gpn-20210630

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 June 30, 2021


☐						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

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	Trading 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

☐

☑

The number of shares of the issuer’s common stock, no par value, outstanding as of July 28, 2021 was 293,748,093.

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GLOBAL PAYMENTS INC.

FORM 10-Q

For the quarterly period ended June 30, 2021

TABLE OF CONTENTS


		Page
PART I - FINANCIAL INFORMATION
ITEM 1.	Unaudited Consolidated Statements of Income for the three and six months ended June 30, 2021 and 2020	3
	Unaudited Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2021 and 2020	5
	Consolidated Balance Sheets at June 3 0 , 2021 (unaudited) and December 31, 2020	6
	Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020	7
	Unaudited Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2021 and 2020	8
	Notes to Unaudited Consolidated Financial Statements	10
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	25
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	35
ITEM 4.	Controls and Procedures	36
PART II - OTHER INFORMATION
ITEM 1.	Legal Proceedings	37
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
ITEM 6.	Exhibits	38
	Signatures	39

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PART I - FINANCIAL INFORMATION

ITEM 1—FINANCIAL STATEMENTS

GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)


	Three Months Ended
	June 30, 2021		June 30, 2020

Revenues	$	2,137,437	$	1,671,952
Operating expenses:
Cost of service	936,310		893,740
Selling, general and administrative	838,569		670,638
	1,774,879		1,564,378
Operating income	362,558		107,574

Interest and other income	5,455		2,787
Interest and other expense	(80,556)		(82,855)
	(75,101)		(80,068)
Income before income taxes and equity in income of equity method investments	287,457		27,506
Income tax expense	60,808		836
Income before equity in income of equity method investments	226,649		26,670
Equity in income of equity method investments, net of tax	40,164		12,774
Net income	266,813		39,444
Net income attributable to noncontrolling interests, net of tax	(3,223)		(2,113)
Net income attributable to Global Payments	$	263,590	$	37,331

Earnings per share attributable to Global Payments:
Basic earnings per share	$	0.89	$	0.12
Diluted earnings per share	$	0.89	$	0.12

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)


	Six Months Ended
	June 30, 2021		June 30, 2020

Revenues	$	4,127,444	$	3,575,550
Operating expenses:
Cost of service	1,861,556		1,827,611
Selling, general and administrative	1,628,071		1,396,386
	3,489,627		3,223,997
Operating income	637,817		351,553

Interest and other income	9,689		5,293
Interest and other expense	(163,697)		(175,499)
	(154,008)		(170,206)
Income before income taxes and equity in income of equity method investments	483,809		181,347
Income tax expense	81,483		16,338
Income before equity in income of equity method investments	402,326		165,009
Equity in income of equity method investments, net of tax	62,897		25,041
Net income	465,223		190,050
Net income attributable to noncontrolling interests, net of tax	(4,952)		(9,147)
Net income attributable to Global Payments	$	460,271	$	180,903

Earnings per share attributable to Global Payments:
Basic earnings per share	$	1.56	$	0.60
Diluted earnings per share	$	1.55	$	0.60

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)


	Three Months Ended
	June 30, 2021		June 30, 2020

Net income	$	266,813	$	39,444
Other comprehensive income (loss):
Foreign currency translation adjustments	32,671		82,458
Income tax benefit related to foreign currency translation adjustments	4,242		154
Net unrealized losses on hedging activities	(410)		(5,630)
Reclassification of net unrealized losses on hedging activities to interest expense	9,662		9,982
Income tax expense related to hedging activities	(2,225)		(1,057)
Other, net of tax	(1,549)		122
Other comprehensive income	42,391		86,029

Comprehensive income	309,204		125,473
Comprehensive income attributable to noncontrolling interests	(5,948)		(7,508)
Comprehensive income attributable to Global Payments	$	303,256	$	117,965


	Six Months Ended
	June 30, 2021		June 30, 2020

Net income	$	465,223	$	190,050
Other comprehensive income (loss):
Foreign currency translation adjustments	(895)		(121,653)
Income tax benefit related to foreign currency translation adjustments	4,991		1,160
Net unrealized gains (losses) on hedging activities	584		(53,526)
Reclassification of net unrealized losses on hedging activities to interest expense	20,500		14,653
Income tax (expense) benefit related to hedging activities	(5,089)		9,289
Other, net of tax	6,226		243
Other comprehensive income (loss)	26,317		(149,834)

Comprehensive income	491,540		40,216
Comprehensive income attributable to noncontrolling interests	(1,703)		(7,888)
Comprehensive income attributable to Global Payments	$	489,837	$	32,328

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)


	June 30, 2021		December 31, 2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,799,549	$	1,945,868
Accounts receivable, net	878,431		794,172
Settlement processing assets	1,548,743		1,230,853
Prepaid expenses and other current assets	673,154		621,467
Total current assets	4,899,877		4,592,360
Goodwill	24,422,012		23,871,451
Other intangible assets, net	11,815,103		12,015,883
Property and equipment, net	1,642,283		1,578,532
Deferred income taxes	8,094		7,627
Other noncurrent assets	2,362,304		2,135,692
Total assets	$	45,149,673	$	44,201,545
LIABILITIES AND EQUITY
Current liabilities:
Settlement lines of credit	$	487,538	$	358,698
Current portion of long-term debt	52,611		827,357
Accounts payable and accrued liabilities	2,184,201		2,061,384
Settlement processing obligations	1,655,278		1,301,652
Total current liabilities	4,379,628		4,549,091
Long-term debt	10,216,979		8,466,407
Deferred income taxes	2,873,676		2,948,390
Other noncurrent liabilities	829,250		750,613
Total liabilities	18,299,533		16,714,501
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 June 30, 2021 and December 31, 2020; 293,702,910 issued and outstanding at June 30, 2021 and 298,332,459 issued and outstanding at December 31, 2020	—		—
Paid-in capital	24,201,763		24,963,769
Retained earnings	2,664,707		2,570,874
Accumulated other comprehensive loss	(172,707)		(202,273)
Total Global Payments shareholders’ equity	26,693,763		27,332,370
Noncontrolling interests	156,377		154,674
Total equity	26,850,140		27,487,044
Total liabilities and equity	$	45,149,673	$	44,201,545

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


	Six Months Ended
	June 30, 2021		June 30, 2020
Cash flows from operating activities:
Net income	$	465,223	$	190,050
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	193,574		172,229
Amortization of acquired intangibles	654,042		628,264
Amortization of capitalized contract costs	43,975		38,070
Share-based compensation expense	80,490		62,805
Provision for operating losses and credit losses	50,802		66,921
Noncash lease expense	54,533		47,770
Deferred income taxes	(91,177)		(96,458)
Equity in income of equity investments, net of tax	(62,897)		(25,041)
Other, net	13,965		10,823
Changes in operating assets and liabilities, net of the effects of business combinations:
Accounts receivable	(91,580)		56,186
Settlement processing assets and obligations, net	25,312		136,453
Prepaid expenses and other assets	(151,353)		(97,653)
Accounts payable and other liabilities	(75,268)		(230,130)
Net cash provided by operating activities	1,109,641		960,289
Cash flows from investing activities:
Business combinations and other acquisitions, net of cash acquired	(943,108)		(74,095)
Capital expenditures	(219,579)		(208,384)
Other, net	742		12,188
Net cash used in investing activities	(1,161,945)		(270,291)
Cash flows from financing activities:
Net borrowings from (repayments of) settlement lines of credit	134,245		(25,546)
Proceeds from long-term debt	2,820,988		1,867,008
Repayments of long-term debt	(1,830,258)		(1,809,199)
Payments of debt issuance costs	(8,569)		(8,006)
Repurchases of common stock	(1,072,934)		(421,162)
Proceeds from stock issued under share-based compensation plans	29,304		42,632
Common stock repurchased - share-based compensation plans	(49,664)		(39,226)
Dividends paid	(114,875)		(116,591)
Net cash used in financing activities	(91,763)		(510,090)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(5,980)		(32,556)
(Decrease) increase in cash, cash equivalents and restricted cash	(150,047)		147,352
Cash, cash equivalents and restricted cash, beginning of the period	2,089,771		1,678,273
Cash, cash equivalents and restricted cash, end of the period	$	1,939,724	$	1,825,625

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands, except per share data)


	Number of Shares	Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Global Payments Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance at March 31, 2021	295,158	$	24,403,323	$	2,500,812	$	(212,373)	$	26,691,762	$	150,429	$	26,842,191
Net income				263,590				263,590		3,223		266,813
Other comprehensive income						39,666		39,666		2,725		42,391
Stock issued under share-based compensation plans	78	11,599						11,599				11,599
Common stock repurchased - share-based compensation plans	(31)	(8,900)						(8,900)				(8,900)
Share-based compensation expense		43,325						43,325				43,325
Repurchases of common stock	(1,502)	(247,584)		(42,393)				(289,977)				(289,977)
Cash dividends declared ($0.195 per common share)				(57,302)				(57,302)				(57,302)
Balance at June 30, 2021	293,703	$	24,201,763	$	2,664,707	$	(172,707)	$	26,693,763	$	156,377	$	26,850,140


	Number of Shares	Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Global Payments Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance at March 31, 2020	299,010	$	25,525,184	$	2,335,407	$	(539,780)	$	27,320,811	$	199,622	$	27,520,433
Net income				37,331				37,331		2,113		39,444
Other comprehensive income						80,634		80,634		5,395		86,029
Stock issued under share-based compensation plans	257	14,349						14,349				14,349
Common stock repurchased - share-based compensation plans	(23)	(3,934)						(3,934)				(3,934)
Share-based compensation expense		34,983						34,983				34,983
Cash dividends declared ($0.195 per common share)				(58,315)				(58,315)				(58,315)
Balance at June 30, 2020	299,244	$	25,570,582	$	2,314,423	$	(459,146)	$	27,425,859	$	207,130	$	27,632,989

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands, except per share data)


	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, 2020	298,332	$	24,963,769	$	2,570,874	$	(202,273)	$	27,332,370	$	154,674	$	27,487,044
Net income				460,271				460,271		4,952		465,223
Other comprehensive income (loss)						29,566		29,566		(3,249)		26,317
Stock issued under share-based compensation plans	1,081	29,304						29,304				29,304
Common stock repurchased - share-based compensation plans	(253)	(50,429)						(50,429)				(50,429)
Share-based compensation expense		80,490						80,490				80,490
Repurchases of common stock	(5,457)	(821,371)		(251,563)				(1,072,934)				(1,072,934)
Cash dividends declared ($0.39 per common share)				(114,875)				(114,875)				(114,875)
Balance at June 30, 2021	293,703	$	24,201,763	$	2,664,707	$	(172,707)	$	26,693,763	$	156,377	$	26,850,140


	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, 2019	300,226	$	25,833,307	$	2,333,011	$	(310,571)	$	27,855,747	$	199,242	$	28,054,989
Cumulative effect of adoption of new accounting standard				(5,379)				(5,379)				(5,379)
Net income				180,903				180,903		9,147		190,050
Other comprehensive loss						(148,575)		(148,575)		(1,259)		(149,834)
Stock issued under share-based compensation plans	1,339	42,632						42,632				42,632
Common stock repurchased - share-based compensation plans	(226)	(41,721)						(41,721)				(41,721)
Share-based compensation expense		62,805						62,805				62,805
Repurchase of common stock	(2,095)	(326,441)		(77,521)				(403,962)				(403,962)
Cash dividends declared ($0.39 per common share)				(116,591)				(116,591)				(116,591)
Balance at June 30, 2020	299,244	$	25,570,582	$	2,314,423	$	(459,146)	$	27,425,859	$	207,130	$	27,632,989

See Notes to Unaudited Consolidated Financial Statements.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business, consolidation and presentation - We are a leading payments technology company delivering innovative software and services to our customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world. We operate in three reportable segments: Merchant Solutions, Issuer Solutions and Business and Consumer Solutions, which are described in "Note 12—Segment Information." Global Payments Inc. and its consolidated subsidiaries are referred to herein collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise.

These unaudited consolidated financial statements include our accounts and those of our majority-owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated balance sheet as of December 31, 2020 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 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, 2020.

COVID-19 Update - Since early 2020, the global economy has been, and continues to be, affected by COVID-19. The pandemic has caused and may continue to cause significant disruptions to businesses and markets worldwide as the virus spreads or has a resurgence in certain jurisdictions. Measures have been implemented by governments worldwide in an effort to contain the virus, including lockdowns, physical distancing, travel restrictions, limitations on public gatherings, work from home and restrictions on nonessential businesses. Certain government actions to gradually ease restrictions, provide economic stimulus and distribute vaccines have resulted in signs of economic recovery. However, the effects of the pandemic continue, and its ultimate severity and duration, and the implications on future global economic conditions, remain uncertain.

Use of estimates - The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. In particular, the future magnitude, duration and effects of the COVID-19 pandemic are difficult to predict at this time, and the ultimate effect could result in additional charges related to the recoverability of assets, including financial assets, long-lived assets and goodwill and other losses. These unaudited consolidated financial statements reflect the financial statement effects of COVID-19 based upon management’s estimates and assumptions utilizing the most currently available information.

Recently adopted accounting pronouncements

Accounting Standards Update ("ASU") 2019-12 — In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which is intended to enhance and simplify various aspects of the accounting for income taxes. The amendments in this update remove certain exceptions to the general principles in Accounting Standards Codification ("ASC") Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and amends existing guidance to improve consistency in application of the accounting for franchise taxes, enacted changes in tax laws or rates and transactions that result in a step-up in the tax basis of goodwill. The adoption of ASU 2019-12 on January 1, 2021 did not have a material effect on our consolidated financial statements.

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Recently issued pronouncements not yet adopted

ASU 2020-04 — In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which provides optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference London Inter-bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients and which are retained through the end of the hedging relationship. The amendments in this update also include a general principle that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. If elected, the optional expedients for contract modifications must be applied consistently for all eligible contracts or eligible transactions within the relevant ASC Topic or Industry Subtopic that contains the guidance that otherwise would be required to be applied. The amendments in this update were effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. A portion of our indebtedness bears interest at a variable rate based on LIBOR. Furthermore, we have entered into hedging instruments to manage our exposure to fluctuations in the LIBOR benchmark interest rate. We are evaluating the effect of the discontinuance of LIBOR on our outstanding debt and hedging instruments and the related effect of ASU 2020-04 on our consolidated financial statements.

NOTE 2—ACQUISITION

On June 10, 2021, we acquired Zego, a real estate technology company that provides a comprehensive resident experience management software and digital commerce solutions to property managers, primarily in the United States. Zego’s real estate software and payments solutions support property managers and residents throughout the real estate lifecycle. This acquisition aligns with our technology-enabled, software driven strategy and expands our business into a new vertical market. We paid cash consideration of approximately $933 million, which we funded with cash on hand and by drawing on our revolving credit facility.

This transaction was accounted for as a business combination, which generally requires that we record the assets acquired and liabilities assumed at fair value as of the acquisition date. Due to the timing of the acquisition, the accounting for this acquisition was not complete as of June 30, 2021. The fair values of the assets acquired and the liabilities assumed have been determined provisionally and are subject to adjustment as we obtain additional information. In particular, additional time is needed to refine and review the results of the valuation of assets and liabilities and to evaluate the basis differences for assets and liabilities for financial reporting and tax purposes.

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The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, are as follows (in thousands):


Cash and cash equivalents	$	67,374
Accounts receivable	1,033
Identifiable intangible assets	410,443
Property and equipment	3,634
Other assets	9,141
Accounts payable and accrued liabilities	(65,753)
Deferred income tax liabilities	(10,709)
Other liabilities	(8,268)
Total identifiable net assets	406,895
Goodwill	525,929
Total purchase consideration	$	932,824

Goodwill of $525.9 million arising from the acquisition, included in the Merchant Solutions operating segment, is attributable to expected growth opportunities, potential synergies from combining our existing businesses and an assembled workforce. We expect that a portion of the goodwill will be deductible for income tax purposes.

We are still evaluating information to separately identify and value the intangible assets acquired. We expect such assets to primarily include customer-related intangible assets and acquired technology as well as other identifiable intangible assets that are similar to those we have identified in previous acquisitions. We estimate the amortization periods for the more significant intangible assets to be in a range of 7 to 14 years.

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NOTE 3—REVENUES

The following tables present a disaggregation of our revenues from contracts with customers by geography for each of our reportable segments for the three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30, 2021
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	1,202,970	$	379,121	$	224,529	$	(16,768)	$	1,789,852
Europe	166,644		120,974		2,826		—		290,444
Asia Pacific	57,141		5,837		—		(5,837)		57,141
	$	1,426,755	$	505,932	$	227,355	$	(22,605)	$	2,137,437


	Three Months Ended June 30, 2020
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	862,927	$	363,140	$	216,722	$	(14,728)	$	1,428,061
Europe	102,460		105,263		—		—		207,723
Asia Pacific	36,168		1,622		—		(1,622)		36,168
	$	1,001,555	$	470,025	$	216,722	$	(16,350)	$	1,671,952


	Six Months Ended June 30, 2021
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	2,283,440	$	757,164	$	465,163	$	(33,673)	$	3,472,094
Europe	299,578		238,386		5,778		—		543,742
Asia Pacific	111,609		10,633		—		(10,634)		111,608
	$	2,694,627	$	1,006,183	$	470,941	$	(44,307)	$	4,127,444


	Six Months Ended June 30, 2020
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	1,887,433	$	756,893	$	420,668	$	(32,461)	$	3,032,533
Europe	238,459		213,626		—		—		452,085
Asia Pacific	90,932		3,268		—		(3,268)		90,932
	$	2,216,824	$	973,787	$	420,668	$	(35,729)	$	3,575,550

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The following table presents a disaggregation of our Merchant Solutions segment revenues by distribution channel for the three and six months ended June 30, 2021 and 2020:


	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020

	(in thousands)

Relationship-led	$	778,978	$	566,414	$	1,445,890	$	1,242,935
Technology-enabled	647,777		435,141		1,248,737		973,889
	$	1,426,755	$	1,001,555	$	2,694,627	$	2,216,824

ASC Topic 606, Revenues from Contracts with Customers ("ASC 606"), requires that we determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the three and six months ended June 30, 2021 and 2020, substantially all of our revenues were recognized over time.

Supplemental balance sheet information related to contracts from customers as of June 30, 2021 and December 31, 2020 was as follows:


	Balance Sheet Location	June 30, 2021		December 31, 2020

		(in thousands)

Assets:
Capitalized costs to obtain customer contracts, net	Other noncurrent assets	$	270,143	$	253,780
Capitalized costs to fulfill customer contracts, net	Other noncurrent assets	99,640		81,371

Liabilities:
Contract liabilities, net (current)	Accounts payable and accrued liabilities	216,331		217,938
Contract liabilities, net (noncurrent)	Other noncurrent liabilities	49,610		52,944

Net contract assets were not material at June 30, 2021 or at December 31, 2020. Revenue recognized for the three months ended June 30, 2021 and 2020 from contract liability balances at the beginning of each period was $85.0 million and $86.7 million, respectively. Revenue recognized for the six months ended June 30, 2021 and 2020 from contract liability balances at the beginning of each period was $146.6 million and $159.9 million, respectively.

ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations. The purpose of this disclosure is to provide additional information about the amounts and expected timing of revenue to be recognized from the remaining performance obligations in our existing contracts. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at June 30, 2021. However, as permitted, we have elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. Accordingly, the total amount of unsatisfied or partially unsatisfied performance obligations related to processing services is significantly higher than the amounts disclosed in the table below (in thousands):

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Year Ending December 31,

2021	$	502,058
2022	845,561
2023	627,756
2024	450,703
2025	354,058
2026	280,326
2027 and thereafter	446,815
Total	$	3,507,277

NOTE 4—GOODWILL AND OTHER INTANGIBLE ASSETS

As of June 30, 2021 and December 31, 2020, goodwill and other intangible assets consisted of the following:


	June 30, 2021		December 31, 2020

	(in thousands)

Goodwill	$	24,422,012	$	23,871,451
Other intangible assets:
Customer-related intangible assets	$	9,476,680	$	9,275,093
Acquired technologies	2,975,966		2,795,991
Contract-based intangible assets	2,003,166		1,981,260
Trademarks and trade names	1,286,627		1,239,925
	15,742,439		15,292,269
Less accumulated amortization:
Customer-related intangible assets	2,257,116		1,914,214
Acquired technologies	1,169,394		960,281
Contract-based intangible assets	151,556		120,631
Trademarks and trade names	349,270		281,260
	3,927,336		3,276,386
	$	11,815,103	$	12,015,883

The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the six months ended June 30, 2021:


	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Total

	(in thousands)
Balance at December 31, 2020	$	13,548,690	$	7,957,616	$	2,365,145	$	23,871,451
Goodwill acquired	563,232		—		—		563,232
Effect of foreign currency translation	(9,669)		2,907		(707)		(7,469)
Measurement period adjustments	(5,202)		—		—		(5,202)
Balance at June 30, 2021	$	14,097,051	$	7,960,523	$	2,364,438	$	24,422,012

There were no accumulated impairment losses for goodwill as of June 30, 2021 or December 31, 2020.

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NOTE 5—LONG-TERM DEBT AND LINES OF CREDIT

As of June 30, 2021 and December 31, 2020, long-term debt consisted of the following:


	June 30, 2021		December 31, 2020

	(in thousands)

3.800% senior notes due April 1, 2021	$	—	$	752,199
3.750% senior notes due June 1, 2023	559,722		562,258
4.000% senior notes due June 1, 2023	562,634		565,930
2.650% senior notes due February 15, 2025	993,954		993,110
1.200% senior notes due March 1, 2026	1,091,057		—
4.800% senior notes due April 1, 2026	803,674		809,324
4.450% senior notes due June 1, 2028	480,391		482,588
3.200% senior notes due August 15, 2029	1,237,215		1,236,424
2.900% senior notes due May 15, 2030	989,611		989,025
4.150% senior notes due August 15, 2049	739,967		739,789
Unsecured term loan facility	1,987,785		1,985,776
Unsecured revolving credit facility	717,000		36,000
Finance lease liabilities	72,539		75,989
Other borrowings	34,041		65,352
Total long-term debt	10,269,590		9,293,764
Less current portion	52,611		827,357
Long-term debt, excluding current portion	$	10,216,979	$	8,466,407

The carrying amounts of our senior notes and term loan in the table above are presented net of unamortized discount and unamortized debt issuance costs, as applicable. At June 30, 2021, unamortized discount on senior notes was $9.0 million, and unamortized debt issuance costs on senior notes and the unsecured term loan facility were $51.4 million. At December 31, 2020, unamortized discount on senior notes was $8.5 million, and unamortized debt issuance costs on our senior notes and the unsecured term loan facility were $47.4 million. The portion of unamortized debt issuance costs related to revolving credit facilities is included in other noncurrent assets. At June 30, 2021, unamortized debt issuance costs on the unsecured revolving credit facility were $11.7 million, and, at December 31, 2020, unamortized debt issuance costs on the unsecured revolving credit facility were $13.8 million.