MasterCard 2008 Annual Report Download - page 109
Download and view the complete annual report
Please find page 109 of the 2008 MasterCard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
 |
 |
MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
Additions to capitalized software primarily relate to internal projects associated with system enhancements
or infrastructure improvements. Amortizable customer relationships were added in 2008 due to the acquisition of
businesses. Certain intangible assets, including amortizable and unamortizable customer relationships and
trademarks and tradenames, are denominated in foreign currencies. As such, the change in intangible assets
includes a component attributable to foreign currency translation.
Amortization and impairment expense on the assets above amounted to the following for the years ended
December 31:
2008 2007 2006
Amortization .................................... $52,909 $48,331 $56,337
Capitalized software impairments ................... $ 1,011 $ 298 $ 614
No impairment charges for intangible assets other than capitalized software were recorded in 2008, 2007 or
2006.
The following table sets forth the estimated future amortization expense on amortizable intangible assets for
the years ending December 31:
2009 ............................................................ $ 59,421
2010 ............................................................ 49,445
2011 ............................................................ 29,381
2012 ............................................................ 15,778
2013 and thereafter ................................................. 33,967
$187,992
Note 10. Accrued Expenses
Accrued expenses consist of the following at December 31:
2008 2007
Customer and merchant incentives ....................... $ 526,722 $ 497,281
Personnel costs ...................................... 296,497 296,031
Advertising ......................................... 89,567 160,232
Income taxes ........................................ 20,685 10,028
Other .............................................. 98,590 107,985
Total accrued expenses ................................ $1,032,061 $1,071,557
Note 11. Pension, Savings Plan and Other Benefits
The Company maintains a non-contributory, qualified, defined benefit pension plan (the “Qualified Plan”)
with a cash balance feature covering substantially all of its U.S. employees hired before July 1, 2007. In March
2007, the Company announced it was modifying the Qualified Plan by maintaining employee pay credit
percentages at the 2007 level, eliminating funding for employees to purchase healthcare in retirement and
limiting plan participation to employees hired before July 1, 2007. These changes reduced the benefit obligation
of the Qualified Plan measured as of December 31, 2007 by approximately $16,794. The Qualified Plan
experienced a steep decline in the fair value of plan assets in 2008 which resulted in significant increases in the
99