MasterCard 2015 Annual Report Download - page 68

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
62
Note 3. Earnings Per Share
The components of basic and diluted EPS for common shares for each of the years ended December 31 were as follows:
2015 2014 2013
(in millions, except per share data)
Numerator:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,808 $ 3,617 $ 3,116
Denominator:
Basic weighted-average shares outstanding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,134 1,165 1,211
Dilutive stock options and stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 4
Diluted weighted-average shares outstanding 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,137 1,169 1,215
Earnings per Share
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.36 $ 3.11 $ 2.57
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.35 $ 3.10 $ 2.56
* Table may not sum due to rounding.
1 For the years presented, the calculation of diluted EPS excluded a minimal amount of anti-dilutive share-based payment awards.
Note 4. Supplemental Cash Flows
The following table includes supplemental cash flow disclosures for each of the years ended December 31:
2015 2014 2013
(in millions)
Cash paid for income taxes, net of refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,097 $ 2,036 $ 1,215
Cash paid for interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 24 2
Cash paid for legal settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 28 —
Non-cash investing and financing activities:
Dividends declared but not yet paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 184 131
Assets recorded pursuant to capital lease. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 8 7
Fair value of assets acquired, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626 768 —
Fair value of liabilities assumed related to acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . 42 141 —
Note 5. Fair Value and Investment Securities
The Company classifies its fair value measurements of financial instruments into a three-level hierarchy (the “Valuation
Hierarchy”). Except for the reclassification of U.S. government securities from Level 2 to Level 1, there were no transfers made
among the three levels in the Valuation Hierarchy for 2015 and 2014.