ADJUSTED EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS (NON-GAAP)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
CONSOLIDATED FINANCIAL HIGHLIGHTS:
Calendar Year 2020
Calendar Year 2021
(In millions rounded to nearest hundred thousand, except per share data)
Q1
Q2
Q3
Q4
CY
Q1
Q2
Q3
Q4
CY
Mar 20
Jun 20
Sep 20
Dec 20
2020
Mar 21
Jun 21
Sep 21
Dec 21
2021
ADJUSTED EARNINGS INCOME AND EXPENSE(1)
GAAP Revenues
$ 1,903.6
$ 1,672.0
$ 1,917.8
$ 1,930.2
$ 7,423.6
$ 1,990.0
$ 2,137.4
$ 2,202.3
$ 2,194.0
$ 8,523.8
Less: Adjustments
(174.7)
(151.1)
(171.9)
(177.8)
(675.6)
(177.8)
(196.9)
(202.0)
(209.1)
(785.8)
Adjusted net revenue
$ 1,728.9
$ 1,520.9
$ 1,745.9
$ 1,752.4
$ 6,748.0
$ 1,812.2
$ 1,940.5
$ 2,000.3
$ 1,984.9
$ 7,738.0
Adjusted operating expenses:
Cost of service
549.2
507.2
527.3
539.5
2,123.2
534.0
550.9
561.1
571.0
2,217.0
Selling, general and administrative
504.9
451.5
500.9
486.2
1,943.5
543.1
579.4
583.6
580.4
2,286.5
1,054.1
958.7
1,028.2
1,025.7
4,066.7
1,077.1
1,130.4
1,144.8
1,151.4
4,503.5
Adjusted operating income:
$ 674.7
$ 562.2
$ 717.7
$ 726.7
$ 2,681.3
$ 735.1
$ 810.2
$ 855.6
$ 833.5
$ 3,234.3
Adjusted interest and other income
2.5
4.8
4.5
7.9
19.7
4.2
5.5
6.6
3.3
19.6
Adjusted interest and other expense
(86.0)
(82.9)
(82.2)
(85.1)
(336.2)
(83.1)
(80.6)
(82.2)
(87.8)
(333.7)
(83.5)
(78.1)
(77.7)
(77.2)
(316.5)
(78.9)
(75.1)
(75.6)
(84.5)
(314.1)
Adjusted income before income taxes
591.3
484.1
639.9
649.5
2,364.8
656.2
735.1
780.0
749.0
2,920.3
Adjusted provision for income taxes
121.1
99.0
127.9
122.7
470.6
128.7
144.4
150.1
142.5
565.8
Adjusted net income
470.2
385.2
512.0
526.8
1,894.2
527.5
590.6
629.9
606.5
2,354.5
Plus: Equity Investment Income, net of tax
12.4
12.9
12.7
17.0
55.0
16.5
16.6
17.1
18.2
68.4
Net income attributable to noncontrolling interests, net of tax
(8.8)
(3.8)
(11.0)
(3.3)
(26.8)
(2.7)
(4.2)
(9.6)
(10.0)
(26.4)
Adjusted net income attributable to Global Payments
$ 473.8
$ 394.3
$ 513.8
$ 540.5
$ 1,922.4
$ 541.4
$ 603.0
$ 637.3
$ 614.7
$ 2,396.4
Diluted weighted average shares outstanding
300.8
300.2
300.5
300.5
300.5
297.7
296.1
292.5
288.5
293.7
Adjusted diluted earnings per share(2)
$ 1.58
$ 1.31
$ 1.71
$ 1.80
$ 6.40
$ 1.82
$ 2.04
$ 2.18
$ 2.13
$ 8.16
SELECTED BALANCE SHEET AND CASH FLOW HIGHLIGHTS
Available cash(3)
1,297.8
1,207.2
1,426.1
1,100.9
1,100.9
1,112.6
970.3
1,108.6
894.6
894.6
Debt(4)
$ 9,706.6
$ 9,273.6
$ 9,268.5
$ 9,293.8
$ 9,293.8
$ 9,691.6
$ 10,269.6
$ 10,748.9
$ 11,493.3
$ 11,493.3
Adjusted Free Cash Flow:(5)
Cash flow from operating activities
$ 436.6
$ 523.7
$ 584.5
$ 769.4
$ 2,314.2
$ 599.4
$ 510.2
$ 918.0
$ 753.2
$ 2,780.8
Changes in settlement processing assets and obligations, net
(13.0)
(123.5)
(18.9)
29.6
(125.9)
(21.7)
(3.6)
(2.9)
(100.4)
(128.6)
Acquisition and integration expenses
71.6
85.1
59.8
105.8
322.3
91.7
78.2
69.3
98.7
337.9
Capital expenditures
(104.8)
(103.6)
(121.0)
(106.8)
(436.2)
(86.2)
(133.4)
(131.2)
(142.4)
(493.2)
Distributions to noncontrolling interests
-
-
(7.0)
(19.2)
(26.2)
-
-
-
-
-
$ 390.4
$ 381.8
$ 497.4
$ 778.7
$ 2,048.2
$ 583.2
$ 451.4
$ 853.2
$ 609.1
$ 2,496.9
(1) Global Payments supplements revenues, operating income and EPS determined in accordance with U.S. GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this document to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. Management believes adjusted net revenue more closely reflects the economic benefits to the company's core business and allows for better comparisons with industry peers. Management uses these non-GAAP financial measures, together with other metrics, to set goals for and measure the performance of the business and to determine incentive compensation. Adjusted net revenue, adjusted operating income, adjusted operating margin, adjusted net income and adjusted EPS should be considered in addition to, and not as substitutes for, revenues, operating income, net income and EPS determined in accordance with GAAP. The non-GAAP financial measures reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.
Adjusted net revenue excludes gross-up related payments associated with certain lines of business to reflect economic benefits to the company. On a GAAP basis, these payments are presented gross in both revenues and operating expenses. Adjusted operating income, adjusted net income and adjusted EPS exclude acquisition-related amortization expense, share-based compensation expense, acquisition and integration expense and certain other items, such as unusual, direct and discrete costs due to the global pandemic, specific to each reporting period. Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenue. The tax rate used in determining the income tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
(2) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
(3) Available cash is defined as cash and cash equivalents excluding settlement-related cash balances, funds held as collateral for merchant losses and funds held for customers.
(4) Debt excludes lines of credit that we use to fund settlement.
(5) Management believes adjusted free cash flow is a useful measure of the company's ability to service debt, return capital to shareholders, invest in the business and demonstrate value creation of our underlying operations. Adjusted free cash flow, a non-GAAP measure, is calculated as net operating cash flows, excluding the impact of settlement processing assets and obligations and acquisition and integration expenses, less capital expenditures and distributions to non-controlling interests. Our measure of adjusted free cash flow reflects management's judgment of particular items and may not be comparable to similarly titled measures reported by other companies.
Note: Amounts may not sum due to rounding.
CY2021 Q4 Reconciliation Curren
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP
FOURTH QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
December 31, 2021
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 2,194.0
$ (209.1)
$ -
$ 1,984.9
Operating expenses:
Cost of service
968.0
(75.5)
(321.4)
571.0
Selling, general and administrative
905.0
(134.6)
(190.0)
580.4
1,873.0
(210.1)
(511.5)
1,151.4
Operating income
$ 321.0
$ 1.0
$ 511.5
$ 833.5
Interest and other income
3.3
-0
-0
3.3
Interest and other expense
(87.8)
-0
-0
(87.8)
(84.5)
-0
-0
(84.5)
Income before income taxes and equity in income of equity method investments
236.5
1.0
511.5
749.0
Income tax expense(3)
37.4
0.2
104.9
142.5
Income before equity in income of equity method investments
199.1
0.8
406.6
606.5
Equity in income of equity method investments, net of tax
18.1
-
0.1
18.2
Net income
$ 217.2
$ 0.8
$ 406.7
$ 624.7
Net income attributable to noncontrolling interests, net of income tax
(8.7)
-
(1.2)
(10.0)
Adjusted net income attributable to Global Payments
$ 208.5
$ 0.8
$ 405.5
$ 614.7
Diluted shares(4)
288.5
288.5
Adjusted diluted earnings per share(4)
$ 0.72
$ -
$ 1.41
$ 2.13
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended December 31, 2021 includes $1.0 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended December 31, 2021, earnings adjustments to operating income included $321.4 million in cost of services (COS) and $190.0 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $321.1 million and other items of $0.3 million. Adjustments to SG&A include share-based compensation expense of $34.7 million, acquisition and integration expenses of $98.6 million, facilities exit charges of $56.8 million and other items of $(0.1) million. Net income attributable to Global Payments also reflects the removal of $2.5 million of equity method investment earnings from our interest in a private equity investment fund.
(3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
(4) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2021 Q3 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP
THIRD QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
September 30, 2021
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 2,202.3
$ (202.0)
$ -
$ 2,000.3
Operating expenses:
Cost of service
944.2
(65.3)
(317.8)
561.1
Selling, general and administrative
858.1
(137.7)
(136.7)
583.6
1,802.3
(203.0)
(454.5)
1,144.8
Operating income
$ 400.1
$ 1.0
$ 454.5
$ 855.6
Interest and other income
6.3
-
0.3
6.6
Interest and other expense
(82.2)
-
-
(82.2)
(75.9)
-
0.3
(75.6)
Income before income taxes and equity in income of equity method investments
324.2
1.0
454.8
780.0
Income tax expense(3)
50.1
0.2
99.8
150.1
Income before equity in income of equity method investments
274.1
0.8
355.0
629.9
Equity in income of equity method investments, net of tax
31.4
-
(14.3)
17.1
Net income
$ 305.5
$ 0.8
$ 340.7
$ 647.0
Net income attributable to noncontrolling interests, net of income tax
(8.7)
-
(0.9)
(9.6)
Adjusted net income attributable to Global Payments
$ 296.7
$ 0.8
$ 339.8
$ 637.3
Diluted shares(4)
292.5
292.5
Adjusted diluted earnings per share(4)
$ 1.01
$ -
$ 1.16
$ 2.18
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended September 30, 2021 includes $1.0 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended September 30, 2021, earnings adjustments to operating income included $317.8 million in cost of services (COS) and $136.7 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $319.9 million and other items of $(2.1) million. Adjustments to SG&A include share-based compensation expense of $65.6 million, acquisition and integration expenses of $71.6 million and other items of $(0.5) million. Net income attributable to Global Payments also reflects the removal of $14.5 million of equity method investment earnings from our interest in a private equity investment fund.
(3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
(4) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2021 Q2 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP
SECOND QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
June 30, 2021
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 2,137.4
$ (196.9)
$ -
$ 1,940.5
Operating expenses:
Cost of service
936.3
(60.7)
(324.7)
550.9
Selling, general and administrative
838.6
(137.5)
(121.6)
579.4
1,774.9
(198.2)
(446.4)
1,130.4
Operating income
$ 362.6
$ 1.3
$ 446.4
$ 810.2
Interest and other income
5.5
-
-
5.5
Interest and other expense
(80.6)
-
-
(80.6)
(75.1)
-
-
(75.1)
Income before income taxes and equity in income of equity method investments
287.5
1.3
446.4
735.1
Income tax expense(3)
60.8
0.3
83.4
144.4
Income before equity in income of equity method investments
226.6
1.0
363.0
590.6
Equity in income of equity method investments, net of tax
40.2
-
(23.6)
16.6
Net income
$ 266.8
$ 1.0
$ 339.4
$ 607.1
Net income attributable to noncontrolling interests, net of income tax
(3.2)
-
(1.0)
(4.2)
Adjusted net income attributable to Global Payments
$ 263.6
$ 1.0
$ 338.4
$ 603.0
Diluted shares(4)
296.1
296.1
Adjusted diluted earnings per share(4)
$ 0.89
$ -
$ 1.14
$ 2.04
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended June 30, 2021 includes $1.3 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended June 30, 2021, earnings adjustments to operating income include $324.7 million in cost of services (COS) and $121.6 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $324.7 million. Adjustments to SG&A include share-based compensation expense of $43.3 million and acquisition and integration expenses of $78.3 million. Net income attributable to Global Payments also reflects the removal of $23.8 million of equity method investment earnings from our interest in a private equity investment fund.
(3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
(4) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2021 Q1 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP
FIRST QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
March 31, 2021
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 1,990.0
$ (177.8)
$ -
$ 1,812.2
Operating expenses:
Cost of service
925.2
(62.0)
(329.2)
534.0
Selling, general and administrative
789.5
(117.5)
(128.9)
543.1
1,714.7
(179.5)
(458.1)
1,077.1
Operating income
$ 275.3
$ 1.7
$ 458.1
$ 735.1
Interest and other income
4.2
-
-
4.2
Interest and other expense
(83.1)
-
-
(83.1)
(78.9)
-
-
(78.9)
Income before income taxes and equity in income of equity method investments
196.4
1.7
458.1
656.2
Income tax expense(3)
20.7
0.3
107.7
128.7
Income before equity in income of equity method investments
175.7
1.4
350.4
527.5
Equity in income of equity method investments, net of tax
22.7
-
(6.2)
16.5
Net income
$ 198.4
$ 1.4
$ 344.2
$ 544.0
Net income attributable to noncontrolling interests, net of income tax
(1.7)
-
(1.0)
(2.7)
Adjusted net income attributable to Global Payments
$ 196.7
$ 1.4
$ 343.2
$ 541.4
Diluted shares(4)
297.7
297.7
Adjusted diluted earnings per share(4)
$ 0.66
$ -
$ 1.15
$ 1.82
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2021 includes $1.7 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended March 31, 2021, earnings adjustments to operating income include $329.2 million in cost of services (COS) and $128.9 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $329.2 million. Adjustments to SG&A include share-based compensation expense of $37.2 million and acquisition and integration expenses of $91.7 million. Net income attributable to Global Payments also reflects the removal of $6.3 million of equity method investment earnings from our interest in a private equity investment fund.
(3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
(4) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2020 Q4 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP
FOURTH QUARTER CY20
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
December 31, 2020
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 1,930.2
$ (177.8)
$ -
$ 1,752.4
Operating expenses:
Cost of service
922.2
(65.3)
(317.4)
539.5
Selling, general and administrative
756.0
(114.9)
(154.9)
486.2
1,678.2
(180.2)
(472.3)
1,025.7
Operating income
$ 252.0
$ 2.4
$ 472.3
$ 726.7
Interest and other income
8.3
-
(0.4)
7.9
Interest and other expense
(85.1)
-
-
(85.1)
(76.8)
-
(0.4)
(77.2)
Income before income taxes and equity in income of equity method investments
175.2
2.4
471.9
649.5
Income tax expense(3)
18.0
0.4
104.3
122.7
Income before equity in income of equity method investments
157.2
2.0
367.6
526.8
Equity in income of equity method investments, net of tax
27.6
-
(10.6)
17.0
Net income
$ 184.8
$ 2.0
$ 357.0
$ 543.8
Net income attributable to noncontrolling interests, net of income tax
(2.2)
-
(1.1)
(3.3)
Adjusted net income attributable to Global Payments
$ 182.6
$ 2.0
$ 355.9
$ 540.5
Diluted shares(4)
300.5
300.5
Adjusted diluted earnings per share(4)
$ 0.61
$ 0.01
$ 1.18
$ 1.80
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the Company. For the three months ended December 31, 2020 includes $2.4 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended December 31, 2020, earnings adjustments to operating income include $317.4 million in cost of services (COS) and $154.9 million in selling, general and administrative expenses (SG&A). Adjustments to COS include amortization of acquired intangibles of $315.3 million and $2.1 million of other items. Adjustments to SG&A include share-based compensation expense of $43.7 million, acquisition and integration expenses of $105.8 million and $5.4 million of other items. Other items included in COS and SG&A include employee termination benefits and other incremental charges directly related to COVID-19. Net income attributable to Global Payments also reflects the removal of $10.8 million of equity method investment earnings from our interest in a private equity investment fund.
(3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
(4) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2020 Q3 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP
THIRD QUARTER CY20
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
September 30, 2020
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 1,917.8
$ (171.9)
$ -
$ 1,745.9
Operating expenses:
Cost of service
900.9
(56.3)
(317.3)
527.3
Selling, general and administrative
726.5
(118.1)
(107.4)
500.9
1,627.4
(174.4)
(424.7)
1,028.2
Operating income
$ 290.4
$ 2.6
$ 424.7
$ 717.7
Interest and other income
30.0
-
(25.5)
4.5
Interest and other expense
(83.0)
-
0.7
(82.2)
(53.0)
-
(24.7)
(77.7)
Income before income taxes and equity in income of equity method investments
237.4
2.6
400.0
639.9
Income tax expense(3)
42.8
0.6
84.5
127.9
Income before equity in income of equity method investments
194.6
2.0
315.5
512.0
Equity in income of equity method investments, net of tax
35.6
-
(22.9)
12.7
Net income
$ 230.2
$ 2.0
$ 292.6
$ 524.7
Net income attributable to noncontrolling interests, net of income tax
(9.3)
-
(1.7)
(11.0)
Adjusted net income attributable to Global Payments
$ 220.9
$ 2.0
$ 290.9
$ 513.8
Diluted shares(4)
300.5
300.5
Adjusted diluted earnings per share(4)
$ 0.74
$ 0.01
$ 0.97
$ 1.71
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. Also, for the three months ended September 30, 2020 includes $2.6 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended September 30, 2020, earnings adjustments to operating income included $317.3 million in Cost of Service (COS) and $107.4 million in Selling, General, & Administrative (SG&A) expenses. Adjustments to COS include $313.4 million of amortization of acquired intangibles and $3.9 million of other items. Adjustments to SG&A include $42.3 million of share-based compensation expense, $59.8 million of acquisition and integration expenses and $5.3 million of other items. Other items included in COS and SG&A include employee termination benefits and other incremental charges directly related to COVID-19. Net income attributable to Global Payments also reflects the removal of a $27.3 million gain associated with the fair value of shares received from the partial conversion of Visa Inc. convertible preferred shares and the removal of $23.1 million of equity method investment earnings from our interest in a private equity investment fund.
(3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
(4) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2020 Q2 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP
SECOND QUARTER CY20
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
June 30, 2020
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 1,672.0
$ (151.1)
$ -
$ 1,520.9
Operating expenses:
Cost of service
893.7
(58.2)
(328.3)
507.2
Selling, general and administrative
670.6
(95.5)
(123.6)
451.5
1,564.4
(153.7)
(452.0)
958.7
Operating income
$ 107.6
$ 2.7
$ 452.0
$ 562.2
Interest and other income
2.8
-
2.0
4.8
Interest and other expense
(82.9)
-
-
(82.9)
(80.1)
-
2.0
(78.1)
Income before income taxes and equity in income of equity method investments
27.5
2.7
454.0
484.1
Income tax expense(3)
0.8
0.5
97.7
99.0
Income before equity in income of equity method investments
26.7
2.2
356.3
385.2
Equity in income of equity method investments, net of tax
12.8
-
0.1
12.9
Net income
$ 39.4
$ 2.2
$ 356.5
$ 398.1
Net income attributable to noncontrolling interests, net of income tax
(2.1)
-
(1.7)
(3.8)
Adjusted net income attributable to Global Payments
$ 37.3
$ 2.2
$ 354.8
$ 394.3
Diluted shares(4)
300.2
300.2
Adjusted diluted earnings per share(4)
$ 0.12
$ 0.01
$ 1.18
$ 1.31
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended June 30, 2020 includes $2.7 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended June 30, 2020, earnings adjustments to operating income included $328.3 million in Cost of Service (COS) and $123.6 million in Selling, General, & Administrative (SG&A) expenses. Adjustments to COS include $314.4 million of amortization of acquired intangibles, $2.9 million of acquisition and integration expenses and $11.0 million of other items. Adjustments to SG&A include $35.0 million of share-based compensation expense, $82.2 million of acquisition and integration expenses and $6.4 million of other items. Other items included in COS and SG&A include employee termination benefits and other incremental charges directly related to COVID-19. Net income attributable to Global Payments also reflects the removal of a $2.0 million loss associated with the partial sale of an ownership position in a strategic partner.
(3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
(4) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2020 Q1 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP
FIRST QUARTER CY20
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
March 31, 2020
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 1,903.6
$ (174.7)
$ -
$ 1,728.9
Operating expenses:
Cost of service
933.9
(64.4)
(320.3)
549.2
Selling, general and administrative
725.7
(113.3)
(107.5)
504.9
1,659.6
(177.6)
(427.8)
1,054.1
Operating income
$ 244.0
$ 2.9
$ 427.8
$ 674.7
Interest and other income
2.5
-
-
2.5
Interest and other expense
(92.6)
-
6.7
(86.0)
(90.1)
-
6.7
(83.5)
Income before income taxes and equity in income of equity method investments
153.8
2.9
434.5
591.3
Income tax expense(3)
15.5
0.5
105.0
121.1
Income before equity in income of equity method investments
138.3
2.4
329.5
470.2
Equity in income of equity method investments, net of tax
12.3
-
0.2
12.4
Net income
$ 150.6
$ 2.4
$ 329.6
$ 482.6
Net income attributable to noncontrolling interests, net of income tax
(7.0)
-
(1.7)
(8.8)
Adjusted net income attributable to Global Payments
$ 143.5
$ 2.4
$ 327.9
$ 473.8
Diluted shares(4)
300.8
300.8
Adjusted diluted earnings per share(4)
$ 0.48
$ 0.01
$ 1.09
$ 1.58
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2020 includes $2.9 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended March 31, 2020, earnings adjustments to operating income included $320.3 million in cost of service (COS) and $107.5 million in selling, general and administrative (SG&A) expenses. Adjustments to COS include $314.8 million of amortization of acquired intangibles and $5.5 million of other items. Adjustments to SG&A include $27.8 million of share-based compensation expense, $71.6 million of acquisition and integration expenses and $8.1 million of other items. Net income attributable to Global Payments also reflects the removal of a $6.7 million loss associated with the partial sale of an ownership position in a strategic partner.
(3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
(4) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
Trended Segment
ADJUSTED EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS (NON-GAAP)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
Calendar Year 2020
Calendar Year 2021
(In millions rounded to nearest hundred thousand, except per share data)
Q1
Q2
Q3
Q4
CY
Q1
Q2
Q3
Q4
CY
Mar 20
Jun 20
Sep 20
Dec 20
2020
Mar 21
Jun 21
Sep 21
Dec 21
2021
Adjusted net revenue:(1)
Merchant Solutions
$ 1,101.3
$ 905.7
$ 1,125.4
$ 1,112.3
$ 4,244.7
$ 1,149.8
$ 1,288.7
$ 1,357.6
$ 1,340.0
$ 5,136.1
Issuer Solutions
442.0
414.2
433.4
457.0
1,746.6
439.4
446.4
457.8
462.9
1,806.4
Business and Consumer Solutions
203.9
216.7
204.1
204.7
829.5
243.6
227.4
207.7
207.8
886.4
Intersegment Elimination
(18.4)
(15.7)
(17.0)
(21.6)
(72.7)
(20.6)
(21.9)
(22.7)
(25.8)
(91.0)
Total adjusted net revenue
$ 1,728.9
$ 1,520.9
$ 1,745.9
$ 1,752.4
$ 6,748.0
$ 1,812.2
$ 1,940.5
$ 2,000.3
$ 1,984.9
$ 7,738.0
Adjusted operating income:(1)
Merchant Solutions
$ 500.4
$ 371.5
$ 532.3
$ 528.1
$ 1,932.3
$ 532.1
$ 624.7
$ 669.5
$ 646.2
$ 2,472.5
Issuer Solutions
174.7
177.1
187.7
204.2
743.7
189.8
196.0
198.5
200.8
785.1
Business and Consumer Solutions
52.5
70.1
52.3
49.4
224.3
80.9
61.2
53.1
45.0
240.2
Corporate
(52.9)
(56.5)
(54.5)
(55.0)
(218.9)
(67.7)
(71.6)
(65.4)
(58.6)
(263.3)
Total adjusted operating income
$ 674.7
$ 562.2
$ 717.7
$ 726.7
$ 2,681.3
$ 735.1
$ 810.2
$ 855.6
$ 833.5
$ 3,234.3
(1) Global Payments supplements revenues and operating income information determined in accordance with U.S. GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this document to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. Management believes adjusted net revenue more closely reflect the economic benefits to the company's core business and allows for better comparisons with industry peers. Management uses these non-GAAP financial measures, together with other metrics, to set goals for and measure the performance of the business and to determine incentive compensation. Adjusted net revenue, adjusted operating income and adjusted operating margin should be considered in addition to, and not as substitutes for, revenues and operating income determined in accordance with GAAP. The non-GAAP financial measures reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.
Note: Amounts may not sum due to rounding.
CY2021 Q4 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP
FOURTH QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three months ended
December 31, 2021
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Combined Non-GAAP
Revenues:
Merchant Solutions
$ 1,475.0
$ (135.1)
$ -
$ 1,340.0
Issuer Solutions
537.6
(74.7)
-
462.9
Business and Consumer Solutions
207.8
-
-
207.8
Intersegment Eliminations
(26.5)
0.7
-
(25.8)
Total
$ 2,194.0
$ (209.1)
$ -
$ 1,984.9
Operating Income
Merchant Solutions
$ 460.3
$ 0.2
$ 185.7
$ 646.2
Issuer Solutions
80.2
0.8
119.8
200.8
Business and Consumer Solutions
28.3
-
16.7
45.0
Corporate
(247.8)
-
189.2
(58.6)
Total
$ 321.0
$ 1.0
$ 511.5
$ 833.5
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended December 31, 2021 includes $1.0 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended December 31, 2021, earnings adjustments to operating income included $321.4 million in cost of services (COS) and $190.0 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $321.1 million and other items of $0.3 million. Adjustments to SG&A include share-based compensation expense of $34.7 million, acquisition and integration expenses of $98.6 million, facilities exit charges of $56.8 million and other items of $(0.1) million.
Note: Amounts may not sum due to rounding.
CY2021 Q3 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP
THIRD QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three months ended
September 30, 2021
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Combined Non-GAAP
Revenues:
Merchant Solutions
$ 1,495.9
$ (138.3)
$ -
$ 1,357.6
Issuer Solutions
522.2
(64.4)
-
457.8
Business and Consumer Solutions
207.7
-
-
207.7
Intersegment Eliminations
(23.4)
0.7
-
(22.7)
Total
$ 2,202.3
$ (202.0)
-
$ 2,000.3
Operating Income
Merchant Solutions
$ 488.4
$ 0.1
$ 181.0
$ 669.5
Issuer Solutions
77.7
0.9
119.9
198.5
Business and Consumer Solutions
35.2
-
17.9
53.1
Corporate
(201.2)
-
135.8
(65.4)
Total
$ 400.1
$ 1.0
$ 454.5
$ 855.6
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended September 30, 2021 includes $1.0 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended September 30, 2021, earnings adjustments to operating income included $317.8 million in cost of services (COS) and $136.7 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $319.9 million and other items of $(2.1) million. Adjustments to SG&A include share-based compensation expense of $65.6 million, acquisition and integration expenses of $71.6 million and other items of $(0.5) million.
Note: Amounts may not sum due to rounding.
CY2021 Q2 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP
SECOND QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three months ended
June 30, 2021
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Combined Non-GAAP
Revenues:
Merchant Solutions
$ 1,426.8
$ (138.0)
$ -
$ 1,288.7
Issuer Solutions
505.9
(59.5)
-
446.4
Business and Consumer Solutions
227.4
-
-
227.4
Intersegment Eliminations
(22.6)
0.7
-
(21.9)
Total
$ 2,137.4
$ (196.9)
-
$ 1,940.5
Operating Income
Merchant Solutions
$ 437.3
$ 0.1
$ 187.2
$ 624.7
Issuer Solutions
74.8
1.1
120.0
196.0
Business and Consumer Solutions
42.3
-
18.9
61.2
Corporate
(191.8)
-
120.2
(71.6)
Total
$ 362.6
$ 1.3
$ 446.4
$ 810.2
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended June 30, 2021 includes $1.3 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended June 30, 2021, earnings adjustments to operating income include $324.7 million in cost of services (COS) and $121.6 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $324.7 million. Adjustments to SG&A include share-based compensation expense of $43.3 million and acquisition and integration expenses of $78.3 million.
Note: Amounts may not sum due to rounding.
CY2021 Q1 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP
FIRST QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three months ended
March 31, 2021
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Combined Non-GAAP
Revenues:
Merchant Solutions
$ 1,267.9
$ (118.1)
$ -
$ 1,149.8
Issuer Solutions
500.3
(60.9)
-
439.4
Business and Consumer Solutions
243.6
-
-
243.6
Intersegment Eliminations
(21.7)
1.1
-
(20.6)
Total
$ 1,990.0
$ (177.8)
-
$ 1,812.2
Operating Income
Merchant Solutions
$ 340.0
$ 0.3
$ 191.9
$ 532.1
Issuer Solutions
68.5
1.5
119.9
189.8
Business and Consumer Solutions
61.9
-
18.9
80.9
Corporate
(195.1)
-
127.4
(67.7)
Total
$ 275.3
$ 1.7
458.1
$ 735.1
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2021 includes $1.7 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended March 31, 2021, earnings adjustments to operating income include $329.2 million in cost of services (COS) and $128.9 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $329.2 million. Adjustments to SG&A include share-based compensation expense of $37.2 million and acquisition and integration expenses of $91.7 million.
Note: Amounts may not sum due to rounding.
CY2020 Segment Reconciliation
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP
Calendar Year 2020
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Twelve months ended
December 31, 2020
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Combined Non-GAAP
Revenues:
Merchant Solutions
$ 4,688.3
$ (443.7)
$ -
$ 4,244.7
Issuer Solutions
1,981.4
(234.9)
-
1,746.6
Business and Consumer Solutions
829.5
-
-
829.5
Intersegment Eliminations
75.7
3.0
-
(72.7)
Total
$ 7,423.6
$ (675.5)
-
$ 6,784.0
Operating Income
Merchant Solutions
$ 1,162.7
$ 1.2
$ 768.3
$ 1,932.3
Issuer Solutions
277.7
9.3
456.7
743.7
Business and Consumer Solutions
138.6
-
85.6
224.3
Corporate
(685.1)
-
466.2
(218.9)
Total
$ 894.0
$ 10.5
1,776.8
$ 2,681.3
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. Also, for the twelve months ended December 31, 2020 includes $10.5 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the year ended December 31, 2020, earnings adjustments to operating income include $1,283.3 million in COS and $493.5 million in SG&A. Adjustments to COS include amortization of acquired intangibles of $1,257.8 million and $25.5 million of other items. Adjustments to SG&A include share-based compensation expense of $148.8 million, acquisition and integration expenses of $319.5 million and $25.2 million of other items. Other items included in COS and SG&A include employee termination benefits and other incremental charges directly related to COVID-19. Net income attributable to Global Payments also reflects the removal of a $27.7 million gain associated with the fair value of common shares received from the conversion of certain Visa Inc. preferred shares, the removal of $33.9 million of equity method investment earnings from our interest in a private equity investment fund, and the removal of a $8.7 million loss associated with the partial sale of an ownership position in a strategic partner.
Note: Amounts may not sum due to rounding.
CY2020 Q4 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP
FOURTH QUARTER CY20
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
December 31, 2020
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Combined Non-GAAP
Revenues:
Merchant Solutions
$ 1,227.6
$ (115.3)
$ -
$ 1,112.3
Issuer Solutions
520.2
(63.2)
-
457.0
Business and Consumer Solutions
204.7
-
-
204.7
Intersegment Eliminations
(22.3)
0.7
-
(21.6)
Total
$ 1,930.2
$ (177.8)
$ -
$ 1,752.4
Operating Income
Merchant Solutions
$ 338.5
$ 0.4
$ 189.2
$ 528.1
Issuer Solutions
89.5
2.0
112.7
204.2
Business and Consumer Solutions
28.3
-
21.2
49.4
Intersegment Eliminations
(204.3)
-
149.4
(55.0)
Total
$ 252.0
$ 2.4
$ 472.4
$ 726.7
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the Company. For the three months ended December 31, 2020 includes $2.4 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended December 31, 2020, earnings adjustments to operating income include $317.4 million in cost of services (COS) and $154.9 million in selling, general and administrative expenses (SG&A). Adjustments to COS include amortization of acquired intangibles of $315.3 million and $2.1 million of other items. Adjustments to SG&A include share-based compensation expense of $43.7 million, acquisition and integration expenses of $105.8 million and $5.4 million of other items. Other items included in COS and SG&A include employee termination benefits and other incremental charges directly related to COVID-19.
Note: Amounts may not sum due to rounding.
CY2020 Q3 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP
THIRD QUARTER CY20
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
September 30, 2020
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Combined Non-GAAP
Revenues:
Merchant Solutions
$ 1,244.0
$ (118.6)
$ -
$ 1,125.4
Issuer Solutions
487.4
(54.0)
-
433.4
Business and Consumer Solutions
204.1
-
-
204.1
Intersegment Eliminations
(17.7)
0.7
-
(17.0)
Total
$ 1,917.8
$ (171.9)
$ -
$ 1,745.9
Operating Income
Merchant Solutions
$ 345.0
$ 0.3
$ 187.0
$ 532.3
Issuer Solutions
70.8
2.2
114.6
187.7
Business and Consumer Solutions
31.1
-
21.2
52.3
Corporate
(156.4)
-
101.9
(54.5)
Total
$ 290.4
$ 2.6
$ 424.7
$ 717.7
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended September 30, 2020 includes $2.6 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended September 30, 2020, earnings adjustments to operating income included $317.3 million in Cost of Service (COS) and $107.4 million in Selling, General, & Administrative (SG&A) expenses. Adjustments to COS include $313.4 million of amortization of acquired intangibles and $3.9 million of other items. Adjustments to SG&A include $42.3 million of share-based compensation expense, $59.8 million of acquisition and integration expenses and $5.3 million of other items. Other items included in COS and SG&A include employee termination benefits and other incremental charges directly related to COVID-19.
Note: Amounts may not sum due to rounding.
CY2020 Q2 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP
SECOND QUARTER CY20
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
June 30, 2020
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Combined Non-GAAP
Revenues:
Merchant Solutions
$ 1,001.6
$ (95.9)
$ -
$ 905.7
Issuer Solutions
470.0
(55.8)
-
414.2
Business and Consumer Solutions
216.7
-
-
216.7
Intersegment Eliminations
(16.4)
0.7
-
(15.7)
Total
$ 1,672.0
$ (151.1)
-
$ 1,520.9
Operating Income
Merchant Solutions
$ 175.1
$ 0.3
$ 196.1
$ 371.5
Issuer Solutions
58.0
2.4
116.7
177.1
Business and Consumer Solutions
48.2
-
21.9
70.1
Corporate
(173.7)
-
117.3
(56.5)
Total
$ 107.6
$ 2.7
$ 452.0
$ 562.2
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended June 30, 2020 includes $2.7 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended June 30, 2020, earnings adjustments to operating income included $328.3 million in Cost of Service (COS) and $123.6 million in Selling, General, & Administrative (SG&A) expenses. Adjustments to COS include $314.4 million of amortization of acquired intangibles, $2.9 million of acquisition and integration expenses and $11.0 million of other items. Adjustments to SG&A include $35.0 million of share-based compensation expense, $82.2 million of acquisition and integration expenses and $6.4 million of other items. Other items included in COS and SG&A include employee termination benefits and other incremental charges directly related to COVID-19.
Note: Amounts may not sum due to rounding.
CY2020 Q1 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP
FIRST QUARTER CY20
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
March 31, 2020
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Combined Non-GAAP
Revenues:
Merchant Solutions
$ 1,215.3
$ (113.9)
$ -
$ 1,101.3
Issuer Solutions
503.8
(61.8)
-
442.0
Business and Consumer Solutions
203.9
-
-
203.9
Intersegment Eliminations
(19.4)
1.0
-
(18.4)
Total
$ 1,903.6
$ (174.7)
$ -
$ 1,728.9
Operating Income
Merchant Solutions
$ 304.2
$ 0.2
$ 196.0
$ 500.4
Issuer Solutions
59.3
2.7
112.7
174.7
Business and Consumer Solutions
31.1
-
21.4
52.5
Corporate
(150.6)
-
97.7
(52.9)
Total
$ 244.0
$ 2.9
$ 427.8
$ 674.7
(1) Represents adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2020 includes $2.9 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended March 31, 2020, earnings adjustments to operating income included $320.3 million in cost of service (COS) and $107.5 million in selling, general and administrative (SG&A) expenses. Adjustments to COS include $314.8 million of amortization of acquired intangibles and $5.5 million of other items. Adjustments to SG&A include $27.8 million of share-based compensation expense, $71.6 million of acquisition and integration expenses and $8.1 million of other items.
Note: Amounts may not sum due to rounding.
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Global Payments Inc. published this content on 10 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2022 12:32:03 UTC.
Global Payments Inc. specializes in the design and development of payment solutions and services. The group serves merchants, e-commerce companies, financial institutions and gaming operators with integrated solutions for payment processing acceptance and payment cards transactions (credit cards, debit cards, online payment cards, prepaid cards, etc.) through all sales channels (Internet, mobile phone and retail outlets).
Net sales are distributed geographically as follows: Americas (81.4%), Europe (15.9%) and Asia/Pacific (2.7%).