Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share (“EPS”) for the year ended December 31, 2012 is calculated by dividing net income attributable to MasterCard by the weighted-average number of common shares outstanding during the year. Diluted EPS is calculated by dividing net income attributable to MasterCard by the weighted-average number of common shares outstanding during the year, adjusted for the potentially dilutive effect of stock options and unvested stock units using the treasury stock method.

For the years ended December 31, 2011 and 2010, the dilutive effect of stock options is calculated including the effects of certain equity instruments granted in share-based payment transactions under the two-class method. Unvested share-based payment awards which receive non-forfeitable dividend rights, or dividend equivalents, are considered participating securities and are required to be included in computing basic EPS under the two-class method. The Company declared non-forfeitable dividends on unvested restricted stock units and contingently issuable performance stock units (“Unvested Units”) which were granted prior to 2009.

The components of basic and diluted EPS for common shares for each of the years ended December 31 were as follows:

	2012		2011		2010
	(in millions, except per share data)
Numerator:
Net income attributable to MasterCard	$	2,759	$	1,906	$	1,846
Less: Net income allocated to Unvested Units	—		—		3
Net income attributable to MasterCard allocated to common shares	$	2,759	$	1,906	$	1,843
Denominator:
Basic EPS weighted-average shares outstanding	125		128		131
Dilutive stock options and stock units	1		—		—
Diluted EPS weighted-average shares outstanding *	126		128		131
Earnings per Share
Basic	$	22.02	$	14.90	$	14.10
Diluted	$	21.94	$	14.85	$	14.05

* For the years presented, the calculation of diluted EPS excluded a minimal amount of anti-dilutive share-based payment awards.