ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Consolidated Balance Sheet
December 31, 2022 2021 (in millions, except per share data) Assets Current assets: Cash and cash equivalents $ 7,008 $ 7,421 Restricted cash for litigation settlement 589 586 Investments 400 473 Accounts receivable 3,425 3,006 Settlement assets 1,270 1,319 Restricted security deposits held for customers 1,568 1,873 Prepaid expenses and other current assets 2,346 2,271 Total current assets 16,606 16,949 Property, equipment and right-of-use assets, net 2,006 1,907 Deferred income taxes 1,151 486 Goodwill 7,522 7,662 Other intangible assets, net 3,859 3,671 Other assets 7,580 6,994 Total Assets $ 38,724 $ 37,669 Liabilities, Redeemable Non-controlling Interests and Equity Current liabilities: Accounts payable $ 926 $ 738 Settlement obligations 1,111 913 Restricted security deposits held for customers 1,568 1,873 Accrued litigation 1,094 840 Accrued expenses 7,801 6,642 Short-term debt 274 792 Other current liabilities 1,397 1,364 Total current liabilities 14,171 13,162 Long-term debt 13,749 13,109 Deferred income taxes 393 395 Other liabilities 4,034 3,591 Total Liabilities 32,347 30,257 Commitments and Contingencies Redeemable Non-controlling Interests 21 29 Stockholders’ Equity Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,399 and 1,397 shares issued and 948 and 972 shares outstanding, respectively — — Class B common stock, $0.0001 par value; authorized 1,200 shares, 8 shares issued and outstanding — — Additional paid-in-capital 5,298 5,061 Class A treasury stock, at cost, 451 and 425 shares, respectively (51,354) (42,588) Retained earnings 53,607 45,648 Accumulated other comprehensive income (loss) (1,253) (809) Mastercard Incorporated Stockholders' Equity 6,298 7,312 Non-controlling interests 58 71 Total Equity 6,356 7,383 Total Liabilities, Redeemable Non-controlling Interests and Equity $ 38,724 $ 37,669
The accompanying notes are an integral part of these consolidated financial statements.
MASTERCARD 2022 FORM 10-K 69
PART II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Consolidated Statement of Cash Flows
For the Years Ended December 31, 2022 2021 2020 (in millions) Operating Activities Net income $ 9,930 $ 8,687 $ 6,411 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of customer and merchant incentives 1,586 1,371 1,072 Depreciation and amortization 750 726 580 (Gains) losses on equity investments, net 145 (645) (30) Share-based compensation 295 273 254 Deferred income taxes (651) (69) 73 Other 44 36 14 Changes in operating assets and liabilities: Accounts receivable (481) (397) (86) Income taxes receivable 12 (87) (2) Settlement assets 48 390 1,288 Prepaid expenses (2,175) (2,087) (1,552) Accrued litigation and legal settlements 240 (1) (73) Restricted security deposits held for customers (305) 177 326 Accounts payable 190 100 26 Settlement obligations 201 (568) (1,242) Accrued expenses 1,188 1,355 (114) Long-term taxes payable (121) (52) (37) Net change in other assets and liabilities 299 254 316 Net cash provided by operating activities 11,195 9,463 7,224 Investing Activities Purchases of investment securities available-for-sale (267) (389) (220) Purchases of investments held-to-maturity (239) (294) (198) Proceeds from sales of investment securities available-for-sale 54 83 361 Proceeds from maturities of investment securities available-for-sale 211 291 140 Proceeds from maturities of investments held-to-maturity 265 296 121 Purchases of property and equipment (442) (407) (339) Capitalized software (655) (407) (369) Purchases of equity investments (88) (228) (214) Proceeds from sales of equity investments 7 186 — Acquisition of businesses, net of cash acquired (313) (4,436) (989) Settlement of interest rate derivative contracts — — (175) Other investing activities (3) 33 3 Net cash used in investing activities (1,470) (5,272) (1,879) Financing Activities Purchases of treasury stock (8,753) (5,904) (4,473) Dividends paid (1,903) (1,741) (1,605) Proceeds from debt, net 1,123 2,024 3,959 Payment of debt (724) (650) — Acquisition of redeemable non-controlling interests (4) — (49) Acquisition of non-controlling interest — (133) — Contingent consideration paid — (64) — Tax withholdings related to share-based payments (141) (133) (150) Cash proceeds from exercise of stock options 90 61 97 Other financing activities (16) (15) 69 Net cash used in financing activities (10,328) (6,555) (2,152) Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents (103) (153) 257 Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents (706) (2,517) 3,450 Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period 9,902 12,419 8,969 Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period $ 9,196 $ 9,902 $ 12,419
The accompanying notes are an integral part of these consolidated financial statements.