MasterCard 2008 Annual Report Download - page 75

On January 22, 2009, Standard & Poor’s reaffirmed our BBB+ long-term and A-2 short-term counterparty
credit ratings, with a stable outlook. Our access to capital and liquidity has been sufficient with these ratings. A
securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or
withdrawal at any time.
On April 28, 2008, the Company extended its committed unsecured revolving credit facility, dated as of
April 28, 2006 (the “Credit Facility”), for an additional year. The new expiration date of the Credit Facility is
April 26, 2011. The available funding under the Credit Facility will remain at $2.5 billion through April 27, 2010
and then decrease to $2.0 billion during the final year of the Credit Facility agreement. Other terms and
conditions in the Credit Facility remain unchanged. The Company’s option to request that each lender under the
Credit Facility extend its commitment was provided pursuant to the original terms of the Credit Facility
agreement. MasterCard was in compliance with the covenants of the Credit Facility and had no borrowings under
the Credit Facility at December 31, 2008 and December 31, 2007, respectively. The majority of Credit Facility
lenders are customers or affiliates of customers of MasterCard International.
On January 5, 2009, HSBC Bank plc (“HSBC”) notified the Company that, effective December 31, 2008, it
had terminated an uncommitted credit agreement totaling 100 million euros between HSBC and MasterCard
Europe sprl. There were no outstanding borrowings under this facility at December 31, 2008.
In June 2007, the Company’s stockholders approved amendments to the Company’s certificate of
incorporation designed to facilitate an accelerated, orderly conversion of Class B common stock into Class A
common stock for subsequent sale. In February 2008, the Company’s Board of Directors authorized the
conversion and sale or transfer of up to 13.1 million shares of Class B common stock into Class A common
stock. In May 2008, the Company implemented and completed a conversion program in which all of the
13.1 million authorized shares of Class B common stock were converted into an equal number of Class A
common stock and subsequently sold or transferred by participating holders of Class B common stock to public
investors. In February 2009, the Company’s Board of Directors authorized the conversion and sale or transfer of
up to 11.0 million shares of Class B common stock into Class A common stock in one or more conversion
programs during 2009. See Note 14 (Stockholders’ Equity) to the consolidated financial statements included in
Item 8 of this Report for additional information.
Future Obligations
The following table summarizes our obligations as of December 31, 2008 that are expected to impact
liquidity and cash flow in future periods. We believe we will be able to fund these obligations through cash
generated from operations and our existing cash balances.
Payments Due by Period
Total 2009 2010-2011 2012-2013
2014 and
thereafter
(In millions)
Capital leases1..................................... $ 52 $ 8 $ 5 $ 39 $—
Operating leases2................................... 106 40 30 16 19
Sponsorship, licensing and other3,4 ..................... 570 337 187 45 2
Litigation settlements5............................... 1,912 712 1,100 100 —
Debt6............................................ 184 165 19 — —
Total ............................................. $2,824 $1,262 $1,341 $200 $ 21
*Note that totals in above table may not sum due to rounding.
1Most capital leases relate to certain property, plant and equipment used in our business. Our largest capital
lease relates to our Kansas City, Missouri co-processing facility.
2We enter into operating leases in the normal course of business, including the lease on our facility in St.
Louis, Missouri. Substantially all lease agreements have fixed payment terms based on the passage of time.
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