Payment of contingent consideration in business combination

[Table of Contents](#i754bc30884284e56b9b1a914458fa36e_7)GLOBAL PAYMENTS INC.UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | Nine Months Ended |
|  | September 30, 2022 |  | September 30, 2021 |
| Cash flows from operating activities: |  |  |  |
| Net (loss) income | $ | (115,250) |  |  | $ | 770,686  |  |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |  |  |  |
| Depreciation and amortization of property and equipment | 299,348  |  |  | 292,230  |  |
| Amortization of acquired intangibles | 962,413  |  |  | 973,948  |  |
| Amortization of capitalized contract costs | 81,052  |  |  | 68,112  |  |
| Share-based compensation expense | 122,465  |  |  | 146,097  |  |
| Provision for operating losses and credit losses | 87,071  |  |  | 73,286  |  |
| Noncash lease expense | 63,211  |  |  | 80,371  |  |
| Deferred income taxes | (281,376) |  |  | (136,004) |  |
| Equity in income of equity method investments, net of tax | (74,074) |  |  | (94,261) |  |
| Facilities exit charges | 27,662  |  |  | —  |  |
| Distribution received on investments | 8,212  |  |  | 26,757  |  |
| Impairment of goodwill | 833,075  |  |  | —  |  |
| Loss on business dispositions | 201,144  |  |  | —  |  |
| Other, net | (3,273) |  |  | (6,790) |  |
| Changes in operating assets and liabilities, net of the effects of business combinations: |  |  |  |
| Accounts receivable | (107,908) |  |  | (123,370) |  |
| Settlement processing assets and obligations, net | (117,989) |  |  | 28,242  |  |
| Prepaid expenses and other assets | (224,529) |  |  | (185,973) |  |
| Accounts payable and other liabilities | (226,746) |  |  | 114,279  |  |
| Net cash provided by operating activities | 1,534,508  |  |  | 2,027,610  |  |
| Cash flows from investing activities: |  |  |  |
| Business combinations and other acquisitions, net of cash acquired | (24,969) |  |  | (946,377) |  |
| Capital expenditures | (463,357) |  |  | (350,745) |  |
| Effect on cash from sale of business | (29,755) |  |  | —  |  |
| Proceeds from sale of investments | 31,046  |  |  | —  |  |
| Other, net | 101  |  |  | 1,248  |  |
| Net cash used in investing activities | (486,934) |  |  | (1,295,874) |  |
| Cash flows from financing activities: |  |  |  |
| Net (repayments of) borrowings from settlement lines of credit | (2,770) |  |  | 244,858  |  |
| Proceeds from long-term debt | 9,124,449  |  |  | 3,909,988  |  |
| Repayments of long-term debt | (7,193,661) |  |  | (2,434,805) |  |
| Payments of debt issuance costs | (44,360) |  |  | (8,569) |  |
| Repurchases of common stock | (2,139,731) |  |  | (1,833,689) |  |
| Proceeds from stock issued under share-based compensation plans | 33,776  |  |  | 38,570  |  |
| Common stock repurchased - share-based compensation plans | (38,366) |  |  | (84,659) |  |
| Distributions to noncontrolling interests | (17,729) |  |  | —  |  |
| Contribution from a noncontrolling interest | —  |  |  | 46,320  |  |
| Payment of contingent consideration in business combination | (15,726) |  |  | —  |  |
| Purchase of capped calls related to issuance of convertible notes | (302,375) |  |  | —  |  |
| Dividends paid | (208,082) |  |  | (188,203) |  |
| Net cash used in financing activities | (804,575) |  |  | (310,189) |  |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (208,529) |  |  | (42,704) |  |
| Increase in cash, cash equivalents and restricted cash | 34,470  |  |  | 378,843  |  |
| 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 | $ | 2,157,493  |  |  | $ | 2,468,614  |  |

    See Notes to Unaudited Consolidated Financial Statements. 7
