Business Context and Reporting Period
Company: MasterCard Incorporated
Filing Type: Form 8-K (Current Report)
Date of Report: July 31, 2013
Reporting Period: Second quarter ended June 30, 2013
This filing announces the issuance of a press release and presentation regarding financial results for the second quarter of 2013. The document serves as a notification of these results and the accompanying conference call, rather than a detailed financial statement itself.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained within the attached press release (Exhibit 99.1) and presentation (Exhibit 99.2), which are furnished but not filed as part of this text.
Material Changes and Non-GAAP Adjustments
The filing highlights the use of specific non-GAAP financial measures to facilitate comparison with prior periods, specifically adjusting for:
- U.S. Merchant Litigation: Exclusion of charges related to U.S. merchant litigations accrued during the three and six months ended June 30, 2012, from operating expenses, operating income, net income, and earnings per diluted share.
- Effective Tax Rate: Exclusion of income tax benefits associated with the aforementioned litigation charges for the same periods.
- Currency Adjustments: Presentation of growth rates adjusted for foreign currency rate fluctuations by remeasuring prior period results using current period exchange rates.
Management utilizes these adjustments to evaluate ongoing operations separately from material litigation settlements and to account for currency impacts.
Guidance, Outlook, and Risks
Management Commentary: Management intends to discuss the second-quarter results on a conference call hosted on July 31, 2013. The presentation for this call is attached as Exhibit 99.2.
Regulatory Disclosure: The filing includes a Regulation FD disclosure regarding the conference call.
Risks and Contingencies: The text references the U.S. merchant litigations as a material item affecting prior period comparability, though it does not detail current litigation risks or contingencies beyond the historical adjustments mentioned.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific GAAP and non-GAAP financial figures for Q2 2013.
- Examine the reconciliation tables in the press release to understand the magnitude of the U.S. merchant litigation adjustments.
- Consult Exhibit 99.2 (Presentation) for management's outlook, guidance, and detailed commentary on currency impacts.
- Verify the specific impact of foreign exchange rates on reported growth rates as described in the non-GAAP methodology.