Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-16111 | |
Entity Registrant Name | GLOBAL PAYMENTS INC | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-2567903 | |
Entity Address, Address Line One | 3550 Lenox Road | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 770 | |
Local Phone Number | 829-8000 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | GPN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 293,748,093 | |
Entity Central Index Key | 0001123360 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 2,137,437 | $ 1,671,952 | $ 4,127,444 | $ 3,575,550 |
Operating expenses: | ||||
Cost of service | 936,310 | 893,740 | 1,861,556 | 1,827,611 |
Selling, general and administrative | 838,569 | 670,638 | 1,628,071 | 1,396,386 |
Total operating expenses | 1,774,879 | 1,564,378 | 3,489,627 | 3,223,997 |
Operating income | 362,558 | 107,574 | 637,817 | 351,553 |
Other income (expense): | ||||
Interest and other income | 5,455 | 2,787 | 9,689 | 5,293 |
Interest and other expense | (80,556) | (82,855) | (163,697) | (175,499) |
Total nonoperating income (expense) | (75,101) | (80,068) | (154,008) | (170,206) |
Income before income taxes and equity in income of equity method investments | 287,457 | 27,506 | 483,809 | 181,347 |
Income tax expense | 60,808 | 836 | 81,483 | 16,338 |
Income before equity in income of equity method investments | 226,649 | 26,670 | 402,326 | 165,009 |
Equity in income of equity method investments, net of tax | 40,164 | 12,774 | 62,897 | 25,041 |
Net income | 266,813 | 39,444 | 465,223 | 190,050 |
Net income attributable to noncontrolling interests, net of tax | (3,223) | (2,113) | (4,952) | (9,147) |
Net income attributable to Global Payments | $ 263,590 | $ 37,331 | $ 460,271 | $ 180,903 |
Earnings per share attributable to Global Payments: | ||||
Basic earnings per share (USD per share) | $ 0.89 | $ 0.12 | $ 1.56 | $ 0.60 |
Diluted earnings per share (USD per share) | $ 0.89 | $ 0.12 | $ 1.55 | $ 0.60 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 266,813 | $ 39,444 | $ 465,223 | $ 190,050 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 32,671 | 82,458 | (895) | (121,653) |
Income tax benefit related to foreign currency translation adjustments | 4,242 | 154 | 4,991 | 1,160 |
Net unrealized losses on hedging activities | (410) | (5,630) | 584 | (53,526) |
Reclassification of net unrealized losses on hedging activities to interest expense | 9,662 | 9,982 | 20,500 | 14,653 |
Income tax (expense) benefit related to hedging activities | (2,225) | (1,057) | (5,089) | 9,289 |
Other, net of tax | (1,549) | 122 | 6,226 | 243 |
Other comprehensive income (loss) | 42,391 | 86,029 | 26,317 | (149,834) |
Comprehensive income | 309,204 | 125,473 | 491,540 | 40,216 |
Comprehensive income attributable to noncontrolling interests | (5,948) | (7,508) | (1,703) | (7,888) |
Comprehensive income attributable to Global Payments | $ 303,256 | $ 117,965 | $ 489,837 | $ 32,328 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,799,549 | $ 1,945,868 |
Accounts receivable, net | 878,431 | 794,172 |
Settlement processing assets | 1,548,743 | 1,230,853 |
Prepaid expenses and other current assets | 673,154 | 621,467 |
Total current assets | 4,899,877 | 4,592,360 |
Goodwill | 24,422,012 | 23,871,451 |
Other intangible assets, net | 11,815,103 | 12,015,883 |
Property and equipment, net | 1,642,283 | 1,578,532 |
Deferred income taxes | 8,094 | 7,627 |
Other noncurrent assets | 2,362,304 | 2,135,692 |
Total assets | 45,149,673 | 44,201,545 |
Current liabilities: | ||
Settlement lines of credit | 487,538 | 358,698 |
Current portion of long-term debt | 52,611 | 827,357 |
Accounts payable and accrued liabilities | 2,184,201 | 2,061,384 |
Settlement processing obligations | 1,655,278 | 1,301,652 |
Total current liabilities | 4,379,628 | 4,549,091 |
Long-term debt | 10,216,979 | 8,466,407 |
Deferred income taxes | 2,873,676 | 2,948,390 |
Other noncurrent liabilities | 829,250 | 750,613 |
Total liabilities | 18,299,533 | 16,714,501 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, no par value; 5,000,000 shares authorized and none issued | 0 | 0 |
Common stock, no par value; 400,000,000 shares authorized at June 30, 2021 and December 31, 2020; 293,702,910 issued and outstanding at June 30, 2021 and 298,332,459 issued and outstanding at December 31, 2020 | 0 | 0 |
Paid-in capital | 24,201,763 | 24,963,769 |
Retained earnings | 2,664,707 | 2,570,874 |
Accumulated other comprehensive loss | (172,707) | (202,273) |
Total Global Payments shareholders’ equity | 26,693,763 | 27,332,370 |
Noncontrolling interests | 156,377 | 154,674 |
Total equity | 26,850,140 | 27,487,044 |
Total liabilities and equity | $ 45,149,673 | $ 44,201,545 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0 | $ 0 |
Preferred stock authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0 | $ 0 |
Common stock authorized (shares) | 400,000,000 | 400,000,000 |
Common stock issued (shares) | 293,702,910 | 298,332,459 |
Common stock outstanding (shares) | 293,702,910 | 298,332,459 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 465,223 | $ 190,050 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 193,574 | 172,229 |
Amortization of acquired intangibles | 654,042 | 628,264 |
Amortization of capitalized contract costs | 43,975 | 38,070 |
Share-based compensation expense | 80,490 | 62,805 |
Provision for operating losses and credit losses | 50,802 | 66,921 |
Noncash lease expense | 54,533 | 47,770 |
Deferred income taxes | (91,177) | (96,458) |
Equity in income of equity investments, net of tax | (62,897) | (25,041) |
Other, net | 13,965 | 10,823 |
Changes in operating assets and liabilities, net of the effects of business combinations: | ||
Accounts receivable | (91,580) | 56,186 |
Settlement processing assets and obligations, net | 25,312 | 136,453 |
Prepaid expenses and other assets | (151,353) | (97,653) |
Accounts payable and other liabilities | (75,268) | (230,130) |
Net cash provided by operating activities | 1,109,641 | 960,289 |
Cash flows from investing activities: | ||
Business combinations and other acquisitions, net of cash acquired | (943,108) | (74,095) |
Capital expenditures | (219,579) | (208,384) |
Other, net | 742 | 12,188 |
Net cash used in investing activities | (1,161,945) | (270,291) |
Cash flows from financing activities: | ||
Net borrowings from (repayments of) settlement lines of credit | 134,245 | (25,546) |
Proceeds from long-term debt | 2,820,988 | 1,867,008 |
Repayments of long-term debt | (1,830,258) | (1,809,199) |
Payments of debt issuance costs | (8,569) | (8,006) |
Repurchases of common stock | (1,072,934) | (421,162) |
Proceeds from stock issued under share-based compensation plans | 29,304 | 42,632 |
Common stock repurchased - share-based compensation plans | (49,664) | (39,226) |
Dividends paid | (114,875) | (116,591) |
Net cash used in financing activities | (91,763) | (510,090) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5,980) | (32,556) |
(Decrease) increase in cash, cash equivalents and restricted cash | (150,047) | 147,352 |
Cash, cash equivalents and restricted cash, beginning of the period | 2,089,771 | 1,678,273 |
Cash, cash equivalents and restricted cash, end of the period | $ 1,939,724 | $ 1,825,625 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Total Global Payments Shareholders’ Equity | Total Global Payments Shareholders’ EquityCumulative Effect, Period of Adoption, Adjustment | Number of Shares | Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance at beginning of period (shares) at Dec. 31, 2019 | 300,226,000 | |||||||||
Balance at beginning of period at Dec. 31, 2019 | $ 28,054,989 | $ (5,379) | $ 27,855,747 | $ (5,379) | $ 25,833,307 | $ 2,333,011 | $ (5,379) | $ (310,571) | $ 199,242 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 190,050 | 180,903 | 180,903 | 9,147 | ||||||
Other comprehensive income (loss) | (149,834) | (148,575) | (148,575) | (1,259) | ||||||
Stock issued under share-based compensation plans (shares) | 1,339,000 | |||||||||
Stock issued under share-based compensation plans | 42,632 | 42,632 | 42,632 | |||||||
Common stock repurchased - share-based compensation plans (shares) | (226,000) | |||||||||
Common stock repurchased - share-based compensation plans | (41,721) | (41,721) | (41,721) | |||||||
Share-based compensation expense | $ 62,805 | 62,805 | 62,805 | |||||||
Repurchases of common stock (shares) | (2,094,731) | (2,095,000) | ||||||||
Repurchases of common stock | $ (403,962) | (403,962) | (326,441) | (77,521) | ||||||
Cash dividends declared | (116,591) | (116,591) | (116,591) | |||||||
Balance at end of period (shares) at Jun. 30, 2020 | 299,244,000 | |||||||||
Balance at end of period at Jun. 30, 2020 | 27,632,989 | 27,425,859 | 25,570,582 | 2,314,423 | (459,146) | 207,130 | ||||
Balance at beginning of period (shares) at Mar. 31, 2020 | 299,010,000 | |||||||||
Balance at beginning of period at Mar. 31, 2020 | 27,520,433 | 27,320,811 | 25,525,184 | 2,335,407 | (539,780) | 199,622 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 39,444 | 37,331 | 37,331 | 2,113 | ||||||
Other comprehensive income (loss) | 86,029 | 80,634 | 80,634 | 5,395 | ||||||
Stock issued under share-based compensation plans (shares) | 257,000 | |||||||||
Stock issued under share-based compensation plans | 14,349 | 14,349 | 14,349 | |||||||
Common stock repurchased - share-based compensation plans (shares) | (23,000) | |||||||||
Common stock repurchased - share-based compensation plans | (3,934) | (3,934) | (3,934) | |||||||
Share-based compensation expense | $ 34,983 | 34,983 | 34,983 | |||||||
Repurchases of common stock (shares) | 0 | |||||||||
Cash dividends declared | $ (58,315) | (58,315) | (58,315) | |||||||
Balance at end of period (shares) at Jun. 30, 2020 | 299,244,000 | |||||||||
Balance at end of period at Jun. 30, 2020 | 27,632,989 | 27,425,859 | 25,570,582 | 2,314,423 | (459,146) | 207,130 | ||||
Balance at beginning of period (shares) at Dec. 31, 2020 | 298,332,000 | |||||||||
Balance at beginning of period at Dec. 31, 2020 | 27,487,044 | 27,332,370 | 24,963,769 | 2,570,874 | (202,273) | 154,674 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 465,223 | 460,271 | 460,271 | 4,952 | ||||||
Other comprehensive income (loss) | 26,317 | 29,566 | 29,566 | (3,249) | ||||||
Stock issued under share-based compensation plans (shares) | 1,081,000 | |||||||||
Stock issued under share-based compensation plans | 29,304 | 29,304 | 29,304 | |||||||
Common stock repurchased - share-based compensation plans (shares) | (253,000) | |||||||||
Common stock repurchased - share-based compensation plans | (50,429) | (50,429) | (50,429) | |||||||
Share-based compensation expense | $ 80,490 | 80,490 | 80,490 | |||||||
Repurchases of common stock (shares) | (5,456,949) | (5,457,000) | ||||||||
Repurchases of common stock | $ (1,072,934) | (1,072,934) | (821,371) | (251,563) | ||||||
Cash dividends declared | (114,875) | (114,875) | (114,875) | |||||||
Balance at end of period (shares) at Jun. 30, 2021 | 293,703,000 | |||||||||
Balance at end of period at Jun. 30, 2021 | 26,850,140 | 26,693,763 | 24,201,763 | 2,664,707 | (172,707) | 156,377 | ||||
Balance at beginning of period (shares) at Mar. 31, 2021 | 295,158,000 | |||||||||
Balance at beginning of period at Mar. 31, 2021 | 26,842,191 | 26,691,762 | 24,403,323 | 2,500,812 | (212,373) | 150,429 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 266,813 | 263,590 | 263,590 | 3,223 | ||||||
Other comprehensive income (loss) | 42,391 | 39,666 | 39,666 | 2,725 | ||||||
Stock issued under share-based compensation plans (shares) | 78,000 | |||||||||
Stock issued under share-based compensation plans | 11,599 | 11,599 | 11,599 | |||||||
Common stock repurchased - share-based compensation plans (shares) | (31,000) | |||||||||
Common stock repurchased - share-based compensation plans | (8,900) | (8,900) | (8,900) | |||||||
Share-based compensation expense | $ 43,325 | 43,325 | 43,325 | |||||||
Repurchases of common stock (shares) | (1,501,549) | (1,502,000) | ||||||||
Repurchases of common stock | $ (289,977) | (289,977) | (247,584) | (42,393) | ||||||
Cash dividends declared | (57,302) | (57,302) | (57,302) | |||||||
Balance at end of period (shares) at Jun. 30, 2021 | 293,703,000 | |||||||||
Balance at end of period at Jun. 30, 2021 | $ 26,850,140 | $ 26,693,763 | $ 24,201,763 | $ 2,664,707 | $ (172,707) | $ 156,377 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per share (USD per share) | $ 0.195 | $ 0.195 | $ 0.39 | $ 0.39 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
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 payments technology company delivering innovative software and services to our customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world. We operate in three reportable segments: Merchant Solutions, Issuer Solutions and Business and Consumer Solutions, which are described in "Note 12—Segment Information." Global Payments Inc. and its consolidated subsidiaries are referred to herein collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise. These unaudited consolidated financial statements include our accounts and those of our majority-owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated balance sheet as of December 31, 2020 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 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, 2020. COVID-19 Update - Since early 2020, the global economy has been, and continues to be, affected by COVID-19. The pandemic has caused and may continue to cause significant disruptions to businesses and markets worldwide as the virus spreads or has a resurgence in certain jurisdictions. Measures have been implemented by governments worldwide in an effort to contain the virus, including lockdowns, physical distancing, travel restrictions, limitations on public gatherings, work from home and restrictions on nonessential businesses. Certain government actions to gradually ease restrictions, provide economic stimulus and distribute vaccines have resulted in signs of economic recovery. However, the effects of the pandemic continue, and its ultimate severity and duration, and the implications on future global economic conditions, remain uncertain. 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. In particular, the future magnitude, duration and effects of the COVID-19 pandemic are difficult to predict at this time, and the ultimate effect could result in additional charges related to the recoverability of assets, including financial assets, long-lived assets and goodwill and other losses. These unaudited consolidated financial statements reflect the financial statement effects of COVID-19 based upon management’s estimates and assumptions utilizing the most currently available information. Recently adopted accounting pronouncements Accounting Standards Update ("ASU") 2019-12 — In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ," which is intended to enhance and simplify various aspects of the accounting for income taxes. The amendments in this update remove certain exceptions to the general principles in Accounting Standards Codification ("ASC") Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and amends existing guidance to improve consistency in application of the accounting for franchise taxes, enacted changes in tax laws or rates and transactions that result in a step-up in the tax basis of goodwill. The adoption of ASU 2019-12 on January 1, 2021 did not have a material effect on our consolidated financial statements. Recently issued pronouncements not yet adopted ASU 2020-04 — In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ," which provides optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference London Inter-bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients and which are retained through the end of the hedging relationship. The amendments in this update also include a general principle that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. If elected, the optional expedients for contract modifications must be applied consistently for all eligible contracts or eligible transactions within the relevant ASC Topic or Industry Subtopic that contains the guidance that otherwise would be required to be applied. The amendments in this update were effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. A portion of our indebtedness bears interest at a variable rate based on LIBOR. Furthermore, we have entered into hedging instruments to manage our exposure to fluctuations in the LIBOR benchmark interest rate. We are evaluating the effect of the discontinuance of LIBOR on our outstanding debt and hedging instruments and the related effect of ASU 2020-04 on our consolidated financial statements. |
ACQUISITION
ACQUISITION | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | ACQUISITION On June 10, 2021, we acquired Zego, a real estate technology company that provides a comprehensive resident experience management software and digital commerce solutions to property managers, primarily in the United States. Zego’s real estate software and payments solutions support property managers and residents throughout the real estate lifecycle. This acquisition aligns with our technology-enabled, software driven strategy and expands our business into a new vertical market. We paid cash consideration of approximately $933 million, which we funded with cash on hand and by drawing on our revolving credit facility. This transaction was accounted for as a business combination, which generally requires that we record the assets acquired and liabilities assumed at fair value as of the acquisition date. Due to the timing of the acquisition, the ac counting for this acquisition was not complete as of June 30, 2021. 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 (in thousands): Cash and cash equivalents $ 67,374 Accounts receivable 1,033 Identifiable intangible assets 410,443 Property and equipment 3,634 Other assets 9,141 Accounts payable and accrued liabilities (65,753) Deferred income tax liabilities (10,709) Other liabilities (8,268) Total identifiable net assets 406,895 Goodwill 525,929 Total purchase consideration $ 932,824 Goodwill of $525.9 million arising from the acquisition, included in the Merchant Solutions operating segment, is attributable to expected growth opportunities, potential synergies from combining our existing businesses and an assembled workforce. We expect that a portion of the goodwill will be deductible for income tax purposes. We are still evaluating information to separately identify and value the intangible assets acquired. We expect such assets to primarily include customer-related intangible assets and acquired technology as well as other identifiable intangible assets that are similar to those we have identified in previous acquisitions. We estimate the amortization periods for the more significant intangible assets to be in a range of 7 to 14 years. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following tables present a disaggregation of our revenues from contracts with customers by geography for each of our reportable segments for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 1,202,970 $ 379,121 $ 224,529 $ (16,768) $ 1,789,852 Europe 166,644 120,974 2,826 — 290,444 Asia Pacific 57,141 5,837 — (5,837) 57,141 $ 1,426,755 $ 505,932 $ 227,355 $ (22,605) $ 2,137,437 Three Months Ended June 30, 2020 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 862,927 $ 363,140 $ 216,722 $ (14,728) $ 1,428,061 Europe 102,460 105,263 — — 207,723 Asia Pacific 36,168 1,622 — (1,622) 36,168 $ 1,001,555 $ 470,025 $ 216,722 $ (16,350) $ 1,671,952 Six Months Ended June 30, 2021 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 2,283,440 $ 757,164 $ 465,163 $ (33,673) $ 3,472,094 Europe 299,578 238,386 5,778 — 543,742 Asia Pacific 111,609 10,633 — (10,634) 111,608 $ 2,694,627 $ 1,006,183 $ 470,941 $ (44,307) $ 4,127,444 Six Months Ended June 30, 2020 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 1,887,433 $ 756,893 $ 420,668 $ (32,461) $ 3,032,533 Europe 238,459 213,626 — — 452,085 Asia Pacific 90,932 3,268 — (3,268) 90,932 $ 2,216,824 $ 973,787 $ 420,668 $ (35,729) $ 3,575,550 The following table presents a disaggregation of our Merchant Solutions segment revenues by distribution channel for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (in thousands) Relationship-led $ 778,978 $ 566,414 $ 1,445,890 $ 1,242,935 Technology-enabled 647,777 435,141 1,248,737 973,889 $ 1,426,755 $ 1,001,555 $ 2,694,627 $ 2,216,824 ASC Topic 606, Revenues from Contracts with Customers ("ASC 606"), requires that we determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the three and six months ended June 30, 2021 and 2020, substantially all of our revenues were recognized over time. Supplemental balance sheet information related to contracts from customers as of June 30, 2021 and December 31, 2020 was as follows: Balance Sheet Location June 30, 2021 December 31, 2020 (in thousands) Assets: Capitalized costs to obtain customer contracts, net Other noncurrent assets $ 270,143 $ 253,780 Capitalized costs to fulfill customer contracts, net Other noncurrent assets 99,640 81,371 Liabilities: Contract liabilities, net (current) Accounts payable and accrued liabilities 216,331 217,938 Contract liabilities, net (noncurrent) Other noncurrent liabilities 49,610 52,944 Net contract assets were not material at June 30, 2021 or at December 31, 2020. Revenue recognized for the three months ended June 30, 2021 and 2020 from contract liability balances at the beginning of each period was $85.0 million and $86.7 million, respectively. Revenue recognized for the six months ended June 30, 2021 and 2020 from contract liability balances at the beginning of each period was $146.6 million and $159.9 million, respectively. ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations. The purpose of this disclosure is to provide additional information about the amounts and expected timing of revenue to be recognized from the remaining performance obligations in our existing contracts. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at June 30, 2021. However, as permitted, we have elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. Accordingly, the total amount of unsatisfied or partially unsatisfied performance obligations related to processing services is significantly higher than the amounts disclosed in the table below (in thousands): Year Ending December 31, 2021 $ 502,058 2022 845,561 2023 627,756 2024 450,703 2025 354,058 2026 280,326 2027 and thereafter 446,815 Total $ 3,507,277 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS As of June 30, 2021 and December 31, 2020, goodwill and other intangible assets consisted of the following: June 30, 2021 December 31, 2020 (in thousands) Goodwill $ 24,422,012 $ 23,871,451 Other intangible assets: Customer-related intangible assets $ 9,476,680 $ 9,275,093 Acquired technologies 2,975,966 2,795,991 Contract-based intangible assets 2,003,166 1,981,260 Trademarks and trade names 1,286,627 1,239,925 15,742,439 15,292,269 Less accumulated amortization: Customer-related intangible assets 2,257,116 1,914,214 Acquired technologies 1,169,394 960,281 Contract-based intangible assets 151,556 120,631 Trademarks and trade names 349,270 281,260 3,927,336 3,276,386 $ 11,815,103 $ 12,015,883 The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the six months ended June 30, 2021: Merchant Issuer Business and Total (in thousands) Balance at December 31, 2020 $ 13,548,690 $ 7,957,616 $ 2,365,145 $ 23,871,451 Goodwill acquired 563,232 — — 563,232 Effect of foreign currency translation (9,669) 2,907 (707) (7,469) Measurement period adjustments (5,202) — — (5,202) Balance at June 30, 2021 $ 14,097,051 $ 7,960,523 $ 2,364,438 $ 24,422,012 There were no accumulated impairment losses for goodwill as of June 30, 2021 or December 31, 2020. |
LONG-TERM DEBT AND LINES OF CRE
LONG-TERM DEBT AND LINES OF CREDIT | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND LINES OF CREDIT | LONG-TERM DEBT AND LINES OF CREDIT As of June 30, 2021 and December 31, 2020, long-term debt consisted of the following: June 30, 2021 December 31, 2020 (in thousands) 3.800% senior notes due April 1, 2021 $ — $ 752,199 3.750% senior notes due June 1, 2023 559,722 562,258 4.000% senior notes due June 1, 2023 562,634 565,930 2.650% senior notes due February 15, 2025 993,954 993,110 1.200% senior notes due March 1, 2026 1,091,057 — 4.800% senior notes due April 1, 2026 803,674 809,324 4.450% senior notes due June 1, 2028 480,391 482,588 3.200% senior notes due August 15, 2029 1,237,215 1,236,424 2.900% senior notes due May 15, 2030 989,611 989,025 4.150% senior notes due August 15, 2049 739,967 739,789 Unsecured term loan facility 1,987,785 1,985,776 Unsecured revolving credit facility 717,000 36,000 Finance lease liabilities 72,539 75,989 Other borrowings 34,041 65,352 Total long-term debt 10,269,590 9,293,764 Less current portion 52,611 827,357 Long-term debt, excluding current portion $ 10,216,979 $ 8,466,407 The carrying amounts of our senior notes and term loan in the table above are presented net of unamortized discount and unamortized debt issuance costs, as applicable. At June 30, 2021, unamortized discount on senior notes was $9.0 million, and unamortized debt issuance costs on senior notes and the unsecured term loan facility were $51.4 million. At December 31, 2020, unamortized discount on senior notes was $8.5 million, and unamortized debt issuance costs on our senior notes and the unsecured term loan facility were $47.4 million. The portion of unamortized debt issuance costs related to revolving credit facilities is included in other noncurrent assets. At June 30, 2021, unamortized debt issuance costs on the unsecured revolving credit facility were $11.7 million, and, at December 31, 2020, unamortized debt issuance costs on the unsecured revolving credit facility were $13.8 million. At June 30, 2021, future maturities of long-term debt (excluding finance lease liabilities) are as follows by year (in thousands): Year Ending December 31, 2021 $ 25,638 2022 58,403 2023 1,300,000 2024 2,467,000 2025 1,000,000 2026 1,850,000 2027 and thereafter 3,450,000 Total $ 10,151,041 Senior Unsecured Notes On February 26, 2021, we issued $1.1 billion in aggregate principal amount of 1.200% senior unsecured notes due March 2026. We incurred debt issuance costs of approximately $8.6 million, including underwriting fees, fees for professional services and registration fees, which were capitalized and reflected as a reduction of the related carrying amount of the notes in our consolidated balance sheet at June 30, 2021. Interest on the notes is payable semi-annually in arrears on March 1 and September 1 of each year, commencing September 1, 2021. The notes are unsecured and unsubordinated indebtedness and rank equally in right of payment with all of our other outstanding unsecured and unsubordinated indebtedness. We used the net proceeds from this offering to fund the redemption in full of the 3.800% senior unsecured notes due April 2021, to repay a portion of the outstanding indebtedness under our revolving credit facility and for general corporate purposes. As of June 30, 2021, our senior notes had a total carrying amount of $7.5 billion and an estimated fair value of $7.9 billion. The estimated fair value of our senior notes was based on quoted market prices in an active market and is considered to be a Level 1 measurement of the valuation hierarchy. The fair value of other long-term debt approximated its carrying amount at June 30, 2021. Compliance with Covenants The senior unsecured term loan and revolving credit facility contain customary conditions to funding, affirmative covenants, negative covenants, financial covenants and events of default. As of June 30, 2021, financial covenants under the term loan facility required a leverage ratio of 3.50 to 1.00 and an interest coverage ratio of 3.00 to 1.00. We were in compliance with all applicable covenants as of June 30, 2021. Derivative Agreements We have interest rate swap agreements with financial institutions to hedge changes in cash flows attributable to interest rate risk on a portion of our variable-rate debt instruments. Net amounts to be received or paid under the swap agreements are reflected as adjustments to interest expense. Since we have designated the interest rate swap agreements as portfolio cash flow hedges, unrealized gains or losses resulting from adjusting the swaps to fair value are recorded as components of other comprehensive income (loss). The fair values of our interest rate swaps were determined based on the present value of the estimated future net cash flows using implied rates in the applicable yield curve as of the valuation date. These derivative instruments were classified within Level 2 of the valuation hierarchy. The table below presents information about our derivative financial instruments, designated as cash flow hedges, included in the consolidated balance sheets: Fair Values Derivative Financial Instruments Balance Sheet Location Weighted-Average Fixed Rate of Interest at June 30, 2021 Range of Maturity Dates at June 30, 2021 December 31, 2020 (in thousands) Interest rate swaps (Notional of $300 million at December 31, 2020) Accounts payable and accrued liabilities NA NA $ — $ 1,330 Interest rate swaps (Notional of $1,250 million at June 30, 2021 and December 31, 2020) Other noncurrent liabilities 2.73% December 31, 2022 $ 48,474 $ 65,490 NA = not applicable. The table below presents the effects of our interest rate swaps on the consolidated statements of income and statements of comprehensive income for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (in thousands) Net unrealized gains (losses) recognized in other comprehensive income (loss) $ (410) $ (5,630) $ 584 $ (53,526) Net unrealized losses reclassified out of other comprehensive income (loss) to interest expense $ 9,662 $ 9,982 $ 20,500 $ 14,653 As of June 30, 2021, the amount of net unrealized losses in accumulated other comprehensive loss related to our interest rate swaps that is expected to be reclassified into interest expense during the next 12 months was $38.4 million. Interest Expense Interest expense was $79.0 million and $81.1 million for the three months ended June 30, 2021 and 2020, respectively, and $160.5 million and $162.2 million for the six months ended June 30, 2021 and 2020, respectively. |
INCOME TAX
INCOME TAX | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | INCOME TAX Our effective income tax rates for the three and six months ended June 30, 2021 were 21.2% and 16.8%, respectively. Our effective income tax rate for the three and six months ended June 30, 2021 differed from the U.S. statutory rate primarily as a result of foreign interest income not subject to tax, tax credits and the foreign-derived intangible income deduction, each favorably affecting the effective rate, and the effect of enacted tax law changes in the U.K. which required a remeasurement of deferred tax balances raising the effective rate. A change in the assessment of the need for a valuation allowance related to foreign tax credit carryforwards also had a favorable effect on the effective income tax rate for the six months ended June 30, 2021. Our effective income tax rates for three and six months ended June 30, 2020 were 3.0% and 9.0%, respectively. Our effective income tax rate for the three and six months ended June 30, 2020 differed from the U.S. statutory rate primarily as a result of tax credits, excess tax benefits of share-based awards and the foreign-derived intangible income deduction. The prior year effective tax rates were unusually low due to the effects of permanent differences on the lower income before income taxes. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY We repurchase our common stock mainly through open market repurchase plans and, at times, through accelerated share repurchase ("ASR") programs. During the three months ended June 30, 2021, we repurchased and retired 1,501,549 shares of our common stock at a cost, including commissions, of $290.0 million, or $193.12 per share. During the three months ended June 30, 2020, there were no repurchases. During the six months ended June 30, 2021 and 2020, we repurchased and retired 5,456,949 and 2,094,731 shares of our common stock at a cost, including commissions, of $1,072.9 million and $404.0 million, or $196.65 per share and $192.85 per share, respectively. The activity for the six months ended June 30, 2021 included the repurchase of a total of 2,491,161 shares at an average price of $200.71 per share under an ASR program. On February 10, 2021, we entered into an ASR agreement with a financial institution to repurchase an aggregate of $500 million of our common stock. In exchange for an up-front payment of $500 million, the financial institution committed to deliver a number of shares during the A SR program purchase period, which ended on March 31, 2021. As of June 30, 2021, the remaining amount available under our share repurchase program was $611.0 million. On July 29, 2021, our board of directors approved an increase to our existing share repurchase program authorization, which raised the total available authorization to $1.5 billion. |
SHARE-BASED AWARDS AND STOCK OP
SHARE-BASED AWARDS AND STOCK OPTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED AWARDS AND STOCK OPTIONS | SHARE-BASED AWARDS AND STOCK OPTIONS The following table summarizes share-based compensation expense and the related income tax benefit recognized for our share-based awards and stock options: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (in thousands) (in thousands) Share-based compensation expense $ 43,325 $ 34,983 $ 80,490 $ 62,805 Income tax benefit $ 9,972 $ 7,742 $ 18,371 $ 14,215 Share-Based Awards The following table summarizes the changes in unvested restricted stock and performance awards for the six months ended June 30, 2021: Shares Weighted-Average (in thousands) Unvested at December 31, 2020 1,546 $176.71 Granted 853 197.96 Vested (663) 146.58 Forfeited (46) 184.69 Unvested at June 30, 2021 1,690 $184.16 The total fair value of restricted stock and performance awards vested during the six months ended June 30, 2021 and June 30, 2020 was $97.2 million and $76.0 million, respectively. For restricted stock and performance awards, we recognized compensation expense of $39.9 million and $30.8 million during the three months ended June 30, 2021 and 2020, respectively, and $73.3 million and $56.0 million during the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, there was $254.1 million of unrecognized compensation expense related to unvested restricted stock and performance awards that we expect to recognize over a weighted-average period of 2.2 years. Stock Options The following table summarizes stock option activity for the six months ended June 30, 2021: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at December 31, 2020 1,253 $93.66 6.3 $152.6 Granted 112 196.06 Forfeited (1) 113.48 Exercised (180) 69.67 Outstanding at June 30, 2021 1,184 $106.82 6.3 $98.2 Options vested and exercisable at June 30, 2021 908 $86.25 5.6 $92.6 We recognized compensation expense for stock options of $1.8 million and $2.2 million during the three months ended June 30, 2021 and 2020, respectively, and $4.2 million and $4.1 million for the six months ended June 30, 2021 and 2020, respectively. The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2021 and 2020 was $23.1 million and $66.5 million, respectively. As of June 30, 2021, we had $11.9 million of unrecognized compensation expense related to unvested stock options that we expect to recognize over a weighted-average period of 2.1 years. The weighted-average grant-date fair value of stock options granted during the six months ended June 30, 2021 and 2020 was $65.99 and $54.85, 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, 2021 June 30, 2020 Risk-free interest rate 0.59% 1.24% Expected volatility 40% 30% Dividend yield 0.44% 0.39% Expected term (years) 5 5 The risk-free interest rate was 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 was based on our historical volatility. The dividend yield assumption was determined 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, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREBasic earnings per share ("EPS") was 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 was 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 dilutive share base for the three and six months ended June 30, 2021 excluded approximately 234,813 shares related to stock options that would have an antidilutive effect on the computation of diluted earnings per share. The dilutive share base for the three and six months ended June 30, 2020 excluded approximately 124,888 shares related to stock options that would have an antidilutive effect on the computation of diluted earnings per share. The following table sets forth the computation of diluted weighted-average number of shares outstanding for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (in thousands) Basic weighted-average number of shares outstanding 294,914 299,140 295,665 299,264 Plus: Dilutive effect of stock options and other share-based awards 1,225 1,106 1,236 1,277 Diluted weighted-average number of shares outstanding 296,139 300,246 296,901 300,541 |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION Cash, cash equivalents and restricted cash A reconciliation of cash, cash equivalents and restricted cash in the consolidated statements of cash flows as of June 30, 2021 and December 31, 2020 to the amounts in the consolidated balance sheets is as follows: June 30, 2021 December 31, 2020 (in thousands) Cash and cash equivalents $ 1,799,549 $ 1,945,868 Restricted cash included in prepaid expenses and other current assets 140,175 143,903 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 1,939,724 $ 2,089,771 Accounts payable and accrued liabilities At June 30, 2021 and December 31, 2020, accounts payable and accrued liabilities in the consolidated balance sheet included obligations totaling $17.4 million and $48.4 million, respectively, for employee termination benefits resulting from merger-related integration activities. During the three months ended June 30, 2021 and 2020, we recognized charges for employee termination benefits of $13.1 million and $24.1 million, which included $0.7 million and $1.7 million of share-based compensation expense, respectively. During the six months ended June 30, 2021 and 2020, we recognized charges for employee termination benefits of $38.3 million and $41.7 million, which included $1.2 million and $4.2 million of share-based compensation expense, respectively. As of June 30, 2021, the cumulative amount of recognized charges for employee termination benefits resulting from merger-related integration activities was $178.7 million, which included $25.2 million of share-based compensation expense. These charges are recorded within selling, general and administrative expenses in our consolidated statements of income and included within Corporate expenses for segment reporting purposes. New obligations may arise and related expenses may be incurred as merger-related integration activities continue in 2021. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in the accumulated balances for each component of other comprehensive income (loss) were as follows for the three and six months ended June 30, 2021 and 2020: Foreign Currency Translation Gains (Losses) Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at March 31, 2021 $ (141,070) $ (72,575) $ 1,272 $ (212,373) Other comprehensive income (loss) 34,188 7,027 (1,549) 39,666 Balance at June 30, 2021 $ (106,882) $ (65,548) $ (277) $ (172,707) Balance at March 31, 2020 $ (438,350) $ (102,198) $ 768 $ (539,780) Other comprehensive income 77,217 3,295 122 80,634 Balance at June 30, 2020 $ (361,133) $ (98,903) $ 890 $ (459,146) Other comprehensive income attributable to noncontrolling interests, which relates only to foreign currency translation, was $2.7 million and $5.4 million for the three months ended June 30, 2021 and 2020, respectively. Foreign Currency Translation Gains (Losses) Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at December 31, 2020 $ (114,227) $ (81,543) $ (6,503) $ (202,273) Other comprehensive income 7,345 15,995 6,226 29,566 Balance at June 30, 2021 $ (106,882) $ (65,548) $ (277) $ (172,707) Balance at December 31, 2019 $ (241,899) $ (69,319) $ 647 $ (310,571) Other comprehensive (loss) income (119,234) (29,584) 243 (148,575) Balance at June 30, 2020 $ (361,133) $ (98,903) $ 890 $ (459,146) Other comprehensive loss attributable to noncontrolling interests, which relates only to foreign currency translation, was $3.2 million and $1.3 million for the six months ended June 30, 2021 and 2020, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATIONWe operate in three reportable segments: Merchant Solutions, Issuer Solutions and Business and Consumer Solutions. 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 share-based compensation costs are included in Corporate. Interest and other income, interest and other expense, income tax expense and equity in income of equity method investments, net of tax, 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, 2020 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, consolidated operating income and consolidated depreciation and amortization was as follows for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (in thousands) Revenues : (1) Merchant Solutions $ 1,426,755 $ 1,001,555 $ 2,694,627 $ 2,216,824 Issuer Solutions 505,932 470,025 1,006,183 973,787 Business and Consumer Solutions 227,355 216,722 470,941 420,668 Intersegment eliminations (22,605) (16,350) (44,307) (35,729) Consolidated revenues $ 2,137,437 $ 1,671,952 $ 4,127,444 $ 3,575,550 Operating income (loss) (1)(2) : Merchant Solutions $ 437,293 $ 175,078 $ 777,283 $ 479,231 Issuer Solutions 74,806 58,027 143,262 117,331 Business and Consumer Solutions 42,283 48,195 104,205 79,307 Corporate (191,824) (173,726) (386,933) (324,316) Consolidated operating income $ 362,558 $ 107,574 $ 637,817 $ 351,553 Depreciation and amortization : (1) Merchant Solutions $ 248,503 $ 236,840 $ 499,099 $ 469,862 Issuer Solutions 145,691 136,254 290,300 272,991 Business and Consumer Solutions 21,938 24,114 43,858 47,755 Corporate 5,912 5,467 14,359 9,885 Consolidated depreciation and amortization $ 422,044 $ 402,675 $ 847,616 $ 800,493 (1) Revenues, operating income and depreciation and amortization reflect the effects of acquired businesses from the respective acquisition dates. For further discussion of our acquisitions, see "Note 2—Acquisitions." |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Purchase Obligations We have contractual obligations related to service arrangements with suppliers for fixed or minimum amounts. Future minimum payments at June 30, 2021 for purchase obligations were as follows (in thousands): Year Ending December 31: 2021 $ 285,278 2022 237,176 2023 181,545 2024 123,801 2025 151,300 2026 184,376 2027 and thereafter 754,025 Total future minimum payments $ 1,917,501 Legal Matters We are party to a number of claims and lawsuits incidental to our business. In our opinion, the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, are not expected to have a material adverse effect on our financial position, liquidity, results of operations or cash flows. On September 23, 2019, a jury in the Superior Court of Dekalb County Georgia, awarded Frontline Processing Corp. ("Frontline") $135.2 million in damages, costs and attorney's fees (plus interest) following a trial of a breach of contract dispute between Frontline and Global Payments, wherein Frontline alleged that Global Payments violated provisions of the parties' Referral Agreement and Master Services Agreement. The Superior Court entered a final judgment on the verdict in favor of Frontline on September 30, 2019. We appealed the decision to the Georgia Court of Appeals. On June 30, 2021, a panel of the Georgia Court of Appeals unanimously reversed the judgment, including the entire damages award. We previously determined that it was not probable that a loss had been incurred under the applicable accounting standard (ASC Topic 450, Contingencies |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Business, consolidation and presentation | Business, consolidation and presentation - We are a leading payments technology company delivering innovative software and services to our customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world. We operate in three reportable segments: Merchant Solutions, Issuer Solutions and Business and Consumer Solutions, which are described in "Note 12—Segment Information." Global Payments Inc. and its consolidated subsidiaries are referred to herein collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise. These unaudited consolidated financial statements include our accounts and those of our majority-owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated balance sheet as of December 31, 2020 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 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, 2020. |
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. In particular, the future magnitude, duration and effects of the COVID-19 pandemic are difficult to predict at this time, and the ultimate effect could result in additional charges related to the recoverability of assets, including financial assets, long-lived assets and goodwill and other losses. These unaudited consolidated financial statements reflect the financial statement effects of COVID-19 based upon management’s estimates and assumptions utilizing the most currently available information. |
Recently adopted accounting pronouncements and recently issued pronouncements not yet adopted | Recently adopted accounting pronouncements Accounting Standards Update ("ASU") 2019-12 — In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ," which is intended to enhance and simplify various aspects of the accounting for income taxes. The amendments in this update remove certain exceptions to the general principles in Accounting Standards Codification ("ASC") Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and amends existing guidance to improve consistency in application of the accounting for franchise taxes, enacted changes in tax laws or rates and transactions that result in a step-up in the tax basis of goodwill. The adoption of ASU 2019-12 on January 1, 2021 did not have a material effect on our consolidated financial statements. Recently issued pronouncements not yet adopted ASU 2020-04 — In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ," which provides optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference London Inter-bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients and which are retained through the end of the hedging relationship. The amendments in this update also include a general principle that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. If elected, the optional expedients for contract modifications must be applied consistently for all eligible contracts or eligible transactions within the relevant ASC Topic or Industry Subtopic that contains the guidance that otherwise would be required to be applied. The amendments in this update were effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. A portion of our indebtedness bears interest at a variable rate based on LIBOR. Furthermore, we have entered into hedging instruments to manage our exposure to fluctuations in the LIBOR benchmark interest rate. We are evaluating the effect of the discontinuance of LIBOR on our outstanding debt and hedging instruments and the related effect of ASU 2020-04 on our consolidated financial statements. |
ACQUISITION (Tables)
ACQUISITION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, are as follows (in thousands): Cash and cash equivalents $ 67,374 Accounts receivable 1,033 Identifiable intangible assets 410,443 Property and equipment 3,634 Other assets 9,141 Accounts payable and accrued liabilities (65,753) Deferred income tax liabilities (10,709) Other liabilities (8,268) Total identifiable net assets 406,895 Goodwill 525,929 Total purchase consideration $ 932,824 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present a disaggregation of our revenues from contracts with customers by geography for each of our reportable segments for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 1,202,970 $ 379,121 $ 224,529 $ (16,768) $ 1,789,852 Europe 166,644 120,974 2,826 — 290,444 Asia Pacific 57,141 5,837 — (5,837) 57,141 $ 1,426,755 $ 505,932 $ 227,355 $ (22,605) $ 2,137,437 Three Months Ended June 30, 2020 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 862,927 $ 363,140 $ 216,722 $ (14,728) $ 1,428,061 Europe 102,460 105,263 — — 207,723 Asia Pacific 36,168 1,622 — (1,622) 36,168 $ 1,001,555 $ 470,025 $ 216,722 $ (16,350) $ 1,671,952 Six Months Ended June 30, 2021 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 2,283,440 $ 757,164 $ 465,163 $ (33,673) $ 3,472,094 Europe 299,578 238,386 5,778 — 543,742 Asia Pacific 111,609 10,633 — (10,634) 111,608 $ 2,694,627 $ 1,006,183 $ 470,941 $ (44,307) $ 4,127,444 Six Months Ended June 30, 2020 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 1,887,433 $ 756,893 $ 420,668 $ (32,461) $ 3,032,533 Europe 238,459 213,626 — — 452,085 Asia Pacific 90,932 3,268 — (3,268) 90,932 $ 2,216,824 $ 973,787 $ 420,668 $ (35,729) $ 3,575,550 The following table presents a disaggregation of our Merchant Solutions segment revenues by distribution channel for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (in thousands) Relationship-led $ 778,978 $ 566,414 $ 1,445,890 $ 1,242,935 Technology-enabled 647,777 435,141 1,248,737 973,889 $ 1,426,755 $ 1,001,555 $ 2,694,627 $ 2,216,824 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to contracts from customers as of June 30, 2021 and December 31, 2020 was as follows: Balance Sheet Location June 30, 2021 December 31, 2020 (in thousands) Assets: Capitalized costs to obtain customer contracts, net Other noncurrent assets $ 270,143 $ 253,780 Capitalized costs to fulfill customer contracts, net Other noncurrent assets 99,640 81,371 Liabilities: Contract liabilities, net (current) Accounts payable and accrued liabilities 216,331 217,938 Contract liabilities, net (noncurrent) Other noncurrent liabilities 49,610 52,944 |
Schedule of Expected Timing of Satisfaction of Remaining Performance Obligation | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at June 30, 2021. However, as permitted, we have elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. Accordingly, the total amount of unsatisfied or partially unsatisfied performance obligations related to processing services is significantly higher than the amounts disclosed in the table below (in thousands): Year Ending December 31, 2021 $ 502,058 2022 845,561 2023 627,756 2024 450,703 2025 354,058 2026 280,326 2027 and thereafter 446,815 Total $ 3,507,277 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | As of June 30, 2021 and December 31, 2020, goodwill and other intangible assets consisted of the following: June 30, 2021 December 31, 2020 (in thousands) Goodwill $ 24,422,012 $ 23,871,451 Other intangible assets: Customer-related intangible assets $ 9,476,680 $ 9,275,093 Acquired technologies 2,975,966 2,795,991 Contract-based intangible assets 2,003,166 1,981,260 Trademarks and trade names 1,286,627 1,239,925 15,742,439 15,292,269 Less accumulated amortization: Customer-related intangible assets 2,257,116 1,914,214 Acquired technologies 1,169,394 960,281 Contract-based intangible assets 151,556 120,631 Trademarks and trade names 349,270 281,260 3,927,336 3,276,386 $ 11,815,103 $ 12,015,883 |
Schedule of Carrying Amount of Goodwill | The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the six months ended June 30, 2021: Merchant Issuer Business and Total (in thousands) Balance at December 31, 2020 $ 13,548,690 $ 7,957,616 $ 2,365,145 $ 23,871,451 Goodwill acquired 563,232 — — 563,232 Effect of foreign currency translation (9,669) 2,907 (707) (7,469) Measurement period adjustments (5,202) — — (5,202) Balance at June 30, 2021 $ 14,097,051 $ 7,960,523 $ 2,364,438 $ 24,422,012 |
LONG-TERM DEBT AND LINES OF C_2
LONG-TERM DEBT AND LINES OF CREDIT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | As of June 30, 2021 and December 31, 2020, long-term debt consisted of the following: June 30, 2021 December 31, 2020 (in thousands) 3.800% senior notes due April 1, 2021 $ — $ 752,199 3.750% senior notes due June 1, 2023 559,722 562,258 4.000% senior notes due June 1, 2023 562,634 565,930 2.650% senior notes due February 15, 2025 993,954 993,110 1.200% senior notes due March 1, 2026 1,091,057 — 4.800% senior notes due April 1, 2026 803,674 809,324 4.450% senior notes due June 1, 2028 480,391 482,588 3.200% senior notes due August 15, 2029 1,237,215 1,236,424 2.900% senior notes due May 15, 2030 989,611 989,025 4.150% senior notes due August 15, 2049 739,967 739,789 Unsecured term loan facility 1,987,785 1,985,776 Unsecured revolving credit facility 717,000 36,000 Finance lease liabilities 72,539 75,989 Other borrowings 34,041 65,352 Total long-term debt 10,269,590 9,293,764 Less current portion 52,611 827,357 Long-term debt, excluding current portion $ 10,216,979 $ 8,466,407 |
Schedule of Maturities of Long-Term Debt | At June 30, 2021, future maturities of long-term debt (excluding finance lease liabilities) are as follows by year (in thousands): Year Ending December 31, 2021 $ 25,638 2022 58,403 2023 1,300,000 2024 2,467,000 2025 1,000,000 2026 1,850,000 2027 and thereafter 3,450,000 Total $ 10,151,041 |
Schedule of Derivative Instruments | The table below presents information about our derivative financial instruments, designated as cash flow hedges, included in the consolidated balance sheets: Fair Values Derivative Financial Instruments Balance Sheet Location Weighted-Average Fixed Rate of Interest at June 30, 2021 Range of Maturity Dates at June 30, 2021 December 31, 2020 (in thousands) Interest rate swaps (Notional of $300 million at December 31, 2020) Accounts payable and accrued liabilities NA NA $ — $ 1,330 Interest rate swaps (Notional of $1,250 million at June 30, 2021 and December 31, 2020) Other noncurrent liabilities 2.73% December 31, 2022 $ 48,474 $ 65,490 NA = not applicable. |
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 statements of comprehensive income for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (in thousands) Net unrealized gains (losses) recognized in other comprehensive income (loss) $ (410) $ (5,630) $ 584 $ (53,526) Net unrealized losses reclassified out of other comprehensive income (loss) to interest expense $ 9,662 $ 9,982 $ 20,500 $ 14,653 |
SHARE-BASED AWARDS AND STOCK _2
SHARE-BASED AWARDS AND STOCK OPTIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [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, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (in thousands) (in thousands) Share-based compensation expense $ 43,325 $ 34,983 $ 80,490 $ 62,805 Income tax benefit $ 9,972 $ 7,742 $ 18,371 $ 14,215 |
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, 2021: Shares Weighted-Average (in thousands) Unvested at December 31, 2020 1,546 $176.71 Granted 853 197.96 Vested (663) 146.58 Forfeited (46) 184.69 Unvested at June 30, 2021 1,690 $184.16 |
Schedule of Stock Option Activity | The following table summarizes stock option activity for the six months ended June 30, 2021: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at December 31, 2020 1,253 $93.66 6.3 $152.6 Granted 112 196.06 Forfeited (1) 113.48 Exercised (180) 69.67 Outstanding at June 30, 2021 1,184 $106.82 6.3 $98.2 Options vested and exercisable at June 30, 2021 908 $86.25 5.6 $92.6 |
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, 2021 June 30, 2020 Risk-free interest rate 0.59% 1.24% Expected volatility 40% 30% Dividend yield 0.44% 0.39% Expected term (years) 5 5 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and 2020: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (in thousands) Basic weighted-average number of shares outstanding 294,914 299,140 295,665 299,264 Plus: Dilutive effect of stock options and other share-based awards 1,225 1,106 1,236 1,277 Diluted weighted-average number of shares outstanding 296,139 300,246 296,901 300,541 |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Reconciliation of Cash and Cash Equivalents | A reconciliation of cash, cash equivalents and restricted cash in the consolidated statements of cash flows as of June 30, 2021 and December 31, 2020 to the amounts in the consolidated balance sheets is as follows: June 30, 2021 December 31, 2020 (in thousands) Cash and cash equivalents $ 1,799,549 $ 1,945,868 Restricted cash included in prepaid expenses and other current assets 140,175 143,903 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 1,939,724 $ 2,089,771 |
Schedule of Reconciliation of Restricted Cash | A reconciliation of cash, cash equivalents and restricted cash in the consolidated statements of cash flows as of June 30, 2021 and December 31, 2020 to the amounts in the consolidated balance sheets is as follows: June 30, 2021 December 31, 2020 (in thousands) Cash and cash equivalents $ 1,799,549 $ 1,945,868 Restricted cash included in prepaid expenses and other current assets 140,175 143,903 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 1,939,724 $ 2,089,771 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The changes in the accumulated balances for each component of other comprehensive income (loss) were as follows for the three and six months ended June 30, 2021 and 2020: Foreign Currency Translation Gains (Losses) Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at March 31, 2021 $ (141,070) $ (72,575) $ 1,272 $ (212,373) Other comprehensive income (loss) 34,188 7,027 (1,549) 39,666 Balance at June 30, 2021 $ (106,882) $ (65,548) $ (277) $ (172,707) Balance at March 31, 2020 $ (438,350) $ (102,198) $ 768 $ (539,780) Other comprehensive income 77,217 3,295 122 80,634 Balance at June 30, 2020 $ (361,133) $ (98,903) $ 890 $ (459,146) Foreign Currency Translation Gains (Losses) Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at December 31, 2020 $ (114,227) $ (81,543) $ (6,503) $ (202,273) Other comprehensive income 7,345 15,995 6,226 29,566 Balance at June 30, 2021 $ (106,882) $ (65,548) $ (277) $ (172,707) Balance at December 31, 2019 $ (241,899) $ (69,319) $ 647 $ (310,571) Other comprehensive (loss) income (119,234) (29,584) 243 (148,575) Balance at June 30, 2020 $ (361,133) $ (98,903) $ 890 $ (459,146) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information on segments and reconciliations to consolidated revenues, consolidated operating income and consolidated depreciation and amortization was as follows for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (in thousands) Revenues : (1) Merchant Solutions $ 1,426,755 $ 1,001,555 $ 2,694,627 $ 2,216,824 Issuer Solutions 505,932 470,025 1,006,183 973,787 Business and Consumer Solutions 227,355 216,722 470,941 420,668 Intersegment eliminations (22,605) (16,350) (44,307) (35,729) Consolidated revenues $ 2,137,437 $ 1,671,952 $ 4,127,444 $ 3,575,550 Operating income (loss) (1)(2) : Merchant Solutions $ 437,293 $ 175,078 $ 777,283 $ 479,231 Issuer Solutions 74,806 58,027 143,262 117,331 Business and Consumer Solutions 42,283 48,195 104,205 79,307 Corporate (191,824) (173,726) (386,933) (324,316) Consolidated operating income $ 362,558 $ 107,574 $ 637,817 $ 351,553 Depreciation and amortization : (1) Merchant Solutions $ 248,503 $ 236,840 $ 499,099 $ 469,862 Issuer Solutions 145,691 136,254 290,300 272,991 Business and Consumer Solutions 21,938 24,114 43,858 47,755 Corporate 5,912 5,467 14,359 9,885 Consolidated depreciation and amortization $ 422,044 $ 402,675 $ 847,616 $ 800,493 (1) Revenues, operating income and depreciation and amortization reflect the effects of acquired businesses from the respective acquisition dates. For further discussion of our acquisitions, see "Note 2—Acquisitions." |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments for Purchase Obligations | Future minimum payments at June 30, 2021 for purchase obligations were as follows (in thousands): Year Ending December 31: 2021 $ 285,278 2022 237,176 2023 181,545 2024 123,801 2025 151,300 2026 184,376 2027 and thereafter 754,025 Total future minimum payments $ 1,917,501 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 3 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - USD ($) $ in Thousands | Jun. 10, 2021 | Jun. 30, 2021 |
Business Acquisition [Line Items] | ||
Goodwill acquired | $ 563,232 | |
Zego | ||
Business Acquisition [Line Items] | ||
Cash consideration paid to acquire business | $ 933,000 | |
Zego | Merchants Solutions | ||
Business Acquisition [Line Items] | ||
Goodwill acquired | $ 525,900 | |
Zego | Minimum | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets, remaining amortization period | 7 years | |
Zego | Maximum | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets, remaining amortization period | 14 years |
ACQUISITION -Schedule of Recogn
ACQUISITION -Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 10, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 24,422,012 | $ 23,871,451 | |
Zego | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 67,374 | ||
Accounts receivable | 1,033 | ||
Identifiable intangible assets | 410,443 | ||
Property and equipment | 3,634 | ||
Other assets | 9,141 | ||
Accounts payable and accrued liabilities | (65,753) | ||
Deferred income tax liabilities | (10,709) | ||
Other liabilities | (8,268) | ||
Total identifiable net assets | 406,895 | ||
Goodwill | 525,929 | ||
Total purchase consideration | $ 932,824 |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,137,437 | $ 1,671,952 | $ 4,127,444 | $ 3,575,550 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,789,852 | 1,428,061 | 3,472,094 | 3,032,533 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 290,444 | 207,723 | 543,742 | 452,085 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 57,141 | 36,168 | 111,608 | 90,932 |
Operating Segments | Merchant Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,426,755 | 1,001,555 | 2,694,627 | 2,216,824 |
Operating Segments | Merchant Solutions | Relationship-led | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 778,978 | 566,414 | 1,445,890 | 1,242,935 |
Operating Segments | Merchant Solutions | Technology-enabled | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 647,777 | 435,141 | 1,248,737 | 973,889 |
Operating Segments | Merchant Solutions | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,202,970 | 862,927 | 2,283,440 | 1,887,433 |
Operating Segments | Merchant Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 166,644 | 102,460 | 299,578 | 238,459 |
Operating Segments | Merchant Solutions | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 57,141 | 36,168 | 111,609 | 90,932 |
Operating Segments | Issuer Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 505,932 | 470,025 | 1,006,183 | 973,787 |
Operating Segments | Issuer Solutions | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 379,121 | 363,140 | 757,164 | 756,893 |
Operating Segments | Issuer Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 120,974 | 105,263 | 238,386 | 213,626 |
Operating Segments | Issuer Solutions | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,837 | 1,622 | 10,633 | 3,268 |
Operating Segments | Business and Consumer Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 227,355 | 216,722 | 470,941 | 420,668 |
Operating Segments | Business and Consumer Solutions | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 224,529 | 216,722 | 465,163 | 420,668 |
Operating Segments | Business and Consumer Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,826 | 0 | 5,778 | 0 |
Operating Segments | Business and Consumer Solutions | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (22,605) | (16,350) | (44,307) | (35,729) |
Intersegment Eliminations | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (16,768) | (14,728) | (33,673) | (32,461) |
Intersegment Eliminations | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ (5,837) | $ (1,622) | $ (10,634) | $ (3,268) |
REVENUES - Supplemental Balance
REVENUES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Liabilities: | ||
Contract liabilities, net (current) | $ 216,331 | $ 217,938 |
Contract liabilities, net (noncurrent) | 49,610 | 52,944 |
Obtain Contract | ||
Assets: | ||
Capitalized costs, net | 270,143 | 253,780 |
Fulfill Contract | ||
Assets: | ||
Capitalized costs, net | $ 99,640 | $ 81,371 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized from contract liabilities balances at beginning of the period | $ 85 | $ 86.7 | $ 146.6 | $ 159.9 |
REVENUES - Remaining Performanc
REVENUES - Remaining Performance Obligations (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 3,507,277 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 502,058 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 845,561 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 627,756 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 450,703 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 354,058 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 280,326 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 446,815 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 24,422,012 | $ 23,871,451 |
Other intangible assets | 15,742,439 | 15,292,269 |
Less accumulated amortization on intangible assets | 3,927,336 | 3,276,386 |
Other intangible assets, net | 11,815,103 | 12,015,883 |
Customer-related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 9,476,680 | 9,275,093 |
Less accumulated amortization on intangible assets | 2,257,116 | 1,914,214 |
Acquired technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 2,975,966 | 2,795,991 |
Less accumulated amortization on intangible assets | 1,169,394 | 960,281 |
Contract-based intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 2,003,166 | 1,981,260 |
Less accumulated amortization on intangible assets | 151,556 | 120,631 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 1,286,627 | 1,239,925 |
Less accumulated amortization on intangible assets | $ 349,270 | $ 281,260 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill Roll-Forward (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 23,871,451,000 | |
Goodwill acquired | 563,232,000 | |
Effect of foreign currency translation | (7,469,000) | |
Measurement period adjustments | (5,202,000) | |
Balance at end of period | 24,422,012,000 | |
Accumulated impairment losses for goodwill | 0 | $ 0 |
Merchant Solutions | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 13,548,690,000 | |
Goodwill acquired | 563,232,000 | |
Effect of foreign currency translation | (9,669,000) | |
Measurement period adjustments | (5,202,000) | |
Balance at end of period | 14,097,051,000 | |
Issuer Solutions | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 7,957,616,000 | |
Goodwill acquired | 0 | |
Effect of foreign currency translation | 2,907,000 | |
Measurement period adjustments | 0 | |
Balance at end of period | 7,960,523,000 | |
Business and Consumer Solutions | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 2,365,145,000 | |
Goodwill acquired | 0 | |
Effect of foreign currency translation | (707,000) | |
Measurement period adjustments | 0 | |
Balance at end of period | $ 2,364,438,000 |
LONG-TERM DEBT AND LINES OF C_3
LONG-TERM DEBT AND LINES OF CREDIT - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Feb. 26, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Finance lease liabilities | $ 72,539 | $ 75,989 | |
Total long-term debt | 10,269,590 | 9,293,764 | |
Less current portion | 52,611 | 827,357 | |
Long-term debt, excluding current portion | 10,216,979 | 8,466,407 | |
Unsecured term loan facility | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | 1,987,785 | 1,985,776 | |
Unsecured revolving credit facility | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | 717,000 | 36,000 | |
Other borrowings | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | 34,041 | 65,352 | |
3.800% senior notes due April 1, 2021 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 0 | 752,199 | |
Stated interest rate (as a percent) | 3.80% | ||
3.750% senior notes due June 1, 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 559,722 | 562,258 | |
Stated interest rate (as a percent) | 3.75% | ||
4.000% senior notes due June 1, 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 562,634 | 565,930 | |
Stated interest rate (as a percent) | 4.00% | ||
2.650% senior notes due February 15, 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 993,954 | 993,110 | |
Stated interest rate (as a percent) | 2.65% | ||
1.200% senior notes due March 1, 2026 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 1,091,057 | 0 | |
Stated interest rate (as a percent) | 1.20% | 1.20% | |
4.800% senior notes due April 1, 2026 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 803,674 | 809,324 | |
Stated interest rate (as a percent) | 4.80% | ||
4.450% senior notes due June 1, 2028 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 480,391 | 482,588 | |
Stated interest rate (as a percent) | 4.45% | ||
3.200% senior notes due August 15, 2029 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 1,237,215 | 1,236,424 | |
Stated interest rate (as a percent) | 3.20% | ||
2.900% senior notes due May 15, 2030 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 989,611 | 989,025 | |
Stated interest rate (as a percent) | 2.90% | ||
4.150% senior notes due August 15, 2049 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 739,967 | $ 739,789 | |
Stated interest rate (as a percent) | 4.15% |
LONG-TERM DEBT AND LINES OF C_4
LONG-TERM DEBT AND LINES OF CREDIT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Feb. 26, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 10,151,041 | $ 10,151,041 | ||||
Interest expense | 79,000 | $ 81,100 | 160,500 | $ 162,200 | ||
Interest rate swap | ||||||
Debt Instrument [Line Items] | ||||||
Accumulated other comprehensive income (loss) related to interest rate | 38,400 | 38,400 | ||||
Senior Notes and Term Loans | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | 51,400 | 51,400 | ||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized discount | 9,000 | 9,000 | $ 8,500 | |||
Long-term debt | 7,500,000 | 7,500,000 | ||||
Fair value of debt instrument | $ 7,900,000 | $ 7,900,000 | ||||
Senior Notes | 1.200% senior notes due March 1, 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 1,100,000 | |||||
Stated interest rate (as a percent) | 1.20% | 1.20% | 1.20% | |||
Debt issuance costs | $ 8,600 | |||||
Term Loans | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | 47,400 | |||||
Unsecured Debt | Unsecured revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | $ 11,700 | $ 11,700 | ||||
Unsecured Debt | Unsecured term loan facility | ||||||
Debt Instrument [Line Items] | ||||||
Minimum leverage ratio | 3.50 | 3.50 | ||||
Minimum interest coverage ratio | 3 | 3 | ||||
Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | $ 13,800 |
LONG-TERM DEBT AND LINES OF C_5
LONG-TERM DEBT AND LINES OF CREDIT - Maturities of Long-Term Debt (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 25,638 |
2022 | 58,403 |
2023 | 1,300,000 |
2024 | 2,467,000 |
2025 | 1,000,000 |
2026 | 1,850,000 |
2027 and thereafter | 3,450,000 |
Total | $ 10,151,041 |
LONG-TERM DEBT AND LINES OF C_6
LONG-TERM DEBT AND LINES OF CREDIT - Derivative Instruments (Details) - Interest rate swap - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts payable and accrued liabilities | ||
Debt Instrument [Line Items] | ||
Notional amount | $ 300,000 | |
Interest rate swaps | $ 0 | 1,330 |
Other noncurrent liabilities | ||
Debt Instrument [Line Items] | ||
Notional amount | $ 1,250,000 | 1,250,000 |
Weighted-average fixed rate of interest (as a percent) | 2.73% | |
Interest rate swaps | $ 48,474 | $ 65,490 |
LONG-TERM DEBT AND LINES OF C_7
LONG-TERM DEBT AND LINES OF CREDIT - Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Net unrealized gains (losses) recognized in other comprehensive income (loss) | $ (410) | $ (5,630) | $ 584 | $ (53,526) |
Net unrealized losses reclassified out of other comprehensive income (loss) to interest expense | $ 9,662 | $ 9,982 | $ 20,500 | $ 14,653 |
INCOME TAX - Narrative (Details
INCOME TAX - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (as a percent) | (21.20%) | 3.00% | (16.80%) | (9.00%) |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) | Jul. 29, 2021 | Feb. 10, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchased and retired (shares) | 1,501,549 | 0 | 5,456,949 | 2,094,731 | ||
Value of stock repurchased and retired | $ 289,977,000 | $ 1,072,934,000 | $ 403,962,000 | |||
Average cost per share (USD per share) | $ 193.12 | $ 196.65 | $ 192.85 | |||
Total stock delivered under accelerated share repurchase program to date (shares) | 2,491,161 | 2,491,161 | ||||
Average price per share of stock delivered under accelerated share repurchase program to date (USD per share) | $ 200.71 | $ 200.71 | ||||
Authorized amount of accelerated share repurchase program | $ 500,000,000 | |||||
Up-front payment for accelerated share repurchase program | $ 500,000,000 | |||||
Remaining authorized repurchase amount (up to) | $ 611,000,000 | $ 611,000,000 | ||||
Subsequent Event | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorized repurchase amount | $ 1,500,000,000 | |||||
Dividends declared (USD per share) | $ 0.25 |
SHARE-BASED AWARDS AND STOCK _3
SHARE-BASED AWARDS AND STOCK OPTIONS - Share-Based Compensation Expense and Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Share-based compensation expense | $ 43,325 | $ 34,983 | $ 80,490 | $ 62,805 |
Income tax benefit | $ 9,972 | $ 7,742 | $ 18,371 | $ 14,215 |
SHARE-BASED AWARDS AND STOCK _4
SHARE-BASED AWARDS AND STOCK OPTIONS - Share-Based Awards (Details) - Restricted Stock Awards and Performance Units shares in Thousands | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Shares | |
Beginning balance (shares) | shares | 1,546 |
Granted (shares) | shares | 853 |
Vested (shares) | shares | (663) |
Forfeited (shares) | shares | (46) |
Ending balance (shares) | shares | 1,690 |
Weighted-Average Grant-Date Fair Value | |
Beginning balance (USD per share) | $ / shares | $ 176.71 |
Granted (USD per share) | $ / shares | 197.96 |
Vested (USD per share) | $ / shares | 146.58 |
Forfeited (USD per share) | $ / shares | 184.69 |
Ending balance (USD per share) | $ / shares | $ 184.16 |
SHARE-BASED AWARDS AND STOCK _5
SHARE-BASED AWARDS AND STOCK OPTIONS - Share-Based Awards - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 43,325 | $ 34,983 | $ 80,490 | $ 62,805 |
Restricted Stock Awards and Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of share-based awards vested | 97,200 | 76,000 | ||
Share-based compensation expense | 39,900 | $ 30,800 | 73,300 | $ 56,000 |
Compensation not yet recognized | $ 254,100 | $ 254,100 | ||
Weighted-average period of unrecognized compensation cost | 2 years 2 months 12 days |
SHARE-BASED AWARDS AND STOCK _6
SHARE-BASED AWARDS AND STOCK 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, 2021 | Dec. 31, 2020 | |
Options | ||
Outstanding at beginning of period (shares) | 1,253 | |
Granted (shares) | 112 | |
Forfeited (shares) | (1) | |
Exercised (shares) | (180) | |
Outstanding at end of period (shares) | 1,184 | 1,253 |
Options vested and exercisable (shares) | 908 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period (USD per share) | $ 93.66 | |
Granted (USD per share) | 196.06 | |
Forfeited (USD per share) | 113.48 | |
Exercised (USD per share) | 69.67 | |
Outstanding at end of period (USD per share) | 106.82 | $ 93.66 |
Options vested and exercisable (USD per share) | $ 86.25 | |
Weighted-Average Remaining Contractual Term | ||
Outstanding | 6 years 3 months 18 days | 6 years 3 months 18 days |
Options vested and exercisable | 5 years 7 months 6 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 98.2 | $ 152.6 |
Options vested and exercisable | $ 92.6 |
SHARE-BASED AWARDS AND STOCK _7
SHARE-BASED AWARDS AND STOCK OPTIONS - Stock Options - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 43,325 | $ 34,983 | $ 80,490 | $ 62,805 |
Employee stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1,800 | $ 2,200 | 4,200 | 4,100 |
Aggregate intrinsic value of stock options exercised | 23,100 | $ 66,500 | ||
Total unrecognized compensation cost | $ 11,900 | $ 11,900 | ||
Weighted-average period of unrecognized compensation cost | 2 years 1 month 6 days | |||
Weighted average grant date fair value for each option granted (USD per share) | $ 65.99 | $ 54.85 | $ 65.99 | $ 54.85 |
SHARE-BASED AWARDS AND STOCK _8
SHARE-BASED AWARDS AND STOCK OPTIONS - Valuation Assumptions (Details) - Employee stock option | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate (as a percent) | 0.59% | 1.24% |
Expected volatility (as a percent) | 40.00% | 30.00% |
Dividend yield (as a percent) | 0.44% | 0.39% |
Expected term (years) | 5 years | 5 years |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 234,813 | 124,888 | 234,813 | 124,888 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Weighted-Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average number of shares outstanding (shares) | 294,914 | 299,140 | 295,665 | 299,264 |
Plus: Dilutive effect of stock options and other share-based awards (shares) | 1,225 | 1,106 | 1,236 | 1,277 |
Diluted weighted-average number of shares outstanding (shares) | 296,139 | 300,246 | 296,901 | 300,541 |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 1,799,549 | $ 1,945,868 | ||
Restricted cash included in prepaid expenses and other current assets | 140,175 | 143,903 | ||
Cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 1,939,724 | $ 2,089,771 | $ 1,825,625 | $ 1,678,273 |
SUPPLEMENTAL BALANCE SHEET IN_4
SUPPLEMENTAL BALANCE SHEET INFORMATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Employee termination benefits obligations | $ 17.4 | $ 17.4 | $ 48.4 | ||
Charges for employee termination benefitsd | 13.1 | $ 24.1 | 38.3 | $ 41.7 | |
Share-based compensation expense associated with equity awards held by terminated employees | 0.7 | $ 1.7 | 1.2 | $ 4.2 | |
Cumulative charges for employee termination benefits | 178.7 | 178.7 | |||
Cumulative charges for employee termination benefits related to share-based compensation expense | $ 25.2 | $ 25.2 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 27,332,370 | |||
Other comprehensive income (loss) | $ 39,666 | $ 80,634 | 29,566 | $ (148,575) |
Balance at end of period | 26,693,763 | 26,693,763 | ||
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (212,373) | (539,780) | (202,273) | (310,571) |
Balance at end of period | (172,707) | (459,146) | (172,707) | (459,146) |
Foreign Currency Translation Gains (Losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (141,070) | (438,350) | (114,227) | (241,899) |
Other comprehensive income (loss) | 34,188 | 77,217 | 7,345 | (119,234) |
Balance at end of period | (106,882) | (361,133) | (106,882) | (361,133) |
Unrealized Gains (Losses) on Hedging Activities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (72,575) | (102,198) | (81,543) | (69,319) |
Other comprehensive income (loss) | 7,027 | 3,295 | 15,995 | (29,584) |
Balance at end of period | (65,548) | (98,903) | (65,548) | (98,903) |
Other | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 1,272 | 768 | (6,503) | 647 |
Other comprehensive income (loss) | (1,549) | 122 | 6,226 | 243 |
Balance at end of period | $ (277) | $ 890 | $ (277) | $ 890 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity [Abstract] | ||||
Foreign currency translation adjustment, other comprehensive income (loss) | $ 2.7 | $ 5.4 | $ (3.2) | $ 1.3 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,137,437 | $ 1,671,952 | $ 4,127,444 | $ 3,575,550 |
Operating income (loss) | 362,558 | 107,574 | 637,817 | 351,553 |
Depreciation and amortization | 422,044 | 402,675 | 847,616 | 800,493 |
Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (22,605) | (16,350) | (44,307) | (35,729) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (191,824) | (173,726) | (386,933) | (324,316) |
Depreciation and amortization | 5,912 | 5,467 | 14,359 | 9,885 |
Acquisition-related costs | 76,800 | 80,700 | 167,000 | 150,400 |
Merchant Solutions | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,426,755 | 1,001,555 | 2,694,627 | 2,216,824 |
Operating income (loss) | 437,293 | 175,078 | 777,283 | 479,231 |
Depreciation and amortization | 248,503 | 236,840 | 499,099 | 469,862 |
Issuer Solutions | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 505,932 | 470,025 | 1,006,183 | 973,787 |
Operating income (loss) | 74,806 | 58,027 | 143,262 | 117,331 |
Depreciation and amortization | 145,691 | 136,254 | 290,300 | 272,991 |
Business and Consumer Solutions | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 227,355 | 216,722 | 470,941 | 420,668 |
Operating income (loss) | 42,283 | 48,195 | 104,205 | 79,307 |
Depreciation and amortization | $ 21,938 | $ 24,114 | $ 43,858 | $ 47,755 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Future Minimum Payments for Purchase Obligations (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 285,278 |
2022 | 237,176 |
2023 | 181,545 |
2024 | 123,801 |
2025 | 151,300 |
2026 | 184,376 |
2027 and thereafter | 754,025 |
Total future minimum payments | $ 1,917,501 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | Sep. 23, 2019USD ($) |
Frontline Case | Performance Guarantee | |
Loss Contingencies [Line Items] | |
Damages awarded | $ 135.2 |
Uncategorized Items - gpn-20210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |