MasterCard 2012 Annual Report Download - page 101

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
During 2012, the Company acquired three businesses and recognized $48 million of related goodwill. On
April 15, 2011, MasterCard acquired Access. The Company recognized $354 million of related goodwill as part
of the acquisition of Access. See Note 2 (Acquisitions) for further details. The Company had no accumulated
impairment losses for goodwill at December 31, 2012 or 2011. Based on annual impairment testing, the
Company’s reporting unit is not at significant risk of goodwill impairment.
Note 9. Other Intangible Assets
The following table sets forth net intangible assets, other than goodwill, at December 31:
2012 2011
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
(in millions)
Amortized intangible assets:
Capitalized software ......... $ 786 $(506) $280 $ 765 $(502) $263
Trademarks and tradenames . . . 48 (31) 17 46 (26) 20
Customer relationships ....... 230 (54) 176 218 (26) 192
Other ..................... 11 (5) 6 4 (3) 1
Total ......................... 1,075 (596) 479 1,033 (557) 476
Unamortized intangible assets:
Customer relationships ....... 193 — 193 189 — 189
Total ......................... $1,268 $(596) $672 $1,222 $(557) $665
Additions to capitalized software in 2012 primarily related to internally developed software, purchased software
and acquisitions. Additions to capitalized software in 2011 primarily related to internally developed software and the
acquisition of Access in 2011. See Note 2 (Acquisitions) for further details. Certain intangible assets, including
amortizable and unamortizable customer relationships and trademarks and tradenames, are denominated in foreign
currencies. As such, the change in intangible assets includes a component attributable to foreign currency translation.
Amortization and impairment expense on the assets above amounted to $149 million, $118 million and
$80 million in 2012, 2011 and 2010, respectively. The following table sets forth the estimated future amortization
expense on amortizable intangible assets on the balance sheet at December 31, 2012 for the years ending December 31:
(in millions)
2013 .................................................................... $150
2014 .................................................................... 128
2015 .................................................................... 87
2016 .................................................................... 34
2017 and thereafter ........................................................ 80
$479
97