MasterCard 2013 Annual Report Download - page 77

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
73
Investment Maturities:
The maturity distribution based on the contractual terms of the Company’s investment securities at December 31, 2013
was as follows:
Available-For-Sale
Amortized
Cost Fair Value
(in millions)
Due within 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,562 $ 1,562
Due after 1 year through 5 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,121 1,122
Due after 5 years through 10 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 11
Due after 10 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 12
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,707 $ 2,707
Securities due after ten years are primarily ARS.
Investment Income:
Components of net investment income for each of the years ended December 31 were as follows:
2013 2012 2011
(in millions)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 33 $ 36 $ 44
Investment securities available-for-sale:
Gross realized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2 10
Gross realized losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2)(1)(2)
Total investment income, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38 $ 37 $ 52
Interest income primarily consists of interest income generated from cash, cash equivalents, investment securities
available-for-sale and investment securities held-to-maturity.
Note 6. Prepaid Expenses and Other Assets
Prepaid expenses and other current assets consisted of the following at December 31:
2013 2012
(in millions)
Customer and merchant incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 239 $ 222
Investment securities held-to-maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 36
Prepaid income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 77
Income taxes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 163
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 183
Total prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 471 $ 681