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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
Or 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission file number: 001-32877
ma-20210930_g1.jpg
Mastercard Incorporated
(Exact name of registrant as specified in its charter)
Delaware13-4172551
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification Number)
2000 Purchase Street10577
Purchase,NY(Zip Code)
(Address of principal executive offices)
(914) 249-2000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange of which registered
Class A Common Stock, par value $0.0001 per share
MA
New York Stock Exchange
1.1% Notes due 2022
MA22
New York Stock Exchange
2.1% Notes due 2027
MA27
New York Stock Exchange
2.5% Notes due 2030
MA30
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files)
Yes


No


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
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.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act)
Yes
No
As of October 25, 2021, there were 974,709,101 shares outstanding of the registrant’s Class A common stock, par value $0.0001 per share; and 7,848,294 shares outstanding of the registrant’s Class B common stock, par value $0.0001 per share.



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MASTERCARD INCORPORATED FORM 10-Q
TABLE OF CONTENTS
PART I
PART II
-

2 MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q


In this Report on Form 10-Q (“Report”), references to the “Company,” “Mastercard,” “we,” “us” or “our” refer to the business conducted by Mastercard Incorporated and its consolidated subsidiaries, including our operating subsidiary, Mastercard International Incorporated, and to the Mastercard brand.
Forward-Looking Statements
This Report 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 Report, 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.
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, counter financing of terrorism, economic sanctions and anti-corruption; account-based payment systems; and issuer practice 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 the global coronavirus (COVID-19) pandemic and measures taken in response
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 payment 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, banking industry consolidation, merchants’ continued focus on acceptance costs and unique risks from our work with governments)
exposure to loss or illiquidity due to our role as guarantor and other contractual obligations
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 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
issues related to our Class A common stock and corporate governance structure
Please see a complete discussion of these risk factors in Part I, Item 1A - Risk Factors of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. We caution you that the important factors referenced above may not contain all of the factors that are important to you. Our forward-looking statements speak only as of the date of this Report or as of the date they are made, and we undertake no obligation to update our forward-looking statements.

MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q 3


PART I



PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Item 1. Consolidated financial statements (unaudited)
Mastercard Incorporated
Index to consolidated financial statements (unaudited)
Page
Consolidated Statement of Operations — Three and Nine Months Ended September 30, 2021 and 2020
Consolidated Statement of Comprehensive Income — Three and Nine Months Ended September 30, 2021 and 2020
Consolidated Balance Sheet — September 30, 2021 and December 31, 2020
Consolidated Statement of Changes in Equity Three and Nine Months Ended September 30, 2021 and 2020
Consolidated Statement of Cash Flows — Nine Months Ended September 30, 2021 and 2020

MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q 5


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Statement of Operations (Unaudited)
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
 (in millions, except per share data)
Net Revenue$4,985 $3,837 $13,668 $11,181 
Operating Expenses:
General and administrative1,831 1,423 5,225 4,285 
Advertising and marketing222 168 557 415 
Depreciation and amortization188 141 537 430 
Provision for litigation27  94 28 
Total operating expenses2,268 1,732 6,413 5,158 
Operating income2,717 2,105 7,255 6,023 
Other Income (Expense):
Investment income5 3 9 27 
Gains (losses) on equity investments, net197 (91)534 (190)
Interest expense(110)(105)(323)(275)
Other income (expense), net7 3 9 7 
Total other income (expense)99 (190)229 (431)
Income before income taxes2,816 1,915 7,484 5,592 
Income tax expense402 402 1,176 966 
Net Income$2,414 $1,513 $6,308 $4,626 
Basic Earnings per Share$2.45 $1.51 $6.37 $4.61 
Basic weighted-average shares outstanding986 1,001 990 1,003 
Diluted Earnings per Share$2.44 $1.51 $6.35 $4.59 
Diluted weighted-average shares outstanding990 1,005 994 1,008 

The accompanying notes are an integral part of these consolidated financial statements.

6 MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Statement of Comprehensive Income (Unaudited)
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
 (in millions)
Net Income$2,414 $1,513 $6,308 $4,626 
Other comprehensive income (loss):
Foreign currency translation adjustments(219)228 (274)(17)
Income tax effect9 (8)33 21 
Foreign currency translation adjustments, net of income tax effect(210)220 (241)4 
Translation adjustments on net investment hedges90 (73)162 (82)
Income tax effect(20)16 (36)18 
Translation adjustments on net investment hedges, net of income tax effect70 (57)126 (64)
Cash flow hedges2  1 (189)
Income tax effect   42 
Reclassification adjustments for cash flow hedges1 2 5 3 
Income tax effect (1)(1)(1)
Cash flow hedges, net of income tax effect3 1 5 (145)
Defined benefit pension and other postretirement plans    
Income tax effect    
Reclassification adjustment for defined benefit pension and other postretirement plans  (1)(1)
Income tax effect    
Defined benefit pension and other postretirement plans, net of income tax effect  (1)(1)
Investment securities available-for-sale
(2)2  (1)
Income tax effect1    
Investment securities available-for-sale, net of income tax effect(1)2  (1)
Other comprehensive income (loss), net of tax(138)166 (111)(207)
Comprehensive Income$2,276 $1,679 $6,197 $4,419 

The accompanying notes are an integral part of these consolidated financial statements.


MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q 7


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Balance Sheet (Unaudited)
September 30, 2021December 31, 2020
 (in millions, except per share data)
Assets
Current assets:
Cash and cash equivalents$6,406 $10,113 
Restricted cash for litigation settlement586 586 
Investments510 483 
Accounts receivable2,820 2,646 
Settlement due from customers861 1,706 
Restricted security deposits held for customers1,832 1,696 
Prepaid expenses and other current assets2,367 1,883 
Total current assets15,382 19,113 
Property, equipment and right-of-use assets, net of accumulated depreciation and amortization
of $1,570 and $1,390, respectively
1,860 1,902 
Deferred income taxes471 491 
Goodwill7,569 4,960 
Other intangible assets, net of accumulated amortization of $1,676 and $1,489, respectively
3,561 1,753 
Other assets6,567 5,365 
Total Assets$35,410 $33,584 
Liabilities, Redeemable Non-controlling Interests and Equity
Current liabilities:
Accounts payable$557 $527 
Settlement due to customers496 1,475 
Restricted security deposits held for customers1,832 1,696 
Accrued litigation838 842 
Accrued expenses5,964 5,430 
Current portion of long-term debt650 649 
Other current liabilities1,224 1,228 
Total current liabilities11,561 11,847 
Long-term debt13,211 12,023 
Deferred income taxes374 86 
Other liabilities3,462 3,111 
Total Liabilities28,608 27,067 
Commitments and Contingencies
Redeemable Non-controlling Interests29 29 
Stockholders’ Equity
Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,397 and 1,396 shares issued and 976 and 987 shares outstanding, respectively
  
Class B common stock, $0.0001 par value; authorized 1,200 shares, 8 shares issued and outstanding
  
Additional paid-in-capital5,026 4,982 
Class A treasury stock, at cost, 422 and 409 shares, respectively
(41,282)(36,658)
Retained earnings43,750 38,747 
Accumulated other comprehensive income (loss)(791)(680)
Mastercard Incorporated Stockholders' Equity6,703 6,391 
Non-controlling interests70 97 
Total Equity6,773 6,488 
Total Liabilities, Redeemable Non-controlling Interests and Equity$35,410 $33,584 

The accompanying notes are an integral part of these consolidated financial statements.

8 MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Statement of Changes in Equity (Unaudited)
Three Months Ended September 30, 2021
Stockholders’ Equity
Common StockAdditional
Paid-In
Capital
Class A
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Mastercard Incorporated Stockholders’ EquityNon-
Controlling
Interests
Total Equity
Class AClass B
(in millions)
Balance at June 30, 2021$ $ $5,053 $(39,729)$41,771 $(653)$6,442 $98 $6,540 
Net income
— — — — 2,414 — 2,414 — 2,414 
Activity related to non-controlling interests— — — — — — — (11)(11)
Acquisition of non-controlling interest— — (122)— — — (122)(17)(139)
Redeemable non-controlling interest adjustments— — — — (2)— (2)— (2)
Other comprehensive income (loss)— — — — — (138)(138)— (138)
Dividends
— — — — (433)— (433)— (433)
Purchases of treasury stock
— — — (1,553)— — (1,553)— (1,553)
Share-based payments
— — 95  — — 95 — 95 
Balance at September 30, 2021$ $ $5,026 $(41,282)$43,750 $(791)$6,703 $70 $6,773 
Nine Months Ended September 30, 2021
Stockholders’ Equity
  
Common Stock
Additional
Paid-In
Capital
Class A
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Mastercard Incorporated Stockholders' EquityNon-
Controlling
Interests
Total
Equity
 Class AClass B
 (in millions)
Balance at December 31, 2020$ $ $4,982 $(36,658)$38,747 $(680)$6,391 $97 $6,488 
Net income— — — — 6,308 — 6,308 — 6,308 
Activity related to non-controlling interests— — — — — — — (10)(10)
Acquisition of non-controlling interest— — (122)— — — (122)(17)(139)
Redeemable non-controlling interest adjustments — — — — (4)— (4)— (4)
Other comprehensive income (loss)— — — — — (111)(111)— (111)
Dividends— — — — (1,301)— (1,301)— (1,301)
Purchases of treasury stock— — — (4,628)— — (4,628)— (4,628)
Share-based payments— — 166 4 — — 170 — 170 
Balance at September 30, 2021$ $ $5,026 $(41,282)$43,750 $(791)$6,703 $70 $6,773 

MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q 9


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Statement of Changes in Equity (Unaudited) - (Continued)
Three Months Ended September 30, 2020
Stockholders’ Equity
Common StockAdditional
Paid-In
Capital
Class A
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Mastercard Incorporated Stockholders’ EquityNon-
Controlling
Interests
Total Equity
Class AClass B
(in millions)
Balance at June 30, 2020$ $ $4,832 $(33,604)$36,288 $(1,046)$6,470 $28 $6,498 
Net income— — — — 1,513 — 1,513 — 1,513 
Activity related to non-controlling interests— — — — — — — 32 32 
Redeemable non-controlling interest adjustments— — — — — — — — — 
Other comprehensive income (loss)— — — — — 166 166 — 166 
Dividends— — — — (398)— (398)— (398)
Purchases of treasury stock— — — (2,049)— — (2,049)— (2,049)
Share-based payments— — 94 — — — 94 — 94 
Balance at September 30, 2020$ $ $4,926 $(35,653)$37,403 $(880)$5,796 $60 $5,856 
Nine Months Ended September 30, 2020
Stockholders’ Equity
  
Common Stock
Additional
Paid-In
Capital
Class A
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Mastercard Incorporated Stockholders' EquityNon-
Controlling
Interests
Total
Equity
 Class AClass B
 (in millions)
Balance at December 31, 2019$ $ $4,787 $(32,205)$33,984 $(673)$5,893 $24 $5,917 
Net income— — — — 4,626 — 4,626 — 4,626 
Activity related to non-controlling interests— — — — — — — 36 36 
Redeemable non-controlling interest adjustments— — — — (5)— (5)— (5)
Other comprehensive income (loss)— — — — — (207)(207)— (207)
Dividends— — — — (1,202)— (1,202)— (1,202)
Purchases of treasury stock— — — (3,454)— — (3,454)— (3,454)
Share-based payments— — 139 6 — — 145 — 145 
Balance at September 30, 2020$ $ $4,926 $(35,653)$37,403 $(880)$5,796 $60 $5,856 

The accompanying notes are an integral part of these consolidated financial statements.

10 MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Statement of Cash Flows (Unaudited)
 Nine Months Ended September 30,
 20212020
 (in millions)
Operating Activities
Net income$6,308 $4,626 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of customer and merchant incentives995 749 
Depreciation and amortization537 430 
(Gains) losses on equity investments, net(534)190 
Share-based compensation241 202 
Deferred income taxes(49)7 
Other34 15 
Changes in operating assets and liabilities:
Accounts receivable(234)112 
Settlement due from customers845 1,618 
Prepaid expenses(1,742)(1,291)
Accrued litigation and legal settlements(4)(116)
Restricted security deposits held for customers136 198 
Accounts payable(74)(145)
Settlement due to customers(978)(1,587)
Accrued expenses692 (399)
Net change in other assets and liabilities101 362 
Net cash provided by operating activities6,274 4,971 
Investing Activities
Purchases of investment securities available-for-sale(326)(161)
Purchases of investments held-to-maturity(172)(126)
Proceeds from sales of investment securities available-for-sale202 349 
Proceeds from maturities of investment securities available-for-sale95 127 
Proceeds from maturities of investments held-to-maturity156 84 
Purchases of property and equipment(285)(280)
Capitalized software(301)(277)
Purchases of equity investments(179)(183)
Proceeds from sales of equity investments185  
Acquisition of businesses, net of cash acquired(4,197)(183)
Settlement of interest rate derivative contracts (175)
Other investing activities(12) 
Net cash used in investing activities(4,834)(825)
Financing Activities
Purchases of treasury stock(4,628)(3,443)
Dividends paid(1,307)(1,206)
Proceeds from debt, net1,282 3,959 
Acquisition of redeemable non-controlling interests (49)
Acquisition of non-controlling interest(133) 
Contingent consideration paid(64) 
Tax withholdings related to share-based payments(130)(145)
Cash proceeds from exercise of stock options55 88 
Other financing activities(13)19 
Net cash used in financing activities(4,938)(777)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents(80)66 
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents(3,578)3,435 
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period12,419 8,969 
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period$8,841 $12,404 

The accompanying notes are an integral part of these consolidated financial statements.

MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q 11


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Notes to consolidated financial statements (unaudited)
Note 1. Summary of Significant Accounting Policies
Organization
Mastercard Incorporated and its consolidated subsidiaries, including Mastercard International Incorporated (“Mastercard International” and together with Mastercard Incorporated, “Mastercard” or the “Company”), is a technology company in the global payments industry that connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide, enabling them to use electronic forms of payment instead of cash and checks.
Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of Mastercard and its majority-owned and controlled entities, including any variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Investments in VIEs for which the Company is not considered the primary beneficiary are not consolidated and are accounted for as equity method or measurement alternative method investments and recorded in other assets on the consolidated balance sheet. At September 30, 2021 and December 31, 2020, there were no significant VIEs which required consolidation and the investments were not considered material to the consolidated financial statements. The Company consolidates acquisitions as of the date on which the Company has obtained a controlling financial interest. Intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the 2021 presentation. The Company follows accounting principles generally accepted in the United States of America (“GAAP”).
The balance sheet as of December 31, 2020 was derived from the audited consolidated financial statements as of December 31, 2020. The consolidated financial statements for the three and nine months ended September 30, 2021 and 2020 and as of September 30, 2021 are unaudited, and in the opinion of management, include all normal recurring adjustments that are necessary to present fairly the results for interim periods. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year.
The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (“SEC”) requirements for Quarterly Reports on Form 10-Q. Reference should be made to Mastercard’s Annual Report on Form 10-K for the year ended December 31, 2020 for additional disclosures, including a summary of the Company’s significant accounting policies.
Note 2. Acquisitions
During the nine months ended September 30, 2021, the Company acquired businesses for $4.4 billion in cash consideration. These acquisitions align with the Company’s strategy to grow, diversify and build the Company’s business.
On March 5, 2021, Mastercard acquired a majority of the Corporate Services business of Nets Denmark A/S (“Nets”) for €3.0 billion (approximately $3.6 billion as of the date of acquisition) in cash consideration based on a €2.85 billion enterprise value, adjusted for cash and net working capital at closing. The business acquired is primarily comprised of clearing and instant payment services and e-billing solutions. In relation to this acquisition, the Company’s preliminary estimate of net assets acquired primarily relates to intangible assets, including goodwill of $2.1 billion, of which $0.8 billion is expected to be deductible for local tax purposes. The goodwill arising from this acquisition is primarily attributable to the synergies expected to arise through geographic, product and customer expansion, the underlying technology and workforce acquired.
On June 9, 2021, Mastercard acquired a 100% equity interest in Ekata, Inc. (“Ekata”) for cash consideration of $861 million, based on an $850 million enterprise value, adjusted for cash and net working capital at closing. The acquisition of Ekata is expected to broaden the Company’s digital identity verification capabilities. The residual value allocated to goodwill is primarily attributable to the synergies expected to arise after the acquisition date and none of the goodwill is expected to be deductible for local tax purposes.
Refer to Note 1 (Summary of Significant Accounting Policies) to the consolidated financial statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 for the valuation techniques Mastercard utilizes to fair value the respective components of business combinations.

12 MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company is in the process of evaluating additional information necessary to finalize the valuation of the acquired assets and liabilities assumed as of the acquisition dates for the Nets and Ekata acquisitions. Therefore, the preliminary fair values set forth below use information available as of September 30, 2021 and are subject to adjustment as additional information is evaluated and the valuations are completed. The initial purchase price allocation, as of the acquisition dates, is noted below:
(in millions)
Assets:
Cash and cash equivalents$228 
Other current assets33 
Other intangible assets1,917 
Goodwill2,695 
Other assets15 
Total assets4,888 
Liabilities:
Other current liabilities91 
Deferred income taxes 359 
Other liabilities11 
Total liabilities461 
Net assets acquired$4,427 
The following table summarizes the identified intangible assets acquired during the nine months ended September 30, 2021:
Acquisition Date Fair ValueWeighted-Average Useful Life
(in millions)(in years)
Developed technologies$366 12.3
Customer relationships1,530 19.0
Other21 8.0
Other intangible assets$1,917 17.6
Proforma information related to these acquisitions was not included because the impact on the Company’s consolidated results of operations was not considered to be material.
In 2020, the Company acquired several businesses in separate transactions for total consideration of $1.1 billion. As of September 30, 2021, the Company had finalized the purchase accounting for $185 million of the businesses acquired and is evaluating and finalizing the purchase accounting for the remainder of businesses acquired during 2020. For the preliminary estimated and final fair values of the purchase price allocations, as of the acquisition dates, refer to Note 2 (Acquisitions) to the consolidated financial statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
Pending Acquisitions
As of September 30, 2021, Mastercard has entered into definitive agreements to acquire certain businesses in separate transactions for total consideration of approximately $266 million. These acquisitions have closed or are expected to close in the fourth quarter of 2021 and are expected to further compliment the Company’s strategic goals.

MASTERCARD SEPTEMBER 30, 2021 FORM 10-Q 13


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 3. Revenue
The Company’s disaggregated net revenue by source and geographic region were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(in millions)
Revenue by source:
Domestic assessments$2,139 $1,750 $5,993 $4,907 
Cross-border volume fees1,276 791 3,284 2,645 
Transaction processing2,849 2,251 7,812 6,352 
Other revenues1,562 1,143 4,384 3,286 
Gross revenue7,826 5,935 21,473 17,190 
Rebates and incentives (contra-revenue)(2,841)(2,098)(7,805)(6,009)
Net revenue$4,985 $3,837 $13,668 $11,181 
Net revenue by geographic region:
North American Markets$1,707 $1,381 $4,803 $3,958 
International Markets3,218 2,419 8,715 7,094 
Other 1
60 37 150