MasterCard 2009 Annual Report Download - page 141

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
adoption had no impact on the Company’s financial position or results of operations; it required additional
financial statement disclosures. The Company has applied these disclosure requirements on a prospective basis.
Accordingly, disclosures related to periods prior to the date of adoption have not been presented.
The Company does not designate foreign currency forward contracts as hedging instruments pursuant to the
accounting standards for derivative instruments and hedging activities. The Company records the change in the
estimated fair value of the outstanding forward contracts at the end of the reporting period to its consolidated
balance sheet and consolidated statement of operations.
As of December 31, 2009, all contracts to purchase and sell foreign currency had been entered into with
customers of MasterCard International. MasterCard’s forward contracts are classified by functional currency as
summarized below:
U.S. Dollar Functional Currency
December 31, 2009 December 31, 2008
Notional
Estimated
Fair Value1Notional
Estimated
Fair Value1
Commitments to purchase foreign currency .................. $37,998 $ (463)1$292,538 $21,9131
Commitments to sell foreign currency ...................... 50,296 (776)1154,187 12,2271
Balance Sheet Location:
Accounts Receivable ................................ $ 628 $34,227
Other Current Liabilities ............................. (1,867) (87)
Euro Functional Currency
December 31, 2009 December 31, 2008
Notional
Estimated
Fair Value1Notional
Estimated
Fair Value1
Commitments to purchase foreign currency ................... $16,122 $ (72)1$— $—
Commitments to sell foreign currency ....................... 45,038 $ 37166,405 (409)1
Balance Sheet Location:
Accounts Receivable ................................. 81 $ 290
Other Current Liabilities .............................. (116) (699)
Amount and Location of Gain (Loss)
Recognized in Income during the Year Ended
December 31, 2009
Derivatives Not Designated As Hedging Instruments
Foreign Currency Forward Contracts .......................... General and administrative $(11,944)
Revenues (6,087)
Total $(18,031)
1Amounts represent gross fair value amounts while these amounts may be netted for actual balance sheet
presentation.
131