Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | TOTAL SYSTEM SERVICES INC | ||
Entity Central Index Key | 721,683 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 183,354,641 | ||
Entity Public Float | $ 9,575,381,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents (Note 4) | $ 425,354 | $ 389,328 |
Accounts receivable, net of allowances for doubtful accounts and billing adjustments of $4.8 million and $4.0 million as of 2016 and 2015, respectively | 432,847 | 314,705 |
Prepaid expenses and other current assets (Note 5) | 164,488 | 154,199 |
Total current assets | 1,022,689 | 858,232 |
Goodwill (Note 6) | 3,270,952 | 1,545,424 |
Other intangible assets, net of accumulated amortization of $420.6 million and $257.1 million as of 2016 and 2015, respectively (Note 7) | 906,676 | 328,320 |
Computer software, net of accumulated amortization of $757.4 million and $680.6 million as of 2016 and 2015, respectively (Note 8) | 423,188 | 405,070 |
Property and equipment, net of accumulated depreciation and amortization of $480.7 million and $457.3 million as of 2016 and 2015, respectively (Note 9) | 282,345 | 289,898 |
Contract acquisition costs, net of accumulated amortization of $309.7 million and $287.9 million as of 2016 and 2015, respectively (Note 10) | 235,700 | 247,811 |
Equity investments, net (Note 11) | 110,793 | 106,118 |
Deferred income tax assets (Note 14) | 7,055 | 6,242 |
Other assets | 106,779 | 90,780 |
Total assets | 6,366,177 | 3,877,895 |
Current liabilities: | ||
Accrued salaries and employee benefits | 67,655 | 66,594 |
Current portion of long-term borrowings (Note 12) | 48,040 | 50,078 |
Accounts payable | 38,712 | 52,213 |
Current portion of obligations under capital leases (Note 12) | 2,687 | 3,468 |
Other current liabilities (Note 13) | 263,259 | 166,579 |
Total current liabilities | 420,353 | 338,932 |
Long-term borrowings, excluding current portion (Note 12) | 3,312,215 | 1,373,878 |
Deferred income tax liabilities (Note 14) | 419,552 | 192,444 |
Obligations under capital leases, excluding current portion (Note 12) | 1,061 | 3,663 |
Other long-term liabilities | 88,983 | 96,886 |
Total liabilities | 4,242,164 | 2,005,803 |
Redeemable noncontrolling interest in consolidated subsidiary | 24,093 | 23,410 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity: (Notes 17, 18, 19 and 20) | ||
Common stock - $0.10 par value. Authorized 600,000 shares; 202,765 and 202,769 issued as of 2016 and 2015 respectively; 183,451 and 182,781 outstanding as of 2016 and 2015, respectively | 20,276 | 20,277 |
Additional paid-in capital | 279,627 | 241,891 |
Accumulated other comprehensive loss, net (Note 20) | (56,158) | (33,544) |
Treasury stock, at cost (19,314 and 19,988 shares as of 2016 and 2015, respectively) | (646,047) | (641,664) |
Retained earnings | 2,502,222 | 2,256,058 |
Total shareholders' equity | 2,099,920 | 1,843,018 |
Noncontrolling interest in consolidated subsidiary | 5,664 | |
Total equity | 2,099,920 | 1,848,682 |
Total liabilities and equity | $ 6,366,177 | $ 3,877,895 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable, allowances for doubtful accounts, billing adjustments and merchant losses | $ 4,800 | $ 4,000 |
Computer software, accumulated amortization | 757,394 | 680,582 |
Intangible assets, accumulated amortization | 420,607 | 257,096 |
Property and equipment, accumulated depreciation and amortization | $ 480,690 | $ 457,328 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 600,000 | 600,000 |
Common stock, issued | 202,765 | 202,769 |
Common stock, outstanding | 183,451 | 182,781 |
Treasury stock, shares | 19,314 | 19,988 |
Contract Acquisition Costs | ||
Intangible assets, accumulated amortization | $ 309,700 | $ 287,900 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Income | |||
Total revenues (Note 21) | $ 4,170,077 | $ 2,779,541 | $ 2,446,877 |
Cost of services | 2,993,062 | 1,855,181 | 1,668,892 |
Selling, general and administrative expenses | 603,633 | 390,253 | 346,345 |
Total operating expenses | 3,596,695 | 2,245,434 | 2,015,237 |
Operating income | 573,382 | 534,107 | 431,640 |
Nonoperating expenses, net | (112,168) | (37,219) | (38,711) |
Income before income taxes and equity in income of equity investments | 461,214 | 496,888 | 392,929 |
Income taxes (Note 14) | 161,175 | 151,364 | 129,761 |
Income before equity in income of equity investments | 300,039 | 345,524 | 263,168 |
Equity in income of equity investments, net of tax (Note 11) | 25,933 | 22,106 | 17,583 |
Income from continuing operations, net of tax | 325,972 | 367,630 | 280,751 |
Income from discontinued operations, net of tax | 1,411 | 48,655 | |
Net income | 325,972 | 369,041 | 329,406 |
Net income attributable to noncontrolling interests | (6,334) | (4,997) | (6,534) |
Net income attributable to Total System Services, Inc. (TSYS) common shareholders | $ 319,638 | $ 364,044 | $ 322,872 |
Basic EPS: | |||
Income from continuing operations to TSYS common shareholders | $ 1.74 | $ 1.97 | $ 1.48 |
Gain from discontinued operations to TSYS common shareholders | 0.01 | 0.26 | |
Net income attributable to TSYS common shareholders | 1.74 | 1.98 | 1.73 |
Diluted EPS: | |||
Income from continuing operations to TSYS common shareholders | 1.73 | 1.96 | 1.47 |
Gain from discontinued operations to TSYS common shareholders | 0.01 | 0.25 | |
Net income attributable to TSYS common shareholders | $ 1.73 | $ 1.97 | $ 1.72 |
Amounts attributable to TSYS common shareholders: | |||
Income from continuing operations | $ 319,638 | $ 362,633 | $ 275,216 |
Gain from discontinued operations | 1,411 | 47,656 | |
Net income | $ 319,638 | $ 364,044 | $ 322,872 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 325,972 | $ 369,041 | $ 329,406 |
Other comprehensive income (loss), net of tax: | |||
Litigation, claims, judgments or settlements | (30,801) | (21,719) | (19,531) |
Less reclassifications of foreign currency translation adjustments to net income | 3,514 | ||
Total foreign currency translation adjustments | (30,801) | (21,719) | (16,017) |
Postretirement healthcare plan adjustments | 496 | (1,567) | 589 |
Unrealized gain (loss) on available-for-sale securities | 7,359 | 1,398 | (668) |
Other comprehensive loss | (22,946) | (21,888) | (16,096) |
Comprehensive income | 303,026 | 347,153 | 313,310 |
Comprehensive income attributable to noncontrolling interests | (6,002) | (4,727) | (6,113) |
Comprehensive income attributable to TSYS common shareholders | $ 297,024 | $ 342,426 | $ 307,197 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 325,972 | $ 369,041 | $ 329,406 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 373,546 | 258,264 | 248,018 |
Provisions for cardholder losses | 49,362 | 41,264 | 38,381 |
Share-based compensation | 43,728 | 41,549 | 30,790 |
Dividends received from equity investments | 15,246 | 12,097 | 9,189 |
Amortization of debt issuance costs | 13,570 | 1,841 | 1,817 |
Provisions for bad debt expenses, billing adjustments and merchant losses | 7,584 | 4,495 | 2,823 |
Deferred income tax (benefit) expense | 7,435 | (4,083) | (8,963) |
Charges for transaction processing provisions | 5,351 | 6,976 | 9,468 |
Loss (gain) on disposal of equipment, net | 774 | (397) | (293) |
Amortization of bond discount | 750 | 397 | 383 |
Gain on disposal of subsidiaries | (3,568) | (86,961) | |
Changes in value of private equity investments | (811) | (4,038) | (793) |
(Gain) loss on foreign currency | (1,748) | 388 | 999 |
Excess tax benefit from share-based payment arrangements | (9,905) | (24,357) | (7,185) |
Equity in income of equity investments | (25,933) | (22,106) | (17,583) |
Changes in operating assets and liabilities, net of effect of acquisition: | |||
Accounts receivable | (73,235) | (39,218) | (33,406) |
Prepaid expenses, other current assets and other long-term assets | (57,835) | (8,498) | (10,525) |
Accounts payable | (12,562) | (3,987) | 8,765 |
Accrued salaries and employee benefits | (2,597) | 29,168 | 414 |
Other current liabilities and other long-term liabilities | 59,217 | (55,034) | 45,457 |
Net cash provided by operating activities | 717,909 | 600,194 | 560,201 |
Cash flows from investing activities: | |||
Cash used in acquisitions, net of cash acquired | (2,345,493) | (750) | (38,584) |
Purchases of property and equipment | (51,132) | (54,640) | (75,913) |
Additions to contract acquisition costs | (45,847) | (58,728) | (88,871) |
Additions to internally developed computer software | (34,043) | (39,219) | (41,501) |
Additions to licensed computer software from vendors | (11,551) | (50,729) | (29,638) |
Purchase of private equity investments | (4,930) | (3,525) | (3,291) |
Proceeds from insurance recovery for loss on disposal | 6,212 | ||
Proceeds from dispositions, net of expenses paid and cash disposed | 3,568 | 44,979 | |
Proceeds from sale of private equity investment | 120 | 1,839 | |
Net cash used in investing activities | (2,492,876) | (202,184) | (226,607) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 2,666,295 | 1,912 | 1,396 |
Proceeds from exercise of stock options | 11,708 | 58,636 | 34,869 |
Excess tax benefit from share-based payment arrangements | 9,905 | 24,357 | 7,185 |
Subsidiary dividends paid to noncontrolling shareholders | (5,548) | (5,028) | (7,172) |
Purchase of noncontrolling interest | (5,878) | (37,500) | |
Debt issuance costs | (26,555) | ||
Repurchase of common stock under plans and tax withholding | (30,275) | (242,235) | (170,516) |
Dividends paid on common stock | (73,378) | (73,677) | (74,796) |
Principal payments on long-term borrowings and capital lease obligations | (724,084) | (54,719) | (69,939) |
Net cash provided by (used in) financing activities | 1,822,190 | (290,754) | (316,473) |
Cash and cash equivalents: | |||
Effect of exchange rate changes on cash and cash equivalents | (11,197) | (7,111) | (6,168) |
Net increase in cash and cash equivalents | 36,026 | 100,145 | 10,953 |
Cash and cash equivalents at beginning of period | 389,328 | 289,183 | 278,230 |
Cash and cash equivalents at end of period | 425,354 | 389,328 | 289,183 |
Supplemental cash flow information: | |||
Interest paid | 84,420 | 40,425 | 40,969 |
Income taxes paid, net | $ 87,428 | $ 171,455 | $ 135,770 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Redeemable Noncontrolling Interests | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) (OCI) | Treasury Stock | Retained Earnings | Noncontrolling Interest | Total |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2013 | $ 39,652 | $ 20,279 | $ 165,841 | $ 3,749 | $ (326,996) | $ 1,718,204 | $ 21,349 | $ 1,602,426 |
Beginning Balance (in shares) at Dec. 31, 2013 | 202,790 | |||||||
Net income | 4,650 | 322,872 | 1,884 | 324,756 | ||||
Other comprehensive income (Note 20) | (15,675) | (421) | (16,096) | |||||
Common stock issued from treasury shares for exercise of stock options (Note 18) | 1,955 | 32,914 | 34,869 | |||||
Common stock unissued due to forfeiture of nonvested awards | $ (1) | 1 | ||||||
Common stock unissued due to forfeiture of nonvested awards (in shares) | (15) | |||||||
Common stock issued from treasury shares for nonvested awards (Note 18) | (11,142) | 11,142 | ||||||
Share-based compensation (Note 18) | 30,312 | 30,312 | ||||||
Common stock issued from treasury shares for dividend equivalents (Note 18) | 185 | 226 | 411 | |||||
Cash dividends declared ($0.40 per share) | (74,706) | (74,706) | ||||||
Purchase of treasury shares (Note 19) | (170,516) | (170,516) | ||||||
Subsidiary repurchase of noncontrolling interests | 15,078 | 22,422 | 22,422 | |||||
Subsidiary dividends paid to noncontrolling interests | (6,732) | (440) | (440) | |||||
Disposition of noncontrolling interest (Note 2) | (15,490) | (15,490) | ||||||
Tax benefits associated with share-based compensation | 6,540 | 6,540 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2014 | 22,492 | $ 20,278 | 171,270 | (11,926) | (453,230) | 1,966,370 | 6,882 | 1,699,644 |
Ending Balance (in shares) at Dec. 31, 2014 | 202,775 | |||||||
Net income | 5,945 | 364,044 | (948) | 363,096 | ||||
Other comprehensive income (Note 20) | (21,618) | (270) | (21,888) | |||||
Common stock issued from treasury shares for exercise of stock options (Note 18) | 12,273 | 46,363 | 58,636 | |||||
Common stock unissued due to forfeiture of nonvested awards | $ (1) | 702 | (701) | |||||
Common stock unissued due to forfeiture of nonvested awards (in shares) | (6) | |||||||
Common stock issued from treasury shares for nonvested awards (Note 18) | (7,982) | 7,982 | ||||||
Share-based compensation (Note 18) | 41,179 | 41,179 | ||||||
Common stock issued from treasury shares for dividend equivalents (Note 18) | 186 | 163 | 349 | |||||
Cash dividends declared ($0.40 per share) | (74,356) | (74,356) | ||||||
Purchase of treasury shares (Note 19) | 6 | (242,241) | (242,235) | |||||
Subsidiary dividends paid to noncontrolling interests | (5,027) | |||||||
Tax benefits associated with share-based compensation | 24,257 | 24,257 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2015 | 23,410 | $ 20,277 | 241,891 | (33,544) | (641,664) | 2,256,058 | 5,664 | 1,848,682 |
Ending Balance (in shares) at Dec. 31, 2015 | 202,769 | |||||||
Net income | 6,231 | 319,638 | 103 | 319,741 | ||||
Other comprehensive income (Note 20) | (22,614) | (332) | (22,946) | |||||
Common stock issued from treasury shares for exercise of stock options (Note 18) | 1,824 | 9,884 | 11,708 | |||||
Common stock unissued due to forfeiture of nonvested awards | $ (1) | 1,197 | (1,196) | |||||
Common stock unissued due to forfeiture of nonvested awards (in shares) | (4) | |||||||
Common stock issued from treasury shares for nonvested awards (Note 18) | (17,204) | 17,204 | ||||||
Share-based compensation (Note 18) | 42,457 | 42,457 | ||||||
Cash dividends declared ($0.40 per share) | (73,474) | (73,474) | ||||||
Purchase of treasury shares (Note 19) | (30,275) | (30,275) | ||||||
Subsidiary repurchase of noncontrolling interests | 443 | $ 5,435 | 5,878 | |||||
Subsidiary dividends paid to noncontrolling interests | (5,548) | |||||||
Tax benefits associated with share-based compensation | 9,905 | 9,905 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2016 | $ 24,093 | $ 20,276 | $ 279,627 | $ (56,158) | $ (646,047) | $ 2,502,222 | $ 2,099,920 | |
Ending Balance (in shares) at Dec. 31, 2016 | 202,765 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Changes in Equity | |||
Cash dividends declared, per share | $ 0.40 | $ 0.40 | $ 0.40 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 1: Basis of Presentation and 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 payment 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 and other consumers. The Company’s services are provided through four 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 and nonfinancial 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 Latin America. The Company’s Merchant Services segment provides merchant services to merchant acquirers and merchants mainly in the United States. The Company’s Netspend segment provides services to consumers in the United States. PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION: The accompanying consolidated financial statements, which are prepared in accordance with generally accepted accounting principles (GAAP) include the accounts of TSYS and its wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements. RISKS AND UNCERTAINTIES AND USE OF ESTIMATES: Factors that could affect the Company's future operating results and cause actual results to vary materially from expectations include, but are not limited to, lower than anticipated growth from existing clients, an inability to attract new clients and grow internationally, loss of a major customer or other significant client, loss of a major supplier, an inability to grow through acquisitions or successfully integrate acquisitions, an inability to control expenses, technology changes, the impact of the application of and/or changes in accounting principles, financial services consolidation, changes in regulatory requirements, a decline in the use of cards as a payment mechanism, disruption of the Company's international operations, breach of the Company's security systems, a decline in the financial stability of the Company's clients and uncertain economic conditions. Negative developments in these or other risk factors could have a material adverse effect on the Company's financial position, results of operations and cash flows. The Company has prepared the accompanying consolidated financial statements in conformity with U.S. GAAP. The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates and assumptions are developed based upon all information available. Actual results could differ from estimated amounts. ACQUISITIONS — PURCHASE PRICE ALLOCATION: TSYS' purchase price allocation methodology requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities. TSYS estimates the fair value of assets and liabilities based upon appraised market values, the carrying value of the acquired assets and widely accepted valuation techniques, including the cost approach, discounted cash flows and market multiple analyses. Management determines the fair value of fixed assets and identifiable intangible assets such as developed technology or customer relationships, and any other significant assets or liabilities. TSYS adjusts the purchase price allocation, as necessary, up to one year after the acquisition closing date as TSYS obtains more information regarding asset valuations and liabilities assumed. Unanticipated events or circumstances may occur which could affect the accuracy of the Company's fair value estimates, including assumptions regarding industry economic factors and business strategies, and may result in an impairment or a new allocation of purchase price. TSYS may allocate part of the purchase price of future acquisitions to contingent consideration as required by GAAP for business combinations. The fair value calculation of contingent consideration will involve a number of assumptions that are subjective in nature and which may differ significantly from actual results. TSYS may experience volatility in its earnings to some degree in future reporting periods as a result of these fair value measurements. CASH AND CASH EQUIVALENTS: Cash on hand and investments with a maturity of three months or less when purchased are considered to be cash equivalents. ACCOUNTS RECEIVABLE: Accounts receivable balances are stated net of allowances for doubtful accounts and billing adjustments. TSYS records an allowance for doubtful accounts when it is probable that the accounts receivable balance will not be collected. When estimating the allowance for doubtful accounts, the Company takes into consideration such factors as its day-to-day knowledge of the financial position of specific clients, the industry and size of its clients, the overall composition of its accounts receivable aging, prior history with specific customers of accounts receivable write-offs and prior experience of allowances in proportion to the overall receivable balance. This analysis includes an ongoing and continuous communication with its largest clients and those clients with past due balances. A financial decline of any one of the Company's large clients could have a material adverse effect on collectability of receivables and thus the adequacy of the allowance for doubtful accounts. Increases in the allowance for doubtful accounts are recorded as charges to bad debt expense and are reflected in selling, general and administrative expenses in the Company's Consolidated Statements of Income. Write-offs of uncollectible accounts are charged against the allowance for doubtful accounts. TSYS records an allowance for billing adjustments for actual and potential billing discrepancies. When estimating the allowance for billing adjustments, the Company considers its overall history of billing adjustments, as well as its history with specific clients and known disputes. Increases in the allowance for billing adjustments are recorded as a reduction of revenues in the Company's Consolidated Statements of Income and actual adjustments to invoices are charged against the allowance for billing adjustments. UP-FRONT DISTRIBUTOR PAYMENTS: The Company makes up-front contractual payments to third-party distribution partners. The Company assesses each up-front payment to determine whether it meets the criteria of an asset as defined by U.S. GAAP. If these criteria are met, the Company capitalizes the up-front payment and recognizes the capitalized amount as expense ratably over the benefit period, which is generally the contract period. If the contract requires the distributor to perform specific acts (i.e., achieve a sales goal) and no other conditions exist for the distributor to earn or retain the up-front payment, then the Company capitalizes the payment and recognizes it as an expense when the performance conditions have been met. Up-front distributor payments are classified on the Consolidated Balance Sheet as other non-current assets and recorded as a cost of services in the Consolidated Statements of Income. PROPERTY AND EQUIPMENT: Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over estimated useful lives of 5-40 years, computer and other equipment over estimated useful lives of 2-5 years, and furniture and other equipment over estimated useful lives of 3-15 years. The Company evaluates impairment losses on long-lived assets used in operations in accordance with the provisions of GAAP. All ordinary repairs and maintenance costs are expensed as incurred. Maintenance costs that extend the asset life are capitalized and amortized over the remaining estimated life of the asset. LICENSED COMPUTER SOFTWARE: The Company licenses software that is used in providing services to clients. Licensed software is obtained through perpetual licenses, term licenses, site licenses and through agreements based on processing capacity. Perpetual and site licenses are amortized using the straight-line method over their estimated useful lives which range from three to ten years. Term licenses are amortized over the term of the agreement. Mainframe software that is licensed based on processing capacity is amortized using a units-of-production basis over the estimated useful life of the software, generally not to exceed ten years. At each balance sheet date, the Company evaluates impairment losses on long-lived assets used in operations in accordance with GAAP. ACQUISITION TECHNOLOGY INTANGIBLES: These identifiable intangible assets are software technology assets resulting from acquisitions. These assets are amortized using the straight-line method over periods not exceeding their estimated useful lives, which range from five to nine years. GAAP requires that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment. Acquisition technology intangibles’ net book values are included in computer software, net in the accompanying balance sheets. Amortization expenses are charged to cost of services in the Company's Consolidated Statements of Income. SOFTWARE DEVELOPMENT COSTS: Software development costs are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. In evaluating software development costs for recoverability, expected cash flows are estimated by management should events indicate a loss may have been triggered. The Company evaluates the unamortized capitalized costs of software development, the impairment of which is determined by expected undiscounted future operating cash flows of the software as compared to the carrying amount of the software product. The amount by which the unamortized software development costs exceed the lower of the carrying amount or fair value is written off in the period that such determination is made. If the actual cash flows are not consistent with the Company's estimates, a material write-off may result and net income may be materially different than was initially recorded. Assumptions and estimates about future cash flows and remaining useful lives of software are complex and subjective. They can be affected by a variety of factors, including industry and economic trends, changes in the Company’s business strategy and changes in the internal forecasts. The amount by which the unamortized software development costs exceed the net realizable value is written off in the period that such determination is made. Software development costs are amortized using the straight-line method over its estimated useful life, which ranges from three to ten years. The Company also develops software that is used internally. These software development costs are capitalized in accordance with GAAP. Internal-use software development costs are capitalized once: (1) the preliminary project stage is completed, (2) management authorizes and commits to funding a computer software project, and (3) it is probable that the project will be completed and the software will be used to perform the function intended. Costs incurred prior to meeting the qualifications are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. Internal-use software development costs are amortized using the straight-line method over its estimated useful life which ranges from three to ten years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of the planned project becoming doubtful or due to technological obsolescence of the planned software product. CONTRACT ACQUISITION COSTS: The Company capitalizes contract acquisition costs related to signing or renewing long-term contracts and costs related to cash payments for rights to provide processing services. The Company capitalizes internal conversion costs in accordance with GAAP. All costs incurred prior to a signed agreement are expensed as incurred. Contract acquisition costs are amortized using the straight-line method over the expected customer relationship (contract term) beginning when the client's cardholder accounts are converted and producing revenues. The amortization of contract acquisition costs associated with cash payments for client incentives is included as a reduction of revenues in the Company's Consolidated Statements of Income. The amortization of contract acquisition costs associated with conversion activity is recorded as cost of services in the Company's Consolidated Statements of Income. In evaluating contract acquisition costs for recoverability, expected cash flows are estimated by management should events indicate a loss may have been triggered. The Company evaluates the carrying value of contract acquisition costs associated with each customer for impairment on the basis of whether these costs are fully recoverable from either contractual minimum fees (conversion costs) or from expected undiscounted net operating cash flows of the related contract (cash incentives paid). The determination of expected undiscounted net operating cash flows requires management to make estimates. If the actual cash flows are not consistent with the Company's estimates, a material impairment charge may result and net income may be materially different than was initially recorded. These costs may become impaired with the loss of a contract, the financial decline of a client, termination of conversion efforts after a contract is signed, diminished prospects for current clients or if the Company's actual results differ from its estimates of future cash flows. The amount of the impairment is written off in the period that such a determination is made. EQUITY METHOD INVESTMENTS: TSYS' 49% investment in Total System Services de México, S.A. de C.V. (TSYS de México), an electronic payment processing support operation located in Toluca, México, is accounted for using the equity method of accounting, as is TSYS' 44.56% investment in China UnionPay Data Co., Ltd. (CUP Data) headquartered in Shanghai, China. TSYS' equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments. GOODWILL: Goodwill results from the excess of cost over the fair value of net assets of businesses acquired. Goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values. Equity investment goodwill, which is not reported as goodwill in the Company's Consolidated Balance Sheet, but is reported as a component of the equity investment, was $46.1 million as of December 31, 2016. OTHER INTANGIBLE ASSETS: Identifiable intangible assets relate primarily to customer relationships, databases, channel relationships, covenants-not-to-compete, trade names and trade associations resulting from acquisitions. These identifiable intangible assets are amortized using the straight-line method over periods not exceeding the estimated useful lives, which range from three to ten years. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with GAAP. Amortization expenses are charged to selling, general and administrative expenses in the Company's Consolidated Statements of Income. FAIR VALUES OF FINANCIAL INSTRUMENTS: The Company uses financial instruments in the normal course of its business. The carrying values of cash equivalents, accounts receivable, accounts payable, accrued salaries and employee benefits, and other current liabilities approximate their fair value due to the short-term maturities of these assets and liabilities. The fair value of the Company's long-term debt and obligations under capital leases is not significantly different from its carrying value. Investments in equity method investments are accounted for using the equity method of accounting and pertain to privately held companies. The Company believes the fair values of its investments in equity method investments exceed their respective carrying values. IMPAIRMENT OF LONG-LIVED ASSETS: The Company reviews long-lived assets, such as property and equipment and intangibles subject to amortization, including contract acquisition costs and certain computer software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If upon a triggering event the Company determines that the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. TRANSACTION PROCESSING PROVISIONS: The Company has recorded an accrual for contract contingencies (performance penalties) and processing errors. A significant number of the Company's contracts with large clients contain service level agreements which can result in TSYS incurring performance penalties if contractually required service levels are not met. When providing for these accruals, the Company takes into consideration such factors as the prior history of performance penalties and processing errors incurred, actual contractual penalties inherent in the Company's contracts, progress towards milestones and known processing errors not covered by insurance. As of December 31, 2016, the Company had transaction processing provisions of $2.9 million. These accruals are included in other current liabilities in the accompanying Consolidated Balance Sheets. Increases and decreases in transaction processing provisions are charged to cost of services in the Company's Consolidated Statements of Income, and payments or credits for performance penalties and processing errors are charged against the accrual. PROVISION FOR CARDHOLDER LOSSES: 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 and services. These reserves are established based upon historical loss and recovery rates and cardholder activity for which specific losses can be identified. The provision for cardholder losses was approximately $10.5 million as of December 31, 2016. The charges to provisions for cardholder losses are included in cost of services in the Consolidated Statements of Income and other current liabilities in the Consolidated Balance Sheets. The Company regularly updates its reserve estimate as new facts become known and events occur that may impact the settlement or recovery of losses. PROVISION FOR MERCHANT LOSSES: The Company has potential liability for losses resulting from disputes between a cardholder and a merchant that arise as a result of, among other things, the cardholder's dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant's favor. In these cases, the transaction is "charged back" to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. If the merchant is unable to fund the refund, TSYS must do so. TSYS also bears the risk of reject losses arising from the fact that TSYS collects fees from its merchants after the monthly billing period. If the merchant has gone out of business during such period, TSYS may be unable to collect such fees. TSYS maintains cash deposits or requires the pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. Most chargeback and reject losses are charged to cost of services as they are incurred. However, the Company also maintains a provision against losses, including major fraud losses, which are both less predictable and involve larger amounts. The loss provision was established using historical loss rates, applied to recent bankcard processing volume. As of December 31, 2016, the Company had a merchant loss provision in the amount of $2.0 million. REDEEMABLE NONCONTROLLING INTEREST: In connection with the acquisition of Central Payment Co., LLC (CPAY), the Company is party to call and put arrangements with respect to the membership units that represent the remaining noncontrolling interest of CPAY. The call arrangement is exercisable by TSYS and the put arrangement is exercisable by the seller. The put arrangement is outside the control of the Company by requiring the Company to purchase the seller’s entire equity interest in CPAY at a put price at fair value. The put arrangement is recorded on the balance sheet and is classified as redeemable noncontrolling interest outside of permanent equity. FOREIGN CURRENCY TRANSLATION: The Company maintains several different foreign operations whose functional currency is their local currency. Foreign currency financial statements of the Company's Mexican and Chinese equity investments, the Company's wholly owned subsidiaries and the Company's majority owned subsidiaries, as well as the Company's division and branches in the United Kingdom and China, are translated into U.S. dollars at current exchange rates, except for revenues, costs and expenses, and net income which are translated at the average exchange rates for each reporting period. Net gains or losses resulting from the currency translation of assets and liabilities of the Company's foreign operations, net of tax when applicable, are accumulated in a separate section of shareholders' equity titled accumulated other comprehensive income (loss). Gains and losses on transactions denominated in currencies other than the functional currencies are included in determining net income for the period in which exchange rates change. TREASURY STOCK: The Company uses the cost method when it purchases its own common stock as treasury shares or issues treasury stock upon option exercises and displays treasury stock as a reduction of shareholders' equity. REVENUE RECOGNITION: Revenue is recognized when it is realized or realizable and earned, which is deemed to occur when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience. The Company's North America and International Services revenues are derived from long-term processing contracts with financial and nonfinancial institutions and are generally recognized as the services are performed. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements mailed, cards embossed and mailed and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual revenue minimums, penalties for early termination, and service level agreements which may impact contractual fees if certain service levels are not achieved. Revenue is recognized as the services are performed, primarily on a per unit basis. Processing contracts generally range from three to ten years in length. When providing payment processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, web-based services, and other payment processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract. The Company’s Merchant Services revenues are partially derived from relationships with thousands of individual merchants. Additionally, part of the revenues are derived from long-term processing contracts with large financial institutions, other merchant acquirers and merchant organizations which generally range from three to eight years and provide for penalties for early termination. Merchant services revenue is generated primarily from processing all payment forms including credit, debit and electronic benefits transfer for merchants of all sizes across a wide array of retail market segments. The products and services offered include authorization and capture of electronic transactions, clearing and settlement of electronic transactions, information reporting services related to electronic transactions, merchant billing services, and point-of-sale terminal services. Revenue is recognized for merchant services as those services are performed, primarily measured on a per unit basis. When providing merchant processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, terminal services, and other merchant processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract. Revenues on point-of-sale terminal equipment are recognized upon the transfer of ownership and shipment of product. With the acquisition of TransFirst Holdings Corp. (TransFirst) on April 1, 2016, TSYS included TransFirst’s results as part of the Merchant Services segment. TransFirst’s revenues are reported gross, which includes amounts paid for interchange and assessments, as TransFirst is the principal in the contractual relationship with its customers. Expenses covering interchange and assessment fees are included in TransFirst’s cost of services and are directly attributable to processing fee revenues and are recognized in the same period as the related revenue. When a sale involves multiple deliverables, revenue recognition is affected by the determination of the number of deliverables in an arrangement, whether those deliverables may be separated into multiple units of accounting, and the standalone selling price of each unit of accounting which affects the amount of revenue allocated to each unit. Pursuant to Accounting Standards Codification (ASC) 605, the Company uses vendor-specific objective evidence of the standalone selling price (VSOE) of its services when it exists to determine the amount of revenue to allocate to each unit of accounting. The Company establishes VSOE using the price charged when the same service is sold separately (on a standalone basis). In certain situations, the Company does not have sufficient VSOE. In these situations, TSYS considers whether sufficient third party evidence (TPE) of standalone selling price exists for the Company’s services. However, the Company typically is not able to determine TPE and has not used this measure of selling price due to the unique and proprietary nature of some of its services and the inability to reliably verify relevant standalone third party prices. When there is insufficient evidence of VSOE and TPE, the Company has made its best estimate of the standalone selling price (ESP) of that service for purposes of allocating revenue to each unit of accounting. When determining ESP, TSYS uses limited standalone sales data that do not meet the Company’s criteria to establish VSOE, management pricing strategies, residual selling price data when VSOE exists for a group of elements, the cost of providing the services and the related margin objectives. Consideration is also given to geographies in which the services are sold or delivered, customer classifications, and market conditions including competitor pricing strategies and benchmarking studies. Revenue is recognized when the revenue recognition criteria for each unit of accounting have been met. As business and service offerings change in the future, the determination of the number of deliverables in an arrangement and related units of accounting and the future pricing practices may result in changes in the estimates of VSOE and ESP, which may change the ratio of fees allocated to each service or unit of accounting in a given customer arrangement. There were no material changes or impact to revenue for current contractual arrangements during the years ended December 31, 2016, 2015 and 2014 due to any changes in the determination of the number of deliverables in an arrangement, units of accounting, or estimates of VSOE or ESP. In many situations, the Company enters into arrangements with customers to provide conversion or implementation services in addition to processing services where the conversion or implementation services do not have standalone value. For these arrangements, conversion or implementation services that do not have standalone value, are recognized over the expected customer relationship (contract term) as the related processing services are performed. The Company’s other services generally have standalone value and constitute separate units of accounting for revenue recognition purposes. Customer arrangements entered into prior to 2011 (prior to the adoption of Accounting Standards Update (ASU) 2009-13 “ Multiple-Deliverable Revenue Arrangements, ” an update to ASC Topic 605 “ Revenue Recognition, ” and formerly known as EITF 08-1, “ Revenue Arrangements with Multiple Deliverables ”) often included services for which sufficient objective |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note 2 Discontinued Operations In accordance with GAAP, the Company determined its Japan-based businesses became discontinued operations in 2014. The Company sold all of its stock of GP Network Corporation (GP Net) (representing 54% ownership of the company) and all of its stock of TSYS Japan Godo Kaisha (TSYS Japan) (representing 100% ownership of the company) in April 2014. Both entities were part of the International Services segment. The sale of the Company’s stock in both of its operations in Japan was the result of management’s decision in 2014, to divest non-strategic businesses and focus resources on core products and services. In 2014, the Company had a gain of $48.6 million, net of tax, related to the sales of its operations in Japan. In 2015, the Company recorded an additional gain of $1.4 million, net of tax, related to the return of cash in that was placed in escrow during closing and tax adjustments associated with the transaction. GP Net and TSYS Japan were not significant components of TSYS’ consolidated results. The following table presents the summarized results of discontinued operations for the years ended December 31, 2015 and 2014: (in thousands) 2015 2014 Total revenues $ - Income before taxes $ - Income tax benefit $ - Income from operating activities of discontinued operations, net of tax $ - Gain on dispositions, net of tax $ Income from discontinued operations, net of tax $ Income from discontinued operations, net of tax, attributable to noncontrolling interest $ - Income from discontinued operations, net of tax, attributable to TSYS common shareholders $ |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 3 Fair Value Measurement GAAP 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 during the years ended December 31, 2016, 2015 or 2014. Goodwill is assessed annually for impairment in the second quarter of each year using fair value measurement techniques. Specifically, goodwill impairment is determined using a three-step test. Step 0 is a qualitative analysis of relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit (RU) with its book value, including goodwill. If the fair value of the RU exceeds its book value, goodwill is considered not impaired and the second step of the impairment test is unnecessary. If the book value of the RU exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the RU’s goodwill with the book value of that goodwill. If the book value of the RU’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The fair value of the RU is allocated to all of the assets and liabilities of that unit as if the RU had been acquired in a business combination and the fair value of the RU was the purchase price paid to acquire the RU. The estimate of fair value of the Company’s RUs is determined using various valuation techniques, including using an equally weighted combination of the market approach and the income approach. The market approach, which contains Level 2 inputs, utilizes readily available market valuation multiples to estimate fair value. The income approach is a valuation technique that utilizes the discounted cash flow (DCF) method, which includes Level 3 inputs. Under the DCF method, the fair value of the RU reflects the present value of the projected earnings that will be generated by each RU after taking into account the revenues and expenses associated with the asset, the relative risk that the cash flows will occur, the contribution of other assets, and an appropriate discount rate to reflect the value of the invested capital. Cash flows are estimated for future periods based upon historical data and projections by management. As of December 31, 2016, the Company had recorded goodwill in the amount of $3.3 billion. The Company performed its annual impairment test of its goodwill balances as of May 31, 2016, and this test did not indicate any impairment. The fair value of the RUs substantially exceeds the carrying value. Refer to Note 6 for more information regarding goodwill. The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Note 4 Cash and Cash Equivalents Cash and cash equivalent balances as of December 31, 2016 and 2015 are summarized as follows: (in thousands) 2016 2015 Cash and cash equivalents in domestic accounts $ Cash and cash equivalents in foreign accounts Total $ The Company maintains operating 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. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 5 Prepaid Expenses and Other Current Assets Significant components of prepaid expenses and other current assets as of December 31, 2016 and 2015 are summarized as follows: (in thousands) 2016 2015 Prepaid expenses $ Supplies inventory Income taxes receivable - Other Total $ |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 6 Goodwill In 2016, the Company completed the TransFirst acquisition resulting in an additional $1.7 billion of goodwill being recorded. In addition, there was a downward adjustment to goodwill of $584,000 related to income tax reserves associated with the Netspend acquisition. In 2015, the Company adjusted the Netspend goodwill allocation to include an additional $627,000 for an adjustment to the sales tax reserves associated with the acquisition. The gross amount and accumulated impairment losses of goodwill as of December 31, 2016 and 2015 are as follows: 2016 (in thousands) North America International Merchant Netspend Consolidated Gross amount $ $ Accumulated impairment losses - Goodwill, net $ $ 2015 North America International Merchant Netspend Consolidated Gross amount $ $ Accumulated impairment losses - Goodwill, net $ $ Below are the balances of goodwill as of December 31, 2016 and 2015 along with the related changes in carrying value. (in thousands) North America International Merchant Netspend Consolidated Balance as of December 31, 2014 $ $ Netspend tax adjustment - - - Currency translation adjustments - - - Balance as of December 31, 2015 $ $ Netspend tax adjustment - - - TransFirst acquisition - - - Currency translation adjustments - - - Balance as of December 31, 2016 $ $ Refer to Note 23 for more information on acquisitions. |
Other Intangible Assets, Net
Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets, net | Note 7 Other Intangible Assets, Net In 2016, the changes in other intangible assets related to foreign currency translation and the acquisition of TransFirst. R efer to Note 23 for more information on acquisitions. Significant components of other intangible assets as of December 31, 2016 and 2015 are summarized as follows: 2016 (in thousands) Gross Accumulated Net Merchant relationships $ $ Channel relationships Customer relationships Trade name Covenants-not-to-compete Database Trade association Favorable lease Total $ $ 2015 (in thousands) Gross Accumulated Net Channel relationships $ $ Customer relationships Trade name Covenants-not-to-compete Database Trade association Favorable lease Total $ $ Amortization related to other intangible assets, which is recorded in selling, general and administrative expenses, was $163.8 million, $75.8 million and $77.3 million for 2016, 2015 and 2014, respectively. The weighted average useful life for each component of other intangible assets, and in total, as of December 31, 2016 is as follows: Weighted Average Merchant relationships Channel relationships Customer relationships Trade name Covenants-not-to-compete Database Trade association Favorable lease Total Estimated future amortization expense of other intangible assets as of December 31, 2016 for the next five years is: (in thousands) 2017 $ 2018 2019 2020 2021 |
Computer Software, Net
Computer Software, Net | 12 Months Ended |
Dec. 31, 2016 | |
Research and Development [Abstract] | |
Computer Software, net | Note 8 Computer Software, Net Computer software as of December 31, 2016 and 2015 is summarized as follows: (in thousands) 2016 2015 Licensed computer software $ Software development costs Acquisition technology intangibles Total computer software Less accumulated amortization: Licensed computer software Software development costs Acquisition technology intangibles Total accumulated amortization Computer software, net $ The Company held the following computer software under license agreements as of December 31, 2016 and 2015: (in thousands) 2016 2015 Licensed computer software $ Accumulated amortization Licensed computer software, net $ Amortization expense includes amounts for computer software acquired under license agreements. The Company had the following amortization expense related to computer software for the years ended December 31, 2016, 2015 and 2014: (in thousands) 2016 2015 2014 Amortization expense related to: Licensed computer software $ Software development costs Acquisition technology intangibles The weighted average useful life for each component of computer software, and in total, as of December 31, 2016, is as follows: Weighted Average Licensed computer software Software development costs Acquisition technology intangibles Total Estimated future amortization expense of licensed computer software, software development costs and acquisition technology intangibles as of December 31, 2016 for the next five years is: (in thousands) Licensed Computer Software Development Acquisition Technology 2017 $ 2018 2019 2020 2021 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Note 9 Property and Equipment, Net Property and equipment balances as of December 31, 2016 and 2015 are as follows: (in thousands) 2016 2015 Computer and other equipment $ Buildings and improvements Furniture and other equipment Land Other Total property and equipment Less accumulated depreciation and amortization Property and equipment, net $ The Company has various types of equipment under capital lease arrangements. The Company has the following amounts of equipment under capital lease obligations as of December 31, 2016 and 2015: (in thousands) 2016 2015 Computer and other equipment $ Furniture and other equipment Total equipment Less accumulated depreciation: Computer and other equipment Furniture and other equipment Total accumulated depreciation Total equipment, net $ Depreciation and amortization expense includes amounts for computer equipment, furniture and other equipment acquired under capital lease. Depreciation and amortization expense related to property and equipment was $62.5 million, $56.6 million and $53.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Contract Acquisition Costs, Net
Contract Acquisition Costs, Net | 12 Months Ended |
Dec. 31, 2016 | |
Contract Acquisition Costs, Net | |
Contract Acquisition Costs, net | Note 10 Contract Acquisition Costs, Net Significant components of contract acquisition costs as of December 31, 2016 and 2015 are summarized as follows: (in thousands) 2016 2015 Conversion costs, net of accumulated amortization of $164.4 million and $150.0 million as of 2016 and 2015, respectively $ Payments for processing rights, net of accumulated amortization of $145.3 million and $137.9 million as of 2016 and 2015, respectively Total $ Amortization expense related to contract acquisition costs for the years ended December 31, 2016, 2015 and 2014 is as follows: (in thousands) 2016 2015 2014 Amortization expense related to: Conversion costs $ Payments for processing rights The weighted average useful life for each component of contract acquisition costs, and in total, as of December 31, 2016 is as follows: Weighted Average Amortization Period (Yrs) Conversion costs Payments for processing rights Total Estimated future amortization expense of conversion costs and payments for processing rights as of December 31, 2016 for the next five years is: (in thousands) Conversion Costs Payments for 2017 $ 2018 2019 2020 2021 |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | Note 11 Equity Investments The Company has an equity investment in CUP Data and records its 44.56% ownership using the equity method of accounting. CUP Data is sanctioned by the People's Bank of China, China's central bank, and has become one of the world's largest and fastest-growing payments networks. CUP Data currently provides transaction processing, disaster recovery and other services for banks and bankcard issuers in China. The Company has an equity investment in TSYS de México and records its 49% ownership using the equity method of accounting. The operation prints statements and provides card-issuing support services to the equity investment clients and others. TSYS' equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments. TSYS believes the carrying value approximates the underlying net assets of the equity investments. TSYS' equity in income of equity investments (net of tax) for the years ended December 31, 2016, 2015 and 2014 was $25.9 million, $22.1 million and $17.6 million, respectively. A summary of TSYS' equity investments as of December 31, 2016 and 2015 is as follows: (in thousands) 2016 2015 CUP Data $ Other Total $ |
Long-term Borrowings and Capita
Long-term Borrowings and Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings and Capital Lease Obligations | Note 12 Long-term Borrowings and Capital Lease Obligations Long-term debt as of December 31, 2016 and 2015 consists of: (in thousands) 2016 2015 3.800% Senior Notes due April 1, 2021 (5 year tranche), net of discount and debt issuance costs $ - 4.800% Senior Notes due April 1, 2026 (10 year tranche), net of discount and debt issuance costs - LIBOR + 1.500%, unsecured term facility, due February 23, 2021, with quarterly principal and interest payments, net of debt issuance costs - 2.375% Senior Notes due June 1, 2018 (5 year tranche), net of discount and debt issuance costs 3.750% Senior Notes due June 1, 2023 (10 year tranche), net of discount and debt issuance costs LIBOR + 1.300%, unsecured revolving loan, due February 23, 2021, with monthly interest payments on outstanding balances - 1.380% note payable due December 31, 2017, with monthly interest and principal payments LIBOR + 1.125%, unsecured term loan, due April 8, 2018, with quarterly principal and interest payments, net of debt issuance costs - LIBOR + 1.125%, unsecured term loan, due September 10, 2017, with quarterly principal and interest payments, net of debt issuance costs - 1.500% note payable, due September 30, 2016, with monthly interest and principal payments - LIBOR + 2.000%, unsecured term loan, due December 7, 2017, with monthly interest payments and principal paid at maturity - 1.500% note payable, due January 31, 2016, with monthly interest and principal payments - Total debt Less current portion Noncurrent portion of long-term debt $ On January 26, 2016, the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) with Vista Equity Partners Fund V, L.P., a Delaware limited partnership (“Fund V”), Vista Equity Partners Fund V-A, L.P., a Cayman Islands limited partnership (“Fund V-A”), Vista Equity Partners Fund V-B, L.P., a Cayman Islands limited partnership (“Fund V-B”), Vista Equity Partners Fund V Executive, L.P., a Delaware limited partnership (“Fund V Executive”), VEPF V FAF, L.P., a Delaware limited partnership (“VEPF V”), Vista Equity Associates, LLC, a Delaware limited liability company (“Associates LLC” and, together with Fund V, Fund V-A, Fund V-B, Fund V Executive and VEPF V, the “Sellers”), and TransFirst, a Delaware corporation, pursuant to which, and upon the terms and subject to the conditions set forth in the Purchase Agreement, the Company acquired all of the outstanding capital stock of TransFirst from the Sellers on April 1, 2016. On February 23, 2016, the Company entered into a Credit Agreement (the “2016 Credit Agreement”) with JPMorgan Chase Bank, N.A., as Administrative Agent and L/C Issuer, Bank of America, N.A., as Syndication Agent and L/C Issuer, The Bank of Tokyo-Mitsubishi UFJ, LTD., U.S. Bank National Association and Wells Fargo Bank, National Association, as Co-Documentation Agents, and the other lenders party thereto, with J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, The Bank of Tokyo-Mitsubishi UFJ, LTD., U.S. Bank National Association and Wells Fargo Securities, LLC as joint lead arrangers and joint bookrunners. The 2016 Credit Agreement provides the Company with a $700 million five-year term loan facility (the “Term Loan Facility”) consisting of (i) a $300 million term loan (the “Refinancing Term Loan”) funded upon entry into the 2016 Credit Agreement and (ii) a $400 million term loan (the “Delayed Draw Term Loan”). The 2016 Credit Agreement also provides the Company with a $800 million unsecured revolving credit facility (the “Revolving Loan Facility”), which includes a $50 million sub-facility for the issuance of standby letters of credit. The balance as of December 31, 2016 was $697.8 million net of discount and debt issuance costs on the Term Loan Facility. There is no outstanding balance as of December 31, 2016 on the Revolving Loan Facility. The Refinancing Term Loan was used to repay in full the Company’s outstanding loans and other obligations under that certain credit agreement, dated as of September 10, 2012, by and among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent thereunder, as amended, and that certain credit agreement, dated as of April 8, 2013, by and among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent thereunder, as amended. The Delayed Draw Term Loan was used to finance, in part, the acquisition and related transactions, upon satisfaction of a limited set of conditions precedent. The Revolving Loan Facility is available for draws for purposes of working capital and other general corporate purposes, including to finance, in part, the acquisition and related transactions upon satisfaction of a limited set of conditions precedent. The creditor group of the modified debt remained consistent before and after the debt was amended. Any exceptions were minor. Concurrently with entering into the Purchase Agreement, the Company obtained commitments for a $2.0 billion 364-day bridge term loan facility from JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC, Merrill Lynch, Borrowings under the 2016 Credit Agreement will accrue interest at the base rate (as defined in the 2016 Credit Agreement) or, for certain euro-denominated borrowings, the London Interbank Offered Rate (“LIBOR”), in each case plus a margin that is set based on the Company’s corporate credit ratings. The applicable margin for loans bearing interest based on LIBOR ranges from 0.900% to 1.500% for revolving loans and 1.000% to 1.750% for term loans. The applicable margin for loans bearing interest based on the base rate ranges from 0.000% to 0.500% for revolving loans and 0.000% to 0.750% for term loans. In addition, the Company will pay the lenders a facility fee ranging from 0.100% to 0.250% per annum, depending on the Company’s corporate credit ratings, on the commitments under the Revolving Loan Facility (regardless of usages) and the undrawn commitment amount in respect of the Delayed Draw Term Loan. Based on the Company’s current corporate credit ratings, (i) the applicable margin for loans accruing interest at the base rate is 0.500% for term loans and 0.300% for revolving loans and (ii) the applicable margin for loans accruing interest at LIBOR is 1.500% for term loans and 1.300% for revolving loans. The 2016 Credit Agreement contains customary covenants regarding, among other matters, the maintenance of insurance, the preservation and maintenance of the Company’s corporate existence, material compliance with laws and the payment of taxes and other material obligations. During the year ended December 31, 2016, the Company repaid $400.0 million on the Revolving Loan Facility. As of December 31, 2016, the outstanding balance on the Revolving Loan Facility was $70.0 million. On March 17, 2016, the Company closed its sale (the “Transaction”) of $750 million aggregate principal amount of 3.800% Senior Notes due 2021 and $750 million aggregate principal amount of 4.800% Senior Notes due 2026 (collectively, the “2016 Notes”) pursuant to an agreement (the “Underwriting Agreement”) with J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the underwriters, whereby the Company agreed to sell and the Underwriters agreed to purchase the 2016 Notes from the Company, subject to and upon the terms and conditions set forth in the Underwriting Agreement. The Company used the net proceeds of the Transaction to pay a portion of the approximately $2.35 billion purchase price of the Company’s acquisition of TransFirst and related fees and expenses. The 2016 Notes were issued pursuant to a Senior Indenture, dated as of March 17, 2016, between the Company and Regions Bank, as trustee. The balance as of December 31, 2016 was $743.5 million net of discount and debt issuance costs for the Senior Notes due June 2021 and $743.0 million net of discount and debt issuance costs for the Senior Notes due June 2026. During December 2014, EMEA obtained a £900,000, or approximately $1.4 million term loan. In September 2015, TSYS increased the loan by £1.3 million, or approximately $1.9 million. The loan bears interest at a rate of LIBOR plus two percent. The loan maturity date was December 2017, and had monthly interest payments. The lender in this transaction was Merchants Limited, who had a noncontrolling interest in EMEA. In 2016, the Company purchased the remaining ownership interest in EMEA from Merchants Limited. In addition, the debt was paid off in conjunction with the acquisition. In December 2015, the Company entered into a $30.0 million financing agreement for perpetual software licenses. The balance as of December 31, 2016 was $13.9 million. In September 2014, the Company entered into a $13.6 million financing agreement for perpetual software licenses. The agreement was paid during 2016 and no outstanding balance remained. In April 2013, the Company entered into a Credit Agreement (the “2013 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 2013 Credit Agreement provided for a five-year term loan to the Company in the amount of $200.0 million (the “Term Loan”) and bore interest at LIBOR plus 1.125%, which was subject to adjustment based on changes in the Company’s credit ratings, with margins ranging from 1.00% to 1.75%. The 2013 Credit Agreement was paid during 2016 and no outstanding balance remains. In May 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 “2013 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 2013 Notes from the Company, subject to and upon the terms and conditions set forth in the Underwriting Agreement. The interest on the 2013 Notes are payable semiannually. The Company paid fees in 2013 associated with the issuance of these 2013 Notes of approximately $8.9 million and recorded discounts of approximately $4.3 million that are being amortized over the life of the 2013 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 2013 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 balance as of December 31, 2016 was $548.1 million net of discount and debt issuance costs for the Senior Notes due June 2018 and $544.0 million net of discount and debt issuance costs for the Senior Notes due June 2023. The 2013 and 2016 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 2013 and 2016 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 defined in the Prospectus Supplements for the 2013 and 2016 Notes offerings. Required annual principal payments on long-term debt for the five years subsequent to December 31, 2016 are summarized as follows: (in thousands) 2017 $ 2018 2019 2020 2021 Capital lease obligations as of December 31, 2016 and 2015 consist of: (in thousands) 2016 2015 Capital lease obligations $ Less current portion Noncurrent portion of capital leases $ The Company acquires various computer equipment, software, machinery and equipment and furniture and fixtures under capital lease obligations. Refer to Notes 8, 9 and 22 for more information. The capital lease obligations have various payment terms for each capital lease obligation, including single payment leases, monthly, quarterly and annually. The lease terms for the equipment and software range from one to six years. The future minimum lease payments under capital leases as of December 31, 2016 are summarized as follows: (in thousands) 2017 $ 2018 2019 2020 - 2021 - Total minimum lease payments Less amount representing interest Principal minimum lease payments $ |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Contract Acquisition Costs, Net | |
Other Current Liabilities | Note 13 Other Current Liabilities Significant components of other current liabilities as of December 31, 2016 and 2015 are summarized as follows: (in thousands) 2016 2015 Deferred revenues $ Accrued expenses Accrued third-party commissions Litigation settlements Dividends payable Accrued interest Other Total $ |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income Taxes | Note 14 Income Taxes The provision for income taxes includes income taxes currently payable and those deferred because of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities. The components of income tax expense included in the Consolidated Statements of Income are as follows: Years Ended December 31, (in thousands) 2016 2015 2014 Current income tax expense: Federal $ State Foreign Total current income tax expense Deferred income tax expense (benefit): Federal State Foreign Total deferred income tax expense (benefit) Total income tax expense $ Years Ended December 31, (in thousands) 2016 2015 2014 Components of income before income tax expense: Domestic $ Foreign Total income before income tax expense $ Income tax expense differs from the amounts computed by applying the statutory U.S. federal income tax rate of 35% to income before income taxes, noncontrolling interest and equity in income of equity investments as a result of the following: Years Ended December 31, (in thousands) 2016 2015 2014 Computed "expected" income tax expense $ Increase (decrease) in income tax expense resulting from: International tax rate differential and equity income State income tax expense, net of federal income tax effect Increase (decrease) in valuation allowance Tax credits Deduction for domestic production activities Permanent differences and other, net Total income tax expense $ Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability as of December 31, 2016 and 2015 relate to the following: As of December 31, (in thousands) 2016 2015 Deferred income tax assets: Net operating loss and income tax credit carryforwards $ Allowances for doubtful accounts and billing adjustments Deferred revenue Share-based compensation Foreign currency translation - Other, net Total deferred income tax assets Less valuation allowance for deferred income tax assets Net deferred income tax assets Deferred income tax liabilities: Excess tax over financial statement depreciation Computer software development costs Purchase accounting adjustments Foreign currency translation - Other, net Total deferred income tax liabilities Net deferred income tax liabilities $ Total net deferred tax assets (liabilities): Noncurrent deferred tax asset $ Noncurrent deferred tax liability Net deferred tax liability $ As of December 31, 2016, TSYS had recognized deferred tax assets from net operating losses, capital losses and federal and state income tax credit carryforwards of $8.5 million, $0.4 million and $25.6 million, respectively. As of December 31, 2015, TSYS had recognized deferred tax assets from net operating losses and federal and state income tax credit carryforwards of $4.5 million and $25.0 million, respectively. Net deferred income tax liabilities were also adjusted for acquisition activities. Refer to Note 23 for more information on acquisitions. In assessing the realizability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Management believes it is more likely than not that TSYS will realize the benefits of these deductible differences, net of existing valuation allowances. The valuation allowance for deferred tax assets was $21.3 million and $18.4 million at December 31, 2016 and 2015, respectively. The increase in the valuation allowance for deferred income tax assets was $2.9 million for 2016. The increase relates to foreign tax credits which, more likely than not, will not be realized in later years. TSYS has adopted the permanent reinvestment exception under GAAP, with respect to future earnings of certain foreign subsidiaries. As a result, TSYS considers foreign earnings related to these foreign operations to be permanently reinvested. No provision for U.S. federal and state incomes taxes has been made in the consolidated financial statements for those non-U.S. subsidiaries whose earnings are considered to be reinvested. The amount of undistributed earnings considered to be “reinvested” which may be subject to tax upon distribution was approximately $81.1 million as of December 31, 2016. Although TSYS does not intend to repatriate these earnings, a distribution of these non-U.S. earnings in the form of dividends, or otherwise, would subject the Company to both U.S. federal and state income taxes, as adjusted for non-U.S. tax credits, and withholding taxes payable to the various non-U.S. countries. Determination of the amount of any unrecognized deferred income tax liability on these undistributed earnings is not practicable. 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 2011 and with few exceptions, the Company is no longer subject to income tax examinations from state and local or foreign tax authorities for years before 2005. There are currently federal income tax examinations in progress for the years 2011 through 2013. Additionally, a number of tax examinations are in progress by the relevant state tax authorities. Although TSYS is unable to determine the ultimate outcome of these examinations, TSYS believes that its liability for uncertain tax positions relating to these jurisdictions for such years is adequate. GAAP 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. During the year ended December 31, 2016, TSYS increased its liability for uncertain income tax positions by a net amount of approximately $3.4 million. 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 any significant changes related to these obligations within the next twelve months. A reconciliation of the beginning and ending amount of unrecognized tax liabilities is as follows 1 : (in millions) Year Ended December 31, 2016 Beginning balance $ Current activity: Additions based on tax positions related to current year Additions for tax positions of prior years Decreases resulting from settlements with tax authorities Net, current activity Ending balance $ 1 Unrecognized state tax liabilities are not adjusted for the federal tax impact. 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 $1.8 million and $0.7 million as of December 31, 2016 and December 31, 2015, respectively. The total amounts of unrecognized income tax benefits as of December 31, 2016 and December 31, 2015 that, if recognized, would affect the effective tax rates are $17.0 million and $13.2 million (net of the federal benefit on state tax issues), respectively, which includes interest and penalties of $1.2 million and $0.5 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 Commitments and Contingencies LEASE AND PURCHASE COMMITMENTS: TSYS is obligated under noncancelable operating leases for computer equipment, software and facilities. Additionally, the Company has long-term obligations which consist of required minimum future payments under contracts withthe Company’s distributors and other service providers. The future minimum lease payments under noncancelable operating leases and purchase commitments with remaining terms greater than one year for the next five years and thereafter and in the aggregate as of December 31, 2016, are as follows: (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter Total future minimum commitment payments $ The majority of computer equipment lease commitments come with a renewal option or an option to terminate the lease. These lease commitments may be replaced with new leases which allow the Company to continually update its computer equipment. Total rental expense under all operating leases in 2016, 2015 and 2014 was $122.9 million, $124.8 million and $105.2 million, respectively. CONTRACTUAL COMMITMENTS: In the normal course of its business, the Company maintains long-term processing contracts with its clients. These processing contracts contain commitments, including, but not limited to, minimum standards and time frames against which the Company's performance is measured. In the event the Company does not meet its contractual commitments with its clients, the Company may incur penalties and certain clients may have the right to terminate their contracts with the Company. The Company does not believe that it will fail to meet its contractual commitments to an extent that will result in a material adverse effect on its financial position, results of operations or cash flows. CONTINGENCIES: 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 accruals for litigation and similar matters when those matters present loss contingencies that TSYS determines to be both probable and reasonably estimable in accordance with GAAP. Legal costs are expensed as incurred. 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. Korthals Matter Central Payment Co., LLC (CPAY), a majority owned joint venture of the Company, has been named as a defendant in a purported class action complaint, Heidarpour v. Central Payment Co., LLC, Civil Action No. 4:15-cv-00139, filed August 18, 2015 in the United States District Court for the Middle District of Georgia, relating to the activities of Korthals, LLC (“Korthals”) and its sole shareholder, an independent sales agent of CPAY. The complaint alleges that CPAY retained Korthals to send unsolicited commercial pre-recorded messages to residential phone numbers in violation of the Telephone Consumer Protection Act (47 U.S.C. §§227 et seq.). The complaint seeks damages and injunctive relief among other remedies. On December 20, 2016, the parties entered into a settlement agreement with regard to this matter. Among other things, the settlement agreement requires CPAY to create a settlement fund of $6.5 million for a nationwide class of plaintiffs. The settlement agreement was preliminarily approved by the United States District Court for the Middle District of Georgia on January 17, 2017, and a final approval hearing for the settlement is scheduled for May 4, 2017. Federal Trade Commission (FTC) Matter The Company has been in discussions with the FTC regarding an investigation by the FTC staff of certain marketing practices of NetSpend Corporation (NetSpend), a subsidiary of the Company. After lengthy discussions with staff and the FTC commissioners relating to whether the FTC should proceed with litigation and the potential for settlement, the FTC voted 2-1 to authorize the filing of a complaint, filed on November 10, 2016 in the U.S. District Court for the Northern District of Georgia, Federal Trade Commission v. NetSpend Corporation, Case No. 1:16-CV-4203. The complaint alleges that NetSpend violated Section 5 of the Federal Trade Commission Act as a result of certain marketing practices. NetSpend filed a motion to dismiss the complaint on December 14, 2016, arguing that the complaint failed to state a claim on which relief could be granted. As of December 31, 2016, the parties were engaged in active settlement discussions. While NetSpend believes that it has substantial defenses, it agreed to the structure of a potential settlement with FTC staff in early February 2017, in order to save costs and avoid the risks of on-going litigation. However, NetSpend also raised with the FTC the propriety of the suit being brought in the first instance and any settlement requires FTC approval followed by court approval. The timing of the FTC’s consideration of issues relating to NetSpend’s position and the potential settlement is uncertain. Should a settlement not be reached, the Company will vigorously defend the case. We are not in a position to estimate the chances of success. The Company incurred a charge of $13.0 million to GAAP operating income in the fourth quarter of 2016 in connection with the settlement discussions. TelexFree Matter ProPay, Inc. (ProPay), a subsidiary of the Company, has been named as one of a number of defendants (including other merchant processors) in several purported class action lawsuits relating to the activities of TelexFree, Inc. and its affiliates and principals. TelexFree is a former merchant customer of ProPay. With regard to TelexFree, each purported class action lawsuit generally alleges that TelexFree engaged in an improper multi-tier marketing scheme involving voice-over Internet protocol telephone services. The plaintiffs in each of the purported class action complaints generally allege that the various merchant processor defendants, including ProPay, aided and abetted the improper activities of TelexFree. TelexFree filed for bankruptcy protection in Nevada. The bankruptcy proceeding was subsequently transferred to the Massachusetts Bankruptcy Court. Specifically, ProPay has been named as one of a number of defendants (including other merchant processors) in each of the following purported class action complaints relating to TelexFree: (i) Waldermara Martin, et al. v. TelexFree, Inc., et al. (Case No. BK-S-14-12524-ABL) filed on May 3, 2014 in the United States Bankruptcy Court District of Nevada, (ii) Anthony Cellucci, et al. v. TelexFree, Inc., et. al. (Case No. 4:14-BK-40987) filed on May 15, 2014 in the United States Bankruptcy Court District of Massachusetts, (iii) Maduako C. Ferguson Sr., et al. v. Telexelectric, LLP, et. al (Case No. 5:14-CV-00316-D) filed on June 5, 2014 in the United States District Court of North Carolina, (iv) Todd Cook v. TelexElectric LLP et al. (Case No. 2:14-CV-00134), filed on June 24, 2014 in the United States District Court for the Northern District of Georgia, (v) Felicia Guevara v. James M. Merrill et al., CA No. 1:14-cv-22405-DPG), filed on June 27, 2014 in the United State District Court for the Southern District of Florida, and (vi) Reverend Jeremiah Githere, et al. v. TelexElectric LLP et al. (Case No. 1:14-CV-12825-GAO), filed on June 30, 2014 in the United States District Court for the District of Massachusetts (together, the “Actions”). On October 21, 2014, the Judicial Panel on Multidistrict Litigation transferred and consolidated the Actions before the United States District Court for the District of Massachusetts (the “Consolidated Action”). Following the Judicial Panel on Multidistrict Litigation’s October 21, 2014 order, four additional cases arising from the alleged TelexFree scheme were transferred to the United States District Court for the District of Massachusetts for coordinated or consolidated proceedings, including (i) Paulo Eduardo Ferrari et al. v. Telexfree, Inc. et al. (Case No. 14-04080); (ii) Magalhaes v. TelexFree, Inc., et al., No. 14-cv-12437 (D. Mass.); (iii) Griffith v. Merrill et al., No. 14-CV-12058 (D. Mass.); Abelgadir v. Telexelectric, LLP, No. 14-09857 (S.D.N.Y.) In addition, on September 23, 2015, a putative class action relating to TelexFree was filed in the United States District Court for the District of Arizona, styled Rita Dos Santos, Putative Class Representatives and those Similarly Situated v. TelexElectric, LLP et al ., 2:15-cv-01906-NVW (the “Arizona Action”). The Arizona Action makes claims similar to those alleged in the consolidated action pending before the United States District Court for the District of Massachusetts. On September 29, 2015, a group of certain defendants to the Consolidated Action, including ProPay, filed a “tag along” notice with the Judicial Panel on Multidistrict Litigation, asking that the Arizona Action be transferred to the District of Massachusetts where it can be consolidated or coordinated with the Consolidated Action. On October 20, 2015, the Judicial Panel on Multidistrict Litigation transferred the Arizona Action to the District of Massachusetts. The United States District Court for the District of Massachusetts appointed lead plaintiffs’ counsel on behalf of the putative class of plaintiffs in the Consolidated Action. On March 31, 2015, the plaintiffs filed a First Consolidated Amended Complaint (the “Consolidated Complaint”). The Consolidated Complaint purports to bring claims on behalf of all persons who purchased certain TelexFree “memberships” and suffered a “net loss” between January 1, 2012 and April 16, 2014. The Consolidated Complaint supersedes the complaints filed prior to consolidation of the Actions, and alleges that ProPay aided and abetted tortious acts committed by TelexFree, and that ProPay was unjustly enriched in the course of providing payment processing services to TelexFree. On April 30, 2015, the plaintiffs filed a Second Consolidated Amended Complaint (the “Second Amended Complaint”), which amends and supersedes the Consolidated Complaint. Like the Consolidated Complaint, the Second Amended Complaint generally alleges that ProPay aided and abetted tortious acts committed by TelexFree, and that ProPay was unjustly enriched in the course of providing payment processing services to TelexFree. Several defendants, including ProPay, moved to dismiss the Second Amended Complaint on June 2, 2015.Briefing on those motions closed on October 16, 2015. The court held a hearing on the motions to dismiss on November 2, 2015. At present, pursuant to a court order, all discovery in the action is stayed pending the resolution of parallel criminal proceedings against certain former principals of TelexFree, Inc. ProPay has also received various subpoenas, a seizure warrant and other inquiries requesting information regarding TelexFree from (i) the Commonwealth of Massachusetts, Securities Division, (ii) United States Securities and Exchange Commission, (iii) US Immigration and Customs Enforcement, and (iv) the bankruptcy Trustee of the Chapter 11 entities of TelexFree, Inc., TelexFree, LLC and TelexFree Financial, Inc. Pursuant to the seizure warrant served by the United States Attorney’s Office for the District of Massachusetts, ProPay delivered all funds associated with TelexFree held for chargeback and other purposes by ProPay to US Immigration and Customs Enforcement. In addition, ProPay received a notice of potential claim from the bankruptcy Trustee as a result of the relationship of ProPay with TelexFree and its affiliates. The above proceedings and actions are preliminary in nature. While the Company and ProPay intend to vigorously defend matters arising out of the relationship of ProPay with TelexFree and believe ProPay has substantial defenses related to these purported claims, the Company currently cannot reasonably estimate losses attributable to these matters. GUARANTEES AND INDEMNIFICATIONS: The Company has entered into processing and licensing agreements with its clients that include intellectual property indemnification clauses. Under these clauses, the Company generally agrees to indemnify its clients, subject to certain exceptions, against legal claims that TSYS' services or systems infringe on certain third party patents, copyrights or other proprietary rights. In the event of such a claim, the Company is generally obligated to hold the client harmless and pay for related losses, liabilities, costs and expenses, including, without limitation, court costs and reasonable attorney's fees. The Company has not made any indemnification payments pursuant to these indemnification clauses. A portion of the Company’s business is conducted through distributors that provide load and reload services to cardholders at their locations. Members of the Company’s distribution and reload network collect cardholder funds and remit them by electronic transfer to the Issuing Banks for deposit in the cardholder accounts. The Company’s Issuing Banks typically receive cardholders’ funds no earlier than three business days after they are collected by the distributor. If any distributor fails to remit cardholders’ funds to the Company’s Issuing Banks, the Company typically reimburses the Issuing Banks for the shortfall created thereby. The Company manages the risk associated with this process through a formalized set of credit standards, volume limits and deposit requirements for certain distributors and by typically maintaining the right to offset any settlement shortfall against the commissions payable to the relevant distributor. To date, the Company has not experienced any significant losses associated with settlement failures and the Company had not recorded a settlement guarantee liability as of December 31, 2016. As of December 31, 2016, the Company’s estimated gross settlement exposure was $13.8 million. GPR cardholders can incur charges in excess of the funds available in their accounts and are liable for the resulting overdrawn account balance. Although the Company generally declines authorization attempts for amounts that exceed the available balance in a cardholder's account, the application of the Networks' rules and regulations, the timing of the settlement of transactions and the assessment of subscription, maintenance or other fees can, among other things, result in overdrawn card accounts. The Company also provides, as a courtesy and in its discretion, certain cardholders with a "cushion" that allows them to overdraw their card accounts by up to $10. In addition, eligible cardholders may enroll in the Issuing Banks' overdraft protection programs and fund transactions that exceed the available balance in their accounts. The Company generally provides the funds used as part of these overdraft programs (one of the Company’s issuing banks will advance the first $1.0 million on behalf of its cardholders) and is responsible to the Issuing Banks for any losses associated with any overdrawn account balances. As of December 31, 2016 and 2015, cardholders’ overdrawn account balances totaled $21.2 million and $17.9 million, respectively. As of December 31, 2016 and 2015, the Company’s reserves 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 was $10.5 million and $9.4 million, respectively. The Company has not recorded a liability for guarantees or indemnities in the accompanying consolidated balance sheet since the maximum amount of potential future payments under such guarantees and indemnities is not determinable. PRIVATE EQUITY INVESTMENTS: The Company has entered into limited partnership agreements in connection with investing in two Atlanta-based venture capital funds focused exclusively on investing in technology-enabled financial services companies. Pursuant to each limited partnership agreement, the Company has committed to invest up to $20.0 million in each fund so long as its ownership interest in each fund does not exceed 50%. As of December 31, 2016 and 2015, the Company had made contributions to the funds of $20.1 million and $15.0 million, respectively. The Company had investments, including gains, totaling $22.8 million and $17.6 million, respectively, as of December 31, 2016 and 2015. The Company recognized gains of $0.8 million, $4.0 million, and $0.8 million due to increases in fair value for the years ended December 31, 2016, 2015 and 2014, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 16 Employee Benefit Plans The Company provides benefits to its employees by offering employees participation in certain defined contribution plans. The employee benefit plans through which TSYS provided benefits to its employees during 2016 are described as follows: RETIREMENT SAVINGS AND STOCK PURCHASE PLANS: TSYS maintains a single plan, the Retirement Savings Plan, which is designed to reward all team members of TSYS U.S.-based companies with a uniform employer contribution. The terms of the plan provide for the Company to match 100% of the employee contribution up to 4% of eligible compensation. The Company can make discretionary contributions up to another 4% based upon business conditions. The Company also maintains a stock purchase plan for employees. The Company contributes 15% of employee contributions. The funds are used to purchase presently issued and outstanding shares of TSYS common stock on the open market at fair market value for the benefit of participants. The Company's contributions to the plans charged to expense for the years ended December 31, 2016, 2015 and 2014 are as follows: (in thousands) 2016 2015 2014 TSYS Retirement Savings Plan $ TSYS Stock Purchase Plan POSTRETIREMENT MEDICAL BENEFITS PLAN: TSYS provides certain medical benefits to qualified retirees through a postretirement medical benefits plan, which is immaterial to the Company's consolidated financial statements. The measurement of the benefit expense and accrual of benefit costs associated with the plan do not reflect the effects of the 2003 Medicare Act. Additionally, the benefit expense and accrued benefit cost associated with the plan, as well as any potential impact of the effects of the 2003 Medicare Act, are not significant to the Company' s consolidated financial statements. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity | |
Equity | Note 17 Equity DIVIDENDS: Dividends on common stock of $73.4 million were paid in 2016, compared to $73.7 million and $74.8 million in 2015 and 2014, respectively. EQUITY COMPENSATION PLANS: The following table summarizes TSYS' equity compensation plans by category as of December 31, 2016: (a) (b) (c) (in thousands, except per share data) Plan Category Number of Weighted- Number of securities Equity compensation plans approved by security holders $ 2 1 The Company does not have any equity compensation plans that were not approved by security holders. 1 Shares available for future grants under the Total System Services, Inc. 2007 Omnibus Plan and 2012 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares. 2 Weighted-average exercise price represents 2.9 million options only and does not include restricted share units that have no exercise price. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-Based Compensation. | |
Share-Based Compensation | Note 18 Share-Based Compensation General Description of Share-Based Compensation Plans TSYS has various long-term incentive plans under which the Compensation Committee of the Board of Directors has the authority to grant share-based compensation to TSYS employees. Long-Term Incentive Plans TSYS maintains the Total System Services, Inc. 2012 Omnibus Plan, Total System Services, Inc. 2007 Omnibus Plan, Total System Services, Inc. 2002 Long-Term Incentive Plan, Total System Services, Inc. 2000 Long-Term Incentive Plan and the Amended and Restated NetSpend Holdings, Inc. 2004 Equity Incentive Plan for Options and Restricted Shares Assumed by Total System Services, Inc. to advance the interests of TSYS and its shareholders through awards that give employees and directors a personal stake in TSYS' growth, development and financial success. Awards under these plans are designed to motivate employees and directors to devote their best efforts to the business of TSYS. Awards will also help TSYS attract and retain the services of employees and directors who are in a position to make significant contributions to TSYS' success. The plans are administered by the Compensation Committee of the Company's Board of Directors and enable the Company to grant nonqualified and incentive stock options, stock appreciation rights, restricted stock and restricted stock units, performance units or performance shares, cash-based awards and other stock-based awards. All stock options must have a maximum life of no more than ten years from the date of grant. The exercise price will not be less than 100% of the fair market value of TSYS' common stock at the time of grant. Any shares related to awards which terminate by expiration, forfeiture, cancellation or otherwise are settled in shares, or are exchanged with the Committee's permission, prior to the issuance of shares, for awards not involving shares, shall be available again for grant under the various plans. The aggregate number of shares of TSYS stock which may be granted to participants pursuant to awards granted under the various plans may not exceed the following: Total System Services, Inc. 2012 Omnibus Plan - 17 million shares; Total System Services, Inc. 2007 Omnibus Plan - 5 million shares; Total System Services, Inc 2002 Long – Term Incentive Plan - 9.4 million shares; and Total System Services, Inc. 2000 Long-Term Incentive Plan - 2.4 million shares. Effective February 1, 2010 and March 5, 2012, no additional awards may be made from the Total System Services, Inc. 2000 and 2002 Long-Term Incentive Plans, respectively. Share-Based Compensation Share-based compensation costs are classified as selling, general and administrative expenses on the Company’s statements of income and corporate administration and other expenses for segment reporting purposes. 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 year ended December 31, 2016, share-based compensation was $43.7 million compared to $41.5 million and $30.8 million for the same periods in 2015 and 2014, respectively. Nonvested Awards The Company granted shares of TSYS common stock to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued under nonvested stock bonus awards and are typically for services to be provided in the future and vest over a period of up to four years. The grants to the Board of Directors were fully vested on the date of grant. The market value of the TSYS common stock at the date of issuance is charged as compensation expense over the vesting periods or derived service periods. The following table summarizes the number of shares granted each year. 2016 2015 2014 Number of shares granted Market value ( in millions ) $ A summary of the status of TSYS' nonvested shares as of December 31, 2016, 2015 and 2014 and the changes during the periods are presented below: 2016 2015 2014 (in thousands, except per share data) Nonvested shares Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of year $ $ $ Granted Vested Forfeited/canceled/adjusted Outstanding at end of year $ $ $ As of December 31, 2016, there was approximately $17.7 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 1.7 years. Performance- and Market-Based Awards The Company granted performance- and market-based shares to certain key executives. The Company has also granted performance-based shares to certain key employees. The performance- and market-based goals are established by the Compensation Committee of the Board of Directors and will vest up to a maximum of 200%. During 2016 and 2015, the Compensation Committee established performance goals based on adjusted EPS, Merchant Segment net revenue, corporate accountability operating income, attainment of synergies from the TransFirst acquisition, revenue growth and revenues before reimbursable items and market goals based on Total Shareholder Return (TSR) as compared to the TSR of the companies in the S&P 500 over the performance period. Compensation expense for performance-based shares 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 awards on a straight-line basis over the derived service period. The fair value of market-based awards is estimated on the grant date using a Monte Carlo simulation model. The Company expenses market-based awards on a straight-line basis. Compensation costs related to performance- and market-based shares are recognized through the longer of the performance period, the vesting period, or the derived service period. As of December 31, 2016, there was approximately $18.6 million of unrecognized compensation cost related to TSYS performance-based awards that is expected to be recognized through December 2018. As of December 31, 2016, there was approximately $1.9 million of unrecognized compensation cost related to TSYS market-based awards that is expected to be recognized through December 2018. The following table summarizes the market-based awards granted during the years 2016 and 2015: Year Performance Performance Number of Period Expensed 2016 December 2017 TSR December 2017 2016 December 2018 TSR December 2018 2015 July 2016, 2017 and 2018 TSR July 2018 2015 December 2017 TSR December 2017 The following table summarizes the performance-based awards granted during the years 2016, 2015 and 2014: Year Performance Performance Number of Period Expensed 2016 December 2016 Revenues before Reimbursable Items and Adjusted EPS December 2016 2016 December 2017 Adjusted EPS December 2017 2016 December 2018 Merchant Segment Net Revenue, Corporate Accountability Operating Income and attainment of synergies from TransFirst acquisition December 2018 2016 December 2018 Revenues before Reimbursable Items and Adjusted Operating Income December 2018 2016 December 2018 Merchant Segment Net Revenue and Corporate Accountability Operating Income December 2018 2016 December 2018 Adjusted EPS December 2018 2016 December 2016 Revenues before Reimbursable Items and Adjusted EPS December 2018 2015 December 2017 Adjusted EPS December 2017 2015 December 2015 Revenues before Reimbursable Items and Adjusted EPS December 2018 2014 December 2016 Revenues before Reimbursable Items and Adjusted EPS December 2016 A summary of the awards authorized in each year is below: Total Number of Shares Awarded 1 Potential Number of 2 Year Potential Performance-and Market- 2016 2015 2014 1 Shares awarded does not include dividend equivalents 2 Includes dividend equivalents A summary of the status of TSYS' performance- and market-based nonvested shares as of December 31, 2016, 2015 and 2014 and changes during those periods are presented below: 2016 2015 2014 (in thousands, except per share data) Performance- and market-based nonvested shares Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of year $ $ $ Granted Vested Forfeited/canceled/adjusted Outstanding at end of year $ $ $ Stock Option Awards Stock options generally become exercisable in three equal annual installments on the anniversaries of the date of grant and expire ten years from the date of grant. The required service period for retirement eligible employees is typically 12 or 18 months. For retirement eligible employees who retire prior to completing this required service period, the options vest on a pro-rata basis based upon the number of months employed during the full service period. For retirement eligible employees who retire after the required 18-month service period, the options become fully vested upon retirement. For retirement eligible employees who retire after the required 12-month service period, the option holder is deemed to have continued employment through the end of the vesting period and the options continue to vest in accordance with their terms. During 2016, 2015 and 2014, the Company granted stock options to key TSYS executive officers and non-management members of its Board of Directors. The grants to key TSYS executive officers were issued for services to be provided in the future and vest over a period of three years. The grants to the Board of Directors were fully vested on the date of grant. The weighted average fair value of the options granted was estimated on the date of grant using the Black-Scholes-Merton option-pricing model. The following table summarizes the weighted average assumptions, and the weighted average fair value of the options: 2016 2015 2014 Number of options granted Weighted average exercise price $ $ $ Risk-free interest rate % % % Expected volatility % % % Expected term (years) Dividend yield % % % Weighted average fair value $ $ $ A summary of TSYS' stock option activity as of December 31, 2016, 2015 and 2014, and changes during the years ended on those dates is presented below: 2016 2015 2014 Options: (in thousands, except per share data) Options Weighted Options Weighted Options Weighted Outstanding at beginning of year $ $ $ Granted Exercised Forfeited/canceled Outstanding at end of year $ $ $ Options exercisable at year-end $ $ $ Weighted average fair value of options granted during the year $ $ $ As of December 31, 2016 the average remaining contractual life and intrinsic value of TSYS’ outstanding and exercisable stock options were as follows: Outstanding Exercisable Average remaining contractual life (in years) Aggregate intrinsic value (in thousands) $ Shares Issued for Options Exercised During 2016, 2015 and 2014, employees of the Company exercised options for shares of TSYS common stock that were issued from treasury. The table below summarizes these stock option exercises by year: (in thousands) Options Exercised and Intrinsic Value 2016 $ 2015 2014 For awards granted before January 1, 2006 that were not fully vested on January 1, 2006, the Company recorded the tax benefits from the exercise of stock options as increases to the "Additional paid-in capital" line item of the Consolidated Balance Sheets. If the Company recognized tax benefits, the Company recorded these tax benefits from share-based compensation costs as cash inflows in the financing section and cash outflows in the operating section in the Statement of Cash Flows. The Company elected to use the short-cut method to calculate its historical pool of windfall tax benefits. As of December 31, 2016, there was approximately $2.7 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. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2016 | |
Treasury Stock. | |
Treasury Stock | Note 19 Treasury Stock The following table summarizes shares held as treasury stock and their related carrying value as of December 31: (in thousands) Number of Treasury Treasury Shares Cost 2016 $ 2015 2014 Stock Repurchase Plan In April 2010, TSYS announced a stock repurchase plan to purchase up to 10 million shares of TSYS stock. The shares may be purchased from time to time over the next two years at prices considered attractive to the Company. By January 2014, the TSYS Board had approved several increases in the number of shares that could be repurchased under its share repurchase plan to up to 28 million shares of TSYS stock. The expiration date of the plan was extended to April 30, 2015. In January 2015, TSYS announced that its Board had approved a new stock repurchase plan to purchase up to 20 million shares of TSYS stock. The shares may be purchased from time to time at prices considered appropriate. There is no expiration date for the plan. The previous plan was terminated. The table below summarizes these repurchases by year: (in thousands, except per share data) Total Number of Average Price Paid Repurchased Shares Cost 2016 $ $ 2015 2014 The following table sets forth information regarding the Company's purchases of its common stock on a monthly basis during the three months ended December 31, 2016: (in thousands, except per share data) Total Number of Average Price Paid Total Number of Maximum Number October 2016 - $ - November 2016 December 2016 1 Total $ 1 Includes delivery of shares to TSYS on vesting of shares to pay taxes. Treasury Shares In 2008, the Compensation Committee approved "share withholding for taxes" for all employee nonvested awards, and also for employee stock options under specified circumstances. The dollar amount of the income tax liability from each exercise is converted into TSYS shares and withheld at the statutory minimum. The shares are added to the treasury account and TSYS remits funds to the Internal Revenue Service to settle the tax liability. During 2016 and 2015, the Company acquired 144,839 shares for approximately $6.0 million and acquired 3,344 shares for approximately $0.2 million, respectively, as a result of share withholding for taxes. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Other Comprehensive Income (Loss) | |
Other Comprehensive Income (Loss) | Note 20 Other Comprehensive Income (Loss) Comprehensive income (loss) for TSYS consists of net income, cumulative foreign currency translation adjustments, unrealized gains on available for sale securities and the recognition of an overfunded or underfunded status of a defined benefit postretirement plan recorded as a component of shareholders' equity. The income tax effects allocated to and the cumulative balance of each component of accumulated other comprehensive income (loss) are as follows: (in thousands) Beginning Pretax Tax Net-of-tax Ending As of December 31, 2013 $ $ $ Foreign currency translation adjustments $ $ $ Transfer from noncontrolling interest (NCI) - - - Loss on available for sale securities Change in AOCI related to postretirement healthcare plans As of December 31, 2014 $ $ $ Foreign currency translation adjustments $ $ Transfer from NCI - - - Gain on available for sale securities Change in AOCI related to postretirement healthcare plans As of December 31, 2015 $ $ $ Foreign currency translation adjustments $ $ $ Transfer from NCI - - - Gain on available for sale securities Change in AOCI related to postretirement healthcare plans As of December 31, 2016 $ $ $ Consistent with its overall strategy of pursuing international investment opportunities, TSYS adopted the permanent reinvestment exception under GAAP, with respect to future earnings of certain foreign subsidiaries. Its decision to permanently reinvest foreign earnings offshore means TSYS will no longer allocate taxes to foreign currency translation adjustments associated with these foreign subsidiaries accumulated in other comprehensive income. |
Segment Reporting, including Ge
Segment Reporting, including Geographic Area Data and Major Customers | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting, including Geographic Area Data and Major Customers | |
Segment Reporting, including Geographic Area Data and Major Customers | Note 21 Segment Reporting, including Geographic Area Data and Major Customers TSYS provides global payment processing and other services to card-issuing and merchant acquiring institutions in the United States and internationally through online accounting and electronic payment processing systems. Corporate expenses, such as finance, legal, human resources, mergers and acquisitions and investor relations are categorized as Corporate Administration and Other. In April 2016, TSYS completed its acquisition of TransFirst which is part of the Merchant Services segment and its results are included in the following tables. Refer to Note 23 for more information on acquisitions. North America Services includes electronic payment processing services and other services provided from within the North America region. International Services includes electronic payment processing and other services provided from outside the North America region. Merchant Services includes electronic processing and other services provided to merchants and merchant acquirers. The Netspend segment provides GPR prepaid debit and payroll cards and alternative financial service solutions to the underbanked and other consumers in the United States. At TSYS, the chief operating decision maker (CODM) is a group consisting of Senior Executive Management and above. In 2014, the CODM decided that all share-based compensation costs should be included in the category “Corporate Administration and Other” for purposes of segment disclosures. The information utilized by the CODM consists of the financial statements and the main metrics monitored are revenue growth and growth in profitability. TSYS’ operating segments share certain resources, such as information technology support, that TSYS allocates asymmetrically. Operating Segments Years Ended December 31, (in thousands) 2016 2015 2014 Operating income (GAAP) (a) $ Share-based compensation TransFirst and Netspend M&A and integration expenses 1 - Litigation, claims, judgments or settlements - - Acquisition intangible amortization Adjusted operating income (non-GAAP) (b) $ Adjusted operating income by segment (non-GAAP): North America Services (c) $ International Services (d) Merchant Services (e) Netspend (f) Corporate Administration and Other Adjusted segment operating income 2 (non-GAAP) $ Total revenues (GAAP) (g) $ Less: reimbursable items Revenue before reimbursable items Intersegment revenues Segment revenue before reimbursable items (non-GAAP) $ Segment revenue before reimbursable items (non-GAAP): North America Services $ International Services Merchant Services Netspend Segment revenue before reimbursable items (non-GAAP) $ Total revenues (GAAP) (g) $ Less: reimbursable items Revenue before reimbursable items Less: interchange and assessments expenses - - Net revenue 2 (non-GAAP) (h) Intersegment revenues Segment net revenue (non-GAAP) $ Segment net revenue (non-GAAP): North America Services (i) $ International Services (j) Merchant Services (k) Netspend (l) Segment net revenue (non-GAAP) $ Segment external net revenue (non-GAAP): North America Services $ International Services Merchant Services Netspend Segment external net revenue (non-GAAP) $ Operating margin (GAAP) (a)/(g) Adjusted operating margin on net revenue (non-GAAP) (b)/(h) Adjusted segment operating margin on net revenue (non-GAAP): North America Services (c)/(i) International Services (d)/(j) Merchant Services (e)/(k) Netspend (f)/(l) 1 Excludes share-based compensation 2 Net revenue and adjusted segment operating income are non-GAAP measures. Net revenue is total revenues less reimbursable items (such as postage), as well as, merchant acquiring interchange and assessment fees charged by the card associations or payment networks that are recorded by TSYS as expense . Adjusted segment operating income excludes acquisition intangible amortization, TransFirst M&A expenses, share-based compensation and expenses associated with Corporate Administration and Other. The following table presents the Company’s depreciation expense by segment: Operating Segments Years Ended December 31, (in thousands) 2016 2015 2014 Depreciation and amortization: North America Services $ International Services Merchant Services Netspend Segment depreciation and amortization Acquisition intangible amortization Corporate Administration and Other Total depreciation and amortization $ The following table presents the Company’s total assets by segment: As of December 31, (in thousands) 2016 2015 North America Services $ Merchant Services Netspend International Services Intersegment assets Total assets $ The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas: As of December 31, (in thousands) 2016 2015 United States $ Europe Other Total $ The following tables reconcile geographic revenues to external revenues by operating segment based on the domicile of the Company’s customers for the years ended December 31: 2016 (in thousands) North America International Merchant Netspend Total Percentage of Revenues United States $ - $ % Europe 1 - Canada 1 - Mexico - - Other 1 - Total $ $ % 2015 (in thousands) North America International Merchant Netspend Total Percentage of Revenues United States $ - $ % Europe 1 - Canada 1 - - Mexico - - - Other 1 - Total $ $ % 2014 (in thousands) North America International Merchant Netspend Total Percentage of Revenues United States $ - $ % Europe 1 - - Canada 1 - - Mexico - - - Other 1 - Total $ $ % 1 Revenues are impacted by movements in foreign currency exchange rates MAJOR CUSTOMER: For the years ended December 31, 2016, 2015 and 2014, the Company had no major customers. |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplementary Cash Flow Information | Note 22 Supplemental Cash Flow Information Nonvested Share Awards The Company has issued shares of TSYS common stock to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued in the form of nonvested stock bonus awards for services to be provided in the future by such officers and employees. The grants to the Board of Directors were fully vested on the date of grant. Refer to Note 18 for more information on nonvested share awards. Equipment Acquired Under Capital Lease Obligations and Software Acquired Under License Agreements The Company acquired computer equipment under capital leases and software under license agreements in the amount of $1.8 million, $4.1 million and $17.9 million in 2016, 2015 and 2014, respectively. Software Acquired Under Direct Financing The Company did not acquire any software under direct financing in 2016. The Company acquired software under direct financing in the amount of $30.0 million and $13.6 million in 2015 and 2014, respectively. Refer to Note 12 for more information. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Note 23 Acquisitions TransFirst 2016 On April 1, 2016, the Company acquired all of the outstanding capital stock of TransFirst for an aggregate purchase price of $2.35 billion in cash as of the closing, which was subject to certain working capital and other adjustments, as described in the Purchase Agreement. TransFirst previously operated as a privately held company, under the ownership of Vista Equity Partners. The results of the newly acquired business are being reported by TSYS as part of the Merchant Services segment. The Company funded the cash consideration and the payment of transaction related expenses through a combination of cash-on-hand and proceeds from debt financings, including proceeds drawn under the Company’s 2016 Credit Agreement and the proceeds from the issuance of the 2016 Notes, which together included proceeds of approximately $2.35 billion. The goodwill amount of $1.7 billion arising from the acquisition is primarily attributable to the expansion of the Merchant Services Segment’s customer base, differentiated distribution channels and economies of scale expected from combining the operations of TSYS and TransFirst. All of the goodwill was assigned to TSYS’ Merchant Services segment. The goodwill recognized is not expected to be deductible for income tax purposes. The following table summarizes the consideration paid for TransFirst and the preliminary recognized amounts of the identifiable assets acquired and liabilities assumed on April 1, 2016 (the acquisition date) as of December 31, 2016. (in thousands) Consideration Cash $ Fair value of total consideration transferred $ Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ Accounts receivable, net Property, equipment and software Identifiable intangible assets Deferred tax asset Other assets Deferred tax liability Other liabilities Total identifiable net assets Goodwill Total identifiable assets acquired and liabilities assumed $ During 2016, there was a $55,000 increase in the purchase price due to the working capital adjustment required by the Purchase Agreement. In addition, there was a $2.0 million decrease in identifiable intangible assets, a $363,700 increase in liabilities and an $18.0 million increase in deferred tax liabilities that resulted in a net increase to goodwill of $20.4 million. The measurement period during which changes in assets, liabilities, equity interests, or items of consideration are subject to adjustment ends up to one year following the acquisition date. Identifiable intangible assets acquired in the TransFirst acquisition include merchant relationships, channel partners, current technology, the TransFirst trade name, non-compete agreements and a favorable lease. The identifiable intangible assets had no significant estimated residual value. These intangible assets are being amortized over their estimated useful lives of one to ten 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 $814.1 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 acquisition and the related estimated weighted average useful lives are as follows: (in millions) Fair Value Weighted Average (in years) Merchant relationships $ Channel partners Current technology Trade name Covenants not-to-compete Favorable lease Total acquired identifiable intangible assets $ The fair value measurement of the identifiable intangible assets represents Level 2 and Level 3 measurements as defined by GAAP. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 8.5%, (c) a pre-tax royalty rate range of 1%- 3%, (d) attrition rates of 11%- 16%, (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 $32.3 million in acquisition related costs primarily related to professional, legal and accounting costs, and integration expenses which are recorded in selling, general and administrative expenses and $9.8 million related to the bridge term loan facility, which is included in interest expense. These costs are expensed as incurred and are included on the income statement for the twelve months ended December 31, 2016. The Company recorded $1.3 billion of revenue and $30.0 million of operating income since the acquisition date that is included in the consolidated results through the twelve months ended December 31, 2016 as a result of the TransFirst acquisition. Pro Forma Results of Operations The following unaudited pro forma information shows the results of operations for the twelve months ended December 31, 2016 and December 31, 2015 as if the acquisition of TransFirst had occurred on January 1, 2015. The unaudited pro forma information reflects certain pro forma adjustments to the combined historical financial information of TSYS and TransFirst. The pro forma adjustments include incremental amortization and depreciation expense, incremental interest expense associated with new long-term debt, a reduction of revenues and operating expenses associated with contracts existing between the companies and the elimination of nonrecurring transaction costs directly related to the acquisition. Actual Supplemental pro forma Years Ended December 31, Years Ended December 31, 2016 2015 2016 2015 (in thousands, except per share data) Revenue $ Net income attributable to TSYS common shareholders $ Basic EPS attributable to TSYS common shareholders $ Diluted EPS attributable to TSYS common shareholders $ The unaudited pro forma financial information presented above does not purport to represent what the actual results of operations would have been if the acquisition of TransFirst’s operations had occurred prior to January 1, 2015, 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 the 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 TransFirst into TSYS. EMEA 2016 In March 2016, the Company completed the acquisition of the remaining 45% interest in TSYS Managed Services EMEA Limited (EMEA) from Merchants Limited. The Company acquired the outstanding stock from Merchants Limited for approximately £4.2 million, or $5.9 million, in cash. In connection with the purchase, the Company repaid the outstanding balance of the existing debt between EMEA and Merchants Limited of approximately £2.2 million, or $3.0 million. Netspend 2016 In 2016, TSYS adjusted the goodwill associated with the Netspend acquisition by $584,000 as a result of adjustments to the deferred tax assets acquired in the transaction. 2015 In September 2015, TSYS purchased certain assets for its Netspend segment for $750,000. The purchase qualifies as a business combination in accordance with GAAP. The Company recorded an acquisition technology intangible asset for the amount of the purchase price. This acquisition intangible asset represents software and is being amortized over a five year life. There were no other material assets included in the purchase. The acquisition included the employment of certain key employees which resulted in the transaction qualifying as a business combination. In 2015, the Company adjusted goodwill for Netspend to include an additional $627,000 for a change in deferred taxes associated with the acquisition. For more information, refer to Note 6. 2014 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 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. During 2014, TSYS paid $38.6 million to dissenting shareholders to settle the lawsuit. In 2014, the Company increased goodwill for Netspend by $8.5 million due to changes during the measurement period. Redeemable Noncontrolling Interest The fair value of the noncontrolling interest in CPAY, owned by CPC Holding Company, LLC, a California limited liability company, was based on the actual purchase price paid for the controlling interest in CPAY. Next, adjustments were made for lack of control and lack of marketability that market participants would consider when estimating the fair value of the noncontrolling, non-marketable interest in CPAY. In connection with the acquisition of CPAY, the Company is party to call and put arrangements with respect to the membership units that represent the remaining noncontrolling interest of CPAY. The call arrangement is exercisable by TSYS and the put arrangement is exercisable by the Seller. The put arrangement is outside the control of the Company by requiring the Company to purchase the Seller’s entire equity interest in CPAY at a put price at fair market value. At the time of the original acquisition, the redemption of the put option was considered probable based upon the passage of time of the second anniversary date. The put arrangement is recorded on the balance sheet and is classified as redeemable noncontrolling interest outside of permanent equity. In February 2014, the Company purchased an additional 15% equity interest in CPAY for $37.5 million, reducing its redeemable noncontrolling interest in CPAY to 25%. As a result of this transaction, the call and put arrangements for CPAY, representing 25% of its total outstanding equity interests, were extended and may now be exercised at the discretion of TSYS or the Seller on the third anniversary of the closing of the additional purchase and upon the recurrence of certain other specified events. The put option was not redeemable on December 31, 2016, but redemption was considered probable based upon the passage of time of the third anniversary date of the 2014 purchase of additional equity. As such, the Company has adopted the accounting policy to accrete changes in the redemption value over the period from the date of issuance to the earliest redemption date, which the Company believes to be in 2017. If the put option was redeemable as of December 31, 2016, the redemption value was estimated to be approximately $27.4 million. The Company did not accrete any changes to the redemption value as the balance as of December 31, 2016 exceeded the accretion fair value amount. |
Collaborative Arrangement
Collaborative Arrangement | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborative Arrangement | Note 24 Collaborative Arrangement TSYS has a 45% ownership interest in an enterprise jointly owned with two other entities which operates aircraft for the owners' internal use. The arrangement allows each entity access to the aircraft and each entity pays for its usage of the aircraft. Each quarter, the net operating costs of the enterprise are shared among the owners. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 25 Earnings Per Share The following table illustrates basic and diluted EPS under the guidance of GAAP for the years ended December 31, 2016, 2015 and 2014: 2016 2015 2014 (in thousands, except per share data) Common Common Common Basic EPS: Net income attributable to TSYS common shareholders $ $ $ Less income allocated to nonvested awards Net income allocated to common stock for EPS calculation(a) $ $ Average common shares outstanding(b) Basic EPS(a)/(b) $ $ $ Diluted EPS: Net income attributable to TSYS common shareholders $ $ $ Less income allocated to nonvested awards Add income allocated to nonvested awards 1 - - Net income allocated to common stock for EPS calculation(c) $ $ $ Average common shares outstanding Increase due to assumed issuance of shares related to common equivalent shares outstanding Average nonvested awards 1 - - Average common and common equivalent shares outstanding(d) Diluted EPS(c)/(d) $ $ $ 2016 2015 2014 (in thousands, except per share data) Participating Securities Participating Securities Participating Securities Basic EPS: Net income allocated to nonvested awards(a) $ Nonvested awards(b) Basic EPS(a)/(b) $ Diluted EPS: Net income allocated to nonvested awards(c) $ Average common and common equivalent shares outstanding(d) Diluted EPS(c)/(d) $ 1 In accordance with the diluted EPS guidance under the two-class method, the Company uses the approach – either the treasury stock method or the two-class method assuming a participating security is not exercised- that is more dilutive. In 2016, the Company used the two-class method. In 2015 and 2014, the Company used the treasury stock method. The diluted EPS calculation excludes stock options and nonvested awards that are exercisable into 0.4 million, 0.6 million and 1.1 million common shares for the years ended December 31, 2016, 2015 and 2014, respectively, because their inclusion would have been anti-dilutive. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 26 Subsequent Events On February 3, 2017, the Company acquired an additional 10% equity interest in CPAY from a privately-owned company for $70.0 million. This purchase reduced the remaining redeemable noncontrolling interest in CPAY to 15% of its total outstanding equity and extended the put call arrangement until April 2018. Management performed an evaluation of the Company’s activity as of the date these audited financial statements were issued, and has concluded that, other than as set forth above, there are no significant events requiring disclosure. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Schedule — Valuation and Qualifying Accounts TOTAL SYSTEM SERVICES, INC. Schedule II Valuation and Qualifying Accounts (in thousands) Additions Changes in Balance at allowances, charges to Balance at beginning expenses and changes end of period to other accounts Deductions of period Year ended December 31, 2014: Provision for doubtful accounts $ (1) (3) $ Provision for billing adjustments $ (1) (3) $ Provision for merchant losses $ (1) (3) $ Transaction processing provisions - processing errors $ (2) (3) $ Provision for fraud losses $ (4) (3) $ Deferred tax valuation allowance $ (5) (6) $ Year ended December 31, 2015: Provision for doubtful accounts $ (1) (3) $ Provision for billing adjustments $ (1) (3) $ Provision for merchant losses $ (1) (3) $ Transaction processing provisions - processing errors $ (2) (3) $ Provision for fraud losses $ (4) (3) $ Deferred tax valuation allowance $ (5) (6) $ Year ended December 31, 2016: Provision for doubtful accounts $ (1) (3) $ Provision for billing adjustments $ (1) (3) $ Provision for merchant losses $ (1) (3) $ Transaction processing provisions - processing errors $ (2) (3) $ Provision for fraud losses $ (4) (3) $ Deferred tax valuation allowance $ (5) (6) $ (1) Amount reflected includes charges to (recoveries of) bad debt expense which are classified in selling, general and administrative expenses and the charges for billing adjustment which are recorded against revenues. (2) Amount reflected is the change in transaction processing provisions reflected in cost of services expenses. (3) Accounts deemed to be uncollectible and written off during the year as it relates to bad debts. Amounts that relate to billing adjustments and transaction processing provisions reflect actual billing adjustments and processing errors charged against the allowances. Amounts that related to cardholder losses reflect write-offs against the provision for cardholder losses. (4) Amount represents the charges in the provision for cardholder losses reflected in cost of services expenses. (5) Amount represents an increase in the amount of deferred tax assets, which more likely than not, will not be realized. Amount represents a decrease in the amount of deferred tax assets, which more likely than not, will not be realized. |
Basis of Presentation and Sum36
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION | PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION: The accompanying consolidated financial statements, which are prepared in accordance with generally accepted accounting principles (GAAP) include the accounts of TSYS and its wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements. |
RISKS AND UNCERTAINTIES AND USE OF ESTIMATES | RISKS AND UNCERTAINTIES AND USE OF ESTIMATES: Factors that could affect the Company's future operating results and cause actual results to vary materially from expectations include, but are not limited to, lower than anticipated growth from existing clients, an inability to attract new clients and grow internationally, loss of a major customer or other significant client, loss of a major supplier, an inability to grow through acquisitions or successfully integrate acquisitions, an inability to control expenses, technology changes, the impact of the application of and/or changes in accounting principles, financial services consolidation, changes in regulatory requirements, a decline in the use of cards as a payment mechanism, disruption of the Company's international operations, breach of the Company's security systems, a decline in the financial stability of the Company's clients and uncertain economic conditions. Negative developments in these or other risk factors could have a material adverse effect on the Company's financial position, results of operations and cash flows. The Company has prepared the accompanying consolidated financial statements in conformity with U.S. GAAP. The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates and assumptions are developed based upon all information available. Actual results could differ from estimated amounts. |
ACQUISITIONS - PURCHASE PRICE ALLOCATION | ACQUISITIONS — PURCHASE PRICE ALLOCATION: TSYS' purchase price allocation methodology requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities. TSYS estimates the fair value of assets and liabilities based upon appraised market values, the carrying value of the acquired assets and widely accepted valuation techniques, including the cost approach, discounted cash flows and market multiple analyses. Management determines the fair value of fixed assets and identifiable intangible assets such as developed technology or customer relationships, and any other significant assets or liabilities. TSYS adjusts the purchase price allocation, as necessary, up to one year after the acquisition closing date as TSYS obtains more information regarding asset valuations and liabilities assumed. Unanticipated events or circumstances may occur which could affect the accuracy of the Company's fair value estimates, including assumptions regarding industry economic factors and business strategies, and may result in an impairment or a new allocation of purchase price. TSYS may allocate part of the purchase price of future acquisitions to contingent consideration as required by GAAP for business combinations. The fair value calculation of contingent consideration will involve a number of assumptions that are subjective in nature and which may differ significantly from actual results. TSYS may experience volatility in its earnings to some degree in future reporting periods as a result of these fair value measurements. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS: Cash on hand and investments with a maturity of three months or less when purchased are considered to be cash equivalents. |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE: Accounts receivable balances are stated net of allowances for doubtful accounts and billing adjustments. TSYS records an allowance for doubtful accounts when it is probable that the accounts receivable balance will not be collected. When estimating the allowance for doubtful accounts, the Company takes into consideration such factors as its day-to-day knowledge of the financial position of specific clients, the industry and size of its clients, the overall composition of its accounts receivable aging, prior history with specific customers of accounts receivable write-offs and prior experience of allowances in proportion to the overall receivable balance. This analysis includes an ongoing and continuous communication with its largest clients and those clients with past due balances. A financial decline of any one of the Company's large clients could have a material adverse effect on collectability of receivables and thus the adequacy of the allowance for doubtful accounts. Increases in the allowance for doubtful accounts are recorded as charges to bad debt expense and are reflected in selling, general and administrative expenses in the Company's Consolidated Statements of Income. Write-offs of uncollectible accounts are charged against the allowance for doubtful accounts. TSYS records an allowance for billing adjustments for actual and potential billing discrepancies. When estimating the allowance for billing adjustments, the Company considers its overall history of billing adjustments, as well as its history with specific clients and known disputes. Increases in the allowance for billing adjustments are recorded as a reduction of revenues in the Company's Consolidated Statements of Income and actual adjustments to invoices are charged against the allowance for billing adjustments. |
UP-FRONT DISTRIBUTOR PAYMENTS | UP-FRONT DISTRIBUTOR PAYMENTS: The Company makes up-front contractual payments to third-party distribution partners. The Company assesses each up-front payment to determine whether it meets the criteria of an asset as defined by U.S. GAAP. If these criteria are met, the Company capitalizes the up-front payment and recognizes the capitalized amount as expense ratably over the benefit period, which is generally the contract period. If the contract requires the distributor to perform specific acts (i.e., achieve a sales goal) and no other conditions exist for the distributor to earn or retain the up-front payment, then the Company capitalizes the payment and recognizes it as an expense when the performance conditions have been met. Up-front distributor payments are classified on the Consolidated Balance Sheet as other non-current assets and recorded as a cost of services in the Consolidated Statements of Income. |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT: Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over estimated useful lives of 5-40 years, computer and other equipment over estimated useful lives of 2-5 years, and furniture and other equipment over estimated useful lives of 3-15 years. The Company evaluates impairment losses on long-lived assets used in operations in accordance with the provisions of GAAP. All ordinary repairs and maintenance costs are expensed as incurred. Maintenance costs that extend the asset life are capitalized and amortized over the remaining estimated life of the asset. |
LICENSED COMPUTER SOFTWARE | LICENSED COMPUTER SOFTWARE: The Company licenses software that is used in providing services to clients. Licensed software is obtained through perpetual licenses, term licenses, site licenses and through agreements based on processing capacity. Perpetual and site licenses are amortized using the straight-line method over their estimated useful lives which range from three to ten years. Term licenses are amortized over the term of the agreement. Mainframe software that is licensed based on processing capacity is amortized using a units-of-production basis over the estimated useful life of the software, generally not to exceed ten years. At each balance sheet date, the Company evaluates impairment losses on long-lived assets used in operations in accordance with GAAP. |
ACQUISITION TECHNOLOGY INTANGIBLES | ACQUISITION TECHNOLOGY INTANGIBLES: These identifiable intangible assets are software technology assets resulting from acquisitions. These assets are amortized using the straight-line method over periods not exceeding their estimated useful lives, which range from five to nine years. GAAP requires that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment. Acquisition technology intangibles’ net book values are included in computer software, net in the accompanying balance sheets. Amortization expenses are charged to cost of services in the Company's Consolidated Statements of Income. |
SOFTWARE DEVELOPMENT COSTS | SOFTWARE DEVELOPMENT COSTS: Software development costs are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. In evaluating software development costs for recoverability, expected cash flows are estimated by management should events indicate a loss may have been triggered. The Company evaluates the unamortized capitalized costs of software development, the impairment of which is determined by expected undiscounted future operating cash flows of the software as compared to the carrying amount of the software product. The amount by which the unamortized software development costs exceed the lower of the carrying amount or fair value is written off in the period that such determination is made. If the actual cash flows are not consistent with the Company's estimates, a material write-off may result and net income may be materially different than was initially recorded. Assumptions and estimates about future cash flows and remaining useful lives of software are complex and subjective. They can be affected by a variety of factors, including industry and economic trends, changes in the Company’s business strategy and changes in the internal forecasts. The amount by which the unamortized software development costs exceed the net realizable value is written off in the period that such determination is made. Software development costs are amortized using the straight-line method over its estimated useful life, which ranges from three to ten years. The Company also develops software that is used internally. These software development costs are capitalized in accordance with GAAP. Internal-use software development costs are capitalized once: (1) the preliminary project stage is completed, (2) management authorizes and commits to funding a computer software project, and (3) it is probable that the project will be completed and the software will be used to perform the function intended. Costs incurred prior to meeting the qualifications are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. Internal-use software development costs are amortized using the straight-line method over its estimated useful life which ranges from three to ten years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of the planned project becoming doubtful or due to technological obsolescence of the planned software product. |
CONTRACT ACQUISITION COSTS | CONTRACT ACQUISITION COSTS: The Company capitalizes contract acquisition costs related to signing or renewing long-term contracts and costs related to cash payments for rights to provide processing services. The Company capitalizes internal conversion costs in accordance with GAAP. All costs incurred prior to a signed agreement are expensed as incurred. Contract acquisition costs are amortized using the straight-line method over the expected customer relationship (contract term) beginning when the client's cardholder accounts are converted and producing revenues. The amortization of contract acquisition costs associated with cash payments for client incentives is included as a reduction of revenues in the Company's Consolidated Statements of Income. The amortization of contract acquisition costs associated with conversion activity is recorded as cost of services in the Company's Consolidated Statements of Income. In evaluating contract acquisition costs for recoverability, expected cash flows are estimated by management should events indicate a loss may have been triggered. The Company evaluates the carrying value of contract acquisition costs associated with each customer for impairment on the basis of whether these costs are fully recoverable from either contractual minimum fees (conversion costs) or from expected undiscounted net operating cash flows of the related contract (cash incentives paid). The determination of expected undiscounted net operating cash flows requires management to make estimates. If the actual cash flows are not consistent with the Company's estimates, a material impairment charge may result and net income may be materially different than was initially recorded. These costs may become impaired with the loss of a contract, the financial decline of a client, termination of conversion efforts after a contract is signed, diminished prospects for current clients or if the Company's actual results differ from its estimates of future cash flows. The amount of the impairment is written off in the period that such a determination is made. |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS: TSYS' 49% investment in Total System Services de México, S.A. de C.V. (TSYS de México), an electronic payment processing support operation located in Toluca, México, is accounted for using the equity method of accounting, as is TSYS' 44.56% investment in China UnionPay Data Co., Ltd. (CUP Data) headquartered in Shanghai, China. TSYS' equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments. |
GOODWILL | GOODWILL: Goodwill results from the excess of cost over the fair value of net assets of businesses acquired. Goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values. Equity investment goodwill, which is not reported as goodwill in the Company's Consolidated Balance Sheet, but is reported as a component of the equity investment, was $46.1 million as of December 31, 2016. |
OTHER INTANGIBLE ASSETS | OTHER INTANGIBLE ASSETS: Identifiable intangible assets relate primarily to customer relationships, databases, channel relationships, covenants-not-to-compete, trade names and trade associations resulting from acquisitions. These identifiable intangible assets are amortized using the straight-line method over periods not exceeding the estimated useful lives, which range from three to ten years. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with GAAP. Amortization expenses are charged to selling, general and administrative expenses in the Company's Consolidated Statements of Income. |
FAIR VALUES OF FINANCIAL INSTRUMENTS | FAIR VALUES OF FINANCIAL INSTRUMENTS: The Company uses financial instruments in the normal course of its business. The carrying values of cash equivalents, accounts receivable, accounts payable, accrued salaries and employee benefits, and other current liabilities approximate their fair value due to the short-term maturities of these assets and liabilities. The fair value of the Company's long-term debt and obligations under capital leases is not significantly different from its carrying value. Investments in equity method investments are accounted for using the equity method of accounting and pertain to privately held companies. The Company believes the fair values of its investments in equity method investments exceed their respective carrying values. |
IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS: The Company reviews long-lived assets, such as property and equipment and intangibles subject to amortization, including contract acquisition costs and certain computer software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If upon a triggering event the Company determines that the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. |
TRANSACTION PROCESSING PROVISIONS | TRANSACTION PROCESSING PROVISIONS: The Company has recorded an accrual for contract contingencies (performance penalties) and processing errors. A significant number of the Company's contracts with large clients contain service level agreements which can result in TSYS incurring performance penalties if contractually required service levels are not met. When providing for these accruals, the Company takes into consideration such factors as the prior history of performance penalties and processing errors incurred, actual contractual penalties inherent in the Company's contracts, progress towards milestones and known processing errors not covered by insurance. As of December 31, 2016, the Company had transaction processing provisions of $2.9 million. These accruals are included in other current liabilities in the accompanying Consolidated Balance Sheets. Increases and decreases in transaction processing provisions are charged to cost of services in the Company's Consolidated Statements of Income, and payments or credits for performance penalties and processing errors are charged against the accrual. |
PROVISION FOR CARDHOLDER LOSSES | PROVISION FOR CARDHOLDER LOSSES: 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 and services. These reserves are established based upon historical loss and recovery rates and cardholder activity for which specific losses can be identified. The provision for cardholder losses was approximately $10.5 million as of December 31, 2016. The charges to provisions for cardholder losses are included in cost of services in the Consolidated Statements of Income and other current liabilities in the Consolidated Balance Sheets. The Company regularly updates its reserve estimate as new facts become known and events occur that may impact the settlement or recovery of losses. |
PROVISION FOR MERCHANT LOSSES | PROVISION FOR MERCHANT LOSSES: The Company has potential liability for losses resulting from disputes between a cardholder and a merchant that arise as a result of, among other things, the cardholder's dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant's favor. In these cases, the transaction is "charged back" to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. If the merchant is unable to fund the refund, TSYS must do so. TSYS also bears the risk of reject losses arising from the fact that TSYS collects fees from its merchants after the monthly billing period. If the merchant has gone out of business during such period, TSYS may be unable to collect such fees. TSYS maintains cash deposits or requires the pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. Most chargeback and reject losses are charged to cost of services as they are incurred. However, the Company also maintains a provision against losses, including major fraud losses, which are both less predictable and involve larger amounts. The loss provision was established using historical loss rates, applied to recent bankcard processing volume. As of December 31, 2016, the Company had a merchant loss provision in the amount of $2.0 million. |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST: In connection with the acquisition of Central Payment Co., LLC (CPAY), the Company is party to call and put arrangements with respect to the membership units that represent the remaining noncontrolling interest of CPAY. The call arrangement is exercisable by TSYS and the put arrangement is exercisable by the seller. The put arrangement is outside the control of the Company by requiring the Company to purchase the seller’s entire equity interest in CPAY at a put price at fair value. The put arrangement is recorded on the balance sheet and is classified as redeemable noncontrolling interest outside of permanent equity. |
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION: The Company maintains several different foreign operations whose functional currency is their local currency. Foreign currency financial statements of the Company's Mexican and Chinese equity investments, the Company's wholly owned subsidiaries and the Company's majority owned subsidiaries, as well as the Company's division and branches in the United Kingdom and China, are translated into U.S. dollars at current exchange rates, except for revenues, costs and expenses, and net income which are translated at the average exchange rates for each reporting period. Net gains or losses resulting from the currency translation of assets and liabilities of the Company's foreign operations, net of tax when applicable, are accumulated in a separate section of shareholders' equity titled accumulated other comprehensive income (loss). Gains and losses on transactions denominated in currencies other than the functional currencies are included in determining net income for the period in which exchange rates change. |
TREASURY STOCK | TREASURY STOCK: The Company uses the cost method when it purchases its own common stock as treasury shares or issues treasury stock upon option exercises and displays treasury stock as a reduction of shareholders' equity. |
REVENUE RECOGNITION | REVENUE RECOGNITION: Revenue is recognized when it is realized or realizable and earned, which is deemed to occur when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience. The Company's North America and International Services revenues are derived from long-term processing contracts with financial and nonfinancial institutions and are generally recognized as the services are performed. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements mailed, cards embossed and mailed and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual revenue minimums, penalties for early termination, and service level agreements which may impact contractual fees if certain service levels are not achieved. Revenue is recognized as the services are performed, primarily on a per unit basis. Processing contracts generally range from three to ten years in length. When providing payment processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, web-based services, and other payment processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract. The Company’s Merchant Services revenues are partially derived from relationships with thousands of individual merchants. Additionally, part of the revenues are derived from long-term processing contracts with large financial institutions, other merchant acquirers and merchant organizations which generally range from three to eight years and provide for penalties for early termination. Merchant services revenue is generated primarily from processing all payment forms including credit, debit and electronic benefits transfer for merchants of all sizes across a wide array of retail market segments. The products and services offered include authorization and capture of electronic transactions, clearing and settlement of electronic transactions, information reporting services related to electronic transactions, merchant billing services, and point-of-sale terminal services. Revenue is recognized for merchant services as those services are performed, primarily measured on a per unit basis. When providing merchant processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, terminal services, and other merchant processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract. Revenues on point-of-sale terminal equipment are recognized upon the transfer of ownership and shipment of product. With the acquisition of TransFirst Holdings Corp. (TransFirst) on April 1, 2016, TSYS included TransFirst’s results as part of the Merchant Services segment. TransFirst’s revenues are reported gross, which includes amounts paid for interchange and assessments, as TransFirst is the principal in the contractual relationship with its customers. Expenses covering interchange and assessment fees are included in TransFirst’s cost of services and are directly attributable to processing fee revenues and are recognized in the same period as the related revenue. When a sale involves multiple deliverables, revenue recognition is affected by the determination of the number of deliverables in an arrangement, whether those deliverables may be separated into multiple units of accounting, and the standalone selling price of each unit of accounting which affects the amount of revenue allocated to each unit. Pursuant to Accounting Standards Codification (ASC) 605, the Company uses vendor-specific objective evidence of the standalone selling price (VSOE) of its services when it exists to determine the amount of revenue to allocate to each unit of accounting. The Company establishes VSOE using the price charged when the same service is sold separately (on a standalone basis). In certain situations, the Company does not have sufficient VSOE. In these situations, TSYS considers whether sufficient third party evidence (TPE) of standalone selling price exists for the Company’s services. However, the Company typically is not able to determine TPE and has not used this measure of selling price due to the unique and proprietary nature of some of its services and the inability to reliably verify relevant standalone third party prices. When there is insufficient evidence of VSOE and TPE, the Company has made its best estimate of the standalone selling price (ESP) of that service for purposes of allocating revenue to each unit of accounting. When determining ESP, TSYS uses limited standalone sales data that do not meet the Company’s criteria to establish VSOE, management pricing strategies, residual selling price data when VSOE exists for a group of elements, the cost of providing the services and the related margin objectives. Consideration is also given to geographies in which the services are sold or delivered, customer classifications, and market conditions including competitor pricing strategies and benchmarking studies. Revenue is recognized when the revenue recognition criteria for each unit of accounting have been met. As business and service offerings change in the future, the determination of the number of deliverables in an arrangement and related units of accounting and the future pricing practices may result in changes in the estimates of VSOE and ESP, which may change the ratio of fees allocated to each service or unit of accounting in a given customer arrangement. There were no material changes or impact to revenue for current contractual arrangements during the years ended December 31, 2016, 2015 and 2014 due to any changes in the determination of the number of deliverables in an arrangement, units of accounting, or estimates of VSOE or ESP. In many situations, the Company enters into arrangements with customers to provide conversion or implementation services in addition to processing services where the conversion or implementation services do not have standalone value. For these arrangements, conversion or implementation services that do not have standalone value, are recognized over the expected customer relationship (contract term) as the related processing services are performed. The Company’s other services generally have standalone value and constitute separate units of accounting for revenue recognition purposes. Customer arrangements entered into prior to 2011 (prior to the adoption of Accounting Standards Update (ASU) 2009-13 “ Multiple-Deliverable Revenue Arrangements, ” an update to ASC Topic 605 “ Revenue Recognition, ” and formerly known as EITF 08-1, “ Revenue Arrangements with Multiple Deliverables ”) often included services for which sufficient objective and reliable evidence of fair value did not exist. In these situations, the deliverables were combined and recognized as a single unit of accounting based on the proportional performance for the combined unit. For pre-2011 arrangements that have not expired, have not been materially modified or amended, or terminated, the Company continues to recognize revenue in accordance with these policies in the accompanying financial statements. Beginning in 2011, services in new or materially modified arrangements of this nature were divided into separate units of accounting and revenue is now allocated to each unit of accounting based on the relative selling price method as disclosed above. As the services in the pre-2011 arrangements are generally delivered over the same term with consistent patterns of performance, there is no material difference in the timing or pattern of revenue recognition for each group of arrangements (pre-2011 arrangements and those new or materially modified thereafter). The Company’s multiple element arrangements may include one or more elements that are subject to other topics including software revenue recognition and leasing guidance. The consideration for these multiple element arrangements is allocated to each group of deliverables – those subject to ASC 605-25 and those subject to other topics based on the revised guidance in ASU 2009-13. Arrangement revenue for each group of deliverables is then further separated, allocated, and recognized based on applicable guidance. The Company’s Netspend revenues principally consist of a portion of the service fees and interchange revenues received by the Issuing Banks in connection with the programs Netspend manages. Revenue is recognized when there is persuasive evidence of an arrangement, the relevant services have been rendered, the price is fixed or determinable and collectability is reasonably assured. Cardholders are charged fees in connection with Netspend’s products and services as follows: · Transactions - Cardholders are typically charged a fee for each PIN and signature-based purchase transaction made using their GPR cards, unless the cardholder is on a monthly or annual service plan, in which case the cardholder is instead charged a monthly or annual subscription fee, as applicable. Cardholders are also charged fees for ATM withdrawals and other transactions conducted at ATMs. · Customer Service and Maintenance - Cardholders are typically charged fees for balance inquiries made through Netspend’s call centers. Cardholders are also charged a monthly maintenance fee after a specified period of inactivity. · Additional Products and Services - Cardholders are charged fees associated with additional products and services offered in connection with certain GPR cards, including the use of overdraft features, a variety of bill payment options, custom card designs and card-to-card transfers of funds initiated through the call centers. · Other - Cardholders are charged fees in connection with the acquisition and reloading of the GPR cards at retailers and the Company receives a portion of these amounts in some cases. Revenue resulting from the service fees charged to the cardholders described above is recognized when the fees are charged because the earnings process is substantially complete, except for revenue resulting from the initial activation of cards and annual subscription fees. Revenue resulting from the initial activation of cards is recognized ratably, net of commissions paid to distributors, over the average account life, which is approximately six months for GPR cards. Revenue resulting from annual subscription fees is recognized ratably over the annual period to which the fees relate. Revenues also include fees charged in connection with program management and processing services the Company provides for private-label programs. Revenue resulting from these fees is recognized when the Company has fulfilled its obligations under the underlying service agreements. Netspend derives revenue from a portion of the interchange fees remitted by merchants when cardholders make purchases using their GPR cards. Subject to applicable law, interchange fees are fixed by the card associations and network organizations (Networks). Interchange revenue is recognized net of sponsorship, licensing and processing fees charged by the Networks for services they provide in processing purchase transactions routed through them. Interchange revenue is recognized during the period that the purchase transactions occur. Also included in interchange revenue are fees earned from branding agreements with the Networks. In regards to taxes assessed by a governmental authority imposed directly on a revenue producing transaction, the Company reports its revenues on a net basis. |
REIMBURSABLE ITEMS | REIMBURSABLE ITEMS: Reimbursable items consist of out-of-pocket expenses which are reimbursed by the Company's clients. These expenses consist primarily of postage, access fees and third party software. |
INTERCHANGE AND ASSESSMENTS | INTERCHANGE AND ASSESSMENTS: Interchange and assessment fees are charged by the card associations or payment networks . Depending upon the transaction type, the fees are a percentage of the transaction’s dollar value, a fixed amount, or a combination of the two methods. |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION: GAAP establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity's equity instruments or that may be settled by the issuance of those equity instruments. A public entity must measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award. The Company estimates forfeitures when recognizing compensation cost. The estimate of forfeitures will be adjusted by the Company as actual forfeitures differ from its estimates, resulting in compensation cost only for those awards that actually vest. The effect of the change in estimated forfeitures is recognized as compensation costs in the period the change in estimate occurred. In estimating its forfeiture rate, the Company stratified its data based upon historical experience to determine separate forfeiture rates for the different award grants. The Company currently estimates a forfeiture rate for existing stock option grants to TSYS non-executive employees, and other TSYS share-based awards. Currently, TSYS estimates a forfeiture rate in the range of 0% for executive level employees and up to 8% for other employees. The Company has issued its vested awards to directors and nonvested awards to certain employees. The market value of the common stock at the date of issuance is recognized as compensation expense immediately for vested awards and over the vesting period of the nonvested awards. For nonvested award grants that have pro rata vesting, the Company recognizes compensation expense using the straight-line method over the vesting period of the award. |
LEASES | LEASES: The Company is obligated under noncancelable leases for computer equipment, software and facilities. As these leases expire, they will be evaluated and renewed or replaced by similar leases based on need. A lease is an agreement conveying the right to use specified property, software or equipment (land and/or depreciable assets) usually for a stated period of time. For purposes of applying the accounting and reporting standards, leases are classified from the standpoint of the lessee as capital or operating leases. Rental payments on operating leases are charged to expense over the lease term. If rental payments are not made on a straight-line basis, rental expense nevertheless shall be recognized on a straight-line basis unless another systematic and rational basis is more representative of the time pattern in which use benefit is derived from the leased property, in which case that basis shall be used. Certain of the Company's operating leases are for office space. The Company will make various alterations (leasehold improvements) to the office space and capitalize these costs as part of property and equipment. Leasehold improvements are amortized on a straight-line basis over the useful life of the improvement or the term of the lease, whichever is shorter. |
ADVERTISING | ADVERTISING: Advertising costs are expensed as incurred or the first time the advertising takes place except for direct-response advertising and television advertising production costs. Direct-response advertising consists of commission paid to affiliate marketers for the new funded customer accounts generated by them. Direct-response advertising costs are capitalized and amortized over the average life of the new accounts, which is approximately one year. Television advertising production costs consist of the costs of developing and filming television ads. Television advertising production costs are capitalized when the production services are received and expensed in the period when the advertising first takes place. Advertising expense for 2016, 2015 and 2014 was $11.5 million, $9.6 million and $5.7 million, respectively. |
INCOME TAXES | INCOME TAXES: Income taxes reflected in TSYS' consolidated financial statements are computed based on the taxable income of TSYS and its affiliated subsidiaries. A consolidated U.S. federal income tax return is filed for TSYS and its majority- owned U.S. subsidiaries. Additionally, income tax returns are also filed in states where TSYS and its subsidiaries have filing obligations and in foreign jurisdictions where TSYS has a foreign affiliate. The Company accounts for income taxes in accordance with the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Reserves against the carrying value of a deferred tax asset are established when necessary to reflect the decreased likelihood of realization of a deferred asset in the future. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Income tax provisions require the use of management judgments, which are subject to challenge by various taxing authorities. Contingency reserves are periodically established where the amount of the contingency can be reasonably determined and is likely to occur. Reductions in contingency reserves are recognized when tax disputes are settled or examination periods lapse. Significant estimates used in accounting for income taxes relate to the determination of taxable income, the determination of temporary differences between book and tax basis, as well as estimates on the realizability of tax credits and net operating losses. TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the Consolidated Statements of Income. |
NONCONTROLLING INTEREST | NONCONTROLLING INTEREST: Noncontrolling interests in earnings of subsidiaries represents the minority shareholders' share of the net income or loss of TSYS Managed Services EMEA Limited (EMEA) and CPAY. The noncontrolling interests in the Consolidated Balance Sheet reflects the original investment by these shareholders in EMEA and CPAY, their proportional share of the earnings or losses and their proportional share of net gains or losses resulting from the currency translation of assets and liabilities of EMEA and CPAY. In March 2016, the Company acquired the remaining interest in EMEA. Refer to Note 23 for more information on acquisitions. |
EARNINGS PER SHARE | EARNINGS PER SHARE: Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are "participating securities" as defined by GAAP, and therefore should be included in EPS using the two-class method. The two-class method is an earnings allocation method for computing EPS when an entity's capital structure includes two or more classes of common stock or common stock and participating securities. It determines EPS based on dividends declared on common stock and participating securities and participation rights of participating securities in any undistributed earnings. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised. Diluted EPS is calculated by dividing net income by weighted average common and common equivalent shares outstanding. Common equivalent shares are calculated using the treasury stock method. |
RECLASSIFICATIONS | RECLASSIFICATIONS: Certain reclassifications have been made to the 2015 and 2014 financial statements to conform to the presentation adopted in 2016. The most significant changes include the reclass of debt issuance costs from assets to contra-liability accounts offsetting the associated debt and the reclassification of deferred income tax assets and liabilities from current to noncurrent in connection with the adoption of new accounting standards. |
Recent Revenue Recognition Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company adopted the following Accounting Standards Updates (ASUs) on January 1, 2016: ASU 2015-17 “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ” requires the classification of all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. Also, companies will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances also will be classified as noncurrent. The Company early adopted this ASU resulting in $24.7 million of current net deferred tax assets as of December 31, 2015 being moved to noncurrent. The guidance was applied retrospectively. The adoption of this ASU did not have a material impact on the Company’s results of operations or cash flows. ASU 2015-16 “ Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments ” eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows. ASU 2015-15 “ Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting ” and ASU 2015-03 “ Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ” require entities to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability, consistent with debt discounts, and allow entities to defer and present debt issuance costs associated with a line-of-credit as an asset and subsequently amortize deferred debt issuance costs ratably over the term of a line-of-credit arrangement. The guidance was applied retrospectively. The adoption of this guidance resulted in $6.4 million of debt issuance costs as of December 31, 2015 being moved from noncurrent assets on the Company’s balance sheet to liabilities that offset both the current and noncurrent portions of the debt which these costs are associated as of December 31, 2016. The Company continues to include debt issuance costs associated with a line-of-credit in its noncurrent assets. The adoption of this guidance did not have a material impact on the Company’s results of operations or cash flows. ASU 2015-05 “ Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement ” provides guidance about whether a cloud computing arrangement includes a software license or a service agreement. The Company adopted this ASU on a prospective basis. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows. ASU 2015-01 “ Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items ” eliminates from GAAP the concept of extraordinary items. The adoption of this ASU did not have a material impact on the financial position, results of operations or cash flows of the Company. Recent Accounting Pronouncements In December 2016, the FASB issued ASU 2016-19 “ Technical Corrections,” which represent changes to clarify, correct errors or make minor improvements to the ASC. Most of the amendments in this Update do not require transition guidance and are effective upon issuance of this Update. Six amendments in this Update clarify guidance or correct references in the ASC that could potentially result in changes in current practice because of either misapplication or misunderstanding of current guidance. Early adoption is permitted for the amendments that require transition guidance. The Company will be impacted by the amendment to Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software , which adds a reference to guidance to use when accounting for internal-use software licensed from third parties that is within the scope of Subtopic 350-40. The transition guidance for that amendment is the same as the transition guidance in ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement ,” to which the amendment relates. The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial position, results of operations or cash flows. In November 2016, the FASB issued ASU 2016-18 “ Statement of Cash Flows (Topic 230): Restricted Cash, ” which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The ASU is effective for the Company on January 1, 2018. The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial position, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-09 “ Improvements to Employee Share ‑ Based Payment Accounting, ” which simplifies several aspects of the accounting for employee share ‑ based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. The adoption of this ASU will result in excess tax benefits and deficiencies associated with share-based payments being recorded on the income statement at the time they are deducted on the income tax return instead of being recorded in additional paid-in capital. The excess tax benefits are recorded along with other income tax cash flows as an operating activity in the statement of cash flows. The Company will adopt this ASU on January 1, 2017. The Company has reviewed this standard, noting adoption of the standard will result in a benefit to the income tax provision and an immaterial dilutive effect on diluted EPS. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” ASU 2016-02 introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the FASB’s new revenue recognition standard. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than twelve months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new guidance will be effective for the Company on January 1, 2019 with early adoption permitted. The Company expects to adopt the new standard on its effective date.The Company expects the standard will have a material effect on the its financial statements. At December 31, 2016, the Company had approximately $472.8 million of operating leases that would be recorded on the balance sheet if the standard was already effective. The Company has not determined the remaining effect on its ongoing financial reporting for adoption of this ASU. The Company expects to elect all of the available practical expedients on adoption. Recent Revenue Recognition Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 “ Revenue from Contracts with Customers ,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The FASB has issued several additional ASUs since this time that add additional clarification to certain issues existing after the original ASU was released. All of the new standards are effective for the Company on January 1, 2018, with early adoption permitted no sooner than January 1, 2017. The standards permit the use of either the retrospective or cumulative effect transition method. The Company has not determined the effect on its ongoing financial reporting for adoption of these ASUs. The Company is reviewing the requirements of the new revenue standard, and amendments described below, while following activities of the FASB and the American Institute of Certified Public Accountants (AICPA) for certain interpretive guidance applicable to IT outsourcers and payment processors. The Company is evaluating customer contracts under the new standard for each type of significant revenue stream (and related costs) identified to evaluate differences from current accounting. TSYS plans to adopt ASU 2014-09, as well as all other clarifications and technical guidance issued by the FASB and AICPA related to this new revenue standard, on January 1, 2018 using the modified retrospective transition method. Such adoption method may result in an adjustment to the opening balance of retained earnings (or other appropriate components of net assets in the statement of financial position) for the cumulative effect, if any, of applying the standard to contracts that are not completed on January 1, 2018. Under the modified retrospective transition method, the Company is required to disclose the impact of changes to financial statement line items due to the application of the new revenue standard, including an explanation of the reasons for any significant changes. The new standard could change the amount and timing of revenue and costs for certain significant revenue streams, increase areas of judgment and related internal controls requirements, change the presentation of revenue for certain contract arrangements and possibly require changes to the Company’s software systems to assist in both internally capturing accounting differences and externally reporting such differences through enhanced disclosure requirements. In March 2016, the FASB issued ASU 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," which improves the operability and understandability of the implementation guidance on principal versus agent considerations by providing indicators as to which party controls the good or service provided to a customer (the principal). In April 2016, the FASB issued ASU 2016-10 “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” which clarifies two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. In May 2016, the FASB issued ASU 2016-12 “ Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients, ” which affects only the following narrow aspects of Topic 606: Assessing the Collectability Criterion; Presentation of Sales and Other Taxes Collected from Customers; Noncash Consideration; Contract Modification at Transition; Completed Contracts at Transition; and Technical Correction. In December 2016, the FASB issued ASU 2016-20 “ Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, ” which affects only the following narrow aspects of Topic 606: Disclosure of Remaining Performance Obligations as it relates to entities such as processors which may not be required to estimate revenue under ASU 2014-09 due to direct allocation of variable consideration; Disclosure of Prior - Period Performance Obligations; Loan Guarantee Fees; Contract Costs - Impairment Testing; Contract Costs - Interaction of Impairment Testing with Guidance in Other Topics; Provisions for Losses on Construction - Type and Production Type Contracts; Contracts within the scope of Topic 944 (insurance)are excluded from the scope of Topic 606; Contract Modifications; Contract Asset versus Receivable; Refund Liability; Advertising Costs; Fixed - Odds Wagering Contracts in the Casino Industry. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Financial Results for Discontinued Operations | (in thousands) 2015 2014 Total revenues $ - Income before taxes $ - Income tax benefit $ - Income from operating activities of discontinued operations, net of tax $ - Gain on dispositions, net of tax $ Income from discontinued operations, net of tax $ Income from discontinued operations, net of tax, attributable to noncontrolling interest $ - Income from discontinued operations, net of tax, attributable to TSYS common shareholders $ |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalent Balances | (in thousands) 2016 2015 Cash and cash equivalents in domestic accounts $ Cash and cash equivalents in foreign accounts Total $ |
Prepaid Expenses and Other Cu39
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Significant Components of Prepaid Expenses and Other Current Assets | (in thousands) 2016 2015 Prepaid expenses $ Supplies inventory Income taxes receivable - Other Total $ |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross Amount and Accumulated Impairment Loss of Goodwill | 2016 (in thousands) North America International Merchant Netspend Consolidated Gross amount $ $ Accumulated impairment losses - Goodwill, net $ $ 2015 North America International Merchant Netspend Consolidated Gross amount $ $ Accumulated impairment losses - Goodwill, net $ $ |
Changes in Carrying Amount of Goodwill | (in thousands) North America International Merchant Netspend Consolidated Balance as of December 31, 2014 $ $ Netspend tax adjustment - - - Currency translation adjustments - - - Balance as of December 31, 2015 $ $ Netspend tax adjustment - - - TransFirst acquisition - - - Currency translation adjustments - - - Balance as of December 31, 2016 $ $ |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) - Other intangible assets | 12 Months Ended |
Dec. 31, 2016 | |
Significant Components of Contract Acquisition Costs, Net of Accumulated Amortization | 2016 (in thousands) Gross Accumulated Net Merchant relationships $ $ Channel relationships Customer relationships Trade name Covenants-not-to-compete Database Trade association Favorable lease Total $ $ 2015 (in thousands) Gross Accumulated Net Channel relationships $ $ Customer relationships Trade name Covenants-not-to-compete Database Trade association Favorable lease Total $ $ |
Weighted Average Useful Life | The weighted average useful life for each component of other intangible assets, and in total, as of December 31, 2016 is as follows: Weighted Average Merchant relationships Channel relationships Customer relationships Trade name Covenants-not-to-compete Database Trade association Favorable lease Total |
Estimated Future Amortization Expense | (in thousands) 2017 $ 2018 2019 2020 2021 |
Computer Software, Net (Tables)
Computer Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Amortization Expense Related to Computer Software | (in thousands) 2016 2015 2014 Amortization expense related to: Licensed computer software $ Software development costs Acquisition technology intangibles |
Computer Software, Intangible Asset | |
Significant Components of Contract Acquisition Costs, Net of Accumulated Amortization | (in thousands) 2016 2015 Licensed computer software $ Software development costs Acquisition technology intangibles Total computer software Less accumulated amortization: Licensed computer software Software development costs Acquisition technology intangibles Total accumulated amortization Computer software, net $ |
Weighted Average Useful Life | Weighted Average Licensed computer software Software development costs Acquisition technology intangibles Total |
Estimated Future Amortization Expense | (in thousands) Licensed Computer Software Development Acquisition Technology 2017 $ 2018 2019 2020 2021 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Computer Software, Intangible Asset | |
Asset Under Capital Lease | (in thousands) 2016 2015 Licensed computer software $ Accumulated amortization Licensed computer software, net $ |
Property, Plant and Equipment | |
Asset Under Capital Lease | (in thousands) 2016 2015 Computer and other equipment $ Furniture and other equipment Total equipment Less accumulated depreciation: Computer and other equipment Furniture and other equipment Total accumulated depreciation Total equipment, net $ |
Property and Equipment Balances | (in thousands) 2016 2015 Computer and other equipment $ Buildings and improvements Furniture and other equipment Land Other Total property and equipment Less accumulated depreciation and amortization Property and equipment, net $ |
Contract Acquisition Costs, N44
Contract Acquisition Costs, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Amortization Expense Related to Computer Software | (in thousands) 2016 2015 2014 Amortization expense related to: Licensed computer software $ Software development costs Acquisition technology intangibles |
Contract Acquisition Costs | |
Significant Components of Contract Acquisition Costs, Net of Accumulated Amortization | (in thousands) 2016 2015 Conversion costs, net of accumulated amortization of $164.4 million and $150.0 million as of 2016 and 2015, respectively $ Payments for processing rights, net of accumulated amortization of $145.3 million and $137.9 million as of 2016 and 2015, respectively Total $ |
Amortization Expense Related to Computer Software | (in thousands) 2016 2015 2014 Amortization expense related to: Conversion costs $ Payments for processing rights |
Weighted Average Useful Life | Weighted Average Amortization Period (Yrs) Conversion costs Payments for processing rights Total |
Estimated Future Amortization Expense | (in thousands) Conversion Costs Payments for 2017 $ 2018 2019 2020 2021 |
Equity Investments (Tables)
Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of TSYS Equity Investments | (in thousands) 2016 2015 CUP Data $ Other Total $ |
Long-term Borrowings and Capi46
Long-term Borrowings and Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | (in thousands) 2016 2015 3.800% Senior Notes due April 1, 2021 (5 year tranche), net of discount and debt issuance costs $ - 4.800% Senior Notes due April 1, 2026 (10 year tranche), net of discount and debt issuance costs - LIBOR + 1.500%, unsecured term facility, due February 23, 2021, with quarterly principal and interest payments, net of debt issuance costs - 2.375% Senior Notes due June 1, 2018 (5 year tranche), net of discount and debt issuance costs 3.750% Senior Notes due June 1, 2023 (10 year tranche), net of discount and debt issuance costs LIBOR + 1.300%, unsecured revolving loan, due February 23, 2021, with monthly interest payments on outstanding balances - 1.380% note payable due December 31, 2017, with monthly interest and principal payments LIBOR + 1.125%, unsecured term loan, due April 8, 2018, with quarterly principal and interest payments, net of debt issuance costs - LIBOR + 1.125%, unsecured term loan, due September 10, 2017, with quarterly principal and interest payments, net of debt issuance costs - 1.500% note payable, due September 30, 2016, with monthly interest and principal payments - LIBOR + 2.000%, unsecured term loan, due December 7, 2017, with monthly interest payments and principal paid at maturity - 1.500% note payable, due January 31, 2016, with monthly interest and principal payments - Total debt Less current portion Noncurrent portion of long-term debt $ |
Required Annual Principal Payments on Long-term Debt | (in thousands) 2017 $ 2018 2019 2020 2021 |
Capital Lease Obligations | (in thousands) 2016 2015 Capital lease obligations $ Less current portion Noncurrent portion of capital leases $ |
Future Minimum Lease Payments under Capital Leases | (in thousands) 2017 $ 2018 2019 2020 - 2021 - Total minimum lease payments Less amount representing interest Principal minimum lease payments $ |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Contract Acquisition Costs, Net | |
Significant Components of Other Current Liabilities | (in thousands) 2016 2015 Deferred revenues $ Accrued expenses Accrued third-party commissions Litigation settlements Dividends payable Accrued interest Other Total $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Components of Income Tax Expense Included in Consolidated Statements of Income | Years Ended December 31, (in thousands) 2016 2015 2014 Current income tax expense: Federal $ State Foreign Total current income tax expense Deferred income tax expense (benefit): Federal State Foreign Total deferred income tax expense (benefit) Total income tax expense $ |
Components of Income Tax Before Income Tax | Years Ended December 31, (in thousands) 2016 2015 2014 Components of income before income tax expense: Domestic $ Foreign Total income before income tax expense $ |
Income Tax Expense Differed from Amounts Computed by Applying Statutory U.S. Federal Income Tax Rate to Income before Income Taxes, Noncontrolling Interest and Equity in Income of Equity Investments | Years Ended December 31, (in thousands) 2016 2015 2014 Computed "expected" income tax expense $ Increase (decrease) in income tax expense resulting from: International tax rate differential and equity income State income tax expense, net of federal income tax effect Increase (decrease) in valuation allowance Tax credits Deduction for domestic production activities Permanent differences and other, net Total income tax expense $ |
Temporary Differences between Financial Statement Carrying Amounts and Tax Bases of Assets and Liabilities that Give Rise to Significant Portions of Net Deferred Tax Liability | As of December 31, (in thousands) 2016 2015 Deferred income tax assets: Net operating loss and income tax credit carryforwards $ Allowances for doubtful accounts and billing adjustments Deferred revenue Share-based compensation Foreign currency translation - Other, net Total deferred income tax assets Less valuation allowance for deferred income tax assets Net deferred income tax assets Deferred income tax liabilities: Excess tax over financial statement depreciation Computer software development costs Purchase accounting adjustments Foreign currency translation - Other, net Total deferred income tax liabilities Net deferred income tax liabilities $ Total net deferred tax assets (liabilities): Noncurrent deferred tax asset $ Noncurrent deferred tax liability Net deferred tax liability $ |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | (in millions) Year Ended December 31, 2016 Beginning balance $ Current activity: Additions based on tax positions related to current year Additions for tax positions of prior years Decreases resulting from settlements with tax authorities Net, current activity Ending balance $ 1 Unrecognized state tax liabilities are not adjusted for the federal tax impact. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under Noncancelable Operating Leases | (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter Total future minimum commitment payments $ |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Contributions Charged to Expense | (in thousands) 2016 2015 2014 TSYS Retirement Savings Plan $ TSYS Stock Purchase Plan |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity | |
Summary of Equity Compensation Plans | (a) (b) (c) (in thousands, except per share data) Plan Category Number of Weighted- Number of securities Equity compensation plans approved by security holders $ 2 1 The Company does not have any equity compensation plans that were not approved by security holders. 1 Shares available for future grants under the Total System Services, Inc. 2007 Omnibus Plan and 2012 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares. Weighted-average exercise price represents 2.9 million options only and does not include restricted share units that have no exercise price |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Performance- and Market- Based Awards Granted | The following table summarizes the market-based awards granted during the years 2016 and 2015: Year Performance Performance Number of Period Expensed 2016 December 2017 TSR December 2017 2016 December 2018 TSR December 2018 2015 July 2016, 2017 and 2018 TSR July 2018 2015 December 2017 TSR December 2017 The following table summarizes the performance-based awards granted during the years 2016, 2015 and 2014: Year Performance Performance Number of Period Expensed 2016 December 2016 Revenues before Reimbursable Items and Adjusted EPS December 2016 2016 December 2017 Adjusted EPS December 2017 2016 December 2018 Merchant Segment Net Revenue, Corporate Accountability Operating Income and attainment of synergies from TransFirst acquisition December 2018 2016 December 2018 Revenues before Reimbursable Items and Adjusted Operating Income December 2018 2016 December 2018 Merchant Segment Net Revenue and Corporate Accountability Operating Income December 2018 2016 December 2018 Adjusted EPS December 2018 2016 December 2016 Revenues before Reimbursable Items and Adjusted EPS December 2018 2015 December 2017 Adjusted EPS December 2017 2015 December 2015 Revenues before Reimbursable Items and Adjusted EPS December 2018 2014 December 2016 Revenues before Reimbursable Items and Adjusted EPS December 2016 |
Summary of Weighted Average Assumptions and Fair Value of Options | 2016 2015 2014 Number of options granted Weighted average exercise price $ $ $ Risk-free interest rate % % % Expected volatility % % % Expected term (years) Dividend yield % % % Weighted average fair value $ $ $ |
Summary of Stock Option Activity and Changes during Year | 2016 2015 2014 Options: (in thousands, except per share data) Options Weighted Options Weighted Options Weighted Outstanding at beginning of year $ $ $ Granted Exercised Forfeited/canceled Outstanding at end of year $ $ $ Options exercisable at year-end $ $ $ Weighted average fair value of options granted during the year $ $ $ As of December 31, 2016 the average remaining contractual life and intrinsic value of TSYS’ outstanding and exercisable stock options were as follows: Outstanding Exercisable Average remaining contractual life (in years) Aggregate intrinsic value (in thousands) $ |
Summary of Stock Option Exercises | (in thousands) Options Exercised and Intrinsic Value 2016 $ 2015 2014 |
Performance Shares | |
Summary of Number of Shares Granted Each Year | 2016 2015 2014 Number of shares granted Market value ( in millions ) $ |
Summary of Awards Authorized | Total Number of Shares Awarded 1 Potential Number of 2 Year Potential Performance-and Market- 2016 2015 2014 1 Shares awarded does not include dividend equivalents 2 Includes dividend equivalents |
Summarized Status of Performance-based Nonvested Shares and Changes during Period | 2016 2015 2014 (in thousands, except per share data) Performance- and market-based nonvested shares Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of year $ $ $ Granted Vested Forfeited/canceled/adjusted Outstanding at end of year $ $ $ |
Unvested Restricted Awards | |
Summarized Status of Nonvested Shares and Changes during Periods | 2016 2015 2014 (in thousands, except per share data) Nonvested shares Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of year $ $ $ Granted Vested Forfeited/canceled/adjusted Outstanding at end of year $ $ $ |
Treasury Stock (Tables)
Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Shares Held as Treasury Stock and Related Carrying Value | (in thousands) Number of Treasury Treasury Shares Cost 2016 $ 2015 2014 |
Purchases of Common Stock on Monthly Basis | The following table sets forth information regarding the Company's purchases of its common stock on a monthly basis during the three months ended December 31, 2016: (in thousands, except per share data) Total Number of Average Price Paid Total Number of Maximum Number October 2016 - $ - November 2016 December 2016 1 Total $ 1 Includes delivery of shares to TSYS on vesting of shares to pay taxes. |
TSYS Stock Repurchase Plan | |
Purchases of Common Stock on Monthly Basis | (in thousands, except per share data) Total Number of Average Price Paid Repurchased Shares Cost 2016 $ $ 2015 2014 |
Other Comprehensive Income (L54
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity | |
Income Tax Effects Allocated to and Cumulative Balance of Accumulated Other Comprehensive Income (Loss) | (in thousands) Beginning Pretax Tax Net-of-tax Ending As of December 31, 2013 $ $ $ Foreign currency translation adjustments $ $ $ Transfer from noncontrolling interest (NCI) - - - Loss on available for sale securities Change in AOCI related to postretirement healthcare plans As of December 31, 2014 $ $ $ Foreign currency translation adjustments $ $ Transfer from NCI - - - Gain on available for sale securities Change in AOCI related to postretirement healthcare plans As of December 31, 2015 $ $ $ Foreign currency translation adjustments $ $ $ Transfer from NCI - - - Gain on available for sale securities Change in AOCI related to postretirement healthcare plans As of December 31, 2016 $ $ $ |
Segment Reporting, including 55
Segment Reporting, including Geographic Area Data and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting, including Geographic Area Data and Major Customers | |
Operating Segments | Operating Segments Years Ended December 31, (in thousands) 2016 2015 2014 Operating income (GAAP) (a) $ Share-based compensation TransFirst and Netspend M&A and integration expenses 1 - Litigation, claims, judgments or settlements - - Acquisition intangible amortization Adjusted operating income (non-GAAP) (b) $ Adjusted operating income by segment (non-GAAP): North America Services (c) $ International Services (d) Merchant Services (e) Netspend (f) Corporate Administration and Other Adjusted segment operating income 2 (non-GAAP) $ Total revenues (GAAP) (g) $ Less: reimbursable items Revenue before reimbursable items Intersegment revenues Segment revenue before reimbursable items (non-GAAP) $ Segment revenue before reimbursable items (non-GAAP): North America Services $ International Services Merchant Services Netspend Segment revenue before reimbursable items (non-GAAP) $ Total revenues (GAAP) (g) $ Less: reimbursable items Revenue before reimbursable items Less: interchange and assessments expenses - - Net revenue 2 (non-GAAP) (h) Intersegment revenues Segment net revenue (non-GAAP) $ Segment net revenue (non-GAAP): North America Services (i) $ International Services (j) Merchant Services (k) Netspend (l) Segment net revenue (non-GAAP) $ Segment external net revenue (non-GAAP): North America Services $ International Services Merchant Services Netspend Segment external net revenue (non-GAAP) $ Operating margin (GAAP) (a)/(g) Adjusted operating margin on net revenue (non-GAAP) (b)/(h) Adjusted segment operating margin on net revenue (non-GAAP): North America Services (c)/(i) International Services (d)/(j) Merchant Services (e)/(k) Netspend (f)/(l) 1 Excludes share-based compensation 2 Net revenue and adjusted segment operating income are non-GAAP measures. Net revenue is total revenues less reimbursable items (such as postage), as well as, merchant acquiring interchange and assessment fees charged by the card associations or payment networks that are recorded by TSYS as expense . Adjusted segment operating income excludes acquisition intangible amortization, TransFirst M&A expenses, share-based compensation and expenses associated with Corporate Administration and Other. |
Total Assets by Segment | As of December 31, (in thousands) 2016 2015 North America Services $ Merchant Services Netspend International Services Intersegment assets Total assets $ |
Depreciation Expenses by segment | Operating Segments Years Ended December 31, (in thousands) 2016 2015 2014 Depreciation and amortization: North America Services $ International Services Merchant Services Netspend Segment depreciation and amortization Acquisition intangible amortization Corporate Administration and Other Total depreciation and amortization $ |
Property and Equipment, Net of Accumulated Depreciation and Amortization | As of December 31, (in thousands) 2016 2015 United States $ Europe Other Total $ |
Revenues Based on Domicile of Company's Customers | 2016 (in thousands) North America International Merchant Netspend Total Percentage of Revenues United States $ - $ % Europe 1 - Canada 1 - Mexico - - Other 1 - Total $ $ % 2015 (in thousands) North America International Merchant Netspend Total Percentage of Revenues United States $ - $ % Europe 1 - Canada 1 - - Mexico - - - Other 1 - Total $ $ % 2014 (in thousands) North America International Merchant Netspend Total Percentage of Revenues United States $ - $ % Europe 1 - - Canada 1 - - Mexico - - - Other 1 - Total $ $ % 1 Revenues are impacted by movements in foreign currency exchange rates |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Pro Forma Revenue and Earnings | Actual Supplemental pro forma Years Ended December 31, Years Ended December 31, 2016 2015 2016 2015 (in thousands, except per share data) Revenue $ Net income attributable to TSYS common shareholders $ Basic EPS attributable to TSYS common shareholders $ Diluted EPS attributable to TSYS common shareholders $ |
TransFirst | |
Amounts of Assets Acquired and Liabilities Assumed Recognized | (in thousands) Consideration Cash $ Fair value of total consideration transferred $ Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ Accounts receivable, net Property, equipment and software Identifiable intangible assets Deferred tax asset Other assets Deferred tax liability Other liabilities Total identifiable net assets Goodwill Total identifiable assets acquired and liabilities assumed $ |
Estimated Fair Value of Identifiable Intangible Assets Acquired | (in millions) Fair Value Weighted Average (in years) Merchant relationships $ Channel partners Current technology Trade name Covenants not-to-compete Favorable lease Total acquired identifiable intangible assets $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | 2016 2015 2014 (in thousands, except per share data) Common Common Common Basic EPS: Net income attributable to TSYS common shareholders $ $ $ Less income allocated to nonvested awards Net income allocated to common stock for EPS calculation(a) $ $ Average common shares outstanding(b) Basic EPS(a)/(b) $ $ $ Diluted EPS: Net income attributable to TSYS common shareholders $ $ $ Less income allocated to nonvested awards Add income allocated to nonvested awards 1 - - Net income allocated to common stock for EPS calculation(c) $ $ $ Average common shares outstanding Increase due to assumed issuance of shares related to common equivalent shares outstanding Average nonvested awards 1 - - Average common and common equivalent shares outstanding(d) Diluted EPS(c)/(d) $ $ $ 2016 2015 2014 (in thousands, except per share data) Participating Securities Participating Securities Participating Securities Basic EPS: Net income allocated to nonvested awards(a) $ Nonvested awards(b) Basic EPS(a)/(b) $ Diluted EPS: Net income allocated to nonvested awards(c) $ Average common and common equivalent shares outstanding(d) Diluted EPS(c)/(d) $ In accordance with the diluted EPS guidance under the two-class method, the Company uses the approach – either the treasury stock method or the two-class method assuming a participating security is not exercised- that is more dilutive. In 2016, the Company used the two-class method. In 2015 and 2014, the Company used the treasury stock method. |
Summary of Significant Accounti
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Significant Accounting Policies [Line Items] | |||
Software technology assets resulting from acquisitions, estimated useful live | 7 years 1 month 6 days | ||
Equity investments, net | $ 110,793 | $ 106,118 | |
Cardholders' loss reserve | 10,500 | 9,400 | |
Advertising expenses | $ 11,500 | 9,600 | $ 5,700 |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Estimated forfeiture rate | 0.00% | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated forfeiture rate | 8.00% | ||
CUP Data | |||
Significant Accounting Policies [Line Items] | |||
Equity method investment, percentage of ownership | 44.56% | ||
Equity investments, net | $ 101,638 | $ 98,518 | |
Perpetual and site licenses | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 3 years | ||
Perpetual and site licenses | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 10 years | ||
Licensed computer software | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 10 years | ||
Acquisition technology intangibles | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Software technology assets resulting from acquisitions, estimated useful live | 5 years | ||
Acquisition technology intangibles | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Software technology assets resulting from acquisitions, estimated useful live | 9 years | ||
Software development costs | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 3 years | ||
Software development costs | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 10 years | ||
Other intangible assets | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 3 years | ||
Other intangible assets | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 10 years | ||
North American And International Services | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Processing contracts | 3 years | ||
North American And International Services | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Processing contracts | 10 years | ||
Merchant Services | |||
Significant Accounting Policies [Line Items] | |||
Reserve for merchant loss | $ 2,000 | ||
Merchant Services | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Processing contracts | 3 years | ||
Merchant Services | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Processing contracts | 8 years | ||
Goodwill [Member] | |||
Significant Accounting Policies [Line Items] | |||
Equity investments, net | $ 46,100 | ||
Buildings and improvements | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful live | 5 years | ||
Buildings and improvements | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful live | 40 years | ||
Computer equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful live | 2 years | ||
Computer equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful live | 5 years | ||
Furniture and other equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful live | 3 years | ||
Furniture and other equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful live | 15 years | ||
Netspend Holdings Inc | |||
Significant Accounting Policies [Line Items] | |||
Operating segments | segment | 4 | ||
Cardholders' loss reserve | $ 10,500 | ||
Netspend Holdings Inc | TSYS de Mexico | |||
Significant Accounting Policies [Line Items] | |||
Equity method investment, percentage of ownership | 49.00% | ||
Netspend Holdings Inc | CUP Data | |||
Significant Accounting Policies [Line Items] | |||
Equity method investment, percentage of ownership | 44.56% | ||
Netspend Holdings Inc | Internal-use software | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 3 years | ||
Netspend Holdings Inc | Internal-use software | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 10 years | ||
Netspend Holdings Inc | Other Current Liabilities | |||
Significant Accounting Policies [Line Items] | |||
Transaction processing provision | $ 2,900 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | |
Significant Accounting Policies [Line Items] | ||
Noncurrent deferred tax asset | $ 7,055 | $ 6,242 |
Operating leases | $ 472,800 | |
Accounting Standards Update 2015-17 | ||
Significant Accounting Policies [Line Items] | ||
Deferred tax assets current | 24,700 | |
Noncurrent deferred tax asset | 24,700 | |
Accounting Standards Update 2015-15 | ||
Significant Accounting Policies [Line Items] | ||
Deferred debt issuance costs, net | $ 6,400 | |
Netspend Holdings Inc | ||
Significant Accounting Policies [Line Items] | ||
Operating segments | segment | 4 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on dispositions, net of tax | $ 1,411 | $ 48,615 | |
GP Net | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale of stock, ownership percentage | 54.00% | ||
TSYS Japan | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale of stock, ownership percentage | 100.00% |
Summarized Results of Discontin
Summarized Results of Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Total revenues | $ 16,376 | |
Income before taxes | 1 | |
Income tax benefit | (39) | |
Income from operating activities of discontinued operations, net of tax | 40 | |
Gain on dispositions, net of tax | $ 1,411 | 48,615 |
Income from discontinued operations, net of tax | 1,411 | 48,655 |
Income from discontinued operations, net of tax, attributable to noncontrolling interest | 999 | |
Income from discontinued operations, net of tax, attributable to TSYS common shareholders | $ 1,411 | $ 47,656 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Goodwill | $ 3,270,952 | $ 1,545,424 |
Cash and Cash Equivalent (Detai
Cash and Cash Equivalent (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents in domestic accounts | $ 375,122 | $ 307,578 |
Cash and cash equivalents in foreign accounts | 50,232 | 81,750 |
Cash and cash equivalents | $ 425,354 | $ 389,328 |
Prepaid Expenses and Other Cu64
Prepaid Expenses and Other Current Assets - Significant Components (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Uncategorized [Abstract] | ||
Prepaid expenses | $ 84,173 | $ 37,961 |
Supplies inventory | 17,105 | 15,114 |
Income taxes receivable | 51,322 | |
Other | 63,210 | 49,802 |
Total | $ 164,488 | $ 154,199 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill | $ 3,270,952 | $ 1,545,424 |
Netspend Holdings Inc | ||
Goodwill [Line Items] | ||
Addition to purchase price allocation | 584 | $ 627 |
TransFirst | ||
Goodwill [Line Items] | ||
Goodwill | $ 1,728,088 |
Goodwill - Gross Amount and Acc
Goodwill - Gross Amount and Accumulated Impairment Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | |||
Gross amount | $ 3,274,964 | $ 1,549,436 | |
Accumulated impairment losses | (4,012) | (4,012) | |
Goodwill, net | 3,270,952 | 1,545,424 | $ 1,547,397 |
North America Services | |||
Goodwill [Line Items] | |||
Gross amount | 70,796 | 70,796 | |
Accumulated impairment losses | (182) | (182) | |
Goodwill, net | 70,614 | 70,614 | 70,614 |
International Services | |||
Goodwill [Line Items] | |||
Gross amount | 25,937 | 29,081 | |
Accumulated impairment losses | (1,605) | (1,605) | |
Goodwill, net | 24,332 | 27,476 | 30,076 |
Merchant Services | |||
Goodwill [Line Items] | |||
Gross amount | 2,144,061 | 415,973 | |
Accumulated impairment losses | (2,225) | (2,225) | |
Goodwill, net | 2,141,836 | 413,748 | 413,748 |
Netspend | |||
Goodwill [Line Items] | |||
Gross amount | 1,034,170 | 1,033,586 | |
Goodwill, net | $ 1,034,170 | $ 1,033,586 | $ 1,032,959 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amount (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Beginning Balance | $ 1,545,424 | $ 1,547,397 |
Goodwill | 3,270,952 | 1,545,424 |
Currency translation adjustments | (3,144) | (2,600) |
Ending Balance | 3,270,952 | 1,545,424 |
Netspend Holdings Inc | ||
Goodwill [Line Items] | ||
Tax adjustment | 584 | 627 |
TransFirst | ||
Goodwill [Line Items] | ||
Goodwill | 1,728,088 | |
North America Services | ||
Goodwill [Line Items] | ||
Beginning Balance | 70,614 | 70,614 |
Ending Balance | 70,614 | 70,614 |
International Services | ||
Goodwill [Line Items] | ||
Beginning Balance | 27,476 | 30,076 |
Currency translation adjustments | (3,144) | (2,600) |
Ending Balance | 24,332 | 27,476 |
Merchant Services | ||
Goodwill [Line Items] | ||
Beginning Balance | 413,748 | 413,748 |
Ending Balance | 2,141,836 | 413,748 |
Merchant Services | TransFirst | ||
Goodwill [Line Items] | ||
Goodwill | 1,728,088 | |
Netspend | ||
Goodwill [Line Items] | ||
Beginning Balance | 1,033,586 | 1,032,959 |
Ending Balance | 1,034,170 | 1,033,586 |
Netspend | Netspend Holdings Inc | ||
Goodwill [Line Items] | ||
Tax adjustment | $ 584 | $ 627 |
Other Intangible Assets, Net -
Other Intangible Assets, Net - Significant Components (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,327,283 | $ 585,416 |
Accumulated Amortization | (420,607) | (257,096) |
Intangible Assets, Net (Excluding Goodwill), Total | 906,676 | 328,320 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 588,000 | 318,600 |
Accumulated Amortization | (63,000) | (99,909) |
Intangible Assets, Net (Excluding Goodwill), Total | 525,000 | 218,691 |
Channel relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 439,600 | 166,579 |
Accumulated Amortization | (148,815) | (104,736) |
Intangible Assets, Net (Excluding Goodwill), Total | 290,785 | 61,843 |
Merchant relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 166,340 | |
Accumulated Amortization | (122,465) | |
Intangible Assets, Net (Excluding Goodwill), Total | 43,875 | |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 62,397 | 46,422 |
Accumulated Amortization | (45,197) | (24,422) |
Intangible Assets, Net (Excluding Goodwill), Total | 17,200 | 22,000 |
Covenants-Not-to-Compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 29,940 | 14,940 |
Accumulated Amortization | (13,869) | (7,834) |
Intangible Assets, Net (Excluding Goodwill), Total | 16,071 | 7,106 |
Database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 28,000 | 28,000 |
Accumulated Amortization | (19,600) | (14,000) |
Intangible Assets, Net (Excluding Goodwill), Total | 8,400 | 14,000 |
Trade association | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 10,000 | 10,000 |
Accumulated Amortization | (6,750) | (5,750) |
Intangible Assets, Net (Excluding Goodwill), Total | 3,250 | 4,250 |
Favorable lease | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 3,006 | 875 |
Accumulated Amortization | (911) | (445) |
Intangible Assets, Net (Excluding Goodwill), Total | $ 2,095 | $ 430 |
Other Intangible Assets, Net 69
Other Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses recorded in selling, general and administrative expenses | $ 189,990 | $ 92,521 | $ 96,970 |
Other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses recorded in selling, general and administrative expenses | $ 163,800 | $ 75,800 | $ 77,300 |
Other Intangible Assets, Net 70
Other Intangible Assets, Net - Weighted Average Useful Life (Details) - Other intangible assets | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 7 years 4 months 24 days |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 7 years |
Channel relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 8 years 7 months 6 days |
Merchant relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 8 years 2 months 12 days |
Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 3 years 10 months 24 days |
Covenants-Not-to-Compete | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 4 years 1 month 6 days |
Database | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 5 years |
Trade association | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 10 years |
Favorable lease | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 5 years 4 months 24 days |
Other Intangible Assets, Net 71
Other Intangible Assets, Net - Estimated Future Amortization Expense (Details) - Other intangible assets $ in Thousands | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 180,304 |
2,018 | 161,647 |
2,019 | 145,601 |
2,020 | 140,193 |
2,021 | $ 119,617 |
Computer Software, Net - Summar
Computer Software, Net - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Computer software | $ 1,180,582 | $ 1,085,652 |
Computer software, accumulated amortization | 757,394 | 680,582 |
Capitalized Computer Software, Net, Total | 423,188 | 405,070 |
Licensed computer software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Computer software | 513,790 | 513,443 |
Computer software, accumulated amortization | 315,591 | 282,563 |
Software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Computer software | 428,581 | 404,238 |
Computer software, accumulated amortization | 307,190 | 287,863 |
Acquisition technology intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Computer software | 238,211 | 167,971 |
Computer software, accumulated amortization | $ 134,613 | $ 110,156 |
Computer Software, Net - Capita
Computer Software, Net - Capital Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Leased Assets [Line Items] | ||
Gross | $ 57,114 | $ 60,824 |
Accumulated Amortization | (42,848) | (38,865) |
Net | 14,266 | 21,959 |
Licensed computer software | ||
Capital Leased Assets [Line Items] | ||
Gross | 23,665 | 18,206 |
Accumulated Amortization | (14,634) | (8,175) |
Net | $ 9,031 | $ 10,031 |
Computer Software, Net - Amorti
Computer Software, Net - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amortization expense related to: | |||
Acquisition intangible amortization | $ 189,990 | $ 92,521 | $ 96,970 |
Licensed computer software | |||
Amortization expense related to: | |||
Acquisition intangible amortization | 45,655 | 41,823 | 36,775 |
Software development costs | |||
Amortization expense related to: | |||
Acquisition intangible amortization | 26,478 | 22,740 | 25,248 |
Acquisition technology intangibles | |||
Amortization expense related to: | |||
Acquisition intangible amortization | $ 26,217 | $ 16,734 | $ 19,683 |
Computer Software, Net - Weight
Computer Software, Net - Weighted Average Useful Life (Details) - Computer Software, Intangible Asset | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 6 years |
Licensed computer software | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 5 years 9 months 18 days |
Software development costs | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 6 years 1 month 6 days |
Acquisition technology intangibles | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 6 years 2 months 12 days |
Computer Software, net - Estima
Computer Software, net - Estimated Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Licensed computer software | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 42,937 |
2,018 | 34,142 |
2,019 | 21,071 |
2,020 | 17,010 |
2,021 | 9,293 |
Software development costs | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | 23,777 |
2,018 | 18,225 |
2,019 | 13,414 |
2,020 | 9,646 |
2,021 | 6,787 |
Acquisition technology intangibles | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | 28,268 |
2,018 | 25,793 |
2,019 | 25,793 |
2,020 | 20,134 |
2,021 | $ 3,600 |
Property and Equipment, Net - B
Property and Equipment, Net - Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 763,035 | $ 747,226 |
Property and equipment, accumulated depreciation and amortization | 480,690 | 457,328 |
Property, Plant and Equipment, Net, Total | 282,345 | 289,898 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 356,358 | 346,387 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 246,577 | 244,938 |
Furniture and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 141,836 | 138,727 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,877 | 16,577 |
Other. | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,387 | $ 597 |
Property and Equipment, Net - C
Property and Equipment, Net - Capital Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Leased Assets [Line Items] | ||
Gross | $ 57,114 | $ 60,824 |
Accumulated Amortization | (42,848) | (38,865) |
Net | 14,266 | 21,959 |
Computer equipment | ||
Capital Leased Assets [Line Items] | ||
Gross | 51,702 | 55,450 |
Accumulated Amortization | (39,060) | (36,134) |
Furniture and other equipment | ||
Capital Leased Assets [Line Items] | ||
Gross | 5,412 | 5,374 |
Accumulated Amortization | $ (3,788) | $ (2,731) |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense related to property and equipment | $ 62.5 | $ 56.6 | $ 53.5 |
Contract Acquisition Costs, N80
Contract Acquisition Costs, Net - Significant Components (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Conversion costs, net of accumulated amortization of $164.4 million and $150.0 million as of 2016 and 2015, respectively | $ 144,173 | $ 159,000 |
Payments for processing rights, net of accumulated amortization of $145.3 million and $137.9 million as of 2016 and 2015, respectively | 91,527 | 88,811 |
Total | 235,700 | 247,811 |
Accumulated amortization | 420,607 | 257,096 |
Conversion costs | ||
Accumulated amortization | 164,400 | 150,000 |
Payments for processing rights | ||
Accumulated amortization | $ 145,300 | $ 137,900 |
Contract Acquisition Costs, N81
Contract Acquisition Costs, Net - Amortization Expense Related (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||
Amortization expense | $ 189,990 | $ 92,521 | $ 96,970 |
Conversion costs | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||
Amortization expense | 28,811 | 27,392 | 17,816 |
Payments for processing rights | |||
Finite Lived Intangible Assets Amortization Expense [Line Items] | |||
Amortization expense | $ 19,804 | $ 17,039 | $ 16,209 |
Contract Acquisition Costs, N82
Contract Acquisition Costs, Net - Weighted Average Useful Life (Details) - Contract Acquisition Costs | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 14 years 1 month 6 days |
Conversion costs | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 15 years 7 months 6 days |
Payments for processing rights | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (Yrs) | 12 years 10 months 24 days |
Contract Acquisition Costs, N83
Contract Acquisition Costs, Net - Estimated Future Amortization on Payments for Processing and Conversion (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Conversion costs | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 32,830 |
2,018 | 29,727 |
2,019 | 24,480 |
2,020 | 20,037 |
2,021 | 18,197 |
Payments for processing rights | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | 19,487 |
2,018 | 18,084 |
2,019 | 15,220 |
2,020 | 12,955 |
2,021 | $ 10,704 |
Equity Investments - Additional
Equity Investments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity in income of equity investments, net of tax | $ 25,933 | $ 22,106 | $ 17,583 |
CUP Data | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, percentage of ownership | 44.56% | ||
Promocn Y Operacin, SA De CV | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, percentage of ownership | 49.00% |
Equity Investments - Summary (D
Equity Investments - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Equity investments, net | $ 110,793 | $ 106,118 |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity investments, net | 9,155 | 7,600 |
CUP Data | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity investments, net | $ 101,638 | $ 98,518 |
Long-term Borrowings and Capi86
Long-term Borrowings and Capital Lease Obligations - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,360,255 | $ 1,423,956 |
Less current portion | 48,040 | 50,078 |
Noncurrent portion of long-term debt | 3,312,215 | 1,373,878 |
3.800% Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 743,625 | |
4.800% Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 742,383 | |
2.375% Senior Notes due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 548,615 | 547,720 |
3.750% Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 543,947 | 543,153 |
LIBOR + 1.500%, unsecured term facility | Unsecured term facility, due February 23, 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 697,832 | |
LIBOR + 1.300%, unsecured revolving loan | Unsecured term facility, due February 23, 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 70,000 | |
LIBOR + 1.125%, unsecured term loan | Unsecured term loan due on April 08, 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 174,652 | |
LIBOR + 1.125%, unsecured term loan | Unsecured term loan due on September 10, 2017 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 119,761 | |
1.38% note payable | Due December 31, 2017 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 13,853 | 30,000 |
1.50% note payable | Due September 30, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 5,132 | |
1.50% note payable | Due January 31, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 336 | |
LIBOR + 2.0%, unsecured term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,202 |
Long-term Borrowings and Capi87
Long-term Borrowings and Capital Lease Obligations - Summary of Long-term Debt Narrative (Details) | Feb. 23, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Mar. 17, 2016 | May 31, 2013 |
Debt Instrument [Line Items] | |||||||
Senior notes maturity , period | 5 years | ||||||
3.800% Senior Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes interest rate | 3.80% | 3.80% | 3.80% | 3.80% | |||
Debt instrument, maturity date | Apr. 1, 2021 | Apr. 1, 2021 | |||||
Senior notes maturity , period | 5 years | 5 years | |||||
4.800% Senior Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes interest rate | 4.80% | 4.80% | 4.80% | 4.80% | |||
Debt instrument, maturity date | Apr. 1, 2026 | Apr. 1, 2026 | |||||
Senior notes maturity , period | 10 years | 10 years | |||||
2.375% Senior Notes due 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes interest rate | 2.375% | 2.375% | 2.375% | 2.375% | |||
Debt instrument, maturity date | Jun. 1, 2018 | Jun. 1, 2018 | |||||
Senior notes maturity , period | 5 years | 5 years | |||||
3.750% Senior Notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes interest rate | 3.75% | 3.75% | 3.75% | 3.75% | |||
Debt instrument, maturity date | Jun. 1, 2023 | Jun. 1, 2023 | |||||
Senior notes maturity , period | 10 years | ||||||
1.50% note payable | Due September 30, 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes interest rate | 1.50% | 1.50% | 1.50% | ||||
Debt instrument, maturity date | Sep. 30, 2016 | Sep. 30, 2016 | |||||
1.50% note payable | Due January 31, 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes interest rate | 1.50% | 1.50% | 1.50% | ||||
Debt instrument, maturity date | Jan. 31, 2016 | Jan. 31, 2016 | |||||
LIBOR + 2.0%, unsecured term loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Dec. 1, 2017 | Dec. 7, 2017 | Dec. 7, 2017 | ||||
LIBOR + 2.0%, unsecured term loan | London Interbank Offered Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, margin rate | 2.00% | 2.00% | |||||
Unsecured term facility, due February 23, 2021 | LIBOR + 1.500%, unsecured term facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Feb. 23, 2021 | Feb. 23, 2021 | |||||
Debt instrument, margin rate | 1.50% | 1.50% | |||||
Unsecured term facility, due February 23, 2021 | LIBOR + 1.300%, unsecured revolving loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Feb. 23, 2021 | Feb. 23, 2021 | |||||
Unsecured revolving loan, due February 23, 2021 | LIBOR + 1.300%, unsecured revolving loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, margin rate | 1.30% | 1.30% | |||||
Unsecured term loan due on April 08, 2018 | LIBOR + 1.125%, unsecured term loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Apr. 8, 2018 | Apr. 8, 2018 | |||||
Debt instrument, margin rate | 1.125% | 1.125% | |||||
Unsecured term loan due on April 08, 2018 | 1.38% note payable | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes interest rate | 1.38% | 1.38% | 1.38% | ||||
Debt instrument, maturity date | Dec. 31, 2017 | Dec. 31, 2017 | |||||
Unsecured term loan due on September 10, 2017 | LIBOR + 1.125%, unsecured term loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Sep. 10, 2017 | Sep. 10, 2017 | |||||
Debt instrument, margin rate | 1.125% | 1.125% |
Long-Term Borrowings and Capi88
Long-Term Borrowings and Capital Lease Obligations - Additional Information (Detail) | Mar. 17, 2016USD ($) | Feb. 23, 2016USD ($) | Apr. 08, 2013USD ($) | Sep. 30, 2015USD ($) | May 31, 2013USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2015GBP (£) | Sep. 30, 2015USD ($) | Dec. 31, 2014GBP (£) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Credit facility, Maximum Borrowing Capacity | $ 700,000,000 | ||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||
Long-term debt | $ 3,360,255,000 | $ 1,423,956,000 | $ 3,360,255,000 | ||||||||||
Standby letters of credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, Maximum Borrowing Capacity | $ 50,000,000 | ||||||||||||
Repayment of Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, Outstanding | $ 0 | $ 0 | |||||||||||
3.800% Senior Notes due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Term | 5 years | 5 years | |||||||||||
Aggregate principal amount | $ 750,000,000 | ||||||||||||
Senior notes interest rate | 3.80% | 3.80% | 3.80% | 3.80% | |||||||||
Debt instrument, maturity date | Apr. 1, 2021 | Apr. 1, 2021 | |||||||||||
Senior notes maturity year | 2,021 | ||||||||||||
Long-term debt | $ 743,625,000 | $ 743,625,000 | |||||||||||
4.800% Senior Notes due 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Term | 10 years | 10 years | |||||||||||
Aggregate principal amount | $ 750,000,000 | ||||||||||||
Senior notes interest rate | 4.80% | 4.80% | 4.80% | 4.80% | |||||||||
Debt instrument, maturity date | Apr. 1, 2026 | Apr. 1, 2026 | |||||||||||
Senior notes maturity year | 2,026 | ||||||||||||
Long-term debt | $ 742,383,000 | $ 742,383,000 | |||||||||||
2.375% Senior Notes due 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Term | 5 years | 5 years | |||||||||||
Aggregate principal amount | $ 550,000,000 | ||||||||||||
Senior notes interest rate | 2.375% | 2.375% | 2.375% | 2.375% | |||||||||
Debt instrument, maturity date | Jun. 1, 2018 | Jun. 1, 2018 | |||||||||||
Senior notes maturity year | 2,018 | ||||||||||||
Long-term debt | $ 548,615,000 | $ 547,720,000 | $ 548,615,000 | ||||||||||
3.750% Senior Notes due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||
Aggregate principal amount | $ 550,000,000 | ||||||||||||
Senior notes interest rate | 3.75% | 3.75% | 3.75% | 3.75% | |||||||||
Debt instrument, maturity date | Jun. 1, 2023 | Jun. 1, 2023 | |||||||||||
Senior notes maturity year | 2,023 | ||||||||||||
Long-term debt | $ 543,947,000 | $ 543,153,000 | $ 543,947,000 | ||||||||||
Netspend Holdings Inc | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Business acquisition, cost of acquired entity, purchase price | $ 750,000 | 1,400,000,000 | |||||||||||
TransFirst | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Business acquisition, cost of acquired entity, purchase price | $ 2,350,000,000 | 2,351,400,000 | |||||||||||
Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, Maximum Borrowing Capacity | $ 200,000,000 | ||||||||||||
Credit facility, Outstanding | 697,800,000 | 697,800,000 | |||||||||||
Credit agreement term | 5 years | ||||||||||||
Outstanding balance on the Credit Agreement | 0 | ||||||||||||
Term Loan | London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 1.50% | 1.125% | |||||||||||
Term Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 1.00% | 1.00% | |||||||||||
Term Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 1.75% | 1.75% | |||||||||||
Term Loan | Base rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 0.50% | ||||||||||||
Term Loan | Base rate | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 0.00% | ||||||||||||
Term Loan | Base rate | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 0.75% | ||||||||||||
Bridge Loan Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit agreement commitment | $ 1,150,000,000 | ||||||||||||
Bridge loan facility, term | 364 days | ||||||||||||
Line of Credit, Current | $ 350,000,000 | ||||||||||||
Bridge Loan Facility | Before Amendment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit agreement commitment | 2,000,000,000 | ||||||||||||
Unsecured revolving credit facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, Maximum Borrowing Capacity | 800,000,000 | ||||||||||||
Repayments of Debt | 400,000,000 | ||||||||||||
Credit facility, Outstanding | $ 70,000,000 | ||||||||||||
Unsecured revolving credit facility | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 0.10% | ||||||||||||
Unsecured revolving credit facility | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 0.25% | ||||||||||||
Unsecured revolving credit facility | London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 1.30% | ||||||||||||
Unsecured revolving credit facility | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 0.90% | ||||||||||||
Unsecured revolving credit facility | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 1.50% | ||||||||||||
Unsecured revolving credit facility | Base rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 0.30% | ||||||||||||
Unsecured revolving credit facility | Base rate | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 0.00% | ||||||||||||
Unsecured revolving credit facility | Base rate | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 0.50% | ||||||||||||
Refinancing Term Loan | Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, Maximum Borrowing Capacity | $ 300,000,000 | ||||||||||||
Delayed Draw Term Loan | Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, Maximum Borrowing Capacity | $ 400,000,000 | ||||||||||||
Financing agreement for perpetual software licenses | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | 0 | 30,000,000 | 0 | $ 13,600,000 | $ 13,600,000 | ||||||||
Financing agreement for perpetual software licenses | Financing Agreement In September 2014 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Balance of financing agreement | 0 | 0 | |||||||||||
Financing agreement for perpetual software licenses | Financing Agreement In December 2015 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Balance of financing agreement | $ 13,900,000 | $ 13,000,000 | $ 13,900,000 | ||||||||||
LIBOR + 2.0%, unsecured term loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | £ 1,300,000 | $ 1,900,000 | £ 900,000 | $ 1,400,000 | |||||||||
Debt instrument, maturity date | Dec. 1, 2017 | Dec. 7, 2017 | Dec. 7, 2017 | ||||||||||
Long-term debt | $ 3,202,000 | ||||||||||||
LIBOR + 2.0%, unsecured term loan | London Interbank Offered Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 2.00% | 2.00% | |||||||||||
LIBOR + 2.0%, unsecured term loan | London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, margin rate | 2.00% | ||||||||||||
Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, fee amount | $ 8,900,000 | ||||||||||||
Debt instrument, discount | $ 4,300,000 |
Long-term Borrowings and Capi89
Long-term Borrowings and Capital Lease Obligations - Required Annual Principal Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 48,853 |
2,017 | 611,250 |
2,018 | 70,000 |
2,019 | 70,000 |
2,020 | $ 1,283,750 |
Long-term Borrowings and Capi90
Long-term Borrowings and Capital Lease Obligations - Capital Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Capital lease obligations | $ 3,748 | $ 7,131 |
Less current portion | 2,687 | 3,468 |
Obligations under capital leases, excluding current portion | $ 1,061 | $ 3,663 |
Minimum | Equipment And Software [Member] | ||
Lease term range | 1 year | |
Maximum | Equipment And Software [Member] | ||
Lease term range | 6 years |
Long-term Borrowings and Capi91
Long-term Borrowings and Capital Lease Obligations - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,016 | $ 2,754 |
2,017 | 1,019 |
2,018 | 63 |
Total minimum lease payments | 3,836 |
Less amount representing interest | 88 |
Principal minimum lease payments | $ 3,748 |
Other Current Liabilities - Sig
Other Current Liabilities - Significant Components (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Deferred revenues | $ 40,473 | $ 39,863 |
Accrued expenses | 32,861 | 26,017 |
Accrued third-party commissions | 28,310 | 9,810 |
Litigation settlements | 20,795 | 1,290 |
Dividends payable | 19,513 | 19,367 |
Accrued interest | 19,029 | 2,820 |
Other | 102,278 | 67,412 |
Total | $ 263,259 | $ 166,579 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current income tax expense: | |||
Federal | $ 140,079 | $ 139,228 | $ 126,203 |
State | 9,218 | 9,255 | 5,161 |
Foreign | 4,443 | 4,762 | 7,694 |
Total current income tax expense | 153,740 | 153,245 | 139,058 |
Deferred income tax expense (benefit): | |||
Federal | 8,393 | (2,198) | (3,623) |
State | (65) | 442 | (2,039) |
Foreign | (893) | (125) | (3,635) |
Total deferred income tax expense (benefit) | 7,435 | (1,881) | (9,297) |
Income Tax Expense (Benefit), Total | $ 161,175 | $ 151,364 | $ 129,761 |
Income Taxes - Before Income Ta
Income Taxes - Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of income before income tax expense: | |||
Domestic | $ 454,763 | $ 488,515 | $ 369,888 |
Foreign | 6,451 | 8,373 | 23,041 |
Income before income taxes and equity in income of equity investments | $ 461,214 | $ 496,888 | $ 392,929 |
Income Taxes - Tax Expense and
Income Taxes - Tax Expense and Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | |||
Statutory federal income tax rate | 35.00% | ||
Computed "expected" income tax expense | $ 161,425 | $ 173,911 | $ 137,525 |
International tax rate differential and equity income | 8,715 | 8,367 | 6,541 |
State income tax expense, net of federal income tax effect | 9,127 | 7,101 | 4,823 |
Increase (decrease) in valuation allowance | 2,855 | (517) | (4,550) |
Tax credits | (15,695) | (28,831) | (3,459) |
Deduction for domestic production activities | (12,950) | (11,550) | (8,750) |
Permanent differences and other, net | 7,698 | 2,883 | (2,369) |
Income Tax Expense (Benefit), Total | $ 161,175 | $ 151,364 | $ 129,761 |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences Net Deferred Tax Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets: | ||
Net operating loss and income tax credit carryforwards | $ 34,490 | $ 29,522 |
Allowances for doubtful accounts and billing adjustments | 1,512 | 1,399 |
Deferred revenue | 27,461 | 31,713 |
Share-based compensation | 25,497 | 22,088 |
Foreign currency translation | 4,019 | |
Other, net | 38,341 | 34,673 |
Total deferred income tax assets | 131,320 | 119,395 |
Less valuation allowance for deferred income tax assets | (21,301) | (18,446) |
Net deferred income tax assets | 110,019 | 100,949 |
Deferred income tax liabilities: | ||
Excess tax over financial statement depreciation | (63,432) | (61,161) |
Computer software development costs | (80,837) | (82,835) |
Purchase accounting adjustments | (344,547) | (114,171) |
Foreign currency translation | (4,522) | |
Other, net | (33,700) | (24,462) |
Total deferred income tax liabilities | (522,516) | (287,151) |
Net deferred income tax liabilities | (412,497) | (186,202) |
Total net deferred tax assets (liabilities): | ||
Noncurrent deferred tax asset | 7,055 | 6,242 |
Noncurrent deferred tax liability | (419,552) | (192,444) |
Net deferred tax liability | $ (412,497) | $ (186,202) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes | ||
Deferred tax assets from net operating losses carryforwards | $ 8,500 | $ 4,500 |
Deferred tax assets from capital loss carry forward | 400 | |
Deferred tax assets from federal and state income tax credit carryforwards | 25,600 | 25,000 |
Valuation allowance for deferred income tax assets | 21,301 | $ 18,446 |
Decrease in valuation allowance for deferred income tax assets | 2,900 | |
Undistributed earnings | 81,100 | |
Decrease in liability for prior year uncertain tax position | $ 3,400 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes | ||
Unrecognized Tax Benefits, Beginning Balance | $ 13.1 | |
Additions based on tax positions related to current year | 3.4 | |
Additions for tax positions of prior years | 3 | |
Decreases resulting from settlements with tax authorities | 3 | |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | 3.4 | |
Unrecognized Tax Benefits, Ending Balance | 16.5 | |
Gross accrued interest and penalties on unrecognized tax benefits | 1.8 | $ 0.7 |
Unrecognized income tax benefits that, if recognized, would affect the effective tax rates | 17 | 13.2 |
Unrecognized income tax benefits that, if recognized, would affect the effective tax rates , interest and penalties | $ 1.2 | $ 0.5 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 129,120 |
2,018 | 132,015 |
2,019 | 132,242 |
2,020 | 57,083 |
2,021 | 21,035 |
Thereafter | 34,644 |
Total future minimum commitment payments | $ 506,139 |
Commitments and Contingencie100
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 20, 2016 | |
Loss Contingencies [Line Items] | |||||
Rental expense under all operating leases | $ 122,900,000 | $ 124,800,000 | $ 105,200,000 | ||
Settlement fund | $ 6,500,000 | ||||
Settlement expense | $ 13,000,000 | ||||
Settlement for lawsuit | 21,719,000 | ||||
Estimated gross settlement exposure | 13,800,000 | 13,800,000 | |||
Cardholders' overdrawn account balances | 21,200,000 | 21,200,000 | 17,900,000 | ||
Cardholders' loss reserve | 10,500,000 | 10,500,000 | 9,400,000 | ||
Recognized gain on investment | 811,000 | 4,038,000 | 793,000 | ||
MetaBank | |||||
Loss Contingencies [Line Items] | |||||
Advance on behalf of cardholders | 1,000,000 | 1,000,000 | |||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Cardholder overdraft limit | 10 | 10 | |||
Private Equity Funds | |||||
Loss Contingencies [Line Items] | |||||
Contributions made | 20,100,000 | 20,100,000 | 15,000,000 | ||
Investments, including gains | 22,800,000 | 22,800,000 | 17,600,000 | ||
Recognized gain on investment | 800,000 | $ 4,000,000 | $ 800,000 | ||
Private Equity Funds | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Commitment to invest | $ 20,000,000 | $ 20,000,000 | |||
Percentage of ownership interests | 50.00% | 50.00% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2016 | |
TSYS Retirement Savings Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employer contribution, percentage of eligible compensation | 100.00% |
TSYS Stock Repurchase Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Percentage of employer contribution | 15.00% |
Maximum | TSYS Retirement Savings Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employee contribution, percentage of eligible compensation | 4.00% |
Percentage of employer discretionary contributions | 4.00% |
Employee Benefit Plans - Contri
Employee Benefit Plans - Contributions Charged to Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
TSYS Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions charged to expense | $ 21,077 | $ 24,169 | $ 17,531 |
TSYS Stock Repurchase Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions charged to expense | $ 1,514 | $ 1,378 | $ 1,288 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Uncategorized [Abstract] | |||
Dividends on common stock | $ 73.4 | $ 73.7 | $ 74.8 |
Equity - Summary of Equity Comp
Equity - Summary of Equity Compensation Plans (Details) - Equity compensation plans not approved by security holders shares in Thousands | Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of securities to be issued upon exercise of outstanding options, warrants and rights | 4,891 | |
Weighted-average exercise price of outstanding options, warrants and rights | $ / shares | $ 32.78 | [1] |
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | 6,962 | [2] |
[1] | Weighted-average exercise price represents 2.9 million options only and does not include restricted share units that have no exercise price | |
[2] | Shares available for future grants under the Total System Services, Inc. 2007 Omnibus Plan and 2012 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares. |
Equity -Summary of Equity Compe
Equity -Summary of Equity Compensation Plans Narrative (Details) - shares shares in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at end of year | 2,996 | 2,887 | 4,892 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)item$ / sharesshares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equal annual installments of stock options exercisable | item | 3 | ||
Expiration period of employee stock option | 10 years | ||
Share-based compensation | $ 43,728 | $ 41,549 | $ 30,790 |
Weighted average fair value | $ / shares | $ 8.50 | $ 8.27 | $ 7.66 |
Weighted average exercise price | $ / shares | $ 47.01 | $ 39.01 | $ 30.96 |
Risk-free interest rate | 1.24% | 1.73% | 2.01% |
Expected volatility | 21.53% | 20.80% | 25.06% |
Expected term (years) | 4 years 6 months | 6 years 3 months 18 days | 6 years 6 months |
Dividend yield | 0.86% | 1.04% | 1.29% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Required service period for retirement eligible employees | 12 months | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Required service period for retirement eligible employees | 18 months | ||
2015 Performance Share Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to non vested share-based compensation arrangements | $ 18,600 | ||
2015 Market-Based Share Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to non vested share-based compensation arrangements | $ 1,900 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of fair market value of common stock in exercise price | 100.00% | ||
Award vesting period | 3 years | ||
Unrecognized compensation cost related to non vested share-based compensation arrangements | $ 2,700 | ||
Unrecognized compensation cost related to non vested share-based compensation arrangements, remaining weighted average recognition period | 1 year 7 months 6 days | ||
Weighted average fair value | $ / shares | $ 8.50 | $ 8.27 | $ 7.66 |
Weighted average exercise price | $ / shares | $ 47.01 | $ 39.01 | $ 30.96 |
Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period of employee stock option | 10 years | ||
Omnibus Stock Incentive Plan 2007 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares granted to participants pursuant to awards | shares | 5 | ||
Omnibus Stock Incentive Plan, Twenty Twelve | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares granted to participants pursuant to awards | shares | 17 | ||
2002 Long Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares granted to participants pursuant to awards | shares | 9.4 | ||
Long Term Incentive Plan 2000 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares granted to participants pursuant to awards | shares | 2.4 | ||
Nonvested Restricted Stock Bonus Awards | Netspend Holdings Inc | Maximum | Certain key Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Performance Shares | 2014 Performance Shares | attained in 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance shares grant expected to vest | 200.00% | ||
Unvested Restricted Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to non vested share-based compensation arrangements | $ 17,700 | ||
Unrecognized compensation cost related to non vested share-based compensation arrangements, remaining weighted average recognition period | 1 year 8 months 12 days |
Share-Based Compensation - Numb
Share-Based Compensation - Number of Shares Granted Annually (Details) - Unvested Restricted Awards - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 362,804 | 388,211 | 672,724 |
Market value | $ 16.8 | $ 14.9 | $ 20.6 |
Share-Based Compensation - Nonv
Share-Based Compensation - Nonvested Shares (Details) - Unvested Restricted Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||
Outstanding at beginning of year | 1,146,000 | 1,769,000 | 1,783,000 |
Granted | 362,804 | 388,211 | 672,724 |
Vested | (562,000) | (930,000) | (602,000) |
Forfeited/canceled | (84,000) | (81,000) | (85,000) |
Outstanding at end of year | 863,000 | 1,146,000 | 1,769,000 |
Weighted Average Grant-Date Fair Value | |||
Outstanding at beginning of year | $ 31.11 | $ 26.75 | $ 24.19 |
Granted | 46.23 | 38.38 | 30.67 |
Vested | 29.95 | 26.05 | 23.74 |
Forfeited/canceled/adjusted | 36.79 | 28.78 | 25.47 |
Outstanding at end of year | $ 37.78 | $ 31.11 | $ 26.75 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Based Awards Granted (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 687,685 | 613,473 | 1,046,372 |
Market Based Share Awards | 2016 Market Based Share Plan | Performance Period Ending December 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 6,403 | ||
Market Based Share Awards | 2016 Market Based Share Plan | Performance Period Ending December 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 52,404 | ||
Market Based Share Awards | 2015 Market-Based Share Plan | Performance Period Ending December 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 57,982 | ||
Market Based Share Awards | 2015 Market-Based Share Plan | Performance Period Ending July 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 25,000 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Expected to Vest | 903,364 | 687,015 | 389,242 |
Performance Shares | 2016 Performance Share Plan | Performance Period Ending December 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 15,605 | ||
Performance Shares | 2016 Performance Share Plan | Performance Period Ending December 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 14,940 | ||
Performance Shares | 2016 Performance Share Plan | Performance Period Ending December 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 29,332 | ||
Performance Shares | 2016 Performance Share Plan | Performance Period Ending December 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 67,517 | ||
Performance Shares | 2016 Performance Share Plan | Performance Period Ending December 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 78,220 | ||
Performance Shares | 2016 Performance Share Plan | Performance Period Ending December 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 122,284 | ||
Performance Shares | 2016 Performance Share Plan | Performance Period Ending December 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 144,995 | ||
Performance Shares | 2015 Performance Share Plan | Performance Period Ending December 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 135,289 | ||
Performance Shares | 2015 Performance Share Plan | Performance Period Ending December 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 165,543 | ||
Performance Shares | 2014 Performance Shares | Performance Period Ending December 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Granted | 211,593 |
Share-Based Compensation - Awar
Share-Based Compensation - Awards Authorized (Details) - Performance Shares - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Number of Shares Awarded | 531,700 | 383,814 | 211,593 |
Potential Number of Performance-Based Shares to be Vested | 903,364 | 687,015 | 389,242 |
Potential Number of Performance-Based Shares to be Vested period | 2,019 | 2,018 | 2,017 |
Share-Based Compensation - P111
Share-Based Compensation - Performance-based Nonvested Shares (Details) - Performance Shares - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||
Outstanding at beginning of year | 918 | 766 | 1,049 |
Number of shares granted | 540 | 384 | 211 |
Vested | (140) | (241) | (258) |
Forfeited/canceled/adjusted | (336) | 9 | (236) |
Outstanding at end of year | 982 | 918 | 766 |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of year | $ 31.19 | $ 25.86 | $ 22.75 |
Granted | 45.91 | 36.84 | 30.89 |
Vested | 37.91 | 22.92 | 17.57 |
Forfeited/canceled/adjusted | 37.70 | 22.20 | 25.62 |
Outstanding at end of year | $ 33.43 | $ 31.19 | $ 25.86 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average Assumptions and Fair Value of Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-Based Compensation. | |||
Number of options granted | 687,685 | 613,473 | 1,046,372 |
Weighted average exercise price | $ 47.01 | $ 39.01 | $ 30.96 |
Risk-free interest rate | 1.24% | 1.73% | 2.01% |
Expected volatility | 21.53% | 20.80% | 25.06% |
Expected term (years) | 4 years 6 months | 6 years 3 months 18 days | 6 years 6 months |
Dividend yield | 0.86% | 1.04% | 1.29% |
Weighted average fair value | $ 8.50 | $ 8.27 | $ 7.66 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options: | |||
Number of options granted | 687,685 | 613,473 | 1,046,372 |
Weighted Average Exercise Price | |||
Granted | $ 47.01 | $ 39.01 | $ 30.96 |
Weighted average fair value of options granted during the year | $ 8.50 | $ 8.27 | $ 7.66 |
Stock Options | |||
Options: | |||
Outstanding at beginning of year | 2,887,000 | 4,892,000 | 5,752,000 |
Number of options granted | 688,000 | 613,000 | 1,046,000 |
Exercised | (500,000) | (2,586,000) | (1,850,000) |
Forfeited/canceled | (79,000) | (32,000) | (56,000) |
Outstanding at end of year | 2,996,000 | 2,887,000 | 4,892,000 |
Options exercisable at year-end | 1,877,000 | 1,439,000 | 2,781,000 |
Weighted Average Exercise Price | |||
Outstanding at beginning of year | $ 28.07 | $ 23.83 | $ 20.96 |
Granted | 47.01 | 39.01 | 30.96 |
Exercised | 23.43 | 22.68 | 18.79 |
Forfeited/canceled | 43.49 | 20.79 | 28.88 |
Outstanding at end of year | 32.78 | 28.07 | 23.83 |
Options exercisable at year-end | 28.45 | 25.17 | 22.86 |
Weighted average fair value of options granted during the year | $ 8.50 | $ 8.27 | $ 7.66 |
Average remaining contractual life (in years) | 7 years 3 months 18 days | ||
Aggregate intrinsic value (in thousands) | $ 49,323 | ||
Average remaining contractual life (in years) | 6 years 7 months 6 days | ||
Aggregate intrinsic value (in thousands) | $ 39,066 |
Share-Based Compensation - S114
Share-Based Compensation - Stock Option Exercises (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-Based Compensation. | |||
Options Exercised and Issued from Treasury | 500 | 2,586 | 1,850 |
Intrinsic Value | $ 12,984 | $ 67,702 | $ 22,883 |
Treasury Stock - Summary and Re
Treasury Stock - Summary and Related Carrying Value (Details) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Uncategorized [Abstract] | |||
Treasury stock, shares | 19,314 | 19,988 | 17,836 |
Treasury Shares Cost | $ 646,047 | $ 641,664 | $ 453,230 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2015 | Nov. 30, 2015 | Jan. 31, 2014 | Apr. 30, 2010 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 27, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Expiration date of shares authorized to be repurchased under stock repurchase plan | Apr. 30, 2015 | ||||||||
Total Number of Shares Purchased | 500,000 | 5,150,000 | 5,200,000 | ||||||
Average Price Paid per Share | $ 48.13 | $ 49.29 | $ 48.59 | $ 48.57 | $ 47.01 | $ 31.79 | |||
Stock repurchase value | $ 24,287 | $ 242,085 | $ 165,297 | ||||||
Treasury stock acquired as a result of share withholding for taxes | 144,839 | 3,344 | |||||||
Value of treasury stock acquired as a result of share withholding for taxes | $ 6,000 | $ 200 | |||||||
Maximum | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Shares authorized to be repurchased under stock repurchase plan | 28,000,000 | 10,000,000 | 20,000,000 | ||||||
Time shares may be purchased | 2 years |
Treasury Stock - Purchases of C
Treasury Stock - Purchases of Common Stock on Monthly Basis (Details) - $ / shares shares in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Nov. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2015 | |
Uncategorized [Abstract] | |||||||
Total Number of Shares Purchased | 500 | 5,150 | 5,200 | ||||
Average Price Paid per Share | $ 48.13 | $ 49.29 | $ 48.59 | $ 48.57 | $ 47.01 | $ 31.79 | |
Total Number of Cumulative Shares Purchased as Part of Publicly Announced Plans or Programs | 5,650 | 5,350 | 5,650 | 5,150 | |||
Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs | 14,350 | 14,650 | 14,350 | 14,850 |
Other Comprehensive Income (118
Other Comprehensive Income (Loss) - Income Tax Effects Allocated to AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ (33,544) | $ (11,926) | $ 3,749 | $ 1,408 |
Pretax Amount | (24,172) | (23,269) | (17,280) | 4,441 |
Tax Effect | (1,558) | (1,651) | (1,605) | 2,100 |
Net-of-Tax Amount | (22,614) | (21,618) | (15,675) | 2,341 |
Ending Balance | (56,158) | (33,544) | (11,926) | 3,749 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (35,041) | (13,592) | 2,004 | |
Pretax Amount | (36,341) | (22,997) | (17,143) | |
Tax Effect | (5,872) | (1,548) | (1,547) | |
Net-of-Tax Amount | (30,469) | (21,449) | (15,596) | |
Ending Balance | (65,510) | (35,041) | (13,592) | 2,004 |
Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 28 | 28 | 28 | |
Ending Balance | 28 | 28 | 28 | 28 |
Gain on available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 2,503 | 1,105 | 1,773 | |
Pretax Amount | 11,394 | 2,177 | (1,058) | |
Tax Effect | 4,035 | 779 | (390) | |
Net-of-Tax Amount | 7,359 | 1,398 | (668) | |
Ending Balance | 9,862 | 2,503 | 1,105 | 1,773 |
Change in AOCI related to postretirement healthcare plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (1,034) | 533 | (56) | |
Pretax Amount | 775 | (2,449) | 921 | |
Tax Effect | 279 | (882) | 332 | |
Net-of-Tax Amount | 496 | (1,567) | 589 | |
Ending Balance | $ (538) | $ (1,034) | $ 533 | $ (56) |
Segment Reporting, including119
Segment Reporting, including Geographic Area Data and Major Customers - Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Operating income | $ 573,382 | $ 534,107 | $ 431,640 |
Share-based compensation | 43,728 | 41,549 | 30,790 |
TransFirst and NetSpend M&A and integration expenses1 | 28,176 | 3,217 | |
Litigation Settlement, Amount | 21,719 | ||
Acquisition intangible amortization | 189,990 | 92,521 | 96,970 |
Adjusted operating income (non-GAAP) (b) | 856,995 | 668,177 | 562,617 |
Total revenues | 4,170,077 | 2,779,541 | 2,446,877 |
Less: reimbursable items | 259,543 | 280,192 | 253,899 |
Revenues before reimbursable items | 3,910,534 | 2,499,349 | 2,192,978 |
Less: interchange and assessments expenses | 868,658 | ||
Net revenue (non-GAAP) (h) | 3,041,876 | 2,499,349 | 2,192,978 |
North America Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,349,865 | 1,305,999 | 1,102,316 |
Net revenue (non-GAAP) (h) | 1,174,304 | 1,118,332 | 936,957 |
International Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 330,898 | 344,030 | 352,196 |
Net revenue (non-GAAP) (h) | 308,552 | 326,834 | 338,126 |
Merchant Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,828,469 | 549,135 | 509,679 |
Net revenue (non-GAAP) (h) | 898,175 | 473,806 | 435,209 |
Netspend | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 660,845 | 580,377 | 482,686 |
Net revenue (non-GAAP) (h) | 660,845 | 580,377 | 482,686 |
Segment External | |||
Segment Reporting Information [Line Items] | |||
Net revenue (non-GAAP) (h) | 3,041,876 | 2,499,349 | 2,192,978 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues before reimbursable items | 3,950,414 | 2,532,830 | 2,214,202 |
Net revenue (non-GAAP) (h) | $ 3,081,756 | $ 2,532,830 | $ 2,214,202 |
Operating margin | 13.80% | 19.20% | 17.60% |
Operating margin on net revenue | 28.20% | 26.70% | 25.70% |
Operating Segments | North America Services | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (non-GAAP) (b) | $ 468,251 | $ 429,064 | $ 351,512 |
Revenues before reimbursable items | 1,206,013 | 1,147,254 | 954,082 |
Net revenue (non-GAAP) (h) | $ 1,206,013 | $ 1,147,254 | $ 954,082 |
Operating margin on net revenue | 38.80% | 37.40% | 36.80% |
Operating Segments | International Services | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (non-GAAP) (b) | $ 56,774 | $ 60,087 | $ 55,123 |
Revenues before reimbursable items | 313,631 | 331,159 | 341,785 |
Net revenue (non-GAAP) (h) | $ 313,631 | $ 331,159 | $ 341,785 |
Operating margin on net revenue | 18.10% | 18.10% | 16.10% |
Operating Segments | Merchant Services | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (non-GAAP) (b) | $ 307,595 | $ 150,225 | $ 134,872 |
Revenues before reimbursable items | 1,767,191 | 474,040 | 435,649 |
Net revenue (non-GAAP) (h) | $ 898,533 | $ 474,040 | $ 435,649 |
Operating margin on net revenue | 34.20% | 31.70% | 31.00% |
Operating Segments | Netspend | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (non-GAAP) (b) | $ 160,371 | $ 137,837 | $ 128,285 |
Revenues before reimbursable items | 663,579 | 580,377 | 482,686 |
Net revenue (non-GAAP) (h) | $ 663,579 | $ 580,377 | $ 482,686 |
Operating margin on net revenue | 24.20% | 23.70% | 26.60% |
Operating Segments | Corporate Administration | |||
Segment Reporting Information [Line Items] | |||
Adjusted operating income (non-GAAP) (b) | $ (135,996) | $ (109,036) | $ (107,175) |
Intersegment Elimination | |||
Segment Reporting Information [Line Items] | |||
Revenues before reimbursable items | 39,880 | 33,481 | 21,224 |
Net revenue (non-GAAP) (h) | $ 39,880 | $ 33,481 | $ 21,224 |
Segment Reporting, including120
Segment Reporting, including Geographic Area Data and Major Customers - Total Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 6,366,177 | $ 3,877,895 |
Operating Segments | North America Services | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,595,747 | 3,485,924 |
Operating Segments | International Services | ||
Segment Reporting Information [Line Items] | ||
Total assets | 296,663 | 348,714 |
Operating Segments | Merchant Services | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,295,509 | 689,781 |
Operating Segments | Netspend | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,474,595 | 1,504,740 |
Intersegment Elimination | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ (4,296,337) | $ (2,151,264) |
Segment Reporting, including121
Segment Reporting, including Geographic Area Data and Major Customers - Depreciation expense by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 373,546 | $ 258,264 | $ 248,018 |
Acquisition intangible amortization | 189,990 | 92,521 | 96,970 |
Depreciation and amortization, discontinued operations | 246,620 | ||
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 179,995 | 163,390 | |
Depreciation and amortization, discontinued operations | 147,502 | ||
Operating Segments | North America Services | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 110,343 | 99,544 | 86,513 |
Operating Segments | International Services | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 30,966 | 34,892 | |
Depreciation and amortization, discontinued operations | 38,909 | ||
Operating Segments | Merchant Services | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 25,553 | 18,268 | 14,571 |
Operating Segments | Netspend | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 13,133 | 10,686 | 7,509 |
Corporate Administration and Other | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 3,561 | $ 2,353 | $ 2,148 |
Segment Reporting, including122
Segment Reporting, including Geographic Area Data and Major Customers - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | $ 282,345 | $ 289,898 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | 236,913 | 241,814 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | 38,866 | 41,953 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | $ 6,566 | $ 6,131 |
Segment Reporting, including123
Segment Reporting, including Geographic Area Data and Major Customers - Additional Information (Detail) - customer | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, including Geographic Area Data and Major Customers | |||
Entity-wide revenue, major customer, number | 0 | 0 | 0 |
Segment Reporting, including124
Segment Reporting, including Geographic Area Data and Major Customers - Reconciliation by Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 4,170,077 | $ 2,779,541 | $ 2,446,877 | ||
Percentage Of Revenue | 100.00% | 100.00% | 100.00% | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 3,520,001 | $ 2,110,044 | $ 1,770,199 | ||
Percentage Of Revenue | 84.40% | 75.90% | 72.30% | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 284,733 | [1] | $ 289,083 | $ 290,496 | |
Percentage Of Revenue | 6.80% | [1] | 10.40% | 11.90% | |
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | [1] | $ 307,121 | $ 304,650 | $ 305,089 | |
Percentage Of Revenue | [1] | 7.40% | 11.00% | 12.50% | |
Mexico | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 15,334 | $ 16,558 | $ 16,216 | ||
Percentage Of Revenue | 0.40% | 0.60% | 0.70% | ||
Other | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | [1] | $ 42,888 | $ 59,206 | $ 64,877 | |
Percentage Of Revenue | [1] | 1.00% | 2.10% | 2.70% | |
North America Services | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 1,349,865 | $ 1,305,999 | $ 1,102,316 | ||
North America Services | United States | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,032,381 | 981,588 | 778,766 | ||
North America Services | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 284,005 | [1] | 288,728 | 290,248 | |
North America Services | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | [1] | 788 | 796 | 781 | |
North America Services | Mexico | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 14,887 | 16,558 | 16,216 | ||
North America Services | Other | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | [1] | 17,804 | 18,329 | 16,305 | |
International Services | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 330,898 | 344,030 | 352,196 | ||
International Services | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | [1] | 23 | |||
International Services | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | [1] | 306,106 | 303,832 | 304,308 | |
International Services | Mexico | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 447 | ||||
International Services | Other | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | [1] | 24,322 | 40,198 | 47,888 | |
Merchant Services | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,828,469 | 549,135 | 509,679 | ||
Merchant Services | United States | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,826,775 | 548,079 | 508,747 | ||
Merchant Services | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 705 | [1] | 355 | 248 | |
Merchant Services | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | [1] | 227 | 22 | ||
Merchant Services | Other | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | [1] | 762 | 679 | 684 | |
Netspend | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 660,845 | 580,377 | 482,686 | ||
Netspend | United States | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 660,845 | $ 580,377 | $ 482,686 | ||
[1] | 2014(in thousands) North AmericaServices InternationalServices MerchantServices Netspend Total Percentage of Revenues United States$ 778,766 - 508,747 482,686$ 1,770,199 72.3%Europe1 781 304,308 - - 305,089 12.5Canada1 290,248 - 248 - 290,496 11.9Mexico 16,216 - - - 16,216 0.7Other1 16,305 47,888 684 - 64,877 2.7Total$ 1,102,316 352,196 509,679 482,686$ 2,446,877 100.0%Revenues are impacted by movements in foreign currency exchange rates |
Supplementary Cash Flow Info125
Supplementary Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Supplemental cash flow information: | ||||
Equipment and software acquired under capital lease obligations | $ 1.8 | $ 4.1 | $ 17.9 | |
Financing agreement for perpetual software licenses | ||||
Supplemental cash flow information: | ||||
Financing agreement amount | $ 0 | $ 30 | $ 13.6 | $ 13.6 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ / shares in Units, £ in Millions, shares in Millions | Mar. 17, 2016USD ($) | Mar. 31, 2016GBP (£) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 28, 2014 | Jul. 01, 2013USD ($)shareholder$ / sharesshares |
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 3,270,952,000 | $ 3,270,952,000 | $ 1,545,424,000 | |||||||
Identifiable intangible assets | 814,100,000 | 814,100,000 | ||||||||
Litigation Settlement, Amount | 21,719,000 | |||||||||
Purchase of noncontrolling interest | $ 5,878,000 | $ 37,500,000 | ||||||||
Business acquisition, noncontrolling interest, redemption period | 2,017 | |||||||||
Business acquisition, noncontrolling interest, redemption value | 27,400,000 | $ 27,400,000 | ||||||||
Netspend Holdings Inc | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, cost of acquired entity, purchase price | $ 750,000 | 1,400,000,000 | ||||||||
Number of shareholders | shareholder | 5 | |||||||||
Share price per share | $ / shares | $ 16 | |||||||||
Shares held by dissenting shareholders | shares | 1.6 | |||||||||
Goodwill, Period Increase (Decrease) | $ 8,500,000 | |||||||||
Value of shares held by dissenting shareholders | $ 25,700,000 | |||||||||
Netspend Holdings Inc | Dissenting Shareholders | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Litigation Settlement, Amount | $ 38,600,000 | |||||||||
TransFirst | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, cost of acquired entity, purchase price | $ 2,350,000,000 | 2,351,400,000 | ||||||||
Goodwill | 1,728,088,000 | 1,728,088,000 | ||||||||
Identifiable intangible assets | $ 814,131,000 | $ 814,131,000 | ||||||||
Assumption used in fair value, measurement, discount rate | 8.50% | 8.50% | ||||||||
Assumption used in fair value measurement, royalty rate low range | 1.00% | 1.00% | ||||||||
Assumption used in fair value measurement, royalty rate high range | 3.00% | 3.00% | ||||||||
Assumption used in fair value measurement,, attrition rate low range | 11.00% | 11.00% | ||||||||
Assumption used in fair value measurement, attrition rate high range | 16.00% | 16.00% | ||||||||
Assumption used in fair value, measurement, effective tax rate | 40.00% | 40.00% | ||||||||
Assumption used in fair value, measurement, long-term sustainable growth rate | 3.00% | |||||||||
Revenue since acquisition date | $ 1,300,000,000 | |||||||||
Operating income since acquisition date | $ 30,000,000 | |||||||||
TransFirst | Bridge Loan Facility | Selling, general and administrative expenses | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition-related costs | $ 32,300,000 | |||||||||
TransFirst | Bridge Loan Facility | Interest expense | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition-related costs | $ 9,800,000 | |||||||||
Merchants Limited | TSYS Managed Services EMEA Limited | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of ownership interest acquired from minority interest holders | 45.00% | 45.00% | ||||||||
Purchase of noncontrolling interest | £ 4.2 | $ 5,900,000 | ||||||||
Repayment of debt assumed upon acquisition | £ 2.2 | $ 3,000,000 | ||||||||
CPAY | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of equity interest | 25.00% |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed Recognized (Details) - USD ($) | Mar. 17, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Identifiable intangible assets | $ 814,100,000 | ||
Goodwill | 3,270,952,000 | $ 1,545,424,000 | |
TransFirst | |||
Consideration | |||
Cash | 2,351,400,000 | ||
Fair value of total consideration transferred | $ 2,350,000,000 | 2,351,400,000 | |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Cash | 5,907,000 | ||
Accounts receivable, net | 62,313,000 | ||
Property equipment and software | 12,726,000 | ||
Identifiable intangible assets | 814,131,000 | ||
Deferred tax asset | 2,244,000 | ||
Other assets | 7,509,000 | ||
Deferred tax liability | (224,654,000) | ||
Other liabilities | (56,864,000) | ||
Total identifiable net assets | 623,312,000 | ||
Goodwill | 1,728,088,000 | ||
Total identifiable assets acquired and liabilities assumed | 2,351,400,000 | ||
Increase in business acquisition, cost of acquired entity, purchase price | 55,000 | ||
Increase in identifiable intangible assets | 2,000,000 | ||
Increase in liabilities | 363,700 | ||
Increase in deferred tax liability | 18,000,000 | ||
Increase in goodwill | $ 20,400,000 |
Acquisitions - Amounts of Asset
Acquisitions - Amounts of Assets Acquired and Liabilities Assumed Recognized (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Identifiable intangible assets | $ 814,100,000 | ||
Goodwill | 3,270,952,000 | $ 1,545,424,000 | |
Netspend Holdings Inc | |||
Consideration | |||
Business acquisition, cost of acquired entity, purchase price | $ 750,000 | $ 1,400,000,000 |
Acquisitions - Estimated Fair V
Acquisitions - Estimated Fair Value of Identifiable Intangible Assets Acquired (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Acquired identifiable intangible assets, fair value | $ 814.1 |
Acquired intangible assets, weighted average useful lives | 7 years 1 month 6 days |
Merchant Relationships | |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Acquired identifiable intangible assets, fair value | $ 588 |
Acquired intangible assets, weighted average useful lives | 7 years |
Channel Partner | |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Acquired identifiable intangible assets, fair value | $ 121 |
Acquired intangible assets, weighted average useful lives | 10 years |
Current Technology | |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Acquired identifiable intangible assets, fair value | $ 72 |
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 | $ 16 |
Acquired intangible assets, weighted average useful lives | 1 year |
Covenants-Not-to-Compete | |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Acquired identifiable intangible assets, fair value | $ 15 |
Acquired intangible assets, weighted average useful lives | 3 years |
Favorable Lease | |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Acquired identifiable intangible assets, fair value | $ 2.1 |
Acquired intangible assets, weighted average useful lives | 5 years 7 months 6 days |
Acquisitions - Estimated Fai130
Acquisitions - Estimated Fair Value of Identifiable Intangible Assets Acquired (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Acquired identifiable intangible assets, fair value | $ 814.1 |
Acquired intangible assets, weighted average useful lives | 7 years 1 month 6 days |
Current Technology | |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Acquired identifiable intangible assets, fair value | $ 72 |
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 | $ 16 |
Acquired intangible assets, weighted average useful lives | 1 year |
Covenants-Not-to-Compete | |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Acquired identifiable intangible assets, fair value | $ 15 |
Acquired intangible assets, weighted average useful lives | 3 years |
Acquisitions - Pro Forma Revenu
Acquisitions - Pro Forma Revenue and Earnings (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | |||
Revenue | $ 4,170,077 | $ 2,779,541 | $ 2,446,877 |
Net income attributable to TSYS common shareholders | $ 319,638 | $ 364,044 | $ 322,872 |
Basic EPS attributable to TSYS common shareholders | $ 1.74 | $ 1.98 | $ 1.73 |
Diluted EPS attributable to TSYS common shareholders | $ 1.73 | $ 1.97 | $ 1.72 |
Revenue | $ 4,562,236 | $ 3,230,703 | |
Net income attributable to TSYS common shareholders | $ 347,248 | $ 317,549 | |
Basic EPS attributable to TSYS common shareholders | $ 1.89 | $ 1.73 | |
Diluted EPS attributable to TSYS common shareholders | $ 1.88 | $ 1.72 |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | |||
Revenue | $ 4,170,077 | $ 2,779,541 | $ 2,446,877 |
Net income attributable to TSYS common shareholders | $ 319,638 | $ 364,044 | $ 322,872 |
Basic EPS attributable to TSYS common shareholders | $ 1.74 | $ 1.98 | $ 1.73 |
Diluted EPS attributable to TSYS common shareholders | $ 1.73 | $ 1.97 | $ 1.72 |
Revenue | $ 4,562,236 | $ 3,230,703 | |
Net income attributable to TSYS common shareholders | $ 347,248 | $ 317,549 | |
Basic EPS attributable to TSYS common shareholders | $ 1.89 | $ 1.73 | |
Diluted EPS attributable to TSYS common shareholders | $ 1.88 | $ 1.72 | |
Netspend | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Revenue | $ 660,845 | $ 580,377 | $ 482,686 |
Collaborative Arrangement - Add
Collaborative Arrangement - Additional Information (Details) | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of ownership interest in an enterprise jointly owned with two other entities | 45.00% |
Earnings Per Share - Common Sto
Earnings Per Share - Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic EPS: | |||
Net income attributable to TSYS common shareholders | $ 319,638 | $ 364,044 | $ 322,872 |
Basic EPS (a)/(b) | $ 1.74 | $ 1.98 | $ 1.73 |
Diluted EPS: | |||
Net income attributable to TSYS common shareholders | $ 319,638 | $ 364,044 | $ 322,872 |
Diluted EPS (c)/(d) | $ 1.73 | $ 1.97 | $ 1.72 |
Common Stock | |||
Basic EPS: | |||
Net income attributable to TSYS common shareholders | $ 319,638 | $ 364,044 | $ 322,872 |
Add income allocated to nonvested awards1 | 1,557 | ||
Less income allocated to nonvested awards | (1,557) | (3,164) | (3,308) |
Net income allocated to common stock for EPS calculation (a) | $ 318,081 | $ 360,880 | $ 319,564 |
Average common shares outstanding (b) | 182,744 | 182,465 | 184,297 |
Basic EPS (a)/(b) | $ 1.74 | $ 1.98 | $ 1.73 |
Diluted EPS: | |||
Net income attributable to TSYS common shareholders | $ 319,638 | $ 364,044 | $ 322,872 |
Less income allocated to nonvested awards | (1,557) | (3,148) | (3,288) |
Add income allocated to nonvested awards1 | 1,557 | ||
Net income allocated to common stock for EPS calculation (c) | $ 319,638 | $ 360,896 | $ 319,584 |
Average common shares outstanding | 182,744 | 182,465 | 184,297 |
Increase due to assumed issuance of shares related to common equivalent shares outstanding | 813 | 1,157 | 1,459 |
Average nonvested awards | 891 | ||
Average common and common equivalent shares outstanding (d) | 184,448 | 183,622 | 185,756 |
Diluted EPS (c)/(d) | $ 1.73 | $ 1.97 | $ 1.72 |
Participating Securities | |||
Basic EPS: | |||
Less income allocated to nonvested awards | $ 1,557 | $ 3,164 | $ 3,308 |
Basic EPS (a)/(b) | $ 1.71 | $ 1.96 | $ 1.72 |
Diluted EPS: | |||
Less income allocated to nonvested awards | $ 1,552 | $ 3,148 | $ 3,288 |
Average common and common equivalent shares outstanding (d) | 911 | 1,617 | 1,925 |
Diluted EPS (c)/(d) | $ 1.70 | $ 1.95 | $ 1.71 |
Earnings Per Share - Participat
Earnings Per Share - Participating Securities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share Disclosure [Line Items] | |||
Convertible stock options and nonvested awards excluded from diluted EPS calculation | 400 | 600 | 1,100 |
Basic EPS: | |||
Basic EPS (a)/(b) | $ 1.74 | $ 1.98 | $ 1.73 |
Diluted EPS (c)/(d) | $ 1.73 | $ 1.97 | $ 1.72 |
Participating Securities | |||
Basic EPS: | |||
Net income allocated to nonvested awards(a) | $ 1,557 | $ 3,164 | $ 3,308 |
Nonvested awards(b) | 911 | 1,617 | 1,925 |
Basic EPS (a)/(b) | $ 1.71 | $ 1.96 | $ 1.72 |
Net income allocated to nonvested awards(c) | $ 1,552 | $ 3,148 | $ 3,288 |
Average common and common equivalent shares outstanding(d) | 911 | 1,617 | 1,925 |
Diluted EPS (c)/(d) | $ 1.70 | $ 1.95 | $ 1.71 |
Subsequent Events (Details)
Subsequent Events (Details) - CPAY - USD ($) $ in Millions | Feb. 03, 2017 | Feb. 28, 2014 |
Percentage of Additional Equity Ownership Interest in Subsidiary after Acquisition | 15.00% | |
Payments to Acquire Additional Interest in Subsidiaries | $ 37.5 | |
Redeemable noncontrolling interest | 25.00% | |
Subsequent Event | ||
Percentage of Additional Equity Ownership Interest in Subsidiary after Acquisition | 10.00% | |
Payments to Acquire Additional Interest in Subsidiaries | $ 70 | |
Redeemable noncontrolling interest | 15.00% |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Provision for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 1,757 | $ 3,222 | $ 1,758 |
Additions Changes in allowances, charges to expenses and changes to other accounts | 6,970 | (58) | 640 |
Deductions | (5,245) | (1,407) | 824 |
Balance at end of period | 3,482 | 1,757 | 3,222 |
Provision for billing adjustments | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 926 | 866 | 504 |
Additions Changes in allowances, charges to expenses and changes to other accounts | 614 | (114) | 497 |
Deductions | (180) | 174 | (135) |
Balance at end of period | 1,360 | 926 | 866 |
Provision for merchant losses | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 1,366 | 1,118 | 1,122 |
Additions Changes in allowances, charges to expenses and changes to other accounts | 1,682 | 4,667 | 1,686 |
Deductions | (1,009) | (4,419) | (1,690) |
Balance at end of period | 2,039 | 1,366 | 1,118 |
Transaction processing accruals - processing errors | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 6,457 | 4,630 | 2,409 |
Additions Changes in allowances, charges to expenses and changes to other accounts | 3,669 | 6,976 | 9,468 |
Deductions | (7,275) | (5,149) | (7,247) |
Balance at end of period | 2,851 | 6,457 | 4,630 |
Provision for fraud losses | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 9,391 | 6,312 | 5,784 |
Additions Changes in allowances, charges to expenses and changes to other accounts | 49,362 | 41,264 | 38,381 |
Deductions | (48,226) | (38,185) | (37,853) |
Balance at end of period | 10,527 | 9,391 | 6,312 |
Deferred tax valuation allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 18,446 | 18,963 | 14,691 |
Additions Changes in allowances, charges to expenses and changes to other accounts | 4,124 | 541 | 5,534 |
Deductions | (1,269) | (1,058) | (1,262) |
Balance at end of period | $ 21,301 | $ 18,446 | $ 18,963 |
Schedule II - Valuation and 138
Schedule II - Valuation and Qualifying Accounts Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Provision for fraud losses | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Fraud losses related to the acquisition | $ 49,362 | $ 41,264 | $ 38,381 |