10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

for the fiscal year ended December 31, 2011

Commission file number 1-10254

TOTAL SYSTEM SERVICES, INC.

(Exact name of registrant as specified in its charter)

Georgia	58-1493818
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One TSYS Way Columbus, Georgia	31901
(Address of principal executive offices)	(Zip Code)

(Registrant’s telephone number, including area code) (706) 649-2310

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $.10 Par Value	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    YES  x    NO  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    YES  ¨    NO  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.    YES  x    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated Filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  x

As of June 30, 2011, the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was approximately $3,442,506,000 based on the closing sale price as reported on the New York Stock Exchange.

As of February 21, 2012, there were 188,880,349 shares of the registrant’s common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Incorporated Documents	Form 10-K Reference Locations
Portions of the Annual Report to Shareholders for the year ended December 31, 2011 (“Annual Report”)	Parts I, II, III and IV
Portions of the 2012 Proxy Statement for the Annual Meeting of Shareholders to be held May 1, 2012 (“Proxy Statement”)	Part III

Table of Contents

		Page
Part I
Safe Harbor Statement			1
Item 1.	Business		1
Item 1A.	Risk Factors		5
Item 1B.	Unresolved Staff Comments		12
Item 2.	Properties		12
Item 3.	Legal Proceedings		12
Item 4.	Mine Safety Disclosures		12
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		12
Item 6.	Selected Financial Data		13
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		13
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		13
Item 8.	Financial Statements and Supplementary Data		15
Item 9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure		15
Item 9A.	Controls and Procedures		15
Item 9B.	Other Information		16
Part III
Item 10.	Directors, Executive Officers and Corporate Governance		16
Item 11.	Executive Compensation		17
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		17
Item 13.	Certain Relationships and Related Transactions, and Director Independence		17
Item 14.	Principal Accountant Fees and Services		17
Part IV
Item 15.	Exhibits and Financial Statement Schedules		18

PART I

Safe Harbor Statement

We have included or incorporated by reference in this Annual Report on Form 10-K, and from time to time our management may make, statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which by their nature are inherently uncertain and outside our control. These statements include statements other than historical information or statements of current condition and may relate to our future plans, objectives and results, among other things, and also include (without limitation) statements made in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this annual report. It is possible that our actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Important factors that could cause actual results to differ from those in the forward-looking statements include, among others, those discussed under “Risk Factors” in Part I, Item 1A of this annual report and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this annual report.

Accordingly, you are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements to reflect the impact of circumstances or events that arise after the dates they are made, whether as a result of new information, future events or otherwise except as required by applicable law. You should, however, consult further disclosures we may make in future filings of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments thereto.

Item 1. Business

Business. Based in Columbus, Georgia, and traded on the New York Stock Exchange under the symbol “TSS,” we are a global payment solutions provider that provides services to financial and nonfinancial institutions. The services we provide are divided into three operating segments, North America Services, which accounted for 51.4% of our revenues in 2011, International Services, which accounted for 21.6% of our revenues in 2011, and Merchant Services, which accounted for 27.0% of our revenues in 2011.

Seasonality. Due to the somewhat seasonal nature of the credit card industry, our revenues and results of operations have generally increased in the fourth quarter of each year because of increased transaction and authorization volumes during the traditional holiday shopping season.

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Intellectual Property. Our intellectual property portfolio is a component of our ability to be a leading electronic payment services provider. We diligently protect and work to build our intellectual property rights through patent, servicemark and trade secret laws. We also use various licensed intellectual property to conduct our business. In addition to using our intellectual property in our own operations, we grant licenses to certain of our clients to use our intellectual property.

Major Customer. A significant amount of our revenues is derived from long-term contracts with large clients, including our major customer during 2011, Bank of America Corporation. For the year ended December 31, 2011, Bank of America Corporation accounted for approximately 11.7% of our total revenues. As a result, the loss of Bank of America Corporation, or other large clients, could have a material adverse effect on our financial position, results of operations and cash flows. See “Major Customer” and “Operating Segments” under the “Financial Review” Section on page 20, and 20 through 23, respectively, and Note 22 on pages 61 through 63 of the Annual Report which are incorporated in this document by reference.

Competition. We encounter vigorous competition in providing electronic payment services from several different sources. TSYS’ core business is derived from third-party processing for issuers and merchant acquirers. Most of the national market in third party processors is presently being provided by approximately three vendors. We believe that as of December 31, 2011 we are the largest third party card processor in the United States. In addition, we compete with banks and acquirers who choose to process payments in house through proprietary systems and with software vendors which provide their products to institutions which process in house. We are presently encountering, and in the future anticipate continuing to encounter, substantial competition from data processing, bankcard computer service firms and third-party software vendors within the United States and from certain international processors, in-country providers and third-party software vendors with respect to our International Services segment. In addition, payments networks such as Visa, MasterCard and Discover are increasingly offering products and services that compete with our products and services.

Based upon available market share data that includes cards processed in house, we believe that during 2011 we provided issuer processing services for 18% of the domestic consumer credit card accounts in market, 51% of the domestic commercial credit card accounts in market, 66% of the Canadian credit card accounts in market and 16% of the Western European credit card accounts in market. With respect to the Merchant Services Segment, we provide third party processing services to merchant acquirers and Independent Sales Organizations (“ISOs”) and we are a direct merchant acquirer through TSYS Merchant Solutions. We believe that we are the second largest processor of merchant accounts and process transactions for approximately 19% of all bankcard accepting merchant locations in the United States. Our direct merchant acquirer business is ranked as the 10^th largest merchant acquirer by dollar volume according to The Nilson Report dated March 2011.

Our major competitor in the card processing industry is First Data Resources, LLC, a wholly owned subsidiary of First Data Corporation, which provides card processing services. The principal methods of competition between us and First Data Resources are price, system performance and reliability, breadth of features and functionality, disaster recovery capabilities

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and business continuity preparedness, data security, scalability and flexibility of infrastructure and servicing capability. Other affiliates of First Data Corporation also compete with us with respect to the provision of merchant services.

Backlog of Accounts. As of December 31, 2011, we had a pipeline of approximately 26 million net accounts which are expected to be converted by August 2013.

Regulation and Examination. Government regulation affects key aspects of our business, in the U.S. as well as internationally. We are subject to examination by the Federal Financial Institutions Examination Council, an interagency body comprised primarily of federal banking regulators, and also subject to examination by the various state financial regulatory agencies which supervise and regulate the financial institutions for which we provide electronic payment processing services. Matters reviewed and examined by these federal and state financial institution regulatory agencies have included our internal controls in connection with our present performance of electronic payment processing services, and the agreements pursuant to which we provide such services. In addition, we are registered with Visa, MasterCard, American Express and the Discover Network as a service provider and are subject to their respective rules.

Aspects of our business are also subject to privacy regulation in the United States, the European Union and elsewhere. For example, in the United States, we and our financial institution clients are respectively subject to the Federal Trade Commission’s and the federal banking agency information safeguarding requirements under the Gramm-Leach-Bliley Act. The Federal Trade Commission’s information safeguarding rules require us to develop, implement and maintain a written, comprehensive information security program containing safeguards that are appropriate for our size and complexity, the nature and scope of our activities and the sensitivity of any customer information at issue. Our financial institution clients in the United States are subject to similar requirements under the guidelines issued by the federal banking agencies. As part of their compliance with these requirements, each of our U.S. financial institution clients is expected to have a program in place for responding to unauthorized access to, or use of, customer information that could result in substantial harm or inconvenience to customers.

As are all U.S. citizens and U.S. entities, we are subject to regulations imposed by the U.S. Treasury Office Department of Foreign Assets Control (“OFAC”) which prohibit or restrict financial and other transactions with specified countries, and designated individuals and entities such as terrorists and narcotics traffickers. We have procedures and controls in place which are designed to protect against having direct business dealings with such prohibited countries, individuals or entities. We also have procedures and controls in place which are designed to allow our processing clients to protect against having direct business dealings with such prohibited countries, individuals or entities. However, due to the complexity of the payments systems to which our clients belong, such as MasterCard and Visa, it is possible our computer systems may be used in the processing of transactions involving countries or parties subject to OFAC administered sanctions.

We and the rest of the financial services industry continue to experience increased legislative and regulatory scrutiny, including the enactment of additional legislative and regulatory initiatives such as the Dodd-Frank Wall Street Reform and Consumer Protection Act

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(the “Reform Act”). This legislation, which provides for significant financial regulatory reform, may have a significant and negative impact on our clients, which could impact TSYS’ earnings through fee reductions, higher costs (both regulatory and implementation) and new restrictions on our operations. The Reform Act, among other things, provides for the regulation and oversight by the Federal Reserve Board of debit interchange fees that are typically paid by acquirers and charged or received by a payment card network for the purpose of compensating an issuer for its involvement in an electronic debit transaction. As of October 1, 2011, in accordance with the Reform Act, the Federal Reserve Board capped the maximum U.S. debit interchange fee assessed for cards issued by large financial institutions at twenty-one cents plus five basis points, before applying an interim fraud adjustment up to an additional one cent. Although we cannot predict the impact that the debit interchange regulations will ultimately have on us, we do not expect that they will have a significant negative impact on our business.

The Reform Act also created a new Consumer Financial Protection Bureau with responsibility for most federal consumer protection laws in the area of financial services, including consumer credit. The bureau’s future actions may make payment card transactions less attractive to card issuers, including TSYS’ clients, and thus negatively impact our business. In addition, the Reform Act created a Financial Stability Oversight Council that has the authority to determine whether nonbank financial companies such as TSYS should be supervised by the Federal Reserve Board because they are systemically important to the U.S. financial system. Any such designation would result in increased regulatory burdens on our business.

Employees. As of December 31, 2011, we had approximately 8,200 employees.

Available Information. Our website address is www.tsys.com. You may obtain free electronic copies of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports in the Investor Relations section of our website under the heading “SEC Filings.” These reports are available on our website as soon as reasonably practicable after we electronically file them with the Securities and Exchange Commission.

We have adopted a Code of Business Conduct and Ethics for our directors, officers and employees and have also adopted Corporate Governance Guidelines. Our Code of Business Conduct and Ethics, Corporate Governance Guidelines and the charters of our board committees are available in the Corporate Governance section of our website at www.tsys.com under “Investor Relations” then “Corporate Governance.”

For more information about our business see the “Financial Overview” Section on pages 9 through 11, the “Financial Review” Section on pages 11 through 31 and Note 1, Note 2, Note 8, Note 19, Note 22 and Note 24 of Notes to Consolidated Financial Statements on pages 36 through 44, pages 46 and 47, pages 57 and 58, and pages 61 through 66 of the Annual Report which are incorporated in this document by reference.

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Item 1A. Risk Factors

This section highlights specific risks that could affect our business and us. Although this section attempts to highlight key factors, please be aware that other risks may prove to be important in the future. New risks may emerge at any time and we cannot predict such risks or estimate the extent to which they may affect our financial performance. In addition to the factors discussed elsewhere or incorporated by reference in this report, among the other factors that could cause actual results to differ materially are the following:

Consolidation among financial institutions, including the merger of TSYS clients with entities that are not TSYS clients or the sale of portfolios by TSYS clients to entities that are not TSYS clients, or the nationalization or seizure by banking regulators of TSYS clients, could materially impact our financial position and results of operation.

Consolidation among financial institutions, particularly in the area of credit card operations, continues to be a major risk. Specifically, we face the risk that our clients may merge with entities that are not our clients, our clients may sell portfolios to entities that are not our clients and, based on current economic conditions, our clients may be seized by banking regulators or nationalized, thereby impacting our existing agreements and projected revenues with these clients. In addition, consolidation among financial institutions has led to an increasingly concentrated client base at TSYS which results in a changing client mix toward larger clients. Continued consolidations among financial institutions could increase the bargaining power of our current and future clients. Consolidation among financial institutions, the nationalization of financial institutions or the seizure by banking regulators of financial institutions and the resulting loss of any significant client by us could have a material adverse effect on our financial position and results of operations.

If we do not successfully renew or renegotiate our agreements with our clients, our business will suffer.

A significant amount of our revenues is derived from long-term contracts with large clients, including a major customer. Consolidation among financial institutions has resulted in an increasingly concentrated client base. The financial position of these clients and their willingness to pay for our products and services are affected by general market positions, competitive pressures and operating margins within their industries. Renewal or renegotiation time presents our clients with the opportunity to consider other providers. The loss or renegotiation of our contracts with existing clients or a significant decline in the number of transactions we process for them could have a material adverse effect on our financial position and results of operation.

Economic conditions could adversely affect our business.

A significant portion of our revenues is derived from the number of consumer credit transactions that we process which may be affected by, among other things, overall economic conditions. The payment processing industry depends heavily upon the overall level of consumer, business and government spending. Any change in economic factors, including a sustained deterioration in general economic conditions or consumer confidence, particularly in

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the United States or Europe, or increases in interest rates in key countries in which we operate may adversely affect our financial performance by reducing the number of transactions involving credit and debit cards. Future reductions in consumer spending through credit card usage could have a material adverse affect on our financial position and results of operations.

Security and privacy breaches of our systems and system failures may damage client relations, our reputation and expose us to financial liability.

The uninterrupted operation of our processing systems and the confidentiality of the client information that resides on our systems is critical to the successful operation of our business. We have security, backup and recovery systems in place, as well as business continuity plans designed to ensure our systems will not be inoperable. However, there is still a risk that a system outage or data loss may occur which would not only damage our reputation but as a result of contractual commitments could also require the payment of penalties to our clients if our systems do not meet certain operating standards. We also have what we believe to be sufficient security around our systems to prevent unauthorized access. An information breach in the system and loss of confidential information could have a longer and more significant impact on our business than a hardware failure. We electronically store personal information, such as credit card numbers and related information, about consumers who are customers of our clients. If we are unable to protect, or our clients perceive that we are unable to protect, the security and privacy of our electronic transactions, our growth could be materially adversely affected. A security or privacy breach or a system failure may:

• cause our clients to lose confidence in our services;

• harm our reputation;

• expose us to financial liability, both as a result of litigation and contractually;

• cause us to modify our protective measures which would increase our expenses; and

• increase our expenses from potential remediation costs.

Our financial exposure from the items referenced above may either not be insured against or not fully covered through any insurance maintained by us. In addition, our ability to attract and retain clients and employees could be adversely affected to the extent our reputation is damaged. While we believe we use proven applications designed for data security and integrity to process electronic transactions, there can be no assurance that our use of these applications will be sufficient to counter all current and emerging technology threats designed to breach our systems in order to gain access to confidential client information or our intellectual property or assurance that our use of these applications will be sufficient to address the security and privacy concerns of existing and potential clients.

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We may incur expenses associated with the signing of a significant client to our processing system and in connection with our efforts to grow internationally or incur other costs that may hurt our financial results.

We incur significant up-front expenses prior to converting a significant client to our processing systems. In the event we enter into a processing contract with a significant client, these expenses will directly affect our earnings results. In addition, we provide services to our clients worldwide. We are likely to incur costs in growing our business internationally, and there is no guarantee that such international expansion will be successful. We may also incur other expenses and costs, such as operating and marketing expenses. If we are unable to successfully manage these expenses as our business develops, changes and expands, our financial position and results of operations could be negatively impacted. In addition, changes in accounting policies can significantly affect how we calculate expenses and earnings.

There may be a decline in the use of credit cards as a payment mechanism for consumers or adverse developments with respect to the credit card industry in general.

If consumers do not continue to use credit cards as a payment mechanism for their transactions or if there is a change in the mix of payments between cash, credit cards and debit cards, it could have a material adverse effect on our financial position and results of operations. We believe future growth in the use of credit cards will be driven by the cost, ease-of-use, and quality of products and services offered to consumers and businesses. In order to consistently increase and maintain our profitability, consumers and businesses must continue to use credit cards. Moreover, if there is an adverse development in the credit card industry in general, such as new legislation or regulation that makes it more difficult for our clients to do business, our financial position and results of operations may be adversely affected.

We may not convert and deconvert client’s portfolios as scheduled.

The timing of the conversion of card portfolios of new clients to our processing systems and the deconversion of existing clients to other systems impacts our revenues and expenses. There is no guarantee that conversions and deconversions will occur as scheduled and this may have a material adverse effect on our financial position and results of operations.

Acquisitions and integrating such acquisitions create certain risks and may affect our financial results.

We have acquired businesses both in the United States and internationally and will continue to explore opportunities for strategic acquisitions in the future. The acquisition and integration of businesses involves a number of risks. The core risks are in the areas of valuation (negotiating a fair price for the business based on inherently limited diligence) and integration (managing the complex process of integrating the acquired company’s people, products, technology and other assets so as to realize the projected value of the acquired company and the synergies projected to be realized in connection with the acquisition). In addition, international acquisitions often involve additional or increased risks including for example:

• managing geographically separated organizations, systems and facilities;

• integrating personnel with diverse business backgrounds and organizational cultures;

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• complying with foreign regulatory requirements;

• fluctuations in currency exchange rates;

• difficulty entering new foreign markets due to, among other things, customer acceptance and business knowledge of these new markets; and

• general economic and political conditions.

The process of integrating operations could cause an interruption of, or loss of momentum in, the activities of one or more of our combined businesses and the possible loss of key personnel. The diversion of management’s attention and any delays or difficulties encountered in connection with acquisitions and the integration of the two companies’ operations could have an adverse effect on our financial position and results of operations.

Our business may be adversely affected by risks associated with foreign operations.

We provide services to our clients worldwide. As a result, our revenues derived from international operations are subject to risk of loss from foreign currency exchange rates. Revenue and profit generated by international operations will increase or decrease compared to prior periods as a result of changes in foreign currency exchange rates. We have not entered into foreign exchange forward contracts to mitigate the risks associated with our foreign operations. In addition, we may become subject to exchange control regulations that might restrict or prohibit the conversion of our foreign currency into U.S. dollars. The occurrence of any of these factors could decrease the value of revenues we receive from international operations and adversely affect our financial position and results of operations. In addition, our revenues derived from international operations are subject to risk of loss as a result of social instability and unfavorable political or diplomatic developments which could negatively impact our financial results.

The costs and effects of litigation, investigations or similar matters, or adverse facts and developments related thereto, could materially affect our financial position and results of operations.

We are involved in various litigation matters and from time to time may be involved in governmental or regulatory investigations or similar matters arising out of our business. Our insurance may not cover all claims that may be asserted against it, and any claims asserted against us, regardless of merit or eventual outcome, may harm our reputation. Should the ultimate judgments or settlements in any pending litigation or future litigation or investigation significantly exceed our insurance coverage, they could have a material adverse effect on our financial position and results of operations. In addition, we may not be able to obtain appropriate types or levels of insurance in the future, nor may we be able to obtain adequate replacement policies with acceptable terms, if at all. For more information about our legal proceedings, see Item 3 of this annual report.

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The ability to adapt technology to changing industry and customer needs or trends may affect our competitiveness or demand for our products, which may adversely affect our financial results.

Changes in technology may limit the competitiveness of and demand for our services and may result in our disintermediation from the payments value chain. The payment processing market in which we compete is subject to rapid and significant technological changes, developing industry standards and changing customer needs and preferences. Also, our customers continue to adopt new technology for business and personal uses. We must anticipate and respond to these industry and customer changes in order to remain competitive. Our inability to respond to new competitors and technological advancements could have a material adverse affect on our financial position and results of operations.

We operate in a competitive business environment, and if we are unable to compete effectively our financial position may be adversely affected.

The market for payment processing services is intensely competitive. Our competitors vary in size and in the scope and breadth of the services they offer. We face direct competition from third parties, and since certain of our larger potential clients develop their key applications in-house and therefore view their system requirements from a make-versus-buy perspective, we often compete against our potential clients’ in-house capacities. In addition, we expect that the markets in which we compete will continue to attract new competitors and new technologies. There can be no assurance that we will be able to compete successfully against current or future competitors or that the competitive pressures we face in the markets in which we operate will not materially adversely affect our financial position and results of operations.

Changes in the laws, regulations, credit card association rules or other industry standards affecting our business may impose costly compliance burdens and negatively impact our business.

There may be changes in the laws, regulations, credit card association rules or other industry standards that affect our operating environment in substantial and unpredictable ways in the U.S. as well as internationally. Changes to statutes, regulations or industry standards, including interpretation and implementation of statutes, regulations or standards, could increase the cost of doing business or affect the competitive balance. Regulation of the payments industry has increased significantly in recent years. Failure to comply with laws, rules and regulations or standards to which we are subject in the U.S. as well as internationally, including the card network rules and rules with respect to privacy and information security, may result in the suspension or revocation of a license or registration, the limitation, suspension or termination of service, and the imposition of fines, sanctions or other penalties, which could have a material adverse effect on our financial position and results of operations, as well as damage our reputation.

We and the rest of the financial services industry continue to experience increased legislative and regulatory scrutiny, including the enactment of additional legislative and regulatory initiatives such as the Dodd-Frank Wall Street Reform and Consumer Protection Act. This legislation provides for significant financial regulatory reform. The Reform Act, among

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other things, provides for the regulation and oversight by the Federal Reserve Board of debit interchange fees that are typically paid by acquirers and charged or received by a payment card network for the purpose of compensating an issuer for its involvement in an electronic debit transaction. The Reform Act also created a new Consumer Financial Protection Bureau with responsibility for most federal consumer protection laws in the area of financial services, including consumer credit. In addition, the Reform Act created a Financial Stability Oversight Council that has the authority to determine whether nonbank financial companies such as TSYS should be supervised by the Federal Reserve Board because they are systemically important to the U.S. financial system. Any such designation would result in increased regulatory burdens on our business. The overall impact of the Reform Act on TSYS is difficult to estimate. Current and future regulations as a result of the Reform Act may adversely affect our business or operations, directly or indirectly (if, for example, our clients’ businesses and operations are adversely affected). In addition, we are subject to tax laws in each jurisdiction where we do business. Changes in tax laws or their interpretations could decrease the value of revenues we receive, the value of tax losses and tax credits carry forwards recorded on our balance sheet and the amount of our cash flow and have a material adverse effect on our financial position and results of operations.

We are subject to the business cycles and credit risk of our merchant customers and our independent sales organizations.

A recessionary economic environment could affect our merchants through a higher rate of business closures, resulting in lower revenues and earnings for us. Our merchants are liable for any charges properly reversed by the card issuer on behalf of the cardholder. Our merchants and ISOs are also liable for any fines, or penalties, that may be assessed by any card networks. In the event, however, that we are not able to collect such amounts from the merchants or ISOs, due to merchant fraud, breach of contract, insolvency, bankruptcy or any other reason, we may be liable for any such charges which could have a material adverse effect on our financial position and results of operations.

We incur chargeback liability when our merchants refuse or cannot reimburse chargebacks resolved in favor of their customers. We cannot accurately anticipate these liabilities, which may adversely affect our financial results.

In the event a billing dispute between a cardholder and a merchant is not resolved in favor of the merchant, the transaction is normally “charged back” to the merchant and the purchase price is credited or otherwise refunded to the cardholder. If we are unable to collect such amounts from the merchant’s account or reserve account (if applicable), or if the merchant refuses or is unable, due to closure, bankruptcy or other reasons, to reimburse us for a chargeback, we bear the loss for the amount of the refund paid to the cardholder. We may experience significant losses from chargebacks in the future. Any increase in chargebacks not paid by our merchants could have a material adverse affect on our financial position and results of operation.

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Fraud by merchants or others may adversely affect our financial results.

We have potential liability for fraudulent bankcard transactions or credits initiated by merchants or others. Examples of merchant fraud include when a merchant knowingly uses a stolen or counterfeit bankcard or card number to record a false sales transaction, processes an invalid bankcard, or intentionally fails to deliver the merchandise or services sold in an otherwise valid transaction. Criminals are using increasingly sophisticated methods to engage in illegal activities such as counterfeit and fraud. While we have systems and procedures designed to detect and reduce the impact of fraud, we cannot assure the effectiveness of these measures. It is possible that incidents of fraud could increase in the future. Failure to effectively manage risk and prevent fraud would increase our chargeback liability or other liability. Increases in chargebacks or other liability could have a material adverse effect on our financial position and results of operations.

We may not be able to successfully manage our intellectual property and may be subject to infringement claims.

In the rapidly developing legal framework, we rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our proprietary technology. Despite our efforts to protect our intellectual property, third parties may infringe or misappropriate our intellectual property or may develop software or technology competitive to us. Our competitors may independently develop similar technology, duplicate our products or services or design around our intellectual property rights. We may have to litigate to enforce and protect our intellectual property rights, trade secrets and know-how or to determine their scope, validity or enforceability, which is expensive and could cause a diversion of resources and may not prove successful. The loss of intellectual property protection or the inability to secure or enforce intellectual property protection could harm our business and ability to compete.

We may also be subject to costly litigation in the event our products and technology infringe upon another party’s proprietary rights. Third parties may have, or may eventually be issued, patents that would be infringed by our products or technology. Any of these third parties could make a claim of infringement against us with respect to our products or technology. We may also be subject to claims by third parties for breach of copyright, trademark or license usage rights. Any such claims and any resulting litigation could subject us to significant liability for damages. An adverse determination in any litigation of this type could require us to design around a third party’s patent or to license alternative technology from another party. In addition, litigation is time consuming and expensive to defend and could result in the diversion of the time and attention of our management and employees. Any claim from third parties may result in limitation on our ability to use the intellectual property subject to these claims.

If we lose key personnel or are unable to attract additional qualified personnel, our business could be adversely affected.

We are dependent upon the ability and experience of a number of highly skilled technical, management and sales and marketing personnel who have substantial experience with our operations, the rapidly changing transaction processing industry and markets in which we offer our services. It is possible that the loss of the services of one or a combination of our key

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personnel would have an adverse effect on our operations. Our success also depends on our ability to continue to attract, manage and retain additional qualified management and technical personnel. Competition for the best people, particularly those individuals with technology experience, is intense. We cannot guarantee that we will continue to attract or retain such personnel.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

As of December 31, 2011, we and our subsidiaries owned 14 facilities encompassing approximately 1,445,546 square feet and leased 51 facilities encompassing approximately 748,024 square feet. These facilities are used for operational, sales and administrative purposes.

	Owned Facilities			Leased Facilities
	Number	Square Footage		Number	Square Footage
North America Services	9		1,345,800	8		200,097
International Services	2		96,368	26		250,245
Merchant Services	3		3,378	17		297,682

We believe that our facilities are suitable and adequate for our current business; however, we periodically review our space requirements and may acquire new space to meet the needs of our businesses or consolidate and dispose of or sublet facilities which are no longer required.

See Note 1, Note 7, Note 19 and Note 22 of Notes to Consolidated Financial Statements on pages 36 through 44, page 46, pages 57 and 58, and pages 61 through 63 and “Operating Expenses” and “Property and Equipment” under the “Financial Review” Section on pages 23 and 24, and page 26, respectively, of the Annual Report which are incorporated in this document by reference.

Item 3. Legal Proceedings

See Note 19 of Notes to Consolidated Financial Statements on pages 57 and 58 of the Annual Report which is incorporated in this document by reference.

Item 4. Mine Safety Disclosures

None.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Repurchases of Equity Securities

The “Quarterly Financial Data (Unaudited), Stock Price, Dividend Information” Section under the “Financial Review” Section on page 70, Note 17 of Notes to Consolidated Financial

12

Statements on pages 55 and 56 and “Stock Performance Graph” on page 71 of the Annual Report are incorporated in this document by reference. The “Stock Performance Graph” is incorporated herein by reference; however, this information shall not be deemed to be “soliciting material” or to be “filed” with the Commission or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 6. Selected Financial Data

The “Selected Financial Data” Section which is set forth on page 9 of the Annual Report is incorporated in this document by reference.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The “Financial Overview” and “Financial Review” Sections which are set forth on pages 9 through 31 of the Annual Report which includes the information encompassed within “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” are incorporated in this document by reference.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Foreign Exchange Risk. We are exposed to foreign exchange risk because we have assets, liabilities, revenues and expenses denominated in foreign currencies. These currencies are translated into U.S. dollars at current exchange rates, except for revenues, costs and expenses and net income, which are translated at the average exchange rate for each reporting period. Net exchange gains or losses resulting from the translation of assets and liabilities of our foreign operations, net of tax, are accumulated in a separate section of shareholders’ equity entitled “accumulated other comprehensive income (loss), net.” The amount of other comprehensive (loss) income, net of tax, related to foreign currency translation for the years ended December 31, 2011, 2010 and 2009 was:

(in millions)	2011		2010			2009
Comprehensive income (loss), net of tax	$	1.1	($	7.5	)	$	12.1

Currently, we do not use financial instruments to hedge our exposure to exchange rate changes.

The following table presents the carrying value of the net assets of our foreign operations in U.S. dollars at December 31, 2011:

(in millions)	December 31, 2011
Europe	$	171.9
China		76.3
Cyprus		35.1
Japan		27.2
Malaysia		7.4
Other		6.6

13

We record foreign currency translation adjustments associated with other balance sheet accounts. See “Nonoperating Income (Expense)” under the “Financial Review” Section on page 23 of the Annual Report which is incorporated in this document by reference. We maintain several cash accounts denominated in foreign currencies, primarily in Euros and British Pounds Sterling. As we translate the foreign-denominated cash balances into U.S. dollars, the translated cash balance is adjusted upward or downward depending upon the foreign currency exchange movements. The upward or downward adjustment is recorded as a gain or loss on foreign currency translation in our statements of income. As those cash accounts have increased, the upward or downward adjustments have increased. We recorded a net translation loss of approximately $3.1 million for the year ended December 31, 2011 relating to the translation of foreign denominated balance sheet accounts, most of which were cash. The balance of the foreign-denominated cash accounts subject to risk of translation gains or losses at December 31, 2011 was approximately $6.1 million, the majority of which is denominated in Euros and British Pounds Sterling.

We provide financing to our international operation in Europe through an intercompany loan that requires the operation to repay the financing in U.S. dollars. The functional currency of each operation is the respective local currency. As we translate the foreign currency denominated financial statements into U.S. dollars, the translated balance of the financing (liability) is adjusted upward or downward to match the U.S. dollar obligation (receivable) on our financial statements. The upward or downward adjustment is recorded as a gain or loss on foreign currency translation in other comprehensive income.

The net asset account balance subject to foreign currency exchange rates between the local currencies and the U.S. dollar at December 31, 2011 was $14.5 million.

The following table presents the potential effect on income before income taxes of hypothetical shifts in the foreign currency exchange rate between the local currencies and the U.S. dollar of plus or minus 100 basis points, 500 basis points and 1,000 basis points based on the net asset account balance of $14.5 million at December 31, 2011.

	Effect of Basis Point Change
	Increase in basis point of						Decrease in basis point of
(in thousands)	100		500		1,000		100			500			1,000
Effect on income before income taxes	$	145		723		1,446		(145	)		(723	)		(1,446	)

The foreign currency risks associated with other currencies is not significant.

Interest Rate Risk. We are also exposed to interest rate risk associated with the investing of available cash. We invest available cash in conservative short-term instruments and are primarily subject to changes in the short-term interest rates.

14

The following table provides information about our debt obligations that are sensitive to changes in interest rates. The table presents principal cash flows and related weighted average interest rates by expected maturity dates. The information is presented in U.S. dollar equivalents, which is our reporting currency. The debt obligation’s actual cash flows are denominated in U.S. dollars (US) and Japanese YEN (YEN), as indicated in parentheses.

At December 31, 2011	Expected maturity date
Liabilities	2012			2013			2014			2015		2016		TOTAL
(US$ Equivalent in millions)
Long-term Debt:
Fixed Rate (US)	$	13.3			13.4			—			—		—	$	26.7
Average interest rate		1.50	%		1.50	%									1.50	%
Variable Rate (US)	$	168.0			—			—			—		—	$	168.0
Average interest rate		0.87	%												0.87	%
Variable Rate (YEN)	$	—			—			25.7			—		—	$	25.7
Average interest rate								0.96	%						0.96	%

Item 8. Financial Statements and Supplementary Data

The “Quarterly Financial Data (Unaudited), Stock Price, Dividend Information” Section, which is set forth on page 70, and the “Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Cash Flows, Consolidated Statements of Equity and Comprehensive Income, Notes to Consolidated Financial Statements, Report of Independent Registered Public Accounting Firm and Management’s Report on Internal Control Over Financial Reporting,” which are set forth on pages 32 through 69 of the Annual Report are incorporated in this document by reference.

Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. We have evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this annual report as required by Rule 13a-15 of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This evaluation was carried out under the supervision and with the participation of our management, including our chief executive officer and chief financial officer. Based on this evaluation, the chief executive officer and chief financial officer concluded that as of December 31, 2011, TSYS’ disclosure controls and procedures were designed and effective to ensure that the information required to be disclosed by TSYS in reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and were also designed and effective to ensure that the information required to be disclosed in the reports that TSYS files or submits under the Exchange Act is accumulated and communicated to management, as appropriate to allow timely decisions regarding required disclosure.

15

Management’s Report on Internal Control Over Financial Reporting and Report of Independent Registered Public Accounting Firm. “Management’s Report on Internal Control Over Financial Reporting,” which is set forth on page 69 of the Annual Report, and “Report of Independent Registered Public Accounting Firm,” which is set forth on page 68 of the Annual Report, are incorporated in this document by reference.

Changes in Internal Control Over Financial Reporting. No change in our internal control over financial reporting occurred during the fourth fiscal quarter covered by this annual report that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

None.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Information included under the following captions in our Proxy Statement is incorporated in this document by reference:

• “PROPOSALS TO BE VOTED ON” – “PROPOSAL 1: ELECTION OF DIRECTORS,”

• “EXECUTIVE OFFICERS,”

• “SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE,” and

• “CORPORATE GOVERNANCE AND BOARD MATTERS” – “Committees of the Board.”

We have a Code of Business Conduct and Ethics that applies to all directors, officers and employees, including our principal executive officer, our principal financial officer and our chief accounting officer. You can find our Code of Business Conduct and Ethics in the Corporate Governance section of our website at www.tsys.com under “Investor Relations” then “Corporate Governance.” We will post any amendments to the Code of Business Conduct and Ethics and any waivers that are required to be disclosed by the rules of either the SEC or the NYSE in the Corporate Governance section of our website.

16

Item 11. Executive Compensation

Information included under the following captions in our Proxy Statement is incorporated in this document by reference:

• “DIRECTOR COMPENSATION,”

• “EXECUTIVE COMPENSATION” – “Compensation Discussion and Analysis,” “Compensation Committee Report,” “Risk Assessment of Compensation Programs” and “Compensation Tables and Narratives,” and

• “CORPORATE GOVERNANCE AND BOARD MATTERS” – “Committees of the Board” – “Compensation Committee Interlocks and Insider Participation.”

The information included under the heading “Compensation Committee Report” in our Proxy Statement is incorporated herein by reference; however, this information shall not be deemed to be “soliciting material” or to be “filed” with the Commission or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Information pertaining to equity compensation plans is contained in Note 15 of Notes to Consolidated Financial Statements on page 51 of the Annual Report and is incorporated in this document by reference.

Information included under the following captions in our Proxy Statement is incorporated in this document by reference:

• “STOCK OWNERSHIP OF DIRECTORS AND EXECUTIVE OFFICERS,” and

• “PRINCIPAL SHAREHOLDERS.”

Item 13. Certain Relationships and Related Transactions, and Director Independence

Information included under the following captions in our Proxy Statement is incorporated in this document by reference:

• “CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,” and

• “CORPORATE GOVERNANCE AND BOARD MATTERS” – “Independence.”

Item 14. Principal Accountant Fees and Services

Information included under the following captions in our Proxy Statement is incorporated in this document by reference:

• “AUDIT COMMITTEE REPORT” – “KPMG LLP Fees and Services” (excluding the information under the main caption “AUDIT COMMITTEE REPORT”); and “Policy on Audit Committee Pre-Approval.”

17

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a) 1. Financial Statements

The following consolidated financial statements of TSYS are incorporated in this document by reference from pages 32 through 69 of the Annual Report.

Consolidated Balance Sheets - December 31, 2011 and 2010.

Consolidated Statements of Income - Years Ended December 31, 2011, 2010 and 2009.

Consolidated Statements of Cash Flows - Years Ended December 31, 2011, 2010 and 2009.

Consolidated Statements of Equity and Comprehensive Income - Years Ended December 31, 2011, 2010 and 2009.

Notes to Consolidated Financial Statements.

Report of Independent Registered Public Accounting Firm.

Management’s Report on Internal Control Over Financial Reporting.

      2. Financial Statement Schedules

The following report of independent registered public accounting firm and consolidated financial statement schedule of TSYS are included:

Report of Independent Registered Public Accounting Firm.

Schedule II - Valuation and Qualifying Accounts - Years Ended December 31, 2011, 2010 and 2009.

All other schedules are omitted because they are inapplicable or the required information is included in the consolidated financial statements and notes thereto.

      3. Exhibits

The following exhibits are filed herewith or are incorporated to other documents previously filed with the SEC. Exhibits 10.6 through 10.40 pertain to executive compensation plans and arrangements. With the exception of those portions of the Annual Report and Proxy Statement that are expressly incorporated by reference in this Form 10-K, such documents are not to be deemed filed as part of this Form 10-K.

18

Exhibit Number	Description
3.1	Articles of Incorporation of TSYS, as amended, incorporated by reference to Exhibit 3.1 of TSYS’ Current Report on Form 8-K dated April 30, 2009.
3.2	Bylaws of TSYS, as amended, incorporated by reference to Exhibit 3.1 of TSYS’ Current Report on Form 8-K dated July 28, 2009.
10.1	Credit Agreement of TSYS with Bank of America N.A., as Administrative Agent, the Royal Bank of Scotland plc, as Syndication Agent, and the other lenders named therein, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated December 27, 2007.
10.2	Indemnification and Insurance Matters Agreement by and among Synovus Financial Corp. and TSYS, dated as of November 30, 2007, incorporated by reference to Exhibit 10.3 of TSYS’ Current Report on Form 8-K dated November 30, 2007.
10.3	Investment Agreement (excluding exhibits and schedules) dated March 1, 2010 by and between First National Bank of Omaha and TSYS, incorporated by reference to Exhibit 10.1 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, as filed with the SEC on May 7, 2010.
10.4	Assignment of Investment Agreement dated April 1, 2010 between TSYS and Columbus Depot Equipment Company, a wholly owned subsidiary of TSYS, incorporated by reference to Exhibit 10.2 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, as filed with the SEC on May 7, 2010.
10.5	Amended and Restated Limited Liability Company Agreement of FNMS Holding, LLC (excluding exhibits and schedules) dated April 1, 2010 by and between Columbus Depot Equipment Company, First National Bank of Omaha, FN Merchant Partners, Inc. and FNMS Holding, LLC, incorporated by reference to Exhibit 10.3 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, as filed with the SEC on May 7, 2010.
EXECUTIVE COMPENSATION PLANS AND ARRANGEMENTS
10.6	Total System Services, Inc. 2002 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.2 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2001, as filed with the SEC on March 19, 2002.

19

10.7	Amended and Restated Total System Services, Inc. Deferred Compensation Plan, incorporated by reference to Exhibit 10.1 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, as filed with the SEC on August 9, 2010.
10.8	Total System Services, Inc. 1992 Long-Term Incentive Plan, which was renamed the Total System Services, Inc. 2000 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.5 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 1992, as filed with the SEC on March 18, 1993.
10.9	Amended and Restated Total System Services, Inc. Directors’ Deferred Compensation Plan, incorporated by reference to Exhibit 10.2 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2008, as filed with the SEC on August 7, 2008.
10.10	Wage Continuation Agreement of TSYS, incorporated by reference to Exhibit 10.7 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 1992, as filed with the SEC on March 18, 1993.
10.11	Agreement in Connection With Personal Use of Company Aircraft, incorporated by reference to Exhibit 10.15 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as filed with the SEC on February 27, 2009.
10.12	Split Dollar Insurance Agreement of TSYS, incorporated by reference to Exhibit 10.10 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 1993, as filed with the SEC on March 22, 1994.
10.13	Change of Control Agreement for executive officers of TSYS, incorporated by reference to Exhibit 10.17 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2007, as filed with the SEC on February 29, 2008.
10.14	Split Dollar Insurance Agreement and related Executive Benefit Substitution Agreement, incorporated by reference to Exhibit 10.19 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2001, as filed with the SEC on March 19, 2002.
10.15	Summary of Board of Directors Compensation.
10.16	Form of Non-Employee Director Restricted Stock Award Agreement for the Total System Services, Inc. 2002 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated February 1, 2005, as filed with the SEC on February 3, 2005.

20

10.17	Form of Stock Option Agreement for stock option awards under the Total System Services, Inc. 2002 Long-Term Incentive Plan for grants made subsequent to January 17, 2006, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated January 17, 2006.
10.18	Form of Restricted Stock Award Agreement for restricted stock awards under the Total System Services, Inc. 2002 Long-Term Incentive Plan for grants made subsequent to January 17, 2006, incorporated by reference to Exhibit 10.2 of TSYS’ Current Report on Form 8-K dated January 17, 2006.
10.19	Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated April 24, 2007, as filed with the SEC on April 25, 2007.
10.20	Form of Restricted Stock Award Agreement for restricted stock awards under the Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.3 of TSYS’ Current Report on Form 8-K dated April 24, 2007, as filed with the SEC on April 25, 2007.
10.21	Form of Performance-Based Restricted Stock Award Agreement for performance-based restricted stock awards under the Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.4 of TSYS’ Current Report on Form 8-K dated April 24, 2007.
10.22	Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.30 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2007, as filed with the SEC on February 29, 2008.
10.23	Form of Performance-Based Restricted Stock Award Agreement for performance-based restricted stock awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.3 of TSYS’ Current Report on Form 8-K dated January 2, 2008.
10.24	Form of Restricted Stock Unit Agreement for restricted stock unit awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.4 of TSYS’ Current Report on Form 8-K dated January 2, 2008.

21

10.25	Form of Revised Stock Option Agreement for stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.2 of TSYS’ Current Report on Form 8-K dated February 5, 2008.
10.26	Form of Retention Restricted Stock Award Agreement for retention restricted stock awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.3 of TSYS’ Current Report on Form 8-K dated February 5, 2008.
10.27	Form of Performance-Based Retention Restricted Stock Award Agreement for performance-based restricted stock awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.4 of TSYS’ Current Report on Form 8-K dated February 5, 2008.
10.28	Form of Revised Restricted Stock Award Agreement for restricted stock awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.5 of TSYS’ Current Report on Form 8-K dated February 5, 2008.
10.29	Form of Amended and Revised Stock Option Agreement for stock option awards under the Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated March 28, 2008.
10.30	Form of Performance Share Agreement for 2009 performance share awards under the Total System Services, Inc. 2007 and 2008 Omnibus Plans, incorporated by reference to Exhibit 10.38 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as filed with the SEC on February 27, 2009.
10.31	Form of Amended and Revised Stock Option Agreement for 2008 stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.3 of TSYS’ Current Report on Form 8-K dated March 28, 2008.
10.32	Form of Amended and Revised Stock Option Agreement for 2009 stock option awards under the Total System Services, Inc. 2007 and 2008 Omnibus Plans, incorporated by reference to Exhibit 10.40 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as filed with the SEC on February 27, 2009.
10.33	Form of Stock Option Agreement for 2010 stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.4 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, as filed with the SEC on May 7, 2010.

22

10.34	Form of Performance Share Agreement for 2010 performance share awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.5 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, as filed with the SEC on May 7, 2010.
10.35	Form of Performance-Based Special Stock Option Agreement for performance-based stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.6 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, as filed with the SEC on May 7, 2010.
10.36	Form of Non-Employee Director Fully Vested Stock Option Agreement for the Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.37 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on February 28, 2011.
10.37	Form of Non-Employee Director Fully Vested Share Award Agreement for the Total System Services, Inc. 2007 Omnibus Plan, incorporated by reference to Exhibit 10.38 of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on February 28, 2011.
10.38	Form of Stock Option Agreement for 2011 stock option awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.1 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, as filed with the SEC on May 6, 2011.
10.39	Form of Performance Share Agreement for 2011 performance share awards under the Total System Services, Inc. 2008 Omnibus Plan, incorporated by reference to Exhibit 10.2 of TSYS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, as filed with the SEC on May 6, 2011.
10.40	Form of Indemnification Agreement for directors and executive officers of TSYS, incorporated by reference to Exhibit 10.1 of TSYS’ Current Report on Form 8-K dated July 25, 2007.
13.1	Certain specified pages of TSYS’ 2011 Annual Report to Shareholders which are incorporated herein by reference.

23

21.1	Subsidiaries of Total System Services, Inc.
23.1	Consent of Independent Registered Public Accounting Firm.
24.1	Powers of Attorney contained on the signature pages of this 2011 Annual Report on Form 10-K and incorporated herein by reference.
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1	Annual Report on Form 11-K for the Total System Services, Inc. Employee Stock Purchase Plan for the year ended December 31, 2011 (to be filed as an amendment hereto within 120 days of the end of the period covered by this report.)

We agree to furnish the SEC, upon request, a copy of each instrument with respect to issues of long-term debt. The principal amount of any individual instrument, which has not been previously filed, does not exceed ten percent of the total assets of TSYS and our subsidiaries on a consolidated basis.

24

Report of Independent Registered Public Accounting Firm

The Board of Directors

Total System Services, Inc.:

Under date of February 24, 2012, we reported on the consolidated balance sheets of Total System Services, Inc. and subsidiaries as of December 31, 2011 and 2010, and the related consolidated statements of income, cash flows, and equity and comprehensive income for each of the years in the three-year period ended December 31, 2011, as contained in the December 31, 2011 annual report on Form 10-K. In connection with our audits of the aforementioned consolidated financial statements, we also audited the related consolidated financial statement schedule in Schedule II. This financial statement schedule is the responsibility of the Company’s management. Our responsibility is to express an opinion on this financial statement schedule based on our audits.

In our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

/s/ KPMG LLP

Atlanta, Georgia

February 24, 2012

TOTAL SYSTEM SERVICES, INC.

Schedule II

Valuation and Qualifying Accounts

(in thousands)

			Additions
			Changes in
	Balance at		allowances, charges to			Balance at
	beginning		expenses and changes			end
	of period		to other accounts	Deductions		of period
Year ended December 31, 2009:
Provision for doubtful accounts	$	2,690	980(1)		(2,054)(3)	$	1,616
Provision for billing adjustments	$	5,313	5,011(1)		(5,623)(3)	$	4,701
Transaction processing accruals - processing errors	$	5,417	4,056(2)		(3,989)(3)	$	5,484
Year ended December 31, 2010:
Provision for doubtful accounts	$	1,616	500(1)		(134)(3)	$	1,982
Provision for billing adjustments	$	4,701	(1,297)(1)		(844)(3)	$	2,560
Transaction processing accruals - processing errors	$	5,484	3,891(2)		(4,235)(3)	$	5,140
Year ended December 31, 2011:
Provision for doubtful accounts	$	1,982	1,899(1)		(1,773)(3)	$	2,108
Provision for billing adjustments	$	2,560	(347)(1)		(176)(3)	$	2,037
Transaction processing accruals - processing errors	$	5,140	3,763(2)		(3,581)(3)	$	5,322

(1) Amount reflected includes charges to (recoveries of) bad debt expense which are classified in selling, general and administrative expenses and the charges for billing adjustment which are recorded against revenues.

(2) Amount reflected is the change in transaction processing accruals reflected in cost of services expenses.

(3) Accounts deemed to be uncollectible and written off during the year as it relates to bad debts. Amounts that relate to billing adjustments and transaction processing accruals reflect actual billing adjustments and processing errors charged against the allowances.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, Total System Services, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	TOTAL SYSTEM SERVICES, INC.
	(Registrant)
Date: February 24, 2012	By:	/s/ Philip W. Tomlinson
		Philip W. Tomlinson,
		Principal Executive Officer and
		Chairman of the Board

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Philip W. Tomlinson and M. Troy Woods and each of them, his true and lawful attorney(s)-in-fact and agent(s), with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this report and to file the same, with all exhibits and schedules thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney(s)-in-fact and agent(s) full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney(s)-in-fact and agent(s), or their substitute(s), may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, this report has been signed by the following persons in the capacities and on the dates indicated.

/s/ Philip W. Tomlinson	Date: February 24, 2012
Philip W. Tomlinson,
Principal Executive Officer and Chairman of the Board
/s/ M. Troy Woods	Date: February 24, 2012
M. Troy Woods,
President and Director

/s/ James B. Lipham	Date: February 24, 2012
James B. Lipham,
Senior Executive Vice President and Principal Financial Officer
/s/ Dorenda K. Weaver	Date: February 24, 2012
Dorenda K. Weaver,
Chief Accounting Officer
/s/ James H. Blanchard	Date: February 24, 2012
James H. Blanchard,
Director
/s/ Richard Y. Bradley	Date: February 24, 2012
Richard Y. Bradley,
Director
/s/ Kriss Cloninger III	Date: February 24, 2012
Kriss Cloninger III,
Director
/s/ Walter W. Driver, Jr.	Date: February 24, 2012
Walter W. Driver, Jr.,
Director
/s/ Gardiner W. Garrard, Jr.	Date: February 24, 2012
Gardiner W. Garrard, Jr.,
Director
/s/ Sidney E. Harris	Date: February 24, 2012
Sidney E. Harris,
Director
/s/ Mason H. Lampton	Date: February 24, 2012
Mason H. Lampton,
Director

/s/ H. Lynn Page	Date: February 24, 2012
H. Lynn Page,
Director
/s/ W. Walter Miller, Jr.	Date: February 24, 2012
W. Walter Miller, Jr.,
Director
/s/ John T. Turner	Date: February 24, 2012
John T. Turner,
Director
/s/ Richard W. Ussery	Date: February 24, 2012
Richard W. Ussery,
Director
/s/ James D. Yancey	Date: February 24, 2012
James D. Yancey,
Director
/s/ Rebecca K. Yarbrough	Date: February 24, 2012
Rebecca K. Yarbrough,
Director

EX-10.15

Exhibit 10.15

TOTAL SYSTEM SERVICES, INC.

Board of Directors Compensation for Non-Employee Directors

Cash Compensation

Annual Board Retainer	$	40,000
Annual Committee Member Retainers
Audit Committee	$	15,000
Compensation Committee	$	10,000
Corporate Governance and Nominating Committee	$	7,500
Executive Committee	$	10,000
Annual Committee Chair Retainers*
Audit Committee	$	15,000
Compensation Committee	$	10,000
Corporate Governance and Nominating Committee	$	7,500
Executive Committee	$	15,000
Annual Lead Director Retainer	$	5,000

* Note: The committee chair receives both an annual committee member retainer and an annual committee chair retainer.

Equity Compensation

An annual equity award with a fixed value of $20,000, with 50% awarded in the form of fully vested stock options and 50% in the form of fully vested shares

EX-13.1

Exhibit 13.1

Selected Financial Data

The following financial data should be read in conjunction with the Consolidated Financial Statements and Notes thereto and Financial Review sections of the Annual Report. The historical trends in TSYS’ results of operations and financial position over the last five years are presented below.

	Years Ended December 31,
(in thousands, except per share data)	2011			2010			2009			2008			2007
Income Statement Data:
Total revenues	$	1,808,966			1,717,577			1,677,483			1,711,534			1,651,981
Operating income	$	322,456			309,429			344,026			371,122			351,437
Income from continuing operations, net of tax	$	222,662			208,866			225,720			253,085			239,315
(Loss) income from discontinued operations, net of tax		—			(3,245	)		(6,544	)		(1,409	)		104
Net income		222,662			205,621			219,176			251,676			239,419
Net income attributable to noncontrolling interests		(2,103	)		(11,674	)		(3,963	)		(1,576	)		(1,976	)
Net income attributable to TSYS common shareholders	$	220,559			193,947			215,213			250,100			237,443
Basic earnings per share (EPS)* attributable to TSYS common shareholders:
Income from continuing operations	$	1.15			1.00			1.12			1.27			1.20
(Loss) income from discontinued operations		—			(0.02	)		(0.03	)		(0.01	)		0.00
Net income	$	1.15			0.99			1.09			1.26			1.20
Diluted EPS* attributable to TSYS common shareholders:
Income from continuing operations	$	1.15			1.00			1.12			1.27			1.20
(Loss) income from discontinued operations		—			(0.02	)		(0.03	)		(0.01	)		0.00
Net income	$	1.15			0.99			1.09			1.26			1.20
Cash dividends declared per share	$	0.31			0.28			0.28			0.28			3.31

	At December 31,
(in thousands)	2011		2010		2009		2008		2007
Balance Sheet Data:
Total assets	$	1,858,392		1,952,261		1,710,954		1,550,024		1,479,081
Obligations under long-term debt and capital leases, excluding current portion		63,593		225,276		205,123		209,871		3,687

* Note: Basic and diluted EPS amounts for continuing operations and net income do not total due to rounding.

Financial Overview

Total System Services, Inc.’s (TSYS’ or the Company’s) revenues are derived from providing global payment provider services to financial and nonfinancial institutions, generally under long-term

processing contracts. The Company’s services are provided through the Company’s three operating segments: North America Services, International Services and Merchant Services.

Through the Company’s North America Services and International Services segments, TSYS processes

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information through its cardholder systems to financial institutions throughout the United States and internationally. The Company’s North America Services segment provides these services to clients in the United States, Canada, Mexico and the Caribbean. The Company’s International Services segment provides services to clients in Europe, India, Middle East, Africa, Asia Pacific and Brazil. The Company’s Merchant Services segment provides merchant services to merchant acquirers and merchants in the United States.

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet Merchant Services, Inc. (TermNet), an Atlanta-based merchant acquirer, for $42 million in cash. TermNet provides merchant services to qualified merchants serving a diverse base of over 18,000 merchants. The acquisition of TermNet expands the Company’s presence in the merchant acquiring industry. The results of operations for TermNet have been included in the Company’s results beginning May 2, 2011, and are included in the Merchant Services segment.

On March 1, 2010, TSYS announced the signing of an Investment Agreement with First National Bank of Omaha (FNBO) to form a new joint venture company, First National Merchant Solutions, LLC (FNMS), of which TSYS would own 51%. FNMS offers transaction processing, merchant support and underwriting, and value-added services, as well as Visa- and MasterCard-branded prepaid cards for businesses of any size. FNMS is included in the Merchant Services segment. The effective date of the acquisition was April 1, 2010. On January 4, 2011, TSYS announced it had acquired, effective January 1, 2011, the remaining 49% interest in FNMS, from FNBO. The company has been rebranded as TSYS Merchant Solutions (TMS).

Due to the somewhat seasonal nature of the credit card industry, TSYS’ revenues and results of operations have generally increased in the fourth quarter of each year because of increased transaction and authorization volumes during the traditional holiday shopping season. Furthermore, growth or declines in card and merchant portfolios of existing clients, the conversion of cardholder and merchant accounts of new clients to the Company’s processing platforms, the receipt of fees for early contract termination and the loss of cardholder and merchant accounts either through purges or deconversions impact the results of operations from period to period.

Another factor which may affect TSYS’ revenues and results of operations from time to time is

consolidation in the financial services or retail industries either through the sale by a client of its business, its card portfolio or a segment of its accounts to a party which processes cardholder or merchant accounts internally or uses another third-party processor. A change in the economic environment in the retail sector, or a change in the mix of payments between cash and cards could favorably or unfavorably impact TSYS’ financial position, results of operations and cash flows in the future.

TSYS’ reported financial results will also be impacted by significant shifts in currency conversion rates. TSYS does not view foreign currency as an economic event for the Company but as a financial reporting issue. Because changes in foreign currency exchange rates distort the operating growth rates, TSYS discloses the impact of foreign currency translation on its financial performance.

A significant amount of the Company’s revenues is derived from long-term contracts with large clients, including a certain major customer. Processing contracts with large clients, representing a significant portion of the Company’s total revenues, generally provide for discounts on certain services based on the size and activity of clients’ portfolios. Therefore, revenues and the related margins are influenced by the client mix relative to the size of client portfolios, as well as the number and activity of individual cardholder or merchant accounts processed for each client. Consolidation among financial institutions has resulted in an increasingly concentrated client base, which results in a change in client mix toward larger clients.

Economic Conditions

General economic conditions in the U.S. and other areas of the world dramatically weakened during most of 2009 but showed improvement during 2010 and 2011. Many of TSYS’ businesses rely in part on the number of consumer credit transactions which have been reduced by a weakened U.S. and world economy and difficult credit markets.

General reduction in consumer credit card spending negatively impacted the Company’s revenues during 2009. Also as a result of the current economic conditions in the U.S., credit card issuers have been reducing credit limits and closing accounts and are more selective with respect to whom they issue credit cards. Beginning in 2010, improving economic conditions led card issuers to increase card solicitations. Continued improvement of economic conditions in the U.S. could positively impact future revenues and profits of the Company.

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Regulation

Government regulation affects key areas of TSYS’ business, in the U.S. as well as internationally. As a result of the financial crisis, TSYS, along with the rest of the financial services industry, continues to experience increased legislative and regulatory scrutiny, including the enactment of additional legislative and regulatory initiatives such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (Financial Reform Act). This legislation, which provides for sweeping financial regulatory reform, may have a significant and negative impact on the Company’s clients, which could impact TSYS’ earnings through fee reductions, higher costs (both regulatory and implementation) and new restrictions on our operations. The Financial Reform Act may also impact the competitive dynamics of the financial services industry in the U.S. by more adversely impacting large financial institutions, some of which are TSYS clients, and by adversely impacting the competitive position of U.S. financial institutions in comparison to foreign competitors in certain businesses.

The Financial Reform Act, which includes the Durbin Amendment to the Electronic Funds Transfer Act, mandates that the Federal Reserve Board limit debit card interchange fees. Final rules were issued in June 2011. The final rules cap interchange fees for debit transactions at $0.21 plus five basis points of the transaction and required that the amount of any debit interchange transaction fee charged be reasonable and proportional to the costs incurred in connection with the transaction.

Although this legislative action by the U.S. Congress had been anticipated for some time, it remains impossible to predict the impact, if any, that the law and the regulations to be promulgated thereunder may have on the Company’s operations or its financial condition in the future. However, as TSYS’ business is predominately credit card related, the Durbin Amendment is not expected to have a significant negative impact upon TSYS’ business.

Financial Review

This Financial Review provides a discussion of critical accounting policies and estimates, related party transactions and off-balance sheet arrangements. This Financial Review also discusses the results of

operations, financial position, liquidity, and capital resources of TSYS and outlines the factors that have affected its recent earnings, as well as those factors that may affect its future earnings. The accompanying Consolidated Financial Statements and related Notes are an integral part of this Financial Review and should be read in conjunction with it.

Critical Accounting Policies and Estimates

TSYS’ financial position, results of operations and cash flows are impacted by the accounting policies the Company has adopted. In order to gain a full understanding of the Company’s financial statements, one must have a clear understanding of the accounting policies employed.

Refer to Note 1 in the consolidated financial statements for more information on the Company’s basis of presentation and a summary of significant accounting policies.

Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations are listed in the Company’s forward-looking statements. Negative developments in these or other risk factors could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

Management believes that the following accounting policies are the most critical to fully understand and evaluate the Company’s results. Within each critical policy, the Company makes estimates that require management’s subjective or complex judgments about the effects of matters that are inherently uncertain.

A summary of the Company’s critical accounting estimates applicable to all three reportable operating segments follows:

Allowance for Doubtful Accounts and Billing Adjustments

The Company estimates the allowances for doubtful accounts. When estimating the allowances for doubtful accounts, the Company takes into consideration such factors as its day-to-day knowledge of the financial position of specific clients, the industry and size of its clients, the overall composition of its accounts receivable aging, prior

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experience with specific customers of accounts receivable write-offs and prior history of allowances in proportion to the overall receivable balance. This analysis includes an ongoing and continuous communication with its largest clients and those clients with past due balances. A financial decline of any one of the Company’s large clients could have a material adverse effect on collectability of receivables and thus the adequacy of the allowance for doubtful accounts. If the actual collectability of clients’ accounts is not consistent with the Company’s estimates, bad debt expense, which is recorded in selling, general and administrative expenses, may be materially different than was initially recorded. The Company’s experience and extensive data accumulated historically indicates that these estimates have proven reliable over time.

The Company estimates allowances for billing adjustments for potential billing discrepancies. When estimating the allowance for billing adjustments, the Company considers its overall history of billing adjustments, as well as its history with specific clients and known disputes. If the actual adjustments to clients’ billing is not consistent with the Company’s estimates, billing adjustments, which is recorded as a reduction of revenues in the Company’s consolidated statements of income, may be materially different than was initially recorded. The Company’s experience and extensive data accumulated historically indicates that these estimates have proven reliable over time.

Contract Acquisition Costs

In evaluating for recoverability, expected undiscounted net operating cash flows are estimated by management. The Company evaluates the carrying value of contract acquisition costs associated with each customer for impairment on the basis of whether these costs are fully recoverable from either contractual minimum fees (conversion costs) or from expected undiscounted net operating cash flows of the related contract (cash incentives paid). The determination of expected undiscounted net operating cash flows requires management to make estimates. If the actual cash flows are not consistent with the Company’s estimates, a material impairment charge may result and net income may be materially different than was initially recorded.

These costs may become impaired with the loss of a contract, the financial decline of a client, termination of conversion efforts after a contract is signed, or diminished prospects for current clients. Note 9 in the consolidated financial statements contains a

discussion of contract acquisition costs. The net carrying value of contract acquisition costs on the Company’s Consolidated Balance Sheet as of December 31, 2011 was $163.0 million.

Software Development Costs

In evaluating for recoverability, expected undiscounted net operating cash flows are estimated by management. The Company evaluates the unamortized capitalized costs of software development as compared to the net realizable value of the software product, which is determined by expected undiscounted net operating cash flows. The amount by which the unamortized software development costs exceed the net realizable value is written off in the period that such determination is made. If the actual cash flows are not consistent with the Company’s estimates, a material write-off may result and net income may be materially different than was initially recorded. Assumptions and estimates about future cash flows and remaining useful lives of our software are complex and subjective. They can be affected by a variety of factors, including industry and economic trends, changes in our business strategy, and changes in our internal forecasts. Note 8 in the consolidated financial statements contains a discussion of internally developed software costs. The net carrying value of internally developed software on the Company’s Consolidated Balance Sheet as of December 31, 2011 was $74.7 million.

Acquisitions — Purchase Price Allocation

TSYS’ purchase price allocation methodology requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities. TSYS estimates the fair value of assets and liabilities based upon appraised market

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values, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses. Management determines the fair value of fixed assets and identifiable intangible assets such as developed technology or customer relationships, and any other significant assets or liabilities. TSYS adjusts the purchase price allocation, as necessary, up to one year after the acquisition closing date as TSYS obtains more information regarding asset valuations and liabilities assumed. Unanticipated events or circumstances may occur which could affect the accuracy of the Company’s fair value estimates, including assumptions regarding industry economic factors and business strategies, and result in an impairment or a new allocation of purchase price.

Given its history of acquisitions, TSYS may allocate part of the purchase price of future acquisitions to contingent consideration as required by GAAP for business combinations. The fair value calculation of contingent consideration will involve a number of assumptions that are subjective in nature and which may differ significantly from actual results. TSYS may experience volatility in its earnings to some degree in future reporting periods as a result of these fair value measurements.

Goodwill

In evaluating for impairment, discounted net cash flows for future periods are estimated by management. In accordance with the provisions of ASC 350, “Intangibles — Goodwill and Other,” goodwill is required to be tested for impairment at least annually. The combination of the income approach utilizing the discounted cash flow (DCF) method and the market approach, utilizing readily available market valuation multiples, is used to estimate the fair value. Under the DCF method, the fair value of the asset reflects the present value of the projected earnings that will be generated by each asset after taking into account the revenues and expenses associated with the asset, the relative risk that the cash flows will occur, the contribution of other assets, and an appropriate discount rate to reflect the value of invested capital. Cash flows are estimated for future periods based on historical data and projections provided by management. If the actual cash flows are not consistent with the Company’s estimates, a material impairment charge may result and net income may be materially different than was initially recorded. Note 10 in the consolidated financial statements contains a discussion of goodwill. The net carrying value of

goodwill on the Company’s Consolidated Balance Sheet as of December 31, 2011 was $355.5 million.

Long-lived Assets and Intangibles

In evaluating for recoverability, expected undiscounted net operating cash flows are estimated by management. The Company reviews long-lived assets, such as property and equipment and intangibles subject to amortization, including contract acquisition costs and certain computer software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the actual cash flows are not consistent with the Company’s estimates, a material impairment charge may result and net income may be materially different than was initially recorded.

Revenue Recognition

Revenue is recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. In situations where contractual provisions are such that the fees are not fixed or determinable, the Company recognizes revenue net of an allowance for refunds, processing errors or penalties, or other related customer credits based on historical experience. When a sale involves multiple deliverables, the deliverables in the arrangement are evaluated to determine the units of accounting and the entire fee from the arrangement is allocated to each unit of accounting based on the relative selling price of the underlying deliverables. Revenue is recognized when the revenue recognition criteria for each unit of accounting have been met.

Revenue recognition is affected by our determination of the number of deliverables in an arrangement, whether those deliverables may be separated into separate units of accounting, and our valuation of each unit of accounting which affects the amount of revenue allocated to each unit. Pursuant to Accounting Standards Codification (ASC) 605, Revenue Recognition, we use vendor-specific objective evidence of selling price (VSOE) when it

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exists to determine the amount of revenue to allocate to each unit of accounting. The Company establishes VSOE of selling price using the priced charged when the same service is sold separately. In certain situations, the Company does not have sufficient VSOE. In these situations, we considered whether sufficient third party evidence (TPE) of selling price existed for the Company’s services. However, the Company typically is not able to determine TPE and has not used this measure of selling price due to the unique and proprietary nature of some of its services and the inability to reliably verify relevant standalone competitor prices. When there is insufficient evidence of VSOE and TPE, we have made our best estimate of the standalone selling price (ESP) of that service for purposes of allocating revenue to each unit of accounting. When determining ESP, we use limited standalone sales data that do not meet the Company’s criteria to establish VSOE, management pricing strategies, residual selling price data when VSOE exists for a group of elements, and margin objectives. Consideration is also given to geographies in which the services are sold or delivered, customer classifications, and market conditions including competitor pricing strategies and benchmarking studies.

As our business and service offerings change in the future, our determination of the number of deliverables in an arrangement and related units of accounting and our future pricing practices may result in changes in our estimates of VSOE and ESP, which may change the ratio of fees allocated to each service or unit of accounting in a given customer arrangement. There were no material changes in revenue recognition in the year ended December 31, 2011 due to any potential changes in our determination of the number of deliverables in an arrangement, units of accounting, or estimates of VSOE or ESP, nor do we expect a material impact to revenue in the year ended December 31, 2012 due to changes in these judgments and estimates.

Reserve for Merchant Losses

The Company has potential liability for losses resulting from disputes between a cardholder and a merchant that arise as a result of, among other things, the cardholder’s dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. If the merchant is unable to fund the refund, TMS must do so. TMS also bears the risk of reject losses arising from the fact that TMS collects fees from its merchants on the first day after the monthly billing period. If the merchant has gone out of business during such period, TMS may be unable to collect such fees. TMS maintains cash deposits or requires the pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. Most chargeback and reject losses are charged to cost of services as they are incurred. However, the Company also maintains a reserve against losses, including major fraud losses, which are both less predictable and involve larger amounts. The loss reserve was established using historical loss rates, applied to recent bankcard processing volume. At December 31, 2011, the Company had a merchant loss reserve in the amount of $397,000.

Transaction Processing Provisions

The Company records estimates to accrue for contract contingencies (performance penalties) and processing errors. A significant number of the Company’s contracts with large clients contain service level agreements which can result in TSYS incurring performance penalties if contractually required service levels are not met. When estimating these accruals, the Company takes into consideration such factors as the prior history of performance penalties and processing errors incurred, actual contractual penalties inherent in the Company’s contracts, progress towards milestones, and known processing errors not covered by insurance. If the actual performance penalties incurred are not

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consistent with the Company’s estimates, performance penalties and processing errors, which is recorded in cost of services, may be materially different than was initially recorded. The Company’s experience and extensive data accumulated historically indicates that these estimates have proven reliable over time.

Income Taxes

In calculating its effective tax rate, the Company makes decisions regarding certain tax positions, including the timing and amount of deductions and allocations of income among various tax jurisdictions. The Company has various tax filing positions, including the timing and amount of deductions and credits, the establishment of reserves for audit matters and the allocation of income among various tax jurisdictions.

The Company makes estimates as to the amount of deferred tax assets and liabilities and records valuation allowances to reduce its deferred tax assets to reflect the amount that is more likely than not to be realized. The Company considers projected future taxable income and ongoing tax planning strategies in assessing the need for the valuation allowance. Actual results may differ from the Company’s estimates. If the Company realizes a deferred tax asset or the Company was unable to realize a net deferred tax asset, an adjustment to the deferred tax asset would increase or decrease earnings, respectively, in the period the difference is recognized.

Related Party Transactions

The Company provides electronic payment processing and other services to the Company’s equity investments, Total System Services de México, S.A. de C.V. (TSYS de México) and China UnionPay Data Co., Ltd. (CUP Data).

The related party services are performed under contracts that are similar to its contracts with unrelated third party customers. The Company believes the terms and conditions of transactions between the Company and these related parties are comparable to those which could have been obtained in transactions with unaffiliated parties. The Company’s margins with respect to related party transactions are comparable to margins recognized in transactions with unrelated third parties. The amounts related to these transactions are immaterial. No significant changes have been made to the method

of establishing terms with the affiliated companies during the periods presented.

Refer to Note 4 in the consolidated financial statements for more information on transactions with affiliated companies.

Off-Balance Sheet Arrangements

OPERATING LEASES:    As a method of funding its operations, TSYS employs noncancelable operating leases for computer equipment, software and facilities. These leases allow the Company to provide the latest technology while avoiding the risk of ownership. Neither the assets nor obligations related to these leases are included on the balance sheet. Refer to Notes 1 and 19 in the consolidated financial statements for further information on operating lease commitments.

CONTRACTUAL OBLIGATIONS:    The total liability for uncertain tax positions under ASC 740, “Income Taxes,” at December 31, 2011 is $5.7 million. Refer to Note 20 in the consolidated financial statements for more information on income taxes. The Company is not able to reasonably estimate the amount by which the liability will increase or decrease over time; however, at this time, the Company does not expect any significant changes related to these obligations within the next year.

Recent Accounting Pronouncements

ASU 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income” in Accounting Standards Update No. 2011-05

In December 2011, the FASB issued ASU 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income” in Accounting Standards Update No. 2011-05, which defers the requirement under ASU 2011-05, “Presentation of Comprehensive Income,” to present items that are reclassified from accumulated other comprehensive income to net income separately with their respective components of net income and other comprehensive income (for both interim and annual financial statements). All other requirements in ASU 2011-05 are not affected by this update. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.

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ASU 2011-08, “Testing Goodwill for Impairment”

In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment,” which amends ASC Topic 350, “Intangibles – Goodwill and Other.” ASU 2011-08 permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, and early adoption is permitted. The Company has determined the impact of adopting ASU 2011-08 on its financial position, results of operations and cash flows to be immaterial.

ASU 2011-05, “Presentation of Comprehensive Income”

In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income.” ASU 2011-05 amends ASC Topic 220, “Comprehensive Income,” and eliminates the option in US GAAP to present other comprehensive income in the statement of changes in equity. An entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. It is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. The Company has determined the impact of adopting ASU 2011-05 on its financial position, results of operations and cash flows to be immaterial.

ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S.GAAP and IFRSs”

In May 2011, the FASB issued ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs,” to converge fair value measurement and disclosure guidance in US GAAP with the guidance in the International Accounting Standards Board’s (“IASB”) concurrently issued IFRS 13, Fair Value Measurement. It is prospectively effective for interim and annual periods beginning after December 15, 2011, and early adoption is not permitted. The Company has determined the impact of adopting ASU 2011-04 on its financial position, results of operations and cash flows to be immaterial.

ASU 2009-13, “Multiple-Deliverable Revenue Arrangement,”

In October 2009, the FASB issued ASU 2009-13, “Multiple-Deliverable Revenue Arrangements,” an update to ASC Topic 605, “Revenue Recognition,” and formerly known as EITF 08-1, “Revenue Arrangements with Multiple Deliverables.” ASU 2009-13 amends ASC 650-25 to revise the guidance for determining whether multiple deliverables in an arrangement can be separated for revenue recognition and how the consideration should be allocated. It eliminates the use of the residual method of revenue recognition and the requirement that all undelivered elements have vendor-specific objective evidence (VSOE) or third-party evidence (TPE) of fair value before an entity can separate its deliverables for revenue recognition. The revised guidance requires the allocation of vendor consideration to each deliverable using the relative selling price method. The selling price for each deliverable is based on VSOE if available, TPE if VSOE is not available, or best estimated selling price (ESP) if neither VSOE nor TPE is available. Effective January 1, 2011, the Company adopted the provisions of ASU 2009-13 on a prospective basis for all new and materially modified arrangements.

The Company’s North America and International Services revenues are derived from long-term payment processing contracts with financial and nonfinancial institutions and are generally recognized as the services are performed. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements mailed, cards embossed and mailed and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual revenue minimums, penalties for early termination, and service level agreements which may impact contractual fees if certain service levels are not achieved. Revenue is recognized as the services are performed, primarily on a per unit basis. Processing contracts generally range from three to ten years in length and provide for penalties for early termination. When providing payment processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, web-based services, and other payment processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract.

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The Company’s Merchant Services revenues are derived from long-term processing contracts with large financial institutions, other merchant acquirers and merchant organizations which generally range from three to eight years and provide for penalties for early termination. Merchant services revenue is generated primarily from processing all payment forms including credit, debit, electronic benefits transfer and check truncation for merchants of all sizes across a wide array of retail market segments. The products and services offered include authorization and capture of electronic transactions, clearing and settlement of electronic transactions, information reporting services related to electronic transactions, merchant billing services, and point-of-sale terminal services. Revenue is recognized for merchant services as those services are performed, primarily on a per unit basis. When providing merchant processing services, the Company frequently enters into customer arrangements to provide multiple services that may also include conversion or implementation services, business process outsourcing services such as call center services, terminal services, and other merchant processing-related services. Revenue for these services is generally recognized as they are performed on a per unit basis each month or ratably over the term of the contract.

The Company recognizes revenues in accordance with the provisions of Staff Accounting Bulletin (“SAB”) No. 104. SAB No. 104 sets forth guidance as to when revenue is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience. In many situations, the Company enters into arrangements with customers to provide conversion or implementation services in addition to processing services where the conversion or implementation services do not have standalone value. In these situations, the deliverables do not meet the criteria of ASC 605-25 for separation and the deliverables are combined as a single unit of accounting for revenue recognition. For these arrangements, conversion or implementation services revenue is recognized as the related processing services are performed, and revenue continues to be recognized in a single unit of accounting upon adoption of ASU 2009-13 in 2011.

The Company’s other services generally have standalone value and constitute separate units of accounting for revenue recognition purposes. However, customer arrangements entered into prior to January 1, 2011 often included services for which sufficient objective and reliable evidence of fair value did not exist. In certain situations, sufficient objective and reliable evidence of fair value did not exist for multiple undelivered services, and the deliverables were combined and recognized as a single unit of accounting based on the proportional performance for the combined unit. Beginning on January 1, 2011, services in new or materially modified arrangements of this nature are now divided into separate units of accounting and revenue is allocated to each unit based on the relative selling price method. As the services in these arrangements are generally delivered over the same term with consistent patterns of performance, there is no change in the timing or pattern of revenue recognition upon adoption of ASU 2009-13, and it is not expected to have a material effect on revenue recognition for these arrangements in future periods.

In certain situations, VSOE existed for all but one of the shorter services (for which standalone value existed), and the Company allocated revenue to each of the deliverables under the residual method of accounting whereby the difference between the total arrangement consideration and VSOE for the undelivered services was allocated to the other service. While there is no change in the units of accounting for these arrangements, beginning on January 1, 2011, revenue for services in new or materially modified arrangements of this nature will be allocated based on the relative selling price method. The residual amount of revenue historically allocated to the shorter services in these arrangements is generally consistent with our best estimate of selling price for those services. In situations where this may not have been the case, services in these arrangements were delivered over the same term with consistent patterns of performance. Accordingly, there is no change in the pattern of revenue recognition upon adoption of ASU 2009-13, and it is not expected to have a material effect on revenue recognition for these arrangements in future periods.

In many situations, VSOE exists for the Company’s payment processing services and certain other processing-related services. The Company establishes VSOE of selling price using the priced charged when the same service is sold separately. In certain situations, the Company does not have sufficient VSOE based on its related accounting

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policy due to limited standalone sales of certain services for a particular group of customers, limited sales history for certain services, and/or disparity in pricing for a given service. In these situations, we considered whether sufficient TPE of selling price existed for the Company’s services. TPE is established by evaluating similar or interchangeable competitor products or services in standalone sale to similarly situated customers. The Company typically is not able to determine TPE and has not used this measure of selling price due to the unique and proprietary nature of some of its services and the inability to reliably verify relevant standalone competitor prices. ESP has been established in these situations using limited standalone sales that do not meet the Company’s criteria to establish VSOE, management pricing strategies, residual selling price data when VSOE exists for a group of elements, and margin objectives. Consideration is also given to geographies in which the services are sold or delivered, customer classifications, and market conditions including competitor pricing strategies and benchmarking studies.

The Company’s multiple element arrangements may include one or more elements that are subject to other topics including software revenue recognition and leasing guidance. The consideration for these multiple element arrangements is allocated to each group of deliverables – those subject to ASC 605-25 and those subject to other topics based on the revised guidance in ASC 2009-13. Arrangement revenue for each group of deliverables is then further separated, allocated, and recognized based on applicable guidance.

The Company regularly reviews the evidence of selling price for its services and maintains internal controls over the establishment and updates of these estimates. There were no material changes in estimated selling price for its services during the year and the Company does not expect a material impact from changes in selling price in the foreseeable future.

If the Company were to apply the new revenue recognition guidance as if it had early adopted the guidance for the year ended December 31, 2010, there would have been no material impact to revenue in the earlier period. As previously disclosed, there were changes to the units of accounting and changes in the way arrangement consideration is allocated for certain types of the Company’s arrangements; however, the adoption of ASU 2009-13 did not have a material impact on revenue for the year ended December 31, 2011 when compared to the revenue that would have been recognized under the guidance in effect prior to adoption of ASU 2009-13. The impact of adopting this guidance in future periods will depend on the nature of the Company’s customer arrangements in those periods, including the nature of products and services included in those arrangements, the magnitude of revenue associated with certain deliverables in those arrangements, and the timing of delivery of the related products or services in those arrangements, among other considerations. While the impact in future periods is dependent on these factors and future go-to-market strategies, the Company does not currently expect the adoption of this guidance to have a material impact on the timing and pattern of revenue recognition in future periods. The Company does not expect this new guidance to impact future pricing practices or go-to-market strategies.

Results of Operations

Revenues

The Company generates revenues by providing transaction processing and other payment-related services. The Company’s pricing for transactions and services is complex. Each category of revenue has numerous fee components depending on the types of transactions processed or services provided. TSYS reviews its pricing and implements pricing changes on an ongoing basis. In addition, standard pricing varies among its regional businesses, and such pricing can be customized further for customers through tiered pricing of various thresholds for volume activity. TSYS’ revenues are based upon transactional information accumulated by its systems or reported by its customers. The Company’s revenues are impacted by currency translation of foreign operations, as well as doing business in the current economic environment. Of the total revenue increase of 5.3% for the year ended December 31, 2011, the Company estimates revenues increased by a net 0.3% due to foreign currency exposure and pricing, 2.5% due to the impact of acquisitions and increased 2.5% for volume changes.

TSYS’ revenues are generated primarily from charges based on the number of accounts on file (AOF), transactions and authorizations processed, statements mailed, cards embossed and mailed, and other processing services for cardholder AOF. Cardholder AOF include active and inactive consumer credit, retail, debit, stored value, government services and commercial card accounts.

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TSYS’ payment processing revenues are influenced by several factors, including volumes related to AOF and transactions. TSYS estimates that approximately 53% of total payment processing revenues is AOF and transaction volume driven, and are driven primarily from processing services. The remaining 47% of payment processing revenues are not AOF and transaction volume driven, and are derived from production and optional services TSYS considers to be value added products and services, custom programming and licensing arrangements.

Whether or not an account on file is active can impact TSYS’ revenues differently. Active accounts are accounts that have had monetary activity either during the current month or in the past 90 days based on contractual definition. Inactive accounts are accounts that have not had a monetary transaction (such as a purchase or payment) in the past 90 days. The more active an account is, the more revenue is generated for TSYS (items such as transaction and authorizations processed and statements billed).

Occasionally, a client will purge inactive accounts from its portfolio. An inactive account typically will only generate an AOF charge. A processing client will periodically review its cardholder portfolio based upon activity and usage. Each client, based upon criteria individually set by the client, will flag an account to be “purged” from TSYS’ system and deactivated.

A deconversion involves a client migrating all of its accounts to an in-house solution or another processor. Account deconversions include active and inactive accounts and can impact the Company’s revenues significantly more than an account purge.

A sale of a portfolio typically involves a client selling a portion of its accounts to another party. A sale of a portfolio and a deconversion impact the Company’s financial statements in a similar fashion, although a sale usually has a smaller financial impact due to the number of accounts typically involved.

A summary of the consolidated financial highlights for the years ended December 31, 2011, 2010 and 2009 is provided below:

	Years Ended December 31,						Percent Change
(in millions, except per share data)	2011		2010		2009		2011 vs. 2010			2010 vs. 2009
Total revenues	$	1,809.0		1,717.6		1,677.5		5.3	%		2.4	%
Operating income		322.5		309.4		344.0		4.2			(10.1	)
Net income attributable to TSYS common shareholders		220.6		193.9		215.2		13.7			(9.9	)
Basic EPS(1) attributable to TSYS common shareholders:
Income from continuing operations		1.15		1.00		1.12		14.4			(10.7	)
Net income		1.15		0.99		1.09		16.3			(9.5	)
Diluted EPS(1)attributable to TSYS common shareholders:
Income from continuing operations		1.15		1.00		1.12		14.3			(10.8	)
Net income		1.15		0.99		1.09		16.2			(9.6	)
Cash flows from operating activities		435.9		389.2		423.1		12.0			(8.0	)
Key indicators:
AOF		404.2		342.9		344.8		17.9			(0.5	)
Cardholder transactions processed		8,687.8		7,670.4		7,272.9		13.3			5.5

(1) Basic and diluted EPS is computed based on the two-class method in accordance with the guidance under Accounting Standards Codification (ASC) 260. Refer to Note 26 in the consolidated financial statements for more information on earnings per share.

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Total revenues increased 5.3%, or $91.4 million, for the year ended December 31, 2011, compared to the year ended December 31, 2010, which increased 2.4%, or $40.1 million, compared to the year ended December 31, 2009. The increase in revenues for 2011 and 2010 include an increase of $16.8 million and $1.0 million, respectively, related to the effects of currency translation of the Company’s foreign-based subsidiaries and branches.

Excluding reimbursable items, revenues increased 6.8%, or $98.3 million, for the year ended December 31, 2011, compared to the year ended December 31, 2010, which increased 2.5%, or $35.1 million, compared to the year ended December 31, 2009. The Company expanded its product and service offerings through acquisitions during 2011 and 2010. The impact of these acquisitions on consolidated total revenues during the year of acquisition was $ 42.4 million and $97.7 million in 2011 and 2010, respectively.

Major Customer

A significant amount of the Company’s revenues is derived from long-term contracts with large clients, including a major customer. TSYS derives revenues from providing various processing and other services to these clients, including processing of consumer and commercial accounts, as well as revenues for reimbursable items. Revenues from the major customer for the periods reported are primarily attributable to the North America Services segment and Merchant Services segment. The loss of the Company’s major customer could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

In June 2009, Bank of America announced that it formed a new joint venture to provide merchant services. TSYS provides accounting, settlement, authorization and other services to Bank of America, which services accounted for approximately 4.9%, 6.0% and 5.3% of TSYS’ total revenues for 2011, 2010 and 2009, respectively.

TSYS provides a number of additional services to Bank of America, including commercial card processing, small business card processing and card production services. Approximately 44%, 46% and 40% of the total revenues derived from providing merchant services to Bank of America are attributable to reimbursable items for 2011, 2010 and 2009, respectively, which are provided at no margin.

In November 2010, TSYS and Bank of America agreed to a new agreement, during the term of which TSYS expects merchant services revenues from Bank of America to decline as Bank of America transitions its services to its new joint venture.

The loss of Bank of America as a merchant services client is not expected to have a material adverse effect on TSYS’ financial position, results of operations or cash flows.

Refer to Note 22 in the consolidated financial statements for more information on the major customer.

The Company works to maintain a large and diverse customer base across various industries. However, in addition to its major customer, the Company has other large clients representing a significant portion of its total revenues. The loss of any one of the Company’s large clients could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

Operating Segments

TSYS’ services are provided through three operating segments: North America Services, International Services and Merchant Services.

A summary of each segment’s results follows:

North America Services

The North America Services segment provides issuer account solutions for financial institutions and other

organizations primarily based in North America. Growth in revenues and operating profit in this segment is derived from retaining and growing the core business and improving the overall cost structure. Growing the core business comes primarily from an increase in account usage, growth from existing clients (also referred to as organic growth) and sales to new clients and the related account conversions.

This segment has many long-term customer contracts with card issuers providing account processing and

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output services for printing and embossing items. These contracts generally require advance notice prior to the end of the contract if a client chooses not to renew. Additionally, some contracts may allow for early termination upon the occurrence of certain events such as a change in control. The termination fees paid upon the occurrence of such events are designed primarily to cover balance sheet exposure related to items such as capitalized conversion costs or client incentives associated with the contract and, in some cases, may cover a portion of lost future revenue and profit. Although these contracts may be terminated upon certain occurrences, the contracts provide the segment with a steady revenue stream since the vast majority of the contracts are honored through the contracted expiration date.

This segment provides services throughout the period of each account’s use, starting from a card-issuing client processing an application for a card. Services may include processing the card application, initiating service for the cardholder, processing each card transaction for the issuing retailer or financial institution and accumulating the account’s transactions. The segment’s fraud management services monitor the unauthorized use of accounts which have been reported to be lost, stolen, or which exceed credit limits. The segment’s fraud detection systems help identify fraudulent transactions by monitoring each account holder’s purchasing patterns and flagging unusual purchases. Other services provided include customized communications to cardholders, information verification associated with granting credit, debt collection, and customer service.

This segment has two major customers. Below is a summary of the North America Services segment:

	Years Ended December 31,									Percent Change
(in millions)	2011			2010			2009			2011 vs. 2010			2010 vs. 2009
Total revenues	$	954.6			956.5			1,048.9			(0.2	)%		(8.8	)%
External revenues		930.7			927.6			1,016.3			0.3			(8.7	)
Reimbursable items		145.5			147.5			168.3			(1.4	)		(12.3	)
Operating income*		253.8			245.0			285.4			3.6			(14.2	)
Operating margin*		26.6	%		25.6	%		27.2	%
Key indicators:
AOF		351.4			296.7			305.2			18.5			(2.8	)
Transactions		7,261.2			6,410.6			6,136.9			13.3			4.5

* Note: Segment operating results do not include expenses associated with Corporate Administration. Refer to Note 22 for more information on operating segments.

The $3.1 million increase in segment external revenues for 2011, as compared to 2010, is attributable to a $1.6 million decrease in reimbursable items due to lost business and a $55.9 million decrease related to client deconversion, price reductions and termination fees. This decrease was offset by a $60.6 million increase in new business and internal growth. The $88.7 million decrease in segment external total revenues in 2010 as compared to 2009 is attributable to $20.0 million decrease in reimbursable items due to lost business, $97.1 million related to client deconversions and price compression. This decrease was partially offset by $28.4 million in new business and internal growth.

International Services

The International Services segment provides issuer card solutions to financial institutions and other organizations primarily based outside the North America region. Growth in revenues and operating profit in this segment is derived from retaining and growing the core business and improving the overall cost structure. Growing the core business comes primarily from an increase in account usage, growth from existing clients and sales to new clients and the related account conversions.

This segment has many long-term customer contracts with card issuers providing account processing and output services for printing and embossing items. These contracts generally require advance notice prior to the end of the contract if a client chooses not to renew. Additionally, some contracts may allow for early termination upon the occurrence of certain

`events such as a change in control. The termination fees paid upon the occurrence of such events are designed primarily to cover balance sheet exposure related to items such as capitalized conversion costs

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or client incentives associated with the contract and, in some cases, may cover a portion of lost future revenue and profit. Although these contracts may be terminated upon certain occurrences, the contracts provide the segment with a steady revenue stream since a vast majority of the contracts are honored through the contracted expiration date.

This segment has one major customer.

Below is a summary of the International Services segment:

	Years Ended December 31,									Percent Change
(in millions)	2011			2010			2009			2011 vs. 2010			2010 vs. 2009
Total revenues	$	394.8			335.0			337.8			17.9	%		(0.8	)%
External revenue		390.9			332.2			335.6			17.7			(1.0	)
Reimbursable items		14.7			13.1			15.1			10.7			(13.0	)
Operating income*		41.4			42.7			57.7			(3.0	)		(26.0	)
Operating margin*		10.5	%		12.7	%		17.1	%
Key indicators:
AOF		52.8			46.3			39.5			14.0			17.1
Transactions		1,426.6			1,259.9			1,136.0			13.3			10.9

* Note: Segment operating results do not include expenses associated with Corporate Administration. Refer to Note 22 for more information on operating segments.

The $58.7 million increase in segment external revenues for 2011, as compared to 2010, is attributable to a $42.1 million increase in new business and organic growth and a $16.8 million increase related to the impact of foreign currency translation, which is partially offset by lost business. The decrease in segment external total revenues for 2010, as compared to 2009, is driven by $19.8 million of lost business and price compression, partially offset by $26.2 million of new business and organic growth and $1.1 million increase related to the impact of foreign currency translation. The segment revenues for 2009 also included a deconversion fee received from a client for the discontinuance of an account portfolio.

TSYS will be terminating its Japan Gift Card program in June 2012 due to negative future cash flows resulting from the loss of two of its major customers. The program’s negative future cash flows indicate that the carrying value of its assets will not

be recovered. As a result, a provision for the program’s future losses was made and its assets were written down to zero.

Movements in foreign currency exchange rates as compared to the U.S. dollar can result in foreign denominated financial statements being translated into fewer U.S. dollars, which impact the comparison to prior periods when the U.S. dollar was weaker. For 2012, TSYS does not expect any significant movements from the rates that existed at December 31, 2011.

On March 11, 2011, an earthquake struck off the northeast coast of Japan, triggering a tsunami. TSYS’ operations in Japan were not directly impacted by the natural disaster.

Merchant Services

The Merchant Services segment provides merchant services and related services to clients based primarily in the United States. Merchant services revenues are derived from providing processing services, acquiring solutions, related systems and integrated support services to merchant acquirers and merchants. Revenues from merchant services include processing all payment forms including credit, debit, prepaid, electronic benefit transfer and electronic check for merchants of all sizes across a wide array of market verticals. Merchant services include authorization and capture of transactions; clearing and settlement of transactions; information reporting services related to transactions; merchant billing services; and point-of-sale equipment sales and service.

With the acquisitions of TMS and TermNet, the Company has expanded its service offerings to include merchant support and underwriting, and business and value-added services, as well as Visa- and Mastercard-branded prepaid cards for businesses of any size. Ranked as the 10^th-largest merchant acquirer in the United States by dollar volume (The Nilson Report, March 2011), TMS has a 57-year history in the acquiring industry with more than 300,000 merchant outlets in its diverse portfolio.

This segment has one major customer.

Below is a summary of the Merchant Services segment:

	Years Ended December 31,									Percent Change
(in millions)	2011			2010			2009			2011 vs. 2010			2010 vs. 2009
Total revenues	$	488.0			458.9			327.1			6.3	%		40.3	%
External revenue		487.4			457.8			325.6			6.5			40.6
Reimbursable items		114.8			121.7			94.8			(5.7	)		28.4
Operating income*		113.0			102.4			71.4			10.3			43.4
Operating margin*		23.2	%		22.3	%		21.8	%
Key indicator:
Point-of-sale transactions		4,955.5			5,315.4			5,194.4			(6.8	)		2.3

* Note: Segment operating results do not include expenses associated with Corporate Administration. Refer to Note 22 for more information on operating segments.

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The $29.6 million increase in segment external revenues for 2011, as compared to 2010, is attributable to a $42.4 million increase for acquisitions offset by lower volume, the impact of the Durbin amendment, deconversions, and price compression. The $132.2 million increase in segment external total revenues for 2010, as compared to 2009, is the result of $17.9 million of organic growth and $91.8 million net increase for acquisitions, and was partially offset by price compression and deconversions.

The Merchant Services segment results are driven by the authorization and capture transactions processed at the point-of-sale and clearing and settlement transactions at the end of the day. This segment’s authorization and capture transactions are primarily through dial-up or Internet connectivity. With the acquisition of TMS, dollar sales volume also drives the Merchant Services segment’s results.

Operating Expenses

The changes in cost of services, and selling, general and administrative expenses for the years ended December 31, 2011 and 2010 include an increase of $16.2 million and $1.6 million, respectively, related to the effects of currency translation of the Company’s foreign based subsidiaries and branches. The impact of acquisitions on consolidated total expenses was $39.1 million in 2011. The impact of acquisitions on consolidated total expenses was $83.1 million in 2010, including $4.1 million of professional and legal fees associated with the acquisition of TMS.

In February 2010, the Company reduced its overall workforce by approximately 5%, primarily from the U.S., through a targeted workforce reduction and attrition. Some positions were eliminated and some employees were terminated with severance.

Federal legislation was recently enacted which makes extensive changes to the current system of health care insurance and benefits. The Company has reviewed the legislation and, based upon information available, estimates the impact of the legislation on 2011 was approximately $1.4 million.

Nonoperating Income (Expense)

Nonoperating income (expense) consists of interest income, interest expense and gains and losses on currency translations. Nonoperating income decreased in 2011 as compared to 2010, and increased in 2010 as compared to 2009.

Interest income for 2011 was $620,000, a 2.8% decrease compared to $638,000 in 2010, which was a 65.7% decrease compared to $1.9 million in 2009. The variation in interest income is primarily attributable to changes in short-term interest rates in 2010 and 2009 and the amount of cash available for investments.

Interest expense for 2011 was $3.2 million, an increase of $348,000 compared to $2.9 million in 2010, which was a decrease of $1.2 million compared to $4.1 million in 2009. The increase in interest expense in 2011 compared to 2010 is attributable to additional debt borrowings during the fourth quarter of 2010. The decrease in interest expense in 2010 compared to 2009 is attributable to the changes in interest rates.

For the years ended December 31, 2011, 2010 and 2009, the Company recorded a translation loss of approximately $3.1 million, $162,000 and $2.6 million, respectively, related to intercompany loans and foreign denominated cash and accounts receivable balances.

Income Taxes

Income tax expense was $102.6 million, $106.1 million, and $121.9 million in 2011, 2010 and 2009, respectively, representing effective income tax rates of 31.6%, 34.9%, and 35.4%, respectively. The calculation of the effective tax rate excludes noncontrolling interest in consolidated subsidiaries’ net income and includes equity in income of equity investments in pretax income.

During 2011, the Company generated foreign net operating loss benefits and state tax credits in excess of its utilization capacity based on both the Company’s current operations and with consideration of future tax planning strategies. Based upon these same considerations, the Company reassessed its need for valuation allowances in other foreign jurisdictions. Accordingly, the Company experienced

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a net increase in its valuation allowance for deferred income tax assets of $3.8 million.

TSYS has adopted the permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain foreign subsidiaries. As a result, TSYS considers foreign earnings related to these foreign operations to be permanently reinvested. No provision for U.S. federal and state incomes taxes has been made in our consolidated financial statements for those non-U.S. subsidiaries whose earnings are considered to be reinvested. The amount of undistributed earnings considered to be “reinvested” which may be subject to tax upon distribution was approximately $51.2 million at December 31, 2011. Although TSYS does not intend to repatriate these earnings, a distribution of these non-U.S. earnings in the form of dividends, or otherwise, would subject the Company to both U.S. federal and state income taxes, as adjusted for non-U.S. tax credits, and withholding taxes payable to the various non-U.S. countries. Determination of the amount of any unrecognized deferred income tax liability on these undistributed earnings is not practicable.

In 2011, TSYS reassessed its contingencies for foreign, federal and state exposures, which resulted in a net increase in tax contingency amounts of approximately $1.2 million.

Equity in Income of Equity Investments

TSYS’ share of income from its equity in equity investments was $8.7 million, $7.1 million, and $7.0 million for 2011, 2010 and 2009, respectively. Refer to Note 11 in the consolidated financial statements for more information on equity investments.

Loss from Discontinued Operations, net of tax

Loss from discontinued operations, net of tax contains the operating results of TSYS Total Debt Management Inc. (TDM) and TSYS POS Systems and Services, LLC (TPOS) and the loss on the sale of both subsidiaries. Refer to Note 2 in the consolidated financial statements for more information on discontinued operations.

Net Income

Net income increased 8.3% to $222.7 million in 2011, compared to 2010. In 2010, net income decreased

6.2% to $205.6 million, compared to $219.2 million in 2009.

Net income attributable to TSYS common shareholders increased 13.7% to $220.6 million (basic and diluted EPS of $1.15) in 2011, compared to 2010. In 2010, net income attributable to TSYS common shareholders decreased 9.9% to $193.9 million (basic and diluted EPS of $0.99), compared to $215.2 million (basic and diluted EPS of $1.09) in 2009.

Non-GAAP Financial Measures

Management evaluates the Company’s operating performance based upon operating and net profit margins excluding reimbursable items, a non-generally accepted accounting principles (non-GAAP) measure. TSYS also uses these non-GAAP financial measures to evaluate and assess TSYS’ financial performance against budget. TSYS believes that these non-GAAP financial measures are important to enable investors to understand and evaluate its ongoing operating results.

TSYS believes that these non-GAAP financial measures are representative measures of comparative financial performance that reflect 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 these 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 in order to allow shareholders and potential investors an opportunity to see TSYS as viewed by management, assess TSYS with some of the same tools that management utilizes internally and compare such information with prior periods.

Profit Margins and Reimbursable Items

Management believes that operating and net profit margins excluding reimbursable items are more useful because reimbursable items do not impact profitability as the Company receives reimbursement for expenses incurred on behalf of its clients. TSYS

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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 these non-GAAP financial measures provides investors with more information to help them better understand its financial statements just as management utilizes these non-GAAP financial measures to better understand the business, measure performance and allocate its resources.

Below is the reconciliation between reported margins and adjusted margins excluding reimbursable items for the years ended December 31, 2011, 2010 and 2009:

	Years Ended December 31,
(in thousands)	2011			2010			2009
Operating income	$	322,456			309,429			344,026
Net income	$	222,662			205,621			219,176
Total revenues	$	1,808,966			1,717,577			1,677,483
Less reimbursable items		268,268			275,141			270,178
Revenues before reimbursable items	$	1,540,698			1,442,436			1,407,305
Operating margin (as reported)		17.8	%		18.0	%		20.5	%
Net profit margin (as reported)		12.3	%		12.0	%		13.1	%
Adjusted operating margin		20.9	%		21.5	%		24.4	%
Adjusted net profit margin		14.5	%		14.3	%		15.6	%

Projected Outlook for 2012

As compared to 2011, TSYS expects its 2012 income from continuing operations to increase by 8%-10%, its EPS from continuing operations available to TSYS common shareholders to increase by 10%-12%, its revenues before reimbursable items to increase by 2%-5% and its total revenues to increase by 0%-2%, based on the following assumptions with respect to 2012: (1) there will be no significant movements in LIBOR and TSYS will not make any significant draws on the remaining balance of its revolving credit facility; (2) there will be no significant movement in foreign currency exchange

rates related to TSYS’ business; (3) 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; (4) there will be no deconversions of large clients during the year; and (5) the economy will not worsen.

Financial Position, Liquidity and Capital Resources

The Consolidated Statements of Cash Flows detail the Company’s cash flows from operating, investing and financing activities. TSYS’ primary methods for funding its operations and growth have been cash generated from current operations, the use of leases and the occasional use of borrowed funds to supplement financing of capital expenditures.

Cash Flows from Operating Activities

	Years Ended December 31,
(in thousands)	2011		2010		2009
Net income	$	222,662		205,621		219,176
Depreciation and amortization		169,165		163,111		156,471
Net change in current and other assets and current and other liabilities		18,682		4,520		15,489
Other noncash items and charges, net		18,975		7,745		21,346
Dividends from equity investments		6,835		6,572		4,942
Loss on disposal of subsidiary		—		1,591		5,713
Net cash provided by operating activities	$	436,319		389,160		423,137

TSYS’ main source of funds is derived from operating activities, specifically net income. The increase in 2011, as compared to 2010, in net cash provided by operating activities was primarily the result of increased earnings and the net change in current and other assets and current and other liabilities. The decrease in 2010, as compared to 2009, in net cash provided by operating activities was primarily the result of decreased earnings and the net change in current and other assets and current and other liabilities.

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Net change in current and other assets and current and other liabilities include accounts receivable, prepaid expenses, other current assets and other assets, accounts payable, accrued salaries and employee benefits and other liabilities. The change in accounts receivable between the years is the result of timing of collections compared to billings. The change in accounts payable and other liabilities between years is the result of the timing of payments and funding of performance-based incentives.

Cash Flows from Investing Activities

	Years Ended December 31,
(in thousands)	2011			2010			2009
Cash used in acquisitions and equity investments, net of cash acquired	$	(47,909	)		(148,531	)		(294	)
Additions to contract acquisition costs		(31,623	)		(75,669	)		(35,596	)
Purchases of property and equipment, net		(26,938	)		(46,547	)		(34,017	)
Additions to licensed computer software from vendors		(19,502	)		(69,826	)		(20,059	)
Additions to internally developed computer software		(17,882	)		(25,466	)		(31,445	)
Proceeds from disposition, net of expenses paid and cash disposed		4,500			4,265			1,979
Other		(2,066	)		68			—
Net cash used in investing activities	$	(141,420	)		(361,706	)		(119,432	)

The major uses of cash for investing activities in 2011 were for the acquisition of all of TermNet’s outstanding stock, and additions to contract acquisition costs, equipment, licensed computer software from vendors and internally developed computer software. The main source of cash for investing activities in 2011 was cash from the sale of a trade name associated with the purchase of the remaining 49% interest in TMS. The major uses of cash for investing activities in 2010 were for the purchase of TMS, the purchase of property and equipment and additions to licensed computer software from vendors. The major uses of cash for investing activities in 2009 were for additions to

contract acquisition costs, equipment, licensed computer software from vendors and internally developed software.

Property and Equipment

Capital expenditures for property and equipment were $26.9 million in 2011, compared to $46.5 million in 2010 and $34.0 million in 2009. The majority of capital expenditures in 2011, 2010 and 2009 related to investments in new computer processing hardware. The decrease in capital expenditures in 2011, as compared to 2010, is attributable to the purchase of distributed systems software from a third-party vendor in 2010.

Licensed Computer Software from Vendors

Expenditures for licensed computer software from vendors were $19.5 million in 2011 compared to $69.8 million in 2010 and $20.1 million in 2009.

Internally Developed Computer Software Costs

Additions to capitalized software development costs, including enhancements to and development of processing systems, were $17.9 million in 2011, $25.5 million in 2010 and $31.4 million in 2009.

The Company remains committed to developing and enhancing its processing solutions to expand its service offerings. In addition to developing solutions, the Company has expanded its service offerings through strategic acquisitions, such as TermNet, TMS and Infonox.

Cash Used in Acquisitions

In May 2011, TSYS acquired TermNet for an aggregate consideration of $42.0 million. The Company has allocated approximately $28.9 million to goodwill. In May 2011, TSYS made a payment of $6.0 million of contingent merger consideration in connection with the purchase of Infonox on the Web (Infonox), which was accounted for under Statement of Financial Accounting Standard No. 141, “Business Combinations”. The payment of the contingent merger consideration by TSYS was recorded as goodwill and had no impact on our results of operations. In October 2011, TSYS acquired contract-based intangible assets in its merchant services segment for $2.6 million. In 2010, TSYS acquired TMS for an aggregate consideration of approximately $150.5 million. The Company has allocated approximately $155.5 million to goodwill. Refer to Note 24 in the consolidated financial statements for more information on acquisitions.

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Contract Acquisition Costs

TSYS makes cash payments for processing rights, third-party development costs and other direct salary-related costs in connection with converting new customers to the Company’s processing systems. The Company’s investments in contract acquisition costs were $31.6 million in 2011, $75.7 million in 2010 and $35.6 million in 2009. The Company made cash payments for processing rights of $5.2 million, $45.4 million and $9.3 million in 2011, 2010 and 2009, respectively. Conversion cost additions were $26.4 million, $30.3 million and $26.3 million in 2011, 2010 and 2009, respectively.

Purchase of Private Equity Investments

On May 31, 2011, the Company entered into a limited partnership agreement in connection with its agreement to invest in an Atlanta-based venture capital fund focused exclusively on investing in technology-enabled financial services companies. Pursuant to the limited partnership agreement, the Company has committed to invest up to $20 million in the fund so long as its ownership interest in the fund does not exceed 50%. In 2011, the Company made investments in the fund of $1.6 million.

Cash Flows from Financing Activities

	Years Ended December 31,
(in thousands)	2011			2010			2009
Purchase of noncontrolling interests	$	(174,050	)		—			—
Repurchase of common stock		(121,271	)		(46,228	)		(328	)
Principal payments on long-term debt borrowings and capital lease obligations		(28,892	)		(11,741	)		(18,869	)
Dividends paid on common stock		(53,949	)		(55,087	)		(55,208	)
Subsidiary dividends per share		(433	)		(9,031	)		(235	)
Proceeds from borrowings of long-term debt		—			39,757			5,334
Other		7,542			654			8
Net cash used in financing activities	$	371,053			(81,676	)		(69,298	)

The major uses of cash for financing activities have been the purchase of noncontrolling interests, payment of dividends, principal payment on capital lease and software obligations and the purchase of stock under the stock repurchase plan as described below. The main source of cash from financing activities has been the use of borrowed funds. Net cash used in financing activities for the year ended December 31, 2011 was $370.7 million and was primarily the result of the acquisition of the remaining 49% interest in TMS, payment of dividends and the repurchase of common stock. Net cash used in financing activities for the year ended December 31, 2010 was $81.7 million and was primarily the result of payments of cash dividends and repurchase of common stock. The Company used $69.3 million in cash for financing activities for the year ended December 31, 2009 primarily for payments on long-term debt and capital lease obligations and the payments of cash dividends. Refer to Note 13 in the consolidated financial statements for more information on the long-term debt financing.

Redeemable Noncontrolling Interest

With the acquisition of TMS, the Company was a party to put and call arrangements with respect to the membership units that represented the remaining noncontrolling interest of FNMS Holding. The call and put arrangements could have been exercised at the discretion of TSYS or FNBO on April 1, 2015, 2016 and 2017, upon the dilution of FNBO’s equity ownership in FNMS Holding below a designated threshold and in connection with certain acquisitions by TSYS or FNMS Holding in excess of designated value thresholds.

The fair value of the noncontrolling interest in TMS, owned by a private company at December 31, 2010, was estimated by applying the income and market approaches. In particular, a discounted cash flow method, a guideline companies method, and a recent equity transaction were employed. This fair value measurement is based on significant inputs that are both observable (Level 2) and non-observable (Level 3) in the market as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant data and developed by Company management, (b) a discount rate of approximately 13%, (c) a terminal value based on a long-term sustainable growth rate of approximately 3%, (d) an effective tax rate of approximately 36%, (e) financial multiples of companies deemed to be similar to TMS, and (f) adjustments because of the lack of control or lack of marketability that market

27

participants would consider when estimating the fair value of the noncontrolling interest in TMS.

Refer to Note 24 of the Notes in the consolidated financial statements for more information on the acquisition of TMS.

Stock Repurchase Plan

On April 20, 2010, TSYS announced a stock repurchase plan to purchase up to 10 million shares of TSYS stock. The shares may be purchased from time to time over the next two years at prices considered attractive to the Company. On May 3, 2011, TSYS announced that its Board had approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 10 million shares to up to 15 million shares of TSYS stock. The expiration date of the plan was also extended to April 30, 2013. Through December 31, 2011, the Company purchased 6.6 million shares for approximately $120.6 million, at an average price of $18.28. The Company has 5.3 million shares remaining under the plan. Refer to Note 17 of the Notes to the consolidated financial statements for more information on treasury stock.

Financing

In December 2010, TSYS obtained a $39.8 million note payable from a third-party vendor related to financing the purchase of distributed systems software.

In April 2009, the Company repaid its International Services’ loan of £1.3 million, or approximately $1.8 million, which it obtained in May 2008.

On October 31, 2008, the Company repaid its International Services’ loan of £33.0 million, or approximately $54.1 million, which it obtained in August 2007.

On October 30, 2008, the Company’s International Services segment obtained a credit agreement from a third-party to borrow up to approximately ¥2.0 billion, or $21 million, in a Yen-denominated three-year loan to finance activities in Japan. The rate is the London Interbank Offered Rate (LIBOR) plus 80 basis points. The Company initially made a draw of ¥1.5 billion, or approximately $15.1 million. In January 2009, the Company made an additional draw down of ¥250 million, or approximately $2.8 million. In April 2009, the Company made an additional draw down of ¥250 million, or approximately $2.5 million. On December 3, 2011, the Company modified its loan to extend the maturity date to November 5, 2014.

In December 2007, TSYS entered into a credit agreement with Bank of America N.A., Royal Bank of Scotland plc, and other lenders which provides for a $252.0 million five year unsecured revolving credit facility and a $168.0 million unsecured term loan. The proceeds from the credit facility will be used for working capital and other corporate purposes, including to finance the repurchase by TSYS of its capital stock. As of December 31, 2010, the Company has not drawn on the $252.0 million credit facility.

Refer to Note 13 in the consolidated financial statements for further information on TSYS’ long-term debt and financing arrangements.

Dividends

Dividends on common stock of $53.9 million were paid in 2011, compared to $55.1 million and $55.2 million in 2010 and 2009, respectively. The Company paid an annual dividend of $0.28 per share in 2011, 2010 and 2009, respectively. On October 25, 2011, TSYS announced that its Board of Directors approved a 42.9% increase in the regular quarterly dividend payable on the Company’s common stock from $0.07 per share to $0.10 per share, payable on January 3, 2012 to Shareholders of record as of the close of business on December 15, 2011.

Significant Noncash Transactions

During 2011, 2010 and 2009, the Company issued 206,000, 197,000, and 514,000 shares of common stock, respectively, to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued in the form of nonvested stock bonus awards for services to be provided in the future by such officers and employees. Beginning in 2011, the grants to the Board of Directors were fully vested on the date of grant. The market value of the common stock at the date of issuance is amortized as compensation expense over the vesting period of the awards.

Refer to Notes 16 and 23 in the consolidated financial statements for more information on share-based compensation and significant noncash transactions.

Additional Cash Flow Information

Off-Balance Sheet Financing

TSYS uses various operating leases in its normal course of business. These “off-balance sheet” arrangements obligate TSYS to make payments for

28

computer equipment, software and facilities. These computer and software lease commitments may be replaced with new lease commitments due to new technology. Management expects that, as these leases expire, they will be evaluated and renewed or replaced by similar leases based on need.

The following table summarizes future contractual cash obligations, including lease payments and software arrangements, as of December 31, 2011, for the next five years and thereafter:

	Contractual Cash Obligations Payments Due By Period
(in millions)	Total		1 Year or Less		2 - 3 Years		4 - 5 Years		After 5 Years
Operating leases	$	247		93		114		17		23
Debt obligations		220		181		39		—		—
Capital lease obligations		39		13		24		2		—
Total contractual cash obligations	$	506		287		177		19		23

Income Taxes

The total liability for uncertain tax positions under ASC 740, “Income Taxes,” at December 31, 2011 is $5.7 million. Refer to Note 20 in the consolidated financial statements for more information on income taxes. The Company is not able to reasonably estimate the amount by which the liability will increase or decrease over time; however, at this time, the Company does not expect any significant changes related to these obligations within the next year.

Foreign Operations

TSYS operates internationally and is subject to adverse movements in foreign currency exchange rates. TSYS does not enter into foreign exchange forward contracts to reduce its exposure to foreign currency rate changes; however, the Company continues to analyze the potential use of hedging instruments to safeguard it from significant foreign currency translation risks.

TSYS maintains operating cash accounts outside the United States. Refer to Note 3 in the Notes to Unaudited Condensed Consolidated Financial

Statements for more information on cash and cash equivalents. TSYS has adopted the permanent reinvestment exception under ASC 740 with respect to future earnings of certain foreign subsidiaries. While some of the foreign cash is available to repay intercompany financing arrangements, remaining amounts are not presently available to fund domestic operations and obligations without paying a significant amount of taxes upon its repatriation. Demand on the Company’s cash has increased as a result of its strategic initiatives. TSYS funds these initiatives through a balance of internally generated cash, external sources of capital, and, when advantageous, access to foreign cash in a tax efficient manner. Where local regulations limit an efficient intercompany transfer of amounts held outside of the U.S., TSYS will continue to utilize these funds for local liquidity needs. Under current law, balances available to be repatriated to the U.S. would be subject to U.S. federal income taxes, less applicable foreign tax credits. TSYS has provided for the U.S. federal tax liability on these amounts for financial statement purposes, except for foreign earnings that are considered permanently reinvested outside of the U.S. TSYS utilizes a variety of tax planning and financing strategies with the objective of having its worldwide cash available in the locations where it is needed.

Impact of Inflation

Although the impact of inflation on its operations cannot be precisely determined, the Company believes that by controlling its operating expenses and by taking advantage of more efficient computer hardware and software, it can minimize the impact of inflation.

Working Capital

TSYS may seek additional external sources of capital in the future. The form of any such financing will vary depending upon prevailing market and other conditions and may include short-term or long-term borrowings from financial institutions or the issuance of additional equity and/or debt securities such as industrial revenue bonds. However, there can be no assurance that funds will be available on terms acceptable to TSYS. Management expects that TSYS will continue to be able to fund a significant portion of its capital expenditure needs through internally generated cash in the future, as evidenced by TSYS’ current ratio of 1.7:1. At December 31, 2011, TSYS had working capital of $269.6 million, compared to $494.5 million in 2010 and $590.1 million in 2009.

29

Legal Proceedings

The Company is subject to various legal proceedings and claims and is also subject to information requests, inquiries and investigations arising out of the ordinary conduct of its business. The Company establishes reserves for litigation and similar matters when those matters present loss contingencies that TSYS determines to be both probable and reasonably estimable in accordance with ASC 450, “Contingencies.” In the opinion of management, based on current knowledge and in part upon the advise of legal counsel, all matters are believed to be adequately covered by insurance, or, if not covered, the possibility of losses from such matters are believed to be remote or such matters are of such kind or involve such amounts that would not have a material adverse effect on the financial position, results of operations or cash flows of the Company if disposed of unfavorably.

Forward-Looking Statements

Certain statements contained in this filing which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act (the Act). These forward-looking statements include, among others (i) TSYS’ expectation that the Durbin Amendment will not have a significant negative impact on TSYS’ business; (ii) TSYS’ expectation that the loss of Bank of America as a merchant services client will not have a material adverse effect on TSYS; (iii) TSYS’ expectation that it will be able to fund a significant portion of its capital expenditure needs through internally generated cash in the future; (iv) the Board’s intention to continue to pay cash dividends on TSYS stock; (v) TSYS’ belief with respect to contractual commitments, lawsuits, claims and other complaints; (vi) the expected financial impact of recent accounting pronouncements; (vii) TSYS’ expectation with respect to certain tax matters; (viii) TSYS’ expectation with respect to foreign currency exchange rates; (ix) TSYS’ earnings guidance for 2012 total revenues, revenues before reimbursable items, income from continuing operations and EPS from continuing operations, and the assumptions underlying such statements including, with respect to TSYS’ earnings guidance for 2012, during 2012 (a) the economy will not worsen (b) there will be no deconversions of large clients during the year; (c) there will be no significant movements in foreign currency exchange rates related to TSYS’ business (d) 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

(e) there will be no significant movements in LIBOR, and no significant draws on the remaining balance of TSYS’ revolving credit facility. In addition, certain statements in future filings by TSYS with the Securities and Exchange Commission, in press releases, and in oral and written statements made by or with the approval of TSYS which are not statements of historical fact constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenue, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of plans and objectives of TSYS or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “estimates,” “projects,” “plans,” “may,” “could,” “should,” “would,” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying these statements.

These statements are based upon 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. Many of these factors are beyond TSYS’ ability to control or predict. These factors include, but are not limited to:

• movements in LIBOR are greater than expected and draws on the revolving credit facility are greater than expected;

• TSYS incurs expenses associated with the signing of a significant client;

• internal growth rates for TSYS’ existing clients are lower than anticipated whether as a result of unemployment rates, card delinquencies and charge off rates or otherwise;

• TSYS does not convert and deconvert clients’ portfolios as scheduled;

• adverse developments with respect to foreign currency exchange rates;

• adverse developments with respect to entering into contracts with new clients and retaining current clients;

• continued consolidation and turmoil in the financial services industry throughout 2012, including the

30

• 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 clients and the nationalization or seizure by banking regulators of TSYS clients;

• the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on TSYS and 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;

• adverse developments with respect to the credit card industry in general, including a decline in the use of credit cards as a payment mechanism;

• TSYS is unable to successfully manage any impact from slowing economic conditions or consumer spending;

• the impact of potential and completed acquisitions, including the costs associated therewith and their being more difficult to integrate than anticipated;

• the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto;

• the impact of the application of and/or changes in accounting principles;

• TSYS’ inability to timely, successfully and cost- effectively improve and implement processing systems to provide new products, increased functionality and increased efficiencies;

• TSYS’ inability to anticipate and respond to technological changes, particularly with respect to e-commerce;

• successfully managing the potential both for patent protection and patent liability in the context of rapidly developing legal framework for expansive patent protection;

• the material breach of security of any of our systems;

• overall market conditions;

• the impact on TSYS’ business, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts;

• other risk factors described in the “Risk Factors” and other sections of TSYS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and other filings with the Securities and Exchange Commission; and

• TSYS’ ability to manage the foregoing and other risks.

These forward-looking statements speak only as of the date on which they are made and TSYS does not intend to update any forward-looking statement as a result of new information, future developments or otherwise.

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Consolidated Balance Sheets

	December 31,
(in thousands, except per share data)	2011			2010
Assets
Current assets:
Cash and cash equivalents (Note 5)	$	316,337			394,795
Restricted cash		—			434
Accounts receivable, net of allowance for doubtful accounts and billing adjustments of $4.1 million and $4.5 million at 2011 and 2010, respectively		248,541			237,646
Deferred income tax assets (Note 20)		12,872			11,090
Prepaid expenses and other current assets (Note 6)		72,431			77,848
Total current assets		650,181			721,813
Property and equipment, net of accumulated depreciation and amortization (Notes 7 and 22)		266,608			300,102
Computer software, net of accumulated amortization (Note 8)		215,244			246,424
Contract acquisition costs, net of accumulated amortization (Note 9)		162,987			166,251
Goodwill (Note 10)		355,498			320,399
Equity investments (Note 11)		82,924			77,127
Other intangible assets, net of accumulated amortization (Note 12)		81,250			83,118
Deferred income tax assets, net		4,069			2,704
Other assets		39,631			34,323
Total assets	$	1,858,392			1,952,261
Liabilities
Current liabilities:
Accrued salaries and employee benefits	$	33,004			27,414
Accounts payable (Note 4)		26,095			36,068
Current portion of long-term debt (Note 13)		181,251			39,557
Current portion of obligations under capital leases (Note 13)		14,363			13,191
Other current liabilities (Note 14)		125,863			111,040
Total current liabilities		380,576			227,270
Long-term debt, excluding current portion (Note 13)		39,104			194,703
Deferred income tax liabilities (Note 20)		32,889			42,547
Obligations under capital leases, excluding current portion (Note 13)		24,489			30,573
Other long-term liabilities		60,325			53,363
Total liabilities		537,383			548,456
Redeemable noncontrolling interest		—			146,000
Equity
Shareholders’ equity (Notes 15, 16, 17 and 18):
Common stock — $0.10 par value. Authorized 600,000 shares; 201,860 and 201,326 issued at 2011 and 2010, respectively; 189,031 and 194,528 outstanding at 2011 and 2010, respectively		20,186			20,133
Additional paid-in capital		125,948			119,722
Accumulated other comprehensive loss, net		(445	)		(2,585	)
Treasury stock (shares of 12,829 and 6,798 at 2011 and 2010, respectively)		(225,034	)		(115,449	)
Retained earnings		1,380,634			1,219,303
Total shareholders’ equity		1,301,289			1,241,124
Noncontrolling interests in consolidated subsidiaries		19,720			16,681
Total equity		1,321,009			1,257,805
Commitments and contingencies (Note 19)
Total liabilities and equity	$	1,858,392			1,952,261

See accompanying Notes to Consolidated Financial Statements

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Consolidated Statements of Income

	Years Ended December 31,
(in thousands, except per share data)	2011			2010			2009
Total revenues (Notes 4 and 22)	$	1,808,966			1,717,577			1,677,483
Cost of services		1,257,970			1,201,012			1,149,883
Selling, general and administrative expenses		228,540			207,136			183,574
Operating income		322,456			309,429			344,026
Nonoperating expenses		(5,905	)		(1,617	)		(3,441	)
Income from continuing operations before income taxes and equity in income of equity investments		316,551			307,812			340,585
Income taxes (Note 20)		102,597			106,088			121,850
Income from continuing operations before equity in income of equity investments		213,954			201,724			218,735
Equity in income of equity investments, net of tax (Note 11)		8,708			7,142			6,985
Income from continuing operations, net of tax		222,662			208,866			225,720
Loss from discontinued operations, net of tax		—			(3,245	)		(6,544	)
Net income		222,662			205,621			219,176
Net income attributable to noncontrolling interests		(2,103	)		(11,674	)		(3,963	)
Net income attributable to TSYS common shareholders	$	220,559			193,947			215,213
Basic earnings per share (EPS)* attributable to TSYS common shareholders (Note 26):
Income from continuing operations	$	1.15			1.00			1.12
Loss from discontinued operations		—			(0.02	)		(0.03	)
Net income	$	1.15			0.99			1.09
Diluted EPS* attributable to TSYS common shareholders:
Income from continuing operations	$	1.15			1.00			1.12
Loss from discontinued operations		—			(0.02	)		(0.03	)
Net income	$	1.15			0.99			1.09
Amounts attributable to TSYS common shareholders:
Income from continuing operations	$	220,559			197,192			221,757
Loss from discontinued operations		—			(3,245	)		(6,544	)
Net income	$	220,559			193,947			215,213

* Note: Basic and diluted EPS amounts for continuing operations and net income may not total due to rounding.

See accompanying Notes to Consolidated Financial Statements

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Consolidated Statements of Cash Flows

	Years Ended December 31,
(in thousands)	2011			2010			2009
Cash flows from operating activities:
Net income	$	222,662			205,621			219,176
Adjustments to reconcile net income to net cash provided by operating activities:
Net loss on foreign currency translation		3,091			162			2,607
Equity in income of equity investments, net of tax		(8,708	)		(7,142	)		(6,985	)
Dividends received from equity investments		6,835			6,572			4,942
Share-based compensation		16,477			15,832			16,128
Excess tax expense (benefit) from share-based payment arrangements		523			(111	)		(6	)
Depreciation and amortization		169,165			163,111			156,471
Amortization of debt issuance costs		160			154			154
Asset impairments		799			—			—
Provisions for (recoveries of ) bad debt expenses and billing adjustments		1,552			(798	)		6,381
Charges for transaction processing provisions		4,750			3,891			6,556
Deferred income tax expense (benefit)		1,491			(4,388	)		(3,864	)
(Gain) loss on disposal of equipment, net		(1,159	)		145			375
Loss on disposal of subsidiary		—			1,591			5,713
Changes in operating assets and liabilities:
Accounts receivable		(7,044	)		(7,138	)		10,807
Prepaid expenses, other current assets and other assets		23,099			(1,495	)		27,893
Accounts payable		(15,512	)		13,916			(11,883	)
Accrued salaries and employee benefits		4,492			(21,965	)		(11,697	)
Other current liabilities and other liabilities		13,646			21,202			369
Net cash provided by operating activities		436,319			389,160			423,137
Cash flows from investing activities:
Purchases of property and equipment, net		(26,938	)		(46,547	)		(34,017	)
Additions to licensed computer software from vendors		(19,502	)		(69,826	)		(20,059	)
Additions to internally developed computer software		(17,882	)		(25,466	)		(31,445	)
Proceeds from sale of trade name		4,500			—			—
Proceeds from disposition, net of expenses paid and cash disposed		—			4,265			1,979
Cash used in acquisitions and equity investments, net of cash acquired		(47,909	)		(148,531	)		(294	)
Purchase of private equity investments		(1,573	)		—			—
Dividends received from equity investments as return of capital		—			68			—
Subsidiary repurchase of noncontrolling interest		(493	)		—			—
Additions to contract acquisition costs		(31,623	)		(75,669	)		(35,596	)
Net cash used in investing activities		(141,420	)		(361,706	)		(119,432	)
Cash flows from financing activities:
Purchase of noncontrolling interest		(174,050	)		—			—
Repurchases of common stock		(121,271	)		(46,228	)		(328	)
Dividends paid on common stock		(53,949	)		(55,087	)		(55,208	)
Principal payments on long-term debt borrowings and capital lease obligations		(28,892	)		(11,741	)		(18,869	)
Subsidiary dividends paid to noncontrolling shareholders		(433	)		(9,031	)		(235	)
Excess tax expense (benefit) from share-based payment arrangements		(523	)		111			6
Proceeds from borrowings of long-term debt		—			39,757			5,334
Proceeds from exercise of stock options		8,065			543			2
Net cash used in financing activities		(371,053	)		(81,676	)		(69,298	)
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents		(2,304	)		(938	)		(4,470	)
Net increase (decrease) in cash and cash equivalents		(78,458	)		(55,160	)		229,937
Cash and cash equivalents at beginning of year		394,795			449,955			220,018
Cash and cash equivalents at end of year	$	316,337			394,795			449,955
Supplemental cash flow information:
Cash paid for interest	$	3,088			2,191			3,368
Cash paid for income taxes, net of refunds	$	82,084			122,173			104,004
Significant noncash transactions (Note 23)

See accompanying Notes to Consolidated Financial Statements

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Consolidated Statements of Equity and Comprehensive Income

				TSYS Shareholders
(in thousands, except per share data)	Redeemable Noncontrolling Interests			Common Stock				Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Retained Earnings			Noncontrolling Interests			Total Equity
				Shares		Dollars
Balance as of December 31, 2008	$	—			200,354	$	20,036		126,889			(6,627	)		(69,641	)		920,292			9,901		$	1,000,850
Comprehensive income:
Net income		—			—		—		—			—			—			215,213			3,963			219,176
Other comprehensive (loss) income (OCI), net of tax (Note 18):
Foreign currency translation		—			—		—		—			12,145			—			—			17			12,162
Change in accumulated OCI related to postretirement healthcare plans		—			—		—		—			155			—			—			—			155
Other comprehensive income																								12,317
Comprehensive income																								231,493
Common stock issued from treasury shares for exercise of stock options (Note 16)		—			—		—		(17	)		—			19			—			—			2
Common stock issued for nonvested awards (Note 16)		—			506		50		(50	)		—			—			—			—			—
Share-based compensation (Note 16)		—			—		—		16,225			—			—			—			—			16,225
Cash dividends declared ($0.28 per share)		—			—		—		—			—			—			(55,255	)		—			(55,255	)
Purchase of treasury shares (Note 17)		—			—		—		—			—			(328	)		—			—			(328	)
Subsidiary dividends paid to noncontrolling interests																					(235	)		(235	)
Tax shortfalls associated with share based payment arrangements		—			—		—		(3,305	)		—			—			—			—			(3,305	)
Balance as of December 31, 2009		—			200,860		20,086		139,742			5,673			(69,950	)		1,080,250			13,646			1,189,447
Fair value of non-controlling interest in TMS		145,659			—		—		(34,659	)		—			—			—			—			(34,659	)
Comprehensive income:
Net income		9,122			—		—		—			—			—			193,947			2,552			196,499
Other comprehensive (loss) income, net of tax (Note 18):
Foreign currency translation		—			—		—		—			(7,529	)		—			—			733			(6,796	)
Change in accumulated OCI related to postretirement healthcare plans		—			—		—		—			(729	)		—			—			—			(729	)
Other comprehensive income																								(7,525	)
Comprehensive income																								188,974
Common stock issued from treasury shares for exercise of stock options (Note 16)		—			—		—		(186	)		—			729			—			—			543
Common stock issued for nonvested awards (Note 16)		—			466		47		(47	)		—			—			—			—			—
Share-based compensation (Note 16)		—			—		—		15,796			—			—			—			—			15,796
Cash dividends declared ($0.28 per share)		—			—		—		—			—			—			(54,894	)		—			(54,894	)
Purchase of treasury shares (Note 17)		—			—		—		—			—			(46,228	)		—			—			(46,228	)
Subsidiary dividends paid to noncontrolling interests		(8,781	)		—		—		—			—			—			—			(250	)		(250	)
Tax shortfalls associated with share based payment arrangements		—			—		—		(924	)		—			—			—			—			(924	)
Balance as of December 31, 2010		146,000			201,326		20,133		119,722			(2,585	)		(115,449	)		1,219,303			16,681			1,257,805
Comprehensive income:
Net income		(1,364	)		—		—		—			—			—			220,559			3,467			224,026
Other comprehensive (loss) income, net of tax (Note 18):
Foreign currency translation		—			—		—		—			1,056			—			—			603			1,659
Change in accumulated OCI related to postretirement healthcare plans		—			—		—		—			1,056			—			—			—			1,056
Other comprehensive income																								2,715
Comprehensive income																								226,741
Common stock issued from treasury shares for exercise of stock options (Note 16)		—			—		—		(3,450	)		—			11,515			—			—			8,065
Common stock issued for nonvested awards (Note 16)		—			534		53		(53	)		—			—			—			—			—
Common stock issued from treasury shares for nonvested awards (Note 16)		—			—		—		(172	)		—			172			—			—			—
Share-based compensation (Note 16)		—			—		—		16,513			—			—			—			—			16,513
Cash dividends declared ($0.31 per share)		—			—		—		—			—			—			(59,228	)		—			(59,228	)
Purchase of treasury shares (Note 17)		—			—		—		—			—			(121,272	)		—			—			(121,272	)
Adjustment to fair value of non-controlling interest in TMS		29,414			—		—		(6,828	)		—			—			—			—			(6,828	)
Redemption of redeemable noncontrolling interests		(174,050	)		—		—		—			—			—			—			—			—
Subsidiary dividends paid to noncontrolling interests		—			—		—		—			—			—			—			(433	)		(433	)
Subsidiary repurchase of noncontrolling interests		—			—		—		77			28			—			—			(598	)		(493	)
Tax benefits associated with share based payment arrangements		—			—		—		139			—			—			—			—			139
Balance as of December 31, 2011	$	—			201,860	$	20,186		125,948			(445	)		(225,034	)		1,380,634			19,720		$	1,321,009

See accompanying Notes to Consolidated Financial Statements

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Notes to Consolidated Financial Statements

NOTE 1 Basis of Presentation and Summary of Significant Accounting Policies

BUSINESS:    Total System Services, Inc.’s (TSYS’ or the Company’s) revenues are derived from providing global payment provider services to financial and nonfinancial institutions, generally under long-term processing contracts. The Company’s services are provided through the Company’s three operating segments: North America Services, International Services and Merchant Services.

Through the Company’s North America Services and International Services segments, TSYS processes information through its cardholder systems to financial institutions throughout the United States and internationally. The Company’s North America Services segment provides these services to clients in the United States, Canada, Mexico and the Caribbean. The Company’s International Services segment provides services to clients in Europe, India, Middle East, Africa, Asia Pacific and Brazil. The Company’s Merchant Services segment provides merchant services to merchant acquirers and merchants in the United States.

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet Merchant Services, Inc. (TermNet), an Atlanta-based merchant acquirer.

On March 1, 2010, TSYS announced the signing of an Investment Agreement with First National Bank of Omaha (FNBO) to form a new joint venture company, First National Merchant Solutions, LLC (FNMS), of which TSYS would own 51%. FNMS offers transaction processing, merchant support and underwriting, and value-added services, as well as Visa- and MasterCard-branded prepaid cards for businesses of any size. FNMS is included in the Merchant Services segment. The effective date of the acquisition was April 1, 2010. On January 4, 2011, TSYS announced it had acquired effective January 1, 2011, the remaining 49% interest in FNMS from FNBO. The company has been rebranded as TSYS Merchant Solutions (TMS).

As a result of the sale of certain assets and liabilities of TSYS POS Systems and Services, LLC (TPOS) in 2010 and the sale of TSYS Total Debt Management, Inc. (TDM) in 2009, as discussed in Note 2, the Company’s financial statements reflect TPOS and

TDM as discontinued operations. The Company segregated the net assets, net liabilities and operating results from continuing operations in the Consolidated Balance Sheets and Consolidated Statements of Income for all periods presented.

ACQUISITIONS — PURCHASE PRICE ALLOCATION:    TSYS adopted revised generally accepted accounting principles (GAAP) relating to business combinations as of January 1, 2009. The revised guidance retains the purchase method of accounting for acquisitions and requires a number of changes to the previous guidance, including changes in the way assets and liabilities are recognized in purchase accounting. Other changes include requiring the recognition of assets acquired and liabilities assumed arising from contingencies, requiring the capitalization of in-process research and development at fair value, and requiring the expensing of acquisition-related costs as incurred.

TSYS’ purchase price allocation methodology requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities. TSYS estimates the fair value of assets and liabilities based upon appraised market values, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses. Management determines the fair value of fixed assets and identifiable intangible assets such as developed technology or customer relationships, and any other significant assets or liabilities. TSYS adjusts the purchase price allocation, as necessary, up to one year after the acquisition closing date as TSYS obtains more information regarding asset valuations and liabilities assumed. Unanticipated events or circumstances may occur which could affect the accuracy of the Company’s fair value estimates, including assumptions regarding industry economic factors and business strategies, and result in an impairment or a new allocation of purchase price.

Given its history of acquisitions, TSYS may allocate part of the purchase price of future acquisitions to contingent consideration as required by GAAP for business combinations. The fair value calculation of contingent consideration will involve a number of assumptions that are subjective in nature and which may differ significantly from actual results. TSYS may experience volatility in its earnings to some degree in future reporting periods as a result of these fair value measurements.

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PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION:    The accompanying consolidated financial statements of Total System Services, Inc. include the accounts of TSYS and its majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities as defined in accordance with the provisions of Accounting Standards Codification (ASC) 810, “Consolidation,” and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810.

RISKS AND UNCERTAINTIES AND USE OF ESTIMATES:    Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, lower than anticipated growth from existing clients, an inability to attract new clients and grow internationally, loss of a major customer or other significant client, loss of a major supplier, an inability to grow through acquisitions or successfully integrate acquisitions, an inability to control expenses, technology changes, the impact of the application of and/or changes in accounting principles, financial services consolidation, changes in regulatory requirements, a decline in the use of cards as a payment mechanism, disruption of the Company’s international operations, breach of the Company’s security systems, a decline in the financial stability of the Company’s clients and uncertain economic conditions. Negative developments in these or other risk factors could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

The Company has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates and assumptions are developed based upon all information available. Actual results could differ from estimated amounts.

CASH EQUIVALENTS:    Investments with a maturity of three months or less when purchased are considered to be cash equivalents.

RESTRICTED CASH:    Restricted cash balances relate to cash balances collected on behalf of customers and held in escrow. TSYS records a corresponding liability for the obligation to the customer which is reflected in other current liabilities in the accompanying consolidated balance sheets. In 2010, TSYS began shifting the responsibility for funds management for its clients to the client’s issuer bank. Therefore, client funds are no longer maintained in a TSYS bank account.

ACCOUNTS RECEIVABLE:    Accounts receivable balances are stated net of allowances for doubtful accounts and billing adjustments of $4.1 million and $4.5 million at December 31, 2011 and December 31, 2010, respectively.

TSYS records an allowance for doubtful accounts when it is probable that the accounts receivable balance will not be collected. When estimating the allowance for doubtful accounts, the Company takes into consideration such factors as its day-to-day knowledge of the financial position of specific clients, the industry and size of its clients, the overall composition of its accounts receivable aging, prior history with specific customers of accounts receivable write-offs and prior experience of allowances in proportion to the overall receivable balance. This analysis includes an ongoing and continuous communication with its largest clients and those clients with past due balances. A financial decline of any one of the Company’s large clients could have a material adverse effect on collectability of receivables and thus the adequacy of the allowance for doubtful accounts.

Increases in the allowance for doubtful accounts are recorded as charges to bad debt expense and are reflected in selling, general and administrative expenses in the Company’s consolidated statements of income. Write-offs of uncollectible accounts are charged against the allowance for doubtful accounts.

TSYS records an allowance for billing adjustments for actual and potential billing discrepancies. When estimating the allowance for billing adjustments, the Company considers its overall history of billing adjustments, as well as its history with specific clients and known disputes. Increases in the allowance for billing adjustments are recorded as a reduction of revenues in the Company’s

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consolidated statements of income and actual adjustments to invoices are charged against the allowance for billing adjustments.

PROPERTY AND EQUIPMENT:    Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over estimated useful lives of 5-40 years, computer and other equipment over estimated useful lives of 2-5 years, and furniture and other equipment over estimated useful lives of 3-15 years. The Company evaluates impairment losses on long-lived assets used in operations in accordance with the provisions of ASC 205, “Presentation of Financial Statements.”

All ordinary repairs and maintenance costs are expensed as incurred. Maintenance costs that extend the asset life are capitalized and amortized over the remaining estimated life of the asset.

LICENSED COMPUTER SOFTWARE:    The Company licenses software that is used in providing services to clients. Licensed software is obtained through perpetual licenses and site licenses and through agreements based on processing capacity (called “MIPS agreements”). Perpetual and site licenses are amortized using the straight-line method over their estimated useful lives which range from three to ten years. Software licensed under MIPS agreements is amortized using a units-of-production basis over the estimated useful life of the software, generally not to exceed ten years. At each balance sheet date, the Company evaluates impairment losses on long-lived assets used in operations in accordance with ASC 205.

ACQUISITION TECHNOLOGY INTANGIBLES:     These identifiable intangible assets are software technology assets resulting from acquisitions. These assets are amortized using the straight-line method over periods not exceeding their estimated useful lives, which range from five to nine years. The provisions of ASC 350, “Intangibles — Goodwill and Other,” require that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment in accordance with ASC 205. Acquisition technology intangibles net book values are included in computer software, net in the accompanying balance sheets. Amortization expenses are charged to cost of services in the Company’s consolidated statements of income.

SOFTWARE DEVELOPMENT COSTS:    In accordance with the provisions of ASC 985, “Software,” software development costs are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. At each balance sheet date, the Company evaluates the unamortized capitalized costs of software development as compared to the net realizable value of the software product which is determined by future undiscounted net cash flows. The amount by which the unamortized software development costs exceed the net realizable value is written off in the period that such determination is made. Software development costs are amortized using the greater of (1) the straight-line method over its estimated useful life, which ranges from three to ten years or (2) the ratio of current revenues to total anticipated revenue over its useful life.

The Company also develops software that is used internally. These software development costs are capitalized based upon the provisions of ASC 350. Internal-use software development costs are capitalized once: (1) the preliminary project stage is completed, (2) management authorizes and commits to funding a computer software project, and (3) it is probable that the project will be completed and the software will be used to perform the function intended. Costs incurred prior to meeting the qualifications are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. Internal-use software development costs are amortized using an estimated useful life of three to five years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of the planned project becoming doubtful or due to technological obsolescence of the planned software product.

CONTRACT ACQUISITION COSTS:    The Company capitalizes contract acquisition costs related to signing or renewing long-term contracts. The Company capitalizes internal conversion costs in accordance with the provisions of Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition” and ASC 605, “Revenue Recognition.” The capitalization of costs related to cash payments for rights to

38

provide processing services is capitalized in accordance with the provisions of ASC 605. All costs incurred prior to a signed agreement are expensed as incurred.

Contract acquisition costs are amortized using the straight-line method over the expected customer relationship (contract term) beginning when the client’s cardholder accounts are converted and producing revenues. The amortization of contract acquisition costs associated with cash payments for client incentives is included as a reduction of revenues in the Company’s consolidated statements of income. The amortization of contract acquisition costs associated with conversion activity is recorded as cost of services in the Company’s consolidated statements of income.

The Company evaluates the carrying value of contract acquisition costs associated with each customer for impairment on the basis of whether these costs are fully recoverable from either contractual minimum fees (contractual costs) or from expected undiscounted net operating cash flows of the related contract (cash incentives paid). The determination of expected undiscounted net operating cash flows requires management to make estimates. These costs may become impaired with the loss of a contract, the financial decline of a client, termination of conversion efforts after a contract is signed, diminished prospects for current clients or if the Company’s actual results differ from its estimates of future cash flows. The amount of the impairment is written off in the period that such a determination is made.

EQUITY INVESTMENTS:    TSYS’ 49% investment in Total System Services de México, S.A. de C.V. (TSYS de México), an electronic payment processing support operation located in Toluca, Mexico, is accounted for using the equity method of accounting, as is TSYS’ 44.56% investment in China UnionPay Data Co., Ltd. (CUP Data) headquartered in Shanghai, China. TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments.

GOODWILL:    Goodwill results from the excess of cost over the fair value of net assets of businesses acquired.

Goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually in accordance with the provisions of ASC 350. ASC 350 also requires that intangible assets with estimable useful lives be amortized over their respective

estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 205.

The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with the provisions of ASC 323, “Investments — Equity Method and Joint Ventures,” shall not be amortized. However, equity method goodwill shall not be reviewed for impairment in accordance with ASC 350, but instead should continue to be reviewed for impairment in accordance with paragraph 19(h) of ASC 323. Equity method goodwill, which is not reported as goodwill in the Company’s consolidated balance sheet, but is reported as a component of the equity investment, was $50.6 million at December 31, 2011.

At December 31, 2011, the Company had goodwill in the amount of $355.5 million. The Company performed its annual impairment analyses of its goodwill balance, and these tests did not indicate any impairment for the periods ended December 31, 2011, 2010 and 2009, respectively.

OTHER INTANGIBLE ASSETS:    Identifiable intangible assets relate primarily to customer relationships, covenants-not-to-compete, trade names and trade associations resulting from acquisitions. These identifiable intangible assets are amortized using the straight-line method over periods not exceeding the estimated useful lives, which range from three to ten years. ASC 350 requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 205. Amortization expenses are charged to selling, general and administrative expenses in the Company’s consolidated statements of income.

FAIR VALUES OF FINANCIAL INSTRUMENTS:     The Company uses financial instruments in the normal course of its business. The carrying values of cash equivalents, accounts receivable, accounts payable, accrued salaries and employee benefits, and other current liabilities approximate their fair value due to the short-term maturities of these assets and liabilities. The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value.

Investments in equity investments are accounted for using the equity method of accounting and pertain to

39

privately held companies for which fair value is not readily available. The Company believes the fair values of its investments in equity investments exceed their respective carrying values.

IMPAIRMENT OF LONG-LIVED ASSETS:    In accordance with ASC 205, the Company reviews long-lived assets, such as property and equipment and intangibles subject to amortization, including contract acquisition costs and certain computer software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If upon a triggering event the Company determines that the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.

TRANSACTION PROCESSING PROVISIONS:    The Company has recorded an accrual for contract contingencies (performance penalties) and processing errors. A significant number of the Company’s contracts with large clients contain service level agreements which can result in TSYS incurring performance penalties if contractually required service levels are not met. When providing for these accruals, the Company takes into consideration such factors as the prior history of performance penalties and processing errors incurred, actual contractual penalties inherent in the Company’s contracts, progress towards milestones and known processing errors not covered by insurance.

These accruals are included in other current liabilities in the accompanying consolidated balance sheets. Increases and decreases in transaction processing provisions are charged to cost of services in the Company’s consolidated statements of income, and payments or credits for performance penalties and processing errors are charged against the accrual.

REDEEMABLE NONCONTROLLING INTEREST:     In connection with the 2010 acquisition of TMS, the Company was a party to call and put arrangements with respect to the membership units that represented the remaining noncontrolling interest of FNMS Holding. The call arrangement was exercisable by TSYS and the put arrangement was exercisable by FNBO. The put arrangement was outside the control of the Company by requiring the Company to purchase FNBO’s entire equity interest in FNMS Holding at a put price at fair market value. The put arrangement was recorded on the balance sheet and was classified as redeemable noncontrolling interest outside of permanent equity.

The call and put arrangements for FNMS Holding, representing 49% of its total outstanding equity interests, could have been exercised at the discretion of TSYS or FNBO on April 1, 2015, 2016 and 2017, upon the dilution of FNBO’s equity ownership in FNMS Holding below a designated threshold and in connection with certain acquisitions by TSYS or FNMS Holding in excess of designated value thresholds.

The Company bought the remaining 49% interest for $174.1 million, and paid net cash of $169.6 million ($174.1 million less $4.5 million for a trade name sold). With the purchase, the Company eliminated the redeemable noncontrolling interest of $144.6 million and adjusted the remaining balance through additional paid-in capital and deferred taxes.

NONCONTROLLING INTEREST:    In December 2007, the Financial Accounting Standards Board (FASB) issued authoritative guidance under ASC 810, “Consolidation.” ASC 810 changes the accounting for noncontrolling (minority) interests in consolidated financial statements, including the requirements to classify noncontrolling interests as a component of consolidated shareholders’ equity, the elimination of “minority interest” accounting in results of operations and changes in the accounting for both increases and decreases in a parent’s controlling ownership interest.

Noncontrolling interest in earnings of subsidiaries represents the minority shareholders’ share of the net income or loss of GP Network Corporation (GP Net) and TSYS Managed Services EMEA Ltd. (TSYS Managed Services). The noncontrolling interest in the consolidated balance sheet reflects the original investment by these shareholders in GP Net and

40

TSYS Managed Services, their proportional share of the earnings or losses and their proportional share of net gains or losses resulting from the currency translation of assets and liabilities of GP Net and TSYS Managed Services. TSYS has adopted the accounting policy to recognize gains or losses on equity transactions of a subsidiary as a capital transaction.

RESERVE FOR MERCHANT LOSSES:    The Company has potential liability for losses resulting from disputes between a cardholder and a merchant that arise as a result of, among other things, the cardholder’s dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. If the merchant is unable to fund the refund, TSYS must do so. TSYS also bears the risk of reject losses arising from the fact that TSYS collects fees from its merchants on the first day after the monthly billing period. If the merchant has gone out of business during such period, TSYS may be unable to collect such fees. TSYS maintains cash deposits or requires the pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. Most chargeback and reject losses are charged to cost of services as they are incurred. However, the Company also maintains a reserve against losses, including major fraud losses, which are both less predictable and involve larger amounts. The loss reserve was established using historical loss rates, applied to recent bankcard processing volume. At December 31, 2011, the Company had a merchant loss reserve in the amount of $397,000.

FOREIGN CURRENCY TRANSLATION:    The Company maintains several different foreign operations whose functional currency is their local currency. Foreign currency financial statements of the Company’s Mexican and Chinese equity investments, the Company’s wholly owned subsidiaries and the Company’s majority owned subsidiaries, as well as the Company’s division and branches in the United Kingdom and China, are translated into U.S. dollars at current exchange rates, except for revenues, costs and expenses, and net income which are translated at the average exchange rates for each reporting

period. Net gains or losses resulting from the currency translation of assets and liabilities of the Company’s foreign operations, net of tax when applicable, are accumulated in a separate section of shareholders’ equity titled accumulated other comprehensive income (loss). Gains and losses on transactions denominated in currencies other than the functional currencies are included in determining net income for the period in which exchange rates change.

COMPREHENSIVE INCOME:    The provisions of ASC 220, “Comprehensive Income,” require companies to display, with the same prominence as other financial statements, the components of comprehensive income (loss). TSYS displays the items of other comprehensive income (loss) in its consolidated statements of equity and comprehensive income.

TREASURY STOCK:    The Company uses the cost method when it purchases its own common stock as treasury shares or issues treasury stock upon option exercises and displays treasury stock as a reduction of shareholders’ equity.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES:    ASC 815, “Derivatives and Hedging” requires that all derivative instruments be recorded on the balance sheet at their respective fair values. The Company did not have any outstanding derivative instruments or hedging transactions at December 31, 2011.

REVENUE RECOGNITION:    The Company’s North America and International Services revenues are derived from long-term processing contracts with financial and nonfinancial institutions and are generally recognized as the services are performed. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements mailed, cards embossed and mailed and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual revenue minimums. Processing contracts generally range from three to ten years in length and provide for penalties for early termination.

The Company’s merchant services revenues are derived from long-term processing contracts with large financial institutions and other merchant acquirers which generally range from three to eight years and provide for penalties for early termination. Merchant services revenues are generated primarily

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from processing all payment forms including credit, debit, electronic benefits transfer and check truncation for merchants of all sizes across a wide array of retail market segments. The products and services offered include authorization and capture of electronic transactions, clearing and settlement of electronic transactions, information reporting services related to electronic transactions, merchant billing services, and point-of-sale terminal sales and services. Revenue is recognized for merchant services as those services are performed, primarily on a per unit basis. Revenues on point-of-sale terminal equipment are recognized upon the transfer of ownership and shipment of product.

The Company recognizes revenues in accordance with the provisions of SAB No. 104. SAB No. 104 sets forth guidance as to when revenue is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured.

The Company evaluates its contractual arrangements that provide services to clients through a bundled sales arrangement in accordance with the provisions of ASC 605. ASC 605 addresses the determination of whether an arrangement involving more than one deliverable contains more than one unit of accounting and how the arrangement consideration should be measured and allocated to the separate units of accounting.

A deliverable in multiple element arrangements indicates any performance obligation on the part of the seller and includes any combination of obligations to perform different services, grant licenses or other rights. Revenue is allocated to the separate units of accounting in a multiple element arrangement based on relative fair values, provided the delivered element has standalone value to the customer and delivery of any undelivered items is probable and substantially within the Company’s control. Evidence of fair value must be objective and reliable. An item has value to the customer on a standalone basis if it is sold separately by any vendor or the customer could resell the deliverable on a standalone basis.

In regards to taxes assessed by a governmental authority imposed directly on a revenue producing transaction, the Company reports its revenues on a net basis.

REIMBURSABLE ITEMS:    Reimbursable items consist of out-of-pocket expenses which are reimbursed by the Company’s clients. These expenses consist primarily of postage, access fees and third party software. The Company accounts for reimbursable items in accordance with the provisions of ASC 605.

SHARE-BASED COMPENSATION:    In December 2004, the FASB issued authoritative guidance under ASC 718, “Compensation — Stock Compensation.” ASC 718 establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. This Statement requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award.

ASC 718 is effective for all awards granted on or after January 1, 2006, and to awards modified, repurchased or cancelled after that date. ASC 718 requires the Company to recognize compensation costs for the nonvested portion of outstanding share-based compensation granted in the form of stock options based on the grant-date fair value of those awards calculated under the provisions of ASC 718, for pro forma disclosures. Share-based compensation expenses include the impact of expensing the fair value of stock options, as well as expenses associated with nonvested shares. TSYS adopted the provisions of ASC 718 effective January 1, 2006 using the modified-prospective-transition method.

ASC 718 requires companies to estimate forfeitures when recognizing compensation cost. The estimate of forfeitures will be adjusted by the Company as actual forfeitures differ from its estimates, resulting in compensation cost only for those awards that actually vest. The effect of the change in estimated forfeitures is recognized as compensation costs in the period the change in estimate occurred. In estimating its forfeiture rate, the Company stratified its data based upon historical experience to determine separate forfeiture rates for the different award grants. The Company currently estimates a forfeiture rate for existing stock option grants to TSYS non-executive employees, and a forfeiture rate for other TSYS share-based awards. Currently, TSYS estimates a forfeiture rate in the range of 0% to 10.0%.

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The Company has issued its common stock to directors and to certain employees under nonvested awards. The market value of the common stock at the date of issuance is recognized as compensation expense over the vesting period of the awards. For nonvested award grants that have pro rata vesting, the Company recognizes compensation expense using the straight-line method over the vesting period of the award.

LEASES:    The Company is obligated under noncancelable leases for computer equipment and facilities. As these leases expire, they will be evaluated and renewed or replaced by similar leases based on need. A lease is an agreement conveying the right to use property, plant, or equipment (land and/or depreciable assets) usually for a stated period of time. For purposes of applying the accounting and reporting standards, leases are classified from the standpoint of the lessee as capital or operating leases. The provisions of ASC 840, “Leases,” establish standards of financial accounting and reporting for leases by lessees and lessors. If at inception a lease meets one or more of the following four criteria, the lease shall be classified as a capital lease by the lessee: (a) the lease transfers ownership of the property to the lessee by the end of the lease term; (b) the lease contains a bargain purchase option; (c) the lease term is equal to 75% or more of the estimated economic life of the leased property; and (d) the present value at the beginning of the lease term of the minimum lease payments equals or exceeds 90% of the fair value of the leased property. If the lease does not meet one or more of the criteria, it shall be classified as an operating lease.

Rental payments on operating leases are charged to expense over the lease term. If rental payments are not made on a straight-line basis, rental expense nevertheless shall be recognized on a straight-line basis unless another systematic and rational basis is more representative of the time pattern in which use benefit is derived from the leased property, in which case that basis shall be used.

Certain of the Company’s operating leases are for office space. The Company will make various alterations (leasehold improvements) to the office space and capitalize these costs as part of property and equipment. Leasehold improvements are amortized on a straight-line basis over the useful life of the improvement or the term of the lease, whichever is shorter.

ADVERTISING:    Advertising costs, consisting mainly of advertising in trade publications, are expensed as incurred or the first time the advertising takes place. Advertising expense for 2011, 2010 and 2009 was $813,000, $690,000 and $327,000, respectively.

INCOME TAXES:    Income taxes reflected in TSYS’ consolidated financial statements are computed based on the taxable income of TSYS and its affiliated subsidiaries. A consolidated U.S. federal income tax return is filed for TSYS and its majority owned U.S. subsidiaries through the year ended December 31, 2011. Income tax returns are also filed in foreign jurisdictions where TSYS has a foreign affiliate.

The Company accounts for income taxes in accordance with the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Reserves against the carrying value of a deferred tax asset are established when necessary to reflect the decreased likelihood of realization of a deferred asset in the future. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Income tax provisions require the use of management judgments, which are subject to challenge by various taxing authorities. Contingency reserves are periodically established where the amount of the contingency can be reasonably determined and is likely to occur. Reductions in contingency reserves are recognized when tax disputes are settled or examination periods lapse.

Significant estimates used in accounting for income taxes relate to the determination of taxable income, the determination of temporary differences between book and tax bases, as well as estimates on the realizability of tax credits and net operating losses.

TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the consolidated statements of income.

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TSYS adopted the authoritative guidance under ASC 740, “Income Taxes,” on January 1, 2007. This interpretation prescribed a recognition threshold and measurement attribute for the financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken in a tax return.

EARNINGS PER SHARE:    In June 2008, the FASB issued authoritative guidance under ASC 260, “Earnings Per Share.” The guidance under ASC 260 holds that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are “participating securities” as defined in ASC 260, and therefore should be included in computing earnings per share (EPS) using the two-class method.

The two-class method is an earnings allocation method for computing EPS when an entity’s capital structure includes two or more classes of common stock or common stock and participating securities. It determines EPS based on dividends declared on common stock and participating securities and participation rights of participating securities in any undistributed earnings. The guidance under ASC 260 was effective for reporting periods beginning after December 15, 2008.

Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised. Diluted EPS is calculated by dividing net income by weighted average common and common equivalent shares outstanding. Common equivalent shares are calculated using the treasury stock method.

RECLASSIFICATIONS:    Certain reclassifications have been made to the 2010 and 2009 financial statements to conform to the presentation adopted in 2011.

NOTE 2 Discontinued Operations

The Company sold certain assets and liabilities of TPOS on September 30, 2010. The sale of certain assets and liabilities of TPOS was the result of management’s decision during the third quarter of 2010 to divest non-strategic businesses and focus resources on core products and services. The Company had a pre-tax goodwill impairment of $2.2 million (approximately $1.5 million after-tax) related to TPOS, which was included in discontinued

operations as part of the sale. This transaction resulted in the assumed lease of its Sacramento, California, facility and the closure of its Columbus, Georgia-based distribution center.

TSYS will continue to use the buyer in a referral arrangement for customers who approach TSYS Acquiring Solutions for terminal services, and will also subcontract existing relationships to the buyer for a period no longer than two years. However, TSYS will not have significant continuing involvement after the sale to the buyer.

TPOS was neither a significant component of the Merchant Services segment, nor TSYS’ consolidated results.

The Company sold TDM on August 31, 2009. The sale of the TDM business was the result of management’s decision to divest non-strategic businesses and focus resources on core products and services. TDM was part of the North America Services segment.

In accordance with the provisions of ASC 205, the Company determined the TPOS business became a discontinued operation in the third quarter of 2010 and the TDM business became a discontinued operation in the first quarter of 2009.

The following table presents the summarized results of discontinued operations for the years ended December 31, 2010 and 2009:

(in thousands)	2010			2009
Total revenues	$	7,430			181,060
Operating loss	$	(1,840	)		(4,890	)
Income taxes	$	(621	)		(1,626	)
Loss from discontinued operations, net of tax	$	(1,243	)		(3,219	)
Loss on disposition, net of tax	$	(2,002	)		(3,325	)

The Consolidated Statements of Cash Flows include TPOS and TDM through the respective dates of disposition.

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NOTE 3 Fair Value Measurement

ASC 820, “Fair Value Measurements and Disclosure,” requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant level of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows:

Level 1 — Quoted prices for identical assets and liabilities in active markets.

Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Unobservable inputs for the asset or liability.

Goodwill and certain intangible assets not subject to amortization are assessed annually for impairment in the second quarter of each year using fair value measurement techniques. Specifically, goodwill impairment is determined using a two-step test. The first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit (RU) with its book value, including goodwill. If the fair value of the RU exceeds its book value, goodwill is considered not impaired and the second step of the impairment test is unnecessary. If the book value of the RU exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the RU’s goodwill with the book value of that goodwill. If the book value of the RU’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The fair value of the RU is allocated to all of the assets and liabilities of that unit as if the RU had been acquired in a business combination and the fair value of the RU was the purchase price paid to acquire the RU.

The estimate of fair value of the Company’s RUs is determined using various valuation techniques, including using an equally weighted combination of the market approach and the income approach. The market approach, which contains Level 2 inputs, utilizes readily available market valuation multiples to estimate fair value. The income approach is a valuation technique that utilizes the discounted cash flow (DCF) method, which includes Level 3 inputs. Under the DCF method, the fair value of the RU reflects the present value of the projected earnings that will be generated by each RU after taking into account the revenues and expenses associated with the asset, the relative risk that the cash flows will occur, the contribution of other assets, and an appropriate discount rate to reflect the value of the invested capital. Cash flows are estimated for future periods based upon historical data and projections by management.

At December 31, 2011, the Company had recorded goodwill in the amount of $355.5 million. The Company performed its annual impairment tests of its unamortized goodwill balance as of May 31, 2011, and these tests did not indicate any impairment. The fair value of the RUs substantially exceeds the carrying value.

The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value.

NOTE 4 Relationships with Affiliated Companies

The Company provides electronic payment processing and other services to the Company’s equity investments, TSYS de México and CUP Data.

The foregoing related party services are performed under contracts that are similar to its contracts with unrelated third party customers. The Company believes the terms and conditions of transactions between the Company and these related parties are comparable to those which could have been obtained in transactions with unaffiliated parties.

Through its related party transactions, TSYS generates accounts receivable and liability accounts with TSYS de México and CUP Data. At December 31, 2011, the Company had an accounts receivable balance of $9,700 associated with related parties. At December 31, 2011, the Company had an accounts payable balance of $32,400 associated with related parties.

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The table below details revenues derived from affiliated companies for the years ended December 31, 2011, 2010 and 2009:

(in thousands)	2011		2010		2009
Total revenues:
CUP Data	$	136		130		75
TSYS de México		62		51		51
Total revenues	$	198		181		126

The Company and TSYS de México are parties to an agreement where TSYS de México provides processing support to the Company. Processing support fees paid to TSYS de México were $168,000, $149,000 and $147,000 for the years ended December 31, 2011, 2010 and 2009, respectively.

NOTE 5 Cash and Cash Equivalents

Cash and cash equivalent balances at December 31 are summarized as follows:

(in thousands)	2011		2010
Cash and cash equivalents in domestic accounts	$	263,853		347,734
Cash and cash equivalents in foreign accounts		52,484		47,061
Total	$	316,337		394,795

The Company maintains operating accounts outside the United States denominated in currencies other than the U.S. dollar. All amounts in domestic accounts are denominated in U.S. dollars.

At December 31, 2011 and 2010, the Company had $22.0 million and $29.9 million, respectively, of cash and cash equivalents in Money Market accounts that had an original maturity date of 90 days or less. The Company considers cash equivalents to be short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of change in interest rates.

NOTE 6 Prepaid Expenses and Other Current Assets

Significant components of prepaid expenses and other current assets at December 31 are summarized as follows:

(in thousands)	2011		2010
Prepaid expenses	$	20,917		15,421
Supplies inventory		10,053		7,138
Income taxes receivable		126		12,977
Other		41,335		42,312
Total	$	72,431		77,848

NOTE 7 Property and Equipment, net

Property and equipment balances at December 31 are as follows:

(in thousands)	2011		2010
Computer and other equipment	$	248,592		230,773
Buildings and improvements		230,797		227,881
Furniture and other equipment		127,425		125,627
Land		16,794		16,729
Other		130		16,461
Total property and equipment		623,738		617,471
Less accumulated depreciation and amortization		357,130		317,369
Property and equipment, net	$	266,608		300,102

Depreciation and amortization expense related to property and equipment was $49.3 million, $50.1 million and $50.6 million for the years ended December 31, 2011, 2010 and 2009, respectively. Depreciation expense includes amounts for equipment acquired under capital lease. The decrease in other property and equipment assets for 2011 as compared to 2010 is primarily due to the Company’s reclassification of assets from construction in progress to other noncurrent assets.

NOTE 8 Computer Software, net

Computer software at December 31 is summarized as follows:

(in thousands)	2011		2010
Licensed computer software	$	423,100		403,115
Software development costs		283,452		265,029
Acquisition technology intangibles		76,055		75,891
Total computer software		782,607		744,035
Less accumulated amortization:
Licensed computer software		309,571		275,145
Software development costs		208,781		183,853
Acquisition technology intangibles		49,011		38,613
Total accumulated amortization		567,363		497,611
Computer software, net	$	215,244		246,424

TSYS acquired 51% ownership in TMS in April 2010. TSYS acquired the remaining 49% interest in TMS in January 2011. The Company allocated approximately $20.3 million to acquisition technology intangibles during 2010. Refer to Note 24 for more information on TMS.

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Amortization expense related to licensed computer software costs was $37.1 million, $33.4 million and $31.4 million for the years ended December 31, 2011, 2010 and 2009, respectively. Amortization expense includes amounts for computer software acquired under capital lease. Amortization of software development costs was $24.4 million, $23.1 million and $20.0 million for the years ended December 31, 2011, 2010 and 2009, respectively. Amortization expense related to acquisition technology intangibles was $10.3 million for 2011, $9.9 million for 2010 and $6.9 million for 2009.

During the year ended December 31, 2011, the Company recognized an impairment loss of $960,000 related to the Japan Retail Gift program.

The weighted average useful life for each component of computer software, and in total, at December 31, 2011, is as follows:

	Weighted Average Amortization Period (Yrs)
Licensed computer software		5.6
Software development costs		6.0
Acquisition technology intangibles		6.9
Total		5.9

Estimated future amortization expense of licensed computer software, software development costs and acquisition technology intangibles as of December 31, 2011 for the next five years is:

(in thousands)	Licensed Computer Software		Software Development Costs		Acquisition Technology Intangibles
2012	$	38,573		38,456		9,319
2013		30,891		14,968		7,665
2014		22,125		11,135		5,873
2015		15,287		7,302		2,828
2016		6,349		1,892		1,359

NOTE 9 Contract Acquisition Costs, net

Significant components of contract acquisition costs at December 31 are summarized as follows:

(in thousands)	2011		2010
Conversion costs, net	$	88,765		80,521
Payments for processing rights, net		74,222		85,730
Total	$	162,987		166,251

Amortization related to payments for processing rights, which is recorded as a reduction of revenues, was $15.9 million, $17.7 million and $25.5 million for 2011, 2010 and 2009, respectively.

Amortization expense related to conversion costs was $18.8 million, $17.5 million and $17.8 million for 2011, 2010 and 2009, respectively.

During the year ended December 31, 2011, the Company recognized an impairment loss related to payments for processing rights of $750,000 and an impairment loss related to conversion costs of $49,000.

The weighted average useful life for each component of contract acquisition costs, and in total, at December 31, 2011 is as follows:

	Weighted Average Amortization Period (Yrs)
Payments for processing rights		9.6
Conversion costs		7.4
Total		8.6

Estimated future amortization expense on payments for processing rights and conversion costs as of December 31, 2011 for the next five years is:

(in thousands)	Payments for Processing Rights		Conversion Costs
2012	$	14,742		17,825
2013		14,355		18,115
2014		12,289		15,906
2015		8,429		13,838
2016		8,608		11,149

NOTE 10 Goodwill

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet, an Atlanta-based merchant acquirer, for $42 million in cash. The Company has allocated approximately $28.9 million to goodwill. Refer to Note 24 for more information on TermNet.

In May 2011, TSYS made a payment of $6.0 million of contingent merger consideration in connection with the purchase of Infonox on the Web (Infonox), which was accounted for under Statement of Financial Accounting Standard No. 141 (SFAS No. 141), “Business Combinations.” The payment of the contingent merger consideration by TSYS was recorded as goodwill.

On April 1, 2010, TSYS acquired 51% ownership of TMS for approximately $150.5 million. TSYS acquired the remaining 49% interest in TMS on January 1, 2011 for approximately $174.1 million. The Company has allocated approximately $155.5 million to goodwill. Refer to Note 24 for more information on TMS.

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With the sale of certain assets and liabilities of TPOS in 2010, the Company incurred a pre-tax goodwill impairment of $2.2 million (approximately $1.5 million after-tax), which is included in loss on

discontinued operations, net of tax. TPOS was not a significant component to the Merchant Services segment.

The gross amount and accumulated impairment loss of goodwill at December 31, 2011 and 2010 is as follows:

	2011
	North America Services		International Services		Merchant Services			Consolidated
Gross amount	$	70,614		33,369		253,740		$	357,723
Accumulated impairment losses		—		—		(2,225	)		(2,225	)
Goodwill, net	$	70,614		33,369		251,515		$	355,498

	2010
	North America Services		International Services		Merchant Services			Consolidated
Gross amount	$	70,614		33,188		218,822		$	322,624
Accumulated impairment losses		—		—		(2,225	)		(2,225	)
Goodwill, net	$	70,614		33,188		216,597		$	320,399

In 2010, the Company sold certain assets and liabilities of TPOS, for which the Company had a pre-tax goodwill impairment of $2.2 million and is included in discontinued operations as part of the sale.

The changes in the carrying amount of goodwill at December 31, 2011 and 2010 are as follows:

(in thousands)	North America Services		International Services			Merchant Services		Consolidated
Balance as of December 31, 2009	$	70,614		34,181			61,101	$	165,896
TMS purchase price allocation		—		—			155,496		155,496
Currency translation adjustments		—		(993	)		—		(993	)
Balance as of December 31, 2010		70,614		33,188			216,597		320,399
TermNet purchase price allocation		—		—			28,918		28,918
Infonox additional purchase consideration		—		—			6,000		6,000
Currency translation adjustments		—		181			—		181
Balance as of December 31, 2011	$	70,614		33,369			251,515	$	355,498

NOTE 11 Equity Investments

The Company has an equity investment with Promocíón y Operación, S.A. de C.V. and records its 49% ownership using the equity method of accounting. The operation, TSYS de México, prints statements and provides card-issuing support services to the equity investment clients and others.

The Company has an equity investment with China UnionPay Co., Ltd.(CUP) and records its 44.56% ownership using the equity method of accounting. CUP is sanctioned by the People’s Bank of China, China’s central bank, and has become one of the world’s largest and fastest-growing payments networks. CUP Data currently provides transaction processing, disaster recovery and other services for banks and bankcard issuers in China.

TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings,

cash contributions and distributions, and foreign currency translation adjustments. TSYS believes the carrying value approximates the underlying assets of the equity investments.

TSYS’ equity in income of equity investments (net of tax) for the years ended December 31, 2011, 2010 and 2009 was $8.7 million, $7.1 million and $7.0 million, respectively.

A summary of TSYS’ equity investments at December 31 is as follows:

(in thousands)	2011		2010
CUP Data	$	76,110		70,479
TSYS de México		6,814		6,648
Total	$	82,924		77,127

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NOTE 12 Other Intangible Assets, net

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet, an Atlanta-based merchant acquirer, for $42 million in cash. The Company allocated approximately $11.7 million to other intangible assets as part of the purchase price allocation to customer relationships, channel relationships and covenant-not-to-compete. Refer to Note 24 for more information on TermNet.

In April 2010, TSYS acquired 51% ownership in TMS. TSYS acquired the remaining 49% interest in January 2011. The Company allocated approximately $80.5 million to other intangible assets as part of the purchase price allocation to customer relationships, trade name and trade association. Refer to Note 24 for more information on TMS.

Significant components of other intangible assets at December 31 are summarized as follows:

	2011
(in thousands)	Gross		Accumulated Amortization			Net
Customer relationships	$	106,312		(34,899	)	$	71,413
Trade association		10,000		(1,750	)		8,250
Trade name		2,024		(2,024	)		—
Channel relationships		1,600		(107	)		1,493
Covenants-not-to-compete		1,140		(1,046	)		94
Total	$	121,076		(39,826	)	$	81,250

	2010
(in thousands)	Gross		Accumulated Amortization			Net
Customer relationships	$	93,727		(22,859	)	$	70,868
Trade association		10,000		(750	)		9,250
Trade name		6,031		(3,031	)		3,000
Covenants-not-to-compete		1,000		(1,000	)		—
Total	$	110,758		(27,640	)	$	83,118

Amortization related to other intangible assets, which is recorded in selling, general and administrative expenses, was $13.2 million, $11.2 million and $3.4 million for 2011, 2010 and 2009, respectively.

The weighted average useful life for each component of other intangible assets, and in total, at December 31, 2011 is as follows:

	Weighted Average Amortization Period (Yrs)
Channel relationships		10.0
Trade association		10.0
Customer relationships		7.9
Trade name		2.8
Covenant-not-to-compete		2.7
Total		8.0

Estimated future amortization expense on other intangible assets as of December 31, 2011 for the next five years is:

(in thousands)
2012	$	14,145
2013		12,848
2014		12,575
2015		11,896
2016		11,766

NOTE 13 Long-term Debt and Capital Lease Obligations

In December 2010, the Company obtained a $39.8 million note payable from a third-party vendor related to financing the purchase of distributed systems software.

On December 21, 2007, the Company entered into a Credit Agreement with Bank of America N.A., as Administrative Agent, The Royal Bank of Scotland plc, as Syndication Agent, and the other lenders. The Credit Agreement provides for a $168 million unsecured five year term loan to the Company and a $252 million five year unsecured revolving credit facility. The principal balance of loans outstanding under the credit facility bears interest at a rate of the London Interbank Offered Rate (LIBOR) plus an applicable margin of 0.60%. The applicable margin could vary within a range from 0.27% to 0.725% depending on changes in the Company’s corporate credit rating which is currently a “BBB” investment grade rating from Standard and Poors. Interest is paid on the last date of each interest period; however, if the period exceeds three months, interest is paid every three months after the beginning of such interest period. In addition, the Company is to pay each lender a fee in respect of the amount of such lender’s commitment under the revolving credit facility (regardless of usage), ranging from 0.08% to 0.15% (currently 0.10%) depending on the Company’s corporate credit rating.

The Company is not required to make any scheduled principal payments other than payment of the entire outstanding balance on December 21, 2012. The Company may prepay the revolving credit facility and the term loan in whole or in part at any time without premium or penalty, subject to reimbursement of the lenders’ customary breakage and redeployment costs in the case of prepayment of LIBOR borrowings. The Credit Agreement includes covenants requiring the Company to maintain certain minimum financial ratios. The Company did not use the revolving credit facility in 2011, 2010 or 2009.

The proceeds will be used for working capital and other corporate purposes, including financing the repurchase by TSYS of its capital stock.

On October 30, 2008, the Company’s International Services segment obtained a credit agreement from a third-party to borrow up to approximately ¥2.0 billion, or $21 million, in a

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Yen-denominated three-year loan to finance activities in Japan. The rate is LIBOR plus 80 basis points. The Company initially made a draw of ¥1.5 billion, or approximately $15.1 million. In January 2009, the Company made an additional draw down of ¥250 million, or approximately $2.8 million. In April 2009, the Company made an additional draw down of ¥250 million, or approximately $2.5 million. On December 30, 2011, the Company modified its loan to extend the maturity date to November 5, 2014.

In connection with the formation of TSYS Managed Services, TSYS and Merchants, a customer-contact company and a wholly owned subsidiary of Dimension Data, agreed to provide long-term financing to TSYS Managed Services. In November 2011, the Company repaid the TSYS Managed Services loan of £504,000, or approximately $788,000.

In addition, TSYS maintains an unsecured credit agreement with CB&T. The credit agreement has a maximum available principal balance of $5.0 million, with interest at prime. TSYS did not use the credit facility during 2011, 2010 or 2009.

Long-term debt at December 31 consists of:

(in thousands)	2011		2010
LIBOR + 0.60%, unsecured term loan, due December 21, 2012, with principal to be paid at maturity	$	168,000		168,000
1.50% note payable, due December 31, 2013, with monthly interest and principal payments		26,703		39,758
LIBOR + 0.80%, unsecured term loan, due November 5, 2014, with principal paid at maturity		25,652		23,937
3.95% note payable, due March 1, 2011, with monthly interest and principal payments		—		1,790
LIBOR + 2.00%, unsecured term loan, due November 16, 2011, with quarterly interest payments and principal to be paid at maturity		—		775
Total debt		220,355		234,260
Less current portion		181,251		39,557
Noncurrent portion of long-term debt	$	39,104		194,703

Required annual principal payments on long-term debt for the five years subsequent to December 31, 2011 are summarized as follows:

(in thousands)
2012	$	181,251
2013		13,452
2014		25,652
2015		—
2016		—

Capital lease obligations at December 31 consist of:

(in thousands)	2011		2010
Capital lease obligations	$	38,852		43,764
Less current portion		14,363		13,191
Noncurrent portion of capital leases	$	24,489		30,573

The future minimum lease payments under capital leases at December 31, 2011 are summarized as follows:

(in thousands)
2012	$	13,861
2013		12,393
2014		11,910
2015		1,607
2016		302
Total minimum lease payments		40,073
Less amount representing interest		1,221
	$	38,852

NOTE 14 Other Current Liabilities

Significant components of other current liabilities at December 31 are summarized as follows:

(in thousands)	2011		2010
Accrued expenses	$	40,141		29,999
Deferred revenues		29,707		34,184
Dividends payable		18,913		13,634
Accrued income taxes		5,731		2,920
Transaction processing provisions		5,382		5,221
Client postage deposits		3,562		3,708
Other		22,427		21,374
Total	$	125,863		111,040

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NOTE 15 Equity

DIVIDENDS:    Dividends on common stock of $53.9 million were paid in 2011, compared to $55.1 million and $55.2 million in 2010 and 2009, respectively.

EQUITY COMPENSATION PLANS:    The following table summarizes TSYS’ equity compensation plans by category; as of December 31, 2011:

(in thousands, except per share data) Plan Category	(a) Number of securities to  be issued upon exercise of outstanding options, warrants and rights			(b) Weighted-average exercise price of outstanding options, warrants and rights		(c) Number of securities  remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by security holders		6,082	(1)	$	22.04		21,515	(2)
Equity compensation plans not approved by security holders		—			—		—
Total		6,082		$	22.04		21,515

(1) Includes 1.4 million performance share awards, which will only be issued if certain performance goals are met. The weighted-average exercise price in column (b) does not take these awards into account. Does not include an aggregate of 1.2 million shares of nonvested awards which will vest over the remaining years through 2013.

(2) Includes 21,514,634 shares available for future grants under the Total System Services, Inc. 2002 Long-Term Incentive Plan, 2007 Omnibus Plan and 2008 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares.

CHANGES IN TSYS’ OWNERSHIP INTEREST IN SUBSIDIARIES:    TSYS’ subsidiary, GP Net repurchased 400 common shares on December 29, 2011 from its noncontrolling interest. As a result of the transaction, TSYS’ ownership increased to 54.08% from 53.00%. The following table presents the effect on TSYS’ shareholders’ equity from GP Net’s acquisition of treasury shares:

(in thousands)	Year Ended December 31, 2011
Increase in other comprehensive income (OCI)	$	28
Increase in additional paid in capital		77
Effect from change in noncontrolling interests	$	105

NOTE 16 Share-Based Compensation

General Description of Share-Based Compensation Plans

TSYS has various long-term incentive plans under which the Compensation Committee of the Board of

Directors has the authority to grant share-based compensation to TSYS employees.

Employee stock options granted during or after 2006 (other than performance-based stock options) generally become exercisable at the end of the three-year period and expire ten years from the date of grant. Vesting for stock options granted during or after 2006 (other than performance-based stock options) accelerates upon retirement for plan participants who have reached age 62 and who also have no less than fifteen years of service at the date of their election to retire. For stock options granted in 2006, share-based compensation expense is fully recognized for plan participants upon meeting the retirement eligibility requirements of age and service.

Stock options granted prior to 2006 generally become exercisable at the end of a two to three-year period and expire ten years from the date of grant. Vesting for stock options granted prior to 2006 accelerates upon retirement for plan participants who have reached age 50 and who also have no less than fifteen years of service at the date of their election to retire. Following adoption of ASC 718, share-based compensation expense is recognized in income over the remaining nominal vesting period with consideration for retirement eligibility.

The performance-based stock options awarded to TSYS executives effective April 30, 2010 become

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exercisable only upon satisfaction of certain performance conditions. Share-based compensation expense is recognized in income based upon the Company’s estimate of the probability of achieving the specified EPS goal. The Company historically issues new shares or uses treasury shares to satisfy share option exercises.

Long-Term Incentive Plans

TSYS maintains the Total System Services, Inc. 2008 Omnibus Plan, Total System Services, Inc. 2007 Omnibus Plan, Total System Services, Inc. 2002 Long-Term Incentive Plan and Total System Services, Inc. 2000 Long-Term Incentive Plan to advance the interests of TSYS and its shareholders through awards that give employees and directors a personal stake in TSYS’ growth, development and financial success. Awards under these plans are designed to motivate employees and directors to devote their best efforts to the business of TSYS. Awards will also help TSYS attract and retain the services of employees and directors who are in a position to make significant contributions to TSYS’ success.

The plans are administered by the Compensation Committee of the Company’s Board of Directors and enable the Company to grant nonqualified and incentive stock options, stock appreciation rights, restricted stock and restricted stock units, performance units or performance shares, cash-based awards, and other stock-based awards.

All stock options must have a maximum life of no more than ten years from the date of grant. The exercise price will not be less than 100% of the fair market value of TSYS’ common stock at the time of grant. Any shares related to awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares, are settled in cash in lieu of shares, or are exchanged with the

Committee’s permission, prior to the issuance of shares, for awards not involving shares, shall be available again for grant under the various plans. The aggregate number of shares of TSYS stock which may be granted to participants pursuant to awards granted under the various plans may not exceed the following: Total System Services, Inc. 2008 Omnibus Plan — 17 million shares; Total System Services, Inc. 2007 Omnibus Plan — 5 million shares; Total System Services, Inc. 2002 Long-Term Incentive Plan — 9.4 million shares; and Total System Services, Inc. 2000 Long-Term Incentive Plan — 2.4 million shares. Effective February 1, 2010, no additional awards may be made from the Total System Services, Inc. 2000 Long-Term Incentive Plan.

Share-Based Compensation

TSYS’ share-based compensation costs are included as expenses and classified as cost of services and selling, general and administrative. TSYS does not include amounts associated with share-based compensation as costs capitalized as software development and contract acquisition costs as these awards are typically granted to individuals not involved in capitalizable activities. For the year ended December 31, 2011, share-based compensation was $16.5 million compared to $15.8 million and $16.1 million for the same periods in 2010 and 2009, respectively.

Nonvested Awards:    The Company granted shares of TSYS common stock to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued under nonvested stock bonus awards for services to be provided in the future by such officers, and employees. Beginning in 2011, the grants to the Board of Directors were fully vested on the date of grant. The following table summarizes the number of shares granted each year:

	2011		2010		2009
Number of shares		206,040		197,186		513,920
Market value	$	3.6 million	$	3.1 million	$	6.8 million

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A summary of the status of TSYS’ nonvested shares as of December 31, 2011, 2010 and 2009, respectively, and the changes during the periods are presented below:

	2011					2010					2009
Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value
Outstanding at beginning of year		821		$	16.91		1,084		$	18.60		1,014		$	23.46
Granted		206			17.67		197			15.55		514			13.28
Vested		(376	)		17.60		(416	)		20.63		(414	)		23.77
Forfeited/canceled		(33	)		15.71		(44	)		17.32		(30	)		20.34
Outstanding at end of year		618		$	16.80		821		$	16.91		1,084		$	18.60

As of December 31, 2011, there was approximately $5.8 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted average period of 1.6 years.

In March 2011, TSYS authorized a total grant of 263,292 performance shares to certain key executives with a performance based vesting schedule (2011 performance shares). These 2011 performance shares have a 2011-2013 performance period for which the Compensation Committee established two performance goals: compound growth in revenues before reimbursables and income from continuing. The Compensation Committee will certify the attainment level of such goals following the end of 2013, and the number of performance shares that will vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company will estimate the probability of achieving the goals through the performance period and will expense the award on a straight-line basis.

In March 2010, TSYS authorized a total grant of 279,831 performance shares to certain key executives with a performance based vesting schedule (2010 performance shares). These 2010 performance shares have a 2010-2012 performance period for which the Compensation Committee established two performance goals: compound growth in revenues before reimbursables and income from continuing operations using the 2010 annual operating plan as the base. The Compensation Committee will certify the attainment level of such goals following the end of 2012, and the number of performance shares that will vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company will estimate the probability of achieving the goals through the performance period and will expense the award on a straight-line basis.

As of December 31, 2011, there was approximately $4.2 million of total unrecognized compensation cost related to the 2010 and 2011 performance shares compensation arrangement. That cost is expected to be recognized until the end of 2013.

During 2008, TSYS authorized a grant of non-vested awards to two key executives with separate performance vesting schedules. These grants have separate one-year performance periods that vest over five to seven years during each of which the Compensation Committee establishes an earnings per share goal and, if such goal is attained during any performance period, 20% of the performance-based shares will vest, up to a maximum of 100% of the total grant. Compensation expense for each year’s award is measured on the grant date based on the quoted market price of TSYS common stock and is expensed on a straight-line basis for the year.

A summary of the awards authorized in each year is below:

Year of Initial Award	Total Number of Shares Awarded		Potential Number of Performance-Based Shares to be Vested
2011		263,292		263,292	(2014	)
2010		279,831		279,831	(2013	)
2008		182,816		73,125	(2012-2014	)

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A summary of the status of TSYS’ performance-based nonvested shares as of December 31, 2011, 2010 and 2009, respectively, and changes during those periods are presented below:

	2011					2010					2009
Performance-based Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value
Outstanding at beginning of year		316		$	15.65		62		$	13.69		62		$	23.32
Granted		300			17.63		316			15.65		62			13.69
Vested		(36	)		15.61		(62	)		13.69		(62	)		23.32
Forfeited/canceled		—			—		—			—		—			—
Outstanding at end of year		580		$	16.68		316		$	15.65		62		$	13.69

Stock Option Awards

During 2011, the Company granted stock options to key TSYS executive officers and non-management members of its Board of Directors. During 2010 and 2009, the Company granted stock options to key TSYS executive officers. The grants to key TSYS executive officers were issued under nonvested stock bonus awards for services to be provided in the future by such officers. The grants to the Board of Directors were fully vested on the date of grant. The average fair value of the options granted was estimated on the date of grant using the Black-Scholes-Merton option-pricing model. The following table summarizes the weighted average assumptions, and the weighted average fair value of the options:

	2011			2010			2009
Number of options granted		716,508			2,176,963			1,047,949
Weighted average exercise price	$	17.61		$	16.01		$	13.11
Risk-free interest rate		2.96	%		2.65	%		3.19	%
Expected volatility		29.98	%		30.00	%		42.00	%
Expected term (years)		8.5			4.9			8.6
Dividend yield		1.59	%		1.79	%		2.14	%
Weighted average fair value	$	5.78		$	4.11		$	5.31

In April 2010, the Company granted 1.4 million stock options to key TSYS executive officers that are performance- and/or market conditions-based. These stock options will vest and become exercisable only if the stock price is at least a specified percentage above the grant date stock price on April 30, 2013 or TSYS reaches a specified EPS goal by December 31, 2012. Given the market conditions component, TSYS evaluated the impact using the Monte Carlo simulation to value these awards and ultimately determined that the impact was minimal. The average fair value of the option grants was $3.48 per option and was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions: exercise price of $16.19; risk-free interest rate of 2.07%; expected volatility of 30.0%; expected term of 4.0 years; and dividend yield of 1.79%.

In March 2010, the Company also granted 736,000 stock options to key TSYS executive officers. The average fair value of the option grant was $5.33 per option and was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions: exercise price of $15.66; risk-free interest rate of 3.77%; expected volatility of 30.0%; expected term of 8.6 years; and dividend yield of 1.79%. The grant will vest over a period of 3 years.

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A summary of TSYS’ stock option activity as of December 31, 2011, 2010 and 2009, and changes during the years ended on those dates is presented below:

	2011					2010					2009
(in thousands, except per share data)	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Options:
Outstanding at beginning of year		8,810		$	23.40		6,955		$	25.54		6,185		$	27.59
Granted		717			17.61		2,177			15.89		1,048			13.11
Exercised		(597	)		13.51		(41	)		13.11		(1	)		1.83
Forfeited/canceled		(2,848	)		29.46		(281	)		19.83		(277	)		24.36
Outstanding at end of year		6,082		$	20.61		8,810		$	23.40		6,955		$	25.54
Options exercisable at year-end		3,122		$	25.00		5,712		$	27.48		5,357		$	28.15
Weighted average fair value of options granted during the year				$	5.78				$	4.11				$	5.31

	Outstanding			Exercisable
Average remaining contractual life (in years)		4.9			4.0
Aggregate intrinsic value (in thousands)	$	(6,401	)	$	(16,967	)

Shares Issued for Options Exercised

During 2011, 2010 and 2009, employees of the Company exercised options for shares of TSYS common stock that were issued from treasury. The table below summarizes these stock option exercises by year:

	Options Exercised		Shares Issued from Treasury		Intrinsic Value
2011		597,161		597,161	$	3,627,000
2010		41,403		41,403	$	90,400
2009		1,205		1,205	$	14,300

For awards granted before January 1, 2006 that were not fully vested on January 1, 2006, the Company will record the tax benefits from the exercise of stock options as increases to the “Additional paid-in capital” line item of the Consolidated Balance Sheets. If the Company does recognize tax benefits, the Company will record these tax benefits from share-based compensation costs as cash inflows in the financing section and cash outflows in the operating section in the Statement of Cash Flows. The Company has elected to use the short-cut method to calculate its historical pool of windfall tax benefits.

As of December 31, 2011, there was approximately $4.9 million of total unrecognized compensation cost related to TSYS stock options that is expected to be recognized over a remaining weighted average period of 1.7 years.

NOTE 17 Treasury Stock

The following table summarizes shares held as treasury stock and their related carrying value:

At December 31, (in thousands)	Number  of Treasury Shares		Treasury Shares Cost
2011		12,829	$	225,034
2010		6,798		115,449
2009		3,680		69,950

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Stock Repurchase Plan

On April 20, 2010, TSYS announced a stock repurchase plan to purchase up to 10 million shares of TSYS stock. The shares may be purchased from time to time over the next two years at prices considered attractive to the Company. On May 3, 2011, TSYS announced that its Board had approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 10 million shares to up to 15 million shares of TSYS stock. The expiration date of the plan was also extended to April 30, 2013. Through December 31, 2011, the Company purchased 6.6 million shares for approximately $120.6 million, at an average price of $18.28.Through December 31, 2010, the Company purchased 3.1 million shares for approximately $45.1 million, at an average price of $14.60.

The following table sets forth information regarding the Company’s purchases of its common stock on a monthly basis during the three months ended December 31, 2011:

(in thousands, except per share data)	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Cumulative Shares  Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
October 2011		—	$	—		7,293		7,707
November 2011		—		—		7,293		7,707
December 2011		2,400		19.89		9,693		5,307
Total		2,400	$	19.89

Treasury Shares

In 2008, the Compensation Committee approved “share withholding for taxes” for all employee nonvested awards, and also for employee stock options under specified circumstances. The dollar amount of the income tax liability from each exercise is converted into TSYS shares and withheld at the statutory minimum. The shares are added to the treasury account and TSYS remits funds to the Internal Revenue Service to settle the tax liability. During 2011 and 2010, the Company acquired 37,081 shares for approximately $636,000 and 66,553 shares for approximately $1.1 million, respectively, as a result of share withholding for taxes.

NOTE 18 Other Comprehensive Income (Loss)

In June 1997, the FASB issued authoritative guidance under ASC 220, which established certain standards for reporting and presenting comprehensive income in the general-purpose financial statements. The purpose of ASC 220 was to report all items that met the definition of “comprehensive income” in a prominent financial statement for the same period in which they were recognized. Comprehensive income includes all changes in owners’ equity that resulted from transactions of the business entity with non-owners.

Comprehensive income is the sum of net income and other items that must bypass the income statement because they have not been realized, including items such as an unrealized holding gain or loss from available for sale securities and foreign currency translation gains or losses. These items are not part of net income, yet are important enough to be included in comprehensive income, giving the user a more comprehensive picture of the organization as a whole. Items included in comprehensive income, but not net income, are reported under the accumulated other comprehensive income section of shareholders’ equity.

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Comprehensive income (loss) for TSYS consists of net income, cumulative foreign currency translation adjustments and the recognition of an overfunded or underfunded status of a defined benefit postretirement plan recorded as a component of shareholders’ equity. The income tax effects allocated to and the cumulative balance of each component of accumulated other comprehensive income (loss) are as follows:

(in thousands)	Beginning Balance			Pretax amount			Tax effect			Net-of-Tax Amount			Ending Balance
December 31, 2008	$	28,322			(43,121	)		(8,172	)		(34,949	)	$	(6,627	)
Foreign currency translation adjustments	$	(5,858	)		14,140			1,995			12,145		$	6,287
Change in accumulated OCI related to postretirement healthcare plans		(769	)		235			80			155			(614	)
December 31, 2009	$	(6,627	)		14,375			2,075			12,300		$	5,673
Foreign currency translation adjustments	$	6,287			(8,609	)		(1,080	)		(7,529	)	$	(1,242	)
Change in accumulated OCI related to postretirement healthcare plans		(614	)		(1,138	)		(409	)		(729	)		(1,343	)
December 31, 2010	$	5,673			(9,747	)		(1,489	)		(8,258	)	$	(2,585	)
Foreign currency translation adjustments	$	(1,242	)		3,718			2,662			1,056		$	(186	)
Transfer from noncontrolling interest (NCI)		—			28			—			28			28
Change in accumulated OCI related to postretirement healthcare plans		(1,343	)		1,651			595			1,056			(287	)
December 31, 2011	$	(2,585	)		5,397			3,257			2,140		$	(445	)

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.

NOTE 19 Commitments and Contingencies

LEASE COMMITMENTS:    TSYS is obligated under noncancelable operating leases for computer equipment and facilities.

The future minimum lease payments under noncancelable operating leases with remaining terms greater than one year for the next five years and thereafter and in the aggregate as of December 31, 2011, are as follows:

(in thousands)
2012	$	86,882
2013		78,946
2014		35,061
2015		9,328
2016		7,257
Thereafter		23,327
Total future minimum lease payments	$	240,801

The majority of computer equipment lease commitments come with a renewal option or an option to terminate the lease. These lease commitments may be replaced with new leases which allow the Company to continually update its computer equipment. Total rental expense under all operating leases in 2011, 2010 and 2009 was $97.5 million, $102.1 million and $105.4 million, respectively. Total rental expense under sublease arrangements in 2010 and 2009 was $675,000 and $720,000, respectively. The rental income under sublease arrangements in 2010 and 2009 was $809,000 and $863,000, respectively.

CONTRACTUAL COMMITMENTS:    In the normal course of its business, the Company maintains long-term processing contracts with its clients. These processing contracts contain commitments, including, but not limited to, minimum standards and time frames against which the Company’s performance is measured. In the event the Company does not meet its contractual commitments with its clients, the Company may incur penalties and certain clients may have the right to terminate their contracts

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with the Company. The Company does not believe that it will fail to meet its contractual commitments to an extent that will result in a material adverse effect on its financial position, results of operations or cash flows.

CONTINGENCIES:    The Company is subject to various legal proceedings and claims and is also subject to information requests, inquiries and investigations arising out of the ordinary conduct of its business. The Company establishes reserves for litigation and similar matters when those matters present loss contingencies that TSYS determines to be both probable and reasonably estimable in accordance with ASC 450, “Contingencies.” In the opinion of management, based on current knowledge and in part upon the advise of legal counsel, all matters are believed to be adequately covered by insurance, or, if not covered, the possibility of losses from such matters are believed to be remote or such matters are of such kind or involve such amounts that would not have a material adverse effect on the financial position, results of operations or cash flows of the Company if disposed of unfavorably.

GUARANTEES AND INDEMNIFICATIONS:    The Company has entered into processing and licensing agreements with its clients that include intellectual property indemnification clauses. Under these clauses, the Company generally agrees to indemnify its clients, subject to certain exceptions, against legal claims that TSYS’ services or systems infringe on certain third party patents, copyrights or other proprietary rights. In the event of such a claim, the Company is generally obligated to hold the client harmless and pay for related losses, liabilities, costs and expenses, including, without limitation, court costs and reasonable attorney’s fees. The Company has not made any indemnification payments pursuant to these indemnification clauses.

The Company has not recorded a liability for guarantees or indemnities in the accompanying consolidated balance sheet since the maximum amount of potential future payments under such guarantees and indemnities is not determinable

PRIVATE EQUITY INVESTMENTS: On May 31, 2011, the Company entered into a limited partnership agreement in connection with its agreement to invest in an Atlanta-based venture capital fund focused exclusively on investing in technology-enabled financial services companies. Pursuant to the limited partnership agreement, the

Company has committed to invest up to $20 million in the fund so long as its ownership interest in the fund does not exceed 50%. At December 31, 2011, the Company had made investments in the fund of $1.6 million.

NOTE 20 Income Taxes

The provision for income taxes includes income taxes currently payable and those deferred because of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities.

The components of income tax expense included in the consolidated statements of income were as follows:

	Years Ended December 31,
(in thousands)	2011			2010			2009
Current income tax expense:
Federal	$	83,518			98,802		$	115,301
State		4,666			4,221			4,311
Foreign		12,922			8,682			6,185
Total current income tax expense		101,106			111,705			125,797
Deferred income tax expense (benefit):
Federal		3,126			(2,970	)		(4,210	)
State		61			(643	)		947
Foreign		(1,696	)		(2,004	)		(684	)
Total deferred income tax expense (benefit)		1,491			(5,617	)		(3,947	)
Total income tax expense	$	102,597			106,088		$	121,850

	Years Ended December 31,
(in thousands)	2011		2010		2009
Components of income before income tax expense :
Domestic	$	296,475		282,492	$	300,388
Foreign		20,076		25,320		40,197
Total income before income tax expense	$	316,551		307,812	$	340,585

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Income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate of 35% to income before income taxes, noncontrolling interest and equity in income of equity investments as a result of the following:

	Years Ended December 31,
(in thousands)	2011			2010			2009
Computed “expected” income tax expense	$	110,793			107,734			119,205
Increase (decrease) in income tax expense resulting from:
International tax rate differential		1,831			(4,376	)		1,075
State income tax expense (benefit), net of federal income tax effect		3,164			2,326			3,418
Increase (decrease) in valuation allowance		3,773			2,564			(6,159	)
Tax credits		(9,044	)		(2,824	)		(4,299	)
Federal income tax expense resulting from ASC 740 Election		—			—			9,844
Deduction for domestic production activities		(5,524	)		—			—
Permanent differences and other, net		(2,396	)		664			(1,234	)
Total income tax expense	$	102,597			106,088			121,850

Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability at December 31, 2011 and 2010 relate to the following:

	At December 31,
(in thousands)	2011			2010
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$	25,937			19,884
Allowances for doubtful accounts and billing adjustments		1,113			1,304
Deferred revenue		19,031			16,244
Purchase accounting adjustments		15,889			—
Other, net		37,123			33,980
Total deferred income tax assets		99,093			71,412
Less valuation allowance for deferred income tax assets		(19,207	)		(15,434	)
Net deferred income tax assets		79,886			55,978
Deferred income tax liabilities:
Excess tax over financial statement depreciation		(42,351	)		(35,878	)
Computer software development costs		(40,339	)		(38,797	)
Purchase accounting adjustments		—			(1,438	)
Foreign currency translation		(6,432	)		(3,771	)
Other, net		(6,712	)		(4,847	)
Total deferred income tax liabilities		(95,834	)		(84,731	)
Net deferred income tax liabilities	$	(15,948	)		(28,753	)
Total net deferred tax assets (liabilities):
Current	$	12,872			11,090
Noncurrent		(28,820	)		(39,843	)
Net deferred income tax liability	$	(15,948	)		(28,753	)

As of December 31, 2011, TSYS had recognized deferred tax assets from net operating losses, capital losses and federal and state income tax credit carryforwards of $15.5 million, $1.9 million and $8.5 million, respectively. As of December 31, 2010, TSYS had recognized deferred tax assets from net operating losses, capital losses and federal and state income tax credit carry forwards of $15.3 million, $2.1 million and $2.5 million, respectively. The credits will begin to expire in the year 2012. The net operating losses will begin to expire in the year 2012.

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In assessing the realizability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

Management believes it is more likely than not that TSYS will realize the benefits of these deductible differences, net of existing valuation allowances. The valuation allowance for deferred tax assets was $19.2 million and $15.4 million at December 31, 2011 and 2010, respectively. The increase in the valuation allowance for deferred income tax assets was $3.8 million for 2011. The increase in the valuation allowance for deferred income tax assets was $2.6 million for 2010. The increase relates to foreign losses and state tax credits, which, more likely than not, will not be realized in later years.

TSYS has adopted the permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain foreign subsidiaries. As a result, TSYS considers foreign earnings related to these foreign operations to be permanently reinvested. No provision for U.S. federal and state incomes taxes has been made in our consolidated financial statements for those non-U.S. subsidiaries whose earnings are considered to be reinvested. The amount of undistributed earnings considered to be “reinvested” which may be subject to tax upon distribution was approximately $51.2 million at December 31, 2011. Although TSYS does not intend to repatriate these earnings, a distribution of these non-U.S. earnings in the form of dividends, or otherwise, would subject the Company to both U.S. federal and state income taxes, as adjusted for non-U.S. tax credits, and withholding taxes payable to the various non-U.S. countries. Determination of the amount of any unrecognized deferred income tax liability on these undistributed earnings is not practicable.

TSYS is the parent of an affiliated group that files a consolidated U.S. federal income tax return and most state and foreign income tax returns on a separate entity basis. In the normal course of business, the Company is subject to examinations by these taxing authorities unless statutory examination periods lapse. TSYS is no longer subject to U.S. federal income tax examinations for years before 2008 and with few exceptions, the Company is no longer

subject to income tax examinations from state and local or foreign tax authorities for years before 2005. There are currently no federal or foreign tax examinations in progress. However, a number of tax examinations are in progress by the relevant state tax authorities. Although TSYS is unable to determine the ultimate outcome of these examinations, TSYS believes that its liability for uncertain tax positions relating to these jurisdictions for such years is adequate.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows ⁽¹⁾:

(in millions)	Year Ended December 31, 2011
Beginning balance	$	4.5
Current activity:
Additions based on tax positions related to current year		1.4
Additions for tax positions of prior years		1.4
Reductions for tax positions of prior years		(1.6	)
Settlements		—
Net, current activity		1.2
Ending balance	$	5.7

(1) Unrecognized state tax benefits are not adjusted for the federal tax impact.

TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the consolidated statements of income. Gross accrued interest and penalties on unrecognized tax benefits totaled $0.6 million and $1.1 million as of December 31, 2011 and December 31, 2010, respectively. The total amounts of unrecognized income tax benefits as of December 31, 2011 and December 31, 2010 that, if recognized, would affect the effective tax rates are $5.4 million and $4.2 million (net of the federal benefit on state tax issues), respectively, which includes interest and penalties of $0.5 million and $1.0 million, respectively.

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NOTE 21 Employee Benefit Plans

The Company provides benefits to its employees by offering employees participation in certain defined contribution plans. The employee benefit plans through which TSYS provided benefits to its employees during 2011 are described as follows:

TSYS RETIREMENT SAVINGS PLAN:    Beginning in 2010, all qualified plans maintained by TSYS were combined into a single plan, the Retirement Savings Plan, which is designed to reward all team members of TSYS U.S.—based companies with a uniform employer contribution. The terms of the plan provide for the Company to match 100% of the employee contribution up to 4% of eligible compensation. The Company can make discretionary contributions up to another 4% based upon business conditions.

MONEY PURCHASE PLAN:    During 2009, the Company’s employees were eligible to participate in the Total System Services, Inc. Money Purchase Pension Plan, a defined contribution pension plan. The terms of the plan provide for the Company to make annual contributions to the plan equal to 7% of participant compensation, as defined.

401(K) PLAN:    During 2009, the Company’s employees were eligible to participate in the TSYS 401(k) Plan. The terms of the plan allow employees to contribute eligible pretax compensation with a discretionary company contribution up to a maximum of 7% of participant compensation, as defined, based upon the Company’s attainment of certain financial goals.

The Company’s contributions to the plans charged to expense for the years ended December 31 are as follows:

(in thousands)	2011		2010		2009
TSYS Retirement Savings Plan	$	15,951		15,430		—
Money Purchase Plan		—		—		19,307
401(k) Plan		—		—		306

STOCK PURCHASE PLAN:    The Company maintains stock purchase plans for employees and directors. Prior to July 2009, the Company made contributions equal to one-half of employee and director voluntary contributions. Beginning in July 2009, the Company changed its contribution to 15% of employee and director voluntary contributions. The funds are used to purchase presently issued and outstanding shares

of TSYS common stock on the open market at fair value for the benefit of participants. The Director Stock Purchase Plan was terminated on November 30, 2011. The Company’s contributions to these plans charged to expense for the years ended December 31 are as follows:

(in thousands)
2011	$	1,177
2010		1,260
2009		3,764

POSTRETIREMENT MEDICAL BENEFITS PLAN:    TSYS provides certain medical benefits to qualified retirees through a postretirement medical benefits plan, which is immaterial to the Company’s consolidated financial statements. The measurement of the benefit expense and accrual of benefit costs associated with the plan do not reflect the effects of the 2003 Medicare Act. Additionally, the benefit expense and accrued benefit cost associated with the plan, as well as any potential impact of the effects of the 2003 Medicare Act, are not significant to the Company’s consolidated financial statements.

NOTE 22 Segment Reporting, including Geographic Area Data and Major Customers

In June 1997, the FASB issued guidance in accordance with ASC 280, “Segment Reporting.” ASC 280 establishes standards for the way public business enterprises are to report information about operating segments in annual financial statements and requires those enterprises to report selected financial information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosures about products and services, geographic area data and major customers.

TSYS provides global payment processing and other services to card-issuing and merchant acquiring institutions in the United States and internationally through online accounting and electronic payment processing systems. During 2010, TSYS reorganized its operating segments in a manner that reflects the way the chief operating decision maker (CODM) views the business. The change involved accumulating corporate administration expenses, such as finance, legal, human resources, mergers and acquisitions and investor relations, that existed in all operating segments and categorizing them, and spin-related costs, as Corporate Administration.

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet an Atlanta-based

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merchant acquirer. TermNet’s financial results are included in the Merchant Services segment.

North America Services includes electronic payment processing services and other services provided from within the North America region. International Services includes electronic payment processing and other services provided from outside the North America region. Merchant Services includes electronic processing and other services provided to

merchant acquiring institutions.

The Company believes the terms and conditions of transactions between the segments are comparable to those which could have been obtained in transactions with unaffiliated parties. TSYS’ operating segments share certain resources, such as Information Technology support, that TSYS allocates asymmetrically.

Years ended December 31,
(in thousands)
Operating Segments	2011			2010			2009
Revenues before reimbursable items
North America Services	$	809,069			809,012			880,668
International Services		380,129			321,846			322,697
Merchant Services		373,159			337,178			232,262
Intersegment revenues		(21,659	)		(25,600	)		(28,322	)
Revenues before reimbursable items from external customers	$	1,540,698			1,442,436			1,407,305
Total revenues
North America Services	$	954,550			956,546			1,048,932
International Services		394,831			334,954			337,757
Merchant Services		487,997			458,921			327,055
Intersegment revenues		(28,412	)		(32,844	)		(36,261	)
Revenues from external customers	$	1,808,966			1,717,577			1,677,483
Depreciation and amortization
North America Services	$	78,155			78,834			84,577
International Services		51,888			40,792			34,791
Merchant Services		36,124			40,298			32,590
Corporate Administration		2,998			3,003			3,690
Total depreciation and amortization	$	169,165			162,927			155,648
Segment operating income
North America Services	$	253,844			244,989			285,409
International Services		41,408			42,689			57,654
Merchant Services		112,986			102,444			71,437
Corporate Administration		(85,782	)		(80,693	)		(70,474	)
Operating income	$	322,456			309,429			344,026
At December 31,	2011			2010			2009
Total assets
North America Services	$	1,621,664			1,632,882			1,535,129
International Services		433,203			408,880			379,606
Merchant Services		487,858			460,750			215,855
Intersegment assets		(684,333	)		(550,251	)		(419,636	)
Total assets	$	1,858,392			1,952,261			1,710,954

GEOGRAPHIC AREA DATA:    The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas:

	At December 31,
(in millions)	2011		2010
United States	$	194.8		203.8
Europe		52.4		58.3
Japan		9.7		11.3
Other		9.7		26.7
Totals	$	266.6		300.1

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The following geographic area data represents revenues for the years ended December 31 based on the domicile of the Company’s customers:

(in millions)	2011		%		2010		%		2009		%
United States	$	1,227.8		67.9	$	1,204.4		70.1	$	1,183.8		70.6
Europe		283.5		15.7		250.2		14.6		269.4		16.1
Canada		171.5		9.5		161.9		9.4		139.7		8.3
Japan		76.3		4.2		61.3		3.6		48.9		2.9
Mexico		7.8		0.4		7.9		0.5		8.1		0.5
Other		42.1		2.3		31.9		1.8		27.6		1.6
Totals	$	1,809.0		100.0	$	1,717.6		100.0	$	1,677.5		100.0

GEOGRAPHIC AREA REVENUE BY OPERATING SEGMENT:    The following table reconciles segment revenue to revenues by geography for the years ended December 31:

	North America Services						International Services						Merchant Services
(in millions)	2011		2010		2009		2011		2010		2009		2011		2010		2009
United States	$	741.5		748.2		859.5	$	—		—		—	$	486.3		456.2		324.3
Europe		0.7		0.8		0.8		282.8		249.4		268.6		—		—		—
Canada		171.1		161.4		139.2		—		—		—		0.4		0.5		0.5
Japan		—		—		—		76.3		61.3		48.9		—		—		—
Mexico		7.8		7.9		8.1		—		—		—		—		—		—
Other		9.6		9.3		8.7		31.8		21.5		18.1		0.7		1.1		0.8
Totals	$	930.7		927.6		1,016.3	$	390.9		332.2		335.6	$	487.4		457.8		325.6

MAJOR CUSTOMER:    For the years ended December 31, 2011, 2010 and 2009, the Company had one major customer which accounted for approximately $210.9 million, or 11.7%, $221.0 million, or 12.9%, and $217.7 million, or 12.0%, respectively, of total revenues. Revenues from the major customer for the years ended December 31, 2011, 2010 and 2009, respectively, are primarily attributable to the North America Services segment and the Merchant Services segment.

NOTE 23 Supplemental Cash Flow Information

Nonvested Share Awards

The Company issued shares of TSYS common stock to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued in the form of nonvested stock bonus awards for services to be provided in the future by such officers and employees. Beginning in 2011, the grants to the Board of Directors were fully vested on the date of grant. Refer to Note 16 for more information on nonvested share awards.

Equipment and Software Acquired Under Capital Lease Obligations

The Company acquired computer equipment and software under capital lease in the amount of $8.1 million, $14.9 million and $6.7 million in 2011, 2010 and 2009, respectively.

NOTE 24 Acquisitions

TermNet Merchant Services, Inc.

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet, an Atlanta-based merchant acquirer, for $42 million in cash. TermNet provides merchant services to qualified merchants serving a diverse merchant base of over 18,000 merchants. The acquisition of TermNet expands the Company’s presence in the merchant acquiring industry. The results of operations for TermNet have been included in the Company’s results beginning May 2, 2011, and are included in the Merchant Services segment. The goodwill of $28.9 million recorded arises largely from synergies and economies of scale expected to be realized from combining the operations of TSYS and TermNet. Goodwill recognized in the acquisition of TermNet is not deductible for income tax purposes.

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The following table summarizes the consideration paid for TermNet and the recognized amounts of identifiable assets acquired and liabilities assumed effective May 2, 2011:

(in thousands)
Cash and restricted cash	$	2,691
Accounts receivable, net		10,253
Other assets		1,516
Identifiable intangible assets		11,740
Goodwill		28,918
Accounts payable		(5,578	)
Accrued compensation		(2,683	)
Deferred income tax liability		(4,506	)
Other liabilities		(351	)
Total consideration	$	42,000

The fair value of accounts receivable, accounts payable, accrued compensation, and other liabilities approximates the carrying amount of those assets and liabilities at the acquisition date. The fair value of accounts receivable due under agreements with customers is $10.3 million. The gross amount due under the agreements is $10.4 million, of which approximately $100,000 is expected to be uncollectible. Of the $42 million in consideration paid for TermNet, $8.4 million has been placed in escrow for a period of 18 months to secure certain claims that may be brought against the escrowed consideration by TSYS pursuant to the merger agreement. Consideration is contingent and may be returned to the Company pursuant to indemnification commitments made by, in general, the shareholders of TermNet related to, among other things, a breach of the representations and warrantees made in the merger agreement, possible excess merchant chargebacks, and losses arising out of certain asset dispositions and lease terminations. Such indemnification commitments are recognized as a possible asset receivable and measured at fair value. Based upon the probability of various possible outcomes related to the indemnification commitments, TSYS has determined that the fair value of any receivable asset would be immaterial. The maximum amount of contingent consideration returnable to the Company related to certain indemnification commitments made by TermNet is limited to the consideration held in escrow. The maximum amount of contingent consideration returnable to the Company related to fundamental representations and warranties made by TermNet is unlimited.

Identifiable intangible assets acquired in the TermNet acquisition include customer relationships, channel relationships, and non-compete agreements. The identifiable intangible assets had no significant estimated residual value. These intangible assets are being amortized over their estimated useful lives of 2 to 10 years based on the pattern of expected future economic benefit, which approximates a straight-line basis over the useful lives of the assets. The fair value of the acquired identifiable intangible assets of $11.7 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. The fair values and useful lives of the identified intangible assets were primarily determined using forecasted cash flows, which included estimates for certain assumptions such as revenues, expenses, attrition rates, and royalty rates. The estimated fair value of identifiable intangible assets acquired in the acquisition of TermNet and the related estimated weighted average useful lives are as follows:

	Fair Value (in millions)		Weighted Average Useful Lives
Customer relationships	$	10.0		7.0 years
Channel relationships		1.6		10.0 years
Covenants-not-to-compete		0.1		2.0 years
Total acquired identifiable intangible assets	$	11.7		7.3 years

The fair value measurement of the identifiable intangible assets is based on significant inputs that are not observable in the market and therefore, represents a Level 3 measurement as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 14%, (c) a pre-tax royalty rate range of 3-10%, (d) an attrition rate of 20%, (e) an effective tax rate of 36%, and (f) a terminal value based on a long-term sustainable growth rate of 3%.

In connection with the TermNet acquisition, TSYS incurred $192,000 in acquisition-related costs primarily related to professional legal, finance, and accounting costs. These costs were expensed as incurred and are included in selling, general, and administrative expenses in the income statement for 2011.

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TSYS Merchant Solutions

On March 1, 2010, TSYS announced the signing of an Investment Agreement with First National Bank of Omaha (FNBO) to form a new joint venture company, First National Merchant Solutions (FNMS). On January 4, 2011, TSYS announced it had acquired the remaining 49 interest in FNMS, effective January 1, 2011, from FNBO. The entity was rebranded as TSYS Merchant Solutions (TMS).

TMS offers transaction processing, merchant support and underwriting, and business and value-added services, as well as Visa- and MasterCard-branded prepaid cards for businesses of any size.

Under the terms of the Investment Agreement, TSYS acquired 51% ownership of FNMS Holding, LLC (“FNMS Holding”), which owned 100% of FNMS, for approximately $150.5 million, while FNBO owned the remaining 49%. The transaction closed on April 1, 2010.

The goodwill amount of $155.5 million arising from the acquisition consists largely of economies of scale expected to be realized from combining the operations of TSYS and TMS. TMS is included within the Merchant Services segment, and as such, all of the goodwill was assigned to that segment. The goodwill recognized is expected to be deductible for income tax purposes.

The following table summarizes the consideration paid for TMS and the amounts of the assets acquired and liabilities assumed recognized on April 1, 2010 (the acquisition date), as well as the fair value at the acquisition date of the noncontrolling interest in TMS. TSYS assumed no liabilities in connection with the acquisition.

(in thousands)
Consideration:
Cash	$	150,450
Equity instruments		—
Contingent consideration arrangement		—
Fair value of total consideration transferred		150,450
Fair value of TSYS’ equity interest in TMS held before the business combination		—
	$	150,450
Acquisition-related costs (included in selling, general, and administrative expenses in TSYS’ income statement for the twelve months ended December 31, 2010)	$	4,130
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash	$	1,919
Property and equipment		1,788
Software		243
Identifiable intangible assets		100,800
Other assets		1,204
Financial liabilities		—
Liability arising from a contingency		—
Total identifiable net assets		105,954
Noncontrolling interest in TMS		(111,000	)
Goodwill		155,496
	$	150,450

The Investment Agreement includes a contingent right of TSYS to receive a return of consideration paid (“contingently returnable consideration”) if certain specified major customer contracts are terminated or modified prior to the first anniversary of the closing, which has since expired. Contingently returnable consideration is recognized as an asset and measured at fair value. Based upon the probability of outcomes, TSYS determined the fair value of the contingently returnable consideration would approximate zero. The maximum amount of contingently returnable consideration is not significant.

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The fair value of the acquired identifiable intangible assets of $100.8 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. At the time of the acquisition, TSYS had identified certain intangible assets that are expected to generate future earnings for the Company: customer-related intangible assets (such as customer lists), contract-based intangible assets (such as referral agreements), technology, and trademarks. The useful lives of the identified intangible assets were primarily determined by forecasted cash flows, which include estimates for certain assumptions such as revenues, expenses, attrition rates, and royalty rates. The useful lives of these identified assets ranged from 3 to 10 years and are being amortized on a straight-line basis based upon their estimated pattern of economic benefit.

This fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate range of 4% to 14%, (c) a royalty rate range of 1.5% to 7%, (d) an attrition rate range of 10% to 30%, and (e) an effective tax rate of approximately 36%.

The fair value of the noncontrolling interest in TMS, owned by a private company, was estimated by applying the income and market approaches. In particular, a discounted cash flow method, a guideline companies method, and a recent equity transaction were employed. This fair value measurement is based on significant inputs that are both observable (Level 2) and non-observable (Level 3) in the market as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant data and developed by Company management, (b) a discount rate range of 12% to 14%, (c) a terminal value based on long-term sustainable growth rates ranging between 3% and 5%, (d) an effective tax rate of approximately 36%, (e) financial multiples of companies deemed to be similar to TMS, and (f) adjustments because of the lack of control or lack of marketability that market participants would consider when estimating the fair value of the noncontrolling interest in TMS.

With the acquisition of TMS on April 1, 2010, TSYS’ incremented revenue compared to the prior year associated with acquisitions was $32.7 million and $97.7 million for the years ended December 31, 2011 and 2010, respectively. For the years ended December 31, 2011 and 2010, TSYS has included approximately $4.2 million and $12.7 million, respectively, in income netted against acquisition related costs associated with TMS.

Other

On October 1, 2011, TSYS acquired contract-based intangible assets in its Merchant Services segment for $2.6 million. These intangible assets are being amortized on a straight-line basis over their estimated useful lives of five years.

In May 2011, TSYS made a payment of $6.0 million of contingent merger consideration in connection with the purchase of Infonox, which was accounted for under SFAS No. 141. The payment of the contingent merger consideration by TSYS was recorded as goodwill and had no impact on our results of operations.

Pro forma Results of Operations

The pro forma revenue and earnings of TermNet are not material to the consolidated financial statements. The amounts of TMS’ revenue and earnings included in TSYS’ consolidated income statement for the years ended December 31, 2011 and 2010, and the pro forma revenue and earnings of the combined entity had the acquisition date been January 1, 2010 are:

(in thousands)	Revenue		Net Income Attributable to TSYS Common Shareholders		Basic EPS Attributable to TSYS Common Shareholders		Diluted EPS Attributable to TSYS Common Shareholders
Actual from 1/1/2011-12/31/2011	$	1,808,966	$	220,559	$	1.15	$	1.15
Actual from 1/1/2010-12/31/2010	$	1,717,577	$	193,947	$	0.99	$	0.99
Supplemental pro forma for 1/1/2010-12/31/2010	$	1,745,244	$	202,242	$	1.03	$	1.03

NOTE 25 Collaborative Arrangement

In January 2009, TSYS adopted the authoritative guidance under ASC 808, “Collaborative Arrangements.” The guidance under ASC 808 is effective for reporting periods beginning after December 15, 2008, and it requires restatement of prior periods for all collaborative arrangements existing as of the effective date.

TSYS has a 45% ownership interest in an enterprise jointly owned with two other entities which operates aircraft for the owners’ internal use. The arrangement allows each entity access to the aircraft and each entity pays for its usage of the aircraft. Each quarter, the net operating results of the enterprise are shared among the owners based on their respective ownership percentage.

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TSYS records its usage of the aircraft and its share of net operating results of the enterprise in selling, general and administrative expenses.

NOTE 26 Earnings Per Share

The following table illustrates basic and diluted EPS under the guidance of ASC 260:

	December 31, 2011					December 31, 2010					December 31, 2009
(in thousands, except per share data)	Common Stock			Participating Securities		Common Stock			Participating Securities		Common Stock			Participating Securities
Basic EPS:
Net income	$	220,559					193,947					215,213
Less income allocated to nonvested awards		(805	)		805		(959	)		959		(1,644	)		1,644
Net income allocated to common stock for EPS calculation(a)	$	219,754			805		192,988			959		213,569			1,644
Average common shares outstanding(b)		191,239			707		195,378			975		195,623			1,511
Basic EPS(a)/(b)	$	1.15			1.14		0.99			0.98		1.09			1.09
Diluted EPS:
Net income	$	220,559					193,947					215,213
Less income allocated to nonvested awards		(804	)		804		(959	)		959		(1,644	)		1,644
Net income allocated to common stock for EPS calculation(c)	$	219,755			804		192,988			959		213,569			1,644
Average common shares outstanding		191,239			707		195,378			975		195,623			1,511
Increase due to assumed issuance of shares related to common equivalent shares outstanding		345					193					63
Average common and common equivalent shares outstanding(d)		191,584			707		195,571			975		195,686			1,511
Diluted EPS(c)/(d)	$	1.15			1.14		0.99			0.98		1.09			1.09

The diluted EPS calculation excludes stock options and nonvested awards that are convertible into 3.6 million common shares for the year ended December 31, 2011, and excludes 9.0 million and 7.0 million common shares for the years ended December 31, 2010 and 2009, respectively, because their inclusion would have been anti-dilutive.

67

Report of Independent Registered Public Accounting Firm

The Board of Directors

Total System Services, Inc.:

We have audited the accompanying consolidated balance sheets of Total System Services, Inc. and subsidiaries (the Company) as of December 31, 2011 and 2010, and the related consolidated statements of income, cash flows, and equity and comprehensive income for each of the years in the three-year period ended December 31, 2011. We also have audited the Company’s internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audits of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Total System Services, Inc. and subsidiaries as of December 31, 2011 and 2010, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2011, in conformity with U.S. generally accepted accounting principles. Also in our opinion, Total System Services, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Atlanta, Georgia

February 24, 2012

68

Management’s Report on Internal Control Over Financial Reporting

The management of Total System Services, Inc. (the Company) is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. The Company maintains accounting and internal control systems which are intended to provide reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, transactions are executed in accordance with management’s authorization and accounting records are reliable for preparing financial statements in accordance with accounting principles generally accepted in the United States.

Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, risk.

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2011. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission in Internal Control — Integrated Framework.

Based on our assessment management believes that, as of December 31, 2011, the Company’s internal control over financial reporting is effective based on those criteria.

KPMG LLP, the independent registered public accounting firm who audited the Company’s consolidated financial statements, has issued an attestation report on the effectiveness of internal control over financial reporting as of December 31, 2011 that appears on the proceeding page.

Philip W. Tomlinson	James B. Lipham
Chairman of the Board &	Senior Executive Vice President &
Chief Executive Officer	Chief Financial Officer

69

Quarterly Financial Data (Unaudited), Stock Price, Dividend Information

TSYS’ common stock trades on the New York Stock Exchange (NYSE) under the symbol “TSS.” Price and volume information appears under the abbreviation “TotlSysSvc” in NYSE daily stock quotation listings. As of February 21, 2012, there were 27,064 holders of record of TSYS common stock, some of whom are holders in nominee name for the benefit of different shareholders.

The fourth quarter dividend of $0.10 per share was declared on October 25, 2011, and was paid January 3, 2012, to shareholders of record on December 15, 2011. Total dividends declared in 2011 and in 2010 amounted to $59.2 million and $54.9 million, respectively. It is the present intention of the Board of Directors of TSYS to continue to pay cash dividends on its common stock.

Presented here is a summary of the unaudited quarterly financial data for the years ended December 31, 2011 and 2010.

(in thousands, except per share data)		First Quarter		Second Quarter		Third Quarter		Fourth Quarter
2011	Revenues	$	429,430		447,555		459,747		472,234
	Operating income		73,028		78,530		81,180		89,718
	Net income attributable to TSYS common shareholders		48,790		53,747		58,148		59,874
	Basic earnings per share attributable to TSYS common shareholders		0.25		0.28		0.30		0.31
	Diluted earnings per share attributable to TSYS common shareholders		0.25		0.28		0.30		0.31
	Cash dividends declared		0.07		0.07		0.07		0.10
	Stock prices:
	High		18.16		18.64		17.25		19.71
	Low		17.99		18.36		16.86		19.54
	Close		18.02		18.58		16.93		19.56
2010	Revenues	$	413,464		430,886		433,236		439,991
	Operating income		79,713		79,828		78,914		70,974
	Net income attributable to TSYS common shareholders		51,328		49,703		45,743		47,173
	Basic earnings per share attributable to TSYS common shareholders		0.26		0.25		0.23		0.24
	Diluted earnings per share attributable to TSYS common shareholders		0.26		0.25		0.23		0.24
	Cash dividends declared		0.07		0.07		0.07		0.07
	Stock prices:
	High		17.75		16.99		15.74		16.10
	Low		14.11		13.52		13.41		14.97
	Close		15.66		13.60		15.24		15.38

70

STOCK PERFORMANCE GRAPH

The following graph compares the yearly percentage change in cumulative shareholder return on TSYS stock with the cumulative total return of the Standard & Poor’s 500 Index and the Standard & Poor’s Systems Software Index for the last five fiscal years (assuming a $100 investment on December 31, 2006 and reinvestment of all dividends).

COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN

AMONG TSYS, THE S&P 500 INDEX

AND THE S&P SYSTEMS SOFTWARE INDEX

	2006		2007		2008		2009		2010		2011
TSYS	$	100	$	120	$	61	$	76	$	69	$	90
S&P 500	$	100	$	105	$	66	$	84	$	97	$	99
S&P SS	$	100	$	120	$	75	$	113	$	119	$	107

71

EX-21.1

Exhibit 21.1

SUBSIDIARIES OF TOTAL SYSTEM SERVICES, INC.

Ownership Percentage	Name	Place of Incorporation
100%	Columbus Depot Equipment Company	Georgia
	99%     TSYS Merchant Solutions, LLC (1)	Delaware
	100%     TermNet Merchant Services, Inc.	Georgia
100%	TSYS Canada, Inc.	Georgia
100%	TSYS Managed Services Canada, Inc.	Ontario
100%	TSYS U.S. Holdings, Inc.	Georgia
100%	Columbus Productions, Inc.	Georgia
100%	TSYS Japan Co., Ltd.	Japan
	54.08%     GP Network Corporation	Japan
100%	TSYS Servicos de Transacoes Eletronicas Ltda (2)	Brazil
100%	Total System Services Holding Europe LP (3)	England
	100%     Total System Services Processing Europe Limited	England
	100%     TSYS Europe (Netherlands) B.V.	Netherlands
	100%     TSYS Europe (Spain) S.L.	Spain
	100%     TSYS Europe (Deutschland) GmBH	Germany
	100%     TSYS Europe (Italia) S.r.l	Italy
	100%     TSYS Card Tech Limited	England
	100%     TSYS Card Tech Services Limited	Cyprus
	100%     TSYS Card Tech Services (Malaysia) Limited	Malaysia
	100%     TSYS Card Tech Services India Private Limited (4)	India
	100%     TSYS – Rus L.L.C.	Russia
	55%     TSYS Managed Services EMEA Limited	England
	100%     TSYS Managed Services EMEA B.V.	Netherlands
	100%     TSYS Managed Services EMEA (Netherlands) B.V.	Netherlands
100%	TSYS Acquiring Solutions, L.L.C.	Delaware
	100%     Infonox on the Web	California
	100%     Infonox Software Private Limited (5)	India
49%	Total System Services de Mexico, S.A. de C.V.	Mexico
49%	TSYS Servicios Corporativos	Mexico
44.56%	China Unionpay Data Services Company Limited	China

(1) 1% is owned by TSYS U.S. Holdings, Inc.

(2) Less than .1% is owned by Columbus Depot Equipment Company.

(3) 1% is owned by Columbus Depot Equipment Company.

(4) Less than .1% is owned by TSYS Card Tech Services (Malaysia) Limited.

(5) Less than .1% is owned by TSYS Acquiring Solutions, L.L.C.

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Total System Services, Inc.:

We consent to the incorporation by reference in the registration statements (No. 2-92497, No. 333-25401, No. 333-41775, No. 333-104142, No. 333-142791, and No. 333-148449) on Form S-8 and the registration statement (No. 333-177897) on Form S-3 of Total System Services, Inc. of our report dated February 24, 2012, with respect to the consolidated balance sheets of Total System Services, Inc. and subsidiaries as of December 31, 2011 and 2010, and the related consolidated statements of income, cash flows, and equity and comprehensive income for each of the years in the three-year period ended December 31, 2011, and all related financial statement schedules, and the effectiveness of internal control over financial reporting as of December 31, 2011, which report appears in the December 31, 2011 annual report on Form 10-K of Total System Services, Inc.

/s/ KPMG LLP

Atlanta, Georgia

February 24, 2012

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Philip W. Tomlinson, certify that:

1. I have reviewed this annual report on Form 10-K of Total System Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 24, 2012	/s/ Philip W. Tomlinson
	Philip W. Tomlinson
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, James B. Lipham, certify that:

1. I have reviewed this annual report on Form 10-K of Total System Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a- 15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 24, 2012	/s/ James B. Lipham
	James B. Lipham
	Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION OF PERIODIC REPORT

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, Philip W. Tomlinson, the Chief Executive Officer of Total System Services, Inc. (the “Company”), and James B. Lipham, the Chief Financial Officer of the Company, hereby certify that, to the best of his knowledge:

(1) The Company’s Annual Report on Form 10-K for the year ended December 31, 2011 (the “Report”) fully complies with the requirements of section 13(a) or section 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

February 24, 2012	/s/ Philip W. Tomlinson
	Philip W. Tomlinson
	Chief Executive Officer
February 24, 2012	/s/ James B. Lipham
	James B. Lipham
	Chief Financial Officer

This certification “accompanies” the Form 10-K to which it relates, is not deemed filed with the SEC and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-K, irrespective of any general incorporation language contained in such filing.)

XML

Property and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2011

Property and Equipment Balances

Property and equipment balances at December 31 are as follows:

(in thousands)	2011		2010
Computer and other equipment	$	248,592		230,773
Buildings and improvements		230,797		227,881
Furniture and other equipment		127,425		125,627
Land		16,794		16,729
Other		130		16,461
Total property and equipment		623,738		617,471
Less accumulated depreciation and amortization		357,130		317,369
Property and equipment, net	$	266,608		300,102

XML

Temporary Differences between Financial Statement Carrying Amounts and Tax Bases of Assets and Liabilities that Give Rise to Significant Portions of Net Deferred Tax Liability (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$ 25,937	$ 19,884
Allowances for doubtful accounts and billing adjustments	1,113	1,304
Deferred revenue	19,031	16,244
Purchase accounting adjustments	15,889
Other, net	37,123	33,980
Total deferred income tax assets	99,093	71,412
Less valuation allowance for deferred income tax assets	(19,207)	(15,434)
Net deferred income tax assets	79,886	55,978
Deferred income tax liabilities:
Excess tax over financial statement depreciation	(42,351)	(35,878)
Computer software development costs	(40,339)	(38,797)
Purchase accounting adjustments		(1,438)
Foreign currency translation	(6,432)	(3,771)
Other, net	(6,712)	(4,847)
Total deferred income tax liabilities	(95,834)	(84,731)
Net deferred income tax liabilities	(15,948)	(28,753)
Total net deferred tax assets (liabilities):
Current	12,872	11,090
Noncurrent	(28,820)	(39,843)
Net deferred income tax liabilities	$ (15,948)	$ (28,753)

XML

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2011

Basic and Diluted EPS under the Guidance of ASC 260

The following table illustrates basic and diluted EPS under the guidance of ASC 260:

	December 31, 2011					December 31, 2010					December 31, 2009
(in thousands, except per share data)	Common Stock			Participating Securities		Common Stock			Participating Securities		Common Stock			Participating Securities
Basic EPS:
Net income	$	220,559					193,947					215,213
Less income allocated to nonvested awards		(805	)		805		(959	)		959		(1,644	)		1,644
Net income allocated to common stock for EPS calculation(a)	$	219,754			805		192,988			959		213,569			1,644
Average common shares outstanding(b)		191,239			707		195,378			975		195,623			1,511
Basic EPS(a)/(b)	$	1.15			1.14		0.99			0.98		1.09			1.09
Diluted EPS:
Net income	$	220,559					193,947					215,213
Less income allocated to nonvested awards		(804	)		804		(959	)		959		(1,644	)		1,644
Net income allocated to common stock for EPS calculation(c)	$	219,755			804		192,988			959		213,569			1,644
Average common shares outstanding		191,239			707		195,378			975		195,623			1,511
Increase due to assumed issuance of shares related to common equivalent shares outstanding		345					193					63
Average common and common equivalent shares outstanding(d)		191,584			707		195,571			975		195,686			1,511
Diluted EPS(c)/(d)	$	1.15			1.14		0.99			0.98		1.09			1.09

XML

Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2011

Income Tax Effects Allocated to and the Cumulative Balance of Each Component of Accumulated Other Comprehensive Income (Loss)

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

(in thousands)	Beginning Balance			Pretax amount			Tax effect			Net-of-Tax Amount			Ending Balance
December 31, 2008	$	28,322			(43,121	)		(8,172	)		(34,949	)	$	(6,627	)
Foreign currency translation adjustments	$	(5,858	)		14,140			1,995			12,145		$	6,287
Change in accumulated OCI related to postretirement healthcare plans		(769	)		235			80			155			(614	)
December 31, 2009	$	(6,627	)		14,375			2,075			12,300		$	5,673
Foreign currency translation adjustments	$	6,287			(8,609	)		(1,080	)		(7,529	)	$	(1,242	)
Change in accumulated OCI related to postretirement healthcare plans		(614	)		(1,138	)		(409	)		(729	)		(1,343	)
December 31, 2010	$	5,673			(9,747	)		(1,489	)		(8,258	)	$	(2,585	)
Foreign currency translation adjustments	$	(1,242	)		3,718			2,662			1,056		$	(186	)
Transfer from noncontrolling interest (NCI)		—			28			—			28			28
Change in accumulated OCI related to postretirement healthcare plans		(1,343	)		1,651			595			1,056			(287	)
December 31, 2011	$	(2,585	)		5,397			3,257			2,140		$	(445	)

XML

Segment Reporting, including Geographic Area Data and Major Customers - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Person	Dec. 31, 2010 Person	Dec. 31, 2009 Person
Segment Reporting Information [Line Items]
Entity-wide revenue, major customer, number	1	1	1
Entity-wide revenue, major customer, amount	$ 210.9	$ 221.0	$ 217.7
Percentage of total revenues, by major customer	11.70%	12.90%	12.00%

XML

Significant Components of Contract Acquisition Costs (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Acquired Finite-Lived Intangible Assets [Line Items]
Conversion costs, net	$ 88,765	$ 80,521
Payments for processing rights, net	74,222	85,730
Total	$ 162,987	$ 166,251

XML

Summary of Consideration Paid and Recognized Amounts of Assets Acquired and Liabilities Assumed (Detail) (TermNet, USD $) In Thousands, unless otherwise specified	May 02, 2011
TermNet
Business Acquisition [Line Items]
Cash and restricted cash	$ 2,691
Accounts receivable, net	10,253
Other assets	1,516
Identifiable intangible assets	11,740
Goodwill	28,918
Accounts payable	(5,578)
Accrued compensation	(2,683)
Deferred income tax liability	(4,506)
Other liabilities	(351)
Total consideration	$ 42,000

XML

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended				12 Months Ended								12 Months Ended					12 Months Ended			1 Months Ended	12 Months Ended			1 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Merchant services	Dec. 31, 2011 Minimum	Dec. 31, 2011 Maximum	Dec. 31, 2011 Perpetual and site licenses Year	Dec. 31, 2011 Licensed computer software Year	Dec. 31, 2011 Acquisition technology intangibles Year	Dec. 31, 2011 Software development costs Year	Dec. 31, 2011 Internal-use software Year	Dec. 31, 2011 Goodwill	Dec. 31, 2011 Other intangible assets Year	Dec. 31, 2011 TSYS de Mexico	Dec. 31, 2010 TSYS de Mexico	Dec. 31, 2011 CUP Data	Dec. 31, 2010 CUP Data	Dec. 31, 2011 Buildings and improvements Year	Dec. 31, 2011 Computer and other equipment Year	Dec. 31, 2011 Furniture and other equipment Year	May 02, 2011 TermNet Year	Dec. 31, 2011 TermNet	Dec. 31, 2011 FNMS Holding, LLC	Mar. 31, 2010 FNMS Holding, LLC	Mar. 31, 2010 TSYS Merchant Solutions Year	Dec. 31, 2011 TSYS Merchant Solutions	Dec. 31, 2010 TSYS Merchant Solutions	Apr. 30, 2010 TSYS Merchant Solutions
Significant Accounting Policies [Line Items]
Business acquisition, effective date																						2011-05-02				2010-04-01
Business acquisition, percentage of ownership																								51.00%			49.00%	51.00%
Accounts receivable, allowance for doubtful accounts and billing adjustments	$ 4,100,000	$ 4,500,000
Property and equipment, estimated useful live, minimum																		5	2	3
Property and equipment, estimated useful live, maximum																		40	5	15
Intangible assets, estimated useful live, minimum							3			3	3		3								2				3
Intangible assets, estimated useful live, maximum							10	10		10	5		10								10				10
Software technology assets resulting from acquisitions, estimated useful live, minimum									5
Software technology assets resulting from acquisitions, estimated useful live, maximum									9
Equity method investment, percentage of ownership														49.00%		44.56%
Equity investments	82,924,000	77,127,000										50,600,000		6,814,000	6,648,000	76,110,000	70,479,000
Goodwill	355,498,000	320,399,000	165,896,000																						155,496,000
Percentage of total outstanding equity interests																							49.00%
Payment for acquiring remaining 49-percent interest																							174,100,000
Cash used in acquisitions and equity investments, net of cash acquired	47,909,000	148,531,000	294,000																				169,600,000
Trade name purchased																							4,500,000
Elimination of redeemable noncontrolling interest																							144,600,000
Reserve for merchant loss				397,000
Long-term processing contracts with large financial institutions and other merchant acquirers, range					3 years	8 years
Estimated forfeiture rate					0.00%	10.00%
Advertising expenses	$ 813,000	$ 690,000	$ 327,000

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Summary Of TSYS Equity Investments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Schedule of Equity Method Investments [Line Items]
Equity investments	$ 82,924	$ 77,127
CUP Data
Schedule of Equity Method Investments [Line Items]
Equity investments	76,110	70,479
TSYS de Mexico
Schedule of Equity Method Investments [Line Items]
Equity investments	$ 6,814	$ 6,648

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Purchases of Common Stock on a Monthly Basis (Detail) (USD $)	1 Months Ended		3 Months Ended	9 Months Ended	21 Months Ended
	Dec. 29, 2011	Dec. 31, 2011	Dec. 31, 2011	May 31, 2010	Dec. 31, 2011	Nov. 30, 2011	Oct. 31, 2011
Equity, Class of Treasury Stock [Line Items]
Total Number of Shares Purchased	400	2,400,000	2,400,000	3,100,000	6,600,000
Average Price Paid per Share		$ 19.89	$ 19.89	$ 14.60	$ 18.28
Total Number of Cumulative Shares Purchased as Part of Publicly Announced Plans or Programs		9,693,000	9,693,000		9,693,000	7,293,000	7,293,000
Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs		5,307,000	5,307,000		5,307,000	7,707,000	7,707,000

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Summary of Weighted Average Assumptions and Fair Value of Options

The following table summarizes the weighted average assumptions, and the weighted average fair value of the options:

	2011			2010			2009
Number of options granted		716,508			2,176,963			1,047,949
Weighted average exercise price	$	17.61		$	16.01		$	13.11
Risk-free interest rate		2.96	%		2.65	%		3.19	%
Expected volatility		29.98	%		30.00	%		42.00	%
Expected term (years)		8.5			4.9			8.6
Dividend yield		1.59	%		1.79	%		2.14	%
Weighted average fair value	$	5.78		$	4.11		$	5.31

Summary of Stock Option Activity and Changes during the Year

A summary of TSYS’ stock option activity as of December 31, 2011, 2010 and 2009, and changes during the years ended on those dates is presented below:

	2011					2010					2009
(in thousands, except per share data)	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Options:
Outstanding at beginning of year		8,810		$	23.40		6,955		$	25.54		6,185		$	27.59
Granted		717			17.61		2,177			15.89		1,048			13.11
Exercised		(597	)		13.51		(41	)		13.11		(1	)		1.83
Forfeited/canceled		(2,848	)		29.46		(281	)		19.83		(277	)		24.36
Outstanding at end of year		6,082		$	20.61		8,810		$	23.40		6,955		$	25.54
Options exercisable at year-end		3,122		$	25.00		5,712		$	27.48		5,357		$	28.15
Weighted average fair value of options granted during the year				$	5.78				$	4.11				$	5.31

	Outstanding			Exercisable
Average remaining contractual life (in years)		4.9			4.0
Aggregate intrinsic value (in thousands)	$	(6,401	)	$	(16,967	)

Summary of Stock Option Exercises

The table below summarizes these stock option exercises by year:

	Options Exercised		Shares Issued from Treasury		Intrinsic Value
2011		597,161		597,161	$	3,627,000
2010		41,403		41,403	$	90,400
2009		1,205		1,205	$	14,300

Non vested Restricted Awards

Summary of Number of Shares Granted Each Year

The following table summarizes the number of shares granted each year:

	2011		2010		2009
Number of shares		206,040		197,186		513,920
Market value	$	3.6 million	$	3.1 million	$	6.8 million

Summarized Status of Nonvested Shares and Changes during the Periods

A summary of the status of TSYS’ nonvested shares as of December 31, 2011, 2010 and 2009, respectively, and the changes during the periods are presented below:

	2011					2010					2009
Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value
Outstanding at beginning of year		821		$	16.91		1,084		$	18.60		1,014		$	23.46
Granted		206			17.67		197			15.55		514			13.28
Vested		(376	)		17.60		(416	)		20.63		(414	)		23.77
Forfeited/canceled		(33	)		15.71		(44	)		17.32		(30	)		20.34
Outstanding at end of year		618		$	16.80		821		$	16.91		1,084		$	18.60

Performance Based Shares

Summary of Awards Authorized

A summary of the awards authorized in each year is below:

Year of Initial Award	Total Number of Shares Awarded		Potential Number of Performance-Based Shares to be Vested
2011		263,292		263,292	(2014	)
2010		279,831		279,831	(2013	)
2008		182,816		73,125	(2012-2014	)

Summarized Status of Performance-based Nonvested Shares and Changes during the Period

A summary of the status of TSYS’ performance-based nonvested shares as of December 31, 2011, 2010 and 2009, respectively, and changes during those periods are presented below:

	2011					2010					2009
Performance-based Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value
Outstanding at beginning of year		316		$	15.65		62		$	13.69		62		$	23.32
Granted		300			17.63		316			15.65		62			13.69
Vested		(36	)		15.61		(62	)		13.69		(62	)		23.32
Forfeited/canceled		—			—		—			—		—			—
Outstanding at end of year		580		$	16.68		316		$	15.65		62		$	13.69

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Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share

NOTE 26 Earnings Per Share

The following table illustrates basic and diluted EPS under the guidance of ASC 260:

	December 31, 2011					December 31, 2010					December 31, 2009
(in thousands, except per share data)	Common Stock			Participating Securities		Common Stock			Participating Securities		Common Stock			Participating Securities
Basic EPS:
Net income	$	220,559					193,947					215,213
Less income allocated to nonvested awards		(805	)		805		(959	)		959		(1,644	)		1,644
Net income allocated to common stock for EPS calculation(a)	$	219,754			805		192,988			959		213,569			1,644
Average common shares outstanding(b)		191,239			707		195,378			975		195,623			1,511
Basic EPS(a)/(b)	$	1.15			1.14		0.99			0.98		1.09			1.09
Diluted EPS:
Net income	$	220,559					193,947					215,213
Less income allocated to nonvested awards		(804	)		804		(959	)		959		(1,644	)		1,644
Net income allocated to common stock for EPS calculation(c)	$	219,755			804		192,988			959		213,569			1,644
Average common shares outstanding		191,239			707		195,378			975		195,623			1,511
Increase due to assumed issuance of shares related to common equivalent shares outstanding		345					193					63
Average common and common equivalent shares outstanding(d)		191,584			707		195,571			975		195,686			1,511
Diluted EPS(c)/(d)	$	1.15			1.14		0.99			0.98		1.09			1.09

The diluted EPS calculation excludes stock options and nonvested awards that are convertible into 3.6 million common shares for the year ended December 31, 2011, and excludes 9.0 million and 7.0 million common shares for the years ended December 31, 2010 and 2009, respectively, because their inclusion would have been anti-dilutive.

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Other Intangible Assets, net - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011 Other intangible assets	Dec. 31, 2010 Other intangible assets	Dec. 31, 2009 Other intangible assets	May 02, 2011 TermNet	Dec. 31, 2010 TSYS Merchant Solutions	Apr. 30, 2010 TSYS Merchant Solutions	Mar. 31, 2010 TSYS Merchant Solutions
Finite-Lived Intangible Assets [Line Items]
Business acquisition, percentage of ownership					49.00%	51.00%
Business acquisition, cash paid				$ 42,000,000			$ 150,450,000
Business acquisition, acquired intangible assets				11,740,000		80,500,000
Amortization expenses recorded in selling, general and administrative expenses	$ 13,200,000	$ 11,200,000	$ 3,400,000

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Property and Equipment, Net of Accumulated Depreciation and Amortization, by Geographic Areas (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Property and equipment, net of accumulated depreciation and amortization	$ 266,608	$ 300,102
United States
Segment Reporting Information [Line Items]
Property and equipment, net of accumulated depreciation and amortization	194,800	203,800
Europe
Segment Reporting Information [Line Items]
Property and equipment, net of accumulated depreciation and amortization	52,400	58,300
Japan
Segment Reporting Information [Line Items]
Property and equipment, net of accumulated depreciation and amortization	9,700	11,300
Other
Segment Reporting Information [Line Items]
Property and equipment, net of accumulated depreciation and amortization	$ 9,700	$ 26,700

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Amounts of TMS' Revenue and Earnings Included in TSYS Consolidated Income Statement (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Business Acquisition [Line Items]
Revenue	$ 1,808,966		$ 1,717,577		$ 1,677,483
Net Income Attributable to TSYS Common Shareholders	220,559		193,947		215,213
Basic EPS Attributable to TSYS Common Shareholders	$ 1.15	[1]	$ 0.99	[1]	$ 1.09	[1]
Diluted EPS Attributable to TSYS Common Shareholders	$ 1.15	[1]	$ 0.99	[1]	$ 1.09	[1]
Revenue			1,745,244
Net Income Attributable to TSYS Common Shareholders			$ 202,242
Basic EPS Attributable to TSYS Common Shareholders			$ 1.03
Diluted EPS Attributable to TSYS Common Shareholders			$ 1.03

[1] Note: Basic and diluted EPS amounts for continuing operations and net income may not total due to rounding.

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Estimated Future Amortization Expense on Payments for Processing Rights and Conversion Costs (Detail) (Contract Acquisition Costs, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Payments for processing rights
Finite-Lived Intangible Assets [Line Items]
2012	$ 14,742
2013	14,355
2014	12,289
2015	8,429
2016	8,608
Conversion Costs
Finite-Lived Intangible Assets [Line Items]
2012	17,825
2013	18,115
2014	15,906
2015	13,838
2016	$ 11,149

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Significant Components of Other Current Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Other Liabilities [Line Items]
Accrued expenses	$ 40,141	$ 29,999
Deferred revenues	29,707	34,184
Dividends payable	18,913	13,634
Accrued income taxes	5,731	2,920
Transaction processing provisions	5,382	5,221
Client postage deposits	3,562	3,708
Other	22,427	21,374
Total	$ 125,863	$ 111,040

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Results of Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total revenues	$ 7,430	$ 181,060
Operating loss	(1,840)	(4,890)
Income taxes	(621)	(1,626)
Loss from discontinued operations, net of tax	(1,243)	(3,219)
Loss on disposition, net of tax	$ (2,002)	$ (3,325)

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Components of Income Tax Before Income Tax (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Components of income before income tax expense :
Domestic	$ 296,475	$ 282,492	$ 300,388
Foreign	20,076	25,320	40,197
Income from continuing operations before income taxes and equity in income of equity investments	$ 316,551	$ 307,812	$ 340,585

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Changes in Carrying Amount of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended					12 Months Ended				12 Months Ended		12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 North America Services	Dec. 31, 2010 North America Services	Dec. 31, 2009 North America Services	Dec. 31, 2011 International Services	Dec. 31, 2010 International Services	Dec. 31, 2011 Merchant services	Dec. 31, 2009 Merchant services	Dec. 31, 2010 TSYS Merchant Solutions	Mar. 31, 2010 TSYS Merchant Solutions	Dec. 31, 2010 TSYS Merchant Solutions Merchant services	Dec. 31, 2011 TermNet	Dec. 31, 2011 TermNet Merchant services
Goodwill [Line Items]
Beginning Balance	$ 320,399	$ 165,896	$ 70,614	$ 70,614	$ 70,614	$ 33,188	$ 34,181	$ 216,597	$ 61,101		$ 155,496
Infonox additional purchase consideration	6,000							6,000
Currency translation adjustments	181	(993)				181	(993)
Ending Balance	355,498	320,399	70,614	70,614	70,614	33,369	33,188	251,515	61,101		155,496
Purchase price allocation										$ 155,496		$ 155,496	$ 28,918	$ 28,918

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Required Annual Principal Payments on Long-term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Long Term Debt Maturities Repayments Of Principal [Line Items]
2012	$ 181,251
2013	13,452
2014	25,652
2015
2016

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Weighted Average Useful Life for Each Component of Other Intangible Assets (Detail) (Other intangible assets)	12 Months Ended
	Dec. 31, 2011 Year
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	8.0
Channel relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	10.0
Trade association
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	10.0
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	7.9
Trade name
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	2.8
Covenants-not-to-compete
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	2.7

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Capital Lease Obligations (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Schedule of Capital Lease Obligations [Line Items]
Capital lease obligations	$ 38,852	$ 43,764
Less current portion	14,363	13,191
Noncurrent portion of capital leases	$ 24,489	$ 30,573

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Equity Investments - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Schedule of Equity Method Investments [Line Items]
Equity in income of equity investments, net of tax	$ 8,708	$ 7,142	$ 6,985
Promocn Y Operacin, SA De CV
Schedule of Equity Method Investments [Line Items]
Equity method investment, percentage of ownership	49.00%
CUP Data
Schedule of Equity Method Investments [Line Items]
Equity method investment, percentage of ownership	44.56%

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Contract Acquisition Costs, net - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Finite-Lived Intangible Assets [Line Items]
Amortization related to payments for processing rights	$ 15,900,000	$ 17,700,000	$ 25,500,000
Amortization expense related to conversion costs	18,800,000	17,500,000	17,800,000
Contract Acquisition Costs | Payments for processing rights
Finite-Lived Intangible Assets [Line Items]
Impairment loss related to conversion cost	750,000
Contract Acquisition Costs | Conversion Costs
Finite-Lived Intangible Assets [Line Items]
Impairment loss related to conversion cost	$ 49,000

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Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2011

Other Comprehensive Income (Loss)

NOTE 18 Other Comprehensive Income (Loss)

In June 1997, the FASB issued authoritative guidance under ASC 220, which established certain standards for reporting and presenting comprehensive income in the general-purpose financial statements. The purpose of ASC 220 was to report all items that met the definition of “comprehensive income” in a prominent financial statement for the same period in which they were recognized. Comprehensive income includes all changes in owners’ equity that resulted from transactions of the business entity with non-owners.

Comprehensive income is the sum of net income and other items that must bypass the income statement because they have not been realized, including items such as an unrealized holding gain or loss from available for sale securities and foreign currency translation gains or losses. These items are not part of net income, yet are important enough to be included in comprehensive income, giving the user a more comprehensive picture of the organization as a whole. Items included in comprehensive income, but not net income, are reported under the accumulated other comprehensive income section of shareholders’ equity.

Comprehensive income (loss) for TSYS consists of net income, cumulative foreign currency translation adjustments and the recognition of an overfunded or underfunded status of a defined benefit postretirement plan recorded as a component of shareholders’ equity. The income tax effects allocated to and the cumulative balance of each component of accumulated other comprehensive income (loss) are as follows:

(in thousands)	Beginning Balance			Pretax amount			Tax effect			Net-of-Tax Amount			Ending Balance
December 31, 2008	$	28,322			(43,121	)		(8,172	)		(34,949	)	$	(6,627	)
Foreign currency translation adjustments	$	(5,858	)		14,140			1,995			12,145		$	6,287
Change in accumulated OCI related to postretirement healthcare plans		(769	)		235			80			155			(614	)
December 31, 2009	$	(6,627	)		14,375			2,075			12,300		$	5,673
Foreign currency translation adjustments	$	6,287			(8,609	)		(1,080	)		(7,529	)	$	(1,242	)
Change in accumulated OCI related to postretirement healthcare plans		(614	)		(1,138	)		(409	)		(729	)		(1,343	)
December 31, 2010	$	5,673			(9,747	)		(1,489	)		(8,258	)	$	(2,585	)
Foreign currency translation adjustments	$	(1,242	)		3,718			2,662			1,056		$	(186	)
Transfer from noncontrolling interest (NCI)		—			28			—			28			28
Change in accumulated OCI related to postretirement healthcare plans		(1,343	)		1,651			595			1,056			(287	)
December 31, 2011	$	(2,585	)		5,397			3,257			2,140		$	(445	)

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.

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Components of Income Tax Expense Included in Consolidated Statements of Income

The components of income tax expense included in the consolidated statements of income were as follows:

	Years Ended December 31,
(in thousands)	2011			2010			2009
Current income tax expense:
Federal	$	83,518			98,802		$	115,301
State		4,666			4,221			4,311
Foreign		12,922			8,682			6,185
Total current income tax expense		101,106			111,705			125,797
Deferred income tax expense (benefit):
Federal		3,126			(2,970	)		(4,210	)
State		61			(643	)		947
Foreign		(1,696	)		(2,004	)		(684	)
Total deferred income tax expense (benefit)		1,491			(5,617	)		(3,947	)
Total income tax expense	$	102,597			106,088		$	121,850

Components of Income Tax Before Income Tax

	Years Ended December 31,
(in thousands)	2011		2010		2009
Components of income before income tax expense :
Domestic	$	296,475		282,492	$	300,388
Foreign		20,076		25,320		40,197
Total income before income tax expense	$	316,551		307,812	$	340,585

Income Tax Expense Differed from Amounts Computed by Applying Statutory U.S. Federal Income Tax Rate to Income before Income Taxes, Noncontrolling Interest and Equity in Income of Equity Investments

Income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate of 35% to income before income taxes, noncontrolling interest and equity in income of equity investments as a result of the following:

	Years Ended December 31,
(in thousands)	2011			2010			2009
Computed “expected” income tax expense	$	110,793			107,734			119,205
Increase (decrease) in income tax expense resulting from:
International tax rate differential		1,831			(4,376	)		1,075
State income tax expense (benefit), net of federal income tax effect		3,164			2,326			3,418
Increase (decrease) in valuation allowance		3,773			2,564			(6,159	)
Tax credits		(9,044	)		(2,824	)		(4,299	)
Federal income tax expense resulting from ASC 740 Election		—			—			9,844
Deduction for domestic production activities		(5,524	)		—			—
Permanent differences and other, net		(2,396	)		664			(1,234	)
Total income tax expense	$	102,597			106,088			121,850

Temporary Differences between Financial Statement Carrying Amounts and Tax Bases of Assets and Liabilities that Give Rise to Significant Portions of Net Deferred Tax Liability

Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability at December 31, 2011 and 2010 relate to the following:

	At December 31,
(in thousands)	2011			2010
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$	25,937			19,884
Allowances for doubtful accounts and billing adjustments		1,113			1,304
Deferred revenue		19,031			16,244
Purchase accounting adjustments		15,889			—
Other, net		37,123			33,980
Total deferred income tax assets		99,093			71,412
Less valuation allowance for deferred income tax assets		(19,207	)		(15,434	)
Net deferred income tax assets		79,886			55,978
Deferred income tax liabilities:
Excess tax over financial statement depreciation		(42,351	)		(35,878	)
Computer software development costs		(40,339	)		(38,797	)
Purchase accounting adjustments		—			(1,438	)
Foreign currency translation		(6,432	)		(3,771	)
Other, net		(6,712	)		(4,847	)
Total deferred income tax liabilities		(95,834	)		(84,731	)
Net deferred income tax liabilities	$	(15,948	)		(28,753	)
Total net deferred tax assets (liabilities):
Current	$	12,872			11,090
Noncurrent		(28,820	)		(39,843	)
Net deferred income tax liability	$	(15,948	)		(28,753	)

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows ⁽¹⁾:

(in millions)	Year Ended December 31, 2011
Beginning balance	$	4.5
Current activity:
Additions based on tax positions related to current year		1.4
Additions for tax positions of prior years		1.4
Reductions for tax positions of prior years		(1.6	)
Settlements		—
Net, current activity		1.2
Ending balance	$	5.7

(1) Unrecognized state tax benefits are not adjusted for the federal tax impact.

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Equity Investments (Tables)

12 Months Ended

Dec. 31, 2011

Summary Of TSYS Equity Investments

A summary of TSYS’ equity investments at December 31 is as follows:

(in thousands)	2011		2010
CUP Data	$	76,110		70,479
TSYS de México		6,814		6,648
Total	$	82,924		77,127

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Gross Amount and Accumulated Impairment Loss of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Goodwill [Line Items]
Gross amount	$ 357,723	$ 322,624
Accumulated impairment losses	(2,225)	(2,225)
Goodwill, net	355,498	320,399	165,896
North America Services
Goodwill [Line Items]
Gross amount	70,614	70,614
Goodwill, net	70,614	70,614	70,614
International Services
Goodwill [Line Items]
Gross amount	33,369	33,188
Goodwill, net	33,369	33,188	34,181
Merchant services
Goodwill [Line Items]
Gross amount	253,740	218,822
Accumulated impairment losses	(2,225)	(2,225)
Goodwill, net	$ 251,515	$ 216,597	$ 61,101

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Summary of Awards Authorized (Detail) (Performance Based Shares)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Number of Shares Awarded	263,292	279,831	182,816
Potential Number of Performance-Based Shares to be Vested	263,292	279,831	73,125
Potential Number of Performance-Based Shares to be Vested period	2014	2013
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential Number of Performance-Based Shares to be Vested period			2012
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential Number of Performance-Based Shares to be Vested period			2014

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Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2011

Cash and Cash Equivalent Balances

Cash and cash equivalent balances at December 31 are summarized as follows:

(in thousands)	2011		2010
Cash and cash equivalents in domestic accounts	$	263,853		347,734
Cash and cash equivalents in foreign accounts		52,484		47,061
Total	$	316,337		394,795

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Segment Reporting, including Geographic Area Data and Major Customers (Tables)

12 Months Ended

Dec. 31, 2011

Operating Segments

The Company believes the terms and conditions of transactions between the segments are comparable to those which could have been obtained in transactions with unaffiliated parties. TSYS’ operating segments share certain resources, such as Information Technology support, that TSYS allocates asymmetrically.

Years ended December 31,
(in thousands)
Operating Segments	2011			2010			2009
Revenues before reimbursable items
North America Services	$	809,069			809,012			880,668
International Services		380,129			321,846			322,697
Merchant Services		373,159			337,178			232,262
Intersegment revenues		(21,659	)		(25,600	)		(28,322	)
Revenues before reimbursable items from external customers	$	1,540,698			1,442,436			1,407,305
Total revenues
North America Services	$	954,550			956,546			1,048,932
International Services		394,831			334,954			337,757
Merchant Services		487,997			458,921			327,055
Intersegment revenues		(28,412	)		(32,844	)		(36,261	)
Revenues from external customers	$	1,808,966			1,717,577			1,677,483
Depreciation and amortization
North America Services	$	78,155			78,834			84,577
International Services		51,888			40,792			34,791
Merchant Services		36,124			40,298			32,590
Corporate Administration		2,998			3,003			3,690
Total depreciation and amortization	$	169,165			162,927			155,648
Segment operating income
North America Services	$	253,844			244,989			285,409
International Services		41,408			42,689			57,654
Merchant Services		112,986			102,444			71,437
Corporate Administration		(85,782	)		(80,693	)		(70,474	)
Operating income	$	322,456			309,429			344,026
At December 31,	2011			2010			2009
Total assets
North America Services	$	1,621,664			1,632,882			1,535,129
International Services		433,203			408,880			379,606
Merchant Services		487,858			460,750			215,855
Intersegment assets		(684,333	)		(550,251	)		(419,636	)
Total assets	$	1,858,392			1,952,261			1,710,954

Property and Equipment, Net of Accumulated Depreciation and Amortization

GEOGRAPHIC AREA DATA:    The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas:

	At December 31,
(in millions)	2011		2010
United States	$	194.8		203.8
Europe		52.4		58.3
Japan		9.7		11.3
Other		9.7		26.7
Totals	$	266.6		300.1

Revenues Based on Domicile of the Company's Customers

The following geographic area data represents revenues for the years ended December 31 based on the domicile of the Company’s customers:

(in millions)	2011		%		2010		%		2009		%
United States	$	1,227.8		67.9	$	1,204.4		70.1	$	1,183.8		70.6
Europe		283.5		15.7		250.2		14.6		269.4		16.1
Canada		171.5		9.5		161.9		9.4		139.7		8.3
Japan		76.3		4.2		61.3		3.6		48.9		2.9
Mexico		7.8		0.4		7.9		0.5		8.1		0.5
Other		42.1		2.3		31.9		1.8		27.6		1.6
Totals	$	1,809.0		100.0	$	1,717.6		100.0	$	1,677.5		100.0

Reconciliation of Geographic Revenues to Revenues by Operating Segments

GEOGRAPHIC AREA REVENUE BY OPERATING SEGMENT:    The following table reconciles segment revenue to revenues by geography for the years ended December 31:

	North America Services						International Services						Merchant Services
(in millions)	2011		2010		2009		2011		2010		2009		2011		2010		2009
United States	$	741.5		748.2		859.5	$	—		—		—	$	486.3		456.2		324.3
Europe		0.7		0.8		0.8		282.8		249.4		268.6		—		—		—
Canada		171.1		161.4		139.2		—		—		—		0.4		0.5		0.5
Japan		—		—		—		76.3		61.3		48.9		—		—		—
Mexico		7.8		7.9		8.1		—		—		—		—		—		—
Other		9.6		9.3		8.7		31.8		21.5		18.1		0.7		1.1		0.8
Totals	$	930.7		927.6		1,016.3	$	390.9		332.2		335.6	$	487.4		457.8		325.6

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Computer Software, net - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011 Acquisition technology intangibles	Dec. 31, 2010 Acquisition technology intangibles	Dec. 31, 2009 Acquisition technology intangibles	Dec. 31, 2011 Licensed computer software	Dec. 31, 2010 Licensed computer software	Dec. 31, 2009 Licensed computer software	Dec. 31, 2011 Software development costs	Dec. 31, 2010 Software development costs	Dec. 31, 2009 Software development costs	Dec. 31, 2010 TSYS Merchant Solutions	Apr. 30, 2010 TSYS Merchant Solutions	Apr. 30, 2010 TSYS Merchant Solutions Acquisition technology intangibles
Finite-Lived Intangible Assets [Line Items]
Business acquisition, percentage of ownership											49.00%	51.00%
Business acquisition, acquired intangible assets												$ 80,500,000	$ 20,300,000
Amortization expenses		10,300,000	9,900,000	6,900,000	37,100,000	33,400,000	31,400,000	24,400,000	23,100,000	20,000,000
Impairment loss in Japan retail gift program	$ 960,000

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Income Tax Expense Differed from Amounts Computed by Applying Statutory U.S. Federal Income Tax Rate to Income before Income Taxes, Noncontrolling Interest and Equity in Income of Equity Investments (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Reconciliation of Provision of Income Taxes [Line Items]
Computed "expected" income tax expense	$ 110,793	$ 107,734	$ 119,205
International tax rate differential	1,831	(4,376)	1,075
State income tax expense (benefit), net of federal income tax effect	3,164	2,326	3,418
Increase (decrease) in valuation allowance	3,773	2,564	(6,159)
Tax credits	(9,044)	(2,824)	(4,299)
Federal income tax expense resulting from ASC 740 Election			9,844
Deduction for domestic production activities	(5,524)
Permanent differences and other, net	(2,396)	664	(1,234)
Total income tax expense	$ 102,597	$ 106,088	$ 121,850

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Cash and Cash Equivalent Balances (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents in domestic accounts	$ 263,853	$ 347,734
Cash and cash equivalents in foreign accounts	52,484	47,061
Total	$ 316,337	$ 394,795	$ 449,955	$ 220,018

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Treasury Stock (Tables)

12 Months Ended

Dec. 31, 2011

Summary of Shares Held as Treasury Stock and Related Carrying Value

The following table summarizes shares held as treasury stock and their related carrying value:

At December 31, (in thousands)	Number  of Treasury Shares		Treasury Shares Cost
2011		12,829	$	225,034
2010		6,798		115,449
2009		3,680		69,950

Purchases of Common Stock on a Monthly Basis

The following table sets forth information regarding the Company’s purchases of its common stock on a monthly basis during the three months ended December 31, 2011:

(in thousands, except per share data)	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Cumulative Shares  Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
October 2011		—	$	—		7,293		7,707
November 2011		—		—		7,293		7,707
December 2011		2,400		19.89		9,693		5,307
Total		2,400	$	19.89

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Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations

NOTE 2 Discontinued Operations

The Company sold certain assets and liabilities of TPOS on September 30, 2010. The sale of certain assets and liabilities of TPOS was the result of management’s decision during the third quarter of 2010 to divest non-strategic businesses and focus resources on core products and services. The Company had a pre-tax goodwill impairment of $2.2 million (approximately $1.5 million after-tax) related to TPOS, which was included in discontinued operations as part of the sale. This transaction resulted in the assumed lease of its Sacramento, California, facility and the closure of its Columbus, Georgia-based distribution center.

TSYS will continue to use the buyer in a referral arrangement for customers who approach TSYS Acquiring Solutions for terminal services, and will also subcontract existing relationships to the buyer for a period no longer than two years. However, TSYS will not have significant continuing involvement after the sale to the buyer.

TPOS was neither a significant component of the Merchant Services segment, nor TSYS’ consolidated results.

The Company sold TDM on August 31, 2009. The sale of the TDM business was the result of management’s decision to divest non-strategic businesses and focus resources on core products and services. TDM was part of the North America Services segment.

In accordance with the provisions of ASC 205, the Company determined the TPOS business became a discontinued operation in the third quarter of 2010 and the TDM business became a discontinued operation in the first quarter of 2009.

The following table presents the summarized results of discontinued operations for the years ended December 31, 2010 and 2009:

(in thousands)	2010			2009
Total revenues	$	7,430			181,060
Operating loss	$	(1,840	)		(4,890	)
Income taxes	$	(621	)		(1,626	)
Loss from discontinued operations, net of tax	$	(1,243	)		(3,219	)
Loss on disposition, net of tax	$	(2,002	)		(3,325	)

The Consolidated Statements of Cash Flows include TPOS and TDM through the respective dates of disposition.

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Stock Purchase Plan Company's Contributions Charged to Expense (Detail) (Stock Repurchase Plan, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Stock Repurchase Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions charged to expense	$ 1,177	$ 1,260	$ 3,764

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Cash and Cash Equivalents - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents, money market accounts	$ 22.0	$ 29.9
Maximum
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents, money market accounts, original maturity date	90 days	90 days

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Collaborative Arrangement - Additional Information (Detail)	Dec. 31, 2011
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of ownership interest in an enterprise jointly owned with two other entities	45.00%

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Long-term Debt and Capital Lease Obligations (Tables)

12 Months Ended

Dec. 31, 2011

Summary of Long-term Debt

Long-term debt at December 31 consists of:

(in thousands)	2011		2010
LIBOR + 0.60%, unsecured term loan, due December 21, 2012, with principal to be paid at maturity	$	168,000		168,000
1.50% note payable, due December 31, 2013, with monthly interest and principal payments		26,703		39,758
LIBOR + 0.80%, unsecured term loan, due November 5, 2014, with principal paid at maturity		25,652		23,937
3.95% note payable, due March 1, 2011, with monthly interest and principal payments		—		1,790
LIBOR + 2.00%, unsecured term loan, due November 16, 2011, with quarterly interest payments and principal to be paid at maturity		—		775
Total debt		220,355		234,260
Less current portion		181,251		39,557
Noncurrent portion of long-term debt	$	39,104		194,703

Required Annual Principal Payments on Long-term Debt

Required annual principal payments on long-term debt for the five years subsequent to December 31, 2011 are summarized as follows:

(in thousands)
2012	$	181,251
2013		13,452
2014		25,652
2015		—
2016		—

Capital Lease Obligations

Capital lease obligations at December 31 consist of:

(in thousands)	2011		2010
Capital lease obligations	$	38,852		43,764
Less current portion		14,363		13,191
Noncurrent portion of capital leases	$	24,489		30,573

Future Minimum Lease Payments under Capital Leases

The future minimum lease payments under capital leases at December 31, 2011 are summarized as follows:

(in thousands)
2012	$	13,861
2013		12,393
2014		11,910
2015		1,607
2016		302
Total minimum lease payments		40,073
Less amount representing interest		1,221
	$	38,852

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Segment Reporting, including Geographic Area Data and Major Customers

12 Months Ended

Dec. 31, 2011

Segment Reporting, including Geographic Area Data and Major Customers

NOTE 22 Segment Reporting, including Geographic Area Data and Major Customers

In June 1997, the FASB issued guidance in accordance with ASC 280, “Segment Reporting.” ASC 280 establishes standards for the way public business enterprises are to report information about operating segments in annual financial statements and requires those enterprises to report selected financial information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosures about products and services, geographic area data and major customers.

TSYS provides global payment processing and other services to card-issuing and merchant acquiring institutions in the United States and internationally through online accounting and electronic payment processing systems. During 2010, TSYS reorganized its operating segments in a manner that reflects the way the chief operating decision maker (CODM) views the business. The change involved accumulating corporate administration expenses, such as finance, legal, human resources, mergers and acquisitions and investor relations, that existed in all operating segments and categorizing them, and spin-related costs, as Corporate Administration.

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet an Atlanta-based merchant acquirer. TermNet’s financial results are included in the Merchant Services segment.

North America Services includes electronic payment processing services and other services provided from within the North America region. International Services includes electronic payment processing and other services provided from outside the North America region. Merchant Services includes electronic processing and other services provided to merchant acquiring institutions.

The Company believes the terms and conditions of transactions between the segments are comparable to those which could have been obtained in transactions with unaffiliated parties. TSYS’ operating segments share certain resources, such as Information Technology support, that TSYS allocates asymmetrically.

Years ended December 31,
(in thousands)
Operating Segments	2011			2010			2009
Revenues before reimbursable items
North America Services	$	809,069			809,012			880,668
International Services		380,129			321,846			322,697
Merchant Services		373,159			337,178			232,262
Intersegment revenues		(21,659	)		(25,600	)		(28,322	)
Revenues before reimbursable items from external customers	$	1,540,698			1,442,436			1,407,305
Total revenues
North America Services	$	954,550			956,546			1,048,932
International Services		394,831			334,954			337,757
Merchant Services		487,997			458,921			327,055
Intersegment revenues		(28,412	)		(32,844	)		(36,261	)
Revenues from external customers	$	1,808,966			1,717,577			1,677,483
Depreciation and amortization
North America Services	$	78,155			78,834			84,577
International Services		51,888			40,792			34,791
Merchant Services		36,124			40,298			32,590
Corporate Administration		2,998			3,003			3,690
Total depreciation and amortization	$	169,165			162,927			155,648
Segment operating income
North America Services	$	253,844			244,989			285,409
International Services		41,408			42,689			57,654
Merchant Services		112,986			102,444			71,437
Corporate Administration		(85,782	)		(80,693	)		(70,474	)
Operating income	$	322,456			309,429			344,026
At December 31,	2011			2010			2009
Total assets
North America Services	$	1,621,664			1,632,882			1,535,129
International Services		433,203			408,880			379,606
Merchant Services		487,858			460,750			215,855
Intersegment assets		(684,333	)		(550,251	)		(419,636	)
Total assets	$	1,858,392			1,952,261			1,710,954

GEOGRAPHIC AREA DATA:    The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas:

	At December 31,
(in millions)	2011		2010
United States	$	194.8		203.8
Europe		52.4		58.3
Japan		9.7		11.3
Other		9.7		26.7
Totals	$	266.6		300.1

The following geographic area data represents revenues for the years ended December 31 based on the domicile of the Company’s customers:

(in millions)	2011		%		2010		%		2009		%
United States	$	1,227.8		67.9	$	1,204.4		70.1	$	1,183.8		70.6
Europe		283.5		15.7		250.2		14.6		269.4		16.1
Canada		171.5		9.5		161.9		9.4		139.7		8.3
Japan		76.3		4.2		61.3		3.6		48.9		2.9
Mexico		7.8		0.4		7.9		0.5		8.1		0.5
Other		42.1		2.3		31.9		1.8		27.6		1.6
Totals	$	1,809.0		100.0	$	1,717.6		100.0	$	1,677.5		100.0

GEOGRAPHIC AREA REVENUE BY OPERATING SEGMENT:    The following table reconciles segment revenue to revenues by geography for the years ended December 31:

	North America Services						International Services						Merchant Services
(in millions)	2011		2010		2009		2011		2010		2009		2011		2010		2009
United States	$	741.5		748.2		859.5	$	—		—		—	$	486.3		456.2		324.3
Europe		0.7		0.8		0.8		282.8		249.4		268.6		—		—		—
Canada		171.1		161.4		139.2		—		—		—		0.4		0.5		0.5
Japan		—		—		—		76.3		61.3		48.9		—		—		—
Mexico		7.8		7.9		8.1		—		—		—		—		—		—
Other		9.6		9.3		8.7		31.8		21.5		18.1		0.7		1.1		0.8
Totals	$	930.7		927.6		1,016.3	$	390.9		332.2		335.6	$	487.4		457.8		325.6

MAJOR CUSTOMER:    For the years ended December 31, 2011, 2010 and 2009, the Company had one major customer which accounted for approximately $210.9 million, or 11.7%, $221.0 million, or 12.9%, and $217.7 million, or 12.0%, respectively, of total revenues. Revenues from the major customer for the years ended December 31, 2011, 2010 and 2009, respectively, are primarily attributable to the North America Services segment and the Merchant Services segment.

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2011

Employee Benefit Plans

NOTE 21 Employee Benefit Plans

The Company provides benefits to its employees by offering employees participation in certain defined contribution plans. The employee benefit plans through which TSYS provided benefits to its employees during 2011 are described as follows:

TSYS RETIREMENT SAVINGS PLAN:    Beginning in 2010, all qualified plans maintained by TSYS were combined into a single plan, the Retirement Savings Plan, which is designed to reward all team members of TSYS U.S.—based companies with a uniform employer contribution. The terms of the plan provide for the Company to match 100% of the employee contribution up to 4% of eligible compensation. The Company can make discretionary contributions up to another 4% based upon business conditions.

MONEY PURCHASE PLAN:    During 2009, the Company’s employees were eligible to participate in the Total System Services, Inc. Money Purchase Pension Plan, a defined contribution pension plan. The terms of the plan provide for the Company to make annual contributions to the plan equal to 7% of participant compensation, as defined.

401(K) PLAN:    During 2009, the Company’s employees were eligible to participate in the TSYS 401(k) Plan. The terms of the plan allow employees to contribute eligible pretax compensation with a discretionary company contribution up to a maximum of 7% of participant compensation, as defined, based upon the Company’s attainment of certain financial goals.

The Company’s contributions to the plans charged to expense for the years ended December 31 are as follows:

(in thousands)	2011		2010		2009
TSYS Retirement Savings Plan	$	15,951		15,430		—
Money Purchase Plan		—		—		19,307
401(k) Plan		—		—		306

STOCK PURCHASE PLAN:    The Company maintains stock purchase plans for employees and directors. Prior to July 2009, the Company made contributions equal to one-half of employee and director voluntary contributions. Beginning in July 2009, the Company changed its contribution to 15% of employee and director voluntary contributions. The funds are used to purchase presently issued and outstanding shares of TSYS common stock on the open market at fair value for the benefit of participants. The Director Stock Purchase Plan was terminated on November 30, 2011. The Company’s contributions to these plans charged to expense for the years ended December 31 are as follows:

(in thousands)
2011	$	1,177
2010		1,260
2009		3,764

POSTRETIREMENT MEDICAL BENEFITS PLAN:    TSYS provides certain medical benefits to qualified retirees through a postretirement medical benefits plan, which is immaterial to the Company’s consolidated financial statements. The measurement of the benefit expense and accrual of benefit costs associated with the plan do not reflect the effects of the 2003 Medicare Act. Additionally, the benefit expense and accrued benefit cost associated with the plan, as well as any potential impact of the effects of the 2003 Medicare Act, are not significant to the Company’s consolidated financial statements.

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Summary of Stock Option Activity and Changes during the Year (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended	12 Months Ended
	Mar. 31, 2010	Dec. 31, 2011 Year	Dec. 31, 2010	Dec. 31, 2009
Options:
Granted		716,508	2,176,963	1,047,949
Exercised		(597,161)	(41,403)	(1,205)
Weighted Average Exercise Price
Granted		$ 17.61	$ 16.01	$ 13.11
Outstanding at end of year		$ 22.04
Weighted average fair value of options granted during the year		$ 5.78	$ 4.11	$ 5.31
Stock Options
Options:
Outstanding at beginning of year		8,810,000	6,955,000	6,185,000
Granted	736,000	717,000	2,177,000	1,048,000
Exercised		(597,000)	(41,000)	(1,000)
Forfeited/canceled		(2,848,000)	(281,000)	(277,000)
Outstanding at end of year		6,082,000	8,810,000	6,955,000
Options exercisable at year-end		3,122,000	5,712,000	5,357,000
Weighted Average Exercise Price
Outstanding at beginning of year		$ 23.40	$ 25.54	$ 27.59
Granted	$ 15.66	$ 17.61	$ 15.89	$ 13.11
Exercised		$ 13.51	$ 13.11	$ 1.83
Forfeited/canceled		$ 29.46	$ 19.83	$ 24.36
Outstanding at end of year		$ 20.61	$ 23.40	$ 25.54
Options exercisable at year-end		$ 25.00	$ 27.48	$ 28.15
Weighted average fair value of options granted during the year	$ 5.33	$ 5.78	$ 4.11	$ 5.31
Average remaining contractual life (in years)		4.9
Aggregate intrinsic value (in thousands)		$ (6,401)
Average remaining contractual life (in years)		4.0
Aggregate intrinsic value (in thousands)		$ (16,967)

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Discontinued Operations - Additional Information (Detail) (TSYS POS Systems and Services LLC, USD $) In Millions, unless otherwise specified	3 Months Ended
	Sep. 30, 2010
TSYS POS Systems and Services LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pre-tax goodwill impairment	$ 2.2
After-tax goodwill impairment	$ 1.5

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Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2011

Significant Components of Other Current Liabilities

Significant components of other current liabilities at December 31 are summarized as follows:

(in thousands)	2011		2010
Accrued expenses	$	40,141		29,999
Deferred revenues		29,707		34,184
Dividends payable		18,913		13,634
Accrued income taxes		5,731		2,920
Transaction processing provisions		5,382		5,221
Client postage deposits		3,562		3,708
Other		22,427		21,374
Total	$	125,863		111,040

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Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2011

Supplemental Cash Flow Information

NOTE 23 Supplemental Cash Flow Information

Nonvested Share Awards

The Company issued shares of TSYS common stock to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued in the form of nonvested stock bonus awards for services to be provided in the future by such officers and employees. Beginning in 2011, the grants to the Board of Directors were fully vested on the date of grant. Refer to Note 16 for more information on nonvested share awards.

Equipment and Software Acquired Under Capital Lease Obligations

The Company acquired computer equipment and software under capital lease in the amount of $8.1 million, $14.9 million and $6.7 million in 2011, 2010 and 2009, respectively.

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Acquisitions

12 Months Ended

Dec. 31, 2011

Acquisitions

NOTE 24 Acquisitions

TermNet Merchant Services, Inc.

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet, an Atlanta-based merchant acquirer, for $42 million in cash. TermNet provides merchant services to qualified merchants serving a diverse merchant base of over 18,000 merchants. The acquisition of TermNet expands the Company’s presence in the merchant acquiring industry. The results of operations for TermNet have been included in the Company’s results beginning May 2, 2011, and are included in the Merchant Services segment. The goodwill of $28.9 million recorded arises largely from synergies and economies of scale expected to be realized from combining the operations of TSYS and TermNet. Goodwill recognized in the acquisition of TermNet is not deductible for income tax purposes.

The following table summarizes the consideration paid for TermNet and the recognized amounts of identifiable assets acquired and liabilities assumed effective May 2, 2011:

(in thousands)
Cash and restricted cash	$	2,691
Accounts receivable, net		10,253
Other assets		1,516
Identifiable intangible assets		11,740
Goodwill		28,918
Accounts payable		(5,578	)
Accrued compensation		(2,683	)
Deferred income tax liability		(4,506	)
Other liabilities		(351	)
Total consideration	$	42,000

The fair value of accounts receivable, accounts payable, accrued compensation, and other liabilities approximates the carrying amount of those assets and liabilities at the acquisition date. The fair value of accounts receivable due under agreements with customers is $10.3 million. The gross amount due under the agreements is $10.4 million, of which approximately $100,000 is expected to be uncollectible. Of the $42 million in consideration paid for TermNet, $8.4 million has been placed in escrow for a period of 18 months to secure certain claims that may be brought against the escrowed consideration by TSYS pursuant to the merger agreement. Consideration is contingent and may be returned to the Company pursuant to indemnification commitments made by, in general, the shareholders of TermNet related to, among other things, a breach of the representations and warrantees made in the merger agreement, possible excess merchant chargebacks, and losses arising out of certain asset dispositions and lease terminations. Such indemnification commitments are recognized as a possible asset receivable and measured at fair value. Based upon the probability of various possible outcomes related to the indemnification commitments, TSYS has determined that the fair value of any receivable asset would be immaterial. The maximum amount of contingent consideration returnable to the Company related to certain indemnification commitments made by TermNet is limited to the consideration held in escrow. The maximum amount of contingent consideration returnable to the Company related to fundamental representations and warranties made by TermNet is unlimited.

Identifiable intangible assets acquired in the TermNet acquisition include customer relationships, channel relationships, and non-compete agreements. The identifiable intangible assets had no significant estimated residual value. These intangible assets are being amortized over their estimated useful lives of 2 to 10 years based on the pattern of expected future economic benefit, which approximates a straight-line basis over the useful lives of the assets. The fair value of the acquired identifiable intangible assets of $11.7 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. The fair values and useful lives of the identified intangible assets were primarily determined using forecasted cash flows, which included estimates for certain assumptions such as revenues, expenses, attrition rates, and royalty rates. The estimated fair value of identifiable intangible assets acquired in the acquisition of TermNet and the related estimated weighted average useful lives are as follows:

	Fair Value (in millions)		Weighted Average Useful Lives
Customer relationships	$	10.0		7.0 years
Channel relationships		1.6		10.0 years
Covenants-not-to-compete		0.1		2.0 years
Total acquired identifiable intangible assets	$	11.7		7.3 years

The fair value measurement of the identifiable intangible assets is based on significant inputs that are not observable in the market and therefore, represents a Level 3 measurement as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate of 14%, (c) a pre-tax royalty rate range of 3-10%, (d) an attrition rate of 20%, (e) an effective tax rate of 36%, and (f) a terminal value based on a long-term sustainable growth rate of 3%.

In connection with the TermNet acquisition, TSYS incurred $192,000 in acquisition-related costs primarily related to professional legal, finance, and accounting costs. These costs were expensed as incurred and are included in selling, general, and administrative expenses in the income statement for 2011.

TSYS Merchant Solutions

On March 1, 2010, TSYS announced the signing of an Investment Agreement with First National Bank of Omaha (FNBO) to form a new joint venture company, First National Merchant Solutions (FNMS). On January 4, 2011, TSYS announced it had acquired the remaining 49 interest in FNMS, effective January 1, 2011, from FNBO. The entity was rebranded as TSYS Merchant Solutions (TMS).

TMS offers transaction processing, merchant support and underwriting, and business and value-added services, as well as Visa- and MasterCard-branded prepaid cards for businesses of any size.

Under the terms of the Investment Agreement, TSYS acquired 51% ownership of FNMS Holding, LLC (“FNMS Holding”), which owned 100% of FNMS, for approximately $150.5 million, while FNBO owned the remaining 49%. The transaction closed on April 1, 2010.

The goodwill amount of $155.5 million arising from the acquisition consists largely of economies of scale expected to be realized from combining the operations of TSYS and TMS. TMS is included within the Merchant Services segment, and as such, all of the goodwill was assigned to that segment. The goodwill recognized is expected to be deductible for income tax purposes.

The following table summarizes the consideration paid for TMS and the amounts of the assets acquired and liabilities assumed recognized on April 1, 2010 (the acquisition date), as well as the fair value at the acquisition date of the noncontrolling interest in TMS. TSYS assumed no liabilities in connection with the acquisition.

(in thousands)
Consideration:
Cash	$	150,450
Equity instruments		—
Contingent consideration arrangement		—
Fair value of total consideration transferred		150,450
Fair value of TSYS’ equity interest in TMS held before the business combination		—
	$	150,450
Acquisition-related costs (included in selling, general, and administrative expenses in TSYS’ income statement for the twelve months ended December 31, 2010)	$	4,130
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash	$	1,919
Property and equipment		1,788
Software		243
Identifiable intangible assets		100,800
Other assets		1,204
Financial liabilities		—
Liability arising from a contingency		—
Total identifiable net assets		105,954
Noncontrolling interest in TMS		(111,000	)
Goodwill		155,496
	$	150,450

The Investment Agreement includes a contingent right of TSYS to receive a return of consideration paid (“contingently returnable consideration”) if certain specified major customer contracts are terminated or modified prior to the first anniversary of the closing, which has since expired. Contingently returnable consideration is recognized as an asset and measured at fair value. Based upon the probability of outcomes, TSYS determined the fair value of the contingently returnable consideration would approximate zero. The maximum amount of contingently returnable consideration is not significant.

The fair value of the acquired identifiable intangible assets of $100.8 million was estimated using the income approach (discounted cash flow and relief from royalty methods) and cost approach. At the time of the acquisition, TSYS had identified certain intangible assets that are expected to generate future earnings for the Company: customer-related intangible assets (such as customer lists), contract-based intangible assets (such as referral agreements), technology, and trademarks. The useful lives of the identified intangible assets were primarily determined by forecasted cash flows, which include estimates for certain assumptions such as revenues, expenses, attrition rates, and royalty rates. The useful lives of these identified assets ranged from 3 to 10 years and are being amortized on a straight-line basis based upon their estimated pattern of economic benefit.

This fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant and internal data, (b) a discount rate range of 4% to 14%, (c) a royalty rate range of 1.5% to 7%, (d) an attrition rate range of 10% to 30%, and (e) an effective tax rate of approximately 36%.

The fair value of the noncontrolling interest in TMS, owned by a private company, was estimated by applying the income and market approaches. In particular, a discounted cash flow method, a guideline companies method, and a recent equity transaction were employed. This fair value measurement is based on significant inputs that are both observable (Level 2) and non-observable (Level 3) in the market as defined in ASC 820. Key assumptions include (a) cash flow projections based on market participant data and developed by Company management, (b) a discount rate range of 12% to 14%, (c) a terminal value based on long-term sustainable growth rates ranging between 3% and 5%, (d) an effective tax rate of approximately 36%, (e) financial multiples of companies deemed to be similar to TMS, and (f) adjustments because of the lack of control or lack of marketability that market participants would consider when estimating the fair value of the noncontrolling interest in TMS.

With the acquisition of TMS on April 1, 2010, TSYS’ incremented revenue compared to the prior year associated with acquisitions was $32.7 million and $97.7 million for the years ended December 31, 2011 and 2010, respectively. For the years ended December 31, 2011 and 2010, TSYS has included approximately $4.2 million and $12.7 million, respectively, in income netted against acquisition related costs associated with TMS.

Other

On October 1, 2011, TSYS acquired contract-based intangible assets in its Merchant Services segment for $2.6 million. These intangible assets are being amortized on a straight-line basis over their estimated useful lives of five years.

In May 2011, TSYS made a payment of $6.0 million of contingent merger consideration in connection with the purchase of Infonox, which was accounted for under SFAS No. 141. The payment of the contingent merger consideration by TSYS was recorded as goodwill and had no impact on our results of operations.

Pro forma Results of Operations

The pro forma revenue and earnings of TermNet are not material to the consolidated financial statements. The amounts of TMS’ revenue and earnings included in TSYS’ consolidated income statement for the years ended December 31, 2011 and 2010, and the pro forma revenue and earnings of the combined entity had the acquisition date been January 1, 2010 are:

(in thousands)	Revenue		Net Income Attributable to TSYS Common Shareholders		Basic EPS Attributable to TSYS Common Shareholders		Diluted EPS Attributable to TSYS Common Shareholders
Actual from 1/1/2011-12/31/2011	$	1,808,966	$	220,559	$	1.15	$	1.15
Actual from 1/1/2010-12/31/2010	$	1,717,577	$	193,947	$	0.99	$	0.99
Supplemental pro forma for 1/1/2010-12/31/2010	$	1,745,244	$	202,242	$	1.03	$	1.03

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Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Basis of Presentation and Summary of Significant Accounting Policies

NOTE 1 Basis of Presentation and Summary of Significant Accounting Policies

BUSINESS:    Total System Services, Inc.’s (TSYS’ or the Company’s) revenues are derived from providing global payment provider services to financial and nonfinancial institutions, generally under long-term processing contracts. The Company’s services are provided through the Company’s three operating segments: North America Services, International Services and Merchant Services.

Through the Company’s North America Services and International Services segments, TSYS processes information through its cardholder systems to financial institutions throughout the United States and internationally. The Company’s North America Services segment provides these services to clients in the United States, Canada, Mexico and the Caribbean. The Company’s International Services segment provides services to clients in Europe, India, Middle East, Africa, Asia Pacific and Brazil. The Company’s Merchant Services segment provides merchant services to merchant acquirers and merchants in the United States.

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet Merchant Services, Inc. (TermNet), an Atlanta-based merchant acquirer.

On March 1, 2010, TSYS announced the signing of an Investment Agreement with First National Bank of Omaha (FNBO) to form a new joint venture company, First National Merchant Solutions, LLC (FNMS), of which TSYS would own 51%. FNMS offers transaction processing, merchant support and underwriting, and value-added services, as well as Visa- and MasterCard-branded prepaid cards for businesses of any size. FNMS is included in the Merchant Services segment. The effective date of the acquisition was April 1, 2010. On January 4, 2011, TSYS announced it had acquired effective January 1, 2011, the remaining 49% interest in FNMS from FNBO. The company has been rebranded as TSYS Merchant Solutions (TMS).

As a result of the sale of certain assets and liabilities of TSYS POS Systems and Services, LLC (TPOS) in 2010 and the sale of TSYS Total Debt Management, Inc. (TDM) in 2009, as discussed in Note 2, the Company’s financial statements reflect TPOS and TDM as discontinued operations. The Company segregated the net assets, net liabilities and operating results from continuing operations in the Consolidated Balance Sheets and Consolidated Statements of Income for all periods presented.

ACQUISITIONS — PURCHASE PRICE ALLOCATION:    TSYS adopted revised generally accepted accounting principles (GAAP) relating to business combinations as of January 1, 2009. The revised guidance retains the purchase method of accounting for acquisitions and requires a number of changes to the previous guidance, including changes in the way assets and liabilities are recognized in purchase accounting. Other changes include requiring the recognition of assets acquired and liabilities assumed arising from contingencies, requiring the capitalization of in-process research and development at fair value, and requiring the expensing of acquisition-related costs as incurred.

TSYS’ purchase price allocation methodology requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities. TSYS estimates the fair value of assets and liabilities based upon appraised market values, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses. Management determines the fair value of fixed assets and identifiable intangible assets such as developed technology or customer relationships, and any other significant assets or liabilities. TSYS adjusts the purchase price allocation, as necessary, up to one year after the acquisition closing date as TSYS obtains more information regarding asset valuations and liabilities assumed. Unanticipated events or circumstances may occur which could affect the accuracy of the Company’s fair value estimates, including assumptions regarding industry economic factors and business strategies, and result in an impairment or a new allocation of purchase price.

Given its history of acquisitions, TSYS may allocate part of the purchase price of future acquisitions to contingent consideration as required by GAAP for business combinations. The fair value calculation of contingent consideration will involve a number of assumptions that are subjective in nature and which may differ significantly from actual results. TSYS may experience volatility in its earnings to some degree in future reporting periods as a result of these fair value measurements.

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION:    The accompanying consolidated financial statements of Total System Services, Inc. include the accounts of TSYS and its majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities as defined in accordance with the provisions of Accounting Standards Codification (ASC) 810, “Consolidation,” and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810.

RISKS AND UNCERTAINTIES AND USE OF ESTIMATES:    Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, lower than anticipated growth from existing clients, an inability to attract new clients and grow internationally, loss of a major customer or other significant client, loss of a major supplier, an inability to grow through acquisitions or successfully integrate acquisitions, an inability to control expenses, technology changes, the impact of the application of and/or changes in accounting principles, financial services consolidation, changes in regulatory requirements, a decline in the use of cards as a payment mechanism, disruption of the Company’s international operations, breach of the Company’s security systems, a decline in the financial stability of the Company’s clients and uncertain economic conditions. Negative developments in these or other risk factors could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

The Company has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates and assumptions are developed based upon all information available. Actual results could differ from estimated amounts.

CASH EQUIVALENTS:    Investments with a maturity of three months or less when purchased are considered to be cash equivalents.

RESTRICTED CASH:    Restricted cash balances relate to cash balances collected on behalf of customers and held in escrow. TSYS records a corresponding liability for the obligation to the customer which is reflected in other current liabilities in the accompanying consolidated balance sheets. In 2010, TSYS began shifting the responsibility for funds management for its clients to the client’s issuer bank. Therefore, client funds are no longer maintained in a TSYS bank account.

ACCOUNTS RECEIVABLE:    Accounts receivable balances are stated net of allowances for doubtful accounts and billing adjustments of $4.1 million and $4.5 million at December 31, 2011 and December 31, 2010, respectively.

TSYS records an allowance for doubtful accounts when it is probable that the accounts receivable balance will not be collected. When estimating the allowance for doubtful accounts, the Company takes into consideration such factors as its day-to-day knowledge of the financial position of specific clients, the industry and size of its clients, the overall composition of its accounts receivable aging, prior history with specific customers of accounts receivable write-offs and prior experience of allowances in proportion to the overall receivable balance. This analysis includes an ongoing and continuous communication with its largest clients and those clients with past due balances. A financial decline of any one of the Company’s large clients could have a material adverse effect on collectability of receivables and thus the adequacy of the allowance for doubtful accounts.

Increases in the allowance for doubtful accounts are recorded as charges to bad debt expense and are reflected in selling, general and administrative expenses in the Company’s consolidated statements of income. Write-offs of uncollectible accounts are charged against the allowance for doubtful accounts.

TSYS records an allowance for billing adjustments for actual and potential billing discrepancies. When estimating the allowance for billing adjustments, the Company considers its overall history of billing adjustments, as well as its history with specific clients and known disputes. Increases in the allowance for billing adjustments are recorded as a reduction of revenues in the Company’s consolidated statements of income and actual adjustments to invoices are charged against the allowance for billing adjustments.

PROPERTY AND EQUIPMENT:    Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over estimated useful lives of 5-40 years, computer and other equipment over estimated useful lives of 2-5 years, and furniture and other equipment over estimated useful lives of 3-15 years. The Company evaluates impairment losses on long-lived assets used in operations in accordance with the provisions of ASC 205, “Presentation of Financial Statements.”

All ordinary repairs and maintenance costs are expensed as incurred. Maintenance costs that extend the asset life are capitalized and amortized over the remaining estimated life of the asset.

LICENSED COMPUTER SOFTWARE:    The Company licenses software that is used in providing services to clients. Licensed software is obtained through perpetual licenses and site licenses and through agreements based on processing capacity (called “MIPS agreements”). Perpetual and site licenses are amortized using the straight-line method over their estimated useful lives which range from three to ten years. Software licensed under MIPS agreements is amortized using a units-of-production basis over the estimated useful life of the software, generally not to exceed ten years. At each balance sheet date, the Company evaluates impairment losses on long-lived assets used in operations in accordance with ASC 205.

ACQUISITION TECHNOLOGY INTANGIBLES:     These identifiable intangible assets are software technology assets resulting from acquisitions. These assets are amortized using the straight-line method over periods not exceeding their estimated useful lives, which range from five to nine years. The provisions of ASC 350, “Intangibles — Goodwill and Other,” require that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment in accordance with ASC 205. Acquisition technology intangibles net book values are included in computer software, net in the accompanying balance sheets. Amortization expenses are charged to cost of services in the Company’s consolidated statements of income.

SOFTWARE DEVELOPMENT COSTS:    In accordance with the provisions of ASC 985, “Software,” software development costs are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. At each balance sheet date, the Company evaluates the unamortized capitalized costs of software development as compared to the net realizable value of the software product which is determined by future undiscounted net cash flows. The amount by which the unamortized software development costs exceed the net realizable value is written off in the period that such determination is made. Software development costs are amortized using the greater of (1) the straight-line method over its estimated useful life, which ranges from three to ten years or (2) the ratio of current revenues to total anticipated revenue over its useful life.

The Company also develops software that is used internally. These software development costs are capitalized based upon the provisions of ASC 350. Internal-use software development costs are capitalized once: (1) the preliminary project stage is completed, (2) management authorizes and commits to funding a computer software project, and (3) it is probable that the project will be completed and the software will be used to perform the function intended. Costs incurred prior to meeting the qualifications are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. Internal-use software development costs are amortized using an estimated useful life of three to five years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of the planned project becoming doubtful or due to technological obsolescence of the planned software product.

CONTRACT ACQUISITION COSTS:    The Company capitalizes contract acquisition costs related to signing or renewing long-term contracts. The Company capitalizes internal conversion costs in accordance with the provisions of Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition” and ASC 605, “Revenue Recognition.” The capitalization of costs related to cash payments for rights to provide processing services is capitalized in accordance with the provisions of ASC 605. All costs incurred prior to a signed agreement are expensed as incurred.

Contract acquisition costs are amortized using the straight-line method over the expected customer relationship (contract term) beginning when the client’s cardholder accounts are converted and producing revenues. The amortization of contract acquisition costs associated with cash payments for client incentives is included as a reduction of revenues in the Company’s consolidated statements of income. The amortization of contract acquisition costs associated with conversion activity is recorded as cost of services in the Company’s consolidated statements of income.

The Company evaluates the carrying value of contract acquisition costs associated with each customer for impairment on the basis of whether these costs are fully recoverable from either contractual minimum fees (contractual costs) or from expected undiscounted net operating cash flows of the related contract (cash incentives paid). The determination of expected undiscounted net operating cash flows requires management to make estimates. These costs may become impaired with the loss of a contract, the financial decline of a client, termination of conversion efforts after a contract is signed, diminished prospects for current clients or if the Company’s actual results differ from its estimates of future cash flows. The amount of the impairment is written off in the period that such a determination is made.

EQUITY INVESTMENTS:    TSYS’ 49% investment in Total System Services de México, S.A. de C.V. (TSYS de México), an electronic payment processing support operation located in Toluca, Mexico, is accounted for using the equity method of accounting, as is TSYS’ 44.56% investment in China UnionPay Data Co., Ltd. (CUP Data) headquartered in Shanghai, China. TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments.

GOODWILL:    Goodwill results from the excess of cost over the fair value of net assets of businesses acquired.

Goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually in accordance with the provisions of ASC 350. ASC 350 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 205.

The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with the provisions of ASC 323, “Investments — Equity Method and Joint Ventures,” shall not be amortized. However, equity method goodwill shall not be reviewed for impairment in accordance with ASC 350, but instead should continue to be reviewed for impairment in accordance with paragraph 19(h) of ASC 323. Equity method goodwill, which is not reported as goodwill in the Company’s consolidated balance sheet, but is reported as a component of the equity investment, was $50.6 million at December 31, 2011.

At December 31, 2011, the Company had goodwill in the amount of $355.5 million. The Company performed its annual impairment analyses of its goodwill balance, and these tests did not indicate any impairment for the periods ended December 31, 2011, 2010 and 2009, respectively.

OTHER INTANGIBLE ASSETS:    Identifiable intangible assets relate primarily to customer relationships, covenants-not-to-compete, trade names and trade associations resulting from acquisitions. These identifiable intangible assets are amortized using the straight-line method over periods not exceeding the estimated useful lives, which range from three to ten years. ASC 350 requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 205. Amortization expenses are charged to selling, general and administrative expenses in the Company’s consolidated statements of income.

FAIR VALUES OF FINANCIAL INSTRUMENTS:     The Company uses financial instruments in the normal course of its business. The carrying values of cash equivalents, accounts receivable, accounts payable, accrued salaries and employee benefits, and other current liabilities approximate their fair value due to the short-term maturities of these assets and liabilities. The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value.

Investments in equity investments are accounted for using the equity method of accounting and pertain to privately held companies for which fair value is not readily available. The Company believes the fair values of its investments in equity investments exceed their respective carrying values.

IMPAIRMENT OF LONG-LIVED ASSETS:    In accordance with ASC 205, the Company reviews long-lived assets, such as property and equipment and intangibles subject to amortization, including contract acquisition costs and certain computer software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If upon a triggering event the Company determines that the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.

TRANSACTION PROCESSING PROVISIONS:    The Company has recorded an accrual for contract contingencies (performance penalties) and processing errors. A significant number of the Company’s contracts with large clients contain service level agreements which can result in TSYS incurring performance penalties if contractually required service levels are not met. When providing for these accruals, the Company takes into consideration such factors as the prior history of performance penalties and processing errors incurred, actual contractual penalties inherent in the Company’s contracts, progress towards milestones and known processing errors not covered by insurance.

These accruals are included in other current liabilities in the accompanying consolidated balance sheets. Increases and decreases in transaction processing provisions are charged to cost of services in the Company’s consolidated statements of income, and payments or credits for performance penalties and processing errors are charged against the accrual.

REDEEMABLE NONCONTROLLING INTEREST:     In connection with the 2010 acquisition of TMS, the Company was a party to call and put arrangements with respect to the membership units that represented the remaining noncontrolling interest of FNMS Holding. The call arrangement was exercisable by TSYS and the put arrangement was exercisable by FNBO. The put arrangement was outside the control of the Company by requiring the Company to purchase FNBO’s entire equity interest in FNMS Holding at a put price at fair market value. The put arrangement was recorded on the balance sheet and was classified as redeemable noncontrolling interest outside of permanent equity.

The call and put arrangements for FNMS Holding, representing 49% of its total outstanding equity interests, could have been exercised at the discretion of TSYS or FNBO on April 1, 2015, 2016 and 2017, upon the dilution of FNBO’s equity ownership in FNMS Holding below a designated threshold and in connection with certain acquisitions by TSYS or FNMS Holding in excess of designated value thresholds.

The Company bought the remaining 49% interest for $174.1 million, and paid net cash of $169.6 million ($174.1 million less $4.5 million for a trade name sold). With the purchase, the Company eliminated the redeemable noncontrolling interest of $144.6 million and adjusted the remaining balance through additional paid-in capital and deferred taxes.

NONCONTROLLING INTEREST:    In December 2007, the Financial Accounting Standards Board (FASB) issued authoritative guidance under ASC 810, “Consolidation.” ASC 810 changes the accounting for noncontrolling (minority) interests in consolidated financial statements, including the requirements to classify noncontrolling interests as a component of consolidated shareholders’ equity, the elimination of “minority interest” accounting in results of operations and changes in the accounting for both increases and decreases in a parent’s controlling ownership interest.

Noncontrolling interest in earnings of subsidiaries represents the minority shareholders’ share of the net income or loss of GP Network Corporation (GP Net) and TSYS Managed Services EMEA Ltd. (TSYS Managed Services). The noncontrolling interest in the consolidated balance sheet reflects the original investment by these shareholders in GP Net and TSYS Managed Services, their proportional share of the earnings or losses and their proportional share of net gains or losses resulting from the currency translation of assets and liabilities of GP Net and TSYS Managed Services. TSYS has adopted the accounting policy to recognize gains or losses on equity transactions of a subsidiary as a capital transaction.

RESERVE FOR MERCHANT LOSSES:    The Company has potential liability for losses resulting from disputes between a cardholder and a merchant that arise as a result of, among other things, the cardholder’s dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. If the merchant is unable to fund the refund, TSYS must do so. TSYS also bears the risk of reject losses arising from the fact that TSYS collects fees from its merchants on the first day after the monthly billing period. If the merchant has gone out of business during such period, TSYS may be unable to collect such fees. TSYS maintains cash deposits or requires the pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. Most chargeback and reject losses are charged to cost of services as they are incurred. However, the Company also maintains a reserve against losses, including major fraud losses, which are both less predictable and involve larger amounts. The loss reserve was established using historical loss rates, applied to recent bankcard processing volume. At December 31, 2011, the Company had a merchant loss reserve in the amount of $397,000.

FOREIGN CURRENCY TRANSLATION:    The Company maintains several different foreign operations whose functional currency is their local currency. Foreign currency financial statements of the Company’s Mexican and Chinese equity investments, the Company’s wholly owned subsidiaries and the Company’s majority owned subsidiaries, as well as the Company’s division and branches in the United Kingdom and China, are translated into U.S. dollars at current exchange rates, except for revenues, costs and expenses, and net income which are translated at the average exchange rates for each reporting period. Net gains or losses resulting from the currency translation of assets and liabilities of the Company’s foreign operations, net of tax when applicable, are accumulated in a separate section of shareholders’ equity titled accumulated other comprehensive income (loss). Gains and losses on transactions denominated in currencies other than the functional currencies are included in determining net income for the period in which exchange rates change.

COMPREHENSIVE INCOME:    The provisions of ASC 220, “Comprehensive Income,” require companies to display, with the same prominence as other financial statements, the components of comprehensive income (loss). TSYS displays the items of other comprehensive income (loss) in its consolidated statements of equity and comprehensive income.

TREASURY STOCK:    The Company uses the cost method when it purchases its own common stock as treasury shares or issues treasury stock upon option exercises and displays treasury stock as a reduction of shareholders’ equity.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES:    ASC 815, “Derivatives and Hedging” requires that all derivative instruments be recorded on the balance sheet at their respective fair values. The Company did not have any outstanding derivative instruments or hedging transactions at December 31, 2011.

REVENUE RECOGNITION:    The Company’s North America and International Services revenues are derived from long-term processing contracts with financial and nonfinancial institutions and are generally recognized as the services are performed. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements mailed, cards embossed and mailed and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual revenue minimums. Processing contracts generally range from three to ten years in length and provide for penalties for early termination.

The Company’s merchant services revenues are derived from long-term processing contracts with large financial institutions and other merchant acquirers which generally range from three to eight years and provide for penalties for early termination. Merchant services revenues are generated primarily from processing all payment forms including credit, debit, electronic benefits transfer and check truncation for merchants of all sizes across a wide array of retail market segments. The products and services offered include authorization and capture of electronic transactions, clearing and settlement of electronic transactions, information reporting services related to electronic transactions, merchant billing services, and point-of-sale terminal sales and services. Revenue is recognized for merchant services as those services are performed, primarily on a per unit basis. Revenues on point-of-sale terminal equipment are recognized upon the transfer of ownership and shipment of product.

The Company recognizes revenues in accordance with the provisions of SAB No. 104. SAB No. 104 sets forth guidance as to when revenue is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured.

The Company evaluates its contractual arrangements that provide services to clients through a bundled sales arrangement in accordance with the provisions of ASC 605. ASC 605 addresses the determination of whether an arrangement involving more than one deliverable contains more than one unit of accounting and how the arrangement consideration should be measured and allocated to the separate units of accounting.

A deliverable in multiple element arrangements indicates any performance obligation on the part of the seller and includes any combination of obligations to perform different services, grant licenses or other rights. Revenue is allocated to the separate units of accounting in a multiple element arrangement based on relative fair values, provided the delivered element has standalone value to the customer and delivery of any undelivered items is probable and substantially within the Company’s control. Evidence of fair value must be objective and reliable. An item has value to the customer on a standalone basis if it is sold separately by any vendor or the customer could resell the deliverable on a standalone basis.

In regards to taxes assessed by a governmental authority imposed directly on a revenue producing transaction, the Company reports its revenues on a net basis.

REIMBURSABLE ITEMS:    Reimbursable items consist of out-of-pocket expenses which are reimbursed by the Company’s clients. These expenses consist primarily of postage, access fees and third party software. The Company accounts for reimbursable items in accordance with the provisions of ASC 605.

SHARE-BASED COMPENSATION:    In December 2004, the FASB issued authoritative guidance under ASC 718, “Compensation — Stock Compensation.” ASC 718 establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. This Statement requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award.

ASC 718 is effective for all awards granted on or after January 1, 2006, and to awards modified, repurchased or cancelled after that date. ASC 718 requires the Company to recognize compensation costs for the nonvested portion of outstanding share-based compensation granted in the form of stock options based on the grant-date fair value of those awards calculated under the provisions of ASC 718, for pro forma disclosures. Share-based compensation expenses include the impact of expensing the fair value of stock options, as well as expenses associated with nonvested shares. TSYS adopted the provisions of ASC 718 effective January 1, 2006 using the modified-prospective-transition method.

ASC 718 requires companies to estimate forfeitures when recognizing compensation cost. The estimate of forfeitures will be adjusted by the Company as actual forfeitures differ from its estimates, resulting in compensation cost only for those awards that actually vest. The effect of the change in estimated forfeitures is recognized as compensation costs in the period the change in estimate occurred. In estimating its forfeiture rate, the Company stratified its data based upon historical experience to determine separate forfeiture rates for the different award grants. The Company currently estimates a forfeiture rate for existing stock option grants to TSYS non-executive employees, and a forfeiture rate for other TSYS share-based awards. Currently, TSYS estimates a forfeiture rate in the range of 0% to 10.0%.

The Company has issued its common stock to directors and to certain employees under nonvested awards. The market value of the common stock at the date of issuance is recognized as compensation expense over the vesting period of the awards. For nonvested award grants that have pro rata vesting, the Company recognizes compensation expense using the straight-line method over the vesting period of the award.

LEASES:    The Company is obligated under noncancelable leases for computer equipment and facilities. As these leases expire, they will be evaluated and renewed or replaced by similar leases based on need. A lease is an agreement conveying the right to use property, plant, or equipment (land and/or depreciable assets) usually for a stated period of time. For purposes of applying the accounting and reporting standards, leases are classified from the standpoint of the lessee as capital or operating leases. The provisions of ASC 840, “Leases,” establish standards of financial accounting and reporting for leases by lessees and lessors. If at inception a lease meets one or more of the following four criteria, the lease shall be classified as a capital lease by the lessee: (a) the lease transfers ownership of the property to the lessee by the end of the lease term; (b) the lease contains a bargain purchase option; (c) the lease term is equal to 75% or more of the estimated economic life of the leased property; and (d) the present value at the beginning of the lease term of the minimum lease payments equals or exceeds 90% of the fair value of the leased property. If the lease does not meet one or more of the criteria, it shall be classified as an operating lease.

Rental payments on operating leases are charged to expense over the lease term. If rental payments are not made on a straight-line basis, rental expense nevertheless shall be recognized on a straight-line basis unless another systematic and rational basis is more representative of the time pattern in which use benefit is derived from the leased property, in which case that basis shall be used.

Certain of the Company’s operating leases are for office space. The Company will make various alterations (leasehold improvements) to the office space and capitalize these costs as part of property and equipment. Leasehold improvements are amortized on a straight-line basis over the useful life of the improvement or the term of the lease, whichever is shorter.

ADVERTISING:    Advertising costs, consisting mainly of advertising in trade publications, are expensed as incurred or the first time the advertising takes place. Advertising expense for 2011, 2010 and 2009 was $813,000, $690,000 and $327,000, respectively.

INCOME TAXES:    Income taxes reflected in TSYS’ consolidated financial statements are computed based on the taxable income of TSYS and its affiliated subsidiaries. A consolidated U.S. federal income tax return is filed for TSYS and its majority owned U.S. subsidiaries through the year ended December 31, 2011. Income tax returns are also filed in foreign jurisdictions where TSYS has a foreign affiliate.

The Company accounts for income taxes in accordance with the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Reserves against the carrying value of a deferred tax asset are established when necessary to reflect the decreased likelihood of realization of a deferred asset in the future. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Income tax provisions require the use of management judgments, which are subject to challenge by various taxing authorities. Contingency reserves are periodically established where the amount of the contingency can be reasonably determined and is likely to occur. Reductions in contingency reserves are recognized when tax disputes are settled or examination periods lapse.

Significant estimates used in accounting for income taxes relate to the determination of taxable income, the determination of temporary differences between book and tax bases, as well as estimates on the realizability of tax credits and net operating losses.

TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the consolidated statements of income.

TSYS adopted the authoritative guidance under ASC 740, “Income Taxes,” on January 1, 2007. This interpretation prescribed a recognition threshold and measurement attribute for the financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken in a tax return.

EARNINGS PER SHARE:    In June 2008, the FASB issued authoritative guidance under ASC 260, “Earnings Per Share.” The guidance under ASC 260 holds that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are “participating securities” as defined in ASC 260, and therefore should be included in computing earnings per share (EPS) using the two-class method.

The two-class method is an earnings allocation method for computing EPS when an entity’s capital structure includes two or more classes of common stock or common stock and participating securities. It determines EPS based on dividends declared on common stock and participating securities and participation rights of participating securities in any undistributed earnings. The guidance under ASC 260 was effective for reporting periods beginning after December 15, 2008.

Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised. Diluted EPS is calculated by dividing net income by weighted average common and common equivalent shares outstanding. Common equivalent shares are calculated using the treasury stock method.

RECLASSIFICATIONS:    Certain reclassifications have been made to the 2010 and 2009 financial statements to conform to the presentation adopted in 2011.

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Collaborative Arrangement

12 Months Ended

Dec. 31, 2011

Collaborative Arrangement

NOTE 25 Collaborative Arrangement

In January 2009, TSYS adopted the authoritative guidance under ASC 808, “Collaborative Arrangements.” The guidance under ASC 808 is effective for reporting periods beginning after December 15, 2008, and it requires restatement of prior periods for all collaborative arrangements existing as of the effective date.

TSYS has a 45% ownership interest in an enterprise jointly owned with two other entities which operates aircraft for the owners’ internal use. The arrangement allows each entity access to the aircraft and each entity pays for its usage of the aircraft. Each quarter, the net operating results of the enterprise are shared among the owners based on their respective ownership percentage.

TSYS records its usage of the aircraft and its share of net operating results of the enterprise in selling, general and administrative expenses.

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Long-term Debt and Capital Lease Obligations - Additional Information (Detail)	1 Months Ended			1 Months Ended			12 Months Ended							1 Months Ended									12 Months Ended
	Dec. 31, 2010 USD ($)	Dec. 21, 2007	Dec. 31, 2011 USD ($)	Nov. 30, 2011 TSYS Managed Services USD ($)	Nov. 30, 2011 TSYS Managed Services GBP (£)	Dec. 21, 2007 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent USD ($)	Dec. 31, 2011 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent USD ($)	Dec. 31, 2010 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent USD ($)	Dec. 31, 2011 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent LIBOR	Dec. 31, 2010 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent LIBOR	Dec. 21, 2007 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent LIBOR	Dec. 21, 2007 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent LIBOR Minimum	Dec. 21, 2007 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent LIBOR Maximum	Dec. 21, 2007 Unsecured Revolving Credit Facility USD ($)	Dec. 21, 2007 Unsecured Revolving Credit Facility Minimum	Dec. 21, 2007 Unsecured Revolving Credit Facility Maximum	Apr. 30, 2009 International Services USD ($)	Apr. 30, 2009 International Services JPY (¥)	Jan. 31, 2009 International Services USD ($)	Jan. 31, 2009 International Services JPY (¥)	Oct. 30, 2008 International Services USD ($)	Oct. 30, 2008 International Services JPY (¥)	Dec. 31, 2011 International Services	Oct. 30, 2008 International Services LIBOR
Debt Instrument [Line Items]
Note payable obtained from third party vendor	$ 39,800,000
Credit agreement, maximum borrow capacity			5,000,000																		21,000,000	2,000,000,000
Long-term debt	234,260,000		220,355,000			168,000,000	168,000,000	168,000,000						252,000,000
Debt instrument maturity period						5 years								5 years							3 years	3 years
Debt instrument, margin rate									0.60%	0.60%	0.60%	0.27%	0.725%											0.80%
Debt instrument, investment grade rating from Standard and Poors		BBB
Debt instrument, frequency of interest payments						3 months
Commitment fee as a percentage of revolving credit facility														0.10%	0.08%	0.15%
Amount draw under credit agreement																	2,500,000	250,000,000	2,800,000	250,000,000	15,100,000	1,500,000,000
Debt instrument maturity date		Dec. 21, 2012					Dec. 21, 2012	Dec. 21, 2012															Nov. 05, 2014
Repayment of loan				$ 788,000	£ 504,000

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Employee Benefit Plans - Additional Information (Detail)	12 Months Ended			6 Months Ended	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2010 TSYS Retirement Savings Plan	Dec. 31, 2009 Money Purchase Pan	Dec. 31, 2009 Stock Repurchase Plan	Dec. 31, 2011 Stock Repurchase Plan	Dec. 31, 2010 Maximum TSYS Retirement Savings Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contribution, percentage of eligible compensation		100.00%
Employee contribution, percentage of eligible compensation						4.00%
Percentage of employer discretionary contributions						4.00%
Percentage of employer contribution			7.00%	50.00%	15.00%
Employee's contribution, pretax compensation with a discretionary company contribution	7.00%

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Other Intangible Assets, net (Tables)

12 Months Ended

Dec. 31, 2011

Computer Software, Intangible Asset

Components of Intangible Assets

Computer software at December 31 is summarized as follows:

(in thousands)	2011		2010
Licensed computer software	$	423,100		403,115
Software development costs		283,452		265,029
Acquisition technology intangibles		76,055		75,891
Total computer software		782,607		744,035
Less accumulated amortization:
Licensed computer software		309,571		275,145
Software development costs		208,781		183,853
Acquisition technology intangibles		49,011		38,613
Total accumulated amortization		567,363		497,611
Computer software, net	$	215,244		246,424

Weighted Average Useful Life

The weighted average useful life for each component of computer software, and in total, at December 31, 2011, is as follows:

	Weighted Average Amortization Period (Yrs)
Licensed computer software		5.6
Software development costs		6.0
Acquisition technology intangibles		6.9
Total		5.9

Estimated Future Amortization Expense

Estimated future amortization expense of licensed computer software, software development costs and acquisition technology intangibles as of December 31, 2011 for the next five years is:

(in thousands)	Licensed Computer Software		Software Development Costs		Acquisition Technology Intangibles
2012	$	38,573		38,456		9,319
2013		30,891		14,968		7,665
2014		22,125		11,135		5,873
2015		15,287		7,302		2,828
2016		6,349		1,892		1,359

Contract Acquisition Costs

Components of Intangible Assets

Significant components of contract acquisition costs at December 31 are summarized as follows:

(in thousands)	2011		2010
Conversion costs, net	$	88,765		80,521
Payments for processing rights, net		74,222		85,730
Total	$	162,987		166,251

Weighted Average Useful Life

The weighted average useful life for each component of contract acquisition costs, and in total, at December 31, 2011 is as follows:

	Weighted Average Amortization Period (Yrs)
Payments for processing rights		9.6
Conversion costs		7.4
Total		8.6

Estimated Future Amortization Expense

Estimated future amortization expense on payments for processing rights and conversion costs as of December 31, 2011 for the next five years is:

(in thousands)	Payments for Processing Rights		Conversion Costs
2012	$	14,742		17,825
2013		14,355		18,115
2014		12,289		15,906
2015		8,429		13,838
2016		8,608		11,149

Other intangible assets

Components of Intangible Assets

Significant components of other intangible assets at December 31 are summarized as follows:

	2011
(in thousands)	Gross		Accumulated Amortization			Net
Customer relationships	$	106,312		(34,899	)	$	71,413
Trade association		10,000		(1,750	)		8,250
Trade name		2,024		(2,024	)		—
Channel relationships		1,600		(107	)		1,493
Covenants-not-to-compete		1,140		(1,046	)		94
Total	$	121,076		(39,826	)	$	81,250

	2010
(in thousands)	Gross		Accumulated Amortization			Net
Customer relationships	$	93,727		(22,859	)	$	70,868
Trade association		10,000		(750	)		9,250
Trade name		6,031		(3,031	)		3,000
Covenants-not-to-compete		1,000		(1,000	)		—
Total	$	110,758		(27,640	)	$	83,118

Weighted Average Useful Life

The weighted average useful life for each component of other intangible assets, and in total, at December 31, 2011 is as follows:

	Weighted Average Amortization Period (Yrs)
Channel relationships		10.0
Trade association		10.0
Customer relationships		7.9
Trade name		2.8
Covenant-not-to-compete		2.7
Total		8.0

Estimated Future Amortization Expense

Estimated future amortization expense on other intangible assets as of December 31, 2011 for the next five years is:

(in thousands)
2012	$	14,145
2013		12,848
2014		12,575
2015		11,896
2016		11,766

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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2011

Estimated Fair Value of Identifiable Intangible Assets Acquired

The estimated fair value of identifiable intangible assets acquired in the acquisition of TermNet and the related estimated weighted average useful lives are as follows:

	Fair Value (in millions)		Weighted Average Useful Lives
Customer relationships	$	10.0		7.0 years
Channel relationships		1.6		10.0 years
Covenants-not-to-compete		0.1		2.0 years
Total acquired identifiable intangible assets	$	11.7		7.3 years

The Amounts of The Assets Acquired and Liabilities Assumed Recognized

The following table summarizes the consideration paid for TMS and the amounts of the assets acquired and liabilities assumed recognized on April 1, 2010 (the acquisition date), as well as the fair value at the acquisition date of the noncontrolling interest in TMS. TSYS assumed no liabilities in connection with the acquisition.

(in thousands)
Consideration:
Cash	$	150,450
Equity instruments		—
Contingent consideration arrangement		—
Fair value of total consideration transferred		150,450
Fair value of TSYS’ equity interest in TMS held before the business combination		—
	$	150,450
Acquisition-related costs (included in selling, general, and administrative expenses in TSYS’ income statement for the twelve months ended December 31, 2010)	$	4,130
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash	$	1,919
Property and equipment		1,788
Software		243
Identifiable intangible assets		100,800
Other assets		1,204
Financial liabilities		—
Liability arising from a contingency		—
Total identifiable net assets		105,954
Noncontrolling interest in TMS		(111,000	)
Goodwill		155,496
	$	150,450

Amounts of TMS' Revenue and Earnings Included in TSYS Consolidated Income Statement

The amounts of TMS’ revenue and earnings included in TSYS’ consolidated income statement for the years ended December 31, 2011 and 2010, and the pro forma revenue and earnings of the combined entity had the acquisition date been January 1, 2010 are:

(in thousands)	Revenue		Net Income Attributable to TSYS Common Shareholders		Basic EPS Attributable to TSYS Common Shareholders		Diluted EPS Attributable to TSYS Common Shareholders
Actual from 1/1/2011-12/31/2011	$	1,808,966	$	220,559	$	1.15	$	1.15
Actual from 1/1/2010-12/31/2010	$	1,717,577	$	193,947	$	0.99	$	0.99
Supplemental pro forma for 1/1/2010-12/31/2010	$	1,745,244	$	202,242	$	1.03	$	1.03

TermNet

Summary of Consideration Paid and Recognized Amounts of Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid for TermNet and the recognized amounts of identifiable assets acquired and liabilities assumed effective May 2, 2011:

(in thousands)
Cash and restricted cash	$	2,691
Accounts receivable, net		10,253
Other assets		1,516
Identifiable intangible assets		11,740
Goodwill		28,918
Accounts payable		(5,578	)
Accrued compensation		(2,683	)
Deferred income tax liability		(4,506	)
Other liabilities		(351	)
Total consideration	$	42,000

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Weighted Average Useful Life for Each Component of Contract Acquisition Costs (Detail) (Contract Acquisition Costs)	12 Months Ended
	Dec. 31, 2011 Year
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	8.6
Payments for processing rights
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	9.6
Conversion Costs
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	7.4

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents (Note 5)	$ 316,337	$ 394,795
Restricted cash		434
Accounts receivable, net of allowance for doubtful accounts and billing adjustments of $4.1 million and $4.5 million at 2011 and 2010, respectively	248,541	237,646
Deferred income tax assets (Note 20)	12,872	11,090
Prepaid expenses and other current assets (Note 6)	72,431	77,848
Total current assets	650,181	721,813
Property and equipment, net of accumulated depreciation and amortization (Notes 7 and 22)	266,608	300,102
Computer software, net of accumulated amortization (Note 8)	215,244	246,424
Contract acquisition costs, net of accumulated amortization (Note 9)	162,987	166,251
Goodwill (Note 10)	355,498	320,399
Equity investments (Note 11)	82,924	77,127
Other intangible assets, net of accumulated amortization (Note 12)	81,250	83,118
Deferred income tax assets, net	4,069	2,704
Other assets	39,631	34,323
Total assets	1,858,392	1,952,261
Current liabilities:
Accrued salaries and employee benefits	33,004	27,414
Accounts payable (Note 4)	26,095	36,068
Current portion of long-term debt (Note 13)	181,251	39,557
Current portion of obligations under capital leases (Note 13)	14,363	13,191
Other current liabilities (Note 14)	125,863	111,040
Total current liabilities	380,576	227,270
Long-term debt, excluding current portion (Note 13)	39,104	194,703
Deferred income tax liabilities (Note 20)	32,889	42,547
Obligations under capital leases, excluding current portion (Note 13)	24,489	30,573
Other long-term liabilities	60,325	53,363
Total liabilities	537,383	548,456
Redeemable noncontrolling interest		146,000
Shareholders' equity (Notes 15, 16, 17 and 18):
Common stock - $0.10 par value. Authorized 600,000 shares; 201,860 and 201,326 issued at 2011 and 2010, respectively; 189,031 and 194,528 outstanding at 2011 and 2010, respectively	20,186	20,133
Additional paid-in capital	125,948	119,722
Accumulated other comprehensive loss, net	(445)	(2,585)
Treasury stock (shares of 12,829 and 6,798 at 2011 and 2010, respectively)	(225,034)	(115,449)
Retained earnings	1,380,634	1,219,303
Total shareholders' equity	1,301,289	1,241,124
Noncontrolling interests in consolidated subsidiaries	19,720	16,681
Total equity	1,321,009	1,257,805
Commitments and contingencies (Note 19)
Total liabilities and equity	$ 1,858,392	$ 1,952,261

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Equity (Tables)

12 Months Ended

Dec. 31, 2011

Summary of Equity Compensation Plans

The following table summarizes TSYS’ equity compensation plans by category; as of December 31, 2011:

(in thousands, except per share data) Plan Category	(a) Number of securities to  be issued upon exercise of outstanding options, warrants and rights			(b) Weighted-average exercise price of outstanding options, warrants and rights		(c) Number of securities  remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by security holders		6,082	(1)	$	22.04		21,515	(2)
Equity compensation plans not approved by security holders		—			—		—
Total		6,082		$	22.04		21,515

(1) Includes 1.4 million performance share awards, which will only be issued if certain performance goals are met. The weighted-average exercise price in column (b) does not take these awards into account. Does not include an aggregate of 1.2 million shares of nonvested awards which will vest over the remaining years through 2013.

(2) Includes 21,514,634 shares available for future grants under the Total System Services, Inc. 2002 Long-Term Incentive Plan, 2007 Omnibus Plan and 2008 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares.

Effect On TSYS' Shareholders' Equity From GP Net's Acquisition Of Treasury Shares

The following table presents the effect on TSYS’ shareholders’ equity from GP Net’s acquisition of treasury shares:

(in thousands)	Year Ended December 31, 2011
Increase in other comprehensive income (OCI)	$	28
Increase in additional paid in capital		77
Effect from change in noncontrolling interests	$	105

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Summarized Status of Nonvested Shares and Changes during the Periods (Detail) (Non vested Restricted Awards, USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Non vested Restricted Awards
Shares
Outstanding at beginning of year	821,000	1,084,000	1,014,000
Granted	206,040	197,186	513,920
Vested	(376,000)	(416,000)	(414,000)
Forfeited/canceled	(33,000)	(44,000)	(30,000)
Outstanding at end of year	618,000	821,000	1,084,000
Weighted Average Grant-Date Fair Value
Outstanding at beginning of year	$ 16.91	$ 18.60	$ 23.46
Granted	$ 17.67	$ 15.55	$ 13.28
Vested	$ 17.60	$ 20.63	$ 23.77
Forfeited/canceled	$ 15.71	$ 17.32	$ 20.34
Outstanding at end of year	$ 16.80	$ 16.91	$ 18.60

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Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Reconciliation of Unrecognized Tax Benefits [Line Items]
Beginning balance	$ 4.5	[1]
Additions based on tax positions related to current year	1.4	[1]
Additions for tax positions of prior years	1.4	[1]
Reductions for tax positions of prior years	(1.6)	[1]
Settlements		[1]
Net, current activity	1.2	[1]
Ending balance	$ 5.7	[1]

[1] Unrecognized state tax benefits are not adjusted for the federal tax impact.

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Consolidated Statements of Equity and Comprehensive Income (USD $) In Thousands, unless otherwise specified	Total	Redeemable Noncontrolling Interests	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Retained Earnings	Noncontrolling Interests
Beginning Balance at Dec. 31, 2008	$ 1,000,850		$ 20,036	$ 126,889	$ (6,627)	$ (69,641)	$ 920,292	$ 9,901
Beginning Balance (in shares) at Dec. 31, 2008			200,354
Comprehensive income:
Net income	219,176						215,213	3,963
Other comprehensive (loss) income (OCI), net of tax (Note 18):
Foreign currency translation	12,162				12,145			17
Change in accumulated OCI related to postretirement healthcare plans	155				155
Other comprehensive income	12,317
Comprehensive income	231,493
Common stock issued from treasury shares for exercise of stock options (Note 16)	2			(17)		19
Common stock issued for nonvested awards (Note 16) (in shares)			506
Common stock issued for nonvested awards (Note 16)			50	(50)
Share-based compensation (Note 16)	16,225			16,225
Cash dividends declared ($0.31 in 2011, $0.28 in 2010 and $0.28 in 2009 per share)	(55,255)						(55,255)
Purchase of treasury shares (Note 17)	(328)					(328)
Subsidiary dividends paid to noncontrolling interests	(235)							(235)
Tax (shortfalls) benefits associated with share based payment arrangements	(3,305)			(3,305)
Ending Balance at Dec. 31, 2009	1,189,447		20,086	139,742	5,673	(69,950)	1,080,250	13,646
Ending Balance (in shares) at Dec. 31, 2009			200,860
Comprehensive income:
Net income	196,499	9,122					193,947	2,552
Other comprehensive (loss) income (OCI), net of tax (Note 18):
Foreign currency translation	(6,796)				(7,529)			733
Change in accumulated OCI related to postretirement healthcare plans	(729)				(729)
Other comprehensive income	(7,525)
Comprehensive income	188,974
Common stock issued from treasury shares for exercise of stock options (Note 16)	543			(186)		729
Common stock issued for nonvested awards (Note 16) (in shares)			466
Common stock issued for nonvested awards (Note 16)			47	(47)
Share-based compensation (Note 16)	15,796			15,796
Cash dividends declared ($0.31 in 2011, $0.28 in 2010 and $0.28 in 2009 per share)	(54,894)						(54,894)
Purchase of treasury shares (Note 17)	(46,228)					(46,228)
Fair value of non-controlling interest in TMS	(34,659)	145,659		(34,659)
Subsidiary dividends paid to noncontrolling interests	(250)	(8,781)						(250)
Tax (shortfalls) benefits associated with share based payment arrangements	(924)			(924)
Ending Balance at Dec. 31, 2010	1,257,805	146,000	20,133	119,722	(2,585)	(115,449)	1,219,303	16,681
Ending Balance (in shares) at Dec. 31, 2010			201,326
Comprehensive income:
Net income	224,026	(1,364)					220,559	3,467
Other comprehensive (loss) income (OCI), net of tax (Note 18):
Foreign currency translation	1,659				1,056			603
Change in accumulated OCI related to postretirement healthcare plans	1,056				1,056
Other comprehensive income	2,715
Comprehensive income	226,741
Common stock issued from treasury shares for exercise of stock options (Note 16)	8,065			(3,450)		11,515
Common stock issued for nonvested awards (Note 16) (in shares)			534
Common stock issued for nonvested awards (Note 16)			53	(53)
Common stock issued from treasury shares for nonvested awards (Note 16)				(172)		172
Share-based compensation (Note 16)	16,513			16,513
Cash dividends declared ($0.31 in 2011, $0.28 in 2010 and $0.28 in 2009 per share)	(59,228)						(59,228)
Purchase of treasury shares (Note 17)	(121,272)					(121,272)
Fair value of non-controlling interest in TMS	(6,828)	29,414		(6,828)
Redemption of redeemable noncontrolling interests		(174,050)
Subsidiary dividends paid to noncontrolling interests	(433)							(433)
Subsidiary repurchase of noncontrolling interests	(493)			77	28			(598)
Tax (shortfalls) benefits associated with share based payment arrangements	139			139
Ending Balance at Dec. 31, 2011	$ 1,321,009		$ 20,186	$ 125,948	$ (445)	$ (225,034)	$ 1,380,634	$ 19,720
Ending Balance (in shares) at Dec. 31, 2011			201,860

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Share-Based Compensation - Additional Information (Detail) (USD $)	12 Months Ended								1 Months Ended	12 Months Ended									1 Months Ended							12 Months Ended				1 Months Ended
	Dec. 31, 2011 Year	Dec. 31, 2010 Year	Dec. 31, 2009 Year	Dec. 31, 2011 Stock Options Granted During Or After 2006 Year	Dec. 31, 2011 Stock Options Granted During Or After 2006 Minimum	Dec. 31, 2011 Stock Options Granted Prior 2006 Year	Dec. 31, 2011 Stock Options Granted Prior 2006 Minimum	Dec. 31, 2011 Stock Options Granted Prior 2006 Maximum	Mar. 31, 2010 Stock Options Year	Dec. 31, 2011 Stock Options Year	Dec. 31, 2010 Stock Options	Dec. 31, 2009 Stock Options	Dec. 31, 2011 Stock Options Maximum	Dec. 31, 2011 Omnibus Stock Incentive Plan 2008	Dec. 31, 2011 Omnibus Stock Incentive Plan 2007	Dec. 31, 2011 Long Term Incentive Plan 2002	Dec. 31, 2011 Long Term Incentive Plan 2000	Dec. 31, 2011 Non vested Restricted Awards Year	Mar. 31, 2011 Performance Share Plan 2011	Mar. 31, 2011 Performance Share Plan 2011 Minimum	Mar. 31, 2011 Performance Share Plan 2011 Maximum	Mar. 31, 2010 Performance Share Plan 2010	Mar. 31, 2010 Performance Share Plan 2010 Minimum	Mar. 31, 2010 Performance Share Plan 2010 Maximum	Dec. 31, 2011 Performance Share Plan 2010 And 2011	Dec. 31, 2011 Performance Share Plan 2010 And 2011 Maximum	Dec. 31, 2008 Performance Share Plan 2008	Dec. 31, 2008 Performance Share Plan 2008 Minimum	Dec. 31, 2008 Performance Share Plan 2008 Maximum	Apr. 30, 2010 Performance Options Year	Apr. 30, 2010 Performance Options Stock Price At Specified Percentage Above Grant Date Stock Price	Apr. 30, 2010 Performance Options Attainment Of Earnings Per Share Goals
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable period of employee stock option				3 years			2 years	3 years
Expiration period of employee stock option				10 years		10 years							10 years
Years of age				62		50
Years of service					15 years		15 years
Percentage of fair market value of common stock in exercise price										100.00%
Aggregate number of shares granted to participants pursuant to awards														17,000,000	5,000,000	9,400,000	2,400,000
Share based compensation	$ 16,477,000	$ 15,832,000	$ 16,128,000
Unrecognized compensation cost related to nonvested share-based compensation arrangements										$ 4,900,000								$ 5,800,000							$ 4,200,000
Unrecognized compensation cost related to nonvested share-based compensation arrangements, remaining weighted average recognition period										1.7								1.6
Percentage of Performance shares that will vest per year, up to a maximum of 100% of the total grant, when the earnings per share goal is attained																											20.00%
Authorized shares of nonvested stock to key executives																			263,292			279,831
Percentage of performance shares grant expected to vest																			200.00%			200.00%					100.00%
Performance shares grant expected vesting Period																				2011	2013		2010	2012
Unrecognized compensation cost related to nonvested share-based compensation arrangements, recognition period																										2013
Performance shares grant performance period																											1 year
Performance shares grant vesting period																												5 years	7 years
Number of options granted	716,508	2,176,963	1,047,949						736,000	717,000	2,177,000	1,048,000																		1,400,000
Average fair value of option grant	$ 5.78	$ 4.11	$ 5.31						$ 5.33	$ 5.78	$ 4.11	$ 5.31																		$ 3.48
Exercise price	$ 17.61	$ 16.01	$ 13.11						$ 15.66	$ 17.61	$ 15.89	$ 13.11																		$ 16.19
Risk-free interest rate	2.96%	2.65%	3.19%						3.77%																					2.07%
Expected volatility	29.98%	30.00%	42.00%						30.00%																					30.00%
Expected term	8.5	4.9	8.6						8.6																					4.0
Dividend yield	1.59%	1.79%	2.14%						1.79%																					1.79%
Grant vesting period									3
Share based compensation arrangement by share based payment award, vest and exercisable date																															Apr. 30, 2013	Dec. 31, 2012

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Relationships with Affiliated Companies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Investments in and Advances to Affiliates [Line Items]
Accounts receivable balance associated with related parties	$ 9,700
Accounts payable balance associated with related parties	32,400
TSYS de Mexico
Investments in and Advances to Affiliates [Line Items]
Processing support fees paid to TSYS de Mexico	$ 168,000	$ 149,000	$ 147,000

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Summary of Weighted Average Assumptions and Fair Value of Options (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011 Year	Dec. 31, 2010 Year	Dec. 31, 2009 Year
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted	716,508	2,176,963	1,047,949
Weighted average exercise price	$ 17.61	$ 16.01	$ 13.11
Risk-free interest rate	2.96%	2.65%	3.19%
Expected volatility	29.98%	30.00%	42.00%
Expected term (years)	8.5	4.9	8.6
Dividend yield	1.59%	1.79%	2.14%
Weighted average fair value	$ 5.78	$ 4.11	$ 5.31

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Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2011

Results of Discontinued Operations

The following table presents the summarized results of discontinued operations for the years ended December 31, 2010 and 2009:

(in thousands)	2010			2009
Total revenues	$	7,430			181,060
Operating loss	$	(1,840	)		(4,890	)
Income taxes	$	(621	)		(1,626	)
Loss from discontinued operations, net of tax	$	(1,243	)		(3,219	)
Loss on disposition, net of tax	$	(2,002	)		(3,325	)

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Property and Equipment, net - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense related to property and equipment	$ 49.3	$ 50.1	$ 50.6

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Equity

12 Months Ended

Dec. 31, 2011

Equity

NOTE 15 Equity

DIVIDENDS:    Dividends on common stock of $53.9 million were paid in 2011, compared to $55.1 million and $55.2 million in 2010 and 2009, respectively.

EQUITY COMPENSATION PLANS:    The following table summarizes TSYS’ equity compensation plans by category; as of December 31, 2011:

(in thousands, except per share data) Plan Category	(a) Number of securities to  be issued upon exercise of outstanding options, warrants and rights			(b) Weighted-average exercise price of outstanding options, warrants and rights		(c) Number of securities  remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by security holders		6,082	(1)	$	22.04		21,515	(2)
Equity compensation plans not approved by security holders		—			—		—
Total		6,082		$	22.04		21,515

(1) Includes 1.4 million performance share awards, which will only be issued if certain performance goals are met. The weighted-average exercise price in column (b) does not take these awards into account. Does not include an aggregate of 1.2 million shares of nonvested awards which will vest over the remaining years through 2013.

(2) Includes 21,514,634 shares available for future grants under the Total System Services, Inc. 2002 Long-Term Incentive Plan, 2007 Omnibus Plan and 2008 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares.

CHANGES IN TSYS’ OWNERSHIP INTEREST IN SUBSIDIARIES:    TSYS’ subsidiary, GP Net repurchased 400 common shares on December 29, 2011 from its noncontrolling interest. As a result of the transaction, TSYS’ ownership increased to 54.08% from 53.00%. The following table presents the effect on TSYS’ shareholders’ equity from GP Net’s acquisition of treasury shares:

(in thousands)	Year Ended December 31, 2011
Increase in other comprehensive income (OCI)	$	28
Increase in additional paid in capital		77
Effect from change in noncontrolling interests	$	105

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Relationships with Affiliated Companies (Tables)

12 Months Ended

Dec. 31, 2011

Revenues Derived from Affiliated Companies

The table below details revenues derived from affiliated companies for the years ended December 31, 2011, 2010 and 2009:

(in thousands)	2011		2010		2009
Total revenues:
CUP Data	$	136		130		75
TSYS de México		62		51		51
Total revenues	$	198		181		126

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Summarized Status of Performance-based Nonvested Shares and Changes during the Period (Detail) (Performance Based Shares, USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Performance Based Shares
Shares
Outstanding at beginning of year	316,000	62,000	62,000
Granted	300,000	316,000	62,000
Vested	(36,000)	(62,000)	(62,000)
Forfeited/canceled
Outstanding at end of year	580,000	316,000	62,000
Weighted Average Grant Date Fair Value
Outstanding at beginning of year	$ 15.65	$ 13.69	$ 23.32
Granted	$ 17.63	$ 15.65	$ 13.69
Vested	$ 15.61	$ 13.69	$ 23.32
Forfeited/canceled
Outstanding at end of year	$ 16.68	$ 15.65	$ 13.69

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Acquisitions - Additional Information (Detail) (USD $)	12 Months Ended				1 Months Ended	12 Months Ended			1 Months Ended	12 Months Ended	1 Months Ended	12 Months Ended				1 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 29, 2011	Oct. 01, 2011 Merchant services Year	Dec. 31, 2011 Merchant services	Dec. 31, 2010 Merchant services	Dec. 31, 2009 Merchant services	May 02, 2011 TermNet Year Entity	Dec. 31, 2011 TermNet	Mar. 31, 2010 TSYS Merchant Solutions Year	Dec. 31, 2011 TSYS Merchant Solutions	Dec. 31, 2010 TSYS Merchant Solutions	Apr. 30, 2010 TSYS Merchant Solutions	Mar. 31, 2010 TSYS Merchant Solutions Noncontrolling Interests	Mar. 31, 2010 TSYS Merchant Solutions Noncontrolling Interests Minimum	Mar. 31, 2010 TSYS Merchant Solutions Noncontrolling Interests Maximum	Dec. 31, 2011 FNMS Holding, LLC	Mar. 31, 2010 FNMS Holding, LLC	Mar. 31, 2010 FNMS Holding, LLC First National Merchant Solutions, LLC	Mar. 31, 2010 FNMS Holding, LLC First National Bank of Omaha
Business Acquisition [Line Items]
Business acquisition, cash paid									$ 42,000,000		$ 150,450,000
Business acquisitions, number of merchants of business acquired									18,000
Business acquisition, goodwill									28,918,000
Business acquisition, fair value of accounts receivable									10,300,000
Business acquisition, gross amount of accounts receivable									10,400,000
Business acquisition, expected uncollectible amount of accounts receivable									100,000
Business acquisition, funds placed in escrow									8,400,000
Business acquisition, escrowed consideration period									18 months
Fair value of acquired identifiable intangible assets											100,800,000
Acquired intangible assets estimated useful life, minimum									2		3
Acquired intangible assets estimated useful life, maximum									10		10
Business acquisition, acquired intangible assets									11,740,000					80,500,000
Assumption used in fair value measurement, discount rate low range											4.00%				12.00%
Assumption used in fair vlaue, measurement, discount rate									14.00%
Assumption used in fair value measurement, discount rate high range											14.00%				14.00%
Assumption used in fair value measurement, royalty rate low range									3.00%		1.50%
Assumption used in fair value measurement, royalty rate high range									10.00%		7.00%
Assumption used in fair value measurement,, attrition rate low range											10.00%
Assumption used in fair vlaue, measurement, attrition rate									20.00%
Assumption used in fair value measurement, attrition rate high range											30.00%
Assumption used in fair value measurement, effective tax rate									36.00%		36.00%				36.00%
Assumption used in fair vlaue measurement, terminal value, long-term sustainable growth rate									3.00%							3.00%	5.00%
Business acquisition, transaction costs										192,000
Business acquisition, percentage of ownership													49.00%	51.00%					51.00%
Percentage of ownership interests				53.00%																100.00%	49.00%
Business acquisition, cost of acquired entity, purchase price													174,100,000	150,500,000					150,500,000
Business acquisition, purchase price allocation, goodwill, expected tax deductible amount														155,500,000				155,500,000
Revenues	1,808,966,000	1,717,577,000	1,677,483,000			487,400,000	457,800,000	325,600,000				32,700,000	97,700,000
Net income	222,662,000	205,621,000	219,176,000									4,200,000	12,700,000
Business acquisition, acquired intangible assets					2,600,000
Acquired intangible assets, Weighted Average Useful Lives					5
Payment of contingent merger consideration in connection with the purchase of Infonox	$ 6,000,000

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Treasury Stock

12 Months Ended

Dec. 31, 2011

Treasury Stock

NOTE 17 Treasury Stock

The following table summarizes shares held as treasury stock and their related carrying value:

At December 31, (in thousands)	Number  of Treasury Shares		Treasury Shares Cost
2011		12,829	$	225,034
2010		6,798		115,449
2009		3,680		69,950

Stock Repurchase Plan

On April 20, 2010, TSYS announced a stock repurchase plan to purchase up to 10 million shares of TSYS stock. The shares may be purchased from time to time over the next two years at prices considered attractive to the Company. On May 3, 2011, TSYS announced that its Board had approved an increase in the number of shares that may be repurchased under its current share repurchase plan from up to 10 million shares to up to 15 million shares of TSYS stock. The expiration date of the plan was also extended to April 30, 2013. Through December 31, 2011, the Company purchased 6.6 million shares for approximately $120.6 million, at an average price of $18.28.Through December 31, 2010, the Company purchased 3.1 million shares for approximately $45.1 million, at an average price of $14.60.

The following table sets forth information regarding the Company’s purchases of its common stock on a monthly basis during the three months ended December 31, 2011:

(in thousands, except per share data)	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Cumulative Shares  Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
October 2011		—	$	—		7,293		7,707
November 2011		—		—		7,293		7,707
December 2011		2,400		19.89		9,693		5,307
Total		2,400	$	19.89

Treasury Shares

In 2008, the Compensation Committee approved “share withholding for taxes” for all employee nonvested awards, and also for employee stock options under specified circumstances. The dollar amount of the income tax liability from each exercise is converted into TSYS shares and withheld at the statutory minimum. The shares are added to the treasury account and TSYS remits funds to the Internal Revenue Service to settle the tax liability. During 2011 and 2010, the Company acquired 37,081 shares for approximately $636,000 and 66,553 shares for approximately $1.1 million, respectively, as a result of share withholding for taxes.

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Weighted Average Useful Life of Each Component of Computer Software (Detail) (Computer Software, Intangible Asset)	12 Months Ended
	Dec. 31, 2011 Year
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	5.9
Licensed computer software
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	5.6
Software development costs
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	6.0
Acquisition technology intangibles
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Yrs)	6.9

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Components of Income Tax Expense Included in Consolidated Statements of Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Current income tax expense:
Federal	$ 83,518	$ 98,802	$ 115,301
State	4,666	4,221	4,311
Foreign	12,922	8,682	6,185
Total current income tax expense	101,106	111,705	125,797
Deferred income tax expense (benefit):
Federal	3,126	(2,970)	(4,210)
State	61	(643)	947
Foreign	(1,696)	(2,004)	(684)
Total deferred income tax expense (benefit)	1,491	(5,617)	(3,947)
Total income tax expense	$ 102,597	$ 106,088	$ 121,850

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Consolidated Statements of Equity and Comprehensive Income (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash dividends declared, per share	$ 0.31	$ 0.28	$ 0.28

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Accounts receivable, allowance for doubtful accounts and billing adjustments	$ 4.1	$ 4.5
Common stock, par value	$ 0.10	$ 0.10
Common stock, Authorized	600,000	600,000
Common stock, issued	201,860	201,326
Common stock, outstanding	189,031	194,528
Treasury stock, shares	12,829	6,798

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Goodwill

12 Months Ended

Dec. 31, 2011

Goodwill

NOTE 10 Goodwill

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet, an Atlanta-based merchant acquirer, for $42 million in cash. The Company has allocated approximately $28.9 million to goodwill. Refer to Note 24 for more information on TermNet.

In May 2011, TSYS made a payment of $6.0 million of contingent merger consideration in connection with the purchase of Infonox on the Web (Infonox), which was accounted for under Statement of Financial Accounting Standard No. 141 (SFAS No. 141), “Business Combinations.” The payment of the contingent merger consideration by TSYS was recorded as goodwill.

On April 1, 2010, TSYS acquired 51% ownership of TMS for approximately $150.5 million. TSYS acquired the remaining 49% interest in TMS on January 1, 2011 for approximately $174.1 million. The Company has allocated approximately $155.5 million to goodwill. Refer to Note 24 for more information on TMS.

With the sale of certain assets and liabilities of TPOS in 2010, the Company incurred a pre-tax goodwill impairment of $2.2 million (approximately $1.5 million after-tax), which is included in loss on discontinued operations, net of tax. TPOS was not a significant component to the Merchant Services segment.

The gross amount and accumulated impairment loss of goodwill at December 31, 2011 and 2010 is as follows:

	2011
	North America Services		International Services		Merchant Services			Consolidated
Gross amount	$	70,614		33,369		253,740		$	357,723
Accumulated impairment losses		—		—		(2,225	)		(2,225	)
Goodwill, net	$	70,614		33,369		251,515		$	355,498

	2010
	North America Services		International Services		Merchant Services			Consolidated
Gross amount	$	70,614		33,188		218,822		$	322,624
Accumulated impairment losses		—		—		(2,225	)		(2,225	)
Goodwill, net	$	70,614		33,188		216,597		$	320,399

In 2010, the Company sold certain assets and liabilities of TPOS, for which the Company had a pre-tax goodwill impairment of $2.2 million and is included in discontinued operations as part of the sale.

The changes in the carrying amount of goodwill at December 31, 2011 and 2010 are as follows:

(in thousands)	North America Services		International Services			Merchant Services		Consolidated
Balance as of December 31, 2009	$	70,614		34,181			61,101	$	165,896
TMS purchase price allocation		—		—			155,496		155,496
Currency translation adjustments		—		(993	)		—		(993	)
Balance as of December 31, 2010		70,614		33,188			216,597		320,399
TermNet purchase price allocation		—		—			28,918		28,918
Infonox additional purchase consideration		—		—			6,000		6,000
Currency translation adjustments		—		181			—		181
Balance as of December 31, 2011	$	70,614		33,369			251,515	$	355,498

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Treasury Stock - Additional Information (Detail) (USD $)	1 Months Ended			3 Months Ended	9 Months Ended	12 Months Ended			21 Months Ended
	Dec. 29, 2011	Dec. 31, 2011	May 03, 2011	Dec. 31, 2011	May 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011	May 03, 2011 Maximum	Apr. 20, 2010 Maximum Year
Equity, Class of Treasury Stock [Line Items]
Shares authorized to be repurchased under stock repurchase plan										15,000,000	10,000,000
Time shares may be purchased											2
Expiration date of shares authorized to be repurchased under stock repurchase plan			Apr. 30, 2013
Purchase of treasury shares (in shares)	400	2,400,000		2,400,000	3,100,000				6,600,000
Purchase of treasury shares					$ 45,100,000	$ 121,272,000	$ 46,228,000	$ 328,000	$ 120,600,000
Repurchase of common stock, average cost per share		$ 19.89		$ 19.89	$ 14.60				$ 18.28
Treasury stock acquired as a result of share withholding for taxes						37,081	66,553
Value of treasury stock acquired as a result of share withholding for taxes						$ 636,000	$ 1,100,000

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Effect On TSYS' Shareholders' Equity From GP Net's Acquisition Of Treasury Shares (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Subsidiary, Sale of Stock [Line Items]
Increase in other comprehensive income (OCI)	$ 28
Increase in additional paid in capital	77
Effect from change in noncontrolling interests	$ 105

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Summary of Equity Compensation Plans (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities to be issued upon exercise of outstanding options, warrants and rights	6,082
Weighted-average exercise price of outstanding options, warrants and rights	$ 22.04
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))	21,515
Equity compensation plans approved by security holders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities to be issued upon exercise of outstanding options, warrants and rights	6,082	[1]
Weighted-average exercise price of outstanding options, warrants and rights	$ 22.04
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))	21,515	[2]

[1] Includes 1.4 million performance share awards, which will only be issued if certain performance goals are met. The weighted-average exercise price in column (b) does not take these awards into account. Does not include an aggregate of 1.2 million shares of nonvested awards which will vest over the remaining years through 2013.

[2] Includes 21,514,634 shares available for future grants under the Total System Services, Inc. 2002 Long-Term Incentive Plan, 2007 Omnibus Plan and 2008 Omnibus Plan, which could be in the form of options, nonvested awards and performance shares.

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Supplemental Cash Flow Information - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Schedule of Cash Flow, Supplemental [Line Items]
Equipment and software acquired under capital lease	$ 8.1	$ 14.9	$ 6.7

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Revenues Based on the Domicile of the Company's Customers (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Segment Reporting Information [Line Items]
Total revenues	$ 1,808,966	$ 1,717,577	$ 1,677,483
Total revenues, percentage	100.00%	100.00%	100.00%
United States
Segment Reporting Information [Line Items]
Total revenues	1,227,800	1,204,400	1,183,800
Total revenues, percentage	67.90%	70.10%	70.60%
Europe
Segment Reporting Information [Line Items]
Total revenues	283,500	250,200	269,400
Total revenues, percentage	15.70%	14.60%	16.10%
Canada
Segment Reporting Information [Line Items]
Total revenues	171,500	161,900	139,700
Total revenues, percentage	9.50%	9.40%	8.30%
Japan
Segment Reporting Information [Line Items]
Total revenues	76,300	61,300	48,900
Total revenues, percentage	4.20%	3.60%	2.90%
Mexico
Segment Reporting Information [Line Items]
Total revenues	7,800	7,900	8,100
Total revenues, percentage	0.40%	0.50%	0.50%
Other
Segment Reporting Information [Line Items]
Total revenues	$ 42,100	$ 31,900	$ 27,600
Total revenues, percentage	2.30%	1.80%	1.60%

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2011	Feb. 21, 2012	Jun. 30, 2011
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Trading Symbol	TSS
Entity Registrant Name	TOTAL SYSTEM SERVICES INC
Entity Central Index Key	0000721683
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		188,880,349
Entity Public Float			$ 3,442,506,000

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Estimated Fair Value and Weighted Average Useful Lives of Identifiable Intangible Assets Acquired (Detail) (TermNet, USD $) In Thousands, unless otherwise specified	1 Months Ended
	May 02, 2011 Year
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets	$ 11,740
Acquired intangible assets, Weighted Average Useful Lives	7.3
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets	10,000
Acquired intangible assets, Weighted Average Useful Lives	7.0
Channel relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets	1,600
Acquired intangible assets, Weighted Average Useful Lives	10.0
Covenants-not-to-compete
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets	$ 100
Acquired intangible assets, Weighted Average Useful Lives	2.0

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Equity Investments

12 Months Ended

Dec. 31, 2011

Equity Investments

NOTE 11 Equity Investments

The Company has an equity investment with Promocíón y Operación, S.A. de C.V. and records its 49% ownership using the equity method of accounting. The operation, TSYS de México, prints statements and provides card-issuing support services to the equity investment clients and others.

The Company has an equity investment with China UnionPay Co., Ltd.(CUP) and records its 44.56% ownership using the equity method of accounting. CUP is sanctioned by the People’s Bank of China, China’s central bank, and has become one of the world’s largest and fastest-growing payments networks. CUP Data currently provides transaction processing, disaster recovery and other services for banks and bankcard issuers in China.

TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments. TSYS believes the carrying value approximates the underlying assets of the equity investments.

TSYS’ equity in income of equity investments (net of tax) for the years ended December 31, 2011, 2010 and 2009 was $8.7 million, $7.1 million and $7.0 million, respectively.

A summary of TSYS’ equity investments at December 31 is as follows:

(in thousands)	2011		2010
CUP Data	$	76,110		70,479
TSYS de México		6,814		6,648
Total	$	82,924		77,127

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Significant Components of Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Finite-Lived Intangible Assets [Line Items]
Gross	$ 121,076	$ 110,758
Accumulated Amortization	(39,826)	(27,640)
Net	81,250	83,118
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross	106,312	93,727
Accumulated Amortization	(34,899)	(22,859)
Net	71,413	70,868
Trade association
Finite-Lived Intangible Assets [Line Items]
Gross	10,000	10,000
Accumulated Amortization	(1,750)	(750)
Net	8,250	9,250
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross	2,024	6,031
Accumulated Amortization	(2,024)	(3,031)
Net		3,000
Channel relationships
Finite-Lived Intangible Assets [Line Items]
Gross	1,600
Accumulated Amortization	(107)
Net	1,493
Covenants-not-to-compete
Finite-Lived Intangible Assets [Line Items]
Gross	1,140	1,000
Accumulated Amortization	(1,046)	(1,000)
Net	$ 94

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Equity - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended			21 Months Ended
	Dec. 29, 2011	Dec. 31, 2011	Dec. 31, 2011	May 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends on common stock					$ 53.9	$ 55.1	$ 55.2
Purchase of treasury shares (in shares)	400	2,400,000	2,400,000	3,100,000				6,600,000
Percentage of ownership interests after transaction	54.08%
Percentage of ownership interests	53.00%

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Total revenues (Notes 4 and 22)	$ 1,808,966		$ 1,717,577		$ 1,677,483
Cost of services	1,257,970		1,201,012		1,149,883
Selling, general and administrative expenses	228,540		207,136		183,574
Operating income	322,456		309,429		344,026
Nonoperating expenses	(5,905)		(1,617)		(3,441)
Income from continuing operations before income taxes and equity in income of equity investments	316,551		307,812		340,585
Income taxes (Note 20)	102,597		106,088		121,850
Income from continuing operations before equity in income of equity investments	213,954		201,724		218,735
Equity in income of equity investments, net of tax (Note 11)	8,708		7,142		6,985
Income from continuing operations, net of tax	222,662		208,866		225,720
Loss from discontinued operations, net of tax			(3,245)		(6,544)
Net income	222,662		205,621		219,176
Net income attributable to noncontrolling interests	(2,103)		(11,674)		(3,963)
Net income attributable to TSYS common shareholders	220,559		193,947		215,213
Basic earnings per share (EPS) attributable to TSYS common shareholders (Note 26):
Income from continuing operations	$ 1.15	[1]	$ 1.00	[1]	$ 1.12	[1]
Loss from discontinued operations			$ (0.02)	[1]	$ (0.03)	[1]
Net income	$ 1.15	[1]	$ 0.99	[1]	$ 1.09	[1]
Diluted EPS attributable to TSYS common shareholders:
Income from continuing operations	$ 1.15	[1]	$ 1.00	[1]	$ 1.12	[1]
Loss from discontinued operations			$ (0.02)	[1]	$ (0.03)	[1]
Net income	$ 1.15	[1]	$ 0.99	[1]	$ 1.09	[1]
Amounts attributable to TSYS common shareholders:
Income from continuing operations	220,559		197,192		221,757
Loss from discontinued operations			(3,245)		(6,544)
Net income attributable to TSYS common shareholders	$ 220,559		$ 193,947		$ 215,213

[1] Note: Basic and diluted EPS amounts for continuing operations and net income may not total due to rounding.

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Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2011

Cash and Cash Equivalents

NOTE 5 Cash and Cash Equivalents

Cash and cash equivalent balances at December 31 are summarized as follows:

(in thousands)	2011		2010
Cash and cash equivalents in domestic accounts	$	263,853		347,734
Cash and cash equivalents in foreign accounts		52,484		47,061
Total	$	316,337		394,795

The Company maintains operating accounts outside the United States denominated in currencies other than the U.S. dollar. All amounts in domestic accounts are denominated in U.S. dollars.

At December 31, 2011 and 2010, the Company had $22.0 million and $29.9 million, respectively, of cash and cash equivalents in Money Market accounts that had an original maturity date of 90 days or less. The Company considers cash equivalents to be short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of change in interest rates.

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Relationships with Affiliated Companies

12 Months Ended

Dec. 31, 2011

Relationships with Affiliated Companies

NOTE 4 Relationships with Affiliated Companies

The Company provides electronic payment processing and other services to the Company’s equity investments, TSYS de México and CUP Data.

The foregoing related party services are performed under contracts that are similar to its contracts with unrelated third party customers. The Company believes the terms and conditions of transactions between the Company and these related parties are comparable to those which could have been obtained in transactions with unaffiliated parties.

Through its related party transactions, TSYS generates accounts receivable and liability accounts with TSYS de México and CUP Data. At December 31, 2011, the Company had an accounts receivable balance of $9,700 associated with related parties. At December 31, 2011, the Company had an accounts payable balance of $32,400 associated with related parties.

The table below details revenues derived from affiliated companies for the years ended December 31, 2011, 2010 and 2009:

(in thousands)	2011		2010		2009
Total revenues:
CUP Data	$	136		130		75
TSYS de México		62		51		51
Total revenues	$	198		181		126

The Company and TSYS de México are parties to an agreement where TSYS de México provides processing support to the Company. Processing support fees paid to TSYS de México were $168,000, $149,000 and $147,000 for the years ended December 31, 2011, 2010 and 2009, respectively.

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Share-Based Compensation

12 Months Ended

Dec. 31, 2011

Share-Based Compensation

NOTE 16 Share-Based Compensation

General Description of Share-Based Compensation Plans

TSYS has various long-term incentive plans under which the Compensation Committee of the Board of

Directors has the authority to grant share-based compensation to TSYS employees.

Employee stock options granted during or after 2006 (other than performance-based stock options) generally become exercisable at the end of the three-year period and expire ten years from the date of grant. Vesting for stock options granted during or after 2006 (other than performance-based stock options) accelerates upon retirement for plan participants who have reached age 62 and who also have no less than fifteen years of service at the date of their election to retire. For stock options granted in 2006, share-based compensation expense is fully recognized for plan participants upon meeting the retirement eligibility requirements of age and service.

Stock options granted prior to 2006 generally become exercisable at the end of a two to three-year period and expire ten years from the date of grant. Vesting for stock options granted prior to 2006 accelerates upon retirement for plan participants who have reached age 50 and who also have no less than fifteen years of service at the date of their election to retire. Following adoption of ASC 718, share-based compensation expense is recognized in income over the remaining nominal vesting period with consideration for retirement eligibility.

The performance-based stock options awarded to TSYS executives effective April 30, 2010 become exercisable only upon satisfaction of certain performance conditions. Share-based compensation expense is recognized in income based upon the Company’s estimate of the probability of achieving the specified EPS goal. The Company historically issues new shares or uses treasury shares to satisfy share option exercises.

Long-Term Incentive Plans

TSYS maintains the Total System Services, Inc. 2008 Omnibus Plan, Total System Services, Inc. 2007 Omnibus Plan, Total System Services, Inc. 2002 Long-Term Incentive Plan and Total System Services, Inc. 2000 Long-Term Incentive Plan to advance the interests of TSYS and its shareholders through awards that give employees and directors a personal stake in TSYS’ growth, development and financial success. Awards under these plans are designed to motivate employees and directors to devote their best efforts to the business of TSYS. Awards will also help TSYS attract and retain the services of employees and directors who are in a position to make significant contributions to TSYS’ success.

The plans are administered by the Compensation Committee of the Company’s Board of Directors and enable the Company to grant nonqualified and incentive stock options, stock appreciation rights, restricted stock and restricted stock units, performance units or performance shares, cash-based awards, and other stock-based awards.

All stock options must have a maximum life of no more than ten years from the date of grant. The exercise price will not be less than 100% of the fair market value of TSYS’ common stock at the time of grant. Any shares related to awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares, are settled in cash in lieu of shares, or are exchanged with the Committee’s permission, prior to the issuance of shares, for awards not involving shares, shall be available again for grant under the various plans. The aggregate number of shares of TSYS stock which may be granted to participants pursuant to awards granted under the various plans may not exceed the following: Total System Services, Inc. 2008 Omnibus Plan — 17 million shares; Total System Services, Inc. 2007 Omnibus Plan — 5 million shares; Total System Services, Inc. 2002 Long-Term Incentive Plan — 9.4 million shares; and Total System Services, Inc. 2000 Long-Term Incentive Plan — 2.4 million shares. Effective February 1, 2010, no additional awards may be made from the Total System Services, Inc. 2000 Long-Term Incentive Plan.

Share-Based Compensation

TSYS’ share-based compensation costs are included as expenses and classified as cost of services and selling, general and administrative. TSYS does not include amounts associated with share-based compensation as costs capitalized as software development and contract acquisition costs as these awards are typically granted to individuals not involved in capitalizable activities. For the year ended December 31, 2011, share-based compensation was $16.5 million compared to $15.8 million and $16.1 million for the same periods in 2010 and 2009, respectively.

Nonvested Awards:    The Company granted shares of TSYS common stock to certain key employees and non-management members of its Board of Directors. The grants to certain key employees were issued under nonvested stock bonus awards for services to be provided in the future by such officers, and employees. Beginning in 2011, the grants to the Board of Directors were fully vested on the date of grant. The following table summarizes the number of shares granted each year:

	2011		2010		2009
Number of shares		206,040		197,186		513,920
Market value	$	3.6 million	$	3.1 million	$	6.8 million

A summary of the status of TSYS’ nonvested shares as of December 31, 2011, 2010 and 2009, respectively, and the changes during the periods are presented below:

	2011					2010					2009
Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value
Outstanding at beginning of year		821		$	16.91		1,084		$	18.60		1,014		$	23.46
Granted		206			17.67		197			15.55		514			13.28
Vested		(376	)		17.60		(416	)		20.63		(414	)		23.77
Forfeited/canceled		(33	)		15.71		(44	)		17.32		(30	)		20.34
Outstanding at end of year		618		$	16.80		821		$	16.91		1,084		$	18.60

As of December 31, 2011, there was approximately $5.8 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted average period of 1.6 years.

In March 2011, TSYS authorized a total grant of 263,292 performance shares to certain key executives with a performance based vesting schedule (2011 performance shares). These 2011 performance shares have a 2011-2013 performance period for which the Compensation Committee established two performance goals: compound growth in revenues before reimbursables and income from continuing. The Compensation Committee will certify the attainment level of such goals following the end of 2013, and the number of performance shares that will vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company will estimate the probability of achieving the goals through the performance period and will expense the award on a straight-line basis.

In March 2010, TSYS authorized a total grant of 279,831 performance shares to certain key executives with a performance based vesting schedule (2010 performance shares). These 2010 performance shares have a 2010-2012 performance period for which the Compensation Committee established two performance goals: compound growth in revenues before reimbursables and income from continuing operations using the 2010 annual operating plan as the base. The Compensation Committee will certify the attainment level of such goals following the end of 2012, and the number of performance shares that will vest, up to a maximum of 200% of the total grant. Compensation expense for the award is measured on the grant date based on the quoted market price of TSYS common stock. The Company will estimate the probability of achieving the goals through the performance period and will expense the award on a straight-line basis.

As of December 31, 2011, there was approximately $4.2 million of total unrecognized compensation cost related to the 2010 and 2011 performance shares compensation arrangement. That cost is expected to be recognized until the end of 2013.

During 2008, TSYS authorized a grant of non-vested awards to two key executives with separate performance vesting schedules. These grants have separate one-year performance periods that vest over five to seven years during each of which the Compensation Committee establishes an earnings per share goal and, if such goal is attained during any performance period, 20% of the performance-based shares will vest, up to a maximum of 100% of the total grant. Compensation expense for each year’s award is measured on the grant date based on the quoted market price of TSYS common stock and is expensed on a straight-line basis for the year.

A summary of the awards authorized in each year is below:

Year of Initial Award	Total Number of Shares Awarded		Potential Number of Performance-Based Shares to be Vested
2011		263,292		263,292	(2014	)
2010		279,831		279,831	(2013	)
2008		182,816		73,125	(2012-2014	)

A summary of the status of TSYS’ performance-based nonvested shares as of December 31, 2011, 2010 and 2009, respectively, and changes during those periods are presented below:

	2011					2010					2009
Performance-based Nonvested shares (in thousands, except per share data)	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value
Outstanding at beginning of year		316		$	15.65		62		$	13.69		62		$	23.32
Granted		300			17.63		316			15.65		62			13.69
Vested		(36	)		15.61		(62	)		13.69		(62	)		23.32
Forfeited/canceled		—			—		—			—		—			—
Outstanding at end of year		580		$	16.68		316		$	15.65		62		$	13.69

Stock Option Awards

During 2011, the Company granted stock options to key TSYS executive officers and non-management members of its Board of Directors. During 2010 and 2009, the Company granted stock options to key TSYS executive officers. The grants to key TSYS executive officers were issued under nonvested stock bonus awards for services to be provided in the future by such officers. The grants to the Board of Directors were fully vested on the date of grant. The average fair value of the options granted was estimated on the date of grant using the Black-Scholes-Merton option-pricing model. The following table summarizes the weighted average assumptions, and the weighted average fair value of the options:

	2011			2010			2009
Number of options granted		716,508			2,176,963			1,047,949
Weighted average exercise price	$	17.61		$	16.01		$	13.11
Risk-free interest rate		2.96	%		2.65	%		3.19	%
Expected volatility		29.98	%		30.00	%		42.00	%
Expected term (years)		8.5			4.9			8.6
Dividend yield		1.59	%		1.79	%		2.14	%
Weighted average fair value	$	5.78		$	4.11		$	5.31

In April 2010, the Company granted 1.4 million stock options to key TSYS executive officers that are performance- and/or market conditions-based. These stock options will vest and become exercisable only if the stock price is at least a specified percentage above the grant date stock price on April 30, 2013 or TSYS reaches a specified EPS goal by December 31, 2012. Given the market conditions component, TSYS evaluated the impact using the Monte Carlo simulation to value these awards and ultimately determined that the impact was minimal. The average fair value of the option grants was $3.48 per option and was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions: exercise price of $16.19; risk-free interest rate of 2.07%; expected volatility of 30.0%; expected term of 4.0 years; and dividend yield of 1.79%.

In March 2010, the Company also granted 736,000 stock options to key TSYS executive officers. The average fair value of the option grant was $5.33 per option and was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions: exercise price of $15.66; risk-free interest rate of 3.77%; expected volatility of 30.0%; expected term of 8.6 years; and dividend yield of 1.79%. The grant will vest over a period of 3 years.

A summary of TSYS’ stock option activity as of December 31, 2011, 2010 and 2009, and changes during the years ended on those dates is presented below:

	2011					2010					2009
(in thousands, except per share data)	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Options:
Outstanding at beginning of year		8,810		$	23.40		6,955		$	25.54		6,185		$	27.59
Granted		717			17.61		2,177			15.89		1,048			13.11
Exercised		(597	)		13.51		(41	)		13.11		(1	)		1.83
Forfeited/canceled		(2,848	)		29.46		(281	)		19.83		(277	)		24.36
Outstanding at end of year		6,082		$	20.61		8,810		$	23.40		6,955		$	25.54
Options exercisable at year-end		3,122		$	25.00		5,712		$	27.48		5,357		$	28.15
Weighted average fair value of options granted during the year				$	5.78				$	4.11				$	5.31

	Outstanding			Exercisable
Average remaining contractual life (in years)		4.9			4.0
Aggregate intrinsic value (in thousands)	$	(6,401	)	$	(16,967	)

Shares Issued for Options Exercised

During 2011, 2010 and 2009, employees of the Company exercised options for shares of TSYS common stock that were issued from treasury. The table below summarizes these stock option exercises by year:

	Options Exercised		Shares Issued from Treasury		Intrinsic Value
2011		597,161		597,161	$	3,627,000
2010		41,403		41,403	$	90,400
2009		1,205		1,205	$	14,300

For awards granted before January 1, 2006 that were not fully vested on January 1, 2006, the Company will record the tax benefits from the exercise of stock options as increases to the “Additional paid-in capital” line item of the Consolidated Balance Sheets. If the Company does recognize tax benefits, the Company will record these tax benefits from share-based compensation costs as cash inflows in the financing section and cash outflows in the operating section in the Statement of Cash Flows. The Company has elected to use the short-cut method to calculate its historical pool of windfall tax benefits.

As of December 31, 2011, there was approximately $4.9 million of total unrecognized compensation cost related to TSYS stock options that is expected to be recognized over a remaining weighted average period of 1.7 years.

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Other Intangible Assets, net

12 Months Ended

Dec. 31, 2011

Other Intangible Assets, net

NOTE 12 Other Intangible Assets, net

On May 2, 2011, TSYS completed its acquisition of all of the outstanding common stock of TermNet, an Atlanta-based merchant acquirer, for $42 million in cash. The Company allocated approximately $11.7 million to other intangible assets as part of the purchase price allocation to customer relationships, channel relationships and covenant-not-to-compete. Refer to Note 24 for more information on TermNet.

In April 2010, TSYS acquired 51% ownership in TMS. TSYS acquired the remaining 49% interest in January 2011. The Company allocated approximately $80.5 million to other intangible assets as part of the purchase price allocation to customer relationships, trade name and trade association. Refer to Note 24 for more information on TMS.

Significant components of other intangible assets at December 31 are summarized as follows:

	2011
(in thousands)	Gross		Accumulated Amortization			Net
Customer relationships	$	106,312		(34,899	)	$	71,413
Trade association		10,000		(1,750	)		8,250
Trade name		2,024		(2,024	)		—
Channel relationships		1,600		(107	)		1,493
Covenants-not-to-compete		1,140		(1,046	)		94
Total	$	121,076		(39,826	)	$	81,250

	2010
(in thousands)	Gross		Accumulated Amortization			Net
Customer relationships	$	93,727		(22,859	)	$	70,868
Trade association		10,000		(750	)		9,250
Trade name		6,031		(3,031	)		3,000
Covenants-not-to-compete		1,000		(1,000	)		—
Total	$	110,758		(27,640	)	$	83,118

Amortization related to other intangible assets, which is recorded in selling, general and administrative expenses, was $13.2 million, $11.2 million and $3.4 million for 2011, 2010 and 2009, respectively.

The weighted average useful life for each component of other intangible assets, and in total, at December 31, 2011 is as follows:

	Weighted Average Amortization Period (Yrs)
Channel relationships		10.0
Trade association		10.0
Customer relationships		7.9
Trade name		2.8
Covenant-not-to-compete		2.7
Total		8.0

Estimated future amortization expense on other intangible assets as of December 31, 2011 for the next five years is:

(in thousands)
2012	$	14,145
2013		12,848
2014		12,575
2015		11,896
2016		11,766

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Summary of Long-term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 21, 2007
Debt Instrument [Line Items]
Long-term debt	$ 220,355	$ 234,260
Less current portion	181,251	39,557
Noncurrent portion of long-term debt	39,104	194,703
Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent
Debt Instrument [Line Items]
Long-term debt	168,000	168,000	168,000
Notes One Point Fifty Percent
Debt Instrument [Line Items]
Long-term debt	26,703	39,758
Unsecured Term Loan LIBOR Plus Zero Point Eighty Percent
Debt Instrument [Line Items]
Long-term debt	25,652	23,937
Notes Three Point Ninety Five Percent
Debt Instrument [Line Items]
Long-term debt		1,790
Unsecured Term Loan LIBOR Plus Two Percent
Debt Instrument [Line Items]
Long-term debt		$ 775

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Computer Software, net

12 Months Ended

Dec. 31, 2011

Computer Software, net

NOTE 8 Computer Software, net

Computer software at December 31 is summarized as follows:

(in thousands)	2011		2010
Licensed computer software	$	423,100		403,115
Software development costs		283,452		265,029
Acquisition technology intangibles		76,055		75,891
Total computer software		782,607		744,035
Less accumulated amortization:
Licensed computer software		309,571		275,145
Software development costs		208,781		183,853
Acquisition technology intangibles		49,011		38,613
Total accumulated amortization		567,363		497,611
Computer software, net	$	215,244		246,424

TSYS acquired 51% ownership in TMS in April 2010. TSYS acquired the remaining 49% interest in TMS in January 2011. The Company allocated approximately $20.3 million to acquisition technology intangibles during 2010. Refer to Note 24 for more information on TMS.

Amortization expense related to licensed computer software costs was $37.1 million, $33.4 million and $31.4 million for the years ended December 31, 2011, 2010 and 2009, respectively. Amortization expense includes amounts for computer software acquired under capital lease. Amortization of software development costs was $24.4 million, $23.1 million and $20.0 million for the years ended December 31, 2011, 2010 and 2009, respectively. Amortization expense related to acquisition technology intangibles was $10.3 million for 2011, $9.9 million for 2010 and $6.9 million for 2009.

During the year ended December 31, 2011, the Company recognized an impairment loss of $960,000 related to the Japan Retail Gift program.

The weighted average useful life for each component of computer software, and in total, at December 31, 2011, is as follows:

	Weighted Average Amortization Period (Yrs)
Licensed computer software		5.6
Software development costs		6.0
Acquisition technology intangibles		6.9
Total		5.9

Estimated future amortization expense of licensed computer software, software development costs and acquisition technology intangibles as of December 31, 2011 for the next five years is:

(in thousands)	Licensed Computer Software		Software Development Costs		Acquisition Technology Intangibles
2012	$	38,573		38,456		9,319
2013		30,891		14,968		7,665
2014		22,125		11,135		5,873
2015		15,287		7,302		2,828
2016		6,349		1,892		1,359

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Revenues Derived from Affiliated Companies (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Related Party Transaction [Line Items]
Revenue	$ 198	$ 181	$ 126
CUP Data
Related Party Transaction [Line Items]
Revenue	136	130	75
TSYS de Mexico
Related Party Transaction [Line Items]
Revenue	$ 62	$ 51	$ 51

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Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Income Tax Contingency [Line Items]
Statutory federal income tax rate	35.00%
Deferred tax assets from net operating losses carryforwards	$ 15,500,000	$ 15,300,000
Deferred tax assets from capital losses carryforwards	1,900,000	2,100,000
Deferred tax assets from federal and state income tax credit carryforwards	8,500,000	2,500,000
Tax credit carryforward beginning expiration year	2012
Operating loss carryforward beginning expiration date	2012
Valuation allowance for deferred income tax assets	19,207,000	15,434,000
Increase (decrease) in valuation allowance for deferred income tax assets	3,800,000	2,600,000
Undistributed earnings	51,200,000
Gross accrued interest and penalties on unrecognized tax benefits	600,000	1,100,000
Unrecognized income tax benefits that, if recognized, would affect the effective tax rates	5,400,000	4,200,000
Unrecognized income tax benefits that, if recognized, would affect the effective tax rates , interest and penalties	$ 500,000	$ 1,000,000

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Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2011

Prepaid Expenses and Other Current Assets

NOTE 6 Prepaid Expenses and Other Current Assets

Significant components of prepaid expenses and other current assets at December 31 are summarized as follows:

(in thousands)	2011		2010
Prepaid expenses	$	20,917		15,421
Supplies inventory		10,053		7,138
Income taxes receivable		126		12,977
Other		41,335		42,312
Total	$	72,431		77,848

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Property and Equipment, net

12 Months Ended

Dec. 31, 2011

Property and Equipment, net

NOTE 7 Property and Equipment, net

Property and equipment balances at December 31 are as follows:

(in thousands)	2011		2010
Computer and other equipment	$	248,592		230,773
Buildings and improvements		230,797		227,881
Furniture and other equipment		127,425		125,627
Land		16,794		16,729
Other		130		16,461
Total property and equipment		623,738		617,471
Less accumulated depreciation and amortization		357,130		317,369
Property and equipment, net	$	266,608		300,102

Depreciation and amortization expense related to property and equipment was $49.3 million, $50.1 million and $50.6 million for the years ended December 31, 2011, 2010 and 2009, respectively. Depreciation expense includes amounts for equipment acquired under capital lease. The decrease in other property and equipment assets for 2011 as compared to 2010 is primarily due to the Company’s reclassification of assets from construction in progress to other noncurrent assets.

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Contract Acquisition Costs, net

12 Months Ended

Dec. 31, 2011

Contract Acquisition Costs, net

NOTE 9 Contract Acquisition Costs, net

Significant components of contract acquisition costs at December 31 are summarized as follows:

(in thousands)	2011		2010
Conversion costs, net	$	88,765		80,521
Payments for processing rights, net		74,222		85,730
Total	$	162,987		166,251

Amortization related to payments for processing rights, which is recorded as a reduction of revenues, was $15.9 million, $17.7 million and $25.5 million for 2011, 2010 and 2009, respectively.

Amortization expense related to conversion costs was $18.8 million, $17.5 million and $17.8 million for 2011, 2010 and 2009, respectively.

During the year ended December 31, 2011, the Company recognized an impairment loss related to payments for processing rights of $750,000 and an impairment loss related to conversion costs of $49,000.

The weighted average useful life for each component of contract acquisition costs, and in total, at December 31, 2011 is as follows:

	Weighted Average Amortization Period (Yrs)
Payments for processing rights		9.6
Conversion costs		7.4
Total		8.6

Estimated future amortization expense on payments for processing rights and conversion costs as of December 31, 2011 for the next five years is:

(in thousands)	Payments for Processing Rights		Conversion Costs
2012	$	14,742		17,825
2013		14,355		18,115
2014		12,289		15,906
2015		8,429		13,838
2016		8,608		11,149

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Property and Equipment Balances (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Computer and other equipment	$ 248,592	$ 230,773
Buildings and improvements	230,797	227,881
Furniture and other equipment	127,425	125,627
Land	16,794	16,729
Other	130	16,461
Total property and equipment	623,738	617,471
Less accumulated depreciation and amortization	357,130	317,369
Property and equipment, net	$ 266,608	$ 300,102

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Reconciliation of Geographic Revenues to Revenues by Operating Segment Based on the Domicile of the Company's Customers (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Segment Reporting Information [Line Items]
Total revenues	$ 1,808,966	$ 1,717,577	$ 1,677,483
North America Services
Segment Reporting Information [Line Items]
Total revenues	930,700	927,600	1,016,300
International Services
Segment Reporting Information [Line Items]
Total revenues	390,900	332,200	335,600
Merchant services
Segment Reporting Information [Line Items]
Total revenues	487,400	457,800	325,600
United States
Segment Reporting Information [Line Items]
Total revenues	1,227,800	1,204,400	1,183,800
United States | North America Services
Segment Reporting Information [Line Items]
Total revenues	741,500	748,200	859,500
United States | Merchant services
Segment Reporting Information [Line Items]
Total revenues	486,300	456,200	324,300
Europe
Segment Reporting Information [Line Items]
Total revenues	283,500	250,200	269,400
Europe | North America Services
Segment Reporting Information [Line Items]
Total revenues	700	800	800
Europe | International Services
Segment Reporting Information [Line Items]
Total revenues	282,800	249,400	268,600
Canada
Segment Reporting Information [Line Items]
Total revenues	171,500	161,900	139,700
Canada | North America Services
Segment Reporting Information [Line Items]
Total revenues	171,100	161,400	139,200
Canada | Merchant services
Segment Reporting Information [Line Items]
Total revenues	400	500	500
Japan
Segment Reporting Information [Line Items]
Total revenues	76,300	61,300	48,900
Japan | International Services
Segment Reporting Information [Line Items]
Total revenues	76,300	61,300	48,900
Mexico
Segment Reporting Information [Line Items]
Total revenues	7,800	7,900	8,100
Mexico | North America Services
Segment Reporting Information [Line Items]
Total revenues	7,800	7,900	8,100
Other
Segment Reporting Information [Line Items]
Total revenues	42,100	31,900	27,600
Other | North America Services
Segment Reporting Information [Line Items]
Total revenues	9,600	9,300	8,700
Other | International Services
Segment Reporting Information [Line Items]
Total revenues	31,800	21,500	18,100
Other | Merchant services
Segment Reporting Information [Line Items]
Total revenues	$ 700	$ 1,100	$ 800

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Summary of Long-term Debt (Parenthetical) (Detail)	1 Months Ended	12 Months Ended					12 Months Ended						12 Months Ended
	Dec. 21, 2007	Dec. 31, 2011 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent	Dec. 31, 2010 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent	Dec. 31, 2011 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent LIBOR	Dec. 31, 2010 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent LIBOR	Dec. 21, 2007 Unsecured Term Loan LIBOR Plus Zero Point Sixty Percent LIBOR	Dec. 31, 2011 Notes One Point Fifty Percent	Dec. 31, 2010 Notes One Point Fifty Percent	Dec. 31, 2011 Unsecured Term Loan LIBOR Plus Zero Point Eighty Percent	Dec. 31, 2010 Unsecured Term Loan LIBOR Plus Zero Point Eighty Percent	Dec. 31, 2011 Unsecured Term Loan LIBOR Plus Zero Point Eighty Percent LIBOR	Dec. 31, 2010 Unsecured Term Loan LIBOR Plus Zero Point Eighty Percent LIBOR	Dec. 31, 2011 Notes Three Point Ninety Five Percent	Dec. 31, 2010 Notes Three Point Ninety Five Percent	Dec. 31, 2011 Unsecured Term Loan LIBOR Plus Two Percent	Dec. 31, 2010 Unsecured Term Loan LIBOR Plus Two Percent	Dec. 31, 2011 Unsecured Term Loan LIBOR Plus Two Percent LIBOR	Dec. 31, 2010 Unsecured Term Loan LIBOR Plus Two Percent LIBOR
Debt Instrument [Line Items]
Debt instrument, margin rate				0.60%	0.60%	0.60%					0.80%	0.80%					2.00%	2.00%
Debt instrument, interest rate							1.50%	1.50%					3.95%	3.95%
Debt instrument, maturity date	Dec. 21, 2012	Dec. 21, 2012	Dec. 21, 2012				Dec. 31, 2013	Dec. 31, 2013	Nov. 05, 2014	Nov. 05, 2014			Mar. 01, 2011	Mar. 01, 2011	Nov. 16, 2011	Nov. 16, 2011

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Summary of Computer Software (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Schedule Of Research And Development [Line Items]
Computer software	$ 782,607	$ 744,035
Accumulated amortization	567,363	497,611
Computer software, net	215,244	246,424
Licensed computer software
Schedule Of Research And Development [Line Items]
Computer software	423,100	403,115
Accumulated amortization	309,571	275,145
Software development costs
Schedule Of Research And Development [Line Items]
Computer software	283,452	265,029
Accumulated amortization	208,781	183,853
Acquisition technology intangibles
Schedule Of Research And Development [Line Items]
Computer software	76,055	75,891
Accumulated amortization	$ 49,011	$ 38,613

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Summary of Shares Held as Treasury Stock and Related Carrying Value (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Equity, Class of Treasury Stock [Line Items]
Number of Treasury Shares	12,829	6,798	3,680
Treasury Shares Cost	$ 225,034	$ 115,449	$ 69,950

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Significant Components of Prepaid Expenses and Other Current Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
Prepaid expenses	$ 20,917	$ 15,421
Supplies inventory	10,053	7,138
Income taxes receivable	126	12,977
Other	41,335	42,312
Total	$ 72,431	$ 77,848

XML

Summary of Equity Compensation Plans (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities to be issued upon exercise of outstanding options, warrants and rights	6,082,000
Equity compensation plans approved by security holders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities to be issued upon exercise of outstanding options, warrants and rights	6,082,000	[1]
Aggregate shares of nonvested awards	1,200,000
Nonvested awards expected vesting period	2013
Shares available for future grants	21,514,634
Equity compensation plans approved by security holders | Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities to be issued upon exercise of outstanding options, warrants and rights	1,400,000

[1] Includes 1.4 million performance share awards, which will only be issued if certain performance goals are met. The weighted-average exercise price in column (b) does not take these awards into account. Does not include an aggregate of 1.2 million shares of nonvested awards which will vest over the remaining years through 2013.

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Basic and Diluted EPS under the Guidance of ASC 260 (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Basic EPS:
Net income	$ 220,559		$ 193,947		$ 215,213
Basic EPS(a)/(b)	$ 1.15	[1]	$ 0.99	[1]	$ 1.09	[1]
Diluted EPS:
Net income	220,559		193,947		215,213
Diluted EPS(c)/(d)	$ 1.15	[1]	$ 0.99	[1]	$ 1.09	[1]
Common Stock
Basic EPS:
Net income	220,559		193,947		215,213
Less income allocated to nonvested awards	(805)		(959)		(1,644)
Net income allocated to common stock for EPS calculation(a)	219,754		192,988		213,569
Average common shares outstanding(b)	191,239		195,378		195,623
Basic EPS(a)/(b)	$ 1.15		$ 0.99		$ 1.09
Diluted EPS:
Net income	220,559		193,947		215,213
Less income allocated to nonvested awards	(804)		(959)		(1,644)
Net income allocated to common stock for EPS calculation(c)	219,755		192,988		213,569
Average common shares outstanding	191,239		195,378		195,623
Increase due to assumed issuance of shares related to common equivalent shares outstanding	345		193		63
Average common and common equivalent shares outstanding(d)	191,584		195,571		195,686
Diluted EPS(c)/(d)	$ 1.15		$ 0.99		$ 1.09
Participating Securities
Basic EPS:
Less income allocated to nonvested awards	805		959		1,644
Net income allocated to common stock for EPS calculation(a)	805		959		1,644
Average common shares outstanding(b)	707		975		1,511
Basic EPS(a)/(b)	$ 1.14		$ 0.98		$ 1.09
Diluted EPS:
Less income allocated to nonvested awards	804		959		1,644
Net income allocated to common stock for EPS calculation(c)	$ 804		$ 959		$ 1,644
Average common shares outstanding	707		975		1,511
Average common and common equivalent shares outstanding(d)	707		975		1,511
Diluted EPS(c)/(d)	$ 1.14		$ 0.98		$ 1.09

[1] Note: Basic and diluted EPS amounts for continuing operations and net income may not total due to rounding.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

ACQUISITIONS - PURCHASE PRICE ALLOCATION

ACQUISITIONS — PURCHASE PRICE ALLOCATION:    TSYS adopted revised generally accepted accounting principles (GAAP) relating to business combinations as of January 1, 2009. The revised guidance retains the purchase method of accounting for acquisitions and requires a number of changes to the previous guidance, including changes in the way assets and liabilities are recognized in purchase accounting. Other changes include requiring the recognition of assets acquired and liabilities assumed arising from contingencies, requiring the capitalization of in-process research and development at fair value, and requiring the expensing of acquisition-related costs as incurred.

TSYS’ purchase price allocation methodology requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities. TSYS estimates the fair value of assets and liabilities based upon appraised market values, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses. Management determines the fair value of fixed assets and identifiable intangible assets such as developed technology or customer relationships, and any other significant assets or liabilities. TSYS adjusts the purchase price allocation, as necessary, up to one year after the acquisition closing date as TSYS obtains more information regarding asset valuations and liabilities assumed. Unanticipated events or circumstances may occur which could affect the accuracy of the Company’s fair value estimates, including assumptions regarding industry economic factors and business strategies, and result in an impairment or a new allocation of purchase price.

Given its history of acquisitions, TSYS may allocate part of the purchase price of future acquisitions to contingent consideration as required by GAAP for business combinations. The fair value calculation of contingent consideration will involve a number of assumptions that are subjective in nature and which may differ significantly from actual results. TSYS may experience volatility in its earnings to some degree in future reporting periods as a result of these fair value measurements.

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION:    The accompanying consolidated financial statements of Total System Services, Inc. include the accounts of TSYS and its majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities as defined in accordance with the provisions of Accounting Standards Codification (ASC) 810, “Consolidation,” and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810.

RISKS AND UNCERTAINTIES AND USE OF ESTIMATES

RISKS AND UNCERTAINTIES AND USE OF ESTIMATES:    Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, lower than anticipated growth from existing clients, an inability to attract new clients and grow internationally, loss of a major customer or other significant client, loss of a major supplier, an inability to grow through acquisitions or successfully integrate acquisitions, an inability to control expenses, technology changes, the impact of the application of and/or changes in accounting principles, financial services consolidation, changes in regulatory requirements, a decline in the use of cards as a payment mechanism, disruption of the Company’s international operations, breach of the Company’s security systems, a decline in the financial stability of the Company’s clients and uncertain economic conditions. Negative developments in these or other risk factors could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

The Company has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates and assumptions are developed based upon all information available. Actual results could differ from estimated amounts.

CASH EQUIVALENTS

CASH EQUIVALENTS:    Investments with a maturity of three months or less when purchased are considered to be cash equivalents.

RESTRICTED CASH

RESTRICTED CASH:    Restricted cash balances relate to cash balances collected on behalf of customers and held in escrow. TSYS records a corresponding liability for the obligation to the customer which is reflected in other current liabilities in the accompanying consolidated balance sheets. In 2010, TSYS began shifting the responsibility for funds management for its clients to the client’s issuer bank. Therefore, client funds are no longer maintained in a TSYS bank account.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE:    Accounts receivable balances are stated net of allowances for doubtful accounts and billing adjustments of $4.1 million and $4.5 million at December 31, 2011 and December 31, 2010, respectively.

TSYS records an allowance for doubtful accounts when it is probable that the accounts receivable balance will not be collected. When estimating the allowance for doubtful accounts, the Company takes into consideration such factors as its day-to-day knowledge of the financial position of specific clients, the industry and size of its clients, the overall composition of its accounts receivable aging, prior history with specific customers of accounts receivable write-offs and prior experience of allowances in proportion to the overall receivable balance. This analysis includes an ongoing and continuous communication with its largest clients and those clients with past due balances. A financial decline of any one of the Company’s large clients could have a material adverse effect on collectability of receivables and thus the adequacy of the allowance for doubtful accounts.

Increases in the allowance for doubtful accounts are recorded as charges to bad debt expense and are reflected in selling, general and administrative expenses in the Company’s consolidated statements of income. Write-offs of uncollectible accounts are charged against the allowance for doubtful accounts.

TSYS records an allowance for billing adjustments for actual and potential billing discrepancies. When estimating the allowance for billing adjustments, the Company considers its overall history of billing adjustments, as well as its history with specific clients and known disputes. Increases in the allowance for billing adjustments are recorded as a reduction of revenues in the Company’s consolidated statements of income and actual adjustments to invoices are charged against the allowance for billing adjustments.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT:    Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over estimated useful lives of 5-40 years, computer and other equipment over estimated useful lives of 2-5 years, and furniture and other equipment over estimated useful lives of 3-15 years. The Company evaluates impairment losses on long-lived assets used in operations in accordance with the provisions of ASC 205, “Presentation of Financial Statements.”

All ordinary repairs and maintenance costs are expensed as incurred. Maintenance costs that extend the asset life are capitalized and amortized over the remaining estimated life of the asset.

LICENSED COMPUTER SOFTWARE

LICENSED COMPUTER SOFTWARE:    The Company licenses software that is used in providing services to clients. Licensed software is obtained through perpetual licenses and site licenses and through agreements based on processing capacity (called “MIPS agreements”). Perpetual and site licenses are amortized using the straight-line method over their estimated useful lives which range from three to ten years. Software licensed under MIPS agreements is amortized using a units-of-production basis over the estimated useful life of the software, generally not to exceed ten years. At each balance sheet date, the Company evaluates impairment losses on long-lived assets used in operations in accordance with ASC 205.

ACQUISITION TECHNOLOGY INTANGIBLES

ACQUISITION TECHNOLOGY INTANGIBLES:     These identifiable intangible assets are software technology assets resulting from acquisitions. These assets are amortized using the straight-line method over periods not exceeding their estimated useful lives, which range from five to nine years. The provisions of ASC 350, “Intangibles — Goodwill and Other,” require that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment in accordance with ASC 205. Acquisition technology intangibles net book values are included in computer software, net in the accompanying balance sheets. Amortization expenses are charged to cost of services in the Company’s consolidated statements of income.

SOFTWARE DEVELOPMENT COSTS

SOFTWARE DEVELOPMENT COSTS:    In accordance with the provisions of ASC 985, “Software,” software development costs are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. At each balance sheet date, the Company evaluates the unamortized capitalized costs of software development as compared to the net realizable value of the software product which is determined by future undiscounted net cash flows. The amount by which the unamortized software development costs exceed the net realizable value is written off in the period that such determination is made. Software development costs are amortized using the greater of (1) the straight-line method over its estimated useful life, which ranges from three to ten years or (2) the ratio of current revenues to total anticipated revenue over its useful life.

The Company also develops software that is used internally. These software development costs are capitalized based upon the provisions of ASC 350. Internal-use software development costs are capitalized once: (1) the preliminary project stage is completed, (2) management authorizes and commits to funding a computer software project, and (3) it is probable that the project will be completed and the software will be used to perform the function intended. Costs incurred prior to meeting the qualifications are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. Internal-use software development costs are amortized using an estimated useful life of three to five years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of the planned project becoming doubtful or due to technological obsolescence of the planned software product.

CONTRACT ACQUISITION COSTS

CONTRACT ACQUISITION COSTS:    The Company capitalizes contract acquisition costs related to signing or renewing long-term contracts. The Company capitalizes internal conversion costs in accordance with the provisions of Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition” and ASC 605, “Revenue Recognition.” The capitalization of costs related to cash payments for rights to provide processing services is capitalized in accordance with the provisions of ASC 605. All costs incurred prior to a signed agreement are expensed as incurred.

Contract acquisition costs are amortized using the straight-line method over the expected customer relationship (contract term) beginning when the client’s cardholder accounts are converted and producing revenues. The amortization of contract acquisition costs associated with cash payments for client incentives is included as a reduction of revenues in the Company’s consolidated statements of income. The amortization of contract acquisition costs associated with conversion activity is recorded as cost of services in the Company’s consolidated statements of income.

The Company evaluates the carrying value of contract acquisition costs associated with each customer for impairment on the basis of whether these costs are fully recoverable from either contractual minimum fees (contractual costs) or from expected undiscounted net operating cash flows of the related contract (cash incentives paid). The determination of expected undiscounted net operating cash flows requires management to make estimates. These costs may become impaired with the loss of a contract, the financial decline of a client, termination of conversion efforts after a contract is signed, diminished prospects for current clients or if the Company’s actual results differ from its estimates of future cash flows. The amount of the impairment is written off in the period that such a determination is made.

EQUITY INVESTMENTS

EQUITY INVESTMENTS:    TSYS’ 49% investment in Total System Services de México, S.A. de C.V. (TSYS de México), an electronic payment processing support operation located in Toluca, Mexico, is accounted for using the equity method of accounting, as is TSYS’ 44.56% investment in China UnionPay Data Co., Ltd. (CUP Data) headquartered in Shanghai, China. TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash contributions and distributions, and foreign currency translation adjustments.

GOODWILL

GOODWILL:    Goodwill results from the excess of cost over the fair value of net assets of businesses acquired.

Goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually in accordance with the provisions of ASC 350. ASC 350 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 205.

The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with the provisions of ASC 323, “Investments — Equity Method and Joint Ventures,” shall not be amortized. However, equity method goodwill shall not be reviewed for impairment in accordance with ASC 350, but instead should continue to be reviewed for impairment in accordance with paragraph 19(h) of ASC 323. Equity method goodwill, which is not reported as goodwill in the Company’s consolidated balance sheet, but is reported as a component of the equity investment, was $50.6 million at December 31, 2011.

At December 31, 2011, the Company had goodwill in the amount of $355.5 million. The Company performed its annual impairment analyses of its goodwill balance, and these tests did not indicate any impairment for the periods ended December 31, 2011, 2010 and 2009, respectively.

OTHER INTANGIBLE ASSETS

OTHER INTANGIBLE ASSETS:    Identifiable intangible assets relate primarily to customer relationships, covenants-not-to-compete, trade names and trade associations resulting from acquisitions. These identifiable intangible assets are amortized using the straight-line method over periods not exceeding the estimated useful lives, which range from three to ten years. ASC 350 requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 205. Amortization expenses are charged to selling, general and administrative expenses in the Company’s consolidated statements of income.

FAIR VALUES OF FINANCIAL INSTRUMENTS

FAIR VALUES OF FINANCIAL INSTRUMENTS:     The Company uses financial instruments in the normal course of its business. The carrying values of cash equivalents, accounts receivable, accounts payable, accrued salaries and employee benefits, and other current liabilities approximate their fair value due to the short-term maturities of these assets and liabilities. The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value.

Investments in equity investments are accounted for using the equity method of accounting and pertain to privately held companies for which fair value is not readily available. The Company believes the fair values of its investments in equity investments exceed their respective carrying values.

IMPAIRMENT OF LONG-LIVED ASSETS

IMPAIRMENT OF LONG-LIVED ASSETS:    In accordance with ASC 205, the Company reviews long-lived assets, such as property and equipment and intangibles subject to amortization, including contract acquisition costs and certain computer software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If upon a triggering event the Company determines that the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.

TRANSACTION PROCESSING PROVISIONS

TRANSACTION PROCESSING PROVISIONS:    The Company has recorded an accrual for contract contingencies (performance penalties) and processing errors. A significant number of the Company’s contracts with large clients contain service level agreements which can result in TSYS incurring performance penalties if contractually required service levels are not met. When providing for these accruals, the Company takes into consideration such factors as the prior history of performance penalties and processing errors incurred, actual contractual penalties inherent in the Company’s contracts, progress towards milestones and known processing errors not covered by insurance.

These accruals are included in other current liabilities in the accompanying consolidated balance sheets. Increases and decreases in transaction processing provisions are charged to cost of services in the Company’s consolidated statements of income, and payments or credits for performance penalties and processing errors are charged against the accrual.

REDEEMABLE NONCONTROLLING INTEREST

REDEEMABLE NONCONTROLLING INTEREST:     In connection with the 2010 acquisition of TMS, the Company was a party to call and put arrangements with respect to the membership units that represented the remaining noncontrolling interest of FNMS Holding. The call arrangement was exercisable by TSYS and the put arrangement was exercisable by FNBO. The put arrangement was outside the control of the Company by requiring the Company to purchase FNBO’s entire equity interest in FNMS Holding at a put price at fair market value. The put arrangement was recorded on the balance sheet and was classified as redeemable noncontrolling interest outside of permanent equity.

The call and put arrangements for FNMS Holding, representing 49% of its total outstanding equity interests, could have been exercised at the discretion of TSYS or FNBO on April 1, 2015, 2016 and 2017, upon the dilution of FNBO’s equity ownership in FNMS Holding below a designated threshold and in connection with certain acquisitions by TSYS or FNMS Holding in excess of designated value thresholds.

The Company bought the remaining 49% interest for $174.1 million, and paid net cash of $169.6 million ($174.1 million less $4.5 million for a trade name sold). With the purchase, the Company eliminated the redeemable noncontrolling interest of $144.6 million and adjusted the remaining balance through additional paid-in capital and deferred taxes.

NONCONTROLLING INTEREST

NONCONTROLLING INTEREST:    In December 2007, the Financial Accounting Standards Board (FASB) issued authoritative guidance under ASC 810, “Consolidation.” ASC 810 changes the accounting for noncontrolling (minority) interests in consolidated financial statements, including the requirements to classify noncontrolling interests as a component of consolidated shareholders’ equity, the elimination of “minority interest” accounting in results of operations and changes in the accounting for both increases and decreases in a parent’s controlling ownership interest.

Noncontrolling interest in earnings of subsidiaries represents the minority shareholders’ share of the net income or loss of GP Network Corporation (GP Net) and TSYS Managed Services EMEA Ltd. (TSYS Managed Services). The noncontrolling interest in the consolidated balance sheet reflects the original investment by these shareholders in GP Net and TSYS Managed Services, their proportional share of the earnings or losses and their proportional share of net gains or losses resulting from the currency translation of assets and liabilities of GP Net and TSYS Managed Services. TSYS has adopted the accounting policy to recognize gains or losses on equity transactions of a subsidiary as a capital transaction.

RESERVE FOR MERCHANT LOSSES

RESERVE FOR MERCHANT LOSSES:    The Company has potential liability for losses resulting from disputes between a cardholder and a merchant that arise as a result of, among other things, the cardholder’s dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. If the merchant is unable to fund the refund, TSYS must do so. TSYS also bears the risk of reject losses arising from the fact that TSYS collects fees from its merchants on the first day after the monthly billing period. If the merchant has gone out of business during such period, TSYS may be unable to collect such fees. TSYS maintains cash deposits or requires the pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. Most chargeback and reject losses are charged to cost of services as they are incurred. However, the Company also maintains a reserve against losses, including major fraud losses, which are both less predictable and involve larger amounts. The loss reserve was established using historical loss rates, applied to recent bankcard processing volume. At December 31, 2011, the Company had a merchant loss reserve in the amount of $397,000.

FOREIGN CURRENCY TRANSLATION

FOREIGN CURRENCY TRANSLATION:    The Company maintains several different foreign operations whose functional currency is their local currency. Foreign currency financial statements of the Company’s Mexican and Chinese equity investments, the Company’s wholly owned subsidiaries and the Company’s majority owned subsidiaries, as well as the Company’s division and branches in the United Kingdom and China, are translated into U.S. dollars at current exchange rates, except for revenues, costs and expenses, and net income which are translated at the average exchange rates for each reporting period. Net gains or losses resulting from the currency translation of assets and liabilities of the Company’s foreign operations, net of tax when applicable, are accumulated in a separate section of shareholders’ equity titled accumulated other comprehensive income (loss). Gains and losses on transactions denominated in currencies other than the functional currencies are included in determining net income for the period in which exchange rates change.

COMPREHENSIVE INCOME

COMPREHENSIVE INCOME:    The provisions of ASC 220, “Comprehensive Income,” require companies to display, with the same prominence as other financial statements, the components of comprehensive income (loss). TSYS displays the items of other comprehensive income (loss) in its consolidated statements of equity and comprehensive income.

TREASURY STOCK

TREASURY STOCK:    The Company uses the cost method when it purchases its own common stock as treasury shares or issues treasury stock upon option exercises and displays treasury stock as a reduction of shareholders’ equity.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES:    ASC 815, “Derivatives and Hedging” requires that all derivative instruments be recorded on the balance sheet at their respective fair values. The Company did not have any outstanding derivative instruments or hedging transactions at December 31, 2011.

REVENUE RECOGNITION

REVENUE RECOGNITION:    The Company’s North America and International Services revenues are derived from long-term processing contracts with financial and nonfinancial institutions and are generally recognized as the services are performed. Payment processing services revenues are generated primarily from charges based on the number of accounts on file, transactions and authorizations processed, statements mailed, cards embossed and mailed and other processing services for cardholder accounts on file. Most of these contracts have prescribed annual revenue minimums. Processing contracts generally range from three to ten years in length and provide for penalties for early termination.

The Company’s merchant services revenues are derived from long-term processing contracts with large financial institutions and other merchant acquirers which generally range from three to eight years and provide for penalties for early termination. Merchant services revenues are generated primarily from processing all payment forms including credit, debit, electronic benefits transfer and check truncation for merchants of all sizes across a wide array of retail market segments. The products and services offered include authorization and capture of electronic transactions, clearing and settlement of electronic transactions, information reporting services related to electronic transactions, merchant billing services, and point-of-sale terminal sales and services. Revenue is recognized for merchant services as those services are performed, primarily on a per unit basis. Revenues on point-of-sale terminal equipment are recognized upon the transfer of ownership and shipment of product.

The Company recognizes revenues in accordance with the provisions of SAB No. 104. SAB No. 104 sets forth guidance as to when revenue is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured.

The Company evaluates its contractual arrangements that provide services to clients through a bundled sales arrangement in accordance with the provisions of ASC 605. ASC 605 addresses the determination of whether an arrangement involving more than one deliverable contains more than one unit of accounting and how the arrangement consideration should be measured and allocated to the separate units of accounting.

A deliverable in multiple element arrangements indicates any performance obligation on the part of the seller and includes any combination of obligations to perform different services, grant licenses or other rights. Revenue is allocated to the separate units of accounting in a multiple element arrangement based on relative fair values, provided the delivered element has standalone value to the customer and delivery of any undelivered items is probable and substantially within the Company’s control. Evidence of fair value must be objective and reliable. An item has value to the customer on a standalone basis if it is sold separately by any vendor or the customer could resell the deliverable on a standalone basis.

In regards to taxes assessed by a governmental authority imposed directly on a revenue producing transaction, the Company reports its revenues on a net basis.

REIMBURSABLE ITEMS

REIMBURSABLE ITEMS:    Reimbursable items consist of out-of-pocket expenses which are reimbursed by the Company’s clients. These expenses consist primarily of postage, access fees and third party software. The Company accounts for reimbursable items in accordance with the provisions of ASC 605.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION:    In December 2004, the FASB issued authoritative guidance under ASC 718, “Compensation — Stock Compensation.” ASC 718 establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. This Statement requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award.

ASC 718 is effective for all awards granted on or after January 1, 2006, and to awards modified, repurchased or cancelled after that date. ASC 718 requires the Company to recognize compensation costs for the nonvested portion of outstanding share-based compensation granted in the form of stock options based on the grant-date fair value of those awards calculated under the provisions of ASC 718, for pro forma disclosures. Share-based compensation expenses include the impact of expensing the fair value of stock options, as well as expenses associated with nonvested shares. TSYS adopted the provisions of ASC 718 effective January 1, 2006 using the modified-prospective-transition method.

ASC 718 requires companies to estimate forfeitures when recognizing compensation cost. The estimate of forfeitures will be adjusted by the Company as actual forfeitures differ from its estimates, resulting in compensation cost only for those awards that actually vest. The effect of the change in estimated forfeitures is recognized as compensation costs in the period the change in estimate occurred. In estimating its forfeiture rate, the Company stratified its data based upon historical experience to determine separate forfeiture rates for the different award grants. The Company currently estimates a forfeiture rate for existing stock option grants to TSYS non-executive employees, and a forfeiture rate for other TSYS share-based awards. Currently, TSYS estimates a forfeiture rate in the range of 0% to 10.0%.

The Company has issued its common stock to directors and to certain employees under nonvested awards. The market value of the common stock at the date of issuance is recognized as compensation expense over the vesting period of the awards. For nonvested award grants that have pro rata vesting, the Company recognizes compensation expense using the straight-line method over the vesting period of the award.

LEASES

LEASES:    The Company is obligated under noncancelable leases for computer equipment and facilities. As these leases expire, they will be evaluated and renewed or replaced by similar leases based on need. A lease is an agreement conveying the right to use property, plant, or equipment (land and/or depreciable assets) usually for a stated period of time. For purposes of applying the accounting and reporting standards, leases are classified from the standpoint of the lessee as capital or operating leases. The provisions of ASC 840, “Leases,” establish standards of financial accounting and reporting for leases by lessees and lessors. If at inception a lease meets one or more of the following four criteria, the lease shall be classified as a capital lease by the lessee: (a) the lease transfers ownership of the property to the lessee by the end of the lease term; (b) the lease contains a bargain purchase option; (c) the lease term is equal to 75% or more of the estimated economic life of the leased property; and (d) the present value at the beginning of the lease term of the minimum lease payments equals or exceeds 90% of the fair value of the leased property. If the lease does not meet one or more of the criteria, it shall be classified as an operating lease.

Rental payments on operating leases are charged to expense over the lease term. If rental payments are not made on a straight-line basis, rental expense nevertheless shall be recognized on a straight-line basis unless another systematic and rational basis is more representative of the time pattern in which use benefit is derived from the leased property, in which case that basis shall be used.

Certain of the Company’s operating leases are for office space. The Company will make various alterations (leasehold improvements) to the office space and capitalize these costs as part of property and equipment. Leasehold improvements are amortized on a straight-line basis over the useful life of the improvement or the term of the lease, whichever is shorter.

ADVERTISING

ADVERTISING:    Advertising costs, consisting mainly of advertising in trade publications, are expensed as incurred or the first time the advertising takes place. Advertising expense for 2011, 2010 and 2009 was $813,000, $690,000 and $327,000, respectively.

INCOME TAXES

INCOME TAXES:    Income taxes reflected in TSYS’ consolidated financial statements are computed based on the taxable income of TSYS and its affiliated subsidiaries. A consolidated U.S. federal income tax return is filed for TSYS and its majority owned U.S. subsidiaries through the year ended December 31, 2011. Income tax returns are also filed in foreign jurisdictions where TSYS has a foreign affiliate.

The Company accounts for income taxes in accordance with the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Reserves against the carrying value of a deferred tax asset are established when necessary to reflect the decreased likelihood of realization of a deferred asset in the future. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Income tax provisions require the use of management judgments, which are subject to challenge by various taxing authorities. Contingency reserves are periodically established where the amount of the contingency can be reasonably determined and is likely to occur. Reductions in contingency reserves are recognized when tax disputes are settled or examination periods lapse.

Significant estimates used in accounting for income taxes relate to the determination of taxable income, the determination of temporary differences between book and tax bases, as well as estimates on the realizability of tax credits and net operating losses.

TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the consolidated statements of income.

TSYS adopted the authoritative guidance under ASC 740, “Income Taxes,” on January 1, 2007. This interpretation prescribed a recognition threshold and measurement attribute for the financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken in a tax return.

EARNINGS PER SHARE

EARNINGS PER SHARE:    In June 2008, the FASB issued authoritative guidance under ASC 260, “Earnings Per Share.” The guidance under ASC 260 holds that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are “participating securities” as defined in ASC 260, and therefore should be included in computing earnings per share (EPS) using the two-class method.

The two-class method is an earnings allocation method for computing EPS when an entity’s capital structure includes two or more classes of common stock or common stock and participating securities. It determines EPS based on dividends declared on common stock and participating securities and participation rights of participating securities in any undistributed earnings. The guidance under ASC 260 was effective for reporting periods beginning after December 15, 2008.

Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised. Diluted EPS is calculated by dividing net income by weighted average common and common equivalent shares outstanding. Common equivalent shares are calculated using the treasury stock method.

RECLASSIFICATIONS

RECLASSIFICATIONS:    Certain reclassifications have been made to the 2010 and 2009 financial statements to conform to the presentation adopted in 2011.

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2011

Contributions Charged to Expense

The Company’s contributions to the plans charged to expense for the years ended December 31 are as follows:

(in thousands)	2011		2010		2009
TSYS Retirement Savings Plan	$	15,951		15,430		—
Money Purchase Plan		—		—		19,307
401(k) Plan		—		—		306

Stock Repurchase Plan

Contributions Charged to Expense

The Director Stock Purchase Plan was terminated on November 30, 2011. The Company’s contributions to these plans charged to expense for the years ended December 31 are as follows:

(in thousands)
2011	$	1,177
2010		1,260
2009		3,764

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Other Current Liabilities

12 Months Ended

Dec. 31, 2011

Other Current Liabilities

NOTE 14 Other Current Liabilities

Significant components of other current liabilities at December 31 are summarized as follows:

(in thousands)	2011		2010
Accrued expenses	$	40,141		29,999
Deferred revenues		29,707		34,184
Dividends payable		18,913		13,634
Accrued income taxes		5,731		2,920
Transaction processing provisions		5,382		5,221
Client postage deposits		3,562		3,708
Other		22,427		21,374
Total	$	125,863		111,040

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Contributions Charged to Expense (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 TSYS Retirement Savings Plan	Dec. 31, 2010 TSYS Retirement Savings Plan	Dec. 31, 2009 Money Purchase Pan	Dec. 31, 2009 401(k) Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions charged to expense	$ 15,951	$ 15,430	$ 19,307	$ 306

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies

NOTE 19 Commitments and Contingencies

LEASE COMMITMENTS:    TSYS is obligated under noncancelable operating leases for computer equipment and facilities.

The future minimum lease payments under noncancelable operating leases with remaining terms greater than one year for the next five years and thereafter and in the aggregate as of December 31, 2011, are as follows:

(in thousands)
2012	$	86,882
2013		78,946
2014		35,061
2015		9,328
2016		7,257
Thereafter		23,327
Total future minimum lease payments	$	240,801

The majority of computer equipment lease commitments come with a renewal option or an option to terminate the lease. These lease commitments may be replaced with new leases which allow the Company to continually update its computer equipment. Total rental expense under all operating leases in 2011, 2010 and 2009 was $97.5 million, $102.1 million and $105.4 million, respectively. Total rental expense under sublease arrangements in 2010 and 2009 was $675,000 and $720,000, respectively. The rental income under sublease arrangements in 2010 and 2009 was $809,000 and $863,000, respectively.

CONTRACTUAL COMMITMENTS:    In the normal course of its business, the Company maintains long-term processing contracts with its clients. These processing contracts contain commitments, including, but not limited to, minimum standards and time frames against which the Company’s performance is measured. In the event the Company does not meet its contractual commitments with its clients, the Company may incur penalties and certain clients may have the right to terminate their contracts with the Company. The Company does not believe that it will fail to meet its contractual commitments to an extent that will result in a material adverse effect on its financial position, results of operations or cash flows.

CONTINGENCIES:    The Company is subject to various legal proceedings and claims and is also subject to information requests, inquiries and investigations arising out of the ordinary conduct of its business. The Company establishes reserves for litigation and similar matters when those matters present loss contingencies that TSYS determines to be both probable and reasonably estimable in accordance with ASC 450, “Contingencies.” In the opinion of management, based on current knowledge and in part upon the advise of legal counsel, all matters are believed to be adequately covered by insurance, or, if not covered, the possibility of losses from such matters are believed to be remote or such matters are of such kind or involve such amounts that would not have a material adverse effect on the financial position, results of operations or cash flows of the Company if disposed of unfavorably.

GUARANTEES AND INDEMNIFICATIONS:    The Company has entered into processing and licensing agreements with its clients that include intellectual property indemnification clauses. Under these clauses, the Company generally agrees to indemnify its clients, subject to certain exceptions, against legal claims that TSYS’ services or systems infringe on certain third party patents, copyrights or other proprietary rights. In the event of such a claim, the Company is generally obligated to hold the client harmless and pay for related losses, liabilities, costs and expenses, including, without limitation, court costs and reasonable attorney’s fees. The Company has not made any indemnification payments pursuant to these indemnification clauses.

The Company has not recorded a liability for guarantees or indemnities in the accompanying consolidated balance sheet since the maximum amount of potential future payments under such guarantees and indemnities is not determinable

PRIVATE EQUITY INVESTMENTS: On May 31, 2011, the Company entered into a limited partnership agreement in connection with its agreement to invest in an Atlanta-based venture capital fund focused exclusively on investing in technology-enabled financial services companies. Pursuant to the limited partnership agreement, the Company has committed to invest up to $20 million in the fund so long as its ownership interest in the fund does not exceed 50%. At December 31, 2011, the Company had made investments in the fund of $1.6 million.

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Summary of Number of Shares Granted Each Year (Detail) (Non vested Restricted Awards, USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Non vested Restricted Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares	206,040	197,186	513,920
Market value	$ 3.6	$ 3.1	$ 6.8

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2011

Future Minimum Lease Payments Under Noncancelable Operating Leases

The future minimum lease payments under noncancelable operating leases with remaining terms greater than one year for the next five years and thereafter and in the aggregate as of December 31, 2011, are as follows:

(in thousands)
2012	$	86,882
2013		78,946
2014		35,061
2015		9,328
2016		7,257
Thereafter		23,327
Total future minimum lease payments	$	240,801

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Income Tax Effects Allocated to and the Cumulative Balance of Accumulated Other Comprehensive Income (loss) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (2,585)	$ 5,673	$ (6,627)	$ 28,322
Pretax amount	5,397	(9,747)	14,375	(43,121)
Tax effect	3,257	(1,489)	2,075	(8,172)
Net-of-Tax Amount	2,140	(8,258)	12,300	(34,949)
Ending Balance	(445)	(2,585)	5,673	(6,627)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(1,242)	6,287	(5,858)
Pretax amount	3,718	(8,609)	14,140
Tax effect	2,662	(1,080)	1,995
Net-of-Tax Amount	1,056	(7,529)	12,145
Ending Balance	(186)	(1,242)	6,287
Change in Accumulated OCI Related to Postretirement Healthcare Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(1,343)	(614)	(769)
Pretax amount	1,651	(1,138)	235
Tax effect	595	(409)	80
Net-of-Tax Amount	1,056	(729)	155
Ending Balance	(287)	(1,343)	(614)
Noncontrolling Interests
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pretax amount	28
Net-of-Tax Amount	28
Ending Balance	$ 28

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Goodwill (Tables)

12 Months Ended

Dec. 31, 2011

Gross Amount and Accumulated Impairment Loss of Goodwill

The gross amount and accumulated impairment loss of goodwill at December 31, 2011 and 2010 is as follows:

	2011
	North America Services		International Services		Merchant Services			Consolidated
Gross amount	$	70,614		33,369		253,740		$	357,723
Accumulated impairment losses		—		—		(2,225	)		(2,225	)
Goodwill, net	$	70,614		33,369		251,515		$	355,498

	2010
	North America Services		International Services		Merchant Services			Consolidated
Gross amount	$	70,614		33,188		218,822		$	322,624
Accumulated impairment losses		—		—		(2,225	)		(2,225	)
Goodwill, net	$	70,614		33,188		216,597		$	320,399

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill at December 31, 2011 and 2010 are as follows:

(in thousands)	North America Services		International Services			Merchant Services		Consolidated
Balance as of December 31, 2009	$	70,614		34,181			61,101	$	165,896
TMS purchase price allocation		—		—			155,496		155,496
Currency translation adjustments		—		(993	)		—		(993	)
Balance as of December 31, 2010		70,614		33,188			216,597		320,399
TermNet purchase price allocation		—		—			28,918		28,918
Infonox additional purchase consideration		—		—			6,000		6,000
Currency translation adjustments		—		181			—		181
Balance as of December 31, 2011	$	70,614		33,369			251,515	$	355,498

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Commitments and Contingencies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 29, 2011	Dec. 31, 2011 Private Equity Funds	May 31, 2011 Private Equity Funds Maximum
Commitments and Contingencies Disclosure [Line Items]
Rental expense under all operating leases	$ 97,500,000	$ 102,100,000	$ 105,400,000
Rental expense under sublease arrangements		675,000	720,000
Rental income under sublease arrangements		809,000	863,000
Commitment to invest						20,000,000
Percentage of ownership interests				53.00%		50.00%
Investments					$ 1,600,000

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash flows from operating activities:
Net income	$ 222,662	$ 205,621	$ 219,176
Adjustments to reconcile net income to net cash provided by operating activities:
Net loss on foreign currency translation	3,091	162	2,607
Equity in income of equity investments, net of tax	(8,708)	(7,142)	(6,985)
Dividends received from equity investments	6,835	6,572	4,942
Share-based compensation	16,477	15,832	16,128
Excess tax expense (benefit) from share-based payment arrangements	523	(111)	(6)
Depreciation and amortization	169,165	163,111	156,471
Amortization of debt issuance costs	160	154	154
Asset impairments	799
Provisions for (recoveries of ) bad debt expenses and billing adjustments	1,552	(798)	6,381
Charges for transaction processing provisions	4,750	3,891	6,556
Deferred income tax expense (benefit)	1,491	(4,388)	(3,864)
(Gain) loss on disposal of equipment, net	(1,159)	145	375
Loss on disposal of subsidiary		1,591	5,713
Changes in operating assets and liabilities:
Accounts receivable	(7,044)	(7,138)	10,807
Prepaid expenses, other current assets and other assets	23,099	(1,495)	27,893
Accounts payable	(15,512)	13,916	(11,883)
Accrued salaries and employee benefits	4,492	(21,965)	(11,697)
Other current liabilities and other liabilities	13,646	21,202	369
Net cash provided by operating activities	436,319	389,160	423,137
Cash flows from investing activities:
Purchases of property and equipment, net	(26,938)	(46,547)	(34,017)
Additions to licensed computer software from vendors	(19,502)	(69,826)	(20,059)
Additions to internally developed computer software	(17,882)	(25,466)	(31,445)
Proceeds from sale of trade name	4,500
Proceeds from disposition, net of expenses paid and cash disposed		4,265	1,979
Cash used in acquisitions and equity investments, net of cash acquired	(47,909)	(148,531)	(294)
Purchase of private equity investments	(1,573)
Dividends received from equity investments as return of capital		68
Subsidiary repurchase of noncontrolling interest	(493)
Additions to contract acquisition costs	(31,623)	(75,669)	(35,596)
Net cash used in investing activities	(141,420)	(361,706)	(119,432)
Cash flows from financing activities:
Purchase of noncontrolling interest	(174,050)
Repurchases of common stock	(121,271)	(46,228)	(328)
Dividends paid on common stock	(53,949)	(55,087)	(55,208)
Principal payments on long-term debt borrowings and capital lease obligations	(28,892)	(11,741)	(18,869)
Subsidiary dividends paid to noncontrolling shareholders	(433)	(9,031)	(235)
Excess tax expense (benefit) from share-based payment arrangements	(523)	111	6
Proceeds from borrowings of long-term debt		39,757	5,334
Proceeds from exercise of stock options	8,065	543	2
Net cash used in financing activities	(371,053)	(81,676)	(69,298)
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents	(2,304)	(938)	(4,470)
Net increase (decrease) in cash and cash equivalents	(78,458)	(55,160)	229,937
Cash and cash equivalents at beginning of year	394,795	449,955	220,018
Cash and cash equivalents at end of year	316,337	394,795	449,955
Supplemental cash flow information:
Cash paid for interest	3,088	2,191	3,368
Cash paid for income taxes, net of refunds	$ 82,084	$ 122,173	$ 104,004

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Future Minimum Lease Payments under Capital Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Schedule of Capital Lease Obligations [Line Items]
2012	$ 13,861
2013	12,393
2014	11,910
2015	1,607
2016	302
Total minimum lease payments	40,073
Less amount representing interest	1,221
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Total	$ 38,852

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Fair Value Measurement

12 Months Ended

Dec. 31, 2011

Fair Value Measurement

NOTE 3 Fair Value Measurement

ASC 820, “Fair Value Measurements and Disclosure,” requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant level of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows:

Level 1 — Quoted prices for identical assets and liabilities in active markets.

Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Unobservable inputs for the asset or liability.

Goodwill and certain intangible assets not subject to amortization are assessed annually for impairment in the second quarter of each year using fair value measurement techniques. Specifically, goodwill impairment is determined using a two-step test. The first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit (RU) with its book value, including goodwill. If the fair value of the RU exceeds its book value, goodwill is considered not impaired and the second step of the impairment test is unnecessary. If the book value of the RU exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the RU’s goodwill with the book value of that goodwill. If the book value of the RU’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The fair value of the RU is allocated to all of the assets and liabilities of that unit as if the RU had been acquired in a business combination and the fair value of the RU was the purchase price paid to acquire the RU.

The estimate of fair value of the Company’s RUs is determined using various valuation techniques, including using an equally weighted combination of the market approach and the income approach. The market approach, which contains Level 2 inputs, utilizes readily available market valuation multiples to estimate fair value. The income approach is a valuation technique that utilizes the discounted cash flow (DCF) method, which includes Level 3 inputs. Under the DCF method, the fair value of the RU reflects the present value of the projected earnings that will be generated by each RU after taking into account the revenues and expenses associated with the asset, the relative risk that the cash flows will occur, the contribution of other assets, and an appropriate discount rate to reflect the value of the invested capital. Cash flows are estimated for future periods based upon historical data and projections by management.

At December 31, 2011, the Company had recorded goodwill in the amount of $355.5 million. The Company performed its annual impairment tests of its unamortized goodwill balance as of May 31, 2011, and these tests did not indicate any impairment. The fair value of the RUs substantially exceeds the carrying value.

The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different from its carrying value.

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Fair Value Measurement - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill	$ 355,498	$ 320,399	$ 165,896

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Estimated Future Amortization Expense on Other Intangible Assets (Detail) (Other intangible assets, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
2012	$ 14,145
2013	12,848
2014	12,575
2015	11,896
2016	$ 11,766

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Future Minimum Lease Payments Under Noncancelable Operating Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Operating Leased Assets [Line Items]
2012	$ 86,882
2013	78,946
2014	35,061
2015	9,328
2016	7,257
Thereafter	23,327
Total future minimum lease payments	$ 240,801

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Estimated Future Amortization Expense of Licensed Computer Software, Software Development Costs and Acquisition Technology Intangibles (Detail) (Computer Software, Intangible Asset, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Licensed computer software
Finite-Lived Intangible Assets [Line Items]
2012	$ 38,573
2013	30,891
2014	22,125
2015	15,287
2016	6,349
Software development costs
Finite-Lived Intangible Assets [Line Items]
2012	38,456
2013	14,968
2014	11,135
2015	7,302
2016	1,892
Acquisition technology intangibles
Finite-Lived Intangible Assets [Line Items]
2012	9,319
2013	7,665
2014	5,873
2015	2,828
2016	$ 1,359

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Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes

NOTE 20 Income Taxes

The provision for income taxes includes income taxes currently payable and those deferred because of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities.

The components of income tax expense included in the consolidated statements of income were as follows:

	Years Ended December 31,
(in thousands)	2011			2010			2009
Current income tax expense:
Federal	$	83,518			98,802		$	115,301
State		4,666			4,221			4,311
Foreign		12,922			8,682			6,185
Total current income tax expense		101,106			111,705			125,797
Deferred income tax expense (benefit):
Federal		3,126			(2,970	)		(4,210	)
State		61			(643	)		947
Foreign		(1,696	)		(2,004	)		(684	)
Total deferred income tax expense (benefit)		1,491			(5,617	)		(3,947	)
Total income tax expense	$	102,597			106,088		$	121,850

	Years Ended December 31,
(in thousands)	2011		2010		2009
Components of income before income tax expense :
Domestic	$	296,475		282,492	$	300,388
Foreign		20,076		25,320		40,197
Total income before income tax expense	$	316,551		307,812	$	340,585

Income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate of 35% to income before income taxes, noncontrolling interest and equity in income of equity investments as a result of the following:

	Years Ended December 31,
(in thousands)	2011			2010			2009
Computed “expected” income tax expense	$	110,793			107,734			119,205
Increase (decrease) in income tax expense resulting from:
International tax rate differential		1,831			(4,376	)		1,075
State income tax expense (benefit), net of federal income tax effect		3,164			2,326			3,418
Increase (decrease) in valuation allowance		3,773			2,564			(6,159	)
Tax credits		(9,044	)		(2,824	)		(4,299	)
Federal income tax expense resulting from ASC 740 Election		—			—			9,844
Deduction for domestic production activities		(5,524	)		—			—
Permanent differences and other, net		(2,396	)		664			(1,234	)
Total income tax expense	$	102,597			106,088			121,850

Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability at December 31, 2011 and 2010 relate to the following:

	At December 31,
(in thousands)	2011			2010
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$	25,937			19,884
Allowances for doubtful accounts and billing adjustments		1,113			1,304
Deferred revenue		19,031			16,244
Purchase accounting adjustments		15,889			—
Other, net		37,123			33,980
Total deferred income tax assets		99,093			71,412
Less valuation allowance for deferred income tax assets		(19,207	)		(15,434	)
Net deferred income tax assets		79,886			55,978
Deferred income tax liabilities:
Excess tax over financial statement depreciation		(42,351	)		(35,878	)
Computer software development costs		(40,339	)		(38,797	)
Purchase accounting adjustments		—			(1,438	)
Foreign currency translation		(6,432	)		(3,771	)
Other, net		(6,712	)		(4,847	)
Total deferred income tax liabilities		(95,834	)		(84,731	)
Net deferred income tax liabilities	$	(15,948	)		(28,753	)
Total net deferred tax assets (liabilities):
Current	$	12,872			11,090
Noncurrent		(28,820	)		(39,843	)
Net deferred income tax liability	$	(15,948	)		(28,753	)

As of December 31, 2011, TSYS had recognized deferred tax assets from net operating losses, capital losses and federal and state income tax credit carryforwards of $15.5 million, $1.9 million and $8.5 million, respectively. As of December 31, 2010, TSYS had recognized deferred tax assets from net operating losses, capital losses and federal and state income tax credit carry forwards of $15.3 million, $2.1 million and $2.5 million, respectively. The credits will begin to expire in the year 2012. The net operating losses will begin to expire in the year 2012.

In assessing the realizability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

Management believes it is more likely than not that TSYS will realize the benefits of these deductible differences, net of existing valuation allowances. The valuation allowance for deferred tax assets was $19.2 million and $15.4 million at December 31, 2011 and 2010, respectively. The increase in the valuation allowance for deferred income tax assets was $3.8 million for 2011. The increase in the valuation allowance for deferred income tax assets was $2.6 million for 2010. The increase relates to foreign losses and state tax credits, which, more likely than not, will not be realized in later years.

TSYS has adopted the permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain foreign subsidiaries. As a result, TSYS considers foreign earnings related to these foreign operations to be permanently reinvested. No provision for U.S. federal and state incomes taxes has been made in our consolidated financial statements for those non-U.S. subsidiaries whose earnings are considered to be reinvested. The amount of undistributed earnings considered to be “reinvested” which may be subject to tax upon distribution was approximately $51.2 million at December 31, 2011. Although TSYS does not intend to repatriate these earnings, a distribution of these non-U.S. earnings in the form of dividends, or otherwise, would subject the Company to both U.S. federal and state income taxes, as adjusted for non-U.S. tax credits, and withholding taxes payable to the various non-U.S. countries. Determination of the amount of any unrecognized deferred income tax liability on these undistributed earnings is not practicable.

TSYS is the parent of an affiliated group that files a consolidated U.S. federal income tax return and most state and foreign income tax returns on a separate entity basis. In the normal course of business, the Company is subject to examinations by these taxing authorities unless statutory examination periods lapse. TSYS is no longer subject to U.S. federal income tax examinations for years before 2008 and with few exceptions, the Company is no longer subject to income tax examinations from state and local or foreign tax authorities for years before 2005. There are currently no federal or foreign tax examinations in progress. However, a number of tax examinations are in progress by the relevant state tax authorities. Although TSYS is unable to determine the ultimate outcome of these examinations, TSYS believes that its liability for uncertain tax positions relating to these jurisdictions for such years is adequate.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows ⁽¹⁾:

(in millions)	Year Ended December 31, 2011
Beginning balance	$	4.5
Current activity:
Additions based on tax positions related to current year		1.4
Additions for tax positions of prior years		1.4
Reductions for tax positions of prior years		(1.6	)
Settlements		—
Net, current activity		1.2
Ending balance	$	5.7

(1) Unrecognized state tax benefits are not adjusted for the federal tax impact.

TSYS recognizes potential interest and penalties related to the underpayment of income taxes as income tax expense in the consolidated statements of income. Gross accrued interest and penalties on unrecognized tax benefits totaled $0.6 million and $1.1 million as of December 31, 2011 and December 31, 2010, respectively. The total amounts of unrecognized income tax benefits as of December 31, 2011 and December 31, 2010 that, if recognized, would affect the effective tax rates are $5.4 million and $4.2 million (net of the federal benefit on state tax issues), respectively, which includes interest and penalties of $0.5 million and $1.0 million, respectively.

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Operating Segments (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Segment Reporting Information [Line Items]
Revenues before reimbursable items	$ 1,540,698	$ 1,442,436	$ 1,407,305
Revenue for reportable segment	1,808,966	1,717,577	1,677,483
Depreciation and amortization	169,165	162,927	155,648
Operating income	322,456	309,429	344,026
Total assets	1,858,392	1,952,261	1,710,954
North America Services
Segment Reporting Information [Line Items]
Revenues before reimbursable items	809,069	809,012	880,668
Revenue for reportable segment	954,550	956,546	1,048,932
Depreciation and amortization	78,155	78,834	84,577
Operating income	253,844	244,989	285,409
Total assets	1,621,664	1,632,882	1,535,129
International Services
Segment Reporting Information [Line Items]
Revenues before reimbursable items	380,129	321,846	322,697
Revenue for reportable segment	394,831	334,954	337,757
Depreciation and amortization	51,888	40,792	34,791
Operating income	41,408	42,689	57,654
Total assets	433,203	408,880	379,606
Merchant services
Segment Reporting Information [Line Items]
Revenues before reimbursable items	373,159	337,178	232,262
Revenue for reportable segment	487,997	458,921	327,055
Depreciation and amortization	36,124	40,298	32,590
Operating income	112,986	102,444	71,437
Total assets	487,858	460,750	215,855
Intersegment Elimination
Segment Reporting Information [Line Items]
Revenues before reimbursable items	(21,659)	(25,600)	(28,322)
Revenue for reportable segment	(28,412)	(32,844)	(36,261)
Total assets	(684,333)	(550,251)	(419,636)
Corporate Administration
Segment Reporting Information [Line Items]
Depreciation and amortization	2,998	3,003	3,690
Operating income	$ (85,782)	$ (80,693)	$ (70,474)

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Earning Per Share - Additional Information (Detail) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Earnings Per Share Disclosure [Line Items]
Convertible stock options and nonvested awards excluded from diluted EPS calculation	3.6	9.0	7.0

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Consideration Paid for TMS and the Amounts of the Assets Acquired and Liabilities Assumed (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Mar. 31, 2010 TSYS Merchant Solutions	Mar. 31, 2010 TSYS Merchant Solutions Software
Consideration:
Cash				$ 150,450
Equity instruments
Contingent consideration arrangement
Fair value of total consideration transferred				150,450
Fair value of TSYS' equity interest in TMS held before the business combination
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination, Total				150,450
Acquisition-related costs (included in selling, general, and administrative expenses in TSYS' income statement for the twelve months ended December 31, 2010)				4,130
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash				1,919
Property and equipment				1,788
Identifiable intangible assets				100,800	243
Other assets				1,204
Financial liabilities
Liability arising from a contingency
Total identifiable net assets				105,954
Noncontrolling interest in TMS				(111,000)
Goodwill	355,498	320,399	165,896	155,496
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest, Total				$ 150,450

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Goodwill - Additional Information (Detail) (USD $)	12 Months Ended					3 Months Ended
	Dec. 31, 2011	May 02, 2011 TermNet	Dec. 31, 2010 TSYS Merchant Solutions	Apr. 30, 2010 TSYS Merchant Solutions	Mar. 31, 2010 TSYS Merchant Solutions	Sep. 30, 2010 TSYS POS Systems and Services LLC
Goodwill [Line Items]
Business acquisition, cash paid		$ 42,000,000			$ 150,450,000
Business acquisition, goodwill		28,918,000
Payment of contingent merger consideration in connection with the purchase of Infonox	6,000,000
Business acquisition, percentage of ownership			49.00%	51.00%
Business acquisition, cost of acquired entity, purchase price			174,100,000	150,500,000
Percentage acquisition of business			49.00%
Business acquisition, purchase price allocation, goodwill, expected tax deductible amount				155,500,000
Pre-tax goodwill impairment						2,200,000
After-tax goodwill impairment						$ 1,500,000

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Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2011

Significant Components of Prepaid Expenses and Other Current Assets

Significant components of prepaid expenses and other current assets at December 31 are summarized as follows:

(in thousands)	2011		2010
Prepaid expenses	$	20,917		15,421
Supplies inventory		10,053		7,138
Income taxes receivable		126		12,977
Other		41,335		42,312
Total	$	72,431		77,848

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Long-term Debt and Capital Lease Obligations

12 Months Ended

Dec. 31, 2011

Long-term Debt and Capital Lease Obligations

NOTE 13 Long-term Debt and Capital Lease Obligations

In December 2010, the Company obtained a $39.8 million note payable from a third-party vendor related to financing the purchase of distributed systems software.

On December 21, 2007, the Company entered into a Credit Agreement with Bank of America N.A., as Administrative Agent, The Royal Bank of Scotland plc, as Syndication Agent, and the other lenders. The Credit Agreement provides for a $168 million unsecured five year term loan to the Company and a $252 million five year unsecured revolving credit facility. The principal balance of loans outstanding under the credit facility bears interest at a rate of the London Interbank Offered Rate (LIBOR) plus an applicable margin of 0.60%. The applicable margin could vary within a range from 0.27% to 0.725% depending on changes in the Company’s corporate credit rating which is currently a “BBB” investment grade rating from Standard and Poors. Interest is paid on the last date of each interest period; however, if the period exceeds three months, interest is paid every three months after the beginning of such interest period. In addition, the Company is to pay each lender a fee in respect of the amount of such lender’s commitment under the revolving credit facility (regardless of usage), ranging from 0.08% to 0.15% (currently 0.10%) depending on the Company’s corporate credit rating.

The Company is not required to make any scheduled principal payments other than payment of the entire outstanding balance on December 21, 2012. The Company may prepay the revolving credit facility and the term loan in whole or in part at any time without premium or penalty, subject to reimbursement of the lenders’ customary breakage and redeployment costs in the case of prepayment of LIBOR borrowings. The Credit Agreement includes covenants requiring the Company to maintain certain minimum financial ratios. The Company did not use the revolving credit facility in 2011, 2010 or 2009.

The proceeds will be used for working capital and other corporate purposes, including financing the repurchase by TSYS of its capital stock.

On October 30, 2008, the Company’s International Services segment obtained a credit agreement from a third-party to borrow up to approximately ¥2.0 billion, or $21 million, in a Yen-denominated three-year loan to finance activities in Japan. The rate is LIBOR plus 80 basis points. The Company initially made a draw of ¥1.5 billion, or approximately $15.1 million. In January 2009, the Company made an additional draw down of ¥250 million, or approximately $2.8 million. In April 2009, the Company made an additional draw down of ¥250 million, or approximately $2.5 million. On December 30, 2011, the Company modified its loan to extend the maturity date to November 5, 2014.

In connection with the formation of TSYS Managed Services, TSYS and Merchants, a customer-contact company and a wholly owned subsidiary of Dimension Data, agreed to provide long-term financing to TSYS Managed Services. In November 2011, the Company repaid the TSYS Managed Services loan of £504,000, or approximately $788,000.

In addition, TSYS maintains an unsecured credit agreement with CB&T. The credit agreement has a maximum available principal balance of $5.0 million, with interest at prime. TSYS did not use the credit facility during 2011, 2010 or 2009.

Long-term debt at December 31 consists of:

(in thousands)	2011		2010
LIBOR + 0.60%, unsecured term loan, due December 21, 2012, with principal to be paid at maturity	$	168,000		168,000
1.50% note payable, due December 31, 2013, with monthly interest and principal payments		26,703		39,758
LIBOR + 0.80%, unsecured term loan, due November 5, 2014, with principal paid at maturity		25,652		23,937
3.95% note payable, due March 1, 2011, with monthly interest and principal payments		—		1,790
LIBOR + 2.00%, unsecured term loan, due November 16, 2011, with quarterly interest payments and principal to be paid at maturity		—		775
Total debt		220,355		234,260
Less current portion		181,251		39,557
Noncurrent portion of long-term debt	$	39,104		194,703

Required annual principal payments on long-term debt for the five years subsequent to December 31, 2011 are summarized as follows:

(in thousands)
2012	$	181,251
2013		13,452
2014		25,652
2015		—
2016		—

Capital lease obligations at December 31 consist of:

(in thousands)	2011		2010
Capital lease obligations	$	38,852		43,764
Less current portion		14,363		13,191
Noncurrent portion of capital leases	$	24,489		30,573

The future minimum lease payments under capital leases at December 31, 2011 are summarized as follows:

(in thousands)
2012	$	13,861
2013		12,393
2014		11,910
2015		1,607
2016		302
Total minimum lease payments		40,073
Less amount representing interest		1,221
	$	38,852

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Summary of Stock Option Exercises (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Exercised	597,161	41,403	1,205
Shares Issued from Treasury	597,161	41,403	1,205
Intrinsic Value	$ 3,627,000	$ 90,400	$ 14,300