Visa 2014 Annual Report Download - page 76

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and record adjustments as necessary. In the determination of the fair value of the put option at
September 30, 2014, we have assumed a 40% probability of exercise by Visa Europe at some point in
the future and a P/E differential, at the time of exercise, of approximately 1.9x. The use of a probability
of exercise 5% higher than our estimate would have resulted in an increase of approximately $18
million in the value of the put option. An increase of 1.0x in the assumed P/E differential would have
resulted in an increase of approximately $84 million in the value of the put option. See Liquidity and
Capital Resources and Critical Accounting Estimates above.
Pension Plan Risk
At September 30, 2014 and 2013, our U.S. defined benefit pension plan assets were $1.1 billion,
and projected benefit obligations were $983 million and $897 million, respectively. A material adverse
decline in the value of pension plan assets and/or the discount rate for benefit obligations would result
in a decrease in the funded status of the pension plan, an increase in pension cost and an increase in
required funding. We will continue to monitor the performance of pension plan assets and market
conditions as we evaluate the amount of our contribution to the pension plan for fiscal 2015, if any,
which would be made in September 2015.
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