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Table of Contents VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2012
balance formula. Effective January 1, 2011, all employees began accruing benefits under the cash balance formula and ceased
accruing benefits under any other formula. An employee’s cash balance account is credited with an amount equal to 6% of eligible
compensation plus interest based on 30-year Treasury securities. The funding policy is to contribute annually no less than the
minimum required contribution under ERISA.
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.
Summary of Plan Activities
Change in Benefit Obligation:
85
Pension Benefits
Other
Postretirement Benefits
September 30,
September 30,
2012
2011
2012
2011
(in millions)
Benefit obligation—beginning of fiscal year
$
839
$
743
$
38
$
34
Service cost
38
41
—
—
Interest cost
40
38
1
1
Actuarial loss (gain)
132
77
(3
)
7
Benefit payments
(60
)
(63
)
(4
)
(4
)
Settlements
1
3
—
—
Benefit obligation—end of fiscal year
$
990
$
839
$
32
$
38
Accumulated benefit obligation
$
982
$
839
NA
NA
Change in Plan Assets:
Fair value of plan assets—beginning of fiscal year
$
783
$
766
$
—
$
—
Actual return on plan assets
166
10
—
—
Company contribution
84
70
4
4
Benefit payments
(60
)
(63
)
(4
)
(4
)
Fair value of plan assets—end of fiscal year
$
973
$
783
$
—
$
—
Funded status at end of fiscal year
$
(17
)
$
(56
)
$
(32
)
$
(38
)
Recognized in Consolidated Balance Sheets:
Non-current asset
$
23
$
—
$
—
$
—
Current liability
(8
)
(4
)
(4
)
(4
)
Non-current liability
(32
)
(52
)
(28
)
(34
)
Funded status at end of fiscal year
$
(17
)
$
(56
)
$
(32
)
$
(38
)