-
Fourth-quarter net income of $890 million, or $0.79 per diluted
share
-
Fourth-quarter net revenue increase of 4%, to $2.5 billion
-
Fourth-quarter gross dollar volume up 12% and purchase volume up
12%
PURCHASE, N.Y.--(BUSINESS WIRE)--
MasterCard Incorporated (NYSE:MA) today announced financial results for
the fourth quarter of 2015. The company reported net income of $890
million, an increase of 11%, or 18% after adjusting for currency, and
earnings per diluted share of $0.79, up 14%, or 22% when adjusted for
currency, versus the year-ago period. Acquisitions had a $0.03 dilutive
impact on earnings per diluted share in the quarter.
Net revenue for the fourth quarter of 2015 was $2.5 billion, a 4%
increase versus the same period in 2014. Adjusted for currency, net
revenue increased 9%. Net revenue growth was driven by the impact of the
following:
-
A 12% increase in gross dollar volume, on a local currency basis, to
$1.2 trillion;
-
An increase in processed transactions of 12%, to 13.0 billion; and
-
An increase in cross-border volumes of 12%.
These factors were partially offset by an increase in rebates and
incentives, primarily due to new and renewed agreements and increased
volumes. Acquisitions contributed 2 percentage points to total net
revenue growth.
Worldwide purchase volume during the quarter was up 12% on a local
currency basis versus the fourth quarter of 2014, to $883 billion. As of
December 31, 2015, the company’s customers had issued 2.3 billion
MasterCard and Maestro-branded cards.
“Despite a challenging economy, we were able to deliver solid results
for the quarter and the full year in 2015,” said Ajay Banga, president
and CEO, MasterCard. “Entering 2016, while uncertainty in the global
economy persists, the fundamentals of our business and our approach
remain unchanged. We continue to be laser focused on our strategy to
lead payment innovation in an increasingly digital world with solutions
such as MasterPass, while growing the use of electronic payments through
our products, partnerships and increased acceptance at the
point-of-sale.”
Total operating expenses increased 1%, or 4% when adjusted for currency,
to $1.4 billion during the fourth quarter of 2015 compared to the same
period in 2014. The increase was primarily due to continued investments
to support strategic initiatives, as well as the impact of acquisitions,
which contributed 4 percentage points of the FX-adjusted growth,
partially offset by ongoing cost management initiatives.
Operating income for the fourth quarter of 2015 increased 9%, or 17%
adjusted for currency, versus the year-ago period. The company delivered
an operating margin of 44.0%.
MasterCard reported other expense of $82 million in the fourth quarter
of 2015 versus $11 million in the fourth quarter of 2014. The change was
mainly driven by impairment charges on certain investments and by higher
interest expense related to the company’s Euro debt offering in November
2015, partially offset by tax reserve adjustments and investment gains.
MasterCard’s effective tax rate was 13.1% in the fourth quarter of 2015,
versus a rate of 20.3% in the comparable period in 2014. The decrease
was primarily due to the recognition of discrete tax benefits in the
fourth quarter of 2015 resulting from the impact of settlements with tax
authorities during the quarter.
During the fourth quarter of 2015, MasterCard repurchased approximately
8 million shares of Class A common stock at a cost of $793 million.
Quarter-to-date through January 22nd, the company
repurchased an additional 3.1 million shares at a cost of $283 million,
with $4.2 billion remaining under current repurchase program
authorizations.
Full-Year 2015 Results
For the full-year 2015, excluding special items, MasterCard reported net
income of $3.9 billion, an increase of 8%, or 15% after adjusting for
currency, versus the year-ago period and earnings per diluted share of
$3.43, up 11%, or 18% after adjusting for currency compared to the same
period in 2014. The special items included after-tax charges of $44
million related to a U.K. merchant litigation settlement and $50 million
related to the termination of the U.S. employee pension plan, recorded
in the second and third quarters of 2015, respectively. Including the
special items, net income was $3.8 billion and earnings per diluted
share was $3.35. Acquisitions had an $0.11 dilutive impact on earnings
per diluted share in the full-year period.
Net revenue for the full-year 2015 was $9.7 billion, an increase of 2%,
or 8% after adjusting for currency, versus the same period in 2014.
Gross dollar volume growth of 13%, transaction processing growth of 12%
and cross-border volume growth of 16% contributed to the net revenue
growth in the full-year period. These factors were partially offset by
an increase in rebates and incentives. Acquisitions contributed 2
percentage points to total net revenue growth.
Excluding the special items, total operating expenses increased 3%, or
6% after adjusting for currency, to $4.4 billion for the full-year 2015,
compared to the same period in 2014. The increase was primarily due to
continued investments to support strategic initiatives as well as the
impact of acquisitions, which contributed 6 percentage points of the
FX-adjusted growth, partially offset by ongoing cost management
initiatives and foreign exchange gains. Including the special items,
total operating expenses increased 6%, or 10% after adjusting for
currency, from the year-ago period.
Excluding the special items, operating income was $5.2 billion, an
increase of 2% for full-year 2015 versus the same period in 2014, or an
increase of 10% after adjusting for currency. The company delivered an
operating margin of 54.0%.
MasterCard reported other expense of $120 million for the full-year 2015
versus $27 million compared to the same period in 2014. The change was
mainly driven by impairment charges on certain investments and by higher
interest expense resulting from debt issued in 2014 and 2015.
MasterCard’s effective tax rate was 23.4% for full-year 2015 versus a
rate of 28.8% in the same period in 2014, excluding the special items.
The decrease was primarily due to the recognition of discrete tax
benefits in 2015 resulting from the impact of settlements with tax
authorities, the recognition of a U.S. foreign tax credit and a more
favorable geographic mix of taxable earnings.
Fourth-Quarter Financial Results Conference Call Details
At 9:00 a.m. ET today, the company will host a conference call to
discuss its fourth-quarter financial results.
The dial-in information for this call is 866-393-4306 (within the U.S.)
and 734-385-2616 (outside the U.S.), and the passcode is 12827852. A
replay of the call will be available for 30 days and can be accessed by
dialing 855-859-2056 (within the U.S.) and 404-537-3406 (outside the
U.S.), and using passcode 12827852.
This call can also be accessed through the Investor Relations section of
the company’s website at www.mastercard.com/investor.
Non-GAAP Financial Information
The company has presented certain financial data that are considered
non-GAAP financial measures that are reconciled to their most directly
comparable GAAP measures in the accompanying tables.
The presentation of growth rates adjusted for currency represent a
non-GAAP measure and are calculated by remeasuring the prior period’s
results using the current period’s exchange rates.
About MasterCard Incorporated
MasterCard (NYSE:MA), www.mastercard.com,
is a technology company in the global payments industry. We operate the
world’s fastest payments processing network, connecting consumers,
financial institutions, merchants, governments and businesses in more
than 210 countries and territories. MasterCard’s products and solutions
make everyday commerce activities - such as shopping, traveling, running
a business and managing finances - easier, more secure and more
efficient for everyone. Follow us on Twitter @MasterCardNews, join the
discussion on the Beyond the Transaction Blog and subscribe for the
latest news on the Engagement Bureau.
Forward-Looking Statements
Statements in this press release which are not historical facts,
including statements about MasterCard’s plans, strategies, beliefs and
expectations, are forward-looking and subject to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements speak only as of the date they are made.
Accordingly, except for the company’s ongoing obligations under the U.S.
federal securities laws, the company does not intend to update or
otherwise revise the forward-looking information to reflect actual
results of operations, changes in financial condition, changes in
estimates, expectations or assumptions, changes in general economic or
industry conditions or other circumstances arising and/or existing since
the preparation of this press release or to reflect the occurrence of
any unanticipated events. Such forward-looking statements include,
without limitation, statements related to our business performance and
the execution of our strategy to lead payment innovation and grow
electronic payments use.
Actual results may differ materially from such forward-looking
statements for a number of reasons, including those set forth in the
company’s filings with the Securities and Exchange Commission (SEC),
including the company’s Annual Report on Form 10-K for the year ended
December 31, 2014, and subsequent reports on Forms 10-Q and 8-K, as well
as reasons including difficulties, delays or the inability of the
company to achieve its strategic initiatives set forth above. Factors
other than those listed above could also cause the company’s results to
differ materially from expected results.
|
|
|
MASTERCARD INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
(in millions, except per share data)
|
|
Net Revenue
|
|
|
$
|
2,517
|
|
|
$
|
2,411
|
|
|
$
|
9,667
|
|
|
$
|
9,441
|
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
998
|
|
|
972
|
|
|
3,341
|
|
|
3,152
|
|
|
Advertising and marketing
|
|
|
319
|
|
|
337
|
|
|
821
|
|
|
862
|
|
|
Depreciation and amortization
|
|
|
93
|
|
|
84
|
|
|
366
|
|
|
321
|
|
|
Provision for litigation settlement
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
Total operating expenses
|
|
|
1,410
|
|
|
1,393
|
|
|
4,589
|
|
|
4,335
|
|
|
Operating income
|
|
|
1,107
|
|
|
1,018
|
|
|
5,078
|
|
|
5,106
|
|
|
Other Income (Expense)
|
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
|
5
|
|
|
7
|
|
|
25
|
|
|
28
|
|
|
Interest expense
|
|
|
(12
|
)
|
|
(16
|
)
|
|
(61
|
)
|
|
(48
|
)
|
|
Other income (expense), net
|
|
|
(75
|
)
|
|
(2
|
)
|
|
(84
|
)
|
|
(7
|
)
|
|
Total other income (expense)
|
|
|
(82
|
)
|
|
(11
|
)
|
|
(120
|
)
|
|
(27
|
)
|
|
Income before income taxes
|
|
|
1,025
|
|
|
1,007
|
|
|
4,958
|
|
|
5,079
|
|
|
Income tax expense
|
|
|
135
|
|
|
206
|
|
|
1,150
|
|
|
1,462
|
|
|
Net Income
|
|
|
$
|
890
|
|
|
$
|
801
|
|
|
$
|
3,808
|
|
|
$
|
3,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per Share
|
|
|
$
|
0.79
|
|
|
$
|
0.70
|
|
|
$
|
3.36
|
|
|
$
|
3.11
|
|
|
Basic Weighted-Average Shares Outstanding
|
|
|
1,121
|
|
|
1,153
|
|
|
1,134
|
|
|
1,165
|
|
|
Diluted Earnings per Share
|
|
|
$
|
0.79
|
|
|
$
|
0.69
|
|
|
$
|
3.35
|
|
|
$
|
3.10
|
|
|
Diluted Weighted-Average Shares Outstanding
|
|
|
1,124
|
|
|
1,157
|
|
|
1,137
|
|
|
1,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MASTERCARD INCORPORATED
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
(in millions, except per share data)
|
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
5,747
|
|
|
$
|
5,137
|
|
|
Restricted cash for litigation settlement
|
|
541
|
|
|
540
|
|
|
Investments
|
|
991
|
|
|
1,238
|
|
|
Accounts receivable
|
|
1,079
|
|
|
1,109
|
|
|
Settlement due from customers
|
|
1,068
|
|
|
1,052
|
|
|
Restricted security deposits held for customers
|
|
895
|
|
|
950
|
|
|
Prepaid expenses and other current assets
|
|
664
|
|
|
671
|
|
|
Deferred income taxes
|
|
—
|
|
|
300
|
|
|
Total Current Assets
|
|
10,985
|
|
|
10,997
|
|
|
Property, plant and equipment, net
|
|
675
|
|
|
615
|
|
|
Deferred income taxes
|
|
317
|
|
|
96
|
|
|
Goodwill
|
|
1,891
|
|
|
1,522
|
|
|
Other intangible assets, net
|
|
803
|
|
|
714
|
|
|
Other assets
|
|
1,598
|
|
|
1,385
|
|
|
Total Assets
|
|
$
|
16,269
|
|
|
$
|
15,329
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Accounts payable
|
|
$
|
472
|
|
|
$
|
419
|
|
|
Settlement due to customers
|
|
866
|
|
|
1,142
|
|
|
Restricted security deposits held for customers
|
|
895
|
|
|
950
|
|
|
Accrued litigation
|
|
709
|
|
|
771
|
|
|
Accrued expenses
|
|
2,763
|
|
|
2,439
|
|
|
Other current liabilities
|
|
564
|
|
|
501
|
|
|
Total Current Liabilities
|
|
6,269
|
|
|
6,222
|
|
|
Long-term debt
|
|
3,287
|
|
|
1,494
|
|
|
Deferred income taxes
|
|
79
|
|
|
115
|
|
|
Other liabilities
|
|
572
|
|
|
674
|
|
|
Total Liabilities
|
|
10,207
|
|
|
8,505
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
Stockholders’ Equity
|
|
|
|
|
|
Class A common stock, $0.0001 par value; authorized 3,000 shares,
1,370 and 1,352 shares issued and 1,095 and 1,115 outstanding,
respectively
|
|
—
|
|
|
—
|
|
|
Class B common stock, $0.0001 par value; authorized 1,200 shares, 21
and 37 issued and outstanding, respectively
|
|
—
|
|
|
—
|
|
|
Additional paid-in-capital
|
|
4,004
|
|
|
3,876
|
|
|
Class A treasury stock, at cost, 275 and 237 shares, respectively
|
|
(13,522
|
)
|
|
(9,995
|
)
|
|
Retained earnings
|
|
16,222
|
|
|
13,169
|
|
|
Accumulated other comprehensive income (loss)
|
|
(676
|
)
|
|
(260
|
)
|
|
Total Stockholders’ Equity
|
|
6,028
|
|
|
6,790
|
|
|
Non-controlling interests
|
|
34
|
|
|
34
|
|
|
Total Equity
|
|
6,062
|
|
|
6,824
|
|
|
Total Liabilities and Equity
|
|
$
|
16,269
|
|
|
$
|
15,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MASTERCARD INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
|
|
|
|
|
|
|
|
For the Years Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
(in millions)
|
|
Operating Activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,808
|
|
|
$
|
3,617
|
|
|
$
|
3,116
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Amortization of customer and merchant incentives
|
|
764
|
|
|
691
|
|
|
603
|
|
|
Depreciation and amortization
|
|
366
|
|
|
321
|
|
|
258
|
|
|
Share-based payments
|
|
22
|
|
|
(15
|
)
|
|
63
|
|
|
Deferred income taxes
|
|
(16
|
)
|
|
(91
|
)
|
|
(119
|
)
|
|
Other
|
|
(81
|
)
|
|
52
|
|
|
67
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(35
|
)
|
|
(164
|
)
|
|
(42
|
)
|
|
Income taxes receivable
|
|
(14
|
)
|
|
(8
|
)
|
|
153
|
|
|
Settlement due from customers
|
|
(98
|
)
|
|
185
|
|
|
(194
|
)
|
|
Prepaid expenses
|
|
(802
|
)
|
|
(1,316
|
)
|
|
(598
|
)
|
|
Accrued litigation and legal settlements
|
|
(63
|
)
|
|
(115
|
)
|
|
160
|
|
|
Accounts payable
|
|
49
|
|
|
61
|
|
|
(20
|
)
|
|
Settlement due to customers
|
|
(186
|
)
|
|
(165
|
)
|
|
322
|
|
|
Accrued expenses
|
|
325
|
|
|
389
|
|
|
315
|
|
|
Net change in other assets and liabilities
|
|
4
|
|
|
(35
|
)
|
|
51
|
|
|
Net cash provided by operating activities
|
|
4,043
|
|
|
3,407
|
|
|
4,135
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
Purchases of investment securities available-for-sale
|
|
(974
|
)
|
|
(2,385
|
)
|
|
(2,526
|
)
|
|
Purchases of other short-term investments held-to-maturity
|
|
(918
|
)
|
|
—
|
|
|
—
|
|
|
Proceeds from sales of investment securities available-for-sale
|
|
703
|
|
|
2,477
|
|
|
1,488
|
|
|
Proceeds from maturities of investment securities available-for-sale
|
|
542
|
|
|
1,358
|
|
|
1,321
|
|
|
Proceeds from maturities of investment securities held-to-maturity
|
|
857
|
|
|
—
|
|
|
36
|
|
|
Purchases of property, plant and equipment
|
|
(177
|
)
|
|
(175
|
)
|
|
(155
|
)
|
|
Capitalized software
|
|
(165
|
)
|
|
(159
|
)
|
|
(144
|
)
|
|
Acquisition of businesses, net of cash acquired
|
|
(584
|
)
|
|
(525
|
)
|
|
—
|
|
|
(Increase) decrease in restricted cash for litigation settlement
|
|
(1
|
)
|
|
183
|
|
|
3
|
|
|
Other investing activities
|
|
2
|
|
|
(84
|
)
|
|
(27
|
)
|
|
Net cash (used in) provided by investing activities
|
|
(715
|
)
|
|
690
|
|
|
(4
|
)
|
|
Financing Activities
|
|
|
|
|
|
|
|
Purchases of treasury stock
|
|
(3,518
|
)
|
|
(3,386
|
)
|
|
(2,443
|
)
|
|
Proceeds from debt
|
|
1,735
|
|
|
1,530
|
|
|
35
|
|
|
Dividends paid
|
|
(727
|
)
|
|
(515
|
)
|
|
(255
|
)
|
|
Tax benefit for share-based payments
|
|
42
|
|
|
54
|
|
|
19
|
|
|
Cash proceeds from exercise of stock options
|
|
27
|
|
|
28
|
|
|
26
|
|
|
Other financing activities
|
|
(17
|
)
|
|
(50
|
)
|
|
(11
|
)
|
|
Net cash used in financing activities
|
|
(2,458
|
)
|
|
(2,339
|
)
|
|
(2,629
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(260
|
)
|
|
(220
|
)
|
|
45
|
|
|
Net increase in cash and cash equivalents
|
|
610
|
|
|
1,538
|
|
|
1,547
|
|
|
Cash and cash equivalents - beginning of period
|
|
5,137
|
|
|
3,599
|
|
|
2,052
|
|
|
Cash and cash equivalents - end of period
|
|
$
|
5,747
|
|
|
$
|
5,137
|
|
|
$
|
3,599
|
|
|
|
|
|
|
|
|
|
|
Non-Cash Investing and Financing Activities
|
|
|
|
|
|
|
|
Fair value of assets acquired, net of cash acquired
|
|
$
|
626
|
|
|
$
|
768
|
|
|
$
|
—
|
|
|
Fair value of liabilities assumed related to acquisitions
|
|
$
|
42
|
|
|
$
|
141
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MASTERCARD INCORPORATED OPERATING PERFORMANCE
|
|
|
|
|
|
For the 3 Months ended December 31, 2015
|
|
All MasterCard Credit,
|
GDV
|
|
Growth
|
|
Growth
|
|
Purchase
Volume
|
|
Growth
|
|
Purchase
Trans.
|
|
Cash
Volume
|
|
Growth
|
|
Cash
Trans.
|
|
Accounts
|
|
Cards
|
|
Charge and Debit Programs
|
(Bil.)
|
|
(USD)
|
|
(Local)
|
|
(Bil.)
|
|
(Local)
|
|
(Mil.)
|
|
(Bil.)
|
|
(Local)
|
|
(Mil.)
|
|
(Mil.)
|
|
(Mil.)
|
|
APMEA
|
$363
|
|
4.5%
|
|
13.7%
|
|
$245
|
|
13.3%
|
|
3,324
|
|
$118
|
|
14.5%
|
|
1,214
|
|
520
|
|
555
|
|
Canada
|
34
|
|
-3.2%
|
|
13.8%
|
|
33
|
|
14.5%
|
|
487
|
|
2
|
|
1.1%
|
|
6
|
|
43
|
|
49
|
|
Europe
|
341
|
|
-1.3%
|
|
15.1%
|
|
234
|
|
13.5%
|
|
4,933
|
|
108
|
|
18.8%
|
|
824
|
|
393
|
|
410
|
|
Latin America
|
83
|
|
-14.6%
|
|
15.2%
|
|
47
|
|
16.0%
|
|
1,513
|
|
36
|
|
14.1%
|
|
251
|
|
150
|
|
172
|
|
Worldwide less United States
|
821
|
|
-0.5%
|
|
14.4%
|
|
558
|
|
13.7%
|
|
10,257
|
|
263
|
|
16.1%
|
|
2,294
|
|
1,106
|
|
1,186
|
|
United States
|
378
|
|
8.4%
|
|
8.4%
|
|
324
|
|
8.8%
|
|
5,891
|
|
53
|
|
6.5%
|
|
332
|
|
341
|
|
377
|
|
Worldwide
|
1,199
|
|
2.2%
|
|
12.5%
|
|
883
|
|
11.8%
|
|
16,147
|
|
316
|
|
14.3%
|
|
2,626
|
|
1,447
|
|
1,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Credit and Charge Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
456
|
|
-4.1%
|
|
9.5%
|
|
417
|
|
10.5%
|
|
6,011
|
|
39
|
|
0.3%
|
|
190
|
|
524
|
|
588
|
|
United States
|
181
|
|
9.3%
|
|
9.3%
|
|
174
|
|
8.9%
|
|
1,995
|
|
7
|
|
21.3%
|
|
9
|
|
160
|
|
192
|
|
Worldwide
|
637
|
|
-0.6%
|
|
9.5%
|
|
591
|
|
10.0%
|
|
8,006
|
|
47
|
|
3.1%
|
|
199
|
|
683
|
|
780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Debit Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
365
|
|
4.4%
|
|
21.2%
|
|
142
|
|
24.2%
|
|
4,246
|
|
223
|
|
19.4%
|
|
2,104
|
|
582
|
|
598
|
|
United States
|
197
|
|
7.6%
|
|
7.6%
|
|
151
|
|
8.6%
|
|
3,896
|
|
46
|
|
4.5%
|
|
323
|
|
182
|
|
185
|
|
Worldwide
|
562
|
|
5.5%
|
|
16.1%
|
|
292
|
|
15.7%
|
|
8,141
|
|
269
|
|
16.5%
|
|
2,427
|
|
764
|
|
783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the 12 Months ended December 31, 2015
|
|
All MasterCard Credit,
|
GDV
|
|
Growth
|
|
Growth
|
|
Purchase
Volume
|
|
Growth
|
|
Purchase
Trans.
|
|
Cash
Volume
|
|
Growth
|
|
Cash
Trans.
|
|
Accounts
|
|
Cards
|
|
Charge and Debit Programs
|
(Bil.)
|
|
(USD)
|
|
(Local)
|
|
(Bil.)
|
|
(Local)
|
|
(Mil.)
|
|
(Bil.)
|
|
(Local)
|
|
(Mil.)
|
|
(Mil.)
|
|
(Mil.)
|
|
APMEA
|
$1,387
|
|
5.7%
|
|
14.5%
|
|
$934
|
|
14.6%
|
|
12,037
|
|
$453
|
|
14.1%
|
|
4,453
|
|
520
|
|
555
|
|
Canada
|
131
|
|
0.0%
|
|
16.0%
|
|
124
|
|
17.5%
|
|
1,801
|
|
7
|
|
-5.2%
|
|
22
|
|
43
|
|
49
|
|
Europe
|
1,279
|
|
-5.6%
|
|
15.9%
|
|
882
|
|
14.1%
|
|
17,900
|
|
397
|
|
20.0%
|
|
3,046
|
|
393
|
|
410
|
|
Latin America
|
320
|
|
-10.8%
|
|
15.4%
|
|
187
|
|
17.7%
|
|
5,666
|
|
133
|
|
12.3%
|
|
919
|
|
150
|
|
172
|
|
Worldwide less United States
|
3,118
|
|
-1.2%
|
|
15.2%
|
|
2,127
|
|
14.8%
|
|
37,403
|
|
990
|
|
16.0%
|
|
8,440
|
|
1,106
|
|
1,186
|
|
United States
|
1,446
|
|
7.5%
|
|
7.5%
|
|
1,233
|
|
7.7%
|
|
22,260
|
|
213
|
|
6.2%
|
|
1,341
|
|
341
|
|
377
|
|
Worldwide
|
4,564
|
|
1.4%
|
|
12.6%
|
|
3,360
|
|
12.1%
|
|
59,663
|
|
1,204
|
|
14.1%
|
|
9,782
|
|
1,447
|
|
1,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Credit and Charge Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
1,771
|
|
-3.8%
|
|
10.6%
|
|
1,612
|
|
11.8%
|
|
22,492
|
|
159
|
|
0.0%
|
|
748
|
|
524
|
|
588
|
|
United States
|
681
|
|
7.6%
|
|
7.6%
|
|
653
|
|
7.4%
|
|
7,349
|
|
28
|
|
11.2%
|
|
34
|
|
160
|
|
192
|
|
Worldwide
|
2,452
|
|
-0.9%
|
|
9.7%
|
|
2,264
|
|
10.5%
|
|
29,841
|
|
187
|
|
1.5%
|
|
782
|
|
683
|
|
780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Debit Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
1,347
|
|
2.3%
|
|
21.9%
|
|
516
|
|
25.6%
|
|
14,911
|
|
831
|
|
19.6%
|
|
7,693
|
|
582
|
|
598
|
|
United States
|
765
|
|
7.4%
|
|
7.4%
|
|
580
|
|
8.0%
|
|
14,911
|
|
185
|
|
5.5%
|
|
1,308
|
|
182
|
|
185
|
|
Worldwide
|
2,112
|
|
4.1%
|
|
16.2%
|
|
1,096
|
|
15.6%
|
|
29,823
|
|
1,016
|
|
16.8%
|
|
9,000
|
|
764
|
|
783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the 3 Months ended December 31, 2014
|
|
All MasterCard Credit,
|
GDV
|
|
Growth
|
|
Growth
|
|
Purchase
Volume
|
|
Growth
|
|
Purchase
Trans.
|
|
Cash
Volume
|
|
Growth
|
|
Cash
Trans.
|
|
Accounts
|
|
Cards
|
|
Charge and Debit Programs
|
(Bil.)
|
|
(USD)
|
|
(Local)
|
|
(Bil.)
|
|
(Local)
|
|
(Mil.)
|
|
(Bil.)
|
|
(Local)
|
|
(Mil.)
|
|
(Mil.)
|
|
(Mil.)
|
|
APMEA
|
$347
|
|
11.0%
|
|
15.4%
|
|
$234
|
|
14.9%
|
|
2,764
|
|
$114
|
|
16.5%
|
|
1,037
|
|
451
|
|
482
|
|
Canada
|
35
|
|
1.9%
|
|
10.4%
|
|
33
|
|
12.5%
|
|
420
|
|
2
|
|
-16.3%
|
|
5
|
|
37
|
|
44
|
|
Europe
|
346
|
|
1.6%
|
|
15.9%
|
|
234
|
|
12.2%
|
|
4,041
|
|
111
|
|
24.7%
|
|
718
|
|
358
|
|
374
|
|
Latin America
|
97
|
|
3.4%
|
|
16.1%
|
|
59
|
|
22.0%
|
|
1,369
|
|
38
|
|
7.9%
|
|
226
|
|
136
|
|
156
|
|
Worldwide less United States
|
825
|
|
5.6%
|
|
15.5%
|
|
561
|
|
14.3%
|
|
8,594
|
|
265
|
|
18.1%
|
|
1,986
|
|
982
|
|
1,057
|
|
United States
|
348
|
|
7.6%
|
|
7.6%
|
|
298
|
|
8.2%
|
|
5,307
|
|
50
|
|
3.6%
|
|
325
|
|
318
|
|
353
|
|
Worldwide
|
1,174
|
|
6.2%
|
|
13.0%
|
|
859
|
|
12.1%
|
|
13,901
|
|
315
|
|
15.5%
|
|
2,312
|
|
1,300
|
|
1,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Credit and Charge Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
476
|
|
2.1%
|
|
10.5%
|
|
429
|
|
11.7%
|
|
5,402
|
|
46
|
|
0.3%
|
|
198
|
|
505
|
|
568
|
|
United States
|
166
|
|
6.9%
|
|
6.9%
|
|
160
|
|
7.9%
|
|
1,781
|
|
6
|
|
-14.9%
|
|
8
|
|
150
|
|
181
|
|
Worldwide
|
641
|
|
3.3%
|
|
9.5%
|
|
589
|
|
10.6%
|
|
7,183
|
|
52
|
|
-1.8%
|
|
206
|
|
655
|
|
749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Debit Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
350
|
|
10.7%
|
|
23.1%
|
|
131
|
|
23.8%
|
|
3,192
|
|
218
|
|
22.7%
|
|
1,788
|
|
477
|
|
489
|
|
United States
|
183
|
|
8.2%
|
|
8.2%
|
|
139
|
|
8.6%
|
|
3,526
|
|
44
|
|
6.8%
|
|
318
|
|
168
|
|
172
|
|
Worldwide
|
532
|
|
9.8%
|
|
17.5%
|
|
270
|
|
15.5%
|
|
6,718
|
|
262
|
|
19.7%
|
|
2,106
|
|
645
|
|
661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the 12 Months ended December 31, 2014
|
|
All MasterCard Credit,
|
GDV
|
|
Growth
|
|
Growth
|
|
Purchase
Volume
|
|
Growth
|
|
Purchase
Trans.
|
|
Cash
Volume
|
|
Growth
|
|
Cash
Trans.
|
|
Accounts
|
|
Cards
|
|
Charge and Debit Programs
|
(Bil.)
|
|
(USD)
|
|
(Local)
|
|
(Bil.)
|
|
(Local)
|
|
(Mil.)
|
|
(Bil.)
|
|
(Local)
|
|
(Mil.)
|
|
(Mil.)
|
|
(Mil.)
|
|
APMEA
|
$1,312
|
|
13.6%
|
|
17.2%
|
|
$879
|
|
16.6%
|
|
9,990
|
|
$434
|
|
18.4%
|
|
3,863
|
|
451
|
|
482
|
|
Canada
|
131
|
|
-0.2%
|
|
6.9%
|
|
122
|
|
8.7%
|
|
1,529
|
|
9
|
|
-13.0%
|
|
23
|
|
37
|
|
44
|
|
Europe
|
1,355
|
|
9.4%
|
|
13.9%
|
|
917
|
|
10.6%
|
|
14,627
|
|
438
|
|
21.5%
|
|
2,665
|
|
358
|
|
374
|
|
Latin America
|
359
|
|
4.9%
|
|
14.7%
|
|
219
|
|
20.6%
|
|
5,072
|
|
140
|
|
6.5%
|
|
838
|
|
136
|
|
156
|
|
Worldwide less United States
|
3,157
|
|
10.1%
|
|
15.0%
|
|
2,137
|
|
13.9%
|
|
31,218
|
|
1,020
|
|
17.5%
|
|
7,388
|
|
982
|
|
1,057
|
|
United States
|
1,346
|
|
8.2%
|
|
8.2%
|
|
1,145
|
|
8.9%
|
|
20,352
|
|
201
|
|
4.6%
|
|
1,300
|
|
318
|
|
353
|
|
Worldwide
|
4,503
|
|
9.6%
|
|
12.9%
|
|
3,282
|
|
12.1%
|
|
51,570
|
|
1,221
|
|
15.2%
|
|
8,688
|
|
1,300
|
|
1,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Credit and Charge Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
1,840
|
|
6.7%
|
|
10.8%
|
|
1,647
|
|
12.1%
|
|
20,159
|
|
193
|
|
1.2%
|
|
809
|
|
505
|
|
568
|
|
United States
|
633
|
|
7.8%
|
|
7.8%
|
|
607
|
|
8.4%
|
|
6,729
|
|
26
|
|
-4.8%
|
|
28
|
|
150
|
|
181
|
|
Worldwide
|
2,473
|
|
7.0%
|
|
10.0%
|
|
2,254
|
|
11.1%
|
|
26,888
|
|
219
|
|
0.4%
|
|
838
|
|
655
|
|
749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Debit Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
1,317
|
|
15.3%
|
|
21.4%
|
|
490
|
|
20.2%
|
|
11,058
|
|
827
|
|
22.2%
|
|
6,579
|
|
477
|
|
489
|
|
United States
|
713
|
|
8.6%
|
|
8.6%
|
|
537
|
|
9.4%
|
|
13,623
|
|
175
|
|
6.1%
|
|
1,271
|
|
168
|
|
172
|
|
Worldwide
|
2,030
|
|
12.9%
|
|
16.6%
|
|
1,027
|
|
14.3%
|
|
24,682
|
|
1,002
|
|
19.0%
|
|
7,850
|
|
645
|
|
661
|
|
|
|
APMEA = Asia Pacific / Middle East / Africa
|
|
Note that the figures in the preceding tables may not sum due to
rounding; growth represents change from the comparable year-ago
period
|
|
|
Footnote
The tables set forth the gross dollar volume (“GDV”), purchase volume,
cash volume and the number of purchase transactions, cash transactions,
accounts and cards on a regional and global basis for
MasterCard®-branded and MasterCard Electronic™-branded cards. Growth
rates over prior periods are provided for volume-based data.
Debit transactions on Maestro® and Cirrus®-branded cards and
transactions involving brands other than MasterCard are not included in
the preceding tables.
For purposes of the table: GDV represents purchase volume plus cash
volume and includes the impact of balance transfers and convenience
checks; “purchase volume” means the aggregate dollar amount of purchases
made with MasterCard-branded cards for the relevant period; and “cash
volume” means the aggregate dollar amount of cash disbursements obtained
with MasterCard-branded cards for the relevant period. The number of
cards includes virtual cards, which are MasterCard-branded payment
accounts that do not generally have physical cards associated with them.
The MasterCard payment product is comprised of credit, charge and debit
programs, and data relating to each type of program is included in the
tables. Debit programs include MasterCard-branded debit programs where
the primary means of cardholder validation at the point of sale is for
cardholders either to sign a sales receipt or enter a PIN. The tables
include information with respect to transactions involving
MasterCard-branded cards that are not processed by MasterCard and
transactions for which MasterCard does not earn significant revenues.
Information denominated in U.S. dollars is calculated by applying an
established U.S. dollar/local currency exchange rate for each local
currency in which MasterCard volumes are reported. These exchange rates
are calculated on a quarterly basis using the average exchange rate for
each quarter. MasterCard reports period-over-period rates of change in
purchase volume and cash volume on the basis of local currency
information, in order to eliminate the impact of changes in the value of
foreign currencies against the U.S. dollar in calculating such rates of
change.
The data set forth in the GDV, purchase volume, purchase transactions,
cash volume and cash transactions columns is provided by MasterCard
customers and is subject to verification by MasterCard and partial
cross-checking against information provided by MasterCard’s transaction
processing systems. The data set forth in the accounts and cards columns
is provided by MasterCard customers and is subject to certain limited
verification by MasterCard. A portion of the data set forth in the
accounts and cards columns reflects the impact of routine portfolio
changes among customers and other practices that may lead to over
counting of the underlying data in certain circumstances. All data is
subject to revision and amendment by MasterCard’s customers subsequent
to the date of its release.
In 2015 Q3, several customers purged inactive MasterCard cards and
accounts. Data for the comparable periods has been revised to be
consistent with this approach.
Performance information for prior periods can be found in the “Investor
Relations” section of the MasterCard website at www.mastercard.com/investor.
|
|
|
Non-GAAP Reconciliations
($ in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2015
|
|
Twelve
Months
Ended
December
31, 2014
|
|
Percent Increase / (Decrease)
|
|
|
|
|
Actual
|
|
Special
Items1
|
|
Non-GAAP
|
|
Actual
|
|
Actual
|
|
Special
Items1
|
|
Non-GAAP
|
|
Total operating expenses
|
|
|
$
|
4,589
|
|
|
$
|
(140
|
)
|
|
$
|
4,449
|
|
|
$
|
4,335
|
|
|
6
|
%
|
|
3
|
%
|
|
3
|
%
|
|
Operating income
|
|
|
$
|
5,078
|
|
|
$
|
140
|
|
|
$
|
5,218
|
|
|
$
|
5,106
|
|
|
(1
|
)%
|
|
(3
|
)%
|
|
2
|
%
|
|
Operating Margin
|
|
|
52.5
|
%
|
|
|
|
54.0
|
%
|
|
54.1
|
%
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
$
|
1,150
|
|
|
$
|
45
|
|
|
$
|
1,195
|
|
|
$
|
1,462
|
|
|
(21
|
)%
|
|
(3
|
)%
|
|
(18
|
)%
|
|
Effective Tax Rate
|
|
|
23.2
|
%
|
|
|
|
23.4
|
%
|
|
28.8
|
%
|
|
|
|
|
|
|
|
Net Income
|
|
|
$
|
3,808
|
|
|
$
|
95
|
|
|
$
|
3,903
|
|
|
$
|
3,617
|
|
|
5
|
%
|
|
(3
|
)%
|
|
8
|
%
|
|
Diluted Earnings per Share
|
|
|
$
|
3.35
|
|
|
$
|
0.08
|
|
|
$
|
3.43
|
|
|
$
|
3.10
|
|
|
8
|
%
|
|
(3
|
)%
|
|
11
|
%
|
|
|
|
Note: Figures may not sum due to rounding
|
|
1 Represents effect of termination of the U.S. employee
pension plan of $79 million ($50 million after tax or $0.04 per
diluted share) and U.K. Merchant Litigation Settlement of $61
million ($44 million after tax or $0.04 per diluted share).
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160129005428/en/
Source: MasterCard Investor Relations