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2010-03-31
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2009-12-31
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2010-01-01
2010-03-31
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2011-03-31
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2010-12-31
0000721683
2010-06-30
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2011-05-06
0000721683
2011-01-01
2011-03-31
iso4217:USD
xbrli:shares
xbrli:shares
iso4217:USD
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<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="left">
</div>
<div align="center" style="font-size: 10pt"><b></b></div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 1 — Basis of Presentation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The accompanying unaudited condensed consolidated financial statements of Total System
Services, Inc.<sup style="font-size: 85%; vertical-align: text-top">®</sup> (TSYS<sup style="font-size: 85%; vertical-align: text-top">®</sup> or the Company) include the accounts of TSYS and its wholly and majority
owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in
consolidation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     These financial statements have been prepared in accordance with the instructions to Form 10-Q
and do not include all information and footnotes necessary for a fair presentation of financial
position, results of operations and cash flows 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. All adjustments, consisting of normal recurring accruals, which, in the opinion of
management, are necessary for a fair presentation of financial position and results of operations
for the periods covered by this report, have been included.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The accompanying unaudited condensed consolidated financial statements should be read in
conjunction with the Company’s summary of significant accounting policies, consolidated financial
statements and related notes appearing in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2010. Results of interim periods are not necessarily indicative of results to be
expected for the year.
</div>
</div>
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<div align="left" style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 2 — Fair Value Measurement</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     ASC 820, <i>“Fair Value Measurements and Disclosure,” </i>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:
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><b>Level 1 </b>– Quoted prices for identical assets and liabilities in active markets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><b>Level 2 </b>– 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.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><b>Level 3 </b>– Unobservable inputs for the asset or liability.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In February 2007, the Financial Accounting Standards Board (FASB) issued authoritative
guidance under ASC 825, <i>“Financial Instruments.” </i>ASC 825 permits the Company to choose to measure
many financial instruments and certain other items at fair value. Upon adoption of the guidance on
January 1, 2008, TSYS did not elect the fair value option for any financial instrument it did not
currently report at fair value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Goodwill and certain intangible assets not subject to amortization are 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 with its book value, including goodwill. If the fair value of the reporting unit
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 reporting unit 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 reporting
unit’s goodwill with the book value of that goodwill. If the book value of the reporting unit’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 reporting unit is allocated to all of the assets
and liabilities of that unit as if the reporting unit had been acquired in a business combination
and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The estimate of fair value of the Company’s reporting units is determined using various
valuation techniques, including using the 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 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 of the invested capital. Cash flows are estimated
for future periods based upon historical data and projections by management.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At March 31, 2011, the Company had recorded goodwill in the amount of $322.0 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of the Company’s long-term debt and obligations under capital leases is not
significantly different from its carrying value.
</div>
</div>
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<div align="left" style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 3 — Supplementary Balance Sheet Information</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Cash and Cash Equivalents</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company maintains 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.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Cash and cash equivalent balances are summarized as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>(in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>March 31, 2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31, 2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and cash equivalents in domestic accounts
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>195,577</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">347,734</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and cash equivalents in foreign accounts
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>56,911</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47,061</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>252,488</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">394,795</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At March 31, 2011 and December 31, 2010, the Company had approximately $31.4 million and $29.9
million in Money Market accounts that had an original maturity date of 90 days or less. The
Company considers cash equivalents to be short-term, highly liquid investments that are both
readily convertible to known amounts of cash and so near their maturity at the time of purchase
that they present insignificant risk of changes in value because of change in interest rates.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Prepaid Expenses and Other Current Assets</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Significant components of prepaid expenses and other current assets are summarized as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>(in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>March 31, 2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31, 2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Prepaid expenses
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>20,396</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,421</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Supplies inventory
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>5,045</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,138</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income taxes receivable
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,977</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>47,486</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41,675</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>72,927</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77,211</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Contract Acquisition Costs, net</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Significant components of contract acquisition costs, net of accumulated amortization, are
summarized as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>(in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>March 31, 2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31, 2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Conversion costs, net of
accumulated amortization of $96.7
million and $90.9 million at 2011
and 2010, respectively
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>85,788</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">80,521</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Payments for processing rights, net
of accumulated amortization of
$175.6 million and $169.8 million at
2011 and 2010, respectively
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>81,746</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">85,730</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>167,534</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">166,251</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Amortization expense related to conversion costs, which is recorded in cost of services, was
$4.5 million and $4.1 million for the three months ended March 31, 2011 and 2010, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Amortization related to payments for processing rights, which is recorded as a reduction of
revenues, was $3.9 million and $5.8 million for the three months ended March 31, 2011 and 2010,
respectively.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Other Current Liabilities</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Significant components of other current liabilities are summarized as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>(in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>March 31, 2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31, 2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred revenues
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>35,936</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34,184</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>28,822</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,999</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dividends payable
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>13,529</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,634</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>10,982</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,920</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>31,611</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,303</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>120,880</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">111,040</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 4 - us-gaap:LongTermDebtTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 4 — Long-Term Debt</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Refer to Note 13 of the Company’s audited financial statements for the year ended December 31,
2010, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year
ended December 31, 2010, as filed with the SEC, for a discussion regarding long-term debt.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - us-gaap:ComprehensiveIncomeNoteTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 5 — Comprehensive Income</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For the three months ended March 31, comprehensive income is summarized below:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>Three months ended March 31, 2011</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">Three months ended March 31, 2010</td>
<td style="border-bottom: 1px solid #000000"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>TSYS</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Noncontrolling</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">TSYS</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Noncontrolling</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><i>(in thousands)</i></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Shareholders</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Interests</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Shareholders</td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Interests</td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Total</td>
<td style="border-bottom: 1px solid #000000"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>48,790</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>622</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>49,412</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">51,327</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">492</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">51,819</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other comprehensive
income (OCI), net
of tax:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency
translation
adjustments
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>10,172</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>99</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>10,271</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,855</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(721</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13,576</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Change in
accumulated OCI
related to
postretirement
healthcare plans
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(182</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(182</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">37</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="23" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>58,780</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>721</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>59,501</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">38,509</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(229</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">38,280</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The income tax effects allocated to and the cumulative balance of accumulated other
comprehensive income (loss) are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Beginning Balance</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Pretax</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Ending Balance</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>(in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31, 2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Amount</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Tax Effect</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Net-of-Tax Amount</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">March 31, 2011</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(1,242</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right"><b>12,281</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(2,109</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right"><b>10,172</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>8,930</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Change in accumulated OCI related to
postretirement healthcare plans
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,343</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(285</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right"><b>103</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(182</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,525</b></td>
<td nowrap="nowrap"><b>)</b></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(2,585</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right"><b>11,996</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(2,006</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">9<b>,990</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>7,405</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Consistent with its overall strategy of pursuing international investment opportunities,
TSYS adopted the permanent reinvestment exception under ASC 740, <i>“Income Taxes,” </i>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.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 6 — Share-Based Compensation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s Annual Report on Form 10-K for the year ended December 31, 2010, as filed with
the SEC, contains a discussion of the Company’s share-based compensation plans and policy.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Share-Based Compensation</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     TSYS’ share-based compensation costs are included as expenses and classified as cost of
services and selling, general, and administrative expenses. 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 three months ended March 31, 2011, share-based compensation was
$4.3 million, compared to $2.9 million for the same period in 2010. Included in the $4.3 million
amount for 2011 and $2.9 million amount for 2010 is approximately $1.9 million and $1.0 million,
respectively, related to expensing the fair value of stock options.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Nonvested and Performance Share Awards</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first three months of 2011, the Company issued 193,971 shares of TSYS common stock
with a market value of $3.4 million to certain key employees and non-management members of its
Board of Directors under nonvested stock bonus awards for services to be provided in the future by
such officers, directors and employees. The market value of the TSYS common stock at the date of
issuance is amortized as compensation expense over the vesting period of the awards.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first three months of 2010, the Company issued 189,934 shares of TSYS common stock
with a market value of $3.0 million to certain key employees and non-management members of its
Board of Directors under nonvested stock bonus awards for services to be provided in the future by
such officers, directors and employees. The market value of the TSYS common stock at the date of
issuance is amortized as compensation expense over the vesting period of the awards.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of March 31, 2011, there was approximately $9.9 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 2.1 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first three months of 2008, TSYS authorized a total grant of 182,816 shares of
nonvested stock to two key executives with a performance schedule (2008 performance shares). These
2008 performance shares have seven one-year performance periods (2008-2014) during each of which
the Compensation Committee establishes an earnings per share goal and, if such goal is attained
during any performance period, 20% of the performance shares will vest, up to a maximum of 100% of
the total grant. Compensation expense for each year’s award is measured on the grant date based on
the quoted market price of TSYS common stock and is expensed on a straight-line basis for the year.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of March 31, 2011, there was approximately $661,000 of total unrecognized compensation cost
related to the 2008 grant of nonvested performance share-based compensation arrangements. That cost
is expected to be recognized over the remainder of 2011.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 15, 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
established two performance goals: revenues before reimbursables and income from continuing
operations and, if such goals are attained in 2012, 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 will estimate the
probability of achieving the goals through the performance period and will expense the award on a
straight-line basis.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 31, 2010, TSYS authorized a total grant of 279,831 performance shares to certain key
executives with a performance based vesting schedule (2010 performance shares). These 2010
performance shares have a 2010-2012 performance period for which the Compensation Committee
established two performance goals: revenues before reimbursables and income from continuing
operations and, if such goals are attained in 2012, 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 will estimate the
probability of achieving the goals through the performance period and will expense the award on a
straight-line basis.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of March 31, 2011, there was approximately $7.3 million of total unrecognized compensation
cost related to the 2010 and 2011 performance shares compensation arrangement. That cost is
expected to be recognized until the end of 2013.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Stock Option Awards</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first three months of 2011, the Company granted 699,426 stock options to key TSYS
executive officers. The average fair value of the option grant was $5.77 per option and was
estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the
following weighted average assumptions: exercise price of $17.57; risk-free interest rate of 2.96%;
expected volatility of 30.0%; expected term of 8.5 years; and dividend yield of 1.59%. The grant
will vest over a period of 3 years.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first three months of 2010, the Company granted 736,389 stock options to key TSYS
executive officers. The average fair value of the option grant was $5.33 per option and was
estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the
following weighted average assumptions: exercise price of $15.66; risk-free interest rate of 3.77%;
expected volatility of 30.0%; expected term of 8.6 years; and dividend yield of 1.79%. The grant
will vest over a period of 3 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of March 31, 2011, there was approximately $9.5 million of total unrecognized compensation
cost related to TSYS stock options that is expected to be recognized over a remaining weighted
average period of 2.2 years.
</div>
</div>
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<!-- Begin Block Tagged Note 7 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 7 — Income Taxes</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     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 2007 and with a few exceptions, the Company is no longer subject to
income tax examinations from state, local or foreign authorities for years before 2003. There are
currently no Federal tax examinations in progress. However, a number of tax examinations are in
progress by the relevant foreign and state tax authorities. Although TSYS is unable to determine
the ultimate outcome of these examinations, TSYS believes that its liability for uncertain tax
positions relating to these jurisdictions for such years is adequate.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     TSYS’ effective tax rate attributable to continuing operations was 34.0% and 35.2% for the
three months ended March 31, 2011 and March 31, 2010, respectively. The decreased rate during the
March 31, 2011 period was mostly due to differences in discrete charges and changes in the
jurisdictional sources of income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     TSYS adopted the provisions of ASC 740, <i>“Income Taxes,” </i>on January 1, 2007. This
interpretation prescribed 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. The amount of unrecognized tax benefits did not change significantly during the
three months ended March 31, 2011.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     TSYS recognizes potential interest and penalties related to the underpayment of income taxes
as income tax expense in the condensed consolidated statements of income. Gross accrued interest
and penalties on unrecognized tax benefits totaled $0.6 million and $1.1 million as of and March
31, 2011 and December 31, 2010, respectively. The total amounts of unrecognized income tax benefits
as of March 31, 2011 and December 31, 2010 that, if recognized, would affect the effective tax
rates are $3.7 million and $4.2 million (net of the Federal benefit on state tax issues),
respectively, which include interest and penalties of $0.5 million and $1.0 million. TSYS does not
expect any material changes to its calculation of uncertain tax positions during the next twelve
months.
</div>
</div>
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<!-- Begin Block Tagged Note 8 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 8 — Segment Reporting and Major Customers</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company reports selected information about operating segments in accordance with ASC 280,
<i>“Segment Reporting.” </i>The Company’s segment information reflects the information that the chief
operating decision maker (CODM) uses to make resource allocations and strategic decisions. The CODM
at TSYS consists of the chairman of the board and chief executive officer, the president and the
four senior executive vice presidents.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     TSYS provides electronic 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.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     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 merchant acquiring institutions.
Corporate administration expenses, such as finance, legal, human resources, mergers and
acquisitions and investor relations, that exist in all operating segments are accumulated and
categorized as Corporate Administration.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Operating Segments</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000">Three months ended March 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">Change</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 0px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 0px solid #000000">2010</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">$</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">%</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues before reimbursable items
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">North America Services
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>194,590</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">215,309</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(20,719</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9.6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">International Services
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>87,419</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76,281</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,138</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Merchant Services
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>86,519</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,773</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,746</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52.4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Intersegment revenues
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(5,885</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5,702</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(183</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3.2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Revenues before reimbursable items
from external customers
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>362,643</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">342,661</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19,982</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.8</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenues
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">North America Services
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>230,559</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">254,228</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(23,670</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9.3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">International Services
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>90,710</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">79,392</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,318</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.3</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Merchant Services
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>115,756</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">87,318</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,438</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Intersegment revenues
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(7,595</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(7,474</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(121</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1.6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Revenues from external customers
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>429,430</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">413,464</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,965</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">North America Services
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>19,467</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,403</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(936</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(4.6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">International Services
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>11,708</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,595</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,113</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Merchant Services
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>9,146</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,537</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">609</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate Administration
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>747</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">981</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(234</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(23.9</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total depreciation and amortization
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>41,068</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38,516</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,552</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.6</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Segment operating income
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">North America Services
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>55,200</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">69,788</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(14,588</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(20.9</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">International Services
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>11,024</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,283</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(259</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2.3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Merchant Services
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>26,923</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,856</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,067</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50.8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate Administration
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(20,119</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(19,215</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(904</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(4.7</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Operating income
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>73,028</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">79,712</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6,684</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(8.4</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" nowrap="nowrap" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">Change</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>At March 31, 2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">At December 31, 2010</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">$</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">%</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total Assets
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">North America Services
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1,580,240</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,632,882</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(52,642</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3.2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">International Services
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>427,518</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">408,880</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,638</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Merchant Services
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>444,219</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">460,750</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(16,531</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3.6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate Administration
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(666,952</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(550,251</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(116,701</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">21.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total Assets
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1,785,025</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,952,261</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(167,236</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(8.6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" nowrap="nowrap" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Revenues by Geographic Area</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Revenues for North America Services and Merchant Services include electronic payment
processing and other services provided from the United States to clients domiciled in the United
States or other countries. Revenues for International Services include electronic payment
processing and other services provided from facilities outside the United States to clients based
predominantly outside the United States.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following geographic data presents revenues based on the domicile of the Company’s
customers.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Three months ended March 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>(in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">United States
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>292.7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">293.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Europe*
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>65.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">62.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Canada
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>44.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36.7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Japan*
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>17.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mexico
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>7.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>429.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">413.5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">*</td>
<td> </td>
<td>Revenues are impacted by movements in foreign currency exchange rates. Refer to the discussion
under “Revenues” in the Results of Operations.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table reconciles geographic revenues to revenues by operating segment based on
the domicile of the Company’s customers.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="22" style="border-bottom: 1px solid #000000"><b>Three months ended March 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">North America Services</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">International Services</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Merchant Services</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>(in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">United States
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>178.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">206.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>113.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">86.7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Europe
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>0.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>65.6</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">62.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Canada
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>44.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Japan
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>17.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mexico
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>227.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">247.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>87.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>114.1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">87.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company maintains property and equipment, net of accumulated depreciation and
amortization, in the following geographic areas:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>(in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>At March 31, 2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">At December 31, 2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">United States
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>199.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">203.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Europe
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>58.6</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Japan
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>11.2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11.3</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>28.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26.7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>297.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">300.1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Major Customers</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For the three months ended March 31, 2011, the Company had one major customer which accounted
for approximately 12.5%, or $53.6 million, of total revenues. For the three months ended March 31,
2010, this major customer accounted for approximately 13.1%, or $54.5 million, of total revenues.
Revenues from major customers for the periods reported are primarily attributable to the North
America Services and Merchant Services segments.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - tss:SupplementaryCashFlowInformationTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 9 — Supplementary Cash Flow Information</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Nonvested Awards</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first three months of 2011 and 2010, the Company issued shares of common stock to
certain key employees and non-management members of its Board of Directors under nonvested stock
bonus awards for services to be provided by such key employees and directors in the future. Refer
to Note 6 for more information.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Equipment and Software Acquired Under Capital Lease Obligations</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company acquired equipment and software under capital lease obligations in the amount of
$14.9 million during the first three months of 2010 related to storage and other peripheral
hardware.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
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<!-- Begin Block Tagged Note 10 - us-gaap:LegalCostsPolicyTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 10 — Legal Proceedings</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>General</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     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, are believed to be without merit
or 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.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Infonox Matter</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On April 29, 2011, TSYS entered into an agreement with Safwan Shah, both individually and in
his capacity as a representative of certain remaining shareholders (the “Agreement”) to resolve all
claims against Total System Services, Inc., TSYS Acquiring Solutions, L.L.C. and Infonox, a TSYS
company, alleged in the previously disclosed litigation initiated by Mr. Shah in the Superior Court
of California, Santa Clara County (Case No. 1-10-CV-183173). Such claims arose out of TSYS’
purchase of Infonox on the Web (“Infonox”) in November 2008. The Agreement provides for the
payment by TSYS of $6 million of contingent merger consideration to Mr. Shah and the other remaining shareholders
pursuant to the Agreement and Plan of Merger entered into in connection with the transaction and
also provides for the dismissal of the litigation with prejudice and the mutual release of all
parties to the litigation. The payment of the contingent merger consideration by TSYS will be
recorded as goodwill and will have no impact on TSYS’ results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Electronic Payment Systems Matter</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In February 2007, TSYS Acquiring Solutions, L.L.C., a wholly owned subsidiary of TSYS (“TSYS
Acquiring”), filed a demand for arbitration for payment of past due processing fees pursuant to a
contract with Electronic Payment Systems LLC (“EPS”), an acquiring independent sales organization.
EPS counterclaimed and alleged certain monetary damages. In April 2008, EPS amended its
counterclaims, adding a claim for a declaration that the arbitrator award EPS ownership, control
and access to the 1-800 number that connects EPS’ merchants to TSYS Acquiring as EPS’ processor. On
January 20, 2009, the arbitrator denied all TSYS Acquiring’s claims, awarded EPS approximately $3.3
million in damages and fees and awarded EPS immediate ownership, control and access over the 1-800
number.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On January 26, 2009, TSYS Acquiring filed an action (the “First Action”) in the United States
District Court for the District of Arizona (Civil Action No. CV09-00155-PHX-JAT) seeking to vacate
the arbitration award. However, on October 22, 2009, the court granted summary judgment in favor of
EPS. On May 4, 2010, after the court denied post-judgment motions filed by TSYS Acquiring, the
court confirmed the monetary judgment and TSYS Acquiring paid the monetary judgment to EPS. TSYS
Acquiring had been using seven 1-800 numbers to connect EPS’ merchants and the court interpreted
the arbitrator’s award to include all seven numbers.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On May 14, 2010, TSYS Acquiring filed a second action (the “Second Action”) in the United
States District Court for the District of Arizona (Civil Action No. CV10-01060-PHX-DGC) seeking a
declaratory judgment that TSYS did not need to give EPS ownership and control of the seven 1-800
numbers. EPS filed a motion for summary judgment on the request for declaratory relief. EPS also
filed a counterclaim arguing that TSYS Acquiring should be required to pay EPS for its continued
use of the 1-800 number and seeking punitive damages based on various consumer protection statutes.
On November 9, 2010, the court granted EPS’ motion for summary judgment. The EPS counterclaims that
were not previously dismissed in the Second Action remain pending.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On December 3, 2010, EPS filed a motion to compel in the First Action seeking to require TSYS
Acquiring to provide EPS with immediate ownership, control and access over the seven 1-800 numbers
used by EPS merchants.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On January 24, 2011, TSYS Acquiring filed a petition with the Federal Communications
Commission (“FCC”) seeking a ruling that the enforcement of the arbitration award regarding the
1-800 numbers would violate the FCC’s rules regarding the allocation and transfer of 1-800 numbers.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On February 15, 2011, the court in the First Action issued an order (the “Order”) requiring
TSYS Acquiring to comply with the arbitration award by moving all non-EPS merchants off of 1-800
numbers used by EPS merchants, and to then transfer to EPS the seven toll free numbers at issue.
The Order requires compliance within 90 days. In addition, the court rejected TSYS Acquiring’s
arguments that the award cannot be enforced because it violates FCC regulations.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On February 24, 2011, the FCC released a Declaratory Ruling granting TSYS Acquiring’s petition
by affirming that the FCC has exclusive jurisdiction over the transfer of toll free numbers, and
noting that several aspects of the arbitrator’s ruling and the affirmation of that ruling by the
United States District Court for the District of Arizona conflicted with the FCC’s rules and
related tariffs governing the transfer of toll free numbers. Because of this, the Declaratory
Ruling proceeded to direct those third parties charged with the administration of the seven toll
free numbers for TSYS Acquiring, as well as the Toll Free Number Administrator charged with
administering the database of toll free numbers, to reject any requests seeking a transfer of those
numbers from TSYS Acquiring to another party, absent a specific directive from the FCC.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Following the FCC’s Declaratory Ruling that the toll free numbers may not be transferred by an
order of the court or the arbitrator, TSYS Acquiring filed a motion for reconsideration with the
United States District Court of the District of Arizona with respect to the Order. On April 8,
2011, the United States District Court for the District of Arizona denied TSYS Acquiring’s motion
but granted a stay of enforcement of the Order pending EPS’ appeal of the FCC’s Declaratory Ruling.
Therefore, TSYS Acquiring is not required to comply with the Order within the 90-day time frame
initially imposed by the court and does not intend to comply with the Order unless and until such
time as is required by the court.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In light of the FCC’s Declaratory Ruling that the toll free numbers may not be transferred by
an order of the court or the arbitrator, TSYS Acquiring intends to continue to vigorously defend
itself against any future enforcement of the Order in the United States District Court for the
District of Arizona, and if necessary, the Ninth Circuit Court of Appeals.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     If the Order is not ultimately vacated or modified in response to the FCC’s Declaratory
Ruling, or if EPS is successful in it’s appeal of the FCC’s Declaratory Ruling, it would require
TSYS Acquiring to move over 750,000 merchants that use one of the seven numbers that EPS seeks to
possess to other toll free numbers. TSYS Acquiring cannot estimate the cost of such compliance, but
TSYS Acquiring believes the cost of such compliance would be substantial. However, we are unable to
estimate the potential loss or range of losses at this time. Based upon current knowledge, TSYS’
management does not believe that the eventual outcome of this case will have a material adverse
effect on TSYS’ financial position, results of operations or cash flows. However, it is possible
that the ultimate outcome of this case may be material to TSYS’ results of operations for any
particular period.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - tss:GuaranteesAndIndemnificationsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 11 — Guarantees and Indemnifications</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has entered into processing and licensing agreements with its clients that include
intellectual property indemnification 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. In addition, the Company has indemnification obligations to Synovus
Financial Corp. pursuant to the disaffiliation and related agreements entered into by the parties
in connection with the corporate spin-off of TSYS from Synovus Financial Corp.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has not recorded a liability for guarantees or indemnities in the accompanying
condensed consolidated balance sheets, since neither a range nor a maximum amount of potential
future payments under such guarantees and indemnities is determinable.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 12 - us-gaap:BusinessCombinationDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 12 — Business Combinations</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>TSYS Merchant Solutions</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 1, 2010, TSYS announced the signing of an Investment Agreement with First National
Bank of Omaha (FNBO) to form a new joint venture company, First National Merchant Solutions(FNMS).
Refer to Note 24 of the Company’s audited financial statements for the year ended December 31,
2010, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year
ended December 31, 2010, as filed with the SEC, for more information on the acquisition of TMS.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On January 4, 2011, TSYS announced it had acquired the remaining 49-percent interest in FNMS,
effective January 1, 2011, from FNBO. The entity was rebranded as TSYS Merchant Solutions (TMS).
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The amounts of TMS’ revenue and earnings included in TSYS’ consolidated income statement for
the three months ended March 31, 2011, and the pro forma revenue and 100-percent of the earnings of
the combined entity had the acquisition date been January 1, 2010 are:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Net Income</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Basic EPS</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Diluted EPS</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Attributable to</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Attributable to</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Attributable to</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">TSYS Common</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">TSYS Common</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">TSYS Common</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Revenue</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Shareholders</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Shareholders</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Shareholders</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Actual from 1/1/2011-3/31/2011
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">429,430</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">48,790</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.25</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.25</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Actual from 1/1/2010-3/31/2010
</div></td>
<td> </td>
<td> </td>
<td align="right">413,464</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51,327</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.26</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.26</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Supplemental pro forma for 1/1/2010-3/31/2010
</div></td>
<td> </td>
<td> </td>
<td align="right">442,504</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,008</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.29</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.28</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 13 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 13 — Earnings Per Share</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2008, the FASB issued authoritative guidance under ASC 260, <i>“Earnings Per Share.” </i>The
guidance under ASC 260 holds that unvested share-based payment awards that contain nonforfeitable
rights to dividends or dividend equivalents are “participating securities” as defined in ASC 260<i>,</i>
and therefore should be included in computing earnings per share (EPS) using the two-class method.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     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.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table illustrates basic and diluted EPS under the guidance of ASC 260 for the
three months ended March 31, 2011 and 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three months ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">Three months ended</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>March 31, 2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">March 31, 2010</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td><i>(in thousands, except</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Common</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Participating</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Common</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Participating</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i> per share data)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Stock</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Securities</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Stock</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Securities</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic EPS:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>48,790</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51,327</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Less income allocated to nonvested awards
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(191</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right"><b>191</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(264</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">264</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Net income allocated to common stock for EPS calculation (a)
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>48,599</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>191</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51,063</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">264</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Average common shares outstanding (b)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>192,851</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>765</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">196,160</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,016</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Basic EPS (a)/(b)
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.25</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.25</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.26</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.26</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted EPS:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>48,790</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51,327</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Less income allocated to nonvested awards
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(191</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right"><b>191</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(263</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">263</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Net income allocated to common stock for EPS calculation (c)
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>48,599</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>191</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51,064</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">263</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Average common shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>192,851</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>765</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">196,160</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,016</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Increase due to assumed issuance of shares related to common
equivalent shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>305</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">86</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Average common and common equivalent shares and participating
securities (d)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>193,156</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>765</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">196,246</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,016</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Diluted EPS (c)/(d)
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>0.25</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.25</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.26</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.26</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The diluted EPS calculation excludes stock options and nonvested awards that are
convertible into 8.7 million common shares for the three months ended March 31, 2011 and excludes
7.1 million common shares for the three months ended March 31, 2010 because their inclusion would
have been anti-dilutive.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 14 - us-gaap:MinorityInterestDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 14 — Redeemable Noncontrolling Interests</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In connection with the purchase of the remaining 49-percent interest in FNMS, the Company sold
the rights to the FNMS tradename valued at $4.5 million, and recorded a gain on the sale of the
tradename of $1.5 million. The Company bought the remaining 49-percent interest for $174.1
million, and paid net cash of $169.6 million ($174.1 million less $4.5 million). With the
purchase, the Company eliminated the redeemable noncontrolling interest of $146.0 million and
recorded a reduction of approximately $28.1 million to additional paid-in capital.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 15 - us-gaap:DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 15 — Discontinued Operations</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company sold certain assets and liabilities of TPOS on September 30, 2010. The sale of
certain assets and liabilities of TPOS was the result of management’s decision during the third
quarter of 2010 to divest non-strategic businesses and focus resources on core products and
services. The Company had a pre-tax goodwill impairment of $2.2 million (approximately $1.5
million after-tax) related to TPOS, which was included in discontinued operations as part of the
sale. TPOS was part of the Merchant Services segment and was not considered a significant component
of the segment. This transaction resulted in the assumed lease of its Sacramento, California,
facility and the closure of its Columbus, Georgia-based distribution center.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     TPOS was not a significant component of the Merchant Services segment, nor TSYS’ consolidated
results.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In accordance with the provisions of ASC 205, “Presentation of Financial Statements,” the
Company determined the TPOS business became a discontinued operation in the third quarter of 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table presents the summarized results of discontinued operations for the three
months ended March 31, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three months ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>March 31, 2010</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(in thousands)</i></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues before reimbursable items
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1,891</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenues
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,891</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating (loss) income
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(641</b></td>
<td nowrap="nowrap"><b>)</b></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(213</b></td>
<td nowrap="nowrap"><b>)</b></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">(Loss) income from discontinued operations, net of tax
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(428</b></td>
<td nowrap="nowrap"><b>)</b></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Unaudited Condensed Consolidated Statements of Cash Flows include TPOS through the date of
disposition and are not considered material.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 16 - us-gaap:ScheduleOfSubsequentEventsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 16 — Subsequent Events</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On April 29, 2011, TSYS entered into an agreement with Safwan Shah, both individually and in
his capacity as a representative of certain remaining shareholders (the “Agreement”) to resolve all
claims against Total System Services, Inc., TSYS Acquiring Solutions, L.L.C. and Infonox, a TSYS
company, alleged in the previously disclosed litigation initiated by Mr. Shah in the Superior Court
of California, Santa Clara County (Case No. 1-10-CV-183173). Such claims arose out of TSYS’
purchase of Infonox on the Web (“Infonox”) in November 2008. The Agreement provides for the
payment by TSYS of $6 million of contingent merger consideration to Mr. Shah and the other remaining shareholders
pursuant to the Agreement and Plan of Merger entered into in connection with the transaction and
also provides for the dismissal of the litigation with prejudice and the mutual release of all
parties to the litigation. The payment of the contingent merger consideration by TSYS will be
recorded as goodwill and will have no impact on TSYS’ results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On May 2, 2011, TSYS acquired TermNet Merchant Services, an Atlanta-based merchant acquirer.
The company will be re-branded as TSYS and fully integrated into TSYS Merchant Solutions, another
recent TSYS acquisition based in Omaha, Nebraska.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     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. The expiration date of the plan was also extended to April 30,
2013.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Management performed an evaluation of the Company’s activity the date these unaudited
financial statements were issued, and has concluded that, other than as set forth above, there are
no significant subsequent events requiring disclosure.
</div>
</div>
false
--12-31
Q1
2011
2011-03-31
10-Q
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Yes
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