Summary
Mastercard Incorporated filed an 8-K report on October 31, 2013, to announce its third-quarter financial results for the period ended September 30, 2013. The filing primarily serves to attach the press release and presentation materials used for their earnings call. Key to investors is the disclosure of non-GAAP financial measures, which management uses for evaluating ongoing performance and making period-over-period comparisons. These non-GAAP adjustments exclude an incremental charge related to U.S. merchant litigations from operating expenses, operating income, net income, and earnings per diluted share. They also adjust the effective tax rate for related income tax benefits. The company believes these adjustments provide a clearer view of its operational performance and facilitate a better understanding of its business trends, particularly when assessing growth rates adjusted for currency fluctuations. Investors should refer to the accompanying press release and presentation for detailed reconciliations between GAAP and non-GAAP figures.
Key Highlights
- 1Mastercard announced its third-quarter 2013 financial results on October 31, 2013.
- 2The 8-K filing includes the press release (Exhibit 99.1) and presentation slides (Exhibit 99.2) related to the Q3 2013 earnings.
- 3The company is providing non-GAAP financial measures to offer a view of performance excluding certain items.
- 4Adjustments include the exclusion of an incremental charge related to U.S. merchant litigations from operating metrics.
- 5The effective tax rate is also presented on a pro forma basis, excluding tax benefits associated with the U.S. merchant litigations.
- 6Mastercard's management uses these non-GAAP measures for evaluating ongoing operations, internal planning, and performance-based compensation.
- 7Growth rates are presented adjusted for currency fluctuations to mitigate the impact of foreign exchange volatility.