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

12 Months Ended

Sep. 30, 2020

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:

	2020		2019
	(in millions)
Balance at beginning of period	$	1,205	$	1,491
Return of takedown payment to the litigation escrow account	467		—
Deposits into the litigation escrow account	—		300
Payments to class plaintiffs’ settlement fund(1)	—		(600)
Payments to opt-out merchants(1) and interest earned on escrow funds	(771)		14
Balance at end of period	$	901	$	1,205

(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 stockholders’ equity during the year ended September 30, 2020:

	Preferred Stock				Right to Recover for Covered Losses
	UK&I		Europe
	(in millions)
Balance as of September 30, 2019	$	2,285	$	3,177	$	(171)
VE territory covered losses incurred(1)	—		—		(37)
Recovery through conversion rate adjustment(2)	(72)		(92)		169
Fourth anniversary release	(1,107)		(1,542)		—
Balance as of September 30, 2020	$	1,106	$	1,543	$	(39)

(1)VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 20—Legal Matters.

(2)Adjustment to right to recover for covered losses for the conversion rate adjustment differs from the actual recovered amount due to differences in foreign exchange rates between the time the losses were incurred and the subsequent recovery through the conversion rate adjustment.

Preferred Stock As-Converted Value and Book Value

The following table 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, 2020 and 2019:

	September 30,
	2020				2019
	As-converted Value of Preferred Stock(1),(2)		Book Value of Preferred Stock(1)		As-converted Value of Preferred Stock(1),(3)		Book Value of Preferred Stock(1)
	(in millions)
UK&I preferred stock	$	3,168	$	1,106	$	5,519	$	2,285
Europe preferred stock	4,331		1,543		7,539		3,177
Total	7,499		2,649		13,058		5,462
Less: right to recover for covered losses	(39)		(39)		(171)		(171)
Total recovery for covered losses available	$	7,460	$	2,610	$	12,887	$	5,291

(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, 2020; (b) 6.387 and 6.861, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2020; and (c) $199.97, Visa’s class A common stock closing stock price as of September 30, 2020.

(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, 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.