Visa 2014 Annual Report Download - page 117

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2014
expected benefit payments and expenses, of up to 7%. At September 30, 2014, pension plan asset
allocations for the above categories were 69%, 29% and 2%, respectively, which were within target
allocation ranges.
The following table sets forth by level, within the fair value hierarchy, the pension plan’s
investments at fair value as of September 30, 2014 and 2013, including the impact of unsettled
transactions:
Fair Value Measurements at September 30,
Level 1 Level 2 Level 3 Total
2014 2013 2014 2013 2014 2013 2014 2013
(in millions)
Cash equivalents .............. $22$26 $22$26
Corporate debt securities ....... $ 144 $ 106 144 106
Debt securities of U.S. Treasury
and federal agencies ........... 159 149 159 149
Asset-backed securities ......... $25 $23 25 23
Equity securities ............... 767 751 767 751
Total ........................ $ 789 $ 777 $ 303 $ 255 $25 $23 $ 1,117 $ 1,055
Level 1 assets. Cash equivalents (money market funds) and equity securities are classified as
Level 1 within the fair value hierarchy, as fair value is based on quoted prices in active markets.
Level 2 assets. The fair values of government-sponsored and corporate debt securities are based
on quoted prices in active markets for similar assets as provided by third-party pricing vendors. This
pricing data is reviewed internally for reasonableness through comparisons with benchmark quotes
from independent third-party sources. Based on this review, the valuation is confirmed or revised
accordingly.
Level 3 assets. Asset-backed securities are bonds that are backed by various types of assets and
primarily consist of mortgage-backed securities. Asset-backed securities are classified as Level 3 due
to a lack of observable inputs in measuring fair value.
There were no transfers between Level 1 and Level 2 assets during fiscal 2014 or 2013. A
separate roll-forward of Level 3 plan assets measured at fair value is not presented because activities
during fiscal 2014 and 2013 were immaterial.
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