Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 25, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-32877 | |
Entity Registrant Name | Mastercard Incorporated | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-4172551 | |
Entity Address, Address Line One | 2000 Purchase Street | |
Entity Address, Postal Zip Code | 10577 | |
Entity Address, City or Town | Purchase, | |
Entity Address, State or Province | NY | |
City Area Code | 914 | |
Local Phone Number | 249-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001141391 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Common Stock | ||
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | MA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 974,709,101 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 7,848,294 | |
1.1% Notes due 2022 | ||
Title of 12(b) Security | 1.1% Notes due 2022 | |
Trading Symbol | MA22 | |
Security Exchange Name | NYSE | |
2.1% Notes due 2027 | ||
Title of 12(b) Security | 2.1% Notes due 2027 | |
Trading Symbol | MA27 | |
Security Exchange Name | NYSE | |
2.5% Notes due 2030 | ||
Title of 12(b) Security | 2.5% Notes due 2030 | |
Trading Symbol | MA30 | |
Security Exchange Name | NYSE |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net Revenue | $ 4,985 | $ 3,837 | $ 13,668 | $ 11,181 |
Operating Expenses: | ||||
General and administrative | 1,831 | 1,423 | 5,225 | 4,285 |
Advertising and marketing | 222 | 168 | 557 | 415 |
Depreciation and amortization | 188 | 141 | 537 | 430 |
Provision for litigation | 27 | 0 | 94 | 28 |
Total operating expenses | 2,268 | 1,732 | 6,413 | 5,158 |
Operating income | 2,717 | 2,105 | 7,255 | 6,023 |
Other Income (Expense): | ||||
Investment income | 5 | 3 | 9 | 27 |
Gains (losses) on equity investments, net | 197 | (91) | 534 | (190) |
Interest expense | (110) | (105) | (323) | (275) |
Other income (expense), net | 7 | 3 | 9 | 7 |
Total other income (expense) | 99 | (190) | 229 | (431) |
Income before income taxes | 2,816 | 1,915 | 7,484 | 5,592 |
Income tax expense | 402 | 402 | 1,176 | 966 |
Net Income | $ 2,414 | $ 1,513 | $ 6,308 | $ 4,626 |
Basic Earnings per Share (in dollars per share) | $ 2.45 | $ 1.51 | $ 6.37 | $ 4.61 |
Basic weighted-average shares outstanding (in shares) | 986 | 1,001 | 990 | 1,003 |
Diluted Earnings per Share (in dollars per share) | $ 2.44 | $ 1.51 | $ 6.35 | $ 4.59 |
Diluted weighted-average shares outstanding (in shares) | 990 | 1,005 | 994 | 1,008 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 2,414 | $ 1,513 | $ 6,308 | $ 4,626 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (219) | 228 | (274) | (17) |
Income tax effect | 9 | (8) | 33 | 21 |
Foreign currency translation adjustments, net of income tax effect | (210) | 220 | (241) | 4 |
Translation adjustments on net investment hedges | 90 | (73) | 162 | (82) |
Income tax effect | (20) | 16 | (36) | 18 |
Translation adjustments on net investment hedges, net of income tax effect | 70 | (57) | 126 | (64) |
Cash flow hedges | 2 | 0 | 1 | (189) |
Income tax effect | 0 | 0 | 0 | 42 |
Reclassification adjustments for cash flow hedges | 1 | 2 | 5 | 3 |
Income tax effect | 0 | (1) | (1) | (1) |
Cash flow hedges, net of income tax effect | 3 | 1 | 5 | (145) |
Defined benefit pension and other postretirement plans | 0 | 0 | 0 | 0 |
Income tax effect | 0 | 0 | 0 | 0 |
Reclassification adjustment for defined benefit pension and other postretirement plans | 0 | 0 | (1) | (1) |
Income tax effect | 0 | 0 | 0 | 0 |
Defined benefit pension and other postretirement plans, net of income tax effect | 0 | 0 | (1) | (1) |
Investment securities available-for-sale | (2) | 2 | 0 | (1) |
Income tax effect | 1 | 0 | 0 | 0 |
Investment securities available-for-sale, net of income tax effect | (1) | 2 | 0 | (1) |
Other comprehensive income (loss), net of tax | (138) | 166 | (111) | (207) |
Comprehensive Income | $ 2,276 | $ 1,679 | $ 6,197 | $ 4,419 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 6,406 | $ 10,113 |
Restricted cash for litigation settlement | 586 | 586 |
Investments | 510 | 483 |
Accounts receivable | 2,820 | 2,646 |
Settlement due from customers | 861 | 1,706 |
Restricted security deposits held for customers | 1,832 | 1,696 |
Prepaid expenses and other current assets | 2,367 | 1,883 |
Total current assets | 15,382 | 19,113 |
Property, equipment and right-of-use assets, net of accumulated depreciation and amortization of $1,570 and $1,390, respectively | 1,860 | 1,902 |
Deferred income taxes | 471 | 491 |
Goodwill | 7,569 | 4,960 |
Other intangible assets, net of accumulated amortization of $1,676 and $1,489, respectively | 3,561 | 1,753 |
Other assets | 6,567 | 5,365 |
Total Assets | 35,410 | 33,584 |
Liabilities, Redeemable Non-controlling Interests and Equity | ||
Accounts payable | 557 | 527 |
Settlement due to customers | 496 | 1,475 |
Restricted security deposits held for customers | 1,832 | 1,696 |
Accrued litigation | 838 | 842 |
Accrued expenses | 5,964 | 5,430 |
Current portion of long-term debt | 650 | 649 |
Other current liabilities | 1,224 | 1,228 |
Total current liabilities | 11,561 | 11,847 |
Long-term debt | 13,211 | 12,023 |
Deferred income taxes | 374 | 86 |
Other liabilities | 3,462 | 3,111 |
Total Liabilities | 28,608 | 27,067 |
Commitments and Contingencies | ||
Redeemable Non-controlling Interests | 29 | 29 |
Stockholders’ Equity | ||
Additional paid-in-capital | 5,026 | 4,982 |
Class A treasury stock, at cost, 422 and 409 shares, respectively | (41,282) | (36,658) |
Retained earnings | 43,750 | 38,747 |
Accumulated other comprehensive income (loss) | (791) | (680) |
Mastercard Incorporated Stockholders' Equity | 6,703 | 6,391 |
Non-controlling interests | 70 | 97 |
Total Equity | 6,773 | 6,488 |
Total Liabilities, Redeemable Non-controlling Interests and Equity | 35,410 | 33,584 |
Class A Common Stock | ||
Stockholders’ Equity | ||
Common stock | 0 | 0 |
Class B Common Stock | ||
Stockholders’ Equity | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accumulated depreciation and amortization | $ 1,570 | $ 1,390 |
Other intangible assets, accumulated amortization | $ 1,676 | $ 1,489 |
Class A treasury stock, shares | 422,000,000 | 409,000,000 |
Class A Common Stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, issued | 1,397,000,000 | 1,396,000,000 |
Common stock, outstanding | 976,000,000 | 987,000,000 |
Class B Common Stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 1,200,000,000 | 1,200,000,000 |
Common stock, issued | 8,000,000 | 8,000,000 |
Common stock, outstanding | 8,000,000 | 8,000,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Common StockClass A | Common StockClass B | Additional Paid-In Capital | Class A Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Mastercard Incorporated Stockholders’ Equity | Non- Controlling Interests |
Balance at beginning of period at Dec. 31, 2019 | $ 5,917 | $ 0 | $ 0 | $ 4,787 | $ (32,205) | $ 33,984 | $ (673) | $ 5,893 | $ 24 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
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 | 145 | 139 | 6 | 145 | |||||
Balance at end of period at Sep. 30, 2020 | 5,856 | 0 | 0 | 4,926 | (35,653) | 37,403 | (880) | 5,796 | 60 |
Balance at beginning of period at Jun. 30, 2020 | 6,498 | 0 | 0 | 4,832 | (33,604) | 36,288 | (1,046) | 6,470 | 28 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 1,513 | 1,513 | 1,513 | ||||||
Activity related to non-controlling interests | 32 | 32 | |||||||
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 end of period at Sep. 30, 2020 | 5,856 | 0 | 0 | 4,926 | (35,653) | 37,403 | (880) | 5,796 | 60 |
Balance at beginning of period at Dec. 31, 2020 | 6,488 | 0 | 0 | 4,982 | (36,658) | 38,747 | (680) | 6,391 | 97 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 6,308 | 6,308 | 6,308 | ||||||
Activity related to non-controlling interests | (10) | (10) | |||||||
Acquisition of non-controlling interest | (139) | (122) | (122) | (17) | |||||
Redeemable non-controlling interest adjustments | (4) | (4) | (4) | ||||||
Other comprehensive income (loss) | (111) | (111) | (111) | ||||||
Dividends | (1,301) | (1,301) | (1,301) | ||||||
Purchases of treasury stock | (4,628) | (4,628) | (4,628) | ||||||
Share-based payments | 170 | 166 | 4 | 170 | |||||
Balance at end of period at Sep. 30, 2021 | 6,773 | 0 | 0 | 5,026 | (41,282) | 43,750 | (791) | 6,703 | 70 |
Balance at beginning of period at Jun. 30, 2021 | 6,540 | 0 | 0 | 5,053 | (39,729) | 41,771 | (653) | 6,442 | 98 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,414 | 2,414 | 2,414 | ||||||
Activity related to non-controlling interests | (11) | (11) | |||||||
Acquisition of non-controlling interest | (139) | (122) | (122) | (17) | |||||
Redeemable non-controlling interest adjustments | (2) | (2) | (2) | ||||||
Other comprehensive income (loss) | (138) | (138) | (138) | ||||||
Dividends | (433) | (433) | (433) | ||||||
Purchases of treasury stock | (1,553) | (1,553) | (1,553) | ||||||
Share-based payments | 95 | 95 | 0 | 95 | |||||
Balance at end of period at Sep. 30, 2021 | $ 6,773 | $ 0 | $ 0 | $ 5,026 | $ (41,282) | $ 43,750 | $ (791) | $ 6,703 | $ 70 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities | ||
Net income | $ 6,308 | $ 4,626 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of customer and merchant incentives | 995 | 749 |
Depreciation and amortization | 537 | 430 |
(Gains) losses on equity investments, net | (534) | 190 |
Share-based compensation | 241 | 202 |
Deferred income taxes | (49) | 7 |
Other | 34 | 15 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (234) | 112 |
Settlement due from customers | 845 | 1,618 |
Prepaid expenses | (1,742) | (1,291) |
Accrued litigation and legal settlements | (4) | (116) |
Restricted security deposits held for customers | 136 | 198 |
Accounts payable | (74) | (145) |
Settlement due to customers | (978) | (1,587) |
Accrued expenses | 692 | (399) |
Net change in other assets and liabilities | 101 | 362 |
Net cash provided by operating activities | 6,274 | 4,971 |
Investing Activities | ||
Purchases of investment securities available-for-sale | (326) | (161) |
Purchases of investments held-to-maturity | (172) | (126) |
Proceeds from sales of investment securities available-for-sale | 202 | 349 |
Proceeds from maturities of investment securities available-for-sale | 95 | 127 |
Proceeds from maturities of investments held-to-maturity | 156 | 84 |
Purchases of property and equipment | (285) | (280) |
Capitalized software | (301) | (277) |
Purchases of equity investments | (179) | (183) |
Proceeds from sales of equity investments | 185 | 0 |
Acquisition of businesses, net of cash acquired | (4,197) | (183) |
Settlement of interest rate derivative contracts | 0 | (175) |
Other investing activities | (12) | 0 |
Net cash used in investing activities | (4,834) | (825) |
Financing Activities | ||
Purchases of treasury stock | (4,628) | (3,443) |
Dividends paid | (1,307) | (1,206) |
Proceeds from debt, net | 1,282 | 3,959 |
Acquisition of redeemable non-controlling interests | 0 | (49) |
Acquisition of non-controlling interest | (133) | 0 |
Contingent consideration paid | (64) | 0 |
Tax withholdings related to share-based payments | (130) | (145) |
Cash proceeds from exercise of stock options | 55 | 88 |
Other financing activities | (13) | 19 |
Net cash used in financing activities | (4,938) | (777) |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (80) | 66 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | (3,578) | 3,435 |
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period | 12,419 | 8,969 |
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period | $ 8,841 | $ 12,404 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization Mastercard Incorporated and its consolidated subsidiaries, including Mastercard International Incorporated (“Mastercard International” and together with Mastercard Incorporated, “Mastercard” or the “Company”), is a technology company in the global payments industry that connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide, enabling them to use electronic forms of payment instead of cash and checks. Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Mastercard and its majority-owned and controlled entities, including any variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Investments in VIEs for which the Company is not considered the primary beneficiary are not consolidated and are accounted for as equity method or measurement alternative method investments and recorded in other assets on the consolidated balance sheet. At September 30, 2021 and December 31, 2020, there were no significant VIEs which required consolidation and the investments were not considered material to the consolidated financial statements. The Company consolidates acquisitions as of the date on which the Company has obtained a controlling financial interest. Intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the 2021 presentation. The Company follows accounting principles generally accepted in the United States of America (“GAAP”). The balance sheet as of December 31, 2020 was derived from the audited consolidated financial statements as of December 31, 2020. The consolidated financial statements for the three and nine months ended September 30, 2021 and 2020 and as of September 30, 2021 are unaudited, and in the opinion of management, include all normal recurring adjustments that are necessary to present fairly the results for interim periods. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (“SEC”) requirements for Quarterly Reports on Form 10-Q. Reference should be made to Mastercard’s Annual Report on Form 10-K for the year ended December 31, 2020 for additional disclosures, including a summary of the Company’s significant accounting policies. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Acquisitions During the nine months ended September 30, 2021, the Company acquired businesses for $4.4 billion in cash consideration. These acquisitions align with the Company’s strategy to grow, diversify and build the Company’s business. On March 5, 2021, Mastercard acquired a majority of the Corporate Services business of Nets Denmark A/S (“Nets”) for €3.0 billion (approximately $3.6 billion as of the date of acquisition) in cash consideration based on a €2.85 billion enterprise value, adjusted for cash and net working capital at closing. The business acquired is primarily comprised of clearing and instant payment services and e-billing solutions. In relation to this acquisition, the Company’s preliminary estimate of net assets acquired primarily relates to intangible assets, including goodwill of $2.1 billion, of which $0.8 billion is expected to be deductible for local tax purposes. The goodwill arising from this acquisition is primarily attributable to the synergies expected to arise through geographic, product and customer expansion, the underlying technology and workforce acquired. On June 9, 2021, Mastercard acquired a 100% equity interest in Ekata, Inc. (“Ekata”) for cash consideration of $861 million, based on an $850 million enterprise value, adjusted for cash and net working capital at closing. The acquisition of Ekata is expected to broaden the Company’s digital identity verification capabilities. The residual value allocated to goodwill is primarily attributable to the synergies expected to arise after the acquisition date and none of the goodwill is expected to be deductible for local tax purposes. Refer to Note 1 (Summary of Significant Accounting Policies) to the consolidated financial statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 for the valuation techniques Mastercard utilizes to fair value the respective components of business combinations. The Company is in the process of evaluating additional information necessary to finalize the valuation of the acquired assets and liabilities assumed as of the acquisition dates for the Nets and Ekata acquisitions. Therefore, the preliminary fair values set forth below use information available as of September 30, 2021 and are subject to adjustment as additional information is evaluated and the valuations are completed. The initial purchase price allocation, as of the acquisition dates, is noted below: (in millions) Assets: Cash and cash equivalents $ 228 Other current assets 33 Other intangible assets 1,917 Goodwill 2,695 Other assets 15 Total assets 4,888 Liabilities: Other current liabilities 91 Deferred income taxes 359 Other liabilities 11 Total liabilities 461 Net assets acquired $ 4,427 The following table summarizes the identified intangible assets acquired during the nine months ended September 30, 2021: Acquisition Date Fair Value Weighted-Average Useful Life (in millions) (in years) Developed technologies $ 366 12.3 Customer relationships 1,530 19.0 Other 21 8.0 Other intangible assets $ 1,917 17.6 Proforma information related to these acquisitions was not included because the impact on the Company’s consolidated results of operations was not considered to be material. In 2020, the Company acquired several businesses in separate transactions for total consideration of $1.1 billion. As of September 30, 2021, the Company had finalized the purchase accounting for $185 million of the businesses acquired and is evaluating and finalizing the purchase accounting for the remainder of businesses acquired during 2020. For the preliminary estimated and final fair values of the purchase price allocations, as of the acquisition dates, refer to Note 2 (Acquisitions) to the consolidated financial statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Pending Acquisitions |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company’s disaggregated net revenue by source and geographic region were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Revenue by source: Domestic assessments $ 2,139 $ 1,750 $ 5,993 $ 4,907 Cross-border volume fees 1,276 791 3,284 2,645 Transaction processing 2,849 2,251 7,812 6,352 Other revenues 1,562 1,143 4,384 3,286 Gross revenue 7,826 5,935 21,473 17,190 Rebates and incentives (contra-revenue) (2,841) (2,098) (7,805) (6,009) Net revenue $ 4,985 $ 3,837 $ 13,668 $ 11,181 Net revenue by geographic region: North American Markets $ 1,707 $ 1,381 $ 4,803 $ 3,958 International Markets 3,218 2,419 8,715 7,094 Other 1 60 37 150 129 Net revenue $ 4,985 $ 3,837 $ 13,668 $ 11,181 1 Includes revenues managed by corporate functions. The Company’s customers are generally billed weekly, however, the frequency is dependent upon the nature of the performance obligation and the underlying contractual terms. The Company does not typically offer extended payment terms to customers. The following table sets forth the location of the amounts recognized on the consolidated balance sheet from contracts with customers: September 30, December 31, (in millions) Receivables from contracts with customers Accounts receivable $ 2,661 $ 2,505 Contract assets Prepaid expenses and other current assets 84 59 Other assets 365 245 Deferred revenue 1 Other current liabilities 416 355 Other liabilities 209 143 1 Revenue recognized from performance obligations satisfied during the three and nine months ended September 30, 2021 and 2020 was $180 million and $651 million and $289 million and $684 million, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The components of basic and diluted earnings per share (“EPS”) for common shares were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions, except per share data) Numerator Net income $ 2,414 $ 1,513 $ 6,308 $ 4,626 Denominator Basic weighted-average shares outstanding 986 1,001 990 1,003 Dilutive stock options and stock units 4 4 4 5 Diluted weighted-average shares outstanding 1 990 1,005 994 1,008 Earnings per Share Basic $ 2.45 $ 1.51 $ 6.37 $ 4.61 Diluted $ 2.44 $ 1.51 $ 6.35 $ 4.59 1 For the periods presented, the calculation of diluted EPS excluded a minimal amount of anti-dilutive share-based payment awards. |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents reported on the consolidated balance sheet that total to the amounts shown on the consolidated statement of cash flows. September 30, December 31, (in millions) Cash and cash equivalents $ 6,406 $ 10,113 Restricted cash and restricted cash equivalents Restricted cash for litigation settlement 586 586 Restricted security deposits held for customers 1,832 1,696 Prepaid expenses and other current assets 17 24 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 8,841 $ 12,419 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The Company’s investments on the consolidated balance sheet include both available-for-sale and held-to-maturity securities (see Investments section below). The Company classifies its investments in equity securities of publicly traded and privately held companies within other assets on the consolidated balance sheet (see Equity Investments section below). Investments Investments on the consolidated balance sheet consisted of the following: September 30, December 31, (in millions) Available-for-sale securities $ 335 $ 321 Held-to-maturity securities 175 162 Total investments $ 510 $ 483 Available-for-Sale Securities The major classes of the Company’s available-for-sale investment securities and their respective amortized cost basis and fair values were as follows: September 30, 2021 December 31, 2020 Amortized Gross Gross Fair Amortized Gross Gross Fair (in millions) Municipal securities $ 3 $ — $ — $ 3 $ 10 $ — $ — $ 10 Government and agency securities 115 — — 115 64 — — 64 Corporate securities 216 1 — 217 246 1 — 247 Total $ 334 $ 1 $ — $ 335 $ 320 $ 1 $ — $ 321 The Company’s corporate and municipal available-for-sale investment securities held at September 30, 2021 and December 31, 2020 primarily carried a credit rating of A- or better. Corporate securities are comprised of commercial paper and corporate bonds. Municipal securities are comprised of state tax-exempt bonds and are diversified across states and sectors. Government and agency securities include U.S. government bonds, U.S. government sponsored agency bonds and foreign government bonds which are denominated in the national currency of the issuing country. Unrealized gains and losses are recorded as a separate component of other comprehensive income (loss) on the consolidated statement of comprehensive income. The maturity distribution based on the contractual terms of the Company’s investment securities at September 30, 2021 was as follows: Available-For-Sale Amortized Cost Fair Value (in millions) Due within 1 year $ 149 $ 149 Due after 1 year through 5 years 185 186 Total $ 334 $ 335 Investment income on the consolidated statement of operations primarily consists of interest income generated from cash, cash equivalents, time deposits, and realized gains and losses on the Company’s investment securities. The realized gains and losses from the sales of available-for-sale securities for the three and nine months ended September 30, 2021 and 2020 were not significant. Held-to-Maturity Securities The Company classifies time deposits with maturities greater than three months but less than one year as held-to-maturity. Time deposits are carried at amortized cost on the consolidated balance sheet and are intended to be held until maturity. The cost of these securities approximates fair value. Equity Investments Included in other assets on the consolidated balance sheet are equity investments with readily determinable fair values (“Marketable securities”) and equity investments without readily determinable fair values (“Nonmarketable securities”). Marketable securities are publicly traded companies and are measured using unadjusted quoted prices in their respective active markets. Nonmarketable securities that do not qualify for equity method accounting are measured at cost, less any impairment and adjusted for changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer (“measurement alternative”). The following table is a summary of the activity related to the Company’s equity investments: Balance at December 31, 2020 Purchases Sales Changes in Fair Value 1 Other 2 Balance at September 30, 2021 (in millions) Marketable securities $ 476 $ — $ (165) $ 142 $ 33 $ 486 Nonmarketable securities 696 179 (20) 392 (49) 1,198 Total equity investments $ 1,172 $ 179 $ (185) $ 534 $ (16) $ 1,684 1 Recorded in gains (losses) on equity investments, net on the consolidated statement of operations. 2 Includes transfers between equity investment categories due to changes to the existence of readily determinable fair values and translational impact of currency. The following table sets forth the components of the Company’s Nonmarketable securities: September 30, December 31, (in millions) Measurement alternative 1 $ 953 $ 539 Equity method 245 157 Total Nonmarketable securities $ 1,198 $ 696 1 Cumulative im pairments and downward fair value adjustments on measurement alternative investments were $15 million and cumulative upward fair value adjustments were $396 million as of September 30, 2021. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company classifies its fair value measurements of financial instruments into a three-level hierarchy (the “Valuation Hierarchy”). Financial instruments are categorized for fair value measurement purposes as recurring or non-recurring in nature. Transfers made among the three levels in the Valuation Hierarchy for the three and nine months ended September 30, 2021 were not material. Financial Instruments - Recurring Measurements The distribution of the Company’s financial instruments measured at fair value on a recurring basis within the Valuation Hierarchy were as follows: September 30, 2021 December 31, 2020 Quoted Prices Significant Significant Total Quoted Prices Significant Significant Total (in millions) Assets Investment securities available for sale 1 : Municipal securities $ — $ 3 $ — $ 3 $ — $ 10 $ — $ 10 Government and agency securities 36 79 — 115 26 38 — 64 Corporate securities — 217 — 217 — 247 — 247 Derivative instruments 2 : Foreign exchange contracts — 68 — 68 — 19 — 19 Marketable securities 3 : Equity securities 486 — — 486 476 — — 476 Deferred compensation plan 4 : Deferred compensation assets 85 — — 85 78 — — 78 Liabilities Derivative instruments 2 : Foreign exchange derivative liabilities $ — $ (2) $ — $ (2) $ — $ (28) $ — $ (28) Deferred compensation plan 5 : Deferred compensation liabilities (85) — — (85) (81) — — (81) 1 The Company’s U.S. government securities are classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices for identical assets in active markets. The fair value of the Company’s available-for-sale municipal securities, non-U.S. government and agency securities and corporate securities are based on observable inputs such as quoted prices, benchmark yields and issuer spreads for similar assets in active markets and are therefore included in Level 2 of the Valuation Hierarchy. 2 The Company’s foreign exchange derivative asset and liability contracts have been classified within Level 2 of the Valuation Hierarchy as the fair value is based on observable inputs such as broker quotes relating to foreign exchange for similar derivative instruments. See Note 17 (Derivative and Hedging Instruments) for further details. 3 The Company’s Marketable securities are publicly held and classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices in their respective active markets. 4 The Company has a nonqualified deferred compensation plan where assets are invested primarily in mutual funds held in a rabbi trust, which is restricted for payments to participants of the plan. The Company has elected to use the fair value option for these mutual funds, which are measured using quoted prices of identical instruments in active markets and are included in prepaid expenses and other current assets on the consolidated balance sheet. 5 The deferred compensation liabilities are measured at fair value based on the quoted prices of identical instruments to the investment vehicles selected by the participants. These are included in other liabilities on the consolidated balance sheet. Financial Instruments - Non-Recurring Measurements Nonmarketable Securities The Company’s Nonmarketable securities are recorded at fair value on a non-recurring basis in periods after initial recognition under the equity method or measurement alternative method. Nonmarketable securities are classified within Level 3 of the Valuation Hierarchy due to the absence of quoted market prices, the inherent lack of liquidity and unobservable inputs used to measure fair value that require management’s judgment. The Company uses discounted cash flows and market assumptions to estimate the fair value of its Nonmarketable securities when certain events or circumstances indicate that impairment may exist. See Note 6 (Investments) for further details. Debt The Company estimates the fair value of its long-term debt based on market quotes. These debt securities are classified as Level 2 of the Valuation Hierarchy as they are not traded in active markets. At September 30, 2021, the carrying value and fair value of total long-term debt (including the current portion) was $13.9 billion and $15.3 billion, respectively. At December 31, 2020, the carrying value and fair value of long-term debt (including the current portion) was $12.7 billion and $14.8 billion, respectively. See Note 10 (Debt) for further details. Other Financial Instruments Certain other financial instruments are carried on the consolidated balance sheet at cost or amortized cost basis, which approximates fair value due to their short-term, highly liquid nature. These instruments include cash and cash equivalents, restricted cash, time deposits, accounts receivable, settlement due from customers, restricted security deposits held for customers, accounts payable, settlement due to customers and other accrued liabilities. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 9 Months Ended |
Sep. 30, 2021 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets Prepaid expenses and other current assets consisted of the following: September 30, December 31, (in millions) Customer and merchant incentives $ 1,289 $ 1,086 Prepaid income taxes 173 78 Other 905 719 Total prepaid expenses and other current assets $ 2,367 $ 1,883 Other assets consisted of the following: September 30, December 31, (in millions) Customer and merchant incentives $ 3,732 $ 3,220 Equity investments 1,684 1,172 Income taxes receivable 609 553 Other 542 420 Total other assets $ 6,567 $ 5,365 Customer and merchant incentives represent payments made to customers and merchants under business agreements. Costs directly related to entering into such an agreement are generally deferred and amortized over the life of the agreement. |
Accrued Expenses and Accrued Li
Accrued Expenses and Accrued Litigation | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Accrued Litigation | Accrued Expenses and Accrued Litigation Accrued expenses consisted of the following: September 30, December 31, (in millions) Customer and merchant incentives $ 4,247 $ 3,998 Personnel costs 836 727 Income and other taxes 392 208 Other 489 497 Total accrued expenses $ 5,964 $ 5,430 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt [Abstract] | |
Debt | Debt Long-term debt consisted of the following: September 30, December 31, Effective (in millions) 2021 USD Notes 1.900 % Senior Notes due March 2031 $ 600 $ — 1.981 % 2.950 % Senior Notes due March 2051 700 — 3.013 % 2020 USD Notes 3.300 % Senior Notes due March 2027 1,000 1,000 3.420 % 3.350 % Senior Notes due March 2030 1,500 1,500 3.430 % 3.850 % Senior Notes due March 2050 1,500 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 EUR Notes 1 1.100 % Senior Notes due December 2022 815 859 1.265 % 2.100 % Senior Notes due December 2027 932 982 2.189 % 2.500 % Senior Notes due December 2030 175 184 2.562 % 2014 USD Notes 3.375 % Senior Notes due April 2024 1,000 1,000 3.484 % 13,972 12,775 Less: Unamortized discount and debt issuance costs (111) (103) Total debt outstanding 13,861 12,672 Less: Current portion 2 (650) (649) Long-term debt $ 13,211 $ 12,023 1 €1.650 billion euro-denominated debt issued in December 2015. 2 2016 USD Notes due in November 2021 are classified on the consolidated balance sheet as current portion of long-term debt. In October 2021, the Company exercised its redemption option and paid the total principal related to the 2016 USD Notes due in November 2021 of $650 million to reduce interest expense. No repayment penalties were incurred. In March 2021, the Company issued $600 million principal amount of notes due March 2031 and $700 million principal amount of notes due March 2051 (collectively the “2021 USD Notes”). The net proceeds from the issuance of the 2021 USD Notes, after deducting the original issue discount, underwriting discount and offering expenses, were $1.282 billion. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The Company declared quarterly cash dividends on its Class A and Class B Common Stock during the three and nine months ended September 30, 2021 and 2020 as summarized below: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions, except per share data) Dividends declared per share $ 0.44 $ 0.40 $ 1.32 $ 1.20 Total dividends declared $ 433 $ 398 $ 1,301 $ 1,202 The following table presents the changes in the Company’s outstanding Class A and Class B common stock for the nine months ended September 30, 2021: Outstanding Shares Class A Class B (in millions) Balance at December 31, 2020 986.9 8.3 Purchases of treasury stock (12.8) — Share-based payments 1.2 — Conversion of Class B to Class A common stock 0.4 (0.4) Balance at September 30, 2021 975.7 7.9 In December 2020 and 2019, the Company’s Board of Directors approved share repurchase programs authorizing the Company to repurchase up to $6.0 billion and $8.0 billion, respectively, of its Class A common stock under each plan. The program approved in 2020 became effective in August 2021 after completion of the share repurchase program authorized in 2019. During the nine months ended September 30, 2021, the Company repurchased 12.8 million shares of its common stock for $4.6 billion at an average price of $360.87. As of September 30, 2021 the remaining authorization was $5.2 billion. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2021 and 2020 were as follows: December 31, 2020 Increase / (Decrease) Reclassifications September 30, 2021 (in millions) Foreign currency translation adjustments 1 $ (352) $ (241) $ — $ (593) Translation adjustments on net investment hedges 2 (175) 126 — (49) Cash flow hedges Foreign exchange contracts 3 — 1 1 2 Interest rate contracts 4 (133) — 3 (130) Defined benefit pension and other postretirement plans (20) — (1) (21) Investment securities available-for-sale — — — — Accumulated Other Comprehensive Income (Loss) $ (680) $ (114) $ 3 $ (791) December 31, 2019 Increase / (Decrease) Reclassifications September 30, 2020 (in millions) Foreign currency translation adjustments 1 $ (638) $ 4 $ — $ (634) Translation adjustments on net investment hedges 2 (38) (64) — (102) Cash flow hedges Interest rate contracts 4 11 (147) 2 (134) Defined benefit pension and other postretirement plans (9) — (1) (10) Investment securities available-for-sale 1 (1) — — Accumulated Other Comprehensive Income (Loss) $ (673) $ (208) $ 1 $ (880) 1. During the nine months ended September 30, 2021, t he increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the depreciation of the euro against the U.S. dollar. During the nine months ended September 30, 2020, foreign currency translation adjustments were not material. 2. During the nine months ended September 30, 2021, t he decrease i n the accumulated other comprehensive loss related to the net investment hedges was driven by the depreciation of the euro against the U.S. dollar. Du ring the nine months ended September 30, 2020, the increase in the accumulated other comprehensive loss related to the net investment hedges was driven by the appreciation of the euro against the U.S. dollar. See Note 17 (Derivative and Hedging Instruments) for additional information. 3. Beginning in 2021, certain foreign exchange derivative contracts are designated as cash flow hedging instruments. Gains and losses resulting from changes in the fair value of these contracts are deferred in accumulated other comprehensive income (loss) and subsequently reclassified to the consolidated statement of operations when the underlying hedged transactions impact earnings. See Note 17 (Derivative and Hedging Instruments) for additional information. 4. In 2019, the Company entered into treasury rate locks which are accounted for as cash flow hedges. In the first quarter of 2020, in connection with the issuance of the 2020 USD Notes, these contracts were settled for a loss of $175 million, or $136 million net of tax, recorded in accumulated other comprehensive income (loss). The cumulative loss will be reclassified as an adjustment to interest expense over the respective terms of the 2020 USD Notes. See Note 17 (Derivative and Hedging Instruments) for additional information. |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Share-Based Payments | Share-Based Payments During the nine months ended September 30, 2021, the Company granted the following awards under the Mastercard Incorporated 2006 Long Term Incentive Plan, as amended and restated as of June 5, 2012 (the “LTIP”). The LTIP is a stockholder-approved plan that permits the grant of various types of equity awards to employees. Grants in 2021 Weighted-Average (in millions) (per option/unit) Non-qualified stock options 0.3 $ 92 Restricted stock units 0.8 358 Performance stock units 0.2 385 The Company used the Black-Scholes option pricing model to determine the grant-date fair value of stock options and calculated the expected life and the expected volatility based on historical Mastercard information. The expected life of stock options granted in 2021 was estimated to be six years, while the expected volatility was determined to be 26.1%. Stock options generally vest in four equal annual installments beginning one year after the date of grant and expire ten years from the date of grant. The fair value of restricted stock units (“RSUs”) is determined and fixed on the grant date based on the Company’s Class A common stock price, adjusted for the exclusion of dividend equivalents. The shares underlying the RSUs will generally vest in four equal annual installments beginning one year after the date of grant. The Company used the Monte Carlo simulation valuation model to determine the grant-date fair value of performance stock units (“PSUs”) granted. Shares underlying the PSUs will vest after three years from the date of grant and are subject to a mandatory one-year deferral period, during which vested PSUs are eligible for dividend equivalents. Compensation expense is recorded net of estimated forfeitures over the shorter of the vesting period or the date the individual becomes eligible to retire under the LTIP. The Company uses the straight-line method of attribution over the requisite service period for expensing equity awards. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rates were 14.3% and 21.0% for the three months ended September 30, 2021 and 2020, respectively. The lower effective income tax rate for the three months ended September 30, 2021, versus the comparable period in 2020, was primarily due to the recognition of U.S. tax benefits in the current period, the majority of which were discrete, resulting from a higher foreign derived intangible income deduction and greater utilization of foreign tax credits in the U.S. In addition, there were certain gains on equity investments that did not result in tax expense in the current period which also contributed to the lower effective tax rate. The effective income tax rates were 15.7% and 17.3% for the nine months ended September 30, 2021 and 2020, respectively. The lower effective income tax rate for the nine months ended September 30, 2021, versus the comparable period in 2020, was primarily due to the recognition of U.S. tax benefits in the third quarter of 2021, the majority of which were discrete, resulting from a higher foreign derived intangible income deduction and greater utilization of foreign tax credits in the U.S. In addition, there were certain gains on equity investments that did not result in tax expense in the current period which also contributed to the lower effective tax rate. These benefits were partially offset by a lower discrete tax benefit related to share-based payments and a change in the Company’s geographic mix of earnings. The Company is subject to tax in the United States, Belgium, Singapore, the United Kingdom and various other foreign jurisdictions, as well as state and local jurisdictions. Uncertain tax positions are reviewed on an ongoing basis and are adjusted after considering facts and circumstances, including progress of tax audits, developments in case law and closing of statutes of limitation. Within the next twelve months, the Company believes that the resolution of certain federal, foreign and state and local examinations are reasonably possible and that a change in estimate, reducing unrecognized tax benefits, may occur. While such a change may be significant, it is not possible to provide a range of the potential change until the examinations progress further or the related statutes of limitation expire. The Company has effectively settled its U.S. federal income tax obligations through 2011. With limited exception, the Company is no longer subject to state and local or foreign examinations by tax authorities for years before 2010. |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 9 Months Ended |
Sep. 30, 2021 | |
Legal and Regulatory Proceedings [Abstract] | |
Legal and Regulatory Proceedings | Legal and Regulatory Proceedings Mastercard is a party to legal and regulatory proceedings with respect to a variety of matters in the ordinary course of business. Some of these proceedings are based on complex claims involving substantial uncertainties and unascertainable damages. Accordingly, except as discussed below, it is not possible to determine the probability of loss or estimate damages, and therefore, Mastercard has not established reserves for any of these proceedings. When the Company determines that a loss is both probable and reasonably estimable, Mastercard records a liability and discloses the amount of the liability if it is material. When a material loss contingency is only reasonably possible, Mastercard does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Unless otherwise stated below with respect to these matters, Mastercard cannot provide an estimate of the possible loss or range of loss based on one or more of the following reasons: (1) actual or potential plaintiffs have not claimed an amount of monetary damages or the amounts are unsupportable or exaggerated, (2) the matters are in early stages, (3) there is uncertainty as to the outcome of pending appeals or motions, (4) there are significant factual issues to be resolved, (5) the existence in many such proceedings of multiple defendants or potential defendants whose share of any potential financial responsibility has yet to be determined and/or (6) there are novel legal issues presented. Furthermore, except as identified with respect to the matters below, Mastercard does not believe that the outcome of any individual existing legal or regulatory proceeding to which it is a party will have a material adverse effect on its results of operations, financial condition or overall business. However, an adverse judgment or other outcome or settlement with respect to any proceedings discussed below could result in fines or payments by Mastercard and/or could require Mastercard to change its business practices. In addition, an adverse outcome in a regulatory proceeding could lead to the filing of civil damage claims and possibly result in significant damage awards. Any of these events could have a material adverse effect on Mastercard’s results of operations, financial condition and overall business. Interchange Litigation and Regulatory Proceedings Mastercard’s interchange fees and other practices are subject to regulatory, legal review and/or challenges in a number of jurisdictions, including the proceedings described below. When taken as a whole, the resulting decisions, regulations and legislation with respect to interchange fees and acceptance practices may have a material adverse effect on the Company’s prospects for future growth and its overall results of operations, financial position and cash flows. United States. In June 2005, the first of a series of complaints were filed on behalf of merchants (the majority of the complaints were styled as class actions, although a few complaints were filed on behalf of individual merchant plaintiffs) against Mastercard International, Visa U.S.A., Inc., Visa International Service Association and a number of financial institutions. Taken together, the claims in the complaints were generally brought under both Sections 1 and 2 of the Sherman Act, which prohibit monopolization and attempts or conspiracies to monopolize a particular industry, and some of these complaints contain unfair competition law claims under state law. The complaints allege, among other things, that Mastercard, Visa, and certain financial institutions conspired to set the price of interchange fees, enacted point of sale acceptance rules (including the no surcharge rule) in violation of antitrust laws and engaged in unlawful tying and bundling of certain products and services, resulting in merchants paying excessive costs for the acceptance of Mastercard and Visa credit and debit cards. The cases were consolidated for pre-trial proceedings in the U.S. District Court for the Eastern District of New York in MDL No. 1720. The plaintiffs filed a consolidated class action complaint that seeks treble damages. In July 2006, the group of purported merchant class plaintiffs filed a supplemental complaint alleging that Mastercard’s initial public offering of its Class A Common Stock in May 2006 (the “IPO”) and certain purported agreements entered into between Mastercard and financial institutions in connection with the IPO: (1) violate U.S. antitrust laws and (2) constituted a fraudulent conveyance because the financial institutions allegedly attempted to release, without adequate consideration, Mastercard’s right to assess them for Mastercard’s litigation liabilities. The class plaintiffs sought treble damages and injunctive relief including, but not limited to, an order reversing and unwinding the IPO. In February 2011, Mastercard and Mastercard International entered into each of: (1) an omnibus judgment sharing and settlement sharing agreement with Visa Inc., Visa U.S.A. Inc. and Visa International Service Association and a number of financial institutions; and (2) a Mastercard settlement and judgment sharing agreement with a number of financial institutions. The agreements provide for the apportionment of certain costs and liabilities which Mastercard, the Visa parties and the financial institutions may incur, jointly and/or severally, in the event of an adverse judgment or settlement of one or all of the merchant litigation cases. Among a number of scenarios addressed by the agreements, in the event of a global settlement involving the Visa parties, the financial institutions and Mastercard, Mastercard would pay 12% of the monetary portion of the settlement. In the event of a settlement involving only Mastercard and the financial institutions with respect to their issuance of Mastercard cards, Mastercard would pay 36% of the monetary portion of such settlement. In October 2012, the parties entered into a definitive settlement agreement with respect to the merchant class litigation (including with respect to the claims related to the IPO) and the defendants separately entered into a settlement agreement with the individual merchant plaintiffs. The settlements included cash payments that were apportioned among the defendants pursuant to the omnibus judgment sharing and settlement sharing agreement described above. Mastercard also agreed to provide class members with a short-term reduction in default credit interchange rates and to modify certain of its business practices, including its “no surcharge” rule. The court granted final approval of the settlement in December 2013, and objectors to the settlement appealed that decision to the U.S. Court of Appeals for the Second Circuit. In June 2016, the court of appeals vacated the class action certification, reversed the settlement approval and sent the case back to the district court for further proceedings. The court of appeals’ ruling was based primarily on whether the merchants were adequately represented by counsel in the settlement. As a result of the appellate court ruling, the district court divided the merchants’ claims into two separate classes - monetary damages claims (the “Damages Class”) and claims seeking changes to business practices (the “Rules Relief Class”). The court appointed separate counsel for each class. In September 2018, the parties to the Damages Class litigation entered into a class settlement agreement to resolve the Damages Class claims. The time period during which Damages Class members were permitted to opt out of the class settlement agreement ended in July 2019 with merchants representing slightly more than 25% of the Damages Class interchange volume choosing to opt out of the settlement. The district court granted final approval of the settlement in December 2019. The district court’s settlement approval order has been appealed and oral argument on the appeal is scheduled for January 2022. Mastercard has commenced settlement negotiations with a number of the opt-out merchants and has reached settlements and/or agreements in principle to settle a number of these claims. The Damages Class settlement agreement does not relate to the Rules Relief Class claims. Separate settlement negotiations with the Rules Relief Class are ongoing. Briefing on summary judgment motions in the Rules Relief Class and opt-out merchant cases was completed in December 2020. In September 2021, the district court granted the Rules Relief Class’s motion for class certification. As of September 30, 2021 and December 31, 2020, Mastercard had accrued a liability of $783 million as a reserve for both the Damages Class litigation and the opt-out merchant cases. As of September 30, 2021 and December 31, 2020, Mastercard had $586 million in a qualified cash settlement fund related to the Damages Class litigation and classified as restricted cash on its consolidated balance sheet. The reserve as of September 30, 2021 for both the Damages Class litigation and the opt-out merchants represents Mastercard’s best estimate of its probable liabilities in these matters. The portion of the accrued liability relating to both the opt-out merchants and the Damages Class litigation settlement does not represent an estimate of a loss, if any, if the matters were litigated to a final outcome. Mastercard cannot estimate the potential liability if that were to occur. Europe. Since May 2012, a number of United Kingdom (“U.K.”) merchants filed claims or threatened litigation against Mastercard seeking damages for excessive costs paid for acceptance of Mastercard credit and debit cards arising out of alleged anti-competitive conduct with respect to, among other things, Mastercard’s cross-border interchange fees and its U.K. and Ireland domestic interchange fees (the “U.K. Merchant claimants”). In addition, Mastercard, has faced similar filed or threatened litigation by merchants with respect to interchange rates in other countries in Europe (the “Pan-European Merchant claimants”). Mastercard has resolved a substantial amount of these damages claims through settlement or judgment. Approximately £1 billion (approximately $1.2 billion as of September 30, 2021) of unresolved damages claims remain. In January 2017, Mastercard received a liability judgment in its favor on all significant matters in a separate action brought by ten of the U.K. Merchant claimants. Three of the U.K. Merchant claimants appealed the judgment, and these appeals were combined with Mastercard’s appeal of a 2016 judgment in favor of one U.K. merchant. In July 2018, the U.K. appellate court heard the appeals of the four merchant claimants and ruled against both Mastercard and Visa on two of the three legal issues being considered. The parties appealed the rulings to the U.K. Supreme Court. In June 2020, the U.K. Supreme Court ruled against Mastercard and Visa with respect to one of the liability issues being considered by the Court related to U.K. domestic interchange fees. Additionally, the U.K Supreme Court set out the legal standard that should be applied by lower trial courts with respect to determining whether interchange was exemptible under applicable law, and provided guidance to lower courts with regard to the legal standard that should be applied in assessing merchants’ damages claims. The U.K. Supreme Court sent three of the merchant cases back to the trial court solely for the purpose of determining damages issues. This determination is not expected to occur until 2023. Mastercard continues to litigate with the remaining U.K. and Pan-European Merchant claimants and it has submitted statements of defense disputing liability and damages claims. The majority of these merchant claims generally had been stayed pending the decision of the U.K. Supreme Court, and a number of those matters are now progressing with motion practice and discovery. In one of the actions involving multiple merchant plaintiff claims, in May 2021 the court heard oral argument with respect to the plaintiffs’ motion for summary judgment on certain liability issues. For the three months ended September 30, 2021, Mastercard incurred charges of $27 million related to litigation settlements and estimated attorneys’ fees with a number of U.K. merchants. In September 2016, a proposed collective action was filed in the United Kingdom on behalf of U.K. consumers seeking damages for intra-EEA and domestic U.K. interchange fees that were allegedly passed on to consumers by merchants between 1992 and 2008. The complaint, which seeks to leverage the European Commission’s 2007 decision on intra-EEA interchange fees, claims damages in an amount that exceeds £14 billion (approximately $19 billion as of September 30, 2021). In July 2017, the trial court denied the plaintiffs’ application for the case to proceed as a collective action. In April 2019, the U.K. appellate court granted the plaintiffs’ appeal of the trial court’s decision and sent the case back to the trial court for a re-hearing on the plaintiffs’ collective action application. In December 2020, the U.K. Supreme Court rejected Mastercard’s appeal of this ruling. In March 2021, the trial court held a re-hearing on the plaintiffs’ collective action application, during which Mastercard sought to narrow the scope of the proposed class. In August 2021, the trial court issued a decision in which it granted class certification but agreed with Mastercard’s argument and narrowed the scope of the class. The plaintiffs did not appeal the trial court’s decision narrowing the class. A class management conference is scheduled for January 2022. ATM Non-Discrimination Rule Surcharge Complaints In October 2011, a trade association of independent Automated Teller Machine (“ATM”) operators and 13 independent ATM operators filed a complaint styled as a class action lawsuit in the U.S. District Court for the District of Columbia against both Mastercard and Visa (the “ATM Operators Complaint”). Plaintiffs seek to represent a class of non-bank operators of ATM terminals that operate in the United States with the discretion to determine the price of the ATM access fee for the terminals they operate. Plaintiffs allege that Mastercard and Visa have violated Section 1 of the Sherman Act by imposing rules that require ATM operators to charge non-discriminatory ATM surcharges for transactions processed over Mastercard’s and Visa’s respective networks that are not greater than the surcharge for transactions over other networks accepted at the same ATM. Plaintiffs seek both injunctive and monetary relief equal to treble the damages they claim to have sustained as a result of the alleged violations and their costs of suit, including attorneys’ fees. Subsequently, multiple related complaints were filed in the U.S. District Court for the District of Columbia alleging both federal antitrust and multiple state unfair competition, consumer protection and common law claims against Mastercard and Visa on behalf of putative classes of users of ATM services (the “ATM Consumer Complaints”). The claims in these actions largely mirror the allegations made in the ATM Operators Complaint, although these complaints seek damages on behalf of consumers of ATM services who pay allegedly inflated ATM fees at both bank and non-bank ATM operators as a result of the defendants’ ATM rules. Plaintiffs seek both injunctive and monetary relief equal to treble the damages they claim to have sustained as a result of the alleged violations and their costs of suit, including attorneys’ fees. In January 2012, the plaintiffs in the ATM Operators Complaint and the ATM Consumer Complaints filed amended class action complaints that largely mirror their prior complaints. In February 2013, the district court granted Mastercard’s motion to dismiss the complaints for failure to state a claim. On appeal, the Court of Appeals reversed the district court’s order in August 2015 and sent the case back for further proceedings. In September 2019, the plaintiffs filed their motions for class certification in which the plaintiffs, in aggregate, allege over $1 billion in damages against all of the defendants. In August 2021, the trial court issued an order granting the plaintiffs request for class certification. Visa and Mastercard’s request for permission to appeal the certification decision to the appellate court was granted. Briefing on the appeal is expected to take place over the course of 2022. Mastercard intends to vigorously defend against both the plaintiffs’ liability and damages claims. U.S. Liability Shift Litigation In March 2016, a proposed U.S. merchant class action complaint was filed in federal court in California alleging that Mastercard, Visa, American Express and Discover (the “Network Defendants”), EMVCo, and a number of issuing banks (the “Bank Defendants”) engaged in a conspiracy to shift fraud liability for card present transactions from issuing banks to merchants not yet in compliance with the standards for EMV chip cards in the United States (the “EMV Liability Shift”), in violation of the Sherman Act and California law. Plaintiffs allege damages equal to the value of all chargebacks for which class members became liable as a result of the EMV Liability Shift on October 1, 2015. The plaintiffs seek treble damages, attorney’s fees and costs and an injunction against future violations of governing law, and the defendants have filed a motion to dismiss. In September 2016, the district court denied the Network Defendants’ motion to dismiss the complaint, but granted such a motion for EMVCo and the Bank Defendants. In May 2017, the district court transferred the case to New York so that discovery could be coordinated with the U.S. merchant class interchange litigation described above. In August 2020, the district court issued an order granting the plaintiffs’ request for class certification. In January 2021, the Network Defendants’ request for permission to appeal the district court’s certification decision to the appellate court was denied. The plaintiffs have submitted expert reports that allege aggregate damages in excess of $1 billion against the four Network Defendants. The Network Defendants have submitted expert reports rebutting both liability and damages. Briefing on summary judgement is expected to occur in 2022. Telephone Consumer Protection Class Action Mastercard is a defendant in a Telephone Consumer Protection Act (“TCPA”) class action pending in Florida. The plaintiffs are individuals and businesses who allege that approximately 381,000 unsolicited faxes were sent to them advertising a Mastercard co-brand card issued by First Arkansas Bank (“FAB”). The TCPA provides for uncapped statutory damages of $500 per fax. Mastercard has asserted various defenses to the claims, and has notified FAB of an indemnity claim that it has (which FAB has disputed). In June 2018, the district court granted Mastercard’s motion to stay the proceedings until the Federal Communications Commission makes a decision on the application of the TCPA to online fax services. In December 2019, the FCC issued a declaratory ruling clarifying that the TCPA does not apply to faxes sent to online fax services that are received via e-mail. As a result of the ruling, the stay of the litigation was lifted in January 2020. In January 2021, the magistrate judge serving on the district court issued an opinion recommending that the district court judge deny plaintiffs’ class certification motion. In light of an appellate court decision, issued subsequent to the magistrate’s recommendation, the district court judge instructed the parties to re-brief the motion for class certification, and the motion has now been fully briefed. U.S. Federal Trade Commission Investigation In June 2020, the U.S. Federal Trade Commission’s Bureau of Competition (“FTC”) informed Mastercard that it has initiated a formal investigation into compliance with the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act. In particular, the investigation focuses on Mastercard’s compliance with the debit routing provisions of the Durbin Amendment. The FTC has issued a subpoena and Mastercard is cooperating with it in the investigation. U.K. Prepaid Cards Matter |
Settlement and Other Risk Manag
Settlement and Other Risk Management | 9 Months Ended |
Sep. 30, 2021 | |
Settlement and Other Risk Management [Abstract] | |
Settlement and Other Risk Management | Settlement and Other Risk Management Mastercard’s rules guarantee the settlement of many of the transactions between its customers (“settlement risk”). Settlement exposure is the settlement risk to customers under Mastercard’s rules due to the difference in timing between the payment transaction date and subsequent settlement. While the term and amount of the guarantee are unlimited, the duration of settlement exposure is short term and typically limited to a few days. Gross settlement exposure is estimated using the average daily payment volume during the three months prior to period end multiplied by the estimated number of days of exposure. The Company has global risk management policies and procedures, which include risk standards, to provide a framework for managing the Company’s settlement risk and exposure. In the event of a failed customer, Mastercard may pursue one or more remedies available under the Company’s rules to recover potential losses. Historically, the Company has experienced a low level of losses from customer failures. As part of its policies, Mastercard requires certain customers that are not in compliance with the Company’s risk standards to enter into risk mitigation arrangements, including cash collateral and/or other forms of credit enhancement such as letters of credit and guarantees. This requirement is based on a review of the individual risk circumstances for each customer. Mastercard monitors its credit risk portfolio on a regular basis and the adequacy of its risk mitigation arrangements. Additionally, from time to time, the Company reviews its risk management methodology and standards. As such, the amounts of estimated settlement exposure are revised as necessary. The Company’s estimated settlement exposure was as follows: September 30, December 31, (in millions) Gross settlement exposure $ 57,360 $ 52,360 Risk mitigation arrangements applied to settlement exposure (7,447) (6,021) Net settlement exposure $ 49,913 $ 46,339 |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Foreign Currency Derivatives [Abstract] | |
Foreign Exchange Risk Management | Derivative and Hedging Instruments The Company monitors and manages its foreign currency and interest rate exposures as part of its overall risk management program which focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. A primary objective of the Company’s risk management strategies is to reduce the financial impact that may arise from volatility in foreign currency exchange rates principally through the use of both foreign exchange derivative contracts and foreign currency denominated debt. In addition, the Company may enter into interest rate derivative contracts to manage the effects of interest rate movements on the Company’s aggregate liability portfolio, including potential future debt issuances. Cash Flow Hedges The Company may enter into foreign exchange derivative contracts, including forwards and options, to manage the impact of foreign currency variability on anticipated revenues and expenses, which fluctuate based on currencies other than the functional currency of the entity. The objective of these hedging activities is to reduce the effect of movement in foreign exchange rates for a portion of revenues and expenses forecasted to occur. As these contracts are designated as cash flow hedging instruments, gains and losses resulting from changes in fair value of these contracts are deferred in accumulated other comprehensive income (loss) and subsequently reclassified to the consolidated statement of operations when the underlying hedged transactions impact earnings. In addition, the Company may enter into interest rate derivative contracts to manage the effects of interest rate movements on the Company’s aggregate liability portfolio, including potential future debt issuances, and designate such derivatives as hedging instruments in a cash flow hedging relationship. In 2019, the Company entered into treasury rate locks which are accounted for as cash flow hedges. In the first quarter of 2020, in connection with the issuance of the 2020 USD Notes, these contracts were settled at a loss of $136 million after tax, in accumulated other comprehensive income (loss). As of September 30, 2021, a cumulative loss of $130 million, after tax, remains in accumulated other comprehensive income (loss) associated with these contracts and will be reclassified as an adjustment to interest expense over the respective terms of the 2020 USD Notes. Net Investment Hedges The Company may use foreign currency denominated debt and/or foreign exchange derivative contracts to hedge a portion of its net investment in foreign subsidiaries against adverse movements in exchange rates. The effective portion of the net investment hedge is recorded as a currency translation adjustment in accumulated other comprehensive income (loss). Forward points are designated as an excluded component and recognized in general and administrative expenses on the consolidated statement of operations over the hedge period. The amounts recognized in earnings related to forward points for the three and nine months ended September 30, 2021 were not material. In 2015, the Company designated its €1.65 billion euro-denominated debt as a net investment hedge for a portion of its net investment in its European operations. For the three and nine months ended September 30, 2021, the Company recorded pre-tax net foreign currency gains of $42 million and $102 million, respectively, in other comprehensive income (loss). As of September 30, 2021, the Company had a net foreign currency loss of $49 million after tax, in accumulated other comprehensive income (loss) associated with this hedging activity. Non-designated Derivatives The Company may also enter into foreign exchange derivative contracts to serve as economic hedges, such as to offset possible changes in the value of monetary assets and liabilities due to foreign exchange fluctuations, without designating these derivative contracts as hedging instruments. In addition, the Company is subject to foreign exchange risk as part of its daily settlement activities. This risk is typically limited to a few days between when a payment transaction takes place and the subsequent settlement with customers. To manage this risk, the Company may enter into short duration foreign exchange derivative contracts based upon anticipated receipts and disbursements for the respective currency position. The objective of these activities is to reduce the Company’s exposure to volatility arising from gains and losses resulting from fluctuations of foreign currencies against its functional currencies. Gains and losses resulting from changes in fair value of these contracts are recorded in general and administrative expenses on the consolidated statement of operations, net, along with the foreign currency gains and losses on monetary assets and liabilities. The following table summarizes the fair value of the Company’s derivative financial instruments and the related notional amounts: September 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value (in millions) Derivative assets: Derivatives designated as hedging instruments Foreign exchange contracts in a cash flow hedge 1 $ 116 $ 2 $ — $ — Foreign exchange contracts in a net investment hedge 1 2,044 61 — — Derivatives not designated as hedging instruments Foreign exchange contracts 1 540 5 483 19 Total Derivative Assets $ 2,700 $ 68 $ 483 $ 19 Derivative liabilities: Derivatives designated as hedging instruments Foreign exchange contracts in a cash flow hedge 2 $ 72 $ (1) $ — $ — Derivatives not designated as hedging instruments Foreign exchange contracts 2 76 (1) 1,016 (28) Total Derivative Liabilities $ 148 $ (2) $ 1,016 $ (28) 1. Foreign exchange derivative assets are recorded at fair value and included within prepaid expenses and other current assets on the consolidated balance sheet 2. Foreign exchange derivative liabilities are recorded at fair value and included within other current liabilities on the consolidated balance sheet The pre-tax gain (loss) related to the Company's derivative financial instruments designated as hedging instruments are as follows: Gain (Loss) Gain (Loss) Three Months Ended September 30, Location of Gain (Loss) Reclassified from AOCI into Earnings Three Months Ended September 30, 2021 2020 2021 2020 (in millions) (in millions) Derivative financial instruments in a cash flow hedge relationship: Foreign exchange contracts $ 2 $ — Net revenue $ — $ — Interest rate contracts $ — $ — Interest expense $ (1) $ (2) Derivative financial instruments in a net investment hedge relationship: Foreign exchange contracts $ 48 $ — Gain (Loss) Gain (Loss) Nine Months Ended September 30, Location of Gain (Loss) Reclassified from AOCI into Earnings Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) (in millions) Derivative financial instruments in a cash flow hedge relationship: Foreign exchange contracts $ 1 $ — Net revenue $ (1) $ — Interest rate contracts $ — $ (189) Interest expense $ (4) $ (3) Derivative financial instruments in a net investment hedge relationship: Foreign exchange contracts $ 60 $ — The Company estimates that $4 million, pre-tax, of the net deferred loss on cash flow hedges recorded in accumulated other comprehensive income (loss) at September 30, 2021 will be reclassified into the consolidated statement of operations within the next 12 months. The term of the foreign exchange derivative contracts designated in hedging relationships are generally less than 18 months. The amount of gain (loss) recognized on the consolidated statement of operations for non-designated derivative contracts is summarized below: Three Months Ended September 30, Nine Months Ended September 30, Derivatives not designated as hedging instruments: 2021 2020 2021 2020 (in millions) Foreign exchange derivative contracts General and administrative $ (2) $ (11) $ (5) $ 72 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization | Organization Mastercard Incorporated and its consolidated subsidiaries, including Mastercard International Incorporated (“Mastercard International” and together with Mastercard Incorporated, “Mastercard” or the “Company”), is a technology company in the global payments industry that connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide, enabling them to use electronic forms of payment instead of cash and checks. |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Mastercard and its majority-owned and controlled entities, including any variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Investments in VIEs for which the Company is not considered the primary beneficiary are not consolidated and are accounted for as equity method or measurement alternative method investments and recorded in other assets on the consolidated balance sheet. At September 30, 2021 and December 31, 2020, there were no significant VIEs which required consolidation and the investments were not considered material to the consolidated financial statements. The Company consolidates acquisitions as of the date on which the Company has obtained a controlling financial interest. Intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the 2021 presentation. The Company follows accounting principles generally accepted in the United States of America (“GAAP”). The balance sheet as of December 31, 2020 was derived from the audited consolidated financial statements as of December 31, 2020. The consolidated financial statements for the three and nine months ended September 30, 2021 and 2020 and as of September 30, 2021 are unaudited, and in the opinion of management, include all normal recurring adjustments that are necessary to present fairly the results for interim periods. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (“SEC”) requirements for Quarterly Reports on Form 10-Q. Reference should be made to Mastercard’s Annual Report on Form 10-K for the year ended December 31, 2020 for additional disclosures, including a summary of the Company’s significant accounting policies. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Therefore, the preliminary fair values set forth below use information available as of September 30, 2021 and are subject to adjustment as additional information is evaluated and the valuations are completed. The initial purchase price allocation, as of the acquisition dates, is noted below: (in millions) Assets: Cash and cash equivalents $ 228 Other current assets 33 Other intangible assets 1,917 Goodwill 2,695 Other assets 15 Total assets 4,888 Liabilities: Other current liabilities 91 Deferred income taxes 359 Other liabilities 11 Total liabilities 461 Net assets acquired $ 4,427 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the identified intangible assets acquired during the nine months ended September 30, 2021: Acquisition Date Fair Value Weighted-Average Useful Life (in millions) (in years) Developed technologies $ 366 12.3 Customer relationships 1,530 19.0 Other 21 8.0 Other intangible assets $ 1,917 17.6 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company’s disaggregated net revenue by source and geographic region were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Revenue by source: Domestic assessments $ 2,139 $ 1,750 $ 5,993 $ 4,907 Cross-border volume fees 1,276 791 3,284 2,645 Transaction processing 2,849 2,251 7,812 6,352 Other revenues 1,562 1,143 4,384 3,286 Gross revenue 7,826 5,935 21,473 17,190 Rebates and incentives (contra-revenue) (2,841) (2,098) (7,805) (6,009) Net revenue $ 4,985 $ 3,837 $ 13,668 $ 11,181 Net revenue by geographic region: North American Markets $ 1,707 $ 1,381 $ 4,803 $ 3,958 International Markets 3,218 2,419 8,715 7,094 Other 1 60 37 150 129 Net revenue $ 4,985 $ 3,837 $ 13,668 $ 11,181 1 Includes revenues managed by corporate functions. September 30, December 31, (in millions) Receivables from contracts with customers Accounts receivable $ 2,661 $ 2,505 Contract assets Prepaid expenses and other current assets 84 59 Other assets 365 245 Deferred revenue 1 Other current liabilities 416 355 Other liabilities 209 143 1 Revenue recognized from performance obligations satisfied during the three and nine months ended September 30, 2021 and 2020 was $180 million and $651 million and $289 million and $684 million, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share (“EPS”) for common shares were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions, except per share data) Numerator Net income $ 2,414 $ 1,513 $ 6,308 $ 4,626 Denominator Basic weighted-average shares outstanding 986 1,001 990 1,003 Dilutive stock options and stock units 4 4 4 5 Diluted weighted-average shares outstanding 1 990 1,005 994 1,008 Earnings per Share Basic $ 2.45 $ 1.51 $ 6.37 $ 4.61 Diluted $ 2.44 $ 1.51 $ 6.35 $ 4.59 1 For the periods presented, the calculation of diluted EPS excluded a minimal amount of anti-dilutive share-based payment awards. |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents reported on the consolidated balance sheet that total to the amounts shown on the consolidated statement of cash flows. September 30, December 31, (in millions) Cash and cash equivalents $ 6,406 $ 10,113 Restricted cash and restricted cash equivalents Restricted cash for litigation settlement 586 586 Restricted security deposits held for customers 1,832 1,696 Prepaid expenses and other current assets 17 24 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 8,841 $ 12,419 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments On the Consolidated Balance Sheet | Investments on the consolidated balance sheet consisted of the following: September 30, December 31, (in millions) Available-for-sale securities $ 335 $ 321 Held-to-maturity securities 175 162 Total investments $ 510 $ 483 |
Available-for-Sale Securities | The major classes of the Company’s available-for-sale investment securities and their respective amortized cost basis and fair values were as follows: September 30, 2021 December 31, 2020 Amortized Gross Gross Fair Amortized Gross Gross Fair (in millions) Municipal securities $ 3 $ — $ — $ 3 $ 10 $ — $ — $ 10 Government and agency securities 115 — — 115 64 — — 64 Corporate securities 216 1 — 217 246 1 — 247 Total $ 334 $ 1 $ — $ 335 $ 320 $ 1 $ — $ 321 |
Maturity Distribution Based on Contractual Terms of Investment Securities | The maturity distribution based on the contractual terms of the Company’s investment securities at September 30, 2021 was as follows: Available-For-Sale Amortized Cost Fair Value (in millions) Due within 1 year $ 149 $ 149 Due after 1 year through 5 years 185 186 Total $ 334 $ 335 |
Equity Investments | The following table is a summary of the activity related to the Company’s equity investments: Balance at December 31, 2020 Purchases Sales Changes in Fair Value 1 Other 2 Balance at September 30, 2021 (in millions) Marketable securities $ 476 $ — $ (165) $ 142 $ 33 $ 486 Nonmarketable securities 696 179 (20) 392 (49) 1,198 Total equity investments $ 1,172 $ 179 $ (185) $ 534 $ (16) $ 1,684 1 Recorded in gains (losses) on equity investments, net on the consolidated statement of operations. 2 Includes transfers between equity investment categories due to changes to the existence of readily determinable fair values and translational impact of currency. |
Nonmarketable securities | The following table sets forth the components of the Company’s Nonmarketable securities: September 30, December 31, (in millions) Measurement alternative 1 $ 953 $ 539 Equity method 245 157 Total Nonmarketable securities $ 1,198 $ 696 1 Cumulative im pairments and downward fair value adjustments on measurement alternative investments were $15 million and cumulative upward fair value adjustments were $396 million as of September 30, 2021. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |
Distribution of Financial Instruments, Measured at Fair Value on a Recurring Basis | The distribution of the Company’s financial instruments measured at fair value on a recurring basis within the Valuation Hierarchy were as follows: September 30, 2021 December 31, 2020 Quoted Prices Significant Significant Total Quoted Prices Significant Significant Total (in millions) Assets Investment securities available for sale 1 : Municipal securities $ — $ 3 $ — $ 3 $ — $ 10 $ — $ 10 Government and agency securities 36 79 — 115 26 38 — 64 Corporate securities — 217 — 217 — 247 — 247 Derivative instruments 2 : Foreign exchange contracts — 68 — 68 — 19 — 19 Marketable securities 3 : Equity securities 486 — — 486 476 — — 476 Deferred compensation plan 4 : Deferred compensation assets 85 — — 85 78 — — 78 Liabilities Derivative instruments 2 : Foreign exchange derivative liabilities $ — $ (2) $ — $ (2) $ — $ (28) $ — $ (28) Deferred compensation plan 5 : Deferred compensation liabilities (85) — — (85) (81) — — (81) 1 The Company’s U.S. government securities are classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices for identical assets in active markets. The fair value of the Company’s available-for-sale municipal securities, non-U.S. government and agency securities and corporate securities are based on observable inputs such as quoted prices, benchmark yields and issuer spreads for similar assets in active markets and are therefore included in Level 2 of the Valuation Hierarchy. 2 The Company’s foreign exchange derivative asset and liability contracts have been classified within Level 2 of the Valuation Hierarchy as the fair value is based on observable inputs such as broker quotes relating to foreign exchange for similar derivative instruments. See Note 17 (Derivative and Hedging Instruments) for further details. 3 The Company’s Marketable securities are publicly held and classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices in their respective active markets. 4 The Company has a nonqualified deferred compensation plan where assets are invested primarily in mutual funds held in a rabbi trust, which is restricted for payments to participants of the plan. The Company has elected to use the fair value option for these mutual funds, which are measured using quoted prices of identical instruments in active markets and are included in prepaid expenses and other current assets on the consolidated balance sheet. |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: September 30, December 31, (in millions) Customer and merchant incentives $ 1,289 $ 1,086 Prepaid income taxes 173 78 Other 905 719 Total prepaid expenses and other current assets $ 2,367 $ 1,883 |
Schedule of Other Assets, Noncurrent | Other assets consisted of the following: September 30, December 31, (in millions) Customer and merchant incentives $ 3,732 $ 3,220 Equity investments 1,684 1,172 Income taxes receivable 609 553 Other 542 420 Total other assets $ 6,567 $ 5,365 |
Accrued Expenses and Accrued _2
Accrued Expenses and Accrued Litigation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: September 30, December 31, (in millions) Customer and merchant incentives $ 4,247 $ 3,998 Personnel costs 836 727 Income and other taxes 392 208 Other 489 497 Total accrued expenses $ 5,964 $ 5,430 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following: September 30, December 31, Effective (in millions) 2021 USD Notes 1.900 % Senior Notes due March 2031 $ 600 $ — 1.981 % 2.950 % Senior Notes due March 2051 700 — 3.013 % 2020 USD Notes 3.300 % Senior Notes due March 2027 1,000 1,000 3.420 % 3.350 % Senior Notes due March 2030 1,500 1,500 3.430 % 3.850 % Senior Notes due March 2050 1,500 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 EUR Notes 1 1.100 % Senior Notes due December 2022 815 859 1.265 % 2.100 % Senior Notes due December 2027 932 982 2.189 % 2.500 % Senior Notes due December 2030 175 184 2.562 % 2014 USD Notes 3.375 % Senior Notes due April 2024 1,000 1,000 3.484 % 13,972 12,775 Less: Unamortized discount and debt issuance costs (111) (103) Total debt outstanding 13,861 12,672 Less: Current portion 2 (650) (649) Long-term debt $ 13,211 $ 12,023 1 €1.650 billion euro-denominated debt issued in December 2015. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of quarterly cash dividends declared | The Company declared quarterly cash dividends on its Class A and Class B Common Stock during the three and nine months ended September 30, 2021 and 2020 as summarized below: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions, except per share data) Dividends declared per share $ 0.44 $ 0.40 $ 1.32 $ 1.20 Total dividends declared $ 433 $ 398 $ 1,301 $ 1,202 |
Schedule of Changes in Common Stock Outstanding | The following table presents the changes in the Company’s outstanding Class A and Class B common stock for the nine months ended September 30, 2021: Outstanding Shares Class A Class B (in millions) Balance at December 31, 2020 986.9 8.3 Purchases of treasury stock (12.8) — Share-based payments 1.2 — Conversion of Class B to Class A common stock 0.4 (0.4) Balance at September 30, 2021 975.7 7.9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2021 and 2020 were as follows: December 31, 2020 Increase / (Decrease) Reclassifications September 30, 2021 (in millions) Foreign currency translation adjustments 1 $ (352) $ (241) $ — $ (593) Translation adjustments on net investment hedges 2 (175) 126 — (49) Cash flow hedges Foreign exchange contracts 3 — 1 1 2 Interest rate contracts 4 (133) — 3 (130) Defined benefit pension and other postretirement plans (20) — (1) (21) Investment securities available-for-sale — — — — Accumulated Other Comprehensive Income (Loss) $ (680) $ (114) $ 3 $ (791) December 31, 2019 Increase / (Decrease) Reclassifications September 30, 2020 (in millions) Foreign currency translation adjustments 1 $ (638) $ 4 $ — $ (634) Translation adjustments on net investment hedges 2 (38) (64) — (102) Cash flow hedges Interest rate contracts 4 11 (147) 2 (134) Defined benefit pension and other postretirement plans (9) — (1) (10) Investment securities available-for-sale 1 (1) — — Accumulated Other Comprehensive Income (Loss) $ (673) $ (208) $ 1 $ (880) 1. During the nine months ended September 30, 2021, t he increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the depreciation of the euro against the U.S. dollar. During the nine months ended September 30, 2020, foreign currency translation adjustments were not material. 2. During the nine months ended September 30, 2021, t he decrease i n the accumulated other comprehensive loss related to the net investment hedges was driven by the depreciation of the euro against the U.S. dollar. Du ring the nine months ended September 30, 2020, the increase in the accumulated other comprehensive loss related to the net investment hedges was driven by the appreciation of the euro against the U.S. dollar. See Note 17 (Derivative and Hedging Instruments) for additional information. 3. Beginning in 2021, certain foreign exchange derivative contracts are designated as cash flow hedging instruments. Gains and losses resulting from changes in the fair value of these contracts are deferred in accumulated other comprehensive income (loss) and subsequently reclassified to the consolidated statement of operations when the underlying hedged transactions impact earnings. See Note 17 (Derivative and Hedging Instruments) for additional information. 4. In 2019, the Company entered into treasury rate locks which are accounted for as cash flow hedges. In the first quarter of 2020, in connection with the issuance of the 2020 USD Notes, these contracts were settled for a loss of $175 million, or $136 million net of tax, recorded in accumulated other comprehensive income (loss). The cumulative loss will be reclassified as an adjustment to interest expense over the respective terms of the 2020 USD Notes. See Note 17 (Derivative and Hedging Instruments) for additional information. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | During the nine months ended September 30, 2021, the Company granted the following awards under the Mastercard Incorporated 2006 Long Term Incentive Plan, as amended and restated as of June 5, 2012 (the “LTIP”). The LTIP is a stockholder-approved plan that permits the grant of various types of equity awards to employees. Grants in 2021 Weighted-Average (in millions) (per option/unit) Non-qualified stock options 0.3 $ 92 Restricted stock units 0.8 358 Performance stock units 0.2 385 |
Settlement and Other Risk Man_2
Settlement and Other Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Settlement and Other Risk Management [Abstract] | |
Estimated Settlement Exposure and Portion of Uncollateralized Settlement Exposure for Mastercard-Branded Transactions | The Company’s estimated settlement exposure was as follows: September 30, December 31, (in millions) Gross settlement exposure $ 57,360 $ 52,360 Risk mitigation arrangements applied to settlement exposure (7,447) (6,021) Net settlement exposure $ 49,913 $ 46,339 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Foreign Currency Derivatives [Abstract] | |
Fair value of Company's derivative financial instruments | The following table summarizes the fair value of the Company’s derivative financial instruments and the related notional amounts: September 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value (in millions) Derivative assets: Derivatives designated as hedging instruments Foreign exchange contracts in a cash flow hedge 1 $ 116 $ 2 $ — $ — Foreign exchange contracts in a net investment hedge 1 2,044 61 — — Derivatives not designated as hedging instruments Foreign exchange contracts 1 540 5 483 19 Total Derivative Assets $ 2,700 $ 68 $ 483 $ 19 Derivative liabilities: Derivatives designated as hedging instruments Foreign exchange contracts in a cash flow hedge 2 $ 72 $ (1) $ — $ — Derivatives not designated as hedging instruments Foreign exchange contracts 2 76 (1) 1,016 (28) Total Derivative Liabilities $ 148 $ (2) $ 1,016 $ (28) 1. Foreign exchange derivative assets are recorded at fair value and included within prepaid expenses and other current assets on the consolidated balance sheet 2. Foreign exchange derivative liabilities are recorded at fair value and included within other current liabilities on the consolidated balance sheet |
Gain (loss) related to the Company's derivative financial instruments designated as hedging instruments | The pre-tax gain (loss) related to the Company's derivative financial instruments designated as hedging instruments are as follows: Gain (Loss) Gain (Loss) Three Months Ended September 30, Location of Gain (Loss) Reclassified from AOCI into Earnings Three Months Ended September 30, 2021 2020 2021 2020 (in millions) (in millions) Derivative financial instruments in a cash flow hedge relationship: Foreign exchange contracts $ 2 $ — Net revenue $ — $ — Interest rate contracts $ — $ — Interest expense $ (1) $ (2) Derivative financial instruments in a net investment hedge relationship: Foreign exchange contracts $ 48 $ — Gain (Loss) Gain (Loss) Nine Months Ended September 30, Location of Gain (Loss) Reclassified from AOCI into Earnings Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) (in millions) Derivative financial instruments in a cash flow hedge relationship: Foreign exchange contracts $ 1 $ — Net revenue $ (1) $ — Interest rate contracts $ — $ (189) Interest expense $ (4) $ (3) Derivative financial instruments in a net investment hedge relationship: Foreign exchange contracts $ 60 $ — |
Gain (loss) recognized in income for the contracts to purchase and sell foreign currency summary | The amount of gain (loss) recognized on the consolidated statement of operations for non-designated derivative contracts is summarized below: Three Months Ended September 30, Nine Months Ended September 30, Derivatives not designated as hedging instruments: 2021 2020 2021 2020 (in millions) Foreign exchange derivative contracts General and administrative $ (2) $ (11) $ (5) $ 72 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) € in Millions, $ in Millions | Sep. 30, 2021USD ($) | Jun. 09, 2021USD ($) | Mar. 05, 2021USD ($) | Mar. 05, 2021EUR (€) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||||
Cash payment to acquire businesses | $ 4,400 | |||||
Total consideration | 266 | |||||
Goodwill | $ 7,569 | $ 7,569 | $ 4,960 | |||
Nets Denmark A/S, Corporate Services | ||||||
Business Acquisition [Line Items] | ||||||
Cash payment to acquire businesses | $ 3,600 | € 3,000 | ||||
Total consideration | € | € 2,850 | |||||
Goodwill | 2,100 | |||||
Goodwill expected to be tax deductible | $ 800 | |||||
Ekata Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Cash payment to acquire businesses | $ 861 | |||||
Total consideration | $ 850 | |||||
Interests acquired (percent) | 100.00% | |||||
2020 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 1,100 | |||||
Finalized purchase accounting adjustments | $ 185 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Goodwill | $ 7,569 | $ 4,960 |
Nets and Ekata acquisitions | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 228 | |
Other current assets | 33 | |
Other intangible assets | 1,917 | |
Goodwill | 2,695 | |
Other assets | 15 | |
Total assets | 4,888 | |
Other current liabilities | 91 | |
Deferred income taxes | 359 | |
Other liabilities | 11 | |
Total liabilities | 461 | |
Net assets acquired | $ 4,427 |
Acquisitions - Identifiable Int
Acquisitions - Identifiable Intangible Assets (Details) - Nets and Ekata acquisitions $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Business Acquisition [Line Items] | |
Other intangible assets | $ 1,917 |
Weighted-Average Useful Life | 17 years 7 months 6 days |
Developed Technology Rights | |
Business Acquisition [Line Items] | |
Other intangible assets | $ 366 |
Weighted-Average Useful Life | 12 years 3 months 18 days |
Customer Relationships | |
Business Acquisition [Line Items] | |
Other intangible assets | $ 1,530 |
Weighted-Average Useful Life | 19 years |
Other Intangible Assets | |
Business Acquisition [Line Items] | |
Other intangible assets | $ 21 |
Weighted-Average Useful Life | 8 years |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Gross revenue | $ 7,826 | $ 5,935 | $ 21,473 | $ 17,190 |
Rebates and incentives (contra-revenue) | (2,841) | (2,098) | (7,805) | (6,009) |
Net revenue | 4,985 | 3,837 | 13,668 | 11,181 |
North American Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,707 | 1,381 | 4,803 | 3,958 |
International Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 3,218 | 2,419 | 8,715 | 7,094 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 60 | 37 | 150 | 129 |
Domestic assessments | ||||
Disaggregation of Revenue [Line Items] | ||||
Gross revenue | 2,139 | 1,750 | 5,993 | 4,907 |
Cross-border volume fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Gross revenue | 1,276 | 791 | 3,284 | 2,645 |
Transaction processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Gross revenue | 2,849 | 2,251 | 7,812 | 6,352 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Gross revenue | $ 1,562 | $ 1,143 | $ 4,384 | $ 3,286 |
Revenue - Location on Balance S
Revenue - Location on Balance Sheet of Amounts Recognized From Contracts With Customers (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables from contracts with customers | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 2,661 | $ 2,505 |
Prepaid Expenses and Other Current Assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 84 | 59 |
Other Assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 365 | 245 |
Other current liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 416 | 355 |
Other Liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 209 | $ 143 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized from performance obligations | $ 180 | $ 289 | $ 651 | $ 684 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator | ||||
Net income | $ 2,414 | $ 1,513 | $ 6,308 | $ 4,626 |
Denominator | ||||
Basic weighted-average shares outstanding (in shares) | 986 | 1,001 | 990 | 1,003 |
Diluted weighted-average shares outstanding (in shares) | 4 | 4 | 4 | 5 |
Diluted weighted-average shares outstanding (in shares) | 990 | 1,005 | 994 | 1,008 |
Earnings per Share | ||||
Basic (in dollars per share) | $ 2.45 | $ 1.51 | $ 6.37 | $ 4.61 |
Diluted (in dollars per share) | $ 2.44 | $ 1.51 | $ 6.35 | $ 4.59 |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 6,406 | $ 10,113 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 8,841 | 12,419 | $ 12,404 | $ 8,969 |
Restricted cash for litigation settlement | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | 586 | 586 | ||
Restricted security deposits held for customers | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | 1,832 | 1,696 | ||
Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | $ 17 | $ 24 |
Investments - Investments (Deta
Investments - Investments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Fair Value | $ 335 | $ 321 |
Held-to-maturity securities | 175 | 162 |
Total investments | $ 510 | $ 483 |
Investments - Available-for-Sal
Investments - Available-for-Sale Investment Securities, Unrealized Gains and Losses (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 334 | $ 320 |
Gross Unrealized Gain | 1 | 1 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 335 | 321 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3 | 10 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 3 | 10 |
Government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 115 | 64 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 115 | 64 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 216 | 246 |
Gross Unrealized Gain | 1 | 1 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | $ 217 | $ 247 |
Investments - Maturity Distribu
Investments - Maturity Distribution Based on Contractual Terms of Investment Securities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Available-For-Sale Amortized Cost | ||
Due within 1 year | $ 149 | |
Due after 1 year through 5 years | 185 | |
Amortized Cost | 334 | $ 320 |
Available-For-Sale Fair Value | ||
Due within 1 year | 149 | |
Due after 1 year through 5 years | 186 | |
Total | $ 335 | $ 321 |
Investments - Equity Investment
Investments - Equity Investments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) In Equity Investments [Roll Forward] | ||
Marketable securities, beginning balance | $ 476 | |
Marketable securities, Purchases | 0 | |
Marketable securities, Sales | (165) | |
Marketable securities, Changes in Fair Value | 142 | |
Marketable Securities, Other | 33 | |
Marketable securities, ending balance | 486 | |
Nonmarketable securities, beginning balance | 696 | |
Nonmarketable Securities, Purchases | 179 | |
Nonmarketable Securities, Sales | (20) | |
Nonmarketable Securities, Changes in Fair Value | 392 | |
Nonmarketable Securities, Other | (49) | |
Nonmarketable securities, ending balance | 1,198 | |
Total equity investments, beginning balance | 1,172 | |
Total equity investments, Purchases | 179 | |
Total equity investments, Sales | (185) | $ 0 |
Total equity investments, Changes in Fair Value | 534 | |
Total equity investments, Other | (16) | |
Total equity investments, ending balance | $ 1,684 |
Investments - Components of Non
Investments - Components of Nonmarketable securities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Marketable Securities [Abstract] | ||
Measurement alternative | $ 953 | $ 539 |
Equity method | 245 | 157 |
Total Nonmarketable securities | 1,198 | $ 696 |
Cumulative impairments and downward fair value adjustment | 15 | |
Cumulative upward fair value adjustment | $ 396 |
Fair Value Measurements - Distr
Fair Value Measurements - Distribution of Financial Instruments, Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Deferred compensation assets | $ 85 | $ 78 |
Foreign exchange derivative liabilities | (2) | (28) |
Deferred compensation liabilities | (85) | (81) |
Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Deferred compensation assets | 85 | 78 |
Foreign exchange derivative liabilities | 0 | 0 |
Deferred compensation liabilities | (85) | (81) |
Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Foreign exchange derivative liabilities | (2) | (28) |
Deferred compensation liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Foreign exchange derivative liabilities | 0 | 0 |
Deferred compensation liabilities | 0 | 0 |
Municipal securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 3 | 10 |
Municipal securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Municipal securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 3 | 10 |
Municipal securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Government and agency securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 115 | 64 |
Government and agency securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 36 | 26 |
Government and agency securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 79 | 38 |
Government and agency securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Corporate securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 217 | 247 |
Corporate securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Corporate securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 217 | 247 |
Corporate securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Equity securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 486 | 476 |
Equity securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 486 | 476 |
Equity securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Equity securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Foreign exchange contracts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instrument | 68 | 19 |
Foreign exchange contracts | Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instrument | 0 | 0 |
Foreign exchange contracts | Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instrument | 68 | 19 |
Foreign exchange contracts | Fair Value, Inputs, Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instrument | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, Long-term and Short-term, Combined Amount | $ 13,861 | $ 12,672 |
Long-term debt | 13,211 | 12,023 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 15,300 | $ 14,800 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets - Schedule of Prepaid Expenses (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Prepaid Expense and Other Assets [Abstract] | ||
Customer and merchant incentives | $ 1,289 | $ 1,086 |
Prepaid income taxes | 173 | 78 |
Other | 905 | 719 |
Total prepaid expenses and other current assets | $ 2,367 | $ 1,883 |
Prepaid Expenses and Other As_4
Prepaid Expenses and Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Prepaid Expense and Other Assets [Abstract] | ||
Customer and merchant incentives | $ 3,732 | $ 3,220 |
Equity investments | 1,684 | 1,172 |
Income taxes receivable | 609 | 553 |
Other | 542 | 420 |
Total other assets | $ 6,567 | $ 5,365 |
Accrued Expenses and Accrued _3
Accrued Expenses and Accrued Litigation - Accrued Expenses (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Customer and merchant incentives | $ 4,247 | $ 3,998 |
Personnel costs | 836 | 727 |
Income and other taxes | 392 | 208 |
Other | 489 | 497 |
Total accrued expenses | $ 5,964 | $ 5,430 |
Accrued Expenses and Accrued _4
Accrued Expenses and Accrued Litigation - Accrued Litigation Expense (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Provision for litigation | $ 838 | $ 842 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) € in Millions, $ in Millions | 1 Months Ended | |||
Oct. 28, 2021USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2015EUR (€) | |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 13,972 | $ 12,775 | ||
Less: Unamortized discount and debt issuance costs | (111) | (103) | ||
Total debt outstanding | 13,861 | 12,672 | ||
Less: current portion | (650) | (649) | ||
Long-term debt | $ 13,211 | 12,023 | ||
Senior Notes | 2031 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 1.90% | |||
Effective Interest Rate | 1.981% | |||
Long-term debt, gross | $ 600 | 0 | ||
Senior Notes | 2051 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 2.95% | |||
Effective Interest Rate | 3.013% | |||
Long-term debt, gross | $ 700 | 0 | ||
Senior Notes | 2027 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.30% | |||
Effective Interest Rate | 3.42% | |||
Long-term debt, gross | $ 1,000 | 1,000 | ||
Senior Notes | 2030 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.35% | |||
Effective Interest Rate | 3.43% | |||
Long-term debt, gross | $ 1,500 | 1,500 | ||
Senior Notes | Senior Notes Due March 2050 | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.85% | |||
Effective Interest Rate | 3.896% | |||
Long-term debt, gross | $ 1,500 | 1,500 | ||
Senior Notes | 2029 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 2.95% | |||
Effective Interest Rate | 3.03% | |||
Long-term debt, gross | $ 1,000 | 1,000 | ||
Senior Notes | 2049 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.65% | |||
Effective Interest Rate | 3.689% | |||
Long-term debt, gross | $ 1,000 | 1,000 | ||
Senior Notes | 2025 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 2.00% | |||
Effective Interest Rate | 2.147% | |||
Long-term debt, gross | $ 750 | 750 | ||
Senior Notes | 2028 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.50% | |||
Effective Interest Rate | 3.598% | |||
Long-term debt, gross | $ 500 | 500 | ||
Senior Notes | 2048 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.95% | |||
Effective Interest Rate | 3.99% | |||
Long-term debt, gross | $ 500 | 500 | ||
Senior Notes | 2021 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 2.00% | |||
Effective Interest Rate | 2.236% | |||
Long-term debt, gross | $ 650 | 650 | ||
Senior Notes | 2021 Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Repayments of Long-term Debt | $ 650 | |||
Senior Notes | 2026 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 2.95% | |||
Effective Interest Rate | 3.044% | |||
Long-term debt, gross | $ 750 | 750 | ||
Senior Notes | 2046 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.80% | |||
Effective Interest Rate | 3.893% | |||
Long-term debt, gross | $ 600 | 600 | ||
Senior Notes | 2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 1.10% | |||
Effective Interest Rate | 1.265% | |||
Long-term debt, gross | $ 815 | 859 | ||
Senior Notes | 2.1% Notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 2.10% | |||
Effective Interest Rate | 2.189% | |||
Long-term debt, gross | $ 932 | 982 | ||
Senior Notes | 2.5% Notes due 2030 | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 2.50% | |||
Effective Interest Rate | 2.562% | |||
Long-term debt, gross | $ 175 | 184 | ||
Senior Notes | 2024 Notes | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.375% | |||
Effective Interest Rate | 3.484% | |||
Long-term debt, gross | $ 1,000 | $ 1,000 | ||
Senior Notes | 2015 Euro Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | € | € 1,650 |
Debt - Narrative (Details)
Debt - Narrative (Details) - Senior Notes $ in Millions | 1 Months Ended |
Mar. 31, 2021USD ($) | |
2031 Notes | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 600 |
2051 Notes | |
Debt Instrument [Line Items] | |
Aggregate principal amount | 700 |
2031 and 2051 Notes | |
Debt Instrument [Line Items] | |
Proceeds from issuance of debt | $ 1,282 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Dividends Payable [Line Items] | ||||
Total dividends declared | $ 433 | $ 398 | $ 1,301 | $ 1,202 |
Common Stock | ||||
Dividends Payable [Line Items] | ||||
Dividends declared per share | $ 0.44 | $ 0.40 | $ 1.32 | $ 1.20 |
Retained Earnings | ||||
Dividends Payable [Line Items] | ||||
Total dividends declared | $ 433 | $ 398 | $ 1,301 | $ 1,202 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Shares Activity (Details) shares in Millions | 9 Months Ended |
Sep. 30, 2021shares | |
Class of Stock | |
Purchases of treasury stock | (12.8) |
Common Stock | Class A | |
Class of Stock | |
Balance at December 31, 2020 | 986.9 |
Purchases of treasury stock | (12.8) |
Share-based payments | 1.2 |
Conversion of Class B to Class A common stock | 0.4 |
Balance at September 30, 2021 | 975.7 |
Common Stock | Class B | |
Class of Stock | |
Balance at December 31, 2020 | 8.3 |
Purchases of treasury stock | 0 |
Share-based payments | 0 |
Conversion of Class B to Class A common stock | (0.4) |
Balance at September 30, 2021 | 7.9 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | 12.8 | ||
Dollar value of shares repurchased during period | $ 4,600 | ||
Average price paid per share | $ 360.87 | ||
Remaining authorization | $ 5,200 | ||
December 2020 Share Repurchase Plan | Class A Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amounts under stock repurchase program | $ 6,000 | ||
December 2019 Share Repurchase Plan | Class A Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amounts under stock repurchase program | $ 8,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 6,540 | $ 6,498 | $ 5,917 | $ 6,488 | $ 5,917 |
Balance at end of period | 6,773 | 5,856 | 6,773 | 5,856 | |
Foreign currency translation adjustments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (638) | (352) | (638) | ||
Increase / (Decrease) | (241) | 4 | |||
Reclassifications | 0 | 0 | |||
Balance at end of period | (593) | (634) | (593) | (634) | |
Translation adjustments on net investment hedge | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (38) | (175) | (38) | ||
Increase / (Decrease) | 126 | (64) | |||
Reclassifications | 0 | 0 | |||
Balance at end of period | (49) | (102) | (49) | (102) | |
Defined benefit pension and other postretirement plans | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (9) | (20) | (9) | ||
Increase / (Decrease) | 0 | 0 | |||
Reclassifications | (1) | (1) | |||
Balance at end of period | (21) | (10) | (21) | (10) | |
Investment securities available-for-sale | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 1 | 0 | 1 | ||
Increase / (Decrease) | 0 | (1) | |||
Reclassifications | 0 | 0 | |||
Balance at end of period | 0 | 0 | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (673) | (680) | (673) | ||
Increase / (Decrease) | (114) | (208) | |||
Reclassifications | 3 | 1 | |||
Balance at end of period | (791) | (880) | (791) | (880) | |
Foreign exchange contracts | Cash flow hedges | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 0 | ||||
Increase / (Decrease) | 1 | ||||
Reclassifications | 1 | ||||
Balance at end of period | 2 | 2 | |||
Interest rate contracts | Cash flow hedges | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 11 | (133) | 11 | ||
Increase / (Decrease) | 0 | (147) | |||
Reclassifications | 3 | 2 | |||
Balance at end of period | $ (130) | $ (134) | $ (130) | $ (134) | |
Cash Flow Hedging | Interest Rate Risk | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Gain (loss) on contracts to purchase and sell foreign currency, pre-tax | (175) | ||||
Gain (loss) for contracts to purchase and sell foreign currency | $ (136) |
Share-Based Payments - Types of
Share-Based Payments - Types of Equity Awards (Details) shares in Millions | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-Based Payments | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0.3 |
Fair value of stock options, per share, estimated using a Black-Scholes option pricing model | $ / shares | $ 92 |
Restricted stock units | |
Share-Based Payments | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 0.8 |
Share-Based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted-Average Grant-Date Fair Value | $ / shares | $ 358 |
Performance stock units | |
Share-Based Payments | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 0.2 |
Share-Based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted-Average Grant-Date Fair Value | $ / shares | $ 385 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021installment | |
Share-Based Payments | |
Share-Based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years |
Share-Based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 26.10% |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 1 year |
Non-qualified stock options | |
Share-Based Payments | |
Share-based Compensation Arrangement By Share-based Payment Award, Number Of Equal Annual Installments | 4 |
Share-Based Compensation Arrangement By Share-based Payment Award Options Term | 10 years |
Restricted stock units | |
Share-Based Payments | |
Share-based Compensation Arrangement By Share-based Payment Award, Number Of Equal Annual Installments | 4 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 1 year |
Performance stock units | |
Share-Based Payments | |
Share-Based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
PSUs granted on or after March 1, 2019, shares issuable upon vesting, mandatory deferral period | 1 year |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (as a percent) | 14.30% | 21.00% | 15.70% | 17.30% |
Legal and Regulatory Proceedi_2
Legal and Regulatory Proceedings (Details) £ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 18 Months Ended | ||||||||||||
Mar. 31, 2021GBP (£) | Sep. 30, 2019USD ($) | Jul. 31, 2018claimant | Jan. 31, 2017claimant | Mar. 31, 2016USD ($)claimant | Oct. 31, 2011plaintiff | Feb. 28, 2011 | Sep. 30, 2021USD ($)claimant | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)claimantfax | Sep. 30, 2021GBP (£)fax | Sep. 30, 2020USD ($) | Jun. 30, 2018claimant | Sep. 30, 2021GBP (£)claimant | Jul. 31, 2019 | |
Legal And Regulatory | ||||||||||||||||
Accrued litigation | $ 838,000,000 | $ 842,000,000 | $ 838,000,000 | |||||||||||||
Restricted cash for litigation settlement | 586,000,000 | 586,000,000 | 586,000,000 | |||||||||||||
Provision for litigation | 27,000,000 | $ 0 | $ 94,000,000 | $ 28,000,000 | ||||||||||||
Unsolicited faxes | fax | 381,000 | 381,000 | ||||||||||||||
Damages sought per fax (in usd per fax) | $ 500 | |||||||||||||||
Event Involving Visa Parties, Member Banks and Mastercard | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Percent of settlement Mastercard would pay | 12.00% | |||||||||||||||
Event Involving Member Banks and Mastercard | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Percent of settlement Mastercard would pay | 36.00% | |||||||||||||||
U.S. Merchant Lawsuit Settlement | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Accrued litigation | 783,000,000 | 783,000,000 | $ 783,000,000 | |||||||||||||
Maximum | U.S. Merchant Litigation - Class Litigation | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Percentage of merchant opt outs to terminate agreement | 25.00% | |||||||||||||||
U.K. Merchant Lawsuit Settlement | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Provision for litigation | $ 27,000,000 | |||||||||||||||
U.K. Merchant claimants | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Number of plaintiffs in case | claimant | 4 | 10 | ||||||||||||||
U.K. Merchant claimants | U.K. Merchant Claims, Sent Back to Trial Court, Damages Issues | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Number of pending claims | claimant | 3 | 3 | 3 | |||||||||||||
Proposed U.K. Interchange Collective Action | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Amount of damages sought (that exceeds) | $ 19,000,000,000 | £ 14,000 | ||||||||||||||
ATM Operators Complaint | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Amount of damages sought (that exceeds) | $ 1,000,000,000 | |||||||||||||||
Number of plaintiffs in case | plaintiff | 13 | |||||||||||||||
U.S. Liability Shift Litigation | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Amount of damages sought (that exceeds) | $ 1,000,000,000 | |||||||||||||||
Number of pending claims | claimant | 4 | |||||||||||||||
U.K. Prepaid Cards Matter | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Maximum fine agreed to be paid | £ | £ 32 | |||||||||||||||
Litigation charge recorded | $ 45,000,000 | |||||||||||||||
Judicial Ruling | 2017 U.K. Merchant Claimants | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Number of claims settled | claimant | 3 | |||||||||||||||
Judicial Ruling | 2017 U.K. Merchant Claimants | Unfavorable Regulatory Action | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Number of claims settled | claimant | 2 | |||||||||||||||
Judicial Ruling | 2016 U.K. Merchant Claimants | Unfavorable Regulatory Action | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Number of claims settled | claimant | 1 | |||||||||||||||
Appealing judgment | U.K. Merchant claimants | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Number of claims settled | claimant | 3 | |||||||||||||||
Unresolved | U.K. Merchant Lawsuit Settlement | ||||||||||||||||
Legal And Regulatory | ||||||||||||||||
Unresolved damages claims | $ 1,200,000,000 | $ 1,200,000,000 | £ 1,000 |
Settlement and Other Risk Man_3
Settlement and Other Risk Management - Estimated Settlement Exposure (Details) - Guarantee Obligations - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Risks Inherent in Servicing Assets and Servicing Liabilities | ||
Gross settlement exposure | $ 57,360 | $ 52,360 |
Risk mitigation arrangements applied to settlement exposure | (7,447) | (6,021) |
Net settlement exposure | $ 49,913 | $ 46,339 |
Settlement and Other Risk Man_4
Settlement and Other Risk Management - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Settlement and Other Risk Management [Abstract] | ||
Travelers cheques outstanding, notional value | $ 363 | $ 370 |
Travelers cheques covered by collateral arrangements | $ 288 | $ 294 |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2015EUR (€) | |
Foreign Exchange Risk Management | |||||||
Notional amount designated | $ 148 | $ 148 | $ 1,016 | ||||
Unrealized gain (loss) on net investment hedges, before tax | 48 | $ 0 | 60 | $ 0 | |||
Euro-Denominated Debt | |||||||
Foreign Exchange Risk Management | |||||||
Unrealized gain (loss) on net investment hedges, before tax | 42 | 102 | |||||
Cash Flow Hedging | Interest Rate Risk | |||||||
Foreign Exchange Risk Management | |||||||
Gain (loss) for contracts to purchase and sell foreign currency | $ (136) | ||||||
Unrealized gain (loss) on cash flow hedges, net of tax | (130) | ||||||
Estimated amount to be reclassified into interest expense within next 12 months | $ 4 | ||||||
Terms of the foreign currency forward contracts and foreign currency option contracts, less than | 18 months | ||||||
Net Investment Hedging | Euro-Denominated Debt | |||||||
Foreign Exchange Risk Management | |||||||
Notional amount designated | € | € 1,650 | ||||||
Net foreign currency transaction pre-tax loss in AOCI | $ 49 | $ 49 |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments - Fair Value of Company's Derivative Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Foreign Exchange Risk Management | ||
Derivative asset notional amount | $ 2,700 | $ 483 |
Derivative asset fair value | 68 | 19 |
Derivative liability notional amount | 148 | 1,016 |
Derivative liability fair value | (2) | (28) |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Prepaid Expenses and Other Current Assets | ||
Foreign Exchange Risk Management | ||
Derivative asset notional amount | 540 | 483 |
Derivative asset fair value | 5 | 19 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other current liabilities | ||
Foreign Exchange Risk Management | ||
Derivative liability notional amount | 76 | 1,016 |
Derivative liability fair value | (1) | (28) |
Cash Flow Hedging | Derivatives designated as hedging instruments | Foreign exchange contracts | Prepaid Expenses and Other Current Assets | ||
Foreign Exchange Risk Management | ||
Derivative asset notional amount | 116 | 0 |
Derivative asset fair value | 2 | 0 |
Cash Flow Hedging | Derivatives designated as hedging instruments | Foreign exchange contracts | Other current liabilities | ||
Foreign Exchange Risk Management | ||
Derivative liability notional amount | 72 | 0 |
Derivative liability fair value | (1) | 0 |
Net Investment Hedging | Derivatives designated as hedging instruments | Foreign exchange contracts | Prepaid Expenses and Other Current Assets | ||
Foreign Exchange Risk Management | ||
Derivative asset notional amount | 2,044 | 0 |
Derivative asset fair value | $ 61 | $ 0 |
Derivative and Hedging Instru_5
Derivative and Hedging Instruments - Gain (Loss) Related to the Company's Derivative Financial Instruments Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Foreign Exchange Risk Management | ||||
Unrealized gain (loss) on cash flow hedges, before tax | $ 2 | $ 0 | $ 1 | $ (189) |
Realized gain (loss) on cash flow hedges reclassified from AOCI | (1) | (2) | (5) | (3) |
Unrealized gain (loss) on net investment hedges, before tax | 48 | 0 | 60 | 0 |
Foreign exchange contracts | ||||
Foreign Exchange Risk Management | ||||
Unrealized gain (loss) on cash flow hedges, before tax | 2 | 0 | 1 | 0 |
Foreign exchange contracts | Net revenue | ||||
Foreign Exchange Risk Management | ||||
Realized gain (loss) on cash flow hedges reclassified from AOCI | 0 | 0 | (1) | 0 |
Interest rate contracts | ||||
Foreign Exchange Risk Management | ||||
Unrealized gain (loss) on cash flow hedges, before tax | 0 | 0 | 0 | (189) |
Interest rate contracts | Interest expense | ||||
Foreign Exchange Risk Management | ||||
Realized gain (loss) on cash flow hedges reclassified from AOCI | $ (1) | $ (2) | $ (4) | $ (3) |
Derivative and Hedging Instru_6
Derivative and Hedging Instruments - Gain (Loss) Recognized in Income for the Contracts to Purchase and Sell Foreign Currency Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Foreign exchange contracts | General and administrative | ||||
Foreign Exchange Risk Management | ||||
Gain (loss) for contracts to purchase and sell foreign currency | $ (2) | $ (11) | $ (5) | $ 72 |