MasterCard 2009 Annual Report Download - page 98

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
required to be included in computing EPS under the two-class method. The Company declared non-forfeitable
dividends on unvested restricted stock units and contingently issuable performance stock units (“Unvested
Units”) which were granted prior to 2009. The Company has therefore calculated EPS under the two-class
method pursuant to this new accounting standard.
The components of basic and diluted EPS for common shares under the two-class method for each of the
years ended December 31:
2009 2008 2007
Numerator:
Net income (loss) attributable to MasterCard ........ $1,462,532 $(253,915) $1,085,886
Less: Net income (loss) allocated to Unvested
Units ..................................... 9,083 (1,304) 9,892
Net income (loss) attributable to MasterCard allocated
to common shares ........................... $1,453,449 $(252,611) $1,075,994
Denominator:
Basic EPS weighted average shares outstanding ..... 129,838 130,148 134,887
Dilutive stock options and restricted stock units ..... 394 — 266
Diluted EPS weighted-average shares outstanding . . . 130,232 130,148 135,153
Earnings (Loss) per Share:
Basic ....................................... $ 11.19 $ (1.94) $ 7.98
Diluted ...................................... $ 11.16 $ (1.94) $ 7.96
The calculation of diluted earnings per share for the year ended December 31, 2009 excluded approximately
251 stock options because the effect would be antidilutive. The calculation of diluted loss per share for the year
ended December 31, 2008 excluded approximately 705 stock options because the effect would be antidilutive.
The calculation of diluted earnings per share for the year ended December 31, 2007 excluded approximately 10
stock options because the effect would be antidilutive.
The following table compares EPS as originally reported and EPS under the two-class method, to quantify
the impact of the new standard on EPS for each of the years ended December 31:
2008 2007
Earnings (Loss) per Share:
Basic—as originally reported ....................................... $(1.95) $ 8.05
Basic—pursuant to the two-class method ............................. (1.94) 7.98
Impact of new accounting standard on basic EPS ....................... $0.01 $(0.07)
Diluted—as originally reported ..................................... $(1.95) $ 8.00
Diluted—pursuant to the two-class method ............................ (1.94) 7.96
Impact of new accounting standard on diluted EPS ...................... $0.01 $(0.04)
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