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

January 20, 2010

Date of Report (Date of Earliest Event Reported)

Total System Services, Inc.

(Exact Name of Registrant as Specified in its Charter)

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

One TSYS Way, 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:

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

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

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

o 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 January 20, 2010, Total System Services, Inc. (“Registrant”) issued a press release announcing financial results for the full year and fourth quarter ended December 31, 2009. The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information in the press release 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.

On January 20, 2010, Registrant will hold an investor conference call and webcast to discuss its financial results for the full year and fourth quarter ended December 31, 2009. A copy of the presentation to be used during the conference call is attached hereto as Exhibit 99.2 and incorporated herein by reference. The information in the presentation 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 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit
No.	Description
99.1	Registrant’s press release dated January 20, 2010
99.2	Registrant’s presentation dated January 20, 2010

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: January 20, 2010	By:	/s/ Kathleen Moates
		Kathleen Moates
		Senior Deputy General Counsel

3

EX-99.1

Exhibit 99.1

	PRESS RELEASE

Total System Services, Inc.
One TSYS Way
Post Office Box 2567
Columbus GA 31902-2567 +1.706.649.2307
+1.706.649.5740
www.tsys.com

For immediate release:

Contacts:

Shawn Roberts
TSYS Investor Relations
+1.706.644.6081
shawnroberts@tsys.com

TSYS Reports Fourth Quarter and Full Year 2009 Results

Columbus, Ga., January 20, 2010 — TSYS (NYSE: TSS) today reported results for the fourth quarter and full year 2009. On a constant currency basis, TSYS’ total revenues for 2009 were $1,734.9 million, an increase of 0.8%. On a reported basis, total revenues declined 2.0% for the year to $1,688.1 million.

On a constant currency basis, TSYS’ total revenues for the fourth quarter were $430.9 million, a decrease of 0.4% as compared to last year. On a reported basis, total revenues increased 0.5% for the quarter to $434.8 million.

Basic earnings per share (EPS) from continuing operations were $0.31 for the fourth quarter, $0.01 ahead of consensus estimates and 9.0% below 2008. Full year EPS of $1.12 from continuing operations matched consensus estimates and was 11.2% below last year.

TSYS’ guidance for 2010 includes the impact of deconverted portfolios (whether as the result of bank failures, portfolio sales or otherwise), price compression, reduction in one-time termination fees and currency impact, and the current economic environment of the credit card market.

	2010 Guidance
	Range
	(in millions, except per					Percent
	share amounts)					Change
Total revenues	$	1,616	to	$	1,648		(4	%)	to	(2	%)
Reimbursable items	$	279	to	$	284		3	%	to	5	%
Revenues before reimbursable items	$	1,337	to	$	1,364		(6	%)	to	(4	%)
Income from continuing operations	$	187	to	$	191		(15	%)	to	(13	%)
EPS from continuing operations	$	0.95	to	$	0.97		(15	%)	to	(14	%)
Average Shares Outstanding			197.7

Page 1 of 12

	PRESS RELEASE

“While 2010 is going to be a challenging year, we will continue to work aggressively to reduce our costs, including reducing staff, while expanding internationally and maintaining our technological advantage in the market place. We have an experienced and talented team at TSYS who will successfully execute our strategy to return growth to our business. In addition, with our strong balance sheet and cash flow, we will continue to aggressively pursue strategic acquisitions that diversify us and expand our presence in the payments processing business,” said Philip W. Tomlinson, chairman of the board and chief executive officer of TSYS.

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Wednesday, January 20. The conference call can be accessed via simultaneous Internet broadcast at tsys.com by clicking on the link under “Webcasts” on the main homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call. A slide presentation to accompany the call will be available by clicking on the link under “Webcasts” on the main homepage of tsys.com.

Non-GAAP Measures

This release contains the non-GAAP financial measures of revenues and operating results on a constant currency basis to describe TSYS’ performance. Management uses these non-GAAP financial measures to better understand and assess TSYS’ operating results and financial performance. TSYS believes these non-GAAP financial measures provide meaningful additional information about TSYS to assist investors in understanding and evaluating its operating results.

Additional information about non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP measures are included on page 11 of this release.

About TSYS

TSYS (NYSE: TSS) is one of the world’s largest companies for outsourced payment services, offering a broad range of issuer- and acquirer-processing technologies that support consumer-finance, credit, debit, healthcare, loyalty and prepaid services for financial institutions and retail companies in the Americas, EMEA and Asia-Pacific regions. For more information contact news@tsys.com or log on to www.tsys.com. TSYS routinely posts all important information on its Web site.

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’ earnings forecast for 2010, and the assumptions underlying such statements including, with respect to TSYS’ earnings forecast for 2010: (1) the economy will not worsen during 2010; (2) there will be no deconversions of large clients during the year other than as previously announced; (3) there will be no significant movement in foreign currency exchange rates related to TSYS’ business during 2010; (4) the anticipated levels in employment, technology and other expenses, which are included in 2010 estimates, will be accomplished; (5) 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; and (6) there will be no significant movements in LIBOR, and no significant draws on the remaining balance of TSYS’

Page 2 of 12

	PRESS RELEASE

revolving credit facility. 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: (1) one or more of the assumptions set forth above upon which TSYS’ 2010 earnings forecast is based is inaccurate; (2) adverse developments with respect to entering into contracts with new clients and retaining current clients; (3) continued consolidation and turmoil in the financial services and other industries during 2010, including the merger of TSYS clients with entities that are not TSYS processing clients, the sale of portfolios by TSYS clients to entities that are not TSYS processing clients and the seizure by banking regulators of TSYS clients; (4) TSYS is unable to control expenses and increase market share; (5) TSYS is unable to manage the impact of slowing economic conditions and consumer spending; (6) the material breach of security of any of TSYS’ systems; (7) the impact of acquisitions, including their being more difficult to integrate than anticipated; (8) changes occur in laws, rules, regulations, credit card association rules or other industry standards affecting TSYS’ business which require significant product development efforts or reduce the market demand for or value of its products; (9) adverse developments with respect to the credit card industry in general, including a decline in the use of credit cards as a payment mechanism; and (10) growth rates of TSYS’ existing clients are lower than anticipated whether as a result of unemployment rates, card delinquencies and charge-off rates or otherwise. 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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TSYS Announces 2009 Earnings
Page 4 of 12

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

	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
							Percent									Percent
	2009			2008			Change			2009			2008			Change
Revenues
Electronic payment processing services	$	239,795			247,748			(3.2	)%	$	946,298			995,430			(4.9	)%
Merchant acquiring services		70,429			69,649			1.1			277,434			261,537			6.1
Other services		52,527			50,468			4.1			194,152			199,787			(2.8	)
Revenues before reimbursable items		362,751			367,865			(1.4	)		1,417,884			1,456,754			(2.7	)
Reimbursable items		72,089			64,879			11.1			270,178			264,892			2.0
Total revenues		434,840			432,744			0.5			1,688,062			1,721,646			(2.0	)
Expenses
Salaries & other personnel expenses		140,619			146,504			(4.0	)		581,650			586,295			(0.8	)
Net technology & facilities expenses		77,644			75,390			3.0			301,820			297,265			1.5
Spin related expenses		—			1,272			(100.0	)		—			11,140			(100.0	)
Other operating expenses		51,204			54,258			(5.6	)		192,381			193,379			(0.5	)
Expenses before reimbursable items		269,467			277,424			(2.9	)		1,075,851			1,088,079			(1.1	)
Reimbursable items		72,089			64,879			11.1			270,178			264,892			2.0
Total operating expenses		341,556			342,303			(0.2	)		1,346,029			1,352,971			(0.5	)
Operating income		93,284			90,441			3.1			342,033			368,675			(7.2	)
Nonoperating (expenses) income		(279	)		5,003			nm			(3,441	)		5,772			nm
Income from continuing operations before income taxes, noncontrolling interests and equity in income of equity investments		93,005			95,444			(2.6	)		338,592			374,447			(9.6	)
Income taxes		32,799			30,227			8.5			121,238			131,206			(7.6	)
Income from continuing operations before noncontrolling interests and equity in income of equity investments		60,206			65,217			(7.7	)		217,354			243,241			(10.6	)
Equity in income of equity investments		2,694			1,064			nm			6,985			7,397			(5.6	)
Income from continuing operations, net of tax		62,900			66,281			(5.1	)		224,339			250,638			(10.5	)
(Loss) income from discontinued operations, net of tax		(8	)		302			nm			(5,163	)		1,038			nm
Net income		62,892			66,583			(5.5	)		219,176			251,676			(12.9	)
Net income attributable to noncontrolling interests		(2,678	)		(255	)		nm			(3,963	)		(1,576	)		nm
Net income attributable to TSYS	$	60,214			66,328			(9.2	)%	$	215,213			250,100			(13.9	)%
Basic earnings per share:
Income from continuing operations to TSYS common shareholders*	$	0.31			0.34			(8.9	)%	$	1.12			1.26			(11.2	)%
(Loss) income from discontinued operations to TSYS common shareholders*		0.00			0.00			nm			(0.03	)		0.01			nm
Net income attributable to TSYS common shareholders*	$	0.31			0.34			(9.3	)%	$	1.09			1.26			(13.7	)%
Diluted earnings per share:
Income from continuing operations to TSYS common shareholders*	$	0.31			0.34			(8.9	)%	$	1.12			1.26			(11.3	)%
(Loss) income from discontinued operations to TSYS common shareholders*		0.00			0.00			nm			(0.03	)		0.01			nm
Net income attributable to TSYS common shareholders*	$	0.31			0.34			(9.4	)%	$	1.09			1.26			(13.7	)%
Dividends declared per share	$	0.07			0.07					$	0.28			0.28
Amounts attributable to TSYS common shareholders:
Income from continuing operations, net of tax	$	60,222			66,026					$	220,376			249,062
(Loss) income from discontinued operations, net of tax		(8	)		302						(5,163	)		1,038
Net income	$	60,214			66,328					$	215,213			250,100

nm = not meaningful
Note: Certain amounts have been reclassified to conform with the presentation adopted in 2009.
*	Basic and diluted EPS amounts for continuing operations and net income do not total due to rounding.
Basic and diluted EPS is computed based on the two-class method in accordance with the update to Accounting Standards Codification 260 (ASC 260) (previously referred to as FSP EITF 03-6-1). EPS for 2009 and 2008 have been recast to show retroactive adoption of the ASC 260 update.

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TSYS Announces 2009 Earnings
Page 5 of 12

TSYS
Earnings Per Share
(unaudited)
(in thousands, except per share data)

	Three Months Ended					Three Months Ended					Twelve Months Ended					Twelve Months Ended
	December 31, 2009					December 31, 2008					December 31, 2009					December 31, 2008
	Common			Participating		Common			Participating		Common			Participating		Common			Participating
	Stock			Securities		Stock			Securities		Stock			Securities		Stock			Securities
Basic Earnings per share:
Net income	$	60,214					66,328					215,213					250,100
Less income allocated to nonvested awards		(413	)		413		(521	)		521		(1,644	)		1,644		(2,069	)		2,069
Net income allocated to common stock for EPS calculation ( a )	$	59,801			413		65,807			521		213,569			1,644		248,031			2,069
Average common shares outstanding ( b )		195,835			1,356		195,403			1,551		195,623			1,511		196,106			1,640
Average common shares and participating securities		197,191					196,954					197,134					197,746
Basic Earnings per share ( a )/( b )	$	0.31			0.30		0.34			0.34		1.09			1.09		1.26			1.26
Diluted Earnings per share:
Net income	$	60,214					66,328					215,213					250,100
Less income allocated to nonvested awards		(413	)		413		(520	)		520		(1,644	)		1,644		(2,069	)		2,069
Net income allocated to common stock for EPS calculation ( c )	$	59,801			413		65,808			520		213,569			1,644		248,031			2,069
Average common shares outstanding		195,835			1,356		195,403			1,551		195,623			1,511		196,106			1,640
Increase due to assumed issuance of shares related to common equivalent shares outstanding		63					1					63					20
Average common and common equivalent shares outstanding ( d )		195,898			1,356		195,404			1,551		195,686			1,511		196,126			1,640
Average common and common equivalent shares and participating securities		197,254					196,955					197,197					197,766
Diluted Earnings per share ( c )/( d )	$	0.31			0.30		0.34			0.34		1.09			1.09		1.26			1.26

In June 2008, the Financial Accounting Standards Board (FASB) issued an update to the Accounting Standards Codification 260 (ASC 260), “Earnings Per Share” (previously referred to as FASB Staff Position Emerging Issues Task Force No. 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities,”) and it became effective for TSYS beginning January 1, 2009. Under this standard, unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our nonvested awards, are considered participating securities for purposes of calculating earnings per share (“EPS”). Under the two-class method required by ASC 260, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of EPS allocated to common stock, as shown in the table above. This update to ASC 260 requires retrospective applications for periods prior to the effective date and as a result, all prior period earnings per share data presented herein have been adjusted to conform to these provisions.

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TSYS Announces 2009 Earnings
Page 6 of 12

TSYS
Segment Breakdown
(unaudited)
(in thousands)

	Three Months Ended December 31,												Twelve Months Ended December 31,
							Change												Change
	2009			2008			$			%			2009			2008			$			%
Revenues before reimbursable items
North America Services	$	214,027			234,577			(20,550	)		(8.8	)%		880,668			938,442			(57,774	)		(6.2	)%
International Services		96,264			77,254			19,010			24.6	%		322,697			307,361			15,336			5.0	%
Merchant Services		58,676			62,690			(4,014	)		(6.4	)%		242,841			234,467			8,374			3.6	%
Intersegment revenues		(6,216	)		(6,656	)		440			(6.6	)%		(28,322	)		(23,516	)		(4,806	)		20.4	%
Revenues before reimbursable items from external customers	$	362,751			367,865			(5,114	)		(1.4	)%		1,417,884			1,456,754			(38,870	)		(2.7	)%
Total revenues
North America Services	$	253,579			282,269			(28,690	)		(10.2	)%		1,048,932			1,136,901			(87,969	)		(7.7	)%
International Services		101,350			80,718			20,632			25.6	%		337,757			318,534			19,223			6.0	%
Merchant Services		87,965			78,675			9,290			11.8	%		337,635			298,792			38,843			13.0	%
Intersegment revenues		(8,054	)		(8,918	)		864			(9.7	)%		(36,262	)		(32,581	)		(3,681	)		11.3	%
Revenues from external customers	$	434,840			432,744			2,096			0.5	%		1,688,062			1,721,646			(33,584	)		(2.0	)%
Depreciation and amortization North America Services	$	20,920			24,014			(3,094	)		(12.9	)%		86,730			97,006			(10,276	)		(10.6	)%
International Services		9,567			7,340			2,227			30.3	%		36,328			33,490			2,838			8.5	%
Merchant Services		8,470			7,778			692			8.9	%		32,864			27,797			5,067			18.2	%
Total depreciation and amortization	$	38,957			39,132			(175	)		(0.4	)%		155,922			158,293			(2,371	)		(1.5	)%
Segment operating income North America Services	$	57,599			63,943			(6,344	)		(9.9	)%		234,512			265,858			(31,346	)		(11.8	)%
International Services		18,324			12,425			5,899			47.5	%		43,238			48,362			(5,124	)		(10.6	)%
Merchant Services		17,361			15,345			2,016			13.1	%		64,283			65,595			(1,312	)		(2.0	)%
Spin-related costs		—			(1,272	)		1,272			(100.0	)%		—			(11,140	)		11,140			(100.0	)%
Operating income	$	93,284			90,441			2,843			3.1	%		342,033			368,675			(26,642	)		(7.2	)%
													At						Change
Total assets														12/31/2009			12/31/2008		$				%
North America Services													$	1,535,129			1,415,960			119,169			8.4	%
International Services														379,606			324,313			55,293			17.0	%
Merchant Services														215,855			212,779			3,076			1.4	%
Intersegment assets														(419,636	)		(403,028	)		(16,608	)		4.1	%
Total assets													$	1,710,954			1,550,024			160,930			10.4	%

Note:	Revenues from North America 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 Services include electronic payment processing services and other services provided from outside the United States to clients based mainly outside the United States.
	Revenues from Merchant Services include TSYS Acquiring’s merchant acquiring and related services.
	Certain amounts have been reclassified to conform with the presentation adopted in 2009.

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TSYS Announces 2009 Earnings
Page 7 of 12

TSYS
Balance Sheet
(in thousands)

	Dec 31, 2009			Dec 31, 2008
	(unaudited)			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	449,955			211,365
Restricted cash		46,190			31,128
Accounts receivable, net		230,836			246,767
Deferred income tax assets		11,302			29,615
Prepaid expenses and other current assets		72,124			88,612
Current assets of discontinued operations		—			24,570
Total current assets		810,407			632,057
Property and equipment, net		289,198			291,341
Computer software, net		197,134			202,038
Contract acquisition costs, net		128,038			131,568
Goodwill		168,610			165,995
Equity investments, net		75,495			74,012
Other intangible assets, net		14,132			17,452
Other assets		27,940			28,316
Long-term assets of discontinued operations		—			7,245
Total assets	$	1,710,954			1,550,024
Liabilities
Current liabilities:
Current portion of notes payable	$	6,988			8,575
Accrued salaries and employee benefits		32,457			46,701
Accounts payable		21,729			32,440
Current portion of obligations under capital leases		6,289			6,344
Other current liabilities		153,316			130,751
Current liabilities of discontinued operations		—			10,993
Total current liabilities		220,779			235,804
Notes payable, excluding current portion		192,367			196,295
Deferred income tax liabilities		47,162			60,573
Obligations under capital leases, excluding current portion		12,756			13,576
Other long-term liabilities		48,443			40,709
Long-term liabilities of discontinued operations		—			2,217
Total liabilities		521,507			549,174
Equity
Shareholders’ equity:
Common stock		20,086			20,036
Additional paid-in capital		139,742			126,889
Accumulated other comprehensive income, net		5,673			(6,627	)
Treasury stock		(69,950	)		(69,641	)
Retained earnings		1,080,250			920,292
Total shareholders’ equity		1,175,801			990,949
Noncontrolling interests in consolidated subsidiaries		13,646			9,901
Total equity		1,189,447			1,000,850
Total liabilities and equity	$	1,710,954			1,550,024

Note: Certain amounts have been reclassified to conform with the presentation adopted in 2009.

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TSYS Announces 2009 Earnings
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TSYS
Cash Flow
(unaudited)
(in thousands)

	Twelve Months Ended December 31,
	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	219,176			251,676
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of equity investments		(6,985	)		(7,397	)
Dividends received from equity investments		4,942			6,421
Net loss (gain) on currency translation adjustments		2,607			(10,481	)
Depreciation and amortization		156,471			164,643
Amortization of debt issuance costs		154			154
Share-based compensation		16,128			24,733
Excess tax benefit from share-based payment arrangements		(6	)		(90	)
Provisions for bad debt expense and billing adjustments		6,381			618
Charges for transaction processing provisions		6,556			3,172
Deferred income tax benefit		(3,864	)		(4,439	)
(Gain) loss on disposal of equipment, net		375			182
Loss on disposal of subsidiary		5,713			—
(Increase) decrease in:
Accounts receivable		13,414			(15,490	)
Prepaid expenses, other current assets and other long-term assets		27,893			(48,024	)
Increase (decrease) in:
Accounts payable		(14,490	)		4,550
Accrued salaries and employee benefits		(11,697	)		(25,267	)
Other current liabilities and other long-term liabilities		369			7,874
Net cash provided by operating activities		423,137			352,835
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net		(34,017	)		(47,969	)
Additions to licensed computer software from vendors		(20,059	)		(31,499	)
Additions to internally developed computer software		(31,445	)		(21,777	)
Proceeds from disposition, net of expenses paid and cash disposed		1,979			—
Cash used in acquisitions, net of cash acquired		(294	)		(50,017	)
Subsidiary repurchase of noncontrolling interest		—			(343	)
Additions to contract acquisition costs		(35,596	)		(41,456	)
Net cash used in investing activities		(119,432	)		(193,061	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings of long-term debt		5,334			18,575
Principal payments on long-term debt borrowings and capital lease obligations		(18,869	)		(67,631	)
Proceeds from exercise of stock options		2			268
Excess tax benefit from share-based payment arrangements		6			90
Repurchase of common stock		(329	)		(35,698	)
Subsidiary dividends paid to noncontrolling shareholders		(235	)		(241	)
Dividends paid on common stock		(55,207	)		(55,449	)
Net cash used in financing activities		(69,298	)		(140,086	)
CASH AND CASH EQUIVALENTS:
Effect of exchange rate changes on cash and cash equivalents		(4,470	)		(10,188	)
Net increase in cash and cash equivalents		229,937			9,500
Cash and cash equivalents at beginning of period		220,018			210,518
Cash and cash equivalents at end of period	$	449,955			220,018

Note: Certain amounts have been reclassified to conform with the presentation adopted in 2009.

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TSYS Announces 2009 Earnings
Page 9 of 12

Geographic Area Data:

The following geographic area data represents revenues for the three months ended December 31 based on where the client is domiciled:

	Three Months Ended December 31,
											Percent
(dollars in millions)	2009		%			2008		%			Change
United States	$	291.6		67.1	%	$	315.4		72.9	%		(7.5	)%
Europe		79.9		18.4			65.0		15.0			23.0
Canada		39.0		9.0			32.3		7.5			20.7
Japan		15.3		3.5			11.2		2.6			36.7
Mexico		1.8		0.4			2.2		0.5			(19.8	)
Other		7.2		1.6			6.6		1.5			8.5
	$	434.8		100.0	%	$	432.7		100.0	%		0.5	%

The following geographic area data represents revenues for the twelve months ended December 31 based on where the client is domiciled:

	Twelve Months Ended December 31,
											Percent
(dollars in millions)	2009		%			2008		%			Change
United States	$	1,194.4		70.7	%	$	1,253.0		72.8	%		(4.7	)%
Europe		269.4		16.0			269.1		15.6			0.1
Canada		139.7		8.3			127.1		7.4			9.9
Japan		48.9		2.9			33.9		2.0			44.2
Mexico		8.2		0.5			13.4		0.8			(39.4	)
Other		27.5		1.6			25.1		1.4			9.9
	$	1,688.1		100.0	%	$	1,721.6		100.0	%		(2.0	)%

Geographic Area Revenue by Operating Segment:

The following table reconciles revenues by geography to revenues by reporting segment for the three months ended December 31:

	Three Months Ended December 31,
	North America				International				Merchant
	Services				Services				Services
(dollars in millions)	2009		2008		2009		2008		2009		2008
United States	$	204.3		237.5		—		—		87.3		77.9
Europe		0.2		0.2		79.7		64.8		—		—
Canada		38.9		32.2		—		—		0.1		0.1
Japan		—		—		15.3		11.2		—		—
Mexico		1.8		2.2		—		—		—		—
Other		2.1		2.3		4.9		4.1		0.2		0.2
	$	247.3		274.4		99.9		80.1		87.6		78.2

The following table reconciles revenues by geography to revenues by reporting segment for the twelve months ended December 31:

	Twelve Months Ended December 31,
	North America				International				Merchant
	Services				Services				Services
(dollars in millions)	2009		2008		2009		2008		2009		2008
United States	$	859.5		956.6		0.1		0.2		334.8		296.2
Europe		0.9		0.9		268.5		268.2		—		—
Canada		139.1		126.5		—		—		0.6		0.6
Japan		—		—		48.9		33.9		—		—
Mexico		8.2		13.4		—		—		—		—
Other		9.6		9.7		17.1		14.6		0.8		0.8
	$	1,017.3		1,107.1		334.6		316.9		336.2		297.6

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TSYS Announces 2009 Earnings
Page 10 of 12

Supplemental Information:

	Accounts on File at December 31,
											Percent
(in millions)	2009		%			2008		%			Change
Consumer		187.8		54.5	%		205.8		58.4	%		(8.8	)%
Retail		42.9		12.4			52.9		15.0			(18.9	)
Commercial		41.1		11.9			42.8		12.1			(4.0	)
Government services		25.5		7.4			21.2		6.0			20.7
Stored Value		42.3		12.3			24.9		7.1			69.9
Debit		5.2		1.5			4.9		1.4			4.5
		344.8		100.0	%		352.5		100.0	%		(2.2	)%

					Percent
(in millions)	December 31, 2009		December 31, 2008		Change
QTD Average Accounts on File		342.3		355.5		(3.7	)%
YTD Average Accounts on File		347.9		365.7		(4.9	)%

	Accounts on File at December 31,
											Percent
(in millions)	2009		%			2008		%			Change
Domestic		255.5		74.1	%		268.1		76.1	%		(4.7	)%
International		89.3		25.9			84.4		23.9			5.9
		344.8		100.0	%		352.5		100.0	%		(2.2	)%

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):

	December 2008 to			December 2007 to
	December 2009			December 2008
Beginning balance		352.5			375.5
Change in accounts on file due to:
Internal growth of existing clients		25.2			36.5
New clients		28.1			22.7
Purges/Sales		(34.1	)		(46.3	)
Deconversions		(26.9	)		(35.9	)
Ending balance		344.8			352.5

Number of Employees (FTEs):	2009		2008
At December 31,		7,620		8,110
Quarterly average for period ended December 31,		7,623		8,053
YTD average for period ended December 31,		7,898		7,691

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TSYS Announces 2009 Earnings
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Reconciliation of GAAP to Non-GAAP

Non-GAAP Measures

The schedule below provides a reconciliation of revenues and operating results on a constant currency basis to reported revenues and operating income. This non-GAAP measure presents fourth quarter and year-to-date 2009 financial results using the previous year’s foreign currency exchange rates. On a year-to-date constant currency basis, TSYS’ total revenues grew 0.8% as compared to a reported GAAP decline of 2.0%, and operating income declined 5.3% versus a GAAP-reported decline of 7.2%.

The non-GAAP financial measures of constant currency presented by TSYS are utilized by management to better understand and assess TSYS’ operating results and financial performance. TSYS also uses the non-GAAP financial measures to evaluate and assess TSYS’ financial performance against budget, as well as to evaluate financial performance for executive and management compensation purposes.

TSYS believes that non-GAAP financial measures are important to enable investors to understand and evaluate its ongoing operating results. Accordingly, TSYS includes non-GAAP financial measures when reporting its financial results to shareholders and investors in order to provide them with an additional tool to evaluate TSYS’ ongoing business operations. TSYS believes that the non-GAAP financial measures are representative of comparative financial performance that reflects the economic substance of TSYS’ current and ongoing business operations.

Although non-GAAP financial measures are often used to measure TSYS’ operating results and assess its financial performance, they are not necessarily comparable to similarly titled captions of other companies due to potential inconsistencies in the method of calculation.

TSYS believes that its use of non-GAAP financial measures provides investors with the same key financial performance indicators that are utilized by management to assess TSYS’ operating results, evaluate the business and make operational decisions on a prospective, going-forward basis. Hence, management provides disclosure of non-GAAP financial measures to give shareholders and potential investors an opportunity to see TSYS as viewed by management, to assess TSYS with some of the same tools that management utilizes internally and to be able to compare such information with prior periods. TSYS believes that the presentation of GAAP financial measures alone would not provide its shareholders and potential investors with the ability to appropriately analyze its ongoing operational results, and therefore expected future results. TSYS therefore believes that inclusion of non-GAAP financial measures provides investors with additional information to help them better understand its financial statements just as management utilizes these non-GAAP financial measures to better understand the business, manage budgets and allocate resources.

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TSYS Announces 2009 Earnings
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Reconciliation of GAAP to Non-GAAP

Constant Currency Comparison
(unaudited)
(in thousands)

	Three Months Ended December 31,							Twelve Months Ended December 31,
					Percent								Percent
	2009		2008		Change			2009			2008		Change
Consolidated
Constant currency (1)	$	430,944		432,744		(0.4	)%	$	1,734,859			1,721,646		0.8	%
Foreign currency (2)		3,896		—		0.9			(46,797	)		—		(2.7	)
Total revenues	$	434,840		432,744		0.5	%	$	1,688,062			1,721,646		(2.0	)%
Constant currency (1)	$	92,599		90,441		2.4	%	$	349,233			368,675		(5.3	)%
Foreign currency (2)		685		—		0.8			(7,200	)		—		(2.0	)
Operating income	$	93,284		90,441		3.1	%	$	342,033			368,675		(7.2	)%

(1)	Reflects current period results on a non-GAAP basis as if foreign currency rates did not change from the comparable prior year period.
(2)	Reflects the impact of calculated changes in foreign currency rates from the comparable period.

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EX-99.2

Exhibit 99.2

2009 Fourth Quarter Results January 20, 2010

Forward-Looking Statements This presentation contains forward-looking statements about the future operating results of TSYS. These statements are based on management's expectations and assumptions and are subject to risks, uncertainties and changes in circumstances. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors. More information about these risks, uncertainties and factors may be found in TSYS' 2008 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K which have been filed with the Securities and Exchange Commission. TSYS does not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

Use of Non-GAAP Financial Measures This slide presentation contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles. Such non-GAAP financial measures include the following: operating margin excluding reimbursable items, revenues and operating income measured on a constant currency basis, free cash flow and EBITDA. The most comparable GAAP measures to these measures are operating margin, revenues, operating income, cash flows from operating activities and net income, respectively. Management uses these non-GAAP financial measures to assess the performance of TSYS' core business. TSYS believes that these non-GAAP financial measures provide meaningful additional information about TSYS to assist investors in evaluating TSYS' operating results. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this slide presentation are set forth in the Appendix to this slide presentation.

Agenda Jim Lipham, Chief Financial Officer Financial Highlights 2010 Guidance Phil Tomlinson, Chairman and CEO Q&A

Jim Lipham Chief Financial Officer

Consolidated Selected Financial Highlights 4Q 09 vs. 4Q 08 09 YTD vs. 08 YTD 1% Total Revenues 2% 0% (Constant Currency Basis) 1% Revenues Before 1% Reimbursable Items 3% 3% (Constant Currency Basis) 0% 3% Operating Income 7% Total Cardholder 4% Transactions 6%

Client Movement Since December 2008 AOF Summary Dec 08 352.5 million Internal growth 25.2 million New clients 28.1 million Purges/Sales (34.1)million Deconversions (26.9)million Dec 09 344.8 million Purges Charming Shoppes Bank of America Compucredit Green Dot Chase Canada Client Adds Home Retail Group Barclay's Bank Deutsche Bank Clients Lost Washington Mutual Nordstrom Portfolio Summary

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3rd Qtr 09 4th Qtr 09 CTA Impact 1.587773 0.687972 -4.61757 -18.779283 -22.582598 -17.778674 -10.33 3.896 CTA Impact Incremental Impact of Currency Translation on Total Revenues (dollars in millions) ($21.12) ($46.79) 1Q 08 2Q 08 1Q 09 2Q 09 3Q 08 4Q 08 3Q 09 4Q 09

North America 4Q 2009 Year Over Year Segment Financial Highlights Revenues of $253.6M Operating income of $57.6M Operating margin of 22.7% Operating margin excluding reimbursable items of 26.9% Same client transactions were 1.57 billion 1.9% Key Drivers ($16.1M) revenues associated with deconverted clients or lost business Focus on expenses - redeploying workforce and utilizing less outside contract labor Maintained operating margin Operating margin excluding reimbursable items decreased 35 basis points Volumes FTEs 4,900 Accounts on file were 305.2M Total cardholder transactions were 1.58 billion 6.6%

4Q 2009 Year Over Year Segment Financial Highlights International Revenues of $101.4M Constant currency basis, revenues were $97.5M Operating income of $18.3M Operating margin of 18.1% Operating margin excluding reimbursable items of 19.0% Same client transactions were 286.8M 2.8% Key Drivers Positive currency impact on revenues of $3.9M Revenue growth of 21% on a constant currency basis One-time nonrecurring deconversion fee Volumes FTEs 1,900 Accounts on file were 39.5M Total cardholder transactions were 317.2M 12.6%

4Q 2009 Year Over Year Segment Financial Highlights Merchant Revenues of $88.0M Operating income of $17.4M Operating margin of 19.7% Operating margin excluding reimbursable items of 29.6% Point-of-sale transactions were 1.3 billion Key Drivers Internal growth increasing revenue by 3% New clients offsetting lost clients Acquisition of Infonox Operating margin increased 24 basis points Operating margin excluding reimbursable items increased 511 basis points Volumes FTEs 800 POS transactions 6.0%

Revenue Change Electronic Payment Processing Services 1% Internal Core Growth (5)% 0% 5% 10% 3% (5)% Reported Change (9%) YTD 2009 vs. YTD 2008 New Clients (10)% Lost Clients (5%) CTA (4%) Total (9%)

Revenue Change Merchant Processing Services 3% Internal Core Growth 4% 8% 12% 16% 1% Reported Change 0% YTD 2009 vs. YTD 2008 New Clients 0% Lost Clients (2%) CTA 1% Other 1% Total 0% 6% 2% Acquisitions

12/31/2007 3/31/2008 6/30/2008 9/30/2008 12/31/2008 3/31/2009 6/30/2009 9/30/2009 12/31/2009 Cash 207.5625 236.7717 253.5411 303.3602 211.3647 271.0428 344.4427 420 450 Cash Balance Since Spin-Off November 08 - Repaid Loan $54 million December 08 - Infonox Purchase $50 million (dollars in millions) Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 117% Dec 09 $450

CASH FLOW MEASURES 12/31/2006 12/31/2007 12/31/2008 12/31/2009 EBITDA 334.861 352.835 423.137 (dollars in millions) 2007 2008 2009 EBITDA OPERATING CASH FLOWS 9/30/2006 12/31/2007 12/31/2008 12/31/2009 EBITDA 501.158 526.967193 497.955227 (dollars in millions) 2007 2008 2009

Cash Flows From Operating Activities, Free Cash Flow and Net Income 9/31/2008 9/30/2009 Sep 09 TTM Cash flow from operations 278.906 333.056 423 Free cash flow 175.202 249.925 302 Net income 183.772 154.999 215 (dollars in millions) 2009 97% > than Net Income 40% > than Net Income TTM = Trailing Twelve Months

TSYS Industry FIS GPN* HPY Operating Cash Flow to revenue 0.298 0.183 0.21 0.193 0.037 TTM = Trailing Twelve Months Cash Flow Comparatives - Operating Cash Flow to Revenue GPN Adjusted for timing of Settlement Assets

2010 Guidance

2010 Guidance - Impact Items Overall No dramatic change in customer business activities Foreign currency exchange rates and LIBOR remain at December 2009 levels Assumes no acquisitions Revenues Client losses and pricing compression New clients Expenses Manage business for long-term Staffing

2010 Revenue Change Revenues Before Reimbursable Items 3%- 4% Lost Business, Non- recurring Items and Price Compression (5)% 0% 5% 10% (6%)-(4%) Guidance (11%) 2010E vs. 2009 New Clients (10)% 1% Currency Internal Growth 1%-2%

2010 Guidance - Impact Items

2010 Guidance A list of the assumptions underlying the 2010 guidance is included in the Appendix.

Jim Lipham Chief Financial Officer

Phil Tomlinson Chairman and Chief Executive Officer

Q&A

Appendix Non-GAAP Reconciliation - Constant Currency

Appendix Non-GAAP Reconciliation - Segment Operating Margin Excluding Reimbursable Items

Appendix Non-GAAP Reconciliation - EBITDA

Appendix Non-GAAP Reconciliation - Free Cash Flow

Appendix List of Assumptions 2010 Guidance The economy will not worsen during 2010; there will be no deconversions of large clients during the year other than as previously announced; there will be no significant movement in foreign currency exchange rates related to TSYS' business during 2010; the anticipated levels in employment, technology and other expenses, which are included in 2010 estimates, will be accomplished; 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; and there will be no significant movements in LIBOR, and no significant draws on the remaining balance of TSYS' revolving credit facility.