Pension, Postretirement and Other Benefits (Tables)
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12 Months Ended |
Sep. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] |
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Change in Benefit Obligation |
Reconciliation of pension benefit obligations, plan assets, funded status and amounts recognized in the Company’s consolidated balance sheets: | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | | September 30, | | September 30, | | 2018 | | 2017 | | 2018 | | 2017 | | (in millions) | Change in Pension Benefit Obligation: | | | | | | | | Benefit obligation—beginning of fiscal year | $ | 913 |
| | $ | 1,072 |
| | $ | 433 |
| | $ | 474 |
| Service cost | — |
| | — |
| | 4 |
| | 6 |
| Interest cost | 32 |
| | 36 |
| | 12 |
| | 11 |
| Actuarial loss (gain) | (38 | ) | | (58 | ) | | 24 |
| | (52 | ) | Benefit payments | (63 | ) | | (137 | ) | | (9 | ) | | (14 | ) | Foreign currency exchange rate changes | — |
| | — |
| | (12 | ) | | 8 |
| Benefit obligation—end of fiscal year | $ | 844 |
| | $ | 913 |
| | $ | 452 |
| | $ | 433 |
| Accumulated benefit obligation | $ | 844 |
| | $ | 913 |
| | $ | 452 |
| | $ | 433 |
| Change in Plan Assets: | | | | | | | | Fair value of plan assets—beginning of fiscal year | $ | 1,074 |
| | $ | 1,077 |
| | $ | 433 |
| | $ | 415 |
| Actual return on plan assets | 78 |
| | 125 |
| | 13 |
| | 17 |
| Company contribution | 1 |
| | 9 |
| | 11 |
| | 5 |
| Benefit payments | (63 | ) | | (137 | ) | | (9 | ) | | (14 | ) | Foreign currency exchange rate changes | — |
| | — |
| | (12 | ) | | 10 |
| Fair value of plan assets—end of fiscal year | $ | 1,090 |
| | $ | 1,074 |
| | $ | 436 |
| | $ | 433 |
| Funded status at end of fiscal year | $ | 246 |
| | $ | 161 |
| | $ | (16 | ) | | $ | — |
| Recognized in Consolidated Balance Sheets: | | | | | | | | Non-current asset | $ | 252 |
| | $ | 168 |
| | $ | — |
| | $ | 5 |
| Current liability | (1 | ) | | (1 | ) | | (10 | ) | | (5 | ) | Non-current liability | (5 | ) | | (6 | ) | | (6 | ) | | — |
| Funded status at end of fiscal year | $ | 246 |
| | $ | 161 |
| | $ | (16 | ) | | $ | — |
|
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Amounts recognized in accumulated other comprehensive income before tax |
Amounts recognized in accumulated other comprehensive income before tax: | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | | September 30, | | September 30, | | 2018 | | 2017 | | 2018 | | 2017 | | (in millions) | Net actuarial loss | $ | 47 |
| | $ | 97 |
| | $ | 39 |
| | $ | 9 |
|
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Benefit obligations in excess of plan assets related to the Company's U.S. non-qualified plan and the non-U.S. pension plans |
Benefit obligations in excess of plan assets related to the Company’s U.S. non-qualified plan and the non-U.S. pension plans(1) : | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | September 30, | | September 30, | | 2018 | | 2017 | | 2018 | | 2017 | | (in millions) | Accumulated benefit obligation in excess of plan assets | | | | | | | | Accumulated benefit obligation—end of year | $ | (6 | ) | | $ | (7 | ) | | $ | (452 | ) | | $ | (5 | ) | Fair value of plan assets—end of year | $ | — |
| | $ | — |
| | $ | 436 |
| | $ | — |
| Projected benefit obligation in excess of plan assets | | | | | | | | Benefit obligation—end of year | $ | (6 | ) | | $ | (7 | ) | | $ | (452 | ) | | $ | (5 | ) | Fair value of plan assets—end of year | $ | — |
| | $ | — |
| | $ | 436 |
| | $ | — |
|
|
Net periodic pension and other postretirement plan cost |
Net periodic pension cost: | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans(1) | | For the Years Ended September 30, | | 2018 | | 2017 | | 2016 | | 2018 | | 2017 | | 2016 | | (in millions) | Service cost | $ | — |
| | $ | — |
| | $ | 13 |
| | $ | 4 |
| | $ | 6 |
| | $ | 1 |
| Interest cost | 32 |
| | 36 |
| | 40 |
| | 12 |
| | 11 |
| | 3 |
| Expected return on assets | (70 | ) | | (70 | ) | | (69 | ) | | (20 | ) | | (16 | ) | | (4 | ) | Amortization of prior service credit | — |
| | — |
| | (1 | ) | | — |
| | — |
| | — |
| Amortization of actuarial loss | — |
| | 15 |
| | 7 |
| | — |
| | 2 |
| | — |
| Curtailment gain | — |
| | — |
| | (8 | ) | | — |
| | — |
| | — |
| Settlement loss | 3 |
| | 15 |
| | 13 |
| | — |
| | — |
| | — |
| Total net periodic benefit cost | $ | (35 | ) | | $ | (4 | ) | | $ | (5 | ) | | $ | (4 | ) | | $ | 3 |
| | $ | — |
|
| | (1) | For fiscal 2016, the amounts represent the Visa Europe plans’ net pension benefit cost recognized from the Closing through September 30, 2016. |
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Other changes in plan assets and benefit obligations recognized in other comprehensive income |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | | For the Years Ended September 30, | 2018 | | 2017 | | 2016 | | 2018 | | 2017 | | 2016 | | (in millions) | Current year actuarial loss (gain) | $ | (47 | ) | | $ | (113 | ) | | $ | 30 |
| | $ | 30 |
| | $ | (53 | ) | | $ | 66 |
| Amortization of actuarial (loss) gain | (3 | ) | | (30 | ) | | (20 | ) | | — |
| | (2 | ) | | — |
| Amortization of prior service credit | — |
| | — |
| | 9 |
| | — |
| | — |
| | — |
| Total recognized in other comprehensive income | $ | (50 | ) | | $ | (143 | ) | | $ | 19 |
| | $ | 30 |
| | $ | (55 | ) | | $ | 66 |
| Total recognized in net periodic benefit cost and other comprehensive income | $ | (85 | ) | | $ | (147 | ) | | $ | 14 |
| | $ | 26 |
| | $ | (52 | ) | | $ | 66 |
|
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Weighted Average Actuarial Assumptions |
Weighted-Average Actuarial Assumptions: | | | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | | For the Years Ended September 30, | | 2018 | | 2017 | | 2016 | | 2018 | | 2017 | | 2016 | Discount rate(1) for benefit obligation: | | | | | | | | | | | | Pension | 4.23 | % | | 3.84 | % | | 3.62 | % | | 2.90 | % | | 2.70 | % | | 2.40 | % | Discount rate for net periodic benefit cost: | | | | | | | | | | | | Pension | 3.84 | % | | 3.62 | % | | 4.33 | % | | 2.70 | % | | 2.40 | % | | 3.10 | % | Expected long-term rate of return on plan assets(2) | 7.00 | % | | 7.00 | % | | 7.00 | % | | 4.25 | % | | 4.50 | % | | 3.92 | % | Rate of increase(3) in compensation levels for: | | | | | | | | | | | | Benefit obligation | NA |
| | NA |
| | NA |
| | 3.20 | % | | 3.20 | % | | 3.20 | % | Net periodic benefit cost | NA |
| | NA |
| | NA |
| | 3.20 | % | | 3.20 | % | | 3.00 | % |
| | (1) | Represents a single weighted-average discount rate derived based on a cash flow matching analysis, with the projected benefit payments matching spot rates from a yield curve developed from high-quality corporate bonds. |
| | (2) | Primarily based on the targeted allocation, and evaluated for reasonableness by considering such factors as: (i) actual return on plan assets; (ii) historical rates of return on various asset classes in the portfolio; (iii) projections of returns on various asset classes; and (iv) current and prospective capital market conditions and economic forecasts. |
| | (3) | This assumption is not applicable for the U.S. plans due to the amendment of the U.S. qualified defined benefit pension plan in October 2015, which discontinued the employer provided credits effective after December 31, 2015. |
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Employer contribution cash flows |
Cash Flows | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | Actual employer contributions | (in millions) | 2018 | $ | 1 |
| | $ | 11 |
| 2017 | 9 |
| | 5 |
| Expected employer contributions | | | | 2019 | 1 |
| | 10 |
| Expected benefit payments | | | | 2019 | 150 |
| | 5 |
| 2020 | 73 |
| | 5 |
| 2021 | 70 |
| | 5 |
| 2022 | 67 |
| | 5 |
| 2023 | 64 |
| | 5 |
| 2024-2028 | 284 |
| | 28 |
|
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U.S. Plans |
|
Defined Benefit Plan Disclosure [Line Items] |
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Pension plan investments at fair value |
The following tables set forth by level, within the fair value hierarchy, the pension plan’s investments at fair value as of September 30, 2018 and 2017, including the impact of transactions that were not settled at the end of September: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Plans | | Fair Value Measurements at September 30 Using Inputs Considered as | | Level 1 | | Level 2 | | Level 3 | | Total | | 2018 | | 2017 | | 2018 | | 2017 | | 2018 | | 2017 | | 2018 | | 2017 | | (in millions) | Cash equivalents | $ | 65 |
| | $ | 31 |
| | | | | | | | | | $ | 65 |
| | $ | 31 |
| Collective investment funds | | | | | 571 |
| | 540 |
| | | | | | 571 |
| | 540 |
| Corporate debt securities | | | | | 187 |
| | 197 |
| | | | | | 187 |
| | 197 |
| U.S. government-sponsored debt securities | | | | | 30 |
| | 47 |
| | | | | | 30 |
| | 47 |
| U.S. Treasury securities | 62 |
| | 75 |
| | | | | | | | | | 62 |
| | 75 |
| Asset-backed securities | | | | | | | | | 34 |
| | 39 |
| | 34 |
| | 39 |
| Equity securities | 141 |
| | 145 |
| | | | | | | | | | 141 |
| | 145 |
| Total | $ | 268 |
| | $ | 251 |
| | $ | 788 |
| | $ | 784 |
| | $ | 34 |
| | $ | 39 |
| | $ | 1,090 |
| | $ | 1,074 |
|
|
Non-U.S. Plans |
|
Defined Benefit Plan Disclosure [Line Items] |
|
Pension plan investments at fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-U.S. Plans | | Fair Value Measurements at September 30 Using Inputs Considered as | | Level 1 | | Level 2 | | Level 3 | | Total | | 2018 | | 2017 | | 2018 | | 2017 | | 2018 | | 2017 | | 2018 | | 2017 | | (in millions) | Cash equivalents | $ | 6 |
| | $ | 1 |
| | | | | | | | | | $ | 6 |
| | $ | 1 |
| Corporate debt securities | | | | | — |
| | 39 |
| | | | | | — |
| | 39 |
| UK Treasury securities | — |
| | 150 |
| | | | | | | | | | — |
| | 150 |
| Asset-backed securities | | | | | | | | | 33 |
| | 32 |
| | 33 |
| | 32 |
| Equity securities | 68 |
| | 134 |
| | | | | | | | | | 68 |
| | 134 |
| Multi-asset securities (1) | | | | | 329 |
| | 77 |
| | | | | | 329 |
| | 77 |
| Total | $ | 74 |
| | $ | 285 |
| | $ | 329 |
| | $ | 116 |
| | $ | 33 |
| | $ | 32 |
| | $ | 436 |
| | $ | 433 |
|
| | (1) | Multi-asset securities represent pension plan assets that are invested in funds comprised of broad ranges of assets. |
|