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Press release from Business Wire

MasterCard Incorporated Reports Third-Quarter 2012 Financial Results

<ul> <li class='bwlistitemmargb'> <i><b>Net income of $772 million, or $6.17 per diluted share</b></i> </li> <li class='bwlistitemmargb'> <i><b>Net revenue increase of 5%, to $1.9 billion</b></i> </li> <li class='bwlistitemmargb'> <i><b>Gross dollar volume up 14% and purchase volume up 12%</b></i> </li> </ul>

Wednesday, October 31, 2012

MasterCard Incorporated Reports Third-Quarter 2012 Financial Results08:30 EDT Wednesday, October 31, 2012 PURCHASE, N.Y. (Business Wire) -- MasterCard Incorporated (NYSE:MA) today announced financial results for the third quarter of 2012. The company reported net income of $772 million, up 8%, and earnings per diluted share of $6.17, up 10%, in each case versus the year-ago period. Net revenue for the third quarter of 2012 was $1.9 billion, a 5% increase versus the same period in 2011. Adjusted for currency, net revenue increased 10% compared to the same period in 2011. Net revenue growth was driven by the impact of the following: A 14% increase in gross dollar volume on a local currency basis, to $918 billion; An increase in processed transactions of 24%, to 8.7 billion; and An increase in cross-border volumes of 14%. 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 12% on a local currency basis versus the third quarter of 2011, to $676 billion. As of September 30, 2012, the company's customers had issued 1.9 billion MasterCard and Maestro-branded cards. “MasterCard continues to drive solid financial performance and focus on executing key deals, investments and partnerships,” said Ajay Banga, MasterCard president and CEO. “We won significant business in Europe this quarter with Nordea, Credit Agricole and CSOB in the Czech Republic and, in the U.S., we acquired loyalty reward provider Truaxis to better connect consumers with targeted, relevant offers. “Additionally, emerging geographies and governments continue to provide great opportunities for growth. In Africa, our win with Nakumatt, the largest supermarket chain in East Africa, is expected to deliver more than a million multi-currency prepaid loyalty cards to consumers. We also continue to support governments around the world, including new programs in the U.S. and Mexico with several large government agencies that help save money and deliver more effective and efficient programs and benefits,” Banga concluded. Total operating expenses increased 5%, to $854 million in the third quarter of 2012. Adjusted for currency, operating expenses increased 8%. The increase in total operating expenses was primarily driven by higher personnel costs related to strategic initiatives. Operating income for the third quarter of 2012 increased 6% over the year-ago period, and the company delivered an operating margin of 55.5%. MasterCard reported other income of $2 million in the third quarter of 2012 versus other income of $28 million in the third quarter of 2011. The decrease was primarily driven by lower realized gains on sales of investments, an adjustment to acquisition-related provisions in last year's third quarter and increased expenses from investments in joint ventures. The effective tax rate was 27.6% in the third quarter of 2012, versus a rate of 30.5% in the comparable period in 2011. The decrease was primarily due to a discrete benefit related to additional export incentives and a benefit from a deduction related to the Company's authorization software. During the third quarter of 2012, MasterCard repurchased approximately 500,000 shares of Class A common stock at a cost of $216 million. Quarter-to-date through October 25, the company repurchased approximately 255,000 additional shares at a cost of approximately $119 million, with $1.1 billion remaining under the most recent $1.5 billion repurchase program authorization. Year-to-Date 2012 Results For the nine months ended September 30, 2012, MasterCard reported net income of $2.2 billion, or $17.18 per diluted share, excluding a special item taken in the second quarter for an incremental $13 million after-tax charge related to the U.S. merchant litigations. Including the special item, diluted earnings per share was $17.07. Net revenue for the nine months ended September 30, 2012 was $5.5 billion, an increase of 10% versus the same period in 2011, or 14% adjusted for currency. Gross dollar volume growth of 16%, transaction processing growth of 27% and cross-border volume growth of 16% 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, operating expenses increased 8%, to $2.4 billion, for the nine months ended September 30, 2012, primarily due to higher personnel costs related to strategic initiatives. Excluding currency fluctuations and the special item, total operating expenses increased 10%. Including the special item in the second quarter, total operating expenses increased 9%. Excluding the special item, operating income increased 12% for the nine months ended September 30, 2012 versus the same period in 2011, delivering an operating margin of 55.6%. MasterCard reported no other income/expense for the nine months ended September 30, 2012, versus other income of $35 million in the same period last year. This decrease was primarily driven by lower realized gains on sales of investments, increased expenses from investments in joint ventures and an adjustment to acquisition-related provisions made in last year's third quarter. MasterCard's effective tax rate was 29.1% in the nine months ended September 30, 2012, including the special item, compared to a rate of 31.6% in the comparable period in 2011. The decrease was primarily due to discrete benefits related to additional export incentives and the conclusion of tax examinations in certain jurisdictions. Third-Quarter Financial Results Conference Call Details At 10:00 a.m. ET today, the company will host a conference call to discuss its third-quarter results. The dial-in information for this call is 888-771-4371 (within the U.S.) and 847-585-4405 (outside the U.S.) and the passcode is 33358414. A replay of the call will be available for one week following the meeting. The replay can be accessed by dialing 888-843-7419 (within the U.S.) and 630-652-3042 (outside the U.S.) and using passcode 33358414. 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. Non-GAAP Financial Information 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. Presentation of growth rates adjusted for currency also represents a non-GAAP measure. 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 key deals, investments and partnerships globally, including in emerging markets, in order to benefit consumers and support governments around the world to deliver more effective and efficient programs and benefits. 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 EndedSeptember 30,Nine Months EndedSeptember 30,2012   20112012   2011(in millions, except per share data)   Revenues, net $ 1,918 $ 1,818 $ 5,496 $ 4,986 Operating Expenses General and administrative 620 565 1,790 1,599 Advertising and marketing 176 200 480 522 Depreciation and amortization 58 51 168 142 Provision for litigation settlement   -     -     20     -   Total operating expenses   854       816     2,458       2,263   Operating income 1,064 1,002 3,038 2,723 Other Income (Expense) Investment income 9 17 27 40 Interest expense (4 ) (6 ) (13 ) (18 ) Other income (expense), net   (3 )   17     (14 )   13   Total other income (expense)   2     28     -     35   Income before income taxes 1,066 1,030 3,038 2,758 Income tax expense   294     314     885     872   Net income 772 716 2,153 1,886 Loss attributable to non-controlling interests   -     1     1     1   Net Income Attributable to MasterCard $ 772   $ 717   $ 2,154   $ 1,887     Basic Earnings per Share $ 6.19   $ 5.65   $ 17.13   $ 14.71   Basic Weighted Average Shares Outstanding   125     127     126     128   Diluted Earnings per Share $ 6.17   $ 5.63   $ 17.07   $ 14.66   Diluted Weighted Average Shares Outstanding   125     127     126     129     MASTERCARD INCORPORATEDCONSOLIDATED BALANCE SHEET(UNAUDITED)     September 30,2012December 31,2011(in millions, except share data)ASSETS Cash and cash equivalents $ 3,045 $ 3,734 Investment securities available-for-sale 2,594 1,215 Accounts receivable 912 808 Settlement due from customers 815 601 Restricted security deposits held for customers 775 636 Prepaid expenses and other current assets 575 404 Deferred income taxes   356     343   Total Current Assets 9,072 7,741 Property, plant and equipment, net 465 449 Deferred income taxes 101 88 Goodwill 1,087 1,014 Other intangible assets, net of accumulated amortization 676 665 Other assets   719     736   Total Assets $ 12,120   $ 10,693   LIABILITIES AND EQUITY Accounts payable $ 319 $ 360 Settlement due to customers 839 699 Restricted security deposits held for customers 775 636 Accrued litigation 790 770 Accrued expenses 1,620 1,610 Other current liabilities   205     142   Total Current Liabilities 4,548 4,217 Deferred income taxes 103 113 Other liabilities   545     486   Total Liabilities 5,196 4,816 Commitments and ContingenciesStockholders' Equity Class A common stock, $0.0001 par value; authorized 3,000,000,000 shares, 133,420,992 and 132,771,392 shares issued and 119,503,347 and 121,618,059 outstanding, respectively - - Class B common stock, $0.0001 par value; authorized 1,200,000,000 shares, 5,010,762 and 5,245,676 issued and outstanding, respectively - - Additional paid-in-capital 3,619 3,519 Class A treasury stock, at cost, 13,917,645 and 11,153,333 shares, respectively (3,527 ) (2,394 ) Retained earnings 6,786 4,745 Accumulated other comprehensive income (loss)   34     (2 ) Total Stockholders' Equity 6,912 5,868 Non-controlling interests   12     9   Total Equity   6,924     5,877   Total Liabilities and Equity $ 12,120   $ 10,693     MASTERCARD INCORPORATEDCONSOLIDATED STATEMENT OF CASH FLOWS(UNAUDITED)   Nine Months Ended September 30,2012   2011(in millions)Operating Activities Net income $ 2,153 $ 1,886 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 168 142 Share-based payments 66 53 Stock units withheld for taxes (41 ) (33 ) Tax benefit for share-based compensation (46 ) (11 ) Deferred income taxes (40 ) 136 Other 35 7 Changes in operating assets and liabilities: Accounts receivable (112 ) (100 ) Income taxes receivable (53 ) - Settlement due from customers (213 ) (16 ) Prepaid expenses (122 ) 39 Obligations under litigation settlements 20 (302 ) Accounts payable (36 ) (8 ) Settlement due to customers 140 (84 ) Accrued expenses 129 163 Net change in other assets and liabilities   34     28   Net cash provided by operating activities   2,082     1,900   Investing Activities Acquisition of businesses, net of cash acquired (70 ) (460 ) Purchases of investment securities available-for-sale (2,123 ) (188 ) Purchases of property, plant and equipment (68 ) (51 ) Capitalized software (96 ) (65 ) Proceeds from sales of investment securities available-for-sale 195 371 Proceeds from maturities of investment securities available-for-sale 576 36 Proceeds from maturities of investment securities held-to-maturity - 301 Investment in nonmarketable equity investments (25 ) (8 ) Other investing activities   (1 )   9   Net cash used in investing activities   (1,612 )   (55 ) Financing Activities Purchases of treasury stock (1,135 ) (1,118 ) Dividends paid (94 ) (58 ) Payment of debt - (21 ) Tax benefit for share-based compensation 46 11 Cash proceeds from exercise of stock options 28 15 Contribution by non-controlling interest   4     -   Net cash used in financing activities   (1,151 )   (1,171 ) Effect of exchange rate changes on cash and cash equivalents   (8 )   12   Net (decrease) increase in cash and cash equivalents (689 ) 686 Cash and cash equivalents - beginning of period   3,734     3,067   Cash and cash equivalents - end of period $ 3,045   $ 3,753     Non-Cash Investing and Financing Activities Fair value of assets acquired, net of cash acquired $ 73   $ 549   Fair value of liabilities assumed related to acquisitions $ 3   $ 89     MASTERCARD INCORPORATED OPERATING PERFORMANCE     For the 3 Months ended September 30, 2012     All MasterCard Credit,GDV   Growth   Growth   Purchase Volume   Growth   Purchase Trans.   CashVolume   Growth   Cash Trans.   Accounts   CardsAcceptanceLocationsCharge and Debit Programs(Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.)   (Mil.) APMEA $251 18.0 % 21.2 % $170 19.5 % 1,760 $81 25.2 % 614 331 359 10.3 Canada 32 4.1 % 5.6 % 30 6.0 % 331 3 1.9 % 6 41 50 0.9 Europe 271 4.6 % 14.5 % 188 10.9 % 2,683 82 24.0 % 492 249 265 9.9 Latin America 74 4.0 % 16.4 % 44 18.8 % 96830 13.1 % 1781151334.9 Worldwide less United States 628 9.4 % 16.8 % 432 14.5 % 5,743 196 22.3 % 1,291 736 808 26.1 United States 290 7.0 % 7.0 % 244 7.4 % 4,39946 5.2 % 3082793138.8 Worldwide 918 8.7 % 13.5 % 676 11.8 % 10,142 241 18.6 % 1,598 1,015 1,121 34.9   MasterCard Credit and Charge Programs Worldwide less United States 394 7.3 % 13.3 % 346 13.8 % 4,085 48 10.2 % 202 470 532 United States 142 0.9 % 0.9 % 134 3.2 % 1,5767 -28.7 % 7148177 Worldwide 536 5.6 % 9.8 % 480 10.6 % 5,660 55 3.0 % 209 619 710   MasterCard Debit Programs Worldwide less United States 234 13.2 % 23.3 % 86 17.6 % 1,658 147 26.8 % 1,088 266 276 United States 149 13.5 % 13.5 % 110 12.9 % 2,82339 15.3 % 301131135 Worldwide 382 13.3 % 19.3 % 196 15.0 % 4,482 186 24.2 % 1,389 397 411   For the 9 Months ended September 30, 2012All MasterCard Credit,GDVGrowthGrowthPurchase VolumeGrowthPurchase Trans.CashVolumeGrowthCash Trans.AccountsCardsCharge and Debit Programs(Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.) APMEA $707 20.6 % 22.6 % $479 21.6 % 4,981 $228 24.7 % 1,710 331 359 Canada 93 5.2 % 7.8 % 85 8.8 % 944 8 -1.7 % 17 41 50 Europe 776 7.3 % 16.4 % 545 12.4 % 7,617 230 27.3 % 1,389 249 265 Latin America 218 7.6 % 19.5 % 131 24.0 % 2,81486 13.1 % 528115133 Worldwide less United States 1,794 12.1 % 18.6 % 1,241 16.7 % 16,356 553 23.3 % 3,644 736 808 United States 864 9.8 % 9.8 % 726 9.6 % 12,972138 10.9 % 912279313 Worldwide 2,658 11.4 % 15.6 % 1,967 14.0 % 29,327 691 20.6 % 4,556 1,015 1,121   MasterCard Credit and Charge Programs Worldwide less United States 1,134 10.3 % 15.5 % 995 16.2 % 11,739 139 10.5 % 582 470 532 United States 415 3.7 % 3.7 % 394 5.4 % 4,60821 -20.8 % 20148177 Worldwide 1,549 8.4 % 12.1 % 1,389 12.9 % 16,348 160 5.1 % 602 619 710   MasterCard Debit Programs Worldwide less United States 660 15.5 % 24.5 % 246 18.7 % 4,616 414 28.2 % 3,063 266 276 United States 449 16.2 % 16.2 % 332 15.1 % 8,363118 19.3 % 892131135 Worldwide 1,109 15.7 % 21.0 % 578 16.6 % 12,980 531 26.1 % 3,955 397 411   For the 3 Months ended September 30, 2011     All MasterCard Credit,GDVGrowthGrowthPurchase VolumeGrowthPurchase Trans.CashVolumeGrowthCash Trans.AccountsCardsCharge and Debit Programs(Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.) APMEA $212 35.4 % 25.4 % $144 27.2 % 1,483 $68 21.7 % 474 288 313 Canada 31 14.7 % 8.0 % 28 10.7 % 305 3 -13.8 % 6 40 48 Europe 259 25.1 % 17.3 % 185 13.7 % 2,328 74 27.6 % 412 213 228 Latin America 71 31.0 % 25.1 % 43 30.5 % 85628 17.5 % 170106129 Worldwide less United States 574 28.8 % 20.6 % 401 19.7 % 4,971 172 22.6 % 1,062 646 719 United States 271 13.7 % 13.7 % 227 13.5 % 4,04344 15.1 % 276271304 Worldwide 845 23.5 % 18.3 % 629 17.4 % 9,014 216 21.0 % 1,338 917 1,023   MasterCard Credit and Charge Programs Worldwide less United States 367 25.2 % 17.5 % 321 19.6 % 3,644 46 4.9 % 184 446 507 United States 140 7.2 % 7.2 % 130 7.0 % 1,55610 10.3 % 8145175 Worldwide 507 19.6 % 14.5 % 451 15.6 % 5,200 56 5.8 % 192 592 682   MasterCard Debit Programs Worldwide less United States 207 35.8 % 26.4 % 81 20.2 % 1,327 126 30.8 % 878 199 212 United States 131 21.6 % 21.6 % 97 23.5 % 2,48734 16.6 % 268126129 Worldwide 337 29.9 % 24.5 % 178 22.0 % 3,814 160 27.5 % 1,146 325 341   For the 9 Months ended September 30, 2011All MasterCard Credit,GDVGrowthGrowthPurchase VolumeGrowthPurchase Trans.CashVolumeGrowthCash Trans.AccountsCardsCharge and Debit Programs(Bil.)   (USD)   (Local)   (Bil.)   (Local)   (Mil.)   (Bil.)   (Local)   (Mil.)   (Mil.)   (Mil.) APMEA $586 33.1 % 23.5 % $397 25.4 % 4,171 $190 19.7 % 1,324 288 313 Canada 88 14.1 % 7.6 % 80 9.5 % 855 9 -7.3 % 16 40 48 Europe 723 23.9 % 16.7 % 524 13.6 % 6,573 198 25.9 % 1,148 213 228 Latin America 202 31.0 % 23.3 % 119 28.1 % 2,38183 17.0 % 503106129 Worldwide less United States 1,600 27.4 % 19.4 % 1,120 18.7 % 13,980 480 21.1 % 2,990 646 719 United States 787 9.9 % 9.9 % 662 10.8 % 11,675125 5.3 % 800271304 Worldwide 2,387 21.0 % 16.1 % 1,782 15.6 % 25,655 605 17.4 % 3,790 917 1,023   MasterCard Credit and Charge Programs Worldwide less United States 1,028 23.3 % 15.5 % 896 17.9 % 10,292 132 1.8 % 528 446 507 United States 400 5.8 % 5.8 % 374 6.0 % 4,44826 3.3 % 22145175 Worldwide 1,428 17.8 % 12.6 % 1,270 14.1 % 14,740 158 2.0 % 551 592 682   MasterCard Debit Programs Worldwide less United States 572 35.7 % 27.0 % 224 21.9 % 3,688 348 30.5 % 2,462 199 212 United States 387 14.4 % 14.4 % 288 17.6 % 7,22799 5.8 % 778126129 Worldwide 958 26.2 % 21.6 % 512 19.4 % 10,915 446 24.1 % 3,240 325 341   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 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. 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. In 2012, certain MasterCard Debit and Credit Programs in the Europe region have changed due to a reclassification of programs. There is no impact at the All MasterCard Programs level. In addition, Purchase Transactions for certain Credit Programs in the Latin America region have been restated due to revisions from several customers. MasterCard revenue is not impacted from these changes. Data for the comparable periods in 2012, 2011 and 2010 have been restated to be consistent with these approaches. Performance information for prior periods can be found in the "Investor Relations" section of MasterCard's website at www.mastercard.com. GAAP Reconciliation ($ in millions, except per share data)     Nine Months EndedSeptember 30, 2012Nine Months EndedSeptember 30, 2011Actual   Special ItemNon-GAAPActual   Provision for litigation settlement $ 20 $ (20) $ - $ -   Total operating expenses 2,458 (20) 2,438 2,263   Operating income 3,038 20 3,058 2,723   Operating Margin55.3%55.6%54.6%   Income before income taxes 3,038 20 3,058 2,758   Income tax expense 885 7  a  892 872   Net Income Attributable to MasterCard 2,154 13 2,167 1,887     Basic Net Income per Share $17.13 $0.10 $17.23 $14.71   Diluted Net Income per Share $17.07 $0.11 $17.18 $14.66   a- Tax effect of provision for litigation settlement MasterCard IncorporatedInvestor Relations:Barbara Gasper, 914-249-4565investor_relations@mastercard.comMedia Relations:Jim Issokson, 914-249-6286james_issokson@mastercard.com