MasterCard 2012 Annual Report Download - page 93

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
For the years ended December 31, 2011 and 2010, the dilutive effect of stock options is calculated including
the effects of certain equity instruments granted in share-based payment transactions under the two-class method.
Unvested share-based payment awards which receive non-forfeitable dividend rights, or dividend equivalents, are
considered participating securities and are required to be included in computing basic EPS under the two-class
method. The Company declared non-forfeitable dividends on unvested restricted stock units and contingently
issuable performance stock units (“Unvested Units”) which were granted prior to 2009.
The components of basic and diluted EPS for common shares for each of the years ended December 31 were
as follows:
2012 2011 2010
(in millions, except per share data)
Numerator:
Net income attributable to MasterCard .................... $2,759 $1,906 $1,846
Less: Net income allocated to Unvested Units .............. — — 3
Net income attributable to MasterCard allocated to common
shares ........................................... $2,759 $1,906 $1,843
Denominator:
Basic EPS weighted-average shares outstanding ............ 125 128 131
Dilutive stock options and stock units .................... 1 — —
Diluted EPS weighted-average shares outstanding * ......... 126 128 131
Earnings per Share
Basic .............................................. $22.02 $14.90 $14.10
Diluted ............................................ $21.94 $14.85 $14.05
* For the years presented, the calculation of diluted EPS excluded a minimal amount of anti-dilutive share-
based payment awards.
Note 4. Supplemental Cash Flows
The following table includes supplemental cash flow disclosures for each of the years ended December 31:
2012 2011 2010
(in millions)
Cash paid for income taxes, net of refunds .......................... $1,046 $908 $520
Cash paid for interest ........................................... — — 3
Cash paid for legal settlements1................................... 65 303 607
Non-cash investing and financing activities:
Dividends declared but not yet paid ............................ 37 19 20
Assets recorded pursuant to capital lease ........................ 11 14 —
Fair value of assets acquired, net of cash acquired2............... 73 549 553
Fair value of liabilities assumed related to acquisitions2............ 3 89 55
Fair value of non-controlling interest acquired ................... — — 2
1Amounts in 2012 primarily represent payments under settlement agreements related to the U.S. merchant
litigations. Amounts paid into escrow related to the U.S. merchant class litigation is not included in this
table. Amounts in 2011 and 2010 primarily represent payments under a settlement agreement relating to the
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