MasterCard 2012 Annual Report Download - page 67

activities for the year ended December 31, 2011 was primarily related to purchases of investment securities, the
acquisition of Access and expenditures for our global payments network, partially offset by net proceeds from sales and
maturities of investment securities.
Net cash used in financing activities for the years ended December 31, 2012 and 2011 primarily related to the
repurchase of the Company’s Class A common stock and dividend payments to our stockholders.
The Company believes that its existing cash, cash equivalents and investment securities balances, its cash flow
generating capabilities, its borrowing capacity and its access to capital resources are sufficient to satisfy its future
operating cash needs, capital asset purchases, outstanding commitments and other liquidity requirements associated with
its existing operations and potential obligations.
Credit Availability
On November 16, 2012, the Company entered into a committed five-year unsecured $3 billion revolving credit
facility (the “Credit Facility”), which expires on November 16, 2017. The Credit Facility replaced the Company’s prior
credit facility. Borrowings under the Credit Facility are available to provide liquidity for general corporate purposes,
including providing liquidity in the event of one or more settlement failures by the Company’s customers. In addition, for
business continuity planning and related purposes, we may borrow and repay amounts under the Credit Facility from time
to time. The facility fee and borrowing cost under the Credit Facility are contingent upon the Company’s credit rating. At
December 31, 2012, the applicable facility fee was 10 basis points on the average daily commitment (whether or not
utilized). In addition to the facility fee, interest on borrowings under the Credit Facility would be charged at the London
Interbank Offered Rate (LIBOR) plus an applicable margin of 90 basis points, or an alternative base rate. MasterCard had
no borrowings under the Credit Facility or prior credit facility at December 31, 2012 and 2011.
The Credit Facility contains customary representations, warranties, events of default and affirmative and negative
covenants, including a financial covenant limiting the maximum level of consolidated debt to earnings before interest,
taxes, depreciation and amortization. MasterCard was in compliance in all material respects with the covenants of the
Credit Facility and prior credit facility at December 31, 2012 and 2011. The majority of Credit Facility lenders are
customers or affiliates of customers of MasterCard.
On August 2, 2012, the Company filed a universal shelf registration statement to provide additional access to capital,
if needed. Pursuant to the shelf registration statement, the Company may from time to time offer to sell debt securities,
preferred stock, Class A common stock, depository shares, purchase contracts, units or warrants in one or more offerings.
Dividends and Share Repurchases
MasterCard has historically paid quarterly dividends on its outstanding Class A common stock and Class B common
stock. Subject to legally available funds, we intend to continue to pay a quarterly cash dividend. However, the declaration
and payment of future dividends is at the sole discretion of our Board of Directors after taking into account various
factors, including our financial condition, operating results, available cash and current and anticipated cash needs. The
following table summarizes the annual, per share dividends paid in the years reflected:
Years Ended December 31,
2012 2011 2010
(in millions, except per share data)
Cash dividend, per share ............................................ $1.05 $0.60 $0.60
Cash dividends paid ............................................... $132 $ 77 $ 79
On December 4, 2012, our Board of Directors declared a quarterly cash dividend of $0.30 per share paid on
February 8, 2013 to holders of record on January 9, 2013 of our Class A common stock and Class B common stock. The
aggregate amount of this dividend was $37 million.
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