Document
false--12-31Q3201900011233603.003.5015000000.010.030.010.03002000000001579619823005449491579619823005449495500000009500000007500000001500000000.05000000000005000000500000000P3MP1YP1YP1YP7Y2330000016700000 0001123360 2019-01-01 2019-09-30 0001123360 gpn:SICOMSystemsInc.Member 2019-01-01 2019-09-30 0001123360 gpn:TotalSystemServicesInc.Member 2019-01-01 2019-09-30 0001123360 gpn:AdvancedMDInc.Member 2019-01-01 2019-09-30 0001123360 2019-10-27 0001123360 2019-07-01 2019-09-30 0001123360 2018-07-01 2018-09-30 0001123360 2018-01-01 2018-09-30 0001123360 2019-09-30 0001123360 2018-12-31 0001123360 2017-12-31 0001123360 2018-09-30 0001123360 us-gaap:ParentMember 2018-07-01 2018-09-30 0001123360 us-gaap:ParentMember 2018-06-30 0001123360 us-gaap:NoncontrollingInterestMember 2018-07-01 2018-09-30 0001123360 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001123360 us-gaap:RetainedEarningsMember 2018-09-30 0001123360 us-gaap:CommonStockMember 2018-09-30 0001123360 us-gaap:NoncontrollingInterestMember 2018-09-30 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001123360 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001123360 us-gaap:NoncontrollingInterestMember 2018-06-30 0001123360 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001123360 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001123360 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001123360 us-gaap:ParentMember 2018-09-30 0001123360 us-gaap:RetainedEarningsMember 2018-06-30 0001123360 us-gaap:CommonStockMember 2018-06-30 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001123360 2018-06-30 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001123360 us-gaap:CommonStockMember 2019-06-30 0001123360 us-gaap:RetainedEarningsMember 2019-06-30 0001123360 us-gaap:NoncontrollingInterestMember 2019-09-30 0001123360 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001123360 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001123360 us-gaap:ParentMember 2019-07-01 2019-09-30 0001123360 us-gaap:NoncontrollingInterestMember 2019-07-01 2019-09-30 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001123360 us-gaap:RetainedEarningsMember 2019-09-30 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001123360 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001123360 us-gaap:NoncontrollingInterestMember 2019-06-30 0001123360 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001123360 us-gaap:CommonStockMember 2019-09-30 0001123360 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001123360 us-gaap:ParentMember 2019-09-30 0001123360 us-gaap:ParentMember 2019-06-30 0001123360 2019-06-30 0001123360 us-gaap:RetainedEarningsMember 2018-01-01 2018-09-30 0001123360 us-gaap:ParentMember 2018-01-01 2018-09-30 0001123360 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-09-30 0001123360 us-gaap:RetainedEarningsMember 2017-12-31 0001123360 us-gaap:ParentMember 2018-01-01 0001123360 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-09-30 0001123360 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001123360 us-gaap:CommonStockMember 2018-01-01 2018-09-30 0001123360 us-gaap:ParentMember 2017-12-31 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-09-30 0001123360 us-gaap:RetainedEarningsMember 2018-01-01 0001123360 2018-01-01 0001123360 us-gaap:CommonStockMember 2017-12-31 0001123360 us-gaap:NoncontrollingInterestMember 2017-12-31 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 0001123360 us-gaap:ParentMember 2019-01-01 2019-09-30 0001123360 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-09-30 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001123360 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001123360 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0001123360 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001123360 us-gaap:CommonStockMember 2019-01-01 2019-09-30 0001123360 us-gaap:NoncontrollingInterestMember 2018-12-31 0001123360 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 0001123360 us-gaap:RetainedEarningsMember 2018-12-31 0001123360 us-gaap:CommonStockMember 2018-12-31 0001123360 us-gaap:ParentMember 2018-12-31 0001123360 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001123360 gpn:TotalSystemServicesInc.Member 2019-09-18 2019-09-18 0001123360 gpn:TotalSystemServicesInc.Member 2019-09-18 0001123360 gpn:SICOMSystemsInc.Member 2019-09-30 0001123360 gpn:TotalSystemServicesInc.Member 2018-01-01 2018-09-30 0001123360 gpn:SICOMSystemsInc.Member 2018-10-17 0001123360 gpn:SICOMSystemsInc.Member 2018-10-17 2018-10-17 0001123360 gpn:AdvancedMDInc.Member 2018-09-04 2018-09-04 0001123360 gpn:TotalSystemServicesInc.Member 2019-07-01 2019-09-30 0001123360 gpn:AdvancedMDInc.Member us-gaap:TrademarksAndTradeNamesMember 2018-09-04 2018-09-04 0001123360 gpn:AdvancedMDInc.Member us-gaap:CustomerRelatedIntangibleAssetsMember 2018-09-04 2018-09-04 0001123360 gpn:AdvancedMDInc.Member us-gaap:TechnologyBasedIntangibleAssetsMember 2018-09-04 2018-09-04 0001123360 gpn:AdvancedMDInc.Member us-gaap:TechnologyBasedIntangibleAssetsMember 2018-09-04 0001123360 gpn:AdvancedMDInc.Member us-gaap:TrademarksAndTradeNamesMember 2018-09-04 0001123360 gpn:AdvancedMDInc.Member 2018-09-04 0001123360 gpn:AdvancedMDInc.Member us-gaap:CustomerRelatedIntangibleAssetsMember 2018-09-04 0001123360 gpn:TotalSystemServicesInc.Member 2018-07-01 2018-09-30 0001123360 gpn:TotalSystemServicesInc.Member 2019-09-30 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:ContractBasedIntangibleAssetsMember 2019-09-18 2019-09-18 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:TechnologyBasedIntangibleAssetsMember 2019-09-18 2019-09-18 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:TechnologyBasedIntangibleAssetsMember 2019-09-18 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:ContractBasedIntangibleAssetsMember 2019-09-18 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:CustomerRelatedIntangibleAssetsMember 2019-09-18 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:TrademarksAndTradeNamesMember 2019-09-18 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:CustomerRelatedIntangibleAssetsMember 2019-09-18 2019-09-18 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:TrademarksAndTradeNamesMember 2019-09-18 2019-09-18 0001123360 gpn:SICOMSystemsInc.Member us-gaap:CustomerRelatedIntangibleAssetsMember 2018-10-17 0001123360 gpn:SICOMSystemsInc.Member us-gaap:TechnologyBasedIntangibleAssetsMember 2018-10-17 2018-10-17 0001123360 gpn:SICOMSystemsInc.Member us-gaap:ContractBasedIntangibleAssetsMember 2018-10-17 2018-10-17 0001123360 gpn:SICOMSystemsInc.Member us-gaap:ContractBasedIntangibleAssetsMember 2018-10-17 0001123360 gpn:SICOMSystemsInc.Member us-gaap:CustomerRelatedIntangibleAssetsMember 2018-10-17 2018-10-17 0001123360 gpn:SICOMSystemsInc.Member us-gaap:TrademarksAndTradeNamesMember 2018-10-17 2018-10-17 0001123360 gpn:SICOMSystemsInc.Member us-gaap:TrademarksAndTradeNamesMember 2018-10-17 0001123360 gpn:SICOMSystemsInc.Member us-gaap:TechnologyBasedIntangibleAssetsMember 2018-10-17 0001123360 gpn:AdvancedMDInc.Member 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:NorthAmericaSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2019-01-01 2019-09-30 0001123360 gpn:NorthAmericaSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:NorthAmericaSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:AsiaPacificSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:EuropeSegmentMember 2019-01-01 2019-09-30 0001123360 gpn:AsiaPacificSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:EuropeSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2019-01-01 2019-09-30 0001123360 gpn:EuropeSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:AsiaPacificSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:EuropeSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:NorthAmericaSegmentMember 2018-01-01 2018-09-30 0001123360 gpn:AsiaPacificSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2018-01-01 2018-09-30 0001123360 gpn:NorthAmericaSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:EuropeSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2018-01-01 2018-09-30 0001123360 gpn:EuropeSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:AsiaPacificSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:NorthAmericaSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:AsiaPacificSegmentMember 2018-01-01 2018-09-30 0001123360 gpn:ObtainContractMember 2019-09-30 0001123360 gpn:FulfillContractMember 2018-12-31 0001123360 gpn:FulfillContractMember 2019-09-30 0001123360 gpn:ObtainContractMember 2018-12-31 0001123360 2021-01-01 2019-09-30 0001123360 2022-01-01 2019-09-30 0001123360 2019-10-01 2019-09-30 0001123360 2020-01-01 2019-09-30 0001123360 2023-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2019-07-01 2019-09-30 0001123360 gpn:AsiaPacificSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:NorthAmericaSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:AsiaPacificSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2019-07-01 2019-09-30 0001123360 gpn:NorthAmericaSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:EuropeSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember 2019-07-01 2019-09-30 0001123360 gpn:EuropeSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:NorthAmericaSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:EuropeSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:AsiaPacificSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:AsiaPacificSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2018-07-01 2018-09-30 0001123360 gpn:EuropeSegmentMember 2018-07-01 2018-09-30 0001123360 gpn:NorthAmericaSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:EuropeSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2018-07-01 2018-09-30 0001123360 gpn:AsiaPacificSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:NorthAmericaSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:AsiaPacificSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:RelationshipLedMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:NorthAmericaSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelThroughIntermediaryMember gpn:EuropeSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:AsiaPacificSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:EuropeSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember us-gaap:TechnologyServiceMember us-gaap:SalesChannelDirectlyToConsumerMember gpn:NorthAmericaSegmentMember 2018-07-01 2018-09-30 0001123360 gpn:NorthAmericaSegmentMember 2019-09-30 0001123360 gpn:EuropeSegmentMember 2018-12-31 0001123360 gpn:AsiaPacificSegmentMember 2019-09-30 0001123360 gpn:NorthAmericaSegmentMember 2018-12-31 0001123360 gpn:AsiaPacificSegmentMember 2018-12-31 0001123360 gpn:TotalSystemServicesInc.Member 2018-12-31 0001123360 gpn:EuropeSegmentMember 2019-09-30 0001123360 us-gaap:ContractBasedIntangibleAssetsMember 2019-09-30 0001123360 us-gaap:CustomerRelatedIntangibleAssetsMember 2019-09-30 0001123360 us-gaap:TrademarksAndTradeNamesMember 2019-09-30 0001123360 us-gaap:TechnologyBasedIntangibleAssetsMember 2019-09-30 0001123360 us-gaap:ContractBasedIntangibleAssetsMember 2018-12-31 0001123360 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-12-31 0001123360 us-gaap:TrademarksAndTradeNamesMember 2018-12-31 0001123360 us-gaap:CustomerRelatedIntangibleAssetsMember 2018-12-31 0001123360 us-gaap:CostOfSalesMember 2019-07-01 2019-09-30 0001123360 2019-09-18 0001123360 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-01-01 2019-09-30 0001123360 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-07-01 2019-09-30 0001123360 us-gaap:CostOfSalesMember 2019-01-01 2019-09-30 0001123360 us-gaap:ComputerEquipmentMember 2019-01-01 0001123360 us-gaap:PropertyPlantAndEquipmentOtherTypesMember 2019-09-30 0001123360 us-gaap:PropertyPlantAndEquipmentOtherTypesMember 2019-01-01 0001123360 2019-01-01 0001123360 us-gaap:ComputerEquipmentMember 2019-09-30 0001123360 us-gaap:LandAndBuildingMember 2019-09-30 0001123360 us-gaap:LandAndBuildingMember 2019-01-01 0001123360 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateSwapMember 2018-12-31 0001123360 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateSwapMember 2018-12-31 0001123360 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateSwapMember 2019-09-30 0001123360 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateSwapMember 2019-09-30 0001123360 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateSwapMember 2018-12-31 0001123360 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateSwapMember 2019-09-30 0001123360 gpn:BridgeFacilityMember us-gaap:UnsecuredDebtMember 2019-09-30 0001123360 gpn:BridgeFacilityMember us-gaap:UnsecuredDebtMember 2019-07-09 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:SeniorNotesMember 2019-09-18 0001123360 gpn:TermLoanFacilityMember gpn:FiveYearSeniorUnsecuredCreditFacilityMember us-gaap:UnsecuredDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-09-30 0001123360 gpn:A4.800SeniorNotesdueApril012026Member us-gaap:SeniorNotesMember 2019-09-30 0001123360 us-gaap:RevolvingCreditFacilityMember gpn:FiveYearSeniorUnsecuredCreditFacilityMember us-gaap:UnsecuredDebtMember 2019-09-30 0001123360 us-gaap:LineOfCreditMember 2019-09-30 0001123360 gpn:TermLoanA2Member us-gaap:SecuredDebtMember 2019-09-30 0001123360 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember gpn:FourthAmendmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:InterestRateSwapMember 2019-09-30 0001123360 gpn:A3.800SeniorNotesdueApril012021Member us-gaap:SeniorNotesMember 2019-09-18 0001123360 gpn:TermLoanB2Member us-gaap:SecuredDebtMember 2019-09-30 0001123360 gpn:TotalSystemServicesInc.Member gpn:SeniorUnsecuredNotesMember us-gaap:SeniorNotesMember 2019-09-18 0001123360 us-gaap:SeniorNotesMember 2019-09-30 0001123360 gpn:A4.000SeniorNotesdueJune012023Member us-gaap:SeniorNotesMember 2019-09-30 0001123360 us-gaap:AccountsPayableAndAccruedLiabilitiesMember gpn:ForwardStartingInterestRateSwapMember 2019-06-30 0001123360 srt:ScenarioForecastMember gpn:TermLoanFacilityMember gpn:FiveYearSeniorUnsecuredCreditFacilityMember us-gaap:UnsecuredDebtMember 2019-12-31 0001123360 gpn:A2.650SeniorNotesdueFebruary152025Member us-gaap:SeniorNotesMember 2019-08-14 0001123360 us-gaap:LineOfCreditMember 2019-07-01 2019-09-30 0001123360 us-gaap:StandbyLettersOfCreditMember us-gaap:LineOfCreditMember 2019-09-30 0001123360 gpn:UnsecuredRevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2019-09-30 0001123360 gpn:A3.800SeniorNotesdueApril012021Member us-gaap:SeniorNotesMember 2019-09-30 0001123360 gpn:BridgeFacilityMember us-gaap:UnsecuredDebtMember 2019-07-01 2019-09-30 0001123360 gpn:TermLoanB4Member us-gaap:SecuredDebtMember 2019-09-30 0001123360 us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2019-09-30 0001123360 gpn:SeniorUnsecuredNotesMember us-gaap:SeniorNotesMember 2019-08-14 0001123360 gpn:A4.150SeniorNotesdueAugust152049Member us-gaap:SeniorNotesMember 2019-09-30 0001123360 us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember 2019-09-30 0001123360 gpn:SeniorNotesandSecuredDebtMember 2019-09-30 0001123360 gpn:TermLoanFacilityMember gpn:FiveYearSeniorUnsecuredCreditFacilityMember us-gaap:UnsecuredDebtMember us-gaap:FederalFundsEffectiveSwapRateMember 2019-01-01 2019-09-30 0001123360 gpn:A4.800SeniorNotesdueApril012026Member us-gaap:SeniorNotesMember 2019-09-18 0001123360 gpn:A4.000SeniorNotesdueJune012023Member us-gaap:SeniorNotesMember 2019-09-18 0001123360 us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2019-09-30 0001123360 gpn:A3.200SeniorNotesdueAugust152029Member us-gaap:SeniorNotesMember 2019-09-30 0001123360 gpn:A3.750SeniorNotesdueJune012023Member us-gaap:SeniorNotesMember 2019-09-18 0001123360 srt:ScenarioForecastMember gpn:TermLoanAMember us-gaap:SecuredDebtMember 2017-05-02 2021-06-30 0001123360 us-gaap:LineOfCreditMember 2018-12-31 0001123360 us-gaap:LineOfCreditMember 2018-01-01 2018-12-31 0001123360 gpn:A2.650SeniorNotesdueFebruary152025Member us-gaap:SeniorNotesMember 2019-09-30 0001123360 gpn:TermLoanAMember us-gaap:SecuredDebtMember 2019-09-30 0001123360 gpn:A3.750SeniorNotesdueJune012023Member us-gaap:SeniorNotesMember 2019-09-30 0001123360 gpn:BridgeFacilityMember us-gaap:UnsecuredDebtMember 2019-05-27 0001123360 gpn:A4.450SeniorNotesdueJune012028Member us-gaap:SeniorNotesMember 2019-09-18 0001123360 us-gaap:SecuredDebtMember 2018-12-31 0001123360 gpn:A4.450SeniorNotesdueJune012028Member us-gaap:SeniorNotesMember 2019-09-30 0001123360 gpn:BridgeFacilityMember us-gaap:UnsecuredDebtMember 2019-01-01 2019-09-30 0001123360 us-gaap:LineOfCreditMember 2018-12-31 0001123360 gpn:A4.150SeniorNotesdueAugust152049Member us-gaap:SeniorNotesMember 2019-08-14 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:SeniorNotesMember 2019-07-01 2019-09-30 0001123360 srt:ScenarioForecastMember us-gaap:RevolvingCreditFacilityMember gpn:FiveYearSeniorUnsecuredCreditFacilityMember us-gaap:UnsecuredDebtMember 2019-12-31 0001123360 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember gpn:FourthAmendmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:LineOfCreditMember 2019-01-01 2019-09-30 0001123360 gpn:BridgeFacilityMember us-gaap:UnsecuredDebtMember 2019-05-27 2019-05-27 0001123360 gpn:TermLoanFacilityMember us-gaap:UnsecuredDebtMember 2019-09-30 0001123360 gpn:A3.200SeniorNotesdueAugust152029Member us-gaap:SeniorNotesMember 2019-08-14 0001123360 gpn:ForwardStartingInterestRateSwapMember 2019-01-01 2019-09-30 0001123360 gpn:SecuredRevolvingCreditFacilityMember 2018-12-31 0001123360 gpn:A4.450SeniorNotesdueJune012028Member us-gaap:SeniorNotesMember 2018-12-31 0001123360 gpn:SecuredTermLoansMember 2019-09-30 0001123360 gpn:A3.800SeniorNotesdueApril012021Member us-gaap:SeniorNotesMember 2018-12-31 0001123360 gpn:A3.750SeniorNotesdueJune012023Member us-gaap:SeniorNotesMember 2018-12-31 0001123360 gpn:UnsecuredTermLoanFacilityMember 2019-09-30 0001123360 gpn:A4.150SeniorNotesdueAugust152049Member us-gaap:SeniorNotesMember 2018-12-31 0001123360 gpn:A4.000SeniorNotesdueJune012023Member us-gaap:SeniorNotesMember 2018-12-31 0001123360 gpn:A2.650SeniorNotesdueFebruary152025Member us-gaap:SeniorNotesMember 2018-12-31 0001123360 gpn:OtherLongTermDebtMember 2018-12-31 0001123360 gpn:UnsecuredRevolvingCreditFacilityMember 2018-12-31 0001123360 gpn:SecuredRevolvingCreditFacilityMember 2019-09-30 0001123360 gpn:A3.200SeniorNotesdueAugust152029Member us-gaap:SeniorNotesMember 2018-12-31 0001123360 gpn:A4.800SeniorNotesdueApril012026Member us-gaap:SeniorNotesMember 2018-12-31 0001123360 gpn:SecuredTermLoansMember 2018-12-31 0001123360 gpn:OtherLongTermDebtMember 2019-09-30 0001123360 gpn:UnsecuredRevolvingCreditFacilityMember 2019-09-30 0001123360 gpn:UnsecuredTermLoanFacilityMember 2018-12-31 0001123360 us-gaap:RevolvingCreditFacilityMember gpn:FourthAmendmentMember 2019-09-30 0001123360 gpn:TotalSystemServicesInc.Member us-gaap:SeniorNotesMember 2019-01-01 2019-09-30 0001123360 gpn:OtherThanAcceleratedShareRepurchaseProgramMember 2019-09-30 0001123360 us-gaap:SubsequentEventMember 2019-10-24 2019-10-24 0001123360 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-09-30 0001123360 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-30 0001123360 gpn:ShareBasedAwardsMember 2019-01-01 2019-09-30 0001123360 gpn:ShareBasedAwardsMember 2018-12-31 0001123360 gpn:ShareBasedAwardsMember 2019-09-30 0001123360 us-gaap:EmployeeStockOptionMember 2019-09-30 0001123360 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0001123360 gpn:ShareBasedAwardsMember 2018-07-01 2018-09-30 0001123360 gpn:ShareBasedAwardsMember 2018-01-01 2018-09-30 0001123360 gpn:ShareBasedAwardsMember 2019-07-01 2019-09-30 0001123360 us-gaap:EmployeeStockOptionMember 2018-09-30 0001123360 us-gaap:EmployeeStockOptionMember 2018-07-01 2018-09-30 0001123360 us-gaap:EmployeeStockOptionMember 2018-12-31 0001123360 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-12-31 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-09-30 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2019-09-30 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-06-30 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-06-30 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-07-01 2018-09-30 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-07-01 2019-09-30 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2018-09-30 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2018-06-30 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-09-30 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-09-30 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-06-30 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-09-30 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-06-30 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-30 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-09-30 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-12-31 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-01-01 2018-09-30 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-01-01 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 0001123360 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0001123360 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0001123360 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:CorporateNonSegmentMember 2019-07-01 2019-09-30 0001123360 us-gaap:CorporateNonSegmentMember 2018-01-01 2018-09-30 0001123360 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-09-30 0001123360 us-gaap:CorporateNonSegmentMember 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:TotalSystemServicesInc.Member 2019-01-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:TotalSystemServicesInc.Member 2019-07-01 2019-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:TotalSystemServicesInc.Member 2018-07-01 2018-09-30 0001123360 us-gaap:OperatingSegmentsMember gpn:TotalSystemServicesInc.Member 2018-01-01 2018-09-30 0001123360 gpn:FrontlineCaseMember us-gaap:PerformanceGuaranteeMember 2019-09-23 2019-09-23 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure gpn:segment
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             

Commission file number: 001-16111
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13172376&doc=17
GLOBAL PAYMENTS INC.
(Exact name of registrant as specified in charter)
Georgia
 
58-2567903
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
3550 Lenox Road
,
Atlanta
,
Georgia
 
30326
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (770) 829-8000
Securities registered pursuant to Section 12(b) of the Act
Title of each class
Ticker symbol
Name of exchange on which registered
Common stock, no par value
GPN
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
Accelerated filer
Non-accelerated filer
 
Smaller reporting company
 
 
 
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
Yes
 
No
 
The number of shares of the issuer’s common stock, no par value, outstanding as of October 27, 2019 was 300,548,018.


Table of Contents

GLOBAL PAYMENTS INC.
FORM 10-Q
For the quarterly period ended September 30, 2019

TABLE OF CONTENTS
 
 
 
Page
PART I - FINANCIAL INFORMATION
ITEM 1.
 
 
 
 
 
 
 
 
 
 
 
ITEM 2.
 
ITEM 3.
 
ITEM 4.
 
PART II - OTHER INFORMATION
ITEM 1.
 
ITEM 1A.
 
ITEM 2.
 
ITEM 6.
 
 
 



2

Table of Contents

PART 1 - FINANCIAL INFORMATION

ITEM 1—FINANCIAL STATEMENTS

GLOBAL PAYMENTS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)

 
Three Months Ended
 
September 30, 2019
 
September 30, 2018
 
 
 
 
Revenues
$
1,105,941

 
$
857,670

Operating expenses:
 
 
 
Cost of service
427,720

 
265,013

Selling, general and administrative
504,184

 
369,495

 
931,904

 
634,508

Operating income
174,037

 
223,162

 
 
 
 
Interest and other income
11,232

 
3,134

Interest and other expense
(96,161
)
 
(46,356
)
 
(84,929
)
 
(43,222
)
Income before income taxes
89,108

 
179,940

Income tax benefit
16,623

 
6,089

Net income
105,731

 
186,029

Net income attributable to noncontrolling interests, net of income tax
(10,687
)
 
(9,659
)
Net income attributable to Global Payments
$
95,044

 
$
176,370

 
 
 
 
Earnings per share attributable to Global Payments:
 
 
 
Basic earnings per share
$
0.54

 
$
1.12

Diluted earnings per share
$
0.54

 
$
1.11

See Notes to Unaudited Consolidated Financial Statements.

3

Table of Contents

GLOBAL PAYMENTS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)

 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
 
 
 
 
Revenues
$
2,924,131

 
$
2,485,811

Operating expenses:
 
 
 
Cost of service
1,035,225

 
781,943

Selling, general and administrative
1,293,651

 
1,133,799

 
2,328,876

 
1,915,742

Operating income
595,255

 
570,069

 
 
 
 
Interest and other income
20,342

 
17,397

Interest and other expense
(220,858
)
 
(139,681
)
 
(200,516
)
 
(122,284
)
Income before income taxes
394,739

 
447,785

Income tax expense
(39,765
)
 
(46,441
)
Net income
354,974

 
401,344

Net income attributable to noncontrolling interests, net of income tax
(27,132
)
 
(24,506
)
Net income attributable to Global Payments
$
327,842

 
$
376,838

 
 
 
 
Earnings per share attributable to Global Payments:
 
 
 
Basic earnings per share
$
2.00

 
$
2.37

Diluted earnings per share
$
2.00

 
$
2.36

See Notes to Unaudited Consolidated Financial Statements.

4

Table of Contents

GLOBAL PAYMENTS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)

 
Three Months Ended
 
September 30, 2019
 
September 30, 2018
 
 
 
 
Net income
$
105,731

 
$
186,029

Other comprehensive income (loss):
 
 
 
Foreign currency translation adjustments
(67,279
)
 
(15,395
)
Income tax benefit related to foreign currency translation adjustments
144

 
140

Net unrealized (losses) gains on hedging activities
(40,265
)
 
1,845

Reclassification of net unrealized losses (gains) on hedging activities to interest expense
1,193

 
(1,663
)
Income tax benefit (expense) related to hedging activities
9,289

 
(110
)
Other, net of tax
37

 
(58
)
Other comprehensive loss
(96,881
)
 
(15,241
)
 
 
 
 
Comprehensive income
8,850

 
170,788

Comprehensive income attributable to noncontrolling interests
(1,967
)
 
(21,333
)
Comprehensive income attributable to Global Payments
$
6,883

 
$
149,455




 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
 
 
 
 
Net income
$
354,974

 
$
401,344

Other comprehensive income (loss):
 
 
 
Foreign currency translation adjustments
(54,377
)
 
(80,620
)
Income tax benefit (expense) related to foreign currency translation adjustments
1,695

 
(224
)
Net unrealized (losses) gains on hedging activities
(96,997
)
 
12,353

Reclassification of net unrealized gains on hedging activities to interest expense
(1,530
)
 
(2,830
)
Income tax benefit (expense) related to hedging activities
23,800

 
(2,420
)
Other, net of tax
165

 
(59
)
Other comprehensive loss
(127,244
)
 
(73,800
)
 
 
 
 
Comprehensive income
227,730

 
327,544

Comprehensive income attributable to noncontrolling interests
(17,780
)
 
(36,264
)
Comprehensive income attributable to Global Payments
$
209,950

 
$
291,280

See Notes to Unaudited Consolidated Financial Statements.



5

Table of Contents

GLOBAL PAYMENTS INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 
September 30, 2019
 
December 31, 2018
 
(Unaudited)
 
 
ASSETS
 
  
 

Current assets:
 
  
 

Cash and cash equivalents
$
2,127,616

 
$
1,210,878

Accounts receivable, net
868,133

 
348,400

Settlement processing assets
1,556,307

 
1,600,222

Prepaid expenses and other current assets
440,512

 
216,708

Total current assets
4,992,568

  
3,376,208

Goodwill
23,754,450

  
6,341,355

Other intangible assets, net
13,184,391

  
2,488,618

Property and equipment, net
1,423,271

  
653,542

Deferred income taxes
12,477

 
8,128

Other noncurrent assets
1,844,890

  
362,923

Total assets
$
45,212,047

  
$
13,230,774

LIABILITIES AND EQUITY
 
  
 
Current liabilities:
 
  
 
Settlement lines of credit
$
547,624

 
$
700,486

Current portion of long-term debt
33,373

 
115,075

Accounts payable and accrued liabilities
1,849,424

  
1,176,703

Settlement processing obligations
1,852,731

 
1,276,356

Total current liabilities
4,283,152

  
3,268,620

Long-term debt
8,987,704

 
5,015,168

Deferred income taxes
3,352,727

  
585,025

Other noncurrent liabilities
632,746

  
175,618

Total liabilities
17,256,329

  
9,044,431

Commitments and contingencies


  


Equity:
 
  
 
Preferred stock, no par value; 5,000,000 shares authorized and none issued

  

Common stock, no par value; 400,000,000 shares authorized at September 30, 2019 and 200,000,000 shares authorized at December 31, 2018; 300,544,949 issued and outstanding at September 30, 2019 and 157,961,982 issued and outstanding at December 31, 2018

  

Paid-in capital
25,904,804

  
2,235,167

Retained earnings
2,297,897

  
2,066,415

Accumulated other comprehensive loss
(428,067
)
  
(310,175
)
Total Global Payments shareholders’ equity
27,774,634

  
3,991,407

Noncontrolling interests
181,084

 
194,936

Total equity
27,955,718

 
4,186,343

Total liabilities and equity
$
45,212,047

  
$
13,230,774

See Notes to Unaudited Consolidated Financial Statements.

6

Table of Contents

GLOBAL PAYMENTS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
Cash flows from operating activities:
 
 
 
Net income
$
354,974

 
$
401,344

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization of property and equipment
132,043

 
105,734

Amortization of acquired intangibles
345,455

 
263,714

Amortization of capitalized contract costs
47,778

 
37,281

Share-based compensation expense
55,791

 
44,937

Provision for operating losses and bad debts
34,877

 
32,309

Deferred income taxes
(42,990
)
 
(4,973
)
Other, net
6,666

 
(17,185
)
Changes in operating assets and liabilities, net of the effects of business combinations:
 
 
 
Accounts receivable
(80,709
)
 
(27,696
)
Settlement processing assets and obligations, net
623,985

 
(58,693
)
Prepaid expenses and other assets
(148,421
)
 
(117,824
)
Accounts payable and other liabilities
19,940

 
2,058

Net cash provided by operating activities
1,349,389

 
661,006

Cash flows from investing activities:
 
 
 
Acquisitions, net of cash acquired
(334,383
)
 
(769,082
)
Capital expenditures
(201,017
)
 
(156,060
)
Other, net
29,112

 
(2,383
)
Net cash used in investing activities
(506,288
)
 
(927,525
)
Cash flows from financing activities:
 
 
 
Net (repayments of) borrowings from settlement lines of credit
(144,473
)
 
49,381

Proceeds from long-term debt
6,704,838

 
1,606,214

Repayments of long-term debt
(6,097,229
)
 
(1,468,505
)
Payments of debt issuance costs
(32,637
)
 
(12,544
)
Repurchases of common stock
(233,995
)
 
(180,897
)
Proceeds from stock issued under share-based compensation plans
22,008

 
12,571

Common stock repurchased - share-based compensation plans
(49,037
)
 
(44,824
)
Distributions to noncontrolling interests
(31,632
)
 
(5,686
)
Preacquisition dividends paid to former TSYS shareholders
(23,240
)
 

Dividends paid
(4,727
)
 
(4,750
)
Net cash provided by (used in) financing activities
109,876

 
(49,040
)
Effect of exchange rate changes on cash
(36,239
)
 
(29,692
)
Increase (decrease) in cash and cash equivalents
916,738

 
(345,251
)
Cash and cash equivalents, beginning of the period
1,210,878

 
1,335,855

Cash and cash equivalents, end of the period
$
2,127,616

 
$
990,604

See Notes to Unaudited Consolidated Financial Statements.

7

Table of Contents



GLOBAL PAYMENTS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
 (in thousands)

 
 
Number of Shares 
 
Paid-in Capital 
 
Retained Earnings 
 
Accumulated Other Comprehensive Loss
 
Total Global Payments Shareholders’ Equity
 
Noncontrolling Interests
 
Total Equity
Balance at June 30, 2019
156,675

 
$
2,126,065

 
$
2,204,445

 
$
(339,906
)
 
$
3,990,604

 
$
184,512

 
$
4,175,116

Net income
 
 
 
 
95,044

 
 
 
95,044

 
10,687

 
105,731

Other comprehensive loss
 
 
 
 
 
 
(88,161
)
 
(88,161
)
 
(8,720
)
 
(96,881
)
Stock issued under share-based compensation plans
141

 
9,057

 
 
 
 
 
9,057

 
 
 
9,057

Common stock repurchased - share-based compensation plans
(180
)
 
(29,584
)
 
 
 
 
 
(29,584
)
 
 
 
(29,584
)
Share-based compensation expense
 
 
27,877

 
 
 
 
 
27,877

 
 
 
27,877

Issuance of common stock in connection with a business combination
143,909

 
23,771,389

 
 
 
 
 
23,771,389

 
 
 
23,771,389

Distributions to noncontrolling interest
 
 
 
 
 
 
 
 

 
(5,395
)
 
(5,395
)
Dividends paid ($0.01 per share)
 
 
 
 
(1,592
)
 
 
 
(1,592
)
 
 
 
(1,592
)
Balance at September 30, 2019
300,545

 
$
25,904,804

 
$
2,297,897

 
$
(428,067
)
 
$
27,774,634

 
$
181,084

 
$
27,955,718


 
Number of Shares 
 
Paid-in Capital 
 
Retained Earnings 
 
Accumulated Other Comprehensive Loss
 
Total Global Payments Shareholders’ Equity 
 
Noncontrolling Interests
 
Total Equity
Balance at June 30, 2018
158,071

 
$
2,254,783

 
$
1,819,213

 
$
(243,629
)
 
$
3,830,367

 
$
185,634

 
$
4,016,001

Net income
 
 
 
 
176,369

 
 
 
176,369

 
9,659

 
186,028

Other comprehensive income (loss)
 
 
 
 
 
 
(26,916
)
 
(26,916
)
 
11,675

 
(15,241
)
Stock issued under share-based compensation plans
325

 
6,231

 
 
 
 
 
6,231

 
 
 
6,231

Common stock repurchased - share-based compensation plans
(210
)
 
(25,019
)
 
 
 
 
 
(25,019
)
 
 
 
(25,019
)
Share-based compensation expense
 
 
14,833

 
 
 
 
 
14,833

 
 
 
14,833

Distributions to noncontrolling interest













(5,686
)

(5,686
)
Dividends paid ($0.01 per share)
 
 
 
 
(1,579
)
 
 
 
(1,579
)
 
 
 
(1,579
)
Balance at September 30, 2018
158,186

 
$
2,250,828

 
$
1,994,003

 
$
(270,545
)
 
$
3,974,286

 
$
201,282

 
$
4,175,568

See Notes to Unaudited Consolidated Financial Statements.




8

Table of Contents

GLOBAL PAYMENTS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
 (in thousands)

 
 
Number of Shares 
 
Paid-in Capital 
 
Retained Earnings 
 
Accumulated Other Comprehensive Loss
 
Total Global Payments Shareholders’ Equity
 
Noncontrolling Interests
 
Total Equity
Balance at December 31, 2018
157,962

 
$
2,235,167

 
$
2,066,415

 
$
(310,175
)
 
$
3,991,407

 
$
194,936

 
$
4,186,343

Net income
 
 
 
 
327,842

 
 
 
327,842

 
27,132

 
354,974

Other comprehensive loss
 
 
 
 
 
 
(117,892
)
 
(117,892
)
 
(9,352
)
 
(127,244
)
Stock issued under share-based compensation plans
750

 
22,008

 
 
 
 
 
22,008

 
 
 
22,008

Common stock repurchased - share-based compensation plans
(268
)
 
(41,190
)
 


 
 
 
(41,190
)
 
 
 
(41,190
)
Share-based compensation expense
 
 
55,791

 
 
 
 
 
55,791

 
 
 
55,791

Issuance of common stock in connection with a business combination
143,909

 
23,771,389

 
 
 
 
 
23,771,389

 
 
 
23,771,389

Distributions to noncontrolling interest
 
 
 
 
 
 
 
 

 
(31,632
)
 
(31,632
)
Repurchase of common stock
(1,808
)
 
(138,361
)
 
(91,633
)
 
 
 
(229,994
)
 
 
 
(229,994
)
Dividends paid ($0.03 per share)
 
 
 
 
(4,727
)
 
 
 
(4,727
)
 
 
 
(4,727
)
Balance at September 30, 2019
300,545

 
$
25,904,804

 
$
2,297,897

 
$
(428,067
)
 
$
27,774,634

 
$
181,084

 
$
27,955,718


 
Number of Shares 
 
Paid-in Capital 
 
Retained Earnings 
 
Accumulated Other Comprehensive Loss
 
Total Global Payments Shareholders’ Equity 
 
Noncontrolling Interests
 
Total Equity
Balance at December 31, 2017
159,180

 
$
2,379,774

 
$
1,597,897

 
$
(183,144
)
 
$
3,794,527

 
$
170,704

 
$
3,965,231

Cumulative effect of adoption of new accounting standard
 
 
 
 
50,969

 
(1,843
)
 
49,126

 
 
 
49,126

Net income
 
 
 
 
376,838

 
 
 
376,838

 
24,506

 
401,344

Other comprehensive income (loss)
 
 
 
 
 
 
(85,558
)
 
(85,558
)
 
11,758

 
(73,800
)
Stock issued under share-based compensation plans
895

 
12,571

 
 
 


 
12,571

 
 
 
12,571

Common stock repurchased - share-based compensation plans
(277
)
 
(32,508
)
 
 
 
 
 
(32,508
)
 
 
 
(32,508
)
Share-based compensation expense
 
 
44,937

 
 
 
 
 
44,937

 
 
 
44,937

Distributions to noncontrolling interest
 
 
 
 
 
 
 
 

 
(5,686
)
 
(5,686
)
Repurchase of common stock
(1,612
)
 
(153,946
)
 
(26,951
)
 
 
 
(180,897
)
 
 
 
(180,897
)
Dividends paid ($0.03 per share)
 
 
 
 
(4,750
)
 
 
 
(4,750
)
 
 
 
(4,750
)
Balance at September 30, 2018
158,186

 
$
2,250,828

 
$
1,994,003

 
$
(270,545
)
 
$
3,974,286

 
$
201,282

 
$
4,175,568

See Notes to Unaudited Consolidated Financial Statements.


9

Table of Contents

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
NOTE 1BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Business, consolidation and presentation— 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 May 27, 2019, we entered into an Agreement and Plan of Merger (the "Merger Agreement") with Total System Services, Inc. ("TSYS") providing for the merger of TSYS with and into Global Payments, with Global Payments as the surviving entity (the "Merger"). We consummated the Merger on September 18, 2019. Prior to the Merger, TSYS was a leading global payments provider, offering seamless, secure and innovative solutions to issuers, merchants and consumers. Through our combination with TSYS, we are now a leading pure play payments technology company delivering innovative software and services to our customers globally. See "Note 2—Acquisitions" for more information about the Merger.

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, 2018 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 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, 2018.

Use of estimatesThe preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates.

Recently Adopted Accounting PronouncementsIn February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, "Leases." ASU 2016-02 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 optional 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 twelve 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.

Recently Issued Pronouncements Not Yet AdoptedIn 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 amends the definition of a hosting arrangement and requires a

10

Table of Contents

customer in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. The amendments in this update also provide additional presentation and disclosure requirements, including requirements to disclose the nature of an entity’s hosting arrangements that are service contracts, as well as quantitative information about capitalized implementation costs and related amortization expense. The guidance will become effective for us on January 1, 2020. We expect to apply the guidance prospectively to all implementation costs incurred after the date of adoption.

We are finalizing our comparison of the guidance in ASU 2018-15 to our current accounting and financial reporting practices for costs of implementation activities performed in cloud computing arrangements. We are also evaluating the need for changes to our internal controls. We have not yet completed our assessment or quantified the effect, if any, of ASU 2018-15 on our consolidated balance sheet or our statements of income and cash flows; however, our preliminary expectation is that the adoption of this standard will 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 expect to continue to do so pursuant to the clarifications provided in the new guidance. We expect to amortize deferred implementation costs to expense on a straight-line basis over the term of the applicable hosting arrangement.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The amendments in this update change how companies measure and recognize credit impairment for many financial instruments measured at amortized cost. The new model for current expected credit losses ("CECL") will require us to recognize an estimate of credit losses expected to occur over the remaining life of the financial instruments that are within the scope of the update, including accounts receivable and settlement processing assets, each of which are short-term in nature. Under current GAAP, credit losses on these financial instruments are not recognized until their occurrence is deemed to be probable. The guidance will become effective for us on January 1, 2020. In general, the new guidance will require modified retrospective application to all outstanding financial assets that are within the scope of the update, with a cumulative-effect adjustment, if any, recorded to retained earnings as of the date of adoption.

We are continuing to evaluate the effect of ASU 2016-13 on our consolidated financial statements, including comparing how we currently measure and recognize our allowance for doubtful accounts on accounts receivable and our reserve for operating losses and sales allowances to how we would make such measurements applying the new CECL model. We have not yet completed our assessment or quantified the effect, if any, of ASU 2016-13 on our consolidated balance sheet or our statements of income and cash flows; however, we believe the adoption of this new standard may require expanded qualitative disclosures about our financial assets and related allowance for credit losses, as well as implementation of new or modified internal controls.

As a result of the Merger, we have expanded our efforts to evaluate the effects of these new standards on the combined company, and we are incorporating TSYS into our evaluation.

NOTE 2ACQUISITIONS

The transactions described below were accounted for as business combinations, which generally requires that we record the assets acquired and liabilities assumed at fair value as of the acquisition date.

Total System Services, Inc.

Pursuant to the Merger Agreement, we acquired all of the outstanding common stock of TSYS at the closing on September 18, 2019. Upon consummation of the Merger, 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.


11

Table of Contents

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's 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's 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 provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed as of September 30, 2019, including a reconciliation to the total purchase consideration, were as follows (in thousands):
Cash and cash equivalents
 
$
446,027

Accounts receivable
 
443,783

Identified intangible assets
 
11,020,000

Property and equipment
 
695,560

Other assets
 
1,476,290

Accounts payable and accrued liabilities
 
(594,558
)
Debt
 
(3,295,284
)
Deferred income tax liabilities
 
(2,843,643
)
Other liabilities
 
(313,782
)
Total identifiable net assets
 
7,034,393

Goodwill
 
17,440,560

Total purchase consideration
 
$
24,474,953



As of September 30, 2019, we considered these amounts to be provisional because we were still in the process of gathering and reviewing information to support the valuations of the assets acquired and liabilities assumed. Goodwill arising from the acquisition of $17.4 billion, included in the TSYS segment as of September 30, 2019, was attributable to expected growth opportunities, an assembled workforce and potential synergies from combining the acquired business into our existing business. We expect that substantially all of the goodwill from this acquisition will not be deductible for income tax purposes. Due to the timing of the Merger, we are still in the process of assigning goodwill to our reporting units.


12

Table of Contents

The following table reflects the provisional estimated fair values of the identified intangible assets of TSYS and the respective aggregated weighted-average estimated amortization periods:
 
Estimated Fair Values
 
Weighted-Average Estimated Amortization Periods
 
 
 
 
 
(in thousands)
 
(years)
Customer-related intangible assets
$
6,330,000

 
18
Contract-based intangible assets
1,810,000

 
20
Acquired technologies
1,810,000

 
7
Trademarks and trade names
1,070,000

 
12
Total estimated identified intangible assets
$
11,020,000

 
14


From the acquisition date through September 30, 2019, TSYS contributed $147.5 million to our consolidated revenues and had an operating loss of approximately $11.1 million. Transaction costs directly related to the Merger were $53.5 million and $65.7 million for the three and nine months ended September 30, 2019, respectively.

The following unaudited pro forma information shows the results of our operations for the three and nine months ended September 30, 2019 and 2018 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 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's 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.

In addition, the pro forma net income attributable to Global Payments includes recognition of transaction costs related to the Merger in earnings as of the beginning of the earliest period presented. Accordingly, pro forma net income attributable to Global Payments for the nine months ended September 30, 2018 includes approximately $150 million of transaction costs.
 
Three Months Ended
September 30, 2019
 
Three Months Ended
September 30, 2018
 
Actual
 
Pro Forma
 
Actual
 
Pro Forma
 
 
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
Total revenues
$
1,105,941

 
$
1,993,089

 
$
857,670

 
$
1,864,534

Net income attributable to Global Payments
$
95,044

 
$
219,010

 
$
176,370

 
$
240,478

 
Nine Months Ended
September 30, 2019
 
Nine Months Ended
September 30, 2018
 
Actual
 
Pro Forma
 
Actual
 
Pro Forma
 
 
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
Total revenues
$
2,924,131

 
$
5,866,522

 
$
2,485,811

 
$
5,469,240

Net income attributable to Global Payments
$
327,842

 
$
614,317

 
$
376,838

 
$
407,899




13

Table of Contents

SICOM Systems, Inc.

On October 17, 2018, we acquired SICOM Systems, Inc. ("SICOM") for total purchase consideration of $410.2 million, which we funded with cash on hand and incremental debt. SICOM is a provider of end-to-end enterprise, cloud-based software solutions and other technologies to quick service restaurants and food service management companies. 

The estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed as of September 30, 2019, including a reconciliation to the total purchase consideration, were as follows (in thousands):
Cash and cash equivalents
 
$
7,540

Property and equipment
 
5,838

Identified intangible assets
 
188,294

Other assets
 
22,275

Deferred income liabilities
 
(47,610
)
Other liabilities
 
(31,350
)
Total identifiable net assets
 
144,987

Goodwill
 
265,214

Total purchase consideration
 
$
410,201



During the nine months ended September 30, 2019, we made an adjustment of $0.4 million to reflect an increase in the total purchase consideration, which resulted in a corresponding increase in goodwill. Goodwill arising from the acquisition of $265.2 million, included in the North America segment, was attributable to expected growth opportunities, an assembled workforce and potential synergies from combining the acquired business into our existing business. We expect that approximately $40 million of the goodwill from this acquisition will be deductible for income tax purposes.

The following table reflects the estimated fair values of the identified intangible assets of SICOM and the respective aggregated weighted-average estimated amortization periods:
 
Estimated Fair Values
 
Weighted-Average Estimated Amortization Periods
 
 
 
 
 
(in thousands)
 
(years)
Customer-related intangible assets
$
104,900

 
14
Acquired technologies
65,312

 
6
Trademarks and trade names
11,202

 
3
Contract-based intangible assets
6,880

 
5
Total estimated identified intangible assets
$
188,294

 
10


AdvancedMD, Inc.

On September 4, 2018, we acquired AdvancedMD, Inc. ("AdvancedMD") for total purchase consideration of $706.9 million, which we funded with cash on hand and incremental debt. AdvancedMD is a provider of cloud-based enterprise software solutions to small-to-medium sized ambulatory care physician practices.


14

Table of Contents

The estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed as of September 30, 2019, including a reconciliation to the total purchase consideration, were as follows (in thousands):
Cash and cash equivalents
 
$
7,657

Property and equipment
 
5,672

Identified intangible assets
 
419,500

Other assets
 
11,785

Deferred income tax liabilities
 
(94,044
)
Other liabilities
 
(15,647
)
Total identifiable net assets
 
334,923

Goodwill
 
371,962

Total purchase consideration
 
$
706,885



During the nine months ended September 30, 2019, we made measurement-period adjustments of $4.7 million primarily related to a reduction in deferred income tax liabilities, which resulted in a corresponding reduction in goodwill. Goodwill arising from the acquisition of $372.0 million, included in the North America segment, was attributable to expected growth opportunities, an assembled workforce and potential synergies from combining the acquired business into our existing business. We expect that substantially all of the goodwill from this acquisition will not be deductible for income tax purposes.

The following table reflects the estimated fair values of the identified intangible assets of AdvancedMD and the respective aggregated weighted-average estimated amortization periods:
 
Estimated Fair Values
 
Weighted-Average Estimated Amortization Periods
 
 
 
 
 
(in thousands)
 
(years)
Customer-related intangible assets
$
303,100

 
11
Acquired technologies
83,700

 
5
Trademarks and trade names
32,700

 
15
Total estimated identified intangible assets
$
419,500

 
10


Valuation of Identified Intangible Assets

For the acquisitions discussed above, the estimated fair values of customer-related and contract-based intangible assets were generally determined using the income approach, which was based on projected cash flows discounted to their present value using discount rates that consider the timing and risk of the forecasted cash flows. The discount rates used represented the average estimated value of a market participant’s cost of capital and debt, derived using customary market metrics. Acquired technologies were valued using the replacement cost method, which required us to estimate the costs to construct an asset of equivalent utility at prices available at the time of the valuation a