Visa 2015 Annual Report Download - page 113

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
Credit facility. On January 28, 2015, the Company entered into an unsecured $3.0 billion revolving
credit facility (the “Credit Facility”). The Credit Facility, which expires on January 27, 2016, replaced the
Company’s previous $3.0 billion credit facility, which terminated on January 28, 2015. The Credit
Facility contains covenants and events of default customary for facilities of this type. The participating
lenders in the Credit Facility include affiliates of certain holders of the Company’s class B and class C
common stock and some of the Company’s clients or affiliates of its clients. This facility is maintained
to provide liquidity in the event of settlement failures by the Company’s clients, to back up the
commercial paper program and for general corporate purposes.
Interest on borrowings under the Credit Facility would be charged at the London Interbank Offered
Rate or an alternative base rate, in each case plus applicable margins that fluctuate based on the
applicable credit rating of the Company’s senior unsecured long-term debt. Visa also agreed to pay a
commitment fee, which will fluctuate based on the credit rating of the Company’s senior unsecured
long-term debt. Currently, the applicable margin is 0.00% to 0.75% depending on the type of the loan,
and the commitment fee is 0.07%. There were no borrowings under either facility and the Company
was in compliance with all related covenants during the year ended and as of September 30, 2015.
Note 10—Pension, Postretirement and Other Benefits
The Company sponsors various qualified and non-qualified defined benefit pension and other
postretirement benefit plans that provide for retirement and medical benefits for substantially all
employees residing in the United States. The Company also sponsors other pension benefit plans that
provide benefits for internationally-based employees at certain non-U.S. locations, which are not
presented below as they are not material. The Company uses a September 30 measurement date for
its pension and other postretirement benefit plans.
Defined benefit pension plans. The benefits under the current defined benefit pension plan are
earned based on a cash balance formula. An employee’s cash balance account is credited with an
amount equal to 6% of eligible compensation plus interest based on 30-year Treasury securities. The
funding policy is to contribute annually no less than the minimum required contribution under ERISA.
Postretirement benefits plan. The postretirement benefits plan provides medical benefits for
retirees and dependents who meet minimum age and service requirements. Benefits are provided from
retirement date until age 65. Retirees must contribute on a monthly basis for the same coverage that is
generally available to active employees and their dependents. The Company’s contributions are
funded on a current basis.
100