Mastercard Inc. Form 8-K Summary
Business Context and Reporting Period
Mastercard Incorporated filed this Current Report on Form 8-K on November 3, 2009. The filing announces the release of financial results for the third quarter ended September 30, 2009. The report includes a press release (Exhibit 99.1) and a presentation (Exhibit 99.2) furnished but not filed with the SEC.
Key Financial Metrics
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 and presentation, which are referenced but not included in the body of this 8-K document.
Material Changes and Non-GAAP Adjustments
Management disclosed the use of non-GAAP financial measures to facilitate the understanding of ongoing operating performance. Key adjustments include:
- Exclusion of Litigation Settlement Charges: Pro forma adjustments were made to total operating expenses, net income, and earnings per share for the three and nine months ended September 30, 2009, and the comparable periods in 2008, to exclude litigation settlement charges.
- Exclusion of Customer Agreement Gain: Pro forma adjustments were made to other income, net income, and earnings per share for the nine months ended September 30, 2008, to exclude a gain from the termination of a customer business agreement deemed not representative of ongoing performance.
- Effective Tax Rate: Pro forma adjustments were made to the effective tax rate for the three and nine months ended September 30, 2008, primarily to exclude income tax benefits associated with the litigation settlement charge.
Guidance, Outlook, and Risks
Mastercard scheduled a conference call on November 3, 2009, to discuss the third-quarter financial results. The filing notes that management uses these non-GAAP measures for internal planning, forecasting, and performance-based compensation calculations. No specific forward-looking guidance or new risk factors were detailed in the text of this 8-K; investors are directed to the attached exhibits for further details.
Investor Verification Checklist
- Review the attached press release (Exhibit 99.1) for specific GAAP and non-GAAP financial figures for Q3 2009.
- Verify the reconciliation of non-GAAP measures to GAAP measures as required by Regulation S-K.
- Examine the litigation settlement charges and the customer business agreement gain to understand their impact on reported earnings.
- Listen to the conference call or review the presentation (Exhibit 99.2) for management's commentary on the results and outlook.