (41)   (46)      
Income before income taxes (41)   (46)      
Income tax provision (8)   (6)      
Net income (33)   (40)      
Assets            
Current portion of client incentives (282)   (282)   199  
Client incentives (811)   (811)   614  
Liabilities            
Accounts payable 26   26      
Client incentives (439)   (439)   241  
Accrued liabilities (18)   (18)   6  
Deferred tax liabilities (112)   (112)   108  
Other liabilities (110)   (110)   58  
Equity            
Accumulated income (440)   (440)   $ 400  
Results Under Prior Revenue Standard            
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Net revenues 5,752   16,661      
Operating Expenses            
Marketing 251   699      
Professional fees 108   293      
General and administrative 304   834      
Total operating expenses 1,885   5,441      
Operating income 3,867   11,220      
Income before income taxes 3,825   11,127      
Income tax provision 757   2,112      
Net income 3,068   9,015      
Assets            
Current portion of client incentives 408   408      
Client incentives 1,043   1,043      
Liabilities            
Accounts payable 176   176      
Client incentives 3,251   3,251      
Accrued liabilities 1,340   1,340      
Deferred tax liabilities 4,818   4,818      
Other liabilities 2,691   2,691      
Equity            
Accumulated income $ 12,600   $ 12,600      
v3.19.2
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Disaggregation of Revenue [Line Items]        
Net revenues $ 5,840 $ 5,240 $ 16,840 $ 15,175
U.S.        
Disaggregation of Revenue [Line Items]        
Net revenues 2,587 2,334 7,573 6,896
International        
Disaggregation of Revenue [Line Items]        
Net revenues 3,253 2,906 9,267 8,279
Service revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 2,405 2,196 7,164 6,595
Data processing revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 2,662 2,359 7,564 6,633
International transaction revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 1,977 1,830 5,624 5,248
Other revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 342 229 968 688
Client incentives        
Disaggregation of Revenue [Line Items]        
Net revenues $ (1,546) $ (1,374) $ (4,480) $ (3,989)
v3.19.2
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalent (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Sep. 30, 2018
Jun. 30, 2018
Sep. 30, 2017
Restricted Cash and Cash Equivalents Items [Line Items]        
Cash and cash equivalents $ 7,912 $ 8,162 $ 8,505 $ 9,874
Cash, cash equivalents, restricted cash and restricted cash equivalents 10,669 10,977 11,338 12,011
U.S. litigation escrow        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents 902 1,491 1,487 1,031
Customer collateral        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents 1,668 1,324 1,346 1,106
Prepaid expenses and other current assets        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents $ 187 $ 0 $ 0 $ 0
v3.19.2
U.S. and Europe Retrospective Responsibility Plans - Narrative (Details) - USD ($)
$ in Millions
 9 Months Ended
Jun. 30, 2019
Sep. 30, 2018
Jun. 30, 2018
Sep. 30, 2017
Restricted Cash and Cash Equivalents Items [Line Items]        
Deposits To Litigation Escrow Account $ (600)      
U.S. litigation escrow        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents $ 902 $ 1,491 $ 1,487 $ 1,031
v3.19.2
U.S. and Europe Retrospective Responsibility Plans - Preferred Stock Rollforward (Details)
€ in Millions, $ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Jun. 30, 2019
EUR (€)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Sep. 30, 2018
USD ($)
Class of Stock [Line Items]            
VE territory covered loss, maximum amount of loss to allow adjustment of conversion rate during six-month period | € € 20          
Preferred Stock and Right to Recover for Covered Losses [Roll Forward]            
Preferred stock, beginning       $ 5,470    
Right to recover for covered losses, beginning       7    
VE territory covered losses incurred   $ 8 $ 5 170 $ 9  
Preferred stock, ending   5,462   5,462   $ 5,470
Right to recover for covered losses, ending   $ 169   169   7
U.K.& I preferred stock            
Class of Stock [Line Items]            
Recovery through conversion rate adjustment       $ (6)   $ (35)
Preferred stock, conversion ratio 12.9360 12.9360   12.9360   12.9550
Preferred Stock and Right to Recover for Covered Losses [Roll Forward]            
Preferred stock, beginning       $ 2,291    
VE territory covered losses incurred       0    
Recovery through conversion rate adjustment       (6)   $ (35)
Preferred stock, ending   $ 2,285   2,285   2,291
Europe preferred stock            
Class of Stock [Line Items]            
Recovery through conversion rate adjustment       $ (2)   $ (21)
Preferred stock, conversion ratio 13.884 13.884   13.884   13.8880
Preferred Stock and Right to Recover for Covered Losses [Roll Forward]            
Preferred stock, beginning       $ 3,179    
VE territory covered losses incurred       0    
Recovery through conversion rate adjustment       (2)   $ (21)
Preferred stock, ending   $ 3,177   3,177   $ 3,179
Preferred Stock            
Class of Stock [Line Items]            
Recovery through conversion rate adjustment   2 6 8 56  
Preferred Stock and Right to Recover for Covered Losses [Roll Forward]            
Recovery through conversion rate adjustment   2 6 8 56  
Right to Recover for Covered Losses            
Class of Stock [Line Items]            
Recovery through conversion rate adjustment   (2) (6) (8) (56)  
Preferred Stock and Right to Recover for Covered Losses [Roll Forward]            
VE territory covered losses incurred   8 5 170 9  
Recovery through conversion rate adjustment   $ (2) $ (6) $ (8) $ (56)  
v3.19.2
U.S. and Europe Retrospective Responsibility Plans - Preferred Stock (Details)
$ / shares in Units, shares in Millions, $ in Millions
Jun. 30, 2019
USD ($)
$ / shares
shares
Sep. 30, 2018
USD ($)
$ / shares
shares
Class of Stock [Line Items]    
As-converted value of preferred stock $ 13,175 $ 11,403
Book Value of Preferred stock 5,462 5,470
Right to recover for covered losses (169) (7)
Total recovery for covered losses available, as converted 13,006 11,396
Total recovery for covered losses available, book value $ 5,293 $ 5,463
Share Price (in dollars per share) | $ / shares $ 173.55 $ 150.09
U.K.& I preferred stock    
Class of Stock [Line Items]    
As-converted value of preferred stock $ 5,569 $ 4,823
Book Value of Preferred stock $ 2,285 $ 2,291
Preferred stock, shares outstanding | shares 2 2
Preferred stock, conversion ratio 12.9360 12.9550
Europe preferred stock    
Class of Stock [Line Items]    
As-converted value of preferred stock $ 7,606 $ 6,580
Book Value of Preferred stock $ 3,177 $ 3,179
Preferred stock, shares outstanding | shares 3 3
Preferred stock, conversion ratio 13.884 13.8880
v3.19.2
Fair Value Measurements and Investments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
Jun. 30, 2019
Sep. 30, 2018
Assets    
U.S. securities $ 6,100,000,000 $ 7,500,000,000
Liabilities    
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount 0  
Level 1 | Fair Value, Measurements, Recurring    
Assets    
Total 6,974,000,000 8,873,000,000
Liabilities    
Total 0 0
Level 1 | Marketable equity securities | Fair Value, Measurements, Recurring    
Assets    
Marketable equity securities 125,000,000 113,000,000
Level 1 | U.S. Treasury securities | Fair Value, Measurements, Recurring    
Assets    
U.S. securities 574,000,000 2,508,000,000
Level 2 | Fair Value, Measurements, Recurring    
Assets    
Total 5,745,000,000 6,134,000,000
Liabilities    
Total 74,000,000 22,000,000
Level 2 | Derivative instruments | Fair Value, Measurements, Recurring    
Assets    
Derivative instruments 211,000,000 78,000,000
Liabilities    
Derivative instruments 74,000,000 22,000,000
Level 2 | U.S. government-sponsored debt securities | Fair Value, Measurements, Recurring    
Assets    
U.S. securities 5,484,000,000 5,008,000,000
Money market funds | Level 1 | Fair Value, Measurements, Recurring    
Assets    
Cash equivalents and restricted cash equivalents: 6,275,000,000 6,252,000,000
U.S. government-sponsored debt securities | Level 2 | Fair Value, Measurements, Recurring    
Assets    
Cash equivalents and restricted cash equivalents: $ 50,000,000 $ 1,048,000,000
v3.19.2
Fair Value Measurements and Investments - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
U.S. securities $ 6,100 $ 6,100 $ 7,500
Non-marketable equity investments 679 679 137
Upward adjustments 14 80  
Downward adjustments 6 6  
Net realized gains on equity securities sold 1 16  
Net unrealized gains on equity securities held 10 $ 69  
Minimum      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Available-for-sale investment securities, stated maturities   1 year  
Maximum      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Available-for-sale investment securities, stated maturities   5 years  
Senior Notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Carrying value of long-term debt 16,694 $ 16,694 16,630
Estimated Fair Value | Senior Notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Estimated fair value of long-term deb $ 18,000 $ 18,000 $ 16,600
3.15% Senior Notes due December 2025 | Senior Notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Stated interest rate 3.15% 3.15%  
v3.19.2
Debt - Summary of Debt (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Sep. 30, 2018
Debt Instrument [Line Items]    
Total senior notes $ 16,750 $ 16,750
Unamortized discounts and debt issuance costs (111) (120)
Hedge accounting fair value adjustments 55 0
Senior Notes    
Debt Instrument [Line Items]    
Total long-term debt 16,694 16,630
Senior Notes | 2.20% Senior Notes due December 2020    
Debt Instrument [Line Items]    
Total senior notes $ 3,000 3,000
Effective interest rate (percent) 2.30%  
Stated interest rate 2.20%  
Senior Notes | 2.15% Senior Notes due September 2022    
Debt Instrument [Line Items]    
Total senior notes $ 1,000 1,000
Effective interest rate (percent) 2.30%  
Stated interest rate 2.15%  
Senior Notes | 2.80% Senior Notes due December 2022    
Debt Instrument [Line Items]    
Total senior notes $ 2,250 2,250
Effective interest rate (percent) 2.89%  
Stated interest rate 2.80%  
Senior Notes | 3.15% Senior Notes due December 2025    
Debt Instrument [Line Items]    
Total senior notes $ 4,000 4,000
Effective interest rate (percent) 3.26%  
Stated interest rate 3.15%  
Senior Notes | 2.75% Senior Notes due September 2027    
Debt Instrument [Line Items]    
Total senior notes $ 750 750
Effective interest rate (percent) 2.91%  
Stated interest rate 2.75%  
Senior Notes | 4.15% Senior Notes due December 2035    
Debt Instrument [Line Items]    
Total senior notes $ 1,500 1,500
Effective interest rate (percent) 4.23%  
Stated interest rate 4.15%  
Senior Notes | 4.30% Senior Notes due December 2045    
Debt Instrument [Line Items]    
Total senior notes $ 3,500 3,500
Effective interest rate (percent) 4.37%  
Stated interest rate 4.30%  
Senior Notes | 3.65% Senior Notes due September 2047    
Debt Instrument [Line Items]    
Total senior notes $ 750 $ 750
Effective interest rate (percent) 3.73%  
Stated interest rate 3.65%  
v3.19.2
Debt - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended
Jul. 25, 2019
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Senior Notes          
Debt Instrument [Line Items]          
Interest expense   $ 106,000,000 $ 137,000,000 $ 350,000,000 $ 413,000,000
Amended And Restated Credit Agreement | Subsequent Event | Revolving Credit Facility | Line of Credit          
Debt Instrument [Line Items]          
Credit agreement term 5 years        
Borrowings $ 5,000,000,000.0        
v3.19.2
Settlement Guarantee Management - Additional Information (Details)
$ in Billions
 9 Months Ended
Jun. 30, 2019
USD ($)
Settlement Guarantee Management [Abstract]  
Maximum Settlement Exposure $ 92.0
Average Daily Settlement Exposure $ 56.4
v3.19.2
Settlement Guarantee Management - Collateral (Detail) - USD ($)
$ in Millions
Jun. 30, 2019
Sep. 30, 2018
Settlement Guarantee Management [Abstract]    
Cash equivalents $ 1,668 $ 1,708
Pledged securities at market value 294 192
Letters of credit 1,447 1,382
Guarantees 582 860
Total $ 3,991 $ 4,142
v3.19.2
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - Pension Benefits - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
U.S.        
Defined Benefit Plan Disclosure [Line Items]        
Service cost $ 0 $ 0 $ 0 $ 0
Interest cost 8 8 24 24
Expected return on plan assets (17) (17) (53) (52)
Settlement loss 2 3 2 3
Total net periodic benefit cost (income) (7) (6) (27) (25)
Non-U.S. Plans        
Defined Benefit Plan Disclosure [Line Items]        
Service cost 1 1 3 3
Interest cost 3 3 10 9
Expected return on plan assets (5) (5) (14) (15)
Settlement loss 0 0 0 0
Total net periodic benefit cost (income) $ (1) $ (1) $ (1) $ (3)
v3.19.2
Stockholders' Equity - Number of Shares of Class A Common Shares Outstanding on an As-Converted Basis (Detail)
shares in Millions
Jun. 30, 2019
shares
Sep. 30, 2018
shares
Schedule of Common Stock as Converted [Line Items]    
As-converted Class A Common Stock (in shares) 2,251 2,291
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 12.9360 12.9550
As-converted Class A Common Stock (in shares) 32 32
Europe preferred stock    
Schedule of Common Stock as Converted [Line Items]    
Preferred stock, shares outstanding 3 3
Preferred stock, conversion rate into Class A Common Stock 13.884 13.8880
As-converted Class A Common Stock (in shares) 44 44
Class A common stock    
Schedule of Common Stock as Converted [Line Items]    
Common stock, shares outstanding 1,729 1,768
As-converted Class A Common Stock (in shares) 1,729 1,768
Class B common stock    
Schedule of Common Stock as Converted [Line Items]    
Common stock, shares outstanding 245 245
Common stock, conversion rate 1.6298 1.6298
As-converted Class A Common Stock (in shares) 400 400
Class C common stock    
Schedule of Common Stock as Converted [Line Items]    
Common stock, shares outstanding 12 12
Common stock, conversion rate 4.0000 4.0000
As-converted Class A Common Stock (in shares) 46 47
v3.19.2
Stockholders' Equity - Effect of VE Territory Covered Losses Through Coversion Rate Adjustments (Details) - USD ($)
$ / shares in Units, $ in Millions
 9 Months Ended 12 Months Ended
Jun. 30, 2019
Sep. 30, 2018
U.K.& I preferred stock    
Conversion of Stock [Line Items]    
Effective price per share (in USD per share) $ 141.32 $ 113.05
Recovery through conversion rate adjustment $ 6 $ 35
Europe preferred stock    
Conversion of Stock [Line Items]    
Effective price per share (in USD per share) $ 150.26 $ 112.92
Recovery through conversion rate adjustment $ 2 $ 21
v3.19.2
Stockholders' Equity - Share Repurchases in the Open Market (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Equity, Class of Treasury Stock [Line Items]        
Total cost $ 2,149 $ 1,754 $ 6,480 $ 5,604
Class A common stock        
Equity, Class of Treasury Stock [Line Items]        
Shares repurchased in the open market 13 14 44 47
Average repurchase price per share $ 162.97 $ 128.80 $ 147.66 $ 119.29
Total cost $ 2,149 $ 1,754 $ 6,480 $ 5,604
v3.19.2
Stockholders' Equity - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Jul. 15, 2019
Jan. 31, 2019
Stockholders Equity Note [Line Items]            
Additional share repurchase program           $ 8,500
January 2019 share repurchase program remaining authorized funds $ 6,200   $ 6,200      
Cash dividends declared and paid, at a quarterly amount per Class A share $ 565 $ 487 $ 1,706 $ 1,435    
Subsequent Event | Class A common stock            
Stockholders Equity Note [Line Items]            
Quarterly cash dividend (in dollars per share)         $ 0.25  
v3.19.2
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Net income $ 3,101 $ 2,329 $ 9,055 $ 7,456
Class A common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic $ 2,379 $ 1,793 $ 6,956 $ 5,746
Weighted- Average Shares Outstanding - Basic (in shares) 1,735 1,784 1,748 1,798
Earnings per Share - Basic (in dollars per share) $ 1.37 $ 1.00 $ 3.98 $ 3.20
Income Allocation - Diluted $ 3,101 $ 2,329 $ 9,055 $ 7,456
Weighted- Average Shares Outstanding - Diluted (in shares) 2,265 2,321 2,278 2,337
Earnings per Share - Diluted (in dollars per share) $ 1.37 $ 1.00 $ 3.97 $ 3.19
Class B common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic $ 549 $ 406 $ 1,592 $ 1,293
Weighted- Average Shares Outstanding - Basic (in shares) 245 245 245 245
Earnings per Share - Basic (in dollars per share) $ 2.23 $ 1.66 $ 6.49 $ 5.27
Income Allocation - Diluted $ 548 $ 406 $ 1,590 $ 1,291
Weighted- Average Shares Outstanding - Diluted (in shares) 245 245 245 245
Earnings per Share - Diluted (in dollars per share) $ 2.23 $ 1.65 $ 6.48 $ 5.26
Class C common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic $ 63 $ 49 $ 186 $ 159
Weighted- Average Shares Outstanding - Basic (in shares) 12 12 12 12
Earnings per Share - Basic (in dollars per share) $ 5.48 $ 4.02 $ 15.92 $ 12.78
Income Allocation - Diluted $ 63 $ 49 $ 185 $ 158
Weighted- Average Shares Outstanding - Diluted (in shares) 12 12 12 12
Earnings per Share - Diluted (in dollars per share) $ 5.48 $ 4.01 $ 15.90 $ 12.76
Participating securities        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic $ 110 $ 81 $ 321 $ 258
Income Allocation - Diluted $ 110 $ 81 $ 321 $ 259
v3.19.2
Earnings Per Share - Additional Information (Detail) - shares
shares in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Common stock equivalents included in the computation of diluted shares outstanding 3 3 3 3
Common stock equivalents excluded from computation of average dilutive shares outstanding(less than 1 million for three months ended June 30,2018) 1 1 1 1
Class B common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation 400 405 400 405
Class C common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation 46 49 47 50
U.K.& I preferred stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation 32 32 32 32
Europe preferred stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation 44 44 44 44
v3.19.2
Share-based Compensation - Awards Granted to Company Employees and Non-employee Directors Under the 2007 Equity Incentive Compensation Plan (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Non-qualified stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     1,109,645  
Weighted-Average Grant Date Fair Value (in USD per share)     $ 25.89  
Weighted-Average Exercise Price (in USD per share)     $ 134.76  
Restricted stock units (“RSUs”)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     2,706,680  
Weighted-Average Grant Date Fair Value (in USD per share)     $ 136.21  
Performance-bases shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     540,538  
Weighted-Average Grant Date Fair Value (in USD per share)     $ 153.42  
Equity Incentive Compensation Plan, 2007        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation cost $ 106 $ 85 $ 307 $ 231
v3.19.2
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]            
Effective income tax rate reconciliation, percent 20.00% 17.00%     19.00% 20.00%
Federal statutory income tax rate, percent           24.50%
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount     $ 80     $ 81
Tax cuts and jobs act of 2017 deferred tax liability, provisional income tax (expense) benefit       $ 1,100    
Tax cuts and jobs act of 2017 transition tax accumulated foreign earnings, provisional income tax expense (benefit)       $ 1,100    
Increase in unrecognized tax benefits $ 241       $ 387  
Effective income tax rate reconciliation Unrecognized Tax Benefits that would Favorably Impact Effective Tax Rate 51       134  
Accrued interest related to uncertain tax positions $ 19       $ 51  
v3.19.2
Legal Matters - Accrued Litigation for Both Covered and Non-Covered Litigation (Detail)
$ in Millions
 9 Months Ended 73 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jul. 26, 2019
merchant
Dec. 04, 2018
Loss Contingency Accrual [Roll Forward]        
Balance at beginning of period $ 1,434 $ 982    
Provision for legal matters 165 601    
Balance at end of period 856 1,428    
Interchange Rate, Card-Not-Present, Credit       0.0150
Interchange Rate, Card-Not-Present, Debit       0.0115
Interchange Rate, Card Present, Credit       0.0030
Interchange Rate, Card Present, Debit       0.0020
Unsettled        
Loss Contingency Accrual [Roll Forward]        
Provision for legal matters 37 0    
Settled Litigation        
Loss Contingency Accrual [Roll Forward]        
Payments for legal matters (780) (155)    
U.S. Covered Litigation        
Loss Contingency Accrual [Roll Forward]        
Balance at beginning of period 1,428 978    
Balance at end of period 828 1,428    
U.S. Covered Litigation | Interchange Multidistrict Litigation        
Loss Contingency Accrual [Roll Forward]        
Provision for legal matters 0 600    
U.S. Covered Litigation | Settled Litigation        
Loss Contingency Accrual [Roll Forward]        
Payments for legal matters (600) (150)    
VE Territory Covered Litigation        
Loss Contingency Accrual [Roll Forward]        
Balance at beginning of period 0 1    
Provision for legal matters 165 1    
Balance at end of period 9 0    
VE Territory Covered Litigation | Settled Litigation        
Loss Contingency Accrual [Roll Forward]        
Payments for legal matters $ (156) $ (2)    
Subsequent Event | U.K. Merchant Litigation        
Loss Contingency Accrual [Roll Forward]        
Number of plaintiffs | merchant     500  
Number of claims settled | merchant     100  
Merchants with outstanding claims | merchant     350  
Subsequent Event | Threatened Litigation | U.K. Merchant Litigation        
Loss Contingency Accrual [Roll Forward]        
Number of plaintiffs | merchant     30