What are the main reasons Mastercard is presenting non-GAAP financial results?

Mastercard is presenting non-GAAP financial results to provide investors with a clearer view of its ongoing operational performance. By excluding significant one-time charges, such as the U.S. Employee Pension Plan Settlement Charge and the U.K. Merchant Litigation Settlement Provision, management aims to facilitate a better understanding of the company's core business trends and enable more meaningful comparisons of results between different periods.

What specific one-time charges are being excluded from GAAP results?

The primary one-time charges excluded from the non-GAAP financial measures in this filing are a settlement charge related to the termination of Mastercard's U.S. defined benefit pension plan (U.S. Employee Pension Plan Settlement Charge) and a charge related to a U.K. merchant litigation settlement (U.K. Merchant Litigation Settlement Provision).

Why does Mastercard report currency-adjusted growth rates?

Mastercard reports currency-adjusted growth rates as a non-GAAP measure because foreign currency fluctuations can significantly impact reported financial results. By adjusting for these currency effects, management believes it provides investors with a more relevant insight into the underlying growth of its business operations, independent of exchange rate volatility.

Where can I find the reconciliation between non-GAAP and GAAP financial measures?

The reconciliation of Mastercard's non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the press release (Exhibit 99.1) and the investor presentation (Exhibit 99.2) attached to this 8-K filing. These documents are furnished, not filed, with the SEC.

MA 8-K: Earnings & Results & Regulation FD

Summary

Mastercard Incorporated (MA) filed an 8-K on January 29, 2016, to report its fourth quarter and full year 2015 financial results. The filing highlights that the company is providing non-GAAP financial measures to offer a clearer view of ongoing operational performance, excluding significant one-time charges. These adjustments include a settlement charge related to the termination of its U.S. defined benefit pension plan and a provision for a U.K. merchant litigation settlement. Investors are encouraged to review these non-GAAP figures, which are presented to facilitate a better understanding of underlying business trends and comparisons across periods. The company also emphasizes its use of currency-adjusted growth rates, another non-GAAP measure, to mitigate the impact of foreign currency fluctuations. A reconciliation of these non-GAAP measures to their GAAP equivalents is available in the accompanying press release and presentation, which are furnished as exhibits.

Key Highlights

1Mastercard reported its Q4 and full-year 2015 financial results via an 8-K filing on January 29, 2016.
2The company is presenting non-GAAP financial measures to reflect ongoing operational performance.
3Excluded items for non-GAAP reporting include a U.S. Employee Pension Plan Settlement Charge and a U.K. Merchant Litigation Settlement Provision.
4These excluded items are considered significant, one-time charges by management.
5Non-GAAP measures are used for evaluating ongoing operations, internal planning, forecasting, and performance-based compensation.
6Currency-adjusted growth rates are also presented as a non-GAAP measure to account for foreign currency fluctuations.
7Reconciliations of non-GAAP to GAAP measures are provided in the furnished press release and presentation.

Mastercard Inc 8-K Report, Financial Results (Jan 29, 2016)

Summary

Key Highlights

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