10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2013

Commission file number            1-10254

TOTAL SYSTEM SERVICES, INC.

(Exact name of registrant as specified in its charter)

Georgia	58-1493818
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One TSYS Way Columbus, Georgia	31901
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (706) 649-2310

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $.10 Par Value	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    YES  x    NO  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    YES  ¨    NO  x

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, and (2) has been subject to such filing requirements for the past 90 days.    YES  x    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  ¨

        Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

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

Large accelerated filer	x	Accelerated Filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  x

As of June 30, 2013, the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was approximately $4,469,154,000 based on the closing sale price as reported on the New York Stock Exchange.

As of February 21, 2014, there were 187,858,119 shares of the registrant’s common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Incorporated Documents	Form 10-K Reference Locations
Portions of the Annual Report to Shareholders for the year ended December 31, 2013 (“Annual Report”)	Parts I, II, III and IV
Portions of the 2014 Proxy Statement for the Annual Meeting of Shareholders to be held May 1, 2014 (“Proxy Statement”)	Part III

Table of Contents

		Page
Part I
Safe Harbor Statement			1
Item 1.	Business		1
Item 1A.	Risk Factors		6
Item 1B.	Unresolved Staff Comments		16
Item 2.	Properties		16
Item 3.	Legal Proceedings		16
Item 4.	Mine Safety Disclosures		16
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		16
Item 6.	Selected Financial Data		17
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		17
Item 8.	Financial Statements and Supplementary Data		19
Item 9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure		19
Item 9A.	Controls and Procedures		19
Item 9B.	Other Information		20
Part III
Item 10.	Directors, Executive Officers and Corporate Governance		20
Item 11.	Executive Compensation		20
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		21
Item 13.	Certain Relationships and Related Transactions, and Director Independence		21
Item 14.	Principal Accountant Fees and Services		21
Part IV
Item 15.	Exhibits and Financial Statement Schedules		21

PART I

Safe Harbor Statement

We have included or incorporated by reference in this Annual Report on Form 10-K, and from time to time our management may make, statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which by their nature are inherently uncertain and outside our control. These statements include statements other than historical information or statements of current condition and may relate to our future plans, objectives and results, among other things, and also include (without limitation) statements made in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this annual report. It is possible that our actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Important factors that could cause actual results to differ from those in the forward-looking statements include, among others, those discussed under “Risk Factors” in Part I, Item 1A of this annual report and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this annual report.

Accordingly, you are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements to reflect the impact of circumstances or events that arise after the dates they are made, whether as a result of new information, future events or otherwise except as required by applicable law. You should, however, consult further disclosures we may make in future filings of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments thereto.

Item 1. Business

Business. Based in Columbus, Georgia, and traded on the New York Stock Exchange under the symbol “TSS,” we are a global payment solutions provider that provides services to financial and nonfinancial institutions. The services we provide are divided into four operating segments, North America Services, which accounted for 46% of our revenues in 2013, Merchant Services, which accounted for 25% of our revenues in 2013, International Services, which accounted for 19% of our revenues in 2013, and NetSpend, which accounted for 10% of our revenues in 2013. TSYS acquired NetSpend Holdings, Inc. (“NetSpend”) on July 1, 2013. NetSpend provides general purpose reloadable (“GPR”) prepaid debit and payroll cards and alternative financial service solutions to the underbanked and other consumers in the U.S.

Seasonality. Due to the somewhat seasonal nature of the credit card industry, our revenues and results of operations have generally increased in the fourth quarter of each year because of increased transaction and authorization volumes during the traditional holiday shopping season.

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Intellectual Property. Our intellectual property portfolio is a component of our ability to be a leading provider of transaction processing and other payment-related services. We diligently protect and work to build our intellectual property rights through patent, servicemark and trade secret laws. We also use various licensed intellectual property to conduct our business. In addition to using our intellectual property in our own operations, we grant licenses to certain of our clients to use our intellectual property.

Major Customers. A significant amount of our revenues is derived from long-term contracts with large clients. The loss of one of our large clients could have a material adverse effect on our financial position, results of operations and cash flows. See “Major Customer” and “Operating Segments” under the “Financial Review” Section on pages 16 through 21, and Note 21 on pages 66 through 69 of the Annual Report which are incorporated in this document by reference.

Competition. We encounter vigorous competition in providing electronic payment services from several different sources. TSYS’ business is primarily derived from third-party processing for issuers and merchant acquirers. Most of the national market in third party processors is presently being provided by approximately three vendors. We believe that as of December 31, 2013 we are the largest third party card processor in the United States. In addition, we compete with banks and acquirers who choose to process payments in house through proprietary systems and with software vendors which provide their products to institutions which process in house. We are presently encountering, and in the future anticipate continuing to encounter, substantial competition from data processing, bankcard computer service firms and third-party software vendors within the United States and from certain international processors, in-country providers and third-party software vendors with respect to our International Services segment. In addition, payments networks such as Visa, MasterCard and Discover are increasingly offering products and services that compete with our products and services.

Based upon available market share data that includes cards processed in house, we believe that during 2013 we provided issuer processing services for approximately 28% of the domestic consumer credit card accounts in market, 59% of the domestic commercial credit cards issued in market, 84% of the Canadian credit card accounts in market and 21% of credit card accounts in TSYS’ Home European Markets (UK, Ireland, Netherlands, Italy, Germany and Switzerland). With respect to the Merchant Services Segment, we provide third party processing services to merchant acquirers and Independent Sales Organizations (“ISOs”) and we are also a direct merchant acquirer. We believe that we are the second largest processor of merchant accounts and process transactions for approximately 22% of all bankcard accepting merchant locations in the United States. Our direct merchant acquirer business is ranked as the 7^th largest merchant acquirer based on active merchant outlets according to The Nilson Report dated March 2013. As a result of the acquisition of NetSpend, TSYS is now the 2^nd largest program manager of GPR prepaid cards according to Mercator Advisory Group, as ranked by dollars loaded.

Our major competitor in the card processing industry is First Data Resources, LLC, a wholly owned subsidiary of First Data Corporation, which provides card processing services. The principal methods of competition between us and First Data Resources are price, system performance and reliability, breadth of features and functionality, disaster recovery capabilities and business

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continuity preparedness, data security, scalability and flexibility of infrastructure and servicing capability. Other affiliates of First Data Corporation also compete with us with respect to the provision of merchant services and GPR prepaid card services.

Backlog of Accounts. As of December 31, 2013, we had a pipeline of approximately 96 million accounts which are expected to be converted by December 31, 2014.

Regulation and Examination. Government regulation affects key aspects of our business, in the U.S. as well as internationally. In addition, we are registered with Visa, MasterCard, American Express and the Discover Network as a service provider and are subject to their respective rules which subject us to a variety of fines or penalties that may be levied by the card networks for certain acts or omissions. Set forth below is a brief summary of some of the significant laws and regulations that apply to us. These descriptions are not exhaustive and are qualified in their entirety by reference to the particular statutory or regulatory provision.

Banking Laws and Regulations. Because we provide electronic payment processing services to banks and other financial institutions, we are subject to examination by the Federal Financial Institutions Examination Council (“FFIEC”), an interagency body comprised primarily of federal banking regulators, and also subject to examination by the various state financial regulatory agencies which supervise and regulate the financial institutions for which we provide electronic payment processing and other payment related services. The FFIEC examines large data processors in order to identify and mitigate risks associated with systemically significant service providers, including specifically the risks they may pose to the banking industry.

Money Transmitter and Payment Instrument Laws and Regulations. Our NetSpend business is subject to money transfer and payment instrument licensing regulations. We have obtained licenses to operate as a money transmitter in 44 states and the District of Columbia, and have an application pending in one state. The remaining U.S. jurisdictions either do not currently regulate money transmitters or have rendered a regulatory determination or a legal interpretation that the money services laws of that jurisdiction do not require us to obtain a license in connection with the conduct of our business.

In those states where we are licensed as a money transmitter, our NetSpend business is subject to direct supervision and regulation by the relevant state banking departments or similar agencies charged with enforcement of the money transmitter statutes and we must comply with various requirements, such as those related to the maintenance of a certain level of net worth, surety bonding, selection and oversight of our authorized agents, maintaining permissible investments in an amount equal to our outstanding payment obligations, recordkeeping and reporting and disclosures to consumers. Our NetSpend business is also subject to periodic examinations by the relevant licensing authorities, which may include reviews of our compliance practices, policies and procedures, financial position and related records, various agreements that we have with our issuing banks, distributors and other third parties, privacy and data security policies and procedures and other matters related to our business.

Privacy and Information Security Regulation. Aspects of our business are also subject, directly or indirectly, to privacy regulation in the United States, the European Union and elsewhere. For example, in the United States, we and our financial institution clients are, respectively, subject to the Federal Trade Commission’s and the federal banking regulators’ privacy and information safeguarding requirements under the Gramm-Leach-Bliley Act. These requirements limit the

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manner in which personal information may be collected, stored, used and disclosed. The Federal Trade Commission’s information safeguarding rules require us to develop, implement and maintain a written, comprehensive information security program containing safeguards that are appropriate for our size and complexity, the nature and scope of our activities and the sensitivity of any customer information at issue. Our financial institution clients in the United States are subject to similar requirements under the guidelines issued by the federal banking regulators. As part of their compliance with these requirements, each of our U.S. financial institution clients is expected to have a program in place for responding to unauthorized access to, or use of, customer information that could result in substantial harm or inconvenience to customers.

Anti-money Laundering and Counter Terrorist Regulation. The Financial Crimes Enforcement Network of the U.S. Department of the Treasury (“FinCEN”) has issued a rule regarding the applicability of the Bank Secrecy Act’s anti-money laundering provisions to “prepaid access programs.” This rulemaking clarifies the anti-money laundering obligations for entities, such as our NetSpend business and its distributors, engaged in the provision and sale of prepaid access devices like our GPR prepaid debit cards. Our NetSpend business has registered with FinCEN as a money services business. This registration results in our having direct responsibility to maintain and implement an anti-money laundering compliance program.

As are all U.S. persons, we are also subject to regulations imposed by the U.S. Treasury Office Department of Foreign Assets Control (“OFAC”) which prohibit or restrict financial and other transactions with specified countries and designated individuals and entities such as terrorists and narcotics traffickers. We have procedures and controls in place which are designed to protect against having direct business dealings with such prohibited countries, individuals or entities. We also have procedures and controls in place which are designed to allow our processing clients to protect against having direct business dealings with such prohibited countries, individuals or entities.

The Dodd-Frank Act. We and the rest of the financial services industry continue to experience increased legislative and regulatory scrutiny, including the enactment of additional legislative and regulatory initiatives such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Reform Act”). This legislation, which provides for significant financial regulatory reform, may have a significant and negative impact on us and our clients, which could impact TSYS’ earnings through fee reductions, higher costs (both regulatory and implementation) and new restrictions on our operations. The Reform Act, among other things, provides for the regulation and oversight by the Board of Governors of the Federal Reserve System (“Board”) of debit interchange fees that are typically paid by acquirers and charged or received by a payment card network for the purpose of compensating an issuer for its involvement in an electronic debit transaction. As of October 1, 2011, in accordance with the Reform Act, the Board capped the maximum U.S. debit interchange fee assessed for debit cards issued by large financial institutions at twenty-one cents plus five basis points, before applying a fraud prevention adjustment of up to an additional one cent. In July 2013, a federal court invalidated these rules and ordered the Board to revise them. However, that order has been stayed, and the rules have been left in place pending the resolution of an expedited appeal filed by the Board with the federal appeals court. It remains difficult to predict the impact that the debit interchange regulations will ultimately have on us, but we do not expect that they will have a significant negative impact on our business.

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The Reform Act also created a new Consumer Financial Protection Bureau (“CFPB”) with responsibility for regulating consumer financial products and services and enforcing most federal consumer protection laws in the area of financial services, including consumer credit and the prepaid card industry. The CFPB has announced its intent to propose regulations regarding the prepaid industry, although no rule has yet been published. The CFPB’s future actions may make payment card or product transactions generally less attractive to card issuers, acquirers, consumers and merchants and thus negatively impact our business. In addition, the Reform Act created a Financial Stability Oversight Council that has the authority to determine whether nonbank financial companies such as TSYS should be supervised by the Board because they are systemically important to the U.S. financial system. Early indications suggest that the Financial Stability Oversight Council is not focused on regulating entities such as TSYS. However, any such future designation would result in increased regulatory burdens on our business.

State Wage Payment Laws and Regulations. The use of payroll card programs as a means for an employer to remit wages or other compensation to its employees or independent contractors is governed by state labor laws related to wage payments. The paycard portion of our NetSpend business includes payroll cards and convenience checks and is designed to allow employers to comply with applicable state wage and hour laws. Most states permit the use of payroll cards as a method of paying wages to employees, either through statutory provisions allowing such use or, in the absence of specific statutory guidance, the adoption by state labor departments of formal or informal policies allowing for their use. Nearly every state allowing payroll cards places certain requirements and/or restrictions on their use as a wage payment method, the most common of which involve obtaining the prior written consent of the employee, limitations on fees and disclosure requirements.

Employees. As of December 31, 2013, we had approximately 9,600 employees.

Available Information. Our website address is www.tsys.com. You may obtain free electronic copies of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports in the Investor Relations section of our website under the heading “SEC Filings.” These reports are available on our website as soon as reasonably practicable after we electronically file them with the Securities and Exchange Commission.

We have adopted a Code of Business Conduct and Ethics for our directors, officers and employees and have also adopted Corporate Governance Guidelines. Our Code of Business Conduct and Ethics, Corporate Governance Guidelines and the charters of our board committees are available in the Corporate Governance section of our website at www.tsys.com under “Investor Relations” then “Corporate Governance.”

For more information about our business see the “Financial Overview” Section on pages 7 through 9, the “Financial Review” Section on pages 9 through 31 and Note 1, Note 8, Note 15, Note 21, Note 23 and Note 26 of Notes to Consolidated Financial Statements on pages 37 through 46, pages 49 and 50, pages 56 through 58, pages 66 through 69, pages 70 through 76, and page 76 of the Annual Report which are incorporated in this document by reference.

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Item 1A. Risk Factors

This section highlights specific risks that could affect our business and us. Although this section attempts to highlight key factors, please be aware that other risks may prove to be important in the future. New risks may emerge at any time and we cannot predict such risks or estimate the extent to which they may affect our financial performance. In addition to the factors discussed elsewhere or incorporated by reference in this report, among the other factors that could cause actual results to differ materially are the following:

Consolidation among financial institutions and retail clients, including the merger of TSYS clients with entities that are not TSYS clients or the sale of portfolios by TSYS clients to entities that are not TSYS clients, or financial institutions which are TSYS clients otherwise ceasing to exist, could materially impact our financial position and results of operation.

Consolidation among financial institutions, particularly in the area of credit card operations, and consolidation in the retail industry, continues to be a major risk. Specifically, we face the risk that our clients may merge with entities that are not our clients, our clients may sell portfolios to entities that are not our clients or our financial institution clients may otherwise cease to exist, thereby negatively impacting our existing agreements and projected revenues with these clients. In addition, consolidation among financial institutions has led to an increasingly concentrated client base at TSYS which results in a changing client mix toward larger clients. Continued consolidation among financial institutions could increase the bargaining power of our current and future clients and further increase our client concentration. Consolidation among financial institutions and retail clients, the nationalization of financial institutions or the seizure by banking regulators of financial institutions and the resulting loss of any significant client by us could have a material adverse effect on our financial position and results of operations.

If we do not successfully renew or renegotiate our agreements with our clients, our business will suffer.

A significant amount of our revenues is derived from long-term contracts with large clients. The financial position of these clients and their willingness to pay for our products and services are affected by general market positions, competitive pressures and operating margins within their industries. When our long-term contracts expire, the time of renewal or renegotiation presents our clients with the opportunity to consider other providers, transition all or a portion of the services we provide in-house or seek lower rates for our services. The loss of our contracts with existing clients or renegotiation of contracts at reduced rates or reduced service levels could have a material adverse effect on our financial position and results of operation.

Economic conditions could adversely affect our business.

A significant portion of our revenues is derived from the number of consumer credit transactions that we process which may be affected by, among other things, overall economic conditions. The payment processing industry depends heavily upon the overall level of consumer, business and government spending to support the necessary volume of payment transactions. Any change in economic factors, including a sustained deterioration in general economic conditions or consumer confidence, particularly in the United States or Europe, or increases in interest rates in key countries in which we operate may adversely affect our financial performance by reducing the

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number of transactions involving credit, debit, GPR prepaid debit and other payment-related cards. Future reductions in consumer spending through credit, debit, GPR prepaid debit and other payment-related card usage would likely have a material adverse effect on our financial position and results of operations.

Security and privacy breaches of our systems may damage client relations, our reputation and expose us to financial liability.

The uninterrupted operation of our processing systems and the confidentiality of the client/consumer information that resides on our systems is critical to the successful operation of our business. We have security, backup and recovery systems in place, as well as business continuity plans designed to ensure our systems will not be inoperable. Recently, a number of companies have experienced security breaches in which credit and debit card information has been stolen. Although we have what we believe to be sufficient security around our systems to prevent unauthorized access, third parties may have the technology or know-how to breach the security of the information transmitted in connection with payment processing transactions, and our security measures may not effectively prohibit others from obtaining improper access to this information. An information breach in the system and loss of confidential information could have a longer and more significant impact on our business than a hardware failure. We electronically store personal information, such as credit card numbers and related information, about consumers who are customers of our clients. If we are unable to protect, or our clients or consumers perceive that we are unable to protect, the security and privacy of our electronic transactions, our growth could be materially adversely affected. A security or privacy breach or a system failure may:

• cause our clients and consumers to lose confidence in our services;

• harm our reputation;

• expose us to financial liability, both as a result of litigation and contractually;

• cause us to modify our protective measures which would increase our expenses; and

• increase our expenses from potential remediation costs.

Our financial exposure from the items referenced above may either not be insured against or not fully covered through any insurance maintained by us. In addition, our ability to attract and retain clients and employees could be adversely affected to the extent our reputation is damaged. While we believe we use proven applications designed for data security and integrity to process electronic transactions, there can be no assurance that our use of these applications will be sufficient to counter all current and emerging technology threats designed to breach our systems in order to gain access to confidential information or our intellectual property or assurance that our use of these applications will be sufficient to address the security and privacy concerns of existing and potential clients and consumers.

The ability to adapt technology to changing industry and client needs or trends may affect our competitiveness or demand for our products, which may adversely affect our financial results.

The payment processing market in which we compete is subject to rapid and significant technological changes, developing industry standards and changing client needs and preferences. Also, our clients continue to adopt new technology for business and personal uses. We must anticipate and respond to these industry and client changes in order to remain competitive. If we are unable to effectively respond to these changes, the competitiveness of and demand for our

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services will be materially impaired and may result in our services being removed from the payments value chain. Our inability to respond to new competitors and technological advancements could have a material adverse effect on our financial position and results of operations.

The signing of new significant clients is often costly and time consuming and if we are unable to successfully close these sales our financial results may be adversely affected.

We incur significant up-front expenses and expend substantial time, effort and other resources prior to signing significant payment processing clients. Potential clients generally conduct detailed evaluations of available processing systems and, after we have expended significant resources educating the potential client on our systems, ultimately may determine not to enter into a contract with us. If we are unsuccessful in signing new clients after expending significant expense, time and resources, it could have an adverse effect on our financial results and divert management’s attention from other potential and existing clients. In addition, we incur significant up-front expenses prior to converting a significant client to our processing systems. In the event we enter into a processing contract with a significant client, these expenses will directly affect our earnings results.

The market for our electronic payment services is evolving and may not continue to develop or grow rapidly enough for us to maintain and increase our profitability.

If the number of electronic payment transactions does not continue to grow or if businesses or consumers do not continue to adopt our services, it could have a material adverse effect on the profitability of our business, financial position and results of operations. We believe future growth in the electronic payments market will be driven by the cost, ease-of-use, and quality of products and services offered to businesses. In order to consistently increase and maintain our profitability, businesses and consumers must continue to adopt our services.

We may not convert and deconvert client’s portfolios as scheduled.

The timing of the conversion of card portfolios of new payment processing clients to our processing systems and the deconversion of existing clients to other systems impacts our revenues and expenses. There is no guarantee that conversions and deconversions will occur as scheduled and this may have a material adverse effect on our financial position and results of operations.

Acquisitions and integrating such acquisitions create certain risks and may affect our financial results.

We have acquired businesses both in the United States and internationally and will continue to explore opportunities for strategic acquisitions in the future. For example, in July 2013, we announced our acquisition of NetSpend. The acquisition and integration of businesses such as NetSpend involve a number of risks. The core risks are in the areas of valuation (negotiating a fair price for the business based on inherently limited diligence) and integration (managing the complex process of integrating the acquired company’s people, products, technology and other assets so as to realize the projected value of the acquired company and the synergies projected to be realized in connection with the acquisition). Other risks include the inaccurate assessment of disclosed liabilities, inconsistencies in standards, controls, procedures and policies, including internal control and regulatory requirements under the Sarbanes-Oxley Act of 2002, and personnel turnover.

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The success of any future acquisitions will depend, in part, on our ability to realize the anticipated benefits from integrating the acquired business with our existing businesses. The integration process may be complex, costly and time consuming. The process of integrating the operations of an acquisition could cause an interruption of, or loss of momentum in, the activities of one or more of our combined businesses and the possible loss of key personnel. The diversion of management’s attention and any delays or difficulties encountered in connection with acquisitions and the integration of the acquired companies’ operations could have an adverse effect on our financial position and results of operations.

In addition, the success of any acquisition will depend, in part, on the combined company’s ability to realize the anticipated benefits from the acquisition, including anticipated synergies and costs savings. Furthermore, in order to finance acquisitions, we may incur significant amounts of additional debt.

Finally, any international acquisitions often involve additional or increased risks including for example:

• managing geographically separated organizations, systems and facilities;

• integrating personnel with diverse business backgrounds and organizational cultures;

• complying with foreign regulatory requirements;

• fluctuations in currency exchange rates;

• difficulty entering new foreign markets due to, among other things, customer acceptance and business knowledge of these new markets; and

• general economic and political conditions.

Our business may be adversely affected by risks associated with foreign operations and, as we continue to expand internationally, we may incur higher than anticipated costs and will become more susceptible to these risks.

We provide services to our clients worldwide. As a result, our revenues derived from international operations are subject to risk of loss from foreign currency exchange rates. Revenue and profit generated by international operations will increase or decrease compared to prior periods as a result of changes in foreign currency exchange rates. We have not entered into foreign exchange forward contracts to mitigate the risks associated with our foreign operations. In addition, we may become subject to exchange control regulations that might restrict or prohibit the conversion of our foreign currency into U.S. dollars. The occurrence of any of these factors could decrease the value of revenues we receive from international operations and adversely affect our financial position and results of operations. In addition, our revenues derived from international operations are subject to risk of loss as a result of social instability and unfavorable political or diplomatic developments which could negatively impact our financial results.

We may also incur higher than anticipated costs as we expand internationally and grow our international client base. If we are unable to successfully manage these expenses as our business expands, our financial position and results of operations could be negatively impacted.

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The costs and effects of litigation, investigations or similar matters, or adverse facts and developments related thereto, could materially affect our financial position and results of operations.

We are involved in various litigation matters and from time to time may be involved in governmental or regulatory investigations or similar matters arising out of our business. Our insurance may not cover all claims that may be asserted against it, and any claims asserted against us, regardless of merit or eventual outcome, may harm our reputation. Should the ultimate judgments or settlements in any pending litigation or future litigation or investigation significantly exceed our insurance coverage, they could have a material adverse effect on our financial position and results of operations. In addition, we may not be able to obtain appropriate types or levels of insurance in the future, nor may we be able to obtain adequate replacement policies with acceptable terms, if at all. For more information about our legal proceedings, see Item 3 of this annual report.

We operate in a competitive business environment, and if we are unable to compete effectively our financial position may be adversely affected.

The market for payment processing services is intensely competitive. Our competitors vary in size and in the scope and breadth of the services they offer. We face direct competition from third parties, and since certain of our larger potential clients develop their key applications in-house and therefore view their system requirements from a make-versus-buy perspective, we often compete against our potential clients’ in-house capacities. In addition, we expect that the markets in which we compete will continue to attract new competitors and new technologies. There can be no assurance that we will be able to compete successfully against current or future competitors or that the competitive pressures we face in the markets in which we operate will not materially adversely affect our financial position and results of operations.

The market for prepaid debit cards and alternative financial services is highly competitive and competition is increasing as more companies endeavor to address the needs of underbanked consumers.

With our 2013 acquisition of NetSpend, we added an aspect to our business to complement our previous presence in the prepaid processing space to include GPR prepaid debit and payroll cards and alternative financial services. The alternative financial services industry, including the prepaid card market, is subject to intense and increasing competition. Our NetSpend business directly competes with a number of companies that market open-loop prepaid debit cards through retail and online distribution. In addition, we compete with banks that offer demand deposit accounts and other traditional issuers of debit cards. We also compete against large retailers who are seeking to integrate more financial services into their product offerings. We anticipate increased competition from alternative financial services providers who are often well-positioned to service the underbanked and who may wish to develop their own prepaid debit card programs. The increased desire of banks, retailers and alternative financial services providers to develop and promote prepaid debit card programs could have an adverse effect on the NetSpend portion of our business. We also face strong price competition. To stay competitive, we may have to increase the incentives that we offer to our distributors and decrease the prices of our products and services, which could adversely affect our operating results.

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Our NetSpend business relies on certain relationships with issuing banks and distributors. The loss of such relationships or if we are unable to maintain such relationships on terms that are favorable to us, our business, financial position and operating results may be materially adversely affected.

Our NetSpend business relies on arrangements we have with issuing banks to provide us with critical products and services, including the FDIC-insured depository accounts tied to the cards we manage, access to the ATM networks, membership in the card associations and network organizations (collectively, the “Networks”) and other banking services. The majority of our active NetSpend cards are issued through Meta Payment Systems (“MetaBank”). If our relationship with MetaBank deteriorates, it could have an adverse impact on the NetSpend business. If any material adverse event were to affect MetaBank, including as a result of the directives issued by the Office of the Comptroller of the Currency against MetaBank, or one or more of our other issuing banks or if we were to lose MetaBank or one or more of the other issuing banks, we would be forced to find an alternative provider of these critical banking services for our NetSpend business. It may not be possible to find a replacement bank on terms that are acceptable to us or at all. Any change in the issuing banks could disrupt the business or result in arrangements with new banks that are less favorable to us than those we have with our existing issuing banks, either of which could have a material adverse impact on our results of operations and our financial position.

Furthermore, our NetSpend business depends in large part on establishing agreements with distributors, primarily alternative financial services providers as well as grocery and convenience stores and other traditional retailers. Some of these distributors may endeavor to internally develop their own prepaid debit card programs or enter into exclusive relationships with our competitors to distribute their products. The loss of, or a substantial decrease in revenues from, one or more of our top distributors could have a material adverse effect on the NetSpend business and our operating results.

Changes in the laws, regulations, policies, credit card association rules or other industry standards affecting our business may impose costly compliance burdens and negatively impact our business.

There may be changes in the laws, regulations, credit card association rules or other industry standards that affect our operating environment in substantial and unpredictable ways in the U.S. as well as internationally. Changes to statutes, regulations or industry standards, including interpretation and implementation of statutes, regulations or standards, could increase the cost of doing business or affect the competitive balance. Regulation of the payments industry has increased significantly in recent years. Failure to comply with laws, rules and regulations or standards to which we are subject in the U.S. as well as internationally, including the card network rules and rules with respect to privacy and information security, may result in the suspension or revocation of a license or registration, the limitation, suspension or termination of service, and the imposition of fines, sanctions or other penalties, which could have a material adverse effect on our financial position and results of operations, as well as damage our reputation. Even if such a change to statutes, regulations or industry standards does not directly apply to us, the effects of such a change on our financial institution clients could result in material, indirect effects on the way we operate or the costs to operate our business and impair the demand for our services amongst our financial institution clients.

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We and the rest of the financial services industry continue to experience increased legislative and regulatory scrutiny, including the enactment of additional legislative and regulatory initiatives such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Reform Act”). This legislation provides for significant financial regulatory reform. The Reform Act, among other things, provides for the regulation and oversight by the Board of Governors of the Federal Reserve System (“Board”) of debit interchange fees that are typically paid by acquirers and charged or received by a payment card network for the purpose of compensating an issuer for its involvement in an electronic debit transaction. The Reform Act also created a new Consumer Financial Protection Bureau (“CFPB”) with responsibility for regulating consumer financial products and services and enforcing most federal consumer protection laws in the area of financial services, including consumer credit and the prepaid card industry. The CFPB recently mandated that supervised financial institutions, including our clients, are required to ensure that their service providers are in compliance with applicable federal consumer laws, which may increase regulatory oversight and our cost of doing business. In addition, the CFPB has announced its intent to propose regulations regarding the prepaid industry, which regulations may have a negative impact on the revenues and financial position of our NetSpend business. Furthermore, the Reform Act created a Financial Stability Oversight Council that has the authority to determine whether nonbank financial companies such as TSYS should be supervised by the Board because they are systemically important to the U.S. financial system. Any such designation would result in increased regulatory burdens on our business. The overall impact of the Reform Act on TSYS is difficult to estimate. Current and future regulations as a result of the Reform Act may adversely affect our business or operations, directly or indirectly (if, for example, our clients’ businesses and operations are adversely affected).

With respect to our NetSpend business, because each distributor offers prepaid cards and reload services as an agent of NetSpend, our issuing banks or another third party, we do not believe that the distributors are themselves required to become licensed as money transmitters in order to engage in such activity. However, there is a risk that a federal or state regulator will take a contrary position and initiate enforcement or other proceedings against a distributor, us, our issuing banks or our other distribution partners. In addition, we understand that state banking departments, which are charged with regulating the business of money transmission, have traditionally taken the position that the offering of payroll cards does not constitute money transmission and so we are not required to obtain a state money transmission license in order to engage in this activity. However, there is a risk that a federal or state regulator will take a contrary position and initiate enforcement or other proceedings against us or the issuing banks. If the relevant party is unsuccessful in making a persuasive argument that it should not be subject to such licensing requirements, and is therefore deemed to be in violation of one or more of the state money transmitter statutes, it could result in the imposition of fines, the suspension of the relevant party’s ability to offer some or all of our GPR cards and related services in the relevant jurisdiction, civil liability and criminal liability, each of which could negatively impact our financial position and results of operations. Furthermore, if the federal government or one or more state governments impose additional legislative or regulatory requirements on our NetSpend business, the issuing banks or the distributors, or prohibit or limit the activities of our NetSpend business as currently conducted, we may be required to modify or terminate some or all of our NetSpend products and services offered in the relevant jurisdiction or certain of the issuing banks may terminate their relationship with us.

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In addition, we are subject to tax laws in each jurisdiction where we do business. Changes in tax laws or their interpretations could decrease the value of revenues we receive, the value of tax losses and tax credits carry forwards recorded on our balance sheet and the amount of our cash flow and have a material adverse effect on our financial position and results of operations. Furthermore, changes in accounting policies can significantly affect how we calculate expenses and earnings.

We rely on financial institution sponsors in order to process Visa, MasterCard, American Express and Discover transactions. If these sponsorships are terminated and we are unable to secure new sponsors our business and results of operations will be materially and adversely affected.

In order to provide our Visa, MasterCard, American Express and Discover transaction processing services, we must be either a direct participant or be registered as a merchant processor or service provider of Visa, MasterCard, American Express and Discover. Registration as a merchant processor or service provider is dependent upon our being sponsored by member banks of these credit card companies. If our sponsor banks should stop providing sponsorship for us, we would need to find another financial institution to provide those services or we would need to attain direct participation, either of which could prove to be difficult and expensive. If we are unable to find a replacement financial institution to provide sponsorship or attain direct participation, we may no longer be able to provide processing services to the affected customers, which would have a material adverse effect on our business and results of operations.

The providers of alternative financial services that distribute our NetSpend products are subject to extensive and complex federal and state regulations and new regulations and/or changes to existing regulations could adversely affect their ability to offer GPR cards through their locations, which in turn could have an adverse impact on our business.

The distributors include a large number of companies in industries that are highly regulated, such as payday lending and it is possible that changes in the legal regime governing such businesses could limit their ability to distribute our NetSpend products or adversely impact their business and thereby have an indirect adverse impact on our NetSpend business. For example, a large number of states have either prohibited, or imposed substantial restrictions upon, the offering of “payday loans” and this activity continues to draw substantial scrutiny from federal and state legislatures, regulatory authorities and various consumer groups. Furthermore, the Reform Act grants supervisory authority over entities engaged in this activity to the CFPB, which is directed to promulgate regulations which may significantly impact the operations and/or viability of various entities. As a number of our NetSpend distributors are engaged in offering payday loans, further legislative and regulatory restrictions that negatively impact their ability to continue their operations could have a corresponding negative impact on our ability to offer GPR cards through their locations, potentially resulting in a significant decline in revenue from the NetSpend business.

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We are subject to the business cycles and credit risk of our merchant customers and our independent sales organizations.

A recessionary economic environment could affect our merchants through a higher rate of business closures, resulting in lower revenues and earnings for us. Our merchants are liable for any charges properly reversed by the card issuer on behalf of the cardholder. Our merchants and ISOs are also liable for any fines, or penalties, that may be assessed by any card networks. In the event, however, that we are not able to collect such amounts from the merchants or ISOs, due to merchant fraud, breach of contract, insolvency, bankruptcy or any other reason, we may be liable for any such charges which could have a material adverse effect on our financial position and results of operations.

We incur chargeback liability when our merchants refuse or cannot reimburse chargebacks resolved in favor of their customers. We cannot accurately anticipate these liabilities, which may adversely affect our financial results.

In the event a billing dispute between a cardholder and a merchant is not resolved in favor of the merchant, the transaction is normally “charged back” to the merchant and the purchase price is credited or otherwise refunded to the cardholder. If we are unable to collect such amounts from the merchant’s account or reserve account (if applicable), or if the merchant refuses or is unable, due to closure, bankruptcy or other reasons, to reimburse us for a chargeback, we bear the loss for the amount of the refund paid to the cardholder. We may experience significant losses from chargebacks in the future. Any increase in chargebacks not paid by our merchants could have a material adverse effect on our financial position and results of operation.

Fraudulent activities by merchants, prepaid card holders or others and losses from overdrawn cardholder accounts may adversely affect our financial results.

We have potential liability for fraudulent bankcard transactions or credits initiated by merchants or others, and our prepaid card programs expose us to threats involving the misuse of cards, collusion, fraud and identify theft. Examples of merchant fraud include when a merchant knowingly uses a stolen or counterfeit bankcard or card number to record a false sales transaction, processes an invalid bankcard, or intentionally fails to deliver the merchandise or services sold in an otherwise valid transaction. Criminals are using increasingly sophisticated methods to engage in illegal activities such as counterfeit and fraud. While we have systems and procedures designed to detect and reduce the impact of fraud, we cannot assure the effectiveness of these measures. It is possible that incidents of fraud could increase in the future. Although a large portion of the fraudulent activity associated with the cards we manage is addressed through the chargeback systems and procedures maintained by the Networks, we are often responsible for other losses due to merchant, cardholder and other types of fraud. No system or procedures established to detect and reduce the impact of fraud are entirely effective. Although we actively devote efforts to effectively manage risk and prevent fraud, we could nevertheless experience an increase in fraud losses over our historical experience. Failure to effectively manage risk and prevent fraud would increase our chargeback liability or other liability. Increases in chargebacks or other liability could have a material adverse effect on our financial position and results of operations.

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Our systems and our third-party providers’ systems may fail which could interrupt our service, cause us to lose business, increase our costs and expose us to liability.

We depend on the efficient and uninterrupted operation of our computer systems, software, data centers and telecommunications networks, as well as the systems and services of third parties. A system outage or data loss could have a material adverse effect on our business, financial position and results of operations Our systems and operations or those of our third-party providers could be exposed to damage or interruption from, among other things, fire, natural disaster, power loss, telecommunications failure, terrorist acts, war, unauthorized entry, human error, and computer viruses or other defects. Defects in our systems or those of third parties, errors or delays in the processing of payment transactions, telecommunications failures, or other difficulties could result in loss of revenue, loss of customers, loss of merchant and cardholder data, harm to our business or reputation, exposure to fraud losses or other liabilities, negative publicity, additional operating and development costs, fines and other sanctions imposed by card networks, and/or diversion of technical and other resources.

We may not be able to successfully manage our intellectual property and may be subject to infringement claims.

In the rapidly developing legal framework, we rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our proprietary technology. Despite our efforts to protect our intellectual property, third parties may infringe or misappropriate our intellectual property or may develop software or technology competitive to us. Our competitors may independently develop similar technology, duplicate our products or services or design around our intellectual property rights. We may have to litigate to enforce and protect our intellectual property rights, trade secrets and know-how or to determine their scope, validity or enforceability, which is expensive and could cause a diversion of resources and may not prove successful. The loss of intellectual property protection or the inability to secure or enforce intellectual property protection could harm our business and ability to compete.

We may also be subject to costly litigation in the event our products and technology infringe upon another party’s proprietary rights. Third parties may have, or may eventually be issued, patents that would be infringed by our products or technology. Any of these third parties could make a claim of infringement against us with respect to our products or technology. We may also be subject to claims by third parties for breach of copyright, trademark or license usage rights. Any such claims and any resulting litigation could subject us to significant liability for damages. An adverse determination in any litigation of this type could limit our ability to use the intellectual property subject to these claims and require us to design around a third party’s patent, which may not be possible, or to license alternative technology from another party, which may be costly. In addition, litigation is time consuming and expensive to defend and could result in the diversion of the time and attention of our management and employees.

If we lose key personnel or are unable to attract additional qualified personnel, our business could be adversely affected.

We are dependent upon the ability and experience of a number of highly skilled technical, management and sales and marketing personnel who have substantial experience with our operations, the rapidly changing transaction processing industry and markets in which we offer our services. It is possible that the loss of the services of one or a combination of our key personnel would have an adverse effect on our operations. Our success also depends on our ability to

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continue to attract, manage and retain additional qualified management and technical personnel. Competition for the best people, particularly those individuals with technology experience, is intense. We cannot guarantee that we will continue to attract or retain such personnel.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

As of December 31, 2013, we and our subsidiaries owned 12 facilities encompassing approximately 1,446,568 square feet and leased 60 facilities encompassing approximately 869,020 square feet. These facilities are used for operational, sales and administrative purposes.

	Owned Facilities				Leased Facilities
	Number		Square Footage		Number		Square Footage
North America Services		10		1,350,200		8		213,270
International Services		2		96,368		24		239,734
Merchant Services		—		—		22		316,215
NetSpend		—		—		6		99,801

We believe that our facilities are suitable and adequate for our current business; however, we periodically review our space requirements and may acquire new space to meet the needs of our businesses or consolidate and dispose of or sublet facilities which are no longer required.

See Note 1, Note 9, Note 15 and Note 21 of Notes to Consolidated Financial Statements on pages 37 through 46, page 50, pages 56 through 58, and pages 66 through 69 and “Property and Equipment” under the “Financial Review” Section on page 25 of the Annual Report which are incorporated in this document by reference.

Item 3. Legal Proceedings

See Note 15 of Notes to Consolidated Financial Statements on pages 56 through 58 of the Annual Report which is incorporated in this document by reference.

Item 4. Mine Safety Disclosures

None.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Repurchases of Equity Securities

The “Quarterly Financial Data (Unaudited), Stock Price, Dividend Information” Section on page 79, Note 19 of Notes to Consolidated Financial Statements on page 65 and “Stock Performance Graph” on page 80 of the Annual Report are incorporated in this document by reference. The “Stock Performance Graph” is incorporated herein by reference; however, this information shall not be deemed to be “soliciting material” or to be “filed” with the Commission or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended.

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Item 6. Selected Financial Data

The “Selected Financial Data” Section which is set forth on page 7 of the Annual Report is incorporated in this document by reference.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The “Financial Overview” and “Financial Review” Sections which are set forth on pages 7 through 31 of the Annual Report which includes the information encompassed within “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” are incorporated in this document by reference.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Foreign Exchange Risk. We are exposed to foreign exchange risk because we have assets, liabilities, revenues and expenses denominated in foreign currencies. These currencies are translated into U.S. dollars at current exchange rates, except for revenues, costs and expenses and net income, which are translated at the average exchange rate for each reporting period. Net exchange gains or losses resulting from the translation of assets and liabilities of our foreign operations, net of tax, are accumulated in a separate section of shareholders’ equity entitled “accumulated other comprehensive income (loss), net.” The amount of other comprehensive (loss) income, net of tax, related to foreign currency translation for the years ended December 31, 2013, 2012 and 2011 was:

(in millions)	2013			2012		2011
Comprehensive income (loss), net of tax	($	1.3	)	$	3.5	$	1.1

Currently, we do not use financial instruments to hedge our exposure to exchange rate changes.

The following table presents the carrying value of the net assets of our foreign operations in U.S. dollars at December 31, 2013:

(in millions)	December 31, 2013
Europe	$	175.9
China		86.7
Cyprus		50.9
Japan		37.7
Other		6.7

We record foreign currency translation adjustments associated with other balance sheet accounts. See “Nonoperating Income (Expense)” under the “Financial Review” Section on page 21 of the Annual Report which is incorporated in this document by reference. We maintain several cash accounts denominated in foreign currencies, primarily in US dollars and Euros. As we translate the foreign-denominated cash balances into U.S. dollars, the translated cash balance is adjusted upward or

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downward depending upon the foreign currency exchange movements. The upward or downward adjustment is recorded as a gain or loss on foreign currency translation in our statements of income. As those cash accounts have increased, the upward or downward adjustments have increased. We recorded a net translation loss of approximately $1.0 million for the year ended December 31, 2013 relating to the translation of foreign denominated balance sheet accounts, most of which were cash. The balance of the foreign-denominated cash accounts subject to risk of translation gains or losses at December 31, 2013 was approximately $15.9 million, the majority of which is denominated in Euros.

We provide financing to our international operation in Europe through an intercompany loan that requires the operation to repay the financing in U.S. dollars. The functional currency of each operation is the respective local currency. As we translate the foreign currency denominated financial statements into U.S. dollars, the translated balance of the financing (liability) is adjusted upward or downward to match the U.S. dollar obligation (receivable) on our financial statements. The upward or downward adjustment is recorded as a gain or loss on foreign currency translation in other comprehensive income.

The net asset account balance subject to foreign currency exchange rates between the local currencies and the U.S. dollar at December 31, 2013 was $26.3 million.

The following table presents the potential effect on income before income taxes of hypothetical shifts in the foreign currency exchange rate between the local currencies and the U.S. dollar of plus or minus 100 basis points, 500 basis points and 1,000 basis points based on the net asset account balance of $26.3 million at December 31, 2013.

	Effect of Basis Point Change
(in thousands)	Increase in basis point of				Decrease in basis point of
		100	500	1,000		100		500		1,000
Effect on income before income taxes	$	263	1,316	2,631		(263	)	(1,316	)	(2,631	)

The foreign currency risks associated with other currencies is not significant.

Interest Rate Risk. We are also exposed to interest rate risk associated with the investing of available cash. We invest available cash in conservative short-term instruments and are primarily subject to changes in the short-term interest rates.

The following table provides information about our debt obligations that are sensitive to changes in interest rates. The table presents principal cash flows and related weighted average

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interest rates by expected maturity dates. The information is presented in U.S. dollar equivalents, which is our reporting currency. The debt obligation’s actual cash flows are denominated in U.S. dollars.

At December 31, 2013	Expected maturity date
Liabilities	2014			2015			2016			2017			2018			Thereafter			TOTAL
(US$ Equivalent in millions)
Long-term Debt:
Fixed Rate	$	16.8			15.7			0.3			0.0			550.0			550.0		$	1,132.8
Average interest rate		3.02	%		3.02	%		3.02	%		3.02	%		3.02	%		3.02	%		3.02	%
Variable Rate	$	17.5			21.3			30.0			125.0			140.0			—		$	333.8
Average interest rate		1.29	%		1.29	%		1.29	%		1.29	%		1.29	%		—			1.29	%

Item 8. Financial Statements and Supplementary Data

The “Quarterly Financial Data (Unaudited), Stock Price, Dividend Information” Section, which is set forth on page 79, and the “Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Other Comprehensive Income, Consolidated Statements of Cash Flows, Consolidated Statements of Changes in Equity, Notes to Consolidated Financial Statements, Report of Independent Registered Public Accounting Firm and Management’s Report on Internal Control Over Financial Reporting,” which are set forth on pages 32 through 78 of the Annual Report are incorporated in this document by reference.

Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. We have evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this annual report as required by Rule 13a-15 of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This evaluation was carried out under the supervision and with the participation of our management, including our chief executive officer and chief financial officer. Based on this evaluation, the chief executive officer and chief financial officer concluded that as of December 31, 2013, TSYS’ disclosure controls and procedures were designed and effective to ensure that the information required to be disclosed by TSYS in reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and were also designed and effective to ensure that the information required to be disclosed in the reports that TSYS files or submits under the Exchange Act is accumulated and communicated to management, as appropriate to allow timely decisions regarding required disclosure.

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Management’s Report on Internal Control Over Financial Reporting and Report of Independent Registered Public Accounting Firm. “Management’s Report on Internal Control Over Financial Reporting,” which is set forth on page 78 of the Annual Report, and “Report of Independent Registered Public Accounting Firm,” which is set forth on page 77 of the Annual Report, are incorporated in this document by reference.

Changes in Internal Control Over Financial Reporting. No change in our internal control over financial reporting occurred during the fourth fiscal quarter covered by this annual report that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

None.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Information included under the following captions in our Proxy Statement is incorporated in this document by reference:

• “PROPOSALS TO BE VOTED ON” – “PROPOSAL 1: ELECTION OF DIRECTORS,”

• “EXECUTIVE OFFICERS,”

• “SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE,” and

• “CORPORATE GOVERNANCE AND BOARD MATTERS” – “Committees of the Board.”

We have a Code of Business Conduct and Ethics that applies to all directors, officers and employees, including our principal executive officer, our principal financial officer and our chief accounting officer. You can find our Code of Business Conduct and Ethics in the Corporate Governance section of our website at www.tsys.com under “Investor Relations” then “Corporate Governance.” We will post any amendments to the Code of Business Conduct and Ethics and any waivers that are required to be disclosed by the rules of either the SEC or the NYSE in the Corporate Governance section of our website.

Item 11. Executive Compensation

Information included under the following captions in our Proxy Statement is incorporated in this document by reference:

• “DIRECTOR COMPENSATION,”

• “EXECUTIVE COMPENSATION” – “Compensation Discussion and Analysis,” “Compensation Committee Report,” and the Compensation Tables and Narratives, and

• “CORPORATE GOVERNANCE AND BOARD MATTERS” – “Compensation Committee Interlocks and Insider Participation” and “Risk Oversight.”

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The information included under the heading “Compensation Committee Report” in our Proxy Statement is incorporated herein by reference; however, this information shall not be deemed to be “soliciting material” or to be “filed” with the Commission or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Information pertaining to equity compensation plans is contained in Note 17 of Notes to Consolidated Financial Statements on page 59 of the Annual Report and is incorporated in this document by reference.

Information included under the following captions in our Proxy Statement is incorporated in this document by reference:

• “STOCK OWNERSHIP OF DIRECTORS AND EXECUTIVE OFFICERS,” and

• “PRINCIPAL SHAREHOLDERS.”

Item 13. Certain Relationships and Related Transactions, and Director Independence

Information included under the following captions in our Proxy Statement is incorporated in this document by reference:

• “CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,” and

• “CORPORATE GOVERNANCE AND BOARD MATTERS” – “Director Independence.”

Item 14. Principal Accountant Fees and Services

Information included under the following caption in our Proxy Statement is incorporated in this document by reference:

• “AUDIT AND NON-AUDIT FEES.”

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a) 1. Financial Statements

The following consolidated financial statements of TSYS are incorporated in this document by reference from pages 32 through 78 of the Annual Report.

Consolidated Balance Sheets - December 31, 2013 and 2012

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Consolidated Statements of Income - Years Ended December 31, 2013, 2012 and 2011

Consolidated Statements of Other Comprehensive Income – Years Ended December 31, 2013, 2012 and 2011

Consolidated Statements of Cash Flows - Years Ended December 31, 2013, 2012 and 2011

Consolidated Statements of Changes in Equity - Years Ended December 31, 2013, 2012 and 2011

Notes to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm

Management’s Report on Internal Control Over Financial Reporting

2. Financial Statement Schedules

The following report of independent registered public accounting firm and consolidated financial statement schedule of TSYS are included:

Report of Independent Registered Public Accounting Firm

Schedule II - Valuation and Qualifying Accounts - Years Ended December 31, 2013, 2012 and 2011

All other schedules are omitted because they are inapplicable or the required information is included in the consolidated financial statements and notes thereto.

3. Exhibits

The following exhibits are filed herewith or are incorporated to other documents previously filed with the SEC. Exhibits 10.6 through 10.32 pertain to executive compensation plans and arrangements. With the exception of those portions of the Annual Report and Proxy Statement that are expressly incorporated by reference in this Form 10-K, such documents are not to be deemed filed as part of this Form 10-K.

Exhibit
Number	Description
2.1	Agreement and Plan of Merger, dated as of February 19, 2013, by and among TSYS, General Merger Sub, Inc. and NetSpend Holdings Inc., incorporated by reference to Exhibit 2.1 of TSYS’ Current Report on Form 8-K dated February 19, 2013

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2.2	First Amendment to the Agreement and Plan of Merger, dated as of May 29, 2013, which amended the Agreement and Plan of Merger, dated as of February 19, 2013, by and among TSYS, General Merger Sub, Inc. and NetSpend Holdings, Inc., incorporated by reference to Exhibit 2.1 of TSYS’ Current Report on Form 8-K dated May 29, 2013
3.1	Articles of Incorporation of TSYS, as amended, incorporated by reference to Exhibit 3.1 of TSYS’ Current Report on Form 8-K dated April 30, 2009
3.2	Bylaws of TSYS, as amended, incorporated by reference to Exhibit 3.1 of TSYS’ Current Report on Form 8-K dated July 28, 2009
4.1	Indenture, dated as of May 22, 2013, between TSYS and Wells Fargo Bank, National Association, as trustee, incorporated by reference to Exhibit 4.1 of TSYS’ Current Report on Form 8-K dated May 22, 2013
4.2	Form of 2.375% Senior Note due 2018, incorporated by reference to Exhibit 4.2 of TSYS’ Current Report on Form 8-K dated May 22, 2013
4.3	Form of 3.750% Senior Note due 2023, incorporated by reference to Exhibit 4.3 of TSYS’ Current Report on Form 8-K dated May 22, 2013
10.1	Credit Agreement of TSYS, dated as of September 10, 2012, with JPMorgan Chase Bank, N.A., as Administrative Agent, J.P. Morgan Securities LLC, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Regions Capital Markets and U.S. Bank National Association, as joint lead arrangers and joint bookrunners, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., Regions Bank and U.S. Bank National Association, as Syndication Agents, and the other lenders named therein, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated September 11, 2012
10.2	First Amendment, dated as of April 8, 2013, to the Credit Agreement of TSYS, dated as of September 10, 2012, with JPMorgan Chase Bank, N.A., as Administrative Agent, J.P. Morgan Securities LLC, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Regions Capital Markets and U.S. Bank National Association, as joint lead arrangers and joint bookrunners, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., Regions Bank and U.S. Bank National Association, as Syndication Agents, and the other lenders named therein, incorporated by reference to Exhibit 10.2 of TSYS’ Current Report on Form 8-K dated April 8, 2013

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10.3	Credit Agreement of TSYS, dated as of April 8, 2013, with JPMorgan Chase Bank, N.A., as Administrative Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Syndication Agent, Regions Bank and U.S. Bank National Association, as Documentation Agents, and other lenders party thereto, with J.P. Morgan Securities LLC, The Bank of Tokyo Mitsubishi UFJ, Ltd., Regional Capital Markets, and U.S. Bank National Association, as joint lead arrangers and joint bookrunners, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated April 8, 2013
10.4	Voting Agreement, dated as of February 19, 2013, by and among TSYS and JLL Partners Fund IV, L.P., JLL Partners Fund V, L.P., Oak Investment Partners X, Limited Partnership and Oak X Affiliates Fund, L.P., incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated February 19, 2013
10.5	Commitment Letter, dated as of February 19, 2013, by and among TSYS, JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC and The Bank of Tokyo-Mitsubishi UFJ, Ltd., incorporated by reference to Exhibit 10.2 of TSYS’ Current Report on Form 8-K dated February 19, 2013

EXECUTIVE COMPENSATION PLANS AND ARRANGEMENTS

10.6	Total System Services, Inc. 2002 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.2 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2001, as filed with the SEC on March 19, 2002
10.7	Amended and Restated Total System Services, Inc. Deferred Compensation Plan, incorporated by reference to Exhibit 10.1 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, as filed with the SEC on August 9, 2010
10.8	Amended and Restated Total System Services, Inc. Directors’ Deferred Compensation Plan, incorporated by reference to Exhibit 10.2 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2008, as filed with the SEC on August 7, 2008
10.9	Wage Continuation Agreement of TSYS, incorporated by reference to Exhibit 10.7 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 1992, as filed with the SEC on March 18, 1993

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10.10	Split Dollar Insurance Agreement of TSYS, incorporated by reference to Exhibit 10.10 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 1993, as filed with the SEC on March 22, 1994
10.11	Change of Control Agreement for executive officers of TSYS, incorporated by reference to Exhibit 10.17 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2007, as filed with the SEC on February 29, 2008
10.12	Split Dollar Insurance Agreement and related Executive Benefit Substitution Agreement, incorporated by reference to Exhibit 10.19 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2001, as filed with the SEC on March 19, 2002
10.13	Summary of Board of Directors Compensation, incorporated by reference to Exhibit 10.1 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, as filed with the SEC on August 6, 2012
10.14	Form of Stock Option Agreement for stock option awards under the Total System Services, Inc. 2002 Long-Term Incentive Plan for grants made subsequent to January 17, 2006, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated January 17, 2006
10.15	Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated April 24, 2007
10.16	Total System Services, Inc. 2012 Omnibus Plan (formerly named the 2008 Omnibus Plan), incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated May 4, 2012
10.17	Form of Revised Stock Option Agreement for stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.2 of TSYS’ Current Report on Form 8-K dated February 5, 2008
10.18	Form of Retention Restricted Stock Award Agreement for retention restricted stock awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.3 of TSYS’ Current Report on Form 8-K dated February 5, 2008

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10.19	Form of Amended and Revised Stock Option Agreement for stock option awards under the Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated March 28, 2008
10.20	Form of Amended and Revised Stock Option Agreement for 2008 stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.3 of TSYS’ Current Report on Form 8-K dated March 28, 2008
10.21	Form of Amended and Revised Stock Option Agreement for 2009 stock option awards under the Total System Services, Inc. 2007 and 2008 Omnibus Plans, incorporated by reference to Exhibit 10.40 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as filed with the SEC on February 27, 2009
10.22	Form of Stock Option Agreement for 2010 stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.4 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, as filed with the SEC on May 7, 2010
10.23	Form of Performance-Based Special Stock Option Agreement for performance-based stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.6 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, as filed with the SEC on May 7, 2010
10.24	Form of Non-Employee Director Fully Vested Stock Option Agreement for the Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.37 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on February 28, 2011
10.25	Form of Non-Employee Director Fully Vested Share Award Agreement for the Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.38 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on February 28, 2011
10.26	Form of Stock Option Agreement for 2011 stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.1 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, as filed with the SEC on May 6, 2011

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10.27	Form of Performance Share Agreement for 2011 performance share awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.2 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, as filed with the SEC on May 6, 2011
10.28	Form of Indemnification Agreement for directors and executive officers of TSYS, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated July 25, 2007
10.29	Form of Senior Executive Stock Option Agreement for 2012 stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.1 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, as filed with the SEC on May 7, 2012
10.30	Form of Senior Executive Performance Share Agreement for 2012 performance share awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.2 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, as filed with the SEC on May 7, 2012
10.31	Form of Senior Executive Stock Option Agreement for 2013 stock option awards under the Total System Services, Inc. 2012 Omnibus Plan, incorporated by reference to Exhibit 10.3 of TSYS’ Quarterly Report on Form 10-Q for the Quarter ended March 31, 2013, as filed with the SEC on May 8, 2013
10.32	Form of Senior Executive Performance Share Agreement for 2013 performance share awards under the Total System Services, Inc. 2012 Omnibus Plan, incorporated by reference to Exhibit 10.4 of TSYS’ Quarterly Report on Form 10-Q for the Quarter ended March 31, 2013, as filed with the SEC on May 8, 2013
13.1	Certain specified pages of TSYS’ 2013 Annual Report to Shareholders which are incorporated herein by reference
21.1	Subsidiaries of Total System Services, Inc.
23.1	Consent of Independent Registered Public Accounting Firm
24.1	Powers of Attorney contained on the signature pages of this 2013 Annual Report on Form 10-K and incorporated herein by reference
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

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32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.1	Annual Report on Form 11-K for the Total System Services, Inc. Employee Stock Purchase Plan for the year ended December 31, 2013 (to be filed as an amendment hereto within 120 days of the end of the period covered by this report)
101	Interactive Data File

We agree to furnish the SEC, upon request, a copy of each instrument with respect to issues of long-term debt. The principal amount of any individual instrument, which has not been previously filed, does not exceed ten percent of the total assets of TSYS and our subsidiaries on a consolidated basis.

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Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Total System Services, Inc.:

Under date of February 25, 2014, we reported on the consolidated balance sheets of Total System Services, Inc. and subsidiaries as of December 31, 2013 and 2012, and the related consolidated statements of income, comprehensive income, cash flows, and changes in equity for each of the years in the three-year period ended December 31, 2013, which are included in the December 31, 2013 annual report on Form 10-K. In connection with our audits of the aforementioned consolidated financial statements, we also audited the related consolidated financial statement schedule in Schedule II. This financial statement schedule is the responsibility of the Company’s management. Our responsibility is to express an opinion on this financial statement schedule based on our audits.

In our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

/s/KPMG LLP

Atlanta, Georgia

February 25, 2014

Schedule II

Schedule — Valuation and Qualifying Accounts

TOTAL SYSTEM SERVICES, INC.

Schedule II

Valuation and Qualifying Accounts

(in thousands)

			Additions
			Changes in
	Balance at		allowances, charges to						Balance at
	beginning		expenses and changes						end
	of period		to other accounts			Deductions			of period
Year ended December 31, 2011:
Provision for doubtful accounts	$	1,982		1,899	(1)		(1,773	)(3)	$	2,108
Provision for billing adjustments	$	2,560		(347	)(1)		(176	)(3)	$	2,037
Transaction processing accruals - processing errors	$	5,140		3,763	(2)		(3,581	)(3)	$	5,322
Deferred tax valuation allowance	$	15,434		5,384	(5)		(1,611	)(6)	$	19,207
Year ended December 31, 2012:
Provision for doubtful accounts	$	2,108		2,045	(1)		(1,539	)(3)	$	2,614
Provision for billing adjustments	$	2,037		(991	)(1)		251	(3)	$	1,297
Transaction processing accruals - processing errors	$	5,322		2,803	(2)		(6,401	)(3)	$	1,724
Deferred tax valuation allowance	$	19,207		526	(5)		(333	)(6)	$	19,400
Year ended December 31, 2013:
Provision for doubtful accounts	$	2,614		2,375	(1)		(2,232	)(3)	$	2,757
Provision for billing adjustments	$	1,297		(376	)(1)		(294	)(3)	$	627
Transaction processing accruals - processing errors	$	1,724		7,458	(2)		(6,773	)(3)	$	2,409
Provision for fraud losses	$	—		19,737	(1),(4)		(13,953	)(3)	$	5,784
Deferred tax valuation allowance	$	19,400		549	(5)		—	(6)	$	19,949

(1) Amount reflected includes charges to (recoveries of) bad debt expense which are classified in selling, general and administrative expenses and the charges for billing adjustment which are recorded against revenues.

(2) Amount reflected is the change in transaction processing accruals reflected in cost of services expenses.

(3) Accounts deemed to be uncollectible and written off during the year as it relates to bad debts. Amounts that relate to billing adjustments and transaction processing accruals reflect actual billing adjustments and processing errors charged against the allowances.

(4) Includes $7.8 million of fraud losses on July 1, 2013 related to the acquisition of NetSpend.

(5) Amount represents an increase in the amount of deferred tax assets, which more likely than not, will not be realized.

(6) Amount represents a decrease in the amount of deferred tax assets, which more likely than not, will not be realized.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, Total System Services, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	TOTAL SYSTEM SERVICES, INC.
	(Registrant)
Date: February 25, 2014	By:	/s/ Philip W. Tomlinson
		Philip W. Tomlinson,
		Principal Executive Officer and Chairman of the Board

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Philip W. Tomlinson and M. Troy Woods and each of them, his true and lawful attorney(s)-in-fact and agent(s), with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this report and to file the same, with all exhibits and schedules thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney(s)-in-fact and agent(s) full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney(s)-in-fact and agent(s), or their substitute(s), may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, this report has been signed by the following persons in the capacities and on the dates indicated.

/s/ Philip W. Tomlinson	Date: February 25, 2014
Philip W. Tomlinson,
Principal Executive Officer and Chairman of the Board
/s/ M. Troy Woods	Date: February 25, 2014
M. Troy Woods,
President and Director

/s/ James B. Lipham	Date: February 25, 2014
James B. Lipham,
Senior Executive Vice President and Principal Financial Officer
/s/ Dorenda K. Weaver	Date: February 25, 2014
Dorenda K. Weaver,
Chief Accounting Officer
/s/ James H. Blanchard	Date: February 25, 2014
James H. Blanchard,
Director
/s/ Richard Y. Bradley	Date: February 25, 2014
Richard Y. Bradley,
Director
/s/ Kriss Cloninger III	Date: February 25, 2014
Kriss Cloninger III,
Director
/s/ Walter W. Driver, Jr.	Date: February 25, 2014
Walter W. Driver, Jr.,
Director
/s/ Gardiner W. Garrard, Jr.	Date: February 25, 2014
Gardiner W. Garrard, Jr.,
Director
/s/ Sidney E. Harris	Date: February 25, 2014
Sidney E. Harris,
Director
	Date:
William M. Issac
Director

/s/ Mason H. Lampton	Date: February 25, 2014
Mason H. Lampton,
Director
	Date:
Connie D. McDaniel
Director
/s/ H. Lynn Page	Date: February 25, 2014
H. Lynn Page,
Director
/s/ John T. Turner	Date: February 25, 2014
John T. Turner,
Director
/s/ Richard W. Ussery	Date: February 25, 2014
Richard W. Ussery,
Director
/s/ James D. Yancey	Date: February 25, 2014
James D. Yancey,
Director

EX-13.1

Exhibit 13.1

Selected Financial Data

The following financial data should be read in conjunction with the Consolidated Financial Statements and Notes thereto and Financial Review sections of the Annual Report. The historical trends in Total System Services, Inc.’s (TSYS’ or the Company’s) results of operations and financial position over the last five years are presented below.

	Years Ended December 31,
(in thousands, except per share data)	2013			2012			2011			2010			2009
Income Statement Data:
Total revenues	$	2,132,353			1,870,972			1,808,966			1,717,577			1,677,483
Operating income	$	386,247			357,652			322,456			309,429			344,026
Income from continuing operations, net of tax	$	256,597			249,923			222,662			208,866			225,720
Loss from discontinued operations, net of tax		—			—			—			(3,245	)		(6,544	)
Net income		256,597			249,923			222,662			205,621			219,176
Net income attributable to noncontrolling interests		(11,847	)		(5,643	)		(2,103	)		(11,674	)		(3,963	)
Net income attributable to TSYS common shareholders	$	244,750			244,280			220,559			193,947			215,213
Basic earnings per share (EPS)* attributable to TSYS common shareholders:
Income from continuing operations	$	1.30			1.30			1.15			1.00			1.12
Loss from discontinued operations		—			—			—			(0.02	)		(0.03	)
Net income	$	1.30			1.30			1.15			0.99			1.09
Diluted EPS* attributable to TSYS common shareholders:
Income from continuing operations	$	1.29			1.29			1.15			1.00			1.12
Loss from discontinued operations		—			—			—			(0.02	)		(0.03	)
Net income	$	1.29			1.29			1.15			0.99			1.09
Cash dividends declared per share	$	0.40			0.40			0.31			0.28			0.28

	As of December 31,
(in thousands)	2013		2012		2011		2010		2009
Balance Sheet Data:
Total assets	$	3,686,568		2,023,838		1,858,392		1,952,261		1,710,954
Obligations under long-term debt and capital leases, excluding current portion		1,435,751		192,014		63,593		225,276		205,123

* Basic and diluted EPS amounts for continuing operations and net income do not total due to rounding.

Financial Overview

TSYS’ revenues are derived from providing global payment services to financial and nonfinancial institutions, generally under long-term processing contracts. The Company’s services are provided through the Company’s four operating segments: North America Services, International Services, Merchant Services, and NetSpend.

Through the Company’s North America Services and International Services segments, TSYS processes information through its cardholder systems to

financial institutions throughout the United States and internationally. The Company’s North America Services segment provides these services to clients in the United States, Canada, Mexico and the Caribbean. The Company’s International Services segment provides services to clients in Europe, India, Middle East, Africa, Asia Pacific and Brazil. The Company’s Merchant Services segment provides merchant services to merchant acquirers and merchants in the United States.

TSYS acquires other companies as part of its strategy for growth.

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On July 1, 2013, TSYS completed its acquisition of all the outstanding stock of NetSpend Holdings, Inc. (NetSpend). NetSpend operates as a single reportable business segment and provides general purpose reloadable (GPR) prepaid debit and payroll cards and alternative financial service solutions to the underbanked and other consumers in the United States. The products NetSpend manages provide underbanked consumers access to FDIC-insured depository accounts with a menu of pricing and features specifically tailored to their needs. All cardholder funds are held by NetSpend’s issuing banks. NetSpend has an extensive distribution and reload network comprised of financial service centers and other retail locations throughout the United States.

The following table sets forth each segment’s revenues as a percentage of the Company’s total revenues:

	Years Ended December 31,
	2013			2012			2011
North America Services		46	%		51	%		51	%
Merchant Services		25			27			27
International Services		19			22			22
NetSpend		10			—			—
Total revenues		100	%		100	%		100	%

Due to the somewhat seasonal nature of the credit card industry, TSYS’ revenues and results of operations have generally increased in the fourth quarter of each year because of increased transaction and authorization volumes during the traditional holiday shopping season. Furthermore, growth or declines in card and merchant portfolios of existing clients, the conversion of cardholder and merchant accounts of new clients to the Company’s processing platforms, the receipt of fees for early contract termination and the loss of cardholder and merchant accounts either through purges or deconversions impact the results of operations from period to period.

Another factor which may affect TSYS’ revenues and results of operations from time to time is consolidation in the financial services or retail industries either through the sale, by a client, of its business, its card portfolio or a segment of its accounts to a party which processes cardholder or merchant accounts internally or uses another third-party processor. A change in the economic environment in the retail sector, or a change in the mix of payments between cash and cards could

favorably or unfavorably impact TSYS’ financial position, results of operations and cash flows in the future.

TSYS’ reported financial results will also be impacted by significant shifts in currency conversion rates. TSYS does not view foreign currency as an economic event for the Company but as a financial reporting issue. Because changes in foreign currency exchange rates distort the operating growth rates, TSYS discloses the impact of foreign currency translation on its financial performance.

A significant amount of the Company’s revenues are derived from long-term contracts with large clients. Processing contracts with large clients, representing a significant portion of the Company’s total revenues, generally provide for discounts on certain services based on the size and activity of clients’ portfolios. Therefore, revenues and the related margins are influenced by the client mix relative to the size of client portfolios, as well as the number and activity of individual cardholder or merchant accounts processed for each client. Consolidation among financial institutions has resulted in an increasingly concentrated client base, which results in a change in client mix toward larger clients.

Regulation

Government regulation affects key areas of TSYS’ business, in the U.S. as well as internationally. As a result of the financial crisis, TSYS, along with the rest of the financial services industry, continues to experience increased legislative and regulatory scrutiny, including the enactment of additional legislative and regulatory initiatives such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (Financial Reform Act). This legislation, which provides for sweeping financial regulatory reform, may have a significant and negative impact on the Company and its clients, which could impact TSYS’ earnings through fee reductions, higher costs (both regulatory and implementation) and new restrictions on operations. The Financial Reform Act may also impact the competitive dynamics of the financial services industry in the U.S. by more adversely impacting large financial institutions, some of which are TSYS clients, and by adversely impacting the competitive position of U.S. financial institutions in comparison to foreign competitors in certain businesses.

The Financial Reform Act, which includes the Durbin Amendment to the Electronic Funds Transfer Act, mandates that the Board of Governors of the Federal Reserve System (Board) limit debit card interchange

8

fees. Final rules were issued in June 2011. The final rules cap interchange fees for debit transactions at $0.21 plus five basis points of the transaction and require that the amount of any debit interchange transaction fee charged be reasonable and proportional to the costs incurred in connection with the transaction. In July 2013, a federal court invalidated these rules and ordered the Board to revise them. However, that order has been stayed and the rules have been left in place pending the resolution of an expedited appeal filed by the Board with the federal appeals court.

Although this legislative action by the U.S. Congress had been anticipated for some time, it remains impossible to predict the impact, if any, that the law and the regulations to be promulgated thereunder may have on the Company’s operations or its financial condition in the future. However, as TSYS’ business is predominately credit card related, the Durbin Amendment is not expected to have a significant negative impact upon TSYS’ business.

Financial Review

This Financial Review provides a discussion of critical accounting policies and estimates, related party transactions and off-balance sheet arrangements. This Financial Review also discusses the results of operations, financial position, liquidity, and capital resources of TSYS and outlines the factors that have affected its recent earnings, as well as those factors that may affect its future earnings. The accompanying Consolidated Financial Statements and related Notes are an integral part of this Financial Review and should be read in conjunction with it.

Critical Accounting Policies and Estimates

Risk factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations are listed in the Company’s forward-looking statements. Negative developments in these or other risk factors could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

TSYS’ financial position, results of operations and cash flows are impacted by the accounting policies the Company has adopted. Refer to Note 1 in the consolidated financial statements for more information on the Company’s basis of presentation and a summary of significant accounting policies.

Management believes that the following accounting policies are the most critical to fully understand and evaluate the Company’s results. Within each critical policy, the Company makes estimates that require management’s subjective or complex judgments about the effects of matters that are inherently uncertain.

A summary of the Company’s critical accounting estimates applicable to all four reportable operating segments follows:

Allowance for Doubtful Accounts and Billing Adjustments

The Company estimates the allowance for doubtful accounts. When estimating the allowance, the Company takes into consideration such factors as its knowledge of the financial position of specific clients, the industry and size of its clients, the overall composition of its accounts receivable aging, prior experience with specific customers of accounts receivable write-offs and prior history of allowances in proportion to the overall receivable balance. This analysis includes an ongoing and continuous communication with its largest clients and those clients with past due balances. A financial decline of any one of the Company’s large clients could have a material adverse effect on collectability of receivables and thus the adequacy of the allowance for doubtful accounts. If the actual collectability of clients’ accounts is not consistent with the Company’s estimates, bad debt expense, which is recorded in selling, general and administrative expenses, may be materially different than was initially recorded. The Company’s experience and extensive data accumulated historically indicates that these estimates have proven reliable over time.

The Company estimates allowances for billing adjustments for potential billing discrepancies. When estimating the allowance for billing adjustments, the Company considers its overall history of billing adjustments, as well as its history with specific clients and known disputes. If the actual adjustments to clients’ billing are not consistent with the Company’s estimates, billing adjustments, which are recorded as a reduction of revenues in the Company’s Consolidated Statements of Income, may be materially different than was initially recorded. The Company’s experience and extensive data accumulated historically indicates that these estimates have proven reliable over time.

9

Contract Acquisition Costs

In evaluating for recoverability, expected cash flows are estimated by management. The Company evaluates the carrying value of contract acquisition costs associated with each customer for impairment on the basis of whether these costs are fully recoverable from either contractual minimum fees (conversion costs) or from expected undiscounted net operating cash flows of the related contract (cash incentives paid). The determination of expected undiscounted net operating cash flows requires management to make estimates. If the actual cash flows are not consistent with the Company’s estimates, a material impairment charge may result and net income may be materially different than was initially recorded.

These costs may become impaired with the loss of a contract, the financial decline of a client, termination of conversion efforts after a contract is signed, or diminished prospects for current clients. Note 10 in the consolidated financial statements contains a discussion of contract acquisition costs. The net carrying value of contract acquisition costs on the Company’s Consolidated Balance Sheet as of December 31, 2013 was $184.9 million.

Software Development Costs

In evaluating for recoverability, expected cash flows are estimated by management. The Company evaluates the unamortized capitalized costs of software development as compared to the net realizable value of the software product, which is determined by expected undiscounted net operating cash flows. The amount by which the unamortized software development costs exceed the net realizable value is written off in the period that such determination is made. If the actual cash flows are not consistent with the Company’s estimates, a material write-off may result and net income may be materially different than was initially recorded. Assumptions and estimates about future cash flows and remaining useful lives of software are complex and subjective. They can be affected by a variety of factors, including industry and economic trends, changes in the Company’s business strategy, and changes in internal forecasts. Note 8 in the consolidated financial statements contains a discussion of internally developed software costs. The net carrying value of internally developed software on the Company’s Consolidated Balance Sheet as of December 31, 2013 was $82.0 million.

Acquisitions — Purchase Price Allocation

TSYS’ purchase price allocation methodology requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities. TSYS estimates the fair value of assets and liabilities based upon appraised market values, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses. Management determines the fair value of fixed assets and identifiable intangible assets such as developed technology or customer relationships, and any other significant assets or liabilities. TSYS adjusts the purchase price allocation, as necessary, up to one year after the acquisition closing date as TSYS obtains more information regarding asset valuations and liabilities assumed. Unanticipated events or circumstances may occur which could affect the accuracy of the Company’s fair value estimates, including assumptions regarding industry economic factors and business strategies, and result in an impairment or a new allocation of purchase price.

Given its history of acquisitions, TSYS may allocate part of the purchase price of future acquisitions to contingent consideration as required by GAAP for business combinations. The fair value calculation of contingent consideration will involve a number of assumptions that are subjective in nature and which may differ significantly from actual results. TSYS may experience volatility in its earnings to some degree in future reporting periods as a result of these fair value measurements.

Goodwill

In evaluating for impairment, discounted net cash flows for future periods are estimated by management. In accordance with the provisions of Accounting Standards Codification (ASC) 350, “Intangibles — Goodwill and Other,” goodwill is required to be tested for impairment at least annually. The combination of the income approach utilizing the discounted cash flow (DCF) method and the market approach, utilizing readily available market valuation multiples, is used to estimate the fair value. Under the DCF method, the fair value of the asset reflects the present value of the projected earnings that will be generated by each asset after taking into account the revenues and expenses associated with the asset, the relative risk that the cash flows will occur, the contribution of other assets, and an appropriate discount rate to reflect the value

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of invested capital. Cash flows are estimated for future periods based on historical data and projections provided by management. If the actual cash flows are not consistent with the Company’s estimates, a material impairment charge may result and net income may be materially different than was initially recorded. Note 6 in the consolidated financial

statements contains a discussion of goodwill. The net carrying value of goodwill on the Company’s Consolidated Balance Sheet as of December 31, 2013 was $1.5 billion.

Long-lived Assets and Intangibles

In evaluating for recoverability, expected undiscounted net operating cash flows are estimated by management. The Company reviews long-lived assets, such as property and equipment and intangibles subject to amortization, including contract acquisition costs and certain computer software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the actual cash flows are not consistent with the Company’s estimates, a material impairment charge may result and net income may be materially different than was initially recorded.

Revenue Recognition

The Company recognizes revenues in accordance with the provisions of Staff Accounting Bulletin (SAB) No. 104, which sets forth guidance as to when revenue is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured.

The Company evaluates its contractual arrangements that provide services to clients through a bundled sales arrangement in accordance with the provisions of ASC 605 Revenue Recognition. ASC 605 addresses the determination of whether an arrangement involving more than one deliverable contains more than one unit of accounting and how the arrangement consideration should be measured and allocated to the separate units of accounting.

A deliverable in multiple element arrangements indicates any performance obligation on the part of

the seller and includes any combination of obligations to perform different services, grant licenses or other rights. Revenue is allocated to the separate units of accounting in a multiple element arrangement based on relative fair values, provided the delivered element has standalone value to the customer and delivery of any undelivered items is probable and substantially within the Company’s control. Evidence of fair value must be objective and reliable. An item has value to the customer on a standalone basis if it is sold separately by any vendor or the customer could resell the deliverable on a standalone basis.

As TSYS’ business and service offerings change in the future, the determination of the number of deliverables in an arrangement and related units of accounting and future pricing practices may result in changes in the estimates of vendor-specific objective evidence of selling price (VSOE) and estimate of the standalone selling price (ESP), which may change the ratio of fees allocated to each service or unit of accounting in a given customer arrangement. There were no material changes or impact to revenue in revenue recognition in the year ended December 31, 2013 due to any changes in the determination of the number of deliverables in an arrangement, units of accounting, or estimates of VSOE or ESP.

Cardholders’ Reserve

The Company is exposed to losses due to cardholder fraud, payment defaults and other forms of cardholder activity as well as losses due to non-performance of third parties who receive cardholder funds for transmittal to the Issuing Banks (banks that issue MasterCard International or Visa USA, Inc. branded cards to customers). The Company establishes a reserve for the losses it estimates will arise from processing customer transactions, debit card overdrafts, chargebacks for unauthorized card use and merchant-related chargebacks due to non-delivery of goods or services. These reserves are established based upon historical loss and recovery rates and cardholder activity for which specific losses can be identified. The cardholders’ reserve was approximately $5.8 million as of December 31, 2013. The provision for cardholder losses is included in cost of services in the Consolidated Statements of Income. The Company regularly updates its estimate as new facts become known and events occur that may impact the settlement or recovery of losses.

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Provision for Merchant Losses

The Company has potential liability for losses resulting from disputes between a cardholder and a merchant that arise as a result of, among other things, the cardholder’s dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. If the merchant is unable to fund the refund, TSYS must do so. TSYS also bears the risk of reject losses arising from the fact that TSYS collects fees from its merchants on the first day after the monthly billing period. If the merchant has gone out of business during such period, TSYS may be unable to collect such fees. TSYS maintains cash deposits or requires the pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. Most chargeback and reject losses are charged to cost of services as they are incurred. However, the Company also maintains a provision against losses, including major fraud losses, which are both less predictable and involve larger amounts. The loss provision is established using historical loss rates, applied to recent bankcard processing volume. As of December 31, 2013, the Company had a merchant loss accrual in the amount of $991,000.

Transaction Processing Provisions

The Company records estimates to provide for contract contingencies (performance penalties) and processing errors. A significant number of the Company’s contracts with large clients contain service level agreements which can result in TSYS incurring performance penalties if contractually required service levels are not met. When estimating these accruals, the Company takes into consideration such factors as the prior history of performance penalties and processing errors incurred, actual contractual penalties inherent in the Company’s contracts, progress towards milestones, and known processing errors not covered by insurance. If the actual performance penalties incurred are not consistent with the Company’s estimates, performance penalties and processing errors, which are recorded in cost of services, may be materially different than were initially recorded. The Company’s experience and extensive data accumulated

historically indicates that these estimates have proven reliable over time.

Income Taxes

In calculating its effective tax rate, the Company makes decisions regarding certain tax positions, including the timing and amount of deductions and allocations of income among various tax jurisdictions. The Company has various tax filing positions, including the timing and amount of deductions and credits, the establishment of reserves for audit matters and the allocation of income among various tax jurisdictions.

The Company makes estimates as to the amount of deferred tax assets and liabilities and records valuation allowances to reduce its deferred tax assets to reflect the amount that is more likely than not to be realized. The Company considers projected future taxable income and ongoing tax planning strategies in assessing the need for the valuation allowance. Actual results may differ from the Company’s estimates. If the Company realizes a deferred tax asset or the Company was unable to realize a net deferred tax asset, an adjustment to the deferred tax asset would increase or decrease earnings, respectively, in the period the difference is recognized.

Related Party Transactions

The Company provides electronic payment processing and other services to the Company’s equity investments, Total System Services de México, S.A. de C.V. (TSYS de México) and China UnionPay Data Co., Ltd. (CUP Data).

The related party services are performed under contracts that are similar to its contracts with unrelated third party customers. The Company believes the terms and conditions of transactions between the Company and these related parties are comparable to those which could have been obtained in transactions with unaffiliated parties. The Company’s margins with respect to related party transactions are comparable to margins recognized in transactions with unrelated third parties. The amounts related to these transactions are immaterial. No significant changes have been made to the method of establishing terms with the affiliated companies during the periods presented.

Refer to Note 3 in the consolidated financial statements for more information on transactions with affiliated companies.

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Off-Balance Sheet Arrangements

OPERATING LEASES:    As a method of funding its operations, TSYS employs noncancelable operating leases for computer equipment, software and facilities. These leases allow the Company to use the latest technology while avoiding the risk of ownership. Neither the assets nor obligations related to these leases are included on the balance sheet. Refer to Notes 1 and 15 in the consolidated financial statements for further information on operating lease commitments.

CONTRACTUAL OBLIGATIONS:    The total liability for uncertain tax positions under ASC 740, “Income Taxes,” as of December 31, 2013 is $2.7 million. Refer to Note 14 in the consolidated financial statements for more information on income taxes. The Company is not able to reasonably estimate the amount by which the liability will increase or decrease over time; however, at this time, the Company does not expect significant changes related to these obligations within the next year.

Recent Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 eliminates diversity in practice regarding financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. For public entities, this ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its financial position, results of operations or cash flows.

In March 2013, the FASB issued ASU 2013-05 “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. For public entities, the ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 requires that, for items reclassified out of accumulated other comprehensive income (AOCI) and into net income in their entirety, entities must disclose the effect of reclassification on each affected net income line item. For AOCI reclassification items not reclassified in their entirety into net income, entities must provide a cross reference to other required disclosures. ASU 2013-02 is effective for public companies for annual reporting periods beginning after December 15, 2012 and interim periods in those years. TSYS adopted this ASU on January 1, 2013. There were no reclassifications of AOCI to net income or to other accounts for the year ended December 31, 2013. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows.

Results of Operations

Revenues

The Company generates revenues by providing transaction processing and other payment-related services. The Company’s pricing for transactions and services is complex. Each category of revenue has numerous fee components depending on the types of transactions processed or services provided. TSYS reviews its pricing and implements pricing changes on an ongoing basis. In addition, standard pricing varies among its regional businesses, and such pricing can be customized further for customers through tiered pricing of various thresholds for volume activity. TSYS’ revenues are based upon transactional information

accumulated by its systems or reported by its customers. The Company’s revenues are impacted by currency translation of foreign operations, as well as doing business in the current economic environment. Total revenues increased 14.0% for the year ended December 31, 2013. Excluding reimbursable items, the Company estimates revenues, decreased 5.3% due to lost business and 1.9% due to price reductions, and 1.9% due to currency translation, termination fees, and other adjustments and increased 16.7% due to the impact of acquisitions and 9.2% as a result of new business and internal growth.

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TSYS’ revenues are generated primarily from charges based on the number of accounts on file (AOF), transactions and authorizations processed, statements mailed, cards embossed and mailed, and other processing services for cardholder AOF. Cardholder AOF include active and inactive consumer credit, retail, prepaid, stored value, government services and commercial card accounts.

TSYS’ revenues in its North America Services and International Services segments are influenced by several factors, including volumes related to AOF and transactions. TSYS estimates that approximately 49.6% of these segments’ revenues is AOF and transaction volume driven. The remaining 50.4% of payment processing revenues are not AOF and transaction volume driven, and are derived from production and optional services TSYS considers to be value added products and services, custom programming and licensing arrangements.

Whether or not an account on file is active can impact TSYS’ revenues differently. Active accounts are accounts that have had monetary activity either during the current month or in the past 90 days based on contractual definition. Inactive accounts are accounts that have not had a monetary transaction (such as a purchase or payment) in the past 90 days. The more active an account is, the more revenue is generated for TSYS (items such as transactions and authorizations processed and statements billed).

Occasionally, a client will purge inactive accounts from its portfolio. An inactive account typically will only generate an AOF charge. A processing client will periodically review its cardholder portfolio based upon activity and usage. Each client, based upon criteria individually set by the client, will flag an account to be “purged” from TSYS’ system and deactivated.

A deconversion involves a client migrating all of its accounts to an in-house solution or another processor. Account deconversions include active and inactive accounts and can impact the Company’s revenues significantly more than an account purge.

A sale of a portfolio typically involves a client selling a portion of its accounts to another party. A sale of a portfolio and a deconversion impact the Company’s financial statements in a similar fashion, although a sale usually has a smaller financial impact due to the number of accounts typically involved.

TSYS’ revenues in its Merchant Services segment are influenced by several factors, including volumes related to transactions and dollar sales volume, which are approximately 93.4% of this segment’s revenues. The remaining 6.6% of Merchant Services’ revenues are derived from value added services, monthly statement fees, compliance fees, and miscellaneous services.

TSYS’ revenues in its NetSpend segment primarily consist of a portion of the service fees and interchange revenues received by NetSpend’s prepaid card Issuing Banks in connection with the programs managed by NetSpend. For the year ended December 31, 2013, 74.9% of revenues was derived from fees charged to cardholders and 25.1% of revenues was derived from interchange. Service fee revenues are driven by the number of active cards, and in particular by the number of cards with direct deposit. Cardholders with direct deposit generally initiate more transactions and generate more revenues than those that do not take advantage of this feature. Interchange revenues are driven by gross dollar volume. Substantially all of the NetSpend segment’s revenues are volume driven as they are driven by the active card and gross dollar volume indicators.

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A summary of the consolidated financial highlights for the years ended December 31, 2013, 2012 and 2011 is provided below:

	Years Ended December 31,						Percent Change
(in millions)	2013		2012		2011		2013 vs. 2012			2012 vs. 2011
Total revenues	$	2,132.4	$	1,871.0		1,809.0		14.0	%		3.4	%
Operating income		386.2		357.7		322.5		8.0			10.9
Net income attributable to TSYS common shareholders		244.8		244.3		220.6		0.2			10.7
Basic earnings per share (EPS)1		1.30		1.30		1.15		0.0			13.0
Diluted EPS		1.29		1.29		1.15		(0.2	)		12.2
Adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA)2		634.2		546.9		508.1		16.0			7.6
Adjusted cash EPS3		1.72		1.46		1.29		17.8			12.9
Cash flows from operating activities		452.4		455.8		436.3		(0.7	)		4.5

1 Basic and diluted EPS is computed based on the two-class method in accordance with the guidance under ASC 260 “Earnings Per Share”. Refer to Note 25 in the consolidated financial statements for more information on EPS.

2 Adjusted EBITDA is net income excluding equity in income of equity investments, nonoperating income/(expense), income taxes, depreciation, amortization and stock-based compensation expenses and other non-recurring items.

3 Adjusted cash EPS is adjusted cash earnings divided by weighted average shares outstanding used for basic EPS calculations. Adjusted cash earnings is net income excluding the after-tax impact of stock-based compensation expenses, amortization of acquisition intangibles and other nonrecurring items.

Total revenues increased 14.0%, or $261.4 million, for the year ended December 31, 2013, compared to the year ended December 31, 2012, which increased 3.4%, or $62.0 million, compared to the year ended December 31, 2011. The increases in revenues for 2013 and 2012 include decreases of $20.3 million and $6.0 million, respectively, related to the effects of currency translation of the Company’s foreign-based subsidiaries and branches.

Excluding reimbursable items, revenues increased 16.9%, or $273.3 million, for the year ended December 31, 2013, compared to the year ended December 31, 2012, which increased 5.0%, or $77.8 million, compared to the year ended December 31, 2011. The Company expanded its product and service offerings through acquisitions during 2013, 2012, and 2011. The impact of these acquisitions for the years ended December 31, 2013, 2012, and 2011 was $270.2 million, $27.1 million, and $42.4 million, respectively.

Below is a summary of AOF for the Company’s North America Services and International Services segments:

(in millions)	As of December 31,
	2013		2012		Percent Change
Consumer Credit		229.0		200.5		14.2	%
Retail		27.8		25.0		11.0
Total Consumer		256.8		225.5		13.9
Commercial		39.9		37.1		7.6
Other		18.9		12.8		47.6
Subtotal1		315.6		275.4		14.6
Prepaid/Stored Value2		118.0		115.9		1.8
Government Services3		62.2		57.0		9.2
Commercial Card Single Use4		45.3		31.1		45.4
Total AOF		541.1		479.4		12.9	%

1 Traditional accounts include consumer, retail, commercial, debit and other accounts. These accounts are grouped together due to the tendency to have more transactional activity than prepaid, government services and single use accounts.

2 These accounts tend to have less transactional activity than the traditional accounts. Prepaid and stored value cards are issued by firms through retail establishments to be purchased by consumers to be used at a later date. These accounts tend to be the least active of all accounts on file.

3 Government services accounts are disbursements of student loan accounts issued by the Department of Education, which have minimal activity.

4 Commercial card single use accounts are one-time use accounts issued by firms to book lodging and other travel related expenses.

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Major Customer

The Company works to maintain a large and diverse customer base across various industries. A significant amount of the Company’s revenues are derived from long-term contracts with large clients. TSYS derives revenues from providing various processing and other services to these clients, including processing of consumer and commercial accounts, as well as revenues for reimbursable items. The loss of one of the Company’s large clients could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

On July 19, 2012, TSYS announced that it finalized a master services agreement, with a minimum six year term, with Bank of America to provide processing services for its consumer credit card portfolios in the U.S. In addition, TSYS will continue to process Bank of America’s commercial credit card portfolios in the U.S. and internationally. TSYS plans to complete the conversion of Bank of America’s consumer card portfolio from its in-house processing system in the third quarter of 2014. Following the processing term, the agreement provides Bank of America the option to use the TS2 software pursuant to a license under a long-term payment structure for purposes of processing its consumer card portfolio.

The master services agreement with Bank of America provides for a tiered-pricing arrangement for both the consumer card portfolio and the existing commercial card portfolios.

In June 2009, Bank of America announced that it formed a new joint venture to provide merchant services. In November 2010, TSYS and Bank of America agreed to a new agreement, during the term of which TSYS expects merchant services revenues from Bank of America to decline as Bank of America transitions its services to its new joint venture.

Effective June 2013, the Company renewed its processing agreement, which includes revenue minimums, with Bank of America for an additional two years.

The loss of Bank of America as a merchant services client is not expected to have a material adverse effect on TSYS’ financial position, results of operations or cash flows. However, the loss will have a significant adverse effect on the Merchant Services segment’s financial position, results of operations and cash flows.

Refer to Note 21 in the consolidated financial statements for more information on major customers.

Operating Segments

TSYS’ services are provided through four operating segments: North America Services, International Services, Merchant Services, and NetSpend.

The Company’s North America Services and International Services segments have many long-term customer contracts with card issuers providing account processing and output services for printing and embossing items. These contracts generally require advance notice prior to the end of the contract if a client chooses not to renew. Additionally, some contracts may allow for early termination upon the occurrence of certain events such as a change in control. The termination fees paid upon the occurrence of such events are designed primarily to cover balance sheet exposure related to items such as capitalized conversion costs or client incentives associated with the contract and, in some cases, may cover a portion of lost future revenue and profit. Although these contracts may be terminated upon certain occurrences, the contracts provide the segment with a steady revenue stream since a vast majority of the contracts are honored through the contracted expiration date.

These services are provided throughout the period of each account’s use, starting from a card-issuing client processing an application for a card. Services may

include processing the card application, initiating service for the cardholder, processing each card transaction for the issuing retailer or financial institution and accumulating the account’s transactions. Fraud management services monitor the unauthorized use of accounts which have been reported to be lost, stolen, or which exceed credit limits. Fraud detection systems help identify fraudulent transactions by monitoring each account holder’s purchasing patterns and flagging unusual purchases. Other services provided include customized communications to cardholders, information verification associated with granting credit, debt collection, and customer service.

TSYS’ revenues in its North America Services and International Services segments are derived from electronic payment processing. There are certain basic core services directly tied to accounts on file and transactions. These are provided to all of TSYS’ processing clients. The core services begin with an account on file.

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The core services include housing an account on TSYS’ system (AOF), authorizing transactions (authorizations), accumulating monthly transactional activity (transactions) and providing a monthly statement (statement generation). From these core services, TSYS’ clients also have the option to use fraud and portfolio management services. Collectively, these services are considered volume-based revenues.

Non-volume related revenues include processing fees which are not directly associated with AOF and transactional activity, such as value added products and services, custom programming and certain other services, which are only offered to TSYS’ processing clients.

Value added products and services, which includes services such as data analytics and application processing, are primarily non-volume related, are only offered to TSYS’ processing clients (i.e., indirectly derived from accounts on file). These ancillary products and services, along with offerings such as card production, statement production, managed services, customized reporting and custom programming provided to clients at an hourly rate, are considered non-volume based products and services.

Additionally, certain clients license the Company’s processing systems and process in-house. Since the accounts are processed outside of TSYS for licensing arrangements, the AOF and other volumes are not available to TSYS. Thus, volumes reported by TSYS do not include volumes associated with licensing.

A summary of each segment’s results follows:

North America Services

The North America Services segment provides issuer account solutions for financial institutions and other organizations primarily based in North America. Growth in revenues and operating profit in this segment is derived from retaining and growing the core business and improving the overall cost structure. Growing the core business comes primarily from an increase in account usage, growth from existing clients (also referred to as organic growth) and sales to new clients and the related account conversions.

This segment has one major customer. Below is a summary of the North America Services segment:

	Years Ended December 31,									Percent Change
(in millions)	2013			2012			2011			2013 vs. 2012			2012 vs. 2011
Total revenues	$	1,000.1			965.4			954.6			3.6	%		1.1	%
Revenues before reimbursable items		860.6			826.8			809.1			4.1			2.2
Adjusted segment operating income1		314.6			289.5			254.6			8.7			13.7
Adjusted segment operating margin2		36.6	%		35.0	%		31.5	%
Key indicators:
AOF		481.9			424.8			351.4			13.4			20.9
Transactions		9,132.8			8,102.3			7,218.4			12.7			12.2

1 Adjusted segment operating income excludes acquisition intangible amortization and expenses associated with Corporate Administration and Other.

2 Adjusted segment operating margin equals adjusted segment operating income divided by revenues before reimbursable items.

Total segment revenues increased $34.7 million for 2013, as compared to 2012. The increase is attributable to an $80.0 million increase in new business, internal growth and reimbursable items, partially offset by $45.3 million decrease related to client deconversion, price reductions and other adjustments. Total segment revenues increased $10.8 million for 2012, as compared to 2011. The increase is attributable to $67.3 million increase in new business and internal growth partially offset by $49.7 million decrease related to client deconversions, price reductions and termination fees and a $6.9 million decrease in reimbursable items due to lost business. The decreases in 2013 and 2012 caused by price reductions are related to a tiered-pricing arrangement signed in the third quarter of 2012.

The increase in adjusted segment operating income for 2013, as compared to 2012, is driven by an increase in revenues while total operating expenses decreased. The increase in adjusted segment operating income for 2012, as compared to 2011, is driven by an increase in revenues while expenses remained flat.

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For the year ended December 31, 2013, approximately 50.4% of revenues before reimbursable items of TSYS’ North America Services segment are driven by the volume of accounts on file and transactions processed and approximately 49.6% were derived from non-volume based revenues, such as processing fees, value-added products and services, custom programming and licensing arrangements.

	Years Ended December 31,						Percent Change
(in millions)	2013		2012		2011		2013 vs. 2012			2012 vs. 2011
Volume-based revenues	$	433.7		405.3		384.0		7.0	%		5.5	%
Non-volume related revenues:
Processing fees		195.4		183.1		184.4		6.7			(0.7	)
Value-added, custom programming, licensing and other		110.5		124.1		123.5		(11.0	)		0.5
Output and managed services		121.1		114.3		117.2		5.9			(2.5	)
Total non-volume related revenues		427.0		421.5		425.1		1.3			(0.8	)
Total revenues before reimbursable items		860.7		826.8		809.1		4.1			2.2
Reimbursable items		139.4		138.6		145.5		0.7			(4.7	)
Total revenues	$	1,000.1		965.4		954.6		3.6	%		1.1	%

International Services

The International Services segment provides issuer card solutions to financial institutions and other organizations primarily based outside the North America region. Growth in revenues and operating profit in this segment is derived from retaining and growing the core business and improving the overall cost structure. Growing the core business comes primarily from an increase in account usage, growth from existing clients and sales to new clients and the related account conversions.

This segment has one major customer.

Below is a summary of the International Services segment:

	Years Ended December 31,									Percent Change
(in millions)	2013			2012			2011			2013 vs. 2012			2012 vs. 2011
Total revenues	$	409.6			413.5			394.8			(0.9	)%		4.7	%
Revenues before reimbursable items		389.5			396.1			380.1			(1.7	)		4.2
Adjusted segment operating income1		45.9			29.4			43.6			56.1			(32.6	)
Adjusted segment operating margin2		11.8	%		7.4	%		11.5	%
Key indicators:
AOF		59.2			54.6			52.8			8.4			3.4
Transactions		2,007.9			1,674.0			1,426.6			19.9			17.3

1 Adjusted segment operating income excludes acquisition intangible amortization and expenses associated with Corporate Administration and Other.

2 Adjusted segment operating margin equals adjusted segment operating income divided by revenues before reimbursable items.

Total segment revenues decreased $3.9 million for 2013, as compared to 2012. The decrease is mainly attributable to $20.3 million foreign currency translation, $18.9 million of lost business, and $9.7 million in termination fees, price reductions and other adjustments, which is partially offset by an increase of $42.3 million in new business and organic growth and $2.7 million in reimbursable items. Total segment revenues increased $18.7 million for 2012, as compared to 2011. This increase is attributable to an increase of $37.4 million in new business and organic growth and a $2.6 million increase in reimbursable items, which is partially offset by a decrease of $6.5 million related to the impact of foreign currency translation, and $14.8 million of lost business.

The increases in adjusted segment operating income for 2013, as compared to 2012, are driven primarily from changes in foreign currency exchange rates and decreases in employment expenses.

TSYS terminated its Japan Gift Card program in February 2013 due to expected negative future cash flows resulting from the loss of two of the Gift Card program’s major customers. The program’s negative future cash flows indicated that the carrying value of its assets would not be recovered. As a result, a provision for the program’s future losses was made and its assets were written down to zero in 2012.

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Movements in foreign currency exchange rates as compared to the U.S. dollar can result in foreign denominated financial statements being translated into more or fewer U.S. dollars, which impact the comparison to prior periods when the U.S. dollar was stronger or weaker.

For the year ended December 31, 2013, approximately 47.8% of the revenues before reimbursable items of TSYS’ International Services segment are driven by the volume of accounts on file and transactions processed and approximately 52.2% are derived from non-volume based revenues, such as processing fees, value-added products and services, custom programming and licensing arrangements.

	Years Ended December 31,						Percent Change
(in millions)	2013		2012		2011		2013 vs. 2012			2012 vs. 2011
Volume-based revenues	$	186.2		190.6		186.7		(2.3	)%		2.2	%
Non-volume related revenues:
Processing fees		67.7		62.2		59.8		8.8			4.1
Value-added, custom programming, licensing and other		95.1		97.6		82.4		(2.5	)		18.5
Output and managed services		40.5		45.8		51.2		(11.6	)		(10.6	)
Total non-volume related revenues		203.3		205.6		193.4		(1.1	)		6.4
Total revenues before reimbursable items		389.5		396.2		380.1		(1.7	)		4.3
Reimbursable items		20.1		17.3		14.7		17.1			17.8
Total revenues	$	409.6		413.5		394.8		(0.9	)%		4.8	%

Merchant Services

The Merchant Services segment provides merchant services and related services to clients based primarily in the United States. The Merchant Services segment’s revenues are derived from providing processing services, acquiring solutions, related systems and integrated support services to merchant acquirers and merchants. Revenues from merchant services include processing all payment forms including credit, debit, prepaid, electronic benefit transfer and electronic check for merchants of all sizes across a wide array of market verticals. Merchant services include authorization and capture of transactions; clearing and settlement of transactions; information reporting services related to transactions; merchant billing services; and point-of-sale equipment sales and service.

The revenues of the Merchant Services segment increased in 2012 and 2013 due to the acquisitions of Central Payment Co., LLC (CPAY) and ProPay, Inc. (ProPay) in 2012. For more information on these acquisitions, refer to Note 23 in the consolidated financial statements.

This segment has no major customers.

Below is a summary of the Merchant Services segment:

	Years Ended December 31,									Percent Change
(in millions)	2013			2012			2011			2013 vs. 2012			2012 vs. 2011
Total revenues	$	533.0			512.6			488.0			4.0	%		5.0	%
Revenues before reimbursable items		446.3			409.7			373.2			8.9			9.8
Adjusted segment operating income1		154.0			156.3			133.7			(1.5	)		16.9
Adjusted segment operating margin2		34.5	%		38.1	%		35.8	%
Key indicators:
POS transactions		4,359.8			4,877.6			4,955.5			(10.6	)		(1.6	)
Dollar sales volume	$	44,144.0			38,994.0			33,674.2			13.2			15.8

¹  Adjusted segment operating income excludes acquisition intangible amortization and expenses associated with Corporate Administration and Other.

²  Adjusted segment operating margin equals adjusted segment operating income divided by revenues before reimbursable items.

Total segment revenues increased $20.4 million for 2013, as compared to 2012. This increase is attributable to a $62.3 million increase from acquisitions and $26.6 million in new business and internal growth partially offset by $52.4 million associated with lost business, deconversions, and price reductions as well as a $16.1 million decrease in reimbursable items. Total segment revenues increased $24.6 million for 2012, as compared to 2011. This increase is attributable to a $27.1 million increase from acquisitions and $16.9 million in new business and internal growth partially offset by $7.3 million associated with lost business, deconversions, and price compression, and an $11.9 million decrease in reimbursable items.

The decrease in adjusted segment operating income for 2013 is driven by lower third party processing revenues and incremental costs related to integration projects. The increase in adjusted segment operating income for 2012, compared to 2011, is driven primarily by the acquisitions of CPAY and ProPay in 2012.

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The Merchant Services segment results are driven by dollar sales volume and the authorization and capture transactions processed at the point-of-sale and clearing and settlement transactions. This segment’s authorization and capture transactions are primarily through dial-up or Internet connectivity.

For the year ended December 31, 2013, approximately 93.4% of the revenues of TSYS’ Merchant Services segment relate to volume-based services and, are influenced by several factors, including volumes related to transactions and dollar sales volume. The remaining 6.6% of this segment’s revenues are derived from value added services, chargebacks, managed services, investigation, risk and collection services performed.

NetSpend

The NetSpend segment is a program manager for FDIC-insured depository institutions that issue GPR cards and payroll cards and provide alternative financial services to underbanked consumers in the United States. The products within this segment provide underbanked consumers with access to FDIC-insured depository accounts with a menu of pricing and features specifically tailored to their needs. This segment has an extensive distribution and reload network comprised of financial service centers, employers, and retail locations throughout the United States. The NetSpend segment markets prepaid cards through multiple distribution channels, including alternative financial service providers, traditional retailers, direct-to-consumer and online marketing programs and contractual relationships with corporate employers.

The NetSpend segment’s revenues primarily consist of a portion of the service fees and interchange revenues received by NetSpend’s prepaid card Issuing Banks in connection with the programs managed by this segment. Cardholders are charged fees for transactions including fees for PIN and signature-based purchase transactions made using their prepaid cards, for ATM withdrawals or other transactions conducted at ATMs, for balance inquiries, and monthly maintenance fees among others. Cardholders are also charged fees associated with additional products and services offered in

connection with certain cards including the use of overdraft features, bill payment options, custom card designs and card-to-card transfers of funds initiated through call centers. The NetSpend segment also earns revenues from a portion of the interchange fees remitted by merchants when cardholders make purchase transactions using their cards. Subject to applicable law, interchange fees are fixed by card associations and network organizations.

Below is a summary of the NetSpend segment:

(dollars in millions)	Year Ended December 31, 2013
Total revenues	$	207.9
Revenues before reimbursable items		207.9
Adjusted segment operating income1		59.7
Adjusted segment operating margin2		28.7	%
Key indicators:
Number of active cards		2,835.0
Number of active cards with direct deposit		1,321.1
Percentage of active cards with direct deposit		46.6	%
Gross dollar volume	$	7,748.5

¹  Adjusted segment operating income excludes acquisition intangible amortization and expenses associated with Corporate Administration and Other.

²  Adjusted segment operating margin equals adjusted segment operating income divided by revenues before reimbursable items.

The results noted above are for the period from July 1, 2013, the date that TSYS acquired NetSpend, through December 31, 2013. Number of active cards represents the total number of prepaid cards that have had a PIN or signature-based purchase transaction, a point-of-sale load transaction or an ATM withdrawal within three months of the date of determination. Number of active cards with direct deposit represents the number of active cards that have had a direct deposit load within three months of the date of determination. Gross dollar volume represents the total dollar volume of debit transactions and cash withdrawals made using the prepaid cards the NetSpend segment manages.

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NetSpend segment revenues total $207.9 million with 74.9% of revenues derived from fees charged to cardholders and 25.1% of revenues derived from interchange. Service fee revenues are driven by the number of active cards which totaled approximately 2.8 million as of December 31, 2013, and in particular by the number of cards with direct deposit. Cardholders with direct deposit generally initiate more transactions and generate more revenues than those that do not take advantage of this feature. Interchange revenues are driven by gross dollar volume, which totaled approximately $7.7 billion for the period ended December 31, 2013. Substantially all of the NetSpend segment revenues are volume driven as they are driven by the active card and gross dollar volume indicators.

Cardholder funds and deposits related to NetSpend’s prepaid products are held at FDIC-insured Issuing Banks for the benefit of the cardholders. NetSpend currently has active agreements with seven Issuing Banks.

NetSpend’s prepaid card business derived approximately one-third of its revenues from cardholders acquired through one of its third-party distributors.

Operating Expenses

The Company’s operating expenses consist of cost of services and selling, general and administrative expenses. Cost of services describes the direct expenses incurred in performing a particular service for customers, including the cost of direct labor expense in putting the service in saleable condition. Selling, general and administrative expenses are incurred in selling or marketing and for the direction of the enterprise as a whole, including accounting, legal fees, officers’ salaries, investor relations and mergers and acquisitions.

The changes in cost of services, and selling, general and administrative expenses for the years ended December 31, 2013 and 2012 include an increase of $18.8 million and $10.7 million, respectively, related to the effects of currency translation of the Company’s foreign based subsidiaries and branches. The impact of acquisitions on consolidated total expenses was $155.2 million in 2013, $20.0 million in 2012, and $39.1 million in 2011.

Federal legislation was recently enacted which makes extensive changes to the current system of health care insurance and benefits. The Company has reviewed the legislation and, based upon information available, estimates the impact of the legislation was approximately $1.1 million on 2013 and $600,000 on 2012.

The Company’s merger and acquisition expenses were $14.2 million, $1.7 million and $1.3 million for the years ended December 31, 2013, 2012, and 2011, respectively. These expenses consist of legal, accounting and professional fees, as well as personnel costs for severance and retention.

Nonoperating Income (Expense)

Nonoperating income (expense) consists of interest income, interest expense, gains and losses on currency translations and gains and losses on investments in private equity. Nonoperating income decreased in 2013 as compared to 2012, and decreased in 2012 as compared to 2011.

Interest income for 2013 and 2012 was $1.5 million. The $1.5 million in 2012 was a 140.8% increase compared to $620,000 in 2011. The variation in interest income is primarily attributable to changes in short-term interest rates in 2012 and 2011 and the amount of cash available for investments.

Interest expense for the year ended December 31, 2013 was $32.7 million, a $29.5 million increase when compared to $3.2 million in 2012 and 2011. The Company’s interest expense related to a bridge loan facility and bonds was $5.9 million and

$20.0 million, respectively, for the year ended December 31, 2013. These expenses were related to financing the NetSpend acquisition.

For the years ended December 31, 2013, 2012 and 2011, the Company recorded translation losses of approximately $1.0 million, $2.0 million and $3.1 million, respectively, related to intercompany loans and foreign denominated cash and accounts receivable balances.

The Company recorded gains on its investments in private equity of $966,000 and $898,000 for the years ended December 31, 2013 and 2012, respectively, due to changes in fair value.

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Income Taxes

Income tax expense was $112.4 million, $115.1 million, and $102.6 million in 2013, 2012 and 2011, respectively, representing effective income tax rates of 31.4%, 31.9%, and 31.6%, respectively. The calculation of the effective tax rate excludes noncontrolling interest in consolidated subsidiaries’ net income and includes equity in income of equity investments in pretax income.

During 2013, the Company generated foreign net operating losses and state tax credits in excess of its utilization capacity based on both the Company’s current operations and with consideration of future tax planning strategies. Based upon these same considerations, the Company reassessed its need for valuation allowances in all jurisdictions.

Accordingly, the Company experienced a net increase in its valuation allowance for deferred income tax assets of $0.5 million.

TSYS has adopted the permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain foreign subsidiaries. As a result, TSYS considers foreign earnings related to these foreign operations to be permanently reinvested. No provision for U.S. federal and state incomes taxes has been made in the consolidated financial statements for those non-U.S. subsidiaries whose earnings are considered to be reinvested. The amount of undistributed earnings considered to be “reinvested” which may be subject to tax upon distribution was approximately $79.0 million at December 31, 2013. Although TSYS does not intend to repatriate these earnings, a distribution of these non-U.S. earnings in the form of dividends, or otherwise, would subject the Company to both U.S. federal and state income taxes, as adjusted for non-U.S. tax credits, and withholding taxes payable to the various non-U.S. countries. Determination of the amount of any unrecognized deferred income tax liability on these undistributed earnings is not practicable.

In 2013, TSYS reassessed its contingencies for foreign, federal and state exposures, which resulted in a net decrease in tax contingency amounts of approximately $6.3 million.

Refer to Note 14 in the consolidated financial statements for more information on income taxes.

Equity in Income of Equity Investments

TSYS’ share of income from its equity in equity investments was $13.0 million, $10.2 million, and $8.7 million for 2013, 2012 and 2011, respectively. The increase in equity income is the result of the growth in CUP Data. Refer to Note 11 in the consolidated financial statements for more information on equity investments.

Net Income

Net income increased 2.7% to $256.6 million in 2013, compared to 2012. In 2012, net income increased 12.2% to $249.9 million, compared to $222.7 million in 2011.

Net income attributable to noncontrolling interests in 2013 increased to $11.8 million, as compared to $5.6 million in 2012 and $2.1 million in 2011. The increases in 2013 and 2012, as compared to 2011, were the result of the acquisition of 60% of CPAY in 2012.

In 2013, net income attributable to TSYS common shareholders increased 0.2% to $244.8 million (basic and diluted EPS of $1.30 and $1.29, respectively), compared to $244.3 million (basic and diluted EPS of $1.30 and $1.29, respectively) in 2012. Net income attributable to TSYS common shareholders increased 10.8% to $244.3 million (basic and diluted EPS of $1.30 and $1.29, respectively) in 2012, compared to $220.6 million (basic and diluted EPS of $1.15) in 2011.

Non-GAAP Financial Measures

Management evaluates the Company’s operating performance based upon operating margin excluding reimbursables, adjusted cash EPS, and adjusted EBITDA, which are all non-generally accepted accounting principle (non-GAAP) measures. TSYS also uses these non-GAAP financial measures to evaluate and assess TSYS’ financial performance against budget.

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Although not a substitute for GAAP, TSYS believes that non-GAAP financial measures are important to enable investors to understand and evaluate its ongoing operating results. Accordingly, TSYS includes non-GAAP financial measures when reporting its financial results to shareholders and investors in order to provide them with an additional tool to evaluate TSYS’ ongoing business operations. TSYS believes that the non-GAAP financial measures are representative of comparative financial performance that reflects the economic substance of TSYS’ current and ongoing business operations.

Although non-GAAP financial measures are often used to measure TSYS’ operating results and assess its financial performance, they are not necessarily comparable to similarly titled captions of other companies due to potential inconsistencies in the method of calculation.

TSYS believes that its use of non-GAAP financial measures provides investors with the same key financial performance indicators that are utilized by management to assess TSYS’ operating results, evaluate the business and make operational decisions on a prospective, going-forward basis. Hence, management provides disclosure of non-GAAP financial measures to give shareholders and potential investors an opportunity to see TSYS as viewed by management, to assess TSYS with some of the same tools that management utilizes internally and to be able to compare such information with prior periods. TSYS believes that the presentation of GAAP financial measures alone would not provide its shareholders and potential investors with the ability to appropriately analyze its ongoing operational results, and therefore expected future results. TSYS therefore believes that inclusion of non-GAAP financial measures provides investors with additional information to help them better understand its financial statements just as management utilizes these non-GAAP financial measures to better understand the business, manage budgets and allocate resources.

The following tables provide a reconciliation of GAAP to non-GAAP financial measures:

Adjusted EBITDA

	Years Ended December 31,
(in thousands)	2013			2012			2011
Net income	$	256,597			249,923			222,662
Adjusted for:
Equity in income of equity investments, net of taxes		(13,047	)		(10,171	)		(8,708	)
Income taxes		112,369			115,102			102,597
Nonoperating expenses, net		30,328			2,798			5,905
Depreciation and amortization		205,351			170,610			169,165
EBITDA		591,598			528,262			491,621
Adjusted For:
Share-based compensation		28,933			18,621			16,477
NetSpend merger and acquisition expenses*		13,634			—			—
Adjusted EBITDA	$	634,165			546,883			508,098

* Excludes share-based compensation

Adjusted Cash Earnings Per Share

	Years Ended December 31,
(in thousands except per share data)	2013		2012		2011
Net income attributable to TSYS common shareholders
As reported (GAAP)	$	244,750		244,280		220,559
Adjust for amounts attributable to TSYS common shareholders (net of taxes):
Acquisition intangible amortization		43,759		17,282		16,124
Share-based compensation		19,838		12,683		11,265
Cash earnings		308,347		274,245		247,948
NetSpend merger and acquisition expenses		15,251		—		—
Adjusted cash earnings	$	323,598		274,245		247,948
Basic EPS—Net income attributable to TSYS common shareholders
As reported (GAAP)	$	1.30		1.30		1.15
Adjust for amounts attributable to TSYS common shareholders (net of taxes):
Acquisition intangible amortization		0.23		0.09		0.08
Share-based compensation		0.11		0.07		0.06
Cash earnings per share		1.64		1.46		1.29
NetSpend merger and acquisition expenses		0.08		—		—
Adjusted cash earnings per share*	$	1.72		1.46		1.29
Average common shares and participating securities		188,391		188,030		191,946

* Adjusted cash EPS amounts do not total due to rounding.

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Revenues Before Reimbursable Items and Operating Margin Excluding Reimbursable Items

	Years Ended December 31,
(in thousands except per share data)	2013			2012			2011
Operating income (a)	$	386,247			357,652			322,456
Total revenues (b)	$	2,132,353			1,870,972			1,808,966
Less reimbursable items		240,598			252,481			268,268
Revenues before reimbursable items (c)	$	1,891,755			1,618,491			1,540,698
Operating margin (as reported) (a)/(b)		18.11	%		19.12	%		17.83	%
Operating margin excluding reimbursables (a)/(c)		20.42	%		22.10	%		20.93	%

Projected Outlook for 2014

As compared to 2013, TSYS expects its 2014 total revenues to increase by 17%-19%, its revenues before reimbursable items to increase by 19%-21%, its adjusted EBITDA to increase by 17%-20%, and its adjusted cash EPS attributable to TSYS common shareholders to increase by 11%-13%, based on the following assumptions with respect to 2014: (1) there will be no significant movements in the London Interbank Offered Rate (LIBOR) and TSYS will not make any significant draws on the remaining balance of its revolving credit facility; (2) there will be no significant movement in foreign currency exchange rates related to TSYS’ business; (3) TSYS will not incur significant expenses associated with the conversion of new large clients other than included in the 2014 estimate, additional acquisitions, or any significant impairment of goodwill or other intangibles; (4) there will be no deconversions of large clients during the year; (5) there will be minimal synergies from the NetSpend acquisition for 2014; and (6) the economy will not worsen.

Financial Position, Liquidity and Capital Resources

The Consolidated Statements of Cash Flows detail the Company’s cash flows from operating, investing and financing activities. TSYS’ primary methods for funding its operations and growth have been cash generated from current operations, the use of leases and the occasional use of borrowed funds to supplement financing of capital expenditures.

Cash Flows from Operating Activities

	Years Ended December 31,
(in thousands)	2013			2012		2011
Net income	$	256,597			249,923		222,662
Depreciation and amortization		205,351			170,610		169,165
Other noncash items and charges, net		76,744			20,593		25,811
Net change in current and other assets and current and other liabilities		(86,294	)		14,627		18,681
Net cash provided by operating activities	$	452,398			455,753		436,319

TSYS’ main source of funds is derived from operating activities, specifically net income. The decrease in 2013, as compared to 2012, in net cash provided by operating activities was primarily the result of the net change in current and other assets and current and other liabilities. The increase in 2012, as compared to 2011, in net cash provided by operating activities was primarily the result of increased earnings.

Net change in current and other assets and current and other liabilities include accounts receivable, prepaid expenses, other current assets and other assets, accounts payable, accrued salaries and employee benefits and other liabilities. The change in accounts receivable between the years is the result of timing of collections compared to billings. The change in accounts payable and other liabilities between years is the result of the timing of payments and funding of performance-based incentives.

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Cash Flows from Investing Activities

	Years Ended December 31,
(in thousands)	2013			2012			2011
Cash used in acquisitions, net of cash acquired	$	(1,314,660	)		(188,698	)		(47,909	)
Additions to licensed computer software from vendors		(63,635	)		(33,001	)		(19,502	)
Additions to contract acquisition costs		(55,965	)		(34,384	)		(31,623	)
Purchases of property and equipment, net		(40,598	)		(31,395	)		(26,938	)
Additions to internally developed computer software		(33,600	)		(19,285	)		(17,882	)
Purchase of private equity investments		(1,378	)		(3,031	)		(1,573	)
Subsidiary repurchase of noncontrolling interests		—			—			(493	)
Proceeds from sale of trade name		—			—			4,500
Net cash used in investing activities	$	(1,509,836	)		(309,794	)		(141,420	)

The major uses of cash for investing activities in 2013, 2012 and 2011 were for acquisitions, additions to contract acquisition costs, equipment, licensed computer software from vendors and internally developed computer software.

Cash Used in Acquisitions

In 2013, the Company used cash of $1.3 billion in the acquisition of NetSpend. In 2012, the Company used cash of $188.7 million in the acquisitions of ProPay and CPAY. In 2011, the Company used cash of $42.0 million in the acquisition of TermNet. In May 2011, TSYS made a payment of $6.0 million of contingent merger consideration in connection with the purchase of Infonox on the Web, which was recorded as goodwill. Refer to Note 23 in the consolidated financial statements for more information on these acquisitions.

Contract Acquisition Costs

TSYS makes cash payments for processing rights, third-party development costs and other direct salary-related costs in connection with converting new customers to the Company’s processing systems. The Company’s investments in contract acquisition costs were $56.0 million in 2013, $34.4 million in 2012 and $31.6 million in 2011. The Company made cash payments for processing rights of $9.7 million, $14.4 million and $5.2 million in 2013, 2012 and 2011, respectively. Conversion cost additions were $46.3 million, $20.0 million and $26.4 million in 2013, 2012 and 2011, respectively. The increase in conversion costs in 2013 compared to 2012 is primarily related to the conversion of Bank of America’s consumer card portfolio.

Property and Equipment

Capital expenditures for property and equipment were $40.6 million in 2013, compared to $31.4 million in 2012 and $26.9 million in 2011. The majority of capital expenditures in 2013 related to investments in new computer processing hardware and building improvements. The majority of capital expenditures in 2012 and 2011 related to investments in new computer processing hardware.

Licensed Computer Software from Vendors

Expenditures for licensed computer software from vendors for increases in processing capacity were $63.6 million in 2013, compared to $33.0 million in 2012 and $19.5 million in 2011. The increase in expenditures in 2013 was driven by purchases of software in anticipation of large conversions in 2014 and beyond.

Internally Developed Computer Software Costs

Additions to capitalized software development costs, including enhancements to, and development of, processing systems, were $33.6 million in 2013, $19.3 million in 2012, and $17.9 million in 2011. The increase in capitalized software development costs in 2013 was the result of two corporate-wide initiatives. One initiative is a multi-year, multi-phase initiative that consists of enhancing TSYS’ issuing processing platforms. The other is an innovation initiative focused on enhancing existing product and service offerings through several new product concepts and ideas on how to change existing processes.

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Purchase of Private Equity Investments

In 2011, the Company entered into a limited partnership agreement in connection with its agreement to invest in an Atlanta, Georgia-based venture capital fund focused exclusively on investing in technology-enabled financial services companies. Pursuant to the limited partnership agreement, the Company has committed to invest up to $20 million in the fund so long as its ownership interest in the fund does not exceed 50%. The Company made investments in the fund of $1.4 million, $3.0 million and $1.6 million in 2013, 2012, and 2011, respectively. The Company recorded gains on this investment of $966,000, and $898,000 for the years ended December 31, 2013 and 2012, respectively.

Cash Flows from Financing Activities

	Years Ended December 31,
(in thousands)	2013			2012			2011
Proceeds from long-term borrowings	$	1,395,661			150,000			—
Proceeds from exercise of stock options		40,691			9,672			8,065
Excess tax benefit from share-based payment arrangements		3,528			1,259			(523	)
Purchase of noncontrolling interest		—			—			(174,050	)
Subsidiary dividends paid to noncontrolling shareholders		(7,321	)		(2,797	)		(433	)
Debt issuance costs		(13,573	)		(2,073	)		—
Dividends paid on common stock		(56,510	)		(94,035	)		(53,949	)
Repurchase of common stock under plans and tax withholding		(103,857	)		(74,939	)		(121,271	)
Principal payments on long-term borrowings and capital lease obligations		(166,805	)		(200,052	)		(28,892	)
Net cash provided by (used in) financing activities	$	1,091,814			(212,965	)		(371,053	)

The main source of cash from financing activities has been the use of borrowed funds. The major uses of cash for financing activities have been the principal payment on long term debt and capital lease obligations, purchase of noncontrolling interests, payment of dividends and the purchase of stock under the stock repurchase plan as described below. Net cash provided by financing activities for the year ended December 31, 2013 was $1.1 billion and was primarily the result of proceeds from long term

borrowings in connection with the NetSpend acquisition. Net cash used in financing activities for the year ended December 31, 2012 was $213.0 million and was primarily the result of principal payments on long-term debt borrowings and capital lease obligations, the repurchase of common stock ,and payment of dividends offset by proceeds from borrowings of long-term debt. Net cash used in financing activities for the year ended December 31, 2011 was $371.1 million and was primarily the result of the acquisition of the remaining 49% interest in TSYS Merchant Solutions (TMS), payment of dividends and the repurchase of common stock. Refer to Notes 12 and 23 in the consolidated financial statements for more information on the long-term debt financing and acquisitions.

Financing

In connection with the NetSpend acquisition, the Company obtained commitments for a $1.2 billion 364-day bridge term loan facility. In May 2013, the Company closed the bridge term loan and issued debt of $1.4 billion to finance the NetSpend acquisition. In April 2013, the Company entered into a new credit agreement that provided for a five-year term loan to the Company in the amount of $200.0 million. In May 2013, the Company closed its issuance of $550.0 million aggregate principal amount of 2.375% Senior Notes due 2018 and $550.0 million aggregate principal amount of 3.750% Senior Notes due 2023 (collectively, the “Notes”). The interest on the Notes is payable semiannually. Upon the issuance of the Notes, the Company eliminated its bridge term loan facility. In July 2013, the Company borrowed $100 million on its revolving credit facility which was repaid as of December 31, 2013. In connection with the bridge term loan facility and the aforementioned loans, the Company paid debt issuance costs of $13.6 million in 2013.

In September 2012, TSYS obtained a $150.0 million term loan, which was used to pay off an existing term loan.

During 2008 and 2009, the Company’s International segment borrowed approximately ¥2.0 billion in a Yen-denominated three-year loan to finance activities in Japan. In December 2013, the Company repaid this loan for approximately $19.2 million.

Refer to Note 12 in the consolidated financial statements for further information on TSYS’ long-term debt and financing arrangements.

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Purchase of Noncontrolling Interest

In connection with the acquisition of CPAY, the Company is party to call and put arrangements with respect to the membership units that represent the remaining noncontrolling interest of CPAY. The call arrangement is exercisable by TSYS and the put arrangement is exercisable by the Seller. The put arrangement is outside the control of the Company by requiring the Company to purchase the Seller’s entire equity interest in CPAY at a put price at fair market value. The put arrangement is recorded on the balance sheet and is classified as redeemable noncontrolling interest outside of permanent equity.

The call and put arrangements for CPAY, representing 40% of its total outstanding equity interests, may be exercised at the discretion of TSYS or the Seller on the second anniversary of the closing and upon the recurrence of certain other specified events.

The put option was not redeemable as of December 31, 2013 but a redemption is considered probable based upon the passage of time of the second anniversary date. As such, the Company accretes changes in the redemption value over the period from the date of issuance to the earliest redemption date, which the Company believes to be in one year. If the put option was redeemable as of December 31, 2013, its estimated value would have been approximately $39.7 million. The Company did not accrete any changes to the redemption value as the balance as of December 31, 2013 exceeded the accretion fair value amount.

In February 2014, with cash on hand, the Company purchased an additional 15% interest in CPAY, reducing its redeemable noncontrolling interest to 25%. Refer to Note 26 in the consolidated financial statements for further information on this purchase.

With the acquisition of TMS, the Company was a party to put and call arrangements with respect to the membership units that represented the remaining noncontrolling interest of FNMS Holding, LLC (FNMS Holding). The call and put arrangements could have been exercised at the discretion of TSYS or First National Bank of Omaha (FNBO) on April 1, 2015, 2016 and 2017, upon the dilution of FNBO’s equity ownership in FNMS Holding below a designated threshold and in connection with certain acquisitions by TSYS or FNMS Holding in excess of designated value thresholds.

On January 4, 2011, TSYS announced that it acquired, effective January 1, 2011, the remaining 49% interest in TMS from FNBO. The fair value of the noncontrolling interest in TMS, owned by a private company as of December 31, 2010, was estimated by applying the income and market approaches. In particular, a discounted cash flow method, a guideline companies method, and a recent equity transaction were employed. This fair value measurement is based on significant inputs that are both observable (Level 2) and non-observable (Level 3) in the market as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant data and developed by Company management, (b) a discount rate of approximately 13%, (c) a terminal value based on a long-term sustainable growth rate of approximately 3%, (d) an effective tax rate of approximately 36%, (e) financial multiples of companies deemed to be similar to TMS, and (f) adjustments because of the lack of control or lack of marketability that market participants would consider when estimating the fair value of the noncontrolling interest in TMS.

Refer to Note 23 in the consolidated financial statements for more information on the acquisition of TMS.

Stock Repurchase Plan

In April 2010, TSYS announced a stock repurchase plan to purchase up to 10 million shares of TSYS stock. The shares may be purchased from time to time over the next two years at prices considered attractive to the Company. In May 2011, TSYS announced that its Board had approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 10 million shares to up to 15 million shares of TSYS stock. The expiration date of the plan was also extended to April 30, 2013. In July 2012, TSYS announced that its Board had approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 15 million shares to up to 20 million shares of TSYS stock. The expiration date of the plan was also extended to April 30, 2014. Through December 31, 2013, the Company purchased 16.0 million shares for approximately $338.0 million, at an average price of $21.13.

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On January 28, 2014, TSYS announced that its Board had approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 20 million shares to up to 28 million shares of TSYS stock. With the increase, TSYS has 12.0 million shares available to be repurchased. In addition, the expiration date of the plan was extended to April 30, 2015.

Dividends

Dividends on common stock of $56.5 million were paid in 2013, compared to $94.0 million and $53.9 million in 2012 and 2011, respectively. The Company paid dividends of $0.30 per share in 2013, $0.50 per share in 2012 and $0.28 per share in 2011. The decrease in dividends paid in 2013 compared to 2012 is due to the acceleration of payment of the fourth quarter 2012 dividend. The fourth quarter 2012 dividend payment was paid in December, rather than January, to allow shareholders to benefit from the lower dividend tax rate that was set to expire on December 31, 2012. In October 2011, TSYS announced that its Board of Directors approved a 42.9% increase in the regular quarterly dividend payable on the Company’s common stock from $0.07 per share to $0.10 per share.

Significant Noncash Transactions

During 2013, 2012 and 2011, the Company issued 1.7 million, 311,000, and 206,000 shares of common stock, respectively, to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued in the form of nonvested stock bonus awards for services to be provided in the future by such officers and employees. The grants to the Board of Directors were fully vested on the date of grant. The market value of the common stock at the date of issuance is amortized as compensation expense over the vesting period of the awards.

The Company acquired computer equipment and software under capital lease in the amount of $14.8 million, $5.3 million and $8.1 million in 2013, 2012 and 2011, respectively.

Refer to Notes 18 and 22 in the consolidated financial statements for more information on share-based compensation and significant noncash transactions.

Additional Cash Flow Information

Off-Balance Sheet Financing

TSYS uses various operating leases in its normal course of business. These “off-balance sheet” arrangements obligate TSYS to make payments for computer equipment, software and facilities. These computer and software lease commitments may be replaced with new lease commitments due to new technology. Management expects that, as these leases expire, they will be evaluated and renewed or replaced by similar leases based on need.

The following table summarizes future contractual cash obligations, including lease payments and software arrangements, as of December 31, 2013, for the next five years and thereafter:

	Contractual Cash Obligations Payments Due By Period
(in millions)	Total		1 Year or Less		2-3 Years		3-5 Years		After 5 Years
Debt obligations (principal)	$	1,466		34		67		815		550
Debt obligations (interest)		270		38		75		64		93
Operating leases		466		124		233		67		42
Redeemable noncontrolling interest		40		40		—		—		—
Capital lease obligations		31		23		6		2		—
Dissenting shareholder liability		26		26		—		—		—
Total contractual cash obligations	$	2,299		285		381		948		685

Income Taxes

The total liability for uncertain tax positions under ASC 740, “Income Taxes,” as of December 31, 2013 is $2.7 million. Refer to Note 14 in the consolidated financial statements for more information on income taxes. The Company is not able to reasonably estimate the amount by which the liability will increase or decrease over time; however, at this time, the Company does not expect any significant changes related to these obligations within the next twelve months.

28

Foreign Operations

TSYS operates internationally and is subject to the impact of adverse movements in foreign currency exchange rates. TSYS does not enter into foreign exchange forward contracts to reduce its exposure to foreign currency rate changes; however, the Company continues to analyze the potential use of hedging instruments to safeguard it from significant foreign currency translation risks.

TSYS maintains operating cash accounts outside the United States. Refer to Note 4 in the consolidated financial statements for more information on cash and cash equivalents. TSYS has adopted the permanent reinvestment exception under ASC 740 with respect to future earnings of certain foreign subsidiaries. While some of the foreign cash is available to repay intercompany financing arrangements, remaining amounts are not presently available to fund domestic operations and obligations without paying a significant amount of taxes upon its repatriation. Demand on the Company’s cash has increased as a result of its strategic initiatives. TSYS funds these initiatives through a balance of internally generated cash, external sources of capital, and, when advantageous, access to foreign cash in a tax efficient manner. Where local regulations limit an efficient intercompany transfer of amounts held outside of the U.S., TSYS will continue to utilize these funds for local liquidity needs. Under current law, balances available to be repatriated to the U.S. would be subject to U.S. federal income taxes, less applicable foreign tax credits. TSYS has provided for the U.S. federal tax liability on these amounts for financial statement purposes, except for foreign earnings that are considered permanently reinvested outside of the U.S. TSYS utilizes a variety of tax planning and financing strategies with the objective of having its worldwide cash available in the locations where it is needed.

Impact of Inflation

Although the impact of inflation on its operations cannot be precisely determined, the Company believes that by controlling its operating expenses and by taking advantage of more efficient computer hardware and software, it can minimize the impact of inflation.

Working Capital

TSYS may seek additional external sources of capital in the future. The form of any such financing will vary depending upon prevailing market and other

conditions and may include short-term or long-term borrowings from financial institutions or the issuance of additional equity and/or debt securities such as industrial revenue bonds. However, there can be no assurance that funds will be available on terms acceptable to TSYS. Management expects that TSYS will continue to be able to fund a significant portion of its capital expenditure needs through internally generated cash in the future, as evidenced by TSYS’ current ratio of 2.2:1. As of December 31, 2013, TSYS had working capital of $356.7 million, compared to $344.2 million in 2012 and $269.6 million in 2011.

Legal Proceedings

General

The Company is subject to various legal proceedings and claims and is also subject to information requests, inquiries and investigations arising out of the ordinary conduct of its business. The Company establishes reserves for litigation and similar matters when those matters present loss contingencies that TSYS determines to be both probable and reasonably estimable in accordance with ASC 450, “Contingencies.” In the opinion of management, based on current knowledge and in part upon the advice of legal counsel, all matters not specifically discussed below are believed to be adequately covered by insurance, or, if not covered, the possibility of losses from such matters are believed to be remote or such matters are of such kind or involve such amounts that would not have a material adverse effect on the financial position, results of operations or cash flows of the Company if disposed of unfavorably.

Settlement of Certain Litigation

As previously disclosed, a putative class action entitled Koehler v. NetSpend Holdings, Inc. et. al. (the “Koehler action”) was filed in the Court of Chancery of the State of Delaware on March 1, 2013 and a putative class action entitled Bushansky v. NetSpend Holdings, Inc. et al. (together with the Koehler action, the “Actions”) was filed in the District Court of Travis County, Texas on February 25, 2013, each in connection with TSYS’ proposed merger with NetSpend pursuant to the Merger Agreement. On May 21, 2013, the Delaware Chancery Court issued a memorandum opinion in the Koehler action denying the plaintiff’s motion for a preliminary injunction, which sought to enjoin a shareholder vote on the proposed merger.

29

While TSYS and the other defendants believed that each of the Actions was without merit, in an effort to minimize the cost and expense of any litigation relating to such Actions, on May 29, 2013, the defendants reached an agreement in principle with the plaintiffs regarding settlement of the Actions. In connection with the settlement contemplated by that agreement in principle, and, later, a Settlement Agreement, dated as of September 20, 2013 (the “Settlement Agreement”), the Actions and all claims asserted therein would be dismissed. In addition, pursuant to the terms of the Settlement Agreement, TSYS and/or NetSpend, where applicable, agreed (a) to make certain amendments to the Merger Agreement; (b) that, consistent with the terms of the Merger Agreement, prior to the receipt of approval of the NetSpend stockholders, NetSpend could furnish information to, and engage in discussions and negotiations with, third parties who make unsolicited bona fide acquisition proposals if certain conditions were met; (c) that the special meeting of NetSpend stockholders that was scheduled to be held on May 31, 2013 would be adjourned to June 18, 2013; (d) that NetSpend would not take certain positions with respect to any appraisal proceeding perfected under Delaware law; (e) that certain information would be provided to counsel for the plaintiffs in the Actions in connection with any perfected appraisal proceeding; and (f) without admitting that any of the claims in the Actions have merit or that any supplemental disclosure was required under any applicable statute, rule, regulation or law, that they would acknowledge that the filing and prosecution of the Actions were the cause, in whole or in part, of certain supplemental disclosures made in connection with the proposed merger. The Settlement Agreement was submitted to the Court of Chancery on October 4, 2013, and on December 18, 2013, after considering the terms of the settlement, the Delaware Chancery Court entered an order approving the proposed settlement and dismissing the Actions with prejudice. Under the terms of the Settlement Agreement, the settlement became final upon the expiration of the time for any appeal of the court’s December 18, 2013 order, or thirty days following December 18, 2013.

Forward-Looking Statements

Certain statements contained in this filing which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act (the Act). These forward-looking statements include, among others: (i) TSYS’ expectation that the loss of Bank of America as a merchant services client will not have a material adverse effect on TSYS’ business; (ii) TSYS’ expectation that the Durbin

Amendment will not have a significant negative impact on TSYS’ business; (iii) TSYS’ expectation with respect to foreign currency exchange rates; (iv) TSYS’ expectation with respect to the timing of the conversion of Bank of America’s consumer card portfolios; (v) TSYS’ expectation that it will be able to fund a significant portion of its capital expenditure needs through internally generated cash in the future; (vi) TSYS’ earnings guidance for 2014 total revenues, revenues before reimbursable items, adjusted EBITDA and adjusted cash EPS; (vii) TSYS’ belief with respect to lawsuits, claims and other complaints; (viii) TSYS’ expectation with respect to certain tax matters; (ix) the Board’s intention to continue to pay cash dividends, and the assumptions underlying such statements. In addition, certain statements in future filings by TSYS with the Securities and Exchange Commission, in press releases, and in oral and written statements made by or with the approval of TSYS which are not statements of historical fact constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenue, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of plans and objectives of TSYS or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “estimates,” “projects,” “plans,” “may,” “could,” “should,” “would,” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying these statements.

These statements are based upon the current beliefs and expectations of TSYS’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements. Many of these factors are beyond TSYS’ ability to control or predict. These factors include, but are not limited to:

• the material breach of security of any of TSYS’ systems;

• TSYS incurs expenses associated with the signing of a significant client;

• internal growth rates for TSYS’ existing clients are lower than anticipated whether as a result of unemployment rates, card delinquencies and charge off rates or otherwise;

30

• TSYS does not convert and deconvert clients’ portfolios as scheduled;

• risks associated with foreign operations, including adverse developments with respect to foreign currency exchange rates;

• adverse developments with respect to entering into contracts with new clients and retaining current clients;

• consolidation in the financial services and other industries, including the merger of TSYS clients with entities that are not TSYS processing clients, the sale of portfolios by TSYS clients to entities that are not TSYS processing clients and financial institutions which are TSYS clients otherwise ceasing to exist;

• the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on TSYS and its clients;

• adverse developments with respect to the payment card industry in general, including a decline in the use of cards as a payment mechanism;

• the impact of potential and completed acquisitions, particularly the NetSpend acquisition, including the costs associated therewith, their being more difficult to integrate than anticipated, and the inability to achieve the anticipated growth opportunities and other benefits of the acquisitions;

• the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto;

• the impact of the application of and/or changes in accounting principles;

• TSYS’ inability to timely, successfully and cost-effectively improve and implement processing systems to provide new products, increased functionality and increased efficiencies;

• TSYS’ reliance on financial institution sponsors;

• changes occur in laws, rules, regulations, credit card association rules, the prepaid industry, or other industry standards affecting TSYS and its clients that may result in costly new compliance burdens on TSYS and its clients and lead to a decrease in the volume and/or number of transactions processed;

• successfully managing the potential both for patent protection and patent liability in the context of rapidly developing legal framework for expansive patent protection;

• one or more of the assumptions upon which TSYS’ earnings guidance for 2014 is based is inaccurate;

• the effect of current domestic and worldwide economic conditions;

• other risk factors described in the “Risk Factors” and other sections of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and other filings with the Securities and Exchange Commission; and

• TSYS’ ability to manage the foregoing and other risks.

These forward-looking statements speak only as of the date on which they are made and TSYS does not intend to update any forward-looking statement as a result of new information, future developments or otherwise.

Subsequent Events

On February 11, 2014, with cash on hand, the Company acquired an additional 15% equity interest in CPAY from CPC Holding Company, LLC, a California limited liability company. This purchase

reduced the remaining redeemable noncontrolling interest in CPAY to 25% of its total outstanding equity.

31

Consolidated Balance Sheets

	December 31,
(in thousands, except per share data)	2013			2012
Assets
Current assets:
Cash and cash equivalents (Note 4)	$	278,230			247,612
Accounts receivable, net of allowances for doubtful accounts and billing adjustments of $3.4 million and $3.9 million at 2013 and 2012, respectively		264,238			247,083
Deferred income tax assets (Note 14)		14,770			9,825
Prepaid expenses and other current assets (Note 5)		96,695			70,206
Total current assets		653,933			574,726
Goodwill (Note 6)		1,543,179			518,344
Other intangible assets, net of accumulated amortization (Note 7)		481,419			130,054
Computer software, net of accumulated amortization (Note 8)		369,773			226,917
Property and equipment, net of accumulated depreciation and amortization (Note 9)		265,216			260,389
Contract acquisition costs, net of accumulated amortization (Note 10)		184,890			161,267
Equity investments, net (Note 11)		94,133			87,764
Deferred income tax assets (Note 14)		5,840			5,334
Other assets		88,185			59,043
Total assets	$	3,686,568			2,023,838
Liabilities
Current liabilities:
Accrued salaries and employee benefits	$	38,775			26,243
Accounts payable		36,463			63,370
Current portion of long-term borrowings (Note 12)		34,257			27,361
Current portion of obligations under capital leases (Note 12)		23,032			13,263
Other current liabilities (Note 13)		164,688			100,282
Total current liabilities		297,215			230,519
Long-term borrowings, excluding current portion (Note 12)		1,428,251			174,859
Deferred income tax liabilities (Note 14)		228,727			48,074
Obligations under capital leases, excluding current portion (Note 12)		7,500			17,155
Other long-term liabilities		82,797			68,791
Total liabilities		2,044,490			539,398
Redeemable noncontrolling interest in consolidated subsidiary		39,652			39,505
Commitments and contingencies (Note 15)
Equity
Shareholders’ equity (Notes 17, 18, 19, and 20):
Common stock — $0.10 par value. Authorized 600,000 shares; 202,790 and 202,471 issued at 2013 and 2012, respectively; 187,717 and 187,031 outstanding at 2013 and 2012, respectively		20,279			20,247
Additional paid-in capital		165,841			141,793
Accumulated other comprehensive income, net		3,749			1,408
Treasury stock, at cost (15,073 and 15,440 shares at 2013 and 2012, respectively)		(326,996	)		(287,301	)
Retained earnings		1,718,204			1,549,063
Total shareholders’ equity		1,581,077			1,425,210
Noncontrolling interests in consolidated subsidiaries		21,349			19,725
Total equity		1,602,426			1,444,935
Total liabilities and equity	$	3,686,568			2,023,838

See accompanying Notes to Consolidated Financial Statements

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Consolidated Statements of Income

	Years Ended December 31,
(in thousands, except per share data)	2013			2012			2011
Total revenues	$	2,132,353			1,870,972			1,808,966
Cost of services		1,436,331			1,262,310			1,257,970
Selling, general and administrative expenses		295,555			249,360			227,251
Merger and acquisition expenses		14,220			1,650			1,289
Total operating expenses		1,746,106			1,513,320			1,486,510
Operating income		386,247			357,652			322,456
Nonoperating expenses, net		(1,108	)		(2,798	)		(5,905	)
Merger and acquisition expenses—bridge loan facility and bonds		(29,220	)		—			—
Income before income taxes and equity in income of equity investments		355,919			354,854			316,551
Income taxes (Note 14)		112,369			115,102			102,597
Income before equity in income of equity investments		243,550			239,752			213,954
Equity in income of equity investments, net of tax (Note 11)		13,047			10,171			8,708
Net income		256,597			249,923			222,662
Net income attributable to noncontrolling interests		(11,847	)		(5,643	)		(2,103	)
Net income attributable to Total System Services, Inc. (TSYS) common shareholders	$	244,750			244,280			220,559
Basic earnings per share (EPS) attributable to TSYS common shareholders (Note 25)	$	1.30			1.30			1.15
Diluted EPS attributable to TSYS common shareholders (Note 25)	$	1.29			1.29			1.15

See accompanying Notes to Consolidated Financial Statements

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Consolidated Statements of Comprehensive Income

	Years Ended December 31,
(in thousands)	2013			2012			2011
Net income	$	256,597			249,923			222,662
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(4,081	)		2,183			1,674
Postretirement healthcare plan adjustments		1,895			(1,666	)		1,056
Unrealized gain on available-for-sale securities		1,773			—			—
Other comprehensive income (loss)		(413	)		517			2,730
Comprehensive income		256,184			250,440			225,392
Comprehensive income attributable to noncontrolling interests		9,092			4,307			2,721
Comprehensive income attributable to TSYS common shareholders	$	247,092			246,133			222,671

See accompanying Notes to Consolidated Financial Statements

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Consolidated Statements of Cash Flows

	Years Ended December 31,
(in thousands)	2013			2012			2011
Cash flows from operating activities:
Net income	$	256,597			249,923			222,662
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		205,351			170,610			169,165
Deferred income tax expense		26,945			285			1,491
Share-based compensation		28,933			18,621			16,477
Dividends received from equity investments		8,595			7,524			6,835
Charges for transaction processing provisions		7,458			2,803			4,750
Amortization of debt issuance costs		7,269			298			160
Asset impairments		—			—			799
Provisions for fraud and other losses		11,912			—			—
Provisions for bad debt expenses and billing adjustments		2,000			1,054			1,552
(Gain) Loss on disposal of equipment, net		(79	)		324			(1,159	)
Amortization of bond discount		225			—			—
Loss on foreign currency		1,027			2,012			3,091
Changes in value of private equity investments		(966	)		(898	)		—
Excess tax expense (benefit) from share-based compensation		(3,528	)		(1,259	)		523
Equity in income of equity investments		(13,047	)		(10,171	)		(8,708	)
Changes in operating assets and liabilities:
Accounts payable		(52,042	)		37,206			(15,512	)
Accounts receivable		(8,667	)		2,855			(7,044	)
Prepaid expenses, other current assets and other long-term assets		(571	)		(2,945	)		23,099
Accrued salaries and employee benefits		(403	)		(7,083	)		4,492
Other current liabilities and other long-term liabilities		(24,611	)		(15,406	)		13,646
Net cash provided by operating activities		452,398			455,753			436,319
Cash flows from investing activities:
Cash used in acquisitions, net of cash acquired		(1,314,660	)		(188,698	)		(47,909	)
Additions to contract acquisition costs		(55,965	)		(34,384	)		(31,623	)
Additions to licensed computer software from vendors		(63,635	)		(33,001	)		(19,502	)
Purchases of property and equipment		(40,598	)		(31,395	)		(26,938	)
Additions to internally developed computer software		(33,600	)		(19,285	)		(17,882	)
Purchase of private equity investments		(1,378	)		(3,031	)		(1,573	)
Subsidiary repurchase of noncontrolling interests		—			—			(493	)
Proceeds from sale of trade name		—			—			4,500
Net cash used in investing activities		(1,509,836	)		(309,794	)		(141,420	)
Cash flows from financing activities:
Proceeds from long-term borrowings		1,395,661			150,000			—
Proceeds from exercise of stock options		40,691			9,672			8,065
Excess tax expense (benefit) from share-based compensation		3,528			1,259			(523	)
Subsidiary dividends paid to noncontrolling shareholders		(7,321	)		(2,797	)		(433	)
Repurchase of common stock		(103,857	)		(74,939	)		(121,271	)
Debt issuance costs		(13,573	)		(2,073	)		—
Dividends paid on common stock		(56,510	)		(94,035	)		(53,949	)
Principal payments on long-term borrowings and capital lease obligations		(166,805	)		(200,052	)		(28,892	)
Purchase of noncontrolling interest		—			—			(174,050	)
Net cash provided by (used in) financing activities		1,091,814			(212,965	)		(371,053	)
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents		(3,758	)		(1,719	)		(2,304	)
Net increase (decrease) in cash and cash equivalents		30,618			(68,725	)		(78,458	)
Cash and cash equivalents at beginning of period		247,612			316,337			394,795
Cash and cash equivalents at end of period	$	278,230			247,612			316,337
Supplemental cash flow information:
Interest paid	$	23,157			2,952			3,088
Income taxes paid, net	$	80,033			106,778			82,084

See accompanying Notes to Consolidated Financial Statements

35

Consolidated Statements of Changes in Equity

				TSYS Shareholders
	Redeemable Noncontrolling Interests			Common Stock				Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Retained Earnings			Noncontrolling Interests			Total Equity
(in thousands, except per share data)				Shares		Dollars
Balance as of December 31, 2010	$	146,000			201,326	$	20,133		119,722			(2,585	)		(115,449	)		1,219,303			16,681		$	1,257,805
Net income		(1,364	)		—		—		—			—			—			220,559			3,467			224,026
Other comprehensive income		—			—		—		—			2,112			—			—			618			2,730
Common stock issued from treasury shares for exercise of stock options (Note 18)		—			—		—		(3,450	)		—			11,515			—			—			8,065
Common stock issued for nonvested awards (Note 18)		—			534		53		(53	)		—			—			—			—			—
Common stock issued from treasury shares for nonvested awards (Note 18)		—			—		—		(172	)		—			172			—			—			—
Share-based compensation (Note 18)		—			—		—		16,513			—			—			—			—			16,513
Cash dividends declared ($0.31 per share)		—			—		—		—			—			—			(59,228	)		—			(59,228	)
Purchase of treasury shares (Note 19)		—			—		—		—			—			(121,272	)		—			—			(121,272	)
Adjustment to fair value of non-controlling interest in TMS		29,414			—		—		(6,828	)		—			—			—			—			(6,828	)
Redemption of redeemable noncontrolling interests		(174,050	)		—		—		—			—			—			—			—			—
Subsidiary dividends paid to noncontrolling interests		—			—		—		—			—			—			—			(448)			(448)
Subsidiary repurchase of noncontrolling interests		—			—		—		77			28			—			—			(598	)		(493	)
Tax benefits associated with share-based compensation		—			—		—		139			—			—			—			—			139
Balance as of December 31, 2011		—			201,860		20,186		125,948			(445	)		(225,034	)		1,380,634			19,720			1,321,009
Net income		1,505			—		—		—			—			—			244,280			4,138			248,418
Other comprehensive income												1,853									(1,336	)		517
Common stock issued from treasury shares for exercise of stock options (Note 18)		—			—		—		(2,386	)		—			12,377			—			—			9,991
Common stock issued for nonvested awards (Note 18)		—			611		61		(61	)		—			—			—			—			—
Common stock issued from treasury shares for nonvested awards (Note 18)		—			—		—		(628	)		—			628			—			—			—
Share-based compensation (Note 18)		—			—		—		18,623			—			—			—			—			18,623
Cash dividends declared ($0.40 per share)		—			—		—		—			—			—			(75,851	)		—			(75,851	)
Purchase of treasury shares (Note 19)		—			—		—		—			—			(75,272	)		—			—			(75,272	)
Subsidiary dividends paid to noncontrolling interests		—			—		—		—			—			—			—			(2,797	)		(2,797	)
Fair value of noncontrolling interest in CPAY		38,000			—		—		—			—			—			—			—			—
Tax benefits associated with share-based compensation		—			—		—		297			—			—			—			—			297
Balance as of December 31, 2012		39,505			202,471		20,247		141,793			1,408			(287,301	)		1,549,063			19,725			1,444,935
Net income		6,515			—		—		—			—			—			244,750			5,331			250,081
Other comprehensive income		—			—		—		—			2,341			—			—			(2,754	)		(413	)
Replacement share-based awards issued in connection with acquisition (Note 18)		—			—		—		(1,167	)		—			16,723			—			—			15,556
Common stock issued from treasury shares for exercise of stock options (Note 18)		—			—		—		(700	)		—			41,391			—			—			40,691
Common stock issued for nonvested awards (Note 18)		—			319		32		(32	)		—			—			—			—			—
Common stock issued from treasury shares for nonvested awards (Note 18)		—			—		—		(5,747	)		—			5,747			—			—			—
Share-based compensation (Note 18)		—			—		—		28,972			—			—			—			—			28,972
Common stock issued from treasury shares for dividend equivalents (Note 18)		—			—		—		36			—			301			161			—			498
Cash dividends declared ($0.40 per share)		—			—		—		—			—			—			(75,770	)		—			(75,770	)
Purchase of treasury shares (Note 19)		—			—		—		—			—			(103,857	)		—			—			(103,857	)
Subsidiary dividends paid to noncontrolling interests		(6,368	)		—		—		—			—			—			—			(953	)		(953	)
Tax shortfalls associated with share-based compensation		—			—		—		2,686			—			—			—			—			2,686
Balance as of December 31, 2013	$	39,652			202,790	$	20,279		165,841			3,749			(326,996	)		1,718,204			21,349		$	1,602,426

See accompanying Notes to Consolidated Financial Statements

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Notes to Consolidated Financial Statements

NOTE 1 Basis of Presentation and Summary of Significant Accounting Policies

BUSINESS:    Total System Services, Inc.’s (TSYS’ or the Company’s) revenues are derived from providing payment processing, merchant services and related payment services to financial and nonfinancial institutions, generally under long-term processing contracts. The Company also derives revenues by providing general purpose reloadable (GPR) prepaid debit cards and payroll cards and alternative financial services to underbanked consumers. The Company’s services are provided through the Company’s four operating segments: North America Services, International Services, Merchant Services and NetSpend.

Through the Company’s North America Services and International Services segments, TSYS processes information through its cardholder systems to financial institutions throughout the United States and internationally. The Company’s North America Services segment provides these services to clients in the United States, Canada, Mexico and the Caribbean. The Company’s International Services segment provides services to clients in Europe, India, Middle East, Africa, Asia Pacific and Brazil. The Company’s Merchant Services segment provides merchant services to merchant acquirers and merchants mainly in the United States. The Company’s NetSpend segment provides services to consumers in the United States.

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION:    The accompanying consolidated financial statements, which are prepared in accordance with generally accepted accounting principles (GAAP) include the accounts of TSYS and its wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities as defined in accordance with the provisions of Accounting Standards Codification (ASC) 810, “Consolidation,” and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810.

RISKS AND UNCERTAINTIES AND USE OF ESTIMATES:    Factors that could affect the

Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, lower than anticipated growth from existing clients, an inability to attract new clients and grow internationally, loss of a major customer or other significant client, loss of a major supplier, an inability to grow through acquisitions or successfully integrate acquisitions, an inability to control expenses, technology changes, the impact of the application of and/or changes in accounting principles, financial services consolidation, changes in regulatory requirements, a decline in the use of cards as a payment mechanism, disruption of the Company’s international operations, breach of the Company’s security systems, a decline in the financial stability of the Company’s clients and uncertain economic conditions. Negative developments in these or other risk factors could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

The Company has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates and assumptions are developed based upon all information available. Actual results could differ from estimated amounts.

ACQUISITIONS — PURCHASE PRICE ALLOCATION:    TSYS’ purchase price allocation methodology requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities. TSYS estimates the fair value of assets and liabilities based upon appraised market values, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses. Management determines the fair value of fixed assets and identifiable intangible assets such as developed technology or customer relationships, and any other significant assets or liabilities. TSYS adjusts the purchase price allocation, as necessary, up to one year after the acquisition closing date as TSYS obtains more information regarding asset valuations and liabilities assumed. Unanticipated events or circumstances may occur which could affect the accuracy of the Company’s fair value estimates, including

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assumptions regarding industry economic factors and business strategies, and result in an impairment or a new allocation of purchase price.

Given its history of acquisitions, TSYS may allocate part of the purchase price of future acquisitions to contingent consideration as required by GAAP for business combinations. The fair value calculation of contingent consideration will involve a number of assumptions that are subjective in nature and which may differ significantly from actual results. TSYS may experience volatility in its earnings to some degree in future reporting periods as a result of these fair value measurements.

CASH AND CASH EQUIVALENTS:    Cash on hand and investments with a maturity of three months or less when purchased are considered to be cash equivalents.

ACCOUNTS RECEIVABLE:    Accounts receivable balances are stated net of allowances for doubtful accounts and billing adjustments.

TSYS records an allowance for doubtful accounts when it is probable that the accounts receivable balance will not be collected. When estimating the allowance for doubtful accounts, the Company takes into consideration such factors as its day-to-day knowledge of the financial position of specific clients, the industry and size of its clients, the overall composition of its accounts receivable aging, prior history with specific customers of accounts receivable write-offs and prior experience of allowances in proportion to the overall receivable balance. This analysis includes an ongoing and continuous communication with its largest clients and those clients with past due balances. A financial decline of any one of the Company’s large clients could have a material adverse effect on collectability of receivables and thus the adequacy of the allowance for doubtful accounts.

Increases in the allowance for doubtful accounts are recorded as charges to bad debt expense and are reflected in selling, general and administrative expenses in the Company’s Consolidated Statements of Income. Write-offs of uncollectible accounts are charged against the allowance for doubtful accounts.

TSYS records an allowance for billing adjustments for actual and potential billing discrepancies. When estimating the allowance for billing adjustments, the Company considers its overall history of billing adjustments, as well as its history with specific clients and known disputes. Increases in the allowance for

billing adjustments are recorded as a reduction of revenues in the Company’s Consolidated Statements of Income and actual adjustments to invoices are charged against the allowance for billing adjustments.

UP-FRONT DISTRIBUTOR PAYMENTS:    The Company makes up-front contractual payments to third-party distribution partners. The Company assesses each up-front payment to determine whether it meets the criteria of an asset as defined by U.S. GAAP. If these criteria are met, the Company capitalizes the up-front payment and recognizes the capitalized amount as expense ratably over the benefit period, which is generally the contract period. If the contract requires the distributor to perform specific acts (i.e. achieve a sales goal) and no other conditions exist for the distributor to earn

or retain the up-front payment, then the Company capitalizes the payment and recognizes it as an expense when the performance conditions have been met. Up-front distributor payments are classified on the Consolidated Balance Sheet as other non-current assets and recorded as a cost of services in the Consolidated Statements of Income.

PROPERTY AND EQUIPMENT:    Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over estimated useful lives of 5-40 years, computer and other equipment over estimated useful lives of 2-5 years, and furniture and other equipment over estimated useful lives of 3-15 years. The Company evaluates impairment losses on long-lived assets used in operations in accordance with the provisions of ASC 360, “Property Plant and Equipment.”

All ordinary repairs and maintenance costs are expensed as incurred. Maintenance costs that extend the asset life are capitalized and amortized over the remaining estimated life of the asset.

LICENSED COMPUTER SOFTWARE:    The Company licenses software that is used in providing services to clients. Licensed software is obtained through perpetual licenses and site licenses and through agreements based on processing capacity (called “MIPS agreements”). Perpetual and site licenses are amortized using the straight-line method over their estimated useful lives which range from three to ten years. Software licensed under MIPS agreements is amortized using a units-of-production basis over the estimated useful life of the software,

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generally not to exceed ten years. At each balance sheet date, the Company evaluates impairment losses on long-lived assets used in operations in accordance with ASC 360.

ACQUISITION TECHNOLOGY INTANGIBLES:     These identifiable intangible assets are software technology assets resulting from acquisitions. These assets are amortized using the straight-line method over periods not exceeding their estimated useful lives, which range from five to nine years. The provisions of ASC 350, “Intangibles — Goodwill and Other,” require that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment in accordance with ASC 360. Acquisition technology intangibles’ net book values are included in computer software, net in the accompanying balance sheets. Amortization expenses are charged to cost of services in the Company’s Consolidated Statements of Income.

SOFTWARE DEVELOPMENT COSTS:    In accordance with the provisions of ASC 985, “Software,” software development costs are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. At each balance sheet date, the Company evaluates the unamortized capitalized costs of software development as compared to the net realizable value of the software product which is determined by future undiscounted net cash flows. The amount by which the unamortized software development costs exceed the net realizable value is written off in the period that such determination is made. Software development costs are amortized using the greater of (1) the straight-line method over its estimated useful life, which ranges from three to ten years or (2) the ratio of current revenues to total anticipated revenue over its useful life.

The Company also develops software that is used internally. These software development costs are capitalized based upon the provisions of ASC 350. Internal-use software development costs are capitalized once: (1) the preliminary project stage is completed, (2) management authorizes and commits to funding a computer software project, and (3) it is

probable that the project will be completed and the software will be used to perform the function intended. Costs incurred prior to meeting the qualifications are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. Internal-use software development costs are amortized using the straight-line method over its estimated useful life which ranges from three to ten years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of the planned project becoming doubtful or due to technological obsolescence of the planned software product.

CONTRACT ACQUISITION COSTS:    The Company capitalizes contract acquisition costs related to signing or renewing long-term contracts. The Company capitalizes internal conversion costs in accordance with the provisions of Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition” and ASC 605, “Revenue Recognition.” The capitalization of costs related to cash payments for rights to provide processing services is capitalized in accordance with the provisions of ASC 605. All costs incurred prior to a signed agreement are expensed as incurred.

Contract acquisition costs are amortized using the straight-line method over the expected customer relationship (contract term) beginning when the client’s cardholder accounts are converted and producing revenues. The amortization of contract acquisition costs associated with cash payments for client incentives is included as a reduction of revenues in the Company’s Consolidated Statements of Income. The amortization of contract acquisition costs associated with conversion activity is recorded as cost of services in the Company’s Consolidated Statements of Income.

The Company evaluates the carrying value of contract acquisition costs associated with each customer for impairment on the basis of whether these costs are fully recoverable from either contractual minimum fees (contractual costs) or from expected undiscounted net operating cash flows of the related contract (cash incentives paid). The determination of expected undiscounted net operating cash flows requires management to make estimates. These costs may become impaired with the loss of a contract, the financial decline of a client, termination of conversion efforts after a contract is signed, diminished prospects for current clients or if the Company’s actual results differ from its estimates of future cash flows. The amount of the impairment is written off in the period that such a determination is made.

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EQUITY INVESTMENTS:    TSYS’ 49% investment in Total System Services de México, S.A. de C.V. (TSYS de México), an electronic payment processing support operation located in Toluca, Mexico, is accounted for using the equity method of accounting, as is TSYS’ 44.56% investment in China UnionPay Data Co., Ltd. (CUP Data) headquartered in Shanghai, China. TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments.

GOODWILL:    Goodwill results from the excess of cost over the fair value of net assets of businesses acquired.

Goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually in accordance with the provisions of ASC 350. ASC 350 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values.

The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with the provisions of ASC 323, “Investments — Equity Method and Joint Ventures,” shall not be amortized. However, equity method goodwill shall not be reviewed for impairment in accordance with ASC 350, but instead should continue to be reviewed for impairment in accordance with paragraph 19(h) of ASC 323. Equity method goodwill, which is not reported as goodwill in the Company’s Consolidated Balance Sheet, but is reported as a component of the equity investment, was $52.7 million as of December 31, 2013.

OTHER INTANGIBLE ASSETS:    Identifiable intangible assets relate primarily to customer relationships, databases, channel relationships, covenants-not-to-compete, trade names and trade associations resulting from acquisitions. These identifiable intangible assets are amortized using the straight-line method over periods not exceeding the estimated useful lives, which range from three to ten years. ASC 350 requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 360. Amortization expenses are charged to selling, general and administrative expenses in the Company’s Consolidated Statements of Income.

FAIR VALUES OF FINANCIAL INSTRUMENTS:    The Company uses financial instruments in the normal course of its business. The carrying values of cash equivalents, accounts receivable, accounts payable, accrued salaries and employee benefits, and other current liabilities approximate their fair value due to the short-term maturities of these assets and liabilities. The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value.

Investments in equity investments are accounted for using the equity method of accounting and pertain to privately held companies for which fair value is not readily available. The Company believes the fair values of its investments in equity investments exceed their respective carrying values.

IMPAIRMENT OF LONG-LIVED ASSETS:    In accordance with ASC 360, the Company reviews long-lived assets, such as property and equipment and intangibles subject to amortization, including contract acquisition costs and certain computer software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If upon a triggering event the Company determines that the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.

TRANSACTION PROCESSING PROVISIONS:    The Company has recorded an accrual for contract contingencies (performance penalties) and processing errors. A significant number of the Company’s contracts with large clients contain service level agreements which can result in TSYS incurring performance penalties if contractually required service levels are not met. When providing for these accruals, the Company takes into consideration such factors as the prior history of performance penalties and processing errors

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incurred, actual contractual penalties inherent in the Company’s contracts, progress towards milestones and known processing errors not covered by insurance.

These accruals are included in other current liabilities in the accompanying Consolidated Balance Sheets. Increases and decreases in transaction processing provisions are charged to cost of services in the Company’s Consolidated Statements of Income, and payments or credits for performance penalties and processing errors are charged against the accrual.

REDEEMABLE NONCONTROLLING INTEREST:    In connection with the acquisition of CPAY, the Company is party to call and put arrangements with respect to the membership units that represent the remaining noncontrolling interest of CPAY. The call arrangement is exercisable by TSYS and the put arrangement is exercisable by the seller. The put arrangement is outside the control of the Company by requiring the Company to purchase the seller’s entire equity interest in CPAY at a put price at fair market value. The put arrangement is recorded on the balance sheet and is classified as redeemable noncontrolling interest outside of permanent equity.

NONCONTROLLING INTEREST:    Noncontrolling interest in earnings of subsidiaries represents the minority shareholders’ share of the net income or loss of GP Network Corporation (GP Net), TSYS Managed Services EMEA Ltd. (TSYS Managed Services) and CPAY. The noncontrolling interest in the Consolidated Balance Sheet reflects the original investment by these shareholders in GP Net and TSYS Managed Services, their proportional share of the earnings or losses and their proportional share of net gains or losses resulting from the currency translation of assets and liabilities of GP Net and TSYS Managed Services. TSYS has adopted the accounting policy to recognize gains or losses on equity transactions of a subsidiary as a capital transaction.

CARDHOLDERS’ RESERVE:    The Company is exposed to losses due to cardholder fraud, payment defaults and other forms of cardholder activity as well as losses due to non-performance of third parties who receive cardholder funds for transmittal to the Issuing Banks (banks that issue MasterCard International or Visa USA, Inc. branded cards to customers). The Company establishes a reserve for the losses it estimates will arise from processing customer transactions, debit card overdrafts, chargebacks for unauthorized card use and merchant-related chargebacks due to non-delivery of goods

and services. These reserves are established based upon historical loss and recovery rates and cardholder activity for which specific losses can be identified. The cardholders’ reserve was approximately $5.8 million as of December 31, 2013. The Company regularly updates its reserve estimate as new facts become known and events occur that may impact the settlement or recovery of losses.

PROVISION FOR MERCHANT LOSSES:    The Company has potential liability for losses resulting from disputes between a cardholder and a merchant

that arise as a result of, among other things, the cardholder’s dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. If the merchant is unable to fund the refund, TSYS must do so. TSYS also bears the risk of reject losses arising from the fact that TSYS collects fees from its merchants on the first day after the monthly billing period. If the merchant has gone out of business during such period, TSYS may be unable to collect such fees. TSYS maintains cash deposits or requires the pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. Most chargeback and reject losses are charged to cost of services as they are incurred. However, the Company also maintains a provision against losses, including major fraud losses, which are both less predictable and involve larger amounts. The loss provision was established using historical loss rates, applied to recent bankcard processing volume. As of December 31, 2013, the Company had a loss provision in the amount of $991,000.

FOREIGN CURRENCY TRANSLATION:    The Company maintains several different foreign operations whose functional currency is their local currency. Foreign currency financial statements of the Company’s Mexican and Chinese equity investments, the Company’s wholly owned subsidiaries and the Company’s majority owned subsidiaries, as well as the Company’s division and branches in the United Kingdom and China, are translated into U.S. dollars at current exchange rates, except for revenues, costs and expenses, and net income which are translated at the average exchange rates for each reporting

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period. Net gains or losses resulting from the currency translation of assets and liabilities of the Company’s foreign operations, net of tax when applicable, are accumulated in a separate section of shareholders’ equity titled accumulated other comprehensive income (loss). Gains and losses on transactions denominated in currencies other than the functional currencies are included in determining net income for the period in which exchange rates change.

TREASURY STOCK:    The Company uses the cost method when it purchases its own common stock as treasury shares or issues treasury stock upon option exercises and displays treasury stock as a reduction of shareholders’ equity.

REVENUE RECOGNITION:    The Company recognizes revenues in accordance with the provisions of SAB No. 104. SAB No. 104 sets forth guidance as to when revenue is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience.

The Company’s North America and International Services revenues are derived from long-term processing contracts with financial and nonfinancial institutions and are generally recognized as the services are performed. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements mailed, cards embossed and mailed and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual revenue minimums, penalties for early termination, and service level agreements which may impact contractual fees if certain service levels are not achieved.

Revenue is recognized as the services are performed, primarily on a per unit basis. Processing contracts generally range from three to ten years in length. When providing payment processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, web-based services, and other payment processing-related services. Revenue for

these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract.

The Company’s Merchant Services revenues are derived from long-term processing contracts with large financial institutions, other merchant acquirers and merchant organizations which generally range from three to eight years and provide for penalties for early termination. Merchant services revenue is generated primarily from processing all payment forms including credit, debit, electronic benefits transfer and check truncation for merchants of all sizes across a wide array of retail market segments. The products and services offered include authorization and capture of electronic transactions, clearing and settlement of electronic transactions, information reporting services related to electronic transactions, merchant billing services, and point-of-sale terminal services. Revenue is recognized for merchant services as those services are performed, primarily on a per unit basis. When providing merchant processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, terminal services, and other merchant processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract. Revenues on point-of-sale terminal equipment are recognized upon the transfer of ownership and shipment of product.

When a sale involves multiple deliverables, revenue recognition is affected by the determination of the number of deliverables in an arrangement, whether those deliverables may be separated into separate units of accounting, and the valuation of each unit of accounting which affects the amount of revenue allocated to each unit. Pursuant to ASC 605, the Company uses vendor-specific objective evidence of selling price (VSOE) when it exists to determine the amount of revenue to allocate to each unit of accounting. The Company establishes VSOE of selling price using the price charged when the same service is sold separately. In certain situations, the Company does not have sufficient VSOE. In these situations, TSYS considered whether sufficient third party evidence (TPE) of selling price existed for the Company’s services. However, the Company typically is not able to determine TPE and has not used this measure of selling price due to the unique and proprietary nature of some of its services and the

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inability to reliably verify relevant standalone competitor prices. When there is insufficient evidence of VSOE and TPE, the Company has made its best estimate of the standalone selling price (ESP) of that service for purposes of allocating revenue to each unit of accounting. When determining ESP, TSYS uses limited standalone sales data that do not meet the Company’s criteria to establish VSOE, management pricing strategies, residual selling price data when VSOE exists for a group of elements, and margin objectives. Consideration is also given to geographies in which the services are sold or delivered, customer classifications, and market conditions including competitor pricing strategies and benchmarking studies. Revenue is recognized when the revenue recognition criteria for each unit of accounting have been met.

As business and service offerings change in the future, the determination of the number of deliverables in an arrangement and related units of accounting and the future pricing practices may result in changes in the estimates of VSOE and ESP, which may change the ratio of fees allocated to each service or unit of accounting in a given customer arrangement. There were no material changes or impact to revenue in revenue recognition in the year ended December 31, 2013 due to any changes in the determination of the number of deliverables in an arrangement, units of accounting, or estimates of VSOE or ESP.

In many situations, the Company enters into arrangements with customers to provide conversion or implementation services in addition to processing services where the conversion or implementation services do not have standalone value. In these situations, the deliverables do not meet the criteria of ASC 605-25 for separation and the deliverables are combined as a single unit of accounting for revenue recognition. For these arrangements, conversion or implementation services that do not have standalone value, are recognized over the expected customer relationship (contract term) contract term as the related processing services are performed.

The Company’s other services generally have standalone value and constitute separate units of accounting for revenue recognition purposes. However, customer arrangements entered into prior to January 1, 2011 often included services for which sufficient objective and reliable evidence of fair value did not exist. In certain situations, sufficient objective and reliable evidence of fair value did not exist for multiple undelivered services, and the deliverables

were combined and recognized as a single unit of accounting based on the proportional performance for the combined unit. Beginning on January 1, 2011, services in new or materially modified arrangements of this nature are now divided into separate units of accounting and revenue is allocated to each unit based on the relative selling price method. As the services in these arrangements are generally delivered over the same term with consistent patterns of performance, there is no change in the timing or pattern of revenue recognition upon adoption of Accounting Standard Update (ASU) 2009-13, “Multiple-Deliverable Revenue Arrangements,” an update to ASC Topic 605, “Revenue Recognition,” and formerly known as EITF 08-1, “Revenue Arrangements with Multiple Deliverables”, nor does it have a material effect on revenue recognition for these arrangements in future periods.

The Company’s multiple element arrangements may include one or more elements that are subject to other topics including software revenue recognition and leasing guidance. The consideration for these multiple element arrangements is allocated to each group of deliverables – those subject to ASC 605-25 and those subject to other topics based on the revised guidance in ASU 2009-13. Arrangement revenue for each group of deliverables is then further separated, allocated, and recognized based on applicable guidance.

The Company’s NetSpend revenues principally consist of a portion of the service fees and interchange revenues received by the Issuing Banks in connection with the programs NetSpend manages. Revenue is recognized when there is persuasive evidence of an arrangement, the relevant services have been rendered, the price is fixed or determinable and collectability is reasonably assured.

Cardholders are charged fees in connection with NetSpend’s products and services as follows:

• Transactions — Cardholders are typically charged a fee for each PIN and signature-based purchase transaction made using their GPR cards, unless the cardholder is on a monthly or annual service plan, in which case the cardholder is instead charged a monthly or annual subscription fee, as applicable. Cardholders are also charged fees for ATM withdrawals and other transactions conducted at ATMs.

• Customer Service and Maintenance — Cardholders are typically charged fees for balance inquiries made through NetSpend’s call

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centers. Cardholders are also charged a monthly maintenance fee after a specified period of inactivity.

• Additional Products and Services — Cardholders are charged fees associated with additional products and services offered in connection with certain of the GPR cards, including the use of overdraft features, a variety of bill payment options, custom card designs and card-to-card transfers of funds initiated through NetSpend’s call centers.

• Other — Cardholders are charged fees in connection with the acquisition and reloading of the GPR cards at retailers and the Company receives a portion of these amounts in some cases.

Revenue resulting from the service fees charged to the cardholders described above is recognized when the fees are charged because the earnings process is substantially complete, except for revenue resulting from the initial activation of cards and annual subscription fees. Revenue resulting from the initial activation of cards is recognized ratably, net of commissions paid to the distributors, over the average account life, which is approximately one year for GPR cards. Revenue resulting from annual subscription fees is recognized ratably over the annual period to which the fees relate.

NetSpend earns revenues from a portion of the interchange fees remitted by merchants when cardholders make purchases at their locations using their GPR cards. Subject to applicable law, interchange fees are fixed by the Networks. Interchange revenues are recognized net of sponsorship, licensing and processing fees charged by the Networks for services they provide in processing purchase transactions routed through them. Interchange revenue is recognized during the period that the purchase transactions occur. Also included in interchange revenue are fees earned from branding agreements with the Networks.

In regards to taxes assessed by a governmental authority imposed directly on a revenue producing transaction, the Company reports its revenues on a net basis.

REIMBURSABLE ITEMS:    Reimbursable items consist of out-of-pocket expenses which are reimbursed by the Company’s clients. These expenses consist primarily of postage, access fees and third party software. The Company accounts for

reimbursable items in accordance with the provisions of ASC 605.

SHARE-BASED COMPENSATION: ASC 718, “Compensation — Stock Compensation,” establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. ASC 718 requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award.

ASC 718 is effective for all awards granted on or after January 1, 2006, and to awards modified, repurchased or cancelled after that date. ASC 718 requires the Company to recognize compensation costs for the nonvested portion of outstanding share-based compensation granted in the form of stock options based on the grant-date fair value of those awards calculated under the provisions of ASC 718, for pro forma disclosures. Share-based compensation expenses include the impact of expensing the fair value of stock options, as well as expenses associated with nonvested shares. TSYS adopted the provisions of ASC 718 effective January 1, 2006 using the modified-prospective-transition method.

ASC 718 requires companies to estimate forfeitures when recognizing compensation cost. The estimate of forfeitures will be adjusted by the Company as actual forfeitures differ from its estimates, resulting in compensation cost only for those awards that actually vest. The effect of the change in estimated forfeitures is recognized as compensation costs in the period the change in estimate occurred. In estimating its forfeiture rate, the Company stratified its data based upon historical experience to determine separate forfeiture rates for the different award grants. The Company currently estimates a forfeiture rate for existing stock option grants to TSYS non-executive employees, and a forfeiture rate for other TSYS share-based awards. Currently, TSYS estimates a forfeiture rate in the range of 0% to 10%.

The Company has issued vested awards to directors and nonvested awards to certain employees. The market value of the common stock at the date of

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issuance is recognized as compensation expense immediately for vested awards and over the vesting period of the nonvested awards. For nonvested award grants that have pro rata vesting, the Company recognizes compensation expense using the straight-line method over the vesting period of the award.

LEASES:    The Company is obligated under noncancelable leases for computer equipment and facilities. As these leases expire, they will be evaluated and renewed or replaced by similar leases based on need. A lease is an agreement conveying the right to use property, plant, or equipment (land and/or depreciable assets) usually for a stated period of time. For purposes of applying the accounting and reporting standards, leases are classified from the standpoint of the lessee as capital or operating leases.

Rental payments on operating leases are charged to expense over the lease term. If rental payments are not made on a straight-line basis, rental expense nevertheless shall be recognized on a straight-line basis unless another systematic and rational basis is more representative of the time pattern in which use benefit is derived from the leased property, in which case that basis shall be used.

Certain of the Company’s operating leases are for office space. The Company will make various alterations (leasehold improvements) to the office space and capitalize these costs as part of property and equipment. Leasehold improvements are amortized on a straight-line basis over the useful life of the improvement or the term of the lease, whichever is shorter.

ADVERTISING:    Advertising costs, consisting mainly of advertising in trade publications, are expensed as incurred or the first time the advertising takes place except for direct-response advertising and television advertising production costs. Direct-response advertising consists of commission paid to affiliate marketers for the new funded customer accounts generated by them. Direct-response advertising costs are capitalized and amortized over the average life of the new accounts, which is approximately one year. Television advertising production costs consist of the costs of developing and filming television ads. Television advertising production costs are capitalized when the production services are received and expensed in the period when the advertising first takes place. Advertising expense for 2013, 2012 and 2011 was $1.3 million, $1.0 million and $813,000, respectively.

INCOME TAXES:    Income taxes reflected in TSYS’ consolidated financial statements are computed based on the taxable income of TSYS and its affiliated subsidiaries. A consolidated U.S. federal income tax return is filed for TSYS and its majority owned U.S. subsidiaries. Additionally, income tax returns are also filed in states where TSYS and its subsidiaries have filing obligations and in foreign jurisdictions where TSYS has a foreign affiliate.

The Company accounts for income taxes in accordance with the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Reserves against the carrying value of a deferred tax asset are established when necessary to reflect the decreased likelihood of realization of a deferred asset in the future. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Income tax provisions require the use of management judgments, which are subject to challenge by various taxing authorities. Contingency reserves are periodically established where the amount of the contingency can be reasonably determined and is likely to occur. Reductions in contingency reserves are recognized when tax disputes are settled or examination periods lapse.

Significant estimates used in accounting for income taxes relate to the determination of taxable income, the determination of temporary differences between book and tax basis, as well as estimates on the realizability of tax credits and net operating losses.

TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the Consolidated Statements of Income.

EARNINGS PER SHARE:    The guidance under ASC 260, “Earnings Per Share,” holds that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are “participating securities” as defined in ASC 260, and therefore should be included in EPS using the two-class method.

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The two-class method is an earnings allocation method for computing EPS when an entity’s capital structure includes two or more classes of common stock or common stock and participating securities. It determines EPS based on dividends declared on common stock and participating securities and participation rights of participating securities in any undistributed earnings.

Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised. Diluted EPS is calculated by dividing net income by weighted average common and common equivalent shares outstanding. Common equivalent shares are calculated using the treasury stock method.

RECLASSIFICATIONS:    Certain reclassifications have been made to the 2012 and 2011 financial statements to conform to the presentation adopted in 2013.

NOTE 2 Fair Value Measurement

ASC 820, “Fair Value Measurements and Disclosure,” requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant level of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows:

Level 1 — Quoted prices for identical assets and liabilities in active markets.

Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Unobservable inputs for the asset or liability.

Goodwill is assessed annually for impairment in the second quarter of each year using fair value measurement techniques. Specifically, goodwill impairment is determined using a two-step test. The first step of the goodwill impairment test is used to identify potential impairment by comparing the fair

value of a reporting unit (RU) with its book value, including goodwill. If the fair value of the RU exceeds its book value, goodwill is considered not impaired and the second step of the impairment test is unnecessary. If the book value of the RU exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the RU’s goodwill with the book value of that goodwill. If the book value of the RU’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The fair value of the RU is allocated to all of the assets and liabilities of that unit as if the RU had been acquired in a business combination and the fair value of the RU was the purchase price paid to acquire the RU.

The estimate of fair value of the Company’s RUs is determined using various valuation techniques, including using an equally weighted combination of the market approach and the income approach. The market approach, which contains Level 2 inputs, utilizes readily available market valuation multiples to estimate fair value. The income approach is a valuation technique that utilizes the discounted cash flow (DCF) method, which includes Level 3 inputs. Under the DCF method, the fair value of the RU reflects the present value of the projected earnings that will be generated by each RU after taking into account the revenues and expenses associated with the asset, the relative risk that the cash flows will occur, the contribution of other assets, and an appropriate discount rate to reflect the value of the invested capital. Cash flows are estimated for future periods based upon historical data and projections by management.

As of December 31, 2013, the Company had recorded goodwill in the amount of $1.5 billion. The Company performed its annual impairment test of its goodwill balances as of May 31, 2013, and this test did not indicate any impairment. The fair value of the RUs substantially exceeds the carrying value. Refer to Note 6 for more information regarding goodwill.

The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value.

NOTE 3 Relationships with Affiliated Companies

The Company provides electronic payment processing and other services to the Company’s

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equity investments, TSYS de México and CUP Data.

The foregoing related party services are performed under contracts that are similar to its contracts with unrelated third party customers. The Company believes the terms and conditions of transactions between the Company and these related parties are comparable to those which could have been obtained in transactions with unaffiliated parties.

Through its related party transactions, TSYS generates accounts receivable and liability accounts with TSYS de México and CUP Data. The Company had an accounts receivable balance of $7,400 and $7,500 associated with related parties as of December 31, 2013 and 2012, respectively. The Company had an accounts payable balance of $12,000 and $77,000 with related parties as of December 31, 2013 and 2012, respectively.

The table below details revenues derived from affiliated companies for the years ended December 31, 2013, 2012 and 2011:

(in thousands)	2013		2012		2011
Total revenues:
CUP Data	$	229		172		136
TSYS de México		68		72		62
Total revenues	$	297		244		198

The Company and TSYS de México are parties to an agreement where TSYS de México provides processing support to the Company. Processing support fees paid to TSYS de México were $148,000, $186,000 and $168,000 for the years ended December 31, 2013, 2012 and 2011, respectively.

NOTE 4 Cash and Cash Equivalents

Cash and cash equivalent balances at December 31 are summarized as follows:

(in thousands)	2013		2012
Cash and cash equivalents in domestic accounts	$	192,468		152,373
Cash and cash equivalents in foreign accounts		85,762		95,239
Total	$	278,230		247,612

The Company maintains operating accounts outside the United States denominated in currencies other than the U.S. dollar. All amounts in domestic accounts are denominated in U.S. dollars.

As of December 31, 2013 and 2012, the Company had $5.0 million and $2.5 million, respectively, of cash and cash equivalents in Money Market accounts that had an original maturity date of 90 days or less.

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NOTE 5 Prepaid Expenses and Other Current Assets

Significant components of prepaid expenses and other current assets as of December 31 are summarized as follows:

(in thousands)	2013		2012
Prepaid expenses	$	42,341		24,615
Supplies inventory		12,927		8,881
Other		41,427		36,710
Total	$	96,695		70,206

NOTE 6 Goodwill

In 2013, the Company allocated $1.0 billion to goodwill due to the acquisition of NetSpend. During 2012, the Company allocated $162.1 million to goodwill due to the acquisitions of ProPay and CPAY.

The gross amount and accumulated impairment losses of goodwill as of December 31, 2013 and 2012 is as follows:

	2013
(in thousands)	North America Services		International Services		Merchant Services			NetSpend		Consolidated
Gross amount	$	70,796		34,201		415,973			1,024,434	$	1,545,404
Accumulated impairment losses		—		—		(2,225	)		—		(2,225	)
Goodwill, net	$	70,796		34,201		413,748			1,024,434	$	1,543,179

	2012
(in thousands)	North America Services		International Services		Merchant Services			NetSpend		Consolidated
Gross amount	$	70,796		33,944		415,829			—	$	520,569
Accumulated impairment losses		—		—		(2,225	)		—		(2,225	)
Goodwill, net	$	70,796		33,944		413,604			—	$	518,344

The changes in the carrying amount of goodwill as of December 31, 2013 and 2012 are as follows:

(in thousands)	North America Services		International Services		Merchant Services		NetSpend		Consolidated
Balance as of December 31, 2011	$	70,796		33,188		251,514		—	$	355,498
CPAY purchase price allocation		—		—		68,570		—		68,570
ProPay purchase price allocation		—		—		93,520		—		93,520
Currency translation adjustments		—		756		—		—		756
Balance as of December 31, 2012		70,796		33,944		413,604		—		518,344
NetSpend purchase price allocation		—		—		—		1,024,434		1,024,434
ProPay purchase price allocation		—		—		144		—		144
Currency translation adjustments		—		257		—		—		257
Balance as of December 31, 2013	$	70,796		34,201		413,748		1,024,434	$	1,543,179

Refer to Note 23 for more information on acquisitions.

NOTE 7 Other Intangible Assets, net

In 2013, TSYS allocated $401.6 million to other intangible assets due to the acquisition of NetSpend. In 2012, TSYS allocated $76.6 million to other intangible assets due to the acquisitions of ProPay and CPAY. Refer to Note 23 for more information on acquisitions.

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Significant components of other intangible assets as of December 31 are summarized as follows:

	2013
(in thousands)	Gross		Accumulated Amortization			Net
Channel relationships	$	318,600		(20,261	)	$	298,339
Customer relationships		167,871		(69,114	)		98,757
Trade name		46,561		(6,527	)		40,034
Database		28,000		(2,800	)		25,200
Covenants-not-to-compete		14,940		(2,887	)		12,053
Trade association		10,000		(3,750	)		6,250
Favorable lease		875		(89	)		786
Total	$	586,847		(105,428	)	$	481,419

	2012
(in thousands)	Gross		Accumulated Amortization			Net
Customer relationships	$	167,641		(49,822	)	$	117,819
Trade association		10,000		(2,750	)		7,250
Trade name		2,537		(1,504	)		1,033
Channel relationships		1,600		(266	)		1,334
Covenants-not-to-compete		3,440		(822	)		2,618
Total	$	185,218		(55,164	)	$	130,054

Amortization related to other intangible assets, which is recorded in selling, general and administrative expenses, was $50.0 million, $16.6 million and $13.2 million for 2013, 2012 and 2011, respectively.

The weighted average useful life for each component of other intangible assets, and in total, as of December 31, 2013 is as follows:

	Weighted Average Amortization Period (Yrs)
Customer relationships		8.2
Trade association		10.0
Trade name		4.9
Channel relationships		8.0
Database		5.0
Favorable Lease		4.9
Covenants-not-to-compete		5.3
Total		7.6

Estimated future amortization expense of other intangible assets as of December 31, 2013 for the next five years is:

(in thousands)
2014	$	77,218
2015		75,770
2016		75,213
2017		74,822
2018		60,166

NOTE 8 Computer Software, net

Computer software as of December 31 is summarized as follows:

(in thousands)	2013		2012
Licensed computer software	$	417,139		461,217
Software development costs		338,490		303,668
Acquisition technology intangibles		168,336		89,371
Total computer software		923,965		854,256
Less accumulated amortization:
Licensed computer software		224,915		336,521
Software development costs		254,423		232,113
Acquisition technology intangibles		74,854		58,705
Total accumulated amortization		554,192		627,339
Computer software, net	$	369,773		226,917

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The Company allocated approximately $78.7 million to acquisition technology intangibles during 2013 due to the acquisition of NetSpend. Refer to Note 23 for more information on this acquisition.

Amortization expense related to licensed computer software costs was $36.9 million, $37.4 million and $37.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense includes amounts for computer software acquired under capital lease. Amortization of software development costs was $21.6 million, $23.3 million and $24.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense related to acquisition technology intangibles was $15.9 million, $9.7 million and $10.3 million for the years ended December 31, 2013, 2012 and 2011, respectively.

The weighted average useful life for each component of computer software, and in total, as of December 31, 2013, is as follows:

	Weighted Average Amortization Period (Yrs)
Licensed computer software		5.7
Software development costs		5.8
Acquisition technology intangibles		6.8
Total		5.9

Estimated future amortization expense of licensed computer software, software development costs and acquisition technology intangibles as of December 31, 2013 for the next five years is:

(in thousands)	Licensed Computer Software		Software Development Costs		Acquisition Technology Intangibles
2014	$	48,293		26,396		19,715
2015		38,847		20,532		16,670
2016		27,964		15,925		15,202
2017		20,312		11,198		13,718
2018		12,805		7,994		11,243

NOTE 9 Property and Equipment, net

Property and equipment balances as of December 31 are as follows:

(in thousands)	2013		2012
Computer and other equipment	$	274,987		247,506
Buildings and improvements		242,132		232,141
Furniture and other equipment		131,036		125,100
Land		17,021		16,920
Other		988		2,955
Total property and equipment		666,164		624,622
Less accumulated depreciation and amortization		400,948		364,233
Property and equipment, net	$	265,216		260,389

Depreciation and amortization expense related to property and equipment was $48.2 million, $46.3 million and $49.3 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Note 10 Contract Acquisition Costs, net

Significant components of contract acquisition costs as of December 31 are summarized as follows:

(in thousands)	2013		2012
Conversion costs, net	$	112,239		85,402
Payments for processing rights, net		72,651		75,865
Total	$	184,890		161,267

Amortization expense related to conversion costs was $19.6 million, $24.1 million and $18.8 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Amortization related to payments for processing rights, which is recorded as a reduction of revenues, was $13.1 million, $13.3 million and $15.9 million for the years ended December 31, 2013, 2012 and 2011, respectively.

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The weighted average useful life for each component of contract acquisition costs, and in total, as of December 31, 2013 is as follows:

	Weighted Average Amortization Period (Yrs)
Payments for processing rights		12.8
Conversion costs		8.3
Total		11.4

Estimated future amortization expense of conversion costs and payments for processing rights as of December 31, 2013 for the next five years is:

(in thousands)	Conversion Costs		Payments for Processing Rights
2014	$	20,537		13,925
2015		28,201		13,358
2016		26,036		10,969
2017		20,678		8,917
2018		18,705		7,952

NOTE 11 Equity Investments

The Company has an equity investment in TSYS de México and records its 49% ownership using the equity method of accounting. The operation prints statements and provides card-issuing support services to the equity investment clients and others.

The Company has an equity investment in CUP Data and records its 44.56% ownership using the equity method of accounting. CUP Data is sanctioned by the People’s Bank of China, China’s central bank, and has become one of the world’s largest and fastest-growing payments networks. CUP Data currently provides transaction processing, disaster recovery and other services for banks and bankcard issuers in China.

TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments. TSYS believes the carrying value approximates the underlying assets of the equity investments.

TSYS’ equity in income of equity investments (net of tax) for the years ended December 31, 2013, 2012 and 2011 was $13.0 million, $10.2 million and $8.7 million, respectively.

A summary of TSYS’ equity investments as of December 31 is as follows:

(in thousands)	2013		2012
CUP Data	$	86,549		79,859
TSYS de México		7,584		7,905
Total	$	94,133		87,764

NOTE 12 Long-term Debt and Capital Lease Obligations

On February 19, 2013, the Company and its wholly-owned merger subsidiary entered into an Agreement and Plan of Merger (as amended on May 29, 2013, the “Merger Agreement”) with NetSpend, pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, the merger subsidiary merged with and into NetSpend on July 1, 2013, with NetSpend continuing as the surviving corporation and as a wholly-owned subsidiary of TSYS (the “Merger”). Refer to Note 23 for more information about the acquisition.

On April 8, 2013, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as Administrative Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Syndication Agent, Regions Bank and U.S. Bank National Association, as Documentation Agents, and other lenders party thereto, with J.P. Morgan Securities LLC, The Bank of Tokyo Mitsubishi UFJ, Ltd., Regions Capital Markets, and U.S. Bank National Association as joint lead arrangers and joint bookrunners. The Credit Agreement provides for a five-year term loan to the Company in the amount of $200.0 million (the “Term Loan”) and bears interest at LIBOR plus 1.125%, which are subject to adjustment based on changes in the Company’s credit ratings, with margins ranging from 1.00 to 1.75%. As of December 31, 2013, the outstanding balance on the Credit Agreement was $195.0 million.

Concurrently with entering into the Merger Agreement, TSYS obtained commitments for a $1.2 billion 364-day bridge term loan facility from JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC and The Bank of Tokyo-Mitsubishi UFJ, Ltd. Thereafter, JPMorgan Chase Bank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. assigned portions of their commitments to other bridge facility lenders. The Company paid fees associated with the bridge term loan of approximately $5.9 million. The total commitments under the bridge term loan facility were eliminated in May 2013 after the issuance of the Notes described below.

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On May 22, 2013, the Company closed its issuance (the “Transaction”) of $550.0 million aggregate principal amount of 2.375% Senior Notes due 2018 and $550.0 million aggregate principal amount of 3.750% Senior Notes due 2023 (collectively, the “Notes”) pursuant to an Underwriting Agreement with J.P. Morgan Securities LLC, as representative of certain underwriters (the “Underwriters”), whereby the Company agreed to sell and the Underwriters agreed to purchase the Notes from the Company, subject to and upon the terms and conditions set forth in the Underwriting Agreement. The interest on the Notes are payable semiannually. The Company paid fees associated with the issuance of these Notes of approximately $8.9 million and recorded discounts of approximately $4.3 million that are being amortized over the life of the Notes. The Company used the net proceeds of the Transaction to pay a portion of the $1.4 billion purchase price of the Company’s acquisition of NetSpend and related fees and expenses. The Notes were issued pursuant to an Indenture dated as of May 22, 2013 between the Company and Wells Fargo Bank, National Association, as trustee. The Company received a rating from Moody’s of Baa3 and a rating from Standard & Poor’s of BBB+ in connection with the Senior Notes at the time of issuance.

The Notes also contain various affirmative and negative covenants, including those that create limitations on the Company’s:

• creation of liens;

• merging or selling assets unless certain conditions are met; and

• entering into sale/leaseback transactions.

The Notes also contain a provision that requires the Company to repurchase all or any portion of a holder’s Notes, at the holder’s option, if a Change in Control Repurchase Event occurs.

Amendment to Existing Credit Agreement

On September 10, 2012, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as Administrative Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Regions Bank and U.S. Bank National Association, as Syndication Agents, and the other lenders named therein, with J.P. Morgan Securities LLC, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Regions Capital Markets and U.S. Bank National Association, as joint lead arrangers and joint bookrunners (the “Existing Credit Agreement”). The Existing Credit Agreement provides for a $350 million five-year unsecured revolving credit

facility (which may be increased by up to an additional $350 million under certain circumstances) and includes a $50 million subfacility for the issuance of standby letters of credit and a $50 million subfacility for swingline loans. The Existing Credit Agreement also provides for a $150 million five-year unsecured term loan, which was fully funded on the closing of the Existing Credit Agreement. As of December 31, 2013, the outstanding balance on the Existing Credit Agreement was $138.8 million.

On April 8, 2013, the Company entered into the First Amendment to the Existing Credit Agreement (the “Revolver”) in order to conform certain provisions of the Existing Credit Agreement to the Credit Agreement for the Term Loan. On July 1, 2013, an additional $100 million was used as funding in the NetSpend Merger. As of December 31, 2013, there was no outstanding balance on the Revolver.

On September 10, 2012 and in connection with entering into the credit facilities described above, the Company terminated its existing credit agreement dated as of December 21, 2007 with Bank of America N.A., as Administrative Agent, The Royal Bank of Scotland plc, as Syndication Agent, and the other lenders named therein. That credit agreement provided for a $252 million five-year unsecured revolving credit facility and a $168 million five-year term loan, both of which were scheduled to mature on December 21, 2012. No material early termination penalties were incurred as a result of the termination.

The Credit Agreement for the aforementioned loan provided for a $168 million unsecured five year term loan to the Company and a $252 million five year unsecured revolving credit facility. The principal balance of loans outstanding under the credit facility bears interest at a rate of LIBOR plus an applicable margin of 0.60%. The applicable margin could vary within a range from 0.27% to 0.725% depending on changes in the Company’s corporate credit rating. Interest was paid on the last date of each interest period; however, if the period exceeded three months, interest was paid every three months after the beginning of such interest period. In addition, the Company paid each lender a fee in respect of the amount of such lender’s commitment under the revolving credit facility (regardless of usage), ranging from 0.08% to 0.15% (currently 0.10%) depending on the Company’s corporate credit rating.

The Company was not required to make any scheduled principal payments other than payment of the entire outstanding balance on December 21, 2012. The Company was able to prepay the revolving

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credit facility and the term loan in whole or in part at any time without premium or penalty, subject to reimbursement of the lenders’ customary breakage and redeployment costs in the case of prepayment of LIBOR borrowings. The Credit Agreement included covenants requiring the Company to maintain certain minimum financial ratios. The Company did not use the revolving credit facility in 2012 or 2011.

TSYS acquired additional mainframe and distributed software licenses to increase capacity as a result of continued increases in transaction volumes. The Company entered into a $20.0 million financing agreement in December 2013 to purchase these additional software licenses. The balance at December 31, 2013 was $20.0 million.

TSYS also acquired additional mainframe software licenses to increase capacity in 2012. The Company entered into an $8.6 million and an $11.9 million financing agreement in June and December 2012, respectively, to purchase these additional software licenses. The balance at December 31, 2013 was $4.6 million and $8.3 million, respectively.

In December 2010, the Company obtained a $39.8 million note payable from a third-party vendor related to financing the purchase of distributed systems software. The note was no longer outstanding at December 31, 2013.

On October 30, 2008, the Company’s International Services segment obtained a credit agreement from a third-party to borrow up to ¥2.0 billion, or approximately $21 million, in a Yen-denominated three-year loan to finance activities in Japan. The rate is LIBOR plus 80 basis points. The Company initially made a draw of ¥1.5 billion, or approximately $15.1 million. In January 2009, the Company made an additional draw down of ¥250 million, or approximately $2.8 million. In April 2009, the Company made an additional draw down of ¥250 million, or approximately $2.5 million. On December 30, 2011, the Company modified its loan to extend the maturity date to November 5, 2014. In December 2013, the Company repaid this loan.

In addition, TSYS maintains an unsecured credit agreement with Columbus Bank and Trust. The credit agreement has a maximum available principal balance of $5.0 million, with interest at prime. TSYS did not use the credit facility during 2013, 2012 or 2011.

Long-term debt as of December 31 consists of:

(in thousands)	2013		2012
$550,000,000 2.375% Senior Notes, due June 1, 2018 (5 year tranche), net of discount	$	549,858		—
$550,000,000 3.75% Senior Notes, due June 1, 2023 (10 year tranche), net of discount		546,027		—
LIBOR + 1.125%, unsecured term loan, due April 8, 2018, with quarterly principal and interest payments		195,000		—
LIBOR + 1.125%, unsecured term loan, due September 10, 2017, with quarterly principal and interest payments		138,750		146,250
LIBOR + 0.80%, unsecured term loan, due November 5, 2014, with principal paid at maturity		—		23,236
1.50% note payable, due December 31, 2015, with monthly interest and principal payments		20,000		—
1.50% note payable, due December 31, 2013, with monthly interest and principal payments		—		13,452
1.50% note payable, due January 31, 2016, with monthly interest and principal payments		8,269		11,825
1.50% note payable, due July 31, 2015, with monthly interest and principal payments		4,604		7,457
Total debt		1,462,508		202,220
Less current portion		34,257		27,361
Noncurrent portion of long-term debt	$	1,428,251		174,859

Required annual principal payments on long-term debt for the five years subsequent to December 31, 2013 are summarized as follows:

(in thousands)
2014	$	34,257
2015		37,030
2016		30,336
2017		125,000
2018		690,000

Capital lease obligations as of December 31 consist of:

(in thousands)	2013		2012
Capital lease obligations	$	30,532		30,418
Less current portion		23,032		13,263
Noncurrent portion of capital leases	$	7,500		17,155

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The future minimum lease payments under capital leases as of December 31, 2013 are summarized as follows:

(in thousands)
2014	$	23,424
2015		3,607
2016		2,397
2017		1,461
2018		247
Total minimum lease payments		31,136
Less amount representing interest		604
Principal minimum lease payments	$	30,532

NOTE 13 Other Current Liabilities

Significant components of other current liabilities as of December 31 are summarized as follows:

(in thousands)	2013		2012
Deferred revenues	$	36,850		29,101
Dissenting shareholder liability*		25,723		—
Accrued expenses		24,236		30,963
Dividends payable		19,508		729
Accrued income taxes		6,410		10,936
Pass through expenses		8,379		8,532
Commissions		6,546		—
Other		37,036		20,021
Total	$	164,688		100,282

* Refer to Note 23 on acquisitions for additional information.

NOTE 14 Income Taxes

The provision for income taxes includes income taxes currently payable and those deferred because of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities.

The components of income tax expense included in the Consolidated Statements of Income were as follows:

	Years Ended December 31,
(in thousands)	2013			2012			2011
Current income tax expense:
Federal	$	69,838			98,153			83,518
State		2,949			2,572			4,666
Foreign		12,637			14,092			12,922
Total current income tax expense		85,424			114,817			101,106
Deferred income tax expense (benefit):
Federal		27,447			1,395			3,126
State		(55	)		411			61
Foreign		(447	)		(1,521	)		(1,696	)
Total deferred income tax expense		26,945			285			1,491
Total income tax expense	$	112,369			115,102			102,597

	Years Ended December 31,
(in thousands)	2013		2012		2011
Components of income before income tax expense:
Domestic	$	327,801		320,581		279,416
Foreign		28,118		34,273		37,135
Total income before income tax expense	$	355,919		354,854		316,551

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Income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate of 35% to income before income taxes, noncontrolling interest and equity in income of equity investments as a result of the following:

	Years Ended December 31,
(in thousands)	2013			2012			2011
Computed “expected” income tax expense	$	124,572			124,199			110,793
Increase (decrease) in income tax expense resulting from:
International tax rate differential		3,228			2,781			1,831
State income tax expense, net of federal income tax effect		3,495			2,143			3,164
Increase in valuation allowance		549			193			3,773
Tax credits		(6,148	)		(3,762	)		(9,044	)
Deduction for domestic production activities		(8,225	)		(5,727	)		(5,524	)
Permanent differences and other, net		(5,102	)		(4,725	)		(2,396	)
Total income tax expense	$	112,369			115,102			102,597

Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability as of December 31, 2013 and 2012 relate to the following:

(in thousands)	2013			2012
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$	30,872			24,405
Allowances for doubtful accounts and billing adjustments		728			644
Deferred revenue		20,111			18,645
Other, net		45,705			41,348
Total deferred income tax assets		97,416			85,042
Less valuation allowance for deferred income tax assets		(19,949	)		(19,400	)
Net deferred income tax assets		77,467			65,642
Deferred income tax liabilities:
Excess tax over financial statement depreciation		(45,709	)		(36,682	)
Computer software development costs		(55,074	)		(39,637	)
Purchase accounting adjustments		(168,689	)		(4,514	)
Foreign currency translation		(10,291	)		(8,574	)
Other, net		(5,821	)		(9,150	)
Total deferred income tax liabilities		(285,584	)		(98,557	)
Net deferred income tax liabilities	$	(208,117	)		(32,915	)
Total net deferred tax assets (liabilities):
Current	$	14,770			9,825
Noncurrent		(222,887	)		(42,740	)
Net deferred income tax liability	$	(208,117	)		(32,915	)

As of December 31, 2013, TSYS had recognized deferred tax assets from net operating losses, capital losses and federal and state income tax credit carryforwards of $18.2 million, $1.9 million and $10.8 million, respectively. As of December 31, 2012, TSYS had recognized deferred tax assets from net operating losses, capital losses and federal and state income tax credit carry forwards of $13.4 million, $1.9 million and $9.1 million, respectively. Some of the net operating losses and some of the tax credits began expiring in 2012.

In assessing the realizability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

Management believes it is more likely than not that TSYS will realize the benefits of these deductible differences, net of existing valuation allowances. The valuation allowance for deferred tax assets was $19.9 million and $19.4 million as of December 31, 2013 and 2012, respectively. The increase in the valuation allowance for deferred income tax assets was $0.5 million for 2013. The increase in the valuation allowance for deferred income tax assets was $0.2 million for 2012. The increase relates to foreign losses and state tax credits which, more likely than not, will not be realized in later years.

TSYS has adopted the permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain foreign subsidiaries. As a result, TSYS considers foreign earnings related to these foreign operations to be permanently reinvested. No provision for U.S. federal and state incomes taxes has been made in the consolidated financial statements for those non-U.S. subsidiaries whose earnings are considered to be reinvested. The amount of undistributed earnings considered to be “reinvested” which may be subject to tax upon distribution was approximately $79.0 million as of December 31, 2013. Although TSYS does not intend to repatriate these earnings, a distribution of these non-U.S. earnings in the form of dividends, or otherwise, would subject the Company to both U.S. federal and state income taxes, as adjusted for non-U.S. tax credits, and withholding taxes payable to the various non-U.S. countries. Determination of the amount of any unrecognized

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deferred income tax liability on these undistributed earnings is not practicable.

TSYS is the parent of an affiliated group that files a consolidated U.S. federal income tax return and most state and foreign income tax returns on a separate entity basis. In the normal course of business, the Company is subject to examinations by these taxing authorities unless statutory examination periods lapse. TSYS is no longer subject to U.S. federal income tax examinations for years before 2009 and with few exceptions, the Company is no longer subject to income tax examinations from state and local or foreign tax authorities for years before 2005. There are currently federal income tax examinations in progress for the years 2009 and 2010 for a subsidiary which was acquired this year. Additionally, a number of tax examinations are in progress by the relevant state tax authorities. Although TSYS is unable to determine the ultimate outcome of these examinations, TSYS believes that its recorded liability for uncertain tax positions relating to these jurisdictions for such years is adequate.

TSYS adopted the provisions of ASC 740 on January 1, 2007 which prescribes a recognition threshold and measurement attribute for the financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken in a tax return. During the year ended December 31, 2013, TSYS decreased its liability for prior year uncertain income tax positions as a discrete item by a net amount of approximately $6.3 million (net of the federal tax effect). This decrease resulted from refunds received and TSYS reassessing its tax positions. The Company is not able to reasonably estimate the amount by which the liability will increase or decrease over time; however, at this time, the Company does not expect any significant changes related to these obligations within the next twelve months.

A reconciliation of the beginning and ending amount of unrecognized tax liabilities is as follows ¹:

(in millions)	Year Ended December 31, 2013
Beginning balance	$	9.0
Current activity:
Additions based on tax positions related to current year		0.7
Additions for tax positions of prior years		1.5
Reductions for tax positions of prior years		(6.0	)
Settlements		(2.5	)
Net, current activity		(6.3	)
Ending balance	$	2.7

1 Unrecognized state tax liabilities are not adjusted for the federal tax impact.

TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the Consolidated Statements of Income. Gross accrued interest and penalties on unrecognized tax benefits totaled $0.3 million and $0.9 million as of December 31, 2013 and December 31, 2012, respectively. The total amounts of unrecognized income tax benefits as of December 31, 2013 and December 31, 2012 that, if recognized, would affect the effective tax rates are $2.8 million and $8.8 million (net of the federal benefit on state tax issues), respectively, which includes interest and penalties of $0.2 million and $0.7 million, respectively.

NOTE 15 Commitments and Contingencies

LEASE COMMITMENTS:    TSYS is obligated under noncancelable operating leases for computer equipment and facilities.

The future minimum lease payments under noncancelable operating leases with remaining terms greater than one year for the next five years and thereafter and in the aggregate as of December 31, 2013, are as follows:

(in thousands)
2014	$	123,807
2015		121,904
2016		111,455
2017		43,517
2018		23,210
Thereafter		42,208
Total future minimum lease payments	$	466,101

The majority of computer equipment lease commitments come with a renewal option or an option to terminate the lease. These lease commitments may be replaced with new leases which allow the Company to continually update its computer equipment. Total rental expense under all operating leases in 2013, 2012 and 2011 was $95.7 million, $99.0 million and $97.5 million, respectively.

CONTRACTUAL COMMITMENTS:    In the normal course of its business, the Company maintains long-term processing contracts with its clients. These processing contracts contain commitments, including, but not limited to, minimum standards and time frames against which the Company’s performance is measured. In the event the Company does not meet its contractual commitments with its clients, the Company may incur penalties and certain clients may have the right to terminate their contracts

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with the Company. The Company does not believe that it will fail to meet its contractual commitments to an extent that will result in a material adverse effect on its financial position, results of operations or cash flows.

CONTINGENCIES:

Legal Proceedings — General

The Company is subject to various legal proceedings and claims and is also subject to information requests, inquiries and investigations arising out of the ordinary conduct of its business. The Company establishes reserves for litigation and similar matters when those matters present loss contingencies that TSYS determines to be both probable and reasonably estimable in accordance with ASC 450, “Contingencies.” In the opinion of management, based on current knowledge and in part upon the advice of legal counsel, all matters not specifically discussed below are believed to be adequately covered by insurance, or, if not covered, the possibility of losses from such matters are believed to be remote or such matters are of such kind or involve such amounts that would not have a material adverse effect on the financial position, results of operations or cash flows of the Company if disposed of unfavorably.

Settlement of Certain Litigation

As previously disclosed, a putative class action entitled Koehler v. NetSpend Holdings, Inc. et. al. (the “Koehler action”) was filed in the Court of Chancery of the State of Delaware on March 1, 2013 and a putative class action entitled Bushansky v. NetSpend Holdings, Inc. et al. (together with the Koehler action, the “Actions”) was filed in the District Court of Travis County, Texas on February 25, 2013, each in connection with TSYS’ proposed merger with NetSpend pursuant to the Merger Agreement. On May 21, 2013, the Delaware Chancery Court issued a memorandum opinion in the Koehler action denying the plaintiff’s motion for a preliminary injunction, which sought to enjoin a shareholder vote on the proposed merger.

While TSYS and the other defendants believed that each of the Actions was without merit, in an effort to minimize the cost and expense of any litigation relating to such Actions, on May 29, 2013, the defendants reached an agreement in principle with the plaintiffs regarding settlement of the Actions. In connection with the settlement contemplated by that agreement in principle, and, later, a Settlement Agreement, dated as of September 20, 2013 (the

“Settlement Agreement”), the Actions and all claims asserted therein would be dismissed. In addition, pursuant to the terms of the Settlement Agreement, TSYS and/or NetSpend, where applicable, agreed (a) to make certain amendments to the Merger Agreement; (b) that, consistent with the terms of the Merger Agreement, prior to the receipt of approval of the NetSpend stockholders, NetSpend could furnish information to, and engage in discussions and negotiations with, third parties who make unsolicited bona fide acquisition proposals if certain conditions were met; (c) that the special meeting of NetSpend stockholders that was scheduled to be held on May 31, 2013 would be adjourned to June 18, 2013; (d) that NetSpend would not take certain positions with respect to any appraisal proceeding perfected under Delaware law; (e) that certain information would be provided to counsel for the plaintiffs in the Actions in connection with any perfected appraisal proceeding; and (f) without admitting that any of the claims in the Actions have merit or that any supplemental disclosure was required under any applicable statute, rule, regulation or law, that they would acknowledge that the filing and prosecution of the Actions were the cause, in whole or in part, of certain supplemental disclosures made in connection with the proposed merger.

The Settlement Agreement was submitted to the Court of Chancery on October 4, 2013, and on December 18, 2013, after considering the terms of the settlement, the Delaware Chancery Court entered an order approving the proposed settlement and dismissing the Actions with prejudice. Under the terms of the Settlement Agreement, the settlement became final upon the expiration of the time for any appeal of the court’s December 18, 2013 order, or thirty days following December 18, 2013.

GUARANTEES AND INDEMNIFICATIONS:    The Company has entered into processing and licensing agreements with its clients that include intellectual property indemnification clauses. Under these clauses, the Company generally agrees to indemnify its clients, subject to certain exceptions, against legal claims that TSYS’ services or systems infringe on certain third party patents, copyrights or other proprietary rights. In the event of such a claim, the Company is generally obligated to hold the client harmless and pay for related losses, liabilities, costs and expenses, including, without limitation, court costs and reasonable attorney’s fees. The Company has not made any indemnification payments pursuant to these indemnification clauses.

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A portion of the Company’s business is conducted through distributors that provide load and reload services to cardholders at their locations. Members of the Company’s distribution and reload network collect cardholder funds and remit them by electronic transfer to the Issuing Banks for deposit in the cardholder accounts. The Company’s Issuing Banks typically receive cardholders’ funds no earlier than three business days after they are collected by the distributor. If any distributor fails to remit cardholders’ funds to the Company’s Issuing Banks, the Company typically reimburses the Issuing Banks for the shortfall created thereby. The Company manages the risk associated with this process through a formalized set of credit standards, volume limits and deposit requirements for certain distributors and by typically maintaining the right to offset any settlement shortfall against the commissions payable to the relevant distributor. To date, the Company has not experienced any significant losses associated with settlement failures and the Company had not recorded a settlement guarantee liability as of December 31, 2013. As of December 31, 2013, the Company’s estimated gross settlement exposure was $8.8 million.

GPR cardholders can incur charges in excess of the funds available in their accounts and are liable for the resulting overdrawn account balance. Although the Company generally declines authorization attempts for amounts that exceed the available balance in a cardholder’s account, the application of the Networks’ rules and regulations, the timing of the settlement of transactions and the assessment of subscription, maintenance or other fees can, among other things, result in overdrawn card accounts. The Company also provides, as a courtesy and in its discretion, certain cardholders with a “cushion” that allows them to overdraw their card accounts by up to $10. In addition, eligible cardholders may enroll in the Issuing Banks’ overdraft protection programs and fund transactions that exceed the available balance in their accounts. The Company generally provides the funds used as part of these overdraft programs (MetaBank will advance the first $1.0 million on behalf of its cardholders) and is responsible to the Issuing Banks for any losses associated with any overdrawn account balances. As of December 31, 2013, cardholders’ overdrawn account balances totaled $13.8 million. As of December 31, 2013, the Company’s reserves for the losses it estimates will arise from processing customer transactions, debit card overdrafts, chargebacks for unauthorized card use and merchant-related chargebacks due to non-delivery of goods or services was $5.8 million.

The Company has not recorded a liability for guarantees or indemnities in the accompanying consolidated balance sheet since the maximum amount of potential future payments under such guarantees and indemnities is not determinable.

PRIVATE EQUITY INVESTMENTS:    On May 31, 2011, the Company entered into a limited partnership agreement in connection with its agreement to invest in an Atlanta, Georgia-based venture capital fund focused exclusively on investing in technology-enabled financial services companies. Pursuant to the limited partnership agreement, the Company has committed to invest up to $20 million in the fund so long as its ownership interest in the fund does not exceed 50%. As of December 31, 2013, the Company had made investments in the fund of $6.0 million and recognized a cumulative gain of $1.8 million due to an increase in fair value.

NOTE 16 Employee Benefit Plans

The Company provides benefits to its employees by offering employees participation in certain defined contribution plans. The employee benefit plans through which TSYS provided benefits to its employees during 2013 are described as follows:

TSYS RETIREMENT SAVINGS PLAN:    TSYS maintains a single plan, the Retirement Savings Plan, which is designed to reward all team members of TSYS U.S.-based companies with a uniform employer contribution. The terms of the plan provide for the Company to match 100% of the employee contribution up to 4% of eligible compensation. The Company can make discretionary contributions up to another 4% based upon business conditions. The Company’s contributions to the plan charged to expense for the years ended December 31 are as follows:

(in thousands)	2013		2012		2011
TSYS Retirement Savings Plan	$	14,506		13,421		15,951

STOCK PURCHASE PLAN:    The Company maintains a stock purchase plan for employees and previously maintained a stock purchase plan for directors. The Company contributes 15% of employee contributions and contributed 15% of director voluntary contributions. The funds are used to purchase presently issued and outstanding shares of TSYS common stock on the open market at fair market value for the benefit of participants. The Director Stock Purchase Plan was terminated on

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November 30, 2011. The Company’s contributions to these plans charged to expense for the years ended December 31 are as follows:

(in thousands)	2013		2012		2011
TSYS Stock Purchase Plan	$	1,236		1,140		1,177

POSTRETIREMENT MEDICAL BENEFITS PLAN:    TSYS provides certain medical benefits to qualified retirees through a postretirement medical benefits plan, which is immaterial to the Company’s consolidated financial statements. The measurement of the benefit expense and accrual of benefit costs associated with the plan do not reflect the effects of the 2003 Medicare Act. Additionally, the benefit expense and accrued benefit cost associated with the plan, as well as any potential impact of the effects of the 2003 Medicare Act, are not significant to the Company’s consolidated financial statements.

NOTE 17 Equity

DIVIDENDS: Dividends on common stock of $56.5 million were paid in 2013, compared to $94.0 million and $53.9 million in 2012 and 2011, respectively. The decrease in dividends paid in 2013 compared to 2012 is due to the acceleration of payment of the fourth quarter 2012 dividend. The fourth quarter 2012 dividend payment was paid in December, rather than January, to allow shareholders to benefit from the lower dividend tax rate that was set to expire on December 31, 2012.

EQUITY COMPENSATION PLANS:    The following table summarizes TSYS’ equity compensation plans by category as of December 31, 2013:

(in thousands, except per share data) Plan Category	(a) Number of securities to be  issued upon exercise of outstanding options, warrants and rights		(b) Weighted-average exercise price of outstanding options, warrants and rights		(c) Number of securities  remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by security holders		5,752	$	20.96		11,544	1
Equity compensation plans not approved by security holders		—		—		—
Total		5,752	$	20.96		11,544

1 Includes 11,543,910 shares available for future grants under the Total System Services, Inc. 2007 Omnibus Plan and 2012 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares.

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CHANGES IN TSYS’ OWNERSHIP INTEREST IN SUBSIDIARIES:    TSYS’ subsidiary GP Net repurchased 400 common shares on December 29, 2011 from its noncontrolling interest. As a result of the transaction, TSYS’ ownership increased to 54.08% from 53.00%. The following table presents the effect on TSYS’ shareholders’ equity from GP Net’s acquisition of treasury shares:

(in thousands)	Year Ended December 31, 2011
Increase in OCI	$	28
Increase in additional paid in capital		77
Effect from change in noncontrolling interests	$	105

NOTE 18 Share-Based Compensation

General Description of Share-Based Compensation Plans

TSYS has various long-term incentive plans under which the Compensation Committee of the Board of Directors has the authority to grant share-based compensation to TSYS employees.

Employee stock options granted during or after 2006 (other than performance-based stock options) generally become exercisable in three equal annual installments on the anniversaries of the date of grant and expire ten years from the date of grant. Vesting for stock options granted during the years 2006 through 2009 (other than performance-based stock options) accelerate upon retirement for employees who have reached age 62 and who also have no less than fifteen years of service, or are 65, at the date of their election to retire. For stock options granted during the years 2006 through 2009, share-based compensation expense is fully recognized for plan participants upon meeting the retirement eligibility requirements of age and service. Employees not retirement eligible who terminate employment only received the shares for the full vesting periods completed.

Stock options granted during 2010 and 2011 generally become exercisable in three equal annual installments on the anniversaries of the date of grant and expire ten years from the date of grant. These options vest on a pro-rata basis upon retirement based upon the number of months employed during the year of retirement. For stock options granted during 2010 and 2011, share-based compensation expense is fully recognized for plan participants upon meeting the retirement eligibility requirements of age and service. Employees not retirement eligible who terminate employment only received the shares for the full vesting periods completed.

Stock options granted subsequent to 2011 generally become exercisable in three equal annual installments on the anniversaries of the date of grant and expire ten years from the date of grant. For employees who retire during the first 18 months of the options term, the options vest on a pro-rata basis based upon the number of months employed during the year of retirement. If the employee retires after the 18-month period, vesting is accelerated upon retirement. When an employee meets the requirements for retirement eligibility after the 18-month period but before the final vesting period, the employee is fully vested in the options at that time. Employees not retirement eligible who terminate employment only received the shares for the full vesting periods completed.

Stock options granted prior to 2006 generally become exercisable at the end of a two to three-year period and expire ten years from the date of grant. Vesting for stock options granted prior to 2006 accelerates upon retirement for plan participants who have reached age 50 and who also have no less than fifteen years of service at the date of their election to retire. Following adoption of ASC 718, share-based compensation expense is recognized in income over the remaining nominal vesting period with consideration for retirement eligibility.

Long-Term Incentive Plans

TSYS maintains the Total System Services, Inc. 2012 Omnibus Plan, Total System Services, Inc. 2007 Omnibus Plan, Total System Services, Inc. 2002 Long-Term Incentive Plan, Total System Services, Inc. 2000 Long-Term Incentive Plan and the Amended and Restated NetSpend Holdings, Inc. 2004 Equity Incentive Plan for Options and Restricted Shares Assumed by Total System Services, Inc. to advance the interests of TSYS and its shareholders through awards that give employees and directors a personal stake in TSYS’ growth, development and financial success. Awards under these plans are designed to motivate employees and directors to devote their best efforts to the business of TSYS. Awards will also help TSYS attract and retain the services of employees and directors who are in a position to make significant contributions to TSYS’ success.

The plans are administered by the Compensation Committee of the Company’s Board of Directors and enable the Company to grant nonqualified and incentive stock options, stock appreciation rights, restricted stock and restricted stock units, performance units or performance shares, cash-based awards, and other stock-based awards.

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All stock options must have a maximum life of no more than ten years from the date of grant. The exercise price will not be less than 100% of the fair market value of TSYS’ common stock at the time of grant. Any shares related to awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares, are settled in cash in lieu of shares, or are exchanged with the Committee’s permission, prior to the issuance of shares, for awards not involving shares, shall be available again for grant under the various plans. The aggregate number of shares of TSYS stock which may be granted to participants pursuant to awards granted under the various plans may not exceed the following: Total System Services, Inc. 2012 Omnibus Plan –17 million shares; Total System Services, Inc. 2007 Omnibus Plan –5 million shares; Total System Services, Inc. 2002 Long-Term Incentive Plan –9.4 million shares; and Total System Services, Inc. 2000 Long-Term Incentive Plan –2.4 million shares. Effective February 1, 2010 and March 5, 2012, no additional awards may be made from the Total System Services, Inc. 2000 and 2002 Long-Term Incentive Plans, respectively.

Share-Based Compensation

TSYS’ share-based compensation costs are included as expenses and classified as cost of services and selling, general and administrative. TSYS does not include amounts associated with share-based compensation as costs capitalized as software development and contract acquisition costs as these awards are typically granted to individuals not involved in capitalizable activities. For the year ended December 31, 2013, share-based compensation was $28.9 million compared to $18.6 million and $16.5 million for the same periods in 2012 and 2011, respectively.

Nonvested Awards:    The Company granted shares of TSYS common stock to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued under nonvested stock bonus awards for services to be provided in the future by such officers and employees. The grants to the Board of Directors were fully vested on the date of grant. The following table summarizes the number of shares granted each year:

	2013		2012		2011
Number of shares		1,667,246		310,690		206,040
Market value (in millions)	$	41.3		6.7		3.6

On July 1, 2013, the Company issued 870,361 shares of TSYS common stock as nonvested stock replacement awards with a market value of $21.5 million as part of the NetSpend acquisition. The nonvested stock bonus awards to employees of NetSpend are for services to be provided in the future and vest over varying periods. The NetSpend awards were converted into equivalent shares of Company’s common stock on the acquisition date. The value of the stock at the date of issuance is charged as compensation expense over the vesting periods of the awards.

On July 18, 2013, the Company issued 212,694 retention shares of TSYS common stock with a market value of $5.5 million to certain key employees of NetSpend. The nonvested stock bonus awards to certain key employees are for services to be provided in the future and vest over periods ranging from two to four years. The market value of the TSYS common stock at the date of issuance is charged as compensation expense over the vesting periods of the awards.

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A summary of the status of TSYS’ nonvested shares as of December 31, 2013, 2012 and 2011 and the changes during the periods are presented below:

	2013					2012					2011
Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value
Outstanding at beginning of year		554		$	19.96		618		$	16.80		821		$	16.91
Granted 1		1,667			24.75		311			21.47		206			17.67
Vested		(328	)		19.95		(366	)		15.91		(376	)		17.60
Forfeited/canceled		(110	)		23.82		(9	)		19.85		(33	)		15.71
Outstanding at end of year		1,783		$	24.19		554		$	19.96		618		$	16.80

1 Includes the issuance of approximately 870,361 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $21.5 million. A portion of the expense associated with these options has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

As of December 31, 2013, there was approximately $30.8 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted average period of 2.2 years.

On July 18, 2013, TSYS issued 225,000 shares of TSYS common stock as a performance-based retention stock award to a certain key executive with a performance-based vesting schedule. The performance-based stock award has a 2013-2015 performance period for which the Compensation Committee of the Board of Directors established two performance goals: revenues of the NetSpend segment and operating income of the NetSpend segment and, if such goals are attained in 2015, the performance-based award will vest, up to a maximum of 100% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company estimates the probability of achieving the goals through the performance period and expenses the award on a straight-line basis. Compensation costs related to the performance-based stock award are expected to be recognized until the end of 2015.

On July 1, 2013, the Company issued 87,356 shares of TSYS common stock as a performance-based replacement stock award as part of the NetSpend acquisition. The performance-based stock award has a 2013-2015 performance period for which the Compensation Committee of the Board of Directors established two performance goals: revenues of the NetSpend segment and operating income of the NetSpend segment and, if such goals are attained in

2015, the performance award will vest, up to a maximum of 100% of the total grant. The Company estimates the probability of achieving the goals through the performance period and expenses the award on a straight-line basis. Compensation costs related to the performance-based stock award are expected to be recognized until the end of 2015.

In April 2013, TSYS authorized a total grant of 237,679 performance shares to certain key executives with a performance-based vesting schedule (2013 performance shares). These 2013 performance shares have a 2013-2015 performance period for which the Compensation Committee of the Board of Directors established two performance goals: compound growth in revenues before reimbursable items and income from continuing operations and, if such goals are attained in 2015, the performance shares will vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company estimates the probability of achieving the goals through the performance period and expenses the award on a straight-line basis. Compensation costs related to these performance shares are expected to be recognized until the end of 2015.

In March 2012, TSYS authorized a total grant of 241,095 performance shares to certain key executives with a performance based vesting schedule (2012 performance shares). These 2012 performance shares have a 2012-2014 performance period for which the Compensation Committee of the Board of Directors established two performance goals: compound growth in revenues before reimbursable items and income from continuing operations and, if such goals are attained in 2014, the performance shares will

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vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company estimates the probability of achieving the goals through the performance period and will expense the award on a straight-line basis. Compensation costs related to these performance shares are expected to be recognized until the end of 2014.

In March 2011, TSYS authorized a total grant of 263,292 performance shares to certain key executives with a performance based vesting schedule (2011 performance shares). These 2011 performance shares have a 2011-2013 performance period for which the Compensation Committee of the Board of Directors established two performance goals: compound growth in revenues before reimbursable items and income from continuing operations and, if such goals are attained in 2013, the performance shares will vest, up to a maximum of 200% of the total grant.

Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. On January 22, 2014, when the Committee certified performance, the performance shares vested at approximately 153% of the total grant.

As of December 31, 2013, there was approximately $13.9 million of total unrecognized compensation cost related to the 2012 and 2013 performance shares compensation arrangement. That cost is expected to be recognized until the end of 2015.

A summary of the awards authorized in each year is below:

	Total Number of Shares Awarded		Potential Number of Performance- Based Shares  to be Vested
2013		563,803		563,803	(2016	)
2012		241,095		458,082	(2015	)
2011		263,292		403,521	(2014	)

A summary of the status of TSYS’ performance-based nonvested shares as of December 31, 2013, 2012 and 2011 and changes during those periods are presented below:

	2013					2012					2011
Performance-based Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Outstanding at beginning of year		809		$	18.76		580		$	16.68		316		$	15.65
Granted 1		564			24.88		278			22.91		300			17.63
Vested		(324	)		15.93		(37	)		18.08		(36	)		15.61
Forfeited/canceled		—			—		(12	)		16.57		—			—
Outstanding at end of year		1,049		$	22.75		809		$	18.76		580		$	16.68

1 Includes the issuance of approximately 87,356 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $2.2 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

Stock Option Awards

On July 1, 2013, the Company issued 1,060,148 stock option replacement awards with a market value of $13.7 million as part of the NetSpend acquisition. The weighted average fair value of the options was $12.93 and was calculated on the date of grant using a conversion factor into equivalent shares of the Company’s common stock on the acquisition date. The grants vest over a period ranging from seven months to 45 months. The weighted average fair value of the option grants was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions: exercise price of $11.68; risk-free interest rate of 1.31%; expected volatility of 29.22%; expected term of 4.7 years; and dividend yield of 1.63%.

During 2013, 2012 and 2011, the Company granted stock options to key TSYS executive officers and non-management members of its Board of Directors. The grants to key TSYS executive officers were issued for services to be provided in the future and vest over a period of three years. The grants to the Board of Directors were fully vested on the date of grant. The average fair value of the options granted was estimated on the date of grant using the Black-Scholes-Merton option-pricing model.

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The following table summarizes the weighted average assumptions, and the weighted average fair value of the options:

	2013			2012			2011
Number of options granted		1,939,796			818,090			716,508
Weighted average exercise price	$	17.42		$	22.95		$	17.61
Risk-free interest rate		1.31	%		1.69	%		2.96	%
Expected volatility		26.81	%		24.11	%		29.98	%
Expected term (years)		6.0			7.9			8.5
Dividend yield		1.64	%		1.75	%		1.59	%
Weighted average fair value	$	9.48		$	5.27		$	5.78

A summary of TSYS’ stock option activity as of December 31, 2013, 2012 and 2011, and changes during the years ended on those dates is presented below:

	2013					2012					2011
(in thousands, except per share data)	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Options:
Outstanding at beginning of year		6,065		$	21.27		6,082		$	20.61		8,810		$	23.40
Granted 1		1,940			17.42		818			22.95		717			17.61
Exercised		(2,177	)		18.75		(619	)		16.15		(597	)		13.51
Forfeited/canceled		(76	)		16.78		(216	)		23.73		(2,848	)		29.96
Outstanding at end of year		5,752		$	20.96		6,065		$	21.27		6,082		$	20.61
Options exercisable at year-end		3,232		$	23.02		3,235		$	24.12		3,122		$	25.00
Weighted average fair value of options granted during the year				$	9.48				$	5.27				$	5.78

1 Includes the issuance of approximately 1.1 million stock option replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $13.7 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

As of December 31, 2013, the average remaining contractual life and intrinsic value of TSYS’ outstanding and exercisable stock options were as follows:

	Outstanding		Exercisable
Average remaining contractual life (in years)		6.5		4.5
Aggregate intrinsic value (in thousands)	$	70,851	$	33,143

Shares Issued for Options Exercised

During 2013, 2012 and 2011, employees of the Company exercised options for shares of TSYS common stock that were issued from treasury. The table below summarizes these stock option exercises by year:

(in thousands)	Options Exercised and Issued from Treasury		Intrinsic Value
2013		2,177	$	16,580
2012		619		4,243
2011		597		3,627

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For awards granted before January 1, 2006 that were not fully vested on January 1, 2006, the Company will record the tax benefits from the exercise of stock options as increases to the “Additional paid-in capital” line item of the Consolidated Balance Sheets. If the Company does recognize tax benefits, the Company will record these tax benefits from share-based compensation costs as cash inflows in the financing section and cash outflows in the operating section in the Statement of Cash Flows. The Company has elected to use the short-cut method to calculate its historical pool of windfall tax benefits.

As of December 31, 2013, there was approximately $6.1 million of total unrecognized compensation cost related to TSYS stock options that is expected to be recognized over a remaining weighted average period of 1.4 years.

NOTE 19 Treasury Stock

The following table summarizes shares held as treasury stock and their related carrying value at December 31 :

(in thousands)	Number of Treasury Shares		Treasury Shares Cost
2013		15,073	$	326,996
2012		15,440		287,301
2011		12,829		225,034

Stock Repurchase Plan

On April 20, 2010, TSYS announced a stock repurchase plan to purchase up to 10 million shares of TSYS stock. The shares may be purchased from time to time over the next two years at prices considered attractive to the Company. On May 3, 2011, TSYS announced that its Board had approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 10 million shares to up to 15 million shares of TSYS stock. On July 24, 2012, TSYS announced that its Board had approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 15 million shares to up to 20 million shares of TSYS stock. The expiration date of the plan was also extended to April 30, 2014. During 2013, the Company purchased 3.1 million shares for approximately $97.6 million, at an average price of $31.48. During 2012, the Company purchased 3.2 million shares for approximately $74.6 million, at an average price of $23.31. During 2011, the Company purchased 6.6 million shares for approximately $120.6 million, at an average price of $18.28. In January 2014, the TSYS Board approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 20 million shares to up to 28 million shares of TSYS stock. With the increase, TSYS has 12.0 million shares available to be repurchased. In addition, the expiration date of the plan was extended to April 30, 2015.

The following table sets forth information regarding the Company’s purchases of its common stock on a monthly basis during the three months ended December 31, 2013:

(in thousands, except per share data)	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Cumulative shares Purchased as Part of Publicly announced Plans or Programs		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
October 2013		—	$	—		12,893		7,107
November 2013		—		—		12,893		7,107
December 2013		3,100		31.48		15,993		4,007
Total		3,100	$	31.48

Treasury Shares

In 2008, the Compensation Committee approved “share withholding for taxes” for all employee nonvested awards, and also for employee stock options under specified circumstances. The dollar amount of the income tax liability from each exercise is converted into TSYS shares and withheld at the statutory minimum. The shares are added to the treasury account and TSYS remits funds to the Internal Revenue Service to settle the tax liability. During 2013 and 2012, the Company acquired 264,383 shares for approximately $6.3 million and 31,000 shares for approximately $671,000, respectively, as a result of share withholding for taxes.

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NOTE 20 Other Comprehensive Income (Loss)

Comprehensive income (loss) for TSYS consists of net income, cumulative foreign currency translation adjustments, unrealized gain on available for sale securities and the recognition of an overfunded or underfunded status of a defined benefit postretirement plan recorded as a component of shareholders’ equity. The income tax effects allocated to and the cumulative balance of each component of accumulated other comprehensive income (loss) are as follows:

(in thousands)	Beginning Balance			Pretax amount			Tax effect			Net-of-tax Amount			Ending Balance
As of December 31, 2010	$	5,673			(9,747	)		(1,489	)		(8,258	)	$	(2,585	)
Foreign currency translation adjustments	$	(1,242	)		3,718			2,662			1,056		$	(186	)
Transfer from noncontrolling interest (NCI)		—			28			—			28			28
Change in accumulated other comprehensive income (OCI) related to postretirement healthcare plans		(1,343	)		1,651			595			1,056			(287	)
As of December 31, 2011	$	(2,585	)		5,397			3,257			2,140		$	(445	)
Foreign currency translation adjustments	$	(186	)		4,875			1,357			3,518		$	3,332
Transfer from NCI		28			—			—			—			28
Change in accumulated OCI related to postretirement healthcare plans		(287	)		(2,603	)		(938	)		(1,665	)		(1,952	)
As of December 31, 2012	$	(445	)		2,272			419			1,853		$	1,408
Foreign currency translation adjustments	$	3,332			(295	)		1,033			(1,328	)	$	2,004
Transfer from NCI		28			—			—			—			28
Gain on available for sale securities		—			2,810			1,037			1,773			1,773
Change in accumulated OCI related to postretirement healthcare plans		(1,952	)		1,926			30			1,896			(56	)
As of December 31, 2013	$	1,408			4,441			2,100			2,341		$	3,749

Consistent with its overall strategy of pursuing international investment opportunities, TSYS adopted the permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain foreign subsidiaries. Its decision to permanently reinvest foreign earnings offshore means TSYS will no longer allocate taxes to foreign currency translation adjustments associated with these foreign subsidiaries accumulated in other comprehensive income.

NOTE 21 Segment Reporting, including Geographic Area Data and Major Customers

ASC 280, “Segment Reporting” establishes standards for the way public business enterprises are to report information about operating segments in annual financial statements and requires those enterprises to report selected financial information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosures about products and services, geographic area data and major customers.

TSYS provides global payment processing and other services to card-issuing and merchant acquiring institutions in the United States and internationally through online accounting and electronic payment processing systems. Corporate expenses, such as finance, legal, human resources, mergers and acquisitions and investor relations are categorized as Corporate Administration.

On July 1, 2013, TSYS completed its acquisition of all the outstanding stock of NetSpend, which previously operated as a publicly traded company. NetSpend’s financial results are included in the NetSpend segment.

On December 26, 2012, TSYS completed its acquisition of all the outstanding stock of ProPay, a privately-held payment solutions company. ProPay’s financial results are included in the Merchant Services segment.

On August 8, 2012, TSYS completed its acquisition of 60% of CPAY, a privately held direct merchant acquirer. CPAY’s financial results are included in the Merchant Services segment.

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet, an Atlanta, Georgia-based merchant acquirer. TermNet’s financial results are included in the Merchant Services segment.

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Refer to Note 23 for more information on acquisitions.

North America Services includes electronic payment processing services and other services provided from within the North America region. International Services includes electronic payment processing and other services provided from outside the North America region. Merchant Services includes electronic processing and other services provided to merchants and merchant acquirers. The NetSpend segment provides GPR prepaid debit and payroll cards and alternative financial service solutions to the underbanked and other consumers in the United States.

At TSYS, the chief operating decision maker (CODM) is a group consisting of Senior Executive Management and above. The information utilized by the CODM consists of the financial statements and the main metrics monitored are revenue growth and growth in profitability. Upon completion of the NetSpend acquisition, the CODM implemented a new metric called adjusted segment operating income in order to analyze each segment’s results of operations. This new metric consists of operating income adjusted for amortization of acquisition related intangibles and corporate administrative and other costs. All periods presented have been adjusted to reflect this new measure. Depreciation

and amortization for the segments changed as a result of this new metric removing amortization

associated with intangible assets from the total for the segments.

In early 2013, TSYS embarked on two corporate-wide initiatives that impact more than one operating segment. One initiative is a multi-year, multi-phase initiative that consists of enhancing TSYS’ issuing processing platforms. The other is an innovation initiative focused on enhancing existing product and service offerings through several new product concepts and ideas on how to change existing processes. The costs associated with these two new initiatives are not allocated to the operating segments, but are combined, along with the existing corporate administration, in a grouping titled “Corporate Administration and Other.” This was a change the CODM requested and was used to evaluate performance and assess resources starting in the first quarter of 2013. The following operating results by segment comparison reflects the change in segment reporting from these initiatives, including the 2012 and 2011 results.

The Company believes the terms and conditions of transactions between the segments are comparable to those which could have been obtained in transactions with unaffiliated parties. TSYS’ operating segments share certain resources, such as information technology support, that TSYS allocates asymmetrically.

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Years Ended December 31,
(in thousands)
Operating Segments	2013			2012			2011
Revenues before reimbursable items
North America Services	$	860,645			826,750			809,069
International Services		389,532			396,149			380,129
Merchant Services		446,277			409,698			373,159
NetSpend		207,851			—			—
Intersegment revenues		(12,550	)		(14,106	)		(21,659	)
Revenues before reimbursable items from external customers	$	1,891,755			1,618,491			1,540,698
Total revenues
North America Services	$	1,000,072			965,393			954,550
International Services		409,597			413,467			394,831
Merchant Services		533,049			512,580			487,997
NetSpend		207,851			—			—
Intersegment revenues		(18,216	)		(20,468	)		(28,412	)
Revenues from external customers	$	2,132,353			1,870,972			1,808,966
Depreciation and amortization
North America Services	$	74,479			74,673			77,446
International Services		47,978			55,033			49,722
Merchant Services		12,034			12,083			15,416
NetSpend		3,121			—			—
Segment depreciation and amortization		137,612			141,789			142,584
Acquisition intangible amortization		65,893			26,264			23,583
Corporate Administration and Other		1,846			2,557			2,998
Total depreciation and amortization	$	205,351			170,610			169,165
Adjusted segment operating income
North America Services	$	314,577			289,493			254,552
International Services		45,911			29,427			43,574
Merchant Services		154,047			156,283			133,695
NetSpend		59,717			—			—
Total adjusted segment operating income		574,252			475,203			431,821
Acquisition intangible amortization		(65,893	)		(26,264	)		(23,583	)
NetSpend merger and acquisition operating expenses (non-recurring)		(14,220	)		—			—
Corporate Administration and Other		(107,892	)		(91,287	)		(85,782	)
Operating income	$	386,247			357,652			322,456
As of December 31,	2013			2012
Total assets
North America Services	$	3,240,298			1,744,877
International Services		417,379			445,642
Merchant Services		676,592			703,725
NetSpend		1,596,150			—
Intersegment assets		(2,243,851	)		(870,406	)
Total assets	$	3,686,568			2,023,838

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GEOGRAPHIC AREA DATA:    The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas:

	As of December 31,
(in millions)	2013		2012
United States	$	207.4		191.7
Europe		46.3		51.3
Japan		5.3		9.5
Other		6.2		7.9
Totals	$	265.2		260.4

The following geographic area data represents revenues for the years ended December 31 based on the domicile of the Company’s customers:

(in millions)	2013		%		2012		%		2011		%
United States	$	1,453.3		68.2	$	1,219.9		65.2	$	1,227.8		67.9
Europe		294.6		13.8		293.0		15.7		283.5		15.7
Canada		243.2		11.4		217.5		11.6		171.5		9.5
Japan		68.8		3.2		78.6		4.2		76.3		4.2
Mexico		16.5		0.8		11.7		0.6		7.8		0.4
Other		56.0		2.6		50.3		2.7		42.1		2.3
Totals	$	2,132.4		100.0	$	1,871.0		100.0	$	1,809.0		100.0

GEOGRAPHIC AREA REVENUE BY OPERATING SEGMENT:    The following table reconciles segment revenue to revenues by geography for the years ended December 31:

	North America Services						International Services						Merchant Services						NetSpend
(in millions)	2013		2012		2011		2013		2012		2011		2013		2012		2011		2013		2012		2011
United States	$	711.4		705.5		741.5	$	—		—		—	$	533.9		514.4		486.3	$	207.9				—
Europe		0.8		0.8		0.7		293.8		292.2		282.8		—		—		—		—		—		—
Canada		243.0		217.3		171.1		—		—		—		0.2		0.2		0.4		—		—		—
Japan		—		—		—		68.8		78.6		76.3		—		—		—		—		—		—
Mexico		16.5		11.7		7.8		—		—		—		—		—		—		—		—		—
Other		14.5		10.5		9.6		41.0		39.3		31.8		0.6		0.5		0.7		—		—		—
Totals	$	986.2		945.8		930.7	$	403.6		410.1		390.9	$	534.7		515.1		487.4	$	207.9		—		—

MAJOR CUSTOMER:    For the years ended December 31, 2013 and 2012, the Company had no major customers. For the year ended December 31, 2011, the Company had one major customer which accounted for approximately $210.9 million, or 11.7% of total revenues. Revenues from the major customer for the year ended December 31, 2011 are primarily attributable to the North America Services segment and the Merchant Services segment.

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NOTE 22 Supplemental Cash Flow Information

Nonvested Share Awards

The Company has issued shares of TSYS common stock to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued in the form of nonvested stock bonus awards for services to be provided in the future by such officers and employees. Beginning in 2011, the grants to the Board of Directors were fully vested on the date of grant. Refer to Note 18 for more information on nonvested share awards.

Equipment and Software Acquired Under Capital Lease Obligations

The Company acquired computer equipment and software under capital lease in the amount of $14.8 million, $5.3 million and $8.1 million in 2013, 2012 and 2011, respectively.

NOTE 23 Acquisitions

2013

On July 1, 2013, TSYS acquired all the outstanding stock of NetSpend, which previously operated as a publicly traded company and is a leading provider of GPR prepaid debit and payroll cards and related financial services to underbanked consumers in the U.S. The acquisition complements the Company’s existing presence in the prepaid processing space. The results of the newly acquired business are being reported by TSYS as a new operating segment titled NetSpend.

Under the terms of the Merger Agreement, TSYS acquired 100 percent ownership of NetSpend for approximately $1.4 billion, including $1.2 billion of cash to shareholders, $70.7 million of cash for payment to holders of vested stock options and awards, $58.3 million of cash for repayment of NetSpend’s revolving credit facility and $15.6 million in replacement stock options and awards. NetSpend shareholders received $16.00 in cash for each share of NetSpend common stock. There were 1.6 million NetSpend shares held by five shareholders who have asserted appraisal (or dissenters’) rights with respect to their NetSpend shares, for a preliminary value of $25.7 million at $16.00 per share that were not funded at the closing of the acquisition.

Under the terms of the Merger Agreement, the Company replaced unvested share-based awards for certain current employees of NetSpend. The following table provides a list of all replacement awards and the estimated fair value of those awards issued in conjunction with the acquisition of NetSpend:

	Number of Shares and Options Issued		Fair Value (in millions)
Time-based restricted stock		870,361	$	21.5
Non-qualified stock options		530,696		8.4
Incentive stock options		529,452		5.3
Performance-based restricted stock		87,356		2.2
Total		2,017,865	$	37.4

The portion of the fair value of the replacement awards related to services provided prior to the business combination was included in the total purchase price. The portion of the fair value associated with future service is recognized as expense over the future service period, which varies by award. The Company determined that $15.6 million ($11.1 million net of tax) of the replacement awards was related to services rendered prior to the business combination.

The goodwill amount of $1.0 billion arising from the acquisition consists largely of expansion of customer base, differentiation in market opportunity and economies of scale expected from combining the operations of TSYS and NetSpend. All of the goodwill was assigned to TSYS’ new NetSpend segment. The goodwill recognized is not expected to be deductible for income tax purposes.

The following table summarizes the consideration paid for NetSpend and the preliminary recognized amounts of the identifiable assets acquired and liabilities assumed on July 1, 2013 (the acquisition date). These amounts will remain preliminary until the valuation analysis has been finalized. The measurement period during which changes in assets, liabilities, equity interests, or items of consideration are subject to adjustment ends one year following

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the acquisition date. The Company continues to evaluate consideration paid, deferred taxes, goodwill and financial liabilities.

(in thousands)
Consideration
Cash	$	1,355,270
Equity instruments		15,557
Dissenting shareholder liability*		25,723
Fair value of total consideration transferred	$	1,396,550
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash	$	40,610
Accounts receivable		11,335
Property equipment and software		11,657
Identifiable intangible assets		480,086
Deferred tax asset		10,165
Other assets		36,660
Deferred tax liability		(155,945	)
Financial liabilities		(62,452	)
Total identifiable net assets		372,116
Goodwill		1,024,434
	$	1,396,550

* Represents 1.6 million NetSpend shares held by dissenting shareholders

Identifiable intangible assets acquired in the NetSpend acquisition include channel relationships, current technology, a prospect database, the NetSpend trade name and non-compete agreements.

The identifiable intangible assets had no significant estimated residual value. These intangible assets are being amortized over their estimated useful lives of five to eight years based on the pattern of expected future economic benefit, which approximates a straight-line basis over the useful lives of the assets.

The fair value of the acquired identifiable intangible assets of $480.1 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. The fair values and useful lives of the identified intangible assets were primarily determined using forecasted cash flows, which included estimates for certain assumptions such as revenues, expenses, attrition rates and royalty rates. The estimated fair value of identifiable intangible assets acquired in the acquisitions and the related estimated weighted average useful lives are as follows:

(in thousands)	Fair Value		Weighted Average Useful Life (in years)
Channel relationships	$	317,000		8.0
Covenants-not-to-compete		11,500		6.0
Current technology		78,711		7.0
Database		28,000		5.0
Trade name		44,000		5.0
Favorable lease		875		4.9
Total acquired identifiable intangible assets	$	480,086		7.3

The fair value measurement of the identifiable intangible assets represents Level 2 and Level 3 measurements as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 11%, (c) a pre-tax royalty rate range of 2.5-7.0%, (d) attrition rates of 5%-40%, (e) an effective tax rate of 40%, and (f) a terminal value based on a long-term sustainable growth rate of 3%.

In connection with the acquisition, TSYS incurred $14.2 million in acquisition-related costs primarily related to professional legal, finance, and accounting costs. These costs were expensed as incurred and are included in merger and acquisition expenses on the income statement for the year ended December 31, 2013.

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Pro Forma Results of Operations

The amounts of NetSpend revenue and earnings included in TSYS’ consolidated income statement for the years ended December 31, 2013 and 2012, and the pro forma revenue and earnings of the combined entity had the acquisition date been January 1, 2012 are:

	Actual				Supplemental pro forma
	Years Ended December 31,				Years Ended December 31,
(in thousands, except per share data)	2013		2012		2013		2012
Revenue	$	2,132,353		1,870,972		2,354,396		2,222,069
Net income attributable to TSYS common shareholders	$	244,750		244,280		239,775		193,255
Basic EPS attributable to TSYS common shareholders	$	1.30		1.30		1.27		1.03
Diluted EPS attributable to TSYS common shareholders	$	1.29		1.29		1.26		1.03

The unaudited pro forma financial information presented above does not purport to represent what the actual results of operations would have been if the acquisition of NetSpend’s operations had occurred prior to January 1, 2012, nor is it indicative of the future operating results of TSYS. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, including, but not limited to, anticipated cost savings from operating synergies.

The unaudited pro forma financial information presented in the table above has been adjusted to give effect to adjustments that are (1) directly related to the business combination; (2) factually supportable; and (3) expected to have a continuing impact. These adjustments include, but are not limited to, the application of accounting policies; and depreciation and amortization related to fair value adjustments to property, plant and equipment and intangible assets.

The pro forma adjustments do not reflect the following material items that result directly from the acquisition and which impacted our statement of operations following the acquisition:

• Acquisition and related financing transactions costs relating to fees to investment bankers, attorneys, accountants, and other professional advisors, and other transaction-related costs that were not capitalized as deferred financing costs; and

• The effect of anticipated cost savings or operating efficiencies expected to be realized and related restructuring charges such as technology and infrastructure integration expenses, and other costs related to the integration of NetSpend into TSYS.

2012

On December 26, 2012, TSYS completed its acquisition of ProPay for $123.7 million. ProPay previously operated as a privately-held company, and offers simple, secure and affordable payment solutions for organizations ranging from small, home based entrepreneurs to multi-billion dollar enterprises. The results of operations for ProPay are immaterial and therefore not included in the Company’s results for the year ended December 31, 2012. The goodwill of $93.5 million recorded arises largely from synergies and economies of scale expected to be realized from combining the operations of TSYS and ProPay. None of the goodwill is tax deductible. ProPay is included as part of the Merchant Services segment.

On August 8, 2012, TSYS completed its acquisition of 60% of CPAY, a privately held direct merchant acquirer, for $66 million in cash. CPAY provides merchant services to small- to medium-sized merchants through an Independent Sales Agent (ISA) model, with a focus on merchants in the restaurant, personal services and retail sectors. The acquisition of CPAY expands the Company’s presence in the merchant acquiring industry and enhances the Company’s distribution model with CPAY’s strong sales agent channel. The results of operations for CPAY have been included in the Company’s results beginning August 8, 2012, and are included in the Merchant Services segment. The goodwill of $68.6 million recorded arises largely from synergies and economies of scale expected to be realized from

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combining the operations of TSYS and CPAY. All of the goodwill is tax deductible.

The following table summarizes the consideration paid for acquisitions and the preliminary recognized amounts of identifiable assets acquired and liabilities assumed during the year ended December 31, 2012.

(in thousands)
Cash and restricted cash	$	3,003
Accounts receivable		4,092
Other assets		12,522
Identifiable intangible assets		76,600
Other liabilities		(30,558	)
Noncontrolling interest in acquired entity		(38,000	)
Goodwill		162,090
Total consideration	$	189,749

The fair value of accounts receivable, accounts payable, accrued compensation, and other liabilities approximates the carrying amount of those assets and liabilities at the acquisition date. The fair value of accounts receivable due under agreements with customers is $4.1 million. The gross amount due under the agreements is $4.8 million, of which approximately $688,000 is expected to be uncollectible.

Of the $123.7 million in consideration paid for ProPay, $12.5 million has been placed in escrow for a period of 18 months to secure certain claims that may be brought against the escrowed consideration by TSYS pursuant to the merger agreement. Consideration is contingent and may be returned to the Company pursuant to indemnification commitments made by the shareholders which formerly owned ProPay related to a breach of the representations and warranties made in the merger agreement. Such indemnification commitments are recognized as a possible receivable and measured at fair value. Based upon the probability of various possible outcomes related to the indemnification commitments, TSYS has determined that the fair value of any receivable asset would be immaterial. The maximum amount of contingent consideration returnable to the Company related to certain indemnification commitments made by the Seller is $12.5 million. The maximum amount of contingent consideration returnable to the Company related to fundamental representations and warranties made by the Seller is unlimited.

Of the $66 million in consideration paid for CPAY, $3.3 million has been placed in escrow for a period of

21 months to secure certain claims that may be brought against the escrowed consideration by TSYS pursuant to the Investment Agreement. Consideration is contingent and may be returned to the Company pursuant to indemnification commitments made by the company which formerly owned 100% of Central Payment (Seller) related to, among other things, a breach of the representations and warranties made in the Investment Agreement, and losses arising out of any of the Excluded Liabilities as defined in the Investment Agreement. Such indemnification commitments are recognized as a possible asset receivable and measured at fair value. Based upon the probability of various possible outcomes related to the indemnification commitments, TSYS has determined that the fair value of any receivable asset would be immaterial. The maximum amount of contingent consideration returnable to the Company related to certain indemnification commitments made by the Seller is $9.9 million. The maximum amount of contingent consideration returnable to the Company related to fundamental representations and warranties made by the Seller is unlimited.

Identifiable intangible assets acquired in the acquisitions had no significant estimated residual value. These intangible assets are being amortized over their estimated useful lives of 2 to 10 years based on the pattern of expected future economic benefit, which approximates a straight-line basis over the useful lives of the assets. The fair value of the acquired identifiable intangible assets of $76.6 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. The fair values and useful lives of the identified intangible assets were primarily determined using forecasted cash flows, which included estimates for certain assumptions such as revenues, expenses, attrition rates, and royalty rates. The estimated fair value of identifiable intangible assets acquired in the acquisitions and the related estimated weighted average useful lives are as follows:

	Fair Value (in millions)		Weighted Average Useful Lives (in years)
Customer relationships	$	59.5		8.6
Covenants-not-to-compete		2.9		2.8
Current technology		13.0		5
Trade name		1.2		2
Total acquired identifiable intangible assets	$	76.6		7.7

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This fair value measurement is based on significant inputs that are both observable (Level 2) and non-observable (Level 3) in the market as defined in ASC 820. Key assumptions in the ProPay acquisition include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 14.0% for the overall Company and a discount rate of 14.5% for the intangible assets, (c) a pre-tax royalty rate of 1.0% for trade names and technology (d) an attrition rate of 3.0%- 5.0%, (e) an effective tax rate of 39.0%, and (f) a terminal value based on a long-term sustainable growth rate of 3.0%.

Key assumptions in the CPAY acquisition include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 19.0% for the overall company and a discount rate of 19.5% for the intangible assets, (c) a pre-tax royalty rate of 1.0% for trade names and technology (d) an attrition rate of 25.0%, (e) an effective tax rate of 39.0%, and (f) a terminal value based on a long-term sustainable growth rate of 3.0%.

In connection with these acquisitions, TSYS incurred $1.3 million in acquisition-related costs primarily related to professional legal, finance, and accounting costs. These costs were expensed as incurred and are included in selling, general, and administrative expenses in the income statement for the year ended December 31, 2012.

Other

On February 1, 2012, TSYS acquired contract-based intangible assets in its Merchant Services segment for $1.7 million. These intangible assets are being amortized on a straight-line basis over their estimated useful lives of five years which approximates their usage.

Redeemable Noncontrolling Interest

The fair value of the noncontrolling interest in CPAY, owned by a private company, was based on the actual purchase price paid for the controlling interest in CPAY. Next adjustments were made for lack of control and lack of marketability that market participants would consider when estimating the fair value of the noncontrolling, non-marketable interest in CPAY.

In connection with the acquisition of CPAY, the Company is party to call and put arrangements with respect to the membership units that represent the remaining noncontrolling interest of CPAY. The call

arrangement is exercisable by TSYS and the put arrangement is exercisable by the Seller. The put arrangement is outside the control of the Company by requiring the Company to purchase the Seller’s entire equity interest in CPAY at a put price at fair market value. The put arrangement is recorded on the balance sheet and is classified as redeemable noncontrolling interest outside of permanent equity.

The call and put arrangements for CPAY, representing 40% of its total outstanding equity interests, may be exercised at the discretion of TSYS or the Seller on the second anniversary of the closing and upon the recurrence of certain other specified events.

The put option is not currently redeemable, but redemption is considered probable based upon the passage of time of the second anniversary date. As such, the Company has adopted the accounting policy to accrete changes in the redemption value over the period from the date of issuance to the earliest redemption date, which the Company believes to be one year. If the put option was redeemable at December 31, 2013, the redemption value was estimated to be approximately $39.7 million. The Company did not accrete any changes to the redemption value as the balance as of December 31, 2013 exceeded the accretion fair value amount.

In February 2014, with cash on hand, the Company purchased an additional 15% equity interest in CPAY, reducing its redeemable noncontrolling interest in CPAY to 25%.

2011

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet, an Atlanta-based merchant acquirer, for $42 million in cash. TermNet provides merchant services to qualified merchants serving a diverse merchant base of over 18,000 merchants. The acquisition of TermNet expands the Company’s presence in the merchant acquiring industry. The results of operations for TermNet have been included in the Company’s results beginning May 2, 2011, and are included in the Merchant Services segment. The goodwill of $28.9 million recorded arises largely from synergies and economies of scale expected to be realized from combining the operations of TSYS and TermNet. Goodwill recognized in the acquisition of TermNet is not deductible for income tax purposes.

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The following table summarizes the consideration paid for TermNet and the recognized amounts of identifiable assets acquired and liabilities assumed effective May 2, 2011:

(in thousands)
Cash and restricted cash	$	2,691
Accounts receivable		10,253
Other assets		1,516
Identifiable intangible assets		11,740
Goodwill		28,918
Accounts payable		(5,578	)
Accrued compensation		(2,683	)
Deferred income tax liability		(4,506	)
Other liabilities		(351	)
Total consideration	$	42,000

The fair value of accounts receivable, accounts payable, accrued compensation, and other liabilities approximates the carrying amount of those assets and liabilities at the acquisition date. The fair value of accounts receivable due under agreements with customers is $10.3 million. The gross amount due under the agreements is $10.4 million, of which approximately $100,000 is expected to be uncollectible. Of the $42 million in consideration paid for TermNet, $8.4 million was placed in escrow for a period of 18 months to secure certain claims brought against the escrowed consideration by TSYS pursuant to the merger agreement. The maximum amount of contingent consideration returnable to the Company related to fundamental representations and warranties made by TermNet is unlimited.

Identifiable intangible assets acquired in the TermNet acquisition include customer relationships, channel relationships, and non-compete agreements. The identifiable intangible assets had no significant estimated residual value. These intangible assets are being amortized over their estimated useful lives of 2 to 10 years based on the pattern of expected future economic benefit, which approximates a straight-line basis over the useful lives of the assets. The fair value of the acquired identifiable intangible assets of $11.7 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. The fair values and useful lives of the identified intangible assets were primarily determined using forecasted cash flows, which included estimates for certain assumptions such as revenues, expenses, attrition rates, and royalty rates. The estimated fair value of identifiable intangible assets acquired in the acquisition of

TermNet and the related estimated weighted average useful lives are as follows:

	Fair Value (in millions)		Weighted Average Useful Lives (in years)
Customer relationships	$	10.0		7.0
Channel relationships		1.6		10.0
Covenants-not-to-compete		0.1		2.0
Total acquired identifiable intangible assets	$	11.7		7.3

The fair value measurement of the identifiable intangible assets is based on significant inputs that are not observable in the market and therefore, represents a Level 3 measurement as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 14%, (c) a pre-tax royalty rate range of 3-10%, (d) an attrition rate of 20%, (e) an effective tax rate of 36%, and (f) a terminal value based on a long-term sustainable growth rate of 3%.

In connection with the TermNet acquisition, TSYS incurred $192,000 in acquisition-related costs primarily related to professional legal, finance, and accounting costs. These costs were expensed as incurred and are included in selling, general, and administrative expenses in the income statement for 2011.

Other

On October 1, 2011, TSYS acquired contract-based intangible assets in its Merchant Services segment for $2.6 million. These intangible assets are being amortized on a straight-line basis over their estimated useful lives of five years.

In May 2011, TSYS made a payment of $6.0 million of contingent merger consideration in connection with the purchase of Infonox, which was accounted for under ASC 805. The payment of the contingent merger consideration by TSYS was recorded as goodwill and had no impact on results of operations.

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Pro forma Results of Operations

The pro forma revenue and earnings of TSYS’ acquisitions other than NetSpend are not material to the consolidated financial statements.

NOTE 24 Collaborative Arrangement

TSYS has a 45% ownership interest in an enterprise jointly owned with two other entities which operates aircraft for the owners’ internal use. The arrangement

allows each entity access to the aircraft and each entity pays for its usage of the aircraft. Each quarter, the net operating results of the enterprise are shared among the owners based on their respective ownership percentage.

TSYS records its usage of the aircraft and its share of net operating results of the enterprise in selling, general and administrative expenses.

NOTE 25 Earnings Per Share

The following table illustrates basic and diluted EPS under the guidance of ASC 260:

	December 31, 2013					December 31, 2012					December 31, 2011
(in thousands, except per share data)	Common Stock			Participating Securities		Common Stock			Participating Securities		Common Stock			Participating Securities
Basic EPS:
Net income	$	244,750					244,280					220,559
Less income allocated to nonvested awards		(1,595	)		1,595		(800	)		800		(805	)		805
Net income allocated to common stock for EPS calculation(a)	$	243,155			1,595		243,480			800		219,754			805
Average common shares outstanding(b)		187,145			1,246		187,403			627		191,239			707
Basic EPS(a)/(b)	$	1.30			1.28		1.30			1.28		1.15			1.14
Diluted EPS:
Net income	$	244,750					244,280					220,559
Less income allocated to nonvested awards		(1,585	)		1,585		(796	)		796		(804	)		804
Net income allocated to common stock for EPS calculation(c)	$	243,165			1,585		243,484			796		219,755			804
Average common shares outstanding		187,145			1,246		187,403			627		191,239			707
Increase due to assumed issuance of shares related to common equivalent shares outstanding		1,648					1,262					345
Average common and common equivalent shares outstanding(d)		188,793			1,246		188,665			627		191,584			707
Diluted EPS(c)/(d)	$	1.29			1.27		1.29			1.27		1.15			1.14

The diluted EPS calculation excludes stock options and nonvested awards that are convertible into 1.9 million, 2.9 million and 3.6 million common shares for the years ended December 31, 2013, 2012 and 2011, respectively, because their inclusion would have been anti-dilutive.

NOTE 26 Subsequent Events

On February 11, 2014, with cash on hand, the Company acquired an additional 15% equity interest in CPAY from CPC Holding Company, LLC, a

California limited liability company. This purchase reduced the remaining redeemable noncontrolling interest in CPAY to 25% of its total outstanding equity.

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Report of Independent Registered Public Accounting Firm

The Board of Directors

Total System Services, Inc.:

We have audited the accompanying consolidated balance sheets of Total System Services, Inc. and subsidiaries (the Company) as of December 31, 2013 and 2012, and the related consolidated statements of income, comprehensive income, cash flows, and changes in equity for each of the years in the three-year period ended December 31, 2013. We also have audited the Company’s internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control — Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Total System Services, Inc. and subsidiaries as of December 31, 2013 and 2012, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2013, in conformity with U.S. generally accepted accounting principles. Also in our opinion, Total System Services, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Atlanta, Georgia

February 25, 2014

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Management’s Report on Internal Control Over Financial Reporting

The management of Total System Services, Inc. (the Company) is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. The Company maintains accounting and internal control systems which are intended to provide reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, transactions are executed in accordance with management’s authorization and accounting records are reliable for preparing financial statements in accordance with accounting principles generally accepted in the United States.

Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, risk.

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2013. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission in Internal Control — Integrated Framework (1992).

Based on our assessment management believes that, as of December 31, 2013, the Company’s internal control over financial reporting is effective based on those criteria.

KPMG LLP, the independent registered public accounting firm who audited the Company’s consolidated financial statements, has issued an attestation report on the effectiveness of internal control over financial reporting as of December 31, 2013 that appears on the preceding page.

Philip W. Tomlinson Chairman of the Board & Chief Executive Officer	James B. Lipham Senior Executive Vice President & Chief Financial Officer

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Quarterly Financial Data (Unaudited), Stock Price, Dividend Information

TSYS’ common stock trades on the New York Stock Exchange (NYSE) under the symbol “TSS.” Price and volume information appears under the abbreviation “TotlSysSvc” in NYSE daily stock quotation listings. As of February 21, 2014, there were 23,253 holders of record of TSYS common stock, some of whom are holders in nominee name for the benefit of different shareholders.

The 2013 fourth quarter dividend of $0.10 per share was declared on December 2, 2013, and was paid January 2, 2014, to shareholders of record on December 19, 2013. The 2012 fourth quarter dividend of $0.10 per share was declared on December 3, 2012, and was paid December 26, 2012, to shareholders of record on December 17, 2012. Total dividends declared in 2013 and in 2012 amounted to $75.8 million and $75.9 million, respectively. It is the present intention of the Board of Directors of TSYS to continue to pay cash dividends on its common stock.

Presented here is a summary of the unaudited quarterly financial data for the years ended December 31, 2013 and 2012.

(in thousands, except per share data)		First Quarter		Second Quarter		Third Quarter		Fourth Quarter
2013	Revenues	$	464,996		478,443		588,074		600,840
	Operating income		74,903		95,314		105,628		110,402
	Net income attributable to TSYS common shareholders		57,029		57,716		64,350		65,655
	Basic earnings per share attributable to TSYS common shareholders		0.31		0.31		0.34		0.35
	Diluted earnings per share attributable to TSYS common shareholders		0.30		0.31		0.34		0.34
	Cash dividends declared		0.10		0.10		0.10		0.10
	Stock prices:
	High		24.78		24.94		29.93		33.30
	Low		21.97		22.62		24.65		28.49
	Close		24.78		24.48		29.42		33.28
2012	Revenues	$	461,162		462,651		468,059		479,100
	Operating income		84,831		92,096		90,893		89,831
	Net income attributable to TSYS common shareholders		56,395		66,710		60,312		60,862
	Basic earnings per share attributable to TSYS common shareholders		0.30		0.35		0.32		0.33
	Diluted earnings per share attributable to TSYS common shareholders		0.30		0.35		0.32		0.32
	Cash dividends declared		0.10		0.10		0.10		0.10
	Stock prices:
	High		23.18		23.93		24.39		24.19
	Low		19.40		21.88		22.64		21.23
	Close		23.07		23.93		23.70		21.42

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STOCK PERFORMANCE GRAPH

The following graph compares the yearly percentage change in cumulative shareholder return on TSYS stock with the cumulative total return of the Standard & Poor’s 500 Index and the Standard & Poor’s Systems Software Index for the last five fiscal years (assuming a $100 investment on December 31, 2008 and reinvestment of all dividends).

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN

Among TSYS, the S&P 500 Index, and the S&P Systems Software Index

	2008		2009		2010		2011		2012		2013
TSYS	$	100.00	$	125.72	$	114.08	$	147.56	$	164.40	$	259.30
S&P 500	$	100.00	$	126.46	$	145.51	$	148.59	$	172.37	$	228.19
S&P SS	$	100.00	$	151.07	$	158.32	$	142.57	$	164.28	$	218.32

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EX-21.1

Exhibit 21.1

SUBSIDIARIES OF TOTAL SYSTEM SERVICES, INC.

Ownership Percentage			Name					Place of Incorporation
	100	%		Columbus Depot Equipment Company				Georgia
				99	%	TSYS Merchant Solutions, LLC (1)		Delaware
	100	%		TSYS Canada, Inc.				Georgia
	100	%		TSYS Managed Services Canada, Inc.				Ontario
	100	%		TSYS U.S. Holdings, Inc.				Georgia
				100	%	ProPay, Inc.		Utah
						100%      ProPay Financial Solutions Canada, Inc.		Utah
						100%      ProPay Global, Ltd.		England and Wales
				75	%	Central Payment Co., LLC		Delaware
						100%      Central Payment Deployment, Inc.		Delaware
	100	%		Columbus Productions, Inc.				Georgia
	100	%		TSYS Japan Co., Ltd.				Japan
				54.08	%	GP Network Corporation		Japan
	100	%		TSYS Servicos de Transacoes Eletronicas Ltda (2)				Brazil
	100	%		Total System Services Holding Europe LP (3)				England
				100	%	Total System Services Processing Europe Limited		England
				100	%	TSYS Europe (Netherlands) B.V.		Netherlands
				100	%	TSYS Europe (Spain) S.L.		Spain
				100	%	TSYS Europe (Deutschland) GmBH		Germany
				100	%	TSYS Europe (Italia) S.r.l		Italy
				100	%	TSYS Card Tech Limited		England
				100	%	TSYS Card Tech Services Limited		Cyprus
						100%	TSYS Card Tech Services (Malaysia) Limited	Malaysia
						100%	TSYS Card Tech Services India Private Limited (4)	India
						100%	TSYS – Rus L.L.C.	Russia
				55	%	TSYS Managed Services EMEA Limited		England
						100%	TSYS Managed Services EMEA B.V.	Netherlands
						100%	TSYS Managed Services EMEA (Netherlands) B.V.	Netherlands
	100	%		TSYS Acquiring Solutions, L.L.C.				Delaware
				100	%	Infonox Software Private Limited (2)		India
	100	%		NetSpend Holdings, Inc.				Delaware
				100	%	NetSpend Corporation		Delaware
				100	%	NetSpend Payment Services, Inc.		Delaware
				100	%	Skylight Acquisition I, Inc.		Delaware
						100%	Skylight Financial, Inc.	Delaware
	49	%		Total System Services de Mexico, S.A. de C.V.				Mexico
	49	%		TSYS Servicios Corporativos, S.A. de C.V.				Mexico
	44.56	%		China Unionpay Data Services Company Limited				China

(1) 1% is owned by TSYS U.S. Holdings, Inc.

(2) Less than .1% is owned by Columbus Depot Equipment Company.

(3) 1% is owned by Columbus Depot Equipment Company.

(4) Less than .1% is owned by TSYS Card Tech Services (Malaysia) Limited.

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Total System Services, Inc.:

We consent to the incorporation by reference in the registration statements (No. 333-25401, No. 333-41775, No. 333-104142, No. 333-142791, No. 333-148449, No. 333-181790, and No. 333-189733) on Form S-8 and the registration statements (No. 333-177897 and No. 333-188453) on Form S-3 of Total System Services, Inc. of our reports dated February 25, 2014, with respect to the consolidated balance sheets of Total System Services, Inc. as of December 31, 2013 and 2012, and the related consolidated statements of income, comprehensive income, cash flows, and changes in equity for each of the years in the three-year period ended December 31, 2013, and the related financial statement schedules, and the effectiveness of internal control over financial reporting as of December 31, 2013, which report appears in the December 31, 2013 annual report on Form 10-K of Total System Services, Inc.

/s/ KPMG LLP

Atlanta, Georgia

February 25, 2014

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Philip W. Tomlinson, certify that:

1. I have reviewed this annual report on Form 10-K of Total System Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 25, 2014	/s/ Philip W. Tomlinson
	Philip W. Tomlinson
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, James B. Lipham, certify that:

1. I have reviewed this annual report on Form 10-K of Total System Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a- 15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 25, 2014	/s/ James B. Lipham
	James B. Lipham
	Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION OF PERIODIC REPORT

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, Philip W. Tomlinson, the Chief Executive Officer of Total System Services, Inc. (the “Company”), and James B. Lipham, the Chief Financial Officer of the Company, hereby certify that, to the best of his knowledge:

(1) The Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (the “Report”) fully complies with the requirements of section 13(a) or section 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

February 25, 2014	/s/ Philip W. Tomlinson
	Philip W. Tomlinson
	Chief Executive Officer
February 25, 2014	/s/ James B. Lipham
	James B. Lipham
	Chief Financial Officer

This certification “accompanies” the Form 10-K to which it relates, is not deemed filed with the SEC and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-K, irrespective of any general incorporation language contained in such filing.)

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Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2013

Prepaid Expenses and Other Current Assets

Significant components of prepaid expenses and other current assets as of December 31 are summarized as follows:

(in thousands)	2013		2012
Prepaid expenses	$	42,341		24,615
Supplies inventory		12,927		8,881
Other		41,427		36,710
Total	$	96,695		70,206

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Summary of Stock Option Activity and Changes during Year (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Options:
Granted	1,939,796		818,090		716,508
Weighted Average Exercise Price
Granted	$ 17.42		$ 22.95		$ 17.61
Outstanding at end of year	$ 20.96
Weighted average fair value of options granted during the year	$ 9.48		$ 5.27		$ 5.78
Stock Options
Options:
Outstanding at beginning of year	6,065,000		6,082,000		8,810,000
Granted	1,940,000	[1]	818,000	[1]	717,000	[1]
Exercised	(2,177,000)		(619,000)		(597,000)
Forfeited/canceled	(76,000)		(216,000)		(2,848,000)
Outstanding at end of year	5,752,000		6,065,000		6,082,000
Options exercisable at year-end	3,232,000		3,235,000		3,122,000
Weighted Average Exercise Price
Outstanding at beginning of year	$ 21.27		$ 20.61		$ 23.40
Granted	$ 17.42	[1]	$ 22.95	[1]	$ 17.61	[1]
Exercised	$ 18.75		$ 16.15		$ 13.51
Forfeited/canceled	$ 16.78		$ 23.73		$ 29.96
Outstanding at end of year	$ 20.96		$ 21.27		$ 20.61
Options exercisable at year-end	$ 23.02		$ 24.12		$ 25.00
Weighted average fair value of options granted during the year	$ 9.48		$ 5.27		$ 5.78
Average remaining contractual life (in years)	6 years 6 months
Aggregate intrinsic value (in thousands)	$ 70,851
Average remaining contractual life (in years)	4 years 6 months
Aggregate intrinsic value (in thousands)	$ 33,143

[1] Includes the issuance of approximately 1.1 million stock option replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $13.7 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2013

Awards and Estimated Fair Value of Awards Issued in Acquisition

The following table provides a list of all replacement awards and the estimated fair value of those awards issued in conjunction with the acquisition of NetSpend:

	Number of Shares and Options Issued		Fair Value (in millions)
Time-based restricted stock		870,361	$	21.5
Non-qualified stock options		530,696		8.4
Incentive stock options		529,452		5.3
Performance-based restricted stock		87,356		2.2
Total		2,017,865	$	37.4

Pro Forma Revenue and Earnings

The amounts of NetSpend revenue and earnings included in TSYS’ consolidated income statement for the years ended December 31, 2013 and 2012, and the pro forma revenue and earnings of the combined entity had the acquisition date been January 1, 2012 are:

	Actual				Supplemental pro forma
	Years Ended December 31,				Years Ended December 31,
(in thousands, except per share data)	2013		2012		2013		2012
Revenue	$	2,132,353		1,870,972		2,354,396		2,222,069
Net income attributable to TSYS common shareholders	$	244,750		244,280		239,775		193,255
Basic EPS attributable to TSYS common shareholders	$	1.30		1.30		1.27		1.03
Diluted EPS attributable to TSYS common shareholders	$	1.29		1.29		1.26		1.03

NetSpend Holdings Inc

Amounts of Assets Acquired and Liabilities Assumed Recognized

The Company continues to evaluate consideration paid, deferred taxes, goodwill and financial liabilities.

(in thousands)
Consideration
Cash	$	1,355,270
Equity instruments		15,557
Dissenting shareholder liability*		25,723
Fair value of total consideration transferred	$	1,396,550
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash	$	40,610
Accounts receivable		11,335
Property equipment and software		11,657
Identifiable intangible assets		480,086
Deferred tax asset		10,165
Other assets		36,660
Deferred tax liability		(155,945	)
Financial liabilities		(62,452	)
Total identifiable net assets		372,116
Goodwill		1,024,434
	$	1,396,550

* Represents 1.6 million NetSpend shares held by dissenting shareholders

Estimated Fair Value of Identifiable Intangible Assets Acquired

The estimated fair value of identifiable intangible assets acquired in the acquisitions and the related estimated weighted average useful lives are as follows:

(in thousands)	Fair Value		Weighted Average Useful Life (in years)
Channel relationships	$	317,000		8.0
Covenants-not-to-compete		11,500		6.0
Current technology		78,711		7.0
Database		28,000		5.0
Trade name		44,000		5.0
Favorable lease		875		4.9
Total acquired identifiable intangible assets	$	480,086		7.3

Central Payment Co., LLC and ProPay

Amounts of Assets Acquired and Liabilities Assumed Recognized

The

following table summarizes the consideration paid for acquisitions and the preliminary recognized amounts of identifiable assets acquired and liabilities assumed during the year ended December 31, 2012.

(in thousands)
Cash and restricted cash	$	3,003
Accounts receivable		4,092
Other assets		12,522
Identifiable intangible assets		76,600
Other liabilities		(30,558	)
Noncontrolling interest in acquired entity		(38,000	)
Goodwill		162,090
Total consideration	$	189,749

Estimated Fair Value of Identifiable Intangible Assets Acquired

The estimated fair value of identifiable intangible assets acquired in the acquisitions and the related estimated weighted average useful lives are as follows:

	Fair Value (in millions)		Weighted Average Useful Lives (in years)
Customer relationships	$	59.5		8.6
Covenants-not-to-compete		2.9		2.8
Current technology		13.0		5
Trade name		1.2		2
Total acquired identifiable intangible assets	$	76.6		7.7

TermNet Merchant Services, Inc.

Amounts of Assets Acquired and Liabilities Assumed Recognized

The following table summarizes the consideration paid for TermNet and the recognized amounts of identifiable assets acquired and liabilities assumed effective May 2, 2011:

(in thousands)
Cash and restricted cash	$	2,691
Accounts receivable		10,253
Other assets		1,516
Identifiable intangible assets		11,740
Goodwill		28,918
Accounts payable		(5,578	)
Accrued compensation		(2,683	)
Deferred income tax liability		(4,506	)
Other liabilities		(351	)
Total consideration	$	42,000

Estimated Fair Value of Identifiable Intangible Assets Acquired

The estimated fair value of identifiable intangible assets acquired in the acquisition of TermNet and the related estimated weighted average useful lives are as follows:

	Fair Value (in millions)		Weighted Average Useful Lives (in years)
Customer relationships	$	10.0		7.0
Channel relationships		1.6		10.0
Covenants-not-to-compete		0.1		2.0
Total acquired identifiable intangible assets	$	11.7		7.3

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Contributions Charged to Expense

The Company’s contributions to the plan charged to expense for the years ended December 31 are as follows:

(in thousands)	2013		2012		2011
TSYS Retirement Savings Plan	$	14,506		13,421		15,951

Stock Repurchase Plan

Contributions Charged to Expense

The Company’s contributions to these plans charged to expense for the years ended December 31 are as follows:

(in thousands)	2013		2012		2011
TSYS Stock Purchase Plan	$	1,236		1,140		1,177

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Property and Equipment, Net of Accumulated Depreciation and Amortization, by Geographic Areas (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Property and equipment, net of accumulated depreciation and amortization	$ 265,216	$ 260,389
United States
Segment Reporting Information [Line Items]
Property and equipment, net of accumulated depreciation and amortization	207,400	191,700
Europe
Segment Reporting Information [Line Items]
Property and equipment, net of accumulated depreciation and amortization	46,300	51,300
Japan
Segment Reporting Information [Line Items]
Property and equipment, net of accumulated depreciation and amortization	5,300	9,500
Other
Segment Reporting Information [Line Items]
Property and equipment, net of accumulated depreciation and amortization	$ 6,200	$ 7,900

XML

Summary of Computer Software (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Research And Development [Line Items]
Computer software	$ 923,965	$ 854,256
Accumulated amortization	554,192	627,339
Computer software, net	369,773	226,917
Licensed computer software
Schedule Of Research And Development [Line Items]
Computer software	417,139	461,217
Accumulated amortization	224,915	336,521
Software development costs
Schedule Of Research And Development [Line Items]
Computer software	338,490	303,668
Accumulated amortization	254,423	232,113
Acquisition technology intangibles
Schedule Of Research And Development [Line Items]
Computer software	168,336	89,371
Accumulated amortization	$ 74,854	$ 58,705

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Supplementary Cash Flow Information - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Cash Flow, Supplemental [Line Items]
Equipment and software acquired under capital lease obligations	$ 14.8	$ 5.3	$ 8.1

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2013

Basic and Diluted Earnings Per Share Under Guidance of ASC 260

The following table illustrates basic and diluted EPS under the guidance of ASC 260:

	December 31, 2013					December 31, 2012					December 31, 2011
(in thousands, except per share data)	Common Stock			Participating Securities		Common Stock			Participating Securities		Common Stock			Participating Securities
Basic EPS:
Net income	$	244,750					244,280					220,559
Less income allocated to nonvested awards		(1,595	)		1,595		(800	)		800		(805	)		805
Net income allocated to common stock for EPS calculation(a)	$	243,155			1,595		243,480			800		219,754			805
Average common shares outstanding(b)		187,145			1,246		187,403			627		191,239			707
Basic EPS(a)/(b)	$	1.30			1.28		1.30			1.28		1.15			1.14
Diluted EPS:
Net income	$	244,750					244,280					220,559
Less income allocated to nonvested awards		(1,585	)		1,585		(796	)		796		(804	)		804
Net income allocated to common stock for EPS calculation(c)	$	243,165			1,585		243,484			796		219,755			804
Average common shares outstanding		187,145			1,246		187,403			627		191,239			707
Increase due to assumed issuance of shares related to common equivalent shares outstanding		1,648					1,262					345
Average common and common equivalent shares outstanding(d)		188,793			1,246		188,665			627		191,584			707
Diluted EPS(c)/(d)	$	1.29			1.27		1.29			1.27		1.15			1.14

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Weighted Average Useful Life for Each Component of Contract Acquisition Costs (Detail) (Contract Acquisition Costs)	12 Months Ended
	Dec. 31, 2013
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	11 years 4 months 24 days
Payments for processing rights
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	12 years 9 months 18 days
Conversion costs
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	8 years 3 months 18 days

XML

Share-Based Compensation - Additional Information (Detail) (USD $)	12 Months Ended			1 Months Ended		12 Months Ended	1 Months Ended									12 Months Ended			1 Months Ended	12 Months Ended	0 Months Ended			1 Months Ended	0 Months Ended			12 Months Ended							1 Months Ended			12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Jul. 01, 2013 NetSpend Holdings Inc	Dec. 31, 2013 Performance Share Plan 2012 And 2013	Dec. 31, 2013 Performance Share Plan 2012 And 2013 Maximum	Mar. 31, 2012 Performance Share Plan 2012	Mar. 31, 2011 Performance Share Plan 2012	Mar. 31, 2012 Performance Share Plan 2012 Minimum	Mar. 31, 2011 Performance Share Plan 2012 Minimum	Mar. 31, 2012 Performance Share Plan 2012 Maximum	Mar. 31, 2011 Performance Share Plan 2012 Maximum	Apr. 30, 2013 Performance Share Plan Twenty Thirteen	Apr. 30, 2013 Performance Share Plan Twenty Thirteen Minimum	Apr. 30, 2013 Performance Share Plan Twenty Thirteen Maximum	Dec. 31, 2013 Stock Options Granted Prior 2006 Age	Dec. 31, 2013 Stock Options Granted Prior 2006 Minimum	Dec. 31, 2013 Stock Options Granted Prior 2006 Maximum	Jul. 01, 2013 Unvested Stock Awards Replacement Awards NetSpend Holdings Inc	Dec. 31, 2013 Unvested Restricted Awards	Jul. 18, 2013 Unvested Restricted Awards Retention Shares NetSpend Holdings Inc	Jul. 18, 2013 Unvested Restricted Awards Retention Shares NetSpend Holdings Inc Minimum Certain key Employees	Jul. 18, 2013 Unvested Restricted Awards Retention Shares NetSpend Holdings Inc Maximum Certain key Employees	Jul. 01, 2013 Performance Share Plan Replacement Awards NetSpend Holdings Inc	Jul. 18, 2013 Performance Share Plan 2013 NetSpend Retention Performance Shares NetSpend Holdings Inc	Jul. 18, 2013 Performance Share Plan 2013 NetSpend Retention Performance Shares NetSpend Holdings Inc Minimum	Jul. 18, 2013 Performance Share Plan 2013 NetSpend Retention Performance Shares NetSpend Holdings Inc Maximum	Dec. 31, 2013 Stock Options		Dec. 31, 2012 Stock Options		Dec. 31, 2011 Stock Options		Dec. 31, 2013 Stock Options Maximum	Jul. 01, 2013 Stock Options Replacement Awards NetSpend Holdings Inc	Jul. 01, 2013 Stock Options Replacement Awards NetSpend Holdings Inc Minimum	Jul. 01, 2013 Stock Options Replacement Awards NetSpend Holdings Inc Maximum	Dec. 31, 2013 Stock Options Granted During Or After 2006	Dec. 31, 2013 Stock Options Granted During Or After 2006 Minimum Age	Dec. 31, 2013 Stock Options Granted During Or After 2006 Maximum Age	Dec. 31, 2013 Omnibus Stock Incentive Plan, Twenty Twelve	Dec. 31, 2013 Omnibus Stock Incentive Plan 2007	Dec. 31, 2013 2002 Long Term Incentive Plan	Dec. 31, 2013 Long Term Incentive Plan 2000	Dec. 31, 2013 Stock options granted during 2010 Installment	Dec. 31, 2013 Stock options granted since 2011 Installment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable period of employee stock option																	2 years	3 years																				3 years
Expiration period of employee stock option																10 years																		10 years				10 years							10 years	10 years
Years of age																50																							62	65
Years of service																	15 years																						15 years
Number of equal annual installments of stock options exercisable																																													3	3
Options vesting upon retirement description																																														For employees who retire during the first 18 months of the options term, the options vest on a pro-rata basis based upon the number of months employed during the year of retirement. If the employee retires after the 18-month period, vesting is accelerated upon retirement. When an employee meets the requirements for retirement eligibility after the 18-month period but before the final vesting period, the employee is fully vested in the options at that time. Employees not retirement eligible who terminate employment only received the shares for the full vesting periods completed.
Percentage of fair market value of common stock in exercise price																												100.00%
Aggregate number of shares granted to participants pursuant to awards																																									17,000,000	5,000,000	9,400,000	2,400,000
Share-based compensation	$ 28,933,000	$ 18,621,000	$ 16,477,000
Shares of common stock issued				2,017,865															870,361		212,694			87,356	225,000										1,060,148
Value of awards issued																			21,500,000		5,500,000														13,700,000
Award vesting period																						4 years	2 years													7 months	45 months
Unrecognized compensation cost related to non vested share-based compensation arrangements					$ 13,900,000															$ 30,800,000								$ 6,100,000
Unrecognized compensation cost related to non vested share-based compensation arrangements, remaining weighted average recognition period																				2 years 2 months 12 days								1 year 4 months 24 days
Percentage of performance shares grant expected to vest							200.00%					200.00%	200.00%											100.00%	100.00%
Performance shares grant expected vesting Period									2012	2011	2014	2013		2013	2015											2013	2015
Authorized shares of nonvested stock to key executives							241,095	263,292					237,679
Percentage of performance shares grant vested								153.00%
Unrecognized compensation cost related to nonvested share-based compensation arrangements, recognition period						2015
Average fair value of option grant	$ 9.48	$ 5.27	$ 5.78																									$ 9.48		$ 5.27		$ 5.78			$ 12.93
Exercise price	$ 17.42	$ 22.95	$ 17.61																									$ 17.42	[1]	$ 22.95	[1]	$ 17.61	[1]		$ 11.68
Risk-free interest rate	1.31%	1.69%	2.96%																																1.31%
Expected volatility	26.81%	24.11%	29.98%																																29.22%
Expected term	6 years	7 years 10 months 24 days	8 years 6 months																																4 years 8 months 12 days
Dividend yield	1.64%	1.75%	1.59%																																1.63%

[1] Includes the issuance of approximately 1.1 million stock option replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $13.7 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Income Tax Expense Included in Consolidated Statements of Income

The components of income tax expense included in the Consolidated Statements of Income were as follows:

	Years Ended December 31,
(in thousands)	2013			2012			2011
Current income tax expense:
Federal	$	69,838			98,153			83,518
State		2,949			2,572			4,666
Foreign		12,637			14,092			12,922
Total current income tax expense		85,424			114,817			101,106
Deferred income tax expense (benefit):
Federal		27,447			1,395			3,126
State		(55	)		411			61
Foreign		(447	)		(1,521	)		(1,696	)
Total deferred income tax expense		26,945			285			1,491
Total income tax expense	$	112,369			115,102			102,597

Components of Income Tax Before Income Tax

	Years Ended December 31,
(in thousands)	2013		2012		2011
Components of income before income tax expense:
Domestic	$	327,801		320,581		279,416
Foreign		28,118		34,273		37,135
Total income before income tax expense	$	355,919		354,854		316,551

Income Tax Expense Differed from Amounts Computed by Applying Statutory U.S. Federal Income Tax Rate to Income before Income Taxes, Noncontrolling Interest and Equity in Income of Equity Investments

Income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate of 35% to income before income taxes, noncontrolling interest and equity in income of equity investments as a result of the following:

	Years Ended December 31,
(in thousands)	2013			2012			2011
Computed “expected” income tax expense	$	124,572			124,199			110,793
Increase (decrease) in income tax expense resulting from:
International tax rate differential		3,228			2,781			1,831
State income tax expense, net of federal income tax effect		3,495			2,143			3,164
Increase in valuation allowance		549			193			3,773
Tax credits		(6,148	)		(3,762	)		(9,044	)
Deduction for domestic production activities		(8,225	)		(5,727	)		(5,524	)
Permanent differences and other, net		(5,102	)		(4,725	)		(2,396	)
Total income tax expense	$	112,369			115,102			102,597

Temporary Differences between Financial Statement Carrying Amounts and Tax Bases of Assets and Liabilities that Give Rise to Significant Portions of Net Deferred Tax Liability

Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability as of December 31, 2013 and 2012 relate to the following:

(in thousands)	2013			2012
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$	30,872			24,405
Allowances for doubtful accounts and billing adjustments		728			644
Deferred revenue		20,111			18,645
Other, net		45,705			41,348
Total deferred income tax assets		97,416			85,042
Less valuation allowance for deferred income tax assets		(19,949	)		(19,400	)
Net deferred income tax assets		77,467			65,642
Deferred income tax liabilities:
Excess tax over financial statement depreciation		(45,709	)		(36,682	)
Computer software development costs		(55,074	)		(39,637	)
Purchase accounting adjustments		(168,689	)		(4,514	)
Foreign currency translation		(10,291	)		(8,574	)
Other, net		(5,821	)		(9,150	)
Total deferred income tax liabilities		(285,584	)		(98,557	)
Net deferred income tax liabilities	$	(208,117	)		(32,915	)
Total net deferred tax assets (liabilities):
Current	$	14,770			9,825
Noncurrent		(222,887	)		(42,740	)
Net deferred income tax liability	$	(208,117	)		(32,915	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax liabilities is as follows ¹:

(in millions)	Year Ended December 31, 2013
Beginning balance	$	9.0
Current activity:
Additions based on tax positions related to current year		0.7
Additions for tax positions of prior years		1.5
Reductions for tax positions of prior years		(6.0	)
Settlements		(2.5	)
Net, current activity		(6.3	)
Ending balance	$	2.7

1 Unrecognized state tax liabilities are not adjusted for the federal tax impact.

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Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share

NOTE 25 Earnings Per Share

The following table illustrates basic and diluted EPS under the guidance of ASC 260:

	December 31, 2013					December 31, 2012					December 31, 2011
(in thousands, except per share data)	Common Stock			Participating Securities		Common Stock			Participating Securities		Common Stock			Participating Securities
Basic EPS:
Net income	$	244,750					244,280					220,559
Less income allocated to nonvested awards		(1,595	)		1,595		(800	)		800		(805	)		805
Net income allocated to common stock for EPS calculation(a)	$	243,155			1,595		243,480			800		219,754			805
Average common shares outstanding(b)		187,145			1,246		187,403			627		191,239			707
Basic EPS(a)/(b)	$	1.30			1.28		1.30			1.28		1.15			1.14
Diluted EPS:
Net income	$	244,750					244,280					220,559
Less income allocated to nonvested awards		(1,585	)		1,585		(796	)		796		(804	)		804
Net income allocated to common stock for EPS calculation(c)	$	243,165			1,585		243,484			796		219,755			804
Average common shares outstanding		187,145			1,246		187,403			627		191,239			707
Increase due to assumed issuance of shares related to common equivalent shares outstanding		1,648					1,262					345
Average common and common equivalent shares outstanding(d)		188,793			1,246		188,665			627		191,584			707
Diluted EPS(c)/(d)	$	1.29			1.27		1.29			1.27		1.15			1.14

The diluted EPS calculation excludes stock options and nonvested awards that are convertible into 1.9 million, 2.9 million and 3.6 million common shares for the years ended December 31, 2013, 2012 and 2011, respectively, because their inclusion would have been anti-dilutive.

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Estimated Future Amortization Expense on Payments for Processing Rights and Conversion Costs (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Conversion costs
Finite-Lived Intangible Assets And Liabilities [Line Items]
2014	$ 20,537
2015	28,201
2016	26,036
2017	20,678
2018	18,705
Payments for processing rights
Finite-Lived Intangible Assets And Liabilities [Line Items]
2014	13,925
2015	13,358
2016	10,969
2017	8,917
2018	$ 7,952

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Income Tax Effects Allocated to and Cumulative Balance of Accumulated Other Comprehensive Income (loss) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 1,408	$ (445)	$ (2,585)	$ 5,673
Pretax amount	4,441	2,272	5,397	(9,747)
Tax effect	2,100	419	3,257	(1,489)
Net-of-Tax Amount	2,341	1,853	2,140	(8,258)
Ending Balance	3,749	1,408	(445)	(2,585)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	3,332	(186)	(1,242)
Pretax amount	(295)	4,875	3,718
Tax effect	1,033	1,357	2,662
Net-of-Tax Amount	(1,328)	3,518	1,056
Ending Balance	2,004	3,332	(186)
Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pretax amount			28
Net-of-Tax Amount			28
Ending Balance	28	28	28
Change in Accumulated OCI Related to postretirement healthcare plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(1,952)	(287)	(1,343)
Pretax amount	1,926	(2,603)	1,651
Tax effect	30	(938)	595
Net-of-Tax Amount	1,896	(1,665)	1,056
Ending Balance	(56)	(1,952)	(287)
Gain on available for sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pretax amount	2,810
Tax effect	1,037
Net-of-Tax Amount	1,773
Ending Balance	$ 1,773

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Amounts of Assets Acquired and Liabilities Assumed Recognized (Detail) (USD $) In Thousands, unless otherwise specified				1 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Jul. 01, 2013 NetSpend Holdings Inc		Dec. 31, 2013 NetSpend Holdings Inc
Consideration
Cash				$ 1,355,270
Equity instruments				15,557
Dissenting shareholder liability				25,723	[1]
Fair value of total consideration transferred				1,396,550
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash				40,610
Accounts receivable				11,335
Property equipment and software				11,657
Identifiable intangible assets				480,086		401,600
Deferred tax asset				10,165
Other assets				36,660
Deferred tax liability				(155,945)
Financial liabilities				(62,452)
Total identifiable net assets				372,116
Goodwill	1,543,179	518,344	355,498	1,024,434		1,000,000
Total consideration				$ 1,396,550

[1] Represents 1.6 million NetSpend shares held by dissenting shareholders

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Basic and Diluted Earnings Per Share Under Guidance of ASC 260 (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Basic EPS:
Net income	$ 244,750	$ 244,280	$ 220,559
Basic EPS(a)/(b)	$ 1.30	$ 1.30	$ 1.15
Diluted EPS:
Net income	244,750	244,280	220,559
Diluted EPS(c)/(d)	$ 1.29	$ 1.29	$ 1.15
Common Stock
Basic EPS:
Net income	244,750	244,280	220,559
Less income allocated to nonvested awards	(1,595)	(800)	(805)
Net income allocated to common stock for EPS calculation(a)	243,155	243,480	219,754
Average common shares outstanding(b)	187,145	187,403	191,239
Basic EPS(a)/(b)	$ 1.30	$ 1.30	$ 1.15
Diluted EPS:
Net income	244,750	244,280	220,559
Less income allocated to nonvested awards	(1,585)	(796)	(804)
Net income allocated to common stock for EPS calculation(c)	243,165	243,484	219,755
Average common shares outstanding	187,145	187,403	191,239
Increase due to assumed issuance of shares related to common equivalent shares outstanding	1,648	1,262	345
Average common and common equivalent shares outstanding(d)	188,793	188,665	191,584
Diluted EPS(c)/(d)	$ 1.29	$ 1.29	$ 1.15
Participating Securities
Basic EPS:
Less income allocated to nonvested awards	1,595	800	805
Net income allocated to common stock for EPS calculation(a)	1,595	800	805
Average common shares outstanding(b)	1,246	627	707
Basic EPS(a)/(b)	$ 1.28	$ 1.28	$ 1.14
Diluted EPS:
Less income allocated to nonvested awards	1,585	796	804
Net income allocated to common stock for EPS calculation(c)	$ 1,585	$ 796	$ 804
Average common shares outstanding	1,246	627	707
Average common and common equivalent shares outstanding(d)	1,246	627	707
Diluted EPS(c)/(d)	$ 1.27	$ 1.27	$ 1.14

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Estimated Future Amortization Expense of Licensed Computer Software, Software Development Costs and Acquisition Technology Intangibles (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Licensed computer software
Finite-Lived Intangible Assets And Liabilities [Line Items]
2014	$ 48,293
2015	38,847
2016	27,964
2017	20,312
2018	12,805
Software development costs
Finite-Lived Intangible Assets And Liabilities [Line Items]
2014	26,396
2015	20,532
2016	15,925
2017	11,198
2018	7,994
Acquisition technology intangibles
Finite-Lived Intangible Assets And Liabilities [Line Items]
2014	19,715
2015	16,670
2016	15,202
2017	13,718
2018	$ 11,243

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Components of Income Tax Expense Included in Consolidated Statements of Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current income tax expense:
Federal	$ 69,838	$ 98,153	$ 83,518
State	2,949	2,572	4,666
Foreign	12,637	14,092	12,922
Total current income tax expense	85,424	114,817	101,106
Deferred income tax expense (benefit):
Federal	27,447	1,395	3,126
State	(55)	411	61
Foreign	(447)	(1,521)	(1,696)
Total deferred income tax expense	26,945	285	1,491
Total income tax expense	$ 112,369	$ 115,102	$ 102,597

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Fair Value Measurement - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill	$ 1,543,179	$ 518,344	$ 355,498

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Summarized Status of Performance-based Nonvested Shares and Changes during Period (Detail) (Performance Shares, USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Shares
Outstanding at beginning of year	809,000		580,000		316,000
Granted	564,000	[1]	278,000	[1]	300,000	[1]
Vested	(324,000)		(37,000)		(36,000)
Forfeited/canceled			(12,000)
Outstanding at end of year	1,049,000		809,000		580,000
Weighted Average Grant Date Fair Value
Outstanding at beginning of year	$ 18.76		$ 16.68		$ 15.65
Granted	$ 24.88	[1]	$ 22.91	[1]	$ 17.63	[1]
Vested	$ 15.93		$ 18.08		$ 15.61
Forfeited/canceled			$ 16.57
Outstanding at end of year	$ 22.75		$ 18.76		$ 16.68
NetSpend Holdings Inc
Shares
Granted	87,356
Weighted Average Grant Date Fair Value
Market value of stock awarded granted in connection with acquisition	$ 2.2

[1] Includes the issuance of approximately 87,356 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $2.2 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

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Earnings Per Share - Additional Information (Detail) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Computation Of Earnings Per Share Line Items
Convertible stock options and nonvested awards excluded from diluted EPS calculation	1.9	2.9	3.6

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Significant Components of Contract Acquisition Costs (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
Conversion costs, net	$ 112,239	$ 85,402
Payments for processing rights, net	72,651	75,865
Total	$ 184,890	$ 161,267

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Capital Lease Obligations (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Capital Lease Obligations [Line Items]
Capital lease obligations	$ 30,532	$ 30,418
Less current portion	23,032	13,263
Noncurrent portion of capital leases	$ 7,500	$ 17,155

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Summary of TSYS Equity Investments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Equity Method Investments [Line Items]
Equity investments	$ 94,133	$ 87,764
CUP Data
Schedule of Equity Method Investments [Line Items]
Equity investments	86,549	79,859
TSYS de Mexico
Schedule of Equity Method Investments [Line Items]
Equity investments	$ 7,584	$ 7,905

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Future Minimum Lease Payments under Capital Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Schedule of Capital Lease Obligations [Line Items]
2014	$ 23,424
2015	3,607
2016	2,397
2017	1,461
2018	247
Total minimum lease payments	31,136
Less amount representing interest	604
Principal minimum lease payments	$ 30,532

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Contract Acquisition Costs, net - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
Amortization related to payments for processing rights	$ 13.1	$ 13.3	$ 15.9
Amortization expense related to conversion costs	$ 19.6	$ 24.1	$ 18.8

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Computer Software, net - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013 Acquisition technology intangibles	Dec. 31, 2012 Acquisition technology intangibles	Dec. 31, 2011 Acquisition technology intangibles	Dec. 31, 2013 Licensed computer software	Dec. 31, 2012 Licensed computer software	Dec. 31, 2011 Licensed computer software	Dec. 31, 2013 Software development costs	Dec. 31, 2012 Software development costs	Dec. 31, 2011 Software development costs	Dec. 31, 2012 ProPay and CPAY	Apr. 30, 2010 ProPay and CPAY Acquisition technology intangibles
Indefinite-lived Intangible Assets [Line Items]
Business acquisition, acquired intangible assets										$ 76,600,000	$ 78,700,000
Amortization expenses	$ 15,900,000	$ 9,700,000	$ 10,300,000	$ 36,900,000	$ 37,400,000	$ 37,100,000	$ 21,600,000	$ 23,300,000	$ 24,400,000

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Equity

12 Months Ended

Dec. 31, 2013

Equity

NOTE 17 Equity

DIVIDENDS: Dividends on common stock of $56.5 million were paid in 2013, compared to $94.0 million and $53.9 million in 2012 and 2011, respectively. The decrease in dividends paid in 2013 compared to 2012 is due to the acceleration of payment of the fourth quarter 2012 dividend. The fourth quarter 2012 dividend payment was paid in December, rather than January, to allow shareholders to benefit from the lower dividend tax rate that was set to expire on December 31, 2012.

EQUITY COMPENSATION PLANS:    The following table summarizes TSYS’ equity compensation plans by category as of December 31, 2013:

(in thousands, except per share data) Plan Category	(a) Number of securities to be  issued upon exercise of outstanding options, warrants and rights		(b) Weighted-average exercise price of outstanding options, warrants and rights		(c) Number of securities  remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by security holders		5,752	$	20.96		11,544	1
Equity compensation plans not approved by security holders		—		—		—
Total		5,752	$	20.96		11,544

1 Includes 11,543,910 shares available for future grants under the Total System Services, Inc. 2007 Omnibus Plan and 2012 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares.

CHANGES IN TSYS’ OWNERSHIP INTEREST IN SUBSIDIARIES:    TSYS’ subsidiary GP Net repurchased 400 common shares on December 29, 2011 from its noncontrolling interest. As a result of the transaction, TSYS’ ownership increased to 54.08% from 53.00%. The following table presents the effect on TSYS’ shareholders’ equity from GP Net’s acquisition of treasury shares:

(in thousands)	Year Ended December 31, 2011
Increase in OCI	$	28
Increase in additional paid in capital		77
Effect from change in noncontrolling interests	$	105

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Weighted Average Assumptions and Fair Value of Options

The following table summarizes the weighted average assumptions, and the weighted average fair value of the options:

	2013			2012			2011
Number of options granted		1,939,796			818,090			716,508
Weighted average exercise price	$	17.42		$	22.95		$	17.61
Risk-free interest rate		1.31	%		1.69	%		2.96	%
Expected volatility		26.81	%		24.11	%		29.98	%
Expected term (years)		6.0			7.9			8.5
Dividend yield		1.64	%		1.75	%		1.59	%
Weighted average fair value	$	9.48		$	5.27		$	5.78

Summary of Stock Option Activity and Changes during Year

A summary of TSYS’ stock option activity as of December 31, 2013, 2012 and 2011, and changes during the years ended on those dates is presented below:

	2013					2012					2011
(in thousands, except per share data)	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Options:
Outstanding at beginning of year		6,065		$	21.27		6,082		$	20.61		8,810		$	23.40
Granted 1		1,940			17.42		818			22.95		717			17.61
Exercised		(2,177	)		18.75		(619	)		16.15		(597	)		13.51
Forfeited/canceled		(76	)		16.78		(216	)		23.73		(2,848	)		29.96
Outstanding at end of year		5,752		$	20.96		6,065		$	21.27		6,082		$	20.61
Options exercisable at year-end		3,232		$	23.02		3,235		$	24.12		3,122		$	25.00
Weighted average fair value of options granted during the year				$	9.48				$	5.27				$	5.78

1 Includes the issuance of approximately 1.1 million stock option replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $13.7 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

As of December 31, 2013, the average remaining contractual life and intrinsic value of TSYS’ outstanding and exercisable stock options were as follows:

	Outstanding		Exercisable
Average remaining contractual life (in years)		6.5		4.5
Aggregate intrinsic value (in thousands)	$	70,851	$	33,143

Summary of Stock Option Exercises

The table below summarizes these stock option exercises by year:

(in thousands)	Options Exercised and Issued from Treasury		Intrinsic Value
2013		2,177	$	16,580
2012		619		4,243
2011		597		3,627

Performance Shares

Summary of Number of Shares Granted Each Year

The following table summarizes the number of shares granted each year:

	2013		2012		2011
Number of shares		1,667,246		310,690		206,040
Market value (in millions)	$	41.3		6.7		3.6

Summary of Awards Authorized

A summary of the awards authorized in each year is below:

	Total Number of Shares Awarded		Potential Number of Performance- Based Shares  to be Vested
2013		563,803		563,803	(2016	)
2012		241,095		458,082	(2015	)
2011		263,292		403,521	(2014	)

Summarized Status of Performance-based Nonvested Shares and Changes during Period

A summary of the status of TSYS’ performance-based nonvested shares as of December 31, 2013, 2012 and 2011 and changes during those periods are presented below:

	2013					2012					2011
Performance-based Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Outstanding at beginning of year		809		$	18.76		580		$	16.68		316		$	15.65
Granted 1		564			24.88		278			22.91		300			17.63
Vested		(324	)		15.93		(37	)		18.08		(36	)		15.61
Forfeited/canceled		—			—		(12	)		16.57		—			—
Outstanding at end of year		1,049		$	22.75		809		$	18.76		580		$	16.68

1 Includes the issuance of approximately 87,356 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $2.2 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

Unvested Restricted Awards

Summarized Status of Nonvested Shares and Changes during Periods

A summary of the status of TSYS’ nonvested shares as of December 31, 2013, 2012 and 2011 and the changes during the periods are presented below:

	2013					2012					2011
Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value
Outstanding at beginning of year		554		$	19.96		618		$	16.80		821		$	16.91
Granted 1		1,667			24.75		311			21.47		206			17.67
Vested		(328	)		19.95		(366	)		15.91		(376	)		17.60
Forfeited/canceled		(110	)		23.82		(9	)		19.85		(33	)		15.71
Outstanding at end of year		1,783		$	24.19		554		$	19.96		618		$	16.80

1 Includes the issuance of approximately 870,361 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $21.5 million. A portion of the expense associated with these options has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

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Property and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2013

Property and Equipment Balances

Property and equipment balances as of December 31 are as follows:

(in thousands)	2013		2012
Computer and other equipment	$	274,987		247,506
Buildings and improvements		242,132		232,141
Furniture and other equipment		131,036		125,100
Land		17,021		16,920
Other		988		2,955
Total property and equipment		666,164		624,622
Less accumulated depreciation and amortization		400,948		364,233
Property and equipment, net	$	265,216		260,389

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Property and Equipment, net - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense related to property and equipment	$ 48.2	$ 46.3	$ 49.3

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Employee Benefit Plans - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2010 TSYS Retirement Savings Plan	Dec. 31, 2013 Stock Repurchase Plan	Dec. 31, 2013 Stock Repurchase Plan Directors Plan	Dec. 31, 2010 Maximum TSYS Retirement Savings Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contribution, percentage of eligible compensation	100.00%
Employee contribution, percentage of eligible compensation				4.00%
Percentage of employer discretionary contributions				4.00%
Percentage of employer contribution		15.00%	15.00%

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Relationships with Affiliated Companies (Tables)

12 Months Ended

Dec. 31, 2013

Revenues Derived from Affiliated Companies

The table below details revenues derived from affiliated companies for the years ended December 31, 2013, 2012 and 2011:

(in thousands)	2013		2012		2011
Total revenues:
CUP Data	$	229		172		136
TSYS de México		68		72		62
Total revenues	$	297		244		198

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Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Effects Allocated to and Cumulative Balance of Each Component of Accumulated Other Comprehensive Income (Loss)

The income tax effects allocated to and the cumulative balance of each component of accumulated other comprehensive income (loss) are as follows:

(in thousands)	Beginning Balance			Pretax amount			Tax effect			Net-of-tax Amount			Ending Balance
As of December 31, 2010	$	5,673			(9,747	)		(1,489	)		(8,258	)	$	(2,585	)
Foreign currency translation adjustments	$	(1,242	)		3,718			2,662			1,056		$	(186	)
Transfer from noncontrolling interest (NCI)		—			28			—			28			28
Change in accumulated other comprehensive income (OCI) related to postretirement healthcare plans		(1,343	)		1,651			595			1,056			(287	)
As of December 31, 2011	$	(2,585	)		5,397			3,257			2,140		$	(445	)
Foreign currency translation adjustments	$	(186	)		4,875			1,357			3,518		$	3,332
Transfer from NCI		28			—			—			—			28
Change in accumulated OCI related to postretirement healthcare plans		(287	)		(2,603	)		(938	)		(1,665	)		(1,952	)
As of December 31, 2012	$	(445	)		2,272			419			1,853		$	1,408
Foreign currency translation adjustments	$	3,332			(295	)		1,033			(1,328	)	$	2,004
Transfer from NCI		28			—			—			—			28
Gain on available for sale securities		—			2,810			1,037			1,773			1,773
Change in accumulated OCI related to postretirement healthcare plans		(1,952	)		1,926			30			1,896			(56	)
As of December 31, 2013	$	1,408			4,441			2,100			2,341		$	3,749

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Significant Components of Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets And Liabilities [Line Items]
Gross	$ 586,847	$ 185,218
Accumulated Amortization	(105,428)	(55,164)
Net	481,419	130,054
Channel relationships
Finite-Lived Intangible Assets And Liabilities [Line Items]
Gross	318,600	1,600
Accumulated Amortization	(20,261)	(266)
Net	298,339	1,334
Customer relationships
Finite-Lived Intangible Assets And Liabilities [Line Items]
Gross	167,871	167,641
Accumulated Amortization	(69,114)	(49,822)
Net	98,757	117,819
Trade name
Finite-Lived Intangible Assets And Liabilities [Line Items]
Gross	46,561	2,537
Accumulated Amortization	(6,527)	(1,504)
Net	40,034	1,033
Database
Finite-Lived Intangible Assets And Liabilities [Line Items]
Gross	28,000
Accumulated Amortization	(2,800)
Net	25,200
Covenants-Not-to-Compete
Finite-Lived Intangible Assets And Liabilities [Line Items]
Gross	14,940	3,440
Accumulated Amortization	(2,887)	(822)
Net	12,053	2,618
Trade association
Finite-Lived Intangible Assets And Liabilities [Line Items]
Gross	10,000	10,000
Accumulated Amortization	(3,750)	(2,750)
Net	6,250	7,250
Favorable lease
Finite-Lived Intangible Assets And Liabilities [Line Items]
Gross	875
Accumulated Amortization	(89)
Net	$ 786

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Summary of Weighted Average Assumptions and Fair Value of Options (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted	1,939,796	818,090	716,508
Weighted average exercise price	$ 17.42	$ 22.95	$ 17.61
Risk-free interest rate	1.31%	1.69%	2.96%
Expected volatility	26.81%	24.11%	29.98%
Expected term (years)	6 years	7 years 10 months 24 days	8 years 6 months
Dividend yield	1.64%	1.75%	1.59%
Weighted average fair value	$ 9.48	$ 5.27	$ 5.78

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Cash and Cash Equivalents - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents, money market accounts	$ 5.0	$ 2.5
Maximum
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents, money market accounts, original maturity date	90 days	90 days

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Future Minimum Lease Payments Under Noncancelable Operating Leases

The future minimum lease payments under noncancelable operating leases with remaining terms greater than one year for the next five years and thereafter and in the aggregate as of December 31, 2013, are as follows:

(in thousands)
2014	$	123,807
2015		121,904
2016		111,455
2017		43,517
2018		23,210
Thereafter		42,208
Total future minimum lease payments	$	466,101

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Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Basis of Presentation and Summary of Significant Accounting Policies

NOTE 1 Basis of Presentation and Summary of Significant Accounting Policies

BUSINESS:    Total System Services, Inc.’s (TSYS’ or the Company’s) revenues are derived from providing payment processing, merchant services and related payment services to financial and nonfinancial institutions, generally under long-term processing contracts. The Company also derives revenues by providing general purpose reloadable (GPR) prepaid debit cards and payroll cards and alternative financial services to underbanked consumers. The Company’s services are provided through the Company’s four operating segments: North America Services, International Services, Merchant Services and NetSpend.

Through the Company’s North America Services and International Services segments, TSYS processes information through its cardholder systems to financial institutions throughout the United States and internationally. The Company’s North America Services segment provides these services to clients in the United States, Canada, Mexico and the Caribbean. The Company’s International Services segment provides services to clients in Europe, India, Middle East, Africa, Asia Pacific and Brazil. The Company’s Merchant Services segment provides merchant services to merchant acquirers and merchants mainly in the United States. The Company’s NetSpend segment provides services to consumers in the United States.

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION:    The accompanying consolidated financial statements, which are prepared in accordance with generally accepted accounting principles (GAAP) include the accounts of TSYS and its wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities as defined in accordance with the provisions of Accounting Standards Codification (ASC) 810, “Consolidation,” and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810.

RISKS AND UNCERTAINTIES AND USE OF ESTIMATES:    Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, lower than anticipated growth from existing clients, an inability to attract new clients and grow internationally, loss of a major customer or other significant client, loss of a major supplier, an inability to grow through acquisitions or successfully integrate acquisitions, an inability to control expenses, technology changes, the impact of the application of and/or changes in accounting principles, financial services consolidation, changes in regulatory requirements, a decline in the use of cards as a payment mechanism, disruption of the Company’s international operations, breach of the Company’s security systems, a decline in the financial stability of the Company’s clients and uncertain economic conditions. Negative developments in these or other risk factors could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

The Company has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates and assumptions are developed based upon all information available. Actual results could differ from estimated amounts.

ACQUISITIONS — PURCHASE PRICE ALLOCATION:    TSYS’ purchase price allocation methodology requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities. TSYS estimates the fair value of assets and liabilities based upon appraised market values, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses. Management determines the fair value of fixed assets and identifiable intangible assets such as developed technology or customer relationships, and any other significant assets or liabilities. TSYS adjusts the purchase price allocation, as necessary, up to one year after the acquisition closing date as TSYS obtains more information regarding asset valuations and liabilities assumed. Unanticipated events or circumstances may occur which could affect the accuracy of the Company’s fair value estimates, including assumptions regarding industry economic factors and business strategies, and result in an impairment or a new allocation of purchase price.

Given its history of acquisitions, TSYS may allocate part of the purchase price of future acquisitions to contingent consideration as required by GAAP for business combinations. The fair value calculation of contingent consideration will involve a number of assumptions that are subjective in nature and which may differ significantly from actual results. TSYS may experience volatility in its earnings to some degree in future reporting periods as a result of these fair value measurements.

CASH AND CASH EQUIVALENTS:    Cash on hand and investments with a maturity of three months or less when purchased are considered to be cash equivalents.

ACCOUNTS RECEIVABLE:    Accounts receivable balances are stated net of allowances for doubtful accounts and billing adjustments.

TSYS records an allowance for doubtful accounts when it is probable that the accounts receivable balance will not be collected. When estimating the allowance for doubtful accounts, the Company takes into consideration such factors as its day-to-day knowledge of the financial position of specific clients, the industry and size of its clients, the overall composition of its accounts receivable aging, prior history with specific customers of accounts receivable write-offs and prior experience of allowances in proportion to the overall receivable balance. This analysis includes an ongoing and continuous communication with its largest clients and those clients with past due balances. A financial decline of any one of the Company’s large clients could have a material adverse effect on collectability of receivables and thus the adequacy of the allowance for doubtful accounts.

Increases in the allowance for doubtful accounts are recorded as charges to bad debt expense and are reflected in selling, general and administrative expenses in the Company’s Consolidated Statements of Income. Write-offs of uncollectible accounts are charged against the allowance for doubtful accounts.

TSYS records an allowance for billing adjustments for actual and potential billing discrepancies. When estimating the allowance for billing adjustments, the Company considers its overall history of billing adjustments, as well as its history with specific clients and known disputes. Increases in the allowance for billing adjustments are recorded as a reduction of revenues in the Company’s Consolidated Statements of Income and actual adjustments to invoices are charged against the allowance for billing adjustments.

UP-FRONT DISTRIBUTOR PAYMENTS:    The Company makes up-front contractual payments to third-party distribution partners. The Company assesses each up-front payment to determine whether it meets the criteria of an asset as defined by U.S. GAAP. If these criteria are met, the Company capitalizes the up-front payment and recognizes the capitalized amount as expense ratably over the benefit period, which is generally the contract period. If the contract requires the distributor to perform specific acts (i.e. achieve a sales goal) and no other conditions exist for the distributor to earn

or retain the up-front payment, then the Company capitalizes the payment and recognizes it as an expense when the performance conditions have been met. Up-front distributor payments are classified on the Consolidated Balance Sheet as other non-current assets and recorded as a cost of services in the Consolidated Statements of Income.

PROPERTY AND EQUIPMENT:    Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over estimated useful lives of 5-40 years, computer and other equipment over estimated useful lives of 2-5 years, and furniture and other equipment over estimated useful lives of 3-15 years. The Company evaluates impairment losses on long-lived assets used in operations in accordance with the provisions of ASC 360, “Property Plant and Equipment.”

All ordinary repairs and maintenance costs are expensed as incurred. Maintenance costs that extend the asset life are capitalized and amortized over the remaining estimated life of the asset.

LICENSED COMPUTER SOFTWARE:    The Company licenses software that is used in providing services to clients. Licensed software is obtained through perpetual licenses and site licenses and through agreements based on processing capacity (called “MIPS agreements”). Perpetual and site licenses are amortized using the straight-line method over their estimated useful lives which range from three to ten years. Software licensed under MIPS agreements is amortized using a units-of-production basis over the estimated useful life of the software, generally not to exceed ten years. At each balance sheet date, the Company evaluates impairment losses on long-lived assets used in operations in accordance with ASC 360.

ACQUISITION TECHNOLOGY INTANGIBLES:     These identifiable intangible assets are software technology assets resulting from acquisitions. These assets are amortized using the straight-line method over periods not exceeding their estimated useful lives, which range from five to nine years. The provisions of ASC 350, “Intangibles — Goodwill and Other,” require that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment in accordance with ASC 360. Acquisition technology intangibles’ net book values are included in computer software, net in the accompanying balance sheets. Amortization expenses are charged to cost of services in the Company’s Consolidated Statements of Income.

SOFTWARE DEVELOPMENT COSTS:    In accordance with the provisions of ASC 985, “Software,” software development costs are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. At each balance sheet date, the Company evaluates the unamortized capitalized costs of software development as compared to the net realizable value of the software product which is determined by future undiscounted net cash flows. The amount by which the unamortized software development costs exceed the net realizable value is written off in the period that such determination is made. Software development costs are amortized using the greater of (1) the straight-line method over its estimated useful life, which ranges from three to ten years or (2) the ratio of current revenues to total anticipated revenue over its useful life.

The Company also develops software that is used internally. These software development costs are capitalized based upon the provisions of ASC 350. Internal-use software development costs are capitalized once: (1) the preliminary project stage is completed, (2) management authorizes and commits to funding a computer software project, and (3) it is probable that the project will be completed and the software will be used to perform the function intended. Costs incurred prior to meeting the qualifications are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. Internal-use software development costs are amortized using the straight-line method over its estimated useful life which ranges from three to ten years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of the planned project becoming doubtful or due to technological obsolescence of the planned software product.

CONTRACT ACQUISITION COSTS:    The Company capitalizes contract acquisition costs related to signing or renewing long-term contracts. The Company capitalizes internal conversion costs in accordance with the provisions of Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition” and ASC 605, “Revenue Recognition.” The capitalization of costs related to cash payments for rights to provide processing services is capitalized in accordance with the provisions of ASC 605. All costs incurred prior to a signed agreement are expensed as incurred.

Contract acquisition costs are amortized using the straight-line method over the expected customer relationship (contract term) beginning when the client’s cardholder accounts are converted and producing revenues. The amortization of contract acquisition costs associated with cash payments for client incentives is included as a reduction of revenues in the Company’s Consolidated Statements of Income. The amortization of contract acquisition costs associated with conversion activity is recorded as cost of services in the Company’s Consolidated Statements of Income.

The Company evaluates the carrying value of contract acquisition costs associated with each customer for impairment on the basis of whether these costs are fully recoverable from either contractual minimum fees (contractual costs) or from expected undiscounted net operating cash flows of the related contract (cash incentives paid). The determination of expected undiscounted net operating cash flows requires management to make estimates. These costs may become impaired with the loss of a contract, the financial decline of a client, termination of conversion efforts after a contract is signed, diminished prospects for current clients or if the Company’s actual results differ from its estimates of future cash flows. The amount of the impairment is written off in the period that such a determination is made.

EQUITY INVESTMENTS:    TSYS’ 49% investment in Total System Services de México, S.A. de C.V. (TSYS de México), an electronic payment processing support operation located in Toluca, Mexico, is accounted for using the equity method of accounting, as is TSYS’ 44.56% investment in China UnionPay Data Co., Ltd. (CUP Data) headquartered in Shanghai, China. TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments.

GOODWILL:    Goodwill results from the excess of cost over the fair value of net assets of businesses acquired.

Goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually in accordance with the provisions of ASC 350. ASC 350 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values.

The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with the provisions of ASC 323, “Investments — Equity Method and Joint Ventures,” shall not be amortized. However, equity method goodwill shall not be reviewed for impairment in accordance with ASC 350, but instead should continue to be reviewed for impairment in accordance with paragraph 19(h) of ASC 323. Equity method goodwill, which is not reported as goodwill in the Company’s Consolidated Balance Sheet, but is reported as a component of the equity investment, was $52.7 million as of December 31, 2013.

OTHER INTANGIBLE ASSETS:    Identifiable intangible assets relate primarily to customer relationships, databases, channel relationships, covenants-not-to-compete, trade names and trade associations resulting from acquisitions. These identifiable intangible assets are amortized using the straight-line method over periods not exceeding the estimated useful lives, which range from three to ten years. ASC 350 requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 360. Amortization expenses are charged to selling, general and administrative expenses in the Company’s Consolidated Statements of Income.

FAIR VALUES OF FINANCIAL INSTRUMENTS:    The Company uses financial instruments in the normal course of its business. The carrying values of cash equivalents, accounts receivable, accounts payable, accrued salaries and employee benefits, and other current liabilities approximate their fair value due to the short-term maturities of these assets and liabilities. The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value.

Investments in equity investments are accounted for using the equity method of accounting and pertain to privately held companies for which fair value is not readily available. The Company believes the fair values of its investments in equity investments exceed their respective carrying values.

IMPAIRMENT OF LONG-LIVED ASSETS:    In accordance with ASC 360, the Company reviews long-lived assets, such as property and equipment and intangibles subject to amortization, including contract acquisition costs and certain computer software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If upon a triggering event the Company determines that the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.

TRANSACTION PROCESSING PROVISIONS:    The Company has recorded an accrual for contract contingencies (performance penalties) and processing errors. A significant number of the Company’s contracts with large clients contain service level agreements which can result in TSYS incurring performance penalties if contractually required service levels are not met. When providing for these accruals, the Company takes into consideration such factors as the prior history of performance penalties and processing errors incurred, actual contractual penalties inherent in the Company’s contracts, progress towards milestones and known processing errors not covered by insurance.

These accruals are included in other current liabilities in the accompanying Consolidated Balance Sheets. Increases and decreases in transaction processing provisions are charged to cost of services in the Company’s Consolidated Statements of Income, and payments or credits for performance penalties and processing errors are charged against the accrual.

REDEEMABLE NONCONTROLLING INTEREST:    In connection with the acquisition of CPAY, the Company is party to call and put arrangements with respect to the membership units that represent the remaining noncontrolling interest of CPAY. The call arrangement is exercisable by TSYS and the put arrangement is exercisable by the seller. The put arrangement is outside the control of the Company by requiring the Company to purchase the seller’s entire equity interest in CPAY at a put price at fair market value. The put arrangement is recorded on the balance sheet and is classified as redeemable noncontrolling interest outside of permanent equity.

NONCONTROLLING INTEREST:    Noncontrolling interest in earnings of subsidiaries represents the minority shareholders’ share of the net income or loss of GP Network Corporation (GP Net), TSYS Managed Services EMEA Ltd. (TSYS Managed Services) and CPAY. The noncontrolling interest in the Consolidated Balance Sheet reflects the original investment by these shareholders in GP Net and TSYS Managed Services, their proportional share of the earnings or losses and their proportional share of net gains or losses resulting from the currency translation of assets and liabilities of GP Net and TSYS Managed Services. TSYS has adopted the accounting policy to recognize gains or losses on equity transactions of a subsidiary as a capital transaction.

CARDHOLDERS’ RESERVE:    The Company is exposed to losses due to cardholder fraud, payment defaults and other forms of cardholder activity as well as losses due to non-performance of third parties who receive cardholder funds for transmittal to the Issuing Banks (banks that issue MasterCard International or Visa USA, Inc. branded cards to customers). The Company establishes a reserve for the losses it estimates will arise from processing customer transactions, debit card overdrafts, chargebacks for unauthorized card use and merchant-related chargebacks due to non-delivery of goods and services. These reserves are established based upon historical loss and recovery rates and cardholder activity for which specific losses can be identified. The cardholders’ reserve was approximately $5.8 million as of December 31, 2013. The Company regularly updates its reserve estimate as new facts become known and events occur that may impact the settlement or recovery of losses.

PROVISION FOR MERCHANT LOSSES:    The Company has potential liability for losses resulting from disputes between a cardholder and a merchant

that arise as a result of, among other things, the cardholder’s dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. If the merchant is unable to fund the refund, TSYS must do so. TSYS also bears the risk of reject losses arising from the fact that TSYS collects fees from its merchants on the first day after the monthly billing period. If the merchant has gone out of business during such period, TSYS may be unable to collect such fees. TSYS maintains cash deposits or requires the pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. Most chargeback and reject losses are charged to cost of services as they are incurred. However, the Company also maintains a provision against losses, including major fraud losses, which are both less predictable and involve larger amounts. The loss provision was established using historical loss rates, applied to recent bankcard processing volume. As of December 31, 2013, the Company had a loss provision in the amount of $991,000.

FOREIGN CURRENCY TRANSLATION:    The Company maintains several different foreign operations whose functional currency is their local currency. Foreign currency financial statements of the Company’s Mexican and Chinese equity investments, the Company’s wholly owned subsidiaries and the Company’s majority owned subsidiaries, as well as the Company’s division and branches in the United Kingdom and China, are translated into U.S. dollars at current exchange rates, except for revenues, costs and expenses, and net income which are translated at the average exchange rates for each reporting period. Net gains or losses resulting from the currency translation of assets and liabilities of the Company’s foreign operations, net of tax when applicable, are accumulated in a separate section of shareholders’ equity titled accumulated other comprehensive income (loss). Gains and losses on transactions denominated in currencies other than the functional currencies are included in determining net income for the period in which exchange rates change.

TREASURY STOCK:    The Company uses the cost method when it purchases its own common stock as treasury shares or issues treasury stock upon option exercises and displays treasury stock as a reduction of shareholders’ equity.

REVENUE RECOGNITION:    The Company recognizes revenues in accordance with the provisions of SAB No. 104. SAB No. 104 sets forth guidance as to when revenue is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience.

The Company’s North America and International Services revenues are derived from long-term processing contracts with financial and nonfinancial institutions and are generally recognized as the services are performed. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements mailed, cards embossed and mailed and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual revenue minimums, penalties for early termination, and service level agreements which may impact contractual fees if certain service levels are not achieved.

Revenue is recognized as the services are performed, primarily on a per unit basis. Processing contracts generally range from three to ten years in length. When providing payment processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, web-based services, and other payment processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract.

The Company’s Merchant Services revenues are derived from long-term processing contracts with large financial institutions, other merchant acquirers and merchant organizations which generally range from three to eight years and provide for penalties for early termination. Merchant services revenue is generated primarily from processing all payment forms including credit, debit, electronic benefits transfer and check truncation for merchants of all sizes across a wide array of retail market segments. The products and services offered include authorization and capture of electronic transactions, clearing and settlement of electronic transactions, information reporting services related to electronic transactions, merchant billing services, and point-of-sale terminal services. Revenue is recognized for merchant services as those services are performed, primarily on a per unit basis. When providing merchant processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, terminal services, and other merchant processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract. Revenues on point-of-sale terminal equipment are recognized upon the transfer of ownership and shipment of product.

When a sale involves multiple deliverables, revenue recognition is affected by the determination of the number of deliverables in an arrangement, whether those deliverables may be separated into separate units of accounting, and the valuation of each unit of accounting which affects the amount of revenue allocated to each unit. Pursuant to ASC 605, the Company uses vendor-specific objective evidence of selling price (VSOE) when it exists to determine the amount of revenue to allocate to each unit of accounting. The Company establishes VSOE of selling price using the price charged when the same service is sold separately. In certain situations, the Company does not have sufficient VSOE. In these situations, TSYS considered whether sufficient third party evidence (TPE) of selling price existed for the Company’s services. However, the Company typically is not able to determine TPE and has not used this measure of selling price due to the unique and proprietary nature of some of its services and the inability to reliably verify relevant standalone competitor prices. When there is insufficient evidence of VSOE and TPE, the Company has made its best estimate of the standalone selling price (ESP) of that service for purposes of allocating revenue to each unit of accounting. When determining ESP, TSYS uses limited standalone sales data that do not meet the Company’s criteria to establish VSOE, management pricing strategies, residual selling price data when VSOE exists for a group of elements, and margin objectives. Consideration is also given to geographies in which the services are sold or delivered, customer classifications, and market conditions including competitor pricing strategies and benchmarking studies. Revenue is recognized when the revenue recognition criteria for each unit of accounting have been met.

As business and service offerings change in the future, the determination of the number of deliverables in an arrangement and related units of accounting and the future pricing practices may result in changes in the estimates of VSOE and ESP, which may change the ratio of fees allocated to each service or unit of accounting in a given customer arrangement. There were no material changes or impact to revenue in revenue recognition in the year ended December 31, 2013 due to any changes in the determination of the number of deliverables in an arrangement, units of accounting, or estimates of VSOE or ESP.

In many situations, the Company enters into arrangements with customers to provide conversion or implementation services in addition to processing services where the conversion or implementation services do not have standalone value. In these situations, the deliverables do not meet the criteria of ASC 605-25 for separation and the deliverables are combined as a single unit of accounting for revenue recognition. For these arrangements, conversion or implementation services that do not have standalone value, are recognized over the expected customer relationship (contract term) contract term as the related processing services are performed.

The Company’s other services generally have standalone value and constitute separate units of accounting for revenue recognition purposes. However, customer arrangements entered into prior to January 1, 2011 often included services for which sufficient objective and reliable evidence of fair value did not exist. In certain situations, sufficient objective and reliable evidence of fair value did not exist for multiple undelivered services, and the deliverables were combined and recognized as a single unit of accounting based on the proportional performance for the combined unit. Beginning on January 1, 2011, services in new or materially modified arrangements of this nature are now divided into separate units of accounting and revenue is allocated to each unit based on the relative selling price method. As the services in these arrangements are generally delivered over the same term with consistent patterns of performance, there is no change in the timing or pattern of revenue recognition upon adoption of Accounting Standard Update (ASU) 2009-13, “Multiple-Deliverable Revenue Arrangements,” an update to ASC Topic 605, “Revenue Recognition,” and formerly known as EITF 08-1, “Revenue Arrangements with Multiple Deliverables”, nor does it have a material effect on revenue recognition for these arrangements in future periods.

The Company’s multiple element arrangements may include one or more elements that are subject to other topics including software revenue recognition and leasing guidance. The consideration for these multiple element arrangements is allocated to each group of deliverables – those subject to ASC 605-25 and those subject to other topics based on the revised guidance in ASU 2009-13. Arrangement revenue for each group of deliverables is then further separated, allocated, and recognized based on applicable guidance.

The Company’s NetSpend revenues principally consist of a portion of the service fees and interchange revenues received by the Issuing Banks in connection with the programs NetSpend manages. Revenue is recognized when there is persuasive evidence of an arrangement, the relevant services have been rendered, the price is fixed or determinable and collectability is reasonably assured.

Cardholders are charged fees in connection with NetSpend’s products and services as follows:

• Transactions — Cardholders are typically charged a fee for each PIN and signature-based purchase transaction made using their GPR cards, unless the cardholder is on a monthly or annual service plan, in which case the cardholder is instead charged a monthly or annual subscription fee, as applicable. Cardholders are also charged fees for ATM withdrawals and other transactions conducted at ATMs.

• Customer Service and Maintenance — Cardholders are typically charged fees for balance inquiries made through NetSpend’s call centers. Cardholders are also charged a monthly maintenance fee after a specified period of inactivity.

• Additional Products and Services — Cardholders are charged fees associated with additional products and services offered in connection with certain of the GPR cards, including the use of overdraft features, a variety of bill payment options, custom card designs and card-to-card transfers of funds initiated through NetSpend’s call centers.

• Other — Cardholders are charged fees in connection with the acquisition and reloading of the GPR cards at retailers and the Company receives a portion of these amounts in some cases.

Revenue resulting from the service fees charged to the cardholders described above is recognized when the fees are charged because the earnings process is substantially complete, except for revenue resulting from the initial activation of cards and annual subscription fees. Revenue resulting from the initial activation of cards is recognized ratably, net of commissions paid to the distributors, over the average account life, which is approximately one year for GPR cards. Revenue resulting from annual subscription fees is recognized ratably over the annual period to which the fees relate.

NetSpend earns revenues from a portion of the interchange fees remitted by merchants when cardholders make purchases at their locations using their GPR cards. Subject to applicable law, interchange fees are fixed by the Networks. Interchange revenues are recognized net of sponsorship, licensing and processing fees charged by the Networks for services they provide in processing purchase transactions routed through them. Interchange revenue is recognized during the period that the purchase transactions occur. Also included in interchange revenue are fees earned from branding agreements with the Networks.

In regards to taxes assessed by a governmental authority imposed directly on a revenue producing transaction, the Company reports its revenues on a net basis.

REIMBURSABLE ITEMS:    Reimbursable items consist of out-of-pocket expenses which are reimbursed by the Company’s clients. These expenses consist primarily of postage, access fees and third party software. The Company accounts for reimbursable items in accordance with the provisions of ASC 605.

SHARE-BASED COMPENSATION: ASC 718, “Compensation — Stock Compensation,” establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. ASC 718 requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award.

ASC 718 is effective for all awards granted on or after January 1, 2006, and to awards modified, repurchased or cancelled after that date. ASC 718 requires the Company to recognize compensation costs for the nonvested portion of outstanding share-based compensation granted in the form of stock options based on the grant-date fair value of those awards calculated under the provisions of ASC 718, for pro forma disclosures. Share-based compensation expenses include the impact of expensing the fair value of stock options, as well as expenses associated with nonvested shares. TSYS adopted the provisions of ASC 718 effective January 1, 2006 using the modified-prospective-transition method.

ASC 718 requires companies to estimate forfeitures when recognizing compensation cost. The estimate of forfeitures will be adjusted by the Company as actual forfeitures differ from its estimates, resulting in compensation cost only for those awards that actually vest. The effect of the change in estimated forfeitures is recognized as compensation costs in the period the change in estimate occurred. In estimating its forfeiture rate, the Company stratified its data based upon historical experience to determine separate forfeiture rates for the different award grants. The Company currently estimates a forfeiture rate for existing stock option grants to TSYS non-executive employees, and a forfeiture rate for other TSYS share-based awards. Currently, TSYS estimates a forfeiture rate in the range of 0% to 10%.

The Company has issued vested awards to directors and nonvested awards to certain employees. The market value of the common stock at the date of issuance is recognized as compensation expense immediately for vested awards and over the vesting period of the nonvested awards. For nonvested award grants that have pro rata vesting, the Company recognizes compensation expense using the straight-line method over the vesting period of the award.

LEASES:    The Company is obligated under noncancelable leases for computer equipment and facilities. As these leases expire, they will be evaluated and renewed or replaced by similar leases based on need. A lease is an agreement conveying the right to use property, plant, or equipment (land and/or depreciable assets) usually for a stated period of time. For purposes of applying the accounting and reporting standards, leases are classified from the standpoint of the lessee as capital or operating leases.

Rental payments on operating leases are charged to expense over the lease term. If rental payments are not made on a straight-line basis, rental expense nevertheless shall be recognized on a straight-line basis unless another systematic and rational basis is more representative of the time pattern in which use benefit is derived from the leased property, in which case that basis shall be used.

Certain of the Company’s operating leases are for office space. The Company will make various alterations (leasehold improvements) to the office space and capitalize these costs as part of property and equipment. Leasehold improvements are amortized on a straight-line basis over the useful life of the improvement or the term of the lease, whichever is shorter.

ADVERTISING:    Advertising costs, consisting mainly of advertising in trade publications, are expensed as incurred or the first time the advertising takes place except for direct-response advertising and television advertising production costs. Direct-response advertising consists of commission paid to affiliate marketers for the new funded customer accounts generated by them. Direct-response advertising costs are capitalized and amortized over the average life of the new accounts, which is approximately one year. Television advertising production costs consist of the costs of developing and filming television ads. Television advertising production costs are capitalized when the production services are received and expensed in the period when the advertising first takes place. Advertising expense for 2013, 2012 and 2011 was $1.3 million, $1.0 million and $813,000, respectively.

INCOME TAXES:    Income taxes reflected in TSYS’ consolidated financial statements are computed based on the taxable income of TSYS and its affiliated subsidiaries. A consolidated U.S. federal income tax return is filed for TSYS and its majority owned U.S. subsidiaries. Additionally, income tax returns are also filed in states where TSYS and its subsidiaries have filing obligations and in foreign jurisdictions where TSYS has a foreign affiliate.

The Company accounts for income taxes in accordance with the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Reserves against the carrying value of a deferred tax asset are established when necessary to reflect the decreased likelihood of realization of a deferred asset in the future. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Income tax provisions require the use of management judgments, which are subject to challenge by various taxing authorities. Contingency reserves are periodically established where the amount of the contingency can be reasonably determined and is likely to occur. Reductions in contingency reserves are recognized when tax disputes are settled or examination periods lapse.

Significant estimates used in accounting for income taxes relate to the determination of taxable income, the determination of temporary differences between book and tax basis, as well as estimates on the realizability of tax credits and net operating losses.

TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the Consolidated Statements of Income.

EARNINGS PER SHARE:    The guidance under ASC 260, “Earnings Per Share,” holds that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are “participating securities” as defined in ASC 260, and therefore should be included in EPS using the two-class method.

The two-class method is an earnings allocation method for computing EPS when an entity’s capital structure includes two or more classes of common stock or common stock and participating securities. It determines EPS based on dividends declared on common stock and participating securities and participation rights of participating securities in any undistributed earnings.

Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised. Diluted EPS is calculated by dividing net income by weighted average common and common equivalent shares outstanding. Common equivalent shares are calculated using the treasury stock method.

RECLASSIFICATIONS:    Certain reclassifications have been made to the 2012 and 2011 financial statements to conform to the presentation adopted in 2013.

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Treasury Stock - Additional Information (Detail) (USD $)	0 Months Ended			1 Months Ended	12 Months Ended					0 Months Ended			1 Months Ended
	Dec. 31, 2013	Jul. 24, 2012	Dec. 29, 2011	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Nov. 30, 2013	Oct. 31, 2013	Apr. 20, 2010 Maximum	Jul. 24, 2012 Maximum	May 03, 2011 Maximum	Jan. 31, 2014 Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Shares authorized to be repurchased under stock repurchase plan										10,000,000	20,000,000	15,000,000	28,000,000
Time shares may be purchased										2 years
Expiration date of shares authorized to be repurchased under stock repurchase plan		Apr. 30, 2014											Apr. 30, 2015
Purchase of treasury shares (in shares)	3,100,000		400	3,100,000	3,100,000	3,200,000	6,600,000
Stock repurchase value					$ 97,600,000	$ 74,600,000	$ 120,600,000
Repurchase of common stock, average cost per share	$ 31.48			$ 31.48	$ 31.48	$ 23.31	$ 18.28
Shares available for repurchase	4,007,000			4,007,000	4,007,000			7,107,000	7,107,000				12,000,000
Treasury stock acquired as a result of share withholding for taxes					264,383	31,000
Value of treasury stock acquired as a result of share withholding for taxes					$ 6,300,000	$ 671,000.0

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Significant Components of Prepaid Expenses and Other Current Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
Prepaid expenses	$ 42,341	$ 24,615
Supplies inventory	12,927	8,881
Other	41,427	36,710
Total	$ 96,695	$ 70,206

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Amounts of Assets Acquired and Liabilities Assumed Recognized (Parenthetical) (Detail) (NetSpend Holdings Inc) In Millions, unless otherwise specified	Jul. 01, 2013
NetSpend Holdings Inc
Business Acquisition [Line Items]
Dissenting shareholder, shares	1.6

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Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Provision for doubtful accounts
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 2,614		$ 2,108		$ 1,982
Additions Changes in allowances, charges to expenses and changes to other accounts	2,375	[1]	2,045	[1]	1,899	[1]
Deductions	(2,232)	[2]	(1,539)	[2]	(1,773)	[2]
Balance at end of period	2,757		2,614		2,108
Provision for billing adjustments
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	1,297		2,037		2,560
Additions Changes in allowances, charges to expenses and changes to other accounts	(376)	[1]	(991)	[1]	(347)	[1]
Deductions	(294)	[2]	251	[2]	(176)	[2]
Balance at end of period	627		1,297		2,037
Transaction processing accruals - processing errors
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	1,724		5,322		5,140
Additions Changes in allowances, charges to expenses and changes to other accounts	7,458	[3]	2,803	[3]	3,763	[3]
Deductions	(6,773)	[2]	(6,401)	[2]	(3,581)	[2]
Balance at end of period	2,409		1,724		5,322
Deferred tax valuation allowance
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	19,400		19,207		15,434
Additions Changes in allowances, charges to expenses and changes to other accounts	549	[4]	526	[4]	5,384	[4]
Deductions			(333)	[5]	(1,611)	[5]
Balance at end of period	19,949		19,400		19,207
Provision for Fraud Losses
Valuation and Qualifying Accounts Disclosure [Line Items]
Additions Changes in allowances, charges to expenses and changes to other accounts	19,737	[3],[6]
Deductions	(13,953)	[2]
Balance at end of period	$ 5,784

[1] Amount reflected includes charges to (recoveries of) bad debt expense which are classified in selling, general and administrative expenses and the charges for billing adjustment which are recorded against revenues.

[2] Accounts deemed to be uncollectible and written off during the year as it relates to bad debts. Amounts that relate to billing adjustments and transaction processing accruals reflect actual billing adjustments and processing errors charged against the allowances.

[3] Amount reflected is the change in transaction processing accruals reflected in cost of services expenses.

[4] Amount represents an increase in the amount of deferred tax assets, which more likely than not, will not be realized.

[5] Amount represents a decrease in the amount of deferred tax assets, which more likely than not, will not be realized.

[6] Includes $7.8 million of fraud losses on July 1, 2013 related to the acquisition of NetSpend.

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Equity Investments (Tables)

12 Months Ended

Dec. 31, 2013

Summary Of TSYS Equity Investments

A summary of TSYS’ equity investments as of December 31 is as follows:

(in thousands)	2013		2012
CUP Data	$	86,549		79,859
TSYS de México		7,584		7,905
Total	$	94,133		87,764

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Segment Reporting, including Geographic Area Data and Major Customers

12 Months Ended

Dec. 31, 2013

Segment Reporting, including Geographic Area Data and Major Customers

NOTE 21 Segment Reporting, including Geographic Area Data and Major Customers

ASC 280, “Segment Reporting” establishes standards for the way public business enterprises are to report information about operating segments in annual financial statements and requires those enterprises to report selected financial information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosures about products and services, geographic area data and major customers.

TSYS provides global payment processing and other services to card-issuing and merchant acquiring institutions in the United States and internationally through online accounting and electronic payment processing systems. Corporate expenses, such as finance, legal, human resources, mergers and acquisitions and investor relations are categorized as Corporate Administration.

On July 1, 2013, TSYS completed its acquisition of all the outstanding stock of NetSpend, which previously operated as a publicly traded company. NetSpend’s financial results are included in the NetSpend segment.

On December 26, 2012, TSYS completed its acquisition of all the outstanding stock of ProPay, a privately-held payment solutions company. ProPay’s financial results are included in the Merchant Services segment.

On August 8, 2012, TSYS completed its acquisition of 60% of CPAY, a privately held direct merchant acquirer. CPAY’s financial results are included in the Merchant Services segment.

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet, an Atlanta, Georgia-based merchant acquirer. TermNet’s financial results are included in the Merchant Services segment.

Refer to Note 23 for more information on acquisitions.

North America Services includes electronic payment processing services and other services provided from within the North America region. International Services includes electronic payment processing and other services provided from outside the North America region. Merchant Services includes electronic processing and other services provided to merchants and merchant acquirers. The NetSpend segment provides GPR prepaid debit and payroll cards and alternative financial service solutions to the underbanked and other consumers in the United States.

At TSYS, the chief operating decision maker (CODM) is a group consisting of Senior Executive Management and above. The information utilized by the CODM consists of the financial statements and the main metrics monitored are revenue growth and growth in profitability. Upon completion of the NetSpend acquisition, the CODM implemented a new metric called adjusted segment operating income in order to analyze each segment’s results of operations. This new metric consists of operating income adjusted for amortization of acquisition related intangibles and corporate administrative and other costs. All periods presented have been adjusted to reflect this new measure. Depreciation

and amortization for the segments changed as a result of this new metric removing amortization associated with intangible assets from the total for the segments.

In early 2013, TSYS embarked on two corporate-wide initiatives that impact more than one operating segment. One initiative is a multi-year, multi-phase initiative that consists of enhancing TSYS’ issuing processing platforms. The other is an innovation initiative focused on enhancing existing product and service offerings through several new product concepts and ideas on how to change existing processes. The costs associated with these two new initiatives are not allocated to the operating segments, but are combined, along with the existing corporate administration, in a grouping titled “Corporate Administration and Other.” This was a change the CODM requested and was used to evaluate performance and assess resources starting in the first quarter of 2013. The following operating results by segment comparison reflects the change in segment reporting from these initiatives, including the 2012 and 2011 results.

The Company believes the terms and conditions of transactions between the segments are comparable to those which could have been obtained in transactions with unaffiliated parties. TSYS’ operating segments share certain resources, such as information technology support, that TSYS allocates asymmetrically.

Years Ended December 31,
(in thousands)
Operating Segments	2013			2012			2011
Revenues before reimbursable items
North America Services	$	860,645			826,750			809,069
International Services		389,532			396,149			380,129
Merchant Services		446,277			409,698			373,159
NetSpend		207,851			—			—
Intersegment revenues		(12,550	)		(14,106	)		(21,659	)
Revenues before reimbursable items from external customers	$	1,891,755			1,618,491			1,540,698
Total revenues
North America Services	$	1,000,072			965,393			954,550
International Services		409,597			413,467			394,831
Merchant Services		533,049			512,580			487,997
NetSpend		207,851			—			—
Intersegment revenues		(18,216	)		(20,468	)		(28,412	)
Revenues from external customers	$	2,132,353			1,870,972			1,808,966
Depreciation and amortization
North America Services	$	74,479			74,673			77,446
International Services		47,978			55,033			49,722
Merchant Services		12,034			12,083			15,416
NetSpend		3,121			—			—
Segment depreciation and amortization		137,612			141,789			142,584
Acquisition intangible amortization		65,893			26,264			23,583
Corporate Administration and Other		1,846			2,557			2,998
Total depreciation and amortization	$	205,351			170,610			169,165
Adjusted segment operating income
North America Services	$	314,577			289,493			254,552
International Services		45,911			29,427			43,574
Merchant Services		154,047			156,283			133,695
NetSpend		59,717			—			—
Total adjusted segment operating income		574,252			475,203			431,821
Acquisition intangible amortization		(65,893	)		(26,264	)		(23,583	)
NetSpend merger and acquisition operating expenses (non-recurring)		(14,220	)		—			—
Corporate Administration and Other		(107,892	)		(91,287	)		(85,782	)
Operating income	$	386,247			357,652			322,456
As of December 31,	2013			2012
Total assets
North America Services	$	3,240,298			1,744,877
International Services		417,379			445,642
Merchant Services		676,592			703,725
NetSpend		1,596,150			—
Intersegment assets		(2,243,851	)		(870,406	)
Total assets	$	3,686,568			2,023,838

GEOGRAPHIC AREA DATA:    The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas:

	As of December 31,
(in millions)	2013		2012
United States	$	207.4		191.7
Europe		46.3		51.3
Japan		5.3		9.5
Other		6.2		7.9
Totals	$	265.2		260.4

The following geographic area data represents revenues for the years ended December 31 based on the domicile of the Company’s customers:

(in millions)	2013		%		2012		%		2011		%
United States	$	1,453.3		68.2	$	1,219.9		65.2	$	1,227.8		67.9
Europe		294.6		13.8		293.0		15.7		283.5		15.7
Canada		243.2		11.4		217.5		11.6		171.5		9.5
Japan		68.8		3.2		78.6		4.2		76.3		4.2
Mexico		16.5		0.8		11.7		0.6		7.8		0.4
Other		56.0		2.6		50.3		2.7		42.1		2.3
Totals	$	2,132.4		100.0	$	1,871.0		100.0	$	1,809.0		100.0

GEOGRAPHIC AREA REVENUE BY OPERATING SEGMENT:    The following table reconciles segment revenue to revenues by geography for the years ended December 31:

	North America Services						International Services						Merchant Services						NetSpend
(in millions)	2013		2012		2011		2013		2012		2011		2013		2012		2011		2013		2012		2011
United States	$	711.4		705.5		741.5	$	—		—		—	$	533.9		514.4		486.3	$	207.9				—
Europe		0.8		0.8		0.7		293.8		292.2		282.8		—		—		—		—		—		—
Canada		243.0		217.3		171.1		—		—		—		0.2		0.2		0.4		—		—		—
Japan		—		—		—		68.8		78.6		76.3		—		—		—		—		—		—
Mexico		16.5		11.7		7.8		—		—		—		—		—		—		—		—		—
Other		14.5		10.5		9.6		41.0		39.3		31.8		0.6		0.5		0.7		—		—		—
Totals	$	986.2		945.8		930.7	$	403.6		410.1		390.9	$	534.7		515.1		487.4	$	207.9		—		—

MAJOR CUSTOMER:    For the years ended December 31, 2013 and 2012, the Company had no major customers. For the year ended December 31, 2011, the Company had one major customer which accounted for approximately $210.9 million, or 11.7% of total revenues. Revenues from the major customer for the year ended December 31, 2011 are primarily attributable to the North America Services segment and the Merchant Services segment.

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Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2013

Other Comprehensive Income (Loss)

NOTE 20 Other Comprehensive Income (Loss)

Comprehensive income (loss) for TSYS consists of net income, cumulative foreign currency translation adjustments, unrealized gain on available for sale securities and the recognition of an overfunded or underfunded status of a defined benefit postretirement plan recorded as a component of shareholders’ equity. The income tax effects allocated to and the cumulative balance of each component of accumulated other comprehensive income (loss) are as follows:

(in thousands)	Beginning Balance			Pretax amount			Tax effect			Net-of-tax Amount			Ending Balance
As of December 31, 2010	$	5,673			(9,747	)		(1,489	)		(8,258	)	$	(2,585	)
Foreign currency translation adjustments	$	(1,242	)		3,718			2,662			1,056		$	(186	)
Transfer from noncontrolling interest (NCI)		—			28			—			28			28
Change in accumulated other comprehensive income (OCI) related to postretirement healthcare plans		(1,343	)		1,651			595			1,056			(287	)
As of December 31, 2011	$	(2,585	)		5,397			3,257			2,140		$	(445	)
Foreign currency translation adjustments	$	(186	)		4,875			1,357			3,518		$	3,332
Transfer from NCI		28			—			—			—			28
Change in accumulated OCI related to postretirement healthcare plans		(287	)		(2,603	)		(938	)		(1,665	)		(1,952	)
As of December 31, 2012	$	(445	)		2,272			419			1,853		$	1,408
Foreign currency translation adjustments	$	3,332			(295	)		1,033			(1,328	)	$	2,004
Transfer from NCI		28			—			—			—			28
Gain on available for sale securities		—			2,810			1,037			1,773			1,773
Change in accumulated OCI related to postretirement healthcare plans		(1,952	)		1,926			30			1,896			(56	)
As of December 31, 2013	$	1,408			4,441			2,100			2,341		$	3,749

Consistent with its overall strategy of pursuing international investment opportunities, TSYS adopted the permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain foreign subsidiaries. Its decision to permanently reinvest foreign earnings offshore means TSYS will no longer allocate taxes to foreign currency translation adjustments associated with these foreign subsidiaries accumulated in other comprehensive income.

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Equity - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended		1 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 29, 2011	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends on common stock				$ 56.5	$ 94.0	$ 53.9
Purchase of treasury shares (in shares)	3,100,000	400	3,100,000	3,100,000	3,200,000	6,600,000
Percentage of ownership interests after transaction		54.08%
Percentage of ownership interests		53.00%

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Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended									12 Months Ended			12 Months Ended												12 Months Ended								1 Months Ended	12 Months Ended	1 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 Minimum	Dec. 31, 2013 Maximum	Dec. 31, 2013 TSYS de Mexico	Dec. 31, 2012 TSYS de Mexico	Dec. 31, 2013 CUP Data	Dec. 31, 2012 CUP Data	Dec. 31, 2013 Internal-use software Minimum	Dec. 31, 2013 Internal-use software Maximum	Dec. 31, 2013 Goodwill	Dec. 31, 2013 Perpetual and site licenses Minimum	Dec. 31, 2013 Perpetual and site licenses Maximum	Dec. 31, 2013 Licensed computer software Maximum	Dec. 31, 2013 Other intangible assets Minimum	Dec. 31, 2013 Other intangible assets Maximum	Dec. 31, 2013 Acquisition technology intangibles Minimum	Dec. 31, 2013 Acquisition technology intangibles Maximum	Dec. 31, 2013 Software development costs Minimum	Dec. 31, 2013 Software development costs Maximum	Dec. 31, 2013 North American And International Services Minimum	Dec. 31, 2013 North American And International Services Maximum	Dec. 31, 2013 Merchant Services	Dec. 31, 2013 Merchant Services Minimum	Dec. 31, 2013 Merchant Services Maximum	Dec. 31, 2013 Buildings and improvements Minimum	Dec. 31, 2013 Buildings and improvements Maximum	Dec. 31, 2013 Computer and other equipment Minimum	Dec. 31, 2013 Computer and other equipment Maximum	Dec. 31, 2013 Furniture and other equipment Minimum	Dec. 31, 2013 Furniture and other equipment Maximum	Jul. 01, 2013 NetSpend Holdings Inc	Dec. 31, 2013 NetSpend Holdings Inc Segment	Jul. 01, 2013 NetSpend Holdings Inc Minimum	Jul. 01, 2013 NetSpend Holdings Inc Maximum
Significant Accounting Policies [Line Items]
Operating segments																																		4
Property and equipment, estimated useful live																											5 years	40 years	2 years	5 years	3 years	15 years
Intangible assets, estimated useful live										3 years	10 years		3 years	10 years	10 years	3 years	10 years			3 years	10 years														5 years	8 years
Software technology assets resulting from acquisitions, estimated useful live																		5 years	9 years														7 years 3 months 18 days
Equity method investment, percentage of ownership						49.00%		44.56%
Equity investments	$ 94,133,000	$ 87,764,000				$ 7,584,000	$ 7,905,000	$ 86,549,000	$ 79,859,000			$ 52,700,000
Cardholders' loss reserve	5,800,000
Reserve for merchant loss																								991,000
Processing contracts																						3 years	10 years		3 years	8 years
Estimated forfeiture rate				0.00%	10.00%
Advertising expenses	$ 1,300,000	$ 1,000,000	$ 813,000.0

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Long-term Debt and Capital Lease Obligations (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Long-term Debt

Long-term debt as of December 31 consists of:

(in thousands)	2013		2012
$550,000,000 2.375% Senior Notes, due June 1, 2018 (5 year tranche), net of discount	$	549,858		—
$550,000,000 3.75% Senior Notes, due June 1, 2023 (10 year tranche), net of discount		546,027		—
LIBOR + 1.125%, unsecured term loan, due April 8, 2018, with quarterly principal and interest payments		195,000		—
LIBOR + 1.125%, unsecured term loan, due September 10, 2017, with quarterly principal and interest payments		138,750		146,250
LIBOR + 0.80%, unsecured term loan, due November 5, 2014, with principal paid at maturity		—		23,236
1.50% note payable, due December 31, 2015, with monthly interest and principal payments		20,000		—
1.50% note payable, due December 31, 2013, with monthly interest and principal payments		—		13,452
1.50% note payable, due January 31, 2016, with monthly interest and principal payments		8,269		11,825
1.50% note payable, due July 31, 2015, with monthly interest and principal payments		4,604		7,457
Total debt		1,462,508		202,220
Less current portion		34,257		27,361
Noncurrent portion of long-term debt	$	1,428,251		174,859

Required Annual Principal Payments on Long-term Debt

Required annual principal payments on long-term debt for the five years subsequent to December 31, 2013 are summarized as follows:

(in thousands)
2014	$	34,257
2015		37,030
2016		30,336
2017		125,000
2018		690,000

Capital Lease Obligations

Capital lease obligations as of December 31 consist of:

(in thousands)	2013		2012
Capital lease obligations	$	30,532		30,418
Less current portion		23,032		13,263
Noncurrent portion of capital leases	$	7,500		17,155

Future Minimum Lease Payments under Capital Leases

The future minimum lease payments under capital leases as of December 31, 2013 are summarized as follows:

(in thousands)
2014	$	23,424
2015		3,607
2016		2,397
2017		1,461
2018		247
Total minimum lease payments		31,136
Less amount representing interest		604
Principal minimum lease payments	$	30,532

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Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2013

Supplemental Cash Flow Information

NOTE 22 Supplemental Cash Flow Information

Nonvested Share Awards

The Company has issued shares of TSYS common stock to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued in the form of nonvested stock bonus awards for services to be provided in the future by such officers and employees. Beginning in 2011, the grants to the Board of Directors were fully vested on the date of grant. Refer to Note 18 for more information on nonvested share awards.

Equipment and Software Acquired Under Capital Lease Obligations

The Company acquired computer equipment and software under capital lease in the amount of $14.8 million, $5.3 million and $8.1 million in 2013, 2012 and 2011, respectively.

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Acquisitions

12 Months Ended

Dec. 31, 2013

Acquisitions

NOTE 23 Acquisitions

2013

On July 1, 2013, TSYS acquired all the outstanding stock of NetSpend, which previously operated as a publicly traded company and is a leading provider of GPR prepaid debit and payroll cards and related financial services to underbanked consumers in the U.S. The acquisition complements the Company’s existing presence in the prepaid processing space. The results of the newly acquired business are being reported by TSYS as a new operating segment titled NetSpend.

Under the terms of the Merger Agreement, TSYS acquired 100 percent ownership of NetSpend for approximately $1.4 billion, including $1.2 billion of cash to shareholders, $70.7 million of cash for payment to holders of vested stock options and awards, $58.3 million of cash for repayment of NetSpend’s revolving credit facility and $15.6 million in replacement stock options and awards. NetSpend shareholders received $16.00 in cash for each share of NetSpend common stock. There were 1.6 million NetSpend shares held by five shareholders who have asserted appraisal (or dissenters’) rights with respect to their NetSpend shares, for a preliminary value of $25.7 million at $16.00 per share that were not funded at the closing of the acquisition.

Under the terms of the Merger Agreement, the Company replaced unvested share-based awards for certain current employees of NetSpend. The following table provides a list of all replacement awards and the estimated fair value of those awards issued in conjunction with the acquisition of NetSpend:

	Number of Shares and Options Issued		Fair Value (in millions)
Time-based restricted stock		870,361	$	21.5
Non-qualified stock options		530,696		8.4
Incentive stock options		529,452		5.3
Performance-based restricted stock		87,356		2.2
Total		2,017,865	$	37.4

The portion of the fair value of the replacement awards related to services provided prior to the business combination was included in the total purchase price. The portion of the fair value associated with future service is recognized as expense over the future service period, which varies by award. The Company determined that $15.6 million ($11.1 million net of tax) of the replacement awards was related to services rendered prior to the business combination.

The goodwill amount of $1.0 billion arising from the acquisition consists largely of expansion of customer base, differentiation in market opportunity and economies of scale expected from combining the operations of TSYS and NetSpend. All of the goodwill was assigned to TSYS’ new NetSpend segment. The goodwill recognized is not expected to be deductible for income tax purposes.

The following table summarizes the consideration paid for NetSpend and the preliminary recognized amounts of the identifiable assets acquired and liabilities assumed on July 1, 2013 (the acquisition date). These amounts will remain preliminary until the valuation analysis has been finalized. The measurement period during which changes in assets, liabilities, equity interests, or items of consideration are subject to adjustment ends one year following the acquisition date. The Company continues to evaluate consideration paid, deferred taxes, goodwill and financial liabilities.

(in thousands)
Consideration
Cash	$	1,355,270
Equity instruments		15,557
Dissenting shareholder liability*		25,723
Fair value of total consideration transferred	$	1,396,550
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash	$	40,610
Accounts receivable		11,335
Property equipment and software		11,657
Identifiable intangible assets		480,086
Deferred tax asset		10,165
Other assets		36,660
Deferred tax liability		(155,945	)
Financial liabilities		(62,452	)
Total identifiable net assets		372,116
Goodwill		1,024,434
	$	1,396,550

* Represents 1.6 million NetSpend shares held by dissenting shareholders

Identifiable intangible assets acquired in the NetSpend acquisition include channel relationships, current technology, a prospect database, the NetSpend trade name and non-compete agreements.

The identifiable intangible assets had no significant estimated residual value. These intangible assets are being amortized over their estimated useful lives of five to eight years based on the pattern of expected future economic benefit, which approximates a straight-line basis over the useful lives of the assets. The fair value of the acquired identifiable intangible assets of $480.1 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. The fair values and useful lives of the identified intangible assets were primarily determined using forecasted cash flows, which included estimates for certain assumptions such as revenues, expenses, attrition rates and royalty rates. The estimated fair value of identifiable intangible assets acquired in the acquisitions and the related estimated weighted average useful lives are as follows:

(in thousands)	Fair Value		Weighted Average Useful Life (in years)
Channel relationships	$	317,000		8.0
Covenants-not-to-compete		11,500		6.0
Current technology		78,711		7.0
Database		28,000		5.0
Trade name		44,000		5.0
Favorable lease		875		4.9
Total acquired identifiable intangible assets	$	480,086		7.3

The fair value measurement of the identifiable intangible assets represents Level 2 and Level 3 measurements as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 11%, (c) a pre-tax royalty rate range of 2.5-7.0%, (d) attrition rates of 5%-40%, (e) an effective tax rate of 40%, and (f) a terminal value based on a long-term sustainable growth rate of 3%.

In connection with the acquisition, TSYS incurred $14.2 million in acquisition-related costs primarily related to professional legal, finance, and accounting costs. These costs were expensed as incurred and are included in merger and acquisition expenses on the income statement for the year ended December 31, 2013.

Pro Forma Results of Operations

The amounts of NetSpend revenue and earnings included in TSYS’ consolidated income statement for the years ended December 31, 2013 and 2012, and the pro forma revenue and earnings of the combined entity had the acquisition date been January 1, 2012 are:

	Actual				Supplemental pro forma
	Years Ended December 31,				Years Ended December 31,
(in thousands, except per share data)	2013		2012		2013		2012
Revenue	$	2,132,353		1,870,972		2,354,396		2,222,069
Net income attributable to TSYS common shareholders	$	244,750		244,280		239,775		193,255
Basic EPS attributable to TSYS common shareholders	$	1.30		1.30		1.27		1.03
Diluted EPS attributable to TSYS common shareholders	$	1.29		1.29		1.26		1.03

The unaudited pro forma financial information presented above does not purport to represent what the actual results of operations would have been if the acquisition of NetSpend’s operations had occurred prior to January 1, 2012, nor is it indicative of the future operating results of TSYS. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, including, but not limited to, anticipated cost savings from operating synergies.

The unaudited pro forma financial information presented in the table above has been adjusted to give effect to adjustments that are (1) directly related to the business combination; (2) factually supportable; and (3) expected to have a continuing impact. These adjustments include, but are not limited to, the application of accounting policies; and depreciation and amortization related to fair value adjustments to property, plant and equipment and intangible assets.

The pro forma adjustments do not reflect the following material items that result directly from the acquisition and which impacted our statement of operations following the acquisition:

• Acquisition and related financing transactions costs relating to fees to investment bankers, attorneys, accountants, and other professional advisors, and other transaction-related costs that were not capitalized as deferred financing costs; and

• The effect of anticipated cost savings or operating efficiencies expected to be realized and related restructuring charges such as technology and infrastructure integration expenses, and other costs related to the integration of NetSpend into TSYS.

2012

On December 26, 2012, TSYS completed its acquisition of ProPay for $123.7 million. ProPay previously operated as a privately-held company, and offers simple, secure and affordable payment solutions for organizations ranging from small, home based entrepreneurs to multi-billion dollar enterprises. The results of operations for ProPay are immaterial and therefore not included in the Company’s results for the year ended December 31, 2012. The goodwill of $93.5 million recorded arises largely from synergies and economies of scale expected to be realized from combining the operations of TSYS and ProPay. None of the goodwill is tax deductible. ProPay is included as part of the Merchant Services segment.

On August 8, 2012, TSYS completed its acquisition of 60% of CPAY, a privately held direct merchant acquirer, for $66 million in cash. CPAY provides merchant services to small- to medium-sized merchants through an Independent Sales Agent (ISA) model, with a focus on merchants in the restaurant, personal services and retail sectors. The acquisition of CPAY expands the Company’s presence in the merchant acquiring industry and enhances the Company’s distribution model with CPAY’s strong sales agent channel. The results of operations for CPAY have been included in the Company’s results beginning August 8, 2012, and are included in the Merchant Services segment. The goodwill of $68.6 million recorded arises largely from synergies and economies of scale expected to be realized from combining the operations of TSYS and CPAY. All of the goodwill is tax deductible.

The following table summarizes the consideration paid for acquisitions and the preliminary recognized amounts of identifiable assets acquired and liabilities assumed during the year ended December 31, 2012.

(in thousands)
Cash and restricted cash	$	3,003
Accounts receivable		4,092
Other assets		12,522
Identifiable intangible assets		76,600
Other liabilities		(30,558	)
Noncontrolling interest in acquired entity		(38,000	)
Goodwill		162,090
Total consideration	$	189,749

The fair value of accounts receivable, accounts payable, accrued compensation, and other liabilities approximates the carrying amount of those assets and liabilities at the acquisition date. The fair value of accounts receivable due under agreements with customers is $4.1 million. The gross amount due under the agreements is $4.8 million, of which approximately $688,000 is expected to be uncollectible.

Of the $123.7 million in consideration paid for ProPay, $12.5 million has been placed in escrow for a period of 18 months to secure certain claims that may be brought against the escrowed consideration by TSYS pursuant to the merger agreement. Consideration is contingent and may be returned to the Company pursuant to indemnification commitments made by the shareholders which formerly owned ProPay related to a breach of the representations and warranties made in the merger agreement. Such indemnification commitments are recognized as a possible receivable and measured at fair value. Based upon the probability of various possible outcomes related to the indemnification commitments, TSYS has determined that the fair value of any receivable asset would be immaterial. The maximum amount of contingent consideration returnable to the Company related to certain indemnification commitments made by the Seller is $12.5 million. The maximum amount of contingent consideration returnable to the Company related to fundamental representations and warranties made by the Seller is unlimited.

Of the $66 million in consideration paid for CPAY, $3.3 million has been placed in escrow for a period of 21 months to secure certain claims that may be brought against the escrowed consideration by TSYS pursuant to the Investment Agreement. Consideration is contingent and may be returned to the Company pursuant to indemnification commitments made by the company which formerly owned 100% of Central Payment (Seller) related to, among other things, a breach of the representations and warranties made in the Investment Agreement, and losses arising out of any of the Excluded Liabilities as defined in the Investment Agreement. Such indemnification commitments are recognized as a possible asset receivable and measured at fair value. Based upon the probability of various possible outcomes related to the indemnification commitments, TSYS has determined that the fair value of any receivable asset would be immaterial. The maximum amount of contingent consideration returnable to the Company related to certain indemnification commitments made by the Seller is $9.9 million. The maximum amount of contingent consideration returnable to the Company related to fundamental representations and warranties made by the Seller is unlimited.

Identifiable intangible assets acquired in the acquisitions had no significant estimated residual value. These intangible assets are being amortized over their estimated useful lives of 2 to 10 years based on the pattern of expected future economic benefit, which approximates a straight-line basis over the useful lives of the assets. The fair value of the acquired identifiable intangible assets of $76.6 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. The fair values and useful lives of the identified intangible assets were primarily determined using forecasted cash flows, which included estimates for certain assumptions such as revenues, expenses, attrition rates, and royalty rates. The estimated fair value of identifiable intangible assets acquired in the acquisitions and the related estimated weighted average useful lives are as follows:

	Fair Value (in millions)		Weighted Average Useful Lives (in years)
Customer relationships	$	59.5		8.6
Covenants-not-to-compete		2.9		2.8
Current technology		13.0		5
Trade name		1.2		2
Total acquired identifiable intangible assets	$	76.6		7.7

This fair value measurement is based on significant inputs that are both observable (Level 2) and non-observable (Level 3) in the market as defined in ASC 820. Key assumptions in the ProPay acquisition include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 14.0% for the overall Company and a discount rate of 14.5% for the intangible assets, (c) a pre-tax royalty rate of 1.0% for trade names and technology (d) an attrition rate of 3.0%- 5.0%, (e) an effective tax rate of 39.0%, and (f) a terminal value based on a long-term sustainable growth rate of 3.0%.

Key assumptions in the CPAY acquisition include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 19.0% for the overall company and a discount rate of 19.5% for the intangible assets, (c) a pre-tax royalty rate of 1.0% for trade names and technology (d) an attrition rate of 25.0%, (e) an effective tax rate of 39.0%, and (f) a terminal value based on a long-term sustainable growth rate of 3.0%.

In connection with these acquisitions, TSYS incurred $1.3 million in acquisition-related costs primarily related to professional legal, finance, and accounting costs. These costs were expensed as incurred and are included in selling, general, and administrative expenses in the income statement for the year ended December 31, 2012.

Other

On February 1, 2012, TSYS acquired contract-based intangible assets in its Merchant Services segment for $1.7 million. These intangible assets are being amortized on a straight-line basis over their estimated useful lives of five years which approximates their usage.

Redeemable Noncontrolling Interest

The fair value of the noncontrolling interest in CPAY, owned by a private company, was based on the actual purchase price paid for the controlling interest in CPAY. Next adjustments were made for lack of control and lack of marketability that market participants would consider when estimating the fair value of the noncontrolling, non-marketable interest in CPAY.

In connection with the acquisition of CPAY, the Company is party to call and put arrangements with respect to the membership units that represent the remaining noncontrolling interest of CPAY. The call arrangement is exercisable by TSYS and the put arrangement is exercisable by the Seller. The put arrangement is outside the control of the Company by requiring the Company to purchase the Seller’s entire equity interest in CPAY at a put price at fair market value. The put arrangement is recorded on the balance sheet and is classified as redeemable noncontrolling interest outside of permanent equity.

The call and put arrangements for CPAY, representing 40% of its total outstanding equity interests, may be exercised at the discretion of TSYS or the Seller on the second anniversary of the closing and upon the recurrence of certain other specified events.

The put option is not currently redeemable, but redemption is considered probable based upon the passage of time of the second anniversary date. As such, the Company has adopted the accounting policy to accrete changes in the redemption value over the period from the date of issuance to the earliest redemption date, which the Company believes to be one year. If the put option was redeemable at December 31, 2013, the redemption value was estimated to be approximately $39.7 million. The Company did not accrete any changes to the redemption value as the balance as of December 31, 2013 exceeded the accretion fair value amount.

In February 2014, with cash on hand, the Company purchased an additional 15% equity interest in CPAY, reducing its redeemable noncontrolling interest in CPAY to 25%.

2011

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet, an Atlanta-based merchant acquirer, for $42 million in cash. TermNet provides merchant services to qualified merchants serving a diverse merchant base of over 18,000 merchants. The acquisition of TermNet expands the Company’s presence in the merchant acquiring industry. The results of operations for TermNet have been included in the Company’s results beginning May 2, 2011, and are included in the Merchant Services segment. The goodwill of $28.9 million recorded arises largely from synergies and economies of scale expected to be realized from combining the operations of TSYS and TermNet. Goodwill recognized in the acquisition of TermNet is not deductible for income tax purposes.

The following table summarizes the consideration paid for TermNet and the recognized amounts of identifiable assets acquired and liabilities assumed effective May 2, 2011:

(in thousands)
Cash and restricted cash	$	2,691
Accounts receivable		10,253
Other assets		1,516
Identifiable intangible assets		11,740
Goodwill		28,918
Accounts payable		(5,578	)
Accrued compensation		(2,683	)
Deferred income tax liability		(4,506	)
Other liabilities		(351	)
Total consideration	$	42,000

The fair value of accounts receivable, accounts payable, accrued compensation, and other liabilities approximates the carrying amount of those assets and liabilities at the acquisition date. The fair value of accounts receivable due under agreements with customers is $10.3 million. The gross amount due under the agreements is $10.4 million, of which approximately $100,000 is expected to be uncollectible. Of the $42 million in consideration paid for TermNet, $8.4 million was placed in escrow for a period of 18 months to secure certain claims brought against the escrowed consideration by TSYS pursuant to the merger agreement. The maximum amount of contingent consideration returnable to the Company related to fundamental representations and warranties made by TermNet is unlimited.

Identifiable intangible assets acquired in the TermNet acquisition include customer relationships, channel relationships, and non-compete agreements. The identifiable intangible assets had no significant estimated residual value. These intangible assets are being amortized over their estimated useful lives of 2 to 10 years based on the pattern of expected future economic benefit, which approximates a straight-line basis over the useful lives of the assets. The fair value of the acquired identifiable intangible assets of $11.7 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. The fair values and useful lives of the identified intangible assets were primarily determined using forecasted cash flows, which included estimates for certain assumptions such as revenues, expenses, attrition rates, and royalty rates. The estimated fair value of identifiable intangible assets acquired in the acquisition of TermNet and the related estimated weighted average useful lives are as follows:

	Fair Value (in millions)		Weighted Average Useful Lives (in years)
Customer relationships	$	10.0		7.0
Channel relationships		1.6		10.0
Covenants-not-to-compete		0.1		2.0
Total acquired identifiable intangible assets	$	11.7		7.3

The fair value measurement of the identifiable intangible assets is based on significant inputs that are not observable in the market and therefore, represents a Level 3 measurement as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 14%, (c) a pre-tax royalty rate range of 3-10%, (d) an attrition rate of 20%, (e) an effective tax rate of 36%, and (f) a terminal value based on a long-term sustainable growth rate of 3%.

In connection with the TermNet acquisition, TSYS incurred $192,000 in acquisition-related costs primarily related to professional legal, finance, and accounting costs. These costs were expensed as incurred and are included in selling, general, and administrative expenses in the income statement for 2011.

Other

On October 1, 2011, TSYS acquired contract-based intangible assets in its Merchant Services segment for $2.6 million. These intangible assets are being amortized on a straight-line basis over their estimated useful lives of five years.

In May 2011, TSYS made a payment of $6.0 million of contingent merger consideration in connection with the purchase of Infonox, which was accounted for under ASC 805. The payment of the contingent merger consideration by TSYS was recorded as goodwill and had no impact on results of operations.

Pro forma Results of Operations

The pro forma revenue and earnings of TSYS’ acquisitions other than NetSpend are not material to the consolidated financial statements.

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Consolidated Statements of Changes in Equity (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash dividends declared, per share	$ 0.40	$ 0.40	$ 0.31

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Collaborative Arrangement

12 Months Ended

Dec. 31, 2013

Collaborative Arrangement

NOTE 24 Collaborative Arrangement

TSYS has a 45% ownership interest in an enterprise jointly owned with two other entities which operates aircraft for the owners’ internal use. The arrangement allows each entity access to the aircraft and each entity pays for its usage of the aircraft. Each quarter, the net operating results of the enterprise are shared among the owners based on their respective ownership percentage.

TSYS records its usage of the aircraft and its share of net operating results of the enterprise in selling, general and administrative expenses.

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Summary of Long-term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Long-term debt	$ 1,462,508	$ 202,220
Less current portion	34,257	27,361
Noncurrent portion of long-term debt	1,428,251	174,859
2.375% Senior Notes due 2018
Debt Instrument [Line Items]
Long-term debt	549,858
3.750% Senior Notes due 2023
Debt Instrument [Line Items]
Long-term debt	546,027
LIBOR + 1.125%, unsecured term loan | Unsecured term loan due on April 08, 2018
Debt Instrument [Line Items]
Long-term debt	195,000
LIBOR + 1.125%, unsecured term loan | Unsecured term loan due on September 10, 2017
Debt Instrument [Line Items]
Long-term debt	138,750	146,250
LIBOR + 0.80%, unsecured term loan
Debt Instrument [Line Items]
Long-term debt		23,236
1.50% note payable | Due December 31, 2015
Debt Instrument [Line Items]
Long-term debt	20,000
1.50% note payable | Due December 31, 2013
Debt Instrument [Line Items]
Long-term debt		13,452
1.50% note payable | Due January 31, 2016
Debt Instrument [Line Items]
Long-term debt	8,269	11,825
1.50% note payable | Due July 31, 2015
Debt Instrument [Line Items]
Long-term debt	$ 4,604	$ 7,457

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Summary of Stock Option Exercises (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Exercised and Issued from Treasury	2,177	619	597
Intrinsic Value	$ 16,580	$ 4,243	$ 3,627

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Goodwill (Tables)

12 Months Ended

Dec. 31, 2013

Gross Amount and Accumulated Impairment Loss of Goodwill

The gross amount and accumulated impairment losses of goodwill as of December 31, 2013 and 2012 is as follows:

	2013
(in thousands)	North America Services		International Services		Merchant Services			NetSpend		Consolidated
Gross amount	$	70,796		34,201		415,973			1,024,434	$	1,545,404
Accumulated impairment losses		—		—		(2,225	)		—		(2,225	)
Goodwill, net	$	70,796		34,201		413,748			1,024,434	$	1,543,179

	2012
(in thousands)	North America Services		International Services		Merchant Services			NetSpend		Consolidated
Gross amount	$	70,796		33,944		415,829			—	$	520,569
Accumulated impairment losses		—		—		(2,225	)		—		(2,225	)
Goodwill, net	$	70,796		33,944		413,604			—	$	518,344

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill as of December 31, 2013 and 2012 are as follows:

(in thousands)	North America Services		International Services		Merchant Services		NetSpend		Consolidated
Balance as of December 31, 2011	$	70,796		33,188		251,514		—	$	355,498
CPAY purchase price allocation		—		—		68,570		—		68,570
ProPay purchase price allocation		—		—		93,520		—		93,520
Currency translation adjustments		—		756		—		—		756
Balance as of December 31, 2012		70,796		33,944		413,604		—		518,344
NetSpend purchase price allocation		—		—		—		1,024,434		1,024,434
ProPay purchase price allocation		—		—		144		—		144
Currency translation adjustments		—		257		—		—		257
Balance as of December 31, 2013	$	70,796		34,201		413,748		1,024,434	$	1,543,179

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Segment Reporting, including Geographic Area Data and Major Customers (Tables)

12 Months Ended

Dec. 31, 2013

Operating Segments

Years Ended December 31,
(in thousands)
Operating Segments	2013			2012			2011
Revenues before reimbursable items
North America Services	$	860,645			826,750			809,069
International Services		389,532			396,149			380,129
Merchant Services		446,277			409,698			373,159
NetSpend		207,851			—			—
Intersegment revenues		(12,550	)		(14,106	)		(21,659	)
Revenues before reimbursable items from external customers	$	1,891,755			1,618,491			1,540,698
Total revenues
North America Services	$	1,000,072			965,393			954,550
International Services		409,597			413,467			394,831
Merchant Services		533,049			512,580			487,997
NetSpend		207,851			—			—
Intersegment revenues		(18,216	)		(20,468	)		(28,412	)
Revenues from external customers	$	2,132,353			1,870,972			1,808,966
Depreciation and amortization
North America Services	$	74,479			74,673			77,446
International Services		47,978			55,033			49,722
Merchant Services		12,034			12,083			15,416
NetSpend		3,121			—			—
Segment depreciation and amortization		137,612			141,789			142,584
Acquisition intangible amortization		65,893			26,264			23,583
Corporate Administration and Other		1,846			2,557			2,998
Total depreciation and amortization	$	205,351			170,610			169,165
Adjusted segment operating income
North America Services	$	314,577			289,493			254,552
International Services		45,911			29,427			43,574
Merchant Services		154,047			156,283			133,695
NetSpend		59,717			—			—
Total adjusted segment operating income		574,252			475,203			431,821
Acquisition intangible amortization		(65,893	)		(26,264	)		(23,583	)
NetSpend merger and acquisition operating expenses (non-recurring)		(14,220	)		—			—
Corporate Administration and Other		(107,892	)		(91,287	)		(85,782	)
Operating income	$	386,247			357,652			322,456
As of December 31,	2013			2012
Total assets
North America Services	$	3,240,298			1,744,877
International Services		417,379			445,642
Merchant Services		676,592			703,725
NetSpend		1,596,150			—
Intersegment assets		(2,243,851	)		(870,406	)
Total assets	$	3,686,568			2,023,838

Property and Equipment, Net of Accumulated Depreciation and Amortization

The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas:

	As of December 31,
(in millions)	2013		2012
United States	$	207.4		191.7
Europe		46.3		51.3
Japan		5.3		9.5
Other		6.2		7.9
Totals	$	265.2		260.4

Revenues Based on Domicile of Company's Customers

The following geographic area data represents revenues for the years ended December 31 based on the domicile of the Company’s customers:

(in millions)	2013		%		2012		%		2011		%
United States	$	1,453.3		68.2	$	1,219.9		65.2	$	1,227.8		67.9
Europe		294.6		13.8		293.0		15.7		283.5		15.7
Canada		243.2		11.4		217.5		11.6		171.5		9.5
Japan		68.8		3.2		78.6		4.2		76.3		4.2
Mexico		16.5		0.8		11.7		0.6		7.8		0.4
Other		56.0		2.6		50.3		2.7		42.1		2.3
Totals	$	2,132.4		100.0	$	1,871.0		100.0	$	1,809.0		100.0

Reconciliation of Geographic Revenues to Revenues by Operating Segments

The following table reconciles segment revenue to revenues by geography for the years ended December 31:

	North America Services						International Services						Merchant Services						NetSpend
(in millions)	2013		2012		2011		2013		2012		2011		2013		2012		2011		2013		2012		2011
United States	$	711.4		705.5		741.5	$	—		—		—	$	533.9		514.4		486.3	$	207.9				—
Europe		0.8		0.8		0.7		293.8		292.2		282.8		—		—		—		—		—		—
Canada		243.0		217.3		171.1		—		—		—		0.2		0.2		0.4		—		—		—
Japan		—		—		—		68.8		78.6		76.3		—		—		—		—		—		—
Mexico		16.5		11.7		7.8		—		—		—		—		—		—		—		—		—
Other		14.5		10.5		9.6		41.0		39.3		31.8		0.6		0.5		0.7		—		—		—
Totals	$	986.2		945.8		930.7	$	403.6		410.1		390.9	$	534.7		515.1		487.4	$	207.9		—		—

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Weighted Average Useful Life of Each Component of Computer Software (Detail) (Computer Software, Intangible Asset)	12 Months Ended
	Dec. 31, 2013
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	5 years 10 months 24 days
Licensed computer software
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	5 years 8 months 12 days
Software development costs
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	5 years 9 months 18 days
Acquisition technology intangibles
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	6 years 9 months 18 days

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents (Note 4)	$ 278,230	$ 247,612
Accounts receivable, net of allowances for doubtful accounts and billing adjustments of $3.4 million and $3.9 million at 2013 and 2012, respectively	264,238	247,083
Deferred income tax assets (Note 14)	14,770	9,825
Prepaid expenses and other current assets (Note 5)	96,695	70,206
Total current assets	653,933	574,726
Goodwill (Note 6)	1,543,179	518,344
Other intangible assets, net of accumulated amortization (Note 7)	481,419	130,054
Computer software, net of accumulated amortization (Note 8)	369,773	226,917
Property and equipment, net of accumulated depreciation and amortization (Note 9)	265,216	260,389
Contract acquisition costs, net of accumulated amortization (Note 10)	184,890	161,267
Equity investments, net (Note 11)	94,133	87,764
Deferred income tax assets (Note 14)	5,840	5,334
Other assets	88,185	59,043
Total assets	3,686,568	2,023,838
Current liabilities:
Accrued salaries and employee benefits	38,775	26,243
Accounts payable	36,463	63,370
Current portion of long-term borrowings (Note 12)	34,257	27,361
Current portion of obligations under capital leases (Note 12)	23,032	13,263
Other current liabilities (Note 13)	164,688	100,282
Total current liabilities	297,215	230,519
Long-term borrowings, excluding current portion (Note 12)	1,428,251	174,859
Deferred income tax liabilities (Note 14)	228,727	48,074
Obligations under capital leases, excluding current portion (Note 12)	7,500	17,155
Other long-term liabilities	82,797	68,791
Total liabilities	2,044,490	539,398
Redeemable noncontrolling interest in consolidated subsidiary	39,652	39,505
Commitments and contingencies (Note 15)
Shareholders' equity (Notes 17, 18, 19, and 20):
Common stock - $0.10 par value. Authorized 600,000 shares; 202,790 and 202,471 issued at 2013 and 2012, respectively; 187,717 and 187,031 outstanding at 2013 and 2012, respectively	20,279	20,247
Additional paid-in capital	165,841	141,793
Accumulated other comprehensive income, net	3,749	1,408
Treasury stock, at cost (15,073 and 15,440 shares at 2013 and 2012, respectively)	(326,996)	(287,301)
Retained earnings	1,718,204	1,549,063
Total shareholders' equity	1,581,077	1,425,210
Noncontrolling interests in consolidated subsidiaries	21,349	19,725
Total equity	1,602,426	1,444,935
Total liabilities and equity	$ 3,686,568	$ 2,023,838

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Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Significant Components of Other Current Liabilities

Significant components of other current liabilities as of December 31 are summarized as follows:

(in thousands)	2013		2012
Deferred revenues	$	36,850		29,101
Dissenting shareholder liability*		25,723		—
Accrued expenses		24,236		30,963
Dividends payable		19,508		729
Accrued income taxes		6,410		10,936
Pass through expenses		8,379		8,532
Commissions		6,546		—
Other		37,036		20,021
Total	$	164,688		100,282

* Refer to Note 23 on acquisitions for additional information.

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Commitments and Contingencies - Additional Information (Detail) (USD $)	12 Months Ended						12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 29, 2011	Dec. 31, 2013 MetaBank	Dec. 31, 2013 Maximum	Dec. 31, 2013 Private Equity Funds	May 31, 2011 Private Equity Funds Maximum
Commitments and Contingencies Disclosure [Line Items]
Rental expense under all operating leases	$ 95,700,000	$ 99,000,000	$ 97,500,000
Estimated gross settlement exposure	8,800,000
Cardholder overdraft limit						10
Advance on behalf of cardholders					1,000,000
Cardholders' overdrawn account balances	13,800,000
Cardholders' loss reserve	5,800,000
Commitment to invest								20,000,000
Percentage of ownership interests				53.00%				50.00%
Investments							6,000,000
Recognized gain on investment	$ 966,000	$ 898,000					$ 1.8

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Subsequent Events - Additional Information (Detail) (Subsequent Event, Central Payment Co., LLC)	0 Months Ended
	Feb. 11, 2014
Subsequent Event | Central Payment Co., LLC
Subsequent Event [Line Items]
Percentage of Additional Equity Interest Acquired	15.00%
Noncontrolling interest	25.00%

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Summary of Stock Option Activity and Changes during Year (Parenthetical) (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock awards granted in connection with acquisition	1,939,796		818,090		716,508
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock awards granted in connection with acquisition	1,940,000	[1]	818,000	[1]	717,000	[1]
NetSpend Holdings Inc | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock awards granted in connection with acquisition	1,100,000
Market value of stock awarded granted in connection with acquisition	$ 13.7

[1] Includes the issuance of approximately 1.1 million stock option replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $13.7 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net income	$ 256,597	$ 249,923	$ 222,662
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	205,351	170,610	169,165
Deferred income tax expense	26,945	285	1,491
Share-based compensation	28,933	18,621	16,477
Dividends received from equity investments	8,595	7,524	6,835
Charges for transaction processing provisions	7,458	2,803	4,750
Amortization of debt issuance costs	7,269	298	160
Asset impairments			799
Provisions for fraud and other losses	11,912
Provisions for bad debt expenses and billing adjustments	2,000	1,054	1,552
(Gain) Loss on disposal of equipment, net	(79)	324	(1,159)
Amortization of bond discount	225
Loss on foreign currency	1,027	2,012	3,091
Changes in value of private equity investments	(966)	(898)
Excess tax expense (benefit) from share-based compensation	(3,528)	(1,259)	523
Equity in income of equity investments	(13,047)	(10,171)	(8,708)
Changes in operating assets and liabilities:
Accounts payable	(52,042)	37,206	(15,512)
Accounts receivable	(8,667)	2,855	(7,044)
Prepaid expenses, other current assets and other long-term assets	(571)	(2,945)	23,099
Accrued salaries and employee benefits	(403)	(7,083)	4,492
Other current liabilities and other long-term liabilities	(24,611)	(15,406)	13,646
Net cash provided by operating activities	452,398	455,753	436,319
Cash flows from investing activities:
Cash used in acquisitions, net of cash acquired	(1,314,660)	(188,698)	(47,909)
Additions to contract acquisition costs	(55,965)	(34,384)	(31,623)
Additions to licensed computer software from vendors	(63,635)	(33,001)	(19,502)
Purchases of property and equipment	(40,598)	(31,395)	(26,938)
Additions to internally developed computer software	(33,600)	(19,285)	(17,882)
Purchase of private equity investments	(1,378)	(3,031)	(1,573)
Subsidiary repurchase of noncontrolling interests			(493)
Proceeds from sale of trade name			4,500
Net cash used in investing activities	(1,509,836)	(309,794)	(141,420)
Cash flows from financing activities:
Proceeds from long-term borrowings	1,395,661	150,000
Proceeds from exercise of stock options	40,691	9,672	8,065
Excess tax expense (benefit) from share-based compensation	3,528	1,259	(523)
Subsidiary dividends paid to noncontrolling shareholders	(7,321)	(2,797)	(433)
Repurchase of common stock	(103,857)	(74,939)	(121,271)
Debt issuance costs	(13,573)	(2,073)
Dividends paid on common stock	(56,510)	(94,035)	(53,949)
Principal payments on long-term borrowings and capital lease obligations	(166,805)	(200,052)	(28,892)
Purchase of noncontrolling interest			(174,050)
Net cash provided by (used in) financing activities	1,091,814	(212,965)	(371,053)
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents	(3,758)	(1,719)	(2,304)
Net increase (decrease) in cash and cash equivalents	30,618	(68,725)	(78,458)
Cash and cash equivalents at beginning of period	247,612	316,337	394,795
Cash and cash equivalents at end of period	278,230	247,612	316,337
Supplemental cash flow information:
Interest paid	23,157	2,952	3,088
Income taxes paid, net	$ 80,033	$ 106,778	$ 82,084

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Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Reconciliation of Unrecognized Tax Benefits [Line Items]
Beginning balance	$ 9.0	[1]
Additions based on tax positions related to current year	0.7	[1]
Additions for tax positions of prior years	1.5	[1]
Reductions for tax positions of prior years	(6.0)	[1]
Settlements	(2.5)	[1]
Net, current activity	(6.3)	[1]
Ending balance	$ 2.7	[1]

[1] Unrecognized state tax liabilities are not adjusted for the federal tax impact.

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Revenues Derived from Affiliated Companies (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Related Party Transaction [Line Items]
Revenue	$ 297	$ 244	$ 198
CUP Data
Related Party Transaction [Line Items]
Revenue	229	172	136
TSYS de Mexico
Related Party Transaction [Line Items]
Revenue	$ 68	$ 72	$ 62

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Stock Purchase Plan Company's Contributions Charged to Expense (Detail) (Stock Repurchase Plan, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Stock Repurchase Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions charged to expense	$ 1,236	$ 1,140	$ 1,177

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Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2013

Schedule II Valuation and Qualifying Accounts

Schedule II

Schedule — Valuation and Qualifying Accounts

TOTAL SYSTEM SERVICES, INC.

Schedule II

Valuation and Qualifying Accounts

(in thousands)

			Additions
			Changes in
	Balance at		allowances, charges to						Balance at
	beginning		expenses and changes						end
	of period		to other accounts			Deductions			of period
Year ended December 31, 2011:
Provision for doubtful accounts	$	1,982		1,899	(1)		(1,773	)(3)	$	2,108
Provision for billing adjustments	$	2,560		(347	)(1)		(176	)(3)	$	2,037
Transaction processing accruals - processing errors	$	5,140		3,763	(2)		(3,581	)(3)	$	5,322
Deferred tax valuation allowance	$	15,434		5,384	(5)		(1,611	)(6)	$	19,207
Year ended December 31, 2012:
Provision for doubtful accounts	$	2,108		2,045	(1)		(1,539	)(3)	$	2,614
Provision for billing adjustments	$	2,037		(991	)(1)		251	(3)	$	1,297
Transaction processing accruals - processing errors	$	5,322		2,803	(2)		(6,401	)(3)	$	1,724
Deferred tax valuation allowance	$	19,207		526	(5)		(333	)(6)	$	19,400
Year ended December 31, 2013:
Provision for doubtful accounts	$	2,614		2,375	(1)		(2,232	)(3)	$	2,757
Provision for billing adjustments	$	1,297		(376	)(1)		(294	)(3)	$	627
Transaction processing accruals - processing errors	$	1,724		7,458	(2)		(6,773	)(3)	$	2,409
Provision for fraud losses	$	—		19,737	(1),(4)		(13,953	)(3)	$	5,784
Deferred tax valuation allowance	$	19,400		549	(5)		—	(6)	$	19,949

(1) Amount reflected includes charges to (recoveries of) bad debt expense which are classified in selling, general and administrative expenses and the charges for billing adjustment which are recorded against revenues.

(2) Amount reflected is the change in transaction processing accruals reflected in cost of services expenses.

(3) Accounts deemed to be uncollectible and written off during the year as it relates to bad debts. Amounts that relate to billing adjustments and transaction processing accruals reflect actual billing adjustments and processing errors charged against the allowances.

(4) Includes $7.8 million of fraud losses on July 1, 2013 related to the acquisition of NetSpend.

(5) Amount represents an increase in the amount of deferred tax assets, which more likely than not, will not be realized.

(6) Amount represents a decrease in the amount of deferred tax assets, which more likely than not, will not be realized.

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Summary of Consideration Paid and Recognized Amounts of Assets Acquired and Liabilities Assumed (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 Central Payment Co., LLC and ProPay	May 02, 2011 TermNet Merchant Services, Inc.
Business Acquisition [Line Items]
Cash and restricted cash				$ 3,003	$ 2,691
Accounts receivable				4,092	10,253
Other assets				12,522	1,516
Identifiable intangible assets				76,600	11,740
Goodwill	1,543,179	518,344	355,498	162,090	28,918
Accounts payable					(5,578)
Accrued compensation					(2,683)
Deferred tax liability					(4,506)
Other liabilities				(30,558)	(351)
Noncontrolling interest in acquired entity				(38,000)
Total consideration				$ 189,749	$ 42,000

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Changes in Carrying Amount of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended										12 Months Ended					12 Months Ended				12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2012 Central Payment Co., LLC	Dec. 31, 2013 ProPay	Dec. 31, 2012 ProPay	Dec. 31, 2013 NetSpend Holdings Inc	Jul. 01, 2013 NetSpend Holdings Inc	Dec. 31, 2013 North America Services	Dec. 31, 2012 North America Services	Dec. 31, 2011 North America Services	Dec. 31, 2013 International Services	Dec. 31, 2012 International Services	Dec. 31, 2013 Merchant Services	Dec. 31, 2012 Merchant Services	Dec. 31, 2011 Merchant Services	Dec. 31, 2012 Merchant Services Central Payment Co., LLC	Dec. 31, 2013 Merchant Services ProPay	Dec. 31, 2012 Merchant Services ProPay	Dec. 31, 2013 NetSpend	Dec. 31, 2013 NetSpend NetSpend Holdings Inc
Goodwill [Line Items]
Beginning Balance	$ 518,344	$ 355,498		$ 93,500			$ 1,024,434	$ 70,796	$ 70,796	$ 70,796	$ 33,944	$ 33,188	$ 413,748	$ 413,604	$ 251,514				$ 1,024,434
Purchase price allocation						1,024,434														1,024,434
Purchase price allocation			68,570	144	93,520											68,570	144	93,520
Currency translation adjustments	257	756									257	756
Ending Balance	$ 1,543,179	$ 518,344			$ 93,500	$ 1,000,000	$ 1,024,434	$ 70,796	$ 70,796	$ 70,796	$ 34,201	$ 33,944	$ 413,748	$ 413,604	$ 251,514				$ 1,024,434

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Income Taxes

12 Months Ended

Dec. 31, 2013

Income Taxes

NOTE 14 Income Taxes

The provision for income taxes includes income taxes currently payable and those deferred because of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities.

The components of income tax expense included in the Consolidated Statements of Income were as follows:

	Years Ended December 31,
(in thousands)	2013			2012			2011
Current income tax expense:
Federal	$	69,838			98,153			83,518
State		2,949			2,572			4,666
Foreign		12,637			14,092			12,922
Total current income tax expense		85,424			114,817			101,106
Deferred income tax expense (benefit):
Federal		27,447			1,395			3,126
State		(55	)		411			61
Foreign		(447	)		(1,521	)		(1,696	)
Total deferred income tax expense		26,945			285			1,491
Total income tax expense	$	112,369			115,102			102,597

	Years Ended December 31,
(in thousands)	2013		2012		2011
Components of income before income tax expense:
Domestic	$	327,801		320,581		279,416
Foreign		28,118		34,273		37,135
Total income before income tax expense	$	355,919		354,854		316,551

Income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate of 35% to income before income taxes, noncontrolling interest and equity in income of equity investments as a result of the following:

	Years Ended December 31,
(in thousands)	2013			2012			2011
Computed “expected” income tax expense	$	124,572			124,199			110,793
Increase (decrease) in income tax expense resulting from:
International tax rate differential		3,228			2,781			1,831
State income tax expense, net of federal income tax effect		3,495			2,143			3,164
Increase in valuation allowance		549			193			3,773
Tax credits		(6,148	)		(3,762	)		(9,044	)
Deduction for domestic production activities		(8,225	)		(5,727	)		(5,524	)
Permanent differences and other, net		(5,102	)		(4,725	)		(2,396	)
Total income tax expense	$	112,369			115,102			102,597

Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability as of December 31, 2013 and 2012 relate to the following:

(in thousands)	2013			2012
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$	30,872			24,405
Allowances for doubtful accounts and billing adjustments		728			644
Deferred revenue		20,111			18,645
Other, net		45,705			41,348
Total deferred income tax assets		97,416			85,042
Less valuation allowance for deferred income tax assets		(19,949	)		(19,400	)
Net deferred income tax assets		77,467			65,642
Deferred income tax liabilities:
Excess tax over financial statement depreciation		(45,709	)		(36,682	)
Computer software development costs		(55,074	)		(39,637	)
Purchase accounting adjustments		(168,689	)		(4,514	)
Foreign currency translation		(10,291	)		(8,574	)
Other, net		(5,821	)		(9,150	)
Total deferred income tax liabilities		(285,584	)		(98,557	)
Net deferred income tax liabilities	$	(208,117	)		(32,915	)
Total net deferred tax assets (liabilities):
Current	$	14,770			9,825
Noncurrent		(222,887	)		(42,740	)
Net deferred income tax liability	$	(208,117	)		(32,915	)

As of December 31, 2013, TSYS had recognized deferred tax assets from net operating losses, capital losses and federal and state income tax credit carryforwards of $18.2 million, $1.9 million and $10.8 million, respectively. As of December 31, 2012, TSYS had recognized deferred tax assets from net operating losses, capital losses and federal and state income tax credit carry forwards of $13.4 million, $1.9 million and $9.1 million, respectively. Some of the net operating losses and some of the tax credits began expiring in 2012.

In assessing the realizability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

Management believes it is more likely than not that TSYS will realize the benefits of these deductible differences, net of existing valuation allowances. The valuation allowance for deferred tax assets was $19.9 million and $19.4 million as of December 31, 2013 and 2012, respectively. The increase in the valuation allowance for deferred income tax assets was $0.5 million for 2013. The increase in the valuation allowance for deferred income tax assets was $0.2 million for 2012. The increase relates to foreign losses and state tax credits which, more likely than not, will not be realized in later years.

TSYS has adopted the permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain foreign subsidiaries. As a result, TSYS considers foreign earnings related to these foreign operations to be permanently reinvested. No provision for U.S. federal and state incomes taxes has been made in the consolidated financial statements for those non-U.S. subsidiaries whose earnings are considered to be reinvested. The amount of undistributed earnings considered to be “reinvested” which may be subject to tax upon distribution was approximately $79.0 million as of December 31, 2013. Although TSYS does not intend to repatriate these earnings, a distribution of these non-U.S. earnings in the form of dividends, or otherwise, would subject the Company to both U.S. federal and state income taxes, as adjusted for non-U.S. tax credits, and withholding taxes payable to the various non-U.S. countries. Determination of the amount of any unrecognized deferred income tax liability on these undistributed earnings is not practicable.

TSYS is the parent of an affiliated group that files a consolidated U.S. federal income tax return and most state and foreign income tax returns on a separate entity basis. In the normal course of business, the Company is subject to examinations by these taxing authorities unless statutory examination periods lapse. TSYS is no longer subject to U.S. federal income tax examinations for years before 2009 and with few exceptions, the Company is no longer subject to income tax examinations from state and local or foreign tax authorities for years before 2005. There are currently federal income tax examinations in progress for the years 2009 and 2010 for a subsidiary which was acquired this year. Additionally, a number of tax examinations are in progress by the relevant state tax authorities. Although TSYS is unable to determine the ultimate outcome of these examinations, TSYS believes that its recorded liability for uncertain tax positions relating to these jurisdictions for such years is adequate.

TSYS adopted the provisions of ASC 740 on January 1, 2007 which prescribes a recognition threshold and measurement attribute for the financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken in a tax return. During the year ended December 31, 2013, TSYS decreased its liability for prior year uncertain income tax positions as a discrete item by a net amount of approximately $6.3 million (net of the federal tax effect). This decrease resulted from refunds received and TSYS reassessing its tax positions. The Company is not able to reasonably estimate the amount by which the liability will increase or decrease over time; however, at this time, the Company does not expect any significant changes related to these obligations within the next twelve months.

A reconciliation of the beginning and ending amount of unrecognized tax liabilities is as follows ¹:

(in millions)	Year Ended December 31, 2013
Beginning balance	$	9.0
Current activity:
Additions based on tax positions related to current year		0.7
Additions for tax positions of prior years		1.5
Reductions for tax positions of prior years		(6.0	)
Settlements		(2.5	)
Net, current activity		(6.3	)
Ending balance	$	2.7

1 Unrecognized state tax liabilities are not adjusted for the federal tax impact.

TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the Consolidated Statements of Income. Gross accrued interest and penalties on unrecognized tax benefits totaled $0.3 million and $0.9 million as of December 31, 2013 and December 31, 2012, respectively. The total amounts of unrecognized income tax benefits as of December 31, 2013 and December 31, 2012 that, if recognized, would affect the effective tax rates are $2.8 million and $8.8 million (net of the federal benefit on state tax issues), respectively, which includes interest and penalties of $0.2 million and $0.7 million, respectively.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION:    The accompanying consolidated financial statements, which are prepared in accordance with generally accepted accounting principles (GAAP) include the accounts of TSYS and its wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities as defined in accordance with the provisions of Accounting Standards Codification (ASC) 810, “Consolidation,” and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810.

RISKS AND UNCERTAINTIES AND USE OF ESTIMATES

RISKS AND UNCERTAINTIES AND USE OF ESTIMATES:    Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, lower than anticipated growth from existing clients, an inability to attract new clients and grow internationally, loss of a major customer or other significant client, loss of a major supplier, an inability to grow through acquisitions or successfully integrate acquisitions, an inability to control expenses, technology changes, the impact of the application of and/or changes in accounting principles, financial services consolidation, changes in regulatory requirements, a decline in the use of cards as a payment mechanism, disruption of the Company’s international operations, breach of the Company’s security systems, a decline in the financial stability of the Company’s clients and uncertain economic conditions. Negative developments in these or other risk factors could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

The Company has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates and assumptions are developed based upon all information available. Actual results could differ from estimated amounts.

ACQUISITIONS - PURCHASE PRICE ALLOCATION

ACQUISITIONS — PURCHASE PRICE ALLOCATION:    TSYS’ purchase price allocation methodology requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities. TSYS estimates the fair value of assets and liabilities based upon appraised market values, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses. Management determines the fair value of fixed assets and identifiable intangible assets such as developed technology or customer relationships, and any other significant assets or liabilities. TSYS adjusts the purchase price allocation, as necessary, up to one year after the acquisition closing date as TSYS obtains more information regarding asset valuations and liabilities assumed. Unanticipated events or circumstances may occur which could affect the accuracy of the Company’s fair value estimates, including assumptions regarding industry economic factors and business strategies, and result in an impairment or a new allocation of purchase price.

Given its history of acquisitions, TSYS may allocate part of the purchase price of future acquisitions to contingent consideration as required by GAAP for business combinations. The fair value calculation of contingent consideration will involve a number of assumptions that are subjective in nature and which may differ significantly from actual results. TSYS may experience volatility in its earnings to some degree in future reporting periods as a result of these fair value measurements.

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS:    Cash on hand and investments with a maturity of three months or less when purchased are considered to be cash equivalents.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE:    Accounts receivable balances are stated net of allowances for doubtful accounts and billing adjustments.

TSYS records an allowance for doubtful accounts when it is probable that the accounts receivable balance will not be collected. When estimating the allowance for doubtful accounts, the Company takes into consideration such factors as its day-to-day knowledge of the financial position of specific clients, the industry and size of its clients, the overall composition of its accounts receivable aging, prior history with specific customers of accounts receivable write-offs and prior experience of allowances in proportion to the overall receivable balance. This analysis includes an ongoing and continuous communication with its largest clients and those clients with past due balances. A financial decline of any one of the Company’s large clients could have a material adverse effect on collectability of receivables and thus the adequacy of the allowance for doubtful accounts.

Increases in the allowance for doubtful accounts are recorded as charges to bad debt expense and are reflected in selling, general and administrative expenses in the Company’s Consolidated Statements of Income. Write-offs of uncollectible accounts are charged against the allowance for doubtful accounts.

TSYS records an allowance for billing adjustments for actual and potential billing discrepancies. When estimating the allowance for billing adjustments, the Company considers its overall history of billing adjustments, as well as its history with specific clients and known disputes. Increases in the allowance for billing adjustments are recorded as a reduction of revenues in the Company’s Consolidated Statements of Income and actual adjustments to invoices are charged against the allowance for billing adjustments.

UP-FRONT DISTRIBUTOR PAYMENTS

UP-FRONT DISTRIBUTOR PAYMENTS:    The Company makes up-front contractual payments to third-party distribution partners. The Company assesses each up-front payment to determine whether it meets the criteria of an asset as defined by U.S. GAAP. If these criteria are met, the Company capitalizes the up-front payment and recognizes the capitalized amount as expense ratably over the benefit period, which is generally the contract period. If the contract requires the distributor to perform specific acts (i.e. achieve a sales goal) and no other conditions exist for the distributor to earn

or retain the up-front payment, then the Company capitalizes the payment and recognizes it as an expense when the performance conditions have been met. Up-front distributor payments are classified on the Consolidated Balance Sheet as other non-current assets and recorded as a cost of services in the Consolidated Statements of Income.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT:    Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over estimated useful lives of 5-40 years, computer and other equipment over estimated useful lives of 2-5 years, and furniture and other equipment over estimated useful lives of 3-15 years. The Company evaluates impairment losses on long-lived assets used in operations in accordance with the provisions of ASC 360, “Property Plant and Equipment.”

All ordinary repairs and maintenance costs are expensed as incurred. Maintenance costs that extend the asset life are capitalized and amortized over the remaining estimated life of the asset.

LICENSED COMPUTER SOFTWARE

LICENSED COMPUTER SOFTWARE:    The Company licenses software that is used in providing services to clients. Licensed software is obtained through perpetual licenses and site licenses and through agreements based on processing capacity (called “MIPS agreements”). Perpetual and site licenses are amortized using the straight-line method over their estimated useful lives which range from three to ten years. Software licensed under MIPS agreements is amortized using a units-of-production basis over the estimated useful life of the software, generally not to exceed ten years. At each balance sheet date, the Company evaluates impairment losses on long-lived assets used in operations in accordance with ASC 360.

ACQUISITION TECHNOLOGY INTANGIBLES

ACQUISITION TECHNOLOGY INTANGIBLES:     These identifiable intangible assets are software technology assets resulting from acquisitions. These assets are amortized using the straight-line method over periods not exceeding their estimated useful lives, which range from five to nine years. The provisions of ASC 350, “Intangibles — Goodwill and Other,” require that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment in accordance with ASC 360. Acquisition technology intangibles’ net book values are included in computer software, net in the accompanying balance sheets. Amortization expenses are charged to cost of services in the Company’s Consolidated Statements of Income.

SOFTWARE DEVELOPMENT COSTS

SOFTWARE DEVELOPMENT COSTS:    In accordance with the provisions of ASC 985, “Software,” software development costs are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. At each balance sheet date, the Company evaluates the unamortized capitalized costs of software development as compared to the net realizable value of the software product which is determined by future undiscounted net cash flows. The amount by which the unamortized software development costs exceed the net realizable value is written off in the period that such determination is made. Software development costs are amortized using the greater of (1) the straight-line method over its estimated useful life, which ranges from three to ten years or (2) the ratio of current revenues to total anticipated revenue over its useful life.

The Company also develops software that is used internally. These software development costs are capitalized based upon the provisions of ASC 350. Internal-use software development costs are capitalized once: (1) the preliminary project stage is completed, (2) management authorizes and commits to funding a computer software project, and (3) it is probable that the project will be completed and the software will be used to perform the function intended. Costs incurred prior to meeting the qualifications are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. Internal-use software development costs are amortized using the straight-line method over its estimated useful life which ranges from three to ten years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of the planned project becoming doubtful or due to technological obsolescence of the planned software product.

CONTRACT ACQUISITION COSTS

CONTRACT ACQUISITION COSTS:    The Company capitalizes contract acquisition costs related to signing or renewing long-term contracts. The Company capitalizes internal conversion costs in accordance with the provisions of Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition” and ASC 605, “Revenue Recognition.” The capitalization of costs related to cash payments for rights to provide processing services is capitalized in accordance with the provisions of ASC 605. All costs incurred prior to a signed agreement are expensed as incurred.

Contract acquisition costs are amortized using the straight-line method over the expected customer relationship (contract term) beginning when the client’s cardholder accounts are converted and producing revenues. The amortization of contract acquisition costs associated with cash payments for client incentives is included as a reduction of revenues in the Company’s Consolidated Statements of Income. The amortization of contract acquisition costs associated with conversion activity is recorded as cost of services in the Company’s Consolidated Statements of Income.

The Company evaluates the carrying value of contract acquisition costs associated with each customer for impairment on the basis of whether these costs are fully recoverable from either contractual minimum fees (contractual costs) or from expected undiscounted net operating cash flows of the related contract (cash incentives paid). The determination of expected undiscounted net operating cash flows requires management to make estimates. These costs may become impaired with the loss of a contract, the financial decline of a client, termination of conversion efforts after a contract is signed, diminished prospects for current clients or if the Company’s actual results differ from its estimates of future cash flows. The amount of the impairment is written off in the period that such a determination is made.

EQUITY INVESTMENTS

EQUITY INVESTMENTS:    TSYS’ 49% investment in Total System Services de México, S.A. de C.V. (TSYS de México), an electronic payment processing support operation located in Toluca, Mexico, is accounted for using the equity method of accounting, as is TSYS’ 44.56% investment in China UnionPay Data Co., Ltd. (CUP Data) headquartered in Shanghai, China. TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments.

GOODWILL

GOODWILL:    Goodwill results from the excess of cost over the fair value of net assets of businesses acquired.

Goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually in accordance with the provisions of ASC 350. ASC 350 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values.

The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with the provisions of ASC 323,“Investments — Equity Method and Joint Ventures,” shall not be amortized. However, equity method goodwill shall not be reviewed for impairment in accordance with ASC 350, but instead should continue to be reviewed for impairment in accordance with paragraph 19(h) of ASC 323. Equity method goodwill, which is not reported as goodwill in the Company’s Consolidated Balance Sheet, but is reported as a component of the equity investment, was $52.7 million as of December 31, 2013.

OTHER INTANGIBLE ASSETS

OTHER INTANGIBLE ASSETS:    Identifiable intangible assets relate primarily to customer relationships, databases, channel relationships, covenants-not-to-compete, trade names and trade associations resulting from acquisitions. These identifiable intangible assets are amortized using the straight-line method over periods not exceeding the estimated useful lives, which range from three to ten years. ASC 350 requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 360. Amortization expenses are charged to selling, general and administrative expenses in the Company’s Consolidated Statements of Income.

FAIR VALUES OF FINANCIAL INSTRUMENTS

FAIR VALUES OF FINANCIAL INSTRUMENTS:    The Company uses financial instruments in the normal course of its business. The carrying values of cash equivalents, accounts receivable, accounts payable, accrued salaries and employee benefits, and other current liabilities approximate their fair value due to the short-term maturities of these assets and liabilities. The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value.

Investments in equity investments are accounted for using the equity method of accounting and pertain to privately held companies for which fair value is not readily available. The Company believes the fair values of its investments in equity investments exceed their respective carrying values.

IMPAIRMENT OF LONG-LIVED ASSETS

IMPAIRMENT OF LONG-LIVED ASSETS:    In accordance with ASC 360, the Company reviews long-lived assets, such as property and equipment and intangibles subject to amortization, including contract acquisition costs and certain computer software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If upon a triggering event the Company determines that the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.

TRANSACTION PROCESSING PROVISIONS

TRANSACTION PROCESSING PROVISIONS:    The Company has recorded an accrual for contract contingencies (performance penalties) and processing errors. A significant number of the Company’s contracts with large clients contain service level agreements which can result in TSYS incurring performance penalties if contractually required service levels are not met. When providing for these accruals, the Company takes into consideration such factors as the prior history of performance penalties and processing errors incurred, actual contractual penalties inherent in the Company’s contracts, progress towards milestones and known processing errors not covered by insurance.

These accruals are included in other current liabilities in the accompanying Consolidated Balance Sheets. Increases and decreases in transaction processing provisions are charged to cost of services in the Company’s Consolidated Statements of Income, and payments or credits for performance penalties and processing errors are charged against the accrual.

REDEEMABLE NONCONTROLLING INTEREST

REDEEMABLE NONCONTROLLING INTEREST:    In connection with the acquisition of CPAY, the Company is party to call and put arrangements with respect to the membership units that represent the remaining noncontrolling interest of CPAY. The call arrangement is exercisable by TSYS and the put arrangement is exercisable by the seller. The put arrangement is outside the control of the Company by requiring the Company to purchase the seller’s entire equity interest in CPAY at a put price at fair market value. The put arrangement is recorded on the balance sheet and is classified as redeemable noncontrolling interest outside of permanent equity.

NONCONTROLLING INTEREST

NONCONTROLLING INTEREST:    Noncontrolling interest in earnings of subsidiaries represents the minority shareholders’ share of the net income or loss of GP Network Corporation (GP Net), TSYS Managed Services EMEA Ltd. (TSYS Managed Services) and CPAY. The noncontrolling interest in the Consolidated Balance Sheet reflects the original investment by these shareholders in GP Net and TSYS Managed Services, their proportional share of the earnings or losses and their proportional share of net gains or losses resulting from the currency translation of assets and liabilities of GP Net and TSYS Managed Services. TSYS has adopted the accounting policy to recognize gains or losses on equity transactions of a subsidiary as a capital transaction.

CARDHOLDERS' RESERVE

CARDHOLDERS’ RESERVE:    The Company is exposed to losses due to cardholder fraud, payment defaults and other forms of cardholder activity as well as losses due to non-performance of third parties who receive cardholder funds for transmittal to the Issuing Banks (banks that issue MasterCard International or Visa USA, Inc. branded cards to customers). The Company establishes a reserve for the losses it estimates will arise from processing customer transactions, debit card overdrafts, chargebacks for unauthorized card use and merchant-related chargebacks due to non-delivery of goods and services. These reserves are established based upon historical loss and recovery rates and cardholder activity for which specific losses can be identified. The cardholders’ reserve was approximately $5.8 million as of December 31, 2013. The Company regularly updates its reserve estimate as new facts become known and events occur that may impact the settlement or recovery of losses.

PROVISION FOR MERCHANT LOSSES

PROVISION FOR MERCHANT LOSSES:    The Company has potential liability for losses resulting from disputes between a cardholder and a merchant

that arise as a result of, among other things, the cardholder’s dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. If the merchant is unable to fund the refund, TSYS must do so. TSYS also bears the risk of reject losses arising from the fact that TSYS collects fees from its merchants on the first day after the monthly billing period. If the merchant has gone out of business during such period, TSYS may be unable to collect such fees. TSYS maintains cash deposits or requires the pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. Most chargeback and reject losses are charged to cost of services as they are incurred. However, the Company also maintains a provision against losses, including major fraud losses, which are both less predictable and involve larger amounts. The loss provision was established using historical loss rates, applied to recent bankcard processing volume. As of December 31, 2013, the Company had a loss provision in the amount of $991,000.

FOREIGN CURRENCY TRANSLATION

FOREIGN CURRENCY TRANSLATION:    The Company maintains several different foreign operations whose functional currency is their local currency. Foreign currency financial statements of the Company’s Mexican and Chinese equity investments, the Company’s wholly owned subsidiaries and the Company’s majority owned subsidiaries, as well as the Company’s division and branches in the United Kingdom and China, are translated into U.S. dollars at current exchange rates, except for revenues, costs and expenses, and net income which are translated at the average exchange rates for each reporting period. Net gains or losses resulting from the currency translation of assets and liabilities of the Company’s foreign operations, net of tax when applicable, are accumulated in a separate section of shareholders’ equity titled accumulated other comprehensive income (loss). Gains and losses on transactions denominated in currencies other than the functional currencies are included in determining net income for the period in which exchange rates change.

TREASURY STOCK

TREASURY STOCK:    The Company uses the cost method when it purchases its own common stock as treasury shares or issues treasury stock upon option exercises and displays treasury stock as a reduction of shareholders’ equity.

REVENUE RECOGNITION

REVENUE RECOGNITION:    The Company recognizes revenues in accordance with the provisions of SAB No. 104. SAB No. 104 sets forth guidance as to when revenue is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience.

The Company’s North America and International Services revenues are derived from long-term processing contracts with financial and nonfinancial institutions and are generally recognized as the services are performed. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements mailed, cards embossed and mailed and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual revenue minimums, penalties for early termination, and service level agreements which may impact contractual fees if certain service levels are not achieved.

Revenue is recognized as the services are performed, primarily on a per unit basis. Processing contracts generally range from three to ten years in length. When providing payment processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, web-based services, and other payment processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract.

The Company’s Merchant Services revenues are derived from long-term processing contracts with large financial institutions, other merchant acquirers and merchant organizations which generally range from three to eight years and provide for penalties for early termination. Merchant services revenue is generated primarily from processing all payment forms including credit, debit, electronic benefits transfer and check truncation for merchants of all sizes across a wide array of retail market segments. The products and services offered include authorization and capture of electronic transactions, clearing and settlement of electronic transactions, information reporting services related to electronic transactions, merchant billing services, and point-of-sale terminal services. Revenue is recognized for merchant services as those services are performed, primarily on a per unit basis. When providing merchant processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, terminal services, and other merchant processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract. Revenues on point-of-sale terminal equipment are recognized upon the transfer of ownership and shipment of product.

When a sale involves multiple deliverables, revenue recognition is affected by the determination of the number of deliverables in an arrangement, whether those deliverables may be separated into separate units of accounting, and the valuation of each unit of accounting which affects the amount of revenue allocated to each unit. Pursuant to ASC 605, the Company uses vendor-specific objective evidence of selling price (VSOE) when it exists to determine the amount of revenue to allocate to each unit of accounting. The Company establishes VSOE of selling price using the price charged when the same service is sold separately. In certain situations, the Company does not have sufficient VSOE. In these situations, TSYS considered whether sufficient third party evidence (TPE) of selling price existed for the Company’s services. However, the Company typically is not able to determine TPE and has not used this measure of selling price due to the unique and proprietary nature of some of its services and the inability to reliably verify relevant standalone competitor prices. When there is insufficient evidence of VSOE and TPE, the Company has made its best estimate of the standalone selling price (ESP) of that service for purposes of allocating revenue to each unit of accounting. When determining ESP, TSYS uses limited standalone sales data that do not meet the Company’s criteria to establish VSOE, management pricing strategies, residual selling price data when VSOE exists for a group of elements, and margin objectives. Consideration is also given to geographies in which the services are sold or delivered, customer classifications, and market conditions including competitor pricing strategies and benchmarking studies. Revenue is recognized when the revenue recognition criteria for each unit of accounting have been met.

As business and service offerings change in the future, the determination of the number of deliverables in an arrangement and related units of accounting and the future pricing practices may result in changes in the estimates of VSOE and ESP, which may change the ratio of fees allocated to each service or unit of accounting in a given customer arrangement. There were no material changes or impact to revenue in revenue recognition in the year ended December 31, 2013 due to any changes in the determination of the number of deliverables in an arrangement, units of accounting, or estimates of VSOE or ESP.

In many situations, the Company enters into arrangements with customers to provide conversion or implementation services in addition to processing services where the conversion or implementation services do not have standalone value. In these situations, the deliverables do not meet the criteria of ASC 605-25 for separation and the deliverables are combined as a single unit of accounting for revenue recognition. For these arrangements, conversion or implementation services that do not have standalone value, are recognized over the expected customer relationship (contract term) contract term as the related processing services are performed.

The Company’s other services generally have standalone value and constitute separate units of accounting for revenue recognition purposes. However, customer arrangements entered into prior to January 1, 2011 often included services for which sufficient objective and reliable evidence of fair value did not exist. In certain situations, sufficient objective and reliable evidence of fair value did not exist for multiple undelivered services, and the deliverables were combined and recognized as a single unit of accounting based on the proportional performance for the combined unit. Beginning on January 1, 2011, services in new or materially modified arrangements of this nature are now divided into separate units of accounting and revenue is allocated to each unit based on the relative selling price method. As the services in these arrangements are generally delivered over the same term with consistent patterns of performance, there is no change in the timing or pattern of revenue recognition upon adoption of Accounting Standard Update (ASU) 2009-13, “Multiple-Deliverable Revenue Arrangements,” an update to ASC Topic 605, “Revenue Recognition,” and formerly known as EITF 08-1, “Revenue Arrangements with Multiple Deliverables”, nor does it have a material effect on revenue recognition for these arrangements in future periods.

The Company’s multiple element arrangements may include one or more elements that are subject to other topics including software revenue recognition and leasing guidance. The consideration for these multiple element arrangements is allocated to each group of deliverables – those subject to ASC 605-25 and those subject to other topics based on the revised guidance in ASU 2009-13. Arrangement revenue for each group of deliverables is then further separated, allocated, and recognized based on applicable guidance.

The Company’s NetSpend revenues principally consist of a portion of the service fees and interchange revenues received by the Issuing Banks in connection with the programs NetSpend manages. Revenue is recognized when there is persuasive evidence of an arrangement, the relevant services have been rendered, the price is fixed or determinable and collectability is reasonably assured.

Cardholders are charged fees in connection with NetSpend’s products and services as follows:

• Transactions — Cardholders are typically charged a fee for each PIN and signature-based purchase transaction made using their GPR cards, unless the cardholder is on a monthly or annual service plan, in which case the cardholder is instead charged a monthly or annual subscription fee, as applicable. Cardholders are also charged fees for ATM withdrawals and other transactions conducted at ATMs.

• Customer Service and Maintenance — Cardholders are typically charged fees for balance inquiries made through NetSpend’s call centers. Cardholders are also charged a monthly maintenance fee after a specified period of inactivity.

• Additional Products and Services — Cardholders are charged fees associated with additional products and services offered in connection with certain of the GPR cards, including the use of overdraft features, a variety of bill payment options, custom card designs and card-to-card transfers of funds initiated through NetSpend’s call centers.

• Other — Cardholders are charged fees in connection with the acquisition and reloading of the GPR cards at retailers and the Company receives a portion of these amounts in some cases.

Revenue resulting from the service fees charged to the cardholders described above is recognized when the fees are charged because the earnings process is substantially complete, except for revenue resulting from the initial activation of cards and annual subscription fees. Revenue resulting from the initial activation of cards is recognized ratably, net of commissions paid to the distributors, over the average account life, which is approximately one year for GPR cards. Revenue resulting from annual subscription fees is recognized ratably over the annual period to which the fees relate.

NetSpend earns revenues from a portion of the interchange fees remitted by merchants when cardholders make purchases at their locations using their GPR cards. Subject to applicable law, interchange fees are fixed by the Networks. Interchange revenues are recognized net of sponsorship, licensing and processing fees charged by the Networks for services they provide in processing purchase transactions routed through them. Interchange revenue is recognized during the period that the purchase transactions occur. Also included in interchange revenue are fees earned from branding agreements with the Networks.

In regards to taxes assessed by a governmental authority imposed directly on a revenue producing transaction, the Company reports its revenues on a net basis.

REIMBURSABLE ITEMS

REIMBURSABLE ITEMS:    Reimbursable items consist of out-of-pocket expenses which are reimbursed by the Company’s clients. These expenses consist primarily of postage, access fees and third party software. The Company accounts for reimbursable items in accordance with the provisions of ASC 605.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION: ASC 718, “Compensation — Stock Compensation.” establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. ASC 718 requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award.

ASC 718 is effective for all awards granted on or after January 1, 2006, and to awards modified, repurchased or cancelled after that date. ASC 718 requires the Company to recognize compensation costs for the nonvested portion of outstanding share-based compensation granted in the form of stock options based on the grant-date fair value of those awards calculated under the provisions of ASC 718, for pro forma disclosures. Share-based compensation expenses include the impact of expensing the fair value of stock options, as well as expenses associated with nonvested shares. TSYS adopted the provisions of ASC 718 effective January 1, 2006 using the modified-prospective-transition method.

ASC 718 requires companies to estimate forfeitures when recognizing compensation cost. The estimate of forfeitures will be adjusted by the Company as actual forfeitures differ from its estimates, resulting in compensation cost only for those awards that actually vest. The effect of the change in estimated forfeitures is recognized as compensation costs in the period the change in estimate occurred. In estimating its forfeiture rate, the Company stratified its data based upon historical experience to determine separate forfeiture rates for the different award grants. The Company currently estimates a forfeiture rate for existing stock option grants to TSYS non-executive employees, and a forfeiture rate for other TSYS share-based awards. Currently, TSYS estimates a forfeiture rate in the range of 0% to 10%.

The Company has issued vested awards to directors and nonvested awards to certain employees. The market value of the common stock at the date of issuance is recognized as compensation expense immediately for vested awards and over the vesting period of the nonvested awards. For nonvested award grants that have pro rata vesting, the Company recognizes compensation expense using the straight-line method over the vesting period of the award.

LEASES

LEASES:    The Company is obligated under noncancelable leases for computer equipment and facilities. As these leases expire, they will be evaluated and renewed or replaced by similar leases based on need. A lease is an agreement conveying the right to use property, plant, or equipment (land and/or depreciable assets) usually for a stated period of time. For purposes of applying the accounting and reporting standards, leases are classified from the standpoint of the lessee as capital or operating leases.

Rental payments on operating leases are charged to expense over the lease term. If rental payments are not made on a straight-line basis, rental expense nevertheless shall be recognized on a straight-line basis unless another systematic and rational basis is more representative of the time pattern in which use benefit is derived from the leased property, in which case that basis shall be used.

Certain of the Company’s operating leases are for office space. The Company will make various alterations (leasehold improvements) to the office space and capitalize these costs as part of property and equipment. Leasehold improvements are amortized on a straight-line basis over the useful life of the improvement or the term of the lease, whichever is shorter.

ADVERTISING

ADVERTISING:    Advertising costs, consisting mainly of advertising in trade publications, are expensed as incurred or the first time the advertising takes place except for direct-response advertising and television advertising production costs. Direct-response advertising consists of commission paid to affiliate marketers for the new funded customer accounts generated by them. Direct-response advertising costs are capitalized and amortized over the average life of the new accounts, which is approximately one year. Television advertising production costs consist of the costs of developing and filming television ads. Television advertising production costs are capitalized when the production services are received and expensed in the period when the advertising first takes place. Advertising expense for 2013, 2012 and 2011 was $1.3 million, $1.0 million and $813,000, respectively.

INCOME TAXES

INCOME TAXES:    Income taxes reflected in TSYS’ consolidated financial statements are computed based on the taxable income of TSYS and its affiliated subsidiaries. A consolidated U.S. federal income tax return is filed for TSYS and its majority owned U.S. subsidiaries. Additionally, income tax returns are also filed in states where TSYS and its subsidiaries have filing obligations and in foreign jurisdictions where TSYS has a foreign affiliate.

The Company accounts for income taxes in accordance with the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Reserves against the carrying value of a deferred tax asset are established when necessary to reflect the decreased likelihood of realization of a deferred asset in the future. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Income tax provisions require the use of management judgments, which are subject to challenge by various taxing authorities. Contingency reserves are periodically established where the amount of the contingency can be reasonably determined and is likely to occur. Reductions in contingency reserves are recognized when tax disputes are settled or examination periods lapse.

Significant estimates used in accounting for income taxes relate to the determination of taxable income, the determination of temporary differences between book and tax basis, as well as estimates on the realizability of tax credits and net operating losses.

TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the Consolidated Statements of Income.

EARNINGS PER SHARE

EARNINGS PER SHARE:    The guidance under ASC 260, “Earnings Per Share,” holds that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are “participating securities” as defined in ASC 260, and therefore should be included in EPS using the two-class method.

The two-class method is an earnings allocation method for computing EPS when an entity’s capital structure includes two or more classes of common stock or common stock and participating securities. It determines EPS based on dividends declared on common stock and participating securities and participation rights of participating securities in any undistributed earnings.

Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised. Diluted EPS is calculated by dividing net income by weighted average common and common equivalent shares outstanding. Common equivalent shares are calculated using the treasury stock method.

RECLASSIFICATIONS

RECLASSIFICATIONS:    Certain reclassifications have been made to the 2012 and 2011 financial statements to conform to the presentation adopted in 2013.

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Contributions Charged to Expense (Detail) (TSYS Retirement Savings Plan, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
TSYS Retirement Savings Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions charged to expense	$ 14,506	$ 13,421	$ 15,951

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Reconciliation of Geographic Revenues to Revenues by Operating Segment Based on Domicile of Company's Customers (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Total revenues	$ 2,132,353	$ 1,870,972	$ 1,808,966
United States
Segment Reporting Information [Line Items]
Total revenues	1,453,300	1,219,900	1,227,800
Europe
Segment Reporting Information [Line Items]
Total revenues	294,600	293,000	283,500
Canada
Segment Reporting Information [Line Items]
Total revenues	243,200	217,500	171,500
Japan
Segment Reporting Information [Line Items]
Total revenues	68,800	78,600	76,300
Mexico
Segment Reporting Information [Line Items]
Total revenues	16,500	11,700	7,800
Other
Segment Reporting Information [Line Items]
Total revenues	56,000	50,300	42,100
North America Services
Segment Reporting Information [Line Items]
Total revenues	986,200	945,800	930,700
North America Services | United States
Segment Reporting Information [Line Items]
Total revenues	711,400	705,500	741,500
North America Services | Europe
Segment Reporting Information [Line Items]
Total revenues	800	800	700
North America Services | Canada
Segment Reporting Information [Line Items]
Total revenues	243,000	217,300	171,100
North America Services | Mexico
Segment Reporting Information [Line Items]
Total revenues	16,500	11,700	7,800
North America Services | Other
Segment Reporting Information [Line Items]
Total revenues	14,500	10,500	9,600
International Services
Segment Reporting Information [Line Items]
Total revenues	403,600	410,100	390,900
International Services | Europe
Segment Reporting Information [Line Items]
Total revenues	293,800	292,200	282,800
International Services | Japan
Segment Reporting Information [Line Items]
Total revenues	68,800	78,600	76,300
International Services | Other
Segment Reporting Information [Line Items]
Total revenues	41,000	39,300	31,800
Merchant Services
Segment Reporting Information [Line Items]
Total revenues	534,700	515,100	487,400
Merchant Services | United States
Segment Reporting Information [Line Items]
Total revenues	533,900	514,400	486,300
Merchant Services | Canada
Segment Reporting Information [Line Items]
Total revenues	200	200	400
Merchant Services | Other
Segment Reporting Information [Line Items]
Total revenues	600	500	700
NetSpend
Segment Reporting Information [Line Items]
Total revenues	207,900
NetSpend | United States
Segment Reporting Information [Line Items]
Total revenues	$ 207,900

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2013

Employee Benefit Plans

NOTE 16 Employee Benefit Plans

The Company provides benefits to its employees by offering employees participation in certain defined contribution plans. The employee benefit plans through which TSYS provided benefits to its employees during 2013 are described as follows:

TSYS RETIREMENT SAVINGS PLAN:    TSYS maintains a single plan, the Retirement Savings Plan, which is designed to reward all team members of TSYS U.S.-based companies with a uniform employer contribution. The terms of the plan provide for the Company to match 100% of the employee contribution up to 4% of eligible compensation. The Company can make discretionary contributions up to another 4% based upon business conditions. The Company’s contributions to the plan charged to expense for the years ended December 31 are as follows:

(in thousands)	2013		2012		2011
TSYS Retirement Savings Plan	$	14,506		13,421		15,951

STOCK PURCHASE PLAN:    The Company maintains a stock purchase plan for employees and previously maintained a stock purchase plan for directors. The Company contributes 15% of employee contributions and contributed 15% of director voluntary contributions. The funds are used to purchase presently issued and outstanding shares of TSYS common stock on the open market at fair market value for the benefit of participants. The Director Stock Purchase Plan was terminated on November 30, 2011. The Company’s contributions to these plans charged to expense for the years ended December 31 are as follows:

(in thousands)	2013		2012		2011
TSYS Stock Purchase Plan	$	1,236		1,140		1,177

POSTRETIREMENT MEDICAL BENEFITS PLAN:    TSYS provides certain medical benefits to qualified retirees through a postretirement medical benefits plan, which is immaterial to the Company’s consolidated financial statements. The measurement of the benefit expense and accrual of benefit costs associated with the plan do not reflect the effects of the 2003 Medicare Act. Additionally, the benefit expense and accrued benefit cost associated with the plan, as well as any potential impact of the effects of the 2003 Medicare Act, are not significant to the Company’s consolidated financial statements.

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Weighted Average Useful Life for Each Component of Other Intangible Assets (Detail) (Other intangible assets)	12 Months Ended
	Dec. 31, 2013
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	7 years 7 months 6 days
Customer relationships
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	8 years 2 months 12 days
Trade association
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	10 years
Trade name
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	4 years 10 months 24 days
Channel relationships
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	8 years
Database
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	5 years
Favorable lease
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	4 years 10 months 24 days
Covenants-Not-to-Compete
Finite-Lived Intangible Assets And Liabilities [Line Items]
Weighted Average Amortization Period (Yrs)	5 years 3 months 18 days

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Summary of Awards Authorized (Detail) (Performance Shares)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Number of Shares Awarded	563,803	241,095	263,292
Potential Number of Performance-Based Shares to be Vested	563,803	458,082	403,521
Potential Number of Performance-Based Shares to be Vested period	2016	2015	2014

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Consolidated Statements of Changes in Equity (USD $) In Thousands	Total	Redeemable Noncontrolling Interests	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Retained Earnings	Noncontrolling Interests
Beginning Balance at Dec. 31, 2010	$ 1,257,805	$ 146,000	$ 20,133	$ 119,722	$ (2,585)	$ (115,449)	$ 1,219,303	$ 16,681
Beginning Balance (in shares) at Dec. 31, 2010			201,326
Net income	224,026	(1,364)					220,559	3,467
Other comprehensive income	2,730				2,112			618
Common stock issued from treasury shares for exercise of stock options (Note 18)	8,065			(3,450)		11,515
Common stock issued for nonvested awards (Note 18) (in shares)			534
Common stock issued for nonvested awards (Note 18)			53	(53)
Common stock issued from treasury shares for nonvested awards (Note 18)				(172)		172
Share-based compensation (Note 18)	16,513			16,513
Cash dividends declared ($0.40 in 2013, $0.40 in 2012 and $0.31 in 2011 per share)	(59,228)						(59,228)
Purchase of treasury shares (Note 19)	(121,272)					(121,272)
Adjustment to fair value of non-controlling interest in TMS	(6,828)	29,414		(6,828)
Redemption of redeemable noncontrolling interests		(174,050)
Subsidiary dividends paid to noncontrolling interests	(448)							(448)
Subsidiary repurchase of noncontrolling interests	(493)			77	28			(598)
Tax benefits or shortfalls associated with share-based compensation	139			139
Ending Balance at Dec. 31, 2011	1,321,009		20,186	125,948	(445)	(225,034)	1,380,634	19,720
Ending Balance (in shares) at Dec. 31, 2011			201,860
Net income	248,418	1,505					244,280	4,138
Other comprehensive income	517				1,853			(1,336)
Common stock issued from treasury shares for exercise of stock options (Note 18)	9,991			(2,386)		12,377
Common stock issued for nonvested awards (Note 18) (in shares)			611
Common stock issued for nonvested awards (Note 18)			61	(61)
Common stock issued from treasury shares for nonvested awards (Note 18)				(628)		628
Share-based compensation (Note 18)	18,623			18,623
Cash dividends declared ($0.40 in 2013, $0.40 in 2012 and $0.31 in 2011 per share)	(75,851)						(75,851)
Purchase of treasury shares (Note 19)	(75,272)					(75,272)
Subsidiary dividends paid to noncontrolling interests	(2,797)							(2,797)
Fair value of noncontrolling interest in CPAY		38,000
Tax benefits or shortfalls associated with share-based compensation	297			297
Ending Balance at Dec. 31, 2012	1,444,935	39,505	20,247	141,793	1,408	(287,301)	1,549,063	19,725
Ending Balance (in shares) at Dec. 31, 2012			202,471
Net income	250,081	6,515					244,750	5,331
Other comprehensive income	(413)				2,341			(2,754)
Replacement share-based awards issued in connection with acquisition (Note 18)	15,556			(1,167)		16,723
Common stock issued from treasury shares for exercise of stock options (Note 18)	40,691			(700)		41,391
Common stock issued for nonvested awards (Note 18) (in shares)			319
Common stock issued for nonvested awards (Note 18)			32	(32)
Common stock issued from treasury shares for nonvested awards (Note 18)				(5,747)		5,747
Share-based compensation (Note 18)	28,972			28,972
Common stock issued from treasury shares for dividend equivalents (Note 18)	498			36		301	161
Cash dividends declared ($0.40 in 2013, $0.40 in 2012 and $0.31 in 2011 per share)	(75,770)						(75,770)
Purchase of treasury shares (Note 19)	(103,857)					(103,857)
Subsidiary dividends paid to noncontrolling interests	(953)	(6,368)						(953)
Tax benefits or shortfalls associated with share-based compensation	2,686			2,686
Ending Balance at Dec. 31, 2013	$ 1,602,426	$ 39,652	$ 20,279	$ 165,841	$ 3,749	$ (326,996)	$ 1,718,204	$ 21,349
Ending Balance (in shares) at Dec. 31, 2013			202,790

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts receivable, allowances for doubtful accounts and billing adjustments	$ 3.4	$ 3.9
Common stock, par value	$ 0.10	$ 0.10
Common stock, Authorized	600,000	600,000
Common stock, issued	202,790	202,471
Common stock, outstanding	187,717	187,031
Treasury stock, shares	15,073	15,440

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Property and Equipment, net

12 Months Ended

Dec. 31, 2013

Property and Equipment, net

NOTE 9 Property and Equipment, net

Property and equipment balances as of December 31 are as follows:

(in thousands)	2013		2012
Computer and other equipment	$	274,987		247,506
Buildings and improvements		242,132		232,141
Furniture and other equipment		131,036		125,100
Land		17,021		16,920
Other		988		2,955
Total property and equipment		666,164		624,622
Less accumulated depreciation and amortization		400,948		364,233
Property and equipment, net	$	265,216		260,389

Depreciation and amortization expense related to property and equipment was $48.2 million, $46.3 million and $49.3 million for the years ended December 31, 2013, 2012 and 2011, respectively.

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Effect On TSYS' Shareholders' Equity From GP Net's Acquisition Of Treasury Shares (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Subsidiary, Sale of Stock [Line Items]
Increase in OCI	$ 28
Increase in additional paid in capital	77
Effect from change in noncontrolling interests	$ 105

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Temporary Differences between Financial Statement Carrying Amounts and Tax Bases of Assets and Liabilities that Give Rise to Significant Portions of Net Deferred Tax Liability (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$ 30,872,000	$ 24,405,000
Allowances for doubtful accounts and billing adjustments	728,000	644,000
Deferred revenue	20,111,000	18,645,000
Other, net	45,705,000	41,348,000
Total deferred income tax assets	97,416,000	85,042,000
Less valuation allowance for deferred income tax assets	(19,949,000)	(19,400,000)
Net deferred income tax assets	77,467,000	65,642,000
Deferred income tax liabilities:
Excess tax over financial statement depreciation	(45,709,000)	(36,682,000)
Computer software development costs	(55,074,000)	(39,637,000)
Purchase accounting adjustments	(168,689,000)	(4,514,000)
Foreign currency translation	(10,291,000)	(8,574,000)
Other, net	(5,821,000)	(9,150,000)
Total deferred income tax liabilities	(285,584,000)	(98,557,000)
Net deferred income tax liabilities	(208,117,000)	(32,915,000)
Total net deferred tax assets (liabilities):
Current	14,770,000	9,825,000
Noncurrent	(222,887,000)	(42,740,000)
Net deferred income tax liabilities	$ (208,117,000)	$ (32,915,000)

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Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Contingency [Line Items]
Statutory federal income tax rate	35.00%
Deferred tax assets from net operating losses carryforwards	$ 18,200,000	$ 13,400,000
Deferred tax assets from capital losses carryforwards	1,900,000	1,900,000
Deferred tax assets from federal and state income tax credit carryforwards	10,800,000	9,100,000
Tax credit carryforward beginning expiration year	2012
Operating loss carryforward beginning expiration date	2012
Valuation allowance for deferred income tax assets	19,949,000	19,400,000
Increase (decrease) in valuation allowance for deferred income tax assets	500,000	200,000
Undistributed earnings	79,000,000
Decrease in liability for prior year uncertain tax position	6,300,000
Gross accrued interest and penalties on unrecognized tax benefits	300,000	900,000
Unrecognized income tax benefits that, if recognized, would affect the effective tax rates	2,800,000	8,800,000
Unrecognized income tax benefits that, if recognized, would affect the effective tax rates , interest and penalties	$ 200,000	$ 700,000

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Revenues Based on Domicile of Company's Customers (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Total revenues	$ 2,132,353	$ 1,870,972	$ 1,808,966
Total revenues, percentage	100.00%	100.00%	100.00%
United States
Segment Reporting Information [Line Items]
Total revenues	1,453,300	1,219,900	1,227,800
Total revenues, percentage	68.20%	65.20%	67.90%
Europe
Segment Reporting Information [Line Items]
Total revenues	294,600	293,000	283,500
Total revenues, percentage	13.80%	15.70%	15.70%
Canada
Segment Reporting Information [Line Items]
Total revenues	243,200	217,500	171,500
Total revenues, percentage	11.40%	11.60%	9.50%
Japan
Segment Reporting Information [Line Items]
Total revenues	68,800	78,600	76,300
Total revenues, percentage	3.20%	4.20%	4.20%
Mexico
Segment Reporting Information [Line Items]
Total revenues	16,500	11,700	7,800
Total revenues, percentage	0.80%	0.60%	0.40%
Other
Segment Reporting Information [Line Items]
Total revenues	$ 56,000	$ 50,300	$ 42,100
Total revenues, percentage	2.60%	2.70%	2.30%

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Collaborative Arrangement - Additional Information (Detail)	Dec. 31, 2013
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of ownership interest in an enterprise jointly owned with two other entities	45.00%

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Segment Reporting, including Geographic Area Data and Major Customers - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended				12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Aug. 08, 2012 Central Payment Co., LLC	Dec. 31, 2011 Customer Concentration Risk Customer	Dec. 31, 2011 Customer Concentration Risk Sales Revenue, Net
Segment Reporting Information [Line Items]
Business acquisition percent of acquisition				60.00%
Entity-wide revenue, major customer, number					1
Entity-wide revenue, major customer, amount	$ 2,132,353	$ 1,870,972	$ 1,808,966			$ 210,900
Percentage of total revenues, by major customer						11.70%

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Feb. 21, 2014	Jun. 30, 2013
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Trading Symbol	TSS
Entity Registrant Name	TOTAL SYSTEM SERVICES INC
Entity Central Index Key	0000721683
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		187,858,119
Entity Public Float			$ 4,469,154,000

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Acquisitions - Additional Information (Detail) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	1 Months Ended	12 Months Ended			0 Months Ended					1 Months Ended	12 Months Ended	1 Months Ended							0 Months Ended	12 Months Ended			0 Months Ended	12 Months Ended			0 Months Ended						0 Months Ended	12 Months Ended	0 Months Ended
	May 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Feb. 01, 2012 Merchant Services	Oct. 01, 2011 Merchant Services	Dec. 31, 2013 Merchant Services	Dec. 31, 2012 Merchant Services	Dec. 31, 2011 Merchant Services	Jul. 01, 2013 NetSpend Holdings Inc Shareholder	Dec. 31, 2013 NetSpend Holdings Inc	Jul. 01, 2013 NetSpend Holdings Inc Minimum	Jul. 01, 2013 NetSpend Holdings Inc Maximum	Jul. 01, 2013 NetSpend Holdings Inc Prior To Acquisition Date	Jul. 01, 2013 NetSpend Holdings Inc Shareholders	Jul. 01, 2013 NetSpend Holdings Inc Holders of Stock Options and Awards	Jul. 01, 2013 NetSpend Holdings Inc Repayment of Revolving Credit Facility	Jul. 01, 2013 NetSpend Holdings Inc Replacement Stock Options and Awards	Aug. 08, 2012 Central Payment Co., LLC	Dec. 31, 2013 Central Payment Co., LLC	Aug. 08, 2012 Central Payment Co., LLC Intangible Assets	Aug. 08, 2012 Central Payment Co., LLC Trade Names and Technology	Feb. 11, 2014 Central Payment Co., LLC Subsequent Event	Dec. 31, 2012 Central Payment Co., LLC and ProPay	Dec. 31, 2012 Central Payment Co., LLC and ProPay Minimum	Dec. 31, 2012 Central Payment Co., LLC and ProPay Maximum	Dec. 26, 2012 ProPay	Dec. 31, 2012 ProPay	Dec. 26, 2012 ProPay Minimum	Dec. 26, 2012 ProPay Maximum	Dec. 26, 2012 ProPay Intangible Assets	Dec. 26, 2012 ProPay Trade Names and Technology	May 02, 2011 TermNet Merchant Services, Inc. Entity	Dec. 31, 2011 TermNet Merchant Services, Inc.	May 02, 2011 TermNet Merchant Services, Inc. Minimum	May 02, 2011 TermNet Merchant Services, Inc. Maximum
Business Acquisition [Line Items]
Business acquisition percent of acquisition										100.00%									60.00%
Business acquisition, cost of acquired entity, purchase price										$ 1,396,550,000																	$ 123,700,000
Business acquisition, cash paid										1,355,270,000					1,200,000,000	70,700,000	58,300,000		66,000,000														42,000,000
Replacement stock options and awards														11,100,000				15,600,000
Share price per share										$ 16.00
Shares held by dissenting shareholders										1,600
Value of shares held by dissenting shareholders										25,700,000
Number of shareholders										5
Replacement stock options and awards fair value										37,400,000				15,600,000
Goodwill		1,543,179,000	518,344,000	355,498,000			413,748,000	413,604,000	251,514,000	1,024,434,000	1,000,000,000													162,090,000				93,500,000					28,918,000
Intangible assets estimated useful life												5 years	8 years												2 years	10 years									2 years	10 years
Identifiable intangible assets										480,086,000	401,600,000													76,600,000									11,740,000
Assumption used in fair value, measurement, discount rate											11.00%								19.00%		19.50%						14.00%				14.50%		14.00%
Assumption used in fair value measurement, royalty rate low range											2.50%																						3.00%
Assumption used in fair value measurement, royalty rate high range											7.00%																						10.00%
Assumption used in fair value measurement,, attrition rate low range											5.00%
Assumption used in fair value measurement, attrition rate high range											40.00%
Assumption used in fair value, measurement, effective tax rate											40.00%								39.00%								39.00%						36.00%
Assumption used in fair value, measurement, long-term sustainable growth rate											3.00%								3.00%								3.00%						3.00%
Business acquisition, transaction costs											14,200,000
Business acquisition, purchase price allocation, goodwill, expected tax deductible amount																			68,600,000
Business acquisition, fair value of accounts receivable																								4,100,000									10,300,000
Business acquisition, gross amount of accounts receivable																								4,800,000									10,400,000
Business acquisition, expected uncollectible amount of accounts receivable																								688,000									100,000
Business acquisition, funds placed in escrow																			3,300,000								12,500,000						8,400,000
Business acquisition, escrowed consideration period																			21 months								18 months						18 months
Business acquisition, contingent consideration returnable																			9,900,000								12,500,000
Percentage of ownership interests by former owner before acquisition																			100.00%
Assumption used in fair value, measurement, royalty rate																						1.00%										1.00%
Assumption used in fair value, measurement, attrition rate																			25.00%										3.00%	5.00%			20.00%
Business acquisition, transaction costs		14,220,000	1,650,000	1,289,000																				1,300,000										192,000
Business acquisition, acquired intangible assets					1,700,000	2,600,000
Acquired intangible assets, weighted average useful lives					5 years	5 years				7 years 3 months 18 days														7 years 8 months 12 days									7 years 3 months 18 days
Business acquisition, noncontrolling interest, percentage																			40.00%
Business acquisition, noncontrolling interest, redemption period																				1 year
Business acquisition, noncontrolling interest, redemption value																				39,700,000
Percentage of Additional Equity Interest Acquired																							15.00%
Noncontrolling interest																							25.00%
Business acquisitions, number of merchants of business acquired																																	18,000
Payment of contingent merger consideration in connection with the purchase of Infonox	$ 6,000,000

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Contract Acquisition Costs, net

12 Months Ended

Dec. 31, 2013

Contract Acquisition Costs, net

Note 10 Contract Acquisition Costs, net

Significant components of contract acquisition costs as of December 31 are summarized as follows:

(in thousands)	2013		2012
Conversion costs, net	$	112,239		85,402
Payments for processing rights, net		72,651		75,865
Total	$	184,890		161,267

Amortization expense related to conversion costs was $19.6 million, $24.1 million and $18.8 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Amortization related to payments for processing rights, which is recorded as a reduction of revenues, was $13.1 million, $13.3 million and $15.9 million for the years ended December 31, 2013, 2012 and 2011, respectively.

The weighted average useful life for each component of contract acquisition costs, and in total, as of December 31, 2013 is as follows:

	Weighted Average Amortization Period (Yrs)
Payments for processing rights		12.8
Conversion costs		8.3
Total		11.4

Estimated future amortization expense of conversion costs and payments for processing rights as of December 31, 2013 for the next five years is:

(in thousands)	Conversion Costs		Payments for Processing Rights
2014	$	20,537		13,925
2015		28,201		13,358
2016		26,036		10,969
2017		20,678		8,917
2018		18,705		7,952

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Equity Investments - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Equity Method Investments [Line Items]
Equity in income of equity investments, net of tax	$ 13,047	$ 10,171	$ 8,708
Promocn Y Operacin, SA De CV
Schedule of Equity Method Investments [Line Items]
Equity method investment, percentage of ownership	49.00%
CUP Data
Schedule of Equity Method Investments [Line Items]
Equity method investment, percentage of ownership	44.56%

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Components of Income Tax Before Income Tax (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Components of income before income tax expense:
Domestic	$ 327,801	$ 320,581	$ 279,416
Foreign	28,118	34,273	37,135
Income before income taxes and equity in income of equity investments	$ 355,919	$ 354,854	$ 316,551

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Total revenues	$ 2,132,353	$ 1,870,972	$ 1,808,966
Cost of services	1,436,331	1,262,310	1,257,970
Selling, general and administrative expenses	295,555	249,360	227,251
Merger and acquisition expenses	14,220	1,650	1,289
Total operating expenses	1,746,106	1,513,320	1,486,510
Operating income	386,247	357,652	322,456
Nonoperating expenses, net	(1,108)	(2,798)	(5,905)
Merger and acquisition expenses-bridge loan facility and bonds	(29,220)
Income before income taxes and equity in income of equity investments	355,919	354,854	316,551
Income taxes (Note 14)	112,369	115,102	102,597
Income before equity in income of equity investments	243,550	239,752	213,954
Equity in income of equity investments, net of tax (Note 11)	13,047	10,171	8,708
Net income	256,597	249,923	222,662
Net income attributable to noncontrolling interests	(11,847)	(5,643)	(2,103)
Net income attributable to Total System Services, Inc. (TSYS) common shareholders	$ 244,750	$ 244,280	$ 220,559
Basic earnings per share (EPS) attributable to TSYS common shareholders (Note 25)	$ 1.30	$ 1.30	$ 1.15
Diluted EPS attributable to TSYS common shareholders (Note 25)	$ 1.29	$ 1.29	$ 1.15

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Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2013

Cash and Cash Equivalents

NOTE 4 Cash and Cash Equivalents

Cash and cash equivalent balances at December 31 are summarized as follows:

(in thousands)	2013		2012
Cash and cash equivalents in domestic accounts	$	192,468		152,373
Cash and cash equivalents in foreign accounts		85,762		95,239
Total	$	278,230		247,612

The Company maintains operating accounts outside the United States denominated in currencies other than the U.S. dollar. All amounts in domestic accounts are denominated in U.S. dollars.

As of December 31, 2013 and 2012, the Company had $5.0 million and $2.5 million, respectively, of cash and cash equivalents in Money Market accounts that had an original maturity date of 90 days or less.

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Relationships with Affiliated Companies

12 Months Ended

Dec. 31, 2013

Relationships with Affiliated Companies

NOTE 3 Relationships with Affiliated Companies

The Company provides electronic payment processing and other services to the Company’s equity investments, TSYS de México and CUP Data.

The foregoing related party services are performed under contracts that are similar to its contracts with unrelated third party customers. The Company believes the terms and conditions of transactions between the Company and these related parties are comparable to those which could have been obtained in transactions with unaffiliated parties.

Through its related party transactions, TSYS generates accounts receivable and liability accounts with TSYS de México and CUP Data. The Company had an accounts receivable balance of $7,400 and $7,500 associated with related parties as of December 31, 2013 and 2012, respectively. The Company had an accounts payable balance of $12,000 and $77,000 with related parties as of December 31, 2013 and 2012, respectively.

The table below details revenues derived from affiliated companies for the years ended December 31, 2013, 2012 and 2011:

(in thousands)	2013		2012		2011
Total revenues:
CUP Data	$	229		172		136
TSYS de México		68		72		62
Total revenues	$	297		244		198

The Company and TSYS de México are parties to an agreement where TSYS de México provides processing support to the Company. Processing support fees paid to TSYS de México were $148,000, $186,000 and $168,000 for the years ended December 31, 2013, 2012 and 2011, respectively.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies

NOTE 15 Commitments and Contingencies

LEASE COMMITMENTS:    TSYS is obligated under noncancelable operating leases for computer equipment and facilities.

The future minimum lease payments under noncancelable operating leases with remaining terms greater than one year for the next five years and thereafter and in the aggregate as of December 31, 2013, are as follows:

(in thousands)
2014	$	123,807
2015		121,904
2016		111,455
2017		43,517
2018		23,210
Thereafter		42,208
Total future minimum lease payments	$	466,101

The majority of computer equipment lease commitments come with a renewal option or an option to terminate the lease. These lease commitments may be replaced with new leases which allow the Company to continually update its computer equipment. Total rental expense under all operating leases in 2013, 2012 and 2011 was $95.7 million, $99.0 million and $97.5 million, respectively.

CONTRACTUAL COMMITMENTS:    In the normal course of its business, the Company maintains long-term processing contracts with its clients. These processing contracts contain commitments, including, but not limited to, minimum standards and time frames against which the Company’s performance is measured. In the event the Company does not meet its contractual commitments with its clients, the Company may incur penalties and certain clients may have the right to terminate their contracts with the Company. The Company does not believe that it will fail to meet its contractual commitments to an extent that will result in a material adverse effect on its financial position, results of operations or cash flows.

CONTINGENCIES:

Legal Proceedings — General

The Company is subject to various legal proceedings and claims and is also subject to information requests, inquiries and investigations arising out of the ordinary conduct of its business. The Company establishes reserves for litigation and similar matters when those matters present loss contingencies that TSYS determines to be both probable and reasonably estimable in accordance with ASC 450, “Contingencies.” In the opinion of management, based on current knowledge and in part upon the advice of legal counsel, all matters not specifically discussed below are believed to be adequately covered by insurance, or, if not covered, the possibility of losses from such matters are believed to be remote or such matters are of such kind or involve such amounts that would not have a material adverse effect on the financial position, results of operations or cash flows of the Company if disposed of unfavorably.

Settlement of Certain Litigation

As previously disclosed, a putative class action entitled Koehler v. NetSpend Holdings, Inc. et. al. (the “Koehler action”) was filed in the Court of Chancery of the State of Delaware on March 1, 2013 and a putative class action entitled Bushansky v. NetSpend Holdings, Inc. et al. (together with the Koehler action, the “Actions”) was filed in the District Court of Travis County, Texas on February 25, 2013, each in connection with TSYS’ proposed merger with NetSpend pursuant to the Merger Agreement. On May 21, 2013, the Delaware Chancery Court issued a memorandum opinion in the Koehler action denying the plaintiff’s motion for a preliminary injunction, which sought to enjoin a shareholder vote on the proposed merger.

While TSYS and the other defendants believed that each of the Actions was without merit, in an effort to minimize the cost and expense of any litigation relating to such Actions, on May 29, 2013, the defendants reached an agreement in principle with the plaintiffs regarding settlement of the Actions. In connection with the settlement contemplated by that agreement in principle, and, later, a Settlement Agreement, dated as of September 20, 2013 (the “Settlement Agreement”), the Actions and all claims asserted therein would be dismissed. In addition, pursuant to the terms of the Settlement Agreement, TSYS and/or NetSpend, where applicable, agreed (a) to make certain amendments to the Merger Agreement; (b) that, consistent with the terms of the Merger Agreement, prior to the receipt of approval of the NetSpend stockholders, NetSpend could furnish information to, and engage in discussions and negotiations with, third parties who make unsolicited bona fide acquisition proposals if certain conditions were met; (c) that the special meeting of NetSpend stockholders that was scheduled to be held on May 31, 2013 would be adjourned to June 18, 2013; (d) that NetSpend would not take certain positions with respect to any appraisal proceeding perfected under Delaware law; (e) that certain information would be provided to counsel for the plaintiffs in the Actions in connection with any perfected appraisal proceeding; and (f) without admitting that any of the claims in the Actions have merit or that any supplemental disclosure was required under any applicable statute, rule, regulation or law, that they would acknowledge that the filing and prosecution of the Actions were the cause, in whole or in part, of certain supplemental disclosures made in connection with the proposed merger.

The Settlement Agreement was submitted to the Court of Chancery on October 4, 2013, and on December 18, 2013, after considering the terms of the settlement, the Delaware Chancery Court entered an order approving the proposed settlement and dismissing the Actions with prejudice. Under the terms of the Settlement Agreement, the settlement became final upon the expiration of the time for any appeal of the court’s December 18, 2013 order, or thirty days following December 18, 2013.

GUARANTEES AND INDEMNIFICATIONS:    The Company has entered into processing and licensing agreements with its clients that include intellectual property indemnification clauses. Under these clauses, the Company generally agrees to indemnify its clients, subject to certain exceptions, against legal claims that TSYS’ services or systems infringe on certain third party patents, copyrights or other proprietary rights. In the event of such a claim, the Company is generally obligated to hold the client harmless and pay for related losses, liabilities, costs and expenses, including, without limitation, court costs and reasonable attorney’s fees. The Company has not made any indemnification payments pursuant to these indemnification clauses.

A portion of the Company’s business is conducted through distributors that provide load and reload services to cardholders at their locations. Members of the Company’s distribution and reload network collect cardholder funds and remit them by electronic transfer to the Issuing Banks for deposit in the cardholder accounts. The Company’s Issuing Banks typically receive cardholders’ funds no earlier than three business days after they are collected by the distributor. If any distributor fails to remit cardholders’ funds to the Company’s Issuing Banks, the Company typically reimburses the Issuing Banks for the shortfall created thereby. The Company manages the risk associated with this process through a formalized set of credit standards, volume limits and deposit requirements for certain distributors and by typically maintaining the right to offset any settlement shortfall against the commissions payable to the relevant distributor. To date, the Company has not experienced any significant losses associated with settlement failures and the Company had not recorded a settlement guarantee liability as of December 31, 2013. As of December 31, 2013, the Company’s estimated gross settlement exposure was $8.8 million.

GPR cardholders can incur charges in excess of the funds available in their accounts and are liable for the resulting overdrawn account balance. Although the Company generally declines authorization attempts for amounts that exceed the available balance in a cardholder’s account, the application of the Networks’ rules and regulations, the timing of the settlement of transactions and the assessment of subscription, maintenance or other fees can, among other things, result in overdrawn card accounts. The Company also provides, as a courtesy and in its discretion, certain cardholders with a “cushion” that allows them to overdraw their card accounts by up to $10. In addition, eligible cardholders may enroll in the Issuing Banks’ overdraft protection programs and fund transactions that exceed the available balance in their accounts. The Company generally provides the funds used as part of these overdraft programs (MetaBank will advance the first $1.0 million on behalf of its cardholders) and is responsible to the Issuing Banks for any losses associated with any overdrawn account balances. As of December 31, 2013, cardholders’ overdrawn account balances totaled $13.8 million. As of December 31, 2013, the Company’s reserves for the losses it estimates will arise from processing customer transactions, debit card overdrafts, chargebacks for unauthorized card use and merchant-related chargebacks due to non-delivery of goods or services was $5.8 million.

The Company has not recorded a liability for guarantees or indemnities in the accompanying consolidated balance sheet since the maximum amount of potential future payments under such guarantees and indemnities is not determinable.

PRIVATE EQUITY INVESTMENTS:    On May 31, 2011, the Company entered into a limited partnership agreement in connection with its agreement to invest in an Atlanta, Georgia-based venture capital fund focused exclusively on investing in technology-enabled financial services companies. Pursuant to the limited partnership agreement, the Company has committed to invest up to $20 million in the fund so long as its ownership interest in the fund does not exceed 50%. As of December 31, 2013, the Company had made investments in the fund of $6.0 million and recognized a cumulative gain of $1.8 million due to an increase in fair value.

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Equity Investments

12 Months Ended

Dec. 31, 2013

Equity Investments

NOTE 11 Equity Investments

The Company has an equity investment in TSYS de México and records its 49% ownership using the equity method of accounting. The operation prints statements and provides card-issuing support services to the equity investment clients and others.

The Company has an equity investment in CUP Data and records its 44.56% ownership using the equity method of accounting. CUP Data is sanctioned by the People’s Bank of China, China’s central bank, and has become one of the world’s largest and fastest-growing payments networks. CUP Data currently provides transaction processing, disaster recovery and other services for banks and bankcard issuers in China.

TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments. TSYS believes the carrying value approximates the underlying assets of the equity investments.

TSYS’ equity in income of equity investments (net of tax) for the years ended December 31, 2013, 2012 and 2011 was $13.0 million, $10.2 million and $8.7 million, respectively.

A summary of TSYS’ equity investments as of December 31 is as follows:

(in thousands)	2013		2012
CUP Data	$	86,549		79,859
TSYS de México		7,584		7,905
Total	$	94,133		87,764

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Summary of Long-term Debt (Parenthetical) (Detail) (USD $)	0 Months Ended	12 Months Ended				12 Months Ended		12 Months Ended
	Dec. 21, 2007	Dec. 31, 2013 LIBOR + 0.80%, unsecured term loan	Dec. 31, 2012 LIBOR + 0.80%, unsecured term loan	Dec. 31, 2013 2.375% Senior Notes due 2018	May 22, 2013 2.375% Senior Notes due 2018	Dec. 31, 2013 3.750% Senior Notes due 2023	May 22, 2013 3.750% Senior Notes due 2023	Dec. 31, 2013 London Interbank Offered Rate LIBOR + 0.80%, unsecured term loan	Dec. 31, 2012 London Interbank Offered Rate LIBOR + 0.80%, unsecured term loan	Dec. 31, 2013 Due December 31, 2015 1.50% note payable	Dec. 31, 2013 Due December 31, 2013 1.50% note payable	Dec. 31, 2012 Due December 31, 2013 1.50% note payable	Dec. 31, 2013 Due January 31, 2016 1.50% note payable	Dec. 31, 2012 Due January 31, 2016 1.50% note payable	Dec. 31, 2013 Due July 31, 2015 1.50% note payable	Dec. 31, 2012 Due July 31, 2015 1.50% note payable	Dec. 31, 2013 Unsecured term loan due on April 08, 2018 LIBOR + 1.125%, unsecured term loan	Dec. 31, 2013 Unsecured term loan due on April 08, 2018 London Interbank Offered Rate LIBOR + 1.125%, unsecured term loan	Dec. 31, 2013 Unsecured term loan due on September 10, 2017 LIBOR + 1.125%, unsecured term loan	Dec. 31, 2012 Unsecured term loan due on September 10, 2017 LIBOR + 1.125%, unsecured term loan	Dec. 31, 2013 Unsecured term loan due on September 10, 2017 London Interbank Offered Rate LIBOR + 1.125%, unsecured term loan	Dec. 31, 2012 Unsecured term loan due on September 10, 2017 London Interbank Offered Rate LIBOR + 1.125%, unsecured term loan
Debt Instrument [Line Items]
Aggregate principal amount				$ 550,000,000	$ 550,000,000	$ 550,000,000	$ 550,000,000
Debt instrument, interest rate				2.375%	2.375%	3.75%	3.75%			1.50%	1.50%	1.50%	1.50%	1.50%	1.50%	1.50%
Debt instrument, maturity date	Dec. 21, 2012	Nov. 05, 2014	Nov. 05, 2014	Jun. 01, 2018		Jun. 01, 2023				Dec. 31, 2015	Dec. 31, 2013	Dec. 31, 2013	Jan. 31, 2016	Jan. 31, 2016	Jul. 31, 2015	Jul. 31, 2015	Apr. 08, 2018		Sep. 10, 2017	Sep. 10, 2017
Senior notes maturity , period				5 years		10 years
Debt instrument, margin rate								0.80%	0.80%									1.125%			1.125%	1.125%

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Other Intangible Assets, net

12 Months Ended

Dec. 31, 2013

Other Intangible Assets, net

NOTE 7 Other Intangible Assets, net

In 2013, TSYS allocated $401.6 million to other intangible assets due to the acquisition of NetSpend. In 2012, TSYS allocated $76.6 million to other intangible assets due to the acquisitions of ProPay and CPAY. Refer to Note 23 for more information on acquisitions.

Significant components of other intangible assets as of December 31 are summarized as follows:

	2013
(in thousands)	Gross		Accumulated Amortization			Net
Channel relationships	$	318,600		(20,261	)	$	298,339
Customer relationships		167,871		(69,114	)		98,757
Trade name		46,561		(6,527	)		40,034
Database		28,000		(2,800	)		25,200
Covenants-not-to-compete		14,940		(2,887	)		12,053
Trade association		10,000		(3,750	)		6,250
Favorable lease		875		(89	)		786
Total	$	586,847		(105,428	)	$	481,419

	2012
(in thousands)	Gross		Accumulated Amortization			Net
Customer relationships	$	167,641		(49,822	)	$	117,819
Trade association		10,000		(2,750	)		7,250
Trade name		2,537		(1,504	)		1,033
Channel relationships		1,600		(266	)		1,334
Covenants-not-to-compete		3,440		(822	)		2,618
Total	$	185,218		(55,164	)	$	130,054

Amortization related to other intangible assets, which is recorded in selling, general and administrative expenses, was $50.0 million, $16.6 million and $13.2 million for 2013, 2012 and 2011, respectively.

The weighted average useful life for each component of other intangible assets, and in total, as of December 31, 2013 is as follows:

	Weighted Average Amortization Period (Yrs)
Customer relationships		8.2
Trade association		10.0
Trade name		4.9
Channel relationships		8.0
Database		5.0
Favorable Lease		4.9
Covenants-not-to-compete		5.3
Total		7.6

Estimated future amortization expense of other intangible assets as of December 31, 2013 for the next five years is:

(in thousands)
2014	$	77,218
2015		75,770
2016		75,213
2017		74,822
2018		60,166

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Cash and Cash Equivalent Balances (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents in domestic accounts	$ 192,468	$ 152,373
Cash and cash equivalents in foreign accounts	85,762	95,239
Total	$ 278,230	$ 247,612	$ 316,337	$ 394,795

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Summarized Status of Performance-based Nonvested Shares and Changes during Period (Parenthetical) (Detail) (Performance Shares)	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock awards granted in connection with acquisition	564,000	[1]	278,000	[1]	300,000	[1]
NetSpend Holdings Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock awards granted in connection with acquisition	87,356

[1] Includes the issuance of approximately 87,356 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $2.2 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

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Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2013

Prepaid Expenses and Other Current Assets

NOTE 5 Prepaid Expenses and Other Current Assets

Significant components of prepaid expenses and other current assets as of December 31 are summarized as follows:

(in thousands)	2013		2012
Prepaid expenses	$	42,341		24,615
Supplies inventory		12,927		8,881
Other		41,427		36,710
Total	$	96,695		70,206

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Goodwill

12 Months Ended

Dec. 31, 2013

Goodwill

NOTE 6 Goodwill

In 2013, the Company allocated $1.0 billion to goodwill due to the acquisition of NetSpend. During 2012, the Company allocated $162.1 million to goodwill due to the acquisitions of ProPay and CPAY.

The gross amount and accumulated impairment losses of goodwill as of December 31, 2013 and 2012 is as follows:

	2013
(in thousands)	North America Services		International Services		Merchant Services			NetSpend		Consolidated
Gross amount	$	70,796		34,201		415,973			1,024,434	$	1,545,404
Accumulated impairment losses		—		—		(2,225	)		—		(2,225	)
Goodwill, net	$	70,796		34,201		413,748			1,024,434	$	1,543,179

	2012
(in thousands)	North America Services		International Services		Merchant Services			NetSpend		Consolidated
Gross amount	$	70,796		33,944		415,829			—	$	520,569
Accumulated impairment losses		—		—		(2,225	)		—		(2,225	)
Goodwill, net	$	70,796		33,944		413,604			—	$	518,344

The changes in the carrying amount of goodwill as of December 31, 2013 and 2012 are as follows:

(in thousands)	North America Services		International Services		Merchant Services		NetSpend		Consolidated
Balance as of December 31, 2011	$	70,796		33,188		251,514		—	$	355,498
CPAY purchase price allocation		—		—		68,570		—		68,570
ProPay purchase price allocation		—		—		93,520		—		93,520
Currency translation adjustments		—		756		—		—		756
Balance as of December 31, 2012		70,796		33,944		413,604		—		518,344
NetSpend purchase price allocation		—		—		—		1,024,434		1,024,434
ProPay purchase price allocation		—		—		144		—		144
Currency translation adjustments		—		257		—		—		257
Balance as of December 31, 2013	$	70,796		34,201		413,748		1,024,434	$	1,543,179

Refer to Note 23 for more information on acquisitions.

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Schedule II - Valuation and Qualifying Accounts (Parenthetical) (Detail) (Provision for Fraud Losses, USD $) In Thousands, unless otherwise specified	12 Months Ended		1 Months Ended
	Dec. 31, 2013		Jul. 01, 2013 NetSpend Holdings Inc
Valuation and Qualifying Accounts Disclosure [Line Items]
Additions Changes in allowances, charges to expenses and changes to other accounts	$ 19,737	[1],[2]	$ 7,800

[1] Amount reflected is the change in transaction processing accruals reflected in cost of services expenses.

[2] Includes $7.8 million of fraud losses on July 1, 2013 related to the acquisition of NetSpend.

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Computer Software, net

12 Months Ended

Dec. 31, 2013

Computer Software, net

NOTE 8 Computer Software, net

Computer software as of December 31 is summarized as follows:

(in thousands)	2013		2012
Licensed computer software	$	417,139		461,217
Software development costs		338,490		303,668
Acquisition technology intangibles		168,336		89,371
Total computer software		923,965		854,256
Less accumulated amortization:
Licensed computer software		224,915		336,521
Software development costs		254,423		232,113
Acquisition technology intangibles		74,854		58,705
Total accumulated amortization		554,192		627,339
Computer software, net	$	369,773		226,917

The Company allocated approximately $78.7 million to acquisition technology intangibles during 2013 due to the acquisition of NetSpend. Refer to Note 23 for more information on this acquisition.

Amortization expense related to licensed computer software costs was $36.9 million, $37.4 million and $37.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense includes amounts for computer software acquired under capital lease. Amortization of software development costs was $21.6 million, $23.3 million and $24.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense related to acquisition technology intangibles was $15.9 million, $9.7 million and $10.3 million for the years ended December 31, 2013, 2012 and 2011, respectively.

The weighted average useful life for each component of computer software, and in total, as of December 31, 2013, is as follows:

	Weighted Average Amortization Period (Yrs)
Licensed computer software		5.7
Software development costs		5.8
Acquisition technology intangibles		6.8
Total		5.9

Estimated future amortization expense of licensed computer software, software development costs and acquisition technology intangibles as of December 31, 2013 for the next five years is:

(in thousands)	Licensed Computer Software		Software Development Costs		Acquisition Technology Intangibles
2014	$	48,293		26,396		19,715
2015		38,847		20,532		16,670
2016		27,964		15,925		15,202
2017		20,312		11,198		13,718
2018		12,805		7,994		11,243

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Gross Amount and Accumulated Impairment Loss of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Goodwill [Line Items]
Gross amount	$ 1,545,404	$ 520,569
Accumulated impairment losses	(2,225)	(2,225)
Goodwill, net	1,543,179	518,344	355,498
North America Services
Goodwill [Line Items]
Gross amount	70,796	70,796
Goodwill, net	70,796	70,796	70,796
International Services
Goodwill [Line Items]
Gross amount	34,201	33,944
Goodwill, net	34,201	33,944	33,188
Merchant Services
Goodwill [Line Items]
Gross amount	415,973	415,829
Accumulated impairment losses	(2,225)	(2,225)
Goodwill, net	413,748	413,604	251,514
NetSpend
Goodwill [Line Items]
Gross amount	1,024,434
Goodwill, net	$ 1,024,434

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Operating Segments (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Revenues before reimbursable items	$ 1,891,755	$ 1,618,491	$ 1,540,698
Revenue for reportable segment	2,132,353	1,870,972	1,808,966
Depreciation and amortization	205,351	170,610	169,165
Operating income	386,247	357,652	322,456
Total assets	3,686,568	2,023,838
North America Services
Segment Reporting Information [Line Items]
Revenue for reportable segment	986,200	945,800	930,700
International Services
Segment Reporting Information [Line Items]
Revenue for reportable segment	403,600	410,100	390,900
Merchant Services
Segment Reporting Information [Line Items]
Revenue for reportable segment	534,700	515,100	487,400
NetSpend
Segment Reporting Information [Line Items]
Revenue for reportable segment	207,900
Operating Segments
Segment Reporting Information [Line Items]
Depreciation and amortization	137,612	141,789	142,584
Operating income	574,252	475,203	431,821
Operating Segments | North America Services
Segment Reporting Information [Line Items]
Revenues before reimbursable items	860,645	826,750	809,069
Revenue for reportable segment	1,000,072	965,393	954,550
Depreciation and amortization	74,479	74,673	77,446
Operating income	314,577	289,493	254,552
Total assets	3,240,298	1,744,877
Operating Segments | International Services
Segment Reporting Information [Line Items]
Revenues before reimbursable items	389,532	396,149	380,129
Revenue for reportable segment	409,597	413,467	394,831
Depreciation and amortization	47,978	55,033	49,722
Operating income	45,911	29,427	43,574
Total assets	417,379	445,642
Operating Segments | Merchant Services
Segment Reporting Information [Line Items]
Revenues before reimbursable items	446,277	409,698	373,159
Revenue for reportable segment	533,049	512,580	487,997
Depreciation and amortization	12,034	12,083	15,416
Operating income	154,047	156,283	133,695
Total assets	676,592	703,725
Operating Segments | NetSpend
Segment Reporting Information [Line Items]
Revenues before reimbursable items	207,851
Revenue for reportable segment	207,851
Depreciation and amortization	3,121
Operating income	59,717
Total assets	1,596,150
Intersegment Elimination
Segment Reporting Information [Line Items]
Revenues before reimbursable items	12,550	14,106	21,659
Revenue for reportable segment	18,216	20,468	28,412
Total assets	2,243,851	870,406
Segment Reconciling Items | Acquisition Related Intangible Assets
Segment Reporting Information [Line Items]
Depreciation and amortization	65,893	26,264	23,583
Operating income	(65,893)	(26,264)	(23,583)
Corporate, Non-Segment | NetSpend
Segment Reporting Information [Line Items]
Operating income	(14,220)
Corporate, Non-Segment | Corporate Administration
Segment Reporting Information [Line Items]
Depreciation and amortization	1,846	2,557	2,998
Operating income	$ (107,892)	$ (91,287)	$ (85,782)

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Required Annual Principal Payments on Long-term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Long Term Debt Maturities Repayments Of Principal [Line Items]
2014	$ 34,257
2015	37,030
2016	30,336
2017	125,000
2018	$ 690,000

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Other Intangible Assets, net - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013 Other intangible assets	Dec. 31, 2012 Other intangible assets	Dec. 31, 2011 Other intangible assets	Dec. 31, 2013 NetSpend Holdings Inc	Jul. 01, 2013 NetSpend Holdings Inc	Dec. 31, 2012 ProPay and CPAY
Finite-Lived Intangible Assets And Liabilities [Line Items]
Business acquisition, acquired intangible assets				$ 401,600,000	$ 480,086,000	$ 76,600,000
Amortization expenses recorded in selling, general and administrative expenses	$ 50,000,000	$ 16,600,000	$ 13,200,000

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Summary of Equity Compensation Plans (Parenthetical) (Detail) (Equity compensation plans approved by security holders)	Dec. 31, 2013
Equity compensation plans approved by security holders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants	11,543,910

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Goodwill - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 NetSpend Holdings Inc	Jul. 01, 2013 NetSpend Holdings Inc	Dec. 31, 2012 ProPay and CPAY
Goodwill [Line Items]
Business acquisition, goodwill	$ 1,543,179	$ 518,344	$ 355,498	$ 1,000,000	$ 1,024,434	$ 162,100

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Income Tax Expense Differed from Amounts Computed by Applying Statutory U.S. Federal Income Tax Rate to Income before Income Taxes, Noncontrolling Interest and Equity in Income of Equity Investments (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reconciliation of Provision of Income Taxes [Line Items]
Computed "expected" income tax expense	$ 124,572	$ 124,199	$ 110,793
International tax rate differential	3,228	2,781	1,831
State income tax expense, net of federal income tax effect	3,495	2,143	3,164
Increase in valuation allowance	549	193	3,773
Tax credits	(6,148)	(3,762)	(9,044)
Deduction for domestic production activities	(8,225)	(5,727)	(5,524)
Permanent differences and other, net	(5,102)	(4,725)	(2,396)
Total income tax expense	$ 112,369	$ 115,102	$ 102,597

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Estimated Fair Value of Identifiable Intangible Assets Acquired (Detail) (USD $) In Thousands, unless otherwise specified	1 Months Ended		1 Months Ended						12 Months Ended					0 Months Ended
	Jul. 01, 2013 NetSpend Holdings Inc	Dec. 31, 2013 NetSpend Holdings Inc	Jul. 01, 2013 NetSpend Holdings Inc Customer relationships	Jul. 01, 2013 NetSpend Holdings Inc Covenants-Not-to-Compete	Jul. 01, 2013 NetSpend Holdings Inc Current Technology	Jul. 01, 2013 NetSpend Holdings Inc Database	Jul. 01, 2013 NetSpend Holdings Inc Trade Name	Jul. 01, 2013 NetSpend Holdings Inc Favorable lease	Dec. 31, 2012 Central Payment Co., LLC and ProPay	Dec. 31, 2012 Central Payment Co., LLC and ProPay Customer relationships	Dec. 31, 2012 Central Payment Co., LLC and ProPay Covenants-Not-to-Compete	Dec. 31, 2012 Central Payment Co., LLC and ProPay Current Technology	Dec. 31, 2012 Central Payment Co., LLC and ProPay Trade Name	May 02, 2011 TermNet Merchant Services, Inc.	May 02, 2011 TermNet Merchant Services, Inc. Customer relationships	May 02, 2011 TermNet Merchant Services, Inc. Covenants-Not-to-Compete	May 02, 2011 TermNet Merchant Services, Inc. Channel relationships
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Acquired identifiable intangible assets, fair value	$ 480,086	$ 401,600	$ 317,000	$ 11,500	$ 78,711	$ 28,000	$ 44,000	$ 875	$ 76,600	$ 59,500	$ 2,900	$ 13,000	$ 1,200	$ 11,740	$ 10,000	$ 100	$ 1,600
Acquired intangible assets,weighted average useful lives	7 years 3 months 18 days		8 years	6 years	7 years	5 years	5 years	4 years 10 months 24 days	7 years 8 months 12 days	8 years 7 months 6 days	2 years 9 months 18 days	5 years	2 years	7 years 3 months 18 days	7 years	2 years	10 years

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Subsequent Events

12 Months Ended

Dec. 31, 2013

Subsequent Events

NOTE 26 Subsequent Events

On February 11, 2014, with cash on hand, the Company acquired an additional 15% equity interest in CPAY from CPC Holding Company, LLC, a California limited liability company. This purchase reduced the remaining redeemable noncontrolling interest in CPAY to 25% of its total outstanding equity.

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Treasury Stock (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Shares Held as Treasury Stock and Related Carrying Value

The following table summarizes shares held as treasury stock and their related carrying value at December 31 :

(in thousands)	Number of Treasury Shares		Treasury Shares Cost
2013		15,073	$	326,996
2012		15,440		287,301
2011		12,829		225,034

Purchases of Common Stock on Monthly Basis

The following table sets forth information regarding the Company’s purchases of its common stock on a monthly basis during the three months ended December 31, 2013:

(in thousands, except per share data)	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Cumulative shares Purchased as Part of Publicly announced Plans or Programs		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
October 2013		—	$	—		12,893		7,107
November 2013		—		—		12,893		7,107
December 2013		3,100		31.48		15,993		4,007
Total		3,100	$	31.48

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Other Current Liabilities

12 Months Ended

Dec. 31, 2013

Other Current Liabilities

NOTE 13 Other Current Liabilities

Significant components of other current liabilities as of December 31 are summarized as follows:

(in thousands)	2013		2012
Deferred revenues	$	36,850		29,101
Dissenting shareholder liability*		25,723		—
Accrued expenses		24,236		30,963
Dividends payable		19,508		729
Accrued income taxes		6,410		10,936
Pass through expenses		8,379		8,532
Commissions		6,546		—
Other		37,036		20,021
Total	$	164,688		100,282

* Refer to Note 23 on acquisitions for additional information.

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Summary of Shares Held as Treasury Stock and Related Carrying Value (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Equity, Class of Treasury Stock [Line Items]
Number of Treasury Shares	15,073	15,440	12,829
Treasury Shares Cost	$ 326,996	$ 287,301	$ 225,034

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Share-Based Compensation

12 Months Ended

Dec. 31, 2013

Share-Based Compensation

NOTE 18 Share-Based Compensation

General Description of Share-Based Compensation Plans

TSYS has various long-term incentive plans under which the Compensation Committee of the Board of Directors has the authority to grant share-based compensation to TSYS employees.

Employee stock options granted during or after 2006 (other than performance-based stock options) generally become exercisable in three equal annual installments on the anniversaries of the date of grant and expire ten years from the date of grant. Vesting for stock options granted during the years 2006 through 2009 (other than performance-based stock options) accelerate upon retirement for employees who have reached age 62 and who also have no less than fifteen years of service, or are 65, at the date of their election to retire. For stock options granted during the years 2006 through 2009, share-based compensation expense is fully recognized for plan participants upon meeting the retirement eligibility requirements of age and service. Employees not retirement eligible who terminate employment only received the shares for the full vesting periods completed.

Stock options granted during 2010 and 2011 generally become exercisable in three equal annual installments on the anniversaries of the date of grant and expire ten years from the date of grant. These options vest on a pro-rata basis upon retirement based upon the number of months employed during the year of retirement. For stock options granted during 2010 and 2011, share-based compensation expense is fully recognized for plan participants upon meeting the retirement eligibility requirements of age and service. Employees not retirement eligible who terminate employment only received the shares for the full vesting periods completed.

Stock options granted subsequent to 2011 generally become exercisable in three equal annual installments on the anniversaries of the date of grant and expire ten years from the date of grant. For employees who retire during the first 18 months of the options term, the options vest on a pro-rata basis based upon the number of months employed during the year of retirement. If the employee retires after the 18-month period, vesting is accelerated upon retirement. When an employee meets the requirements for retirement eligibility after the 18-month period but before the final vesting period, the employee is fully vested in the options at that time. Employees not retirement eligible who terminate employment only received the shares for the full vesting periods completed.

Stock options granted prior to 2006 generally become exercisable at the end of a two to three-year period and expire ten years from the date of grant. Vesting for stock options granted prior to 2006 accelerates upon retirement for plan participants who have reached age 50 and who also have no less than fifteen years of service at the date of their election to retire. Following adoption of ASC 718, share-based compensation expense is recognized in income over the remaining nominal vesting period with consideration for retirement eligibility.

Long-Term Incentive Plans

TSYS maintains the Total System Services, Inc. 2012 Omnibus Plan, Total System Services, Inc. 2007 Omnibus Plan, Total System Services, Inc. 2002 Long-Term Incentive Plan, Total System Services, Inc. 2000 Long-Term Incentive Plan and the Amended and Restated NetSpend Holdings, Inc. 2004 Equity Incentive Plan for Options and Restricted Shares Assumed by Total System Services, Inc. to advance the interests of TSYS and its shareholders through awards that give employees and directors a personal stake in TSYS’ growth, development and financial success. Awards under these plans are designed to motivate employees and directors to devote their best efforts to the business of TSYS. Awards will also help TSYS attract and retain the services of employees and directors who are in a position to make significant contributions to TSYS’ success.

The plans are administered by the Compensation Committee of the Company’s Board of Directors and enable the Company to grant nonqualified and incentive stock options, stock appreciation rights, restricted stock and restricted stock units, performance units or performance shares, cash-based awards, and other stock-based awards.

All stock options must have a maximum life of no more than ten years from the date of grant. The exercise price will not be less than 100% of the fair market value of TSYS’ common stock at the time of grant. Any shares related to awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares, are settled in cash in lieu of shares, or are exchanged with the Committee’s permission, prior to the issuance of shares, for awards not involving shares, shall be available again for grant under the various plans. The aggregate number of shares of TSYS stock which may be granted to participants pursuant to awards granted under the various plans may not exceed the following: Total System Services, Inc. 2012 Omnibus Plan –17 million shares; Total System Services, Inc. 2007 Omnibus Plan –5 million shares; Total System Services, Inc. 2002 Long-Term Incentive Plan –9.4 million shares; and Total System Services, Inc. 2000 Long-Term Incentive Plan –2.4 million shares. Effective February 1, 2010 and March 5, 2012, no additional awards may be made from the Total System Services, Inc. 2000 and 2002 Long-Term Incentive Plans, respectively.

Share-Based Compensation

TSYS’ share-based compensation costs are included as expenses and classified as cost of services and selling, general and administrative. TSYS does not include amounts associated with share-based compensation as costs capitalized as software development and contract acquisition costs as these awards are typically granted to individuals not involved in capitalizable activities. For the year ended December 31, 2013, share-based compensation was $28.9 million compared to $18.6 million and $16.5 million for the same periods in 2012 and 2011, respectively.

Nonvested Awards:    The Company granted shares of TSYS common stock to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued under nonvested stock bonus awards for services to be provided in the future by such officers and employees. The grants to the Board of Directors were fully vested on the date of grant. The following table summarizes the number of shares granted each year:

	2013		2012		2011
Number of shares		1,667,246		310,690		206,040
Market value (in millions)	$	41.3		6.7		3.6

On July 1, 2013, the Company issued 870,361 shares of TSYS common stock as nonvested stock replacement awards with a market value of $21.5 million as part of the NetSpend acquisition. The nonvested stock bonus awards to employees of NetSpend are for services to be provided in the future and vest over varying periods. The NetSpend awards were converted into equivalent shares of Company’s common stock on the acquisition date. The value of the stock at the date of issuance is charged as compensation expense over the vesting periods of the awards.

On July 18, 2013, the Company issued 212,694 retention shares of TSYS common stock with a market value of $5.5 million to certain key employees of NetSpend. The nonvested stock bonus awards to certain key employees are for services to be provided in the future and vest over periods ranging from two to four years. The market value of the TSYS common stock at the date of issuance is charged as compensation expense over the vesting periods of the awards.

A summary of the status of TSYS’ nonvested shares as of December 31, 2013, 2012 and 2011 and the changes during the periods are presented below:

	2013					2012					2011
Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value
Outstanding at beginning of year		554		$	19.96		618		$	16.80		821		$	16.91
Granted 1		1,667			24.75		311			21.47		206			17.67
Vested		(328	)		19.95		(366	)		15.91		(376	)		17.60
Forfeited/canceled		(110	)		23.82		(9	)		19.85		(33	)		15.71
Outstanding at end of year		1,783		$	24.19		554		$	19.96		618		$	16.80

1 Includes the issuance of approximately 870,361 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $21.5 million. A portion of the expense associated with these options has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

As of December 31, 2013, there was approximately $30.8 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted average period of 2.2 years.

On July 18, 2013, TSYS issued 225,000 shares of TSYS common stock as a performance-based retention stock award to a certain key executive with a performance-based vesting schedule. The performance-based stock award has a 2013-2015 performance period for which the Compensation Committee of the Board of Directors established two performance goals: revenues of the NetSpend segment and operating income of the NetSpend segment and, if such goals are attained in 2015, the performance-based award will vest, up to a maximum of 100% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company estimates the probability of achieving the goals through the performance period and expenses the award on a straight-line basis. Compensation costs related to the performance-based stock award are expected to be recognized until the end of 2015.

On July 1, 2013, the Company issued 87,356 shares of TSYS common stock as a performance-based replacement stock award as part of the NetSpend acquisition. The performance-based stock award has a 2013-2015 performance period for which the Compensation Committee of the Board of Directors established two performance goals: revenues of the NetSpend segment and operating income of the NetSpend segment and, if such goals are attained in 2015, the performance award will vest, up to a maximum of 100% of the total grant. The Company estimates the probability of achieving the goals through the performance period and expenses the award on a straight-line basis. Compensation costs related to the performance-based stock award are expected to be recognized until the end of 2015.

In April 2013, TSYS authorized a total grant of 237,679 performance shares to certain key executives with a performance-based vesting schedule (2013 performance shares). These 2013 performance shares have a 2013-2015 performance period for which the Compensation Committee of the Board of Directors established two performance goals: compound growth in revenues before reimbursable items and income from continuing operations and, if such goals are attained in 2015, the performance shares will vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company estimates the probability of achieving the goals through the performance period and expenses the award on a straight-line basis. Compensation costs related to these performance shares are expected to be recognized until the end of 2015.

In March 2012, TSYS authorized a total grant of 241,095 performance shares to certain key executives with a performance based vesting schedule (2012 performance shares). These 2012 performance shares have a 2012-2014 performance period for which the Compensation Committee of the Board of Directors established two performance goals: compound growth in revenues before reimbursable items and income from continuing operations and, if such goals are attained in 2014, the performance shares will vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company estimates the probability of achieving the goals through the performance period and will expense the award on a straight-line basis. Compensation costs related to these performance shares are expected to be recognized until the end of 2014.

In March 2011, TSYS authorized a total grant of 263,292 performance shares to certain key executives with a performance based vesting schedule (2011 performance shares). These 2011 performance shares have a 2011-2013 performance period for which the Compensation Committee of the Board of Directors established two performance goals: compound growth in revenues before reimbursable items and income from continuing operations and, if such goals are attained in 2013, the performance shares will vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. On January 22, 2014, when the Committee certified performance, the performance shares vested at approximately 153% of the total grant.

As of December 31, 2013, there was approximately $13.9 million of total unrecognized compensation cost related to the 2012 and 2013 performance shares compensation arrangement. That cost is expected to be recognized until the end of 2015.

A summary of the awards authorized in each year is below:

	Total Number of Shares Awarded		Potential Number of Performance- Based Shares  to be Vested
2013		563,803		563,803	(2016	)
2012		241,095		458,082	(2015	)
2011		263,292		403,521	(2014	)

A summary of the status of TSYS’ performance-based nonvested shares as of December 31, 2013, 2012 and 2011 and changes during those periods are presented below:

	2013					2012					2011
Performance-based Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Outstanding at beginning of year		809		$	18.76		580		$	16.68		316		$	15.65
Granted 1		564			24.88		278			22.91		300			17.63
Vested		(324	)		15.93		(37	)		18.08		(36	)		15.61
Forfeited/canceled		—			—		(12	)		16.57		—			—
Outstanding at end of year		1,049		$	22.75		809		$	18.76		580		$	16.68

1 Includes the issuance of approximately 87,356 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $2.2 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

Stock Option Awards

On July 1, 2013, the Company issued 1,060,148 stock option replacement awards with a market value of $13.7 million as part of the NetSpend acquisition. The weighted average fair value of the options was $12.93 and was calculated on the date of grant using a conversion factor into equivalent shares of the Company’s common stock on the acquisition date. The grants vest over a period ranging from seven months to 45 months. The weighted average fair value of the option grants was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions: exercise price of $11.68; risk-free interest rate of 1.31%; expected volatility of 29.22%; expected term of 4.7 years; and dividend yield of 1.63%.

During 2013, 2012 and 2011, the Company granted stock options to key TSYS executive officers and non-management members of its Board of Directors. The grants to key TSYS executive officers were issued for services to be provided in the future and vest over a period of three years. The grants to the Board of Directors were fully vested on the date of grant. The average fair value of the options granted was estimated on the date of grant using the Black-Scholes-Merton option-pricing model.

The following table summarizes the weighted average assumptions, and the weighted average fair value of the options:

	2013			2012			2011
Number of options granted		1,939,796			818,090			716,508
Weighted average exercise price	$	17.42		$	22.95		$	17.61
Risk-free interest rate		1.31	%		1.69	%		2.96	%
Expected volatility		26.81	%		24.11	%		29.98	%
Expected term (years)		6.0			7.9			8.5
Dividend yield		1.64	%		1.75	%		1.59	%
Weighted average fair value	$	9.48		$	5.27		$	5.78

A summary of TSYS’ stock option activity as of December 31, 2013, 2012 and 2011, and changes during the years ended on those dates is presented below:

	2013					2012					2011
(in thousands, except per share data)	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Options:
Outstanding at beginning of year		6,065		$	21.27		6,082		$	20.61		8,810		$	23.40
Granted 1		1,940			17.42		818			22.95		717			17.61
Exercised		(2,177	)		18.75		(619	)		16.15		(597	)		13.51
Forfeited/canceled		(76	)		16.78		(216	)		23.73		(2,848	)		29.96
Outstanding at end of year		5,752		$	20.96		6,065		$	21.27		6,082		$	20.61
Options exercisable at year-end		3,232		$	23.02		3,235		$	24.12		3,122		$	25.00
Weighted average fair value of options granted during the year				$	9.48				$	5.27				$	5.78

1 Includes the issuance of approximately 1.1 million stock option replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $13.7 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

As of December 31, 2013, the average remaining contractual life and intrinsic value of TSYS’ outstanding and exercisable stock options were as follows:

	Outstanding		Exercisable
Average remaining contractual life (in years)		6.5		4.5
Aggregate intrinsic value (in thousands)	$	70,851	$	33,143

Shares Issued for Options Exercised

During 2013, 2012 and 2011, employees of the Company exercised options for shares of TSYS common stock that were issued from treasury. The table below summarizes these stock option exercises by year:

(in thousands)	Options Exercised and Issued from Treasury		Intrinsic Value
2013		2,177	$	16,580
2012		619		4,243
2011		597		3,627

For awards granted before January 1, 2006 that were not fully vested on January 1, 2006, the Company will record the tax benefits from the exercise of stock options as increases to the “Additional paid-in capital” line item of the Consolidated Balance Sheets. If the Company does recognize tax benefits, the Company will record these tax benefits from share-based compensation costs as cash inflows in the financing section and cash outflows in the operating section in the Statement of Cash Flows. The Company has elected to use the short-cut method to calculate its historical pool of windfall tax benefits.

As of December 31, 2013, there was approximately $6.1 million of total unrecognized compensation cost related to TSYS stock options that is expected to be recognized over a remaining weighted average period of 1.4 years.

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Future Minimum Lease Payments Under Noncancelable Operating Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Operating Leased Assets [Line Items]
2014	$ 123,807
2015	121,904
2016	111,455
2017	43,517
2018	23,210
Thereafter	42,208
Total future minimum lease payments	$ 466,101

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Equity (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Equity Compensation Plans

EQUITY COMPENSATION PLANS:    The following table summarizes TSYS’ equity compensation plans by category as of December 31, 2013:

(in thousands, except per share data) Plan Category	(a) Number of securities to be  issued upon exercise of outstanding options, warrants and rights		(b) Weighted-average exercise price of outstanding options, warrants and rights		(c) Number of securities  remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by security holders		5,752	$	20.96		11,544	1
Equity compensation plans not approved by security holders		—		—		—
Total		5,752	$	20.96		11,544

1 Includes 11,543,910 shares available for future grants under the Total System Services, Inc. 2007 Omnibus Plan and 2012 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares.

Effect On TSYS' Shareholders' Equity From GP Net's Acquisition Of Treasury Shares

The following table presents the effect on TSYS’ shareholders’ equity from GP Net’s acquisition of treasury shares:

(in thousands)	Year Ended December 31, 2011
Increase in OCI	$	28
Increase in additional paid in capital		77
Effect from change in noncontrolling interests	$	105

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Summary of Number of Shares Granted Each Year (Detail) (Unvested Restricted Awards, USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Unvested Restricted Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares	1,667,246	[1]	310,690	[1]	206,040	[1]
Market value	$ 41.3		$ 6.7		$ 3.6

[1] Includes the issuance of approximately 870,361 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $21.5 million. A portion of the expense associated with these options has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

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Other Intangible Assets, net (Tables)

12 Months Ended

Dec. 31, 2013

Computer Software, Intangible Asset

Components of Intangible Assets

Computer software as of December 31 is summarized as follows:

(in thousands)	2013		2012
Licensed computer software	$	417,139		461,217
Software development costs		338,490		303,668
Acquisition technology intangibles		168,336		89,371
Total computer software		923,965		854,256
Less accumulated amortization:
Licensed computer software		224,915		336,521
Software development costs		254,423		232,113
Acquisition technology intangibles		74,854		58,705
Total accumulated amortization		554,192		627,339
Computer software, net	$	369,773		226,917

Weighted Average Useful Life

The weighted average useful life for each component of computer software, and in total, as of December 31, 2013, is as follows:

	Weighted Average Amortization Period (Yrs)
Licensed computer software		5.7
Software development costs		5.8
Acquisition technology intangibles		6.8
Total		5.9

Estimated Future Amortization Expense

Estimated future amortization expense of licensed computer software, software development costs and acquisition technology intangibles as of December 31, 2013 for the next five years is:

(in thousands)	Licensed Computer Software		Software Development Costs		Acquisition Technology Intangibles
2014	$	48,293		26,396		19,715
2015		38,847		20,532		16,670
2016		27,964		15,925		15,202
2017		20,312		11,198		13,718
2018		12,805		7,994		11,243

Other intangible assets

Components of Intangible Assets

Significant components of other intangible assets as of December 31 are summarized as follows:

	2013
(in thousands)	Gross		Accumulated Amortization			Net
Channel relationships	$	318,600		(20,261	)	$	298,339
Customer relationships		167,871		(69,114	)		98,757
Trade name		46,561		(6,527	)		40,034
Database		28,000		(2,800	)		25,200
Covenants-not-to-compete		14,940		(2,887	)		12,053
Trade association		10,000		(3,750	)		6,250
Favorable lease		875		(89	)		786
Total	$	586,847		(105,428	)	$	481,419

	2012
(in thousands)	Gross		Accumulated Amortization			Net
Customer relationships	$	167,641		(49,822	)	$	117,819
Trade association		10,000		(2,750	)		7,250
Trade name		2,537		(1,504	)		1,033
Channel relationships		1,600		(266	)		1,334
Covenants-not-to-compete		3,440		(822	)		2,618
Total	$	185,218		(55,164	)	$	130,054

Weighted Average Useful Life

The weighted average useful life for each component of other intangible assets, and in total, as of December 31, 2013 is as follows:

	Weighted Average Amortization Period (Yrs)
Customer relationships		8.2
Trade association		10.0
Trade name		4.9
Channel relationships		8.0
Database		5.0
Favorable Lease		4.9
Covenants-not-to-compete		5.3
Total		7.6

Estimated Future Amortization Expense

Estimated future amortization expense of other intangible assets as of December 31, 2013 for the next five years is:

(in thousands)
2014	$	77,218
2015		75,770
2016		75,213
2017		74,822
2018		60,166

Contract Acquisition Costs

Components of Intangible Assets

Significant components of contract acquisition costs as of December 31 are summarized as follows:

(in thousands)	2013		2012
Conversion costs, net	$	112,239		85,402
Payments for processing rights, net		72,651		75,865
Total	$	184,890		161,267

Weighted Average Useful Life

The weighted average useful life for each component of contract acquisition costs, and in total, as of December 31, 2013 is as follows:

	Weighted Average Amortization Period (Yrs)
Payments for processing rights		12.8
Conversion costs		8.3
Total		11.4

Estimated Future Amortization Expense

Estimated future amortization expense of conversion costs and payments for processing rights as of December 31, 2013 for the next five years is:

(in thousands)	Conversion Costs		Payments for Processing Rights
2014	$	20,537		13,925
2015		28,201		13,358
2016		26,036		10,969
2017		20,678		8,917
2018		18,705		7,952

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Summarized Status of Nonvested Shares and Changes during Periods (Parenthetical) (Detail) (Unvested Restricted Awards, USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock awards granted in connection with acquisition	1,667,246	[1]	310,690	[1]	206,040	[1]
Market value of stock awarded granted in connection with acquisition	$ 41.3		$ 6.7		$ 3.6
NetSpend Holdings Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock awards granted in connection with acquisition	870,361
Market value of stock awarded granted in connection with acquisition	$ 21.5

[1] Includes the issuance of approximately 870,361 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $21.5 million. A portion of the expense associated with these options has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net income	$ 256,597	$ 249,923	$ 222,662
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(4,081)	2,183	1,674
Postretirement healthcare plan adjustments	1,895	(1,666)	1,056
Unrealized gain on available-for-sale securities	1,773
Other comprehensive income (loss)	(413)	517	2,730
Comprehensive income	256,184	250,440	225,392
Comprehensive income attributable to noncontrolling interests	9,092	4,307	2,721
Comprehensive income attributable to TSYS common shareholders	$ 247,092	$ 246,133	$ 222,671

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Significant Components of Other Current Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013		Dec. 31, 2012
Other Liabilities [Line Items]
Deferred revenues	$ 36,850		$ 29,101
Dissenting shareholder liability	25,723	[1]
Accrued expenses	24,236		30,963
Dividends payable	19,508		729
Accrued income taxes	6,410		10,936
Pass through expenses	8,379		8,532
Commissions	6,546
Other	37,036		20,021
Total	$ 164,688		$ 100,282

[1] Refer to Note 23 on acquisitions for additional information

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Fair Value Measurement

12 Months Ended

Dec. 31, 2013

Fair Value Measurement

NOTE 2 Fair Value Measurement

ASC 820, “Fair Value Measurements and Disclosure,” requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant level of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows:

Level 1 — Quoted prices for identical assets and liabilities in active markets.

Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Unobservable inputs for the asset or liability.

Goodwill is assessed annually for impairment in the second quarter of each year using fair value measurement techniques. Specifically, goodwill impairment is determined using a two-step test. The first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit (RU) with its book value, including goodwill. If the fair value of the RU exceeds its book value, goodwill is considered not impaired and the second step of the impairment test is unnecessary. If the book value of the RU exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the RU’s goodwill with the book value of that goodwill. If the book value of the RU’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The fair value of the RU is allocated to all of the assets and liabilities of that unit as if the RU had been acquired in a business combination and the fair value of the RU was the purchase price paid to acquire the RU.

The estimate of fair value of the Company’s RUs is determined using various valuation techniques, including using an equally weighted combination of the market approach and the income approach. The market approach, which contains Level 2 inputs, utilizes readily available market valuation multiples to estimate fair value. The income approach is a valuation technique that utilizes the discounted cash flow (DCF) method, which includes Level 3 inputs. Under the DCF method, the fair value of the RU reflects the present value of the projected earnings that will be generated by each RU after taking into account the revenues and expenses associated with the asset, the relative risk that the cash flows will occur, the contribution of other assets, and an appropriate discount rate to reflect the value of the invested capital. Cash flows are estimated for future periods based upon historical data and projections by management.

As of December 31, 2013, the Company had recorded goodwill in the amount of $1.5 billion. The Company performed its annual impairment test of its goodwill balances as of May 31, 2013, and this test did not indicate any impairment. The fair value of the RUs substantially exceeds the carrying value. Refer to Note 6 for more information regarding goodwill.

The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value.

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Relationships with Affiliated Companies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Investments in and Advances to Affiliates [Line Items]
Accounts receivable balance associated with related parties	$ 7,400	$ 7,500
Accounts payable balance associated with related parties	12,000	77,000
TSYS de Mexico
Investments in and Advances to Affiliates [Line Items]
Processing support fees paid to TSYS de Mexico	$ 148,000	$ 186,000	$ 168,000

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Long-term Debt and Capital Lease Obligations - Additional Information (Detail)	0 Months Ended	1 Months Ended			1 Months Ended	12 Months Ended	0 Months Ended			1 Months Ended				0 Months Ended			1 Months Ended				0 Months Ended				12 Months Ended		12 Months Ended			0 Months Ended				1 Months Ended	0 Months Ended					0 Months Ended		0 Months Ended
	Dec. 21, 2007	Dec. 31, 2010 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Jul. 01, 2013 NetSpend Holdings Inc USD ($)	Dec. 31, 2013 NetSpend Holdings Inc	Dec. 31, 2011 International Services	Oct. 30, 2008 International Services USD ($)	Oct. 30, 2008 International Services JPY (¥)	Apr. 30, 2009 International Services USD ($)	Apr. 30, 2009 International Services JPY (¥)	Jan. 31, 2009 International Services USD ($)	Jan. 31, 2009 International Services JPY (¥)	Sep. 10, 2012 Unsecured term loan terminated USD ($)	Dec. 21, 2007 LIBOR + 0.60%, unsecured term loan USD ($)	Dec. 31, 2013 Licensing Agreement One USD ($)	Dec. 31, 2012 Licensing Agreement Two USD ($)	Jun. 30, 2012 Licensing Agreement Two USD ($)	Dec. 31, 2013 Licensing Agreement Two Financing agreement in June 2012 USD ($)	Dec. 31, 2013 Licensing Agreement Two Financing agreement in December 2012 USD ($)	Oct. 30, 2008 London Interbank Offered Rate International Services	Dec. 21, 2007 London Interbank Offered Rate LIBOR + 0.60%, unsecured term loan	Dec. 21, 2007 London Interbank Offered Rate LIBOR + 0.60%, unsecured term loan Minimum	Dec. 21, 2007 London Interbank Offered Rate LIBOR + 0.60%, unsecured term loan Maximum	Dec. 31, 2013 2.375% Senior Notes due 2018 USD ($)	May 22, 2013 2.375% Senior Notes due 2018 USD ($)	Dec. 31, 2013 3.750% Senior Notes due 2023 USD ($)	May 22, 2013 3.750% Senior Notes due 2023 USD ($)	May 22, 2013 Senior Notes USD ($)	Sep. 10, 2012 Unsecured revolving credit facility terminated USD ($)	Sep. 10, 2012 Unsecured revolving credit facility USD ($)	Dec. 21, 2007 Unsecured revolving credit facility USD ($)	Dec. 31, 2013 Unsecured revolving credit facility USD ($)	Jul. 01, 2013 Unsecured revolving credit facility NetSpend Holdings Inc USD ($)	Dec. 21, 2007 Unsecured revolving credit facility Minimum	Dec. 21, 2007 Unsecured revolving credit facility Maximum	Sep. 10, 2012 Unsecured revolving credit facility Maximum USD ($)	Sep. 10, 2012 Unsecured revolving credit facility Standby letters of credit USD ($)	Sep. 10, 2012 Unsecured revolving credit facility Swingline loans USD ($)	Apr. 08, 2013 Term Loan USD ($)	Dec. 31, 2013 Term Loan USD ($)	Apr. 08, 2013 Term Loan London Interbank Offered Rate (LIBOR)	Apr. 08, 2013 Term Loan London Interbank Offered Rate (LIBOR) Minimum	Apr. 08, 2013 Term Loan London Interbank Offered Rate (LIBOR) Maximum	Feb. 19, 2013 Bridge Loan Facility USD ($)	Feb. 19, 2013 Bridge Loan Facility Before Amendment USD ($)
Debt Disclosure [Line Items]
Credit agreement term								3 years	3 years					5 years	5 years															5 years	5 years	5 years								5 years
Credit agreement, maximum borrow capacity			$ 5,000,000					$ 21,000,000	¥ 2,000,000,000																					$ 252,000,000	$ 350,000,000							$ 50,000,000	$ 50,000,000	$ 200,000,000
Debt instrument, margin rate																					0.80%	0.60%	0.27%	0.725%																		1.125%	1.00%	1.75%
Outstanding balance on the Credit Agreement																																	138,800,000	0							195,000,000
Bridge loan facility, term																																													364 days
Credit agreement commitment																																														1,200,000,000
Debt instrument, fee amount																													8,900,000																5,900,000
Aggregate principal amount																									550,000,000	550,000,000	550,000,000	550,000,000
Senior notes maturity year																										2018		2023
Senior notes interest rate																									2.375%	2.375%	3.75%	3.75%
Debt instrument, discount																													4,300,000
Business acquisition, cost of acquired entity, purchase price					1,396,550,000
Debt instrument credit ratings						The Company received a rating from Moody's of Baa3 and a rating from Standard & Poor's of BBB+ in connection with the Senior Notes at the time of issuance.
Unsecured revolving credit facility, increased additional borrowings																																					350,000,000
Long-term debt			1,462,508,000	202,220,000										168,000,000	168,000,000										549,858,000		546,027,000				150,000,000	252,000,000
Debt instrument maturity period																									5 years		10 years				5 years
Amount draw under credit agreement								15,100,000	1,500,000,000	2,500,000	250,000,000	2,800,000	250,000,000																					100,000,000
Debt instrument maturity date	Dec. 21, 2012						Nov. 05, 2014							Dec. 21, 2012											Jun. 01, 2018		Jun. 01, 2023
Revolving credit facility expiration date																														Dec. 21, 2012
Debt instrument, frequency of interest payments															3 months
Commitment fee																																0.10%			0.08%	0.15%
Financing agreement amount																20,000,000
Balance of financing agreement																20,000,000			4,600,000	8,300,000
Financing agreement with vendor																	11,900,000	8,600,000
Note payable obtained from third party vendor		$ 39,800,000

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Summarized Status of Nonvested Shares and Changes during Periods (Detail) (Unvested Restricted Awards, USD $)	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Unvested Restricted Awards
Shares
Outstanding at beginning of year	554,000		618,000		821,000
Granted	1,667,246	[1]	310,690	[1]	206,040	[1]
Vested	(328,000)		(366,000)		(376,000)
Forfeited/canceled	(110,000)		(9,000)		(33,000)
Outstanding at end of year	1,783,000		554,000		618,000
Weighted Average Grant-Date Fair Value
Outstanding at beginning of year	$ 19.96		$ 16.80		$ 16.91
Granted	$ 24.75	[1]	$ 21.47	[1]	$ 17.67	[1]
Vested	$ 19.95		$ 15.91		$ 17.60
Forfeited/canceled	$ 23.82		$ 19.85		$ 15.71
Outstanding at end of year	$ 24.19		$ 19.96		$ 16.80

[1] Includes the issuance of approximately 870,361 stock replacement awards in connection with the acquisition of NetSpend. These awards had a market value of $21.5 million. A portion of the expense associated with these options has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 23.

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Estimated Future Amortization Expense on Other Intangible Assets (Detail) (Other intangible assets, USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
2014	$ 77,218
2015	75,770
2016	75,213
2017	74,822
2018	$ 60,166

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Treasury Stock

12 Months Ended

Dec. 31, 2013

Treasury Stock

NOTE 19 Treasury Stock

The following table summarizes shares held as treasury stock and their related carrying value at December 31 :

(in thousands)	Number of Treasury Shares		Treasury Shares Cost
2013		15,073	$	326,996
2012		15,440		287,301
2011		12,829		225,034

Stock Repurchase Plan

On April 20, 2010, TSYS announced a stock repurchase plan to purchase up to 10 million shares of TSYS stock. The shares may be purchased from time to time over the next two years at prices considered attractive to the Company. On May 3, 2011, TSYS announced that its Board had approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 10 million shares to up to 15 million shares of TSYS stock. On July 24, 2012, TSYS announced that its Board had approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 15 million shares to up to 20 million shares of TSYS stock. The expiration date of the plan was also extended to April 30, 2014. During 2013, the Company purchased 3.1 million shares for approximately $97.6 million, at an average price of $31.48. During 2012, the Company purchased 3.2 million shares for approximately $74.6 million, at an average price of $23.31. During 2011, the Company purchased 6.6 million shares for approximately $120.6 million, at an average price of $18.28. In January 2014, the TSYS Board approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 20 million shares to up to 28 million shares of TSYS stock. With the increase, TSYS has 12.0 million shares available to be repurchased. In addition, the expiration date of the plan was extended to April 30, 2015.

The following table sets forth information regarding the Company’s purchases of its common stock on a monthly basis during the three months ended December 31, 2013:

(in thousands, except per share data)	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Cumulative shares Purchased as Part of Publicly announced Plans or Programs		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
October 2013		—	$	—		12,893		7,107
November 2013		—		—		12,893		7,107
December 2013		3,100		31.48		15,993		4,007
Total		3,100	$	31.48

Treasury Shares

In 2008, the Compensation Committee approved “share withholding for taxes” for all employee nonvested awards, and also for employee stock options under specified circumstances. The dollar amount of the income tax liability from each exercise is converted into TSYS shares and withheld at the statutory minimum. The shares are added to the treasury account and TSYS remits funds to the Internal Revenue Service to settle the tax liability. During 2013 and 2012, the Company acquired 264,383 shares for approximately $6.3 million and 31,000 shares for approximately $671,000, respectively, as a result of share withholding for taxes.

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Purchases of Common Stock on Monthly Basis (Detail) (USD $)	0 Months Ended		1 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 29, 2011	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Nov. 30, 2013	Oct. 31, 2013
Equity, Class of Treasury Stock [Line Items]
Total Number of Shares Purchased	3,100,000	400	3,100,000	3,100,000	3,200,000	6,600,000
Average Price Paid per Share	$ 31.48		$ 31.48	$ 31.48	$ 23.31	$ 18.28
Total Number of Cumulative Shares Purchased as Part of Publicly Announced Plans or Programs	15,993,000		15,993,000	15,993,000			12,893,000	12,893,000
Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs	4,007,000		4,007,000	4,007,000			7,107,000	7,107,000

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Pro Forma Revenue and Earnings (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Business Acquisition, Pro Forma Information [Line Items]
Revenue	$ 2,132,353	$ 1,870,972	$ 1,808,966
Net income attributable to TSYS common shareholders	244,750	244,280	220,559
Basic EPS attributable to TSYS common shareholders	$ 1.30	$ 1.30	$ 1.15
Diluted EPS attributable to TSYS common shareholders	$ 1.29	$ 1.29	$ 1.15
NetSpend Holdings Inc
Business Acquisition, Pro Forma Information [Line Items]
Revenue	2,132,353	1,870,972
Net income attributable to TSYS common shareholders	244,750	244,280
Basic EPS attributable to TSYS common shareholders	$ 1.30	$ 1.30
Diluted EPS attributable to TSYS common shareholders	$ 1.29	$ 1.29
Revenue	2,354,396	2,222,069
Net income attributable to TSYS common shareholders	$ 239,775	$ 193,255
Basic EPS attributable to TSYS common shareholders	$ 1.27	$ 1.03
Diluted EPS attributable to TSYS common shareholders	$ 1.26	$ 1.03

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Awards and Estimated Fair Value of Awards Issued in Acquisition of Net Spend (Detail) (NetSpend Holdings Inc, USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended
	Jul. 01, 2013
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Number of Shares, Options and Units Issued	2,017,865
Fair Value	$ 37.4
Non-Qualified Stock Options
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Number of Shares, Options and Units Issued	530,696
Fair Value	8.4
Incentive Stock Options
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Number of Shares, Options and Units Issued	529,452
Fair Value	5.3
Time Based Restricted Stock
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Number of Shares, Options and Units Issued	870,361
Fair Value	21.5
Performance Based Restricted Stock
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Number of Shares, Options and Units Issued	87,356
Fair Value	$ 2.2

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Property and Equipment Balances (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 666,164	$ 624,622
Less accumulated depreciation and amortization	400,948	364,233
Property and equipment, net	265,216	260,389
Computer and other equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	274,987	247,506
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	242,132	232,141
Furniture and other equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	131,036	125,100
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	17,021	16,920
Other
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 988	$ 2,955

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Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2013

Cash and Cash Equivalent Balances

Cash and cash equivalent balances at December 31 are summarized as follows:

(in thousands)	2013		2012
Cash and cash equivalents in domestic accounts	$	192,468		152,373
Cash and cash equivalents in foreign accounts		85,762		95,239
Total	$	278,230		247,612

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Long-term Debt and Capital Lease Obligations

12 Months Ended

Dec. 31, 2013

Long-term Debt and Capital Lease Obligations

NOTE 12 Long-term Debt and Capital Lease Obligations

On February 19, 2013, the Company and its wholly-owned merger subsidiary entered into an Agreement and Plan of Merger (as amended on May 29, 2013, the “Merger Agreement”) with NetSpend, pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, the merger subsidiary merged with and into NetSpend on July 1, 2013, with NetSpend continuing as the surviving corporation and as a wholly-owned subsidiary of TSYS (the “Merger”). Refer to Note 23 for more information about the acquisition.

On April 8, 2013, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as Administrative Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Syndication Agent, Regions Bank and U.S. Bank National Association, as Documentation Agents, and other lenders party thereto, with J.P. Morgan Securities LLC, The Bank of Tokyo Mitsubishi UFJ, Ltd., Regions Capital Markets, and U.S. Bank National Association as joint lead arrangers and joint bookrunners. The Credit Agreement provides for a five-year term loan to the Company in the amount of $200.0 million (the “Term Loan”) and bears interest at LIBOR plus 1.125%, which are subject to adjustment based on changes in the Company’s credit ratings, with margins ranging from 1.00 to 1.75%. As of December 31, 2013, the outstanding balance on the Credit Agreement was $195.0 million.

Concurrently with entering into the Merger Agreement, TSYS obtained commitments for a $1.2 billion 364-day bridge term loan facility from JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC and The Bank of Tokyo-Mitsubishi UFJ, Ltd. Thereafter, JPMorgan Chase Bank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. assigned portions of their commitments to other bridge facility lenders. The Company paid fees associated with the bridge term loan of approximately $5.9 million. The total commitments under the bridge term loan facility were eliminated in May 2013 after the issuance of the Notes described below.

On May 22, 2013, the Company closed its issuance (the “Transaction”) of $550.0 million aggregate principal amount of 2.375% Senior Notes due 2018 and $550.0 million aggregate principal amount of 3.750% Senior Notes due 2023 (collectively, the “Notes”) pursuant to an Underwriting Agreement with J.P. Morgan Securities LLC, as representative of certain underwriters (the “Underwriters”), whereby the Company agreed to sell and the Underwriters agreed to purchase the Notes from the Company, subject to and upon the terms and conditions set forth in the Underwriting Agreement. The interest on the Notes are payable semiannually. The Company paid fees associated with the issuance of these Notes of approximately $8.9 million and recorded discounts of approximately $4.3 million that are being amortized over the life of the Notes. The Company used the net proceeds of the Transaction to pay a portion of the $1.4 billion purchase price of the Company’s acquisition of NetSpend and related fees and expenses. The Notes were issued pursuant to an Indenture dated as of May 22, 2013 between the Company and Wells Fargo Bank, National Association, as trustee. The Company received a rating from Moody’s of Baa3 and a rating from Standard & Poor’s of BBB+ in connection with the Senior Notes at the time of issuance.

The Notes also contain various affirmative and negative covenants, including those that create limitations on the Company’s:

• creation of liens;

• merging or selling assets unless certain conditions are met; and

• entering into sale/leaseback transactions.

The Notes also contain a provision that requires the Company to repurchase all or any portion of a holder’s Notes, at the holder’s option, if a Change in Control Repurchase Event occurs.

Amendment to Existing Credit Agreement

On September 10, 2012, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as Administrative Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Regions Bank and U.S. Bank National Association, as Syndication Agents, and the other lenders named therein, with J.P. Morgan Securities LLC, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Regions Capital Markets and U.S. Bank National Association, as joint lead arrangers and joint bookrunners (the “Existing Credit Agreement”). The Existing Credit Agreement provides for a $350 million five-year unsecured revolving credit facility (which may be increased by up to an additional $350 million under certain circumstances) and includes a $50 million subfacility for the issuance of standby letters of credit and a $50 million subfacility for swingline loans. The Existing Credit Agreement also provides for a $150 million five-year unsecured term loan, which was fully funded on the closing of the Existing Credit Agreement. As of December 31, 2013, the outstanding balance on the Existing Credit Agreement was $138.8 million.

On April 8, 2013, the Company entered into the First Amendment to the Existing Credit Agreement (the “Revolver”) in order to conform certain provisions of the Existing Credit Agreement to the Credit Agreement for the Term Loan. On July 1, 2013, an additional $100 million was used as funding in the NetSpend Merger. As of December 31, 2013, there was no outstanding balance on the Revolver.

On September 10, 2012 and in connection with entering into the credit facilities described above, the Company terminated its existing credit agreement dated as of December 21, 2007 with Bank of America N.A., as Administrative Agent, The Royal Bank of Scotland plc, as Syndication Agent, and the other lenders named therein. That credit agreement provided for a $252 million five-year unsecured revolving credit facility and a $168 million five-year term loan, both of which were scheduled to mature on December 21, 2012. No material early termination penalties were incurred as a result of the termination.

The Credit Agreement for the aforementioned loan provided for a $168 million unsecured five year term loan to the Company and a $252 million five year unsecured revolving credit facility. The principal balance of loans outstanding under the credit facility bears interest at a rate of LIBOR plus an applicable margin of 0.60%. The applicable margin could vary within a range from 0.27% to 0.725% depending on changes in the Company’s corporate credit rating. Interest was paid on the last date of each interest period; however, if the period exceeded three months, interest was paid every three months after the beginning of such interest period. In addition, the Company paid each lender a fee in respect of the amount of such lender’s commitment under the revolving credit facility (regardless of usage), ranging from 0.08% to 0.15% (currently 0.10%) depending on the Company’s corporate credit rating.

The Company was not required to make any scheduled principal payments other than payment of the entire outstanding balance on December 21, 2012. The Company was able to prepay the revolving credit facility and the term loan in whole or in part at any time without premium or penalty, subject to reimbursement of the lenders’ customary breakage and redeployment costs in the case of prepayment of LIBOR borrowings. The Credit Agreement included covenants requiring the Company to maintain certain minimum financial ratios. The Company did not use the revolving credit facility in 2012 or 2011.

TSYS acquired additional mainframe and distributed software licenses to increase capacity as a result of continued increases in transaction volumes. The Company entered into a $20.0 million financing agreement in December 2013 to purchase these additional software licenses. The balance at December 31, 2013 was $20.0 million.

TSYS also acquired additional mainframe software licenses to increase capacity in 2012. The Company entered into an $8.6 million and an $11.9 million financing agreement in June and December 2012, respectively, to purchase these additional software licenses. The balance at December 31, 2013 was $4.6 million and $8.3 million, respectively.

In December 2010, the Company obtained a $39.8 million note payable from a third-party vendor related to financing the purchase of distributed systems software. The note was no longer outstanding at December 31, 2013.

On October 30, 2008, the Company’s International Services segment obtained a credit agreement from a third-party to borrow up to ¥2.0 billion, or approximately $21 million, in a Yen-denominated three-year loan to finance activities in Japan. The rate is LIBOR plus 80 basis points. The Company initially made a draw of ¥1.5 billion, or approximately $15.1 million. In January 2009, the Company made an additional draw down of ¥250 million, or approximately $2.8 million. In April 2009, the Company made an additional draw down of ¥250 million, or approximately $2.5 million. On December 30, 2011, the Company modified its loan to extend the maturity date to November 5, 2014. In December 2013, the Company repaid this loan.

In addition, TSYS maintains an unsecured credit agreement with Columbus Bank and Trust. The credit agreement has a maximum available principal balance of $5.0 million, with interest at prime. TSYS did not use the credit facility during 2013, 2012 or 2011.

Long-term debt as of December 31 consists of:

(in thousands)	2013		2012
$550,000,000 2.375% Senior Notes, due June 1, 2018 (5 year tranche), net of discount	$	549,858		—
$550,000,000 3.75% Senior Notes, due June 1, 2023 (10 year tranche), net of discount		546,027		—
LIBOR + 1.125%, unsecured term loan, due April 8, 2018, with quarterly principal and interest payments		195,000		—
LIBOR + 1.125%, unsecured term loan, due September 10, 2017, with quarterly principal and interest payments		138,750		146,250
LIBOR + 0.80%, unsecured term loan, due November 5, 2014, with principal paid at maturity		—		23,236
1.50% note payable, due December 31, 2015, with monthly interest and principal payments		20,000		—
1.50% note payable, due December 31, 2013, with monthly interest and principal payments		—		13,452
1.50% note payable, due January 31, 2016, with monthly interest and principal payments		8,269		11,825
1.50% note payable, due July 31, 2015, with monthly interest and principal payments		4,604		7,457
Total debt		1,462,508		202,220
Less current portion		34,257		27,361
Noncurrent portion of long-term debt	$	1,428,251		174,859

Required annual principal payments on long-term debt for the five years subsequent to December 31, 2013 are summarized as follows:

(in thousands)
2014	$	34,257
2015		37,030
2016		30,336
2017		125,000
2018		690,000

Capital lease obligations as of December 31 consist of:

(in thousands)	2013		2012
Capital lease obligations	$	30,532		30,418
Less current portion		23,032		13,263
Noncurrent portion of capital leases	$	7,500		17,155

The future minimum lease payments under capital leases as of December 31, 2013 are summarized as follows:

(in thousands)
2014	$	23,424
2015		3,607
2016		2,397
2017		1,461
2018		247
Total minimum lease payments		31,136
Less amount representing interest		604
Principal minimum lease payments	$	30,532

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Summary of Equity Compensation Plans (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities to be issued upon exercise of outstanding options, warrants and rights	5,752
Weighted-average exercise price of outstanding options, warrants and rights	$ 20.96
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))	11,544
Equity compensation plans approved by security holders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities to be issued upon exercise of outstanding options, warrants and rights	5,752
Weighted-average exercise price of outstanding options, warrants and rights	$ 20.96
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))	11,544	[1]

[1] Includes 11,543,910 shares available for future grants under the Total System Services, Inc. 2007 Omnibus Plan and 2012 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares.