8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

October 20, 2010
Date of Report (Date of Earliest Event Reported)

Total System Services, Inc.

(Exact Name of Registrant as Specified in its Charter)

Georgia	1-10254	58-1493818
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One TSYS Way, Columbus, Georgia 31901
(Address of principal executive offices) (Zip Code)

(706) 649-2267
(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On October 20, 2010, Total System Services, Inc. (“Registrant”) issued a press release announcing financial results for the third quarter ended September 30, 2010. The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information in the press release shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934 except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

On October 20, 2010, Registrant will hold an investor conference call and webcast to discuss its financial results for the third quarter ended September 30, 2010. A copy of the presentation to be used during the conference call is attached hereto as Exhibit 99.2 and incorporated herein by reference. The information in the presentation shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934 except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit
No.	Description
99.1	Registrant’s press release dated October 20, 2010
99.2	Registrant’s presentation dated October 20, 2010

2

Signature

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TOTAL SYSTEM SERVICES, INC. (“Registrant”)
Dated: October 20, 2010	By:	/s/ Kathleen Moates
		Kathleen Moates
		Senior Deputy General Counsel

3

EX-99.1

Exhibit 99.1

PRESS RELEASE

Total System Services, Inc.
One TSYS Way	+1.706.649.2307
Post Office Box 2567	+1.706.649.5740
Columbus GA 31902-2567	www.tsys.com

For immediate release:

Contact:

Shawn Roberts
TSYS Investor Relations
+1.706.644.6081
shawnroberts@tsys.com

TSYS Announces Third Quarter 2010 Financial Results
Annual Guidance Revised to Include Increased Earnings Per Share

Columbus, Ga., October 20, 2010 — TSYS (NYSE: TSS) today reported results for the third quarter of 2010. Total revenues were $433.2 million, an increase of 1.0% over 2009. Operating income was down 10.6% compared to 2009. Basic and diluted earnings per share from continuing operations attributable to TSYS shareholders for the quarter were $0.25, down $0.05 or 17.1%, from 2009’s $0.30.

Year to date, total revenues were up 2.6% and operating income was down 4.7% compared to 2009. On a normalized basis, total revenues were up approximately 1.0% and operating income increased 11.1%. Normalized results exclude revenues from termination fees and deconverted clients, and the impact of the acquisition of First National Merchant Solutions (FNMS). On a generally accepted accounting principles (GAAP) basis, basic and diluted earnings per share from continuing operations attributable to TSYS shareholders for the nine months were $0.76, down $0.06 or 6.9%, from 2009’s $0.82.

“Excluding the termination fees and revenues from deconverted clients in the second quarter, our sequential quarterly revenues increased 2.9% and operating income increased 12.9%. This is the second quarter in a row that revenues, operating income and transactions have increased. Same client transactions were up 5.3% in North America and up 4.3% in International. In the Merchant segment, transactions grew 1.1%,” said Philip W. Tomlinson, chairman of the board and chief executive officer of TSYS.

“With these quarterly results, we have increased the range of our guidance for earnings per share from continuing operations by $0.02 from $0.96 to $0.98 up to $0.98 to $1.00. We also adjusted our total revenues and revenues before reimbursable items for discontinued operations,” said Tomlinson.

On September 30, 2010, TSYS closed the sale of TSYS POS Systems and Services, L.L.C (TPOS), a third-party POS terminal deployment business which represented a small piece of its Merchant segment. The accompanying financial statements do not include any of TPOS’ revenues, expenses, nonoperating income (expense) or income taxes in continuing operations. The results of TPOS are reported net of income tax as “discontinued operations” for all periods presented, and are deemed immaterial for cash flow purposes.

TSYS’ previous revenue guidance included approximately $11.5 million of revenues associated with TPOS in 2010, and $10.6 million in 2009. TPOS’ results from operations were immaterial in both years.

Page 1 of 12

PRESS RELEASE

During the quarter, TSYS purchased 3.1 million shares of its stock on the open market for $45.1 million, leaving 6.9 million shares remaining for purchase under the current approved share repurchase plan. TSYS is also revising the average shares outstanding for the number of shares repurchased in the third quarter of 2010.

TSYS’ new guidance is as follows:

	2010 Revised Guidance
	Range
	(in millions, except per					Percent
	share amounts)					Change
Total revenues	$	1,700	to	$	1,734		1	%	to	3	%
Reimbursable items	$	279	to	$	284		3	%	to	5	%
Revenues before reimbursable items	$	1,421	to	$	1,450		1	%	to	3	%
Income from continuing operations	$	192	to	$	196		(13	%)	to	(12	%)
EPS from continuing operations available to TSYS common shareholders	$	0.98	to	$	1.00		(13	%)	to	(11	%)
Average Shares Outstanding		196.4

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. EDT on Wednesday, October 20. The conference call can be accessed via simultaneous Internet broadcast at tsys.com by clicking on the link under “Webcasts” on the main homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call. A slide presentation to accompany the call will be available by clicking on the link under “Webcasts” on the main homepage of tsys.com.

Non-GAAP Measures

This press release and the financial highlights section of this release contain the non-GAAP financial measures of revenues and operating income excluding revenues from termination fees and deconverted clients and, with respect to year to date revenues and operating income, the impact of the acquisition of FNMS, and revenues and operating results on a constant currency basis, respectively, to describe TSYS’ performance. Management uses these non-GAAP financial measures to better understand and assess TSYS’ operating results and financial performance. TSYS believes these non-GAAP financial measures provide meaningful additional information about TSYS to assist investors in understanding and evaluating its operating results.

Additional information about non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 10 and 11 of this release.

Page 2 of 12

PRESS RELEASE

About TSYS

TSYS (NYSE: TSS) is one of the world’s largest companies for outsourced payment services, offering a broad range of issuer- and acquirer-processing technologies that support consumer-finance, credit, debit, healthcare, loyalty and prepaid services for financial institutions and retail companies in the Americas, EMEA and Asia-Pacific regions. For more information contact news@tsys.com or log on to www.tsys.com. TSYS routinely posts all important information on its Web site.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding TSYS’ earnings guidance for 2010 total revenues, revenues before reimbursable items, income from continuing operations and EPS from continuing operations, and the assumptions underlying such statements including, with respect to TSYS’ earnings guidance for 2010: (1) the economy will not worsen during 2010; (2) there will be no deconversions of large clients during the year other than as previously announced; (3) there will be no significant movement in foreign currency exchange rates related to TSYS’ business during 2010; (4) the anticipated levels in employment, technology and other expenses, which are included in 2010 estimates, will be accomplished; (5) TSYS will not incur significant expenses associated with the conversion of new large clients or acquisitions, or any significant impairment of goodwill or other intangibles; and (6) there will be no significant movements in LIBOR, and no significant draws on the remaining balance of TSYS’ revolving credit facility. These statements are based on 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 in this press release. Many of these factors are beyond TSYS’ ability to control or predict. These factors include, but are not limited to: (1) one or more of the assumptions set forth above upon which TSYS’ 2010 earnings guidance is based is inaccurate; (2) adverse developments with respect to entering into contracts with new clients and retaining current clients; (3) continued consolidation and turmoil in the financial services and other industries during 2010, 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 the nationalization or seizure by banking regulators of TSYS clients; (4) TSYS is unable to control expenses and increase market share both domestically and internationally; (5) TSYS is unable to manage the impact of slowing economic conditions and consumer spending; (6) the material breach of security of any of TSYS’ systems; (7) the impact of potential and completed acquisitions, including the costs associated therewith and their being more difficult to integrate than anticipated; (8) changes occur in laws, rules, regulations, credit card association rules or other industry standards affecting TSYS’ business which require significant product development efforts or reduce the market demand for or value of its products; (9) adverse developments with respect to the credit card industry in general, including a decline in the use of credit cards as a payment mechanism; and (10) internal growth rates of TSYS’ existing clients are lower than anticipated whether as a result of unemployment rates, card delinquencies and charge-off rates or otherwise. Additional factors that could cause actual results to differ materially from those contemplated in this release can be found in TSYS’ filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

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Page 3 of 12

TSYS Announces 2010 Earnings
Page 4 of 12

TSYS
Financial Highlights
(unaudited)
(in thousands, except per share data)

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
							Percent									Percent
	2010			2009			Change			2010			2009			Change
Total revenues	$	433,236			428,917			1.0	%	$	1,277,586			1,244,954			2.6	%
Cost of services		302,692			294,596			2.7			889,110			855,480			3.9
Selling, general and administrative expenses		51,630			46,027			12.2			150,021			139,355			7.7
Operating income		78,914			88,294			(10.6	)		238,455			250,119			(4.7	)
Nonoperating income (expenses)		31			575		nm				(1,402	)		(3,162	)	nm
Income from continuing operations before income taxes, noncontrolling interests and equity in income of equity investments		78,945			88,869			(11.2	)		237,053			246,957			(4.0	)
Income taxes		27,879			31,911			(12.6	)		84,249			88,848			(5.2	)
Income from continuing operations before noncontrolling interests and equity in income of equity investments		51,066			56,958			(10.3	)		152,804			158,109			(3.4	)
Equity in income of equity investments		1,103			1,623			(32.0	)		4,363			4,292			1.7
Income from continuing operations, net of tax		52,169			58,581			(10.9	)		157,167			162,401			(3.2	)
Loss from discontinued operations, net of tax		(2,463	)		(3,255	)		24.3			(3,164	)		(6,116	)	nm
Net income		49,706			55,326			(10.2	)		154,003			156,285			(1.5	)
Net income attributable to noncontrolling interests		(3,963	)		(300	)	nm				(7,230	)		(1,286	)	nm
Net income attributable to TSYS common shareholders	$	45,743			55,026			(16.9	)%	$	146,773			154,999			(5.3	)%
Basic earnings per share:
Income from continuing operations to TSYS common shareholders	$	0.25			0.30			(17.1	)%	$	0.76			0.82			(6.9	)%
Loss from discontinued operations to TSYS common shareholders		(0.01	)		(0.02	)	nm				(0.02	)		(0.03	)	nm
Net income attributable to TSYS common shareholders	$	0.23			0.28			(16.7	)%	$	0.74			0.79			(5.3	)%
Diluted earnings per share:
Income from continuing operations to TSYS common shareholders	$	0.25			0.30			(17.1	)%	$	0.76			0.82			(6.9	)%
Loss from discontinued operations to TSYS common shareholders		(0.01	)		(0.02	)	nm				(0.02	)		(0.03	)	nm
Net income attributable to TSYS common shareholders	$	0.23			0.28			(16.7	)%	$	0.74			0.79			(5.3	)%
Dividends declared per share	$	0.07			0.07					$	0.21			0.21
Amounts attributable to TSYS common shareholders:
Income from continuing operations, net of tax	$	48,206			58,281			(17.3	)%	$	149,937			161,115			(6.9	)%
(Loss) income from discontinued operations, net of tax		(2,463	)		(3,255	)	nm				(3,164	)		(6,116	)	nm
Net income	$	45,743			55,026			(16.9	)%	$	146,773			154,999			(5.3	)%

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

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TSYS Announces 2010 Earnings
Page 5 of 12

TSYS
Earnings Per Share
(unaudited)
(in thousands, except per share data)

	Three Months Ended					Three Months Ended					Nine Months Ended					Nine Months Ended
	September 30, 2010					September 30, 2009					September 30, 2010					September 30, 2009
	Common			Participating		Common			Participating		Common			Participating		Common			Participating
	Stock			Securities		Stock			Securities		Stock			Securities		Stock			Securities
Basic Earnings per share:
Net income	$	45,743					55,026				$	146,773				$	154,999
Less income allocated to nonvested awards		(225	)		225		(407	)		407		(738	)		738		(1,225	)		1,225
Net income allocated to common stock for EPS calculation ( a )	$	45,518			225		54,619			407	$	146,035			738	$	153,774			1,225
Average common shares outstanding ( b )		195,679			974		195,721			1,465		196,060			996		195,552			1,564
Average common shares and participating securities		196,653					197,186					197,056					197,116
Basic Earnings per share ( a )/( b )	$	0.23			0.23		0.28			0.28	$	0.74			0.74	$	0.79			0.78
Diluted Earnings per share:
Net income	$	45,743					55,026				$	146,773				$	154,999
Less income allocated to nonvested awards		(226	)		226		(407	)		407		(739	)		739		(1,225	)		1,225
Net income allocated to common stock for EPS calculation ( c )	$	45,517			226		54,619			407	$	146,034			739	$	153,774			1,225
Average common shares outstanding		195,679			974		195,721			1,465		196,060			996		195,552			1,564
Increase due to assumed issuance of shares related to common equivalent shares outstanding		79					63					86					63
Average common and common equivalent shares outstanding ( d )		195,758			974		195,784			1,465		196,146			996		195,615			1,564
Average common and common equivalent shares and participating securities		196,732					197,249					197,142					197,179
Diluted Earnings per share ( c )/( d )	$	0.23			0.23		0.28			0.28	$	0.74			0.74	$	0.79			0.78

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TSYS Announces 2010 Earnings
Page 6 of 12

TSYS
Segment Breakdown
(unaudited)
(in thousands)

	Three Months Ended September 30,												Nine Months Ended September 30,
							Change												Change
	2010			2009			$			%			2010			2009			$			%
Revenues before reimbursable items
North America Services	$	192,900			219,909			(27,009	)		(12.3)	%		610,271			666,641			(56,370	)		(8.5)	%
International Services		82,249			82,566			(317	)		(0.4)	%		233,299			226,433			6,866			3.0	%
Merchant Services		95,034			60,427			34,607			57.3	%		243,695			175,896			67,799			38.5	%
Intersegment revenues		(6,991	)		(7,315	)		324			(4.4)	%		(18,673	)		(22,105	)		3,432			(15.5)	%
Revenues before reimbursable items from external customers	$	363,192			355,587			7,605			2.1	%		1,068,592			1,046,865			21,727			2.1	%
Total revenues
North America Services	$	231,547			261,580			(30,033	)		(11.5)	%		722,585			795,354			(72,769	)		(9.1)	%
International Services		85,327			86,172			(845	)		(1.0)	%		242,706			236,406			6,300			2.7	%
Merchant Services		125,178			90,455			34,723			38.4	%		336,402			241,402			95,000			39.4	%
Intersegment revenues		(8,816	)		(9,290	)		474			(5.1)	%		(24,107	)		(28,208	)		4,101			(14.5)	%
Revenues from external customers	$	433,236			428,917			4,319			1.0	%		1,277,586			1,244,954			32,632			2.6	%
Depreciation and amortization
North America Services	$	19,523			20,189			(666	)		(3.3)	%		58,817			64,218			(5,401	)		(8.4)	%
International Services		10,143			9,860			283			2.9	%		27,335			25,709			1,626			6.3	%
Merchant Services		9,725			8,111			1,614			19.9	%		30,516			24,167			6,349			26.3	%
Corporate Admin		663			986			(323	)		(32.8)	%		2,255			2,644			(389	)		(14.7)	%
Total depreciation and amortization	$	40,054			39,146			908			2.3	%		118,923			116,738			2,185			1.9	%
Segment operating income
North America Services	$	52,645			72,173			(19,528	)		(27.1)	%		188,650			214,224			(25,574	)		(11.9)	%
International Services		12,305			14,047			(1,742	)		(12.4)	%		35,260			36,415			(1,155	)		(3.2)	%
Merchant Services		31,439			19,198			12,241			63.8	%		72,662			51,981			20,681			39.8	%
Corporate Admin		(17,475	)		(17,124	)		(351	)		2.0	%		(58,117	)		(52,501	)		(5,616	)		10.7	%
Operating income	$	78,914			88,294			(9,380	)		(10.6)	%		238,455			250,119			(11,664	)		(4.7)	%
Other:
Reimbursable items:
North America Services	$	38,647			41,671			(3,024	)		(7.3)	%		112,315			128,713			(16,398	)		(12.7)	%
International Services		3,078			3,606			(528	)		(14.6)	%		9,407			9,973			(566	)		(5.7)	%
Merchant Services		30,144			30,028			116			0.4	%		92,707			65,505			27,202			41.5	%
Intersegment revenues		(1,825	)		(1,975	)		150			(7.6)	%		(5,435	)		(6,102	)		667			(10.9)	%
Reimbursable items	$	70,044			73,330			(3,286	)		(4.5)	%		208,994			198,089			10,905			5.5	%
Volumes:
FTEs (continuing operations)
North America Services														4,323			4,749			(426	)		(9.0)	%
International Services														2,006			1,872			134			7.2	%
Merchant Services														1,110			725			385			53.1	%
Corporate Admin														329			331			(2	)		(0.6)	%
FTEs														7,768			7,677			91			1.2	%
													At						Change
Total assets (in thousands)													9/30/2010			12/31/2009			$			%
North America Services													$	1,569,728			1,535,129			34,599			2.3	%
International Services														416,066			379,606			36,460			9.6	%
Merchant Services														519,806			215,855			303,951			140.8	%
Intersegment assets														(584,645	)		(419,636	)		(165,009	)		39.3	%
Total assets													$	1,920,955			1,710,954			210,001			12.3	%

	Three Months Ended September 30,										Nine Months Ended September 30,
					Change										Change
	2010		2009		Inc(Dec)			%			2010		2009		Inc(Dec)			%
North America Segment:
Accounts on File (AOF) (in millions)												293.8		302.2		(8.4	)		(2.8)	%
Transactions (in millions)		1,658.3		1,555.8		102.5			6.6	%		4,680.2		4,559.1		121.1			2.7	%
International Segment:
AOF (in millions)												45.4		39.9		5.5			13.8	%
Transactions (in millions)		322.9		299.7		23.2			7.7	%		902.0		818.8		83.2			10.2	%
Merchant Segment:
POS Transactions (in millions)		1,344.9		1,420.5		(75.6	)		(5.3)	%		4,079.7		3,876.3		203.4			5.2	%

     Certain amounts have been reclassified to conform with the presentation adopted in 2010.

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TSYS Announces 2010 Earnings
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TSYS
Balance Sheet
(in thousands)

	Sep 30, 2010			Dec 31, 2009
	(unaudited)			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	372,600			450,254
Restricted cash		498			46,190
Accounts receivable, net		264,775			231,162
Deferred income tax assets		7,195			11,302
Prepaid expenses and other current assets		100,980			68,527
Assets of discontinued operations		983			3,461
Total current assets		747,031			810,896
Property and equipment, net		298,766			289,069
Computer software, net		213,632			196,764
Contract acquisition costs, net		144,553			128,038
Goodwill		321,219			165,896
Equity investments, net		74,024			75,495
Other intangible assets, net		86,546			14,132
Other assets		35,184			27,940
Assets of discontinued operations		—			2,724
Total assets	$	1,920,955			1,710,954
Liabilities
Current liabilities:
Current portion of notes payable	$	3,563			6,988
Accrued salaries and employee benefits		21,038			32,231
Accounts payable		56,733			21,487
Current portion of obligations under capital leases		10,296			6,289
Other current liabilities		127,128			152,742
Current liabilities of discontinued operations		380			1,042
Total current liabilities		219,138			220,779
Notes payable, excluding current portion		192,522			192,367
Deferred income tax liabilities		56,072			47,162
Obligations under capital leases, excluding current portion		32,292			12,756
Other long-term liabilities		45,531			48,443
Total liabilities		545,555			521,507
Redeemable noncontrolling interest		116,728			—
Equity
Shareholders’ equity:
Common stock		20,131			20,086
Additional paid-in capital		150,329			139,742
Accumulated other comprehensive income, net		2,375			5,673
Treasury stock		(115,449	)		(69,950	)
Retained earnings		1,185,590			1,080,250
Total shareholders’ equity		1,242,976			1,175,801
Noncontrolling interests in consolidated subsidiaries		15,696			13,646
Total equity		1,258,672			1,189,447
Total liabilities and equity	$	1,920,955			1,710,954

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TSYS Announces 2010 Earnings
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TSYS
Cash Flow
(unaudited)
(in thousands)

	Nine Months Ended September 30,
	2010			2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	154,003			156,285
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of equity investments		(4,363	)		(4,292	)
Dividends received from equity investments		6,572			4,942
Net loss (gain) on currency translation adjustments		34			2,857
Depreciation and amortization		119,107			117,514
Amortization of debt issuance costs		115			115
Share-based compensation		11,727			13,245
Excess tax benefit from share-based payment arrangements		(111	)		(6	)
Provisions for bad debt expense and billing adjustments		(162	)		3,855
Charges for transaction processing provisions		2,860			4,993
Deferred income tax benefit		13,022			(3,716	)
(Gain) loss on disposal of equipment, net		224			(20	)
Loss on disposal of subsidiary		1,641			5,701
(Increase) decrease in:
Accounts receivable		(33,997	)		6,095
Prepaid expenses, other current assets and other long-term assets		(17,775	)		23,770
Increase (decrease) in:
Accounts payable		34,340			(331	)
Accrued salaries and employee benefits		(27,616	)		(16,166	)
Other current liabilities and other long-term liabilities		24,853			18,215
Net cash provided by operating activities		284,474			333,056
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net		(29,848	)		(21,344	)
Additions to licensed computer software from vendors		(27,224	)		(18,710	)
Additions to internally developed computer software		(15,220	)		(19,367	)
Proceeds from dispositions, net of expenses paid and cash disposed		4,224			1,991
Cash used in acquisitions, net of cash acquired		(148,531	)		(294	)
Additions to contract acquisition costs		(47,351	)		(23,711	)
Net cash used in investing activities		(263,950	)		(81,435	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings of long-term debt		—			5,334
Principal payments on long-term debt borrowings and capital lease obligations		(11,938	)		(13,178	)
Proceeds from exercise of stock options		543			2
Excess tax benefit from share-based payment arrangements		111			6
Repurchase of common stock		(46,228	)		(329	)
Subsidiary dividends paid to noncontrolling shareholders		(250	)		(235	)
Dividends paid on common stock		(41,432	)		(41,406	)
Net cash used in financing activities		(99,194	)		(49,806	)
CASH AND CASH EQUIVALENTS:
Effect of exchange rate changes on cash and cash equivalents		1,310			(1,693	)
Net increase (decrease) in cash and cash equivalents		(77,360	)		200,122
Cash and cash equivalents at beginning of period		449,955			220,019
Cash and cash equivalents at end of period	$	372,595			420,141

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TSYS Announces 2010 Earnings
Page 9 of 12

Supplemental Information:

	Accounts on File at September 30,
(in millions)	2010		%			2009		%			Percent Change
Consumer		180.2		53.1	%		189.2		55.3	%		(4.8	)%
Commercial		51.9		15.3			46.0		13.4			12.9
Stored Value		51.4		15.2			37.7		11.1			36.3
Government services		26.9		7.9			24.6		7.2			9.3
Retail		23.1		6.8			39.2		11.4			(40.9	)
Debit		5.1		1.5			5.3		1.6			(5.6	)
Healthcare		0.6		0.2			0.1		—		nm
		339.2		100.0	%		342.1		100.0	%		(0.8	)%

Growth in Accounts on File (in millions):

	September 2009 to			September 2008 to
	September 2010			September 2009
Beginning balance		342.1			355.5
Change in accounts on file due to:
Internal growth of existing clients		20.8			29.6
New clients		33.2			25.7
Purges/Sales		(40.3	)		(31.3	)
Deconversions		(16.6	)		(37.4	)
Ending balance		339.2			342.1

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TSYS Announces 2010 Earnings
Page 10 of 12

Reconciliation of GAAP to Non-GAAP

Non-GAAP Measures

The schedule below provides a reconciliation of revenues and operating results on a constant currency basis to reported revenues and operating income. This non-GAAP measure presents year-to-date 2010 financial results using the previous year’s foreign currency exchange rates. On a year-to-date constant currency basis, TSYS’ total revenues grew 2.5% as compared to a reported GAAP increase of 2.6%, and operating income decreased 4.3% versus a GAAP-reported decrease of 4.7%. The schedule below also provides a reconciliation of revenues and operating income excluding revenues from termination fees and deconverted clients and, with respect to year to date revenues and operating income, the impact of the acquisition of FNMS to reported total revenues and operating income.

The non-GAAP financial measures of constant currency and revenues and operating income excluding revenues from termination fees and deconverted clients and, with respect to year to date revenues and operating income, the impact of the FNMS acquisition presented by TSYS are utilized by management to better understand and assess TSYS’ operating results and financial performance. TSYS also uses the non-GAAP financial measures to evaluate and assess TSYS’ financial performance against budget, as well as to evaluate financial performance for executive and management compensation purposes.

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.

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TSYS Announces 2010 Earnings
Page 11 of 12

Reconciliation of GAAP to Non-GAAP

Constant Currency Comparison
(unaudited)
(in thousands)

	Three Months Ended September 30,
						Percent
	2010			2009		Change
Consolidated
Constant currency (1)	$	435,981			428,917		1.6	%
Foreign currency (2)		(2,745	)		—		(0.6	)
Total revenues	$	433,236			428,917		1.0	%
Constant currency (1)	$	80,004			88,294		(9.4	)%
Foreign currency (2)		(1,090	)		—		(1.2	)
Operating income	$	78,914			88,294		(10.6	)%

	Nine Months Ended September 30,
						Percent
	2010			2009		Change
Consolidated
Constant currency (1)	$	1,275,834			1,244,954		2.5	%
Foreign currency (2)		1,752			—		0.1
Total revenues	$	1,277,586			1,244,954		2.6	%
Constant currency (1)	$	239,348			250,119		(4.3	)%
Foreign currency (2)		(893	)		—		(0.4	)
Operating income	$	238,455			250,119		(4.7	)%

(1)	Reflects current period results on a non-GAAP basis as if foreign currency rates did not change from the comparable prior year period.
(2)	Reflects the impact of calculated changes in foreign currency rates from the comparable period.

Normalized Results — Revenue and Operating Income Excluding Termination Fees and
Deconverted Clients
(unaudited)
(in thousands)

	Three Months Ended
	September 30,		June 30,		Percent
	2010		2010		Change
Consolidated
Total Revenues	$	433,236		430,887		0.5	%
Less:
Termination Fees and Deconverted Clients		41		9,939
Total revenues excluding termination fees and deconverted clients	$	433,195		420,948		2.9	%
Operating income	$	78,914		79,830		(1.1	)%
Less:
Termination Fees and Deconverted Clients		41		9,939
Operating income excluding termination fees and deconverted clients	$	78,873		69,891		12.9	%

Normalized Results — Revenue and Operating Income Excluding Termination Fees,

Deconverted Clients and Impact of FNMS

(unaudited)

(in thousands)

	Nine Months Ended September 30,
					Percent
	2010		2009		Change
Consolidated
Total Revenues	$	1,277,586		1,244,954		2.6
Less:
Termination Fees, Deconverted Clients, and Acquisition of FNMS		107,172		82,669
Total revenues excluding termination fees, deconverted clients and FNMS	$	1,170,414		1,162,285		0.7
Operating income	$	238,455		250,119		(4.7	)%
Less:
Termination Fees, Deconverted Clients and Acquisition of FNMS		52,337		82,669
Operating income excluding termination fees, deconverted clients and FNMS	$	186,118		167,450		11.1	%

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TSYS Announces 2010 Earnings
Page 12 of 12

2009 & 2010 Income Statement Presenting TPOS as Discontinued Operations
(unaudited)
(in thousands)

	Three Months Ended												YTD			Three Months Ended
	March 31,			June 30,			September 30,			December 31,			December 31,			March 31,			June 30,			September 30,
	2009			2009			2009			2009			2009			2010			2010			2010
Total revenues	$	406,795			409,242			428,917			432,529		$	1,677,483		$	413,464			430,886			433,236
Cost of services		282,910			277,974			294,596			294,403			1,149,883			290,538			295,880			302,692
Selling, general and administrative expenses		45,114			48,214			46,027			44,218			183,573			43,213			55,178			51,630
Total expenses
Operating income		78,771			83,054			88,294			93,908			344,027			79,713			79,828			78,914
Nonoperating income		(1,458	)		(2,279	)		575			(279	)		(3,441	)		(261	)		(1,172	)		31
Income before income taxes		77,313			80,775			88,869			93,629			340,586			79,452			78,656			78,945
Income taxes		27,657			29,280			31,911			33,002			121,850			28,096			28,273			27,879
Income before equity income		49,656			51,495			56,958			60,627			218,736			51,356			50,383			51,066
Equity income		1,043			1,626			1,623			2,694			6,986			893			2,366			1,103
Income from continuing operations, net of tax		50,699			53,121			58,581			63,321			225,722			52,249			52,749			52,169
Income from discontinued operations, net of tax		(3,758	)		897			(3,255	)		(429	)		(6,545	)		(428	)		(273	)		(2,463	)
Net income		46,941			54,018			55,326			62,892			219,177			51,821			52,476			49,706
Noncontrolling interests		(415	)		(571	)		(300	)		(2,678	)		(3,964	)		(493	)		(2,774	)		(3,963	)
Net income attributable to TSYS common shareholders	$	46,526			53,447			55,026			60,214		$	215,213		$	51,328			49,702			45,743
Income from continuing operations, net of tax attributable to TSYS commons shareholders	$	50,284			52,550			58,281			60,643		$	221,758		$	51,756			49,975			48,206

- #### -

EX-99.2

Exhibit 99.2

2010 Third Quarter Results October 20, 2010 (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Forward-Looking Statements This presentation and comments made by management contain forward-looking statements including, among others, statements regarding the expected future operating results of TSYS. These statements are based on management's current expectations and assumptions and are subject to risks, uncertainties and changes in circumstances. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors. More information about these risks, uncertainties and factors may be found in TSYS' 2009 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. TSYS does not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise. (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 2

Use of Non-GAAP Financial Measures This slide presentation contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles. Such non-GAAP financial measures include the following: revenues before reimbursable items, operating margin excluding reimbursable items and the impact of the acquisition of FNMS, revenues measured on a constant currency basis, free cash flow and EBITDA. The most comparable GAAP measures to these measures are revenues, operating margin, revenues, cash flows from operating activities and net income, respectively. Management uses these non-GAAP financial measures to assess the performance of TSYS' core business. TSYS believes that these non-GAAP financial measures provide meaningful additional information about TSYS to assist investors in evaluating TSYS' operating results. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this slide presentation are set forth in the Appendix to this slide presentation. (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 3

(c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 4 Agenda Financial Highlights Phil Tomlinson, Chairman and CEO Jim Lipham, Chief Financial Officer Q&A

Phil Tomlinson Chairman and Chief Executive Officer (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Jim Lipham Chief Financial Officer (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

(c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 7 Consolidated Selected Financial Highlights

(c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 8 Net Acquisition Impact - FNMS

2010 Revenue Change Revenues Before Reimbursable Items (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 9 (5%) 5% 10% 2010 YTD vs. 2009 YTD 0% 2% Reported New Clients 2% Currency 0% Internal Growth 3% (9%) Lost Business, Non-recurring Items and Price Compression Acquisitions 6% 15% 20%

(c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 10 Account on File Portfolio Summary Portfolio Summary

Key Drivers 3Q 2010 Year Over Year Segment Financial Highlights ($20.6 million) revenues associated with deconverted clients or lost business Operating margin excluding reimbursable items decreased 553 basis points Volumes FTEs 4,300 Accounts on file were 293.8 million Total cardholder transactions were 1,658.3 million, an increase of 6.6% (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 11 Revenues $231.5 million Revenues Excluding Reimbursables $192.9 million Operating Income $52.6 million Operating Margin 22.7% Operating Margin Excluding Reimbursables 27.3% Same Client Transactions 1,582.6 million Increase of 5.3% North America Services

Key Drivers 3Q 2010 Year Over Year Segment Financial Highlights Negative currency impact on revenues of $2.7 million Operating margin excluding reimbursable items decreased 205 basis points Volumes FTEs 2,000 Accounts on file were 45.4 million Total cardholder transactions were 322.9 million, an increase of 7.7% (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 12 Revenues $85.3 million Revenues Constant currency basis $88.0 million Operating Income $12.3 million Operating Margin 14.4% Operating Margin Excluding Reimbursables 15.0% Same Client Transactions 310.8 million Increase of 4.3% International Services

Key Drivers 3Q 2010 Year Over Year Segment Financial Highlights Internal growth improved to 6.1% Acquisition of controlling interest in FNMS Operating margin excluding reimbursable items and FNMS was 38.8% Volumes FTEs 1,100 Point-of-sale transactions were 1.3 billion, an increase of 0.5% (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 13 Revenues $125.2 million Revenues Excluding Reimbursables $95.0 million Operating Income $31.4 million Operating Margin 25.1% Operating Margin Excluding Reimbursables 33.1% Merchant Services

Key Drivers 3Q 2010 Year Over Year Segment Financial Highlights Contains costs associated with corporate administrative functions Executive, finance, legal, human resources Mergers & acquisitions Increased $0.4 million over last year Volumes FTEs 300 (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 14 Operating Expenses $17.5 million Corporate Administration

Cash Flow Strength: 2010 TTM Consolidated Financial Highlights (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 15 TTM = Trailing Twelve Months (dollars in millions)

Q&A (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 16

Appendix (c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 17

(c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 18 Appendix Non-GAAP Reconciliation - Revenues Before Reimbursable Items

(c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 19 Appendix Non-GAAP Reconciliation - Segment Operating Margin Excluding Reimbursable Items

(c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 20 Appendix Non-GAAP Reconciliation - Constant Currency

(c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 21 Appendix Non-GAAP Reconciliation - EBITDA

(c)2010 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 22 Appendix Non-GAAP Reconciliation - Free Cash Flow