gpn-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-16111

GLOBAL PAYMENTS INC.

(Exact name of registrant as specified in charter)


Georgia						58-2567903
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

3550 Lenox Road, Atlanta, Georgia

30326

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (770) 829-8000


Securities registered pursuant to Section 12(b) of the Act
Title of each class	Trading symbol	Name of exchange on which registered
Common stock, no par value	GPN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☑

The number of shares of the issuer’s common stock, no par value, outstanding as of July 28, 2022 was 277,162,888.

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GLOBAL PAYMENTS INC.

FORM 10-Q

For the quarterly period ended June 30, 2022

TABLE OF CONTENTS


		Page
PART I - FINANCIAL INFORMATION
ITEM 1.	Unaudited Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021	3
	Unaudited Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021	5
	Consolidated Balance Sheets at June 30, 2022 (unaudited) and December 31, 2021	6
	Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021	7
	Unaudited Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2022 and 2021	8
	Notes to Unaudited Consolidated Financial Statements	10
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	28
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	40
ITEM 4.	Controls and Procedures	41
PART II - OTHER INFORMATION
ITEM 1.	Legal Proceedings	42
ITEM 1A.	Risk Factors	42
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
ITEM 6.	Exhibits	45
	Signatures	46

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PART I - FINANCIAL INFORMATION

ITEM 1—FINANCIAL STATEMENTS

GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)


	Three Months Ended
	June 30, 2022		June 30, 2021

Revenues	$	2,280,906	$	2,137,437
Operating expenses:
Cost of service	962,299		936,310
Selling, general and administrative	863,179		838,569
Impairment of goodwill	833,075		—
Loss on business dispositions	152,211		—
	2,810,764		1,774,879
Operating (loss) income	(529,858)		362,558

Interest and other income	2,956		5,455
Interest and other expense	(99,188)		(80,556)
	(96,232)		(75,101)
(Loss) income before income taxes and equity in income of equity method investments	(626,090)		287,457
Income tax expense	52,776		60,808
(Loss) income before equity in income of equity method investments	(678,866)		226,649
Equity in income of equity method investments, net of tax	13,815		40,164
Net (loss) income	(665,051)		266,813
Net income attributable to noncontrolling interests, net of tax	(7,948)		(3,223)
Net (loss) income attributable to Global Payments	$	(672,999)	$	263,590

(Loss) earnings per share attributable to Global Payments:
Basic (loss) earnings per share	$	(2.42)	$	0.89
Diluted (loss) earnings per share	$	(2.42)	$	0.89

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)


	Six Months Ended
	June 30, 2022		June 30, 2021

Revenues	$	4,437,160	$	4,127,444
Operating expenses:
Cost of service	1,919,457		1,861,556
Selling, general and administrative	1,686,328		1,628,071
Impairment of goodwill	833,075		—
Loss on business dispositions	152,211		—
	4,591,071		3,489,627
Operating (loss) income	(153,911)		637,817

Interest and other income	4,667		9,689
Interest and other expense	(192,471)		(163,697)
	(187,804)		(154,008)
(Loss) income before income taxes and equity in income of equity method investments	(341,715)		483,809
Income tax expense	104,994		81,483
(Loss) income before equity in income of equity method investments	(446,709)		402,326
Equity in income of equity method investments, net of tax	31,294		62,897
Net (loss) income	(415,415)		465,223
Net income attributable to noncontrolling interests, net of tax	(12,851)		(4,952)
Net (loss) income attributable to Global Payments	$	(428,266)	$	460,271

(Loss) earnings per share attributable to Global Payments:
Basic (loss) earnings per share	$	(1.53)	$	1.56
Diluted (loss) earnings per share	$	(1.53)	$	1.55

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)


	Three Months Ended
	June 30, 2022		June 30, 2021

Net (loss) income	$	(665,051)	$	266,813
Other comprehensive income (loss):
Foreign currency translation adjustments	(210,882)		32,671
Reclassification of accumulated foreign currency translation losses to net loss as a result of the sale of a foreign entity	62,925		—
Income tax benefit related to foreign currency translation adjustments	963		4,242
Net unrealized gains (losses) on hedging activities	5,051		(410)
Reclassification of net unrealized losses on hedging activities to interest expense	7,534		9,662
Income tax expense related to hedging activities	(3,052)		(2,225)
Other, net of tax	—		(1,549)
Other comprehensive (loss) income	(137,461)		42,391

Comprehensive (loss) income	(802,512)		309,204
Comprehensive loss (income) attributable to noncontrolling interests	5,540		(5,948)
Comprehensive (loss) income attributable to Global Payments	$	(796,972)	$	303,256


	Six Months Ended
	June 30, 2022		June 30, 2021

Net (loss) income	$	(415,415)	$	465,223
Other comprehensive income (loss):
Foreign currency translation adjustments	(243,843)		(895)
Reclassification of accumulated foreign currency translation losses to net loss as a result of the sale of a foreign entity	62,925		—
Income tax benefit related to foreign currency translation adjustments	1,634		4,991
Net unrealized gains on hedging activities	13,985		584
Reclassification of net unrealized losses on hedging activities to interest expense	16,979		20,500
Income tax expense related to hedging activities	(7,508)		(5,089)
Other, net of tax	—		6,226
Other comprehensive (loss) income	(155,828)		26,317

Comprehensive (loss) income	(571,243)		491,540
Comprehensive loss (income) attributable to noncontrolling interests	5,981		(1,703)
Comprehensive (loss) income attributable to Global Payments	$	(565,262)	$	489,837

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)


	June 30, 2022		December 31, 2021
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,933,309	$	1,979,308
Accounts receivable, net	989,172		946,247
Settlement processing assets	1,544,124		1,143,539
Current assets held for sale	65,998		4,779
Prepaid expenses and other current assets	684,393		637,112
Total current assets	5,216,996		4,710,985
Goodwill	23,496,495		24,813,274
Other intangible assets, net	10,272,685		11,633,709
Property and equipment, net	1,689,292		1,687,586
Deferred income taxes	30,564		12,117
Noncurrent assets held for sale	1,087,411		—
Other noncurrent assets	2,382,381		2,422,042
Total assets	$	44,175,824	$	45,279,713
LIABILITIES AND EQUITY
Current liabilities:
Settlement lines of credit	$	469,540	$	484,202
Current portion of long-term debt	1,279,743		78,505
Accounts payable and accrued liabilities	2,338,867		2,542,256
Settlement processing obligations	1,799,689		1,358,051
Current liabilities held for sale	93,966		—
Total current liabilities	5,981,805		4,463,014
Long-term debt	10,883,721		11,414,809
Deferred income taxes	2,626,096		2,793,427
Noncurrent liabilities held for sale	4,670		—
Other noncurrent liabilities	703,005		739,046
Total liabilities	20,199,297		19,410,296
Commitments and contingencies
Equity:
Preferred stock, no par value; 5,000,000 shares authorized and none issued	—		—
Common stock, no par value; 400,000,000 shares authorized at June 30, 2022 and December 31, 2021; 277,032,813 issued and outstanding at June 30, 2022 and 284,750,452 issued and outstanding at December 31, 2021	—		—
Paid-in capital	21,800,574		22,880,261
Retained earnings	2,326,259		2,982,122
Accumulated other comprehensive loss	(371,178)		(234,182)
Total Global Payments shareholders’ equity	23,755,655		25,628,201
Noncontrolling interests	220,872		241,216
Total equity	23,976,527		25,869,417
Total liabilities and equity	$	44,175,824	$	45,279,713

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


	Six Months Ended
	June 30, 2022		June 30, 2021
Cash flows from operating activities:
Net (loss) income	$	(415,415)	$	465,223
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	199,875		193,574
Amortization of acquired intangibles	656,373		654,042
Amortization of capitalized contract costs	53,113		43,975
Share-based compensation expense	85,414		80,490
Provision for operating losses and credit losses	57,929		50,802
Noncash lease expense	43,036		54,533
Deferred income taxes	(180,001)		(91,177)
Equity in income of equity method investments, net of tax	(31,294)		(62,897)
Distribution received on investments	8,212		20,305
Impairment of goodwill	833,075		—
Loss on business dispositions	152,211		—
Other, net	9,361		(6,340)
Changes in operating assets and liabilities, net of the effects of business combinations:
Accounts receivable	(80,580)		(91,580)
Settlement processing assets and obligations, net	69,595		25,312
Prepaid expenses and other assets	(191,652)		(151,353)
Accounts payable and other liabilities	(71,119)		(75,268)
Net cash provided by operating activities	1,198,133		1,109,641
Cash flows from investing activities:
Business combinations and other acquisitions, net of cash acquired	(9,931)		(943,108)
Capital expenditures	(324,027)		(219,579)
Effect on cash from sale of business	(29,755)		—
Other, net	16		742
Net cash used in investing activities	(363,697)		(1,161,945)
Cash flows from financing activities:
Net borrowings from settlement lines of credit	4,139		134,245
Proceeds from long-term debt	2,954,156		2,820,988
Repayments of long-term debt	(2,276,488)		(1,830,258)
Payments of debt issuance costs	(1,706)		(8,569)
Repurchases of common stock	(1,249,994)		(1,072,934)
Proceeds from stock issued under share-based compensation plans	23,619		29,304
Common stock repurchased - share-based compensation plans	(26,972)		(49,664)
Distributions to noncontrolling interests	(14,363)		—
Payment of contingent consideration in business combination	(15,726)		—
Dividends paid	(139,315)		(114,875)
Net cash used in financing activities	(742,650)		(91,763)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(114,968)		(5,980)
Decrease in cash, cash equivalents and restricted cash	(23,182)		(150,047)
Cash, cash equivalents and restricted cash, beginning of the period	2,123,023		2,089,771
Cash, cash equivalents and restricted cash, end of the period	$	2,099,841	$	1,939,724

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands, except per share data)


	Number of Shares	Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Global Payments Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance at March 31, 2022	281,434	$	22,338,086	$	3,068,683	$	(247,205)	$	25,159,564	$	235,241	$	25,394,805
Net (loss) income				(672,999)				(672,999)		7,948		(665,051)
Other comprehensive loss						(123,973)		(123,973)		(13,488)		(137,461)
Stock issued under share-based compensation plans	125	15,680						15,680				15,680
Common stock repurchased - share-based compensation plans	(2)	(220)						(220)				(220)
Share-based compensation expense		47,014						47,014				47,014
Repurchases of common stock	(4,524)	(599,986)		(352)				(600,338)				(600,338)
Distributions to noncontrolling interest								—		(8,829)		(8,829)
Cash dividends declared ($0.25 per common share)				(69,073)				(69,073)				(69,073)
Balance at June 30, 2022	277,033	$	21,800,574	$	2,326,259	$	(371,178)	$	23,755,655	$	220,872	$	23,976,527


	Number of Shares	Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Global Payments Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance at March 31, 2021	295,158	$	24,403,323	$	2,500,812	$	(212,373)	$	26,691,762	$	150,429	$	26,842,191
Net income				263,590				263,590		3,223		266,813
Other comprehensive income						39,666		39,666		2,725		42,391
Stock issued under share-based compensation plans	78	11,599						11,599				11,599
Common stock repurchased - share-based compensation plans	(31)	(8,900)						(8,900)				(8,900)
Share-based compensation expense		43,325						43,325				43,325
Repurchases of common stock	(1,502)	(247,584)		(42,393)				(289,977)				(289,977)
Cash dividends declared ($0.195 per common share)				(57,302)				(57,302)				(57,302)
Balance at June 30, 2021	293,703	$	24,201,763	$	2,664,707	$	(172,707)	$	26,693,763	$	156,377	$	26,850,140

See Notes to Unaudited Consolidated Financial Statements.

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GLOBAL PAYMENTS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands, except per share data)


	Number of Shares	Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Global Payments Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2021	284,750	$	22,880,261	$	2,982,122	$	(234,182)	$	25,628,201	$	241,216	$	25,869,417
Net (loss) income				(428,266)				(428,266)		12,851		(415,415)
Other comprehensive loss						(136,996)		(136,996)		(18,832)		(155,828)
Stock issued under share-based compensation plans	1,518	23,619						23,619				23,619
Common stock repurchased - share-based compensation plans	(196)	(27,008)						(27,008)				(27,008)
Share-based compensation expense		85,414						85,414				85,414
Repurchases of common stock	(9,039)	(1,161,712)		(88,282)				(1,249,994)				(1,249,994)
Distributions to noncontrolling interest								—		(14,363)		(14,363)
Cash dividends declared ($0.50 per common share)				(139,315)				(139,315)				(139,315)
Balance at June 30, 2022	277,033	$	21,800,574	$	2,326,259	$	(371,178)	$	23,755,655	$	220,872	$	23,976,527


	Number of Shares	Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Global Payments Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2020	298,332	$	24,963,769	$	2,570,874	$	(202,273)	$	27,332,370	$	154,674	$	27,487,044
Net income				460,271				460,271		4,952		465,223
Other comprehensive income (loss)						29,566		29,566		(3,249)		26,317
Stock issued under share-based compensation plans	1,081	29,304						29,304				29,304
Common stock repurchased - share-based compensation plans	(253)	(50,429)						(50,429)				(50,429)
Share-based compensation expense		80,490						80,490				80,490
Repurchases of common stock	(5,457)	(821,371)		(251,563)				(1,072,934)				(1,072,934)
Cash dividends declared ($0.39 per common share)				(114,875)				(114,875)				(114,875)
Balance at June 30, 2021	293,703	$	24,201,763	$	2,664,707	$	(172,707)	$	26,693,763	$	156,377	$	26,850,140

See Notes to Unaudited Consolidated Financial Statements.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business, consolidation and presentation - We are a leading payments technology company delivering innovative software and services to our customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world. We operate in three reportable segments: Merchant Solutions, Issuer Solutions and Business and Consumer Solutions, which are described in "Note 13—Segment Information." Global Payments Inc. and its consolidated subsidiaries are referred to herein collectively as "Global Payments," the "Company," "we," "our" or "us," unless the context requires otherwise.

These unaudited consolidated financial statements include our accounts and those of our majority-owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated balance sheet as of December 31, 2021 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 but does not include all disclosures required by GAAP for annual financial statements.

In the opinion of our management, all known adjustments necessary for a fair presentation of the results of the interim periods have been made. These adjustments consist of normal recurring accruals and estimates that affect the carrying amount of assets and liabilities. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Use of estimates - The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. In particular, the future magnitude, duration and effects of the COVID-19 pandemic and the ongoing invasion of Ukraine by Russia are difficult to predict at this time, and the ultimate effect could result in additional charges related to the recoverability of assets, including financial assets, long-lived assets and goodwill and other losses. These unaudited consolidated financial statements reflect the financial statement effects based upon management’s estimates and assumptions utilizing the most currently available information.

Recently issued pronouncements not yet adopted

Accounting Standards Update ("ASU") 2021-08— In October 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers and other similar contracts that are accounted for in accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("Topic 606"), at fair value on the acquisition date. ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts, which should generally result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements. This update also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption is permitted, including adoption in an interim period. Adoption during an interim period requires retrospective application to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application. We are evaluating the potential effects of ASU 2021-08 on our consolidated financial statements.

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NOTE 2—ACQUISITION

On June 10, 2021, we acquired Zego, a real estate technology company that provides comprehensive resident experience management software and digital commerce solutions to property managers, primarily in the United States, for cash consideration of approximately $933 million. We accounted for this transaction as a business combination, which generally requires that we record the assets acquired and liabilities assumed at fair value as of the acquisition date. The final estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, were as follows:


	Final Amounts at June 30, 2022
	(in thousands)
Cash and cash equivalents	$	67,374
Accounts receivable	1,017
Identifiable intangible assets	473,000
Property and equipment	575
Other assets	9,051
Accounts payable and accrued liabilities	(71,006)
Deferred income tax liabilities	(10,749)
Other liabilities	(8,010)
Total identifiable net assets	461,252
Goodwill	471,994
Total purchase consideration	$	933,246

During the six months ended June 30, 2022, we made measurement-period adjustments that decreased the amount of deferred income tax liabilities and provisional goodwill by $3.2 million. The decrease in deferred income tax liabilities for the six months ended June 30, 2022 primarily related to finalizing the evaluation of the differences in the bases of assets and liabilities for financial reporting and tax purposes. The effects of the measurement-period adjustments on our consolidated statements of income for the three and six months ended June 30, 2022 were not material.

Goodwill of $472.0 million arising from the acquisition, included in the Merchant Solutions segment, is attributable to expected growth opportunities, potential synergies from combining our existing businesses and an assembled workforce. Substantially all of the goodwill is deductible for income tax purposes.

The following table reflects the estimated fair values of the identified intangible assets of Zego and their respective weighted-average estimated amortization periods:


	Estimated Fair Value		Weighted-Average Estimated Amortization Periods
	(in thousands)		(years)
Customer-related intangible assets	$	208,000	13
Contract-based intangible assets	119,000		20
Acquired technologies	124,000		6
Trademarks and trade names	22,000		15
Total estimated identifiable intangible assets	$	473,000	14

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NOTE 3—BUSINESS DISPOSITIONS

Sale of Merchant Solutions Business in Russia

We sold our Merchant Solutions business in Russia effective April 29, 2022 for cash proceeds of $9 million. During the three months ended June 30, 2022, we recognized a loss of $127.2 million associated with the sale, comprised of the difference between the consideration received and the net carrying amount of the business and the reclassification of $62.9 million of associated accumulated foreign currency translation losses from the separate component of equity. The loss was presented within loss on business dispositions in our consolidated statement of income.

Consumer Business Disposition

During the first quarter of 2022, we commenced a strategic evaluation of the consumer portion of our Business and Consumer Solutions segment. As of June 30, 2022, we committed to a plan to sell the business within one year and were actively marketing the business in its current condition for a price that was reasonable in comparison to its estimated fair value. The assets and liabilities of the consumer business met the criteria for classification as held for sale and are reported at fair value less costs to sell in our consolidated balance sheet as of June 30, 2022. As further discussed in "Note 5— Goodwill and Other Intangible Assets," we recognized a goodwill impairment charge of $833.1 million during the three months ended June 30, 2022 related to the Business and Consumer Solutions reporting unit. We also recognized a charge of $25 million during the three months ended June 30, 2022 to reduce the disposal group to estimated fair value less costs to sell, which is presented within loss on business dispositions in our consolidated statement of income. On July 31, 2022, we entered into a definitive agreement to sell the consumer business for $1 billion. We will provide up to $675 million of seller financing and $80 million of future services in connection with the sale. The transaction is expected to close prior to the end of the first quarter of 2023 and is subject to customary terms and conditions.

For the three and six months ended June 30, 2022, the consumer business contributed $21.9 million and $44.6 million to the Business and Consumer Solutions segment operating income. For the three and six months ended June 30, 2021, the consumer business contributed $33.9 million and $87.6 million to the Business and Consumer Solutions segment operating income.

The major classes of assets presented as held for sale in the consolidated balance sheet as of June 30, 2022, primarily related to the consumer business, include cash of $0.7 million, accounts receivable of $11.6 million, other current assets of $53.6 million, goodwill of $366.4 million, other intangible assets of $651.2 million, property and equipment of $48.9 million, and other noncurrent assets of $20.9 million. The major classes of liabilities presented as held for sale in the consolidated balance sheet as of June 30, 2022 include accounts payable and accrued liabilities of $94.0 million, and other noncurrent liabilities of $4.7 million.

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NOTE 4—REVENUES

The following tables present a disaggregation of our revenues from contracts with customers by geography for each of our reportable segments for the three and six months ended June 30, 2022 and 2021:


	Three Months Ended June 30, 2022
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	1,334,231	$	412,023	$	183,404	$	(14,476)	$	1,915,182
Europe	187,450		114,011		4,228		—		305,689
Asia Pacific	60,035		8,437		—		(8,437)		60,035
	$	1,581,716	$	534,471	$	187,632	$	(22,913)	$	2,280,906


	Three Months Ended June 30, 2021
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	1,202,970	$	379,121	$	224,529	$	(16,768)	$	1,789,852
Europe	166,644		120,974		2,826		—		290,444
Asia Pacific	57,141		5,837		—		(5,837)		57,141
	$	1,426,755	$	505,932	$	227,355	$	(22,605)	$	2,137,437


	Six Months Ended June 30, 2022
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	2,576,851	$	797,266	$	374,836	$	(29,927)	$	3,719,026
Europe	361,505		231,682		8,568		—		601,755
Asia Pacific	116,379		17,024		—		(17,024)		116,379
	$	3,054,735	$	1,045,972	$	383,404	$	(46,951)	$	4,437,160


	Six Months Ended June 30, 2021
	Merchant Solutions		Issuer Solutions		Business and Consumer Solutions		Intersegment Eliminations		Total

	(in thousands)

Americas	$	2,283,440	$	757,164	$	465,163	$	(33,673)	$	3,472,094
Europe	299,578		238,386		5,778		—		543,742
Asia Pacific	111,609		10,633		—		(10,634)		111,608
	$	2,694,627	$	1,006,183	$	470,941	$	(44,307)	$	4,127,444

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The following table presents a disaggregation of our Merchant Solutions segment revenues by distribution channel for the three and six months ended June 30, 2022 and 2021:


	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021

	(in thousands)

Relationship-led	$	827,577	$	778,978	$	1,564,982	$	1,445,890
Technology-enabled	754,139		647,777		1,489,753		1,248,737
	$	1,581,716	$	1,426,755	$	3,054,735	$	2,694,627

ASC Topic 606, Revenues from Contracts with Customers ("ASC 606"), requires that we determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the three and six months ended June 30, 2022 and 2021, substantially all of our revenues were recognized over time.

Supplemental balance sheet information related to contracts from customers as of June 30, 2022 and December 31, 2021 was as follows:


	Balance Sheet Location	June 30, 2022		December 31, 2021

		(in thousands)

Assets:
Capitalized costs to obtain customer contracts, net	Other noncurrent assets	$	312,728	$	291,914
Capitalized costs to fulfill customer contracts, net	Other noncurrent assets	$	131,580	$	113,366

Liabilities:
Contract liabilities, net (current)	Accounts payable and accrued liabilities	$	211,799	$	227,783
Contract liabilities, net (noncurrent)	Other noncurrent liabilities	$	45,066	$	44,502

Net contract assets were not material at June 30, 2022 or at December 31, 2021. Revenue recognized for the three months ended June 30, 2022 and 2021 from contract liability balances at the beginning of each period was $83.2 million and $85.0 million, respectively. Revenue recognized for the six months ended June 30, 2022 and 2021 from contract liability balances at the beginning of each period was $149.8 million and $146.6 million, respectively.

ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations. The purpose of this disclosure is to provide additional information about the amounts and expected timing of revenue to be recognized from the remaining performance obligations in our existing contracts. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at June 30, 2022. However, as permitted, we have elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. Accordingly, the total amount of unsatisfied or partially unsatisfied performance obligations related to processing services is significantly higher than the amounts disclosed in the table below (in thousands):

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Year Ending December 31,

2022	$	514,844
2023	903,194
2024	640,729
2025	510,197
2026	401,120
2027	259,652
2028 and thereafter	388,622
Total	$	3,618,358

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NOTE 5—GOODWILL AND OTHER INTANGIBLE ASSETS

As of June 30, 2022 and December 31, 2021, goodwill and other intangible assets consisted of the following:


	June 30, 2022		December 31, 2021

	(in thousands)

Goodwill	$	23,496,495	$	24,813,274
Other intangible assets:
Customer-related intangible assets	$	9,628,040	$	9,694,083
Acquired technologies	2,860,123		2,962,154
Contract-based intangible assets	1,736,581		2,258,676
Trademarks and trade names