MasterCard 2006 Annual Report Download - page 4

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Years Ended December 31 (in millions except per-share and operating data) 2006 2005 2004
Statement of Operations Data
Revenue $ 3,326 $ 2,938 $ 2,593
General and Administrative 1,505 1,352 1,186
Advertising and Marketing 1,052 1,008 916
Litigation Settlements 25 75 22
Charitable Contributions to The MasterCard Foundation 415 — —
Depreciation and Amortization 100 110 122
Total Operating Expenses 3,097 2,545 2,246
Operating Income 229 393 347
Total Other Income (loss) 65 14 (23)
Income before Income Tax Expense 294 407 324
Net Income $ 50 $ 267 $ 238
Net Income per Share (basic)1 $ 0.37 $ 1.98 $ 1.76
Weighted Average Shares Outstanding (basic)1 135 135 135
Net Income per Share (diluted)1 $ 0.37 $ 1.98 $ 1.76
Weighted Average Shares Outstanding (diluted)1 136 135 135
Balance Sheet Data (at period end)
Cash and Cash Equivalents $ 1,185 $ 545 $ 329
Investment Securities — Current 1,299 737 809
Total Assets 5,082 3,701 3,265
Long-Term Debt 230 230 230
Obligations under U.S. Merchant Lawsuit and
Other Litigation Settlements — Current 360 416 469
Total Stockholders’ Equity 2,364 1,169 975
Operating Data
Gross Dollar Volume (in billions) $ 1,956 $ 1,690 $ 1,478
Processed Transactions (in millions)2 16,137 13,733 12,152
(1) As more fully described in Note 2 to the Consolidated Financial Statements included in Item 8 in MasterCard Incorporated’s 2006 Form 10-K, in connection
with the ownership and governance transactions, we reclassified all of our approximately 100 outstanding shares of existing Class A redeemable common stock
so that our previous stockholders received 1.35 shares of our Class B common stock for each share of Class A redeemable common stock that they held prior to
the reclassification and a single share of our Class M common stock. Accordingly, shares and per-share data were retroactively restated in the financial statements
subsequent to the reclassification to reflect the reclassification as if it were effective at the start of the first period being presented in the financial statements.
(2) The data set forth for processed transactions represents all transactions processed by MasterCard, including PIN-based online debit transactions. Prior to 2005,
processed transactions reported by MasterCard included certain MasterCard-branded (excluding Maestro and Cirrus) transactions for which we received transaction
details from our customers but which were not processed by our systems. In the first quarter of 2006, we updated our transaction detail to remove online balance
inquiry transactions, as well as online transactions that were declined for various reasons. Management determined that it would be more appropriate to exclude
such transactions from the processed transactions calculation. The processed transactions for the years ended December 31, 2005 and 2004, have been restated
to be consistent with the calculation of processed transactions in 2006. Revenue has not been impacted by this change.
Summary Consolidated Financial and Other Data
All figures throughout report in U.S. dollars