If you are visually impaired or blind, you can visit the PDF version by Pressing CONTROL + ALT + 4
<br /> SERVICE. DRIVEN. COMMERCE<br /> GLOBAL PAYMENTS<br /> 2015 ANNUAL REPORT<br /> SERVICE. DRIVEN. COMMERCE>1.7M<br /> MERCHANTS SERVICED<br /> 4400<br /> EMPLOYEES<br /> > 7.2B<br /> $425B<br /> TRANSACTIONS PROCESSED DOLLAR VOLUME SETTLED<br /> 29<br /> COUNTRIES<br /> EXECUTIVE LEADERSHIP<br /> Jeffrey S. Sloan David E. Mangum Cameron M. Bready<br /> Chief Executive Officer President and Chief Operating Officer Executive Vice President and Chief Financial Officer<br /> David L. Green Dr. Guido F. Sacchi Jane M. Elliott<br /> Executive Vice President, General Counsel and Executive Vice President and Chief Information Officer Executive Vice President and Chief of Staff<br /> Corporate Secretary<br /> BOA<a title="Global Payments 2015 Annual Report page 1" href="http://viewer.zmags.com/publication/edb5b378?page=1"> SERVICE. DRIVEN. COMMERCE GLOBAL</a> <a title="Global Payments 2015 Annual Report page 2" href="http://viewer.zmags.com/publication/edb5b378?page=2">>1.7M MERCHANTS SERVICED 4400 EMPLOYEES > 7.</a> <a title="Global Payments 2015 Annual Report page 3" href="http://viewer.zmags.com/publication/edb5b378?page=3"> UNITED STATES SECURITI</a> <a title="Global Payments 2015 Annual Report page 4" href="http://viewer.zmags.com/publication/edb5b378?page=4"> GLOBAL PAYMENTS INC. 2015 FORM 10-K ANNU</a> <a title="Global Payments 2015 Annual Report page 5" href="http://viewer.zmags.com/publication/edb5b378?page=5"> CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATE</a> <a title="Global Payments 2015 Annual Report page 6" href="http://viewer.zmags.com/publication/edb5b378?page=6">PART I ITEM 1 - BUSINESS Recent Developments</a> <a title="Global Payments 2015 Annual Report page 7" href="http://viewer.zmags.com/publication/edb5b378?page=7"> our revolving credit facility. Pay and Shop Limit</a> <a title="Global Payments 2015 Annual Report page 8" href="http://viewer.zmags.com/publication/edb5b378?page=8"> Merchant Services Overview Our payment solutions</a> <a title="Global Payments 2015 Annual Report page 9" href="http://viewer.zmags.com/publication/edb5b378?page=9"> may be captured and transmitted to our network th</a> <a title="Global Payments 2015 Annual Report page 10" href="http://viewer.zmags.com/publication/edb5b378?page=10"> Business Segments North America Merchant Service</a> <a title="Global Payments 2015 Annual Report page 11" href="http://viewer.zmags.com/publication/edb5b378?page=11"> China, Hong Kong, India, Macau, Malaysia, Maldive</a> <a title="Global Payments 2015 Annual Report page 12" href="http://viewer.zmags.com/publication/edb5b378?page=12"> Emerging Trends The payments industry continues </a> <a title="Global Payments 2015 Annual Report page 13" href="http://viewer.zmags.com/publication/edb5b378?page=13">  Scalable Operating Environment and Technolog</a> <a title="Global Payments 2015 Annual Report page 14" href="http://viewer.zmags.com/publication/edb5b378?page=14"> The rules also contain prohibitions on network ex</a> <a title="Global Payments 2015 Annual Report page 15" href="http://viewer.zmags.com/publication/edb5b378?page=15">  file reports on large cash transactions; and</a> <a title="Global Payments 2015 Annual Report page 16" href="http://viewer.zmags.com/publication/edb5b378?page=16"> Our SEC filings may also be viewed and copied at </a> <a title="Global Payments 2015 Annual Report page 17" href="http://viewer.zmags.com/publication/edb5b378?page=17">ITEM 1A - RISK FACTORS An investment in our com</a> <a title="Global Payments 2015 Annual Report page 18" href="http://viewer.zmags.com/publication/edb5b378?page=18"> imposition of penalties and fines under state, fe</a> <a title="Global Payments 2015 Annual Report page 19" href="http://viewer.zmags.com/publication/edb5b378?page=19"> In addition, the services we deliver to the elect</a> <a title="Global Payments 2015 Annual Report page 20" href="http://viewer.zmags.com/publication/edb5b378?page=20"> Our systems and our third-party providers' system</a> <a title="Global Payments 2015 Annual Report page 21" href="http://viewer.zmags.com/publication/edb5b378?page=21"> There may be a decline in the use of cards as a p</a> <a title="Global Payments 2015 Annual Report page 22" href="http://viewer.zmags.com/publication/edb5b378?page=22"> A downturn in the economy could force retailers t</a> <a title="Global Payments 2015 Annual Report page 23" href="http://viewer.zmags.com/publication/edb5b378?page=23"> Federal Reserve System (the “Federal Reserve”) on</a> <a title="Global Payments 2015 Annual Report page 24" href="http://viewer.zmags.com/publication/edb5b378?page=24"> In addition, in certain of the jurisdictions in w</a> <a title="Global Payments 2015 Annual Report page 25" href="http://viewer.zmags.com/publication/edb5b378?page=25">  If the integration process causes any delays</a> <a title="Global Payments 2015 Annual Report page 26" href="http://viewer.zmags.com/publication/edb5b378?page=26"> We record deferred income taxes to reflect the ef</a> <a title="Global Payments 2015 Annual Report page 27" href="http://viewer.zmags.com/publication/edb5b378?page=27"> Our balance sheet includes significant amounts of</a> <a title="Global Payments 2015 Annual Report page 28" href="http://viewer.zmags.com/publication/edb5b378?page=28"> Anti-takeover provisions of our articles of incor</a> <a title="Global Payments 2015 Annual Report page 29" href="http://viewer.zmags.com/publication/edb5b378?page=29">ITEM 2 - PROPERTIES The following summarizes by</a> <a title="Global Payments 2015 Annual Report page 30" href="http://viewer.zmags.com/publication/edb5b378?page=30">Part II ITEM 5 - MARKET FOR REGISTRANT'S COMMON</a> <a title="Global Payments 2015 Annual Report page 31" href="http://viewer.zmags.com/publication/edb5b378?page=31"> Stock Performance Graph The following graph comp</a> <a title="Global Payments 2015 Annual Report page 32" href="http://viewer.zmags.com/publication/edb5b378?page=32">Information about the shares of our common stock t</a> <a title="Global Payments 2015 Annual Report page 33" href="http://viewer.zmags.com/publication/edb5b378?page=33">Operating income, net income, net income attributa</a> <a title="Global Payments 2015 Annual Report page 34" href="http://viewer.zmags.com/publication/edb5b378?page=34"> Our business does not have pronounced seasonality</a> <a title="Global Payments 2015 Annual Report page 35" href="http://viewer.zmags.com/publication/edb5b378?page=35"> On December 17, 2014, we announced an agreement w</a> <a title="Global Payments 2015 Annual Report page 36" href="http://viewer.zmags.com/publication/edb5b378?page=36"> Selling, General and Administrative Expenses Sel</a> <a title="Global Payments 2015 Annual Report page 37" href="http://viewer.zmags.com/publication/edb5b378?page=37"> Revenues For fiscal 2015 revenues increased 8.6%</a> <a title="Global Payments 2015 Annual Report page 38" href="http://viewer.zmags.com/publication/edb5b378?page=38"> International Merchant Services Segment. Opera</a> <a title="Global Payments 2015 Annual Report page 39" href="http://viewer.zmags.com/publication/edb5b378?page=39"> Fiscal Year Ended May 31, 2014 Compared to Fiscal</a> <a title="Global Payments 2015 Annual Report page 40" href="http://viewer.zmags.com/publication/edb5b378?page=40"> For fiscal 2014, our Canadian revenues increased </a> <a title="Global Payments 2015 Annual Report page 41" href="http://viewer.zmags.com/publication/edb5b378?page=41"> Other Income/Expense, Net Other expense, net, in</a> <a title="Global Payments 2015 Annual Report page 42" href="http://viewer.zmags.com/publication/edb5b378?page=42"> During year ended May 31, 2015, we changed from t</a> <a title="Global Payments 2015 Annual Report page 43" href="http://viewer.zmags.com/publication/edb5b378?page=43"> February 28, 2019. At maturity, 27.5% of the term</a> <a title="Global Payments 2015 Annual Report page 44" href="http://viewer.zmags.com/publication/edb5b378?page=44"> BIN/ICA Agreements We have entered into sponsors</a> <a title="Global Payments 2015 Annual Report page 45" href="http://viewer.zmags.com/publication/edb5b378?page=45"> liable for the reversed charges. We have historic</a> <a title="Global Payments 2015 Annual Report page 46" href="http://viewer.zmags.com/publication/edb5b378?page=46"> We derive our projected loss rate assumptions pri</a> <a title="Global Payments 2015 Annual Report page 47" href="http://viewer.zmags.com/publication/edb5b378?page=47"> ranging from 2 to 26 years. The useful lives for </a> <a title="Global Payments 2015 Annual Report page 48" href="http://viewer.zmags.com/publication/edb5b378?page=48"> Income Taxes We determine our provision for inco</a> <a title="Global Payments 2015 Annual Report page 49" href="http://viewer.zmags.com/publication/edb5b378?page=49">ITEM 7A - QUANTITATIVE AND QUALITATIVE DISCLOSURES</a> <a title="Global Payments 2015 Annual Report page 50" href="http://viewer.zmags.com/publication/edb5b378?page=50">ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DA</a> <a title="Global Payments 2015 Annual Report page 51" href="http://viewer.zmags.com/publication/edb5b378?page=51"> REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTIN</a> <a title="Global Payments 2015 Annual Report page 52" href="http://viewer.zmags.com/publication/edb5b378?page=52"> GLOBAL PAYMENTS INC. CONSOLIDAT</a> <a title="Global Payments 2015 Annual Report page 53" href="http://viewer.zmags.com/publication/edb5b378?page=53"> GLOBAL PAYME</a> <a title="Global Payments 2015 Annual Report page 54" href="http://viewer.zmags.com/publication/edb5b378?page=54"> GLOBAL PAYMENTS INC. CONSOLIDATED BALAN</a> <a title="Global Payments 2015 Annual Report page 55" href="http://viewer.zmags.com/publication/edb5b378?page=55"> GLOBAL PAYMENTS INC. CONS</a> <a title="Global Payments 2015 Annual Report page 56" href="http://viewer.zmags.com/publication/edb5b378?page=56"> GLOBAL PAYMENTS I</a> <a title="Global Payments 2015 Annual Report page 57" href="http://viewer.zmags.com/publication/edb5b378?page=57"> GLOBAL PAYMENTS I</a> <a title="Global Payments 2015 Annual Report page 58" href="http://viewer.zmags.com/publication/edb5b378?page=58"> GLOBAL PAYMENTS I</a> <a title="Global Payments 2015 Annual Report page 59" href="http://viewer.zmags.com/publication/edb5b378?page=59">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE</a> <a title="Global Payments 2015 Annual Report page 60" href="http://viewer.zmags.com/publication/edb5b378?page=60"> obligation to the merchant. Settlement-related ca</a> <a title="Global Payments 2015 Annual Report page 61" href="http://viewer.zmags.com/publication/edb5b378?page=61"> estimated check returns and recovery amounts are </a> <a title="Global Payments 2015 Annual Report page 62" href="http://viewer.zmags.com/publication/edb5b378?page=62"> fair value over the amounts assigned to the asset</a> <a title="Global Payments 2015 Annual Report page 63" href="http://viewer.zmags.com/publication/edb5b378?page=63">Income taxes — Deferred income taxes are determine</a> <a title="Global Payments 2015 Annual Report page 64" href="http://viewer.zmags.com/publication/edb5b378?page=64"> Earnings per share — Basic earnings per share is </a> <a title="Global Payments 2015 Annual Report page 65" href="http://viewer.zmags.com/publication/edb5b378?page=65"> Recently Issued Pronouncements Not Yet Adopted I</a> <a title="Global Payments 2015 Annual Report page 66" href="http://viewer.zmags.com/publication/edb5b378?page=66"> Timing differences, interchange fees, Merchant Re</a> <a title="Global Payments 2015 Annual Report page 67" href="http://viewer.zmags.com/publication/edb5b378?page=67">As of May 31, 2015 and 2014, settlement processing</a> <a title="Global Payments 2015 Annual Report page 68" href="http://viewer.zmags.com/publication/edb5b378?page=68"> of this transaction, we have not finalized the va</a> <a title="Global Payments 2015 Annual Report page 69" href="http://viewer.zmags.com/publication/edb5b378?page=69"> The following table summarizes the preliminary fa</a> <a title="Global Payments 2015 Annual Report page 70" href="http://viewer.zmags.com/publication/edb5b378?page=70"> Bank of the Philippine Islands On December 17, 2</a> <a title="Global Payments 2015 Annual Report page 71" href="http://viewer.zmags.com/publication/edb5b378?page=71"> The amount of revenue and earnings of PayPros sin</a> <a title="Global Payments 2015 Annual Report page 72" href="http://viewer.zmags.com/publication/edb5b378?page=72"> The goodwill associated with the acquisition was </a> <a title="Global Payments 2015 Annual Report page 73" href="http://viewer.zmags.com/publication/edb5b378?page=73">Redeemable Noncontrolling Interest Acquisition </a> <a title="Global Payments 2015 Annual Report page 74" href="http://viewer.zmags.com/publication/edb5b378?page=74">NOTE 5—GOODWILL AND INTANGIBLE ASSETS As of May</a> <a title="Global Payments 2015 Annual Report page 75" href="http://viewer.zmags.com/publication/edb5b378?page=75">The estimated amortization expense of acquired int</a> <a title="Global Payments 2015 Annual Report page 76" href="http://viewer.zmags.com/publication/edb5b378?page=76"> The Corporate Credit Facility allows us to issue </a> <a title="Global Payments 2015 Annual Report page 77" href="http://viewer.zmags.com/publication/edb5b378?page=77">At May 31, 2015, our interest rate swap agreement </a> <a title="Global Payments 2015 Annual Report page 78" href="http://viewer.zmags.com/publication/edb5b378?page=78">NOTE 8—INCOME TAX The provision for income taxe</a> <a title="Global Payments 2015 Annual Report page 79" href="http://viewer.zmags.com/publication/edb5b378?page=79"> Deferred income taxes are determined based on the</a> <a title="Global Payments 2015 Annual Report page 80" href="http://viewer.zmags.com/publication/edb5b378?page=80"> Undistributed earnings of $696.9 million from cer</a> <a title="Global Payments 2015 Annual Report page 81" href="http://viewer.zmags.com/publication/edb5b378?page=81">A reconciliation of the beginning and ending amoun</a> <a title="Global Payments 2015 Annual Report page 82" href="http://viewer.zmags.com/publication/edb5b378?page=82">During fiscal 2013, we entered into an ASR with a </a> <a title="Global Payments 2015 Annual Report page 83" href="http://viewer.zmags.com/publication/edb5b378?page=83"> The performance units granted to certain executiv</a> <a title="Global Payments 2015 Annual Report page 84" href="http://viewer.zmags.com/publication/edb5b378?page=84"> Including the restricted stock, performance units</a> <a title="Global Payments 2015 Annual Report page 85" href="http://viewer.zmags.com/publication/edb5b378?page=85">during fiscal 2015, 2014 and 2013 was $16.6 millio</a> <a title="Global Payments 2015 Annual Report page 86" href="http://viewer.zmags.com/publication/edb5b378?page=86">The following table is the reconciliation of net i</a> <a title="Global Payments 2015 Annual Report page 87" href="http://viewer.zmags.com/publication/edb5b378?page=87"> NOTE 14—SEGMENT INFORMATION General Information </a> <a title="Global Payments 2015 Annual Report page 88" href="http://viewer.zmags.com/publication/edb5b378?page=88"> Enterprise-Wide Information As a percentage of o</a> <a title="Global Payments 2015 Annual Report page 89" href="http://viewer.zmags.com/publication/edb5b378?page=89"> BIN/ICA Agreements We have entered into sponsors</a> <a title="Global Payments 2015 Annual Report page 90" href="http://viewer.zmags.com/publication/edb5b378?page=90"> to the measurement of certain deferred tax assets</a> <a title="Global Payments 2015 Annual Report page 91" href="http://viewer.zmags.com/publication/edb5b378?page=91"> GLOBAL PAYMENTS INC. SCHEDULE II Va</a> <a title="Global Payments 2015 Annual Report page 92" href="http://viewer.zmags.com/publication/edb5b378?page=92">ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNT</a> <a title="Global Payments 2015 Annual Report page 93" href="http://viewer.zmags.com/publication/edb5b378?page=93">PART III ITEM 10 - DIRECTORS, EXECUTIVE OFFICER</a> <a title="Global Payments 2015 Annual Report page 94" href="http://viewer.zmags.com/publication/edb5b378?page=94">ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSA</a> <a title="Global Payments 2015 Annual Report page 95" href="http://viewer.zmags.com/publication/edb5b378?page=95">PART IV ITEM 15 - EXHIBITS, FINANCIAL STATEMENT</a> <a title="Global Payments 2015 Annual Report page 96" href="http://viewer.zmags.com/publication/edb5b378?page=96"> Exhibit No. </a> <a title="Global Payments 2015 Annual Report page 97" href="http://viewer.zmags.com/publication/edb5b378?page=97"> Exhibit No. </a> <a title="Global Payments 2015 Annual Report page 98" href="http://viewer.zmags.com/publication/edb5b378?page=98"> Exhibit No. </a> <a title="Global Payments 2015 Annual Report page 99" href="http://viewer.zmags.com/publication/edb5b378?page=99"> Exhibit No. </a> <a title="Global Payments 2015 Annual Report page 100" href="http://viewer.zmags.com/publication/edb5b378?page=100">SIGNATURES Pursuant to the requirements of Sect</a> <a title="Global Payments 2015 Annual Report page 101" href="http://viewer.zmags.com/publication/edb5b378?page=101">SHAREHOLDER INFORMATION Annual Report on Form</a> <a title="Global Payments 2015 Annual Report page 102" href="http://viewer.zmags.com/publication/edb5b378?page=102"> </a> <a title="Global Payments 2015 Annual Report page 103" href="http://viewer.zmags.com/publication/edb5b378?page=103"> </a>