What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to officially report that Mastercard has issued an earnings release for its fourth quarter and full year 2018 results. The earnings release, attached as an exhibit, contains the detailed financial information.

Why does Mastercard present non-GAAP financial measures?

Mastercard presents non-GAAP financial measures (like adjusted net income and adjusted EPS) to provide investors with a view of the company's operational performance that excludes the impact of 'Special Items.' These items, such as litigation judgments and settlements related to interchange fees, are considered one-time or extraordinary and may distort the understanding of ongoing business performance.

What are 'Special Items' that Mastercard excludes?

'Special Items' are costs or gains that management believes are not reflective of the company's underlying operational performance. In this filing, they are specifically noted as litigation judgments and settlements related to interchange and other one-time items, along with their related tax impacts.

How are currency fluctuations handled in the reporting?

Mastercard provides growth rates adjusted for foreign currency impacts as a non-GAAP measure. This is done by recalculating prior period results using current period exchange rates, aiming to offer a clearer comparison of operational growth by removing the volatility of currency movements.

MA 8-K: Earnings & Results

Summary

Mastercard Inc. (MA) filed an 8-K on January 31, 2019, primarily to attach its earnings release for the fourth quarter and full year 2018, dated January 31, 2019. The release provides details on the company's financial results, including both GAAP and non-GAAP measures. Investors should note that Mastercard utilizes non-GAAP financial measures such as adjusted operating expenses, adjusted operating margin, adjusted net income, and adjusted diluted earnings per share to provide a clearer view of its underlying operational performance by excluding 'Special Items.' These special items primarily relate to litigation judgments and settlements, particularly concerning interchange fees, and other one-time events. The company's management uses these non-GAAP figures to assess ongoing operations, for internal planning, and in determining performance-based compensation. The earnings release also details growth rates adjusted for foreign currency impacts, which are presented to offer a more comparable view of performance across periods. All information furnished in the earnings release is considered non-filed and should be reviewed alongside the accompanying GAAP reconciliations provided within the release.

Key Highlights

1Mastercard filed an 8-K on January 31, 2019, referencing its Q4 and Full Year 2018 earnings release.
2The filing includes financial results for Q4 and Full Year 2018, presented with both GAAP and non-GAAP measures.
3Non-GAAP measures like adjusted operating expenses, adjusted operating margin, adjusted net income, and adjusted diluted EPS are used.
4These non-GAAP measures exclude 'Special Items,' which are primarily litigation judgments/settlements related to interchange fees and other one-time costs.
5Management uses non-GAAP figures to assess underlying operations, for planning, and performance-based compensation.
6Foreign currency-adjusted growth rates are also provided as a non-GAAP measure for better period-to-period comparison.
7The earnings release itself is furnished as Exhibit 99.1 and contains reconciliations of non-GAAP to GAAP measures.

Mastercard Inc 8-K Report, Financial Results (Jan 31, 2019)

Summary

Key Highlights

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