MasterCard 2013 Annual Report Download - page 79

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
75
Depreciation and amortization expense for the above property, plant and equipment was $92 million, $84 million and
$77 million for the years ended December 31, 2013, 2012 and 2011, respectively.
Note 8. Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows:
2013 2012
(in millions)
Beginning balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,092 $ 1,014
Goodwill acquired during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 48
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 30
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,122 $ 1,092
During 2012, the Company acquired three businesses and recognized $48 million of related goodwill. The Company
had no accumulated impairment losses for goodwill at December 31, 2013 or 2012. Based on annual impairment
testing, the Company's reporting unit is not at significant risk of goodwill impairment.
Note 9. Other Intangible Assets
The following table sets forth net intangible assets, other than goodwill, at December 31:
2013 2012
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Amount
(in millions)
Amortized intangible assets:
Capitalized software. . . . . . . . . . . . $ 699 $ (404) $ 295 $ 786 $ (506) $ 280
Trademarks and tradenames. . . . . . 49 (38) 11 48 (31) 17
Customer relationships. . . . . . . . . . 237 (84) 153 230 (54) 176
Other. . . . . . . . . . . . . . . . . . . . . . . . 20 (8) 12 11 (5) 6
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,005 (534) 471 1,075 (596) 479
Unamortized intangible assets:
Customer relationships. . . . . . . . . . 201 — 201 193 — 193
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,206 $ (534) $ 672 $ 1,268 $ (596) $ 672
The increase in the net carrying amount of capitalized software in 2013 was primarily related to additions in internally
developed software and purchased software. The increase in the net carrying amount of capitalized software in 2012
was primarily related to additions in internally developed software, purchased software and acquisitions. Certain
intangible assets, including amortizable and unamortizable customer relationships and trademarks and tradenames, are
denominated in foreign currencies. As such, the change in intangible assets includes a component attributable to foreign
currency translation.