Prepaid Expenses and Other Assets

12 Months Ended

Dec. 31, 2013

Prepaid Expenses and Other Assets [Abstract]

Prepaid expenses and other current assets consisted of the following at December 31:



	2013		2012
	(in millions)
Customer and merchant incentives	$	239	$	222
Investment securities held-to-maturity	—		36
Prepaid income taxes	36		77
Income taxes receivable	4		163
Other	192		183
Total prepaid expenses and other current assets	$	471	$	681

Other assets consisted of the following at December 31:



	2013		2012
	(in millions)
Customer and merchant incentives	$	531	$	404
Nonmarketable equity investments	229		249
Auction rate securities available-for-sale, at fair value	11		32
Income taxes receivable	78		72
Other	53		52
Total other assets	$	902	$	809

Certain customer and merchant business agreements provide incentives upon entering into the agreement. Customer and merchant incentives represent payments made or amounts to be paid to customers and merchants under business agreements. Amounts to be paid for these incentives and the related liability were included in accrued expenses and other liabilities. Once the payment is made, the liability is relieved. Costs directly related to entering into such an agreement are deferred and amortized over the life of the agreement.

Investments for which the equity method or historical cost method of accounting is used are recorded in other assets on the consolidated balance sheet. MasterCard’s share of net earnings or losses of entities accounted for under the equity method of accounting is included in other income (expense) on the consolidated statement of operations. The Company accounts for nonmarketable equity investments under the historical cost method of accounting when those investments do not qualify for the equity method of accounting.