Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | GLOBAL PAYMENTS INC | |
Entity Central Index Key | 1,123,360 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 158,185,477 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 833,164 | $ 962,240 | $ 1,628,141 | $ 1,882,002 |
Operating expenses: | ||||
Cost of service | 264,544 | 469,149 | 516,930 | 925,085 |
Selling, general and administrative | 377,883 | 361,239 | 764,304 | 720,095 |
Total costs and expenses | 642,427 | 830,388 | 1,281,234 | 1,645,180 |
Operating income | 190,737 | 131,852 | 346,907 | 236,822 |
Other income (expense): | ||||
Interest and other income | 2,568 | 1,832 | 14,262 | 3,439 |
Interest and other expense | (47,720) | (48,361) | (93,325) | (89,658) |
Total nonoperating income (expense) | (45,152) | (46,529) | (79,063) | (86,219) |
Income before income taxes | 145,585 | 85,323 | 267,844 | 150,603 |
Provision for income taxes | (27,856) | (12,880) | (52,529) | (25,201) |
Net income | 117,729 | 72,443 | 215,315 | 125,402 |
Net income attributable to noncontrolling interests, net of income tax | (8,660) | (5,534) | (14,847) | (9,679) |
Net income attributable to Global Payments | $ 109,069 | $ 66,909 | $ 200,468 | $ 115,723 |
Earnings per share attributable to Global Payments: | ||||
Basic earnings per share (USD per share) | $ 0.69 | $ 0.44 | $ 1.26 | $ 0.76 |
Diluted earnings per share (USD per share) | $ 0.68 | $ 0.44 | $ 1.25 | $ 0.75 |
UNAUDITED CONSOLIDATED STATEME3
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 117,729 | $ 72,443 | $ 215,315 | $ 125,402 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (78,550) | 57,172 | (65,225) | 91,508 |
Income tax provision related to foreign currency translation adjustments | (763) | 0 | (365) | 0 |
Unrealized gains (losses) on hedging activities | 2,932 | (3,382) | 10,508 | (2,555) |
Reclassification of unrealized (gains) losses on hedging activities to interest expense | (1,104) | 1,897 | (1,167) | 3,493 |
Income tax (provision) benefit related to hedging activities | (445) | 661 | (2,310) | (249) |
Other, net | 52 | 3 | 0 | (214) |
Other comprehensive income (loss), net of tax | (77,878) | 56,351 | (58,559) | 91,983 |
Comprehensive income | 39,851 | 128,794 | 156,756 | 217,385 |
Comprehensive (income) loss attributable to noncontrolling interests | 2,551 | (17,535) | (14,930) | (22,404) |
Comprehensive income attributable to Global Payments | $ 42,402 | $ 111,259 | $ 141,826 | $ 194,981 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,099,529 | $ 1,335,855 |
Accounts receivable, net of allowances for doubtful accounts of $2,795 and $1,827, respectively | 317,222 | 301,887 |
Settlement processing assets | 2,033,938 | 2,459,292 |
Prepaid expenses and other current assets | 208,255 | 206,545 |
Total current assets | 3,658,944 | 4,303,579 |
Goodwill | 5,671,875 | 5,703,992 |
Other intangible assets, net | 1,997,367 | 2,181,707 |
Property and equipment, net | 615,803 | 588,348 |
Deferred income taxes | 10,049 | 13,146 |
Other noncurrent assets | 345,839 | 207,297 |
Total assets | 12,299,877 | 12,998,069 |
Current liabilities: | ||
Settlement lines of credit | 547,341 | 635,166 |
Current portion of long-term debt | 74,717 | 100,308 |
Accounts payable and accrued liabilities | 1,027,934 | 1,039,607 |
Settlement processing obligations | 1,714,375 | 2,040,509 |
Total current liabilities | 3,364,367 | 3,815,590 |
Long-term debt | 4,255,142 | 4,559,408 |
Deferred income taxes | 443,874 | 436,879 |
Other noncurrent liabilities | 220,493 | 220,961 |
Total liabilities | 8,283,876 | 9,032,838 |
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; 158,071,104 issued and outstanding at June 30, 2018 and 159,180,317 issued and outstanding at December 31, 2017 | 0 | 0 |
Paid-in capital | 2,254,783 | 2,379,774 |
Retained earnings | 1,819,213 | 1,597,897 |
Accumulated other comprehensive loss | (243,629) | (183,144) |
Total Global Payments shareholders’ equity | 3,830,367 | 3,794,527 |
Noncontrolling interests | 185,634 | 170,704 |
Total equity | 4,016,001 | 3,965,231 |
Total liabilities and equity | $ 12,299,877 | $ 12,998,069 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances for doubtful accounts | $ 2,795 | $ 1,827 |
Preferred stock, par value (USD per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 158,071,104 | 159,180,317 |
Common stock, shares outstanding (shares) | 158,071,104 | 159,180,317 |
UNAUDITED CONSOLIDATED STATEME6
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 215,315 | $ 125,402 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 69,088 | 51,197 |
Amortization of acquired intangibles | 176,303 | 165,117 |
Share-based compensation expense | 30,104 | 21,153 |
Provision for operating losses and bad debts | 22,942 | 25,940 |
Amortization of capitalized contract costs | 23,835 | 19,681 |
Deferred income taxes | (3,061) | (38,603) |
Other, net | (6,228) | 17,057 |
Changes in operating assets and liabilities, net of the effects of acquisitions: | ||
Accounts receivable | (21,763) | (4,901) |
Settlement processing assets and obligations, net | 95,232 | (63,523) |
Prepaid expenses and other assets | (92,154) | (25,007) |
Accounts payable and other liabilities | (2,857) | (25,452) |
Net cash provided by operating activities | 506,756 | 268,061 |
Cash flows from investing activities: | ||
Capital expenditures | (102,669) | (89,958) |
Proceeds from sales of property and equipment | 59 | 37,497 |
Other, net | (1,495) | (34,242) |
Net cash used in investing activities | (104,105) | (86,703) |
Cash flows from financing activities: | ||
Net repayments of settlement lines of credit | (88,325) | (88,490) |
Proceeds from long-term debt | 694,214 | 902,324 |
Repayments of long-term debt | (1,024,695) | (1,082,898) |
Payment of debt issuance costs | (10,884) | (9,461) |
Repurchase of common stock | (177,261) | (5,342) |
Proceeds from stock issued under share-based compensation plans | 6,340 | 6,188 |
Common stock repurchased - share-based compensation plans | (9,989) | (418) |
Distributions to noncontrolling interests | 0 | (9,301) |
Dividends paid | (3,171) | (3,551) |
Net cash used in financing activities | (613,771) | (290,949) |
Effect of exchange rate changes on cash | (25,206) | 27,388 |
Decrease in cash and cash equivalents | (236,326) | (82,203) |
Cash and cash equivalents, beginning of the period | 1,335,855 | 1,162,779 |
Cash and cash equivalents, end of the period | $ 1,099,529 | $ 1,080,576 |
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 at beginning of period (shares) at Dec. 31, 2016 | 152,186,000 | ||||||
Balance at beginning of period at Dec. 31, 2016 | $ 2,779,342 | $ 2,630,791 | $ 1,816,278 | $ 1,137,230 | $ (322,717) | $ 148,551 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 125,402 | 115,723 | 115,723 | 9,679 | |||
Other comprehensive income (loss), net of tax | 91,983 | 79,258 | 79,258 | 12,725 | |||
Stock issued under share-based compensation plans (shares) | 445,000 | ||||||
Stock issued under share-based compensation plans | 6,188 | 6,188 | 6,188 | ||||
Common stock repurchased - share based compensation plans (shares) | (9,000) | ||||||
Common stock repurchased - share-based compensation plans | (758) | (758) | (758) | ||||
Share-based compensation expense | 21,153 | 21,153 | 21,153 | ||||
Dissolution of a subsidiary | 0 | 7,998 | 7,998 | (7,998) | |||
Distributions to noncontrolling interest | (9,301) | (9,301) | |||||
Repurchase of common stock (shares) | (65,000) | ||||||
Repurchase of common stock | (5,820) | (5,820) | (3,972) | (1,848) | |||
Dividends paid ($0.02 per share) | (3,551) | (3,551) | (3,551) | ||||
Balance at end of period (shares) at Jun. 30, 2017 | 152,557,000 | ||||||
Balance at end of period at Jun. 30, 2017 | 3,004,638 | 2,850,982 | 1,838,889 | 1,255,552 | (243,459) | 153,656 | |
Balance at beginning of period (shares) at Dec. 31, 2017 | 159,180,000 | ||||||
Balance at beginning of period at Dec. 31, 2017 | 3,965,231 | 3,794,527 | 2,379,774 | 1,597,897 | (183,144) | 170,704 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 215,315 | 200,468 | 200,468 | 14,847 | |||
Other comprehensive income (loss), net of tax | (58,559) | (58,642) | (58,642) | 83 | |||
Stock issued under share-based compensation plans (shares) | 570,000 | ||||||
Stock issued under share-based compensation plans | 6,340 | 6,340 | 6,340 | ||||
Common stock repurchased - share based compensation plans (shares) | (67,000) | ||||||
Common stock repurchased - share-based compensation plans | (7,489) | (7,489) | (7,489) | ||||
Share-based compensation expense | 30,104 | 30,104 | 30,104 | ||||
Repurchase of common stock (shares) | (1,612,000) | ||||||
Repurchase of common stock | (180,897) | (180,897) | (153,946) | (26,951) | |||
Dividends paid ($0.02 per share) | (3,171) | (3,171) | (3,171) | ||||
Balance at end of period (shares) at Jun. 30, 2018 | 158,071,000 | ||||||
Balance at end of period at Jun. 30, 2018 | 4,016,001 | 3,830,367 | $ 2,254,783 | 1,819,213 | (243,629) | $ 185,634 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of adoption of new accounting standard | $ 49,127 | $ 49,127 | $ 50,970 | $ (1,843) |
UNAUDITED CONSOLIDATED STATEME8
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share (USD per share) | $ 0.02 | $ 0.02 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
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 and software solutions delivering innovative services to our customers globally. Our technologies, services and employee expertise enable us to provide a broad range of solutions that allow our customers to accept various payment types and operate their businesses more efficiently. We distribute our services across a variety of channels to customers in 30 countries throughout North America, Europe, the Asia-Pacific region and 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 December 31, 2017 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 but does not include all disclosures required by GAAP for annual financial statements. In the opinion of our management, all known adjustments necessary for a fair presentation of the results of the interim periods have been made. These adjustments consist of normal recurring accruals and estimates that affect the carrying amount of assets and liabilities. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 . 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. Recently Adopted Accounting Pronouncements New Revenue Accounting Standard We adopted Accounting Standards Update ("ASU") 2014-09, as well as other clarifications and technical guidance issued by the Financial Accounting Standards Board ("FASB") related to this new revenue standard (collectively codified in Accounting Standards Codification ("ASC") Topic 606: Revenue from Contracts with Customers , "ASC 606" and ASC Subtopic 340-40: Other Assets and Deferred Costs - Contracts with Customers , "ASC 340-40"), on January 1, 2018. We elected the modified retrospective transition method, which resulted in a net increase to retained earnings of $51.0 million for the cumulative effect of applying the standard. The primary component of the cumulative-effect adjustment was the result of changes in the accounting for certain costs to obtain customer contracts and the related income tax effects, which resulted in increases to other noncurrent assets and deferred income tax liabilities of $64.6 million and $15.6 million , respectively. Previously, we amortized these assets to expense over the related contract term. Under ASC 340-40, we now amortize these assets over the expected period of benefit, which is generally longer than the initial contract term. Under the new standard, we also capitalized certain costs that were not previously capitalized, including certain commissions and related payroll taxes and certain costs incurred to fulfill a contract before the performance obligation has been satisfied, primarily compensation to employees engaged in customer implementation activities in our technology-enabled businesses. Under the modified retrospective transition method, we are required to provide additional disclosures during 2018 of the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any. For the three and six months ended June 30, 2018 , we presented revenue net of certain payments made to third parties, including payment networks. This change in presentation had the effect of reducing our revenues and operating expenses by the same amounts. As a result, revenues, cost of service and selling, general and administrative expenses were lower than the amounts without the effect of the new accounting standard by $281.9 million , $265.0 million and $16.9 million , respectively, during the three months ended June 30, 2018; and lower than the amounts without the effect of the new accounting standard by $534.3 million , $500.9 million and $33.3 million , respectively, during the six months ended June 30, 2018. The adoption of ASC 606 did not have a material effect on any other line items in our consolidated statement of income for the three and six months ended June 30, 2018 or consolidated balance sheet as of June 30, 2018, and had no effect on our cash flows from operating activities, investing activities or financing activities included in our consolidated statement of cash flows for the six months ended June 30, 2018. Other Recently Adopted Accounting Standards Updates In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ." The ASU expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. In addition, the amendments in this update modify disclosure requirements for presentation of hedging activities. Those modifications include a tabular disclosure related to the effect on the income statement of fair value and cash flow hedges and eliminate the requirement to disclose the ineffective portion of the change in fair value of hedging instruments, if any. We adopted ASU 2017-12 on January 1, 2018 with no effect on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business ." The ASU clarifies the definition of a business, which affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The new standard is intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses, with the expectation that fewer will qualify as acquisitions (or disposals) of businesses. The ASU became effective for us on January 1, 2018. These amendments will be applied prospectively from the date of adoption. The effect of ASU 2017-01 will be dependent upon the nature of future acquisitions or dispositions that we make, if any. There was no effect on the consolidated financial statements for the six months ended June 30, 2018 . In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ." The amendments in this update state that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory, such as intellectual property and property and equipment, when the transfer occurs. We adopted ASU 2016-16 on January 1, 2018 using the modified retrospective transition method with no effect 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. We adopted ASU 2016-01 on January 1, 2018 using the modified retrospective transition method with no material effect on our consolidated financial statements. Recently Issued Pronouncements Not Yet Adopted New Lease Accounting Standard In February 2016, the FASB issued ASU 2016-02, "Leases." This update requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases. In addition, several new disclosures will be required. Although early adoption is permitted, we expect to adopt ASU 2016-02, as well as other related clarifications and interpretive guidance issued by the FASB, when it becomes effective for us on January 1, 2019. We plan to elect the optional modified retrospective transition method to apply the provisions of the new standard at the adoption date, which will result in recognition and measurement of leases as a cumulative-effect adjustment to opening retained earnings in the period of adoption. Under this transition method, we would not recast the prior financial statements presented. We have not completed our evaluation of the effect of ASU 2016-02 on our consolidated financial statements; however, we expect to recognize right of use assets and liabilities for our operating leases in the balance sheet upon adoption. To evaluate the potential effects of this new accounting standard on our consolidated financial statements, we are currently analyzing our existing leases, which primarily include real estate leases for office space throughout the markets in which we conduct business. We expect that we will have to implement new accounting processes and internal controls to meet the requirements for financial reporting and disclosures of our leases and are coordinating with various internal stakeholders to evaluate, design and implement these new processes and controls. We are also evaluating the process by which we will make the necessary calculations to support the requirements of the new accounting standard. We expect these evaluation and implementation activities will continue throughout most of 2018 prior to the effective date of adoption on January 1, 2019. Other Accounting Standards Updates Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This ASU provides an option to reclassify stranded tax effects within accumulated other comprehensive income ("AOCI") to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the U.S. Tax Cuts and Jobs Act of 2017 (the "2017 U.S. Tax Act") (or portion thereof) is recorded. This ASU requires disclosure of a description of the accounting policy for releasing income tax effects from AOCI; whether election is made to reclassify the stranded income tax effects from the 2017 U.S. Tax Act; and information about the income tax effects that are reclassified. This ASU is effective for annual and interim periods beginning after December 15, 2018. Although we do not believe adoption of ASU 2018-02 will have a material effect on our consolidated financial statements, we are continuing to evaluate whether to elect the option. 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 become effective for us on January 1, 2020. Early adoption is permitted for periods beginning on or after January 1, 2019. We are evaluating the effect of ASU 2016-13 on our consolidated financial statements. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS ACTIVE Network We acquired the communities and sports divisions of Athlaction Topco, LLC ("ACTIVE Network") on September 1, 2017 , for total purchase consideration of $1.2 billion . ACTIVE Network delivers cloud-based enterprise software, including payment technology solutions, to event organizers in the communities and health and fitness markets. This acquisition aligns with our technology-enabled, software driven strategy and adds an enterprise software business operating in two additional vertical markets that we believe offer attractive growth fundamentals. The following table summarizes the cash and non-cash components of the consideration transferred on September 1, 2017 (in thousands): Cash consideration paid to ACTIVE Network stockholders $ 599,497 Fair value of Global Payments common stock issued to ACTIVE Network stockholders 572,079 $ 1,171,576 We funded the cash consideration primarily by drawing on our Revolving Credit Facility (described in "Note 6 — Long-Term Debt and Lines of Credit"). The acquisition-date fair value of 6,357,509 shares of our common stock issued to the sellers was determined based on the share price of our common stock as of the acquisition date and the effect of certain transfer restrictions. 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 accounting for this acquisition was not complete as of June 30, 2018 . 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. In particular, 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. 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: December 31, 2017 Measurement- Period Adjustments June 30, 2018 (in thousands) Cash and cash equivalents $ 42,913 $ — $ 42,913 Property and equipment 21,985 (133 ) 21,852 Identified intangible assets 410,545 — 410,545 Other assets 87,240 (210 ) 87,030 Deferred income taxes (31,643 ) 4,003 (27,640 ) Other liabilities (144,132 ) (3,518 ) (147,650 ) Total identifiable net assets 386,908 142 387,050 Goodwill 784,668 (142 ) 784,526 Total purchase consideration $ 1,171,576 $ — $ 1,171,576 The measurement-period adjustments were the result of continued refinement of certain estimates, primarily those regarding the measurement of certain contingencies and deferred income taxes. As of June 30, 2018 , we still considered these balances to be provisional because we were still in the process of gathering and reviewing information to support the measurement of certain contingencies, tax positions and deferred income taxes. Goodwill of $784.5 million arising from the acquisition, included in the North America segment, was attributable to expected growth opportunities, potential synergies from combining our existing businesses and an assembled workforce. We expect that approximately 80% of the goodwill will be deductible for income tax purposes. The following reflects the provisional estimated fair values of the identified intangible assets and the respective weighted-average estimated amortization periods: Estimated Fair Values Weighted-Average Estimated Amortization Periods (in thousands) (years) Customer-related intangible assets $ 189,000 17 Acquired technology 153,300 9 Trademarks and trade names 59,400 15 Covenants-not-to-compete 8,845 3 Total estimated acquired intangible assets $ 410,545 13 The estimated fair value of customer-related intangible assets was determined using the income approach, which is based on projected cash flows discounted to their present value using discount rates that consider the timing and risk of the forecasted cash flows. The discount rate used is the average estimated value of a market participant’s cost of capital and debt, derived using customary market metrics. Acquired technology was valued using the replacement cost method, which required us to estimate the cost to construct an asset of equivalent utility at prices available at the time of the valuation analysis, with adjustments in value for physical deterioration and functional and economic obsolescence. Trademarks and trade names were valued using the relief-from-royalty approach. This method assumes that trademarks and trade names have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. This method required us to estimate the future revenue for the related brands, the appropriate royalty rate and the weighted-average cost of capital. The discount rate used is the average estimated value of a market participant’s cost of capital and debt, derived using customary market metrics. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES We are a leading worldwide provider of payment technology and software solutions delivering innovative services to our customers globally. Our technologies, services and employee expertise enable us to provide a broad range of solutions that allow our customers to accept various payment types and operate their businesses more efficiently. We distribute our services across a variety of channels to customers. The following disclosures in this note are applicable for the three and six months ended June 30, 2018 . The following tables present a disaggregation of our revenue from contracts with customers by distribution channel for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 North America Europe Asia-Pacific Total (in thousands) Direct: Relationship-led $ 244,861 $ 102,960 $ 32,371 $ 380,192 Technology-enabled 296,419 52,671 23,361 372,451 541,280 155,631 55,732 752,643 Wholesale 80,521 — — 80,521 $ 621,801 $ 155,631 $ 55,732 $ 833,164 Six Months Ended June 30, 2018 North America Europe Asia-Pacific Total (in thousands) Direct: Relationship-led $ 471,281 $ 195,174 $ 67,613 $ 734,068 Technology-enabled 579,776 103,734 45,790 729,300 1,051,057 298,908 113,403 1,463,368 Wholesale 164,773 — — 164,773 $ 1,215,830 $ 298,908 $ 113,403 $ 1,628,141 ASC 606 requires that we determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the three and six months ended June 30, 2018 , substantially all of our revenues were recognized over time. Nature of our Customer Arrangements Our payment services customers contract with us for payment services, which we provide in exchange for consideration for completed transactions. Our payment solutions are similar around the world in that we enable our customers to accept card, electronic and digital-based payments at the point of sale. Our comprehensive services include authorization services (including electronic draft capture), settlement and funding services, customer support and help-desk functions, chargeback resolution, payment security services, consolidated billing and statements and on-line reporting. In addition, we may sell or rent point-of-sale terminals or other equipment to customers. At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good or service that is distinct. For our payment services specifically, the nature of our promise to the customer is that we stand ready to process transactions the customer requests on a daily basis over the contract term. Since the timing and quantity of transactions to be processed by us is not determinable, we view payment services to comprise an obligation to stand ready to process as many transactions as the customer requires. Under a stand-ready obligation, the evaluation of the nature of our performance obligation is focused on each time increment rather than the underlying activities. Therefore, we view payment services to comprise a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. Accordingly, the promise to stand ready is accounted for as a single-series performance obligation. In order to provide our payment services, we route and clear each transaction through the applicable payment network. We obtain authorization for the transaction and request funds settlement from the card issuing financial institution through the payment network. When third parties are involved in the transfer of goods or services to our customer, we consider the nature of each specific promised good or service and apply judgment to determine whether we control the good or service before it is transferred to the customer or whether we are acting as an agent of the third party. To determine whether or not we control the good or service before it is transferred to the customer, we assess indicators including whether we or the third party is primarily responsible for fulfillment and which party has discretion in determining pricing for the good or service, as well as other considerations. Based on our assessment of these indicators, we have concluded that our promise to our customer to provide our payment services is distinct from the services provided by the card issuing financial institutions and payment networks in connection with payment transactions. We do not have the ability to direct the use of and obtain substantially all of the benefits of the services provided by the card issuing financial institutions and payment networks before those services are transferred to our customer, and on that basis, we do not control those services prior to being transferred to our customer. As a result, we present our revenue net of the interchange fees charged by the card issuing financial institutions and the fees charged by the payment networks. The majority of our processing services are priced as a percentage of transaction value or a specified fee per transaction, depending on the card type. We also charge other per occurrence fees based on specific services that may be unrelated to the number of transactions or transaction value. Given the nature of the promise and the underlying fees based on unknown quantities or outcomes of services to be performed over the contract term, the total consideration is determined to be variable consideration. The variable consideration for our payment processing service is usage-based and therefore it specifically relates to our efforts to satisfy our payment services obligation. In other words, the variability is satisfied each day the service is provided to the customer. We directly ascribe variable fees to the distinct day of service to which it relates, and we consider the services performed each day in order to ascribe the appropriate amount of total fees to that day. Therefore, we measure revenue for our payment processing service on a daily basis based on the services that are performed on that day. Certain of our technology-enabled customer arrangements contain multiple promises, such as payment services (as aforementioned, a series of distinct days of service), perpetual software licenses, software-as-a-service ("SaaS"), maintenance, installation services, training and equipment, each of which is evaluated to determine whether it represents a separate performance obligation. SaaS arrangements are generally offered on a subscription basis, providing the customers with access to the SaaS platform along with general support and maintenance services. Because these promised services within our SaaS arrangements are delivered concurrently over the contract term, we account for these promises as if they are a single performance obligation that includes a series of distinct services with the same pattern of transfer to the customer. In addition, certain installation services are not considered distinct from the SaaS, and are therefore recognized over the expected period of benefit. Once we determine the performance obligations and the transaction price, including an estimate of any variable consideration, we then allocate the transaction price to each performance obligation in the contract using a relative standalone selling price method. We determine standalone selling price based on the price at which the good or service is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price by considering all reasonably available information, including market conditions, trends or other company- or customer-specific factors. Substantially all of the performance obligations described above are satisfied over time. Only equipment sales, perpetual software licenses and certain professional services are generally transferred to the customer at a point in time. For certain other professional services that represent separate performance obligations, we generally use the input method and recognize revenue based on the number of hours incurred or services performed to date in relation to the total services expected to be required to satisfy the performance obligation. We satisfy the combined SaaS performance obligation by standing ready to provide access to the SaaS. Consideration for SaaS arrangements may consist of fixed- or usage-based fees. Revenue is recognized over the period for which the services are provided or by directly ascribing any variable fees to the distinct day of service based on the services that are performed on that day. Transaction Price Allocated to Future Performance Obligations ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations; however, as permitted by ASC 606, we have elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. As described above, our most significant performance obligations consist of variable consideration under a stand-ready series of distinct days of service. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material. Accounts Receivable, Contract Assets and Contract Liabilities A contract with a customer creates legal rights and obligations. As we perform under customer contracts, our right to consideration that is unconditional is considered to be accounts receivable. If our right to consideration for such performance is contingent upon a future event or satisfaction of additional performance obligations, the amount of revenues we have recognized in excess of the amount we have billed to the customer is recognized as a contract asset. Contract liabilities represent consideration received from customers in excess of revenues recognized. Contract assets and liabilities are presented net at the individual contract level in the consolidated balance sheet and are classified as current or noncurrent based on the nature of the underlying contractual rights and obligations. Net contract liabilities included in accounts payable and accrued liabilities on our consolidated balance sheet were $116.9 million at June 30, 2018 , $99.4 million at April 1, 2018 and $100.6 million at January 1, 2018. Net contract liabilities included in other noncurrent liabilities on our consolidated balance sheet were $8.3 million at June 30, 2018 , $8.1 million at April 1, 2018 and $6.0 million at January 1, 2018. Revenues for the three months ended June 30, 2018 included $37.0 million that was in contract liabilities at April 1, 2018. Revenues for the six months ended June 30, 2018 included $69.9 million that was in contract liabilities at January 1, 2018. Net contract assets were not material at June 30, 2018 or at January 1, 2018. Contract Costs We incur costs to obtain contracts with customers, including employee sales commissions and fees to business partners. At contract inception, we capitalize such costs that we expect to recover and that would not have been incurred if the contract had not been obtained. We also capitalize certain costs incurred to fulfill our contracts with customers that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligation under the contract and (iii) are expected to be recovered through revenue generated under the contract. At June 30, 2018 , we had net capitalized costs to obtain and fulfill contracts of $172.2 million and $8.3 million , respectively, included in other noncurrent assets on our consolidated balance sheet. Contract costs are amortized on a systematic basis consistent with the transfer to the customer of the goods or services to which the asset relates. A straight-line or proportional amortization method is used depending upon which method best depicts the pattern of transfer of the goods or services to the customer. In addition, these contract costs are evaluated for impairment by comparing, on a pooled basis, the expected future net cash flows from underlying customer relationships to the carrying amount of the capitalized contract costs. At June 30, 2018 , none of our capitalized contract costs were impaired. In order to determine the appropriate amortization period for contract costs, we consider a combination of factors, including customer attrition rates, estimated terms of customer relationships, the useful lives of technology we use to provide goods and services to our customers, whether future contract renewals are expected and if there is any incremental commission to be paid on a contract renewal. We amortize these assets over the expected period of benefit, which, based on the factors noted above, is typically 7 years . Costs to obtain a contract with an expected period of benefit of one year or less are recognized as an expense when incurred. During the three and six months ended June 30, 2018 , amortization of capitalized contract costs was $13.6 million and $23.8 million , respectively. |
SETTLEMENT PROCESSING ASSETS AN
SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS | 6 Months Ended |
Jun. 30, 2018 | |
Offsetting [Abstract] | |
SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS | SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS As of June 30, 2018 and December 31, 2017 , settlement processing assets and obligations consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Settlement processing assets: Interchange reimbursement $ 282,096 $ 304,964 (Liability to) receivable from members (11,607 ) 104,339 Receivable from networks 1,768,906 2,055,390 Exception items 9,979 7,867 Merchant reserves (15,436 ) (13,268 ) $ 2,033,938 $ 2,459,292 Settlement processing obligations: Interchange reimbursement $ 92,740 $ 72,053 Liability to members (22,152 ) (20,369 ) Liability to merchants (1,651,574 ) (1,961,107 ) Exception items 12,607 6,863 Merchant reserves (141,895 ) (133,907 ) Reserve for operating losses and sales allowances (4,101 ) (4,042 ) $ (1,714,375 ) $ (2,040,509 ) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS As of June 30, 2018 and December 31, 2017 , goodwill and other intangible assets consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Goodwill $ 5,671,875 $ 5,703,992 Other intangible assets: Customer-related intangible assets $ 2,064,828 $ 2,078,891 Acquired technologies 720,330 722,466 Trademarks and trade names 246,858 247,688 Contract-based intangible assets 134,587 171,522 3,166,603 3,220,567 Less accumulated amortization: Customer-related intangible assets 768,665 685,869 Acquired technologies 273,172 210,063 Trademarks and trade names 66,660 50,849 Contract-based intangible assets 60,739 92,079 1,169,236 1,038,860 $ 1,997,367 $ 2,181,707 The following table sets forth the changes in the carrying amount of goodwill for the six months ended June 30, 2018 : North America Europe Asia-Pacific Total (in thousands) Balance at December 31, 2017 $ 4,896,491 $ 513,138 $ 294,363 $ 5,703,992 Effect of foreign currency translation (3,355 ) (15,107 ) (13,513 ) (31,975 ) Measurement-period adjustments (142 ) — — (142 ) Balance at June 30, 2018 $ 4,892,994 $ 498,031 $ 280,850 $ 5,671,875 There was no accumulated impairment loss as of June 30, 2018 or December 31, 2017 . |
LONG-TERM DEBT AND LINES OF CRE
LONG-TERM DEBT AND LINES OF CREDIT | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND LINES OF CREDIT | LONG-TERM DEBT AND LINES OF CREDIT As of June 30, 2018 and December 31, 2017 , long-term debt consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Credit Facility: Term loans (face amounts of $4,005,196 and $3,932,677 at June 30, 2018 and December 31, 2017, respectively, less unamortized debt issuance costs of $37,337 and $37,961 at June 30, 2018 and December 31, 2017, respectively) $ 3,967,859 $ 3,894,716 Revolving Credit Facility 362,000 765,000 Total long-term debt 4,329,859 4,659,716 Less current portion of Credit Facility (face amounts of $83,239 and $108,979 at June 30, 2018 and December 31, 2017, respectively, less unamortized debt issuance costs of $8,522 and $8,671 at June 30, 2018 and December 31, 2017, respectively) 74,717 100,308 Long-term debt, excluding current portion $ 4,255,142 $ 4,559,408 Maturity requirements on long-term debt as of June 30, 2018 by year are as follows (in thousands): Years ending December 31, 2018 $ 41,620 2019 119,109 2020 154,979 2021 190,848 2022 262,587 2023 3,598,053 Total $ 4,367,196 Credit Facility We are party to a credit facility agreement with Bank of America, N.A., as administrative agent, and a syndicate of financial institutions as lenders and other agents (as amended from time to time, the "Credit Facility"). On March 20, 2018 , we entered into the First Refinancing Facility Amendment (the "Refinancing Amendment") to our Second Amended and Restated Credit Agreement, dated July 31, 2015 (as amended from time to time, the "Credit Agreement"). The Refinancing Amendment provided a new term B loan in an aggregate principal amount of $1.14 billion ("Term B-2 Loan") to refinance the entire amount of the previously existing term B-2 loan outstanding immediately prior to giving effect to this amendment. The Refinancing Amendment also reduced the interest rate margin applicable to our Term B-2 Loan by 25 basis points. On June 19, 2018 , we entered into the Fifth Amendment (the "Fifth Amendment") to the Credit Agreement. The Fifth Amendment increased the total financing capacity available under the Credit Facility to approximately $5.5 billion ; however our aggregate outstanding debt under the Credit Facility did not change as a result of this transaction. The Fifth Amendment reduced the interest rate margin applicable to our Term A Loan, Term A-2 Loan and Revolving Credit Facility (each defined below) by 25 basis points and extended the maturities of Term A Loan, Term A-2 Loan and the Revolving Credit Facility. As of June 30, 2018 , the Credit Facility, provided for secured financing comprised of (i) a $1.5 billion revolving credit facility (the "Revolving Credit Facility"); (ii) a $1.5 billion term loan (the "Term A Loan"), (iii) a $1.37 billion term loan (the "Term A-2 Loan") and (iv) the Term B-2 Loan. Substantially all of the assets of our domestic subsidiaries are pledged as collateral under the Credit Facility. The Credit Facility provides for an interest rate, at our election, of either London Interbank Offered Rate ("LIBOR") or a base rate, in each case plus a margin. As of June 30, 2018 , the interest rates on the Term A Loan, the Term A-2 Loan and the Term B-2 Loan were 3.59% , 3.48% and 3.84% , respectively. As of June 30, 2018 , the interest rate on the Revolving Credit Facility was 3.48% . In addition, we are required to pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility at an applicable rate per annum ranging from 0.20% to 0.30% depending on our leverage ratio. The Term A Loan and the Term A-2 Loan mature, and the Revolving Credit Facility expires, on January 20, 2023 . The Term B-2 Loan matures on April 22, 2023 . The Term A Loan and Term A-2 Loan principals must be repaid in quarterly installments in the amount of 0.625% of principal through June 2019 , increasing to 1.25% of principal through June 2021 , increasing to 1.875% of principal through June 2022 and increasing to 2.50% through December 2022 , with the remaining principal balance due upon maturity in January 2023 . The Term B-2 Loan principal must be repaid in quarterly installments in the amount of 0.25% of principal through March 2023 , with the remaining principal balance due upon maturity in April 2023 . The Credit Facility 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." The total available commitments under the Revolving Credit Facility at June 30, 2018 and December 31, 2017 were $1,125.4 million and $473.3 million , respectively. The portion of deferred debt issuance costs related to the Revolving Credit Facility is included in other noncurrent assets, and the portion of deferred debt issuance costs related to the term loans is reported as a reduction to the carrying amount of the term loans. Debt issuance costs are amortized as an adjustment to interest expense over the terms of the respective facilities. Settlement Lines of Credit In various markets where we do business, we have specialized lines of credit, which are restricted for use in funding settlement. The settlement lines of credit generally have variable interest rates, are subject to annual review and are denominated in local currency but may, in some cases, facilitate borrowings in multiple currencies. For certain of our settlement 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 June 30, 2018 and December 31, 2017 , a total of $48.2 million and $59.3 million , respectively, of cash on deposit was used to determine the available credit. As of June 30, 2018 and December 31, 2017 , respectively, we had $547.3 million and $635.2 million outstanding under these lines of credit with additional capacity of $764.2 million as of June 30, 2018 to fund settlement. The weighted-average interest rate on these borrowings was 2.45% and 1.97% at June 30, 2018 and December 31, 2017 , respectively. During the three months ended June 30, 2018 , the maximum and average outstanding balances under these lines of credit were $667.9 million and $396.4 million , respectively. Compliance with Covenants The Credit Facility contains customary affirmative and restrictive covenants, including, among others, financial covenants based on our leverage and interest coverage ratios, as defined in the agreement. As of June 30, 2018 , financial covenants under the Credit Facility required a leverage ratio no greater than: (i) 5.00 to 1.00 as of the end of any fiscal quarter ending during the period from April 1, 2018 through June 30, 2019 ; (ii) 4.75 to 1.00 as of the end of any fiscal quarter ending during the period from July 1, 2019 through June 30, 2020 ; and (iii) 4.50 to 1.00 as of the end of any fiscal quarter ending thereafter. The interest coverage ratio is required to be no less than 3.25 to 1.00 . The Credit Facility and settlement lines of credit also include various other covenants that are customary in such borrowings. The Credit Facility 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 Credit Facility 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 June 30, 2018 . 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. 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. 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 in the consolidated balance sheets: Derivative Financial Instruments Balance Sheet Location Weighted-Average Fixed Rate of Interest at June 30, 2018 Range of Maturity Dates at June 30, 2018 June 30, 2018 December 31, 2017 (in thousands) Interest rate swaps (Notional of $500 million at June 30, 2018) Prepaid expenses and other current assets 1.52% February 28, 2019 $ 2,544 $ — Interest rate swaps (Notional of $800 million at June 30, 2018 and $1,300 million at December 31, 2017) Other noncurrent assets 1.63% December 31, 2019 - March 31, 2021 $ 16,003 $ 9,202 The table below presents the effects of our interest rate swaps on the consolidated statements of income and comprehensive income for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (in thousands) Amount of unrealized gains (losses) recognized in other comprehensive income (loss) $ 2,932 $ (3,382 ) $ 10,508 $ (2,555 ) Amount of unrealized (gains) losses reclassified out of other comprehensive income (loss) to interest expense $ (1,104 ) $ 1,897 $ (1,167 ) $ 3,493 As of June 30, 2018 , the amount of net unrealized gains 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 $9.7 million . Interest Expense Interest expense was $48.1 million and $47.4 million for the three months ended June 30, 2018 and 2017 , respectively, and $93.5 million and $88.5 million for the six months ended June 30, 2018 and 2017 , respectively. |
INCOME TAX
INCOME TAX | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | INCOME TAX On December 22, 2017, the United States enacted the 2017 U.S. Tax Act, which resulted in numerous changes, including a reduction in the U.S. federal tax rate from 35% to 21% effective January 1, 2018 and the transition of the U.S. federal tax system to a territorial regime. As of June 30, 2018 , we have not completed our accounting for the effects of the 2017 U.S. Tax Act; however, we made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax as of December 31, 2017 pursuant to guidance provided in SEC Staff Accounting Bulletin No. 118, which in March 2018 was codified by the FASB in ASU 2018-05 – Income Taxes (Topic 740) . We are continuing to gather additional information to complete our accounting for these items and expect to complete our accounting within the prescribed measurement period. Our effective income tax rates were 19.1% and 15.1% for the three months ended June 30, 2018 and June 30, 2017 , respectively, and 19.6% and 16.7% for the six months ended June 30, 2018 and June 30, 2017 , respectively. Our effective income tax rates differed 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 2014 and U.K. federal income tax examinations for years ended on or before May 31, 2014 . |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY We make repurchases of our common stock mainly through the use of open market purchases and, at times, through accelerated share repurchase programs. As of June 30, 2018 , we were authorized to repurchase up to $419.1 million of our common stock. During the three and six months ended June 30, 2018 , through open market repurchase plans, we repurchased and retired 1,603,248 and 1,612,174 shares of our common stock, respectively, at a cost of $179.9 million and $180.9 million , respectively, or an average cost of $112.20 and $112.19 per share, respectively, including commissions. During the three and six months ended June 30, 2017 , through open market repurchase plans, we repurchased and retired 64,716 shares of our common stock at a cost of $5.8 million , or an average cost of $89.70 per share, including commissions. On July 27, 2018 , our board of directors declared a dividend of $0.01 per share payable on September 28, 2018 to common shareholders of record as of September 14, 2018 . |
SHARE-BASED AWARDS AND OPTIONS
SHARE-BASED AWARDS AND OPTIONS | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (in thousands) Share-based compensation expense $ 15,205 $ 12,337 $ 30,104 $ 21,153 Income tax benefit $ 3,377 $ 4,199 $ 6,662 $ 7,265 Share-Based Awards The following table summarizes the changes in unvested restricted stock and performance awards for the six months ended June 30, 2018 : Shares Weighted-Average Grant-Date Fair Value (in thousands) Unvested at December 31, 2017 1,226 $78.29 Granted 485 114.78 Vested (203 ) 75.77 Forfeited (26 ) 85.67 Unvested at June 30, 2018 1,482 $90.43 The total fair value of restricted stock and performance awards vested during the six months ended June 30, 2018 and June 30, 2017 was $22.8 million and $2.2 million , respectively. For restricted stock and performance awards, we recognized compensation expense of $13.6 million and $11.2 million during the three months ended June 30, 2018 and June 30, 2017 , respectively, and $27.4 million and $19.2 million during the six months ended June 30, 2018 and June 30, 2017 , respectively. As of June 30, 2018 , there was $ 81.0 million of unrecognized compensation expense related to unvested restricted stock and performance awards that we expect to recognize over a weighted-average period of 2.1 years. Our restricted stock and performance award plans provide for accelerated vesting under certain conditions. Stock Options The following summarizes changes in stock option activity for the six months ended June 30, 2018 : Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at December 31, 2017 723 $47.79 6.4 $37.9 Granted 103 114.70 Forfeited (4 ) 19.64 Exercised (49 ) 21.85 Outstanding at June 30, 2018 773 $58.45 6.8 $41.3 Options vested and exercisable at June 30, 2018 491 $41.79 5.7 $34.2 We recognized compensation expense for stock options of $0.9 million and $0.7 million during the three months ended June 30, 2018 and June 30, 2017 , respectively, and $1.5 million and $1.3 million during the six months ended June 30, 2018 and June 30, 2017 , respectively. The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2018 and June 30, 2017 was $4.6 million and $7.5 million , respectively. As of June 30, 2018 , we had $5.6 million of unrecognized compensation expense related to unvested stock options that we expect to recognize over a weighted-average period of 2.2 years. The weighted-average grant-date fair value of each stock option granted during the six months ended June 30, 2018 and June 30, 2017 was $35.09 and $23.68 , respectively. Fair value was estimated on the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions: Six Months Ended June 30, 2018 June 30, 2017 Risk-free interest rate 2.60% 1.99% Expected volatility 29% 30% Dividend yield 0.04% 0.06% 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 | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share ("EPS") is computed by dividing 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 EPS 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 EPS. 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 EPS. The following table sets forth the computation of diluted weighted-average number of shares outstanding for the three and six months ended June 30, 2018 and June 30, 2017 : Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (in thousands) Basic weighted-average number of shares outstanding 159,003 152,525 159,161 152,415 Plus: Dilutive effect of stock options and other share-based awards 674 1,030 679 990 Diluted weighted-average number of shares outstanding 159,677 153,555 159,840 153,405 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2018 | |
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 income (loss), net of tax, were as follows for the three and six months ended June 30, 2018 and June 30, 2017 : Foreign Currency Translation Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at March 31, 2018 $ (185,269 ) $ 12,647 $ (4,339 ) $ (176,961 ) Other comprehensive income (loss), net of tax (68,103 ) 1,383 52 (66,668 ) Balance at June 30, 2018 $ (253,372 ) $ 14,030 $ (4,287 ) $ (243,629 ) Balance at March 31, 2017 $ (284,835 ) $ 873 $ (3,844 ) $ (287,806 ) Other comprehensive income (loss), net of tax 45,166 (822 ) 3 44,347 Balance at June 30, 2017 $ (239,669 ) $ 51 $ (3,841 ) $ (243,459 ) Other comprehensive loss (income) attributable to noncontrolling interests, which relates only to foreign currency translation, was $11.2 million and $(12.0) million for the three months ended June 30, 2018 and June 30, 2017 , respectively. Foreign Currency Translation Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at December 31, 2017 $ (185,856 ) $ 6,999 $ (4,287 ) $ (183,144 ) Other comprehensive income (loss), net of tax (65,673 ) 7,031 — (58,642 ) Cumulative effect of adoption of new accounting standard (1,843 ) — — (1,843 ) Balance at June 30, 2018 $ (253,372 ) $ 14,030 $ (4,287 ) $ (243,629 ) Balance at December 31, 2016 $ (318,450 ) $ (640 ) $ (3,627 ) $ (322,717 ) Other comprehensive income (loss), net of tax 78,781 691 (214 ) 79,258 Balance at June 30, 2017 $ (239,669 ) $ 51 $ (3,841 ) $ (243,459 ) Other comprehensive income attributable to noncontrolling interests, which relates only to foreign currency translation, was $0.1 million and $12.7 million for the six months ended June 30, 2018 and June 30, 2017 , respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We operate in three reportable segments: North America, Europe and Asia-Pacific. 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 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 December 31, 2017 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 was as follows for the three and six months ended June 30, 2018 and June 30, 2017 : Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (in thousands) Revenues (1) (2) : North America $ 621,801 $ 710,965 $ 1,215,830 $ 1,398,009 Europe 155,631 186,506 298,908 352,054 Asia-Pacific 55,732 64,769 113,403 131,939 Consolidated revenues $ 833,164 $ 962,240 $ 1,628,141 $ 1,882,002 Operating income (loss) (2) : North America $ 147,184 $ 112,176 $ 272,588 $ 206,259 Europe 82,682 65,673 153,230 120,180 Asia-Pacific 19,577 17,535 43,351 37,289 Corporate (3) (58,706 ) (63,532 ) (122,262 ) (126,906 ) Consolidated operating income $ 190,737 $ 131,852 $ 346,907 $ 236,822 Depreciation and amortization (2) : North America $ 105,433 $ 89,455 $ 207,958 $ 182,163 Europe 11,775 11,487 24,520 23,063 Asia-Pacific 4,726 4,308 9,359 7,584 Corporate 1,714 2,030 3,555 3,504 Consolidated depreciation and amortization $ 123,648 $ 107,280 $ 245,392 $ 216,314 (1) As more fully described in "Note 1 —Basis of Presentation and Summary of Significant Accounting Policies" and "Note 3 —Revenues," we adopted a new revenue accounting standard on January 1, 2018 that results in revenue being presented net of certain fees that we pay to third parties. This change in presentation affected our reported revenues and operating expenses during the three and six months ended June 30, 2018 by the same amount and had no effect on operating income. (2) Revenues, operating income and depreciation and amortization reflect the effect of acquired businesses from the respective dates of acquisition. For further discussion, see "Note 2 — Acquisitions." (3) During the three and six months ended June 30, 2018 , operating loss for Corporate included acquisition and integration expenses of $8.1 million and $26.4 million , respectively. During the three and six months ended June 30, 2017 , operating loss for Corporate included acquisition and integration expenses of $21.9 million and $48.0 million , respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases In May 2017 , we sold our operating facility in Jeffersonville, Indiana, which we acquired as part of the Heartland merger, for $37.5 million and simultaneously leased the property back for an initial term of 20 years, followed by four optional renewal terms of five years. The arrangement met the criteria to be treated as a sale for accounting purposes, and as a result, we derecognized the associated property. There was no resulting gain or loss on the sale because the proceeds received were equal to the carrying amount of the property. We are accounting for the lease as an operating lease. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On August 2, 2018 , we announced our plan to acquire AdvancedMD, Inc. ("AdvancedMD"), a provider of cloud-based enterprise software solutions to small-to-medium sized ambulatory physician practices in the United States. We believe the acquisition will expand our software-driven payments strategy by enabling us to enter the healthcare vertical market, a large and fragmented market with strong payment fundamentals and attractive growth opportunities. Pursuant to the terms and subject to the conditions set forth in the purchase agreement, we will pay the seller cash consideration of approximately $700 million , which we plan to fund with cash on hand and our Credit Facility. We expect the acquisition to close during the fourth quarter of 2018, subject to regulatory approval and customary closing conditions. |
BASIS OF PRESENTATION AND SUM23
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Business, consolidation and presentation | Business, consolidation and presentation — We are a leading worldwide provider of payment technology and software solutions delivering innovative services to our customers globally. Our technologies, services and employee expertise enable us to provide a broad range of solutions that allow our customers to accept various payment types and operate their businesses more efficiently. We distribute our services across a variety of channels to customers in 30 countries throughout North America, Europe, the Asia-Pacific region and 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 December 31, 2017 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 but does not include all disclosures required by GAAP for annual financial statements. In the opinion of our management, all known adjustments necessary for a fair presentation of the results of the interim periods have been made. These adjustments consist of normal recurring accruals and estimates that affect the carrying amount of assets and liabilities. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 . |
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. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements New Revenue Accounting Standard We adopted Accounting Standards Update ("ASU") 2014-09, as well as other clarifications and technical guidance issued by the Financial Accounting Standards Board ("FASB") related to this new revenue standard (collectively codified in Accounting Standards Codification ("ASC") Topic 606: Revenue from Contracts with Customers , "ASC 606" and ASC Subtopic 340-40: Other Assets and Deferred Costs - Contracts with Customers , "ASC 340-40"), on January 1, 2018. We elected the modified retrospective transition method, which resulted in a net increase to retained earnings of $51.0 million for the cumulative effect of applying the standard. The primary component of the cumulative-effect adjustment was the result of changes in the accounting for certain costs to obtain customer contracts and the related income tax effects, which resulted in increases to other noncurrent assets and deferred income tax liabilities of $64.6 million and $15.6 million , respectively. Previously, we amortized these assets to expense over the related contract term. Under ASC 340-40, we now amortize these assets over the expected period of benefit, which is generally longer than the initial contract term. Under the new standard, we also capitalized certain costs that were not previously capitalized, including certain commissions and related payroll taxes and certain costs incurred to fulfill a contract before the performance obligation has been satisfied, primarily compensation to employees engaged in customer implementation activities in our technology-enabled businesses. Under the modified retrospective transition method, we are required to provide additional disclosures during 2018 of the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any. For the three and six months ended June 30, 2018 , we presented revenue net of certain payments made to third parties, including payment networks. This change in presentation had the effect of reducing our revenues and operating expenses by the same amounts. As a result, revenues, cost of service and selling, general and administrative expenses were lower than the amounts without the effect of the new accounting standard by $281.9 million , $265.0 million and $16.9 million , respectively, during the three months ended June 30, 2018; and lower than the amounts without the effect of the new accounting standard by $534.3 million , $500.9 million and $33.3 million , respectively, during the six months ended June 30, 2018. The adoption of ASC 606 did not have a material effect on any other line items in our consolidated statement of income for the three and six months ended June 30, 2018 or consolidated balance sheet as of June 30, 2018, and had no effect on our cash flows from operating activities, investing activities or financing activities included in our consolidated statement of cash flows for the six months ended June 30, 2018. Other Recently Adopted Accounting Standards Updates In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ." The ASU expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. In addition, the amendments in this update modify disclosure requirements for presentation of hedging activities. Those modifications include a tabular disclosure related to the effect on the income statement of fair value and cash flow hedges and eliminate the requirement to disclose the ineffective portion of the change in fair value of hedging instruments, if any. We adopted ASU 2017-12 on January 1, 2018 with no effect on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business ." The ASU clarifies the definition of a business, which affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The new standard is intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses, with the expectation that fewer will qualify as acquisitions (or disposals) of businesses. The ASU became effective for us on January 1, 2018. These amendments will be applied prospectively from the date of adoption. The effect of ASU 2017-01 will be dependent upon the nature of future acquisitions or dispositions that we make, if any. There was no effect on the consolidated financial statements for the six months ended June 30, 2018 . In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ." The amendments in this update state that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory, such as intellectual property and property and equipment, when the transfer occurs. We adopted ASU 2016-16 on January 1, 2018 using the modified retrospective transition method with no effect 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. We adopted ASU 2016-01 on January 1, 2018 using the modified retrospective transition method with no material effect on our consolidated financial statements. Recently Issued Pronouncements Not Yet Adopted New Lease Accounting Standard In February 2016, the FASB issued ASU 2016-02, "Leases." This update requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases. In addition, several new disclosures will be required. Although early adoption is permitted, we expect to adopt ASU 2016-02, as well as other related clarifications and interpretive guidance issued by the FASB, when it becomes effective for us on January 1, 2019. We plan to elect the optional modified retrospective transition method to apply the provisions of the new standard at the adoption date, which will result in recognition and measurement of leases as a cumulative-effect adjustment to opening retained earnings in the period of adoption. Under this transition method, we would not recast the prior financial statements presented. We have not completed our evaluation of the effect of ASU 2016-02 on our consolidated financial statements; however, we expect to recognize right of use assets and liabilities for our operating leases in the balance sheet upon adoption. To evaluate the potential effects of this new accounting standard on our consolidated financial statements, we are currently analyzing our existing leases, which primarily include real estate leases for office space throughout the markets in which we conduct business. We expect that we will have to implement new accounting processes and internal controls to meet the requirements for financial reporting and disclosures of our leases and are coordinating with various internal stakeholders to evaluate, design and implement these new processes and controls. We are also evaluating the process by which we will make the necessary calculations to support the requirements of the new accounting standard. We expect these evaluation and implementation activities will continue throughout most of 2018 prior to the effective date of adoption on January 1, 2019. Other Accounting Standards Updates Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This ASU provides an option to reclassify stranded tax effects within accumulated other comprehensive income ("AOCI") to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the U.S. Tax Cuts and Jobs Act of 2017 (the "2017 U.S. Tax Act") (or portion thereof) is recorded. This ASU requires disclosure of a description of the accounting policy for releasing income tax effects from AOCI; whether election is made to reclassify the stranded income tax effects from the 2017 U.S. Tax Act; and information about the income tax effects that are reclassified. This ASU is effective for annual and interim periods beginning after December 15, 2018. Although we do not believe adoption of ASU 2018-02 will have a material effect on our consolidated financial statements, we are continuing to evaluate whether to elect the option. 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 become effective for us on January 1, 2020. Early adoption is permitted for periods beginning on or after January 1, 2019. We are evaluating the effect of ASU 2016-13 on our consolidated financial statements. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Consideration Transferred in Business Acquisition | The following table summarizes the cash and non-cash components of the consideration transferred on September 1, 2017 (in thousands): Cash consideration paid to ACTIVE Network stockholders $ 599,497 Fair value of Global Payments common stock issued to ACTIVE Network stockholders 572,079 $ 1,171,576 |
Schedule of 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: December 31, 2017 Measurement- Period Adjustments June 30, 2018 (in thousands) Cash and cash equivalents $ 42,913 $ — $ 42,913 Property and equipment 21,985 (133 ) 21,852 Identified intangible assets 410,545 — 410,545 Other assets 87,240 (210 ) 87,030 Deferred income taxes (31,643 ) 4,003 (27,640 ) Other liabilities (144,132 ) (3,518 ) (147,650 ) Total identifiable net assets 386,908 142 387,050 Goodwill 784,668 (142 ) 784,526 Total purchase consideration $ 1,171,576 $ — $ 1,171,576 |
Schedule of Fair Values of Intangible Assets Acquired and Respective Weighted-Average Amortization Periods | The following reflects the provisional estimated fair values of the identified intangible assets and the respective weighted-average estimated amortization periods: Estimated Fair Values Weighted-Average Estimated Amortization Periods (in thousands) (years) Customer-related intangible assets $ 189,000 17 Acquired technology 153,300 9 Trademarks and trade names 59,400 15 Covenants-not-to-compete 8,845 3 Total estimated acquired intangible assets $ 410,545 13 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present a disaggregation of our revenue from contracts with customers by distribution channel for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 North America Europe Asia-Pacific Total (in thousands) Direct: Relationship-led $ 244,861 $ 102,960 $ 32,371 $ 380,192 Technology-enabled 296,419 52,671 23,361 372,451 541,280 155,631 55,732 752,643 Wholesale 80,521 — — 80,521 $ 621,801 $ 155,631 $ 55,732 $ 833,164 Six Months Ended June 30, 2018 North America Europe Asia-Pacific Total (in thousands) Direct: Relationship-led $ 471,281 $ 195,174 $ 67,613 $ 734,068 Technology-enabled 579,776 103,734 45,790 729,300 1,051,057 298,908 113,403 1,463,368 Wholesale 164,773 — — 164,773 $ 1,215,830 $ 298,908 $ 113,403 $ 1,628,141 |
SETTLEMENT PROCESSING ASSETS 26
SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Offsetting [Abstract] | |
Schedule of Offsetting Assets | As of June 30, 2018 and December 31, 2017 , settlement processing assets and obligations consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Settlement processing assets: Interchange reimbursement $ 282,096 $ 304,964 (Liability to) receivable from members (11,607 ) 104,339 Receivable from networks 1,768,906 2,055,390 Exception items 9,979 7,867 Merchant reserves (15,436 ) (13,268 ) $ 2,033,938 $ 2,459,292 Settlement processing obligations: Interchange reimbursement $ 92,740 $ 72,053 Liability to members (22,152 ) (20,369 ) Liability to merchants (1,651,574 ) (1,961,107 ) Exception items 12,607 6,863 Merchant reserves (141,895 ) (133,907 ) Reserve for operating losses and sales allowances (4,101 ) (4,042 ) $ (1,714,375 ) $ (2,040,509 ) |
Schedule of Offsetting Liabilities | As of June 30, 2018 and December 31, 2017 , settlement processing assets and obligations consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Settlement processing assets: Interchange reimbursement $ 282,096 $ 304,964 (Liability to) receivable from members (11,607 ) 104,339 Receivable from networks 1,768,906 2,055,390 Exception items 9,979 7,867 Merchant reserves (15,436 ) (13,268 ) $ 2,033,938 $ 2,459,292 Settlement processing obligations: Interchange reimbursement $ 92,740 $ 72,053 Liability to members (22,152 ) (20,369 ) Liability to merchants (1,651,574 ) (1,961,107 ) Exception items 12,607 6,863 Merchant reserves (141,895 ) (133,907 ) Reserve for operating losses and sales allowances (4,101 ) (4,042 ) $ (1,714,375 ) $ (2,040,509 ) |
GOODWILL AND OTHER INTANGIBLE27
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | As of June 30, 2018 and December 31, 2017 , goodwill and other intangible assets consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Goodwill $ 5,671,875 $ 5,703,992 Other intangible assets: Customer-related intangible assets $ 2,064,828 $ 2,078,891 Acquired technologies 720,330 722,466 Trademarks and trade names 246,858 247,688 Contract-based intangible assets 134,587 171,522 3,166,603 3,220,567 Less accumulated amortization: Customer-related intangible assets 768,665 685,869 Acquired technologies 273,172 210,063 Trademarks and trade names 66,660 50,849 Contract-based intangible assets 60,739 92,079 1,169,236 1,038,860 $ 1,997,367 $ 2,181,707 |
Schedule of Carrying Amount of Goodwill | The following table sets forth the changes in the carrying amount of goodwill for the six months ended June 30, 2018 : North America Europe Asia-Pacific Total (in thousands) Balance at December 31, 2017 $ 4,896,491 $ 513,138 $ 294,363 $ 5,703,992 Effect of foreign currency translation (3,355 ) (15,107 ) (13,513 ) (31,975 ) Measurement-period adjustments (142 ) — — (142 ) Balance at June 30, 2018 $ 4,892,994 $ 498,031 $ 280,850 $ 5,671,875 |
LONG-TERM DEBT AND LINES OF C28
LONG-TERM DEBT AND LINES OF CREDIT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | As of June 30, 2018 and December 31, 2017 , long-term debt consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Credit Facility: Term loans (face amounts of $4,005,196 and $3,932,677 at June 30, 2018 and December 31, 2017, respectively, less unamortized debt issuance costs of $37,337 and $37,961 at June 30, 2018 and December 31, 2017, respectively) $ 3,967,859 $ 3,894,716 Revolving Credit Facility 362,000 765,000 Total long-term debt 4,329,859 4,659,716 Less current portion of Credit Facility (face amounts of $83,239 and $108,979 at June 30, 2018 and December 31, 2017, respectively, less unamortized debt issuance costs of $8,522 and $8,671 at June 30, 2018 and December 31, 2017, respectively) 74,717 100,308 Long-term debt, excluding current portion $ 4,255,142 $ 4,559,408 |
Schedule of Maturities of Long-Term Debt | Maturity requirements on long-term debt as of June 30, 2018 by year are as follows (in thousands): Years ending December 31, 2018 $ 41,620 2019 119,109 2020 154,979 2021 190,848 2022 262,587 2023 3,598,053 Total $ 4,367,196 |
Schedule of Derivative Instruments | The table below presents the fair values of our derivative financial instruments designated as cash flow hedges included in the consolidated balance sheets: Derivative Financial Instruments Balance Sheet Location Weighted-Average Fixed Rate of Interest at June 30, 2018 Range of Maturity Dates at June 30, 2018 June 30, 2018 December 31, 2017 (in thousands) Interest rate swaps (Notional of $500 million at June 30, 2018) Prepaid expenses and other current assets 1.52% February 28, 2019 $ 2,544 $ — Interest rate swaps (Notional of $800 million at June 30, 2018 and $1,300 million at December 31, 2017) Other noncurrent assets 1.63% December 31, 2019 - March 31, 2021 $ 16,003 $ 9,202 |
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 comprehensive income for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (in thousands) Amount of unrealized gains (losses) recognized in other comprehensive income (loss) $ 2,932 $ (3,382 ) $ 10,508 $ (2,555 ) Amount of unrealized (gains) losses reclassified out of other comprehensive income (loss) to interest expense $ (1,104 ) $ 1,897 $ (1,167 ) $ 3,493 |
SHARE-BASED AWARDS AND OPTIONS
SHARE-BASED AWARDS AND OPTIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of 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 Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (in thousands) Share-based compensation expense $ 15,205 $ 12,337 $ 30,104 $ 21,153 Income tax benefit $ 3,377 $ 4,199 $ 6,662 $ 7,265 |
Schedule of Changes in Non-Vested Restricted Stock Awards Activity | The following table summarizes the changes in unvested restricted stock and performance awards for the six months ended June 30, 2018 : Shares Weighted-Average Grant-Date Fair Value (in thousands) Unvested at December 31, 2017 1,226 $78.29 Granted 485 114.78 Vested (203 ) 75.77 Forfeited (26 ) 85.67 Unvested at June 30, 2018 1,482 $90.43 |
Schedule of Stock Option Activity | The following summarizes changes in stock option activity for the six months ended June 30, 2018 : Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at December 31, 2017 723 $47.79 6.4 $37.9 Granted 103 114.70 Forfeited (4 ) 19.64 Exercised (49 ) 21.85 Outstanding at June 30, 2018 773 $58.45 6.8 $41.3 Options vested and exercisable at June 30, 2018 491 $41.79 5.7 $34.2 |
Schedule of Stock Option Valuation Assumptions | Fair value was estimated on the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions: Six Months Ended June 30, 2018 June 30, 2017 Risk-free interest rate 2.60% 1.99% Expected volatility 29% 30% Dividend yield 0.04% 0.06% Expected term (years) 5 5 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted-Average Shares Outstanding | The following table sets forth the computation of diluted weighted-average number of shares outstanding for the three and six months ended June 30, 2018 and June 30, 2017 : Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (in thousands) Basic weighted-average number of shares outstanding 159,003 152,525 159,161 152,415 Plus: Dilutive effect of stock options and other share-based awards 674 1,030 679 990 Diluted weighted-average number of shares outstanding 159,677 153,555 159,840 153,405 |
ACCUMULATED OTHER COMPREHENSI31
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Foreign Currency Translation Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at December 31, 2017 $ (185,856 ) $ 6,999 $ (4,287 ) $ (183,144 ) Other comprehensive income (loss), net of tax (65,673 ) 7,031 — (58,642 ) Cumulative effect of adoption of new accounting standard (1,843 ) — — (1,843 ) Balance at June 30, 2018 $ (253,372 ) $ 14,030 $ (4,287 ) $ (243,629 ) Balance at December 31, 2016 $ (318,450 ) $ (640 ) $ (3,627 ) $ (322,717 ) Other comprehensive income (loss), net of tax 78,781 691 (214 ) 79,258 Balance at June 30, 2017 $ (239,669 ) $ 51 $ (3,841 ) $ (243,459 ) The changes in the accumulated balances for each component of other comprehensive income (loss), net of tax, were as follows for the three and six months ended June 30, 2018 and June 30, 2017 : Foreign Currency Translation Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at March 31, 2018 $ (185,269 ) $ 12,647 $ (4,339 ) $ (176,961 ) Other comprehensive income (loss), net of tax (68,103 ) 1,383 52 (66,668 ) Balance at June 30, 2018 $ (253,372 ) $ 14,030 $ (4,287 ) $ (243,629 ) Balance at March 31, 2017 $ (284,835 ) $ 873 $ (3,844 ) $ (287,806 ) Other comprehensive income (loss), net of tax 45,166 (822 ) 3 44,347 Balance at June 30, 2017 $ (239,669 ) $ 51 $ (3,841 ) $ (243,459 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information on segments and reconciliations to consolidated revenues and consolidated operating income was as follows for the three and six months ended June 30, 2018 and June 30, 2017 : Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (in thousands) Revenues (1) (2) : North America $ 621,801 $ 710,965 $ 1,215,830 $ 1,398,009 Europe 155,631 186,506 298,908 352,054 Asia-Pacific 55,732 64,769 113,403 131,939 Consolidated revenues $ 833,164 $ 962,240 $ 1,628,141 $ 1,882,002 Operating income (loss) (2) : North America $ 147,184 $ 112,176 $ 272,588 $ 206,259 Europe 82,682 65,673 153,230 120,180 Asia-Pacific 19,577 17,535 43,351 37,289 Corporate (3) (58,706 ) (63,532 ) (122,262 ) (126,906 ) Consolidated operating income $ 190,737 $ 131,852 $ 346,907 $ 236,822 Depreciation and amortization (2) : North America $ 105,433 $ 89,455 $ 207,958 $ 182,163 Europe 11,775 11,487 24,520 23,063 Asia-Pacific 4,726 4,308 9,359 7,584 Corporate 1,714 2,030 3,555 3,504 Consolidated depreciation and amortization $ 123,648 $ 107,280 $ 245,392 $ 216,314 (1) As more fully described in "Note 1 —Basis of Presentation and Summary of Significant Accounting Policies" and "Note 3 —Revenues," we adopted a new revenue accounting standard on January 1, 2018 that results in revenue being presented net of certain fees that we pay to third parties. This change in presentation affected our reported revenues and operating expenses during the three and six months ended June 30, 2018 by the same amount and had no effect on operating income. (2) Revenues, operating income and depreciation and amortization reflect the effect of acquired businesses from the respective dates of acquisition. For further discussion, see "Note 2 — Acquisitions." (3) During the three and six months ended June 30, 2018 , operating loss for Corporate included acquisition and integration expenses of $8.1 million and $26.4 million , respectively. During the three and six months ended June 30, 2017 , operating loss for Corporate included acquisition and integration expenses of $21.9 million and $48.0 million , respectively. |
BASIS OF PRESENTATION AND SUM33
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($)Country | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segmentCountry | Jun. 30, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | ||||||
Number of countries in which entity operates | Country | 30 | 30 | ||||
Number of reportable segments | segment | 3 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | $ 1,819,213 | $ 1,819,213 | $ 1,597,897 | |||
Other noncurrent assets | 345,839 | 345,839 | 207,297 | |||
Deferred income tax liabilities | 443,874 | 443,874 | $ 436,879 | |||
Revenues | 833,164 | $ 962,240 | 1,628,141 | $ 1,882,002 | ||
Cost of service | 264,544 | 469,149 | 516,930 | 925,085 | ||
Selling, general and administrative expenses | 377,883 | $ 361,239 | 764,304 | $ 720,095 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | $ 51,000 | |||||
Other noncurrent assets | 64,600 | |||||
Deferred income tax liabilities | $ 15,600 | |||||
Revenues | 281,900 | 534,300 | ||||
Cost of service | 265,000 | 500,900 | ||||
Selling, general and administrative expenses | $ 16,900 | $ 33,300 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - ACTIVE Network - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 01, 2017 | Jun. 30, 2018 |
Business Acquisition [Line Items] | ||||
Total purchase consideration | $ 1,171,576 | $ 1,171,576 | $ 1,171,576 | |
Number of shares issued as consideration (shares) | 6,357,509 | |||
Goodwill acquired | $ 784,526 | $ 784,668 | $ 784,500 | |
Expected tax deductible amount of goodwill (as a percent) | 80.00% | |||
Amortization period of intangible assets | 13 years |
ACQUISITIONS - Components of Co
ACQUISITIONS - Components of Consideration Transferred (Details) - ACTIVE Network - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 01, 2017 |
Business Acquisition [Line Items] | |||
Cash consideration paid to ACTIVE Network stockholders | $ 599,497 | ||
Fair value of Global Payments common stock issued to ACTIVE Network stockholders | 572,079 | ||
Total purchase consideration | $ 1,171,576 | $ 1,171,576 | $ 1,171,576 |
ACQUISITIONS - Acquisition Date
ACQUISITIONS - Acquisition Date Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 01, 2017 | Jun. 30, 2018 |
Measurement-Period Adjustments | ||||
Goodwill | $ (142) | |||
ACTIVE Network | ||||
Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | ||||
Cash and cash equivalents | $ 42,913 | $ 42,913 | 42,913 | |
Property and equipment | 21,852 | 21,985 | 21,852 | |
Identified intangible assets | 410,545 | 410,545 | $ 410,545 | 410,545 |
Other assets | 87,030 | 87,240 | 87,030 | |
Deferred income taxes | (27,640) | (31,643) | (27,640) | |
Other liabilities | (147,650) | (144,132) | (147,650) | |
Total identifiable net assets | 387,050 | 386,908 | 387,050 | |
Goodwill | 784,526 | 784,668 | 784,500 | |
Total purchase consideration | $ 1,171,576 | $ 1,171,576 | $ 1,171,576 | |
Measurement-Period Adjustments | ||||
Cash and cash equivalents | 0 | |||
Property and equipment | (133) | |||
Identified intangible assets | 0 | |||
Other assets | (210) | |||
Deferred income taxes | 4,003 | |||
Other liabilities | (3,518) | |||
Total identifiable net assets | 142 | |||
Goodwill | (142) | |||
Total purchase consideration | $ 0 |
ACQUISITIONS - Schedule of Fair
ACQUISITIONS - Schedule of Fair Value of Intangible Assets (Details) - ACTIVE Network - USD ($) $ in Thousands | Sep. 01, 2017 | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Estimated Fair Values | $ 410,545 | $ 410,545 | $ 410,545 |
Weighted-Average Estimated Amortization Periods | 13 years | ||
Customer-related intangible assets | |||
Business Acquisition [Line Items] | |||
Estimated Fair Values | $ 189,000 | ||
Weighted-Average Estimated Amortization Periods | 17 years | ||
Acquired technology | |||
Business Acquisition [Line Items] | |||
Estimated Fair Values | $ 153,300 | ||
Weighted-Average Estimated Amortization Periods | 9 years | ||
Trademarks and trade names | |||
Business Acquisition [Line Items] | |||
Estimated Fair Values | $ 59,400 | ||
Weighted-Average Estimated Amortization Periods | 15 years | ||
Covenants-not-to-compete | |||
Business Acquisition [Line Items] | |||
Estimated Fair Values | $ 8,845 | ||
Weighted-Average Estimated Amortization Periods | 3 years |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Current contract liabilities | $ 116.9 | $ 116.9 | $ 99.4 | $ 100.6 |
Noncurrent contract liabilities | 8.3 | 8.3 | $ 8.1 | $ 6 |
Deferred revenue recognized | $ 37 | $ 69.9 | ||
Capitalized Contract Cost [Line Items] | ||||
Amortization period of capitalized contract costs | 7 years | 7 years | ||
Amortization of capitalized contract costs | $ 13.6 | $ 23.8 | ||
Obtain Contract | ||||
Capitalized Contract Cost [Line Items] | ||||
Capitalized contract costs | 172.2 | 172.2 | ||
Fulfill Contract | ||||
Capitalized Contract Cost [Line Items] | ||||
Capitalized contract costs | $ 8.3 | $ 8.3 |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 833,164 | $ 962,240 | $ 1,628,141 | $ 1,882,002 |
Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 752,643 | 1,463,368 | ||
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 80,521 | 164,773 | ||
Relationship-led | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 380,192 | 734,068 | ||
Technology-enabled | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 372,451 | 729,300 | ||
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 621,801 | 1,215,830 | ||
North America | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 541,280 | 1,051,057 | ||
North America | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 80,521 | 164,773 | ||
North America | Relationship-led | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 244,861 | 471,281 | ||
North America | Technology-enabled | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 296,419 | 579,776 | ||
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 155,631 | 298,908 | ||
Europe | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 155,631 | 298,908 | ||
Europe | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Europe | Relationship-led | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 102,960 | 195,174 | ||
Europe | Technology-enabled | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 52,671 | 103,734 | ||
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 55,732 | 113,403 | ||
Asia-Pacific | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 55,732 | 113,403 | ||
Asia-Pacific | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Asia-Pacific | Relationship-led | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32,371 | 67,613 | ||
Asia-Pacific | Technology-enabled | Direct distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 23,361 | $ 45,790 |
SETTLEMENT PROCESSING ASSETS 40
SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Settlement processing assets | ||
Total settlement processing assets | $ 2,033,938 | $ 2,459,292 |
Settlement processing obligations | ||
Total settlement processing obligations | (1,714,375) | (2,040,509) |
Merchant reserves | ||
Settlement processing assets | ||
Merchant reserves | (15,436) | (13,268) |
Settlement processing obligations | ||
Settlement liabilities, reserves | (141,895) | (133,907) |
Reserve for operating losses and sales allowances | ||
Settlement processing obligations | ||
Settlement liabilities, reserves | (4,101) | (4,042) |
Interchange reimbursement | ||
Settlement processing assets | ||
Settlement processing assets: | 282,096 | 304,964 |
Settlement processing obligations | ||
Settlement processing obligations: | 92,740 | 72,053 |
(Liability to) receivable from members | ||
Settlement processing assets | ||
Settlement processing assets: | (11,607) | 104,339 |
Receivable from networks | ||
Settlement processing assets | ||
Settlement processing assets: | 1,768,906 | 2,055,390 |
Liability to members | ||
Settlement processing obligations | ||
Settlement processing obligations: | (22,152) | (20,369) |
Liability to merchants | ||
Settlement processing obligations | ||
Settlement processing obligations: | (1,651,574) | (1,961,107) |
Exception items | ||
Settlement processing assets | ||
Settlement processing assets: | 9,979 | 7,867 |
Settlement processing obligations | ||
Settlement processing obligations: | $ 12,607 | $ 6,863 |
GOODWILL AND OTHER INTANGIBLE41
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Intangible Assets (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated impairment of goodwill | $ 0 | $ 0 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 5,671,875,000 | 5,703,992,000 |
Other intangible assets: | ||
Other intangible assets | 3,166,603,000 | 3,220,567,000 |
Less accumulated amortization: | ||
Less accumulated amortization | 1,169,236,000 | 1,038,860,000 |
Other intangible assets, net | 1,997,367,000 | 2,181,707,000 |
Customer-related intangible assets | ||
Other intangible assets: | ||
Other intangible assets | 2,064,828,000 | 2,078,891,000 |
Less accumulated amortization: | ||
Less accumulated amortization | 768,665,000 | 685,869,000 |
Acquired technologies | ||
Other intangible assets: | ||
Other intangible assets | 720,330,000 | 722,466,000 |
Less accumulated amortization: | ||
Less accumulated amortization | 273,172,000 | 210,063,000 |
Trademarks and trade names | ||
Other intangible assets: | ||
Other intangible assets | 246,858,000 | 247,688,000 |
Less accumulated amortization: | ||
Less accumulated amortization | 66,660,000 | 50,849,000 |
Contract-based intangible assets | ||
Other intangible assets: | ||
Other intangible assets | 134,587,000 | 171,522,000 |
Less accumulated amortization: | ||
Less accumulated amortization | $ 60,739,000 | $ 92,079,000 |
GOODWILL AND OTHER INTANGIBLE42
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill Roll-Forward (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 5,703,992 |
Effect of foreign currency translation | (31,975) |
Measurement-period adjustments | (142) |
Balance at end of period | 5,671,875 |
North America | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 4,896,491 |
Effect of foreign currency translation | (3,355) |
Measurement-period adjustments | (142) |
Balance at end of period | 4,892,994 |
Europe | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 513,138 |
Effect of foreign currency translation | (15,107) |
Measurement-period adjustments | 0 |
Balance at end of period | 498,031 |
Asia-Pacific | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 294,363 |
Effect of foreign currency translation | (13,513) |
Measurement-period adjustments | 0 |
Balance at end of period | $ 280,850 |
LONG-TERM DEBT AND LINES OF C43
LONG-TERM DEBT AND LINES OF CREDIT - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 26 Months Ended | 50 Months Ended | 62 Months Ended | 68 Months Ended | 71 Months Ended | ||||||
Jun. 30, 2018USD ($)Rate | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)$ / sharesRate | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2020 | Sep. 30, 2018 | Mar. 20, 2018USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 83,239,000 | $ 83,239,000 | $ 108,979,000 | |||||||||||
Decrease in interest rate (as a percent) | 0.25% | |||||||||||||
Net repayments of settlement lines of credit | $ 88,325,000 | $ 88,490,000 | ||||||||||||
Other restrictions on payments of dividends (USD per share) | $ / shares | $ 0.01 | |||||||||||||
Interest expense | $ 48,100,000 | $ 47,400,000 | $ 93,500,000 | $ 88,500,000 | ||||||||||
Secured Debt | Term Loan B-3 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 1,140,000,000 | |||||||||||||
Credit facility interest rate (as a percent) | Rate | 3.84% | 3.84% | ||||||||||||
Secured Debt | Term Loan A | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 1,500,000,000 | $ 1,500,000,000 | ||||||||||||
Credit facility interest rate (as a percent) | Rate | 3.59% | 3.59% | ||||||||||||
Secured Debt | Term Loan A-2 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 1,370,000,000 | $ 1,370,000,000 | ||||||||||||
Credit facility interest rate (as a percent) | Rate | 3.48% | 3.48% | ||||||||||||
Secured Debt | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 1,500,000,000 | $ 1,500,000,000 | ||||||||||||
Maximum borrowing capacity | 5,500,000,000 | 5,500,000,000 | ||||||||||||
Line of credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | 667,900,000 | 667,900,000 | ||||||||||||
Remaining borrowing capacity | 764,200,000 | 764,200,000 | ||||||||||||
Net repayments of settlement lines of credit | 48,200,000 | 59,300,000 | ||||||||||||
Amount outstanding under lines of credit | $ 547,300,000 | $ 547,300,000 | $ 635,200,000 | |||||||||||
Weighted-average interest rate of short-term debt (as a percent) | 2.45% | 2.45% | 1.97% | |||||||||||
Average outstanding balance | $ 396,400,000 | |||||||||||||
Interest rate swap | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Accumulated other comprehensive income (loss) related to interest rate | $ 9,700,000 | $ 9,700,000 | ||||||||||||
Revolving Credit Facility | Fourth Amendment | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Minimum interest coverage ratio | 3.25 | 3.25 | ||||||||||||
Revolving Credit Facility | Secured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Effective interest rate (as a percent) | Rate | 3.48% | 3.48% | ||||||||||||
Revolving Credit Facility | Forecast | Term Loan B-3 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Rate of quarterly installment payments (as a percent) | 0.25% | |||||||||||||
Revolving Credit Facility | Forecast | Term Loan A | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Rate of quarterly installment payments (as a percent) | 0.625% | 1.25% | 1.875% | 2.50% | ||||||||||
Revolving Credit Facility | Forecast | Fourth Amendment | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum leverage ratio | 4.75 | 4.50 | 5 | |||||||||||
Letter of Credit | Line of credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | ||||||||||||
Standby letters of credit | Line of credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Remaining borrowing capacity | $ 1,125,400,000 | $ 1,125,400,000 | $ 473,300,000 | |||||||||||
Minimum | Revolving Credit Facility | Fourth Amendment | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Commitment fee rate (as a percent) | 0.20% | |||||||||||||
Maximum | Revolving Credit Facility | Fourth Amendment | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Commitment fee rate (as a percent) | 0.30% |
LONG-TERM DEBT AND LINES OF C44
LONG-TERM DEBT AND LINES OF CREDIT - Schedule of Outstanding Debt (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 4,329,859,000 | $ 4,659,716,000 |
Less current portion of Credit Facility (face amounts of $83,239 and $108,979 at June 30, 2018 and December 31, 2017, respectively, less unamortized debt issuance costs of $8,522 and $8,671 at June 30, 2018 and December 31, 2017, respectively) | 74,717,000 | 100,308,000 |
Long-term debt | 4,255,142,000 | 4,559,408,000 |
Face amount | 83,239,000 | 108,979,000 |
Unamortized debt issuance expense | 8,522,000 | 8,671,000 |
Term loan | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 3,967,859,000 | 3,894,716,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 362,000,000 | 765,000,000 |
Five Year Unsecured Term Loan Due February 2019 | Term loan | ||
Debt Instrument [Line Items] | ||
Face amount | 4,005,196,000 | 3,932,677,000 |
Unamortized debt issuance expense | $ 37,337,000 | $ 37,961,000 |
LONG-TERM DEBT AND LINES OF C45
LONG-TERM DEBT AND LINES OF CREDIT - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 41,620 |
2,019 | 119,109 |
2,020 | 154,979 |
2,021 | 190,848 |
2,022 | 262,587 |
2,023 | 3,598,053 |
Total | $ 4,367,196 |
LONG-TERM DEBT AND LINES OF C46
LONG-TERM DEBT AND LINES OF CREDIT - Schedule of Derivative Instruments (Details) - Interest rate swap - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Prepaid expenses and other current assets | ||
Debt Instrument [Line Items] | ||
Weighted-average fixed rate of interest | 1.52% | |
Interest rate swaps | $ 2,544,000 | $ 0 |
Notional amount | $ 500,000,000 | 0 |
Other noncurrent assets | ||
Debt Instrument [Line Items] | ||
Weighted-average fixed rate of interest | 1.63% | |
Interest rate swaps | $ 16,003,000 | 9,202,000 |
Notional amount | $ 800,000,000 | $ 1,300,000,000 |
LONG-TERM DEBT AND LINES OF C47
LONG-TERM DEBT AND LINES OF CREDIT - Schedule of Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivatives in cash flow hedging relationships: | ||||
Amount of unrealized gains (losses) recognized in other comprehensive income (loss) | $ 2,932 | $ (3,382) | $ 10,508 | $ (2,555) |
Amount of unrealized (gains) losses reclassified out of other comprehensive income (loss) to interest expense | $ (1,104) | $ 1,897 | $ (1,167) | $ 3,493 |
INCOME TAX - Narrative (Details
INCOME TAX - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (as a percent) | 19.10% | 15.10% | 19.60% | 16.70% |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 27, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Class of Stock [Line Items] | |||||
Repurchase and retirement of common stock | $ 180,897 | $ 5,820 | |||
Dividends declared (USD per share) | $ 0.01 | ||||
Other than accelerated share repurchase program | |||||
Class of Stock [Line Items] | |||||
Remaining authorized repurchase amount (up to) | $ 419,100 | $ 419,100 | |||
Repurchase of common stock (shares) | 1,603,248 | 64,716 | 1,612,174 | 64,716 | |
Repurchase and retirement of common stock | $ 179,900 | $ 5,800 | $ 180,900 | $ 5,800 | |
Repurchase of common stock (USD per share) | $ 112.20 | $ 89.70 | $ 112.19 | $ 89.70 | |
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Dividends declared (USD per share) | $ 0.01 |
SHARE-BASED AWARDS AND OPTION50
SHARE-BASED AWARDS AND OPTIONS - Share-Based Compensation Expense and Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based compensation expense | $ 15,205 | $ 12,337 | $ 30,104 | $ 21,153 |
Income tax benefit | $ 3,377 | $ 4,199 | $ 6,662 | $ 7,265 |
SHARE-BASED AWARDS AND OPTION51
SHARE-BASED AWARDS AND OPTIONS - Share-Based Awards (Details) - Share-Based Awards shares in Thousands | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (shares) | shares | 1,226 |
Granted (shares) | shares | 485 |
Vested (shares) | shares | (203) |
Forfeited (shares) | shares | (26) |
Ending balance (shares) | shares | 1,482 |
Weighted-Average Grant-Date Fair Value | |
Beginning balance (USD per share) | $ / shares | $ 78.29 |
Granted (USD per share) | $ / shares | 114.78 |
Vested (USD per share) | $ / shares | 75.77 |
Forfeited (USD per share) | $ / shares | 85.67 |
Ending balance (USD per share) | $ / shares | $ 90.43 |
SHARE-BASED AWARDS AND OPTION52
SHARE-BASED AWARDS AND OPTIONS - Share-Based Awards Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 15,205 | $ 12,337 | $ 30,104 | $ 21,153 |
Share-Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of share-based awards vested | 22,800 | 2,200 | ||
Share-based compensation expense | 13,600 | $ 11,200 | 27,400 | $ 19,200 |
Compensation not yet recognized | $ 81,000 | $ 81,000 | ||
Weighted-average period of unrecognized compensation cost | 2 years 29 days |
SHARE-BASED AWARDS AND OPTION53
SHARE-BASED AWARDS AND OPTIONS - Stock Option Activity (Details) - Employee stock option - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Options | ||
Outstanding at beginning of period (shares) | 723 | |
Granted (shares) | 103 | |
Forfeited (shares) | (4) | |
Exercised (shares) | (49) | |
Outstanding at end of period (shares) | 773 | 723 |
Options vested and exercisable (shares) | 491 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period (USD per share) | $ 47.79 | |
Granted (USD per share) | 114.70 | |
Forfeited (USD per share) | 19.64 | |
Exercised (USD per share) | 21.85 | |
Outstanding at end of period (USD per share) | 58.45 | $ 47.79 |
Options vested and exercisable (USD per share) | $ 41.79 | |
Weighted-Average Remaining Contractual Term | ||
Outstanding | 6 years 9 months | 6 years 5 months |
Options vested and exercisable | 5 years 8 months | |
Aggregate Intrinsic Value | ||
Outstanding | $ 41.3 | $ 37.9 |
Options vested and exercisable | $ 34.2 |
SHARE-BASED AWARDS AND OPTION54
SHARE-BASED AWARDS AND OPTIONS - Stock Options Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 15,205 | $ 12,337 | $ 30,104 | $ 21,153 |
Employee stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 900 | $ 700 | 1,500 | 1,300 |
Aggregate intrinsic value of stock options exercised | 4,600 | $ 7,500 | ||
Total unrecognized compensation cost | $ 5,600 | $ 5,600 | ||
Weighted-average period of unrecognized compensation cost | 2 years 70 days | |||
Weighted average grant date fair value for each option granted (USD per share) | $ 35.09 | $ 23.68 | $ 35.09 | $ 23.68 |
SHARE-BASED AWARDS AND OPTION55
SHARE-BASED AWARDS AND OPTIONS - Valuation Assumptions (Details) - Employee stock option | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate (as a percent) | 2.60% | 1.99% |
Expected volatility (as a percent) | 29.00% | 30.00% |
Dividend yield (as a percent) | 0.04% | 0.06% |
Expected term (years) | 5 years | 5 years |
EARNINGS PER SHARE - Summary (D
EARNINGS PER SHARE - Summary (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average number of shares outstanding (shares) | 159,003 | 152,525 | 159,161 | 152,415 |
Plus: Dilutive effect of stock options and other share-based awards (shares) | 674 | 1,030 | 679 | 990 |
Diluted weighted-average number of shares outstanding (shares) | 159,677 | 153,555 | 159,840 | 153,405 |
ACCUMULATED OTHER COMPREHENSI57
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | ||||
Foreign currency translation adjustment, other comprehensive (income) loss | $ 11.2 | $ (12) | $ (0.1) | $ (12.7) |
ACCUMULATED OTHER COMPREHENSI58
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 3,794,527 | |||
Other comprehensive income (loss), net of tax | $ (66,668) | $ 44,347 | (58,642) | $ 79,258 |
Cumulative effect of adoption of new accounting standard | 49,127 | 49,127 | ||
Balance at end of period | 3,830,367 | 3,830,367 | ||
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (176,961) | (287,806) | (183,144) | (322,717) |
Cumulative effect of adoption of new accounting standard | (1,843) | (1,843) | ||
Balance at end of period | (243,629) | (243,459) | (243,629) | (243,459) |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (185,269) | (284,835) | (185,856) | (318,450) |
Other comprehensive income (loss), net of tax | (68,103) | 45,166 | (65,673) | 78,781 |
Cumulative effect of adoption of new accounting standard | (1,843) | (1,843) | ||
Balance at end of period | (253,372) | (239,669) | (253,372) | (239,669) |
Unrealized Gains (Losses) on Hedging Activities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 12,647 | 873 | 6,999 | (640) |
Other comprehensive income (loss), net of tax | 1,383 | (822) | 7,031 | 691 |
Cumulative effect of adoption of new accounting standard | 0 | 0 | ||
Balance at end of period | 14,030 | 51 | 14,030 | 51 |
Other | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (4,339) | (3,844) | (4,287) | (3,627) |
Other comprehensive income (loss), net of tax | 52 | 3 | 0 | (214) |
Cumulative effect of adoption of new accounting standard | 0 | 0 | ||
Balance at end of period | $ (4,287) | $ (3,841) | $ (4,287) | $ (3,841) |
SEGMENT INFORMATION - Summary (
SEGMENT INFORMATION - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 833,164 | $ 962,240 | $ 1,628,141 | $ 1,882,002 |
Operating income (loss) for segments | 190,737 | 131,852 | 346,907 | 236,822 |
Depreciation and amortization | 123,648 | 107,280 | 245,392 | 216,314 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) for segments | (58,706) | (63,532) | (122,262) | (126,906) |
Depreciation and amortization | 1,714 | 2,030 | 3,555 | 3,504 |
Acquisition-related costs | 8,100 | 21,900 | 26,400 | 48,000 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 621,801 | 1,215,830 | ||
North America | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 621,801 | 710,965 | 1,215,830 | 1,398,009 |
Operating income (loss) for segments | 147,184 | 112,176 | 272,588 | 206,259 |
Depreciation and amortization | 105,433 | 89,455 | 207,958 | 182,163 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 155,631 | 298,908 | ||
Europe | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 155,631 | 186,506 | 298,908 | 352,054 |
Operating income (loss) for segments | 82,682 | 65,673 | 153,230 | 120,180 |
Depreciation and amortization | 11,775 | 11,487 | 24,520 | 23,063 |
Asia-Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 55,732 | 113,403 | ||
Asia-Pacific | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 55,732 | 64,769 | 113,403 | 131,939 |
Operating income (loss) for segments | 19,577 | 17,535 | 43,351 | 37,289 |
Depreciation and amortization | $ 4,726 | $ 4,308 | $ 9,359 | $ 7,584 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - Heartland Payment Systems $ in Millions | 1 Months Ended |
May 31, 2017USD ($)option | |
Loss Contingencies [Line Items] | |
Total purchase consideration | $ | $ 37.5 |
Term of operating lease contract | 20 years |
Number of renewal options | option | 4 |
Renewal term of operating lease contract | 5 years |
SUBSEQUENT EVENT - Narrative (D
SUBSEQUENT EVENT - Narrative (Details) $ in Millions | Aug. 02, 2018USD ($) |
AdvancedMD | Subsequent Event | |
Subsequent Event [Line Items] | |
Cash consideration to acquire business | $ 700 |