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

July 26, 2011
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 July 26, 2011, Total System Services, Inc. (“Registrant”) issued a press release announcing financial results for the second quarter ended June 30, 2011. 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 July 26, 2011, Registrant will hold an investor conference call and webcast to discuss its financial results for the second quarter ended June 30, 2011. 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 July 26, 2011
99.2	Registrant’s presentation dated July 26, 2011

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: July 26, 2011	By:	/s/ Kathleen Moates
		Kathleen Moates
		Senior Deputy General Counsel

3

EX-99.1

Exhibit 99.1

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

For immediate release:

Contact:

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

TSYS Reports Second Quarter 2011 Results

COLUMBUS, Ga., July 26, 2011 — TSYS (NYSE: TSS) today reported results for the second quarter of 2011 with total revenues of $447.6 million, an increase of 3.9% over 2010. Excluding a 2010 termination fee, total revenues were up 6.2%. Basic earnings per share from continuing operations were $0.28, an increase of 10.1% over 2010, and increased 25.4% excluding the 2010 termination fee.

“We continue to see the improvements that we expected in 2011 as evidenced by our year over year quarterly revenue growth with and without the termination fee. Our North America Services segment had an increase in revenues before reimbursable items of 3.2% and operating income growth of 13.0% excluding the 2010 termination fee. In our International Services segment, revenues before reimbursable items increased 14.1% on a constant currency basis as a result of new business and organic growth. Our Merchant Services segment had an increase in revenues before reimbursable items of 1.3% and operating income growth of 10.0%,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.

For the six months ended June 30, 2011, total revenues increased 3.9% over 2010 and were up 8.1% excluding 2010 termination fees. Basic earnings per share from continuing operations were $0.53, a 3.0% increase over 2010, and increased 29.8% excluding 2010 termination fees.

“Our year to date results confirm our confidence in the improving economic conditions and our expectation that we will be successful at achieving our full year guidance for 2011. Since the beginning of 2011, we have deployed approximately $252 million of capital for share repurchases and acquisitions as we continue to invest in our future growth,” said Tomlinson.

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, July 26. 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.

Page 1 of 11

Non-GAAP Measures

This press release and the financial highlights section of this release contain the non-GAAP financial measures of revenues and basic EPS excluding revenues from termination fees and revenues and operating results on a constant currency basis, respectively, 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 pages 10 and 11 of this release.

About TSYS

TSYS (NYSE: TSS) is reshaping a new era in digital commerce, connecting consumers, merchants, financial institutions, businesses and governments. Through unmatched customer service and industry insight, TSYS creates a better experience for buyers and sellers, supporting cross-border payments in more than 85 countries. Offering merchant payment-acceptance solutions as well as services in credit, debit, prepaid, mobile, chip, healthcare, installments, money transfer and more, TSYS makes it possible for those in the global marketplace to conduct safe and secure electronic transactions with trust and convenience.

TSYS’ headquarters are located in Columbus, Georgia, with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS provides services to more than half of the top 20 international banks. For more information, please visit us at www.tsys.com.

Forward-Looking Statements

This press release contains “forward-looking statements” — that is, statements related to future, not past, events. Forward-looking statements often address our expected future business and financial performance and often contain words such as “expect,” “anticipate,” “intend,” “believe,” “should,” “plan,” “will,” “could,” and similar expressions. These forward-looking statements include, among others, statements regarding TSYS’ belief that it will achieve its financial guidance for 2011, and the assumptions underlying such statements. 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: adverse developments with respect to entering into contracts with new clients and retaining current clients; continued consolidation and turmoil in the financial services and other industries during 2011, 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 nationalization or seizure by banking regulators of TSYS clients; TSYS is unable to control expenses and increase market share both domestically and internationally; TSYS is unable to manage the impact of slowing economic conditions and consumer spending; the material breach

Page 2 of 11

of security of any of TSYS’ systems; the impact of potential and completed acquisitions, including the costs associated therewith and their being more difficult to integrate than anticipated; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on TSYS and on our clients; changes occur in laws, rules, regulations, credit card association rules or other industry standards affecting TSYS and our clients that may result in costly new compliance burdens on TSYS and our clients and lead to a decrease in the volume and/or number of transactions processed; the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto; 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 internal 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 risks and other 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 most recent Annual Report on Form 10-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 Second Quarter 2011 Earnings
Page 4 of 11

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

	Three Months Ended									Six Months Ended
	June 30,									June 30,
							Percent									Percent
	2011			2010			Change			2011			2010			Change
Total revenues	$	447,554			430,887			3.9	%	$	876,985			844,350			3.9	%
Cost of services		312,052			295,880			5.5			613,543			586,418			4.6
Selling, general and administrative expenses		56,973			55,178			3.3			111,885			98,391			13.7
Operating income		78,529			79,829			(1.6	)		151,557			159,541			(5.0	)
Nonoperating expenses		(841	)		(1,172	)		28.2			(1,568	)		(1,433	)		(9.4	)
Income from continuing operations before income taxes, noncontrolling interests and equity in income of equity investments		77,688			78,657			(1.2	)		149,989			158,108			(5.1	)
Income taxes		23,658			28,272			(16.3	)		48,815			56,369			(13.4	)
Income from continuing operations before noncontrolling interests and equity in income of equity investments		54,030			50,385			7.2			101,174			101,739			(0.6	)
Equity in income of equity investments		617			2,366			(73.9	)		2,885			3,259			(11.5	)
Income from continuing operations, net of tax		54,647			52,751			3.6			104,059			104,998			(0.9	)
Loss from discontinued operations, net of tax		—			(273	)	nm				—			(701	)	nm
Net income		54,647			52,478			4.1			104,059			104,297			(0.2	)
Net income attributable to noncontrolling interests		(900	)		(2,774	)		67.6			(1,522	)		(3,267	)		53.4
Net income attributable to TSYS common shareholders	$	53,747			49,704			8.1	%	$	102,537			101,030			1.5	%
Basic earnings per share:
Income from continuing operations to TSYS common shareholders	$	0.28			0.25			10.1	%	$	0.53			0.52			3.0	%
Loss from discontinued operations to TSYS common shareholders		—			(0.00	)	nm				—			(0.00	)	nm
Net income attributable to TSYS common shareholders	$	0.28			0.25			10.8	%	$	0.53			0.51			3.7	%
Diluted earnings per share:
Income from continuing operations to TSYS common shareholders	$	0.28			0.25			10.0	%	$	0.53			0.52			2.8	%
Loss from discontinued operations to TSYS common shareholders		—			(0.00	)	nm				—			(0.00	)	nm
Net income attributable to TSYS common shareholders	$	0.28			0.25			10.5	%	$	0.53			0.51			3.5	%
Dividends declared per share	$	0.07			0.07					$	0.14			0.14
Amounts attributable to TSYS common shareholders:
Income from continuing operations, net of tax	$	53,747			49,977			7.5	%	$	102,537			101,731			0.8	%
(Loss) income from discontinued operations, net of tax		—			(273	)	nm				—			(701	)	nm
Net income	$	53,747			49,704			8.1	%	$	102,537			101,030			1.5	%

nm = not meaningful

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TSYS Announces Second Quarter 2011 Earnings
Page 5 of 11

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

	Three Months Ended					Three Months Ended					Six Months Ended					Six Months Ended
	June 30, 2011					June 30, 2010					June 30, 2011					June 30, 2010
	Common			Participating		Common			Participating		Common			Participating		Common			Participating
	Stock			Securities		Stock			Securities		Stock			Securities		Stock			Securities
Basic Earnings per share:
Net income	$	53,747					49,704				$	102,537					101,030
Less income allocated to nonvested awards		(191	)		191		(250	)		250		(383	)		383		(514	)		514
Net income allocated to common stock for EPS calculation ( a )	$	53,556			191		49,454			250	$	102,154			383		100,516			514
Average common shares outstanding ( b )		191,935			690		196,346			998		192,390			727		196,253			1,007
Average common shares and participating securities		192,625					197,344					193,117					197,260
Basic Earnings per share ( a )/( b )	$	0.28			0.28		0.25			0.25	$	0.53			0.53		0.51			0.51
Diluted Earnings per share:
Net income	$	53,747					49,704				$	102,537					101,030
Less income allocated to nonvested awards		(190	)		190		(250	)		250		(382	)		382		(514	)		514
Net income allocated to common stock for EPS calculation ( c )	$	53,557			190		49,454			250	$	102,155			382		100,516			514
Average common shares outstanding		191,935			690		196,346			998		192,390			727		196,253			1,007
Increase due to assumed issuance of shares related to common equivalent shares outstanding		459					85					366					87
Average common and common equivalent shares outstanding ( d )		192,394			690		196,431			998		192,756			727		196,340			1,007
Average common and common equivalent shares and participating securities		193,084					197,429					193,483					197,347
Diluted Earnings per share ( c )/( d )	$	0.28			0.28		0.25			0.25	$	0.53			0.53		0.51			0.51

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TSYS Announces Second Quarter 2011 Earnings
Page 6 of 11

TSYS
Segment Breakdown
(unaudited)
(in thousands)

	Three Months Ended June 30,												Six Months Ended June 30,
							Change												Change
	2011			2010			$			%			2011			2010			$			%
Revenues before reimbursable items
North America Services	$	198,775			202,061			(3,286	)		(1.6)	%		393,365			417,371			(24,006	)		(5.8	)%
International Services		93,778			74,769			19,009			25.4	%		181,198			151,050			30,148			20.0	%
Merchant Services		93,041			91,889			1,152			1.3	%		179,560			148,661			30,899			20.8	%
Intersegment revenues		(5,383	)		(5,980	)		597			10.0	%		(11,269	)		(11,682	)		413			3.5	%
Revenues before reimbursable items from external customers	$	380,211			362,739			17,472			4.8	%		742,854			705,400			37,454			5.3	%
Total revenues
North America Services	$	233,903			236,810			(2,907	)		(1.2)	%		464,461			491,038			(26,577	)		(5.4	)%
International Services		97,670			77,987			19,683			25.2	%		188,380			157,379			31,001			19.7	%
Merchant Services		123,084			123,906			(822	)		(0.7)	%		238,840			211,225			27,615			13.1	%
Intersegment revenues		(7,103	)		(7,816	)		713			9.1	%		(14,696	)		(15,292	)		596			3.9	%
Revenues from external customers	$	447,554			430,887			16,667			3.9	%		876,985			844,350			32,635			3.9	%
Depreciation and amortization
North America Services	$	19,926			18,891			1,035			5.5	%		39,392			39,294			98			0.2	%
International Services		11,960			8,597			3,363			39.1	%		23,668			17,192			6,476			37.7	%
Merchant Services		9,313			12,253			(2,940	)		(24.0)	%		18,460			20,791			(2,331	)		(11.2	)%
Corporate Admin		768			611			157			25.7	%		1,515			1,593			(78	)		(4.9	)%
Total depreciation and amortization	$	41,967			40,352			1,615			4.0	%		83,035			78,870			4,165			5.3	%
Segment operating income
North America Services	$	64,068			66,218			(2,150	)		(3.2)	%		119,268			136,006			(16,738	)		(12.3	)%
International Services		10,122			11,673			(1,551	)		(13.3)	%		21,147			22,956			(1,809	)		(7.9	)%
Merchant Services		25,708			23,367			2,341			10.0	%		52,631			41,223			11,408			27.7	%
Corporate Admin		(21,369	)		(21,429	)		60			0.3	%		(41,489	)		(40,644	)		(845	)		(2.1	)%
Operating income	$	78,529			79,829			(1,300	)		(1.6)	%		151,557			159,541			(7,984	)		(5.0	)%
Other:
Reimbursable items:
North America Services	$	35,128			34,749			379			1.1	%		71,096			73,667			(2,571	)		(3.5	)%
International Services		3,892			3,218			674			20.9	%		7,183			6,329			854			13.5	%
Merchant Services		30,043			32,017			(1,974	)		(6.2)	%		59,280			62,563			(3,283	)		(5.2	)%
Intersegment revenues		(1,719	)		(1,836	)		117			6.4	%		(3,428	)		(3,609	)		181			5.0	%
Reimbursable items	$	67,344			68,148			(804	)		(1.2)	%		134,131			138,950			(4,819	)		(3.5	)%
Volumes:
FTEs (continuing operations)
North America Services														4,327			4,433			(106	)		(2.4	)%
International Services														2,217			1,921			296			15.4	%
Merchant Services														1,185			1,096			89			8.1	%
Corporate Admin														380			330			50			15.2	%
FTEs														8,109			7,780			329			4.2	%
													At						Change
Total assets (in thousands)														6/30/2011			12/31/2010		$				%
North America Services														1,605,973			1,632,882			(26,909	)		(1.6	)%
International Services														434,458			408,880			25,578			6.3	%
Merchant Services														492,929			460,750			32,179			7.0	%
Intersegment assets														(701,082	)		(550,251	)		(150,831	)		(27.4	)%
Total assets														1,832,278			1,952,261			(119,983	)		(6.1	)%

	Three Months Ended June 30,										Six Months Ended June 30,
					Change										Change
	2011		2010		Inc(Dec)			%			2011		2010		Inc(Dec)			%
North America Segment:
Accounts on File (AOF) (in millions)												328.3		290.7		37.6			12.9	%
Transactions (in millions)		1,795.1		1,563.7		231.4			14.8	%		3,421.9		3,021.9		400.0			13.2	%
International Segment:
AOF (in millions)												47.8		42.1		5.6			13.4	%
Transactions (in millions)		340.6		297.9		42.8			14.4	%		666.6		579.1		87.5			15.1	%
Merchant Segment:
Point-of-sale Transactions (in millions)		1,269.0		1,420.5		(151.5	)		(10.7	)%		2,475.8		2,734.8		(258.9	)		(9.5)	%

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TSYS Announces Second Quarter 2011 Earnings
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TSYS
Balance Sheet
(in thousands)

	Jun 30, 2011			Dec 31, 2010
	(unaudited)			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	263,334			394,795
Restricted cash		18			434
Accounts receivable, net		226,327			238,283
Deferred income tax assets		12,090			11,090
Prepaid expenses and other current assets		85,892			77,211
Total current assets		587,661			721,813
Property and equipment, net		293,637			300,102
Computer software, net		228,521			246,424
Contract acquisition costs, net		167,450			166,251
Goodwill		357,151			320,399
Equity investments, net		81,951			77,127
Other intangible assets, net		85,596			83,118
Other assets		30,311			37,027
Total assets	$	1,832,278			1,952,261
Liabilities
Current liabilities:
Current portion of notes payable	$	38,813			39,557
Accrued salaries and employee benefits		19,457			27,414
Accounts payable		29,189			36,068
Current portion of obligations under capital leases		13,293			13,191
Other current liabilities		128,452			111,040
Total current liabilities		229,204			227,270
Notes payable, excluding current portion		188,102			194,703
Deferred income tax liabilities		189			42,547
Obligations under capital leases, excluding current portion		25,913			30,573
Other long-term liabilities		60,212			53,363
Total liabilities		503,620			548,456
Redeemable noncontrolling interest		—			146,000
Equity
Shareholders’ equity:
Common stock		20,140			20,133
Additional paid-in capital		136,072			119,722
Accumulated other comprehensive income, net		8,334			(2,585	)
Treasury stock		(149,194	)		(115,449	)
Retained earnings		1,294,877			1,219,303
Total shareholders’ equity		1,310,229			1,241,124
Noncontrolling interests in consolidated subsidiaries		18,429			16,681
Total equity		1,328,658			1,257,805
Total liabilities and equity	$	1,832,278			1,952,261

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TSYS Announces Second Quarter 2011 Earnings
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TSYS
Cash Flow
(unaudited)
(in thousands)

	Six Months Ended June 30,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	104,059			104,297
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of equity investments		(2,885	)		(3,259	)
Dividends received from equity investments		13			2,698
Net loss (gain) on currency translation adjustments		574			136
Depreciation and amortization		83,035			78,966
Amortization of debt issuance costs		77			77
Share-based compensation		8,644			7,956
Excess tax benefit from share-based payment arrangements		(54	)		(111	)
Asset impairments		1,298			—
Provisions for (recoveries of) bad debt expense and billing adjustments		873			(366	)
Charges for transaction processing provisions		2,632			2,109
Deferred income tax expense (benefit)		(9,738	)		7,754
(Gain) loss on disposal of equipment, net		(1,429	)		11
Gain on disposal of subsidiary		—			(131	)
Changes in operating assets and liabilities:
Accounts receivable		19,410			(2,698	)
Prepaid expenses, other current assets and other long-term assets		4,508			(25,383	)
Accounts payable		(13,239	)		27,276
Accrued salaries and employee benefits		(11,489	)		(14,031	)
Other current liabilities and other long-term liabilities		13,005			10,407
Net cash provided by operating activities		199,294			195,708
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net		(12,543	)		(17,189	)
Additions to licensed computer software from vendors		(5,882	)		(20,812	)
Additions to internally developed computer software		(9,242	)		(9,406	)
Proceeds from sale of tradename		4,500			—
Cash used in acquisitions, net of cash acquired		(45,287	)		(148,531	)
Additions to contract acquisition costs		(16,007	)		(19,888	)
Net cash used in investing activities		(84,461	)		(215,826	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt borrowings and capital lease obligations		(14,494	)		(7,858	)
Proceeds from exercise of stock options		1,339			378
Excess tax benefit from share-based payment arrangements		54			111
Repurchase of common stock		(35,700	)		(1,075	)
Purchase of noncontrolling interests		(174,050	)		—
Subsidiary dividends paid to noncontrolling shareholders		(448	)		(250	)
Dividends paid on common stock		(27,129	)		(27,605	)
Net cash used in financing activities		(250,428	)		(36,299	)
CASH AND CASH EQUIVALENTS:
Effect of exchange rate changes on cash and cash equivalents		4,134			(5,545	)
Net increase (decrease) in cash and cash equivalents		(131,461	)		(61,962	)
Cash and cash equivalents at beginning of period		394,795			449,955
Cash and cash equivalents at end of period	$	263,334			387,993

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TSYS Announces Second Quarter 2011 Earnings
Page 9 of 11

Supplemental Information:

	Accounts on File
	Total
	June		June		%
(in millions)	2011		2010		Change
Consumer Credit		187.6		180.9		3.7
Government Services		30.0		27.0		11.3
Retail		23.7		23.6		0.4
Total Consumer		241.3		231.5		4.2
Commercial		55.2		48.2		14.7
Other		6.7		5.5		20.1
Subtotal		303.2		285.2		6.3
Prepaid/Stored Value		72.8		47.6		53.1
Total AOF		376.0		332.8		13.0

Growth in Accounts on File (in millions):

	June 2010 to			June 2009 to
	June 2011			June 2010
Beginning balance		332.8			349.5
Change in accounts on file due to:
Internal growth of existing clients		26.3			22.5
New clients		33.0			31.4
Purges/Sales		(14.7	)		(41.2	)
Deconversions		(1.4	)		(29.4	)
Ending balance		376.0			332.8

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TSYS Announces Second Quarter 2011 Earnings
Page 10 of 11

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 year-to-date 2011 financial results using the previous year’s foreign currency exchange rates. On a year-to-date constant currency basis, TSYS’ total revenues grew 3.9% as compared to a reported GAAP increase of 2.4%. The schedule below also provides a reconciliation of revenues and basic EPS excluding revenues from termination fees.

The non-GAAP financial measures of constant currency and revenues and basic EPS excluding revenues from termination fees, with respect to year to date revenues and basic EPS 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 Second Quarter 2011 Earnings
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Reconciliation of GAAP to Non-GAAP

Constant Currency Comparison
(unaudited)
(in thousands)

	Three Months Ended June 30,							Six Months Ended June 30,
					Percent							Percent
	2011		2010		Change			2011		2010		Change
Consolidated
Constant currency (1)	$	438,806		430,887		1.8	%	$	864,801		844,350		2.4	%
Foreign currency (2)		8,748		—					12,184		—
Total revenues	$	447,554		430,887		3.9	%	$	876,985		844,350		3.9	%
Constant currency (1)	$	77,793		79,829		(2.6)	%	$	150,029		159,541		(6.0)	%
Foreign currency (2)		736		—					1,528		—
Operating income	$	78,529		79,829		(1.6)	%	$	151,557		159,541		(5.0)	%
International Services
Constant currency (1)	$	85,335		74,769		14.1	%
Foreign currency (2)		8,443		—
Total revenues before reimbursable items	$	93,778		74,769		25.4	%

(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.

Revenue and BASIC EPS Excluding Termination Fees
(unaudited)
(in thousands except per share data)

	Three Months Ended June 30,							Six Months Ended June 30,
					Percent							Percent
	2011		2010		Change			2011		2010		Change
Consolidated
Total Revenues	$	447,554		430,887		3.9	%	$	876,985		844,350		3.9	%
Less:
Termination Fees		—		9,528					—		32,667
Total revenues excluding termination fees	$	447,554		421,359		6.2	%	$	876,985		811,683		8.0	%
Income from continuing operations, net of tax, available to TSYS common shareholders	$	53,747		49,977		7.5	%	$	102,537		101,731		0.8	%
Less:
Termination Fees, net of tax		—		6,085					—		21,011
Income from continuing operations, net of tax, available to TSYS common shareholders, excluding termination fees	$	53,747		43,892		22.5	%	$	102,537		80,720		27.0	%
Average common shares and participating securities		192,625		197,344					193,117		197,260
BASIC EPS — Income from continuing operations, net of tax, available to TSYS common shareholders	$	0.28		0.25		10.1	%	$	0.53		0.52		3.0	%
Less:
Termination Fees, net of tax		—		0.03					—		0.11
BASIC EPS — Income from continuing operations, net of tax, excluding termination fees available to TSYS common shareholders	$	0.28		0.22		25.4	%	$	0.53		0.41		29.8	%

Note: Earnings per share may not foot due to rounding.

- ### -

EX-99.2

Exhibit 99.2

2011 Second Quarter Results July 26, 2011

Forward-Looking Statements This presentation and comments made by management contain forward-looking statements including, among others, statements regarding the expected future operating results of TSYS. These statements are based on management's current expectations and assumptions and are subject to risks, uncertainties and changes in circumstances. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward- looking terminology such as the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. 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' 2010 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. TSYS does not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise. 2 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

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: revenues before reimbursable items; operating margin excluding reimbursable items; revenues measured on a constant currency basis; the impact of termination fees on total revenues, operating income, income from continuing operations, and earnings per share from continuing operations; free cash flow; and EBITDA. The most comparable GAAP measures to these measures are revenues; operating margin; revenues; revenues, operating income, income from continuing operations and earnings per share from continuing operations; 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. 3 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Phil Tomlinson Chairman and Chief Executive Officer

Jim Lipham Chief Financial Officer

Consolidated Selected Financial Highlights 6 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. $ 447,554 $ 430,887 3.9 % Total Revenues $ 876,985 $ 844,350 3.9 % 380,211 362,739 4.8 Revenues Before Reimbursable Items 742,854 705,400 5.3 78,529 79,829 (1.6 ) Operating Income 151,557 159,541 (5.0 ) 53,747 49,977 7.5 Income from Continuing Operations Available to TSYS Common Shareholders 102,537 101,731 0.8 2,135.7 1,861.5 14.7 Total Cardholder Transactions (in millions) 4,088.5 3,601.0 13.5 $0.28 $0.25 10.1 Earnings Per Share from Continuing Operations Attributable to TSYS Common Shareholders $0.53 $0.52 3.0 YTD 2011 YTD 2010 Percent Change (in thousands except per share data) 2nd Qtr 2011 2nd Qtr 2010 Percent Change

Consolidated Selected Financial Highlights 7 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. $ 447,554 $ 421,359 6.2 % Total Revenues $ 876,985 $ 811,683 8.0 % 380,211 353,211 7.6 Revenues Before Reimbursable Items 742,854 672,733 10.4 78,529 70,301 11.7 Operating Income 151,557 126,874 19.5 53,747 43,892 22.5 Income from Continuing Operations Available to TSYS Common Shareholders 102,537 80,720 27.0 2,135.7 1,861.5 14.7 Total Cardholder Transactions (in millions) 4,088.5 3,601.0 13.5 $0.28 $0.22 25.4 Earnings Per Share from Continuing Operations Attributable to TSYS Common Shareholders $0.53 $0.41 29.8 YTD 2011 YTD 2010 Percent Change (in thousands except per share data) 2nd Qtr 2011 2nd Qtr 2010 Percent Change Excluding Termination Fees (non-GAAP) Excluding Termination Fees (non-GAAP)

2011 YTD Revenue Change Revenues Before Reimbursable Items 8 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. 10% 25% 5% 0% 3.4% Internal Growth New Clients 3.7% Acquisitions 4.8% Lost Business, Non-recurring Items and Price Compression (8.3%) Reported 5.3% Currency 20% 15% 1.7%

Consolidated Accounts on File Portfolio Summary Consumer Credit 187.6 180.9 3.7 187.6 183.4 2.3 Government Services 30.0 27.0 11.3 30.0 29.0 3.6 Retail 23.7 23.6 0.4 23.7 24.6 (3.5 ) Total Consumer 241.3 231.5 4.2 241.3 237.0 1.8 Commercial 55.2 48.2 14.7 55.2 51.1 8.1 Other 6.7 5.5 20.1 6.7 6.3 5.6 Subtotal 303.2 285.2 6.3 303.2 294.4 3.0 Prepaid /Stored Value 72.8 47.6 53.1 72.8 62.3 16.9 Total AOF 376.0 332.8 13.0 376.0 356.7 5.4 (in millions) June 2011 June 2010 % Change June 2011 March 2011 % Change 9 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Key Drivers 2Q 2011 Year Over Year Segment Financial Highlights Client deconversion and termination fees $9.5 million in 2Q 2010 revenues associated with termination fees $3.7 million revenue decrease associated with deconverted clients Volumes Accounts on file were 328.3 million Total cardholder transactions were 1,795.1 million, an increase of 14.8% Revenues $233.9 million Excluding Reimbursables $198.8 million Operating Income $64.1 million Operating Margin 27.4% Excluding Reimbursables 32.2% Same Client Transactions 1,757.5 million Increase of 12.7% North America Services 10 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Key Drivers 2Q 2011 Year Over Year Segment Financial Highlights Favorable currency impact on revenues of $8.8 million Conversion of new clients Volumes Accounts on file were 47.8 million Total cardholder transactions were 340.6 million, an increase of 14.4% 11 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. Revenues $97.7 million Constant currency basis $88.9 million Operating Income $10.1 million Operating Margin 10.4% Excluding Reimbursables 10.8% Same Client Transactions 314.7 million Increase of 5.7% International Services

Key Drivers 2Q 2011 Year Over Year Segment Financial Highlights Acquisition of TermNet Decline in revenues associated with deconverted clients Volumes Point-of-Sale Transactions were 1,269.0 million, a decrease of 10.7% Excluding deconverted clients, Point-of-Sale Transactions increased 2.8% 12 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. Revenues $123.1 million Excluding Reimbursables $93.0 million Operating Income $25.7 million Operating Margin 20.9% Excluding Reimbursables 27.6% Merchant Services

Cash Flow Strength: 2011 TTM Consolidated Financial Highlights (in millions) TTM = Trailing Twelve Months 13 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Strategic Fit Growth Accretion Comparison Multiples Capital Structure Other TSYS M&A Financial Objectives Components Measurements 14 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide. Payment industry Culture Geographic region Product Focus within the payment industry Culture fit with TSYS Leverage platform scale in new geographic areas Expand product offering Revenue EBITDA Margin Expansion Revenue growth of target improves TSYS' growth EBITDA growth of target improves TSYS' growth Achieve greater scale/higher margins Evaluate historical performance Cash GAAP Must generate cash accretion Should generate GAAP accretion in near term (Primary difference between cash is deal amortization) EV/EBITDA Price/Sales P/E Target's valuation compared to peers using various metrics Premium in-line with performance vs. peers Evaluate consolidated proforma metrics Remain investment grade Leverage no more than 2.5-3.0x Willing to leverage up for short period but would aggressively pay down leverage Historical leverage well below 1.0x Maintain flexibility through reasonable leverage Discounted Cash Flows Asset valuation Debt and equity obligations Target's returns in excess of WACC Goodwill/intangibles valuation Ensure TSYS standalone cash flow fulfills interest expense and dividend payments

Appendix

Appendix Non-GAAP Reconciliation - Revenues Before Reimbursable Items Three Months Ended Six Months Ended 6/30/11 6/30/10 6/30/11 6/30/10 Total Revenues $ 447,554 $ 430,887 $ 876,985 $ 844,350 Reimbursable Items 67,343 68,148 134,131 138,950 Revenues Before Reimbursable Items $ 380,211 $ 362,739 $ 742,854 $ 705,400 (in thousands) 16 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Three Months Ended 6/30/11 6/30/10 Three Months Ended 6/30/11 6/30/10 Three Months Ended 6/30/11 6/30/10 Operating Income (a) $ 64,068 $ 66,218 $ 10,122 $ 11,673 $ 25,708 $ 23,367 Total Revenues (b) 233,903 236,810 97,670 77,987 123,084 123,906 Reimbursable Items 35,128 34,749 3,892 3,218 30,043 32,017 Revenues Before Reimbursable Items(c) 198,775 202,061 93,778 74,769 93,041 91,889 Operating Margin (a)/(b) 27.39 % 27.96 % 10.36 % 14.97 % 20.89 % 18.86 % Operating Margin Excluding Reimbursables (a)/(c) 32.23 % 32.77 % 10.79 % 15.61 % 27.63 % 25.43 % Segment Operating Income - Termination Fees (d) $9,528 Operating Income Excluding Termination Fees (e) 56,690 Termination fees (f) 9,528 Revenues before reimbursable items excluding Termination Fees (g) 192,533 Operating margin excluding reimbursables (e)/(g) 29.44 % Appendix Non-GAAP Reconciliation - Segment Operating Margin Excluding Reimbursable Items North America International Merchant (in thousands) 17 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Six Months Ended June 30, 2010 Three Months Ended June 30, 2010 GAAP Less Termination Fees Non-GAAP GAAP Less Termination Fees Non-GAAP Total Revenues $430,887 9,528 $421,359 $844,350 32,667 $811,683 Less Reimbursable Items $68,148 --- $68,148 $138,950 --- $138,950 Revenues Before Reimbursable Items $362,739 9,528 $353,211 $705,400 32,667 $627,733 Operating Income $79,829 9,528 $70,301 $159,541 32,667 $126,874 Income from Continuing Operations Available to TSYSCommon Shareholders $49,977 6,085 $43,892 $101,731 21,011 $80,720 Average Common Shares and Participating Securities 197,344 197,344 197,344 197,260 197,260 197,260 Earnings Per Share Available to TSYS Common Shareholders* $0.25 0.03 $0.22 $0.52 0.11 $0.41 Appendix Non-GAAP Reconciliation - Excluding Termination Fees (in thousands) NOTE: Earnings per share may not foot due to rounding. 18 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Six Months Ended 6/30/11 6/30/10 Percentage Change Three Months Ended 6/30/11 6/30/10 Percentage Change Appendix Non-GAAP Reconciliation - Constant Currency (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. (in thousands) Consolidated: Constant Currency (1) $ 438,806 $ 430,887 1.8 % $ 864,801 $ 844,350 2.4 % Foreign Currency (2) 8,748 --- 12,184 --- Total Revenues 447,554 430,887 3.9 % 876,985 844,350 3.9 % International Services: Constant Currency (1) $ 88,901 $ 77,987 14.0 % $ 176,163 $ 157,379 11.9 % Foreign Currency (2) 8,769 --- 12,217 --- Total Revenues $97,670 $77,987 25.2 % $188,380 $157,379 19.7 % 19 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Appendix Non-GAAP Reconciliation - EBITDA Trailing Twelve Months Ended 6/30/2011 Net Income $ 205,383 Adjusted for: Add: Discontinued Operations 2,544 Deduct: Equity in Income of Equity Investments (6,768 ) Add: Income Taxes 98,534 Add: Nonoperating expense 1,752 Add: Depreciation and Amortization 167,092 EBITDA $ 468,537 (in thousands) 20 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.

Appendix Non-GAAP Reconciliation - Free Cash Flow Trailing Twelve Months Ended 6/30/2011 Cash Flows from Operating Activities $ 392,746 Less: Purchase of Property and Equipment (41,901 ) Additions to Licensed Computer Software from Vendors (54,896 ) Additions to Internally Developed Computer Software (25,302 ) Additions to Contract Acquisition Costs (71,788 ) Free Cash Flow $ 198,859 (in thousands) 21 (c)2011 Total System Services, Inc.(r) Proprietary. All rights reserved worldwide.