MasterCard 2013 Annual Report Download - page 94

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
90
Note 16. Commitments
At December 31, 2013, the Company had the following future minimum payments due under non-cancelable
agreements:
Total Capital
Leases Operating
Leases
Sponsorship,
Licensing &
Other
(in millions)
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 379 $ 8 $ 24 $ 347
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 1 25 137
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 — 23 61
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 — 18 23
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 — 11 11
Thereafter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 — 24 21
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 734 $ 9 $ 125 $ 600
Included in the table above are capital leases with a net present value of minimum lease payments of $9 million. In
addition, at December 31, 2013, $46 million of the future minimum payments in the table above for operating leases,
sponsorship, licensing and other agreements was accrued. Consolidated rental expense for the Company’s leased office
space was $38 million, $36 million and $30 million for the years ended December 31, 2013, 2012 and 2011, respectively.
Consolidated lease expense for automobiles, computer equipment and office equipment was $14 million, $11 million
and $9 million for the years ended December 31, 2013, 2012 and 2011, respectively.
Note 17. Income Taxes
The total income tax provision for the years ended December 31 is comprised of the following components:
2013 2012 2011
(in millions)
Current
Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,010 $ 524 $ 619
State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 24 30
Foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456 390 369
1,499 938 1,018
Deferred
Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (100) 248 (155)
State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 7 (6)
Foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11) (19) (15)
(115) 236 (176)
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,384 $ 1,174 $ 842
The domestic and foreign components of income before income taxes for the years ended December 31 are as follows:
2013 2012 2011
(in millions)
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,741 $ 2,508 $ 1,415
Foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,759 1,425 1,333
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,500 $ 3,933 $ 2,748
MasterCard has not provided for U.S. federal income and foreign withholding taxes on approximately $3.5 billion of
undistributed earnings from non-U.S. subsidiaries as of December 31, 2013 because such earnings are intended to be
reinvested indefinitely outside of the United States. If these earnings were distributed, foreign tax credits may become