COMPARATIVE DATA FOR THE YEAR ENDED DECEMBER 31, 2016 AND THE SEVEN MONTHS ENDED DECEMBER 31, 2015 (UNAUDITED)

12 Months Ended

Dec. 31, 2017

COMPARATIVE DATA FOR THE YEAR ENDED DECEMBER 31, 2016 AND THE SEVEN MONTHS ENDED DECEMBER 31, 2015 (UNAUDITED)

The condensed consolidated statement of income for the year ended December 31, 2016 and the seven months ended December 31, 2015 is as follows (in thousands, except per share data):



	Year Ended December 31,			Seven Months Ended December 31,
	2016			2015

Revenues	$	3,370,976		$	1,730,070
Operating expenses:
Cost of service	1,603,532			638,700
Selling, general and administrative	1,411,096			784,823
	3,014,628			1,423,523

Operating income	356,348			306,547

Interest and other income	46,780			2,886
Interest and other expense	(146,156		)	(32,149		)
	(99,376		)	(29,263		)

Income before income taxes	256,972			277,284
Provision for income taxes	(36,267		)	(70,089		)
Net income	220,705			207,195
Less: Net income attributable to noncontrolling interests	(18,952		)	(12,351		)
Net income attributable to Global Payments	$	201,753		$	194,844

Earnings per share attributable to Global Payments:
Basic earnings per share	$	1.38		$	1.50
Diluted earnings per share	$	1.37		$	1.49

QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

Summarized quarterly results for the years ended December 31, 2017 and 2016 are as follows (in thousands, except per share data):



	Quarter Ended
	March 31, 2017		June 30, 2017		September 30, 2017		December 31, 2017

Year Ended December 31, 2017
Revenues	$	919,762	$	962,240	$	1,038,907	$	1,054,253
Operating income	104,970		131,852		172,471		149,575
Net income	52,959		72,443		118,362		250,305
Net income attributable to Global Payments	48,813		66,909		110,740		241,962
Basic earnings per share attributable to Global Payments	0.32		0.44		0.72		1.52
Diluted earnings per share attributable to Global Payments	0.32		0.44		0.71		1.51

	Quarter Ended
	March 31, 2016		June 30, 2016		September 30, 2016		December 31, 2016

Year Ended December 31, 2016
Revenues	$	626,259	$	842,644	$	951,885	$	950,187
Operating income	94,573		61,161		120,389		80,226
Net income	63,447		67,133		62,224		27,902
Net income attributable to Global Payments	59,911		62,233		55,510		24,101
Basic earnings per share attributable to Global Payments	0.46		0.42		0.36		0.16
Diluted earnings per share attributable to Global Payments	0.46		0.42		0.36		0.16

The quarterly financial data in the table above reflect the effects of acquisitions and borrowings to fund certain of those acquisitions. Notably, we acquired Heartland during the quarter ended June 30, 2016 and ACTIVE Network during the quarter ended September 30, 2017. Additionally, our consolidated results reflected incremental expenses associated with the acquisition and integration of Heartland and ACTIVE Network. See "Note 2—Acquisitions" for further discussion of our acquisitions.

Acquisition and integration expenses were $26.1 million, $21.9 million, $21.5 million and $25.1 million for the quarters ended March 31, 2017, June 30, 2017, September 30, 2017 and December 31, 2017, respectively. Acquisition and integration expenses were $8.5 million, $50.5 million, $34.0 million, and $49.1 million for the quarters ended March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016, respectively.

Results for the quarter ended June 30, 2016 reflect a gain of $41.2 million recorded in connection with the sale of our membership interests in Visa Europe. See "Note 6—Other Assets" for further discussion of this transaction.

Results for the quarter ended December 31, 2017 reflect the effects of a net income tax benefit of $158.7 million in connection with the 2017 U.S. Tax Act, which was enacted on December 22, 2017. See "Note 9—Income Tax" for further discussion of the new tax legislation.