Global Payments Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Global Payments Inc. has submitted its 2023 annual report (10-K), detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

GLOBAL PAYMENTS INC (GPN) filed a Annual Report (10-K) with the SEC on February 14, 2024. Global Payments Inc. filed its 2023 Form 10-K on February 14, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Georgia (GA). Its primary business is classified under SERVICES-BUSINESS SERVICES, NEC [7389]. The filing includes financial data for the fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking GLOBAL PAYMENTS INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Global Payments Inc.'s financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors and stakeholders to assess the company's standing. The detailed financial statements and risk factors within the report offer insights into the company's revenue streams, debt levels, and potential challenges, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — GLOBAL PAYMENTS INC shows moderate risk based on this filing. The company operates in the financial services sector, which is subject to significant regulatory oversight and market competition, as indicated by its business classification and the nature of its operations.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Global Payments Inc.'s performance and outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-14 — Filing Date (Date of submission)
• 001-16111 — SEC File Number (Company's SEC file number)
• 0001123360-24-000004 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• GLOBAL PAYMENTS INC (company) — Filer name
• GPN (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-14 (date) — Filing date
• 7389 (industry_code) — Standard Industrial Classification
• GA (location) — State of incorporation
• 30326 (zip_code) — Business address zip code
• 7708298030 (phone_number) — Business phone number

FAQ

Industry Context

Global Payments Inc. operates in the business services sector, specifically within payment processing and related financial technologies.

Regulatory Implications

As a financial services company, Global Payments Inc. is subject to various regulations governing payment processing, data security, and consumer protection.

What Investors Should Do

1. Analyze the financial statements for revenue trends and profitability.
2. Assess the company's debt structure and leverage ratios.
3. Review any disclosed risk factors for potential impacts on future performance.

Key Dates

• 2024-02-14: 10-K Filing — Submission of the annual report for fiscal year 2023.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing; comparative data from previous filings will be incorporated as available.

Key Financial Figures

• $4 billion — purchase consideration of approximately $4 billion. EVO is a payment technology and servic
• $1 billion — our Netspend business for approximately $1 billion. The disposition further aligns our bus
• $400 million — f our gaming business for approximately $400 million. The disposition further aligns our bus
• $100.00 — wn below in the sponsorship model, on a $100.00 card transaction the card issuer may fu
• $98.50 — , (indirectly through the card network) $98.50 after retaining $1.50 referred to as an
• $1.50 — he card network) $98.50 after retaining $1.50 referred to as an interchange fee. The
• $2.00 — ove example is 2%, we bill the merchant $2.00 after the end of the month for the tran
• $0.50 — or $1.50 in interchange fees and retain $0.50 as our fee for the transaction. Under s
• $98.00 — rrangements, we remit the net amount of $98.00 to the merchant, rather than funding th

Filing Documents

• gpn-20231231.htm (10-K) — 2562KB
• ex47descriptionofregistran.htm (EX-4.7) — 21KB
• ex1021carterandreaemployme.htm (EX-10.21) — 193KB
• ex211listofsubsidiaries123.htm (EX-21.1) — 16KB
• ex231consent12312023.htm (EX-23.1) — 2KB
• ex241powerofattorney123120.htm (EX-24.1) — 12KB
• ex31112312023.htm (EX-31.1) — 12KB
• ex31212312023.htm (EX-31.2) — 12KB
• ex32112312023.htm (EX-32.1) — 7KB
• ex97nyseclawbackpolicy.htm (EX-97) — 41KB
• gpn-20231231_g1.jpg (GRAPHIC) — 1162KB
• gpn-20231231_g2.jpg (GRAPHIC) — 104KB
• gpn-20231231_g3.jpg (GRAPHIC) — 24KB
• 0001123360-24-000004.txt (&nbsp;) — 18567KB
• gpn-20231231.xsd (EX-101.SCH) — 101KB
• gpn-20231231_cal.xml (EX-101.CAL) — 183KB
• gpn-20231231_def.xml (EX-101.DEF) — 539KB
• gpn-20231231_lab.xml (EX-101.LAB) — 1353KB
• gpn-20231231_pre.xml (EX-101.PRE) — 877KB
• gpn-20231231_htm.xml (XML) — 2529KB

BUSINESS

ITEM 1. BUSINESS 5

RISK FACTORS

ITEM 1A. RISK FACTORS 16

CYBERSECURITY

ITEM 1C. CYBERSECURITY 31

PROPERTIES

ITEM 2. PROPERTIES 33

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 33 PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 34

[RESERVED]

ITEM 6. [RESERVED] 36

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 53

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 55

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 112

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 112

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 113

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 113 PART III

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 114

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 114

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 114

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 115

PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 115 PART IV

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 115

SIGNATURES

SIGNATURES 120 Table of Contents CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS Some of the statements we use in this report, and in some of the documents we incorporate by reference in this report, contain forward-looking statements concerning our business operations, economic performance and financial condition, including in particular: our business strategy and means to implement the strategy; measures of future results of operations, such as revenues, expenses, operating margins, income tax rates, and earnings per share; other operating metrics such as shares outstanding and capital expenditures; statements we make regarding guidance and projected financial results for the year 2024; the effects of general economic conditions on our business; statements about the benefits of our acquisitions or divestitures, including future financial and operating results and the completion and expected timing of our acquisitions or completion of anticipated benefits or strategic initiatives; our success and timing in developing and introducing new services and expanding our business; and other statements regarding our future financial performance and the company's plans, objectives, expectations and intentions. You can sometimes identify forward-looking statements by our use of the words "believes," "anticipates," "expects," "intends," "plan," "forecast," "guidance" and similar expressions. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Although we believe that the plans and expectations reflected in or suggested by our forward-looking statements are reasonable, those statements are based on a number of assumptions, estimates, projections or plans that are inherently subject to significant risks, uncertainties and contingencies, many of which are beyond our control, cannot be foreseen and reflect future business decisions. Accordingly, we cannot

- BUSINESS

ITEM 1- BUSINESS Global Payments Inc. and its consolidated subsidiaries are referred to collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise. Introduction We are a leading payments technology company delivering innovative software and services to our customers globally, with worldwide reach spanning North America, Europe, Asia-Pacific and Latin America. 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. Headquartered in Georgia with approximately 27,000 team members worldwide, Global Payments is a Fortune 500 company and is a member of the S&P 500. Our common stock is traded on the New York Stock Exchange under the symbol "GPN." Business Segments We operate in two reportable segments: Merchant Solutions and Issuer Solutions. During the second quarter of 2023, we completed the sale of the consumer portion of our Netspend business, which comprised our former Consumer Solutions segment. See "Note 18—Segment Information" in the notes to the accompanying consolidated financial statements for additional information about our segments, including revenues, operating income and depreciation and amortization by segment as well as financial information about geographic areas in which we operate. Recent Business Acquisitions and Dispositions Acquisition of EVO Payments, Inc. On March 24, 2023, we completed the acquisition of EVO Payments, Inc. ("EVO") for total purchase consideration of approximately $4 billion. EVO is a payment technology and services provider, offering payment solutions to merchants ranging from small and middle market enterprises to multinational companies and organizations across the Americas and Europe. The acquisition aligns with our technology-enabled payments strategy, expands our geographic presence in attractive mark