MasterCard 2007 Annual Report Download - page 12

Years Ended December 31 (in millions except per-share and operating data) 2007 2006 2005
Statement of Operations Data
Revenue $ 4,068 $ 3,326 $ 2,938
General and Administrative 1,758 1,505 1,352
Advertising and Marketing 1,080 1,052 1,008
Litigation Settlements 3 25 75
Charitable Contributions to The MasterCard Foundation 20 415 —
Depreciation and Amortization 98 100 110
Total Operating Expenses 2,959 3,097 2,545
Operating Income 1,108 229 393
Total Other Income (expense) 563 65 14
Income before Income Tax Expense 1,671 294 407
Net Income $ 1,086 $ 50 $ 267
Net Income per Share (basic)1 $ 8.05 $ 0.37 $ 1.98
Weighted Average Shares Outstanding (basic)1 135 135 135
Net Income per Share (diluted)1 $ 8.00 $ 0.37 $ 1.98
Weighted Average Shares Outstanding (diluted)1 136 136 135
Balance Sheet Data (at period end)
Cash and Cash Equivalents $ 1,659 $ 1,185 $ 545
Investment Securities — Current 1,311 1,299 737
Total Assets 6,260 5,082 3,701
Long-Term Debt 150 230 230
Obligations under U.S. Merchant Lawsuit and
Other Litigation Settlements (long-term) 297 360 416
Total Stockholders’ Equity 3,027 2,364 1,169
Operating Data
Gross Dollar Volume (in billions)2 $ 2,276 $ 1,922 $ 1,655
Processed Transactions (in millions)3 18,748 16,137 13,733
(1) In connection with our ownership and governance transactions in 2006, 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) In 2007, we updated gross dollar volume (GDV) to exclude commercial funds transfers in China, which are generally transactions that facilitate the transfer of funds
between bank branches but do not involve traditional cash withdrawals or balance transfers. Data for 2006 and 2005 have been restated to be consistent with this approach.
(3) The data set forth for processed transactions represents all transactions processed by MasterCard, including PIN-based online debit transactions. In 2006, we updated
our transaction detail to remove certain online debit transactions that did not result in a flow of funds, for example, balance inquiry or failed transactions. Management
determined that it would be more appropriate to exclude such transactions from the processed transactions calculation. The processed transactions in 2005 have been
restated to be consistent with the calculation of processed transactions in 2006. Revenue has not been impacted by this change.
*Note that figures in this table may not sum due to rounding.
Summary Consolidated Financial and Other Data*
All figures throughout report in U.S. dollars
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