Visa 2008 Annual Report Download - page 143

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
The Company adopted the measurement date provisions of SFAS 158 at October 1, 2006, using the 15-month approach. Under this approach, Visa
U.S.A. recorded an additional 3 months of net periodic benefit cost covering the period between the previous measurement date of June 30, 2006 and
September 30, 2006. The benefit expense of $9 million, net of tax, was recorded as a reduction to beginning accumulated net loss at October 1, 2006.
Obligations and Funded Status
The following tables provide an aggregate reconciliation of the benefit obligations, plan assets, funded status and amounts recognized in Visa Inc.'s
consolidated financial statements in fiscal 2008, and Visa U.S.A.'s and Visa International's collective financial statements in fiscal 2007, related to the
qualified retirement plan and the non-qualified retirement plan (which primarily covers key executives), as well as those of the postretirement plan.
Pension Benefits
Other
Postretirement Benefits
2008 2007 2008 2007
(in millions)
Change in Projected Benefit Obligation/Accumulated Postretirement Benefit Obligation:
Benefit obligation-beginning of year $ 634 $ 660 $ 77 $ 74
Service cost 50 62 5 5
Interest cost 40 43 5 5
Plan amendments 4 (124) (26) —
Actuarial (gain)/loss 16 29 (7) (5)
Settlements 21 — — —
Benefit payments (98) (48) (4) (4)
Effect of change in measurement date — 12 — 2
Benefit obligation-end of year $ 667 $ 634 $ 50 $ 77
Accumulated benefit obligation $ 634 $ 572 NA NA
Change in Plan Assets:
Fair value of plan assets-beginning of year $ 604 $ 515 $ — $ —
Actual return on plan assets (68) 71 — —
Company contribution 186 61 4 4
Benefit payments (98) (48) (4) (4)
Effect of early measurement date elimination — 5 — —
Fair value of plan assets-end of year $ 624 $ 604 $ — $ —
Funded status at end of year $ (43) $ (30) $ (50) $ (77)
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