Visa 2015 Annual Report Download - page 116

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VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
Other changes in plan assets and benefit obligations recognized in other comprehensive
income:
Other
Postretirement BenefitsPension Benefits
2015 2014 2015 2014
(in millions)
Current year actuarial loss (gain) .................... $ 119 $18 $—$ (2)
Amortization of actuarial (loss) gain .................. (8) (4) 21
Current year prior service credit ..................... —(3) ——
Amortization of prior service credit ................... 711 33
Total recognized in other comprehensive income ....... $ 118 $22 $5$2
Total recognized in net periodic benefit cost and other
comprehensive income ............................ $ 134 $35 $1$ (1)
Weighted Average Actuarial Assumptions:
Fiscal
2015 2014 2013
Discount rate for benefit obligation:(1)
Pension ..................................................... 4.33% 4.27% 4.81%
Postretirement ................................................ 2.43% 2.59% 2.76%
Discount rate for net periodic benefit cost:
Pension ..................................................... 4.27% 4.81% 3.85%
Postretirement ................................................ 2.59% 2.76% 2.21%
Expected long-term rate of return on plan assets(2) .................. 7.00% 7.00% 7.00%
Rate of increase in compensation levels for:
Benefit obligation .............................................. 4.00% 4.00% 4.50%
Net periodic benefit cost ........................................ 4.00% 4.50% 4.50%
(1) Based on a “bond duration matching” methodology, which reflects the matching of projected plan
liability cash flows to an average of high-quality corporate bond yield curves whose duration
matches the projected cash flows.
(2) Primarily based on the targeted allocation, and evaluated for reasonableness by considering such
factors as: (i) actual return on plan assets; (ii) historical rates of return on various asset classes in
the portfolio; (iii) projections of returns on various asset classes; and (iv) current and prospective
capital market conditions and economic forecasts.
The assumed annual rate of future increases in health benefits for the other postretirement
benefits plan is 8% for fiscal 2016. The rate is assumed to decrease to 5% by 2021 and remain at that
level thereafter. These trend rates reflect management’s expectations of future rates. Increasing or
decreasing the healthcare cost trend by 1% would change the postretirement plan benefit obligation by
less than $1 million.
103