Reconciliation to Net Income, Earnings Per Share and Total Operating Expenses

For the year ended 12/31/06   For the year ended 12/31/05 Year-Over-Year
Growth
($ million) Actual Special
Items		 As
Adjusted		   Actual Special
Items		 As
Adjusted		 As
Adjusted
Revenues, Net $ 3,326 — $ 3,326    $ 2,938 — $ 2,938 13.2%
Operating Expenses
General and Administrative 1,505 — 1,505    1,352 193 1,333 12.9%
Advertising and Marketing 1,052 — 1,052    1,008 — 1,008 4.4%
Litigation Settlements 25 251 —    75 751 — NM
Charitable Contributions
to The MasterCard Foundation		 415 3954 202    — — — NM
Depreciation and Amortization 100 — 100    110 — 110 (9.1%)
Total Operating Expenses 3,097 420 2,677    2,545 94 2,451 9.2%
Operating Income 229 420 649    393 94 487 33.3%
Operating Margin 6.9% — 19.5%    13.4% — 16.6% 2.9 ppt
Other Income (expense)
Investment Income, Net 125 (7)5 118    61 — 61 93.4%
Interest Expense (61) — (61)    (70) — (70) (12.9%)
Other Income, Net 1 — 1    23 (17)6 6 (83.3%)
Total Other Income (expense) 65 (7) 58    14 (17) (3) NM
Income before Income Taxes 294 413 707    407 77 484 46.1%
Income Tax Expense 244 6 250    140 27 167 49.9%
Net Income $ 50 $ 407 $ 457    $ 267 $ 50 $ 317 44.2%
Basic Net Income per Share $ 0.37 $ 3.00 $ 3.37    $ 1.98 $ 0.37 $ 2.35 43.4%
Diluted Net Income per Share $ 0.37 $ 3.00 $ 3.37    $ 1.98 $ 0.37 $ 2.35 43.4%

(1) Litigation settlements
(2) Contribution of cash to The MasterCard Foundation
(3) Adjustment to reflect accounting methodology change for cash-based executive incentive plans
(4) Contribution of common stock to The MasterCard Foundation
(5) Interest income on IPO proceeds that were used for redemption
(6) Gains from the settlement of a contractual dispute
NM = not meaningful