8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

October 17, 2006

Date of Report

(Date of Earliest Event Reported)

Total System Services, Inc.

(Exact Name of Registrant as Specified in its Charter)

Georgia
(State of Incorporation) 1-10254
(Commission File Number) 58-1493818
(IRS Employer Identification No.)

1600 First Avenue, Columbus, Georgia 31901

(Address of principal executive offices) (Zip Code)

(706) 649-2267

(Registrant's telephone number, including area code)

________________________________________________

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02	Results of Operations and Financial Condition.
	On October 17, 2006, Total System Services, Inc. (“Registrant”) issued a press release and will hold an investor call and webcast on October 18, 2006 to disclose financial results for the quarter ended September 30, 2006. The press release and Supplemental Information for use at this investor call are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. This information shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934 except as shall be expressly set forth by specific reference in such filing.
Item 7.01	Regulation FD Disclosure. See Item 2.02 above.
Item 9.01	Financial Statements and Exhibits.
	(d)	Exhibits
	Exhibit No.	Description
	99.1	Registrant's press release dated October 17, 2006
	99.2	Supplemental Information prepared for use with the press release

2

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TOTAL SYSTEM SERVICES, INC. ("Registrant")
Dated: October 17, 2006	By:/s/ Kathleen Moates Kathleen Moates Senior Deputy General Counsel

3

EX-99.1

Exhibit 99.1

PRESS RELEASE

Total System Services, Inc.

1600 First Ave. +1.706.649.2307

P.O. Box 2567 +1.706.649.5740

Columbus GA 31902-2567
www.tsys.com

For immediate release.

Contacts:

James B. Lipham Chief Financial Officer +1.706.649.2262 Shawn Roberts TSYS Investor Relations +1.706.644.6081 shawnroberts@tsys.com

TSYS Reports 13% Increase in Earnings Per Share

for the Third Quarter 2006

Company Increases 2006 and 2007 Earnings Guidance

Columbus, Ga., Oct. 17, 2006— TSYS® today announced that its net income for the third quarter increased 13% over third quarter 2005, and the first nine months of 2006 exceeded the same period in 2005 by 12%. TSYS now expects to achieve 2006 earnings growth in the range of 26–28%, compared to previous guidance of 21–23%.

“The earnings reported through the third quarter of 2006 are impressive considering the challenges we have faced during the year and demonstrates the strong commitment of our team to grow our company through efficient alignment of our people resources to our business needs and the expansion of our global business,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.

(dollars in millions, except earnings per share data)	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2006	2005	Percent Change	2006	2005	Percent Change
Revenues Before Reimbursables	$342.3	342.1	0.1%	$1,014.7	953.5	6.4%
Total Revenues	441.8	422.0	4.7%	1,283.3	1,182.2	8.5%
Operating Income	72.3	72.3	(0.1)%	228.8	215.0	6.4%
Net Income	54.3	48.1	13.0%	162.1	144.8	11.9%
Basic EPS	0.28	0.24	13.4%	0.82	0.73	12.0%
Diluted EPS	0.28	0.24	13.3%	0.82	0.73	12.0%

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2006

Page 2 of 11

Recent Highlights

Domestic

• TSYS recently converted more than 42 million Capital One accounts onto its TS2 platform. In a related transaction, Capital One became the first client on the new TSYS Loyalty Platform, and is currently processing loyalty transactions on this industry-leading platform.

• TSYS also converted approximately 6 million accounts for The Toronto-Dominion Bank, known as TD Bank Financial Group, and is providing a range of processing and support services for its consumer and commercial credit card accounts.

International

• Toyota Finance Corporation was announced as TSYS’ first processing relationship in Japan. TSYS now supports a new co-branded Visa offered by Toyota Finance and Nikko Cordial Securities. Through this relationship, TSYS provides multi-currency and multi-function support for cardholders with domestic and overseas transactions, making it the first product of its kind in Japan.

• TSYS also announced a new relationship in Japan with United Cinemas Co. to process its new Cinema Gift Card, a prepaid product.

• Also in the Asia-Pacific region, TSYS increased its equity interest in China UnionPay Data Services Co., Ltd (“CUP Data”), to 44.56%. The partnership is further strengthened by continued technology and service expertise offered by TSYS.

Merchant

• TSYS Acquiring Solutions announced plans with Discover Financial Services LLC to integrate Discover Network card acceptance into its offering for merchant acquirers and independent sales organizations.

Projected Outlook for 2006

TSYS’ new guidance raises earnings growth estimates to 26%–28% from 21%–23% based on the following assumptions:

1. Total revenues will increase 9%–11%.

2. Accounts on file at the end of 2006 will be approximately 395 million to 405 million.

3. Deconversion of Bank of America’s consumer portfolio will occur as scheduled in October 2006, with a one-time contract-termination payment of approximately $69 million and an acceleration of amortization of contract-acquisition costs of approximately $6 million (comprised of $4 million of amortization related to payments for processing rights, which is recorded as a reduction of revenues, and $2 million of amortization expense related to conversion costs).

4. Recognition of revenues and expenses associated with the Capital One agreement beginning in the fourth quarter of 2006.

5. International corporate restructuring resulting in a lower effective tax rate.

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2006

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Projected Outlook for 2007

Excluding the one-time Bank of America contract-termination payment in 2006 of approximately $69 million and the acceleration of amortization of Bank of America contract acquisition costs of approximately $6 million, earnings are expected to increase between 8%–10% in 2007 compared to estimated 2006 earnings. Based on generally accepted accounting principles (GAAP), TSYS’ estimated 2007 earnings are expected to decline between 9%–7% as compared to estimated 2006 earnings, versus previous guidance of a decline between 16%–14%.

TSYS’ 2007 earnings forecast is based on the following assumptions:

1. Estimated 2006 earnings growth will be 26%–28%.

2. The deconversion of Bank of America’s consumer portfolio will occur as scheduled in October 2006, with a one-time contract-termination payment of approximately $69 million and an acceleration of amortization of contract-acquisition costs of approximately $6 million.

3. Including the Bank of America termination payment, estimated total revenues will decline 5%–3% in 2007. Excluding the termination fee and reimbursable items, estimated revenues will be 0% to 2% over 2006.

4. The conversion of the Capital One portfolio, which was substantially completed in the fourth quarter of 2006, will be fully completed in 2007.

5. J.P. Morgan Chase & Co. will discontinue its processing agreement according to the original schedule and will license TSYS’ processing software in 2007.

6. Expense reductions in employment, equipment, leases and other areas that are included in 2007 estimates will be accomplished.

7. TSYS will not incur significant expenses associated with the conversion of new large clients or acquisitions, or any significant impairment of goodwill or other intangibles.

Presentation of revenues and earnings excluding the Bank of America termination payment, acceleration of amortization of contract acquisition costs and reimbursable items are non-GAAP financial measures. The following table is a reconciliation of the range of changes from 2006 to 2007, comparing non-GAAP estimated financial measures to GAAP estimated financial measures:

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2006

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	Range of Guidance ($ in millions)
	2007	2006	% change
Forecasted net income	$226 to $230	$249	(9%) to (7%)
Less: estimated termination payment and acceleration of amortization of contract acquisition costs, net of tax		($42)
Forecasted net income, excluding impact of termination payment and acceleration of amortization of contract acquisition cost	$226 to $230	$207	8% to 10%
Forecasted total revenues	$1,684 to $1,713	$1,773	(5%) to (3%)
Less: forecasted total reimbursable items	($318)	($346)
Less: estimated termination payment net of related contract acquisition cost amortization		($65)
Forecasted revenues, excluding reimbursable items and estimated termination payment	$1,366 to $1,395	$1,362	0% to 2%

TSYS believes the table above presents meaningful information to assist investors in understanding the company’s financial estimates for changes in total revenues and earnings from 2006 to 2007 as a result of the Bank of America consumer portfolio deconversion as the non-GAAP financial measures exclude amounts that the company does not consider part of ongoing operating results. The non-GAAP financial percentage changes should not be considered by themselves or as a substitute for the GAAP percentage changes year over year. The non-GAAP measures should be considered as an additional view of the way TSYS’ financial measures are affected by the one-time Bank of America contract termination payment, acceleration of amortization of contract acquisition costs and reimbursable items and should be used in conjunction with all publicly filed financial statements and reports.

Conference Call

TSYS will host its quarterly conference call at 8:30 a.m. EDT, Oct. 18. The conference call can be accessed via simultaneous Internet broadcast at tsys.com by clicking on the “Conference Call” icon on the homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call.

About TSYS

TSYS is one of the world’s largest payment-services companies, offering a broad range of packaged or outsourced issuing and acquiring technologies that support consumer finance, credit, debit and prepaid services for financial institutions and retail companies worldwide. Based in Columbus, Ga., TSYS (NYSE: TSS) is 80-percent held by Synovus (NYSE: SNV), one of FORTUNE magazine’s “Most Admired Companies” and a member of its “100 Best Companies to Work For” Hall of Fame. For more information, contact news@tsys.com.

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2006

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This press release contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding TSYS’ expected earnings growth for 2006 and 2007, and the assumptions underlying such statements, including, with respect to TSYS’ expected increase in earnings for 2006: (1) an increase in revenues of 9% to 11%; (2) accounts on file at the end of 2006 will be approximately 395 million to 405 million; (3) deconversion of Bank of America’s consumer portfolio as scheduled in October 2006 with a one-time termination payment of $69 million and an acceleration of amortization of approximately $6 million in contract-acquisition costs (comprised of $4 million of amortization related to payments for processing rights, which is recorded as a reduction of revenues, and $2 million of amortization expense related to conversion costs); (4) recognition of revenues and expenses associated with the Capital One agreement beginning in the fourth quarter of 2006; and (5) international corporate restructuring resulting in a lower effective tax rate, and further including , with respect to TSYS’ estimated 2007 earnings: (1) 2006 earnings growth will be in the 26-28% range; (2) deconversion of Bank of America’s consumer portfolio will occur as scheduled in October 2006, with a one-time contract termination payment of approximately $69 million and an acceleration of amortization of contract-acquisition costs of approximately $6 million; (3) including the Bank of America termination payment, estimated total revenues will decline 5-3% in 2007 and excluding the termination fee and reimbursable items, estimated revenues will be 0% to 2% over 2006; (4) the conversion of the Capital One portfolio, which was substantially completed in the fourth quarter of 2006, will be fully completed in 2007; (5) JP Morgan Chase & Co. will discontinue its processing agreement according to the original schedule and will license TSYS’ processing software in 2007; (6) expense reductions in employment, equipment, leases and other areas which are included in 2007 estimates will be accomplished; and (7) TSYS will not incur significant expenses associated with the conversion of new large clients and/or acquisitions, or any other significant impairment of goodwill or other intangibles. These statements are based on the current beliefs and expectations of TSYS’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond TSYS’ ability to control or predict. These factors include, but are not limited to, one or more of the assumptions upon which TSYS’ 2006 and 2007 earnings forecasts are based are inaccurate. Additional factors that could cause actual results to differ materially from those contemplated in this release can be found in TSYS’ filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

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2006

EX-99.2

Exhibit 99.2

TSYS Announces Third Quarter 2006 Earnings
Page 6 of 11
TSYS Financial Highlights (Unaudited) (In thousands, except per share data)
		Three months ended September 30,					Nine Months Ended September 30,
				Percentage					Percentage
		2006	2005	Change			2006	2005	Change
Revenues
Electronic payment processing services	$	232,171	224,394	3.5	%	$	685,532	646,199	6.1	%
Merchant services		65,548	74,207	(11.7)			195,318	170,008	14.9
Other services		44,619	43,499	2.6			133,831	137,337	(2.6)
Revenues before reimbursables		342,338	342,100	0.1			1,014,681	953,544	6.4
Reimbursable items		99,477	79,869	24.6			268,589	228,652	17.5
Total revenues		441,815	421,969	4.7			1,283,270	1,182,196	8.5
Expenses
Employment expenses		139,182	121,389	14.7			380,945	334,341	13.9
Net occupancy & equipment expenses		75,811	77,134	(1.7)			226,864	212,770	6.6
Other operating expense		55,088	71,245	(22.7)			178,027	191,449	(7.0)
Expenses before reimbursables		270,081	269,768	0.1			785,836	738,560	6.4
Reimbursable items		99,477	79,869	24.6			268,589	228,652	17.5
Total operating expenses		369,558	349,637	5.7			1,054,425	967,212	9.0
Operating Income		72,257	72,332	(0.1)			228,845	214,984	6.4
Other Income:
Interest income		3,363	1,592	111.2			9,297	3,889	139.1
Interest expense		(235)	(84)	(179.8)			(364)	(259)	(40.5)
Gain (loss) on foreign currency translation, net		282	66	327.3			195	(761)	125.6
Other Income		3,410	1,574	116.6			9,128	2,869	218.2
Income before Income Taxes, Minority Interest
and Equity in Income of Equity Investments		75,667	73,906	2.4			237,973	217,853	9.2
Income Taxes		22,380	26,777	(16.4)			78,492	78,186	0.4
Income before Minority Interest and
Equity in Income of Equity Investments		53,287	47,129	13.1			159,481	139,667	14.2
Minority Interest		(183)	(64)	(185.9)			(448)	(176)	(154.5)
Equity in Income of Equity Investments		1,202	991	21.3			3,073	5,331	(42.4)
Net Income	$	54,306	48,056	13.0	%	$	162,106	144,822	11.9	%
Basic Earnings Per Share	$	0.28	0.24	13.4	%	$	0.82	0.73	12.0	%
Diluted Earnings Per Share	$	0.28	0.24	13.3	%	$	0.82	0.73	12.0	%
Dividend Declared Per Share	$	0.07	0.06			$	0.20	0.16
Average Common Shares Outstanding		196,500	197,198				196,891	197,100
Average Common and Common
Equivalent Shares Outstanding		196,831	197,383				197,193	197,324

TSYS Announces Third Quarter 2006 Earnings
Page 7 of 11
TSYS
Segment Breakdown
(Unaudited)
(In thousands)
			Three Months Ended September 30, 2006				Three Months Ended September 30, 2005
			Domestic- based support services	International- based support services	Merchant processing services	Consolidated	Domestic- based support services	International- based support services	Merchant processing services	Consolidated
Revenues before reimbursables		$	242,584	44,320	59,723	346,627	244,302	31,389	70,333	346,024
Intersegment revenues			(4,258)	-	(31)	(4,289)	(3,867)	-	(57)	(3,924)
Revenues before reimbursables
from external customers		$	238,326	44,320	59,692	342,338	240,435	31,389	70,276	342,100
Total revenues		$	325,919	51,591	70,592	448,102	308,889	37,862	81,948	428,699
Intersegment revenues			(6,256)	-	(31)	(6,287)	(6,673)	-	(57)	(6,730)
Revenues from external customers		$	319,663	51,591	70,561	441,815	302,216	37,862	81,891	421,969
Depreciation and amortization		$	32,156	5,328	6,674	44,158	29,503	4,399	7,587	41,489
Intersegment expenses		$	3,668	2,343	7,599	13,610	5,627	(4,294)	(8,064)	(6,731)
Segment operating income		$	48,666	7,946	15,645	72,257	52,834	6,137	13,361	72,332
Income before income taxes, minority interest
and equity income of equity investments			52,688	6,602	16,377	75,667	54,823	5,483	13,600	73,906
Income tax expense		$	14,722	(31)	7,689	22,380	18,381	3,227	5,169	26,777
Equity in income of equity investments		$	-	1,202	-	1,202	-	991	-	991
Net Income		$	38,821	6,797	8,688	54,306	36,238	3,353	8,465	48,056
Identifiable assets			1,410,363	285,917	240,979	1,937,259
Intersegment eliminations			(416,964)	(195)	(143)	(417,302)
Total assets			993,399	285,722	240,836	1,519,957
			Nine Months Ended September 30, 2006				Nine Months Ended September 30, 2005
			Domestic- based support services	International- based support services	Merchant processing services	Consolidated	Domestic- based support services	International- based support services	Merchant processing services	Consolidated
Revenues before reimbursables		$	740,341	109,178	178,729	1,028,248	713,390	92,717	156,486	962,593
Intersegment revenues			(13,471)	-	(96)	(13,567)	(8,946)	-	(103)	(9,049)
Revenues before reimbursables
from external customers		$	726,870	109,178	178,633	1,014,681	704,444	92,717	156,383	953,544
Total revenues		$	963,855	128,163	211,659	1,303,677	904,700	109,604	182,877	1,197,181
Intersegment revenues			(20,311)	-	(96)	(20,407)	(14,882)	-	(103)	(14,985)
Revenues from external customers		$	943,544	128,163	211,563	1,283,270	889,818	109,604	182,774	1,182,196
Depreciation and amortization		$	95,759	14,101	20,446	130,306	84,209	12,416	12,073	108,698
Intersegment expenses		$	18,949	(15,448)	(23,864)	(20,363)	24,861	(21,833)	(18,022)	(14,994)
Segment operating income		$	176,412	12,029	40,404	228,845	176,346	8,143	30,495	214,984
Income before income taxes, minority interest
and equity income of equity investments			186,170	9,718	42,085	237,973	180,558	6,345	30,950	217,853
Income tax expense		$	58,636	2,461	17,395	78,492	61,003	4,294	12,889	78,186
Equity in income of equity investments		$	-	3,073	-	3,073	-	2,090	3,241	5,331
Net Income		$	128,352	9,064	24,690	162,106	118,692	4,773	21,357	144,822
Note:	Revenues for domestic-based services include electronic payment processing services and other services provided from the United States to clients domiciled in the United States or other countries. Revenues from international-based services include electronic payment processing services and other services provided from outside the United States to clients based mainly outside the United States. Revenues from merchant processing services include Vital's merchant processing and related services.
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TSYS Announces Third Quarter 2006 Earnings
Page 8 of 11
TSYS
Balance Sheet
(Unaudited)
(In thousands)
		Sept. 30, 2006	Dec 31, 2005
Assets
Current assets:
Cash and cash equivalents	$	255,722	237,569
Restricted cash		38,069	29,688
Accounts receivable, net		233,359	184,532
Deferred income tax assets		20,147	15,264
Prepaid expenses and other current assets		45,365	45,236
Total current assets		592,662	512,289
Computer software, net		230,715	267,988
Property and equipment, net		266,993	267,979
Contract acquisition costs, net		172,988	163,861
Goodwill, net		143,595	112,865
Equity investments, net		60,410	42,731
Other intangible assets, net		26,349	13,580
Other assets		26,245	29,604
Total assets	$	1,519,957	1,410,897
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	44,673	29,464
Accrued salaries and employee benefits		65,451	84,348
Current portion of obligations under capital leases		2,337	2,078
Other current liabilities		163,557	161,122
Total current liabilities		276,018	277,012
Deferred income tax liabilities		72,145	89,478
Obligations under capital leases excluding current portion		1,740	3,555
Other long-term liabilities		30,636	24,398
Total liabilities		380,539	394,443
Minority interest in consolidated subsidiary		4,114	3,682
Shareholders' Equity:
Common stock		19,840	19,797
Additional paid-in capital		62,635	50,666
Treasury stock		(34,601)	(12,841)
Accumulated other comprehensive income		15,305	5,685
Retained earnings		1,072,125	949,465
Total shareholders' equity		1,135,304	1,012,772
Total liabilities and shareholders' equity	$	1,519,957	1,410,897
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TSYS Announces Third Quarter 2006 Earnings
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TSYS
Cash Flow
(Unaudited)
(In thousands)
		Nine Months Ended September 30,
		2006	2005
Cash flows from operating activities:
Net income	$	162,106	144,822
Adjustments to reconcile net income to net cash provided by
operating activities:
Minority interests in consolidated subsidiaries' net income		448	176
Equity in income of equity investments		(3,073)	(5,331)
(Gain) loss on currency translation adjustments, net		(195)	761
Depreciation and amortization		130,306	108,698
Share-based compensation		6,574	849
Excess tax benefit from share-based payment arrangements		1,800	-
Impairment of developed software		-	3,619
Charges for (recoveries of) bad debt expense and billing
adjustments		948	5,451
Charges for transaction processing provisions		7,914	7,634
Deferred income tax (benefit) expense		(24,150)	6,574
Loss on disposal of equipment, net		105	1,802
(Increase) decrease in:
Accounts receivable		(40,765)	(40,072)
Prepaid expenses and other assets		8,923	6,962
Increase (decrease) in:
Accounts payable		14,323	(59,241)
Accrued salaries and employee benefits		(18,936)	4,408
Other liabilities		(14,849)	(63,175)
Net cash provided by operating activities		231,479	123,937
Cash flows from investing activities:
Purchase of property and equipment, net		(21,203)	(33,540)
Additions to licensed computer software from vendors		(9,650)	(10,049)
Additions to internally developed computer software		(13,699)	(17,435)
Cash acquired in acquisition		4,341	38,798
Cash used in acquisitions		(74,919)	(95,796)
Dividends received from equity investments		2,371	1,658
Contract acquisition costs		(39,578)	(11,756)
Net cash used in investing activities		(152,337)	(128,120)
Cash flows from financing activities:
Proceeds from borrowings of long-term debt		-	48,143
Principal payments on long-term debt borrowings and
capital lease obligations		(1,561)	(49,360)
Proceeds from exercise of stock options		3,725	2,920
Repurchase of common stock		(21,843)	-
Excess tax benefit from share-based payment arrangements		(1,800)	-
Dividends paid on common stock		(37,504)	(27,582)
Net cash used in financing activities		(58,983)	(25,879)
Effect of foreign currency translation on cash and cash equivalents		(2,006)	(2,388)
Net increase in cash and cash equivalents		18,153	(32,450)
Cash and cash equivalents at beginning of year		237,569	231,806
Cash and cash equivalents at end of period	$	255,722	199,356
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TSYS Announces Third Quarter 2006 Earnings
Page 10 of 11
Geographic Area Data:
The following geographic area data represents revenues for the three months ended September 30 based on where the client is domiciled:
		Three Months Ended September 30,
(dollars in millions):		2006	%			2005	%		% Chg
United States	$	359.6	81.4	%	$	358.1	84.9	%	0.4	%
Europe*		43.7	9.9			34.2	8.1		27.6
Canada		25.4	5.8			23.2	5.5		9.5
Japan		5.0	1.1			4.0	0.9		26.8
Mexico		3.2	0.7			1.9	0.5		63.2
Other*		4.9	1.1			0.6	0.1		nm
	$	441.8	100.0	%	$	422.0	100.0	%	4.7	%
The following geographic area data represents revenues for the nine months ended September 30 based on where the client is domiciled:
		Nine Months Ended September 30,
(dollars in millions):		2006	%			2005	%		% Chg
United States	$	1,069.8	83.3	%	$	998.0	84.4	%	7.2	%
Europe*		112.6	8.8			98.9	8.4		14.5
Canada		71.5	5.6			66.6	5.6		7.3
Japan		13.4	1.0			11.6	1.0		15.5
Mexico		8.5	0.7			5.3	0.4		60.9
Other*		7.5	0.6			1.8	0.2		nm
	$	1,283.3	100.0	%	$	1,182.2	100.0	%	8.5	%

Geographic Area Revenue by Operating Segment:
The following table reconciles segment revenues to revenues by reporting segment for the three months ended September 30:
		Three Months Ended September 30,
		Domestic-based		International-based		Merchant processing
		support services		support services		services
(dollars in millions):		2006	2005	2006	2005	2006	2005
United States	$	289.4	276.4	-	-	70.3	81.7
Europe*		0.4	0.4	43.3	33.9	-	-
Canada		25.2	23.0	-	-	0.1	0.1
Japan		-	-	5.0	4.0	-	-
Mexico		3.2	1.9	-	-	-	-
Other*		4.7	0.5	-	-	0.2	0.1
	$	322.9	302.2	48.3	37.9	70.6	81.9
The following table reconciles segment revenues to revenues by reporting segment for the nine months ended September 30:
		Nine Months Ended September 30,
		Domestic-based		International-based		Merchant processing
		support services		support services		Services
(dollars in millions):		2006	2005	2006	2005	2006	2005
United States	$	859.0	815.7	-	-	210.8	182.1
Europe*		1.1	1.0	111.5	98.0	-	-
Canada		71.1	66.4	-	-	0.4	0.3
Japan		-	-	13.4	11.6	-	-
Mexico		8.5	5.3	-	-	-	-
Other*		7.0	1.4	-	-	0.5	0.4
	$	946.7	889.8	124.9	109.6	211.7	182.8
*Geographic area revenue by operating segment has been restated in 2005 to reflect the changes in operating segment.
nm = not meaningful
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TSYS Announces Third Quarter 2006 Earnings
Page 11 of 11
Supplemental Information:
	Accounts on File at September 30,
(in millions)	2006	%		2005	%		% Change
Consumer	259.3	64.8	%	264.1	61.4	%	(1.8)	%
Retail*	51.5	12.9		85.4	19.9		(39.7)
Commercial	32.5	8.1		30.1	7.0		7.9
Government services/EBT	20.7	5.2		18.3	4.3		13.3
Stored Value*	31.7	7.9		24.7	5.7		28.3
Debit	4.3	1.1		7.5	1.7		(41.7)
	400.0	100.0	%	430.1	100.0	%	(7.0)	%
* Certain accounts previously classified as Retail have been reclassified as Stored Value to conform with the presentation adopted in the second quarter of 2006.

(in millions)	September 30, 2006	September 30, 2005	% Change
QTD Average Accounts on File	385.8	424.6	(9.2)	%
YTD Average Accounts on File	413.6	389.4	6.2

	Accounts on File at September 30,
(in millions)	2006	%		2005		%		% Change
Domestic	334.8	83.7	%	375.3	87.3		%	(10.8)	%
International	65.2	16.3		54.8	12.7			19.0
	400.0	100.0	%	430.1	100.0		%	(7.0)	%
Note: The accounts on file between domestic and international is based on the geographic domicile of processing clients.

Growth in Accounts on File (in millions):
	September 2005 to September 2006	September 2004 to September 2005
Beginning balance	430.1	315.3
Change in accounts on file due to:
Internal growth of existing clients	38.0	44.5
New clients	33.1	79.3
Purges/Sales	(13.9)	(7.9)
Deconversions	(87.3)	(1.1)
Ending balance	400.0	430.1
Number of Employees (FTEs):	2006	2005
At September 30,	6,779	6,522
Quarterly average for period ended September 30,	6,639	6,483
YTD average for period ended September 30,	6,616	6,223
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