Total System Services (TSS) 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information
Entity Registrant Name	TOTAL SYSTEM SERVICES INC
Entity Central Index Key	721,683
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		183,846,212
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents (Note 3)	$ 413,622	$ 425,354
Accounts receivable, net of allowances for doubtful accounts and billing adjustments of $4.0 million and $4.8 million as of 2017 and 2016, respectively	409,167	432,847
Prepaid expenses and other current assets (Note 3)	176,049	164,488
Total current assets	998,838	1,022,689
Goodwill (Note 2)	3,272,792	3,270,952
Other intangible assets, net of accumulated amortization of $557.0 million and $420.6 million as of 2017 and 2016, respectively	770,954	906,676
Intangible assets - computer software, net of accumulated amortization of $831.7 million and $757.4 million as of 2017 and 2016, respectively	395,144	423,188
Property and equipment, net of accumulated depreciation and amortization of $521.7 million and $480.7 million as of 2017 and 2016, respectively (Note 7)	282,490	282,345
Contract acquisition costs, net of accumulated amortization of $337.9 million and $309.7 million as of 2017 and 2016, respectively (Note 3)	223,647	235,700
Equity investments, net	150,775	133,556
Deferred income tax assets	7,485	7,055
Other assets	116,765	84,016
Total assets	6,218,890	6,366,177
Current liabilities:
Current portion of long-term borrowings (Note 4)	562,550	48,040
Accounts payable	53,460	38,712
Accrued salaries and employee benefits	58,261	67,655
Current portion of obligations under capital leases and license agreements	3,110	2,687
Other current liabilities (Note 3)	294,299	263,259
Total current liabilities	971,680	420,353
Long-term borrowings, excluding current portion (Note 4)	2,391,110	3,312,215
Deferred income tax liabilities	374,778	419,552
Obligations under capital leases and license agreements, excluding current portion	3,173	1,061
Other long-term liabilities	107,987	88,983
Total liabilities	3,848,728	4,242,164
Redeemable noncontrolling interest in consolidated subsidiary	13,402	24,093
Commitments and contingencies (Note 9)
Shareholders’ Equity
Common stock- $0.10 par value. Authorized 600,000 shares; 202,765 issued as of 2017 and 2016; 184,088 and 183,451 outstanding as of 2017 and 2016, respectively	20,277	20,276
Additional paid-in capital	249,370	279,627
Accumulated other comprehensive loss, net (Note 3)	(39,258)	(56,158)
Treasury stock, at cost (18,677 and 19,314 shares as of 2017 and 2016, respectively)	(659,072)	(646,047)
Retained earnings	2,785,443	2,502,222
Total shareholders' equity	2,356,760	2,099,920
Total liabilities and shareholders' equity	$ 6,218,890	$ 6,366,177

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Accounts receivable, allowances for doubtful accounts and billing adjustments	$ 4	$ 4.8
Computer software, accumulated amortization	831.7	757.4
Property and equipment, accumulated depreciation and amortization	$ 521.7	$ 480.7
Common stock, par value	$ 0.10	$ 0.10
Common stock, authorized	600,000	600,000
Common stock, issued	202,765	202,765
Common stock, outstanding	184,088	183,451
Treasury stock, shares	18,677	19,314
Other intangible assets
Intangible assets, accumulated amortization	$ 557	$ 420.6
Contract Acquisition Costs
Intangible assets, accumulated amortization	$ 337.9	$ 309.7

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Consolidated Statements of Income
Total revenues (Note 7)	$ 1,247,576	$ 1,146,888	$ 3,654,676	$ 3,037,853
Cost of services	898,471	840,300	2,638,214	2,166,731
Selling, general and administrative expenses	149,413	151,261	456,339	428,287
Total operating expenses	1,047,884	991,561	3,094,553	2,595,018
Operating income	199,692	155,327	560,123	442,835
Nonoperating expenses, net	(28,835)	(30,368)	(88,780)	(82,225)
Income before income taxes and equity in income of equity investments	170,857	124,959	471,343	360,610
Income taxes (Note 6)	54,628	44,247	153,917	127,966
Income before equity in income of equity investments	116,229	80,712	317,426	232,644
Equity in income of equity investments, net of tax	8,497	6,729	30,919	18,953
Net income	124,726	87,441	348,345	251,597
Net income attributable to noncontrolling interests	(1,631)	(2,089)	(4,368)	(5,909)
Net income attributable to Total System Services, Inc. (TSYS) common shareholders	$ 123,095	$ 85,352	$ 343,977	$ 245,688
Basic earnings per share (EPS) attributable to TSYS common shareholders (Note 10)	$ 0.67	$ 0.46	$ 1.87	$ 1.34
Diluted EPS attributable to TSYS common shareholders (Note 10)	$ 0.66	$ 0.46	$ 1.85	$ 1.33

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 124,726	$ 87,441	$ 348,345	$ 251,597
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	7,946	(2,668)	20,511	(16,595)
Postretirement healthcare plan adjustments	(693)	1,154	(445)	373
Unrealized gain (loss) on available-for-sale securities	(1,373)	1,165	(3,166)	1,808
Other comprehensive income (loss)	5,880	(349)	16,900	(14,414)
Comprehensive income	130,606	87,092	365,245	237,183
Comprehensive income attributable to noncontrolling interests	(1,631)	(2,089)	(4,368)	(5,577)
Comprehensive income attributable to TSYS common shareholders	$ 128,975	$ 85,003	$ 360,877	$ 231,606

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 348,345	$ 251,597
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	303,821	271,468
Provisions for cardholder losses	39,036	37,289
Share-based compensation	28,462	33,792
Provisions for bad debt expenses and billing adjustments	7,835	4,817
Charges for transaction processing provisions	5,719	3,355
Amortization of debt issuance costs	3,247	12,499
Dividends received from equity investments	20,589	15,246
Loss (gain) on foreign currency	1,250	(1,664)
Amortization of bond discount	677	529
Loss on disposal of equipment, net	1,247	314
Excess tax benefit from share-based payment arrangements		(8,951)
Deferred income tax (benefit) expense	(46,435)	4,110
Equity in income of equity investments, net of tax	(30,919)	(18,953)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accrued salaries and employee benefits	(10,315)	(9,712)
Accounts receivable	(24,582)	(48,463)
Prepaid expenses, other current assets and other long-term assets	12,118	(18,429)
Accounts payable	14,418	(15,079)
Other current liabilities and other long-term liabilities	(22,488)	37,315
Net cash provided by operating activities	652,025	551,080
Cash flows from investing activities:
Purchases of property and equipment	(42,572)	(32,134)
Additions to contract acquisition costs	(21,662)	(38,384)
Additions to internally developed computer software	(22,011)	(25,705)
Additions to licensed computer software from vendors	(23,114)	(11,112)
Cash used in acquisitions, net of cash acquired		(2,345,493)
Other investing activities	(1,436)	(4,430)
Net cash used in investing activities	(110,795)	(2,457,258)
Cash flows from financing activities:
Principal payments on long-term borrowings and, capital lease obligations and license agreements	(415,788)	(618,598)
Purchase of noncontrolling interest	(70,000)	(5,878)
Dividends paid on common stock	(55,151)	(55,000)
Subsidiary dividends paid to noncontrolling shareholders	(5,216)	(4,163)
Repurchase of common stock under plans and tax withholding	(27,895)	(5,396)
Debt issuance costs		(26,563)
Excess tax benefit from share-based payment arrangements		8,951
Proceeds from borrowings of long-term debt		2,666,295
Proceeds from exercise of stock options	15,499	9,980
Net cash provided by (used in) financing activities	(558,551)	1,969,628
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents	5,589	(5,895)
Net (decrease) increase in cash and cash equivalents	(11,732)	57,555
Cash and cash equivalents at beginning of period	425,354	389,328
Cash and cash equivalents at end of period	413,622	446,883
Supplemental cash flow information:
Interest paid	93,151	74,765
Income taxes paid, net	$ 194,435	$ 58,855

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 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 cards, payroll cards, demand deposit accounts and other financial service solutions to the underbanked and other consumers and businesses. The Company’s services are provided through three operating segments: Issuer Solutions, Merchant Solutions and Netspend. Through the Company's Issuer Solutions segment, TSYS processes information through its cardholder systems for financial and nonfinancial institutions throughout the United States and internationally. The Company's Merchant Solutions segment provides merchant services to merchant acquirers and merchants mainly in the United States. The Company’s Netspend segment provides financial service solutions to consumers and businesses in the United States. Basis of Presentation The accompanying unaudited consolidated financial statements of TSYS include the accounts of TSYS and its wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and, therefore, do not include all information and footnotes required by U.S. GAAP for complete financial statements. The preparation of the consolidated financial statements requires management of the Company to make estimates and assumptions relating to the reported amounts of assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates and assumptions are developed based upon all information available. Actual results could differ from estimated amounts. All adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair presentation of financial position and results of operations for the periods covered by this report, have been included. Certain prior period amounts have been reclassified to conform to the current period’s presentation, which includes the following changes: The Company had investments in private equity funds as of December 31, 2016 with a value of $24.5 million. During the nine months ended September 30, 2017 and in prior periods, this investment was reclassified from other assets to equity investments on the balance sheets. The income statement impact was to reclassify an immaterial amount of gains and losses from nonoperating expenses to equity in income of equity investments. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s summary of significant accounting policies, consolidated financial statements and related notes appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission (SEC). Results of interim periods are not necessarily indicative of results to be expected for the year. Recently Adopted Accounting Pronouncements The Company adopted the following Accounting Standards Updates (ASUs) on January 1, 2017: 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 adoption of this standard results in the 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 recorded excess tax benefits of $11.1 million in its provision for income taxes rather than as an increase to additional paid-in capital for the nine months ended September 30, 2017 on a prospective basis. Therefore, the prior period presented has not been adjusted. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share using the treasury stock method, which did not have a material impact on its diluted earnings per share for the three and nine months ended September 30, 2017. The Company elected to apply the presentation requirement for cash flows related to excess tax benefits prospectively, and thus, the prior period presented has not been adjusted. This adoption resulted in an increase in net cash provided by operating activities and a decrease in net cash from financing activities of $11.1 million for the nine months ended September 30, 2017. ASU 2016-19 “ Technical Corrections,” which required 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 were 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 was 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 and was adopted on a prospective basis. The adoption of this ASU resulted in the Company's recording of acquired software of $10.7 million as an intangible asset at present value rather than treating the software as a lease arrangement. During the three and nine months ended September 30, 2017, $1.5 million and $2.7 million of expense, respectively, was classified as amortization expense instead of rental expense. ASU 2017- 04 “Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment,” which modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. An entity should apply the amendments in this Update on a prospective basis. The ASU is effective for the Company on January 1, 2020. Early adoption is permitted by all entities for interim or annual goodwill impairment test performed on testing dates after January 1, 2017. The Company early adopted this ASU in May 2017 in conjunction with its annual goodwill impairment testing. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows. New Accounting Pronouncements In September 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-13 “Revenue Recognition (Topic 605), Revenues from Customers (Topic 606), Leases (Topic 840) and Leases (Topic 842)”, which made amendments to SEC paragraphs pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and recession of prior SEC Staff Announcements and Observer comments. This guidance, which is effective immediately, generally relates to the adoption of ASC 606 and 842. 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 July 2017, the FASB issued ASU 2017-11 “Earnings per share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815)” . Under this ASU, a financial instrument with a down-round feature would no longer be classified as a liability solely because that feature exists. Rather than creating a new measurement model as proposed, the ASU relies on existing guidance for subsequent measurement, depending on whether the instrument is classified as equity or a liability. The changes will provide the greatest relief in accounting for freestanding warrants with a down-round feature; the earnings effect will be eliminated and an earnings per share (EPS) adjustment would be made instead. A small number of instruments with down-round features will continue to be classified as a liability; bifurcation would no longer be required, and accounting would be governed by existing, complicated guidance on beneficial conversion features (BCF). The second part of this ASU relates to mandatory redeemable interests. The changes eliminate an indefinite deferral and replace it with a permanent scope exception, simplifying navigation of the guidance. There are no accounting effects as a result of this change. The ASU is effective for the Company on January 1, 2019. Early adoption is permitted, including adoption in any interim period and applied retrospectively. The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial position, results of operation or cash flows. In May 2017, the FASB issued ASU 2017-09 “Compensation – Stock Compensation (Topic 718), Scope of Modification Accounting,” to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: 1. The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. 2. The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. 3. The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The ASU is effective for the Company on January 1, 2018. Early adoption is permitted, including adoption in any interim period, for (a) public business entities for reporting periods for which financial statements have not yet been issued and (b) all other entities for reporting periods for which financial statements have not yet been made available for issuance. 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 February 2017, the FASB issued ASU 2017-05 “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets,” which defines the term in substance nonfinancial assets as financial assets promised to a counterparty in a contract if substantially all of the fair value of the assets promised to the counterparty is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. The amendments in this Update exclude all business and nonprofit activities from the scope of Subtopic 610-20. The amendments in the Update may be applied either retrospectively to each period presented in the financial statements or retrospectively with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The ASU is effective for the Company on January 1, 2020. Early adoption is permitted. 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 January 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805), Clarifying the Definition of a Business,” which provides a more robust framework to use in determining when a set of assets and activities is a business. The framework assists entities in evaluating whether both an input and a substantive process are present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for the Company on January 1, 2018. Early application of the amendments in this Update is allowed under certain circumstances. 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 February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842),” which 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 ASU also addresses other concerns related to the current leases model. The new guidance will be effective for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption will be permitted for all entities. The adoption of the new standard will result in the recording of all leases on the balance sheet. The Company plans to adopt ASU 2016-02 on January 1, 2019. The Company has not determined the remaining effect on its ongoing financial reporting for adoption of this ASU. 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 full retrospective or modified retrospective transition method. The Company is in the process of determining 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 Information Technology (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) 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 will 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 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 is likely to change the amount and timing of revenue and costs for certain revenue streams; accelerate revenue for certain license arrangements; extend the amortization of certain costs such as commissions, incentive payments, and conversion costs; increase areas of judgment and related internal controls requirements, such as whether the Company might avail itself of opportunities to continue recognizing processing revenue as invoiced; change the gross versus net presentation of revenue for certain contract arrangements; and 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 this respect, the Company has completed its review of representative contracts and identification of policy and differences resulting from the adoption of the new revenue standard. The Company continues to implement a new revenue tool solution to facilitate compliance with the standard and expects to have this completed by mid-fourth quarter 2017. Finally, the Company has begun its review of additional remaining contracts, both to help quantify the cumulative impact of the standards at year end, as well as, to evaluate internal controls over financial reporting surrounding the adoption of the standard and periodic reporting and disclosures. The Company is still assessing the materiality of the standard’s adoption, including its impact on disclosures. 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). The company is still assessing the potential impact of this ASU on the gross versus net presentation of certain revenue arrangements. 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 .

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2017
Fair Value Measurement
Fair Value Measurement	Note Refer to Note 3 of the Company’s audited financial statements for the year ended December 31, 2016, which is included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC, for a discussion regarding fair value measurement. Level 1 – Quoted prices for identical assets and liabilities in active markets. Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs for the asset or liability. The Company had no transfers between Level 1, Level 2 or Level 3 assets during the nine months ended September 30, 2017 and 2016. As of September 30, 2017, the Company had recorded goodwill in the amount of $3.3 billion. The Company performed its annual impairment testing of its goodwill balance as of May 31, 2017, and this test did not indicate any impairment. The fair value of the reporting units substantially exceeds their carrying value.

Supplementary Balance Sheet Inf

Supplementary Balance Sheet Information	9 Months Ended
	Sep. 30, 2017
Supplementary Balance Sheet Information
Supplementary Balance Sheet Information	Note Cash and Cash Equivalents The Company maintains accounts outside the United States denominated in currencies other than the U.S. dollar. All amounts in domestic accounts are denominated in U.S. dollars. Cash and cash equivalent balances are summarized as follows: (in thousands) September 30, 2017 December 31, 2016 Cash and cash equivalents in domestic accounts $ 353,440 375,122 Cash and cash equivalents in foreign accounts 60,182 50,232 Total $ 413,622 425,354 Prepaid Expenses and Other Current Assets Significant components of prepaid expenses and other current assets are summarized as follows: (in thousands) September 30, 2017 December 31, 2016 Prepaid expenses $ 69,708 84,173 R&D state tax credit 22,642 - Supplies inventory 13,174 17,105 Income taxes receivable 1,595 - Other 68,930 63,210 Total $ 176,049 164,488 Contract Acquisition Costs, Net Significant components of contract acquisition costs, net of accumulated amortization, are summarized as follows: (in thousands) September 30, 2017 December 31, 2016 Conversion costs, net of accumulated amortization of $173.7 million and $164.4 million as of 2017 and 2016, respectively $ 140,614 144,173 Payments for processing rights, net of accumulated amortization of $164.2 million and $145.3 million as of 2017 and 2016, respectively 83,033 91,527 Total $ 223,647 235,700 Amortization expense related to contract acquisition costs is as follows: Three months ended Nine months ended September 30, September 30, (in thousands) 2017 2016 2017 2016 Amortization expense related to: Conversion costs $ 7,266 6,872 22,596 21,311 Payments for processing rights 5,076 4,927 15,405 14,871 Other Current Liabilities Significant components of other current liabilities are summarized as follows: (in thousands) September 30, 2017 December 31, 2016 Deferred revenues $ 55,052 40,473 Accrued expenses 33,553 32,861 Accrued third-party commissions 30,090 28,310 Dividends payable 25,118 19,513 Litigation settlements 14,333 20,795 Accrued interest 11,286 19,029 Income taxes payable 2,798 1,673 Other 122,069 100,605 Total $ 294,299 263,259 Accumulated Other Comprehensive Loss (AOCL) The income tax effects allocated to and the cumulative balance of accumulated other comprehensive income (loss) attributable to TSYS shareholders are as follows: (a) (b) (c) (d) (a+d) (in thousands) Beginning Pretax Amount Tax Effect Net-of-Tax Ending Balance September 30, 2017 Foreign currency translation adjustments and transfers from noncontrolling interests $ (65,482) $ 23,250 2,739 $ 20,511 $ (44,971) Unrealized gain (loss) on available-for-sale securities 9,862 (4,900) (1,734) (3,166) 6,696 Change in AOCI related to postretirement healthcare plans (538) (695) (250) (445) (983) Total $ (56,158) $ 17,655 755 $ 16,900 $ (39,258) There were no reclassifications of AOCI to net income or to other accounts for the nine months ended September 30, 2017.

Long-Term Borrowings, Capital L

Long-Term Borrowings, Capital Lease Obligations and License Agreements	9 Months Ended
	Sep. 30, 2017
Long-Term Borrowings, Capital Lease Obligations and License Agreements
Long-Term Borrowings, Capital Lease Obligations and License Agreements	Note 4 — Long-Term Borrowings, Capital Lease Obligations and License Agreements Refer to Note 12 of the Company’s audited financial statements for the year ended December 31, 2016, which is included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC, for a discussion regarding long-term borrowings and capital lease obligations and license agreements. During the nine months ended September 30, 2017, the Company repaid $415.8 million on outstanding debt, capital lease obligations and license agreements. In addition, $550.0 million of Senior Notes due June 1, 2018 became short term in June 2017.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2017
Share-Based Compensation
Share-Based Compensation	Note 5 — Share-Based Compensation Refer to Notes 1 and 18 of the Company’s audited financial statements for the year ended December 31, 2016, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC, for a discussion regarding the Company’s share-based compensation plans and policy. 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. Below is a summary of share-based compensation expense for the three and nine months ended September 30, 2017 and 2016: Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 Percent Change 2017 2016 Percent Change Share-based compensation $ 8,407 13,069 (35.7) % $ 28,462 33,792 (15.8) % Nonvested Share Awards - Time-Based The Company granted shares of TSYS common stock to certain key employees. The nonvested stock bonus awards are typically for services to be provided in the future and vest over a period of up to four years. The market value of the TSYS common stock as of the date of issuance is charged as compensation expense over the vesting periods of the awards. As of September 30, 2017, there was approximately $19.7 million of unrecognized compensation cost related to time-based nonvested share awards. Nine months ended September 30, 2017 2016 Number of shares granted 323,497 331,733 Market value ( in millions ) $ 17.7 15.3 Performance- and Market-Based Awards The Company granted performance- and market-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 the first nine months of 2017 and 2016, the Compensation Committee established performance goals based on adjusted diluted EPS, adjusted EPS, revenue growth, corporate accountability operating income (CAOI) growth, net revenue and revenues before reimbursable items. The Company’s market-based awards are based upon the Company’s 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 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. 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 or the vesting period. As of September 30, 2017, there was approximately $19.8 million of unrecognized compensation cost related to TSYS performance-based awards that is expected to be recognized through December 2019. As of September 30, 2017, there was approximately $2.7 million of unrecognized compensation cost related to TSYS market-based awards that is expected to be recognized through December 2019. The following table summarizes the performance-based awards granted during the first nine months of 2017 and 2016: Year Performance Performance Number of Period Expensed 2017 December 2019 Adjusted Diluted EPS 1 December 2019 2017 December 2017 Net Revenue and Adjusted Diluted EPS 1 December 2019 2016 December 2016 Revenues before Reimbursable Items 4 and Adjusted EPS 3 December 2016 2016 December 2017 Adjusted EPS 3 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 Revenue Growth and CAOI Growth 2 December 2018 2016 December 2018 Merchant Segment Net Revenue and Corporate Accountability Operating Income December 2018 2016 December 2018 Adjusted EPS 3 December 2018 2016 December 2016 Revenues before Reimbursable Items 4 and Adjusted EPS 3 December 2018 1 Adjusted Diluted EPS is adjusted earnings divided by weighted average diluted shares outstanding used for diluted EPS calculations. Adjusted earnings is net income excluding the after-tax impact of share-based compensation expenses, amortization of acquisition intangibles, merger and acquisition expenses for completed acquisitions and litigation claims, judgments or settlement expenses and related legal expenses. 2 CAOI is adjusted segment operating income and includes corporate administrative expenses. Adjusted segment operating income is defined in Note 7. 3 Adjusted EPS is adjusted earnings divided by weighted average shares outstanding used for basic EPS. 4 Revenues before Reimbursable Items is total revenue less reimbursable items which 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. The following table summarizes the market-based awards granted during the first nine months of 2017 and 2016: Year Performance Performance Number of Period Expensed 2017 December 2019 TSR December 2019 2016 December 2017 TSR December 2017 2016 December 2018 TSR December 2018 Stock Option Awards The Company granted stock options to certain key executives. The grants will vest over a period of up to three years. The weighted average fair value of the option grants was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions: Nine months ended September 30, 2017 2016 Number of options granted 548,265 687,685 Weighted average exercise price $ 54.90 47.01 Risk-free interest rate 1.78 % 1.24 % Expected volatility 21.71 % 21.53 % Expected term (years) 4.60 4.50 Dividend yield 0.73 % 0.86 % Weighted average fair value $ 10.83 8.50 As of September 30, 2017, there was approximately $4.8 million of unrecognized compensation cost related to TSYS stock options that is expected to be recognized over a remaining weighted average period of 1.7 years.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Taxes
Income Taxes	Note 6 — Income Taxes Refer to Notes 1 and 14 of the Company’s audited financial statements for the year ended December 31, 2016, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC, for a discussion regarding income taxes. TSYS is the parent of an affiliated group that files a consolidated U.S. federal income tax return and most state and foreign income tax returns on a separate entity basis. In the normal course of business, the Company is subject to examinations by these taxing authorities unless statutory examination periods lapse. TSYS is no longer subject to U.S. federal income tax examinations for years before 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 2010. 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. TSYS’ effective tax rate was 32.0% and 35.4% for the three months ended September 30, 2017 and 2016, respectively. TSYS’ effective tax rate was 32.7% and 35.5% for the nine months ended September 30, 2017 and 2016, respectively. The primary differences in the 2017 effective income tax rates compared to the 2016 effective income tax rates reflect changes from the favorable discrete items related to the adoption of new accounting guidance regarding the treatment of excess tax benefits from share-based compensation. 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. The amount of unrecognized tax benefits were $17.4 million and $16.5 million as of September 30, 2017 and December 31, 2016, respectively, which resulted in an increase of $0.9 million during the period. 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 $1.6 million and $1.8 million as of September 30, 2017 and December 31, 2016, respectively. The total amounts of unrecognized income tax benefits as of September 30, 2017 and December 31, 2016, that, if recognized, would affect the effective tax rates are $17.7 million and $17.0 million (net of the federal benefit on state tax issues), respectively, which include interest and penalties of $1.0 million and $1.2 million, respectively. TSYS does not expect any significant changes to its calculation of uncertain tax positions during the next twelve months.

Segment Reporting and Major Cus

Segment Reporting and Major Customers	9 Months Ended
	Sep. 30, 2017
Segment Reporting, including Geographic Area Data and Major Customers
Segment Reporting, including Geographic Area Data and Major Customers	Note 7 — Segment Reporting and Major Customers Refer to Note 21 of the Company’s audited financial statements for the year ended December 31, 2016, which is included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC, for a discussion regarding segment reporting and major customers. At TSYS, the chief operating decision maker (CODM) is a group consisting of Senior Executive Management and above. In the first quarter of 2017, the CODM combined the North America Services and International Services segments for purposes of segment reporting into the new Issuer Solutions segment, since they provide similar services to similar customers and to reflect the manner in which decisions on allocation of resources are made. All prior periods were restated to reflect this change. This change is used to evaluate performance and assess resources starting in the first quarter of 2017. The information utilized by the CODM consists of the financial statements and the main metrics monitored are revenue growth and growth in profitability. The following table presents the Company’s total assets by segment: As of (in thousands) September 30, 2017 December 31, 2016 Issuer Solutions $ 5,830,046 5,892,410 Merchant Solutions 3,190,378 3,295,509 Netspend 1,438,916 1,474,595 Intersegment assets (4,240,450) (4,296,337) Total assets $ 6,218,890 6,366,177 The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas: As of (in thousands) September 30, 2017 December 31, 2016 United States $ 231,264 236,913 Europe 43,935 38,866 Other 7,291 6,566 Total $ 282,490 282,345 The following table presents the Company’s depreciation and amortization by segment: Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Depreciation and amortization by segment: Issuer Solutions $ 36,699 34,590 109,287 105,858 Merchant Solutions 7,588 6,846 21,990 18,702 Netspend 3,785 3,241 12,057 9,466 Depreciation and amortization 48,072 44,677 143,334 134,026 Acquisition intangible amortization 50,856 53,341 156,966 134,748 Corporate Administration and Other 1,356 898 3,521 2,694 Total depreciation and amortization $ 100,284 98,916 303,821 271,468 The following tables reconcile geographic revenues to external revenues by operating segment based on the domicile of the Company’s customers: Three months ended September 30, 2017 (in thousands) Issuer Merchant Netspend Total United States $ 261,878 625,148 179,488 $ Europe 1 80,492 49 - 80,541 Canada 1 79,098 381 - 79,479 Other 1 20,762 280 - 21,042 Total $ 442,230 625,858 179,488 $ Nine months ended September 30, 2017 (in thousands) Issuer Merchant Netspend Total United States $ 780,728 1,795,919 559,183 $ Europe 1 237,039 187 - 237,226 Canada 1 234,055 1,004 - 235,059 Other 1 45,656 905 - 46,561 Total $ 1,297,478 1,798,015 559,183 $ Three months ended September 30, 2016 (in thousands) Issuer Merchant Netspend Total United States $ 570,796 154,750 $ Europe 1 74,827 57 - 74,884 Canada 1 65,839 185 - 66,024 Other 1 16,190 182 - 16,372 Total $ 571,220 154,750 $ Nine months ended September 30, 2016 (in thousands) Issuer Merchant Netspend Total United States $ 1,275,474 500,889 $ Europe 1 225,677 164 - 225,841 Canada 1 208,762 507 - 209,269 Other 1 49,121 588 - 49,709 Total $ 1,276,733 500,889 $ 1 Certain of these revenues are impacted by movements in foreign currency exchange rates. The following table presents the Company’s operating results by segment: Operating Segments Three months ended Nine months ended September 30, September 30, (in thousands) 2017 2016 2017 2016 Adjusted operating income by segment 1 : Issuer Solutions (a) $ 147,758 128,949 428,909 392,519 Merchant Solutions (b) 103,275 90,784 296,551 219,056 Netspend (c) 48,560 40,856 143,251 125,538 Corporate Administration and Other (39,560) (37,022) (111,170) (99,830) Adjusted segment operating income (d) 260,033 223,567 757,541 637,283 Less: Share-based compensation 8,407 13,069 28,462 33,792 TransFirst M&A and integration expenses 2 1,052 1,830 10,086 25,908 Litigation, claims, judgments or settlements 26 - 1,904 - Acquisition intangible amortization 50,856 53,341 156,966 134,748 Operating income 199,692 155,327 560,123 442,835 Nonoperating expenses, net (28,835) (30,368) (88,780) (82,225) Income before income taxes and equity in income of equity investments $ 170,857 124,959 471,343 360,610 Net revenue by segment: Issuer Solutions (e) $ 401,074 379,145 1,181,090 1,135,016 Merchant Solutions (f) 281,819 262,494 820,968 644,573 Netspend (g) 179,918 155,349 560,448 502,961 Segment net revenue 862,811 796,988 2,562,506 2,282,550 Less: Intersegment revenues 10,052 7,400 32,787 26,381 Net revenue 3 (h) 852,759 789,588 2,529,719 2,256,169 Add: reimbursable items, interchange and assessments expenses 394,817 357,300 1,124,957 781,684 Total revenues $ 1,247,576 1,146,888 3,654,676 3,037,853 Adjusted segment operating margin on segment net revenue: Issuer Solutions (a)/(e) Merchant Solutions (b)/(f) Netspend (c)/(g) Adjusted segment operating margin on net revenue: (d)/(h) 1 Adjusted segment operating income excludes acquisition intangible amortization, TransFirst M&A and integration expenses, share-based compensation and expenses associated with Corporate Administration and Other. 2 Excludes share-based compensation 3 Net revenue is defined as 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 . Major Customers For the three and nine months ended September 30, 2017 and 2016, the Company did not have any major customers.

Supplementary Cash Flow Informa

Supplementary Cash Flow Information	9 Months Ended
	Sep. 30, 2017
Supplementary Cash Flow Information
Supplementary Cash Flow Information	Note 8 — Supplementary Cash Flow Information Nonvested Awards The Company issued shares of common stock to certain key employees during the first nine months of 2017 and 2016, respectively. The grants were issued under nonvested stock bonus awards for services to be provided in the future. Refer to Note 5 for more information. Equipment Acquired Under Capital Lease Obligations and Software Acquired Under License Agreements There was approximately $3.7 million of equipment acquired under capital lease obligations and $7.4 million of software acquired under license agreements in the first nine months of 2017. During the first nine months of 2016, the Company acquired approximately $1.6 million of equipment under capital lease obligations.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	Note 9 — Commitments and Contingencies Refer to Note 15 of the Company’s audited financial statements for the year ended December 31, 2016, which is included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC, for a discussion regarding commitments and contingencies. Legal Proceedings 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. 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. Despite that stay of discovery, the lead plaintiffs have subpoenaed documents previously produced by ProPay pursuant to the Federal Rules of Bankruptcy Procedure to the court-appointed trustee in the TelexFree bankruptcy proceeding. ProPay has filed a motion to quash that subpoena. ProPay’s motion remains pending before the Court. ProPay’s motion to dismiss also remains pending. On April 4, 2017, lead plaintiffs moved the court for leave to further amend the Second Amended Complaint, and submitted a proposed amendment with their motion. The proposed amendment seeks to add new defendants to the case but does not make any new or additional allegations against ProPay. ProPay, along with certain other defendants in the litigation, have not opposed the lead plaintiffs’ motion to further amend the Second Amended Complaint so long as the amendment, if allowed by the court, would not delay the court’s decision on the pending motions to dismiss. Lead plaintiffs’ motion for leave to amend is pending before the court. 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.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share
Earnings Per Share	Note 10 – Earnings Per Share The following tables illustrate basic and diluted EPS for the three and nine months ended September 30, 2017 and 2016: Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 (in thousands, except per share data) Common Common Common Common Basic EPS: Net income attributable to TSYS common shareholders $ 123,095 85,352 343,977 245,688 Less income allocated to nonvested awards (231) (391) (871) (1,240) Net income allocated to common stock for EPS calculation (a) $ 122,864 84,961 343,106 244,448 Average common shares outstanding (b) 183,917 182,971 183,633 182,656 Basic EPS (a)/(b) $ 0.67 0.46 1.87 1.34 Diluted EPS: Net income attributable to TSYS common shareholders $ 123,095 85,352 343,977 245,688 Less income allocated to nonvested awards (231) (389) (871) (1,236) Add income allocated to nonvested awards 1 231 - 871 - Net income allocated to common stock for EPS calculation (c) $ 123,095 84,963 343,977 244,452 Average common shares outstanding 183,917 182,971 183,633 182,656 Increase due to assumed issuance of shares related to common equivalent shares outstanding 1,192 811 1,123 829 Average nonvested awards 1 699 - 717 - Average common and common equivalent shares outstanding (d) 185,808 183,782 185,473 183,485 Diluted EPS (c)/(d) $ 0.66 0.46 1.85 1.33 1 Under GAAP, entities that have participating securities must compute basic EPS using the two-class method and compute diluted EPS using the more dilutive approach of either the two-class method or the treasury stock method. In 2017, the Company used the two-class method for diluted EPS. In 2016, the Company used the treasury stock method for diluted EPS . Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 (in thousands, except per share data) Participating Securities Participating Securities Participating Securities Participating Securities Basic EPS: Net income allocated to nonvested awards (a) $ 231 391 $ 871 1,240 Nonvested awards (b) 354 860 475 945 Basic EPS (a)/(b) $ 0.65 0.45 $ 1.83 1.31 Diluted EPS: Net income allocated to nonvested awards (c) $ 229 389 $ 867 1,236 Average common and common equivalent shares outstanding (d) 354 860 475 945 Diluted EPS (c)/(d) $ 0.65 0.45 $ 1.83 1.31 1 Under GAAP, entities that have participating securities must compute basic EPS using the two-class method and compute diluted EPS using the more dilutive approach of either the two-class method or the treasury stock method. In 2017, the Company used the two-class method for diluted EPS. In 2016, the Company used the treasury stock method for diluted EPS . The diluted EPS calculation excludes stock options and nonvested awards that are exercisable into 0.1 million and 0.5 million common shares for the three and nine months ended September 30, 2017, respectively, and excludes 0.4 million and 0.5 million common shares for the three and nine months ended September 30, 2016, respectively, because their inclusion would have been anti-dilutive.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2017
Acquisitions
Acquisitions	Note 11 — Acquisitions Refer to Note 24 of the Company’s audited financial statements for the year ended December 31, 2016, which is included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC, for a discussion regarding acquisitions. TransFirst On April 1, 2016, the Company acquired all of the outstanding capital stock of TransFirst and recognized amounts for the identifiable assets acquired and liabilities assumed. The measurement period during which changes in assets, liabilities, equity interests, or items of consideration are subject to adjustment ends one year following the acquisition date. The Company decreased goodwill related to TransFirst during the nine months ended September 30, 2017 by approximately $618,000 resulting from adjustments to deferred income tax assets partially offset by the write-off of a note receivable on the opening balance sheet of TransFirst. Redeemable Noncontrolling Interest In February 2017, the Company acquired an additional 10% equity interest in Central Payment Co., LLC (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. The transaction resulted in a decrease to noncontrolling interest of $9.8 million and a decrease to additional paid-in capital of $60.2 million.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events
Subsequent Events	Note 12 — Subsequent Events Management performed an evaluation of the Company’s activity as of the date these consolidated financial statements were issued and has concluded that there are no significant subsequent events requiring disclosure.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements of TSYS include the accounts of TSYS and its wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and, therefore, do not include all information and footnotes required by U.S. GAAP for complete financial statements. The preparation of the consolidated financial statements requires management of the Company to make estimates and assumptions relating to the reported amounts of assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates and assumptions are developed based upon all information available. Actual results could differ from estimated amounts. All adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair presentation of financial position and results of operations for the periods covered by this report, have been included. Certain prior period amounts have been reclassified to conform to the current period’s presentation, which includes the following changes: The Company had investments in private equity funds as of December 31, 2016 with a value of $24.5 million. During the nine months ended September 30, 2017 and in prior periods, this investment was reclassified from other assets to equity investments on the balance sheets. The income statement impact was to reclassify an immaterial amount of gains and losses from nonoperating expenses to equity in income of equity investments. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s summary of significant accounting policies, consolidated financial statements and related notes appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission (SEC). Results of interim periods are not necessarily indicative of results to be expected for the year.
Recently Adopted, New and Recent Revenue Recognition Accounting Pronouncements	Recently Adopted Accounting Pronouncements The Company adopted the following Accounting Standards Updates (ASUs) on January 1, 2017: 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 adoption of this standard results in the 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 recorded excess tax benefits of $11.1 million in its provision for income taxes rather than as an increase to additional paid-in capital for the nine months ended September 30, 2017 on a prospective basis. Therefore, the prior period presented has not been adjusted. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share using the treasury stock method, which did not have a material impact on its diluted earnings per share for the three and nine months ended September 30, 2017. The Company elected to apply the presentation requirement for cash flows related to excess tax benefits prospectively, and thus, the prior period presented has not been adjusted. This adoption resulted in an increase in net cash provided by operating activities and a decrease in net cash from financing activities of $11.1 million for the nine months ended September 30, 2017. ASU 2016-19 “ Technical Corrections,” which required 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 were 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 was 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 and was adopted on a prospective basis. The adoption of this ASU resulted in the Company's recording of acquired software of $10.7 million as an intangible asset at present value rather than treating the software as a lease arrangement. During the three and nine months ended September 30, 2017, $1.5 million and $2.7 million of expense, respectively, was classified as amortization expense instead of rental expense. ASU 2017- 04 “Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment,” which modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. An entity should apply the amendments in this Update on a prospective basis. The ASU is effective for the Company on January 1, 2020. Early adoption is permitted by all entities for interim or annual goodwill impairment test performed on testing dates after January 1, 2017. The Company early adopted this ASU in May 2017 in conjunction with its annual goodwill impairment testing. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows. New Accounting Pronouncements In September 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-13 “Revenue Recognition (Topic 605), Revenues from Customers (Topic 606), Leases (Topic 840) and Leases (Topic 842)”, which made amendments to SEC paragraphs pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and recession of prior SEC Staff Announcements and Observer comments. This guidance, which is effective immediately, generally relates to the adoption of ASC 606 and 842. 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 July 2017, the FASB issued ASU 2017-11 “Earnings per share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815)” . Under this ASU, a financial instrument with a down-round feature would no longer be classified as a liability solely because that feature exists. Rather than creating a new measurement model as proposed, the ASU relies on existing guidance for subsequent measurement, depending on whether the instrument is classified as equity or a liability. The changes will provide the greatest relief in accounting for freestanding warrants with a down-round feature; the earnings effect will be eliminated and an earnings per share (EPS) adjustment would be made instead. A small number of instruments with down-round features will continue to be classified as a liability; bifurcation would no longer be required, and accounting would be governed by existing, complicated guidance on beneficial conversion features (BCF). The second part of this ASU relates to mandatory redeemable interests. The changes eliminate an indefinite deferral and replace it with a permanent scope exception, simplifying navigation of the guidance. There are no accounting effects as a result of this change. The ASU is effective for the Company on January 1, 2019. Early adoption is permitted, including adoption in any interim period and applied retrospectively. The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial position, results of operation or cash flows. In May 2017, the FASB issued ASU 2017-09 “Compensation – Stock Compensation (Topic 718), Scope of Modification Accounting,” to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: 1. The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. 2. The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. 3. The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The ASU is effective for the Company on January 1, 2018. Early adoption is permitted, including adoption in any interim period, for (a) public business entities for reporting periods for which financial statements have not yet been issued and (b) all other entities for reporting periods for which financial statements have not yet been made available for issuance. 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 February 2017, the FASB issued ASU 2017-05 “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets,” which defines the term in substance nonfinancial assets as financial assets promised to a counterparty in a contract if substantially all of the fair value of the assets promised to the counterparty is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. The amendments in this Update exclude all business and nonprofit activities from the scope of Subtopic 610-20. The amendments in the Update may be applied either retrospectively to each period presented in the financial statements or retrospectively with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The ASU is effective for the Company on January 1, 2020. Early adoption is permitted. 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 January 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805), Clarifying the Definition of a Business,” which provides a more robust framework to use in determining when a set of assets and activities is a business. The framework assists entities in evaluating whether both an input and a substantive process are present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for the Company on January 1, 2018. Early application of the amendments in this Update is allowed under certain circumstances. 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 February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842),” which 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 ASU also addresses other concerns related to the current leases model. The new guidance will be effective for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption will be permitted for all entities. The adoption of the new standard will result in the recording of all leases on the balance sheet. The Company plans to adopt ASU 2016-02 on January 1, 2019. The Company has not determined the remaining effect on its ongoing financial reporting for adoption of this ASU. 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 full retrospective or modified retrospective transition method. The Company is in the process of determining 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 Information Technology (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) 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 will 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 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 is likely to change the amount and timing of revenue and costs for certain revenue streams; accelerate revenue for certain license arrangements; extend the amortization of certain costs such as commissions, incentive payments, and conversion costs; increase areas of judgment and related internal controls requirements, such as whether the Company might avail itself of opportunities to continue recognizing processing revenue as invoiced; change the gross versus net presentation of revenue for certain contract arrangements; and 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 this respect, the Company has completed its review of representative contracts and identification of policy and differences resulting from the adoption of the new revenue standard. The Company continues to implement a new revenue tool solution to facilitate compliance with the standard and expects to have this completed by mid-fourth quarter 2017. Finally, the Company has begun its review of additional remaining contracts, both to help quantify the cumulative impact of the standards at year end, as well as, to evaluate internal controls over financial reporting surrounding the adoption of the standard and periodic reporting and disclosures. The Company is still assessing the materiality of the standard’s adoption, including its impact on disclosures. 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). The company is still assessing the potential impact of this ASU on the gross versus net presentation of certain revenue arrangements. 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 .

Supplementary Balance Sheet I20

Supplementary Balance Sheet Information (Tables)	9 Months Ended
	Sep. 30, 2017
Supplementary Balance Sheet Information
Cash and Cash Equivalent Balances	(in thousands) September 30, 2017 December 31, 2016 Cash and cash equivalents in domestic accounts $ 353,440 375,122 Cash and cash equivalents in foreign accounts 60,182 50,232 Total $ 413,622 425,354
Significant Components of Prepaid Expenses and Other Current Assets	(in thousands) September 30, 2017 December 31, 2016 Prepaid expenses $ 69,708 84,173 R&D state tax credit 22,642 - Supplies inventory 13,174 17,105 Income taxes receivable 1,595 - Other 68,930 63,210 Total $ 176,049 164,488
Significant Components of Other Current Liabilities	(in thousands) September 30, 2017 December 31, 2016 Deferred revenues $ 55,052 40,473 Accrued expenses 33,553 32,861 Accrued third-party commissions 30,090 28,310 Dividends payable 25,118 19,513 Litigation settlements 14,333 20,795 Accrued interest 11,286 19,029 Income taxes payable 2,798 1,673 Other 122,069 100,605 Total $ 294,299 263,259
Income Tax Effects Allocated to and Cumulative Balance of Accumulated Other Comprehensive Income (Loss)	(a) (b) (c) (d) (a+d) (in thousands) Beginning Pretax Amount Tax Effect Net-of-Tax Ending Balance September 30, 2017 Foreign currency translation adjustments and transfers from noncontrolling interests $ (65,482) $ 23,250 2,739 $ 20,511 $ (44,971) Unrealized gain (loss) on available-for-sale securities 9,862 (4,900) (1,734) (3,166) 6,696 Change in AOCI related to postretirement healthcare plans (538) (695) (250) (445) (983) Total $ (56,158) $ 17,655 755 $ 16,900 $ (39,258)
Contract Acquisition Costs
Supplementary Balance Sheet Information
Significant Components of Contract Acquisition Costs, Net of Accumulated Amortization	(in thousands) September 30, 2017 December 31, 2016 Conversion costs, net of accumulated amortization of $173.7 million and $164.4 million as of 2017 and 2016, respectively $ 140,614 144,173 Payments for processing rights, net of accumulated amortization of $164.2 million and $145.3 million as of 2017 and 2016, respectively 83,033 91,527 Total $ 223,647 235,700
Amortization expense related to contract acquisition costs	Three months ended Nine months ended September 30, September 30, (in thousands) 2017 2016 2017 2016 Amortization expense related to: Conversion costs $ 7,266 6,872 22,596 21,311 Payments for processing rights 5,076 4,927 15,405 14,871

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Share-Based Compensation
Summary of share-based compensation expense	Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 Percent Change 2017 2016 Percent Change Share-based compensation $ 8,407 13,069 (35.7) % $ 28,462 33,792 (15.8) %
Summary of Time-Based Nonvested Share Awards Granted	Nine months ended September 30, 2017 2016 Number of shares granted 323,497 331,733 Market value ( in millions ) $ 17.7 15.3
Summary of Performance-Based Awards Granted	Year Performance Performance Number of Period Expensed 2017 December 2019 Adjusted Diluted EPS 1 December 2019 2017 December 2017 Net Revenue and Adjusted Diluted EPS 1 December 2019 2016 December 2016 Revenues before Reimbursable Items 4 and Adjusted EPS 3 December 2016 2016 December 2017 Adjusted EPS 3 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 Revenue Growth and CAOI Growth 2 December 2018 2016 December 2018 Merchant Segment Net Revenue and Corporate Accountability Operating Income December 2018 2016 December 2018 Adjusted EPS 3 December 2018 2016 December 2016 Revenues before Reimbursable Items 4 and Adjusted EPS 3 December 2018 1 Adjusted Diluted EPS is adjusted earnings divided by weighted average diluted shares outstanding used for diluted EPS calculations. Adjusted earnings is net income excluding the after-tax impact of share-based compensation expenses, amortization of acquisition intangibles, merger and acquisition expenses for completed acquisitions and litigation claims, judgments or settlement expenses and related legal expenses. 2 CAOI is adjusted segment operating income and includes corporate administrative expenses. Adjusted segment operating income is defined in Note 7. 3 Adjusted EPS is adjusted earnings divided by weighted average shares outstanding used for basic EPS. 4 Revenues before Reimbursable Items is total revenue less reimbursable items which 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.
Summary of Market-Based Awards Granted	The following table summarizes the market-based awards granted during the first nine months of 2017 and 2016: Year Performance Performance Number of Period Expensed 2017 December 2019 TSR December 2019 2016 December 2017 TSR December 2017 2016 December 2018 TSR December 2018
Summary of Weighted Average Assumptions and Fair Value of Options	Nine months ended September 30, 2017 2016 Number of options granted 548,265 687,685 Weighted average exercise price $ 54.90 47.01 Risk-free interest rate 1.78 % 1.24 % Expected volatility 21.71 % 21.53 % Expected term (years) 4.60 4.50 Dividend yield 0.73 % 0.86 % Weighted average fair value $ 10.83 8.50

Segment Reporting and Major C22

Segment Reporting and Major Customers (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting, including Geographic Area Data and Major Customers
Total Assets by Segment	As of (in thousands) September 30, 2017 December 31, 2016 Issuer Solutions $ 5,830,046 5,892,410 Merchant Solutions 3,190,378 3,295,509 Netspend 1,438,916 1,474,595 Intersegment assets (4,240,450) (4,296,337) Total assets $ 6,218,890 6,366,177
Property and Equipment, Net of Accumulated Depreciation and Amortization by Geographic Areas	As of (in thousands) September 30, 2017 December 31, 2016 United States $ 231,264 236,913 Europe 43,935 38,866 Other 7,291 6,566 Total $ 282,490 282,345
Depreciation and Amortization by segment	Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Depreciation and amortization by segment: Issuer Solutions $ 36,699 34,590 109,287 105,858 Merchant Solutions 7,588 6,846 21,990 18,702 Netspend 3,785 3,241 12,057 9,466 Depreciation and amortization 48,072 44,677 143,334 134,026 Acquisition intangible amortization 50,856 53,341 156,966 134,748 Corporate Administration and Other 1,356 898 3,521 2,694 Total depreciation and amortization $ 100,284 98,916 303,821 271,468
Reconciliation of Geographic Revenues to External Revenues by Operating Segments	Three months ended September 30, 2017 (in thousands) Issuer Merchant Netspend Total United States $ 261,878 625,148 179,488 $ Europe 1 80,492 49 - 80,541 Canada 1 79,098 381 - 79,479 Other 1 20,762 280 - 21,042 Total $ 442,230 625,858 179,488 $ Nine months ended September 30, 2017 (in thousands) Issuer Merchant Netspend Total United States $ 780,728 1,795,919 559,183 $ Europe 1 237,039 187 - 237,226 Canada 1 234,055 1,004 - 235,059 Other 1 45,656 905 - 46,561 Total $ 1,297,478 1,798,015 559,183 $ Three months ended September 30, 2016 (in thousands) Issuer Merchant Netspend Total United States $ 570,796 154,750 $ Europe 1 74,827 57 - 74,884 Canada 1 65,839 185 - 66,024 Other 1 16,190 182 - 16,372 Total $ 571,220 154,750 $ Nine months ended September 30, 2016 (in thousands) Issuer Merchant Netspend Total United States $ 1,275,474 500,889 $ Europe 1 225,677 164 - 225,841 Canada 1 208,762 507 - 209,269 Other 1 49,121 588 - 49,709 Total $ 1,276,733 500,889 $ 1 Certain of these revenues are impacted by movements in foreign currency exchange rates.
Operating Segments	Operating Segments Three months ended Nine months ended September 30, September 30, (in thousands) 2017 2016 2017 2016 Adjusted operating income by segment 1 : Issuer Solutions (a) $ 147,758 128,949 428,909 392,519 Merchant Solutions (b) 103,275 90,784 296,551 219,056 Netspend (c) 48,560 40,856 143,251 125,538 Corporate Administration and Other (39,560) (37,022) (111,170) (99,830) Adjusted segment operating income (d) 260,033 223,567 757,541 637,283 Less: Share-based compensation 8,407 13,069 28,462 33,792 TransFirst M&A and integration expenses 2 1,052 1,830 10,086 25,908 Litigation, claims, judgments or settlements 26 - 1,904 - Acquisition intangible amortization 50,856 53,341 156,966 134,748 Operating income 199,692 155,327 560,123 442,835 Nonoperating expenses, net (28,835) (30,368) (88,780) (82,225) Income before income taxes and equity in income of equity investments $ 170,857 124,959 471,343 360,610 Net revenue by segment: Issuer Solutions (e) $ 401,074 379,145 1,181,090 1,135,016 Merchant Solutions (f) 281,819 262,494 820,968 644,573 Netspend (g) 179,918 155,349 560,448 502,961 Segment net revenue 862,811 796,988 2,562,506 2,282,550 Less: Intersegment revenues 10,052 7,400 32,787 26,381 Net revenue 3 (h) 852,759 789,588 2,529,719 2,256,169 Add: reimbursable items, interchange and assessments expenses 394,817 357,300 1,124,957 781,684 Total revenues $ 1,247,576 1,146,888 3,654,676 3,037,853 Adjusted segment operating margin on segment net revenue: Issuer Solutions (a)/(e) Merchant Solutions (b)/(f) Netspend (c)/(g) Adjusted segment operating margin on net revenue: (d)/(h) 1 Adjusted segment operating income excludes acquisition intangible amortization, TransFirst M&A and integration expenses, share-based compensation and expenses associated with Corporate Administration and Other. 2 Excludes share-based compensation 3 Net revenue is defined as 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 .

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share
Basic and Diluted Earnings Per Share	Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 (in thousands, except per share data) Common Common Common Common Basic EPS: Net income attributable to TSYS common shareholders $ 123,095 85,352 343,977 245,688 Less income allocated to nonvested awards (231) (391) (871) (1,240) Net income allocated to common stock for EPS calculation (a) $ 122,864 84,961 343,106 244,448 Average common shares outstanding (b) 183,917 182,971 183,633 182,656 Basic EPS (a)/(b) $ 0.67 0.46 1.87 1.34 Diluted EPS: Net income attributable to TSYS common shareholders $ 123,095 85,352 343,977 245,688 Less income allocated to nonvested awards (231) (389) (871) (1,236) Add income allocated to nonvested awards 1 231 - 871 - Net income allocated to common stock for EPS calculation (c) $ 123,095 84,963 343,977 244,452 Average common shares outstanding 183,917 182,971 183,633 182,656 Increase due to assumed issuance of shares related to common equivalent shares outstanding 1,192 811 1,123 829 Average nonvested awards 1 699 - 717 - Average common and common equivalent shares outstanding (d) 185,808 183,782 185,473 183,485 Diluted EPS (c)/(d) $ 0.66 0.46 1.85 1.33 1 Under GAAP, entities that have participating securities must compute basic EPS using the two-class method and compute diluted EPS using the more dilutive approach of either the two-class method or the treasury stock method. In 2017, the Company used the two-class method for diluted EPS. In 2016, the Company used the treasury stock method for diluted EPS . Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 (in thousands, except per share data) Participating Securities Participating Securities Participating Securities Participating Securities Basic EPS: Net income allocated to nonvested awards (a) $ 231 391 $ 871 1,240 Nonvested awards (b) 354 860 475 945 Basic EPS (a)/(b) $ 0.65 0.45 $ 1.83 1.31 Diluted EPS: Net income allocated to nonvested awards (c) $ 229 389 $ 867 1,236 Average common and common equivalent shares outstanding (d) 354 860 475 945 Diluted EPS (c)/(d) $ 0.65 0.45 $ 1.83 1.31 1 Under GAAP, entities that have participating securities must compute basic EPS using the two-class method and compute diluted EPS using the more dilutive approach of either the two-class method or the treasury stock method. In 2017, the Company used the two-class method for diluted EPS. In 2016, the Company used the treasury stock method for diluted EPS .

Summary of Significant Accoun24

Summary of Significant Accounting Policies - Operating Segments (Details)	9 Months Ended
	Sep. 30, 2017segment
Summary of Significant Accounting Policies
Operating segments	3

Summary of Significant Accoun25

Summary of Significant Accounting Policies - Private Equity Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Equity investments
Other assets	$ 116,765	$ 84,016
Equity investments	$ 150,775	133,556
Private Equity Funds
Equity investments
Equity investments		24,500
Reclassification adjustment | Private Equity Funds
Equity investments
Other assets		$ (24,500)

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Adoption of ASU 2016-09 - Improvements to Employee Share-Based Payment Accounting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement
Provision for income taxes	$ (54,628)	$ (44,247)	$ (153,917)	$ (127,966)
Statement of Cash Flows
Net cash provided by operating activities			652,025	551,080
Net cash used in financing activities			558,551	$ (1,969,628)
ASU 2016-09 Improvements to Employee Share-Based Payment Accounting
Income Statement
Provision for income taxes			11,100
Statement of Cash Flows
Net cash provided by operating activities			11,100
Net cash used in financing activities			$ 11,100

Summary of Significant Accoun27

Summary of Significant Accounting Policies - ASU 2016-19 Technical Corrections Related to Intangibles (Details) - ASU 2016-19 Technical Corrections $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017USD ($)
Prospective adoption
Assets from acquired software	$ 10.7	$ 10.7
Amortization expense	$ 1.5	$ 2.7

Fair Value Measurement - Change

Fair Value Measurement - Changes in Fair Value Levels (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Fair Value Measurement
Asset transfers out of Level 1 into Level 2	$ 0	$ 0
Asset transfers out of Level 2 into Level 1	0	0
Asset transfers into (out of) Level 3	$ 0	$ 0

Fair Value Measurement - Goodwi

Fair Value Measurement - Goodwill and Impairment Testing (Details) - USD ($) $ in Thousands	May 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Fair Value Measurement
Goodwill		$ 3,272,792	$ 3,270,952
Impairment of goodwill	$ 0

Supplementary Balance Sheet I30

Supplementary Balance Sheet Information - Cash and Cash Equivalent Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Supplementary Balance Sheet Information
Cash and cash equivalents in domestic accounts	$ 353,440	$ 375,122
Cash and cash equivalents in foreign accounts	60,182	50,232
Cash and cash equivalents	$ 413,622	$ 425,354	$ 446,883	$ 389,328

Supplementary Balance Sheet I31

Supplementary Balance Sheet Information - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Supplementary Balance Sheet Information
Prepaid expenses	$ 69,708	$ 84,173
R&D state tax credit	22,642
Supplies inventory	13,174	17,105
Income taxes receivable	1,595
Other	68,930	63,210
Total	$ 176,049	$ 164,488

Supplementary Balance Sheet I32

Supplementary Balance Sheet Information - Contract Acquisition Costs, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Contract Acquisition Costs, Net
Finite-Lived Intangible Assets, Net	$ 223,647		$ 223,647		$ 235,700
Conversion costs
Contract Acquisition Costs, Net
Finite-Lived Intangible Assets, Net	140,614		140,614		144,173
Accumulated amortization	173,700		173,700		164,400
Amortization expense	7,266	$ 6,872	22,596	$ 21,311
Payments for processing rights
Contract Acquisition Costs, Net
Finite-Lived Intangible Assets, Net	83,033		83,033		91,527
Accumulated amortization	164,200		164,200		$ 145,300
Amortization expense	$ 5,076	$ 4,927	$ 15,405	$ 14,871

Supplementary Balance Sheet I33

Supplementary Balance Sheet Information - Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Supplementary Balance Sheet Information
Deferred revenues	$ 55,052	$ 40,473
Accrued expenses	33,553	32,861
Accrued third-party commissions	30,090	28,310
Dividends payable	25,118	19,513
Litigation settlements	14,333	20,795
Accrued interest	11,286	19,029
Income taxes payable	2,798	1,673
Other	122,069	100,605
Total	$ 294,299	$ 263,259

Supplementary Balance Sheet I34

Supplementary Balance Sheet Information - Accumulated Other Comprehensive Income (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 2,099,920
Ending Balance	2,356,760
Reclassifications of AOCI	0
Foreign currency translation adjustments and transfers from noncontrolling interests
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(65,482)
Pretax Amount	23,250
Tax Effect	2,739
Net-of-Tax Amount	20,511
Ending Balance	(44,971)
Unrealized gain (loss) on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	9,862
Pretax Amount	(4,900)
Tax Effect	(1,734)
Net-of-Tax Amount	(3,166)
Ending Balance	6,696
Change in AOCI related to postretirement healthcare plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(538)
Pretax Amount	(695)
Tax Effect	(250)
Net-of-Tax Amount	(445)
Ending Balance	(983)
Accumulated Other Comprehensive Income (Loss) (OCI)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(56,158)
Pretax Amount	17,655
Tax Effect	755
Net-of-Tax Amount	16,900
Ending Balance	$ (39,258)

Long-Term Borrowings, Capital35

Long-Term Borrowings, Capital Lease Obligations and License Agreements (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Long-Term Borrowings and Capital Lease Obligations
Outstanding debt and capital lease obligations repaid	$ 415,788	$ 618,598
Current portion of long-term borrowings (Note 4)	$ 562,550			$ 48,040
2.375% Senior Notes due June 2018
Long-Term Borrowings and Capital Lease Obligations
Current portion of long-term borrowings (Note 4)			$ 550,000

Share-Based Compensation - Expe

Share-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-Based Compensation
Share-based compensation	$ 8,407	$ 13,069	$ 28,462	$ 33,792
Percent Change	(35.70%)		(15.80%)
Selling, general and administrative expenses
Share-Based Compensation
Share-based compensation	$ 8,407	$ 13,069	$ 28,462	$ 33,792

Share-Based Compensation - Nonv

Share-Based Compensation - Nonvested Share Awards - Time Based (Details) - Nonvested Share Awards - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost (in dollars)	$ 19.7
Granted	323,497	331,733
Market value of stock awarded granted in connection with acquisition	$ 17.7	$ 15.3
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years

Share-Based Compensation - Perf

Share-Based Compensation - Performance- and Market-Based Awards (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Performance and Market Based Awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	200.00%
Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost (in dollars)	$ 19.8
Market Based Share Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost (in dollars)	$ 2.7
Performance Period Ending December 2019 | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	103,297
Performance Period Ending December 2019 | Market Based Share Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	44,275
Performance Period Ending December 2017 | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	146,094	14,940
Performance Period Ending December 2017 | Market Based Share Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		6,403
Performance Period Ending December 2018 | Market Based Share Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		52,404
Performance Period Ending December 2016, Measure One | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		15,605
Performance Period Ending December 2016, Measure Two | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		144,995
Performance Period Ending December 2018, Measure One | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		29,332
Performance Period Ending December 2018, Measure Two | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		67,517
Performance Period Ending December 2018, Measure Three | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		78,220
Performance Period Ending December 2018, Measure Four | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		122,284

Share-Based Compensation - Stoc

Share-Based Compensation - Stock Option Awards (Details) - Stock Options - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted (in shares)	548,265	687,685
Weighted average exercise price (in dollars per share)	$ 54.90	$ 47.01
Risk-free interest rate (as a percent)	1.78%	1.24%
Expected volatility (as a percent)	21.71%	21.53%
Expected term	4 years 7 months 6 days	4 years 6 months
Dividend yield (as a percent)	0.73%	0.86%
Weighted average fair value (in dollars per share)	$ 10.83	$ 8.50
Unrecognized compensation cost (in dollars)	$ 4.8
Unrecognized compensation cost related to non vested share-based compensation arrangements, remaining weighted average recognition period	1 year 8 months 12 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Taxes
Effective tax rate (as a percent)	32.00%	35.40%	32.70%	35.50%
Amount of unrecognized tax benefits	$ 17.4		$ 17.4		$ 16.5
Increase in unrecognized tax benefits			0.9
Gross accrued interest and penalties on unrecognized tax benefits	1.6		1.6		1.8
Unrecognized income tax benefits that, if recognized, would affect the effective tax rates	17.7		17.7		17
Unrecognized income tax benefits that, if recognized, would affect the effective tax rates , interest and penalties	1		1		$ 1.2
Significant changes to uncertain tax positions during the next twelve months	$ 0		$ 0

Segment Reporting and Major C41

Segment Reporting and Major Customers - Total Assets by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting
Total assets	$ 6,218,890	$ 6,366,177
Operating Segments | Issuer Solutions
Segment Reporting
Total assets	5,830,046	5,892,410
Operating Segments | Merchant Solutions
Segment Reporting
Total assets	3,190,378	3,295,509
Operating Segments | Netspend
Segment Reporting
Total assets	1,438,916	1,474,595
Intersegment
Segment Reporting
Total assets	$ (4,240,450)	$ (4,296,337)

Segment Reporting and Major C42

Segment Reporting and Major Customers - Property and Equipment, net (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property and equipment, net, by geographic areas
Property and equipment, net of accumulated depreciation and amortization	$ 282,490	$ 282,345
United States
Property and equipment, net, by geographic areas
Property and equipment, net of accumulated depreciation and amortization	231,264	236,913
Europe
Property and equipment, net, by geographic areas
Property and equipment, net of accumulated depreciation and amortization	43,935	38,866
Other
Property and equipment, net, by geographic areas
Property and equipment, net of accumulated depreciation and amortization	$ 7,291	$ 6,566

Segment Reporting and Major C43

Segment Reporting and Major Customers - Depreciation and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting
Total depreciation and amortization	$ 100,284	$ 98,916	$ 303,821	$ 271,468
Operating Segments
Segment Reporting
Depreciation and amortization	48,072	44,677	143,334	134,026
Operating Segments | Issuer Solutions
Segment Reporting
Depreciation and amortization	36,699	34,590	109,287	105,858
Operating Segments | Merchant Solutions
Segment Reporting
Depreciation and amortization	7,588	6,846	21,990	18,702
Operating Segments | Netspend
Segment Reporting
Depreciation and amortization	3,785	3,241	12,057	9,466
Segment Reconciling Items
Segment Reporting
Acquisition intangible amortization	50,856	53,341	156,966	134,748
Corporate Administration and Other
Segment Reporting
Depreciation and amortization	$ 1,356	$ 898	$ 3,521	$ 2,694

Segment Reporting and Major C44

Segment Reporting and Major Customers - Geographic Revenues to External Revenues (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Geographic revenues to external revenues by operating segment
Total revenues	$ 1,247,576	$ 1,146,888	$ 3,654,676	$ 3,037,853
United States
Geographic revenues to external revenues by operating segment
Total revenues	1,066,514	989,608	3,135,830	2,553,034
Europe
Geographic revenues to external revenues by operating segment
Total revenues	80,541	74,884	237,226	225,841
Canada
Geographic revenues to external revenues by operating segment
Total revenues	79,479	66,024	235,059	209,269
Other
Geographic revenues to external revenues by operating segment
Total revenues	21,042	16,372	46,561	49,709
Issuer Solutions
Geographic revenues to external revenues by operating segment
Total revenues	442,230	420,918	1,297,478	1,260,231
Issuer Solutions | United States
Geographic revenues to external revenues by operating segment
Total revenues	261,878	264,062	780,728	776,671
Issuer Solutions | Europe
Geographic revenues to external revenues by operating segment
Total revenues	80,492	74,827	237,039	225,677
Issuer Solutions | Canada
Geographic revenues to external revenues by operating segment
Total revenues	79,098	65,839	234,055	208,762
Issuer Solutions | Other
Geographic revenues to external revenues by operating segment
Total revenues	20,762	16,190	45,656	49,121
Merchant Solutions
Geographic revenues to external revenues by operating segment
Total revenues	625,858	571,220	1,798,015	1,276,733
Merchant Solutions | United States
Geographic revenues to external revenues by operating segment
Total revenues	625,148	570,796	1,795,919	1,275,474
Merchant Solutions | Europe
Geographic revenues to external revenues by operating segment
Total revenues	49	57	187	164
Merchant Solutions | Canada
Geographic revenues to external revenues by operating segment
Total revenues	381	185	1,004	507
Merchant Solutions | Other
Geographic revenues to external revenues by operating segment
Total revenues	280	182	905	588
Netspend
Geographic revenues to external revenues by operating segment
Total revenues	179,488	154,750	559,183	500,889
Netspend | United States
Geographic revenues to external revenues by operating segment
Total revenues	$ 179,488	$ 154,750	$ 559,183	$ 500,889

Segment Reporting and Major C45

Segment Reporting and Major Customers - Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting
Share-based compensation	$ 8,407	$ 13,069	$ 28,462	$ 33,792
Operating income	199,692	155,327	560,123	442,835
Nonoperating expenses, net	(28,835)	(30,368)	(88,780)	(82,225)
Income before income taxes and equity in income of equity investments	170,857	124,959	471,343	360,610
Net revenue	852,759	789,588	2,529,719	2,256,169
Add: reimbursable items, interchange and assessment expenses	394,817	357,300	1,124,957	781,684
Total revenues	1,247,576	1,146,888	3,654,676	3,037,853
Issuer Solutions
Segment Reporting
Total revenues	442,230	420,918	1,297,478	1,260,231
Merchant Solutions
Segment Reporting
Total revenues	625,858	571,220	1,798,015	1,276,733
Netspend
Segment Reporting
Total revenues	179,488	154,750	559,183	500,889
Operating Segments
Segment Reporting
Adjusted operating income	260,033	223,567	757,541	637,283
Income before income taxes and equity in income of equity investments	170,857	124,959	471,343	360,610
Net revenue	$ 862,811	$ 796,988	$ 2,562,506	$ 2,282,550
Operating margin on net revenue	30.50%	28.30%	29.90%	28.20%
Operating Segments | Issuer Solutions
Segment Reporting
Adjusted operating income	$ 147,758	$ 128,949	$ 428,909	$ 392,519
Net revenue	$ 401,074	$ 379,145	$ 1,181,090	$ 1,135,016
Operating margin on net revenue	36.80%	34.00%	36.30%	34.60%
Operating Segments | Merchant Solutions
Segment Reporting
Adjusted operating income	$ 103,275	$ 90,784	$ 296,551	$ 219,056
Net revenue	$ 281,819	$ 262,494	$ 820,968	$ 644,573
Operating margin on net revenue	36.60%	34.60%	36.10%	34.00%
Operating Segments | Netspend
Segment Reporting
Adjusted operating income	$ 48,560	$ 40,856	$ 143,251	$ 125,538
Net revenue	$ 179,918	$ 155,349	$ 560,448	$ 502,961
Operating margin on net revenue	27.00%	26.30%	25.60%	25.00%
Corporate Administration and Other
Segment Reporting
Adjusted operating income	$ (39,560)	$ (37,022)	$ (111,170)	$ (99,830)
Intersegment
Segment Reporting
Net revenue	(10,052)	(7,400)	(32,787)	(26,381)
Segment Reconciling Items
Segment Reporting
TransFirst M&A and integration expenses	1,052	1,830	10,086	25,908
Litigation, claims, judgements or settlements	26		1,904
Acquisition intangible amortization	$ 50,856	$ 53,341	$ 156,966	$ 134,748

Supplementary Cash Flow Infor46

Supplementary Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Supplemental cash flow information:
Equipment acquired under capital lease obligations	$ 3.7	$ 1.6
Software acquired under license agreements	$ 7.4

Commitments and Contingencies (

Commitments and Contingencies (Detail) - TelexFree Matter	Oct. 21, 2014claim	Sep. 30, 2017defendant
Propay
Commitments and Contingencies
Number of additional claims | claim	4
Minimum
Commitments and Contingencies
Number of defendants | defendant		1

Earnings Per Share - Common Sto

Earnings Per Share - Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Basic EPS:
Net income attributable to TSYS common shareholders	$ 123,095	$ 85,352	$ 343,977	$ 245,688
Less income allocated to nonvested awards	(231)	(391)	(871)	(1,240)
Net income allocated to common stock for EPS calculation	$ 122,864	$ 84,961	$ 343,106	$ 244,448
Average common shares outstanding	183,917	182,971	183,633	182,656
Basic EPS	$ 0.67	$ 0.46	$ 1.87	$ 1.34
Diluted EPS:
Net income attributable to TSYS common shareholders	$ 123,095	$ 85,352	$ 343,977	$ 245,688
Less income allocated to nonvested awards	(231)	(389)	(871)	(1,236)
Add income allocated to nonvested awards	231		871
Net income allocated to common stock for EPS calculation	$ 123,095	$ 84,963	$ 343,977	$ 244,452
Average common shares outstanding	183,917	182,971	183,633	182,656
Increase due to assumed issuance of shares related to common equivalent shares outstanding	1,192	811	1,123	829
Average nonvested awards	699		717
Average common and common equivalent shares outstanding	185,808	183,782	185,473	183,485
Diluted EPS	$ 0.66	$ 0.46	$ 1.85	$ 1.33

Earnings Per Share - Participat

Earnings Per Share - Participating Securities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Basic EPS:
Average common shares outstanding	183,917	182,971	183,633	182,656
Basic EPS	$ 0.67	$ 0.46	$ 1.87	$ 1.34
Diluted EPS:
Average common and common equivalent shares outstanding(d)	185,808	183,782	185,473	183,485
Diluted EPS	$ 0.66	$ 0.46	$ 1.85	$ 1.33
Participating Securities
Basic EPS:
Net income allocated to nonvested awards	$ 231	$ 391	$ 871	$ 1,240
Average common shares outstanding	354	860	475	945
Basic EPS	$ 0.65	$ 0.45	$ 1.83	$ 1.31
Diluted EPS:
Net income allocated to nonvested awards	$ 229	$ 389	$ 867	$ 1,236
Average common and common equivalent shares outstanding(d)	354	860	475	945
Diluted EPS	$ 0.65	$ 0.45	$ 1.83	$ 1.31

Earnings Per Share - Anti-dilut

Earnings Per Share - Anti-dilutive Securities (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share
Anti-dilutive stock options and nonvested awards excluded from diluted EPS calculation	0.1	0.4	0.5	0.5

Acquisitions - TransFirst (Deta

Acquisitions - TransFirst (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
TransFirst
Acquisitions
Decrease to goodwill	$ 618,000

Acquisitions - Redeemable Nonco

Acquisitions - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Feb. 28, 2017	Sep. 30, 2017	Sep. 30, 2016
Redeemable Noncontrolling Interest
Purchase of noncontrolling interest		$ 70,000	$ 5,878
Additional Paid-In Capital
Redeemable Noncontrolling Interest
Decrease from acquisition of noncontrolling interest	$ 60,200
Central Payments Co., LLC
Redeemable Noncontrolling Interest
Noncontrolling equity interest acquired (as a percent)	10.00%
Noncontrolling equity interest (as a percent)	15.00%
Central Payments Co., LLC
Redeemable Noncontrolling Interest
Purchase of noncontrolling interest	$ 70,000
Decrease to noncontrolling interest	$ 9,800