UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 3, 2003
MASTERCARD INCORPORATED
(Exact name of registrant as specified in its charter)
DELAWARE - 13-4172551
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
2000 PURCHASE STREET
PURCHASE, NEW YORK 10577
(Address of principal executive offices) (Zip Code)
(914) 249-2000
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
ITEM 9. REGULATION FD DISCLOSURE.
Set forth below are tables that provide information regarding the
performance results for the three months and year ended December 31, 2002 for
the payment programs of MasterCard International Incorporated and MasterCard
Europe sprl (collectively, "MasterCard"), the principal operating subsidiaries
of MasterCard Incorporated. In addition, set forth below are tables that
provide information regarding MasterCard's payment programs for the years
ended December 31, 2000 and 2001, in each case restated to present the
information on the same basis as the information in the tables for the three
months and year ended December 31, 2002.
The tables set forth the gross dollar volume ("GDV"), purchase volume,
cash volume and the number of purchase transactions, cash transactions, accounts
and cards on a regional basis for MasterCard(R)-branded cards. Growth rates over
prior periods are provided for volume-based data.
FOR THE 3 MONTHS ENDED DECEMBER 31, 2002
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GDV GROWTH PURCHASE GROWTH PURCHASE
VOLUME TRANSACTIONS
(Billions) (Local) (Billions) (Local) (Millions)
---------- ------- ---------- ------- ------------
ALL PROGRAMS EXCEPT
ON-LINE DEBIT PROGRAMS
South Asia / Middle East Africa $ 2.3 22.8% $ 1.7 24.7% 39.7
Asia / Pacific 57.4 5.2% 32.2 6.0% 352.0
Europe 68.8 16.2% 52.4 17.0% 851.9
Latin America 8.9 25.9% 5.6 16.6% 168.0
Canada 8.9 13.4% 7.6 16.0% 133.0
United States 162.7 12.2% 122.6 14.2% 1,727.9
Worldwide 308.9 12.2% 222.0 13.7% 3,272.5
CREDIT PROGRAMS
United States 131.5 12.0% 103.3 13.4% 1,267.0
Worldwide 255.3 11.5% 191.0 13.2% 2,559.8
OFF-LINE DEBIT PROGRAMS
United States 31.1 13.3% 19.4 18.4% 460.9
Worldwide 53.7 15.5% 31.1 17.4% 712.7
FOR THE 3 MONTHS ENDED DECEMBER 31, 2002
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CASH GROWTH CASH ACCOUNTS CARDS
VOLUME TRANSACTIONS
(Billions) (Local) (Millions) (Millions) (Millions)
---------- ------- ------------ ---------- ----------
ALL PROGRAMS EXCEPT
ON-LINE DEBIT PROGRAMS
South Asia / Middle East Africa $ .7 18.4% 6.8 6.7 7.7
Asia / Pacific 25.1 4.1% 51.7 102.4 112.5
Europe 16.4 13.9% 177.3 77.2 87.0
Latin America 3.3 45.3% 35.2 35.3 44.5
Canada 1.3 0.5% 4.2 18.5 24.4
United States 40.0 6.6% 161.2 250.7 314.0
Worldwide 86.9 8.3% 436.4 490.8 590.1
CREDIT PROGRAMS
United States 28.2 6.9% 22.8 210.0 266.9
Worldwide 64.3 6.7% 171.3 426.7 514.3
OFF-LINE DEBIT PROGRAMS
United States 11.8 5.8% 138.4 40.7 47.1
Worldwide 22.6 12.9% 265.0 64.1 75.8
FOR THE YEAR ENDED DECEMBER 31, 2002
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GDV GROWTH PURCHASE GROWTH PURCHASE
VOLUME TRANSACTIONS
(Billions) (Local) (Billions) (Local) (Millions)
---------- ------- ---------- ------- ------------
ALL PROGRAMS EXCEPT
ON-LINE DEBIT PROGRAMS
South Asia / Middle East Africa $ 8.0 23.0% $ 5.6 23.6% 141.0
Asia / Pacific 223.2 10.6% 121.2 6.9% 1,304.8
Europe 242.6 15.0% 184.1 15.1% 3,121.3
Latin America 33.3 26.2% 21.6 16.8% 597.0
Canada 32.3 18.0% 26.8 18.2% 475.4
United States 602.2 16.2% 443.7 15.9% 6,246.7
Worldwide 1,141.5 15.2% 803.0 14.4% 11,886.3
CREDIT PROGRAMS
United States 485.8 15.3% 374.1 15.2% 4,570.1
Worldwide 946.4 14.2% 692.5 13.7% 9,280.2
OFF-LINE DEBIT PROGRAMS
United States 116.4 19.9% 69.6 19.6% 1,676.7
Worldwide 195.1 20.1% 110.4 19.0% 2,606.1
FOR THE YEAR ENDED DECEMBER 31, 2002
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CASH GROWTH CASH ACCOUNTS CARDS
VOLUME TRANSACTIONS
(Billions) (Local) (Millions) (Millions) (Millions)
---------- ------- ------------ ---------- ----------
ALL PROGRAMS EXCEPT
ON-LINE DEBIT PROGRAMS
South Asia / Middle East Africa $ 2.4 21.7% 26.0 6.7 7.7
Asia / Pacific 101.9 15.5% 213.1 102.4 112.5
Europe 58.5 14.9% 673.4 77.2 87.0
Latin America 11.7 48.0% 123.8 35.3 44.5
Canada 5.5 16.9% 16.8 18.5 24.4
United States 158.5 17.0% 637.5 250.7 314.0
Worldwide 338.6 17.1% 1,690.6 490.8 590.1
CREDIT PROGRAMS
United States 111.8 15.7% 93.1 210.0 266.9
Worldwide 253.9 15.6% 676.1 426.7 514.3
OFF-LINE DEBIT PROGRAMS
United States 46.7 20.3% 544.4 40.7 47.1
Worldwide 84.7 21.5% 1,014.5 64.1 75.8
FOR THE YEAR ENDED DECEMBER 31, 2000
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GDV GROWTH PURCHASE GROWTH PURCHASE
VOLUME TRANSACTIONS
(Billions) (Local) (Billions) (Local) (Millions)
---------- ------- ---------- ------- ------------
ALL PROGRAMS EXCEPT
ON-LINE DEBIT PROGRAMS
South Asia / Middle East Africa $ 7.0 14.7% $ 4.9 14.4% 110.5
Asia / Pacific 181.5 32.3% 109.8 18.6% 879.2
Europe 191.4 14.4% 147.4 14.3% 2,481.3
Latin America 27.5 24.4% 22.6 18.9% 474.6
Canada 25.0 16.7% 20.8 13.4% 366.3
United States 432.1 21.4% 328.0 18.0% 4,513.7
Worldwide 864.5 21.7% 633.4 17.1% 8,825.6
CREDIT PROGRAMS
United States 360.3 18.7% 281.4 16.0% 3,422.5
Worldwide 738.5 20.5% 556.7 16.1% 7,038.3
OFF-LINE DEBIT PROGRAMS
United States 71.8 37.0% 46.6 31.7% 1,091.2
Worldwide 126.1 29.3% 76.7 24.6% 1,787.2
FOR THE YEAR ENDED DECEMBER 31, 2000
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CASH GROWTH CASH ACCOUNTS CARDS
VOLUME TRANSACTIONS
(Billions) (Local) (Millions) (Millions) (Millions)
---------- ------- ------------ ---------- ----------
ALL PROGRAMS EXCEPT
ON-LINE DEBIT PROGRAMS
South Asia / Middle East Africa $ 2.2 15.2% 18.9 4.6 5.3
Asia / Pacific 71.7 60.7% 162.8 73.0 82.4
Europe 44.0 14.9% 546.4 60.9 68.3
Latin America 4.9 57.1% 57.7 24.5 30.8
Canada 4.2 36.5% 16.4 12.7 16.9
United States 104.1 33.4% 365.8 187.2 235.3
Worldwide 231.1 36.7% 1,167.9 362.8 439.0
CREDIT PROGRAMS
United States 78.9 29.3% 85.8 158.5 200.2
Worldwide 181.8 36.5% 547.2 319.9 387.2
OFF-LINE DEBIT PROGRAMS
United States 25.2 47.9% 280.0 28.7 35.1
Worldwide 49.4 37.4% 620.7 42.9 51.9
FOR THE YEAR ENDED DECEMBER 31, 2001
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GDV GROWTH PURCHASE GROWTH PURCHASE
VOLUME TRANSACTIONS
(Billions) (Local) (Billions) (Local) (Millions)
---------- ------- ---------- ------- ------------
ALL PROGRAMS EXCEPT
ON-LINE DEBIT PROGRAMS
South Asia / Middle East Africa $ 7.3 20.7% $ 5.1 21.2% 125.0
Asia / Pacific 198.9 18.1% 112.5 8.6% 1,106.6
Europe 201.7 10.7% 153.6 9.6% 2,716.6
Latin America 31.9 26.3% 23.3 14.2% 537.6
Canada 27.7 15.3% 22.9 14.8% 406.1
United States 518.4 20.0% 382.9 16.8% 5,385.5
Worldwide 985.9 17.6% 700.3 13.6% 10,277.2
CREDIT PROGRAMS
United States 421.3 16.9% 324.7 15.4% 4,002.1
Worldwide 826.4 15.8% 609.3 12.7% 8,102.2
OFF-LINE DEBIT PROGRAMS
United States 97.1 35.2% 58.2 25.0% 1,383.3
Worldwide 159.5 28.3% 91.0 20.3% 2,175.0
FOR THE YEAR ENDED DECEMBER 31, 2001
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CASH GROWTH CASH ACCOUNTS CARDS
VOLUME TRANSACTIONS
(Billions) (Local) (Millions) (Millions) (Millions)
---------- ------- ------------ ---------- ----------
ALL PROGRAMS EXCEPT
ON-LINE DEBIT PROGRAMS
South Asia / Middle East Africa $ 2.2 19.4% 22.7 5.6 6.4
Asia / Pacific 86.5 33.2% 194.8 92.5 101.4
Europe 48.2 14.5% 604.9 69.8 78.1
Latin America 8.5 78.0% 96.9 33.2 39.9
Canada 4.7 17.9% 16.0 15.3 20.4
United States 135.5 30.1% 518.1 219.4 273.3
Worldwide 285.6 28.8% 1,453.3 435.7 519.4
CREDIT PROGRAMS
United States 96.6 22.4% 92.6 184.8 232.4
Worldwide 217.1 25.4% 615.6 379.9 454.0
OFF-LINE DEBIT PROGRAMS
United States 38.9 54.2% 425.4 34.6 40.9
Worldwide 68.5 40.8% 837.7 55.8 65.4
Maestro(R) and Cirrus(R) on-line debit transactions, Mondex(R)
transactions and other branded transactions are not included in the preceding
tables.
For purposes of the tables: GDV represents purchase volume plus cash
volume and includes the impact of balance transfers and convenience checks;
purchase volume means the aggregate dollar amount of purchases made with
MasterCard-branded cards for the relevant period; and cash volume means the
aggregate dollar amount of cash disbursements obtained with MasterCard-branded
cards for the relevant period. The number of cards includes virtual cards, which
are MasterCard-branded payment accounts in connection with which functional
cards are not generally issued.
The MasterCard payment product is comprised of both credit programs and
off-line debit programs, and certain data relating to each type of program is
included in the tables. Credit programs include MasterCard-branded credit and
charge programs. Off-line debit programs include MasterCard-branded debit
programs where the primary means of cardholder validation at the point of sale
is for cardholders to sign a sales receipt.
Information denominated in U.S. dollars is calculated by applying an
established U.S. dollar/local currency exchange rate for each local currency in
which MasterCard volumes are reported. These exchange rates are calculated on a
quarterly basis using the average exchange rate for each quarter. However,
MasterCard reports period-over-period rates of change in GDV, purchase volume
and cash volume solely on the basis of local currency information, in order to
eliminate the impact of changes in the value of foreign currencies against the
U.S. dollar in calculating such rates of change. Accordingly, the
period-over-period rates of change set forth in the tables cannot be
extrapolated directly by reference to dollar volume information presented by
MasterCard for the current and historical periods.
The data set forth in the GDV, purchase volume, purchase transactions,
cash volume and cash transactions columns are derived from information provided
by MasterCard members that is subject to logical and statistical verification by
MasterCard and partial cross-checking against information provided by
MasterCard's transaction processing systems. The data set forth in the accounts
and cards columns are derived from information provided by MasterCard members
and certain limited logical and statistical verification by MasterCard. A
portion of the data set forth in the tables is estimated. In addition, a portion
of the data set forth in the accounts and cards columns reflects the impact of
routine portfolio changes among members and other practices that may lead to
over counting of the underlying data in certain circumstances.
The tables include information with respect to MasterCard-branded
transactions that are not processed by MasterCard and transactions for which
MasterCard does not earn revenues.
Certain information in the preceding tables has been the subject of
prior public release by MasterCard. The information in the preceding tables for
the years ended December 31, 2000 and 2001 has been restated to conform to the
presentation of information in the tables for the three months and year ended
December 31, 2002 and to reflect revisions to certain historical statistical
information provided by MasterCard's members subsequent to the previous release
of this information by MasterCard.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MASTERCARD INCORPORATED
Date: February 3, 2003 By /s/ ROBERT W. SELANDER
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Robert W. Selander
President and Chief Executive Officer