Acquisitions (Tables)

12 Months Ended

Dec. 31, 2015

Awards and Estimated Fair Value of Awards Issued in Acquisition

The following table provides a list of all replacement awards and the estimated fair value of those awards issued in conjunction with the acquisition of NetSpend:

	Number of Shares and Options Issued		Fair Value (in millions)
Time-based restricted stock		870,361	$	21.5
Non-qualified stock options		530,696		8.4
Incentive stock options		529,452		5.3
Performance-based restricted stock		87,356		2.2
Total		2,017,865	$	37.4

Pro Forma Revenue and Earnings

The amounts of NetSpend revenue and earnings included in TSYS’ consolidated income statement for the year ended December 31, 2013, and the pro forma revenue and earnings of the combined entity had the acquisition date been January 1, 2013 are:

	Actual		Supplemental pro forma
	Year Ended December 31 ,2013		Year Ended December 31, 2013
(in thousands, except per share data)
Revenue	$	2,064,305		2,286,348
Net income attributable to TSYS common shareholders	$	244,750		239,775

NetSpend Holdings Inc

Amounts of Assets Acquired and Liabilities Assumed Recognized

The following table summarizes the consideration paid for NetSpend and the initially recognized amounts of the identifiable assets acquired and liabilities assumed on July 1, 2013 (the acquisition date).

(in thousands)
Consideration
Cash	$	1,355,270
Equity instruments		15,557
Dissenting shareholder liability*		25,723
Fair value of total consideration transferred	$	1,396,550
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash	$	40,610
Accounts receivable		11,335
Property equipment and software		11,657
Identifiable intangible assets		480,086
Deferred tax asset		10,165
Other assets		36,660
Deferred tax liability		(155,945	)
Financial liabilities		(62,452	)
Total identifiable net assets		372,116
Goodwill		1,024,434
	$	1,396,550

* Represents 1.6 million NetSpend shares held by dissenting shareholders

Estimated Fair Value of Identifiable Intangible Assets Acquired

The estimated fair value of identifiable intangible assets acquired in the acquisitions and the related estimated weighted average useful lives are as follows:

(in thousands)	Fair Value		Weighted Average Useful Life (in years)
Channel relationships	$	317,000		8.0
Current technology		78,711		7.0
Trade name		44,000		5.0
Database		28,000		5.0
Covenants-not-to-compete		11,500		6.0
Favorable lease		875		4.9
Total acquired identifiable intangible assets	$	480,086		7.3