MasterCard 2011 Annual Report Download - page 83

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MASTERCARD INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Years Ended December 31,
2011 2010 2009
(in millions)
Operating Activities
Net income ......................................................... $1,904 $1,847 $1,463
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ...................................... 194 148 141
Share based payments ............................................. 80 63 88
Stock units withheld for taxes ....................................... (33) (126) (28)
Tax benefit for share based compensation ............................. (12) (85) (39)
Accretion of imputed interest on litigation settlements ................... 5 35 86
Deferred income taxes ............................................ (175) 248 337
Other .......................................................... 14 6 5
Changes in operating assets and liabilities:
Accounts receivable .......................................... (162) (115) 122
Income taxes receivable ....................................... — (50) 190
Settlement due from customers .................................. (114) (61) 54
Prepaid expenses ............................................. 27 (48) (113)
Obligations under litigation settlements ........................... (303) (603) (939)
Accrued litigation ............................................ 770 — —
Accounts payable ............................................ 67 (19) 34
Settlement due to customers .................................... 74 186 (66)
Accrued expenses ............................................ 296 265 82
Net change in other assets and liabilities .......................... 52 6 (39)
Net cash provided by operating activities .................................. 2,684 1,697 1,378
Investing Activities
Acquisition of business, net of cash acquired ........................... (460) (498) (3)
Purchases of property, plant and equipment ............................ (77) (61) (57)
Capitalized software .............................................. (100) (90) (83)
Purchases of investment securities available-for-sale ..................... (899) (329) (333)
Purchases of investment securities held-to-maturity ..................... — — (300)
Proceeds from sales of investment securities available-for-sale ............. 485 297 98
Proceeds from maturities of investment securities available-for-sale ........ 63 110 36
Proceeds from maturities of investment securities held-to-maturity ......... 300 — —
Investment in nonmarketable equity investments ........................ (74) (67) (18)
Other investing activities .......................................... 14 (3) (4)
Net cash used in investing activities ...................................... (748) (641) (664)
Financing Activities
Purchases of treasury stock ......................................... (1,148) — —
Payment of debt ................................................. (21) — (149)
Dividends paid .................................................. (77) (79) (79)
Tax benefit for share based compensation ............................. 12 85 39
Investment in (redemption of) non-controlling interest ................... — 2 (5)
Cash proceeds from exercise of stock options .......................... 19 11 9
Net cash (used in) provided by financing activities .......................... (1,215) 19 (185)
Effect of exchange rate changes on cash and cash equivalents ................. (54) (63) 21
Net increase in cash and cash equivalents ................................. 667 1,012 550
Cash and cash equivalents—beginning of period ............................ 3,067 2,055 1,505
Cash and cash equivalents—end of period ................................. $3,734 $3,067 $2,055
The accompanying notes are an integral part of these consolidated financial statements.
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