Segment Reporting, including Geographic Area Data and Major Customers (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting, including Geographic Area Data and Major Customers

Schedule of operating income and revenue by segment

Operating Segments	Years Ended December 31,
(in thousands)		2017	2016	2015
Adjusted operating income by segment:
Issuer Solutions (a)	$	574,580	525,025	489,151
Merchant Solutions (b)		391,466	307,595	150,225
Netspend (c)		182,082	160,371	137,837
Corporate Administration and Other		(148,564)	(135,996)	(109,036)
Adjusted segment operating income1 (d)		999,564	856,995	668,177
Less:
Share-based compensation		42,409	43,728	41,549
TransFirst and Cayan M&A and integration expenses2		13,367	28,176	-
Litigation, claims, judgments or settlements		1,947	21,719	-
Acquisition intangible amortization		207,797	189,990	92,521
Operating income		734,044	573,382	534,107
Nonoperating expenses, net		(116,482)	(112,350)	(40,543)
Income before income taxes and equity in income of equity investments	$	617,562	461,032	493,564
Net revenue by segment:
Issuer Solutions (e)	$	1,594,959	1,515,462	1,473,914
Merchant Solutions (f)		1,103,682	898,533	474,040
Netspend (g)		746,870	663,579	580,377
Segment net revenue		3,445,511	3,077,574	2,528,331
Less: intersegment revenues		45,179	35,698	28,982
Net revenue3 (h)		3,400,332	3,041,876	2,499,349
Add: reimbursable items, interchange and payment network fees		1,527,633	1,128,201	280,192
Total revenues	$	4,927,965	4,170,077	2,779,541
Adjusted segment operating margin on net revenue:
Issuer Solutions (a)/(e)		36.0%	34.6%	33.2%
Merchant Solutions (b)/(f)		35.5%	34.2%	31.7%
Netspend (c)/(g)		24.4%	24.2%	23.7%
Adjusted segment operating margin on net revenue (d)/(h)		29.4%	28.2%	26.7%

¹ Adjusted segment operating income excludes acquisition intangible amortization, TransFirst and Cayan M&A and integration expenses, share-based compensation and expenses associated with Corporate Administration and Other.

² Excludes share-based compensation

³ Net revenue is total revenues less reimbursable items (such as postage), as well as, merchant acquiring interchange and payment network fees charged by the card associations or payment networks that are recorded by TSYS as expense.  Adjusted segment operating income excludes acquisition intangible amortization, TransFirst and Cayan M&A expenses, share-based compensation and expenses associated with Corporate Administration and Other.

Schedule of depreciation expense by segment

Operating Segments	Years Ended December 31,
(in thousands)		2017	2016	2015
Depreciation and amortization:
Issuer Solutions	$	147,914	141,309	134,436
Merchant Solutions		29,477	25,553	18,268
Netspend		15,838	13,133	10,686
Segment depreciation and amortization		193,229	179,995	163,390
Acquisition intangible amortization		207,797	189,990	92,521
Corporate Administration and Other		4,880	3,561	2,353
Total depreciation and amortization	$	405,906	373,546	258,264

Schedule of total assets by segment

	As of December 31,
(in thousands)	2017		2016
Issuer Solutions	$	5,735,195	5,667,280
Merchant Solutions		3,136,395	3,295,509
Netspend		1,418,644	1,474,595
Intersegment assets		(3,958,545)	(4,071,207)
Total assets	$	6,331,689	6,366,177

Schedule of property and equipment, net by geographic area

	As of
(in thousands)	December 31, 2017		December 31, 2016
United States	$	273,690	236,913
Europe		43,586	38,866
Other		7,942	6,566
Total	$	325,218	282,345

Schedule of reconciliation of geographic revenues to external revenues by operating segment

	2017
(in thousands)	Issuer         Solutions		Merchant Solutions	Netspend	Total		Percentage of Revenues
United States	$	1,051,292	2,428,327	745,235	$	4,224,854	85.7	%
Europe1		320,400	284	-		320,684	6.5
Canada1		313,674	1,496	-		315,170	6.4
Other1		66,102	1,155	-		67,257	1.4
Total	$	1,751,468	2,431,262	745,235	$	4,927,965	100.0	%

	2016
(in thousands)	Issuer                    Solutions		Merchant Solutions	Netspend	Total		Percentage of Revenues
United States	$	1,032,381	1,826,775	660,845	$	3,520,001	84.4	%
Europe1		306,894	227	-		307,121	7.4
Canada1		284,028	705	-		284,733	6.8
Other1		57,460	762	-		58,222	1.4
Total	$	1,680,763	1,828,469	660,845	$	4,170,077	100.0	%

	2015
(in thousands)	Issuer                    Solutions		Merchant Solutions	Netspend	Total		Percentage of Revenues
United States	$	981,588	548,079	580,377	$	2,110,044	75.9	%
Europe1		304,628	22	-		304,650	11.0
Canada1		288,728	355	-		289,083	10.4
Other1		75,085	679	-		75,764	2.7
Total	$	1,650,029	549,135	580,377	$	2,779,541	100.0	%

1Certain of these revenues are impacted by movements in foreign currency exchange rates.