MasterCard 2012 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2012 MasterCard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

MASTERCARD INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Years Ended December 31,
2012 2011 2010
(in millions)
Operating Activities
Net income ........................................................... $2,758 $ 1,904 $1,847
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ........................................ 230 194 148
Share based payments .............................................. 89 80 63
Stock units withheld for taxes ........................................ (42) (33) (126)
Tax benefit for share based compensation ............................... (47) (12) (85)
Deferred income taxes .............................................. 241 (175) 248
Other ............................................................ 53 19 41
Changes in operating assets and liabilities:
Accounts receivable ............................................ (121) (162) (115)
Income taxes receivable ......................................... (185) — (50)
Settlement due from customers ................................... (500) (114) (61)
Prepaid expenses .............................................. (81) 27 (48)
Obligations under litigation settlements ............................. — (303) (603)
Accrued litigation .............................................. (44) 770 —
Accounts payable .............................................. (2) 67 (19)
Settlement due to customers ...................................... 348 74 186
Accrued expenses .............................................. 221 296 265
Net change in other assets and liabilities ............................ 30 52 6
Net cash provided by operating activities ................................... 2,948 2,684 1,697
Investing Activities
Increase in restricted cash for litigation settlement ........................ (726) — —
Acquisition of businesses, net of cash acquired ........................... (70) (460) (498)
Purchases of property, plant and equipment ............................. (96) (77) (61)
Capitalized software ................................................ (122) (100) (90)
Purchases of investment securities available-for-sale ...................... (2,981) (899) (329)
Proceeds from sales of investment securities available-for-sale .............. 390 485 297
Proceeds from maturities of investment securities available-for-sale .......... 891 63 110
Proceeds from maturities of investment securities held-to-maturity ........... — 300 —
Investment in nonmarketable equity investments ......................... (118) (74) (67)
Other investing activities ............................................ (7) 14 (3)
Net cash used in investing activities ....................................... (2,839) (748) (641)
Financing Activities
Purchases of treasury stock .......................................... (1,748) (1,148) —
Dividends paid .................................................... (132) (77) (79)
Payment of debt ................................................... — (21) —
Tax benefit for share based compensation ............................... 47 12 85
Cash proceeds from exercise of stock options ............................ 31 19 11
Other financing activities ............................................ 4 — 2
Net cash (used in) provided by financing activities ............................ (1,798) (1,215) 19
Effect of exchange rate changes on cash and cash equivalents ................... 7 (54) (63)
Net (decrease) increase in cash and cash equivalents .......................... (1,682) 667 1,012
Cash and cash equivalents—beginning of period ............................. 3,734 3,067 2,055
Cash and cash equivalents—end of period .................................. $2,052 $ 3,734 $3,067
The accompanying notes are an integral part of these consolidated financial statements.
77