QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

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, 2018 and 2017 are as follows (in thousands, except per share data):



	Quarter Ended
	March 31, 2018		June 30, 2018		September 30, 2018		December 31, 2018

Year Ended December 31, 2018
Revenues	$	794,977	$	833,164	$	857,670	$	880,555
Operating income	156,170		190,737		223,162		166,986
Net income	97,586		117,729		186,029		83,323
Net income attributable to Global Payments	91,399		109,069		176,370		75,215
Basic earnings per share attributable to Global Payments	0.57		0.69		1.12		0.48
Diluted earnings per share attributable to Global Payments	0.57		0.68		1.11		0.47

	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

As more fully described in "Note 1—Basis of Presentation and Summary of Significant Accounting Policies" and "Note 3—Revenues" we adopted a new revenue accounting standard on January 1, 2018 that results in revenue being presented net of certain fees that we pay to third parties, including payment networks. This change in presentation affected our reported revenues and operating expenses during each of the quarterly periods in the year ended December 31, 2018 by the same amount and had no effect on operating income.

The quarterly financial data in the table above reflect the effects of acquisitions and borrowings to fund certain of those acquisitions. Notably, we acquired ACTIVE Network during the quarter ended September 30, 2017, AdvancedMD during the quarter ended September 30, 2018 and SICOM during the quarter ended December 31, 2018. Additionally, our consolidated results reflected incremental expenses associated with the acquisition and integration of acquired businesses. See "Note 2—Acquisitions" for further discussion of our acquisitions.

Acquisition and integration expenses were $18.3 million, $8.1 million, $8.2 million and $21.7 million for the quarters ended March 31, 2018, June 30, 2018, September 30, 2018 and December 31, 2018, respectively. 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.

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. Results for the quarter ended September 30, 2018 reflect the effects of a net income tax benefit of $23.3 million in connection with adjustments made to accounting estimates associated with the 2017 U.S. Tax Act. See "Note 10—Income Tax" for further discussion of the recently enacted U.S. tax legislation.