Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Aug. 31, 2016 | Oct. 03, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | GLOBAL PAYMENTS INC | |
Entity Central Index Key | 1,123,360 | |
Current Fiscal Year End Date | --05-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (shares) | 153,697,386 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Income Statement [Abstract] | ||
Revenues | $ 939,492 | $ 748,796 |
Operating expenses: | ||
Cost of service | 462,626 | 272,666 |
Selling, general and administrative | 355,760 | 338,358 |
Total costs and expenses | 818,386 | 611,024 |
Operating income | 121,106 | 137,772 |
Other income (expense): | ||
Interest and other income | 42,473 | 1,142 |
Interest and other expense | (43,077) | (13,243) |
Total nonoperating income (expense) | (604) | (12,101) |
Income before income taxes | 120,502 | 125,671 |
Provision for income taxes | (28,044) | (32,623) |
Net income | 92,458 | 93,048 |
Less: Net income attributable to noncontrolling interests, net of income tax | (7,365) | (6,402) |
Net income attributable to Global Payments | $ 85,093 | $ 86,646 |
Earnings per share attributable to Global Payments: | ||
Basic earnings per share (in USD per share) | $ 0.55 | $ 0.66 |
Diluted earnings per share (in USD per share) | $ 0.55 | $ 0.66 |
UNAUDITED CONSOLIDATED STATEME3
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 92,458 | $ 93,048 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (18,781) | (37,017) |
Income tax benefit related to foreign currency translation adjustments | 0 | 11,100 |
Unrealized losses on hedging activities | (3,205) | (32) |
Reclassification of losses on hedging activities to interest expense | 1,897 | 1,734 |
Income tax benefit (expense) related to hedging activities | 518 | (622) |
Other | 108 | 0 |
Other comprehensive loss, net of tax | (19,463) | (24,837) |
Comprehensive income | 72,995 | 68,211 |
Comprehensive income attributable to noncontrolling interests | (7,363) | (8,300) |
Comprehensive income attributable to Global Payments | $ 65,632 | $ 59,911 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 31, 2016 | May 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 977,776 | $ 1,044,728 |
Accounts receivable, net of allowances for doubtful accounts of $326 and $353, respectively | 286,645 | 281,612 |
Claims receivable, net of allowances for doubtful accounts of $5,106 and $4,868, respectively | 7,974 | 6,799 |
Settlement processing assets | 1,105,470 | 1,336,326 |
Prepaid expenses and other current assets | 206,964 | 181,848 |
Total current assets | 2,584,829 | 2,851,313 |
Goodwill | 4,849,015 | 4,829,405 |
Other intangible assets, net | 2,211,954 | 2,264,708 |
Property and equipment, net | 512,079 | 493,678 |
Deferred income taxes | 20,921 | 22,719 |
Other | 58,982 | 48,129 |
Total assets | 10,237,780 | 10,509,952 |
Current liabilities: | ||
Settlement lines of credit | 332,078 | 378,436 |
Current portion of long-term debt | 182,012 | 135,542 |
Accounts payable and accrued liabilities | 702,277 | 696,414 |
Settlement processing obligations | 1,015,805 | 1,220,315 |
Total current liabilities | 2,232,172 | 2,430,707 |
Long-term debt | 4,289,666 | 4,379,744 |
Deferred income taxes | 724,023 | 744,862 |
Other noncurrent liabilities | 86,707 | 77,235 |
Total liabilities | 7,332,568 | 7,632,548 |
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; 153,684,060 issued and outstanding at August 31, 2016 and 154,421,585 issued and outstanding at May 31, 2016 | 0 | 0 |
Paid-in capital | 1,913,164 | 1,976,715 |
Retained earnings | 1,099,026 | 1,015,811 |
Accumulated other comprehensive loss | (265,511) | (246,050) |
Total Global Payments shareholders’ equity | 2,746,679 | 2,746,476 |
Noncontrolling interests | 158,533 | 130,928 |
Total equity | 2,905,212 | 2,877,404 |
Total liabilities and equity | $ 10,237,780 | $ 10,509,952 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2016 | May 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances for doubtful accounts | $ 326 | $ 353 |
Allowance for doubtful other receivables, current | $ 5,106 | $ 4,868 |
Preferred stock, par value (in USD per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 153,684,060 | 154,421,585 |
Common stock, shares outstanding (in shares) | 153,684,060 | 154,421,585 |
UNAUDITED CONSOLIDATED STATEME6
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 92,458 | $ 93,048 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 22,657 | 17,909 |
Amortization of acquired intangibles | 80,529 | 20,848 |
Share-based compensation expense | 7,619 | 6,467 |
Provision for operating losses and bad debts | 9,626 | 4,263 |
Deferred income taxes | (20,861) | 3,584 |
Gain on sale of investments | (41,150) | 0 |
Other, net | 8,855 | 1,333 |
Changes in operating assets and liabilities, net of the effects of acquisitions: | ||
Accounts receivable | (7,726) | (7,512) |
Claims receivable | (7,097) | (12,261) |
Settlement processing assets and obligations, net | 30,409 | 402,676 |
Prepaid expenses and other assets | (50,498) | (18,114) |
Accounts payable and other liabilities | 30,846 | 1,151 |
Net cash provided by operating activities | 155,667 | 513,392 |
Cash flows from investing activities: | ||
Business acquisitions, net of cash acquired | (34,563) | (241,530) |
Capital expenditures | (41,381) | (16,858) |
Proceeds from sale of investments | 37,717 | 0 |
Net cash used in investing activities | (38,227) | (258,388) |
Cash flows from financing activities: | ||
Net payments on settlement lines of credit | (47,336) | (236,041) |
Proceeds from issuance of long-term debt | 215,000 | 2,821,425 |
Principal payments of long-term debt | (261,219) | (2,626,925) |
Payment of debt issuance costs | 0 | (4,934) |
Repurchase of common stock | (67,633) | (34,296) |
Proceeds from stock issued under share-based compensation plans | 3,037 | 2,513 |
Common stock repurchased - share-based compensation plans | (22,204) | (8,154) |
Tax benefit from share-based compensation plans | 12,303 | 5,760 |
Distributions to noncontrolling interests | (5,475) | (8,158) |
Dividends paid | (1,539) | (1,305) |
Net cash used in financing activities | (175,066) | (90,115) |
Effect of exchange rate changes on cash | (9,326) | (12,319) |
(Decrease) increase in cash and cash equivalents | (66,952) | 152,570 |
Cash and cash equivalents, beginning of the period | 1,044,728 | 650,739 |
Cash and cash equivalents, end of the period | $ 977,776 | $ 803,309 |
UNAUDITED CONSOLIDATED STATEME7
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Total Global Payments Shareholders’ Equity | Number of Shares | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance, beginning balance (in shares) at May. 31, 2015 | 130,558,000 | ||||||
Balance, beginning balance at May. 31, 2015 | $ 863,553 | $ 757,976 | $ 148,742 | $ 795,226 | $ (185,992) | $ 105,577 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 93,048 | 86,646 | 86,646 | 6,402 | |||
Other comprehensive loss, net of tax | (24,837) | (26,735) | (26,735) | 1,898 | |||
Stock issued under share-based compensation plans (in shares) | 551,000 | ||||||
Stock issued under share-based compensation plans | 2,513 | 2,513 | 2,513 | ||||
Common stock repurchased - share based compensation plans (in shares) | (207,000) | ||||||
Common stock repurchased - share-based compensation plans | (11,381) | (11,381) | (11,381) | ||||
Tax benefit from employee share-based compensation | 5,760 | 5,760 | 5,760 | ||||
Share-based compensation expense | 6,467 | 6,467 | 6,467 | ||||
Contribution of subsidiary shares to noncontrolling interest related to a business combination | 29,400 | 4,673 | 4,673 | 24,727 | |||
Distributions to noncontrolling interest | $ (8,158) | (8,158) | |||||
Repurchase of common stock (in shares) | (324,742) | (1,020,000) | |||||
Repurchase of common stock | $ (37,917) | (37,917) | (18,562) | (19,355) | |||
Dividends paid | (1,305) | (1,305) | (1,305) | ||||
Balance, ending balance (in shares) at Aug. 31, 2015 | 129,882,000 | ||||||
Balance, ending balance at Aug. 31, 2015 | 917,143 | 786,697 | 138,212 | 861,212 | (212,727) | 130,446 | |
Balance, beginning balance (in shares) at May. 31, 2016 | 154,422,000 | ||||||
Balance, beginning balance at May. 31, 2016 | 2,877,404 | 2,746,476 | 1,976,715 | 1,015,811 | (246,050) | 130,928 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 92,458 | 85,093 | 85,093 | 7,365 | |||
Other comprehensive loss, net of tax | (19,463) | (19,461) | (19,461) | (2) | |||
Stock issued under share-based compensation plans (in shares) | 605,000 | ||||||
Stock issued under share-based compensation plans | 3,037 | 3,037 | 3,037 | ||||
Common stock repurchased - share based compensation plans (in shares) | (255,000) | ||||||
Common stock repurchased - share-based compensation plans | (19,216) | (19,216) | (19,216) | ||||
Tax benefit from employee share-based compensation | 12,303 | 12,303 | 12,303 | ||||
Share-based compensation expense | 7,619 | 7,619 | 7,619 | ||||
Contribution of subsidiary shares to noncontrolling interest related to a business combination | 25,717 | 25,717 | |||||
Distributions to noncontrolling interest | $ (5,475) | (5,475) | |||||
Repurchase of common stock (in shares) | (127,435) | (1,088,000) | |||||
Repurchase of common stock | $ (67,633) | (67,633) | (67,294) | (339) | |||
Dividends paid | (1,539) | (1,539) | (1,539) | ||||
Balance, ending balance (in shares) at Aug. 31, 2016 | 153,684,000 | ||||||
Balance, ending balance at Aug. 31, 2016 | $ 2,905,212 | $ 2,746,679 | $ 1,913,164 | $ 1,099,026 | $ (265,511) | $ 158,533 |
UNAUDITED CONSOLIDATED STATEME8
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share (in USD per share) | $ 0.01 | $ 0.01 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Aug. 31, 2016 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND 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 globally. Our technologies, partnerships 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 30 countries throughout North America, Europe, the Asia-Pacific region and in Brazil and operate in three reportable segments: North America, Europe and Asia-Pacific. 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 payment technology services business since 1967 . 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. These unaudited consolidated financial statements include our accounts and those of our majority-owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). The consolidated balance sheet as of May 31, 2016 was derived from the audited financial statements for the year ended May 31, 2016 included in our Annual Report on Form 10-K for the year ended May 31, 2016 but does not include all disclosures required by GAAP for annual financial statements. In the opinion of our management, all known adjustments necessary for a fair presentation of the results of the interim periods have been made. These adjustments consist of normal recurring accruals and estimates that affect the carrying amount of assets and liabilities. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended May 31, 2016 . On July 27, 2016, the Board of Directors authorized a change in our fiscal year-end from May 31 to December 31. As a result of the change, we will file a Transition Report on Form 10-K for the seven-month transition period ending December 31, 2016 (the "Transition Period"). During the Transition Period, we will continue to file Quarterly Reports on Form 10-Q based on our prior year-end. 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. 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"), and 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 for prior periods in the consolidated financial statements and in the notes to our consolidated financial statements have been adjusted to reflect the Stock Split, except for authorized common shares, which were not affected. Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("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 does not change GAAP for a customer’s accounting for service contracts. We adopted this standard as of June 1, 2016 on a prospective basis, and it was not material to our balance sheet and/or our results of operations or cash flows. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ," which makes clarifications to how cash receipts and cash payments in certain transactions are presented and classified in the statement of cash flows. ASU 2016-15 will be effective for years beginning after December 15, 2017, including interim periods, and will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. Early adoption is permitted. We are evaluating the effect of ASU 2016-15 on our consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial instruments ." The amendments in this update change how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including trade receivables) that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. The guidance will be effective for years beginning after December 15, 2019 and interim periods within those years. Early adoption is permitted for annual and interim periods in years beginning after December 15, 2018. We are evaluating the effect of ASU 2016-13 on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. " The amendments in this update will change how companies account for certain aspects of share-based payments to employees. Entities will be required to recognize the income tax effects of awards in the statement of income when the awards vest or are settled. This update also changes the guidance on employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation, and permits entities to elect to recognize forfeitures based on actuals or estimates. Finally, the update eliminates the hypothetical additional paid-in capital pool, permits stock option deductions even if not realized in the current year on a return, requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity and potentially has a dilutive effect on earnings per share ("EPS") to the extent that excess tax benefits have historically been included in the calculation of diluted EPS. The amendments in this update will be effective for years beginning after December 15, 2016, including interim periods within those years. Early adoption is permitted. We are evaluating the effect of ASU 2016-09 on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, " Leases ." The amendments in this update require lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases. Accounting by lessors will remain largely unchanged. The guidance will be effective for years, including interim periods, beginning after December 15, 2018, with early adoption permitted. Adoption will require a modified retrospective transition where the lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented. We are evaluating the effect of ASU 2016-02 on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ." The amendments in this update address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures and limited liability companies) to be measured at fair value with changes in the fair value recognized through earnings. Equity investments that are accounted for under the equity method of accounting or result in consolidation of an investee are not included within the scope of this update. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The amendments also require enhanced disclosures about those investments. The guidance will be effective for years beginning after December 15, 2017, including interim periods within those years. Except for specific aspects of this pronouncement, early adoption of the amendments in this update is not permitted. We are evaluating the effect of ASU 2016-01 on our consolidated financial statements. 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 update 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. ASU 2014-09, as amended by ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ," is effective for years beginning after December 15, 2017, including interim periods, with early adoption permitted for years beginning after December 15, 2016. We are evaluating the effect of ASU 2014-09, as well as other clarifications and technical guidance issued by the FASB related to this new revenue standard, on our consolidated financial statements. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Aug. 31, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Heartland On December 15, 2015, we entered into a merger agreement with Heartland, pursuant to which we merged with Heartland in a cash-and-stock transaction that we completed on April 22, 2016 for total purchase consideration of $3.9 billion . This transaction was accounted for as a business combination, which requires that we record the assets acquired and liabilities assumed at fair value as of the acquisition date. The initial accounting for these acquisitions was not complete as of August 31, 2016. The fair values of the assets acquired and the liabilities assumed have been determined provisionally and are subject to adjustment as we obtain additional information. There were no material measurement-period adjustments during the three months ended August 31, 2016 . Additional time is needed to refine and review the results of the valuation of assets and liabilities and to evaluate the basis differences for assets and liabilities for financial reporting and tax purposes. Also, we are still in the process of assigning goodwill to our reporting units. The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, are as follows (in thousands): Cash and cash equivalents $ 304,747 Accounts receivable 68,585 Prepaid expenses and other assets 106,450 Identified intangible assets 1,639,040 Property and equipment 108,882 Debt (437,933 ) Accounts payable and accrued liabilities (453,575 ) Settlement processing obligations (20,978 ) Deferred income taxes (553,454 ) Other liabilities (58,542 ) Total identifiable net assets 703,222 Goodwill 3,219,598 Total purchase consideration $ 3,922,820 FIS Gaming Business On June 1, 2015 , we acquired certain assets of Certegy Check Services, Inc., a wholly owned subsidiary of Fidelity National Information Services, Inc. ("FIS"). Under the purchase agreement, we acquired substantially all of the assets of its gaming business related to licensed gaming operators (the "FIS Gaming Business"), including approximately 260 gaming client locations, for $237.5 million , 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 was accounted for as a business combination. We recorded the assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. Transaction costs associated with this business combination were not material. The revenue and earnings of the FIS Gaming Business for the year ended May 31, 2016 were not material nor were the historical revenue and earnings of the acquired business material for the purpose of presenting pro forma information. The estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed including a reconciliation to the total purchase consideration, are as follows (in thousands): Customer-related intangible assets $ 143,400 Liabilities (150 ) Total identifiable net assets 143,250 Goodwill 94,250 Total purchase consideration $ 237,500 Goodwill arising from the acquisition, included in the North America segment, was attributable to expected growth opportunities, including cross-selling opportunities at existing and acquired gaming client locations, operating synergies in the gaming business and assembled workforce. Goodwill associated with this acquisition is deductible for income tax purposes. The customer-related intangible assets have an estimated amortization period of 15 years. |
SETTLEMENT PROCESSING ASSETS AN
SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS | 3 Months Ended |
Aug. 31, 2016 | |
Offsetting [Abstract] | |
SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS | SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS As of August 31, 2016 and May 31, 2016 , settlement processing assets and obligations consisted of the following: August 31, 2016 May 31, 2016 (in thousands) Settlement processing assets: Interchange reimbursement $ 295,277 $ 150,644 Liability to Members (74,326 ) (14,997 ) Receivable from networks 894,132 1,203,308 Exception items 5,276 3,003 Merchant Reserves (14,889 ) (5,632 ) $ 1,105,470 $ 1,336,326 Settlement processing obligations: Interchange reimbursement $ 69,703 $ 193,989 Liability to Members (41,248 ) (261,945 ) Liability to merchants (903,319 ) (1,005,009 ) Exception items 7,915 5,827 Merchant Reserves (145,278 ) (149,667 ) Reserves for operating losses and sales allowances (3,578 ) (3,510 ) $ (1,015,805 ) $ (1,220,315 ) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Aug. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS As of August 31, 2016 and May 31, 2016 , goodwill and other intangible assets consisted of the following: August 31, 2016 May 31, 2016 (in thousands) Goodwill $ 4,849,015 $ 4,829,405 Other intangible assets: Customer-related intangible assets $ 1,884,155 $ 1,864,709 Acquired technologies 550,366 549,293 Trademarks and trade names 188,938 188,763 Contract-based intangible assets 159,928 159,890 2,783,387 2,762,655 Less accumulated amortization: Customer-related intangible assets 443,428 414,979 Acquired technologies 51,776 26,403 Trademarks and trade names 15,193 7,830 Contract-based intangible assets 61,036 48,735 571,433 497,947 $ 2,211,954 $ 2,264,708 The following table sets forth the changes in the carrying amount of goodwill for the three months ended August 31, 2016 : North America Europe Asia-Pacific Total (in thousands) Balance at May 31, 2016 $ 4,086,430 $ 471,773 $ 271,202 $ 4,829,405 Goodwill acquired — 26,923 — 26,923 Effect of foreign currency translation (75 ) (19,183 ) 8,564 (10,694 ) Measurement-period adjustments 3,381 — — 3,381 Balance at August 31, 2016 $ 4,089,736 $ 479,513 $ 279,766 $ 4,849,015 There was no accumulated impairment loss as of August 31, 2016 or May 31, 2016 . |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Aug. 31, 2016 | |
Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS Through certain of our subsidiaries in Europe, we were a member and shareholder of Visa Europe Limited ("Visa Europe"). On June 21, 2016 , Visa Inc. ("Visa") acquired all of the membership interests in Visa Europe, including ours, upon which we recorded a gain of $41.2 million included in interest and other income in our consolidated statement of income for the three months ended August 31, 2016 . We received up-front consideration comprised of € 33.5 million ( $37.7 million equivalent at June 21, 2016 ) in cash and Series B and C convertible preferred shares whose initial conversion rate equates to Visa common shares valued at $22.9 million as of June 21, 2016 . However, the preferred shares, which we account for using the cost method, have been assigned a value of zero as of June 21, 2016 , based on transfer restrictions, Visa's ability to adjust the conversion rate, and the estimation uncertainty associated with those factors. The fair value was determined using inputs classified as Level 3 within the fair value hierarchy due to the absence of quoted market prices, lack of liquidity and the fact that inputs used to measure fair value are unobservable and require management’s judgment. The preferred shares will convert into Visa common shares at periodic intervals over a 12 -year period. Based on the outcome of potential litigation involving Visa Europe in the United Kingdom and elsewhere in Europe, the conversion rate of the preferred shares could be adjusted down such that the number of Visa common shares ultimately received could be as low as zero , and approximately € 25.6 million ( $28.8 million equivalent at June 21, 2016 ) of the up-front cash consideration could be refundable. On the third anniversary of the closing of the acquisition by Visa, we will also receive € 3.1 million ( $3.5 million at June 21, 2016 ) of deferred consideration (plus compounded interest at a rate of 4.0% per annum). |
LONG-TERM DEBT AND CREDIT FACIL
LONG-TERM DEBT AND CREDIT FACILITIES | 3 Months Ended |
Aug. 31, 2016 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND CREDIT FACILITIES | LONG-TERM DEBT AND CREDIT FACILITIES As of August 31, 2016 and May 31, 2016 , long-term debt consisted of the following: August 31, 2016 May 31, 2016 (in thousands) Term loans (face amounts of $3,528,288 and $3,530,000 at August 31, 2016 and May 31, 2016, respectively, less unamortized debt issuance costs of $49,156 and $51,770 at August 31, 2016 and May 31, 2016, respectively) $ 3,479,132 $ 3,478,230 Revolving credit facility 992,500 1,037,000 Capital lease obligations 46 56 Total long-term debt 4,471,678 4,515,286 Less current portion of long-term debt (face amounts of $192,300 and $145,938 at August 31, 2016 and May 31, 2016, respectively, less unamortized debt issuance costs of $10,327 and $10,442 at August 31, 2016 and May 31, 2016, respectively) and current portion of capital lease obligations of $39 and $46 at August 31, 2016 and May 31, 2016, respectively 182,012 135,542 Long-term debt, excluding current portion $ 4,289,666 $ 4,379,744 Maturity requirements on long-term debt as of August 31, 2016 are as follows (in thousands): Fiscal years ending May 31, 2017 $ 144,264 2018 192,307 2019 219,700 2020 219,700 2021 2,749,500 2022 10,450 2023 and thereafter 984,913 Total $ 4,520,834 July 2015 Refinancing On July 31, 2015 , we entered into a second amended and restated term loan agreement (the "2015 Term Loan Agreement") and a second amended and restated credit agreement (the "2015 Revolving Credit Facility Agreement" and collectively, the "2015 Credit Facility Agreements") to provide for a $1.75 billion term loan (the "Term A Loan") and a $1.25 billion revolving credit facility (the "Revolving Credit Facility"), each with a syndicate of financial institutions. We used the proceeds of approximately $2.0 billion to repay the then-outstanding balances on our previously existing term loan and revolving credit facility. February 2016 Refinancing On February 26, 2016 , we entered into an amendment to the 2015 Credit Facility Agreements (as amended, the "2016 Credit Facility Agreement") to, among other things, (i) accelerate our repayment schedule for the Term A Loan, effective as of February 26, 2016 , and (ii) provide security for the Term A Loan and the Revolving Credit Facility and modify the applicable financial covenants and interest rate margins. In addition, the 2016 Credit Facility Agreement provided for a new $735 million delayed draw term loan facility (the "Delayed Draw Facility"). We also entered into a new $1.045 billion term B loan ("Term B Loan"). The Delayed Draw Facility and Term B Loan were issued on April 22, 2016 in connection with our merger with Heartland, resulting in total financing of approximately $4.78 billion . The incremental proceeds from the new loans were used, among other things, to repay certain portions of Heartland's existing indebtedness and to finance, in part, the cash consideration and the merger-related costs. Substantially all of the assets of our domestic subsidiaries are pledged as collateral under the 2016 Credit Facility Agreement. The 2016 Credit Facility Agreement provides for an interest rate, at our election, of either London Interbank Offered Rate ("LIBOR") or a base rate, in each case plus a leverage-based margin. As of August 31, 2016 , the interest rates on the Term A Loan, the Term B Loan and the Delayed Draw Facility were 3.02% , 4.02% and 2.94% , respectively. Pursuant to the 2016 Credit Facility Agreement, the Term A Loan must be repaid in equal quarterly installments of $43.8 million commencing in November 2016 and ending in May 2020, with the remaining principal balance due upon maturity in July 2020. The Delayed Draw Facility must be repaid in quarterly installments of $1.7 million , the first installment of which was made in August 2016, increasing to quarterly installments of $8.6 million in August 2018 and ending in May 2020, with the remaining balance due upon maturity in July 2020. The Term B Loan must be repaid in quarterly installments of $2.6 million , the first installment of which was made in September 2016, ending in March 2023, with the remaining principal balance due upon maturity in April 2023. As of August 31, 2016 , the outstanding balance on the Revolving Credit Facility was $992.5 million . The 2016 Credit Facility Agreement allows us to issue standby letters of credit of up to $100 million in the aggregate under the Revolving Credit Facility. Outstanding letters of credit under the Revolving Credit Facility reduce the amount of borrowings available to us. Borrowings available to us under the Revolving Credit Facility are further limited by the covenants described below under "Compliance with Covenants." At August 31, 2016 and May 31, 2016, we had outstanding standby letters of credit of $21.3 million and $8.5 million , respectively. The total available commitments under the Revolving Credit Facility at August 31, 2016 and May 31, 2016 were $236.2 million and $204.5 million , respectively. As of August 31, 2016 , the interest rate on the Revolving Credit Facility was 2.94% . In addition, w e are required to pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility. The Revolving Credit Facility expires in July 2020. The 2015 Credit Facility Agreement and the 2016 Credit Facility Agreement were combined in evaluating the accounting treatment for fees and expenses incurred. We incurred fees and expenses associated with the 2015 Credit Facility Agreement and the 2016 Credit Facility Agreement of approximately $63.4 million . The portion of the debt issuance costs related to the Revolving Credit Facility is included in other noncurrent assets, and the portion of the debt issuance costs related to the Term A Loan, the Term B Loan and the Delayed Draw Facility is reported as a reduction to the carrying amount of the debt. Debt issuance costs are amortized as an adjustment to interest expense over the terms of the respective facilities. Settlement Lines of Credit We have lines of credit with banks in various markets where we do business. The lines of credit, which are restricted for use in funding settlement, generally have variable 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 available credit is increased by the amount of cash we have on deposit in specific accounts with the lender. Accordingly, the amount of the outstanding line of credit may exceed the stated credit limit. As of August 31, 2016 and May 31, 2016 , a total of $46.6 million and $42.9 million , respectively, of cash on deposit was used to determine the available credit. As of August 31, 2016 and May 31, 2016 , respectively, we had $332.1 million and $378.4 million outstanding under these lines of credit with additional capacity of $744.3 million as of August 31, 2016 to fund settlement. The weighted-average interest rate on these borrowings was 1.98% and 1.80% at August 31, 2016 and May 31, 2016 , respectively. During the three months ended August 31, 2016 , the maximum and average outstanding balances under these lines of credit were $550.1 million and $311.1 million , respectively. Compliance with Covenants The 2016 Credit Facility Agreement contains customary affirmative and restrictive covenants, including, among others, financial covenants based on our leverage and fixed charge coverage ratios. Financial covenants require a leverage ratio no greater than (i) 5.00 to 1.00 as of the end of any fiscal quarter ended during the period from April 22, 2016 through August 31, 2016, (ii) 4.75 to 1.00 as of the end of any fiscal quarter ending during the period from September 1, 2016 through February 28, 2017, (iii) 4.50 to 1.00 as of the end of any fiscal quarter ending during the period from March 1, 2017 through August 31, 2017, (iv) 4.25 to 1.00 as of the end of any fiscal quarter ending during the period from September 1, 2017 to February 28, 2018 and (v) 4.00 to 1.00 as of the end of any fiscal quarter ending thereafter. The fixed charge coverage ratio is required to be no less than 2.25 to 1.00 . The 2016 Credit Facility Agreement and settlement lines of credit also include various other covenants that are customary in such borrowings. The 2016 Credit Facility Agreement includes covenants, subject in each case to exceptions and qualifications, that may restrict certain payments, including, in certain circumstances, the payment of cash dividends in excess of our current rate of $0.01 per share per quarter. The 2016 Credit Facility Agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. We were in compliance with all applicable covenants as of and for the three months ended August 31, 2016 . Interest Rate Swap Agreements We have interest rate swap agreements with financial institutions to hedge changes in cash flows attributable to interest rate risk on a portion of our variable-rate debt instruments. A $500 million notional interest rate swap agreement, which became effective on October 31, 2014 , effectively converted $500 million of our variable-rate debt to a fixed rate of 1.52% plus a leverage-based margin and will mature on February 28, 2019 . A $250 million notional interest rate swap, which became effective on August 28, 2015 , effectively converted $250 million of our variable-rate debt to a fixed rate of 1.34% plus a leverage-based margin and will mature on July 31, 2020 . Net amounts to be received or paid under the swap agreements are reflected as adjustments to interest expense. Since we have designated the interest rate swap agreements as portfolio cash flow hedges, unrealized gains or losses resulting from adjusting the swaps to fair value are recorded as components of other comprehensive income, except for any ineffective portion of the change in fair value, which would be immediately recorded in interest expense. During the three months ended August 31, 2016 , there was no ineffectiveness. The fair values of the interest rate swaps were determined based on the present value of the estimated future net cash flows using implied rates in the applicable yield curve as of the valuation date. These derivative instruments were classified within Level 2 of the valuation hierarchy. The table below presents the fair values of our derivative financial instruments designated as cash flow hedges included within accounts payable and accrued liabilities in the consolidated balance sheets: August 31, 2016 May 31, 2016 (in thousands) Interest rate swaps ($750 million notional) $ 12,083 $ 10,775 The table below presents the effects of our interest rate swaps on the consolidated statements of income and other comprehensive loss for the three months ended August 31, 2016 and 2015 : Three Months Ended August 31, 2016 August 31, 2015 (in thousands) Amount of loss recognized in other comprehensive loss $ 3,205 $ 32 Amount of loss recognized in interest expense $ 1,897 $ 1,734 At August 31, 2016 , the amount in accumulated other comprehensive loss related to our interest rate swaps that is expected to be reclassified into interest expense during the next 12 months was approximately $5.9 million . Interest Expense Interest expense was approximately $43 million and $13 million for the three months ended August 31, 2016 and 2015 , respectively. |
INCOME TAX
INCOME TAX | 3 Months Ended |
Aug. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | INCOME TAX Our effective income tax rates were 23.3% and 26.0% for the three months ended August 31, 2016 and August 31, 2015 , respectively. Our effective income tax rates differ from the U.S. statutory rate primarily due to income generated in international jurisdictions with lower tax rates. We conduct business globally and file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities around the world, including, without limitation, the United States and the United Kingdom. We are no longer subject 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 2013 and U.K. federal income tax examinations for years ended on or before May 31, 2013 . |
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY | 3 Months Ended |
Aug. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY From time-to-time, we make repurchases of our common stock mainly through the use of open market purchases and accelerated share repurchase programs ("ASR's"). As of August 31, 2016 , we were authorized to repurchase up to $199.3 million of our common stock. During the three months ended August 31, 2016 , 127,435 shares were delivered to us in connection with the completion of an ASR initiated on April 25, 2016. In addition, through open market repurchase plans, we repurchased and retired 960,716 shares of our common stock at a cost of $67.6 million , or an average cost of $70.39 per share, including commissions. During the three months ended August 31, 2015, 324,742 shares were delivered to us in connection with the completion of an ASR initiated on April 10, 2015 . In addition to the ASR, through open market repurchase plans, we repurchased and retired 694,990 shares of our common stock at a cost of $37.9 million , or an average cost of $ 54.56 per share, including commissions. |
SHARE-BASED AWARDS AND OPTIONS
SHARE-BASED AWARDS AND OPTIONS | 3 Months Ended |
Aug. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED AWARDS AND OPTIONS | SHARE-BASED AWARDS AND OPTIONS The following table summarizes share-based compensation expense and the related income tax benefit recognized for our share-based awards and stock options: Three Months Ended August 31, 2016 August 31, 2015 (in thousands) Share-based compensation expense $ 7,619 $ 6,467 Income tax benefit $ 3,572 $ 2,358 Share-Based Awards The following table summarizes the changes in unvested share-based awards for the three months ended August 31, 2016 : Shares Weighted-Average Grant-Date Fair Value (in thousands) Unvested at May 31, 2016 1,606 $ 37.25 Granted 418 74.18 Vested (687 ) 30.46 Forfeited (18 ) 40.85 Unvested at August 31, 2016 1,319 $ 48.95 The total fair value of share-based awards vested during the three months ended August 31, 2016 and August 31, 2015 was $20.9 million and $15.7 million , respectively. For these share-based awards, we recognized compensation expense of $7.0 million and $6.1 million during the three months ended August 31, 2016 and August 31, 2015 , respectively. As of August 31, 2016 , there was $ 56.6 million of unrecognized compensation expense related to unvested share-based awards that we expect to recognize over a weighted-average period of 2.3 years. Our share-based award plans provide for accelerated vesting under certain conditions. Stock Options Stock options are granted with an exercise price equal to 100% of fair market value of our common stock on the date of grant and have a term of ten 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 and thereafter vest in equal installments on each of the first three anniversaries of the grant date. During the three months ended August 31, 2016 and August 31, 2015 , we granted 72,733 and 72,393 stock options, respectively. Our stock option plans provide for accelerated vesting under certain conditions. The following summarizes changes in unvested stock option activity for the three months ended August 31, 2016 : Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at May 31, 2016 811 $ 31.81 5.8 $ 36.8 Granted 73 74.66 Forfeited (1 ) 22.93 Exercised (111 ) 20.14 Outstanding at August 31, 2016 772 $ 37.56 6.4 $ 29.9 Options vested and exercisable at August 31, 2016 515 $ 29.18 5.1 $ 24.2 We recognized compensation expense for stock options of $0.4 million and $0.2 million during the three months ended August 31, 2016 and August 31, 2015 , respectively. The aggregate intrinsic value of stock options exercised during the three months ended August 31, 2016 and August 31, 2015 was $6.1 million and $2.7 million , respectively. As of August 31, 2016 , we had $3.7 million of unrecognized compensation expense related to unvested stock options that we expect to recognize over a weighted-average period of 2.1 years. The weighted-average grant-date fair value of each stock option granted during the three months ended August 31, 2016 and August 31, 2015 was $21.87 and $15.60 , respectively. Fair value was estimated on the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions: Three Months Ended August 31, 2016 August 31, 2015 Risk-free interest rate 1.05% 1.62% Expected volatility 31.58% 28.65% Dividend yield 0.06% 0.10% Expected term (years) 5 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 term of the options on our analysis of the historical exercise patterns of the options and our assumption on the future exercise pattern of options. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Aug. 31, 2016 | |
Earnings Per Share [Abstract] | |
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. There were no stock options that would have an antidilutive effect on the computation of diluted earnings per share for the three months ended August 31, 2016 . The diluted share base for the three months ended August 31, 2015 excludes less than 0.1 million shares related to stock options that would have an antidilutive effect on earnings per share. The following table sets forth the computation of diluted weighted-average number of shares outstanding for the three months ended August 31, 2016 and August 31, 2015 : Three Months Ended August 31, 2016 August 31, 2015 (in thousands) Basic weighted-average number of shares outstanding 153,901 130,328 Plus: Dilutive effect of stock options and other share-based awards 974 818 Diluted weighted-average number of shares outstanding 154,875 131,146 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Aug. 31, 2016 | |
Accumulated Other Comprehensive Loss [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in the accumulated balances for each component of other comprehensive loss were as follows for the three months ended August 31, 2016 and August 31, 2015 : Foreign Currency Translation Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at May 31, 2015 $ (178,309 ) $ (3,874 ) $ (3,809 ) $ (185,992 ) Other comprehensive income (loss) (27,815 ) 1,080 — (26,735 ) Balance at August 31, 2015 $ (206,124 ) $ (2,794 ) $ (3,809 ) $ (212,727 ) Balance at May 31, 2016 $ (234,638 ) $ (6,755 ) $ (4,657 ) $ (246,050 ) Other comprehensive income (loss) (18,779 ) (790 ) 108 (19,461 ) Balance at August 31, 2016 $ (253,417 ) $ (7,545 ) $ (4,549 ) $ (265,511 ) Other comprehensive income attributable to noncontrolling interest, which relates only to foreign currency translation, was approximately zero and $ 1.9 million for the three months ended August 31, 2016 and August 31, 2015 , respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Aug. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We evaluate performance and allocate resources based on the operating income of each operating segment. The operating income of each operating segment includes the revenues of the segment less 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 operating segments. We do not evaluate the performance of or allocate resources to our operating segments using asset data. The accounting policies of the reportable operating segments are the same as those described in our Annual Report on Form 10-K for the year ended May 31, 2016 and our summary of significant accounting policies in "Note 1 -Basis of Presentation and Summary of Significant Accounting Policies." Information on segments and reconciliations to consolidated revenues and consolidated operating income are as follows for the three months ended August 31, 2016 and August 31, 2015 : Three Months Ended August 31, 2016 August 31, 2015 (in thousands) Revenues: North America $ 711,765 $ 530,857 Europe 169,565 168,357 Asia-Pacific 58,162 49,582 Consolidated revenues $ 939,492 $ 748,796 Operating income (loss): North America $ 105,700 $ 83,513 Europe 65,539 72,733 Asia-Pacific 14,022 12,233 Corporate (1) (64,155 ) (30,707 ) Consolidated operating income $ 121,106 $ 137,772 Depreciation and amortization: North America $ 86,915 $ 23,743 Europe 10,413 10,344 Asia-Pacific 4,426 3,057 Corporate 1,432 1,613 Consolidated depreciation and amortization $ 103,186 $ 38,757 (1) During the three months ended August 31, 2016 , operating loss for Corporate included expenses of $30.5 million incurred in connection with the integration of Heartland. These merger-related expenses are included in selling, general and administrative expenses in the consolidated statement of income. |
BASIS OF PRESENTATION AND SUM21
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Aug. 31, 2016 | |
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 globally. Our technologies, partnerships 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 30 countries throughout North America, Europe, the Asia-Pacific region and in Brazil and operate in three reportable segments: North America, Europe and Asia-Pacific. 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 payment technology services business since 1967 . 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. These unaudited consolidated financial statements include our accounts and those of our majority-owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). The consolidated balance sheet as of May 31, 2016 was derived from the audited financial statements for the year ended May 31, 2016 included in our Annual Report on Form 10-K for the year ended May 31, 2016 but does not include all disclosures required by GAAP for annual financial statements. In the opinion of our management, all known adjustments necessary for a fair presentation of the results of the interim periods have been made. These adjustments consist of normal recurring accruals and estimates that affect the carrying amount of assets and liabilities. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended May 31, 2016 . On July 27, 2016, the Board of Directors authorized a change in our fiscal year-end from May 31 to December 31. As a result of the change, we will file a Transition Report on Form 10-K for the seven-month transition period ending December 31, 2016 (the "Transition Period"). During the Transition Period, we will continue to file Quarterly Reports on Form 10-Q based on our prior year-end. |
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. |
Stock split | 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"), and 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 for prior periods in the consolidated financial statements and in the notes to our consolidated financial statements have been adjusted to reflect the Stock Split, except for authorized common shares, which were not affected. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("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 does not change GAAP for a customer’s accounting for service contracts. We adopted this standard as of June 1, 2016 on a prospective basis, and it was not material to our balance sheet and/or our results of operations or cash flows. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ," which makes clarifications to how cash receipts and cash payments in certain transactions are presented and classified in the statement of cash flows. ASU 2016-15 will be effective for years beginning after December 15, 2017, including interim periods, and will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. Early adoption is permitted. We are evaluating the effect of ASU 2016-15 on our consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial instruments ." The amendments in this update change how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including trade receivables) that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. The guidance will be effective for years beginning after December 15, 2019 and interim periods within those years. Early adoption is permitted for annual and interim periods in years beginning after December 15, 2018. We are evaluating the effect of ASU 2016-13 on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. " The amendments in this update will change how companies account for certain aspects of share-based payments to employees. Entities will be required to recognize the income tax effects of awards in the statement of income when the awards vest or are settled. This update also changes the guidance on employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation, and permits entities to elect to recognize forfeitures based on actuals or estimates. Finally, the update eliminates the hypothetical additional paid-in capital pool, permits stock option deductions even if not realized in the current year on a return, requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity and potentially has a dilutive effect on earnings per share ("EPS") to the extent that excess tax benefits have historically been included in the calculation of diluted EPS. The amendments in this update will be effective for years beginning after December 15, 2016, including interim periods within those years. Early adoption is permitted. We are evaluating the effect of ASU 2016-09 on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, " Leases ." The amendments in this update require lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases. Accounting by lessors will remain largely unchanged. The guidance will be effective for years, including interim periods, beginning after December 15, 2018, with early adoption permitted. Adoption will require a modified retrospective transition where the lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented. We are evaluating the effect of ASU 2016-02 on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ." The amendments in this update address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures and limited liability companies) to be measured at fair value with changes in the fair value recognized through earnings. Equity investments that are accounted for under the equity method of accounting or result in consolidation of an investee are not included within the scope of this update. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The amendments also require enhanced disclosures about those investments. The guidance will be effective for years beginning after December 15, 2017, including interim periods within those years. Except for specific aspects of this pronouncement, early adoption of the amendments in this update is not permitted. We are evaluating the effect of ASU 2016-01 on our consolidated financial statements. 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 update 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. ASU 2014-09, as amended by ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ," is effective for years beginning after December 15, 2017, including interim periods, with early adoption permitted for years beginning after December 15, 2016. We are evaluating the effect of ASU 2014-09, as well as other clarifications and technical guidance issued by the FASB related to this new revenue standard, on our consolidated financial statements. |
ACQUISITIONS - (Tables)
ACQUISITIONS - (Tables) | 3 Months Ended |
Aug. 31, 2016 | |
Heartland Payment Systems, Inc | |
Business Acquisition [Line Items] | |
Schedule of recognized identified assets acquired and liabilities assumed | The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, are as follows (in thousands): Cash and cash equivalents $ 304,747 Accounts receivable 68,585 Prepaid expenses and other assets 106,450 Identified intangible assets 1,639,040 Property and equipment 108,882 Debt (437,933 ) Accounts payable and accrued liabilities (453,575 ) Settlement processing obligations (20,978 ) Deferred income taxes (553,454 ) Other liabilities (58,542 ) Total identifiable net assets 703,222 Goodwill 3,219,598 Total purchase consideration $ 3,922,820 |
FIS Gaming Business | |
Business Acquisition [Line Items] | |
Schedule of recognized identified assets acquired and liabilities assumed | The estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed including a reconciliation to the total purchase consideration, are as follows (in thousands): Customer-related intangible assets $ 143,400 Liabilities (150 ) Total identifiable net assets 143,250 Goodwill 94,250 Total purchase consideration $ 237,500 |
SETTLEMENT PROCESSING ASSETS 23
SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS (Tables) | 3 Months Ended |
Aug. 31, 2016 | |
Offsetting [Abstract] | |
Offsetting liabilities | As of August 31, 2016 and May 31, 2016 , settlement processing assets and obligations consisted of the following: August 31, 2016 May 31, 2016 (in thousands) Settlement processing assets: Interchange reimbursement $ 295,277 $ 150,644 Liability to Members (74,326 ) (14,997 ) Receivable from networks 894,132 1,203,308 Exception items 5,276 3,003 Merchant Reserves (14,889 ) (5,632 ) $ 1,105,470 $ 1,336,326 Settlement processing obligations: Interchange reimbursement $ 69,703 $ 193,989 Liability to Members (41,248 ) (261,945 ) Liability to merchants (903,319 ) (1,005,009 ) Exception items 7,915 5,827 Merchant Reserves (145,278 ) (149,667 ) Reserves for operating losses and sales allowances (3,578 ) (3,510 ) $ (1,015,805 ) $ (1,220,315 ) |
Offsetting assets | As of August 31, 2016 and May 31, 2016 , settlement processing assets and obligations consisted of the following: August 31, 2016 May 31, 2016 (in thousands) Settlement processing assets: Interchange reimbursement $ 295,277 $ 150,644 Liability to Members (74,326 ) (14,997 ) Receivable from networks 894,132 1,203,308 Exception items 5,276 3,003 Merchant Reserves (14,889 ) (5,632 ) $ 1,105,470 $ 1,336,326 Settlement processing obligations: Interchange reimbursement $ 69,703 $ 193,989 Liability to Members (41,248 ) (261,945 ) Liability to merchants (903,319 ) (1,005,009 ) Exception items 7,915 5,827 Merchant Reserves (145,278 ) (149,667 ) Reserves for operating losses and sales allowances (3,578 ) (3,510 ) $ (1,015,805 ) $ (1,220,315 ) |
GOODWILL AND OTHER INTANGIBLE24
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Aug. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets | As of August 31, 2016 and May 31, 2016 , goodwill and other intangible assets consisted of the following: August 31, 2016 May 31, 2016 (in thousands) Goodwill $ 4,849,015 $ 4,829,405 Other intangible assets: Customer-related intangible assets $ 1,884,155 $ 1,864,709 Acquired technologies 550,366 549,293 Trademarks and trade names 188,938 188,763 Contract-based intangible assets 159,928 159,890 2,783,387 2,762,655 Less accumulated amortization: Customer-related intangible assets 443,428 414,979 Acquired technologies 51,776 26,403 Trademarks and trade names 15,193 7,830 Contract-based intangible assets 61,036 48,735 571,433 497,947 $ 2,211,954 $ 2,264,708 |
Schedule of goodwill | The following table sets forth the changes in the carrying amount of goodwill for the three months ended August 31, 2016 : North America Europe Asia-Pacific Total (in thousands) Balance at May 31, 2016 $ 4,086,430 $ 471,773 $ 271,202 $ 4,829,405 Goodwill acquired — 26,923 — 26,923 Effect of foreign currency translation (75 ) (19,183 ) 8,564 (10,694 ) Measurement-period adjustments 3,381 — — 3,381 Balance at August 31, 2016 $ 4,089,736 $ 479,513 $ 279,766 $ 4,849,015 |
LONG-TERM DEBT AND CREDIT FAC25
LONG-TERM DEBT AND CREDIT FACILITIES (Tables) | 3 Months Ended |
Aug. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | As of August 31, 2016 and May 31, 2016 , long-term debt consisted of the following: August 31, 2016 May 31, 2016 (in thousands) Term loans (face amounts of $3,528,288 and $3,530,000 at August 31, 2016 and May 31, 2016, respectively, less unamortized debt issuance costs of $49,156 and $51,770 at August 31, 2016 and May 31, 2016, respectively) $ 3,479,132 $ 3,478,230 Revolving credit facility 992,500 1,037,000 Capital lease obligations 46 56 Total long-term debt 4,471,678 4,515,286 Less current portion of long-term debt (face amounts of $192,300 and $145,938 at August 31, 2016 and May 31, 2016, respectively, less unamortized debt issuance costs of $10,327 and $10,442 at August 31, 2016 and May 31, 2016, respectively) and current portion of capital lease obligations of $39 and $46 at August 31, 2016 and May 31, 2016, respectively 182,012 135,542 Long-term debt, excluding current portion $ 4,289,666 $ 4,379,744 |
Schedule of maturities of long-term debt | Maturity requirements on long-term debt as of August 31, 2016 are as follows (in thousands): Fiscal years ending May 31, 2017 $ 144,264 2018 192,307 2019 219,700 2020 219,700 2021 2,749,500 2022 10,450 2023 and thereafter 984,913 Total $ 4,520,834 |
Schedule of derivative instruments | The table below presents the fair values of our derivative financial instruments designated as cash flow hedges included within accounts payable and accrued liabilities in the consolidated balance sheets: August 31, 2016 May 31, 2016 (in thousands) Interest rate swaps ($750 million notional) $ 12,083 $ 10,775 |
Schedule of derivative instrument effect on other comprehensive income (loss) | The table below presents the effects of our interest rate swaps on the consolidated statements of income and other comprehensive loss for the three months ended August 31, 2016 and 2015 : Three Months Ended August 31, 2016 August 31, 2015 (in thousands) Amount of loss recognized in other comprehensive loss $ 3,205 $ 32 Amount of loss recognized in interest expense $ 1,897 $ 1,734 |
SHARE-BASED AWARDS AND OPTIONS
SHARE-BASED AWARDS AND OPTIONS (Tables) | 3 Months Ended |
Aug. 31, 2016 | |
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 our share-based awards and stock options: Three Months Ended August 31, 2016 August 31, 2015 (in thousands) Share-based compensation expense $ 7,619 $ 6,467 Income tax benefit $ 3,572 $ 2,358 |
Schedule of changes in non-vested restricted stock awards activity | The following table summarizes the changes in unvested share-based awards for the three months ended August 31, 2016 : Shares Weighted-Average Grant-Date Fair Value (in thousands) Unvested at May 31, 2016 1,606 $ 37.25 Granted 418 74.18 Vested (687 ) 30.46 Forfeited (18 ) 40.85 Unvested at August 31, 2016 1,319 $ 48.95 |
Schedule of share-based compensation, stock options, activity | The following summarizes changes in unvested stock option activity for the three months ended August 31, 2016 : Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at May 31, 2016 811 $ 31.81 5.8 $ 36.8 Granted 73 74.66 Forfeited (1 ) 22.93 Exercised (111 ) 20.14 Outstanding at August 31, 2016 772 $ 37.56 6.4 $ 29.9 Options vested and exercisable at August 31, 2016 515 $ 29.18 5.1 $ 24.2 |
Schedule of share-based payment award, stock options, valuation assumptions | Fair value was estimated on the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions: Three Months Ended August 31, 2016 August 31, 2015 Risk-free interest rate 1.05% 1.62% Expected volatility 31.58% 28.65% Dividend yield 0.06% 0.10% Expected term (years) 5 5 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Aug. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of shares | The following table sets forth the computation of diluted weighted-average number of shares outstanding for the three months ended August 31, 2016 and August 31, 2015 : Three Months Ended August 31, 2016 August 31, 2015 (in thousands) Basic weighted-average number of shares outstanding 153,901 130,328 Plus: Dilutive effect of stock options and other share-based awards 974 818 Diluted weighted-average number of shares outstanding 154,875 131,146 |
ACCUMULATED OTHER COMPREHENSI28
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Aug. 31, 2016 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of accumulated other comprehensive loss | The changes in the accumulated balances for each component of other comprehensive loss were as follows for the three months ended August 31, 2016 and August 31, 2015 : Foreign Currency Translation Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at May 31, 2015 $ (178,309 ) $ (3,874 ) $ (3,809 ) $ (185,992 ) Other comprehensive income (loss) (27,815 ) 1,080 — (26,735 ) Balance at August 31, 2015 $ (206,124 ) $ (2,794 ) $ (3,809 ) $ (212,727 ) Balance at May 31, 2016 $ (234,638 ) $ (6,755 ) $ (4,657 ) $ (246,050 ) Other comprehensive income (loss) (18,779 ) (790 ) 108 (19,461 ) Balance at August 31, 2016 $ (253,417 ) $ (7,545 ) $ (4,549 ) $ (265,511 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Aug. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Information on segments and reconciliations to consolidated revenues and consolidated operating income are as follows for the three months ended August 31, 2016 and August 31, 2015 : Three Months Ended August 31, 2016 August 31, 2015 (in thousands) Revenues: North America $ 711,765 $ 530,857 Europe 169,565 168,357 Asia-Pacific 58,162 49,582 Consolidated revenues $ 939,492 $ 748,796 Operating income (loss): North America $ 105,700 $ 83,513 Europe 65,539 72,733 Asia-Pacific 14,022 12,233 Corporate (1) (64,155 ) (30,707 ) Consolidated operating income $ 121,106 $ 137,772 Depreciation and amortization: North America $ 86,915 $ 23,743 Europe 10,413 10,344 Asia-Pacific 4,426 3,057 Corporate 1,432 1,613 Consolidated depreciation and amortization $ 103,186 $ 38,757 (1) During the three months ended August 31, 2016 , operating loss for Corporate included expenses of $30.5 million incurred in connection with the integration of Heartland. These merger-related expenses are included in selling, general and administrative expenses in the consolidated statement of income. |
BASIS OF PRESENTATION AND SUM30
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Nov. 02, 2015 | Aug. 31, 2016segmentCountry |
Accounting Policies [Abstract] | ||
Number of countries in which entity operates | Country | 30 | |
Number of reportable segments | segment | 3 | |
Stock split conversion ratio | 2 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ in Millions | Apr. 22, 2016USD ($) | Jun. 01, 2015USD ($)gaming_client_location | Aug. 31, 2016 |
Heartland Payment Systems, Inc | |||
Business Acquisition [Line Items] | |||
Total purchase consideration | $ 3,900 | ||
FIS Gaming Business | |||
Business Acquisition [Line Items] | |||
Number of customers acquired | gaming_client_location | 260 | ||
Payments to acquire businesses, gross | $ 237.5 | ||
Customer-related intangible assets | FIS Gaming Business | |||
Business Acquisition [Line Items] | |||
Amortization period for customer related intangible asset | 15 years |
ACQUISITIONS - Acquisition Date
ACQUISITIONS - Acquisition Date Fair value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 22, 2016 | Aug. 31, 2016 | May 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 4,849,015 | $ 4,829,405 | |
Heartland Payment Systems, Inc | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 304,747 | ||
Accounts receivable | 68,585 | ||
Prepaid expenses and other assets | 106,450 | ||
Identified intangible assets | 1,639,040 | ||
Property and equipment | 108,882 | ||
Debt | (437,933) | ||
Accounts payable and accrued liabilities | (453,575) | ||
Settlement processing obligations | (20,978) | ||
Deferred income taxes | (553,454) | ||
Other liabilities | (58,542) | ||
Total identifiable net assets | 703,222 | ||
Goodwill | 3,219,598 | ||
Total purchase consideration | $ 3,900,000 |
ACQUISITIONS - Recognized Ident
ACQUISITIONS - Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | May 31, 2016 | Jun. 01, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 4,849,015 | $ 4,829,405 | |
FIS Gaming Business | |||
Business Acquisition [Line Items] | |||
Liabilities | $ 150 | ||
Total identifiable net assets | 143,250 | ||
Goodwill | 94,250 | ||
Total purchase consideration | 237,500 | ||
Customer-related intangible assets | FIS Gaming Business | |||
Business Acquisition [Line Items] | |||
Customer-related intangible assets | $ 143,400 |
SETTLEMENT PROCESSING ASSETS 34
SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | May 31, 2016 |
Offsetting Assets [Line Items] | ||
Total | $ 1,105,470 | $ 1,336,326 |
Total | (1,015,805) | (1,220,315) |
Merchant Reserves | ||
Offsetting Assets [Line Items] | ||
Merchant Reserves | (14,889) | (5,632) |
Settlement liabilities, reserves | (145,278) | (149,667) |
Reserves for operating losses and sales allowances | ||
Offsetting Assets [Line Items] | ||
Settlement liabilities, reserves | (3,578) | (3,510) |
Interchange reimbursement | ||
Offsetting Assets [Line Items] | ||
Settlement processing assets, gross | 295,277 | 150,644 |
Settlement processing obligations, gross | 69,703 | 193,989 |
Liability to Members | ||
Offsetting Assets [Line Items] | ||
Settlement processing assets, gross | (74,326) | (14,997) |
Settlement processing obligations, gross | (41,248) | (261,945) |
Receivable from networks | ||
Offsetting Assets [Line Items] | ||
Settlement processing assets, gross | 894,132 | 1,203,308 |
Liability to merchants | ||
Offsetting Assets [Line Items] | ||
Settlement processing obligations, gross | (903,319) | (1,005,009) |
Exception items | ||
Offsetting Assets [Line Items] | ||
Settlement processing assets, gross | 5,276 | 3,003 |
Settlement processing obligations, gross | $ 7,915 | $ 5,827 |
GOODWILL AND OTHER INTANGIBLE35
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | May 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 4,849,015 | $ 4,829,405 |
Other intangible assets: | ||
Other intangible assets | 2,783,387 | 2,762,655 |
Less accumulated amortization: | ||
Less accumulated amortization | 571,433 | 497,947 |
Other intangible assets, net | 2,211,954 | 2,264,708 |
Customer-related intangible assets | ||
Other intangible assets: | ||
Other intangible assets | 1,884,155 | 1,864,709 |
Less accumulated amortization: | ||
Less accumulated amortization | 443,428 | 414,979 |
Acquired technologies | ||
Other intangible assets: | ||
Other intangible assets | 550,366 | 549,293 |
Less accumulated amortization: | ||
Less accumulated amortization | 51,776 | 26,403 |
Trademarks and trade names | ||
Other intangible assets: | ||
Other intangible assets | 188,938 | 188,763 |
Less accumulated amortization: | ||
Less accumulated amortization | 15,193 | 7,830 |
Contract-based intangible assets | ||
Other intangible assets: | ||
Other intangible assets | 159,928 | 159,890 |
Less accumulated amortization: | ||
Less accumulated amortization | $ 61,036 | $ 48,735 |
GOODWILL AND OTHER INTANGIBLE36
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill Rollforward (Details) $ in Thousands | 3 Months Ended |
Aug. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Balance at May 31, 2016 | $ 4,829,405 |
Goodwill acquired | 26,923 |
Effect of foreign currency translation | (10,694) |
Measurement-period adjustments | 3,381 |
Balance at August 31, 2016 | 4,849,015 |
North America | |
Goodwill [Roll Forward] | |
Balance at May 31, 2016 | 4,086,430 |
Goodwill acquired | 0 |
Effect of foreign currency translation | (75) |
Measurement-period adjustments | 3,381 |
Balance at August 31, 2016 | 4,089,736 |
Europe | |
Goodwill [Roll Forward] | |
Balance at May 31, 2016 | 471,773 |
Goodwill acquired | 26,923 |
Effect of foreign currency translation | (19,183) |
Measurement-period adjustments | 0 |
Balance at August 31, 2016 | 479,513 |
Asia-Pacific | |
Goodwill [Roll Forward] | |
Balance at May 31, 2016 | 271,202 |
Goodwill acquired | 0 |
Effect of foreign currency translation | 8,564 |
Measurement-period adjustments | 0 |
Balance at August 31, 2016 | $ 279,766 |
GOODWILL AND OTHER INTANGIBLE37
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) | Aug. 31, 2016 | May 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated impairment | $ 0 | $ 0 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) | Jun. 21, 2016USD ($) | Aug. 31, 2016EUR (€)Rate |
Other Assets [Line Items] | ||
Gain as a result of acquisition of member interests in Visa Europe | $ 41,200,000 | |
Consideration received from sale | 37,700,000 | € 33,500,000 |
Preferred shares as if converted to common shares at closing | 22,900,000 | |
Value assigned to preferred shares based on transfer restrictions | 0 | |
Period of conversion of preferred shares into common shares | 12 years | |
Deferred consideration to be received | 3,500,000 | € 3,100,000 |
Interest rate on deferred consideration (as a percentage) | Rate | 4.00% | |
Minimum | ||
Other Assets [Line Items] | ||
Contingent earn out consideration | € | € 0 | |
Maximum | ||
Other Assets [Line Items] | ||
Contingent earn out consideration | $ 28,800,000 | € 25,600,000 |
LONG-TERM DEBT AND CREDIT FAC39
LONG-TERM DEBT AND CREDIT FACILITIES - Schedule of outstanding debt (Details) - USD ($) | Aug. 31, 2016 | May 31, 2016 | Jul. 31, 2015 |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 4,471,678,000 | $ 4,515,286,000 | |
Less current portion of long-term debt (face amounts of $192,300 and $145,938 at August 31, 2016 and May 31, 2016, respectively, less unamortized debt issuance costs of $10,327 and $10,442 at August 31, 2016 and May 31, 2016, respectively) and current portion of capital lease obligations of $39 and $46 at August 31, 2016 and May 31, 2016, respectively | 182,012,000 | 135,542,000 | |
Long-term debt | 4,289,666,000 | 4,379,744,000 | |
Debt instrument, face amount | 192,300,000 | 145,900,000 | |
Unamortized debt issuance expense | 10,327,000 | 10,442,000 | |
Current portion of capital lease obligation | 39,000 | 46,000 | |
Term loan | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 3,479,132,000 | 3,478,230,000 | |
Line of credit | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 992,500,000 | 1,037,000,000 | |
Capital lease obligations | |||
Debt Instrument [Line Items] | |||
Capital lease obligations | 46,000 | 56,000 | |
Five Year Unsecured Term Loan Due February 2019 | Term loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 3,528,288,000 | 3,530,000,000 | $ 1,750,000,000 |
Unamortized debt issuance expense | $ 49,156,000 | $ 51,770,000 |
LONG-TERM DEBT AND CREDIT FAC40
LONG-TERM DEBT AND CREDIT FACILITIES - Schedule of maturities of long term debt (Details) $ in Thousands | Aug. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 144,264 |
2,018 | 192,307 |
2,019 | 219,700 |
2,020 | 219,700 |
2,021 | 2,749,500 |
2,022 | 10,450 |
2023 and thereafter | 984,913 |
Total | $ 4,520,834 |
LONG-TERM DEBT AND CREDIT FAC41
LONG-TERM DEBT AND CREDIT FACILITIES - Narrative (Details) | Feb. 26, 2016USD ($) | Jul. 31, 2015USD ($) | Aug. 31, 2016USD ($)$ / sharesRate | Aug. 31, 2015USD ($) | May 31, 2016USD ($) | Feb. 28, 2019 | Feb. 28, 2018 | Aug. 31, 2017 | Feb. 28, 2017 | Aug. 28, 2015USD ($) | Oct. 31, 2014USD ($)Rate |
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 192,300,000 | $ 145,900,000 | |||||||||
Proceeds from issuance of debt | $ 2,000,000,000 | ||||||||||
Payment of debt issuance costs | $ 0 | $ 4,934,000 | 63,400,000 | ||||||||
Minimum interest coverage ratio | 2.25 | ||||||||||
Other restrictions on payments of dividends (in dollars per share) | $ / shares | $ 0.01 | ||||||||||
Interest expense | $ 43,000,000 | $ 13,000,000 | |||||||||
2016 Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum leverage ratio | 5 | ||||||||||
Term loan | Five Year Unsecured Term Loan Due February 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | 1,750,000,000 | $ 3,528,288,000 | 3,530,000,000 | ||||||||
Term loan | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 1,250,000,000 | ||||||||||
Term loan | Delayed Draw Term Loan Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 735,000,000 | ||||||||||
Term loan | Term Loan B | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | 1,045,000,000 | ||||||||||
Term loan | 2015 Term Loan due July 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | 43,800,000 | ||||||||||
Secured Debt | Delayed Draw Term Loan Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Periodic payment of debt | 1,700,000 | ||||||||||
Secured Debt | Term Loan B | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate under credit facility (as a percentage) | Rate | 4.02% | ||||||||||
Periodic payment of debt | 2,600,000 | ||||||||||
Secured Debt | Term Loan A | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate under credit facility (as a percentage) | Rate | 3.02% | ||||||||||
Secured Debt | Delayed Draw Term Loan Facility Maturing in May 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Periodic payment of debt | 8,600,000 | ||||||||||
Line of credit | Corporate Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate under credit facility (as a percentage) | 2.94% | ||||||||||
Fair value of amount outstanding | $ 992,500,000 | ||||||||||
Remaining borrowing capacity | $ 236,200,000 | 204,500,000 | |||||||||
Line of credit | LIBOR | Delayed Draw Term Loan Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Effective interest rate | Rate | 2.94% | ||||||||||
Line of credit | LIBOR | Revolving Credit Facility Expiring February 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Effective interest rate | Rate | 1.52% | ||||||||||
Standby letters of credit | Corporate Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of amount outstanding | $ 21,300,000 | 8,500,000 | |||||||||
Standby letters of credit | Revolving Credit Facility Expiring February 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | 100,000,000 | ||||||||||
Line of credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | 550,100,000 | ||||||||||
Remaining borrowing capacity | 744,300,000 | ||||||||||
Repayments of lines of credit | 46,600,000 | 42,900,000 | |||||||||
Amount outstanding under lines of credit | $ 332,100,000 | $ 378,400,000 | |||||||||
Short-term debt, weighted average interest rate | 1.98% | 1.80% | |||||||||
Average outstanding balance | $ 311,100,000 | ||||||||||
Interest rate swap | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate swap | $ 250,000,000 | $ 500,000,000 | |||||||||
Accumulated other comprehensive income related to interest rate | $ 5,900,000 | ||||||||||
Not Designated as Hedging Instrument | Interest rate swap | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Derivative, fixed interest rate | 1.34% | ||||||||||
Heartland Payment Systems, Inc | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 4,780,000,000 | ||||||||||
Scenario, Forecast | 2016 Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum leverage ratio | 4 | 4.25 | 4.5 | 4.75 |
LONG-TERM DEBT AND CREDIT FAC42
LONG-TERM DEBT AND CREDIT FACILITIES - Schedule of derivative instruments (Details) - Interest rate swap - USD ($) | Aug. 31, 2016 | May 31, 2016 | Aug. 28, 2015 | Oct. 31, 2014 |
Debt Instrument [Line Items] | ||||
Notional amount | $ 250,000,000 | $ 500,000,000 | ||
Accounts Payable and Accrued Liabilities | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps ($750 million notional) | $ 12,083,000 | $ 10,775,000 | ||
Notional amount | $ 750,000,000 |
LONG-TERM DEBT AND CREDIT FAC43
LONG-TERM DEBT AND CREDIT FACILITIES - Schedule of effect on other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Derivatives in cash flow hedging relationships: | ||
Amount of loss recognized in other comprehensive loss | $ 3,205 | $ 32 |
Amount of loss recognized in interest expense | $ 1,897 | $ 1,734 |
INCOME TAX - Narrative (Detail
INCOME TAX - Narrative (Details) | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 23.30% | 26.00% |
SHAREHOLDERS EQUITY (Details)
SHAREHOLDERS EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Class of Stock [Line Items] | ||
Remaining authorized repurchase amount (up to) | $ 199,300 | |
Repurchase of common stock (in shares) | 127,435 | 324,742 |
Repurchase of common stock | $ 67,633 | $ 37,917 |
Other than accelerated share repurchase program | ||
Class of Stock [Line Items] | ||
Repurchase of common stock (in shares) | 960,716 | 694,990 |
Repurchase of common stock | $ 67,600 | $ 37,900 |
Repurchase of common stock (in dollars per share) | $ 70.39 | $ 54.56 |
SHARE-BASED AWARDS AND OPTION46
SHARE-BASED AWARDS AND OPTIONS - Share-based Compensation Expense and Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation expense | $ 7,619 | $ 6,467 |
Income tax benefit | $ 3,572 | $ 2,358 |
SHARE-BASED AWARDS AND OPTION47
SHARE-BASED AWARDS AND OPTIONS - Share-Based Awards (Details) - Share-Based Awards shares in Thousands | 3 Months Ended |
Aug. 31, 2016$ / sharesshares | |
Shares | |
Unvested at May 31, 2016 (in shares) | shares | 1,606 |
Granted (in shares) | shares | 418 |
Vested (in shares) | shares | (687) |
Forfeited (in shares) | shares | (18) |
Unvested at August 31, 2016 (in shares) | shares | 1,319 |
Weighted-Average Grant-Date Fair Value | |
Unvested at May 31, 2016 (in USD per share) | $ / shares | $ 37.25 |
Granted (in USD per share) | $ / shares | 74.18 |
Vested (in USD per share) | $ / shares | 30.46 |
Forfeited (in USD per share) | $ / shares | 40.85 |
Unvested at August 31, 2016 (in USD per share) | $ / shares | $ 48.95 |
SHARE-BASED AWARDS AND OPTION48
SHARE-BASED AWARDS AND OPTIONS - Share-Based Awards Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 7,619 | $ 6,467 |
Share-Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of share-based awards vested | 20,900 | 15,700 |
Share-based compensation expense | 7,000 | $ 6,100 |
Compensation not yet recognized | $ 56,600 | |
Total unrecognized compensation cost, weighted average period | 2 years 3 months 18 days |
SHARE-BASED AWARDS AND OPTION49
SHARE-BASED AWARDS AND OPTIONS - Stock Options Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 72,733 | 72,393 |
Share-based compensation expense | $ 7,619 | $ 6,467 |
Aggregate intrinsic value of stock options exercised | 6,100 | 2,700 |
Total unrecognized compensation cost | $ 3,700 | |
Employee stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair market value (as a percentage) | 100.00% | |
Stock option term | 10 years | |
Share-based compensation expense | $ 400 | $ 200 |
Total unrecognized compensation cost, weighted average period | 2 years 1 month 6 days | |
Stock Option Plan 2011 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value for each option granted (in dollars per share) | $ 21.87 | $ 15.60 |
Granted Before Fiscal 2015 | Employee stock option | Performance period. year one | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award vesting rights | 25.00% | |
Granted Before Fiscal 2015 | Employee stock option | Performance period, year two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award vesting rights | 25.00% | |
Granted Before Fiscal 2015 | Employee stock option | Performance period, year three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award vesting rights | 25.00% | |
Granted Before Fiscal 2015 | Employee stock option | Performance period, year four | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award vesting rights | 25.00% | |
Granted Fiscal 2015 | Employee stock option | Performance period. year one | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award vesting rights | 33.00% | |
Granted Fiscal 2015 | Employee stock option | Performance period, year two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award vesting rights | 33.00% | |
Granted Fiscal 2015 | Employee stock option | Performance period, year three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award vesting rights | 33.00% |
SHARE-BASED AWARDS AND OPTION50
SHARE-BASED AWARDS AND OPTIONS - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | May 31, 2016 | |
Options | |||
Outstanding, beginning of period (in shares) | 811,000 | ||
Granted (in shares) | 72,733 | 72,393 | |
Forfeited (in shares) | (1,000) | ||
Exercised (in shares) | (111,000) | ||
Outstanding, end of period (in shares) | 772,000 | 811,000 | |
Options vested and exercisable (in shares) | 515,000 | ||
Weighted-Average Exercise Price | |||
Outstanding, weighted average exercise price, beginning of period (in dollars per share) | $ 32 | ||
Granted, weighted average exercise price (in dollars per share) | 75 | ||
Forfeited, weighted average exercise price (in dollars per share) | 23 | ||
Exercised, weighted average exercise price (in dollars per share) | 20 | ||
Outstanding, weighted average exercise price, end of period (in dollars per share) | 38 | $ 32 | |
Options vested and exercisable, weighted average exercise price (in dollars per share) | $ 29 | ||
Outstanding, weighted average remaining contractual term (in years) | 6 years 4 months 24 days | 5 years 9 months 18 days | |
Options vested and exercisable, weighted average remaining contractual term (in years) | 5 years 1 month 6 days | ||
Outstanding aggregate intrinsic value | $ 29.9 | $ 36.8 | |
Options vested and exercisable, aggregate intrinsic value | $ 24.2 |
SHARE-BASED AWARDS AND OPTION51
SHARE-BASED AWARDS AND OPTIONS - Valuation Assumptions (Details) - Employee stock option | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.05% | 1.62% |
Expected volatility | 31.58% | 28.65% |
Dividend yield | 0.06% | 0.10% |
Expected term (years) | 5 years | 5 years |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities (in shares) | 0 | 100,000 |
Basic weighted-average number of shares outstanding (in shares) | 153,901,000 | 130,328,000 |
Plus: Dilutive effect of stock options and other share-based awards (in shares) | 974,000 | 818,000 |
Diluted weighted-average number of shares outstanding (in shares) | 154,875,000 | 131,146,000 |
ACCUMULATED OTHER COMPREHENSI53
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning balance | $ 2,877,404,000 | $ 863,553,000 |
Other comprehensive income (loss) | (19,463,000) | (24,837,000) |
Balance, ending balance | 2,905,212,000 | 917,143,000 |
Other comprehensive income (loss) attributable to noncontrolling interest | 0 | 1,900,000 |
Accumulated Other Comprehensive Loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning balance | (246,050,000) | (185,992,000) |
Other comprehensive income (loss) | (19,461,000) | (26,735,000) |
Balance, ending balance | (265,511,000) | (212,727,000) |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning balance | (234,638,000) | (178,309,000) |
Other comprehensive income (loss) | (18,779,000) | (27,815,000) |
Balance, ending balance | (253,417,000) | (206,124,000) |
Unrealized Gains (Losses) on Hedging Activities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning balance | (6,755,000) | (3,874,000) |
Other comprehensive income (loss) | (790,000) | 1,080,000 |
Balance, ending balance | (7,545,000) | (2,794,000) |
Defined Benefit Pension Plans | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning balance | (4,657,000) | (3,809,000) |
Other comprehensive income (loss) | 108,000 | 0 |
Balance, ending balance | $ (4,549,000) | $ (3,809,000) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 939,492 | $ 748,796 |
Operating income (loss) for segments | 121,106 | 137,772 |
Depreciation and amortization | 103,186 | 38,757 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) for segments | (64,155) | (30,707) |
Depreciation and amortization | 1,432 | 1,613 |
North America | North America | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 711,765 | 530,857 |
Operating income (loss) for segments | 105,700 | 83,513 |
Depreciation and amortization | 86,915 | 23,743 |
Europe | Europe | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 169,565 | 168,357 |
Operating income (loss) for segments | 65,539 | 72,733 |
Depreciation and amortization | 10,413 | 10,344 |
Asia-Pacific | Asia-Pacific | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 58,162 | 49,582 |
Operating income (loss) for segments | 14,022 | 12,233 |
Depreciation and amortization | 4,426 | $ 3,057 |
Heartland Payment Systems, Inc | ||
Segment Reporting Information [Line Items] | ||
Acquisition related costs | $ 30,500 |