NetSpend 2012 Annual Report Download - page 57

Comprehensive income is the sum of net income and other items that must bypass the income statement
because they have not been realized, including items such as an unrealized holding gain or loss from available for
sale securities and foreign currency translation gains or losses. These items are not part of net income, yet are
important enough to be included in comprehensive income, giving the user a more comprehensive picture of the
organization as a whole. Items included in comprehensive income, but not net income, are reported under the
accumulated other comprehensive income section of shareholders’ equity.
Comprehensive income (loss) for TSYS consists of net income, cumulative foreign currency translation
adjustments and the recognition of an overfunded or underfunded status of a defined benefit postretirement
plan recorded as a component of shareholders’ equity. The income tax effects allocated to and the cumulative
balance of each component of accumulated other comprehensive income (loss) are as follows:
(in thousands) Beginning Balance Pretax amount Tax effect Net-of-Tax Amount Ending Balance
At December 31, 2009 ............................... $(6,627) 14,375 2,075 12,300 $ 5,673
Foreign currency translation adjustments ................ $6,287 (8,609) (1,080) (7,529) $ (1,242)
Change in accumulated OCI related to postretirement
healthcare plans ................................... (614) (1,138) (409) (729) (1,343)
At December 31, 2010 ............................... $5,673 (9,747) (1,489) (8,258) $ (2,585)
Foreign currency translation adjustments ................ $(1,242) 3,718 2,662 1,056 $ (186)
Transfer from noncontrolling interest (NCI) ............... — 28 — 28 28
Change in accumulated OCI related to postretirement
healthcare plans ................................... (1,343) 1,651 595 1,056 (287)
At December 31, 2011 ............................... $(2,585) 5,397 3,257 2,140 $ (445)
Foreign currency translation adjustments .............. $ (186) 4,875 1,357 3,518 $ 3,332
Transfer from NCI .................................. 28 — — — 28
Change in accumulated OCI related to postretirement
healthcare plans .................................. (287) (2,603) (938) (1,665) (1,952)
At December 31, 2012 .............................. $ (445) 2,272 (419) 1,853 $ 1,408
Consistent with its overall strategy of pursuing international investment opportunities, TSYS adopted the
permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain
foreign subsidiaries. Its decision to permanently reinvest foreign earnings offshore means TSYS will no longer
allocate taxes to foreign currency translation adjustments associated with these foreign subsidiaries accumulated
in other comprehensive income.
NOTE 19 Commitments and
Contingencies
LEASE COMMITMENTS: TSYS is obligated under
noncancelable operating leases for computer
equipment and facilities.
The future minimum lease payments under
noncancelable operating leases with remaining terms
greater than one year for the next five years and
thereafter and in the aggregate as of December 31,
2012, are as follows:
(in thousands)
2013 ............................... $ 76,479
2014 ............................... 53,859
2015 ............................... 27,419
2016 ............................... 7,529
2017 ............................... 4,543
Thereafter .......................... 12,639
Total future minimum lease payments . . . $182,468
The majority of computer equipment lease
commitments come with a renewal option or an
option to terminate the lease. These lease
commitments may be replaced with new leases which
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