Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations

Note 2 Discontinued Operations

In accordance with GAAP, the Company determined its Japan-based businesses became discontinued operations in the first quarter of 2014.

The Company sold all of its stock of GP Network Corporation (GP Net) (representing 54% ownership of the company) and all of its stock of TSYS Japan Godo Kaisha (TSYS Japan) (representing 100% ownership of the company) in April 2014. Both entities were part of the International Services segment. The sale of the Company’s stock in both of its operations in Japan was the result of management’s decision during the first quarter of 2014 to divest non-strategic businesses and focus resources on core products and services. In 2014, the Company had a gain of $48.6 million, net of tax, related to the sales of its operations in Japan. In 2015, the Company recorded an additional gain of $1.4 million, net of tax, related to the return of cash that was placed in escrow during closing and tax adjustments associated with the transaction.

GP Net and TSYS Japan were not significant components of TSYS’ consolidated results.

The following table presents the main classes of assets and liabilities held for sale as of December 31, 2014:

(in thousands)	2014
Total assets	$	4,003
Total liabilities		4,003

The following table presents the summarized results of discontinued operations for the years ended December 31, 2015, 2014 and 2013:

(in thousands)	2015		2014			2013
Total revenues	$	—	$	16,376			68,048
Income before taxes	$	—	$	1			3,443
Income tax (benefit) expense	$	—	$	(39	)		1,388
Income from operating activities of discontinued operations, net of tax	$	—	$	40			2,055
Gain on dispositions, net of tax	$	1,411	$	48,615			—
Income from discontinued operations, net of tax	$	1,411	$	48,655			2,055
Income from discontinued operations, net of tax, attributable to noncontrolling interest	$	—	$	999			4,198
Income (loss) from discontinued operations, net of tax, attributable to TSYS common shareholders	$	1,411	$	47,656			(2,143	)
Interest allocated to discontinued operations1	$	—	$	—			281

1 Interest expense relates to borrowings directly for use by Japan-based operations.