MasterCard 2009 Annual Report Download - page 123

MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
equity awards was $30,333, $20,726 and $19,828 for the years ended December 31, 2009, 2008 and 2007,
respectively. The income tax benefit related to options exercised during 2009 was $7,545. The additional paid-in
capital balance attributed to the equity awards was $197,350, $135,538 and $114,637 as of December 31, 2009,
2008 and 2007, respectively.
On July 18, 2006, the Company’s stockholders approved the MasterCard Incorporated 2006 Non-Employee
Director Equity Compensation Plan (the “Director Plan”). The Director Plan provides for awards of Deferred
Stock Units (“DSUs”) to each director of the Company who is not a current employee of the Company. There are
100 shares of Class A common stock reserved for DSU awards under the Director Plan. During the years ended
December 31, 2009, 2008 and 2007, the Company granted 7 DSUs, 4 DSUs and 8 DSUs, respectively. The fair
value of the DSUs was based on the closing stock price on the New York Stock Exchange of the Company’s
Class A common stock on the date of grant. The weighted average grant-date fair value of DSUs granted during
the years ended December 31, 2009, 2008 and 2007 was $168.18, $284.92 and $139.27, respectively. The DSUs
vested immediately upon grant and will be settled in shares of the Company’s Class A common stock on the
fourth anniversary of the date of grant. Accordingly, the Company recorded general and administrative expense
of $1,151, $1,209 and $1,051 for the DSUs for the years ended December 31, 2009, 2008 and 2007, respectively.
The total income tax benefit recognized in the income statement for DSUs was $410, $371 and $413 for the years
ended December 31, 2009, 2008 and 2007, respectively.
Note 18. Commitments
At December 31, 2009, the Company had the following future minimum payments due under
non-cancelable agreements:
Total
Capital
Leases
Operating
Leases
Sponsorship,
Licensing &
Other
2010 .................................... $283,987 $ 7,260 $ 25,978 $250,749
2011 .................................... 146,147 4,455 17,710 123,982
2012 .................................... 108,377 3,221 15,358 89,798
2013 .................................... 59,947 36,838 10,281 12,828
2014 .................................... 13,998 — 8,371 5,627
Thereafter ................................ 25,579 — 22,859 2,720
Total .................................... $638,035 $51,774 $100,557 $485,704
Included in the table above are capital leases with imputed interest expense of $7,929 and a net present
value of minimum lease payments of $43,845. In addition, at December 31, 2009, $63,616 of the future
minimum payments in the table above for leases, sponsorship, licensing and other agreements was accrued.
Consolidated rental expense for the Company’s office space, which is recognized on a straight line basis over the
life of the lease, was approximately $39,586, $42,905 and $35,614 for the years ended December 31, 2009, 2008
and 2007, respectively. Consolidated lease expense for automobiles, computer equipment and office equipment
was $9,137, $7,694 and $7,679 for the years ended December 31, 2009, 2008 and 2007, respectively.
In January 2003, MasterCard purchased a building in Kansas City, Missouri for approximately $23,572. The
building is a co-processing data center which replaced a back-up data center in Lake Success, New York. During
2003, MasterCard entered into agreements with the City of Kansas City for (i) the sale-leaseback of the building
and related equipment which totaled $36,382 and (ii) the purchase of municipal bonds for the same amount
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