MasterCard 2008 Annual Report Download - page 91

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MASTERCARD INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31,
2008 2007 2006
(In thousands)
Operating Activities
Net income (loss) ................................................. $ (253,915) $ 1,085,886 $ 50,190
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation and amortization ................................... 112,006 97,642 99,782
Gain on sale of Redecard S.A. available-for-sale securities ............ (85,903) (390,968) —
Charitable contribution of common stock to the MasterCard
Foundation ................................................ — — 394,785
Share based payments (Note 16) ................................. 60,970 58,213 19,181
Stock units settled in cash for taxes ............................... (67,111) (11,334) —
Tax benefit for share based compensation .......................... (47,803) (15,430) —
Impairment of investments ...................................... 12,515 8,719 —
Accretion of imputed interest on litigation settlements ................ 77,202 38,046 42,798
Deferred income taxes ......................................... (483,952) (5,492) 32,267
Other ....................................................... 14,645 15,121 9,746
Changes in operating assets and liabilities:
Trading securities ......................................... 2,561 9,700 10,211
Accounts receivable ....................................... (115,687) (60,984) (93,428)
Income taxes receivable .................................... (198,308) — —
Settlement due from customers .............................. 183,008 (356,305) (75,553)
Prepaid expenses .......................................... (65,222) (19,859) 42,623
Other current assets ....................................... (19,381) (7,538) 7,813
Prepaid expenses, non-current ............................... (35,631) (28,398) (30,555)
Litigation settlement accruals ................................ 1,254,660 (110,525) (170,883)
Accounts payable ......................................... 8,425 (30,650) 89,382
Settlement due to customers ................................. (52,852) 276,144 89,739
Accrued expenses ......................................... 36,817 176,716 86,859
Net change in other assets and liabilities ....................... 76,184 41,157 45,204
Net cash provided by operating activities .............................. 413,228 769,861 650,161
Investing Activities
Purchases of property, plant and equipment ........................ (75,626) (81,587) (61,204)
Capitalized software ........................................... (94,647) (74,835) (33,264)
Purchases of investment securities available-for-sale ................. (519,514) (3,578,357) (3,815,115)
Proceeds from sales and maturities of investment securities
available-for-sale ........................................... 976,743 4,042,011 3,233,725
Acquisition of business, net of cash acquired ....................... (81,731) — —
Other investing activities ....................................... (3,574) 7,909 (368)
Net cash provided by (used in) investing activities ................... 201,651 315,141 (676,226)
Financing Activities
Cash received from sale of common stock, net of issuance costs ........ — — 2,449,910
Cash payment for the redemption of common stock .................. — — (1,799,937)
Dividends paid ............................................... (79,259) (74,002) (12,373)
Cash proceeds from exercise of stock options ....................... 9,546 1,597 —
Tax benefit for share based compensation .......................... 47,803 15,430 —
Payment of debt .............................................. (80,000) — —
Purchase of treasury stock ...................................... (649,468) (600,532) —
Net cash provided by (used in) financing activities ....................... (751,378) (657,507) 637,600
Effect of exchange rate changes on cash and cash equivalents .............. (17,636) 46,720 28,272
Net increase (decrease) in cash and cash equivalents ..................... (154,135) 474,215 639,807
Cash and cash equivalents—beginning of period ........................ 1,659,295 1,185,080 545,273
Cash and cash equivalents—end of period .............................. $1,505,160 $ 1,659,295 $ 1,185,080
The accompanying notes are an integral part of these consolidated financial statements.
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