Note 3 — Supplementary Balance Sheet Information

Cash and Cash Equivalents

The Company maintains 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.

Cash and cash equivalent balances are summarized as follows:


(in thousands)	June 30, 2013		December 31, 2012
Cash and cash equivalents in domestic accounts	$	1,316,180		152,373
Cash and cash equivalents in foreign accounts		58,029		95,239

Total	$	1,374,209		247,612

At June 30, 2013 and December 31, 2012, the Company had approximately $5.0 million and $2.5 million, respectively, 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 at the time of purchase that they present insignificant risk of changes in value because of change in interest rates.

Prepaid Expenses and Other Current Assets

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


(in thousands)	June 30, 2013		December 31, 2012
Prepaid expenses	$	40,947		24,615
Supplies inventory		7,467		8,881
Other		34,822		36,428

Total	$	83,236		69,924

Contract Acquisition Costs, net

Significant components of contract acquisition costs, net of accumulated amortization, are summarized as follows:


(in thousands)	June 30, 2013		December 31, 2012
Conversion costs, net of accumulated amortization of $111.9 million and $105.4 million at 2013 and 2012, respectively	$	92,890		85,402
Payments for processing rights, net of accumulated amortization of $114.2 million and $110.6 million at 2013 and 2012, respectively		73,155		75,865

Total	$	166,045		161,267

Amortization expense related to conversion costs, which is recorded in cost of services, was $4.0 million and $7.3 million for the three months ended June 30, 2013 and 2012, respectively. For the six months ended June 30, 2013 and 2012, amortization related to conversion costs was $9.4 million and $11.5 million, respectively.

Amortization related to payments for processing rights, which is recorded as a reduction of revenues, was $3.3 million and $2.9 million for the three months ended June 30, 2013 and 2012, respectively. For the six months ended June 30, 2013 and 2012, amortization related to payments for processing rights was $6.6 million and $6.8 million, respectively.

Other Current Liabilities

Significant components of other current liabilities are summarized as follows:


(in thousands)	June 30, 2013		December 31, 2012
Accrued expenses	$	26,809		30,963
Deferred revenues		31,697		29,101
Dividends payable		19,160		729
Accrued income taxes		—		10,936
Other		40,295		28,553

Total	$	117,961		100,282

Accumulated Other Comprehensive Income (AOCI)

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


(in thousands )	Beginning Balance December 31, 2012			Pre tax Amount			Tax Effect			Net-of-Tax Amount			Ending Balance June 30,2013
Foreign currency translation adjustments and Transfers from NCI	$	3,360			(12,983	)		(1,315	)		(11,668	)		(8,308	)
Change in AOCI related to postretirement healthcare plans		(1,952	)		484			174			310			(1,642	)

Total	$	1,408			(12,499	)		(1,141	)		(11,358	)		(9,950	)

There were no reclassifications of AOCI to net income or to other accounts for the three and six month periods ended June 30, 2013.