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INCOME TAX (Tables) | 7 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes for the 2016 fiscal transition period and the fiscal years ended May 31, 2016, 2015, and 2014 consisted of the following:
| Seven Months Ended December 31, |  | Year Ended May 31,
| 2016 |  | 2016 |  | 2015 |  | 2014
| (in thousands)
Current income tax expense (benefit): |  |  |  |  |  |  |
Federal | $ | 22,859 |  |  | $ | 26,493 |  |  | $ | 25,022 |  |  | $ | 49,178 |
State | 3,443 |  |  | 5,454 |  |  | 3,905 |  |  | 3,856 |
Foreign | 42,681 |  |  | 56,689 |  |  | (10,346 | ) |  | 48,075 |
| 68,983 |  |  | 88,636 |  |  | 18,581 |  |  | 101,109 |
Deferred income tax expense (benefit): |  |  |  |  |  |  |
Federal | (36,447 | ) |  | (18,205 | ) |  | 14,822 |  |  | 1,568 |
State | (1,842 | ) |  | (3,620 | ) |  | 3,606 |  |  | 1,206 |
Foreign | 4,967 |  |  | 3,884 |  |  | 70,986 |  |  | 3,515 |
| (33,322 | ) |  | (17,941 | ) |  | 89,414 |  |  | 6,289 |
| $ | 35,661 |  |  | $ | 70,695 |  |  | $ | 107,995 |  |  | $ | 107,398 |
Schedule of Income before Income Tax, Domestic and Foreign | The following presents income (loss) before income taxes for the 2016 fiscal transition period and the fiscal years ended May 31, 2016, 2015, and 2014:
| Seven Months Ended December 31, |  | Year Ended May 31,
| 2016 |  | 2016 |  | 2015 |  | 2014
| (in thousands)
United States | $ | (55,279 | ) |  | $ | 59,876 |  |  | $ | 135,901 |  |  | $ | 153,453 |
Foreign | 228,623 |  |  | 301,036 |  |  | 281,209 |  |  | 223,897 |
| $ | 173,344 |  |  | $ | 360,912 |  |  | $ | 417,110 |  |  | $ | 377,350 |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rates for periods presented differ from the federal statutory rate for the 2016 fiscal transition period and the fiscal years ended May 31, 2016, 2015, and 2014 as follows:
| Seven Months Ended December 31, |  | Year Ended May 31,
| 2016 |  | 2016 |  | 2015 |  | 2014
Federal U.S. statutory rate | 35.0 | % |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal income tax benefit | 0.6 |  |  | 0.4 |  |  | 1.1 |  |  | 0.9 |
Foreign income taxes (primarily U.K.) | (12.6 | ) |  | (10.1 | ) |  | (8.5 | ) |  | (7.2 | )
Foreign interest income not subject to tax | (2.3 | ) |  | (2.6 | ) |  | (1.8 | ) |  | (2.1 | )
Taxes on unremitted earnings | — |  |  | (3.5 | ) |  | — |  |  | — |
Tax credits and other | (0.1 | ) |  | 0.4 |  |  | 1.0 |  |  | 3.1 |
Effective tax rate attributable to Global Payments | 20.6 |  |  | 19.6 |  |  | 26.8 |  |  | 29.7 |
Effective tax rate allocated to noncontrolling interests | — |  |  | — |  |  | (0.9 | ) |  | (1.2 | )
Effective tax rate | 20.6 | % |  | 19.6 | % |  | 25.9 | % |  | 28.5 | %
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2016, May 31, 2016 and 2015, principal components of deferred tax items were as follows:
| December 31, |  | May 31,
| 2016 |  | 2016 |  | 2015
| (in thousands)
Deferred income tax assets: |  |  |  |  |
Basis difference - U.K. business | $ | 11,145 |  |  | $ | 17,831 |  |  | $ | 24,520 |
Domestic net operating loss carryforwards | 12,723 |  |  | 14,304 |  |  | 6,927 |
Foreign income tax credit carryforwards | 7,140 |  |  | 7,140 |  |  | 14,172 |
Foreign net operating loss carryforwards | 2,559 |  |  | 3,721 |  |  | 2,330 |
Share-based compensation expense | 11,656 |  |  | 11,677 |  |  | 7,727 |
Accrued expenses | 54,030 |  |  | 42,687 |  |  | — |
Other | 9,101 |  |  | 6,483 |  |  | 8,636 |
| 108,354 |  |  | 103,843 |  |  | 64,312 |
Less valuation allowance | (16,611 | ) |  | (15,119 | ) |  | (3,823 | )
| 91,743 |  |  | 88,724 |  |  | 60,489 |
Deferred tax liabilities: |  |  |  |  |
Acquired intangibles | 663,922 |  |  | 721,928 |  |  | 147,239 |
Property and equipment | 86,548 |  |  | 86,969 |  |  | 63,957 |
Taxes on unremitted earnings | — |  |  | — |  |  | 4,992 |
Foreign currency translation | — |  |  | — |  |  | 14,659 |
Other | 1,956 |  |  | 1,970 |  |  | 2,069 |
| 752,426 |  |  | 810,867 |  |  | 232,916 |
Net deferred income tax liability | $ | (660,683 | ) |  | $ | (722,143 | ) |  | $ | (172,427 | )
The net deferred income taxes reflected on our consolidated balance sheets as of December 31, 2016, May 31, 2016 and 2015 are as follows:
| December 31, |  | May 31,
| 2016 |  | 2016 |  | 2015
| (in thousands)
Noncurrent deferred income tax asset | $ | 15,789 |  |  | $ | 22,719 |  |  | $ | 30,428 |
Noncurrent deferred income tax liability | (676,472 | ) |  | (744,862 | ) |  | (202,855 | )
| $ | (660,683 | ) |  | $ | (722,143 | ) |  | $ | (172,427 | )
Summary of Valuation Allowance | Changes to our valuation allowance during the 2016 fiscal transition period and the fiscal years ended May 31, 2016 and 2015 are summarized below (in thousands):
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 | )
Allowance for foreign income tax credit carryforward | (7,140 | )
Allowance for domestic net operating loss carryforwards | (4,474 | )
Allowance for domestic net unrealized capital loss | (1,526 | )
Release of allowance of domestic capital loss carryforward | 1,746 |
Other | 98 |
Balance at May 31, 2016 | (15,119 | )
Allowance for domestic net operating loss carryforwards | (1,504 | )
Release of allowance of domestic net unrealized capital loss | 12 |
Balance at December 31, 2016 | $ | (16,611 | )
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 2016 fiscal transition period and the fiscal years ended May 31, 2016, 2015, and 2014 is as follows:
| Seven Months Ended December 31, |  | Year Ended May 31,
| 2016 |  | 2016 |  | 2015 |  | 2014
| (in thousands)
Balance at the beginning of the year | $ | 7,803 |  |  | $ | 2,559 |  |  | $ | 67,576 |  |  | $ | 53,763 |
Additions based on income tax positions related to the current year | 4,626 |  |  | 287 |  |  | 6,311 |  |  | 8,551 |
Additions related to acquisition | 6,149 |  |  | 6,151 |  |  | — |  |  | — |
Additions for income tax positions of prior years | 247 |  |  | 753 |  |  | 512 |  |  | 296 |
Effect of foreign currency fluctuations on income tax positions | (3 | ) |  | 2 |  |  | (5,713 | ) |  | 5,303 |
Reductions for income tax positions of prior years | (906 | ) |  | (123 | ) |  | (32 | ) |  | (60 | )
Settlements with income tax authorities | — |  |  | (1,826 | ) |  | (504 | ) |  | (277 | )
Changes in judgment regarding tax position | — |  |  | — |  |  | (65,591 | ) |  | — |
Balance at the end of the year | $ | 17,916 |  |  | $ | 7,803 |  |  | $ | 2,559 |  |  | $ | 67,576 |

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