MasterCard 2009 Annual Report Download - page 99

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
Note 3. Supplemental Cash Flows
The following table includes supplemental cash flow disclosures for each of the years ended December 31:
2009 2008 2007
Cash paid for income taxes1..................................... $457,285 $ 493,1991$ 561,860
Cash paid for interest .......................................... 10,569 14,058 17,094
Cash paid for legal settlements (Notes 19 and 21) .................... 945,530 1,263,185 113,925
Non-cash investing and financing activities:
Dividend declared but not yet paid ............................ 19,712 19,690 19,969
Municipal bonds cancelled .................................. 154,0002——
Revenue bonds received .................................... (154,000)3——
Building and land assets recorded pursuant to capital lease ......... (154,000)3——
Capital lease obligation ..................................... 154,0003——
Fair value of assets acquired, net of original investment, cash paid
and cash acquired ....................................... 16,970 124,275 —
Fair value of liabilities assumed related to investments in affiliates . . 14,792443,2345—
Fair value of non-controlling interest acquired ................... 8,015 — —
1$198,308 of these payments were recorded as an income tax receivable as of December 31, 2008.
2See Note 15 (Consolidation of Variable Interest Entity) for further details.
3See Note 8 (Property, Plant, and Equipment) for further details.
4Includes $8,750 to be extinguished in 2013 and 2016 for future benefits to be provided by MasterCard in the
establishment of a joint venture.
5Includes $20,432 due in 2011 relating to the MasterCard France acquisition.
Note 4. Fair Value
Financial Instruments—Recurring Measurements
In accordance with accounting requirements for financial instruments, the Company is disclosing the
estimated fair values as of December 31, 2009 and 2008 of the financial instruments that are within the scope of
the accounting guidance, as well as the method(s) and significant assumptions used to estimate the fair value of
those financial instruments. Furthermore, the Company classifies its fair value measurements in the Valuation
Hierarchy.
The distribution of the fair values of the Company’s financial instruments which are measured at fair value
on a recurring basis within the Valuation Hierarchy is as follows:
Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair Value at
December 31,
2009
Municipal bonds1................................ $ — $514,330 $ — $ 514,330
Taxable short-term bond funds ...................... 309,972 — — 309,972
Auction rate securities ............................ — — 179,987 179,987
Foreign currency forward contracts .................. — (1,274) — (1,274)
Other .......................................... 43 — — 43
Total .......................................... $310,015 $513,056 $179,987 $1,003,058
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