BUSINESS DISPOSITIONS AND DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

BUSINESS DISPOSITIONS AND DISCONTINUED OPERATIONS

Discontinued Operations

As described in "Note 1—Basis of Presentation and Summary of Significant Accounting Policies," our Issuer Solutions business met the criteria to be classified as a held for sale disposal group and a discontinued operation in the second quarter of 2025.

The following table presents the major classes of line items constituting income from discontinued operations, net of tax, in our consolidated statements of income for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024

Revenues	$	639,885	$	613,508	$	1,260,614	$	1,216,243
Operating expenses:
Cost of service	301,191		443,921		745,999		878,122
Selling, general and administrative	85,557		72,352		170,690		148,225
Impairment of goodwill	33,225		—		33,225		—
	419,973		516,273		949,914		1,026,347
Operating income	219,912		97,235		310,700		189,896

Interest and other income	1,079		1,104		2,428		2,025
Interest and other expense	(6,471)		(10,949)		(15,424)		(18,739)
	(5,392)		(9,845)		(12,996)		(16,714)
Income from discontinued operations before income taxes and equity in income of equity method investments	214,520		87,390		297,704		173,182
Income tax expense	180,568		13,145		194,329		25,834
Income from discontinued operations before equity in income of equity method investments	33,952		74,245		103,375		147,348
Equity in income of equity method investments	51		58		89		91
Income from discontinued operations, net of tax	34,003		74,303		103,464		147,439
Income from discontinued operations attributable to noncontrolling interests	(1,148)		(864)		(1,956)		(1,519)
Income from discontinued operations attributable to Global Payments	$	32,855	$	73,439	$	101,508	$	145,920

In connection with the classification of our Issuer Solutions business as assets held for sale, we recognized a goodwill impairment charge of $33.2 million on the basis of a quantitative assessment and comparison of the fair value of the disposal group to its carrying amount. The estimated fair value used in the goodwill impairment assessment was considered a nonrecurring Level 3 measurement of the valuation hierarchy. The goodwill impairment charge is presented within income from discontinued operations, net of tax in our consolidated statements of income for the three and six months ended June 30, 2025.

The following table presents the carrying amounts of the major classes of assets and liabilities of discontinued operations as of June 30, 2025 and December 31, 2024:


	June 30, 2025		December 31, 2024

Cash and cash equivalents	$	182,236	$	181,982
Accounts receivable, net	339,443		299,434
Prepaid expenses and other current assets	367,051		461,412
Current assets of discontinued operations	888,730		942,828
Goodwill	9,505,486		9,508,786
Other intangible assets, net	4,260,730		4,404,561
Property and equipment, net	1,047,813		882,784
Other noncurrent assets	649,509		641,995

Noncurrent assets of discontinued operations	15,463,538		15,438,126

Accounts payable and accrued liabilities	518,845		595,857
Current liabilities of discontinued operations	518,845		595,857
Deferred income taxes	243,862		258,764
Other noncurrent liabilities	238,942		185,700
Noncurrent liabilities of discontinued operations	482,804		444,464

Cash flows related to discontinued operations are included in our consolidated statements of cash flows for the six months ended June 30, 2025 and 2024. The following table presents selected items affecting the statements of cash flows:


	Six Months Ended
	June 30, 2025		June 30, 2024
Depreciation and amortization of property and equipment	$	34,448	$	61,706
Amortization of acquired intangibles	156,824		267,427
Goodwill impairment	33,225		—
Capital expenditures	112,353		83,353

During the six months ended June 30, 2025, Issuer Solutions entered into an agreement to acquire software and related services, of which $37.5 million was financed utilizing a two-year vendor financing arrangement. In addition, during the six months ended June 30, 2025, Issuer Solutions recognized approximately $121.8 million of deferred income tax expense associated with our investment in subsidiaries of the disposal group expected to be divested in the transaction.

Heartland Payroll Solutions, Inc.

In May 2025, we entered into a definitive agreement to divest Heartland Payroll Solutions, Inc. ("Payroll Solutions"), our payroll business included in our Merchant Solutions segment, to Acrisure, LLC ("Acrisure") for approximately $1.1 billion, subject to certain closing adjustments, including up to $75 million of contingent consideration upon the purchaser achieving certain specified returns. In connection with the transaction, we entered into a mutual referral agreement and long-term commercial partnership with Acrisure in which we will continue delivering fully integrated human capital management and payroll offerings to our merchant customers as part of our suite of commerce enablement solutions. The transaction is expected to close in the second half of 2025, subject to regulatory approvals and other customary closing conditions, and result in a gain on sale of business.

Payroll Solutions met the criteria to be classified as a held for sale disposal group in the second quarter of 2025 and all assets of and liabilities of the have been reflected as assets held for sale and liabilities held for sale within our consolidated balance sheet of June 30, 2025. Assets presented as held for sale in the consolidated balance sheet as of June 30, 2025 include goodwill of $479.6 million, cash of $255.3 million and other assets of $170.5 million. Liabilities presented as held for sale in the consolidated balance sheet as of June 30, 2025 are principally accounts payable and accrued liabilities.

AdvancedMD, Inc.

In December 2024, we completed the sale of AdvancedMD, Inc. ("AdvancedMD") for approximately $1.1 billion, subject to certain closing adjustments, including up to $125 million of contingent consideration upon the purchaser achieving certain specified returns. AdvancedMD is a provider of software-as-a-service solutions to small-to-medium sized ambulatory physician practices in the United States ("U.S."), and was included in our Merchant Solutions segment prior to disposition. We recognized a gain on the sale of $273.1 million during the year ended December 31, 2024 and an additional gain on sale of $4.3 million during the six months ended June 30, 2025.