SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-16111



~~Georgia~~		~~58-2567903~~
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)



Georgia						58-2567903
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

Registrant’s telephone number, including area code: (~~770~~) (770) 829-8000

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 (§232.405 of this chapter) 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.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller 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 Exchange Act).

The number of shares of the issuer’s common stock, no par value, outstanding as of October ~~27, 2019~~26, 2020 was ~~300,548,018~~299,337,266.

GLOBAL PAYMENTS INC.

For the quarterly period ended September 30, ~~2019~~2020

PART 1 - FINANCIAL INFORMATION

ITEM 1—FINANCIAL STATEMENTS

GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

See Notes to Unaudited Consolidated Financial Statements.

GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

See Notes to Unaudited Consolidated Financial Statements.

GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended
September 30, 2019 September 30, 2018

Net income $ 105,731
$ 186,029
Other comprehensive income (loss):
Foreign currency translation adjustments (67,279 ) (15,395 )
Income tax benefit related to foreign currency translation adjustments 144
140
Net unrealized (losses) gains on hedging activities (40,265 ) 1,845
Reclassification of net unrealized losses (gains) on hedging activities to interest expense 1,193
(1,663 )
Income tax benefit (expense) related to hedging activities 9,289
(110 )
Other, net of tax 37
(58 )
Other comprehensive loss (96,881 ) (15,241 )

Comprehensive income 8,850
170,788
Comprehensive income attributable to noncontrolling interests (1,967 ) (21,333 )
Comprehensive income attributable to Global Payments $ 6,883
$ 149,455


	Three Months Ended
	September 30, 2020		September 30, 2019

Net income	$	230,230	$	105,731
Other comprehensive income (loss):
Foreign currency translation adjustments	110,809		(67,279)
Income tax benefit related to foreign currency translation adjustments	0		144
Net unrealized gains (losses) on hedging activities	194		(40,265)
Reclassification of net unrealized losses on hedging activities to interest expense	11,133		1,193
Income tax (expense) benefit related to hedging activities	(2,612)		9,289
Other, net of tax	(3,531)		37
Other comprehensive income (loss)	115,993		(96,881)

Comprehensive income	346,223		8,850
Comprehensive income attributable to noncontrolling interests	(18,010)		(1,967)
Comprehensive income attributable to Global Payments	$	328,213	$	6,883


	Nine Months Ended
	September 30, 2020		September 30, 2019

Net income	$	420,282	$	354,974
Other comprehensive income (loss):
Foreign currency translation adjustments	(10,844)		(54,377)
Income tax benefit related to foreign currency translation adjustments	1,160		1,695
Net unrealized losses on hedging activities	(53,332)		(96,997)
Reclassification of net unrealized losses (gains) on hedging activities to interest expense	25,786		(1,530)
Income tax benefit related to hedging activities	6,677		23,800
Other, net of tax	(3,288)		165
Other comprehensive loss	(33,841)		(127,244)

Comprehensive income	386,441		227,730
Comprehensive income attributable to noncontrolling interests	(25,898)		(17,780)
Comprehensive income attributable to Global Payments	$	360,543	$	209,950

GLOBAL PAYMENTS INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

See Notes to Unaudited Consolidated Financial Statements.

GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


	Number of Shares	Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Global Payments Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance at June 30, 2020	299,244	$	25,570,582	$	2,314,423	$	(459,146)	$	27,425,859	$	207,130	$	27,632,989
Net income				220,971				220,971		9,259		230,230
Other comprehensive income						107,242		107,242		8,751		115,993
Stock issued under share-based compensation plans	50	8,423						8,423				8,423
Common stock repurchased - share-based compensation plans	(7)	(682)						(682)				(682)
Share-based compensation expense		42,276						42,276				42,276
Distributions to noncontrolling interest								—		(6,955)		(6,955)
Cash dividends declared ($0.195 per share)				(58,432)				(58,432)				(58,432)
Balance at September 30, 2020	299,287	$	25,620,599	$	2,476,962	$	(351,904)	$	27,745,657	$	218,185	$	27,963,842

Total Global Payments Shareholders’ Equity

See Notes to Unaudited Consolidated Financial Statements.

GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


	Number of Shares	Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Global Payments Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2019	300,226	$	25,833,307	$	2,333,011	$	(310,571)	$	27,855,747	$	199,242	$	28,054,989
Cumulative effect of adoption of new accounting standard				(5,379)				(5,379)				(5,379)
Net income				401,876				401,876		18,406		420,282
Other comprehensive (loss) income						(41,333)		(41,333)		7,492		(33,841)
Stock issued under share-based compensation plans	1,495	51,055						51,055				51,055
Common stock repurchased - share-based compensation plans	(339)	(42,403)						(42,403)				(42,403)
Share-based compensation expense		105,081						105,081				105,081
Distributions to noncontrolling interest								—		(6,955)		(6,955)
Repurchase of common stock	(2,095)	(326,441)		(77,521)				(403,962)				(403,962)
Dividends paid ($0.585 per share)				(175,025)				(175,025)				(175,025)
Balance at September 30, 2020	299,287	$	25,620,599	$	2,476,962	$	(351,904)	$	27,745,657	$	218,185	$	27,963,842


	Number of Shares	Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Global Payments Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2018	157,962	$	2,235,167	$	2,066,415	$	(310,175)	$	3,991,407	$	194,936	$	4,186,343
Net income				327,842				327,842		27,132		354,974
Other comprehensive loss						(117,892)		(117,892)		(9,352)		(127,244)
Stock issued under share-based compensation plans	750	22,008						22,008				22,008
Common stock repurchased - share-based compensation plans	(268)	(41,190)						(41,190)				(41,190)
Share-based compensation expense		55,791						55,791				55,791
Issuance of common stock in connection with a business combination	143,909	23,771,389						23,771,389				23,771,389
Distributions to noncontrolling interest								—		(31,632)		(31,632)
Repurchase of common stock	(1,808)	(138,361)		(91,633)				(229,994)				(229,994)
Dividends paid ($0.03 per share)				(4,727)				(4,727)				(4,727)
Balance at September 30, 2019	300,545	$	25,904,804	$	2,297,897	$	(428,067)	$	27,774,634	$	181,084	$	27,955,718

Total Global Payments Shareholders’ Equity

See Notes to Unaudited Consolidated Financial Statements.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business, consolidation and presentation

We are a leading pure play payments technology company delivering innovative software and services to our customers globally. Our technologies, services and employee expertise enable us to provide a broad range of solutions that allow our customers to operate their businesses more efficiently across a variety of channels around the world. We operate in 3 reportable segments: Merchant Solutions, Issuer Solutions and Business and Consumer Solutions, which are described in "Note 12—Segment Information." Global Payments Inc. and its consolidated subsidiaries are referred to herein collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise.

On May 27, 2019, we entered into an Agreement and Plan of Merger (the "Merger Agreement") with Total System Services, Inc. ("TSYS") providing for the merger of TSYS with and into Global Payments, with Global Payments as the surviving entity (the "Merger"). We consummated the Merger on September 18, 2019. Prior to the Merger, TSYS was a leading global payments provider, offering seamless, secure and innovative solutions to issuers, merchants and consumers. Through our combination with TSYS, we are now a leading pure play payments technology company delivering innovative software and services to our customers globally. See "Note 2—Acquisitions" for more information about the Merger.

These unaudited consolidated financial statements include our accounts and those of our majority-owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated balance sheet as of December 31, ~~2018~~2019 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, ~~2018~~2019 but does not include all disclosures required by GAAP for annual financial statements.

In the opinion of our management, all known adjustments necessary for a fair presentation of the results of the interim periods have been made. These adjustments consist of normal recurring accruals and estimates that affect the carrying amount of assets and liabilities. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, ~~2018.~~

In March 2020, the World Health Organization declared the outbreak of the COVID-19 virus a global pandemic. The pandemic continues to cause major disruptions to businesses and markets worldwide as the virus spreads or has a resurgence in certain jurisdictions. A number of countries as well as many states and cities within the United States have implemented measures in an effort to contain the virus, including physical distancing, travel restrictions, border closures, limitations on public gatherings, work from home and closure of or restrictions on nonessential businesses. The effects of the outbreak are still evolving, and the ultimate severity and duration of the pandemic and the implications on global economic conditions remains uncertain.

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. In particular, the future magnitude, duration and effects of the COVID-19 pandemic are difficult to predict at this time, and the ultimate effect could result in additional charges related to the recoverability of assets, including financial assets, long-lived assets and goodwill and other losses. These unaudited consolidated financial statements reflect the financial statement effects of COVID-19 based upon management’s estimates and assumptions utilizing the most currently available information.

Recently adopted accounting pronouncements

~~Recently Adopted~~

Accounting ~~Pronouncements~~Standards Update ("ASU") 2018-15— In ~~February 2016,~~August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, "Leases." ASU 2016-02 requires recognition of assets and liabilities for the rights and obligations created by leases and new disclosures about leases. We adopted ASU 2016-02, as well as other related clarifications and interpretive guidance issued by the FASB, on January 1, 2019 using the optional modified retrospective transition method. Under this transition method, we did not recast the prior period financial statements presented. We elected the transition package of three practical expedients, which among other things, allowed for the carryforward of historical lease classifications. We made an accounting policy election to not recognize assets or liabilities for leases with a term of less than twelve months and to account for all components in a lease arrangement as a single combined lease component for all of our then existing asset classes. In connection with the Merger, we acquired right-of-use assets that represent an additional asset class for computer equipment, for which we account for lease and nonlease components separately.

The adoption of ASU 2016-02 resulted in the measurement and recognition of lease liabilities in the amount of $274.0 million and right-of-use assets in the amount of $236.0 million as of January 1, 2019. Lease liabilities were measured as the present value of remaining lease payments, and the corresponding right-of-use assets were measured at an amount equal to the lease liabilities adjusted by the amounts of certain assets and liabilities, such as prepaid rent and deferred lease obligations, that we previously recognized on the balance sheet prior to the initial application of ASU 2016-02. To calculate the present value of remaining lease payments, we elected to use an incremental borrowing rate based on the remaining lease term at transition.

~~Recently Issued Pronouncements Not Yet Adopted~~— ~~In August 2018, the FASB~~ issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (A Consensus of the FASB Emerging Issues Task Force)." ASU 2018-15 provides additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract. The new guidance amends the definition of a hosting arrangement and requires a

customer in a hosting arrangement that is a service contract to capitalize certain implementation costs ~~as if~~following the ~~arrangement was an~~ internal-use software project. The amendments in this update also provide additional presentation and disclosure requirements, including requirements to disclose the nature of an entity’s hosting arrangements that are service contracts, as well as quantitative information about capitalized implementation costs and related amortization expense. The guidance will become effective for uscapitalization criteria within Accounting Standards Codification ("ASC") Subtopic 350-40.

We adopted ASU 2018-15 on January 1, ~~2020. We expect to apply~~2020, applying the guidance prospectively to all implementation costs incurred on or after the date of adoption.

We are finalizing our comparison of the guidance in ASU 2018-15 to our current accounting and financial reporting practices for costs of implementation activities performed in cloud computing arrangements. We are also evaluating the need for changes to our internal controls. We have not yet completed our assessment or quantified the effect, if any, of ASU 2018-15 on our consolidated balance sheet or our statements of income and cash flows; however, our preliminary expectation is that the The adoption of this standard ~~will~~did not have a material effect on our consolidated financial statements. We have historically capitalized implementation costs associated with cloud computing arrangements that are service contracts following the guidance in Subtopic 350-40 and ~~expect to~~will continue to do so pursuant to the clarifications provided in the new guidance. We ~~expect to~~ amortize ~~deferred~~capitalized implementation costs to expense on a straight-line basis over the term of the applicable hosting arrangement.

~~In June 2016, the FASB issued~~ASU 2016-13— We adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." on January 1, 2020 using the modified retrospective transition method. The adoption of this standard resulted in a cumulative-effect adjustment to decrease retained earnings by $5.4 million, net of tax. The amendments in this update ~~change~~changed how ~~companies~~we measure and recognize credit impairment for ~~many~~certain financial instruments measured at amortized cost. ~~The new model for~~Under the current expected credit losses ~~("CECL") will require us to~~model required by ASU 2016-13, we recognize at asset inception and each subsequent reporting date an estimate of credit losses expected to occur over the remaining life of ~~the~~each pool of financial ~~instruments that are within the scope of the update, including~~assets with similar risk characteristics.

We have exposure to credit losses for financial assets such as accounts receivable, ~~and~~certain settlement processing assets, ~~each~~check guarantee claims receivable assets and advances to sales representatives. We utilize a combination of aging or loss-rate methods to develop an estimate of current expected credit losses, depending on the nature and risk profile of the underlying asset pool. A broad range of information is considered in the estimation process, including historical loss information adjusted for current conditions and expectations of future trends. The estimation process also includes consideration of qualitative and quantitative risk factors associated with the age of asset balances, expected timing of payment, contract terms and conditions, changes in specific customer risk profiles or mix of customers, geographic risk, industry or economic trends and relevant environmental factors.

As of September 30, 2020, the total allowance for credit losses was approximately $36.9 million. Financial assets are presented net of the allowance for credit losses in the consolidated balance sheets. The measurement of the allowance for credit losses is recognized through credit loss expense. Depending on the nature of the underlying asset, credit loss expense is included as a component of cost of service or selling, general and administrative expense in the consolidated statements of income. Write-offs are recorded in the period in which the asset is deemed to be uncollectible. Recoveries are ~~short-term~~recorded when received as a direct credit to the credit loss expense in ~~nature. Under current GAAP,~~the consolidated statements of income. Prior to the adoption of ASU 2016-13, credit losses on these financial instruments ~~are not~~were recognized ~~until their~~when an occurrence iswas deemed to be probable.

Recently issued pronouncements not yet adopted

ASU 2019-12—In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which is intended to enhance and simplify various aspects of the accounting for income taxes. The amendments in this update remove certain exceptions to the general principles in ASC Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and amends existing guidance ~~will become~~to improve consistency in application of the accounting for franchise taxes, enacted changes in tax laws or rates and transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for ~~us on January 1, 2020. In general, the new guidance will require modified retrospective application to all outstanding financial assets that are within the scope of the update,~~annual and interim periods beginning after December 15, 2020, with ~~a cumulative-effect adjustment, if~~early adoption permitted in any ~~recorded to retained earnings as of the date of adoption.~~

interim period. We are ~~continuing to evaluate~~evaluating the effect of ASU ~~2016-13~~2019-12 on our consolidated financial ~~statements, including comparing how~~statements. Based upon the analysis performed to date, we currently measure and recognize our allowance for doubtful accounts on accounts receivable and our reserve for operating losses and sales allowances to how we would make such measurements applying the new CECL model. We havedo not ~~yet completed our assessment or quantified the effect, if any, of ASU 2016-13 on our consolidated balance sheet or our statements of income and cash flows; however, we~~ believe the adoption of ASU 2019-12 will have a material effect on our consolidated financial statements.

ASU 2020-04—In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)," which provides optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ~~new standard may require expanded qualitative disclosures about our financial assets~~update apply only to contracts, hedging relationships, and ~~related allowance~~other transactions that reference London Inter-bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for ~~credit losses,~~hedging relationships existing as ~~well as implementation~~ of ~~new or modified internal controls.~~

~~As a result~~December 31, 2022 for which an entity has elected certain optional expedients and which are retained through the end of the ~~Merger, we have expanded~~hedging relationship. The amendments in this update also include a general principle that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. If elected, the optional expedients for contract modifications must be applied consistently for all eligible contracts or eligible transactions within the relevant ASC Topic or Industry Subtopic that contains the guidance that otherwise would be required to be applied. The amendments in this update were effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are evaluating the effect of ASU 2020-04 on our ~~efforts to evaluate the effects of these new standards on the combined company, and we are incorporating TSYS into our evaluation.~~consolidated financial statements.

NOTE 2—ACQUISITIONS

~~The transactions described below were~~Total System Services, Inc.

On September 18, 2019, we merged with Total System Services, Inc. ("TSYS") (the "Merger"). We accounted for this transaction as a business ~~combinations,~~combination, which generally requires that we record the assets acquired and liabilities assumed at fair value as of the acquisition date.

~~Total System Services, Inc.~~

Pursuant to the Merger Agreement, we acquired all of the outstanding common stock of TSYS at the closing on September 18, 2019. Upon consummation of the Merger, holders of TSYS common stock received 0.8101 shares of Global Payments common stock for each share of TSYS common stock they owned at the effective time of the Merger (the "Exchange Ratio"). In addition, certain TSYS equity awards held by employees who were not executive officers, pursuant to their terms, vested automatically at closing ("Single-Trigger Awards") and were converted into the right to receive a number of shares of Global Payments common stock determined based on the Exchange Ratio. Also, pursuant to the Merger Agreement, we granted equity awards for approximately 2.2 million shares of Global Payments common stock to certain TSYS equity awards holders ("Replacement Awards"). Each such Replacement Award is subject to the same terms and conditions (including vesting and exercisability or payment terms) as applied to the corresponding TSYS equity award. We apportioned the fair value of the Replacement Awards between purchase consideration and amounts to be recognized in periods following the Merger as share-based compensation expense over the requisite service period of the Replacement Awards.

The purchase consideration transferred to TSYS shareholders was valued at $23.8 billion. Total purchase consideration also included the amount of borrowings outstanding under TSYS's unsecured revolving credit facility together with accrued interest and fees that we were required to repay upon consummation of the Merger.

~~The fair value of total purchase consideration was determined as follows (in thousands, except per share data):~~

Fair value of common stock issued to TSYS shareholders⁽¹⁾

⁽¹⁾ Fair value of common stock issued to TSYS shareholders does not equal the product of shares of Global Payments common stock issued to TSYS shareholders and price per share of Global Payments common stock as presented in the table above due to the rounding of the number of shares in thousands.

~~The provisional~~ estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, ~~as of September 30, 2019,~~ including a reconciliation to the total purchase consideration, were as ~~follows (in thousands):~~follows:


	Provisional Amounts at December 31, 2019		Measurement-Period Adjustments		Final Amounts at September 30, 2020

	(in thousands)

Cash and cash equivalents	$	446,009	$	0	$	446,009
Accounts receivable	442,848		(2,660)		440,188
Identified intangible assets	10,980,000		978		10,980,978
Property and equipment	644,084		(978)		643,106
Other assets	1,474,825		(2,969)		1,471,856
Accounts payable and accrued liabilities	(614,060)		(11,899)		(625,959)
Debt	(3,295,342)		4,787		(3,290,555)
Deferred income tax liabilities	(2,687,849)		52,598		(2,635,251)
Other liabilities	(314,415)		(173)		(314,588)
Total identifiable net assets	7,076,100		39,684		7,115,784
Goodwill	17,398,853		(39,684)		17,359,169
Total purchase consideration	$	24,474,953	$	0	$	24,474,953

Cash and cash equivalents $ 446,027
Accounts receivable 443,783
Identified intangible assets 11,020,000
Property and equipment 695,560
Other assets 1,476,290
Accounts payable and accrued liabilities (594,558 )
Debt (3,295,284 )
Deferred income tax liabilities (2,843,643 )
Other liabilities (313,782 )
Total identifiable net assets 7,034,393
Goodwill 17,440,560
Total purchase consideration $ 24,474,953

During the nine months ended September 30, 2020, we made measurement-period adjustments, as shown in the table above, that decreased the amount of provisional goodwill by $39.7 million. The decrease in deferred income tax liabilities for the nine months ended September 30, 2020 primarily relates to a refined analysis of the outside bases of partnerships. The effects of the measurement-period adjustments on our consolidated statements of income for the three and nine months ended September 30, 2020 were not material.

As of September 30, 2019, we considered these amounts to be provisional because we were still in the process of gathering and reviewing information to support the valuations of the assets acquired and liabilities assumed. Goodwill2020, goodwill arising from the acquisition of $17.4 billion was included in our reportable segments as follows: $7.1 billion in the ~~TSYS~~Merchant Solutions segment, as$7.9 billion in the Issuer Solutions segment and $2.4 billion in the

Business and Consumer Solutions segment. Goodwill was attributable to expected growth opportunities, an assembled workforce and potential synergies from combining the acquired business into our existing business. ~~We expect that substantially~~Substantially all of the goodwill from this acquisition ~~will~~is not be deductible for income tax purposes. ~~Due to the timing of the Merger, we are still in the process of assigning goodwill to our reporting units.~~

~~The following table reflects the provisional estimated fair values of the identified intangible assets of TSYS and the respective aggregated weighted-average estimated amortization periods:~~

Estimated Fair Values Weighted-Average Estimated Amortization Periods

(in thousands) (years)
Customer-related intangible assets $ 6,330,000
18
Contract-based intangible assets 1,810,000
20
Acquired technologies 1,810,000
7
Trademarks and trade names 1,070,000
12
Total estimated identified intangible assets $ 11,020,000
14

From the acquisition date through September 30, 2019, TSYS contributed $147.5 million to our consolidated revenues and had an operating loss of approximately $11.1 million. Transaction costs directly related to the Merger were $53.5 million and $65.7 million for the three and nine months ended September 30, 2019, respectively.

The following unaudited pro forma information shows the results of our operations for the three and nine months ended September 30, 2019 ~~and 2018~~ as if the Merger had occurred on January 1, 2018. The unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of what would have occurred if the Merger had occurred as of that date. The unaudited pro forma information is also not intended to be a projection of future results due to the integration of TSYS. The unaudited pro forma information reflects the effects of applying our accounting policies and certain pro forma adjustments to the combined historical financial information of Global Payments and TSYS. ~~The pro forma adjustments include:~~


	Three Months Ended September 30, 2019				Nine Months Ended September 30, 2019
	Actual		Pro Forma		Actual		Pro Forma

	(in thousands)

Total revenues	$	1,105,941	$	1,993,089	$	2,924,131	$	5,866,522
Net income attributable to Global Payments	$	95,044	$	219,010	$	327,842	$	614,317

~~incremental amortization expense associated with identified intangible assets;~~

~~a reduction of revenues~~For the three and ~~operating expenses associated with fair value adjustments made to acquired assets and assumed liabilities, such as contract cost assets and contract liabilities;~~

In addition, the pro forma net income attributable to Global Payments includes recognition of transaction costs related to the Merger in earnings as of the beginning of the earliest period presented. Accordingly, pro forma net income attributable to Global Payments for the nine months ended September 30, ~~2018 includes approximately $150~~2020, the acquired operations of TSYS contributed $1,067.2 million and $3,119.2 million, respectively, to our consolidated revenues and $165.8 million and $385.1 million, respectively, to our consolidated operating income.

At September 30, 2020, accounts payable and accrued liabilities in the consolidated balance sheet included obligations totaling $26.3 million for employee termination benefits resulting from Merger-related integration activities. During the three months ended September 30, 2020, we recognized charges for employee termination benefits of $8.1 million, which included $1.9 million of ~~transaction costs.~~

Three Months Ended
September 30, 2019

Three Months Ended
September 30, 2018
Actual Pro Forma Actual Pro Forma

(in thousands)

Total revenues $ 1,105,941
$ 1,993,089
$ 857,670
$ 1,864,534
Net income attributable to Global Payments $ 95,044
$ 219,010
$ 176,370
$ 240,478

Nine Months Ended
September 30, 2019 Nine Months Ended
September 30, 2018
Actual Pro Forma Actual Pro Forma

(in thousands)

Total revenues $ 2,924,131
$ 5,866,522
$ 2,485,811
$ 5,469,240
Net income attributable to Global Payments $ 327,842
$ 614,317
$ 376,838
$ 407,899

~~SICOM Systems, Inc.~~

On October 17, 2018, we acquired SICOM Systems, Inc. ("SICOM") for total purchase consideration of $410.2 million, which we funded with cash on hand and incremental debt. SICOM is a provider of end-to-end enterprise, cloud-based software solutions and other technologies to quick service restaurants and food service management companies.

The estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed as of September 30, 2019, including a reconciliation to the total purchase consideration, were as follows (in thousands):

Cash and cash equivalents $ 7,540
Property and equipment 5,838
Identified intangible assets 188,294
Other assets 22,275
Deferred income liabilities (47,610 )
Other liabilities (31,350 )
Total identifiable net assets 144,987
Goodwill 265,214
Total purchase consideration $ 410,201

share-based compensation expense. During the nine months ended September 30, ~~2019,~~2020, we ~~made an adjustment~~recognized charges for employee termination benefits of ~~$0.4~~$49.8 million, ~~to reflect an increase in the total purchase consideration,~~ which ~~resulted in a corresponding increase in goodwill. Goodwill arising from the acquisition of $265.2 million,~~ included in the North America segment, was attributable to expected growth opportunities, an assembled workforce and potential synergies from combining the acquired business into our existing business. We expect that approximately $40$6.1 million of ~~the goodwill from this acquisition will be deductible for income tax purposes.~~

~~The following table reflects the estimated fair values of the identified intangible assets of SICOM and the respective aggregated weighted-average estimated amortization periods:~~

Estimated Fair Values Weighted-Average Estimated Amortization Periods

(in thousands) (years)
Customer-related intangible assets $ 104,900
14
Acquired technologies 65,312
6
Trademarks and trade names 11,202
3
Contract-based intangible assets 6,880
5
Total estimated identified intangible assets $ 188,294
10

~~AdvancedMD, Inc.~~

On September 4, 2018, we acquired AdvancedMD, Inc. ("AdvancedMD") for total purchase consideration of $706.9 million, which we funded with cash on hand and incremental debt. AdvancedMD is a provider of cloud-based enterprise software solutions to small-to-medium sized ambulatory care physician practices.

~~The estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed as~~share-based compensation expense. As of September 30, ~~2019, including a reconciliation to~~2020, the ~~total purchase consideration, were~~cumulative amount of recognized charges for employee termination benefits resulting from Merger-related integration activities was $106.9 million, which included $23.4 million of share-based compensation expense. These charges are recorded within selling, general and administrative expenses in our consolidated statements of income and included within Corporate expenses for segment reporting purposes. New obligations may arise and related expenses may be incurred as ~~follows (in thousands):~~Merger-related integration activities continue over the next 12 months.

Cash and cash equivalents $ 7,657
Property and equipment 5,672
Identified intangible assets 419,500
Other assets 11,785
Deferred income tax liabilities (94,044 )
Other liabilities (15,647 )
Total identifiable net assets 334,923
Goodwill 371,962
Total purchase consideration $ 706,885

~~During the nine months ended September 30, 2019, we made measurement-period adjustments~~

Table of $4.7 million primarily related to a reduction in deferred income tax liabilities, which resulted in a corresponding reduction in goodwill. Goodwill arising from the acquisition of $372.0 million, included in the North America segment, was attributable to expected growth opportunities, an assembled workforce and potential synergies from combining the acquired business into our existing business. We expect that substantially all of the goodwill from this acquisition will not be deductible for income tax purposes.

~~The following table reflects the estimated fair values of the identified intangible assets of AdvancedMD and the respective aggregated weighted-average estimated amortization periods:~~

Estimated Fair Values Weighted-Average Estimated Amortization Periods

(in thousands) (years)
Customer-related intangible assets $ 303,100
11
Acquired technologies 83,700
5
Trademarks and trade names 32,700
15
Total estimated identified intangible assets $ 419,500
10

Contents

~~Valuation of Identified Intangible Assets~~

For the acquisitions discussed above, the estimated fair values of customer-related and contract-based intangible assets were generally determined using the income approach, which was based on projected cash flows discounted to their present value using discount rates that consider the timing and risk of the forecasted cash flows. The discount rates used represented the average estimated value of a market participant’s cost of capital and debt, derived using customary market metrics. Acquired technologies were valued using the replacement cost method, which required us to estimate the costs to construct an asset of equivalent utility at prices available at the time of the valuation analysis, with adjustments in value for physical deterioration and functional and economic obsolescence. Trademarks and trade names were valued using the "relief-from-royalty" approach. This method assumes that trademarks and trade names have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. This method required us to estimate the future revenues for the related brands, the appropriate royalty rate and the weighted-average cost of capital.

NOTE 3—REVENUES

The following tables present a disaggregation of our ~~revenue~~revenues from contracts with customers by geography for each of our reportable segments for the three and nine months ended September 30, 2020 and 2019:


	Three months ended September 30, 2020
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	1,039,039	$	370,938	$	204,106	$	(15,097)	$	1,598,986
Europe	154,262		113,907		0		0		268,169
Asia Pacific	50,660		2,564		0		(2,564)		50,660
	$	1,243,961	$	487,409	$	204,106	$	(17,661)	$	1,917,815


	Three months ended September 30, 2019
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	786,659	$	55,091	$	27,896	$	(2,310)	$	867,336
Europe	159,592		20,321		0		0		179,913
Asia Pacific	58,692		216		0		(216)		58,692
	$	1,004,943	$	75,628	$	27,896	$	(2,526)	$	1,105,941


	Nine Months Ended September 30, 2020
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	2,926,472	$	1,127,832	$	624,774	$	(47,558)	$	4,631,520
Europe	392,721		327,532		0		0		720,253
Asia Pacific	141,592		5,832		0		(5,832)		141,592
	$	3,460,785	$	1,461,196	$	624,774	$	(53,390)	$	5,493,365


	Nine Months Ended September 30, 2019
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	2,181,000	$	55,092	$	27,896	$	(2,311)	$	2,261,677
Europe	452,317		30,814		0		0		483,131
Asia Pacific	179,323		216		0		(216)		179,323
	$	2,812,640	$	86,122	$	27,896	$	(2,527)	$	2,924,131

Table of Contents

The following table presents a disaggregation of our Merchant Solutions segment revenues by distribution channel for the three and nine months ended September 30, ~~2019~~2020 and ~~2018:~~2019:


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019

	(in thousands)

Relationship-led	$	709,749	$	538,112	$	1,934,265	$	1,499,393
Technology-enabled	534,212		466,831		1,526,520		1,313,247
	$	1,243,961	$	1,004,943	$	3,460,785	$	2,812,640

Three Months Ended September 30, 2019
North America Europe Asia-Pacific TSYS Total

(in thousands)

Direct:
Relationship-led $ 310,389
$ 114,562
$ 29,829
$ —
$ 454,780
Technology-enabled 369,147
50,388
28,851
—
448,386
679,536
164,950
58,680
—
903,166
Wholesale 55,305
—
—
—
55,305
734,841
164,950
58,680
—
958,471
TSYS —
—
—
147,470
147,470
$ 734,841
$ 164,950
$ 58,680
$ 147,470
$ 1,105,941

Nine Months Ended September 30, 2018
North America Europe Asia-Pacific TSYS Total

(in thousands)

Direct:
Relationship-led $ 725,874
$ 300,642
$ 101,225
$ —
$ 1,127,741
Technology-enabled 896,982
155,850
68,549
—
1,121,381
1,622,856
456,492
169,774
—
2,249,122
Wholesale 236,689
—
—
—
236,689
1,859,545
456,492
169,774
—
2,485,811
TSYS —
—
—
—
—
$ 1,859,545
$ 456,492
$ 169,774
$ —
$ 2,485,811

ASC Topic 606,Revenues from Contracts with Customers ("ASC 606"), requires that we determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the three and nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, substantially all of our revenues were recognized over time.

Supplemental balance sheet information related to contracts from customers as of September 30, ~~2019~~2020 and December 31, ~~2018~~2019 was as follows:

Balance Sheet Location September 30, 2019 December 31, 2018

(in thousands)

Assets:
Capitalized costs to obtain customer contracts, net Other noncurrent assets $ 216,540
$ 194,616
Capitalized costs to fulfill customer contracts, net Other noncurrent assets $ 24,114
$ 12,954

Liabilities:
Contract liabilities, net (current) Accounts payable and accrued liabilities $ 195,472
$ 146,947
Contract liabilities, net (noncurrent) Other noncurrent liabilities $ 28,039
$ 8,595

~~The increase in contract liabilities during the nine months ended September 30, 2019 was primarily attributable to contract liabilities assumed in the Merger.~~ Net contract assets were not material at September 30, ~~2019~~2020 or at December 31, ~~2018.~~

2019. Revenue recognized for the three months ended September 30, ~~2019~~2020 and ~~2018~~2019 from contract liability balances at the beginning of each period was ~~$52.0~~$69.7 million and ~~$39.2 million, respectively.~~$52.0 million. Revenue recognized for the nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 from contract liability balances at the beginning of each period was ~~$122.7~~$195.3 million and ~~$90.2 million, respectively.~~$122.7 million.

ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations. The purpose of this disclosure is to provide additional information about the amounts and expected timing of revenue to be recognized from the remaining performance obligations in our existing contracts. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at ~~the end of the reporting period.~~September 30, 2020. However, as permitted, ~~by ASC 606,~~ we have elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. Accordingly, the total unsatisfied or partially unsatisfied performance obligations related to processing services is significantly higher than the amounts disclosed in the table ~~below.~~

~~Estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at September 30, 2019 as follows~~below (in thousands):

Year ending December 31,
Remainder of 2019 $ 228,002
2020 746,107
2021 608,080
2022 435,065
2023-2029 526,047
Total $ 2,543,301

NOTE 4—GOODWILL AND OTHER INTANGIBLE ASSETS

As of September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, goodwill and other intangible assets consisted of the following:

September 30, 2019 December 31, 2018

(in thousands)

Goodwill $ 23,754,450
$ 6,341,355
Other intangible assets:
Customer-related intangible assets $ 8,812,560
$ 2,486,217
Acquired technologies 2,726,862
896,701
Contract-based intangible assets 1,981,156
178,391
Trademarks and trade names 1,357,763
289,588
14,878,341
3,850,897
Less accumulated amortization:
Customer-related intangible assets 1,032,218
860,715
Acquired technologies 474,904
351,170
Contract-based intangible assets 75,804
67,160
Trademarks and trade names 111,024
83,234
1,693,950
1,362,279
$ 13,184,391
$ 2,488,618

The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the nine months ended September 30, ~~2019:~~2020:

North America Europe Asia-Pacific TSYS Total

(in thousands)

Balance at December 31, 2018 $ 5,530,087
$ 484,761
$ 326,507
$ —
$ 6,341,355
Effect of foreign currency translation 3,217
(19,533 ) (11,542 ) —
(27,858 )
Goodwill acquired —
—
—
17,440,560
17,440,560
Measurement-period adjustments (4,370 ) —
4,763
—
393
Balance at September 30, 2019 $ 5,528,934
$ 465,228
$ 319,728
$ 17,440,560
$ 23,754,450

There were 0 accumulated impairment losses for goodwill as of September 30, ~~2019~~2020 or December 31, ~~2018.~~2019.

NOTE ~~5—LEASES~~5 - OTHER ASSETS

Our leases consist primarily of operating real estate leases for office space and data centers in the markets in which we conduct business. We also have operating and finance leases for computer and other equipment. ManyThrough certain of our ~~leases include escalating rental payments~~subsidiaries in Europe, we were a member and ~~incentives, as well as termination and renewal options. Certain~~shareholder of ~~our lease agreements provide that we pay the cost of property taxes, insurance and maintenance. As described in "Note 1—Basis of Presentation and Summary~~

~~of Significant Accounting Policies," we adopted ASU 2016-02 on January 1, 2019. Unless otherwise indicated, the following information in this footnote applies only to periods after December 31, 2018.~~

We evaluate each of our lease and service arrangements at inception to determine if the arrangement is, or contains, a lease and the appropriate classification of each identified lease. A lease exists if we obtain substantiallyVisa Europe Limited ("Visa Europe"). On June 21, 2016, Visa Inc. ("Visa") acquired all of the ~~economic benefits~~membership interests in Visa Europe and we received consideration in the form of cash and ~~have~~Series B and C convertible preferred shares of Visa. We assigned the ~~right to control the use~~preferred shares received a value of an asset for a period of time. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease agreement. We recognize right-of-use assets and lease liabilities at the lease commencement date0 based on transfer restrictions, Visa's ability to adjust the ~~present values~~conversion rate and the estimation uncertainty associated with those factors. Based on the outcome of ~~fixed lease payments over~~any current or potential litigation involving Visa Europe in the ~~term~~United Kingdom and elsewhere in Europe, the conversion rate of the ~~lease. Right-of-use assets may also~~preferred shares could be adjusted ~~to reflect any prepayments made or any incentive payments received. Operating lease costs~~down such that the number of Visa common shares we receive could be as low as 0.

The Series B and ~~depreciation expense for finance leases are recognized as expense~~C convertible preferred shares become convertible in stages based on ~~a straight-line basis over the lease term. We consider a termination or renewal option~~developments in the ~~determination~~litigation and become fully convertible no later than 2028 (subject to a holdback to cover any then pending claims). On September 24, 2020, in connection with the first mandatory release assessment, a portion of the ~~lease term when it is reasonably certain that we will exercise that option. The weighted-average remaining lease term for operating~~Series B and ~~finance leases at September 30, 2019 was 7.5 years~~C convertible preferred shares were converted by Visa. We recognized a gain of $27.3 million reported in interest and 5.4 years, respectively. Because our leases generally do not provide a readily determinable implicit interest rate, we use an incremental borrowing rate to measure the lease liability and associated right-of-use asset at the lease commencement date. The incremental borrowing rate used is a fully collateralized rate that considers our credit rating, market conditions and the term of the lease at the lease commencement date. As of September 30, 2019, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 4.1% and 2.8%, respectively.

~~The effects of adopting ASU 2016-02 on our balance sheet as of January 1, 2019 are set forth in the table below. Adoption did not have a material effect on any line items~~other income in our consolidated ~~statement~~statements of income or on our cash flows from operating activities, investing activities or financing activities included in our consolidated statement of cash flows. As of September 30, 2019 and January 1, 2019, right-of-use assets and lease liabilities consisted of the following:

Balance Sheet Location September 30, 2019 January 1, 2019

(in thousands)

Assets:
Operating lease right-of-use assets:
Real estate Other noncurrent assets $ 368,816
$ 231,720
Computer equipment Other noncurrent assets 85,961
—
Other Other noncurrent assets 1,215
4,259
Total operating lease right-of-use-assets 455,992
235,979

Finance lease right-of-use assets:
Computer equipment Property and equipment, net $ 22,020
$ —
Other Property and equipment, net 4,702
—
26,722
—
Less accumulated depreciation:
Computer equipment Property and equipment, net (470 ) —
Other Property and equipment, net (17 ) —
Total accumulated depreciation (487 ) —
Total finance lease right-of-use assets 26,235
—
Total right-of-use assets⁽¹⁾
$ 482,227
$ 235,979

Liabilities:
Operating lease liabilities (current) Accounts payable and accrued liabilities $ 88,280
$ 37,339
Operating lease liabilities (noncurrent) Other noncurrent liabilities 413,111
236,697
Finance lease liabilities (current) Current portion of long-term debt 6,414
—
Finance lease liabilities (noncurrent) Long-term debt 27,852
—
Total lease liabilities $ 535,657
$ 274,036

⁽¹⁾~~Approximately 85% of our right-of-use assets are located in the United States.~~

~~As of September 30, 2019, maturities of lease liabilities were as follows:~~

Operating Leases
Finance
Leases

(in thousands)

Year ending December 31,
Remainder of 2019 $ 22,197
$ 1,781
2020 106,212
7,328
2021 97,330
7,100
2022 86,099
7,066
2023 57,251
6,674
2024 47,250
6,597
2025 and thereafter 180,794
273
Total lease payments⁽¹⁾
597,133
36,819
Imputed interest (95,742 ) (2,553 )
Total lease liabilities $ 501,391
$ 34,266

⁽¹⁾Total operating lease payments did not include approximately $40 million for operating leases that had not yet commenced at September 30, 2019. We expect the lease commencement dates for these leases to occur later in 2019 and in 2020.

Operating lease costs in our consolidated statement of income for the three months ended September 30, 2019 were $23.4 million, including $20.4 million in selling, general and administrative expenses and $3.0 million in cost of services.Operating lease costs in our consolidated statement of income for the nine months ended September 30, 2019 were $53.3 million, including $47.9 million in selling, general and administrative expenses and $5.4 million in cost of services.~~Total lease costs~~ for the three and nine months ended September 30, ~~2019 include variable lease costs of approximately $9.0 million and $14.0 million, respectively, which are primarily comprised~~2020 based on the fair value of the ~~cost of property taxes, insurance~~shares received. The shares were recorded at fair value within prepaid expenses and ~~maintenance. Finance lease costs and lease costs for leases with a term of less than twelve months were not material for the three and nine months ended~~other current assets in our consolidated balance sheet at September 30, ~~2019.~~

~~Cash paid for amounts included~~2020, and subsequently sold in ~~the measurement~~October. As of ~~operating lease liabilities for the nine months ended~~ September 30, ~~2019 was $43.0 million, which is included as a component~~2020, the remaining Series B and C convertible preferred shares continue to be carried at an assigned value of ~~cash provided by operating activities in~~0 based on the ~~consolidated statement~~aforementioned factors.

Table of cash flows. Operating lease liabilities arising from obtaining new or modified right-of-use assets, net of reductions resulting from certain lease modifications, were approximately $23.5 million for the nine months ended September 30, 2019. In connection with the Merger, we acquired right-of-use assets and assumed lease liabilities of $256.6 million and $271.9 million, respectively.

~~Future minimum payments at December 31, 2018 for noncancelable operating leases were as follows (in thousands):~~

Year ending December 31:
2019 $ 50,095
2020 47,700
2021 40,035
2022 37,055
2023 33,298
2024 and thereafter 225,225
Total future minimum payments⁽¹⁾
$ 433,408

⁽¹⁾~~Future minimum lease payments included approximately $70 million for operating leases that had not commenced at December 31, 2018.~~Contents

NOTE 6—LONG-TERM DEBT AND LINES OF CREDIT

As of September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, long-term debt consisted of the following:


	September 30, 2020		December 31, 2019

	(in thousands)

3.800% senior notes due April 1, 2021	$	754,398	$	760,996
3.750% senior notes due June 1, 2023	563,526		567,330
4.000% senior notes due June 1, 2023	567,578		572,522
2.650% senior notes due February 15, 2025	992,688		991,423
4.800% senior notes due April 1, 2026	812,149		820,623
4.450% senior notes due June 1, 2028	483,687		486,982
3.200% senior notes due August 15, 2029	1,236,029		1,234,843
2.900% senior notes due May 15, 2030	988,664		0
4.150% senior notes due August 15, 2049	739,699		739,431
Unsecured term loan facility	1,984,858		1,981,758
Unsecured revolving credit facility	0		903,000
Finance lease liabilities	65,142		32,996
Other borrowings	80,044		33,597
Total long-term debt	9,268,462		9,125,501
Less current portion	831,500		35,137
Long-term debt, excluding current portion	$	8,436,962	$	9,090,364

September 30, 2019 December 31, 2018

(in thousands)

Long-term Debt
3.800% senior notes due April 1, 2021 $ 763,194
$ —
3.750% senior notes due June 1, 2023 568,598
—
4.000% senior notes due June 1, 2023 574,170
—
2.650% senior notes due February 15, 2025 991,090
—
4.800% senior notes due April 1, 2026 823,448
—
4.450% senior notes due June 1, 2028 488,081
—
3.200% senior notes due August 15, 2029 1,234,560
—
4.150% senior notes due August 15, 2049 739,410
—
Unsecured term loan facility 1,980,886
—
Unsecured revolving credit facility 783,000
—
Secured term loans (outstanding under our Prior Credit Facility) —
4,426,243
Secured revolving credit facility (outstanding under our Prior Credit Facility) —
704,000
Finance lease liabilities 34,266
—
Other borrowings 40,374
—
Total long-term debt 9,021,077
5,130,243
Less current portion 33,373
115,075
Long-term debt, excluding current portion $ 8,987,704
$ 5,015,168

The carrying amounts of our senior notes and term loans in the table above are presented net of unamortized discount and unamortized debt issuance costs, as applicable. At September 30, ~~2019,~~2020, unamortized discount on senior notes was ~~$6.0~~$8.7 million,, and unamortized debt issuance costs on senior notes and the unsecured term loan facility were ~~$48.0~~$49.4 million. Unamortized debt issuance costs on our ~~secured~~senior notes and unsecured term loans at December 31, ~~2018~~2019 were ~~$37.4~~$46.6 million. The portion of unamortized debt issuance costs related to revolving credit facilities is included in other noncurrent assets. At September 30, ~~2019~~,2020, unamortized debt issuance costs on the unsecured revolving credit facility were ~~$18.6~~$14.7 million, and, atat December 31, ~~2018,~~2019, unamortized debt issuance costs on the ~~secured~~unsecured revolving credit facility were ~~$12.9~~$17.6 million.The amortization of debt discounts and debt issuance costs ~~are~~is recognized as an increase to interest expense over the terms of the respective debt instruments. Amortization of discounts and debt issuance costs ~~was $3.1 million and $9.2 million, respectively,~~ for the three and nine months ended September 30, ~~2019.~~2020 was $3.1 million and $8.9 million, respectively. Amortization of discounts and debt issuance costs for the three and nine months ended September 30, ~~2018~~2019 was ~~$2.9~~$3.1 million and ~~$8.6~~$9.2 million, respectively.

At September 30, ~~2019,~~2020, future maturities of long-term debt (excluding finance lease liabilities) were as follows by year (in thousands):

Year ending December 31,
Remainder of 2019 $ 11,536
2020 22,953
2021 754,906
2022 50,038
2023 1,300,000
2024 2,533,000
2025 and thereafter 4,200,000
Total $ 8,872,433

~~See "Note 5—Leases" for more information about~~Senior Unsecured Notes

We have $7.1 billion in aggregate principal amount of senior unsecured notes, as presented in the table above. Interest on the senior notes is payable semi-annually at various dates. Each series of the senior notes is redeemable, at our ~~finance lease liabilities, including maturities.~~

~~On May 27, 2019,~~option, in ~~connection with our entry into~~whole or in part, at any time and from time-to-time at the redemption prices set forth in the related indenture. The difference between the acquisition fair value and face value of senior notes assumed in the Merger ~~Agreement described in "Note 2—Acquisitions," we obtained commitments for a $2.75 billion, 364-day senior unsecured bridge facility (the "Bridge Facility"). On July 9, 2019, upon our entry into~~is recognized over the Term Loan Facility and the Unsecured Revolving Credit Facility (each as defined below), the aggregate commitments under the Bridge Facility were reduced to approximately $2.1 billion. Concurrently with the issuanceterms of the ~~Senior Notes (as defined below), the remaining aggregate commitments under the Bridge Facility were reduced to 0~~respective notes as a reduction of interest expense. The amortization of this fair value adjustment was $9.0 million and ~~terminated. For~~$27.1 million, respectively, for the three and nine months ended September 30, ~~2019, we recognized $8.8 million and $11.7 million, respectively, of fees associated with the Bridge Facility in interest expense.~~2020.

On ~~July 9, 2019,~~May 15, 2020, we ~~entered into~~issued $1.0 billion in aggregate principal amount of 2.900% senior unsecured notes due May 2030 and received proceeds of $996.7 million. We incurred debt issuance costs of approximately $8.4 million, including underwriting fees, fees for professional services and registration fees, which were capitalized and reflected as a reduction of the related carrying amount of the notes in our consolidated balance sheet at September 30, 2020. Interest on the notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing November 15, 2020. The notes are unsecured and unsubordinated indebtedness and rank equally in right of payment with all of our other outstanding unsecured and unsubordinated indebtedness. We used the net proceeds from the offering to repay a portion of the outstanding indebtedness on our revolving credit facility and for general corporate purposes.

As of September 30, 2020, our senior notes had a total carrying amount of $7.1 billion and an estimated fair value of $7.7 billion. The estimated fair value of our senior notes was based on quoted market prices in an active market and is considered to be a Level 1 measurement of the valuation hierarchy. The fair value of other long-term debt approximated its carrying amount at September 30, 2020.

Senior Unsecured Credit Facilities

We have a term loan credit agreement ("Term Loan Credit Agreement") and a revolving credit agreement ("Unsecured Revolving Credit Agreement") in each case with Bank of America, N.A., as administrative agent, and a syndicate of financial institutions, as lenders and other agents. The Term Loan Credit Agreement provides for a senior unsecured ~~$2.0~~$2 billion term loan facility, ~~("Term Loan Facility"). The~~and the Unsecured Revolving Credit Agreement provides for a senior unsecured ~~$3.0~~$3 billion revolving credit facility ("Unsecured Revolving Credit Facility," together with the Term Loan Facility, the "New Facilities"). We capitalized debt issuance costs of $12.8 million in connection with the issuances under the New Facilities.facility.

Borrowings under the ~~Term Loan Facility~~term loan facility were made in U.S. dollars and borrowings under the ~~Unsecured Revolving Credit Facility~~revolving credit facility are available to be made in U.S. dollars, euros, sterling, Canadian dollars and, subject to ~~certain~~specific conditions, certain other currencies at our option. Borrowings in U.S. dollars and certain other ~~London Interbank Offered Rate ("LIBOR")-quoted~~LIBOR quoted currencies will bear interest, at our option, at a rate equal to either (1) the rate (adjusted for any statutory reserve requirements for eurocurrency liabilities) for eurodollar deposits in the London interbank market, (2) a floating rate of interest set forth on the applicable LIBOR screen page designated by Bank of America, N.A. or (3) the highest of (a) the federal funds effective rate plus 0.5%, (b) the rate of interest as publicly announced by Bank of America as its "prime rate" or (c) LIBOR plus 1.0%, in each case, plus an applicable margin.

As of September 30, ~~2019,~~2020, the interest ~~rates~~rate on the ~~Term Loan Facility and the Unsecured Revolving Credit Facility were 3.42% and 3.33%, respectively.~~term loan facility was 1.52%. In addition, we are required to pay a quarterly commitment fee with respect to the unused portion of the ~~Unsecured Revolving Credit Facility~~revolving credit facility at an applicable rate per annum ranging from 0.125% to 0.300% depending on our credit rating. Beginning on December 31, 2022, and at the end of each quarter thereafter, the ~~Term Loan Facility~~term loan facility must be repaid in quarterly installments in the amount of 2.50% of original principal through the maturity date with the remaining principal balance due upon maturity in September 2024. The ~~Unsecured Revolving Credit Agreement~~revolving credit facility also matures in September 2024.

We may issue standby letters of credit of up to $250 million in the aggregate under the ~~Unsecured Revolving Credit Facility.~~revolving credit facility. Outstanding letters of credit under the ~~Unsecured Revolving Credit Facility~~revolving credit facility reduce the amount of borrowings available to us. The amounts available to borrow under the revolving credit facility are also determined by a financial leverage covenant. As of September 30, 2020, the total available commitments under the ~~Unsecured Revolving Credit Facility at September 30, 2019 were $2,198.8 million.~~

On August 14, 2019, we completed the public offering and issuance of $3.0 billion aggregate principal amount of senior unsecured notes, consisting of the following: (i) $1.0 billion aggregate principal amount of 2.650% senior notes due 2025; (ii) $1.25 billion aggregate principal amount of 3.200% senior notes due 2029; and (iii) $750 million aggregate principal amount of 4.150% senior notes due 2049 (collectively, the "Senior Notes"). Interest on the Senior Notes is payable semi-annually in arrears on each February 15 and August 15, beginning on February 15, 2020. Each series of the Senior Notes is redeemable, at our option, in whole or in part, at any time and from time-to-time at the redemption prices set forth in the related indenture. We issued the Senior Notes at a total discount of $6.1 million and capitalized related debt issuance costs of $29.3 million.

From August 14, 2019 to the closing date of the Merger, the proceeds from the issuance of the Senior Notes were held in escrow. Upon closing, the funds were released and used together with borrowings under the Term Loan Facility and the Unsecured Revolving Credit Facility and cash on hand to repay TSYS's unsecured revolving credit facility ~~to refinance certain of our existing indebtedness, to fund cash payments made in lieu of fractional shares payable in accordance with the terms of the Merger Agreement~~were $2.1 billion and ~~to pay transaction fees and costs related to the Merger.~~

there were 0 outstanding borrowings.

In addition, in connection with the Merger, we assumed $3.0 billion aggregate principal amount of senior unsecured notes of TSYS, consisting of the following: (i) $750 million aggregate principal amount of 3.800% senior notes due 2021; (ii) $550 million aggregate principal amount of 3.750% senior notes due 2023; (iii) $550 million aggregate principal amount of 4.000% senior notes due 2023; (iv) $750 million aggregate principal amount of 4.800% senior notes due 2026; and (v) $450 million aggregate principal amount of 4.450% senior notes due 2028. For the 3.800% senior notes due 2021 and the 4.800% senior notes due 2026, ~~interest is payable semi-annually each April 1 and October 1. For the~~ ~~3.750% senior notes due 2023, the 4.000% senior notes due 2023 and the 4.450% senior notes due 2028, interest is payable semi-annually each June 1 and December 1.~~

The senior notes assumed in the Merger were measured at fair value of $3.2 billion at the acquisition date, which exceeded their aggregate face value by $169.0 million. The difference between the fair value and face value of the assumed senior notes is recognized over the terms of the respective notes as a reduction of interest expense. The amortization of this fair value adjustment was $1.5 million for the three and nine months ended September 30, 2019.

As of September 30, 2019, our senior notes had an estimated fair value of $6,313.2 million. The estimated fair value of our senior notes was based on quoted market prices in an active market and is considered to be a Level 1 measurement of the valuation hierarchy. The fair value of other long-term debt approximated its carrying amount at September 30, 2019.

~~Prior Credit Facility~~

Prior to completion of the Merger, we were party to a credit facility agreement with Bank of America, N.A., as administrative agent, and a syndicate of financial institutions, as lenders and other agents (as amended from time to time, the "Prior Credit Facility"). The Prior Credit Facility provided for secured financing comprised of (i) a $1.5 billion revolving credit facility; (ii) a $1.5 billion term loan; (iii) a $1.37 billion term loan; (iv) a $1.14 billion term loan; and (v) a $500 million term loan. Upon the consummation of the Merger, all borrowings outstanding and other amounts due under the Prior Credit Facility were repaid with proceeds from the New Facilities and the Prior Credit Facility was terminated. In connection with the extinguishment of the Prior Credit Facility in the three months ended September 30, 2019, we wrote-off related unamortized debt issuance costs of $16.7 million to interest expense.

Compliance with Covenants

The ~~Term Loan Credit Agreement contains~~senior unsecured term loan and revolving credit facility contain customary conditions to funding, affirmative

covenants, negative covenants, financial covenants and events of default. ~~The Unsecured Revolving Credit Facility Agreement contains customary conditions to funding, affirmative covenants, negative covenants and events of default.~~ As of September 30, ~~2019,~~2020, financial covenants under the ~~Term Loan Credit Agreement~~term loan facility required a leverage ratio of 3.50 to 1.00 and an interest coverage ratio of 3.00 to 1.00. We were in compliance with all applicable covenants as of September 30, ~~2019.~~2020.

Settlement Lines of Credit

In various markets where we do business, we have specialized lines of credit, ~~which~~that are restricted for use in funding settlement. The settlement lines of credit generally have variable interest rates, are subject to annual review and are denominated in local currency but may, in some cases, facilitate borrowings in multiple currencies. For certain of our lines of credit, the available credit is increased by the amount of cash we have on deposit in specific accounts with the lender. Accordingly, the amount of the outstanding ~~line~~lines of credit may exceed the stated credit limit. As of September 30, ~~2019 and December 31, 2018,~~2020, a total of ~~$72.1~~$58.5 million ~~and $70.6 million, respectively,~~ of cash on deposit was used to determine the available credit.

As of September 30, ~~2019~~2020 and December 31, ~~2018, respectively,~~2019, we had ~~$547.6~~$439.4 million and ~~$700.5~~$463.2 million, respectively, outstanding under these lines of credit with additional capacity to fund settlement of ~~$871.9~~$1,387.3 million as of September 30, ~~2019. The weighted-average interest rate on these borrowings was 3.34% and 2.97% at September 30, 2019 and December 31, 2018, respectively.~~2020. During the three months ended September 30, ~~2019,~~2020, the maximum and average outstanding balances under these lines of credit were ~~$699.0~~$560.7 million and ~~$426.6~~$324.6 million, respectively. The weighted-average interest rate on these borrowings was 2.05% and 3.16% at September 30, 2020 and December 31, 2019, respectively.

Derivative Agreements

We have interest rate swap agreements with financial institutions to hedge changes in cash flows attributable to interest rate risk on a portion of our variable-rate debt instruments. Net amounts to be received or paid under the swap agreements are reflected as adjustments to interest expense. Since we have designated the interest rate swap agreements as portfolio cash flow hedges, unrealized gains or losses resulting from adjusting the swaps to fair value are recorded as components of other comprehensive income (loss).

In addition, in June 2019, we entered into forward-starting interest rate swap agreements with an aggregate notional amount of $1.0 billion. The forward-starting interest rate swaps, designated as cash flow hedges, were designed to manage the exposure to interest rate volatility in anticipation of the issuance of the Senior Notes. During the period from the commencement of the swaps through the date upon which the Senior Notes were issued, the effective portion of the unrealized losses on the swaps was included in other comprehensive loss. Upon issuance of the Senior Notes, we terminated the forward-starting swap agreements and made settlement payments of $48.3 million, which are included cash flows from operating activities in our consolidated statement of cash flows for the nine months ended September 30, 2019 within the caption labeled "Other, net." We have and will continue to reclassify the effective portion of the realized loss from accumulated other comprehensive loss into interest expense over the terms of the related Senior Notes.

The fair values of ~~the~~our interest rate swaps were determined based on the present value of the estimated future net cash flows using implied rates in the applicable yield curve as of the valuation date. These derivative instruments were classified within Level 2 of the valuation hierarchy.

The table below presents ~~the fair values of~~information about our derivative financial instruments, designated as cash flow hedges, included in the consolidated balance sheets:


				Fair Values
Derivative Financial Instruments	Balance Sheet Location	Weighted-Average Fixed Rate of Interest at September 30, 2020	Range of Maturity Dates at September 30, 2020	September 30, 2020		December 31, 2019

				(in thousands)

Interest rate swaps (Notional of $250 million at December 31, 2019)	Prepaid expenses and other current assets	NA	NA	$	0	$	472
Interest rate swaps (Notional of $300 million at September 30, 2020)	Accounts payable and accrued liabilities	1.91%	March 31, 2021	$	2,662	$	0
Interest rate swaps (Notional of $1.55 billion at September 30, 2020 and $1.55 billion at December 31, 2019)	Other noncurrent liabilities	2.73%	December 31, 2022	$	74,102	$	45,604

Fair Values
Derivative Financial Instruments Balance Sheet Location Weighted-Average Fixed Rate of Interest at September 30, 2019
Range of Maturity Dates at
September 30, 2019

September 30,
2019
December 31, 2018

(in thousands)

Interest rate swaps (Notional of $500 million at September 30, 2019 and $750 million at December 31, 2018) Prepaid expenses and other current assets 1.46% December 31, 2019 - July 31, 2020 $ 950
$ 3,200
Interest rate swaps (Notional of $550 million at December 31, 2018) Other noncurrent assets NA NA $ —
$ 8,256
Interest rate swaps (Notional of $1.5 billion at September 30, 2019 and $950 million at December 31, 2018) Other noncurrent liabilities 2.57% March 31, 2021 - December 31, 2022 $ 55,238
$ 14,601

NA -= not applicable.

The table below presents the effects of our interest rate swaps on the consolidated statements of income and comprehensive income for the three and nine months ended September 30, ~~2019~~2020 and ~~2018:~~2019:

Three Months Ended Nine Months Ended
September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018

(in thousands)

Net unrealized (losses) gains recognized in other comprehensive loss $ (40,265 ) $ 1,845
$ (96,997 ) $ 12,353
Net unrealized losses (gains) reclassified out of other comprehensive loss to interest expense $ 1,193
$ (1,663 ) $ (1,530 ) $ (2,830 )

As of September 30, ~~2019,~~2020, the amount of net unrealized losses in accumulated other comprehensive loss related to our interest rate swaps that is expected to be reclassified into interest expense during the next 12 months was ~~approximately $19.1~~$40.9 million.

Interest expense was ~~approximately $96~~$82.1 million and ~~$46~~$96.0 million for the three months ended September 30, ~~2019~~2020 and ~~2018,~~2019, respectively, and ~~approximately $221~~$244.3 million and ~~$140~~$221.0 million for the nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, respectively.

Our effective income tax rates for the three and nine months ended September 30, 2020 were 18.0% and 14.1%, respectively. Our effective income tax rate for the three months ended September 30, 2020 differed from the U.S. statutory rate primarily due to tax credits, foreign interest income not subject to tax, the foreign-derived intangible income deduction, changes in uncertain tax positions and the tax effect of the U.K. statutory income tax rate change that took effect during the quarter. Our effective income tax rate for the nine months ended September 30, 2020 differed from the U.S. statutory rate primarily due to tax credits, foreign interest income not subject to tax, the foreign-derived intangible income deduction and excess tax benefits of share-based awards.

Our effective income tax rate for the three months ended September 30, 2019 was a benefit of 18.7%, and our effective income tax rate for the nine months ended September 30, 2019 was 10.1%. Our effective income tax rates for those periods differed from the U.S. statutory rate primarily ~~as a result of:~~

Our effective income tax rate for the three months ended September 30, 2018 was a benefit of 3.4%, and our effective income tax rate for the nine months ended September 30, 2018 was 10.4%. During the three and nine months ended September 30, 2018, we reduced our estimated transition tax liability associated with the U.S. Tax Cuts and Jobs Act of 2017 by $23.3 million, which was the primary reason our effective income tax rates for those periods differed from the U.S. statutory rate.

We conduct business globally and file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities around the ~~world, including, without limitation, the United States and the United Kingdom.~~world. We are no longer subject to state income tax examinations for years ended on or before May 31, ~~2010,~~2007, U.S. federal income tax examinations for years ended on or before May 31, 2016 and U.K. federal income tax examinations for years ended on or before May 31, ~~2015.~~2016.

NOTE 8—SHAREHOLDERS’ EQUITY

We repurchase our common stock mainly through open market repurchase plans and, at times, through accelerated share repurchase programs. During the three months ended September 30, 2020 and 2019, there were 0 repurchases. During the nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, we repurchased and retired ~~1,808,398 shares~~2,094,731 and ~~1,612,174~~1,808,398 shares of our common stock at a cost, including commissions, of $404.0 million and $230.0 million, or $192.85 per share and ~~$180.9 million, respectively, or~~ $127.18 per share, ~~and $112.19 per share. We did not~~respectively.

On October 28, 2020, our board of directors approved an increase to our existing share repurchase ~~any shares of our common stock during~~program authorization, which raised the ~~three months ended September 30, 2019 and 2018.~~total available authorization to $1.25 billion. As of September 30, ~~2019, we were authorized to~~2020, the amount that may yet be purchased under our share repurchase ~~up to $568.0 million of our common stock.~~

~~In connection with the completion of the Merger, our Articles of Incorporation were amended to increase the number of authorized shares of Global Payments common stock from 200 million to 400~~program was $880.0 million.

On October ~~24, 2019,~~28, 2020, our board of directors declared a dividend of $0.195 per share payable on December ~~27, 2019~~31, 2020 to common shareholders of record as of December ~~13, 2019.~~17, 2020.

NOTE 9—SHARE-BASED AWARDS AND STOCK OPTIONS

The following table summarizes share-based compensation expense and the related income tax benefit recognized for our share-based awards and stock options:

Three Months Ended Nine Months Ended
September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018

(in thousands)

Share-based compensation expense $ 27,877
$ 14,833
$ 55,791
$ 44,937
Income tax benefit $ 4,396
$ 3,614
$ 10,633
$ 10,276

The following table summarizes the changes in unvested restricted stock and performance awards for the nine months ended September 30, ~~2019:~~2020:

The total fair value of restricted stock and performance awards vested during the nine months ended September 30, ~~2019~~2020 and September 30, ~~2018~~2019 was $77.9 million and $35.3 million, ~~and $45.0 million,~~ respectively.

For restricted stock and performance awards, we recognized compensation expense of ~~$20.2~~$38.9 million and ~~$13.8~~$20.2 million during the three months ended September 30, ~~2019~~2020 and ~~September 30, 2018,~~2019, respectively, and ~~$45.0~~$94.9 million and ~~$41.1~~$45.0 million during the nine months ended September 30, ~~2019~~2020 and ~~September 30, 2018,~~2019, respectively. As of September 30, ~~2019,~~2020, there ~~was $175.1~~were $187.7 million of unrecognized compensation expense related to unvested restricted stock and performance awards that we expect to recognize over a weighted-average period of ~~2.2~~2.1 years. ~~Our restricted stock and performance award plans provide for accelerated vesting under certain conditions.~~

The following table summarizes ~~changes in~~ stock option activity for the nine months ended September 30, ~~2019:~~2020:

Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value

(in thousands) (years) (in millions)

Outstanding at December 31, 2018 598

$59.16
6.2 $27.3
Replacement Awards 1,336
68.96

Granted 109
128.22

Exercised (221 ) 32.54

Outstanding at September 30, 2019 1,822

$73.71
6.8 $155.4

Options vested and exercisable at September 30, 2019 1,217

$57.29
5.9 $123.7

We recognized compensation expense for stock options of ~~$7.0~~$2.4 million and ~~$0.7~~$7.0 million during the three months ended September 30, 2020 and 2019, respectively, and ~~2018, respectively,~~$6.5 million and $8.6 million ~~and $2.3 million during~~for the nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, respectively. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2020 and 2019 ~~and 2018~~ was ~~$22.9~~$69.8 million and ~~$15.9~~$22.9 million, respectively. As of September 30, ~~2019,~~2020, we had ~~$15.4~~$10.5 million of unrecognized compensation expense related to unvested stock options that we expect to recognize over a weighted-average period of ~~1.7~~1.8 years.



Securities registered pursuant to Section 12(b) of the Act
Title of each class	~~Ticker~~Trading symbol	Name of exchange on which registered
Common stock, no par value	GPN	New York Stock Exchange



		Page
PART I - FINANCIAL INFORMATION
ITEM 1.	Unaudited Consolidated Statements of Income for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019	3
	Unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019	5
	Consolidated Balance Sheets at September 30, ~~2019~~2020 (unaudited) and December 31, ~~2018~~2019	6
	Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, ~~2019~~2020 and ~~2018~~2019	7
	Unaudited Consolidated Statements of Changes in Equity for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019	98
	Notes to Unaudited Consolidated Financial Statements	10
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	3128
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	4039
ITEM 4.	Controls and Procedures	4039
PART II - OTHER INFORMATION
ITEM 1.	Legal Proceedings	4240
ITEM 1A.	Risk Factors	4240
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4341
ITEM 6.	Exhibits	4442
	Signatures	4643


	Three Months Ended							Three Months Ended
	September 30, 2019			September 30, 2018				September 30, 2020		September 30, 2019

Revenues	$	1,105,941		$	857,670		Revenues	$	1,917,815	$	1,105,941
Operating expenses:							Operating expenses:
Cost of service	427,720			265,013			Cost of service	900,921		427,720
Selling, general and administrative	504,184			369,495			Selling, general and administrative	726,475		504,184
	931,904			634,508				1,627,396		931,904
Operating income	174,037			223,162			Operating income	290,419		174,037

Interest and other income	11,232			3,134			Interest and other income	29,983		11,232
Interest and other expense	(96,161		)	(46,356		)	Interest and other expense	(82,976)		(96,161)
	(84,929		)	(43,222		)		(52,993)		(84,929)
Income before income taxes	89,108			179,940
Income tax benefit	16,623			6,089
Income before income taxes and equity in income of equity method investments							Income before income taxes and equity in income of equity method investments	237,426		89,108
Income tax (expense) benefit							Income tax (expense) benefit	(42,834)		16,623
Income before equity in income of equity method investments							Income before equity in income of equity method investments	194,592		105,731
Equity in income of equity method investments, net of tax							Equity in income of equity method investments, net of tax	35,638		0
Net income	105,731			186,029			Net income	230,230		105,731
Net income attributable to noncontrolling interests, net of income tax	(10,687		)	(9,659		)
Net income attributable to noncontrolling interests, net of tax							Net income attributable to noncontrolling interests, net of tax	(9,259)		(10,687)
Net income attributable to Global Payments	$	95,044		$	176,370		Net income attributable to Global Payments	$	220,971	$	95,044

Earnings per share attributable to Global Payments:							Earnings per share attributable to Global Payments:
Basic earnings per share	$	0.54		$	1.12		Basic earnings per share	$	0.74	$	0.54
Diluted earnings per share	$	0.54		$	1.11		Diluted earnings per share	$	0.74	$	0.54


	Nine Months Ended							Nine Months Ended
	September 30, 2019			September 30, 2018				September 30, 2020		September 30, 2019

Revenues	$	2,924,131		$	2,485,811		Revenues	$	5,493,365	$	2,924,131
Operating expenses:							Operating expenses:
Cost of service	1,035,225			781,943			Cost of service	2,728,532		1,035,225
Selling, general and administrative	1,293,651			1,133,799			Selling, general and administrative	2,122,862		1,293,651
	2,328,876			1,915,742				4,851,394		2,328,876
Operating income	595,255			570,069			Operating income	641,971		595,255

Interest and other income	20,342			17,397			Interest and other income	35,277		20,342
Interest and other expense	(220,858		)	(139,681		)	Interest and other expense	(258,475)		(220,858)
	(200,516		)	(122,284		)		(223,198)		(200,516)
Income before income taxes	394,739			447,785
Income before income taxes and equity in income of equity method investments							Income before income taxes and equity in income of equity method investments	418,773		394,739
Income tax expense	(39,765		)	(46,441		)	Income tax expense	(59,173)		(39,765)
Income before equity in income of equity method investments							Income before equity in income of equity method investments	359,600		354,974
Equity in income of equity method investments, net of tax							Equity in income of equity method investments, net of tax	60,682		0
Net income	354,974			401,344			Net income	420,282		354,974
Net income attributable to noncontrolling interests, net of income tax	(27,132		)	(24,506		)
Net income attributable to noncontrolling interests, net of tax							Net income attributable to noncontrolling interests, net of tax	(18,406)		(27,132)
Net income attributable to Global Payments	$	327,842		$	376,838		Net income attributable to Global Payments	$	401,876	$	327,842

Earnings per share attributable to Global Payments:							Earnings per share attributable to Global Payments:
Basic earnings per share	$	2.00		$	2.37		Basic earnings per share	$	1.34	$	2.00
Diluted earnings per share	$	2.00		$	2.36		Diluted earnings per share	$	1.34	$	2.00


	September 30, 2020		December 31, 2019
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,220,822	$	1,678,273
Accounts receivable, net	822,033		895,232
Settlement processing assets	1,385,308		1,353,778
Prepaid expenses and other current assets	540,487		439,165
Total current assets	4,968,650		4,366,448
Goodwill	23,745,340		23,759,740
Other intangible assets, net	12,251,680		13,154,655
Property and equipment, net	1,526,178		1,382,802
Deferred income taxes	6,822		6,292
Other noncurrent assets	2,051,112		1,810,225
Total assets	$	44,549,782	$	44,480,162
LIABILITIES AND EQUITY
Current liabilities:
Settlement lines of credit	$	439,371	$	463,237
Current portion of long-term debt	831,500		35,137
Accounts payable and accrued liabilities	1,696,048		1,822,166
Settlement processing obligations	1,448,335		1,258,806
Total current liabilities	4,415,254		3,579,346
Long-term debt	8,436,962		9,090,364
Deferred income taxes	2,966,020		3,145,641
Other noncurrent liabilities	767,704		609,822
Total liabilities	16,585,940		16,425,173
Commitments and contingencies
Equity:
Preferred stock, 0 par value; 5,000,000 shares authorized and NaN issued	0		0
Common stock, 0 par value; 400,000,000 shares authorized at September 30, 2020 and December 31, 2019; 299,286,847 issued and outstanding at September 30, 2020 and 300,225,590 issued and outstanding at December 31, 2019	0		0
Paid-in capital	25,620,599		25,833,307
Retained earnings	2,476,962		2,333,011
Accumulated other comprehensive loss	(351,904)		(310,571)
Total Global Payments shareholders’ equity	27,745,657		27,855,747
Noncontrolling interests	218,185		199,242
Total equity	27,963,842		28,054,989
Total liabilities and equity	$	44,549,782	$	44,480,162



	September 30, 2019			December 31, 2018
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,127,616		$	1,210,878
Accounts receivable, net	868,133			348,400
Settlement processing assets	1,556,307			1,600,222
Prepaid expenses and other current assets	440,512			216,708
Total current assets	4,992,568			3,376,208
Goodwill	23,754,450			6,341,355
Other intangible assets, net	13,184,391			2,488,618
Property and equipment, net	1,423,271			653,542
Deferred income taxes	12,477			8,128
Other noncurrent assets	1,844,890			362,923
Total assets	$	45,212,047		$	13,230,774
LIABILITIES AND EQUITY
Current liabilities:
Settlement lines of credit	$	547,624		$	700,486
Current portion of long-term debt	33,373			115,075
Accounts payable and accrued liabilities	1,849,424			1,176,703
Settlement processing obligations	1,852,731			1,276,356
Total current liabilities	4,283,152			3,268,620
Long-term debt	8,987,704			5,015,168
Deferred income taxes	3,352,727			585,025
Other noncurrent liabilities	632,746			175,618
Total liabilities	17,256,329			9,044,431
Commitments and contingencies
Equity:
Preferred stock, no par value; 5,000,000 shares authorized and none issued	—			—
Common stock, no par value; 400,000,000 shares authorized at September 30, 2019 and 200,000,000 shares authorized at December 31, 2018; 300,544,949 issued and outstanding at September 30, 2019 and 157,961,982 issued and outstanding at December 31, 2018	—			—
Paid-in capital	25,904,804			2,235,167
Retained earnings	2,297,897			2,066,415
Accumulated other comprehensive loss	(428,067		)	(310,175		)
Total Global Payments shareholders’ equity	27,774,634			3,991,407
Noncontrolling interests	181,084			194,936
Total equity	27,955,718			4,186,343
Total liabilities and equity	$	45,212,047		$	13,230,774



Shares of TSYS common stock issued and outstanding (including Single-Trigger Awards)	177,643
Exchange Ratio	0.8101
Shares of Global Payments common stock issued to TSYS shareholders	143,909
Price per share of Global Payments common stock	$	163.74
Fair value of common stock issued to TSYS shareholders⁽¹⁾	23,563,568
Value of Replacement Awards attributable to purchase consideration	207,821
Cash paid to TSYS shareholders in lieu of fractional shares	1,352
Total purchase consideration transferred to TSYS shareholders	23,772,741
Repayment of TSYS's unsecured revolving credit facility (including accrued interest and fees)	702,212
Total purchase consideration	$	24,474,953



Cash and cash equivalents	$	446,027
Accounts receivable	443,783
Identified intangible assets	11,020,000
Property and equipment	695,560
Other assets	1,476,290
Accounts payable and accrued liabilities	(594,558		)
Debt	(3,295,284		)
Deferred income tax liabilities	(2,843,643		)
Other liabilities	(313,782		)
Total identifiable net assets	7,034,393
Goodwill	17,440,560
Total purchase consideration	$	24,474,953



	Estimated Fair Values		Weighted-Average Estimated Amortization Periods

	(in thousands)		(years)
Customer-related intangible assets	$	6,330,000	18
Contract-based intangible assets	1,810,000		20
Acquired technologies	1,810,000		7
Trademarks and trade names	1,070,000		12
Total estimated identified intangible assets	$	11,020,000	14



	Three Months Ended September 30, 2019				Three Months Ended September 30, 2018
	Actual		Pro Forma		Actual		Pro Forma

	(in thousands)

Total revenues	$	1,105,941	$	1,993,089	$	857,670	$	1,864,534
Net income attributable to Global Payments	$	95,044	$	219,010	$	176,370	$	240,478



	Nine Months Ended September 30, 2019				Nine Months Ended September 30, 2018
	Actual		Pro Forma		Actual		Pro Forma

	(in thousands)

Total revenues	$	2,924,131	$	5,866,522	$	2,485,811	$	5,469,240
Net income attributable to Global Payments	$	327,842	$	614,317	$	376,838	$	407,899



Cash and cash equivalents	$	7,540
Property and equipment	5,838
Identified intangible assets	188,294
Other assets	22,275
Deferred income liabilities	(47,610		)
Other liabilities	(31,350		)
Total identifiable net assets	144,987
Goodwill	265,214
Total purchase consideration	$	410,201



Cash and cash equivalents	$	7,657
Property and equipment	5,672
Identified intangible assets	419,500
Other assets	11,785
Deferred income tax liabilities	(94,044		)
Other liabilities	(15,647		)
Total identifiable net assets	334,923
Goodwill	371,962
Total purchase consideration	$	706,885



	Three Months Ended September 30, 2019
	North America		Europe		Asia-Pacific		TSYS		Total

	(in thousands)

Direct:
Relationship-led	$	310,389	$	114,562	$	29,829	$	—	$	454,780
Technology-enabled	369,147		50,388		28,851		—		448,386
	679,536		164,950		58,680		—		903,166
Wholesale	55,305		—		—		—		55,305
	734,841		164,950		58,680		—		958,471
TSYS	—		—		—		147,470		147,470
	$	734,841	$	164,950	$	58,680	$	147,470	$	1,105,941



	Three Months Ended September 30, 2018
	North America		Europe		Asia-Pacific		TSYS		Total

	(in thousands)

Direct:
Relationship-led	$	254,593	$	105,468	$	33,612	$	—	$	393,673
Technology-enabled	317,206		52,116		22,759		—		392,081
	571,799		157,584		56,371		—		785,754
Wholesale	71,916		—		—		—		71,916
	643,715		157,584		56,371		—		857,670
TSYS	—		—		—		—		—
	$	643,715	$	157,584	$	56,371	$	—	$	857,670



	Nine Months Ended September 30, 2018
	North America		Europe		Asia-Pacific		TSYS		Total

	(in thousands)

Direct:
Relationship-led	$	725,874	$	300,642	$	101,225	$	—	$	1,127,741
Technology-enabled	896,982		155,850		68,549		—		1,121,381
	1,622,856		456,492		169,774		—		2,249,122
Wholesale	236,689		—		—		—		236,689
	1,859,545		456,492		169,774		—		2,485,811
TSYS	—		—		—		—		—
	$	1,859,545	$	456,492	$	169,774	$	—	$	2,485,811



Year ending December 31,
Remainder of 2019	$	228,002
2020	746,107
2021	608,080
2022	435,065
2023-2029	526,047
Total	$	2,543,301


Year ending December 31,

2020	$	251,524
2021	879,620
2022	688,039
2023	479,540
2024	308,718
2025	225,624
2026 and thereafter	456,896
Total	$	3,289,960



	Balance Sheet Location	September 30, 2019			January 1, 2019

		(in thousands)

Assets:
Operating lease right-of-use assets:
Real estate	Other noncurrent assets	$	368,816		$	231,720
Computer equipment	Other noncurrent assets	85,961			—
Other	Other noncurrent assets	1,215			4,259
Total operating lease right-of-use-assets		455,992			235,979

Finance lease right-of-use assets:
Computer equipment	Property and equipment, net	$	22,020		$	—
Other	Property and equipment, net	4,702			—
		26,722			—
Less accumulated depreciation:
Computer equipment	Property and equipment, net	(470		)	—
Other	Property and equipment, net	(17		)	—
Total accumulated depreciation		(487		)	—
Total finance lease right-of-use assets		26,235			—
Total right-of-use assets⁽¹⁾		$	482,227		$	235,979

Liabilities:
Operating lease liabilities (current)	Accounts payable and accrued liabilities	$	88,280		$	37,339
Operating lease liabilities (noncurrent)	Other noncurrent liabilities	413,111			236,697
Finance lease liabilities (current)	Current portion of long-term debt	6,414			—
Finance lease liabilities (noncurrent)	Long-term debt	27,852			—
Total lease liabilities		$	535,657		$	274,036



	Operating Leases			Finance Leases

	(in thousands)

Year ending December 31,
Remainder of 2019	$	22,197		$	1,781
2020	106,212			7,328
2021	97,330			7,100
2022	86,099			7,066
2023	57,251			6,674
2024	47,250			6,597
2025 and thereafter	180,794			273
Total lease payments⁽¹⁾	597,133			36,819
Imputed interest	(95,742		)	(2,553		)
Total lease liabilities	$	501,391		$	34,266



Year ending December 31:
2019	$	50,095
2020	47,700
2021	40,035
2022	37,055
2023	33,298
2024 and thereafter	225,225
Total future minimum payments⁽¹⁾	$	433,408


Year ending December 31,

2020	$	20,474
2021	801,167
2022	58,403
2023	1,300,000
2024	1,750,000
2025	1,000,000
2026 and thereafter	4,200,000
Total	$	9,130,044



Year ending December 31,
Remainder of 2019	$	11,536
2020	22,953
2021	754,906
2022	50,038
2023	1,300,000
2024	2,533,000
2025 and thereafter	4,200,000
Total	$	8,872,433


	Shares	Weighted-Average Grant-Date Fair Value

	(in thousands)

Unvested at December 31, 2019	1,844	$149.96
Granted	601	185.71
Vested	(652)	119.62
Forfeited	(51)	169.02
Unvested at September 30, 2020	1,742	$173.10


	Options	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value

	(in thousands)		(years)	(in millions)

Outstanding at December 31, 2019	1,755	$74.06	6.5	$190.3
Granted	124	200.42
Forfeited	(2)	113.48
Exercised	(506)	60.18
Outstanding at September 30, 2020	1,371	$90.64	6.4	$122.0

Options vested and exercisable at September 30, 2020	974	$69.50	5.6	$105.3


	Foreign Currency Translation Gains (Losses)		Unrealized Gains (Losses) on Hedging Activities		Other		Accumulated Other Comprehensive Loss

	(in thousands)

Balance at June 30, 2020	$	(361,133)	$	(98,903)	$	890	$	(459,146)
Other comprehensive income (loss)	102,058		8,715		(3,531)		107,242
Balance at September 30, 2020	$	(259,075)	$	(90,188)	$	(2,641)	$	(351,904)

Balance at June 30, 2019	$	(289,194)	$	(47,313)	$	(3,399)	$	(339,906)
Other comprehensive (loss) income	(58,415)		(29,783)		37		(88,161)
Balance at September 30, 2019	$	(347,609)	$	(77,096)	$	(3,362)	$	(428,067)



	Foreign Currency Translation			Unrealized Gains (Losses) on Hedging Activities			Other			Accumulated Other Comprehensive Loss

	(in thousands)

Balance at June 30, 2019	$	(289,194	)	$	(47,313	)	$	(3,399	)	$	(339,906	)
Other comprehensive income (loss)	(58,415		)	(29,783		)	37			(88,161		)
Balance at September 30, 2019	$	(347,609	)	$	(77,096	)	$	(3,362	)	$	(428,067	)

Balance at June 30, 2018	$	(253,372	)	$	14,030		$	(4,287	)	$	(243,629	)
Other comprehensive income (loss)	(26,930		)	72			(58		)	(26,916		)
Balance at September 30, 2018	$	(280,302	)	$	14,102		$	(4,345	)	$	(270,545	)


Year ending December 31:
2020	$	88,681
2021	244,527
2022	173,492
2023	105,742
2024	77,957
2025	99,183
2026 and thereafter	527,427
Total future minimum payments	$	1,317,009


	Three Months Ended September 30, 2020			% of Revenues(1)		Three Months Ended September 30, 2019			% of Revenues(1)		$ Change			% Change

	(dollar amounts in thousands)

Revenues(2):
Merchant Solutions	$	1,243,961		64.9	%	$	1,004,943		90.9	%	$	239,018		23.8	%
Issuer Solutions	487,409			25.4	%	75,628			6.8	%	411,781			NM
Business and Consumer Solutions	204,106			10.6	%	27,896			2.5	%	176,210			NM
Intersegment eliminations	(17,661)			(0.9)	%	(2,526)			(0.2)	%	(15,135)			NM
Consolidated revenues	$	1,917,815		100.0	%	$	1,105,941		100.0	%	$	811,874		73.4	%

Consolidated operating expenses(2):
Cost of service	$	900,921		47.0	%	$	427,720		38.7	%	$	473,201		110.6	%
Selling, general and administrative	726,475			37.9	%	504,184			45.6	%	222,291			44.1	%
Operating expenses	$	1,627,396		84.9	%	$	931,904		84.3	%	$	695,492		74.6	%

Operating income (loss)(2):
Merchant Solutions	$	344,981		18.0	%	$	318,786		28.8	%	$	26,195		8.2	%
Issuer Solutions	70,800			3.7	%	5,885			0.5	%	64,915			NM
Business and Consumer Solutions	31,052			1.6	%	3,365			0.3	%	27,687			NM
Corporate(3)	(156,414)			(8.2)	%	(153,999)			(13.9)	%	(2,415)			(1.6)	%
Operating income	$	290,419		15.1	%	$	174,037		15.7	%	$	116,382		66.9	%

Operating margin(2):
Merchant Solutions	27.7		%			31.7		%			(4.0)		%
Issuer Solutions	14.5		%			NM					NM
Business and Consumer Solutions	15.2		%			NM					NM



	Three Months Ended September 30, 2019			% of Revenues⁽¹⁾		Three Months Ended September 30, 2018			% of Revenues⁽¹⁾		Change			% Change

	(dollar amounts in thousands)

Revenues⁽²⁾:
North America	$	734,841		66.4	%	$	643,715		75.1	%	$	91,126		14.2	%
Europe	164,950			14.9	%	157,584			18.4	%	7,366			4.7	%
Asia-Pacific	58,680			5.3	%	56,371			6.6	%	2,309			4.1	%
TSYS	147,470			13.3	%	—			—	%	147,470			NA
Total revenues	$	1,105,941		100.0	%	$	857,670		100.0	%	$	248,271		28.9	%

Consolidated operating expenses⁽²⁾:
Cost of service	$	427,720		38.7	%	$	265,013		30.9	%	$	162,707		61.4	%
Selling, general and administrative	504,184			45.6	%	369,495			43.1	%	134,689			36.5	%
Operating expenses	$	931,904		84.3	%	$	634,508		74.0	%	$	297,396		46.9	%

Operating income (loss)⁽²⁾:
North America	$	205,728				$	174,012				$	31,716		18.2	%
Europe	91,332					85,781					5,551			6.5	%
Asia-Pacific	24,187					23,692					495			2.1	%
TSYS⁽³⁾	(11,124		)			—					(11,124		)	NA
Corporate⁽³⁾	(136,086		)			(60,323		)			(75,763		)	125.6	%
Operating income	$	174,037		15.7	%	$	223,162		26.0	%	$	(49,125	)	(22.0	)%

Operating margin⁽²⁾:
North America	28.0		%			27.0		%			1.0		%
Europe	55.4		%			54.4		%			1.0		%
Asia-Pacific	41.2		%			42.0		%			(0.8		)%
TSYS	(7.5		)%			NA					NA


	Nine Months Ended September 30, 2020			% of Revenues(1)		Nine Months Ended September 30, 2019			% of Revenues(1)		$ Change			% Change

	(dollar amounts in thousands)

Revenues(2):
Merchant Solutions	$	3,460,785		63.0	%	$	2,812,640		96.2	%	$	648,145		23.0	%
Issuer Solutions	1,461,196			26.6	%	86,122			2.9	%	1,375,074			NM
Business and Consumer Solutions	624,774			11.4	%	27,896			1.0	%	596,878			NM
Intersegment eliminations	(53,390)			(1.0)	%	(2,527)			(0.1)	%	(50,863)			NM
Consolidated revenues	$	5,493,365		100.0	%	$	2,924,131		100.0	%	$	2,569,234		87.9	%

Consolidated operating expenses(2):
Cost of service	$	2,728,532		49.7	%	$	1,035,225		35.4	%	$	1,693,307		163.6	%
Selling, general and administrative	2,122,862			38.6	%	1,293,651			44.2	%	829,211			64.1	%
Operating expenses	$	4,851,394		88.3	%	$	2,328,876		79.6	%	$	2,522,518		108.3	%

Operating income (loss)(2):
Merchant Solutions	$	824,212		15.0	%	$	840,326		15.3	%	$	(16,114)		(1.9)	%
Issuer Solutions	188,131			3.4	%	12,920			0.2	%	175,211			NM
Business and Consumer Solutions	110,358			2.0	%	3,365			0.1	%	106,993			NM
Corporate(3)	(480,730)			(8.8)	%	(261,356)			(4.8)	%	(219,374)			(83.9)	%
Operating income	$	641,971		11.7	%	$	595,255		20.4	%	$	46,716		7.8	%

Operating margin(2):
Merchant Solutions	23.8		%			29.9		%			(6.1)		%
Issuer Solutions	12.9		%			NM					NM
Business and Consumer Solutions	17.7		%			NM					NM



Period	Total Number of Shares Purchased ⁽¹⁾	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs ⁽²⁾
					(in millions)
July 2019	46,869	$	171.40	—	$	568.0
August 2019	1,437	165.63		—	568.0
September 2019	131,243	162.39		—	568.0
Total	179,549	$	164.77	—	$	568.0


Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2)
					(in millions)
July 1-31, 2020	4,547	$	169.51	—	$	880.0
August 1-31, 2020	872	175.55		—	880.0
September 1-30, 2020	1,061	172.50		—	880.0
Total	6,480	$	170.81	—	$	880.0



~~2.1~~3.1			Agreement and Plan of Merger by and between Total System Services, Inc. and Global Payments Inc., dated as of May 27, 2019, incorporated by reference to Exhibit 2.1 to Global Payment Inc.'s Current Report on Form 8-K filed on May 31, 2019. ++
~~3.1~~	Third Amended and Restated Articles of Incorporation of Global Payments Inc., incorporated by reference to Exhibit 4.1 to Global Payment Inc.’s Post-Effective Amendment No. 1 on Form S-8 to the Registration Statement on Form S-4 filed on September 18, 2019.
3.2			~~Ninth~~Articles of Amendment to the Third Amended and Restated ~~Bylaws~~Articles of Incorporation of Global ~~Payment's~~Payments Inc., incorporated by reference to Exhibit ~~4.2 to Global Payment Inc.’s Post-Effective Amendment No. 1 on Form S-8 to the Registration Statement on Form S-4 filed on September 18, 2019.~~
~~4.1~~	~~Stockholders Agreement, dated August 31, 2017, by and among Global Payments Inc. and the stockholders party thereto, incorporated by reference to Exhibit 10.1~~3.1 to Global Payments Inc.'s Current Report on Form 8-K filed on ~~September 6, 2017.~~May 1, 2020.
~~4.2~~3.3			~~Indenture, dated as~~Tenth Amended and Restated Bylaws of ~~August 14, 2019, between~~ Global Payments Inc. ~~and U.S. Bank National Association, as trustee,~~, incorporated by reference to Exhibit ~~4.1~~3.2 to Global ~~Payments~~Payment Inc.’s Current Report on Form 8-K filed on ~~August 14, 2019.~~May 1, 2020.
~~4.3~~		Supplemental Indenture No. 1, dated as of August 14, 2019, between Global Payments Inc. and U.S. Bank National Association, as trustee, incorporated by reference to Exhibit 4.2 Global Payments Inc.’s Current Report on Form 8-K filed on August 14, 2019.31.1*
~~4.4~~	~~Form of Notes (included in Exhibit 4.2).~~
~~4.5~~	~~Senior Indenture, dated March 17, 2016, between TSYS and Regions Bank, as trustee, incorporated by reference to Exhibit 4.1 of TSYS's Current Report on Form 8-K filed on March 17, 2016.~~
~~4.6~~	Supplemental Indenture No. 1, dated as of September 17, 2019, among Total System Services, Inc., Global Payments Inc. and Regions Bank, incorporated by reference to Exhibit 4.1 to Global Payments Inc.’s Current Report on Form 8-K filed on September 20, 2019.
~~4.7~~	~~Form of 3.800% Senior Note due 2021, incorporated by reference to Exhibit 4.2 of TSYS's Current Report on Form 8-K filed on March 17, 2016.~~
~~4.8~~	~~Form of 4.000% Senior Note due 2023, incorporated by reference to Exhibit 4.1 of TSYS's Current Report on Form 8-K filed on May 11, 2018.~~
~~4.9~~	~~Form of 4.800% Senior Note due 2026, incorporated by reference to Exhibit 4.3 of TSYS's Current Report on Form 8-K filed on March 17, 2016.~~
~~4.10~~	Indenture, dated as of May 22, 2013, between TSYS and Wells Fargo Bank, National Association, as trustee, incorporated by reference to Exhibit 4.1 of TSYS's Current Report on Form 8-K filed on May 22, 2013.
~~4.11~~	Supplemental Indenture No. 1, dated as of September 17, 2019, among Total System Services, Inc., Global Payments Inc. and Wells Fargo Bank, National Association, incorporated by reference to Exhibit 4.2 to Global Payments Inc.’s Current Report on Form 8-K filed on September 20, 2019.
~~4.12~~	~~Form of 3.750% Senior Note due 2023, incorporated by reference to Exhibit 4.3 of TSYS's Current Report on Form 8-K filed on May 22, 2013.~~
10.1*	~~Amended and Restated Employment Agreement, dated as of September 20, 2019, by and between Global Payments Inc. and Jeffrey S. Sloan.~~
10.2*	~~Amended and Restated Employment Agreement, dated as of September 20, 2019, by and between Global Payments Inc. and Cameron M. Bready.~~
10.3*	~~Amended and Restated Employment Agreement, dated as of September 20, 2019, by and between Global Payments Inc. and Guido F. Sacchi.~~
10.4*	~~Amended and Restated Employment Agreement, dated as of September 20, 2019, by and between Global Payments Inc. and David L. Green.~~
10.5*	~~Employment Agreement, dated as of September 20, 2019, by and between Global Payments Inc. and Paul M. Todd.~~
10.6*	~~Form of Synergy Performance Share Award Agreement.~~
10.7*	~~Global Payments Inc. Sixth Amended and Restated Non-Employee Director Compensation Plan, dated October 24, 2019.~~
~~10.8~~	~~Technical Amendment to the Credit Agreement, dated as of May 31, 2019, between Global Payments Inc. and Bank of America, N.A., as administrative agent.~~
~~10.9~~	~~Total System Services, Inc. 2017 Omnibus Plan incorporated by reference to Exhibit 10.1 to TSYS’ Current Report on Form 8-K filed on April 28, 2017.~~



~~10.10~~	~~Total System Services, Inc. 2012 Omnibus Plan, incorporated by reference to Exhibit 10.1 to TSYS’ Current Report on Form 8-K filed on May 4, 2012.~~
~~10.11~~	~~Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.1 to TSYS’ Current Report on Form 8-K filed on April 25, 2007.~~
~~10.12~~	Amended and Restated NetSpend Holdings, Inc. 2004 Equity Incentive Plan for Options and Restricted Shares Assumed by Total System Services, Inc., incorporated by reference to Exhibit 99.1 to TSYS’ Registration Statement on Form S-8 filed on July 1, 2013.
~~10.13~~	Term Loan Credit Agreement, dated as of July 9, 2019, among Global Payments Inc., as Borrower, Bank of America, N.A. as Administrative Agent, and the other Lenders party thereto, incorporated by reference to Exhibit 10.1 to Global Payments Inc.'s Current Report on Form 8-K filed on July 16, 2019.
~~10.14~~	Credit Agreement, dated as of July 9, 2019, among Global Payments Inc., as Borrower, the other Borrowers party thereto, Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer and the other Lenders and L/C Issuers party thereto, incorporated by reference to Exhibit 10.2 to Global Payments Inc.'s Current Report on Form 8-K filed on July 16, 2019.
31.1*	Certification of the Principal Executive Officer pursuant to Exchange Act Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of ~~2002.~~2002.
31.2*		Certification of the Principal Financial Officer pursuant to Exchange Act Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of the Principal Executive Officer and the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*		The following financial information from the Quarterly Report on Form 10-Q for the quarter ended September 30, ~~2019,~~2020, formatted in Inline XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) the Unaudited Consolidated Statements of Income; (ii) the Unaudited Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Unaudited Consolidated Statements of Cash Flows; (v) the Unaudited Consolidated Statements of Changes in Equity; and (vi) the Notes to Unaudited Consolidated Financial Statements. The instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
104*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).