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

12 Months Ended

Sep. 30, 2019

Retrospective Responsibility Plan [Abstract]

Changes in the U.S. litigation escrow account

The following table sets forth the changes in the restricted cash equivalents—U.S. litigation escrow account by fiscal year:

	2019			2018
	(in millions)
Balance at beginning of period	$	1,491		$	1,031
Deposits into the litigation escrow account	300			600
Payments to class plaintiffs’ settlement fund(1)	(600		)	—
Payments to opt-out merchants(1) and interest earned on escrow funds	14			(140		)
Balance at end of period	$	1,205		$	1,491

⁽¹⁾ These payments are associated with the interchange multidistrict litigation. See Note 20—Legal Matters.

Changes in Preferred Stock 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 year ended September 30, 2019. VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 20—Legal Matters.

	Preferred Stock						Right to Recover for Covered Losses
	UK&I			Europe
	(in millions)
Balance as of September 30, 2018	$	2,291		$	3,179		$	(7	)
VE territory covered losses incurred	—			—			(172		)
Recovery through conversion rate adjustment	(6		)	(2		)	8
Balance as of September 30, 2019	$	2,285		$	3,177		$	(171	)

Preferred Stock As-Converted Value and Book Value

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 September 30, 2019 and 2018:

	September 30, 2019						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	$	5,519		$	2,285		$	4,823		$	2,291
Europe preferred stock	7,539			3,177			6,580			3,179
Total	13,058			5,462			11,403			5,470
Less: right to recover for covered losses	(171		)	(171		)	(7		)	(7		)
Total recovery for covered losses available	$	12,887		$	5,291		$	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 September 30, 2019; (b) 12.936 and 13.884, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2019; and (c) $172.01, Visa’s class A common stock closing stock price as of September 30, 2019. Earnings per share is calculated based on unrounded numbers.

⁽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 outstanding, respectively, as of September 30, 2018; and (c) $150.09, Visa’s class A common stock closing stock price as of September 30, 2018. Earnings per share is calculated based on unrounded numbers.