Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Schedule of U.S. and non-U.S. components of income before income tax expense/(benefit)

The Company’s income before taxes by fiscal year consisted of the following:

	2016		2015		2014
	(in millions)
U.S.	$	5,839	$	7,214	$	6,140
Non-U.S.	2,173		1,781		1,584
Total income before taxes	$	8,012	$	8,995	$	7,724

Comprehensive Income Tax (Expense) Benefit Components Table

Income tax provision by fiscal year consisted of the following:

	2016			2015		2014
	(in millions)
Current:
U.S. federal	$	2,250		$	1,991	$	2,353
State and local	181			168		237
Non-U.S.	368			300		274
Total current taxes	2,799			2,459		2,864
Deferred:
U.S. federal	(508		)	181		(576		)
State and local	(63		)	1		(31		)
Non-U.S.	(207		)	26		29
Total deferred taxes	(778		)	208		(578		)
Total income tax provision	$	2,021		$	2,667	$	2,286

Components of Deferred Tax Assets and Liabilities

The tax effect of temporary differences that give rise to significant portions of deferred tax assets and liabilities at September 30, 2016 and 2015, are presented below:

	2016			2015
	(in millions)
Deferred Tax Assets:
Accrued compensation and benefits	$	277		$	141
Comprehensive (income) loss	106			51
Accrued litigation obligation	373			391
Client incentives	266			191
Net operating loss carryforwards	32			50
Federal benefit of state taxes	195			203
Federal benefit of foreign taxes	1,214			—
Other	280			185
Valuation allowance	(31		)	(40		)
Deferred tax assets	2,712			1,172
Deferred Tax Liabilities:
Property, equipment and technology, net	(278		)	(315		)
Intangible assets	(7,013		)	(3,964		)
Foreign taxes	(106		)	(153		)
Other	(101		)	—
Deferred tax liabilities	(7,498		)	(4,432		)
Net deferred tax liabilities	$	(4,786	)	$	(3,260	)

Reconciliation of the US Statutory Federal Tax Rate

The income tax provision differs from the amount of income tax determined by applying the applicable U.S. federal statutory rate of 35% to pretax income, as a result of the following:

	For the Years Ended September 30,
	2016					2015					2014
	Dollars			Percent		Dollars			Percent		Dollars			Percent
	(in millions, except percentages)
U.S. federal income tax at statutory rate	$	2,804		35	%	$	3,148		35	%	$	2,704		35	%
State income taxes, net of federal benefit	135			2	%	194			2	%	129			2	%
Non-U.S. tax effect, net of federal benefit	(553		)	(7	)%	(327		)	(4	)%	(278		)	(4	)%
Prior years U.S. domestic production activities deduction	—			—	%	—			—	%	(191		)	(2	)%
Remeasurement of deferred tax liability	(88		)	(1	)%	—			—	%	—			—	%
Reversal of prior years tax reserves related to the resolution of uncertain tax positions	—			—	%	(239		)	(2	)%	—			—	%
Revaluation of Visa Europe put option	(89		)	(1	)%	—			—	%	—			—	%
Other, net	(188		)	(3	)%	(109		)	(1	)%	(78		)	(1	)%
Income tax provision	$	2,021		25	%	$	2,667		30	%	$	2,286		30	%

Unrecognized Tax Benefits Reconciliation, Table

A reconciliation of beginning and ending unrecognized tax benefits by fiscal year is as follows:

	2016			2015
	(in millions)
Beginning balance at October 1	$	1,051		$	1,303
Increases of unrecognized tax benefits related to prior years	153			44
Decreases of unrecognized tax benefits related to prior years	(180		)	(413		)
Increases of unrecognized tax benefits related to current year	138			120
Reductions related to lapsing statute of limitations	(2		)	(3		)
Ending balance at September 30	$	1,160		$	1,051