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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
68
and administrative expenses. The consolidated financial statements include the operating results of Access from the
date of the acquisition. 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
The components of basic and diluted EPS for common shares for each of the years ended December 31 were as follows:
2013 2012 2011
(in millions, except per share data)
Numerator:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,116 $ 2,759 $ 1,906
Less: Net income allocated to Unvested Units . . . . . . . . . . . . . . . . . . . . . — — —
Net income allocated to common shares. . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,116 $ 2,759 $ 1,906
Denominator1:
Basic EPS weighted-average shares outstanding . . . . . . . . . . . . . . . . . . . 1,211 1,253 1,279
Dilutive stock options and stock units. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4
Diluted EPS weighted-average shares outstanding2. . . . . . . . . . . . . . . . . 1,215 1,258 1,284
Earnings per Share
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.57 $ 2.20 $ 1.49
Diluted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.56 $ 2.19 $ 1.48
* Table may not sum due to rounding.
1 The number of shares and per share amounts have been retroactively restated to reflect the ten-for-one stock split of the Company's
Class A and Class B common shares, which was effected in the form of a common stock dividend distributed on January 21, 2014.
2 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:
2013 2012 2011
(in millions)
Cash paid for income taxes, net of refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,215 $ 1,046 $ 908
Cash paid for interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 — —
Cash paid for legal settlements1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 65 303
Non-cash investing and financing activities:
Dividends declared but not yet paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 37 19
Assets recorded pursuant to capital lease . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 11 14
Fair value of assets acquired, net of cash acquired . . . . . . . . . . . . . . . . . . . . — 73 549
Fair value of liabilities assumed related to acquisitions . . . . . . . . . . . . . . . . — 3 89
1 Amounts 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 primarily represent payments under a
settlement agreement relating to the U.S. federal antitrust litigation between MasterCard and American Express Company. Under the
terms of the American Express Settlement, MasterCard made 12 quarterly payments of $150 million beginning in the third quarter of
2008. The Company made its final quarterly payment of $150 million in June 2011.