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Income Tax (Tables)

12 Months Ended

May. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for the years ended May 31, 2015, 2014 and 2013 consisted of the following:

	2015				2014				2013
	(in thousands)
Current income tax expense:
Federal	$	25,022			$	49,178			$	16,326
State	3,905				3,856				987
Foreign	(10,346		)		48,075				36,020
	18,581				101,109				53,333
Deferred income tax expense:
Federal	14,822				1,568				26,302
State	3,606				1,206				3,568
Foreign	70,986				3,515				12,368
	89,414				6,289				42,238
	$	107,995			$	107,398			$	95,571

Schedule of Income before Income Tax, Domestic and Foreign

The following presents income before income taxes for the years ended May 31, 2015, 2014 and 2013:

	2015				2014				2013
	(in thousands)
United States	$	135,901			$	153,453			$	137,501
Foreign	281,209				223,897				196,783
	$	417,110			$	377,350			$	334,284

Schedule of Effective Income Tax Rate Reconciliation

Our effective tax rates for the years ended May 31, 2015, 2014 and 2013, respectively, differ from the federal statutory rate as follows:

	2015			2014			2013
Federal U.S. statutory rate	35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit	1.1			0.9			0.9
Foreign income taxes	(8.5	)		(7.2	)		(7.0	)
Foreign interest income not subject to tax	(1.8	)		(2.1	)		(2.8	)
Tax credits and other	1.0			3.1			3.7
Effective tax rate attributable to Global Payments	26.8			29.7			29.8
Effective tax rate allocated to noncontrolling interests	(0.9	)		(1.2	)		(1.2	)
Effective tax rate	25.9	%		28.5	%		28.6	%

Schedule of Deferred Tax Assets and Liabilities

As of May 31, 2015 and 2014, principal components of deferred tax items were as follows:

	2015				2014
	(in thousands)
Deferred income tax assets:
Basis difference - U.K. business	$	24,520			$	96,720
Foreign income tax credit carryforward	14,172				11,819
Foreign net operating loss carryforward	2,330				6,881
U.S. net operating loss carryforward	6,927				22,074
Share-based compensation expense	7,727				5,916
Other	8,636				6,266
	64,312				149,676
Less valuation allowance	(3,823		)		(7,199		)
	60,489				142,477
Deferred income tax liabilities:
Acquired intangible assets	147,239				149,440
Property and equipment	63,957				53,238
Taxes on unremitted earnings and other	4,992				5,470
Foreign currency translation	14,659				26,813
Other	2,069				1,800
	232,916				236,761
Net deferred income tax liability	$	(172,427	)		$	(94,284	)

The net deferred income tax liability is reflected on our consolidated balance sheets as of May 31, 2015 and 2014 as follows:

	2015				2014
	(in thousands)
Noncurrent deferred income tax asset	30,428				101,940
Noncurrent deferred income tax liability	(202,855		)		(196,224		)
	$	(172,427	)		$	(94,284	)

Summary of Valuation Allowance

Changes to our valuation allowance during the years ended May 31, 2015 and 2014 are summarized below (in thousands):

Balance at May 31, 2013	$	(28,464	)
Utilization of foreign net operating loss carryforwards	2,822
Allowance for foreign tax credit carryforward	18,061
Other	382
Balance at May 31, 2014	(7,199		)
Utilization of foreign net operating loss carryforwards	3,387
Other	(11		)
Balance at May 31, 2015	$	(3,823	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amounts of unrecognized income tax benefits, excluding penalties and interest, for the years ended May 31, 2015, 2014, and 2013 is as follows:

	2015				2014				2013
	(in thousands)
Balance at the beginning of the year	$	67,576			$	53,763			$	45,595
Additions based on income tax positions related to the current year	6,311				8,551				8,778
Additions for income tax positions of prior years	512				296				142
Foreign currency impact for income tax positions	(5,713		)		5,303				(601		)
Reductions for income tax positions of prior years	(32		)		(60		)		(151		)
Settlements with income tax authorities	(504		)		(277		)		—
Changes in judgment regarding tax position	(65,591		)		—				—
Balance at the end of the year	$	2,559			$	67,576			$	53,763

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of the change in unrecognized tax benefits.

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