VISA INC.V
VISA INC. Fair Value Disclosure
Note 6—Fair Value Measurements and Investments
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Fair Value Measurements as of September 30 Using Inputs Considered as | |||||||||||||||||||||||
| Level 1 | Level 2 | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash equivalents and restricted cash equivalents: | |||||||||||||||||||||||
| Money market funds | $ | 13,760 | $ | 10,403 | $ | — | $ | — | |||||||||||||||
| U.S. Treasury securities | — | 7 | — | — | |||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||
| Marketable equity securities | 411 | 301 | — | — | |||||||||||||||||||
| U.S. government-sponsored debt securities | — | — | 305 | 496 | |||||||||||||||||||
| U.S. Treasury securities | 2,116 | 4,948 | — | — | |||||||||||||||||||
| Other current and non-current assets: | |||||||||||||||||||||||
| Money market funds | 28 | 25 | — | — | |||||||||||||||||||
| Derivative instruments | — | — | 62 | 103 | |||||||||||||||||||
| Total | $ | 16,315 | $ | 15,684 | $ | 367 | $ | 599 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Accrued compensation and benefits: | |||||||||||||||||||||||
| Deferred compensation liability | $ | 268 | $ | 238 | $ | — | $ | — | |||||||||||||||
| Accrued and other liabilities: | |||||||||||||||||||||||
| Derivative instruments | — | — | 319 | 226 | |||||||||||||||||||
| Total | $ | 268 | $ | 238 | $ | 319 | $ | 226 | |||||||||||||||
Level 1 assets and liabilities. Money market funds, U.S. Treasury securities and marketable equity securities are classified as Level 1 within the fair value hierarchy, as fair value is based on unadjusted quoted prices in active markets for identical assets. The Company’s deferred compensation liability is measured at fair value based on marketable equity securities held under the deferred compensation plan.
Level 2 assets and liabilities. The fair value of U.S. government-sponsored debt securities, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. Derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data.
U.S. Government-sponsored Debt Securities and U.S. Treasury Securities
The amortized cost, unrealized gains and losses and fair value of debt securities were as follows:
| September 30, 2025 | |||||||||||||||||||||||
| Amortized Cost | Gross Unrealized | Fair Value | |||||||||||||||||||||
| Gains | Losses | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| U.S. government-sponsored debt securities | $ | 304 | $ | 1 | $ | — | $ | 305 | |||||||||||||||
| U.S. Treasury securities | 2,101 | 15 | — | 2,116 | |||||||||||||||||||
| Total | $ | 2,405 | $ | 16 | $ | — | $ | 2,421 | |||||||||||||||
| September 30, 2024 | |||||||||||||||||||||||
| Amortized Cost | Gross Unrealized | Fair Value | |||||||||||||||||||||
| Gains | Losses | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| U.S. government-sponsored debt securities | $ | 492 | $ | 4 | $ | — | $ | 496 | |||||||||||||||
| U.S. Treasury securities | 4,920 | 40 | (5) | 4,955 | |||||||||||||||||||
| Total | $ | 5,412 | $ | 44 | $ | (5) | $ | 5,451 | |||||||||||||||
The stated maturities of debt securities were as follows:
| September 30, 2025 | ||||||||
| (in millions) | ||||||||
| Due within one year | $ | 1,564 | ||||||
Due after one year through five years | 857 | |||||||
| Total | $ | 2,421 | ||||||
Equity Securities
For fiscal 2025, 2024 and 2023, the Company recognized net unrealized gains of $17 million and $12 million and net unrealized losses of $102 million, respectively, on marketable and non-marketable equity securities held as of period end.
Fair value measurement alternative. The Company’s investments in privately held companies do not have readily determinable fair values. These investments are measured at fair value on a non-recurring basis and are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity and the fact that significant inputs used to measure fair value are unobservable and require management’s judgment.
The following table summarizes the Company’s non-marketable equity securities held as of period end that were accounted for using the fair value measurement alternative:
| September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
(in millions) | |||||||||||
| Initial cost basis | $ | 711 | $ | 711 | |||||||
| Adjustments: | |||||||||||
| Upward adjustments | 564 | 910 | |||||||||
| Downward adjustments, including impairment | (219) | (465) | |||||||||
| Carrying amount | $ | 1,056 | $ | 1,156 | |||||||
Unrealized gains and losses of the Company’s non-marketable equity securities held as of period end that were accounted for using the fair value measurement alternative were as follows:
| For the Years Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Upward adjustments | $ | 14 | $ | 10 | $ | 94 | |||||||||||
Downward adjustments, including impairment | $ | (51) | $ | (35) | $ | (99) | |||||||||||
Investment Income (Expense)
Investment income (expense) consisted of the following:
| For the Years Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Interest and dividend income on cash and investments | $ | 791 | $ | 992 | $ | 745 | |||||||||||
Gains (losses) on investments, net | (51) | (44) | (82) | ||||||||||||||
| Investment income (expense) | $ | 740 | $ | 948 | $ | 663 | |||||||||||
Other Fair Value Disclosures
Debt. Debt instruments are measured at amortized cost on the Company’s consolidated balance sheets. The fair value of the debt instruments, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, instruments. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. As of September 30, 2025, the carrying value and estimated fair value of debt was $25.2 billion and $23.3 billion, respectively. As of September 30, 2024, the carrying value and estimated fair value of debt was $20.8 billion and $19.2 billion, respectively.
Other financial instruments not measured at fair value. As of September 30, 2025, the carrying values of settlement receivable and payable, accounts receivable and payable, and customer collateral are an approximate fair value due to their generally short maturities. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 6, 2025 | Showing above |
| 2024 | Nov 13, 2024 | |
| 2023 | Nov 15, 2023 | |
| 2022 | Nov 16, 2022 | |
| 2021 | Nov 18, 2021 | |
| 2020 | Nov 19, 2020 | |
| 2019 | Nov 14, 2019 | |
| 2018 | Nov 16, 2018 | |
| 2017 | Nov 17, 2017 | |
| 2016 | Nov 15, 2016 | |
| 2015 | Nov 20, 2015 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.