Visa 2013 Annual Report Download - page 105

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2013
The following table sets forth by level, within the fair value hierarchy, the pension plan’s
investments at fair value as of September 30, 2013 and 2012, including the impact of unsettled
transactions:
Fair Value Measurements at September 30,
Level 1 Level 2 Level 3 Total
2013 2012 2013 2012 2013 2012 2013 2012
(in millions)
Cash equivalents .............. $26$79 $26$79
Collective investment funds ...... $—$ 391 —391
Corporate debt securities ........ 106 115 106 115
Debt securities of U.S. Treasury
and federal agencies ........... 149 121 149 121
Asset-backed securities ......... $23 $25 23 25
Equity securities ............... 751 242 751 242
Total ......................... $ 777 $ 321 $ 255 $ 627 $23 $25 $ 1,055 $ 973
Level 1 assets. Cash equivalents (money market funds) and equity securities are classified as
Level 1 within the fair value hierarchy, as fair value is based on quoted prices in active markets.
Level 2 assets. The fair values of government-sponsored and corporate debt securities are based on
quoted prices in active markets for similar assets as provided by third-party pricing vendors. This pricing
data is reviewed internally for reasonableness through comparisons with benchmark quotes from
independent third-party sources. Based on this review, the valuation is confirmed or revised accordingly.
Collective investment funds are unregistered investment vehicles that commingle the assets of multiple
fiduciary clients, such as pension and other employee benefits plans, to invest in portfolios of stocks,
bonds or other securities. A single collective investment fund, previously held by the pension plan, was
ultimately invested in common stocks of companies in the S&P 500 index, and as its own unit value was
not directly observable, it was therefore classified as Level 2.
Level 3 assets. Asset-backed securities are bonds that are backed by various types of assets and
primarily consist of mortgage-backed securities. Asset-backed securities are classified as Level 3 due
to a lack of observable inputs in measuring fair value.
There were no transfers between Level 1 and Level 2 assets during fiscal 2013 or 2012. A
separate roll-forward of Level 3 plan assets measured at fair value is not presented because activities
during fiscal 2013 and 2012 were immaterial.
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