Visa 2015 Annual Report Download - page 117

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
Pension Plan Assets
Pension 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.
Pension 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.
Pension plan assets are broadly diversified to maintain a prudent level of risk and to provide
adequate liquidity for benefit payments. The Company generally evaluates and rebalances the pension
plan assets, as appropriate, to ensure that allocations are consistent with target allocation ranges. The
current target allocation for pension plan assets is as follows: equity securities of 50% to 80%, fixed
income securities of 25% to 35% and other, primarily consisting of cash equivalents to meet near term
expected benefit payments and expenses, of up to 7%. At September 30, 2015, pension plan asset
allocations for the above categories were 66%, 33% and 1%, 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, 2015 and 2014, including the impact of unsettled
transactions:
Fair Value Measurements at September 30,
Level 1 Level 2 Level 3 Total
2015 2014 2015 2014 2015 2014 2015 2014
(in millions)
Cash equivalents ........... $11 $22 $11$22
Corporate debt securities .... $ 169 $ 144 169 144
U.S. government-sponsored
debt securities(1) ............ 66 106 66 106
U.S. Treasury securities(1) .... 74 53 74 53
Asset-backed securities ...... $31 $25 31 25
Equity securities ............ 671 767 671 767
Total ..................... $ 756 $ 842 $ 235 $ 250 $31 $25 $ 1,022 $ 1,117
(1) U.S. Treasury securities are Level 1 assets, but were previously presented in aggregate with U.S.
government-sponsored debt securities as Level 2. The Company now presents U.S. Treasury
securities separately for disclosure purposes. There were no changes to the valuation techniques or
related inputs used to measure fair value. Prior period amounts reflect the change in presentation.
Level 1 assets. Cash equivalents (money market funds), U.S. Treasury securities 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 U.S. 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
104