Mastercard Inc 10-Q for FY2020 Q3

Mastercard Inc (MA)

10-Q 2020-10-28 For: 2020-09-30

Added on April 02, 2026

About this 10-Q

Mastercard Inc filed this 10-Q on October 28, 2020, covering the quarter ended September 30, 2020 (FY2020 Q3).

Headline figures

Quarter ended September 30, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $3.84B; down 14.1% from $4.47B a year earlier
Net income: $1.51B; down 28.2% from net income of $2.11B a year earlier
Diluted EPS: $1.51; down 27.1% from $2.07 a year earlier

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Delaware			13-4172551
(State or other jurisdiction of incorporation or organization)			(IRS Employer Identification Number)

2000 Purchase Street			10577
Purchase,	NY	(Zip Code)
(Address of principal executive offices)


						Page
Consolidated Statement of Operations — Three and Nine Months Ended September 30, 2020 and 2019						6
Consolidated Statement of Comprehensive Income — Three and Nine Months Ended September 30, 2020 and 2019						7
Consolidated Balance Sheet — September 30, 2020 and December 31, 2019						8
Consolidated Statement of Changes in Equity - Three and Nine Months Ended September 30, 2020 and 2019						9
Consolidated Statement of Cash Flows — Nine Months Ended September 30, 2020 and 2019						11
Notes to consolidated financial statements						12


Consolidated Statement of Operations (Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions, except per share data)
Net Revenue	$	3,837	$	4,467	$	11,181	$	12,469
Operating Expenses
General and administrative	1,423		1,448		4,285		4,184
Advertising and marketing	168		227		415		644
Depreciation and amortization	141		137		430		376
Provision for litigation	—		—		28		—
Total operating expenses	1,732		1,812		5,158		5,204
Operating income	2,105		2,655		6,023		7,265
Other Income (Expense)
Investment income	3		26		27		77
Gains (losses) on equity investments, net	(91)		(100)		(190)		48
Interest expense	(105)		(63)		(275)		(160)
Other income (expense), net	3		16		7		26
Total other income (expense)	(190)		(121)		(431)		(9)
Income before income taxes	1,915		2,534		5,592		7,256
Income tax expense	402		426		966		1,238
Net Income	$	1,513	$	2,108	$	4,626	$	6,018
Basic Earnings per Share	$	1.51	$	2.08	$	4.61	$	5.90
Basic weighted-average shares outstanding	1,001		1,013		1,003		1,020
Diluted Earnings per Share	$	1.51	$	2.07	$	4.59	$	5.87
Diluted weighted-average shares outstanding	1,005		1,019		1,008		1,025


Consolidated Statement of Comprehensive Income (Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Net Income	$	1,513	$	2,108	$	4,626	$	6,018
Other comprehensive income (loss):
Foreign currency translation adjustments	228		(193)		(17)		(216)
Income tax effect	(8)		9		21		12
Foreign currency translation adjustments, net of income tax effect	220		(184)		4		(204)
Translation adjustments on net investment hedge	(73)		72		(82)		80
Income tax effect	16		(16)		18		(18)
Translation adjustments on net investment hedge, net of income tax effect	(57)		56		(64)		62
Cash flow hedges	2		—		(186)		—
Income tax effect	(1)		—		41		—
Cash flow hedges, net of income tax effect	1		—		(145)		—
Defined benefit pension and other postretirement plans	—		—		(1)		(1)
Income tax effect	—		—		—		—
Defined benefit pension and other postretirement plans, net of income tax effect	—		—		(1)		(1)
Investment securities available-for-sale	2		—		(1)		4
Income tax effect	—		—		—		(1)
Investment securities available-for-sale, net of income tax effect	2		—		(1)		3
Other comprehensive income (loss), net of tax	166		(128)		(207)		(140)
Comprehensive Income	$	1,679	$	1,980	$	4,419	$	5,878


Consolidated Balance Sheet (unaudited)
	September 30, 2020		December 31, 2019
	(in millions, except per share data)
Assets
Current assets:
Cash and cash equivalents	$	10,225	$	6,988
Restricted cash for litigation settlement	586		584
Investments	400		688
Accounts receivable	2,357		2,514
Settlement due from customers	1,375		2,995
Restricted security deposits held for customers	1,568		1,370
Prepaid expenses and other current assets	1,958		1,763
Total current assets	18,469		16,902
Property, equipment and right-of-use assets, net of accumulated depreciation and amortization of $1,298 and $1,100, respectively	1,887		1,828
Deferred income taxes	607		543
Goodwill	4,159		4,021
Other intangible assets, net of accumulated amortization of $1,416 and $1,296, respectively	1,507		1,417
Other assets	4,965		4,525
Total Assets	$	31,594	$	29,236
Liabilities, Redeemable Non-controlling Interests and Equity
Current liabilities:
Accounts payable	$	341	$	489
Settlement due to customers	1,129		2,714
Restricted security deposits held for customers	1,568		1,370
Accrued litigation	798		914
Accrued expenses	5,011		5,489
Other current liabilities	1,111		928
Total current liabilities	9,958		11,904
Long-term debt	12,574		8,527
Deferred income taxes	86		85
Other liabilities	3,095		2,729
Total Liabilities	25,713		23,245
Commitments and Contingencies
Redeemable Non-controlling Interests	25		74
Stockholders’ Equity
Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,395 and 1,391 shares issued and 990 and 996 shares outstanding, respectively	—		—
Class B common stock, $0.0001 par value; authorized 1,200 shares, 8 and 11 shares issued and outstanding, respectively	—		—
Additional paid-in-capital	4,926		4,787
Class A treasury stock, at cost, 406 and 395 shares, respectively	(35,653)		(32,205)
Retained earnings	37,403		33,984
Accumulated other comprehensive income (loss)	(880)		(673)
Mastercard Incorporated Stockholders' Equity	5,796		5,893
Non-controlling interests	60		24
Total Equity	5,856		5,917
Total Liabilities, Redeemable Non-controlling Interests and Equity	$	31,594	$	29,236


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Consolidated Statement of Changes in Equity (Unaudited)
	Three Months Ended September 30, 2020
	Stockholders’ Equity
	Common Stock						Additional Paid-In Capital		Class A Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Mastercard Incorporated Stockholders’ Equity		Non- Controlling Interests		Total Equity
	Class A		Class B
	(in millions)
















Balance at June 30, 2020	$	—	$	—	$	4,832	$	(33,604)	$	36,288	$	(1,046)	$	6,470	$	28	$	6,498
Net income	—		—		—		—		1,513		—		1,513		—		1,513
Activity related to non-controlling interests	—		—		—		—		—		—		—		32		32
Redeemable non-controlling interest adjustments	—		—		—		—		—		—		—		—		—
Other comprehensive income (loss)	—		—		—		—		—		166		166		—		166
Dividends	—		—		—		—		(398)		—		(398)		—		(398)
Purchases of treasury stock	—		—		—		(2,049)		—		—		(2,049)		—		(2,049)
Share-based payments	—		—		94		—		—		—		94		—		94
Balance at September 30, 2020	$	—	$	—	$	4,926	$	(35,653)	$	37,403	$	(880)	$	5,796	$	60	$	5,856


	Nine Months Ended September 30, 2020
	Stockholders’ Equity
	Common Stock						Additional Paid-In Capital		Class A Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Mastercard Incorporated Stockholders' Equity		Non- Controlling Interests		Total Equity
	Class A		Class B
	(in millions)
Balance at December 31, 2019	$	—	$	—	$	4,787	$	(32,205)	$	33,984	$	(673)	$	5,893	$	24	$	5,917
Net income	—		—		—		—		4,626		—		4,626		—		4,626
Activity related to non-controlling interests	—		—		—		—		—		—		—		36		36
Redeemable non-controlling interest adjustments	—		—		—		—		(5)		—		(5)		—		(5)
Other comprehensive income (loss)	—		—		—		—		—		(207)		(207)		—		(207)
Dividends	—		—		—		—		(1,202)		—		(1,202)		—		(1,202)
Purchases of treasury stock	—		—		—		(3,454)		—		—		(3,454)		—		(3,454)
Share-based payments	—		—		139		6		—		—		145		—		145
Balance at September 30, 2020	$	—	$	—	$	4,926	$	(35,653)	$	37,403	$	(880)	$	5,796	$	60	$	5,856


Consolidated Statement of Changes in Equity (Unaudited) - (Continued)
	Three Months Ended September 30, 2019
	Stockholders’ Equity
	Common Stock						Additional Paid-In Capital		Class A Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Mastercard Incorporated Stockholders’ Equity		Non- Controlling Interests		Total Equity
	Class A		Class B
	(in millions)
Balance at June 30, 2019	$	—	$	—	$	4,675	$	(29,454)	$	30,517	$	(730)	$	5,008	$	27	$	5,035
Net income	—		—		—		—		2,108		—		2,108		—		2,108
Activity related to non-controlling interests	—		—		—		—		—		—		—		(1)		(1)
Redeemable non-controlling interest adjustments	—		—		—		—		(2)		—		(2)		—		(2)
Other comprehensive income (loss)	—		—		—		—		—		(128)		(128)		—		(128)
Dividends	—		—		—		—		(334)		—		(334)		—		(334)
Purchases of treasury stock	—		—		—		(1,755)		—		—		(1,755)		—		(1,755)
Share-based payments	—		—		50		2		—		—		52		—		52
Balance at September 30, 2019	$	—	$	—	$	4,725	$	(31,207)	$	32,289	$	(858)	$	4,949	$	26	$	4,975


	Nine Months Ended September 30, 2019
	Stockholders’ Equity
	Common Stock						Additional Paid-In Capital		Class A Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Mastercard Incorporated Stockholders' Equity		Non- Controlling Interests		Total Equity
	Class A		Class B
	(in millions)
Balance at December 31, 2018	$	—	$	—	$	4,580	$	(25,750)	$	27,283	$	(718)	$	5,395	$	23	$	5,418
Net income	—		—		—		—		6,018		—		6,018		—		6,018
Activity related to non-controlling interests	—		—		—		—		—		—		—		3		3
Redeemable non-controlling interest adjustments	—		—		—		—		(6)		—		(6)		—		(6)
Other comprehensive income (loss)	—		—		—		—		—		(140)		(140)		—		(140)
Dividends	—		—		—		—		(1,006)		—		(1,006)		—		(1,006)
Purchases of treasury stock	—		—		—		(5,465)		—		—		(5,465)		—		(5,465)
Share-based payments	—		—		145		8		—		—		153		—		153
Balance at September 30, 2019	$	—	$	—	$	4,725	$	(31,207)	$	32,289	$	(858)	$	4,949	$	26	$	4,975


Consolidated Statement of Cash Flows (Unaudited)
	Nine Months Ended September 30,
	2020		2019
	(in millions)
Operating Activities
Net income	$	4,626	$	6,018
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of customer and merchant incentives	749		878
Depreciation and amortization	430		376
(Gains) losses on equity investments, net	190		(48)
Share-based compensation	202		207
Deferred income taxes	7		14
Other	15		21
Changes in operating assets and liabilities:
Accounts receivable	112		(278)

Settlement due from customers	1,618		(171)
Prepaid expenses	(1,291)		(1,440)
Accrued litigation and legal settlements	(116)		(637)
Restricted security deposits held for customers	198		93
Accounts payable	(145)		(36)
Settlement due to customers	(1,587)		(77)

Accrued expenses	(399)		266
Net change in other assets and liabilities	362		17
Net cash provided by operating activities	4,971		5,203
Investing Activities
Purchases of investment securities available-for-sale	(161)		(549)
Purchases of investments held-to-maturity	(126)		(167)
Proceeds from sales of investment securities available-for-sale	349		1,003
Proceeds from maturities of investment securities available-for-sale	127		305
Proceeds from maturities of investments held-to-maturity	84		334
Purchases of property and equipment	(280)		(306)
Capitalized software	(277)		(237)
Purchases of equity investments	(183)		(391)
Acquisition of businesses, net of cash acquired	(183)		(1,170)
Settlement of interest rate derivative contracts	(175)		—
Other investing activities	—		(2)
Net cash used in investing activities	(825)		(1,180)
Financing Activities
Purchases of treasury stock	(3,443)		(5,503)
Dividends paid	(1,206)		(1,012)
Proceeds from debt, net	3,959		1,980
Payment of debt	—		(500)
Acquisition of redeemable non-controlling interests	(49)		—
Contingent consideration paid	—		(199)
Tax withholdings related to share-based payments	(145)		(161)
Cash proceeds from exercise of stock options	88		107
Other financing activities	19		3
Net cash used in financing activities	(777)		(5,285)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	66		(103)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	3,435		(1,365)
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period	8,969		8,337
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period	$	12,404	$	6,972


	December 31,
	2019		2018
	(in millions)
Cash and cash equivalents	$	6,988	$	6,682
Restricted cash and restricted cash equivalents
Restricted cash for litigation settlement	584		553
Restricted security deposits held for customers	1,370		1,080
Prepaid expenses and other current assets	27		22

Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period	$	8,969	$	8,337

	September 30,
	2020		2019
	(in millions)
Cash and cash equivalents	$	10,225	$	5,101
Restricted cash and restricted cash equivalents
Restricted cash for litigation settlement	586		666
Restricted security deposits held for customers	1,568		1,173
Prepaid expenses and other current assets	25		32

Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period	$	12,404	$	6,972


	September 30, 2020		December 31, 2019
	(in millions)
Available-for-sale securities	$	281	$	591
Held-to-maturity securities	119		97
Total investments	$	400	$	688


	September 30, 2020														December 31, 2019
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(in millions)
Municipal securities	$	6	$	—	$	—	$	6	$	15	$	—	$	—	$	15
Government and agency securities	47		—		—		47		108		—		—		108
Corporate securities	227		1		—		228		381		1		—		382
Asset-backed securities	—		—		—		—		85		1		—		86
Total	$	280	$	1	$	—	$	281	$	589	$	2	$	—	$	591


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Revenue by source:
Domestic assessments	$	1,750	$	1,722	$	4,907	$	5,007
Cross-border volume fees	791		1,517		2,645		4,154
Transaction processing	2,251		2,231		6,352		6,206
Other revenues	1,143		1,087		3,286		2,891
Gross revenue	5,935		6,557		17,190		18,258
Rebates and incentives (contra-revenue)	(2,098)		(2,090)		(6,009)		(5,789)
Net revenue	$	3,837	$	4,467	$	11,181	$	12,469
Net revenue by geographic region:
North American Markets	$	1,381	$	1,545	$	3,958	$	4,333
International Markets	2,419		2,877		7,094		8,013
Other ¹	37		45		129		123
Net revenue	$	3,837	$	4,467	$	11,181	$	12,469


				September 30, 2020		December 31, 2019		Effective Interest Rate
				(in millions)
2020 USD Notes	3.300	%	Senior Notes due March 2027	$	1,000	$	—	3.420		%
	3.350	%	Senior Notes due March 2030	1,500		—		3.430		%
	3.850	%	Senior Notes due March 2050	1,500		—		3.896		%

2019 USD Notes	2.950	%	Senior Notes due June 2029	1,000		1,000		3.030		%
	3.650	%	Senior Notes due June 2049	1,000		1,000		3.689		%
	2.000	%	Senior Notes due March 2025	750		750		2.147		%

2018 USD Notes	3.500	%	Senior Notes due February 2028	500		500		3.598		%
	3.950	%	Senior Notes due February 2048	500		500		3.990		%

2016 USD Notes	2.000	%	Senior Notes due November 2021	650		650		2.236		%
	2.950	%	Senior Notes due November 2026	750		750		3.044		%
	3.800	%	Senior Notes due November 2046	600		600		3.893		%

2015 Euro Notes ¹	1.100	%	Senior Notes due December 2022	819		785		1.265		%
	2.100	%	Senior Notes due December 2027	936		896		2.189		%
	2.500	%	Senior Notes due December 2030	175		169		2.562		%

2014 USD Notes	3.375	%	Senior Notes due April 2024	1,000		1,000		3.484		%

				12,680		8,600
Less: Unamortized discount and debt issuance costs								(106)			(73)


Long-term debt								$	12,574		$	8,527


Board authorization dates	December 2019		December 2018		December 2017
Date program became effective	January 2020		January 2019		March 2018		Total
	(in millions, except average price data)
Board authorization	$	8,000	$	6,500	$	4,000	$	18,500
Dollar value of shares repurchased during the nine months ended September 30, 2019	$	—	$	5,202	$	301	$	5,503
Remaining authorization at December 31, 2019	$	8,000	$	304	$	—	$	8,304
Dollar value of shares repurchased during the nine months ended September 30, 2020	$	3,139	$	304	$	—	$	3,443
Remaining authorization at September 30, 2020	$	4,861	$	—	$	—	$	4,861
Shares repurchased during the nine months ended September 30, 2019	—		21.2		1.6		22.8
Average price paid per share during the nine months ended September 30, 2019	$	—	$	245.25	$	188.38	$	241.27
Shares repurchased during the nine months ended September 30, 2020	10.2		1.0		—		11.2
Average price paid per share during the nine months ended September 30, 2020	$	308.04	$	304.89	$	—	$	307.76
Cumulative shares repurchased through September 30, 2020	10.2		25.8		20.6		56.6
Cumulative average price paid per share	$	308.04	$	251.72	$	194.27	$	240.96


	Grants in 2020	Weighted-Average Grant-Date Fair Value
	(in millions)	(per option/unit)
Non-qualified stock options	0.4	$55
Restricted stock units	0.9	$286
Performance stock units	0.2	$291


	Available-For-Sale
	Amortized Cost		Fair Value
	(in millions)
Due within 1 year	$	83	$	83
Due after 1 year through 5 years	197		198

Total	$	280	$	281


	Balance at December 31, 2019		Purchases (Sales), net		Changes in Fair Value ¹		Other ²		Balance at September 30, 2020
	(in millions)
Marketable securities	$	479	$	—	$	(193)	$	(7)	$	279
Nonmarketable securities	435		179		3		17		634
Total equity investments	$	914	$	179	$	(190)	$	10	$	913


	September 30, 2020														December 31, 2019
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in millions)
Assets
Investment securities available for sale ¹:
Municipal securities	$	—	$	6	$	—	$	6	$	—	$	15	$	—	$	15
Government and agency securities	18		29		—		47		66		42		—		108
Corporate securities	—		228		—		228		—		382		—		382
Asset-backed securities	—		—		—		—		—		86		—		86

Derivative instruments ²:
Foreign exchange contracts	—		40		—		40		—		12		—		12
Interest rate contracts	—		—		—		—		—		14		—		14
Marketable securities ³:
Equity securities	279		—		—		279		479		—		—		479
Deferred compensation plan ⁴:
Deferred compensation assets	72		—		—		72		67		—		—		67

Liabilities
Derivative instruments ²:
Foreign exchange derivative liabilities	$	—	$	(19)	$	—	$	(19)	$	—	$	(32)	$	—	$	(32)

Deferred compensation plan ⁵:
Deferred compensation liabilities	(73)		—		—		(73)		(67)		—		—		(67)


	Outstanding Shares
	Class A	Class B
	(in millions)
Balance at December 31, 2019	996.0	11.2
Purchases of treasury stock	(11.2)	—
Share-based payments	2.1	—
Conversion of Class B to Class A common stock	2.7	(2.7)
Balance at September 30, 2020	989.6	8.5


	Foreign Currency Translation Adjustments ¹		Translation Adjustments on Net Investment Hedge ²		Cash Flow Hedges ³		Defined Benefit Pension and Other Postretirement Plans		Investment Securities Available-for-Sale ⁴		Accumulated Other Comprehensive Income (Loss)
	(in millions)
Balance at December 31, 2019	$	(638)	$	(38)	$	11	$	(9)	$	1	$	(673)
Other comprehensive income (loss)	4		(64)		(145)		(1)		(1)		(207)
Balance at September 30, 2020	$	(634)	$	(102)	$	(134)	$	(10)	$	—	$	(880)

Balance at December 31, 2018	$	(661)	$	(66)	$	—	$	10	$	(1)	$	(718)
Other comprehensive income (loss)	(204)		62		—		(1)		3		(140)
Balance at September 30, 2019	$	(865)	$	(4)	$	—	$	9	$	2	$	(858)


	September 30, 2020						December 31, 2019
	Notional		Estimated Fair Value		Notional		Estimated Fair Value
	(in millions)
Commitments to purchase foreign currency	$	600	$	15	$	185	$	3
Commitments to sell foreign currency	1,439		6		1,506		(25)
Options to sell foreign currency	—		—		21		2
Balance sheet location
Prepaid expenses and other current assets ¹			40				12
Other current liabilities ¹			(19)				(32)


	Three Months Ended September 30,							Increase/(Decrease)				Nine Months Ended September 30,					Increase/(Decrease)
	2020			2019							2020				2019
	($ in millions, except per share data)
Net revenue	$	3,837		$	4,467		(14)%	$	11,181			$	12,469			(10)%
Operating expenses	$	1,732		$	1,812		(4)%	$	5,158			$	5,204			(1)%
Operating income	$	2,105		$	2,655		(21)%	$	6,023			$	7,265			(17)%
Operating margin	54.9		%	59.4		%	(4.6) ppt	53.9		%		58.3		%		(4.4) ppt
Income tax expense	$	402		$	426		(6)%	$	966			$	1,238			(22)%
Effective income tax rate	21.0		%	16.9		%	4.1 ppt	17.3		%		17.1		%		0.2 ppt
Net income	$	1,513		$	2,108		(28)%	$	4,626			$	6,018			(23)%
Diluted earnings per share	$	1.51		$	2.07		(27)%	$	4.59			$	5.87			(22)%
Diluted weighted-average shares outstanding	1,005			1,019			(1)%	1,008				1,025				(2)%



	Three Months Ended September 30, 2020 as compared to the Three Months Ended September 30, 2019
	Increase/(Decrease)
	Net revenue	Operating expenses	Operating margin	Effective income tax rate	Net income	Diluted earnings per share
Reported - GAAP	(14)%	(4)%	(4.6) ppt	4.1 ppt	(28)%	(27)%
(Gains) losses on equity investments	**	**	**	(0.9) ppt	1%	1%

Non-GAAP	(14)%	(4)%	(4.6) ppt	3.2 ppt	(27)%	(26)%
Currency impact ¹	—%	—%	0.3 ppt	0.1 ppt	1%	1%
Non-GAAP - currency-neutral	(14)%	(5)%	(4.2) ppt	3.3 ppt	(26)%	(25)%


	Nine Months Ended September 30, 2020 as compared to the Nine Months Ended September 30, 2019
	Increase/(Decrease)
	Net revenue	Operating expenses	Operating margin	Effective income tax rate	Net income	Diluted earnings per share
Reported - GAAP	(10)%	(1)%	(4.4) ppt	0.2 ppt	(23)%	(22)%
(Gains) losses on equity investments	**	**	**	(0.1) ppt	3%	3%
Litigation provisions	**	(1)%	0.3 ppt	— ppt	—%	—%
Tax act	**	**	**	(0.4) ppt	—%	—%
Non-GAAP	(10)%	(1)%	(4.1) ppt	(0.3) ppt	(19)%	(18)%
Currency impact ¹	1%	1%	0.3 ppt	0.2 ppt	2%	2%
Non-GAAP - currency-neutral	(9)%	(1)%	(3.8) ppt	(0.1) ppt	(18)%	(16)%


	Three Months Ended September 30,					Increase (Decrease)				Nine Months Ended September 30,				Increase (Decrease)
	2020		2019						2020			2019
	($ in millions)
Domestic assessments	$	1,750	$	1,722	2%		$	4,907		$	5,007		(2)%
Cross-border volume fees	791		1,517		(48)%		2,645			4,154			(36)%
Transaction processing	2,251		2,231		1%		6,352			6,206			2%
Other revenues	1,143		1,087		5%		3,286			2,891			14%
Gross revenue	5,935		6,557		(9)%		17,190			18,258			(6)%
Rebates and incentives (contra-revenue)	(2,098)		(2,090)		—%		(6,009)			(5,789)			4%
Net revenue	$	3,837	$	4,467	(14)%		$	11,181		$	12,469		(10)%



	Three Months Ended September 30, 2020
	Volume					Acquisitions			Currency Impact ¹			Other ²			Total
Domestic assessments	1	%		—	%		(3)	%		4	%	3	2	%
Cross-border volume fees	(36)	%		—	%		—	%		(12)	%		(48)	%
Transaction processing	5	%		—	%		—	%		(4)	%		1	%
Other revenues	**			2	%		—	%		4	%	4	5	%
Rebates and incentives (contra-revenue)	(9)	%	5	—	%		(1)	%		10	%	6	—	%
Net revenue	(6)	%		1	%		—	%		(9)	%		(14)	%



	Three Months Ended September 30, 2020
	Operational	Special Items ¹	Acquisitions	Currency Impact ²	Total
General and administrative	(6)%	**	4%	—%	(2)%
Advertising and marketing	(25)%	**	—%	—%	(26)%
Depreciation and amortization	(1)%	**	3%	1%	3%
Provision for litigation	**	**	**	**	**
Total operating expenses	(8)%	**	3%	—%	(4)%


	September 30, 2020		December 31, 2019
	(in billions)
Cash, cash equivalents and investments ¹	$	10.6	$	7.7
Unused line of credit	6.0		6.0


Period	Total Number of Shares Purchased	Average Price Paid per Share (including commission cost)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Dollar Value of Shares that may yet be Purchased under the Plans or Programs ¹
July 1 - 31	3,468,650	$	302.71	3,468,650	$	5,870,512,989
August 1 - 31	1,540,748	$	330.88	1,540,748	$	5,360,716,624
September 1 - 30	1,468,424	$	340.07	1,468,424	$	4,861,351,238
Total	6,477,822	$	317.88	6,477,822


Exhibit Number						Exhibit Description
31.1*						Certification of Ajay Banga, Chief Executive Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*						Certification of Sachin Mehra, Chief Financial Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*						Certification of Ajay Banga, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*						Certification of Sachin Mehra, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1*						Disclosure pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012.
101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*						XBRL Taxonomy Extension Schema Document
101.CAL*						XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*						XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*						XBRL Taxonomy Extension Label Linkbase Document
101.PRE*						XBRL Taxonomy Extension Presentation Linkbase Document