U.S. and Europe Retrospective Responsibility Plans (Tables)

3 Months Ended

Dec. 31, 2018

Retrospective Responsibility Plan [Abstract]

Schedule of Activities Related to Territory Covered Losses and Right to Recover for Covered Losses

The following table sets forth the activities related to VE territory covered losses in preferred stock and “right to recover for covered losses” within equity during the three months ended December 31, 2018. VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 13—Legal Matters.



	Preferred Stock						Right to Recover for Covered Losses
	UK&I			Europe			Right to Recover for Covered Losses
	(in millions)
Balance as of September 30, 2018	$	2,291		$	3,179		$	(7	)
VE territory covered losses incurred	—			—			(91		)
Recovery through conversion rate adjustment	(5		)	(1		)	6
Balance as of December 31, 2018	$	2,286		$	3,178		$	(92	)

Schedule of As-converted and Book Value of Preferred Stock Available to Recover Europe Covered Losses

The following table⁽¹⁾ sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders’ equity within the Company’s consolidated balance sheets as of December 31, 2018 and September 30, 2018:



	December 31, 2018						September 30, 2018
	As-Converted Value of Preferred Stock⁽²⁾			Book Value of Preferred Stock			As-Converted Value of Preferred Stock⁽³⁾			Book Value of Preferred Stock
	(in millions)
UK&I preferred stock	$	4,235		$	2,286		$	4,823		$	2,291
Europe preferred stock	5,784			3,178			6,580			3,179
Total	10,019			5,464			11,403			5,470
Less: right to recover for covered losses	(92		)	(92		)	(7		)	(7		)
Total recovery for covered losses available	$	9,927		$	5,372		$	11,396		$	5,463


⁽¹⁾	Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.

⁽²⁾

The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of December 31, 2018; (b)12.939 and 13.886, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of December 31, 2018, respectively; and (c) $131.94, Visa’s class A common stock closing stock price as of December 31, 2018.

⁽³⁾

The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2018; (b)12.955 and 13.888, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2018, respectively; and (c) $150.09, Visa’s class A common stock closing stock price as of September 30, 2018.