Supplementary Balance Sheet Information

9 Months Ended

Sep. 30, 2015

Supplementary Balance Sheet Information

Note 4 — 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)	September 30, 2015		December 31, 2014
Cash and cash equivalents in domestic accounts	$	392,133		225,396
Cash and cash equivalents in foreign accounts		55,717		63,787
Total	$	447,850		289,183

Prepaid Expenses and Other Current Assets

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

(in thousands)	September 30, 2015		December 31, 2014
Prepaid expenses	$	34,368		35,334
Supplies inventory		13,115		14,340
Other		44,269		49,300
Total	$	91,752		98,974

Contract Acquisition Costs, net

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

(in thousands)	September 30, 2015		December 31, 2014
Conversion costs, net of accumulated amortization of $156.5 million and $138.7 million as of 2015 and 2014, respectively	$	161,615		159,339
Payments for processing rights, net of accumulated amortization of $148.1 million and $137.4 million as of 2015 and 2014, respectively		91,054		76,966
Total	$	252,669		236,305

Amortization expense related to conversion costs, which is recorded in cost of services, was $7.0 million and $4.5 million for the three months ended September 30, 2015 and 2014, respectively. For the nine months ended September 30, 2015 and 2014, amortization related to conversion costs was $20.1 million and $12.9 million, respectively.

Amortization related to payments for processing rights, which is recorded as a reduction of revenues, was $4.6 million and $4.4 million for the three months ended September 30, 2015 and 2014, respectively. For the nine months ended September 30, 2015 and 2014, amortization related to payments for processing rights was $12.4 million and $11.5 million, respectively.

Other Current Liabilities

Significant components of other current liabilities are summarized as follows:

(in thousands)	September 30, 2015		December 31, 2014
Deferred revenues	$	40,680		41,773
Accrued expenses		29,046		23,617
Dividends payable		18,982		19,006
Accrued interest		11,246		2,819
Accrued income taxes		8,043		—
Other		73,901		67,590
Total	$	181,898		154,805

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, 2014			Pretax Amount			Tax Effect			Net-of-Tax Amount			Ending Balance September 30, 2015
Foreign currency translation adjustments and transfers from noncontrolling interests	$	(13,564	)		(17,150	)		(622	)		(16,528	)	$	(30,092	)
Unrealized gain on available-for-sale securities		1,105			1,346			497			849			1,954
Change in AOCI related to postretirement healthcare plans		533			691			250			441			974
Total	$	(11,926	)		(15,113	)		125			(15,238	)	$	(27,164	)

There were no reclassifications of AOCI to net income or to other accounts for the nine months ended September 30, 2015.