Company Quick10K Filing
Visa
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 -0 $-0
10-Q 2020-01-31 Quarter: 2019-12-31
10-K 2019-11-14 Annual: 2019-09-30
10-Q 2019-07-26 Quarter: 2019-06-30
10-Q 2019-04-26 Quarter: 2019-03-31
10-Q 2019-01-31 Quarter: 2018-12-31
10-K 2018-11-16 Annual: 2018-09-30
10-Q 2018-07-27 Quarter: 2018-06-30
10-Q 2018-04-27 Quarter: 2018-03-31
10-Q 2018-02-01 Quarter: 2017-12-31
10-K 2017-11-17 Annual: 2017-09-30
10-Q 2017-07-20 Quarter: 2017-06-30
10-Q 2017-04-21 Quarter: 2017-03-31
10-Q 2017-02-02 Quarter: 2016-12-31
10-K 2016-11-15 Annual: 2016-09-30
10-Q 2016-07-25 Quarter: 2016-06-30
10-Q 2016-04-25 Quarter: 2016-03-31
10-Q 2016-01-28 Quarter: 2015-12-31
10-K 2015-11-20 Annual: 2015-09-30
10-Q 2015-07-23 Quarter: 2015-06-30
10-Q 2015-04-30 Quarter: 2015-03-31
10-Q 2015-01-29 Quarter: 2014-12-31
10-K 2014-11-21 Annual: 2014-09-30
10-Q 2014-07-24 Quarter: 2014-06-30
10-Q 2014-04-24 Quarter: 2014-03-31
10-Q 2014-01-30 Quarter: 2013-12-31
10-K 2013-11-22 Annual: 2013-09-30
10-Q 2013-07-24 Quarter: 2013-06-30
10-Q 2013-05-01 Quarter: 2013-03-31
10-Q 2013-02-06 Quarter: 2012-12-31
10-K 2012-11-16 Annual: 2012-09-30
10-Q 2012-07-27 Quarter: 2012-06-30
10-Q 2012-05-02 Quarter: 2012-03-31
10-Q 2012-02-08 Quarter: 2011-12-31
10-K 2011-11-18 Annual: 2011-09-30
10-Q 2011-07-29 Quarter: 2011-06-30
10-Q 2011-05-05 Quarter: 2011-03-31
10-Q 2011-02-02 Quarter: 2010-12-31
10-K 2010-11-19 Annual: 2010-09-30
10-Q 2010-08-02 Quarter: 2010-06-30
10-Q 2010-05-03 Quarter: 2010-03-31
10-Q 2010-02-03 Quarter: 2009-12-31
8-K 2020-01-28 Earnings, Other Events, Exhibits
8-K 2020-01-28 Shareholder Vote
8-K 2019-11-13 Officers, Exhibits
8-K 2019-10-22 Earnings, Other Events, Exhibits
8-K 2019-09-30 Other Events
8-K 2019-09-25 Other Events
8-K 2019-07-23 Earnings, Exhibits
8-K 2019-07-15 Amend Bylaw, Other Events, Exhibits
8-K 2019-04-24 Earnings, Exhibits
8-K 2019-04-16 Other Events, Exhibits
8-K 2019-04-16 Other Events, Exhibits
8-K 2019-01-29 Earnings, Other Events, Exhibits
8-K 2019-01-29 Shareholder Vote
8-K 2018-10-24 Earnings, Exhibits
8-K 2018-10-16 Other Events, Exhibits
8-K 2018-09-17 Enter Agreement, Other Events, Exhibits
8-K 2018-08-02 Officers, Exhibits
8-K 2018-07-25 Earnings, Exhibits
8-K 2018-07-16 Other Events, Exhibits
8-K 2018-07-05 Other Events, Exhibits
8-K 2018-06-25 Other Events, Exhibits
8-K 2018-04-25 Earnings, Exhibits
8-K 2018-04-17 Other Events, Exhibits
8-K 2018-03-29 Officers, Exhibits
8-K 2018-01-30 Earnings, Other Events, Exhibits
8-K 2018-01-30 Shareholder Vote
V 2019-12-31
Part I. Financial Information
Item 1. Financial Statements
Note 1-Summary of Significant Accounting Policies
Note 2-Revenues
Note 3-Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Note 4-U.S. and Europe Retrospective Responsibility Plans
Note 5-Fair Value Measurements and Investments
Note 6-Leases
Note 7-Debt
Note 8-Settlement Guarantee Management
Note 9-Stockholders' Equity
Note 10-Earnings per Share
Note 11-Share-Based Compensation
Note 12-Income Taxes
Note 13-Legal Matters
Note 14-Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-10.1 vex101formofindemnitya.htm
EX-31.1 vex311123119.htm
EX-31.2 vex312123119.htm
EX-32.1 vex321123119.htm
EX-32.2 vex322123119.htm

Visa Earnings 2019-12-31

V 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
LHC 206 11 0 0 -0 -0 -0 0.0 -0%
QIWI 73,023 0 0 0 0 -3 0%
MFAC 175 7 0 0 2 2 -0 -0.2 1%
FTCH 1,351 223 0 0 0 0 -50 0%
MOSC 354 12 0 0 6 7 -1 -0.1 2%
PRTH 460 561 411 0 -27 42 456 0% 10.9 -6%
NEBU 281 10 0 0 3 5 -1 -0.2 1%
V 70,249 35,254 22,274 0 11,900 16,118 6,081 0% 0.4 17%
MUDS 214 7 0 0 3 4 -0 -0.1 1%
STNL 355 19 0 0 -0 -0 -1 6.9 -0%

Document
false--09-30Q12020000140316110000000.00010.00010.00010.00010.00010.000120016220000006220000001097000000200162200000062200000010970000001718000000245000000110000001709000000245000000110000000.0220.0280.03150.02750.04150.04300.03650.0215P1Y0.18030000000.00010.0001250000002500000050000000200000030000005000000020000003000000500000050000000.250.303200000044000000 0001403161 2019-10-01 2019-12-31 0001403161 us-gaap:CommonClassAMember 2020-01-24 0001403161 us-gaap:CommonClassCMember 2020-01-24 0001403161 us-gaap:CommonClassBMember 2020-01-24 0001403161 2019-12-31 0001403161 2019-09-30 0001403161 us-gaap:SeriesCPreferredStockMember 2019-12-31 0001403161 us-gaap:CommonClassAMember 2019-09-30 0001403161 us-gaap:CommonClassAMember 2019-12-31 0001403161 us-gaap:CommonClassBMember 2019-09-30 0001403161 us-gaap:CommonClassBMember 2019-12-31 0001403161 us-gaap:CommonClassCMember 2019-09-30 0001403161 us-gaap:SeriesCPreferredStockMember 2019-09-30 0001403161 us-gaap:SeriesAPreferredStockMember 2019-12-31 0001403161 us-gaap:SeriesBPreferredStockMember 2019-09-30 0001403161 us-gaap:SeriesBPreferredStockMember 2019-12-31 0001403161 us-gaap:SeriesAPreferredStockMember 2019-09-30 0001403161 us-gaap:CommonClassCMember 2019-12-31 0001403161 us-gaap:PreferredStockMember 2019-12-31 0001403161 us-gaap:PreferredStockMember 2019-09-30 0001403161 us-gaap:CommonClassBMember 2018-10-01 2018-12-31 0001403161 us-gaap:CommonClassAMember 2018-10-01 2018-12-31 0001403161 2018-10-01 2018-12-31 0001403161 us-gaap:CommonClassBMember 2019-10-01 2019-12-31 0001403161 us-gaap:CommonClassCMember 2019-10-01 2019-12-31 0001403161 us-gaap:CommonClassCMember 2018-10-01 2018-12-31 0001403161 us-gaap:CommonClassAMember 2019-10-01 2019-12-31 0001403161 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-10-01 2019-12-31 0001403161 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-10-01 2019-12-31 0001403161 us-gaap:RetainedEarningsMember 2019-10-01 2019-12-31 0001403161 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001403161 us-gaap:PreferredStockMember 2019-09-30 0001403161 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-09-30 0001403161 v:RighttoRecoverforCoveredLossesMember 2019-09-30 0001403161 us-gaap:AdditionalPaidInCapitalMember 2019-10-01 2019-12-31 0001403161 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-09-30 0001403161 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-12-31 0001403161 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2019-09-30 0001403161 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001403161 v:RighttoRecoverforCoveredLossesMember 2019-10-01 2019-12-31 0001403161 us-gaap:RetainedEarningsMember 2019-09-30 0001403161 us-gaap:RetainedEarningsMember 2019-12-31 0001403161 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2019-12-31 0001403161 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-12-31 0001403161 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2019-09-30 0001403161 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2019-12-31 0001403161 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001403161 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2019-12-31 0001403161 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2019-09-30 0001403161 us-gaap:PreferredStockMember 2019-12-31 0001403161 v:RighttoRecoverforCoveredLossesMember 2019-12-31 0001403161 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2019-10-01 2019-12-31 0001403161 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001403161 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-10-01 2018-12-31 0001403161 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-10-01 2018-12-31 0001403161 us-gaap:RetainedEarningsMember 2018-10-01 2018-12-31 0001403161 2018-09-30 0001403161 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-09-30 0001403161 us-gaap:RetainedEarningsMember 2018-09-30 0001403161 us-gaap:AdditionalPaidInCapitalMember 2018-10-01 2018-12-31 0001403161 v:RighttoRecoverforCoveredLossesMember 2018-10-01 2018-12-31 0001403161 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2018-09-30 0001403161 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001403161 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001403161 us-gaap:PreferredStockMember 2018-10-01 2018-12-31 0001403161 v:RighttoRecoverforCoveredLossesMember 2018-12-31 0001403161 2018-12-31 0001403161 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-10-01 2018-12-31 0001403161 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2018-09-30 0001403161 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-12-31 0001403161 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001403161 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-12-31 0001403161 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-09-30 0001403161 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-12-31 0001403161 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2018-12-31 0001403161 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001403161 us-gaap:PreferredStockMember 2018-12-31 0001403161 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-09-30 0001403161 us-gaap:RetainedEarningsMember 2018-12-31 0001403161 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2018-12-31 0001403161 v:RighttoRecoverforCoveredLossesMember 2018-09-30 0001403161 us-gaap:PreferredStockMember 2018-09-30 0001403161 country:US 2018-10-01 2018-12-31 0001403161 us-gaap:NonUsMember 2019-10-01 2019-12-31 0001403161 country:US 2019-10-01 2019-12-31 0001403161 us-gaap:NonUsMember 2018-10-01 2018-12-31 0001403161 v:ClientIncentivesMember 2019-10-01 2019-12-31 0001403161 v:DataProcessingRevenuesMember 2018-10-01 2018-12-31 0001403161 v:InternationalTransactionRevenuesMember 2019-10-01 2019-12-31 0001403161 us-gaap:ServiceOtherMember 2019-10-01 2019-12-31 0001403161 v:ClientIncentivesMember 2018-10-01 2018-12-31 0001403161 us-gaap:ServiceMember 2019-10-01 2019-12-31 0001403161 v:DataProcessingRevenuesMember 2019-10-01 2019-12-31 0001403161 us-gaap:ServiceOtherMember 2018-10-01 2018-12-31 0001403161 us-gaap:ServiceMember 2018-10-01 2018-12-31 0001403161 v:InternationalTransactionRevenuesMember 2018-10-01 2018-12-31 0001403161 v:CustomerCollateralAssetsMember 2019-12-31 0001403161 v:U.S.LitigationEscrowMember 2019-12-31 0001403161 v:U.S.LitigationEscrowMember 2019-09-30 0001403161 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2019-12-31 0001403161 v:CustomerCollateralAssetsMember 2019-09-30 0001403161 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2019-09-30 0001403161 v:OptoutMerchantsMember us-gaap:InterestIncomeMember 2019-10-01 2019-12-31 0001403161 v:OptoutMerchantsMember us-gaap:InterestIncomeMember 2018-10-01 2018-12-31 0001403161 2019-12-27 2019-12-27 0001403161 us-gaap:SeriesBPreferredStockMember 2019-10-01 2019-12-31 0001403161 us-gaap:SeriesBPreferredStockMember 2018-10-01 2019-09-30 0001403161 us-gaap:SeriesCPreferredStockMember 2019-10-01 2019-12-31 0001403161 us-gaap:SeriesCPreferredStockMember 2018-10-01 2019-09-30 0001403161 us-gaap:SeniorNotesMember 2019-09-30 0001403161 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SeniorNotesMember 2019-09-30 0001403161 srt:MaximumMember 2019-12-31 0001403161 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SeniorNotesMember 2019-12-31 0001403161 2019-02-01 2019-02-01 0001403161 us-gaap:SeniorNotesMember 2019-12-31 0001403161 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001403161 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001403161 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001403161 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001403161 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-12-31 0001403161 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001403161 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001403161 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2019-09-30 0001403161 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001403161 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-30 0001403161 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2019-12-31 0001403161 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001403161 srt:MinimumMember 2019-12-31 0001403161 srt:MinimumMember 2019-10-01 2019-12-31 0001403161 v:A2027NotesMember us-gaap:SeniorNotesMember 2019-12-31 0001403161 v:A2022NotesMember us-gaap:SeniorNotesMember 2019-12-31 0001403161 v:A2035NotesMember us-gaap:SeniorNotesMember 2019-09-30 0001403161 v:A2025NotesMember us-gaap:SeniorNotesMember 2019-12-31 0001403161 v:A2025NotesMember us-gaap:SeniorNotesMember 2019-09-30 0001403161 v:A2047NotesMember us-gaap:SeniorNotesMember 2019-12-31 0001403161 v:September2022NotesMember us-gaap:SeniorNotesMember 2019-09-30 0001403161 v:A2045NotesMember us-gaap:SeniorNotesMember 2019-12-31 0001403161 v:A2020NotesMember us-gaap:SeniorNotesMember 2019-09-30 0001403161 v:A2020NotesMember us-gaap:SeniorNotesMember 2019-12-31 0001403161 v:A2035NotesMember us-gaap:SeniorNotesMember 2019-12-31 0001403161 v:A2045NotesMember us-gaap:SeniorNotesMember 2019-09-30 0001403161 v:A2027NotesMember us-gaap:SeniorNotesMember 2019-09-30 0001403161 v:A2047NotesMember us-gaap:SeniorNotesMember 2019-09-30 0001403161 v:September2022NotesMember us-gaap:SeniorNotesMember 2019-12-31 0001403161 v:A2022NotesMember us-gaap:SeniorNotesMember 2019-09-30 0001403161 us-gaap:CommonClassAMember us-gaap:SubsequentEventMember 2020-01-28 0001403161 us-gaap:SubsequentEventMember 2020-01-31 0001403161 2019-01-31 0001403161 v:ParticipatingSecuritiesMember 2018-10-01 2018-12-31 0001403161 v:ParticipatingSecuritiesMember 2019-10-01 2019-12-31 0001403161 us-gaap:SeriesBPreferredStockMember 2018-10-01 2018-12-31 0001403161 us-gaap:SeriesCPreferredStockMember 2018-10-01 2018-12-31 0001403161 v:EquityIncentiveCompensationPlan2007Member 2018-10-01 2018-12-31 0001403161 v:EquityIncentiveCompensationPlan2007Member 2019-10-01 2019-12-31 0001403161 us-gaap:RestrictedStockUnitsRSUMember 2019-10-01 2019-12-31 0001403161 us-gaap:EmployeeStockOptionMember 2019-10-01 2019-12-31 0001403161 us-gaap:PerformanceSharesMember 2019-10-01 2019-12-31 0001403161 v:U.S.CoveredLitigationMemberMember 2018-12-31 0001403161 v:InterchangeMultidistrictLitigationMember v:U.S.CoveredLitigationMemberMember 2018-10-01 2018-12-31 0001403161 v:U.S.CoveredLitigationMemberMember 2019-09-30 0001403161 v:U.S.CoveredLitigationMemberMember 2018-09-30 0001403161 us-gaap:SettledLitigationMember v:U.S.CoveredLitigationMemberMember 2019-10-01 2019-12-31 0001403161 v:InterchangeMultidistrictLitigationMember v:U.S.CoveredLitigationMemberMember 2019-10-01 2019-12-31 0001403161 us-gaap:SettledLitigationMember v:U.S.CoveredLitigationMemberMember 2018-10-01 2018-12-31 0001403161 v:U.S.CoveredLitigationMemberMember 2019-12-31 0001403161 us-gaap:SettledLitigationMember 2018-10-01 2018-12-31 0001403161 v:InterchangeMultidistrictLitigationMember 2018-10-01 2018-12-31 0001403161 us-gaap:SettledLitigationMember 2019-10-01 2019-12-31 0001403161 v:UnsettledMember 2019-10-01 2019-12-31 0001403161 v:InterchangeMultidistrictLitigationMember 2019-10-01 2019-12-31 0001403161 v:UnsettledMember 2018-10-01 2018-12-31 0001403161 v:VETerritoryCoveredLitigationMember 2018-10-01 2018-12-31 0001403161 v:VETerritoryCoveredLitigationMember 2019-12-31 0001403161 v:VETerritoryCoveredLitigationMember 2019-10-01 2019-12-31 0001403161 us-gaap:SettledLitigationMember v:VETerritoryCoveredLitigationMember 2019-10-01 2019-12-31 0001403161 v:VETerritoryCoveredLitigationMember 2018-12-31 0001403161 v:VETerritoryCoveredLitigationMember 2019-09-30 0001403161 us-gaap:SettledLitigationMember v:VETerritoryCoveredLitigationMember 2018-10-01 2018-12-31 0001403161 v:VETerritoryCoveredLitigationMember 2018-09-30 0001403161 v:U.S.CoveredLitigationMember 2019-10-01 2019-12-31 0001403161 v:InterchangeMultidistrictLitigationMember v:U.S.CoveredLitigationMember 2019-10-01 2019-12-31 0001403161 v:InterchangeMultidistrictLitigationMember v:U.S.CoveredLitigationMember 2019-12-27 2019-12-27 0001403161 v:VisaMasterCardandCertainU.S.FinancialInstitutionsMember 2019-10-01 2019-12-31 0001403161 v:U.K.MerchantLitigationMember us-gaap:SubsequentEventMember 2013-07-01 2020-01-31 0001403161 v:U.K.MerchantLitigationMember us-gaap:SubsequentEventMember 2020-01-31 0001403161 v:U.K.MerchantLitigationMember us-gaap:ThreatenedLitigationMember us-gaap:SubsequentEventMember 2013-07-01 2020-01-31 0001403161 v:PlaidInc.Member us-gaap:SubsequentEventMember 2020-01-13 2020-01-13 iso4217:USD xbrli:shares v:country v:option_to_renew v:merchant xbrli:shares iso4217:EUR xbrli:pure iso4217:USD
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-33977
logoa11.gif
VISA INC.
(Exact name of Registrant as specified in its charter)
Delaware
 
26-0267673
(State or other jurisdiction
of incorporation or organization)
 
(IRS Employer
Identification No.)
 
 
 
 
P.O. Box 8999
 
94128-8999
San Francisco,
California
 
 
(Address of principal executive offices)
 
(Zip Code)
(650) 432-3200
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol
 
Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per share
 
V
 
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
Accelerated filer
Non-accelerated filer
 
Smaller reporting company
 
 
 
Emerging growth company



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No  
As of January 24, 2020, there were 1,706,024,403 shares outstanding of the registrant’s class A common stock, par value $0.0001 per share, 245,513,385 shares outstanding of the registrant’s class B common stock, par value $0.0001 per share, and 10,969,172 shares outstanding of the registrant’s class C common stock, par value $0.0001 per share.


Table of Contents

VISA INC.
TABLE OF CONTENTS
 
 
 
 
 
 
Page
PART I.
 
 
 
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
 
PART II.
 
 
 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 

3

Table of Contents

PART I. FINANCIAL INFORMATION
ITEM 1.
Financial Statements
VISA INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 
December 31,
2019
 
September 30,
2019
 
(in millions, except par value data)
Assets
 
 
 
Cash and cash equivalents
$
8,768

 
$
7,838

Restricted cash equivalents—U.S. litigation escrow (Note 3 and Note 4)
1,634

 
1,205

Investment securities (Note 5)
3,902

 
4,236

Settlement receivable
3,273

 
3,048

Accounts receivable
1,661

 
1,542

Customer collateral (Note 3 and Note 8)
1,698

 
1,648

Current portion of client incentives
803

 
741

Prepaid expenses and other current assets
580

 
712

Total current assets
22,319

 
20,970

Investment securities (Note 5)
1,719

 
2,157

Client incentives
2,481

 
2,084

Property, equipment and technology, net
2,739

 
2,695

Goodwill
15,767

 
15,656

Intangible assets, net 
27,137

 
26,780

Other assets
2,619

 
2,232

Total assets
$
74,781

 
$
72,574

Liabilities
 
 
 
Accounts payable
$
133

 
$
156

Settlement payable
4,277

 
3,990

Customer collateral (Note 3 and Note 8)
1,698

 
1,648

Accrued compensation and benefits
527

 
796

Client incentives
4,270

 
3,997

Accrued liabilities
2,045

 
1,625

Current maturities of long-term debt (Note 7)
3,000

 

Accrued litigation (Note 13)
1,629

 
1,203

Total current liabilities
17,579

 
13,415

Long-term debt (Note 7)
13,688

 
16,729

Deferred tax liabilities
4,810

 
4,807

Other liabilities
3,434

 
2,939

Total liabilities
39,511

 
37,890

Equity
 
 
 
Preferred stock, $0.0001 par value, 25 shares authorized and 5 shares issued and outstanding as follows:
 
 
 
Series A convertible participating preferred stock, none issued (the “class A equivalent preferred stock”) (Note 9)

 

Series B convertible participating preferred stock, 2 shares issued and outstanding at December 31, 2019 and September 30, 2019 (the “UK&I preferred stock”) (Note 4 and Note 9)
2,285

 
2,285

Series C convertible participating preferred stock, 3 shares issued and outstanding at December 31, 2019 and September 30, 2019 (the “Europe preferred stock”) (Note 4 and Note 9)
3,177

 
3,177

Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,709 and 1,718 shares issued and outstanding at December 31, 2019 and September 30, 2019, respectively (Note 9)

 

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2019 and September 30, 2019 (Note 9)

 

Class C common stock, $0.0001 par value, 1,097 shares authorized, 11 shares issued and outstanding at December 31, 2019 and September 30, 2019 (Note 9)

 

Right to recover for covered losses (Note 4)
(175
)
 
(171
)
Additional paid-in capital
16,424

 
16,541

Accumulated income
13,899

 
13,502

Accumulated other comprehensive income (loss), net:
 
 
 
Investment securities
4

 
6

Defined benefit pension and other postretirement plans
(203
)
 
(192
)
Derivative instruments
49

 
199

Foreign currency translation adjustments
(190
)
 
(663
)
Total accumulated other comprehensive income (loss), net
(340
)
 
(650
)
Total equity
35,270

 
34,684

Total liabilities and equity
$
74,781

 
$
72,574


See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
4

Table of Contents

VISA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
Three Months Ended
December 31,
 
2019
 
2018
 
(in millions, except per share data)
Net revenues
$
6,054

 
$
5,506

 
 
 
 
Operating Expenses 
 
 
 
Personnel
982

 
807

Marketing
274

 
276

Network and processing
181

 
173

Professional fees
106

 
91

Depreciation and amortization
182

 
159

General and administrative
313

 
276

Litigation provision (Note 13)

 
7

Total operating expenses
2,038

 
1,789

Operating income
4,016

 
3,717

 
 
 
 
Non-operating Income (Expense)
 
 
 
Interest expense, net
(111
)
 
(145
)
Investment income and other
69

 
58

Total non-operating income (expense)
(42
)
 
(87
)
Income before income taxes
3,974

 
3,630

Income tax provision (Note 12)
702

 
653

Net income
$
3,272

 
$
2,977

 
 
 
 
Basic Earnings Per Share (Note 10)
 
 
 
Class A common stock
$
1.46

 
$
1.30

Class B common stock
$
2.37

 
$
2.12

Class C common stock
$
5.85

 
$
5.20

 
 
 
 
Basic Weighted-average Shares Outstanding (Note 10)
 
 
 
Class A common stock
1,713

 
1,760

Class B common stock
245

 
245

Class C common stock
11

 
12

 
 
 
 
Diluted Earnings Per Share (Note 10)
 
 
 
Class A common stock
$
1.46

 
$
1.30

Class B common stock
$
2.37

 
$
2.12

Class C common stock
$
5.84

 
$
5.20

 
 
 
 
Diluted Weighted-average Shares Outstanding (Note 10)
 
 
 
Class A common stock
2,240

 
2,291

Class B common stock
245

 
245

Class C common stock
11

 
12




See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
5

Table of Contents

VISA INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
 
 
Three Months Ended
December 31,
 
2019
 
2018
 
(in millions)
Net income
$
3,272

 
$
2,977

Other comprehensive income (loss), net of tax:
 
 
 
Investment securities:
 
 
 
Net unrealized gain (loss)

 
8

Income tax effect

 
(2
)
Defined benefit pension and other postretirement plans:
 
 
 
Net unrealized actuarial gain (loss) and prior service credit (cost)
(1
)
 
(7
)
Income tax effect

 
1

Reclassification adjustments
4

 

Income tax effect
(1
)
 

Derivative instruments:
 
 
 
Net unrealized gain (loss)
(188
)
 
38

Income tax effect
39

 
(10
)
Reclassification adjustments
(2
)
 
(25
)
Income tax effect
1

 
5

Foreign currency translation adjustments
483

 
(287
)
Other comprehensive income (loss), net of tax
335

 
(279
)
Comprehensive income
$
3,607

 
$
2,698




See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
6

Table of Contents

VISA INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)
 
Three Months Ended December 31, 2019
 
Preferred Stock
 
Common Stock
 
Preferred Stock
 
Right to Recover for Covered Losses
 
Additional
Paid-In Capital
 
Accumulated
Income
 
Accumulated
Other
Comprehensive
Income (Loss), Net
 
Total
Equity
 
Series B
 
Series C
 
Class A
 
Class B
 
Class C
 
 
(in millions, except per share data)
Balance as of September 30, 2019
2

 
3

 
1,718

 
245

 
11

 
$
5,462

 
$
(171
)
 
$
16,541

 
$
13,502

 
$
(650
)
 
$
34,684

Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,272

 
 
 
3,272

Other comprehensive income (loss), net of tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
335

 
335

Comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,607

Adoption of new accounting standards (Note 1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25

 
(25
)
 

VE territory covered losses incurred (Note 4)
 
 
 
 
 
 
 
 
 
 
 
 
(4
)
 
 
 
 
 
 
 
(4
)
Conversion of class C common stock upon sales into public market
 
 
 
 
1

 
 
 

(1) 
 
 
 
 
 
 
 
 
 
 

Vesting of restricted stock and performance-based shares
 
 
 
 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Share-based compensation, net of forfeitures (Note 11)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
116

 
 
 
 
 
116

Restricted stock and performance-based shares settled in cash for taxes
 
 
 
 
(1
)
 
 
 
 
 
 
 
 
 
(147
)
 
 
 
 
 
(147
)
Cash proceeds from issuance of common stock under employee equity plans
 
 
 
 
1

 
 
 
 
 
 
 
 
 
55

 
 
 
 
 
55

Cash dividends declared and paid, at a quarterly amount of $0.30 per as-converted share (Note 9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(671
)
 
 
 
(671
)
Repurchase of class A common stock (Note 9)
 
 
 
 
(13
)
 
 
 
 
 
 
 
 
 
(141
)
 
(2,229
)
 
 
 
(2,370
)
Balance as of December 31, 2019
2

 
3

 
1,709

 
245

 
11

 
$
5,462

 
$
(175
)
 
$
16,424

 
$
13,899

 
$
(340
)
 
$
35,270

(1) 
Increase or decrease is less than one million shares.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
7

Table of Contents

VISA INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY—(Continued)
(UNAUDITED)
 
Three Months Ended December 31, 2018
 
Preferred Stock
 
Common Stock
 
Preferred Stock
 
Right to Recover for Covered Losses
 
Additional
Paid-In Capital
 
Accumulated
Income
 
Accumulated
Other
Comprehensive
Income (Loss), Net
 
Total
Equity
 
Series B
 
Series C
 
Class A
 
Class B
 
Class C
 
 
(in millions, except per share data)
Balance as of September 30, 2018
2

 
3

 
1,768

 
245

 
12

 
$
5,470

 
$
(7
)
 
$
16,678

 
$
11,318

 
$
547

 
$
34,006

Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,977

 
 
 
2,977

Other comprehensive income (loss), net of tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(279
)
 
(279
)
Comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,698

Adoption of new accounting standards
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
393

 
7

 
400

VE territory covered losses incurred (Note 4)
 
 
 
 
 
 
 
 
 
 
 
 
(91
)
 
 
 
 
 
 
 
(91
)
Recovery through conversion rate adjustment (Note 4 and Note 9)
 
 
 
 
 
 
 
 
 
 
(6
)
 
6

 
 
 
 
 
 
 

Conversion of class C common stock upon sales into public market
 
 
 
 

(1) 
 
 

(1) 
 
 
 
 
 
 
 
 
 
 

Vesting of restricted stock and performance-based shares
 
 
 
 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Share-based compensation, net of forfeitures (Note 11)
 
 
 
 


 
 
 
 
 
 
 
 
 
100

 
 
 
 
 
100

Restricted stock and performance-based shares settled in cash for taxes
 
 
 
 
(1
)
 
 
 
 
 
 
 
 
 
(101
)
 
 
 
 
 
(101
)
Cash proceeds from issuance of common stock under employee equity plans
 
 
 
 
1

 
 
 
 
 
 
 
 
 
48

 
 
 
 
 
48

Cash dividends declared and paid, at a quarterly amount of $0.25 per as-converted share (Note 9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(572
)
 
 
 
(572
)
Repurchase of class A common stock (Note 9)
 
 
 
 
(17
)
 
 
 
 
 
 
 
 
 
(185
)
 
(2,208
)
 
 
 
(2,393
)
Balance as of December 31, 2018
2

 
3

 
1,754

 
245

 
12

 
$
5,464

 
$
(92
)
 
$
16,540

 
$
11,908

 
$
275

 
$
34,095

(1) 
Increase or decrease is less than one million shares.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
8

Table of Contents

VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
Three Months Ended
December 31,
 
2019
 
2018
 
(in millions)
Operating Activities
 
 
 
Net income
$
3,272


$
2,977

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
Client incentives (Note 2)
1,748


1,456

Share-based compensation (Note 11)
116


100

Depreciation and amortization of property, equipment, technology and intangible assets
182


159

Deferred income taxes
(47
)

139

VE territory covered losses incurred (Note 4)
(4
)

(91
)
Other
(50
)

9

Change in operating assets and liabilities:





Settlement receivable
(183
)

(1,551
)
Accounts receivable
(107
)

(200
)
Client incentives
(1,943
)

(1,361
)
Other assets
123


(37
)
Accounts payable
(12
)

(46
)
Settlement payable
218


1,739

Accrued and other liabilities
136


(54
)
Accrued litigation (Note 13)
426


55

Net cash provided by (used in) operating activities
3,875


3,294

Investing Activities
 
 
 
Purchases of property, equipment and technology
(191
)

(157
)
Investment securities:




Purchases
(400
)

(1,124
)
Proceeds from maturities and sales
1,202


1,233

Acquisitions, net of cash acquired
(77
)


Purchases of / contributions to other investments
(9
)
 
(22
)
Proceeds / distributions from other investments
1

 

Other investing activities
36



Net cash provided by (used in) investing activities
562


(70
)
Financing Activities
 
 
 
Repurchase of class A common stock (Note 9)
(2,370
)
 
(2,393
)
Dividends paid (Note 9)
(671
)
 
(572
)
Cash proceeds from issuance of common stock under employee equity plans
55

 
48

Restricted stock and performance-based shares settled in cash for taxes
(147
)
 
(101
)
Net cash provided by (used in) financing activities
(3,133
)
 
(3,018
)
Effect of exchange rate changes on cash and cash equivalents
127

 
(68
)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents
1,431

 
138

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period (Note 3)
10,832

 
10,977

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period (Note 3)
$
12,263

 
$
11,115

Supplemental Disclosure
 
 
 
Income taxes paid, net of refunds
$
345

 
$
168

Interest payments on debt
$
234

 
$
234

Accruals related to purchases of property, equipment and technology
$
66

 
$
34

 

See accompanying notes, which are an integral part of these unaudited consolidated financial statements.
9

Table of Contents

VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2019
(UNAUDITED)
Note 1—Summary of Significant Accounting Policies
Organization. Visa Inc. (“Visa” or the “Company”) is a global payments technology company that enables fast, secure and reliable electronic payments across more than 200 countries and territories. Visa and its wholly-owned consolidated subsidiaries, including Visa U.S.A. Inc. (“Visa U.S.A.”), Visa International Service Association (“Visa International”), Visa Worldwide Pte. Limited, Visa Europe Limited (“Visa Europe”), Visa Canada Corporation (“Visa Canada”), Visa Technology & Operations LLC and CyberSource Corporation, operate one of the world’s largest electronic payments networks — VisaNet — which facilitates authorization, clearing and settlement of payment transactions and enables the Company to provide its financial institution and merchant clients a wide range of products, platforms and value-added services. Visa is not a financial institution and does not issue cards, extend credit or set rates and fees for account holders on Visa products. In most cases, account holder and merchant relationships belong to, and are managed by, Visa’s financial institution clients.
Consolidation and basis of presentation. The accompanying unaudited consolidated financial statements include the accounts of Visa and its consolidated entities and are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company consolidates its majority-owned and controlled entities, including variable interest entities (“VIEs”) for which the Company is the primary beneficiary. The Company’s investments in VIEs have not been material to its unaudited consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation.
The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (“SEC”) requirements for Quarterly Reports on Form 10-Q and, consequently, do not include all of the annual disclosures required by U.S. GAAP. Reference should be made to the Visa Annual Report on Form 10-K for the year ended September 30, 2019 for additional disclosures, including a summary of the Company’s significant accounting policies.
In the opinion of management, the accompanying unaudited consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented.
Recently Issued and Adopted Accounting Pronouncements.
In February 2016, the FASB issued ASU 2016-02, which requires the recognition of lease assets and lease liabilities arising from operating leases on the balance sheet. Subsequently, the FASB also issued a series of amendments to this new leases standard that address the transition methods available and clarify the guidance for lessor costs and other aspects of the new leases standard. The Company adopted the standard effective October 1, 2019 using the modified retrospective transition method with comparative periods continuing to be reported using the prior leases standard. The Company elected to apply the package of practical expedients permitted under the transition guidance, allowing the Company to carry forward the historical assessment of whether a contract was or contains a lease, lease classification and capitalization of initial direct costs. The adoption did not have a material impact on the consolidated financial statements.
In accordance with ASU 2016-02, the Company determines if an arrangement is a lease at its inception. Right-of-use (“ROU”) assets, and corresponding lease liabilities, are recognized at the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As a majority of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company does not record a ROU asset and corresponding liability for leases with terms of 12 months or less.

10

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The Company does not include renewals in the determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company does not combine lease payments with non-lease components for any of its leases. Operating leases are recorded as ROU assets, which are included in other assets. The current portion of lease liabilities are included in accrued liabilities and the long-term portion is included in other liabilities on the consolidated balance sheet. The Company’s lease cost consists of amounts recognized under lease agreements in the results of operations adjusted for impairment and sublease income.
In February 2018, the FASB issued ASU 2018-02, which allows a reclassification from accumulated other comprehensive income to retained earnings for adjustments to tax effects that were originally recorded in other comprehensive income due to changes in the U.S. federal corporate income tax rate resulting from the enactment of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Company adopted the ASU effective October 1, 2019. The adoption did not have a material impact on the consolidated financial statements.
In December 2019, the FASB issued ASU 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance for income taxes and making other minor improvements. The amendments in the ASU are effective for the Company on October 1, 2021. The Company does not plan to early adopt the ASU at this time. The adoption is not expected to 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 the purposes of applying the fair value measurement alternative. The amendments in the ASU are effective for the Company on October 1, 2021. The adoption is not expected to have a material impact on the consolidated financial statements.
Note 2—Revenues
The nature, amount, timing and uncertainty of the Company’s revenues and cash flows and how they are affected by economic factors are most appropriately depicted through the Company’s revenue categories and geographical markets. The following tables disaggregate the Company’s net revenues by revenue category and by geography for the three months ended December 31, 2019 and 2018:
 
Three Months Ended
December 31,
 
2019
 
2018
 
(in millions)
Service revenues
$
2,555

 
$
2,342

Data processing revenues
2,864

 
2,470

International transaction revenues
2,018

 
1,851

Other revenues
365

 
299

Client incentives
(1,748
)
 
(1,456
)
Net revenues
$
6,054

 
$
5,506

 
Three Months Ended
December 31,
 
2019
 
2018
 
(in millions)
U.S.
$
2,717

 
$
2,508

International
3,337

 
2,998

Net revenues
$
6,054

 
$
5,506



11

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 3—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
The Company’s cash and cash equivalents include cash and certain highly liquid investments with original maturities of 90 days or less from the date of purchase. Cash equivalents are primarily recorded at cost, which approximates fair value due to their generally short maturities. The Company defines restricted cash and restricted cash equivalents as cash and cash equivalents that cannot be withdrawn or used for general operating activities.
The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:
 
December 31, 2019
 
September 30, 2019
 
(in millions)
Cash and cash equivalents
$
8,768

 
$
7,838

Restricted cash and restricted cash equivalents:
 
 
 
U.S. litigation escrow
1,634

 
1,205

Customer collateral
1,698

 
1,648

Prepaid expenses and other current assets
163

 
141

Cash, cash equivalents, restricted cash and restricted cash equivalents
$
12,263

 
$
10,832


Note 4—U.S. and Europe Retrospective Responsibility Plans
U.S. Retrospective Responsibility Plan
Under the terms of the U.S. retrospective responsibility plan, the Company maintains an escrow account from which settlements of, or judgments in, certain litigation referred to as the “U.S. covered litigation” are paid. The escrow funds are held in money market investments along with interest income earned, less applicable taxes, and are classified as restricted cash equivalents on the consolidated balance sheets.
On December 13, 2019, the district court entered the final judgment order approving the Amended Settlement Agreement with the Damages Class plaintiffs in the Interchange Multidistrict Litigation proceedings. A takedown payment of approximately $467 million was received on December 27, 2019, and deposited into the Company’s litigation escrow account. The deposit into the litigation escrow account and reestablishment of a prior accrual to address opt-out claims was recorded during the three months ended December 31, 2019. The accrual related to the U.S. covered litigation could be either higher or lower than the litigation escrow account balance. See Note 13—Legal Matters.
The following table sets forth the changes in the restricted cash equivalents—U.S. litigation escrow account:
 
Three Months Ended
December 31,
 
2019
 
2018
 
(in millions)
Balance at beginning of period
$
1,205

 
$
1,491

Return of takedown payment to the litigation escrow account
467

 

Payments to opt-out merchants(1) and interest earned on escrow funds
(38
)
 
5

Balance at end of period
$
1,634

 
$
1,496

(1) 
These payments are associated with the Interchange Multidistrict Litigation. See Note 13—Legal Matters.

12

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Europe Retrospective Responsibility Plan
Visa Inc., Visa International and Visa Europe are parties to certain existing and potential litigation relating to the setting of multilateral interchange fee rates in the Visa Europe territory (the “VE territory covered litigation”). Under the terms of the Europe retrospective responsibility plan, the Company is entitled to recover certain losses resulting from VE territory covered litigation (the “VE territory covered losses”) through a periodic adjustment to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. VE territory covered losses are recorded in “right to recover for covered losses” within equity before the corresponding adjustment to the applicable conversion rate is effected. Adjustments to the conversion rate may be executed once in any six-month period unless a single, individual loss greater than €20 million is incurred, in which case, the six-month limitation does not apply. When the adjustment to the conversion rate is made, the amount previously recorded in “right to recover for covered losses” as contra-equity is then recorded against the book value of the preferred stock within stockholders’ equity. See Note 13—Legal Matters. There were no adjustments to the conversion rates during the three months ended December 31, 2019.
 
 
 
 
 
 

The following table sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders’ equity within the Company’s consolidated balance sheets as of December 31, 2019 and September 30, 2019:
 
December 31, 2019
 
September 30, 2019
 
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)
UK&I preferred stock
$
6,029

 
$
2,285

 
$
5,519

 
$
2,285

Europe preferred stock
8,236

 
3,177

 
7,539

 
3,177

Total
14,265

 
5,462

 
13,058

 
5,462

Less: right to recover for covered losses
(175
)
 
(175
)
 
(171
)
 
(171
)
Total recovery for covered losses available
$
14,090

 
$
5,287

 
$
12,887

 
$
5,291

(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
(2) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of December 31, 2019; (b) 12.936 and 13.884, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of December 31, 2019, respectively; and (c) $187.90, Visa’s class A common stock closing stock price as of December 31, 2019.
(3) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2019; (b) 12.936 and 13.884, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2019, respectively; and (c) $172.01, Visa’s class A common stock closing stock price as of September 30, 2019.

13

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 5—Fair Value Measurements and Investments
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
Fair Value Measurements
Using Inputs Considered as
 
Level 1
 
Level 2
 
December 31,
2019
 
September 30,
2019
 
December 31,
2019
 
September 30,
2019
 
(in millions)
Assets
 
 
 
 
 
 
 
Cash equivalents and restricted cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
7,539

 
$
6,494

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
$
350

 
$
150

Investment securities:
 
 
 
 
 
 
 
Marketable equity securities
154

 
126

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
4,565

 
5,592

U.S. Treasury securities
902

 
675

 
 
 
 
Other current and non-current assets:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
274

 
437

Total
$
8,595

 
$
7,295

 
$
5,189

 
$
6,179

Liabilities
 
 
 
 
 
 
 
Accrued compensation and benefits:
 
 
 
 
 
 
 
Deferred compensation liability
$
141

 
$
113

 
 
 
 
Accrued and other liabilities:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
$
99

 
$
52

Total
$
141

 
$
113

 
$
99

 
$
52


There were no transfers between Level 1 and Level 2 assets during the three months ended December 31, 2019.
Level 1 assets. 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 quoted prices in active markets. 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. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. Derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. There were no substantive changes to the valuation techniques and related inputs used to measure fair value during the three months ended December 31, 2019.
U.S. government-sponsored debt securities and U.S. Treasury securities. The Company considers U.S. government-sponsored debt securities and U.S. Treasury securities to be available-for-sale and held $5.5 billion and $6.3 billion of these investment securities as of December 31, 2019 and September 30, 2019, respectively. All of the Company’s long-term available-for-sale investment securities are due within one to five years.

14

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

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.
During the three months ended December 31, 2019, $9 million of upward adjustments and no downward adjustments were included in the carrying value of non-marketable equity securities. During the three months ended December 31, 2019 and 2018, there were no significant impairments. The following table summarizes the total carrying value of the Company’s non-marketable equity securities held as of December 31, 2019 including cumulative unrealized gains and losses:
 
December 31, 2019
 
(in millions)
Initial cost basis
$
595

Upward adjustments
119

Downward adjustments (including impairment)
(4
)
Carrying amount, end of period
$
710


Non-financial assets and liabilities. Long-lived assets such as goodwill, indefinite-lived intangible assets, finite-lived intangible assets and property, equipment and technology are considered non-financial assets. The Company does not have any non-financial liabilities measured at fair value on a non-recurring basis. Finite-lived intangible assets primarily consist of customer relationships and trade names, all of which were obtained through acquisitions.
If the Company were required to perform a quantitative assessment for impairment testing of goodwill and indefinite-lived intangible assets, the fair values would generally be estimated using an income approach. As the assumptions employed to measure these assets on a non-recurring basis are based on management’s judgment using internal and external data, these fair value determinations are classified as Level 3 in the fair value hierarchy. The Company completed its annual impairment review of its indefinite-lived intangible assets and goodwill as of February 1, 2019, and concluded that there was no impairment. No recent events or changes in circumstances indicate that impairment existed at December 31, 2019.
Gains and Losses on Marketable and Non-marketable Equity Securities
Gains and losses on the Company’s equity securities are summarized below.
 
Three Months Ended
December 31,
 
2019
 
2018
 
(in millions)
Net gain (loss) on equity securities sold during the period
$
4

 
$

Unrealized gain (loss) on equity securities held as of the end of the period
14

 
(20
)
Total gain (loss) recognized in non-operating income (expense), net
$
18

 
$
(20
)

Other Fair Value Disclosures
Long-term debt. Debt instruments are measured at amortized cost on the Company’s consolidated balance sheets. The fair value of the debt instruments, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of long-term debt was $16.7 billion and $18.3 billion, respectively, as of December 31, 2019. The carrying value and estimated fair value of long-term debt was $16.7 billion and $18.4 billion, respectively, as of September 30, 2019.

15

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Other financial instruments not measured at fair value. The following financial instruments are not measured at fair value on the Company’s unaudited consolidated balance sheet at December 31, 2019, but disclosure of their fair values is required: settlement receivable and payable, accounts receivable and customer collateral. The estimated fair value of such instruments at December 31, 2019 approximates their carrying value due to their generally short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 in the fair value hierarchy.
Note 6—Leases
The Company entered into various operating lease agreements primarily for real estate. The Company's leases have original lease periods expiring between fiscal 2020 and 2030. Many leases include one or more options to renew. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Payments under the Company’s lease arrangements are generally fixed. At December 31, 2019, the Company had no finance leases.
During the three months ended December 31, 2019, total operating lease cost was $26 million. At December 31, 2019, the weighted average remaining lease term for operating leases was approximately 7 years and the weighted average discount rate for operating leases was 2.31%.
At December 31, 2019, the present value of future minimum lease payments was as follows:
 
 
December 31, 2019
 
 
(in millions)
Remainder of 2020
 
$
82

2021
 
108

2022
 
93

2023
 
86