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

3 Months Ended

Dec. 31, 2023

Retrospective Responsibility Plans [Abstract]

Changes in the U.S. litigation escrow account

The following table presents the changes in the restricted cash equivalents—U.S. litigation escrow account:

	Three Months Ended December 31,
	2023		2022
	(in millions)
Balance as of beginning of period	$	1,764	$	1,449
Deposits into the U.S. litigation escrow account	—		350
Payments to opt-out merchants(1), net of interest earned on escrow funds	(148)		(94)
Balance as of end of period	$	1,616	$	1,705

(1)These payments are associated with the interchange multidistrict litigation. See Note 13—Legal Matters.

Changes in Preferred Stock and Right to Recover for Covered Losses

The following table presents the activities related to VE territory covered losses in preferred stock and right to recover for covered losses within stockholders’ equity:

	Three Months Ended December 31, 2023
	Preferred Stock				Right to Recover for Covered Losses
	Series B		Series C
	(in millions)
Balance as of beginning of period	$	441	$	801	$	(140)
VE territory covered losses incurred(1)	—		—		(24)
Recovery through conversion rate adjustment	(22)		(3)		25
Balance as of end of period	$	419	$	798	$	(139)

	Three Months Ended December 31, 2022
	Preferred Stock				Right to Recover for Covered Losses
	Series B		Series C
	(in millions)
Balance as of beginning of period	$	460	$	812	$	(35)
VE territory covered losses incurred(1)	—		—		(8)
Recovery through conversion rate adjustment(2)	(7)		(7)		15
Balance as of end of period	$	453	$	805	$	(28)

(1)VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 13—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 presents the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred stock recorded within the Company’s consolidated balance sheets:

	December 31, 2023				September 30, 2023
	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)
Series B preferred stock	$	1,875	$	419	$	1,676	$	441
Series C preferred stock	2,979		798		2,635		801
Total	4,854		1,217		4,311		1,242
Less: right to recover for covered losses	(139)		(139)		(140)		(140)
Total recovery for covered losses available	$	4,715	$	1,078	$	4,171	$	1,102

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

(2)As of December 31, 2023, the as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the series B and C preferred stock outstanding, respectively; (b) 2.903 and 3.625, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) $260.35, Visa’s class A common stock closing stock price.

(3)As of September 30, 2023, the as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the series B and C preferred stock outstanding, respectively; (b) 2.937 and 3.629, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) $230.01, Visa’s class A common stock closing stock price.