Pension and Other Postretirement Benefits

9 Months Ended

Jun. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits

Note 6—Pension and Other Postretirement Benefits

The Company sponsors various qualified and non-qualified defined benefit pension and other postretirement benefit plans that provide for retirement and medical benefits for substantially all employees residing in the U.S. The Company also sponsors other pension benefit plans that provide benefits for internationally-based employees at certain non-U.S. locations, which are not presented below as they are not material.

As a result of the acquisition of Visa Europe, the Company assumed the obligations related to Visa Europe's defined benefit plan, which primarily consists of the U.K. funded and unfunded pension plans, under which retirement benefits are provided based on the participants' final pensionable pay. Currently, Visa Europe U.K. pension plans are closed to new entrants, but future benefits continue to accrue for active participants. The amounts and disclosures presented below do not include Visa Europe pension plans as the net periodic pension cost for this quarter is not material.

In October 2015, the Company's board of directors approved an amendment of the U.S. qualified defined benefit pension plan such that the Company discontinued employer provided credits after December 31, 2015. Plan participants continue to earn interest credits on existing balances at the time of the freeze. As a result, a curtailment gain totaling $8 million was recognized as part of the Company's net periodic benefit cost. The Company also recorded a net unrealized actuarial gain of $56 million from the remeasurement of its pension plan in the first quarter of fiscal 2016 within other comprehensive income.

The components of net periodic benefit cost, excluding Visa Europe's defined benefit plan, are as follows:

	Pension Benefits												Other Postretirement Benefits
	Three Months Ended June 30,						Nine Months Ended June 30,						Three Months Ended June 30,						Nine Months Ended June 30,
	2016			2015			2016			2015			2016			2015			2016			2015
	(in millions)
Service cost	$	—		$	12		$	13		$	35		$	—		$	—		$	—		$	—
Interest cost	9			10			30			30			—			—			—			—
Expected return on assets	(17		)	(18		)	(52		)	(54		)	—			—			—			—
Amortization of:
Prior service credit	—			(2		)	(1		)	(5		)	—			—			(2		)	(2		)
Actuarial loss (gain)	2			—			6			—			(1		)	(1		)	(1		)	(1		)
Curtailment gain	—			—			(8		)	—			—			—			—			—
Settlement loss	—			1			—			5			—			—			—			—
Total net periodic benefit cost	$	(6	)	$	3		$	(12	)	$	11		$	(1	)	$	(1	)	$	(3	)	$	(3	)