Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | MA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 916,710,583 | |
2.1% Notes due 2027 | ||
Title of 12(b) Security | 2.1% Notes due 2027 | |
Trading Symbol | MA27 | |
Security Exchange Name | NYSE | |
1.0% Notes due 2029 | ||
Title of 12(b) Security | 1.0% Notes due 2029 | |
Trading Symbol | MA29A | |
Security Exchange Name | NYSE | |
2.5% Notes due 2030 | ||
Title of 12(b) Security | 2.5% Notes due 2030 | |
Trading Symbol | MA30 | |
Security Exchange Name | NYSE | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 7,124,405 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net Revenue | $ 6,961 | $ 6,269 | $ 13,309 | $ 12,017 |
Operating Expenses: | ||||
General and administrative | 2,418 | 2,200 | 4,704 | 4,243 |
Advertising and marketing | 184 | 201 | 300 | 368 |
Depreciation and amortization | 225 | 192 | 441 | 383 |
Provision for litigation | 98 | 20 | 224 | 231 |
Total operating expenses | 2,925 | 2,613 | 5,669 | 5,225 |
Operating income | 4,036 | 3,656 | 7,640 | 6,792 |
Other Income (Expense): | ||||
Investment income | 60 | 59 | 155 | 114 |
Gains (losses) on equity investments, net | (13) | 123 | (7) | (89) |
Interest expense | (153) | (144) | (303) | (276) |
Other income (expense), net | 9 | 10 | 12 | 16 |
Total other income (expense) | (97) | 48 | (143) | (235) |
Income before income taxes | 3,939 | 3,704 | 7,497 | 6,557 |
Income tax expense | 681 | 859 | 1,228 | 1,351 |
Net Income | $ 3,258 | $ 2,845 | $ 6,269 | $ 5,206 |
Basic Earnings per Share (in dollars per share) | $ 3.51 | $ 3.01 | $ 6.74 | $ 5.48 |
Basic weighted-average shares outstanding (in shares) | 929 | 946 | 931 | 949 |
Diluted Earnings per Share (in dollars per share) | $ 3.50 | $ 3 | $ 6.72 | $ 5.47 |
Diluted weighted-average shares outstanding (in shares) | 930 | 949 | 933 | 952 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 3,258 | $ 2,845 | $ 6,269 | $ 5,206 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (46) | 53 | (214) | 147 |
Income tax effect | 18 | 0 | 27 | (14) |
Foreign currency translation adjustments, net of income tax effect | (28) | 53 | (187) | 133 |
Translation adjustments on net investment hedges | 2 | (11) | 49 | (85) |
Income tax effect | 0 | 2 | (11) | 19 |
Translation adjustments on net investment hedges, net of income tax effect | 2 | (9) | 38 | (66) |
Cash flow hedges | 91 | (14) | 113 | (24) |
Income tax effect | (3) | 6 | (8) | 6 |
Reclassification adjustments for cash flow hedges | (68) | 9 | (63) | 17 |
Income tax effect | 1 | (5) | (1) | (4) |
Cash flow hedges, net of income tax effect | 21 | (4) | 41 | (5) |
Defined benefit pension and other postretirement plans | 2 | 0 | 2 | 0 |
Income tax effect | 0 | 0 | 0 | 0 |
Reclassification adjustments for defined benefit pension and other postretirement plans | 0 | 0 | 0 | 0 |
Income tax effect | 0 | 0 | 0 | 0 |
Defined benefit pension and other postretirement plans, net of income tax effect | 2 | 0 | 2 | 0 |
Investment securities available-for-sale | 0 | 0 | 0 | 2 |
Income tax effect | 0 | 0 | 0 | 0 |
Investment securities available-for-sale, net of income tax effect | 0 | 0 | 0 | 2 |
Other comprehensive income (loss), net of income tax effect | (3) | 40 | (106) | 64 |
Comprehensive Income | $ 3,255 | $ 2,885 | $ 6,163 | $ 5,270 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 6,996 | $ 8,588 |
Restricted security deposits held for customers | 1,772 | 1,845 |
Investments | 362 | 592 |
Accounts receivable | 4,195 | 4,060 |
Settlement assets | 1,514 | 1,233 |
Prepaid expenses and other current assets | 2,941 | 2,643 |
Total current assets | 17,780 | 18,961 |
Property, equipment and right-of-use assets, net of accumulated depreciation and amortization of $2,373 and $2,237, respectively | 2,148 | 2,061 |
Deferred income taxes | 1,423 | 1,355 |
Goodwill | 7,563 | 7,660 |
Other intangible assets, net of accumulated amortization of $2,290 and $2,209, respectively | 4,149 | 4,086 |
Other assets | 9,270 | 8,325 |
Total Assets | 42,333 | 42,448 |
Current liabilities: | ||
Accounts payable | 835 | 834 |
Settlement obligations | 1,594 | 1,399 |
Restricted security deposits held for customers | 1,772 | 1,845 |
Accrued litigation | 525 | 723 |
Accrued expenses | 8,007 | 8,517 |
Short-term debt | 1,086 | 1,337 |
Other current liabilities | 1,775 | 1,609 |
Total current liabilities | 15,594 | 16,264 |
Long-term debt | 14,519 | 14,344 |
Deferred income taxes | 337 | 369 |
Other liabilities | 4,401 | 4,474 |
Total Liabilities | 34,851 | 35,451 |
Commitments and Contingencies | ||
Redeemable Non-controlling Interests | 22 | 22 |
Stockholders’ Equity | ||
Additional paid-in-capital | 6,089 | 5,893 |
Class A treasury stock, at cost, 485 and 475 shares, respectively | (65,067) | (60,429) |
Retained earnings | 67,604 | 62,564 |
Accumulated other comprehensive income (loss) | (1,205) | (1,099) |
Mastercard Incorporated Stockholders' Equity | 7,421 | 6,929 |
Non-controlling interests | 39 | 46 |
Total Equity | 7,460 | 6,975 |
Total Liabilities, Redeemable Non-controlling Interests and Equity | 42,333 | 42,448 |
Class A Common Stock | ||
Stockholders’ Equity | ||
Common stock | 0 | 0 |
Class B Common Stock | ||
Stockholders’ Equity | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accumulated depreciation and amortization | $ 2,373 | $ 2,237 |
Other intangible assets, accumulated amortization | $ 2,290 | $ 2,209 |
Class A treasury stock (in shares) | 485,000,000 | 475,000,000 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, issued (in shares) | 1,403,000,000 | 1,402,000,000 |
Common stock, outstanding (in shares) | 919,000,000 | 927,000,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common stock, issued (in shares) | 7,000,000 | 7,000,000 |
Common stock, outstanding (in shares) | 7,000,000 | 7,000,000 |
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, 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 | 5,206 | 5,206 | 5,206 | ||||||
Activity related to non-controlling interests | (5) | (5) | |||||||
Redeemable non-controlling interest adjustments | (4) | (4) | (4) | ||||||
Other comprehensive income (loss) | 64 | 64 | 64 | ||||||
Dividends | (1,079) | (1,079) | (1,079) | ||||||
Purchases of treasury stock | (5,317) | (5,317) | (5,317) | ||||||
Share-based payments | 336 | 324 | 12 | 336 | |||||
Balance at end of period at Jun. 30, 2023 | 5,557 | 0 | 0 | 5,622 | (56,659) | 57,730 | (1,189) | 5,504 | 53 |
Balance at beginning of period at Mar. 31, 2023 | 5,386 | 0 | 0 | 5,376 | (54,241) | 55,424 | (1,229) | 5,330 | 56 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,845 | 2,845 | 2,845 | ||||||
Activity related to non-controlling interests | (3) | (3) | |||||||
Redeemable non-controlling interest adjustments | (1) | (1) | (1) | ||||||
Other comprehensive income (loss) | 40 | 40 | 40 | ||||||
Dividends | (538) | (538) | (538) | ||||||
Purchases of treasury stock | (2,423) | (2,423) | (2,423) | ||||||
Share-based payments | 251 | 246 | 5 | 251 | |||||
Balance at end of period at Jun. 30, 2023 | 5,557 | 0 | 0 | 5,622 | (56,659) | 57,730 | (1,189) | 5,504 | 53 |
Balance at beginning of period at Dec. 31, 2023 | 6,975 | 0 | 0 | 5,893 | (60,429) | 62,564 | (1,099) | 6,929 | 46 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 6,269 | 6,269 | 6,269 | ||||||
Activity related to non-controlling interests | (7) | (7) | |||||||
Redeemable non-controlling interest adjustments | (3) | (3) | (3) | ||||||
Other comprehensive income (loss) | (106) | (106) | (106) | ||||||
Dividends | (1,226) | (1,226) | (1,226) | ||||||
Purchases of treasury stock | (4,646) | (4,646) | (4,646) | ||||||
Share-based payments | 204 | 196 | 8 | 204 | |||||
Balance at end of period at Jun. 30, 2024 | 7,460 | 0 | 0 | 6,089 | (65,067) | 67,604 | (1,205) | 7,421 | 39 |
Balance at beginning of period at Mar. 31, 2024 | 7,286 | 0 | 0 | 5,920 | (62,434) | 64,959 | (1,202) | 7,243 | 43 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 3,258 | 3,258 | 3,258 | ||||||
Activity related to non-controlling interests | (4) | (4) | |||||||
Redeemable non-controlling interest adjustments | (2) | (2) | (2) | ||||||
Other comprehensive income (loss) | (3) | (3) | (3) | ||||||
Dividends | (611) | (611) | (611) | ||||||
Purchases of treasury stock | (2,633) | (2,633) | (2,633) | ||||||
Share-based payments | 169 | 169 | 169 | ||||||
Balance at end of period at Jun. 30, 2024 | $ 7,460 | $ 0 | $ 0 | $ 6,089 | $ (65,067) | $ 67,604 | $ (1,205) | $ 7,421 | $ 39 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Activities | ||
Net income | $ 6,269 | $ 5,206 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of customer incentives | 826 | 782 |
Depreciation and amortization | 441 | 383 |
(Gains) losses on equity investments, net | 7 | 89 |
Share-based compensation | 263 | 243 |
Deferred income taxes | (93) | 24 |
Other | 80 | 37 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (234) | (268) |
Settlement assets | (284) | (108) |
Prepaid expenses | (1,980) | (1,286) |
Accrued litigation and legal settlements | (197) | (20) |
Restricted security deposits held for customers | (73) | 155 |
Accounts payable | 9 | (287) |
Settlement obligations | 199 | 31 |
Accrued expenses | (415) | (707) |
Net change in other assets and liabilities | (8) | 343 |
Net cash provided by operating activities | 4,810 | 4,617 |
Investing Activities | ||
Purchases of investment securities available-for-sale | (219) | (157) |
Purchases of investments held-to-maturity | (81) | (31) |
Proceeds from sales of investment securities available-for-sale | 58 | 45 |
Proceeds from maturities of investment securities available-for-sale | 139 | 102 |
Proceeds from maturities of investments held-to-maturity | 306 | 91 |
Purchases of property and equipment | (272) | (190) |
Capitalized software | (402) | (395) |
Purchases of equity investments | (18) | (53) |
Proceeds from sales of equity investments | 23 | 44 |
Other investing activities | (2) | (71) |
Net cash used in investing activities | (468) | (615) |
Financing Activities | ||
Purchases of treasury stock | (4,631) | (5,294) |
Dividends paid | (1,231) | (1,086) |
Proceeds from debt, net | 983 | 1,550 |
Payment of debt | (1,000) | 0 |
Tax withholdings related to share-based payments | (174) | (79) |
Cash proceeds from exercise of stock options | 115 | 172 |
Other financing activities | 0 | 3 |
Net cash used in financing activities | (5,938) | (4,734) |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (67) | 57 |
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents | (1,663) | (675) |
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period | 10,465 | 9,196 |
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period | $ 8,802 | $ 8,521 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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 payments 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 June 30, 2024 and December 31, 2023, there were no significant VIEs that required consolidation and the investment s were not considered material to the consolidated financial statements. The Company consolidates acquisitions as of the date the Company has obtained a controlling financial interest. Intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the 2024 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, 2023 was derived from the audited consolidated financial statements as of December 31, 2023. The consolidated financial statements for the three and six months ended June 30, 2024 and 2023 and as of June 30, 2024 are unaudited, and in the opinion of management, include all normal recurring adjustments that are necessary to present fairly the results for interim periods. The results of operations for the three and six months ended June 30, 2024 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, 2023 for additional disclosures, including a summary of the Company’s significant accounting policies. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Net revenue by category: Payment network $ 4,375 $ 4,073 $ 8,295 $ 7,723 Value-added services and solutions 2,586 2,196 5,014 4,294 Net revenue $ 6,961 $ 6,269 $ 13,309 $ 12,017 Net revenue by geographic region: Americas 1 $ 3,164 $ 2,814 $ 5,937 $ 5,351 Asia Pacific, Europe, Middle East and Africa 3,797 3,455 7,372 6,666 Net revenue $ 6,961 $ 6,269 $ 13,309 $ 12,017 1 Americas includes the United States, Canada and Latin America. Prior period amounts have been reclassified to conform to the new presentation. The Company’s customers are generally billed weekly, with certain billings occurring on a monthly and quarterly basis. The frequency of billing 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: June 30, December 31, (in millions) Receivables from contracts with customers Accounts receivable $ 3,991 $ 3,851 Contract assets Prepaid expenses and other current assets 133 133 Other assets 434 387 Deferred revenue 1 Other current liabilities 711 459 Other liabilities 333 318 1 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions, except per share data) Numerator Net income $ 3,258 $ 2,845 $ 6,269 $ 5,206 Denominator Basic weighted-average shares outstanding 929 946 931 949 Dilutive stock options and stock units 2 2 2 3 Diluted weighted-average shares outstanding 1 930 949 933 952 Earnings per Share Basic $ 3.51 $ 3.01 $ 6.74 $ 5.48 Diluted $ 3.50 $ 3.00 $ 6.72 $ 5.47 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 the components 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. June 30, December 31, (in millions) Cash and cash equivalents $ 6,996 $ 8,588 Restricted cash and restricted cash equivalents Restricted security deposits held for customers 1,772 1,845 Prepaid expenses and other current assets 34 32 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 8,802 $ 10,465 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
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’s strategic investments in equity securities of publicly traded and privately held companies are classified within other assets on the consolidated balance sheet (see Equity Investments section below). Investments Investments on the consolidated balance sheet consisted of the following: June 30, December 31, (in millions) Available-for-sale securities $ 290 $ 286 Held-to-maturity securities 1 72 306 Total investments $ 362 $ 592 1 Held-to-maturity securities represent investments in time deposits that mature within one year. The cost of these securities approximates fair value. Investment income on the consolidated statement of operations primarily consists of interest income generated from cash, cash equivalents, held-to maturity 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 and six months ended June 30, 2024 and 2023 were not material. 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: June 30, 2024 December 31, 2023 Amortized Gross Gross Fair Amortized Gross Gross Fair (in millions) Government and agency securities $ 87 $ — $ — $ 87 $ 86 $ — $ — $ 86 Corporate securities 203 — — 203 200 1 (1) 200 Total $ 290 $ — $ — $ 290 $ 286 $ 1 $ (1) $ 286 The Company’s government and agency securities include U.S. government bonds, U.S. government sponsored agency bonds and foreign government bonds that are denominated in the national currency of the issuing country. Corporate securities held at June 30, 2024 and December 31, 2023, primarily carried a credit rating of A- or better. Corporate securities are comprised of commercial paper and corporate bonds. The gross unrealized gains and losses on the available-for-sale securities are primarily driven by changes in interest rates. For the available-for-sale securities in gross unrealized loss positions, the Company (1) does not intend to sell the securities, (2) more likely than not, will not be required to sell the securities before recovery of the unrealized losses and (3) expects that the contractual principal and interest will be received. 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 June 30, 2024 was as follows: Amortized Cost Fair Value (in millions) Due within 1 year $ 153 $ 153 Due after 1 year through 5 years 137 137 Total $ 290 $ 290 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, 2023 Purchases Sales Changes in Fair Value 1 Other 2 Balance at June 30, 2024 (in millions) Marketable securities $ 506 $ — $ (23) $ (9) $ 24 $ 498 Nonmarketable securities 1,223 18 — 2 (32) 1,211 Total equity investments $ 1,729 $ 18 $ (23) $ (7) $ (8) $ 1,709 1 Recorded in gains (losses) on equity investments, net on the consolidated statement of operations. 2 Includes reclasses between Marketable and Nonmarketable securities as well as translational impact of currency. The following table sets forth the components of the Company’s Nonmarketable securities: June 30, December 31, (in millions) Measurement alternative $ 988 $ 1,008 Equity method 223 215 Total Nonmarketable securities $ 1,211 $ 1,223 The following table summarizes the total carrying value of the Company’s Measurement alternative investments, including cumulative unrealized gains and losses through June 30, 2024: (in millions) Initial cost basis $ 534 Cumulative adjustments 1 : Upward adjustments 636 Downward adjustments (including impairment) (182) Carrying amount, end of period $ 988 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: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Measurement alternative investments: Upward adjustments $ — $ 6 $ 7 $ 6 Downward adjustments (including impairment) (1) (2) (4) (135) Marketable securities: Unrealized gains (losses), net (21) 121 (14) 55 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s financial instruments are carried at fair value, cost or amortized cost on the consolidated balance sheet. The Company classifies its fair value measurements of financial instruments into a three-level hierarchy (the “Valuation Hierarchy”). Financial Instruments - Carried at Fair Value Financial instruments carried at fair value are categorized for fair value measurement purposes as recurring or non-recurring in nature. 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: June 30, 2024 December 31, 2023 Quoted Prices Significant Significant Total Quoted Prices Significant Significant Total (in millions) Assets Investment securities available-for-sale 1 : Government and agency securities $ 39 $ 48 $ — $ 87 $ 33 $ 53 $ — $ 86 Corporate securities — 203 — 203 — 200 — 200 Derivative instruments 2 : Foreign exchange contracts — 113 — 113 — 36 — 36 Marketable securities 3 : Equity securities 498 — — 498 506 — — 506 Deferred compensation plan 4 : Deferred compensation assets 104 — — 104 93 — — 93 Liabilities Derivative instruments 2 : Foreign exchange contracts $ — $ 13 $ — $ 13 $ — $ 104 $ — $ 104 Interest rate contracts — 83 — 83 — 79 — 79 Deferred compensation plan 5 : Deferred compensation liabilities 102 — — 102 91 — — 91 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 measured at fair value are based on observable inputs such as broker quotes for similar derivative instruments. See Note 16 (Derivative and Hedging Instruments) for further details. 3 The Company’s Marketable securities are publicly held and 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. 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 5 (Investments) for further details. Financial Instruments - Not Carried at Fair Value Debt Debt instruments are carried on the consolidated balance sheet at amortized cost. 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 June 30, 2024, the carrying value and fair value of debt was $15.6 billion and $14.1 billion, respectively. At December 31, 2023, the carrying value and fair value of debt was $15.7 billion and $14.7 billion, respectively. See Note 9 (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, time deposits, accounts receivable, settlement assets, restricted cash and restricted cash equivalents, accounts payable, settlement obligations and other accrued liabilities. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, December 31, (in millions) Customer incentives $ 1,662 $ 1,570 Other 1,279 1,073 Total prepaid expenses and other current assets $ 2,941 $ 2,643 Other assets consisted of the following: June 30, December 31, (in millions) Customer incentives $ 5,959 $ 5,170 Equity investments 1,709 1,729 Income taxes receivable 846 783 Other 756 643 Total other assets $ 9,270 $ 8,325 Customer incentives represent payments made to customers 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 | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Accrued Litigation | Accrued Expenses and Accrued Litigation Accrued expenses consisted of the following: June 30, December 31, (in millions) Customer incentives $ 6,289 $ 6,219 Personnel costs 823 1,258 Income and other taxes 313 486 Other 582 554 Total accrued expenses $ 8,007 $ 8,517 Customer incentives represent amounts to be paid to customers under business agreements. As of June 30, 2024 and December 31, 2023, long-term customer incentives included in other liabilities were $2,786 million and $2,777 million, respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following: June 30, December 31, Effective (in millions) Senior Notes 2024 USD Notes 4.875 % Senior Notes due May 2034 $ 1,000 $ — 5.047 % 2023 USD Notes 4.875 % Senior Notes due March 2028 750 750 5.003 % 4.850 % Senior Notes due March 2033 750 750 4.923 % 2022 EUR Notes 1 1.000 % Senior Notes due February 2029 803 830 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 856 885 2.189 % 2.500 % Senior Notes due December 2030 160 166 2.562 % 2014 USD Notes 3.375 % Senior Notes due April 2024 — 1,000 3.484 % Other Debt 2023 INR Term Loan 3 9.430 % Term Loan due July 2024 337 338 9.780 % 15,806 15,869 Less: Unamortized discount and debt issuance costs (118) (109) Less: Cumulative hedge accounting fair value adjustments 4 (83) (79) Total debt outstanding 15,605 15,681 Less: Short-term debt 5 (1,086) (1,337) Long-term debt $ 14,519 $ 14,344 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 INR28.1 billion Indian rupee-denominated loan issued in July 2023. 4 The Company has an interest rate swap that is accounted for as a fair value hedge. See Note 16 (Derivative and Hedging Instruments) for additional information. 5 The 2019 USD Notes due March 2025 and the INR Term Loan due July 2024 are classified as short-term debt, net of unamortized discount and debt issuance costs, on the consolidated balance sheet as of June 30, 2024. The 2014 USD Notes due April 2024 and the INR Term Loan due July 2024 were classified as short-term debt, net of unamortized discount and debt issuance costs, on the consolidated balance sheet as of December 31, 2023. Senior Notes In May 2024, the Company issued $1 billion principal amount of notes due May 2034 (the “2024 USD Notes”). The net proceeds from the issuance of the 2024 USD Notes, after deducting the original issue discount, underwriting discount and offering expenses, were $983 million. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions, except per share data) Dividends declared per share $ 0.66 $ 0.57 $ 1.32 $ 1.14 Total dividends declared $ 611 $ 538 $ 1,226 $ 1,079 Common Stock Activity The following table presents the changes in the Company’s outstanding Class A and Class B common stock: Three Months Ended June 30, 2024 2023 Outstanding Shares Outstanding Shares Class A Class B Class A Class B (in millions) Balance at beginning of period 924.2 7.1 941.4 7.5 Purchases of treasury stock (5.8) — (6.5) — Share-based payments 0.1 — 0.9 — Conversion of Class B to Class A common stock — — 0.1 (0.1) Balance at end of period 918.5 7.1 935.9 7.4 Six Months Ended June 30, 2024 2023 Outstanding Shares Outstanding Shares Class A Class B Class A Class B (in millions) Balance at beginning of period 927.3 7.2 948.4 7.6 Purchases of treasury stock (10.2) — (14.4) — Share-based payments 1.3 — 1.7 — Conversion of Class B to Class A common stock 0.1 (0.1) 0.2 (0.2) Balance at end of period 918.5 7.1 935.9 7.4 In December 2023 and 2022, the Company’s Board of Directors approved share repurchase programs of its Class A common stock authorizing the Company to repurchase up to $11.0 billion and $9.0 billion, respectively. The following table summarizes the Company’s share repurchases of its Class A common stock: Six Months Ended June 30, 2024 2023 (in millions, except per share data) Dollar-value of shares repurchased 1 $ 4,631 $ 5,294 Shares repurchased 10.2 14.4 Average price paid per share $ 454.92 $ 367.00 1 The dollar-value of shares repurchased does not include a 1% excise tax. The incremental tax is recorded in treasury stock on the consolidated balance sheet. As of June 30, 2024, the remaining authorization under the share repurchase programs approved by the Company’s Board of Directors was $9.5 billion. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024 and 2023 were as follows: December 31, 2023 Increase / (Decrease) Reclassifications June 30, 2024 (in millions) Foreign currency translation adjustments 1 $ (1,119) $ (187) $ — $ (1,306) Translation adjustments on net investment hedges 2 181 38 — 219 Cash flow hedges Foreign exchange contracts 3 (17) 105 (66) 22 Interest rate contracts (118) — 2 (116) Defined benefit pension and other postretirement plans (25) 2 — (23) Investment securities available-for-sale (1) — — (1) Accumulated other comprehensive income (loss) $ (1,099) $ (42) $ (64) $ (1,205) December 31, 2022 Increase / (Decrease) Reclassifications June 30, 2023 (in millions) Foreign currency translation adjustments 1 $ (1,414) $ 133 $ — $ (1,281) Translation adjustments on net investment hedges 2 309 (66) — 243 Cash flow hedges Foreign exchange contracts 3 (8) (18) 11 (15) Interest rate contracts (123) — 2 (121) Defined benefit pension and other postretirement plans (11) — — (11) Investment securities available-for-sale (6) 2 — (4) Accumulated other comprehensive income (loss) $ (1,253) $ 51 $ 13 $ (1,189) 1 During the six months ended June 30, 2024, the increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily b y the depreciation of the euro and Brazilian real against the U.S. dollar. Duri ng the six months ended June 30, 2023, the decrease in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the appreciation of the British pound and euro against the U.S. dollar. 2 Du ring the six months ended June 30, 2024, the 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. During the six months ended June 30, 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. See Note 16 (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 16 (Derivative and Hedging Instruments) for additional information. |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |
Share-Based Payments | Share-Based Payments During the six months ended June 30, 2024, 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 2024 Weighted-Average (in millions) (per option/unit) Non-qualified stock options 0.2 $ 165 Restricted stock units 0.9 $ 472 Performance stock units 0.2 $ 512 The Company uses the Black-Scholes option pricing model to determine the grant-date fair value of stock options and calculates the expected life and the expected volatility based on historical Mastercard information. The expected life of stock options granted in 2024 was estimated to be six years, while the expected volatility was determined to be 28.7%. 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. RSUs generally vest ratably over three years. The Company uses 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 | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rates were 17.3% and 23.2% for the three months ended June 30, 2024 and 2023, respectively. The effective income tax rates were 16.4% and 20.6% for the six months ended June 30, 2024 and 2023, respectively. The lower effective income tax rates for the three months and six months ended June 30, 2024, versus the comparable periods in 2023, were primarily due to a $212 million discrete tax expense recognized in the second quarter of 2023 to establish a valuation allowance associated with the U.S. foreign tax credit carryforward deferred tax asset resulting from foreign tax legislation enacted in Brazil in 2023. A change in the Company’s geographic mix of earnings also contributed to the lower effective income tax rates for the current periods. 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 2014. |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 6 Months Ended |
Jun. 30, 2024 | |
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, it is not possible to determine the probability of loss or estimate damages, and therefore, Mastercard has not established liabilities for any of these proceedings, except as discussed below. 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 proceedings involve 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 and financial condition. United States. In 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 “U.S. MDL Litigation Cases”). The plaintiffs filed a consolidated class action complaint seeking treble damages. In 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 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 U.S. MDL 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 2012, the parties entered into a definitive settlement agreement with respect to the U.S. MDL Litigation Cases (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 2013. Following an appeal by objectors and as a result of a reversal by the U.S. Court of Appeals for the Second Circuit, 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 2018, the parties to the Damages Class litigation entered into a class settlement agreement to resolve the Damages Class claims, with merchants representing slightly more than 25% of the Damages Class interchange volume choosing to opt out of the settlement. The Damages Class settlement agreement became final in August 2023. Since 2018, Mastercard has reached settlements or agreements in principle to settle with over 250 opt-out merchants. These opt-out merchant settlements, along with the Damages Class settlement, represent over 90% of Mastercard’s U.S. interchange volume. During the first quarter of 2024, the district court denied the defendants’ motions for summary judgment with respect to the ongoing individual opt-out merchant cases and has issued orders recommending that these cases be sent back to their original jurisdictions for potential trials. In 2021, the district court granted the Rules Relief Class’s motion for class certification. In March 2024, the parties to the Rules Relief Class litigation entered into a settlement agreement to resolve the Rules Relief Class claims. The court held a preliminary settlement approval hearing in June 2024, and subsequently issued a decision denying approval of the settlement. The defendants and the Rules Relief Class lawyers are in discussions regarding next steps. As of June 30, 2024 and December 31, 2023, Mastercard had accrued a liability of $432 million and $596 million, respectively, for the U.S. MDL Litigation Cases. The liability as of June 30, 2024 represents Mastercard’s best estimate of its probable liabilities in these matters and 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 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 £0.5 billion (approximately $0.6 billion as of June 30, 2024) 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. A hearing involving multiple merchant cases was completed in March 2024 concerning certain liability issues with respect to merchant claims for damages related to post-Interchange Fee Regulation consumer interchange fees as well as commercial and inter-regional interchange fees. In a separate matter, 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 in both the U.K. and the European Union. In December 2023, the plaintiffs filed a revised collective action application claiming damages against Mastercard in excess of £1 billion (approximately $1.3 billion as of June 30, 2024). In June 2024, the court granted the plaintiffs’ collective action application. Mastercard has requested permission to appeal this ruling. In 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 £10 billion (approximately $13 billion as of June 30, 2024). In 2021, the trial court issued a decision in which it granted class certification to the plaintiffs but narrowed the scope of the class. Since January 2023, the trial court has held hearings on various issues, including whether any causal connection existed between the levels of Mastercard’s intra-EEA interchange fees and U.K. domestic interchange fees and regarding Mastercard’s request to narrow the number of years of damages sought by the plaintiffs on statute of limitations grounds. In February 2024, the trial court ruled in Mastercard’s favor, finding no causal connection between the levels of Mastercard’s intra-EEA interchange fees and U.K. domestic interchange fees. The plaintiffs’ request for permission to appeal this ruling was denied. In June 2024, the trial court ruled in Mastercard’s favor with respect to its request to dismiss five years of the plaintiffs’ damages claims on statute of limitations grounds. The plaintiffs’ request for permission to appeal this ruling was granted. 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 June 30, 2024) 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. Australia. In 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 March 2025. ATM Non-Discrimination Rule Surcharge Complaints In 2011, a trade association of independent 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 Class 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 different putative classes of users of ATM services. The claims in these actions largely mirror the allegations made in the ATM Operators Class Complaint, although these complaints seek damages on behalf of consumers of ATM services who pay allegedly inflated ATM fees at both bank (“Bank ATM Consumer Class Complaint”) and non-bank (“Non-bank ATM Consumer Class Complaint”) 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 2019, the plaintiffs in all three class complaints filed with the district court their motions for class certification. In July 2023, the D.C. Circuit Court affirmed the district court’s previous order granting class certification. The U.S. Supreme Court declined to hear the defendants’ appeal of the certification decision. In May 2024, Mastercard executed a settlement agreement with the class lawyers representing the Bank ATM Consumer Class. The settlement is subject to court approval. During the first quarter of 2024, Mastercard recorded an accrual of $93 million in connection with this matter. The litigation with the ATM Operators Class and Non-bank ATM Consumer Class is ongoing. The plaintiffs in these two remaining class complaints, in aggregate, allege over $1 billion in damages against all of the defendants. U.S. Liability Shift Litigation In 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. The district court denied the Network Defendants’ motion to dismiss the complaint, but granted such a motion for EMVCo and the Bank Defendants. In 2017, the district court transferred the case to New York so that discovery could be coordinated with the U.S. MDL Litigation Cases described above. In 2020, the district court issued an order granting the plaintiffs’ request for class certification. 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 and all briefs on summary judgment have been submitted. 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 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 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. Briefing on plaintiffs’ motion to amend the class definition and Mastercard’s cross-motion to decertify the stand alone fax recipient class was completed in April 2023 and the parties await the court’s decision. 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 payment network 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. The duration of the settlement exposure is short-term and generally limited to a few days. Gross settlement exposure is estimated using the average daily payment volume during the three months prior to period end multiplied by the estimated number of days of exposure. The Company has global risk management policies and procedures, which include risk standards, to provide a framework for managing the Company’s settlement risk and exposure. In the event of 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 do not meet the Company’s risk standards to enter into risk mitigation arrangements, including cash collateral and/or 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, the Company periodically 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: June 30, December 31, (in millions) Gross settlement exposure $ 76,683 $ 75,023 Risk mitigation arrangements applied to settlement exposure (12,855) (12,167) Net settlement exposure $ 63,828 $ 62,856 |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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. The Company does not enter into derivatives for speculative purposes. 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. The terms of these contracts are for generally less than 18 months. In April 2024, the Company entered into foreign exchange derivative contracts to hedge its exposure to variability in cash flows related to foreign denominated assets. Gains and losses resulting from changes in fair value of these contracts are deferred in accumulated other comprehensive income (loss) and reclassified to the consolidated statement of operations when the hedged transactions impact earnings. Forward points are excluded from the effectiveness assessment and are amortized to general and administrative expenses on the consolidated statement of operations over the hedge period. The maximum term of these contracts was for approximately 7 years. 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 and 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 impacts to interest expense for the three and six months ended June 30, 2024 and 2023 were 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 amortized to general and administrative expenses on the consolidated statement of operations over the hedge period. The amounts recognized in earnings related to forward points for the three and six months ended June 30, 2024 and 2023 were not material. As of June 30, 2024 and December 31, 2023, the Company had €1.7 billion and €1.6 billion euro-denominated debt outstanding designated as hedges of a portion of its net investment in its European operations. In December 2023, the Company de-designated €109 million of the euro-denominated debt as net investment hedges to effectively manage changes in its net investment exposures in foreign subsidiaries. The euro-denominated debt was subsequently re-designated as a net investment hedge effective April 2024. For the three and six months ended June 30, 2024 and 2023, the Company recorded pre-tax net foreign currency gains (losses) of $14 million and $58 million and $(4) million and $(39) million, respectively, in other comprehensive income (loss). As of June 30, 2024 and December 31, 2023, the Company had net foreign currency gains of $219 million and $181 million, after tax, respectively, 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: June 30, 2024 December 31, 2023 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 $ 4,061 $ 95 $ 6 $ 1,006 $ 2 $ 25 Interest rate contracts in a fair value hedge 2 1,000 — 83 1,000 — 79 Derivatives not designated as hedging instruments Foreign exchange contracts 1 2,184 18 7 5,424 34 79 Total derivative assets/liabilities $ 7,245 $ 113 $ 96 $ 7,430 $ 36 $ 183 1 Foreign exchange derivative assets and liabilities are included within prepaid expenses and other current assets, other assets, and other current liabilities 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) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings Three Months Ended June 30, 2024 2023 2024 2023 (in millions) (in millions) Derivative financial instruments in a cash flow hedge relationship: Foreign exchange contracts 1 $ 91 $ (14) Net revenue $ 3 $ (8) General and administrative 2 $ 66 $ — Interest rate contracts $ — $ — Interest expense $ (1) $ (1) Derivative financial instruments in a net investment hedge relationship: Foreign exchange contracts $ (12) $ (7) 1 Includes immaterial amounts excluded from the effectiveness assessment recognized in other comprehensive income (loss). 2 Includes immaterial amounts excluded from the effectiveness assessment recognized in earnings. Gain (Loss) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) Six Months Ended June 30, Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings Six Months Ended June 30, 2024 2023 2024 2023 (in millions) (in millions) Derivative financial instruments in a cash flow hedge relationship: Foreign exchange contracts 1 $ 113 $ (24) Net revenue $ — $ (14) General and administrative 2 $ 66 $ — Interest rate contracts $ — $ — Interest expense $ (3) $ (3) Derivative financial instruments in a net investment hedge relationship: Foreign exchange contracts $ (9) $ (46) 1 Includes immaterial amounts excluded from the effectiveness assessment recognized in other comprehensive income (loss). 2 Includes immaterial amounts excluded from the effectiveness assessment recognized in earnings. The Company estimates that the pre-tax amount of the net deferred loss on cash flow hedges recorded in accumulated other comprehensive income (loss) at June 30, 2024 that will be reclassified into the consolidated statement of operations within the next 12 months is not material. The amount of gain (loss) recognized on the consolidated statement of operations for non-designated derivative contracts is summarized below: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Derivatives not designated as hedging instruments: Foreign exchange contracts General and administrative $ (1) $ 10 $ 71 $ 25 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the three months ended June 30, 2024, certain of our officers and directors adopted or terminated trading arrangements for the sale of shares of our common stock as follows: Action Date Plans Number of Securities to be Sold Expiration Rule 10b5-1 1 Non-Rule 10b5-1 2 Sachin Mehra, Chief Financial Officer Adoption May 2, 2024 X - (i) 17,216 shares of Class A common stock underlying employee stock options and (ii) 7,663 shares of Class A common stock The earlier of (i) the date when all securities under plan are exercised and sold and (ii) February 28, 2025 Raja Rajamannar, Chief Marketing & Communications Officer Adoption June 14, 2024 X - (i) 7,794 shares of Class A common stock underlying employee stock options and (ii) 6,262 shares of Class A common stock The earlier of (i) the date when all securities under plan are exercised and sold and (ii) June 14, 2025 1 Intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). 2 Not intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Sachin Mehra [Member] | ||
Trading Arrangements, by Individual | ||
Name | Sachin Mehra | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 2, 2024 | |
Arrangement Duration | 302 days | |
Raja Rajamannar [Member] | ||
Trading Arrangements, by Individual | ||
Name | Raja Rajamannar | |
Title | Chief Marketing & Communications Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 14, 2024 | |
Arrangement Duration | 365 days | |
Class A Common Stock Underlying Employee Stock Options [Member] | Sachin Mehra [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 17,216 | 17,216 |
Class A Common Stock Underlying Employee Stock Options [Member] | Raja Rajamannar [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 7,794 | 7,794 |
Class A Common Stock [Member] | Sachin Mehra [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 7,663 | 7,663 |
Class A Common Stock [Member] | Raja Rajamannar [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 6,262 | 6,262 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2024 | |
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 payments 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 June 30, 2024 and December 31, 2023, there were no significant VIEs that required consolidation and the investment s were not considered material to the consolidated financial statements. The Company consolidates acquisitions as of the date the Company has obtained a controlling financial interest. Intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the 2024 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, 2023 was derived from the audited consolidated financial statements as of December 31, 2023. The consolidated financial statements for the three and six months ended June 30, 2024 and 2023 and as of June 30, 2024 are unaudited, and in the opinion of management, include all normal recurring adjustments that are necessary to present fairly the results for interim periods. The results of operations for the three and six months ended June 30, 2024 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, 2023 for additional disclosures, including a summary of the Company’s significant accounting policies. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Net revenue by category: Payment network $ 4,375 $ 4,073 $ 8,295 $ 7,723 Value-added services and solutions 2,586 2,196 5,014 4,294 Net revenue $ 6,961 $ 6,269 $ 13,309 $ 12,017 Net revenue by geographic region: Americas 1 $ 3,164 $ 2,814 $ 5,937 $ 5,351 Asia Pacific, Europe, Middle East and Africa 3,797 3,455 7,372 6,666 Net revenue $ 6,961 $ 6,269 $ 13,309 $ 12,017 1 Americas includes the United States, Canada and Latin America. Prior period amounts have been reclassified to conform to the new presentation. June 30, December 31, (in millions) Receivables from contracts with customers Accounts receivable $ 3,991 $ 3,851 Contract assets Prepaid expenses and other current assets 133 133 Other assets 434 387 Deferred revenue 1 Other current liabilities 711 459 Other liabilities 333 318 1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions, except per share data) Numerator Net income $ 3,258 $ 2,845 $ 6,269 $ 5,206 Denominator Basic weighted-average shares outstanding 929 946 931 949 Dilutive stock options and stock units 2 2 2 3 Diluted weighted-average shares outstanding 1 930 949 933 952 Earnings per Share Basic $ 3.51 $ 3.01 $ 6.74 $ 5.48 Diluted $ 3.50 $ 3.00 $ 6.72 $ 5.47 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) | 6 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | The following table provides the components 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. June 30, December 31, (in millions) Cash and cash equivalents $ 6,996 $ 8,588 Restricted cash and restricted cash equivalents Restricted security deposits held for customers 1,772 1,845 Prepaid expenses and other current assets 34 32 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 8,802 $ 10,465 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments On the Consolidated Balance Sheet | Investments on the consolidated balance sheet consisted of the following: June 30, December 31, (in millions) Available-for-sale securities $ 290 $ 286 Held-to-maturity securities 1 72 306 Total investments $ 362 $ 592 1 Held-to-maturity securities represent investments in time deposits that mature within one year. 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: June 30, 2024 December 31, 2023 Amortized Gross Gross Fair Amortized Gross Gross Fair (in millions) Government and agency securities $ 87 $ — $ — $ 87 $ 86 $ — $ — $ 86 Corporate securities 203 — — 203 200 1 (1) 200 Total $ 290 $ — $ — $ 290 $ 286 $ 1 $ (1) $ 286 |
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 June 30, 2024 was as follows: Amortized Cost Fair Value (in millions) Due within 1 year $ 153 $ 153 Due after 1 year through 5 years 137 137 Total $ 290 $ 290 |
Equity Investments | The following table is a summary of the activity related to the Company’s equity investments: Balance at December 31, 2023 Purchases Sales Changes in Fair Value 1 Other 2 Balance at June 30, 2024 (in millions) Marketable securities $ 506 $ — $ (23) $ (9) $ 24 $ 498 Nonmarketable securities 1,223 18 — 2 (32) 1,211 Total equity investments $ 1,729 $ 18 $ (23) $ (7) $ (8) $ 1,709 1 Recorded in gains (losses) on equity investments, net on the consolidated statement of operations. 2 Includes reclasses between Marketable and Nonmarketable securities as well as translational impact of currency. |
Nonmarketable securities | The following table sets forth the components of the Company’s Nonmarketable securities: June 30, December 31, (in millions) Measurement alternative $ 988 $ 1,008 Equity method 223 215 Total Nonmarketable securities $ 1,211 $ 1,223 |
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 June 30, 2024: (in millions) Initial cost basis $ 534 Cumulative adjustments 1 : Upward adjustments 636 Downward adjustments (including impairment) (182) Carrying amount, end of period $ 988 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: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Measurement alternative investments: Upward adjustments $ — $ 6 $ 7 $ 6 Downward adjustments (including impairment) (1) (2) (4) (135) Marketable securities: Unrealized gains (losses), net (21) 121 (14) 55 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 December 31, 2023 Quoted Prices Significant Significant Total Quoted Prices Significant Significant Total (in millions) Assets Investment securities available-for-sale 1 : Government and agency securities $ 39 $ 48 $ — $ 87 $ 33 $ 53 $ — $ 86 Corporate securities — 203 — 203 — 200 — 200 Derivative instruments 2 : Foreign exchange contracts — 113 — 113 — 36 — 36 Marketable securities 3 : Equity securities 498 — — 498 506 — — 506 Deferred compensation plan 4 : Deferred compensation assets 104 — — 104 93 — — 93 Liabilities Derivative instruments 2 : Foreign exchange contracts $ — $ 13 $ — $ 13 $ — $ 104 $ — $ 104 Interest rate contracts — 83 — 83 — 79 — 79 Deferred compensation plan 5 : Deferred compensation liabilities 102 — — 102 91 — — 91 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 measured at fair value are based on observable inputs such as broker quotes for similar derivative instruments. See Note 16 (Derivative and Hedging Instruments) for further details. 3 The Company’s Marketable securities are publicly held and 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 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: June 30, December 31, (in millions) Customer incentives $ 1,662 $ 1,570 Other 1,279 1,073 Total prepaid expenses and other current assets $ 2,941 $ 2,643 |
Schedule of Other Assets, Noncurrent | Other assets consisted of the following: June 30, December 31, (in millions) Customer incentives $ 5,959 $ 5,170 Equity investments 1,709 1,729 Income taxes receivable 846 783 Other 756 643 Total other assets $ 9,270 $ 8,325 |
Accrued Expenses and Accrued _2
Accrued Expenses and Accrued Litigation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: June 30, December 31, (in millions) Customer incentives $ 6,289 $ 6,219 Personnel costs 823 1,258 Income and other taxes 313 486 Other 582 554 Total accrued expenses $ 8,007 $ 8,517 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Debt consisted of the following: June 30, December 31, Effective (in millions) Senior Notes 2024 USD Notes 4.875 % Senior Notes due May 2034 $ 1,000 $ — 5.047 % 2023 USD Notes 4.875 % Senior Notes due March 2028 750 750 5.003 % 4.850 % Senior Notes due March 2033 750 750 4.923 % 2022 EUR Notes 1 1.000 % Senior Notes due February 2029 803 830 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 856 885 2.189 % 2.500 % Senior Notes due December 2030 160 166 2.562 % 2014 USD Notes 3.375 % Senior Notes due April 2024 — 1,000 3.484 % Other Debt 2023 INR Term Loan 3 9.430 % Term Loan due July 2024 337 338 9.780 % 15,806 15,869 Less: Unamortized discount and debt issuance costs (118) (109) Less: Cumulative hedge accounting fair value adjustments 4 (83) (79) Total debt outstanding 15,605 15,681 Less: Short-term debt 5 (1,086) (1,337) Long-term debt $ 14,519 $ 14,344 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 INR28.1 billion Indian rupee-denominated loan issued in July 2023. 4 The Company has an interest rate swap that is accounted for as a fair value hedge. See Note 16 (Derivative and Hedging Instruments) for additional information. 5 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions, except per share data) Dividends declared per share $ 0.66 $ 0.57 $ 1.32 $ 1.14 Total dividends declared $ 611 $ 538 $ 1,226 $ 1,079 |
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 June 30, 2024 2023 Outstanding Shares Outstanding Shares Class A Class B Class A Class B (in millions) Balance at beginning of period 924.2 7.1 941.4 7.5 Purchases of treasury stock (5.8) — (6.5) — Share-based payments 0.1 — 0.9 — Conversion of Class B to Class A common stock — — 0.1 (0.1) Balance at end of period 918.5 7.1 935.9 7.4 Six Months Ended June 30, 2024 2023 Outstanding Shares Outstanding Shares Class A Class B Class A Class B (in millions) Balance at beginning of period 927.3 7.2 948.4 7.6 Purchases of treasury stock (10.2) — (14.4) — Share-based payments 1.3 — 1.7 — Conversion of Class B to Class A common stock 0.1 (0.1) 0.2 (0.2) Balance at end of period 918.5 7.1 935.9 7.4 |
Schedule of share repurchases and authorizations | The following table summarizes the Company’s share repurchases of its Class A common stock: Six Months Ended June 30, 2024 2023 (in millions, except per share data) Dollar-value of shares repurchased 1 $ 4,631 $ 5,294 Shares repurchased 10.2 14.4 Average price paid per share $ 454.92 $ 367.00 1 The dollar-value of shares repurchased does not include a 1% excise tax. The incremental tax is recorded in treasury stock on the consolidated balance sheet. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024 and 2023 were as follows: December 31, 2023 Increase / (Decrease) Reclassifications June 30, 2024 (in millions) Foreign currency translation adjustments 1 $ (1,119) $ (187) $ — $ (1,306) Translation adjustments on net investment hedges 2 181 38 — 219 Cash flow hedges Foreign exchange contracts 3 (17) 105 (66) 22 Interest rate contracts (118) — 2 (116) Defined benefit pension and other postretirement plans (25) 2 — (23) Investment securities available-for-sale (1) — — (1) Accumulated other comprehensive income (loss) $ (1,099) $ (42) $ (64) $ (1,205) December 31, 2022 Increase / (Decrease) Reclassifications June 30, 2023 (in millions) Foreign currency translation adjustments 1 $ (1,414) $ 133 $ — $ (1,281) Translation adjustments on net investment hedges 2 309 (66) — 243 Cash flow hedges Foreign exchange contracts 3 (8) (18) 11 (15) Interest rate contracts (123) — 2 (121) Defined benefit pension and other postretirement plans (11) — — (11) Investment securities available-for-sale (6) 2 — (4) Accumulated other comprehensive income (loss) $ (1,253) $ 51 $ 13 $ (1,189) 1 During the six months ended June 30, 2024, the increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily b y the depreciation of the euro and Brazilian real against the U.S. dollar. Duri ng the six months ended June 30, 2023, the decrease in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the appreciation of the British pound and euro against the U.S. dollar. 2 Du ring the six months ended June 30, 2024, the 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. During the six months ended June 30, 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. See Note 16 (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 16 (Derivative and Hedging Instruments) for additional information. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024, 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 2024 Weighted-Average (in millions) (per option/unit) Non-qualified stock options 0.2 $ 165 Restricted stock units 0.9 $ 472 Performance stock units 0.2 $ 512 |
Settlement and Other Risk Man_2
Settlement and Other Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, December 31, (in millions) Gross settlement exposure $ 76,683 $ 75,023 Risk mitigation arrangements applied to settlement exposure (12,855) (12,167) Net settlement exposure $ 63,828 $ 62,856 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 December 31, 2023 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 $ 4,061 $ 95 $ 6 $ 1,006 $ 2 $ 25 Interest rate contracts in a fair value hedge 2 1,000 — 83 1,000 — 79 Derivatives not designated as hedging instruments Foreign exchange contracts 1 2,184 18 7 5,424 34 79 Total derivative assets/liabilities $ 7,245 $ 113 $ 96 $ 7,430 $ 36 $ 183 1 Foreign exchange derivative assets and liabilities are included within prepaid expenses and other current assets, other assets, and other current liabilities 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) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings Three Months Ended June 30, 2024 2023 2024 2023 (in millions) (in millions) Derivative financial instruments in a cash flow hedge relationship: Foreign exchange contracts 1 $ 91 $ (14) Net revenue $ 3 $ (8) General and administrative 2 $ 66 $ — Interest rate contracts $ — $ — Interest expense $ (1) $ (1) Derivative financial instruments in a net investment hedge relationship: Foreign exchange contracts $ (12) $ (7) 1 Includes immaterial amounts excluded from the effectiveness assessment recognized in other comprehensive income (loss). 2 Includes immaterial amounts excluded from the effectiveness assessment recognized in earnings. Gain (Loss) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) Six Months Ended June 30, Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings Six Months Ended June 30, 2024 2023 2024 2023 (in millions) (in millions) Derivative financial instruments in a cash flow hedge relationship: Foreign exchange contracts 1 $ 113 $ (24) Net revenue $ — $ (14) General and administrative 2 $ 66 $ — Interest rate contracts $ — $ — Interest expense $ (3) $ (3) Derivative financial instruments in a net investment hedge relationship: Foreign exchange contracts $ (9) $ (46) 1 Includes immaterial amounts excluded from the effectiveness assessment recognized in other comprehensive income (loss). 2 Includes immaterial amounts excluded from the effectiveness assessment recognized in earnings. |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Derivatives not designated as hedging instruments: Foreign exchange contracts General and administrative $ (1) $ 10 $ 71 $ 25 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 6,961 | $ 6,269 | $ 13,309 | $ 12,017 |
Americas 1 | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | 3,164 | 2,814 | 5,937 | 5,351 |
Asia Pacific, Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | 3,797 | 3,455 | 7,372 | 6,666 |
Payment network | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | 4,375 | 4,073 | 8,295 | 7,723 |
Value-added services and solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 2,586 | $ 2,196 | $ 5,014 | $ 4,294 |
Revenue - Location on Balance S
Revenue - Location on Balance Sheet of Amounts Recognized From Contracts With Customers (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables from contracts with customers | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 3,991 | $ 3,851 |
Prepaid Expenses and Other Current Assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 133 | 133 |
Other Assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 434 | 387 |
Other current liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 711 | 459 |
Other Liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 333 | $ 318 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized from performance obligations | $ 569 | $ 1,079 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator | ||||
Net income | $ 3,258 | $ 2,845 | $ 6,269 | $ 5,206 |
Denominator | ||||
Basic weighted-average shares outstanding (in shares) | 929 | 946 | 931 | 949 |
Diluted weighted-average shares outstanding (in shares) | 2 | 2 | 2 | 3 |
Diluted weighted-average shares outstanding (in shares) | 930 | 949 | 933 | 952 |
Earnings per Share | ||||
Basic (in dollars per share) | $ 3.51 | $ 3.01 | $ 6.74 | $ 5.48 |
Diluted (in dollars per share) | $ 3.50 | $ 3 | $ 6.72 | $ 5.47 |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 6,996 | $ 8,588 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 8,802 | 10,465 | $ 8,521 | $ 9,196 |
Restricted Cash, Security Deposits | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | 1,772 | 1,845 | ||
Restricted Cash, Prepaid Expense and Other Current Assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and restricted cash equivalents | $ 34 | $ 32 |
Investments - Investments (Deta
Investments - Investments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | $ 290 | $ 286 |
Held-to-maturity securities | 72 | 306 |
Total investments | $ 362 | $ 592 |
Investments - Available-for-Sal
Investments - Available-for-Sale Investment Securities, Unrealized Gains and Losses (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 290 | $ 286 |
Gross Unrealized Gain | 0 | 1 |
Gross Unrealized Loss | 0 | (1) |
Fair Value | 290 | 286 |
Government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 87 | 86 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 87 | 86 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 203 | 200 |
Gross Unrealized Gain | 0 | 1 |
Gross Unrealized Loss | 0 | (1) |
Fair Value | $ 203 | $ 200 |
Investments - Maturity Distribu
Investments - Maturity Distribution Based on Contractual Terms of Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Available-For-Sale Amortized Cost | ||
Due within 1 year | $ 153 | |
Due after 1 year through 5 years | 137 | |
Amortized Cost | 290 | $ 286 |
Available-For-Sale Fair Value | ||
Due within 1 year | 153 | |
Due after 1 year through 5 years | 137 | |
Total | $ 290 | $ 286 |
Investments - Equity Investment
Investments - Equity Investments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) In Equity Investments [Roll Forward] | ||
Marketable securities, beginning balance | $ 506 | |
Marketable securities, Purchases | 0 | |
Marketable securities, Sales | (23) | |
Marketable securities, Changes in Fair Value | (9) | |
Marketable Securities, Other | 24 | |
Marketable securities, ending balance | 498 | |
Nonmarketable securities, beginning balance | 1,223 | |
Nonmarketable Securities, Purchases | 18 | |
Nonmarketable Securities, Sales | 0 | |
Nonmarketable Securities, Changes in Fair Value | 2 | |
Nonmarketable Securities, Other | (32) | |
Nonmarketable securities, ending balance | 1,211 | |
Total equity investments, beginning balance | 1,729 | |
Total equity investments, Purchases | 18 | |
Total equity investments, Sales | (23) | $ (44) |
Total equity investments, Changes in Fair Value | (7) | |
Total equity investments, Other | (8) | |
Total equity investments, ending balance | $ 1,709 |
Investments - Components of Non
Investments - Components of Nonmarketable securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Marketable Securities [Abstract] | ||
Measurement alternative | $ 988 | $ 1,008 |
Equity method | 223 | 215 |
Total Nonmarketable securities | $ 1,211 | $ 1,223 |
Investments - Carrying Value of
Investments - Carrying Value of Measurement Alternative Investments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Alternative Investment, Initial Cost Basis | $ 534 | |
Alternative Investment, Upward Price Adjustment, Cumulative Amount | 636 | |
Alternative Investment, Downward Price Adjustment Including Impairment, Cumulative Amount | (182) | |
Measurement alternative | $ 988 | $ 1,008 |
Investments - Unrealized Gains
Investments - Unrealized Gains (Losses) Included in the Carrying Value of Measurement Alternative Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Alternative Investments, Upward Price Adjustment, Annual Amount | $ 0 | $ 6 | $ 7 | $ 6 |
Alternative Investment, Downward Price Adjustment Including Impairment, Annual Amount | (1) | (2) | (4) | (135) |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ (21) | $ 121 | $ (14) | $ 55 |
Fair Value Measurements - Distr
Fair Value Measurements - Distribution of Financial Instruments, Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Deferred compensation assets | $ 104 | $ 93 |
Foreign exchange derivative liabilities | 13 | 104 |
Deferred compensation liabilities | 102 | 91 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Deferred compensation assets | 104 | 93 |
Foreign exchange derivative liabilities | 0 | 0 |
Deferred compensation liabilities | 102 | 91 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Foreign exchange derivative liabilities | 13 | 104 |
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 | 87 | 86 |
Government and agency securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 39 | 33 |
Government and agency securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 48 | 53 |
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 | 203 | 200 |
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 | 203 | 200 |
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 | 498 | 506 |
Equity securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment securities available for sale | 498 | 506 |
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 | 113 | 36 |
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 | 113 | 36 |
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 | 83 | 79 |
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 | 83 | 79 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, long-term and short-term, combined amount | $ 15,605 | $ 15,681 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 14,100 | $ 14,700 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets - Schedule of Prepaid Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Prepaid Expense and Other Assets [Abstract] | ||
Customer incentives | $ 1,662 | $ 1,570 |
Other | 1,279 | 1,073 |
Total prepaid expenses and other current assets | $ 2,941 | $ 2,643 |
Prepaid Expenses and Other As_4
Prepaid Expenses and Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Prepaid Expense and Other Assets [Abstract] | ||
Customer incentives | $ 5,959 | $ 5,170 |
Equity investments | 1,709 | 1,729 |
Income taxes receivable | 846 | 783 |
Other | 756 | 643 |
Total other assets | $ 9,270 | $ 8,325 |
Accrued Expenses and Accrued _3
Accrued Expenses and Accrued Litigation - Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued Liabilities, Current [Abstract] | ||
Customer incentives | $ 6,289 | $ 6,219 |
Personnel costs | 823 | 1,258 |
Income and other taxes | 313 | 486 |
Other | 582 | 554 |
Total accrued expenses | $ 8,007 | $ 8,517 |
Accrued Expenses and Accrued _4
Accrued Expenses and Accrued Litigation - Accrued Litigation Expense (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued Liabilities, Current [Abstract] | ||
Long-term customer and merchant incentives | $ 2,786 | $ 2,777 |
Provision for litigation | $ 525 | $ 723 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) € in Millions, $ in Millions, ₨ in Billions | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | May 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jul. 31, 2023 INR (₨) | Feb. 28, 2022 EUR (€) | Dec. 31, 2021 | Dec. 31, 2015 EUR (€) |
Debt Instrument [Line Items] | ||||||||
Long-term debt and short-term debt, gross | $ 15,806 | $ 15,869 | ||||||
Less: Unamortized discount and debt issuance costs | (118) | (109) | ||||||
Less: Cumulative hedge accounting fair value adjustment | (83) | (79) | ||||||
Total debt outstanding | 15,605 | 15,681 | ||||||
Less: short-term debt | (1,086) | (1,337) | ||||||
Long-term debt | $ 14,519 | 14,344 | ||||||
2023 INR Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 9.43% | 9.43% | ||||||
Effective interest rate | 9.78% | 9.78% | ||||||
Short-term debt | $ 337 | 338 | ₨ 28.1 | |||||
Senior Notes | May 2034 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.875% | 4.875% | ||||||
Long-term debt, gross | $ 1,000 | $ 1,000 | 0 | |||||
Effective interest rate | 5.047% | 5.047% | ||||||
Senior Notes | March 2028 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.875% | 4.875% | ||||||
Long-term debt, gross | $ 750 | 750 | ||||||
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 | 750 | ||||||
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 | $ 803 | 830 | € 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 | $ 856 | 885 | ||||||
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 | $ 160 | 166 | ||||||
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 | $ 0 | $ 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) - Senior Notes - USD ($) $ in Millions | 1 Months Ended | ||
May 31, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Notes issued 2024, USD | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of debt | $ 983 | ||
May 2034 Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,000 | $ 1,000 | $ 0 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Dividends Payable [Line Items] | ||||
Total dividends declared | $ 611 | $ 538 | $ 1,226 | $ 1,079 |
Common Stock | ||||
Dividends Payable [Line Items] | ||||
Dividends declared per share | $ 0.66 | $ 0.57 | $ 1.32 | $ 1.14 |
Retained Earnings | ||||
Dividends Payable [Line Items] | ||||
Total dividends declared | $ 611 | $ 538 | $ 1,226 | $ 1,079 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Shares Activity (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Purchases of treasury stock | (10.2) | (14.4) | ||
Common Stock | Class A | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 924.2 | 941.4 | 927.3 | 948.4 |
Purchases of treasury stock | (5.8) | (6.5) | (10.2) | (14.4) |
Share-based payments | 0.1 | 0.9 | 1.3 | 1.7 |
Conversion of Class B to Class A common stock | 0 | 0.1 | 0.1 | 0.2 |
Balance at end of period | 918.5 | 935.9 | 918.5 | 935.9 |
Common Stock | Class B | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 7.1 | 7.5 | 7.2 | 7.6 |
Purchases of treasury stock | 0 | 0 | 0 | 0 |
Share-based payments | 0 | 0 | 0 | 0 |
Conversion of Class B to Class A common stock | 0 | (0.1) | (0.1) | (0.2) |
Balance at end of period | 7.1 | 7.4 | 7.1 | 7.4 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Billions | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Equity, Class of Treasury Stock [Line Items] | |||
Remaining authorization | $ 9.5 | ||
December 2020 Share Repurchase Plan | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amounts under stock repurchase program | $ 9 | ||
November 2021 Share Repurchase Plan | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amounts under stock repurchase program | $ 11 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Repurchases and Authorizations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Equity [Abstract] | ||
Dollar-value of shares repurchased 1 | $ 4,631 | $ 5,294 |
Shares repurchased | 10.2 | 14.4 |
Average price paid per share | $ 454.92 | $ 367 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 6,975 | $ 6,356 |
Balance at end of period | 7,460 | 5,557 |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,119) | (1,414) |
Increase / (Decrease) | (187) | 133 |
Reclassifications | 0 | 0 |
Balance at end of period | (1,306) | (1,281) |
Translation adjustments on net investment hedge | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 181 | 309 |
Increase / (Decrease) | 38 | (66) |
Reclassifications | 0 | 0 |
Balance at end of period | 219 | 243 |
Defined benefit pension and other postretirement plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (25) | (11) |
Increase / (Decrease) | 2 | 0 |
Reclassifications | 0 | 0 |
Balance at end of period | (23) | (11) |
Investment securities available-for-sale | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1) | (6) |
Increase / (Decrease) | 0 | 2 |
Reclassifications | 0 | 0 |
Balance at end of period | (1) | (4) |
Accumulated other comprehensive income (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,099) | (1,253) |
Increase / (Decrease) | (42) | 51 |
Reclassifications | (64) | 13 |
Balance at end of period | (1,205) | (1,189) |
Foreign exchange contracts | Cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (17) | (8) |
Increase / (Decrease) | 105 | (18) |
Reclassifications | (66) | 11 |
Balance at end of period | 22 | (15) |
Interest rate contracts | Cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (118) | (123) |
Increase / (Decrease) | 0 | 0 |
Reclassifications | 2 | 2 |
Balance at end of period | $ (116) | $ (121) |
Share-Based Payments - Types of
Share-Based Payments - Types of Equity Awards (Details) shares in Millions | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-Based Payments | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0.2 |
Fair value of stock options, per share, estimated using a Black-Scholes option pricing model | $ / shares | $ 165 |
Restricted stock units | |
Share-Based Payments | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 0.9 |
Share-Based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted-Average Grant-Date Fair Value | $ / shares | $ 472 |
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 | $ 512 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 | |
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 | 28.70% |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (as a percent) | 17.30% | 23.20% | 16.40% | 20.60% |
Tax expense, valuation allowance, US foreign tax credit | $ 212 | $ 212 |
Legal and Regulatory Proceedi_2
Legal and Regulatory Proceedings (Details) £ in Millions, € in Billions | 1 Months Ended | 6 Months Ended | 12 Months Ended | 66 Months Ended | ||||||||
Jun. 30, 2024 USD ($) | Dec. 31, 2023 GBP (£) | Jun. 30, 2024 USD ($) defendant fax | Jun. 30, 2024 GBP (£) defendant fax | Jun. 30, 2024 EUR (€) defendant fax | Dec. 31, 2011 plaintiff | Jun. 30, 2024 USD ($) merchant | Jun. 30, 2024 GBP (£) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 | |
Legal And Regulatory | ||||||||||||
Accrued litigation | $ 525,000,000 | $ 525,000,000 | $ 525,000,000 | $ 723,000,000 | ||||||||
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 | $ 432,000,000 | $ 432,000,000 | $ 432,000,000 | $ 596,000,000 | ||||||||
Maximum | U.S. Merchant Litigation - Class Litigation | ||||||||||||
Legal And Regulatory | ||||||||||||
Percentage of merchant opt outs to terminate agreement | 25% | |||||||||||
Minimum | U.S. Merchant Litigation - Class Litigation | ||||||||||||
Legal And Regulatory | ||||||||||||
Mastercard's U.S. interchange volume represented by opt-out merchant and damages class settlement, percentage | 90% | 90% | 90% | 90% | ||||||||
2022 Mastercard and Visa Proposed Collective Action Complaint in the U.K. | ||||||||||||
Legal And Regulatory | ||||||||||||
Amount of damages sought (that exceeds) | $ 1,300,000,000 | £ 1,000 | ||||||||||
Proposed U.K. Interchange Collective Action | ||||||||||||
Legal And Regulatory | ||||||||||||
Amount of damages sought (that exceeds) | $ 13,000,000,000 | £ 10,000 | ||||||||||
Claims dismissed, number of years | 5 years | 5 years | 5 years | |||||||||
ATM Operators Complaint | ||||||||||||
Legal And Regulatory | ||||||||||||
Amount of damages sought (that exceeds) | 1,000,000,000 | |||||||||||
Number of plaintiffs in case | plaintiff | 13 | |||||||||||
Number of pending claims | 3 | |||||||||||
Loss contingency accrual | $ 93,000,000 | |||||||||||
U.S. Liability Shift Litigation | ||||||||||||
Legal And Regulatory | ||||||||||||
Amount of damages sought (that exceeds) | $ 1,000,000,000 | |||||||||||
Number of defendants | defendant | 4 | 4 | 4 | |||||||||
Portugal Proposed Interchange Collective Action | ||||||||||||
Legal And Regulatory | ||||||||||||
Amount of damages sought (that exceeds) | $ 400,000,000 | € 0.4 | ||||||||||
Period of damages | 20 years | 20 years | 20 years | |||||||||
Unresolved | U.K. Merchant Lawsuit Settlement | ||||||||||||
Legal And Regulatory | ||||||||||||
Unresolved damages claims | $ 600,000,000 | $ 600,000,000 | $ 600,000,000 | £ 500 | ||||||||
Settled Litigation | Minimum | U.S. Merchant Litigation - Opt-Out | ||||||||||||
Legal And Regulatory | ||||||||||||
Number of claims settled | merchant | 250 |
Settlement and Other Risk Man_3
Settlement and Other Risk Management - Estimated Settlement Exposure (Details) - Guarantee Obligations - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Risks Inherent in Servicing Assets and Servicing Liabilities | ||
Gross settlement exposure | $ 76,683 | $ 75,023 |
Risk mitigation arrangements applied to settlement exposure | (12,855) | (12,167) |
Net settlement exposure | $ 63,828 | $ 62,856 |
Settlement and Other Risk Man_4
Settlement and Other Risk Management - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Settlement and Other Risk Management [Abstract] | ||
Travelers cheques outstanding, notional value | $ 334 | $ 340 |
Travelers cheques covered by collateral arrangements | $ 268 | $ 272 |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments - Narrative (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2023 EUR (€) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 EUR (€) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2021 USD ($) | |
Foreign Exchange Risk Management | |||||||||
Unrealized gain (loss) on net investment hedges, before tax | $ (12) | $ (7) | $ (9) | $ (46) | |||||
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% | 3.85% | |||||
Euro-Denominated Debt | |||||||||
Foreign Exchange Risk Management | |||||||||
Unrealized gain (loss) on net investment hedges, before tax | $ 14 | $ (4) | $ 58 | $ (39) | |||||
Cash Flow Hedging | |||||||||
Foreign Exchange Risk Management | |||||||||
Derivative, term of contract | 18 months | ||||||||
Cash Flow Hedging | Interest Rate Risk | |||||||||
Foreign Exchange Risk Management | |||||||||
Terms of the foreign currency forward contracts and foreign currency option contracts, less than | 7 years | ||||||||
Net Investment Hedging | |||||||||
Foreign Exchange Risk Management | |||||||||
Notional amount designated | € | € 1,700 | € 1,600 | |||||||
Net Investment Hedging | Euro-Denominated Debt | |||||||||
Foreign Exchange Risk Management | |||||||||
Derivative, de-designated, amount | € | € 109 | ||||||||
Net foreign currency transaction after tax loss in AOCI | $ 219 | $ 219 | $ 181 |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments - Fair Value of Company's Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Foreign Exchange Risk Management | ||
Notional | $ 7,245 | $ 7,430 |
Derivative assets | 113 | 36 |
Derivative liabilities | 96 | 183 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Prepaid Expenses, Other Current Assets, and Other Current Liabilities | ||
Foreign Exchange Risk Management | ||
Notional | 2,184 | 5,424 |
Derivative assets | 18 | 34 |
Derivative liabilities | 7 | 79 |
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 | 4,061 | 1,006 |
Derivative assets | 95 | 2 |
Derivative liabilities | 6 | 25 |
Fair Value Hedging | Derivatives designated as hedging instruments | Interest rate contracts | Other Current Liabilities and Other Liabilities | ||
Foreign Exchange Risk Management | ||
Notional | 1,000 | 1,000 |
Derivative assets | 0 | 0 |
Derivative liabilities | $ 83 | $ 79 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Foreign Exchange Risk Management | ||||
Unrealized gain (loss) on cash flow hedges, before tax | $ 91 | $ (14) | $ 113 | $ (24) |
Realized gain (loss) on cash flow hedges reclassified from AOCI | 68 | (9) | 63 | (17) |
Unrealized gain (loss) on net investment hedges, before tax | (12) | (7) | (9) | (46) |
Foreign exchange contracts | ||||
Foreign Exchange Risk Management | ||||
Unrealized gain (loss) on cash flow hedges, before tax | 91 | (14) | 113 | (24) |
Foreign exchange contracts | Net revenue | ||||
Foreign Exchange Risk Management | ||||
Realized gain (loss) on cash flow hedges reclassified from AOCI | 3 | (8) | 0 | (14) |
Foreign exchange contracts | General and administrative | ||||
Foreign Exchange Risk Management | ||||
Realized gain (loss) on cash flow hedges reclassified from AOCI | 66 | 0 | 66 | 0 |
Interest rate contracts | ||||
Foreign Exchange Risk Management | ||||
Unrealized gain (loss) on cash flow hedges, before tax | 0 | 0 | 0 | 0 |
Interest rate contracts | Interest expense | ||||
Foreign Exchange Risk Management | ||||
Realized gain (loss) on cash flow hedges reclassified from AOCI | $ (1) | $ (1) | $ (3) | $ (3) |
Derivative and Hedging Instru_6
Derivative and Hedging Instruments - Gain (Loss) Recognized in Income for the Contracts to Purchase and Sell Foreign Currency Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
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 | $ (1) | $ 10 | $ 71 | $ 25 |