MasterCard 2014 Annual Report Download - page 42

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40
The following table summarizes the Company’s share repurchase authorizations of its Class A common stock through December 31,
2014, as well as historical purchases:
Authorization Dates
December
2014 December
2013 February
2013 Total
(in millions, except average price data)
Board authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,750 $ 3,500 $ 2,000 $ 9,250
Remaining authorization at December 31, 2013. . . . . . . . . $ — $ 3,500 $ 161 $ 3,661
Dollar-value of shares repurchased in 2014 . . . . . . . . . . . . $ — $ 3,225 $ 161 $ 3,386
Remaining authorization at December 31, 2014. . . . . . . . . $ 3,750 $ 275 $ — $ 4,025
Shares repurchased in 2014. . . . . . . . . . . . . . . . . . . . . . . . . — 42.6 1.9 44.5
Average price paid per share in 2014 . . . . . . . . . . . . . . . . . $ — $ 75.81 $ 83.22 $ 76.14
See Note 13 (Stockholders’ Equity) to the consolidated financial statements included in Part II, Item 8 of this Report for further
discussion.
Off-Balance Sheet Arrangements
MasterCard has no off-balance sheet debt, other than lease arrangements and other commitments as presented in the Future
Obligations table that follows.
Future Obligations
The following table summarizes our obligations as of December 31, 2014 that are expected to impact liquidity and cash flow in
future periods. We believe we will be able to fund these obligations through cash generated from operations and our cash balances.
Payments Due by Period
Total 2015 2016 - 2017 2018 - 2019 2020 and
thereafter
(in millions)
Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,541 $ 41 $ — $ 500 $ 1,000
Interest on debt. . . . . . . . . . . . . . . . . . . . . . . . . . 372 49 88 83 152
Capital leases . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 4 6 — —
Operating leases. . . . . . . . . . . . . . . . . . . . . . . . . 171 30 53 35 53
Other long-term obligations 1
Sponsorship, licensing and other 2. . . . . . . . . . . 540 326 172 36 6
Employee benefits 3. . . . . . . . . . . . . . . . . . . . . . 184 83 20 23 58
Total 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,818 $ 533 $ 339 $ 677 $ 1,269
1 The table does not include the $771 million provision as of December 31, 2014 related to the merchant opt outs and the U.S. merchant class litigation
since the opt outs are not fixed and determinable and the Company has made a payment into escrow to fund the U.S. merchant class litigation. See Note
18 (Legal and Regulatory Proceedings) to the consolidated financial statements included in Part II, Item 8 of this Report for further discussion.
2 Amounts primarily relate to sponsorships to promote the MasterCard brand. Future cash payments that will become due to our customers under agreements
which provide pricing rebates on our standard fees and other incentives in exchange for transaction volumes are not included in the table because the
amounts due are contingent on future performance. MasterCard has accrued $1.7 billion as of December 31, 2014 related to customer and merchant
agreements.
3 Amounts relate to committed severance, minimum funding requirements for defined benefit plans and unfunded postemployment benefits. U.S. employees
hired before July 1, 2007 participate in a non-contributory, qualified, defined benefit pension plan (the “Qualified Plan”) with a cash balance feature. In
2014, the Company began to evaluate whether to terminate the Qualified Plan. We continue to account for the Qualified Plan on an ongoing basis in our
financial statements. If we terminate the plan, we would be obligated to pay the underfunded status of the plan and take a settlement charge for the portion
of the liability that has not been recognized in our Statement of Operations.
4 The Company has recorded a liability for unrecognized tax benefits of $364 million at December 31, 2014 and estimates that approximately $1 million
of this liability is expected to be settled within the next 12 months. These amounts have been excluded from the table since the settlement period for the
non-current portion of this liability cannot be reasonably estimated. The timing of these payments will ultimately depend on the progress of tax examinations
with the various authorities.
Seasonality
The Company does not experience meaningful seasonality. No individual quarter in 2014, 2013 or 2012 accounted for more than
30% of net revenue.