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

3 Months Ended

Dec. 31, 2021

Retrospective Responsibility Plan [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,
	2021		2020
	(in millions)
Balance at beginning of period	$	894	$	901
Deposits into the litigation escrow account	250		—

Payments to opt-out merchants(1) and interest earned on escrow funds	—		(7)
Balance at end of period	$	1,144	$	894

(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:



	Preferred Stock				Right to Recover for Covered Losses
	Series B		Series C
	(in millions)
Balance as of September 30, 2021	$	1,071	$	1,523	$	(133)
VE territory covered losses incurred(1)	—		—		(7)
Recovery through conversion rate adjustment	(26)		(3)		29
Balance as of December 31, 2021	$	1,045	$	1,520	$	(111)


	Preferred Stock				Right to Recover for Covered Losses
	Series B		Series C
	(in millions)
Balance as of September 30, 2020	$	1,106	$	1,543	$	(39)
VE territory covered losses incurred(1)	—		—		(10)
Recovery through conversion rate adjustment	(9)		(6)		15
Balance as of December 31, 2020	$	1,097	$	1,537	$	(34)

(1)VE territory covered losses incurred reflect settlements with merchants and additional legal costs. See Note 13—Legal Matters.

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 in stockholders’ equity within the Company’s consolidated balance sheets:


	December 31, 2021				September 30, 2021
	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	$	3,371	$	1,045	$	3,493	$	1,071
Series C preferred stock	4,672		1,520		4,806		1,523
Total	8,043		2,565		8,299		2,594
Less: right to recover for covered losses	(111)		(111)		(133)		(133)
Total recovery for covered losses available	$	7,932	$	2,454	$	8,166	$	2,461

(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, 2021, 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) 6.271 and 6.829, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) $216.71, Visa’s class A common stock closing stock price.

(3)As of September 30, 2021, 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) 6.321 and 6.834, the class A common stock conversion rate applicable to the series B and C preferred stock outstanding, respectively; and (c) $222.75, Visa’s class A common stock closing stock price.