Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 22, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'TSS | ' |
Entity Registrant Name | 'TOTAL SYSTEM SERVICES INC | ' |
Entity Central Index Key | '0000721683 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 189,780,958 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $396,860 | $247,612 |
Accounts receivable, net of allowance for doubtful accounts and billing adjustments of $4.3 million and $3.9 million at 2013 and 2012, respectively | 261,595 | 247,083 |
Deferred income tax assets | 14,604 | 9,825 |
Prepaid expenses and other current assets | 87,522 | 70,206 |
Total current assets | 760,581 | 574,726 |
Goodwill | 1,545,784 | 518,344 |
Other intangible assets, net of accumulated amortization of $85.8 million and $55.2 million at 2013 and 2012, respectively | 500,870 | 130,054 |
Computer software, net of accumulated amortization of $533.8 million and $627.3 million at 2013 and 2012, respectively | 320,928 | 226,917 |
Property and equipment, net of accumulated depreciation and amortization of $388.2 million and $364.2 million at 2013 and 2012, respectively | 259,865 | 260,389 |
Contract acquisition costs, net of accumulated amortization of $239.0 million and $216.0 million at 2013 and 2012, respectively | 173,840 | 161,267 |
Equity investments, net | 89,964 | 87,764 |
Deferred income tax assets, net | 5,843 | 5,334 |
Other assets | 97,211 | 59,043 |
Total assets | 3,754,886 | 2,023,838 |
Current liabilities: | ' | ' |
Accounts payable | 44,119 | 63,370 |
Accrued salaries and employee benefits | 29,502 | 26,243 |
Current portion of long-term borrowings | 27,688 | 27,361 |
Current portion of obligations under capital leases | 23,153 | 13,263 |
Other current liabilities | 173,190 | 100,282 |
Total current liabilities | 297,652 | 230,519 |
Long-term borrowings, excluding current portion | 1,494,397 | 174,859 |
Deferred income tax liabilities | 220,846 | 48,074 |
Obligations under capital leases, excluding current portion | 10,322 | 17,155 |
Other long-term liabilities | 67,417 | 68,791 |
Total liabilities | 2,090,634 | 539,398 |
Redeemable noncontrolling interest in consolidated subsidiary | 39,303 | 39,505 |
Commitments and contingencies (Note 9) | ' | ' |
Shareholders' equity: | ' | ' |
Common stock - $0.10 par value. Authorized 600,000 shares; 202,801 and 202,471 issued at 2013 and 2012, respectively; 190,266 and 187,031 outstanding at 2013 and 2012, respectively | 20,280 | 20,247 |
Additional paid-in capital | 150,492 | 141,793 |
Accumulated other comprehensive income (loss), net | -220 | 1,408 |
Treasury stock, at cost (12,535 and 15,440 shares at 2013 and 2012, respectively) | -237,379 | -287,301 |
Retained earnings | 1,671,595 | 1,549,063 |
Total shareholders' equity | 1,604,768 | 1,425,210 |
Noncontrolling interests in consolidated subsidiaries | 20,181 | 19,725 |
Total equity | 1,624,949 | 1,444,935 |
Total liabilities and equity | $3,754,886 | $2,023,838 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data in Thousands, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts and billing adjustments | $4.30 | $3.90 |
Other intangible assets, accumulated amortization | 85.8 | 55.2 |
Computer software, accumulated amortization | 533.8 | 627.3 |
Property and equipment, accumulated depreciation and amortization | 388.2 | 364.2 |
Contract acquisition costs, accumulated amortization | $239 | $216 |
Common stock, par value | $0.10 | $0.10 |
Common stock, Authorized | 600,000 | 600,000 |
Common stock, issued | 202,801 | 202,471 |
Common stock, outstanding | 190,266 | 187,031 |
Treasury stock, shares | 12,535 | 15,440 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Total revenues | $588,074 | $468,059 | $1,531,513 | $1,391,872 |
Cost of services | 394,641 | 315,685 | 1,032,856 | 946,612 |
Selling, general and administrative expenses | 80,523 | 61,099 | 210,803 | 176,557 |
Merger and acquisition expenses | 7,282 | 382 | 12,009 | 882 |
Total operating expenses | 482,446 | 377,166 | 1,255,668 | 1,124,051 |
Operating income | 105,628 | 90,893 | 275,845 | 267,821 |
Nonoperating expenses, net | -545 | -579 | -147 | -2,802 |
Merger and acquisition expenses - bridge loan facility and bonds | -9,789 | ' | -19,466 | ' |
Income before income taxes and equity in income of equity investments | 95,294 | 90,314 | 256,232 | 265,019 |
Income taxes | 30,592 | 30,228 | 78,384 | 84,336 |
Income before equity in income of equity investments | 64,702 | 60,086 | 177,848 | 180,683 |
Equity in income of equity investments, net of tax | 2,792 | 1,957 | 9,357 | 6,983 |
Net income | 67,494 | 62,043 | 187,205 | 187,666 |
Net income attributable to noncontrolling interests | -3,144 | -1,731 | -8,110 | -4,248 |
Net income attributable to Total System Services, Inc. (TSYS) common shareholders | $64,350 | $60,312 | $179,095 | $183,418 |
Basic earnings per share (EPS) attributable to TSYS common shareholders (Note 11) | $0.34 | $0.32 | $0.95 | $0.97 |
Diluted EPS attributable to TSYS common shareholders (Note 11) | $0.34 | $0.32 | $0.94 | $0.97 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $67,494 | $62,043 | $187,205 | $187,666 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | 7,222 | 9,999 | -6,489 | 2,935 |
Postretirement healthcare plan adjustments | 1,113 | -1,537 | 1,423 | -1,250 |
Unrealized gain on available-for-sale securities | 1,479 | ' | 1,479 | ' |
Other comprehensive income (loss) | 9,814 | 8,462 | -3,587 | 1,685 |
Comprehensive income | 77,308 | 70,505 | 183,618 | 189,351 |
Comprehensive income attributable to noncontrolling interests | 3,228 | 1,709 | 6,149 | 3,844 |
Comprehensive income attributable to TSYS common shareholders | $74,080 | $68,796 | $177,469 | $185,507 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $187,205 | $187,666 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 142,490 | 127,329 |
Deferred income tax expense (benefit) | 25,784 | -2,355 |
Share-based compensation | 19,587 | 12,348 |
Dividends received from equity investments | 8,595 | 7,523 |
Charges for transaction processing provisions | 8,545 | 1,348 |
Amortization of debt issuance costs | 6,775 | 180 |
Provisions for fraud and other losses | 6,398 | ' |
Provisions for bad debt expenses and billing adjustments | 2,193 | 813 |
Loss on disposal of equipment, net | 78 | 77 |
Amortization of bond discount | 131 | ' |
Net loss on foreign currency | 612 | 2,259 |
Changes in value of private equity investments | -1,227 | ' |
Excess tax benefit from share-based payment arrangements | -2,727 | -1,236 |
Equity in income of equity investments | -9,357 | -6,983 |
Changes in operating assets and liabilities: | ' | ' |
Accounts payable | -41,055 | 6,688 |
Prepaid expenses, other current assets and other long-term assets | -12,610 | 4,406 |
Accounts receivable | -6,721 | 1,730 |
Accrued salaries and employee benefits | -9,552 | -13,567 |
Other current liabilities and other long-term liabilities | -17,659 | 5,761 |
Net cash provided by operating activities | 307,485 | 333,987 |
Cash flows from investing activities: | ' | ' |
Cash used in acquisitions, net of cash acquired | -1,314,660 | -66,250 |
Additions to contract acquisition costs | -36,824 | -25,700 |
Additions to licensed computer software from vendors | -34,412 | -19,385 |
Purchases of property and equipment | -24,896 | -24,296 |
Additions to internally developed computer software | -22,519 | -15,202 |
Purchase of private equity investments | -1,146 | -2,370 |
Net cash used in investing activities | -1,434,457 | -153,203 |
Cash flows from financing activities: | ' | ' |
Proceeds from long-term borrowings | 1,395,661 | 158,633 |
Proceeds from exercise of stock options | 27,488 | 9,451 |
Excess tax benefit from share-based payment arrangements | 2,727 | 1,236 |
Subsidiary dividends paid to noncontrolling shareholders | -5,897 | -2,797 |
Repurchase of common stock under plans and tax withholding | -6,267 | -61,556 |
Debt issuance costs | -13,471 | -1,996 |
Dividends paid on common stock | -37,514 | -56,719 |
Principal payments on long-term borrowings and capital lease obligations | -82,644 | -188,395 |
Net cash provided by (used in) financing activities | 1,280,083 | -142,143 |
Cash and cash equivalents: | ' | ' |
Effect of exchange rate changes on cash and cash equivalents | -3,863 | 1,591 |
Net increase in cash and cash equivalents | 149,248 | 40,232 |
Cash and cash equivalents at beginning of period | 247,612 | 316,337 |
Cash and cash equivalents at end of period | 396,860 | 356,569 |
Supplemental cash flow information: | ' | ' |
Interest paid | 2,396 | 2,003 |
Income taxes paid, net | $64,228 | $76,887 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | ' |
Note 1 — Summary of Significant Accounting Policies | |
Business | |
Total System Services, Inc.’s (TSYS’ or the Company’s) revenues are derived from providing payment processing, merchant services and related services to financial and nonfinancial institutions, generally under long-term processing contracts. The Company also derives revenues by providing general-purpose reloadable (GPR) prepaid debit cards and payroll cards and alternative financial services to underbanked consumers. The Company’s services are provided through four of the Company’s operating segments: North America Services, International Services, Merchant Services and NetSpend. | |
Through the Company’s North America Services and International Services segments, TSYS processes information through its cardholder systems to financial institutions throughout the United States and internationally. The Company’s North America Services segment provides these services to clients in the United States, Canada, Mexico and the Caribbean. The Company’s International Services segment provides services to clients in Europe, India, Middle East, Africa, Asia Pacific and Brazil. The Company’s Merchant Services segment provides merchant services to merchant acquirers and merchants mainly in the United States. | |
On July 1, 2013, TSYS completed its acquisition of all the outstanding stock of NetSpend Holdings, Inc. (NetSpend). NetSpend operates as a single reportable business segment and provides GPR prepaid debit and payroll cards and alternative financial service solutions to the underbanked and other consumers in the United States. The products NetSpend manages provide underbanked consumers with access to FDIC-insured depository accounts with a menu of pricing and features specifically tailored to their needs. NetSpend has an extensive distribution and reload network comprised of financial service centers and other retail locations throughout the United States. | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements of TSYS include the accounts of TSYS and its wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
These financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and, therefore, do not include all information and footnotes required by U.S. GAAP for complete financial statements. The preparation of the consolidated financial statements requires management of the Company to make 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. | |
Certain prior period amounts have been reclassified to conform to the current period’s presentation. | |
The accompanying unaudited 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, 2012. Results of interim periods are not necessarily indicative of results to be expected for the year. | |
Significant Accounting Policies | |
As a result of the acquisition of NetSpend, the Company adopted the following critical accounting policy: | |
Cardholders’ reserve | |
The Company is exposed to losses due to cardholder fraud, payment defaults and other forms of cardholder activity, as well as losses, due to non-performance of third parties who receive cardholder funds for transmittal to the Issuing Banks (banks that issue MasterCard International or Visa USA, Inc. branded cards to customers). The Company establishes a reserve for the losses it estimates will arise from processing customer transactions, debit card overdrafts, chargebacks for unauthorized card use and merchant-related chargebacks due to non-delivery of goods or services. These reserves are established based upon historical loss and recovery rates and cardholder activity for which specific losses can be identified. The cardholders’ reserve was approximately $7.2 million as of September 30, 2013. The provision for cardholder losses is included in cost of services in the Consolidated Statements of Income. The Company regularly updates its reserve estimate as new facts become known and events occur that may impact the settlement or recovery of losses. | |
Recently Adopted Accounting Pronouncements | |
In 2013, the Company adopted Accounting Standards Update (ASU) 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” and (ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.”) The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows. | |
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Measurement | ' |
Note 2 — Fair Value Measurement | |
Refer to Note 3 of the Company’s audited financial statements for the year ended December 31, 2012, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission (SEC), for a discussion regarding fair value measurement. | |
Accounting Standards Codification (ASC) 820, “Fair Value Measurements and Disclosure”, requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant level of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows: | |
Level 1 — Quoted prices for identical assets and liabilities in active markets. | |
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |
Level 3 — Unobservable inputs for the asset or liability. | |
The Company had no transfers between Level 1, Level 2 or Level 3 assets during the nine months ended September 30, 2013. | |
The Company performed its annual impairment testing of its goodwill balance as of May 31, 2013. This test did not indicate any impairment and the fair value of the reporting units substantially exceeded their carrying value. As of September 30, 2013, the Company had recorded goodwill in the amount of $1.5 billion. |
Supplementary_Balance_Sheet_In
Supplementary Balance Sheet Information | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Supplementary Balance Sheet Information | ' | ||||||||||||||||||||
Note 3 — Supplementary Balance Sheet Information | |||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||
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. | |||||||||||||||||||||
Cash and cash equivalent balances are summarized as follows: | |||||||||||||||||||||
(in thousands) | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Cash and cash equivalents in domestic accounts | $ | 328,918 | 152,373 | ||||||||||||||||||
Cash and cash equivalents in foreign accounts | 67,942 | 95,239 | |||||||||||||||||||
Total | $ | 396,860 | 247,612 | ||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company had approximately $5.0 million and $2.5 million, respectively, 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. | |||||||||||||||||||||
Prepaid Expenses and Other Current Assets | |||||||||||||||||||||
Significant components of prepaid expenses and other current assets are summarized as follows: | |||||||||||||||||||||
(in thousands) | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Prepaid expenses | $ | 35,696 | 24,615 | ||||||||||||||||||
Supplies inventory | 11,650 | 8,881 | |||||||||||||||||||
Other | 40,176 | 36,710 | |||||||||||||||||||
Total | $ | 87,522 | 70,206 | ||||||||||||||||||
Contract Acquisition Costs, net | |||||||||||||||||||||
Significant components of contract acquisition costs, net of accumulated amortization, are summarized as follows: | |||||||||||||||||||||
(in thousands) | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Conversion costs, net of accumulated amortization of $118.7 million and $105.4 million at 2013 and 2012, respectively | $ | 102,177 | 85,402 | ||||||||||||||||||
Payments for processing rights, net of accumulated amortization of $120.3 million and $110.6 million at 2013 and 2012, respectively | 71,663 | 75,865 | |||||||||||||||||||
Total | $ | 173,840 | 161,267 | ||||||||||||||||||
Amortization expense related to conversion costs, which is recorded in cost of services, was $3.9 million and $6.0 million for the three months ended September 30, 2013 and 2012, respectively. For the nine months ended September 30, 2013 and 2012, amortization related to conversion costs was $13.4 million and $17.5 million, respectively. | |||||||||||||||||||||
Amortization related to payments for processing rights, which is recorded as a reduction of revenues, was $3.3 million and $3.2 million for the three months ended September 30, 2013 and 2012, respectively. For the nine months ended September 30, 2013 and 2012, amortization related to payments for processing rights was $9.8 million and $10.0 million, respectively. | |||||||||||||||||||||
Other Current Liabilities | |||||||||||||||||||||
Significant components of other current liabilities are summarized as follows: | |||||||||||||||||||||
(in thousands) | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Deferred revenues | $ | 32,764 | 29,101 | ||||||||||||||||||
Dissenting shareholder liability* | 25,723 | — | |||||||||||||||||||
Accrued expenses | 23,699 | 30,963 | |||||||||||||||||||
Dividends payable | 19,458 | 729 | |||||||||||||||||||
Accrued income taxes | 1,799 | 10,936 | |||||||||||||||||||
Other | 69,747 | 28,553 | |||||||||||||||||||
Total | $ | 173,190 | 100,282 | ||||||||||||||||||
* | Represents 1.6 million NetSpend shares held by dissenting shareholders | ||||||||||||||||||||
Accumulated Other Comprehensive Income (AOCI) | |||||||||||||||||||||
The income tax effects allocated to and the cumulative balance of accumulated other comprehensive income (loss) attributable to TSYS shareholders are as follows: | |||||||||||||||||||||
(in thousands) | Beginning | Pretax | Tax | Net-of-Tax | Ending | ||||||||||||||||
Balance | Amount | Effect | Amount | Balance | |||||||||||||||||
December 31, | September 30, | ||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||
Foreign currency translation adjustments and transfers from noncontrolling interests | $ | 3,360 | (4,418 | ) | 112 | (4,530 | ) | (1,170 | ) | ||||||||||||
Unrealized gain on available-for-sale securities | — | 2,344 | 865 | 1,479 | 1,479 | ||||||||||||||||
Change in AOCI related to postretirement healthcare plans | (1,952 | ) | 1,357 | (66 | ) | 1,423 | (529 | ) | |||||||||||||
Total | $ | 1,408 | (717 | ) | 911 | (1,628 | ) | (220 | ) | ||||||||||||
There were no reclassifications of AOCI to net income or to other accounts for the three or nine month periods ended September 30, 2013. |
LongTerm_Borrowings
Long-Term Borrowings | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Long-Term Borrowings | ' | |||
Note 4 — Long-Term Borrowings | ||||
Refer to Note 13 of the Company’s audited financial statements for the year ended December 31, 2012, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC, for a discussion regarding long-term borrowings. | ||||
On February 19, 2013, the Company and its wholly-owned merger subsidiary entered into an Agreement and Plan of Merger (as amended on May 29, 2013, the “Merger Agreement”) with NetSpend, pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, the merger subsidiary merged with and into NetSpend on July 1, 2013, with NetSpend continuing as the surviving corporation and as a wholly-owned subsidiary of TSYS (the “Merger”). Refer to Note 10 for more information about the acquisition. | ||||
On April 8, 2013, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as Administrative Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Syndication Agent, Regions Bank and U.S. Bank National Association, as Documentation Agents, and other lenders party thereto, with J.P. Morgan Securities LLC, The Bank of Tokyo Mitsubishi UFJ, Ltd., Regions Capital Markets, and U.S. Bank National Association as joint lead arrangers and joint bookrunners. The Credit Agreement provides for a five-year term loan to the Company in the amount of $200.0 million (the “Term Loan”) and bears interest at LIBOR plus 1.125%, which are subject to adjustment based on changes in our credit ratings, with margins ranging from 1.00 to 1.75%. As of September 30, 2013, the outstanding balance on the Credit Agreement was $197.5 million. | ||||
Concurrently with entering into the Merger Agreement, TSYS obtained commitments for a $1.2 billion 364-day bridge term loan facility from JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC and The Bank of Tokyo-Mitsubishi UFJ, Ltd. Thereafter, JPMorgan Chase Bank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. assigned portions of their commitments to other bridge facility lenders. The Company paid fees associated with the bridge term loan of approximately $5.9 million. The total commitments under the bridge term loan facility were eliminated in May 2013 after the issuance of the Notes described below. | ||||
On May 22, 2013, the Company closed its issuance (the “Transaction”) of $550.0 million aggregate principal amount of 2.375% Senior Notes due 2018 and $550.0 million aggregate principal amount of 3.750% Senior Notes due 2023 (collectively, the “Notes”) pursuant to an Underwriting Agreement with J.P. Morgan Securities LLC, as representative of certain underwriters (the “Underwriters”), whereby the Company agreed to sell and the Underwriters agreed to purchase the Notes from the Company, subject to and upon the terms and conditions set forth in the Underwriting Agreement. The interest on the Notes are payable semiannually. The Company paid fees associated with the issuance of these Notes of approximately $8.9 million and recorded discounts of approximately $4.3 million that are being amortized over the life of the Notes. The Company used the net proceeds of the Transaction to pay a portion of the $1.4 billion purchase price of the Company’s acquisition of NetSpend and related fees and expenses. The Notes were issued pursuant to an Indenture dated as of May 22, 2013 between the Company and Wells Fargo Bank, National Association, as trustee. | ||||
The Notes also contain various affirmative and negative covenants, including those that create limitations on the Company’s: | ||||
• | creation of liens; | |||
• | merging or selling assets unless certain conditions are met; and | |||
• | entering into sale/leaseback transactions. | |||
The Notes also contain a provision that requires the Company to repurchase all or any portion of a holder’s Notes, at the holder’s option, if a Change in Control Repurchase Event (as such term is defined in the Notes) occurs. | ||||
Amendment to Existing Credit Agreement | ||||
On September 10, 2012, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as Administrative Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Regions Bank and U.S. Bank National Association, as Syndication Agents, and the other lenders named therein, with J.P. Morgan Securities LLC, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Regions Capital Markets and U.S. Bank National Association, as joint lead arrangers and joint bookrunners (the “Existing Credit Agreement”). The Existing Credit Agreement provides for a $350 million five-year unsecured revolving credit facility (which may be increased by up to an additional $350 million under certain circumstances) and includes a $50 million subfacility for the issuance of standby letters of credit and a $50 million subfacility for swingline loans. The Existing Credit Agreement also provides for a $150 million five-year unsecured term loan, which was fully funded on the closing of the Existing Credit Agreement. As of September 30, 2013, the outstanding balance on the Existing Credit Agreement was $140.6 million. | ||||
On April 8, 2013, the Company entered into the First Amendment to the Existing Credit Agreement (the “Revolver”) in order to conform certain provisions of the Existing Credit Agreement to the Credit Agreement for the Term Loan. On July 1, 2013, an additional $100 million was used as funding in the NetSpend Merger. As of September 30, 2013, the outstanding balance on the Revolver was $50.0 million. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2013 | |
Share-Based Compensation | ' |
Note 5 — Share-Based Compensation | |
Refer to Notes 1 and 16 of the Company’s audited financial statements for the year ended December 31, 2012, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC, for a discussion regarding the Company’s share-based compensation plans and policy. | |
Share-Based Compensation | |
TSYS’ share-based compensation costs are expensed, rather than capitalized, as these awards are typically granted to individuals not involved in capitalizable activities. For the three months ended September 30, 2013, share-based compensation was $9.8 million, compared to $3.7 million for the same period in 2012. For the nine months ended September 30, 2013, and 2012, share-based compensation was $19.6 million and $12.3 million, respectively. | |
In connection with the NetSpend acquisition, the Company issued 2.0 million replacement awards with a value of $37.4 million. In accordance with GAAP, the portion of the fair value of the replacement awards related to services provided prior to the business combination was included in the total purchase price. The portion of the fair value associated with future service is recognized as expense over the future service period. The awards associated with future service are included in the appropriate classification below based upon the type of award issued. Refer to Note 10 for more information. | |
Nonvested Share Awards | |
During the first nine months of 2013, the Company issued 575,299 shares of TSYS common stock with a market value of $14.0 million to certain key employees and non-management members of its Board of Directors. The nonvested stock bonus awards to certain key employees are for services to be provided in the future and vest over a period of three years. The stock bonus awards to the non-management members of the Board of Directors were fully vested on the date of issuance. The market value of the TSYS common stock at the date of issuance is charged as compensation expense over the vesting periods of the awards. | |
On July 1, 2013, the Company issued 870,361 shares of TSYS common stock as nonvested stock replacement awards with a market value of $21.5 million as part of the NetSpend acquisition. The nonvested stock bonus awards to employees of NetSpend are for services to be provided in the future and vest over varying periods. The NetSpend awards were converted into equivalent shares of the Company’s common stock on the acquisition date. The value of the stock at the date of issuance is charged as compensation expense over the vesting periods of the awards. | |
On July 18, 2013, the Company issued 212,694 retention shares of TSYS common stock with a market value of $5.5 million to certain key employees of NetSpend. The nonvested stock bonus awards to certain key employees are for services to be provided in the future and vest over periods ranging from two to four years. The market value of the TSYS common stock at the date of issuance is charged as compensation expense over the vesting periods of the awards. | |
During the first nine months of 2012, the Company issued 342,074 shares of TSYS common stock with a market value of $7.4 million to certain key employees and non-management members of its Board of Directors. The nonvested stock bonus awards to certain key employees are for services to be provided in the future and vest over a period of three years. The stock bonus awards to the non-management members of the Board of Directors were fully vested on the date of issuance. The market value of the TSYS common stock at the date of issuance is charged as compensation expense over the vesting period of the awards. | |
As of September 30, 2013, there was approximately $34.5 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 2.4 years. | |
Performance-Based Awards | |
During the first nine months of 2013, TSYS authorized a total grant of 237,679 performance shares to certain key executives with a performance-based vesting schedule (2013 performance shares). These 2013 performance shares have a 2013-2015 performance period for which the Compensation Committee of the Board of Directors established two performance goals: revenues before reimbursable items and income from continuing operations and, if such goals are attained in 2015, the performance shares will vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company estimates the probability of achieving the goals through the performance period and expenses the award on a straight-line basis. Compensation costs related to these performance shares are expected to be recognized until the end of 2015. | |
On July 18, 2013, TSYS issued 225,000 shares of TSYS common stock as a performance-based retention stock award to a certain key executive with a performance-based vesting schedule. The performance-based stock award has a 2013-2015 performance period for which the Compensation Committee of the Board of Directors established two performance goals: revenues of the NetSpend segment and operating income of the NetSpend segment and, if such goals are attained in 2015, the performance-based award will vest, up to a maximum of 100% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company estimates the probability of achieving the goals through the performance period and expenses the award on a straight-line basis. Compensation costs related to the performance-based stock award are expected to be recognized until the end of 2015. | |
On July 1, 2013, the Company issued 87,356 shares of TSYS common stock as a performance-based replacement stock award as part of the NetSpend acquisition. The performance-based stock award has a 2013-2015 performance period for which the Compensation Committee of the Board of Directors established two performance goals: revenues of the NetSpend segment and operating income of the NetSpend segment and, if such goals are attained in 2015, the performance award will vest, up to a maximum of 100% of the total grant. The Company estimates the probability of achieving the goals through the performance period and expenses the award on a straight-line basis. Compensation costs related to the performance-based stock award are expected to be recognized until the end of 2015. | |
During the first nine months of 2012, TSYS authorized a total grant of 241,095 performance shares to certain key executives with a performance-based vesting schedule (2012 performance shares). These 2012 performance shares have a 2012-2014 performance period for which the Compensation Committee of the Board of Directors established two performance goals: revenues before reimbursable items and income from continuing operations and, if such goals are attained in 2014, the performance shares will vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company estimates the probability of achieving the goals through the performance period and expenses the award on a straight-line basis. Compensation costs related to these performance shares are expected to be recognized until the end of 2014. | |
Stock Option Awards | |
During the first nine months of 2013, the Company granted 879,613 stock options to key TSYS executive officers and non-management members of its Board of Directors. The weighted average fair value of the option grants was $5.32 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 $24.35; risk-free interest rate of 1.31%; expected volatility of 23.90%; expected term of 7.5 years; and dividend yield of 1.65%. The grants to key TSYS executive officers will vest over a period of three years. The grants to the Board of Directors were fully vested at the date of the grant. | |
On July 1, 2013, the Company issued 1,060,148 stock option replacement awards with a market value of $13.7 million as part of the NetSpend acquisition. The weighted average fair value of the options was $12.93 and was calculated on the date of grant using a conversion factor into equivalent shares of the Company’s common stock on the acquisition date. The grants vest over a period ranging from seven months to 45 months. The weighted average fair value of the option grants was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions: exercise price of $11.68; risk-free interest rate of 1.31%; expected volatility of 29.22%; expected term of 4.7 years; and dividend yield of 1.63%. | |
During the first nine months of 2012, the Company granted 818,090 stock options to key TSYS executive officers and non-management members of its Board of Directors. The weighted average fair value of the option grants was $5.27 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 $22.95; risk-free interest rate of 1.69%; expected volatility of 24.11%; expected term of 7.9 years; and dividend yield of 1.75%. The grants to key TSYS executive officers will vest over a period of 3 years. The grants to the Board of Directors were fully vested at the date of the grant. | |
As of September 30, 2013, there was approximately $7.7 million of total unrecognized compensation cost related to TSYS stock options that is expected to be recognized over a remaining weighted average period of 1.6 years. | |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Note 6 — Income Taxes | |
Refer to Notes 1 and 20 of the Company’s audited financial statements for the year ended December 31, 2012, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC, for a discussion regarding income taxes. | |
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 2008. However, a newly acquired subsidiary is currently undergoing a Federal examination for the years 2009 and 2010. With a few exceptions, the Company is no longer subject to income tax examinations from state, local or foreign authorities for years before 2005. There are currently a number of tax examinations 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 reserve for uncertain tax positions relating to these jurisdictions for such years is adequate. | |
TSYS’ effective tax rate was 32.2% and 33.1% for the three months ended September 30, 2013 and 2012, respectively. TSYS’ effective income tax rate for the nine months ended September 30, 2013 was 30.5%, compared to 31.3% for the same period in 2012. The decreased rates during the period ended September 30, 2013 were primarily due to changes in discrete items, tax credits and the jurisdictional sources of income. | |
TSYS has adopted the provisions of ASC 740, “Income Taxes,” which prescribes a recognition threshold and measurement attribute for the financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken in a tax return. The amount of unrecognized tax benefits decreased by $6.5 million during the nine months ended September 30, 2013. | |
TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the consolidated statements of income. Gross accrued interest and penalties on unrecognized tax benefits totaled $0.4 million and $0.9 million as of September 30, 2013 and December 31, 2012, respectively. The total amounts of unrecognized income tax benefits as of September 30, 2013 and December 31, 2012 that, if recognized, would affect the effective tax rates are $2.8 million and $8.8 million (net of the federal benefit on state tax issues), respectively, which include interest and penalties of $0.3 million and $0.7 million, respectively. TSYS does not expect any material changes to its calculation of uncertain tax positions during the next twelve months. |
Segment_Reporting_and_Major_Cu
Segment Reporting and Major Customers | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Reporting and Major Customers | ' | ||||||||||||||||||||||||||||||||
Note 7 — Segment Reporting and Major Customers | |||||||||||||||||||||||||||||||||
Refer to Note 22 of the Company’s audited financial statements for the year ended December 31, 2012, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC, for a discussion regarding segment reporting and major customers. | |||||||||||||||||||||||||||||||||
On July 1, 2013, TSYS completed its acquisition of all the outstanding stock of NetSpend, which operates as a single reportable business segment and provides GPR prepaid debit and payroll cards and alternative financial service solutions to the underbanked and other consumers in the United States. See Note 10 for additional information relating to the acquisition. | |||||||||||||||||||||||||||||||||
At TSYS, the chief operating decision maker (CODM) is a group consisting of Senior Executive Management and above. The information utilized by the CODM consists of the financial statements and the main metrics monitored are revenue growth and growth in profitability. Upon completion of the NetSpend acquisition, the CODM implemented a new metric called adjusted segment operating income in order to analyze each segment’s results of operations. This new metric consists of operating income adjusted for amortization of acquisition related intangibles and corporate administrative and other costs. All periods presented have been adjusted to reflect this new measure. Depreciation and amortization for the segments changed as a result of this new metric removing amortization associated with intangible assets from the total for the segments. | |||||||||||||||||||||||||||||||||
In early 2013, TSYS embarked on two corporate-wide initiatives that impact more than one operating segment. One initiative is a multi-year, multi-phase initiative that consists of enhancing TSYS’ issuing processing platforms. The other is an innovation initiative focused on enhancing existing product and service offerings through several new product concepts and ideas on how to change existing processes. The costs associated with these two new initiatives are not allocated to the operating segments, but are combined, along with the existing corporate administration, in a grouping titled “Corporate Administration and Other.” This is a change the CODM requested and is used to evaluate performance and assess resources starting in the first quarter of 2013. The following operating results by segment comparison reflects the change in segment reporting from these initiatives, including the 2012 results. | |||||||||||||||||||||||||||||||||
The following table presents the Company’s operating results by segment: | |||||||||||||||||||||||||||||||||
Operating Segments | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Revenues before reimbursable items | |||||||||||||||||||||||||||||||||
North America Services | $ | 217,257 | 203,497 | 637,379 | 613,111 | ||||||||||||||||||||||||||||
International Services | 95,399 | 98,184 | 281,201 | 293,722 | |||||||||||||||||||||||||||||
Merchant Services | 113,650 | 107,786 | 335,903 | 303,842 | |||||||||||||||||||||||||||||
NetSpend | 103,706 | — | 103,706 | — | |||||||||||||||||||||||||||||
Intersegment revenues | (3,001 | ) | (3,415 | ) | (9,429 | ) | (10,753 | ) | |||||||||||||||||||||||||
Revenues before reimbursable items from external customers | $ | 527,011 | 406,052 | 1,348,760 | 1,199,922 | ||||||||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||||||||||||
North America Services | $ | 252,577 | 237,625 | 741,005 | 717,781 | ||||||||||||||||||||||||||||
International Services | 100,548 | 102,691 | 295,731 | 306,466 | |||||||||||||||||||||||||||||
Merchant Services | 135,616 | 132,746 | 404,975 | 383,167 | |||||||||||||||||||||||||||||
NetSpend | 103,706 | — | 103,706 | — | |||||||||||||||||||||||||||||
Intersegment revenues | (4,373 | ) | (5,003 | ) | (13,904 | ) | (15,542 | ) | |||||||||||||||||||||||||
Revenues from external customers | $ | 588,074 | 468,059 | 1,531,513 | 1,391,872 | ||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||
North America Services | $ | 18,764 | 18,583 | 55,060 | 55,856 | ||||||||||||||||||||||||||||
International Services | 11,116 | 14,182 | 34,424 | 41,052 | |||||||||||||||||||||||||||||
Merchant Services | 2,890 | 2,889 | 9,029 | 9,385 | |||||||||||||||||||||||||||||
NetSpend | 1,471 | — | 1,471 | — | |||||||||||||||||||||||||||||
Segment depreciation and amortization | 34,241 | 35,654 | 99,984 | 106,293 | |||||||||||||||||||||||||||||
Acquisition intangible amortization | 24,731 | 6,919 | 41,142 | 18,924 | |||||||||||||||||||||||||||||
Corporate Administration and Other | 475 | 670 | 1,364 | 2,112 | |||||||||||||||||||||||||||||
Total depreciation and amortization | $ | 59,447 | 43,243 | 142,490 | 127,329 | ||||||||||||||||||||||||||||
Adjusted segment operating income | |||||||||||||||||||||||||||||||||
North America Services | $ | 82,274 | 70,080 | 229,373 | 210,658 | ||||||||||||||||||||||||||||
International Services | 10,729 | 8,244 | 26,448 | 22,842 | |||||||||||||||||||||||||||||
Merchant Services | 40,230 | 40,909 | 118,521 | 119,036 | |||||||||||||||||||||||||||||
NetSpend | 31,248 | — | 31,248 | — | |||||||||||||||||||||||||||||
Total adjusted segment operating income | 164,481 | 119,233 | 405,590 | 352,536 | |||||||||||||||||||||||||||||
Acquisition intangible amortization | (24,731 | ) | (6,919 | ) | (41,142 | ) | (18,924 | ) | |||||||||||||||||||||||||
NetSpend merger and acquisition operating expenses (non-recurring) | (7,282 | ) | — | (12,009 | ) | — | |||||||||||||||||||||||||||
Corporate Administration and Other | (26,840 | ) | (21,421 | ) | (76,594 | ) | (65,791 | ) | |||||||||||||||||||||||||
Operating income | $ | 105,628 | 90,893 | 275,845 | 267,821 | ||||||||||||||||||||||||||||
At | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Total assets | |||||||||||||||||||||||||||||||||
North America Services | $ | 3,279,829 | 1,744,877 | ||||||||||||||||||||||||||||||
International Services | 399,368 | 445,642 | |||||||||||||||||||||||||||||||
Merchant Services | 685,400 | 703,725 | |||||||||||||||||||||||||||||||
NetSpend | 1,624,850 | — | |||||||||||||||||||||||||||||||
Intersegment eliminations | (2,234,561 | ) | (870,406 | ) | |||||||||||||||||||||||||||||
Total assets | $ | 3,754,886 | 2,023,838 | ||||||||||||||||||||||||||||||
Revenues by Geographic Area | |||||||||||||||||||||||||||||||||
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. Revenues for NetSpend include a portion of transaction fees and interchange fees received by Issuing Banks along with other products and services provided to customers domiciled in the United States. | |||||||||||||||||||||||||||||||||
The following geographic data presents revenues based on the domicile of the Company’s customers: | |||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
United States | $ | 417.6 | 305.7 | 1,035.70 | 915 | ||||||||||||||||||||||||||||
Europe* | 72 | 71.1 | 213.1 | 217.9 | |||||||||||||||||||||||||||||
Canada | 61.8 | 55 | 179.6 | 156.8 | |||||||||||||||||||||||||||||
Japan* | 17.7 | 21.1 | 50.9 | 59 | |||||||||||||||||||||||||||||
Mexico | 4.6 | 2.9 | 12.9 | 7.9 | |||||||||||||||||||||||||||||
Other* | 14.4 | 12.3 | 39.3 | 35.3 | |||||||||||||||||||||||||||||
Total | $ | 588.1 | 468.1 | 1,531.50 | 1,391.90 | ||||||||||||||||||||||||||||
* | Revenues are impacted by movements in foreign currency exchange rates. | ||||||||||||||||||||||||||||||||
The following tables reconcile geographic revenues to revenues by operating segment based on the domicile of the Company’s customers: | |||||||||||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||||||||||||
North America | International | Merchant | NetSpend | ||||||||||||||||||||||||||||||
Services | Services | Services | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
United States | $ | 178 | 172.6 | — | — | 135.8 | 133.1 | 103.7 | — | ||||||||||||||||||||||||
Europe* | 0.2 | 0.2 | 71.8 | 70.9 | — | — | — | — | |||||||||||||||||||||||||
Canada | 61.8 | 54.9 | — | — | 0.1 | 0.1 | — | — | |||||||||||||||||||||||||
Japan* | — | — | 17.7 | 21.1 | — | — | — | — | |||||||||||||||||||||||||
Mexico | 4.6 | 2.9 | — | — | — | — | — | — | |||||||||||||||||||||||||
Other* | 4 | 2.4 | 10.2 | 9.8 | 0.2 | 0.1 | — | — | |||||||||||||||||||||||||
Total | $ | 248.6 | 233 | 99.7 | 101.8 | 136.1 | 133.3 | 103.7 | — | ||||||||||||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||||||||||||
North America | International | Merchant | NetSpend | ||||||||||||||||||||||||||||||
Services | Services | Services | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
United States | $ | 526 | 530.5 | — | — | 406 | 384.5 | 103.7 | — | ||||||||||||||||||||||||
Europe* | 0.6 | 0.5 | 212.5 | 217.4 | — | — | — | — | |||||||||||||||||||||||||
Canada | 179.5 | 156.7 | — | — | 0.1 | 0.1 | — | — | |||||||||||||||||||||||||
Japan* | — | — | 50.9 | 59 | — | — | — | — | |||||||||||||||||||||||||
Mexico | 12.8 | 7.9 | — | — | — | — | — | — | |||||||||||||||||||||||||
Other* | 10 | 7.4 | 29 | 27.5 | 0.4 | 0.4 | — | — | |||||||||||||||||||||||||
Total | $ | 728.9 | 703 | 292.4 | 303.9 | 406.5 | 385 | 103.7 | — | ||||||||||||||||||||||||
* | Revenues are impacted by movements in foreign currency exchange rates. | ||||||||||||||||||||||||||||||||
The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas: | |||||||||||||||||||||||||||||||||
At | |||||||||||||||||||||||||||||||||
(in millions) | September 30, | December 31, | |||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
United States | $ | 200.6 | 191.7 | ||||||||||||||||||||||||||||||
Europe* | 46.7 | 51.3 | |||||||||||||||||||||||||||||||
Japan* | 6.2 | 9.5 | |||||||||||||||||||||||||||||||
Other* | 6.4 | 7.9 | |||||||||||||||||||||||||||||||
Total | $ | 259.9 | 260.4 | ||||||||||||||||||||||||||||||
* | Total assets are impacted by movements in foreign currency exchange rates. | ||||||||||||||||||||||||||||||||
Major Customers | |||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2013 and 2012, respectively, the Company did not have any major customers. | |||||||||||||||||||||||||||||||||
Supplementary_Cash_Flow_Inform
Supplementary Cash Flow Information | 9 Months Ended |
Sep. 30, 2013 | |
Supplementary Cash Flow Information | ' |
Note 8 — Supplementary Cash Flow Information | |
Nonvested Awards | |
The Company issued shares of common stock to certain key employees. The grants to certain key employees were issued under nonvested stock bonus awards for services to be provided in the future by such officers and employees. In connection with the NetSpend acquisition, the Company issued replacement shares, a portion of which was allocated to the purchase price and a portion of which is for services to be provided in the future. Refer to Note 5 for more information. | |
Equipment and Software Acquired Under Capital Lease Obligations | |
The Company acquired equipment and software under capital lease obligations in the amount of $12.9 million and $5.1 million during the first nine months of 2013 and 2012, respectively, related to software and other peripheral hardware. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies | ' |
Note 9 — Commitments and Contingencies | |
Refer to Note 19 of the Company’s audited financial statements for the year ended December 31, 2012, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC, for a discussion regarding commitments and contingencies. | |
Income Taxes | |
The total liability for uncertain tax positions under ASC 740 as of September 30, 2013 was $2.5 million. Refer to Note 6 for more information on income taxes. The Company is not able to reasonably estimate the amount by which the liability will increase or decrease over time; however, at this time, the Company does not expect a significant change related to these obligations within the next year. | |
Legal Proceedings | |
General | |
The Company is subject to various legal proceedings and claims and is also subject to information requests, inquiries and investigations arising out of the ordinary conduct of its business. The Company establishes reserves for litigation and similar matters when those matters present loss contingencies that TSYS determines to be both probable and reasonably estimable in accordance with ASC 450, “Contingencies.” In the opinion of management, based on current knowledge and in part upon the advice of legal counsel, all matters not specifically discussed below are believed to be adequately covered by insurance, or, if not covered, the possibility of losses from such matters are believed to be remote or such matters are of such kind or involve such amounts that would not have a material adverse effect on the financial position, results of operations or cash flows of the Company if disposed of unfavorably. | |
Preliminary Settlement of Certain Litigation | |
As previously disclosed, a putative class action entitled Koehler v. NetSpend Holdings, Inc. et. al. (the “Koehler action”) was filed in the Court of Chancery of the State of Delaware on March 1, 2013 and a putative class action entitled Bushansky v. NetSpend Holdings, Inc. et al. (together with the Koehler action, the “Actions”) was filed in the District Court of Travis County, Texas on February 25, 2013, each in connection with TSYS’ proposed merger with NetSpend pursuant to the Merger Agreement. On May 21, 2013, the Delaware Chancery Court issued a memorandum opinion in the Koehler action denying the plaintiff’s motion for a preliminary injunction, which sought to enjoin a shareholder vote on the proposed merger. | |
While TSYS and the other defendants believe that each of the Actions is without merit, in an effort to minimize the cost and expense of any litigation relating to such Actions, on May 29, 2013, the defendants reached an agreement in principle with the plaintiffs regarding settlement of the Actions. In connection with the settlement contemplated by that agreement in principle, as set forth in a Memorandum of Understanding, dated as of May 29, 2013, and, later, a Settlement Agreement, dated as of September 20, 2013 (the “Settlement Agreement”), the Actions and all claims asserted therein will be dismissed. In addition, pursuant to the terms of the Settlement Agreement, TSYS and/or NetSpend, where applicable, agreed (a) to make certain amendments to the Merger Agreement; (b) that, consistent with the terms of the Merger Agreement, prior to the receipt of approval of the NetSpend stockholders, NetSpend could furnish information to, and engage in discussions and negotiations with, third parties who make unsolicited bona fide acquisition proposals if certain conditions were met; (c) that the special meeting of NetSpend stockholders that was scheduled to be held on May 31, 2013 would be adjourned to June 18, 2013; (d) that NetSpend would not take certain positions with respect to any appraisal proceeding perfected under Delaware law; (e) that certain information would be provided to counsel for the plaintiffs in the Actions in connection with any perfected appraisal proceeding; and (e) without admitting that any of the claims in the Actions have merit or that any supplemental disclosure was required under any applicable statute, rule, regulation or law, that they would acknowledge that the filing and prosecution of the Actions were the cause, in whole or in part, of certain supplemental disclosures made in connection with the proposed merger. Following submission of the Settlement Agreement to the Court of Chancery, on October 4, 2013, the Court entered an order scheduling further proceedings related to the settlement. Among other things, the Court scheduled a hearing for December 18, 2013 to consider whether or not to approve the settlement as proposed. There can be no assurance that the court will approve the settlement, or that any eventual settlement will be under the same terms as those contemplated by the agreement in principle. |
Acquisitions
Acquisitions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Acquisitions | ' | ||||||||||||||||
Note 10 — Acquisitions | |||||||||||||||||
Refer to Note 24 of the Company’s audited financial statements for the year ended December 31, 2012, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC, for a discussion regarding acquisitions. | |||||||||||||||||
On July 1, 2013, TSYS acquired all the outstanding voting stock of NetSpend, which previously operated as a publicly traded company and is a leading provider of GPR prepaid debit and payroll cards and related financial services to underbanked consumers in the U.S. The acquisition complements the Company’s existing presence in the prepaid processing space. The results of the newly acquired business are being reported by TSYS as a new operating segment titled NetSpend. | |||||||||||||||||
Under terms of the Merger Agreement, TSYS acquired 100 percent ownership of NetSpend for approximately $1.4 billion, including $1.2 billion of cash to shareholders, $70.7 million of cash for payment to holders of stock options and awards, $58.3 million of cash for repayment of NetSpend’s revolving credit facility and $15.6 million in replacement stock options and awards. NetSpend shareholders received $16.00 in cash for each share of NetSpend common stock. There were 1.6 million NetSpend shares held by five shareholders who have asserted appraisal (or dissenters’) rights with respect to their NetSpend shares, for a preliminary value of $25.7 million at $16.00 per share that were not funded at the closing of the acquisition. | |||||||||||||||||
Under the terms of the Merger Agreement, the Company replaced unvested share-based awards for certain current employees of NetSpend. The following table provides a list of all replacement awards and the estimated fair value of those awards issued in conjunction with the acquisition of NetSpend: | |||||||||||||||||
Number of Shares and | Fair Value | ||||||||||||||||
Options Issued | (in millions) | ||||||||||||||||
Time-based restricted stock | 870,361 | $ | 21.5 | ||||||||||||||
Non-qualified stock options | 530,696 | 8.4 | |||||||||||||||
Incentive stock options | 529,452 | 5.3 | |||||||||||||||
Performance-based restricted stock | 87,356 | 2.2 | |||||||||||||||
Total | 2,017,865 | $ | 37.4 | ||||||||||||||
The portion of the fair value of the replacement awards related to services provided prior to the business combination was included in the total purchase price. The portion of the fair value associated with future service is recognized as expense over the future service period, which varies by award. The Company determined that $15.6 million ($11.1 million net of tax) of the replacement awards was related to services rendered prior to the business combination. | |||||||||||||||||
The goodwill amount of $1.0 billion arising from the acquisition consists largely of expansion of customer base, differentiation in market opportunity and economies of scale expected from combining the operations of TSYS and NetSpend. All of the goodwill was assigned to TSYS’ new NetSpend segment. The goodwill recognized is not expected to be deductible for income tax purposes. | |||||||||||||||||
The following table summarizes the consideration paid for NetSpend and the preliminary recognized amounts of the identifiable assets acquired and liabilities assumed on July 1, 2013 (the acquisition date). These amounts will remain preliminary until the valuation analysis has been finalized. The measurement period during which changes in assets, liabilities, equity interests, or items of consideration are subject to adjustment ends one year following the acquisition date. The Company continues to evaluate consideration paid, deferred taxes, goodwill and financial liabilities. | |||||||||||||||||
(in thousands) | |||||||||||||||||
Consideration | |||||||||||||||||
Cash | $ | 1,355,270 | |||||||||||||||
Equity instruments | 15,557 | ||||||||||||||||
Dissenting shareholder liability* | 25,723 | ||||||||||||||||
Fair value of total consideration transferred | $ | 1,396,550 | |||||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||||||||||||
Cash | $ | 40,611 | |||||||||||||||
Accounts receivable, net | 11,335 | ||||||||||||||||
Property, equipment and software | 11,657 | ||||||||||||||||
Identifiable intangible assets | 480,075 | ||||||||||||||||
Deferred tax asset | 10,165 | ||||||||||||||||
Other assets | 33,626 | ||||||||||||||||
Deferred tax liability | (155,945 | ) | |||||||||||||||
Financial liabilities | (62,452 | ) | |||||||||||||||
Total identifiable net assets | 369,072 | ||||||||||||||||
Goodwill | 1,027,478 | ||||||||||||||||
$ | 1,396,550 | ||||||||||||||||
* | Represents 1.6 million NetSpend shares held by dissenting shareholders | ||||||||||||||||
Identifiable intangible assets acquired in the NetSpend acquisition include channel relationships, current technology, a prospect database, the NetSpend trade name and non-compete agreements. | |||||||||||||||||
The identifiable intangible assets had no significant estimated residual value. These intangible assets are being amortized over their estimated useful lives of five to eight years based on the pattern of expected future economic benefit, which approximates a straight-line basis over the useful lives of the assets. The fair value of the acquired identifiable intangible assets of $480.1 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. The fair values and useful lives of the identified intangible assets were primarily determined using forecasted cash flows, which included estimates for certain assumptions such as revenues, expenses, attrition rates and royalty rates. The estimated fair value of identifiable intangible assets acquired in the acquisitions and the related estimated weighted average useful lives are as follows: | |||||||||||||||||
(in millions) | Fair Value | Weighted Average | |||||||||||||||
Useful Life | |||||||||||||||||
(in years) | |||||||||||||||||
Channel relationships | $ | 317.9 | 8 | ||||||||||||||
Covenants-not-to-compete | 11.5 | 6 | |||||||||||||||
Current technology | 78.7 | 7 | |||||||||||||||
Database | 28 | 5 | |||||||||||||||
Trade name | 44 | 5 | |||||||||||||||
Total acquired identifiable intangible assets | $ | 480.1 | 7.3 | ||||||||||||||
The fair value measurement of the identifiable intangible assets represents Level 2 and Level 3 measurements as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 11%, (c) a pre-tax royalty rate range of 2.5-7.0%, (d) attrition rates of 5%-40%, (e) an effective tax rate of 40%, and (f) a terminal value based on a long-term sustainable growth rate of 3%. | |||||||||||||||||
In connection with the acquisition, TSYS incurred $12.0 million in acquisition-related costs primarily related to professional legal, finance, and accounting costs. These costs were expensed as incurred and are included in merger and acquisition expenses on the income statement for the nine months ended September 30, 2013. | |||||||||||||||||
Pro Forma Result of Operations | |||||||||||||||||
The amounts of NetSpend revenue and earnings included in TSYS’ consolidated income statement for the three and nine months ended September 30, 2013, and the pro forma revenue and earnings of the combined entity had the acquisition date been January 1, 2012 are: | |||||||||||||||||
Actual | Supplemental pro forma | ||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Revenue | $ | 588,074 | 468,059 | 588,074 | 552,952 | ||||||||||||
Net income attributable to TSYS common shareholders | $ | 64,350 | 60,312 | 68,935 | 47,085 | ||||||||||||
Basic EPS attributable to TSYS common shareholders | $ | 0.34 | 0.32 | 0.37 | 0.25 | ||||||||||||
Diluted EPS attributable to TSYS common shareholders | $ | 0.34 | 0.32 | 0.36 | 0.25 | ||||||||||||
Actual | Supplemental pro forma | ||||||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Revenue | $ | 1,531,513 | 1,391,872 | 1,753,556 | 1,653,257 | ||||||||||||
Net income attributable to TSYS common shareholders | $ | 179,095 | 183,418 | 182,668 | 139,951 | ||||||||||||
Basic EPS attributable to TSYS common shareholders | $ | 0.95 | 0.97 | 0.97 | 0.74 | ||||||||||||
Diluted EPS attributable to TSYS common shareholders | $ | 0.94 | 0.97 | 0.95 | 0.73 | ||||||||||||
The unaudited pro forma financial information presented above does not purport to represent what the actual results of our operations would have been if the acquisition of NetSpend’s operations had occurred prior to January 1, 2012, nor is it indicative of the future operating results of TSYS. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, including, but not limited to, anticipated cost savings from operating synergies. | |||||||||||||||||
The unaudited pro forma financial information presented in the table above has been adjusted to give effect to adjustments that are (1) directly related to the business combination; (2) factually supportable; and (3) expected to have a continuing impact. These adjustments include, but are not limited to, the application of accounting policies; and depreciation and amortization related to fair value adjustments to property, plant and equipment and intangible assets. | |||||||||||||||||
The pro forma adjustments do not reflect the following material items that result directly from the acquisition and which impacted our statement of operations following the acquisition: | |||||||||||||||||
• | Acquisition and related financing transaction costs relating to fees to investment bankers, attorneys, accountants, and other professional advisors, and other transaction-related costs that were not capitalized as deferred financing costs; and | ||||||||||||||||
• | The effect of anticipated cost savings or operating efficiencies expected to be realized and related restructuring charges such as technology and infrastructure integration expenses, and other costs related to the integration of NetSpend into TSYS. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Note 11 — Earnings Per Share | |||||||||||||||||
The following table illustrates basic and diluted EPS for the three months ended September 30, 2013 and 2012: | |||||||||||||||||
Three months ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands, except per share data) | Common | Participating | Common | Participating | |||||||||||||
Stock | Securities | Stock | Securities | ||||||||||||||
Basic EPS: | |||||||||||||||||
Net income attributable to TSYS common shareholders | $ | 64,350 | 60,312 | ||||||||||||||
Less income allocated to nonvested awards | (605 | ) | 605 | (191 | ) | 191 | |||||||||||
Net income allocated to common stock for EPS calculation (a) | $ | 63,745 | 605 | 60,121 | 191 | ||||||||||||
Average common shares outstanding (b) | 187,726 | 1,799 | 187,269 | 609 | |||||||||||||
Basic EPS (a)/(b) | $ | 0.34 | 0.34 | 0.32 | 0.31 | ||||||||||||
Diluted EPS: | |||||||||||||||||
Net income attributable to TSYS common shareholders | $ | 64,350 | 60,312 | ||||||||||||||
Less income allocated to nonvested awards | (601 | ) | 601 | (191 | ) | 191 | |||||||||||
Net income allocated to common stock for EPS calculation (c) | $ | 63,749 | 601 | 60,121 | 191 | ||||||||||||
Average common shares outstanding | 187,726 | 1,799 | 187,269 | 609 | |||||||||||||
Increase due to assumed issuance of shares related to common equivalent shares outstanding | 1,758 | 1,218 | |||||||||||||||
Average common and common equivalent shares outstanding (d) | 189,484 | 1,799 | 188,487 | 609 | |||||||||||||
Diluted EPS (c)/(d) | $ | 0.34 | 0.33 | 0.32 | 0.31 | ||||||||||||
The following table illustrates basic and diluted EPS for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands, except per share data) | Common | Participating | Common | Participating | |||||||||||||
Stock | Securities | Stock | Securities | ||||||||||||||
Basic EPS: | |||||||||||||||||
Net income attributable to TSYS common shareholders | $ | 179,095 | 183,418 | ||||||||||||||
Less income allocated to nonvested awards | (968 | ) | 968 | (613 | ) | 613 | |||||||||||
Net income allocated to common stock for EPS calculation (a) | $ | 178,127 | 968 | 182,805 | 613 | ||||||||||||
Average common shares outstanding (b) | 187,001 | 1,034 | 187,911 | 642 | |||||||||||||
Basic EPS (a)/(b) | $ | 0.95 | 0.94 | 0.97 | 0.96 | ||||||||||||
Diluted EPS: | |||||||||||||||||
Net income attributable to TSYS common shareholders | $ | 179,095 | 183,418 | ||||||||||||||
Less income allocated to nonvested awards | (962 | ) | 962 | (611 | ) | 611 | |||||||||||
Net income allocated to common stock for EPS calculation (c) | $ | 178,133 | 962 | 182,807 | 611 | ||||||||||||
Average common shares outstanding | 187,001 | 1,034 | 187,911 | 642 | |||||||||||||
Increase due to assumed issuance of shares related to common equivalent shares outstanding | 1,565 | 1,138 | |||||||||||||||
Average common and common equivalent shares outstanding (d) | 188,566 | 1,034 | 189,049 | 642 | |||||||||||||
Diluted EPS (c)/(d) | $ | 0.94 | 0.93 | 0.97 | 0.95 | ||||||||||||
The diluted EPS calculation excludes stock options and nonvested awards that are convertible into 3.0 million and 1.8 million common shares for the three and nine months ended September 30, 2013, respectively, and excludes 2.9 million common shares for the three and nine months ended September 30, 2012, because their inclusion would have been anti-dilutive. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements of TSYS include the accounts of TSYS and its wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
These financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and, therefore, do not include all information and footnotes required by U.S. GAAP for complete financial statements. The preparation of the consolidated financial statements requires management of the Company to make 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. | |
Certain prior period amounts have been reclassified to conform to the current period’s presentation. | |
The accompanying unaudited 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, 2012. Results of interim periods are not necessarily indicative of results to be expected for the year. | |
Cardholders' Reserve | ' |
Cardholders’ reserve | |
The Company is exposed to losses due to cardholder fraud, payment defaults and other forms of cardholder activity, as well as losses, due to non-performance of third parties who receive cardholder funds for transmittal to the Issuing Banks (banks that issue MasterCard International or Visa USA, Inc. branded cards to customers). The Company establishes a reserve for the losses it estimates will arise from processing customer transactions, debit card overdrafts, chargebacks for unauthorized card use and merchant-related chargebacks due to non-delivery of goods or services. These reserves are established based upon historical loss and recovery rates and cardholder activity for which specific losses can be identified. The cardholders’ reserve was approximately $7.2 million as of September 30, 2013. The provision for cardholder losses is included in cost of services in the Consolidated Statements of Income. The Company regularly updates its reserve estimate as new facts become known and events occur that may impact the settlement or recovery of losses. | |
Recently Adopted Accounting Pronouncements | ' |
Recently Adopted Accounting Pronouncements | |
In 2013, the Company adopted Accounting Standards Update (ASU) 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” and (ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.”) The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows. |
Supplementary_Balance_Sheet_In1
Supplementary Balance Sheet Information (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Cash and Cash Equivalent Balances | ' | ||||||||||||||||||||
Cash and cash equivalent balances are summarized as follows: | |||||||||||||||||||||
(in thousands) | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Cash and cash equivalents in domestic accounts | $ | 328,918 | 152,373 | ||||||||||||||||||
Cash and cash equivalents in foreign accounts | 67,942 | 95,239 | |||||||||||||||||||
Total | $ | 396,860 | 247,612 | ||||||||||||||||||
Significant Components of Prepaid Expenses and Other Current Assets | ' | ||||||||||||||||||||
Significant components of prepaid expenses and other current assets are summarized as follows: | |||||||||||||||||||||
(in thousands) | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Prepaid expenses | $ | 35,696 | 24,615 | ||||||||||||||||||
Supplies inventory | 11,650 | 8,881 | |||||||||||||||||||
Other | 40,176 | 36,710 | |||||||||||||||||||
Total | $ | 87,522 | 70,206 | ||||||||||||||||||
Significant Components of Contract Acquisition Costs, Net of Accumulated Amortization | ' | ||||||||||||||||||||
Significant components of contract acquisition costs, net of accumulated amortization, are summarized as follows: | |||||||||||||||||||||
(in thousands) | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Conversion costs, net of accumulated amortization of $118.7 million and $105.4 million at 2013 and 2012, respectively | $ | 102,177 | 85,402 | ||||||||||||||||||
Payments for processing rights, net of accumulated amortization of $120.3 million and $110.6 million at 2013 and 2012, respectively | 71,663 | 75,865 | |||||||||||||||||||
Total | $ | 173,840 | 161,267 | ||||||||||||||||||
Significant Components of Other Current Liabilities | ' | ||||||||||||||||||||
Significant components of other current liabilities are summarized as follows: | |||||||||||||||||||||
(in thousands) | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Deferred revenues | $ | 32,764 | 29,101 | ||||||||||||||||||
Dissenting shareholder liability* | 25,723 | — | |||||||||||||||||||
Accrued expenses | 23,699 | 30,963 | |||||||||||||||||||
Dividends payable | 19,458 | 729 | |||||||||||||||||||
Accrued income taxes | 1,799 | 10,936 | |||||||||||||||||||
Other | 69,747 | 28,553 | |||||||||||||||||||
Total | $ | 173,190 | 100,282 | ||||||||||||||||||
* | Represents 1.6 million NetSpend shares held by dissenting shareholders | ||||||||||||||||||||
Income Tax Effects Allocated to and Cumulative Balance of Accumulated Other Comprehensive Income (loss) | ' | ||||||||||||||||||||
The income tax effects allocated to and the cumulative balance of accumulated other comprehensive income (loss) attributable to TSYS shareholders are as follows: | |||||||||||||||||||||
(in thousands) | Beginning | Pretax | Tax | Net-of-Tax | Ending | ||||||||||||||||
Balance | Amount | Effect | Amount | Balance | |||||||||||||||||
December 31, | September 30, | ||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||
Foreign currency translation adjustments and transfers from noncontrolling interests | $ | 3,360 | (4,418 | ) | 112 | (4,530 | ) | (1,170 | ) | ||||||||||||
Unrealized gain on available-for-sale securities | — | 2,344 | 865 | 1,479 | 1,479 | ||||||||||||||||
Change in AOCI related to postretirement healthcare plans | (1,952 | ) | 1,357 | (66 | ) | 1,423 | (529 | ) | |||||||||||||
Total | $ | 1,408 | (717 | ) | 911 | (1,628 | ) | (220 | ) | ||||||||||||
Segment_Reporting_and_Major_Cu1
Segment Reporting and Major Customers (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Operating Segments | ' | ||||||||||||||||||||||||||||||||
The following table presents the Company’s operating results by segment: | |||||||||||||||||||||||||||||||||
Operating Segments | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Revenues before reimbursable items | |||||||||||||||||||||||||||||||||
North America Services | $ | 217,257 | 203,497 | 637,379 | 613,111 | ||||||||||||||||||||||||||||
International Services | 95,399 | 98,184 | 281,201 | 293,722 | |||||||||||||||||||||||||||||
Merchant Services | 113,650 | 107,786 | 335,903 | 303,842 | |||||||||||||||||||||||||||||
NetSpend | 103,706 | — | 103,706 | — | |||||||||||||||||||||||||||||
Intersegment revenues | (3,001 | ) | (3,415 | ) | (9,429 | ) | (10,753 | ) | |||||||||||||||||||||||||
Revenues before reimbursable items from external customers | $ | 527,011 | 406,052 | 1,348,760 | 1,199,922 | ||||||||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||||||||||||
North America Services | $ | 252,577 | 237,625 | 741,005 | 717,781 | ||||||||||||||||||||||||||||
International Services | 100,548 | 102,691 | 295,731 | 306,466 | |||||||||||||||||||||||||||||
Merchant Services | 135,616 | 132,746 | 404,975 | 383,167 | |||||||||||||||||||||||||||||
NetSpend | 103,706 | — | 103,706 | — | |||||||||||||||||||||||||||||
Intersegment revenues | (4,373 | ) | (5,003 | ) | (13,904 | ) | (15,542 | ) | |||||||||||||||||||||||||
Revenues from external customers | $ | 588,074 | 468,059 | 1,531,513 | 1,391,872 | ||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||
North America Services | $ | 18,764 | 18,583 | 55,060 | 55,856 | ||||||||||||||||||||||||||||
International Services | 11,116 | 14,182 | 34,424 | 41,052 | |||||||||||||||||||||||||||||
Merchant Services | 2,890 | 2,889 | 9,029 | 9,385 | |||||||||||||||||||||||||||||
NetSpend | 1,471 | — | 1,471 | — | |||||||||||||||||||||||||||||
Segment depreciation and amortization | 34,241 | 35,654 | 99,984 | 106,293 | |||||||||||||||||||||||||||||
Acquisition intangible amortization | 24,731 | 6,919 | 41,142 | 18,924 | |||||||||||||||||||||||||||||
Corporate Administration and Other | 475 | 670 | 1,364 | 2,112 | |||||||||||||||||||||||||||||
Total depreciation and amortization | $ | 59,447 | 43,243 | 142,490 | 127,329 | ||||||||||||||||||||||||||||
Adjusted segment operating income | |||||||||||||||||||||||||||||||||
North America Services | $ | 82,274 | 70,080 | 229,373 | 210,658 | ||||||||||||||||||||||||||||
International Services | 10,729 | 8,244 | 26,448 | 22,842 | |||||||||||||||||||||||||||||
Merchant Services | 40,230 | 40,909 | 118,521 | 119,036 | |||||||||||||||||||||||||||||
NetSpend | 31,248 | — | 31,248 | — | |||||||||||||||||||||||||||||
Total adjusted segment operating income | 164,481 | 119,233 | 405,590 | 352,536 | |||||||||||||||||||||||||||||
Acquisition intangible amortization | (24,731 | ) | (6,919 | ) | (41,142 | ) | (18,924 | ) | |||||||||||||||||||||||||
NetSpend merger and acquisition operating expenses (non-recurring) | (7,282 | ) | — | (12,009 | ) | — | |||||||||||||||||||||||||||
Corporate Administration and Other | (26,840 | ) | (21,421 | ) | (76,594 | ) | (65,791 | ) | |||||||||||||||||||||||||
Operating income | $ | 105,628 | 90,893 | 275,845 | 267,821 | ||||||||||||||||||||||||||||
At | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Total assets | |||||||||||||||||||||||||||||||||
North America Services | $ | 3,279,829 | 1,744,877 | ||||||||||||||||||||||||||||||
International Services | 399,368 | 445,642 | |||||||||||||||||||||||||||||||
Merchant Services | 685,400 | 703,725 | |||||||||||||||||||||||||||||||
NetSpend | 1,624,850 | — | |||||||||||||||||||||||||||||||
Intersegment eliminations | (2,234,561 | ) | (870,406 | ) | |||||||||||||||||||||||||||||
Total assets | $ | 3,754,886 | 2,023,838 | ||||||||||||||||||||||||||||||
Revenues Based on Domicile of Customers | ' | ||||||||||||||||||||||||||||||||
The following geographic data presents revenues based on the domicile of the Company’s customers: | |||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
United States | $ | 417.6 | 305.7 | 1,035.70 | 915 | ||||||||||||||||||||||||||||
Europe* | 72 | 71.1 | 213.1 | 217.9 | |||||||||||||||||||||||||||||
Canada | 61.8 | 55 | 179.6 | 156.8 | |||||||||||||||||||||||||||||
Japan* | 17.7 | 21.1 | 50.9 | 59 | |||||||||||||||||||||||||||||
Mexico | 4.6 | 2.9 | 12.9 | 7.9 | |||||||||||||||||||||||||||||
Other* | 14.4 | 12.3 | 39.3 | 35.3 | |||||||||||||||||||||||||||||
Total | $ | 588.1 | 468.1 | 1,531.50 | 1,391.90 | ||||||||||||||||||||||||||||
* | Revenues are impacted by movements in foreign currency exchange rates. | ||||||||||||||||||||||||||||||||
Reconciliation of Geographic Revenues to Revenues by Operating Segments | ' | ||||||||||||||||||||||||||||||||
The following tables reconcile geographic revenues to revenues by operating segment based on the domicile of the Company’s customers: | |||||||||||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||||||||||||
North America | International | Merchant | NetSpend | ||||||||||||||||||||||||||||||
Services | Services | Services | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
United States | $ | 178 | 172.6 | — | — | 135.8 | 133.1 | 103.7 | — | ||||||||||||||||||||||||
Europe* | 0.2 | 0.2 | 71.8 | 70.9 | — | — | — | — | |||||||||||||||||||||||||
Canada | 61.8 | 54.9 | — | — | 0.1 | 0.1 | — | — | |||||||||||||||||||||||||
Japan* | — | — | 17.7 | 21.1 | — | — | — | — | |||||||||||||||||||||||||
Mexico | 4.6 | 2.9 | — | — | — | — | — | — | |||||||||||||||||||||||||
Other* | 4 | 2.4 | 10.2 | 9.8 | 0.2 | 0.1 | — | — | |||||||||||||||||||||||||
Total | $ | 248.6 | 233 | 99.7 | 101.8 | 136.1 | 133.3 | 103.7 | — | ||||||||||||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||||||||||||
North America | International | Merchant | NetSpend | ||||||||||||||||||||||||||||||
Services | Services | Services | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
United States | $ | 526 | 530.5 | — | — | 406 | 384.5 | 103.7 | — | ||||||||||||||||||||||||
Europe* | 0.6 | 0.5 | 212.5 | 217.4 | — | — | — | — | |||||||||||||||||||||||||
Canada | 179.5 | 156.7 | — | — | 0.1 | 0.1 | — | — | |||||||||||||||||||||||||
Japan* | — | — | 50.9 | 59 | — | — | — | — | |||||||||||||||||||||||||
Mexico | 12.8 | 7.9 | — | — | — | — | — | — | |||||||||||||||||||||||||
Other* | 10 | 7.4 | 29 | 27.5 | 0.4 | 0.4 | — | — | |||||||||||||||||||||||||
Total | $ | 728.9 | 703 | 292.4 | 303.9 | 406.5 | 385 | 103.7 | — | ||||||||||||||||||||||||
* | Revenues are impacted by movements in foreign currency exchange rates. | ||||||||||||||||||||||||||||||||
Property and Equipment, Net of Accumulated Depreciation and Amortization, by Geographic Areas | ' | ||||||||||||||||||||||||||||||||
The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas: | |||||||||||||||||||||||||||||||||
At | |||||||||||||||||||||||||||||||||
(in millions) | September 30, | December 31, | |||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
United States | $ | 200.6 | 191.7 | ||||||||||||||||||||||||||||||
Europe* | 46.7 | 51.3 | |||||||||||||||||||||||||||||||
Japan* | 6.2 | 9.5 | |||||||||||||||||||||||||||||||
Other* | 6.4 | 7.9 | |||||||||||||||||||||||||||||||
Total | $ | 259.9 | 260.4 | ||||||||||||||||||||||||||||||
* | Total assets are impacted by movements in foreign currency exchange rates. |
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Awards and Estimated Fair Value of Awards Issued in Acquisition | ' | ||||||||||||||||
The following table provides a list of all replacement awards and the estimated fair value of those awards issued in conjunction with the acquisition of NetSpend: | |||||||||||||||||
Number of Shares and | Fair Value | ||||||||||||||||
Options Issued | (in millions) | ||||||||||||||||
Time-based restricted stock | 870,361 | $ | 21.5 | ||||||||||||||
Non-qualified stock options | 530,696 | 8.4 | |||||||||||||||
Incentive stock options | 529,452 | 5.3 | |||||||||||||||
Performance-based restricted stock | 87,356 | 2.2 | |||||||||||||||
Total | 2,017,865 | $ | 37.4 | ||||||||||||||
Amounts of Assets Aquired and Liabilities Assumed Recognized | ' | ||||||||||||||||
The Company continues to evaluate consideration paid, deferred taxes, goodwill and financial liabilities. | |||||||||||||||||
(in thousands) | |||||||||||||||||
Consideration | |||||||||||||||||
Cash | $ | 1,355,270 | |||||||||||||||
Equity instruments | 15,557 | ||||||||||||||||
Dissenting shareholder liability* | 25,723 | ||||||||||||||||
Fair value of total consideration transferred | $ | 1,396,550 | |||||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||||||||||||
Cash | $ | 40,611 | |||||||||||||||
Accounts receivable, net | 11,335 | ||||||||||||||||
Property, equipment and software | 11,657 | ||||||||||||||||
Identifiable intangible assets | 480,075 | ||||||||||||||||
Deferred tax asset | 10,165 | ||||||||||||||||
Other assets | 33,626 | ||||||||||||||||
Deferred tax liability | (155,945 | ) | |||||||||||||||
Financial liabilities | (62,452 | ) | |||||||||||||||
Total identifiable net assets | 369,072 | ||||||||||||||||
Goodwill | 1,027,478 | ||||||||||||||||
$ | 1,396,550 | ||||||||||||||||
* | Represents 1.6 million NetSpend shares held by dissenting shareholders | ||||||||||||||||
Estimated Fair Value of Identifiable Intangible Assets Acquired | ' | ||||||||||||||||
The estimated fair value of identifiable intangible assets acquired in the acquisitions and the related estimated weighted average useful lives are as follows: | |||||||||||||||||
(in millions) | Fair Value | Weighted Average | |||||||||||||||
Useful Life | |||||||||||||||||
(in years) | |||||||||||||||||
Channel relationships | $ | 317.9 | 8 | ||||||||||||||
Covenants-not-to-compete | 11.5 | 6 | |||||||||||||||
Current technology | 78.7 | 7 | |||||||||||||||
Database | 28 | 5 | |||||||||||||||
Trade name | 44 | 5 | |||||||||||||||
Total acquired identifiable intangible assets | $ | 480.1 | 7.3 | ||||||||||||||
Pro Forma Revenue and Earnings | ' | ||||||||||||||||
The amounts of NetSpend revenue and earnings included in TSYS’ consolidated income statement for the three and nine months ended September 30, 2013, and the pro forma revenue and earnings of the combined entity had the acquisition date been January 1, 2012 are: | |||||||||||||||||
Actual | Supplemental pro forma | ||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Revenue | $ | 588,074 | 468,059 | 588,074 | 552,952 | ||||||||||||
Net income attributable to TSYS common shareholders | $ | 64,350 | 60,312 | 68,935 | 47,085 | ||||||||||||
Basic EPS attributable to TSYS common shareholders | $ | 0.34 | 0.32 | 0.37 | 0.25 | ||||||||||||
Diluted EPS attributable to TSYS common shareholders | $ | 0.34 | 0.32 | 0.36 | 0.25 | ||||||||||||
Actual | Supplemental pro forma | ||||||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Revenue | $ | 1,531,513 | 1,391,872 | 1,753,556 | 1,653,257 | ||||||||||||
Net income attributable to TSYS common shareholders | $ | 179,095 | 183,418 | 182,668 | 139,951 | ||||||||||||
Basic EPS attributable to TSYS common shareholders | $ | 0.95 | 0.97 | 0.97 | 0.74 | ||||||||||||
Diluted EPS attributable to TSYS common shareholders | $ | 0.94 | 0.97 | 0.95 | 0.73 | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following table illustrates basic and diluted EPS for the three months ended September 30, 2013 and 2012: | |||||||||||||||||
Three months ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands, except per share data) | Common | Participating | Common | Participating | |||||||||||||
Stock | Securities | Stock | Securities | ||||||||||||||
Basic EPS: | |||||||||||||||||
Net income attributable to TSYS common shareholders | $ | 64,350 | 60,312 | ||||||||||||||
Less income allocated to nonvested awards | (605 | ) | 605 | (191 | ) | 191 | |||||||||||
Net income allocated to common stock for EPS calculation (a) | $ | 63,745 | 605 | 60,121 | 191 | ||||||||||||
Average common shares outstanding (b) | 187,726 | 1,799 | 187,269 | 609 | |||||||||||||
Basic EPS (a)/(b) | $ | 0.34 | 0.34 | 0.32 | 0.31 | ||||||||||||
Diluted EPS: | |||||||||||||||||
Net income attributable to TSYS common shareholders | $ | 64,350 | 60,312 | ||||||||||||||
Less income allocated to nonvested awards | (601 | ) | 601 | (191 | ) | 191 | |||||||||||
Net income allocated to common stock for EPS calculation (c) | $ | 63,749 | 601 | 60,121 | 191 | ||||||||||||
Average common shares outstanding | 187,726 | 1,799 | 187,269 | 609 | |||||||||||||
Increase due to assumed issuance of shares related to common equivalent shares outstanding | 1,758 | 1,218 | |||||||||||||||
Average common and common equivalent shares outstanding (d) | 189,484 | 1,799 | 188,487 | 609 | |||||||||||||
Diluted EPS (c)/(d) | $ | 0.34 | 0.33 | 0.32 | 0.31 | ||||||||||||
The following table illustrates basic and diluted EPS for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands, except per share data) | Common | Participating | Common | Participating | |||||||||||||
Stock | Securities | Stock | Securities | ||||||||||||||
Basic EPS: | |||||||||||||||||
Net income attributable to TSYS common shareholders | $ | 179,095 | 183,418 | ||||||||||||||
Less income allocated to nonvested awards | (968 | ) | 968 | (613 | ) | 613 | |||||||||||
Net income allocated to common stock for EPS calculation (a) | $ | 178,127 | 968 | 182,805 | 613 | ||||||||||||
Average common shares outstanding (b) | 187,001 | 1,034 | 187,911 | 642 | |||||||||||||
Basic EPS (a)/(b) | $ | 0.95 | 0.94 | 0.97 | 0.96 | ||||||||||||
Diluted EPS: | |||||||||||||||||
Net income attributable to TSYS common shareholders | $ | 179,095 | 183,418 | ||||||||||||||
Less income allocated to nonvested awards | (962 | ) | 962 | (611 | ) | 611 | |||||||||||
Net income allocated to common stock for EPS calculation (c) | $ | 178,133 | 962 | 182,807 | 611 | ||||||||||||
Average common shares outstanding | 187,001 | 1,034 | 187,911 | 642 | |||||||||||||
Increase due to assumed issuance of shares related to common equivalent shares outstanding | 1,565 | 1,138 | |||||||||||||||
Average common and common equivalent shares outstanding (d) | 188,566 | 1,034 | 189,049 | 642 | |||||||||||||
Diluted EPS (c)/(d) | $ | 0.94 | 0.93 | 0.97 | 0.95 | ||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Significant Accounting Policies [Line Items] | ' |
Cardholders' loss reserve | $7.20 |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Goodwill | $1,545,784 | $518,344 |
Cash_and_Cash_Equivalent_Balan
Cash and Cash Equivalent Balances (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Line Items] | ' | ' |
Cash and cash equivalents in domestic accounts | $328,918 | $152,373 |
Cash and cash equivalents in foreign accounts | 67,942 | 95,239 |
Total | $396,860 | $247,612 |
Supplementary_Balance_Sheet_In2
Supplementary Balance Sheet Information - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Cash and cash equivalents, money market accounts | $5 | ' | $5 | ' | $2.50 |
Amortization expense related to conversion costs | 3.9 | 6 | 13.4 | 17.5 | ' |
Amortization related to payments for processing rights | $3.30 | $3.20 | $9.80 | $10 | ' |
Maximum | ' | ' | ' | ' | ' |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Cash and cash equivalents, money market accounts, original maturity date | '90 days | ' | '90 days | ' | '90 days |
Significant_Components_of_Prep
Significant Components of Prepaid Expenses and Other Current Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ' | ' |
Prepaid expenses | $35,696 | $24,615 |
Supplies inventory | 11,650 | 8,881 |
Other | 40,176 | 36,710 |
Total | $87,522 | $70,206 |
Significant_Components_of_Cont
Significant Components of Contract Acquisition Costs, Net of Accumulated Amortization (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Conversion costs, net of accumulated amortization of $118.7 million and $105.4 million at 2013 and 2012, respectively | $102,177 | $85,402 |
Payments for processing rights, net of accumulated amortization of $120.3 million and $110.6 million at 2013 and 2012, respectively | 71,663 | 75,865 |
Total | $173,840 | $161,267 |
Significant_Components_of_Cont1
Significant Components of Contract Acquisition Costs, Net of Accumulated Amortization (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Conversion costs, accumulated amortization | $118.70 | $105.40 |
Payments for processing rights, accumulated amortization | $120.30 | $110.60 |
Significant_Components_of_Othe
Significant Components of Other Current Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Other Liabilities [Line Items] | ' | ' | |
Deferred revenues | $32,764 | $29,101 | |
Dissenting shareholder liability | 25,723 | [1] | ' |
Accrued expenses | 23,699 | 30,963 | |
Dividends payable | 19,458 | 729 | |
Accrued income taxes | 1,799 | 10,936 | |
Other | 69,747 | 28,553 | |
Total | $173,190 | $100,282 | |
[1] | Represents 1.6 million NetSpend shares held by dissenting shareholders |
Significant_Components_of_Othe1
Significant Components of Other Current Liabilities (Parenthetical) (Detail) (NetSpend Holdings Inc) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
NetSpend Holdings Inc | ' |
Other Liabilities [Line Items] | ' |
Dissenting shareholder, shares | 1.6 |
Income_Tax_Effects_Allocated_t
Income Tax Effects Allocated to and Cumulative Balance of Accumulated Other Comprehensive Income (loss) (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning Balance | $1,408 |
Pretax Amount | -717 |
Tax Effect | 911 |
Net-of-Tax Amount | -1,628 |
Ending Balance | -220 |
Foreign currency translation adjustments and transfers from NCI | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning Balance | 3,360 |
Pretax Amount | -4,418 |
Tax Effect | 112 |
Net-of-Tax Amount | -4,530 |
Ending Balance | -1,170 |
Unrealized gain on available-for-sale securities | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Pretax Amount | 2,344 |
Tax Effect | 865 |
Net-of-Tax Amount | 1,479 |
Ending Balance | 1,479 |
Change in Accumulated OCI Related to postretirement healthcare plans | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning Balance | -1,952 |
Pretax Amount | 1,357 |
Tax Effect | -66 |
Net-of-Tax Amount | 1,423 |
Ending Balance | ($529) |
Longterm_Debt_Additional_Infor
Long-term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||
Jul. 01, 2013 | 22-May-13 | 22-May-13 | 22-May-13 | Sep. 10, 2012 | Sep. 30, 2013 | Jul. 01, 2013 | Sep. 30, 2013 | Sep. 10, 2012 | Sep. 10, 2012 | Sep. 10, 2012 | Feb. 19, 2013 | Feb. 19, 2013 | Apr. 08, 2013 | Sep. 30, 2013 | Apr. 08, 2013 | Apr. 08, 2013 | Apr. 08, 2013 | |
NetSpend Holdings Inc | 2.375% Senior Notes due 2018 | 3.750% Senior Notes due 2023 | Senior Notes | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Bridge Loan Facility | Bridge Loan Facility | Term Loan | Term Loan | Term Loan | Term Loan | Term Loan | |
NetSpend Holdings Inc | NetSpend Holdings Inc | Maximum | Standby letters of credit | Swingline loans | Before Amendment | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | ||||||||||
Maximum | Minimum | |||||||||||||||||
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement term | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' |
Credit agreement, maximum borrowing capacity | ' | ' | ' | ' | $350,000,000 | ' | ' | ' | ' | $50,000,000 | $50,000,000 | ' | ' | $200,000,000 | ' | ' | ' | ' |
Debt instrument, margin rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.13% | 1.75% | 1.00% |
Outstanding balance on the Credit Agreement | ' | ' | ' | ' | ' | 140,600,000 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | 197,500,000 | ' | ' | ' |
Bridge loan facility, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '364 days | ' | ' | ' | ' | ' | ' |
Credit agreement commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000,000 | ' | ' | ' | ' | ' |
Debt instrument, fee amount | ' | ' | ' | 8,900,000 | ' | ' | ' | ' | ' | ' | ' | 5,900,000 | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | 550,000,000 | 550,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes maturity year | ' | '2018 | '2023 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes interest rate | ' | 2.38% | 3.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, discount | ' | ' | ' | 4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, cost of acquired entity, purchase price | 1,396,550,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured revolving credit facility, increased additional borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity period | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from credit agreement, additional funding amount | ' | ' | ' | ' | ' | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
NetSpend Holdings Inc | Performance Share Plan Twenty Thirteen | Performance Share Plan Twenty Thirteen | Performance Share Plan Twenty Thirteen | Performance Share Plan 2012 | Performance Share Plan 2012 | Performance Share Plan 2012 | Replacement Awards | Unvested Restricted Awards | Unvested Restricted Awards | Unvested Restricted Awards | Unvested Restricted Awards | Unvested Restricted Awards | Unvested Restricted Awards | Unvested Restricted Awards | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Unvested Stock Awards | Performance Share Plan | Performance Share Plan | Performance Share Plan | Performance Share Plan | |||||
Minimum | Maximum | Minimum | Maximum | NetSpend Holdings Inc | Certain key Employees | Certain key Employees | Retention Shares | Retention Shares | Retention Shares | Replacement Awards | Replacement Awards | Replacement Awards | Replacement Awards | Replacement Awards | Replacement Awards | 2013 NetSpend Retention Performance Shares | 2013 NetSpend Retention Performance Shares | 2013 NetSpend Retention Performance Shares | ||||||||||||
NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | |||||||||||||||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | |||||||||||||||||||||||||
Certain key Employees | Certain key Employees | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | $9,800,000 | $3,700,000 | $19,587,000 | $12,348,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued | ' | ' | ' | ' | 2,017,865 | ' | ' | ' | ' | ' | ' | 2,000,000 | 575,299 | 342,074 | ' | ' | 212,694 | ' | ' | ' | ' | ' | 1,060,148 | ' | ' | 870,361 | 87,356 | 225,000 | ' | ' |
Value of awards issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,400,000 | 14,000,000 | 7,400,000 | ' | ' | 5,500,000 | ' | ' | ' | ' | ' | 13,700,000 | ' | ' | 21,500,000 | ' | ' | ' | ' |
Stock bonus awards vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | '4 years | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to non vested share-based compensation arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34,500,000 | ' | ' | ' | ' | ' | ' | $7,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to non vested share-based compensation arrangements, remaining weighted average recognition period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 4 months 24 days | ' | ' | ' | ' | ' | ' | '1 year 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized shares of nonvested stock to key executives | ' | ' | ' | ' | ' | 237,679 | ' | ' | 241,095 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of performance shares grant expected to vest | ' | ' | ' | ' | ' | 200.00% | ' | ' | 200.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' |
Performance shares grant expected vesting Period | ' | ' | ' | ' | ' | ' | '2013 | '2015 | ' | '2012 | '2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2013 | '2015 |
Number of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 879,613 | 818,090 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average fair value of option grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.32 | $5.27 | ' | $12.93 | ' | ' | ' | ' | ' | ' | ' |
Exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24.35 | $22.95 | $11.68 | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.31% | 1.69% | 1.31% | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.90% | 24.11% | 29.22% | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years 6 months | '7 years 10 months 24 days | '4 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.65% | 1.75% | 1.63% | ' | ' | ' | ' | ' | ' | ' | ' |
Grant vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | '7 months | '45 months | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' |
Effective tax rate attributable to continuing operations | 32.20% | 33.10% | 30.50% | 31.30% | ' |
Increase in unrecognized tax benefits | ' | ' | $6.50 | ' | ' |
Gross accrued interest and penalties on unrecognized tax benefits | 0.4 | ' | 0.4 | ' | 0.9 |
Unrecognized income tax benefits that, if recognized, would affect the effective tax rates | 2.8 | ' | 2.8 | ' | 8.8 |
Unrecognized income tax benefits that, if recognized, would affect the effective tax rates , interest and penalties | $0.30 | ' | $0.30 | ' | $0.70 |
Operating_Segments_Detail
Operating Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues before reimbursable items | $527,011 | $406,052 | $1,348,760 | $1,199,922 | ' |
Revenue for reportable segment | 588,074 | 468,059 | 1,531,513 | 1,391,872 | ' |
Depreciation and amortization | 59,447 | 43,243 | 142,490 | 127,329 | ' |
Operating income | 105,628 | 90,893 | 275,845 | 267,821 | ' |
Total assets | 3,754,886 | ' | 3,754,886 | ' | 2,023,838 |
North America Services | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue for reportable segment | 248,600 | 233,000 | 728,900 | 703,000 | ' |
International Services | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue for reportable segment | 99,700 | 101,800 | 292,400 | 303,900 | ' |
Merchant Services | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue for reportable segment | 136,100 | 133,300 | 406,500 | 385,000 | ' |
NetSpend | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue for reportable segment | 103,700 | ' | 103,700 | ' | ' |
Operating Segments | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Depreciation and amortization | 34,241 | 35,654 | 99,984 | 106,293 | ' |
Operating income | 164,481 | 119,233 | 405,590 | 352,536 | ' |
Operating Segments | North America Services | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues before reimbursable items | 217,257 | 203,497 | 637,379 | 613,111 | ' |
Revenue for reportable segment | 252,577 | 237,625 | 741,005 | 717,781 | ' |
Depreciation and amortization | 18,764 | 18,583 | 55,060 | 55,856 | ' |
Operating income | 82,274 | 70,080 | 229,373 | 210,658 | ' |
Total assets | 3,279,829 | ' | 3,279,829 | ' | 1,744,877 |
Operating Segments | International Services | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues before reimbursable items | 95,399 | 98,184 | 281,201 | 293,722 | ' |
Revenue for reportable segment | 100,548 | 102,691 | 295,731 | 306,466 | ' |
Depreciation and amortization | 11,116 | 14,182 | 34,424 | 41,052 | ' |
Operating income | 10,729 | 8,244 | 26,448 | 22,842 | ' |
Total assets | 399,368 | ' | 399,368 | ' | 445,642 |
Operating Segments | Merchant Services | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues before reimbursable items | 113,650 | 107,786 | 335,903 | 303,842 | ' |
Revenue for reportable segment | 135,616 | 132,746 | 404,975 | 383,167 | ' |
Depreciation and amortization | 2,890 | 2,889 | 9,029 | 9,385 | ' |
Operating income | 40,230 | 40,909 | 118,521 | 119,036 | ' |
Total assets | 685,400 | ' | 685,400 | ' | 703,725 |
Operating Segments | NetSpend | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues before reimbursable items | 103,706 | ' | 103,706 | ' | ' |
Revenue for reportable segment | 103,706 | ' | 103,706 | ' | ' |
Depreciation and amortization | 1,471 | ' | 1,471 | ' | ' |
Operating income | 31,248 | ' | 31,248 | ' | ' |
Total assets | 1,624,850 | ' | 1,624,850 | ' | ' |
Intersegment Elimination | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues before reimbursable items | 3,001 | 3,415 | 9,429 | 10,753 | ' |
Revenue for reportable segment | 4,373 | 5,003 | 13,904 | 15,542 | ' |
Total assets | 2,234,561 | ' | 2,234,561 | ' | 870,406 |
Segment Reconciling Items | Acquisition Related Intangible Assets | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Depreciation and amortization | 24,731 | 6,919 | 41,142 | 18,924 | ' |
Operating income | -24,731 | -6,919 | -41,142 | -18,924 | ' |
Corporate, Non-Segment | NetSpend | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating income | -7,282 | ' | -12,009 | ' | ' |
Corporate, Non-Segment | Corporate Administration | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Depreciation and amortization | 475 | 670 | 1,364 | 2,112 | ' |
Operating income | ($26,840) | ($21,421) | ($76,594) | ($65,791) | ' |
Revenues_Based_on_Domicile_of_
Revenues Based on Domicile of Company's Customers (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | $588,074 | $468,059 | $1,531,513 | $1,391,872 | ||||
United States | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 417,600 | 305,700 | 1,035,700 | 915,000 | ||||
Europe | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 72,000 | [1] | 71,100 | [1] | 213,100 | [1] | 217,900 | [1] |
Canada | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 61,800 | 55,000 | 179,600 | 156,800 | ||||
Japan | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 17,700 | [1] | 21,100 | [1] | 50,900 | [1] | 59,000 | [1] |
Mexico | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 4,600 | 2,900 | 12,900 | 7,900 | ||||
Other | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | $14,400 | [1] | $12,300 | [1] | $39,300 | [1] | $35,300 | [1] |
[1] | Revenues are impacted by movements in foreign currency exchange rates. |
Reconciliation_of_Geographic_R
Reconciliation of Geographic Revenues to Revenues by Operating Segment Based on Domicile of Company's Customers (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | $588,074 | $468,059 | $1,531,513 | $1,391,872 | ||||
North America Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 248,600 | 233,000 | 728,900 | 703,000 | ||||
International Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 99,700 | 101,800 | 292,400 | 303,900 | ||||
Merchant Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 136,100 | 133,300 | 406,500 | 385,000 | ||||
NetSpend | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 103,700 | ' | 103,700 | ' | ||||
United States | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 417,600 | 305,700 | 1,035,700 | 915,000 | ||||
United States | North America Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 178,000 | 172,600 | 526,000 | 530,500 | ||||
United States | Merchant Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 135,800 | 133,100 | 406,000 | 384,500 | ||||
United States | NetSpend | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 103,700 | ' | 103,700 | ' | ||||
Europe | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 72,000 | [1] | 71,100 | [1] | 213,100 | [1] | 217,900 | [1] |
Europe | North America Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 200 | [1] | 200 | [1] | 600 | [1] | 500 | [1] |
Europe | International Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 71,800 | [1] | 70,900 | [1] | 212,500 | [1] | 217,400 | [1] |
Canada | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 61,800 | 55,000 | 179,600 | 156,800 | ||||
Canada | North America Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 61,800 | 54,900 | 179,500 | 156,700 | ||||
Canada | Merchant Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 100 | 100 | 100 | 100 | ||||
Japan | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 17,700 | [1] | 21,100 | [1] | 50,900 | [1] | 59,000 | [1] |
Japan | International Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 17,700 | [1] | 21,100 | [1] | 50,900 | [1] | 59,000 | [1] |
Mexico | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 4,600 | 2,900 | 12,900 | 7,900 | ||||
Mexico | North America Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 4,600 | 2,900 | 12,800 | 7,900 | ||||
Other | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 14,400 | [1] | 12,300 | [1] | 39,300 | [1] | 35,300 | [1] |
Other | North America Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 4,000 | [1] | 2,400 | [1] | 10,000 | [1] | 7,400 | [1] |
Other | International Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 10,200 | [1] | 9,800 | [1] | 29,000 | [1] | 27,500 | [1] |
Other | Merchant Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenues | $200 | [1] | $100 | [1] | $400 | [1] | $400 | [1] |
[1] | Revenues are impacted by movements in foreign currency exchange rates. |
Property_and_Equipment_Net_of_
Property and Equipment, Net of Accumulated Depreciation and Amortization, by Geographic Areas (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net of accumulated depreciation and amortization | $259,865 | $260,389 | ||
United States | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net of accumulated depreciation and amortization | 200,600 | 191,700 | ||
Europe | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net of accumulated depreciation and amortization | 46,700 | [1] | 51,300 | [1] |
Japan | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net of accumulated depreciation and amortization | 6,200 | [1] | 9,500 | [1] |
Other | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net of accumulated depreciation and amortization | $6,400 | [1] | $7,900 | [1] |
[1] | Total assets are impacted by movements in foreign currency exchange rates. |
Supplementary_Cash_Flow_Inform1
Supplementary Cash Flow Information - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Cash Flow, Supplemental [Line Items] | ' | ' |
Equipment and software acquired under capital lease obligations | $12.90 | $5.10 |
Commitments_And_Contingencies_
Commitments And Contingencies - Additional Information (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Commitment And Contingencies [Line Items] | ' |
Liability for uncertain tax positions | $2.50 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 01, 2013 | Sep. 30, 2013 | Jul. 01, 2013 | Jul. 01, 2013 | Jul. 01, 2013 | Jul. 01, 2013 | Jul. 01, 2013 | Jul. 01, 2013 | Jul. 01, 2013 |
Share data in Millions, except Per Share data, unless otherwise specified | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | NetSpend Holdings Inc | ||
Minimum | Maximum | Prior To Acquisition Date | Shareholders | Holders of Stock Options and Awards | Repayment of Revolving Credit Facility | Replacement Stock Options and Awards | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition percent of acquisition | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, cost of acquired entity, purchase price | ' | ' | $1,396,550,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, cash paid | ' | ' | 1,355,270,000 | ' | ' | ' | ' | 1,200,000,000 | 70,700,000 | 58,300,000 | ' |
Replacement stock options and awards | ' | ' | ' | ' | ' | ' | 11,100,000 | ' | ' | ' | 15,600,000 |
Share price per share | ' | ' | $16 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares held by dissenting shareholders | ' | ' | 1.6 | ' | ' | ' | ' | ' | ' | ' | ' |
Value of shares held by dissenting shareholders | ' | ' | 25,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shareholders | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' |
Replacement stock options and awards fair value | ' | ' | 37,400,000 | ' | ' | ' | 15,600,000 | ' | ' | ' | ' |
Goodwill | 1,545,784,000 | 518,344,000 | 1,027,478,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets estimated useful life | ' | ' | ' | ' | '5 years | '8 years | ' | ' | ' | ' | ' |
Identifiable intangible assets | ' | ' | 480,075,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Assumption used in fair value, measurement, discount rate | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' |
Assumption used in fair value measurement, royalty rate low range | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' |
Assumption used in fair value measurement, royalty rate high range | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' |
Assumption used in fair value measurement,, attrition rate low range | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' |
Assumption used in fair value measurement, attrition rate high range | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' |
Assumption used in fair value, measurement, effective tax rate | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' |
Assumption used in fair value, measurement, long-term sustainable growth rate | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, transaction costs | ' | ' | ' | $12,000,000 | ' | ' | ' | ' | ' | ' | ' |
Awards_and_Estimated_Fair_Valu
Awards and Estimated Fair Value of Awards Issued in Acquisition of Net Spend (Detail) (NetSpend Holdings Inc, USD $) | 1 Months Ended |
In Millions, except Share data, unless otherwise specified | Jul. 01, 2013 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ' |
Number of Shares, Options and Units Issued | 2,017,865 |
Fair Value | $37.40 |
Non-Qualified Stock Options | ' |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ' |
Number of Shares, Options and Units Issued | 530,696 |
Fair Value | 8.4 |
Incentive Stock Options | ' |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ' |
Number of Shares, Options and Units Issued | 529,452 |
Fair Value | 5.3 |
Time Based Restricted Stock | ' |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ' |
Number of Shares, Options and Units Issued | 870,361 |
Fair Value | 21.5 |
Performance Based Restricted Stock | ' |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ' |
Number of Shares, Options and Units Issued | 87,356 |
Fair Value | $2.20 |
Amounts_of_Assets_Acquired_and
Amounts of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 01, 2013 |
In Thousands, unless otherwise specified | NetSpend Holdings Inc | ||
Consideration | ' | ' | ' |
Cash | ' | ' | $1,355,270 |
Equity instruments | ' | ' | 15,557 |
Dissenting shareholder liability | ' | ' | 25,723 |
Fair value of total consideration transferred | ' | ' | 1,396,550 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | ' | ' | ' |
Cash | ' | ' | 40,611 |
Accounts receivable, net | ' | ' | 11,335 |
Property equipment and software | ' | ' | 11,657 |
Identifiable intangible assets | ' | ' | 480,075 |
Deferred tax asset | ' | ' | 10,165 |
Other assets | ' | ' | 33,626 |
Deferred tax liability | ' | ' | -155,945 |
Financial liabilities | ' | ' | -62,452 |
Total identifiable net assets | ' | ' | 369,072 |
Goodwill | 1,545,784 | 518,344 | 1,027,478 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total | ' | ' | $1,396,550 |
Amounts_of_Assets_Acquired_and1
Amounts of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) (NetSpend Holdings Inc) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
NetSpend Holdings Inc | ' |
Business Acquisition [Line Items] | ' |
Dissenting shareholder, shares | 1.6 |
Estimated_Fair_Value_of_Identi
Estimated Fair Value of Identifiable Intangible Assets Acquired (Detail) (NetSpend Holdings Inc, USD $) | 1 Months Ended |
In Thousands, unless otherwise specified | Jul. 01, 2013 |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | ' |
Acquired identifiable intangible assets, fair value | $480,075 |
Acquired intangible assets,weighted average useful lives | '7 years 3 months 18 days |
Channel relationships | ' |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | ' |
Acquired identifiable intangible assets, fair value | 317,900 |
Acquired intangible assets,weighted average useful lives | '8 years |
Covenants-Not-to-Compete | ' |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | ' |
Acquired identifiable intangible assets, fair value | 11,500 |
Acquired intangible assets,weighted average useful lives | '6 years |
Current Technology | ' |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | ' |
Acquired identifiable intangible assets, fair value | 78,700 |
Acquired intangible assets,weighted average useful lives | '7 years |
Database | ' |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | ' |
Acquired identifiable intangible assets, fair value | 28,000 |
Acquired intangible assets,weighted average useful lives | '5 years |
Trade Name | ' |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | ' |
Acquired identifiable intangible assets, fair value | $44,000 |
Acquired intangible assets,weighted average useful lives | '5 years |
Pro_Forma_Revenue_and_Earnings
Pro Forma Revenue and Earnings (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Business Acquisition, Pro Forma Information [Line Items] | ' | ' | ' | ' |
Revenue | $588,074 | $468,059 | $1,531,513 | $1,391,872 |
Net income attributable to TSYS common shareholders | 64,350 | 60,312 | 179,095 | 183,418 |
Basic EPS attributable to TSYS common shareholders | $0.34 | $0.32 | $0.95 | $0.97 |
Diluted EPS attributable to TSYS common shareholders | $0.34 | $0.32 | $0.94 | $0.97 |
NetSpend Holdings Inc | ' | ' | ' | ' |
Business Acquisition, Pro Forma Information [Line Items] | ' | ' | ' | ' |
Revenue | 588,074 | 468,059 | 1,531,513 | 1,391,872 |
Net income attributable to TSYS common shareholders | 64,350 | 60,312 | 179,095 | 183,418 |
Basic EPS attributable to TSYS common shareholders | $0.34 | $0.32 | $0.95 | $0.97 |
Diluted EPS attributable to TSYS common shareholders | $0.34 | $0.32 | $0.94 | $0.97 |
Revenue | 588,074 | 552,952 | 1,753,556 | 1,653,257 |
Net income attributable to TSYS common shareholders | $68,935 | $47,085 | $182,668 | $139,951 |
Basic EPS attributable to TSYS common shareholders | $0.37 | $0.25 | $0.97 | $0.74 |
Diluted EPS attributable to TSYS common shareholders | $0.36 | $0.25 | $0.95 | $0.73 |
Basic_and_Diluted_Earnings_Per
Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic EPS: | ' | ' | ' | ' |
Net income attributable to TSYS common shareholders | $64,350 | $60,312 | $179,095 | $183,418 |
Basic EPS (a)/(b) | $0.34 | $0.32 | $0.95 | $0.97 |
Diluted EPS: | ' | ' | ' | ' |
Net income attributable to TSYS common shareholders | 64,350 | 60,312 | 179,095 | 183,418 |
Diluted EPS (c)/(d) | $0.34 | $0.32 | $0.94 | $0.97 |
Common Stock | ' | ' | ' | ' |
Basic EPS: | ' | ' | ' | ' |
Net income attributable to TSYS common shareholders | 64,350 | 60,312 | 179,095 | 183,418 |
Less income allocated to nonvested awards | -605 | -191 | -968 | -613 |
Net income allocated to common stock for EPS calculation (a) | 63,745 | 60,121 | 178,127 | 182,805 |
Average common shares outstanding (b) | 187,726 | 187,269 | 187,001 | 187,911 |
Basic EPS (a)/(b) | $0.34 | $0.32 | $0.95 | $0.97 |
Diluted EPS: | ' | ' | ' | ' |
Net income attributable to TSYS common shareholders | 64,350 | 60,312 | 179,095 | 183,418 |
Less income allocated to nonvested awards | -601 | -191 | -962 | -611 |
Net income allocated to common stock for EPS calculation (c) | 63,749 | 60,121 | 178,133 | 182,807 |
Average common shares outstanding | 187,726 | 187,269 | 187,001 | 187,911 |
Increase due to assumed issuance of shares related to common equivalent shares outstanding | 1,758 | 1,218 | 1,565 | 1,138 |
Average common and common equivalent shares outstanding (d) | 189,484 | 188,487 | 188,566 | 189,049 |
Diluted EPS (c)/(d) | $0.34 | $0.32 | $0.94 | $0.97 |
Participating Securities | ' | ' | ' | ' |
Basic EPS: | ' | ' | ' | ' |
Less income allocated to nonvested awards | 605 | 191 | 968 | 613 |
Net income allocated to common stock for EPS calculation (a) | 605 | 191 | 968 | 613 |
Average common shares outstanding (b) | 1,799 | 609 | 1,034 | 642 |
Basic EPS (a)/(b) | $0.34 | $0.31 | $0.94 | $0.96 |
Diluted EPS: | ' | ' | ' | ' |
Less income allocated to nonvested awards | 601 | 191 | 962 | 611 |
Net income allocated to common stock for EPS calculation (c) | $601 | $191 | $962 | $611 |
Average common shares outstanding | 1,799 | 609 | 1,034 | 642 |
Average common and common equivalent shares outstanding (d) | 1,799 | 609 | 1,034 | 642 |
Diluted EPS (c)/(d) | $0.33 | $0.31 | $0.93 | $0.95 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Convertible stock options and nonvested awards excluded from diluted EPS calculation | 3 | 2.9 | 1.8 | 2.9 |