Document and Entity Information
Document and Entity Information | 12 Months Ended |
May. 31, 2015 | |
Document And Entity Information [Abstract] | |
Current Fiscal Year End Date | --05-31 |
Entity Registrant Name | GLOBAL PAYMENTS INC |
Entity Central Index Key | 1,123,360 |
Document Type | 8-K |
Document Period End Date | May 31, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Income Statement [Abstract] | |||
Revenues | $ 2,773,718 | $ 2,554,236 | $ 2,375,923 |
Operating expenses: | |||
Cost of service | 1,022,107 | 952,225 | 862,075 |
Selling, general and administrative | 1,295,014 | 1,203,512 | 1,119,860 |
Processing system intrusion | 0 | (7,000) | 36,775 |
Total costs and expenses | 2,317,121 | 2,148,737 | 2,018,710 |
Operating income | 456,597 | 405,499 | 357,213 |
Other income (expense): | |||
Interest and other income | 4,949 | 13,663 | 10,353 |
Interest and other expense | (44,436) | (41,812) | (33,282) |
Total nonoperating income (expense) | (39,487) | (28,149) | (22,929) |
Income before income taxes | 417,110 | 377,350 | 334,284 |
Provision for income taxes | (107,995) | (107,398) | (95,571) |
Net income | 309,115 | 269,952 | 238,713 |
Less: Net income attributable to noncontrolling interests, net of income tax | (31,075) | (24,666) | (22,588) |
Net income attributable to Global Payments | $ 278,040 | $ 245,286 | $ 216,125 |
Basic earnings per share (in dollars per share) | $ 2.07 | $ 1.70 | $ 1.39 |
Diluted earnings per share (in dollars per share) | $ 2.06 | $ 1.69 | $ 1.38 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 309,115 | $ 269,952 | $ 238,713 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (220,641) | 17,034 | 20,629 |
Income tax benefit related to foreign currency translation adjustments | 12,152 | 3,133 | 582 |
Unrealized losses on hedging activities | (10,116) | 0 | 0 |
Reclassification of losses on hedging activities to interest expense | 3,958 | 0 | 0 |
Income tax benefit related to hedging activities | 2,284 | 0 | 0 |
Changes in unrecognized pension benefit costs | (691) | 236 | 2,302 |
Income tax benefit (expense) related to changes in unrecognized pension benefit costs | 241 | (63) | (785) |
Other comprehensive (loss) income, net of income tax | (212,813) | 20,340 | 22,728 |
Comprehensive income | 96,302 | 290,292 | 261,441 |
Less: comprehensive income attributable to noncontrolling interests | (2,478) | (31,720) | (30,378) |
Comprehensive income attributable to Global Payments | $ 93,824 | $ 258,572 | $ 231,063 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May. 31, 2015 | May. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 650,739 | $ 581,872 |
Accounts receivable, net of allowances for doubtful accounts of $468 and $401, respectively | 202,390 | 214,574 |
Claims receivable, net | 548 | 809 |
Settlement processing assets | 2,394,822 | 780,917 |
Inventory | 5,228 | 6,636 |
Prepaid expenses and other current assets | 36,188 | 44,934 |
Total current assets | 3,289,915 | 1,629,742 |
Goodwill | 1,491,833 | 1,337,285 |
Other intangible assets, net | 560,136 | 535,173 |
Property and equipment, net | 374,143 | 369,753 |
Deferred income taxes | 30,428 | 101,940 |
Other | 32,846 | 28,634 |
Total assets | 5,779,301 | 4,002,527 |
Current liabilities: | ||
Lines of credit | 592,629 | 440,128 |
Current portion of long-term debt | 61,784 | 16,938 |
Accounts payable and accrued liabilities | 312,647 | 290,030 |
Settlement processing obligations | 2,033,900 | 451,317 |
Income taxes payable | 14,228 | 12,390 |
Total current liabilities | 3,015,188 | 1,210,803 |
Long-term debt | 1,678,283 | 1,373,569 |
Deferred income taxes | 202,855 | 196,224 |
Other noncurrent liabilities | 19,422 | 89,132 |
Total liabilities | $ 4,915,748 | $ 2,869,728 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, no par value; 5,000,000 shares authorized and none issued | $ 0 | $ 0 |
Common stock, no par value; 200,000,000 shares authorized; 130,557,676 issued and outstanding at May 31, 2015 and 137,691,286 issued and outstanding at May 31, 2014 | 0 | 0 |
Paid-in capital | 148,742 | 183,023 |
Retained earnings | 795,226 | 815,980 |
Accumulated other comprehensive loss | (185,992) | (1,776) |
Total Global Payments shareholders’ equity | 757,976 | 997,227 |
Noncontrolling interests | 105,577 | 135,572 |
Total equity | 863,553 | 1,132,799 |
Total liabilities and equity | $ 5,779,301 | $ 4,002,527 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | May. 31, 2015 | May. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances for doubtful accounts | $ 468 | $ 401 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 130,557,676 | 137,691,286 |
Common stock, shares outstanding (shares) | 130,557,676 | 137,691,286 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 309,115 | $ 269,952 | $ 238,713 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 64,918 | 60,124 | 55,023 |
Amortization of acquired intangibles | 72,587 | 61,945 | 56,765 |
Share-based compensation expense | 21,056 | 29,793 | 18,427 |
Provision for operating losses and bad debts | 14,506 | 20,574 | 21,659 |
Deferred income taxes | 81,079 | (1,799) | 33,112 |
Other, net | 3,073 | (1,484) | (4,878) |
Changes in operating assets and liabilities, net of the effects of acquisitions: | |||
Accounts receivable | 1,248 | (18,539) | (5,458) |
Claims receivable | (9,317) | (11,569) | (11,858) |
Settlement processing assets and obligations, net | (78,794) | (241,431) | (104,007) |
Inventory | 127 | 4,793 | (1,187) |
Prepaid expenses and other assets | 14,616 | 18,995 | (22,978) |
Accounts payable and other liabilities | (72,802) | 9,224 | (39,374) |
Income taxes payable | 3,289 | (6,480) | 6,587 |
Net cash provided by operating activities | 424,701 | 194,098 | 240,546 |
Cash flows from investing activities: | |||
Business, intangible and other asset acquisitions, net of cash acquired | (359,187) | (426,524) | (434,016) |
Capital expenditures | (92,550) | (81,411) | (98,590) |
Principal collections on financing receivables | 219 | 2,658 | 2,812 |
Net proceeds from sales of investments and business | 10,597 | 3,607 | 1,227 |
Net cash used in investing activities | (440,921) | (501,670) | (528,567) |
Cash flows from financing activities: | |||
Net borrowings (payments) on short-term lines of credit | 198,884 | 252,667 | (27,930) |
Proceeds from issuance of long-term debt | 2,496,842 | 2,690,000 | 1,135,327 |
Principal repayments of long-term debt | (2,148,907) | (2,260,597) | (482,349) |
Acquisition of redeemable noncontrolling interest | 0 | 0 | (242,000) |
Payment of debt issuance costs | 0 | (5,961) | (3,987) |
Repurchase of common stock | (372,387) | (447,307) | (175,297) |
Proceeds from stock issued under share-based compensation plans | 22,550 | 31,727 | 10,543 |
Common stock repurchased - share-based compensation plans | (15,690) | (5,681) | (10,244) |
Tax benefit from share-based compensation plans | 5,176 | 6,475 | 1,863 |
Distributions to noncontrolling interests | (39,753) | (36,670) | (16,206) |
Dividends paid | (5,340) | (5,757) | (6,198) |
Net cash provided by financing activities | 141,375 | 218,896 | 183,522 |
Effect of exchange rate changes on cash | (56,288) | (9,922) | 3,694 |
Increase (decrease) in cash and cash equivalents | 68,867 | (98,598) | (100,805) |
Cash and cash equivalents, beginning of the period | 581,872 | 680,470 | 781,275 |
Cash and cash equivalents, end of the period | $ 650,739 | $ 581,872 | $ 680,470 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Number of Shares | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Global Payments Shareholders’ Equity | Noncontrolling Interests |
Balance, beginning balance (in shares) at May. 31, 2012 | 157,102,000 | ||||||
Balance, beginning balance at May. 31, 2012 | $ 1,300,921 | $ 358,728 | $ 843,456 | $ (30,000) | $ 1,172,184 | $ 128,737 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 236,899 | 216,125 | 216,125 | 20,774 | |||
Other comprehensive loss, net of tax | 22,728 | 14,938 | |||||
Other comprehensive loss, net of tax, excluding redeemable noncontrolling interest | 22,155 | 14,938 | 14,938 | 7,217 | |||
Stock issued under share-based compensation plans (in shares) | 1,770,000 | ||||||
Stock issued under share-based compensation plans | 10,543 | 10,543 | 10,543 | ||||
Common stock repurchased - share-based compensation plans (in shares) | (670,000) | ||||||
Common stock repurchased - share-based compensation plans | (10,244) | (10,244) | (10,244) | ||||
Tax benefit from share-based compensation, net | 850 | 850 | 850 | ||||
Share-based compensation expense | 18,427 | 18,427 | 18,427 | ||||
Distributions to noncontrolling interests | (16,206) | 0 | (16,206) | ||||
Redeemable noncontrolling interests valuation adjustment | $ 817 | 817 | 817 | ||||
Repurchase of common stock (in shares) | (5,000,000) | (7,350,000) | |||||
Repurchase of common stock | $ (175,349) | (79,900) | (95,449) | (175,349) | |||
Purchase of redeemable noncontrolling interest | (96,008) | (96,008) | (96,008) | ||||
Dividends paid ($0.08 per share) | (6,198) | (6,198) | (6,198) | ||||
Balance, ending balance (in shares) at May. 31, 2013 | 150,852,000 | ||||||
Balance, ending balance at May. 31, 2013 | 1,286,607 | 202,396 | 958,751 | (15,062) | 1,146,085 | 140,522 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 269,952 | 245,286 | 245,286 | 24,666 | |||
Other comprehensive loss, net of tax | 20,340 | 13,286 | 13,286 | 7,054 | |||
Stock issued under share-based compensation plans (in shares) | 3,802,000 | ||||||
Stock issued under share-based compensation plans | 31,727 | 31,727 | 31,727 | ||||
Common stock repurchased - share-based compensation plans (in shares) | (1,288,000) | ||||||
Common stock repurchased - share-based compensation plans | (14,498) | (14,498) | (14,498) | ||||
Tax benefit from share-based compensation, net | 6,351 | 6,351 | 6,351 | ||||
Share-based compensation expense | 29,793 | 29,793 | 29,793 | ||||
Distributions to noncontrolling interests | (36,670) | (36,670) | |||||
Repurchase of common stock (in shares) | (15,674,000) | ||||||
Repurchase of common stock | (455,046) | (72,746) | (382,300) | (455,046) | |||
Dividends paid ($0.08 per share) | (5,757) | (5,757) | (5,757) | ||||
Balance, ending balance (in shares) at May. 31, 2014 | 137,692,000 | ||||||
Balance, ending balance at May. 31, 2014 | 1,132,799 | 183,023 | 815,980 | (1,776) | 997,227 | 135,572 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 309,115 | 278,040 | 278,040 | 31,075 | |||
Other comprehensive loss, net of tax | (212,813) | (184,216) | (184,216) | (28,597) | |||
Stock issued under share-based compensation plans (in shares) | 2,516,000 | ||||||
Stock issued under share-based compensation plans | 22,550 | 22,550 | 22,550 | ||||
Common stock repurchased - share-based compensation plans (in shares) | (648,000) | ||||||
Common stock repurchased - share-based compensation plans | (7,435) | (7,435) | (7,435) | ||||
Tax benefit from share-based compensation, net | 5,176 | 5,176 | 5,176 | ||||
Share-based compensation expense | 21,056 | 21,056 | 21,056 | ||||
Distributions to noncontrolling interests | (39,753) | (39,753) | |||||
Noncontrolling interest from business combination | $ 7,280 | 7,280 | |||||
Repurchase of common stock (in shares) | (1,955,730) | (9,002,000) | |||||
Repurchase of common stock | $ (369,082) | (75,628) | (293,454) | (369,082) | |||
Dividends paid ($0.08 per share) | (5,340) | (5,340) | (5,340) | ||||
Balance, ending balance (in shares) at May. 31, 2015 | 130,558,000 | ||||||
Balance, ending balance at May. 31, 2015 | $ 863,553 | $ 148,742 | $ 795,226 | $ (185,992) | $ 757,976 | $ 105,577 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share (in dollars per share) | $ 0.04 | $ 0.04 | $ 0.04 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
May. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business, consolidation and presentation — We are a leading worldwide provider of payment technology services delivering innovative solutions to our customers. Our partnerships, technologies and employee expertise enable us to provide a broad range of services that allow our customers to accept various payment types. We distribute our services across a variety of channels to merchants and partners in 29 countries throughout North America, Europe, the Asia-Pacific region and Brazil. We provide payment and digital commerce solutions and operate in three reportable segments: North America, Europe and Asia-Pacific. Global Payments Inc. and its consolidated subsidiaries are referred to collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise. We were incorporated in Georgia as Global Payments Inc. in 2000 and spun-off from our former parent company in 2001 . Including our time as part of our former parent company, we have been in the payments business since 1967 . These 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 consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and present our financial position, results of operations, and cash flows. Use of estimates — 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. Revenue recognition — Our three segments primarily provide payment solutions for credit cards, debit cards, electronic payments and check-related services. Revenue is recognized when such services are performed. Revenue for services provided directly to merchants is recorded net of interchange fees charged by card issuing banks. Our primary business model provides payment services directly to merchants as our customers. We also provide similar services indirectly through financial institutions and a limited number of independent sales organizations ("ISOs"). The majority of merchant services revenue is generated on services priced as a percentage of transaction value or a specified fee per transaction, depending on card type. We also charge other fees based on specific services that are unrelated to the number of transactions or the transaction value. Revenue from credit cards and signature debit cards is generally based on a percentage of transaction value along with other related fees, while revenue from PIN-based debit cards is typically based on a fee per transaction. Cash and cash equivalents — Cash and cash equivalents include cash on hand and all liquid investments with an initial maturity of three months or less when purchased. Cash and cash equivalents include certain funds collected from our merchants that serve as collateral to minimize contingent liabilities associated with any losses that may occur under the merchant agreement ("Merchant Reserves"). We record a corresponding liability in settlement processing assets and settlement processing obligations in our consolidated balance sheet. While this cash is not restricted in its use, we believe that designating this cash as Merchant Reserves strengthens our fiduciary standing with banks that sponsor us and is in accordance with guidelines set by the card networks. As of May 31, 2015 and 2014 , our cash and cash equivalents included $180.2 million and $124.7 million , respectively, related to Merchant Reserves. Certain banks that serve as our Sponsor under the sponsorship model hold Merchant Reserves on our behalf. In these instances, neither the Merchant Reserve cash nor the corresponding liability appears on our consolidated balance sheet; however, we have access to the collateral in the event that we incur a merchant loss. During the year ended May 31, 2014 , we transferred a significant amount of merchant reserve cash to one of our member sponsors to whom we transferred a substantial portion of our processing volume. Our cash and cash equivalents include settlement-related cash balances. Settlement-related cash balances represent surplus funds that we hold when the incoming amount from the card networks precedes the funding obligation to the merchant. Settlement-related cash balances are not restricted; however, these funds are generally paid out in satisfaction of settlement processing obligations the following day. See "Note 2 - Settlement Processing Assets and Obligations" and discussion below for further information. Inventory — Inventory, which includes electronic point of sale terminals, automated teller machines ("ATMs"), and related peripheral equipment, is stated at the lower of cost or fair value. Cost is determined using the average-cost method. Settlement processing assets and obligations — Settlement processing assets and obligations represent intermediary balances arising in our settlement process for direct merchants. In accordance with Accounting Standards Codification ("ASC") Subtopic 210-20, Offsetting , we apply offsetting to our settlement processing assets and obligations where legal right of offset exists. See "Note 2 - Settlement Processing Assets and Obligations" for further information . Reserve for operating losses — Our merchant customers are liable for any charges or losses that occur under the merchant agreement. We experience losses in our card processing services when we are unable to collect amounts from merchant customers for any charges properly reversed by the card issuing banks. When we are not able to collect these amounts from the merchants due to merchant fraud, insolvency, bankruptcy or any other reason, we may be liable for the reversed charges. We have historically experienced losses due to merchant defaults. We require cash deposits or Merchant Reserves, guarantees, letters of credit and other types of collateral from certain merchants to minimize any such contingent liability, and we also utilize a number of systems and procedures to manage merchant risk. We experience check guarantee losses when we are unable to collect the full amount of a guaranteed check from the checkwriter. We refer to both merchant credit losses and check guarantee losses collectively as "operating losses." We record reserves for our estimated liability for operating losses. This estimate of losses is comprised of estimated known losses and estimated incurred but not reported losses. Estimated known losses arise from specific instances of, for example, merchant bankruptcies, closures or fraud of which we are aware at the balance sheet date, but for which the ultimate amount of associated loss will not be determined until after the balance sheet date. Estimated known loss accruals are recorded when it is probable that we have incurred a loss and the loss is reasonably estimable. Estimated known losses are calculated at the merchant level based on chargebacks received to date, processed volume, and historical chargeback ratios. The estimate is reduced for any collateral that we hold. Accruals for estimated known losses are evaluated periodically and adjusted as appropriate based on actual loss experience. Incurred but not reported losses result from transactions that we process before the balance sheet date for which we have not yet received chargeback notification. We estimate incurred but not reported losses by applying historical loss ratios to our direct merchant credit card and signature debit card sales volumes processed, or processed volume. As of May 31, 2015 and 2014 , the reserve for operating losses from merchant card processing services was $1.3 million and $1.7 million , respectively, and was included in settlement processing obligations in the consolidated balance sheets. For the years ended May 31, 2015 , 2014 and 2013 , the provision for merchant losses was $4.9 million , $8.7 million and $9.5 million , respectively, and was included in cost of service in the consolidated statements of income. In our check guarantee service offering, we charge our merchants a percentage of the gross amount of the check and guarantee payment of the check to the merchant in the event the check is not honored by the checkwriter's bank. We have the right to collect the full amount of the check from the checkwriter, but have not historically always recovered 100 % of the guaranteed checks. Our check guarantee loss reserve is comprised of estimated losses on returned checks and estimated incurred but not reported losses. We estimate the loss on returned checks by applying historical collection rates to our claims receivable balance. We estimate incurred but not reported losses by applying historical loss ratios to the face value of our guaranteed checks. As of May 31, 2015 and 2014 , we had a check guarantee loss reserve of $2.7 million and $3.0 million , respectively, which is included as a valuation allowance against claims receivable in the consolidated balance sheets. For the years ended May 31, 2015 , 2014 and 2013 , we recorded related expenses of $9.6 million , $11.9 million and $11.7 million , respectively, which were included in cost of service in the consolidated statements of income. The estimated check returns and recovery amounts are subject to the risk that actual amounts returned and recovered in the future may differ significantly from estimates used in calculating the receivable valuation allowance. As the potential for merchants’ failure to settle individual reversed charges from consumers in our merchant card processing offering and the timing of individual checks clearing the payors’ banks in our check guarantee offering are not predictable, it is not practicable to calculate the maximum amounts for which we could be liable under the guarantees issued under the merchant card processing and check guarantee service offerings. It is also not practicable to estimate the extent to which merchant collateral or subsequent collections of dishonored checks, respectively, would offset these exposures due to these same uncertainties. Property and equipment — Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method, except for certain technology assets discussed below. Leasehold improvements are amortized over the lesser of the remaining term of the lease and the useful life of the asset. We develop software that is used in providing processing services to customers. Capitalization of internally developed software, primarily associated with operating platforms, occurs when we have completed the preliminary project stage, management authorizes the project, management commits to funding the project, and it is probable the project will be completed and used to perform the function intended. The preliminary project stage consists of the conceptual formulation of alternatives, the evaluation of alternatives, the determination of existence of needed technology and the final selection of alternatives. Costs incurred during the preliminary project stage are expensed as incurred. As of May 31, 2015 , we had placed into service $101.0 million of hardware and software associated with our most recently developed authorization platform. This platform serves as a front-end operating environment for merchant processing and is intended to replace a number of legacy platforms. Depreciation and amortization associated with these costs is calculated based on transactions processed during the period as a percentage of the transactions expected to be processed over the life of the platform. We believe that this method is more representative of the pattern of the benefit to be derived from the platform's use than the straight-line method. We are currently processing transactions on this authorization platform in nine markets in our Asia-Pacific region and for a limited number of U.S. merchants. As these markets represent a small percentage of our overall transactions, depreciation and amortization related to this platform for fiscal 2015 , 2014 and 2013 was not significant. Depreciation and amortization expense will increase as we complete migrations of additional merchants to this authorization platform. Goodwill — We test goodwill for impairment at the reporting unit level annually as of January 1 and more often if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Macroeconomic factors such as general economic conditions, fluctuations in foreign currency exchange rates and other developments in equity and credit markets are monitored for indications that goodwill assigned to one of our reporting units may be impaired. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. The decision of whether to perform a qualitative assessment is made annually by reporting unit. When conducting a qualitative assessment, we consider factors including general macroeconomic conditions, industry and market conditions, cost factors, overall financial performance of our reporting units, events or changes affecting the composition or carrying amount of the net assets of our reporting units, sustained decrease in our share price, and other relevant entity-specific events. If we elect to bypass the qualitative assessment or if we determine, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, a two-step quantitative test is required. In the first step, the reporting unit's carrying amount, including goodwill, is compared to its estimated fair value. If the carrying amount of the reporting unit is greater than its fair value, step two must be performed to measure the amount of the impairment loss, if any. Step two measures the amount of the impairment loss by comparing the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined by assigning the fair value of the reporting unit to all the assets and liabilities of that unit (including unrecognized intangibles) as if the reporting unit had been acquired in a business combination. The excess of the fair value over the amounts assigned to the assets and liabilities of the reporting unit is the implied fair value of the goodwill. The excess, if any, of the carrying amount over the implied fair value of the goodwill would be the amount of the impairment loss. We have six reporting units: North America merchant services, U.K. merchant services, Asia-Pacific merchant services, Central and Eastern Europe merchant services, Russia merchant services and Spain merchant services. As of January 1, 2015 , we elected to perform a qualitative assessment of impairment for each of our reporting units, except Russia merchant services. We determined on the basis of qualitative factors, as described above, that the fair values of the reporting units for which we performed a qualitative assessment were not more likely than not less than their respective carrying amounts. Due to the deterioration of economic conditions in the Russian Federation, we elected to perform a quantitative assessment of impairment for the Russia merchant services reporting unit as of January 1, 2015 . Based on this quantitative assessment, we determined that goodwill of our Russia merchant services reporting unit was not impaired. Our assessment of qualitative factors involves significant judgments about expected future business performance and general market conditions. Significant changes in our assessment of such qualitative factors could affect our assessment of the fair value of one or more of our reporting units and could result in goodwill impairment charges in future periods. Other intangible assets — Other intangible assets primarily represent customer-related intangible assets (such as customer lists and merchant contracts), contract-based intangible assets (such as non-compete agreements, referral agreements and processing rights), acquired technologies, trademarks and trade names associated with acquisitions. Customer-related intangible assets, contract-based intangible assets, acquired technologies, trademarks and trade names are amortized over their estimated useful lives ranging from 2 to 26 years. The useful lives for customer-related intangible assets are determined based primarily on forecasted cash flows, which include estimates for the cash inflows, cash outflows and customer attrition associated with the assets. The useful lives of contract-based intangible assets are equal to the terms of the agreements. The useful lives of acquired technologies are based on our expectations for the remaining useful life of developed technology before it becomes substantially obsolete. The useful lives of amortizable trademarks and trade names are based on our plans to phase out the trademarks and trade names in the applicable markets. Amortization for most of our customer-related intangible assets is calculated using an accelerated method. In determining amortization expense under our accelerated method for any given period, we calculate the expected cash flows for that period that were used in determining the acquisition-date fair value of the asset and divide that amount by the expected total cash flows over the estimated life of the asset. We multiply that percentage by the initial carrying amount of the asset to arrive at the amortization expense for that period. If the cash flow patterns that we experience differ significantly from our initial estimates, we adjust the amortization schedule prospectively. These cash flow patterns are derived using certain assumptions and cost allocations due to a significant number of asset interdependencies that exist in our business. We believe that our accelerated method reflects the pattern of the benefit to be derived from the acquired customer relationships. We use the straight-line method of amortization for our contract-based intangibles, amortizable trademarks and trade names and acquired technologies. Impairment of long-lived assets — We regularly evaluate whether events and circumstances have occurred that indicate the carrying amount of property and equipment and finite-life intangible assets may not be recoverable. When factors indicate that these long-lived assets should be evaluated for possible impairment, we assess the potential impairment by determining whether the carrying amount of such long-lived assets will be recovered through the future undiscounted cash flows expected from use of the asset and its eventual disposition. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market prices or discounted cash flow analysis as applicable. We regularly evaluate whether events and circumstances have occurred that indicate the useful lives of property and equipment and finite-life intangible assets may warrant revision. The carrying amounts of our long-lived assets, including property and equipment and finite-life intangible assets, were not impaired at May 31, 2015 or May 31, 2014 . Income taxes — Deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax laws and rates. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Derivative instruments — We may use interest rate swaps or other derivative instruments to manage a portion of our exposure to the variability in interest rates. Our objective in managing our exposure to fluctuation in interest rates is to better control this element of cost and to mitigate the earnings and cash flow volatility associated with changes in applicable rates. We have established policies and procedures that encompass risk-management philosophy and objectives, guidelines for derivative instrument usage, counterparty credit approval, and the monitoring and reporting of derivative activity. We do not enter into derivative instruments for the purpose of speculation. We formally designate and document instruments at inception that qualify for hedge accounting of underlying exposures. When qualified for hedge accounting, these financial instruments are recognized at fair value in our consolidated balance sheets, and changes in fair value are recognized as a component of other comprehensive income and included in equity. Cash flows resulting from settlements are presented as a component of operating cash flows. We formally assess, both at inception and at least quarterly, whether the financial instruments used in hedging transactions are effective at offsetting changes in cash flows of the related underlying exposure. Fluctuations in the value of these instruments generally are offset by changes in the cash flows of the underlying exposures being hedged. This offset is driven by the high degree of effectiveness between the exposure being hedged and the hedging instrument. We designated our interest rate swap agreements as a cash flow hedge of interest payments on variable rate borrowings. Any ineffective portion of a change in the fair value of a qualifying instrument is immediately recognized in earnings. See "Note 6 - Long-Term Debt and Credit Facilities" for more information about our interest rate swaps. Fair value measurements — Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. GAAP establishes a fair value hierarchy that categorizes the inputs to valuation techniques into three broad levels. Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities. Level 2 inputs are based on other observable market data, such as quoted prices for similar assets and liabilities, and inputs other than quoted prices that are observable such as interest rates and yield curves. Level 3 inputs are developed from unobservable data reflecting our assumptions and include situations where there is little or no market activity for the asset or liability. Fair value of financial instruments — The carrying amounts of financial instruments, including cash and cash equivalents, receivables, lines of credit, accounts payable and accrued liabilities, approximate their fair value given the short-term nature of these items. Our long-term debt includes variable interest rates based on the London Interbank Offered Rate ("LIBOR") , the Federal Funds Effective Rate (as defined in the debt agreements) or the prime rate, plus a margin based on our leverage position. At May 31, 2015 , the carrying amount of our long-term debt approximates fair value, which is calculated using Level 2 inputs. The fair value of our swap agreement was 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, and classified within Level 2 of the valuation hierarchy. See "Note 6 – Long-Term Debt and Credit Facilities" for further information. Foreign currencies — We have significant operations in a number of foreign subsidiaries whose functional currency is the local currency. The assets and liabilities of subsidiaries whose functional currency is a foreign currency are translated at the period-end rate of exchange. Income statement items are translated at the weighted-average rates prevailing during the period. The resulting translation adjustment is recorded as a component of other comprehensive income and is included in equity. Gains and losses on transactions denominated in currencies other than the functional currencies are generally included in determining net income for the period. For the years ended May 31, 2015 , 2014 and 2013 , our transaction gains and losses were insignificant. Transaction gains and losses on intercompany balances of a long-term investment nature are recorded as a component of other comprehensive income and included in equity. Earnings per share — Basic earnings per share is computed by dividing reported net income attributable to Global Payments by the weighted-average number of shares outstanding during the period. Earnings available to common shareholders is the same as reported net income attributable to Global Payments for all periods presented. Diluted earnings per share is computed by dividing net income attributable to Global Payments by the weighted-average number of shares outstanding during the period, including the effect of share-based awards that would have a dilutive effect on earnings per share. All stock options with an exercise price lower than the average market share price of our common stock for the period are assumed to have a dilutive effect on earnings per share. The diluted share base for the year ended May 31, 2013 excludes 0.6 million shares related to stock options that would have an antidilutive effect on the computation of diluted earnings per share. No additional securities were outstanding that could potentially dilute basic earnings per share. The following table sets forth the computation of the diluted weighted-average number of shares outstanding for the years ended May 31, 2015 , 2014 and 2013 : 2015 2014 2013 (in thousands) Basic weighted-average shares outstanding 134,072 144,238 155,534 Plus: Dilutive effect of stock options and other share-based awards 850 1,138 920 Diluted weighted-average shares outstanding 134,922 145,376 156,454 Repurchased shares — We account for the retirement of repurchased shares using the par value method under which we allocate the cost of repurchased and retired shares between paid-in capital and retained earnings. The repurchase price is charged to paid-in capital up to the amount of the original issue proceeds of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. We use a last-in, first-out cost flow assumption to identify the original issue proceeds to the cost of the shares repurchased. Stock split — Our board of directors declared a two-for-one stock split effected in the form of a stock dividend of one additional share of common stock for each outstanding share of common stock (the "Stock Split"). The stock dividend was paid on November 2, 2015 to all shareholders of record as of October 21, 2015. Common share and per share data in the consolidated financial statements and in the notes to our consolidated financial statements for prior periods have been adjusted to reflect the Stock Split, except for authorized common shares which were not affected. New accounting pronouncements — From time-to-time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standards setting bodies that are adopted by us as of the specified effective date. Recently Adopted Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update ("ASU") 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ." To simplify the presentation of deferred income taxes, the amendments in this update require that deferred tax assets and liabilities be classified as noncurrent in a classified balance sheet. We adopted this ASU during the three months ended November 30, 2015 and, as a result, have presented the amounts for deferred income taxes in these financial statements in accordance with this ASU. The adoption of this standard was not material and did not affect our results of operations or cash flows in either the period of adoption or the previous interim or annual periods. In April 2015, the FASB issued ASU 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ." The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. In August 2015, the FASB issued ASU 2015-15, "Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting ," to clarify that an entity may elect to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We adopted both ASUs as of June 1, 2015, and elected to continue to present debt issuance costs related to our revolving credit facilities as an asset. As a result, we have presented debt issuance costs in accordance with these updates. The adoption of this standard was not material and did not affect our results of operations or cash flows in either the period of adoption or the previous interim or annual periods. In January 2015, the FASB issued ASU 2015-01, " Income Statement Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items." The amendments in this update eliminate from GAAP the concept of extraordinary items. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. We adopted ASU 2015-01 as of May 31, 2015. Adoption of ASU 2015-01 had no effect on our consolidated financial statements. In April 2014, the FASB issued ASU 2014-08, " Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." The amendments in ASU 2014-11 change the requirements for reporting discontinued operations in ASC Subtopic 205-20. The amendments change the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The amendments require expanded disclosures for discontinued operations and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. As permitted by the standards, we elected to early adopt the provision of ASU 2014-08 as of June 1, 2014 and have applied the provisions prospectively. Adoption of ASU 2014-08 did not have a material impact on our consolidated financial statements. Recently Issued Pronouncements Not Yet Adopted In April 2015, the FASB issued Accounting Standards Update ("ASU") 2015-05, " Intangibles - Goodwill and Other-Internal -Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement ." The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. The amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for all entities. We are evaluating the impact of ASU 2015-05 on our consolidated financial statements and have not yet adopted the new standard. In May 2014, the FASB issued ASU 2014-09, " Revenue from Contracts with Customers ( |
Settlement Processing Assets an
Settlement Processing Assets and Obligations | 12 Months Ended |
May. 31, 2015 | |
Offsetting [Abstract] | |
Settlement Processing Assets and Obligations | SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS Funds settlement refers to the process of transferring funds for sales and credits between card issuers and merchants. For transactions processed on our systems, we use our internal network to provide funding instructions to financial institutions that in turn fund the merchants. We process funds settlement under two models, a sponsorship model and a direct membership model. Under the sponsorship model, we are designated as a Merchant Service Provider by MasterCard and an Independent Sales Organization by Visa, which means that member clearing banks ("Member") sponsor us and require our adherence to the standards of the payment networks. In certain markets, we have sponsorship or depository and clearing agreements with financial institution sponsors. These agreements allow us to route transactions under the Members' control and identification numbers to clear credit card transactions through MasterCard and Visa. In this model, the standards of the payment networks restrict us from performing funds settlement or accessing merchant settlement funds, and, instead, require that these funds be in the possession of the Member until the merchant is funded. Under the direct membership model, we are members in various payment networks, allowing us to process and fund transactions without third-party sponsorship. In this model, we route and clear transactions directly through the card brand’s network and are not restricted from performing funds settlement. Otherwise, we process these transactions similarly to how we process transactions in the sponsorship model. We are required to adhere to the standards of the payment networks in which we are direct members. We maintain relationships with financial institutions, which may also serve as our Member sponsors for other card brands or in other markets, to assist with funds settlement. Timing differences, interchange fees, Merchant Reserves and exception items cause differences between the amount received from the payment networks and the amount funded to the merchants. These intermediary balances arising in our settlement process for direct merchants are reflected as settlement processing assets and obligations on our consolidated balance sheets. Settlement processing assets and obligations include the components outlined below: • Interchange reimbursement - our receivable from merchants for the portion of the discount fee related to reimbursement of the interchange fee. • Receivable from Members - our receivable from the Members for transactions in which we have advanced funding to the Members to fund merchants in advance of receipt of funding from networks. • Receivable from networks - our receivable from a payment network for transactions processed on behalf of merchants where we are a direct member of that particular network. • Exception items - items such as customer chargeback amounts received from merchants. • Merchant Reserves - reserves held to minimize contingent liabilities associated with losses that may occur under the merchant agreement. • Liability to Members - our liability to the Members for transactions for which funding from the payment network has been received by the Members but merchants have not yet been funded. • Liability to merchants - our liability to merchants for transactions that have been processed but not yet funded where we are a direct member of a particular payment network. • Reserve for operating losses - our allowance for charges or losses that we are not able to collect from the merchants due to merchant fraud, insolvency, bankruptcy or any other merchant-related reason. • Reserves for sales allowances. We apply offsetting to our settlement processing assets and obligations where legal right of offset exists. In the sponsorship model, we apply offsetting by Member because the Member is ultimately responsible for funds settlement. With these Member transactions, we do not have access to the gross proceeds of the receivable from the payment networks and, thus, do not have a direct obligation or any ability to satisfy the payable to fund the merchant. In these situations, we apply offsetting to determine a net position with each Member sponsor. If that net position is an asset, we reflect the net amount in settlement processing assets on our consolidated balance sheet, and we present the individual components in the settlement processing assets table below. If that net position is a liability, we reflect the net amount in settlement processing obligations on our consolidated balance sheet, and we present the individual components in the settlement processing obligations table below. In the direct membership model, offsetting is not applied, and the individual components are presented as an asset or obligation based on the nature of that component. During the year ended May 31, 2015 , we changed from the sponsorship model to a direct membership model in certain of our markets. As a result, for these markets, we have recorded the gross positions of settlement processing assets and obligations at May 31, 2015 in our consolidated balance sheet; whereas these positions were reflected on a net basis in the prior year. As of May 31, 2015 and 2014 , settlement processing assets and obligations consisted of the following: 2015 2014 (in thousands) Settlement processing assets: Interchange reimbursement $ 186,660 $ 217,806 Receivable from Members 294,837 206,322 Receivable from networks 1,919,148 430,763 Exception items 4,920 5,573 Merchant Reserves (10,743 ) (79,547 ) $ 2,394,822 $ 780,917 Settlement processing obligations: Interchange reimbursement $ 68,444 $ 54,459 Liability to Members (628 ) (5,490 ) Liability to merchants (1,931,390 ) (407,651 ) Exception items 5,331 6,313 Merchant Reserves (169,442 ) (96,622 ) Reserve for operating losses (1,286 ) (1,725 ) Reserve for sales allowances (4,929 ) (601 ) $ (2,033,900 ) $ (451,317 ) |
Business and Intangible Asset A
Business and Intangible Asset Acquisitions and Joint Ventures | 12 Months Ended |
May. 31, 2015 | |
Business Combinations [Abstract] | |
Business and Intangible Asset Acquisitions | BUSINESS AND INTANGIBLE ASSET ACQUISITIONS AND JOINT VENTURES In the years ended May 31, 2015 , 2014 , and 2013 , we acquired the following businesses and intangible assets: Date Acquired Percentage Ownership Fiscal 2015 Realex (Republic of Ireland) March 25, 2015 95 % Ezidebit (Australia) October 10, 2014 100 % Fiscal 2014 PayPros (United States) March 4, 2014 100 % Fiscal 2013 Banca Civica (Spain) December 12, 2012 100 % Accelerated Payment Technologies (United States) October 1, 2012 100 % Fiscal 2015 Realex Payments On March 25, 2015 , we acquired approximately 95% of the outstanding shares of Pay and Shop Limited for € 110.2 million in cash ( $118.9 million equivalent as of the acquisition date) funded by borrowings on our revolving credit facility. Pay and Shop Limited, which does business as Realex Payments ("Realex"), is a leading European online payment gateway technology provider based in Dublin, Ireland. This transaction furthers our strategy to provide omni-channel solutions that combine gateway services, payment service provisioning and merchant acquiring across Europe. This transaction was recorded as a business combination. We recorded the assets acquired, liabilities assumed and noncontrolling interest at fair value as of the acquisition date. Due to the timing of this transaction, we have not finalized the valuation of intangible assets acquired and related deferred income taxes. In connection with the acquisition of Realex, we paid a transaction-related tax of $1.2 million . Other acquisition costs were not material. The revenue and earnings of Realex for the year ended May 31, 2015 were not material nor were the historical revenue and earnings of Realex material for the purpose of presenting pro forma information for the current or prior-year periods. The following table summarizes the preliminary fair value of the assets acquired, liabilities assumed and the noncontrolling interest as of the acquisition date (in thousands): Cash $ 4,082 Customer-related intangible assets 16,079 Acquired technology 39,820 Trade name 3,453 Other intangible assets 399 Other assets 6,183 Liabilities (3,860 ) Deferred income tax liabilities (7,216 ) 58,940 Goodwill 67,220 Noncontrolling interest (7,280 ) Total purchase consideration $ 118,880 Goodwill of $ 67.2 million arising from the acquisition was included in the Europe segment and was attributable to expected growth opportunities in Europe and an assembled workforce to support the newly acquired technology. Goodwill associated with this acquisition is not deductible for tax purposes. The customer-related intangible assets have an estimated amortization period of 16 years. The acquired technology has an estimated amortization period of 10 years. The trade name has an estimated amortization period of 7 years. Ezidebit On October 10, 2014 , we completed the acquisition of 100% of the outstanding stock of Ezi Holdings Pty Ltd ("Ezidebit") for AUD 302.6 million in cash ( $266.0 million equivalent as of the acquisition date). This acquisition was funded by a combination of cash on hand and borrowings on our revolving credit facility. Ezidebit is a leading integrated payments company focused on recurring payments verticals in Australia and New Zealand. Ezidebit markets its services through a network of integrated software vendors and direct channels to numerous vertical markets. We acquired Ezidebit to establish a direct distribution channel in Australia and New Zealand and to further enhance our existing integrated solutions offerings. This transaction was recorded as a business combination. We recorded the assets acquired and liabilities assumed at fair value as of the acquisition date. Due to the timing of this transaction, we have not finalized the valuation of deferred income taxes. Acquisition costs associated with this purchase were not material. The revenue and earnings of Ezidebit for the year ended May 31, 2015 were not material nor were the historical revenue and earnings of Ezidebit material for the purpose of presenting pro forma information for the current or prior-year periods. The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 45,826 Customer-related intangible assets 42,721 Acquired technology 27,954 Trade name 2,901 Other assets 4,152 Liabilities (49,797 ) 73,757 Goodwill 192,225 Total purchase consideration $ 265,982 Goodwill of $192.2 million arising from the acquisition was included in the Asia-Pacific segment and was attributable to expected growth opportunities in Australia and New Zealand, as well as growth opportunities and operating synergies in integrated payments in our existing Asia-Pacific and North America markets. Goodwill associated with this acquisition is not deductible for tax purposes. The customer-related intangible assets have an estimated amortization period of 15 years. The acquired technology has an estimated amortization period of 15 years. The trade name has an estimated amortization period of 5 years. Central and Eastern European Venture On July 27, 2015 we announced an agreement with CaixaBank, S.A. ("CaixaBank") and Erste Group Bank AG (“Erste Group”) to form a venture to provide merchant acquiring and payment services in three core Central and Eastern Europe locations: the Czech Republic, the Slovak Republic and Romania. As part of the agreement, Global Payments and CaixaBank will form an entity, of which Global Payments will have a 51 percent majority interest. This newly formed entity will pay € 30 million ( $33 million equivalent as of the agreement date) in cash to acquire a 51 percent majority ownership in the venture with Erste Group, which will contribute its existing merchant acquiring businesses in each of the three countries to the venture and hold a 49 percent interest. The transaction is expected to close in the second half of fiscal 2016 , subject to receipt of regulatory approvals and satisfaction of customary closing conditions. FIS Gaming Business On September 30, 2014 , we entered into an asset purchase agreement with Certegy Check Services, Inc., a wholly-owned subsidiary of Fidelity National Information Services, Inc. ("FIS"), to acquire substantially all of the assets of its gaming business related to licensed gaming operators (the "FIS Gaming Business"). On June 1, 2015 , after the end of fiscal 2015, we completed the acquisition, which includes approximately 260 gaming client locations, for $237.5 million in cash, funded from borrowings on our revolving credit facility and cash on hand. We acquired the FIS Gaming Business to expand our direct distribution and service offerings in the gaming industry. This transaction will be recorded as a business combination, and we will record the assets acquired and liabilities assumed at fair value as of the acquisition date. Due to the timing of this transaction, the initial accounting for the business combination is incomplete because the appraisal of the acquired assets has not yet been received. Acquisition costs associated with this purchase were not material. On September 30, 2014 , we entered into a gaming bureau license agreement and an outsourcing agreement with FIS. Under the license agreement, we acquired a perpetual software license for a gaming bureau application that we believe enhances our casino clients’ credit decision process. The software license is reflected in property and equipment in our consolidated balance sheet at May 31, 2015 . Under the outsourcing agreement, which has a term of 10 years, we have engaged FIS to provide a variety of services for our gaming clients, including: check and ACH verification services, collection services, claims management services, billing services and other gaming bureau services. The outsourcing agreement became effective on June 1, 2015, when the asset purchase agreement closed. Bank of the Philippine Islands On December 17, 2014 , we announced an agreement with Bank of the Philippine Islands ("BPI") to provide merchant acquiring and payment services in the Philippines. We believe this arrangement will enable us to expand our direct distribution in the Philippines, further leverage our technological strengths and provide superior product and service offerings to customers in the Philippines. Under this arrangement, BPI will contribute its existing merchant acquiring business to our subsidiary in the Philippines, Global Payments Asia-Pacific Philippines Incorporated ("GP Philippines"), in return for a 49% ownership interest in GP Philippines and a cash payment of $3.6 million . We will retain a controlling 51% interest in GP Philippines, which is included in our Asia-Pacific segment. The transaction is expected to close late in the first quarter of fiscal 2016 , subject to receipt of regulatory approvals and satisfaction of customary closing conditions. Fiscal 2014 PayPros On March 4, 2014 , we completed the acquisition of 100% of the outstanding stock of Payment Processing, Inc. ("PayPros") for $426.5 million in cash. We funded the acquisition with a combination of cash on hand and borrowings on our Term Loan (as defined in "Note 6 - Long Term Debt and Credit Facilities"). PayPros is a provider of fully-integrated payment solutions for small-to-medium sized merchants in the United States. PayPros delivers its services through a network of technology-based enterprise software partners to vertical markets that are complementary to the markets served by Accelerated Payment Technologies ("APT"), which we acquired in October 2012. We acquired PayPros to expand our direct distribution capabilities in the United States and to further enhance our existing integrated solutions offerings. This transaction was recorded as a business combination. We recorded the assets acquired and liabilities assumed at fair value as of the acquisition date. Acquisition costs associated with this business combination were not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Property and equipment $ 1,680 Customer-related intangible assets 147,500 Contract-based intangible assets 30,200 Acquired technology 10,800 Other assets 3,872 Deferred income tax liabilities (38,478 ) 155,574 Goodwill 270,878 Total purchase consideration $ 426,452 Goodwill of $270.9 million arising from the acquisition was included in the North America segment and was attributable primarily to operating synergies with the services offered and markets served by PayPros. The goodwill associated with the acquisition is not deductible for tax purposes. The customer-related intangible assets and the contract-based intangible assets have estimated amortization periods of 13 years. The acquired technology has an estimated amortization period of 7 years. The amount of revenue and earnings of PayPros since the acquisition date included in the consolidated statement of income for fiscal 2014 was not material. The following pro forma information shows the results of our operations for year ended May 31, 2014 and May 31, 2013 as if the PayPros acquisition had occurred June 1, 2012. The pro forma information is presented for information purposes only and is not necessarily indicative of what would have occurred if the acquisition had been made as of that date. The pro forma information is also not intended to be a projection of future results due to the integration of the acquired business. Year Ended May 31, Unaudited 2014 2014 2013 2013 (Actual) (Pro forma) (Actual) (Pro forma) (in thousands, except per share data) Total revenues $ 2,554,236 $ 2,628,547 $ 2,375,923 $ 2,465,319 Net income attributable to Global Payments $ 245,286 $ 241,272 $ 216,125 $ 207,032 Net income per share attributable to Global Payments, basic $ 1.70 $ 1.68 $ 1.39 $ 1.33 Net income per share attributable to Global Payments, diluted $ 1.69 $ 1.66 $ 1.38 $ 1.33 Comercia Global Payments Brazil Effective September 30, 2013 , CaixaBank, S.A. ("CaixaBank"), which owns 49% of Comercia Global Payments ("Comercia"), our subsidiary in Spain, purchased 50% of Global Payments Brazil for $2.1 million in cash and a commitment to fund the capital needs of the business until such time as its cumulative funding was equal to funding that we provided from inception through the effective date of the transaction. The transaction created a new joint venture which does business as Comercia Global Payments Brazil. As a result of the transaction, we deconsolidated Global Payments Brazil. Thereafter, we have applied the equity method of accounting to our retained interest in Global Payments Brazil. We recorded a gain on the transaction of $2.1 million which was included in other income in the consolidated statement of income. The results of Global Payments Brazil from inception until the restructuring into a joint venture on September 30, 2013 were not material to our consolidated results of operations, and the assets and liabilities that we derecognized were not material to our consolidated balance sheet. CaixaBank completed its initial funding commitment in late fiscal 2014. During fiscal 2015 , we and CaixaBank each made additional capital investments in Global Payments Brazil of $11.4 million . Fiscal 2013 Banca Civica On December 12, 2012 , Comercia completed the acquisition of the merchant acquiring business of Banca Civica, S.A. ("Civica") from CaixaBank for € 17.5 million in cash ( $22.9 million equivalent as of the acquisition date). This transaction was recorded as a business combination. We recorded the assets acquired and liabilities assumed at fair value as of the acquisition date. The results of operations of this business were not significant to our consolidated results of operations and, accordingly, we have not provided pro forma information relating to this acquisition. Acquisition costs associated with this business combination were not material. The following table summarizes the fair value of the identifiable assets acquired as of the acquisition date (in thousands): Customer-related intangible assets $ 4,576 Contract-based intangible assets 13,858 18,434 Goodwill 4,445 Total purchase consideration $ 22,879 The goodwill associated with the acquisition was included in the Europe segment and is not deductible for tax purposes. The customer-related and contract-based intangible assets have estimated amortization periods of 10 and 18 years, respectively. Accelerated Payment Technologies On October 1, 2012 , we completed the acquisition of 100% of the common stock of APT for $410.2 million in cash. We funded the acquisition using proceeds from a term loan. We acquired APT, a provider of fully-integrated payment technology solutions for small and medium sized merchants, to expand our direct distribution capabilities in the United States. This transaction was recorded as a business combination. We recorded the assets acquired and liabilities assumed at fair value as of the acquisition date. Acquisition costs associated with this business combination were not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Property and equipment $ 1,309 Acquired technology 15,000 Customer-related intangible assets 97,200 Contract-based intangible assets 30,600 Other assets 3,708 Deferred income tax liabilities (46,167 ) 101,650 Goodwill 308,518 Total purchase consideration $ 410,168 Goodwill of $308.5 million arising from the acquisition was included in the North America segment and is not deductible for tax purposes. The customer-related intangible assets have estimated amortization periods of 12 years. The contract-based intangible assets have estimated amortization periods of 1.5 to 10 years. The acquired technology has an estimated amortization period of 8 years. Prior to the acquisition, we processed transactions for the majority of APT's merchants through an ISO arrangement. As a result, our revenue did not materially change with this acquisition and the amount of incremental revenue and earnings of APT since the acquisition date included in the consolidated statement of income for fiscal 2013 was not material. Following the acquisition, we no longer pay a monthly residual to APT. The following pro forma information shows the results of our operations for year ended May 31, 2013 as if the APT acquisition had occurred June 1, 2011. The pro forma information is presented for information purposes only and is not necessarily indicative of what would have occurred if the acquisition had been made as of that date. The pro forma information is also not intended to be a projection of future results due to the integration of the acquired business. Year Ended May 31, Unaudited 2013 2013 (Actual) (Pro forma) (in thousands, except per share data) Total revenues $ 2,375,923 $ 2,380,098 Net income attributable to Global Payments $ 216,125 $ 217,122 Net income per share attributable to Global Payments, basic $ 1.39 $ 1.40 Net income per share attributable to Global Payments, diluted $ 1.38 $ 1.39 Redeemable Noncontrolling Interest Acquisition On July 26, 2012 , we entered into an agreement to purchase HSBC Asia's 44% interest in Global Payments Asia-Pacific Limited ("GPAP") for $242.0 million in cash, which we completed on December 1, 2012 . We used a combination of excess cash and existing borrowings to fund the transaction. The purchase was treated as an equity transaction and reflected as a financing cash outflow in our statement of cash flows. Accordingly, no additional value was ascribed to the assets of GPAP. The difference between the maximum redemption amount of the redeemable noncontrolling interest at July 26, 2012 and our purchase price was recorded as a reduction of paid-in capital of $96.0 million . In accordance with ASC Topic 480, Distinguishing Liabilities from Equity ("ASC 480"), from the agreement date through the close of the transaction, we accounted for our commitment to purchase the remaining 44% of GPAP as a freestanding forward contract. Accordingly as of July 26, 2012 , we stopped attributing income to redeemable noncontrolling interest and any subsequent distributions to holders of the redeemable noncontrolling interest were characterized as interest expense. HSBC Asia was entitled to dividends through the closing of the transaction pursuant to the GPAP shareholders' agreement and the purchase agreement. During fiscal 2013, we declared a dividend for fiscal year 2012 of which $8.4 million was paid to HSBC Asia. During fiscal 2014, we declared an additional dividend related to GPAP operations for fiscal year 2013 through the closing date of which $3.3 million was paid to HSBC Asia. Such dividends are reflected as interest expense in our consolidated statements of income in the accordance with the provisions of ASC 480. |
Property and Equipment
Property and Equipment | 12 Months Ended |
May. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT As of May 31, 2015 and 2014 , property and equipment consisted of the following: Range of Useful Lives (Years) 2015 2014 (in thousands) Land N/A $ 1,571 $ 1,942 Buildings 25-30 26,236 33,996 Equipment 2-10 197,186 204,102 Software 2-10 248,137 224,766 Leasehold improvements 3-15 20,458 19,399 Furniture and fixtures 3-7 3,705 3,809 Work in progress N/A 56,782 53,704 554,075 541,718 Less accumulated depreciation and amortization 179,932 171,965 $ 374,143 $ 369,753 Total depreciation and amortization expense of property and equipment was $ 64.9 million , $ 60.1 million , and $ 55.0 million for the years ended May 31, 2015 , 2014 and 2013 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
May. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS As of May 31, 2015 and 2014 , goodwill and intangible assets consisted of the following: 2015 2014 (in thousands) Goodwill $ 1,491,833 $ 1,337,285 Other intangible assets: Customer-related intangible assets $ 718,011 $ 714,704 Trademarks and trade names 10,777 6,140 Acquired technology 93,194 25,700 Contract-based intangible assets 130,874 145,967 952,856 892,511 Less accumulated amortization: Customer-related intangible assets 342,488 317,629 Trademarks and trade names 4,437 4,147 Acquired technology 8,509 3,531 Contract-based intangible assets 37,286 32,031 392,720 357,338 $ 560,136 $ 535,173 The following table sets forth the changes in the carrying amount of goodwill for the years ended May 31, 2015 and 2014 : North America Europe Asia-Pacific Total (in thousands) Balance at May 31, 2013 $ 519,175 $ 464,769 $ 60,278 $ 1,044,222 Accumulated impairment losses — — — — Balance at May 31, 2013 519,175 464,769 60,278 1,044,222 Goodwill acquired 271,577 — — 271,577 Effect of foreign currency translation (4,097 ) 26,269 (686 ) 21,486 Balance at May 31, 2014 786,655 491,038 59,592 1,337,285 Accumulated impairment losses — — — — Balance at May 31, 2014 786,655 491,038 59,592 1,337,285 Goodwill acquired 4,794 67,220 192,225 264,239 Effect of foreign currency translation (11,715 ) (72,337 ) (25,639 ) (109,691 ) Balance at May 31, 2015 779,734 485,921 226,178 1,491,833 Accumulated impairment losses — — — — Balance at May 31, 2015 $ 779,734 $ 485,921 $ 226,178 $ 1,491,833 Customer-related intangible assets, acquired technology and trade names acquired during the year ended May 31, 2015 had weighted-average amortization periods of 15.1 years, 9.1 years and 6.1 years, respectively. Customer-related intangible assets, contract-based intangible assets and acquired technology acquired during the year ended May 31, 2014 had weighted-average amortization periods of 13.2 years, 13.2 years and 6.5 years, respectively. Amortization expense of acquired intangibles was $ 72.6 million , $ 61.9 million , and $ 56.8 million for fiscal 2015 , 2014 and 2013 , respectively. The estimated amortization expense of acquired intangibles as of May 31, 2015 for the next five fiscal years, calculated using the exchange rate at the date of acquisition, if applicable, is as follows (in thousands): 2016 $ 76,295 2017 71,471 2018 65,004 2019 61,234 2020 55,889 |
Long-Term Debt And Credit Facil
Long-Term Debt And Credit Facilities | 12 Months Ended |
May. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Credit Facilities | LONG-TERM DEBT AND CREDIT FACILITIES As of May 31, 2015 and 2014 , long-term debt consisted of the following: 2015 2014 (in thousands) Term loan (face amount of $1,234,375 and $1,250,000 at May 31, 2015 and 2014, respectively, less unamortized debt issuance costs of $2,433 and $3,172 at May 31, 2015 and 2014, respectively) $ 1,231,942 $ 1,246,828 Corporate credit facility 508,125 140,000 Notes payable — 3,679 Total long-term debt 1,740,067 1,390,507 Less current portion of long-term debt (face amount of $62,500 and $17,677 at May 31, 2015 and 2014, respectively, less unamortized debt issuance costs of $716 and $739 at May 31, 2015 and 2014, respectively) 61,784 16,938 Long-term debt, excluding current portion $ 1,678,283 $ 1,373,569 Maturity requirements on long-term debt by fiscal year are as follows (in thousands): 2016 $ 62,500 2017 78,125 2018 125,000 2019 1,476,875 Total $ 1,742,500 On February 28, 2014 , we entered into an amended and restated term loan agreement ("Term Loan") and an amended and restated credit agreement ("Corporate Credit Facility") with a syndicate of financial institutions. The Term Loan is a five -year senior unsecured $1.25 billion term loan. We used proceeds from the Term Loan to partially fund our acquisition of PayPros on March 4, 2014 and to repay the outstanding balances on our previously existing term loan and revolving credit facility. The Term Loan expires February 28, 2019 and bears interest, at our election, at either LIBOR or a base rate, in each case plus a leverage-based margin. As of May 31, 2015 , the interest rate on the Term Loan was 1.94% . From May 2015 to November 2018, the Term Loan has scheduled quarterly principal payments of 1.25% , increasing up to 2.50% , of the original principal balance. At maturity, 27.5% of the Term Loan will have been repaid through scheduled principal payments and the remaining principal balance will be due. With notice, the Term Loan may be voluntarily prepaid at any time, in whole or in part, without penalty. The Corporate Credit Facility is a five -year senior unsecured $1 billion revolving credit facility that expires February 28, 2019 and bears interest, at our election, at either LIBOR or a base rate, in each case plus a leverage-based margin. As of May 31, 2015 , the interest rate on the Corporate Credit Facility was 1.90% . The Corporate Credit Facility is available for general corporate purposes, and borrowing under the Corporate Credit Facility is available in various currencies. The Corporate Credit Facility allows us to issue standby letters of credit of up to $100 million in the aggregate. Outstanding letters of credit under the Corporate Credit Facility reduce the amount of borrowings available to us. Borrowings available to us under the Corporate Credit Facility are further limited by the covenants described below under "Compliance with Covenants." At May 31, 2015 and 2014 , we had standby letters of credit of $7.6 million and $8.1 million , respectively. The total available incremental borrowings under our Corporate Credit Facility at May 31, 2015 and 2014 was $484.3 million and $851.9 million , respectively. We are required to pay a quarterly commitment fee on the unused portion of the Corporate Credit Facility. Upon closing of the Term Loan and the Corporate Credit Facility, which occurred on February 28, 2014 , we repaid the outstanding balance of $612.5 million on our previously existing term loan and the outstanding balance of $290 million on our previously existing revolving credit facility together with accrued interest and fees on each. In connection with the debt refinancing, we recorded a loss of $2.1 million , representing the write off the remaining unamortized debt issuance costs associated with the previously existing term loan. We reported this loss in Interest and other expense in our consolidated statement of income for the year ended May 31, 2014. We incurred fees and expenses associated with these new arrangements of approximately $6.0 million , which was capitalized as debt issuance costs. Debt issuance costs are included in other non-current assets in our consolidated balance sheet at May 31, 2015 and are being amortized over the terms of the Term Loan and Corporate Credit facility. The agreements contain customary affirmative and restrictive covenants, including, among others, financial covenants based on our leverage and fixed charge coverage ratios. See "Compliance with Covenants" below. Each of the agreements includes customary events of default, the occurrence of which, following any applicable cure period, would permit lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. Short-term Lines of Credit We have short-term lines of credit with banks in the United States and Canada as well as several countries in Europe and Asia in which we do business. The short-term lines of credit, which are restricted for use in funding settlement, generally have variable short-term interest rates and are subject to annual review. The credit facilities are generally denominated in local currency but may, in some cases, facilitate borrowings in multiple currencies. For certain of our lines of credit, the line of credit balance is reduced by the amount of cash we have on deposit in specific accounts with the lender when determining the available credit. Accordingly, the amount of the outstanding line of credit may exceed the stated credit limit when the net position is less than the credit limit. As of May 31, 2015 a total of $193.2 million of cash on deposit was used to determine the available credit. As of May 31, 2015 and 2014 , respectively, we had $592.6 million and $440.1 million outstanding under these short-term lines of credit with additional capacity as of May 31, 2015 , of $567.5 million to fund settlement. The weighted-average interest rate on these borrowings was 1.5% and 1.7% , at May 31, 2015 and 2014 , respectively. We are required to pay a commitment fee on unused portions of short-term lines of credit. During the year ended May 31, 2015 , the maximum and average outstanding balances under these lines of credit were $1,258.7 million and $647.3 million , respectively. The maximum outstanding amount was greater than our period-end balance due to the timing of settlement funding. Compliance with Covenants There are certain financial and non-financial covenants contained in our various credit facilities and Term Loan. Our Term Loan and Corporate Credit Facility agreements include financial covenants requiring (i) a leverage ratio no greater than 3.50 to 1.00 ( 3.75 to 1.00 in the case of a business acquisition, subject to certain conditions) and (ii) a fixed charge coverage ratio no less than 2.50 to 1.00 . We complied with all applicable covenants as of and for the year ended May 31, 2015 . Interest Rate Swap Agreement On October 9, 2014 , we entered into an interest rate swap agreement with a major financial institution to hedge changes in cash flows attributable to interest rate risk on a portion of our variable-rate debt instruments. The interest rate swap agreement, which became effective on October 31, 2014 , will mature on February 28, 2019 . At May 31, 2015 , our interest rate swap agreement effectively converted $500 million of our variable-rate debt to a fixed rate of 1.52% plus a leverage-based margin. The fair value of our interest rate swap as of May 31, 2015 was a liability of $ 6.2 million , which is reflected in accounts payable and accrued liabilities in the consolidated balance sheet. Net amounts to be received or paid under the swap agreement are reflected as adjustments to interest expense. Since we have designated the interest rate swap agreement as a cash flow hedge, unrealized gains or losses resulting from adjusting the swap to fair value are recorded as components of other comprehensive income except for any ineffective portion of the change in fair value, which would be immediately recorded in interest expense. During the year ended May 31, 2015 , there was no ineffectiveness. The fair value of the swap agreement was 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. This derivative instrument was classified within Level 2 of the valuation hierarchy. During the year ended May 31, 2015 , we recognized $ 4.0 million in interest expense related to settlements on the interest rate swap. At May 31, 2015 , the amount in accumulated other comprehensive income related to our interest rate swap that is expected to be reclassified into interest expense during the next 12 months was not material. Interest Expense Interest expense was $39.9 million , $37.5 million and $31.7 million for the years ended May 31, 2015 , 2014 and 2013 , respectively. Interest expense is comprised primarily of interest on our long-term debt and short-term lines of credit. Interest expense also includes settlements on our interest rate swap, amortization of deferred debt issuance costs, commitment fees on the unused portions of our Corporate Credit Facility and short-term lines of credit and interest related to unrecognized income tax benefits. Interest expense of $3.6 million that had been accrued related to an unrecognized tax benefit was eliminated as of May 31, 2015 and reflected as a reduction to Interest and other expense in the year ended May 31, 2015 in our consolidated statement of income. See "Note 8 - Income Tax" for further discussion. Interest expense during the year ended May 31, 2014 includes a loss on extinguishment of debt of $2.1 million in connection with the refinancing of our term loan and revolving credit facilities. Interest expense for the years ended May 31, 2014 and 2013 includes dividend payments to HSBC Asia in the amounts of $3.3 million and $8.4 million , respectively, related to a redeemable noncontrolling interest that HSBC Asia held in Global Payments Asia-Pacific. See "Note 3 - Business and Intangible Asset Acquisitions and Joint Ventures- Redeemable Noncontrolling Interest Acquisition " for further discussion. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
May. 31, 2015 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES As of May 31, 2015 and 2014 , accounts payable and accrued liabilities consisted of the following: 2015 2014 (in thousands) Trade accounts payable $ 22,836 $ 13,076 Compensation and benefits 57,238 61,193 Third party processing expenses 4,399 11,062 Commissions to third parties 63,737 66,551 Accrued fees and assessment expenses 39,417 51,649 Other 125,020 86,499 $ 312,647 $ 290,030 |
Income Tax
Income Tax | 12 Months Ended |
May. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax | INCOME TAX The provision for income taxes for the years ended May 31 , 2015 , 2014 and 2013 consisted of the following: 2015 2014 2013 (in thousands) Current income tax expense: Federal $ 25,022 $ 49,178 $ 16,326 State 3,905 3,856 987 Foreign (10,346 ) 48,075 36,020 18,581 101,109 53,333 Deferred income tax expense: Federal 14,822 1,568 26,302 State 3,606 1,206 3,568 Foreign 70,986 3,515 12,368 89,414 6,289 42,238 $ 107,995 $ 107,398 $ 95,571 The income tax expense allocated to noncontrolling interests was $8.6 million , $5.2 million and $4.2 million for the years ended May 31 , 2015 , 2014 and 2013 , respectively. The following presents income before income taxes for the years ended May 31 , 2015 , 2014 and 2013 : 2015 2014 2013 (in thousands) United States $ 135,901 $ 153,453 $ 137,501 Foreign 281,209 223,897 196,783 $ 417,110 $ 377,350 $ 334,284 Our effective tax rates for the years ended May 31, 2015 , 2014 and 2013 , respectively, differ from the federal statutory rate as follows: 2015 2014 2013 Federal U.S. statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 1.1 0.9 0.9 Foreign income taxes (8.5 ) (7.2 ) (7.0 ) Foreign interest income not subject to tax (1.8 ) (2.1 ) (2.8 ) Tax credits and other 1.0 3.1 3.7 Effective tax rate attributable to Global Payments 26.8 29.7 29.8 Effective tax rate allocated to noncontrolling interests (0.9 ) (1.2 ) (1.2 ) Effective tax rate 25.9 % 28.5 % 28.6 % Deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax laws and rates. Deferred income taxes as of May 31, 2015 and 2014 reflect the effect of temporary differences between the amounts of assets and liabilities for financial accounting and income tax purposes. As of May 31, 2015 and 2014 , principal components of deferred tax items were as follows: 2015 2014 (in thousands) Deferred income tax assets: Basis difference - U.K. business $ 24,520 $ 96,720 Foreign income tax credit carryforward 14,172 11,819 Foreign net operating loss carryforward 2,330 6,881 U.S. net operating loss carryforward 6,927 22,074 Share-based compensation expense 7,727 5,916 Other 8,636 6,266 64,312 149,676 Less valuation allowance (3,823 ) (7,199 ) 60,489 142,477 Deferred income tax liabilities: Acquired intangible assets 147,239 149,440 Property and equipment 63,957 53,238 Taxes on unremitted earnings and other 4,992 5,470 Foreign currency translation 14,659 26,813 Other 2,069 1,800 232,916 236,761 Net deferred income tax liability $ (172,427 ) $ (94,284 ) The net deferred income tax liability is reflected on our consolidated balance sheets as of May 31, 2015 and 2014 as follows: 2015 2014 (in thousands) Noncurrent deferred income tax asset 30,428 101,940 Noncurrent deferred income tax liability (202,855 ) (196,224 ) $ (172,427 ) $ (94,284 ) Undistributed earnings of $696.9 million from certain foreign subsidiaries are considered to be permanently reinvested abroad and will not be repatriated to the United States in the foreseeable future. Because those earnings are considered to be indefinitely reinvested, no domestic federal or state deferred income taxes have been provided thereon. If we were to make a distribution of any portion of those earnings in the form of dividends or otherwise, we would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign jurisdictions. Because of the availability of U.S. foreign tax credit carryforwards, it is not practicable to determine the domestic federal income tax liability that would be payable if such earnings were no longer considered to be reinvested indefinitely. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Changes to our valuation allowance during the years ended May 31, 2015 and 2014 are summarized below (in thousands): Balance at May 31, 2013 $ (28,464 ) Utilization of foreign net operating loss carryforwards 2,822 Allowance for foreign tax credit carryforward 18,061 Other 382 Balance at May 31, 2014 (7,199 ) Utilization of foreign net operating loss carryforwards 3,387 Other (11 ) Balance at May 31, 2015 $ (3,823 ) Net operating loss carryforwards of foreign subsidiaries totaling $12.4 million and U.S. net operating loss carryforwards previously acquired totaling $19.8 million at May 31, 2015 will expire between May 31, 2017 and May 31, 2033 if not utilized. Capital loss carryforwards of U.S. subsidiaries totaling $4.7 million will expire if not utilized by May 31, 2017 . Tax credit carryforwards totaling $8.4 million at May 31, 2015 will expire between May 31, 2017 and May 31, 2023 if not utilized. 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. As a result of events that occurred in the fourth quarter of the year ended May 31, 2015 , management concluded that it was more likely than not that the tax positions in a foreign jurisdiction, for which we had recorded estimated liabilities of $65.6 million in other noncurrent liabilities on our consolidated balance sheet, would be sustained on their technical merits based on information available as of May 31, 2015 . Therefore, the liability and corresponding deferred tax assets were eliminated as of May 31, 2015 . The uncertain tax positions have been subject to an ongoing examination in that foreign jurisdiction by the tax authority. Discussions and correspondence between the tax authority and us during the fourth quarter indicated that the likelihood of the positions being sustained had increased. Subsequent to May 31, 2015 , we received a final closure notice regarding the examination resulting in no adjustments to taxable income related to this matter for the tax returns filed for the periods ended May 31, 2010 through May 31, 2013 . The unrecognized tax benefits were effectively settled with this final closure notice. We are no longer subjected to state income tax examinations for years ended on or before May 31, 2008 , U.S. federal income tax examinations for fiscal years prior to 2012 and United Kingdom federal income tax examinations for years ended on or before May 31, 2013. A reconciliation of the beginning and ending amounts of unrecognized income tax benefits, excluding penalties and interest, for the years ended May 31, 2015 , 2014 , and 2013 is as follows: 2015 2014 2013 (in thousands) Balance at the beginning of the year $ 67,576 $ 53,763 $ 45,595 Additions based on income tax positions related to the current year 6,311 8,551 8,778 Additions for income tax positions of prior years 512 296 142 Foreign currency impact for income tax positions (5,713 ) 5,303 (601 ) Reductions for income tax positions of prior years (32 ) (60 ) (151 ) Settlements with income tax authorities (504 ) (277 ) — Changes in judgment regarding tax position (65,591 ) — — Balance at the end of the year $ 2,559 $ 67,576 $ 53,763 As of May 31, 2015 , the total amount of gross unrecognized income tax benefits that, if recognized, would affect the provision for income taxes is $2.6 million . We recognize interest and penalties related to unrecognized income tax benefits in interest expense and selling, general and administrative expenses, respectively, in our consolidated statement of income. Interest expense of $3.6 million that had been accrued related to the unrecognized tax benefit was eliminated as of May 31, 2015 and was reflected as a reduction to Interest and other expense in the year ended May 31, 2015 in our consolidated statement of income. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
May. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY During fiscal 2015 , our Board of Directors authorized the additional repurchase of up to $302.3 million of our common stock. As of May 31, 2015 , we had $102.9 million of remaining authorization to repurchase our common stock. On April 10, 2015 , pursuant to the authorization described above, we entered into an Accelerated Share Repurchase program (''ASR'') with a financial institution to repurchase an aggregate of $100 million of our common stock. In exchange for an up-front payment of $100 million , the financial institution committed to deliver a number of shares during the ASR's purchase period, which ended on June 16, 2015 . On April 14, 2015 , 1,630,988 shares were initially delivered to us. At May 31, 2015 , we accounted for the variable component of remaining shares to be delivered under the ASR as a forward contract indexed to our common stock which met all of the applicable criteria for equity classification. At maturity, an additional 324,742 shares was delivered to us. The total number of shares delivered under this ASR was 1,955,730 shares at an average price of $51.13 per share. During fiscal 2015 , in addition to shares repurchased under the ASR, we repurchased and retired 7.0 million shares of our common stock at a cost of $269.0 million , or an average of $38.19 per share, including commissions. On October 7, 2013 , we entered into an ASR with a financial institution to repurchase an aggregate of $100 million of our common stock. In exchange for an upfront payment of $100 million , the financial institution committed to deliver a number of shares during the ASR's purchase period, which ended on January 9, 2014 . The total number of shares delivered under this ASR was 3.2 million shares at an average price of $30.48 per share. During fiscal 2014 , in addition to shares repurchased under the ASR, we repurchased and retired 12.4 million shares of our common stock at a cost of $355.0 million , or an average of $28.65 per share, including commissions. During fiscal 2013 , we entered into an ASR with a financial institution to repurchase an aggregate of $125 million of our common stock. In exchange for an up-front payment of $125 million , the financial institution committed to deliver a number of shares during the ASR's purchase period, which ended on March 30, 2013 . The total number of shares delivered under this ASR was 5.0 million at an average price of $24.57 per share. During fiscal 2013 , in addition to shares repurchased under the ASR, we repurchased and retired 2.2 million shares of our common stock at a cost of $50.3 million , or an average of $22.28 per share, including commissions. |
Share-Based Awards and Options
Share-Based Awards and Options | 12 Months Ended |
May. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Awards and Options | SHARE-BASED AWARDS AND OPTIONS Non-qualified stock options and restricted stock have been granted to officers, key employees and directors under the Global Payments Inc. 2000 Long-Term Incentive Plan, as amended and restated (the "2000 Plan"), the Global Payments Inc. Amended and Restated 2005 Incentive Plan (the "2005 Plan"), the Amended and Restated 2000 Non-Employee Director Stock Option Plan (the "Director Stock Option Plan"), and the Global Payments Inc. 2011 Incentive Plan (the "2011 Plan") (collectively, the "Plans"). There were no further grants made under the 2000 Plan after the 2005 Plan was effective, and the Director Stock Option Plan expired by its terms on February 1, 2011. There will be no future grants under the 2000 Plan, the 2005 Plan or the Director Stock Option Plan. The 2011 Plan permits grants of equity to employees, officers, directors and consultants. A total of 14.0 million shares of our common stock was reserved and made available for issuance pursuant to awards granted under the 2011 Plan. The following table summarizes share-based compensation expense and the related income tax benefit recognized for stock options, restricted stock, performance units, TSR units, and shares issued under our employee stock purchase plan (each as described below). 2015 2014 2013 (in millions) Share-based compensation expense $ 21.1 $ 29.8 $ 18.4 Income tax benefit $ (6.9 ) $ (7.1 ) $ (5.6 ) We grant various share-based awards pursuant to the Plans under what we refer to as our "long-term incentive plan." The awards are held in escrow and released upon the grantee's satisfaction of conditions of the award certificate. Restricted Stock and Restricted Stock Units We grant restricted stock and restricted stock units. Restricted stock awards vest over a period of time, provided, however, that if the grantee is not employed by us on the vesting date, the shares are forfeited. Restricted shares cannot be sold or transferred until they have vested. Restricted stock granted before fiscal 2015 vests in equal installments on each of the first four anniversaries of the grant date. Restricted stock granted during fiscal 2015 will either vest in equal installments on each of the first three anniversaries of the grant date or cliff vest at the end of a three -year service period. The grant date fair value of restricted stock, which is based on the quoted market value of our common stock at the closing of the award date, is recognized as share-based compensation expense on a straight-line basis over the vesting period. Performance Units Certain of our executives have been granted up to three types of performance units under our long-term incentive plan. Performance units are performance-based restricted stock units that, after a performance period, convert into common shares, which may be restricted. The number of shares is dependent upon the achievement of certain performance measures during the performance period. The target number of performance units and any market-based performance measures ("at threshold," "target," and "maximum") are set by the Compensation Committee of our Board of Directors. Performance units are converted only after the Compensation Committee certifies performance based on pre-established goals. The performance units granted to certain executives in fiscal 2014 were based on a one -year performance period. After the Compensation Committee certified the performance results, 25% of the performance units converted to unrestricted shares. The remaining 75% converted to restricted shares that vest in equal installments on each of the first three anniversaries of the conversion date. The performance units granted to certain executives during fiscal 2015 were based on a three-year performance period. After the Compensation Committee certifies the performance results for the three-year period, performance units earned will convert into unrestricted common stock. The Compensation Committee may set a range of possible performance-based outcomes for performance units. Depending on the achievement of the performance measures, the grantee may earn up to 200% of the target number of shares. For awards with only performance conditions, we recognize compensation expense over the performance period using the grant date fair value of the award, which is based on the number of shares expected to be earned according to the level of achievement of performance goals. If the number of shares expected to be earned were to change at any time during the performance period, we would make a cumulative adjustment to share-based compensation expense based on the revised number of shares expected to be earned. During fiscal 2015, certain executives were granted performance units that we refer to as leveraged performance units, or LPUs. LPUs contain a market condition based on our relative stock price growth over a three -year performance period. The LPUs contain a minimum threshold performance which, if not met, would result in no payout. The LPUs also contain a maximum award opportunity set as a fixed dollar and fixed number of shares. After the three -year performance period, one-third of any earned units converts to unrestricted common stock. The remaining two-thirds convert to restricted stock that will vest in equal installments on each of the first two anniversaries of the conversion date. We recognize share-based compensation expense based on the grant date fair value of the LPUs, as determined by use of a Monte Carlo model, on a straight-line basis over the requisite service period for each separately vesting portion of the LPU award. Total Shareholder Return Units Before fiscal 2015, certain of our executives were granted total shareholder return ("TSR") units, which are performance-based restricted stock units that are earned based on our total shareholder return over a three -year performance period compared to companies in the S&P 500. Once the performance results are certified, TSR units convert into unrestricted common stock. Depending on our performance, the grantee may earn up to 200% of the target number of shares. The target number of TSR units for each executive is set by the Compensation Committee. We recognize share-based compensation expense based on the grant date fair value of the TSR units, as determined by use of a Monte Carlo model, on a straight-line basis over the vesting period. The following table summarizes the changes in unvested share-based awards for the years ended May 31, 2015 and 2014 (shares in thousands): Shares Weighted-Average Unvested at May 31, 2013 2,192 $ 22.00 Granted 1,088 23.55 Vested (1,286 ) 22.31 Forfeited (240 ) 22.40 Unvested at May 31, 2014 1,754 22.72 Granted 954 36.21 Vested (648 ) 23.17 Forfeited (212 ) 27.03 Unvested at May 31, 2015 1,848 $ 28.97 Including the restricted stock, performance units and TSR units described above, the total fair value of share-based awards vested during the years ended May 31, 2015 , 2014 and 2013 was $15.0 million , $28.7 million and $13.6 million , respectively. For these share-based awards, we recognized compensation expense of $19.8 million , $28.2 million and $16.2 million in the years ended May 31, 2015 , 2014 and 2013 , respectively. As of May 31, 2015 , there was $ 41.3 million of total unrecognized compensation expense related to unvested share-based awards that we expect to recognize over a weighted-average period of 2.1 years. Employee Stock Purchase Plan We have an employee stock purchase plan under which the sale of 4.8 million shares of our common stock has been authorized. Employees may designate up to the lesser of $25,000 or 20% of their annual compensation for the purchase of our common stock. The price for shares purchased under the plan is 85% of the market value on the last day of each calendar quarter. As of May 31, 2015 , 2.2 million shares had been issued under this plan, with 2.6 million shares reserved for future issuance. We recognized compensation expense for the plan of $0.6 million in each of the years ended May 31, 2015 , 2014 and 2013 . The weighted-average grant-date fair value of each designated share purchased under this plan during the years ended May 31, 2015 , 2014 and 2013 was approximately $4 , $4 and $3 , respectively, which represents the fair value of the 15% discount. Stock Options Stock options are granted with an exercise price equal to 100% of fair market value on the date of grant and have a term of 10 -years. Stock options granted before fiscal 2015 vest in equal installments on each of the first four anniversaries of the grant date. Stock options granted during fiscal 2015 vest in equal installments on each of the first three anniversaries of the grant date. During the year ended May 31, 2015 , we granted 306,366 stock options. We did no t grant stock options during the years ended May 31, 2014 and 2013 . Our stock option plans provide for accelerated vesting under certain conditions. The following is a summary of our stock option activity as of and for the years ended May 31, 2015 and 2014 : Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at May 31, 2013 3,530 $ 17.55 3.5 $ 23.9 Granted — — Forfeited (130 ) 19.04 Exercised (1,868 ) 15.20 Outstanding at May 31, 2014 1,532 20.36 3.8 21.3 Granted 306 35.78 Forfeited (48 ) 27.42 Exercised (896 ) 20.15 Outstanding at May 31, 2015 894 $ 25.47 5.2 $ 23.9 Options vested and exercisable at May 31, 2015 618 $ 20.88 3.5 $ 19.4 Options vested and exercisable at May 31, 2014 1,450 $ 20.42 3.6 $ 20.1 We recognized compensation expense for stock options of $0.7 million , $1.0 million and $1.7 million during the years ended May 31, 2015 , 2014 and 2013 , respectively. The aggregate intrinsic value of stock options exercised during fiscal 2015 , 2014 and 2013 was $16.6 million , $24.9 million and $6.3 million , respectively. As of May 31, 2015 , we had $1.6 million of unrecognized compensation expense related to unvested stock options that we expect to recognize over a weighted-average period of 3.5 years. The weighted-average grant-date fair value of each stock option granted during the year ended May 31, 2015 was $ 8.45 . Fair value was estimated on the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions: Risk-free interest rate 1.57 % Expected volatility 23.65 % Dividend yield 0.13 % Expected life (years) 5 The risk-free interest rate is based on the yield of a zero coupon U.S. Treasury security with a maturity equal to the expected life of the option from the date of the grant. Our assumption on expected volatility is based on our historical volatility. The dividend yield assumption is calculated using our average stock price over the preceding year and the annualized amount of our most current quarterly dividend per share. We based our assumptions on the expected lives of the options on our analysis of the historical exercise patterns of the options and our assumption on the future exercise pattern of options. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
May. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow disclosures for the years ended May 31, 2015 , 2014 , and 2013 are as follows: 2015 2014 2013 (in thousands) Supplemental cash flow information: Income taxes paid, net of refunds $ 66,726 $ 94,938 $ 55,218 Interest paid (1) $ 36,537 $ 33,214 $ 29,677 (1) Includes distributions to HSBC Asia of $3.3 million and $8.4 million in fiscal 2014 and fiscal 2013, respectively, which were characterized as interest expense pursuant to ASC 480. See "Note 3 - Business and Intangible Asset Acquisitions and Joint Ventures." |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
May. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | NONCONTROLLING INTERESTS For the years ended May 31, 2015 , 2014 and 2013 , net income included in the consolidated statements of changes in equity is reconciled to net income presented in the consolidated statements of income as follows: 2015 2014 2013 (in thousands) Net income attributable to Global Payments $ 278,040 $ 245,286 $ 216,125 Net income attributable to nonredeemable noncontrolling interests 31,075 24,666 20,774 Subtotal per statement of changes in equity 309,115 269,952 236,899 Net income attributable to redeemable noncontrolling interest — — 1,814 Net income $ 309,115 $ 269,952 $ 238,713 The following table is the reconciliation of net income attributable to noncontrolling interests to comprehensive income attributable to noncontrolling interests for the years ended May 31, 2015 and May 31, 2014 : 2015 2014 2013 (in thousands) Net income attributable to noncontrolling interests, net of tax $ 31,075 $ 24,666 $ 22,588 Foreign currency translation attributable to nonredeemable noncontrolling interests (28,597 ) 7,054 7,217 Foreign currency translation attributable to redeemable noncontrolling interest — — 573 Comprehensive income attributable to noncontrolling interests, net of tax $ 2,478 $ 31,720 $ 30,378 The following table details the components of redeemable noncontrolling interest for the year ended May 31, 2013 : 2013 (in thousands) Beginning balance $ 144,422 Net income attributable to redeemable noncontrolling interest 1,814 Foreign currency translation adjustment 573 Decrease in the maximum redemption amount of redeemable noncontrolling interest (817 ) Derecognition of redeemable noncontrolling interest (145,992 ) Ending balance $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
May. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in the accumulated balances for each component of other comprehensive loss were as follows for the years ended May 31 , 2015 , 2014 and 2013 : Foreign Currency Translation Unrealized Losses on Hedging Activities Defined Benefit Pension Plans Accumulated Other Comprehensive Loss (in thousands) Balance at May 31, 2012 $ (24,951 ) $ — $ (5,049 ) $ (30,000 ) Other comprehensive income, net of income tax 13,421 — 1,517 14,938 Balance at May 31, 2013 (11,530 ) — (3,532 ) (15,062 ) Other comprehensive income, net of income tax 13,113 — 173 13,286 Balance at May 31, 2014 1,583 — (3,359 ) (1,776 ) Other comprehensive loss, net of income tax (179,892 ) (3,874 ) (450 ) (184,216 ) Balance at May 31, 2015 $ (178,309 ) $ (3,874 ) $ (3,809 ) $ (185,992 ) Other comprehensive income (loss) attributable to noncontrolling interest, which relates only to foreign currency translation, was $(28.6) million , $7.1 million and $7.2 million for the years ended May 31 , 2015 , 2014 and 2013 , respectively. |
Segment Information
Segment Information | 12 Months Ended |
May. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION General Information We provide payment and digital commerce solutions and operate in three reportable segments: North America, Europe and Asia-Pacific. Due to international investment and a realigned management structure, commencing at the beginning of fiscal 2016 and retrospectively presented herein, we have replaced our former International merchant services segment with two reportable operating segments: Europe and Asia-Pacific. Information About Profit and Assets We evaluate performance and allocate resources based on the operating income of each segment. The operating income of each segment includes the revenues of the segment less those expenses that are directly related to those revenues. Operating overhead, shared costs and certain compensation costs are included in Corporate in the following table. Interest and other income, interest and other expense and provision for income taxes are not allocated to the individual segments. We do not evaluate performance or allocate resources using segment asset data. The accounting policies of the reportable segments are the same as those described in the Summary of Significant Accounting Policies in "Note 1 - Summary of Significant Accounting Policies." Information on segments, including revenue by geographic distribution within segments, and reconciliations to consolidated revenues and consolidated operating income are as follows for the years ended May 31, 2015 , 2014 , and 2013 : 2015 2014 2013 (in thousands) Revenues: North America $ 1,968,890 $ 1,808,992 $ 1,705,675 Europe 615,966 587,463 522,593 Asia-Pacific (2) 188,862 157,781 147,655 Consolidated revenues $ 2,773,718 $ 2,554,236 $ 2,375,923 Operating income (loss): North America $ 293,139 $ 272,251 $ 258,910 Europe (1) 240,014 209,334 179,570 Asia-Pacific (2) 39,697 30,845 31,672 Corporate (3) (116,253 ) (106,931 ) (112,939 ) Consolidated operating income $ 456,597 $ 405,499 $ 357,213 Depreciation and amortization: North America $ 81,051 $ 60,970 $ 48,882 Europe 39,910 48,589 51,018 Asia-Pacific (2) 9,973 6,139 6,502 Corporate 6,571 6,371 5,386 Consolidated depreciation and amortization $ 137,505 $ 122,069 $ 111,788 (1) During the year ended May 31, 2015 , operating income for the Europe segment includes a $2.9 million gain on the sale of a component of our Russia business that leased automated teller machines to our sponsor bank in Russia. The gain is presented in selling, general and administrate expenses in the consolidated statements of income. (2) The results of Ezidebit are included in the Asia-Pacific segment from the date of acquisition, October 10, 2014 . (3) Includes a processing system intrusion credit of $7.0 million in fiscal 2014 and a charge of $36.8 million in fiscal 2013. Enterprise-Wide Information As a percentage of our total consolidated revenues, revenues from external customers in the United States, the United Kingdom and Canada was 60% , 13% and 11% , respectively, for the year ended May 31, 2015; 58% , 13% and 13% , respectively, for the year ended May 31, 2014; and 59% , 12% and 13% , respectively, for the year ended May 31, 2013. Revenues from external customers are attributed to individual countries based on the location of the customer arrangements. Our results of operations and our financial condition are not significantly reliant upon any single customer. Long-lived assets, excluding goodwill and other intangible assets, by location as of May 31, 2015 and 2014 were as follows: 2015 2014 (in thousands) United States $ 284,257 $ 259,457 Foreign countries 89,886 110,296 $ 374,143 $ 369,753 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
May. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases We conduct a major part of our operations using leased facilities and equipment. Many of these operating leases have renewal and purchase options and provide that we pay the cost of property taxes, insurance and maintenance. Rent expense on all operating leases for the years ended May 31, 2015 , 2014 and 2013 was $17.5 million , $16.0 million , and $16.5 million , respectively. Future minimum lease payments for noncancelable operating leases at May 31, 2015 were as follows (in thousands): Fiscal years ending May 31: 2016 $ 13,878 2017 11,089 2018 9,226 2019 7,760 2020 6,873 Thereafter 9,172 Total future minimum lease payments $ 57,998 Legal We are party to a number of claims and lawsuits incidental to our business. In our opinion, the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, are not expected to have a material adverse effect on our financial position, liquidity, results of operations or cash flows. Operating Taxes We define operating taxes as taxes that are not derived based on earnings, such as sales, gross receipts, property, value-added and other business taxes. During the course of operations, we must interpret the meaning of various operating tax matters in the United States and in the foreign jurisdictions in which we do business. Taxing authorities in those various jurisdictions may arrive at different interpretations of applicable tax laws and regulations as they relate to such operating tax matters, which could result in the payment of additional taxes in those jurisdictions. As of May 31, 2015 and 2014 , we did not have liabilities for contingencies related to operating tax items based on management's best estimate given our history with similar matters and interpretations of current laws and regulations. BIN/ICA Agreements We have entered into sponsorship or depository and processing agreements with certain banks. These agreements allow us to use the banks' identification numbers, referred to as a Bank Identification Number ("BIN") for Visa transactions and an Interbank Card Association ("ICA") number for MasterCard transactions, to clear credit card transactions through Visa and MasterCard. Certain of these agreements contain financial covenants, and we were in compliance with all such covenants as of May 31, 2015 . |
Processing System Intrusion
Processing System Intrusion | 12 Months Ended |
May. 31, 2015 | |
Unusual Items [Abstract] | |
Processing System Intrusion | PROCESSING SYSTEM INTRUSION In March 2012, we identified and self-reported unauthorized access into a limited portion of our North America card processing system and potential unauthorized access to servers containing personal information collected from U.S. merchants who applied for processing services. Through fiscal 2014, we incurred approximately $114.2 million of cumulative expenses, net of insurance recoveries of $27.0 million , relating to the incident. During fiscal 2014, we recorded a credit of $7.0 million for insurance recoveries, and during fiscal 2013, we recorded a processing system intrusion charge of $36.8 million . As a result of this event, certain card networks temporarily removed us from their lists of Payment Card Industry Data Security Standards ("PCI DSS") compliant service providers. After remediating our processes and systems, we returned to the lists of PCI DSS compliant service providers in the third quarter of fiscal 2013. |
Quarterly Consolidated Financia
Quarterly Consolidated Financial Information (Unaudited) | 12 Months Ended |
May. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Consolidated Financial Information (Unaudited) | QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) Summarized quarterly results for the years ended May 31, 2015 and 2014 are as follows (in thousands, except per share data): Quarter Ended August 31 November 30 February 28 May 31 Fiscal 2015 Revenues $ 704,895 $ 697,291 $ 664,983 $ 706,549 Operating income 124,398 123,984 104,615 103,600 Net income 84,434 85,256 69,315 70,110 Net income attributable to Global Payments 75,366 74,781 62,568 65,325 Basic earnings per share attributable to Global Payments 0.55 0.55 0.47 0.50 Diluted earnings per share attributable to Global Payments 0.55 0.55 0.46 0.49 Quarter Ended August 31 November 30 February 28 May 31 Fiscal 2014 Revenues $ 629,685 $ 634,122 $ 616,452 $ 673,977 Operating income 107,384 111,907 97,291 88,917 Net income 71,708 79,857 60,121 58,266 Net income attributable to Global Payments 64,643 73,897 55,121 51,625 Basic earnings per share attributable to Global Payments 0.44 0.51 0.38 0.37 Diluted earnings per share attributable to Global Payments 0.44 0.51 0.38 0.36 Operating income, net income, net income attributable to Global Payments and basic and diluted earnings per share for the quarter ended May 31, 2015 include the effects of employee termination costs of $6.3 million (pre-tax) and a $1.2 million (pre-tax) charge for a transaction tax associated with the acquisition of Realex. Net income, net income attributable to Global Payments and basic and diluted earnings per share for the quarter ended May 31, 2015 also include the effect of the reversal of interest expense of $3.6 million (pre-tax) that had been previously accrued related to a previously unrecognized tax benefit. An out-of period immaterial correction related to the measurement of certain deferred tax assets was recorded in the quarter ended May 31, 2015 as a charge to income tax expense of $14.3 million ( $6.8 million of which related to the quarter ended August 31, 2014). This charge was offset by a corresponding income tax benefit recorded in the quarter ended May 31, 2015 related to a change in judgment regarding the tax rate at which those same deferred tax assets were expected to be realized in conjunction with the recognition of the previously unrecognized tax benefit related to an uncertain tax position in a foreign jurisdiction. See "Note 8 – Income Tax" for further information. Both amounts are included in the foreign income taxes line of the reconciliation between the federal statutory rate and the effective tax rate for the year ended May 31, 2015 in "Note 8 - Income Tax." |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
May. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II of Valuation and Qualifying Accounts Disclosure | SCHEDULE II Valuation & Qualifying Accounts (a) Description (b) Balance at Beginning of Year (c) Additions: Charged to Costs and Expenses (d) Deductions: Uncollectible Accounts Write-Off (e) Balance at End of Year (in thousands) Allowance for doubtful accounts May 31, 2013 $ 532 $ 444 $ 467 $ 509 May 31, 2014 509 174 282 401 May 31, 2015 401 324 257 468 Reserve for operating losses-merchant card processing (1) May 31, 2013 $ 2,325 $ 9,484 $ 9,491 $ 2,318 May 31, 2014 2,318 8,658 9,252 1,724 May 31, 2015 1,724 4,928 5,366 1,286 Reserve for sales allowances-merchant card processing (1) May 31, 2013 $ 873 $ 2,074 $ 1,986 $ 961 May 31, 2014 961 1,330 1,690 601 May 31, 2015 601 7,974 3,646 4,929 Reserve for operating losses-check guarantee processing May 31, 2013 $ 3,435 $ 11,731 $ 12,022 $ 3,144 May 31, 2014 3,144 11,916 12,062 2,998 May 31, 2015 2,998 9,578 9,892 2,684 Deferred income tax asset valuation allowance May 31, 2013 $ 26,090 $ 2,374 $ — $ 28,464 May 31, 2014 28,464 (21,265 ) — 7,199 May 31, 2015 7,199 (3,376 ) — 3,823 (1) Included in settlement processing obligations. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
May. 31, 2015 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | NOTE 18—SUBSEQUENT EVENTS We have provided certain information in our consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended May 31, 2015 filed with the Securities and Exchange Commission (the "SEC") on July 30, 2015 (the "Fiscal 2015 Annual Report") solely to reflect, for all periods presented, the retrospective effects of a change in reportable segments, the adoption of certain accounting standards updates and the Stock Split, each of which occurred subsequent to the filing of the Fiscal 2015 Annual Report, and each of which is described in greater detail below. Commencing with the fiscal year ending May 31, 2016 , which we refer to as "fiscal 2016 ," we began reporting based on realigned segments (North America, Europe and Asia-Pacific) due to international investment and a realigned management structure. As a result, these footnotes present prior-year segment data in a manner that conforms to our fiscal 2016 presentation. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes." To simplify the presentation of deferred income taxes, the amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. We adopted this ASU during the three months ended November 30, 2015 . As a result, our consolidated balance sheets at May 31, 2015 and 2014 , and related footnotes, present deferred income taxes in a manner that conforms to our current presentation. The adoption of this standard did not affect our results of operations or cash flows in either the current or prior interim or annual periods. In April 2015, the FASB issued ASU 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." The update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. In August 2015, the FASB issued ASU 2015-15, "Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting," to clarify that an entity may elect to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We adopted both ASUs as of June 1, 2015 and elected to continue to present debt issuance costs related to our revolving credit facilities as an asset. As a result, our consolidated balance sheets at May 31, 2015 and 2014 , and related footnotes, present debt issuance costs related to our term loans in a manner that conforms to our current presentation. The adoption of this standard did not affect our results of operations or cash flows in either the current or prior interim or annual periods. During the second quarter of fiscal 2016 , our board of directors declared a two-for-one stock split effected in the form of a stock dividend paid on November 2, 2015 . As a result, all share and per share information presented in our consolidated financial statements as of May 31, 2015 and 2014 and for the years ended May 31, 2015 , 2014 and 2013 and the related notes have been retrospectively adjusted to reflect the Stock Split, except for authorized common shares which were not affected. The Company’s consolidated financial statements and the related notes have been updated solely to reflect the change in reportable segments, the adoption of the accounting standards described above and the Stock Split. Other than as required to reflect the change in reportable segments, adoption of accounting standards and Stock Split, we did not update the other disclosures contained in our consolidated financial statements and the related notes, nor did we reflect any subsequent information, activities, events, risks or trends. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May. 31, 2015 | |
Accounting Policies [Abstract] | |
Business, Consolidation and Presentation | Business, consolidation and presentation — We are a leading worldwide provider of payment technology services delivering innovative solutions to our customers. Our partnerships, technologies and employee expertise enable us to provide a broad range of services that allow our customers to accept various payment types. We distribute our services across a variety of channels to merchants and partners in 29 countries throughout North America, Europe, the Asia-Pacific region and Brazil. We provide payment and digital commerce solutions and operate in three reportable segments: North America, Europe and Asia-Pacific. Global Payments Inc. and its consolidated subsidiaries are referred to collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise. We were incorporated in Georgia as Global Payments Inc. in 2000 and spun-off from our former parent company in 2001 . Including our time as part of our former parent company, we have been in the payments business since 1967 . These 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 consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and present our financial position, results of operations, and cash flows. |
Use of estimates | Use of estimates — 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. |
Revenue recognition | Revenue recognition — Our three segments primarily provide payment solutions for credit cards, debit cards, electronic payments and check-related services. Revenue is recognized when such services are performed. Revenue for services provided directly to merchants is recorded net of interchange fees charged by card issuing banks. Our primary business model provides payment services directly to merchants as our customers. We also provide similar services indirectly through financial institutions and a limited number of independent sales organizations ("ISOs"). The majority of merchant services revenue is generated on services priced as a percentage of transaction value or a specified fee per transaction, depending on card type. We also charge other fees based on specific services that are unrelated to the number of transactions or the transaction value. Revenue from credit cards and signature debit cards is generally based on a percentage of transaction value along with other related fees, while revenue from PIN-based debit cards is typically based on a fee per transaction. |
Cash and cash equivalents | Cash and cash equivalents — Cash and cash equivalents include cash on hand and all liquid investments with an initial maturity of three months or less when purchased. Cash and cash equivalents include certain funds collected from our merchants that serve as collateral to minimize contingent liabilities associated with any losses that may occur under the merchant agreement ("Merchant Reserves"). We record a corresponding liability in settlement processing assets and settlement processing obligations in our consolidated balance sheet. While this cash is not restricted in its use, we believe that designating this cash as Merchant Reserves strengthens our fiduciary standing with banks that sponsor us and is in accordance with guidelines set by the card networks. As of May 31, 2015 and 2014 , our cash and cash equivalents included $180.2 million and $124.7 million , respectively, related to Merchant Reserves. Certain banks that serve as our Sponsor under the sponsorship model hold Merchant Reserves on our behalf. In these instances, neither the Merchant Reserve cash nor the corresponding liability appears on our consolidated balance sheet; however, we have access to the collateral in the event that we incur a merchant loss. During the year ended May 31, 2014 , we transferred a significant amount of merchant reserve cash to one of our member sponsors to whom we transferred a substantial portion of our processing volume. Our cash and cash equivalents include settlement-related cash balances. Settlement-related cash balances represent surplus funds that we hold when the incoming amount from the card networks precedes the funding obligation to the merchant. Settlement-related cash balances are not restricted; however, these funds are generally paid out in satisfaction of settlement processing obligations the following day. See "Note 2 - Settlement Processing Assets and Obligations" and discussion below for further information. |
Inventory | Inventory — Inventory, which includes electronic point of sale terminals, automated teller machines ("ATMs"), and related peripheral equipment, is stated at the lower of cost or fair value. Cost is determined using the average-cost method. |
Settlement processing assets and obligations | Settlement processing assets and obligations — Settlement processing assets and obligations represent intermediary balances arising in our settlement process for direct merchants. In accordance with Accounting Standards Codification ("ASC") Subtopic 210-20, Offsetting , we apply offsetting to our settlement processing assets and obligations where legal right of offset exists. See "Note 2 - Settlement Processing Assets and Obligations" for further information . |
Reserve for operating losses | Reserve for operating losses — Our merchant customers are liable for any charges or losses that occur under the merchant agreement. We experience losses in our card processing services when we are unable to collect amounts from merchant customers for any charges properly reversed by the card issuing banks. When we are not able to collect these amounts from the merchants due to merchant fraud, insolvency, bankruptcy or any other reason, we may be liable for the reversed charges. We have historically experienced losses due to merchant defaults. We require cash deposits or Merchant Reserves, guarantees, letters of credit and other types of collateral from certain merchants to minimize any such contingent liability, and we also utilize a number of systems and procedures to manage merchant risk. We experience check guarantee losses when we are unable to collect the full amount of a guaranteed check from the checkwriter. We refer to both merchant credit losses and check guarantee losses collectively as "operating losses." We record reserves for our estimated liability for operating losses. This estimate of losses is comprised of estimated known losses and estimated incurred but not reported losses. Estimated known losses arise from specific instances of, for example, merchant bankruptcies, closures or fraud of which we are aware at the balance sheet date, but for which the ultimate amount of associated loss will not be determined until after the balance sheet date. Estimated known loss accruals are recorded when it is probable that we have incurred a loss and the loss is reasonably estimable. Estimated known losses are calculated at the merchant level based on chargebacks received to date, processed volume, and historical chargeback ratios. The estimate is reduced for any collateral that we hold. Accruals for estimated known losses are evaluated periodically and adjusted as appropriate based on actual loss experience. Incurred but not reported losses result from transactions that we process before the balance sheet date for which we have not yet received chargeback notification. We estimate incurred but not reported losses by applying historical loss ratios to our direct merchant credit card and signature debit card sales volumes processed, or processed volume. As of May 31, 2015 and 2014 , the reserve for operating losses from merchant card processing services was $1.3 million and $1.7 million , respectively, and was included in settlement processing obligations in the consolidated balance sheets. For the years ended May 31, 2015 , 2014 and 2013 , the provision for merchant losses was $4.9 million , $8.7 million and $9.5 million , respectively, and was included in cost of service in the consolidated statements of income. In our check guarantee service offering, we charge our merchants a percentage of the gross amount of the check and guarantee payment of the check to the merchant in the event the check is not honored by the checkwriter's bank. We have the right to collect the full amount of the check from the checkwriter, but have not historically always recovered 100 % of the guaranteed checks. Our check guarantee loss reserve is comprised of estimated losses on returned checks and estimated incurred but not reported losses. We estimate the loss on returned checks by applying historical collection rates to our claims receivable balance. We estimate incurred but not reported losses by applying historical loss ratios to the face value of our guaranteed checks. As of May 31, 2015 and 2014 , we had a check guarantee loss reserve of $2.7 million and $3.0 million , respectively, which is included as a valuation allowance against claims receivable in the consolidated balance sheets. For the years ended May 31, 2015 , 2014 and 2013 , we recorded related expenses of $9.6 million , $11.9 million and $11.7 million , respectively, which were included in cost of service in the consolidated statements of income. The estimated check returns and recovery amounts are subject to the risk that actual amounts returned and recovered in the future may differ significantly from estimates used in calculating the receivable valuation allowance. As the potential for merchants’ failure to settle individual reversed charges from consumers in our merchant card processing offering and the timing of individual checks clearing the payors’ banks in our check guarantee offering are not predictable, it is not practicable to calculate the maximum amounts for which we could be liable under the guarantees issued under the merchant card processing and check guarantee service offerings. It is also not practicable to estimate the extent to which merchant collateral or subsequent collections of dishonored checks, respectively, would offset these exposures due to these same uncertainties. |
Property and equipment | Property and equipment — Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method, except for certain technology assets discussed below. Leasehold improvements are amortized over the lesser of the remaining term of the lease and the useful life of the asset. We develop software that is used in providing processing services to customers. Capitalization of internally developed software, primarily associated with operating platforms, occurs when we have completed the preliminary project stage, management authorizes the project, management commits to funding the project, and it is probable the project will be completed and used to perform the function intended. The preliminary project stage consists of the conceptual formulation of alternatives, the evaluation of alternatives, the determination of existence of needed technology and the final selection of alternatives. Costs incurred during the preliminary project stage are expensed as incurred. As of May 31, 2015 , we had placed into service $101.0 million of hardware and software associated with our most recently developed authorization platform. This platform serves as a front-end operating environment for merchant processing and is intended to replace a number of legacy platforms. Depreciation and amortization associated with these costs is calculated based on transactions processed during the period as a percentage of the transactions expected to be processed over the life of the platform. We believe that this method is more representative of the pattern of the benefit to be derived from the platform's use than the straight-line method. We are currently processing transactions on this authorization platform in nine markets in our Asia-Pacific region and for a limited number of U.S. merchants. As these markets represent a small percentage of our overall transactions, depreciation and amortization related to this platform for fiscal 2015 , 2014 and 2013 was not significant. Depreciation and amortization expense will increase as we complete migrations of additional merchants to this authorization platform. |
Goodwill and other intangible assets | Goodwill — We test goodwill for impairment at the reporting unit level annually as of January 1 and more often if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Macroeconomic factors such as general economic conditions, fluctuations in foreign currency exchange rates and other developments in equity and credit markets are monitored for indications that goodwill assigned to one of our reporting units may be impaired. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. The decision of whether to perform a qualitative assessment is made annually by reporting unit. When conducting a qualitative assessment, we consider factors including general macroeconomic conditions, industry and market conditions, cost factors, overall financial performance of our reporting units, events or changes affecting the composition or carrying amount of the net assets of our reporting units, sustained decrease in our share price, and other relevant entity-specific events. If we elect to bypass the qualitative assessment or if we determine, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, a two-step quantitative test is required. In the first step, the reporting unit's carrying amount, including goodwill, is compared to its estimated fair value. If the carrying amount of the reporting unit is greater than its fair value, step two must be performed to measure the amount of the impairment loss, if any. Step two measures the amount of the impairment loss by comparing the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined by assigning the fair value of the reporting unit to all the assets and liabilities of that unit (including unrecognized intangibles) as if the reporting unit had been acquired in a business combination. The excess of the fair value over the amounts assigned to the assets and liabilities of the reporting unit is the implied fair value of the goodwill. The excess, if any, of the carrying amount over the implied fair value of the goodwill would be the amount of the impairment loss. We have six reporting units: North America merchant services, U.K. merchant services, Asia-Pacific merchant services, Central and Eastern Europe merchant services, Russia merchant services and Spain merchant services. As of January 1, 2015 , we elected to perform a qualitative assessment of impairment for each of our reporting units, except Russia merchant services. We determined on the basis of qualitative factors, as described above, that the fair values of the reporting units for which we performed a qualitative assessment were not more likely than not less than their respective carrying amounts. Due to the deterioration of economic conditions in the Russian Federation, we elected to perform a quantitative assessment of impairment for the Russia merchant services reporting unit as of January 1, 2015 . Based on this quantitative assessment, we determined that goodwill of our Russia merchant services reporting unit was not impaired. Our assessment of qualitative factors involves significant judgments about expected future business performance and general market conditions. Significant changes in our assessment of such qualitative factors could affect our assessment of the fair value of one or more of our reporting units and could result in goodwill impairment charges in future periods. Other intangible assets — Other intangible assets primarily represent customer-related intangible assets (such as customer lists and merchant contracts), contract-based intangible assets (such as non-compete agreements, referral agreements and processing rights), acquired technologies, trademarks and trade names associated with acquisitions. Customer-related intangible assets, contract-based intangible assets, acquired technologies, trademarks and trade names are amortized over their estimated useful lives ranging from 2 to 26 years. The useful lives for customer-related intangible assets are determined based primarily on forecasted cash flows, which include estimates for the cash inflows, cash outflows and customer attrition associated with the assets. The useful lives of contract-based intangible assets are equal to the terms of the agreements. The useful lives of acquired technologies are based on our expectations for the remaining useful life of developed technology before it becomes substantially obsolete. The useful lives of amortizable trademarks and trade names are based on our plans to phase out the trademarks and trade names in the applicable markets. Amortization for most of our customer-related intangible assets is calculated using an accelerated method. In determining amortization expense under our accelerated method for any given period, we calculate the expected cash flows for that period that were used in determining the acquisition-date fair value of the asset and divide that amount by the expected total cash flows over the estimated life of the asset. We multiply that percentage by the initial carrying amount of the asset to arrive at the amortization expense for that period. If the cash flow patterns that we experience differ significantly from our initial estimates, we adjust the amortization schedule prospectively. These cash flow patterns are derived using certain assumptions and cost allocations due to a significant number of asset interdependencies that exist in our business. We believe that our accelerated method reflects the pattern of the benefit to be derived from the acquired customer relationships. We use the straight-line method of amortization for our contract-based intangibles, amortizable trademarks and trade names and acquired technologies. |
Impairment of long-lived assets | Impairment of long-lived assets — We regularly evaluate whether events and circumstances have occurred that indicate the carrying amount of property and equipment and finite-life intangible assets may not be recoverable. When factors indicate that these long-lived assets should be evaluated for possible impairment, we assess the potential impairment by determining whether the carrying amount of such long-lived assets will be recovered through the future undiscounted cash flows expected from use of the asset and its eventual disposition. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market prices or discounted cash flow analysis as applicable. We regularly evaluate whether events and circumstances have occurred that indicate the useful lives of property and equipment and finite-life intangible assets may warrant revision. |
Income taxes | Income taxes — Deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax laws and rates. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Derivative Instruments | Derivative instruments — We may use interest rate swaps or other derivative instruments to manage a portion of our exposure to the variability in interest rates. Our objective in managing our exposure to fluctuation in interest rates is to better control this element of cost and to mitigate the earnings and cash flow volatility associated with changes in applicable rates. We have established policies and procedures that encompass risk-management philosophy and objectives, guidelines for derivative instrument usage, counterparty credit approval, and the monitoring and reporting of derivative activity. We do not enter into derivative instruments for the purpose of speculation. We formally designate and document instruments at inception that qualify for hedge accounting of underlying exposures. When qualified for hedge accounting, these financial instruments are recognized at fair value in our consolidated balance sheets, and changes in fair value are recognized as a component of other comprehensive income and included in equity. Cash flows resulting from settlements are presented as a component of operating cash flows. We formally assess, both at inception and at least quarterly, whether the financial instruments used in hedging transactions are effective at offsetting changes in cash flows of the related underlying exposure. Fluctuations in the value of these instruments generally are offset by changes in the cash flows of the underlying exposures being hedged. This offset is driven by the high degree of effectiveness between the exposure being hedged and the hedging instrument. We designated our interest rate swap agreements as a cash flow hedge of interest payments on variable rate borrowings. Any ineffective portion of a change in the fair value of a qualifying instrument is immediately recognized in earnings. |
Fair value measurements | Fair value measurements — Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. GAAP establishes a fair value hierarchy that categorizes the inputs to valuation techniques into three broad levels. Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities. Level 2 inputs are based on other observable market data, such as quoted prices for similar assets and liabilities, and inputs other than quoted prices that are observable such as interest rates and yield curves. Level 3 inputs are developed from unobservable data reflecting our assumptions and include situations where there is little or no market activity for the asset or liability. |
Fair value of financial instruments | Fair value of financial instruments — The carrying amounts of financial instruments, including cash and cash equivalents, receivables, lines of credit, accounts payable and accrued liabilities, approximate their fair value given the short-term nature of these items. Our long-term debt includes variable interest rates based on the London Interbank Offered Rate ("LIBOR") , the Federal Funds Effective Rate (as defined in the debt agreements) or the prime rate, plus a margin based on our leverage position. At May 31, 2015 , the carrying amount of our long-term debt approximates fair value, which is calculated using Level 2 inputs. The fair value of our swap agreement was 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, and classified within Level 2 of the valuation hierarchy. See "Note 6 – Long-Term Debt and Credit Facilities" for further information. |
Foreign currencies | Foreign currencies — We have significant operations in a number of foreign subsidiaries whose functional currency is the local currency. The assets and liabilities of subsidiaries whose functional currency is a foreign currency are translated at the period-end rate of exchange. Income statement items are translated at the weighted-average rates prevailing during the period. The resulting translation adjustment is recorded as a component of other comprehensive income and is included in equity. Gains and losses on transactions denominated in currencies other than the functional currencies are generally included in determining net income for the period. For the years ended May 31, 2015 , 2014 and 2013 , our transaction gains and losses were insignificant. Transaction gains and losses on intercompany balances of a long-term investment nature are recorded as a component of other comprehensive income and included in equity. |
Earnings per share | Earnings per share — Basic earnings per share is computed by dividing reported net income attributable to Global Payments by the weighted-average number of shares outstanding during the period. Earnings available to common shareholders is the same as reported net income attributable to Global Payments for all periods presented. Diluted earnings per share is computed by dividing net income attributable to Global Payments by the weighted-average number of shares outstanding during the period, including the effect of share-based awards that would have a dilutive effect on earnings per share. All stock options with an exercise price lower than the average market share price of our common stock for the period are assumed to have a dilutive effect on earnings per share. |
Repurchased shares | Repurchased shares — We account for the retirement of repurchased shares using the par value method under which we allocate the cost of repurchased and retired shares between paid-in capital and retained earnings. The repurchase price is charged to paid-in capital up to the amount of the original issue proceeds of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. We use a last-in, first-out cost flow assumption to identify the original issue proceeds to the cost of the shares repurchased. Stock split — Our board of directors declared a two-for-one stock split effected in the form of a stock dividend of one additional share of common stock for each outstanding share of common stock (the "Stock Split"). The stock dividend was paid on November 2, 2015 to all shareholders of record as of October 21, 2015. Common share and per share data in the consolidated financial statements and in the notes to our consolidated financial statements for prior periods have been adjusted to reflect the Stock Split, except for authorized common shares which were not affected. |
New accounting pronouncements | New accounting pronouncements — From time-to-time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standards setting bodies that are adopted by us as of the specified effective date. Recently Adopted Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update ("ASU") 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ." To simplify the presentation of deferred income taxes, the amendments in this update require that deferred tax assets and liabilities be classified as noncurrent in a classified balance sheet. We adopted this ASU during the three months ended November 30, 2015 and, as a result, have presented the amounts for deferred income taxes in these financial statements in accordance with this ASU. The adoption of this standard was not material and did not affect our results of operations or cash flows in either the period of adoption or the previous interim or annual periods. In April 2015, the FASB issued ASU 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ." The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. In August 2015, the FASB issued ASU 2015-15, "Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting ," to clarify that an entity may elect to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We adopted both ASUs as of June 1, 2015, and elected to continue to present debt issuance costs related to our revolving credit facilities as an asset. As a result, we have presented debt issuance costs in accordance with these updates. The adoption of this standard was not material and did not affect our results of operations or cash flows in either the period of adoption or the previous interim or annual periods. In January 2015, the FASB issued ASU 2015-01, " Income Statement Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items." The amendments in this update eliminate from GAAP the concept of extraordinary items. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. We adopted ASU 2015-01 as of May 31, 2015. Adoption of ASU 2015-01 had no effect on our consolidated financial statements. In April 2014, the FASB issued ASU 2014-08, " Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." The amendments in ASU 2014-11 change the requirements for reporting discontinued operations in ASC Subtopic 205-20. The amendments change the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The amendments require expanded disclosures for discontinued operations and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. As permitted by the standards, we elected to early adopt the provision of ASU 2014-08 as of June 1, 2014 and have applied the provisions prospectively. Adoption of ASU 2014-08 did not have a material impact on our consolidated financial statements. Recently Issued Pronouncements Not Yet Adopted In April 2015, the FASB issued Accounting Standards Update ("ASU") 2015-05, " Intangibles - Goodwill and Other-Internal -Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement ." The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. The amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for all entities. We are evaluating the impact of ASU 2015-05 on our consolidated financial statements and have not yet adopted the new standard. In May 2014, the FASB issued ASU 2014-09, " Revenue from Contracts with Customers (Topic 606)." The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP and permits the use of either the retrospective or cumulative effect transition method. The standard requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. On July 9, 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year and permit early adoption but not before the original effective date of December 15, 2016. We are evaluating the impact of ASU 2014-09 on our consolidated financial statements. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table sets forth the computation of the diluted weighted-average number of shares outstanding for the years ended May 31, 2015 , 2014 and 2013 : 2015 2014 2013 (in thousands) Basic weighted-average shares outstanding 134,072 144,238 155,534 Plus: Dilutive effect of stock options and other share-based awards 850 1,138 920 Diluted weighted-average shares outstanding 134,922 145,376 156,454 |
Settlement Processing Assets 30
Settlement Processing Assets and Obligations (Tables) | 12 Months Ended |
May. 31, 2015 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | As of May 31, 2015 and 2014 , settlement processing assets and obligations consisted of the following: 2015 2014 (in thousands) Settlement processing assets: Interchange reimbursement $ 186,660 $ 217,806 Receivable from Members 294,837 206,322 Receivable from networks 1,919,148 430,763 Exception items 4,920 5,573 Merchant Reserves (10,743 ) (79,547 ) $ 2,394,822 $ 780,917 Settlement processing obligations: Interchange reimbursement $ 68,444 $ 54,459 Liability to Members (628 ) (5,490 ) Liability to merchants (1,931,390 ) (407,651 ) Exception items 5,331 6,313 Merchant Reserves (169,442 ) (96,622 ) Reserve for operating losses (1,286 ) (1,725 ) Reserve for sales allowances (4,929 ) (601 ) $ (2,033,900 ) $ (451,317 ) |
Business and Intangible Asset31
Business and Intangible Asset Acquisitions and Joint Ventures (Tables) | 12 Months Ended |
May. 31, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Business and Intangible Asset Acquisitions | In the years ended May 31, 2015 , 2014 , and 2013 , we acquired the following businesses and intangible assets: Date Acquired Percentage Ownership Fiscal 2015 Realex (Republic of Ireland) March 25, 2015 95 % Ezidebit (Australia) October 10, 2014 100 % Fiscal 2014 PayPros (United States) March 4, 2014 100 % Fiscal 2013 Banca Civica (Spain) December 12, 2012 100 % Accelerated Payment Technologies (United States) October 1, 2012 100 % |
Business Acquisition, Pro Forma Information | The following pro forma information shows the results of our operations for year ended May 31, 2013 as if the APT acquisition had occurred June 1, 2011. The pro forma information is presented for information purposes only and is not necessarily indicative of what would have occurred if the acquisition had been made as of that date. The pro forma information is also not intended to be a projection of future results due to the integration of the acquired business. Year Ended May 31, Unaudited 2013 2013 (Actual) (Pro forma) (in thousands, except per share data) Total revenues $ 2,375,923 $ 2,380,098 Net income attributable to Global Payments $ 216,125 $ 217,122 Net income per share attributable to Global Payments, basic $ 1.39 $ 1.40 Net income per share attributable to Global Payments, diluted $ 1.38 $ 1.39 The following pro forma information shows the results of our operations for year ended May 31, 2014 and May 31, 2013 as if the PayPros acquisition had occurred June 1, 2012. The pro forma information is presented for information purposes only and is not necessarily indicative of what would have occurred if the acquisition had been made as of that date. The pro forma information is also not intended to be a projection of future results due to the integration of the acquired business. Year Ended May 31, Unaudited 2014 2014 2013 2013 (Actual) (Pro forma) (Actual) (Pro forma) (in thousands, except per share data) Total revenues $ 2,554,236 $ 2,628,547 $ 2,375,923 $ 2,465,319 Net income attributable to Global Payments $ 245,286 $ 241,272 $ 216,125 $ 207,032 Net income per share attributable to Global Payments, basic $ 1.70 $ 1.68 $ 1.39 $ 1.33 Net income per share attributable to Global Payments, diluted $ 1.69 $ 1.66 $ 1.38 $ 1.33 |
Realex Payments | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair value of the assets acquired, liabilities assumed and the noncontrolling interest as of the acquisition date (in thousands): Cash $ 4,082 Customer-related intangible assets 16,079 Acquired technology 39,820 Trade name 3,453 Other intangible assets 399 Other assets 6,183 Liabilities (3,860 ) Deferred income tax liabilities (7,216 ) 58,940 Goodwill 67,220 Noncontrolling interest (7,280 ) Total purchase consideration $ 118,880 |
Ezidebit | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 45,826 Customer-related intangible assets 42,721 Acquired technology 27,954 Trade name 2,901 Other assets 4,152 Liabilities (49,797 ) 73,757 Goodwill 192,225 Total purchase consideration $ 265,982 |
PayPros | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Property and equipment $ 1,680 Customer-related intangible assets 147,500 Contract-based intangible assets 30,200 Acquired technology 10,800 Other assets 3,872 Deferred income tax liabilities (38,478 ) 155,574 Goodwill 270,878 Total purchase consideration $ 426,452 |
Banca Civica | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the identifiable assets acquired as of the acquisition date (in thousands): Customer-related intangible assets $ 4,576 Contract-based intangible assets 13,858 18,434 Goodwill 4,445 Total purchase consideration $ 22,879 |
Accelerated Payment Technologies (United States) | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Property and equipment $ 1,309 Acquired technology 15,000 Customer-related intangible assets 97,200 Contract-based intangible assets 30,600 Other assets 3,708 Deferred income tax liabilities (46,167 ) 101,650 Goodwill 308,518 Total purchase consideration $ 410,168 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
May. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | As of May 31, 2015 and 2014 , property and equipment consisted of the following: Range of Useful Lives (Years) 2015 2014 (in thousands) Land N/A $ 1,571 $ 1,942 Buildings 25-30 26,236 33,996 Equipment 2-10 197,186 204,102 Software 2-10 248,137 224,766 Leasehold improvements 3-15 20,458 19,399 Furniture and fixtures 3-7 3,705 3,809 Work in progress N/A 56,782 53,704 554,075 541,718 Less accumulated depreciation and amortization 179,932 171,965 $ 374,143 $ 369,753 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
May. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | As of May 31, 2015 and 2014 , goodwill and intangible assets consisted of the following: 2015 2014 (in thousands) Goodwill $ 1,491,833 $ 1,337,285 Other intangible assets: Customer-related intangible assets $ 718,011 $ 714,704 Trademarks and trade names 10,777 6,140 Acquired technology 93,194 25,700 Contract-based intangible assets 130,874 145,967 952,856 892,511 Less accumulated amortization: Customer-related intangible assets 342,488 317,629 Trademarks and trade names 4,437 4,147 Acquired technology 8,509 3,531 Contract-based intangible assets 37,286 32,031 392,720 357,338 $ 560,136 $ 535,173 |
Schedule of Goodwill | The following table sets forth the changes in the carrying amount of goodwill for the years ended May 31, 2015 and 2014 : North America Europe Asia-Pacific Total (in thousands) Balance at May 31, 2013 $ 519,175 $ 464,769 $ 60,278 $ 1,044,222 Accumulated impairment losses — — — — Balance at May 31, 2013 519,175 464,769 60,278 1,044,222 Goodwill acquired 271,577 — — 271,577 Effect of foreign currency translation (4,097 ) 26,269 (686 ) 21,486 Balance at May 31, 2014 786,655 491,038 59,592 1,337,285 Accumulated impairment losses — — — — Balance at May 31, 2014 786,655 491,038 59,592 1,337,285 Goodwill acquired 4,794 67,220 192,225 264,239 Effect of foreign currency translation (11,715 ) (72,337 ) (25,639 ) (109,691 ) Balance at May 31, 2015 779,734 485,921 226,178 1,491,833 Accumulated impairment losses — — — — Balance at May 31, 2015 $ 779,734 $ 485,921 $ 226,178 $ 1,491,833 |
Schedule of Expected Amortization Expense | The estimated amortization expense of acquired intangibles as of May 31, 2015 for the next five fiscal years, calculated using the exchange rate at the date of acquisition, if applicable, is as follows (in thousands): 2016 $ 76,295 2017 71,471 2018 65,004 2019 61,234 2020 55,889 |
Long-Term Debt and Credit Fac34
Long-Term Debt and Credit Facilities (Tables) | 12 Months Ended |
May. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | As of May 31, 2015 and 2014 , long-term debt consisted of the following: 2015 2014 (in thousands) Term loan (face amount of $1,234,375 and $1,250,000 at May 31, 2015 and 2014, respectively, less unamortized debt issuance costs of $2,433 and $3,172 at May 31, 2015 and 2014, respectively) $ 1,231,942 $ 1,246,828 Corporate credit facility 508,125 140,000 Notes payable — 3,679 Total long-term debt 1,740,067 1,390,507 Less current portion of long-term debt (face amount of $62,500 and $17,677 at May 31, 2015 and 2014, respectively, less unamortized debt issuance costs of $716 and $739 at May 31, 2015 and 2014, respectively) 61,784 16,938 Long-term debt, excluding current portion $ 1,678,283 $ 1,373,569 |
Schedule of Maturities of Long-Term Debt | Maturity requirements on long-term debt by fiscal year are as follows (in thousands): 2016 $ 62,500 2017 78,125 2018 125,000 2019 1,476,875 Total $ 1,742,500 |
Accounts Payable and Accrued 35
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
May. 31, 2015 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | As of May 31, 2015 and 2014 , accounts payable and accrued liabilities consisted of the following: 2015 2014 (in thousands) Trade accounts payable $ 22,836 $ 13,076 Compensation and benefits 57,238 61,193 Third party processing expenses 4,399 11,062 Commissions to third parties 63,737 66,551 Accrued fees and assessment expenses 39,417 51,649 Other 125,020 86,499 $ 312,647 $ 290,030 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
May. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes for the years ended May 31 , 2015 , 2014 and 2013 consisted of the following: 2015 2014 2013 (in thousands) Current income tax expense: Federal $ 25,022 $ 49,178 $ 16,326 State 3,905 3,856 987 Foreign (10,346 ) 48,075 36,020 18,581 101,109 53,333 Deferred income tax expense: Federal 14,822 1,568 26,302 State 3,606 1,206 3,568 Foreign 70,986 3,515 12,368 89,414 6,289 42,238 $ 107,995 $ 107,398 $ 95,571 |
Schedule of Income before Income Tax, Domestic and Foreign | The following presents income before income taxes for the years ended May 31 , 2015 , 2014 and 2013 : 2015 2014 2013 (in thousands) United States $ 135,901 $ 153,453 $ 137,501 Foreign 281,209 223,897 196,783 $ 417,110 $ 377,350 $ 334,284 |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rates for the years ended May 31, 2015 , 2014 and 2013 , respectively, differ from the federal statutory rate as follows: 2015 2014 2013 Federal U.S. statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 1.1 0.9 0.9 Foreign income taxes (8.5 ) (7.2 ) (7.0 ) Foreign interest income not subject to tax (1.8 ) (2.1 ) (2.8 ) Tax credits and other 1.0 3.1 3.7 Effective tax rate attributable to Global Payments 26.8 29.7 29.8 Effective tax rate allocated to noncontrolling interests (0.9 ) (1.2 ) (1.2 ) Effective tax rate 25.9 % 28.5 % 28.6 % |
Schedule of Deferred Tax Assets and Liabilities | As of May 31, 2015 and 2014 , principal components of deferred tax items were as follows: 2015 2014 (in thousands) Deferred income tax assets: Basis difference - U.K. business $ 24,520 $ 96,720 Foreign income tax credit carryforward 14,172 11,819 Foreign net operating loss carryforward 2,330 6,881 U.S. net operating loss carryforward 6,927 22,074 Share-based compensation expense 7,727 5,916 Other 8,636 6,266 64,312 149,676 Less valuation allowance (3,823 ) (7,199 ) 60,489 142,477 Deferred income tax liabilities: Acquired intangible assets 147,239 149,440 Property and equipment 63,957 53,238 Taxes on unremitted earnings and other 4,992 5,470 Foreign currency translation 14,659 26,813 Other 2,069 1,800 232,916 236,761 Net deferred income tax liability $ (172,427 ) $ (94,284 ) The net deferred income tax liability is reflected on our consolidated balance sheets as of May 31, 2015 and 2014 as follows: 2015 2014 (in thousands) Noncurrent deferred income tax asset 30,428 101,940 Noncurrent deferred income tax liability (202,855 ) (196,224 ) $ (172,427 ) $ (94,284 ) |
Summary of Valuation Allowance | Changes to our valuation allowance during the years ended May 31, 2015 and 2014 are summarized below (in thousands): Balance at May 31, 2013 $ (28,464 ) Utilization of foreign net operating loss carryforwards 2,822 Allowance for foreign tax credit carryforward 18,061 Other 382 Balance at May 31, 2014 (7,199 ) Utilization of foreign net operating loss carryforwards 3,387 Other (11 ) Balance at May 31, 2015 $ (3,823 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amounts of unrecognized income tax benefits, excluding penalties and interest, for the years ended May 31, 2015 , 2014 , and 2013 is as follows: 2015 2014 2013 (in thousands) Balance at the beginning of the year $ 67,576 $ 53,763 $ 45,595 Additions based on income tax positions related to the current year 6,311 8,551 8,778 Additions for income tax positions of prior years 512 296 142 Foreign currency impact for income tax positions (5,713 ) 5,303 (601 ) Reductions for income tax positions of prior years (32 ) (60 ) (151 ) Settlements with income tax authorities (504 ) (277 ) — Changes in judgment regarding tax position (65,591 ) — — Balance at the end of the year $ 2,559 $ 67,576 $ 53,763 |
Share-Based Awards and Options
Share-Based Awards and Options (Tables) | 12 Months Ended |
May. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes share-based compensation expense and the related income tax benefit recognized for stock options, restricted stock, performance units, TSR units, and shares issued under our employee stock purchase plan (each as described below). 2015 2014 2013 (in millions) Share-based compensation expense $ 21.1 $ 29.8 $ 18.4 Income tax benefit $ (6.9 ) $ (7.1 ) $ (5.6 ) |
Schedule of Changes in Non-Vested Restricted Stock Awards Activity | The following table summarizes the changes in unvested share-based awards for the years ended May 31, 2015 and 2014 (shares in thousands): Shares Weighted-Average Unvested at May 31, 2013 2,192 $ 22.00 Granted 1,088 23.55 Vested (1,286 ) 22.31 Forfeited (240 ) 22.40 Unvested at May 31, 2014 1,754 22.72 Granted 954 36.21 Vested (648 ) 23.17 Forfeited (212 ) 27.03 Unvested at May 31, 2015 1,848 $ 28.97 |
Schedule of Share-based Compensation, Stock Options, Activity | The following is a summary of our stock option activity as of and for the years ended May 31, 2015 and 2014 : Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at May 31, 2013 3,530 $ 17.55 3.5 $ 23.9 Granted — — Forfeited (130 ) 19.04 Exercised (1,868 ) 15.20 Outstanding at May 31, 2014 1,532 20.36 3.8 21.3 Granted 306 35.78 Forfeited (48 ) 27.42 Exercised (896 ) 20.15 Outstanding at May 31, 2015 894 $ 25.47 5.2 $ 23.9 Options vested and exercisable at May 31, 2015 618 $ 20.88 3.5 $ 19.4 Options vested and exercisable at May 31, 2014 1,450 $ 20.42 3.6 $ 20.1 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average grant-date fair value of each stock option granted during the year ended May 31, 2015 was $ 8.45 . Fair value was estimated on the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions: Risk-free interest rate 1.57 % Expected volatility 23.65 % Dividend yield 0.13 % Expected life (years) 5 |
Supplemental Cash Flow Inform38
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
May. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow disclosures for the years ended May 31, 2015 , 2014 , and 2013 are as follows: 2015 2014 2013 (in thousands) Supplemental cash flow information: Income taxes paid, net of refunds $ 66,726 $ 94,938 $ 55,218 Interest paid (1) $ 36,537 $ 33,214 $ 29,677 (1) Includes distributions to HSBC Asia of $3.3 million and $8.4 million in fiscal 2014 and fiscal 2013, respectively, which were characterized as interest expense pursuant to ASC 480. See "Note 3 - Business and Intangible Asset Acquisitions and Joint Ventures." |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
May. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Schedule of Net Income Reconciliation | For the years ended May 31, 2015 , 2014 and 2013 , net income included in the consolidated statements of changes in equity is reconciled to net income presented in the consolidated statements of income as follows: 2015 2014 2013 (in thousands) Net income attributable to Global Payments $ 278,040 $ 245,286 $ 216,125 Net income attributable to nonredeemable noncontrolling interests 31,075 24,666 20,774 Subtotal per statement of changes in equity 309,115 269,952 236,899 Net income attributable to redeemable noncontrolling interest — — 1,814 Net income $ 309,115 $ 269,952 $ 238,713 The following table is the reconciliation of net income attributable to noncontrolling interests to comprehensive income attributable to noncontrolling interests for the years ended May 31, 2015 and May 31, 2014 : 2015 2014 2013 (in thousands) Net income attributable to noncontrolling interests, net of tax $ 31,075 $ 24,666 $ 22,588 Foreign currency translation attributable to nonredeemable noncontrolling interests (28,597 ) 7,054 7,217 Foreign currency translation attributable to redeemable noncontrolling interest — — 573 Comprehensive income attributable to noncontrolling interests, net of tax $ 2,478 $ 31,720 $ 30,378 |
Schedule of Components of Redeemable Noncontrolling Interests | The following table details the components of redeemable noncontrolling interest for the year ended May 31, 2013 : 2013 (in thousands) Beginning balance $ 144,422 Net income attributable to redeemable noncontrolling interest 1,814 Foreign currency translation adjustment 573 Decrease in the maximum redemption amount of redeemable noncontrolling interest (817 ) Derecognition of redeemable noncontrolling interest (145,992 ) Ending balance $ — |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
May. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the accumulated balances for each component of other comprehensive loss were as follows for the years ended May 31 , 2015 , 2014 and 2013 : Foreign Currency Translation Unrealized Losses on Hedging Activities Defined Benefit Pension Plans Accumulated Other Comprehensive Loss (in thousands) Balance at May 31, 2012 $ (24,951 ) $ — $ (5,049 ) $ (30,000 ) Other comprehensive income, net of income tax 13,421 — 1,517 14,938 Balance at May 31, 2013 (11,530 ) — (3,532 ) (15,062 ) Other comprehensive income, net of income tax 13,113 — 173 13,286 Balance at May 31, 2014 1,583 — (3,359 ) (1,776 ) Other comprehensive loss, net of income tax (179,892 ) (3,874 ) (450 ) (184,216 ) Balance at May 31, 2015 $ (178,309 ) $ (3,874 ) $ (3,809 ) $ (185,992 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
May. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, By Segment | Information on segments, including revenue by geographic distribution within segments, and reconciliations to consolidated revenues and consolidated operating income are as follows for the years ended May 31, 2015 , 2014 , and 2013 : 2015 2014 2013 (in thousands) Revenues: North America $ 1,968,890 $ 1,808,992 $ 1,705,675 Europe 615,966 587,463 522,593 Asia-Pacific (2) 188,862 157,781 147,655 Consolidated revenues $ 2,773,718 $ 2,554,236 $ 2,375,923 Operating income (loss): North America $ 293,139 $ 272,251 $ 258,910 Europe (1) 240,014 209,334 179,570 Asia-Pacific (2) 39,697 30,845 31,672 Corporate (3) (116,253 ) (106,931 ) (112,939 ) Consolidated operating income $ 456,597 $ 405,499 $ 357,213 Depreciation and amortization: North America $ 81,051 $ 60,970 $ 48,882 Europe 39,910 48,589 51,018 Asia-Pacific (2) 9,973 6,139 6,502 Corporate 6,571 6,371 5,386 Consolidated depreciation and amortization $ 137,505 $ 122,069 $ 111,788 (1) During the year ended May 31, 2015 , operating income for the Europe segment includes a $2.9 million gain on the sale of a component of our Russia business that leased automated teller machines to our sponsor bank in Russia. The gain is presented in selling, general and administrate expenses in the consolidated statements of income. (2) The results of Ezidebit are included in the Asia-Pacific segment from the date of acquisition, October 10, 2014 . (3) Includes a processing system intrusion credit of $7.0 million in fiscal 2014 and a charge of $36.8 million in fiscal 2013. |
Schedule of Breakdown of Long-Lived Assets by Geographic Regions | Long-lived assets, excluding goodwill and other intangible assets, by location as of May 31, 2015 and 2014 were as follows: 2015 2014 (in thousands) United States $ 284,257 $ 259,457 Foreign countries 89,886 110,296 $ 374,143 $ 369,753 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
May. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for All Noncancelable Leases | Future minimum lease payments for noncancelable operating leases at May 31, 2015 were as follows (in thousands): Fiscal years ending May 31: 2016 $ 13,878 2017 11,089 2018 9,226 2019 7,760 2020 6,873 Thereafter 9,172 Total future minimum lease payments $ 57,998 |
Quarterly Consolidated Financ43
Quarterly Consolidated Financial Information (Tables) | 12 Months Ended |
May. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly results for the years ended May 31, 2015 and 2014 are as follows (in thousands, except per share data): Quarter Ended August 31 November 30 February 28 May 31 Fiscal 2015 Revenues $ 704,895 $ 697,291 $ 664,983 $ 706,549 Operating income 124,398 123,984 104,615 103,600 Net income 84,434 85,256 69,315 70,110 Net income attributable to Global Payments 75,366 74,781 62,568 65,325 Basic earnings per share attributable to Global Payments 0.55 0.55 0.47 0.50 Diluted earnings per share attributable to Global Payments 0.55 0.55 0.46 0.49 Quarter Ended August 31 November 30 February 28 May 31 Fiscal 2014 Revenues $ 629,685 $ 634,122 $ 616,452 $ 673,977 Operating income 107,384 111,907 97,291 88,917 Net income 71,708 79,857 60,121 58,266 Net income attributable to Global Payments 64,643 73,897 55,121 51,625 Basic earnings per share attributable to Global Payments 0.44 0.51 0.38 0.37 Diluted earnings per share attributable to Global Payments 0.44 0.51 0.38 0.36 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Business, Consolidation and Presentation (Details) | 12 Months Ended |
May. 31, 2015segmentCountry | |
Accounting Policies [Abstract] | |
Number of countries | Country | 29 |
Number of reportable segments | segment | 3 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
May. 31, 2015segment | |
Accounting Policies [Abstract] | |
Number of merchant services segments | 3 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | May. 31, 2015 | May. 31, 2014 |
Cash and Cash Equivalents [Line Items] | ||
Settlement processing assets | $ 2,394,822 | $ 780,917 |
Cash and Cash Equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Settlement processing assets | $ 180,200 | $ 124,700 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Reserve for Operating Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | May. 31, 2012 | |
Allowance For Operating Losses | ||||
Accounting Policies [Abstract] | ||||
Settlement Liabilities, Reserves | $ 1,286 | $ 1,725 | ||
Allowance For Uncollectible Customer's Liability - Merchant Card Processing Services | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation and allowance reserve | 1,286 | 1,724 | $ 2,318 | $ 2,325 |
Valuation and allowance charges | 4,928 | 8,658 | 9,484 | |
Reserve for Operating Losses-Check Guarantee Processing | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation and allowance reserve | 2,684 | 2,998 | 3,144 | $ 3,435 |
Valuation and allowance charges | 9,578 | 11,916 | $ 11,731 | |
Other Receivables, Net, Current | Reserve for Operating Losses-Check Guarantee Processing | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation and allowance reserve | $ 2,700 | $ 3,000 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Property and Equipment (Details) $ in Thousands | 12 Months Ended | |
May. 31, 2015USD ($)market | May. 31, 2014USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 554,075 | $ 541,718 |
Authorization platform number of markets | market | 9 | |
Authorization Platform Hardware and Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 101,000 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Goodwill and Other Intangible assets (Details) | 12 Months Ended |
May. 31, 2015segment | |
Finite-Lived Intangible Assets [Line Items] | |
Number of reporting units | 6 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 2 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 26 years |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Earnings per share (Details) - shares shares in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Basic weighted-average shares outstanding | 134,072 | 144,238 | 155,534 |
Plus: Dilutive effect of stock options and other share-based awards | 850 | 1,138 | 920 |
Diluted weighted-average shares outstanding | 134,922 | 145,376 | 156,454 |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 600 |
Settlement Processing Assets 51
Settlement Processing Assets and Obligations (Details) - USD ($) $ in Thousands | May. 31, 2015 | May. 31, 2014 |
Offsetting Assets [Line Items] | ||
Total | $ 2,394,822 | $ 780,917 |
Settlement processing obligations | 2,033,900 | 451,317 |
Merchant Reserves | ||
Offsetting Assets [Line Items] | ||
Merchant Reserves | (10,743) | (79,547) |
Settlement Liabilities, Reserves | 169,442 | 96,622 |
Allowance For Operating Losses | ||
Offsetting Assets [Line Items] | ||
Settlement Liabilities, Reserves | 1,286 | 1,725 |
Allowance for Trade Receivables | ||
Offsetting Assets [Line Items] | ||
Settlement Liabilities, Reserves | 4,929 | 601 |
Interchange reimbursement | ||
Offsetting Assets [Line Items] | ||
Settlement processing assets | 186,660 | 217,806 |
Settlement processing obligations | (68,444) | (54,459) |
(Liability To) Receivable From Members | ||
Offsetting Assets [Line Items] | ||
Settlement processing assets | 294,837 | 206,322 |
Settlement processing obligations | 628 | 5,490 |
Liability to Merchants | ||
Offsetting Assets [Line Items] | ||
Settlement processing obligations | 1,931,390 | 407,651 |
Receivables From Card Networks | ||
Offsetting Assets [Line Items] | ||
Settlement processing assets | 1,919,148 | 430,763 |
Exception items | ||
Offsetting Assets [Line Items] | ||
Settlement processing assets | 4,920 | 5,573 |
Settlement processing obligations | $ (5,331) | $ (6,313) |
Business and Intangible Asset52
Business and Intangible Asset Acquisitions and Joint Ventures - Assets and Liabilities Acquired (Details) $ in Thousands, AUD in Millions | Dec. 17, 2014USD ($) | Oct. 10, 2014USD ($) | Oct. 10, 2014AUD | Sep. 30, 2014USD ($) | Mar. 04, 2014USD ($) | Oct. 01, 2012USD ($) | Jun. 01, 2015customer | May. 31, 2015USD ($) | Mar. 25, 2015USD ($) | May. 31, 2014USD ($) | May. 31, 2013USD ($) | Dec. 12, 2012USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 1,491,833 | $ 1,337,285 | $ 1,044,222 | |||||||||
Ezidebit | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash | $ 45,826 | |||||||||||
Other assets | 4,152 | |||||||||||
Liabilities | (49,797) | |||||||||||
Total assets acquired | 73,757 | |||||||||||
Goodwill | 192,225 | |||||||||||
Net assets acquired | 265,982 | |||||||||||
Payments to Acquire Businesses, Gross | 266,000 | AUD 302.6 | ||||||||||
Ezidebit | Customer-related intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | 42,721 | |||||||||||
Ezidebit | Technology-based intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | 27,954 | |||||||||||
Ezidebit | Trade names | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | $ 2,901 | |||||||||||
PayPros | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fixed assets | $ 1,680 | |||||||||||
Other assets | 3,872 | |||||||||||
Deferred income taxes | (38,478) | |||||||||||
Total assets acquired | 155,574 | |||||||||||
Goodwill | 270,878 | |||||||||||
Net assets acquired | 426,452 | |||||||||||
Payments to Acquire Businesses, Gross | 426,500 | |||||||||||
PayPros | Customer-related intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | 147,500 | |||||||||||
PayPros | Contract-based intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | 30,200 | |||||||||||
PayPros | Technology-based intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | $ 10,800 | |||||||||||
Realex Payments | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash | $ 4,082 | |||||||||||
Other Noncontrolling Interests | (7,280) | |||||||||||
Other assets | 6,183 | |||||||||||
Liabilities | (3,860) | |||||||||||
Deferred income taxes | (7,216) | |||||||||||
Total assets acquired | 58,940 | |||||||||||
Goodwill | 67,220 | |||||||||||
Net assets acquired | 118,880 | |||||||||||
Realex Payments | Customer-related intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | 16,079 | |||||||||||
Realex Payments | Technology-based intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | 39,820 | |||||||||||
Realex Payments | Trade names | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | 3,453 | |||||||||||
Realex Payments | Other Intangible Assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net assets acquired | $ 399 | |||||||||||
Banca Civica | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total assets acquired | $ 18,434 | |||||||||||
Goodwill | 4,445 | |||||||||||
Net assets acquired | 22,879 | |||||||||||
Banca Civica | Customer-related intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | 4,576 | |||||||||||
Banca Civica | Contract-based intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | $ 13,858 | |||||||||||
Accelerated Payment Technologies (United States) | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fixed assets | $ 1,309 | |||||||||||
Other assets | 3,708 | |||||||||||
Deferred income taxes | (46,167) | |||||||||||
Total assets acquired | 101,650 | |||||||||||
Goodwill | 308,518 | |||||||||||
Net assets acquired | 410,168 | |||||||||||
Payments to Acquire Businesses, Gross | 410,200 | |||||||||||
Accelerated Payment Technologies (United States) | Customer-related intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | 97,200 | |||||||||||
Accelerated Payment Technologies (United States) | Contract-based intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | 30,600 | |||||||||||
Accelerated Payment Technologies (United States) | Technology-based intangible assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired intangible assets | $ 15,000 | |||||||||||
Fidelity Information Services’ (FIS) Check Gaming Guarantee business | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of Customers Acquired | customer | 260 | |||||||||||
Payments to Acquire Businesses, Gross | $ 237,500 | |||||||||||
Global Payments Asia-Pacific Philippines Incorporated | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to Acquire Businesses, Gross | $ 3,600 | |||||||||||
Global Payments Asia-Pacific Philippines Incorporated | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% |
Business and Intangible Asset53
Business and Intangible Asset Acquisitions and Joint Ventures - Pro Forma Information - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Business Acquisition [Line Items] | |||||||||||
Basic earnings per share attributable to Global Payments (in dollars per share) | $ 0.50 | $ 0.47 | $ 0.55 | $ 0.55 | $ 0.37 | $ 0.38 | $ 0.51 | $ 0.44 | $ 2.07 | $ 1.70 | $ 1.39 |
Diluted earnings per share attributable to Global Payments (in dollars per share) | $ 0.49 | $ 0.46 | $ 0.55 | $ 0.55 | $ 0.36 | $ 0.38 | $ 0.51 | $ 0.44 | $ 2.06 | $ 1.69 | $ 1.38 |
PayPros | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total revenues, Actual | $ 2,554,236 | $ 2,375,923 | |||||||||
Total revenues, Pro forma | 2,628,547 | 2,465,319 | |||||||||
Net income attributable to Global Payments, Actual | 245,286 | 216,125 | |||||||||
Net income attributable to Global Payments, Pro forma | $ 241,272 | $ 207,032 | |||||||||
Basic earnings per share attributable to Global Payments (in dollars per share) | $ 1.70 | $ 1.39 | |||||||||
Net income per share attributable to Global Payments, basic, Pro forma (in dollars per share) | 1.68 | 1.33 | |||||||||
Diluted earnings per share attributable to Global Payments (in dollars per share) | 1.69 | 1.38 | |||||||||
Net income per share attributable to Global Payments, diluted, Pro forma (in dollars per share) | $ 1.66 | $ 1.33 | |||||||||
Accelerated Payment Technologies | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total revenues, Actual | $ 2,375,923 | ||||||||||
Total revenues, Pro forma | $ 2,380,098 | ||||||||||
Net income attributable to Global Payments, Actual | $ 216,125 | ||||||||||
Net income attributable to Global Payments, Pro forma | $ 217,122 | ||||||||||
Basic earnings per share attributable to Global Payments (in dollars per share) | $ 1.39 | ||||||||||
Net income per share attributable to Global Payments, basic, Pro forma (in dollars per share) | $ 1.40 | ||||||||||
Diluted earnings per share attributable to Global Payments (in dollars per share) | $ 1.38 | ||||||||||
Net income per share attributable to Global Payments, diluted, Pro forma (in dollars per share) | $ 1.39 |
Business and Intangible Asset54
Business and Intangible Asset Acquisitions and Joint Ventures - Narrative (Details) $ in Thousands, € in Millions, AUD in Millions | Jul. 27, 2015USD ($)Country | Jul. 27, 2015EUR (€)Country | Mar. 25, 2015USD ($) | Mar. 25, 2015EUR (€) | Dec. 17, 2014USD ($) | Oct. 10, 2014USD ($) | Oct. 10, 2014AUD | Sep. 30, 2014USD ($) | Mar. 04, 2014USD ($) | Sep. 30, 2013USD ($) | Dec. 12, 2012USD ($) | Dec. 12, 2012EUR (€) | Oct. 01, 2012USD ($) | Jul. 26, 2012USD ($) | May. 31, 2015USD ($) | May. 31, 2014USD ($) | May. 31, 2013USD ($) | Jun. 01, 2015customer |
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 1,491,833 | $ 1,337,285 | $ 1,044,222 | |||||||||||||||
Net proceeds from sales of investments and business | 10,597 | 3,607 | 1,227 | |||||||||||||||
Remaining noncontrolling interest purchased by parent | 0 | 0 | 242,000 | |||||||||||||||
Global Payments Asia-Pacific Philippines Incorporated | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% | |||||||||||||||||
Ownership percentage by noncontrolling owners | 49.00% | |||||||||||||||||
Comercia Global Payments | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Ownership percentage by noncontrolling owners | 49.00% | |||||||||||||||||
Commercia Global Payments Brazil | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Net proceeds from sales of investments and business | $ 2,100 | |||||||||||||||||
Ownership percentage by noncontrolling owners | 50.00% | |||||||||||||||||
Payments to Acquire Other Investments | $ 11,400 | |||||||||||||||||
Global Payments Asia Pacific Limited | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Remaining noncontrolling interest purchased by parent | $ 242,000 | |||||||||||||||||
Ownership percentage by noncontrolling owners | 44.00% | |||||||||||||||||
Reduction accounted for in equity | $ 96,000 | |||||||||||||||||
Interest expense | $ 3,300 | $ 8,400 | ||||||||||||||||
Minimum | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 2 years | |||||||||||||||||
Maximum | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 26 years | |||||||||||||||||
Realex Payments | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of controlling financial interest acquired | 95.00% | |||||||||||||||||
Business acquisition, transaction costs | $ 1,200 | |||||||||||||||||
Goodwill | 67,220 | |||||||||||||||||
Ezidebit | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of controlling financial interest acquired | 100.00% | |||||||||||||||||
Cash paid | $ 266,000 | AUD 302.6 | ||||||||||||||||
Goodwill | $ 192,225 | |||||||||||||||||
Fidelity Information Services’ (FIS) Check Gaming Guarantee business | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | $ 237,500 | |||||||||||||||||
Number of Customers Acquired | customer | 260 | |||||||||||||||||
Services Agreement, Term | 10 years | |||||||||||||||||
Global Payments Asia-Pacific Philippines Incorporated | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | $ 3,600 | |||||||||||||||||
PayPros | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of controlling financial interest acquired | 100.00% | |||||||||||||||||
Cash paid | $ 426,500 | |||||||||||||||||
Goodwill | $ 270,878 | |||||||||||||||||
Banca Civica | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of controlling financial interest acquired | 100.00% | |||||||||||||||||
Goodwill | $ 4,445 | |||||||||||||||||
Consideration transferred | $ 22,900 | € 17.5 | ||||||||||||||||
Accelerated Payment Technologies (United States) | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of controlling financial interest acquired | 100.00% | |||||||||||||||||
Cash paid | $ 410,200 | |||||||||||||||||
Goodwill | $ 308,518 | |||||||||||||||||
Contract-based and customer-related finite-lived intangible assets | Realex Payments | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 16 years | |||||||||||||||||
Contract-based and customer-related finite-lived intangible assets | Ezidebit | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 15 years | |||||||||||||||||
Trade names | Realex Payments | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 7 years | |||||||||||||||||
Trade names | Ezidebit | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 5 years | |||||||||||||||||
Customer-related intangible assets | PayPros | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 13 years | |||||||||||||||||
Customer-related intangible assets | Banca Civica | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 10 years | |||||||||||||||||
Customer-related intangible assets | Accelerated Payment Technologies (United States) | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 12 years | |||||||||||||||||
Contract-based intangible assets | PayPros | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 13 years | |||||||||||||||||
Contract-based intangible assets | Banca Civica | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 18 years | |||||||||||||||||
Contract-based intangible assets | Accelerated Payment Technologies (United States) | Minimum | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 1 year 6 months | |||||||||||||||||
Contract-based intangible assets | Accelerated Payment Technologies (United States) | Maximum | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 10 years | |||||||||||||||||
Technology-based intangible assets | Realex Payments | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 10 years | |||||||||||||||||
Technology-based intangible assets | Ezidebit | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 15 years | |||||||||||||||||
Technology-based intangible assets | PayPros | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 7 years | |||||||||||||||||
Technology-based intangible assets | Accelerated Payment Technologies (United States) | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite-lived intangible asset, useful life | 8 years | |||||||||||||||||
Euro | Realex Payments | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | € | € 110.2 | |||||||||||||||||
United States of America, Dollars | Realex Payments | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | $ 118,900 | |||||||||||||||||
Subsequent Event | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of countries in which joint venture operates | Country | 3 | 3 | ||||||||||||||||
Subsequent Event | Global Payments and Caixa Bank Joint Venture | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Ownership percentage of joint venture | 51.00% | 51.00% | ||||||||||||||||
Subsequent Event | Global Payments, CaixaBank S.A., and Erste Group Bank AG Joint Venture | Global Payments and Caixa Bank Joint Venture | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Ownership percentage of joint venture | 51.00% | 51.00% | ||||||||||||||||
Payments to acquire interest in joint venture | $ 33,000 | € 30 | ||||||||||||||||
Subsequent Event | Global Payments, CaixaBank S.A., and Erste Group Bank AG Joint Venture | Erste Group | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Ownership percentage of joint venture | 49.00% | 49.00% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 554,075 | $ 541,718 | |
Less accumulated depreciation and amortization of property and equipment | 179,932 | 171,965 | |
Property and equipment, net | 374,143 | 369,753 | |
Depreciation and amortization expense of property and equipment | 64,918 | 60,124 | $ 55,023 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 1,571 | 1,942 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 26,236 | $ 33,996 | |
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives in Years | 25 years | 25 years | |
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives in Years | 30 years | 30 years | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 197,186 | $ 204,102 | |
Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives in Years | 2 years | 2 years | |
Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives in Years | 10 years | 10 years | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 248,137 | $ 224,766 | |
Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives in Years | 2 years | 5 years | |
Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives in Years | 10 years | 10 years | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 20,458 | $ 19,399 | |
Leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives in Years | 3 years | 5 years | |
Leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives in Years | 15 years | 15 years | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 3,705 | $ 3,809 | |
Furniture and fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives in Years | 3 years | 5 years | |
Furniture and fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives in Years | 7 years | 7 years | |
Work in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 56,782 | $ 53,704 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | May. 31, 2015 | May. 31, 2014 | May. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 1,491,833 | $ 1,337,285 | $ 1,044,222 |
Other intangible assets: | 952,856 | 892,511 | |
Less accumulated amortization: | 392,720 | 357,338 | |
Other intangible assets, net | 560,136 | 535,173 | |
Customer-related intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets: | 718,011 | 714,704 | |
Less accumulated amortization: | 342,488 | 317,629 | |
Trademarks and trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets: | 10,777 | 6,140 | |
Less accumulated amortization: | 4,437 | 4,147 | |
Acquired technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets: | 93,194 | 25,700 | |
Less accumulated amortization: | 8,509 | 3,531 | |
Contract-based intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets: | 130,874 | 145,967 | |
Less accumulated amortization: | $ 37,286 | $ 32,031 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Goodwill [Roll Forward] | |||
Goodwill, gross | $ 1,491,833 | $ 1,337,285 | $ 1,044,222 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill, balance at beginning of period | 1,337,285 | 1,044,222 | |
Goodwill acquired | 264,239 | 271,577 | |
Effect of foreign currency translation | (109,691) | 21,486 | |
Goodwill, balance at end of period | 1,491,833 | 1,337,285 | |
North America | |||
Goodwill [Roll Forward] | |||
Goodwill, gross | 779,734 | 786,655 | 519,175 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill, balance at beginning of period | 786,655 | 519,175 | |
Goodwill acquired | 4,794 | 271,577 | |
Effect of foreign currency translation | (11,715) | (4,097) | |
Goodwill, balance at end of period | 779,734 | 786,655 | |
Europe Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, gross | 485,921 | 491,038 | 464,769 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill, balance at beginning of period | 491,038 | 464,769 | |
Goodwill acquired | 67,220 | 0 | |
Effect of foreign currency translation | (72,337) | 26,269 | |
Goodwill, balance at end of period | 485,921 | 491,038 | |
Asia Pacific Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, gross | 226,178 | 59,592 | 60,278 |
Accumulated impairment losses | 0 | 0 | $ 0 |
Goodwill, balance at beginning of period | 59,592 | 60,278 | |
Goodwill acquired | 192,225 | 0 | |
Effect of foreign currency translation | (25,639) | (686) | |
Goodwill, balance at end of period | $ 226,178 | $ 59,592 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Goodwill [Line Items] | |||
Amortization expense of acquired intangibles | $ 72,587 | $ 61,945 | $ 56,765 |
Customer-related intangible assets | |||
Goodwill [Line Items] | |||
Intangible assets weighted average amortization periods | 15 years 1 month 6 days | 13 years 2 months 24 days | |
Contract-based intangible assets | |||
Goodwill [Line Items] | |||
Intangible assets weighted average amortization periods | 13 years 2 months 18 days | ||
Technology-based intangible assets | |||
Goodwill [Line Items] | |||
Intangible assets weighted average amortization periods | 9 years 1 month 6 days | 6 years 6 months | |
Trademarks and Trade Names | |||
Goodwill [Line Items] | |||
Intangible assets weighted average amortization periods | 6 years 1 month 6 days |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets - Schedule of Future Intangible Asset Amortization Expense (Details) $ in Thousands | May. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,016 | $ 76,295 |
2,017 | 71,471 |
2,018 | 65,004 |
2,019 | 61,234 |
2,020 | $ 55,889 |
Long-Term Debt and Credit Fac60
Long-Term Debt and Credit Facilities - Schedule of Outstanding Debt (Details) - USD ($) | May. 31, 2015 | May. 31, 2014 | Feb. 28, 2014 |
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 62,500,000 | $ 17,677,000 | |
Term loan and corporate credit facility | 1,740,067,000 | ||
Total | 1,742,500,000 | 1,390,507,000 | |
Current portion of long-term debt | 61,784,000 | 16,938,000 | |
Long-term debt | 1,678,283,000 | 1,373,569,000 | |
Unamortized Debt Issuance Expense | 716,000 | 739,000 | |
Term loans | |||
Debt Instrument [Line Items] | |||
Term loan and corporate credit facility | 1,231,942,000 | 1,246,828,000 | |
Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | 0 | 3,679,000 | |
Five Year Unsecured Term Loan Due February 2019 | Term loans | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 1,234,375,000 | 1,250,000,000 | $ 1,250,000,000 |
Unamortized Debt Issuance Expense | 2,433,000 | 3,172,000 | |
Corporate Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Term loan and corporate credit facility | 508,125,000 | 140,000,000 | |
Accounts Payable and Accrued Liabilities | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Derivative, Notional Amount | $ 500,000,000 | $ 500,000,000 |
Long-Term Debt and Credit Fac61
Long-Term Debt and Credit Facilities - Schedule of Maturity Requirements On Outstanding Debt (Details) - USD ($) $ in Thousands | May. 31, 2015 | May. 31, 2014 |
Debt Disclosure [Abstract] | ||
2,016 | $ 62,500 | |
2,017 | 78,125 | |
2,018 | 125,000 | |
2,019 | 1,476,875 | |
Total | $ 1,742,500 | $ 1,390,507 |
Long-Term Debt and Credit Fac62
Long-Term Debt and Credit Facilities - Narrative (Details) | Feb. 28, 2014USD ($) | May. 31, 2015USD ($) | May. 31, 2014USD ($) | May. 31, 2013USD ($) | Aug. 31, 2014 |
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 62,500,000 | $ 17,677,000 | |||
Extinguishment of debt | 2,100,000 | ||||
Debt issuance cost | $ 6,000,000 | ||||
Reclassification of losses on hedging activities to interest expense | (3,958,000) | 0 | $ 0 | ||
Interest expense, debt | 39,900,000 | 37,500,000 | 31,700,000 | ||
Unamortized Debt Issuance Expense | 716,000 | 739,000 | |||
Corporate Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Lines of credit facility, available borrowings | $ 484,300,000 | 851,900,000 | |||
Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant, Leverage Ratio, Minimum | 0 | ||||
Debt instrument, covenant, leverage ratio, maximum | 0 | ||||
Minimum interest coverage ratio | 0 | ||||
Unsecured Debt | Five Year Unsecured Term Loan Due February 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt term | 5 years | ||||
Debt Instrument, Face Amount | $ 1,250,000,000 | $ 1,234,375,000 | 1,250,000,000 | ||
Interest rate at period end | 1.94% | ||||
Debt instrument, periodic principal payment, minimum | 1.25% | ||||
Debt instrument, periodic principal payment, maximum | 2.50% | ||||
Debt instrument, periodic payment terms, principal to be paid prior to balloon payment at maturity, percentage | 27.50% | ||||
Unamortized Debt Issuance Expense | $ 2,433,000 | 3,172,000 | |||
Unsecured Debt | Five Year Unsecured Term Loan Due February 2019 | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Variable rate basis | LIBOR | ||||
Unsecured Debt | 5 Year Unsecured Term Loan Due September 2017 | |||||
Debt Instrument [Line Items] | |||||
Gains (losses) on extinguishment of debt | (2,100,000) | ||||
Line of Credit | Revolving Credit Facility Expiring February 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt term | 5 years | ||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||
Line of Credit | Revolving Credit Facility Expiring February 2019 | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate at period end | 1.90% | ||||
Standby Letters of Credit | Corporate Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Corporate credit facility - long-term | 7,600,000 | 8,100,000 | |||
Maximum | Standby Letters of Credit | Corporate Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Corporate credit facility - long-term | 100,000,000 | ||||
Line of Credit | Revolving Credit Facility Expiring December 2015 | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of debt | 290,000,000 | ||||
Unsecured Debt | 5 Year Unsecured Term Loan Due September 2017 | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of debt | $ 612,500,000 | ||||
Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Derivative, amount of hedged item | $ 500,000,000 | ||||
Not designated as hedging instrument | Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Derivative, fixed interest rate | 1.52% | ||||
Accounts Payable and Accrued Liabilities | |||||
Debt Instrument [Line Items] | |||||
Cash flow hedge derivative instrument liabilities at fair value | $ 6,200,000 | ||||
Accounts Payable and Accrued Liabilities | Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Derivative, Notional Amount | $ 500,000,000 | 500,000,000 | |||
Global Payments Asia Pacific Limited | |||||
Debt Instrument [Line Items] | |||||
Interest expense | $ 3,300,000 | $ 8,400,000 | |||
Line of Credit | Corporate Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant, Leverage Ratio, Minimum | 0 | ||||
Debt instrument, covenant, leverage ratio, maximum | 0 | ||||
Minimum interest coverage ratio | 0 | ||||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,258,700,000 | ||||
Lines of credit facility, available borrowings | $ 567,500,000 | ||||
Short term debt, weighted average interest rate | 1.50% | 1.70% | |||
Repayments of lines of credit | $ 193,200,000 | ||||
Short-term Debt | 592,600,000 | $ 440,100,000 | |||
Line of credit facility, average outstanding amount | $ 647,300,000 |
Accounts Payable and Accrued 63
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | May. 31, 2015 | May. 31, 2014 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade accounts payable | $ 22,836 | $ 13,076 |
Compensation and benefits | 57,238 | 61,193 |
Third party processing expenses | 4,399 | 11,062 |
Commissions to third parties | 63,737 | 66,551 |
Accrued fees and assessment expenses | 39,417 | 51,649 |
Other | 125,020 | 86,499 |
Accounts payable and accrued liabilities | $ 312,647 | $ 290,030 |
Income Tax - Components of Inco
Income Tax - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Current tax expense: | |||
Federal | $ 25,022 | $ 49,178 | $ 16,326 |
State | 3,905 | 3,856 | 987 |
Foreign | (10,346) | 48,075 | 36,020 |
Current tax expense | 18,581 | 101,109 | 53,333 |
Deferred income tax expense: | |||
Federal | 14,822 | 1,568 | 26,302 |
State | 3,606 | 1,206 | 3,568 |
Foreign | 70,986 | 3,515 | 12,368 |
Deferred tax expense | 89,414 | 6,289 | 42,238 |
Provision for income taxes | $ 107,995 | $ 107,398 | $ 95,571 |
Income Tax - Income Before Inco
Income Tax - Income Before Income Taxes, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 135,901 | $ 153,453 | $ 137,501 |
Foreign | 281,209 | 223,897 | 196,783 |
Income before income taxes | $ 417,110 | $ 377,350 | $ 334,284 |
Income Tax - Reconciliation (De
Income Tax - Reconciliation (Details) | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal U.S. statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 1.10% | 0.90% | 0.90% |
Foreign income taxes | (8.50%) | (7.20%) | (7.00%) |
Foreign interest income not subject to tax | (1.80%) | (2.10%) | (2.80%) |
Tax credits and other | 1.00% | 3.10% | 3.70% |
Effective tax rate attributable to Global Payments | 26.80% | 29.70% | 29.80% |
Effective tax rate allocated to noncontrolling interests | (0.90%) | (1.20%) | (1.20%) |
Effective tax rate | 25.90% | 28.50% | 28.60% |
Income Tax - Deferred Tax Asset
Income Tax - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | May. 31, 2015 | May. 31, 2014 | May. 31, 2013 |
Deferred income tax assets: | |||
Basis difference - U.K. business | $ 24,520 | $ 96,720 | |
Foreign income tax credit | 14,172 | 11,819 | |
Foreign net operating loss (NOL) carryforward | 2,330 | 6,881 | |
U.S. net operating loss carryforward | 6,927 | 22,074 | |
Share-based compensation expense | 7,727 | 5,916 | |
Other | 8,636 | 6,266 | |
Deferred tax assets, gross | 64,312 | 149,676 | |
Less valuation allowance | (3,823) | (7,199) | $ (28,464) |
Net deferred tax asset | 60,489 | 142,477 | |
Deferred income tax liabilities: | |||
Acquired intangible assets | 147,239 | 149,440 | |
Property and equipment | 63,957 | 53,238 | |
Taxes on unremitted earnings and other | 4,992 | 5,470 | |
Foreign currency translation | 14,659 | 26,813 | |
Other | 2,069 | 1,800 | |
Deferred tax liabilities, gross | 232,916 | 236,761 | |
Deferred Tax Liabilities, Net | $ (172,427) | $ (94,284) |
Income Tax - Net Deferred Tax A
Income Tax - Net Deferred Tax Asset and Liability (Details) - USD ($) $ in Thousands | May. 31, 2015 | May. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Noncurrent deferred income tax asset | $ 30,428 | $ 101,940 |
Noncurrent deferred income tax liability | (202,855) | (196,224) |
Net non-current deferred income tax liability | $ 172,427 | $ 94,284 |
Income Tax - Change in Valuatio
Income Tax - Change in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Movement in Deferred Tax Valuation Allowance [Roll Forward] | ||
Valuation allowance, beginning of period | $ (7,199) | $ (28,464) |
Valuation allowance, end of period | (3,823) | (7,199) |
Other | ||
Movement in Deferred Tax Valuation Allowance [Roll Forward] | ||
Valuation allowance, change | (11) | 382 |
Foreign Tax Authority | Utilization of foreign net operating loss carryforwards | ||
Movement in Deferred Tax Valuation Allowance [Roll Forward] | ||
Valuation allowance, change | $ 3,387 | 2,822 |
Foreign Tax Authority | Allowance for foreign tax credit carryforward | ||
Movement in Deferred Tax Valuation Allowance [Roll Forward] | ||
Valuation allowance, change | $ 18,061 |
Income Tax - Unrecognized Tax B
Income Tax - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the year | $ 67,576 | $ 53,763 | $ 45,595 |
Additions based on income tax positions related to the current year | 6,311 | 8,551 | 8,778 |
Additions for income tax positions of prior years | 512 | 296 | 142 |
Foreign currency impact for income tax positions | (5,713) | 5,303 | (601) |
Reductions for income tax positions of prior years | (32) | (60) | (151) |
Settlements with income tax authorities | (504) | (277) | 0 |
Changes in judgment regarding tax position | (65,591) | 0 | 0 |
Balance at the end of the year | $ 2,559 | $ 67,576 | $ 53,763 |
Income Tax - Narrative (Details
Income Tax - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | May. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | ||||
Income tax expense (benefit) allocated to noncontrolling interest | $ 8,600 | $ 5,200 | $ 4,200 | |
Capital Loss Carryforwards | 8,400 | |||
Deferred tax liability not recognized | 696,900 | |||
Unrecognized tax benefits | 2,559 | $ 67,576 | $ 53,763 | $ 45,595 |
Unrecognized that would impact effective tax rate | 2,600 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 12,400 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 19,800 | |||
Capital Loss Carryforward | Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Capital Loss Carryforwards | 4,700 | |||
Interest and Other Expense | ||||
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized tax benefits, interest on income taxes | $ 3,600 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Jun. 16, 2015 | Apr. 14, 2015 | Apr. 10, 2015 | Oct. 07, 2013 | May. 31, 2015 | May. 31, 2014 | May. 31, 2013 |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 302,300,000 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 102,900,000 | ||||||
ASR program, authorized amount | $ 100,000,000 | $ 100,000,000 | $ 125,000,000 | ||||
Stock repurchase program, estimated stock repurchase and retirement, in next period | $ 100,000,000 | ||||||
Repurchase of common stock (in shares) | 1,630,988 | 3,200,000 | 1,955,730 | 5,000,000 | |||
Stock repurchased and retired, value | $ 369,082,000 | $ 455,046,000 | $ 175,349,000 | ||||
Accelerated share repurchases, final price paid per share | $ 30.48 | $ 51.13 | $ 24.57 | ||||
Other Than Accelerated Share Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Repurchase of common stock (in shares) | 7,000,000 | 12,400,000 | 2,200,000 | ||||
Stock repurchased and retired, value | $ 269,000,000 | $ 355,000,000 | $ 50,300,000 | ||||
Treasury stock acquired, average cost per share (in dollars per share) | $ 38.19 | $ 28.65 | $ 22.28 | ||||
Subsequent Event | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Repurchase of common stock (in shares) | 324,742 |
Share-Based Awards and Option73
Share-Based Awards and Options - Share Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | May. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 21.1 | $ 29.8 | $ 18.4 | |
Income tax benefit | $ (6.9) | $ (7.1) | $ (5.6) | |
Stock Option Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance (in shares) | 14,000,000 |
Share-Based Awards and Option74
Share-Based Awards and Options - Restricted Stock and Performance Units Narrative (Details) | 12 Months Ended | ||
May. 31, 2015typeshares | May. 31, 2014shares | May. 31, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 306,366 | 0 | 0 |
Restricted Stock and Restricted Stock Units | One Year Increment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | ||
Performance Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of types of performance units offered | type | 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 1 year | ||
Performance Restricted Stock Units | One Year Increment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Performance Restricted Stock Units | Three Year Equal Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 75.00% | ||
Performance Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target shares of company stock | 200.00% | ||
Leveraged Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award performance period | 3 years | ||
Leveraged Performance Units | Share-based Compensation Award, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% | ||
Leveraged Performance Units | Share-based Compensation Award, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% | ||
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion of Stock, Shares Converted | 0.33 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion of Stock, Shares Converted | 0.66 | ||
Granted Before Fiscal 2015 [Member] | Restricted Stock and Restricted Stock Units | Share-based Compensation Award, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Granted Before Fiscal 2015 [Member] | Restricted Stock and Restricted Stock Units | Share-based Compensation Award, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Granted Before Fiscal 2015 [Member] | Restricted Stock and Restricted Stock Units | Share-based Compensation Award, Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Granted Before Fiscal 2015 [Member] | Restricted Stock and Restricted Stock Units | Share-based Compensation Award, Tranche Four | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Granted Fiscal 2015 [Member] | Restricted Stock and Restricted Stock Units | Share-based Compensation Award, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Granted Fiscal 2015 [Member] | Restricted Stock and Restricted Stock Units | Share-based Compensation Award, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Granted Fiscal 2015 [Member] | Restricted Stock and Restricted Stock Units | Share-based Compensation Award, Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% |
Share-Based Awards and Option75
Share-Based Awards and Options - Restricted Stock Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | Aug. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Share-based compensation expense | $ 21.1 | $ 29.8 | $ 18.4 | |
Total Shareholder Return Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award performance period | 3 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, beginning of period (in shares) | 1,754 | 2,192 | ||
Granted (in shares) | 954 | 1,088 | ||
Vested (in shares) | (648) | (1,286) | ||
Forfeited (in shares) | (212) | (240) | ||
Nonvested, end of period (in shares) | 1,848 | 1,754 | 2,192 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Nonvested, Weighted Average Grant-Date Fair Value, beginning of period (in dollars per share) | $ 22.72 | $ 22 | ||
Granted, Weighted Average Grant-Date Fair Value (in dollars per share) | 36.21 | 23.55 | ||
Vested, Weighted Average Grant-Date Fair Value (in dollars per share) | 23.17 | 22.31 | ||
Forfeited, Weighted Average Grant-Date Fair Value (in dollars per share) | 27.03 | 22.40 | ||
Nonvested, Weighted Average Grant-Date Fair Value, end of period (in dollars per share) | $ 28.97 | $ 22.72 | $ 22 | |
Total fair value of share awards vested in period | $ 15 | $ 28.7 | $ 13.6 | |
Share-based compensation expense | $ 19.8 | $ 28.2 | $ 16.2 | |
Total unrecognized compensation cost | $ 41.3 | |||
Total unrecognized compensation cost, weighted average period | 2 years 1 month 6 days | |||
Maximum | Total Shareholder Return Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Target shares of company stock | 200.00% | |||
One Year Increment [Member] | Restricted Stock and Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years |
Share-based Awards and Option76
Share-based Awards and Options - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 21,100,000 | $ 29,800,000 | $ 18,400,000 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock authorized (in shares) | 4.8 | ||
Maximum employee subscription amount | $ 25,000 | ||
Maximum employee subscription rate | 20.00% | ||
Discounted market value | 85.00% | ||
Shares issued in period (in shares) | 2.2 | ||
Shares reserved for future issuance (in shares) | 2.6 | ||
Share-based compensation expense | $ 600,000 | $ 60,000 | $ 60,000 |
Weighted average grant-date fair value (in dollars per share) | $ 4 | $ 3.57 | $ 3.225 |
Discount from market price | 15.00% |
Share-Based Awards and Option77
Share-Based Awards and Options - Stock Options Narrative (Details) - USD ($) $ / shares in Thousands, $ in Millions | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 306,366 | 0 | 0 |
Share-based compensation expense | $ 21.1 | $ 29.8 | $ 18.4 |
Aggregate intrinsic value of stock options exercised | 16.6 | 24.9 | 6.3 |
Total unrecognized compensation cost | $ 1.6 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair market value, percentage | 100.00% | ||
Stock option term | 10 years | ||
Vesting period | 4 years | ||
Share-based compensation expense | $ 0.7 | $ 1 | $ 1.7 |
Total unrecognized compensation cost, weighted average period | 3 years 6 months 7 days | ||
Stock Option Plan 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 0 |
Share-Based Awards and Option78
Share-Based Awards and Options - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 1,532,000 | 3,530,000 | |
Granted (in shares) | 306,366 | 0 | 0 |
Forfeited (in shares) | (48,000) | (130,000) | |
Exercised (in shares) | (896,000) | (1,868,000) | |
Outstanding, end of period (in shares) | 894,000 | 1,532,000 | 3,530,000 |
Options vested and exercisable (in shares) | 618,000 | 1,450,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, Weighted Average Exercise Price, beginning of period (in dollars per share) | $ 20.36 | $ 17.55 | |
Granted, Weighted Average Exercise Price (in dollars per share) | 35.78 | 0 | |
Forfeited, Weighted Average Exercise Price (in dollars per share) | 27.42 | 19.04 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 20.15 | 15.20 | |
Outstanding, Weighted Average Exercise Price, end of period (in dollars per share) | 25.47 | 20.36 | $ 17.55 |
Options vested and exercisable, Weighted Average Exercise Price (in dollars per share) | $ 20.88 | $ 20.42 | |
Weighted-Average Remaining Contractual Term | |||
Outstanding, Weighted Average Remaining Contractual Term | 5 years 2 months 8 days | 3 years 9 months 18 days | 3 years 6 months |
Options vested and exercisable, Weighted Average Remaining Contractual Term | 3 years 6 months | 3 years 7 months 6 days | |
Aggregate Intrinsic Value | |||
Outstanding, Aggregate Intrinsic Value | $ 23.9 | $ 21.3 | $ 23.9 |
Options vested and exercisable, Aggregate Intrinsic Value | $ 19.4 | $ 20.1 |
Share-Based Awards and Option79
Share-Based Awards and Options - Schedule of Valuation (Details) - Employee Stock Option | 12 Months Ended |
May. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.57% |
Expected volatility | 23.65% |
Dividend yield | 0.13% |
Expected life (years) | 5 years |
Supplemental Cash Flow Inform80
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Supplemental Cash Flow Information [Line Items] | |||
Income taxes paid, net of refunds | $ 66,726 | $ 94,938 | $ 55,218 |
Interest paid | $ 36,537 | 33,214 | 29,677 |
Global Payments Asia Pacific Limited | |||
Supplemental Cash Flow Information [Line Items] | |||
Interest paid | $ 3,300 | $ 8,400 |
Noncontrolling Interests - Reco
Noncontrolling Interests - Reconciliation of Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Noncontrolling Interest [Abstract] | |||||||||||
Net income attributable to Global Payments | $ 65,325 | $ 62,568 | $ 74,781 | $ 75,366 | $ 51,625 | $ 55,121 | $ 73,897 | $ 64,643 | $ 278,040 | $ 245,286 | $ 216,125 |
Net income attributable to nonredeemable noncontrolling interests | 31,075 | 24,666 | 20,774 | ||||||||
Subtotal per statement of changes in equity | 309,115 | 269,952 | 236,899 | ||||||||
Net income attributable to redeemable noncontrolling interest | 0 | 0 | 1,814 | ||||||||
Net income | $ 70,110 | $ 69,315 | $ 85,256 | $ 84,434 | $ 58,266 | $ 60,121 | $ 79,857 | $ 71,708 | $ 309,115 | $ 269,952 | $ 238,713 |
Noncontrolling Interests - Re82
Noncontrolling Interests - Reconciliation of Net Income Attributable to Non Controlling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Noncontrolling Interest [Abstract] | |||
Net income attributable to noncontrolling interests, net of tax | $ 31,075 | $ 24,666 | $ 22,588 |
Foreign currency translation attributable to nonredeemable noncontrolling interests | (28,597) | 7,054 | 7,217 |
Foreign currency translation attributable to redeemable noncontrolling interest | 0 | 0 | 573 |
Comprehensive income attributable to noncontrolling interests, net of tax | $ 2,478 | $ 31,720 | $ 30,378 |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning balance | $ 0 | $ 144,422 | |
Net income attributable to redeemable noncontrolling interest | $ 0 | $ 0 | 1,814 |
Foreign currency translation adjustment | 573 | ||
Decrease in the maximum redemption amount of redeemable noncontrolling interest | (817) | ||
Derecognition of redeemable noncontrolling interest | 145,992 | ||
Ending balance | $ 0 |
Accumulated Other Comprehensi84
Accumulated Other Comprehensive Income - Schedule of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning balance | $ 1,132,799 | $ 1,286,607 | $ 1,300,921 |
Other comprehensive loss, net of tax | (212,813) | 20,340 | 22,728 |
Balance, ending balance | 863,553 | 1,132,799 | 1,286,607 |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning balance | 1,583 | (11,530) | (24,951) |
Other comprehensive loss, net of tax | (179,892) | 13,113 | 13,421 |
Balance, ending balance | (178,309) | 1,583 | (11,530) |
Unrealized Losses on Hedging Activities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning balance | 0 | 0 | 0 |
Other comprehensive loss, net of tax | (3,874) | 0 | 0 |
Balance, ending balance | (3,874) | 0 | 0 |
Defined Benefit Pension Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning balance | (3,359) | (3,532) | (5,049) |
Other comprehensive loss, net of tax | (450) | 173 | 1,517 |
Balance, ending balance | (3,809) | (3,359) | (3,532) |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning balance | (1,776) | (15,062) | (30,000) |
Other comprehensive loss, net of tax | (184,216) | 13,286 | 14,938 |
Balance, ending balance | $ (185,992) | $ (1,776) | $ (15,062) |
Accumulated Other Comprehensi85
Accumulated Other Comprehensive Income (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Other comprehensive income, foreign currency transaction and translation adjustment, net of tax | $ (28.6) | $ 7.1 | $ 7.2 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | ||
May. 31, 2015USD ($)segment | May. 31, 2014USD ($) | May. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Processing system intrusion charge (credit) | $ | $ 0 | $ (7,000) | $ 36,775 |
Number of Operating Segments | segment | 6 | ||
Sales Revenue, Net | Geographic Concentration Risk | United States | |||
Segment Reporting Information [Line Items] | |||
Entity-Wide Disclosure on Geographic Areas, Basis for Attributing Revenue to Countries | 60.00% | 58.00% | 59.00% |
Sales Revenue, Net | Geographic Concentration Risk | Canada | |||
Segment Reporting Information [Line Items] | |||
Entity-Wide Disclosure on Geographic Areas, Basis for Attributing Revenue to Countries | 11.00% | 13.00% | 13.00% |
Sales Revenue, Net | Geographic Concentration Risk | United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Entity-Wide Disclosure on Geographic Areas, Basis for Attributing Revenue to Countries | 13.00% | 13.00% | 12.00% |
Operating Segments [Member] | International merchant services | Europe | |||
Segment Reporting Information [Line Items] | |||
Income from Sale of Component | $ | $ 2,900 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segments by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 706,549 | $ 664,983 | $ 697,291 | $ 704,895 | $ 673,977 | $ 616,452 | $ 634,122 | $ 629,685 | $ 2,773,718 | $ 2,554,236 | $ 2,375,923 |
Operating income (loss) for segments | $ 103,600 | $ 104,615 | $ 123,984 | $ 124,398 | $ 88,917 | $ 97,291 | $ 111,907 | $ 107,384 | 456,597 | 405,499 | 357,213 |
Depreciation and amortization | 137,505 | 122,069 | 111,788 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) for segments | (116,253) | (106,931) | (112,939) | ||||||||
Depreciation and amortization | 6,571 | 6,371 | 5,386 | ||||||||
North America [Member] | Operating Segments [Member] | North America Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,968,890 | 1,808,992 | 1,705,675 | ||||||||
Operating income (loss) for segments | 293,139 | 272,251 | 258,910 | ||||||||
Depreciation and amortization | 81,051 | 60,970 | 48,882 | ||||||||
Europe | Operating Segments [Member] | Europe Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 615,966 | 587,463 | 522,593 | ||||||||
Operating income (loss) for segments | 240,014 | 209,334 | 179,570 | ||||||||
Depreciation and amortization | 39,910 | 48,589 | 51,018 | ||||||||
Europe | Operating Segments [Member] | Asia Pacific Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 188,862 | 157,781 | 147,655 | ||||||||
Asia-Pacific(2) | Operating Segments [Member] | Asia Pacific Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) for segments | 39,697 | 30,845 | 31,672 | ||||||||
Depreciation and amortization | $ 9,973 | $ 6,139 | $ 6,502 |
Segment Information - Schedule
Segment Information - Schedule of Assets by Region (Details) - USD ($) $ in Thousands | May. 31, 2015 | May. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | $ 374,143 | $ 369,753 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | 284,257 | 259,457 |
Foreign countries | ||
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | $ 89,886 | $ 110,296 |
Commitments and Contingencies -
Commitments and Contingencies - Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense on operating leases | $ 17,500 | $ 16,000 | $ 16,500 |
2,016 | 13,878 | ||
2,017 | 11,089 | ||
2,018 | 9,226 | ||
2,019 | 7,760 | ||
2,020 | 6,873 | ||
Thereafter | 9,172 | ||
Total future minimum lease payments | $ 57,998 |
Processing System Intrusion (De
Processing System Intrusion (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Unusual Items [Abstract] | |||
Cumulated expenses | $ 114,200 | ||
Insurance recoveries | 27,000 | ||
Processing system intrusion | $ 0 | $ (7,000) | $ 36,775 |
Quarterly Consolidated Financ91
Quarterly Consolidated Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | Mar. 25, 2015 | |
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
Revenues | $ 706,549 | $ 664,983 | $ 697,291 | $ 704,895 | $ 673,977 | $ 616,452 | $ 634,122 | $ 629,685 | $ 2,773,718 | $ 2,554,236 | $ 2,375,923 | |
Operating income | 103,600 | 104,615 | 123,984 | 124,398 | 88,917 | 97,291 | 111,907 | 107,384 | 456,597 | 405,499 | 357,213 | |
Net income | 70,110 | 69,315 | 85,256 | 84,434 | 58,266 | 60,121 | 79,857 | 71,708 | 309,115 | 269,952 | 238,713 | |
Net income attributable to Global Payments | $ 65,325 | $ 62,568 | $ 74,781 | $ 75,366 | $ 51,625 | $ 55,121 | $ 73,897 | $ 64,643 | $ 278,040 | $ 245,286 | $ 216,125 | |
Basic earnings per share attributable to Global Payments (in dollars per share) | $ 0.50 | $ 0.47 | $ 0.55 | $ 0.55 | $ 0.37 | $ 0.38 | $ 0.51 | $ 0.44 | $ 2.07 | $ 1.70 | $ 1.39 | |
Diluted earnings per share attributable to Global Payments (in dollars per share) | $ 0.49 | $ 0.46 | $ 0.55 | $ 0.55 | $ 0.36 | $ 0.38 | $ 0.51 | $ 0.44 | $ 2.06 | $ 1.69 | $ 1.38 | |
Severance costs | $ 6,300 | |||||||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 6,800 | 14,300 | ||||||||||
Realex Payments | ||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
Business acquisition, transaction costs | $ 1,200 | |||||||||||
Interest and Other Expense | ||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||
Unrecognized tax benefits, interest on income taxes | $ 3,600 | $ 3,600 |
Schedule II Valuation and Qua92
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Allowance for doubtful accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
(b) Balance at Beginning of Year | $ 401 | $ 509 | $ 532 |
(c) Additions: Charged to Costs and Expenses | 324 | 174 | 444 |
(d) Deductions: Uncollectible Accounts Write-Off | 257 | 282 | 467 |
(e) Balance at End of Year | 468 | 401 | 509 |
Allowance For Uncollectible Customer's Liability - Merchant Card Processing Services | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
(b) Balance at Beginning of Year | 1,724 | 2,318 | 2,325 |
(c) Additions: Charged to Costs and Expenses | 4,928 | 8,658 | 9,484 |
(d) Deductions: Uncollectible Accounts Write-Off | 5,366 | 9,252 | 9,491 |
(e) Balance at End of Year | 1,286 | 1,724 | 2,318 |
Reserve for sales allowances-Merchant card processing | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
(b) Balance at Beginning of Year | 601 | 961 | 873 |
(c) Additions: Charged to Costs and Expenses | 7,974 | 1,330 | 2,074 |
(d) Deductions: Uncollectible Accounts Write-Off | 3,646 | 1,690 | 1,986 |
(e) Balance at End of Year | 4,929 | 601 | 961 |
Reserve for Operating Losses-Check Guarantee Processing | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
(b) Balance at Beginning of Year | 2,998 | 3,144 | 3,435 |
(c) Additions: Charged to Costs and Expenses | 9,578 | 11,916 | 11,731 |
(d) Deductions: Uncollectible Accounts Write-Off | 9,892 | 12,062 | 12,022 |
(e) Balance at End of Year | 2,684 | 2,998 | 3,144 |
Deferred tax asset valuation allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
(b) Balance at Beginning of Year | 7,199 | 28,464 | 26,090 |
(c) Additions: Charged to Costs and Expenses | (3,376) | (21,265) | 2,374 |
(d) Deductions: Uncollectible Accounts Write-Off | 0 | 0 | 0 |
(e) Balance at End of Year | $ 3,823 | $ 7,199 | $ 28,464 |