Mastercard Inc. Form 8-K Summary
Business Context and Reporting Period
Mastercard Incorporated filed this Current Report on Form 8-K on July 30, 2009, to announce financial results for the second quarter ended June 30, 2009. The filing 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
Mastercard disclosed the use of non-GAAP financial measures to facilitate comparison of operating performance between periods. Key adjustments include:
- Q2 2009 and Q2 2008: Exclusion of a litigation settlement charge from total operating expenses, net income, and earnings per share.
- First Half 2008: Exclusion of a gain from the termination of a customer business agreement from other income, net income, and earnings per share.
- Tax Rate: Pro forma effective tax rate adjustments excluding income tax benefits associated with the litigation settlement charge in 2008.
Guidance, Outlook, and Management Commentary
Management stated that these non-GAAP measures are used for internal planning, forecasting, and performance-based compensation calculations. The company scheduled a conference call on July 30, 2009, to discuss the second-quarter results. The filing does not contain specific forward-looking guidance or risk factors beyond the standard disclosure that non-GAAP measures should not be viewed in isolation from GAAP results.
Investor Verification Checklist
- Review the attached press release (Exhibit 99.1) for specific GAAP and non-GAAP revenue, net income, and EPS figures.
- Verify the exact dollar amount of the litigation settlement charge excluded from Q2 2009 and Q2 2008 results.
- Confirm the amount of the gain from the terminated customer business agreement excluded from the first half of 2008.
- Examine the reconciliation tables in the press release to understand the impact of these exclusions on the effective tax rate.