Third-quarter net income of $1.0 billion, excluding a special item, or $0.91 per diluted share Third-quarter net income of $977 million, including a special item, or $0.86 per diluted share Third-quarter net revenue increase of 2%, to $2.5 billion Third-quarter gross dollar volume up 13% and purchase volume up 12%

PURCHASE, N.Y., October 29, 2015 – MasterCard Incorporated (NYSE:MA) today announced financial results for the third quarter of 2015. Excluding a special item, the company reported net income of $1.0 billion, up 1%, or 9% after adjusting for currency, and earnings per diluted share of $0.91, up 5% or 11% adjusted for currency, versus the year-ago period. Including the special item, a $50 million after-tax charge related to the termination of the U.S. employee pension plan, the company reported net income of $977 million, a decrease of 4%, or an increase of 3% after adjusting for currency, and earnings per diluted share of $0.86, a decrease of 1%, or an increase of 5% when adjusted for currency, versus the year-ago period. The net income and earnings per diluted share figures, excluding the special item, are reconciled to their comparable GAAP measures in the accompanying tables. Acquisitions had a $0.03 dilutive impact on earnings per diluted share in the quarter.

Net revenue for the third quarter of 2015 was $2.5 billion, a 2% increase versus the same period in 2014. Adjusted for currency, net revenue increased 8%. Net revenue growth was driven by the impact of the following:

An increase in cross-border volumes of 16%; A 13% increase in gross dollar volume, on a local currency basis, to $1.2 trillion; and An increase in processed transactions of 12%, to 12.3 billion.

These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes. Acquisitions contributed 1 percentage point to total net revenue growth.

Worldwide purchase volume during the quarter was up 12% on a local currency basis versus the third quarter of 2014, to $852 billion. As of September 30, 2015, the company’s customers had issued 2.2 billion MasterCard and Maestro-branded cards.

“We are pleased with the results we delivered this quarter, in spite of the ongoing uncertainty in the global economy. We continue to see double-digit growth in both volume and transactions in most of our regions around the world,” said Ajay Banga, president and CEO, MasterCard. “As the world becomes more digitally driven, our innovations and investments in things such as MasterPass, EMV and biometrics are helping to redefine the way people shop and pay with convenience and security.”

Excluding the special item, total operating expenses increased 1%, or 5% when adjusted for currency, to $1.1 billion during the third quarter of 2015 compared to the same period in 2014. Acquisitions contributed 4 percentage points of the FX-adjusted growth. Including the special item, total operating expenses increased 9%, or 13% when adjusted for currency, from the year-ago period.

Operating income for the third quarter of 2015 increased 2%, or 10% adjusted for currency, versus the year-ago period, excluding the special item. The company delivered an operating margin of 57.2%.

MasterCard reported other expense of $17 million in the third quarter of 2015, versus $2 million in the third quarter of 2014. The change was mainly driven by our share of equity losses from equity method investments and lower interest income.

MasterCard’s effective tax rate was 28.2% in the third quarter of 2015, versus a rate of 28.5% in the comparable period in 2014, excluding the special item. The decrease was primarily due to a larger repatriation benefit and a more favorable mix of taxable earnings, offset by a reduction in discrete benefits.

During the third quarter of 2015, MasterCard repurchased approximately 10 million shares of Class A common stock at a cost of approximately $930 million. Quarter-to-date through October 22nd, the company repurchased an additional 1.5 million shares at a cost of approximately $144 million, with $1.2 billion remaining under the current repurchase program authorization.

Year-to-Date 2015 Results

For the nine months ended September 30, 2015, excluding this quarter’s special item, as well as the $44 million after-tax charge relating to a U.K. merchant litigation settlement recorded in the second quarter of 2015, MasterCard reported net income of $3.0 billion, an increase of 7%, or 15% after adjusting for currency, and earnings per diluted share of $2.64, up 10%, or 18% adjusting for currency versus the year-ago period. Including the special items, net income was $2.9 billion and earnings per diluted share was $2.56. Acquisitions had a $0.08 dilutive impact on earnings per diluted share in the year-to-date period.

Net revenue for the nine months ended September 30, 2015 was $7.2 billion, an increase of 2%, or 8% after adjusting for currency, versus the same period in 2014. Gross dollar volume growth of 13%, cross-border volume growth of 17% and transaction processing growth of 12% contributed to the net revenue growth in the year-to-date period. These factors were partially offset by an increase in rebates and incentives. Acquisitions contributed 2 percentage points to total net revenue growth.

Excluding the special items, total operating expenses increased 3%, or 7% after adjusting for currency, to $3.0 billion, for the nine months ended September 30, 2015, compared to the same period in 2014. The increase was due to the impact of acquisitions. Including the special items, total operating expenses increased 8%, or 12% after adjusting for currency.

Excluding the special items, operating income was $4.1 billion, an increase of 1% for the nine months of 2015 versus the same period in 2014 or an increase of 8% after adjusting for currency. The company delivered an operating margin of 57.5%.

MasterCard’s effective tax rate was 26.0% for the nine months ended September 30, 2015 versus a rate of 30.9% in the same period in 2014, excluding the special items. The decrease was primarily due to a larger repatriation benefit, the recognition of a discrete U.S. foreign tax credit benefit and a more favorable mix of taxable earnings.

Third-Quarter Financial Results Conference Call Details

At 9:00 a.m. ET today, the company will host a conference call to discuss its third-quarter financial results.

The dial-in information for this call is 877-201-0168 (within the U.S.) and 647-788-4901 (outside the U.S.), and the passcode is 51218078. A replay of the call will be available for 30 days and can be accessed by dialing 855-859-2056 (within the U.S.) and 404-537-3406 (outside the U.S.), and using passcode 51218078.

This call can also be accessed through the Investor Relations section of the company’s website at www.mastercard.com/investor.

Non-GAAP Financial Information

The company has presented certain financial data that are considered non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying tables.

The presentation of growth rates adjusted for currency represent a non-GAAP measure and are calculated by remeasuring the prior period’s results using the current period’s exchange rates.

About MasterCard Incorporated

MasterCard (NYSE:MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.

Forward-Looking Statements

Statements in this press release which are not historical facts, including statements about MasterCard’s plans, strategies, beliefs and expectations, are forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date they are made. Accordingly, except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events. Such forward-looking statements include, without limitation, statements related to our business performance and the execution of our strategy.

Actual results may differ materially from such forward-looking statements for a number of reasons, including those set forth in the company’s filings with the Securities and Exchange Commission (SEC), including the company’s Annual Report on Form 10-K for the year ended December 31, 2014, the company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that have been filed with the SEC during 2015, as well as reasons including difficulties, delays or the inability of the company to achieve its strategic initiatives set forth above. Factors other than those listed above could also cause the company’s results to differ materially from expected results.

MASTERCARD INCORPORATED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
				Three Months Ended September 30,								Nine Months Ended September 30,
				2015				2014				2015				2014
				(in millions, except per share data)
Net Revenue				$	2,530			$	2,490			$	7,150			$	7,030
Operating Expenses
General and administrative				883				784				2,343				2,180
Advertising and marketing				184				203				502				525
Depreciation and amortization				94				83				273				237
Provision for litigation settlement				—				—				61				—
Total operating expenses				1,161				1,070				3,179				2,942
Operating income				1,369				1,420				3,971				4,088
Other Income (Expense)
Investment income				5				8				20				21
Interest expense				(15		)		(11		)		(49		)		(32		)
Other income (expense), net				(7		)		1				(9		)		(5		)
Total other income (expense)				(17		)		(2		)		(38		)		(16		)
Income before income taxes				1,352				1,418				3,933				4,072
Income tax expense				375				403				1,015				1,256
Net Income				$	977			$	1,015			$	2,918			$	2,816
Basic Earnings per Share				$	0.86			$	0.88			$	2.57			$	2.41
Basic Weighted-Average Shares Outstanding				1,130				1,157				1,136				1,169
Diluted Earnings per Share				$	0.86			$	0.87			$	2.56			$	2.40
Diluted Weighted-Average Shares Outstanding				1,133				1,160				1,139				1,172

MASTERCARD INCORPORATED CONSOLIDATED BALANCE SHEET (UNAUDITED)
			September 30, 2015				December 31, 2014
			(in millions, except share data)
ASSETS
Cash and cash equivalents			$	3,877			$	5,137
Restricted cash for litigation settlement			541				540
Investments			1,232				1,238
Accounts receivable			1,081				1,109
Settlement due from customers			912				1,052
Restricted security deposits held for customers			871				950
Prepaid expenses and other current assets			843				671
Deferred income taxes			268				300
Total Current Assets			9,625				10,997
Property, plant and equipment, net of accumulated depreciation of $484 and $437, respectively			641				615
Deferred income taxes			22				96
Goodwill			1,907				1,522
Other intangible assets, net of accumulated amortization of $786 and $663, respectively			820				714
Other assets			1,619				1,385
Total Assets			$	14,634			$	15,329
LIABILITIES AND EQUITY
Accounts payable			$	381			$	419
Settlement due to customers			883				1,142
Restricted security deposits held for customers			871				950
Accrued litigation			711				771
Accrued expenses			2,512				2,439
Other current liabilities			585				501
Total Current Liabilities			5,943				6,222
Long-term debt			1,495				1,494
Deferred income taxes			95				115
Other liabilities			803				674
Total Liabilities			8,336				8,505
Commitments and Contingencies
Stockholders’ Equity
Class A common stock, $0.0001 par value; authorized 3,000,000,000 shares, 1,368,854,797 and
1,352,378,383 shares issued and 1,101,756,990 and 1,115,369,640 outstanding, respectively			—				—
Class B common stock, $0.0001 par value; authorized 1,200,000,000 shares, 22,556,445 and
37,192,165 issued and outstanding, respectively			—				—
Additional paid-in-capital			3,973				3,876
Class A treasury stock, at cost, 267,097,807 and 237,008,743 shares, respectively			(12,713		)		(9,995		)
Retained earnings			15,543				13,169
Accumulated other comprehensive income (loss)			(536		)		(260		)
Total Stockholders’ Equity			6,267				6,790
Non-controlling interests			31				34
Total Equity			6,298				6,824
Total Liabilities and Equity			$	14,634			$	15,329

MASTERCARD INCORPORATED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
			Nine Months Ended September 30,
			2015				2014
			(in millions)
Operating Activities
Net income			$	2,918			$	2,816
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of customer and merchant incentives			560				513
Depreciation and amortization			273				237
Share-based payments			1				(43		)
Deferred income taxes			18				(80		)
Other			33				24
Changes in operating assets and liabilities:
Accounts receivable			(27		)		(96		)
Income taxes receivable			(83		)		(12		)
Settlement due from customers			78				86
Prepaid expenses			(704		)		(610		)
Accrued litigation and legal settlements			(60		)		(97		)
Accounts payable			(31		)		(39		)
Settlement due to customers			(192		)		(124		)
Accrued expenses			1				60
Net change in other assets and liabilities			219				47
Net cash provided by operating activities			3,004				2,682
Investing Activities
Purchases of investment securities available-for-sale			(862		)		(1,977		)
Purchases of other short-term investments held-to-maturity			(868		)		—
Acquisition of businesses, net of cash acquired			(584		)		(336		)
Purchases of property, plant and equipment			(125		)		(97		)
Capitalized software			(124		)		(75		)
Proceeds from sales of investment securities available-for-sale			666				1,444
Proceeds from maturities of investment securities available-for-sale			476				1,322
(Increase) decrease in restricted cash for litigation settlement			(1		)		184
Proceeds from maturities of investment securities held-to-maturity			576				—
Other investing activities			(7		)		(17		)
Net cash (used in) provided by investing activities			(853		)		448
Financing Activities
Purchases of treasury stock			(2,725		)		(3,231		)
Proceeds from debt			—				1,487
Dividends paid			(548		)		(388		)
Tax benefit for share-based payments			40				53
Cash proceeds from exercise of stock options			25				23
Other financing activities			(8		)		(39		)
Net cash used in financing activities			(3,216		)		(2,095		)
Effect of exchange rate changes on cash and cash equivalents			(195		)		(172		)
Net (decrease) increase in cash and cash equivalents			(1,260		)		863
Cash and cash equivalents – beginning of period			5,137				3,599
Cash and cash equivalents – end of period			$	3,877			$	4,462
Non-Cash Investing and Financing Activities
Fair value of assets acquired, net of cash acquired			$	625			$	574
Fair value of liabilities assumed related to acquisitions			$	41			$	134

MASTERCARD INCORPORATED OPERATING PERFORMANCE
		For the 3 Months ended September 30, 2015
All MasterCard Credit,		GDV		Growth		Growth		Purchase Volume		Growth		Purchase Trans.		Cash Volume		Growth		Cash Trans.		Accounts		Cards
Charge and Debit Programs		(Bil.)		(USD)		(Local)		(Bil.)		(Local)		(Mil.)		(Bil.)		(Local)		(Mil.)		(Mil.)		(Mil.)
APMEA		$351		2.7%		14.0%		$237		14.5%		3,128		$114		13.2%		1,142		502		535
Canada		33		-2.1%		17.8%		31		19.2%		468		2		-2.5%		6		42		49
Europe		332		-5.9%		16.9%		228		14.8%		4,635		104		21.9%		791		382		400
Latin America		77		-15.3%		16.5%		45		17.7%		1,437		32		14.9%		230		147		168
Worldwide less United States		793		-3.2%		15.6%		541		15.1%		9,668		253		16.7%		2,168		1,073		1,152
United States		365		7.6%		7.6%		311		7.8%		5,667		54		6.8%		340		332		367
Worldwide		1,159		0.0%		13.0%		852		12.3%		15,335		307		14.8%		2,508		1,404		1,519
MasterCard Credit and Charge Programs
Worldwide less United States		447		-6.0%		10.7%		407		11.7%		5,783		40		1.3%		189		520		586
United States		175		8.7%		8.7%		168		8.1%		1,906		8		22.9%		9		156		188
Worldwide		622		-2.3%		10.1%		575		10.6%		7,689		48		4.3%		198		676		774
MasterCard Debit Programs
Worldwide less United States		346		0.7%		22.7%		134		27.1%		3,885		213		20.1%		1,980		552		566
United States		190		6.7%		6.7%		144		7.4%		3,761		46		4.6%		331		176		179
Worldwide		536		2.7%		16.5%		277		16.1%		7,646		259		17.0%		2,311		728		745
		For the 9 Months ended September 30, 2015
All MasterCard Credit,		GDV		Growth		Growth		Purchase Volume		Growth		Purchase Trans.		Cash Volume		Growth		Cash Trans.		Accounts		Cards
Charge and Debit Programs		(Bil.)		(USD)		(Local)		(Bil.)		(Local)		(Mil.)		(Bil.)		(Local)		(Mil.)		(Mil.)		(Mil.)
APMEA		$1,027		6.2%		14.8%		$689		15.0%		8,718		$338		14.4%		3,242		502		535
Canada		97		1.2%		16.8%		92		18.6%		1,314		5		-6.9%		17		42		49
Europe		938		-7.1%		16.2%		648		14.3%		12,964		289		20.5%		2,212		382		400
Latin America		237		-9.4%		15.4%		140		18.2%		4,152		97		11.6%		666		147		168
Worldwide less United States		2,298		-1.5%		15.5%		1,568		15.2%		27,148		729		16.2%		6,136		1,073		1,152
United States		1,068		7.1%		7.1%		908		7.3%		16,362		160		6.1%		1,009		332		367
Worldwide		3,366		1.1%		12.7%		2,476		12.2%		43,510		889		14.2%		7,145		1,404		1,519
MasterCard Credit and Charge Programs
Worldwide less United States		1,314		-3.7%		10.9%		1,195		12.2%		16,481		119		-0.3%		557		520		586
United States		500		6.9%		6.9%		479		6.9%		5,351		21		8.2%		25		156		188
Worldwide		1,813		-1.0%		9.8%		1,673		10.6%		21,832		140		0.9%		582		676		774
MasterCard Debit Programs
Worldwide less United States		984		1.7%		22.3%		374		26.2%		10,667		611		20.0%		5,579		552		566
United States		568		7.2%		7.2%		429		7.7%		11,011		139		5.8%		985		176		179
Worldwide		1,553		3.6%		16.3%		803		15.6%		21,679		749		17.1%		6,563		728		745
		For the 3 Months ended September 30, 2014
All MasterCard Credit,		GDV		Growth		Growth		Purchase Volume		Growth		Purchase Trans.		Cash Volume		Growth		Cash Trans.		Accounts		Cards
Charge and Debit Programs		(Bil.)		(USD)		(Local)		(Bil.)		(Local)		(Mil.)		(Bil.)		(Local)		(Mil.)		(Mil.)		(Mil.)
APMEA		$342		16.8%		17.0%		$228		15.7%		2,591		$113		19.9%		1,006		436		467
Canada		34		0.4%		5.1%		31		6.5%		393		2		-11.9%		6		37		43
Europe		353		9.8%		12.1%		238		9.2%		3,765		116		18.6%		682		344		360
Latin America		91		9.3%		14.4%		57		19.5%		1,284		35		7.0%		208		132		151
Worldwide less United States		820		12.1%		14.1%		554		12.6%		8,032		266		17.1%		1,902		948		1,022
United States		339		7.6%		7.6%		289		8.3%		5,170		51		4.1%		335		307		341
Worldwide		1,159		10.8%		12.1%		843		11.1%		13,202		316		14.8%		2,237		1,256		1,362
MasterCard Credit and Charge Programs
Worldwide less United States		476		8.4%		9.7%		426		11.1%		5,165		49		-1.0%		202		499		561
United States		161		6.7%		6.7%		155		7.5%		1,725		6		-10.1%		8		147		177
Worldwide		637		7.9%		8.9%		582		10.1%		6,890		55		-2.1%		210		646		738
MasterCard Debit Programs
Worldwide less United States		344		17.8%		20.7%		128		18.1%		2,867		216		22.2%		1,700		449		461
United States		178		8.5%		8.5%		134		9.2%		3,444		44		6.5%		328		160		164
Worldwide		522		14.4%		16.2%		261		13.4%		6,312		261		19.2%		2,027		610		625
		For the 9 Months ended September 30, 2014
All MasterCard Credit,		GDV		Growth		Growth		Purchase Volume		Growth		Purchase Trans.		Cash Volume		Growth		Cash Trans.		Accounts		Cards
Charge and Debit Programs		(Bil.)		(USD)		(Local)		(Bil.)		(Local)		(Mil.)		(Bil.)		(Local)		(Mil.)		(Mil.)		(Mil.)
APMEA		$966		14.7%		18.0%		$645		17.2%		7,226		$321		19.4%		2,826		436		467
Canada		96		-1.0%		5.7%		89		7.3%		1,109		7		-12.0%		17		37		43
Europe		1,009		12.4%		13.2%		683		10.1%		10,585		326		20.5%		1,948		344		360
Latin America		262		5.4%		14.2%		160		20.2%		3,703		102		5.8%		612		132		151
Worldwide less United States		2,333		11.9%		14.9%		1,576		13.7%		22,624		756		17.5%		5,403		948		1,022
United States		997		8.5%		8.5%		846		9.1%		15,045		151		4.9%		974		307		341
Worldwide		3,330		10.8%		12.9%		2,423		12.1%		37,669		907		15.2%		6,377		1,256		1,362
MasterCard Credit and Charge Programs
Worldwide less United States		1,364		8.4%		11.0%		1,217		12.2%		14,757		147		1.3%		611		499		561
United States		467		8.2%		8.2%		448		8.6%		4,948		19		-1.3%		21		147		177
Worldwide		1,831		8.3%		10.2%		1,665		11.2%		19,705		166		1.0%		631		646		738
MasterCard Debit Programs
Worldwide less United States		968		17.3%		21.0%		359		19.0%		7,867		610		22.2%		4,792		449		461
United States		530		8.7%		8.7%		399		9.7%		10,097		131		5.8%		953		160		164
Worldwide		1,498		14.1%		16.3%		758		13.9%		17,964		741		18.9%		5,745		610		625

APMEA = Asia Pacific / Middle East / Africa

Note that the figures in the preceding tables may not sum due to rounding; growth represents change from the comparable year-ago period.

Footnote

The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions, accounts and cards on a regional and global basis for MasterCard®-branded and MasterCard Electronic™-branded cards. Growth rates over prior periods are provided for volume-based data.

Debit transactions on Maestro® and Cirrus®-branded cards and transactions involving brands other than MasterCard are not included in the preceding tables.

For purposes of the table: GDV represents purchase volume plus cash volume and includes the impact of balance transfers and convenience checks; “purchase volume” means the aggregate dollar amount of purchases made with MasterCard-branded cards for the relevant period; and “cash volume” means the aggregate dollar amount of cash disbursements obtained with MasterCard-branded cards for the relevant period. The number of cards includes virtual cards, which are MasterCard-branded payment accounts that do not generally have physical cards associated with them.

The MasterCard payment product is comprised of credit, charge and debit programs, and data relating to each type of program is included in the tables. Debit programs include MasterCard-branded debit programs where the primary means of cardholder validation at the point of sale is for cardholders either to sign a sales receipt or enter a PIN. The tables include information with respect to transactions involving MasterCard-branded cards that are not processed by MasterCard and transactions for which MasterCard does not earn significant revenues.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which MasterCard volumes are reported. These exchange rates are calculated on a quarterly basis using the average exchange rate for each quarter. MasterCard reports period-over-period rates of change in purchase volume and cash volume on the basis of local currency information, in order to eliminate the impact of changes in the value of foreign currencies against the U.S. dollar in calculating such rates of change.

The data set forth in the GDV, purchase volume, purchase transactions, cash volume and cash transactions columns is provided by MasterCard customers and is subject to verification by MasterCard and partial cross-checking against information provided by MasterCard’s transaction processing systems. The data set forth in the accounts and cards columns is provided by MasterCard customers and is subject to certain limited verification by MasterCard. A portion of the data set forth in the accounts and cards columns reflects the impact of routine portfolio changes among customers and other practices that may lead to over counting of the underlying data in certain circumstances. All data is subject to revision and amendment by MasterCard’s customers subsequent to the date of its release.

In 2015 Q3, several customers purged inactive MasterCard cards and accounts. Data for the comparable periods in 2014 has been revised to be consistent with this approach.

Performance information for prior periods can be found in the “Investor Relations” section of the MasterCard website at www.mastercard.com/investor.

Non-GAAP Reconciliations ($ in millions, except per share data)
			Three Months Ended September 30, 2015												Three Months Ended September 30, 2014				Percent Increase / (Decrease)
			Actual				Special Item1				Non- GAAP				Actual				Actual		Special Item1		Non- GAAP
Total operating expenses			$	1,161			$	(79	)		$	1,082			$	1,070			9%		7%		1%
Operating income			$	1,369			$	79			$	1,448			$	1,420			(4)%		(6)%		2%
Operating Margin			54.1		%						57.2		%		57.0		%
Income tax expense			$	375			$	29			$	404			$	403			(7)%		(7)%		—%
Effective Tax Rate			27.7		%						28.2		%		28.5		%
Net Income			$	977			$	50			$	1,027			$	1,015			(4)%		(5)%		1%
Diluted Earnings per Share			$	0.86			$	0.04			$	0.91			$	0.87			(1)%		(5)%		5%
			Nine Months Ended September 30, 2015												Nine Months Ended September 30, 2014				Percent Increase / (Decrease)
			Actual				Special Items2				Non- GAAP				Actual				Actual		Special Items2		Non- GAAP
Total operating expenses			$	3,179			$	(140	)		$	3,039			$	2,942			8%		5%		3%
Operating income			$	3,971			$	140			$	4,111			$	4,088			(3)%		(3)%		1%
Operating Margin			55.5		%						57.5		%		58.1		%
Income tax expense			$	1,015			$	45			$	1,060			$	1,256			(19)%		(4)%		(16)%
Effective Tax Rate			25.8		%						26.0		%		30.9		%
Net Income			$	2,918			$	95			$	3,013			$	2,816			4%		(3)%		7%
Diluted Earnings per Share			$	2.56			$	0.08			$	2.64			$	2.40			7%		(3)%		10%

Note: Figures may not sum due to rounding

1 Represents effect of termination of the U.S. employee pension plan

2 Represents effect of termination of the U.S. employee pension plan and U.K. Merchant Litigation Settlement

Investor Relations:

Barbara Gasper or Matt Lanford, 914-249-4565

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or

Media Relations:

Seth Eisen, 914-249-3153

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Original author: Seth Eisen