MasterCard 2014 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2014 MasterCard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
63
Note 9. Other Intangible Assets
The following table sets forth net intangible assets, other than goodwill, at December 31:
2014 2013
Gross
Carrying
Amount Accumulated
Amortization Net Carrying
Amount
Gross
Carrying
Amount Accumulated
Amortization Net Carrying
Amount
(in millions)
Amortized intangible assets:
Capitalized software . . . . . . . $ 839 $ (496) $ 343 $ 699 $ (404) $ 295
Trademarks and tradenames . 48 (38) 10 49 (38) 11
Customer relationships . . . . . 292 (115) 177 237 (84) 153
Other . . . . . . . . . . . . . . . . . . . 20 (14) 6 20 (8) 12
Total. . . . . . . . . . . . . . . . . . . . . . 1,199 (663) 536 1,005 (534) 471
Unamortized intangible assets:
Customer relationships . . . . . 178 — 178 201 — 201
Total. . . . . . . . . . . . . . . . . . . . . . $ 1,377 $ (663) $ 714 $ 1,206 $ (534) $ 672
The increase in the net carrying amount of amortized intangible assets in 2014 was primarily related to our acquired businesses.
The increase in the net carrying amount of amortized intangible assets in 2013 was primarily related to additions in internally
developed software and purchased software. 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.
Amortization and impairment expense on the assets above amounted to $214 million, $166 million and $149 million in 2014, 2013
and 2012, respectively. The following table sets forth the estimated future amortization expense on amortizable intangible assets
on the balance sheet at December 31, 2014 for the years ending December 31:
(in millions)
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 216
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2019 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
$ 536
Note 10. Accrued Expenses and Accrued Litigation
Accrued expenses consisted of the following at December 31:
2014 2013
(in millions)
Customer and merchant incentives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,433 $ 1,286
Personnel costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531 413
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 149
Income and other taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 95
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 158
Total accrued expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,439 $ 2,101