8-K
Mastercard Inc (MA)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________
FORM 8-K _______________________________________
CURRENT REPORT Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): | January 29, 2020 | |||
|---|---|---|---|---|
| _______________________________________ | ||||
| Mastercard Incorporated | ||||
| (Exact name of registrant as specified in its charter) | ||||
| _______________________________________ | ||||
| Delaware | 001-32877 | 13-4172551 | ||
| (State or other jurisdiction <br>of incorporation) | (Commission File<br><br>Number) | (IRS Employer <br>Identification No.) | ||
| 2000 Purchase Street | 10577 | |||
| Purchase, | NY | |||
| (Address of principal executive offices) | (Zip Code) | |||
| (914) | 249-2000 | |||
| (Registrant's telephone number, including area code) | ||||
| NOT APPLICABLE | ||||
| (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange of which registered |
|---|---|---|
| Class A Common Stock | MA | New York Stock Exchange |
| 1.100% Notes due 2022 | MA22 | New York Stock Exchange |
| 2.100% Notes due 2027 | MA27 | New York Stock Exchange |
| 2.500% Notes due 2030 | MA30 | New York Stock Exchange |
1
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
2
Item 2.02 Results of Operations and Financial Condition
On January 29, 2020, Mastercard Incorporated issued an earnings release announcing financial results for its fourth quarter and full year 2019.
A copy of the earnings release is attached hereto as Exhibit 99.1. All information in the earnings release is furnished but not filed.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Exhibit Description |
|---|---|
| 99.1 | Earnings Release issued by Mastercard Incorporated, dated January 29, 2020 |
| 104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MASTERCARD INCORPORATED | |||
|---|---|---|---|
| Date: | January 29, 2020 | By: | /s/ Janet McGinness |
| Janet McGinness | |||
| Corporate Secretary |
4
Exhibit
| Earnings Release |
|---|
Mastercard Incorporated Reports Fourth-Quarter and Full-Year 2019 Financial Results
| • | Fourth-quarter net income of $2.1 billion, or diluted earnings per share (EPS) of $2.07 |
|---|---|
| • | Fourth-quarter adjusted net income of $2.0 billion, or adjusted diluted EPS of $1.96 |
| --- | --- |
| • | Fourth-quarter net revenue of $4.4 billion, an increase of 16%, or 17% on a currency-neutral basis |
| --- | --- |
| • | Fourth-quarter gross dollar volume up 12% and purchase volume up 13% |
| --- | --- |
Purchase, NY - January 29, 2020 - Mastercard Incorporated (NYSE: MA) today announced financial results for the fourth-quarter and full-year 2019.
“We closed out 2019 on a strong note, with broad-based growth driven by solid execution of our strategy and leveraging our differentiated services offerings,” said Ajay Banga, Mastercard president and CEO. “Our focus on the customer and delivering against their goals continues to drive core growth. With recent acquisitions helping to round out our multi-rail strategy and capabilities in key areas, such as digital, cyber and analytics, we are well positioned for the future.”
Quarterly Results
| Fourth-Quarter Operating Results | Increase / (decrease) | Q4 2019<br><br>Key Business Drivers<br><br>(YoY growth) | ||||
|---|---|---|---|---|---|---|
| $ in billions, except per share data | Q4 2019 | Q4 2018 | Reported GAAP | Currency-neutral | ||
| Net revenue | $4.4 | $3.8 | 16% | 17% | ||
| Operating expenses | $2.0 | $2.6 | (22)% | (21)% | ||
| Operating income | $2.4 | $1.2 | 94% | 96% |  |
Gross dollar volume |
| Operating margin | 54.4% | 32.4% | 21.9 ppt | 21.9 ppt | (local currency basis) | |
| Effective income tax rate | 15.1% | 26.0% | (10.9) ppt | (10.8) ppt | up 12% | |
| Net income | $2.1 | $0.9 | 134% | 136% | ||
| Diluted EPS | $2.07 | $0.87 | 138% | 141% | ||
 |
Cross-border volume^3^ | |||||
| Key Fourth-Quarter Non-GAAP Results ^1^ | Increase / (decrease) | (local currency basis) | ||||
| $ in billions, except per share data | Q4 2019 | Q4 2018 | As adjusted | Currency-neutral | up 16% | |
| Net revenue | $4.4 | $3.8 | 16% | 17% | ||
| Adjusted operating expenses | $2.0 | $1.8 | 11% | 12% | ||
| Adjusted operating margin | 54.4% | 52.3% | 2.1 ppt | 2.3 ppt |  |
Switched transactions^3^ |
| Adj. effective income tax rate ^2^ | 15.9% | 18.3% | (2.4) ppt | (2.2) ppt | ||
| Adjusted net income ^2^ | $2.0 | $1.6 | 23% | 25% | up 19% | |
| Adjusted diluted EPS ^2^ | $1.96 | $1.55 | 26% | 28% | ||
| 1.^^The Key Fourth-Quarter Non-GAAP Results exclude the impact of gains and losses on the company’s equity investments, special items as described on page 10 (“Fourth-Quarter Special Items”) and/or currency. See page 10 for the company’s non-GAAP adjustments and the reconciliation to GAAP reported amounts.<br><br>2. ^^For 2019 Mastercard updated its non-GAAP methodology to exclude the impact of gains and losses on the company’s equity investments. Prior year periods were not restated, as the impact of the change was de minimis.<br><br>3. ^^Growth rates normalized to eliminate the effects of differing switching and carryover days between periods. Carryover days are those where transactions and volumes from days where the company does not clear and settle are processed. |
The following additional details are provided to aid in understanding Mastercard’s fourth-quarter 2019 results, versus the year-ago period:
| • | Net revenue increased 16%, or 17% on a currency-neutral basis. This includes an approximately 1 percentage point increase due to acquisitions. The growth was driven by the impact of the following factors: |
|---|---|
| ◦ | A 12% increase in gross dollar volume, on a local currency basis, to $1.7 trillion. |
| --- | --- |
| ◦ | An increase in cross-border volume of 16% on a local currency basis. |
| --- | --- |
| ◦ | An increase in switched transactions of 19%. |
| --- | --- |
| ◦ | An increase in other revenues of 24%, or 25% on a currency-neutral basis. This includes a 4 percentage point increase due to acquisitions. The remaining growth was driven primarily by the company’s Cyber & Intelligence and Data & Services solutions. |
| --- | --- |
| ◦ | These increases were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes. |
| --- | --- |
| • | Total operating expenses decreased 22%, or 21% on a currency-neutral basis. Excluding the impact of Fourth-Quarter Special Items, adjusted operating expenses increased 11%, or 12% on a currency-neutral basis. This includes a 4 percentage point increase due to acquisitions and a 2 percentage point increase related to the differential in hedging gains and losses versus the year-ago period. The remaining 6 percentage points of growth was primarily related to the company’s continued investment in strategic initiatives. |
| --- | --- |
| • | Other income (expense) was favorable $95 million versus the year-ago period, primarily due to net unrealized gains recorded on equity investments in the current period. Excluding these gains, adjusted other income (expense) was unfavorable $24 million primarily due to higher interest expense related to 2019 debt issuances. |
| --- | --- |
| • | The effective tax rate for the fourth quarter of 2019 was 15.1%, versus 26.0% for the comparable period in 2018. The adjusted effective tax rate for the fourth quarter of 2019 was 15.9%, versus 18.3% for the comparable period in 2018, primarily attributable to a more favorable geographic mix of earnings in the current period. |
| --- | --- |
| • | As of December 31, 2019, the company’s customers had issued 2.6 billion Mastercard and Maestro-branded cards. |
| --- | --- |
Return of Capital to Shareholders
During the fourth quarter of 2019, Mastercard repurchased approximately 3.6 million shares at a cost of $1.0 billion and paid $333 million in dividends. Quarter-to-date through January 27, the company repurchased an additional 1.4 million shares at a cost of $438 million, which leaves $7.9 billion remaining under current repurchase program authorizations.
| 2 |
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Full-Year 2019 Results
| Full-Year 2019 Operating Results | Increase / (decrease) | FY 2019<br><br>Key Business Drivers<br><br>(YoY growth) | ||||
|---|---|---|---|---|---|---|
| $ in billions, except per share data | 2019 | 2018 | Reported GAAP | Currency-neutral | ||
| Net revenue | $16.9 | $15.0 | 13% | 16% | ||
| Operating expenses | $7.2 | $7.7 | (6)% | (4)% | ||
| Operating income | $9.7 | $7.3 | 33% | 37% | |
Gross dollar volume |
| Operating margin | 57.2% | 48.7% | 8.5 ppt | 8.8 ppt | (local currency basis) | |
| Effective income tax rate | 16.6% | 18.7% | (2.1) ppt | (1.9) ppt | up 13% | |
| Net income | $8.1 | $5.9 | 39% | 42% | ||
| Diluted EPS | $7.94 | $5.60 | 42% | 46% | ||
|
Cross-border volume^3^ | |||||
| Key Full-Year 2019 Non-GAAP Results ^1^ | Increase / (decrease) | (local currency basis) | ||||
| $ in billions, except per share data | 2019 | 2018 | As adjusted | Currency-neutral | up 16% | |
| Net revenue | $16.9 | $15.0 | 13% | 16% | ||
| Adjusted operating expenses | $7.2 | $6.5 | 10% | 12% | ||
| Adjusted operating margin | 57.2% | 56.2% | 1.0 ppt | 1.3 ppt | |
Switched transactions^3^ |
| Adj. effective income tax rate ^2^ | 17.0% | 18.5% | (1.5) ppt | (1.3) ppt | ||
| Adjusted net income ^2^ | $7.9 | $6.8 | 17% | 20% | up 19% | |
| Adjusted diluted EPS ^2^ | $7.77 | $6.49 | 20% | 23% | ||
| 1. The Key Full-Year 2019 Non-GAAP Results exclude the impact of gains and losses on the company’s equity investments, special items as described on page 11 (“Full-Year Special Items”) and/or currency. See page 11 for the company’s non-GAAP adjustments and the reconciliation to GAAP reported amounts.<br><br>2. For 2019, Mastercard updated its non-GAAP methodology to exclude the impact of gains and losses on the company’s equity investments. Prior year periods were not restated, as the impact of the change was de minimis.<br><br>3. ^^Growth rates normalized to eliminate the effects of differing switching and carryover days between periods. Carryover days are those where transactions and volumes from days where the company does not clear and settle are processed. |
The following additional details are provided to aid in understanding Mastercard’s full-year 2019 results, versus the year-ago period:
| • | Net revenue increased 13%, or 16% on a currency-neutral basis. This includes an approximately 1 percentage point increase due to acquisitions. This growth was driven by the impact of the following factors: |
|---|---|
| ◦ | A 13% increase in gross dollar volume, on a local currency basis, to $6.5 trillion. |
| --- | --- |
| ◦ | An increase in cross-border volume of 16% on a local currency basis. |
| --- | --- |
| ◦ | An increase in switched transactions of 19%. |
| --- | --- |
| ◦ | An increase in other revenues of 23%, or 24% on a currency-neutral basis. This includes a 2 percentage point increase due to acquisitions. The remaining growth was driven primarily by the company’s Cyber & Intelligence and Data & Services solutions. |
| --- | --- |
| ◦ | These increases were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes. |
| --- | --- |
| • | Total operating expenses decreased 6%, or 4% on a currency-neutral basis. Excluding the impact of Full-Year Special Items, adjusted operating expenses increased 10%, or 12% on a currency-neutral basis. This includes a 2 percentage point increase due to acquisitions and a 1 percentage point increase related to the differential in hedging gains and losses versus the year-ago period. The remaining 9 percentage points of growth was primarily related to the company’s continued investment in strategic initiatives. |
| --- | --- |
| 3 | |
| --- |
| • | Other income (expense) was favorable $145 million versus the year-ago period, primarily due to net unrealized gains recorded on equity investments in the current period. Excluding these gains, adjusted other income (expense) was unfavorable $22 million primarily due to higher interest expense related to 2019 debt issuances. |
|---|---|
| • | The effective income tax rate for 2019 was 16.6%, versus 18.7% for the comparable period in 2018. The adjusted effective tax rate was 17.0%, versus 18.5% for the comparable period in 2018, primarily attributable to a more favorable geographic mix of earnings in the current period and discrete tax benefits including a favorable court ruling in the third quarter of 2019. |
| --- | --- |
Return of Capital to Shareholders
For the full year of 2019, Mastercard repurchased approximately 26.4 million shares at a cost of $6.5 billion and paid $1.3 billion in dividends.
Fourth-Quarter 2019 Financial Results Conference Call Details
At 9:00 a.m. ET today, the company will host a conference call to discuss its fourth-quarter 2019 results.
The dial-in information for this call is 833-236-5755 (within the U.S.) and 647-689-4183 (outside the U.S.). A replay of the call will be available for 30 days and can be accessed by dialing 800-585-8367 (within the U.S.) and 416-621-4642 (outside the U.S.), using passcode 6483328.
A live audio webcast of this call, along with presentation slides, can also be accessed through the Investor Relations section of the company’s website at investor.mastercard.com.
Forward-Looking Statements
This press release contains forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements. When used in this press release, the words “believe”, “expect”, “could”, “may”, “would”, “will”, “trend” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements that relate to Mastercard’s future prospects, developments and business strategies. We caution you to not place undue reliance on these forward-looking statements, as they speak only as of the date they are made. 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.
Many factors and uncertainties relating to our operations and business environment, all of which are difficult to predict and many of which are outside of our control, influence whether any forward-looking statements can or will be achieved. Any one of those factors could cause our actual results to differ materially from those expressed or implied in writing in any forward-looking statements made by Mastercard or on its behalf, including, but not limited to, the following factors:
| • | regulation directly related to the payments industry (including regulatory, legislative and litigation activity with respect to interchange rates, surcharging and the extension of current regulatory activity to additional jurisdictions or products) |
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| • | the impact of preferential or protective government actions |
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| • | regulation of privacy, data protection, security and the digital economy |
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| 4 | |
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| • | regulation that directly or indirectly applies to us based on our participation in the global payments industry (including anti-money laundering, counter terrorist financing, economic sanctions and anti-corruption; account-based payment systems; issuer practice regulation; and regulation of internet and digital transactions) |
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| • | the impact of changes in tax laws, as well as regulations and interpretations of such laws or challenges to our tax positions |
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| • | potential or incurred liability and limitations on business related to any litigation or litigation settlements |
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| • | the impact of competition in the global payments industry (including disintermediation and pricing pressure) |
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| • | the challenges relating to rapid technological developments and changes |
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| • | the challenges relating to operating real-time account-based payment system and to working with new customers and end users |
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| • | the impact of information security incidents, account data breaches, fraudulent activity or service disruptions |
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| • | issues related to our relationships with our financial institution customers (including loss of substantial business from significant customers, competitor relationships with our customers and banking industry consolidation) |
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| • | the impact of our relationships with other stakeholders, including merchants and governments |
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| • | exposure to loss or illiquidity due to our role as guarantor, as well as other contractual obligations |
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| • | the impact of global economic, political, financial and societal events and conditions |
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| • | reputational impact, including impact related to brand perception |
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| • | the inability to attract, hire and retain a highly qualified and diverse workforce, or maintain our corporate culture |
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| • | issues related to acquisition integration, strategic investments and entry into new businesses |
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| • | issues related to our Class A common stock and corporate governance structure |
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For additional information on these and other factors that could cause the company’s actual results to differ materially from expected results, please see the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2018 and any subsequent reports on Forms 10-Q and 8-K.
About Mastercard Incorporated
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. Our global payments processing network connects consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard 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 Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
Contacts:
| Investor Relations: | Media Relations: |
|---|---|
| Warren Kneeshaw or Gina Accordino | Seth Eisen |
| investor.relations@mastercard.com | Seth.Eisen@mastercard.com |
| 914-249-4565 | 914-249-3153 |
| 5 | |
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| Consolidated Statement of Operations (Unaudited) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| (in millions, except per share data) | ||||||||||||
| Net Revenue | $ | 4,414 | $ | 3,807 | $ | 16,883 | $ | 14,950 | ||||
| Operating Expenses | ||||||||||||
| General and administrative | 1,579 | 1,401 | 5,763 | 5,174 | ||||||||
| Advertising and marketing | 290 | 302 | 934 | 907 | ||||||||
| Depreciation and amortization | 146 | 113 | 522 | 459 | ||||||||
| Provision for litigation | — | 757 | — | 1,128 | ||||||||
| Total operating expenses | 2,015 | 2,573 | 7,219 | 7,668 | ||||||||
| Operating income | 2,399 | 1,234 | 9,664 | 7,282 | ||||||||
| Other Income (Expense) | ||||||||||||
| Investment income | 20 | 43 | 97 | 122 | ||||||||
| Gains (losses) on equity investments, net | 119 | — | 167 | — | ||||||||
| Interest expense | (64 | ) | (47 | ) | (224 | ) | (186 | ) | ||||
| Other income (expense), net | 1 | (15 | ) | 27 | (14 | ) | ||||||
| Total other income (expense) | 76 | (19 | ) | 67 | (78 | ) | ||||||
| Income before income taxes | 2,475 | 1,215 | 9,731 | 7,204 | ||||||||
| Income tax expense | 375 | 316 | 1,613 | 1,345 | ||||||||
| Net Income | $ | 2,100 | $ | 899 | $ | 8,118 | $ | 5,859 | ||||
| Basic Earnings per Share | $ | 2.08 | $ | 0.87 | $ | 7.98 | $ | 5.63 | ||||
| Basic weighted-average shares outstanding | 1,008 | 1,032 | 1,017 | 1,041 | ||||||||
| Diluted Earnings per Share | $ | 2.07 | $ | 0.87 | $ | 7.94 | $ | 5.60 | ||||
| Diluted weighted-average shares outstanding | 1,013 | 1,038 | 1,022 | 1,047 | ||||||||
| 6 | ||||||||||||
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| Consolidated Balance Sheet (Unaudited) | ||||||
|---|---|---|---|---|---|---|
| December 31, 2019 | December 31, 2018 | |||||
| (in millions, except per share data) | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 6,988 | $ | 6,682 | ||
| Restricted cash for litigation settlement | 584 | 553 | ||||
| Investments | 688 | 1,696 | ||||
| Accounts receivable | 2,514 | 2,276 | ||||
| Settlement due from customers | 2,995 | 2,452 | ||||
| Restricted security deposits held for customers | 1,370 | 1,080 | ||||
| Prepaid expenses and other current assets | 1,763 | 1,432 | ||||
| Total current assets | 16,902 | 16,171 | ||||
| Property, equipment and right-of-use assets, net | 1,828 | 921 | ||||
| Deferred income taxes | 543 | 570 | ||||
| Goodwill | 4,021 | 2,904 | ||||
| Other intangible assets, net | 1,417 | 991 | ||||
| Other assets | 4,525 | 3,303 | ||||
| Total Assets | $ | 29,236 | $ | 24,860 | ||
| Liabilities, Redeemable Non-controlling Interests and Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 489 | $ | 537 | ||
| Settlement due to customers | 2,714 | 2,189 | ||||
| Restricted security deposits held for customers | 1,370 | 1,080 | ||||
| Accrued litigation | 914 | 1,591 | ||||
| Accrued expenses | 5,489 | 4,747 | ||||
| Current portion of long-term debt | — | 500 | ||||
| Other current liabilities | 928 | 949 | ||||
| Total current liabilities | 11,904 | 11,593 | ||||
| Long-term debt | 8,527 | 5,834 | ||||
| Deferred income taxes | 85 | 67 | ||||
| Other liabilities | 2,729 | 1,877 | ||||
| Total Liabilities | 23,245 | 19,371 | ||||
| Commitments and Contingencies | ||||||
| Redeemable Non-controlling Interests | 74 | 71 | ||||
| Stockholders’ Equity | ||||||
| Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,391 and 1,387 shares issued and 996 and 1,019 outstanding, respectively | — | — | ||||
| Class B common stock, $0.0001 par value; authorized 1,200 shares, 11 and 12 issued and outstanding, respectively | — | — | ||||
| Additional paid-in-capital | 4,787 | 4,580 | ||||
| Class A treasury stock, at cost, 395 and 368 shares, respectively | (32,205 | ) | (25,750 | ) | ||
| Retained earnings | 33,984 | 27,283 | ||||
| Accumulated other comprehensive income (loss) | (673 | ) | (718 | ) | ||
| Mastercard Incorporated Stockholders' Equity | 5,893 | 5,395 | ||||
| Non-controlling interests | 24 | 23 | ||||
| Total Equity | 5,917 | 5,418 | ||||
| Total Liabilities, Redeemable Non-controlling Interests and Equity | $ | 29,236 | $ | 24,860 | ||
| 7 | ||||||
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| Consolidated Statement of Cash Flows (Unaudited) | ||||||
|---|---|---|---|---|---|---|
| For the Years Ended December 31, | ||||||
| 2019 | 2018 | |||||
| (in millions) | ||||||
| Operating Activities | ||||||
| Net income | $ | 8,118 | $ | 5,859 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Amortization of customer and merchant incentives | 1,141 | 1,235 | ||||
| Depreciation and amortization | 522 | 459 | ||||
| (Gains) losses on equity investments, net | (167 | ) | — | |||
| Share-based compensation | 250 | 196 | ||||
| Deferred income taxes | (7 | ) | (244 | ) | ||
| Other | 24 | 31 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (246 | ) | (317 | ) | ||
| Income taxes receivable | (202 | ) | (120 | ) | ||
| Settlement due from customers | (444 | ) | (1,078 | ) | ||
| Prepaid expenses | (1,661 | ) | (1,769 | ) | ||
| Accrued litigation and legal settlements | (662 | ) | 869 | |||
| Restricted security deposits held for customers | 290 | (6 | ) | |||
| Accounts payable | (42 | ) | 101 | |||
| Settlement due to customers | 477 | 849 | ||||
| Accrued expenses | 657 | 439 | ||||
| Long-term taxes payable | 2 | (20 | ) | |||
| Net change in other assets and liabilities | 133 | (261 | ) | |||
| Net cash provided by operating activities | 8,183 | 6,223 | ||||
| Investing Activities | ||||||
| Purchases of investment securities available-for-sale | (643 | ) | (1,300 | ) | ||
| Purchases of investments held-to-maturity | (215 | ) | (509 | ) | ||
| Proceeds from sales of investment securities available-for-sale | 1,098 | 604 | ||||
| Proceeds from maturities of investment securities available-for-sale | 376 | 379 | ||||
| Proceeds from maturities of investments held-to-maturity | 383 | 929 | ||||
| Purchases of property and equipment | (422 | ) | (330 | ) | ||
| Capitalized software | (306 | ) | (174 | ) | ||
| Purchases of equity investments | (467 | ) | (91 | ) | ||
| Acquisition of businesses, net of cash acquired | (1,440 | ) | — | |||
| Other investing activities | (4 | ) | (14 | ) | ||
| Net cash used in investing activities | (1,640 | ) | (506 | ) | ||
| Financing Activities | ||||||
| Purchases of treasury stock | (6,497 | ) | (4,933 | ) | ||
| Dividends paid | (1,345 | ) | (1,044 | ) | ||
| Proceeds from debt | 2,724 | 991 | ||||
| Payment of debt | (500 | ) | — | |||
| Contingent consideration paid | (199 | ) | — | |||
| Tax withholdings related to share-based payments | (161 | ) | (80 | ) | ||
| Cash proceeds from exercise of stock options | 126 | 104 | ||||
| Other financing activities | (15 | ) | (4 | ) | ||
| Net cash used in financing activities | (5,867 | ) | (4,966 | ) | ||
| Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (44 | ) | (6 | ) | ||
| Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 632 | 745 | ||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period | 8,337 | 7,592 | ||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period | $ | 8,969 | $ | 8,337 | ||
| 8 | ||||||
| --- |
Non-GAAP Financial Information
Mastercard discloses the following non-GAAP financial measures: adjusted operating expenses, adjusted operating margin, adjusted other income (expense), adjusted effective income tax rate, adjusted net income and adjusted diluted earnings per share (as well as related applicable growth rates versus the comparable period in the prior year). These non-GAAP financial measures exclude the impact of gains and losses on the company’s equity investments which includes mark-to-market fair value adjustments, impairments and gains and losses upon disposition, as well as the related tax impacts. These non-GAAP financial measures also exclude the impact of special items which represent litigation judgments and settlements and certain one-time items, as well as the related tax impacts. The company excluded these items because management evaluates the underlying operations and performance of the company separately from these recurring and nonrecurring items.
In addition, the company presents growth rates, including net revenue, adjusted for the impact of currency, which is a non-GAAP financial measure. Currency-neutral growth rates are calculated by remeasuring the prior period’s results using the current period’s exchange rates for both the translational and transactional impacts on operating results. The impact of currency translation represents the effect of translating operating results where the functional currency is different from the company’s U.S. dollar reporting currency. The impact of the transactional currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency. The company believes the presentation of currency-neutral growth rates provides relevant information to understanding its operating results.
The company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation.
The company includes reconciliations of the requisite non-GAAP financial measures to the most directly comparable GAAP financial measures. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for the company’s related financial results prepared in accordance with GAAP.
| 9 |
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| Non-GAAP Reconciliations (QTD) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended December 31, 2019 | ||||||||||||||
| Operating expenses | Operating margin | Other Income (Expense) | Effective income tax rate | Net income | Diluted earnings per share | |||||||||
| ( in millions, except per share data) | ||||||||||||||
| Reported - GAAP | 54.4 | % | $ | 76 | 15.1 | % | $ | 2,100 | $ | 2.07 | ||||
| (Gains) losses on equity investments ^1^ | ** | ** | (119 | ) | (0.4 | )% | (92 | ) | (0.09 | ) | ||||
| Tax act ^2^ | ** | ** | ** | 1.2 | % | (27 | ) | (0.03 | ) | |||||
| Non-GAAP | 54.4 | % | $ | (43 | ) | 15.9 | % | $ | 1,981 | $ | 1.96 |
All values are in US Dollars.
| Three Months Ended December 31, 2018 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating expenses | Operating margin | Other Income (Expense) | Effective income tax rate | Net income | Diluted earnings per share | ||||||||||
| ( in millions, except per share data) | |||||||||||||||
| Reported - GAAP | 32.4 | % | $ | (19 | ) | 26.0 | % | $ | 899 | $ | 0.87 | ||||
| Litigation provisions ^3^ | (757 | ) | 19.9 | % | ** | (10.8 | )% | 772 | 0.74 | ||||||
| Tax act ^4^ | ** | ** | ** | 3.0 | % | (59 | ) | (0.06 | ) | ||||||
| Non-GAAP | 52.3 | % | $ | (19 | ) | 18.3 | % | $ | 1,611 | $ | 1.55 |
All values are in US Dollars.
| Three Months Ended December 31, 2019 as compared to the Three Months Ended December 31, 2018 | ||||||
|---|---|---|---|---|---|---|
| Increase/(Decrease) | ||||||
| Net revenue | Operating expenses | Operating margin | Effective income tax rate | Net income | Diluted earnings per share | |
| Reported - GAAP | 16% | (22)% | 21.9 ppt | (10.9) ppt | 134% | 138% |
| (Gains) losses on equity investments ^1^ | ** | ** | ** | (0.4) ppt | (10)% | (10)% |
| Tax act ^2,4^ | ** | ** | ** | (1.9) ppt | 13% | 13% |
| Litigation provisions ^3^ | ** | 33% | (19.9) ppt | 10.8 ppt | (113)% | (114)% |
| Non-GAAP | 16% | 11% | 2.1 ppt | (2.4) ppt | 23% | 26% |
| Currency impact ^5^ | 1% | 1% | 0.2 ppt | 0.1 ppt | 2% | 2% |
| Non-GAAP - currency-neutral | 17% | 12% | 2.3 ppt | (2.2) ppt | 25% | 28% |
| Note: | Tables may not sum due to rounding. | |||||
| --- | --- | |||||
| ** | Not applicable | |||||
| --- | --- |
Gains and Losses on Equity Investments
- For 2019, Mastercard updated its non-GAAP methodology to exclude the impact of gains and losses on the company’s equity investments. Q4’19 net gains of $119 million primarily related to unrealized fair market value adjustments on marketable and non-marketable equity securities. Prior year periods were not restated, as the impact of the change was de minimis.
Fourth-Quarter Special Items
Q4’19 tax benefit of $27 million related to additional foreign tax credits which can be carried back under the transition rules contained in the final foreign tax credit regulations issued in 2019.
Q4’18 pre-tax charges of $757 million related to a $654 million fine issued by the European Commission and $103 million of litigation settlements with U.K. and Pan-European merchants.
Q4’18 net tax benefit of $59 million comprised of a $90 million benefit related to the carryback of foreign tax credits due to transition rules, offset by a net $31 million expense primarily related to the the true-up of 2017 one-time deemed repatriation tax on accumulated foreign earnings (the “Transition Tax”).
Other Notes
- Represents the currency translational and transactional impact.
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| Non-GAAP Reconciliations (YTD) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Twelve Months Ended December 31, 2019 | ||||||||||||||
| Operating expenses | Operating margin | Other Income (Expense) | Effective income tax rate | Net income | Diluted earnings per share | |||||||||
| ( in millions, except per share data) | ||||||||||||||
| Reported - GAAP | 57.2 | % | $ | 67 | 16.6 | % | $ | 8,118 | $ | 7.94 | ||||
| (Gains) losses on equity investments ^1^ | ** | ** | (167 | ) | (0.2 | )% | (124 | ) | (0.12 | ) | ||||
| Tax act ^2^ | ** | ** | ** | 0.6 | % | (57 | ) | (0.06 | ) | |||||
| Non-GAAP | 57.2 | % | $ | (100 | ) | 17.0 | % | $ | 7,937 | $ | 7.77 |
All values are in US Dollars.
| Twelve Months Ended December 31, 2018 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating expenses | Operating margin | Other Income (Expense) | Effective income tax rate | Net income | Diluted earnings per share | ||||||||||
| ( in millions, except per share data) | |||||||||||||||
| Reported - GAAP | 48.7 | % | $ | (78 | ) | 18.7 | % | $ | 5,859 | $ | 5.60 | ||||
| Litigation provisions ^3^ | (1,128 | ) | 7.5 | % | ** | (1.1 | )% | 1,008 | 0.96 | ||||||
| Tax act ^4^ | ** | ** | ** | 0.9 | % | (75 | ) | (0.07 | ) | ||||||
| Non-GAAP | 56.2 | % | $ | (78 | ) | 18.5 | % | $ | 6,792 | $ | 6.49 |
All values are in US Dollars.
| Twelve Months Ended December 31, 2019 as compared to the Twelve Months Ended December 31, 2018 | ||||||
|---|---|---|---|---|---|---|
| Increase/(Decrease) | ||||||
| Net revenue | Operating expenses | Operating margin | Effective income tax rate | Net income | Diluted earnings per share | |
| Reported - GAAP | 13% | (6)% | 8.5 ppt | (2.1) ppt | 39% | 42% |
| (Gains) losses on equity investments ^1^ | ** | ** | ** | (0.2) ppt | (2)% | (2)% |
| Tax act ^2, 4^ | ** | ** | ** | (0.3) ppt | 1% | 1% |
| Litigation provisions ^3^ | ** | 16% | (7.5) ppt | 1.1 ppt | (20)% | (21)% |
| Non-GAAP | 13% | 10% | 1.0 ppt | (1.5) ppt | 17% | 20% |
| Currency impact ^5^ | 3% | 2% | 0.3 ppt | 0.2 ppt | 3% | 3% |
| Non-GAAP - currency-neutral | 16% | 12% | 1.3 ppt | (1.3) ppt | 20% | 23% |
| Note: | Tables may not sum due to rounding. | |||||
| --- | --- | |||||
| ** | Not applicable | |||||
| --- | --- |
Gains and Losses on Equity Investments
- For 2019 Mastercard updated its non-GAAP methodology to exclude the impact of gains and losses on the company’s equity investments. Fiscal year 2019 net gains of $167 million primarily related to unrealized fair market value adjustments on marketable and non-marketable equity securities. Prior year periods were not restated, as the impact of the change was de minimis.
Full-Year Special Items
Fiscal year 2019 net tax benefit of $57 million included a $30 million benefit related to a reduction to the Transition Tax resulting from final tax regulations issued in 2019 and a $27 million benefit related to additional foreign tax credits which can be carried back under the transition rules contained in the final foreign tax credit regulations issued in 2019.
Fiscal year 2018 pre-tax charges of $1,128 million related to a $654 million fine issued by the European Commission, $237 million related to both the U.S. merchant class litigation and the filed and anticipated opt-out U.S. merchant cases and $237 million of litigation settlements with U.K. and Pan-European merchants.
Fiscal year 2018 net tax benefit of $75 million included a $90 million benefit related to the carryback of foreign tax credits due to the transition rules, offset by a net $15 million expense primarily related to the true-up to the Transition Tax.
Other Notes
- Represents the currency translational and transactional impact.
| 11 |
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| Mastercard Incorporated Operating Performance | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the 3 Months Ended December 31, 2019 | ||||||||||||||||||
| GDV (Bil.) | Growth () | Growth (Local) | Purchase Volume (Bil.) | Growth (Local) | Purchase Trans. (Mil.) | Purchase Trans. Growth | Cash Volume (Bil.) | Growth (Local) | Cash Trans. (Mil.) | Cards (Mil.) | ||||||||
| All Mastercard Credit, Charge and Debit Programs | ||||||||||||||||||
| APMEA | $ | 518 | 10.6 | 11.3 | % | $ | 345 | 9.8 | % | 6,868 | 17.3 | % | $ | 173 | 14.4 | % | 1,799 | 829 |
| Canada | 49 | 5.3 | 5.2 | % | 47 | 5.6 | % | 753 | 7.8 | % | 2 | (5.5 | )% | 6 | 62 | |||
| Europe | 530 | 15.6 | 16.9 | % | 355 | 18.4 | % | 10,776 | 28.1 | % | 175 | 13.9 | % | 1,210 | 599 | |||
| Latin America | 123 | 10.9 | 14.6 | % | 79 | 19.3 | % | 3,084 | 21.9 | % | 43 | 6.9 | % | 320 | 211 | |||
| Worldwide less United States | 1,219 | 12.5 | 13.7 | % | 826 | 14.0 | % | 21,480 | 22.8 | % | 393 | 13.2 | % | 3,334 | 1,701 | |||
| United States | 507 | 9.0 | 9.0 | % | 449 | 10.0 | % | 7,897 | 9.0 | % | 59 | 2.1 | % | 323 | 473 | |||
| Worldwide | 1,726 | 11.5 | 12.3 | % | 1,275 | 12.5 | % | 29,377 | 18.8 | % | 452 | 11.6 | % | 3,656 | 2,174 | |||
| Mastercard Credit and Charge Programs | ||||||||||||||||||
| Worldwide less United States | 602 | 7.4 | 9.3 | % | 557 | 9.2 | % | 10,534 | 16.9 | % | 44 | 11.0 | % | 199 | 700 | |||
| United States | 254 | 11.6 | 11.6 | % | 244 | 11.5 | % | 2,795 | 12.5 | % | 10 | 13.4 | % | 9 | 243 | |||
| Worldwide | 856 | 8.6 | 10.0 | % | 801 | 9.9 | % | 13,330 | 15.9 | % | 54 | 11.4 | % | 208 | 943 | |||
| Mastercard Debit Programs | ||||||||||||||||||
| Worldwide less United States | 617 | 18.0 | 18.4 | % | 269 | 25.4 | % | 10,946 | 29.1 | % | 348 | 13.5 | % | 3,135 | 1,001 | |||
| United States | 253 | 6.5 | 6.5 | % | 205 | 8.2 | % | 5,101 | 7.2 | % | 49 | 0.1 | % | 313 | 230 | |||
| Worldwide | 870 | 14.4 | 14.7 | % | 473 | 17.3 | % | 16,047 | 21.2 | % | 397 | 11.7 | % | 3,448 | 1,231 | |||
| For the 12 Months Ended December 31, 2019 | ||||||||||||||||||
| GDV (Bil.) | Growth () | Growth (Local) | Purchase Volume (Bil.) | Growth (Local) | Purchase Trans. (Mil.) | Purchase Trans. Growth | Cash Volume (Bil.) | Growth (Local) | Cash Trans. (Mil.) | Cards (Mil.) | ||||||||
| All Mastercard Credit, Charge and Debit Programs | ||||||||||||||||||
| APMEA | $ | 1,947 | 8.1 | 11.6 | % | $ | 1,298 | 9.9 | % | 25,274 | 18.7 | % | $ | 649 | 15.2 | % | 6,783 | 829 |
| Canada | 181 | 4.5 | 6.8 | % | 174 | 7.1 | % | 2,821 | 11.1 | % | 7 | 1.1 | % | 22 | 62 | |||
| Europe | 1,945 | 11.9 | 18.1 | % | 1,300 | 19.7 | % | 38,889 | 29.7 | % | 645 | 15.0 | % | 4,621 | 599 | |||
| Latin America | 451 | 9.4 | 15.5 | % | 292 | 20.1 | % | 11,206 | 23.5 | % | 159 | 7.9 | % | 1,191 | 211 | |||
| Worldwide less United States | 4,523 | 9.7 | 14.5 | % | 3,064 | 14.7 | % | 78,190 | 24.3 | % | 1,459 | 14.2 | % | 12,617 | 1,701 | |||
| United States | 1,938 | 9.5 | 9.5 | % | 1,701 | 10.7 | % | 30,095 | 9.8 | % | 237 | 1.8 | % | 1,320 | 473 | |||
| Worldwide | 6,461 | 9.6 | 13.0 | % | 4,764 | 13.2 | % | 108,285 | 19.9 | % | 1,696 | 12.3 | % | 13,938 | 2,174 | |||
| Mastercard Credit and Charge Programs | ||||||||||||||||||
| Worldwide less United States | 2,268 | 4.6 | 9.7 | % | 2,105 | 9.9 | % | 38,841 | 17.8 | % | 163 | 7.3 | % | 746 | 700 | |||
| United States | 948 | 12.1 | 12.1 | % | 910 | 12.2 | % | 10,294 | 13.5 | % | 38 | 8.7 | % | 36 | 243 | |||
| Worldwide | 3,217 | 6.7 | 10.4 | % | 3,015 | 10.6 | % | 49,135 | 16.9 | % | 202 | 7.6 | % | 782 | 943 | |||
| Mastercard Debit Programs | ||||||||||||||||||
| Worldwide less United States | 2,255 | 15.3 | 19.8 | % | 959 | 26.6 | % | 39,349 | 31.5 | % | 1,296 | 15.1 | % | 11,871 | 1,001 | |||
| United States | 989 | 7.2 | 7.2 | % | 791 | 9.0 | % | 19,801 | 8.1 | % | 199 | 0.6 | % | 1,285 | 230 | |||
| Worldwide | 3,244 | 12.7 | 15.6 | % | 1,749 | 18.0 | % | 59,150 | 22.6 | % | 1,494 | 13.0 | % | 13,156 | 1,231 | |||
| Mastercard Incorporated Operating Performance (continued) | ||||||||||||||||||
| For the 3 Months ended December 31, 2018 | ||||||||||||||||||
| GDV (Bil.) | Growth () | Growth (Local) | Purchase Volume (Bil.) | Growth (Local) | Purchase Trans. (Mil.) | Purchase Trans. Growth | Cash Volume (Bil.) | Growth (Local) | Cash Trans. (Mil.) | Cards (Mil.) | ||||||||
| All Mastercard Credit, Charge and Debit Programs | ||||||||||||||||||
| APMEA | $ | 468 | 8.6 | 13.0 | % | $ | 319 | 13.7 | % | 5,856 | 22.0 | % | $ | 149 | 11.6 | % | 1,624 | 791 |
| Canada | 46 | 7.3 | 11.6 | % | 45 | 11.5 | % | 698 | 16.6 | % | 2 | 13.8 | % | 6 | 61 | |||
| Europe | 458 | 10.9 | 19.7 | % | 304 | 22.8 | % | 8,410 | 30.2 | % | 154 | 14.0 | % | 1,099 | 528 | |||
| Latin America | 111 | 4.0 | 16.8 | % | 71 | 21.6 | % | 2,529 | 21.2 | % | 40 | 9.4 | % | 298 | 183 | |||
| Worldwide less United States | 1,083 | 9.0 | 16.1 | % | 738 | 17.9 | % | 17,494 | 25.5 | % | 346 | 12.4 | % | 3,026 | 1,563 | |||
| United States | 465 | 10.2 | 10.2 | % | 408 | 11.4 | % | 7,242 | 11.2 | % | 57 | 2.1 | % | 328 | 437 | |||
| Worldwide | 1,549 | 9.4 | 14.3 | % | 1,146 | 15.5 | % | 24,736 | 20.9 | % | 403 | 10.8 | % | 3,355 | 1,999 | |||
| Mastercard Credit and Charge Programs | ||||||||||||||||||
| Worldwide less United States | 560 | 5.7 | 12.8 | % | 520 | 13.5 | % | 9,012 | 18.0 | % | 40 | 5.0 | % | 187 | 641 | |||
| United States | 228 | 9.8 | 9.8 | % | 219 | 10.4 | % | 2,485 | 11.9 | % | 9 | (3.3 | )% | 9 | 227 | |||
| Worldwide | 788 | 6.9 | 11.9 | % | 739 | 12.5 | % | 11,497 | 16.6 | % | 49 | 3.4 | % | 196 | 868 | |||
| Mastercard Debit Programs | ||||||||||||||||||
| Worldwide less United States | 523 | 12.8 | 19.8 | % | 218 | 30.0 | % | 8,481 | 34.5 | % | 305 | 13.5 | % | 2,839 | 921 | |||
| United States | 238 | 10.6 | 10.6 | % | 189 | 12.6 | % | 4,758 | 10.9 | % | 49 | 3.1 | % | 319 | 210 | |||
| Worldwide | 761 | 12.1 | 16.8 | % | 407 | 21.3 | % | 13,239 | 25.0 | % | 354 | 11.9 | % | 3,159 | 1,131 | |||
| For the 12 Months ended December 31, 2018 | ||||||||||||||||||
| GDV (Bil.) | Growth () | Growth (Local) | Purchase Volume (Bil.) | Growth (Local) | Purchase Trans. (Mil.) | Purchase Trans. Growth | Cash Volume (Bil.) | Growth (Local) | Cash Trans. (Mil.) | Cards (Mil.) | ||||||||
| All Mastercard Credit, Charge and Debit Programs | ||||||||||||||||||
| APMEA | $ | 1,800 | 12.9 | 12.8 | % | $ | 1,228 | 13.4 | % | 21,296 | 20.4 | % | $ | 573 | 11.7 | % | 6,112 | 791 |
| Canada | 173 | 10.1 | 10.2 | % | 166 | 10.3 | % | 2,538 | 12.6 | % | 7 | 6.6 | % | 24 | 61 | |||
| Europe | 1,738 | 17.8 | 19.2 | % | 1,148 | 22.6 | % | 29,978 | 29.9 | % | 591 | 13.2 | % | 4,157 | 528 | |||
| Latin America | 412 | 7.8 | 16.8 | % | 262 | 21.8 | % | 9,077 | 18.9 | % | 150 | 9.0 | % | 1,106 | 183 | |||
| Worldwide less United States | 4,124 | 14.2 | 15.7 | % | 2,803 | 17.6 | % | 62,890 | 24.1 | % | 1,321 | 12.0 | % | 11,400 | 1,563 | |||
| United States | 1,769 | 9.7 | 9.7 | % | 1,536 | 10.9 | % | 27,398 | 10.2 | % | 233 | 2.2 | % | 1,333 | 437 | |||
| Worldwide | 5,893 | 12.8 | 13.8 | % | 4,339 | 15.1 | % | 90,288 | 19.5 | % | 1,554 | 10.4 | % | 12,733 | 1,999 | |||
| Mastercard Credit and Charge Programs | ||||||||||||||||||
| Worldwide less United States | 2,168 | 10.8 | 12.2 | % | 2,009 | 13.2 | % | 32,974 | 15.8 | % | 159 | 1.4 | % | 719 | 641 | |||
| United States | 846 | 8.5 | 8.5 | % | 811 | 9.1 | % | 9,073 | 8.8 | % | 35 | (3.7 | )% | 34 | 227 | |||
| Worldwide | 3,014 | 10.2 | 11.2 | % | 2,819 | 12.0 | % | 42,047 | 14.2 | % | 195 | 0.5 | % | 753 | 868 | |||
| Mastercard Debit Programs | ||||||||||||||||||
| Worldwide less United States | 1,956 | 18.3 | 19.8 | % | 794 | 30.3 | % | 29,916 | 34.9 | % | 1,161 | 13.6 | % | 10,681 | 921 | |||
| United States | 923 | 10.8 | 10.8 | % | 725 | 13.0 | % | 18,325 | 10.9 | % | 197 | 3.3 | % | 1,299 | 210 | |||
| Worldwide | 2,879 | 15.8 | 16.8 | % | 1,520 | 21.4 | % | 48,240 | 24.6 | % | 1,359 | 12.0 | % | 11,980 | 1,131 | |||
| 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.<br><br>Effective Q1 2018, the company’s operational metrics reflect the impact of the Venezuela deconsolidation. |
All values are in US Dollars.
| 12 |
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Footnote
The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions and cards on a regional and global basis for Mastercard™-branded cards. Growth rates over prior periods are provided for volume-based data.
Debit transactions on Maestro® and Cirrus®-branded cards 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.
The Mastercard payment product is comprised of credit, charge, debit and prepaid programs, and data relating to each type of program is included in the tables. The tables include information with respect to transactions involving Mastercard-branded cards that are not switched 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 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 switching systems. The data set forth in the 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 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. All data is subject to revision and amendment by Mastercard or Mastercard’s customers.
Performance information for prior periods can be found in the Investor Relations section of the Mastercard website at investor.mastercard.com.
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