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.
Frequently Asked Questions
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.
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.
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.
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.