Visa 2009 Annual Report Download - page 95

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
Loans under the five-year facility may be in the form of: (1) Base Rate Advance, which will bear interest at a rate equal to the higher of the Federal
Funds Rate plus 0.5% or the Bank of America prime rate; (2) Eurocurrency Advance, which will bear interest at a rate equal to LIBOR (as adjusted for
applicable reserve requirements) plus an applicable cost adjustment and an applicable margin of 0.11% to 0.30% based on our credit rating; or (3) U.S. Swing
Loan, Euro Swing Loan, or Foreign Currency Swing Loan, which will bear interest at the rate equal to the applicable Swing Loan rate for that currency plus
the same applicable margin plus additionally for Euro and Sterling loans, an applicable reserve requirement and cost adjustment. The Company also agrees to
pay a facility fee on the aggregate commitment amount, whether used or unused, at a rate ranging from 0.04% to 0.10% and a utilization fee on loans at a rate
ranging from 0.05% to 0.10% based on the Company's credit rating. Currently, the applicable margin is 0.15%, the facility fee is 0.05% and the utilization fee
is 0.05%.
There are no borrowings under the revolving credit facility at September 30, 2009 and the Company is in compliance with all related covenants.
Note 11—Pension, Postretirement and Other Benefits
The Company sponsors various qualified and non-qualified defined benefit pension and postretirement benefit plans which provide for retirement and
medical benefits for substantially all employees residing in the United States. The Company uses a September 30 measurement date for its pension and
postretirement benefit plans.
Defined Benefit Pension Plan
The defined benefit pension plan benefits are based on years of service, age and the employee's highest average of any three consecutive years during
the final five years of earnings; and for employees hired after September 30, 2002, the employee's final five years of earnings. Expense for the pension
benefits is accrued levelly throughout an employee's career. The funding policy is to contribute annually no less than the minimum required contribution
under ERISA.
In August 2007, the Company approved changes to the pension plan and began transitioning from a traditional final average pay formula to a cash
balance formula for determining pension benefits, effective January 1, 2008. The cash balance formula will provide contributions at a rate of 6% of eligible
compensation and will credit interest on account balances at the 30 year Treasury Bond rate. Effective October 1, 2008, the pension plan was 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 plan provided a 50%
death benefit only to a participant's spouse.
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 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.
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 and recorded a curtailment gain of $2 million in fiscal 2008.
94