Mastercard Incorporated (NYSE:MA) Files An 8-K Results of Operations and Financial ConditionItem 2.02 Results of Operations and Financial Condition
On July27, 2017, Mastercard Incorporated (“Mastercard”) issued an earnings release announcing financial results for its second quarter 2017.
A copy of the earnings release is attached hereto as Exhibit 99.1. All information in the press release is furnished but not filed.
Non-GAAP Financial Information
In the attached press release, Mastercard discloses as non-GAAP financial measures adjusted operating expenses, adjusted net income and adjusted diluted earnings per share (as well as related applicable growth rates versus the comparable period in the prior year), adjusted operating margin and adjusted effective tax rate that each exclude the impact of the following:
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In the first quarter of 2017, Mastercard recorded a provision for litigation related to a litigation settlement with Canadian merchants (the “Canadian Merchant Litigation Provision”). |
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In the second quarter of 2016, Mastercard recorded a provision for litigation related to a judgment issued against the Company in a litigation with a merchant in the U.K. (the “U.K. Merchant Litigation Provision”). |
Mastercard excluded these litigation provisions because its management monitors material litigation judgments and settlements separately from ongoing operations and evaluates ongoing performance without these amounts. Mastercard’s management believes that the non-GAAP financial measures presented facilitate an understanding of Mastercard’s operating performance and meaningful comparison of its results between periods.
In the attached earnings release, management also presents growth rates on a currency-neutral basis, 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 foreign currency translation represents the effect of translating operating results where the functional currency is different than our U.S. dollar reporting currency. The impact of the transactional foreign currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency. Mastercard’s management believes the presentation of certain currency-neutral growth rates provides relevant information.
Mastercard’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 attached press release 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 Mastercard’s related financial results prepared in accordance with GAAP.
Item 2.02 Financial Statements and Exhibits
(d)Exhibits.
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Exhibit Number |
Exhibit Description |
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99.1 |
Earnings Release issued by Mastercard Incorporated, dated July 27, 2017 |
Mastercard Inc ExhibitEX-99.1 2 ma06302017-exx991xearnings.htm EXHIBIT 99.1 Exhibit Earnings Release Mastercard Incorporated Reports Second-Quarter 2017 Financial Results•Second-quarter net income of $1.2 billion,…To view the full exhibit click here
About Mastercard Incorporated (NYSE:MA)
MasterCard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world. The Company operates through payment solutions segment. The Company allows user to make payments by a range of payment solutions and services using various brands, which include MasterCard, Maestro and Cirrus. Its offerings include loyalty and reward programs, information services and consulting. It provides a range of products and solutions that support payment products that customers can offer to their cardholders. The Company’s services facilitate transactions on the MasterCard Network among cardholders, merchants, financial institutions and governments. The Company’s programs include consumer credit, commercial, and debit and prepaid. The Company’s offerings and platforms include premium, travel, purchasing and fleet cards and programs.
