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<br /> <br /> 2014<br /> ANNUAL<br /> REPORT<br /> <br /> <br /> <br /> <br /> SERVICE. DRIVEN. COMMERCE<br /> SERVICE. DRIVEN. COMMERCE<br /> COMMERCE. AXÉ. SERVICE SERVICIO. IMPULSO. COMERCIO<br /> СЕРВИС. ОРИЕНТИРОВАННЫЙ. БИЗНЕС. SLUŽBY ŘÍZENÉ OBCHODEM<br /> SERVIÇO. MOVIDO. COMÉRCIOTo Our Valued Shareholders:<br /> I have had the privilege of leading your company for the past 14 years and take tremendous pride in our company's journey to a Fortune 1000<br /> corporation with market leading positions worldwide. I am deeply grateful for the support and dedication of my colleagues and our customers who<br /> made this growth possible.<br /> As I begin my retirement, I leave you in the capable hands of your CEO Jeff Sloan and Chairman Bill Jacobs. Jeff's background, including his time as<br /> President of our company, makes him the ideal choice to lead in this exciting new chapter. Jeff's intellect, leadership skills and<a title="GPN-20140926-AR-DS page 1" href="http://viewer.zmags.com/publication/a170d62b?page=1"> 2014 ANNUAL REPORT SERVICE</a> <a title="GPN-20140926-AR-DS page 2" href="http://viewer.zmags.com/publication/a170d62b?page=2">To Our Valued Shareholders: I have had the priv</a> <a title="GPN-20140926-AR-DS page 3" href="http://viewer.zmags.com/publication/a170d62b?page=3"> UNITED STATES SEC</a> <a title="GPN-20140926-AR-DS page 4" href="http://viewer.zmags.com/publication/a170d62b?page=4"> GLOBAL PAYMENTS INC. 2014 FORM 10-K ANN</a> <a title="GPN-20140926-AR-DS page 5" href="http://viewer.zmags.com/publication/a170d62b?page=5"> CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATE</a> <a title="GPN-20140926-AR-DS page 6" href="http://viewer.zmags.com/publication/a170d62b?page=6">PART I ITEM 1—BUSINESS Recent Developments </a> <a title="GPN-20140926-AR-DS page 7" href="http://viewer.zmags.com/publication/a170d62b?page=7"> region and in Brazil. We provide payment and digi</a> <a title="GPN-20140926-AR-DS page 8" href="http://viewer.zmags.com/publication/a170d62b?page=8"> and identification numbers to clear credit card t</a> <a title="GPN-20140926-AR-DS page 9" href="http://viewer.zmags.com/publication/a170d62b?page=9"> As an illustration, shown below, on a $100</a> <a title="GPN-20140926-AR-DS page 10" href="http://viewer.zmags.com/publication/a170d62b?page=10"> Integrated Payment Solutions. Our integra</a> <a title="GPN-20140926-AR-DS page 11" href="http://viewer.zmags.com/publication/a170d62b?page=11"> Total revenues from our segments, by region, are </a> <a title="GPN-20140926-AR-DS page 12" href="http://viewer.zmags.com/publication/a170d62b?page=12"> We believe that electronic and digital-base</a> <a title="GPN-20140926-AR-DS page 13" href="http://viewer.zmags.com/publication/a170d62b?page=13"> DSS compliant service providers in the third quar</a> <a title="GPN-20140926-AR-DS page 14" href="http://viewer.zmags.com/publication/a170d62b?page=14"> Payment Network Rules We are subject to th</a> <a title="GPN-20140926-AR-DS page 15" href="http://viewer.zmags.com/publication/a170d62b?page=15"> Debt Collection Laws The check and gaming p</a> <a title="GPN-20140926-AR-DS page 16" href="http://viewer.zmags.com/publication/a170d62b?page=16">ITEM 1A—RISK FACTORS An investment in our commo</a> <a title="GPN-20140926-AR-DS page 17" href="http://viewer.zmags.com/publication/a170d62b?page=17"> unbudgeted or uninsured liability, disrupt our op</a> <a title="GPN-20140926-AR-DS page 18" href="http://viewer.zmags.com/publication/a170d62b?page=18"> In order to remain competitive and to continue to</a> <a title="GPN-20140926-AR-DS page 19" href="http://viewer.zmags.com/publication/a170d62b?page=19"> We rely on various financial institutions t</a> <a title="GPN-20140926-AR-DS page 20" href="http://viewer.zmags.com/publication/a170d62b?page=20"> We may experience software defects, undetect</a> <a title="GPN-20140926-AR-DS page 21" href="http://viewer.zmags.com/publication/a170d62b?page=21"> future growth in the use of credit and debit card</a> <a title="GPN-20140926-AR-DS page 22" href="http://viewer.zmags.com/publication/a170d62b?page=22"> In addition, a recessionary economic environ</a> <a title="GPN-20140926-AR-DS page 23" href="http://viewer.zmags.com/publication/a170d62b?page=23"> In addition, since October 2011, (i) a ca</a> <a title="GPN-20140926-AR-DS page 24" href="http://viewer.zmags.com/publication/a170d62b?page=24"> In addition, in certain of the jurisdiction</a> <a title="GPN-20140926-AR-DS page 25" href="http://viewer.zmags.com/publication/a170d62b?page=25"> If the integration and conversion process d</a> <a title="GPN-20140926-AR-DS page 26" href="http://viewer.zmags.com/publication/a170d62b?page=26"> 2008, there have been multiple bank failures and </a> <a title="GPN-20140926-AR-DS page 27" href="http://viewer.zmags.com/publication/a170d62b?page=27"> The Company's debt agreements contain restriction</a> <a title="GPN-20140926-AR-DS page 28" href="http://viewer.zmags.com/publication/a170d62b?page=28"> effective or we are not always successful in capt</a> <a title="GPN-20140926-AR-DS page 29" href="http://viewer.zmags.com/publication/a170d62b?page=29">ITEM 2—PROPERTIES The following summar</a> <a title="GPN-20140926-AR-DS page 30" href="http://viewer.zmags.com/publication/a170d62b?page=30">Part II ITEM 5—MARKET FOR REGISTRANT'S CO</a> <a title="GPN-20140926-AR-DS page 31" href="http://viewer.zmags.com/publication/a170d62b?page=31"> Stock Performance Graph The following gra</a> <a title="GPN-20140926-AR-DS page 32" href="http://viewer.zmags.com/publication/a170d62b?page=32"> Issuer Purchases of Equity Securities Duri</a> <a title="GPN-20140926-AR-DS page 33" href="http://viewer.zmags.com/publication/a170d62b?page=33">ITEM 6—SELECTED FINANCIAL DATA You should</a> <a title="GPN-20140926-AR-DS page 34" href="http://viewer.zmags.com/publication/a170d62b?page=34">ITEM 7—MANAGEMENT'S DISCUSSION AND ANALYSIS OF</a> <a title="GPN-20140926-AR-DS page 35" href="http://viewer.zmags.com/publication/a170d62b?page=35"> Executive Overview In fiscal 2014, reven</a> <a title="GPN-20140926-AR-DS page 36" href="http://viewer.zmags.com/publication/a170d62b?page=36"> and settlement functions; assessments and other f</a> <a title="GPN-20140926-AR-DS page 37" href="http://viewer.zmags.com/publication/a170d62b?page=37"> Fiscal Year Ended May 31, 2014 Compared to Fiscal</a> <a title="GPN-20140926-AR-DS page 38" href="http://viewer.zmags.com/publication/a170d62b?page=38"> For fiscal 2014, our Canadian revenue inc</a> <a title="GPN-20140926-AR-DS page 39" href="http://viewer.zmags.com/publication/a170d62b?page=39"> International Merchant Services Segment. Ope</a> <a title="GPN-20140926-AR-DS page 40" href="http://viewer.zmags.com/publication/a170d62b?page=40"> Fiscal Year Ended May 31, 2013 Compared to Fiscal</a> <a title="GPN-20140926-AR-DS page 41" href="http://viewer.zmags.com/publication/a170d62b?page=41"> For fiscal 2013, our Canadian revenue decre</a> <a title="GPN-20140926-AR-DS page 42" href="http://viewer.zmags.com/publication/a170d62b?page=42"> resulting increase in operating income as well. I</a> <a title="GPN-20140926-AR-DS page 43" href="http://viewer.zmags.com/publication/a170d62b?page=43"> Our capital plan objectives are to suppor</a> <a title="GPN-20140926-AR-DS page 44" href="http://viewer.zmags.com/publication/a170d62b?page=44"> Long-Term Debt and Credit Facilities As of May 3</a> <a title="GPN-20140926-AR-DS page 45" href="http://viewer.zmags.com/publication/a170d62b?page=45"> The Corporate Credit Facility allows us to i</a> <a title="GPN-20140926-AR-DS page 46" href="http://viewer.zmags.com/publication/a170d62b?page=46"> Off-Balance Sheet Arrangements We have not</a> <a title="GPN-20140926-AR-DS page 47" href="http://viewer.zmags.com/publication/a170d62b?page=47"> Reserve for Operating Losses As a part </a> <a title="GPN-20140926-AR-DS page 48" href="http://viewer.zmags.com/publication/a170d62b?page=48"> respectively. As a percentage of the total guaran</a> <a title="GPN-20140926-AR-DS page 49" href="http://viewer.zmags.com/publication/a170d62b?page=49"> qualitative factors, that the fair values of the </a> <a title="GPN-20140926-AR-DS page 50" href="http://viewer.zmags.com/publication/a170d62b?page=50"> determination of existence of needed technology a</a> <a title="GPN-20140926-AR-DS page 51" href="http://viewer.zmags.com/publication/a170d62b?page=51"> services. The ASU requires additional disclosure </a> <a title="GPN-20140926-AR-DS page 52" href="http://viewer.zmags.com/publication/a170d62b?page=52"> Additionally, we are affected by currenc</a> <a title="GPN-20140926-AR-DS page 53" href="http://viewer.zmags.com/publication/a170d62b?page=53">ITEM 8—FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</a> <a title="GPN-20140926-AR-DS page 54" href="http://viewer.zmags.com/publication/a170d62b?page=54"> REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTIN</a> <a title="GPN-20140926-AR-DS page 55" href="http://viewer.zmags.com/publication/a170d62b?page=55"> GLOBAL PAYMENTS INC. CONSOLI</a> <a title="GPN-20140926-AR-DS page 56" href="http://viewer.zmags.com/publication/a170d62b?page=56"> GLOBA</a> <a title="GPN-20140926-AR-DS page 57" href="http://viewer.zmags.com/publication/a170d62b?page=57"> GLOBAL PAYMENTS INC. CONSOLIDATED BAL</a> <a title="GPN-20140926-AR-DS page 58" href="http://viewer.zmags.com/publication/a170d62b?page=58"> GLOBAL PAYMENTS INC. C</a> <a title="GPN-20140926-AR-DS page 59" href="http://viewer.zmags.com/publication/a170d62b?page=59"> GLOBAL PAYME</a> <a title="GPN-20140926-AR-DS page 60" href="http://viewer.zmags.com/publication/a170d62b?page=60"> GLOBAL PAYME</a> <a title="GPN-20140926-AR-DS page 61" href="http://viewer.zmags.com/publication/a170d62b?page=61"> GLOBAL PAYME</a> <a title="GPN-20140926-AR-DS page 62" href="http://viewer.zmags.com/publication/a170d62b?page=62"> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE </a> <a title="GPN-20140926-AR-DS page 63" href="http://viewer.zmags.com/publication/a170d62b?page=63"> Our cash and cash equivalents include settl</a> <a title="GPN-20140926-AR-DS page 64" href="http://viewer.zmags.com/publication/a170d62b?page=64"> estimated losses on returned checks and estimated</a> <a title="GPN-20140926-AR-DS page 65" href="http://viewer.zmags.com/publication/a170d62b?page=65"> bypass the qualitative assessment or if we determ</a> <a title="GPN-20140926-AR-DS page 66" href="http://viewer.zmags.com/publication/a170d62b?page=66"> recovered through the future undiscounted cash fl</a> <a title="GPN-20140926-AR-DS page 67" href="http://viewer.zmags.com/publication/a170d62b?page=67"> The following table sets forth the comput</a> <a title="GPN-20140926-AR-DS page 68" href="http://viewer.zmags.com/publication/a170d62b?page=68"> unrecognized tax benefit in the financial stateme</a> <a title="GPN-20140926-AR-DS page 69" href="http://viewer.zmags.com/publication/a170d62b?page=69"> balances arising in our settlement process for di</a> <a title="GPN-20140926-AR-DS page 70" href="http://viewer.zmags.com/publication/a170d62b?page=70"> As of May 31, 2014 and 2013, settlement processin</a> <a title="GPN-20140926-AR-DS page 71" href="http://viewer.zmags.com/publication/a170d62b?page=71"> cash and a commitment to fund the capital needs o</a> <a title="GPN-20140926-AR-DS page 72" href="http://viewer.zmags.com/publication/a170d62b?page=72"> The amount of revenue and earnings of PayPro</a> <a title="GPN-20140926-AR-DS page 73" href="http://viewer.zmags.com/publication/a170d62b?page=73"> information purposes only and is not necessarily </a> <a title="GPN-20140926-AR-DS page 74" href="http://viewer.zmags.com/publication/a170d62b?page=74"> The goodwill associated with the acquisitio</a> <a title="GPN-20140926-AR-DS page 75" href="http://viewer.zmags.com/publication/a170d62b?page=75"> NOTE 5—PROPERTY AND EQUIPMENT As of May 31, 2014</a> <a title="GPN-20140926-AR-DS page 76" href="http://viewer.zmags.com/publication/a170d62b?page=76"> The following table sets forth the changes</a> <a title="GPN-20140926-AR-DS page 77" href="http://viewer.zmags.com/publication/a170d62b?page=77"> NOTE 7—LONG-TERM DEBT AND CREDIT FACILITIES As o</a> <a title="GPN-20140926-AR-DS page 78" href="http://viewer.zmags.com/publication/a170d62b?page=78"> The Corporate Credit Facility allows us to i</a> <a title="GPN-20140926-AR-DS page 79" href="http://viewer.zmags.com/publication/a170d62b?page=79"> NOTE 8—ACCOUNTS PAYABLE AND ACCRUED LIABILITIES </a> <a title="GPN-20140926-AR-DS page 80" href="http://viewer.zmags.com/publication/a170d62b?page=80"> Our effective tax rates, as applied to inc</a> <a title="GPN-20140926-AR-DS page 81" href="http://viewer.zmags.com/publication/a170d62b?page=81"> Undistributed earnings of $577.0 million f</a> <a title="GPN-20140926-AR-DS page 82" href="http://viewer.zmags.com/publication/a170d62b?page=82"> throughout the world, including such major jurisd</a> <a title="GPN-20140926-AR-DS page 83" href="http://viewer.zmags.com/publication/a170d62b?page=83"> The following table summarizes the share-b</a> <a title="GPN-20140926-AR-DS page 84" href="http://viewer.zmags.com/publication/a170d62b?page=84"> Employee Stock Purchase Plan We have an </a> <a title="GPN-20140926-AR-DS page 85" href="http://viewer.zmags.com/publication/a170d62b?page=85"> NOTE 12—SUPPLEMENTAL CASH FLOW INFORMATION </a> <a title="GPN-20140926-AR-DS page 86" href="http://viewer.zmags.com/publication/a170d62b?page=86"> NOTE 14—SEGMENT INFORMATION General Information </a> <a title="GPN-20140926-AR-DS page 87" href="http://viewer.zmags.com/publication/a170d62b?page=87"> The following is a breakdown of long-lived assets</a> <a title="GPN-20140926-AR-DS page 88" href="http://viewer.zmags.com/publication/a170d62b?page=88"> (“BIN”) for Visa transactions and an Interbank Ca</a> <a title="GPN-20140926-AR-DS page 89" href="http://viewer.zmags.com/publication/a170d62b?page=89"> Description Allowance for doubtful accounts May</a> <a title="GPN-20140926-AR-DS page 90" href="http://viewer.zmags.com/publication/a170d62b?page=90">ITEM 9—CHANGES IN AND DISAGREEMENTS WITH ACCOUNTAN</a> <a title="GPN-20140926-AR-DS page 91" href="http://viewer.zmags.com/publication/a170d62b?page=91">PART III ITEM 10—DIRECTORS, EXECUTIVE OFFICERS </a> <a title="GPN-20140926-AR-DS page 92" href="http://viewer.zmags.com/publication/a170d62b?page=92"> The following table provides certain info</a> <a title="GPN-20140926-AR-DS page 93" href="http://viewer.zmags.com/publication/a170d62b?page=93">PART IV ITEM 15—EXHIBITS, FINANCIAL STATEMENT S</a> <a title="GPN-20140926-AR-DS page 94" href="http://viewer.zmags.com/publication/a170d62b?page=94"> Exhibit No. </a> <a title="GPN-20140926-AR-DS page 95" href="http://viewer.zmags.com/publication/a170d62b?page=95"> Exhibit No. </a> <a title="GPN-20140926-AR-DS page 96" href="http://viewer.zmags.com/publication/a170d62b?page=96"> Exhibit No. </a> <a title="GPN-20140926-AR-DS page 97" href="http://viewer.zmags.com/publication/a170d62b?page=97"> Exhibit No. </a> <a title="GPN-20140926-AR-DS page 98" href="http://viewer.zmags.com/publication/a170d62b?page=98">SIGNATURES Pursuant to the requirements </a> <a title="GPN-20140926-AR-DS page 99" href="http://viewer.zmags.com/publication/a170d62b?page=99">$2,554.2 $2,375.9 EXECUTIVE LEADERSHIP $2</a> <a title="GPN-20140926-AR-DS page 100" href="http://viewer.zmags.com/publication/a170d62b?page=100">Annual Report on Form 10-K Included with this Ann</a>