Exhibit 99.1
MasterCard Incorporated Reports
Third-Quarter 2008 Financial Results
| | • | | Quarterly net income of $322 million, or $2.47 per diluted share, excluding a special item |
| | • | | Quarterly net loss of $194 million, or $1.49 per diluted share, including a special item |
| | • | | Quarterly net revenue growth of 23.6%, to $1.3 billion |
| | • | | Gross dollar volume up 12.3%; purchase volume up 13.3% |
Purchase, NY, November 3, 2008 – MasterCard Incorporated (NYSE:MA) today announced financial results for the third quarter of 2008. The company reported net income of $322 million, or $2.47 per diluted share, excluding a special item, and a net loss of $194 million, or $1.49 per diluted share, including the special item — a $515.5 million net after-tax charge related to an antitrust litigation settlement. The company’s total operating expenses, operating margin, other income, effective tax rate, net income and earnings per share, excluding the special item, are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.
Net revenue for the third quarter of 2008 was $1.3 billion, a 23.6% increase versus the same period in 2007. Currency fluctuations (driven by movement of the euro and the Brazilian real relative to the U.S. dollar) contributed 3.5 percentage points of the increase in net revenue for the quarter. The higher net revenue in the third quarter versus the same period in 2007 was fueled by:
| • | | Growth in MasterCard’s gross dollar volume, which increased 12.3%, on a local currency basis, to $662 billion; |
| • | | A 13.0% increase in the number of transactions processed, to 5.4 billion; |
| • | | An increase in cross-border volumes of 18.0%; and |
| • | | Pricing changes, which contributed approximately 5 percentage points of the net revenue growth. |
Worldwide purchase volume during the quarter rose 13.3% on a local currency basis, versus the third quarter of 2007, to $497 billion, driven by increased cardholder spending on a growing number of MasterCard cards. As of September 30, 2008, the company’s financial-institution customers had issued 970 million MasterCard cards, an increase of 10.3% over the cards issued at September 30, 2007.
“We are very pleased with our third-quarter performance and our ability to deliver strong financial results given the declining global economy,” said Robert W. Selander, MasterCard president and chief executive officer. “At a time of unprecedented economic challenges, consumers, businesses, and governments around the world have continued to migrate toward various forms of electronic payments.”
-more-
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Selander also noted: “As we are not immune from the long-term effects of the current economic environment, we have significantly accelerated the focus on our cost structure, while making sure we remain prudent in allocating resources to those investments that will enable us to drive growth worldwide, today and in the future. Our focus on our customers has never been more important as we work side by side with financial institutions to help them continue to develop the value of their payments businesses. Our account teams and MasterCard Advisors are helping our customers address risk management, reduce write-offs, improve segmentation efforts, and deliver more relevant messages to cardholders.
“Looking ahead, the long-term opportunity for MasterCard remains unchanged — to displace cash and checks, and continue to advance commerce globally, creating long-term value for our customers, merchants and shareholders alike,” said Selander.
The special item for the third quarter of 2008 represented:
| • | | An $827.5 million net pre-tax charge related to the antitrust litigation settlement between MasterCard and Discover Financial Services, which was announced on October 27, 2008. On an after-tax basis, this equates to approximately $515.5 million. |
Excluding the special item, total operating expenses increased 8.3%, to $790 million, during the third quarter of 2008 compared to the same period in 2007. Currency fluctuations contributed 2.4 percentage points of this increase. Growth in total operating expenses was driven by:
| • | | A 14.1% increase in general and administrative expenses, primarily resulting from higher personnel expenses due to new personnel and higher contractor costs, foreign currency transaction losses and increased litigation expenses. Currency fluctuations represented approximately 2.0 percentage points of the increase; and |
| • | | A 1.1% increase in advertising and marketing expenses versus the year-ago period, with approximately 3.0 percentage points of the increase primarily related to the impact of foreign currency fluctuations. |
Including the special item, total operating expenses for the third quarter of 2008 increased 121.7% versus the year-ago period, to $1.6 billion.
Excluding the special item, the operating margin was 41.0% for the third quarter of 2008, up 8.4 percentage points over the year-ago period. Including the special item, the operating margin was a negative 20.9% for the third quarter of 2008.
Total other expense was $14 million in the third quarter of 2008 versus other income of $129 million in the third quarter of 2007. The decrease was primarily due to gains realized in the third quarter of 2007 from the sale of a portion of the company’s investment in Redecard S.A. in Brazil. Interest expense versus the year-ago period increased $23 million primarily due to the interest accretion associated with the American Express settlement that occurred in the second quarter of 2008.
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Excluding the special item, MasterCard’s effective tax rate was 39.7% in the third quarter of 2008, versus 34.8% in the comparable period in 2007. The increase was primarily due to a tax charge for the remeasurement of deferred tax assets as a result of a change in the company’s estimated effective state tax rate. Including the special item, the effective tax rate was 34.1% benefit and 34.8% expense for the third quarters of 2008 and 2007, respectively. The decrease in the effective tax rate was primarily due to the tax benefit related to the charge for the Discover settlement, partially offset by the tax charge for the remeasurement of deferred tax assets.
Year-to-Date 2008 Results
For the nine months ended September 30, 2008, MasterCard reported net income of $1.0 billion, or $7.59 per diluted share, excluding the impact of special items, and a net loss of $493 million, or $3.79 per diluted share, including special items.
Special items for the nine months ended September 30, 2008, included:
| • | | $75 million pre-tax gain from the termination of a customer business agreement; |
| • | | A $1.65 billion pre-tax charge related to the antitrust litigation settlement between MasterCard and American Express; and |
| • | | An $827.5 million net pre-tax charge related to the Discover litigation settlement. |
Special items for the nine months ended September 30, 2007 included:
| • | | A $3.4 million reserve recorded for a litigation settlement; and |
| • | | $90 million in other income related to a settlement received under an agreement to discontinue the company’s sponsorship of the 2010 and 2014 World Cup soccer events. |
Net revenue for the nine months ended September 30, 2008, was $3.8 billion, a 25.8% increase versus the same period in 2007. In addition to growth in GDV, processed transactions and cross-border transaction volumes, this increase was driven by pricing changes, primarily cross-border transaction pricing implemented in January 2008, which contributed approximately 5 percentage points of the revenue growth in the year-to-date period. Currency fluctuation contributed approximately 4.6 percentage points of the increase in revenue in the year-to-date period.
Excluding special items for both periods, total operating expenses increased 11.3%, to $2.3 billion, for the nine-month period compared to the same period in 2007, primarily due to higher personnel expenses. Currency fluctuations contributed 3.3 percentage points of this increase. Including special items, operating expenses increased 131.4%, to $4.8 billion.
Excluding special items, the operating margin was 39.3% for the nine months ended September 30, 2008, up 7.9 percentage points over the year-ago period. Including special items, the operating margin was a negative 26.5% for the nine months ended September 30, 2008.
Total other income was $169 million for the nine-month period versus $268 million for the same period in 2007, including special items in both periods. The decrease was primarily
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driven by lower gains and dividends from the sale of Redecard securities and the settlement received in 2007 related to discontinuing the company’s sponsorship of World Cup soccer events, partially offset by the termination of a customer business agreement in the first quarter of 2008. Additionally, interest expense versus the year-ago period increased $25 million primarily due to the interest accretion associated with the American Express settlement.
MasterCard’s effective tax rate, excluding special items, was 36.6% in the nine months ended September 30, 2008, versus a rate of 35.1% in the comparable period in 2007. The increase was primarily driven by a tax charge for the remeasurement of deferred tax assets, as a result of a change in the company’s estimated effective state tax rate. Including the special items, the effective tax rate was 40.4% for the 2008 period, and 35.1% for the 2007 period. The increase in the effective tax rate was primarily due to the tax benefits related to the charges for the American Express and Discover settlements. This was partially offset by the tax charge for the remeasurement of deferred tax assets.
Third-Quarter 2008 Financial Results Conference Call Details
At 5:00 p.m. EST today, the company will host a conference call to discuss its third-quarter 2008 financial results.
The dial-in information for this call is 800-299-7635 (within the US) and 617-786-2901 (outside the US) and the passcode is 66633880. A replay of the call will be available for one week thereafter. The replay can be accessed by dialing 888-286-8010 (within the US) and 617-801-6888 (outside the US) and using passcode 73000963.
The live call and the replay, along with supporting materials, can also be accessed through the Investor Relations section of the company’s website at www.mastercard.com.
About MasterCard Incorporated
MasterCard Incorporated advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 18 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com.
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Forward-Looking Statements
Statements in this press release which are not historical facts, including statements about MasterCard’s plans, strategies, beliefs and expectations, are forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date they are made. Accordingly, except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events. Such forward-looking statements include, without limitation:
| • | | the company’s ability to benefit from the continued migration of consumers, businesses, and governments to various forms of electronic payments; |
| • | | the company’s ability to navigate through the current economic environment; |
| • | | the company’s ability to manage and refine its cost structure to drive current and future growth; |
| • | | the company’s ability to align and work with customers to help them continue to develop the value of their payments businesses; |
| • | | the company’s ability to advance commerce globally and displace cash and checks; and |
| • | | the company’s ability to deliver on its commitments to create long-term value for customers, merchants and shareholders. |
Actual results may differ materially from such forward-looking statements for a number of reasons, including those set forth in the company’s filings with the Securities and Exchange Commission (SEC), including the company’s Annual Report on Form 10-K for the year ended December 31, 2007, the company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that have been filed with the SEC during 2008, as well as reasons including difficulties, delays or the inability of the company to achieve its strategic initiatives set forth above. Factors other than those listed above could also cause the company’s results to differ materially from expected results.
Contacts:
Investor Relations: Barbara Gasper, investor_relations@mastercard.com, 914-249-4565
Media Relations: Chris Monteiro, chris_monteiro@mastercard.com, 914-249-5826
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MASTERCARD INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| | | | | | | | | | | | | | | | |
| | | Three Months
Ended September 30, | | | Nine Months
Ended September 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | (In thousands, except per share data) | |
Revenues, net | | $ | 1,338,178 | | | $ | 1,082,850 | | | $ | 3,766,766 | | | $ | 2,994,912 | |
Operating Expenses | | | | | | | | | | | | | | | | |
General and administrative | | | 493,740 | | | | 432,848 | | | | 1,435,089 | | | | 1,262,838 | |
Advertising and marketing | | | 267,460 | | | | 264,425 | | | | 769,737 | | | | 711,128 | |
Litigation settlements | | | 827,500 | | | | — | | | | 2,476,845 | | | | 3,400 | |
Charitable contributions to the MasterCard Foundation | | | — | | | | 10,000 | | | | — | | | | 10,000 | |
Depreciation and amortization | | | 28,742 | | | | 22,274 | | | | 81,956 | | | | 71,490 | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 1,617,442 | | | | 729,547 | | | | 4,763,627 | | | | 2,058,856 | |
| | | | | | | | | | | | | | | | |
Operating income (loss) | | | (279,264 | ) | | | 353,303 | | | | (996,861 | ) | | | 936,056 | |
Other Income (Expense) | | | | | | | | | | | | | | | | |
Investment income, net | | | 22,626 | | | | 146,322 | | | | 163,081 | | | | 219,036 | |
Interest expense | | | (36,319 | ) | | | (16,439 | ) | | | (67,075 | ) | | | (41,964 | ) |
Other income (expense), net | | | (715 | ) | | | (879 | ) | | | 72,582 | | | | 91,268 | |
| | | | | | | | | | | | | | | | |
Total other income (expense) | | | (14,408 | ) | | | 129,004 | | | | 168,588 | | | | 268,340 | |
| | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | | (293,672 | ) | | | 482,307 | | | | (828,273 | ) | | | 1,204,396 | |
Income tax expense (benefit) | | | (100,090 | ) | | | 167,846 | | | | (334,916 | ) | | | 422,743 | |
| | | | | | | | | | | | | | | | |
Net Income (Loss) | | $ | (193,582 | ) | | $ | 314,461 | | | $ | (493,357 | ) | | $ | 781,653 | |
| | | | | | | | | | | | | | | | |
Basic Net Income (Loss) per Share | | $ | (1.49 | ) | | $ | 2.32 | | | $ | (3.79 | ) | | $ | 5.76 | |
| | | | | | | | | | | | | | | | |
Basic Weighted Average Shares Outstanding | | | 129,536 | | | | 135,357 | | | | 130,342 | | | | 135,687 | |
| | | | | | | | | | | | | | | | |
Diluted Net Income (Loss) per Share | | $ | (1.49 | ) | | $ | 2.31 | | | $ | (3.79 | ) | | $ | 5.73 | |
| | | | | | | | | | | | | | | | |
Diluted Weighted Average Shares Outstanding | | | 129,536 | | | | 136,228 | | | | 130,342 | | | | 136,502 | |
| | | | | | | | | | | | | | | | |
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MASTERCARD INCORPORATED
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| | | | | | | | |
| | | September 30,
2008 | | | December 31,
2007 | |
| | | (In thousands, except share data) | |
| ASSETS | | | | | | | | |
Cash and cash equivalents | | $ | 2,071,457 | | | $ | 1,659,295 | |
Investment securities, at fair value: | | | | | | | | |
Trading | | | — | | | | 2,561 | |
Available-for-sale | | | 679,645 | | | | 1,308,126 | |
Municipal bonds held-to-maturity | | | 154,000 | | | | — | |
Accounts receivable | | | 610,760 | | | | 532,633 | |
Income taxes receivable | | | 256,469 | | | | — | |
Settlement due from customers | | | 625,185 | | | | 712,558 | |
Restricted security deposits held for customers | | | 142,359 | | | | 142,052 | |
Prepaid expenses | | | 261,334 | | | | 156,258 | |
Deferred income taxes | | | 228,944 | | | | 44,525 | |
Other current assets | | | 40,490 | | | | 33,733 | |
| | | | | | | | |
Total Current Assets | | | 5,070,643 | | | | 4,591,741 | |
Property, plant and equipment, at cost (less accumulated depreciation of $280,439 and $250,888) | | | 299,791 | | | | 290,200 | |
Deferred income taxes | | | 654,481 | | | | 263,143 | |
Goodwill | | | 239,297 | | | | 239,626 | |
Other intangible assets (less accumulated amortization of $377,624 and $347,977) | | | 370,964 | | | | 320,758 | |
Investment securities available-for-sale, at fair value | | | 219,015 | | | | — | |
Municipal bonds held-to-maturity | | | 37,450 | | | | 192,489 | |
Prepaid expenses | | | 299,664 | | | | 274,962 | |
Other assets | | | 81,670 | | | | 87,122 | |
| | | | | | | | |
Total Assets | | $ | 7,272,975 | | | $ | 6,260,041 | |
| | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Accounts payable | | $ | 224,255 | | | $ | 252,391 | |
Settlement due to customers | | | 535,966 | | | | 604,212 | |
Restricted security deposits held for customers | | | 142,359 | | | | 142,052 | |
Obligations under litigation settlements | | | 1,569,623 | | | | 107,235 | |
Accrued expenses | | | 1,061,297 | | | | 1,071,557 | |
Short-term debt | | | 149,380 | | | | 80,000 | |
Other current liabilities | | | 117,503 | | | | 105,895 | |
| | | | | | | | |
Total Current Liabilities | | | 3,800,383 | | | | 2,363,342 | |
Deferred income taxes | | | 76,181 | | | | 71,278 | |
Obligations under litigation settlements | | | 1,243,551 | | | | 297,201 | |
Long-term debt | | | 19,586 | | | | 149,824 | |
Other liabilities | | | 363,523 | | | | 346,469 | |
| | | | | | | | |
Total Liabilities | | | 5,503,224 | | | | 3,228,114 | |
Commitments and Contingencies | | | | | | | | |
Minority interest | | | 4,620 | | | | 4,620 | |
Stockholders’ Equity | | | | | | | | |
Class A common stock, $.0001 par value; authorized 3,000,000,000 shares, 105,125,863 and 91,243,433 shares issued and 98,385,273 and 87,321,541 outstanding, respectively | | | 10 | | | | 9 | |
Class B common stock, $.0001 par value; authorized 1,200,000,000 shares, 30,848,778 and 43,948,778 shares issued and outstanding, respectively | | | 4 | | | | 5 | |
Class M common stock, $.0001 par value, authorized 1,000,000 shares, 1,713 and 1,664 shares issued and outstanding, respectively | | | — | | | | — | |
Additional paid-in capital | | | 3,309,413 | | | | 3,312,380 | |
Class A treasury stock, at cost, 6,740,590 and 3,921,892 shares, respectively | | | (1,250,000 | ) | | | (600,532 | ) |
Retained earnings (accumulated deficit) | | | (475,559 | ) | | | 37,699 | |
Accumulated other comprehensive income: | | | | | | | | |
Cumulative foreign currency translation adjustments | | | 197,603 | | | | 216,651 | |
Defined benefit pension and other postretirement plans, net of tax | | | (3,133 | ) | | | (3,555 | ) |
Investment securities available-for-sale, net of tax | | | (13,207 | ) | | | 64,650 | |
| | | | | | | | |
Total accumulated other comprehensive income | | | 181,263 | | | | 277,746 | |
| | | | | | | | |
Total Stockholders’ Equity | | | 1,765,131 | | | | 3,027,307 | |
| | | | | | | | |
Total Liabilities and Stockholders’ Equity | | $ | 7,272,975 | | | $ | 6,260,041 | |
| | | | | | | | |
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MASTERCARD INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| | | | | | | | |
| | | Nine Months
Ended September 30, | |
| | | 2008 | | | 2007 | |
| | | (In thousands) | |
Operating Activities | | | | | | | | |
Net income (loss) | | $ | (493,357 | ) | | $ | 781,653 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 81,956 | | | | 71,490 | |
Gain on sale of Redecard S.A. available-for-sale securities | | | (85,903 | ) | | | (107,042 | ) |
Share based payments | | | 44,217 | | | | 35,909 | |
Stock units settled in cash for taxes | | | (66,095 | ) | | | (11,193 | ) |
Tax benefit for share based compensation | | | (48,901 | ) | | | (7,598 | ) |
Impairment of investments | | | 10,600 | | | | — | |
Accretion of imputed interest on litigation settlements | | | 47,490 | | | | 28,248 | |
Deferred income taxes | | | (531,454 | ) | | | (8,170 | ) |
Other | | | 9,482 | | | | 8,855 | |
Changes in operating assets and liabilities: | | | | | | | | |
Trading securities | | | 2,561 | | | | 7,225 | |
Accounts receivable | | | (75,851 | ) | | | (68,655 | ) |
Income taxes receivable | | | (256,469 | ) | | | — | |
Settlement due from customers | | | 74,875 | | | | (9,499 | ) |
Prepaid expenses | | | (105,880 | ) | | | (32,657 | ) |
Other current assets | | | (9,759 | ) | | | (1,375 | ) |
Prepaid expenses, non-current | | | (28,882 | ) | | | (19,352 | ) |
Litigation settlement accruals | | | 2,361,248 | | | | (10,525 | ) |
Accounts payable | | | (31,871 | ) | | | (36,109 | ) |
Settlement due to customers | | | (58,448 | ) | | | (18,038 | ) |
Accrued expenses | | | 41,914 | | | | 72,644 | |
Net change in other assets and liabilities | | | 49,111 | | | | 41,852 | |
| | | | | | | | |
Net cash provided by operating activities | | | 930,584 | | | | 717,663 | |
| | | | | | | | |
Investing Activities | | | | | | | | |
Purchases of property, plant and equipment | | | (51,250 | ) | | | (59,339 | ) |
Capitalized software | | | (71,267 | ) | | | (52,322 | ) |
Purchases of investment securities available-for-sale | | | (495,606 | ) | | | (2,749,413 | ) |
Proceeds from sales and maturities of investment securities available-for-sale | | | 851,987 | | | | 2,928,342 | |
Other investing activities | | | (2,223 | ) | | | 8,551 | |
| | | | | | | | |
Net cash provided by investing activities | | | 231,641 | | | | 75,819 | |
| | | | | | | | |
Financing Activities | | | | | | | | |
Dividends paid | | | (59,576 | ) | | | (53,805 | ) |
Cash proceeds from exercise of stock options | | | 9,335 | | | | 1,083 | |
Tax benefit for share based compensation | | | 48,901 | | | | 7,598 | |
Payment of debt | | | (80,000 | ) | | | — | |
Purchase of treasury stock | | | (649,468 | ) | | | (277,164 | ) |
| | | | | | | | |
Net cash used in financing activities | | | (730,808 | ) | | | (322,288 | ) |
| | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | | | (19,255 | ) | | | 31,149 | |
| | | | | | | | |
Net increase in cash and cash equivalents | | | 412,162 | | | | 502,343 | |
Cash and cash equivalents — beginning of period | | | 1,659,295 | | | | 1,185,080 | |
| | | | | | | | |
Cash and cash equivalents — end of period | | $ | 2,071,457 | | | $ | 1,687,423 | |
| | | | | | | | |
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MASTERCARD INCORPORATED OPERATING PERFORMANCE
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the 3 Months ended September 30, 2008 |
| | | GDV
(Bil.) | | Growth
(USD) | | | Growth
(Local) | | | Purchase
Volume
(Bil.) | | Growth
(Local) | | | Purchase
Trans.
(Mil.) | | Cash
Volume
(Bil.) | | Growth
(Local) | | | Cash
Trans.
(Mil.) | | Accounts
(Mil.) | | Cards
(Mil.) | | Acceptance
Locations
(Mil.) |
All MasterCard Credit,
Charge and Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | | $ | 95 | | 23.6 | % | | 21.3 | % | | $ | 68 | | 24.6 | % | | 803 | | $ | 27 | | 13.9 | % | | 176 | | 176 | | 192 | | 7.6 |
Canada | | | 27 | | 16.5 | % | | 16.0 | % | | | 23 | | 15.2 | % | | 255 | | | 4 | | 21.5 | % | | 6 | | 33 | | 39 | | 0.8 |
Europe | | | 209 | | 23.0 | % | | 16.8 | % | | | 154 | | 17.1 | % | | 1,637 | | | 55 | | 15.9 | % | | 279 | | 183 | | 197 | | 8.2 |
Latin America | | | 48 | | 24.0 | % | | 15.5 | % | | | 26 | | 18.9 | % | | 452 | | | 23 | | 11.9 | % | | 143 | | 90 | | 110 | | 3.0 |
South Asia / Middle East /
Africa | | | 14 | | 27.2 | % | | 32.9 | % | | | 7 | | 24.9 | % | | 98 | | | 7 | | 42.9 | % | | 52 | | 35 | | 40 | | 1.0 |
United States | | | 268 | | 4.7 | % | | 4.7 | % | | | 218 | | 6.6 | % | | 3,479 | | | 49 | | -3.3 | % | | 260 | | 344 | | 392 | | 7.8 |
Worldwide | | | 662 | | 14.8 | % | | 12.3 | % | | | 497 | | 13.3 | % | | 6,724 | | | 165 | | 9.5 | % | | 914 | | 861 | | 970 | | 28.4 |
MasterCard Credit and Charge
Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 162 | | -1.3 | % | | -1.3 | % | | | 141 | | 1.5 | % | | 1,596 | | | 21 | | -16.6 | % | | 14 | | 229 | | 269 | | |
Worldwide less United States | | | 311 | | 21.1 | % | | 17.1 | % | | | 248 | | 19.2 | % | | 2,775 | | | 63 | | 9.6 | % | | 257 | | 431 | | 486 | | |
Worldwide | | | 472 | | 12.4 | % | | 10.1 | % | | | 388 | | 12.1 | % | | 4,371 | | | 84 | | 1.6 | % | | 272 | | 660 | | 755 | | |
MasterCard Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 106 | | 15.3 | % | | 15.3 | % | | | 78 | | 17.5 | % | | 1,884 | | | 28 | | 9.6 | % | | 245 | | 115 | | 123 | | |
Worldwide less United States | | | 84 | | 30.3 | % | | 22.1 | % | | | 30 | | 17.6 | % | | 469 | | | 53 | | 24.8 | % | | 397 | | 86 | | 92 | | |
Worldwide | | | 190 | | 21.4 | % | | 18.2 | % | | | 108 | | 17.5 | % | | 2,352 | | | 82 | | 19.0 | % | | 643 | | 201 | | 215 | | |
| | |
| | | For the 9 Months ended September 30, 2008 | | |
| | | GDV
(Bil.) | | Growth
(USD) | | | Growth
(Local) | | | Purchase
Volume
(Bil.) | | Growth
(Local) | | | Purchase
Trans.
(Mil.) | | Cash
Volume
(Bil.) | | Growth
(Local) | | | Cash
Trans.
(Mil.) | | Accounts
(Mil.) | | Cards
(Mil.) | | |
All MasterCard Credit,
Charge and Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | | $ | 276 | | 26.1 | % | | 19.8 | % | | $ | 195 | | 23.4 | % | | 2,260 | | $ | 80 | | 11.9 | % | | 483 | | 176 | | 192 | | |
Canada | | | 79 | | 22.8 | % | | 13.8 | % | | | 67 | | 13.9 | % | | 710 | | | 11 | | 13.0 | % | | 16 | | 33 | | 39 | | |
Europe | | | 596 | | 27.8 | % | | 17.4 | % | | | 441 | | 17.8 | % | | 4,652 | | | 155 | | 16.2 | % | | 798 | | 183 | | 197 | | |
Latin America | | | 139 | | 26.2 | % | | 17.7 | % | | | 72 | | 20.3 | % | | 1,302 | | | 67 | | 15.0 | % | | 418 | | 90 | | 110 | | |
South Asia / Middle East /
Africa | | | 39 | | 29.5 | % | | 32.1 | % | | | 21 | | 25.5 | % | | 282 | | | 19 | | 40.2 | % | | 147 | | 35 | | 40 | | |
United States | | | 797 | | 6.5 | % | | 6.5 | % | | | 646 | | 8.3 | % | | 10,221 | | | 151 | | -0.2 | % | | 771 | | 344 | | 392 | | |
Worldwide | | | 1,926 | | 17.6 | % | | 13.1 | % | | | 1,442 | | 14.0 | % | | 19,427 | | | 484 | | 10.3 | % | | 2,633 | | 861 | | 970 | | |
MasterCard Credit and Charge
Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 479 | | 1.2 | % | | 1.2 | % | | | 414 | | 3.3 | % | | 4,675 | | | 65 | | -10.8 | % | | 44 | | 229 | | 269 | | |
Worldwide less United States | | | 893 | | 25.7 | % | | 17.5 | % | | | 710 | | 19.6 | % | | 7,886 | | | 183 | | 10.1 | % | | 754 | | 431 | | 486 | | |
Worldwide | | | 1,373 | | 15.9 | % | | 11.2 | % | | | 1,124 | | 13.0 | % | | 12,561 | | | 249 | | 3.7 | % | | 798 | | 660 | | 755 | | |
MasterCard Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 318 | | 15.8 | % | | 15.8 | % | | | 232 | | 18.3 | % | | 5,545 | | | 86 | | 9.7 | % | | 726 | | 115 | | 123 | | |
Worldwide less United States | | | 236 | | 31.5 | % | | 21.0 | % | | | 86 | | 16.4 | % | | 1,321 | | | 150 | | 23.9 | % | | 1,109 | | 86 | | 92 | | |
Worldwide | | | 554 | | 22.0 | % | | 18.0 | % | | | 318 | | 17.8 | % | | 6,867 | | | 236 | | 18.3 | % | | 1,835 | | 201 | | 215 | | |
| | |
| | | For the 3 Months ended September 30, 2007 | | |
| | | GDV
(Bil.) | | Growth
(USD) | | | Growth
(Local) | | | Purchase
Volume
(Bil.) | | Growth
(Local) | | | Purchase
Trans.
(Mil.) | | Cash
Volume
(Bil.) | | Growth
(Local) | | | Cash
Trans.
(Mil.) | | Accounts
(Mil.) | | Cards
(Mil.) | | |
All MasterCard Credit,
Charge and Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | | $ | 77 | | 21.5 | % | | 16.3 | % | | $ | 54 | | 22.1 | % | | 658 | | $ | 24 | | 5.1 | % | | 138 | | 155 | | 168 | | |
Canada | | | 23 | | 21.2 | % | | 13.3 | % | | | 20 | | 14.1 | % | | 222 | | | 3 | | 8.0 | % | | 5 | | 28 | | 34 | | |
Europe | | | 170 | | 26.0 | % | | 16.3 | % | | | 125 | | 17.0 | % | | 1,446 | | | 45 | | 14.5 | % | | 250 | | 158 | | 171 | | |
Latin America | | | 39 | | 24.3 | % | | 20.3 | % | | | 20 | | 23.9 | % | | 393 | | | 19 | | 16.8 | % | | 129 | | 75 | | 92 | | |
South Asia / Middle East /
Africa | | | 11 | | 40.9 | % | | 36.4 | % | | | 6 | | 29.0 | % | | 88 | | | 5 | | 47.0 | % | | 38 | | 27 | | 31 | | |
United States | | | 256 | | 7.7 | % | | 7.7 | % | | | 205 | | 9.4 | % | | 3,225 | | | 51 | | 1.2 | % | | 250 | | 330 | | 384 | | |
Worldwide | | | 576 | | 16.6 | % | | 12.8 | % | | | 430 | | 14.1 | % | | 6,031 | | | 146 | | 8.9 | % | | 811 | | 772 | | 879 | | |
MasterCard Credit and Charge
Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 164 | | 5.4 | % | | 5.4 | % | | | 139 | | 7.1 | % | | 1,602 | | | 25 | | -3.4 | % | | 18 | | 230 | | 275 | | |
Worldwide less United States | | | 256 | | 24.7 | % | | 16.8 | % | | | 201 | | 19.2 | % | | 2,408 | | | 55 | | 8.6 | % | | 244 | | 377 | | 425 | | |
Worldwide | | | 420 | | 16.4 | % | | 12.0 | % | | | 340 | | 14.0 | % | | 4,009 | | | 80 | | 4.6 | % | | 262 | | 606 | | 700 | | |
MasterCard Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 92 | | 12.1 | % | | 12.1 | % | | | 66 | | 14.7 | % | | 1,623 | | | 26 | | 6.1 | % | | 232 | | 100 | | 108 | | |
Worldwide less United States | | | 64 | | 25.2 | % | | 18.7 | % | | | 24 | | 15.1 | % | | 399 | | | 40 | | 20.9 | % | | 317 | | 66 | | 71 | | |
Worldwide | | | 156 | | 17.1 | % | | 14.7 | % | | | 90 | | 14.8 | % | | 2,022 | | | 66 | | 14.6 | % | | 548 | | 166 | | 179 | | |
| | |
| | | For the 9 Months ended September 30, 2007 | | |
| | | GDV
(Bil.) | | Growth
(USD) | | | Growth
(Local) | | | Purchase
Volume
(Bil.) | | Growth
(Local) | | | Purchase
Trans.
(Mil.) | | Cash
Volume
(Bil.) | | Growth
(Local) | | | Cash
Trans.
(Mil.) | | Accounts
(Mil.) | | Cards
(Mil.) | | |
All MasterCard Credit,
Charge and Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Asia Pacific | | $ | 219 | | 19.6 | % | | 15.6 | % | | $ | 150 | | 21.1 | % | | 1,869 | | $ | 69 | | 5.1 | % | | 394 | | 155 | | 168 | | |
Canada | | | 64 | | 17.6 | % | | 14.3 | % | | | 55 | | 14.4 | % | | 626 | | | 9 | | 13.8 | % | | 15 | | 28 | | 34 | | |
Europe | | | 466 | | 24.8 | % | | 15.3 | % | | | 345 | | 15.9 | % | | 4,088 | | | 121 | | 13.8 | % | | 715 | | 158 | | 171 | | |
Latin America | | | 110 | | 24.3 | % | | 21.8 | % | | | 54 | | 24.8 | % | | 1,120 | | | 56 | | 19.0 | % | | 374 | | 75 | | 92 | | |
South Asia / Middle East /
Africa | | | 30 | | 38.6 | % | | 41.3 | % | | | 17 | | 31.8 | % | | 253 | | | 13 | | 55.6 | % | | 111 | | 27 | | 31 | | |
United States | | | 748 | | 10.9 | % | | 10.9 | % | | | 597 | | 13.1 | % | | 9,342 | | | 152 | | 3.2 | % | | 738 | | 330 | | 384 | | |
Worldwide | | | 1,638 | | 17.3 | % | | 14.0 | % | | | 1,218 | | 15.6 | % | | 17,297 | | | 420 | | 9.8 | % | | 2,346 | | 772 | | 879 | | |
MasterCard Credit and Charge
Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 474 | | 5.1 | % | | 5.1 | % | | | 401 | | 7.4 | % | | 4,604 | | | 73 | | -6.1 | % | | 51 | | 230 | | 275 | | |
Worldwide less United States | | | 710 | | 22.9 | % | | 16.4 | % | | | 555 | | 18.6 | % | | 6,820 | | | 156 | | 9.1 | % | | 705 | | 377 | | 425 | | |
Worldwide | | | 1,184 | | 15.1 | % | | 11.6 | % | | | 956 | | 13.6 | % | | 11,424 | | | 229 | | 3.7 | % | | 756 | | 606 | | 700 | | |
MasterCard Debit Programs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 275 | | 22.7 | % | | 22.7 | % | | | 196 | | 26.7 | % | | 4,738 | | | 79 | | 13.6 | % | | 687 | | 100 | | 108 | | |
Worldwide less United States | | | 179 | | 24.9 | % | | 18.7 | % | | | 66 | | 14.5 | % | | 1,135 | | | 113 | | 21.3 | % | | 904 | | 66 | | 71 | | |
Worldwide | | | 454 | | 23.5 | % | | 21.1 | % | | | 262 | | 23.4 | % | | 5,873 | | | 191 | | 18.0 | % | | 1,591 | | 166 | | 179 | | |
Note that columns in the tables above may not add due to rounding; growth represents change from the comparable year-ago period.
MasterCard Incorporated – Page 10
Footnote
The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions, accounts, cards and acceptance locations on a regional and global basis for MasterCard®-branded and MasterCard Electronic™-branded cards. Growth rates over prior periods are provided for volume-based data.
Debit transactions on Maestro® and Cirrus®-branded cards, Mondex® transactions and transactions involving brands other than MasterCard are not included in the preceding tables.
For purposes of the table: GDV represents purchase volume plus cash volume and includes the impact of balance transfers and convenience checks; “purchase volume” means the aggregate dollar amount of purchases made with MasterCard-branded cards for the relevant period; and “cash volume” means the aggregate dollar amount of cash disbursements obtained with MasterCard-branded cards for the relevant period. The number of cards includes virtual cards, which are MasterCard-branded payment accounts in connection with which functional cards are not generally issued. Acceptance locations include merchant locations, ATMs and other locations where cash may be obtained.
The MasterCard payment product is comprised of credit, charge and debit programs, and data relating to each type of program is included in the tables. Debit programs include MasterCard-branded debit programs where the primary means of cardholder validation at the point of sale is for cardholders either to sign a sales receipt or enter a PIN. The tables include information with respect to transactions involving MasterCard-branded cards that are not processed by MasterCard and transactions for which MasterCard does not earn significant revenues.
Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which MasterCard volumes are reported. These exchange rates are calculated on a quarterly basis using the average exchange rate for each quarter. MasterCard reports period-over-period rates of change in purchase volume and cash volume on the basis of local currency information, in order to eliminate the impact of changes in the value of foreign currencies against the U.S. dollar in calculating such rates of change.
The data set forth in the GDV, purchase volume, purchase transactions, cash volume and cash transactions columns is provided by MasterCard customers and is subject to verification by MasterCard and partial cross-checking against information provided by MasterCard’s transaction processing systems. The data set forth in the accounts and cards columns is provided by MasterCard customers and is subject to certain limited verification by MasterCard. A portion of the data set forth in the accounts and cards columns reflects the impact of routine portfolio changes among customers and other practices that may lead to over counting of the underlying data in certain circumstances. In order to provide a true indication of how broadly our cards can be used, MasterCard seeks to provide the most accurate acceptance figures possible and to maintain that MasterCard acceptance is unsurpassed worldwide by periodically validating our results with third parties. The data set forth in the acceptance locations column is derived through a proprietary methodology designed to minimize the impact of multiple acquiring in certain markets. This data is based on information provided by our customers and other third parties and is subject to certain limited verification by MasterCard and partial cross-checking against information provided by MasterCard’s transaction processing systems. All data is subject to revision and amendment by MasterCard’s customers subsequent to the date of its release.
Performance information for prior periods can be found in the “Investor Relations” section of MasterCard’s website at www.mastercard.com.
MasterCard Incorporated – Page 11
Reconciliation to Total Operating Expenses, Total Other Income, Net Income and Earnings Per Share
| | | | | | | | | | | | | | | | | | | | | | | | | |
| ($ million) | | For the three months ended 9/30/08 | | | For the three months ended 9/30/07 | | | YOY Growth | |
| | | Actual | | | Special
Items | | As
Adjusted | | | Actual | | | Special
Items | | As
Adjusted | | | As Adjusted | |
Revenues, net | | $ | 1,338 | | | $ | — | | $ | 1,338 | | | $ | 1,083 | | | $ | — | | $ | 1,083 | | | 23.6 | % |
Operating Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative | | | 494 | | | | — | | | 494 | | | | 433 | | | | — | | | 433 | | | 14.1 | % |
Advertising and marketing | | | 267 | | | | — | | | 267 | | | | 264 | | | | — | | | 264 | | | 1.1 | % |
Litigation settlements | | | 828 | | | | 828 a | | | — | | | | — | | | | — | | | — | | | — | |
Charitable contributions to the MasterCard Foundation | | | — | | | | — | | | — | | | | 10 | | | | — | | | 10 | | | NM | |
Depreciation and amortization | | | 29 | | | | — | | | 29 | | | | 22 | | | | — | | | 22 | | | 29.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 1,617 | | | | 828 | | | 790 | | | | 730 | | | | — | | | 730 | | | 8.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | (279 | ) | | | 828 | | | 548 | | | | 353 | | | | — | | | 353 | | | 55.2 | % |
Operating Margin | | | (20.9 | %) | | | — | | | 41.0 | % | | | 32.6 | % | | | — | | | 32.6 | % | | 8.4 | ppt. |
Other Income (Expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income, net | | | 23 | | | | — | | | 23 | | | | 146 | | | | — | | | 146 | | | (84.5 | %) |
Interest expense | | | (36 | ) | | | — | | | (36 | ) | | | (16 | ) | | | — | | | (16 | ) | | 120.9 | % |
Other income, net | | | (1 | ) | | | — | | | (1 | ) | | | (1 | ) | | | | | | (1 | ) | | (18.7 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | (14 | ) | | | — | | | (14 | ) | | | 129 | | | | — | | | 129 | | | (111.2 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | | (294 | ) | | | 828 | | | 534 | | | | 482 | | | | — | | | 482 | | | 10.7 | % |
Income tax expense (benefit) | | | (100 | ) | | | 312 | | | 212 | | | | 168 | | | | — | | | 168 | | | 26.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net Income (Loss) | | $ | (194 | ) | | $ | 516 | | $ | 322 | | | $ | 314 | | | $ | — | | $ | 314 | | | 2.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Basic Net Income (Loss) per Share | | $ | (1.49 | ) | | $ | 3.97 | | $ | 2.48 | | | $ | 2.32 | | | $ | — | | $ | 2.32 | | | 6.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted Net Income (Loss) per Share | | $ | (1.49 | ) | | $ | 3.96 | | $ | 2.47 | | | $ | 2.31 | | | $ | — | | $ | 2.31 | | | 6.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ($ million) | | For the nine months ended 9/30/08 | | | For the nine months ended 9/30/07 | | | YOY Growth | |
| | | Actual | | | Special
Items | | | As
Adjusted | | | Actual | | | Special
Items | | | As
Adjusted | | | As Adjusted | |
Revenues, net | | $ | 3,767 | | | $ | — | | | $ | 3,767 | | | $ | 2,995 | | | | — | | | $ | 2,995 | | | 25.8 | % |
Operating Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative | | | 1,435 | | | | — | | | | 1,435 | | | | 1,263 | | | | — | | | | 1,263 | | | 13.6 | % |
Advertising and marketing | | | 770 | | | | — | | | | 770 | | | | 711 | | | | — | | | | 711 | | | 8.2 | % |
Litigation settlements | | | 2,477 | | | | 2,477 | a | | | — | | | | 3 | | | | 3 | a | | | — | | | NM | |
Charitable contributions to the MasterCard Foundation | | | — | | | | — | | | | — | | | | 10 | | | | — | | | | 10 | | | (100.0 | %) |
Depreciation and amortization | | | 82 | | | | — | | | | 82 | | | | 71 | | | | — | | | | 71 | | | 14.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 4,764 | | | | 2,477 | | | | 2,287 | | | | 2,059 | | | | 3 | | | | 2,056 | | | 11.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | (997 | ) | | | 2,477 | | | | 1,480 | | | | 936 | | | | 3 | | | | 939 | | | 57.5 | % |
Operating Margin | | | (26.5 | %) | | | — | | | | 39.3 | % | | | 31.3 | % | | | — | | | | 31.4 | % | | 7.9 | ppt. |
Other Income (Expense) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income, net | | | 163 | | | | — | | | | 163 | | | | 219 | | | | — | | | | 219 | | | (25.5 | %) |
Interest expense | | | (67 | ) | | | — | | | | (67 | ) | | | (42 | ) | | | — | | | | (42 | ) | | 59.8 | % |
Other income, net | | | 73 | | | | 75 | b | | | (2 | ) | | | 91 | | | | 90 | c | | | 1 | | | NM | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | 169 | | | | 75 | | | | 94 | | | | 268 | | | | 90 | | | | 178 | | | (47.5 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | | (828 | ) | | | 2,402 | | | | 1,574 | | | | 1,204 | | | | (87 | ) | | | 1,117 | | | 40.8 | % |
Income tax expense (benefit) | | | (335 | ) | | | 913 | | | | 578 | | | | 423 | | | | (30 | ) | | | 393 | | | 47.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Income (Loss) | | $ | (493 | ) | | $ | 1,489 | | | $ | 996 | | | $ | 782 | | | $ | (57 | ) | | $ | 724 | | | 37.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic Net Income (Loss) per Share | | $ | (3.79 | ) | | $ | 11.43 | | | $ | 7.64 | | | $ | 5.76 | | | $ | (0.42 | ) | | $ | 5.34 | | | 43.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted Net Income (Loss) per Share | | $ | (3.79 | ) | | $ | 11.38 | | | $ | 7.59 | | | $ | 5.73 | | | $ | (0.42 | ) | | $ | 5.31 | | | 42.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
b | Gain from the termination of a customer business agreement |
c | Other income related to a settlement agreement to discontinue the company’s sponsorship of the 2010 and 2014 World Cup soccer events |
NM = Not meaningful
Note that the figures in the preceding tables may not sum due to rounding
MasterCard Incorporated – Page 12
Reconciliation to Effective Tax Rate
| | | | | | | | | | | | | | | | |
| | | GAAP
Actual | | | GAAP
Effective
Tax Rate | | | Litigation
Settlements | | Non-
GAAP
Adjusted | | Adjusted
Effective
Tax Rate
Non-GAAP | |
| | | (In millions, except percentages) | |
Three months ended September 30, 2008: | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | $ | (294 | ) | | 34.1 | % | | $ | 828 | | $ | 534 | | 39.7 | % |
Income tax expense (benefit) | | | (100 | ) | | | | | | 312 | | | 212 | | | |
| | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (194 | ) | | | | | $ | 516 | | $ | 322 | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | GAAP
Actual | | | GAAP
Effective
Tax Rate | | | Litigation
Settlements | | Non-
GAAP
Adjusted | | Adjusted
Effective
Tax Rate
Non-GAAP | |
| | | (In millions, except percentages) | |
Nine months ended September 30, 2008: | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | $ | (828 | ) | | 40.4 | % | | $ | 2,477 | | $ | 1,649 | | 36.6 | % |
Income tax expense (benefit) | | | (335 | ) | | | | | | 939 | | | 604 | | | |
| | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (493 | ) | | | | | $ | 1,538 | | $ | 1,045 | | | |
| | | | | | | | | | | | | | | | |
Note that the figures in the preceding tables may not sum due to rounding
For more information about these reconciliations, refer to MasterCard Incorporated’s Form 8-K filed with the Securities and Exchange Commission on November 3, 2008.
###
