8-KEarnings & ResultsExhibits & Filings

Mastercard Inc 8-K Report, Financial Results (Jul 28, 2016)

Filed July 28, 2016For Securities:MA

Summary

MasterCard Incorporated filed an 8-K on July 28, 2016, to report its second-quarter 2016 financial results. The filing highlights the company's financial performance and provides context for its earnings through the disclosure of non-GAAP financial measures. These non-GAAP measures are presented to offer a clearer view of ongoing operational performance by excluding significant, non-recurring items such as provisions related to UK merchant litigations and settlements. Investors should note that the company is providing these adjusted figures to facilitate a better understanding of core business trends and to allow for more meaningful period-over-period comparisons. The press release, attached as an exhibit, offers reconciliations between GAAP and non-GAAP figures, which are crucial for a comprehensive analysis of MasterCard's financial health and operational efficiency.

Key Highlights

  • 1MasterCard announced its second-quarter 2016 financial results via a press release filed on July 28, 2016.
  • 2The company is providing non-GAAP financial measures to supplement its GAAP reporting.
  • 3Key non-GAAP adjustments include provisions related to UK merchant litigation and settlements from both Q2 2016 and Q2 2015, respectively.
  • 4Management uses these non-GAAP measures to assess ongoing operational performance and facilitate period-over-period comparisons.
  • 5Currency-neutral growth rates are also presented as a non-GAAP measure to illustrate performance independent of foreign exchange fluctuations.
  • 6The press release contains reconciliations between GAAP and non-GAAP financial measures.
  • 7The disclosed information is furnished, not filed, and should be reviewed in conjunction with the company's official SEC filings.

Frequently Asked Questions

The main purpose of this 8-K filing is to report MasterCard's financial results for the second quarter of 2016, as announced in a press release issued on July 28, 2016.

MasterCard provides non-GAAP financial measures to offer investors a clearer view of its core operational performance. These measures exclude significant, non-recurring items like provisions for UK merchant litigation and settlements, allowing for more meaningful comparisons of results between periods.

The non-GAAP measures exclude provisions related to a UK merchant litigation judgment for Q2 2016 and a UK merchant settlement provision for Q2 2015. These are considered material litigation items that management monitors separately from ongoing operations.

Yes, currency fluctuations can impact reported results. MasterCard presents currency-neutral growth rates as a non-GAAP measure to help investors understand the underlying performance of the business without the effect of foreign exchange rate changes.