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Press release from Business Wire

MasterCard Incorporated Reports Second-Quarter 2012 Financial Results

<ul> <li class='bwlistitemmargb'> <i><b>Net income of $713 million, or $5.65 per diluted share, excluding a special item</b></i> </li> <li class='bwlistitemmargb'> <i><b>Net income of $700 million, or $5.55 per diluted share, including a special item</b></i> </li> <li class='bwlistitemmargb'> <i><b>Net revenue increase of 9%, to $1.8 billion</b></i> </li> <li class='bwlistitemmargb'> <i><b>Gross dollar volume up 15% and purchase volume up 13%</b></i> </li> </ul>

Wednesday, August 01, 2012

MasterCard Incorporated Reports Second-Quarter 2012 Financial Results08:00 EDT Wednesday, August 01, 2012 PURCHASE, N.Y. (Business Wire) -- MasterCard Incorporated (NYSE: MA) today announced financial results for the second quarter of 2012. Excluding a special item, the company reported net income of $713 million, up 17%, and earnings per diluted share of $5.65, up 19%, in each case versus the year-ago period. Including the special item, an incremental $13 million after-tax charge related to the U.S. merchant litigations, the company reported net income of $700 million, or $5.55 per diluted share. The company's total operating expenses, operating income, net income and earnings per share, excluding the special item, are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables. Net revenue for the second quarter of 2012 was $1.8 billion, a 9% increase versus the same period in 2011. On a constant currency basis, net revenue increased 13% compared to the same period in 2011. Net revenue growth was driven by the impact of the following: A 15% increase in gross dollar volume on a local currency basis, to $890 billion; An increase in processed transactions of 29%, to 8.5 billion; and An increase in cross-border volumes of 17%. These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes. Worldwide purchase volume during the quarter was up 13% on a local currency basis versus the second quarter of 2011, to $661 billion. As of June 30, 2012, the company's customers had issued 1.8 billion MasterCard and Maestro-branded cards. “Though economic uncertainties continued to persist, we experienced solid volume and processed transaction growth in all regions as we are focused on driving our global business to expand the reach of electronic payments,” said Ajay Banga, MasterCard president and CEO. “We are executing on strategic partnerships as demonstrated by our recent announcement with Deutsche Telekom and the completion of AliPay's integration with the DataCash payment platform, which will expand AliPay's reach to online retailers outside of China. We also continue to work with government entities around the world, like the South African Social Security Agency, to help them implement more efficient and secure ways to deliver social benefits and to increase transparency and financial inclusion.” Based on the company's decision to enter into settlement agreements in the U.S. merchant litigations, the company recorded a $20 million pre-tax charge, or $13 million on an after-tax basis, in the second quarter of 2012. This special item is incremental to the charge taken in the fourth quarter of 2011 to reflect the company's total financial portion of $790 million in the settlement of these cases. Excluding the special item, total operating expenses increased 6%, to $826 million in the second quarter of 2012. On a constant currency basis, operating expenses increased 9%. The increase in total operating expenses was primarily driven by higher personnel costs related to strategic initiatives. Including the special item, total operating expenses for the second quarter of 2012 increased 8% versus the year-ago period, to $846 million. Excluding the special item, operating income for the second quarter of 2012 increased 12% over the year-ago period and the company delivered an operating margin of 54.6%. MasterCard reported other expense of $1 million in the second quarter of 2012 versus other income of $7 million in the second quarter of 2011. The change was primarily driven by increased expenses from investments in joint ventures. Including the special item, the effective tax rate was 28.0% in the second quarter of 2012, versus a rate of 31.8% in the comparable period in 2011. The decrease was primarily due to discrete benefits relating to additional export incentives and the conclusion of tax examinations in certain jurisdictions. A more favorable geographic mix of earnings also contributed to the decrease. During the second quarter of 2012, MasterCard repurchased approximately 1.6 million shares of Class A common stock at a cost of $671 million. Quarter-to-date through July 26, the company repurchased an additional 132,250 shares at a cost of approximately $57 million, with $1.4 billion remaining under the most recent $1.5 billion repurchase program authorization. Year-to-Date 2012 Results For the six months ended June 30, 2012, MasterCard reported net income of $1.4 billion, or $11.01 per diluted share, excluding the special item from the second quarter of 2012. Including the special item, diluted earnings per share was $10.91. Net revenue for the six months ended June 30, 2012 was $3.6 billion, an increase of 13% versus the same period in 2011, or 16% on a constant currency basis. Gross dollar volume growth of 17%, transaction processing growth of 29% and cross-border volume growth of 18% contributed to the net revenue growth in the year-to-date period. These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed customer agreements and increased volumes. Excluding the special item, total operating expenses increased 9%, to $1.6 billion, for the six months ended June 30, 2012, primarily due to higher personnel costs related to strategic initiatives. Excluding currency fluctuations, total operating expenses increased 12%. Including the special item, total operating expenses increased 11%. Excluding the special item, operating income increased 16% for the first half of 2012 versus the first half of 2011, delivering an operating margin of 55.7%. MasterCard reported total other expense of $2 million for the six months ended June 30, 2012, versus other income of $7 million in the same period last year. This change was primarily driven by increased expenses from investments in joint ventures. MasterCard's effective tax rate was 30.0% in the six months ended June 30, 2012, including and excluding the special item, versus a rate of 32.3% in the comparable period in 2011. The decrease was primarily due to discrete benefits relating to additional export incentives and the conclusion of tax examinations in certain jurisdictions. A more favorable geographic mix of earnings also contributed to the decrease. Second-Quarter Financial Results Conference Call Details At 9:00 a.m. ET today, the company will host a conference call to discuss its second-quarter results. The dial-in information for this call is 866-383-8008 (within the U.S.) and 617-597-5341 (outside the U.S.) and the passcode is 96010404. A replay of the call will be available for one week following the meeting. The replay can be accessed by dialing 888-286-8010 (within the U.S.) and 617-801-6888 (outside the U.S.) and using passcode 11595402. The live call and the replay, along with supporting materials, can also be accessed through the Investor Relations section of the company's website at mastercard.com. About MasterCard IncorporatedMasterCard (NYSE: MA), www.mastercard.com,is a global payments and technology company. It operates 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 Cashless Conversations Blog and subscribe for the latest news. 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 the Company's ability to execute on strategic partnerships and partner with governments around the world to expand the reach of electronic payments. 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, 2011, the company's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that have been filed with the SEC during 2012, 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 INCORPORATEDCONSOLIDATED STATEMENT OF OPERATIONS(UNAUDITED)   Three Months EndedSix Months EndedJune 30,June 30,   2012       2011     2012       2011   (in millions, except per share data)   Revenues, net $ 1,820 $ 1,667 $ 3,578 $ 3,168 Operating Expenses General and administrative 591 540 1,170 1,034 Advertising and marketing 179 193 304 322 Depreciation and amortization 56 49 110 91 Provision for litigation settlement   20     -     20     -   Total operating expenses   846       782     1,604       1,447   Operating income 974 885 1,974 1,721 Other Income (Expense) Investment income 9 11 18 23 Interest expense (3 ) (2 ) (9 ) (12 ) Other income (expense), net   (7 )   (2 )   (11 )   (4 ) Total other income (expense)   (1 )   7     (2 )   7   Income before income taxes 973 892 1,972 1,728 Income tax expense   273     284     591     558   Net income 700 608 1,381 1,170 Loss attributable to non-controlling interests   -     -     1     -   Net Income Attributable to MasterCard $ 700   $ 608   $ 1,382   $ 1,170     Basic Earnings per Share $ 5.56   $ 4.77   $ 10.95   $ 9.08   Basic Weighted Average Shares Outstanding   126     127     126     129   Diluted Earnings per Share $ 5.55   $ 4.76   $ 10.91   $ 9.05   Diluted Weighted Average Shares Outstanding   126     128     127     129         MASTERCARD INCORPORATEDCONSOLIDATED BALANCE SHEET(UNAUDITED)     June 30,  December 31,   2012     2011   (in millions, except share data)ASSETS Cash and cash equivalents $ 3,153 $ 3,734 Investment securities available-for-sale 1,803 1,215 Accounts receivable 844 808 Settlement due from customers 807 601 Restricted security deposits held for customers 726 636 Prepaid expenses and other current assets 592 404 Deferred income taxes   358     343   Total Current Assets 8,283 7,741 Property, plant and equipment, net 458 449 Deferred income taxes 116 88 Goodwill 1,009 1,014 Other intangible assets, net of accumulated amortization 656 665 Other assets   718     736   Total Assets $ 11,240   $ 10,693   LIABILITIES AND EQUITY Accounts payable $ 330 $ 360 Settlement due to customers 803 699 Restricted security deposits held for customers 726 636 Accrued litigation 790 770 Accrued expenses 1,475 1,610 Other current liabilities   183     142   Total Current Liabilities 4,307 4,217 Deferred income taxes 105 113 Other liabilities   552     486   Total Liabilities 4,964 4,816 Commitments and ContingenciesStockholders' Equity Class A common stock, $0.0001 par value; authorized 3,000,000,000 shares, 133,196,600 and 132,771,392 shares issued and 119,783,424 and 121,618,059 outstanding, respectively - - Class B common stock, $0.0001 par value; authorized 1,200,000,000 shares, 5,114,123 and 5,245,676 issued and outstanding, respectively - - Additional paid-in-capital 3,571 3,519 Class A treasury stock, at cost, 13,413,176 and 11,153,333 shares, respectively (3,311 ) (2,394 ) Retained earnings 6,052 4,745 Accumulated other comprehensive loss   (47 )   (2 ) Total Stockholders' Equity 6,265 5,868 Non-controlling interests   11     9   Total Equity   6,276     5,877   Total Liabilities and Equity $ 11,240   $ 10,693       MASTERCARD INCORPORATEDCONSOLIDATED STATEMENT OF CASH FLOWS(UNAUDITED)   Six Months EndedJune 30,   2012       2011   (in millions)Operating Activities Net income $ 1,381 $ 1,170 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 110 91 Share-based payments 41 36 Stock units withheld for taxes (38 ) (32 ) Tax benefit for share-based compensation (33 ) (10 ) Deferred income taxes (55 ) 94 Other 24 13 Changes in operating assets and liabilities: Accounts receivable (51 ) (22 ) Income taxes receivable (31 ) - Settlement due from customers (213 ) 42 Prepaid expenses (140 ) (73 ) Obligations under litigation settlements 20 (300 ) Accounts payable (27 ) 34 Settlement due to customers 112 (127 ) Accrued expenses (50 ) (84 ) Net change in other assets and liabilities   18     61   Net cash provided by operating activities   1,068     893   Investing Activities Acquisition of business, net of cash acquired - (460 ) Purchases of investment securities available-for-sale (1,054 ) (39 ) Purchases of property, plant and equipment (40 ) (35 ) Capitalized software (67 ) (37 ) Proceeds from sales of investment securities available-for-sale 104 30 Proceeds from maturities of investment securities available-for-sale 386 28 Proceeds from maturities of investment securities held-to-maturity - 301 Investment in nonmarketable equity investments   (19 )   (2 ) Net cash used in investing activities   (690 )   (214 ) Financing Activities Purchases of treasury stock (919 ) (1,041 ) Dividends paid (57 ) (39 ) Payment of debt - (21 ) Tax benefit for share-based compensation 33 10 Cash proceeds from exercise of stock options 18 8 Contribution by non-controlling interest   3     -   Net cash used in financing activities   (922 )   (1,083 ) Effect of exchange rate changes on cash and cash equivalents   (37 )   101   Net decrease in cash and cash equivalents (581 ) (303 ) Cash and cash equivalents - beginning of period   3,734     3,067   Cash and cash equivalents - end of period $ 3,153   $ 2,764     Non-Cash Investing and Financing Activities Fair value of assets acquired, net of cash acquired $ -   $ 549   Fair value of liabilities assumed related to an acquisition $ -   $ 89                             MASTERCARD INCORPORATED OPERATING PERFORMANCE   For the 3 Months ended June 30, 2012PurchasePurchaseCashCashAcceptanceAll MasterCard Credit,GDVGrowthGrowthVolumeGrowthTrans.VolumeGrowthTrans.AccountsCardsLocationsCharge and Debit Programs(Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.)   (Mil.) APMEA $233 19.2% 22.8% $158 21.9% 1,662 $75 24.9% 573 326 353 10.2 Canada 32 3.4% 7.9% 29 8.9% 324 3 -1.2% 6 40 49 0.9 Europe 263 5.1% 16.4% 184 12.0% 2,574 79 28.3% 475 242 258 9.7 Latin America 71 3.2% 18.7% 43 24.2% 79528 11.2% 1771131374.8 Worldwide less United States 599 9.8% 18.6% 414 16.6% 5,355 185 23.5% 1,231 721 797 25.6 United States 291 8.7% 8.7% 246 8.7% 4,39544 8.5% 3022783108.7 Worldwide 890 9.4% 15.2% 661 13.5% 9,750 229 20.3% 1,533 999 1,107 34.3   MasterCard Credit and Charge Programs Worldwide less United States 380 8.5% 15.7% 333 16.3% 3,817 48 11.7% 202 465 527 United States 142 3.2% 3.2% 135 5.2% 1,5746 -27.3% 7147176 Worldwide 522 7.0% 12.0% 468 12.9% 5,391 54 5.2% 209 612 703   MasterCard Debit Programs Worldwide less United States 219 12.3% 24.0% 82 17.6% 1,538 137 28.2% 1,029 256 270 United States 149 14.4% 14.4% 111 13.3% 2,82138 18.0% 296131134 Worldwide 368 13.1% 20.0% 193 15.1% 4,359 175 25.8% 1,324 387 404   For the 6 Months ended June 30, 2012PurchasePurchaseCashCashAll MasterCard Credit,GDVGrowthGrowthVolumeGrowthTrans.VolumeGrowthTrans.AccountsCardsCharge and Debit Programs(Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.) APMEA $456 22.0% 23.2% $309 22.7% 3,213 $147 24.2% 1,095 326 353 Canada 61 5.8% 9.0% 55 10.4% 613 6 -3.3% 11 40 49 Europe 505 8.8% 17.4% 357 13.1% 4,934 148 29.1% 896 242 258 Latin America 143 9.5% 21.0% 87 26.7% 1,54857 13.1% 350113137 Worldwide less United States 1,165 13.5% 19.6% 808 17.8% 10,309 357 23.7% 2,352 721 797 United States 574 11.2% 11.2% 482 10.8% 8,57192 13.4% 604278310 Worldwide 1,739 12.8% 16.7% 1,290 15.1% 18,881 449 21.4% 2,955 999 1,107   MasterCard Credit and Charge Programs Worldwide less United States 742 12.0% 16.8% 649 17.6% 7,365 93 11.8% 389 465 527 United States 273 5.1% 5.1% 260 6.6% 3,03113 -18.3% 13147176 Worldwide 1,015 10.1% 13.4% 909 14.2% 10,397 106 6.9% 402 612 703   MasterCard Debit Programs Worldwide less United States 423 16.3% 24.7% 159 18.9% 2,944 264 28.5% 1,963 256 270 United States 301 17.5% 17.5% 222 16.2% 5,54079 21.4% 590131134 Worldwide 724 16.8% 21.6% 381 17.3% 8,484 343 26.8% 2,554 387 404   For the 3 Months ended June 30, 2011PurchasePurchaseCashCashAll MasterCard Credit,GDVGrowthGrowthVolumeGrowthTrans.VolumeGrowthTrans.AccountsCardsCharge and Debit Programs(Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.) APMEA $196 36.3% 24.7% $132 27.2% 1,394 $64 20.0% 443 287 313 Canada 31 15.0% 8.1% 28 10.3% 293 3 -9.1% 5 39 48 Europe 250 30.8% 17.4% 181 14.2% 2,231 69 26.8% 395 208 223 Latin America 69 34.9% 24.7% 40 28.4% 67129 19.8% 170105129 Worldwide less United States 546 32.2% 20.3% 382 19.5% 4,589 164 22.0% 1,013 639 713 United States 267 9.9% 9.9% 227 11.3% 3,98741 2.6% 270268302 Worldwide 813 23.9% 16.6% 608 16.3% 8,576 205 17.6% 1,283 907 1,014   MasterCard Credit and Charge Programs Worldwide less United States 351 27.7% 16.3% 305 18.7% 3,348 46 2.9% 182 447 509 United States 137 5.3% 5.3% 129 6.0% 1,5229 -4.9% 7144173 Worldwide 488 20.5% 13.0% 433 14.6% 4,871 54 1.6% 190 592 683   MasterCard Debit Programs Worldwide less United States 195 41.3% 28.0% 77 23.0% 1,240 118 31.5% 830 192 203 United States 130 15.2% 15.2% 98 19.0% 2,46532 4.8% 263124128 Worldwide 325 29.5% 22.5% 175 20.8% 3,705 150 24.7% 1,093 316 331   For the 6 Months ended June 30, 2011PurchasePurchaseCashCashAll MasterCard Credit,GDVGrowthGrowthVolumeGrowthTrans.VolumeGrowthTrans.AccountsCardsCharge and Debit Programs(Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.) APMEA $374 31.9% 22.5% $252 24.4% 2,688 $122 18.7% 850 287 313 Canada 57 13.8% 7.3% 51 8.8% 550 6 -4.1% 10 39 48 Europe 464 23.3% 16.4% 339 13.5% 4,245 125 24.9% 735 208 223 Latin America 131 31.0% 22.4% 76 26.8% 1,28655 16.8% 333105129 Worldwide less United States 1,026 26.7% 18.7% 718 18.1% 8,770 308 20.2% 1,928 639 713 United States 516 7.9% 7.9% 435 9.4% 7,63281 0.7% 524268302 Worldwide 1,542 19.7% 14.9% 1,153 14.7% 16,402 389 15.5% 2,452 907 1,014   MasterCard Credit and Charge Programs Worldwide less United States 663 22.3% 14.5% 575 17.0% 6,412 87 0.5% 347 447 509 United States 260 5.1% 5.1% 244 5.5% 2,89216 -0.5% 14144173 Worldwide 922 16.9% 11.7% 819 13.3% 9,304 103 0.3% 361 592 683   MasterCard Debit Programs Worldwide less United States 364 35.5% 27.3% 143 22.9% 2,358 221 30.3% 1,581 192 203 United States 256 11.0% 11.0% 191 14.8% 4,74065 1.0% 510124128 Worldwide 620 24.2% 20.0% 334 18.1% 7,098 285 22.2% 2,091 316 331   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, cards and acceptance locations 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, Mondex® transactions 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. Acceptance locations include merchant locations, ATMs and other locations where cash may be obtained. 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 receiptor 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. In order to provide a true indication of how broadly our cards can be used, MasterCard seeks to provide the most accurate acceptance figures possible and to maintain that MasterCard acceptance is unsurpassed worldwide by periodically validating our results with third parties. The data set forth in the acceptance locations column is derived through a proprietary methodology designed to minimize the impact of multiple acquiring in certain markets. This data is based on information provided by our customers and other third parties and is subject to certain limited verification by MasterCard and partial cross-checking against information provided by MasterCard's transaction processing systems. All data is subject to revision and amendment by MasterCard's customers subsequent to the date of its release. Performance information for prior periods can be found in the "Investor Relations" section of MasterCard's website at www.mastercard.com.     GAAP Reconciliations ($ in millions, except per share data)     Three Months EndedThree Months EndedJune 30, 2012June 30, 2011Actual   Special ItemNon-GAAPActual   Provision for litigation settlement $ 20 $ (20 ) $ - $ -   Total operating expenses 846 (20 ) 826 782   Operating income 974 20 994 885   Operating Margin53.5%54.6%53.1%   Income before income taxes 973 20 993 892   Income tax expense 273 7 a 280 284   Net Income Attributable to MasterCard 700 13 713 608     Basic Earnings per Share $ 5.56 $ 0.11 $ 5.67 $ 4.77   Diluted Earnings per Share $ 5.55 $ 0.10 $ 5.65 $ 4.76   a- Tax effect of provision for litigation settlement     Six Months EndedSix Months EndedJune 30, 2012June 30, 2011ActualSpecial ItemNon-GAAPActual   Provision for litigation settlement $ 20 $ (20 ) $ - $ -   Total operating expenses 1,604 (20 ) 1,584 1,447   Operating income 1,974 20 1,994 1,721   Operating Margin55.2%55.7%54.3%   Income before income taxes 1,972 20 1,992 1,728   Income tax expense 591 7  a 598 558   Net Income Attributable to MasterCard 1,382 13 1,395 1,170     Basic Earnings per Share $ 10.95 $ 0.10 $ 11.05 $ 9.08   Diluted Earnings per Share $ 10.91 $ 0.10 $ 11.01 $ 9.05   a- Tax effect of provision for litigation settlement   Note: Figures may not sum due to rounding MasterCard IncorporatedInvestor Relations:Barbara Gasper, 914-249-4565investor_relations@mastercard.comorMedia Relations:Jim Issokson, 914-249-6286james_issokson@mastercard.com