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Table of Contents VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2012
Net periodic pension and other postretirement plan cost:
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Weighted Average Actuarial Assumptions:
87
Pension Benefits
Other
Postretirement Benefits
Fiscal
2012
2011
2010
2012
2011
2010
(in millions)
Service cost
$
38
$
41
$
45
$
—
$
—
$
—
Interest cost
40
38
40
1
1
1
Expected return on assets
(55
)
(54
)
(50
)
—
—
—
Amortization of:
Prior service credit
(9
)
(9
)
(9
)
(3
)
(3
)
(3
)
Actuarial loss (gain)
33
19
16
—
(
1
)
(1
)
Net benefit cost
$
47
$
35
$
42
$
(2
)
$
(3
)
$
(3
)
Settlement loss
3
2
—
—
—
—
Total net periodic benefit cost
$
50
$
37
$
42
$
(2
)
$
(3
)
$
(3
)
Pension Benefits
Other
Postretirement Benefits
2012
2011
2012
2011
(in millions)
Current year actuarial loss (gain)
$
21
$
124
$
(3
)
$
7
Amortization of actuarial (loss) gain
(36
)
(21
)
—
1
Amortization of prior service credit
9
9
3
3
Total (gain) loss recognized in other comprehensive income
$
(6
)
$
112
$
—
$
11
Total recognized in net periodic benefit cost and other comprehensive income
$
44
$
149
$
(2
)
$
8
Fiscal
2012
2011
2010
Discount rate for benefit obligation
(1)
Pension
3.85
%
4.70
%
5.25
%
Postretirement
2.21
%
3.39
%
3.45
%
Discount rate for net periodic benefit cost
Pension
4.70
%
5.25
%
5.63
%
Postretirement
3.39
%
3.45
%
4.43
%
Expected long-term rate of return on plan assets
(2)
7.50
%
7.50
%
7.50
%
Rate of increase in compensation levels for:
Benefit obligation
4.50
%
4.50
%
4.50
%
Net periodic benefit cost
4.50
%
4.50
%
5.50
%
(1)
Based on a “bond duration matching” methodology, which reflects the matching of projected plan liability cash flows to an
average of high-quality corporate bond yield curves whose duration matches the projected cash flows.
(2)
Primarily based on the targeted allocation, and evaluated for reasonableness by considering such factors as: