XML 70 R53.htm IDEA: XBRL DOCUMENT v3.3.1.900
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2015
Summary of Performance- and Market- Based Awards Granted

The following table summarizes the performance- and market-based awards granted during the years 2015, 2014 and 2013:

 

 

 

Year
Awarded		    Type of
Award		    Performance
Period Ending		   

Performance

Measure

    Number of
Shares
Granted		      Period Expensed
Through
2015    Market    July 2016, 2017

and 2018

    Total Shareholder Return      25,000       July 2018
2015    Performance    December 2017    Adjusted EPS      135,289       December 2017
2015    Market    December 2017    Total Shareholder Return      57,982       December 2017
2015    Performance    December 2015    Revenues before Reimbursable Items and Adjusted EPS      165,543       December 2018
2014    Performance    December 2016    Revenues before Reimbursable Items and Adjusted EPS      211,593       December 2016
2013    Performance    December 2015    NetSpend Revenues and NetSpend Operating Income      87,356       December 2015
2013    Performance    December 2015    Revenues before Reimbursable Items and Income from Continuing Operations      237,679       December 2015
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:

 

 

 

     2015     2014     2013  

Number of options granted

      613,473        1,046,372        1,939,796   

Weighted average exercise price

    $ 39.01      $ 30.96      $ 17.42   

Risk-free interest rate

      1.73 %      2.01 %      1.31 % 

Expected volatility

      20.80 %      25.06 %      26.81 % 

Expected term (years)

      6.3        6.5        6.0   

Dividend yield

      1.04 %      1.29 %      1.64 % 

Weighted average fair value

    $ 8.27      $ 7.66      $ 9.48   
Summary of Stock Option Activity and Changes during Year

A summary of TSYS’ stock option activity as of December 31, 2015, 2014 and 2013, and changes during the years ended on those dates is presented below:

 

 

 

     2015      2014      2013  
(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

      4,892      $ 23.83         5,752      $ 20.96         6,065      $ 21.27   

Granted 1

      613        39.01         1,046        30.96         1,940        17.42   

Exercised

      (2,586 )      22.68         (1,850 )      18.79         (2,177 )      18.75   

Forfeited/canceled

      (32 )      20.79         (56 )      28.88         (76 )      16.78   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Outstanding at end of year

      2,887      $ 28.07         4,892      $ 23.83         5,752      $ 20.96   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Options exercisable at year-end

      1,439      $ 25.17         2,781      $ 22.86         3,232      $ 23.02   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Weighted average fair value of options granted during the year

      $ 8.27         $ 7.66         $ 9.48   
    

 

 

       

 

 

       

 

 

  

 

 

 

1 Includes the issuance of approximately 1.1 million stock option replacement awards in connection with the acquisition of NetSpend in 2013. These awards had a market value of $13.7 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 24.

 

As of December 31, 2015 the average remaining contractual life and intrinsic value of TSYS’ outstanding and exercisable stock options were as follows:

 

 

 

     Outstanding      Exercisable  

Average remaining contractual life (in years)

      7.8         7.2   

Aggregate intrinsic value (in thousands)

    $ 62,738         35,434   
Summary of Stock Option Exercises

The table below summarizes these stock option exercises by year:

 

 

 

(in thousands)    Options Exercised and
Issued from Treasury		      Intrinsic Value  
2015      2,586       $ 67,702   

2014

      1,850         22,883   

2013

      2,177         16,580   
Performance Shares  
Summary of Number of Shares Granted Each Year

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

 

 

    2015     2014     2013  

Number of shares

     388,211        672,724        1,667,246   

Market value (in millions)

   $ 14.9        20.6        41.3   
Summary of Awards Authorized

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

 

 

 

     Total
Number of
Shares
Awarded		      Potential Number of
Performance-and
Market-Based
Shares to be Vested		  

2015

      383,814         526,879         (2018 ) 

2014

      211,593         211,593         (2017 ) 

2013

      563,803         400,539         (2016 ) 
Summarized Status of Performance-based Nonvested Shares and Changes during Period

A summary of the status of TSYS’ performance- and market-based nonvested shares as of December 31, 2015, 2014 and 2013 and changes during those periods are presented below:

 

 

 

     2015      2014      2013  

(in thousands, except per share data)

Performance- and market-based Nonvested shares

    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

      766      $ 25.86         1,049      $ 22.75         809      $ 18.76   

Granted1

      384        36.84         211        30.89         564        24.88   

Vested

      (241 )      22.92         (258 )      17.57         (324 )      15.93   

Forfeited/canceled/adjusted

      9        22.20         (236 )      25.62         —        —   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Outstanding at end of year

      918      $ 31.19         766      $ 25.86         1,049      $ 22.75   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

 

 

1 Includes the issuance of approximately 87,356 stock replacement awards in connection with the acquisition of NetSpend in 2013. These awards had a market value of $2.2 million. A portion of the expense associated with these awards has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 24.
Unvested Restricted Awards  
Summarized Status of Nonvested Shares and Changes during Periods

A summary of the status of TSYS’ nonvested shares as of December 31, 2015, 2014 and 2013 and the changes during the periods are presented below:

 

 

 

     2015      2014      2013  

(in thousands, except per share data)

Nonvested shares

    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

      1,769      $ 26.75         1,783      $ 24.19         554      $ 19.96   

Granted1

      388        38.38         673        30.67         1,667        24.75   

Vested

      (930 )      26.05         (602 )      23.74         (328 )      19.95   

Forfeited/canceled

      (81 )      28.78         (85 )      25.47         (110 )      23.82   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Outstanding at end of year

      1,146      $ 31.11         1,769      $ 26.75         1,783      $ 24.19   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

 

 

1 Includes the issuance of approximately 870,361 stock replacement awards in connection with the acquisition of NetSpend in 2013. These awards had a market value of $21.5 million. A portion of the expense associated with these options has been included as a component of the total purchase price of the NetSpend acquisition. Refer to Note 24.