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INCOME TAX (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The income tax provision (benefit) for the year ended December 31, 2017, the 2016 fiscal transition period and the years ended May 31, 2016 and 2015 consisted of the following:
| Year Ended December 31, |  | Seven Months Ended December 31, |  | Year Ended May 31,
| 2017 |  | 2016 |  | 2016 |  | 2015
| (in thousands)
Current income tax provision (benefit): |  |  |  |  |  |  |
Federal | $ | 79,903 |  |  | $ | 22,859 |  |  | $ | 26,493 |  |  | $ | 25,022 |
State | 3,468 |  |  | 3,443 |  |  | 5,454 |  |  | 3,905 |
Foreign | 67,851 |  |  | 42,681 |  |  | 56,689 |  |  | (10,346 | )
| 151,222 |  |  | 68,983 |  |  | 88,636 |  |  | 18,581 |
Deferred income tax provision (benefit): |  |  |  |  |  |  |
Federal | (266,869 | ) |  | (36,447 | ) |  | (18,205 | ) |  | 14,822 |
State | 9,678 |  |  | (1,842 | ) |  | (3,620 | ) |  | 3,606 |
Foreign | 4,582 |  |  | 4,967 |  |  | 3,884 |  |  | 70,986 |
| (252,609 | ) |  | (33,322 | ) |  | (17,941 | ) |  | 89,414 |
| $ | (101,387 | ) |  | $ | 35,661 |  |  | $ | 70,695 |  |  | $ | 107,995 |
Schedule of Income before Income Tax, Domestic and Foreign | The following presents income (loss) before income taxes for the year ended December 31, 2017, the 2016 fiscal transition period and the years ended May 31, 2016 and 2015:
| Year Ended December 31, |  | Seven Months Ended December 31, |  | Year Ended May 31,
| 2017 |  | 2016 |  | 2016 |  | 2015
| (in thousands)
United States | $ | 29,692 |  |  | $ | (55,279 | ) |  | $ | 59,876 |  |  | $ | 135,901 |
Foreign | 362,991 |  |  | 228,623 |  |  | 301,036 |  |  | 281,209 |
| $ | 392,683 |  |  | $ | 173,344 |  |  | $ | 360,912 |  |  | $ | 417,110 |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rates for periods presented differ from the federal statutory rate for the year ended December 31, 2017, the 2016 fiscal transition period and the years ended May 31, 2016 and 2015 as follows:
| Year Ended December 31, |  | Seven Months Ended December 31, |  | Year Ended May 31,
| 2017 |  | 2016 |  | 2016 |  | 2015
Federal U.S. statutory rate | 35.0 | % |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal income tax benefit | 1.9 |  |  | 0.6 |  |  | 0.4 |  |  | 1.1 |
Federal U.S. transition tax | 16.2 |  |  | — |  |  | — |  |  | — |
Federal U.S. rate reduction | (55.6 | ) |  | — |  |  | — |  |  | — |
Foreign income taxes (primarily U.K.) | (12.0 | ) |  | (12.6 | ) |  | (10.1 | ) |  | (8.5 | )
Foreign interest income not subject to tax | (2.2 | ) |  | (2.3 | ) |  | (2.6 | ) |  | (1.8 | )
Taxes on unremitted earnings | — |  |  | — |  |  | (3.5 | ) |  | — |
Share-based compensation expense | (4.2 | ) |  | — |  |  | — |  |  | — |
Valuation allowance | (3.2 | ) |  | — |  |  | — |  |  | — |
Other | (1.7 | ) |  | (0.1 | ) |  | 0.4 |  |  | 1.0 |
Effective tax rate attributable to Global Payments | (25.8 | ) |  | 20.6 |  |  | 19.6 |  |  | 26.8 |
Effective tax rate allocated to noncontrolling interests | — |  |  | — |  |  | — |  |  | (0.9 | )
Effective tax rate | (25.8 | )% |  | 20.6 | % |  | 19.6 | % |  | 25.9 | %
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2017 and 2016, principal components of deferred tax items were as follows:
| 2017 |  | 2016
| (in thousands)
Deferred income tax assets: |  |  |
Basis difference - U.K. business | $ | 8,961 |  |  | $ | 11,145 |
Domestic net operating loss carryforwards | 17,228 |  |  | 12,723 |
Foreign income tax credit carryforwards | — |  |  | 7,140 |
Foreign net operating loss carryforwards | 3,819 |  |  | 2,559 |
Share-based compensation expense | 7,856 |  |  | 11,656 |
Accrued expenses | 34,582 |  |  | 54,030 |
Other | 18,502 |  |  | 9,101 |
| 90,948 |  |  | 108,354 |
Less valuation allowance | (16,550 | ) |  | (16,611 | )
| 74,398 |  |  | 91,743 |
Deferred tax liabilities: |  |  |
Acquired intangibles | 410,563 |  |  | 663,922 |
Property and equipment | 77,481 |  |  | 86,548 |
Other | 10,087 |  |  | 1,956 |
| 498,131 |  |  | 752,426 |
Net deferred income tax liability | $ | (423,733 | ) |  | $ | (660,683 | )
The net deferred income taxes reflected on our consolidated balance sheets as of December 31, 2017 and 2016 are as follows:
| 2017 |  | 2016
| (in thousands)
Noncurrent deferred income tax asset | $ | 13,146 |  |  | $ | 15,789 |
Noncurrent deferred income tax liability | (436,879 | ) |  | (676,472 | )
| $ | (423,733 | ) |  | $ | (660,683 | )
Summary of Valuation Allowance | Changes to our valuation allowance during the year ended December 31, 2017, the 2016 fiscal transition period and the 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 | )
Allowance for foreign net operating loss carryforwards | (6,469 | )
Allowance for domestic net operating loss carryforwards | (3,793 | )
Allowance for state credit carryforwards | (685 | )
Rate change on domestic net operating loss and capital loss carryforwards | 3,868 |
Utilization of foreign income tax credit carryforward | 7,140 |
Balance at December 31, 2017 | $ | (16,550 | )
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 year ended December 31, 2017, the 2016 fiscal transition period and the years ended May 31, 2016 and 2015 is as follows:
| Year Ended December 31, |  | Seven Months Ended December 31, |  | Year Ended May 31,
| 2017 |  | 2016 |  | 2016 |  | 2015
| (in thousands)
Balance at the beginning of the year | $ | 17,916 |  |  | $ | 7,803 |  |  | $ | 2,559 |  |  | $ | 67,576 |
Additions based on income tax positions related to the current year | 7,537 |  |  | 4,626 |  |  | 287 |  |  | 6,311 |
Additions related to acquisition | 13,061 |  |  | 6,149 |  |  | 6,151 |  |  | — |
Additions for income tax positions of prior years | 411 |  |  | 247 |  |  | 753 |  |  | 512 |
Effect of foreign currency fluctuations on income tax positions | 27 |  |  | (3 | ) |  | 2 |  |  | (5,713 | )
Reductions for income tax positions of prior years | (7,285 | ) |  | (906 | ) |  | (123 | ) |  | (32 | )
Settlements with income tax authorities | (449 | ) |  | — |  |  | (1,826 | ) |  | (504 | )
Changes in judgment regarding tax position | — |  |  | — |  |  | — |  |  | (65,591 | )
Balance at the end of the year | $ | 31,218 |  |  | $ | 17,916 |  |  | $ | 7,803 |  |  | $ | 2,559 |

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