MasterCard 2015 Annual Report Download - page 38

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32
• The net impact of foreign currency translation, from the devaluation of the euro and the Brazilian real, decreased 2015
net income growth by $230 million or 7 percentage points.
Other financial highlights for 2015 were as follows:
• We generated net cash flows from operations of $4.0 billion in 2015, compared to $3.4 billion in 2014.
• We acquired two businesses for $609 million, which focus on expanding our footprint and enhancing critical capabilities,
including in the area of data analytics with the acquisition of Applied Predictive Technologies.
• We completed a debt offering of €1.65 billion ($1.7 billion) and established a commercial paper program with
authorization to issue up to $3.75 billion in outstanding notes.
• We repurchased 38 million shares of our Class A common stock for $3.5 billion in 2015.
The following tables provide a summary of our operating results:
For the Years Ended December 31,
2015 2014 Percent Increase (Decrease)
Actual
Special
Items 1Non-GAAP Actual1Actual
Special
Items 1Non-GAAP
(in millions, except per share data and percentages)
Net revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,667 $ — $ 9,667 $ 9,441 2% —% 2%
Operating expenses. . . . . . . . . . . . . . . . . . . . . . . $ 4,589 $ (140) $ 4,449 $ 4,335 6% 3% 3%
Operating income . . . . . . . . . . . . . . . . . . . . . . . . $ 5,078 $ 140 $ 5,218 $ 5,106 (1)% (3)% 2%
Operating margin . . . . . . . . . . . . . . . . . . . . . . . . 52.5% 54.0% 54.1%
Income tax expense . . . . . . . . . . . . . . . . . . . . . . $ 1,150 $ 45 $ 1,195 $ 1,462 (21)% (3)% (18)%
Effective income tax rate . . . . . . . . . . . . . . . . . . 23.2% 23.4% 28.8%
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,808 $ 95 $ 3,903 $ 3,617 5% (3)% 8%
Diluted earnings per share . . . . . . . . . . . . . . . . . $ 3.35 $ 0.08 $ 3.43 $ 3.10 8% (3)% 11%
Diluted weighted-average shares outstanding. 1,137 1,137 1,169 (3)% (3)%
For the Years Ended December 31,
2014 2013 Percent Increase (Decrease)
Actual1Actual
Special
Items 1Non-GAAP Actual
Special
Items 1Non-GAAP
(in millions, except per share data and percentages)
Net revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,441 $ 8,312 $ — $ 8,312 14% —% 14%
Operating expenses. . . . . . . . . . . . . . . . . . . . . . . $ 4,335 $ 3,809 $ (95) $ 3,714 14% (3)% 17%
Operating income . . . . . . . . . . . . . . . . . . . . . . . . $ 5,106 $ 4,503 $ 95 $ 4,598 13% 2% 11%
Operating margin . . . . . . . . . . . . . . . . . . . . . . . . 54.1% 54.2% 55.3%
Income tax expense . . . . . . . . . . . . . . . . . . . . . . $ 1,462 $ 1,384 $ 34 $ 1,418 6% 3% 3%
Effective income tax rate . . . . . . . . . . . . . . . . . . 28.8% 30.8% 30.9%
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,617 $ 3,116 $ 61 $ 3,177 16% 2% 14%
Diluted earnings per share . . . . . . . . . . . . . . . . . $ 3.10 $ 2.56 $ 0.05 $ 2.61 21% 2% 19%
Diluted weighted-average shares outstanding. 1,169 1,215 1,215 (4)% (4)%
1 See Non-GAAP Financial Information for the respective impacts relating to the Special Items. There were no Special Items recorded in 2014.
* Tables may not sum due to rounding.