Segment Reporting, including Geographic Area Data and Major Customers (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting, including Geographic Area Data and Major Customers

Operating Segments

Operating Segments	Years Ended December 31,
(in thousands)		2016	2015	2014
Adjusted operating income by segment:
Issuer Solutions (a)	$	525,025	489,151	406,635
Merchant Solutions (b)		307,595	150,225	134,872
Netspend (c)		160,371	137,837	128,285
Corporate Administration and Other		(135,996)	(109,036)	(107,175)
Adjusted segment operating income1 (d)		856,995	668,177	562,617
Less:
Share-based compensation		43,728	41,549	30,790
TransFirst and Netspend M&A and integration expenses2		28,176	-	3,217
Litigation, claims, judgments or settlements		21,719	-	-
Acquisition intangible amortization		189,990	92,521	96,970
Operating income		573,382	534,107	431,640
Nonoperating expenses, net		(112,168)	(37,219)	(38,711)
Income before income taxes and equity in income of equity investments	$	461,214	496,888	392,929
Net revenue by segment
Issuer Solutions (e)	$	1,515,462	1,473,914	1,291,305
Merchant Solutions (f)		898,533	474,040	435,649
Netspend (g)		663,579	580,377	482,686
Segment net revenue		3,077,574	2,528,331	2,209,640
Less: intersegment revenues		35,698	28,982	16,662
Net revenue3 (h)		3,041,876	2,499,349	2,192,978
Add: reimbursable items, interchange and assessment expenses		1,128,201	280,192	253,899
Total revenues	$	4,170,077	2,779,541	2,446,877
Adjusted segment operating margin on net revenue (non-GAAP):
Issuer Solutions (a)/(e)		34.6%	33.2%	31.5%
Merchant Solutions (b)/(f)		34.2%	31.7%	31.0%
Netspend (c)/(g)		24.2%	23.7%	26.6%
Adjusted segment operating margin on net revenue (d)/(h)		28.2%	26.7%	25.7%

¹ Adjusted segment operating income excludes acquisition intangible amortization, TransFirst M&A expenses, share-based compensation and expenses associated with Corporate Administration and Other.

² Excludes share-based compensation

³ Net revenue is total revenues less reimbursable items (such as postage), as well as, merchant acquiring interchange and assessment fees charged by the card associations or payment networks that are recorded by TSYS as expense..

Depreciation Expenses by segment

Operating Segments	Years Ended December 31,
(in thousands)		2016	2015	2014
Depreciation and amortization:
Issuer Solutions	$	141,309	134,436	125,422
Merchant Solutions		25,553	18,268	14,571
Netspend		13,133	10,686	7,509
Segment depreciation and amortization		179,995	163,390	147,502
Acquisition intangible amortization		189,990	92,521	96,970
Corporate Administration and Other		3,561	2,353	2,148
Total depreciation and amortization	$	373,546	258,264	246,620

Total Assets by Segment

	As of December 31,
(in thousands)	2016		2015
Issuer Solutions	$	5,667,280	3,565,236
Merchant Solutions		3,295,509	689,781
Netspend		1,474,595	1,504,740
Intersegment assets		(4,071,207)	(1,881,862)
Total assets	$	6,366,177	3,877,895

Property and Equipment, Net of Accumulated Depreciation and Amortization

	As of December 31,
(in thousands)	2016		2015
United States	$	236,913	241,814
Europe		38,866	41,953
Other		6,566	6,131
Total	$	282,345	289,898

Revenues Based on Domicile of Company's Customers

	2016
(in thousands)	Issuer         Solutions		Merchant Solutions	Netspend	Total		Percentage of Revenues
United States	$	1,032,381	1,826,775	660,845	$	3,520,001	84.4	%
Europe1		306,894	227	-		307,121	7.4
Canada1		284,028	705	-		284,733	6.8
Mexico		15,334	-	-		15,334	0.4
Other1		42,126	762	-		42,888	1.0
Total	$	1,680,763	1,828,469	660,845	$	4,170,077	100.0	%

	2015
(in thousands)	Issuer                    Solutions		Merchant Solutions	Netspend	Total		Percentage of Revenues
United States	$	981,588	548,079	580,377	$	2,110,044	75.9	%
Europe1		304,628	22	-		304,650	11.0
Canada1		288,728	355	-		289,083	10.4
Mexico		16,558	-	-		16,558	0.6
Other1		58,527	679	-		59,206	2.1
Total	$	1,650,029	549,135	580,377	$	2,779,541	100.0	%

	2014
(in thousands)	Issuer                    Solutions		Merchant Solutions	Netspend	Total		Percentage of Revenues
United States	$	778,766	508,747	482,686	$	1,770,199	72.3	%
Europe1		305,089	-	-		305,089	12.5
Canada1		290,248	248	-		290,496	11.9
Mexico		16,216	-	-		16,216	0.7
Other1		64,193	684	-		64,877	2.7
Total	$	1,454,512	509,679	482,686	$	2,446,877	100.0	%

¹ Revenues are impacted by movements in foreign currency exchange rates