Business Context and Reporting Period
Company: MasterCard Incorporated
Filing Type: Form 8-K (Current Report)
Date of Report: October 31, 2013
Reporting Period: Third quarter ended September 30, 2013
Context: This filing announces the issuance of a press release and presentation regarding financial results for the third quarter of 2013. The filing serves to disclose these results under Item 2.02 and Item 7.01 (Regulation FD).
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: The provided text does not contain 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 within this document text.
Non-GAAP Measures Discussed: The filing notes that the attached press release includes non-GAAP financial measures adjusted for:
- Exclusion of an incremental charge related to U.S. merchant litigations accrued during the nine months ended September 30, 2012.
- Exclusion of income tax benefits associated with the aforementioned litigation charge.
- Growth rates adjusted for foreign currency fluctuations.
Material Changes
The filing text does not provide specific data on material changes in financial performance compared to the prior period. It references the use of non-GAAP measures to facilitate meaningful comparisons between periods by excluding specific litigation-related items from the prior year's results.
Guidance, Outlook, and Risks
Management Commentary: Management utilizes non-GAAP measures to evaluate ongoing operations, internal planning, forecasting, and performance-based compensation. They believe these measures provide a clearer understanding of operating performance by separating material litigation settlements from ongoing operations.
Conference Call: A conference call to discuss the third-quarter results was scheduled for October 31, 2013.
Risks and Contingencies: The filing references "U.S. merchant litigations" as a material contingency that impacted prior period results and necessitated the use of pro forma adjustments for comparative analysis.
Investor Verification Checklist
- Review the attached Press Release (Exhibit 99.1) for specific GAAP and non-GAAP revenue, net income, and earnings per share figures.
- Examine the reconciliation tables in the press release to understand the exact dollar impact of the U.S. merchant litigation charges excluded from non-GAAP metrics.
- Verify the specific currency-adjusted growth rates provided in the presentation (Exhibit 99.2).
- Confirm the details of the U.S. merchant litigation status and any potential future accruals not reflected in the current quarter's GAAP results.