Visa 2008 Annual Report Download - page 142

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
Effective October 1, 2008, the pension plans were amended to provide death benefits of 100% of the value of the accrued benefit to a participant's
beneficiary or estate. Prior to this amendment, the plans provided a 50% death benefit only to a participant's spouse. This change resulted in an increase in the
pension plan benefit obligation at September 30, 2008 of approximately $4 million.
Postretirement Benefits Plan
The postretirement benefit plan provides medical benefits for retirees and dependents who meet minimum age and service requirements. Benefits are
provided from retirement date until age sixty-five. 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.
Postretirement Plan Amendment and Curtailment
In August 2008, the Company amended its postretirement benefits plan to discontinue the employer subsidy for all participants not yet retirement
eligible at December 31, 2008. This change caused a reduction in APBO of approximately $26 million. In connection with this amendment and curtailment of
benefits, the Company recorded a curtailment gain of $2 million in its fiscal 2008 consolidated statements of operations.
Effect of the Reorganization
As a result of the reorganization, described in Note 3-The Reorganization, purchase accounting entries were made eliminating amounts previously held
by Visa International and Inovant in accumulated other comprehensive income as follows:
Pension
Benefits
Other
Postretirement
Benefits
(in millions)
Actuarial (gain)/loss $ 43 $ 6
Prior service (credit)/cost (43) (4)
Total $ — $ 2
Adoption of New Accounting Standard
At September 30, 2007, the Company adopted the provisions of Statement of Financial Accounting Standard No. 158 (SFAS 158), Employers'
Accounting for Defined Benefit Pension and Other Postretirement Plans (an amendment of FASB Statements No. 87, 88, 106 and 132(R)), which requires
companies to recognize an asset or liability for the overfunded or underfunded status of their defined benefit pension and other postretirement benefit plans on
their balance sheet. Under SFAS 158, gains and losses, prior service costs and credits and any remaining transition amounts under SFAS 87 and SFAS 106
that have not yet been recognized through net periodic benefit cost are recognized in accumulated other comprehensive income, net of tax effects, until they
are amortized as a component of net periodic benefit cost. In addition, SFAS 158 requires that the measurement date, the date at which benefit obligations and
plan assets are measured, be the company's fiscal year end.
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