Item 5. Market for Registrant’s Common Equity
ITEM 5 - MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock trades on the New York Stock Exchange under the ticker symbol "GPN." As of February 16, 2021, there were 13,490 shareholders of record.
Equity Compensation Plan Information
The information regarding our compensation plans under which equity securities are authorized for issuance is set forth in "Item 12—Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" of this Annual Report.
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Stock Performance Graph
In 2016, we changed our fiscal year-end from May 31 to December 31. We refer to the period consisting of the seven-months ended December 31, 2016 as the "2016 fiscal transition period."
The following graph compares our cumulative shareholder returns with the Standard & Poor's Information Technology Index and the Standard & Poor's 500 Index for the years ended December 31, 2020, 2019 and 2018, 2017, and the 2016 fiscal transition period and the year ended May 31, 2016. The line graph assumes the investment of $100 in our common stock, the Standard & Poor's ("S&P") 500 Index and the Standard & Poor's Information Technology Index on May 31, 2015 and assumes reinvestment of all dividends.
COMPARISON OF 6 YEAR CUMULATIVE TOTAL RETURN*
Among Global Payments Inc., the S&P 500 Index
and the S&P Information Technology Index
*$100 invested on May 31, 2015 in stock or index, including reinvestment of dividends.
Fiscal year ending December 31
Copyright© 2021 Standard & Poor's, a division of S&P Global. All rights reserved.
Global
Payments S&P
500 Index S&P
Information
Technology Index
May 31, 2015 $ 100.00 $ 100.00 $ 100.00
May 31, 2016 148.95 101.72 103.32
December 31, 2016 133.12 109.96 114.53
December 31, 2017 192.33 133.96 159.00
December 31, 2018 197.95 128.09 158.54
December 31, 2019 350.86 168.42 238.27
December 31, 2020 415.89 199.41 342.85
Recent Sales of Unregistered Securities
There were no unregistered sales of equity securities during the year ended December 31, 2020.
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Issuer Purchases of Equity Securities
Information about the shares of our common stock that we repurchased during the quarter ended December 31, 2020 is set forth below:
Period Total Number of
Shares Purchased (1)
Approximate Average Price Paid per Share Total Number of
Shares Purchased as Part of
Publicly Announced
Plans or Programs Maximum
Number (or
Approximate
Dollar Value) of
Shares that May Yet Be Purchased Under
the Plans or
Programs (2)
(in millions)
October 1-31, 2020 1,412 $ 177.49 — $ —
November 1-30, 2020 822,592 182.79 — —
December 1-31, 2020 471,809 207.33 — —
Total 1,295,813 $ 191.72 — $ 1,020.0
(1) Our board of directors authorized us to repurchase shares of our common stock through any combination of Rule 10b5-1 open-market repurchase plans, accelerated share repurchase plans, discretionary open-market purchases or privately negotiated transactions.
During the quarter ended December 31, 2020, pursuant to our employee incentive plans, we withheld 86,214 shares at an average price per share of $213.96 in order to satisfy employees' tax withholding and payment obligations in connection with the vesting of awards of restricted stock, which we withheld at fair market value on the vesting date.
(2) On January 28, 2021, the board of directors increased its authorization to repurchase shares of our common stock to $1,500 million, inclusive of prior share repurchase programs authorized by the board and repurchases made thereunder. As of December 31, 2020, the approximate dollar value of shares that may yet be purchased under our share repurchase program was $1,020.0 million. The authorizations by our board of directors do not expire, but could be revoked at any time. In addition, we are not required by any of our board's authorizations or otherwise to complete any repurchases by any specific time or at all.
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ITEM 6 - SELECTED FINANCIAL DATA
You should read the selected financial data set forth below in conjunction with (i) "Item 7 ‑ Management's Discussion and Analysis of Financial Condition and Results of Operations," (ii) "Item 8 ‑ Financial Statements and Supplementary Data" and (iii) the historical consolidated financial statements of Global Payments and the related notes presented in this Annual Report on Form 10-K.
Years Ended December 31, Seven Months
Ended
December 31, 2016 Year Ended May 31,
2020 2019 2018 2017 2016
(in thousands, except per share data)
Income statement data:
Revenues $ 7,423,558 $ 4,911,892 $ 3,366,366 $ 3,975,163 $ 2,202,896 $ 2,898,150
Operating income 893,953 791,417 737,055 558,868 237,951 424,944
Net income 605,100 469,276 484,667 494,070 137,683 290,217
Net income attributable to Global Payments
584,520 430,613 452,053 468,425 124,931 271,666
Per share data:
Basic earnings per share $ 1.95 $ 2.17 $ 2.85 $ 3.03 $ 0.81 $ 2.05
Diluted earnings per share 1.95 2.16 2.84 3.01 0.81 2.04
Cash dividends declared per common share
0.78 0.225 0.04 0.04 0.02 0.04
Balance sheet data (at period end):
Total assets $ 44,201,545 $ 44,480,162 $ 13,230,774 $ 12,998,069 $ 10,664,350 $ 10,509,952
Settlement lines of credit 358,698 463,237 700,486 635,166 392,072 378,436
Long-term debt 9,293,764 9,125,501 5,130,243 4,659,716 4,438,612 4,515,286
Total equity 27,487,044 28,054,989 4,186,343 3,965,231 2,779,342 2,877,404
Our financial results for the year ended December 31, 2020 reflect the unfavorable effects of the COVID-19 pandemic on our revenues as governments took actions to encourage social distancing and implemented shelter-in-place directives, slightly offset by cost-saving actions, such as reductions in employee compensation costs and discretionary spending, to help mitigate the financial effects of the COVID-19 pandemic. See “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further discussion of the effects of the COVID-19 pandemic.
As more fully described in "Note 1—Basis of Presentation and Summary of Significant Accounting Policies" in the notes to the accompanying consolidated financial statements, 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 for all periods after the year ended December 31, 2017 by the same amount and had no effect on operating income.
The selected financial data in the table above reflect the effects of acquisitions and borrowings to fund certain of those acquisitions. Notably, in 2019, we completed the Merger for total purchase consideration of $24.5 billion, primarily funded with shares of our common stock. We also restructured our long-term debt facilities to include a $5.0 billion credit facility, consisting of a senior unsecured $2.0 billion term loan and a $3.0 billion revolving loan facility, and unsecured senior notes of $3.0 billion. In addition, we also assumed $3.0 billion of TSYS' unsecured senior notes in the Merger. See "Note 2—Acquisitions" and "Note 8—Long-Term Debt and Lines of Credit," respectively, in the notes to the accompanying consolidated financial statements for further discussion of our acquisitions and borrowing arrangements.
Operating income, net income, net income attributable to Global Payments and basic and diluted earnings per share in the table above reflect acquisition and integration expenses of $320.0 million for the year ended December 31, 2020, $255.6 million for the year ended December 31, 2019, $56.1 million for the year ended December 31, 2018, $94.6 million for the year ended December 31, 2017, $91.6 million for the seven months ended December 31, 2016 and $51.3 million for the year ended May 31, 2016.
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Net income, net income attributable to Global Payments and basic and diluted earnings per share in the table above also reflect the following:
(a) the effects of a net income tax benefit of $23.3 million in connection with adjustments made to accounting estimates associated with the U.S. Tax Cuts and Jobs Act of 2017 ("2017 U.S. Tax Act") for the year ended December 31, 2018 and a provisional net income tax benefit of $158.7 million recorded in connection with the 2017 U.S. Tax Act for the year ended December 31, 2017; and
(b) a gain of $27.7 million and $41.2 million for the year ended December 31, 2020 and the seven months ended December 31, 2016, respectively, recognized in connection with the sale of our membership interests in Visa Europe Limited.