Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 24, 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | MA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 940,404,217 | |
2.1% Notes due 2027 | ||
Title of 12(b) Security | 2.1% Notes due 2027 | |
Trading Symbol | MA27 | |
Security Exchange Name | NYSE | |
1.0% Notes due 2029 | ||
Title of 12(b) Security | 1.0% Notes due 2029 | |
Trading Symbol | MA29A | |
Security Exchange Name | NYSE | |
2.5% Notes due 2030 | ||
Title of 12(b) Security | 2.5% Notes due 2030 | |
Trading Symbol | MA30 | |
Security Exchange Name | NYSE | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 7,448,384 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net Revenue | $ 5,748 | $ 5,167 |
Operating Expenses: | ||
General and administrative | 2,043 | 1,844 |
Advertising and marketing | 167 | 181 |
Depreciation and amortization | 191 | 192 |
Provision for litigation | 211 | 0 |
Total operating expenses | 2,612 | 2,217 |
Operating income | 3,136 | 2,950 |
Other Income (Expense): | ||
Investment income | 55 | 5 |
Gains (losses) on equity investments, net | (212) | (76) |
Interest expense | (132) | (110) |
Other income (expense), net | 6 | 4 |
Total other income (expense) | (283) | (177) |
Income before income taxes | 2,853 | 2,773 |
Income tax expense | 492 | 142 |
Net Income | $ 2,361 | $ 2,631 |
Basic Earnings per Share (in dollars per share) | $ 2.48 | $ 2.69 |
Basic weighted-average shares outstanding (in shares) | 953 | 977 |
Diluted Earnings per Share (in dollars per share) | $ 2.47 | $ 2.68 |
Diluted weighted-average shares outstanding (in shares) | 956 | 981 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 2,361 | $ 2,631 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 94 | (64) |
Income tax effect | (14) | 12 |
Foreign currency translation adjustments, net of income tax effect | 80 | (52) |
Translation adjustments on net investment hedges | (74) | 86 |
Income tax effect | 17 | (19) |
Translation adjustments on net investment hedges, net of income tax effect | (57) | 67 |
Cash flow hedges | (10) | 1 |
Income tax effect | 0 | 0 |
Reclassification adjustments for cash flow hedges | 8 | (5) |
Income tax effect | 1 | 1 |
Cash flow hedges, net of income tax effect | (1) | (3) |
Investment securities available-for-sale | 2 | (2) |
Income tax effect | 0 | 1 |
Investment securities available-for-sale, net of income tax effect | 2 | (1) |
Other comprehensive income (loss), net of income tax effect | 24 | 11 |
Comprehensive Income | $ 2,385 | $ 2,642 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) shares in Millions, $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 6,566 | $ 7,008 |
Restricted cash for litigation settlement | 596 | 589 |
Investments | 402 | 400 |
Accounts receivable | 3,511 | 3,425 |
Settlement assets | 1,236 | 1,270 |
Restricted security deposits held for customers | 1,608 | 1,568 |
Prepaid expenses and other current assets | 2,501 | 2,346 |
Total current assets | 16,420 | 16,606 |
Property, equipment and right-of-use assets, net of accumulated depreciation and amortization of $2,002 and $1,904, respectively | 2,006 | 2,006 |
Deferred income taxes | 1,267 | 1,151 |
Goodwill | 7,575 | 7,522 |
Other intangible assets, net of accumulated amortization of $2,018 and $1,960, respectively | 4,027 | 3,859 |
Other assets | 7,641 | 7,580 |
Total Assets | 38,936 | 38,724 |
Liabilities, Redeemable Non-controlling Interests and Equity | ||
Accounts payable | 735 | 926 |
Settlement obligations | 870 | 1,111 |
Restricted security deposits held for customers | 1,608 | 1,568 |
Accrued litigation | 1,107 | 1,094 |
Accrued expenses | 7,310 | 7,801 |
Short-term debt | 276 | 274 |
Other current liabilities | 1,745 | 1,397 |
Total current liabilities | 13,651 | 14,171 |
Long-term debt | 15,292 | 13,749 |
Deferred income taxes | 389 | 393 |
Other liabilities | 4,197 | 4,034 |
Total Liabilities | 33,529 | 32,347 |
Commitments and Contingencies | ||
Redeemable Non-controlling Interests | 21 | 21 |
Stockholders’ Equity | ||
Additional paid-in-capital | 5,376 | 5,298 |
Class A treasury stock, at cost, 459 and 451 shares, respectively | (54,241) | (51,354) |
Retained earnings | 55,424 | 53,607 |
Accumulated other comprehensive income (loss) | (1,229) | (1,253) |
Mastercard Incorporated Stockholders' Equity | 5,330 | 6,298 |
Non-controlling interests | 56 | 58 |
Total Equity | 5,386 | 6,356 |
Total Liabilities, Redeemable Non-controlling Interests and Equity | 38,936 | 38,724 |
Class A Common Stock | ||
Stockholders’ Equity | ||
Common stock | $ 0 | $ 0 |
Common stock, issued | 1,400 | 1,399 |
Common stock, outstanding | 941 | 948 |
Class B Common Stock | ||
Stockholders’ Equity | ||
Common stock | $ 0 | $ 0 |
Common stock, issued | 7 | 8 |
Common stock, outstanding | 7 | 8 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accumulated depreciation and amortization | $ 2,002 | $ 1,904 |
Other intangible assets, accumulated amortization | $ 2,018 | $ 1,960 |
Class A treasury stock, shares | 459,000,000 | 451,000,000 |
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 | 1,400,000,000 | 1,399,000,000 |
Common stock, outstanding | 941,000,000 | 948,000,000 |
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 | 7,000,000 | 8,000,000 |
Common stock, outstanding | 7,000,000 | 8,000,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Common Stock Class A | Common Stock Class 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, 2021 | $ 7,383 | $ 0 | $ 0 | $ 5,061 | $ (42,588) | $ 45,648 | $ (809) | $ 7,312 | $ 71 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,631 | 2,631 | 2,631 | ||||||
Activity related to non-controlling interests | (3) | (3) | |||||||
Redeemable non-controlling interest adjustments | (2) | (2) | (2) | ||||||
Other comprehensive income (loss) | 11 | 11 | 11 | ||||||
Dividends | (477) | (477) | (477) | ||||||
Purchases of treasury stock | (2,411) | (2,411) | (2,411) | ||||||
Share-based payments | (30) | (35) | 5 | (30) | |||||
Balance at end of period at Mar. 31, 2022 | 7,102 | 0 | 0 | 5,026 | (44,994) | 47,800 | (798) | 7,034 | 68 |
Balance at beginning of period at Dec. 31, 2022 | 6,356 | 0 | 0 | 5,298 | (51,354) | 53,607 | (1,253) | 6,298 | 58 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,361 | 2,361 | 2,361 | ||||||
Activity related to non-controlling interests | (2) | (2) | |||||||
Redeemable non-controlling interest adjustments | (3) | (3) | (3) | ||||||
Other comprehensive income (loss) | 24 | 24 | 24 | ||||||
Dividends | (541) | (541) | (541) | ||||||
Purchases of treasury stock | (2,894) | (2,894) | (2,894) | ||||||
Share-based payments | 85 | 78 | 7 | 85 | |||||
Balance at end of period at Mar. 31, 2023 | $ 5,386 | $ 0 | $ 0 | $ 5,376 | $ (54,241) | $ 55,424 | $ (1,229) | $ 5,330 | $ 56 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities | ||
Net income | $ 2,361 | $ 2,631 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of customer and merchant incentives | 378 | 430 |
Depreciation and amortization | 191 | 192 |
(Gains) losses on equity investments, net | 212 | 76 |
Share-based compensation | 108 | 74 |
Deferred income taxes | (129) | (320) |
Other | 2 | 5 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (38) | 134 |
Settlement assets | 35 | 218 |
Prepaid expenses | (761) | (441) |
Accrued litigation and legal settlements | 9 | (43) |
Restricted security deposits held for customers | 40 | (144) |
Accounts payable | (184) | (56) |
Settlement obligations | (241) | (366) |
Accrued expenses | (506) | (746) |
Net change in other assets and liabilities | 442 | 138 |
Net cash provided by operating activities | 1,919 | 1,782 |
Investing Activities | ||
Purchases of investment securities available-for-sale | (50) | (58) |
Purchases of investments held-to-maturity | (26) | (37) |
Proceeds from sales of investment securities available-for-sale | 4 | 8 |
Proceeds from maturities of investment securities available-for-sale | 51 | 70 |
Proceeds from maturities of investments held-to-maturity | 24 | 43 |
Purchases of property and equipment | (110) | (146) |
Capitalized software | (242) | (148) |
Purchases of equity investments | (22) | (24) |
Proceeds from sales of equity investments | 44 | 0 |
Other investing activities | (70) | 5 |
Net cash used in investing activities | (397) | (287) |
Financing Activities | ||
Purchases of treasury stock | (2,878) | (2,408) |
Dividends paid | (545) | (479) |
Proceeds from debt, net | 1,489 | 843 |
Tax withholdings related to share-based payments | (76) | (132) |
Cash proceeds from exercise of stock options | 53 | 28 |
Other financing activities | 2 | (6) |
Net cash used in financing activities | (1,955) | (2,154) |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 37 | (28) |
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents | (396) | (687) |
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period | 9,196 | 9,902 |
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period | $ 8,800 | $ 9,215 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
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. Mastercard connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide by enabling electronic forms of payment instead of cash and checks and making those payment transactions safe, simple, smart and accessible. 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 marketable, equity method or measurement alternative method investments and recorded in other assets on the consolidated balance sheet. At March 31, 2023 and December 31, 2022, 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. During the fourth quarter of 2022, the Company updated its disaggregated net revenue presentation by category and geography to reflect the nature of its payment services and to align such information with the way in which management views its categories of net revenue. Prior period amounts have been reclassified to conform to the 2022 presentation. The reclassification had no impact on previously reported total net revenue, operating income or net income. The Company follows accounting principles generally accepted in the United States of America (“GAAP”). The balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of December 31, 2022. The consolidated financial statements for the three months ended March 31, 2023 and 2022 and as of March 31, 2023 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 months ended March 31, 2023 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, 2022 for additional disclosures, including a summary of the Company’s significant accounting policies. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions In April 2022, Mastercard acquired 100% equity interest in Dynamic Yield LTD. As of March 31, 2023, the Company finalized the purchase price accounting of $325 million for this acquisition. For the preliminary estimated fair value of the purchase price allocation as of the acquisition date, 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, 2022. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company’s disaggregated net revenue by category and geographic region were as follows: Three Months Ended March 31, 2023 2022 (in millions) Net revenue by category: Payment network $ 3,650 $ 3,399 Value-added services and solutions 2,098 1,768 Net revenue $ 5,748 $ 5,167 Net revenue by geographic region: North American Markets $ 1,896 $ 1,730 International Markets 3,852 3,437 Net revenue $ 5,748 $ 5,167 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: March 31, December 31, (in millions) Receivables from contracts with customers Accounts receivable $ 3,271 $ 3,213 Contract assets Prepaid expenses and other current assets 142 118 Other assets 511 442 Deferred revenue 1 Other current liabilities 634 434 Other liabilities 266 248 1 Revenue recognized from performance obligations satisfied during the three months ended March 31, 2023 was $371 million. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (in millions, except per share data) Numerator Net income $ 2,361 $ 2,631 Denominator Basic weighted-average shares outstanding 953 977 Dilutive stock options and stock units 3 4 Diluted weighted-average shares outstanding 1 956 981 Earnings per Share Basic $ 2.48 $ 2.69 Diluted $ 2.47 $ 2.68 Note: Table may not sum due to rounding. 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 | 3 Months Ended |
Mar. 31, 2023 | |
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. March 31, December 31, (in millions) Cash and cash equivalents $ 6,566 $ 7,008 Restricted cash and restricted cash equivalents Restricted cash for litigation settlement 596 589 Restricted security deposits held for customers 1,608 1,568 Prepaid expenses and other current assets 30 31 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 8,800 $ 9,196 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
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 debt 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: March 31, December 31, (in millions) Available-for-sale securities 1 $ 271 $ 272 Held-to-maturity securities 2 131 128 Total investments $ 402 $ 400 1 See Available-for-Sale Securities section below for further detail. 2 The cost of these securities approximates fair value. 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: March 31, 2023 December 31, 2022 Amortized Gross Gross Fair Amortized Gross Gross Fair (in millions) Government and agency securities $ 96 $ — $ (1) $ 95 $ 91 $ — $ (2) $ 89 Corporate securities 179 — (3) 176 187 — (4) 183 Total $ 275 $ — $ (4) $ 271 $ 278 $ — $ (6) $ 272 The Company’s 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. Corporate available-for-sale investment securities held at March 31, 2023 and December 31, 2022 primarily carried a credit rating of A- or better. Corporate securities are comprised of commercial paper and corporate bonds. 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 available-for-sale investment securities at March 31, 2023 was as follows: Amortized Cost Fair Value (in millions) Due within 1 year $ 156 $ 155 Due after 1 year through 5 years 119 116 Total $ 275 $ 271 Investment income on the consolidated statement of operations primarily consists of interest income generated from cash, cash equivalents, time deposits and available-for-sale investment securities, as well as 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 months ended March 31, 2023 and 2022 were not material. 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 equity interests in 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, 2022 Purchases Sales Changes in Fair Value 1 Other 2 Balance at March 31, 2023 (in millions) Marketable securities $ 399 $ — $ — $ (66) $ 3 $ 336 Nonmarketable securities 1,331 22 (44) (146) 4 1,167 Total equity investments $ 1,730 $ 22 $ (44) $ (212) $ 7 $ 1,503 1 Recorded in gains (losses) on equity investments, net on the consolidated statement of operations. 2 Includes translational impact of currency. The following table sets forth the components of the Company’s Nonmarketable securities: March 31, December 31, (in millions) Measurement alternative $ 958 $ 1,087 Equity method 209 244 Total Nonmarketable securities $ 1,167 $ 1,331 The following table summarizes the total carrying value of the Company’s Measurement alternative investments, including cumulative unrealized gains and losses through March 31, 2023: (in millions) Initial cost basis $ 504 Cumulative adjustments 1 : Upward adjustments 620 Downward adjustments (including impairment) (166) Carrying amount, end of period $ 958 1 Includes immaterial translational impact of currency. The following table summarizes the unrealized gains and losses included in the carrying value of the Company’s Measurement alternative investments and Marketable securities for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in millions) Measurement alternative investments: Upward adjustments $ — $ 86 Downward adjustments (including impairment) (133) — Marketable securities: Unrealized gains (losses), net (66) (162) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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. 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: March 31, 2023 December 31, 2022 Quoted Prices Significant Significant Total Quoted Prices Significant Significant Total (in millions) Assets Investment securities available-for-sale 1 : Government and agency securities $ 31 $ 64 $ — $ 95 $ 35 $ 54 $ — $ 89 Corporate securities — 176 — 176 — 183 — 183 Derivative instruments 2 : Foreign exchange contracts — 47 — 47 — 108 — 108 Marketable securities 3 : Equity securities 336 — — 336 399 — — 399 Deferred compensation plan 4 : Deferred compensation assets 81 — — 81 74 — — 74 Liabilities Derivative instruments 2 : Foreign exchange contracts $ — $ 43 $ — $ 43 $ — $ 21 $ — $ 21 Interest rate contracts — 89 — 89 — 105 — 105 Deferred compensation plan 5 : Deferred compensation liabilities 80 — — 80 73 — — 73 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 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 and interest rate 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 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 - Nonrecurring Measurements Nonmarketable Securities The Company’s Nonmarketable securities are recorded at fair value on a nonrecurring 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 debt based on either market quotes or observable market data. Debt is classified as Level 2 of the Valuation Hierarchy as it is generally not traded in active markets. At March 31, 2023, the carrying value and fair value of debt was $15.6 billion and $14.6 billion, respectively. At December 31, 2022, the carrying value and fair value of debt was $14.0 billion and $12.7 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 assets, restricted security deposits held for customers, accounts payable, settlement obligations and other accrued liabilities. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, December 31, (in millions) Customer and merchant incentives $ 1,448 $ 1,392 Prepaid income taxes 25 34 Other 1,028 920 Total prepaid expenses and other current assets $ 2,501 $ 2,346 Other assets consisted of the following: March 31, December 31, (in millions) Customer and merchant incentives $ 4,715 $ 4,578 Equity investments 1,503 1,730 Income taxes receivable 691 633 Other 732 639 Total other assets $ 7,641 $ 7,580 Customer and merchant incentives represent payments made to customers and merchants under business agreements. Payments made directly related to entering into such an agreement are generally capitalized and amortized over the life of the agreement. |
Accrued Expenses and Accrued Li
Accrued Expenses and Accrued Litigation | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Accrued Litigation | Accrued Expenses and Accrued Litigation Accrued expenses consisted of the following: March 31, December 31, (in millions) Customer and merchant incentives $ 5,619 $ 5,600 Personnel costs 589 1,322 Income and other taxes 588 279 Other 514 600 Total accrued expenses $ 7,310 $ 7,801 Customer and merchant incentives represent amounts to be paid to customers under business agreements. As of March 31, 2023 and December 31, 2022, long-term customer and merchant incentives included in other liabilities were $2,433 million and $2,293 million, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt [Abstract] | |
Debt | Debt Debt consisted of the following: March 31, December 31, Effective (in millions) Senior Notes 2023 USD Notes 4.875 % Senior Notes due March 2028 $ 750 $ — 5.003 % 4.850 % Senior Notes due March 2033 750 — 4.923 % 2022 EUR Notes 1 1.000 % Senior Notes due February 2029 815 800 1.138 % 2021 USD Notes 2.000 % Senior Notes due November 2031 750 750 2.112 % 1.900 % Senior Notes due March 2031 600 600 1.981 % 2.950 % Senior Notes due March 2051 700 700 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 2.950 % Senior Notes due November 2026 750 750 3.044 % 3.800 % Senior Notes due November 2046 600 600 3.893 % 2015 EUR Notes 2 2.100 % Senior Notes due December 2027 870 854 2.189 % 2.500 % Senior Notes due December 2030 163 160 2.562 % 2014 USD Notes 3.375 % Senior Notes due April 2024 1,000 1,000 3.484 % Other Debt 2022 INR Term Loan 3 8.640 % Term Loan due July 2023 277 275 9.090 % 15,775 14,239 Less: Unamortized discount and debt issuance costs (118) (111) Less: Cumulative hedge accounting fair value adjustments 4 (89) (105) Total debt outstanding 15,568 14,023 Less: Short-term debt 5 (276) (274) Long-term debt $ 15,292 $ 13,749 1 €750 million euro-denominated debt issued in February 2022. 2 €950 million euro-denominated debt remaining of the €1.650 billion issued in December 2015. 3 INR22.7 billion Indian rupee-denominated loan issued in July 2022. 4 The Company has an interest rate swap which is accounted for as a fair value hedge. See Note 17 (Derivative and Hedging Instruments) for additional information. 5 The INR Term Loan due July 2023 is classified as short-term debt on the consolidated balance sheet as of March 31, 2023 and December 31, 2022. Senior Notes In March 2023, the Company issued $750 million principal amount of notes due March 2028 and $750 million principal amount of notes due March 2033 (collectively the “2023 USD Notes”). The net proceeds from the issuance of the 2023 USD Notes, after deducting the original issue discount, underwriting discount and offering expenses, were $1.489 billion. The Senior Notes described above are not subject to any financial covenants and may be redeemed in whole, or in part, at the Company’s option at any time for a specified make-whole amount. These notes are senior unsecured obligations and would rank equally with any future unsecured and unsubordinated indebtedness. Indian Rupee (“INR”) Term Loan In July 2022, the Company entered into an unsecured INR22.7 billion ($277 million as of March 31, 2023) term loan due July 2023 (the “2022 INR Term Loan”). The net proceeds of the 2022 INR Term Loan, after deducting issuance costs, were INR22.6 billion ($284 million as of the date of settlement). In April 2023, the Company entered into an additional unsecured INR4.97 billion ($61 million as of the date of settlement) term loan, also due July 2023 (the “2023 INR Term Loan”). The net proceeds of the 2023 INR Term Loan, after deducting issuance costs, were INR4.96 billion ($61 million as of the date of settlement). |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Dividends The Company declared quarterly cash dividends on its Class A and Class B common stock as summarized below: Three Months Ended March 31, 2023 2022 (in millions, except per share data) Dividends declared per share $ 0.57 $ 0.49 Total dividends declared $ 541 $ 477 Common Stock Activity The following table presents the changes in the Company’s outstanding Class A and Class B common stock: Three Months Ended March 31, 2023 2022 Outstanding Shares Outstanding Shares Class A Class B Class A Class B (in millions) Balance at beginning of period 948.4 7.6 972.1 7.8 Purchases of treasury stock (8.0) — (6.8) — Share-based payments 0.9 — 1.1 — Conversion of Class B to Class A common stock 0.1 (0.1) 0.1 (0.1) Balance at end of period 941.4 7.5 966.5 7.7 In December 2022 and November 2021, the Company’s Board of Directors approved share repurchase programs of its Class A common stock authorizing the Company to repurchase up to $9.0 billion and $8.0 billion, respectively. The following table summarizes the Company’s share repurchases of its Class A common stock: Three Months Ended March 31, 2023 2022 (in millions, except per share data) Dollar-value of shares repurchased 1 $ 2,878 $ 2,408 Shares repurchased 8.0 6.8 Average price paid per share $ 361.70 $ 355.13 1 The three months ended March 31, 2023 dollar-value of shares repurchased does not include a 1% excise tax on share repurchases that became effective January 1, 2023. The incremental tax is recorded in treasury stock on the consolidated balance sheet and is payable annually beginning in 2024. As of March 31, 2023, the remaining authorization under the share repurchase programs approved by the Company’s Board of Directors was $9.3 billion. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023 and 2022 were as follows: December 31, 2022 Increase / (Decrease) Reclassifications March 31, 2023 (in millions) Foreign currency translation adjustments 1 $ (1,414) $ 80 $ — $ (1,334) Translation adjustments on net investment hedges 2 309 (57) — 252 Cash flow hedges Foreign exchange contracts 3 (8) (10) 8 (10) Interest rate contracts (123) — 1 (122) Defined benefit pension and other postretirement plans (11) — — (11) Investment securities available-for-sale (6) 2 — (4) Accumulated other comprehensive income (loss) $ (1,253) $ 15 $ 9 $ (1,229) December 31, 2021 Increase / (Decrease) Reclassifications March 31, 2022 (in millions) Foreign currency translation adjustments 1 $ (739) $ (52) $ — $ (791) Translation adjustments on net investment hedges 2 34 67 — 101 Cash flow hedges Foreign exchange contracts 3 4 1 (5) — Interest rate contracts (128) — 1 (127) Defined benefit pension and other postretirement plans 21 — — 21 Investment securities available-for-sale (1) (1) — (2) Accumulated other comprehensive income (loss) $ (809) $ 15 $ (4) $ (798) 1 During the three months ended March 31, 2023, the decrease in th e accumulated other comprehensiv e loss r elated to foreign currency translation adjustm ents was driven primarily by the appreciation of the euro and British pound against the U.S. dollar. Duri ng the three months ended March 31, 2022, the increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the depreciation of the e uro and British pound agai nst the U.S. dollar, partially offset by the appreciation of the Brazilian real against the U.S. dollar . 2 During the three months ended March 31, 2023, the decrease in t he accumulated other comprehensive gain related to the net investment hedges was driven by the appreciation of the euro against the U.S. dollar. During the three months ended March 31, 2022, t he increase in the accumulated other comprehensive gain related to the net investment hedges was driven by the depreciation of the euro against the U.S. dollar . See Note 17 (Derivative and Hedging Instruments) for additional information. 3 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. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |
Share-Based Payments | Share-Based Payments During the three months ended March 31, 2023, the Company granted the following awards under the Mastercard Incorporated 2006 Long Term Incentive Plan, amended and restated as of June 22, 2021 (the “LTIP”). The LTIP is a stockholder-approved plan that permits the grant of various types of equity awards to employees. Grants in 2023 Weighted-Average (in millions) (per option/unit) Non-qualified stock options 0.3 $ 123 Restricted stock units 1.1 $ 349 Performance stock units 0.2 $ 365 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 2023 was estimated to be six years, while the expected volatility was determined to be 29.6%. These awards expire ten years from the date of grant and vest ratably over three years. 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. For RSUs granted in 2023, the awards generally vest ratably over three years. The Company used the Monte Carlo simulation valuation model to determine the grant-date fair value of performance stock units (“PSUs”) granted. PSUs 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 | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rates were 17.2% and 5.1% for the three months ended March 31, 2023 and 2022, respectively. The higher effective income tax rate for the three months ended March 31, 2023, versus the comparable period in 2022, was primarily due to a prior year discrete tax benefit related to final U.S. tax regulations published in the first quarter of 2022, which resulted in a valuation allowance release of $333 million associated with the U.S. foreign tax credit carryforward deferred tax asset. Additionally, the U.K. statutory tax rate increase, effective in 2023, contributed to the higher effective income tax rate. 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 is 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 2014. With limited exception, the Company is no longer subject to state and local or foreign examinations by tax authorities for years before 2011. |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 3 Months Ended |
Mar. 31, 2023 | |
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 and 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 seeking 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, which was upheld by the appellate court in March 2023. The objectors to the settlement currently have the opportunity to petition the U.S. Supreme Court to hear an appeal of this order. 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. Separately, 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 March 31, 2023 and December 31, 2022, Mastercard had accrued a liability of $1,094 million and $894 million, respectively, as a reserve for both the Damages Class litigation and the opt-out merchant cases. During the first quarter of 2023, Mastercard recorded an additional accrual of $211 million as a result of a change in estimate with respect to the claims of merchants who opted out of the Damages Class litigation. As of March 31, 2023 and December 31, 2022, Mastercard had $596 million and $589 million, respectively, 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 March 31, 2023 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. Following these settlements, approximately £0.6 billion (approximately $0.7 billion as of March 31, 2023) of unresolved damages claims remain. 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. A number of those matters are now progressing with motion practice and discovery. In one of the actions involving multiple merchant plaintiff claims, the U.K. trial court in November 2021 denied the plaintiffs’ motion for summary judgment on certain liability issues. In October 2022, the appellate court rejected the plaintiffs’ appeal. In a separate matter filed in Belgium involving multiple merchants from the Czech Republic and Slovakia, the trial court held a hearing in June 2022 on liability issues, and the decision is pending. During the third quarter of 2022, Mastercard and Visa were served with a proposed collective action complaint in the U.K. on behalf of merchants seeking damages for commercial card transactions and inter-regional consumer card transactions in both the U.K. and the European Union. The plaintiffs have claimed damages against Mastercard of approximately £0.5 billion (approximately $0.6 billion as of March 31, 2023). The court held a hearing on the plaintiffs’ collective action application in April 2023. 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 $17 billion as of March 31, 2023). Following various hearings since July 2017 regarding collective action and scope, in August 2021, the trial court issued a decision in which it granted class certification to the plaintiffs but narrowed the scope of the class. In January 2023, the trial court held a hearing on Mastercard’s request to narrow the number of years of damages sought by the plaintiffs on statute of limitations grounds. The trial court has scheduled an additional hearing for July 2023 regarding Mastercard’s request to preclude the plaintiffs from seeking damages with respect to U.K. domestic interchange fees. Mastercard has been named as a defendant in a proposed consumer collective action filed in Portugal on behalf of Portuguese consumers. The complaint, which seeks to leverage the 2019 resolution of the European Commission’s investigation of Mastercard’s central acquiring rules and interregional interchange fees, claims damages of approximately €0.4 billion (approximately $0.4 billion as of March 31, 2023) for interchange fees that were allegedly passed on to consumers by Portuguese merchants for a period of approximately 20 years. Mastercard has submitted a statement of defense that disputes both liability and damages. In April 2023, the Serbian Competition Commission issued a Statement of Objections (“SO”) against Mastercard. The SO covers historic domestic interchange fees from 2013 to 2018. The SO seeks monetary fines and costs but no business practices changes. Australia. In May 2022, the Australian Competition & Consumer Commission (“ACCC”) filed a complaint targeting certain agreements entered into by Mastercard and certain Australian merchants related to Mastercard’s debit program. The ACCC alleges that by entering into such agreements, Mastercard engaged in conduct with the purpose of substantially lessening competition in the supply of debit card acceptance services. The ACCC seeks both declaratory relief and monetary fines and costs. A hearing on liability issues has been scheduled for July 2024. ATM Non-Discrimination Rule Surcharge Complaints United States. 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 September 2019, the plaintiffs filed with the district court 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 subsequently appealed the certification decision to the appellate court and oral argument on the appeal was heard in September 2022. Europe. Mastercard has been named as a defendant in an action brought by Euronet 360 Finance Limited, Euronet Polska Spolka z.o.o. and Euronet Services spol. s.r.o. (“Euronet”) alleging that certain rules affecting ATM access fees in Poland, the Czech Republic and Greece by Visa and Mastercard, and certain of their subsidiaries, breach various competition laws. Euronet seeks damages, costs and injunctive relief to prevent the defendants from enforcing these rules. A trial has been scheduled for October 2023. 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 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 and in January 2021, the Network Defendants’ request for permission to appeal that decision 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 judgment is scheduled to conclude in July 2023. 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 December 2019, the Federal Communications Commission (“FCC”) issued a declaratory ruling clarifying that the TCPA does not apply to faxes sent to online fax services that are received online via email. In December 2021, the trial court granted plaintiffs’ request for class certification, but narrowed the scope of the class to stand alone fax recipients only. Mastercard’s request to appeal that decision was denied. 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 focused on Mastercard’s compliance with the debit routing provisions of the Durbin Amendment. In December 2022, the FTC voted to issue an administrative complaint and accept a consent agreement with Mastercard. Pursuant to this agreement, Mastercard agreed to provide primary account numbers (PANs) so that merchants can route tokenized online debit transactions to alternative networks. The consent agreement does not include any monetary penalty. The comment period has concluded and the Company is awaiting the FTC’s decision on finalizing the proposed consent agreement. U.S. Department of Justice Investigation In March 2023, Mastercard received a Civil Investigative Demand (“CID”) from the U.S. Department of Justice Antitrust Division (“DOJ”) seeking documents and information regarding a potential violation of Sections 1 or 2 of the Sherman Act. The CID focuses on Mastercard’s U.S. debit program and competition with other payment networks and technologies. Mastercard is cooperating with the DOJ in connection with the CID. |
Settlement and Other Risk Manag
Settlement and Other Risk Management | 3 Months Ended |
Mar. 31, 2023 | |
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. For those transactions the Company guarantees, the guarantee will cover the full amount of the settlement obligation to the extent the settlement obligation is not otherwise satisfied. Settlement is generally completed on a same-day basis, however, in some circumstances, funds may not settle until subsequent business days creating a short-term settlement exposure. 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 failed settlement by a 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 settlement 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 and the adequacy of its risk mitigation arrangements on a regular basis. 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: March 31, December 31, (in millions) Gross settlement exposure $ 64,833 $ 64,885 Risk mitigation arrangements applied to settlement exposure (9,587) (10,697) Net settlement exposure $ 55,246 $ 54,188 |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Foreign Currency Derivatives [Abstract] | |
Derivative and Hedging Instruments | 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. Gains and losses resulting from changes in fair value of these contracts are deferred in accumulated other comprehensive income (loss) and are subsequently reclassified as an adjustment to interest expense over the respective terms of the hedged debt issuances. Fair Value Hedges The Company may enter into interest rate derivative contracts, including interest rate swaps, to manage the effects of interest rate movements on the fair value of the Company's fixed-rate debt and designate such derivatives as hedging instruments in a fair value hedging relationship. Changes in fair value of these contracts and changes in fair value of fixed-rate debt attributable to changes in the hedged benchmark interest rate generally offset each other and are recorded in interest expense on the consolidated statement of operations. Gains or losses related to the net settlements of interest rate swaps are also recorded in interest expense on the consolidated statement of operations. The periodic cash settlements are included in operating activities on the consolidated statement of cash flows. In 2021, the Company entered into an interest rate swap designated as a fair value hedge related to $1.0 billion of the 3.850% Senior Notes due March 2050. In effect, the interest rate swap synthetically converts the fixed interest rate on this debt to a variable interest rate based on the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap Rate. The net impact to interest expense for the three months ended March 31, 2023 and 2022 was not material. 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 excluded from the effectiveness assessment and are 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 months ended March 31, 2023 and 2022 were not material. As of March 31, 2023 and December 31, 2022, the Company had €1.7 billion euro-denominated debt outstanding designated as hedges of a portion of its net investment in its European operations. For the three months ended March 31, 2023 and 2022, the Company recorded pre-tax net foreign currency gains (losses) of $(35) million and $51 million, respectively, in other comprehensive income (loss). As of March 31, 2023 and December 31, 2022, the Company had net foreign currency gains of $252 million and $309 million, respectively, 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: March 31, 2023 December 31, 2022 Notional Derivative assets Derivative liabilities Notional Derivative assets Derivative liabilities (in millions) Derivatives designated as hedging instruments Foreign exchange contracts in a cash flow hedge 1 $ 709 $ 5 $ 19 $ 642 $ 4 $ 15 Interest rate contracts in a fair value hedge 2 1,000 — 89 1,000 — 105 Foreign exchange contracts in a net investment hedge 1 2,229 16 16 1,814 103 4 Derivatives not designated as hedging instruments Foreign exchange contracts 1 1,988 26 8 521 1 2 Total derivative assets/liabilities $ 5,926 $ 47 $ 132 $ 3,977 $ 108 $ 126 1 Foreign exchange derivative assets and liabilities are included within prepaid expenses and other current assets and other current liabilities, respectively, on the consolidated balance sheet. 2 Interest rate derivative liabilities are included within other current liabilities and other 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 March 31, Location of Gain (Loss) Reclassified from AOCI into Earnings Three Months Ended March 31, 2023 2022 2023 2022 (in millions) (in millions) Derivative financial instruments in a cash flow hedge relationship: Foreign exchange contracts $ (10) $ 1 Net revenue $ (6) $ 7 Interest rate contracts $ — $ — Interest expense $ (2) $ (2) Derivative financial instruments in a net investment hedge relationship: Foreign exchange contracts $ (39) $ 35 The Company estimates that $21 million, pre-tax, of the net deferred loss on cash flow hedges recorded in accumulated other comprehensive income (loss) at March 31, 2023 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 March 31, Derivatives not designated as hedging instruments: 2023 2022 (in millions) Foreign exchange derivative contracts General and administrative $ 15 $ 1 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2023 | |
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. Mastercard connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide by enabling electronic forms of payment instead of cash and checks and making those payment transactions safe, simple, smart and accessible. |
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 marketable, equity method or measurement alternative method investments and recorded in other assets on the consolidated balance sheet. At March 31, 2023 and December 31, 2022, 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. During the fourth quarter of 2022, the Company updated its disaggregated net revenue presentation by category and geography to reflect the nature of its payment services and to align such information with the way in which management views its categories of net revenue. Prior period amounts have been reclassified to conform to the 2022 presentation. The reclassification had no impact on previously reported total net revenue, operating income or net income. The Company follows accounting principles generally accepted in the United States of America (“GAAP”). The balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of December 31, 2022. The consolidated financial statements for the three months ended March 31, 2023 and 2022 and as of March 31, 2023 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 months ended March 31, 2023 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, 2022 for additional disclosures, including a summary of the Company’s significant accounting policies. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company’s disaggregated net revenue by category and geographic region were as follows: Three Months Ended March 31, 2023 2022 (in millions) Net revenue by category: Payment network $ 3,650 $ 3,399 Value-added services and solutions 2,098 1,768 Net revenue $ 5,748 $ 5,167 Net revenue by geographic region: North American Markets $ 1,896 $ 1,730 International Markets 3,852 3,437 Net revenue $ 5,748 $ 5,167 March 31, December 31, (in millions) Receivables from contracts with customers Accounts receivable $ 3,271 $ 3,213 Contract assets Prepaid expenses and other current assets 142 118 Other assets 511 442 Deferred revenue 1 Other current liabilities 634 434 Other liabilities 266 248 1 Revenue recognized from performance obligations satisfied during the three months ended March 31, 2023 was $371 million. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (in millions, except per share data) Numerator Net income $ 2,361 $ 2,631 Denominator Basic weighted-average shares outstanding 953 977 Dilutive stock options and stock units 3 4 Diluted weighted-average shares outstanding 1 956 981 Earnings per Share Basic $ 2.48 $ 2.69 Diluted $ 2.47 $ 2.68 Note: Table may not sum due to rounding. 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) | 3 Months Ended |
Mar. 31, 2023 | |
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. March 31, December 31, (in millions) Cash and cash equivalents $ 6,566 $ 7,008 Restricted cash and restricted cash equivalents Restricted cash for litigation settlement 596 589 Restricted security deposits held for customers 1,608 1,568 Prepaid expenses and other current assets 30 31 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 8,800 $ 9,196 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments On the Consolidated Balance Sheet | Investments on the consolidated balance sheet consisted of the following: March 31, December 31, (in millions) Available-for-sale securities 1 $ 271 $ 272 Held-to-maturity securities 2 131 128 Total investments $ 402 $ 400 1 See Available-for-Sale Securities section below for further detail. 2 The cost of these securities approximates fair value. |
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: March 31, 2023 December 31, 2022 Amortized Gross Gross Fair Amortized Gross Gross Fair (in millions) Government and agency securities $ 96 $ — $ (1) $ 95 $ 91 $ — $ (2) $ 89 Corporate securities 179 — (3) 176 187 — (4) 183 Total $ 275 $ — $ (4) $ 271 $ 278 $ — $ (6) $ 272 |
Maturity Distribution Based on Contractual Terms of Investment Securities | The maturity distribution based on the contractual terms of the Company’s available-for-sale investment securities at March 31, 2023 was as follows: Amortized Cost Fair Value (in millions) Due within 1 year $ 156 $ 155 Due after 1 year through 5 years 119 116 Total $ 275 $ 271 |
Equity Investments | The following table is a summary of the activity related to the Company’s equity investments: Balance at December 31, 2022 Purchases Sales Changes in Fair Value 1 Other 2 Balance at March 31, 2023 (in millions) Marketable securities $ 399 $ — $ — $ (66) $ 3 $ 336 Nonmarketable securities 1,331 22 (44) (146) 4 1,167 Total equity investments $ 1,730 $ 22 $ (44) $ (212) $ 7 $ 1,503 1 Recorded in gains (losses) on equity investments, net on the consolidated statement of operations. 2 Includes translational impact of currency. |
Nonmarketable securities | The following table sets forth the components of the Company’s Nonmarketable securities: March 31, December 31, (in millions) Measurement alternative $ 958 $ 1,087 Equity method 209 244 Total Nonmarketable securities $ 1,167 $ 1,331 |
Carrying Value of Measurement Alternative Investments | The following table summarizes the total carrying value of the Company’s Measurement alternative investments, including cumulative unrealized gains and losses through March 31, 2023: (in millions) Initial cost basis $ 504 Cumulative adjustments 1 : Upward adjustments 620 Downward adjustments (including impairment) (166) Carrying amount, end of period $ 958 1 Includes immaterial translational impact of currency. |
Unrealized Gains (Losses) Included in the Carrying Value of Measurement Alternative Investments | The following table summarizes the unrealized gains and losses included in the carrying value of the Company’s Measurement alternative investments and Marketable securities for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in millions) Measurement alternative investments: Upward adjustments $ — $ 86 Downward adjustments (including impairment) (133) — Marketable securities: Unrealized gains (losses), net (66) (162) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 Quoted Prices Significant Significant Total Quoted Prices Significant Significant Total (in millions) Assets Investment securities available-for-sale 1 : Government and agency securities $ 31 $ 64 $ — $ 95 $ 35 $ 54 $ — $ 89 Corporate securities — 176 — 176 — 183 — 183 Derivative instruments 2 : Foreign exchange contracts — 47 — 47 — 108 — 108 Marketable securities 3 : Equity securities 336 — — 336 399 — — 399 Deferred compensation plan 4 : Deferred compensation assets 81 — — 81 74 — — 74 Liabilities Derivative instruments 2 : Foreign exchange contracts $ — $ 43 $ — $ 43 $ — $ 21 $ — $ 21 Interest rate contracts — 89 — 89 — 105 — 105 Deferred compensation plan 5 : Deferred compensation liabilities 80 — — 80 73 — — 73 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 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 and interest rate 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 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) | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: March 31, December 31, (in millions) Customer and merchant incentives $ 1,448 $ 1,392 Prepaid income taxes 25 34 Other 1,028 920 Total prepaid expenses and other current assets $ 2,501 $ 2,346 |
Schedule of Other Assets, Noncurrent | Other assets consisted of the following: March 31, December 31, (in millions) Customer and merchant incentives $ 4,715 $ 4,578 Equity investments 1,503 1,730 Income taxes receivable 691 633 Other 732 639 Total other assets $ 7,641 $ 7,580 |
Accrued Expenses and Accrued _2
Accrued Expenses and Accrued Litigation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: March 31, December 31, (in millions) Customer and merchant incentives $ 5,619 $ 5,600 Personnel costs 589 1,322 Income and other taxes 588 279 Other 514 600 Total accrued expenses $ 7,310 $ 7,801 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt [Abstract] | |
Schedule of Long-term Debt | Debt consisted of the following: March 31, December 31, Effective (in millions) Senior Notes 2023 USD Notes 4.875 % Senior Notes due March 2028 $ 750 $ — 5.003 % 4.850 % Senior Notes due March 2033 750 — 4.923 % 2022 EUR Notes 1 1.000 % Senior Notes due February 2029 815 800 1.138 % 2021 USD Notes 2.000 % Senior Notes due November 2031 750 750 2.112 % 1.900 % Senior Notes due March 2031 600 600 1.981 % 2.950 % Senior Notes due March 2051 700 700 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 2.950 % Senior Notes due November 2026 750 750 3.044 % 3.800 % Senior Notes due November 2046 600 600 3.893 % 2015 EUR Notes 2 2.100 % Senior Notes due December 2027 870 854 2.189 % 2.500 % Senior Notes due December 2030 163 160 2.562 % 2014 USD Notes 3.375 % Senior Notes due April 2024 1,000 1,000 3.484 % Other Debt 2022 INR Term Loan 3 8.640 % Term Loan due July 2023 277 275 9.090 % 15,775 14,239 Less: Unamortized discount and debt issuance costs (118) (111) Less: Cumulative hedge accounting fair value adjustments 4 (89) (105) Total debt outstanding 15,568 14,023 Less: Short-term debt 5 (276) (274) Long-term debt $ 15,292 $ 13,749 1 €750 million euro-denominated debt issued in February 2022. 2 €950 million euro-denominated debt remaining of the €1.650 billion issued in December 2015. 3 INR22.7 billion Indian rupee-denominated loan issued in July 2022. 4 The Company has an interest rate swap which is accounted for as a fair value hedge. See Note 17 (Derivative and Hedging Instruments) for additional information. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of quarterly cash dividends declared | The Company declared quarterly cash dividends on its Class A and Class B common stock as summarized below: Three Months Ended March 31, 2023 2022 (in millions, except per share data) Dividends declared per share $ 0.57 $ 0.49 Total dividends declared $ 541 $ 477 |
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: Three Months Ended March 31, 2023 2022 Outstanding Shares Outstanding Shares Class A Class B Class A Class B (in millions) Balance at beginning of period 948.4 7.6 972.1 7.8 Purchases of treasury stock (8.0) — (6.8) — Share-based payments 0.9 — 1.1 — Conversion of Class B to Class A common stock 0.1 (0.1) 0.1 (0.1) Balance at end of period 941.4 7.5 966.5 7.7 |
Schedule of share repurchases and authorizations | The following table summarizes the Company’s share repurchases of its Class A common stock: Three Months Ended March 31, 2023 2022 (in millions, except per share data) Dollar-value of shares repurchased 1 $ 2,878 $ 2,408 Shares repurchased 8.0 6.8 Average price paid per share $ 361.70 $ 355.13 1 The three months ended March 31, 2023 dollar-value of shares repurchased does not include a 1% excise tax on share repurchases that became effective January 1, 2023. The incremental tax is recorded in treasury stock on the consolidated balance sheet and is payable annually beginning in 2024. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023 and 2022 were as follows: December 31, 2022 Increase / (Decrease) Reclassifications March 31, 2023 (in millions) Foreign currency translation adjustments 1 $ (1,414) $ 80 $ — $ (1,334) Translation adjustments on net investment hedges 2 309 (57) — 252 Cash flow hedges Foreign exchange contracts 3 (8) (10) 8 (10) Interest rate contracts (123) — 1 (122) Defined benefit pension and other postretirement plans (11) — — (11) Investment securities available-for-sale (6) 2 — (4) Accumulated other comprehensive income (loss) $ (1,253) $ 15 $ 9 $ (1,229) December 31, 2021 Increase / (Decrease) Reclassifications March 31, 2022 (in millions) Foreign currency translation adjustments 1 $ (739) $ (52) $ — $ (791) Translation adjustments on net investment hedges 2 34 67 — 101 Cash flow hedges Foreign exchange contracts 3 4 1 (5) — Interest rate contracts (128) — 1 (127) Defined benefit pension and other postretirement plans 21 — — 21 Investment securities available-for-sale (1) (1) — (2) Accumulated other comprehensive income (loss) $ (809) $ 15 $ (4) $ (798) 1 During the three months ended March 31, 2023, the decrease in th e accumulated other comprehensiv e loss r elated to foreign currency translation adjustm ents was driven primarily by the appreciation of the euro and British pound against the U.S. dollar. Duri ng the three months ended March 31, 2022, the increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the depreciation of the e uro and British pound agai nst the U.S. dollar, partially offset by the appreciation of the Brazilian real against the U.S. dollar . 2 During the three months ended March 31, 2023, the decrease in t he accumulated other comprehensive gain related to the net investment hedges was driven by the appreciation of the euro against the U.S. dollar. During the three months ended March 31, 2022, t he increase in the accumulated other comprehensive gain related to the net investment hedges was driven by the depreciation of the euro against the U.S. dollar . See Note 17 (Derivative and Hedging Instruments) for additional information. 3 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. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023, the Company granted the following awards under the Mastercard Incorporated 2006 Long Term Incentive Plan, amended and restated as of June 22, 2021 (the “LTIP”). The LTIP is a stockholder-approved plan that permits the grant of various types of equity awards to employees. Grants in 2023 Weighted-Average (in millions) (per option/unit) Non-qualified stock options 0.3 $ 123 Restricted stock units 1.1 $ 349 Performance stock units 0.2 $ 365 |
Settlement and Other Risk Man_2
Settlement and Other Risk Management (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, December 31, (in millions) Gross settlement exposure $ 64,833 $ 64,885 Risk mitigation arrangements applied to settlement exposure (9,587) (10,697) Net settlement exposure $ 55,246 $ 54,188 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 Notional Derivative assets Derivative liabilities Notional Derivative assets Derivative liabilities (in millions) Derivatives designated as hedging instruments Foreign exchange contracts in a cash flow hedge 1 $ 709 $ 5 $ 19 $ 642 $ 4 $ 15 Interest rate contracts in a fair value hedge 2 1,000 — 89 1,000 — 105 Foreign exchange contracts in a net investment hedge 1 2,229 16 16 1,814 103 4 Derivatives not designated as hedging instruments Foreign exchange contracts 1 1,988 26 8 521 1 2 Total derivative assets/liabilities $ 5,926 $ 47 $ 132 $ 3,977 $ 108 $ 126 1 Foreign exchange derivative assets and liabilities are included within prepaid expenses and other current assets and other current liabilities, respectively, on the consolidated balance sheet. 2 Interest rate derivative liabilities are included within other current liabilities and other 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 March 31, Location of Gain (Loss) Reclassified from AOCI into Earnings Three Months Ended March 31, 2023 2022 2023 2022 (in millions) (in millions) Derivative financial instruments in a cash flow hedge relationship: Foreign exchange contracts $ (10) $ 1 Net revenue $ (6) $ 7 Interest rate contracts $ — $ — Interest expense $ (2) $ (2) Derivative financial instruments in a net investment hedge relationship: Foreign exchange contracts $ (39) $ 35 |
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 March 31, Derivatives not designated as hedging instruments: 2023 2022 (in millions) Foreign exchange derivative contracts General and administrative $ 15 $ 1 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - Dynamic Yield $ in Millions | 1 Months Ended |
Apr. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Interests acquired (percent) | 100% |
Total consideration | $ 325 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net Revenue | $ 5,748 | $ 5,167 |
North American Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Revenue | 1,896 | 1,730 |
International Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Revenue | 3,852 | 3,437 |
Payment network | ||
Disaggregation of Revenue [Line Items] | ||
Net Revenue | 3,650 | 3,399 |
Value-added services and solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Revenue | $ 2,098 | $ 1,768 |
Revenue - Location on Balance S
Revenue - Location on Balance Sheet of Amounts Recognized From Contracts With Customers (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables from contracts with customers | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 3,271 | $ 3,213 |
Prepaid Expenses and Other Current Assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 142 | 118 |
Other Assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 511 | 442 |
Other current liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 634 | 434 |
Other Liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 266 | $ 248 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized from performance obligations | $ 371 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator | ||
Net income | $ 2,361 | $ 2,631 |
Denominator | ||
Basic weighted-average shares outstanding (in shares) | 953 | 977 |
Diluted weighted-average shares outstanding (in shares) | 3 | 4 |
Diluted weighted-average shares outstanding (in shares) | 956 | 981 |
Earnings per Share | ||
Basic (in dollars per share) | $ 2.48 | $ 2.69 |
Diluted (in dollars per share) | $ 2.47 | $ 2.68 |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 6,566 | $ 7,008 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 8,800 | 9,196 | $ 9,215 | $ 9,902 |
Restricted cash for litigation settlement | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | 596 | 589 | ||
Restricted security deposits held for customers | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | 1,608 | 1,568 | ||
Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | $ 30 | $ 31 |
Investments - Investments (Deta
Investments - Investments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | $ 271 | $ 272 |
Held-to-maturity securities | 131 | 128 |
Total investments | $ 402 | $ 400 |
Investments - Available-for-Sal
Investments - Available-for-Sale Investment Securities, Unrealized Gains and Losses (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 275 | $ 278 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (4) | (6) |
Fair Value | 271 | 272 |
Government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 96 | 91 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (1) | (2) |
Fair Value | 95 | 89 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 179 | 187 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (3) | (4) |
Fair Value | $ 176 | $ 183 |
Investments - Maturity Distribu
Investments - Maturity Distribution Based on Contractual Terms of Investment Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Available-For-Sale Amortized Cost | ||
Due within 1 year | $ 156 | |
Due after 1 year through 5 years | 119 | |
Amortized Cost | 275 | $ 278 |
Available-For-Sale Fair Value | ||
Due within 1 year | 155 | |
Due after 1 year through 5 years | 116 | |
Total | $ 271 | $ 272 |
Investments - Equity Investment
Investments - Equity Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Increase (Decrease) In Equity Investments [Roll Forward] | ||
Marketable securities, beginning balance | $ 399 | |
Marketable securities, Purchases | 0 | |
Marketable securities, Sales | 0 | |
Marketable securities, Changes in Fair Value | (66) | |
Marketable Securities, Other | 3 | |
Marketable securities, ending balance | 336 | |
Nonmarketable securities, beginning balance | 1,331 | |
Nonmarketable Securities, Purchases | 22 | |
Nonmarketable Securities, Sales | (44) | |
Nonmarketable Securities, Changes in Fair Value | (146) | |
Nonmarketable Securities, Other | 4 | |
Nonmarketable securities, ending balance | 1,167 | |
Total equity investments, beginning balance | 1,730 | |
Total equity investments, Purchases | 22 | |
Total equity investments, Sales | (44) | $ 0 |
Total equity investments, Changes in Fair Value | (212) | |
Total equity investments, Other | 7 | |
Total equity investments, ending balance | $ 1,503 |
Investments - Components of Non
Investments - Components of Nonmarketable securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Marketable Securities [Abstract] | ||
Measurement alternative | $ 958 | $ 1,087 |
Equity method | 209 | 244 |
Total Nonmarketable securities | $ 1,167 | $ 1,331 |
Investments - Carrying Value of
Investments - Carrying Value of Measurement Alternative Investments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Alternative Investment, Initial Cost Basis | $ 504 | |
Alternative Investment, Upward Price Adjustment, Cumulative Amount | 620 | |
Alternative Investment, Downward Price Adjustment Including Impairment, Cumulative Amount | (166) | |
Measurement alternative | $ 958 | $ 1,087 |
Investments - Unrealized Gains
Investments - Unrealized Gains (Losses) Included in the Carrying Value of Measurement Alternative Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Alternative Investments, Upward Price Adjustment, Annual Amount | $ 0 | $ 86 |
Alternative Investment, Downward Price Adjustment Including Impairment, Annual Amount | (133) | 0 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ (66) | $ (162) |
Fair Value Measurements - Distr
Fair Value Measurements - Distribution of Financial Instruments, Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Deferred compensation assets | $ 81 | $ 74 |
Foreign exchange derivative liabilities | 43 | 21 |
Deferred compensation liabilities | 80 | 73 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Deferred compensation assets | 81 | 74 |
Foreign exchange derivative liabilities | 0 | 0 |
Deferred compensation liabilities | 80 | 73 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Foreign exchange derivative liabilities | 43 | 21 |
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 |
Government and agency securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 95 | 89 |
Government and agency securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 31 | 35 |
Government and agency securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 64 | 54 |
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 | 176 | 183 |
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 | 176 | 183 |
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 | 336 | 399 |
Equity securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 336 | 399 |
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 | 47 | 108 |
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 | 47 | 108 |
Foreign exchange contracts | Fair Value, Inputs, Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instrument | 0 | 0 |
Interest rate contracts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Foreign exchange derivative liabilities | 89 | 105 |
Interest rate contracts | Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Foreign exchange derivative liabilities | 0 | 0 |
Interest rate contracts | Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Foreign exchange derivative liabilities | 89 | 105 |
Interest rate contracts | Fair Value, Inputs, Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Foreign exchange derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, long-term and short-term, combined amount | $ 15,568 | $ 14,023 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 14,600 | $ 12,700 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets - Schedule of Prepaid Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets [Abstract] | ||
Customer and merchant incentives | $ 1,448 | $ 1,392 |
Prepaid income taxes | 25 | 34 |
Other | 1,028 | 920 |
Total prepaid expenses and other current assets | $ 2,501 | $ 2,346 |
Prepaid Expenses and Other As_4
Prepaid Expenses and Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets [Abstract] | ||
Customer and merchant incentives | $ 4,715 | $ 4,578 |
Equity investments | 1,503 | 1,730 |
Income taxes receivable | 691 | 633 |
Other | 732 | 639 |
Total other assets | $ 7,641 | $ 7,580 |
Accrued Expenses and Accrued _3
Accrued Expenses and Accrued Litigation - Accrued Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Customer and merchant incentives | $ 5,619 | $ 5,600 |
Personnel costs | 589 | 1,322 |
Income and other taxes | 588 | 279 |
Other | 514 | 600 |
Total accrued expenses | $ 7,310 | $ 7,801 |
Accrued Expenses and Accrued _4
Accrued Expenses and Accrued Litigation - Accrued Litigation Expense (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Long-term customer and merchant incentives | $ 2,433 | $ 2,293 |
Provision for litigation | $ 1,107 | $ 1,094 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) € in Millions, $ in Millions, ₨ in Billions | Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Jul. 31, 2022 INR (₨) | Feb. 28, 2022 EUR (€) | Dec. 31, 2021 | Dec. 31, 2015 EUR (€) |
Debt Instrument [Line Items] | |||||||
Long-term debt and short-term debt, gross | $ 15,775 | $ 14,239 | |||||
Less: Unamortized discount and debt issuance costs | (118) | (111) | |||||
Less: Cumulative hedge accounting fair value adjustment | (89) | (105) | |||||
Total debt outstanding | 15,568 | 14,023 | |||||
Less: short-term debt | (276) | (274) | |||||
Long-term debt | $ 15,292 | 13,749 | |||||
2022 INR Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 8.64% | 8.64% | |||||
Effective interest rate | 9.09% | 9.09% | |||||
Short-term debt | $ 277 | 275 | ₨ 22.7 | ||||
Senior Notes | March 2028 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.875% | 4.875% | |||||
Long-term debt, gross | $ 750 | 0 | |||||
Effective interest rate | 5.003% | 5.003% | |||||
Senior Notes | March 2033 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.85% | 4.85% | |||||
Long-term debt, gross | $ 750 | 0 | |||||
Effective interest rate | 4.923% | 4.923% | |||||
Senior Notes | February 2029 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1% | 1% | |||||
Long-term debt, gross | $ 815 | 800 | € 750 | ||||
Effective interest rate | 1.138% | 1.138% | |||||
Senior Notes | November 2031 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2% | 2% | |||||
Long-term debt, gross | $ 750 | 750 | |||||
Effective interest rate | 2.112% | 2.112% | |||||
Senior Notes | March 2031 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.90% | 1.90% | |||||
Long-term debt, gross | $ 600 | 600 | |||||
Effective interest rate | 1.981% | 1.981% | |||||
Senior Notes | March 2051 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.95% | 2.95% | |||||
Long-term debt, gross | $ 700 | 700 | |||||
Effective interest rate | 3.013% | 3.013% | |||||
Senior Notes | 2027 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.30% | 3.30% | |||||
Long-term debt, gross | $ 1,000 | 1,000 | |||||
Effective interest rate | 3.42% | 3.42% | |||||
Senior Notes | 2030 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.35% | 3.35% | |||||
Long-term debt, gross | $ 1,500 | 1,500 | |||||
Effective interest rate | 3.43% | 3.43% | |||||
Senior Notes | Senior Notes Due March 2050 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.85% | 3.85% | 3.85% | ||||
Long-term debt, gross | $ 1,500 | 1,500 | |||||
Effective interest rate | 3.896% | 3.896% | |||||
Senior Notes | 2029 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.95% | 2.95% | |||||
Long-term debt, gross | $ 1,000 | 1,000 | |||||
Effective interest rate | 3.03% | 3.03% | |||||
Senior Notes | 2049 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.65% | 3.65% | |||||
Long-term debt, gross | $ 1,000 | 1,000 | |||||
Effective interest rate | 3.689% | 3.689% | |||||
Senior Notes | 2025 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2% | 2% | |||||
Long-term debt, gross | $ 750 | 750 | |||||
Effective interest rate | 2.147% | 2.147% | |||||
Senior Notes | 2028 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.50% | 3.50% | |||||
Long-term debt, gross | $ 500 | 500 | |||||
Effective interest rate | 3.598% | 3.598% | |||||
Senior Notes | 2048 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.95% | 3.95% | |||||
Long-term debt, gross | $ 500 | 500 | |||||
Effective interest rate | 3.99% | 3.99% | |||||
Senior Notes | 2026 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.95% | 2.95% | |||||
Long-term debt, gross | $ 750 | 750 | |||||
Effective interest rate | 3.044% | 3.044% | |||||
Senior Notes | 2046 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.80% | 3.80% | |||||
Long-term debt, gross | $ 600 | 600 | |||||
Effective interest rate | 3.893% | 3.893% | |||||
Senior Notes | 2.1% Notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.10% | 2.10% | |||||
Long-term debt, gross | $ 870 | 854 | |||||
Effective interest rate | 2.189% | 2.189% | |||||
Senior Notes | 2.5% Notes due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.50% | 2.50% | |||||
Long-term debt, gross | $ 163 | 160 | |||||
Effective interest rate | 2.562% | 2.562% | |||||
Senior Notes | 2024 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.375% | 3.375% | |||||
Long-term debt, gross | $ 1,000 | $ 1,000 | |||||
Effective interest rate | 3.484% | 3.484% | |||||
Senior Notes | 2015 Euro Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | € | € 950 | € 1,650 |
Debt - Narrative (Details)
Debt - Narrative (Details) ₨ in Millions, $ in Millions | 1 Months Ended | ||||||
Apr. 30, 2023 USD ($) | Apr. 30, 2023 INR (₨) | Mar. 31, 2023 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2022 INR (₨) | Apr. 30, 2023 INR (₨) | Dec. 31, 2022 USD ($) | |
2022 INR Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of debt | $ 284 | ₨ 22,600 | |||||
Short-term debt | $ 277 | ₨ 22,700 | $ 275 | ||||
2023 INR Term Loan | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of debt | $ 61 | ₨ 4,960 | |||||
Short-term debt | $ 61 | ₨ 4,970 | |||||
Senior Notes | March 2028 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 750 | 0 | |||||
Senior Notes | March 2033 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 750 | $ 0 | |||||
Senior Notes | Notes Issued 2023, USD | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of debt | $ 1,489 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Dividends Payable [Line Items] | ||
Total dividends declared | $ 541 | $ 477 |
Common Stock | ||
Dividends Payable [Line Items] | ||
Dividends declared per share | $ 0.57 | $ 0.49 |
Retained Earnings | ||
Dividends Payable [Line Items] | ||
Total dividends declared | $ 541 | $ 477 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Shares Activity (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Purchases of treasury stock | (8) | (6.8) |
Common Stock | Class A | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | 948.4 | 972.1 |
Purchases of treasury stock | (8) | (6.8) |
Share-based payments | 0.9 | 1.1 |
Conversion of Class B to Class A common stock | 0.1 | 0.1 |
Balance at end of period | 941.4 | 966.5 |
Common Stock | Class B | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | 7.6 | 7.8 |
Purchases of treasury stock | 0 | 0 |
Share-based payments | 0 | 0 |
Conversion of Class B to Class A common stock | (0.1) | (0.1) |
Balance at end of period | 7.5 | 7.7 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Billions | Mar. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2021 |
Equity, Class of Treasury Stock [Line Items] | |||
Remaining authorization | $ 9.3 | ||
December 2020 Share Repurchase Plan | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amounts under stock repurchase program | $ 8 | ||
November 2021 Share Repurchase Plan | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amounts under stock repurchase program | $ 9 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Repurchases and Authorizations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Dollar-value of shares repurchased 1 | $ 2,878 | $ 2,408 |
Shares repurchased | 8 | 6.8 |
Average price paid per share | $ 361.70 | $ 355.13 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 6,356 | $ 7,383 |
Balance at end of period | 5,386 | 7,102 |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,414) | (739) |
Increase / (Decrease) | 80 | (52) |
Reclassifications | 0 | 0 |
Balance at end of period | (1,334) | (791) |
Translation adjustments on net investment hedge | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 309 | 34 |
Increase / (Decrease) | (57) | 67 |
Reclassifications | 0 | 0 |
Balance at end of period | 252 | 101 |
Defined benefit pension and other postretirement plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (11) | 21 |
Increase / (Decrease) | 0 | 0 |
Reclassifications | 0 | 0 |
Balance at end of period | (11) | 21 |
Investment securities available-for-sale | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (6) | (1) |
Increase / (Decrease) | 2 | (1) |
Reclassifications | 0 | 0 |
Balance at end of period | (4) | (2) |
Accumulated other comprehensive income (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,253) | (809) |
Increase / (Decrease) | 15 | 15 |
Reclassifications | 9 | (4) |
Balance at end of period | (1,229) | (798) |
Foreign exchange contracts | Cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (8) | 4 |
Increase / (Decrease) | (10) | 1 |
Reclassifications | 8 | (5) |
Balance at end of period | (10) | 0 |
Interest rate contracts | Cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (123) | (128) |
Increase / (Decrease) | 0 | 0 |
Reclassifications | 1 | 1 |
Balance at end of period | $ (122) | $ (127) |
Share-Based Payments - Types of
Share-Based Payments - Types of Equity Awards (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
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 | $ 123 |
Restricted stock units | |
Share-Based Payments | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 1.1 |
Share-Based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted-Average Grant-Date Fair Value | $ / shares | $ 349 |
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 | $ 365 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Share-based Payment Arrangement, Option | |
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 | 29.60% |
Share-Based Compensation Arrangement By Share-based Payment Award Options Term | 10 years |
Share-Based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Restricted Stock Units (RSUs) Granted On or After March 1, 2020 | |
Share-Based Payments | |
Share-Based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
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) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 17.20% | 5.10% |
Valuation allowance release | $ 333 |
Legal and Regulatory Proceedi_2
Legal and Regulatory Proceedings (Details) £ in Millions, € in Billions | 1 Months Ended | 3 Months Ended | ||||||||
Jan. 31, 2021 USD ($) defendant | Sep. 30, 2019 USD ($) | Oct. 31, 2011 plaintiff | Feb. 28, 2011 | Mar. 31, 2023 USD ($) fax | Mar. 31, 2023 GBP (£) fax | Mar. 31, 2023 EUR (€) fax | Mar. 31, 2023 GBP (£) | Dec. 31, 2022 USD ($) | Jul. 31, 2019 | |
Legal And Regulatory | ||||||||||
Accrued litigation | $ 1,107,000,000 | $ 1,094,000,000 | ||||||||
Loss contingency accrual, period increase | 211,000,000 | |||||||||
Restricted cash for litigation settlement | $ 596,000,000 | 589,000,000 | ||||||||
Unsolicited faxes | fax | 381,000 | 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% | |||||||||
Event Involving Member Banks and Mastercard | ||||||||||
Legal And Regulatory | ||||||||||
Percent of settlement Mastercard would pay | 36% | |||||||||
U.S. Merchant Lawsuit Settlement | ||||||||||
Legal And Regulatory | ||||||||||
Accrued litigation | 1,094,000,000 | $ 894,000,000 | ||||||||
Maximum | U.S. Merchant Litigation - Class Litigation | ||||||||||
Legal And Regulatory | ||||||||||
Percentage of merchant opt outs to terminate agreement | 25% | |||||||||
2022 Mastercard and Visa Proposed Collective Action Complaint in the U.K. | ||||||||||
Legal And Regulatory | ||||||||||
Amount of damages sought (that exceeds) | 600,000,000 | £ 500 | ||||||||
Proposed U.K. Interchange Collective Action | ||||||||||
Legal And Regulatory | ||||||||||
Amount of damages sought (that exceeds) | 17,000,000,000 | £ 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 defendants | defendant | 4 | |||||||||
Portugal Proposed Interchange Collective Action | ||||||||||
Legal And Regulatory | ||||||||||
Amount of damages sought (that exceeds) | 400,000,000 | € 0.4 | ||||||||
Unresolved | U.K. Merchant Lawsuit Settlement | ||||||||||
Legal And Regulatory | ||||||||||
Unresolved damages claims | $ 700,000,000 | £ 600 |
Settlement and Other Risk Man_3
Settlement and Other Risk Management - Estimated Settlement Exposure (Details) - Guarantee Obligations - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Risks Inherent in Servicing Assets and Servicing Liabilities | ||
Gross settlement exposure | $ 64,833 | $ 64,885 |
Risk mitigation arrangements applied to settlement exposure | (9,587) | (10,697) |
Net settlement exposure | $ 55,246 | $ 54,188 |
Settlement and Other Risk Man_4
Settlement and Other Risk Management - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Settlement and Other Risk Management [Abstract] | ||
Travelers cheques outstanding, notional value | $ 342 | $ 342 |
Travelers cheques covered by collateral arrangements | $ 273 | $ 273 |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments - Narrative (Details) $ in Millions, € in Billions | 3 Months Ended | |||||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | |
Foreign Exchange Risk Management | ||||||
Unrealized gain (loss) on net investment hedges, before tax | $ (39) | $ 35 | ||||
Senior Notes Due March 2050 | Senior Notes | ||||||
Foreign Exchange Risk Management | ||||||
Long-term debt related to interest rate swap | $ 1,000 | |||||
Stated interest rate | 3.85% | 3.85% | 3.85% | |||
Euro-Denominated Debt | ||||||
Foreign Exchange Risk Management | ||||||
Unrealized gain (loss) on net investment hedges, before tax | $ (35) | $ 51 | ||||
Cash Flow Hedging | Interest Rate Risk | ||||||
Foreign Exchange Risk Management | ||||||
Estimated amount to be reclassified into interest expense within next 12 months | $ 21 | |||||
Terms of the foreign currency forward contracts and foreign currency option contracts, less than | 18 months | |||||
Net Investment Hedging | ||||||
Foreign Exchange Risk Management | ||||||
Notional amount designated | € | € 1.7 | € 1.7 | ||||
Net Investment Hedging | Euro-Denominated Debt | ||||||
Foreign Exchange Risk Management | ||||||
Net foreign currency transaction after tax loss in AOCI | $ 252 | $ 309 |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments - Fair Value of Company's Derivative Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Foreign Exchange Risk Management | ||
Notional | $ 5,926 | $ 3,977 |
Derivative assets | 47 | 108 |
Derivative liabilities | 132 | 126 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Prepaid Expenses, Other Current Assets, and Other Current Liabilities | ||
Foreign Exchange Risk Management | ||
Notional | 1,988 | 521 |
Derivative assets | 26 | 1 |
Derivative liabilities | 8 | 2 |
Cash Flow Hedging | Derivatives designated as hedging instruments | Foreign exchange contracts | Prepaid Expenses, Other Current Assets, and Other Current Liabilities | ||
Foreign Exchange Risk Management | ||
Notional | 709 | 642 |
Derivative assets | 5 | 4 |
Derivative liabilities | 19 | 15 |
Fair Value Hedging | Derivatives designated as hedging instruments | Interest rate contracts | Other Current Liabilities and Other Liabilities | ||
Foreign Exchange Risk Management | ||
Notional | 1,000 | |
Derivative assets | 0 | |
Derivative liabilities | 89 | |
Fair Value Hedging | Derivatives designated as hedging instruments | Interest rate contracts | Prepaid Expenses, Other Current Assets, and Other Liabilities | ||
Foreign Exchange Risk Management | ||
Notional | 1,000 | |
Derivative assets | 0 | |
Derivative liabilities | 105 | |
Net Investment Hedging | Derivatives designated as hedging instruments | Foreign exchange contracts | Prepaid Expenses, Other Current Assets, and Other Current Liabilities | ||
Foreign Exchange Risk Management | ||
Notional | 2,229 | 1,814 |
Derivative assets | 16 | 103 |
Derivative liabilities | $ 16 | $ 4 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Foreign Exchange Risk Management | ||
Unrealized gain (loss) on cash flow hedges, before tax | $ (10) | $ 1 |
Realized gain (loss) on cash flow hedges reclassified from AOCI | (8) | 5 |
Unrealized gain (loss) on net investment hedges, before tax | (39) | 35 |
Foreign exchange contracts | ||
Foreign Exchange Risk Management | ||
Unrealized gain (loss) on cash flow hedges, before tax | (10) | 1 |
Foreign exchange contracts | Net revenue | ||
Foreign Exchange Risk Management | ||
Realized gain (loss) on cash flow hedges reclassified from AOCI | (6) | 7 |
Interest rate contracts | ||
Foreign Exchange Risk Management | ||
Unrealized gain (loss) on cash flow hedges, before tax | 0 | 0 |
Interest rate contracts | Interest expense | ||
Foreign Exchange Risk Management | ||
Realized gain (loss) on cash flow hedges reclassified from AOCI | $ (2) | $ (2) |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Foreign Exchange Risk Management | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | General and administrative | General and administrative |
Foreign exchange contracts | ||
Foreign Exchange Risk Management | ||
Gain (loss) for contracts to purchase and sell foreign currency | $ 15 | $ 1 |