8-KEarnings & ResultsRegulation FDExhibits & Filings

Mastercard Inc 8-K Report, Financial Results (Nov 1, 2006)

Filed November 1, 2006For Securities:MA

Summary

This 8-K filing by Mastercard Inc. (MA) on November 1, 2006, primarily serves to announce the company's financial results for the third quarter ended September 30, 2006. The filing includes a press release and a presentation for an upcoming conference call, both of which are furnished but not officially filed with the SEC. A key aspect of the disclosure is the presentation of non-GAAP financial measures, which management believes provide a clearer understanding of operating performance and facilitate period-over-period comparisons by excluding certain one-time or non-recurring items.

Key Highlights

  • 1Mastercard Inc. announced its third quarter 2006 financial results on November 1, 2006.
  • 2The company is presenting non-GAAP financial measures to aid investor understanding of operating performance.
  • 3Excluded from non-GAAP measures are charges related to litigation settlements.
  • 4A one-time adjustment for a change in accounting methodology for cash-based executive incentive plans is also excluded.
  • 5Interest income from IPO proceeds used for share redemption is excluded from certain non-GAAP calculations.
  • 6A non-cash charge related to the donation of shares to The MasterCard Foundation is excluded from specific non-GAAP figures.
  • 7A conference call to discuss Q3 2006 results is scheduled for November 1, 2006, with a presentation provided as an exhibit.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce Mastercard's financial results for the third quarter ended September 30, 2006, and to provide supporting documents such as the press release and conference call presentation.

Mastercard is presenting non-GAAP financial information because management believes it offers a more meaningful comparison of the company's operating performance between periods by excluding certain items such as litigation settlement charges, accounting methodology changes, IPO-related interest income, and a non-cash stock donation to The MasterCard Foundation.

Detailed financial results are available in the press release (Exhibit 99.1) and the presentation (Exhibit 99.2) attached to this 8-K filing. These documents are furnished, not filed, and are intended to supplement the GAAP-compliant financial information.

The non-GAAP measures exclude charges related to litigation settlements, a one-time accounting methodology change for executive incentive plans, interest income on IPO proceeds used for share redemption, and a non-cash charge from the donation of shares to The MasterCard Foundation.