Summary
Mastercard Inc. filed an 8-K report on February 2, 2012, to announce its financial results for the fourth quarter and full year ended December 31, 2011. The filing primarily serves to provide investors with access to the company's earnings press release and investor presentation, which were shared on the same date and are attached as exhibits. Key information for investors revolves around the reported financial performance and the methodologies used to present these results. Mastercard highlighted its use of non-GAAP financial measures, specifically excluding provisions for the financial portion of potential litigation settlements from operating expenses, operating income, net income, and earnings per share. The company also adjusted its effective tax rate on a pro forma basis to exclude income tax benefits related to these litigation provisions. Mastercard's management asserts that these adjusted measures provide a clearer view of ongoing operational performance and facilitate better period-over-period comparisons.
Key Highlights
- 1Mastercard released its Q4 and full-year 2011 financial results on February 2, 2012.
- 2The 8-K filing includes the company's earnings press release (Exhibit 99.1) and an investor presentation (Exhibit 99.2).
- 3The company is reporting results on a pro forma basis, excluding provisions for potential litigation settlements.
- 4Key financial metrics like operating expenses, operating income, net income, and EPS are presented excluding litigation settlement provisions.
- 5The effective tax rate is also presented on a pro forma basis, excluding related income tax benefits.
- 6Management uses these non-GAAP measures to evaluate ongoing operational performance and for internal planning.
- 7Reconciliations between GAAP and non-GAAP measures are provided in the earnings release.