Visa 2009 Annual Report Download - page 99

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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
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. 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. Plan
assets are broadly diversified to maintain a prudent level of risk. The other category includes cash that is available to meet expected benefit payments and
expenses. Pension plan assets in the other category increased on September 30, 2008 due to an additional contribution made on the last day of the plan year, to
ensure ERISA contribution requirements were met. The amount was reinvested subsequently in line with target asset allocations.
Cash Flows
Pension
Benefits
Other
Postretirement
Benefits
Actual employer contributions (in millions)
Fiscal 2009 $ 166 $ 4
Fiscal 2008 $ 186 $ 4
Expected employer contributions
2010 $ 65 $ 4
Expected benefit payments
2010 $ 96 $ 4
2011 103 5
2012 94 5
2013 88 5
2014 88 5
2015-2019 367 21
Other Benefits
The Company participates in a defined contribution plan, which covers substantially all of its employees residing in the United States. Personnel costs
included $28 million, $33 million and $26 million in fiscal 2009, 2008 and 2007, respectively, for expenses attributable to the Company's employees under
the plan. The Company's contributions to this plan are funded on a current basis, and the related expenses are recognized in the period that the payroll
expenses are incurred.
Note 12—Settlement Guarantee Management
The Company indemnifies customers for settlement losses suffered due to failure of any other customer to honor Visa cards, travelers cheques, deposit
access products, point-of-sale check service drivers and other instruments processed in accordance with the operating regulations. This indemnification
creates settlement risk for the Company due to the difference in timing between the date of a payment transaction and the date of subsequent settlement. The
term and amount of the indemnification are unlimited. Settlement at risk (or exposure) is estimated based on the sum of the following inputs: (1) average daily
volumes during the quarter multiplied by the estimated number of days to settle plus a safety margin; (2) four months of rolling average chargebacks volume;
and (3) the
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