Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 15, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001123360 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 54,617,835,258 | ||
Entity Common Stock, Shares Outstanding | 281,968,006 | ||
Documents Incorporated by Reference | Specifically identified portions of the registrant's proxy statement for the 2022 annual meeting of shareholders are incorporated by reference in Part III. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 34 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenues | $ 8,523,762 | $ 7,423,558 | $ 4,911,892 |
Operating expenses: | |||
Cost of service | 3,773,725 | 3,650,727 | 2,073,803 |
Selling, general and administrative | 3,391,161 | 2,878,878 | 2,046,672 |
Total costs and expenses | 7,164,886 | 6,529,605 | 4,120,475 |
Operating income | 1,358,876 | 893,953 | 791,417 |
Interest and other income | 19,320 | 43,551 | 31,413 |
Interest and other expense | (333,651) | (343,548) | (304,905) |
Total nonoperating income (expense) | (314,331) | (299,997) | (273,492) |
Income before income taxes and equity in income of equity method investments | 1,044,545 | 593,956 | 517,925 |
Income tax expense | 169,034 | 77,153 | 62,190 |
Income before equity in income of equity method investments | 875,511 | 516,803 | 455,735 |
Equity in income of equity method investments, net of tax | 112,353 | 88,297 | 13,541 |
Net income | 987,864 | 605,100 | 469,276 |
Net income attributable to noncontrolling interests | (22,404) | (20,580) | (38,663) |
Net income attributable to Global Payments | $ 965,460 | $ 584,520 | $ 430,613 |
Earnings per share attributable to Global Payments: | |||
Basic earnings per share (USD per share) | $ 3.30 | $ 1.95 | $ 2.17 |
Diluted earnings per share (USD per share) | $ 3.29 | $ 1.95 | $ 2.16 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 987,864 | $ 605,100 | $ 469,276 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (79,550) | 153,210 | 58,369 |
Income tax benefit related to foreign currency translation adjustments | 455 | 1,160 | 1,281 |
Net unrealized gains (losses) on hedging activities | 3,425 | (52,742) | (90,238) |
Reclassification of net unrealized losses on hedging activities to interest expense | 40,094 | 36,510 | 2,257 |
Income tax (expense) benefit related to hedging activities | (10,466) | 4,008 | 21,036 |
Other, net of tax | 3,760 | (7,150) | 4,174 |
Other comprehensive (loss) income | (42,282) | 134,996 | (3,121) |
Comprehensive income | 945,582 | 740,096 | 466,155 |
Comprehensive income attributable to noncontrolling interests | (12,123) | (35,223) | (35,938) |
Comprehensive income attributable to Global Payments | $ 933,459 | $ 704,873 | $ 430,217 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,979,308 | $ 1,945,868 |
Accounts receivable, net | 946,247 | 794,172 |
Settlement processing assets | 1,143,539 | 1,230,853 |
Prepaid expenses and other current assets | 641,891 | 621,467 |
Total current assets | 4,710,985 | 4,592,360 |
Goodwill | 24,813,274 | 23,871,451 |
Other intangible assets, net | 11,633,709 | 12,015,883 |
Property and equipment, net | 1,687,586 | 1,578,532 |
Deferred income taxes | 12,117 | 7,627 |
Other noncurrent assets | 2,422,042 | 2,135,692 |
Total assets | 45,279,713 | 44,201,545 |
Current liabilities: | ||
Settlement lines of credit | 484,202 | 358,698 |
Current portion of long-term debt | 78,505 | 827,357 |
Accounts payable and accrued liabilities | 2,542,256 | 2,061,384 |
Settlement processing obligations | 1,358,051 | 1,301,652 |
Total current liabilities | 4,463,014 | 4,549,091 |
Long-term debt | 11,414,809 | 8,466,407 |
Deferred income taxes | 2,793,427 | 2,948,390 |
Other noncurrent liabilities | 739,046 | 750,613 |
Total liabilities | 19,410,296 | 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 December 31, 2021 and 2020; 284,750,452 shares issued and outstanding at December 31, 2021 and 298,332,459 shares issued and outstanding at December 31, 2020 | 0 | 0 |
Paid-in capital | 22,880,261 | 24,963,769 |
Retained earnings | 2,982,122 | 2,570,874 |
Accumulated other comprehensive loss | (234,182) | (202,273) |
Total Global Payments shareholders’ equity | 25,628,201 | 27,332,370 |
Noncontrolling interests | 241,216 | 154,674 |
Total equity | 25,869,417 | 27,487,044 |
Total liabilities and equity | $ 45,279,713 | $ 44,201,545 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 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) | 284,750,452 | 298,332,459 |
Common stock outstanding (shares) | 284,750,452 | 298,332,459 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands, € in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 987,864 | $ 605,100 | $ 469,276 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 396,342 | 357,529 | 211,200 |
Amortization of acquired intangibles | 1,295,042 | 1,256,911 | 667,135 |
Amortization of capitalized contract costs | 93,328 | 78,147 | 66,086 |
Share-based compensation expense | 180,779 | 148,792 | 89,634 |
Provision for operating losses and bad debts | 90,208 | 126,712 | 100,188 |
Noncash lease expense | 107,775 | 98,592 | 52,612 |
Deferred income taxes | (189,050) | (166,224) | (108,309) |
Equity in income of equity method investments, net of tax | (112,353) | (88,297) | (13,541) |
Facilities exit charges | 51,349 | 0 | 0 |
Distribution received on investments | 36,914 | 7,738 | 0 |
Other, net | 10,810 | (21,403) | 12,971 |
Changes in operating assets and liabilities, net of the effects of business combinations: | |||
Accounts receivable | (165,543) | 55,986 | (115,528) |
Settlement processing assets and obligations, net | 128,584 | 125,852 | 213,701 |
Prepaid expenses and other assets | (264,009) | (270,965) | (159,056) |
Accounts payable and other liabilities | 132,785 | (320) | (95,091) |
Net cash provided by operating activities | 2,780,825 | 2,314,150 | 1,391,278 |
Cash flows from investing activities: | |||
Business combinations and other acquisitions, net of cash acquired | (1,811,432) | (160,801) | (644,622) |
Restricted cash from business combinations | 0 | 119,372 | 0 |
Capital expenditures | (493,216) | (436,236) | (307,868) |
Other, net | 10,822 | 39,323 | 35,404 |
Net cash used in investing activities | (2,293,826) | (438,342) | (917,086) |
Cash flows from financing activities: | |||
Net borrowings from (repayments of) settlement lines of credit | 149,528 | (133,282) | (236,473) |
Proceeds from long-term debt | 7,057,668 | 2,401,147 | 7,203,903 |
Repayments of long-term debt | (4,826,769) | (2,342,072) | (6,484,689) |
Payments of debt issuance costs | (21,320) | (8,075) | (43,599) |
Repurchases of common stock | (2,533,629) | (631,148) | (311,383) |
Proceeds from stock issued under share-based compensation plans | 49,545 | 66,142 | 24,514 |
Common stock repurchased - share-based compensation plans | (90,649) | (61,243) | (62,577) |
Distributions to noncontrolling interests | 0 | (26,199) | (31,632) |
Preacquisition dividends paid to former TSYS shareholders | 0 | 0 | (23,240) |
Dividends paid | (259,726) | (233,216) | (63,498) |
Purchase of subsidiary shares from noncontrolling interest | 0 | (578,196) | 0 |
Contributions from noncontrolling interests | 69,987 | 0 | 0 |
Net cash used in financing activities | (405,365) | (1,546,142) | (28,674) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (48,382) | 81,832 | 21,877 |
Increase in cash, cash equivalents and restricted cash | 33,252 | 411,498 | 467,395 |
Cash, cash equivalents and restricted cash, beginning of the period | 2,089,771 | 1,678,273 | 1,210,878 |
Cash, cash equivalents and restricted cash, end of the period | $ 2,123,023 | $ 2,089,771 | $ 1,678,273 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ 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, 2018 | 157,962 | |||||||||
Balance at beginning of period at Dec. 31, 2018 | $ 4,186,343 | $ 3,991,407 | $ 2,235,167 | $ 2,066,415 | $ (310,175) | $ 194,936 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||||||||
Net income | $ 469,276 | 430,613 | 430,613 | 38,663 | ||||||
Other comprehensive income (loss) | (3,121) | (396) | (2,725) | |||||||
Stock issued under share-based compensation plans (shares) | 991 | |||||||||
Stock issued under share-based compensation plans | 24,514 | 24,514 | 24,514 | |||||||
Common stock repurchased - share-based compensation plans (shares) | (308) | |||||||||
Common stock repurchased - share-based compensation plans | (63,333) | (63,333) | (63,333) | |||||||
Share-based compensation expense | 89,634 | 89,634 | 89,634 | |||||||
Issuance of common stock in connection with a business combination (shares) | 143,909 | |||||||||
Issuance of common stock in connection with a business combination | 23,771,389 | 23,771,389 | 23,771,389 | |||||||
Distributions to noncontrolling interests | $ (31,632) | (31,632) | ||||||||
Repurchase of common stock (shares) | (2,328) | (2,328) | ||||||||
Repurchases of common stock | $ (324,583) | (324,583) | (224,064) | (100,519) | ||||||
Cash dividends declared | (63,498) | (63,498) | (63,498) | |||||||
Balance at end of period (shares) at Dec. 31, 2019 | 300,226 | |||||||||
Balance at end 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 | 605,100 | 584,520 | 584,520 | 20,580 | ||||||
Other comprehensive income (loss) | 134,996 | 120,353 | 120,353 | 14,643 | ||||||
Stock issued under share-based compensation plans (shares) | 1,726 | |||||||||
Stock issued under share-based compensation plans | 66,142 | 66,142 | 66,142 | |||||||
Common stock repurchased - share-based compensation plans (shares) | (316) | |||||||||
Common stock repurchased - share-based compensation plans | (60,849) | (60,849) | (60,849) | |||||||
Share-based compensation expense | 148,792 | 148,792 | 148,792 | |||||||
Noncontrolling interest of acquired business | 14,812 | 14,812 | ||||||||
Purchase of subsidiary shares from noncontrolling interest | (578,196) | (509,792) | (497,737) | (12,055) | (68,404) | |||||
Distributions to noncontrolling interests | $ (26,199) | (26,199) | ||||||||
Repurchase of common stock (shares) | (3,304) | (3,304) | ||||||||
Repurchases of common stock | $ (633,948) | (633,948) | (525,886) | (108,062) | ||||||
Cash dividends declared | (233,216) | (233,216) | (233,216) | |||||||
Balance at end of period (shares) at Dec. 31, 2020 | 298,332 | |||||||||
Balance at end 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 | 987,864 | 965,460 | 965,460 | 22,404 | ||||||
Other comprehensive income (loss) | (42,282) | (32,001) | (32,001) | (10,281) | ||||||
Stock issued under share-based compensation plans (shares) | 2,085 | |||||||||
Stock issued under share-based compensation plans | 49,545 | 49,545 | 49,545 | |||||||
Common stock repurchased - share-based compensation plans (shares) | (498) | |||||||||
Common stock repurchased - share-based compensation plans | (90,165) | (90,165) | (90,165) | |||||||
Share-based compensation expense | 180,779 | 180,779 | 180,779 | |||||||
Contributions from noncontrolling interests | 69,987 | 69,987 | ||||||||
Change in ownership attributable to a noncontrolling interest | $ 0 | (4,432) | (4,524) | 92 | 4,432 | |||||
Repurchase of common stock (shares) | (15,169) | (15,169) | ||||||||
Repurchases of common stock | $ (2,513,629) | (2,513,629) | (2,219,143) | (294,486) | ||||||
Cash dividends declared | (259,726) | (259,726) | (259,726) | |||||||
Balance at end of period (shares) at Dec. 31, 2021 | 284,750 | |||||||||
Balance at end of period at Dec. 31, 2021 | $ 25,869,417 | $ 25,628,201 | $ 22,880,261 | $ 2,982,122 | $ (234,182) | $ 241,216 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (USD per share) | $ 0.89 | $ 0.78 | $ 0.225 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 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 16—Segment Information." Global Payments Inc. and its consolidated subsidiaries are referred to herein collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise. On September 18, 2019, we consummated our merger with Total System Services, Inc. ("TSYS") (the "Merger") for total purchase consideration of $24.5 billion, primarily funded with shares of our common stock. Prior to the Merger, TSYS was a leading global payments provider, offering seamless, secure and innovative solutions to issuers, merchants and consumers. See "Note 2—Acquisitions" for further discussion of the Merger and other acquisitions. These consolidated financial statements include our accounts and those of our majority-owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. Investments in entities that we do not control are accounted for using the equity or cost method, depending upon our ability to exercise significant influence over operating and financial policies. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). COVID-19 Update — Since early 2020, the global economy has been 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, scope 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 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") 2020-04 — In March 2020, the Financial Accounting Standards Board ("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 Accounting Standards Codification ("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, related to borrowings under the term loan credit agreement ("Term Loan Credit Agreement") and revolving credit agreement ("Unsecured Revolving Credit Agreement"), bears interest at a variable rate based on LIBOR. Borrowings under the Term Loan Credit Agreement were made in U.S. dollars and borrowings under the Unsecured Revolving Credit Agreement are available to be made in U.S. dollars, euros, sterling, Canadian dollars and, subject to certain conditions, certain other currencies at our option. In connection with the sunset of certain LIBOR reference rates occurring at the end of 2021, we amended the Unsecured Revolving Credit Agreement in December 2021 to replace LIBOR as administered by the ICE Benchmark Administration with the Sterling Overnight Index Average Reference Rate and the Euro Interbank Offered Rate for any extension of credit denominated in sterling or euros, respectively. We elected to apply the expedients under ASU 2020-04 to the amendment, the application of which did not result in any effect on our consolidated financial statements. Further amendments may be necessary to address the LIBOR reference rates applicable to borrowings made in U.S. dollars. Furthermore, we have entered into hedging instruments to manage our exposure to fluctuations in the USD LIBOR benchmark interest rate, which will mature as of December 31, 2022. We are still evaluating the effect of the discontinuance of LIBOR on our remaining outstanding debt and hedging instruments and the related effects of ASU 2020-04 on our consolidated financial statements. ASU 2019-12 — In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ," which is intended to enhance and simplify various aspects of the accounting for income taxes. The amendments in this update remove certain exceptions to the general principles in ASC Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and amends existing guidance 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. ASU 2018-15 — In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (A Consensus of the FASB Emerging Issues Task Force)." ASU 2018-15 provides additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract. The new guidance amended the definition of a hosting arrangement and requires a customer in a hosting arrangement that is a service contract to capitalize certain implementation costs following the internal-use software capitalization criteria within ASC Subtopic 350-40. We adopted ASU 2018-15 on January 1, 2020, applying the guidance prospectively to all implementation costs incurred on or after the date of adoption. The adoption of this standard did not have a material effect on our consolidated financial statements. We have historically capitalized implementation costs associated with cloud computing arrangements that are service contracts following the guidance in Subtopic 350-40 and continue to do so pursuant to the clarifications provided in the new guidance. We amortize capitalized implementation costs to expense on a straight-line basis over the term of the applicable hosting arrangement. Our cloud computing arrangements involve services we use to support certain internal corporate functions as well as technology associated with revenue-generating activities. As of December 31, 2021 and 2020, capitalized implementation costs, net of accumulated amortization, were $72.4 million and $16.2 million, respectively, and are presented within other noncurrent assets in the consolidated balance sheets. Amortization expense for the years ended December 31, 2021 and 2020 was $3.0 million and $3.1 million, respectively, and is presented in the same line item in the consolidated statements of income as the expense for the associated cloud services arrangement. ASU 2016-13 — We adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments " on January 1, 2020 using the modified retrospective transition method. The adoption of this standard resulted in a cumulative-effect adjustment to decrease retained earnings by $5.4 million, net of tax. The amendments in this update changed how we measure and recognize credit impairment for certain financial instruments measured at amortized cost. Under the current expected credit losses model required by ASU 2016-13, we recognize at asset inception and each subsequent reporting date an estimate of credit losses expected to occur over the remaining life of each pool of financial assets with similar risk characteristics. ASU 2016-02 — ASU 2016-02 “Leases” requires recognition of assets and liabilities for the rights and obligations created by leases and new disclosures about leases. We adopted ASU 2016-02, as well as other related clarifications and interpretive guidance issued by the FASB, on January 1, 2019 using the modified retrospective transition method. Under this transition method, we did not recast the prior period financial statements presented. We elected the transition package of three practical expedients, which among other things, allowed for the carryforward of historical lease classifications. We made an accounting policy election to not recognize assets or liabilities for leases with a term of less than 12 months and to account for all components in a lease arrangement as a single combined lease component for all of our then existing asset classes. In connection with the Merger, we acquired right-of-use assets that represent an additional asset class for computer equipment, for which we account for lease and nonlease components separately. The adoption of ASU 2016-02 resulted in the measurement and recognition of lease liabilities in the amount of $274.0 million and right-of-use assets in the amount of $236.0 million as of January 1, 2019. Lease liabilities were measured as the present value of remaining lease payments, and the corresponding right-of-use assets were measured at an amount equal to the lease liabilities adjusted by the amounts of certain assets and liabilities, such as prepaid rent and deferred lease obligations, that we previously recognized on the balance sheet prior to the initial application of ASU 2016-02. To calculate the present value of remaining lease payments, we elected to use an incremental borrowing rate based on the remaining lease term at transition. Adoption did not have a material effect on any line items in our consolidated statement of income or on our cash flows from operating activities, investing activities or financing activities included in our consolidated statement of cash flows. Revenue Recognition — At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good or service that is distinct. In accordance with ASC Topic 606, Revenues from Contracts with Customers ("ASC 606"), we recognize revenue when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these services. Merchant Solutions. Our customers in the Merchant Solutions segment contract with us for payment services, which we provide in exchange for consideration for completed transactions. Our payment solutions are similar around the world in that we enable our customers to accept card, check and digital-based payments. Our comprehensive offerings include, but are not limited to, authorization, settlement and funding services, customer support, chargeback resolution, payment security services, consolidated billing and reporting. In addition, we may sell or lease point-of-sale terminals or other equipment to customers. For our payment services, the nature of our promise to the customer is that we stand ready to process transactions the customer requests on a daily basis over the contract term. Since the timing and quantity of transactions to be processed by us is not determinable, we view payment services to comprise an obligation to stand ready to process as many transactions as the customer requests. Under a stand-ready obligation, the evaluation of the nature of our performance obligation is focused on each time increment rather than the underlying activities. Therefore, we view payment services to comprise a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. Accordingly, the promise to stand ready is accounted for as a single series performance obligation. In order to provide our payment services, we route and clear each transaction through the applicable payment network. We obtain authorization for the transaction and request funds settlement from the card issuing financial institution through the payment network. When third parties are involved in the transfer of goods or services to our customer, we consider the nature of each specific promised good or service and apply judgment to determine whether we control the good or service before it is transferred to the customer or whether we are acting as an agent of the third party. To determine whether or not we control the good or service before it is transferred to the customer, we assess indicators including which party is primarily responsible for fulfillment and which party has discretion in determining pricing for the good or service, as well as other considerations. Based on our assessment of these indicators, we have concluded that our promise to our customer to provide our payment services is distinct from the services provided by the card issuing financial institutions and payment networks in connection with payment transactions. We do not have the ability to direct the use of and obtain substantially all of the benefits of the services provided by the card issuing financial institutions and payment networks before those services are transferred to our customer, and on that basis, we do not control those services prior to being transferred to our customer. As a result, we present our revenues net of the interchange fees retained by the card issuing financial institutions and the fees charged by the payment networks. The majority of our payment services are priced as a percentage of transaction value or a specified fee per transaction, depending on the card type. We also charge other per occurrence fees based on specific services that may be unrelated to the number of transactions or transaction value. Given the nature of the promise and the underlying fees based on unknown quantities or outcomes of services to be performed over the contract term, the total consideration is determined to be variable consideration. The variable consideration for our payment service is usage-based and, therefore, it specifically relates to our efforts to satisfy our payment services performance obligation. The variability is satisfied each day the service is provided to the customer. We directly ascribe variable fees to the distinct day of service to which it relates, and we consider the services performed each day in order to ascribe the appropriate amount of total fees to that day. Therefore, we measure revenues for our payment service on a daily basis based on the services that are performed on that day. Certain of our technology-enabled customer arrangements contain multiple promises, such as payment services, perpetual software licenses, software-as-a-service ("SaaS"), maintenance, installation services, training and equipment, each of which is evaluated to determine whether it represents a separate performance obligation. SaaS arrangements are generally offered on a subscription basis, providing the customers with access to the SaaS platform along with general support and maintenance services. Because these promised services within our SaaS arrangements are delivered concurrently over the contract term, we account for these promises as if they are a single performance obligation that includes a series of distinct services with the same pattern of transfer to the customer. In addition, certain implementation services are not considered distinct from the SaaS and are recognized over the expected period of benefit. Once we determine the performance obligations and the transaction price, including an estimate of any variable consideration, we then allocate the transaction price to each performance obligation in the contract using a relative standalone selling price method. We determine standalone selling price based on the price at which the good or service is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price by considering all reasonably available information, including market conditions, trends or other company- or customer-specific factors. Substantially all of the performance obligations within our SaaS arrangements described above are satisfied over time. We satisfy the combined SaaS performance obligation by standing ready to provide access to the SaaS. Consideration for SaaS arrangements may consist of fixed or usage-based fees. Revenue is recognized over the period for which the services are provided or by directly ascribing any variable fees to the distinct day of service based on the services that are performed on that day. The performance obligations associated with equipment sales, perpetual software licenses and certain professional services are generally satisfied at a point in time when they are transferred to the customer. For certain other professional services that represent separate performance obligations, we generally use the input method and recognize revenue based on the number of hours incurred or services performed to date in relation to the total services expected to be required to satisfy the performance obligation. Issuer Solutions. Issuer Solutions segment revenues are derived from long-term contracts with financial institutions and other financial service providers. Issuer Solutions customer contracts typically include an obligation to provide processing services to financial institutions and other financial services providers. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements generated and/or mailed, managed services, cards embossed and mailed, and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual minimums, penalties for early termination, and service level agreements that may affect contractual fees if specific service levels are not achieved. We have determined that these processing services represent a stand-ready obligation comprising a series of distinct days of services that are substantially the same and have the same pattern of transfer to the customer. Issuer Solutions contracts may also include additional performance obligations relating to loyalty redemption services and other professional services. Similar to processing services, we have determined that loyalty redemption services represent a stand-ready obligation comprising a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. To the extent a contract includes multiple promised services, we must apply judgment to determine whether promised services are capable of being distinct and are distinct in the context of the contract. If these criteria for being distinct are not met, the promised services are combined and accounted for as a single performance obligation. The performance obligations to provide processing services and loyalty redemption services include variable consideration. The variable consideration for our services is usage-based and, therefore, it specifically relates to our efforts to satisfy our services performance obligation. The variability is satisfied each day the service is provided to the customer. We directly ascribe variable fees to the distinct day of service to which it relates, and we consider the services performed each day in order to ascribe the appropriate amount of total fees to that day. Therefore, we measure revenues for our services on a daily basis based on the services that are performed on that day. Professional services performance obligations are satisfied over time. For professional services, we recognize revenue based on the labor hours incurred for time and materials projects or on a straight-line basis for fixed-fee projects. In some cases, we pay certain of our customers a signing incentive at contract inception or renewal. Consideration paid to customers is accounted for as a reduction of the transaction price and recognized as a reduction in revenues as the related services are provided to the customer, typically over the contract term. The deferred portion of consideration paid to customers is classified within other assets in our consolidated balance sheets. Business and Consumer Solutions. Business and Consumer Solutions arrangements include a stand-ready performance obligation to provide account access and facilitate purchase transactions. Revenues principally consist of fees collected from cardholders and fees generated by cardholder activity in connection with the programs that we manage. Customers are typically charged a fee for each purchase transaction made using their cards, unless the customer is on a monthly or annual service plan, in which case the customer is instead charged a monthly or annual subscription fee, as applicable. Customers are also charged a monthly maintenance fee after a specified period of inactivity. We also charge fees associated with additional services offered in connection with our accounts, including the use of overdraft features, a variety of bill payment options, card replacement, foreign exchange and card-to-card transfers of funds initiated through our call centers. We have determined that we have a right to consideration from a customer in an amount that corresponds directly with our performance completed to date. As a result, we recognize revenue in the amount to which we have a right to invoice. Revenues are recognized net of fees charged by the payment networks for services they provide in processing transactions routed through them. Additionally, certain of our Business and Consumer Solutions customer arrangements provide business-to-business ("B2B") payment services, consisting of a stand-ready obligation to process financial transactions for which revenue is recognized on a daily basis based on the services that are performed on that day. Other customer contracts include subscription based SaaS arrangements that automate key procurement processes and enable virtual cards and integrated payments options, for which revenue is recognized over time on a ratable basis over the contract term beginning on the date that the services are made available to the customer. Cash, cash equivalents and restricted cash — Cash and cash equivalents include cash on hand and all liquid investments with a maturity of three months or less when purchased. We consider certain portions of our cash and cash equivalents to be unrestricted but not available for general purposes. The amount of cash that we consider to be available for general purposes, $894.6 million and $1,100.9 million as of December 31, 2021 and 2020, respectively, does not include the following: (i) settlement-related cash balances, (ii) funds held as collateral for merchant losses ("Merchant Reserves") and (iii) funds held for customers. Settlement-related cash balances represent funds that we hold when the incoming amount from the card networks precedes the funding obligation to the merchant. Settlement-related cash balances are not restricted in their use; however, these funds are generally paid out in satisfaction of a processing obligation the following day. Merchant Reserves serve as collateral to minimize contingent liabilities associated with any losses that may occur under the merchant agreement. We record a corresponding liability in settlement processing assets and settlement processing obligations in our consolidated balance sheet. While this cash is not restricted in its use, we believe that designating this cash as Merchant Reserves strengthens our fiduciary standing with financial institutions that sponsor us. Funds held for customers, which are not restricted in their use, include amounts collected before the corresponding obligation is due to be settled to or at the direction of our customers. Restricted cash includes amounts that cannot be withdrawn or used for general operating activities under legal or regulatory restrictions. Restricted cash consists of amounts deposited by customers for prepaid card transactions that are subject to local regulatory restrictions requiring appropriate segregation and restriction in their use. Restricted cash is included in prepaid expenses and other current assets in the consolidated balance sheet with a corresponding liability in accounts payable and accrued liabilities. A reconciliation of the amounts of cash and cash equivalents and restricted cash in the consolidated balance sheets to the amount in the consolidated statements of cash flows is as follows: December 31, 2021 2020 (in thousands) Cash and cash equivalents $ 1,979,308 $ 1,945,868 Restricted cash 143,715 143,903 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 2,123,023 $ 2,089,771 Accounts receivable, contract assets and contract liabilities — A contract with a customer creates legal rights and obligations. As we perform under customer contracts, our right to consideration that is unconditional is considered to be accounts receivable. If our right to consideration for such performance is contingent upon a future event or satisfaction of additional performance obligations, the amount of revenues we have recognized in excess of the amount we have billed to the customer is recognized as a contract asset. Contract liabilities represent consideration received from customers in excess of revenues recognized. Contract assets and liabilities are presented net at the individual contract level in the consolidated balance sheet and are classified as current or noncurrent based on the nature of the underlying contractual rights and obligations. Allowance for credit losses — We are exposed to credit losses on accounts receivable balances. We utilize a combination of aging and loss-rate methods to develop an estimate of current expected credit losses, depending on the nature and risk profile of the underlying asset pool. A broad range of information is considered in the estimation process, including historical loss information adjusted for current conditions, the effects of COVID-19 on our customers and expectations of future trends. The estimation process also includes consideration of qualitative and quantitative risk factors associated with the age of asset balances, expected timing of payment, contract terms and conditions, changes in specific customer risk profiles or mix of customers, geographic risk, industry or economic trends and relevant environmental factors. Accounts receivable is presented net of an allowance for credit losses of $17.4 million and $20.6 million as of December 31, 2021 and 2020, respectively. The measurement of the allowance for credit losses is recognized through credit loss expense and is included as a component of selling, general and administrative expense in our consolidated statements of income. We recognized credit loss expense of $12.8 million and $23.0 million for the years ended December 31, 2021 and 2020, respectively. Write-offs are recorded in the period in which the asset is deemed to be uncollectible. Recoveries are recognized when received as a direct credit to the credit loss expense in the consolidated statements of income. Prior to the adoption of ASU 2016-13, credit losses on accounts receivable balances were recognized when an occurrence was deemed to be probable. Revenues are recognized net of estimated billing adjustments. Adjustments to customer invoices are charged against the allowance for billing adjustments. Contract costs — We capitalize costs to obtain contracts with customers, including employee sales commissions and fees to business partners. At contract inception, we capitalize such costs that we expect to recover and that would not have been incurred if the contract had not been obtained. In certain instances in which costs related to obtaining customers are incurred after the inception of the customer contract, such costs are capitalized as the corresponding liability is recognized. We also capitalize certain costs incurred to fulfill our contracts with customers that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligation under the contract and (iii) are expected to be recovered through revenues generated under the contract. Capitalized costs to obtain and to fulfill contracts are included in other noncurrent assets. Contract costs are amortized to operating expense in our consolidated statements of income on a systematic basis consistent with the transfer to the customer of the goods or services to which the asset relates. Amortization of capitalized costs to obtain customer contracts is included in selling, general and administrative expenses in the consolidated statements of income, while amortization of capitalized costs to fulfill customer contracts is included in cost of services. We utilize a straight-line or proportional amortization method depending upon which method best depicts the pattern of transfer of the goods or services to the customer. We amortize these assets over the expected period of benefit, which, based on the factors noted above, is typically three Up-front distributor and partner payments — We capitalize certain up-front contractual payments to third-party distributors and partners and recognize the capitalized amount as expense ratably over the period of benefit, which is generally the contract period. If the contract requires the distributor or partner to perform specific acts and no other conditions exist for the distributor or partner to earn or retain the up-front payment, then we recognize the capitalized amount as an expense when th |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Zego 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. 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: Provisional Amounts at Acquisition Date Measurement-Period Adjustments Provisional Amounts at December 31, 2021 (in thousands) Cash and cash equivalents $ 67,374 $ — $ 67,374 Accounts receivable 1,033 (16) 1,017 Identifiable intangible assets 410,443 62,557 473,000 Property and equipment 3,634 (3,059) 575 Other assets 9,141 (90) 9,051 Accounts payable and accrued liabilities (65,753) (5,253) (71,006) Deferred income tax liabilities (10,709) (3,193) (13,902) Other liabilities (8,268) 258 (8,010) Total identifiable net assets 406,895 51,204 458,099 Goodwill 525,929 (50,782) 475,147 Total purchase consideration $ 932,824 $ 422 $ 933,246 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. As of December 31, 2021, we considered these amounts to be provisional because we were still in the process of gathering and reviewing information to support the valuation of assets acquired and liabilities assumed and to evaluate the differences in the bases of assets and liabilities for financial reporting and tax purposes. We made measurement-period adjustments, as shown in the table above, that decreased the amount of provisional goodwill by $50.8 million. The effects of the measurement-period adjustments on our consolidated statement of income for the year ended December 31, 2021 were not material. Goodwill of $475.1 million arising from the acquisition, included in the Merchant Solutions segment, is attributable to expected growth opportunities, potential synergies from combining our existing businesses and an assembled workforce. We expect that substantially all of the goodwill will be deductible for income tax purposes. The following table reflects the provisional estimated fair values of the identified intangible assets of Zego and the respective weighted-average estimated amortization periods: Estimated Fair Value Weighted-Average Estimated Amortization Periods (in thousands) (years) Customer-related intangible assets $ 208,000 13 Contract-based intangible assets 119,000 20 Acquired technologies 124,000 6 Trademarks and trade names 22,000 15 Total estimated identifiable intangible assets $ 473,000 14 Other business acquisitions During the year ended December 31, 2021, we completed other business acquisitions that were insignificant, individually and in the aggregate, to the consolidated financial statements for an aggregate purchase price of $963 million. The assets acquired and liabilities assumed were recorded based on the provisional estimated fair values, including intangible assets of $438 million and goodwill of $514 million. See "Note 5 — Goodwill and Intangible Assets" for the aggregate allocation of goodwill to the respective segments. The operating results of each acquisition have been included in the consolidated financial statements since the respective acquisition dates. Total System Services, Inc. On September 18, 2019, we acquired all of the outstanding common stock of TSYS. Prior to the Merger, TSYS was a leading global payments provider, offering seamless, secure and innovative solutions to issuers, merchants and consumers. Holders of TSYS common stock received 0.8101 shares of Global Payments common stock for each share of TSYS common stock they owned at the effective time of the Merger (the "Exchange Ratio"). In addition, certain TSYS equity awards held by employees who were not executive officers, pursuant to their terms, vested automatically at closing ("Single-Trigger Awards") and were converted into the right to receive a number of shares of Global Payments common stock determined based on the Exchange Ratio. Also, pursuant to the Merger Agreement, we granted equity awards for approximately 2.2 million shares of Global Payments common stock to certain TSYS equity awards holders ("Replacement Awards"). Each such Replacement Award is subject to the same terms and conditions (including vesting and exercisability or payment terms) as applied to the corresponding TSYS equity award. We apportioned the fair value of the Replacement Awards between purchase consideration and amounts to be recognized in periods following the Merger as share-based compensation expense over the requisite service period of the Replacement Awards. The purchase consideration transferred to TSYS shareholders was valued at $23.8 billion. Total purchase consideration also included the amount of borrowings outstanding under TSYS' unsecured revolving credit facility together with accrued interest and fees that we were required to repay upon consummation of the Merger. The fair value of total purchase consideration was determined as follows (in thousands, except per share data): Shares of TSYS common stock issued and outstanding (including Single-Trigger Awards) 177,643 Exchange Ratio 0.8101 Shares of Global Payments common stock issued to TSYS shareholders 143,909 Price per share of Global Payments common stock $ 163.74 Fair value of common stock issued to TSYS shareholders (1) 23,563,568 Value of Replacement Awards attributable to purchase consideration 207,821 Cash paid to TSYS shareholders in lieu of fractional shares 1,352 Total purchase consideration transferred to TSYS shareholders 23,772,741 Repayment of TSYS' unsecured revolving credit facility (including accrued interest and fees) 702,212 Total purchase consideration $ 24,474,953 (1) Fair value of common stock issued to TSYS shareholders does not equal the product of shares of Global Payments common stock issued to TSYS shareholders and price per share of Global Payments common stock as presented in the table above due to the rounding of the number of shares in thousands. The estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, were as follows (in thousands): Provisional Amounts at December 31, 2019 Measurement- Period Adjustments Final (in thousands) Cash and cash equivalents $ 446,009 $ — $ 446,009 Accounts receivable 442,848 (2,660) 440,188 Identified intangible assets 10,980,000 978 10,980,978 Property and equipment 644,084 (978) 643,106 Other assets 1,474,825 (2,969) 1,471,856 Accounts payable and accrued liabilities (614,060) (11,899) (625,959) Debt (3,295,342) 4,787 (3,290,555) Deferred income tax liabilities (2,687,849) 52,598 (2,635,251) Other liabilities (314,415) (173) (314,588) Total identifiable net assets 7,076,100 39,684 7,115,784 Goodwill 17,398,853 (39,684) 17,359,169 Total purchase consideration $ 24,474,953 $ — $ 24,474,953 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. During the year ended December 31, 2020, we made measurement-period adjustments, as shown in the table above, that decreased the amount of provisional goodwill by $39.7 million. The decrease in deferred income tax liabilities for the year ended December 31, 2020 primarily related to a refined analysis of the outside bases of partnerships. The effects of the measurement-period adjustments on our consolidated statement of income for the year ended December 31, 2020 were not material. As of December 31, 2020, goodwill arising from the acquisition of $17.4 billion was included in our reportable segments as follows: $7.1 billion in the Merchant Solutions segment, $7.9 billion in the Issuer Solutions segment and $2.4 billion in the Business and Consumer Solutions segment. Goodwill was attributable to expected growth opportunities, an assembled workforce and potential synergies from combining the acquired business into our existing business. Substantially all of the goodwill from this acquisition is not deductible for income tax purposes. The following table reflects the estimated fair values of the identified intangible assets of TSYS and the respective weighted-average estimated amortization periods: Estimated Fair Values Weighted-Average Estimated Amortization Periods (in thousands) (years) Customer-related intangible assets $ 6,420,000 15 Contract-based intangible assets 1,800,000 18 Acquired technologies 1,810,000 7 Trademarks and trade names 950,000 11 Total estimated identified intangible assets $ 10,980,000 13 For the year ended December 31, 2020, the acquired operations of TSYS contributed $4,205.2 million to our consolidated revenues and $538.0 million to our consolidated operating income. From the acquisition date through December 31, 2019, the acquired operations of TSYS contributed $1,215.0 million to our consolidated revenues and $78.7 million to operating income. Transaction costs directly related to the Merger were $68.9 million for the year ended December 31, 2019. The following unaudited pro forma information shows the results of our operations for the year ended December 31, 2019 as if the Merger had occurred on January 1, 2018. The unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of what would have occurred if the Merger had occurred as of that date. The unaudited pro forma information is also not intended to be a projection of future results due to the integration of the acquired operations of TSYS. The unaudited pro forma information reflects the effects of applying our accounting policies and certain pro forma adjustments to the combined historical financial information of Global Payments and TSYS. The pro forma adjustments include: • incremental amortization expense associated with identified intangible assets; • a reduction of revenues and operating expenses associated with fair value adjustments made to acquired assets and assumed liabilities, such as contract cost assets and contract liabilities; • a reduction of interest expense resulting from financing of the Merger, the repayment of TSYS' secured revolving credit facility and fair value adjustments applied to TSYS debt that we assumed; and • the income tax effects of the pro forma adjustments. Year Ended Actual Pro Forma (in thousands) Total revenues $ 4,911,892 $ 7,854,282 Net income attributable to Global Payments $ 430,613 $ 711,658 Valuation of Identified Intangible Assets |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 Merchant Solutions Issuer Solutions Business and Consumer Solutions Intersegment Revenues Total (in thousands) Americas $ 4,735,505 $ 1,559,177 $ 872,254 $ (69,011) $ 7,097,925 Europe 684,760 481,596 14,000 — 1,180,356 Asia Pacific 245,292 25,198 189 (25,198) 245,481 $ 5,665,557 $ 2,065,971 $ 886,443 $ (94,209) $ 8,523,762 Year Ended December 31, 2020 Merchant Solutions Issuer Solutions Business and Consumer Solutions Intersegment Revenues Total (in thousands) Americas $ 3,948,642 $ 1,525,122 $ 825,564 $ (65,991) $ 6,233,337 Europe 539,839 446,587 3,941 — 990,367 Asia Pacific 199,854 9,726 — (9,726) 199,854 $ 4,688,335 $ 1,981,435 $ 829,505 $ (75,717) $ 7,423,558 Year Ended December 31, 2019 Merchant Solutions Issuer Solutions Business and Consumer Solutions Intersegment Revenues Total (in thousands) Americas $ 3,240,233 $ 458,289 $ 227,440 $ (18,782) $ 3,907,180 Europe 614,747 146,365 — — 761,112 Asia Pacific 243,600 — — — 243,600 $ 4,098,580 $ 604,654 $ 227,440 $ (18,782) $ 4,911,892 The following table presents a disaggregation of our Merchant Solutions segment revenues by distribution channel for the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 (in thousands) Relationship-led $ 3,031,873 $ 2,600,440 $ 2,218,559 Technology-enabled 2,633,684 2,087,895 1,880,021 $ 5,665,557 $ 4,688,335 $ 4,098,580 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 years ended December 31, 2021, 2020, and 2019, substantially all of our revenues were recognized over time. Supplemental balance sheet information related to contracts from customers as of December 31, 2021 and 2020 was as follows: Balance Sheet Location December 31, 2021 December 31, 2020 (in thousands) Assets: Capitalized costs to obtain customer contracts, net Other noncurrent assets $ 291,914 $ 253,780 Capitalized costs to fulfill customer contracts, net Other noncurrent assets 113,366 81,371 Liabilities: Contract liabilities, net (current) Accounts payable and accrued liabilities 227,783 217,938 Contract liabilities, net (noncurrent) Other noncurrent liabilities 44,502 52,944 Net contract assets were not material at December 31, 2021 or December 31, 2020. Revenue recognized for the years ended December 31, 2021 and 2020 from contract liability balances at the beginning of each period was $207.1 million and $182.3 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 December 31, 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, 2022 $ 977,500 2023 803,671 2024 547,963 2025 429,303 2026 333,970 2027 and thereafter 519,539 Total $ 3,611,946 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT As of December 31, 2021 and 2020, property and equipment consisted of the following: Range of Depreciable Lives 2021 2020 (Years) (in thousands) Software 5-10 $ 1,309,160 $ 1,144,230 Equipment 3-20 778,533 679,686 Buildings 40 195,088 208,264 Leasehold improvements 5-15 132,529 131,790 Furniture and fixtures 5-10 78,364 63,542 Land 12,126 13,751 2,505,800 2,241,263 Less accumulated depreciation and amortization (1,196,623) (900,438) Work-in-progress 378,409 237,707 $ 1,687,586 $ 1,578,532 As a result of actions taken during the fourth quarter of 2021 to reduce our facilities footprint in certain markets around the world given the success of remote work and flexible arrangements implemented during the COVID-19 pandemic, we recognized charges of $9.2 million in selling, general and administrative expenses in our consolidated statement of income, primarily related to certain leasehold improvements, furniture and fixtures and equipment to reduce the carrying amount of each asset group to the estimated fair value. We continue to evaluate our physical footprint and additional charges may be incurred as these facilities exit activities continue in 2022. During the fourth quarter of 2019, we wrote-off capitalized software assets of $31.1 million related to legacy Global Payments technology that will no longer be utilized for the combined company. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS As of December 31, 2021 and 2020, goodwill and other intangible assets consisted of the following: 2021 2020 (in thousands) Goodwill $ 24,813,274 $ 23,871,451 Other intangible assets: Customer-related intangible assets $ 9,694,083 $ 9,275,093 Acquired technologies 2,962,154 2,795,991 Contract-based intangible assets 2,258,676 1,981,260 Trademarks and trade names 1,271,302 1,239,925 16,186,215 15,292,269 Less accumulated amortization: Customer-related intangible assets 2,587,586 1,914,214 Acquired technologies 1,367,513 960,281 Contract-based intangible assets 180,975 120,631 Trademarks and trade names 416,432 281,260 4,552,506 3,276,386 $ 11,633,709 $ 12,015,883 On December 31, 2019, we acquired a merchant portfolio from Desjardins Group, a cooperative financial group in Canada. We accounted for the acquisition as an asset purchase and recognized customer-related intangible assets of $307.9 million in the consolidated balance sheet at the acquisition date. The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the years ended December 31, 2021, 2020 and 2019: Merchant Solutions Issuer Solutions Business and Consumer Solutions Total (in thousands) Balance at December 31, 2018 $ 6,309,526 $ 31,829 $ — $ 6,341,355 Goodwill acquired 7,095,167 7,945,029 2,358,657 17,398,853 Effect of foreign currency translation 10,030 8,873 — 18,903 Measurement-period adjustments 629 — — 629 Balance at December 31, 2019 13,415,352 7,985,731 2,358,657 23,759,740 Goodwill acquired 80,152 — — 80,152 Effect of foreign currency translation 54,548 14,182 — 68,730 Measurement-period adjustments (1,362) (42,297) 6,488 (37,171) Balance at December 31, 2020 13,548,690 7,957,616 2,365,145 23,871,451 Goodwill acquired 557,044 — 431,797 988,841 Effect of foreign currency translation (36,192) (3,163) (1,663) (41,018) Measurement-period adjustments (5,860) — (140) (6,000) Balance at December 31, 2021 $ 14,063,682 $ 7,954,453 $ 2,795,139 $ 24,813,274 There were no accumulated impairment losses for goodwill at any balance sheet date reflected in the table above. Customer-related intangible assets, acquired technologies, contract-based intangible assets, and trademarks and trade names acquired during the year ended December 31, 2021 had weighted-average amortization periods of 11.9 years, 6.0 years, 18.5 years, and 15.0 years, respectively. Customer-related intangible assets, acquired technologies and contract-based intangible assets acquired during the year ended December 31, 2020 had weighted-average amortization periods of 8.9 years, 5.0 years, and 9.8 years, respectively. Customer-related intangible assets, acquired technologies, contract-based intangible assets and trademarks and trade names acquired during the year ended December 31, 2019 had weighted-average amortization periods of 15.1 years, 6.9 years, 17.7 years and 10.7 years, respectively. Amortization expense of acquired intangibles was $1,295.0 million for the year ended December 31, 2021, $1,256.9 million for the year ended December 31, 2020 and $667.1 million for the year ended December 31, 2019. The estimated amortization expense of acquired intangibles as of December 31, 2021 for the next five years, calculated using the currency exchange rate at the date of acquisition, if applicable, is as follows (in thousands): 2022 $ 1,295,054 2023 1,226,690 2024 1,173,996 2025 1,110,748 2026 979,483 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASESOur leases consist primarily of operating real estate leases for office space and data centers in the markets in which we conduct business. We also have operating and finance leases for computer and other equipment. Many of our leases include escalating rental payments and incentives, as well as termination and renewal options. Certain of our lease agreements provide that we pay the cost of property taxes, insurance and maintenance. As described in "Note 1—Basis of Presentation and Summary of Significant Accounting Policies," we adopted ASU 2016-02 on January 1, 2019. As of December 31, 2021 and 2020, right-of-use assets and lease liabilities consisted of the following: Balance Sheet Location December 31, 2021 December 31, 2020 (in thousands) Assets: Operating lease right-of-use assets: Real estate Other noncurrent assets $ 404,453 $ 425,376 Computer equipment Other noncurrent assets 88,431 54,959 Other Other noncurrent assets 1,198 862 Total operating lease right-of-use-assets $ 494,082 $ 481,197 Finance lease right-of-use assets: Computer equipment Property and equipment, net $ 24,720 $ 26,737 Other equipment Property and equipment, net 55,953 45,560 Other Property and equipment, net 4,608 4,260 85,281 76,557 Less accumulated depreciation: Computer equipment Property and equipment, net (11,107) (6,602) Other equipment Property and equipment, net (19,914) (8,628) Other Property and equipment, net (344) (869) Total accumulated depreciation (31,365) (16,099) Total finance lease right-of-use assets 53,916 60,458 Total right-of-use assets (1) $ 547,998 $ 541,655 Liabilities: Operating lease liabilities (current) Accounts payable and accrued liabilities $ 103,554 $ 103,706 Operating lease liabilities (noncurrent) Other noncurrent liabilities 550,726 448,016 Finance lease liabilities (current) Current portion of long-term debt 19,905 18,217 Finance lease liabilities (noncurrent) Long-term debt 44,516 57,772 Total lease liabilities $ 718,701 $ 627,711 (1) As of December 31, 2021 and 2020, approximately 75% and 72% of our right-of-use assets were located in the United States. The weighted-average remaining lease term for operating and finance leases at December 31, 2021 was 8.4 years and 3.2 years, respectively. The weighted-average remaining lease term for operating and finance leases at December 31, 2020 was 7.4 years and 4.3 years, respectively. As of December 31, 2021, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 3.2% and 3.2%, respectively. As of December 31, 2020, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 3.5% and 3.3%, respectively. As of December 31, 2021, maturities of lease liabilities were as follows: Operating Leases Finance Leases (in thousands) Year ending December 31, 2022 $ 129,762 $ 25,060 2023 111,749 20,460 2024 106,834 18,061 2025 79,220 4,701 2026 60,828 317 2027 and thereafter 264,535 — Total lease payments (1) 752,928 68,599 Imputed interest (98,648) (4,178) Total lease liabilities $ 654,280 $ 64,421 (1) Total operating lease payments do not include approximately $24.2 million for operating leases that had not yet commenced at December 31, 2021. We expect the lease commencement dates for these leases to occur in 2022. Operating lease costs in our consolidated statement of income for the year ended December 31, 2021 were $195.6 million, including $157.4 million in selling, general and administrative expenses and $38.2 million in cost of services. Total lease costs for the year ended December 31, 2021 include variable lease costs of $18.1 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs for the year ended December 31, 2021 were $20.5 million, including $18.4 million of amortization on right-of use assets and $2.2 million of interest on lease liabilities. Lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2021 . Operating lease costs in our consolidated statement of income for the year ended December 31, 2020 were $147.0 million, including $108.4 million in selling, general and administrative expenses and $38.6 million in cost of services. Total lease costs for the year ended December 31, 2020 include variable lease costs of $17.9 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs for the year ended December 31, 2020 wer e $16.3 million, including $14.6 million of amortization on right-of use assets and $1.6 million of interest on lease liabilities. Lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2020. Operating lease costs in our consolidated statement of income for the year ended December 31, 2019 were $85.9 million, including $71.0 million in selling, general and administrative expenses and $14.9 million in cost of services. Total lease costs for the year ended December 31, 2019 include variable lease costs of $19.1 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs and lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2021, 2020 and 2019 w as $123.6 million , |
LEASES | LEASESOur leases consist primarily of operating real estate leases for office space and data centers in the markets in which we conduct business. We also have operating and finance leases for computer and other equipment. Many of our leases include escalating rental payments and incentives, as well as termination and renewal options. Certain of our lease agreements provide that we pay the cost of property taxes, insurance and maintenance. As described in "Note 1—Basis of Presentation and Summary of Significant Accounting Policies," we adopted ASU 2016-02 on January 1, 2019. As of December 31, 2021 and 2020, right-of-use assets and lease liabilities consisted of the following: Balance Sheet Location December 31, 2021 December 31, 2020 (in thousands) Assets: Operating lease right-of-use assets: Real estate Other noncurrent assets $ 404,453 $ 425,376 Computer equipment Other noncurrent assets 88,431 54,959 Other Other noncurrent assets 1,198 862 Total operating lease right-of-use-assets $ 494,082 $ 481,197 Finance lease right-of-use assets: Computer equipment Property and equipment, net $ 24,720 $ 26,737 Other equipment Property and equipment, net 55,953 45,560 Other Property and equipment, net 4,608 4,260 85,281 76,557 Less accumulated depreciation: Computer equipment Property and equipment, net (11,107) (6,602) Other equipment Property and equipment, net (19,914) (8,628) Other Property and equipment, net (344) (869) Total accumulated depreciation (31,365) (16,099) Total finance lease right-of-use assets 53,916 60,458 Total right-of-use assets (1) $ 547,998 $ 541,655 Liabilities: Operating lease liabilities (current) Accounts payable and accrued liabilities $ 103,554 $ 103,706 Operating lease liabilities (noncurrent) Other noncurrent liabilities 550,726 448,016 Finance lease liabilities (current) Current portion of long-term debt 19,905 18,217 Finance lease liabilities (noncurrent) Long-term debt 44,516 57,772 Total lease liabilities $ 718,701 $ 627,711 (1) As of December 31, 2021 and 2020, approximately 75% and 72% of our right-of-use assets were located in the United States. The weighted-average remaining lease term for operating and finance leases at December 31, 2021 was 8.4 years and 3.2 years, respectively. The weighted-average remaining lease term for operating and finance leases at December 31, 2020 was 7.4 years and 4.3 years, respectively. As of December 31, 2021, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 3.2% and 3.2%, respectively. As of December 31, 2020, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 3.5% and 3.3%, respectively. As of December 31, 2021, maturities of lease liabilities were as follows: Operating Leases Finance Leases (in thousands) Year ending December 31, 2022 $ 129,762 $ 25,060 2023 111,749 20,460 2024 106,834 18,061 2025 79,220 4,701 2026 60,828 317 2027 and thereafter 264,535 — Total lease payments (1) 752,928 68,599 Imputed interest (98,648) (4,178) Total lease liabilities $ 654,280 $ 64,421 (1) Total operating lease payments do not include approximately $24.2 million for operating leases that had not yet commenced at December 31, 2021. We expect the lease commencement dates for these leases to occur in 2022. Operating lease costs in our consolidated statement of income for the year ended December 31, 2021 were $195.6 million, including $157.4 million in selling, general and administrative expenses and $38.2 million in cost of services. Total lease costs for the year ended December 31, 2021 include variable lease costs of $18.1 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs for the year ended December 31, 2021 were $20.5 million, including $18.4 million of amortization on right-of use assets and $2.2 million of interest on lease liabilities. Lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2021 . Operating lease costs in our consolidated statement of income for the year ended December 31, 2020 were $147.0 million, including $108.4 million in selling, general and administrative expenses and $38.6 million in cost of services. Total lease costs for the year ended December 31, 2020 include variable lease costs of $17.9 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs for the year ended December 31, 2020 wer e $16.3 million, including $14.6 million of amortization on right-of use assets and $1.6 million of interest on lease liabilities. Lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2020. Operating lease costs in our consolidated statement of income for the year ended December 31, 2019 were $85.9 million, including $71.0 million in selling, general and administrative expenses and $14.9 million in cost of services. Total lease costs for the year ended December 31, 2019 include variable lease costs of $19.1 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs and lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2021, 2020 and 2019 w as $123.6 million , |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Through certain of our subsidiaries in Europe, we were a member and shareholder of Visa Europe Limited ("Visa Europe"). On June 21, 2016, Visa Inc. ("Visa") acquired all of the membership interests in Visa Europe, and we received consideration in the form of cash and Series B and C convertible preferred shares of Visa. We assigned the preferred shares received a value of zero based on transfer restrictions, Visa's ability to adjust the conversion rate and the estimation uncertainty associated with those factors. Based on the outcome of any current or potential litigation involving Visa Europe in the United Kingdom and elsewhere in Europe, the conversion rate of the preferred shares could be adjusted down such that the number of Visa common shares we receive could be as low as zero. The Series B and C convertible preferred shares become convertible in stages based on developments in the litigation and become fully convertible no later than 2028 (subject to a holdback to cover any then pending claims). On September 24, 2020, in connection with the first mandatory release assessment, a portion of the Series B and C convertible preferred shares was converted by Visa representing approximately half of the original potential conversion rate. We recognized a gain of $27.7 million reported in interest and other income in our consolidated statement of income for the year ended December 31, 2020 based on the fair value of the shares received. The shares were subsequently sold in October 2020. The remaining Series B and C convertible preferred shares continue to be carried at an assigned value of zero based on the aforementioned factors. |
LONG-TERM DEBT AND LINES OF CRE
LONG-TERM DEBT AND LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND LINES OF CREDIT | LONG-TERM DEBT AND LINES OF CREDIT As of December 31, 2021 and 2020, long-term debt consisted of the following: December 31, 2021 December 31, 2020 (in thousands) Long-term Debt 3.800% senior notes due April 1, 2021 $ — $ 752,199 3.750% senior notes due June 1, 2023 557,186 562,258 4.000% senior notes due June 1, 2023 559,338 565,930 1.500% senior notes due November 15, 2024 497,185 — 2.650% senior notes due February 15, 2025 994,797 993,110 1.200% senior notes due March 1, 2026 1,092,016 — 4.800% senior notes due April 1, 2026 798,024 809,324 2.150% senior notes due January 15, 2027 743,695 — 4.450% senior notes due June 1, 2028 478,194 482,588 3.200% senior notes due August 15, 2029 1,238,006 1,236,424 2.900% senior notes due May 15, 2030 990,196 989,025 2.900% senior notes due November 15, 2031 741,716 — 4.150% senior notes due August 15, 2049 740,146 739,789 Unsecured term loan facility 1,989,793 1,985,776 Unsecured revolving credit facility — 36,000 Finance lease liabilities 64,421 75,989 Other borrowings 8,601 65,352 Total long-term debt 11,493,314 9,293,764 Less current portion 78,505 827,357 Long-term debt, excluding current portion $ 11,414,809 $ 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 December 31, 2021, unamortized discount on senior notes was $11.7 million, and unamortized debt issuance costs on senior notes and the unsecured term loan facility were $60.7 million. At December 31, 2020, unamortized discount on senior notes was $8.5 million, and unamortized debt issuance costs on our senior notes and unsecured term loans were $47.4 million. The portion of unamortized debt issuance costs related to revolving credit facilities is included in other noncurrent assets. At December 31, 2021, unamortized debt issuance costs on the unsecured revolving credit facility were $9.9 million, and, at December 31, 2020, unamortized debt issuance costs on the secured revolving credit facility were $13.8 million. The amortization of debt discounts and debt issuance costs is recognized as an increase to interest expense over the terms of the respective debt instruments. Amortization of discounts and debt issuance costs was $14.4 million, $12.0 million and $11.9 million, respectively, for years ended December 31, 2021, 2020 and 2019. At December 31, 2021, future maturities of long-term debt (excluding finance lease liabilities) are as follows by year (in thousands): Year ending December 31, 2022 $ 58,600 2023 1,300,000 2024 2,250,000 2025 1,000,000 2026 1,850,000 2027 and thereafter 4,950,000 Total $ 11,408,600 See "Note 6—Leases" for more information about our finance lease liabilities, including maturities. Senior Unsecured Notes We have $9.4 billion in aggregate principal amount of senior unsecured notes, as presented in the table above, which are comprised of senior notes issued in 2021, 2020 and 2019, and senior notes assumed in the Merger. Interest on the senior notes is payable semi-annually at various dates. Each series of the senior notes is redeemable, at our option, in whole or in part, at any time and from time-to-time at the redemption prices set forth in the related indenture On November 22, 2021, we issued $2.0 billion aggregate principal amount of senior unsecured notes consisting of the following: (i) $500.0 million aggregate principal amount of 1.500% senior notes due November 2024; (ii) $750.0 million aggregate principal amount of 2.150% senior notes due January 2027; and (iii) $750.0 million aggregate principal amount of 2.900% senior notes due November 2031. We incurred debt issuance costs of approximately $14.4 million, including underwriting fees, fees for professional services and registration fees, which were capitalized and reflected as a reduction of the related carrying amount of the notes in our consolidated balance sheet at December 31, 2021. Interest on the senior unsecured notes is payable semi-annually in arrears on May 15 and November 15 for the 2024 and 2031 notes and January 15 and July 15 on the 2027 note, commencing May 15, 2022 for the 2024 note and the 2031 note and July 15, 2022 for the 2027 note. The notes are unsecured and unsubordinated indebtedness and rank equally in right of payment with all of our other outstanding unsecured and unsubordinated indebtedness. We used the net proceeds from the offering to repay the outstanding indebtedness under our revolving credit facility and for general corporate purposes. On February 26, 2021, we issued $1.1 billion 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 December 31, 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. On May 15, 2020, we issued $1.0 billion aggregate principal amount of 2.900% senior unsecured notes due May 2030 and received proceeds of $996.7 million. We incurred debt issuance costs of approximately $8.4 million, including underwriting fees, fees for professional services and registration fees, which were capitalized and reflected as a reduction of the related carrying amount of the notes in our consolidated balance sheet at December 31, 2021. Interest on the notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing November 15, 2020. The notes are unsecured and unsubordinated indebtedness and rank equally in right of payment with all of our other outstanding unsecured and unsubordinated indebtedness. We used the net proceeds from the offering to repay a portion of the outstanding indebtedness on our revolving credit facility and for general corporate purposes. On August 14, 2019, we issued $3.0 billion aggregate principal amount of senior unsecured notes, consisting of the following: (i) $1.0 billion aggregate principal amount of 2.650% senior notes due 2025; (ii) $1.25 billion aggregate principal amount of 3.200% senior notes due 2029; and (iii) $750.0 million aggregate principal amount of 4.150% senior notes due 2049. Interest on the senior notes is payable semi-annually in arrears on each February 15 and August 15, beginning on February 15, 2020. Each series of the senior notes is redeemable, at our option, in whole or in part, at any time and from time-to-time at the redemption prices set forth in the related indenture. We issued the senior notes at a total discount of $6.1 million and capitalized related debt issuance costs of $29.6 million. From August 14, 2019 until the closing of the Merger on September 18, 2019, the proceeds from the issuance of the senior notes were held in escrow. Upon closing, the funds were released and used together with borrowings under the term loan facility and the revolving credit facility, as well as cash on hand, to repay TSYS' unsecured revolving credit facility, refinance certain of our existing indebtedness, fund cash payments made in lieu of fractional shares and pay transaction fees and costs related to the Merger. In addition, in connection with the Merger, we assumed $3.0 billion aggregate principal amount of senior unsecured notes of TSYS, consisting of the following: (i) $750.0 million aggregate principal amount of 3.800% senior notes due 2021, which were redeemed in February 2021; (ii) $550.0 million aggregate principal amount of 3.750% senior notes due 2023; (iii) $550.0 million aggregate principal amount of 4.000% senior notes due 2023; (iv) $750 million aggregate principal amount of 4.800% senior notes due 2026; and (v) $450 million aggregate principal amount of 4.450% senior notes due 2028. For the 3.800% senior notes due 2021 and the 4.800% senior notes due 2026, interest is payable semi-annually each April 1 and October 1. For the 3.750% senior notes due 2023, the 4.000% senior notes due 2023 and the 4.450% senior notes due 2028, interest is payable semi-annually each June 1 and December 1. The difference between the acquisition-date fair value and face value of senior notes assumed in the Merger is recognized over the terms of the respective notes as a reduction of interest expense. The amortization of this fair value adjustment was $29.6 million and $36.2 million for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, our senior notes had a total carrying amount of $9.4 billion and an estimated fair value of $9.8 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 December 31, 2021. Senior Unsecured Credit Facilities We have a Term Loan Credit Agreement and an Unsecured Revolving Credit Agreement in each case with Bank of America, N.A., as administrative agent, and a syndicate of financial institutions, as lenders and other agents. The Term Loan Credit Agreement provides for a senior unsecured $2.0 billion term loan facility, and the Unsecured Revolving Credit Agreement provides for a senior unsecured $3.0 billion revolving credit facility. We capitalized debt issuance costs of $12.8 million in connection with the issuances of these term loan and revolving credit facilities. As of December 31, 2021, borrowings outstanding under the term loan facility were $2.0 billion and there were no outstanding borrowings under the revolving credit facility. Borrowings under the term loan facility were made in U.S. dollars and borrowings under the revolving credit facility are available to be made in U.S. dollars, euros, sterling, Canadian dollars and, subject to certain conditions, certain other currencies at our option. Borrowings in U.S. dollars and certain other LIBOR-quoted currencies will bear interest, at our option, at a rate equal to either (1) the rate (adjusted for any statutory reserve requirements for eurocurrency liabilities) for eurodollar deposits in the London interbank market, (2) a floating rate of interest set forth on the applicable LIBOR screen page designated by Bank of America or (3) the highest of (a) the federal funds effective rate plus 0.5%, (b) the rate of interest as publicly announced by Bank of America as its "prime rate" or (c) LIBOR plus 1.0%, in each case, plus an applicable margin. In connection with the sunset of certain LIBOR reference rates occurring at the end of 2021, we amended the Unsecured Revolving Credit Agreement in December 2021 to replace LIBOR as administered by the ICE Benchmark Administration with the Sterling Overnight Index Average Reference Rate and the Euro Interbank Offered Rate for any extension of credit denominated in sterling or euros, respectively. As of December 31, 2021, the interest rate on the term loan facility was 1.48%. In addition, we are required to pay a quarterly commitment fee with respect to the unused portion of the revolving credit facility at an applicable rate per annum ranging from 0.125% to 0.300% depending on our credit rating. Beginning on December 31, 2022, and at the end of each quarter thereafter, the term loan facility must be repaid in quarterly installments in the amount of 2.50% of original principal through the maturity date with the remaining principal balance due upon maturity in September 2024. The revolving credit facility also matures in September 2024. We may issue standby letters of credit of up to $250 million in the aggregate under the revolving credit facility. Outstanding letters of credit under the revolving credit facility reduce the amount of borrowings available to us. The amounts available to borrow under the revolving credit facility are also determined by a financial leverage covenant. As of December 31, 2021, the total available commitments under the revolving credit facility wer e $1.9 billion . Compliance with Covenants The term loan facility and the revolving credit facility contain customary conditions to funding, affirmative covenants, negative covenants, financial covenants and events of default. As of December 31, 2021, financial covenants under the term loan facility required a leverage ratio o f 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 December 31, 2021. Settlement Lines of Credit In various markets where our Merchant Solutions segment does business, we have specialized lines of credit, which are restricted for use in funding settlement. The settlement lines of credit generally have variable interest rates, are subject to annual review and are denominated in local currency but may, in some cases, facilitate borrowings in multiple currencies. For certain of our lines of credit, the available credit is increased by the amount of cash we have on deposit in specific accounts with the lender. Accordingly, the amount of the outstanding line of credit may exceed the stated credit limit. As of December 31, 2021 and 2020, a total of $76.3 million an d $64.5 million, respectively, of cash on deposit was used to determine the available credit. As of December 31, 2021, we had $484.2 million outstanding under these lines of credit with additional capacity to fund settlement of $1,693.2 million. During the year ended December 31, 2021, the maximum and average outstanding balances under these lines of credit were $1,267.4 million and $487.7 million, respectively. The weighted-average interest rate on these borrowings was 2.22% at December 31, 2021. Derivative Instruments We have interest rate swap agreements with financial institutions to hedge changes in cash flows attributable to interest rate risk on a portion of our variable-rate debt instruments. Net amounts to be received or paid under the swap agreements are reflected as adjustments to interest expense. Since we have designated the interest rate swap agreements as portfolio cash flow hedges, unrealized gains or losses resulting from adjusting the swaps to fair value are recorded as components of other comprehensive income (loss). In addition, in June 2019, we entered into forward-starting interest rate swap agreements with an aggregate notional amount of $1.0 billion. The forward-starting interest rate swaps, designated as cash flow hedges, were designed to manage the exposure to interest rate volatility in anticipation of the issuance of our senior unsecured notes. During the period from the commencement of the swaps through the date upon which our senior unsecured notes were issued, the effective portion of the unrealized losses on the swaps was included in other comprehensive loss. Upon issuance of our senior unsecured notes, we terminated the forward-starting swap agreements and made settlement payments of $48.3 million, which are included in cash flows from operating activities in our consolidated statement of cash flows for the year ended December 31, 2019 within the caption labeled "Other, net." We have and will continue to reclassify the effective portion of the realized loss from accumulated other comprehensive loss into interest expense over the terms of the related senior notes. The table below presents information about our derivative financial instruments, designated as cash flow hedges, included in the consolidated balance sheets. 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 December 31, 2021 and classified within Level 2 of the valuation hierarchy. Weighted-Average Fixed Rate of Interest at Range of Maturity Dates at Fair Value Derivative Financial Instruments Balance Sheet Location December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2020 (in thousands) Interest rate swaps (Notional of $1,250.0 million at December 31, 2021 and $300.0 million at December 31, 2020) Accounts payable & accrued liabilities 2.73% December 31, 2022 $ 28,777 $ 1,330 Interest rate swaps (Notional of $1,250 million at December 31, 2020) Other noncurrent liabilities N/A N/A $ — $ 65,490 N/A - 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 years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 (in thousands) Net unrealized gains (losses) recognized in other comprehensive loss $ 3,425 $ (52,742) $ (90,238) Net unrealized losses reclassified out of other comprehensive loss to interest expense $ 40,094 $ 36,510 $ 2,257 At December 31, 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 approximately $34.2 million. Interest Expense Interest expense was $328.0 million, $326.8 million and $301.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES As of December 31, 2021 and 2020, accounts payable and accrued liabilities consisted of the following: 2021 2020 (in thousands) Funds held for customers $ 775,852 $ 645,863 Trade accounts payable 262,014 128,721 Contract liabilities 227,783 217,938 Payment network fees 187,665 166,880 Compensation and benefits 184,580 194,090 Operating lease liabilities 103,554 103,706 Third-party commissions 88,109 74,391 Audit and legal 82,108 44,146 Miscellaneous taxes and withholdings 68,323 68,048 Interest 64,591 62,865 Income taxes payable 51,818 13,517 Unclaimed property 34,744 32,497 Interest rate swap liabilities 28,777 1,330 Third-party processing fees 27,345 24,619 Current portion of accrued buyout liability (1) 22,204 16,180 Settlement of common share repurchases — 20,000 Other 332,789 246,593 $ 2,542,256 $ 2,061,384 (1) The noncurrent portion of accrued buyout liability of $44.6 million and $30.7 million is included in other noncurrent liabilities in the consolidated balance sheets as of December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, accounts payable and accrued liabilities in the consolidated balance sheet included obligations totaling $14.5 million and $48.4 million, respectively, for employee termination benefits resulting from Merger-related integration activities. During the years ended December 31, 2021, 2020 and 2019, we recognized charges for employee termination benefits of $43.4 million, $83.3 million and $57.1 million, respectively, which included $1.2 million, $6.7 million and $17.3 million, respectively, of share-based compensation expense. As of December 31, 2021, the cumulative amount of recognized charges for employee termination benefits resulting from Merger-related integration activities was $183.8 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. Employee termination benefits from Merger-related integration activities are substantially complete as of December 31, 2021 and any remaining obligations are expected to be paid within the next 12 months. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | INCOME TAX The income tax expense for the years ended December 31, 2021, 2020 and 2019 consisted of the following: Years Ended December 31, 2021 2020 2019 (in thousands) Current income tax expense (benefit): Federal $ 195,804 $ 124,176 $ 50,048 State 58,772 35,840 29,788 Foreign 103,781 82,456 90,895 358,357 242,472 170,731 Deferred income tax expense (benefit): Federal (178,666) (151,824) (79,813) State (18,500) (20,607) (29,326) Foreign 7,843 7,112 598 (189,323) (165,319) (108,541) $ 169,034 $ 77,153 $ 62,190 Income tax expense allocated to noncontrolling interests was $6.8 million, $8.5 million and $12.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents income before income taxes for the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 (in thousands) United States $ 537,586 $ 194,190 $ 60,000 Foreign 506,959 399,766 457,925 $ 1,044,545 $ 593,956 $ 517,925 Approximately $32.7 million of our undistributed foreign earnings are considered to be indefinitely reinvested outside the United States as of December 31, 2021. Because those earnings are considered to be indefinitely reinvested, no deferred income taxes have been provided thereon. If we were to make a distribution of any portion of those earnings in the form of dividends or otherwise, any such amounts would be subject to withholding taxes payable to various foreign jurisdictions; however, the amounts would not be subject to any additional U.S. income tax. Our effective tax rates for the years ended December 31, 2021, 2020 and 2019 differ from the federal statutory rate for those periods as follows: Years Ended December 31, 2021 2020 2019 Federal U.S. statutory rate 21.0 % 21.0 % 21.0 % Foreign interest income not subject to tax (4.2) (4.2) (4.5) Tax credits (3.8) (5.3) (3.9) State income taxes, net of federal income tax benefit 3.4 0.7 1.0 Foreign-derived intangible income deduction (1.9) (2.8) (2.7) Valuation allowance (1.7) (0.1) 4.6 Nondeductible executive compensation 1.0 1.7 1.0 Equity method investment partnership income 0.9 1.1 — Uncertain tax positions (0.3) 1.1 (2.6) Foreign income taxes 0.3 0.6 (0.7) Share-based compensation expense (0.2) (2.7) (2.5) Other 1.7 1.9 1.3 Effective tax rate 16.2 % 13.0 % 12.0 % Deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax laws and rates. Deferred income taxes as of December 31, 2021 and 2020 reflect the effect of temporary differences between the amounts of assets and liabilities for financial accounting and income tax purposes. As of December 31, 2021 and 2020, principal components of deferred tax items were as follows: 2021 2020 (in thousands) Deferred income tax assets: Lease liabilities $ 130,328 $ 105,959 Foreign net operating loss carryforwards 104,499 107,931 Credit carryforwards 49,875 42,637 Accrued expenses 42,839 38,521 Financial instruments 37,928 60,340 Share-based compensation expense 36,086 41,558 Domestic net operating loss carryforwards 29,806 18,952 Other 42,945 58,107 474,306 474,005 Valuation allowance (112,259) (132,531) 362,047 341,474 Deferred tax liabilities: Acquired intangibles 2,580,489 2,736,300 Property and equipment 261,764 248,375 Partnership interests 136,022 100,951 Right-of-use assets 94,739 89,734 Other 70,343 106,877 3,143,357 3,282,237 Net deferred income tax liability $ 2,781,310 $ 2,940,763 The net deferred income taxes reflected in our consolidated balance sheets as of December 31, 2021 and 2020 are as follows: 2021 2020 (in thousands) Noncurrent deferred income tax asset $ (12,117) $ (7,627) Noncurrent deferred income tax liability 2,793,427 2,948,390 Net deferred income tax liability $ 2,781,310 $ 2,940,763 A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Changes to our valuation allowance during the years ended December 31, 2021, 2020 and 2019 are summarized below (in thousands): Balance at December 31, 2018 $ (23,390) Allowance for foreign net operating loss carryforwards (26,439) Allowance for foreign credit carryforwards (15,226) Allowance for state credit carryforwards (6,680) Allowance for domestic net operating loss carryforwards (307) Balance at December 31, 2019 (72,042) Allowance for foreign net operating loss carryforwards (63,113) Allowance for foreign credit carryforwards (2,486) Allowance for state credit carryforwards 2,932 Allowance for domestic net operating loss carryforwards 2,178 Balance at December 31, 2020 (132,531) Allowance for foreign net operating loss carryforwards 5,804 Allowance for foreign credit carryforwards 12,656 Allowance for state credit carryforwards (1,995) Allowance for domestic net operating loss carryforwards 3,807 Balance at December 31, 2021 $ (112,259) The decrease in the valuation allowance for the year ended December 31, 2021 is primarily related to the foreign net operating loss carryforwards and the foreign tax credit carryforwards which the Company determined are more likely than not to be realized. The increase in the valuation allowance related to the foreign net operating loss carryforwards for the year ended December 31, 2020 is due to the addition of a foreign affiliate net operating loss with a related full valuation allowance. The increases in the valuation allowance related to both the state and foreign credit carryforwards for the year ended December 31, 2019 relate primarily to carryforward assets recognized in connection with the Merger . Foreign net operating loss carryforwards of $103.8 million will expire between December 31, 2024 and December 31, 2040, if not utilized. Foreign net operating loss carryforwards of $0.7 million have indefinite carryforward periods. Domestic net operating loss carryforwards of $29.8 million and tax credit carryforwards of $49.9 million will expire between December 31, 2024 and December 31, 2040, if not utilized. We conduct business globally and file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities around the world. We are no longer subject to state income tax examinations for years ended on or before May 31, 2007, U.S. federal income tax examinations for years ended on or before December 31, 2017 and U.K. corporation tax examinations for years ended on or before December 31, 2017. A reconciliation of the beginning and ending amounts of unrecognized income tax benefits, excluding penalties and interest, for the years ended December 31, 2021, 2020 and 2019 is as follows: Years Ended December 31, 2021 2020 2019 (in thousands) Balance at the beginning of the year $ 39,408 $ 29,671 $ 21,197 Additions related to acquisitions 387 3,186 22,283 Reductions for income tax positions of prior years (10,875) (5,408) (14,235) Settlements with income tax authorities (2,137) (909) (2,583) Additions for income tax positions of prior years 2,289 7,968 1,803 Additions based on income tax positions related to the current year 5,833 4,900 1,206 Balance at the end of the year $ 34,905 $ 39,408 $ 29,671 As of December 31, 2021, the total amount of gross unrecognized income tax benefits that, if recognized, would affect the provision for income taxes is $32.9 million. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 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. Information about shares repurchased and retired was as follows for the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 (in thousands, except per share amounts) Number of shares repurchased and retired 15,169 3,304 2,328 Cost of shares repurchased, including commissions $ 2,513,629 $ 633,948 $ 324,583 Average cost per share $ 165.72 $ 191.87 $ 139.42 The share repurchase activity for the year ended December 31, 2021 included the repurchase of 2,491,161 shares at an average price of $200.71 per share under an ASR agreement we entered into on February 10, 2021 with a financial institution to repurchase an aggregate of $500 million of our common stock during the A SR program purchase period, which ended on March 31, 2021. In connection with the completion of the Merger, our Articles of Incorporation were amended during the year ended December 31, 2019 to increase the number of authorized shares of Global Payments common stock from 200 million to 400 million. As of December 31, 2021, the amount that may yet be purchased under our share repurchase program was $1,540.0 million. On January 27, 2022, our board of directors approved an increase to our existing share repurchase program authorization, which raised the total available authorization to $2.0 billion. On January 27, 2022, our board of directors declared a cash dividend of $0.25 per share payable on March 25, 2022 to common shareholders of record on March 11, 2022. |
SHARE-BASED AWARDS AND OPTIONS
SHARE-BASED AWARDS AND OPTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED AWARDS AND OPTIONS | SHARE-BASED AWARDS AND OPTIONS We have granted nonqualified stock options and restricted stock awards to key employees, officers and directors under a long-term incentive plan, which permits grants of equity to employees, officers, directors and consultants. A total of 14.0 million shares of our common stock has been reserved and made available for issuance pursuant to awards granted under the plan. The awards are held in escrow and released upon the grantee's satisfaction of conditions of the award certificate. The following table summarizes share-based compensation expense and the related income tax benefit recognized for our share-based awards and stock options: Years Ended December 31, 2021 2020 2019 (in thousands) Share-based compensation expense $ 180,779 $ 148,792 $ 89,634 Income tax benefit $ 42,870 $ 33,530 $ 20,519 Restricted Stock Restricted stock awards vest in equal annual installments over a three-year period or in some cases vest at the end of a three-year service period. Restricted shares cannot be sold or transferred until they have vested. The grant date fair value of restricted stock awards, which is based on the quoted market value of our common stock on the grant date, is recognized as share-based compensation expense on a straight-line basis over the vesting period. Performance Units Certain of our executives have been granted performance-based restricted stock units that, after a performance period, may convert into common shares ("performance units"). The number of common shares is dependent upon the level of achievement of certain performance measures during the performance period. The Compensation Committee of our board of directors ("Compensation Committee") establishes performance measures and may set a range of possible performance-based outcomes for performance units. Performance units are converted only after the Compensation Committee certifies performance based on pre-established measures. For these awards, we recognize compensation expense on a straight-line basis over the applicable performance or service period using the grant date fair value of the award and the number of shares expected to be earned according to the level of achievement of performance measures. When the estimated number of common shares expected to be earned is changed during the performance period, we make a cumulative adjustment to share-based compensation expense based on the revised estimate. The performance periods for awards granted generally range from one The following table summarizes the changes in unvested restricted stock awards and performance units for the years ended December 31, 2021, 2020 and 2019: Shares Weighted-Average (in thousands) Unvested at December 31, 2018 1,084 $108.51 Replacement Awards 894 163.74 Granted 784 142.26 Vested (781) 105.04 Forfeited (137) 124.30 Unvested at December 31, 2019 1,844 149.96 Granted 607 191.20 Vested (835) 128.91 Forfeited (70) 168.40 Unvested at December 31, 2020 1,546 176.71 Granted 1,465 192.19 Vested (1,263) 154.06 Forfeited (108) 181.61 Unvested at December 31, 2021 1,640 $184.90 The total fair value of restricted stock and performance awards vested was $194.6 million, $107.7 million and $82.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. For restricted stock and performance awards, we recognized compensation expense of $167.3 million, $135.4 million and $74.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Compensation expense for the year ended December 31, 2021 included approximately $32.2 million related to the vesting of certain performance-based restricted stock units upon achievement of performance measures during the period. As of December 31, 2021, there was $174.2 million of unrecognized compensation expense related to unvested restricted stock awards and performance units that we expect to recognize over a weighted-average period of 1.9 years. Our restricted stock and performance unit plans provide for accelerated vesting under certain conditions. Stock Options Stock options are granted with an exercise price equal to 100% of fair market value of our common stock on the date of grant and have a term of ten years. Stock options vest in equal installments on each of the first three The following table summarizes changes in stock option activity for the years ended December 31, 2021, 2020 and 2019: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at December 31, 2018 598 $59.16 6.2 $27.3 Replacement Awards 1,336 68.96 Granted 109 128.22 Forfeited (23) 110.13 Exercised (265) 33.99 28.8 Outstanding at December 31, 2019 1,755 74.06 6.5 190.3 Granted 124 200.42 Forfeited (3) 112.85 Exercised (623) 59.78 85.8 Outstanding at December 31, 2020 1,253 93.66 6.3 152.6 Granted 112 196.06 Forfeited (1) 113.48 Exercised (192) 68.42 24.1 Outstanding at December 31, 2021 1,172 $107.44 5.8 $47.4 Options vested and exercisable at December 31, 2021 897 $86.80 5.1 $46.1 We recognized compensation expense for stock opti ons of $7.9 million , $8.4 million and $12.5 million during the years ended December 31, 2021, 2020 and 2019, respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2021, 2020 and 2019 was $24.1 million, $85.8 million and $28.8 million. As of December 31, 2021, we had $8.2 million of unrecognized compensation expense related to unvested stock options that we expect to recognize over a weighted-average period of 1.7 years. The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2021, 2020 and 2019, including the Replacement Awards granted during the year ended December 31, 2019, was $65.99, $54.85, and $99.56, respectively. Fair value was estimated on the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions: Years Ended December 31, 2021 2020 2019 Risk-free interest rate 0.59 % 1.24 % 1.72 % Expected volatility 40 % 30 % 31 % Dividend yield 0.44 % 0.39 % 0.04 % Expected term (years) 5 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. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow disclosures for the years ended December 31, 2021, 2020 and 2019 are as follows: Years Ended December 31, 2021 2020 2019 (in thousands) Income taxes paid, net of refunds $ 295,534 $ 308,620 $ 146,739 Interest paid $ 335,481 $ 343,213 $ 206,562 |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | NONCONTROLLING INTERESTS The following table presents the reconciliation of net income attributable to noncontrolling interests to comprehensive income attributable to noncontrolling interests for the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 (in thousands) Net income attributable to noncontrolling interests $ 22,404 $ 20,580 $ 38,663 Foreign currency translation attributable to noncontrolling interests (10,281) 14,643 (2,725) Comprehensive income attributable to noncontrolling interests $ 12,123 $ 35,223 $ 35,938 During the year ended December 31, 2021, Global Payments and noncontrolling shareholders made contributions of $209.6 million and $70.0 million, respectively, to certain of our majority-owned subsidiaries based on each shareholder's proportionate ownership, primarily to fund acquisitions that closed in the fourth quarter of 2021. The contributions from the noncontrolling shareholders were recorded as an increase to noncontrolling interests in the consolidated balance sheet. In addition, we increased our controlling financial interest in one of our majority-owned subsidiaries from 51% to 55%, which resulted in a reallocation between equity attributable to noncontrolling interests and total equity attributable to Global Payments. During the year ended December 31, 2020, we paid €493 million ($578.2 million equivalent) to increase our controlling financial interest in Comercia Global Payments Entidad de Pago, S.L. (“Comercia”) from 51% to 80%. We funded the transaction with a combination of available cash and borrowings on our unsecured revolving credit facility. The transaction resulted in a reduction in equity attributable to noncontrolling interests of approximately $68.4 million and a reduction in total equity attributable to Global Payments of approximately $509.8 million. The net effects of the transaction include a reclassification of an accumulated other comprehensive loss related to foreign currency translation of $12.1 million from noncontrolling interests to equity attributable to Global Payments. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2021, 2020 and 2019: Foreign Currency Translation Net Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at December 31, 2018 $ (304,274) $ (2,374) $ (3,527) $ (310,175) Other comprehensive income (loss) 62,375 (66,945) 4,174 (396) Balance at December 31, 2019 (241,899) (69,319) 647 (310,571) Other comprehensive income (loss) 139,727 (12,224) (7,150) 120,353 Effect of purchase of subsidiary shares from noncontrolling interest (12,055) — — (12,055) Balance at December 31, 2020 (114,227) (81,543) (6,503) (202,273) Other comprehensive income (loss) (68,814) 33,053 3,760 (32,001) Effect of change in ownership attributable to a noncontrolling interest 92 — — 92 Balance at December 31, 2021 $ (182,949) $ (48,490) $ (2,743) $ (234,182) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Information About Profit and Assets We operate in three reportable segments: Merchant Solutions, Issuer Solutions and Business and Consumer Solutions. Our payment technology solutions are similar around the world in that we enable our customers to accept card, check and digital-based payments. Through our Merchant Solutions segment, our offerings include, but are not limited to, authorization, settlement and funding services, customer support, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and on-line reporting. In addition, we offer a wide array of enterprise software solutions that streamline business operations to customers in numerous vertical markets. We also provide a variety of value-added solutions and services, including specialty point-of-sale software, analytic and customer engagement, human capital management and payroll and reporting that assist our customers with driving demand and operating their businesses more efficiently. Through our Issuer Solutions segment, we provide solutions that enable financial institutions and retailers to manage their card portfolios, reduce technical complexity and overhead and offer a seamless experience for cardholders on a single platform. In addition, we provide flexible commercial payments and ePayables solutions that support business-to-business payment processes for businesses and governments. We also offer complementary services including account management and servicing, fraud solution services, analytics and business intelligence, cards, statements and correspondence, customer contact solutions and risk management solutions. Through our Business and Consumer Solutions segment, we provide general purpose reloadable prepaid debit and payroll cards, demand deposit accounts and other financial service solutions to the underbanked and other consumers and businesses in the United States. Additionally, our Business and Consumer Solutions segment provides B2B payment services and SaaS offerings that automate key procurement processes and enable virtual cards and integrated payments options. 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 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 the 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: Years Ended December 31, 2021 2020 2019 (in thousands) Revenues (1) : Merchant Solutions $ 5,665,557 $ 4,688,335 $ 4,098,580 Issuer Solutions 2,065,971 1,981,435 604,654 Business and Consumer Solutions 886,443 829,505 227,440 Intersegment eliminations (94,209) (75,717) (18,782) Consolidated revenues $ 8,523,762 $ 7,423,558 $ 4,911,892 Operating income (loss) (1)(2) : Merchant Solutions $ 1,725,990 $ 1,162,741 $ 1,148,975 Issuer Solutions 301,119 277,651 82,172 Business and Consumer Solutions 167,777 138,630 19,473 Corporate (836,010) (685,069) (459,203) Consolidated operating income $ 1,358,876 $ 893,953 $ 791,417 Depreciation and amortization (1) : Merchant Solutions $ 993,228 $ 948,798 $ 677,196 Issuer Solutions 580,304 547,299 157,799 Business and Consumer Solutions 85,108 95,720 34,914 Corporate 32,744 22,623 8,426 Consolidated depreciation and amortization $ 1,691,384 $ 1,614,440 $ 878,335 (1) Revenues, operating income and depreciation and amortization reflect the effects of acquired businesses from the respective acquisition dates. (2) During the years ended December 31, 2021, 2020 and 2019, operating loss for Corporate included acquisition and integration expenses of $335.5 million, $313.0 million, and $199.5 million, respectively. During the year ended December 31, 2021, operating loss for Corporate also included $56.8 million of other costs related to facilities exit activities in response to the transition to remote and flexible work arrangements. Operating income for our Merchant Solutions segment reflected the effect of acquisition and integration expenses of $56.1 million during the year ended December 31, 2019. Entity-Wide Information As a percentage of our total consolidated revenues, revenues from external customers in the United States were 79% for the year ended December 31, 2021, 78% for the year ended December 31, 2020, and 72% for the year ended December 31, 2019. Revenues from external customers are attributed to individual countries based on the location of the customer arrangements. Our results of operations and our financial condition are not significantly reliant upon any single customer. Long-lived assets, excluding goodwill and other intangible assets, by location as of December 31, 2021 and 2020 were as follows: 2021 2020 (in thousands) United States $ 1,092,899 $ 1,026,884 Foreign countries 594,687 551,648 $ 1,687,586 $ 1,578,532 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 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 December 31, 2021 for purchase obligations were as follows (in thousands): Year ending December 31: 2022 $ 497,436 2023 239,021 2024 152,084 2025 169,788 2026 201,661 2027 and thereafter 785,128 Total future minimum payments $ 2,045,118 During the year ended December 31, 2020, we entered into a new agreement to acquire software and related services, of which $97.6 million was financed utilizing a two-year vendor financing arrangement. 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. On January 11, 2022, the Georgia Supreme Court denied Frontline’s petition for writ of certiorari and the case has been remanded back to the trial court. We previously determined that it was not probable that a loss had been incurred under the applicable accounting standard (ASC Topic 450, Contingencies ); therefore, the reversal of the judgment did not affect our consolidated financial statements. Operating Taxes We are subject to certain taxes that are not derived based on earnings (e.g., sales, gross receipts, property, value-added and other business taxes). During the course of operations, we must interpret the meaning of various operating tax regulations in the United States and in the foreign jurisdictions in which we do business. We are subject to ongoing audits in certain jurisdictions, and taxing authorities in those various jurisdictions may arrive at different interpretations of applicable tax laws and regulations which could result in the payment of additional taxes in those jurisdictions. BIN/ICA Agreements We have entered into sponsorship or depository and processing agreements with certain banks. These agreements allow us to use the banks' identification numbers, referred to as Bank Identification Number ("BIN") for Visa transactions and an Interbank Card Association ("ICA") number for Mastercard transactions, to clear credit card transactions through Visa and Mastercard. Certain of these agreements contain financial covenants, and we were in compliance with all such covenants as of December 31, 2021. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II Valuation & Qualifying Accounts (in thousands) (a) (b) (c) (d) (e) Description Balance at Beginning of Period Additions: Charged to Costs and Expenses (2) Deductions: Uncollectible Accounts Write-Offs (Recoveries) Balance at End of Period Allowance for credit losses - accounts receivable December 31, 2019 $ 3,048 $ 18,097 $ 11,765 $ 9,380 December 31, 2020 9,380 27,107 15,879 20,608 December 31, 2021 $ 20,608 $ 12,835 $ 16,054 $ 17,389 Allowance for credit losses - settlement assets (1) December 31, 2019 $ 2,788 $ 20,433 $ 19,794 $ 3,427 December 31, 2020 3,427 16,915 14,171 6,171 December 31, 2021 $ 6,171 $ 3,553 $ 6,750 $ 2,974 Reserve for sales allowances December 31, 2019 $ 1,541 $ 6,370 $ 3,841 $ 4,070 December 31, 2020 4,070 14,511 7,710 10,871 December 31, 2021 $ 10,871 $ 16,881 $ 19,236 $ 8,516 Allowance for credit and operating losses - check guarantee December 31, 2019 $ 5,065 $ 13,346 $ 14,490 $ 3,921 December 31, 2020 3,921 10,092 11,911 2,102 December 31, 2021 $ 2,102 $ 10,160 $ 9,725 $ 2,536 Reserve for contract contingencies and processing errors December 31, 2019 $ — $ 5,669 $ 1,453 $ 4,216 December 31, 2020 4,216 515 1,142 3,589 December 31, 2021 $ 3,589 $ 734 $ 2,986 $ 1,337 Reserve for cardholder losses December 31, 2019 $ — $ 24,391 $ 15,159 $ 9,232 December 31, 2020 9,232 61,847 61,004 10,075 December 31, 2021 $ 10,075 $ 62,751 $ 62,769 $ 10,058 Deferred income tax asset valuation allowance December 31, 2019 $ 23,390 $ 48,652 $ — $ 72,042 December 31, 2020 72,042 60,489 — 132,531 December 31, 2021 $ 132,531 $ (20,272) $ — $ 112,259 (1) Included in settlement processing obligations. (2) In addition to amounts charged to costs and expenses, amounts in this column include additions, as applicable, resulting from business combinations and the adoption of the new credit loss standard as of January 1, 2020. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 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 16—Segment Information." Global Payments Inc. and its consolidated subsidiaries are referred to herein collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise. On September 18, 2019, we consummated our merger with Total System Services, Inc. ("TSYS") (the "Merger") for total purchase consideration of $24.5 billion, primarily funded with shares of our common stock. Prior to the Merger, TSYS was a leading global payments provider, offering seamless, secure and innovative solutions to issuers, merchants and consumers. See "Note 2—Acquisitions" for further discussion of the Merger and other acquisitions. |
Use of estimates | Use of estimates — |
Recently adopted and recently issued but not yet adopted accounting pronouncements | Recently adopted accounting pronouncements Accounting Standards Update ("ASU") 2020-04 — In March 2020, the Financial Accounting Standards Board ("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 Accounting Standards Codification ("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, related to borrowings under the term loan credit agreement ("Term Loan Credit Agreement") and revolving credit agreement ("Unsecured Revolving Credit Agreement"), bears interest at a variable rate based on LIBOR. Borrowings under the Term Loan Credit Agreement were made in U.S. dollars and borrowings under the Unsecured Revolving Credit Agreement are available to be made in U.S. dollars, euros, sterling, Canadian dollars and, subject to certain conditions, certain other currencies at our option. In connection with the sunset of certain LIBOR reference rates occurring at the end of 2021, we amended the Unsecured Revolving Credit Agreement in December 2021 to replace LIBOR as administered by the ICE Benchmark Administration with the Sterling Overnight Index Average Reference Rate and the Euro Interbank Offered Rate for any extension of credit denominated in sterling or euros, respectively. We elected to apply the expedients under ASU 2020-04 to the amendment, the application of which did not result in any effect on our consolidated financial statements. Further amendments may be necessary to address the LIBOR reference rates applicable to borrowings made in U.S. dollars. Furthermore, we have entered into hedging instruments to manage our exposure to fluctuations in the USD LIBOR benchmark interest rate, which will mature as of December 31, 2022. We are still evaluating the effect of the discontinuance of LIBOR on our remaining outstanding debt and hedging instruments and the related effects of ASU 2020-04 on our consolidated financial statements. ASU 2019-12 — In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ," which is intended to enhance and simplify various aspects of the accounting for income taxes. The amendments in this update remove certain exceptions to the general principles in ASC Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and amends existing guidance 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. ASU 2018-15 — In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (A Consensus of the FASB Emerging Issues Task Force)." ASU 2018-15 provides additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract. The new guidance amended the definition of a hosting arrangement and requires a customer in a hosting arrangement that is a service contract to capitalize certain implementation costs following the internal-use software capitalization criteria within ASC Subtopic 350-40. We adopted ASU 2018-15 on January 1, 2020, applying the guidance prospectively to all implementation costs incurred on or after the date of adoption. The adoption of this standard did not have a material effect on our consolidated financial statements. We have historically capitalized implementation costs associated with cloud computing arrangements that are service contracts following the guidance in Subtopic 350-40 and continue to do so pursuant to the clarifications provided in the new guidance. We amortize capitalized implementation costs to expense on a straight-line basis over the term of the applicable hosting arrangement. Our cloud computing arrangements involve services we use to support certain internal corporate functions as well as technology associated with revenue-generating activities. As of December 31, 2021 and 2020, capitalized implementation costs, net of accumulated amortization, were $72.4 million and $16.2 million, respectively, and are presented within other noncurrent assets in the consolidated balance sheets. Amortization expense for the years ended December 31, 2021 and 2020 was $3.0 million and $3.1 million, respectively, and is presented in the same line item in the consolidated statements of income as the expense for the associated cloud services arrangement. ASU 2016-13 — We adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments " on January 1, 2020 using the modified retrospective transition method. The adoption of this standard resulted in a cumulative-effect adjustment to decrease retained earnings by $5.4 million, net of tax. The amendments in this update changed how we measure and recognize credit impairment for certain financial instruments measured at amortized cost. Under the current expected credit losses model required by ASU 2016-13, we recognize at asset inception and each subsequent reporting date an estimate of credit losses expected to occur over the remaining life of each pool of financial assets with similar risk characteristics. ASU 2016-02 — ASU 2016-02 “Leases” requires recognition of assets and liabilities for the rights and obligations created by leases and new disclosures about leases. We adopted ASU 2016-02, as well as other related clarifications and interpretive guidance issued by the FASB, on January 1, 2019 using the modified retrospective transition method. Under this transition method, we did not recast the prior period financial statements presented. We elected the transition package of three practical expedients, which among other things, allowed for the carryforward of historical lease classifications. We made an accounting policy election to not recognize assets or liabilities for leases with a term of less than 12 months and to account for all components in a lease arrangement as a single combined lease component for all of our then existing asset classes. In connection with the Merger, we acquired right-of-use assets that represent an additional asset class for computer equipment, for which we account for lease and nonlease components separately. The adoption of ASU 2016-02 resulted in the measurement and recognition of lease liabilities in the amount of $274.0 million and right-of-use assets in the amount of $236.0 million as of January 1, 2019. Lease liabilities were measured as the present value of remaining lease payments, and the corresponding right-of-use assets were measured at an amount equal to the lease liabilities adjusted by the amounts of certain assets and liabilities, such as prepaid rent and deferred lease obligations, that we previously recognized on the balance sheet prior to the initial application of ASU 2016-02. To calculate the present value of remaining lease payments, we elected to use an incremental borrowing rate based on the remaining lease term at transition. Adoption did not have a material effect on any line items in our consolidated statement of income or on our cash flows from operating activities, investing activities or financing activities included in our consolidated statement of cash flows. Recently issued pronouncements not yet adopted ASU 2021-08 — In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. " Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers and other similar contracts that are accounted for in accordance with ASC Topic 606, at fair value on the acquisition date. ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with ASC Topic 606 as if it had originated the contracts, which should generally result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements. This update also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption is permitted, including adoption in an interim period. Adoption during an interim period requires retrospective application to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application. We are evaluating the potential effects of ASU 2021-08 on our consolidated financial statements. |
Revenue recognition | Revenue Recognition — At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good or service that is distinct. In accordance with ASC Topic 606, Revenues from Contracts with Customers ("ASC 606"), we recognize revenue when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these services. Merchant Solutions. Our customers in the Merchant Solutions segment contract with us for payment services, which we provide in exchange for consideration for completed transactions. Our payment solutions are similar around the world in that we enable our customers to accept card, check and digital-based payments. Our comprehensive offerings include, but are not limited to, authorization, settlement and funding services, customer support, chargeback resolution, payment security services, consolidated billing and reporting. In addition, we may sell or lease point-of-sale terminals or other equipment to customers. For our payment services, the nature of our promise to the customer is that we stand ready to process transactions the customer requests on a daily basis over the contract term. Since the timing and quantity of transactions to be processed by us is not determinable, we view payment services to comprise an obligation to stand ready to process as many transactions as the customer requests. Under a stand-ready obligation, the evaluation of the nature of our performance obligation is focused on each time increment rather than the underlying activities. Therefore, we view payment services to comprise a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. Accordingly, the promise to stand ready is accounted for as a single series performance obligation. In order to provide our payment services, we route and clear each transaction through the applicable payment network. We obtain authorization for the transaction and request funds settlement from the card issuing financial institution through the payment network. When third parties are involved in the transfer of goods or services to our customer, we consider the nature of each specific promised good or service and apply judgment to determine whether we control the good or service before it is transferred to the customer or whether we are acting as an agent of the third party. To determine whether or not we control the good or service before it is transferred to the customer, we assess indicators including which party is primarily responsible for fulfillment and which party has discretion in determining pricing for the good or service, as well as other considerations. Based on our assessment of these indicators, we have concluded that our promise to our customer to provide our payment services is distinct from the services provided by the card issuing financial institutions and payment networks in connection with payment transactions. We do not have the ability to direct the use of and obtain substantially all of the benefits of the services provided by the card issuing financial institutions and payment networks before those services are transferred to our customer, and on that basis, we do not control those services prior to being transferred to our customer. As a result, we present our revenues net of the interchange fees retained by the card issuing financial institutions and the fees charged by the payment networks. The majority of our payment services are priced as a percentage of transaction value or a specified fee per transaction, depending on the card type. We also charge other per occurrence fees based on specific services that may be unrelated to the number of transactions or transaction value. Given the nature of the promise and the underlying fees based on unknown quantities or outcomes of services to be performed over the contract term, the total consideration is determined to be variable consideration. The variable consideration for our payment service is usage-based and, therefore, it specifically relates to our efforts to satisfy our payment services performance obligation. The variability is satisfied each day the service is provided to the customer. We directly ascribe variable fees to the distinct day of service to which it relates, and we consider the services performed each day in order to ascribe the appropriate amount of total fees to that day. Therefore, we measure revenues for our payment service on a daily basis based on the services that are performed on that day. Certain of our technology-enabled customer arrangements contain multiple promises, such as payment services, perpetual software licenses, software-as-a-service ("SaaS"), maintenance, installation services, training and equipment, each of which is evaluated to determine whether it represents a separate performance obligation. SaaS arrangements are generally offered on a subscription basis, providing the customers with access to the SaaS platform along with general support and maintenance services. Because these promised services within our SaaS arrangements are delivered concurrently over the contract term, we account for these promises as if they are a single performance obligation that includes a series of distinct services with the same pattern of transfer to the customer. In addition, certain implementation services are not considered distinct from the SaaS and are recognized over the expected period of benefit. Once we determine the performance obligations and the transaction price, including an estimate of any variable consideration, we then allocate the transaction price to each performance obligation in the contract using a relative standalone selling price method. We determine standalone selling price based on the price at which the good or service is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price by considering all reasonably available information, including market conditions, trends or other company- or customer-specific factors. Substantially all of the performance obligations within our SaaS arrangements described above are satisfied over time. We satisfy the combined SaaS performance obligation by standing ready to provide access to the SaaS. Consideration for SaaS arrangements may consist of fixed or usage-based fees. Revenue is recognized over the period for which the services are provided or by directly ascribing any variable fees to the distinct day of service based on the services that are performed on that day. The performance obligations associated with equipment sales, perpetual software licenses and certain professional services are generally satisfied at a point in time when they are transferred to the customer. For certain other professional services that represent separate performance obligations, we generally use the input method and recognize revenue based on the number of hours incurred or services performed to date in relation to the total services expected to be required to satisfy the performance obligation. Issuer Solutions. Issuer Solutions segment revenues are derived from long-term contracts with financial institutions and other financial service providers. Issuer Solutions customer contracts typically include an obligation to provide processing services to financial institutions and other financial services providers. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements generated and/or mailed, managed services, cards embossed and mailed, and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual minimums, penalties for early termination, and service level agreements that may affect contractual fees if specific service levels are not achieved. We have determined that these processing services represent a stand-ready obligation comprising a series of distinct days of services that are substantially the same and have the same pattern of transfer to the customer. Issuer Solutions contracts may also include additional performance obligations relating to loyalty redemption services and other professional services. Similar to processing services, we have determined that loyalty redemption services represent a stand-ready obligation comprising a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. To the extent a contract includes multiple promised services, we must apply judgment to determine whether promised services are capable of being distinct and are distinct in the context of the contract. If these criteria for being distinct are not met, the promised services are combined and accounted for as a single performance obligation. The performance obligations to provide processing services and loyalty redemption services include variable consideration. The variable consideration for our services is usage-based and, therefore, it specifically relates to our efforts to satisfy our services performance obligation. The variability is satisfied each day the service is provided to the customer. We directly ascribe variable fees to the distinct day of service to which it relates, and we consider the services performed each day in order to ascribe the appropriate amount of total fees to that day. Therefore, we measure revenues for our services on a daily basis based on the services that are performed on that day. Professional services performance obligations are satisfied over time. For professional services, we recognize revenue based on the labor hours incurred for time and materials projects or on a straight-line basis for fixed-fee projects. In some cases, we pay certain of our customers a signing incentive at contract inception or renewal. Consideration paid to customers is accounted for as a reduction of the transaction price and recognized as a reduction in revenues as the related services are provided to the customer, typically over the contract term. The deferred portion of consideration paid to customers is classified within other assets in our consolidated balance sheets. Business and Consumer Solutions. Business and Consumer Solutions arrangements include a stand-ready performance obligation to provide account access and facilitate purchase transactions. Revenues principally consist of fees collected from cardholders and fees generated by cardholder activity in connection with the programs that we manage. Customers are typically charged a fee for each purchase transaction made using their cards, unless the customer is on a monthly or annual service plan, in which case the customer is instead charged a monthly or annual subscription fee, as applicable. Customers are also charged a monthly maintenance fee after a specified period of inactivity. We also charge fees associated with additional services offered in connection with our accounts, including the use of overdraft features, a variety of bill payment options, card replacement, foreign exchange and card-to-card transfers of funds initiated through our call centers. We have determined that we have a right to consideration from a customer in an amount that corresponds directly with our performance completed to date. As a result, we recognize revenue in the amount to which we have a right to invoice. Revenues are recognized net of fees charged by the payment networks for services they provide in processing transactions routed through them. Additionally, certain of our Business and Consumer Solutions customer arrangements provide business-to-business ("B2B") payment services, consisting of a stand-ready obligation to process financial transactions for which revenue is recognized on a daily basis based on the services that are performed on that day. Other customer contracts include subscription based SaaS arrangements that automate key procurement processes and enable virtual cards and integrated payments options, for which revenue is recognized over time on a ratable basis over the contract term beginning on the date that the services are made available to the customer. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash — Cash and cash equivalents include cash on hand and all liquid investments with a maturity of three months or less when purchased. We consider certain portions of our cash and cash equivalents to be unrestricted but not available for general purposes. The amount of cash that we consider to be available for general purposes, $894.6 million and $1,100.9 million as of December 31, 2021 and 2020, respectively, does not include the following: (i) settlement-related cash balances, (ii) funds held as collateral for merchant losses ("Merchant Reserves") and (iii) funds held for customers. Settlement-related cash balances represent funds that we hold when the incoming amount from the card networks precedes the funding obligation to the merchant. Settlement-related cash balances are not restricted in their use; however, these funds are generally paid out in satisfaction of a processing obligation the following day. Merchant Reserves serve as collateral to minimize contingent liabilities associated with any losses that may occur under the merchant agreement. We record a corresponding liability in settlement processing assets and settlement processing obligations in our consolidated balance sheet. While this cash is not restricted in its use, we believe that designating this cash as Merchant Reserves strengthens our fiduciary standing with financial institutions that sponsor us. Funds held for customers, which are not restricted in their use, include amounts collected before the corresponding obligation is due to be settled to or at the direction of our customers. |
Accounts receivable, contract assets and contract liabilities | Accounts receivable, contract assets and contract liabilities — A contract with a customer creates legal rights and obligations. As we perform under customer contracts, our right to consideration that is unconditional is considered to be accounts receivable. If our right to consideration for such performance is contingent upon a future event or satisfaction of additional performance obligations, the amount of revenues we have recognized in excess of the amount we have billed to the customer is recognized as a contract asset. Contract liabilities represent consideration received from customers in excess of revenues recognized. Contract assets and liabilities are presented net at the individual contract level in the consolidated balance sheet and are classified as current or noncurrent based on the nature of the underlying contractual rights and obligations. |
Allowance for credit losses | Allowance for credit losses — We are exposed to credit losses on accounts receivable balances. We utilize a combination of aging and loss-rate methods to develop an estimate of current expected credit losses, depending on the nature and risk profile of the underlying asset pool. A broad range of information is considered in the estimation process, including historical loss information adjusted for current conditions, the effects of COVID-19 on our customers and expectations of future trends. The estimation process also includes consideration of qualitative and quantitative risk factors associated with the age of asset balances, expected timing of payment, contract terms and conditions, changes in specific customer risk profiles or mix of customers, geographic risk, industry or economic trends and relevant environmental factors. Accounts receivable is presented net of an allowance for credit losses of $17.4 million and $20.6 million as of December 31, 2021 and 2020, respectively. The measurement of the allowance for credit losses is recognized through credit loss expense and is included as a component of selling, general and administrative expense in our consolidated statements of income. We recognized credit loss expense of $12.8 million and $23.0 million for the years ended December 31, 2021 and 2020, respectively. Write-offs are recorded in the period in which the asset is deemed to be uncollectible. Recoveries are recognized when received as a direct credit to the credit loss expense in the consolidated statements of income. Prior to the adoption of ASU 2016-13, credit losses on accounts receivable balances were recognized when an occurrence was deemed to be probable. Revenues are recognized net of estimated billing adjustments. Adjustments to customer invoices are charged against the allowance for billing adjustments. Allowance for credit and other merchant losses on settlement assets — Our merchant customers are liable for any charges or losses that occur under the merchant agreement. We have a risk of loss in our card processing services associated with the liability to collect amounts from merchant customers for any charges properly reversed by the card issuing financial institutions. We are therefore exposed to credit losses on these settlement processing assets. We utilize a combination of aging and loss-rate methods to develop an estimate of current expected credit losses, depending on the nature and risk profile of the underlying asset pool. A broad range of information is considered in the estimation process, including historical loss information adjusted for current conditions, consideration of the effects of COVID-19 on our customers and expectations of future trends. The estimation process also includes consideration of qualitative and quantitative risk factors associated with the age of asset balances, expected timing of payment, contract terms and conditions, changes in specific customer risk profiles or mix of customers, geographic risk, industry or economic trends and relevant environmental factors. We require cash deposits, guarantees, letters of credit and other types of collateral from certain merchants to minimize the risk of loss, and we also utilize a number of systems and procedures to manage merchant risk. The allowance for credit losses on settlement processing assets was $3.0 million and $6.2 million as of December 31, 2021 and 2020, respectively. The measurement of the allowance for credit losses is recognized through credit loss expense and is included as a component of cost of service in our consolidated statements of income. We recognized credit loss expense of $3.6 million and $16.8 million for the years ended December 31, 2021 and 2020, respectively. Write-offs are recognized in the period in which the asset is deemed to be uncollectible. Recoveries are recognized when received as a direct credit to the credit loss expense in the consolidated statements of income. Prior to the adoption of ASU 2016-13, credit losses were recognized when an occurrence was deemed to be probable. Additionally, when we are not able to collect these amounts from merchants due to merchant fraud, insolvency, bankruptcy or any other reason, we may be liable for the reversed charges. We record an estimated liability for merchant losses comprised of estimated incurred but not reported losses, which is included in accrued liabilities in our consolidated balance sheet. The provision for merchant losses is included as a component of cost of service in our consolidated statements of income. Allowance for credit and operating losses on check guarantee claims receivable assets — Our check guarantee business is exposed to credit losses when we are unable to collect the full amount of a guaranteed check from the checkwriter. In our check guarantee service offering, we charge our merchants a percentage of the gross amount of the check and guarantee payment of the check to the merchant in the event the check is not honored by the checkwriter's bank. We have the right to collect the full amount of the check from the checkwriter, but we have not always recovered 100% of the guaranteed checks. We recognize an allowance for estimated losses on returned checks to reduce the claims receivable balance to the amount expected to be recovered, which is determined based on recent loss history and expected future collection trends. Check guarantee claims receivable are included in prepaid expenses and other current assets in the consolidated balance sheets and are presented net of an allowance of $2.5 million and $2.1 million as of December 31, 2021 and 2020, respectively. The provision for check guarantee losses, which was approximately $10.2 million and $10.1 million for the years ended December 31, 2021 and 2020, respectively, is included as a component of cost of service in the consolidated statements of income. Reserve for contract contingencies and processing errors — A significant number of our customer contracts in our Issuer Solutions segment contain service level agreements that can result in performance penalties payable by us if we do not meet contractually required service levels. We record an accrual for estimated performance penalties and processing errors. When providing for these accruals, we consider such factors as our history of incurring performance penalties and processing errors, actual contractual penalty charge rates in our contracts, progress towards milestones and known processing errors. These accruals are included in accounts payable and accrued liabilities in our consolidated balance sheets. Depending on the nature of item, transaction processing provisions are either included as a reduction of the transaction price and recognized as a reduction in revenues as the related services are provided to the customer, or recognized as a component of cost of service, in our consolidated statements of income. Reserve for cardholder losses — |
Contract costs | Contract costs — We capitalize costs to obtain contracts with customers, including employee sales commissions and fees to business partners. At contract inception, we capitalize such costs that we expect to recover and that would not have been incurred if the contract had not been obtained. In certain instances in which costs related to obtaining customers are incurred after the inception of the customer contract, such costs are capitalized as the corresponding liability is recognized. We also capitalize certain costs incurred to fulfill our contracts with customers that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligation under the contract and (iii) are expected to be recovered through revenues generated under the contract. Capitalized costs to obtain and to fulfill contracts are included in other noncurrent assets. three |
Up-front distributor and partner payments | Up-front distributor and partner payments — We capitalize certain up-front contractual payments to third-party distributors and partners and recognize the capitalized amount as expense ratably over the period of benefit, which is generally the contract period. If the contract requires the distributor or partner to perform specific acts and no other conditions exist for the distributor or partner to earn or retain the up-front payment, then we recognize the capitalized amount as an expense when the performance conditions have been met. Up-front distributor and partner payments are classified in our consolidated balance sheets within prepaid expenses and other current assets and other noncurrent assets and the related expense is reported within selling, general and administrative expenses in our consolidated statements of income. |
Settlement processing assets and obligations | Settlement processing assets and obligations — Funds settlement refers to the process in our Merchant Solutions segment of transferring funds between card issuers and merchants for merchant sales and credits processed on our systems. We use our internal network to provide funding instructions to financial institutions that in turn fund the merchants. We process funds settlement under two models, a sponsorship model and a direct membership model. Under the sponsorship model, we are designated as an independent sales organization by Mastercard and Visa, which means that member clearing banks ("Member") sponsor us and require our adherence to the standards of the payment networks. In certain markets, we have sponsorship or depository and clearing agreements with financial institution sponsors. These agreements allow us to route transactions under the Members' control and identification numbers to clear credit card transactions through Mastercard and Visa. In this model, the standards of the payment networks restrict us from performing funds settlement or accessing merchant settlement funds, and, instead, require that these funds be in the possession of the Member until the merchant is funded. Under the direct membership model, we are members in various payment networks, allowing us to process and fund transactions without third-party sponsorship. In this model, we route and clear transactions directly through the card brand’s network and are not restricted from performing funds settlement. Otherwise, we process these transactions similarly to how we process transactions in the sponsorship model. We are required to adhere to the standards of the payment networks in which we are direct members. We maintain relationships with financial institutions, which may also serve as our Member sponsors for other card brands or in other markets, to assist with funds settlement. Timing differences, interchange fees, merchant reserves and exception items cause differences between the amount received from the payment networks and the amount funded to the merchants. These intermediary balances arising in our settlement process are reflected as settlement processing assets and obligations in our consolidated balance sheets. Settlement processing assets and obligations include the following components: • Interchange reimbursement . Our receivable from merchants for the portion of the discount fee related to reimbursement of the interchange fee. • Receivable from Members. Our receivable from the Members for transactions in which we have advanced funding to the Members to fund merchants in advance of receipt of funding from payment networks. • Receivable from networks . Our receivable from a payment network for transactions processed on behalf of merchants where we are a direct member of that particular network. • Exception items . Items such as customer chargeback amounts received from merchants. • Merchant Reserves . Reserves held to minimize contingent liabilities associated with losses that may occur under the merchant agreement. • Liability to Members . Our liability to the Members for transactions that have not yet been funded to the merchants. • Liability to merchants . Our liability to merchants for transactions that have been processed but not yet funded where we are a direct member of a particular payment network. • Allowance for credit and other merchant losses on settlement assets. Allowances, charges or expected credit losses on chargebacks, merchant fraud or other merchant-related reason. We apply offsetting to our settlement processing assets and obligations where a right of setoff exists. In the sponsorship model, we apply offsetting by Member agreement because the Member is ultimately responsible for funds settlement. With these Member transactions, we do not have access to the gross proceeds of the receivable from the payment networks and, thus, do not have a direct obligation or any ability to satisfy the payable to fund the merchant. In these situations, we apply offsetting to determine a net position for each Member agreement. If that net position is an asset, we reflect the net amount in settlement processing assets in our consolidated balance sheet. If that net position is a liability, we reflect the net amount in settlement processing obligations in our consolidated balance sheet. In the direct membership model, offsetting is not applied, and the individual components are presented as an asset or obligation based on the nature of that component. |
Property and equipment | Property and equipment — Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are generally calculated using the straight-line method. Leasehold improvements are amortized over the lesser of the remaining term of the lease and the useful life of the asset. |
Software | We develop software that is used to provide services to customers. Capitalization of internal-use software, primarily associated with operating platforms, occurs when we have completed the preliminary project stage, management authorizes the project, management commits to funding the project, it is probable the project will be completed and the project will be used to perform the function intended. The preliminary project stage consists of the conceptual formulation of alternatives, the evaluation of alternatives, the determination of existence of needed technology and the final selection of alternatives. Costs incurred during the preliminary project stage are recognized as expense as incurred. Capitalized internal-use software is amortized over its estimated useful life, which is typically five |
Goodwill and Other intangible assets | Goodwill — We perform our annual goodwill impairment test as of October 1 each year. We test goodwill for impairment at the reporting unit level annually and more often if an event occurs or circumstances change that indicate the fair value of a reporting unit is below its carrying amount. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative assessment for impairment is necessary. The option of whether or not to perform a qualitative assessment is made annually and may vary by reporting unit. Factors we consider in the qualitative assessment include general macroeconomic conditions, industry and market conditions, cost factors, overall financial performance of our reporting units, events or changes affecting the composition or carrying amount of the net assets of our reporting units, sustained decrease in our share price, and other relevant entity-specific events. If we elect to bypass the qualitative assessment or if we determine, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, a quantitative test would be required. The quantitative assessment compares the estimated fair value of the reporting unit to its carrying amount, and recognizes an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. When applying the quantitative assessment, we determine the fair value of our reporting units based on a weighted average of multiple valuation techniques, principally a combination of an income approach and a market approach. The income approach calculates a value based upon the present value of estimated future cash flows, while the market approach uses earnings multiples of similarly situated guideline public companies. Determining the fair value of a reporting unit involves judgment and the use of significant estimates and assumptions, which include assumptions regarding the revenue growth rates and operating margins used to calculate estimated future cash flows, risk-adjusted discount rates and future economic and market conditions. Our reporting units consist of the following: North America Payment Solutions, Integrated Solutions, Vertical Market Software Solutions, Europe Merchant Solutions, Spain Merchant Solutions, Asia-Pacific Merchant Solutions, Issuer Solutions and Business and Consumer Solutions. As of October 1, 2021, we performed a quantitative assessment of impairment for our Vertical Market Software Solutions, Issuer Solutions and Business and Consumer Solutions reporting units and a qualitative assessment for all other reporting units. We determined on the basis of the quantitative assessments of our Vertical Market Software Solutions, Issuer Solutions and Business and Consumer Solutions reporting units that the fair value of each reporting unit is greater than its respective carrying amount. Additionally, we determined on the basis of the qualitative factors that the fair value of other reporting units was not more likely than not less than the respective carrying amounts. Our current year assessments also included consideration of the expected near term effects of the COVID-19 pandemic on revenues and our cost mitigation efforts, as well as longer term performance expectations. Other intangible assets — Other intangible assets include customer-related intangible assets (such as customer lists, merchant contracts and referral agreements), contract-based intangible assets (such as noncompete agreements, distributor agreements and processing rights), acquired technologies, trademarks and trade names associated with business combinations. These assets are amortized over their estimated useful lives. The useful lives for customer-related intangible assets are determined based primarily on forecasted cash flows, which include estimates for the revenues, expenses, and customer attrition associated with the assets. The useful lives of contract-based intangible assets are equal to the terms of the agreements. The useful lives of acquired technologies are based on an estimate of the period over which we expect to receive economic benefit. The useful lives of amortizable trademarks and trade names are based on an estimate of the period over which we will earn revenues for the related brands, including contemplation of any future plans to use the trademarks and trade names in the applicable markets. |
Leases | Leases — |
Impairment of long-lived assets | Impairment of long-lived assets — We regularly evaluate whether events and circumstances have occurred that indicate the carrying amount of property and equipment, lease right-of-use assets and finite-life intangible assets may not be recoverable. When factors indicate that these long-lived assets should be evaluated for possible impairment, we assess the |
Equity method investments | Equity method investments — We have certain investments, including a 45% interest in China UnionPay Data Co., Ltd. that we account for using the equity method of accounting. Equity method investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments. |
Income taxes | Income taxes — Deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax laws and rates. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. We periodically assess our tax exposures related to periods that are open to examination. Based on the latest available information, we evaluate our tax positions to determine whether the position will more likely than not be sustained upon examination by the U.S. Internal Revenue Service or other taxing authorities. If we do not reach a more-likely-than-not determination, no benefit is recognized. If we determine that the tax position is more likely than not to be sustained, we recognize the largest amount of benefit that is more likely than not to be realized when the tax position is settled. We present interest and penalties related to unrecognized income tax benefits in interest and selling, general and administrative expenses, respectively, in our consolidated statements of income. |
Derivative instruments | Derivative instruments — We may use interest rate swaps or other derivative instruments to manage a portion of our exposure to the variability in interest rates. Our objective in managing our exposure to fluctuation in interest rates is to better control this element of cost and to mitigate the earnings and cash flow volatility associated with changes in applicable rates. We have established policies and procedures that encompass risk-management philosophy and objectives, guidelines for derivative instrument usage, counterparty credit approval, and the monitoring and reporting of derivative activity. We do not use derivative instruments for speculation. At inception, we formally designate and document instruments that qualify for hedge accounting of underlying exposures. When qualified for hedge accounting, these financial instruments are recognized at fair value in our consolidated balance sheets, and changes in fair value are recognized as a component of other comprehensive income (loss) and included in accumulated other comprehensive loss within equity in our consolidated balance sheets. Cash flows resulting from settlements are presented as a component of cash flows from operating activities within our consolidated statements of cash flows. We formally assess, both at inception and at least quarterly, whether the financial instruments used in hedging transactions are effective at offsetting changes in cash flows of the related underlying exposure. Fluctuations in the value of these instruments generally are offset by changes in the forecasted cash flows of the underlying exposures being hedged. This offset is driven by the high degree of effectiveness between the exposure being hedged and the hedging instrument. We designated each of our active interest rate swap agreements as a cash flow hedge of interest payments on variable rate borrowings. See "Note 8 — Long-Term Debt and Lines of Credit" for more information about our interest rate swaps. |
Fair value measurements | Fair value measurements — Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. GAAP establishes a fair value hierarchy that categorizes the inputs to valuation techniques into three broad levels. Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities. Level 2 inputs are based on other observable market data, such as quoted prices for similar assets and liabilities, and inputs other than quoted prices that are observable such as interest rates and yield curves. Level 3 inputs are developed from unobservable data reflecting our assumptions and include situations where there is little or no market activity for the asset or liability. |
Fair value of financial instruments | Fair value of financial instruments — The carrying amounts of cash and cash equivalents, restricted cash, receivables, settlement lines of credit, accounts payable and accrued liabilities, approximate their fair value given the short-term nature of these items. 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. Certain of our long-term debt arrangements include variable interest rates. The carrying amount of long-term debt with variable interest rates, exclusive of debt issuance costs, approximated fair value, which is calculated using Level 2 inputs. The fair values of our swap agreements 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, and classified within Level 2 of the valuation hierarchy. See "Note 8 — Long-Term Debt and Lines of Credit" for further information. |
Foreign currencies | Foreign currencies — We have significant operations in a number of foreign subsidiaries whose functional currency is the local currency. The assets and liabilities of subsidiaries whose functional currency is a foreign currency are translated into the reporting currency at the period-end rate of exchange. Income statement items are translated at the weighted-average rates prevailing during the period. The resulting translation adjustment is presented as a component of other comprehensive income and is included in accumulated comprehensive income within equity in our consolidated balance sheets. Gains and losses on transactions denominated in currencies other than the functional currency are generally included in determining net income for the period. For the years ended December 31, 2021, 2020 and 2019, our transaction gains and losses were insignificant. Transaction gains and losses on intercompany balances of a long-term investment nature are presented as a component of other comprehensive income and included in accumulated comprehensive income within equity in our consolidated balance sheets. |
Earnings per share | Earnings per share — Basic earnings per share ("EPS") is computed by dividing reported net income attributable to Global Payments by the weighted-average number of shares outstanding during the period. Earnings available to common shareholders is the same as reported net income attributable to Global Payments for all periods presented. |
Repurchased shares | Repurchased shares — We account for the retirement of repurchased shares using the par value method under which the repurchase price is charged to paid-in capital up to the amount of the original issue proceeds of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. We use a last-in, first-out cost flow assumption to identify the original issue proceeds of the shares repurchased. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | A reconciliation of the amounts of cash and cash equivalents and restricted cash in the consolidated balance sheets to the amount in the consolidated statements of cash flows is as follows: December 31, 2021 2020 (in thousands) Cash and cash equivalents $ 1,979,308 $ 1,945,868 Restricted cash 143,715 143,903 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 2,123,023 $ 2,089,771 |
Schedule of Restricted Cash | A reconciliation of the amounts of cash and cash equivalents and restricted cash in the consolidated balance sheets to the amount in the consolidated statements of cash flows is as follows: December 31, 2021 2020 (in thousands) Cash and cash equivalents $ 1,979,308 $ 1,945,868 Restricted cash 143,715 143,903 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 2,123,023 $ 2,089,771 |
Schedule of Weighted Average Number of Shares Outstanding | The following table sets forth the computation of the diluted weighted-average number of shares outstanding for all periods presented: Years Ended December 31, 2021 2020 2019 (in thousands) Basic weighted-average number of shares outstanding 292,655 299,222 198,298 Plus: Dilutive effect of stock options and other share-based awards 1,014 1,294 836 Diluted weighted-average number of shares outstanding 293,669 300,516 199,134 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Acquisition [Line Items] | |
Schedule of Pro Forma Information | Year Ended Actual Pro Forma (in thousands) Total revenues $ 4,911,892 $ 7,854,282 Net income attributable to Global Payments $ 430,613 $ 711,658 |
Zego | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, are as follows: Provisional Amounts at Acquisition Date Measurement-Period Adjustments Provisional Amounts at December 31, 2021 (in thousands) Cash and cash equivalents $ 67,374 $ — $ 67,374 Accounts receivable 1,033 (16) 1,017 Identifiable intangible assets 410,443 62,557 473,000 Property and equipment 3,634 (3,059) 575 Other assets 9,141 (90) 9,051 Accounts payable and accrued liabilities (65,753) (5,253) (71,006) Deferred income tax liabilities (10,709) (3,193) (13,902) Other liabilities (8,268) 258 (8,010) Total identifiable net assets 406,895 51,204 458,099 Goodwill 525,929 (50,782) 475,147 Total purchase consideration $ 932,824 $ 422 $ 933,246 |
Schedule of Fair Values of Identified Intangible Assets Acquired and Respective Weighted-Average Estimated Amortization Periods | The following table reflects the provisional estimated fair values of the identified intangible assets of Zego and the respective weighted-average estimated amortization periods: Estimated Fair Value Weighted-Average Estimated Amortization Periods (in thousands) (years) Customer-related intangible assets $ 208,000 13 Contract-based intangible assets 119,000 20 Acquired technologies 124,000 6 Trademarks and trade names 22,000 15 Total estimated identifiable intangible assets $ 473,000 14 |
Total System Services, Inc. | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, were as follows (in thousands): Provisional Amounts at December 31, 2019 Measurement- Period Adjustments Final (in thousands) Cash and cash equivalents $ 446,009 $ — $ 446,009 Accounts receivable 442,848 (2,660) 440,188 Identified intangible assets 10,980,000 978 10,980,978 Property and equipment 644,084 (978) 643,106 Other assets 1,474,825 (2,969) 1,471,856 Accounts payable and accrued liabilities (614,060) (11,899) (625,959) Debt (3,295,342) 4,787 (3,290,555) Deferred income tax liabilities (2,687,849) 52,598 (2,635,251) Other liabilities (314,415) (173) (314,588) Total identifiable net assets 7,076,100 39,684 7,115,784 Goodwill 17,398,853 (39,684) 17,359,169 Total purchase consideration $ 24,474,953 $ — $ 24,474,953 |
Schedule of Fair Values of Identified Intangible Assets Acquired and Respective Weighted-Average Estimated Amortization Periods | The following table reflects the estimated fair values of the identified intangible assets of TSYS and the respective weighted-average estimated amortization periods: Estimated Fair Values Weighted-Average Estimated Amortization Periods (in thousands) (years) Customer-related intangible assets $ 6,420,000 15 Contract-based intangible assets 1,800,000 18 Acquired technologies 1,810,000 7 Trademarks and trade names 950,000 11 Total estimated identified intangible assets $ 10,980,000 13 |
Schedule of Total Purchase Consideration | The fair value of total purchase consideration was determined as follows (in thousands, except per share data): Shares of TSYS common stock issued and outstanding (including Single-Trigger Awards) 177,643 Exchange Ratio 0.8101 Shares of Global Payments common stock issued to TSYS shareholders 143,909 Price per share of Global Payments common stock $ 163.74 Fair value of common stock issued to TSYS shareholders (1) 23,563,568 Value of Replacement Awards attributable to purchase consideration 207,821 Cash paid to TSYS shareholders in lieu of fractional shares 1,352 Total purchase consideration transferred to TSYS shareholders 23,772,741 Repayment of TSYS' unsecured revolving credit facility (including accrued interest and fees) 702,212 Total purchase consideration $ 24,474,953 (1) Fair value of common stock issued to TSYS shareholders does not equal the product of shares of Global Payments common stock issued to TSYS shareholders and price per share of Global Payments common stock as presented in the table above due to the rounding of the number of shares in thousands. |
Schedule of Pro Forma Information | Year Ended Actual Pro Forma (in thousands) Total revenues $ 4,911,892 $ 7,854,282 Net income attributable to Global Payments $ 430,613 $ 711,658 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 Merchant Solutions Issuer Solutions Business and Consumer Solutions Intersegment Revenues Total (in thousands) Americas $ 4,735,505 $ 1,559,177 $ 872,254 $ (69,011) $ 7,097,925 Europe 684,760 481,596 14,000 — 1,180,356 Asia Pacific 245,292 25,198 189 (25,198) 245,481 $ 5,665,557 $ 2,065,971 $ 886,443 $ (94,209) $ 8,523,762 Year Ended December 31, 2020 Merchant Solutions Issuer Solutions Business and Consumer Solutions Intersegment Revenues Total (in thousands) Americas $ 3,948,642 $ 1,525,122 $ 825,564 $ (65,991) $ 6,233,337 Europe 539,839 446,587 3,941 — 990,367 Asia Pacific 199,854 9,726 — (9,726) 199,854 $ 4,688,335 $ 1,981,435 $ 829,505 $ (75,717) $ 7,423,558 Year Ended December 31, 2019 Merchant Solutions Issuer Solutions Business and Consumer Solutions Intersegment Revenues Total (in thousands) Americas $ 3,240,233 $ 458,289 $ 227,440 $ (18,782) $ 3,907,180 Europe 614,747 146,365 — — 761,112 Asia Pacific 243,600 — — — 243,600 $ 4,098,580 $ 604,654 $ 227,440 $ (18,782) $ 4,911,892 The following table presents a disaggregation of our Merchant Solutions segment revenues by distribution channel for the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 (in thousands) Relationship-led $ 3,031,873 $ 2,600,440 $ 2,218,559 Technology-enabled 2,633,684 2,087,895 1,880,021 $ 5,665,557 $ 4,688,335 $ 4,098,580 |
Schedule of Contracts with Customers | Supplemental balance sheet information related to contracts from customers as of December 31, 2021 and 2020 was as follows: Balance Sheet Location December 31, 2021 December 31, 2020 (in thousands) Assets: Capitalized costs to obtain customer contracts, net Other noncurrent assets $ 291,914 $ 253,780 Capitalized costs to fulfill customer contracts, net Other noncurrent assets 113,366 81,371 Liabilities: Contract liabilities, net (current) Accounts payable and accrued liabilities 227,783 217,938 Contract liabilities, net (noncurrent) Other noncurrent liabilities 44,502 52,944 |
Schedule 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 December 31, 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, 2022 $ 977,500 2023 803,671 2024 547,963 2025 429,303 2026 333,970 2027 and thereafter 519,539 Total $ 3,611,946 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | As of December 31, 2021 and 2020, property and equipment consisted of the following: Range of Depreciable Lives 2021 2020 (Years) (in thousands) Software 5-10 $ 1,309,160 $ 1,144,230 Equipment 3-20 778,533 679,686 Buildings 40 195,088 208,264 Leasehold improvements 5-15 132,529 131,790 Furniture and fixtures 5-10 78,364 63,542 Land 12,126 13,751 2,505,800 2,241,263 Less accumulated depreciation and amortization (1,196,623) (900,438) Work-in-progress 378,409 237,707 $ 1,687,586 $ 1,578,532 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | As of December 31, 2021 and 2020, goodwill and other intangible assets consisted of the following: 2021 2020 (in thousands) Goodwill $ 24,813,274 $ 23,871,451 Other intangible assets: Customer-related intangible assets $ 9,694,083 $ 9,275,093 Acquired technologies 2,962,154 2,795,991 Contract-based intangible assets 2,258,676 1,981,260 Trademarks and trade names 1,271,302 1,239,925 16,186,215 15,292,269 Less accumulated amortization: Customer-related intangible assets 2,587,586 1,914,214 Acquired technologies 1,367,513 960,281 Contract-based intangible assets 180,975 120,631 Trademarks and trade names 416,432 281,260 4,552,506 3,276,386 $ 11,633,709 $ 12,015,883 |
Schedule of Goodwill | The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the years ended December 31, 2021, 2020 and 2019: Merchant Solutions Issuer Solutions Business and Consumer Solutions Total (in thousands) Balance at December 31, 2018 $ 6,309,526 $ 31,829 $ — $ 6,341,355 Goodwill acquired 7,095,167 7,945,029 2,358,657 17,398,853 Effect of foreign currency translation 10,030 8,873 — 18,903 Measurement-period adjustments 629 — — 629 Balance at December 31, 2019 13,415,352 7,985,731 2,358,657 23,759,740 Goodwill acquired 80,152 — — 80,152 Effect of foreign currency translation 54,548 14,182 — 68,730 Measurement-period adjustments (1,362) (42,297) 6,488 (37,171) Balance at December 31, 2020 13,548,690 7,957,616 2,365,145 23,871,451 Goodwill acquired 557,044 — 431,797 988,841 Effect of foreign currency translation (36,192) (3,163) (1,663) (41,018) Measurement-period adjustments (5,860) — (140) (6,000) Balance at December 31, 2021 $ 14,063,682 $ 7,954,453 $ 2,795,139 $ 24,813,274 |
Schedule of Expected Amortization Expense | The estimated amortization expense of acquired intangibles as of December 31, 2021 for the next five years, calculated using the currency exchange rate at the date of acquisition, if applicable, is as follows (in thousands): 2022 $ 1,295,054 2023 1,226,690 2024 1,173,996 2025 1,110,748 2026 979,483 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Assets and Lease Liabilities | As of December 31, 2021 and 2020, right-of-use assets and lease liabilities consisted of the following: Balance Sheet Location December 31, 2021 December 31, 2020 (in thousands) Assets: Operating lease right-of-use assets: Real estate Other noncurrent assets $ 404,453 $ 425,376 Computer equipment Other noncurrent assets 88,431 54,959 Other Other noncurrent assets 1,198 862 Total operating lease right-of-use-assets $ 494,082 $ 481,197 Finance lease right-of-use assets: Computer equipment Property and equipment, net $ 24,720 $ 26,737 Other equipment Property and equipment, net 55,953 45,560 Other Property and equipment, net 4,608 4,260 85,281 76,557 Less accumulated depreciation: Computer equipment Property and equipment, net (11,107) (6,602) Other equipment Property and equipment, net (19,914) (8,628) Other Property and equipment, net (344) (869) Total accumulated depreciation (31,365) (16,099) Total finance lease right-of-use assets 53,916 60,458 Total right-of-use assets (1) $ 547,998 $ 541,655 Liabilities: Operating lease liabilities (current) Accounts payable and accrued liabilities $ 103,554 $ 103,706 Operating lease liabilities (noncurrent) Other noncurrent liabilities 550,726 448,016 Finance lease liabilities (current) Current portion of long-term debt 19,905 18,217 Finance lease liabilities (noncurrent) Long-term debt 44,516 57,772 Total lease liabilities $ 718,701 $ 627,711 (1) As of December 31, 2021 and 2020, approximately 75% and 72% of our right-of-use assets were located in the United States. |
Schedule of Maturities of Operating Lease Liabilities | As of December 31, 2021, maturities of lease liabilities were as follows: Operating Leases Finance Leases (in thousands) Year ending December 31, 2022 $ 129,762 $ 25,060 2023 111,749 20,460 2024 106,834 18,061 2025 79,220 4,701 2026 60,828 317 2027 and thereafter 264,535 — Total lease payments (1) 752,928 68,599 Imputed interest (98,648) (4,178) Total lease liabilities $ 654,280 $ 64,421 (1) Total operating lease payments do not include approximately $24.2 million for operating leases that had not yet commenced at December 31, 2021. We expect the lease commencement dates for these leases to occur in 2022. |
Schedule of Maturities of Finance Lease Liabilities | As of December 31, 2021, maturities of lease liabilities were as follows: Operating Leases Finance Leases (in thousands) Year ending December 31, 2022 $ 129,762 $ 25,060 2023 111,749 20,460 2024 106,834 18,061 2025 79,220 4,701 2026 60,828 317 2027 and thereafter 264,535 — Total lease payments (1) 752,928 68,599 Imputed interest (98,648) (4,178) Total lease liabilities $ 654,280 $ 64,421 (1) Total operating lease payments do not include approximately $24.2 million for operating leases that had not yet commenced at December 31, 2021. We expect the lease commencement dates for these leases to occur in 2022. |
LONG-TERM DEBT AND LINES OF C_2
LONG-TERM DEBT AND LINES OF CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | As of December 31, 2021 and 2020, long-term debt consisted of the following: December 31, 2021 December 31, 2020 (in thousands) Long-term Debt 3.800% senior notes due April 1, 2021 $ — $ 752,199 3.750% senior notes due June 1, 2023 557,186 562,258 4.000% senior notes due June 1, 2023 559,338 565,930 1.500% senior notes due November 15, 2024 497,185 — 2.650% senior notes due February 15, 2025 994,797 993,110 1.200% senior notes due March 1, 2026 1,092,016 — 4.800% senior notes due April 1, 2026 798,024 809,324 2.150% senior notes due January 15, 2027 743,695 — 4.450% senior notes due June 1, 2028 478,194 482,588 3.200% senior notes due August 15, 2029 1,238,006 1,236,424 2.900% senior notes due May 15, 2030 990,196 989,025 2.900% senior notes due November 15, 2031 741,716 — 4.150% senior notes due August 15, 2049 740,146 739,789 Unsecured term loan facility 1,989,793 1,985,776 Unsecured revolving credit facility — 36,000 Finance lease liabilities 64,421 75,989 Other borrowings 8,601 65,352 Total long-term debt 11,493,314 9,293,764 Less current portion 78,505 827,357 Long-term debt, excluding current portion $ 11,414,809 $ 8,466,407 |
Schedule of Maturities of Long-Term Debt | At December 31, 2021, future maturities of long-term debt (excluding finance lease liabilities) are as follows by year (in thousands): Year ending December 31, 2022 $ 58,600 2023 1,300,000 2024 2,250,000 2025 1,000,000 2026 1,850,000 2027 and thereafter 4,950,000 Total $ 11,408,600 |
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. 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 December 31, 2021 and classified within Level 2 of the valuation hierarchy. Weighted-Average Fixed Rate of Interest at Range of Maturity Dates at Fair Value Derivative Financial Instruments Balance Sheet Location December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2020 (in thousands) Interest rate swaps (Notional of $1,250.0 million at December 31, 2021 and $300.0 million at December 31, 2020) Accounts payable & accrued liabilities 2.73% December 31, 2022 $ 28,777 $ 1,330 Interest rate swaps (Notional of $1,250 million at December 31, 2020) Other noncurrent liabilities N/A N/A $ — $ 65,490 |
Schedule of Effects of Derivatives on Consolidated Statements of Income and Comprehensive Income | The table below presents the effects of our interest rate swaps on the consolidated statements of income and statements of comprehensive income for the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 (in thousands) Net unrealized gains (losses) recognized in other comprehensive loss $ 3,425 $ (52,742) $ (90,238) Net unrealized losses reclassified out of other comprehensive loss to interest expense $ 40,094 $ 36,510 $ 2,257 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | As of December 31, 2021 and 2020, accounts payable and accrued liabilities consisted of the following: 2021 2020 (in thousands) Funds held for customers $ 775,852 $ 645,863 Trade accounts payable 262,014 128,721 Contract liabilities 227,783 217,938 Payment network fees 187,665 166,880 Compensation and benefits 184,580 194,090 Operating lease liabilities 103,554 103,706 Third-party commissions 88,109 74,391 Audit and legal 82,108 44,146 Miscellaneous taxes and withholdings 68,323 68,048 Interest 64,591 62,865 Income taxes payable 51,818 13,517 Unclaimed property 34,744 32,497 Interest rate swap liabilities 28,777 1,330 Third-party processing fees 27,345 24,619 Current portion of accrued buyout liability (1) 22,204 16,180 Settlement of common share repurchases — 20,000 Other 332,789 246,593 $ 2,542,256 $ 2,061,384 (1) The noncurrent portion of accrued buyout liability of $44.6 million and $30.7 million is included in other noncurrent liabilities in the consolidated balance sheets as of December 31, 2021 and 2020, respectively. |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The income tax expense for the years ended December 31, 2021, 2020 and 2019 consisted of the following: Years Ended December 31, 2021 2020 2019 (in thousands) Current income tax expense (benefit): Federal $ 195,804 $ 124,176 $ 50,048 State 58,772 35,840 29,788 Foreign 103,781 82,456 90,895 358,357 242,472 170,731 Deferred income tax expense (benefit): Federal (178,666) (151,824) (79,813) State (18,500) (20,607) (29,326) Foreign 7,843 7,112 598 (189,323) (165,319) (108,541) $ 169,034 $ 77,153 $ 62,190 |
Schedule of Income before Income Tax, Domestic and Foreign | The following table presents income before income taxes for the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 (in thousands) United States $ 537,586 $ 194,190 $ 60,000 Foreign 506,959 399,766 457,925 $ 1,044,545 $ 593,956 $ 517,925 |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rates for the years ended December 31, 2021, 2020 and 2019 differ from the federal statutory rate for those periods as follows: Years Ended December 31, 2021 2020 2019 Federal U.S. statutory rate 21.0 % 21.0 % 21.0 % Foreign interest income not subject to tax (4.2) (4.2) (4.5) Tax credits (3.8) (5.3) (3.9) State income taxes, net of federal income tax benefit 3.4 0.7 1.0 Foreign-derived intangible income deduction (1.9) (2.8) (2.7) Valuation allowance (1.7) (0.1) 4.6 Nondeductible executive compensation 1.0 1.7 1.0 Equity method investment partnership income 0.9 1.1 — Uncertain tax positions (0.3) 1.1 (2.6) Foreign income taxes 0.3 0.6 (0.7) Share-based compensation expense (0.2) (2.7) (2.5) Other 1.7 1.9 1.3 Effective tax rate 16.2 % 13.0 % 12.0 % |
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2021 and 2020, principal components of deferred tax items were as follows: 2021 2020 (in thousands) Deferred income tax assets: Lease liabilities $ 130,328 $ 105,959 Foreign net operating loss carryforwards 104,499 107,931 Credit carryforwards 49,875 42,637 Accrued expenses 42,839 38,521 Financial instruments 37,928 60,340 Share-based compensation expense 36,086 41,558 Domestic net operating loss carryforwards 29,806 18,952 Other 42,945 58,107 474,306 474,005 Valuation allowance (112,259) (132,531) 362,047 341,474 Deferred tax liabilities: Acquired intangibles 2,580,489 2,736,300 Property and equipment 261,764 248,375 Partnership interests 136,022 100,951 Right-of-use assets 94,739 89,734 Other 70,343 106,877 3,143,357 3,282,237 Net deferred income tax liability $ 2,781,310 $ 2,940,763 The net deferred income taxes reflected in our consolidated balance sheets as of December 31, 2021 and 2020 are as follows: 2021 2020 (in thousands) Noncurrent deferred income tax asset $ (12,117) $ (7,627) Noncurrent deferred income tax liability 2,793,427 2,948,390 Net deferred income tax liability $ 2,781,310 $ 2,940,763 |
Summary of Valuation Allowance | Changes to our valuation allowance during the years ended December 31, 2021, 2020 and 2019 are summarized below (in thousands): Balance at December 31, 2018 $ (23,390) Allowance for foreign net operating loss carryforwards (26,439) Allowance for foreign credit carryforwards (15,226) Allowance for state credit carryforwards (6,680) Allowance for domestic net operating loss carryforwards (307) Balance at December 31, 2019 (72,042) Allowance for foreign net operating loss carryforwards (63,113) Allowance for foreign credit carryforwards (2,486) Allowance for state credit carryforwards 2,932 Allowance for domestic net operating loss carryforwards 2,178 Balance at December 31, 2020 (132,531) Allowance for foreign net operating loss carryforwards 5,804 Allowance for foreign credit carryforwards 12,656 Allowance for state credit carryforwards (1,995) Allowance for domestic net operating loss carryforwards 3,807 Balance at December 31, 2021 $ (112,259) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amounts of unrecognized income tax benefits, excluding penalties and interest, for the years ended December 31, 2021, 2020 and 2019 is as follows: Years Ended December 31, 2021 2020 2019 (in thousands) Balance at the beginning of the year $ 39,408 $ 29,671 $ 21,197 Additions related to acquisitions 387 3,186 22,283 Reductions for income tax positions of prior years (10,875) (5,408) (14,235) Settlements with income tax authorities (2,137) (909) (2,583) Additions for income tax positions of prior years 2,289 7,968 1,803 Additions based on income tax positions related to the current year 5,833 4,900 1,206 Balance at the end of the year $ 34,905 $ 39,408 $ 29,671 |
SHAREHOLDERS_ EQUITY (Tables)
SHAREHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Shares Repurchased and Retired | Information about shares repurchased and retired was as follows for the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 (in thousands, except per share amounts) Number of shares repurchased and retired 15,169 3,304 2,328 Cost of shares repurchased, including commissions $ 2,513,629 $ 633,948 $ 324,583 Average cost per share $ 165.72 $ 191.87 $ 139.42 |
SHARE-BASED AWARDS AND OPTIONS
SHARE-BASED AWARDS AND OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | The following table summarizes share-based compensation expense and the related income tax benefit recognized for our share-based awards and stock options: Years Ended December 31, 2021 2020 2019 (in thousands) Share-based compensation expense $ 180,779 $ 148,792 $ 89,634 Income tax benefit $ 42,870 $ 33,530 $ 20,519 |
Schedule of Changes in Unvested Restricted Stock Awards and Performance Units | The following table summarizes the changes in unvested restricted stock awards and performance units for the years ended December 31, 2021, 2020 and 2019: Shares Weighted-Average (in thousands) Unvested at December 31, 2018 1,084 $108.51 Replacement Awards 894 163.74 Granted 784 142.26 Vested (781) 105.04 Forfeited (137) 124.30 Unvested at December 31, 2019 1,844 149.96 Granted 607 191.20 Vested (835) 128.91 Forfeited (70) 168.40 Unvested at December 31, 2020 1,546 176.71 Granted 1,465 192.19 Vested (1,263) 154.06 Forfeited (108) 181.61 Unvested at December 31, 2021 1,640 $184.90 |
Schedule of Changes in Stock Option Activity | The following table summarizes changes in stock option activity for the years ended December 31, 2021, 2020 and 2019: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at December 31, 2018 598 $59.16 6.2 $27.3 Replacement Awards 1,336 68.96 Granted 109 128.22 Forfeited (23) 110.13 Exercised (265) 33.99 28.8 Outstanding at December 31, 2019 1,755 74.06 6.5 190.3 Granted 124 200.42 Forfeited (3) 112.85 Exercised (623) 59.78 85.8 Outstanding at December 31, 2020 1,253 93.66 6.3 152.6 Granted 112 196.06 Forfeited (1) 113.48 Exercised (192) 68.42 24.1 Outstanding at December 31, 2021 1,172 $107.44 5.8 $47.4 Options vested and exercisable at December 31, 2021 897 $86.80 5.1 $46.1 |
Schedule of Fair Valuation Assumptions | Fair value was estimated on the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions: Years Ended December 31, 2021 2020 2019 Risk-free interest rate 0.59 % 1.24 % 1.72 % Expected volatility 40 % 30 % 31 % Dividend yield 0.44 % 0.39 % 0.04 % Expected term (years) 5 5 5 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Disclosures | Supplemental cash flow disclosures for the years ended December 31, 2021, 2020 and 2019 are as follows: Years Ended December 31, 2021 2020 2019 (in thousands) Income taxes paid, net of refunds $ 295,534 $ 308,620 $ 146,739 Interest paid $ 335,481 $ 343,213 $ 206,562 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of Net Income Reconciliation | The following table presents the reconciliation of net income attributable to noncontrolling interests to comprehensive income attributable to noncontrolling interests for the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 (in thousands) Net income attributable to noncontrolling interests $ 22,404 $ 20,580 $ 38,663 Foreign currency translation attributable to noncontrolling interests (10,281) 14,643 (2,725) Comprehensive income attributable to noncontrolling interests $ 12,123 $ 35,223 $ 35,938 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the accumulated balances for each component of other comprehensive income (loss) were as follows for the years ended December 31, 2021, 2020 and 2019: Foreign Currency Translation Net Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at December 31, 2018 $ (304,274) $ (2,374) $ (3,527) $ (310,175) Other comprehensive income (loss) 62,375 (66,945) 4,174 (396) Balance at December 31, 2019 (241,899) (69,319) 647 (310,571) Other comprehensive income (loss) 139,727 (12,224) (7,150) 120,353 Effect of purchase of subsidiary shares from noncontrolling interest (12,055) — — (12,055) Balance at December 31, 2020 (114,227) (81,543) (6,503) (202,273) Other comprehensive income (loss) (68,814) 33,053 3,760 (32,001) Effect of change in ownership attributable to a noncontrolling interest 92 — — 92 Balance at December 31, 2021 $ (182,949) $ (48,490) $ (2,743) $ (234,182) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, 2021 2020 2019 (in thousands) Revenues (1) : Merchant Solutions $ 5,665,557 $ 4,688,335 $ 4,098,580 Issuer Solutions 2,065,971 1,981,435 604,654 Business and Consumer Solutions 886,443 829,505 227,440 Intersegment eliminations (94,209) (75,717) (18,782) Consolidated revenues $ 8,523,762 $ 7,423,558 $ 4,911,892 Operating income (loss) (1)(2) : Merchant Solutions $ 1,725,990 $ 1,162,741 $ 1,148,975 Issuer Solutions 301,119 277,651 82,172 Business and Consumer Solutions 167,777 138,630 19,473 Corporate (836,010) (685,069) (459,203) Consolidated operating income $ 1,358,876 $ 893,953 $ 791,417 Depreciation and amortization (1) : Merchant Solutions $ 993,228 $ 948,798 $ 677,196 Issuer Solutions 580,304 547,299 157,799 Business and Consumer Solutions 85,108 95,720 34,914 Corporate 32,744 22,623 8,426 Consolidated depreciation and amortization $ 1,691,384 $ 1,614,440 $ 878,335 (1) Revenues, operating income and depreciation and amortization reflect the effects of acquired businesses from the respective acquisition dates. (2) |
Schedule of Long-Lived Assets by Geographic Regions | Long-lived assets, excluding goodwill and other intangible assets, by location as of December 31, 2021 and 2020 were as follows: 2021 2020 (in thousands) United States $ 1,092,899 $ 1,026,884 Foreign countries 594,687 551,648 $ 1,687,586 $ 1,578,532 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments for Purchase Obligations | Future minimum payments at December 31, 2021 for purchase obligations were as follows (in thousands): Year ending December 31: 2022 $ 497,436 2023 239,021 2024 152,084 2025 169,788 2026 201,661 2027 and thereafter 785,128 Total future minimum payments $ 2,045,118 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | Sep. 18, 2019USD ($) | Dec. 31, 2021USD ($)segmentshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
Product Information [Line Items] | ||||||
Number of reportable segments | segment | 3 | |||||
Stockholders' equity | $ 25,869,417 | $ 27,487,044 | $ 28,054,989 | $ 4,186,343 | ||
Operating lease liabilities | 654,280 | |||||
Operating lease right-of-use-assets | 494,082 | 481,197 | ||||
Cash available for general purposes | 894,600 | 1,100,900 | ||||
Allowance for credit loss related to accounts receivable | 17,400 | 20,600 | ||||
Credit loss expense related to accounts receivable | 12,800 | 23,000 | ||||
Allowance for credit losses related to settlement processing assets | 3,000 | 6,200 | ||||
Credit loss expense related to settlement processing assets | 3,600 | 16,800 | ||||
Allowance for credit losses related to check guarantee claims receivable | 2,500 | 2,100 | ||||
Credit loss provisions related to check guarantee claims receivable | $ 10,200 | $ 10,100 | ||||
Buyout of relationship managers and sales managers commissions, fixed multiple period | 12 months | |||||
Antidilutive securities excluded from computation of earnings per share (shares) | shares | 234,813 | 124,888 | 0 | |||
Accounting Standards Update 2016-02 | ||||||
Product Information [Line Items] | ||||||
Operating lease liabilities | $ 274,000 | |||||
Operating lease right-of-use-assets | $ 236,000 | |||||
CUP Data | ||||||
Product Information [Line Items] | ||||||
Ownership interest in equity method investment (as a percent) | 45.00% | |||||
Minimum | ||||||
Product Information [Line Items] | ||||||
Amortization period of capitalized contract costs | 3 years | |||||
Maximum | ||||||
Product Information [Line Items] | ||||||
Amortization period of capitalized contract costs | 7 years | |||||
Retained Earnings | ||||||
Product Information [Line Items] | ||||||
Stockholders' equity | $ 2,982,122 | $ 2,570,874 | $ 2,333,011 | $ 2,066,415 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Product Information [Line Items] | ||||||
Stockholders' equity | (5,379) | |||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | ||||||
Product Information [Line Items] | ||||||
Stockholders' equity | $ (5,379) | |||||
Internal-Use Software | ||||||
Product Information [Line Items] | ||||||
Capitalized implementation costs, net of accumulated amortization | 72,400 | 16,200 | ||||
Amortization expense of capitalized implementation costs | $ 3,000 | $ 3,100 | ||||
Internal-Use Software | Minimum | ||||||
Product Information [Line Items] | ||||||
Estimated useful life | 5 years | |||||
Internal-Use Software | Maximum | ||||||
Product Information [Line Items] | ||||||
Estimated useful life | 10 years | |||||
Total System Services, Inc. | ||||||
Product Information [Line Items] | ||||||
Total purchase consideration | $ 24,474,953 |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 1,979,308 | $ 1,945,868 | ||
Restricted cash | 143,715 | 143,903 | ||
Cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 2,123,023 | $ 2,089,771 | $ 1,678,273 | $ 1,210,878 |
BASIS OF PRESENTATION AND SUM_6
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Basic weighted-average number of shares outstanding (shares) | 292,655 | 299,222 | 198,298 |
Plus: Dilutive effect of stock options and other share-based awards (shares) | 1,014 | 1,294 | 836 |
Diluted weighted-average number of shares outstanding (shares) | 293,669 | 300,516 | 199,134 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | Jun. 10, 2021 | Sep. 18, 2019 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||||
Goodwill acquired | $ 988,841 | $ 80,152 | $ 17,398,853 | ||||
Goodwill acquired | $ 24,813,274 | 24,813,274 | 23,871,451 | ||||
Merchant Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 557,044 | 80,152 | 7,095,167 | ||||
Issuer Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 0 | 0 | 7,945,029 | ||||
Business and Consumer Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 431,797 | 0 | 2,358,657 | ||||
Zego | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration paid to acquire business | $ 933,000 | ||||||
Measurement period adjustments to goodwill acquired | (50,782) | ||||||
Goodwill acquired | 525,929 | 475,147 | 475,147 | ||||
Adjustment to identifiable net assets | 51,204 | ||||||
Zego | Merchant Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | $ 475,100 | ||||||
Total System Services, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration paid to acquire business | $ 1,352 | ||||||
Measurement period adjustments to goodwill acquired | (39,684) | ||||||
Goodwill acquired | 17,400,000 | 17,400,000 | |||||
Aggregate purchase price | $ 24,474,953 | ||||||
Goodwill acquired | $ 17,398,853 | 17,359,169 | 17,398,853 | ||||
Entity stock issued per acquiree share (shares) | 0.8101 | ||||||
Number of equity awards of acquiree exchanged for corresponding acquirer equity awards (shares) | 2,200,000 | ||||||
Total purchase consideration transferred to TSYS shareholders | $ 23,772,741 | ||||||
Adjustment to identifiable net assets | 39,684 | ||||||
Revenue of acquiree | 4,205,200 | ||||||
Operating income (loss) of acquiree | 538,000 | ||||||
Revenue of acquiree since acquisition date | 1,215,000 | ||||||
Operating income of acquiree since acquisition date | $ 78,700 | ||||||
Acquisition and integration expenses | $ 68,900 | ||||||
Total System Services, Inc. | Merchant Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 7,100,000 | 7,100,000 | |||||
Total System Services, Inc. | Issuer Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 7,900,000 | 7,900,000 | |||||
Total System Services, Inc. | Business and Consumer Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 2,400,000 | $ 2,400,000 | |||||
Series of Individually Immaterial Business Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price | 963,000 | ||||||
Intangible assets acquired | 438,000 | 438,000 | |||||
Goodwill acquired | $ 514,000 | $ 514,000 |
ACQUISITIONS - Assets Acquired
ACQUISITIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 7 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Jun. 10, 2021 | Dec. 31, 2019 | Sep. 18, 2019 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 24,813,274 | $ 23,871,451 | |||
Zego | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 67,374 | $ 67,374 | |||
Accounts receivable | 1,017 | 1,033 | |||
Identified intangible assets | 473,000 | 410,443 | |||
Property and equipment | 575 | 3,634 | |||
Other assets | 9,051 | 9,141 | |||
Accounts payable and accrued liabilities | (71,006) | (65,753) | |||
Deferred income tax liabilities | (13,902) | (10,709) | |||
Other liabilities | (8,010) | (8,268) | |||
Total identifiable net assets | 458,099 | 406,895 | |||
Goodwill | 475,147 | 525,929 | |||
Total purchase consideration | 933,246 | $ 932,824 | |||
Measurement- Period Adjustments | |||||
Cash and cash equivalents | 0 | ||||
Accounts receivable | (16) | ||||
Identified intangible assets | 62,557 | ||||
Property and equipment | (3,059) | ||||
Other assets | (90) | ||||
Accounts payable and accrued liabilities | (5,253) | ||||
Deferred income tax liabilities | (3,193) | ||||
Other liabilities | 258 | ||||
Total identifiable net assets | 51,204 | ||||
Goodwill | (50,782) | ||||
Total purchase consideration | $ 422 | ||||
Total System Services, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 446,009 | $ 446,009 | |||
Accounts receivable | 440,188 | 442,848 | |||
Identified intangible assets | 10,980,978 | 10,980,000 | $ 10,980,000 | ||
Property and equipment | 643,106 | 644,084 | |||
Other assets | 1,471,856 | 1,474,825 | |||
Accounts payable and accrued liabilities | (625,959) | (614,060) | |||
Debt | (3,290,555) | (3,295,342) | |||
Deferred income tax liabilities | (2,635,251) | (2,687,849) | |||
Other liabilities | (314,588) | (314,415) | |||
Total identifiable net assets | 7,115,784 | 7,076,100 | |||
Goodwill | 17,359,169 | 17,398,853 | |||
Total purchase consideration | 24,474,953 | $ 24,474,953 | |||
Measurement- Period Adjustments | |||||
Cash and cash equivalents | 0 | ||||
Accounts receivable | (2,660) | ||||
Identified intangible assets | 978 | ||||
Property and equipment | (978) | ||||
Other assets | (2,969) | ||||
Accounts payable and accrued liabilities | (11,899) | ||||
Debt | 4,787 | ||||
Deferred income tax liabilities | 52,598 | ||||
Other liabilities | (173) | ||||
Total identifiable net assets | 39,684 | ||||
Goodwill | (39,684) | ||||
Total purchase consideration | $ 0 |
ACQUISITIONS - Fair Value of In
ACQUISITIONS - Fair Value of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 18, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 10, 2021 |
Zego | |||||
Business Acquisition [Line Items] | |||||
Estimated Fair Values | $ 473,000 | $ 410,443 | |||
Weighted-Average Estimated Amortization Periods | 14 years | ||||
Total System Services, Inc. | |||||
Business Acquisition [Line Items] | |||||
Estimated Fair Values | $ 10,980,000 | $ 10,980,978 | $ 10,980,000 | ||
Weighted-Average Estimated Amortization Periods | 13 years | ||||
Customer-related intangible assets | |||||
Business Acquisition [Line Items] | |||||
Weighted-Average Estimated Amortization Periods | 11 years 10 months 24 days | 8 years 10 months 24 days | 15 years 1 month 6 days | ||
Customer-related intangible assets | Zego | |||||
Business Acquisition [Line Items] | |||||
Estimated Fair Values | $ 208,000 | ||||
Weighted-Average Estimated Amortization Periods | 13 years | ||||
Customer-related intangible assets | Total System Services, Inc. | |||||
Business Acquisition [Line Items] | |||||
Estimated Fair Values | $ 6,420,000 | ||||
Weighted-Average Estimated Amortization Periods | 15 years | ||||
Contract-based intangible assets | |||||
Business Acquisition [Line Items] | |||||
Weighted-Average Estimated Amortization Periods | 18 years 6 months | 9 years 9 months 18 days | 17 years 8 months 12 days | ||
Contract-based intangible assets | Zego | |||||
Business Acquisition [Line Items] | |||||
Estimated Fair Values | $ 119,000 | ||||
Weighted-Average Estimated Amortization Periods | 20 years | ||||
Contract-based intangible assets | Total System Services, Inc. | |||||
Business Acquisition [Line Items] | |||||
Estimated Fair Values | $ 1,800,000 | ||||
Weighted-Average Estimated Amortization Periods | 18 years | ||||
Acquired technologies | |||||
Business Acquisition [Line Items] | |||||
Weighted-Average Estimated Amortization Periods | 6 years | 5 years | 6 years 10 months 24 days | ||
Acquired technologies | Zego | |||||
Business Acquisition [Line Items] | |||||
Estimated Fair Values | $ 124,000 | ||||
Weighted-Average Estimated Amortization Periods | 6 years | ||||
Acquired technologies | Total System Services, Inc. | |||||
Business Acquisition [Line Items] | |||||
Estimated Fair Values | $ 1,810,000 | ||||
Weighted-Average Estimated Amortization Periods | 7 years | ||||
Trademarks and trade names | |||||
Business Acquisition [Line Items] | |||||
Weighted-Average Estimated Amortization Periods | 15 years | 10 years 8 months 12 days | |||
Trademarks and trade names | Zego | |||||
Business Acquisition [Line Items] | |||||
Estimated Fair Values | $ 22,000 | ||||
Weighted-Average Estimated Amortization Periods | 15 years | ||||
Trademarks and trade names | Total System Services, Inc. | |||||
Business Acquisition [Line Items] | |||||
Estimated Fair Values | $ 950,000 | ||||
Weighted-Average Estimated Amortization Periods | 11 years |
ACQUISITIONS - Total Considerat
ACQUISITIONS - Total Consideration Transferred (Details) - Total System Services, Inc. $ / shares in Units, $ in Thousands | Sep. 18, 2019USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Shares of TSYS common stock issued and outstanding (including Single-Trigger Awards) (Shares) | shares | 177,643,000 |
Exchange Ratio (Shares) | shares | 0.8101 |
Shares of Global Payments common stock issued to TSYS shareholders (shares) | shares | 143,909,000 |
Price per share of Global Payments common stock (USD per share) | $ / shares | $ 163.74 |
Fair value of common stock issued to TSYS shareholders | $ 23,563,568 |
Value of Replacement Awards attributable to purchase consideration | 207,821 |
Cash paid to TSYS shareholders in lieu of fractional shares | 1,352 |
Total purchase consideration transferred to TSYS shareholders | 23,772,741 |
Repayment of TSYS' unsecured revolving credit facility (including accrued interest and fees) | 702,212 |
Total purchase consideration | $ 24,474,953 |
ACQUISITIONS - - Pro Forma Info
ACQUISITIONS - - Pro Forma Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Actual | |||
Total revenues | $ 8,523,762 | $ 7,423,558 | $ 4,911,892 |
Net income attributable to Global Payments | $ 965,460 | $ 584,520 | 430,613 |
Total System Services, Inc. | |||
Pro Forma | |||
Total revenues | 7,854,282 | ||
Net income attributable to Global Payments | $ 711,658 |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 8,523,762 | $ 7,423,558 | $ 4,911,892 |
Operating Segments | Merchant Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 5,665,557 | 4,688,335 | 4,098,580 |
Operating Segments | Merchant Solutions | Relationship-led | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 3,031,873 | 2,600,440 | 2,218,559 |
Operating Segments | Merchant Solutions | Technology-enabled | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2,633,684 | 2,087,895 | 1,880,021 |
Operating Segments | Issuer Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2,065,971 | 1,981,435 | 604,654 |
Operating Segments | Business and Consumer Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 886,443 | 829,505 | 227,440 |
Intersegment Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | (94,209) | (75,717) | (18,782) |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 7,097,925 | 6,233,337 | 3,907,180 |
Americas | Operating Segments | Merchant Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 4,735,505 | 3,948,642 | 3,240,233 |
Americas | Operating Segments | Issuer Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,559,177 | 1,525,122 | 458,289 |
Americas | Operating Segments | Business and Consumer Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 872,254 | 825,564 | 227,440 |
Americas | Intersegment Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | (69,011) | (65,991) | (18,782) |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,180,356 | 990,367 | 761,112 |
Europe | Operating Segments | Merchant Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 684,760 | 539,839 | 614,747 |
Europe | Operating Segments | Issuer Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 481,596 | 446,587 | 146,365 |
Europe | Operating Segments | Business and Consumer Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 14,000 | 3,941 | 0 |
Europe | Intersegment Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 245,481 | 199,854 | 243,600 |
Asia Pacific | Operating Segments | Merchant Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 245,292 | 199,854 | 243,600 |
Asia Pacific | Operating Segments | Issuer Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 25,198 | 9,726 | 0 |
Asia Pacific | Operating Segments | Business and Consumer Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 189 | 0 | 0 |
Asia Pacific | Intersegment Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ (25,198) | $ (9,726) | $ 0 |
REVENUES - Supplemental balance
REVENUES - Supplemental balance sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disaggregation of Revenue [Line Items] | ||
Contract liabilities, net (current) | $ 227,783 | $ 217,938 |
Contract liabilities, net (noncurrent) | 44,502 | 52,944 |
Obtain Contract | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost | 291,914 | 253,780 |
Fulfill Contract | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost | $ 113,366 | $ 81,371 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue recognized | $ 207.1 | $ 182.3 |
REVENUES - Remaining Performanc
REVENUES - Remaining Performance Obligation (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 3,611,946 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 977,500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 803,671 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 547,963 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 429,303 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 333,970 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 519,539 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction |
PROPERTY AND EQUIPMENT - Summar
PROPERTY AND EQUIPMENT - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,505,800 | $ 2,241,263 |
Less accumulated depreciation and amortization | (1,196,623) | (900,438) |
Property and equipment, net | 1,687,586 | 1,578,532 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,309,160 | 1,144,230 |
Software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Depreciable Lives | 5 years | |
Software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Depreciable Lives | 10 years | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 778,533 | 679,686 |
Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Depreciable Lives | 3 years | |
Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Depreciable Lives | 20 years | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 195,088 | 208,264 |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Depreciable Lives | 40 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 132,529 | 131,790 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Depreciable Lives | 5 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Depreciable Lives | 15 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 78,364 | 63,542 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Depreciable Lives | 5 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Depreciable Lives | 10 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 12,126 | 13,751 |
Work-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 378,409 | $ 237,707 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Facilities exit charges | $ 9.2 | |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Write-off of capitalized software assets | $ 31.1 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 24,813,274 | $ 23,871,451 |
Other intangible assets | 16,186,215 | 15,292,269 |
Less accumulated amortization on intangible assets | 4,552,506 | 3,276,386 |
Other intangible assets, net | 11,633,709 | 12,015,883 |
Customer-related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 9,694,083 | 9,275,093 |
Less accumulated amortization on intangible assets | 2,587,586 | 1,914,214 |
Acquired technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 2,962,154 | 2,795,991 |
Less accumulated amortization on intangible assets | 1,367,513 | 960,281 |
Contract-based intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 2,258,676 | 1,981,260 |
Less accumulated amortization on intangible assets | 180,975 | 120,631 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 1,271,302 | 1,239,925 |
Less accumulated amortization on intangible assets | $ 416,432 | $ 281,260 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||||
Accumulated impairment loss | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization expense of acquired intangibles | $ 1,295,042,000 | 1,256,911,000 | $ 667,135,000 | |
Customer-related intangible assets | ||||
Goodwill [Line Items] | ||||
Finite-lived intangible assets acquired | $ 307,900,000 | |||
Intangible assets weighted average amortization periods | 11 years 10 months 24 days | 8 years 10 months 24 days | 15 years 1 month 6 days | |
Acquired technologies | ||||
Goodwill [Line Items] | ||||
Intangible assets weighted average amortization periods | 6 years | 5 years | 6 years 10 months 24 days | |
Contract-based intangible assets | ||||
Goodwill [Line Items] | ||||
Intangible assets weighted average amortization periods | 18 years 6 months | 9 years 9 months 18 days | 17 years 8 months 12 days | |
Trademarks and trade names | ||||
Goodwill [Line Items] | ||||
Intangible assets weighted average amortization periods | 15 years | 10 years 8 months 12 days |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill Roll-Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Goodwill, balance at beginning of period | $ 23,871,451 | $ 23,759,740 | $ 6,341,355 |
Goodwill acquired | 988,841 | 80,152 | 17,398,853 |
Effect of foreign currency translation | (41,018) | 68,730 | 18,903 |
Measurement-period adjustments | (6,000) | (37,171) | 629 |
Goodwill, balance at end of period | 24,813,274 | 23,871,451 | 23,759,740 |
Merchant Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill, balance at beginning of period | 13,548,690 | 13,415,352 | 6,309,526 |
Goodwill acquired | 557,044 | 80,152 | 7,095,167 |
Effect of foreign currency translation | (36,192) | 54,548 | 10,030 |
Measurement-period adjustments | (5,860) | (1,362) | 629 |
Goodwill, balance at end of period | 14,063,682 | 13,548,690 | 13,415,352 |
Issuer Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill, balance at beginning of period | 7,957,616 | 7,985,731 | 31,829 |
Goodwill acquired | 0 | 0 | 7,945,029 |
Effect of foreign currency translation | (3,163) | 14,182 | 8,873 |
Measurement-period adjustments | 0 | (42,297) | 0 |
Goodwill, balance at end of period | 7,954,453 | 7,957,616 | 7,985,731 |
Business and Consumer Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill, balance at beginning of period | 2,365,145 | 2,358,657 | 0 |
Goodwill acquired | 431,797 | 0 | 2,358,657 |
Effect of foreign currency translation | (1,663) | 0 | 0 |
Measurement-period adjustments | (140) | 6,488 | 0 |
Goodwill, balance at end of period | $ 2,795,139 | $ 2,365,145 | $ 2,358,657 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Future Intangible Asset Amortization Expense (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2022 | $ 1,295,054 |
2023 | 1,226,690 |
2024 | 1,173,996 |
2025 | 1,110,748 |
2026 | $ 979,483 |
LEASES - Lease Assets and Liabi
LEASES - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Assets: | ||
Total operating lease right-of-use-assets | $ 494,082 | $ 481,197 |
Finance lease right-of-use assets: | 85,281 | 76,557 |
Less accumulated depreciation: | (31,365) | (16,099) |
Total finance lease right-of-use assets | 53,916 | 60,458 |
Total right-of-use assets | 547,998 | 541,655 |
Liabilities: | ||
Operating lease liabilities | 103,554 | 103,706 |
Operating lease liabilities (noncurrent) | 550,726 | 448,016 |
Finance lease liabilities (current) | 19,905 | 18,217 |
Finance lease liabilities (noncurrent) | 44,516 | 57,772 |
Total lease liabilities | $ 718,701 | $ 627,711 |
Proportion of operating lease right-of-use assets located in the United States (as a percent) | 75.00% | 72.00% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | Property and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other noncurrent liabilities | Other noncurrent liabilities |
Real estate | ||
Assets: | ||
Total operating lease right-of-use-assets | $ 404,453 | $ 425,376 |
Computer equipment | ||
Assets: | ||
Total operating lease right-of-use-assets | 88,431 | 54,959 |
Finance lease right-of-use assets: | 24,720 | 26,737 |
Less accumulated depreciation: | (11,107) | (6,602) |
Other equipment | ||
Assets: | ||
Finance lease right-of-use assets: | 55,953 | 45,560 |
Less accumulated depreciation: | (19,914) | (8,628) |
Other | ||
Assets: | ||
Total operating lease right-of-use-assets | 1,198 | 862 |
Finance lease right-of-use assets: | 4,608 | 4,260 |
Less accumulated depreciation: | $ (344) | $ (869) |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Weighted-average remaining lease term of operating leases | 8 years 4 months 24 days | 7 years 4 months 24 days | |
Weighted-average remaining lease term of finance leases | 3 years 2 months 12 days | 4 years 3 months 18 days | |
Weighted-average discount rate of operating leases (as a percent) | 3.20% | 3.50% | |
Weighted-average discount rate of finance leases (as a percent) | 3.20% | 3.30% | |
Operating lease cost | $ 195.6 | $ 147 | $ 85.9 |
Variable lease cost | 18.1 | 17.9 | 19.1 |
Finance lease cost | 20.5 | 16.3 | |
Amortization of right-of-use assets on finance leases | 18.4 | 14.6 | |
Interest on finance lease liabilities | 2.2 | 1.6 | |
Impairment charge to operating lease right-of-use assets | 42.1 | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 123.6 | 117.7 | 70.4 |
Operating lease liabilities arising from obtaining new or modified right-of-use assets | 200.1 | 158.6 | 28.4 |
Cash paid for amounts included in the measurement of finance lease liabilities | 22.6 | 11.2 | |
Finance lease liabilities arising from obtaining new or modified right-of-use assets | 7.9 | 51.3 | |
Right-of-use assets acquired | 8.8 | 256.2 | |
Lease liabilities assumed | 5.8 | 272 | |
Selling, General and Administrative Expenses | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 157.4 | 108.4 | 71 |
Cost of Services | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 38.2 | $ 38.6 | $ 14.9 |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 129,762 | |
2023 | 111,749 | |
2024 | 106,834 | |
2025 | 79,220 | |
2026 | 60,828 | |
2027 and thereafter | 264,535 | |
Total lease payments | 752,928 | |
Imputed interest | (98,648) | |
Total lease liabilities | 654,280 | |
Finance Leases | ||
2022 | 25,060 | |
2023 | 20,460 | |
2024 | 18,061 | |
2025 | 4,701 | |
2026 | 317 | |
2027 and thereafter | 0 | |
Total lease payments | 68,599 | |
Imputed interest | (4,178) | |
Total lease liabilities | 64,421 | $ 75,989 |
Operating leases not yet commenced | $ 24,200 |
OTHER ASSETS - Narrative (Detai
OTHER ASSETS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2021 | Jun. 21, 2016 | |
Interest and Other Income | |||
Other Investment Not Readily Marketable [Line Items] | |||
Realized gain on investment | $ 27,700,000 | ||
Minimum | |||
Other Investment Not Readily Marketable [Line Items] | |||
Potential stock received upon conversion of investment (shares) | 0 | 0 | |
Prepaid Expenses and Other Current Assets | |||
Other Investment Not Readily Marketable [Line Items] | |||
Assigned value of preferred shares | $ 0 |
LONG-TERM DEBT AND LINES OF C_3
LONG-TERM DEBT AND LINES OF CREDIT - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Nov. 22, 2021 | Feb. 26, 2021 | Dec. 31, 2020 | May 15, 2020 | Sep. 18, 2019 | Aug. 14, 2019 |
Debt Instrument [Line Items] | |||||||
Finance lease liabilities | $ 64,421 | $ 75,989 | |||||
Total long-term debt | 11,493,314 | 9,293,764 | |||||
Less current portion | 78,505 | 827,357 | |||||
Long-term debt, excluding current portion | 11,414,809 | 8,466,407 | |||||
Unsecured term loan facility | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | 1,989,793 | 1,985,776 | |||||
Unsecured revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | 0 | 36,000 | |||||
Other borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | 8,601 | 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% | 3.80% | 3.80% | ||||
3.750% senior notes due June 1, 2023 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 557,186 | 562,258 | |||||
Stated interest rate (as a percent) | 3.75% | 3.75% | |||||
4.000% senior notes due June 1, 2023 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 559,338 | 565,930 | |||||
Stated interest rate (as a percent) | 4.00% | 4.00% | |||||
1.500% senior notes due November 15, 2024 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 497,185 | 0 | |||||
Stated interest rate (as a percent) | 1.50% | 1.50% | |||||
2.650% senior notes due February 15, 2025 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 994,797 | 993,110 | |||||
Stated interest rate (as a percent) | 2.65% | 2.65% | |||||
1.200% senior notes due March 1, 2026 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 1,092,016 | 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 | $ 798,024 | 809,324 | |||||
Stated interest rate (as a percent) | 4.80% | 4.80% | |||||
2.150% senior notes due January 15, 2027 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 743,695 | 0 | |||||
Stated interest rate (as a percent) | 2.15% | 2.15% | |||||
4.450% senior notes due June 1, 2028 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 478,194 | 482,588 | |||||
Stated interest rate (as a percent) | 4.45% | 4.45% | |||||
3.200% senior notes due August 15, 2029 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 1,238,006 | 1,236,424 | |||||
Stated interest rate (as a percent) | 3.20% | 3.20% | |||||
2.900% senior notes due May 15, 2030 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 990,196 | 989,025 | |||||
Stated interest rate (as a percent) | 2.90% | 2.90% | |||||
2.900% senior notes due November 15, 2031 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 741,716 | 0 | |||||
Stated interest rate (as a percent) | 2.90% | 2.90% | |||||
4.150% senior notes due August 15, 2049 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross long-term debt | $ 740,146 | $ 739,789 | |||||
Stated interest rate (as a percent) | 4.15% | 4.15% |
LONG-TERM DEBT AND LINES OF C_4
LONG-TERM DEBT AND LINES OF CREDIT - Narrative (Details) | May 15, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2021 | Nov. 22, 2021USD ($) | Sep. 30, 2021 | Feb. 26, 2021USD ($) | Sep. 18, 2019USD ($) | Aug. 14, 2019USD ($) | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||||
Amortization of discounts, premiums, and deferred debt issuance costs | $ 14,400,000 | $ 12,000,000 | $ 11,900,000 | ||||||||
Proceeds from long-term debt | 7,057,668,000 | 2,401,147,000 | 7,203,903,000 | ||||||||
Long-term debt | 11,408,600,000 | ||||||||||
Interest expense | 328,000,000 | 326,800,000 | 301,200,000 | ||||||||
Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unamortized discount | 11,700,000 | 8,500,000 | |||||||||
Long-term debt | 9,400,000,000 | ||||||||||
Fair value of debt instrument | 9,800,000,000 | ||||||||||
Senior Notes | Total System Services, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amortization of discounts, premiums, and deferred debt issuance costs | 29,600,000 | 36,200,000 | |||||||||
Senior Notes | Senior Unsecured Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 9,400,000,000 | $ 2,000,000,000 | $ 3,000,000,000 | ||||||||
Capitalized debt issuance costs | 14,400,000 | ||||||||||
Senior Notes | Senior Unsecured Notes | Total System Services, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 3,000,000,000 | ||||||||||
Senior Notes | 1.500% senior notes due November 15, 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 500,000,000 | ||||||||||
Stated interest rate (as a percent) | 1.50% | 1.50% | |||||||||
Gross long-term debt | $ 497,185,000 | 0 | |||||||||
Senior Notes | 2.150% senior notes due January 15, 2027 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 750,000,000 | ||||||||||
Stated interest rate (as a percent) | 2.15% | 2.15% | |||||||||
Gross long-term debt | $ 743,695,000 | 0 | |||||||||
Senior Notes | 2.900% senior notes due November 15, 2031 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 750,000,000 | ||||||||||
Stated interest rate (as a percent) | 2.90% | 2.90% | |||||||||
Gross long-term debt | $ 741,716,000 | 0 | |||||||||
Senior Notes | 1.200% senior notes due March 1, 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 1,100,000,000 | ||||||||||
Stated interest rate (as a percent) | 1.20% | 1.20% | |||||||||
Capitalized debt issuance costs | $ 8,600,000 | ||||||||||
Gross long-term debt | $ 1,092,016,000 | 0 | |||||||||
Senior Notes | 3.800% senior notes due April 1, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 750,000,000 | ||||||||||
Stated interest rate (as a percent) | 3.80% | 3.80% | 3.80% | ||||||||
Gross long-term debt | $ 0 | 752,199,000 | |||||||||
Senior Notes | 2.900% senior notes due May 15, 2030 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 1,000,000,000 | ||||||||||
Stated interest rate (as a percent) | 2.90% | 2.90% | |||||||||
Proceeds from long-term debt | $ 996,700,000 | ||||||||||
Capitalized debt issuance costs | $ 8,400,000 | ||||||||||
Gross long-term debt | $ 990,196,000 | 989,025,000 | |||||||||
Senior Notes | 2.650% senior notes due February 15, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 1,000,000,000 | ||||||||||
Stated interest rate (as a percent) | 2.65% | 2.65% | |||||||||
Gross long-term debt | $ 994,797,000 | 993,110,000 | |||||||||
Senior Notes | 3.200% senior notes due August 15, 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 1,250,000,000 | ||||||||||
Stated interest rate (as a percent) | 3.20% | 3.20% | |||||||||
Gross long-term debt | $ 1,238,006,000 | 1,236,424,000 | |||||||||
Senior Notes | 4.150% senior notes due August 15, 2049 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 750,000,000 | ||||||||||
Stated interest rate (as a percent) | 4.15% | 4.15% | |||||||||
Gross long-term debt | $ 740,146,000 | 739,789,000 | |||||||||
Senior Notes | 3.750% senior notes due June 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 550,000,000 | ||||||||||
Stated interest rate (as a percent) | 3.75% | 3.75% | |||||||||
Gross long-term debt | $ 557,186,000 | 562,258,000 | |||||||||
Senior Notes | 4.000% senior notes due June 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 550,000,000 | ||||||||||
Stated interest rate (as a percent) | 4.00% | 4.00% | |||||||||
Gross long-term debt | $ 559,338,000 | 565,930,000 | |||||||||
Senior Notes | 4.800% senior notes due April 1, 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 750,000,000 | ||||||||||
Stated interest rate (as a percent) | 4.80% | 4.80% | |||||||||
Gross long-term debt | $ 798,024,000 | 809,324,000 | |||||||||
Senior Notes | 4.450% senior notes due June 1, 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 450,000,000 | ||||||||||
Stated interest rate (as a percent) | 4.45% | 4.45% | |||||||||
Gross long-term debt | $ 478,194,000 | 482,588,000 | |||||||||
Senior Notes and Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unamortized debt issuance costs | 60,700,000 | ||||||||||
Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unamortized debt issuance costs | 47,400,000 | ||||||||||
Secured Debt | Term Loan A | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Rate of quarterly installment payments (as a percent) | 2.50% | ||||||||||
Secured Debt | Term Loan B-2 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unamortized discount | $ 6,100,000 | ||||||||||
Capitalized debt issuance costs | $ 29,600,000 | ||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unamortized debt issuance costs | 9,900,000 | ||||||||||
Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unamortized debt issuance costs | 13,800,000 | ||||||||||
Unsecured term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gross long-term debt | 1,989,793,000 | 1,985,776,000 | |||||||||
Forward-Starting Interest Rate Swap | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Derivative settlement payments | $ 48,300,000 | ||||||||||
Forward-Starting Interest Rate Swap | Accounts payable & accrued liabilities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notional amount | $ 1,000,000,000 | ||||||||||
Interest Rate Swap | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Reclassification of net unrealized losses (gains) on hedging activities to interest expense | 34,200,000 | ||||||||||
Interest Rate Swap | Accounts payable & accrued liabilities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notional amount | 1,250,000,000 | 300,000,000 | |||||||||
Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | 1,267,400,000 | ||||||||||
Available borrowings under credit facility | 1,693,200,000 | ||||||||||
Repayments of lines of credit | 76,300,000 | $ 64,500,000 | |||||||||
Amount outstanding under lines of credit | 484,200,000 | ||||||||||
Average outstanding balance | $ 487,700,000 | ||||||||||
Weighted-average interest rate of short-term debt (as a percent) | 2.22% | ||||||||||
Term Loan Facility | Unsecured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Effective interest rate (as a percent) | 1.48% | ||||||||||
Term Loan Facility | Unsecured Debt | Five Year Senior Unsecured Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 2,000,000,000 | ||||||||||
Revolving Credit Facility | Fourth Amendment | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum leverage ratio | 3.50 | ||||||||||
Minimum interest coverage ratio | 3 | ||||||||||
Revolving Credit Facility | Unsecured Debt | Five Year Senior Unsecured Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 3,000,000,000 | ||||||||||
Capitalized debt issuance costs | 12,800,000 | ||||||||||
Letter of Credit | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | 250,000,000 | ||||||||||
Standby Letters of Credit | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Available borrowings under credit facility | $ 1,900,000,000 | ||||||||||
Minimum | Revolving Credit Facility | Fourth Amendment | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment fee (as a percent) | 0.125% | ||||||||||
Maximum | Revolving Credit Facility | Fourth Amendment | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment fee (as a percent) | 0.30% | ||||||||||
Fed Funds Effective Rate Overnight Index Swap Rate | Term Loan Facility | Unsecured Debt | Five Year Senior Unsecured Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||||
London Interbank Offered Rate (LIBOR) | Term Loan Facility | Unsecured Debt | Five Year Senior Unsecured Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 1.00% |
LONG-TERM DEBT AND LINES OF C_5
LONG-TERM DEBT AND LINES OF CREDIT - Maturity Requirements on Outstanding Debt (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 58,600 |
2023 | 1,300,000 |
2024 | 2,250,000 |
2025 | 1,000,000 |
2026 | 1,850,000 |
2027 and thereafter | 4,950,000 |
Total | $ 11,408,600 |
LONG-TERM DEBT AND LINES OF C_6
LONG-TERM DEBT AND LINES OF CREDIT - Derivative Financial Instruments (Details) - Interest Rate Swap - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts payable & accrued liabilities | ||
Debt Instrument [Line Items] | ||
Notional amount of derivative | $ 1,250,000 | $ 300,000 |
Weighted-average fixed rate of interest (as a percent) | 2.73% | |
Interest rate swaps | $ 28,777 | 1,330 |
Other noncurrent liabilities | ||
Debt Instrument [Line Items] | ||
Notional amount of derivative | 1,250,000 | |
Interest rate swaps | $ 0 | $ 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Net unrealized gains (losses) recognized in other comprehensive loss | $ 3,425 | $ (52,742) | $ (90,238) |
Net unrealized losses reclassified out of other comprehensive loss to interest expense | $ 40,094 | $ 36,510 | $ 2,257 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Funds held for customers | $ 775,852 | $ 645,863 |
Trade accounts payable | 262,014 | 128,721 |
Contract liabilities | 227,783 | 217,938 |
Payment network fees | 187,665 | 166,880 |
Compensation and benefits | 184,580 | 194,090 |
Operating lease liabilities | 103,554 | 103,706 |
Third-party commissions | 88,109 | 74,391 |
Audit and legal | 82,108 | 44,146 |
Miscellaneous taxes and withholdings | 68,323 | 68,048 |
Interest | 64,591 | 62,865 |
Income taxes payable | 51,818 | 13,517 |
Unclaimed property | 34,744 | 32,497 |
Interest rate swap liabilities | 28,777 | 1,330 |
Third-party processing fees | 27,345 | 24,619 |
Current portion of accrued buyout liability | 22,204 | 16,180 |
Settlement of common share repurchases | 0 | 20,000 |
Other | 332,789 | 246,593 |
Accounts payable and accrued liabilities | 2,542,256 | 2,061,384 |
Noncurrent accrued buyout liability | $ 44,600 | $ 30,700 |
ACCOUNTS PAYABLE AND ACCRUED _4
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Payable and Accrued Liabilities [Abstract] | |||
Employee termination benefits obligations | $ 14.5 | $ 48.4 | |
Charges for employee termination benefits | 43.4 | 83.3 | $ 57.1 |
Share-based compensation expense associated with equity awards held by terminated employees | 1.2 | $ 6.7 | $ 17.3 |
Cumulative charges for employee termination benefits | 183.8 | ||
Cumulative charges for employee termination benefits related to share-based compensation expense | $ 25.2 |
INCOME TAX - Components of Inco
INCOME TAX - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax expense (benefit): | |||
Federal | $ 195,804 | $ 124,176 | $ 50,048 |
State | 58,772 | 35,840 | 29,788 |
Foreign | 103,781 | 82,456 | 90,895 |
Current tax expense | 358,357 | 242,472 | 170,731 |
Deferred income tax expense (benefit): | |||
Federal | (178,666) | (151,824) | (79,813) |
State | (18,500) | (20,607) | (29,326) |
Foreign | 7,843 | 7,112 | 598 |
Deferred tax expense | (189,323) | (165,319) | (108,541) |
Provision for income taxes | $ 169,034 | $ 77,153 | $ 62,190 |
INCOME TAX - Narrative (Details
INCOME TAX - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense (benefit) allocated to noncontrolling interest | $ 6.8 | $ 8.5 | $ 12.3 |
Undistributed earnings of foreign subsidiary | 32.7 | ||
Unrecognized that would impact effective tax rate | 32.9 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 103.8 | ||
Operating loss carryforwards not subject to expiration | 0.7 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards subject to expiration | 29.8 | ||
Tax credit carryforwards | $ 49.9 |
INCOME TAX - Income Before Inco
INCOME TAX - Income Before Income Taxes, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 537,586 | $ 194,190 | $ 60,000 |
Foreign | 506,959 | 399,766 | 457,925 |
Income before income taxes and equity in income of equity method investments | $ 1,044,545 | $ 593,956 | $ 517,925 |
INCOME TAX - Reconciliation (De
INCOME TAX - Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal U.S. statutory rate | 21.00% | 21.00% | 21.00% |
Foreign interest income not subject to tax | (4.20%) | (4.20%) | (4.50%) |
Tax credits | (3.80%) | (5.30%) | (3.90%) |
State income taxes, net of federal income tax benefit | 3.40% | 0.70% | 1.00% |
Foreign-derived intangible income deduction | (1.90%) | (2.80%) | (2.70%) |
Valuation allowance | (1.70%) | (0.10%) | 4.60% |
Nondeductible executive compensation | 1.00% | 1.70% | 1.00% |
Equity method investment partnership income | 0.90% | 1.10% | 0.00% |
Uncertain tax positions | (0.30%) | 1.10% | (2.60%) |
Foreign income taxes | 0.30% | 0.60% | (0.70%) |
Share-based compensation expense | (0.20%) | (2.70%) | (2.50%) |
Other | 1.70% | 1.90% | 1.30% |
Effective tax rate | 16.20% | 13.00% | 12.00% |
INCOME TAX - Deferred Tax Asset
INCOME TAX - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||||
Lease liabilities | $ 130,328 | $ 105,959 | ||
Foreign net operating loss carryforwards | 104,499 | 107,931 | ||
Credit carryforwards | 49,875 | 42,637 | ||
Accrued expenses | 42,839 | 38,521 | ||
Financial instruments | 37,928 | 60,340 | ||
Share-based compensation expense | 36,086 | 41,558 | ||
Domestic net operating loss carryforwards | 29,806 | 18,952 | ||
Other | 42,945 | 58,107 | ||
Gross deferred tax assets | 474,306 | 474,005 | ||
Valuation allowance | (112,259) | (132,531) | $ (72,042) | $ (23,390) |
Net deferred tax assets | 362,047 | 341,474 | ||
Deferred tax liabilities: | ||||
Acquired intangibles | 2,580,489 | 2,736,300 | ||
Property and equipment | 261,764 | 248,375 | ||
Partnership interests | 136,022 | 100,951 | ||
Right-of-use assets | 94,739 | 89,734 | ||
Other | 70,343 | 106,877 | ||
Gross deferred tax liabilities | 3,143,357 | 3,282,237 | ||
Net deferred income tax liability | $ 2,781,310 | $ 2,940,763 |
INCOME TAX - Net Deferred Tax A
INCOME TAX - Net Deferred Tax Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Noncurrent deferred income tax asset | $ (12,117) | $ (7,627) |
Noncurrent deferred income tax liability | 2,793,427 | 2,948,390 |
Net deferred income tax liability | $ 2,781,310 | $ 2,940,763 |
INCOME TAX - Change in Valuatio
INCOME TAX - Change in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Deferred Tax Valuation Allowance [Roll Forward] | |||
Valuation allowance, beginning of period | $ (132,531) | $ (72,042) | $ (23,390) |
Valuation allowance, end of period | (112,259) | (132,531) | (72,042) |
Net operating loss carryforwards | Foreign Tax Authority | |||
Movement in Deferred Tax Valuation Allowance [Roll Forward] | |||
Valuation allowance, change | 5,804 | (63,113) | (26,439) |
Net operating loss carryforwards | Domestic Tax Authority | |||
Movement in Deferred Tax Valuation Allowance [Roll Forward] | |||
Valuation allowance, change | 3,807 | 2,178 | (307) |
Income tax credit carryforward | Foreign Tax Authority | |||
Movement in Deferred Tax Valuation Allowance [Roll Forward] | |||
Valuation allowance, change | 12,656 | (2,486) | (15,226) |
Income tax credit carryforward | State Tax Authority | |||
Movement in Deferred Tax Valuation Allowance [Roll Forward] | |||
Valuation allowance, change | $ (1,995) | $ 2,932 | $ (6,680) |
INCOME TAX - Unrecognized Tax B
INCOME TAX - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the year | $ 39,408 | $ 29,671 | $ 21,197 |
Additions related to acquisitions | 387 | 3,186 | 22,283 |
Reductions for income tax positions of prior years | (10,875) | (5,408) | (14,235) |
Settlements with income tax authorities | (2,137) | (909) | (2,583) |
Additions for income tax positions of prior years | 2,289 | 7,968 | 1,803 |
Additions based on income tax positions related to the current year | 5,833 | 4,900 | 1,206 |
Balance at the end of the year | $ 34,905 | $ 39,408 | $ 29,671 |
SHAREHOLDERS_ EQUITY - Summary
SHAREHOLDERS’ EQUITY - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Number of shares repurchased and retired (shares) | 15,169 | 3,304 | 2,328 |
Cost of shares repurchased, including commissions | $ 2,513,629 | $ 633,948 | $ 324,583 |
Average cost per share (USD per share) | $ 165.72 | $ 191.87 | $ 139.42 |
SHAREHOLDERS_ EQUITY - Narrativ
SHAREHOLDERS’ EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 27, 2022 | Feb. 12, 2021 | Dec. 31, 2021 | Feb. 10, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Equity, Class of Treasury Stock [Line Items] | |||||||
Total stock delivered under accelerated share repurchase program to date (shares) | 2,491,161 | ||||||
Average price per share of stock delivered under accelerated share repurchase program to date (USD per share) | $ 200.71 | ||||||
Authorized amount of accelerated share repurchase program | $ 500 | ||||||
Common stock authorized (shares) | 400,000,000 | 400,000,000 | 400,000,000 | 200,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount (up to) | $ 1,540 | ||||||
Subsequent Event | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, remaining authorized repurchase amount (up to) | $ 2,000 | ||||||
Dividends declared (USD per share) | $ 0.25 |
SHARE-BASED AWARDS AND OPTION_2
SHARE-BASED AWARDS AND OPTIONS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 180,779 | $ 148,792 | $ 89,634 | |
Restricted Stock Awards and Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of share awards vested in period | 194,600 | 107,700 | 82,100 | |
Share-based compensation expense | 167,300 | 135,400 | 74,300 | |
Total unrecognized compensation cost of restricted stock and performance awards | $ 174,200 | |||
Weighted average period of unrecognized compensation cost | 1 year 10 months 24 days | |||
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years | |||
Performance-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 32,200 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 7,900 | 8,400 | 12,500 | |
Weighted average period of unrecognized compensation cost | 1 year 8 months 12 days | |||
Fair market value (as a percent) | 100.00% | |||
Stock option term | 10 years | |||
Aggregate value of stock options exercised | $ 24,100 | $ 85,800 | $ 28,800 | |
Total unrecognized compensation cost of stock options | $ 8,200 | |||
Stock Option Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock reserved for future issuance (shares) | 14,000,000 | |||
Stock Option Plan 2011 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value (USD per share) | $ 65.99 | $ 54.85 | $ 99.56 | |
Granted Fiscal 2015 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Minimum | Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 1 year | |||
Maximum | Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years |
SHARE-BASED AWARDS AND OPTION_3
SHARE-BASED AWARDS AND OPTIONS - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based compensation expense | $ 180,779 | $ 148,792 | $ 89,634 |
Income tax benefit | $ 42,870 | $ 33,530 | $ 20,519 |
SHARE-BASED AWARDS AND OPTION_4
SHARE-BASED AWARDS AND OPTIONS - Restricted Stock Awards and Performance Units Activity (Details) - Restricted Stock Awards and Performance Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Unvested at beginning of period (shares) | 1,546 | 1,844 | 1,084 |
Replacement Awards (shares) | 894 | ||
Granted (shares) | 1,465 | 607 | 784 |
Vested (shares) | (1,263) | (835) | (781) |
Forfeited (shares) | (108) | (70) | (137) |
Unvested at end of period (shares) | 1,640 | 1,546 | 1,844 |
Weighted-Average Grant-Date Fair Value | |||
Unvested at beginning of period (USD per share) | $ 176.71 | $ 149.96 | $ 108.51 |
Replacement Awards (USD per share) | 163.74 | ||
Granted (USD per share) | 192.19 | 191.20 | 142.26 |
Vested (USD per share) | 154.06 | 128.91 | 105.04 |
Forfeited (USD per share) | 181.61 | 168.40 | 124.30 |
Unvested at end of period (USD per share) | $ 184.90 | $ 176.71 | $ 149.96 |
SHARE-BASED AWARDS AND OPTION_5
SHARE-BASED AWARDS AND OPTIONS - Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options | ||||
Outstanding at beginning of period (shares) | 1,253 | 1,755 | 598 | |
Replacement Awards (shares) | 1,336 | |||
Granted (shares) | 112 | 124 | 109 | |
Forfeited (shares) | (1) | (3) | (23) | |
Exercised (shares) | (192) | (623) | (265) | |
Outstanding at end of period (shares) | 1,172 | 1,253 | 1,755 | 598 |
Options vested and exercisable (shares) | 897 | |||
Weighted-Average Exercise Price | ||||
Outstanding at beginning of period (USD per share) | $ 93.66 | $ 74.06 | $ 59.16 | |
Replacement Awards (USD per share) | 68.96 | |||
Granted (USD per share) | 196.06 | 200.42 | 128.22 | |
Forfeited (USD per share) | 113.48 | 112.85 | 110.13 | |
Exercised (USD per share) | 68.42 | 59.78 | 33.99 | |
Outstanding at end of period (USD per share) | 107.44 | $ 93.66 | $ 74.06 | $ 59.16 |
Weighted Average Exercise Price of options vested and exercisable (USD per share) | $ 86.80 | |||
Weighted-Average Remaining Contractual Term | ||||
Outstanding, Weighted Average Remaining Contractual Term | 5 years 9 months 18 days | 6 years 3 months 18 days | 6 years 6 months | 6 years 2 months 12 days |
Options vested and exercisable, Weighted Average Remaining Contractual Term | 5 years 1 month 6 days | |||
Aggregate Intrinsic Value | ||||
Outstanding | $ 47.4 | $ 152.6 | $ 190.3 | $ 27.3 |
Exercised | 24.1 | $ 85.8 | $ 28.8 | |
Options vested and exercisable, Aggregate Intrinsic Value | $ 46.1 |
SHARE-BASED AWARDS AND OPTION_6
SHARE-BASED AWARDS AND OPTIONS - Schedule of Valuation (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 0.59% | 1.24% | 1.72% |
Expected volatility (as a percent) | 40.00% | 30.00% | 31.00% |
Dividend yield (as a percent) | 0.44% | 0.39% | 0.04% |
Expected term (years) | 5 years | 5 years | 5 years |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |||
Income taxes paid, net of refunds | $ 295,534 | $ 308,620 | $ 146,739 |
Interest paid | $ 335,481 | $ 343,213 | $ 206,562 |
NONCONTROLLING INTERESTS - Summ
NONCONTROLLING INTERESTS - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |||
Net income attributable to noncontrolling interests | $ 22,404 | $ 20,580 | $ 38,663 |
Foreign currency translation attributable to noncontrolling interests | (10,281) | 14,643 | (2,725) |
Comprehensive income attributable to noncontrolling interests | $ 12,123 | $ 35,223 | $ 35,938 |
NONCONTROLLING INTERESTS - Narr
NONCONTROLLING INTERESTS - Narrative (Details) $ in Thousands, € in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Noncontrolling Interest [Line Items] | ||||
Contributions to noncontrolling interests | $ 0 | $ 26,199 | $ 31,632 | |
Purchase of subsidiary shares from noncontrolling interest | 0 | 578,196 | € 493 | 0 |
Reduction in equity attributable to noncontrolling interest | 68,400 | |||
Reduction in total equity attributable to parent | 509,800 | |||
Foreign currency translation attributable to noncontrolling interests | (10,281) | $ 14,643 | $ (2,725) | |
Comercia | ||||
Noncontrolling Interest [Line Items] | ||||
Contributions to noncontrolling interests | $ 209,600 | |||
Ownership interest (as a percent) | 80.00% | 80.00% | 51.00% | |
Foreign currency translation attributable to noncontrolling interests | $ 12,100 | |||
Majority-Owned Subsidiary | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership interest (as a percent) | 55.00% | 51.00% | 51.00% | |
Noncontrolling Interest Shareholder | Comercia | ||||
Noncontrolling Interest [Line Items] | ||||
Contributions to noncontrolling interests | $ 70,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 27,332,370 | ||
Other comprehensive income (loss) | (32,001) | $ 120,353 | $ (396) |
Effect of change in ownership attributable to a noncontrolling interest | 92 | (12,055) | |
Ending balance | 25,628,201 | 27,332,370 | |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (202,273) | (310,571) | (310,175) |
Ending balance | (234,182) | (202,273) | (310,571) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (114,227) | (241,899) | (304,274) |
Other comprehensive income (loss) | (68,814) | 139,727 | 62,375 |
Effect of change in ownership attributable to a noncontrolling interest | 92 | (12,055) | |
Ending balance | (182,949) | (114,227) | (241,899) |
Net Unrealized Gains (Losses) on Hedging Activities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (81,543) | (69,319) | (2,374) |
Other comprehensive income (loss) | 33,053 | (12,224) | (66,945) |
Effect of change in ownership attributable to a noncontrolling interest | 0 | 0 | |
Ending balance | (48,490) | (81,543) | (69,319) |
Other | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (6,503) | 647 | (3,527) |
Other comprehensive income (loss) | 3,760 | (7,150) | 4,174 |
Effect of change in ownership attributable to a noncontrolling interest | 0 | 0 | |
Ending balance | $ (2,743) | $ (6,503) | $ 647 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Foreign currency translation adjustment, other comprehensive income (loss) attributable to noncontrolling interests | $ (10,281) | $ 14,643 | $ (2,725) |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) - segment | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 | ||
Sales Revenue, Net | Geographic Concentration Risk | United States | |||
Segment Reporting Information [Line Items] | |||
Percentage of total consolidated revenues from external customers | 79.00% | 78.00% | 72.00% |
SEGMENT INFORMATION - Summary (
SEGMENT INFORMATION - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 8,523,762 | $ 7,423,558 | $ 4,911,892 |
Operating income (loss) for segments | 1,358,876 | 893,953 | 791,417 |
Depreciation and amortization | 1,691,384 | 1,614,440 | 878,335 |
Merchant Solutions | |||
Segment Reporting Information [Line Items] | |||
Acquisition and integration expenses | 56,100 | ||
Operating Segments | Merchant Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,665,557 | 4,688,335 | 4,098,580 |
Operating income (loss) for segments | 1,725,990 | 1,162,741 | 1,148,975 |
Depreciation and amortization | 993,228 | 948,798 | 677,196 |
Operating Segments | Issuer Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,065,971 | 1,981,435 | 604,654 |
Operating income (loss) for segments | 301,119 | 277,651 | 82,172 |
Depreciation and amortization | 580,304 | 547,299 | 157,799 |
Operating Segments | Business and Consumer Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenues | 886,443 | 829,505 | 227,440 |
Operating income (loss) for segments | 167,777 | 138,630 | 19,473 |
Depreciation and amortization | 85,108 | 95,720 | 34,914 |
Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | (94,209) | (75,717) | (18,782) |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) for segments | (836,010) | (685,069) | (459,203) |
Depreciation and amortization | 32,744 | 22,623 | 8,426 |
Acquisition and integration expenses | 335,500 | $ 313,000 | $ 199,500 |
Other costs related to non-acquisition facilities rationalization activities | $ 56,800 |
SEGMENT INFORMATION - Assets by
SEGMENT INFORMATION - Assets by Region (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Long-lived assets, excluding goodwill and other intangible assets | $ 1,687,586 | $ 1,578,532 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, excluding goodwill and other intangible assets | 1,092,899 | 1,026,884 |
Foreign countries | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, excluding goodwill and other intangible assets | $ 594,687 | $ 551,648 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Summary (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Purchase Obligations | |
2022 | $ 497,436 |
2023 | 239,021 |
2024 | 152,084 |
2025 | 169,788 |
2026 | 201,661 |
2027 and thereafter | 785,128 |
Total future minimum payments | $ 2,045,118 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | Sep. 23, 2019 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Amount financed under vendor financing arrangement | $ 97.6 | |
Term of vendor financing arrangement | 2 years | |
Frontline Case | Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Damages awarded | $ 135.2 |
SCHEDULE II VALUATION AND QUA_2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for credit losses - accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 20,608 | $ 9,380 | $ 3,048 |
Additions: Charged to Costs and Expenses | 12,835 | 27,107 | 18,097 |
Deductions: Uncollectible Accounts Write-Offs (Recoveries) | 16,054 | 15,879 | 11,765 |
Balance at End of Period | 17,389 | 20,608 | 9,380 |
Allowance for credit losses - settlement assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 6,171 | 3,427 | 2,788 |
Additions: Charged to Costs and Expenses | 3,553 | 16,915 | 20,433 |
Deductions: Uncollectible Accounts Write-Offs (Recoveries) | 6,750 | 14,171 | 19,794 |
Balance at End of Period | 2,974 | 6,171 | 3,427 |
Reserve for sales allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 10,871 | 4,070 | 1,541 |
Additions: Charged to Costs and Expenses | 16,881 | 14,511 | 6,370 |
Deductions: Uncollectible Accounts Write-Offs (Recoveries) | 19,236 | 7,710 | 3,841 |
Balance at End of Period | 8,516 | 10,871 | 4,070 |
Allowance for credit and operating losses - check guarantee | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 2,102 | 3,921 | 5,065 |
Additions: Charged to Costs and Expenses | 10,160 | 10,092 | 13,346 |
Deductions: Uncollectible Accounts Write-Offs (Recoveries) | 9,725 | 11,911 | 14,490 |
Balance at End of Period | 2,536 | 2,102 | 3,921 |
Reserve for contract contingencies and processing errors | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 3,589 | 4,216 | 0 |
Additions: Charged to Costs and Expenses | 734 | 515 | 5,669 |
Deductions: Uncollectible Accounts Write-Offs (Recoveries) | 2,986 | 1,142 | 1,453 |
Balance at End of Period | 1,337 | 3,589 | 4,216 |
Reserve for cardholder losses | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 10,075 | 9,232 | 0 |
Additions: Charged to Costs and Expenses | 62,751 | 61,847 | 24,391 |
Deductions: Uncollectible Accounts Write-Offs (Recoveries) | 62,769 | 61,004 | 15,159 |
Balance at End of Period | 10,058 | 10,075 | 9,232 |
Deferred income tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 132,531 | 72,042 | 23,390 |
Additions: Charged to Costs and Expenses | (20,272) | 60,489 | 48,652 |
Deductions: Uncollectible Accounts Write-Offs (Recoveries) | 0 | 0 | 0 |
Balance at End of Period | $ 112,259 | $ 132,531 | $ 72,042 |