Mastercard Inc - FORM 8-K - EX-99.1 - PRESS RELEASE

Attached files

file	filename
8-K - FORM 8-K - Mastercard Inc	d385081d8k.htm
EX-99.2 - PRESENTATION - Mastercard Inc	d385081dex992.htm

Exhibit 99.1

LOGO

MasterCard Incorporated Reports

Second-Quarter 2012 Financial Results

•

Net income of $713 million, or $5.65 per diluted share, excluding a special item

•

Net income of $700 million, or $5.55 per diluted share, including a special item

•

Net revenue increase of 9%, to $1.8 billion

•

Gross dollar volume up 15% and purchase volume up 13%

Purchase, NY, August 1, 2012 – MasterCard Incorporated (NYSE: MA) today announced financial results for the second quarter of 2012. Excluding a special item, the company reported net income of $713 million, up 17%, and earnings per diluted share of $5.65, up 19%, in each case versus the year-ago period. Including the special item, an incremental $13 million after-tax charge related to the U.S. merchant litigations, the company reported net income of $700 million, or $5.55 per diluted share. The company’s total operating expenses, operating income, net income and earnings per share, excluding the special item, are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.

Net revenue for the second quarter of 2012 was $1.8 billion, a 9% increase versus the same period in 2011. On a constant currency basis, net revenue increased 13% compared to the same period in 2011. Net revenue growth was driven by the impact of the following:

•

A 15% increase in gross dollar volume on a local currency basis, to $890 billion;

•

An increase in processed transactions of 29%, to 8.5 billion; and

•

An increase in cross-border volumes of 17%.

These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes.

Worldwide purchase volume during the quarter was up 13% on a local currency basis versus the second quarter of 2011, to $661 billion. As of June 30, 2012, the company’s customers had issued 1.8 billion MasterCard and Maestro-branded cards.

“Though economic uncertainties continued to persist, we experienced solid volume and processed transaction growth in all regions as we are focused on driving our global business to expand the reach of electronic payments,” said Ajay Banga, MasterCard president and CEO. “We are executing on strategic partnerships as demonstrated by our recent announcement with Deutsche Telekom and the completion of AliPay’s integration with the DataCash payment platform, which will expand AliPay’s reach to online retailers outside of China. We also continue to work with government entities around the world, like the South African Social Security Agency, to help them implement more efficient and secure ways to deliver social benefits and to increase transparency and financial inclusion.”

-more-

MasterCard Incorporated – Page 2

Based on the company’s decision to enter into settlement agreements in the U.S. merchant litigations, the company recorded a $20 million pre-tax charge, or $13 million on an after-tax basis, in the second quarter of 2012. This special item is incremental to the charge taken in the fourth quarter of 2011 to reflect the company’s total financial portion of $790 million in the settlement of these cases.

Excluding the special item, total operating expenses increased 6%, to $826 million in the second quarter of 2012. On a constant currency basis, operating expenses increased 9%. The increase in total operating expenses was primarily driven by higher personnel costs related to strategic initiatives. Including the special item, total operating expenses for the second quarter of 2012 increased 8% versus the year-ago period, to $846 million.

Excluding the special item, operating income for the second quarter of 2012 increased 12% over the year-ago period and the company delivered an operating margin of 54.6%.

MasterCard reported other expense of $1 million in the second quarter of 2012 versus other income of $7 million in the second quarter of 2011. The change was primarily driven by increased expenses from investments in joint ventures.

Including the special item, the effective tax rate was 28.0% in the second quarter of 2012, versus a rate of 31.8% in the comparable period in 2011. The decrease was primarily due to discrete benefits relating to additional export incentives and the conclusion of tax examinations in certain jurisdictions. A more favorable geographic mix of earnings also contributed to the decrease.

During the second quarter of 2012, MasterCard repurchased approximately 1.6 million shares of Class A common stock at a cost of $671 million. Quarter-to-date through July 26, the company repurchased an additional 132,250 shares at a cost of approximately $57 million, with $1.4 billion remaining under the most recent $1.5 billion repurchase program authorization.

Year-to-Date 2012 Results

For the six months ended June 30, 2012, MasterCard reported net income of $1.4 billion, or $11.01 per diluted share, excluding the special item from the second quarter of 2012. Including the special item, diluted earnings per share was $10.91.

Net revenue for the six months ended June 30, 2012 was $3.6 billion, an increase of 13% versus the same period in 2011, or 16% on a constant currency basis. Gross dollar volume growth of 17%, transaction processing growth of 29% and cross-border volume growth of 18% contributed to the net revenue growth in the year-to-date period. These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed customer agreements and increased volumes.

MasterCard Incorporated – Page 3

Excluding the special item, total operating expenses increased 9%, to $1.6 billion, for the six months ended June 30, 2012, primarily due to higher personnel costs related to strategic initiatives. Excluding currency fluctuations, total operating expenses increased 12%. Including the special item, total operating expenses increased 11%.

Excluding the special item, operating income increased 16% for the first half of 2012 versus the first half of 2011, delivering an operating margin of 55.7%.

MasterCard reported total other expense of $2 million for the six months ended June 30, 2012, versus other income of $7 million in the same period last year. This change was primarily driven by increased expenses from investments in joint ventures.

MasterCard’s effective tax rate was 30.0% in the six months ended June 30, 2012, including and excluding the special item, versus a rate of 32.3% in the comparable period in 2011. The decrease was primarily due to discrete benefits relating to additional export incentives and the conclusion of tax examinations in certain jurisdictions. A more favorable geographic mix of earnings also contributed to the decrease.

Second-Quarter Financial Results Conference Call Details

At 9:00 a.m. ET today, the company will host a conference call to discuss its second-quarter results.

The dial-in information for this call is 866-383-8008 (within the U.S.) and 617-597-5341 (outside the U.S.) and the passcode is 96010404. A replay of the call will be available for one week following the meeting. The replay can be accessed by dialing 888-286-8010 (within the U.S.) and 617-801-6888 (outside the U.S.) and using passcode 11595402.

The live call and the replay, along with supporting materials, can also be accessed through the Investor Relations section of the company’s website at mastercard.com.

About MasterCard Incorporated

MasterCard (NYSE: MA), www.mastercard.com, is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.

MasterCard Incorporated – Page 4

Forward-Looking Statements

Statements in this press release which are not historical facts, including statements about MasterCard’s plans, strategies, beliefs and expectations, are forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date they are made. Accordingly, except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events. Such forward-looking statements include, without limitation, statements related to the Company’s ability to execute on strategic partnerships and partner with governments around the world to expand the reach of electronic payments.

Actual results may differ materially from such forward-looking statements for a number of reasons, including those set forth in the company’s filings with the Securities and Exchange Commission (SEC), including the company’s Annual Report on Form 10-K for the year ended December 31, 2011, the company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that have been filed with the SEC during 2012, as well as reasons including difficulties, delays or the inability of the company to achieve its strategic initiatives set forth above. Factors other than those listed above could also cause the company’s results to differ materially from expected results.

###

Contacts:

Investor Relations: Barbara Gasper, investor_relations@mastercard.com, 914-249-4565

Media Relations: Jim Issokson, james_issokson@mastercard.com, 914-249-6286

MasterCard Incorporated – Page 5

MASTERCARD INCORPORATED

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(in millions, except per share data)
Revenues, net	$	1,820		$	1,667		$	3,578		$	3,168
Operating Expenses
General and administrative		591			540			1,170			1,034
Advertising and marketing		179			193			304			322
Depreciation and amortization		56			49			110			91
Provision for litigation settlement		20			—			20			—

Total operating expenses		846			782			1,604			1,447

Operating income		974			885			1,974			1,721
Other Income (Expense)
Investment income		9			11			18			23
Interest expense		(3	)		(2	)		(9	)		(12	)
Other income (expense), net		(7	)		(2	)		(11	)		(4	)

Total other income (expense)		(1	)		7			(2	)		7

Income before income taxes		973			892			1,972			1,728
Income tax expense		273			284			591			558

Net income		700			608			1,381			1,170
Loss attributable to non-controlling interests		—			—			1			—

Net Income Attributable to MasterCard	$	700		$	608		$	1,382		$	1,170


Basic Earnings per Share	$	5.56		$	4.77		$	10.95		$	9.08

Basic Weighted Average Shares Outstanding		126			127			126			129

Diluted Earnings per Share	$	5.55		$	4.76		$	10.91		$	9.05

Diluted Weighted Average Shares Outstanding		126			128			127			129

MasterCard Incorporated – Page 6

MASTERCARD INCORPORATED

CONSOLIDATED BALANCE SHEET

(UNAUDITED)


	June 30, 2012			December 31, 2011
	(in millions, except share data)
ASSETS
Cash and cash equivalents	$	3,153		$	3,734
Investment securities available-for-sale		1,803			1,215
Accounts receivable		844			808
Settlement due from customers		807			601
Restricted security deposits held for customers		726			636
Prepaid expenses and other current assets		592			404
Deferred income taxes		358			343

Total Current Assets		8,283			7,741
Property, plant and equipment, net		458			449
Deferred income taxes		116			88
Goodwill		1,009			1,014
Other intangible assets, net of accumulated amortization		656			665
Other assets		718			736

Total Assets	$	11,240		$	10,693

LIABILITIES AND EQUITY
Accounts payable	$	330		$	360
Settlement due to customers		803			699
Restricted security deposits held for customers		726			636
Accrued litigation		790			770
Accrued expenses		1,475			1,610
Other current liabilities		183			142

Total Current Liabilities		4,307			4,217
Deferred income taxes		105			113
Other liabilities		552			486

Total Liabilities		4,964			4,816
Commitments and Contingencies
Stockholders’ Equity
Class A common stock, $0.0001 par value; authorized 3,000,000,000 shares, 133,196,600 and 132,771,392 shares issued and 119,783,424 and 121,618,059 outstanding, respectively		—			—
Class B common stock, $0.0001 par value; authorized 1,200,000,000 shares, 5,114,123 and 5,245,676 issued and outstanding, respectively		—			—
Additional paid-in-capital		3,571			3,519
Class A treasury stock, at cost, 13,413,176 and 11,153,333 shares, respectively		(3,311	)		(2,394	)
Retained earnings		6,052			4,745
Accumulated other comprehensive loss		(47	)		(2	)

Total Stockholders’ Equity		6,265			5,868
Non-controlling interests		11			9

Total Equity		6,276			5,877

Total Liabilities and Equity	$	11,240		$	10,693

MasterCard Incorporated – Page 7

MASTERCARD INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)


	Six Months Ended June 30,
	2012			2011
	(in millions)
Operating Activities
Net income	$	1,381		$	1,170
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		110			91
Share-based payments		41			36
Stock units withheld for taxes		(38	)		(32	)
Tax benefit for share-based compensation		(33	)		(10	)
Deferred income taxes		(55	)		94
Other		24			13
Changes in operating assets and liabilities:
Accounts receivable		(51	)		(22	)
Income taxes receivable		(31	)		—
Settlement due from customers		(213	)		42
Prepaid expenses		(140	)		(73	)
Obligations under litigation settlements		20			(300	)
Accounts payable		(27	)		34
Settlement due to customers		112			(127	)
Accrued expenses		(50	)		(84	)
Net change in other assets and liabilities		18			61

Net cash provided by operating activities		1,068			893

Investing Activities
Acquisition of business, net of cash acquired		—			(460	)
Purchases of investment securities available-for-sale		(1,054	)		(39	)
Purchases of property, plant and equipment		(40	)		(35	)
Capitalized software		(67	)		(37	)
Proceeds from sales of investment securities available-for-sale		104			30
Proceeds from maturities of investment securities available-for-sale		386			28
Proceeds from maturities of investment securities held-to-maturity		—			301
Investment in nonmarketable equity investments		(19	)		(2	)

Net cash used in investing activities		(690	)		(214	)

Financing Activities
Purchases of treasury stock		(919	)		(1,041	)
Dividends paid		(57	)		(39	)
Payment of debt		—			(21	)
Tax benefit for share-based compensation		33			10
Cash proceeds from exercise of stock options		18			8
Contribution by non-controlling interest		3			—

Net cash used in financing activities		(922	)		(1,083	)

Effect of exchange rate changes on cash and cash equivalents		(37	)		101

Net decrease in cash and cash equivalents		(581	)		(303	)
Cash and cash equivalents - beginning of period		3,734			3,067

Cash and cash equivalents - end of period	$	3,153		$	2,764

Non-Cash Investing and Financing Activities
Fair value of assets acquired, net of cash acquired	$	—		$	549

Fair value of liabilities assumed related to an acquisition	$	—		$	89

MasterCard Incorporated – Page 8

MASTERCARD INCORPORATED OPERATING PERFORMANCE


	For the 3 Months ended June 30, 2012
	GDV (Bil.)		Growth (USD)			Growth (Local)			Purchase Volume (Bil.)		Growth (Local)			Purchase Trans. (Mil.)		Cash Volume (Bil.)		Growth (Local)			Cash Trans. (Mil.)		Accounts (Mil.)		Cards (Mil.)		Acceptance Locations (Mil.)
All MasterCard Credit, Charge and Debit Programs
APMEA	$	233		19.2	%		22.8	%	$	158		21.9	%		1,662	$	75		24.9	%		573		326		353		10.2
Canada		32		3.4	%		7.9	%		29		8.9	%		324		3		-1.2	%		6		40		49		0.9
Europe		263		5.1	%		16.4	%		184		12.0	%		2,574		79		28.3	%		475		242		258		9.7
Latin America		71		3.2	%		18.7	%		43		24.2	%		795		28		11.2	%		177		113		137		4.8

Worldwide less United States		599		9.8	%		18.6	%		414		16.6	%		5,355		185		23.5	%		1,231		721		797		25.6
United States		291		8.7	%		8.7	%		246		8.7	%		4,395		44		8.5	%		302		278		310		8.7

Worldwide		890		9.4	%		15.2	%		661		13.5	%		9,750		229		20.3	%		1,533		999		1,107		34.3
MasterCard Credit and Charge Programs
Worldwide less United States		380		8.5	%		15.7	%		333		16.3	%		3,817		48		11.7	%		202		465		527
United States		142		3.2	%		3.2	%		135		5.2	%		1,574		6		-27.3	%		7		147		176

Worldwide		522		7.0	%		12.0	%		468		12.9	%		5,391		54		5.2	%		209		612		703
MasterCard Debit Programs
Worldwide less United States		219		12.3	%		24.0	%		82		17.6	%		1,538		137		28.2	%		1,029		256		270
United States		149		14.4	%		14.4	%		111		13.3	%		2,821		38		18.0	%		296		131		134

Worldwide		368		13.1	%		20.0	%		193		15.1	%		4,359		175		25.8	%		1,324		387		404

	For the 6 Months ended June 30, 2012
	GDV (Bil.)		Growth (USD)			Growth (Local)			Purchase Volume (Bil.)		Growth (Local)			Purchase Trans. (Mil.)		Cash Volume (Bil.)		Growth (Local)			Cash Trans. (Mil.)		Accounts (Mil.)		Cards (Mil.)
All MasterCard Credit, Charge and Debit Programs
APMEA	$	456		22.0	%		23.2	%	$	309		22.7	%		3,213	$	147		24.2	%		1,095		326		353
Canada		61		5.8	%		9.0	%		55		10.4	%		613		6		-3.3	%		11		40		49
Europe		505		8.8	%		17.4	%		357		13.1	%		4,934		148		29.1	%		896		242		258
Latin America		143		9.5	%		21.0	%		87		26.7	%		1,548		57		13.1	%		350		113		137

Worldwide less United States		1,165		13.5	%		19.6	%		808		17.8	%		10,309		357		23.7	%		2,352		721		797
United States		574		11.2	%		11.2	%		482		10.8	%		8,571		92		13.4	%		604		278		310

Worldwide		1,739		12.8	%		16.7	%		1,290		15.1	%		18,881		449		21.4	%		2,955		999		1,107
MasterCard Credit and Charge Programs
Worldwide less United States		742		12.0	%		16.8	%		649		17.6	%		7,365		93		11.8	%		389		465		527
United States		273		5.1	%		5.1	%		260		6.6	%		3,031		13		-18.3	%		13		147		176

Worldwide		1,015		10.1	%		13.4	%		909		14.2	%		10,397		106		6.9	%		402		612		703
MasterCard Debit Programs
Worldwide less United States		423		16.3	%		24.7	%		159		18.9	%		2,944		264		28.5	%		1,963		256		270
United States		301		17.5	%		17.5	%		222		16.2	%		5,540		79		21.4	%		590		131		134

Worldwide		724		16.8	%		21.6	%		381		17.3	%		8,484		343		26.8	%		2,554		387		404

	For the 3 Months ended June 30, 2011
	GDV (Bil.)		Growth (USD)			Growth (Local)			Purchase Volume (Bil.)		Growth (Local)			Purchase Trans. (Mil.)		Cash Volume (Bil.)		Growth (Local)			Cash Trans. (Mil.)		Accounts (Mil.)		Cards (Mil.)
All MasterCard Credit, Charge and Debit Programs
APMEA	$	196		36.3	%		24.7	%	$	132		27.2	%		1,394	$	64		20.0	%		443		287		313
Canada		31		15.0	%		8.1	%		28		10.3	%		293		3		-9.1	%		5		39		48
Europe		250		30.8	%		17.4	%		181		14.2	%		2,231		69		26.8	%		395		208		223
Latin America		69		34.9	%		24.7	%		40		28.4	%		671		29		19.8	%		170		105		129

Worldwide less United States		546		32.2	%		20.3	%		382		19.5	%		4,589		164		22.0	%		1,013		639		713
United States		267		9.9	%		9.9	%		227		11.3	%		3,987		41		2.6	%		270		268		302

Worldwide		813		23.9	%		16.6	%		608		16.3	%		8,576		205		17.6	%		1,283		907		1,014
MasterCard Credit and Charge Programs
Worldwide less United States		351		27.7	%		16.3	%		305		18.7	%		3,348		46		2.9	%		182		447		509
United States		137		5.3	%		5.3	%		129		6.0	%		1,522		9		-4.9	%		7		144		173

Worldwide		488		20.5	%		13.0	%		433		14.6	%		4,871		54		1.6	%		190		592		683
MasterCard Debit Programs
Worldwide less United States		195		41.3	%		28.0	%		77		23.0	%		1,240		118		31.5	%		830		192		203
United States		130		15.2	%		15.2	%		98		19.0	%		2,465		32		4.8	%		263		124		128

Worldwide		325		29.5	%		22.5	%		175		20.8	%		3,705		150		24.7	%		1,093		316		331

	For the 6 Months ended June 30, 2011
	GDV (Bil.)		Growth (USD)			Growth (Local)			Purchase Volume (Bil.)		Growth (Local)			Purchase Trans. (Mil.)		Cash Volume (Bil.)		Growth (Local)			Cash Trans. (Mil.)		Accounts (Mil.)		Cards (Mil.)
All MasterCard Credit, Charge and Debit Programs
APMEA	$	374		31.9	%		22.5	%	$	252		24.4	%		2,688	$	122		18.7	%		850		287		313
Canada		57		13.8	%		7.3	%		51		8.8	%		550		6		-4.1	%		10		39		48
Europe		464		23.3	%		16.4	%		339		13.5	%		4,245		125		24.9	%		735		208		223
Latin America		131		31.0	%		22.4	%		76		26.8	%		1,286		55		16.8	%		333		105		129

Worldwide less United States		1,026		26.7	%		18.7	%		718		18.1	%		8,770		308		20.2	%		1,928		639		713
United States		516		7.9	%		7.9	%		435		9.4	%		7,632		81		0.7	%		524		268		302

Worldwide		1,542		19.7	%		14.9	%		1,153		14.7	%		16,402		389		15.5	%		2,452		907		1,014
MasterCard Credit and Charge Programs
Worldwide less United States		663		22.3	%		14.5	%		575		17.0	%		6,412		87		0.5	%		347		447		509
United States		260		5.1	%		5.1	%		244		5.5	%		2,892		16		-0.5	%		14		144		173

Worldwide		922		16.9	%		11.7	%		819		13.3	%		9,304		103		0.3	%		361		592		683
MasterCard Debit Programs
Worldwide less United States		364		35.5	%		27.3	%		143		22.9	%		2,358		221		30.3	%		1,581		192		203
United States		256		11.0	%		11.0	%		191		14.8	%		4,740		65		1.0	%		510		124		128

Worldwide		620		24.2	%		20.0	%		334		18.1	%		7,098		285		22.2	%		2,091		316		331

APMEA = Asia Pacific / Middle East / Africa

Note that the figures in the preceding tables may not sum due to rounding; growth represents change from the comparable year-ago period

MasterCard Incorporated – Page 9

Footnote

The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions, accounts, cards and acceptance locations on a regional and global basis for MasterCard^®-branded and MasterCard Electronic™-branded cards. Growth rates over prior periods are provided for volume-based data.

Debit transactions on Maestro^® and Cirrus^®-branded cards, Mondex^® transactions and transactions involving brands other than MasterCard are not included in the preceding tables.

For purposes of the table: GDV represents purchase volume plus cash volume and includes the impact of balance transfers and convenience checks; “purchase volume” means the aggregate dollar amount of purchases made with MasterCard-branded cards for the relevant period; and “cash volume” means the aggregate dollar amount of cash disbursements obtained with MasterCard-branded cards for the relevant period. The number of cards includes virtual cards, which are MasterCard-branded payment accounts that do not generally have physical cards associated with them. Acceptance locations include merchant locations, ATMs and other locations where cash may be obtained.

The MasterCard payment product is comprised of credit, charge and debit programs, and data relating to each type of program is included in the tables. Debit programs include MasterCard-branded debit programs where the primary means of cardholder validation at the point of sale is for cardholders either to sign a sales receipt or enter a PIN. The tables include information with respect to transactions involving MasterCard-branded cards that are not processed by MasterCard and transactions for which MasterCard does not earn significant revenues.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which MasterCard volumes are reported. These exchange rates are calculated on a quarterly basis using the average exchange rate for each quarter. MasterCard reports period-over-period rates of change in purchase volume and cash volume on the basis of local currency information, in order to eliminate the impact of changes in the value of foreign currencies against the U.S. dollar in calculating such rates of change.

The data set forth in the GDV, purchase volume, purchase transactions, cash volume and cash transactions columns is provided by MasterCard customers and is subject to verification by MasterCard and partial cross-checking against information provided by MasterCard’s transaction processing systems. The data set forth in the accounts and cards columns is provided by MasterCard customers and is subject to certain limited verification by MasterCard. A portion of the data set forth in the accounts and cards columns reflects the impact of routine portfolio changes among customers and other practices that may lead to over counting of the underlying data in certain circumstances. In order to provide a true indication of how broadly our cards can be used, MasterCard seeks to provide the most accurate acceptance figures possible and to maintain that MasterCard acceptance is unsurpassed worldwide by periodically validating our results with third parties. The data set forth in the acceptance locations column is derived through a proprietary methodology designed to minimize the impact of multiple acquiring in certain markets. This data is based on information provided by our customers and other third parties and is subject to certain limited verification by MasterCard and partial cross-checking against information provided by MasterCard’s transaction processing systems. All data is subject to revision and amendment by MasterCard’s customers subsequent to the date of its release.

Performance information for prior periods can be found in the “Investor Relations” section of MasterCard’s website at www.mastercard.com.

###

MasterCard Incorporated – Page 10

GAAP Reconciliations

($ in millions, except per share data)


	Three Months Ended June 30, 2012									Three Months Ended June 30, 2011
	Actual			Special Item			Non-GAAP			Actual
Provision for litigation settlement	$	20		$	(20	)	$	—		$	—
Total operating expenses		846			(20	)		826			782
Operating income		974			20			994			885
Operating Margin		53.5	%					54.6	%		53.1	%
Income before income taxes		973			20			993			892
Income tax expense		273			7	a		280			284
Net Income Attributable to MasterCard		700			13			713			608

Basic Earnings per Share	$	5.56		$	0.11		$	5.67		$	4.77
Diluted Earnings per Share	$	5.55		$	0.10		$	5.65		$	4.76

a- Tax effect of provision for litigation settlement


	Six Months Ended June 30, 2012									Six Months Ended June 30, 2011
	Actual			Special Item			Non-GAAP			Actual
Provision for litigation settlement	$	20		$	(20	)	$	—		$	—
Total operating expenses		1,604			(20	)		1,584			1,447
Operating income		1,974			20			1,994			1,721
Operating Margin		55.2	%					55.7	%		54.3	%
Income before income taxes		1,972			20			1,992			1,728
Income tax expense		591			7	a		598			558
Net Income Attributable to MasterCard		1,382			13			1,395			1,170

Basic Earnings per Share	$	10.95		$	0.10		$	11.05		$	9.08
Diluted Earnings per Share	$	10.91		$	0.10		$	11.01		$	9.05

a- Tax effect of provision for litigation settlement

Note: Figures may not sum due to rounding

Attached files

Stock widget

Investing forum

Mastercard Inc Reports