Visa 2007 Annual Report Download - page 137

Table of Contents
VISA U.S.A. INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The assumed annual rate of future increases in per capita cost of health benefits for the postretirement plan was 8% in fiscal 2007. The rate is assumed
to decrease to 6% by 2009 and remain at that level thereafter. These trend rates reflect management's expectations of future rates. Increasing the healthcare
cost trend by 1% would increase the postretirement accumulated plan benefit obligation by $1.3 million and service and interest cost by $0.2 million.
Decreasing the healthcare cost trend by 1% would decrease the postretirement accumulated plan benefit obligation by $1.2 million and the service and interest
cost by $0.2 million.
Pension Plan Assets
The pension plan's weighted-average asset allocations at September 30, 2007 and 2006 by asset category were as follows:
Target
Allocation
Target Allocation Range Actual
Allocation
Asset Class Minimum Maximum 2007 2006
Equity Securities 65% 50% 80% 66% 68%
Fixed Income 30% 25% 35% 29% 30%
Other 5% 0% 7% 5% 2%
Total 100% 100% 100%
Plan assets are managed with a long-term perspective to ensure that there is an adequate level of assets to support benefit payments to participants over
the life of the pension plan. Plan assets are managed by external investment managers. Investment manager performance is measured against benchmarks for
each asset class on a quarterly basis. An independent consultant assists management with investment manager selections and performance evaluations. Plan
assets are broadly diversified to minimize the risk of loss. The other category includes cash that is available to meet expected benefit payments and expenses.
Cash Flows
The following table presents the actual contributions made by the Company from its employer assets for fiscal 2007 and 2006:
Total
Pension
Benefits
Visa
U.S.A.'s
Portion
Total
Postretirement
Benefits
Visa
U.S.A.'s
Portion
(in thousands)
Actual employer contributions
Fiscal 2007 $ 60,880 $ 48,004 $ 3,735 $ 2,618
Fiscal 2006 55,250 43,286 2,938 1,987
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