Why is Mastercard using non-GAAP financial measures?

Mastercard is using non-GAAP financial measures to provide investors with a clearer view of its core operating performance. Management believes these measures are useful because they exclude special items, one-time charges, or non-recurring events that might otherwise distort the comparison of results between different periods.

What specific items are being excluded in the non-GAAP reporting?

The excluded items include reserves set aside for litigation settlements, a one-time adjustment for a change in accounting methodology for executive incentive plans, interest income earned on IPO proceeds used for share redemption, and a non-cash charge related to the donation of Class A common stock to The MasterCard Foundation.

Where can investors find a comparison between GAAP and non-GAAP results?

Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures are included within the press release that is attached as an exhibit to this 8-K filing.

MA 8-K: Earnings & Results & Regulation FD

Q: What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to announce and provide access to Mastercard's financial results for the fourth quarter and full year ended December 31, 2006, via an attached press release and a presentation for an investor conference call.

Summary

Mastercard Inc. filed an 8-K on February 9, 2007, to report its financial results for the fourth quarter and full year ended December 31, 2006. The filing includes a press release detailing these results and a presentation for an upcoming investor conference call. A key aspect of the disclosure is the use of non-GAAP financial measures, which management believes provide a clearer understanding of the company's operational performance by excluding certain one-time or non-recurring items.

Key Highlights

1Mastercard announced its Q4 and full-year 2006 financial results on February 9, 2007.
2The company is providing financial information that excludes certain charges and income to facilitate a better understanding of operating performance.
3Excluded items include reserves for litigation settlements, a one-time accounting methodology change, interest income from IPO proceeds used for share redemption, and a non-cash charge related to a donation to The MasterCard Foundation.
4Reconciliations between non-GAAP and GAAP measures are provided in the accompanying press release.
5A conference call was scheduled for February 9, 2007, to discuss these financial results.
6A presentation used during the conference call is attached as an exhibit.
7The filing primarily serves to furnish the press release and conference call presentation to the SEC.

Mastercard Inc 8-K Report, Financial Results (Feb 9, 2007)

Summary

Key Highlights

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