What are the main financial results being reported?

MasterCard announced its financial results for the fourth quarter and full year ended December 31, 2014. The specific figures are detailed in the press release furnished as Exhibit 99.1.

Why is MasterCard presenting non-GAAP financial information?

MasterCard is presenting non-GAAP financial measures to exclude the impact of a significant net incremental charge related to U.S. merchant litigations. Management believes these adjustments, along with currency-adjusted figures, provide a better understanding of the company's ongoing operational performance and facilitate more meaningful comparisons between periods.

Are the non-GAAP figures more important than the GAAP figures?

The non-GAAP figures are presented to offer additional insight into operational trends, and management uses them for internal analysis and compensation. However, investors should always refer to the GAAP (Generally Accepted Accounting Principles) figures as the official financial results. The press release includes reconciliations to show how the non-GAAP measures are derived from the GAAP measures.

What is the significance of the currency-adjusted growth rates?

Currency-adjusted growth rates are provided because foreign currency fluctuations can significantly impact reported financial results. By adjusting for these fluctuations, MasterCard aims to present the underlying growth of its business operations more clearly, showing how performance would look without the volatility of exchange rates.

MA 8-K: Earnings & Results & Regulation FD

Summary

MasterCard Inc. (MA) filed an 8-K on January 30, 2015, to report its fourth quarter and full year 2014 financial results. The filing primarily serves as an announcement of these results, with a press release (Exhibit 99.1) attached detailing the performance. Investors should note that the company is presenting certain financial metrics on a non-GAAP basis, which adjust for a net incremental charge related to U.S. merchant litigations and also present growth rates adjusted for currency fluctuations. Management asserts these non-GAAP measures provide a clearer view of ongoing operational performance and facilitate period-over-period comparisons. A conference call to discuss these results was also scheduled for January 30, 2015, with a presentation (Exhibit 99.2) made available. The key takeaway for investors is the company's approach to presenting financial data, emphasizing performance excluding significant litigation charges and the impact of currency. While GAAP figures are the official accounting standard, MasterCard's management uses these adjusted figures for internal evaluation and compensation, suggesting they are important for understanding the underlying business trends and operational efficiency. Investors are advised to review the reconciliations provided in the press release to understand the adjustments made from GAAP to non-GAAP measures.

Key Highlights

1MasterCard announced its Q4 and full-year 2014 financial results via an 8-K filing on January 30, 2015.
2The company is providing non-GAAP financial measures, excluding a net incremental charge related to U.S. merchant litigations for comparability.
3Growth rates for operating expenses, operating income, net income, and EPS are presented on a pro forma basis, excluding litigation charges.
4Effective tax rate is also presented on a pro forma basis, excluding income tax benefits tied to the litigation settlement.
5Currency-adjusted growth rates are provided to highlight performance independent of foreign exchange fluctuations.
6Management uses these non-GAAP measures for evaluating ongoing operations, internal planning, forecasting, and performance-based compensation.
7A conference call and investor presentation were scheduled for January 30, 2015, to discuss the financial results.

Mastercard Inc 8-K Report, Financial Results (Jan 30, 2015)

Summary

Key Highlights

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