COSTOS DE PRODUCCION DEL CULTIVO DEL MAIZ

On October 27, 2008, MasterCard and Visa Inc. (“Visa”) entered into a settlement agreement (the “Discover Settlement”) with Discover Financial Services, Inc. (“Discover”) relating to the U.S. federal antitrust litigation amongst the parties. The Discover Settlement ended all litigation among the parties for a total of $2,750,000. In July 2008, MasterCard and Visa had entered into a judgment sharing agreement that allocated responsibility for any judgment or settlement of the Discover action among the parties. Accordingly, the MasterCard share of the Discover Settlement was $862,500, which was paid to Discover in November 2008. In addition, in connection with the Discover Settlement, Morgan Stanley, Discover’s former parent company, paid MasterCard $35,000 in November 2008, pursuant to a separate agreement. The net impact of $827,500 is included in litigation settlements for the year ended December 31, 2008.

On June 24, 2008, MasterCard entered into a settlement agreement (the “American Express Settlement”) with American Express Company (“American Express”) relating to the U.S. federal antitrust litigation between MasterCard and American Express. The American Express Settlement ended all existing litigation between MasterCard and American Express. Under the terms of the American Express Settlement, MasterCard is obligated to make 12 quarterly payments of up to $150,000 per quarter beginning in the third quarter of 2008. MasterCard’s maximum nominal payments will total $1,800,000. The amount of each quarterly payment is contingent on the performance of American Express’s U.S. Global Network Services business. The quarterly payments will be in an amount equal to 15% of American Express’s U.S. Global Network Services billings during the quarter, up to a maximum of $150,000 per quarter. If, however, the payment for any quarter is less than $150,000, the maximum payment for subsequent quarters will be increased by the difference between $150,000 and the lesser amount that was paid in any quarter in which there was a shortfall. MasterCard assumes American Express will achieve these financial hurdles. MasterCard recorded the present value of $1,800,000, at a 5.75% discount rate, or $1,649,345 for the year ended December 31, 2008. As of December 31, 2009, the Company has six quarterly payments for a total of $900,000 remaining.

In 2003, MasterCard entered into a settlement agreement (the “U.S. Merchant Lawsuit Settlement”) related to the U.S. merchant lawsuit described under the caption “U.S. Merchant and Consumer Litigations” in Note 21 (Legal and Regulatory Proceedings) and contract disputes with certain customers. Under the terms of the U.S. Merchant Lawsuit Settlement, the Company was required to pay $125,000 in 2003 and $100,000 annually each December from 2004 through 2012. On July 1, 2009, MasterCard entered into an agreement (the “Prepayment Agreement”) with plaintiffs of the U.S. Merchant Lawsuit Settlement whereby MasterCard agreed to make a prepayment of its remaining $400,000 in payment obligations at a discounted amount of $335,000 on September 30, 2009. The Company made the prepayment at the discounted amount of $335,000 on September 30, 2009, after the Prepayment Agreement became final. In addition, in 2003, several other lawsuits were initiated by merchants who opted not to participate in the plaintiff class in the U.S. merchant lawsuit. The “opt-out” merchant lawsuits were not covered by the terms of the U.S. Merchant Lawsuit Settlement and all have been individually settled.

MASTERCARD INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) (In thousands, except percent and per share data)

We recorded liabilities for these and certain litigation settlements in 2009 and prior years. Total liabilities for litigation settlements changed from December 31, 2007, as follows:

Balance as of December 31, 2007 . . . $ 404,436 Provision for Discover Settlement . . . 862,500 Provision for American Express Settlement . . . 1,649,345 Provision for other litigation settlements . . . 6,000 Interest accretion on U.S. Merchant Lawsuit Settlement . . . 32,879 Interest accretion on American Express Settlement . . . 44,300 Payments on American Express Settlement . . . (300,000) Payments on Discover Settlement . . . (862,500) Payment on U.S. Merchant Lawsuit Settlement . . . (100,000) Other payments and accretion . . . (662) Balance as of December 31, 2008 . . . 1,736,298 Interest accretion on U.S. Merchant Lawsuit Settlement . . . 20,506 Interest accretion on American Express Settlement . . . 65,812 Payments on American Express Settlement . . . (600,000) Payment on U.S. Merchant Lawsuit Settlement . . . (335,000) Gain on prepayment of U.S. Merchant Lawsuit Settlement . . . (14,234) Other payments, accruals and accretion, net . . . (3,661) Balance as of December 31, 2009 . . . $ 869,721

See Note 21 (Legal and Regulatory Proceedings) for additional discussion regarding the Company’s legal proceedings.

Note 20.Income Tax

The total income tax provision for the years ended December 31 is comprised of the following components:

2009 2008 2007

Current

Federal . . . $160,883 $ 118,387 $371,250 State and local . . . 17,818 13,124 36,661 Foreign . . . 240,022 223,143 183,127 418,723 354,654 591,038

Deferred

Federal . . . 307,614 (481,783) (8,666) State and local . . . 20,968 2,002 5,429 Foreign . . . 8,122 (4,171) (2,255)

336,704 (483,952) (5,492) Total income tax expense (benefit) . . . $755,427 $(129,298) $585,546

MASTERCARD INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) (In thousands, except percent and per share data)

The domestic and foreign components of earnings (loss) before income taxes for the years ended December 31 are as follows:

2009 2008 2007

United States . . . $1,481,934 $(986,175) $ 959,977 Foreign . . . 736,117 602,962 711,455 $2,218,051 $(383,213) $1,671,432 MasterCard has not provided for U.S. federal income and foreign withholding taxes on approximately $1,257,946 of undistributed earnings from non-U.S. subsidiaries as of December 31, 2009 because such earnings are intended to be reinvested indefinitely outside of the United States. If these earnings were distributed, foreign tax credits may become available under current law to reduce the resulting U.S. income tax liability, however, the amount of the tax and credits is not practically determinable.

The provision for income taxes differs from the amount of income tax determined by applying the appropriate statutory U.S. federal income tax rate to pretax income (loss) for the years ended December 31, as a result of the following:

2009 2008 2007

Amount Percent Amount Percent Amount Percent

Income (loss) before income tax expense . . . $2,218,051 $(383,213) $1,671,432

Federal statutory tax . . . 776,318 35.0% (134,125) 35.0% 585,001 35.0% State tax effect, net of federal benefit . . . 25,211 1.1 11,140 (2.9) 27,359 1.6 Foreign tax effect, net of federal benefit . . . (21,737) (1.0) 1,969 (0.5) (12,069) (0.7) Non-deductible expenses and other differences . . . . (17,866) (0.8) 2,260 (0.7) (2,918) (0.2) Tax exempt income . . . (6,499) (0.3) (10,542) 2.8 (11,827) (0.7) Income tax expense (benefit) . . . $ 755,427 34.1% $(129,298) 33.7% $ 585,546 35.0 %

Effective Income Tax Rate

The effective income tax rates for the years ended December 31, 2009, 2008 and 2007 were 34.1%, 33.7% and 35.0%, respectively. The primary cause of the changes in the effective rates was due to the litigation settlement charges recorded in 2008, which resulted in a pretax loss in a higher tax jurisdiction and pretax income in lower tax jurisdictions. In addition, deferred tax assets were remeasured and reduced by $15,045 and $20,605 in 2009 and 2008, respectively, due to changes in our state effective tax rate. As a result of the remeasurements, our income tax expense was increased for the same amounts.

MASTERCARD INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) (In thousands, except percent and per share data)

Deferred Taxes

Deferred tax assets and liabilities represent the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. The net deferred tax asset at December 31 was comprised of the following:

Assets (Liabilities)

2009 2008

Current Non-current Current Non-current

Accrued liabilities (including litigation settlements) . . . $240,219 $113,845 $268,376 $386,608 Deferred compensation and benefits . . . 19,769 50,500 5,670 72,163 Stock based compensation . . . — 59,169 — 50,621 Intangible assets . . . — (52,126) — (49,476) Property, plant and equipment . . . — (63,290) — (23,406) State taxes and other credits . . . 9,244 54,178 21,513 31,589 Other items . . . (25,671) 33,937 (11,764) 29,760 Valuation allowance . . . — (11,704) — (4,810)

$243,561 $184,509 $283,795 $493,049 The net increase in the valuation allowance during the year was $6,894. The 2009 valuation allowance relates to the Company’s ability to recognize tax benefits associated with certain foreign net operating losses. The recognition of these benefits is dependent upon the future taxable income in such foreign jurisdictions. The 2008 valuation allowance relates to the Company’s ability to recognize tax benefits associated with certain state net operating losses and other deferred tax assets, and are primarily attributable to a domestic subsidiary disposed of during the year.

On January 1, 2007, the Company adopted a new accounting pronouncement that addresses the accounting for uncertainties in income taxes. The adoption of this new accounting pronouncement required the Company to inventory, evaluate, and measure all uncertain tax positions taken or to be taken on tax returns, and to record liabilities for the amount of such positions that would not be sustained, or would only partially be sustained, upon examination by the relevant taxing authorities.

A reconciliation of beginning and ending tax benefits for the years ended December 31, is as follows:

2009 2008 2007

Beginning balance . . . $163,185 $134,826 $109,476 Additions:

Current year tax positions . . . 19,064 20,447 40,288 Prior year tax positions . . . 9,914 15,654 4,544 Reductions:

Prior year tax positions, due to changes in judgments . . . (18,248) (2,613) (4,886) Settlements with tax authorities . . . (16,460) (1,397) (11,990) Expired statute of limitations . . . (11,708) (3,732) (2,606) Ending balance . . . $145,747 $163,185 $134,826 The entire balance of $145,747 of unrecognized tax benefits, if recognized, would affect the effective tax rate. There are no positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will increase or decrease significantly within the next twelve months.

MASTERCARD INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) (In thousands, except percent and per share data)

The Company is subject to tax in the United States, Belgium and various state and other foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state, local and foreign examinations by tax authorities for years before 2001.

It is the Company’s policy to account for interest expense related to income tax matters as interest expense in its statement of operations, and to include penalties related to income tax matters in the income tax provision. At December 31, 2009 and 2008, the Company had recognized net interest payable of $18,866 and $14,014, respectively, in its consolidated balance sheets. For the years ended December 31, 2009, 2008 and 2007, the Company recorded net interest expense of $4,852, $8,118 and $800, respectively, in its consolidated statements of operations. At December 31, 2009 and 2008, the Company had recognized $155 and $2,609, respectively, of penalties payable in its consolidated balance sheets.