Cover
Cover - shares | 6 Months Ended | |
Mar. 31, 2022 | Apr. 20, 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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, City or Town | San Francisco, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94128-8999 | |
City Area Code | 650 | |
Local Phone Number | 432-3200 | |
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | V | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001403161 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A common stock | ||
Entity Common Stock, Shares Outstanding | 1,645,719,350 | |
Class B common stock | ||
Entity Common Stock, Shares Outstanding | 245,513,385 | |
Class C common stock | ||
Entity Common Stock, Shares Outstanding | 10,045,333 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Assets | ||
Cash and cash equivalents | $ 12,299 | $ 16,487 |
Restricted cash equivalents—U.S. litigation escrow | 882 | 894 |
Investment securities | 1,230 | 2,025 |
Settlement receivable | 1,632 | 1,758 |
Accounts receivable | 2,135 | 1,968 |
Customer collateral | 2,309 | 2,260 |
Current portion of client incentives | 1,309 | 1,359 |
Prepaid expenses and other current assets | 2,295 | 856 |
Total current assets | 24,091 | 27,607 |
Investment securities | 2,296 | 1,705 |
Client incentives | 3,256 | 3,245 |
Property, equipment and technology, net | 3,120 | 2,715 |
Goodwill | 18,143 | 15,958 |
Intangible assets, net | 27,006 | 27,664 |
Other assets | 3,896 | 4,002 |
Total assets | 81,808 | 82,896 |
Liabilities | ||
Accounts payable | 182 | 266 |
Settlement payable | 2,409 | 2,443 |
Customer collateral | 2,309 | 2,260 |
Accrued compensation and benefits | 877 | 1,211 |
Client incentives | 5,436 | 5,243 |
Accrued liabilities | 3,172 | 2,334 |
Current maturities of debt | 3,548 | 999 |
Accrued litigation | 769 | 983 |
Total current liabilities | 18,702 | 15,739 |
Long-term debt | 17,479 | 19,978 |
Deferred tax liabilities | 6,081 | 6,128 |
Other liabilities | 3,557 | 3,462 |
Total liabilities | 45,819 | 45,307 |
Equity | ||
Right to recover for covered losses | (120) | (133) |
Additional paid-in capital | 18,876 | 18,855 |
Accumulated income | 14,651 | 15,351 |
Accumulated other comprehensive income (loss), net: | ||
Investment securities | (41) | (1) |
Defined benefit pension and other postretirement plans | (48) | (49) |
Derivative instruments | (136) | (257) |
Foreign currency translation adjustments | (180) | 743 |
Total accumulated other comprehensive income (loss), net | (405) | 436 |
Total equity | 35,989 | 37,589 |
Total liabilities and equity | 81,808 | 82,896 |
Series A preferred stock | ||
Equity | ||
Preferred stock | 422 | 486 |
Series B preferred stock | ||
Equity | ||
Preferred stock | 1,045 | 1,071 |
Series C preferred stock | ||
Equity | ||
Preferred stock | 1,520 | 1,523 |
Class A common stock | ||
Equity | ||
Common stock | 0 | 0 |
Class B common stock | ||
Equity | ||
Common stock | 0 | 0 |
Class C common stock | ||
Equity | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 25 | 25 |
Preferred stock, shares issued (in shares) | 5 | 5 |
Preferred stock, shares outstanding (in shares) | 5 | 5 |
Series A preferred stock | ||
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series B preferred stock | ||
Preferred stock, shares issued (in shares) | 2 | 2 |
Preferred stock, shares outstanding (in shares) | 2 | 2 |
Series C preferred stock | ||
Preferred stock, shares issued (in shares) | 3 | 3 |
Preferred stock, shares outstanding (in shares) | 3 | 3 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 2,001,622 | 2,001,622 |
Common stock, shares issued (in shares) | 1,648 | 1,677 |
Common stock, shares outstanding (in shares) | 1,648 | 1,677 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 622 | 622 |
Common stock, shares issued (in shares) | 245 | 245 |
Common stock, shares outstanding (in shares) | 245 | 245 |
Class C common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,097 | 1,097 |
Common stock, shares issued (in shares) | 10 | 10 |
Common stock, shares outstanding (in shares) | 10 | 10 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net revenues | $ 7,189 | $ 5,729 | $ 14,248 | $ 11,416 |
Operating Expenses | ||||
Personnel | 1,226 | 1,114 | 2,351 | 2,095 |
Marketing | 314 | 206 | 594 | 411 |
Network and processing | 190 | 179 | 380 | 352 |
Professional fees | 125 | 82 | 225 | 165 |
Depreciation and amortization | 207 | 201 | 405 | 398 |
General and administrative | 325 | 363 | 567 | 566 |
Litigation provision | 0 | 3 | 148 | 4 |
Total operating expenses | 2,387 | 2,148 | 4,670 | 3,991 |
Operating income | 4,802 | 3,581 | 9,578 | 7,425 |
Non-operating Income (Expense) | ||||
Interest expense, net | (134) | (121) | (268) | (257) |
Investment income and other | (126) | 168 | 129 | 208 |
Total non-operating income (expense) | (260) | 47 | (139) | (49) |
Income before income taxes | 4,542 | 3,628 | 9,439 | 7,376 |
Income tax provision | 895 | 602 | 1,833 | 1,224 |
Net income | $ 3,647 | $ 3,026 | $ 7,606 | $ 6,152 |
Class A common stock | ||||
Earnings Per Share | ||||
Basic Earnings Per Share (in dollars per share) | $ 1.70 | $ 1.38 | $ 3.54 | $ 2.80 |
Basic Weighted-average Shares Outstanding (in shares) | 1,654 | 1,695 | 1,662 | 1,695 |
Diluted Earnings Per Share (in dollars per share) | $ 1.70 | $ 1.38 | $ 3.54 | $ 2.80 |
Diluted Weighted-average Shares Outstanding (in shares) | 2,142 | 2,193 | 2,150 | 2,196 |
Class B common stock | ||||
Earnings Per Share | ||||
Basic Earnings Per Share (in dollars per share) | $ 2.76 | $ 2.24 | $ 5.74 | $ 4.55 |
Basic Weighted-average Shares Outstanding (in shares) | 245 | 245 | 245 | 245 |
Diluted Earnings Per Share (in dollars per share) | $ 2.75 | $ 2.24 | $ 5.73 | $ 4.54 |
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) | $ 6.82 | $ 5.52 | $ 14.16 | $ 11.22 |
Basic Weighted-average Shares Outstanding (in shares) | 10 | 11 | 10 | 11 |
Diluted Earnings Per Share (in dollars per share) | $ 6.81 | $ 5.52 | $ 14.15 | $ 11.20 |
Diluted Weighted-average Shares Outstanding (in shares) | 10 | 11 | 10 | 11 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,647 | $ 3,026 | $ 7,606 | $ 6,152 |
Investment securities: | ||||
Net unrealized gain (loss) | (40) | (1) | (50) | (2) |
Income tax effect | 8 | 0 | 10 | 0 |
Defined benefit pension and other postretirement plans: | ||||
Net unrealized actuarial gain (loss) and prior service credit (cost) | (2) | (2) | (1) | (3) |
Income tax effect | 0 | 1 | 0 | 2 |
Reclassification adjustments | 1 | 3 | 2 | 6 |
Income tax effect | 0 | 0 | 0 | (1) |
Derivative instruments: | ||||
Net unrealized gain (loss) | 77 | 280 | 191 | (17) |
Income tax effect | (13) | (57) | (35) | 6 |
Reclassification adjustments | (33) | 5 | (39) | (13) |
Income tax effect | 4 | 0 | 4 | 5 |
Foreign currency translation adjustments | (335) | (1,011) | (923) | 35 |
Other comprehensive income (loss), net of tax | (333) | (782) | (841) | 18 |
Comprehensive income | $ 3,314 | $ 2,244 | $ 6,765 | $ 6,170 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions | Total | Conversion of series A preferred stock upon sales into public market | Conversion of class C common stock upon sales into public market | Cumulative Effect, Period of Adoption, Adjustment | Series B preferred stock | Series C preferred stock | Class A common stock | Preferred Stock | Preferred StockConversion of series A preferred stock upon sales into public market | Preferred StockSeries A preferred stock | [1] | Preferred StockSeries A preferred stockConversion of series A preferred stock upon sales into public market | Preferred StockSeries B preferred stock | Preferred StockSeries C preferred stock | Common StockClass A common stock | Common StockClass A common stockConversion of series A preferred stock upon sales into public market | Common StockClass A common stockConversion of class C common stock upon sales into public market | Common StockClass B common stock | Common StockClass C common stock | Common StockClass C common stockConversion of class C common stock upon sales into public market | Right to Recover for Covered Losses | Additional Paid-In Capital | Additional Paid-In CapitalConversion of series A preferred stock upon sales into public market | Accumulated Income | Accumulated IncomeCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss), Net | ||||
Beginning balance (for Series A Preferred Stock, less than one million shares) (in shares) at Sep. 30, 2020 | 0 | 2 | 3 | 1,683 | 245 | 11 | ||||||||||||||||||||||||
Beginning balance at Sep. 30, 2020 | $ 36,210 | $ 3 | $ 5,086 | $ 1,106 | $ 1,543 | $ (39) | $ 16,721 | $ 14,088 | $ 3 | $ 354 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Net income | 6,152 | 6,152 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 18 | 18 | ||||||||||||||||||||||||||||
Comprehensive income | 6,170 | |||||||||||||||||||||||||||||
VE territory covered losses incurred | (17) | 0 | 0 | (17) | ||||||||||||||||||||||||||
Recovery through conversion rate adjustment | 0 | $ 9 | $ 6 | (15) | $ (9) | $ (6) | 15 | |||||||||||||||||||||||
Conversion of stock (for Series A Preferred Stock, less than one million shares) (in shares) | 0 | [1] | 25 | 0 | [1] | 0 | [1] | |||||||||||||||||||||||
Conversion of stock | $ 0 | $ (1,724) | $ 1,724 | |||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | 275 | 275 | ||||||||||||||||||||||||||||
Vesting of restricted stock and performance-based shares (in shares) | 3 | |||||||||||||||||||||||||||||
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 | (140) | (140) | ||||||||||||||||||||||||||||
Cash proceeds from issuance of class A common stock under employee equity plans (in shares) | 1 | |||||||||||||||||||||||||||||
Cash proceeds from issuance of class A common stock under employee equity plans | 108 | 108 | ||||||||||||||||||||||||||||
Cash dividends declared and paid, at a quarterly amount per Class A share | (1,404) | (1,404) | ||||||||||||||||||||||||||||
Repurchase of class A common stock (in shares) | (17) | (17) | ||||||||||||||||||||||||||||
Repurchase of class A common stock | (3,509) | $ (3,509) | (183) | (3,326) | ||||||||||||||||||||||||||
Ending balance (for Series A Preferred Stock, less than one million shares) (in shares) at Mar. 31, 2021 | 0 | 2 | 3 | 1,694 | 245 | 11 | ||||||||||||||||||||||||
Ending balance at Mar. 31, 2021 | 37,696 | 3,347 | $ 1,097 | $ 1,537 | (41) | 18,505 | 15,513 | 372 | ||||||||||||||||||||||
Beginning balance (for Series A Preferred Stock, less than one million shares) (in shares) at Dec. 31, 2020 | 0 | 2 | 3 | 1,696 | 245 | 11 | ||||||||||||||||||||||||
Beginning balance at Dec. 31, 2020 | 37,679 | 3,683 | (34) | 18,063 | 14,813 | 1,154 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Net income | 3,026 | 3,026 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (782) | (782) | ||||||||||||||||||||||||||||
Comprehensive income | 2,244 | |||||||||||||||||||||||||||||
VE territory covered losses incurred | (7) | (7) | ||||||||||||||||||||||||||||
Conversion of stock (for Series A Preferred Stock, less than one million shares) (in shares) | 0 | [1] | 5 | 0 | [1] | 0 | [1] | |||||||||||||||||||||||
Conversion of stock | 0 | (336) | 336 | |||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | 153 | 153 | ||||||||||||||||||||||||||||
Vesting of restricted stock and performance-based shares (in shares) | [1] | 0 | ||||||||||||||||||||||||||||
Restricted stock and performance-based shares settled in cash for taxes (in shares) | [1] | 0 | ||||||||||||||||||||||||||||
Restricted stock and performance-based shares settled in cash for taxes | (6) | (6) | ||||||||||||||||||||||||||||
Cash proceeds from issuance of class A common stock under employee equity plans (in shares) | 1 | |||||||||||||||||||||||||||||
Cash proceeds from issuance of class A common stock under employee equity plans | 47 | 47 | ||||||||||||||||||||||||||||
Cash dividends declared and paid, at a quarterly amount per Class A share | (701) | (701) | ||||||||||||||||||||||||||||
Repurchase of class A common stock (in shares) | (8) | (8) | ||||||||||||||||||||||||||||
Repurchase of class A common stock | (1,713) | $ (1,713) | (88) | (1,625) | ||||||||||||||||||||||||||
Ending balance (for Series A Preferred Stock, less than one million shares) (in shares) at Mar. 31, 2021 | 0 | 2 | 3 | 1,694 | 245 | 11 | ||||||||||||||||||||||||
Ending balance at Mar. 31, 2021 | 37,696 | 3,347 | $ 1,097 | $ 1,537 | (41) | 18,505 | 15,513 | 372 | ||||||||||||||||||||||
Beginning balance (for Series A Preferred Stock, less than one million shares) (in shares) at Sep. 30, 2021 | 0 | 2 | 3 | 1,677 | 245 | 10 | ||||||||||||||||||||||||
Beginning balance at Sep. 30, 2021 | 37,589 | 3,080 | $ 1,071 | $ 1,523 | (133) | 18,855 | 15,351 | 436 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Net income | 7,606 | 7,606 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (841) | (841) | ||||||||||||||||||||||||||||
Comprehensive income | 6,765 | |||||||||||||||||||||||||||||
VE territory covered losses incurred | (16) | 0 | 0 | (16) | ||||||||||||||||||||||||||
Recovery through conversion rate adjustment | 0 | $ 26 | $ 3 | (29) | $ (26) | $ (3) | 29 | |||||||||||||||||||||||
Conversion of stock (for Series A Preferred Stock, less than one million shares) (in shares) | 0 | [1] | 1 | 0 | [1] | 0 | [1] | |||||||||||||||||||||||
Conversion of stock | 0 | $ 0 | (64) | 64 | ||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | 318 | 318 | ||||||||||||||||||||||||||||
Vesting of restricted stock and performance-based shares (in shares) | 2 | |||||||||||||||||||||||||||||
Restricted stock and performance-based shares settled in cash for taxes (in shares) | [1] | 0 | ||||||||||||||||||||||||||||
Restricted stock and performance-based shares settled in cash for taxes | (116) | (116) | ||||||||||||||||||||||||||||
Cash proceeds from issuance of class A common stock under employee equity plans (in shares) | 2 | |||||||||||||||||||||||||||||
Cash proceeds from issuance of class A common stock under employee equity plans | 113 | 113 | ||||||||||||||||||||||||||||
Cash dividends declared and paid, at a quarterly amount per Class A share | (1,611) | (1,611) | ||||||||||||||||||||||||||||
Repurchase of class A common stock (in shares) | (34) | (34) | ||||||||||||||||||||||||||||
Repurchase of class A common stock | (7,053) | $ (7,053) | (358) | (6,695) | ||||||||||||||||||||||||||
Ending balance (for Series A Preferred Stock, less than one million shares) (in shares) at Mar. 31, 2022 | 0 | 2 | 3 | 1,648 | 245 | 10 | ||||||||||||||||||||||||
Ending balance at Mar. 31, 2022 | 35,989 | 2,987 | $ 1,045 | $ 1,520 | (120) | 18,876 | 14,651 | (405) | ||||||||||||||||||||||
Beginning balance (for Series A Preferred Stock, less than one million shares) (in shares) at Dec. 31, 2021 | 0 | 2 | 3 | 1,661 | 245 | 10 | ||||||||||||||||||||||||
Beginning balance at Dec. 31, 2021 | 36,194 | 2,995 | (111) | 18,776 | 14,606 | (72) | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Net income | 3,647 | 3,647 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (333) | (333) | ||||||||||||||||||||||||||||
Comprehensive income | 3,314 | |||||||||||||||||||||||||||||
VE territory covered losses incurred | (9) | (9) | ||||||||||||||||||||||||||||
Conversion of stock (for Series A Preferred Stock, less than one million shares) (in shares) | [1] | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Conversion of stock | $ 0 | $ 0 | $ (8) | $ 8 | ||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | 190 | 190 | ||||||||||||||||||||||||||||
Vesting of restricted stock and performance-based shares (in shares) | [1] | 0 | ||||||||||||||||||||||||||||
Restricted stock and performance-based shares settled in cash for taxes (in shares) | [1] | 0 | ||||||||||||||||||||||||||||
Restricted stock and performance-based shares settled in cash for taxes | (3) | (3) | ||||||||||||||||||||||||||||
Cash proceeds from issuance of class A common stock under employee equity plans (in shares) | 2 | |||||||||||||||||||||||||||||
Cash proceeds from issuance of class A common stock under employee equity plans | 54 | 54 | ||||||||||||||||||||||||||||
Cash dividends declared and paid, at a quarterly amount per Class A share | (802) | (802) | ||||||||||||||||||||||||||||
Repurchase of class A common stock (in shares) | (15) | (15) | ||||||||||||||||||||||||||||
Repurchase of class A common stock | (2,949) | $ (2,949) | (149) | (2,800) | ||||||||||||||||||||||||||
Ending balance (for Series A Preferred Stock, less than one million shares) (in shares) at Mar. 31, 2022 | 0 | 2 | 3 | 1,648 | 245 | 10 | ||||||||||||||||||||||||
Ending balance at Mar. 31, 2022 | $ 35,989 | $ 2,987 | $ 1,045 | $ 1,520 | $ (120) | $ 18,876 | $ 14,651 | $ (405) | ||||||||||||||||||||||
[1] | Increase, decrease or balance is less than one million shares. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared and paid, quarterly, per Class A share (in dollars per share) | $ 0.375 | $ 0.32 | $ 0.375 | $ 0.32 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Activities | ||
Net income | $ 7,606 | $ 6,152 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Client incentives | 4,865 | 3,850 |
Share-based compensation | 318 | 275 |
Depreciation and amortization of property, equipment, technology and intangible assets | 405 | 398 |
Deferred income taxes | 21 | (27) |
VE territory covered losses incurred | (16) | (17) |
(Gains) losses on equity investments, net | (104) | (172) |
Other | (61) | (48) |
Change in operating assets and liabilities: | ||
Settlement receivable | 3 | (127) |
Accounts receivable | (173) | (165) |
Client incentives | (4,503) | (3,262) |
Other assets | (291) | (116) |
Accounts payable | (75) | (41) |
Settlement payable | 111 | 210 |
Accrued and other liabilities | (173) | (39) |
Accrued litigation | (212) | (29) |
Net cash provided by (used in) operating activities | 7,721 | 6,842 |
Investing Activities | ||
Purchases of property, equipment and technology | (440) | (318) |
Investment securities: | ||
Purchases | (1,948) | (2,015) |
Proceeds from maturities and sales | 1,975 | 3,871 |
Acquisitions, net of cash and restricted cash acquired | (1,945) | (75) |
Purchases of / contributions to other investments | (55) | (30) |
Other investing activities | 81 | 41 |
Net cash provided by (used in) investing activities | (2,332) | 1,474 |
Financing Activities | ||
Repurchase of class A common stock | (7,053) | (3,509) |
Repayments of debt | 0 | (3,000) |
Dividends paid | (1,611) | (1,404) |
Proceeds from issuance of commercial paper | 300 | 0 |
Cash proceeds from issuance of class A common stock under employee equity plans | 113 | 108 |
Restricted stock and performance-based shares settled in cash for taxes | (116) | (140) |
Net cash provided by (used in) financing activities | (8,367) | (7,945) |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (305) | 16 |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | (3,283) | 387 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 19,799 | 19,171 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 16,516 | 19,558 |
Supplemental Disclosure | ||
Cash paid for income taxes, net | 2,107 | 1,505 |
Interest payments on debt | 304 | 340 |
Accruals related to purchases of property, equipment and technology | $ 27 | $ 17 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2022 | |
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 facilitates global commerce and money movement across more than 200 countries and territories. Visa and its wholly-owned consolidated subsidiaries operate one of the world’s largest electronic payments network — VisaNet — which provides transaction processing services (primarily authorization, clearing and settlement). The Company offers products and solutions that facilitate secure, reliable and efficient money movement for all participants in the ecosystem. Visa is not a financial institution and does not issue cards, extend credit or set rates and fees for account holders of 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 unaudited consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation. During the quarter ended March 31, 2022, economic sanctions were imposed on Russia, impacting Visa and its clients. The extent and severity of the sanctions impacted the Company’s operations and a reduction in Ruble liquidity impacted the Company’s ability to manage operational impact and related foreign currency risk. In March 2022, the Company announced it was suspending its operations in Russia. In addition, the Company deconsolidated its Russian subsidiary, resulting in a pre-tax loss of $35 million, which is included in general and administrative expense on the consolidated statements of operations. The accompanying unaudited consolidated financial statements are presented in accordance with 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, 2021 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. The results of operations for interim periods are not necessarily indicative of results for the full year. Use of estimates. The preparation of the accompanying unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates may change as new events occur and additional information is obtained, and will be recognized in the period in which such changes occur. Future actual results could differ materially from these estimates. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance and making other minor improvements. The Company adopted this guidance effective October 1, 2021. The adoption did not have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for purposes of applying |
Acquisitions
Acquisitions | 6 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Note 2—Acquisitions Currencycloud On December 20, 2021, Visa acquired The Currency Cloud Group Limited (“Currencycloud”), a UK-based global platform that enables banks and fintechs to provide innovative foreign exchange solutions for cross-border payments, for a total purchase consideration of $893 million (which includes the fair value of Visa’s previously held equity interest in Currencycloud). The Company allocated $150 million of the purchase consideration to technology, intangible assets, other net assets acquired and deferred tax liabilities and the remaining $743 million to goodwill. Tink On March 10, 2022, Visa acquired 100% of the share capital of Tink AB (“Tink”) for $1.9 billion in cash. Tink is a European open banking platform that enables financial institutions, fintechs and merchants to build financial products and services and move money. The acquisition is expected to help accelerate the adoption of open banking around the world by providing a secure, reliable platform for innovation. Total purchase consideration has been allocated to the assets acquired and liabilities assumed and is subject to revision. If additional information becomes available, the Company may further revise the purchase price allocation as soon as practicable, but no later than one year from the acquisition date; however, at this time, material changes are not expected. The following table summarizes the purchase price allocation for Tink: Purchase Price Allocation Weighted-Average Useful Life (in millions) (in years) Technology $ 245 4 Customer relationships 90 6 Deferred tax liabilities (71) Other net assets acquired (liabilities assumed) 22 Goodwill 1,577 Total $ 1,863 5 Goodwill is primarily attributable to synergies expected to be achieved from the acquisition and the assembled workforce. None of the goodwill recognized is expected to be deductible for tax purposes. The Company did not include Tink's financial results in the Company's consolidated statements of operations from the acquisition date, March 10, 2022, through March 31, 2022, as the impact is not material to the Company’s financial results. |
Revenues
Revenues | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Note 3—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: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in millions) Service revenues $ 3,521 $ 2,845 $ 6,714 $ 5,522 Data processing revenues 3,480 2,996 7,094 6,029 International transaction revenues 2,208 1,488 4,382 2,939 Other revenues 474 392 923 776 Client incentives (2,494) (1,992) (4,865) (3,850) Net revenues $ 7,189 $ 5,729 $ 14,248 $ 11,416 Three Months Ended Six Months Ended 2022 2021 2022 2021 (in millions) U.S. $ 3,079 $ 2,683 $ 6,257 $ 5,350 International 4,110 3,046 7,991 6,066 Net revenues $ 7,189 $ 5,729 $ 14,248 $ 11,416 |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 6 Months Ended |
Mar. 31, 2022 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Note 4—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows: March 31, September 30, (in millions) Cash and cash equivalents $ 12,299 $ 16,487 Restricted cash and restricted cash equivalents: U.S. litigation escrow 882 894 Customer collateral 2,309 2,260 Prepaid expenses and other current assets 1,026 158 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 16,516 $ 19,799 Prepaid expenses and other current assets include restricted cash and restricted cash equivalents related to funds held by the Company, primarily from Currencycloud, on behalf of clients in segregated bank accounts that cannot be withdrawn or used for general operating activities. These amounts are fully offset by corresponding liabilities recorded in accrued liabilities on the Company’s unaudited consolidated balance sheets. |
U.S. and Europe Retrospective R
U.S. and Europe Retrospective Responsibility Plans | 6 Months Ended |
Mar. 31, 2022 | |
Retrospective Responsibility Plan [Abstract] | |
U.S. and Europe Retrospective Responsibility Plans | Note 5—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 accrual related to the U.S. covered litigation could be either higher or lower than the U.S. litigation escrow account balance. See Note 13—Legal Matters . The following table presents the changes in the restricted cash equivalents—U.S. litigation escrow account: Six Months Ended 2022 2021 (in millions) Balance at beginning of period $ 894 $ 901 Deposits into the litigation escrow account 250 — Payments to opt-out merchants (1) and interest earned on escrow funds (262) (7) Balance at end of period $ 882 $ 894 (1) These payments are associated with the interchange multidistrict litigation. 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 series B and C preferred stock. VE territory covered losses are recorded in “right to recover for covered losses” within stockholders’ 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. The following table presents the activities related to VE territory covered losses in preferred stock and “right to recover for covered losses” within stockholders’ equity: Preferred Stock Right to Recover for Covered Losses Series B Series C (in millions) Balance as of September 30, 2021 $ 1,071 $ 1,523 $ (133) VE territory covered losses incurred (1) — — (16) Recovery through conversion rate adjustment (26) (3) 29 Balance as of March 31, 2022 $ 1,045 $ 1,520 $ (120) Preferred Stock Right to Recover for Covered Losses Series B Series C (in millions) Balance as of September 30, 2020 $ 1,106 $ 1,543 $ (39) VE territory covered losses incurred (1) — — (17) Recovery through conversion rate adjustment (9) (6) 15 Balance as of March 31, 2021 $ 1,097 $ 1,537 $ (41) (1) VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 13—Legal Matters . The following table presents the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred stock recorded in stockholders’ equity within the Company’s consolidated balance sheets: March 31, 2022 September 30, 2021 As-converted Value of Preferred Stock (1),(2) Book Value of Preferred Stock (1) As-converted Value of Preferred Stock (1),(3) Book Value of Preferred Stock (1) (in millions) Series B preferred stock $ 3,450 $ 1,045 $ 3,493 $ 1,071 Series C preferred stock 4,781 1,520 4,806 1,523 Total 8,231 2,565 8,299 2,594 Less: right to recover for covered losses (120) (120) (133) (133) Total recovery for covered losses available $ 8,111 $ 2,445 $ 8,166 $ 2,461 (1) Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers. (2) As of March 31, 2022, the as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the series B and C preferred stock outstanding, respectively; (b) 6.271 and 6.829, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) $221.77, Visa’s class A common stock closing stock price. (3) As of September 30, 2021, the as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the series B and C preferred stock outstanding, respectively; (b) 6.321 and 6.834, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) $222.75, Visa’s class A common stock closing stock price. |
Fair Value Measurements and Inv
Fair Value Measurements and Investments | 6 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Investments | Note 6—Fair Value Measurements and Investments Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair Value Measurements Level 1 Level 2 March 31, September 30, March 31, September 30, (in millions) Assets Cash equivalents and restricted cash equivalents: Money market funds $ 9,448 $ 11,779 $ — $ — U.S. government-sponsored debt securities — — 418 100 U.S. Treasury securities 200 2,400 — — Investment securities: Marketable equity securities 363 490 — — U.S. government-sponsored debt securities — — 110 245 U.S. Treasury securities 3,043 2,985 — — Other current and non-current assets: Money market funds 4 4 — — Derivative instruments — — 465 410 Total $ 13,058 $ 17,658 $ 993 $ 755 Liabilities Accrued compensation and benefits: Deferred compensation liability $ 179 $ 167 $ — $ — Accrued and other liabilities: Derivative instruments — — 226 109 Total $ 179 $ 167 $ 226 $ 109 Level 1 assets and liabilities. Money market funds, marketable equity securities and U.S. Treasury securities are classified as Level 1 within the fair value hierarchy, as fair value is based on unadjusted quoted prices in active markets for identical assets. The Company’s deferred compensation liability is measured at fair value based on marketable equity securities held under the deferred compensation plan. 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. Derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. U.S. government-sponsored debt securities and U.S. Treasury securities. As of March 31, 2022 and September 30, 2021, gross unrealized gains and losses were not material. As of March 31, 2022, $1.5 billion of the Company’s debt securities are due within one year and $2.3 billion is due between one to five years. 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. The following table summarizes the total carrying value of the Company’s non-marketable equity securities held as of March 31, 2022 including cumulative unrealized gains and losses: March 31, (in millions) Initial cost basis $ 908 Adjustments: Upward adjustments 806 Downward adjustments (including impairment) (66) Carrying amount, end of period $ 1,648 Unrealized gains and losses included in the carrying value of the Company’s non-marketable equity securities still held as of March 31, 2022 and 2021 were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in millions) Upward adjustments $ 2 $ 129 $ 226 $ 143 Downward adjustments (including impairment) $ (53) $ — $ (53) $ (2) For the three months ended March 31, 2022 and 2021, the Company recognized net unrealized losses of $156 million, and net unrealized gains of $147 million, respectively, on marketable and non-marketable equity securities still held as of quarter end. For the six months ended March 31, 2022 and 2021, the Company recognized net unrealized gains of $16 million and $176 million, respectively, on marketable and non-marketable equity securities still held as of quarter end. Non-financial assets and liabilities. Certain non-financial assets such as goodwill, intangible assets and property, equipment and technology are only recognized at fair value if they are deemed to be impaired. The Company performed its annual impairment review of its indefinite-lived intangible assets and goodwill as of February 1, 2022, and concluded there was no impairment as of that date. As of March 31, 2022, there were no impairment indicators. Other Fair Value Disclosures Debt. Debt instruments are measured at amortized cost on the Company’s unaudited 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. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. As of March 31, 2022, the carrying value and estimated fair value of debt was $20.7 billion and $20.8 billion, respectively. As of September 30, 2021, the carrying value and estimated fair value of debt was $21.0 billion and $22.5 billion, respectively. Other financial instruments not measured at fair value. At March 31, 2022, the carrying value of settlement receivable and payable, commercial paper and customer collateral approximates fair 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. |
Debt
Debt | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 7—Debt The Company had outstanding debt as follows: March 31, September 30, Effective Interest Rate (1) (in millions, except percentages) Commercial paper $ 300 $ — 0.35 % 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 % 1.90% Senior Notes due April 2027 1,500 1,500 2.02 % 0.75% Senior Notes due August 2027 500 500 0.84 % 2.75% Senior Notes due September 2027 750 750 2.91 % 2.05% Senior Notes due April 2030 1,500 1,500 2.13 % 1.10% Senior Notes due February 2031 1,000 1,000 1.20 % 4.15% Senior Notes due December 2035 1,500 1,500 4.23 % 2.70% Senior Notes due April 2040 1,000 1,000 2.80 % 4.30% Senior Notes due December 2045 3,500 3,500 4.37 % 3.65% Senior Notes due September 2047 750 750 3.73 % 2.00% Senior Notes due August 2050 1,750 1,750 2.09 % Total debt 21,300 21,000 Unamortized discounts and debt issuance costs (154) (161) Hedge accounting fair value adjustments (2) (119) 138 Total carrying value of debt $ 21,027 $ 20,977 Reported as: Current maturities of debt $ 3,548 $ 999 Long-term debt 17,479 19,978 Total carrying value of debt $ 21,027 $ 20,977 (1) Effective interest rates disclosed do not reflect hedge accounting adjustments. (2) Represents the change in fair value of interest rate swap agreements entered into on a portion of the outstanding senior notes. Commercial Paper Program Visa maintains a commercial paper program to support its working capital requirements and for other general corporate purposes. Under the program, the Company is authorized to issue up to $3.0 billion in outstanding notes, with maturities up to 397 days from the date of issuance. The commercial paper outstanding as of March 31, 2022 was fully repaid in April 2022. Subsequent to March 31, 2022, the Company issued $650 million of commercial paper that was also fully repaid in April 2022. |
Settlement Guarantee Management
Settlement Guarantee Management | 6 Months Ended |
Mar. 31, 2022 | |
Settlement Guarantee Management [Abstract] | |
Settlement Guarantee Management | Note 8—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. During the six months ended March 31, 2022, the Company’s maximum daily settlement exposure was $112.7 billion and the average daily settlement exposure was $71.3 billion. 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. The Company held the following collateral to manage settlement exposure: March 31, September 30, (in millions) Restricted cash and restricted cash equivalents $ 2,309 $ 2,260 Pledged securities at market value 270 254 Letters of credit 1,604 1,518 Guarantees 793 758 Total $ 4,976 $ 4,790 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 9—Stockholders’ Equity As-converted class A common stock. The number of shares of each series and class, and the number of shares of class A common stock on an as-converted basis were as follows: March 31, 2022 September 30, 2021 Shares Conversion Rate Into As-converted Class A Common Stock (1) Shares Conversion Rate Into As-converted Class A Common Stock (1) (in millions, except conversion rate) Series A preferred stock — (2) 100.0000 6 — (2) 100.0000 7 Series B preferred stock 2 6.2710 16 2 6.3210 16 Series C preferred stock 3 6.8290 22 3 6.8340 22 Class A common stock (3) 1,648 — 1,648 1,677 — 1,677 Class B common stock 245 1.6181 (4) 397 245 1.6228 (4) 398 Class C common stock 10 4.0000 40 10 4.0000 41 Total 2,129 2,161 (1) Figures in the table may not recalculate exactly due to rounding. As-converted class A common stock is calculated based on unrounded numbers. (2) The number of shares outstanding was less than one million. (3) Class A common stock shares outstanding reflect repurchases that settled on or before March 31, 2022 and September 30, 2021, respectively. (4) 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 U.S. retrospective responsibility plan, when the Company funds the U.S. litigation escrow account, the value of the Company’s class B common stock is subject to dilution through a downward adjustment to the conversion rate of the shares of class B common stock to shares of class A common stock. 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 series B and C preferred stock. The deposit and recovery have the same economic effect on earnings per share as repurchasing the Company’s class A common stock, because it reduces the class B common stock and the series B and C preferred stock conversion rates and consequently, reduces the as-converted class A common stock share count. See Note 5—U.S. and Europe Retrospective Responsibility Plans . The following table presents the reduction in the number of as-converted class B common stock after deposit into the U.S. litigation escrow account for the six months ended March 31, 2022. There was no comparable adjustment recorded for class B common stock for the six months ended March 31, 2021. Six Months Ended (in millions, except per share data) Reduction in equivalent number of class A common stock 1 Effective price per share (1) $ 217.61 Deposits under the U.S. retrospective responsibility plan $ 250 (1) Effective price per share is calculated using the volume-weighted average price of the Company’s class A common stock over a pricing period in accordance with the Company’s current certificate of incorporation. The following table presents the reduction in the number of as-converted series B and C preferred stock after the Company recovered VE territory covered losses through conversion rate adjustments: Six Months Ended Six Months Ended Series B Series C Series B Series C (in millions, except per share data) Reduction in equivalent number of class A common stock — (1) — (1) — (1) — (1) Effective price per share (2) $ 201.68 $ 201.68 $ 209.89 $ 209.89 Recovery through conversion rate adjustment $ 26 $ 3 $ 9 $ 6 (1) The reduction in equivalent number of shares of class A common stock was less than one million shares. (2) 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 preferred stock. Effective price per share for each fiscal year is calculated using the weighted-average effective prices of the respective adjustments made during the year. Common stock repurchases. The following table presents share repurchases in the open market: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in millions, except per share data) Shares repurchased in the open market (1) 15 8 34 17 Average repurchase price per share (2) $ 210.18 $ 208.65 $ 210.26 $ 205.05 Total cost (2) $ 2,949 $ 1,713 $ 7,053 $ 3,509 (1) Shares repurchased in the open market reflect repurchases that settled during the three and six months ended March 31, 2022 and 2021, respectively. All shares repurchased in the open market have been retired and constitute authorized but unissued shares. (2) Figures in the table may not recalculate exactly due to rounding. Average repurchase price per share and total cost are calculated based on unrounded numbers. In December 2021, the Company’s board of directors authorized a $12.0 billion share repurchase program (the “December 2021 Program”). Previously, in January 2021, the Company’s board of directors authorized an $8.0 billion share repurchase program. These authorizations have no expiration date. As of March 31, 2022, the Company’s repurchase program had remaining authorized funds of $9.8 billion. All share repurchase programs authorized prior to the December 2021 Program have been completed. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2022 | |
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. Participating securities include the Company’s series A, B and C preferred stock and restricted stock units (“RSUs”) that contain non-forfeitable rights to dividends or dividend equivalents. 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 series A, B and C 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 presents earnings per share for the three months ended March 31, 2022: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 2,819 1,654 $ 1.70 $ 3,647 2,142 (3) $ 1.70 Class B common stock 677 245 $ 2.76 $ 676 245 $ 2.75 Class C common stock 69 10 $ 6.82 $ 69 10 $ 6.81 Participating securities 82 Not presented Not presented $ 81 Not presented Not presented Net income $ 3,647 The following table presents earnings per share for the six months ended March 31, 2022: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 5,884 1,662 $ 3.54 $ 7,606 2,150 (3) $ 3.54 Class B common stock 1,409 245 $ 5.74 $ 1,407 245 $ 5.73 Class C common stock 143 10 $ 14.16 $ 143 10 $ 14.15 Participating securities 170 Not presented Not presented $ 169 Not presented Not presented Net income $ 7,606 The following table presents earnings per share for the three months ended March 31, 2021: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 2,342 1,695 $ 1.38 $ 3,026 2,193 (3) $ 1.38 Class B common stock 550 245 $ 2.24 $ 550 245 $ 2.24 Class C common stock 59 11 $ 5.52 $ 59 11 $ 5.52 Participating securities 75 Not presented Not presented $ 74 Not presented Not presented Net income $ 3,026 The following table presents earnings per share for the six months ended March 31, 2021: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 4,752 1,695 $ 2.80 $ 6,152 2,196 (3) $ 2.80 Class B common stock 1,117 245 $ 4.55 $ 1,116 245 $ 4.54 Class C common stock 120 11 $ 11.22 $ 120 11 $ 11.20 Participating securities 163 Not presented Not presented $ 163 Not presented Not presented Net income $ 6,152 (1) The weighted-average number of shares of as-converted class B common stock used in the income allocation was 397 million for the three months ended March 31, 2022 and 398 million for the six month ended March 31, 2022 and three and six months ended March 31, 2021. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 40 million for the three and six months ended March 31, 2022 and 43 million for the three and six months ended March 31, 2021. The weighted-average number of shares of preferred stock included within participating securities was 6 million of as-converted series A preferred stock for the three and six months ended March 31, 2022 and 12 million and 17 million of as-converted series A preferred stock for the three and six months ended March 31, 2021, respectively, 16 million of as-converted series B preferred stock for the three and six months ended March 31, 2022 and 2021, and 22 million of as-converted series C preferred stock for the three and six months ended March 31, 2022 and 2021. (2) Figures in the table may not recalculate exactly due to rounding. Basic and diluted earnings per share is calculated based on unrounded numbers. (3) Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The common stock equivalents are not material for the three and six months ended March 31, 2022 and 2021. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | Note 11—Share-based Compensation The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan, or the EIP, during the six months ended March 31, 2022: Granted Weighted-Average Grant Date Fair Value Weighted-Average Exercise Price Non-qualified stock options 961,570 $ 43.16 $ 200.86 Restricted stock units 2,922,004 $ 202.56 Performance-based shares (1) 440,722 $ 186.50 (1) Represents the maximum number of performance-based shares which could be earned. Related to the EIP, the Company recorded share-based compensation cost, net of estimated forfeitures, of $181 million and $148 million for the three months ended March 31, 2022 and 2021, respectively, and $302 million and $264 million for the six months ended March 31, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12—Income Taxes For the three and six months ended March 31, 2022, the effective income tax rates were 20% and 19%, respectively, and for the three and six months ended March 31, 2021, the effective income tax rates were 17%. The difference in the effective tax rates is primarily due to $66 million and $147 million of tax benefits recognized during the three and six months ended March 31, 2021, respectively, as a result of the conclusion of audits by taxing authorities. During the three and six months ended March 31, 2022, the Company’s gross unrecognized tax benefits increased by $65 million and $143 million, respectively. The Company’s net unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate, increased by $17 million and $46 million, respectively. The change in unrecognized tax benefits is primarily related to various tax positions across several jurisdictions. The Company’s tax filings are subject to examination by U.S. federal, state and foreign taxing authorities. The timing and outcome of the final resolutions of the various ongoing income tax examinations are highly uncertain. It is not reasonably possible to estimate the increase or decrease in unrecognized tax benefits within the next twelve months. |
Legal Matters
Legal Matters | 6 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Note 13—Legal Matters The Company is party to various legal and regulatory proceedings. Some of these proceedings involve complex claims that are subject to substantial uncertainties and unascertainable damages. Accordingly, except as disclosed, the Company has not established reserves or ranges of possible loss related to these proceedings, as at this time in the proceedings, the matters do not relate to a probable loss and/or the amount or range of losses are not reasonably estimable. Although the Company believes that it has strong defenses for the litigation and regulatory proceedings described below, it could, in the future, incur judgments or fines or enter into settlements of claims that could have a material adverse effect on the Company’s financial position, results of operations or cash flows. From time to time, the Company may engage in settlement discussions or mediations with respect to one or more of its outstanding litigation matters, either on its own behalf or collectively with other parties. The litigation accrual is an estimate and is based on management’s understanding of its litigation profile, the specifics of each case, advice of counsel to the extent appropriate and management’s best estimate of incurred loss as of the balance sheet date. The following table summarizes the activity related to accrued litigation: Six Months Ended 2022 2021 (in millions) Balance at beginning of period $ 983 $ 914 Provision for uncovered legal matters 1 3 Provision for covered legal matters 150 9 Payments for legal matters (365) (40) Balance at end of period $ 769 $ 886 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. 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 Company’s litigation committee. The total accrual related to the U.S. covered litigation could be either higher or lower than the escrow account balance. See further discussion below under U.S. Covered Litigation and Note 5—U.S. and Europe Retrospective Responsibility Plans. The following table summarizes the accrual activity related to U.S. covered litigation: Six Months Ended 2022 2021 (in millions) Balance at beginning of period $ 881 $ 888 Provision for interchange multidistrict litigation 145 — Payments for U.S. covered litigation (262) (7) Balance at end of period $ 764 $ 881 During the six months ended March 31, 2022, the Company recorded an additional accrual of $145 million and deposited $250 million into the U.S. litigation escrow account to address claims of certain merchants who opted out of the Amended Settlement Agreement. During the six months ended March 31, 2022, the Company paid $262 million for U.S. covered litigation. The U.S. covered litigation accrual balance is consistent with the Company’s estimate of its share of the lower end of a probable and reasonably estimable loss with respect to U.S. covered litigation. While this estimate is consistent with the Company’s view of the current status of the litigation, the probable and reasonably estimable loss or range of such loss could materially vary based on developments in the litigation. The Company will continue to consider and reevaluate this estimate in light of the substantial uncertainties with respect to the litigation. The Company is unable to estimate a potential loss or range of loss, if any, at trial if negotiated resolutions cannot be reached. 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 series B and C 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 5—U.S. and Europe Retrospective Responsibility Plans . The following table summarizes the accrual activity related to VE territory covered litigation: Six Months Ended 2022 2021 (in millions) Balance at beginning of period $ 102 $ 21 Provision for VE territory covered litigation 5 9 Payments for VE territory covered litigation (102) (28) Balance at end of period $ 5 $ 2 U.S. Covered Litigation Interchange Multidistrict Litigation (MDL) - Individual Merchant Actions Visa has reached settlements with a number of merchants representing approximately 50% of the Visa-branded payment card sales volume of merchants who opted out of the Amended Settlement Agreement with the Damages Class plaintiffs. VE Territory Covered Litigation Europe Merchant Litigation Since July 2013, in excess of 850 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 other Visa subsidiaries in the UK, Belgium, Poland and Israel primarily 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 has settled the claims asserted by over 150 Merchants, leaving more than 650 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 26, 2021, with respect to certain pending Merchant claims, the UK Competition Appeal Tribunal (CAT) found that UK and certain other domestic and intra-European Economic Area consumer interchange fees before the introduction of the Interchange Fee Regulation (IFR) were a restriction of competition, but that the question of whether those fees, along with inter-European Economic Area fees, are a restriction of competition after the introduction of the IFR would need to be resolved at trial. Whether any interchange fees are exempt from the finding of restriction under applicable law and the assessment of damages, if any, will also need to be considered at trial. On February 1, 2022, the UK Court of Appeal granted claimants permission to appeal the CAT’s ruling and an appeal hearing is scheduled for July 2022. Other Litigation Pulse Network On April 5, 2022, the U.S. Court of Appeals for the Fifth Circuit reversed, in part, the district court’s summary judgment decision in Visa's favor, finding that Pulse has standing to pursue certain of its claims, and remanded the case to the district court for further proceedings. German ATM Litigation Between December 2021 and March 2022, Visa was served with claims in Germany brought by German savings banks against Visa Europe and Visa Inc. The banks claim that Visa’s ATM rules prohibiting the charging of access fees on domestic cash withdrawals are anti-competitive and they are seeking damages. Foreign Currency Exchange Rate Litigation On December 6, 2021, an amended complaint making similar allegations regarding the setting of foreign exchange rates was filed by several individuals on behalf of a nationwide class, and/or California, Washington, Massachusetts or New Jersey subclasses, of cardholders who made a transaction in a foreign currency. The amended complaint asserts claims for unjust enrichment and restitution as well as violations of the California Unfair Competition Law, the Washington Consumer Protection Act, the Massachusetts Consumer Protection Act, and the New Jersey Consumer Fraud Act. On January 19, 2022, Visa filed a motion to dismiss the amended complaint. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
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 unaudited consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation. During the quarter ended March 31, 2022, economic sanctions were imposed on Russia, impacting Visa and its clients. The extent and severity of the sanctions impacted the Company’s operations and a reduction in Ruble liquidity impacted the Company’s ability to manage operational impact and related foreign currency risk. In March 2022, the Company announced it was suspending its operations in Russia. In addition, the Company deconsolidated its Russian subsidiary, resulting in a pre-tax loss of $35 million, which is included in general and administrative expense on the consolidated statements of operations. The accompanying unaudited consolidated financial statements are presented in accordance with 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, 2021 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. The results of operations for interim periods are not necessarily indicative of results for the full year. |
Use of estimates | Use of estimates. The preparation of the accompanying unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates may change as new events occur and additional information is obtained, and will be recognized in the period in which such changes occur. Future actual results could differ materially from these estimates. |
Recently adopted accounting pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance and making other minor improvements. The Company adopted this guidance effective October 1, 2021. The adoption did not have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for purposes of applying |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Allocation | The following table summarizes the purchase price allocation for Tink: Purchase Price Allocation Weighted-Average Useful Life (in millions) (in years) Technology $ 245 4 Customer relationships 90 6 Deferred tax liabilities (71) Other net assets acquired (liabilities assumed) 22 Goodwill 1,577 Total $ 1,863 5 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate the Company’s net revenues by revenue category and by geography: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in millions) Service revenues $ 3,521 $ 2,845 $ 6,714 $ 5,522 Data processing revenues 3,480 2,996 7,094 6,029 International transaction revenues 2,208 1,488 4,382 2,939 Other revenues 474 392 923 776 Client incentives (2,494) (1,992) (4,865) (3,850) Net revenues $ 7,189 $ 5,729 $ 14,248 $ 11,416 Three Months Ended Six Months Ended 2022 2021 2022 2021 (in millions) U.S. $ 3,079 $ 2,683 $ 6,257 $ 5,350 International 4,110 3,046 7,991 6,066 Net revenues $ 7,189 $ 5,729 $ 14,248 $ 11,416 |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows: March 31, September 30, (in millions) Cash and cash equivalents $ 12,299 $ 16,487 Restricted cash and restricted cash equivalents: U.S. litigation escrow 882 894 Customer collateral 2,309 2,260 Prepaid expenses and other current assets 1,026 158 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 16,516 $ 19,799 |
U.S. and Europe Retrospective_2
U.S. and Europe Retrospective Responsibility Plans (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Retrospective Responsibility Plan [Abstract] | |
Changes in the U.S. litigation escrow account | The following table presents the changes in the restricted cash equivalents—U.S. litigation escrow account: Six Months Ended 2022 2021 (in millions) Balance at beginning of period $ 894 $ 901 Deposits into the litigation escrow account 250 — Payments to opt-out merchants (1) and interest earned on escrow funds (262) (7) Balance at end of period $ 882 $ 894 (1) These payments are associated with the interchange multidistrict litigation. See Note 13—Legal Matters . |
Changes in Preferred Stock and Right to Recover for Covered Losses | The following table presents the activities related to VE territory covered losses in preferred stock and “right to recover for covered losses” within stockholders’ equity: Preferred Stock Right to Recover for Covered Losses Series B Series C (in millions) Balance as of September 30, 2021 $ 1,071 $ 1,523 $ (133) VE territory covered losses incurred (1) — — (16) Recovery through conversion rate adjustment (26) (3) 29 Balance as of March 31, 2022 $ 1,045 $ 1,520 $ (120) Preferred Stock Right to Recover for Covered Losses Series B Series C (in millions) Balance as of September 30, 2020 $ 1,106 $ 1,543 $ (39) VE territory covered losses incurred (1) — — (17) Recovery through conversion rate adjustment (9) (6) 15 Balance as of March 31, 2021 $ 1,097 $ 1,537 $ (41) (1) VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 13—Legal Matters . |
Preferred Stock As-Converted Value and Book Value | The following table presents the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred stock recorded in stockholders’ equity within the Company’s consolidated balance sheets: March 31, 2022 September 30, 2021 As-converted Value of Preferred Stock (1),(2) Book Value of Preferred Stock (1) As-converted Value of Preferred Stock (1),(3) Book Value of Preferred Stock (1) (in millions) Series B preferred stock $ 3,450 $ 1,045 $ 3,493 $ 1,071 Series C preferred stock 4,781 1,520 4,806 1,523 Total 8,231 2,565 8,299 2,594 Less: right to recover for covered losses (120) (120) (133) (133) Total recovery for covered losses available $ 8,111 $ 2,445 $ 8,166 $ 2,461 (1) Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers. (2) As of March 31, 2022, the as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the series B and C preferred stock outstanding, respectively; (b) 6.271 and 6.829, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) $221.77, Visa’s class A common stock closing stock price. (3) As of September 30, 2021, the as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the series B and C preferred stock outstanding, respectively; (b) 6.321 and 6.834, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) $222.75, Visa’s class A common stock closing stock price. |
Fair Value Measurements and I_2
Fair Value Measurements and Investments (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 Level 1 Level 2 March 31, September 30, March 31, September 30, (in millions) Assets Cash equivalents and restricted cash equivalents: Money market funds $ 9,448 $ 11,779 $ — $ — U.S. government-sponsored debt securities — — 418 100 U.S. Treasury securities 200 2,400 — — Investment securities: Marketable equity securities 363 490 — — U.S. government-sponsored debt securities — — 110 245 U.S. Treasury securities 3,043 2,985 — — Other current and non-current assets: Money market funds 4 4 — — Derivative instruments — — 465 410 Total $ 13,058 $ 17,658 $ 993 $ 755 Liabilities Accrued compensation and benefits: Deferred compensation liability $ 179 $ 167 $ — $ — Accrued and other liabilities: Derivative instruments — — 226 109 Total $ 179 $ 167 $ 226 $ 109 |
Schedule of Non-Marketable Equity Securities | The following table summarizes the total carrying value of the Company’s non-marketable equity securities held as of March 31, 2022 including cumulative unrealized gains and losses: March 31, (in millions) Initial cost basis $ 908 Adjustments: Upward adjustments 806 Downward adjustments (including impairment) (66) Carrying amount, end of period $ 1,648 Unrealized gains and losses included in the carrying value of the Company’s non-marketable equity securities still held as of March 31, 2022 and 2021 were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in millions) Upward adjustments $ 2 $ 129 $ 226 $ 143 Downward adjustments (including impairment) $ (53) $ — $ (53) $ (2) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company had outstanding debt as follows: March 31, September 30, Effective Interest Rate (1) (in millions, except percentages) Commercial paper $ 300 $ — 0.35 % 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 % 1.90% Senior Notes due April 2027 1,500 1,500 2.02 % 0.75% Senior Notes due August 2027 500 500 0.84 % 2.75% Senior Notes due September 2027 750 750 2.91 % 2.05% Senior Notes due April 2030 1,500 1,500 2.13 % 1.10% Senior Notes due February 2031 1,000 1,000 1.20 % 4.15% Senior Notes due December 2035 1,500 1,500 4.23 % 2.70% Senior Notes due April 2040 1,000 1,000 2.80 % 4.30% Senior Notes due December 2045 3,500 3,500 4.37 % 3.65% Senior Notes due September 2047 750 750 3.73 % 2.00% Senior Notes due August 2050 1,750 1,750 2.09 % Total debt 21,300 21,000 Unamortized discounts and debt issuance costs (154) (161) Hedge accounting fair value adjustments (2) (119) 138 Total carrying value of debt $ 21,027 $ 20,977 Reported as: Current maturities of debt $ 3,548 $ 999 Long-term debt 17,479 19,978 Total carrying value of debt $ 21,027 $ 20,977 (1) Effective interest rates disclosed do not reflect hedge accounting adjustments. |
Settlement Guarantee Manageme_2
Settlement Guarantee Management (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Settlement Guarantee Management [Abstract] | |
Schedule of Customer Collateral | The Company held the following collateral to manage settlement exposure: March 31, September 30, (in millions) Restricted cash and restricted cash equivalents $ 2,309 $ 2,260 Pledged securities at market value 270 254 Letters of credit 1,604 1,518 Guarantees 793 758 Total $ 4,976 $ 4,790 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class | As-converted class A common stock. The number of shares of each series and class, and the number of shares of class A common stock on an as-converted basis were as follows: March 31, 2022 September 30, 2021 Shares Conversion Rate Into As-converted Class A Common Stock (1) Shares Conversion Rate Into As-converted Class A Common Stock (1) (in millions, except conversion rate) Series A preferred stock — (2) 100.0000 6 — (2) 100.0000 7 Series B preferred stock 2 6.2710 16 2 6.3210 16 Series C preferred stock 3 6.8290 22 3 6.8340 22 Class A common stock (3) 1,648 — 1,648 1,677 — 1,677 Class B common stock 245 1.6181 (4) 397 245 1.6228 (4) 398 Class C common stock 10 4.0000 40 10 4.0000 41 Total 2,129 2,161 (1) Figures in the table may not recalculate exactly due to rounding. As-converted class A common stock is calculated based on unrounded numbers. (2) The number of shares outstanding was less than one million. (3) Class A common stock shares outstanding reflect repurchases that settled on or before March 31, 2022 and September 30, 2021, respectively. (4) 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 the reduction in the number of as-converted class B common stock after deposit into the U.S. litigation escrow account for the six months ended March 31, 2022. There was no comparable adjustment recorded for class B common stock for the six months ended March 31, 2021. Six Months Ended (in millions, except per share data) Reduction in equivalent number of class A common stock 1 Effective price per share (1) $ 217.61 Deposits under the U.S. retrospective responsibility plan $ 250 |
Effect of VE Territory Covered Losses Recovery on the Company Repurchasing its Common Stock | The following table presents the reduction in the number of as-converted series B and C preferred stock after the Company recovered VE territory covered losses through conversion rate adjustments: Six Months Ended Six Months Ended Series B Series C Series B Series C (in millions, except per share data) Reduction in equivalent number of class A common stock — (1) — (1) — (1) — (1) Effective price per share (2) $ 201.68 $ 201.68 $ 209.89 $ 209.89 Recovery through conversion rate adjustment $ 26 $ 3 $ 9 $ 6 (1) The reduction in equivalent number of shares of class A common stock was less than one million shares. (2) 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 preferred stock. Effective price per share for each fiscal year is calculated using the weighted-average effective prices of the respective adjustments made during the year. |
Share Repurchase Program Disclosure | Common stock repurchases. The following table presents share repurchases in the open market: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in millions, except per share data) Shares repurchased in the open market (1) 15 8 34 17 Average repurchase price per share (2) $ 210.18 $ 208.65 $ 210.26 $ 205.05 Total cost (2) $ 2,949 $ 1,713 $ 7,053 $ 3,509 (1) Shares repurchased in the open market reflect repurchases that settled during the three and six months ended March 31, 2022 and 2021, respectively. All shares repurchased in the open market have been retired and constitute authorized but unissued shares. (2) Figures in the table may not recalculate exactly due to rounding. Average repurchase price per share and total cost are calculated based on unrounded numbers. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents earnings per share for the three months ended March 31, 2022: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 2,819 1,654 $ 1.70 $ 3,647 2,142 (3) $ 1.70 Class B common stock 677 245 $ 2.76 $ 676 245 $ 2.75 Class C common stock 69 10 $ 6.82 $ 69 10 $ 6.81 Participating securities 82 Not presented Not presented $ 81 Not presented Not presented Net income $ 3,647 The following table presents earnings per share for the six months ended March 31, 2022: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 5,884 1,662 $ 3.54 $ 7,606 2,150 (3) $ 3.54 Class B common stock 1,409 245 $ 5.74 $ 1,407 245 $ 5.73 Class C common stock 143 10 $ 14.16 $ 143 10 $ 14.15 Participating securities 170 Not presented Not presented $ 169 Not presented Not presented Net income $ 7,606 The following table presents earnings per share for the three months ended March 31, 2021: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 2,342 1,695 $ 1.38 $ 3,026 2,193 (3) $ 1.38 Class B common stock 550 245 $ 2.24 $ 550 245 $ 2.24 Class C common stock 59 11 $ 5.52 $ 59 11 $ 5.52 Participating securities 75 Not presented Not presented $ 74 Not presented Not presented Net income $ 3,026 The following table presents earnings per share for the six months ended March 31, 2021: Basic Earnings Per Share Diluted Earnings Per Share Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) Income Allocation (A) (1) Weighted- Earnings per Share = (A)/(B) (2) (in millions, except per share data) Class A common stock $ 4,752 1,695 $ 2.80 $ 6,152 2,196 (3) $ 2.80 Class B common stock 1,117 245 $ 4.55 $ 1,116 245 $ 4.54 Class C common stock 120 11 $ 11.22 $ 120 11 $ 11.20 Participating securities 163 Not presented Not presented $ 163 Not presented Not presented Net income $ 6,152 (1) The weighted-average number of shares of as-converted class B common stock used in the income allocation was 397 million for the three months ended March 31, 2022 and 398 million for the six month ended March 31, 2022 and three and six months ended March 31, 2021. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 40 million for the three and six months ended March 31, 2022 and 43 million for the three and six months ended March 31, 2021. The weighted-average number of shares of preferred stock included within participating securities was 6 million of as-converted series A preferred stock for the three and six months ended March 31, 2022 and 12 million and 17 million of as-converted series A preferred stock for the three and six months ended March 31, 2021, respectively, 16 million of as-converted series B preferred stock for the three and six months ended March 31, 2022 and 2021, and 22 million of as-converted series C preferred stock for the three and six months ended March 31, 2022 and 2021. (2) Figures in the table may not recalculate exactly due to rounding. Basic and diluted earnings per share is calculated based on unrounded numbers. (3) Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The common stock equivalents are not material for the three and six months ended March 31, 2022 and 2021. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan, or the EIP, during the six months ended March 31, 2022: Granted Weighted-Average Grant Date Fair Value Weighted-Average Exercise Price Non-qualified stock options 961,570 $ 43.16 $ 200.86 Restricted stock units 2,922,004 $ 202.56 Performance-based shares (1) 440,722 $ 186.50 (1) Represents the maximum number of performance-based shares which could be earned. |
Legal Matters (Tables)
Legal Matters (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | The following table summarizes the activity related to accrued litigation: Six Months Ended 2022 2021 (in millions) Balance at beginning of period $ 983 $ 914 Provision for uncovered legal matters 1 3 Provision for covered legal matters 150 9 Payments for legal matters (365) (40) Balance at end of period $ 769 $ 886 The following table summarizes the accrual activity related to U.S. covered litigation: Six Months Ended 2022 2021 (in millions) Balance at beginning of period $ 881 $ 888 Provision for interchange multidistrict litigation 145 — Payments for U.S. covered litigation (262) (7) Balance at end of period $ 764 $ 881 The following table summarizes the accrual activity related to VE territory covered litigation: Six Months Ended 2022 2021 (in millions) Balance at beginning of period $ 102 $ 21 Provision for VE territory covered litigation 5 9 Payments for VE territory covered litigation (102) (28) Balance at end of period $ 5 $ 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)country | |
Accounting Policies [Abstract] | |
Number of countries in which Visa operates (more than) | country | 200 |
Pre-tax loss from Russia | $ | $ 35 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | Mar. 10, 2022 | Dec. 20, 2021 | Mar. 31, 2022 | Sep. 30, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 18,143 | $ 15,958 | ||
The Currency Cloud Group Limited | ||||
Business Acquisition [Line Items] | ||||
Total consideration | $ 893 | |||
Amount allocated to technology, intangible assets and deferred tax liabilities | 150 | |||
Goodwill | $ 743 | |||
Tink | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,577 | |||
Business acquisition, percent acquired | 100.00% | |||
Total consideration, cash | $ 1,900 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Millions | Mar. 10, 2022 | Mar. 31, 2022 | Sep. 30, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 18,143 | $ 15,958 | |
Tink | |||
Business Acquisition [Line Items] | |||
Deferred tax liabilities | $ (71) | ||
Other net assets acquired (liabilities assumed) | 22 | ||
Goodwill | 1,577 | ||
Total consideration | $ 1,863 | ||
Weighted-Average Useful Life | 5 years | ||
Tink | Technology | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | $ 245 | ||
Weighted-Average Useful Life | 4 years | ||
Tink | Customer relationships | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | $ 90 | ||
Weighted-Average Useful Life | 6 years |
Revenues - Schedule of Net Reve
Revenues - Schedule of Net Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 7,189 | $ 5,729 | $ 14,248 | $ 11,416 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 3,079 | 2,683 | 6,257 | 5,350 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 4,110 | 3,046 | 7,991 | 6,066 |
Service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 3,521 | 2,845 | 6,714 | 5,522 |
Data processing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 3,480 | 2,996 | 7,094 | 6,029 |
International transaction revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 2,208 | 1,488 | 4,382 | 2,939 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 474 | 392 | 923 | 776 |
Client incentives | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ (2,494) | $ (1,992) | $ (4,865) | $ (3,850) |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 12,299 | $ 16,487 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 16,516 | 19,799 | $ 19,558 | $ 19,171 |
U.S. litigation escrow | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents: | 882 | 894 | ||
Customer collateral | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents: | 2,309 | 2,260 | ||
Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents: | $ 1,026 | $ 158 |
U.S. and Europe Retrospective_3
U.S. and Europe Retrospective Responsibility Plans - Changes in the U.S. Litigation Escrow Account (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Escrow Account [Roll Forward] | ||
Balance at beginning of period | $ 894 | $ 901 |
Deposits into the litigation escrow account | 250 | 0 |
Balance at end of period | 882 | 894 |
Interest Income | Opt-out Merchants | ||
Escrow Account [Roll Forward] | ||
Payments to opt-out merchants and interest earned on escrow funds | $ (262) | $ (7) |
U.S. and Europe Retrospective_4
U.S. and Europe Retrospective Responsibility Plans - Additional Details (Details) € in Millions | 6 Months Ended |
Mar. 31, 2022EUR (€) | |
Retrospective Responsibility Plan [Abstract] | |
VE covered loss, maximum amount of loss to allow adjustment of conversion rate during six-month period | € 20 |
U.S. and Europe Retrospective_5
U.S. and Europe Retrospective Responsibility Plans - Changes in Preferred Stock and Right to Recover Covered Losses (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022USD ($)$ / sharesshares | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)$ / sharesshares | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($)$ / sharesshares | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 36,194 | $ 37,679 | $ 37,589 | $ 36,210 | |
VE territory covered losses incurred | (9) | (7) | (16) | (17) | |
Recovery through conversion rate adjustment | 0 | 0 | |||
Ending balance | 35,989 | 37,696 | 35,989 | 37,696 | |
As-converted Value of Preferred Stock | 8,231 | 8,231 | $ 8,299 | ||
Book Value of Preferred Stock, Total | 2,565 | 2,565 | 2,594 | ||
Less: right to recover for covered losses | (120) | (120) | (133) | ||
Preferred Stock, As-Converted Value, Total recovery for covered losses available | 8,111 | 8,111 | 8,166 | ||
Book Value of Preferred of Stock, Total recovery for covered losses available | $ 2,445 | $ 2,445 | $ 2,461 | ||
Share price (in dollars per share) | $ / shares | $ 221.77 | $ 221.77 | $ 222.75 | ||
Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 2,995 | 3,683 | $ 3,080 | 5,086 | |
Recovery through conversion rate adjustment | (29) | (15) | |||
Ending balance | 2,987 | 3,347 | 2,987 | 3,347 | |
Right to Recover for Covered Losses | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | (111) | (34) | (133) | (39) | |
VE territory covered losses incurred | (9) | (7) | (16) | (17) | |
Recovery through conversion rate adjustment | 29 | 15 | |||
Ending balance | (120) | (41) | (120) | (41) | |
Series B preferred stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Recovery through conversion rate adjustment | 26 | 9 | |||
As-converted Value of Preferred Stock | 3,450 | 3,450 | $ 3,493 | ||
Book Value of Preferred Stock | $ 1,045 | $ 1,045 | $ 1,071 | ||
Preferred stock, shares outstanding (in shares) | shares | 2 | 2 | 2 | ||
Preferred stock, conversion rate | 6.2710 | 6.2710 | 6.3210 | ||
Series B preferred stock | Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 1,071 | 1,106 | |||
VE territory covered losses incurred | 0 | 0 | |||
Recovery through conversion rate adjustment | (26) | (9) | |||
Ending balance | $ 1,045 | 1,097 | 1,045 | 1,097 | |
Series C preferred stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Recovery through conversion rate adjustment | 3 | 6 | |||
As-converted Value of Preferred Stock | 4,781 | 4,781 | $ 4,806 | ||
Book Value of Preferred Stock | $ 1,520 | $ 1,520 | $ 1,523 | ||
Preferred stock, shares outstanding (in shares) | shares | 3 | 3 | 3 | ||
Preferred stock, conversion rate | 6.8290 | 6.8290 | 6.834 | ||
Series C preferred stock | Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 1,523 | 1,543 | |||
VE territory covered losses incurred | 0 | 0 | |||
Recovery through conversion rate adjustment | (3) | (6) | |||
Ending balance | $ 1,520 | $ 1,537 | $ 1,520 | $ 1,537 |
Fair Value Measurements and I_3
Fair Value Measurements and Investments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Level 1 | ||
Assets | ||
Total | $ 13,058 | $ 17,658 |
Liabilities | ||
Deferred compensation liability | 179 | 167 |
Derivative instruments | 0 | 0 |
Total | 179 | 167 |
Level 1 | Money market funds | ||
Assets | ||
Cash equivalents and restricted cash equivalents: | 9,448 | 11,779 |
Other current and non-current assets: | 4 | 4 |
Level 1 | Marketable equity securities | ||
Assets | ||
Investment securities | 363 | 490 |
Level 1 | U.S. government-sponsored debt securities | ||
Assets | ||
Cash equivalents and restricted cash equivalents: | 0 | 0 |
Investment securities | 0 | 0 |
Level 1 | U.S. Treasury securities | ||
Assets | ||
Cash equivalents and restricted cash equivalents: | 200 | 2,400 |
Investment securities | 3,043 | 2,985 |
Level 1 | Derivative instruments | ||
Assets | ||
Other current and non-current assets: | 0 | 0 |
Level 2 | ||
Assets | ||
Total | 993 | 755 |
Liabilities | ||
Deferred compensation liability | 0 | 0 |
Derivative instruments | 226 | 109 |
Total | 226 | 109 |
Level 2 | Money market funds | ||
Assets | ||
Cash equivalents and restricted cash equivalents: | 0 | 0 |
Other current and non-current assets: | 0 | 0 |
Level 2 | Marketable equity securities | ||
Assets | ||
Investment securities | 0 | 0 |
Level 2 | U.S. government-sponsored debt securities | ||
Assets | ||
Cash equivalents and restricted cash equivalents: | 418 | 100 |
Investment securities | 110 | 245 |
Level 2 | U.S. Treasury securities | ||
Assets | ||
Cash equivalents and restricted cash equivalents: | 0 | 0 |
Investment securities | 0 | 0 |
Level 2 | Derivative instruments | ||
Assets | ||
Other current and non-current assets: | $ 465 | $ 410 |
Fair Value Measurements and I_4
Fair Value Measurements and Investments - Additional Information (Detail) - USD ($) $ in Millions | Feb. 01, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt securities due within one year | $ 1,500 | $ 1,500 | ||||
Debt securities due within one to five years | 2,300 | 2,300 | ||||
Unrealized gains (losses) on equity securities held as of the end of the period | (156) | $ 147 | 16 | $ 176 | ||
Impairment of indefinite-lived intangible assets and goodwill | $ 0 | |||||
Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Carrying value of debt | 20,700 | 20,700 | $ 21,000 | |||
Estimated Fair Value | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Estimated fair value of debt | $ 20,800 | $ 20,800 | $ 22,500 |
Fair Value Measurements and I_5
Fair Value Measurements and Investments - Schedule of Non-Marketable Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||||
Initial cost basis | $ 908 | $ 908 | ||
Upward adjustments | 806 | 806 | ||
Downward adjustments (including impairment) | (66) | (66) | ||
Carrying amount, end of period | 1,648 | 1,648 | ||
Upward adjustments | 2 | $ 129 | 226 | $ 143 |
Downward adjustments (including impairment) | $ (53) | $ 0 | $ (53) | $ (2) |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Unamortized discounts and debt issuance costs | $ (154) | $ (161) |
Hedge accounting fair value adjustments | (119) | 138 |
Total carrying value of debt | 21,027 | 20,977 |
Current maturities of debt | 3,548 | 999 |
Long-term debt | $ 17,479 | 19,978 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Effective interest rate (percent) | 0.35% | |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Commercial paper | $ 300 | 0 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 21,300 | 21,000 |
Senior Notes | 2.15% Senior Notes due September 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,000 | 1,000 |
Effective interest rate (percent) | 2.30% | |
Stated interest rate (percent) | 2.15% | |
Senior Notes | 2.80% Senior Notes due December 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2,250 | 2,250 |
Effective interest rate (percent) | 2.89% | |
Stated interest rate (percent) | 2.80% | |
Senior Notes | 3.15% Senior Notes due December 2025 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 4,000 | 4,000 |
Effective interest rate (percent) | 3.26% | |
Stated interest rate (percent) | 3.15% | |
Senior Notes | 1.90% Senior Notes due April 2027 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,500 | 1,500 |
Effective interest rate (percent) | 2.02% | |
Stated interest rate (percent) | 1.90% | |
Senior Notes | 0.75% Senior Notes due August 2027 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 500 | 500 |
Effective interest rate (percent) | 0.84% | |
Stated interest rate (percent) | 0.75% | |
Senior Notes | 2.75% Senior Notes due September 2027 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 750 | 750 |
Effective interest rate (percent) | 2.91% | |
Stated interest rate (percent) | 2.75% | |
Senior Notes | 2.05% Senior Notes due April 2030 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,500 | 1,500 |
Effective interest rate (percent) | 2.13% | |
Stated interest rate (percent) | 2.05% | |
Senior Notes | 1.10% Senior Notes due February 2031 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,000 | 1,000 |
Effective interest rate (percent) | 1.20% | |
Stated interest rate (percent) | 1.10% | |
Senior Notes | 4.15% Senior Notes due December 2035 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,500 | 1,500 |
Effective interest rate (percent) | 4.23% | |
Stated interest rate (percent) | 4.15% | |
Senior Notes | 2.70% Senior Notes due April 2040 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,000 | 1,000 |
Effective interest rate (percent) | 2.80% | |
Stated interest rate (percent) | 2.70% | |
Senior Notes | 4.30% Senior Notes due December 2045 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 3,500 | 3,500 |
Effective interest rate (percent) | 4.37% | |
Stated interest rate (percent) | 4.30% | |
Senior Notes | 3.65% Senior Notes due September 2047 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 750 | 750 |
Effective interest rate (percent) | 3.73% | |
Stated interest rate (percent) | 3.65% | |
Senior Notes | 2.00% Senior Notes due August 2050 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,750 | $ 1,750 |
Effective interest rate (percent) | 2.09% | |
Stated interest rate (percent) | 2.00% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Apr. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | |||
Proceeds from issuance of commercial paper | $ 300 | $ 0 | |
Subsequent Event | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of commercial paper | $ 650 | ||
Repayments of commercial paper | $ 650 | ||
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Commercial paper, maximum borrowing capacity | $ 3,000 | ||
Credit agreement term | 397 days |
Settlement Guarantee Manageme_3
Settlement Guarantee Management - Additional Information (Details) $ in Billions | 6 Months Ended |
Mar. 31, 2022USD ($) | |
Settlement Guarantee Management [Abstract] | |
Maximum settlement exposure | $ 112.7 |
Average daily settlement exposure | $ 71.3 |
Settlement Guarantee Manageme_4
Settlement Guarantee Management - Collateral (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Settlement Guarantee Management [Abstract] | ||
Restricted cash and restricted cash equivalents | $ 2,309 | $ 2,260 |
Pledged securities at market value | 270 | 254 |
Letters of credit | 1,604 | 1,518 |
Guarantees | 793 | 758 |
Total | $ 4,976 | $ 4,790 |
Stockholders' Equity - Number o
Stockholders' Equity - Number of Shares of Class A Common Shares Outstanding on an As-Converted Basis (Detail) shares in Millions | Mar. 31, 2022shares | Sep. 30, 2021shares |
Schedule of Common Stock as Converted [Line Items] | ||
As-converted Class A Common Stock (in shares) | 2,129 | 2,161 |
Series A preferred stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, conversion rate into Class A Common Stock | 100 | 100 |
As-converted Class A Common Stock (in shares) | 6 | 7 |
Series B preferred stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 2 | 2 |
Preferred stock, conversion rate into Class A Common Stock | 6.2710 | 6.3210 |
As-converted Class A Common Stock (in shares) | 16 | 16 |
Series C preferred stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 3 | 3 |
Preferred stock, conversion rate into Class A Common Stock | 6.8290 | 6.834 |
As-converted Class A Common Stock (in shares) | 22 | 22 |
Class A common stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Common stock, shares outstanding (in shares) | 1,648 | 1,677 |
As-converted Class A Common Stock (in shares) | 1,648 | 1,677 |
Class B common stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Common stock, shares outstanding (in shares) | 245 | 245 |
Common stock, conversion rate into Class A Common Stock | 1.6181 | 1.6228 |
As-converted Class A Common Stock (in shares) | 397 | 398 |
Class C common stock | ||
Schedule of Common Stock as Converted [Line Items] | ||
Common stock, shares outstanding (in shares) | 10 | 10 |
Common stock, conversion rate into Class A Common Stock | 4 | 4 |
As-converted Class A Common Stock (in shares) | 40 | 41 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of As-Converted Class B Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | ||
Reduction in equivalent number of as-converted shares of class A common stock (in shares) | 1 | |
Effective price per share (in dollars per share) | $ 217.61 | |
Deposits under the U.S. retrospective responsibility plan | $ 250 | $ 0 |
Stockholders' Equity - Effect o
Stockholders' Equity - Effect of VE Territory Covered Losses Through Conversion Rate Adjustments (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Conversion of Stock [Line Items] | ||
Recovery through conversion rate adjustment | $ 0 | $ 0 |
Series B preferred stock | ||
Conversion of Stock [Line Items] | ||
Reduction in equivalent number of as-converted shares of class A common stock (in shares) | 0 | 0 |
Effective price per share (in dollars per share) | $ 201.68 | $ 209.89 |
Recovery through conversion rate adjustment | $ 26 | $ 9 |
Series C preferred stock | ||
Conversion of Stock [Line Items] | ||
Reduction in equivalent number of as-converted shares of class A common stock (in shares) | 0 | 0 |
Effective price per share (in dollars per share) | $ 201.68 | $ 209.89 |
Recovery through conversion rate adjustment | $ 3 | $ 6 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases in the Open Market (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Total cost | $ 2,949 | $ 1,713 | $ 7,053 | $ 3,509 |
Class A common stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased in the open market (in shares) | 15 | 8 | 34 | 17 |
Average repurchase price per share (in dollars per share) | $ 210.18 | $ 208.65 | $ 210.26 | $ 205.05 |
Total cost | $ 2,949 | $ 1,713 | $ 7,053 | $ 3,509 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Apr. 22, 2022 | Dec. 31, 2021 | Jan. 31, 2021 | |
Stockholders Equity Note [Line Items] | |||||||
Share repurchase program | $ 12,000 | $ 8,000 | |||||
Share repurchase programs authorized | $ 9,800 | $ 9,800 | |||||
Cash dividends declared and paid, at a quarterly amount per Class A share | $ 802 | $ 701 | $ 1,611 | $ 1,404 | |||
Subsequent Event | Class A common stock | |||||||
Stockholders Equity Note [Line Items] | |||||||
Quarterly cash dividend (in dollars per share) | $ 0.375 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income | $ 3,647 | $ 3,026 | $ 7,606 | $ 6,152 |
Class A common stock | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Income Allocation - Basic | $ 2,819 | $ 2,342 | $ 5,884 | $ 4,752 |
Weighted- Average Shares Outstanding - Basic (in shares) | 1,654 | 1,695 | 1,662 | 1,695 |
Earnings per Share - Basic (in dollars per share) | $ 1.70 | $ 1.38 | $ 3.54 | $ 2.80 |
Income Allocation - Diluted | $ 3,647 | $ 3,026 | $ 7,606 | $ 6,152 |
Weighted- Average Shares Outstanding - Diluted (in shares) | 2,142 | 2,193 | 2,150 | 2,196 |
Earnings per Share - Diluted (in dollars per share) | $ 1.70 | $ 1.38 | $ 3.54 | $ 2.80 |
Class B common stock | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Income Allocation - Basic | $ 677 | $ 550 | $ 1,409 | $ 1,117 |
Weighted- Average Shares Outstanding - Basic (in shares) | 245 | 245 | 245 | 245 |
Earnings per Share - Basic (in dollars per share) | $ 2.76 | $ 2.24 | $ 5.74 | $ 4.55 |
Income Allocation - Diluted | $ 676 | $ 550 | $ 1,407 | $ 1,116 |
Weighted- Average Shares Outstanding - Diluted (in shares) | 245 | 245 | 245 | 245 |
Earnings per Share - Diluted (in dollars per share) | $ 2.75 | $ 2.24 | $ 5.73 | $ 4.54 |
Weighted-average as-converted common stock used in income allocation (in shares) | 397 | 398 | 398 | 398 |
Class C common stock | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Income Allocation - Basic | $ 69 | $ 59 | $ 143 | $ 120 |
Weighted- Average Shares Outstanding - Basic (in shares) | 10 | 11 | 10 | 11 |
Earnings per Share - Basic (in dollars per share) | $ 6.82 | $ 5.52 | $ 14.16 | $ 11.22 |
Income Allocation - Diluted | $ 69 | $ 59 | $ 143 | $ 120 |
Weighted- Average Shares Outstanding - Diluted (in shares) | 10 | 11 | 10 | 11 |
Earnings per Share - Diluted (in dollars per share) | $ 6.81 | $ 5.52 | $ 14.15 | $ 11.20 |
Weighted-average as-converted common stock used in income allocation (in shares) | 40 | 43 | 40 | 43 |
Participating securities | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Income Allocation - Basic | $ 82 | $ 75 | $ 170 | $ 163 |
Income Allocation - Diluted | $ 81 | $ 74 | $ 169 | $ 163 |
Series A 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 (in shares) | 6 | 12 | 6 | 17 |
Series B 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 (in shares) | 16 | 16 | 16 | 16 |
Series C 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 (in shares) | 22 | 22 | 22 | 22 |
Share-based Compensation - Awar
Share-based Compensation - Awards Granted to Company Employees and Non-employee Directors Under the 2007 Equity Incentive Compensation Plan (Details) | 6 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Non-qualified stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | shares | 961,570 |
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 43.16 |
Weighted-Average Exercise Price (in dollars per share) | $ 200.86 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | shares | 2,922,004 |
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 202.56 |
Performance-based shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | shares | 440,722 |
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 186.50 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
2007 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation cost | $ 181 | $ 148 | $ 302 | $ 264 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate reconciliation, percent | 20.00% | 17.00% | 19.00% | 17.00% |
Recognized tax benefit | $ 66 | $ 147 | ||
Increase in unrecognized tax benefits, gross | $ 65 | $ 143 | ||
Unrecognized tax benefits that would impact effective tax rate | $ 17 | $ 46 | $ 17 | $ 46 |
Legal Matters - Schedule of Acc
Legal Matters - Schedule of Accrued Litigation for Both Covered and Non-Covered Litigation (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loss Contingency Accrual [Roll Forward] | ||
Balance at beginning of period | $ 983 | $ 914 |
Balance at end of period | 769 | 886 |
Uncovered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Provision for legal matters | 1 | 3 |
Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Provision for legal matters | 150 | 9 |
Payments for legal matters | (365) | (40) |
U.S. Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Balance at beginning of period | 881 | 888 |
Provision for legal matters | 145 | 0 |
Payments for legal matters | (262) | (7) |
Balance at end of period | 764 | 881 |
VE Territory Covered Litigation | ||
Loss Contingency Accrual [Roll Forward] | ||
Balance at beginning of period | 102 | 21 |
Provision for legal matters | 5 | 9 |
Payments for legal matters | (102) | (28) |
Balance at end of period | $ 5 | $ 2 |
Legal Matters - Additional Info
Legal Matters - Additional Information (Details) $ in Millions | 6 Months Ended | 105 Months Ended | |
Mar. 31, 2022USD ($)merchant | Mar. 31, 2021USD ($) | Mar. 31, 2022merchant | |
Loss Contingencies [Line Items] | |||
Deposits into the litigation escrow account | $ | $ 250 | $ 0 | |
U.S. Covered Litigation | |||
Loss Contingencies [Line Items] | |||
Provision for legal matters | $ | 145 | 0 | |
Deposits into the litigation escrow account | $ | 250 | ||
Payments for legal matters | $ | $ 262 | $ 7 | |
Interchange Multidistrict Litigation | |||
Loss Contingencies [Line Items] | |||
Settlement percentage | 50.00% | 50.00% | |
U.K. Merchant Litigation | |||
Loss Contingencies [Line Items] | |||
Number of plaintiffs | merchant | 850 | ||
Number of claims settled | merchant | 150 | ||
Merchants with outstanding claims | merchant | 650 | 650 | |
U.K. Merchant Litigation | Threatened Litigation | |||
Loss Contingencies [Line Items] | |||
Number of plaintiffs | merchant | 30 |