MasterCard 2013 Annual Report Download - page 80

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
76
Amortization and impairment expense on the assets above amounted to $166 million, $149 million and $118 million
in 2013, 2012 and 2011, respectively. The following table sets forth the estimated future amortization expense on
amortizable intangible assets on the balance sheet at December 31, 2013 for the years ending December 31:
(in millions)
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 178
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
2018 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
$ 471
Note 10. Accrued Expenses and Accrued Litigation
Accrued expenses consisted of the following at December 31:
2013 2012
(in millions)
Customer and merchant incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,286 $ 1,058
Personnel costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 354
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 122
Income and other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 94
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 120
Total accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,101 $ 1,748
As of December 31, 2013 and 2012, the Company's provision related to U.S. merchant litigations was $886 million
and $726 million, respectively. These amounts are not included in the accrued expenses table above and are separately
reported as accrued litigation on the consolidated balance sheet. In the fourth quarter of 2013, MasterCard recorded
an incremental net pre-tax charge of $95 million related to the opt out merchants. The accrued litigation item also
includes $68 million related to the timing of MasterCard's administration of the short-term reduction in default credit
interchange from U.S. issuers. There is a corresponding equal amount presented in settlement due from customers.
See Note 18 (Legal and Regulatory Proceedings) for further discussion of the U.S. merchant class litigation.