MasterCard 2009 Annual Report Download - page 87

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MASTERCARD INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31,
2009 2008 2007
(In thousands)
Operating Activities
Net income (loss) ............................................... $1,462,624 $ (253,915) $ 1,085,886
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation and amortization ................................. 141,377 112,006 97,642
Gain on sale of Redecard S.A. available-for-sale securities ........... — (85,903) (390,968)
Share based payments (Note 17) ................................ 88,430 60,970 58,213
Stock units withheld for taxes .................................. (28,458) (67,111) (11,334)
Tax benefit for share based compensation ........................ (39,025) (47,803) (15,430)
Impairment of assets ......................................... 16,430 12,515 8,719
Accretion of imputed interest on litigation settlements .............. 86,342 77,202 38,046
Deferred income taxes ....................................... 336,704 (483,952) (5,492)
Other ..................................................... (12,121) 14,645 15,121
Changes in operating assets and liabilities:
Trading securities ....................................... — 2,561 9,700
Accounts receivable ..................................... 122,445 (115,687) (60,984)
Income taxes receivable .................................. 190,000 (198,308) —
Settlement due from customers ............................. 54,473 183,008 (356,305)
Prepaid expenses ........................................ (112,655) (100,853) (48,257)
Obligations under litigation settlement ....................... (938,685) 1,254,660 (110,525)
Accounts payable ....................................... 34,231 8,425 (30,650)
Settlement due to customers ............................... (65,628) (52,852) 276,144
Accrued expenses ....................................... 82,076 51,345 183,699
Net change in other assets and liabilities ..................... (40,398) 42,275 26,636
Net cash provided by operating activities ............................. 1,378,162 413,228 769,861
Investing Activities
Purchases of property, plant and equipment ....................... (56,563) (75,626) (81,587)
Capitalized software ......................................... (82,797) (94,647) (74,835)
Purchases of investment securities available-for-sale ................ (332,571) (519,514) (3,578,357)
Purchases of investment securities held-to-maturity ................ (300,000) — —
Proceeds from sales and maturities of investment securities
available-for-sale .......................................... 134,177 976,743 4,042,011
Acquisition of business, net of cash acquired ...................... (2,913) (81,731) —
Investment in affiliates ....................................... (17,709) — —
Other investing activities ..................................... (5,804) (3,574) 7,909
Net cash provided by (used in) investing activities ..................... (664,180) 201,651 315,141
Financing Activities
Purchase of treasury stock .................................... — (649,468) (600,532)
Payment of debt ............................................ (149,380) (80,000) —
Dividends paid ............................................. (78,685) (79,259) (74,002)
Exercise of stock options ..................................... 8,720 9,546 1,597
Tax benefit for share based compensation ........................ 39,025 47,803 15,430
Redemption of non-controlling interest .......................... (4,620) — —
Net cash used in financing activities ................................. (184,940) (751,378) (657,507)
Effect of exchange rate changes on cash and cash equivalents ............ 21,237 (17,636) 46,720
Net increase (decrease) in cash and cash equivalents .................... 550,279 (154,135) 474,215
Cash and cash equivalents—beginning of period ....................... 1,505,160 1,659,295 1,185,080
Cash and cash equivalents—end of period ............................ $2,055,439 $1,505,160 $ 1,659,295
The accompanying notes are an integral part of these consolidated financial statements.
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