000114139112/312024Q1FALSEhttp://fasb.org/us-gaap/2023#GeneralAndAdministrativeExpensehttp://fasb.org/us-gaap/2023#GeneralAndAdministrativeExpense33415,7243938,67627527,08420142,24830920,7643,19900011413912024-01-012024-03-310001141391us-gaap:CommonClassAMember2024-01-012024-03-310001141391ma:TwoPointOnePercentNotesDue2027Member2024-01-012024-03-310001141391ma:A1NotesDue2029Member2024-01-012024-03-310001141391ma:TwoPointFivePercentNotesDue2030Member2024-01-012024-03-310001141391us-gaap:CommonClassAMember2024-04-26xbrli:shares0001141391us-gaap:CommonClassBMember2024-04-26iso4217:USD00011413912023-01-012023-03-31iso4217:USDxbrli:shares00011413912024-03-3100011413912023-12-310001141391us-gaap:CommonClassAMember2023-12-310001141391us-gaap:CommonClassAMember2024-03-310001141391us-gaap:CommonClassBMember2024-03-310001141391us-gaap:CommonClassBMember2023-12-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-12-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-12-310001141391us-gaap:AdditionalPaidInCapitalMember2023-12-310001141391us-gaap:TreasuryStockCommonMember2023-12-310001141391us-gaap:RetainedEarningsMember2023-12-310001141391us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001141391us-gaap:ParentMember2023-12-310001141391us-gaap:NoncontrollingInterestMember2023-12-310001141391us-gaap:RetainedEarningsMember2024-01-012024-03-310001141391us-gaap:ParentMember2024-01-012024-03-310001141391us-gaap:NoncontrollingInterestMember2024-01-012024-03-310001141391us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001141391us-gaap:TreasuryStockCommonMember2024-01-012024-03-310001141391us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-03-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-03-310001141391us-gaap:AdditionalPaidInCapitalMember2024-03-310001141391us-gaap:TreasuryStockCommonMember2024-03-310001141391us-gaap:RetainedEarningsMember2024-03-310001141391us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001141391us-gaap:ParentMember2024-03-310001141391us-gaap:NoncontrollingInterestMember2024-03-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassAMember2022-12-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-12-310001141391us-gaap:AdditionalPaidInCapitalMember2022-12-310001141391us-gaap:TreasuryStockCommonMember2022-12-310001141391us-gaap:RetainedEarningsMember2022-12-310001141391us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001141391us-gaap:ParentMember2022-12-310001141391us-gaap:NoncontrollingInterestMember2022-12-3100011413912022-12-310001141391us-gaap:RetainedEarningsMember2023-01-012023-03-310001141391us-gaap:ParentMember2023-01-012023-03-310001141391us-gaap:NoncontrollingInterestMember2023-01-012023-03-310001141391us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001141391us-gaap:TreasuryStockCommonMember2023-01-012023-03-310001141391us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-03-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-03-310001141391us-gaap:AdditionalPaidInCapitalMember2023-03-310001141391us-gaap:TreasuryStockCommonMember2023-03-310001141391us-gaap:RetainedEarningsMember2023-03-310001141391us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001141391us-gaap:ParentMember2023-03-310001141391us-gaap:NoncontrollingInterestMember2023-03-3100011413912023-03-310001141391ma:PaymentNetworkMember2024-01-012024-03-310001141391ma:PaymentNetworkMember2023-01-012023-03-310001141391ma:ValueAddedServicesAndSolutionsMember2024-01-012024-03-310001141391ma:ValueAddedServicesAndSolutionsMember2023-01-012023-03-310001141391srt:NorthAmericaMember2024-01-012024-03-310001141391srt:NorthAmericaMember2023-01-012023-03-310001141391ma:InternationalMarketsMember2024-01-012024-03-310001141391ma:InternationalMarketsMember2023-01-012023-03-310001141391us-gaap:AccountsReceivableMember2024-03-310001141391us-gaap:AccountsReceivableMember2023-12-310001141391us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2024-03-310001141391us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2023-12-310001141391us-gaap:OtherAssetsMember2024-03-310001141391us-gaap:OtherAssetsMember2023-12-310001141391us-gaap:OtherCurrentLiabilitiesMember2024-03-310001141391us-gaap:OtherCurrentLiabilitiesMember2023-12-310001141391us-gaap:OtherLiabilitiesMember2024-03-310001141391us-gaap:OtherLiabilitiesMember2023-12-310001141391ma:RestrictedCashSecurityDepositsMember2024-03-310001141391ma:RestrictedCashSecurityDepositsMember2023-12-310001141391ma:RestrictedCashPrepaidExpensesAndOtherCurrentAssetsMember2024-03-310001141391ma:RestrictedCashPrepaidExpensesAndOtherCurrentAssetsMember2023-12-310001141391ma:GovernmentsecuritiesMember2024-03-310001141391ma:GovernmentsecuritiesMember2023-12-310001141391us-gaap:FixedIncomeSecuritiesMember2024-03-310001141391us-gaap:FixedIncomeSecuritiesMember2023-12-310001141391ma:GovernmentsecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-03-310001141391ma:GovernmentsecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-03-310001141391ma:GovernmentsecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001141391ma:GovernmentsecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001141391ma:GovernmentsecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001141391ma:GovernmentsecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001141391us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-03-310001141391us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-03-310001141391us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001141391us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001141391us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001141391us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001141391us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Member2024-03-310001141391us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2024-03-310001141391us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2024-03-310001141391us-gaap:ForeignExchangeContractMember2024-03-310001141391us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Member2023-12-310001141391us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2023-12-310001141391us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2023-12-310001141391us-gaap:ForeignExchangeContractMember2023-12-310001141391us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-03-310001141391us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-03-310001141391us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001141391us-gaap:EquitySecuritiesMember2024-03-310001141391us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001141391us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001141391us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001141391us-gaap:EquitySecuritiesMember2023-12-310001141391us-gaap:FairValueInputsLevel1Member2024-03-310001141391us-gaap:FairValueInputsLevel2Member2024-03-310001141391us-gaap:FairValueInputsLevel3Member2024-03-310001141391us-gaap:FairValueInputsLevel1Member2023-12-310001141391us-gaap:FairValueInputsLevel2Member2023-12-310001141391us-gaap:FairValueInputsLevel3Member2023-12-310001141391us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel1Member2024-03-310001141391us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel2Member2024-03-310001141391us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel3Member2024-03-310001141391us-gaap:InterestRateContractMember2024-03-310001141391us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel1Member2023-12-310001141391us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel2Member2023-12-310001141391us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel3Member2023-12-310001141391us-gaap:InterestRateContractMember2023-12-310001141391us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001141391us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001141391us-gaap:CommonStockMember2024-01-012024-03-310001141391us-gaap:CommonStockMember2023-01-012023-03-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-01-012024-03-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-01-012024-03-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-01-012023-03-310001141391us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-01-012023-03-310001141391ma:November2021ShareRepurchasePlanMember2023-12-310001141391ma:December2020ShareRepurchasePlanMember2022-12-310001141391us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001141391us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001141391us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001141391ma:AccumulatedTranslationAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001141391ma:AccumulatedTranslationAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001141391ma:AccumulatedTranslationAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2023-12-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2024-01-012024-03-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2024-03-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateContractMember2023-12-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateContractMember2024-01-012024-03-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateContractMember2024-03-310001141391us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001141391us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001141391us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001141391us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001141391us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001141391us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001141391us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001141391us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001141391us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001141391us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001141391us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001141391us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001141391ma:AccumulatedTranslationAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001141391ma:AccumulatedTranslationAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001141391ma:AccumulatedTranslationAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2022-12-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2023-01-012023-03-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2023-03-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateContractMember2022-12-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateContractMember2023-01-012023-03-310001141391us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateContractMember2023-03-310001141391us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001141391us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001141391us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001141391us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001141391us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001141391us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001141391us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001141391us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001141391us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001141391us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001141391us-gaap:PerformanceSharesMember2024-01-012024-03-310001141391us-gaap:EmployeeStockOptionMember2024-01-012024-03-31xbrli:pure0001141391ma:RestrictedStockUnitsRSUsGrantedOnOrAfterMarch12020Member2024-01-012024-03-310001141391ma:EventInvolvingVisaPartiesMemberBanksAndMastercardMember2011-01-012011-12-310001141391ma:EventInvolvingMemberBanksAndMastercardMember2011-01-012011-12-310001141391srt:MaximumMemberma:U.S.MerchantLitigationClassLitigationMember2018-12-310001141391srt:MinimumMemberma:U.S.MerchantLitigationOptOutMemberus-gaap:SettledLitigationMember2019-01-012024-03-31ma:merchant0001141391srt:MinimumMemberma:U.S.MerchantLitigationClassLitigationMember2024-03-310001141391ma:USMerchantLawsuitSettlementMember2024-03-310001141391ma:USMerchantLawsuitSettlementMember2023-12-310001141391ma:U.K.MerchantLawsuitSettlementMemberus-gaap:PendingLitigationMember2024-03-31iso4217:GBP0001141391ma:A2022MastercardAndVisaProposedCollectiveActionComplaintInTheUKMember2024-01-012024-03-310001141391ma:ProposedU.K.InterchangeCollectiveActionMember2024-01-012024-03-310001141391ma:PortugalProposedInterchangeCollectiveActionMember2024-01-012024-03-31iso4217:EUR0001141391ma:ATMOperatorsComplaintMember2011-10-012011-10-31ma:plaintiff0001141391ma:ATMOperatorsComplaintMember2019-12-310001141391ma:ATMOperatorsComplaintMember2024-03-310001141391ma:ATMOperatorsComplaintMember2024-03-012024-03-310001141391ma:USLiabilityShiftLitigationMember2024-01-012024-03-31ma:defendantma:fax0001141391us-gaap:GuaranteeObligationsMember2024-03-310001141391us-gaap:GuaranteeObligationsMember2023-12-310001141391us-gaap:SeniorNotesMemberma:March2050NotesMember2021-12-310001141391us-gaap:NetInvestmentHedgingMember2023-12-310001141391us-gaap:NetInvestmentHedgingMember2024-03-310001141391ma:EuroDenominatedDebtMember2024-01-012024-03-310001141391ma:EuroDenominatedDebtMember2023-01-012023-03-310001141391ma:EuroDenominatedDebtMemberus-gaap:NetInvestmentHedgingMember2024-03-310001141391ma:EuroDenominatedDebtMemberus-gaap:NetInvestmentHedgingMember2023-12-310001141391us-gaap:DesignatedAsHedgingInstrumentMemberma:PrepaidExpensesOtherCurrentAssetsAndOtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2024-03-310001141391us-gaap:DesignatedAsHedgingInstrumentMemberma:PrepaidExpensesOtherCurrentAssetsAndOtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2023-12-310001141391us-gaap:DesignatedAsHedgingInstrumentMemberma:OtherCurrentLiabilitiesAndOtherLiabilitiesMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2024-03-310001141391us-gaap:DesignatedAsHedgingInstrumentMemberma:OtherCurrentLiabilitiesAndOtherLiabilitiesMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2023-12-310001141391ma:PrepaidExpensesOtherCurrentAssetsAndOtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2024-03-310001141391ma:PrepaidExpensesOtherCurrentAssetsAndOtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2023-12-310001141391us-gaap:ForeignExchangeContractMember2024-01-012024-03-310001141391us-gaap:ForeignExchangeContractMember2023-01-012023-03-310001141391us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2024-01-012024-03-310001141391us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2023-01-012023-03-310001141391us-gaap:InterestRateContractMember2024-01-012024-03-310001141391us-gaap:InterestRateContractMember2023-01-012023-03-310001141391us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2024-01-012024-03-310001141391us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2023-01-012023-03-310001141391us-gaap:InterestRateRiskMemberus-gaap:CashFlowHedgingMember2024-01-012024-03-310001141391ma:TimMurphyMember2024-01-012024-03-310001141391ma:LingHaiMember2024-01-012024-03-310001141391ma:CraigVosburgMember2024-01-012024-03-310001141391ma:AjayBhallaMember2024-01-012024-03-310001141391ma:RajSeshadriMember2024-01-012024-03-310001141391ma:TimMurphyMemberma:ClassACommonStockMember2024-03-310001141391ma:LingHaiMemberma:ClassACommonStockUnderlyingEmployeeStockOptionsMember2024-03-310001141391ma:CraigVosburgMemberma:ClassACommonStockUnderlyingEmployeeStockOptionsMember2024-03-310001141391ma:AjayBhallaMemberma:ClassACommonStockUnderlyingEmployeeStockOptionsMember2024-03-310001141391ma:RajSeshadriMemberma:ClassACommonStockUnderlyingEmployeeStockOptionsMember2024-03-310001141391ma:RajSeshadriMemberma:ClassACommonStockMember2024-03-31


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 March 31, 2024
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
mc_logononamea02.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
2.1% Notes due 2027
MA27
New York Stock Exchange
1.0% Notes due 2029
MA29A
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 filerAccelerated filer
Non-accelerated filerSmaller 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)
YesNo
As of April 26, 2024, there were 922,470,031 shares outstanding of the registrant’s Class A common stock, par value $0.0001 per share; and 7,145,369 shares outstanding of the registrant’s Class B common stock, par value $0.0001 per share.



mcsymbola02.jpg
MASTERCARD INCORPORATED FORM 10-Q
TABLE OF CONTENTS
PART I
PART II
Unregistered sales of equity securities, use of proceeds and issuer purchases of equity securities
-

2 MASTERCARD MARCH 31, 2024 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 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, AI, information 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 stakeholder reaction
the inability to attract 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 as well as other contractual obligations and discretionary actions we may take
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, 2023. 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 MARCH 31, 2024 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 Months Ended March 31, 2024 and 2023
Consolidated Statement of Comprehensive Income — Three Months Ended March 31, 2024 and 2023
Consolidated Statement of Changes in Equity Three Months Ended March 31, 2024 and 2023
Consolidated Statement of Cash Flows — Three Months Ended March 31, 2024 and 2023

MASTERCARD MARCH 31, 2024 FORM 10-Q 5


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Statement of Operations (Unaudited)
 Three Months Ended March 31,
 20242023
 (in millions, except per share data)
Net Revenue$6,348 $5,748 
Operating Expenses:
General and administrative2,286 2,043 
Advertising and marketing116 167 
Depreciation and amortization216 191 
Provision for litigation126 211 
Total operating expenses2,744 2,612 
Operating income3,604 3,136 
Other Income (Expense):
Investment income95 55 
Gains (losses) on equity investments, net6 (212)
Interest expense(150)(132)
Other income (expense), net3 6 
Total other income (expense)(46)(283)
Income before income taxes3,558 2,853 
Income tax expense547 492 
Net Income$3,011 $2,361 
Basic Earnings per Share$3.23 $2.48 
Basic weighted-average shares outstanding933 953 
Diluted Earnings per Share$3.22 $2.47 
Diluted weighted-average shares outstanding935 956 

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

6 MASTERCARD MARCH 31, 2024 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Statement of Comprehensive Income (Unaudited)
 Three Months Ended March 31,
 20242023
 (in millions)
Net Income$3,011 $2,361 
Other comprehensive income (loss):
Foreign currency translation adjustments(168)94 
Income tax effect9 (14)
Foreign currency translation adjustments, net of income tax effect(159)80 
Translation adjustments on net investment hedges47 (74)
Income tax effect(11)17 
Translation adjustments on net investment hedges, net of income tax effect36 (57)
Cash flow hedges22 (10)
Income tax effect(5) 
Reclassification adjustments for cash flow hedges5 8 
Income tax effect(2)1 
Cash flow hedges, net of income tax effect20 (1)
Investment securities available-for-sale
 2 
Income tax effect  
Investment securities available-for-sale, net of income tax effect 2 
Other comprehensive income (loss), net of income tax effect(103)24 
Comprehensive Income$2,908 $2,385 

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


MASTERCARD MARCH 31, 2024 FORM 10-Q 7


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Balance Sheet (Unaudited)
March 31, 2024December 31, 2023
 (in millions, except per share data)
Assets
Current assets:
Cash and cash equivalents$7,293 $8,588 
Restricted security deposits held for customers1,861 1,845 
Investments364 592 
Accounts receivable4,231 4,060 
Settlement assets1,647 1,233 
Prepaid expenses and other current assets3,028 2,643 
Total current assets18,424 18,961 
Property, equipment and right-of-use assets, net of accumulated depreciation and amortization of $2,304 and $2,237, respectively
2,077 2,061 
Deferred income taxes1,329 1,355 
Goodwill7,545 7,660 
Other intangible assets, net of accumulated amortization of $2,284 and $2,209, respectively
4,123 4,086 
Other assets9,104 8,325 
Total Assets$42,602 $42,448 
Liabilities, Redeemable Non-controlling Interests and Equity
Current liabilities:
Accounts payable$790 $834 
Settlement obligations1,824 1,399 
Restricted security deposits held for customers1,861 1,845 
Accrued litigation595 723 
Accrued expenses8,062 8,517 
Short-term debt2,086 1,337 
Other current liabilities1,687 1,609 
Total current liabilities16,905 16,264 
Long-term debt13,543 14,344 
Deferred income taxes345 369 
Other liabilities4,501 4,474 
Total Liabilities35,294 35,451 
Commitments and Contingencies
Redeemable Non-controlling Interests22 22 
Stockholders’ Equity
Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,403 and 1,402 shares issued and 924 and 927 shares outstanding, respectively
  
Class B common stock, $0.0001 par value; authorized 1,200 shares, 7 shares issued and outstanding
  
Additional paid-in-capital5,920 5,893 
Class A treasury stock, at cost, 479 and 475 shares, respectively
(62,434)(60,429)
Retained earnings64,959 62,564 
Accumulated other comprehensive income (loss)(1,202)(1,099)
Mastercard Incorporated Stockholders' Equity7,243 6,929 
Non-controlling interests43 46 
Total Equity7,286 6,975 
Total Liabilities, Redeemable Non-controlling Interests and Equity$42,602 $42,448 

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

8 MASTERCARD MARCH 31, 2024 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Statement of Changes in Equity (Unaudited)
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)
Three Months Ended
March 31, 2024
Balance at beginning of period
$ $ $5,893 $(60,429)$62,564 $(1,099)$6,929 $46 $6,975 
Net income— — — — 3,011 — 3,011 — 3,011 
Activity related to non-controlling interests— — — — — — — (3)(3)
Redeemable non-controlling interest adjustments— — — — (1)— (1)— (1)
Other comprehensive income (loss)— — — — — (103)(103)— (103)
Dividends— — — — (615)— (615)— (615)
Purchases of treasury stock— — — (2,013)— — (2,013)— (2,013)
Share-based payments— — 27 8 — — 35 — 35 
Balance at end of period
$ $ $5,920 $(62,434)$64,959 $(1,202)$7,243 $43 $7,286 
Three Months Ended
March 31, 2023
Balance at beginning of period
$ $ $5,298 $(51,354)$53,607 $(1,253)$6,298 $58 $6,356 
Net income— — — — 2,361 — 2,361 — 2,361 
Activity related to non-controlling interests— — — — — — — (2)(2)
Redeemable non-controlling interest adjustments — — — — (3)— (3)— (3)
Other comprehensive income (loss)— — — — — 24 24 — 24 
Dividends— — — — (541)— (541)— (541)
Purchases of treasury stock— — (2,894)— — (2,894)— (2,894)
Share-based payments— — 78 7 — — 85 — 85 
Balance at end of period
$ $ $5,376 $(54,241)$55,424 $(1,229)$5,330 $56 $5,386 


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

MASTERCARD MARCH 31, 2024 FORM 10-Q 9


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Statement of Cash Flows (Unaudited)
 Three Months Ended March 31,
 20242023
 (in millions)
Operating Activities
Net income$3,011 $2,361 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of customer incentives411 378 
Depreciation and amortization216 191 
(Gains) losses on equity investments, net(6)212 
Share-based compensation108 108 
Deferred income taxes3 (129)
Other32 2 
Changes in operating assets and liabilities:
Accounts receivable(219)(38)
Settlement assets(417)35 
Prepaid expenses(1,490)(761)
Accrued litigation and legal settlements(127)9 
Restricted security deposits held for customers16 40 
Accounts payable(21)(184)
Settlement obligations430 (241)
Accrued expenses(446)(506)
Net change in other assets and liabilities171 442 
Net cash provided by operating activities1,672 1,919 
Investing Activities
Purchases of investment securities available-for-sale(95)(50)
Purchases of investments held-to-maturity(66)(26)
Proceeds from sales of investment securities available-for-sale22 4 
Proceeds from maturities of investment securities available-for-sale67 51 
Proceeds from maturities of investments held-to-maturity284 24 
Purchases of property and equipment(157)(110)
Capitalized software(221)(242)
Purchases of equity investments(8)(22)
Proceeds from sales of equity investments 44 
Other investing activities (70)
Net cash used in investing activities(174)(397)
Financing Activities
Purchases of treasury stock(1,992)(2,878)
Dividends paid(616)(545)
Proceeds from debt, net 1,489 
Tax withholdings related to share-based payments(170)(76)
Cash proceeds from exercise of stock options97 53 
Other financing activities 2 
Net cash used in financing activities(2,681)(1,955)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents(95)37 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents(1,278)(396)
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period10,465 9,196 
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period$9,187 $8,800 

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

10 MASTERCARD MARCH 31, 2024 FORM 10-Q


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. Mastercard connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide by enabling electronic payments and making those payment transactions safe, simple, smart and accessible.
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 marketable, equity method or measurement alternative method investments and recorded in other assets on the consolidated balance sheet. At March 31, 2024 and December 31, 2023, 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 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 2024 presentation. The reclassification had no impact on previously reported total net revenue, operating income or net income. The Company follows accounting principles generally accepted in the United States of America (“GAAP”).
The balance sheet as of December 31, 2023 was derived from the audited consolidated financial statements as of December 31, 2023. The consolidated financial statements for the three months ended March 31, 2024 and 2023 and as of March 31, 2024 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 months ended March 31, 2024 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, 2023 for additional disclosures, including a summary of the Company’s significant accounting policies.
Note 2. Revenue
The Company’s disaggregated net revenue by category and geographic region were as follows:
Three Months Ended March 31,
20242023
(in millions)
Net revenue by category:
Payment network$3,920 $3,650 
Value-added services and solutions2,428 2,098 
Net revenue$6,348 $5,748 
Net revenue by geographic region:
Americas 1
$2,773 $2,537 
Asia Pacific, Europe, Middle East and Africa
3,575 3,211 
Net revenue$6,348 $5,748 
1Americas includes the United States, Canada and Latin America. Prior period amounts have been reclassified to conform to the new presentation.

MASTERCARD MARCH 31, 2024 FORM 10-Q 11


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company’s customers are generally billed weekly, with certain billings occurring on a monthly and quarterly basis. The frequency of billing is dependent upon the nature of the performance obligation and the underlying contractual terms. The Company does not typically offer extended payment terms to customers. The following table sets forth the location of the amounts recognized on the consolidated balance sheet from contracts with customers:
March 31,
2024
December 31,
2023
(in millions)
Receivables from contracts with customers
Accounts receivable
$3,989 $3,851 
Contract assets
Prepaid expenses and other current assets157 133 
Other assets409 387 
Deferred revenue 1
Other current liabilities632 459 
Other liabilities346 318 
1    Revenue recognized from performance obligations satisfied during the three months ended March 31, 2024 was $510 million.
Note 3. Earnings Per Share
The components of basic and diluted earnings per share (“EPS”) for common shares were as follows:
Three Months Ended March 31,
20242023
(in millions, except per share data)
Numerator
Net income$3,011 $2,361 
Denominator
Basic weighted-average shares outstanding933 953 
Dilutive stock options and stock units2 3 
Diluted weighted-average shares outstanding 1
935 956 
Earnings per Share
Basic$3.23 $2.48 
Diluted$3.22 $2.47 
Note: Table may not sum due to rounding.
1    For the periods presented, the calculation of diluted EPS excluded a minimal amount of anti-dilutive share-based payment awards.
Note 4. Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
The following table provides the components of cash, cash equivalents, restricted cash and restricted cash equivalents reported on the consolidated balance sheet that total to the amounts shown on the consolidated statement of cash flows.
March 31,
2024
December 31,
2023
(in millions)
Cash and cash equivalents$7,293 $8,588 
Restricted cash and restricted cash equivalents
Restricted security deposits held for customers1,861 1,845 
Prepaid expenses and other current assets33 32 
Cash, cash equivalents, restricted cash and restricted cash equivalents$9,187 $10,465 

12 MASTERCARD MARCH 31, 2024 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 5. Investments
The Company’s investments on the consolidated balance sheet include both available-for-sale and held-to-maturity debt securities (see Investments section below). The Company’s strategic investments in equity securities of publicly traded and privately held companies are classified within other assets on the consolidated balance sheet (see Equity Investments section below).
Investments
Investments on the consolidated balance sheet consisted of the following:
March 31,
2024
December 31,
2023
(in millions)
Available-for-sale securities
$283 $286 
Held-to-maturity securities 1
81 306 
Total investments $364 $592 
1Held-to-maturity securities represent investments in time deposits that mature within one year. The cost of these securities approximates fair value.
Investment income on the consolidated statement of operations primarily consists of interest income generated from cash, cash equivalents, held-to maturity and available-for-sale investment securities, as well as realized gains and losses on the Company’s investment securities. The realized gains and losses from the sales of available-for-sale securities for the three months ended March 31, 2024 and 2023 were not material.
Available-for-Sale Securities
The major classes of the Company’s available-for-sale investment securities and their respective amortized cost basis and fair values were as follows:
 March 31, 2024December 31, 2023
 Amortized
Cost
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Fair
Value
Amortized
Cost
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Fair
Value
(in millions)
Government and agency securities$89 $ $ $89 $86 $ $ $86 
Corporate securities194 1 (1)194 200 1 (1)200 
Total$283 $1 $(1)$283 $286 $1 $(1)$286 
The Company’s government and agency securities include U.S. government bonds, U.S. government sponsored agency bonds and foreign government bonds which are denominated in the national currency of the issuing country. Corporate securities held at March 31, 2024 and December 31, 2023, primarily carried a credit rating of A- or better. Corporate securities are comprised of commercial paper and corporate bonds. The gross unrealized gains and losses on the available-for-sale securities are primarily driven by changes in interest rates. For the available-for-sale securities in gross unrealized loss positions, the Company (1) does not intend to sell the securities, (2) more likely than not, will not be required to sell the securities before recovery of the unrealized losses, and (3) expects that the contractual principal and interest will be received. Unrealized gains and losses are recorded as a separate component of other comprehensive income (loss) on the consolidated statement of comprehensive income.
The maturity distribution based on the contractual terms of the Company’s available-for-sale investment securities at March 31, 2024 was as follows:
 
 Amortized CostFair Value
 (in millions)
Due within 1 year$151 $151 
Due after 1 year through 5 years132 132 
Total$283 $283 

MASTERCARD MARCH 31, 2024 FORM 10-Q 13


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Equity Investments
Included in other assets on the consolidated balance sheet are equity investments with readily determinable fair values (“Marketable securities”) and equity investments without readily determinable fair values (“Nonmarketable securities”). Marketable securities are equity interests in publicly traded companies and are measured using unadjusted quoted prices in their respective active markets. Nonmarketable securities that do not qualify for equity method accounting are measured at cost, less any impairment and adjusted for changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer (“Measurement alternative”).
The following table is a summary of the activity related to the Company’s equity investments:
 Balance at December 31, 2023PurchasesSales
Changes in Fair Value 1
Other 2
Balance at March 31, 2024
(in millions)
Marketable securities $506 $ $ $7 $(1)$512 
Nonmarketable securities1,223 8  (1)(5)1,225 
Total equity investments $1,729 $8 $ $6 $(6)$1,737 
1Recorded in gains (losses) on equity investments, net on the consolidated statement of operations.
2Includes translational impact of currency.
The following table sets forth the components of the Company’s Nonmarketable securities:
March 31,
2024
December 31,
2023
(in millions)
Measurement alternative
$1,013 $1,008 
Equity method
212 215 
Total Nonmarketable securities$1,225 $1,223 
The following table summarizes the total carrying value of the Company’s Measurement alternative investments, including cumulative unrealized gains and losses through March 31, 2024:
(in millions)
Initial cost basis
$558 
Cumulative adjustments 1:
Upward adjustments636 
Downward adjustments (including impairment)(181)
Carrying amount, end of period$1,013 
1 Includes immaterial translational impact of currency.
The following table summarizes the unrealized gains and losses included in the carrying value of the Company’s Measurement alternative investments and Marketable securities:
Three Months Ended March 31,
20242023
(in millions)
Measurement alternative investments:
Upward adjustments$7 $ 
Downward adjustments (including impairment)(3)(133)
Marketable securities:
Unrealized gains (losses), net7 (66)

14 MASTERCARD MARCH 31, 2024 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 6. Fair Value Measurements
The Company’s financial instruments are carried at fair value, cost or amortized cost on the consolidated balance sheet. The Company classifies its fair value measurements of financial instruments into a three-level hierarchy (the “Valuation Hierarchy”).
Financial Instruments - Carried at Fair Value
Financial instruments carried at fair value are categorized for fair value measurement purposes as recurring or non-recurring in nature.
Recurring Measurements
The distribution of the Company’s financial instruments measured at fair value on a recurring basis within the Valuation Hierarchy were as follows:
 March 31, 2024December 31, 2023
 Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
TotalQuoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
(in millions)
Assets
Investment securities available-for-sale 1:
Government and agency securities$37 $52 $ $89 $33 $53 $ $86 
Corporate securities 194  194  200  200 
Derivative instruments 2:
Foreign exchange contracts 54  54  36  36 
Marketable securities 3:
Equity securities512   512 506   506 
Deferred compensation plan 4:
Deferred compensation assets101   101 93   93 
Liabilities
Derivative instruments 2:
Foreign exchange contracts$ $31 $ $31 $ $104 $ $104 
Interest rate contracts  88  88  79  79 
Deferred compensation plan 5:
Deferred compensation liabilities100   100 91   91 
1The Company’s U.S. government securities are classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices for identical assets in active markets. The fair value of the Company’s available-for-sale non-U.S. government and agency securities and corporate securities are based on observable inputs such as quoted prices, benchmark yields and issuer spreads for similar assets in active markets and are therefore included in Level 2 of the Valuation Hierarchy.
2The Company’s foreign exchange and interest rate derivative asset and liability contracts measured at fair value are based on observable inputs such as broker quotes for similar derivative instruments. See Note 15 (Derivative and Hedging Instruments) for further details.
3The Company’s Marketable securities are publicly held and fair values are based on unadjusted quoted prices in their respective active markets.
4The Company has a nonqualified deferred compensation plan where assets are invested primarily in mutual funds held in a rabbi trust, which is restricted for payments to participants of the plan. The Company has elected to use the fair value option for these mutual funds, which are measured using quoted prices of identical instruments in active markets and are included in prepaid expenses and other current assets on the consolidated balance sheet.
5The deferred compensation liabilities are measured at fair value based on the quoted prices of identical instruments to the investment vehicles selected by the participants. These are included in other liabilities on the consolidated balance sheet.

MASTERCARD MARCH 31, 2024 FORM 10-Q 15


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Nonrecurring Measurements
Nonmarketable Securities
The Company’s Nonmarketable securities are recorded at fair value on a nonrecurring basis in periods after initial recognition under the equity method or measurement alternative method. Nonmarketable securities are classified within Level 3 of the Valuation Hierarchy due to the absence of quoted market prices, the inherent lack of liquidity and unobservable inputs used to measure fair value that require management’s judgment. The Company uses discounted cash flows and market assumptions to estimate the fair value of its Nonmarketable securities when certain events or circumstances indicate that impairment may exist. See Note 5 (Investments) for further details.
Financial Instruments - Not Carried at Fair Value
Debt
Debt instruments are carried on the consolidated balance sheet at amortized cost. The Company estimates the fair value of its debt based on either market quotes or observable market data. Debt is classified as Level 2 of the Valuation Hierarchy as it is generally not traded in active markets. At March 31, 2024, the carrying value and fair value of debt was $15.6 billion and $14.4 billion, respectively. At December 31, 2023, the carrying value and fair value of debt was $15.7 billion and $14.7 billion, respectively. See Note 15 (Debt) to the consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2023 for further details.
Other Financial Instruments
Certain other financial instruments are carried on the consolidated balance sheet at cost or amortized cost basis, which approximates fair value due to their short-term, highly liquid nature. These instruments include cash and cash equivalents, time deposits, accounts receivable, settlement assets, restricted cash and restricted cash equivalents, accounts payable, settlement obligations and other accrued liabilities.
Note 7. Prepaid Expenses and Other Assets
Prepaid expenses and other current assets consisted of the following:
March 31,
2024
December 31,
2023
(in millions)
Customer incentives
$1,629 $1,570 
Other1,399 1,073 
Total prepaid expenses and other current assets$3,028 $2,643 
Other assets consisted of the following:
March 31,
2024
December 31,
2023
(in millions)
Customer incentives
$5,894 $5,170 
Equity investments1,737 1,729 
Income taxes receivable843 783 
Other630 643 
Total other assets$9,104 $8,325 
Customer incentives represent payments made to customers under business agreements. Payments made directly related to entering into such an agreement are generally capitalized and amortized over the life of the agreement.

16 MASTERCARD MARCH 31, 2024 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 8. Accrued Expenses and Accrued Litigation
Accrued expenses consisted of the following:
March 31,
2024
December 31,
2023
 (in millions)
Customer incentives
$6,210 $6,219 
Personnel costs631 1,258 
Income and other taxes642 486 
Other579 554 
Total accrued expenses$8,062 $8,517 
Customer incentives represent amounts to be paid to customers under business agreements. As of March 31, 2024 and December 31, 2023, long-term customer incentives included in other liabilities were $2,765 million and $2,777 million, respectively.
As of March 31, 2024 and December 31, 2023, the Company’s provision for litigation was $595 million and $723 million, respectively. These amounts are separately reported as accrued litigation on the consolidated balance sheet. See Note 13 (Legal and Regulatory Proceedings) for additional information regarding the Company’s accrued litigation.
Note 9. Stockholders' Equity
Dividends
The Company declared quarterly cash dividends on its Class A and Class B common stock as summarized below: 
Three Months Ended March 31,
20242023
(in millions, except per share data)
Dividends declared per share $0.66 $0.57 
Total dividends declared$615 $541 
Common Stock Activity
The following table presents the changes in the Company’s outstanding Class A and Class B common stock:
Three Months Ended March 31,
20242023
 Outstanding SharesOutstanding Shares
 Class AClass BClass AClass B
(in millions)
Balance at beginning of period927.3 7.2 948.4 7.6 
Purchases of treasury stock(4.4) (8.0) 
Share-based payments1.2  0.9  
Conversion of Class B to Class A common stock0.1 (0.1)0.1 (0.1)
Balance at end of period924.2 7.1 941.4 7.5 

MASTERCARD MARCH 31, 2024 FORM 10-Q 17


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In December 2023 and 2022, the Company’s Board of Directors approved share repurchase programs of its Class A common stock authorizing the Company to repurchase up to $11.0 billion and $9.0 billion, respectively. The following table summarizes the Company’s share repurchases of its Class A common stock:
Three Months Ended March 31,
20242023
(in millions, except per share data)
Dollar-value of shares repurchased 1
$1,992 $2,878 
Shares repurchased4.4 8.0 
Average price paid per share$454.23 $361.70 
1The dollar-value of shares repurchased does not include a 1% excise tax. The incremental tax is recorded in treasury stock on the consolidated balance sheet.
As of March 31, 2024, the remaining authorization under the share repurchase programs approved by the Company’s Board of Directors was $12.2 billion.
Note 10. Accumulated Other Comprehensive Income (Loss)
The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2024 and 2023 were as follows:
December 31, 2023Increase / (Decrease)ReclassificationsMarch 31, 2024
(in millions)
Foreign currency translation adjustments 1
$(1,119)$(159)$ $(1,278)
Translation adjustments on net investment hedges 2
181 36  217 
Cash flow hedges
Foreign exchange contracts 3
(17)17 2 2 
Interest rate contracts(118) 1 (117)
Defined benefit pension and other postretirement plans(25)  (25)
Investment securities available-for-sale(1)  (1)
Accumulated other comprehensive income (loss)$(1,099)$(106)$3 $(1,202)
December 31, 2022Increase / (Decrease)ReclassificationsMarch 31, 2023
(in millions)
Foreign currency translation adjustments 1
$(1,414)$80 $ $(1,334)
Translation adjustments on net investment hedges 2
309 (57) 252 
Cash flow hedges
Foreign exchange contracts 3
(8)(10)8 (10)
Interest rate contracts(123) 1 (122)
Defined benefit pension and other postretirement plans(11)  (11)
Investment securities available-for-sale(6)2  (4)
Accumulated other comprehensive income (loss)$(1,253)$15 $9 $(1,229)
1During the three months ended March 31, 2024, the increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the depreciation of the euro and British pound against the U.S. dollar. During the three months ended March 31, 2023, the decrease in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the appreciation of the euro and British pound against the U.S. dollar.
2During the three months ended March 31, 2024, the increase in the accumulated other comprehensive gain related to the net investment hedges was driven by the depreciation of the euro against the U.S. dollar. During the three months ended March 31, 2023, the decrease in the accumulated other comprehensive gain related to the net investment hedges was driven by the appreciation of the euro against the U.S. dollar. See Note 15 (Derivative and Hedging Instruments) for additional information.
3Certain foreign exchange derivative contracts are designated as cash flow hedging instruments. Gains and losses resulting from changes in the fair value of these contracts are deferred in accumulated other comprehensive income (loss) and subsequently reclassified to the consolidated statement of operations when the underlying hedged transactions impact earnings. See Note 15 (Derivative and Hedging Instruments) for additional information.

18 MASTERCARD MARCH 31, 2024 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 11. Share-Based Payments
During the three months ended March 31, 2024, the Company granted the following awards under the Mastercard Incorporated 2006 Long Term Incentive Plan, amended and restated as of June 22, 2021 (the “LTIP”). The LTIP is a stockholder-approved plan that permits the grant of various types of equity awards to employees.
Grants in 2024Weighted-Average
Grant-Date
Fair Value
(in millions)(per option/unit)
Non-qualified stock options0.2$165 
Restricted stock units0.9$472 
Performance stock units0.2$513 
The Company uses the Black-Scholes option pricing model to determine the grant-date fair value of stock options and calculates the expected life and the expected volatility based on historical Mastercard information. The expected life of stock options granted in 2024 was estimated to be six years, while the expected volatility was determined to be 28.7%. These awards expire ten years from the date of grant and vest ratably over three years.
The fair value of restricted stock units (“RSUs”) is determined and fixed on the grant date based on the Company’s Class A common stock price, adjusted for the exclusion of dividend equivalents. RSUs generally vest ratably over three years.
The Company uses the Monte Carlo simulation valuation model to determine the grant-date fair value of performance stock units (“PSUs”) granted. PSUs vest after three years from the date of grant and are subject to a mandatory one-year deferral period, during which vested PSUs are eligible for dividend equivalents.
Compensation expense is recorded net of estimated forfeitures over the shorter of the vesting period or the date the individual becomes eligible to retire under the LTIP. The Company uses the straight-line method of attribution over the requisite service period for expensing equity awards.
Note 12. Income Taxes
The effective income tax rates were 15.4% and 17.2% for the three months ended March 31, 2024 and 2023, respectively. The lower effective income tax rate for the three months ended March 31, 2024, versus the comparable period in 2023, was primarily due to a change in the Company’s geographic mix of earnings as well as discrete tax benefits related to share-based payments.
The Company is subject to tax in the United States, Belgium, Singapore, the United Kingdom and various other foreign jurisdictions, as well as state and local jurisdictions. Uncertain tax positions are reviewed on an ongoing basis and are adjusted after considering facts and circumstances, including progress of tax audits, developments in case law and closing of statutes of limitation. Within the next twelve months, the Company believes that the resolution of certain federal, foreign and state and local examinations is reasonably possible and that a change in estimate, reducing unrecognized tax benefits, may occur. While such a change may be significant, it is not possible to provide a range of the potential change until the examinations progress further or the related statutes of limitation expire. The Company has effectively settled its U.S. federal income tax obligations through 2014. With limited exception, the Company is no longer subject to state and local or foreign examinations by tax authorities for years before 2014.
Note 13. Legal and Regulatory Proceedings
Mastercard is a party to legal and regulatory proceedings with respect to a variety of matters in the ordinary course of business.  Some of these proceedings are based on complex claims involving substantial uncertainties and unascertainable damages.  Accordingly, it is not possible to determine the probability of loss or estimate damages, and therefore, Mastercard has not established liabilities for any of these proceedings, except as discussed below. When the Company determines that a loss is both probable and reasonably estimable, Mastercard records a liability and discloses the amount of the liability if it is material. When a material loss contingency is only reasonably possible, Mastercard does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Unless otherwise stated below with respect to these matters, Mastercard cannot provide an estimate of the possible loss or range of loss based on one or more of the following reasons: (1) actual or potential plaintiffs have not claimed an amount of monetary damages or the amounts are unsupportable or exaggerated, (2) the matters are in early stages, (3) there is uncertainty as to the outcome of pending appeals or motions, (4) there are significant factual issues to be resolved, (5) the proceedings involve multiple defendants or potential defendants whose share of any potential financial responsibility has yet to be determined and/or (6) there are novel legal issues presented. Furthermore, except as identified with respect to the matters below, Mastercard does not believe that the outcome of any individual existing legal or regulatory proceeding to which it is a party will have a material adverse effect on its results of operations, financial condition and overall business. However, an adverse judgment or other outcome or settlement with respect to any proceedings discussed below could result in fines or payments by Mastercard and/or could require Mastercard to change its business practices. In addition, an adverse outcome in a regulatory proceeding could lead to the filing of civil damage claims and possibly result in significant

MASTERCARD MARCH 31, 2024 FORM 10-Q 19


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
damage awards. Any of these events could have a material adverse effect on Mastercard’s results of operations, financial condition and overall business.
Interchange Litigation and Regulatory Proceedings
Mastercard’s interchange fees and other practices are subject to regulatory, legal review and/or challenges in a number of jurisdictions, including the proceedings described below. When taken as a whole, the resulting decisions, regulations and legislation with respect to interchange fees and acceptance practices may have a material adverse effect on the Company’s prospects for future growth and its overall results of operations and financial condition.
United States. In 2005, the first of a series of complaints were filed on behalf of merchants (the majority of the complaints were styled as class actions, although a few complaints were filed on behalf of individual merchant plaintiffs) against Mastercard International, Visa U.S.A., Inc., Visa International Service Association and a number of financial institutions. Taken together, the claims in the complaints were generally brought under both Sections 1 and 2 of the Sherman Act, which prohibit monopolization and attempts or conspiracies to monopolize a particular industry, and some of these complaints contain unfair competition law claims under state law. The complaints allege, among other things, that Mastercard, Visa, and certain financial institutions conspired to set the price of interchange fees, enacted point of sale acceptance rules (including the “no surcharge” rule) in violation of antitrust laws and engaged in unlawful tying and bundling of certain products and services, resulting in merchants paying excessive costs for the acceptance of Mastercard and Visa credit and debit cards. The cases were consolidated for pre-trial proceedings in the U.S. District Court for the Eastern District of New York in MDL No. 1720 (the “U.S. MDL Litigation Cases”). The plaintiffs filed a consolidated class action complaint seeking treble damages.
In 2006, the group of purported merchant class plaintiffs filed a supplemental complaint alleging that Mastercard’s initial public offering of its Class A Common Stock in May 2006 (the “IPO”) and certain purported agreements entered into between Mastercard and financial institutions in connection with the IPO: (1) violate U.S. antitrust laws and (2) constituted a fraudulent conveyance because the financial institutions allegedly attempted to release, without adequate consideration, Mastercard’s right to assess them for Mastercard’s litigation liabilities. The class plaintiffs sought treble damages and injunctive relief including, but not limited to, an order reversing and unwinding the IPO.
In 2011, Mastercard and Mastercard International entered into each of: (1) an omnibus judgment sharing and settlement sharing agreement with Visa Inc., Visa U.S.A. Inc. and Visa International Service Association and a number of financial institutions; and (2) a Mastercard settlement and judgment sharing agreement with a number of financial institutions.  The agreements provide for the apportionment of certain costs and liabilities which Mastercard, the Visa parties and the financial institutions may incur, jointly and/or severally, in the event of an adverse judgment or settlement of one or all of the U.S. MDL Litigation Cases. Among a number of scenarios addressed by the agreements, in the event of a global settlement involving the Visa parties, the financial institutions and Mastercard, Mastercard would pay 12% of the monetary portion of the settlement. In the event of a settlement involving only Mastercard and the financial institutions with respect to their issuance of Mastercard cards, Mastercard would pay 36% of the monetary portion of such settlement. 
In 2012, the parties entered into a definitive settlement agreement with respect to the U.S. MDL Litigation Cases (including with respect to the claims related to the IPO) and the defendants separately entered into a settlement agreement with the individual merchant plaintiffs. The settlements included cash payments that were apportioned among the defendants pursuant to the omnibus judgment sharing and settlement sharing agreement described above. Mastercard also agreed to provide class members with a short-term reduction in default credit interchange rates and to modify certain of its business practices, including its no surcharge rule. The court granted final approval of the settlement in 2013. Following an appeal by objectors and as a result of a reversal by the U.S. Court of Appeals for the Second Circuit, the district court divided the merchants’ claims into two separate classes - monetary damages claims (the “Damages Class”) and claims seeking changes to business practices (the “Rules Relief Class”). The court appointed separate counsel for each class.
In 2018, the parties to the Damages Class litigation entered into a class settlement agreement to resolve the Damages Class claims, with merchants representing slightly more than 25% of the Damages Class interchange volume choosing to opt out of the settlement. The Damages Class settlement agreement became final in August 2023. Since 2018, Mastercard has reached settlements or agreements in principle to settle with over 250 opt-out merchants. These opt-out merchant settlements, along with the Damages Class settlement, represent over 90% of Mastercard’s U.S. interchange volume. During the first quarter of 2024, the district court denied the defendants’ motions for summary judgment with respect to the ongoing individual opt-out merchant cases. The defendants and the opt-out merchants are in discussions regarding next steps, including whether the individual opt-out cases should be sent back to the original jurisdictions in which the cases were filed for potential trials.
In 2021, the district court granted the Rules Relief Class’s motion for class certification. In March 2024, the parties to the Rules Relief Class litigation entered into a settlement agreement to resolve the Rules Relief Class claims, which is subject to court approval. The court has scheduled argument on preliminary approval for June 2024.

20 MASTERCARD MARCH 31, 2024 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2024 and December 31, 2023, Mastercard had accrued a liability of $499 million and $596 million, respectively, for the U.S. MDL Litigation Cases. The liability as of March 31, 2024 represents Mastercard’s best estimate of its probable liabilities in these matters and does not represent an estimate of a loss, if any, if the matters were litigated to a final outcome. Mastercard cannot estimate the potential liability if that were to occur.
Europe. Since 2012, a number of United Kingdom (“U.K.”) merchants filed claims or threatened litigation against Mastercard seeking damages for excessive costs paid for acceptance of Mastercard credit and debit cards arising out of alleged anti-competitive conduct with respect to, among other things, Mastercard’s cross-border interchange fees and its U.K. and Ireland domestic interchange fees (the “U.K. Merchant claimants”). In addition, Mastercard has faced similar filed or threatened litigation by merchants with respect to interchange rates in other countries in Europe (the “Pan-European Merchant claimants”). Mastercard has resolved a substantial amount of these damages claims through settlement or judgment. Following these settlements, approximately £0.9 billion (approximately $1.1 billion as of March 31, 2024) of unresolved damages claims remain. Mastercard continues to litigate with the remaining U.K. and Pan-European Merchant claimants and it has submitted statements of defense disputing liability and damages claims. A number of those matters are now progressing with motion practice and discovery. A hearing involving multiple merchant cases was completed in March 2024 concerning certain liability issues with respect to merchant claims for damages related to post-Interchange Fee Regulation consumer interchange fees as well as commercial and inter-regional interchange fees.
In a separate matter, Mastercard and Visa were served with a proposed collective action complaint in the U.K. on behalf of merchants seeking damages for commercial card transactions in both the U.K. and the European Union. In December 2023, the plaintiffs filed a revised collective action application claiming damages against Mastercard in excess of £1.0 billion (approximately $1.3 billion as of March 31, 2024). A hearing on this application occurred in April 2024.
In 2016, a proposed collective action was filed in the United Kingdom on behalf of U.K. consumers seeking damages for intra-EEA and domestic U.K. interchange fees that were allegedly passed on to consumers by merchants between 1992 and 2008. The complaint, which seeks to leverage the European Commission’s 2007 decision on intra-EEA interchange fees, claims damages in an amount that exceeds £10 billion (approximately $13 billion as of March 31, 2024). In 2021, the trial court issued a decision in which it granted class certification to the plaintiffs but narrowed the scope of the class. Since January 2023, the trial court has held hearings on various issues, including whether any causal connection existed between the levels of Mastercard’s intra-EEA interchange fees and U.K. domestic interchange fees and regarding Mastercard’s request to narrow the number of years of damages sought by the plaintiffs on statute of limitations grounds. In February 2024, the trial court ruled in Mastercard’s favor, finding no causal connection between the levels of Mastercard’s intra-EEA interchange and U.K. domestic interchange fees. The plaintiffs have requested permission to appeal this ruling.
Mastercard has been named as a defendant in a proposed consumer collective action filed in Portugal on behalf of Portuguese consumers. The complaint, which seeks to leverage the 2019 resolution of the European Commission’s investigation of Mastercard’s central acquiring rules and interregional interchange fees, claims damages of approximately €0.4 billion (approximately $0.4 billion as of March 31, 2024) for interchange fees that were allegedly passed on to consumers by Portuguese merchants for a period of approximately 20 years. Mastercard has submitted a statement of defense that disputes both liability and damages.
Australia. In 2022, the Australian Competition & Consumer Commission (“ACCC”) filed a complaint targeting certain agreements entered into by Mastercard and certain Australian merchants related to Mastercard’s debit program. The ACCC alleges that by entering into such agreements, Mastercard engaged in conduct with the purpose of substantially lessening competition in the supply of debit card acceptance services. The ACCC seeks both declaratory relief and monetary fines and costs. A hearing on liability issues has been scheduled for March 2025.
ATM Non-Discrimination Rule Surcharge Complaints
In 2011, a trade association of independent ATM operators and 13 independent ATM operators filed a complaint styled as a class action lawsuit in the U.S. District Court for the District of Columbia against both Mastercard and Visa (the “ATM Operators Class Complaint”).  Plaintiffs seek to represent a class of non-bank operators of ATM terminals that operate in the United States with the discretion to determine the price of the ATM access fee for the terminals they operate. Plaintiffs allege that Mastercard and Visa have violated Section 1 of the Sherman Act by imposing rules that require ATM operators to charge non-discriminatory ATM surcharges for transactions processed over Mastercard’s and Visa’s respective networks that are not greater than the surcharge for transactions over other networks accepted at the same ATM.  Plaintiffs seek both injunctive and monetary relief equal to treble the damages they claim to have sustained as a result of the alleged violations and their costs of suit, including attorneys’ fees. 
Subsequently, multiple related complaints were filed in the U.S. District Court for the District of Columbia alleging both federal antitrust and multiple state unfair competition, consumer protection and common law claims against Mastercard and Visa on behalf of different putative classes of users of ATM services. The claims in these actions largely mirror the allegations made in the ATM Operators Class Complaint, although these complaints seek damages on behalf of consumers of ATM services who pay allegedly inflated ATM fees at both bank (“Bank ATM Consumer Class Complaint”) and non-bank (“Non-bank ATM Consumer Class Complaint”) ATM operators as a result of the defendants’ ATM rules. Plaintiffs seek both injunctive and monetary relief equal to treble the damages they claim to have sustained as a result of the alleged violations and their costs of suit, including attorneys’ fees. 

MASTERCARD MARCH 31, 2024 FORM 10-Q 21


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In 2019, the plaintiffs in all three class complaints filed with the district court their motions for class certification. In July 2023, the D.C. Circuit Court affirmed the district court’s previous order granting class certification. The U.S. Supreme Court declined to hear the defendants’ appeal of the certification decision.
In March 2024, Mastercard agreed to a term sheet with the class lawyers representing the Bank ATM Consumer Class to settle those claims. The parties are negotiating a settlement agreement which would be subject to court approval. During the first quarter of 2024, Mastercard recorded an accrual of $93 million in connection with this matter. The litigation with the ATM Operators Class and Non-bank ATM Consumer Class is ongoing. The plaintiffs in these two remaining class complaints, in aggregate, allege over $1 billion in damages against all of the defendants.
U.S. Liability Shift Litigation
In 2016, a proposed U.S. merchant class action complaint was filed in federal court in California alleging that Mastercard, Visa, American Express and Discover (the “Network Defendants”), EMVCo, and a number of issuing banks (the “Bank Defendants”) engaged in a conspiracy to shift fraud liability for card present transactions from issuing banks to merchants not yet in compliance with the standards for EMV chip cards in the United States (the “EMV Liability Shift”), in violation of the Sherman Act and California law. Plaintiffs allege damages equal to the value of all chargebacks for which class members became liable as a result of the EMV Liability Shift on October 1, 2015. The plaintiffs seek treble damages, attorney’s fees and costs and an injunction against future violations of governing law. The district court denied the Network Defendants’ motion to dismiss the complaint, but granted such a motion for EMVCo and the Bank Defendants. In 2017, the district court transferred the case to New York so that discovery could be coordinated with the U.S. MDL Litigation Cases described above. In 2020, the district court issued an order granting the plaintiffs’ request for class certification. The plaintiffs have submitted expert reports that allege aggregate damages in excess of $1 billion against the four Network Defendants. The Network Defendants have submitted expert reports rebutting both liability and damages and all briefs on summary judgment have been submitted.
Telephone Consumer Protection Class Action
Mastercard is a defendant in a Telephone Consumer Protection Act (“TCPA”) class action pending in Florida. The plaintiffs are individuals and businesses who allege that approximately 381,000 unsolicited faxes were sent to them advertising a Mastercard co-brand card issued by First Arkansas Bank (“FAB”). The TCPA provides for uncapped statutory damages of $500 per fax. Mastercard has asserted various defenses to the claims, and has notified FAB of an indemnity claim that it has (which FAB has disputed). In 2019, the Federal Communications Commission (“FCC”) issued a declaratory ruling clarifying that the TCPA does not apply to faxes sent to online fax services that are received online via email. In 2021, the trial court granted plaintiffs’ request for class certification, but narrowed the scope of the class to stand alone fax recipients only. Mastercard’s request to appeal that decision was denied. Briefing on plaintiffs’ motion to amend the class definition and Mastercard’s cross-motion to decertify the stand alone fax recipient class was completed in April 2023 and the parties await the court’s decision.
U.S. Department of Justice Investigation
In March 2023, Mastercard received a Civil Investigative Demand (“CID”) from the U.S. Department of Justice Antitrust Division (“DOJ”) seeking documents and information regarding a potential violation of Sections 1 or 2 of the Sherman Act. The CID focuses on Mastercard’s U.S. debit program and competition with other payment networks and technologies. Mastercard is cooperating with the DOJ in connection with the CID.
Note 14. Settlement and Other Risk Management
Mastercard’s rules guarantee the settlement of many of the payment network transactions between its customers (“settlement risk”). Settlement exposure is the settlement risk to customers under Mastercard’s rules due to the difference in timing between the payment transaction date and subsequent settlement. For those transactions the Company guarantees, the guarantee will cover the full amount of the settlement obligation to the extent the settlement obligation is not otherwise satisfied. The duration of the settlement exposure is short-term and generally limited to a few days.
Gross settlement exposure is estimated using the average daily payment volume during the three months prior to period end multiplied by the estimated number of days of exposure. The Company has global risk management policies and procedures, which include risk standards, to provide a framework for managing the Company’s settlement risk and exposure. In the event of failed settlement by a customer, Mastercard may pursue one or more remedies available under the Company’s rules to recover potential losses. Historically, the Company has experienced a low level of losses from customer settlement failures.
As part of its policies, Mastercard requires certain customers that do not meet the Company’s risk standards to enter into risk mitigation arrangements, including cash collateral and/or forms of credit enhancement such as letters of credit and guarantees. This requirement is based on a review of the individual risk circumstances for each customer. Mastercard monitors its credit risk portfolio and the adequacy of its risk mitigation arrangements on a regular basis. Additionally, the Company periodically reviews its risk management methodology and standards. As such, the amounts of estimated settlement exposure are revised as necessary.

22 MASTERCARD MARCH 31, 2024 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company’s estimated settlement exposure was as follows:
March 31,
2024
December 31,
2023
(in millions)
Gross settlement exposure
$73,775 $75,023 
Risk mitigation arrangements applied to settlement exposure
(12,549)(12,167)
Net settlement exposure
$61,226 $62,856 
Mastercard also provides guarantees to customers and certain other counterparties indemnifying them from losses stemming from failures of third parties to perform duties. This includes guarantees of Mastercard-branded travelers cheques issued, but not yet cashed of $336 million and $340 million at March 31, 2024 and December 31, 2023, respectively, of which the Company has risk mitigation arrangements for $269 million and $272 million at March 31, 2024 and December 31, 2023, respectively. In addition, the Company enters into agreements in the ordinary course of business under which the Company agrees to indemnify third parties against damages, losses and expenses incurred in connection with legal and other proceedings arising from relationships or transactions with the Company. Certain indemnifications do not provide a stated maximum exposure. As the extent of the Company’s obligations under these agreements depends entirely upon the occurrence of future events, the Company’s potential future liability under these agreements is not determinable. Historically, payments made by the Company under these types of contractual arrangements have not been material.
Note 15. Derivative and Hedging Instruments
The Company monitors and manages its foreign currency and interest rate exposures as part of its overall risk management program which focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. A primary objective of the Company’s risk management strategies is to reduce the financial impact that may arise from volatility in foreign currency exchange rates principally through the use of both foreign exchange derivative contracts and foreign currency denominated debt. In addition, the Company may enter into interest rate derivative contracts to manage the effects of interest rate movements on the Company’s aggregate liability portfolio, including potential future debt issuances. The Company does not enter into derivatives for speculative purposes.
Cash Flow Hedges
The Company may enter into foreign exchange derivative contracts, including forwards and options, to manage the impact of foreign currency variability on anticipated revenues and expenses, which fluctuate based on currencies other than the functional currency of the entity. The objective of these hedging activities is to reduce the effect of movement in foreign exchange rates for a portion of revenues and expenses forecasted to occur. As these contracts are designated as cash flow hedging instruments, gains and losses resulting from changes in fair value of these contracts are deferred in accumulated other comprehensive income (loss) and subsequently reclassified to the consolidated statement of operations when the underlying hedged transactions impact earnings.
In addition, the Company may enter into interest rate derivative contracts to manage the effects of interest rate movements on the Company’s aggregate liability portfolio, including potential future debt issuances, and designate such derivatives as hedging instruments in a cash flow hedging relationship. Gains and losses resulting from changes in fair value of these contracts are deferred in accumulated other comprehensive income (loss) and are subsequently reclassified as an adjustment to interest expense over the respective terms of the hedged debt issuances.
Fair Value Hedges
The Company may enter into interest rate derivative contracts, including interest rate swaps, to manage the effects of interest rate movements on the fair value of the Company's fixed-rate debt and designate such derivatives as hedging instruments in a fair value hedging relationship. Changes in fair value of these contracts and changes in fair value of fixed-rate debt attributable to changes in the hedged benchmark interest rate generally offset each other and are recorded in interest expense on the consolidated statement of operations. Gains and losses related to the net settlements of interest rate swaps are also recorded in interest expense on the consolidated statement of operations. The periodic cash settlements are included in operating activities on the consolidated statement of cash flows.
In 2021, the Company entered into an interest rate swap designated as a fair value hedge related to $1.0 billion of the 3.850% Senior Notes due March 2050. In effect, the interest rate swap synthetically converts the fixed interest rate on this debt to a variable interest rate based on the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap Rate. The net impact to interest expense for the three months ended March 31, 2024 and 2023 was not material.

MASTERCARD MARCH 31, 2024 FORM 10-Q 23


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Net Investment Hedges
The Company may use foreign currency denominated debt and/or foreign exchange derivative contracts to hedge a portion of its net investment in foreign subsidiaries against adverse movements in exchange rates. The effective portion of the net investment hedge is recorded as a currency translation adjustment in accumulated other comprehensive income (loss). Forward points are excluded from the effectiveness assessment and are recognized in general and administrative expenses on the consolidated statement of operations over the hedge period. The amounts recognized in earnings related to forward points for the three months ended March 31, 2024 and 2023 were not material.
As of March 31, 2024 and December 31, 2023, the Company had €1.6 billion euro-denominated debt outstanding designated as hedges of a portion of its net investment in its European operations. For the three months ended March 31, 2024 and 2023, the Company recorded pre-tax net foreign currency gains (losses) of $44 million and $(35) million, respectively, in other comprehensive income (loss).
As of March 31, 2024 and December 31, 2023, the Company had net foreign currency gains of $217 million and $181 million, after tax, respectively, in accumulated other comprehensive income (loss) associated with this hedging activity.
Non-designated Derivatives
The Company may also enter into foreign exchange derivative contracts to serve as economic hedges, such as to offset possible changes in the value of monetary assets and liabilities due to foreign exchange fluctuations, without designating these derivative contracts as hedging instruments. In addition, the Company is subject to foreign exchange risk as part of its daily settlement activities. This risk is typically limited to a few days between when a payment transaction takes place and the subsequent settlement with customers. To manage this risk, the Company may enter into short duration foreign exchange derivative contracts based upon anticipated receipts and disbursements for the respective currency position. The objective of these activities is to reduce the Company’s exposure to volatility arising from gains and losses resulting from fluctuations of foreign currencies against its functional currencies. Gains and losses resulting from changes in fair value of these contracts are recorded in general and administrative expenses on the consolidated statement of operations, net, along with the foreign currency gains and losses on monetary assets and liabilities.
The following table summarizes the fair value of the Company’s derivative financial instruments and the related notional amounts:
March 31, 2024December 31, 2023
 NotionalDerivative assetsDerivative liabilitiesNotionalDerivative assetsDerivative liabilities
(in millions)
Derivatives designated as hedging instruments
Foreign exchange contracts in a cash flow hedge 1
$951 $13 $11 $1,006 $2 $25 
Interest rate contracts in a fair value hedge 2
1,000  88 1,000  79 
Derivatives not designated as hedging instruments
Foreign exchange contracts 1
5,526 41 20 5,424 34 79 
Total derivative assets/liabilities$7,477 $54 $119 $7,430 $36 $183 
1Foreign exchange derivative assets and liabilities are included within prepaid expenses and other current assets and other current liabilities, respectively, on the consolidated balance sheet.
2Interest rate derivative liabilities are included within other current liabilities and other liabilities on the consolidated balance sheet.
The pre-tax gain (loss) related to the Company's derivative financial instruments designated as hedging instruments are as follows:
Gain (Loss)
Recognized in OCI
Gain (Loss)
Reclassified from AOCI
Three Months Ended March 31,Location of Gain (Loss) Reclassified from AOCI into EarningsThree Months Ended March 31,
2024202320242023
(in millions)(in millions)
Derivative financial instruments in a cash flow hedge relationship:
Foreign exchange contracts$22 $(10)Net revenue$(3)$(6)
Interest rate contracts$ $ Interest expense$(2)$(2)
Derivative financial instruments in a net investment hedge relationship:
Foreign exchange contracts $3 $(39)

24 MASTERCARD MARCH 31, 2024 FORM 10-Q


PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company estimates that the pre-tax amount of the net deferred loss on cash flow hedges recorded in accumulated other comprehensive income (loss) at March 31, 2024 that will be reclassified into the consolidated statement of operations within the next 12 months is not material. The term of the foreign exchange derivative contracts designated in hedging relationships are generally less than 18 months.
The amount of gain (loss) recognized on the consolidated statement of operations for non-designated derivative contracts is summarized below: 
 Three Months Ended March 31,
Derivatives not designated as hedging instruments:20242023
(in millions)
Foreign exchange contracts
General and administrative$72 $15 
The Company’s derivative financial instruments are subject to both market and counterparty credit risk. Market risk is the potential for economic losses to be incurred on market risk sensitive instruments arising from adverse changes in market factors such as foreign currency exchange rates, interest rates and other related variables. Counterparty credit risk is the risk of loss due to failure of the counterparty to perform its obligations in accordance with contractual terms. The Company’s derivative contracts are subject to enforceable master netting arrangements, which contain various netting and setoff provisions. However, the Company has elected to present derivative assets and liabilities on a gross basis on the consolidated balance sheet. To mitigate counterparty credit risk, the Company enters into derivative contracts with a diversified group of selected financial institutions based upon their credit ratings and other factors. Generally, the Company does not obtain collateral related to derivatives because of the high credit ratings of the counterparties.

MASTERCARD MARCH 31, 2024 FORM 10-Q 25


PART I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Item 2. Management’s discussion and analysis of financial condition and results of operations
The following supplements management's discussion and analysis of Mastercard Incorporated for the year ended December 31, 2023 as contained in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 13, 2024. It also should be read in conjunction with the consolidated financial statements and notes of Mastercard Incorporated and its consolidated subsidiaries, including Mastercard International Incorporated (together, “Mastercard” or the “Company”), included elsewhere in this Report. Percentage changes provided throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations” were calculated on amounts rounded to the nearest thousand.

Financial Results Overview
The following table provides a summary of our key GAAP operating results, as reported:
Three Months Ended March 31,Increase/(Decrease)
20242023
(in millions, except per share data)
Net revenue$6,348 $5,748 10%
Operating expenses$2,744 $2,612 5%
Operating income$3,604 $3,136 15%
Operating margin56.8 %54.6 %2.2 ppt
Income tax expense$547 $492 11%
Effective income tax rate15.4 %17.2 %(1.9) ppt
Net income$3,011 $2,361 28%
Diluted earnings per share$3.22 $2.47 30%
Diluted weighted-average shares outstanding935 956 (2)%
Note: Table may not sum due to rounding.
The following table provides a summary of our key non-GAAP operating results1, adjusted to exclude the impact of gains and losses on our equity investments, Special Items (which represent litigation judgments and settlements and certain one-time items) and the related tax impacts on our non-GAAP adjustments. In addition, we have presented growth rates, adjusted for the impact of currency:
Three Months Ended March 31,Increase/(Decrease)
20242023As adjustedCurrency-neutral
($ in millions, except per share data)
Net revenue
$6,348 $5,748 10%11%
Adjusted operating expenses$2,617 $2,401 9%9%
Adjusted operating margin58.8 %58.2 %0.5 ppt0.7 ppt
Adjusted effective income tax rate15.9 %18.3 %(2.3) ppt(2.4) ppt
Adjusted net income$3,093 $2,678 16%16%
Adjusted diluted earnings per share$3.31 $2.80 18%19%
Note: Table may not sum due to rounding.
1    See “Non-GAAP Financial Information” for further information on our non-GAAP adjustments and the reconciliation to GAAP reported amounts.

26 MASTERCARD MARCH 31, 2024 FORM 10-Q


PART I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Key highlights for the three months ended March 31, 2024, versus the comparable period in 2023:
Net revenue
Three Months Ended March 31, 2024
GAAPNon-GAAP
(currency-neutral)
Both the as reported and currency-neutral net revenue increase was attributable to growth in our payment network and value-added services and solutions.
up 10%up 11%
Operating expensesAdjusted
operating expenses
Three Months Ended March 31, 2024
GAAP
Non-GAAP
(currency-neutral)
The as reported operating expense increase was primarily due to higher general and administrative expenses, partially offset by lower litigation provisions and advertising and marketing expenses. The as adjusted operating expense increase was primarily due to higher general and administrative expenses, partially offset by lower advertising and marketing expenses.
up 5%up 9%