Total System Services (TSS) 8-K Results of Operations and Financial Condition

Exhibit 99.2

TSYS Announces Third Quarter 2008 Earnings
Page 4 of 7

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

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
							Percentage									Percentage
	2008			2007			Change			2008			2007			Change
Revenues
Electronic payment processing services*	$	250,066			240,608			3.9	%	$	733,765			715,417			2.6	%
Merchant acquiring services		64,540			65,163			(1.0	)		191,806			190,120			0.9
Other services*		68,193			53,251			28.1			189,645			161,190			17.7
Revenues before reimbursables		382,799			359,022			6.6			1,115,216			1,066,727			4.5
Reimbursable items		117,593			98,543			19.3			330,012			280,597			17.6
Total revenues		500,392			457,565			9.4			1,445,228			1,347,324			7.3
Expenses
Salaries & other personnel expense*		153,263			144,990			5.7			449,246			430,966			4.2
Net occupancy & equipment expense*		75,399			68,715			9.7			223,075			205,342			8.6
Spin related expenses*		1,719			1,692			1.6			9,869			1,692		nm
Other operating expenses*		56,510			52,406			7.8			152,696			155,913			(2.1	)
Expenses before reimbursable items		286,891			267,803			7.1			834,886			793,913			5.2
Reimbursable items		117,593			98,543			19.3			330,012			280,597			17.6
Total operating expenses		404,484			366,346			10.4			1,164,898			1,074,510			8.4
Operating income		95,908			91,219			5.1			280,330			272,814			2.8
Nonoperating income:
Interest income		2,572			6,983			(63.2	)		6,833			18,630			(63.3	)
Interest expense		(2,737	)		(916	)	nm				(8,964	)		(1,492	)	nm
Gain on foreign currency translation, net		1,092			905			20.7			3,233			744		nm
Other		(992	)		21		nm				(278	)		79		nm
Nonoperating income		(65	)		6,993			(100.9	)		824			17,961			(95.4	)
Income before income taxes, minority interest and equity in income of equity investments		95,843			98,212			(2.4	)		281,154			290,775			(3.3	)
Income taxes		34,229			30,947			10.6			101,386			101,442			(0.1	)
Income before minority interest and equity in income of equity investments		61,614			67,265			(8.4	)		179,768			189,333			(5.1	)
Minority interest		(374	)		(484	)		22.7			(1,322	)		(1,435	)		7.9
Equity in income of equity investments		2,834			2,021			40.2			5,326			3,865			37.8
Net income	$	64,074			68,802			(6.9)	%	$	183,772			191,763			(4.2)	%
Basic earnings per share	$	0.33			0.35			(6.5)	%	$	0.94			0.98			(4.0)	%
Diluted earnings per share	$	0.33			0.35			(6.6)	%	$	0.93			0.97			(4.1)	%
Dividend declared per share	$	0.07			0.07					$	0.21			0.21
Average common shares outstanding		196,000			196,740						196,342			196,641
Average common and common equivalent shares outstanding		196,450			197,089						196,971			197,070

*	Certain amounts have been previously reclassed to conform with the presentation adopted in 2008.
nm =	not meaningful

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TSYS Announces Third Quarter 2008 Earnings
Page 5 of 7

TSYS
Segment Breakdown
(unaudited)
(in thousands)

	Three Months Ended September 30, 2008															Three Months Ended September 30, 2007
	North American			Global			Merchant			Spin-Related						North American			Global			Merchant			Spin-Related
	Services			Services			Services			Costs			Consolidated			Services			Services			Services			Costs			Consolidated
Revenues before reimbursables	$	245,172			85,118			58,357			—			388,647			242,574			64,148			59,471			—			366,193
Intersegment revenues		(5,205	)		(351	)		(292	)		—			(5,848	)		(6,960	)		(106	)		(105	)		—			(7,171	)
Revenues before reimbursables from external customers	$	239,967			84,767			58,065			—			382,799			235,614			64,042			59,366			—			359,022
Total revenues	$	345,881			88,090			74,613			—			508,584			323,973			66,779			76,185			—			466,937
Intersegment revenues		(7,549	)		(351	)		(292	)		—			(8,192	)		(9,162	)		(106	)		(104	)		—			(9,372	)
Revenues from external customers	$	338,332			87,739			74,321			—			500,392			314,811			66,673			76,081			—			457,565
Depreciation and amortization	$	23,967			9,658			6,783			—			40,408			24,581			6,455			6,570			—			37,606
Intersegment expenses	$	2,494			(3,012	)		(7,638	)		—			(8,156	)		3,515			(4,996	)		(7,892	)		—			(9,373	)
Segment operating income	$	63,786			16,751			17,090			(1,719	)		95,908			62,415			11,542			18,954			(1,692	)		91,219
Income before income taxes, minority interest and equity income of equity investments		62,948			17,370			17,244			(1,719	)		95,843			68,514			12,130			19,260			(1,692	)		98,212
Income tax expense	$	22,742			6,014			6,089			(616	)		34,229			19,999			4,033			6,915			—			30,947
Equity in income of equity investments	$	670			2,164			—			—			2,834			1,027			994			—			—			2,021
Net Income	$	40,876			13,146			11,155			(1,103	)		64,074			49,541			8,607			12,346			(1,692	)		68,802
Identifiable assets		1,378,606			360,002			169,389			—			1,907,997
Intersegment eliminations		(320,524	)		(960	)		(16	)		—			(321,500	)
Total assets		1,058,082			359,042			169,373			—			1,586,497

	Nine Months Ended September 30, 2008															Nine Months Ended September 30, 2007
	North American			Global			Merchant			Spin-Related						North American			Global			Merchant			Spin-Related
	Services			Services			Services			Costs			Consolidated			Services			Services			Services			Costs			Consolidated
Revenues before reimbursables	$	730,192			230,107			171,777			—			1,132,076			736,246			175,154			174,160			—			1,085,560
Intersegment revenues		(15,099	)		(1,040	)		(721	)		—			(16,860	)		(17,490	)		(701	)		(642	)		—			(18,833	)
Revenues before reimbursables from external customers	$	715,093			229,067			171,056			—			1,115,216			718,756			174,453			173,518			—			1,066,727
Total revenues	$	1,010,958			237,816			220,117			—			1,468,891			970,666			182,913			218,821			—			1,372,400
Intersegment revenues		(21,902	)		(1,040	)		(721	)		—			(23,663	)		(23,733	)		(701	)		(642	)		—			(25,076	)
Revenues from external customers	$	989,056			236,776			219,396			—			1,445,228			946,933			182,212			218,179			—			1,347,324
Depreciation and amortization	$	73,994			26,150			20,019			—			120,163			76,272			17,762			20,179			—			114,213
Intersegment expenses	$	7,941			(9,201	)		(22,332	)		—			(23,592	)		10,052			(11,961	)		(23,162	)		—			(25,071	)
Segment operating income	$	204,012			35,937			50,250			(9,869	)		280,330			194,474			32,702			47,330			(1,692	)		272,814
Income before income taxes, minority interest and equity income of equity investments		203,126			36,989			50,908			(9,869	)		281,154			211,234			32,562			48,671			(1,692	)		290,775
Income tax expense	$	73,013			13,226			18,134			(2,987	)		101,386			73,529			10,441			17,472			—			101,442
Equity in income of equity investments	$	1,586			3,740			—			—			5,326			2,768			1,097			—			—			3,865
Net Income	$	131,700			26,180			32,774			(6,882	)		183,772			140,474			21,782			31,199			(1,692	)		191,763

Note:	Revenues from North American Services include electronic payment processing services and other services provided from the United States to clients domiciled in the United States or other countries. Revenues from Global Services include electronic payment processing services and other services provided from outside the United States to clients based mainly outside the United States. Revenues from Merchant Services include TSYS Acquiring’s merchant acquiring and related services.
	Effective February 1, 2008, TSYS merged the operations of Golden Retriever LLC with TSYS Acquiring Solutions, LLC. As a result of the merger, the results of Golden Retriever for prior periods have been reclassified to reflect the move from North American Services to the Merchant Services segment.
	Equity in income of equity investments for TSYS de Mexico has been reclassified from Global Services to North American Services.

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TSYS Announces Third Quarter 2008 Earnings
Page 6 of 7

TSYS
Balance Sheet
(in thousands)

	Sept 30, 2008			Dec 31, 2007
	(unaudited)			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	309,004			210,518
Restricted cash		19,453			29,688
Accounts receivable, net		260,843			256,970
Deferred income tax assets		36,457			17,152
Prepaid expenses and other current assets		68,875			72,250
Total current assets		694,632			586,578
Property and equipment, net		283,400			283,138
Computer software, net		193,083			205,830
Contract acquisition costs, net		150,845			151,599
Goodwill, net		141,688			142,545
Equity investments, net		85,187			80,905
Other intangible assets, net		11,599			13,462
Other assets		26,063			14,963
Total assets	$	1,586,497			1,479,020
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of notes payable	$	70,184			8,648
Accrued salaries and employee benefits		51,244			85,142
Accounts payable		36,504			41,817
Current portion of obligations under capital leases		4,030			3,080
Other current liabilities		144,025			135,108
Total current liabilities		305,987			273,795
Notes payable, excluding current portion		182,148			252,659
Deferred income tax liabilities		72,782			67,428
Obligations under capital leases, excluding current portion		7,062			3,934
Other long-term liabilities		27,707			28,151
Total liabilities		595,686			625,967
Minority interests in consolidated subsidiaries		9,554			8,580
Shareholders’ Equity:
Common stock		20,036			19,966
Additional paid-in capital		125,801			104,762
Accumulated other comprehensive income, net		25,235			28,322
Treasury stock		(57,554	)		(34,138	)
Retained earnings		867,739			725,561
Total shareholders’ equity		981,257			844,473
Total liabilities and shareholders’ equity	$	1,586,497			1,479,020

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TSYS Announces Third Quarter 2008 Earnings
Page 7 of 7

TSYS
Cash Flow
(unaudited)
(in thousands)

	Nine Months Ended September 30,
	2008			2007
Cash flows from operating activities:
Net income	$	183,772			191,763
Adjustments to reconcile net income to net cash provided by operating activities:
Minority interests in consolidated subsidiaries’ net income		1,322			1,435
Equity in income of equity investments		(5,326	)		(3,865	)
Dividends received from equity investments		6,421			2,994
Gain on currency translation adjustments, net		(3,233	)		(744	)
Depreciation and amortization		120,163			114,213
Amortization of debt issuance costs		115			—
Share-based compensation		21,260			9,881
Excess tax benefit from share-based payment arrangements		(82	)		(4,022	)
Asset impairments		—			1,158
Provisions for bad debt expense and billing adjustments		2,779			1,612
Charges for transaction processing provisions		1,415			531
Deferred income tax benefit		(12,471	)		(6,828	)
Loss on disposal of equipment, net		180			497
(Increase) decrease in:
Accounts receivable		(10,701	)		(5,627	)
Prepaid expenses, other current assets and other long-term assets		(10,539	)		(1,041	)
Increase (decrease) in:
Accounts payable		(1,150	)		6,148
Accrued salaries and employee benefits		(33,770	)		(9,341	)
Other current liabilities and other long-term liabilities		23,428			(51,286	)
Net cash provided by operating activities		283,583			247,478
Cash flows from investing activities:
Purchases of property and equipment, net		(35,502	)		(36,420	)
Additions to licensed computer software from vendors		(22,797	)		(8,194	)
Additions to internally developed computer software		(14,976	)		(11,749	)
Cash used in acquisitions and equity investments		(1,459	)		(472	)
Additions to contract acquisition costs		(34,612	)		(20,878	)
Net cash used in investing activities		(109,346	)		(77,713	)
Cash flows from financing activities:
Proceeds from borrowings of long-term debt		2,506			73,968
Principal payments on long-term debt borrowings and capital lease obligations		(11,501	)		(3,893	)
Proceeds from exercise of stock options		266			5,258
Excess tax benefit from share-based payment arrangements		82			4,022
Repurchase of common stock		(23,594	)		—
Subsidiary dividends paid to noncontrolling shareholders		(241	)		—
Subsidiary repurchase of minority interest		(343	)		—
Dividends paid on common stock		(41,358	)		(41,425	)
Net cash used in financing activities		(74,183	)		37,930
Effect of exchange rate changes on cash and cash equivalents		(1,568	)		(3,984	)
Net increase in cash and cash equivalents		98,486			203,711
Cash and cash equivalents at beginning of year		210,518			389,123
Cash and cash equivalents at end of period	$	309,004			592,834

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