Comprehensive Income

6 Months Ended

Jun. 30, 2011

Comprehensive Income

Note 5 — Comprehensive Income

For the three months ended June 30, comprehensive income is summarized below:

	Three months ended June 30, 2011										Three months ended June 30, 2010
(in thousands)	TSYS Shareholders				Noncontrolling Interests		Total				TSYS Shareholders				Noncontrolling Interests			Total
Net income		$	53,747			900		$	54,647			$	49,704			2,774			$	52,478
Other comprehensive income (OCI), net of tax:
Foreign currency translation adjustments			1,110			575			1,685				(3,494	)		(1,979	)			(5,473	)
Change in accumulated OCI related to postretirement healthcare plans			(182	)		–			(182	)			(404	)		–				(404	)
Total		$	54,675			1,475		$	56,150			$	45,806			795			$	46,601

For the six months ended June 30, comprehensive income is summarized below:

	Six months ended June 30, 2011										Six months ended June 30, 2010
(in thousands)	TSYS Shareholders				Noncontrolling Interests		Total				TSYS Shareholders				Noncontrolling Interests			Total
Net income		$	102,537			1,522		$	104,059			$	101,030			3,267			$	104,297
Other comprehensive income (OCI), net of tax:
Foreign currency translation adjustments			11,282			674			11,956				(16,350	)		(104	)			(16,454	)
Change in accumulated OCI related to postretirement healthcare plans			(363	)		–			(363	)			(367	)		–				(367	)
Total		$	113,456			2,196		$	115,652			$	84,313			3,163			$	87,476

The income tax effects allocated to and the cumulative balance of accumulated other comprehensive income (loss) are as follows:

(in thousands)	Beginning  Balance December 31, 2010			Pretax Amount			Tax Effect			Net-of-Tax Amount			Ending  Balance June 30, 2011
Foreign currency translation adjustments	$	(1,242	)		13,579			(2,297	)		11,282			$10,040
Change in accumulated OCI related to postretirement healthcare plans		(1,343	)		(569	)		206			(363	)		(1,706	)
Total	$	(2,585	)		13,010			(2,091	)		10,919			$8,334

Consistent with its overall strategy of pursuing international investment opportunities, TSYS adopted the permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain foreign subsidiaries. Its decision to permanently reinvest foreign earnings offshore means TSYS will no longer allocate taxes to foreign currency translation adjustments associated with these foreign subsidiaries accumulated in other comprehensive income.