Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-16111 | |
Entity Registrant Name | GLOBAL PAYMENTS INC | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-2567903 | |
Entity Address, Address Line One | 3550 Lenox Road | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 770 | |
Local Phone Number | 829-8000 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | GPN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 281,539,612 | |
Entity Central Index Key | 0001123360 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenues | $ 2,156,254 | $ 1,990,007 |
Operating expenses: | ||
Cost of service | 957,158 | 925,246 |
Selling, general and administrative | 823,149 | 789,502 |
Total operating expenses | 1,780,307 | 1,714,748 |
Operating income | 375,947 | 275,259 |
Interest and other income | 1,711 | 4,234 |
Interest and other expense | (93,283) | (83,141) |
Total nonoperating income (expense) | (91,572) | (78,907) |
Income before income taxes and equity in income of equity method investments | 284,375 | 196,352 |
Income tax expense | 52,218 | 20,675 |
Income before equity in income of equity method investments | 232,157 | 175,677 |
Equity in income of equity method investments, net of tax | 17,479 | 22,733 |
Net income | 249,636 | 198,410 |
Net income attributable to noncontrolling interests, net of tax | (4,903) | (1,729) |
Net income attributable to Global Payments | $ 244,733 | $ 196,681 |
Earnings per share attributable to Global Payments: | ||
Basic earnings per share (USD per share) | $ 0.87 | $ 0.66 |
Diluted earnings per share (USD per share) | $ 0.87 | $ 0.66 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 249,636 | $ 198,410 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (32,960) | (33,567) |
Income tax benefit related to foreign currency translation adjustments | 670 | 750 |
Net unrealized gains on hedging activities | 8,934 | 994 |
Reclassification of net unrealized losses on hedging activities to interest expense | 9,445 | 10,838 |
Income tax expense related to hedging activities | (4,456) | (2,864) |
Other, net of tax | 0 | 7,775 |
Other comprehensive loss | (18,367) | (16,074) |
Comprehensive income | 231,269 | 182,336 |
Comprehensive loss attributable to noncontrolling interests | 441 | 4,245 |
Comprehensive income attributable to Global Payments | $ 231,710 | $ 186,581 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 2,045,277 | $ 1,979,308 |
Accounts receivable, net | 972,961 | 946,247 |
Settlement processing assets | 1,450,419 | 1,143,539 |
Prepaid expenses and other current assets | 683,753 | 641,891 |
Total current assets | 5,152,410 | 4,710,985 |
Goodwill | 24,793,799 | 24,813,274 |
Other intangible assets, net | 11,292,243 | 11,633,709 |
Property and equipment, net | 1,716,257 | 1,687,586 |
Deferred income taxes | 22,754 | 12,117 |
Other noncurrent assets | 2,457,797 | 2,422,042 |
Total assets | 45,435,260 | 45,279,713 |
Current liabilities: | ||
Settlement lines of credit | 497,345 | 484,202 |
Current portion of long-term debt | 120,226 | 78,505 |
Accounts payable and accrued liabilities | 2,550,112 | 2,542,256 |
Settlement processing obligations | 1,699,491 | 1,358,051 |
Total current liabilities | 4,867,174 | 4,463,014 |
Long-term debt | 11,723,798 | 11,414,809 |
Deferred income taxes | 2,725,980 | 2,793,427 |
Other noncurrent liabilities | 723,503 | 739,046 |
Total liabilities | 20,040,455 | 19,410,296 |
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 March 31, 2022 and December 31, 2021; 281,434,153 issued and outstanding at March 31, 2022 and 284,750,452 issued and outstanding at December 31, 2021 | 0 | 0 |
Paid-in capital | 22,338,086 | 22,880,261 |
Retained earnings | 3,068,683 | 2,982,122 |
Accumulated other comprehensive loss | (247,205) | (234,182) |
Total Global Payments shareholders’ equity | 25,159,564 | 25,628,201 |
Noncontrolling interests | 235,241 | 241,216 |
Total equity | 25,394,805 | 25,869,417 |
Total liabilities and equity | $ 45,435,260 | $ 45,279,713 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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) | 281,434,153 | 284,750,452 |
Common stock outstanding (shares) | 281,434,153 | 284,750,452 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 249,636 | $ 198,410 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 99,665 | 96,372 |
Amortization of acquired intangibles | 329,007 | 329,201 |
Amortization of capitalized contract costs | 25,906 | 21,050 |
Share-based compensation expense | 38,399 | 37,165 |
Provision for operating losses and credit losses | 28,523 | 23,405 |
Noncash lease expense | 21,555 | 27,066 |
Deferred income taxes | (80,841) | (56,390) |
Equity in income of equity method investments, net of tax | (17,479) | (22,733) |
Distribution received on investments | 6,022 | 438 |
Other, net | 6,127 | (6,285) |
Changes in operating assets and liabilities, net of the effects of business combinations: | ||
Accounts receivable | (34,191) | (37,141) |
Settlement processing assets and obligations, net | 48,198 | 21,714 |
Prepaid expenses and other assets | (115,904) | (33,128) |
Accounts payable and other liabilities | 25,377 | 262 |
Net cash provided by operating activities | 630,000 | 599,406 |
Cash flows from investing activities: | ||
Business combinations and other acquisitions, net of cash acquired | (4,726) | (11,074) |
Capital expenditures | (156,102) | (86,159) |
Other, net | 5 | 293 |
Net cash used in investing activities | (160,823) | (96,940) |
Cash flows from financing activities: | ||
Net borrowings from settlement lines of credit | 16,497 | 108,488 |
Proceeds from long-term debt | 1,529,157 | 1,987,005 |
Repayments of long-term debt | (1,176,496) | (1,575,435) |
Payments of debt issuance costs | (1,706) | (6,819) |
Repurchases of common stock | (649,654) | (802,955) |
Proceeds from stock issued under share-based compensation plans | 7,940 | 17,705 |
Common stock repurchased - share-based compensation plans | (26,295) | (39,437) |
Distributions to noncontrolling interests | (5,534) | 0 |
Dividends paid | (70,243) | (57,574) |
Net cash used in financing activities | (376,334) | (369,022) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (36,147) | (21,141) |
Increase in cash, cash equivalents and restricted cash | 56,696 | 112,303 |
Cash, cash equivalents and restricted cash, beginning of the period | 2,123,023 | 2,089,771 |
Cash, cash equivalents and restricted cash, end of the period | $ 2,179,719 | $ 2,202,074 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Total Global Payments Shareholders’ Equity | Number of Shares | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance at beginning of period (shares) at Dec. 31, 2020 | 298,332,000 | ||||||
Balance at beginning of period at Dec. 31, 2020 | $ 27,487,044 | $ 27,332,370 | $ 24,963,769 | $ 2,570,874 | $ (202,273) | $ 154,674 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 198,410 | 196,681 | 196,681 | 1,729 | |||
Other comprehensive loss | (16,074) | (10,100) | (10,100) | (5,974) | |||
Stock issued under share-based compensation plans (shares) | 1,003,000 | ||||||
Stock issued under share-based compensation plans | 17,705 | 17,705 | 17,705 | ||||
Common stock repurchased - share-based compensation plans (shares) | (222,000) | ||||||
Common stock repurchased - share-based compensation plans | (41,529) | (41,529) | (41,529) | ||||
Share-based compensation expense | $ 37,165 | 37,165 | 37,165 | ||||
Repurchase of common stock (shares) | (3,955,400) | (3,955,000) | |||||
Repurchases of common stock | $ (782,956) | (782,956) | (573,787) | (209,169) | |||
Cash dividends declared | (57,574) | (57,574) | (57,574) | ||||
Balance at end of period (shares) at Mar. 31, 2021 | 295,158,000 | ||||||
Balance at end of period at Mar. 31, 2021 | 26,842,191 | 26,691,762 | 24,403,323 | 2,500,812 | (212,373) | 150,429 | |
Balance at beginning of period (shares) at Dec. 31, 2021 | 284,750,000 | ||||||
Balance at beginning of period at Dec. 31, 2021 | 25,869,417 | 25,628,201 | 22,880,261 | 2,982,122 | (234,182) | 241,216 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 249,636 | 244,733 | 244,733 | 4,903 | |||
Other comprehensive loss | (18,367) | (13,023) | (13,023) | (5,344) | |||
Stock issued under share-based compensation plans (shares) | 1,395,000 | ||||||
Stock issued under share-based compensation plans | 7,940 | 7,940 | 7,940 | ||||
Common stock repurchased - share-based compensation plans (shares) | (195,000) | ||||||
Common stock repurchased - share-based compensation plans | (26,789) | (26,789) | (26,789) | ||||
Share-based compensation expense | $ 38,399 | 38,399 | 38,399 | ||||
Repurchase of common stock (shares) | (4,515,626) | (4,516,000) | |||||
Repurchases of common stock | $ (649,654) | (649,654) | (561,725) | (87,929) | |||
Distributions to noncontrolling interest | (5,534) | (5,534) | |||||
Cash dividends declared | (70,243) | (70,243) | (70,243) | ||||
Balance at end of period (shares) at Mar. 31, 2022 | 281,434,000 | ||||||
Balance at end of period at Mar. 31, 2022 | $ 25,394,805 | $ 25,159,564 | $ 22,338,086 | $ 3,068,683 | $ (247,205) | $ 235,241 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share (USD per share) | $ 0.25 | $ 0.195 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business, consolidation and presentation - We are a leading payments technology company delivering innovative software and services to our customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world. We operate in three reportable segments: Merchant Solutions, Issuer Solutions and Business and Consumer Solutions, which are described in "Note 12—Segment Information." Global Payments Inc. and its consolidated subsidiaries are referred to herein collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise. These unaudited consolidated financial statements include our accounts and those of our majority-owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated balance sheet as of December 31, 2021 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 but does not include all disclosures required by GAAP for annual financial statements. In the opinion of our management, all known adjustments necessary for a fair presentation of the results of the interim periods have been made. These adjustments consist of normal recurring accruals and estimates that affect the carrying amount of assets and liabilities. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. 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 and the invasion of Ukraine by Russia 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. In response to the invasion of Ukraine by Russia, economic sanctions were imposed on individuals and entities in Russia, including financial institutions, by governments around the world, including the U.S. and the European Union. As of March 31, 2022, we were in compliance with all applicable restrictions and sanctions, and our operations in Russia had not been significantly affected. As a result of additional sanctions imposed in April 2022 that will affect our ability to continue normal operations in Russia, we sold our merchant business in Russia effective April 29, 2022. Based on our current estimates, we expect to recognize a charge of approximately $130 million during the second quarter of 2022 associated with the sale, including recognition of the associated accumulated foreign currency translation losses. These unaudited consolidated financial statements reflect the financial statement effects based upon management’s estimates and assumptions utilizing the most currently available information. Recently issued pronouncements not yet adopted Accounting Standards Update ("ASU") 2021-08 — In October 2021, the Financial Accounting Standards Board ("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 Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers |
ACQUISITION
ACQUISITION | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | ACQUISITION On June 10, 2021, we acquired Zego, a real estate technology company that provides comprehensive resident experience management software and digital commerce solutions to property managers, primarily in the United States, for cash consideration of approximately $933 million. This acquisition aligns with our technology-enabled, software driven strategy and expands our business into a new vertical market. We accounted for this transaction as a business combination, which generally requires that we record the assets acquired and liabilities assumed at fair value as of the acquisition date. The provisional 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: Provisional Amounts at March 31, 2022 (in thousands) Cash and cash equivalents $ 67,374 Accounts receivable 1,017 Identifiable intangible assets 473,000 Property and equipment 575 Other assets 9,051 Accounts payable and accrued liabilities (71,006) Deferred income tax liabilities (13,902) Other liabilities (8,010) Total identifiable net assets 458,099 Goodwill 475,147 Total purchase consideration $ 933,246 As of March 31, 2022, 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. There were no measurement-period adjustments during the three months ended March 31, 2022. 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 |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following tables present a disaggregation of our revenues from contracts with customers by geography for each of our reportable segments for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 1,242,620 $ 385,243 $ 191,432 $ (15,451) $ 1,803,844 Europe 174,055 117,671 4,340 — 296,066 Asia Pacific 56,344 8,587 — (8,587) 56,344 $ 1,473,019 $ 511,501 $ 195,772 $ (24,038) $ 2,156,254 Three Months Ended March 31, 2021 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 1,080,470 $ 378,043 $ 240,633 $ (16,905) $ 1,682,241 Europe 132,934 117,412 2,952 — 253,298 Asia Pacific 54,468 4,796 — (4,796) 54,468 $ 1,267,872 $ 500,251 $ 243,585 $ (21,701) $ 1,990,007 The following table presents a disaggregation of our Merchant Solutions segment revenues by distribution channel for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Relationship-led $ 752,214 $ 668,556 Technology-enabled 720,805 599,316 $ 1,473,019 $ 1,267,872 ASC Topic 606, Revenues from Contracts with Customers ("ASC 606"), requires that we determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the three months ended March 31, 2022 and 2021, substantially all of our revenues were recognized over time. Supplemental balance sheet information related to contracts from customers as of March 31, 2022 and December 31, 2021 was as follows: Balance Sheet Location March 31, 2022 December 31, 2021 (in thousands) Assets: Capitalized costs to obtain customer contracts, net Other noncurrent assets $ 306,319 $ 291,914 Capitalized costs to fulfill customer contracts, net Other noncurrent assets $ 123,852 $ 113,366 Liabilities: Contract liabilities, net (current) Accounts payable and accrued liabilities $ 209,869 $ 227,783 Contract liabilities, net (noncurrent) Other noncurrent liabilities $ 45,512 $ 44,502 Net contract assets were not material at March 31, 2022 or at December 31, 2021. Revenue recognized for the three months ended March 31, 2022 and 2021 from contract liability balances at the beginning of each period was $84.1 million and $85.9 million, respectively. ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations. The purpose of this disclosure is to provide additional information about the amounts and expected timing of revenue to be recognized from the remaining performance obligations in our existing contracts. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at March 31, 2022. 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 $ 770,573 2023 859,699 2024 600,524 2025 478,419 2026 378,490 2027 246,544 2028 and thereafter 285,701 Total $ 3,619,950 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS As of March 31, 2022 and December 31, 2021, goodwill and other intangible assets consisted of the following: March 31, 2022 December 31, 2021 (in thousands) Goodwill $ 24,793,799 $ 24,813,274 Other intangible assets: Customer-related intangible assets $ 9,683,201 $ 9,694,083 Acquired technologies 2,960,242 2,962,154 Contract-based intangible assets 2,251,832 2,258,676 Trademarks and trade names 1,270,797 1,271,302 16,166,072 16,186,215 Less accumulated amortization: Customer-related intangible assets 2,756,357 2,587,586 Acquired technologies 1,466,246 1,367,513 Contract-based intangible assets 201,402 180,975 Trademarks and trade names 449,824 416,432 4,873,829 4,552,506 $ 11,292,243 $ 11,633,709 The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the three months ended March 31, 2022: Merchant Issuer Business and Total (in thousands) Balance at December 31, 2021 $ 14,063,682 $ 7,954,453 $ 2,795,139 $ 24,813,274 Effect of foreign currency translation (6,953) (7,541) (599) (15,093) Reallocation of goodwill — 407,713 (407,713) — Measurement period adjustments — (4,382) — (4,382) Balance at March 31, 2022 $ 14,056,729 $ 8,350,243 $ 2,386,827 $ 24,793,799 During the first quarter of 2022, the recently acquired operations of MineralTree were reassigned to the Issuer Solutions segment to reflect how the business will be managed going forward. As a result of this realignment, $407.7 million of goodwill was reallocated from the Business and Consumer Solutions segment to the Issuer Solutions segment. There were no accumulated impairment losses for goodwill as of March 31, 2022 or December 31, 2021. |
LONG-TERM DEBT AND LINES OF CRE
LONG-TERM DEBT AND LINES OF CREDIT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND LINES OF CREDIT | LONG-TERM DEBT AND LINES OF CREDIT As of March 31, 2022 and December 31, 2021, long-term debt consisted of the following: March 31, 2022 December 31, 2021 (in thousands) 3.750% senior notes due June 1, 2023 $ 555,918 $ 557,186 4.000% senior notes due June 1, 2023 557,690 559,338 1.500% senior notes due November 15, 2024 497,430 497,185 2.650% senior notes due February 15, 2025 995,219 994,797 1.200% senior notes due March 1, 2026 1,092,495 1,092,016 4.800% senior notes due April 1, 2026 795,199 798,024 2.150% senior notes due January 15, 2027 744,008 743,695 4.450% senior notes due June 1, 2028 477,096 478,194 3.200% senior notes due August 15, 2029 1,238,401 1,238,006 2.900% senior notes due May 15, 2030 990,489 990,196 2.900% senior notes due November 15, 2031 741,926 741,716 4.150% senior notes due August 15, 2049 740,235 740,146 Unsecured term loan facility 1,990,797 1,989,793 Unsecured revolving credit facility 370,000 — Finance lease liabilities 56,895 64,421 Other borrowings 226 8,601 Total long-term debt 11,844,024 11,493,314 Less current portion 120,226 78,505 Long-term debt, excluding current portion $ 11,723,798 $ 11,414,809 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 March 31, 2022, unamortized discount on senior notes was $11.4 million, and unamortized debt issuance costs on senior notes and the unsecured term loan facility were $57.6 million. At December 31, 2021, unamortized discount on senior notes was $11.7 million and unamortized debt issuance costs on our senior notes and the unsecured term loan facility were $60.7 million. The portion of unamortized debt issuance costs related to revolving credit facilities is included in other noncurrent assets. At March 31, 2022, unamortized debt issuance costs on the unsecured revolving credit facility were $9.0 million, and at December 31, 2021, unamortized debt issuance costs on the unsecured revolving credit facility were $9.9 million. At March 31, 2022, future maturities of long-term debt (excluding finance lease liabilities) are as follows by year (in thousands): Year Ending December 31, 2022 $ 50,173 2023 1,300,000 2024 2,620,000 2025 1,000,000 2026 1,850,000 2027 750,000 2028 and thereafter 4,200,000 Total $ 11,770,173 Long-Term Debt As of March 31, 2022, our senior notes had a total carrying amount of $9.4 billion and an estimated fair value of $9.1 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 March 31, 2022. Compliance with Covenants The unsecured term loan and revolving credit facility contain customary conditions to funding, affirmative covenants, negative covenants, financial covenants and events of default. As of March 31, 2022, financial covenants under the term loan facility required a leverage ratio of 3.50 to 1.00 and an interest coverage ratio of 3.00 to 1.00. We were in compliance with all applicable covenants as of March 31, 2022. Derivative Agreements We have interest rate swap agreements with financial institutions to hedge changes in cash flows attributable to interest rate risk on a portion of our variable-rate debt instruments. Net amounts to be received or paid under the swap agreements are reflected as adjustments to interest expense. Since we have designated the interest rate swap agreements as portfolio cash flow hedges, unrealized gains or losses resulting from adjusting the swaps to fair value are recorded as components of other comprehensive income (loss). The fair values of our interest rate swaps were determined based on the present value of the estimated future net cash flows using implied rates in the applicable yield curve as of the valuation date. These derivative instruments were classified within Level 2 of the valuation hierarchy. The table below presents information about our derivative financial instruments, designated as cash flow hedges, included in the consolidated balance sheets: Fair Values Derivative Financial Instruments Balance Sheet Location Weighted-Average Fixed Rate of Interest at March 31, 2022 Range of Maturity Dates at March 31, 2022 December 31, 2021 (in thousands) Interest rate swaps (Notional of $1,250 million at March 31, 2022 and December 31, 2021) Accounts payable and accrued liabilities 2.73% December 31, 2022 $ 11,765 $ 28,777 The table below presents the effects of our interest rate swaps on the consolidated statements of income and statements of comprehensive income for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Net unrealized gains recognized in other comprehensive income (loss) $ 8,934 $ 994 Net unrealized losses reclassified out of other comprehensive income (loss) to interest expense $ 9,445 $ 10,838 As of March 31, 2022, 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 $16.9 million. Interest Expense Interest expense was $89.3 million and $81.2 million for the three months ended March 31, 2022 and 2021, respectively. |
INCOME TAX
INCOME TAX | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | INCOME TAX Our effective income tax rate for the three months ended March 31, 2022 was 18.4%. Our effective income tax rate for the three months ended March 31, 2022 differed favorably from the U.S. statutory rate primarily as a result of foreign interest income not subject to tax, tax credits and the foreign-derived intangible income deduction. Our effective income tax rate for the three months ended March 31, 2021 was 10.5%. Our effective income tax rate for the three months ended March 31, 2021 differed favorably from the U.S. statutory rate primarily as a result of a change in the assessment of the need for a valuation allowance related to foreign tax credit carryforwards, foreign interest income not subject to tax, tax credits, the foreign-derived intangible income deduction and excess tax benefits of share-based awards. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY We repurchase our common stock mainly through open market repurchase plans and, at times, through accelerated share repurchase ("ASR") programs. During the three months ended March 31, 2022, we repurchased and retired 4,515,626 shares of our common stock at a cost, including commissions, of $649.7 million, or $143.95 per share. During the three months ended March 31, 2021, we repurchased and retired 3,955,400 shares of our common stock at a cost including commissions, of $783.0 million, or $198.00 per share. The activity for the three months ended March 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. As of March 31, 2022, the remaining amount available under our share repurchase program was $1,707.0 million. On April 28, 2022, our board of directors declared a dividend of $0.25 per share payable on June 24, 2022 to common shareholders of record as of June 10, 2022. |
SHARE-BASED AWARDS AND STOCK OP
SHARE-BASED AWARDS AND STOCK OPTIONS | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED AWARDS AND STOCK OPTIONS | SHARE-BASED AWARDS AND STOCK OPTIONS The following table summarizes share-based compensation expense and the related income tax benefit recognized for our share-based awards and stock options: Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Share-based compensation expense $ 38,399 $ 37,165 Income tax benefit $ 9,679 $ 8,399 Share-Based Awards The following table summarizes the changes in unvested restricted stock and performance awards for the three months ended March 31, 2022: Shares Weighted-Average (in thousands) Unvested at December 31, 2021 1,640 $184.90 Granted 1,428 138.21 Vested (535) 174.51 Forfeited (22) 167.59 Unvested at March 31, 2022 2,511 $160.68 The total fair value of restricted stock and performance awards vested during the three months ended March 31, 2022 and March 31, 2021 was $93.3 million and $86.1 million, respectively. For restricted stock and performance awards, we recognized compensation expense of $35.1 million and $33.5 million during the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, there was $333.5 million of unrecognized compensation expense related to unvested restricted stock and performance awards that we expect to recognize over a weighted-average period of 2.4 years. Stock Options The following table summarizes stock option activity for the three months ended March 31, 2022: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at December 31, 2021 1,172 $107.44 5.8 $47.4 Granted 154 136.02 Exercised (4) 16.89 Outstanding at March 31, 2022 1,322 $111.06 5.9 $48.5 Options vested and exercisable at March 31, 2022 1,053 $97.96 5.1 $48.4 We recognized compensation expense for stock options of $1.8 million and $2.4 million during the three months ended March 31, 2022 and 2021, respectively. The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2022 and 2021 was $0.6 million and $20.6 million, respectively. As of March 31, 2022, we had $14.0 million of unrecognized compensation expense related to unvested stock options that we expect to recognize over a weighted-average period of 2.3 years. The weighted-average grant-date fair value of stock options granted during the three months ended March 31, 2022 and 2021 was $48.88 and $65.99, respectively. Fair value was estimated on the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions: Three Months Ended March 31, 2022 March 31, 2021 Risk-free interest rate 1.87% 0.59% Expected volatility 40% 40% Dividend yield 0.56% 0.44% Expected term (years) 5 5 The risk-free interest rate was based on the yield of a zero coupon U.S. Treasury security with a maturity equal to the expected life of the option from the date of the grant. Our assumption on expected volatility was based on our historical volatility. The dividend yield assumption was determined using our average stock price over the preceding year and the annualized amount of our most current quarterly dividend per share. We based our assumptions on the expected term of the options on our analysis of the historical exercise patterns of the options and our assumption on the future exercise pattern of options. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREBasic earnings per share ("EPS") was computed by dividing net income attributable to Global Payments by the weighted-average number of shares outstanding during the period. Earnings available to common shareholders was the same as reported net income attributable to Global Payments for all periods presented. Diluted EPS is computed by dividing net income attributable to Global Payments by the weighted-average number of shares outstanding during the period, including the effect of share-based awards that would have a dilutive effect on EPS. All stock options with an exercise price lower than the average market share price of our common stock for the period are assumed to have a dilutive effect on EPS. The dilutive share base for the three months ended March 31, 2022 excluded approximately 388,355 shares related to stock options that would have an antidilutive effect on the computation of diluted earnings per share. There were no such shares for the three months ended March 31, 2021. The following table sets forth the computation of diluted weighted-average number of shares outstanding for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Basic weighted-average number of shares outstanding 282,100 296,425 Plus: Dilutive effect of stock options and other share-based awards 467 1,246 Diluted weighted-average number of shares outstanding 282,567 297,671 |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION Cash, cash equivalents and 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: March 31, 2022 December 31, 2021 (in thousands) Cash and cash equivalents $ 2,045,277 $ 1,979,308 Restricted cash included in prepaid expenses and other current assets 134,442 143,715 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 2,179,719 $ 2,123,023 Accounts payable and accrued liabilities At March 31, 2022 and December 31, 2021, accounts payable and accrued liabilities in the consolidated balance sheet included obligations totaling $3.6 million and $14.5 million, respectively, for employee termination benefits resulting from integration activities related to our merger with Total System Services, Inc. (the "Merger"). During the three months ended March 31, 2021, we recognized charges for employee termination benefits of $25.2 million, which included $0.5 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 were substantially complete as of December 31, 2021, and there were no significant charges recognized during the three months ended March 31, 2022. Any remaining obligations are expected to be paid within the next 12 months. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in the accumulated balances for each component of other comprehensive income (loss) were as follows for the three months ended March 31, 2022 and 2021: Foreign Currency Translation Gains (Losses) Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at December 31, 2021 $ (182,949) $ (48,490) $ (2,743) $ (234,182) Other comprehensive (loss) income (26,946) 13,923 — (13,023) Balance at March 31, 2022 $ (209,895) $ (34,567) $ (2,743) $ (247,205) Balance at December 31, 2020 $ (114,227) $ (81,543) $ (6,503) $ (202,273) Other comprehensive (loss) income (26,843) 8,968 7,775 (10,100) Balance at March 31, 2021 $ (141,070) $ (72,575) $ 1,272 $ (212,373) Other comprehensive loss attributable to noncontrolling interests, which relates only to foreign currency translation, was $5.3 million and $6.0 million for the three months ended March 31, 2022 and 2021, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATIONWe operate in three reportable segments: Merchant Solutions, Issuer Solutions and Business and Consumer Solutions. We evaluate performance and allocate resources based on the operating income of each operating segment. The operating income of each operating segment includes the revenues of the segment less expenses that are directly related to those revenues. Operating overhead, shared costs and share-based compensation costs are included in Corporate. Interest and other income, interest and other expense, income tax expense and equity in income of equity method investments, net of tax, are not allocated to the individual segments. We do not evaluate the performance of or allocate resources to our operating segments using asset data. The accounting policies of the reportable operating segments are the same as those described in our Annual Report on Form 10-K for the year ended December 31, 2021 and our summary of significant accounting policies in "Note 1 - Basis of Presentation and Summary of Significant Accounting Policies." During the first quarter of 2022, the recently acquired operations of MineralTree were reassigned to the Issuer Solutions segment to reflect how the business will be managed going forward. Information on segments and reconciliations to consolidated revenues, consolidated operating income and consolidated depreciation and amortization was as follows for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Revenues : (1) Merchant Solutions $ 1,473,019 $ 1,267,872 Issuer Solutions 511,501 500,251 Business and Consumer Solutions 195,772 243,585 Intersegment eliminations (24,038) (21,701) Consolidated revenues $ 2,156,254 $ 1,990,007 Operating income (loss) (1)(2) : Merchant Solutions $ 444,530 $ 339,989 Issuer Solutions 58,102 68,455 Business and Consumer Solutions 33,658 61,923 Corporate (160,343) (195,108) Consolidated operating income $ 375,947 $ 275,259 Depreciation and amortization : (1) Merchant Solutions $ 249,961 $ 250,596 Issuer Solutions 152,123 144,609 Business and Consumer Solutions 20,269 21,920 Corporate 6,319 8,448 Consolidated depreciation and amortization $ 428,672 $ 425,573 (1) Revenues, operating income and depreciation and amortization reflect the effects of acquired businesses from the respective acquisition dates. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Business, consolidation and presentation | Business, consolidation and presentation - We are a leading payments technology company delivering innovative software and services to our customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world. We operate in three reportable segments: Merchant Solutions, Issuer Solutions and Business and Consumer Solutions, which are described in "Note 12—Segment Information." Global Payments Inc. and its consolidated subsidiaries are referred to herein collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise. These unaudited consolidated financial statements include our accounts and those of our majority-owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated balance sheet as of December 31, 2021 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 but does not include all disclosures required by GAAP for annual financial statements. In the opinion of our management, all known adjustments necessary for a fair presentation of the results of the interim periods have been made. These adjustments consist of normal recurring accruals and estimates that affect the carrying amount of assets and liabilities. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. |
Use of estimates | Use of estimates - The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. In particular, the future magnitude, duration and effects of the COVID-19 pandemic and the invasion of Ukraine by Russia 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. In response to the invasion of Ukraine by Russia, economic sanctions were imposed on individuals and entities in Russia, including financial institutions, by governments around the world, including the U.S. and the European Union. As of March 31, 2022, we were in compliance with all applicable restrictions and sanctions, and our operations in Russia had not been significantly affected. As a result of additional sanctions imposed in April 2022 that will affect our ability to continue normal operations in Russia, we sold our merchant business in Russia effective April 29, 2022. Based on our current estimates, we expect to recognize a charge of approximately $130 million during the second quarter of 2022 associated with the sale, including recognition of the associated accumulated foreign currency translation losses. |
Recently issued pronouncements not yet adopted | Recently issued pronouncements not yet adopted Accounting Standards Update ("ASU") 2021-08 — In October 2021, the Financial Accounting Standards Board ("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 Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers |
ACQUISITION (Tables)
ACQUISITION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration were as follows: Provisional Amounts at March 31, 2022 (in thousands) Cash and cash equivalents $ 67,374 Accounts receivable 1,017 Identifiable intangible assets 473,000 Property and equipment 575 Other assets 9,051 Accounts payable and accrued liabilities (71,006) Deferred income tax liabilities (13,902) Other liabilities (8,010) Total identifiable net assets 458,099 Goodwill 475,147 Total purchase consideration $ 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 |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present a disaggregation of our revenues from contracts with customers by geography for each of our reportable segments for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 1,242,620 $ 385,243 $ 191,432 $ (15,451) $ 1,803,844 Europe 174,055 117,671 4,340 — 296,066 Asia Pacific 56,344 8,587 — (8,587) 56,344 $ 1,473,019 $ 511,501 $ 195,772 $ (24,038) $ 2,156,254 Three Months Ended March 31, 2021 Merchant Issuer Business and Intersegment Total (in thousands) Americas $ 1,080,470 $ 378,043 $ 240,633 $ (16,905) $ 1,682,241 Europe 132,934 117,412 2,952 — 253,298 Asia Pacific 54,468 4,796 — (4,796) 54,468 $ 1,267,872 $ 500,251 $ 243,585 $ (21,701) $ 1,990,007 The following table presents a disaggregation of our Merchant Solutions segment revenues by distribution channel for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Relationship-led $ 752,214 $ 668,556 Technology-enabled 720,805 599,316 $ 1,473,019 $ 1,267,872 |
Schedule of Contracts with Customers | Supplemental balance sheet information related to contracts from customers as of March 31, 2022 and December 31, 2021 was as follows: Balance Sheet Location March 31, 2022 December 31, 2021 (in thousands) Assets: Capitalized costs to obtain customer contracts, net Other noncurrent assets $ 306,319 $ 291,914 Capitalized costs to fulfill customer contracts, net Other noncurrent assets $ 123,852 $ 113,366 Liabilities: Contract liabilities, net (current) Accounts payable and accrued liabilities $ 209,869 $ 227,783 Contract liabilities, net (noncurrent) Other noncurrent liabilities $ 45,512 $ 44,502 |
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 March 31, 2022. 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 $ 770,573 2023 859,699 2024 600,524 2025 478,419 2026 378,490 2027 246,544 2028 and thereafter 285,701 Total $ 3,619,950 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | As of March 31, 2022 and December 31, 2021, goodwill and other intangible assets consisted of the following: March 31, 2022 December 31, 2021 (in thousands) Goodwill $ 24,793,799 $ 24,813,274 Other intangible assets: Customer-related intangible assets $ 9,683,201 $ 9,694,083 Acquired technologies 2,960,242 2,962,154 Contract-based intangible assets 2,251,832 2,258,676 Trademarks and trade names 1,270,797 1,271,302 16,166,072 16,186,215 Less accumulated amortization: Customer-related intangible assets 2,756,357 2,587,586 Acquired technologies 1,466,246 1,367,513 Contract-based intangible assets 201,402 180,975 Trademarks and trade names 449,824 416,432 4,873,829 4,552,506 $ 11,292,243 $ 11,633,709 |
Schedule of Goodwill | The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the three months ended March 31, 2022: Merchant Issuer Business and Total (in thousands) Balance at December 31, 2021 $ 14,063,682 $ 7,954,453 $ 2,795,139 $ 24,813,274 Effect of foreign currency translation (6,953) (7,541) (599) (15,093) Reallocation of goodwill — 407,713 (407,713) — Measurement period adjustments — (4,382) — (4,382) Balance at March 31, 2022 $ 14,056,729 $ 8,350,243 $ 2,386,827 $ 24,793,799 |
LONG-TERM DEBT AND LINES OF C_2
LONG-TERM DEBT AND LINES OF CREDIT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | As of March 31, 2022 and December 31, 2021, long-term debt consisted of the following: March 31, 2022 December 31, 2021 (in thousands) 3.750% senior notes due June 1, 2023 $ 555,918 $ 557,186 4.000% senior notes due June 1, 2023 557,690 559,338 1.500% senior notes due November 15, 2024 497,430 497,185 2.650% senior notes due February 15, 2025 995,219 994,797 1.200% senior notes due March 1, 2026 1,092,495 1,092,016 4.800% senior notes due April 1, 2026 795,199 798,024 2.150% senior notes due January 15, 2027 744,008 743,695 4.450% senior notes due June 1, 2028 477,096 478,194 3.200% senior notes due August 15, 2029 1,238,401 1,238,006 2.900% senior notes due May 15, 2030 990,489 990,196 2.900% senior notes due November 15, 2031 741,926 741,716 4.150% senior notes due August 15, 2049 740,235 740,146 Unsecured term loan facility 1,990,797 1,989,793 Unsecured revolving credit facility 370,000 — Finance lease liabilities 56,895 64,421 Other borrowings 226 8,601 Total long-term debt 11,844,024 11,493,314 Less current portion 120,226 78,505 Long-term debt, excluding current portion $ 11,723,798 $ 11,414,809 |
Schedule of Maturities of Long-Term Debt | At March 31, 2022, future maturities of long-term debt (excluding finance lease liabilities) are as follows by year (in thousands): Year Ending December 31, 2022 $ 50,173 2023 1,300,000 2024 2,620,000 2025 1,000,000 2026 1,850,000 2027 750,000 2028 and thereafter 4,200,000 Total $ 11,770,173 |
Schedule of Derivative Instruments | The table below presents information about our derivative financial instruments, designated as cash flow hedges, included in the consolidated balance sheets: Fair Values Derivative Financial Instruments Balance Sheet Location Weighted-Average Fixed Rate of Interest at March 31, 2022 Range of Maturity Dates at March 31, 2022 December 31, 2021 (in thousands) Interest rate swaps (Notional of $1,250 million at March 31, 2022 and December 31, 2021) Accounts payable and accrued liabilities 2.73% December 31, 2022 $ 11,765 $ 28,777 |
Schedule of Derivative Instrument Effect on Other Comprehensive Income (Loss) | The table below presents the effects of our interest rate swaps on the consolidated statements of income and statements of comprehensive income for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Net unrealized gains recognized in other comprehensive income (loss) $ 8,934 $ 994 Net unrealized losses reclassified out of other comprehensive income (loss) to interest expense $ 9,445 $ 10,838 |
SHARE-BASED AWARDS AND STOCK _2
SHARE-BASED AWARDS AND STOCK OPTIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Share-based compensation expense $ 38,399 $ 37,165 Income tax benefit $ 9,679 $ 8,399 |
Schedule of Changes in Unvested Restricted Stock Awards and Performance Units | The following table summarizes the changes in unvested restricted stock and performance awards for the three months ended March 31, 2022: Shares Weighted-Average (in thousands) Unvested at December 31, 2021 1,640 $184.90 Granted 1,428 138.21 Vested (535) 174.51 Forfeited (22) 167.59 Unvested at March 31, 2022 2,511 $160.68 |
Schedule of Changes in Stock Option Activity | The following table summarizes stock option activity for the three months ended March 31, 2022: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (years) (in millions) Outstanding at December 31, 2021 1,172 $107.44 5.8 $47.4 Granted 154 136.02 Exercised (4) 16.89 Outstanding at March 31, 2022 1,322 $111.06 5.9 $48.5 Options vested and exercisable at March 31, 2022 1,053 $97.96 5.1 $48.4 |
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: Three Months Ended March 31, 2022 March 31, 2021 Risk-free interest rate 1.87% 0.59% Expected volatility 40% 40% Dividend yield 0.56% 0.44% Expected term (years) 5 5 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted-Average Shares Outstanding | The following table sets forth the computation of diluted weighted-average number of shares outstanding for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Basic weighted-average number of shares outstanding 282,100 296,425 Plus: Dilutive effect of stock options and other share-based awards 467 1,246 Diluted weighted-average number of shares outstanding 282,567 297,671 |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Reconciliation 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: March 31, 2022 December 31, 2021 (in thousands) Cash and cash equivalents $ 2,045,277 $ 1,979,308 Restricted cash included in prepaid expenses and other current assets 134,442 143,715 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 2,179,719 $ 2,123,023 |
Schedule of Reconciliation 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: March 31, 2022 December 31, 2021 (in thousands) Cash and cash equivalents $ 2,045,277 $ 1,979,308 Restricted cash included in prepaid expenses and other current assets 134,442 143,715 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 2,179,719 $ 2,123,023 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The changes in the accumulated balances for each component of other comprehensive income (loss) were as follows for the three months ended March 31, 2022 and 2021: Foreign Currency Translation Gains (Losses) Unrealized Gains (Losses) on Hedging Activities Other Accumulated Other Comprehensive Loss (in thousands) Balance at December 31, 2021 $ (182,949) $ (48,490) $ (2,743) $ (234,182) Other comprehensive (loss) income (26,946) 13,923 — (13,023) Balance at March 31, 2022 $ (209,895) $ (34,567) $ (2,743) $ (247,205) Balance at December 31, 2020 $ (114,227) $ (81,543) $ (6,503) $ (202,273) Other comprehensive (loss) income (26,843) 8,968 7,775 (10,100) Balance at March 31, 2021 $ (141,070) $ (72,575) $ 1,272 $ (212,373) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information on segments and reconciliations to consolidated revenues, consolidated operating income and consolidated depreciation and amortization was as follows for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Revenues : (1) Merchant Solutions $ 1,473,019 $ 1,267,872 Issuer Solutions 511,501 500,251 Business and Consumer Solutions 195,772 243,585 Intersegment eliminations (24,038) (21,701) Consolidated revenues $ 2,156,254 $ 1,990,007 Operating income (loss) (1)(2) : Merchant Solutions $ 444,530 $ 339,989 Issuer Solutions 58,102 68,455 Business and Consumer Solutions 33,658 61,923 Corporate (160,343) (195,108) Consolidated operating income $ 375,947 $ 275,259 Depreciation and amortization : (1) Merchant Solutions $ 249,961 $ 250,596 Issuer Solutions 152,123 144,609 Business and Consumer Solutions 20,269 21,920 Corporate 6,319 8,448 Consolidated depreciation and amortization $ 428,672 $ 425,573 (1) Revenues, operating income and depreciation and amortization reflect the effects of acquired businesses from the respective acquisition dates. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2022USD ($) | Mar. 31, 2022segment | |
Accounting Policies [Abstract] | ||
Number of reportable segments | segment | 3 | |
Forecast | Invasion of Ukraine by Russia | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Expected business interruption loss | $ | $ 130 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - Zego $ in Millions | Jun. 10, 2021USD ($) |
Business Acquisition [Line Items] | |
Cash consideration paid to acquire business | $ 933 |
Merchants Solutions | |
Business Acquisition [Line Items] | |
Goodwill | $ 475.1 |
ACQUISITION - Schedule of Recog
ACQUISITION - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 10, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 24,793,799 | $ 24,813,274 | |
Zego | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 67,374 | ||
Accounts receivable | 1,017 | ||
Identifiable intangible assets | 473,000 | $ 473,000 | |
Property and equipment | 575 | ||
Other assets | 9,051 | ||
Accounts payable and accrued liabilities | (71,006) | ||
Deferred income tax liabilities | (13,902) | ||
Other liabilities | (8,010) | ||
Total identifiable net assets | 458,099 | ||
Goodwill | 475,147 | ||
Total purchase consideration | $ 933,246 |
ACQUISITION - Fair Value of Int
ACQUISITION - Fair Value of Intangible Assets (Details) - Zego - USD ($) $ in Thousands | Jun. 10, 2021 | Mar. 31, 2022 |
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 473,000 | $ 473,000 |
Weighted-Average Estimated Amortization Periods | 14 years | |
Customer-related intangible assets | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 208,000 | |
Weighted-Average Estimated Amortization Periods | 13 years | |
Contract-based intangible assets | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 119,000 | |
Weighted-Average Estimated Amortization Periods | 20 years | |
Acquired technologies | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 124,000 | |
Weighted-Average Estimated Amortization Periods | 6 years | |
Trademarks and trade names | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 22,000 | |
Weighted-Average Estimated Amortization Periods | 15 years |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 2,156,254 | $ 1,990,007 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1,803,844 | 1,682,241 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 296,066 | 253,298 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 56,344 | 54,468 |
Operating Segments | Merchant Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1,473,019 | 1,267,872 |
Operating Segments | Merchant Solutions | Relationship-led | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 752,214 | 668,556 |
Operating Segments | Merchant Solutions | Technology-enabled | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 720,805 | 599,316 |
Operating Segments | Merchant Solutions | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1,242,620 | 1,080,470 |
Operating Segments | Merchant Solutions | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 174,055 | 132,934 |
Operating Segments | Merchant Solutions | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 56,344 | 54,468 |
Operating Segments | Issuer Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 511,501 | 500,251 |
Operating Segments | Issuer Solutions | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 385,243 | 378,043 |
Operating Segments | Issuer Solutions | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 117,671 | 117,412 |
Operating Segments | Issuer Solutions | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 8,587 | 4,796 |
Operating Segments | Business and Consumer Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 195,772 | 243,585 |
Operating Segments | Business and Consumer Solutions | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 191,432 | 240,633 |
Operating Segments | Business and Consumer Solutions | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 4,340 | 2,952 |
Operating Segments | Business and Consumer Solutions | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (24,038) | (21,701) |
Intersegment Eliminations | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (15,451) | (16,905) |
Intersegment Eliminations | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Intersegment Eliminations | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ (8,587) | $ (4,796) |
REVENUES - Supplemental Balance
REVENUES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | ||
Contract liabilities, net (current) | $ 209,869 | $ 227,783 |
Contract liabilities, net (noncurrent) | 45,512 | 44,502 |
Obtain Contract | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized costs, net | 306,319 | 291,914 |
Fulfill Contract | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized costs, net | $ 123,852 | $ 113,366 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized from contract liabilities balances at beginning of the period | $ 84.1 | $ 85.9 |
REVENUES - Remaining Performanc
REVENUES - Remaining Performance Obligations (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 3,619,950 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 770,573 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 859,699 |
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 | $ 600,524 |
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 | $ 478,419 |
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 | $ 378,490 |
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 | $ 246,544 |
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]: 2028-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 285,701 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 24,793,799 | $ 24,813,274 |
Other intangible assets | 16,166,072 | 16,186,215 |
Less accumulated amortization on intangible assets | 4,873,829 | 4,552,506 |
Other intangible assets, net | 11,292,243 | 11,633,709 |
Customer-related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 9,683,201 | 9,694,083 |
Less accumulated amortization on intangible assets | 2,756,357 | 2,587,586 |
Acquired technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 2,960,242 | 2,962,154 |
Less accumulated amortization on intangible assets | 1,466,246 | 1,367,513 |
Contract-based intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 2,251,832 | 2,258,676 |
Less accumulated amortization on intangible assets | 201,402 | 180,975 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 1,270,797 | 1,271,302 |
Less accumulated amortization on intangible assets | $ 449,824 | $ 416,432 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill Roll-Forward (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, balance at beginning of period | $ 24,813,274,000 | |
Effect of foreign currency translation | (15,093,000) | |
Reallocation of goodwill | 0 | |
Measurement period adjustments | (4,382,000) | |
Goodwill, balance at end of period | 24,793,799,000 | |
Accumulated impairment losses for goodwill | 0 | $ 0 |
Merchant Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, balance at beginning of period | 14,063,682,000 | |
Effect of foreign currency translation | (6,953,000) | |
Reallocation of goodwill | 0 | |
Measurement period adjustments | 0 | |
Goodwill, balance at end of period | 14,056,729,000 | |
Issuer Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, balance at beginning of period | 7,954,453,000 | |
Effect of foreign currency translation | (7,541,000) | |
Reallocation of goodwill | 407,713,000 | |
Measurement period adjustments | (4,382,000) | |
Goodwill, balance at end of period | 8,350,243,000 | |
Business and Consumer Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, balance at beginning of period | 2,795,139,000 | |
Effect of foreign currency translation | (599,000) | |
Reallocation of goodwill | (407,713,000) | |
Measurement period adjustments | 0 | |
Goodwill, balance at end of period | $ 2,386,827,000 |
LONG-TERM DEBT AND LINES OF C_3
LONG-TERM DEBT AND LINES OF CREDIT - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Finance lease liabilities | $ 56,895 | $ 64,421 |
Total long-term debt | 11,844,024 | 11,493,314 |
Less current portion | 120,226 | 78,505 |
Long-term debt, excluding current portion | 11,723,798 | 11,414,809 |
Unsecured term loan facility | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | 1,990,797 | 1,989,793 |
Unsecured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | 370,000 | 0 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | 226 | 8,601 |
3.750% senior notes due June 1, 2023 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 555,918 | 557,186 |
Stated interest rate (as a percent) | 3.75% | |
4.000% senior notes due June 1, 2023 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 557,690 | 559,338 |
Stated interest rate (as a percent) | 4.00% | |
1.500% senior notes due November 15, 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 497,430 | 497,185 |
Stated interest rate (as a percent) | 1.50% | |
2.650% senior notes due February 15, 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 995,219 | 994,797 |
Stated interest rate (as a percent) | 2.65% | |
1.200% senior notes due March 1, 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 1,092,495 | 1,092,016 |
Stated interest rate (as a percent) | 1.20% | |
4.800% senior notes due April 1, 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 795,199 | 798,024 |
Stated interest rate (as a percent) | 4.80% | |
2.150% senior notes due January 15, 2027 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 744,008 | 743,695 |
Stated interest rate (as a percent) | 2.15% | |
4.450% senior notes due June 1, 2028 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 477,096 | 478,194 |
Stated interest rate (as a percent) | 4.45% | |
3.200% senior notes due August 15, 2029 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 1,238,401 | 1,238,006 |
Stated interest rate (as a percent) | 3.20% | |
2.900% senior notes due May 15, 2030 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 990,489 | 990,196 |
Stated interest rate (as a percent) | 2.90% | |
2.900% senior notes due November 15, 2031 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 741,926 | 741,716 |
Stated interest rate (as a percent) | 2.90% | |
4.150% senior notes due August 15, 2049 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 740,235 | $ 740,146 |
Stated interest rate (as a percent) | 4.15% |
LONG-TERM DEBT AND LINES OF C_4
LONG-TERM DEBT AND LINES OF CREDIT - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 11,770,173 | ||
Interest expense | 89,300 | $ 81,200 | |
Interest rate swap | |||
Debt Instrument [Line Items] | |||
Accumulated other comprehensive income (loss) related to interest rate | (16,900) | ||
Senior notes and term loans | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | 57,600 | ||
Senior notes | |||
Debt Instrument [Line Items] | |||
Unamortized discount | 11,400 | $ 11,700 | |
Long-term debt | 9,400,000 | ||
Fair value of debt instrument | 9,100,000 | ||
Term loans | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | 60,700 | ||
Unsecured debt | Unsecured revolving credit facility | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 9,000 | ||
Unsecured debt | Unsecured term loan facility | |||
Debt Instrument [Line Items] | |||
Minimum leverage ratio | 3.50 | ||
Minimum interest coverage ratio | 3 | ||
Line of credit | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 9,900 |
LONG-TERM DEBT AND LINES OF C_5
LONG-TERM DEBT AND LINES OF CREDIT - Maturities of Long-Term Debt (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 50,173 |
2023 | 1,300,000 |
2024 | 2,620,000 |
2025 | 1,000,000 |
2026 | 1,850,000 |
2027 | 750,000 |
2028 and thereafter | 4,200,000 |
Total | $ 11,770,173 |
LONG-TERM DEBT AND LINES OF C_6
LONG-TERM DEBT AND LINES OF CREDIT - Derivative Instruments (Details) - Interest rate swap - Accounts payable and accrued liabilities - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Notional amount of derivative | $ 1,250,000 | $ 1,250,000 |
Weighted-average fixed rate of interest (as a percent) | 2.73% | |
Interest rate swaps | $ 11,765 | $ 28,777 |
LONG-TERM DEBT AND LINES OF C_7
LONG-TERM DEBT AND LINES OF CREDIT - Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Net unrealized gains recognized in other comprehensive income (loss) | $ 8,934 | $ 994 |
Net unrealized losses reclassified out of other comprehensive income (loss) to interest expense | $ 9,445 | $ 10,838 |
INCOME TAX (Details)
INCOME TAX (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | (18.40%) | 10.50% |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 28, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Feb. 10, 2021 |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchased and retired (shares) | 4,515,626 | 3,955,400 | ||
Value of stock repurchased and retired | $ 649,654 | $ 782,956 | ||
Average cost per share (USD per share) | $ 143.95 | $ 198 | ||
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 | $ 500,000 | |||
Remaining authorized repurchase amount (up to) | $ 1,707,000 | |||
Subsequent Event | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Dividends declared (USD per share) | $ 0.25 |
SHARE-BASED AWARDS AND STOCK _3
SHARE-BASED AWARDS AND STOCK OPTIONS - Share-Based Compensation Expense and Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 38,399 | $ 37,165 |
Income tax benefit | $ 9,679 | $ 8,399 |
SHARE-BASED AWARDS AND STOCK _4
SHARE-BASED AWARDS AND STOCK OPTIONS - Share-Based Awards (Details) - Restricted Stock Awards and Performance Units shares in Thousands | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Shares | |
Beginning balance (shares) | shares | 1,640 |
Granted (shares) | shares | 1,428 |
Vested (shares) | shares | (535) |
Forfeited (shares) | shares | (22) |
Ending balance (shares) | shares | 2,511 |
Weighted-Average Grant-Date Fair Value | |
Beginning balance (USD per share) | $ / shares | $ 184.90 |
Granted (USD per share) | $ / shares | 138.21 |
Vested (USD per share) | $ / shares | 174.51 |
Forfeited (USD per share) | $ / shares | 167.59 |
Ending balance (USD per share) | $ / shares | $ 160.68 |
SHARE-BASED AWARDS AND STOCK _5
SHARE-BASED AWARDS AND STOCK OPTIONS - Share-Based Awards - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 38,399 | $ 37,165 |
Restricted Stock Awards and Performance Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of share-based awards vested | 93,300 | 86,100 |
Share-based compensation expense | 35,100 | $ 33,500 |
Compensation not yet recognized | $ 333,500 | |
Weighted-average period of unrecognized compensation cost | 2 years 4 months 24 days |
SHARE-BASED AWARDS AND STOCK _6
SHARE-BASED AWARDS AND STOCK OPTIONS - Stock Option Activity (Details) - Employee stock option - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Options | ||
Outstanding at beginning of period (shares) | 1,172 | |
Granted (shares) | 154 | |
Exercised (shares) | (4) | |
Outstanding at end of period (shares) | 1,322 | 1,172 |
Options vested and exercisable (shares) | 1,053 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period (USD per share) | $ 107.44 | |
Granted (USD per share) | 136.02 | |
Exercised (USD per share) | 16.89 | |
Outstanding at end of period (USD per share) | 111.06 | $ 107.44 |
Options vested and exercisable (USD per share) | $ 97.96 | |
Weighted-Average Remaining Contractual Term | ||
Outstanding | 5 years 10 months 24 days | 5 years 9 months 18 days |
Options vested and exercisable | 5 years 1 month 6 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 48.5 | $ 47.4 |
Options vested and exercisable | $ 48.4 |
SHARE-BASED AWARDS AND STOCK _7
SHARE-BASED AWARDS AND STOCK OPTIONS - Stock Options - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 38,399 | $ 37,165 |
Employee stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 1,800 | 2,400 |
Aggregate intrinsic value of stock options exercised | 600 | $ 20,600 |
Total unrecognized compensation cost | $ 14,000 | |
Weighted-average period of unrecognized compensation cost | 2 years 3 months 18 days | |
Weighted average grant date fair value for each option granted (USD per share) | $ 48.88 | $ 65.99 |
SHARE-BASED AWARDS AND STOCK _8
SHARE-BASED AWARDS AND STOCK OPTIONS - Valuation Assumptions (Details) - Employee stock option | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate (as a percent) | 1.87% | 0.59% |
Expected volatility (as a percent) | 40.00% | 40.00% |
Dividend yield (as a percent) | 0.56% | 0.44% |
Expected term (years) | 5 years | 5 years |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (shares) | 388,355 | 0 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Weighted-Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average number of shares outstanding (shares) | 282,100 | 296,425 |
Plus: Dilutive effect of stock options and other share-based awards (shares) | 467 | 1,246 |
Diluted weighted-average number of shares outstanding (shares) | 282,567 | 297,671 |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 2,045,277 | $ 1,979,308 | ||
Restricted cash included in prepaid expenses and other current assets | 134,442 | 143,715 | ||
Cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 2,179,719 | $ 2,123,023 | $ 2,202,074 | $ 2,089,771 |
SUPPLEMENTAL BALANCE SHEET IN_4
SUPPLEMENTAL BALANCE SHEET INFORMATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |||
Employee termination benefits obligations | $ 3.6 | $ 14.5 | |
Charges for employee termination benefits | $ 0 | $ 25.2 | |
Share-based compensation expense associated with equity awards held by terminated employees | $ 0.5 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 25,628,201 | |
Other comprehensive (loss) income | (13,023) | $ (10,100) |
Balance at end of period | 25,159,564 | |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (234,182) | (202,273) |
Balance at end of period | (247,205) | (212,373) |
Foreign Currency Translation Gains (Losses) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (182,949) | (114,227) |
Other comprehensive (loss) income | (26,946) | (26,843) |
Balance at end of period | (209,895) | (141,070) |
Unrealized Gains (Losses) on Hedging Activities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (48,490) | (81,543) |
Other comprehensive (loss) income | 13,923 | 8,968 |
Balance at end of period | (34,567) | (72,575) |
Other | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (2,743) | (6,503) |
Other comprehensive (loss) income | 0 | 7,775 |
Balance at end of period | $ (2,743) | $ 1,272 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity [Abstract] | ||
Foreign currency translation adjustment, other comprehensive loss | $ 5.3 | $ 6 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 3 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 2,156,254 | $ 1,990,007 |
Operating income (loss) | 375,947 | 275,259 |
Depreciation and amortization | 428,672 | 425,573 |
Operating segments | Merchant Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,473,019 | 1,267,872 |
Operating income (loss) | 444,530 | 339,989 |
Depreciation and amortization | 249,961 | 250,596 |
Operating segments | Issuer Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenues | 511,501 | 500,251 |
Operating income (loss) | 58,102 | 68,455 |
Depreciation and amortization | 152,123 | 144,609 |
Operating segments | Business and Consumer Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenues | 195,772 | 243,585 |
Operating income (loss) | 33,658 | 61,923 |
Depreciation and amortization | 20,269 | 21,920 |
Intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | (24,038) | (21,701) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | (160,343) | (195,108) |
Depreciation and amortization | 6,319 | 8,448 |
Acquisition-related costs | $ 48,200 | $ 90,100 |