MasterCard 2012 Annual Report Download - page 92
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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Balance Sheet Impact of Significant Acquisitions
The following table summarizes the purchase price allocations for the Access and DataCash acquisitions as
of April 15, 2011 and October 22, 2010, respectively:
Access DataCash
(in millions)
Current assets ...................................................... $ 50 $ 48
Property, plant and equipment ......................................... 2 3
Intangible assets .................................................... 164 129
Goodwill .......................................................... 354 402
Other assets ........................................................ — 7
Total assets acquired ............................................. 570 589
Current liabilities ................................................... (56) (24)
Non-current liabilities ................................................ (33) (31)
Total liabilities assumed .......................................... (89) (55)
Net assets acquired .............................................. $481 $534
Purchase consideration has been allocated to the tangible and identifiable intangible assets and to liabilities
assumed based on their respective fair values on the acquisition date. The excess of purchase consideration over
net assets acquired was recorded as goodwill. The amount of goodwill expected to be deductible for local tax
purposes is not significant.
Intangible assets consist of developed technologies, customer relationships, tradenames and non-compete
agreements, which have useful lives ranging from 1 to 10 years. See Note 9 (Other Intangible Assets). The
following table summarizes the fair value of the acquired intangible assets for the Access and DataCash
acquisitions as of April 15, 2011 and October 22, 2010, respectively:
Access DataCash
Intangible Asset
Fair Values at
Acquisition Date
Weighted-
Average Useful
Life
Intangible Asset
Fair Values at
Acquisition Date
Weighted-
Average Useful
Life
(in millions) (in years) (in millions) (in years)
Customer relationships ........ $132 8 $ 74 7
Developed technologies ........ 17 4 42 5
Tradenames ................. 15 6 11 5
Non-compete agreements ...... — 2 1
Total intangible assets ......... $164 $129
Pro forma information related to acquisitions was not included because the impact on the Company’s
consolidated results of operations was not considered to be material.
Note 3. Earnings Per Share
Basic earnings per share (“EPS”) for the year ended December 31, 2012 is calculated by dividing net
income attributable to MasterCard by the weighted-average number of common shares outstanding during the
year. Diluted EPS is calculated by dividing net income attributable to MasterCard by the weighted-average
number of common shares outstanding during the year, adjusted for the potentially dilutive effect of stock
options and unvested stock units using the treasury stock method.
88