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LONG-TERM DEBT AND CREDIT FACILITIES | 7 Months Ended
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Dec. 31, 2016
Debt Disclosure [Abstract] |
LONG-TERM DEBT AND CREDIT FACILITIES | LONG-TERM DEBT AND LINES OF CREDIT As of December 31, 2016, May 31, 2016 and 2015, long-term debt consisted of the following:
| December 31, |  | May 31,
| 2016 |  | 2016 |  | 2015
| (in thousands)
Corporate credit facility: |  |  |  |  |
Term loans (face amounts of $3,728,857, $3,530,000 and $1,234,375 at December 31, 2016, May 31, 2016 and 2015, respectively, less unamortized debt issuance costs of $46,282, $51,770 and $2,433 at December 31, 2016, May 31, 2016 and 2015, respectively) | $ | 3,682,575 |  |  | $ | 3,478,230 |  |  | $ | 1,231,942 |
Revolving credit facility | 756,000 |  |  | 1,037,000 |  |  | 508,125 |
Capital lease obligations | 37 |  |  | 56 |  |  | — |
Total long-term debt | 4,438,612 |  |  | 4,515,286 |  |  | 1,740,067 |
Less current portion of corporate credit facility (face amounts of $187,274, $145,938 and $62,500 at December 31, 2016, May 31, 2016 and 2015, respectively, less unamortized debt issuance costs of $9,526, $10,442 and $716 at December 31, 2016, May 31, 2016 and 2015, respectively) and current portion of capital lease obligations of $37 and $46 at December 31, 2016 and May 31, 2016, respectively | 177,785 |  |  | 135,542 |  |  | 61,784 |
Long-term debt, excluding current portion | $ | 4,260,827 |  |  | $ | 4,379,744 |  |  | $ | 1,678,283 |
Maturity requirements on long-term debt as of December 31, 2016 by year are as follows (in thousands):
2017 | $ | 187,311 |
2018 | 200,974 |
2019 | 214,674 |
2020 | 214,674 |
2021 | 3,153,349 |
2022 and thereafter | 513,912 |
Total | $ | 4,484,894 |
We amended our existing corporate credit facility on October 31, 2016 (the "Amended 2016 Credit Facility Agreement"). The Amended 2016 Credit Facility Agreement provides for secured financing of up to $5.03 billion comprised of (i) a $1.75 billion term loan (the "Term A Loan"), (ii) a $1.48 billion term loan (the "Term A-2 Loan"), (iii) a $542 million term loan (the "Term B Loan") and (iv) a $1.25 billion revolving credit facility (the "Revolving Credit Facility"). Substantially all of the assets of our domestic subsidiaries are pledged as collateral under the Amended 2016 Credit Facility. The Amended 2016 Credit Facility Agreement provides for an interest rate, at our election, of either London Interbank Offered Rate ("LIBOR") or a base rate, in each case plus a leverage-based margin. As of December 31, 2016, the interest rates on the Term A Loan, the Term A-2 Loan and the Term B Loan were 3.02%, 2.97% and 3.27%, respectively. The Term A Loan must be repaid in equal quarterly installments of $43.8 million through August 2021, with the remaining principal balance due upon maturity in October 2021. The Term A-2 Loan must be repaid in quarterly installments of $1.7 million, the first installment of which was made in August 2016, increasing to quarterly installments of $8.6 million in August 2018 and ending in August 2021, with the remaining balance due upon maturity in October 2021. The Term B Loan must be repaid in quarterly installments of $1.4 million, the first installment commencing in December 2016, ending in March 2023, with the remaining principal balance due upon maturity in April 2023. The Amended 2016 Credit Facility Agreement allows us to issue standby letters of credit of up to $100 million in the aggregate under the Revolving Credit Facility. Outstanding letters of credit under the Revolving Credit Facility reduce the amount of borrowings available to us. Borrowings available to us under the Revolving Credit Facility are further limited by the covenants described below under "Compliance with Covenants." The total available commitments under the Revolving Credit Facility at December 31, 2016 were $446.3 million. As of December 31, 2016, the interest rate on the Revolving Credit Facility was 2.97%. In addition, we are required to pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility. The Revolving Credit Facility expires in October 2021. The portion of debt issuance costs related to the Revolving Credit Facility are included in other noncurrent assets, and the portion of debt issuance costs related to the term loans is reported as a reduction to the carrying amount of the term loans. Debt issuance costs are amortized as an adjustment to interest expense over the terms of the respective facilities. Settlement Lines of Credit We have lines of credit with banks in various markets where we do business. The lines of credit, which are restricted for use in funding settlement, generally have variable interest rates and are subject to annual review. The lines of credit are generally denominated in local currency but may, in some cases, facilitate borrowings in multiple currencies. For certain of our lines of credit, the available credit is increased by the amount of cash we have on deposit in specific accounts with the lender. Accordingly, the amount of the outstanding line of credit may exceed the stated credit limit. As of December 31, 2016, a total of $51.0 million of cash on deposit was used to determine the available credit. As of December 31, 2016, we had $392.1 million outstanding under these lines of credit with additional capacity of $882.6 million to fund settlement. The weighted-average interest rate on these borrowings was 1.9% at December 31, 2016. During the 2016 fiscal transition period, the maximum and average outstanding balances under these lines of credit were $691.7 million and $365.9 million, respectively. Compliance with Covenants The Amended 2016 Credit Facility Agreement contains customary affirmative and restrictive covenants, including, among others, financial covenants based on our leverage and fixed charge coverage ratios, as defined in the agreement. Financial covenants require a leverage ratio no greater than (i) 4.75 to 1.00 as of the end of any fiscal quarter ending during the period from September 1, 2016 through February 28, 2017, (ii) 4.50 to 1.00 as of the end of any fiscal quarter ending during the period from March 1, 2017 through August 31, 2017, (iv) 4.25 to 1.00 as of the end of any fiscal quarter ending during the period from September 1, 2017 through February 28, 2018 and (v) 4.00 to 1.00 as of the end of any fiscal quarter ending thereafter. The fixed charge coverage ratio is required to be no less than 2.25 to 1.00. The Amended 2016 Credit Facility Agreement and settlement lines of credit also include various other covenants that are customary in such borrowings. The Amended 2016 Credit Facility Agreement includes covenants, subject in each case to exceptions and qualifications that may restrict certain payments, including, in certain circumstances, the payment of cash dividends in excess of our current rate of $0.01 per share per quarter. The Amended 2016 Credit Facility Agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. We were in compliance with all applicable covenants as of December 31, 2016 and for the 2016 fiscal transition period. Interest Rate Swap Agreements We have interest rate swap agreements with financial institutions to hedge changes in cash flows attributable to interest rate risk on a portion of our variable-rate debt instruments. Net amounts to be received or paid under the swap agreements are reflected as adjustments to interest expense. Since we have designated the interest rate swap agreements as portfolio cash flow hedges, unrealized gains or losses resulting from adjusting the swaps to fair value are recorded as components of other comprehensive income, except for any ineffective portion of the change in fair value, which would be immediately recorded in interest expense. During the 2016 fiscal transition period and the fiscal years ended May 31, 2016, 2015 and 2014, there was no ineffectiveness. The fair values of the interest rate swaps were determined based on the present value of the estimated future net cash flows using implied rates in the applicable yield curve as of the valuation date. These derivative instruments were classified within Level 2 of the valuation hierarchy. The table below presents the fair values of our derivative financial instruments designated as cash flow hedges included in the consolidated balance sheets:
Derivative Financial Instruments |  | Balance Sheet Location |  | Weighted-Average Fixed Rate of Interest at December 31, 2016 |  | Range of Maturity Dates |  | December 31, 2016 |  | May 31, 2016 |  | May 31, 2015
|  |  |  |  |  |  |  | (in thousands)
Interest rate swaps (Notional of $250 million at December 31, 2016) |  | Other assets |  | 1.34% |  | July 31, 2020 |  | $ | 2,147 |  |  | $ | — |  |  | $ | — |
Interest rate swaps (Notional of $750 million at December 31, 2016, $750 million at May 31, 2016, and $500 million at May 31, 2015) |  | Accounts payable and accrued liabilities |  | 1.54% |  | February 28, 2019 to December 31, 2019 |  | $ | 3,175 |  |  | $ | 10,775 |  |  | $ | 6,157 |
As of December 31, 2016, the interest rate swap agreements effectively convert $1.0 billion of our variable-rate debt to the weighted-average fixed rates shown in the table above plus a leverage-based margin. The table below presents the effects of our interest rate swaps on the consolidated statements of income and comprehensive income for periods presented:
| Seven Months Ended December 31, |  | Year Ended May 31,
| 2016 |  | 2016 |  | 2015 |  | 2014
| (in thousands) |  |
Amount of (gain) loss recognized in other comprehensive loss | $ | (5,532 | ) |  | $ | 12,859 |  |  | $ | 10,116 |  |  | $ | — |
Amount reclassified out of other comprehensive loss to interest expense | $ | 4,222 |  |  | $ | 8,240 |  |  | $ | 3,958 |  |  | $ | — |
At December 31, 2016, the amount in accumulated other comprehensive loss related to our interest rate swaps that is expected to be reclassified into interest expense during the next 12 months was approximately $5.3 million. Interest Expense Interest expense was $108.6 million, $67.9 million, $39.9 million and $37.5 million for the 2016 fiscal transition period and the fiscal years ended May 31, 2016, 2015 and 2014, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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