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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________
FORM 8-K
_______________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):January 31, 2024
_______________________________________
Mastercard Incorporated
(Exact name of registrant as specified in its charter)
_______________________________________
Delaware001-3287713-4172551
(State or other jurisdiction
of incorporation)		(Commission File
Number)		(IRS Employer
Identification No.)
2000 Purchase Street10577
Purchase,NY
(Address of principal executive offices)(Zip Code)
(914)249-2000
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange of which registered
Class A Common StockMANew York Stock Exchange
2.1% Notes due 2027MA27New York Stock Exchange
1.0% Notes due 2029
MA29A
New York Stock Exchange
2.5% Notes due 2030MA30New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
1


Item 2.02 Results of Operations and Financial Condition

On January 31, 2024, Mastercard Incorporated issued an earnings release announcing financial results for its fourth quarter and full year 2023.

A copy of the earnings release is attached hereto as Exhibit 99.1. All information in the earnings release is furnished but not filed.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit NumberExhibit Description
104Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MASTERCARD INCORPORATED
Date:January 31, 2024By:
/s/ Adam Zitter
Adam Zitter
Corporate Secretary



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Earnings Release
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Mastercard Incorporated Reports Fourth Quarter and Full Year 2023 Financial Results

•Fourth quarter net income of $2.8 billion, and diluted earnings per share (EPS) of $2.97
•Fourth quarter adjusted net income of $3.0 billion, and adjusted diluted EPS of $3.18
•Fourth quarter net revenue of $6.5 billion, an increase of 13%, or 11% on a currency-neutral basis
•Fourth quarter gross dollar volume up 10% and purchase volume up 11%, on a local currency basis
Purchase, NY - January 31, 2024 - Mastercard Incorporated (NYSE: MA) today announced financial results for the fourth quarter and full year 2023.

"We delivered strong earnings and revenue growth for the full year 2023, driven by healthy consumer spending, cross-border volume growth of 24 percent1, and the solid execution of our strategy," said Michael Miebach, CEO of Mastercard. "In the fourth quarter, we signed the third U.S. regulated bank debit portfolio flip to our network within the last twelve months. This is just one illustration of our deal momentum across the globe as we continue to deliver a broad range of unique, diversified products and services to solve our customers’ needs."

Quarterly Results
Fourth Quarter Operating ResultsIncrease / (Decrease)
$ in billions, except per share data
Q4 2023Q4 2022Reported GAAPCurrency-neutral
Net revenue$6.5$5.813%11%
Operating expenses$3.2$2.621%20%
Operating income$3.4$3.26%4%
Operating margin51.5%54.7%(3.2) ppt(3.4) ppt
Effective income tax rate16.0%18.3%(2.3) ppt(2.5) ppt
Net income$2.8$2.511%9%
Diluted EPS$2.97$2.6213%12%
Key Fourth Quarter Non-GAAP Results 2
Increase / (Decrease)
$ in billions, except per share data

Q4 2023Q4 2022As adjustedCurrency-neutral
Net revenue$6.5$5.813%11%
Adjusted operating expenses$2.9$2.610%9%
Adjusted operating margin56.2%55.0%1.2 ppt1.0 ppt
Adjusted effective income tax rate17.0%18.2%(1.3) ppt(1.4) ppt
Adjusted net income$3.0$2.517%15%
Adjusted diluted EPS$3.18$2.6520%18%
1 Mastercard-branded programs only; on a local currency basis.
2 The Key Fourth Quarter Non-GAAP Results exclude the impact of gains and losses on the Company’s equity investments, special items as described on page 11 (“Fourth Quarter Special Items”) and/or the translational and transactional impact of currency and the related impact of the Company’s foreign exchange derivative contracts designated as cash flow hedging instruments. See page 11 for the Company’s non-GAAP adjustments and the reconciliation to GAAP reported amounts.


Q4 2023 Key Business Drivers
(YoY growth)
image12.jpg
Gross dollar volume
image7a.jpg
Cross-border volume
image8a.jpg
Switched transactions
(local currency basis)(local currency basis)
up 10%up 18%up 12%

The following information is provided to aid in understanding Mastercard’s fourth quarter 2023 results, versus the year ago period.
•Net revenue increased 13%, or 11% on a currency-neutral basis. The increase was attributable to growth in our payment network and our value-added services and solutions.
▪Payment network net revenue increased 9%, or 7% on a currency-neutral basis. Primary drivers of the increase were as follows:
•Gross dollar volume growth of 10%, on a local currency basis, to $2.4 trillion.
•Cross-border volume growth of 18% on a local currency basis.
•Switched transactions growth of 12%.
This increase in payment network net revenue includes growth in payment network rebates and incentives provided to customers. Payment network rebates and incentives increased 19%, or 18% on a currency-neutral basis, primarily due to an increase in our key drivers as well as new and renewed deals.
▪Value-added services and solutions net revenue increased 19%, or 17% on a currency-neutral basis. The increase was driven primarily by the continued growth of our cyber and intelligence solutions, driven by our underlying key drivers, the continued scaling of our fraud and security solutions and our identity and authentication solutions, as well as continued growth in our marketing, data analytics, consulting, and loyalty solutions.
•Total operating expenses increased 21%. Excluding the impact of Fourth Quarter Special Items, adjusted operating expenses increased 10%, or 9% on a currency-neutral basis primarily due to higher personnel costs.
•Other income (expense) was favorable $44 million versus the year ago period, primarily due to an increase in investment income and net gains in the current year versus net losses in the prior year related to realized and unrealized fair market value adjustments on marketable and nonmarketable equity securities, partially offset by increased interest expense related to our debt portfolio and losses on sales of certain assets. Adjusted other income (expense) was unfavorable $1 million versus the prior year, primarily due to increased interest expense related to our debt portfolio and losses on sales of certain assets, partially offset by an increase in investment income.
•The effective tax rate for the fourth quarter of 2023 was 16.0%, versus 18.3% for the comparable period in 2022. The adjusted effective tax rate for the fourth quarter of 2023 was 17.0%, versus 18.2% for the comparable period in 2022. Both the as reported and as adjusted effective tax rates were lower in 2023 primarily due to a tax benefit recognized in the current period associated with certain tax capital losses.
•As of December 31, 2023, the Company’s customers had issued 3.3 billion Mastercard and Maestro-branded cards.


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Full Year Results
Full Year Operating ResultsIncrease / (Decrease)
$ in billions, except per share data
20232022Reported GAAPCurrency-neutral
Net revenue$25.1$22.213%13%
Operating expenses$11.1$10.011%11%
Operating income$14.0$12.314%14%
Operating margin55.8%55.2%0.7 ppt0.6 ppt
Effective income tax rate17.9%15.4%2.6 ppt2.4 ppt
Net income$11.2$9.913%13%
Diluted EPS$11.83$10.2216%15%
Key Full Year Non-GAAP Results 1
Increase / (Decrease)
$ in billions, except per share data20232022As adjustedCurrency-neutral
Adjusted net revenue$25.1$22.213%13%
Adjusted operating expenses$10.6$9.510%11%
Adjusted operating margin58.0%57.0%1.0 ppt0.9 ppt
Adjusted effective income tax rate18.5%15.7%2.8 ppt2.7 ppt
Adjusted net income$11.6$10.312%12%
Adjusted diluted EPS$12.26$10.6515%15%
1. The Key Full Year Non-GAAP Results exclude the impact of gains and losses on the Company’s equity investments, special items as described on page 12 (“Full Year Special Items”) and/or the translational and transactional impact of currency and the related impact of the Company’s foreign exchange derivative contracts designated as cash flow hedging instruments. See page 12 for the Company’s non-GAAP adjustments and the reconciliation to GAAP reported amounts.
Full Year 2023 Key Business Drivers
(YoY growth)
image12.jpg
Gross dollar volume
image7a.jpg
Cross-border volume
image8a.jpg
Switched transactions
(local currency basis)(local currency basis)
up 12%up 24%up 14%
The following information is provided to aid in understanding Mastercard’s full year 2023 results, versus the year ago period. As a reminder, we suspended our business operations in Russia in March 2022.
•Net revenue increased 13%, as reported and on a currency-neutral basis. Excluding the impact of Full Year Special Items, adjusted net revenue increased 13%, as reported and on a currency-neutral basis. The increase was attributable to growth in our payment network and our value-added services and solutions.
▪Payment network net revenue increased 10%, as reported and on a currency-neutral basis. Primary drivers of the increase were as follows:
•Gross dollar volume growth of 12%, on a local currency basis, to $9.0 trillion.
•Cross-border volume growth of 24% on a local currency basis.
•Switched transactions growth of 14%.
This increase in payment network net revenue includes growth in payment network rebates and incentives provided to customers. Payment network rebates and incentives increased 22%, as reported and on a currency-neutral basis, primarily due to an increase in our key drivers as well as new and renewed deals.
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▪Value-added services and solutions net revenue increased 18%, or 17% on a currency-neutral basis. The increase was driven primarily by the continued growth of our cyber and intelligence solutions, driven by growth of our underlying key drivers and the scaling of our fraud and security solutions, as well as growth of our consulting, marketing, and loyalty solutions.
•Total operating expenses increased 11%. Excluding the impact of Full Year Special Items, adjusted operating expenses increased 10%, or 11% on a currency-neutral basis. This includes a 1 percentage point increase from acquisitions. The remaining increase was primarily due to higher personnel costs.
•Other income (expense) was favorable $163 million, primarily due to an increase in investment income and lower mark-to-market losses on our equity investments in 2023, partially offset by increased interest expense related to our debt portfolio. Adjusted other income (expense) was favorable $79 million versus the prior year, primarily due to an increase in investment income, partially offset by increased interest expense related to our debt portfolio.
•The effective tax rate for 2023 was 17.9%, versus 15.4% for the comparable period in 2022. The adjusted effective tax rate for 2023 was 18.5%, versus 15.7% for the comparable period in 2022. Both the as reported and as adjusted effective tax rates were higher in 2023 primarily due to the release of a $333 million valuation allowance in 2022 and the establishment of a $327 million valuation allowance in 2023, partially offset by the ability to now claim more U.S. foreign tax credits generated in 2022 and 2023.
Return of Capital to Shareholders
During the fourth quarter of 2023, Mastercard repurchased 4.5 million shares at a cost of $1.8 billion and paid $534 million in dividends.
During the full year 2023, Mastercard repurchased 23.8 million shares at a cost of $9.0 billion and paid $2.2 billion in dividends.
Quarter-to-date through January 26, the Company repurchased 1.4 million shares at a cost of $586 million, which leaves $13.6 billion remaining under the approved share repurchase programs.
Fourth Quarter and Full Year 2023 Financial Results Conference Call Details
At 9:00 a.m. ET today, the Company will host a conference call to discuss its fourth quarter 2023 results. The dial-in information for this call is 1-888-330-2508 (Toll-free) and 1-240-789-2735 (Toll dial-in), using passcode 6451878. A replay of the call will be available for 30 days and can be accessed by dialing 1-800-770-2030 (Toll-free) and 1-647-362-9199 (Toll dial-in), using passcode 6451878.
A live audio webcast of this call, along with presentation slides, can also be accessed through the Investor Relations section of the Company’s website at investor.mastercard.com.
Forward-Looking Statements
This press release contains forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements. When used in this press release, the words “believe”, “expect”, “could”, “may”, “would”, “will”, “trend” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements that relate to the Company’s future prospects, developments and business strategies. We caution you to not place undue reliance on these forward-looking statements, as they speak only as of the date they are made. 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
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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.
Many factors and uncertainties relating to our operations and business environment, all of which are difficult to predict and many of which are outside of our control, influence whether any forward-looking statements can or will be achieved. Any one of those factors could cause our actual results to differ materially from those expressed or implied in writing in any forward-looking statements made by Mastercard or on its behalf, including, but not limited to, the following factors:
•regulation directly related to the payments industry (including regulatory, legislative and litigation activity with respect to interchange rates and surcharging)
•the impact of preferential or protective government actions
•regulation of privacy, data, security and the digital economy
•regulation that directly or indirectly applies to us based on our participation in the global payments industry (including anti-money laundering, countering the financing of terrorism, economic sanctions and anti-corruption, account-based payments systems, and issuer and acquirer practices regulation)
•the impact of changes in tax laws, as well as regulations and interpretations of such laws or challenges to our tax positions
•potential or incurred liability and limitations on business related to any litigation or litigation settlements
•the impact of competition in the global payments industry (including disintermediation and pricing pressure)
•the challenges relating to rapid technological developments and changes
•the challenges relating to operating a real-time account-based payments system and to working with new customers and end users
•the impact of information security incidents, account data breaches or service disruptions
•issues related to our relationships with our stakeholders (including loss of substantial business from significant customers, competitor relationships with our customers, consolidation amongst our customers, merchants’ continued focus on acceptance costs and unique risks from our work with governments)
•the impact of global economic, political, financial and societal events and conditions, including adverse currency fluctuations and foreign exchange controls
•reputational impact, including impact related to brand perception and lack of visibility of our brands in products and services
•the impact of environmental, social and governance matters and related stakeholders reaction
•the inability to attract, hire and retain a highly qualified and diverse workforce, or maintain our corporate culture
•issues related to acquisition integration, strategic investments and entry into new businesses
•exposure to loss or illiquidity due to our role as guarantor and other contractual obligations
•issues related to our Class A common stock and corporate governance structure
For additional information on these and other factors that could cause the Company’s actual results to differ materially from expected results, please see the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and any subsequent reports on Forms 10-Q and 8-K.


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About Mastercard (NYSE: MA)
Mastercard is a technology company in the global payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.
www.mastercard.com

Contacts:
Investor Relations:Media Relations:
Devin Corr or Jud StaniarSeth Eisen
investor.relations@mastercard.comSeth.Eisen@mastercard.com
914-249-4565914-249-3153
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Consolidated Statement of Operations (Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
(in millions, except per share data)(in millions, except per share data)
Net Revenue$6,548 $5,817 $25,098 $22,237 
Operating Expenses:
General and administrative2,399 2,218 8,927 8,078 
Advertising and marketing264 216 825 789 
Depreciation and amortization205 184 799 750 
Provision for litigation308 15 539 356 
Total operating expenses3,176 2,633 11,090 9,973 
Operating income3,372 3,184 14,008 12,264 
Other Income (Expense):
Investment income89 33 274 61 
Gains (losses) on equity investments, net34 (12)(61)(145)
Interest expense(148)(127)(575)(471)
Other income (expense), net(26)11 (7)23 
Total other income (expense)(51)(95)(369)(532)
Income before income taxes3,321 3,089 13,639 11,732 
Income tax expense530 564 2,444 1,802 
Net Income$2,791 $2,525 $11,195 $9,930 
Basic Earnings per Share$2.98 $2.63 $11.86 $10.26 
Basic weighted-average shares outstanding936 960 944 968 
Diluted Earnings per Share$2.97 $2.62 $11.83 $10.22 
Diluted weighted-average shares outstanding939 963 946 971 
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Consolidated Balance Sheet (Unaudited)
December 31, 2023December 31, 2022
(in millions, except per share data)
Assets
Current assets:
Cash and cash equivalents$8,588 $7,008 
Restricted cash for litigation settlement— 589 
Restricted security deposits held for customers1,845 1,568 
Investments592 400 
Accounts receivable4,060 3,425 
Settlement assets1,233 1,270 
Prepaid expenses and other current assets2,643 2,346 
Total current assets18,961 16,606 
Property, equipment and right-of-use assets, net of accumulated depreciation and
     amortization of $2,237 and $1,904, respectively
2,061 2,006 
Deferred income taxes1,355 1,151 
Goodwill7,660 7,522 
Other intangible assets, net of accumulated amortization of $2,209 and $1,960,
     respectively
4,086 3,859 
Other assets8,325 7,580 
Total Assets$42,448 $38,724 
Liabilities, Redeemable Non-controlling Interests and Equity
Current liabilities:
Accounts payable$834 $926 
Settlement obligations1,399 1,111 
Restricted security deposits held for customers1,845 1,568 
Accrued litigation723 1,094 
Accrued expenses8,517 7,801 
Short-term debt1,337 274 
Other current liabilities1,609 1,397 
Total current liabilities16,264 14,171 
Long-term debt14,344 13,749 
Deferred income taxes369 393 
Other liabilities4,474 4,034 
Total Liabilities35,451 32,347 
Commitments and Contingencies
Redeemable Non-controlling Interests22 21 
Stockholders’ Equity
Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,402 and 1,399 shares issued and 927 and 948 shares outstanding, respectively
— — 
Class B common stock, $0.0001 par value; authorized 1,200 shares, 7 and 8 shares issued and outstanding, respectively
— — 
Additional paid-in-capital5,893 5,298 
Class A treasury stock, at cost, 475 and 451 shares, respectively
(60,429)(51,354)
Retained earnings62,564 53,607 
Accumulated other comprehensive income (loss)(1,099)(1,253)
Mastercard Incorporated Stockholders' Equity
6,929 6,298 
Non-controlling interests46 58 
Total Equity6,975 6,356 
Total Liabilities, Redeemable Non-controlling Interests and Equity$42,448 $38,724 
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8

Consolidated Statement of Cash Flows (Unaudited)
For the Years Ended December 31,
20232022
(in millions)
Operating Activities
Net income$11,195 $9,930 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of customer incentives1,622 1,586 
Depreciation and amortization799 750 
(Gains) losses on equity investments, net61 145 
Share-based compensation460 295 
Deferred income taxes(236)(651)
Other22 44 
Changes in operating assets and liabilities:
Accounts receivable(546)(481)
Income taxes receivable(171)12 
Settlement assets40 48 
Prepaid expenses(2,438)(2,175)
Accrued litigation and legal settlements(375)240 
Restricted security deposits held for customers277 (305)
Accounts payable(99)190 
Settlement obligations282 201 
Accrued expenses571 1,188 
Long-term taxes payable(129)(121)
Net change in other assets and liabilities645 299 
Net cash provided by operating activities11,980 11,195 
Investing Activities
Purchases of investment securities available-for-sale(300)(267)
Purchases of investments held-to-maturity(347)(239)
Proceeds from sales of investment securities available-for-sale87 54 
Proceeds from maturities of investment securities available-for-sale191 211 
Proceeds from maturities of investments held-to-maturity157 265 
Purchases of property and equipment(371)(442)
Capitalized software(717)(655)
Purchases of equity investments(89)(88)
Proceeds from sales of equity investments44 7 
Acquisition of businesses, net of cash acquired— (313)
Other investing activities(6)(3)
Net cash used in investing activities(1,351)(1,470)
Financing Activities
Purchases of treasury stock(9,032)(8,753)
Dividends paid(2,158)(1,903)
Proceeds from debt, net1,554 1,123 
Payment of debt— (724)
Acquisition of redeemable non-controlling interests— (4)
Tax withholdings related to share-based payments(89)(141)
Cash proceeds from exercise of stock options237 90 
Other financing activities— (16)
Net cash used in financing activities(9,488)(10,328)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents128 (103)
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents1,269 (706)
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period9,196 9,902 
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period$10,465 $9,196 
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Non-GAAP Financial Information
Mastercard discloses the following non-GAAP financial measures: adjusted net revenue, adjusted operating expenses, adjusted operating margin, adjusted other income (expense), adjusted effective income tax rate, adjusted net income and adjusted diluted earnings per share (as well as related applicable growth rates versus the comparable period in the prior year). These non-GAAP financial measures exclude the impact of gains and losses on the Company’s equity investments which includes mark-to-market fair value adjustments, impairments and gains and losses upon disposition, as well as the related tax impacts. These non-GAAP financial measures also exclude the impact of special items, where applicable, which represent litigation judgments and settlements and certain one-time items, as well as the related tax impacts. The Company excludes these Special Items because management evaluates the underlying operations and performance of the Company separately from these recurring and nonrecurring items.
In addition, the Company presents growth rates adjusted for the impact of currency, which is a non-GAAP financial measure. Currency-neutral growth rates are calculated by remeasuring the prior period’s results using the current period’s exchange rates for both the translational and transactional impacts on operating results, as well as removing the related impact of the Company’s foreign exchange derivative contracts designated as cash flow hedging instruments. The impact of currency translation represents the effect of translating operating results where the functional currency is different from the Company’s U.S. dollar reporting currency. The impact of the transactional currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency of the entity. The impact of the related realized gains and losses resulting from the Company’s foreign exchange derivative contracts designated as cash flow hedging instruments is recognized in the respective financial statement line item on the statement of operations when the underlying forecasted transactions impact earnings. The Company believes the presentation of currency-neutral growth rates provides relevant information to facilitate an understanding of its operating results.
The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation.
The Company includes reconciliations of the requisite non-GAAP financial measures to the most directly comparable GAAP financial measures. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s related financial results prepared in accordance with GAAP.

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Non-GAAP Reconciliations (QTD)
Three Months Ended December 31, 2023
Net revenue Operating expensesOperating marginOther income (expense)Effective income tax rate Net income Diluted earnings per share
($ in millions, except per share data)
Reported - GAAP$6,548 $3,176 51.5 %$(51)16.0 %$2,791 $2.97 
(Gains) losses on equity investments 1
******(34)(0.1)%(27)(0.03)
Litigation provisions 2
 ** (308)4.7 %**1.1 %221 0.24 
Adjusted - Non-GAAP$6,548 $2,868 56.2 %$(85)17.0 %$2,985 $3.18 

Three Months Ended December 31, 2022
Net revenue Operating expensesOperating marginOther income (expense)Effective income tax rate Net income Diluted earnings per share
($ in millions, except per share data)
Reported - GAAP$5,817 $2,633 54.7 %$(95)18.3 %$2,525 $2.62 
(Gains) losses on equity investments 1
******12 (0.1)%12 0.01 
Litigation provisions 3
**(15)0.3 %**— %12 0.01 
Adjusted - Non-GAAP$5,817 $2,617 55.0 %$(84)18.2 %$2,548 $2.65 

Three Months Ended December 31, 2023 as compared to the Three Months Ended December 31, 2022
Increase/(Decrease)
Net revenue Operating expensesOperating marginEffective income tax rate Net income Diluted earnings per share
Reported - GAAP13 %21 %(3.2) ppt(2.3) ppt11 %13 %
(Gains) losses on equity investments 1
******—  ppt(2)%(2)%
Litigation provisions 2,3
**(11)%4.4  ppt1.0  ppt8 %8 %
Adjusted - Non-GAAP13 %10 %1.2  ppt(1.3) ppt17 %20 %
Currency impact 4
(2)%(1)%(0.3) ppt(0.2) ppt(2)%(2)%
Adjusted - Non-GAAP - currency-neutral11 %9 %1.0  ppt(1.4) ppt15 %18 %
Note:    Tables may not sum due to rounding.
**    Not applicable

Gains and Losses on Equity Investments
1.Q4’23 net pre-tax gains of $34 million and Q4’22 net pre-tax losses of $12 million primarily related to realized and unrealized fair market value adjustments on marketable and nonmarketable equity securities.
Fourth Quarter Special Items
2.Q4’23 pre-tax charges of $308 million related to litigation provisions which included pre-tax charges of $175 million as a result of settlements with a number of U.K. and Pan-European merchants and $133 million as a result of a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation.
3.Q4’22 pre-tax charges of $15 million as a result of settlements (both final and agreements in principle) with a number of U.K. merchants.

Other Notes
4.Represents the translational and transactional impact of currency and the related impact of the Company’s foreign exchange derivative contracts designated as cash flow hedging instruments.

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11

Non-GAAP Reconciliations (Full Year)
Twelve Months Ended December 31, 2023
Net revenue Operating expensesOperating marginOther income (expense)Effective income tax rate Net income Diluted earnings per share
($ in millions, except per share data)
Reported - GAAP$25,098 $11,090 55.8 %$(369)17.9 %$11,195 $11.83 
(Gains) losses on equity investments 1
 **  **  ** 61 0.1 %36 0.04 
Litigation Provisions 2
 ** (539)2.1 % ** 0.5 %376 0.40 
Adjusted - Non-GAAP$25,098 $10,551 58.0 %$(308)18.5 %$11,607 $12.26 

Twelve Months Ended December 31, 2022
Net revenue Operating expensesOperating marginOther income (expense)Effective income tax rate Net income Diluted earnings per share
($ in millions, except per share data)
Reported - GAAP$22,237 $9,973 55.2 %$(532)15.4 %$9,930 $10.22 
(Gains) losses on equity investments 1
******145 — %126 0.13 
Litigation provisions 3
**(356)1.6 %**0.3 %263 0.27 
Russia-related impacts 4
(37)(67)0.2 %**— %24 0.02 
Adjusted - Non-GAAP$22,200 $9,549 57.0 %$(387)15.7 %$10,342 $10.65 

Twelve Months Ended December 31, 2023 as compared to the Twelve Months Ended December 31, 2022
Increase/(Decrease)
Net revenue Operating expensesOperating marginEffective income tax rate Net income Diluted earnings per share
Reported - GAAP13 %11 %0.7  ppt2.6  ppt13 %16 %
(Gains) losses on equity investments 1
** **  ** 0.1  ppt(1)%(1)%
Litigation provisions 2, 3
**(1)%0.5  ppt0.1  ppt1 %1 %
Russia-related impacts 4
— %1 %(0.1) ppt—  ppt— %— %
Adjusted - Non-GAAP13 %10 %1.0  ppt2.8  ppt12 %15 %
Currency impact 5
— %— %(0.1) ppt(0.1) ppt— %— %
Adjusted - Non-GAAP - currency-neutral13 %11 %0.9  ppt2.7  ppt12 %15 %
Note:    Tables may not sum due to rounding.
**    Not applicable

Gains and Losses on Equity Investments
1.Full Year 2023 and 2022 net pre-tax losses of $61 million and $145 million primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities.
Full Year Special Items
2.Full Year 2023 pre-tax charges of $539 million related to litigation provisions which included pre-tax charges of $344 million as a result of changes in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation, and $195 million as a result of settlements with a number of U.K. and Pan-European merchants.
3.Full Year 2022 pre-tax charges of $356 million related to litigation provisions which included pre-tax charges of $223 million as a result of settlements (both final and agreements in principle) with a number of U.K. merchants and $133 million as a result of a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation.
4.Full Year 2022 net pre-tax charge of $30 million directly related to imposed sanctions and the suspension of our business operations in Russia. The net charge was comprised of general and administrative expenses of $67 million, primarily related to incremental employee-related costs and reserves on uncollectible balances with certain sanctioned customers. This charge was offset by net benefits of $37 million in net revenue, primarily related to a reduction in payment network rebates and incentives liabilities as a result of lower estimates of customer performance for certain customer business agreements due to the suspension of our business operations in Russia.
Other Notes
5.Represents the translational and transactional impact of currency and the related impact of the Company’s foreign exchange derivative contracts designated as cash flow hedging instruments.
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12

Mastercard Incorporated Operating Performance
For the 3 Months Ended December 31, 2023
GDV (Bil.)Growth (USD)Growth (Local)Purchase Volume (Bil.)Growth (Local)Purchase Trans. (Mil.)Purchase Trans. GrowthCash Volume (Bil.)Growth (Local)Cash Trans. (Mil.)
Cards (Mil.)
All Mastercard Credit, Charge and Debit Programs
APMEA$587 5.6 %7.7 %$436 9.9 %10,772 11.3 %$151 1.7 %1,510 940 
Canada68 7.9 %8.2 %66 7.6 %1,062 11.9 %2 29.0 %8 80 
Europe761 17.5 %15.8 %602 17.7 %17,195 16.6 %159 9.1 %988 815 
Latin America208 23.6 %17.6 %148 20.2 %6,060 17.1 %60 11.6 %460 445 
Worldwide less United States1,625 13.2 %12.6 %1,253 14.6 %35,089 14.9 %372 6.5 %2,965 2,280 
United States727 4.2 %4.2 %667 4.5 %10,217 5.4 %60 0.4 %279 664 
Worldwide2,352 10.3 %9.9 %1,920 10.9 %45,307 12.6 %432 5.6 %3,245 2,944 
Mastercard Credit and Charge Programs
Worldwide less United States733 12.7 %13.4 %693 13.3 %15,341 12.8 %39 15.6 %174 792 
United States382 5.5 %5.5 %372 5.5 %4,022 6.6 %10 2.9 %9 325 
Worldwide1,115 10.1 %10.5 %1,065 10.4 %19,363 11.4 %49 12.8 %184 1,117 
Mastercard Debit Programs
Worldwide less United States892 13.6 %12.0 %560 16.2 %19,748 16.5 %333 5.5 %2,791 1,489 
United States345 2.8 %2.8 %295 3.3 %6,195 4.6 %50 (0.1)%270 338 
Worldwide1,237 10.4 %9.2 %855 11.4 %25,944 13.5 %383 4.7 %3,061 1,827 

For the 12 Months Ended December 31, 2023
GDV (Bil.)Growth (USD)Growth (Local)Purchase Volume (Bil.)Growth (Local)Purchase Trans. (Mil.)Purchase Trans. GrowthCash Volume (Bil.)Growth (Local)Cash Trans. (Mil.)Cards (Mil.)
All Mastercard Credit, Charge and Debit Programs
APMEA$2,287 3.4 %8.5 %$1,690 11.0 %40,639 12.3 %$597 2.0 %6,021 940 
Canada257 5.8 %9.6 %250 9.2 %3,984 12.8 %8 24.4 %28 80 
Europe2,902 19.3 %20.3 %2,285 23.3 %64,477 19.4 %617 10.2 %3,897 815 
Latin America746 22.0 %17.8 %529 19.2 %22,144 16.2 %217 14.3 %1,722 445 
Worldwide less United States6,193 12.6 %14.9 %4,754 17.4 %131,244 16.4 %1,440 7.3 %11,668 2,280 
United States2,837 5.9 %5.9 %2,591 6.2 %39,582 6.2 %245 2.6 %1,142 664 
Worldwide9,030 10.4 %11.9 %7,345 13.2 %170,826 13.9 %1,685 6.6 %12,810 2,944 
Mastercard Credit and Charge Programs
Worldwide less United States2,818 11.2 %14.4 %2,666 14.3 %57,604 12.1 %152 16.4 %673 792 
United States1,473 8.6 %8.6 %1,432 8.4 %15,367 9.6 %41 14.3 %36 325 
Worldwide4,291 10.3 %12.3 %4,098 12.1 %72,972 11.5 %193 16.0 %709 1,117 
Mastercard Debit Programs
Worldwide less United States3,375 13.8 %15.3 %2,087 21.7 %73,640 20.0 %1,288 6.3 %10,995 1,489 
United States1,364 3.1 %3.1 %1,160 3.6 %24,214 4.1 %204 0.5 %1,106 338 
Worldwide4,739 10.5 %11.5 %3,247 14.6 %97,854 15.7 %1,491 5.4 %12,101 1,827 
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.
Mastercard Incorporated Operating Performance (continued)
For the 3 Months ended December 31, 2022
GDV (Bil.)Growth (USD)Growth (Local)Purchase Volume (Bil.)Growth (Local)Purchase Trans. (Mil.)Purchase Trans. GrowthCash Volume (Bil.)Growth (Local)Cash Trans. (Mil.)Cards (Mil.)
All Mastercard Credit, Charge and Debit Programs
APMEA$556 (4.4)%6.5 %$405 8.7 %9,679 12.1 %$151 0.8 %1,575 900 
Canada63 4.6 %12.7 %62 12.4 %949 10.9 %2 23.0 %6 72 
Europe647 (5.1)%5.6 %502 12.8 %14,744 (6.7)%145 (13.5)%993 722 
Latin America169 21.1 %20.9 %119 23.3 %5,176 19.2 %50 15.7 %421 378 
Worldwide less United States1,435 (1.9)%7.8 %1,087 12.2 %30,548 3.1 %348 (4.0)%2,995 2,073 
United States698 7.1 %7.1 %638 7.9 %9,695 3.8 %60 — %285 623 
Worldwide2,133 0.9 %7.6 %1,726 10.6 %40,243 3.3 %407 (3.4)%3,280 2,696 
Mastercard Credit and Charge Programs
Worldwide less United States650 (1.4)%9.1 %615 10.0 %13,601 4.8 %35 (4.2)%166 756 
United States362 13.9 %13.9 %353 13.7 %3,775 11.8 %10 25.4 %9 306 
Worldwide1,012 3.6 %10.8 %968 11.3 %17,376 6.3 %44 0.9 %175 1,062 
Mastercard Debit Programs
Worldwide less United States785 (2.4)%6.8 %472 15.3 %16,947 1.7 %313 (4.0)%2,829 1,316 
United States336 0.7 %0.7 %286 1.5 %5,920 (0.7)%50 (3.7)%276 317 
Worldwide1,121 (1.5)%4.9 %758 9.7 %22,867 1.1 %363 (3.9)%3,105 1,634 
For the 12 Months ended December 31, 2022
GDV (Bil.)Growth (USD)Growth (Local)Purchase Volume (Bil.)Growth (Local)Purchase Trans. (Mil.)Purchase Trans. GrowthCash Volume (Bil.)Growth (Local)Cash Trans. (Mil.)Cards (Mil.)
All Mastercard Credit, Charge and Debit Programs
APMEA$2,213 2.5 %10.5 %$1,597 13.3 %36,175 15.6 %$615 3.7 %6,168 900 
Canada243 13.7 %18.3 %237 18.5 %3,531 14.6 %6 9.9 %22 72 
Europe2,433 (0.3)%12.1 %1,864 20.4 %53,997 (3.5)%568 (8.5)%3,881 722 
Latin America612 28.0 %29.2 %432 33.0 %19,057 28.9 %180 20.7 %1,547 378 
Worldwide less United States5,501 3.9 %13.4 %4,131 18.6 %112,761 7.3 %1,370 — %11,619 2,073 
United States2,679 10.1 %10.1 %2,440 12.2 %37,277 6.3 %239 (7.1)%1,160 623 
Worldwide8,180 5.9 %12.3 %6,571 16.1 %150,038 7.1 %1,609 (1.1)%12,779 2,696 
Mastercard Credit and Charge Programs
Worldwide less United States2,535 5.8 %15.4 %2,401 16.4 %51,404 10.5 %134 (1.1)%632 756 
United States1,357 21.9 %21.9 %1,321 21.9 %14,024 18.4 %36 25.2 %34 306 
Worldwide3,891 10.9 %17.6 %3,722 18.3 %65,428 12.1 %170 3.5 %666 1,062 
Mastercard Debit Programs
Worldwide less United States2,966 2.4 %11.7 %1,730 21.8 %61,357 4.8 %1,236 0.1 %10,987 1,316 
United States1,323 0.2 %0.2 %1,120 2.5 %23,253 0.1 %203 (11.2)%1,126 317 
Worldwide4,289 1.7 %7.9 %2,850 13.4 %84,610 3.5 %1,439 (1.6)%12,113 1,634 
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.
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13

Footnote
The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions and cards on a regional and global basis for Mastercard™-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 and includes the impact of balance transfers and convenience checks 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 products are comprised of credit, charge, debit and prepaid programs, and data relating to each type of program is included in the tables. The tables include information with respect to transactions involving Mastercard-branded cards that are not switched 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 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 switching systems. The data set forth in the 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 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 or Mastercard’s customers. Starting in the first quarter of 2022, data related to sanctioned Russian banks was not reported to us and therefore such amounts are not included. Subsequent to the suspension of our business operations in Russia in March 2022, there is no Russian data to be reported.
Performance information for prior periods can be found in the Investor Relations section of the Mastercard website at investor.mastercard.com.
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14
v3.24.0.1
Cover
Jan. 31, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jan. 31, 2024
Entity Registrant Name Mastercard Incorporated
Entity Incorporation, State or Country Code DE
Entity File Number 001-32877
Entity Tax Identification Number 13-4172551
Entity Address, Address Line One 2000 Purchase Street
Entity Address, Postal Zip Code 10577
Entity Address, City or Town Purchase,
Entity Address, State or Province NY
City Area Code (914)
Local Phone Number 249-2000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001141391
Class A Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Class A Common Stock
Trading Symbol MA
Security Exchange Name NYSE
2.1% Notes due 2027  
Entity Information [Line Items]  
Title of 12(b) Security 2.1% Notes due 2027
Trading Symbol MA27
Security Exchange Name NYSE
1% Notes Due 2029  
Entity Information [Line Items]  
Title of 12(b) Security 1.0% Notes due 2029
Trading Symbol MA29A
Security Exchange Name NYSE
2.5% Notes due 2030  
Entity Information [Line Items]  
Title of 12(b) Security 2.5% Notes due 2030
Trading Symbol MA30
Security Exchange Name NYSE
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