MasterCard 2015 Annual Report Download - page 72

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
66
Note 7. Property, Plant and Equipment
Property, plant and equipment consisted of the following at December 31:
2015 2014
(in millions)
Building, building equipment and land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 503 $ 510
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497 398
Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 53
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 91
Property, plant and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,166 1,052
Less: accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (491) (437)
Property, plant and equipment, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 675 $ 615
As of December 31, 2015 and 2014, capital leases of $20 million and $29 million, respectively, were included in equipment.
Accumulated amortization of these capital leases was $9 million and $17 million as of December 31, 2015 and 2014, respectively.
Depreciation and amortization expense for the above property, plant and equipment was $131 million, $107 million and $92
million for 2015, 2014 and 2013, respectively.
Note 8. Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 were as follows:
2015 2014
(in millions)
Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,522 $ 1,122
Goodwill acquired during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458 525
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (89) (106)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (19)
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,891 $ 1,522
The Company had no accumulated impairment losses for goodwill at December 31, 2015 or 2014. Based on annual impairment
testing, the Company’s goodwill is not impaired.
Note 9. Other Intangible Assets
The following table sets forth net intangible assets, other than goodwill, at December 31:
2015 2014
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
(in millions)
Amortized intangible assets:
Capitalized software . . . . . . . . $ 1,086 $ (625) $ 461 $ 839 $ (496) $ 343
Trademarks and tradenames. . 30 (23) 7 48 (38) 10
Customer relationships . . . . . . 318 (149) 169 292 (115) 177
Other. . . . . . . . . . . . . . . . . . . . . 25 (19) 6 20 (14) 6
Total. . . . . . . . . . . . . . . . . . . . . . . . 1,459 (816) 643 1,199 (663) 536
Unamortized intangible assets:
Customer relationships . . . . . . 160 — 160 178 — 178
Total. . . . . . . . . . . . . . . . . . . . . . . . $ 1,619 $ (816) $ 803 $ 1,377 $ (663) $ 714