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Fair Value Measurements and Investments | 12 Months Ended
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Sep. 30, 2016
Fair Value Measurements and Investments [Abstract] |
Fair Value Measurements and Investments | Note 4—Fair Value Measurements and Investments Fair Value Measurements The Company measures certain assets and liabilities at fair value. See Note 1—Summary of Significant Accounting Policies. Assets and Liabilities Measured at Fair Value on a Recurring Basis
| Fair Value Measurements at September 30 Using Inputs Considered as
| Level 1 |  | Level 2 |  | Level 3
| 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015
| (in millions)
Assets |  |  |  |  |  |  |  |  |  |  |
Cash equivalents and restricted cash: |  |  |  |  |  |  |  |  |  |  |
Money market funds | $ | 4,537 |  |  | $ | 3,051 |  |  |  |  |  |  |  |  |
U.S. government-sponsored debt securities |  |  |  |  | $ | 196 |  |  | $ | 280 |  |  |  |  |
Investment securities, trading: |  |  |  |  |  |  |  |  |  |  |
Equity securities | 71 |  |  | 66 |  |  |  |  |  |  |  |  |
Investment securities, available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government-sponsored debt securities |  |  |  |  | 4,699 |  |  | 2,615 |  |  |  |  |
U.S. Treasury securities | 2,178 |  |  | 2,656 |  |  |  |  |  |  |  |  |
Equity securities | 53 |  |  | 4 |  |  |  |  |  |  |  |  |
Corporate debt securities |  |  |  |  | 249 |  |  | 533 |  |  |  |  |
Auction rate securities |  |  |  |  |  |  |  |  | $ | — |  |  | $ | 7 |
Prepaid and other current assets: |  |  |  |  |  |  |  |  |  |  |
Foreign exchange derivative instruments |  |  |  |  | 50 |  |  | 76 |  |  |  |  |
Other Assets: |  |  |  |  |  |  |  |  |  |  |
Foreign exchange derivative instruments |  |  |  |  | 6 |  |  |  |  |  |  |
Total | $ | 6,839 |  |  | $ | 5,777 |  |  | $ | 5,200 |  |  | $ | 3,504 |  |  | $ | — |  |  | $ | 7 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Accrued liabilities: |  |  |  |  |  |  |  |  |  |  |
Visa Europe put option |  |  |  |  |  |  |  |  | $ | — |  |  | $ | 255 |
Foreign exchange derivative instruments |  |  |  |  | $ | 116 |  |  | $ | 13 |  |  |  |  |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |
Foreign exchange derivative instruments |  |  |  |  | $ | 20 |  |  |  |  |  |  |
Total | $ | — |  |  | $ | — |  |  | $ | 136 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 255 |
There were no transfers between Level 1 and Level 2 assets during fiscal 2016. Level 1 assets measured at fair value on a recurring basis. Money market funds, publicly-traded equity securities and U.S. Treasury securities are classified as Level 1 within the fair value hierarchy, as fair value is based on quoted prices in active markets. Level 2 assets and liabilities measured at fair value on a recurring basis. The fair value of U.S. government-sponsored debt securities and corporate debt securities, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. Foreign exchange derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. There were no substantive changes to the valuation techniques and related inputs used to measure fair value during fiscal 2016. Level 3 assets and liabilities measured at fair value on a recurring basis. Auction rate securities are classified as Level 3 due to a lack of trading in active markets and a lack of observable inputs in measuring fair value. There were no substantive changes to the valuation techniques and related inputs used to measure fair value during fiscal 2016. Visa Europe put option agreement. On June 21, 2016, the Company acquired 100% of the share capital of Visa Europe, effected by the Visa Europe board of directors' exercise of the amended Visa Europe put option. Therefore, the Visa Europe put option was contractually terminated as a result of the transaction. During the first quarter of fiscal 2016, the Company recorded a $255 million non-cash decrease in the fair value of the put option as non-operating income in the Company's consolidated statements of operations, reducing the fair value of the liability to zero. See Note 2—Acquisition of Visa Europe. The liability was classified within Level 3 as the assumed probability that Visa Europe would elect to exercise its option in its unamended form, and the estimated P/E differential were among several unobservable inputs used to value the unamended put option. Assets Measured at Fair Value on a Non-recurring Basis Non-marketable equity investments and investments accounted for under the equity method. These investments are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity, and the fact that inputs used to measure fair value are unobservable and require management's judgment. When certain events or circumstances indicate that impairment may exist, the Company revalues the investments using various assumptions, including the financial metrics and ratios of comparable public companies. There were no significant impairment charges incurred during fiscal 2016, 2015 and 2014. At September 30, 2016 and 2015, these investments totaled $46 million and $45 million, respectively. These assets are classified in other assets on the consolidated balance sheets. Non-financial assets and liabilities. Long-lived assets such as goodwill, indefinite-lived intangible assets, finite-lived intangible assets, and property, equipment and technology are considered non-financial assets. The Company does not have any non-financial liabilities measured at fair value on a non-recurring basis. Finite-lived intangible assets primarily consist of customer relationships, trade names, and reseller relationships, all of which were obtained through acquisitions. See Note 7—Intangible Assets and Goodwill. If the Company were required to perform a quantitative assessment for impairment testing of goodwill and indefinite-lived intangible assets, the fair values would generally be estimated using an income approach. As the assumptions employed to measure these assets on a non-recurring basis are based on management's judgment using internal and external data, these fair value determinations are classified as Level 3 in the fair value hierarchy. The Company completed its annual impairment review of its indefinite-lived intangible assets and goodwill as of February 1, 2016, and concluded that there was no impairment. No recent events or changes in circumstances indicate that impairment existed at September 30, 2016. See Note 1—Summary of Significant Accounting Policies. Other Fair Value Disclosures Long-term debt. In December 2015, the Company issued fixed-rate senior notes in an aggregate principal amount of $16.0 billion, with maturities ranging between 2 and 30 years. See Note 9—Debt. These debt instruments are measured at amortized cost on the Company's consolidated balance sheet at September 30, 2016. The fair value of these notes, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. The following table presents the carrying amount and estimated fair value of the Company’s debt in order of maturity:
| September 30, 2016
| Carrying Amount |  | Estimated Fair Value
| (in millions)
1.20% Senior Notes due December 2017 | $ | 1,746 |  |  | $ | 1,754 |
2.20% Senior Notes due December 2020 | 2,988 |  |  | 3,077 |
2.80% Senior Notes due December 2022 | 2,238 |  |  | 2,359 |
3.15% Senior Notes due December 2025 | 3,964 |  |  | 4,225 |
4.15% Senior Notes due December 2035 | 1,485 |  |  | 1,698 |
4.30% Senior Notes due December 2045 | 3,461 |  |  | 4,045 |
| $ | 15,882 |  |  | $ | 17,158 |
Other Financial Instruments not Measured at Fair Value The following financial instruments are not measured at fair value on the Company's consolidated balance sheet at September 30, 2016, but require disclosure of their fair values: time deposits recorded in prepaid expenses and other current assets, settlement receivable and payable, and customer collateral. The estimated fair value of such instruments at September 30, 2016 approximates their carrying value due to their generally short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 in the fair value hierarchy. Investments Trading Investment Securities Trading investment securities include mutual fund equity security investments related to various employee compensation and benefit plans. Trading activity in these investments is at the direction of the Company's employees. These investments are held in trust and are not available for the Company's operational or liquidity needs. Interest and dividend income and changes in fair value are recorded in non-operating income, and offset in personnel expense on the consolidated statements of operations. As of September 30, 2016 and 2015, trading investment securities totaled $71 million and $66 million, respectively. Available-for-sale Investment Securities The amortized cost, unrealized gains and losses and fair value of available-for-sale investment securities are as follows:
| September 30, 2016 |  | September 30, 2015
| Amortized Cost |  | Gross Unrealized |  | Fair Value |  | Amortized Cost |  | Gross Unrealized |  | Fair Value
| Gains |  | Losses |  | Gains |  | Losses |
| (in millions)
U.S. government-sponsored debt securities | $ | 4,693 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 4,699 |  |  | $ | 2,612 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 2,615 |
U.S. Treasury securities | 2,176 |  |  | 3 |  |  | — |  |  | 2,179 |  |  | 2,652 |  |  | 4 |  |  | — |  |  | 2,656 |
Equity securities | 7 |  |  | 46 |  |  | — |  |  | 53 |  |  | 4 |  |  | — |  |  | — |  |  | 4 |
Corporate debt securities | 248 |  |  | — |  |  | — |  |  | 248 |  |  | 533 |  |  | — |  |  | — |  |  | 533 |
Auction rate securities | — |  |  | — |  |  | — |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | 7 |
Total | $ | 7,124 |  |  | $ | 55 |  |  | $ | — |  |  | $ | 7,179 |  |  | $ | 5,808 |  |  | $ | 7 |  |  | $ | — |  |  | $ | 5,815 |
Less: current portion of available-for-sale investment securities |  |  |  |  |  |  | (3,248 | ) |  |  |  |  |  |  |  | (2,431 | )
Long-term available-for-sale investment securities |  |  |  |  |  |  | $ | 3,931 |  |  |  |  |  |  |  |  | $ | 3,384 |
The available-for-sale investment securities primarily include U.S. Treasury securities, U.S. government-sponsored debt securities and corporate debt securities. Available-for-sale debt securities are presented below in accordance with their stated maturities. The majority of these investments, $3.9 billion, are classified as non-current, as they have stated maturities of more than one year from the balance sheet date. However, these investments are generally available to meet short-term liquidity needs.
| Amortized Cost |  | Fair Value
| (in millions)
September 30, 2016: |  |  |
Due within one year | $ | 3,193 |  |  | $ | 3,195 |
Due after 1 year through 5 years | 3,925 |  |  | 3,931 |
Due after 5 years through 10 years | — |  |  | — |
Due after 10 years | — |  |  | — |
Total | $ | 7,118 |  |  | $ | 7,126 |
Investment Income Investment income is recorded as non-operating income in the Company's consolidated statements of operations and consisted of the following:
| For the Years Ended September 30,
| 2016 |  | 2015 |  | 2014
| (in millions)
Interest and dividend income on cash and investments | $ | 75 |  |  | $ | 31 |  |  | $ | 25 |
Gain on other investments | 5 |  |  | 3 |  |  | 8 |
Investment securities, trading: |  |  |  |  |
Unrealized gains (losses), net | 3 |  |  | (6 | ) |  | (2 | )
Realized gains, net | — |  |  | 2 |  |  | 6 |
Investment securities, available-for-sale: |  |  |  |  |
Realized gains, net | 3 |  |  | 21 |  |  | 1 |
Other-than-temporary impairment on investments | (4 | ) |  | (5 | ) |  | (3 | )
Investment income | $ | 82 |  |  | $ | 46 |  |  | $ | 35 |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
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- Definition Disclosure - Fair Value Measurements and Investments [Abstract] + References No definition available. + Details
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