NetSpend 2012 Annual Report Download - page 62

these plans charged to expense for the years ended
December 31 are as follows:
(in thousands)
2012 ................................ $1,140
2011 ................................ 1,177
2010 ................................ 1,260
POSTRETIREMENT MEDICAL BENEFITS
PLAN: TSYS provides certain medical benefits to
qualified retirees through a postretirement medical
benefits plan, which is immaterial to the Company’s
consolidated financial statements. The measurement
of the benefit expense and accrual of benefit costs
associated with the plan do not reflect the effects of
the 2003 Medicare Act. Additionally, the benefit
expense and accrued benefit cost associated with the
plan, as well as any potential impact of the effects of
the 2003 Medicare Act, are not significant to the
Company’s consolidated financial statements.
NOTE 22 Segment Reporting, including
Geographic Area Data and
Major Customers
ASC 280, “Segment Reporting.” ASC 280 establishes
standards for the way public business enterprises are
to report information about operating segments in
annual financial statements and requires those
enterprises to report selected financial information
about operating segments in interim financial reports
issued to shareholders. It also establishes standards
for related disclosures about products and services,
geographic area data and major customers.
TSYS provides global payment processing and other
services to card-issuing and merchant acquiring
institutions in the United States and internationally
through online accounting and electronic payment
processing systems. Corporate administration
expenses, such as finance, legal, human resources,
mergers and acquisitions and investor relations are
categorized as Corporate Administration.
On December 26, 2012, TSYS completed its
acquisition of all the outstanding stock of ProPay, a
privately-held payment solutions company, for
$123.7 million in cash. ProPay’s financial results are
included in the Merchant Services segment.
On August 8, 2012, TSYS completed its acquisition of
60% of CPAY, a privately held direct merchant
acquirer, for $66 million in cash. CPAY’s financial
results are included in the Merchant Services
segment.
On May 2, 2011, TSYS completed its acquisition of all
of the outstanding common stock of TermNet, an
Atlanta-based merchant acquirer. TermNet’s financial
results are included in the Merchant Services
segment.
North America Services includes electronic payment
processing services and other services provided from
within the North America region. International
Services includes electronic payment processing and
other services provided from outside the North
America region. Merchant Services includes
electronic processing and other services provided to
merchant acquiring institutions.
The Company believes the terms and conditions of
transactions between the segments are comparable
to those which could have been obtained in
transactions with unaffiliated parties. TSYS’ operating
segments share certain resources, such as
information technology support, that TSYS allocates
asymmetrically.
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