MA MasterCard Incorporated

• Fourth-quarter net income of $890 million, or $0.79 per diluted share
• Fourth-quarter net revenue increase of 4%, to $2.5 billion
• Fourth-quarter gross dollar volume up 12% and purchase volume up 12%

MasterCard Incorporated (NYSE:MA) today announced financial results for the fourth quarter of 2015. The company reported net income of $890 million, an increase of 11%, or 18% after adjusting for currency, and earnings per diluted share of $0.79, up 14%, or 22% when adjusted for currency, versus the year-ago period. Acquisitions had a $0.03 dilutive impact on earnings per diluted share in the quarter.

Net revenue for the fourth quarter of 2015 was $2.5 billion, a 4% increase versus the same period in 2014. Adjusted for currency, net revenue increased 9%. Net revenue growth was driven by the impact of the following:

• A 12% increase in gross dollar volume, on a local currency basis, to $1.2 trillion;
• An increase in processed transactions of 12%, to 13.0 billion; and
• An increase in cross-border volumes of 12%.

These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes. Acquisitions contributed 2 percentage points to total net revenue growth.

Worldwide purchase volume during the quarter was up 12% on a local currency basis versus the fourth quarter of 2014, to $883 billion. As of December 31, 2015, the company’s customers had issued 2.3 billion MasterCard and Maestro-branded cards.

“Despite a challenging economy, we were able to deliver solid results for the quarter and the full year in 2015,” said Ajay Banga, president and CEO, MasterCard. “Entering 2016, while uncertainty in the global economy persists, the fundamentals of our business and our approach remain unchanged. We continue to be laser focused on our strategy to lead payment innovation in an increasingly digital world with solutions such as MasterPass, while growing the use of electronic payments through our products, partnerships and increased acceptance at the point-of-sale.”

Total operating expenses increased 1%, or 4% when adjusted for currency, to $1.4 billion during the fourth quarter of 2015 compared to the same period in 2014. The increase was primarily due to continued investments to support strategic initiatives, as well as the impact of acquisitions, which contributed 4 percentage points of the FX-adjusted growth, partially offset by ongoing cost management initiatives.

Operating income for the fourth quarter of 2015 increased 9%, or 17% adjusted for currency, versus the year-ago period. The company delivered an operating margin of 44.0%.

MasterCard reported other expense of $82 million in the fourth quarter of 2015 versus $11 million in the fourth quarter of 2014. The change was mainly driven by impairment charges on certain investments and by higher interest expense related to the company’s Euro debt offering in November 2015, partially offset by tax reserve adjustments and investment gains.

MasterCard’s effective tax rate was 13.1% in the fourth quarter of 2015, versus a rate of 20.3% in the comparable period in 2014. The decrease was primarily due to the recognition of discrete tax benefits in the fourth quarter of 2015 resulting from the impact of settlements with tax authorities during the quarter.

During the fourth quarter of 2015, MasterCard repurchased approximately 8 million shares of Class A common stock at a cost of $793 million. Quarter-to-date through January 22nd, the company repurchased an additional 3.1 million shares at a cost of $283 million, with $4.2 billion remaining under current repurchase program authorizations.

Full-Year 2015 Results

For the full-year 2015, excluding special items, MasterCard reported net income of $3.9 billion, an increase of 8%, or 15% after adjusting for currency, versus the year-ago period and earnings per diluted share of $3.43, up 11%, or 18% after adjusting for currency compared to the same period in 2014. The special items included after-tax charges of $44 million related to a U.K. merchant litigation settlement and $50 million related to the termination of the U.S. employee pension plan, recorded in the second and third quarters of 2015, respectively. Including the special items, net income was $3.8 billion and earnings per diluted share was $3.35. Acquisitions had an $0.11 dilutive impact on earnings per diluted share in the full-year period.

Net revenue for the full-year 2015 was $9.7 billion, an increase of 2%, or 8% after adjusting for currency, versus the same period in 2014. Gross dollar volume growth of 13%, transaction processing growth of 12% and cross-border volume growth of 16% contributed to the net revenue growth in the full-year period. These factors were partially offset by an increase in rebates and incentives. Acquisitions contributed 2 percentage points to total net revenue growth.

Excluding the special items, total operating expenses increased 3%, or 6% after adjusting for currency, to $4.4 billion for the full-year 2015, compared to the same period in 2014. The increase was primarily due to continued investments to support strategic initiatives as well as the impact of acquisitions, which contributed 6 percentage points of the FX-adjusted growth, partially offset by ongoing cost management initiatives and foreign exchange gains. Including the special items, total operating expenses increased 6%, or 10% after adjusting for currency, from the year-ago period.

Excluding the special items, operating income was $5.2 billion, an increase of 2% for full-year 2015 versus the same period in 2014, or an increase of 10% after adjusting for currency. The company delivered an operating margin of 54.0%.

MasterCard reported other expense of $120 million for the full-year 2015 versus $27 million compared to the same period in 2014. The change was mainly driven by impairment charges on certain investments and by higher interest expense resulting from debt issued in 2014 and 2015.

MasterCard’s effective tax rate was 23.4% for full-year 2015 versus a rate of 28.8% in the same period in 2014, excluding the special items. The decrease was primarily due to the recognition of discrete tax benefits in 2015 resulting from the impact of settlements with tax authorities, the recognition of a U.S. foreign tax credit and a more favorable geographic mix of taxable earnings.

Fourth-Quarter Financial Results Conference Call Details

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

The dial-in information for this call is 866-393-4306 (within the U.S.) and 734-385-2616 (outside the U.S.), and the passcode is 12827852. A replay of the call will be available for 30 days and can be accessed by dialing 855-859-2056 (within the U.S.) and 404-537-3406 (outside the U.S.), and using passcode 12827852.

This call can also be accessed through the Investor Relations section of the company’s website at www.mastercard.com/investor.

Non-GAAP Financial Information

The company has presented certain financial data that are considered non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying tables.

The presentation of growth rates adjusted for currency represent a non-GAAP measure and are calculated by remeasuring the prior period’s results using the current period’s exchange rates.

About MasterCard Incorporated

MasterCard (NYSE:MA), www.mastercard.com, is a technology company in the global payments industry. We operate 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 Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.

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 our business performance and the execution of our strategy to lead payment innovation and grow electronic payments use.

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, 2014, and subsequent reports on Forms 10-Q and 8-K, 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.

 

MASTERCARD INCORPORATED

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)

     

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2015   2014 2015   2014 (in millions, except per share data) Net Revenue $ 2,517 $ 2,411 $ 9,667 $ 9,441 Operating Expenses General and administrative 998 972 3,341 3,152 Advertising and marketing 319 337 821 862 Depreciation and amortization 93 84 366 321 Provision for litigation settlement —   —   61   —   Total operating expenses 1,410   1,393   4,589   4,335   Operating income 1,107 1,018 5,078 5,106 Other Income (Expense) Investment income 5 7 25 28 Interest expense (12 ) (16 ) (61 ) (48 ) Other income (expense), net (75 ) (2 ) (84 ) (7 ) Total other income (expense) (82 ) (11 ) (120 ) (27 ) Income before income taxes 1,025 1,007 4,958 5,079 Income tax expense 135   206   1,150   1,462   Net Income $ 890   $ 801   $ 3,808   $ 3,617     Basic Earnings per Share $ 0.79   $ 0.70   $ 3.36   $ 3.11   Basic Weighted-Average Shares Outstanding 1,121   1,153   1,134   1,165   Diluted Earnings per Share $ 0.79   $ 0.69   $ 3.35   $ 3.10   Diluted Weighted-Average Shares Outstanding 1,124   1,157   1,137   1,169      

MASTERCARD INCORPORATED

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

  December 31, 2015   2014 (in millions, except per share data) ASSETS Cash and cash equivalents $ 5,747 $ 5,137 Restricted cash for litigation settlement 541 540 Investments 991 1,238 Accounts receivable 1,079 1,109 Settlement due from customers 1,068 1,052 Restricted security deposits held for customers 895 950 Prepaid expenses and other current assets 664 671 Deferred income taxes —   300   Total Current Assets 10,985 10,997 Property, plant and equipment, net 675 615 Deferred income taxes 317 96 Goodwill 1,891 1,522 Other intangible assets, net 803 714 Other assets 1,598   1,385   Total Assets $ 16,269   $ 15,329   LIABILITIES AND EQUITY Accounts payable $ 472 $ 419 Settlement due to customers 866 1,142 Restricted security deposits held for customers 895 950 Accrued litigation 709 771 Accrued expenses 2,763 2,439 Other current liabilities 564   501   Total Current Liabilities 6,269 6,222 Long-term debt 3,287 1,494 Deferred income taxes 79 115 Other liabilities 572   674   Total Liabilities 10,207 8,505 Commitments and Contingencies Stockholders’ Equity Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,370 and 1,352 shares issued and 1,095 and 1,115 outstanding, respectively — — Class B common stock, $0.0001 par value; authorized 1,200 shares, 21 and 37 issued and outstanding, respectively — — Additional paid-in-capital 4,004 3,876 Class A treasury stock, at cost, 275 and 237 shares, respectively (13,522 ) (9,995 ) Retained earnings 16,222 13,169 Accumulated other comprehensive income (loss) (676 ) (260 ) Total Stockholders’ Equity 6,028 6,790 Non-controlling interests 34   34   Total Equity 6,062   6,824   Total Liabilities and Equity $ 16,269   $ 15,329      

MASTERCARD INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

  For the Years Ended December 31, 2015   2014   2013 (in millions) Operating Activities Net income $ 3,808 $ 3,617 $ 3,116 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of customer and merchant incentives 764 691 603 Depreciation and amortization 366 321 258 Share-based payments 22 (15 ) 63 Deferred income taxes (16 ) (91 ) (119 ) Other (81 ) 52 67 Changes in operating assets and liabilities: Accounts receivable (35 ) (164 ) (42 ) Income taxes receivable (14 ) (8 ) 153 Settlement due from customers (98 ) 185 (194 ) Prepaid expenses (802 ) (1,316 ) (598 ) Accrued litigation and legal settlements (63 ) (115 ) 160 Accounts payable 49 61 (20 ) Settlement due to customers (186 ) (165 ) 322 Accrued expenses 325 389 315 Net change in other assets and liabilities 4   (35 ) 51   Net cash provided by operating activities 4,043   3,407   4,135   Investing Activities Purchases of investment securities available-for-sale (974 ) (2,385 ) (2,526 ) Purchases of other short-term investments held-to-maturity (918 ) — — Proceeds from sales of investment securities available-for-sale 703 2,477 1,488 Proceeds from maturities of investment securities available-for-sale 542 1,358 1,321 Proceeds from maturities of investment securities held-to-maturity 857 — 36 Purchases of property, plant and equipment (177 ) (175 ) (155 ) Capitalized software (165 ) (159 ) (144 ) Acquisition of businesses, net of cash acquired (584 ) (525 ) — (Increase) decrease in restricted cash for litigation settlement (1 ) 183 3 Other investing activities 2   (84 ) (27 ) Net cash (used in) provided by investing activities (715 ) 690   (4 ) Financing Activities Purchases of treasury stock (3,518 ) (3,386 ) (2,443 ) Proceeds from debt 1,735 1,530 35 Dividends paid (727 ) (515 ) (255 ) Tax benefit for share-based payments 42 54 19 Cash proceeds from exercise of stock options 27 28 26 Other financing activities (17 ) (50 ) (11 ) Net cash used in financing activities (2,458 ) (2,339 ) (2,629 ) Effect of exchange rate changes on cash and cash equivalents (260 ) (220 ) 45   Net increase in cash and cash equivalents 610 1,538 1,547 Cash and cash equivalents - beginning of period 5,137   3,599   2,052   Cash and cash equivalents - end of period $ 5,747   $ 5,137   $ 3,599     Non-Cash Investing and Financing Activities Fair value of assets acquired, net of cash acquired $ 626   $ 768   $ —   Fair value of liabilities assumed related to acquisitions $ 42   $ 141   $ —      

MASTERCARD INCORPORATED OPERATING PERFORMANCE

  For the 3 Months ended December 31, 2015 All MasterCard Credit, GDV   Growth   Growth  

Purchase

Volume

  Growth  

Purchase

Trans.

  Cash

Volume

  Growth  

Cash

Trans.

  Accounts   Cards Charge and Debit Programs (Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.) APMEA $363 4.5% 13.7% $245 13.3% 3,324 $118 14.5% 1,214 520 555 Canada 34 -3.2% 13.8% 33 14.5% 487 2 1.1% 6 43 49 Europe 341 -1.3% 15.1% 234 13.5% 4,933 108 18.8% 824 393 410 Latin America 83 -14.6% 15.2% 47 16.0% 1,513 36 14.1% 251 150 172 Worldwide less United States 821 -0.5% 14.4% 558 13.7% 10,257 263 16.1% 2,294 1,106 1,186 United States 378 8.4% 8.4% 324 8.8% 5,891 53 6.5% 332 341 377 Worldwide 1,199 2.2% 12.5% 883 11.8% 16,147 316 14.3% 2,626 1,447 1,563   MasterCard Credit and Charge Programs Worldwide less United States 456 -4.1% 9.5% 417 10.5% 6,011 39 0.3% 190 524 588 United States 181 9.3% 9.3% 174 8.9% 1,995 7 21.3% 9 160 192 Worldwide 637 -0.6% 9.5% 591 10.0% 8,006 47 3.1% 199 683 780   MasterCard Debit Programs Worldwide less United States 365 4.4% 21.2% 142 24.2% 4,246 223 19.4% 2,104 582 598 United States 197 7.6% 7.6% 151 8.6% 3,896 46 4.5% 323 182 185 Worldwide 562 5.5% 16.1% 292 15.7% 8,141 269 16.5% 2,427 764 783     For the 12 Months ended December 31, 2015 All MasterCard Credit, GDV Growth Growth

Purchase

Volume

Growth

Purchase

Trans.

Cash

Volume

Growth

Cash

Trans.

Accounts Cards Charge and Debit Programs (Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.) APMEA $1,387 5.7% 14.5% $934 14.6% 12,037 $453 14.1% 4,453 520 555 Canada 131 0.0% 16.0% 124 17.5% 1,801 7 -5.2% 22 43 49 Europe 1,279 -5.6% 15.9% 882 14.1% 17,900 397 20.0% 3,046 393 410 Latin America 320 -10.8% 15.4% 187 17.7% 5,666 133 12.3% 919 150 172 Worldwide less United States 3,118 -1.2% 15.2% 2,127 14.8% 37,403 990 16.0% 8,440 1,106 1,186 United States 1,446 7.5% 7.5% 1,233 7.7% 22,260 213 6.2% 1,341 341 377 Worldwide 4,564 1.4% 12.6% 3,360 12.1% 59,663 1,204 14.1% 9,782 1,447 1,563   MasterCard Credit and Charge Programs Worldwide less United States 1,771 -3.8% 10.6% 1,612 11.8% 22,492 159 0.0% 748 524 588 United States 681 7.6% 7.6% 653 7.4% 7,349 28 11.2% 34 160 192 Worldwide 2,452 -0.9% 9.7% 2,264 10.5% 29,841 187 1.5% 782 683 780   MasterCard Debit Programs Worldwide less United States 1,347 2.3% 21.9% 516 25.6% 14,911 831 19.6% 7,693 582 598 United States 765 7.4% 7.4% 580 8.0% 14,911 185 5.5% 1,308 182 185 Worldwide 2,112 4.1% 16.2% 1,096 15.6% 29,823 1,016 16.8% 9,000 764 783     For the 3 Months ended December 31, 2014 All MasterCard Credit, GDV Growth Growth

Purchase

Volume

Growth

Purchase

Trans.

Cash

Volume

Growth

Cash

Trans.

Accounts Cards Charge and Debit Programs

(Bil.)

 

(USD)

 

(Local)

  (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)  

(Mil.)

 

(Mil.)

 

(Mil.)

APMEA $347 11.0% 15.4% $234 14.9% 2,764 $114 16.5% 1,037 451 482 Canada 35 1.9% 10.4% 33 12.5% 420 2 -16.3% 5 37 44 Europe 346 1.6% 15.9% 234 12.2% 4,041 111 24.7% 718 358 374 Latin America 97 3.4% 16.1% 59 22.0% 1,369 38 7.9% 226 136 156 Worldwide less United States 825 5.6% 15.5% 561 14.3% 8,594 265 18.1% 1,986 982 1,057 United States 348 7.6% 7.6% 298 8.2% 5,307 50 3.6% 325 318 353 Worldwide 1,174 6.2% 13.0% 859 12.1% 13,901 315 15.5% 2,312 1,300 1,410   MasterCard Credit and Charge Programs Worldwide less United States 476 2.1% 10.5% 429 11.7% 5,402 46 0.3% 198 505 568 United States 166 6.9% 6.9% 160 7.9% 1,781 6 -14.9% 8 150 181 Worldwide 641 3.3% 9.5% 589 10.6% 7,183 52 -1.8% 206 655 749   MasterCard Debit Programs Worldwide less United States 350 10.7% 23.1% 131 23.8% 3,192 218 22.7% 1,788 477 489 United States 183 8.2% 8.2% 139 8.6% 3,526 44 6.8% 318 168 172 Worldwide 532 9.8% 17.5% 270 15.5% 6,718 262 19.7% 2,106 645 661     For the 12 Months ended December 31, 2014 All MasterCard Credit, GDV Growth Growth

Purchase

Volume

Growth

Purchase

Trans.

Cash

Volume

Growth

Cash

Trans.

Accounts Cards Charge and Debit Programs (Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.) APMEA $1,312 13.6% 17.2% $879 16.6% 9,990 $434 18.4% 3,863 451 482 Canada 131 -0.2% 6.9% 122 8.7% 1,529 9 -13.0% 23 37 44 Europe 1,355 9.4% 13.9% 917 10.6% 14,627 438 21.5% 2,665 358 374 Latin America 359 4.9% 14.7% 219 20.6% 5,072 140 6.5% 838 136 156 Worldwide less United States 3,157 10.1% 15.0% 2,137 13.9% 31,218 1,020 17.5% 7,388 982 1,057 United States 1,346 8.2% 8.2% 1,145 8.9% 20,352 201 4.6% 1,300 318 353 Worldwide 4,503 9.6% 12.9% 3,282 12.1% 51,570 1,221 15.2% 8,688 1,300 1,410   MasterCard Credit and Charge Programs Worldwide less United States 1,840 6.7% 10.8% 1,647 12.1% 20,159 193 1.2% 809 505 568 United States 633 7.8% 7.8% 607 8.4% 6,729 26 -4.8% 28 150 181 Worldwide 2,473 7.0% 10.0% 2,254 11.1% 26,888 219 0.4% 838 655 749   MasterCard Debit Programs Worldwide less United States 1,317 15.3% 21.4% 490 20.2% 11,058 827 22.2% 6,579 477 489 United States 713 8.6% 8.6% 537 9.4% 13,623 175 6.1% 1,271 168 172 Worldwide 2,030 12.9% 16.6% 1,027 14.3% 24,682 1,002 19.0% 7,850 645 661

 

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  

Footnote

The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions, accounts and cards 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 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 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. All data is subject to revision and amendment by MasterCard’s customers subsequent to the date of its release.

In 2015 Q3, several customers purged inactive MasterCard cards and accounts. Data for the comparable periods has been revised to be consistent with this approach.

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

 

Non-GAAP Reconciliations

($ in millions, except per share data)

       

Twelve Months Ended

December 31, 2015

Twelve

Months

Ended

December

31, 2014

Percent Increase / (Decrease) Actual  

Special

Items1

  Non-GAAP Actual Actual  

Special

Items1

  Non-GAAP Total operating expenses $ 4,589 $ (140 ) $ 4,449 $ 4,335 6 % 3 % 3 % Operating income $ 5,078 $ 140 $ 5,218 $ 5,106 (1 )% (3 )% 2 % Operating Margin 52.5 % 54.0 % 54.1 % Income tax expense $ 1,150 $ 45 $ 1,195 $ 1,462 (21 )% (3 )% (18 )% Effective Tax Rate 23.2 % 23.4 % 28.8 % Net Income $ 3,808 $ 95 $ 3,903 $ 3,617 5 % (3 )% 8 % Diluted Earnings per Share $ 3.35 $ 0.08 $ 3.43 $ 3.10 8 % (3 )% 11 %

 

Note: Figures may not sum due to rounding 1 Represents effect of termination of the U.S. employee pension plan of $79 million ($50 million after tax or $0.04 per diluted share) and U.K. Merchant Litigation Settlement of $61 million ($44 million after tax or $0.04 per diluted share).

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MasterCard IncorporatedInvestor Relations:Barbara Gasper or Matt Lanford, 914-249-4565investor_relations@mastercard.comorMedia Relations:Seth Eisen, 914-249-3153Seth_Eisen@mastercard.com