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On January 28, 2014, TSYS announced that its Board
had approved an increase in the number of shares
that may be repurchased under its current share
repurchase plan from up to 20 million shares to up to
28 million shares of TSYS stock. With the increase,
TSYS has 12.0 million shares available to be
repurchased. In addition, the expiration date of the
plan was extended to April 30, 2015.
Dividends
Dividends on common stock of $56.5 million were
paid in 2013, compared to $94.0 million and
$53.9 million in 2012 and 2011, respectively. The
Company paid dividends of $0.30 per share in 2013,
$0.50 per share in 2012 and $0.28 per share in 2011.
The decrease in dividends paid in 2013 compared to
2012 is due to the acceleration of payment of the
fourth quarter 2012 dividend. The fourth quarter
2012 dividend payment was paid in December,
rather than January, to allow shareholders to benefit
from the lower dividend tax rate that was set to
expire on December 31, 2012. In October 2011,
TSYS announced that its Board of Directors approved
a 42.9% increase in the regular quarterly dividend
payable on the Company’s common stock from
$0.07 per share to $0.10 per share.
Significant Noncash Transactions
During 2013, 2012 and 2011, the Company issued
1.7 million, 311,000, and 206,000 shares of common
stock, respectively, to certain key employees and
non-management members of its Board of Directors.
The grants to certain key employees were issued in
the form of nonvested stock bonus awards for
services to be provided in the future by such officers
and employees. The grants to the Board of Directors
were fully vested on the date of grant. The market
value of the common stock at the date of issuance is
amortized as compensation expense over the vesting
period of the awards.
The Company acquired computer equipment and
software under capital lease in the amount of
$14.8 million, $5.3 million and $8.1 million in 2013,
2012 and 2011, respectively.
Refer to Notes 18 and 22 in the consolidated financial
statements for more information on share-based
compensation and significant noncash transactions.
Additional Cash Flow Information
Off-Balance Sheet Financing
TSYS uses various operating leases in its normal
course of business. These “off-balance sheet”
arrangements obligate TSYS to make payments for
computer equipment, software and facilities. These
computer and software lease commitments may be
replaced with new lease commitments due to new
technology. Management expects that, as these
leases expire, they will be evaluated and renewed or
replaced by similar leases based on need.
The following table summarizes future contractual
cash obligations, including lease payments and
software arrangements, as of December 31, 2013, for
the next five years and thereafter:
Contractual Cash Obligations
Payments Due By Period
(in millions) Total 1 Year
or Less 2-3
Years 3-5
Years After
5 Years
Debt
obligations
(principal) . . . $1,466 34 67 815 550
Debt
obligations
(interest) . . . 270 38 75 64 93
Operating
leases ...... 466 124 233 67 42
Redeemable
noncontrolling
interest .... 40 40 — — —
Capital lease
obligations . 31 23 6 2 —
Dissenting
shareholder
liability ..... 26 26 — — —
Total
contractual
cash
obligations . $2,299 285 381 948 685
Income Taxes
The total liability for uncertain tax positions under
ASC 740, “Income Taxes,” as of December 31, 2013
is $2.7 million. Refer to Note 14 in the consolidated
financial statements for more information on income
taxes. The Company is not able to reasonably
estimate the amount by which the liability will
increase or decrease over time; however, at this time,
the Company does not expect any significant
changes related to these obligations within the next
twelve months.
28