Visa 2010 Annual Report Download - page 102

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2010
(in millions, except as noted)
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.
On January 12, 2010, the Company approved an amendment to the pension plan to conform the plan to the Pension Protection Act of 2006. The
combined effects of the resulting plan remeasurement, as well as the completion of the annual census data update, reduced fiscal 2010 net periodic pension
cost by $19 million.
Effective August 1, 2010, participation in the plan was extended to former employees of CyberSource following its acquisition by the Company in July
2010. See Note 6—CyberSource Acquisition. The additional participants are not expected to materially increase the fiscal 2010 or future annual pension cost.
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 65. 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, resulting in a curtailment gain of $2 million in fiscal 2008.
Summary of Plan Activities
Change in Projected Benefit Obligation/Accumulated Postretirement Benefit Obligation:
Pension Benefits
Other
Postretirement Benefits
2010 2009 2010 2009
(in millions)
Benefit obligation-beginning of fiscal year $ 739 $ 667 $ 43 $ 50
Service cost 45 51 — —
Interest cost 40 46 1 2
Plan amendments (12) — — —
Actuarial loss (gain) 3 64 (6) (5)
Settlements — 4 — —
Benefit payments (72) (93) (4) (4)
Benefit obligation-end of fiscal year $ 743 $ 739 $ 34 $ 43
Accumulated benefit obligation $ 743 $ 720 NA NA
Change in Plan Assets:
Fair value of plan assets-beginning of fiscal year $ 703 $ 624 $ — $ —
Actual return on plan assets 73 6 — —
Company contribution 62 166 4 4
Benefit payments (72) (93) (4) (4)
Fair value of plan assets-end of fiscal year $ 766 $ 703 $ — $ —
Funded status at end of fiscal year $ 23 $ (36) $ (34) $ (43)
Recognized in Consolidated Balance Sheets:
Noncurrent asset $ 53 $ — $ — $ —
Current liability (10) (4) (4) (5)
Noncurrent liability (20) (32) (30) (38)
Funded status at end of fiscal year $ 23 $ (36) $ (34) $ (43)
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