NetSpend 2013 Annual Report Download - page 68

NOTE 20 Other Comprehensive Income (Loss)
Comprehensive income (loss) for TSYS consists of net income, cumulative foreign currency translation
adjustments, unrealized gain on available for sale securities 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
As of 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 other comprehensive income (OCI)
related to postretirement healthcare plans .............. (1,343) 1,651 595 1,056 (287)
As of 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)
As of December 31, 2012 .............................. $ (445) 2,272 419 1,853 $ 1,408
Foreign currency translation adjustments ............... $ 3,332 (295) 1,033 (1,328) $2,004
Transfer from NCI ................................... 28 — — — 28
Gain on available for sale securities .................... — 2,810 1,037 1,773 1,773
Change in accumulated OCI related to postretirement
healthcare plans ................................... (1,952) 1,926 30 1,896 (56)
As of December 31, 2013 ............................ $ 1,408 4,441 2,100 2,341 $3,749
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 21 Segment Reporting, including
Geographic Area Data and
Major Customers
ASC 280, “Segment Reporting” 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 expenses, such as
finance, legal, human resources, mergers and
acquisitions and investor relations are categorized as
Corporate Administration.
On July 1, 2013, TSYS completed its acquisition of all
the outstanding stock of NetSpend, which previously
operated as a publicly traded company. NetSpend’s
financial results are included in the NetSpend
segment.
On December 26, 2012, TSYS completed its
acquisition of all the outstanding stock of ProPay, a
privately-held payment solutions company. 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. 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, Georgia-based merchant acquirer.
TermNet’s financial results are included in the
Merchant Services segment.
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