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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2017
Income Tax Disclosure [Abstract] |
U.S. and non-U.S. income before income tax | The Company’s income before taxes by fiscal year consisted of the following:
| 2017 |  | 2016 |  | 2015
| (in millions)
U.S. | $ | 8,440 |  |  | $ | 5,839 |  |  | $ | 7,214 |
Non-U.S. | 3,254 |  |  | 2,173 |  |  | 1,781 |
Total income before taxes | $ | 11,694 |  |  | $ | 8,012 |  |  | $ | 8,995 |
Comprehensive Income Tax (Expense) Benefit Components Table | Income tax provision by fiscal year consisted of the following:
| 2017 |  | 2016 |  | 2015
| (in millions)
Current: |  |  |  |  |
U.S. federal | $ | 2,377 |  |  | $ | 2,250 |  |  | $ | 1,991 |
State and local | 291 |  |  | 181 |  |  | 168 |
Non-U.S. | 629 |  |  | 368 |  |  | 300 |
Total current taxes | 3,297 |  |  | 2,799 |  |  | 2,459 |
Deferred: |  |  |  |  |
U.S. federal | 1,607 |  |  | (508 | ) |  | 181 |
State and local | 66 |  |  | (63 | ) |  | 1 |
Non-U.S. | 25 |  |  | (207 | ) |  | 26 |
Total deferred taxes | 1,698 |  |  | (778 | ) |  | 208 |
Total income tax provision | $ | 4,995 |  |  | $ | 2,021 |  |  | $ | 2,667 |
Components of Deferred Tax Assets and Liabilities | The tax effect of temporary differences that give rise to significant portions of deferred tax assets and liabilities at September 30, 2017 and 2016, are presented below:
| 2017 |  | 2016
| (in millions)
Deferred Tax Assets: |  |  |
Accrued compensation and benefits | $ | 194 |  |  | $ | 277 |
Comprehensive loss | 29 |  |  | 106 |
Accrued litigation obligation | 373 |  |  | 373 |
Client incentives | 272 |  |  | 266 |
Net operating loss carryforwards | 45 |  |  | 32 |
Federal benefit of state taxes | 236 |  |  | 195 |
Federal benefit of foreign taxes | — |  |  | 1,214 |
Other | 193 |  |  | 280 |
Valuation allowance | (35 | ) |  | (31 | )
Deferred tax assets | 1,307 |  |  | 2,712 |
Deferred Tax Liabilities: |  |  |
Property, equipment and technology, net | (391 | ) |  | (278 | )
Intangible assets | (6,756 | ) |  | (7,013 | )
Foreign taxes | (59 | ) |  | (106 | )
Other | — |  |  | (101 | )
Deferred tax liabilities | (7,206 | ) |  | (7,498 | )
Net deferred tax liabilities | $ | (5,899 | ) |  | $ | (4,786 | )
Reconciliation of the US Statutory Federal Tax Rate | The income tax provision differs from the amount of income tax determined by applying the applicable U.S. federal statutory rate of 35% to pretax income, as a result of the following:
| For the Years Ended September 30,
| 2017 |  | 2016 |  | 2015
| Dollars |  | Percent |  | Dollars |  | Percent |  | Dollars |  | Percent
| (in millions, except percentages)
U.S. federal income tax at statutory rate | $ | 4,093 |  |  | 35 | % |  | $ | 2,804 |  |  | 35 | % |  | $ | 3,148 |  |  | 35 | %
State income taxes, net of federal benefit | 200 |  |  | 2 | % |  | 135 |  |  | 2 | % |  | 194 |  |  | 2 | %
Non-U.S. tax effect, net of federal benefit | (641 | ) |  | (5 | )% |  | (553 | ) |  | (7 | )% |  | (327 | ) |  | (4 | )%
Reorganization of Visa Europe and other legal entities | 1,515 |  |  | 13 | % |  | — |  |  | — | % |  | — |  |  | — | %
Remeasurement of deferred tax liability | — |  |  | — | % |  | (88 | ) |  | (1 | )% |  | — |  |  | — | %
Reversal of prior years tax reserves related to the resolution of uncertain tax positions | — |  |  | — | % |  | — |  |  | — | % |  | (239 | ) |  | (2 | )%
Revaluation of Visa Europe put option | — |  |  | — | % |  | (89 | ) |  | (1 | )% |  | — |  |  | — | %
Other, net | (172 | ) |  | (2 | )% |  | (188 | ) |  | (3 | )% |  | (109 | ) |  | (1 | )%
Income tax provision | $ | 4,995 |  |  | 43 | % |  | $ | 2,021 |  |  | 25 | % |  | $ | 2,667 |  |  | 30 | %
Unrecognized Tax Benefits Reconciliation, Table | A reconciliation of beginning and ending unrecognized tax benefits by fiscal year is as follows:
| 2017 |  | 2016
| (in millions)
Beginning balance at October 1 | $ | 1,160 |  |  | $ | 1,051 |
Increases of unrecognized tax benefits related to prior years | 56 |  |  | 153 |
Decreases of unrecognized tax benefits related to prior years | (59 | ) |  | (180 | )
Increases of unrecognized tax benefits related to current year | 197 |  |  | 138 |
Reductions related to lapsing statute of limitations | (1 | ) |  | (2 | )
Ending balance at September 30 | $ | 1,353 |  |  | $ | 1,160 |

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