PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard Incorporated (NYSE: MA) today announced financial results for the fourth quarter of 2011. Excluding a special item, the company reported net income of $514 million, up 23.7%, and earnings per diluted share of $4.03, up 27.5%, in each case versus the year-ago period. Including the special item, a $495 million after-tax charge related to the U.S. merchant litigations, the company reported net income of $19 million, or $0.15 per diluted share. The company's total operating expenses, operating 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 fourth quarter of 2011 was $1.7 billion, a 20.2% increase versus the same period in 2010. On a constant currency basis, net revenue increased 20.8% compared to the same period in 2010. Net revenue growth was driven by the impact of the following:
- An increase in cross-border volumes of 17.5%;
- A 16.3% increase in gross dollar volume on a local currency basis, to $863 billion; and
- An increase in processed transactions of 23.2%, to 7.7 billion.
These factors were partially offset by an increase in rebates and incentives primarily due to new and renewed agreements and increased volumes.
Worldwide purchase volume during the quarter was up 15.2% on a local currency basis versus the fourth quarter of 2010, to $648 billion. As of December 31, 2011, the company’s customers had issued 1.8 billion MasterCard and Maestro-branded cards.
“We are pleased with our strong fourth quarter results as we are seeing sustained momentum driven by new deals and the ongoing shift away from paper-based payments,” said Ajay Banga, MasterCard president and chief executive officer. “For the full year, despite ongoing economic uncertainties, we posted strong performance ahead of our long-term objectives.
“Solid execution at the local level continued to result in new business wins in 2011, with a recent agreement from KeyBank that includes PIN debit and our IPS platform, as well as credit and debit deals with nearly 150 U.S.-based independent banks and credit unions. Additionally, we continue to lay the foundation for growth through strategic partnerships with Western Union, Telefónica and Intel to provide consumers in developed and emerging markets with access to more efficient and safer forms of electronic payments,” Banga concluded.
Based on progress to date in mediation related to the U.S. merchant litigations, the company recorded a $770 million pre-tax charge, or $495 million on an after-tax basis, in the fourth quarter of 2011. This special item represents the company’s financial portion of a potential settlement in these cases.
Excluding the special item, total operating expenses increased 11.5%, to $968 million, during the fourth quarter of 2011 compared to the same period in 2010. Currency fluctuations had a minimal impact on operating expense growth. The increase in total operating expenses was driven by:
- A 14.3% increase in general and administrative expenses, primarily due to higher personnel costs in support of strategic growth initiatives and the inclusion of expenses related to acquisitions.
- A 4.8% increase in advertising and marketing expenses to $319 million, primarily due to support of strategic initiatives and sponsorship activities.
Including the special item, total operating expenses for the fourth quarter of 2011 increased 100.1% versus the year-ago period, to $1.7 billion.
Excluding the special item, operating income for the fourth quarter of 2011 increased 33.5% over the year-ago period and the company delivered an operating margin of 44.0%.
In the fourth quarter of 2011, excluding acquisitions, net revenue grew approximately 18%; excluding acquisitions and the special item, operating expenses grew approximately 8%.
MasterCard reported other expense of $2 million in the fourth quarter of 2011 versus other income of $13 million in the fourth quarter of 2010. The change was primarily driven by a decrease in interest income, lower realized gains on sales of investments and equity losses in joint ventures versus the year-ago period.
Excluding the special item, MasterCard's effective tax rate was 32.3% in the fourth quarter of 2011, versus a rate of 28.7% in the comparable period in 2010. The increase was primarily due to a benefit recorded in connection with the repatriation of foreign earnings in the fourth quarter of 2010, partially offset by a more favorable geographic mix of earnings in the current period. Including the special item, the effective tax rate for the fourth quarter of 2011 was a 251.6% benefit, as the charge related to the U.S. merchant litigations is tax deductible in the U.S. and thus impacted the geographic mix of pre-tax income.
During the fourth quarter of 2011, MasterCard repurchased 84,300 shares at a cost of approximately $30 million. Quarter-to-date through January 27, the company repurchased an additional 304,600 shares of class A common stock at a cost of approximately $106 million, with $746 million remaining under the current repurchase program authorization.
Full-Year 2011 Results
For the year ended December 31, 2011, MasterCard reported net income of $2.4 billion, or $18.70 per diluted share, excluding a special item, and net income of $1.9 billion, or $14.85 per diluted share, including the special item. The special item represents the charge related to the U.S. merchant litigations taken in the fourth quarter of 2011.
Net revenue for full-year 2011 was $6.7 billion, an increase of 21.2% versus 2010. On a constant currency basis, net revenue increased 19.5%. Cross-border volume growth of 18.7%, gross dollar volume growth of 16.1% and processed transaction growth of 18.3%, contributed to the net revenue growth in the full-year period. These increases were partially offset by an increase in rebates and incentives due to increased volumes and new and renewed customer agreements.
Excluding the special item, total operating expenses increased 16.0%, to $3.2 billion, for 2011 compared to 2010, primarily due to higher personnel costs related to strategic initiatives and the inclusion of expenses related to acquisitions. Excluding currency fluctuations, total operating expenses increased 14.5%. Including the special item, operating expenses in 2011 increased 43.6%, to $4.0 billion, versus 2010.
For the full-year 2011, excluding acquisitions, net revenue grew approximately 19%; excluding acquisitions and the special item, operating expenses grew approximately 10%.
Excluding the special item, operating income increased 26.6% for 2011 versus 2010 delivering an operating margin of 51.9 % for the full-year period. Including the special item, the operating margin was 40.4% for full-year 2011.
Total other income was $33 million for full-year 2011 versus total other income of $5 million in 2010. This was primarily driven by a decrease in interest expense due to lower interest accretion related to previous litigation settlements.
MasterCard’s effective tax rate, excluding the special item, was 31.8% for full-year 2011, versus a rate of 33.0% for full-year 2010. Including the special item, the effective tax rate was 30.6% for full-year 2011. The decrease in the 2011 effective tax rate was primarily due to a more favorable geographic mix of earnings, including the tax benefit related to the special item, and the recognition of discrete adjustments in 2011 and 2010.
For full-year 2011, MasterCard repurchased 4.4 million shares at a cost of approximately $1.1 billion.
Fourth-Quarter and Full-Year Financial Results Conference Call Details
At 9:00 a.m. ET today, the company will host a conference call to discuss its fourth-quarter and full-year financial results.
The dial-in information for this call is 866-362-4666 (within the U.S.) and 617-597-5313 (outside the U.S.) and the passcode is 24950634. A replay of the call will be available for one week following the meeting. The replay can be accessed by dialing 888-286-8010 (within the U.S.) and 617-801-6888 (outside the U.S.) and using passcode 66051474.
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 mastercard.com.
About MasterCard Incorporated
MasterCard (NYSE: MA) is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Learn more at mastercard.com.
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, statements related to sustained momentum in the business, the continuing shift away from paper-based payments, and the Company’s ability to achieve growth through the foundation set by its strategic partnerships.
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, 2010, the company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that have been filed with the SEC during 2011 and 2012, 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.
|
MASTERCARD INCORPORATED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) |
|||||||||||||||||||||
| Three Months Ended |
Twelve Months Ended |
||||||||||||||||||||
| December 31, |
December 31, |
||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||||||
| Revenues, net | $ | 1,728 | $ | 1,438 | $ | 6,714 | $ | 5,539 | |||||||||||||
| Operating Expenses | |||||||||||||||||||||
| General and administrative | 597 | 522 | 2,196 | 1,857 | |||||||||||||||||
| Advertising and marketing | 319 | 305 | 841 | 782 | |||||||||||||||||
| Provision for litigation settlement | 770 | - | 770 | - | |||||||||||||||||
| Depreciation and amortization | 52 | 42 | 194 | 148 | |||||||||||||||||
| Total operating expenses | 1,738 | 869 | 4,001 | 2,787 | |||||||||||||||||
| Operating income (loss) | (10 | ) | 569 | 2,713 | 2,752 | ||||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||
| Investment income | 12 | 23 | 52 | 57 | |||||||||||||||||
| Interest expense | (7 | ) | (9 | ) | (25 | ) | (52 | ) | |||||||||||||
| Other income (expense), net | (7 | ) | (1 | ) | 6 | - | |||||||||||||||
| Total other income (expense) | (2 | ) | 13 | 33 | 5 | ||||||||||||||||
| Income (loss) before income taxes | (12 | ) | 582 | 2,746 | 2,757 | ||||||||||||||||
| Income tax expense (benefit) | (30 | ) | 167 | 842 | 910 | ||||||||||||||||
| Net income | 18 | 415 | 1,904 | 1,847 | |||||||||||||||||
| Loss (income) attributable to non-controlling interests | 1 | - | 2 | (1 | ) | ||||||||||||||||
| Net Income Attributable to MasterCard | $ | 19 | $ | 415 | $ | 1,906 | $ | 1,846 | |||||||||||||
| Basic Earnings per Share | $ | 0.15 | $ | 3.17 | $ | 14.90 | $ | 14.10 | |||||||||||||
| Basic Weighted Average Shares Outstanding | 127 | 131 | 128 | 131 | |||||||||||||||||
| Diluted Earnings per Share | $ | 0.15 | $ | 3.16 | $ | 14.85 | $ | 14.05 | |||||||||||||
| Diluted Weighted Average Shares Outstanding | 127 | 131 | 128 | 131 | |||||||||||||||||
|
MASTERCARD INCORPORATED CONSOLIDATED BALANCE SHEET (UNAUDITED) |
|||||||||||
| December 31, | December 31, | ||||||||||
| 2011 | 2010 | ||||||||||
| (in millions, except share data) | |||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 3,734 | $ | 3,067 | |||||||
| Investment securities available-for-sale, at fair value | 1,215 | 831 | |||||||||
| Investment securities held-to-maturity | - | 300 | |||||||||
| Accounts receivable | 808 | 650 | |||||||||
| Settlement due from customers | 601 | 497 | |||||||||
| Restricted security deposits held for customers | 636 | 493 | |||||||||
| Prepaid expenses and other current assets | 404 | 400 | |||||||||
| Deferred income taxes | 343 | 216 | |||||||||
| Total Current Assets | 7,741 | 6,454 | |||||||||
| Property, plant and equipment, at cost, net of accumulated depreciation | 449 | 439 | |||||||||
| Deferred income taxes | 88 | 5 | |||||||||
| Goodwill | 1,014 | 677 | |||||||||
| Other intangible assets, net of accumulated amortization | 665 | 530 | |||||||||
| Auction rate securities available-for-sale, at fair value | 70 | 106 | |||||||||
| Investment securities held-to-maturity | 36 | 36 | |||||||||
| Other assets | 630 | 590 | |||||||||
| Total Assets | $ | 10,693 | $ | 8,837 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Accounts payable | $ | 360 | $ | 272 | |||||||
| Settlement due to customers | 699 | 636 | |||||||||
| Restricted security deposits held for customers | 636 | 493 | |||||||||
| Obligations under litigation settlements | 4 | 298 | |||||||||
| Accrued litigation | 770 | - | |||||||||
| Accrued expenses | 1,610 | 1,315 | |||||||||
| Other current liabilities | 138 | 129 | |||||||||
| Total Current Liabilities | 4,217 | 3,143 | |||||||||
| Deferred income taxes | 113 | 74 | |||||||||
| Other liabilities | 486 | 404 | |||||||||
| Total Liabilities | 4,816 | 3,621 | |||||||||
| Commitments and Contingencies | |||||||||||
| Stockholders' Equity | |||||||||||
| Class A common stock, $0.0001 par value; authorized 3,000,000,000 shares, 132,771,392 and | |||||||||||
| 129,436,818 shares issued and 121,618,059 and 122,696,228 outstanding, respectively | - | - | |||||||||
| Class B common stock, $0.0001 par value; authorized 1,200,000,000 shares, 5,245,676 and | |||||||||||
| 8,202,380 issued and outstanding, respectively | - | - | |||||||||
| Additional paid-in-capital | 3,519 | 3,445 | |||||||||
| Class A treasury stock, at cost, 11,153,333 and 6,740,590 shares, respectively | (2,394 | ) | (1,250 | ) | |||||||
| Retained earnings | 4,745 | 2,915 | |||||||||
| Accumulated other comprehensive (loss) income: | |||||||||||
| Cumulative foreign currency translation adjustments | 30 | 105 | |||||||||
| Defined benefit pension and other postretirement plans, net of tax | (32 | ) | (12 | ) | |||||||
| Investment securities available-for-sale, net of tax | - | 2 | |||||||||
| Total accumulated other comprehensive (loss) income | (2 | ) | 95 | ||||||||
| Total Stockholders' Equity | 5,868 | 5,205 | |||||||||
| Non-controlling interests | 9 | 11 | |||||||||
| Total Equity | 5,877 | 5,216 | |||||||||
| Total Liabilities and Equity | $ | 10,693 | $ | 8,837 | |||||||
|
MASTERCARD INCORPORATED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) |
||||||||||||
|
Twelve Months Ended |
||||||||||||
| 2011 | 2010 | |||||||||||
| (in millions) | ||||||||||||
| Operating Activities | ||||||||||||
| Net income | $ | 1,904 | $ | 1,847 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 194 | 148 | ||||||||||
| Share based payments | 80 | 63 | ||||||||||
| Stock units withheld for taxes | (33 | ) | (126 | ) | ||||||||
| Tax benefit for share based compensation | (12 | ) | (85 | ) | ||||||||
| Accretion of imputed interest on litigation settlements | 5 | 35 | ||||||||||
| Deferred income taxes | (175 | ) | 248 | |||||||||
| Other | 14 | 6 | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (162 | ) | (115 | ) | ||||||||
| Income taxes receivable | - | (50 | ) | |||||||||
| Settlement due from customers | (114 | ) | (61 | ) | ||||||||
| Prepaid expenses | 27 | (48 | ) | |||||||||
| Obligations under litigation settlements | (303 | ) | (603 | ) | ||||||||
| Accrued litigation | 770 | - | ||||||||||
| Accounts payable | 67 | (19 | ) | |||||||||
| Settlement due to customers | 74 | 186 | ||||||||||
| Accrued expenses | 296 | 265 | ||||||||||
| Net change in other assets and liabilities | 52 | 6 | ||||||||||
| Net cash provided by operating activities | 2,684 | 1,697 | ||||||||||
| Investing Activities | ||||||||||||
| Acquisition of business, net of cash acquired | (460 | ) | (498 | ) | ||||||||
| Purchases of property, plant and equipment | (77 | ) | (61 | ) | ||||||||
| Capitalized software | (100 | ) | (90 | ) | ||||||||
| Purchases of investment securities available-for-sale | (899 | ) | (329 | ) | ||||||||
| Proceeds from sales of investment securities available-for-sale | 485 | 297 | ||||||||||
| Proceeds from maturities of investment securities available-for-sale | 63 | 110 | ||||||||||
| Proceeds from maturities of investment securities held-to-maturity | 300 | - | ||||||||||
| Investment in nonmarketable equity investments | (74 | ) | (67 | ) | ||||||||
| Other investing activities | 14 | (3 | ) | |||||||||
| Net cash used in investing activities | (748 | ) | (641 | ) | ||||||||
| Financing Activities | ||||||||||||
| Purchases of treasury stock | (1,148 | ) | - | |||||||||
| Payment of debt | (21 | ) | - | |||||||||
| Dividends paid | (77 | ) | (79 | ) | ||||||||
| Tax benefit for share based compensation | 12 | 85 | ||||||||||
| Investment in non-controlling interest | - | 2 | ||||||||||
| Cash proceeds from exercise of stock options | 19 | 11 | ||||||||||
| Net cash (used in) provided by financing activities | (1,215 | ) | 19 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (54 | ) | (63 | ) | ||||||||
| Net increase in cash and cash equivalents | 667 | 1,012 | ||||||||||
| Cash and cash equivalents - beginning of period | 3,067 | 2,055 | ||||||||||
| Cash and cash equivalents - end of period | $ | 3,734 | $ | 3,067 | ||||||||
|
MASTERCARD INCORPORATED OPERATING PERFORMANCE |
||||||||||||
| For the 3 Months ended December 31, 2011 | ||||||||||||
|
All MasterCard Credit, |
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.) |
| APMEA | $219 | 22.8% | 21.8% | $152 | 23.5% | 1,563 | $67 | 18.1% | 486 | 304 | 330 | 9.8 |
| Canada | 31 | 5.5% | 6.5% | 29 | 9.3% | 316 | 2 | -17.2% | 6 | 41 | 50 | 0.9 |
| Europe | 257 | 13.6% | 16.7% | 184 | 12.6% | 2,455 | 72 | 28.6% | 425 | 225 | 241 | 9.4 |
| Latin America |
74 |
12.6% | 20.4% |
45 |
24.8% |
777 |
29 |
14.3% |
180 |
108 |
131 |
4.7 |
|
Worldwide less |
581 | 16.3% | 18.4% | 410 | 17.4% | 5,111 | 172 | 20.8% | 1,096 | 678 | 751 | 24.7 |
| United States |
282 |
12.1% | 12.1% |
239 |
11.5% |
4,242 |
43 |
15.6% |
280 |
276 |
308 |
8.6 |
| Worldwide | 863 | 14.9% | 16.3% | 648 | 15.2% | 9,353 | 215 | 19.7% | 1,377 | 953 | 1,059 | 33.3 |
|
MasterCard Credit |
||||||||||||
|
Worldwide less |
405 | 14.9% | 16.4% | 346 | 16.8% | 3,967 | 59 | 13.9% | 260 | 469 | 530 | |
| United States |
143 |
6.6% | 6.6% |
134 |
6.3% |
1,616 |
9 |
10.7% |
8 |
146 |
176 |
|
| Worldwide | 549 | 12.6% | 13.6% | 481 | 13.7% | 5,584 | 68 | 13.5% | 268 | 615 | 705 | |
|
MasterCard Debit |
||||||||||||
|
Worldwide less |
176 | 19.6% | 23.4% | 63 | 21.0% | 1,144 | 113 | 24.8% | 836 | 209 | 221 | |
| United States |
139 |
18.4% | 18.4% |
104 |
19.0% |
2,625 |
35 |
16.9% |
272 |
129 |
133 |
|
| Worldwide | 315 | 19.1% | 21.2% | 168 | 19.7% | 3,769 | 147 | 22.9% | 1,109 | 338 | 354 | |
| For the 12 Months ended December 31, 2011 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All MasterCard Credit, |
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.) |
|
| APMEA | $805 | 30.1% | 22.9% | $549 | 24.9% | 5,734 | $256 | 18.9% | 1,803 | 304 | 330 | |
| Canada | 119 | 11.7% | 7.3% | 108 | 9.4% | 1,171 | 11 | -9.6% | 22 | 41 | 50 | |
| Europe | 979 | 21.0% | 16.7% | 709 | 13.3% | 9,027 | 271 | 26.6% | 1,573 | 225 | 241 | |
| Latin America |
277 |
25.5% | 22.6% |
164 |
27.2% |
2,750 |
113 |
16.4% |
683 |
108 |
131 |
|
|
Worldwide less |
2,180 | 24.2% | 19.1% | 1,529 | 18.3% | 18,682 | 651 | 20.9% | 4,081 | 678 | 751 | |
| United States |
1,069 |
10.4% | 10.4% |
901 |
11.0% |
15,917 |
168 |
7.8% |
1,080 |
276 |
308 |
|
| Worldwide | 3,249 | 19.3% | 16.1% | 2,430 | 15.5% | 34,599 | 819 | 17.9% | 5,161 | 953 | 1,059 | |
|
MasterCard Credit |
||||||||||||
|
Worldwide less |
1,521 | 21.2% | 16.0% | 1,296 | 17.3% | 14,614 | 225 | 9.3% | 972 | 469 | 530 | |
| United States |
543 |
6.0% | 6.0% |
508 |
6.1% |
6,065 |
35 |
5.2% |
31 |
146 |
176 |
|
| Worldwide | 2,064 | 16.8% | 13.2% | 1,804 | 13.9% | 20,680 | 260 | 8.7% | 1,003 | 615 | 705 | |
|
MasterCard Debit |
||||||||||||
|
Worldwide less |
659 | 31.8% | 26.8% | 233 | 24.7% | 4,068 | 426 | 28.0% | 3,108 | 209 | 221 | |
| United States |
526 |
15.4% | 15.4% |
393 |
17.9% |
9,852 |
133 |
8.5% |
1,050 |
129 |
133 |
|
| Worldwide | 1,185 | 24.0% | 21.5% | 626 | 20.4% | 13,920 | 559 | 22.7% | 4,158 | 338 | 354 | |
| For the 3 Months ended December 31, 2010 | ||||||||||||
|
All MasterCard Credit, |
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.) |
|
| APMEA | $178 | 25.9% | 19.2% | $121 | 19.5% | 1,323 | $58 | 18.6% | 410 | 269 | 294 | |
| Canada | 29 | 11.9% | 7.1% | 26 | 6.4% | 291 | 3 | 14.3% | 5 | 40 | 49 | |
| Europe | 226 | 8.6% | 14.3% | 168 | 13.1% | 2,132 | 58 | 18.0% | 340 | 199 | 214 | |
| Latin America |
66 |
21.7% | 19.8% |
38 |
25.0% |
627 |
28 |
13.3% |
172 |
100 |
123 |
|
|
Worldwide less |
500 | 16.2% | 16.3% | 353 | 15.9% | 4,372 | 147 | 17.2% | 928 | 609 | 679 | |
| United States |
252 |
1.9% | 1.9% |
214 |
3.4% |
3,775 |
38 |
-6.0% |
244 |
263 |
294 |
|
| Worldwide | 752 | 11.0% | 11.0% | 568 | 10.8% | 8,147 | 184 | 11.6% | 1,172 | 871 | 972 | |
|
MasterCard Credit |
||||||||||||
|
Worldwide less |
353 | 11.5% | 11.7% | 300 | 13.4% | 3,455 | 53 | 2.6% | 234 | 447 | 507 | |
| United States |
134 |
2.4% | 2.4% |
127 |
3.2% |
1,547 |
8 |
-9.1% |
7 |
143 |
171 |
|
| Worldwide | 487 | 8.8% | 9.0% | 427 | 10.2% | 5,001 | 61 | 0.9% | 241 | 590 | 678 | |
|
MasterCard Debit |
||||||||||||
|
Worldwide less |
147 | 29.0% | 28.9% | 53 | 31.7% | 917 | 94 | 27.4% | 694 | 162 | 172 | |
| United States |
117 |
1.4% | 1.4% |
88 |
3.7% |
2,228 |
30 |
-5.1% |
237 |
119 |
123 |
|
| Worldwide | 264 | 15.1% | 15.0% | 141 | 12.7% | 3,145 | 124 | 17.7% | 931 | 281 | 295 | |
| For the 12 Months ended December 31, 2010 | ||||||||||||
|
All MasterCard Credit, |
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.) |
|
| APMEA | $619 | 27.3% | 18.8% | $411 | 17.1% | 4,848 | $207 | 22.2% | 1,507 | 269 | 294 | |
| Canada | 107 | 14.9% | 4.2% | 95 | 5.3% | 1,078 | 12 | -3.2% | 20 | 40 | 49 | |
| Europe | 809 | 10.9% | 13.6% | 604 | 13.2% | 7,867 | 205 | 14.6% | 1,272 | 199 | 214 | |
| Latin America |
220 |
23.0% | 17.3% |
125 |
22.4% |
2,208 |
95 |
11.3% |
641 |
100 |
123 |
|
|
Worldwide less |
1,755 | 17.9% | 15.2% | 1,236 | 14.7% | 16,000 | 520 | 16.4% | 3,440 | 609 | 679 | |
| United States |
968 |
-0.4% | -0.4% |
812 |
1.1% |
14,317 |
156 |
-7.4% |
1,003 |
263 |
294 |
|
| Worldwide | 2,723 | 10.7% | 9.1% | 2,048 | 8.9% | 30,317 | 676 | 9.9% | 4,443 | 871 | 972 | |
|
MasterCard Credit |
||||||||||||
|
Worldwide less |
1,255 | 12.9% | 10.1% | 1,058 | 12.3% | 12,808 | 197 | -0.6% | 919 | 447 | 507 | |
| United States |
512 |
-1.9% | -1.9% |
479 |
0.5% |
5,853 |
33 |
-26.7% |
29 |
143 |
171 |
|
| Worldwide | 1,767 | 8.2% | 6.3% | 1,537 | 8.3% | 18,661 | 230 | -5.4% | 949 | 590 | 678 | |
|
MasterCard Debit |
||||||||||||
|
Worldwide less |
500 | 32.7% | 30.4% | 178 | 31.2% | 3,192 | 323 | 29.9% | 2,521 | 162 | 172 | |
| United States |
456 |
1.3% | 1.3% |
333 |
1.9% |
8,464 |
123 |
-0.2% |
974 |
119 |
123 |
|
| Worldwide | 956 | 15.6% | 14.7% | 510 | 10.5% | 11,656 | 446 | 19.9% | 3,495 | 281 | 295 | |
| APMEA = Asia Pacific / Middle East / Africa |
| Note that the figures in the preceding tables may not sum due to rounding; growth represents change from the comparable year-ago period |
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.
|
GAAP Reconciliations ($ millions, except per share data) |
||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||
| December 31, 2011 | December 31, 2010 | |||||||||||||||
| Special | ||||||||||||||||
| Actual | Item | Non -GAAP | Actual | |||||||||||||
|
Provision for litigation settlement |
$ | 770 | $ | (770) | a | $ | - | $ | - | |||||||
| Total operating expenses | 1,738 | (770) | 968 | 869 | ||||||||||||
| Operating income (loss) | (10) | 770 | 760 | 569 | ||||||||||||
| Operating Margin | (0.6%) | 44.0% | 39.6% | |||||||||||||
| Income (loss) before income taxes | (12) | 770 | 758 | 582 | ||||||||||||
| Income tax expense (benefit) | (30) | 275 | b | 245 | 167 | |||||||||||
| Net Income Attributable to MasterCard | 19 | 495 | 514 | 415 | ||||||||||||
| Basic Net Income per Share | $ | 0.15 | $ | 3.90 | $ | 4.05 | $ | 3.17 | ||||||||
| Diluted Net Income per Share | $ | 0.15 | $ | 3.88 | $ | 4.03 | $ | 3.16 | ||||||||
| For the Year Ended |
For the Year Ended |
|||||||||||||||
| December 31, 2011 |
December 31, 2010 |
|||||||||||||||
| Special | ||||||||||||||||
| Actual | Item | Non -GAAP | Actual | |||||||||||||
|
Provision for litigation settlement |
$ | 770 | $ | (770) | a | $ | - | $ | - | |||||||
| Total operating expenses | 4,001 | (770) | 3,231 | 2,787 | ||||||||||||
| Operating income | 2,713 | 770 | 3,483 | 2,752 | ||||||||||||
| Operating Margin | 40.4% | 51.9% | 49.7% | |||||||||||||
| Income before income taxes | 2,746 | 770 | 3,516 | 2,757 | ||||||||||||
| Income tax expense | 842 | 275 | b | 1,117 | 910 | |||||||||||
| Net Income Attributable to MasterCard | 1,906 | 495 | 2,401 | 1,846 | ||||||||||||
| Basic Net Income per Share | $ | 14.90 | $ | 3.87 | $ | 18.77 | $ | 14.10 | ||||||||
| Diluted Net Income per Share | $ | 14.85 | $ | 3.85 | $ | 18.70 | $ | 14.05 | ||||||||
a- Provision for U.S. merchant litigation settlement
b- Tax effect of provision for litigation settlement
Note that the figures in the preceding tables may not sum due to rounding
|
Reconciliation to Effective Tax Rate ($ millions) |
||||||||||||
| Provision for | ||||||||||||
| GAAP | Litigation | Non-GAAP | ||||||||||
| Actual | Settlement | Adjusted | ||||||||||
| Three months ended December 31, 2011: | ||||||||||||
| Income (loss) before income taxes | $ | (12) | $ | 770 | $ | 758 | ||||||
| Income tax expense (benefit) | (30) | 275 | 245 | |||||||||
| Net income attributable to MasterCard | 19 | 495 | 514 | |||||||||
| Effective Tax Rate | 251.6% |
32.3% |
||||||||||
| Twelve months ended December 31, 2011: | ||||||||||||
|
Income before income taxes |
$ | 2,746 | $ | 770 | $ | 3,516 | ||||||
| Income tax expense | 842 | 275 | 1,117 | |||||||||
| Net income attributable to MasterCard | 1,906 | 495 | 2,401 | |||||||||
| Effective Tax Rate | 30.6% | 31.8% | ||||||||||
Note that the figures in the preceding tables may not sum / calculate due to rounding