Visa (V) 10-Q 3 Feb 10 2010 Q1 Quarterly report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Sep. 30, 2009
Assets
Cash and cash equivalents	$4,160	$4,617
Restricted cash-litigation escrow (Note 2)	1,365	1,365
Investment securities
Trading	68	59
Available-for-sale	25	56
Settlement receivable	736	605
Accounts receivable	536	444
Customer collateral (Note 5)	815	812
Current portion of volume and support incentives	241	214
Current portion of deferred tax assets	595	703
Prepaid expenses and other current assets	212	366
Total current assets	8,753	9,241
Restricted cash-litigation escrow (Note 2)	280	350
Investment securities, available-for-sale	159	168
Volume and support incentives	109	102
Property, equipment and technology, net	1,203	1,204
Other assets	120	125
Intangible assets	10,883	10,883
Goodwill	10,208	10,208
Total assets	31,715	32,281
Liabilities
Accounts payable	87	156
Settlement payable	629	634
Customer collateral (Note 5)	815	812
Accrued compensation and benefits	228	396
Volume and support incentives	314	284
Accrued liabilities	883	754
Current portion of long-term debt	12	12
Current portion of accrued litigation (Note 10)	669	1,394
Total current liabilities	3,637	4,442
Long-term debt	41	44
Accrued litigation (Note 10)	260	323
Deferred tax liabilities	3,806	3,807
Other liabilities	494	472
Total liabilities	8,238	9,088
Equity
Additional paid-in capital	20,957	21,160
Accumulated income	2,691	2,219
Accumulated other comprehensive loss, net
Investment securities, available-for-sale	10	10
Defined benefit pension and other postretirement plans	(133)	(136)
Derivative instruments	(50)	(58)
Foreign currency translation loss	(2)	(4)
Total accumulated other comprehensive loss, net	(175)	(188)
Total Visa Inc. stockholders' equity	23,472	23,189
Non-controlling interest	5	4
Total equity	23,477	23,193
Total liabilities and equity	31,715	32,281
Preferred stock
Equity
Preferred stock, $0.0001 par value, 25 shares authorized and none issued	$0	$0

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (Preferred stock, USD $)
Share data in Millions	Dec. 31, 2009	Sep. 30, 2009
Preferred stock, par value	0.0001	0.0001
Preferred stock, shares authorized	25	25
Preferred stock, shares issued	0	0

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	3 Months Ended Dec. 31, 2009	3 Months Ended Dec. 31, 2008
Operating Revenues
Service revenues	$827	$793
Data processing revenues	765	554
International transaction revenues	552	505
Other revenues	190	156
Volume and support incentives	(374)	(269)
Total operating revenues	1,960	1,739
Operating Expenses
Personnel	274	299
Network, EDP and communications	105	93
Advertising, marketing and promotion	216	210
Professional and consulting fees	51	56
Depreciation and amortization	62	52
Administrative and other	78	63
Litigation provision (Note 10)	(43)	0
Total operating expenses	743	773
Operating income	1,217	966
Other Income (Expense)
Equity in earnings of unconsolidated affiliates	0	(1)
Interest expense	(16)	(30)
Investment income, net	5	19
Other	2	(1)
Total other expense	(9)	(13)
Income before income taxes	1,208	953
Income tax expense	445	379
Net income including non-controlling interest	763	574
Loss attributable to non-controlling interest	0	0
Net income attributable to Visa Inc.	$763	$574
Class A
Other Income (Expense)
Basic earnings per share (Notes 6 & 7)		0.74
Basic weighted average shares outstanding (Notes 6 & 7)		446
Diluted earnings per share (Notes 6 & 7)		0.74
Diluted weighted average shares outstanding (Notes 6 & 7)		773
Class B
Other Income (Expense)
Basic earnings per share (Notes 6 & 7)	0.6	0.52
Basic weighted average shares outstanding (Notes 6 & 7)	245	245
Diluted earnings per share (Notes 6 & 7)	0.6	0.52
Diluted weighted average shares outstanding (Notes 6 & 7)	245	245
Class C
Other Income (Expense)
Basic earnings per share (Notes 6 & 7)		0.74
Basic weighted average shares outstanding (Notes 6 & 7)		152
Diluted earnings per share (Notes 6 & 7)		0.74
Diluted weighted average shares outstanding (Notes 6 & 7)		152

Statement Of Other Comprehensiv

Statement Of Other Comprehensive Income (USD $)
In Millions	3 Months Ended Dec. 31, 2009	3 Months Ended Dec. 31, 2008
Net income including non-controlling interest	$763	$574
Investment securities, available-for-sale
Net unrealized gain	1	7
Income tax effect	0	(3)
Reclassification adjustment for net (gain) realized in net income including non-controlling interest	(1)	0
Income tax effect	0	0
Defined benefit pension and postretirement plans	4	1
Income tax effect	(1)	0
Derivative instruments
Net unrealized loss	(3)	(15)
Income tax effect	1	6
Reclassification adjustment for net loss realized in net income including non-controlling interest	15	0
Income tax effect	(5)	0
Foreign currency translation gain (loss)	2	(20)
Other comprehensive income (loss), net of tax	13	(24)
Comprehensive income including non-controlling interest	776	550
Comprehensive income (loss) attributable to non-controlling interest	0	0
Comprehensive income attributable to Visa Inc.	$776	$550

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Class A	Additional Paid In Capital		Class B	Class C	Treasury Stock	Accumulated Income	Accumulated Other Comprehensive Loss	Non-controlling Interests	Total
Beginning Balance at Sep. 30, 2009		$21,160				($2)	$2,219	($188)	$4	$23,193
Beginning Balance (in shares) at Sep. 30, 2009	470			245	131
Net income including non-controlling interest							763			763
Other comprehensive income (loss), net of tax								13		13
Issuance of restricted share awards (Note 8) (in shares)	1
Issuance of restricted share awards (Note 8)		0								0
Conversion of class C common stock upon sale into public market (Note 6) (in shares)	3				(3)
Share-based compensation (Note 8)		32								32
Tax benefit for share-based compensation		5								5
Cash proceeds from exercise of stock options		8	[2]							8	[2]
Restricted stock instruments settled in cash for taxes		(12)	[1]							(12)	[1]
Cash dividends declared and paid, at a quarterly amount of $0.125 per as-converted share (Note 6)							(93)			(93)
Retirement of treasury stock (Note 6)		(1)				1				0
Repurchase of class A common stock (Note 6) (in shares)	(5)
Repurchase of class A common stock (Note 6)		(234)					(198)			(432)
Investment in partially owned consolidated subsidiary		(1)							1	0
Ending Balance (in shares) at Dec. 31, 2009	469			245	128
Ending Balance at Dec. 31, 2009		$20,957				($1)	$2,691	($175)	$5	$23,477
[1]Decrease to class A common stock is less than 1 million shares
[2]Increase to class A common stock is less than 1 million shares

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
	3 Months Ended Dec. 31, 2009
Cash dividends declared and paid, per as-converted share	0.125

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	3 Months Ended Dec. 31, 2009		3 Months Ended Dec. 31, 2008
Operating Activities
Net income including non-controlling interest	$763		$574
Adjustments to reconcile net income including non-controlling interest to net cash (used in) provided by operating activities:
Depreciation and amortization of property, equipment and technology	62		52
Share-based compensation	32		32
Interest earned on litigation escrow, net of tax	0		(7)
Tax benefit for share-based compensation	(5)		0
Restricted stock instruments settled in cash for taxes	(12)	[1]	0
Net recognized (gain) loss on investment securities, including other-than-temporary impairment	(1)		7
Asset impairment	1		1
Amortization of volume and support incentives	374		269
Accrued litigation and accretion	(33)		25
Equity in earnings of unconsolidated affiliates	0		1
Deferred income taxes	102		179
Change in operating assets and liabilities:
Trading securities	(9)		7
Accounts receivable	(92)		(36)
Settlement receivable	(131)		386
Volume and support incentives	(378)		(254)
Other assets	137		95
Accounts payable	(69)		(66)
Settlement payable	(5)		(453)
Accrued compensation and benefits	(168)		(157)
Accrued and other liabilities	158		59
Accrued litigation	(755)		(529)
Net cash (used in) provided by operating activities	(29)		185
Investment securities, available-for-sale:
Proceeds from sales and maturities	41		195
Distribution of money market investment (Note 3)	19		775
Purchases of /contributions to other investments	(1)		(1)
Purchases of property, equipment and technology	(37)		(68)
Net cash provided by investing activities	22		901
Financing Activities
Tax benefit for share-based compensation	5		0
Cash proceeds from exercise of stock options	8		0
Funding of litigation escrow account-Retrospective Responsibility Plan	0		(1,100)
Payments from litigation escrow account-Retrospective Responsibility Plan	70		397
Payment for redemption of stock	0		(2,646)
Dividends paid	(93)		(81)
Principal payments on debt	(3)		(2)
Principal payments on capital lease obligations	(7)		0
Repurchase of class A common stock	(432)		0
Net cash used in financing activities	(452)		(3,432)
Effect of exchange rate changes on cash and cash equivalents	2		(20)
Decrease in cash and cash equivalents	(457)		(2,366)
Cash and cash equivalents at beginning of year	4,617		4,979
Cash and cash equivalents at end of period	4,160		2,613
Supplemental Disclosure of Cash Flow Information
Income taxes paid, net of refunds	25		4
Amounts included in accounts payable and accrued and other liabilities related to purchases of property, equipment and technology	6		21
Interest payments on debt	1		1
Assets acquired in joint venture with note payable and equity interest issued	$0		$22
[1]Decrease to class A common stock is less than 1 million shares

Summary of Significant Accounti

Summary of Significant Accounting Policies
	3 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies	Note 1Summary of Significant Accounting Policies OrganizationVisa Inc. (Visa or the Company) is a global payments technology company that connects consumers, businesses, banks and governments around the world, enabling them to use digital currency instead of cash and checks. Visa and its consolidated subsidiaries, including Visa U.S.A. Inc. (Visa U.S.A.), Visa International Service Association (Visa International), Visa Worldwide Pte. Limited (VWPL), Visa Canada Corporation (Visa Canada) and Inovant LLC (Inovant), operate the worlds largest retail electronic payments network. The Company provides financial institutions with payment processing platforms that encompass consumer credit, debit, prepaid and commercial payments, and facilitate global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities. The Company does not issue cards, set fees, or determine the interest rates consumers will be charged on Visa-branded cards, which are the independent responsibility of the Companys issuing customers. Consolidation and basis of presentationThe accompanying unaudited consolidated financial statements include the accounts of Visa Inc. and its consolidated entities and are presented in accordance with accounting principles generally accepted in the United States of America (GAAP). The Company consolidates all entities that are controlled by ownership of a majority voting interest as well as variable interest entities for which the Company is the primary beneficiary. All significant intercompany accounts and transactions are eliminated in consolidation. Certain reclassifications, not affecting net income attributable to Visa, have been made to prior period information to conform to the current period presentation format, including the reclassification of $24 million of contractor expense, which was previously reported in professional and consulting fees, to personnel for the quarter ended December31, 2008. The Company began to report non-controlling interest (previously referred to as minority interest) as a component of equity in the first quarter of fiscal 2010 and for all comparable periods presented as required under Accounting Standards Codification (ASC) 810. The impact of reporting non-controlling interest is financial statement presentation only. The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (SEC) requirements of Quarterly Reports on Form10-Q and, consequently, do not include all of the annual disclosures required by GAAP. Reference should be made to the Visa Inc. Annual Report on Form 10-K for the year ended September30, 2009 for additional disclosures, including a summary of the Companys significant accounting policies. Subsequent events have been evaluated through February3, 2010, the date this quarterly report was filed with the SEC. Recently Issued Accounting Pronouncements In September 2009, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2009-12, Fair Value Measurements and Disclosures Investments

Retrospective Responsibility Pl

Retrospective Responsibility Plan
	3 Months Ended Dec. 31, 2009 USD / shares
Retrospective Responsibility Plan	Note 2Retrospective Responsibility Plan The Company has established several related mechanisms designed to address settled liability and potential liability under certain litigation referred to as the covered litigation, including the retrospective responsibility plan, or the plan. In accordance with the plan, the Company established a litigation escrow account, or the escrow account, from which settlements of, or judgments in, the covered litigation will be paid. Under the terms of the plan, when the Company funds the escrow account, the shares of class B common stock are subject to dilution through an adjustment to the conversion rate of the shares of class B common stock to shares of class A common stock. There was no funding to the escrow account during the first quarter of fiscal 2010. The conversion rate applicable to the Companys class B common stock is 0.5824classA share at December31, 2009. The following table sets forth the changes in the escrow account during the three months ended December31, 2009: (inmillions) Balance at October1, 2009 $ 1,715 American Express settlement payments (70 ) Interest earned, less applicable taxes Balance at December31, 2009 $ 1,645 Less: Current portion of escrow account 1,365 Long-term portion of escrow account $ 280 An accrual for covered litigation is recorded when loss is deemed to be probable and reasonably estimable. In making this determination, the Company evaluates information including funding decisions made by the litigation committee. The accrual related to covered litigation could be either higher or lower than the escrow account.

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements	Note 3Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis FairValueMeasurementsatDecember31,2009 UsingInputs Considered as Level1 Level2 Level3 (in millions) Assets Cash equivalents and restricted cash Money market funds and time deposits $ 5,455 Investment securities U.S. government-sponsored agency debt securities $ 137 Equity securities 84 Corporate debt securities $ 8 Mortgage backed securities 5 Other asset backed securities 5 Auction rate securities 13 Derivative financial instruments Foreign exchange derivative instruments 10 $ 5,539 $ 147 $ 31 Liabilities Other liabilities Visa Europe put option $ 346 Foreign exchange derivative instruments $ 72 FairValueMeasurementsatSeptember30,2009 UsingInputs Considered as Level1 Level2 Level3 (in millions) Assets Cash equivalents and restricted cash Money market funds and time deposits $ 5,977 Investment securities U.S. government-sponsored agency debt securities $ 169 Canadian government debt securities 7 Equity securities 73 Corporate debt securities $ 10 Mortgage backed securities 6 Other asset backed securities 5 Auction rate securities 13 Derivative financial instruments Foreign exchange derivative instruments 16 $ 6,050 $ 192 $ 34 Liabilities Other liabilities Visa Europe put option $ 346 Foreign exchange derivative instruments $ 96 Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Corporate debt securities, mortgage backed securities, other asset backed securities and auction rate securities are classified as Level 3 due to a lack of trading in active markets and a lack of observable inputs in measuring fair value. There was no change to the valuation techniques and related inputs used to measure fair value during the quarter ended December31, 2009. Visa Europe put option agreement. The Company has granted Visa Europe a perpetual put option, which if exercised, will require Visa Inc. to purchase all of the outstanding shares of capital stock of Visa Europe from its members. The purchase price of the Visa Europe shares under the put option is based upon a formula that, subject to certain adjustments, applies Visa Inc.s forward price-to-earnings multiple, or the P/E ratio (as defined in the option agreement), at the time the option is exercised to Visa Europes projected sustainable adjusted net operating income for the forward 12-month period, or the adjusted sustainable income. Visa Europes adjusted susta

Pension, Postretirement and Oth

Pension, Postretirement and Other Benefits
	3 Months Ended Dec. 31, 2009 USD / shares
Pension, Postretirement and Other Benefits	Note 4Pension, Postretirement and Other Benefits The Company sponsors various qualified and non-qualified defined benefit pension and other postretirement benefit plans which provide retirement and health benefits for substantially all employees residing in the United States. The components of net periodic benefit cost are as follows: PensionBenefits OtherPostretirementBenefits ThreeMonthsEnded December31, 2009 2008 2009 2008 (in millions) Service cost $ 13 $ 13 $ $ Interest cost 10 12 1 Expected return on assets (12 ) (11 ) Amortization of: Prior service credit (2 ) (2 ) (1 ) Actuarial loss 6 3 Total net periodic benefit cost $ 15 $ 15 $ $

Settlement Guarantee Management

Settlement Guarantee Management
	3 Months Ended Dec. 31, 2009 USD / shares
Settlement Guarantee Management	Note 5Settlement Guarantee Management The indemnification for settlement losses that Visa provides to its customers creates settlement risk for the Company due to the difference in timing between the date of a payment transaction and the date of subsequent settlement. The term and amount of the indemnification are unlimited. The Company requires certain customers that do not meet its credit standards to post collateral. The Companys estimated maximum settlement exposure was approximately $43.8 billion at December31, 2009 compared to $41.8 billion at September30, 2009. Of these amounts, $3.9 billion at December31, 2009 and $3.7 billion at September30, 2009, are covered by collateral. The total available collateral balances presented below are greater than the settlement exposure covered by customer collateral held due to instances in which the available collateral exceeds the total settlement exposure for certain financial institutions at each date presented. Cash equivalents collateral is reflected in customer collateral on the consolidated balance sheet as it is held in escrow in the Companys name. All other collateral is excluded from the consolidated balance sheet. Pledged securities are held by third parties in trust for the Company and customers. Guarantees are provided primarily by parent financial institutions to secure the obligations of their subsidiaries, and the Company routinely evaluates the financial viability of institutions providing the guarantees. The Company maintained collateral as follows: December31, 2009 September30, 2009 (in millions) Cash equivalents $ 815 $ 812 Pledged securities at market value 347 243 Letters of credit 729 703 Guarantees 2,704 2,644 Total $ 4,595 $ 4,402 The fair value of the settlement risk guarantee is estimated based on a proprietary probability-weighted model and was less than $1 million at December31, 2009, and September30, 2009. The amounts are reflected in accrued liabilities on the consolidated balance sheets.

Stockholders' Equity

Stockholders' Equity
	10/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity	Note 6Stockholders Equity The number of class A shares outstanding on an as-converted basis at December31, 2009 is as follows: (in millions) SharesOutstanding atDecember31, 2009 ConversionRate IntoClassA Common Stock AsConverted ClassA common stock 469 469 Class B common stock 245 0.5824 143 Class C common stock 128 1.0000 128 842 740 2009 Accelerated Class C Share Release Program During the three months ended December31, 2009, an additional 3million shares were converted from class C common stock to class A common stock upon the sale or transfer by the class C shareholders into the public market. Of the 40million shares of class C common stock released from transfer restrictions under this program, 16million shares remain available for sale or transfer, subject to certain terms and conditions, at December31, 2009. There is no dilutive effect to the outstanding share count from these transactions. 2010 Class C Share Release Program On January 21, 2010, the Company announced that its board of directors had approved the release of additional class C shares. The number of shares released for any classC shareholder will be the greater of (a)50% (fifty percent) of the restricted class C shares held by that shareholder as of March1, 2010, and (b)5,000 (five thousand) class C shares. Shareholder application will not be required. The shares will automatically become eligible for public sale on March8, 2010. The remaining restricted class C shares will continue to be subject to the general transfer restrictions that expire on March25, 2011, under Visas certificate of incorporation. Class C shares sold in the public market upon release under this program will automatically convert to class A shares. Approximately 56million class C shares are expected to be released from transfer restrictions. The release of the class C shares will not increase the number of outstanding shares on an as-converted basis of the Companys common stock, and there will be no dilutive effect to the outstanding class A common stock share count on an as-converted basis. Share Repurchase Plan In October2009, the Companys board of directors authorized a $1 billion share repurchase plan. The authorization will be in place through September30, 2010, and is subject to extension or expansion at the determination of the Companys board of directors. Under this plan, the Company repurchased 5.5million shares of its classA common stock at an average price of $78.78 per share for a total cost of $432 million during the first quarter of fiscal 2010. Repurchased shares have been retired and constitute authorized but unissued shares. At December31, 2009, the share repurchase plan has remaining authorized funds of $568 million. Dividends Declared On January20, 2010, the Companys board of directors declared a dividend in the amount of $0.125 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) which will be paid on March2, 2010, to all holders of record of the Companys class A, class B, and classC common stock as of February12

Earnings Per Share

Earnings Per Share
	3 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share	Note 7Earnings Per Share During the first quarter of fiscal 2010, the Company adopted a new accounting standard which defines unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents as participating securities and requires these securities to be included in computing earnings per share under the two-class method. The Companys unvested restricted stock awards and unvested restricted stock units are considered participating securities and have been included in the computation of earnings per share under the two-class method. Comparable prior period earnings per share data have been recomputed to conform to current period presentation. There was no change to the basic and diluted earnings per share previously reported for the three months ended December31, 2008, as a result of this adoption. The following tables present basic and diluted earnings per share for the three months ended December31, 2009. Basic Earnings Per Share Diluted Earnings Per Share (in millions, except per share data) Income Allocation ($) (A) Weighted Average Shares Outstanding(B) Earningsper Share($)= (A)/(B) Income Allocation ($) (A) Weighted Average Shares Outstanding(B) Earningsper Share ($)= (A)/(B) Class A(1) 481 468 1.03 763 745 1.02 Class B 147 (2) 245 0.60 146 (2) 245 0.60 Class C 133 129 1.03 132 129 1.02 Participating Securities 2 Notpresented Notpresented 2 Notpresented Notpresented Net income attributable to Visa Inc. $ 763 The following tables present basic and diluted earnings per share for the three months ended December31, 2008. Basic Earnings Per Share Diluted Earnings Per Share (in millions, except per share data) Income Allocation ($) (A) Weighted Average Shares Outstanding(B) Earningsper Share ($) = (A)/(B) Income Allocation ($) (A) Weighted Average Shares Outstanding(B) Earningsper Share ($)= (A)/(B) Common Stock Redeemed October10, 2008 Class C (series II) and class C (series III)(3) 4 Notpresented Notpresented 4 Notpresented Notpresented Class A(1) 329 446 0.74 571 773 0.74 Class B 127 (2) 245 0.52 127 (2) 245 0.52 Class C(3) 112 152 0.74 111 152 0.74 Participating Securities 2 Notpresented Notpresented 2 Notpresented Notpresented Net income attributable to Visa Inc. $ 574 (1) The calculation of diluted class A earnings per share considers, if dilutive, potential class A common stock equivalent shares outstanding during the period consisting of: (1)incremental shares of class A common stock issuable upon the conversion of class B and class C common stock based on the conversion rate in effect through the period, (2)par

Share-based Compensation

Share-based Compensation
	3 Months Ended Dec. 31, 2009 USD / shares
Share-based Compensation	Note 8Share-based Compensation During the three months ended December31, 2009, the Company granted 961,967 non-qualified stock options, or options, 846,648 restricted stock awards, or RSAs, and 241,661 restricted stock units, or RSUs, to Company employees and non-employee directors under the 2007 Equity Incentive Compensation Plan. The options had a weighted average exercise price per share of $79.59 and a weighted average grant date fair value per share of $29.49. The RSAs and RSUs had weighted average grant date fair values per share of $79.59. The Company accounted for these awards using the straight-line method of attribution for expensing equity awards with only service conditions. Compensation expense is recorded net of estimated forfeitures, which are adjusted as appropriate. The Company also granted performance-based shares during the quarter ended December31, 2009. The ultimate number of performance shares to be earned will be between zero and 203,006, depending on the Companys achievement of specified cumulative net income performance targets, and the Companys stock price ranked against the total shareholder return of companies that are included in the Standard Poors 500 Index during the approximate two-year period beginning October28, 2009. These earned performance shares vest in two equal installments on November30, 2011 and 2012, subject to earlier vesting in full under certain conditions. The grant-date fair value of the performance-based shares, incorporating the market condition by using a Monte Carlo simulation model, was $88.06 per share. Compensation expense for the performance awards is initially estimated based on target performance and is adjusted as appropriate throughout the performance period. For awards with performance conditions, the Company uses the graded-vesting method of expense attribution. Compensation expense is recorded net of estimated forfeitures, which are adjusted as appropriate.

Income Taxes

Income Taxes
	3 Months Ended Dec. 31, 2009 USD / shares
Income Taxes	Note 9Income Taxes The effective income tax rates were 37% and 40% for the three months ended December31, 2009 and 2008, respectively. The rate for the three months ended December31, 2009 was lower than the rate for the comparable period in the prior year primarily due to changes in the geographic mix of the Companys global income and the benefit of Singapore tax incentives.

Legal Matters

Legal Matters
	3 Months Ended Dec. 31, 2009 USD / shares
Legal Matters	Note 10Legal 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 amounts 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 Companys results of operations, financial position or cash flows. The Companys litigation provision was ($43) million and less than $1 million for the three months ended December31, 2009 and 2008, respectively. The credit to the provision in the three months ended December31, 2009, is primarily a result of a $41 million pre-tax gain recognized related to the prepayment of the remaining obligations under the Retailers litigation (discussed in Other Litigation below). The litigation accrual is an estimate and is based on managements understanding of its litigation profile, the specifics of each case, advice of counsel to the extent appropriate and managements best estimate of incurred loss at the balance sheet date. 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 following table summarizes the activity related to accrued litigation for both covered and other non-covered litigation for the three months ended December31: 2009 2008 (in millions) Balance at October1 $ 1,717 $ 3,758 Provision for settled legal matters(1) (43 ) Settlement obligation refunded by Morgan Stanley(2) 65 Interest accretion on settled matters 10 25 Payments on settled matters(3) (755 ) (543 ) Balance at December31 $ 929 $ 3,305 (1) This amount includes the reduction to the provision for the $41 million pre-tax gain recognized related to the prepayment of the remaining obligations under the Retailers litigation. (2) This balance represents the amount of the Discover settlement refunded to the Company during fiscal 2009 by Morgan Stanley under a separate agreement. (3) This amount includes the Companys October 2009 prepayment of its remaining $800 million in payment obligations in the Retailers litigation at a discounted amount of $682 million. Covered Litigation Visa Inc., Visa U.S.A. and Visa International are parties to certain legal proceedings discussed below that are subject to the retrospective responsibility plan, which the Company refers to as the covered litigation. See Note 2Retrospective Responsibility Plan. An accrual for covered litigation is recorded when loss is deemed to be probable and reasonably

Document Information

Document Information
	3 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	3 Months Ended Dec. 31, 2009	Jan. 27, 2010
Trading Symbol	V
Entity Registrant Name	VISA INC.
Entity Central Index Key	0001403161
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		469,280,842
Class B
Entity Common Stock, Shares Outstanding		245,513,385
Class C
Entity Common Stock, Shares Outstanding		127,450,143