MasterCard 2011 Annual Report Download - page 121

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In 2011 and 2010, 381 thousand and 550 thousand PSUs, respectively, were converted into shares of
Class A common stock. The total intrinsic value of PSUs converted into shares of Class A common stock during
the years ended December 31, 2011 and 2010, was $93 million and $123 million, respectively. There were no
PSUs converted into shares of Class A common stock during the year ended December 31, 2009.
As of December 31, 2011, there was $11 million of total unrecognized compensation cost related to
non-vested PSUs. The cost is expected to be recognized over a weighted average period of 1.6 years.
Additional Information
The following table includes additional share-based payment information for each of the years ended
December 31:
2011 2010 2009
(in millions)
Compensation expense: Stock Options, RSUs and PSUs ................. $ 79 $ 62 $ 87
Income tax benefit recognized for equity awards ....................... 28 22 30
Income tax benefit related to options exercised ........................797
Additional paid-in-capital balance attributed to equity awards ............ 151 156 197
On July 18, 2006, the Company’s stockholders approved the MasterCard Incorporated 2006 Non-Employee
Director Equity Compensation Plan, which was amended and restated as of October 13, 2008 (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 thousand shares of Class A common
stock reserved for DSU awards under the Director Plan. During the years ended December 31, 2011, 2010 and
2009, the Company granted 4 thousand, 5 thousand and 7 thousand 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, 2011, 2010 and 2009 was $274, $217 and $168, 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 million for the DSUs
for each of the years ended December 31, 2011, 2010 and 2009. During the years ended December 31, 2011 and
2010, there were approximately 7 thousand and 25 thousand DSUs converted into shares of Class A common
stock, respectively. The total intrinsic value of these DSUs converted into shares of Class A common stock was
$2 million and $5 million, respectively. There were no DSUs converted into shares of Class A Common stock
during the year ended December 31, 2009.
117