NetSpend 2014 Annual Report Download - page 79

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Note 21 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 Ending
Balance
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 noncontrolling interest (NCI) ............. 28 — — — 28
Change in accumulated other comprehensive income
(AOCI) 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 AOCI 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
Foreign currency translation adjustments ............ $2,004 (17,143) (1,547) (15,596) $(13,592)
Transfer from NCI ................................ 28 — — — 28
Gain on available for sale securities ................. 1,773 (1,058) (390) (668) 1,105
Change in AOCI related to postretirement healthcare
plans .......................................... (56) 921 332 589 533
As of December 31, 2014 .......................... $3,749 (17,280) (1,605) (15,675) $(11,926)
Consistent with its overall strategy of pursuing international investment opportunities, TSYS adopted the
permanent reinvestment exception under GAAP, 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 22 Segment Reporting, including 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.
In the first quarter of 2014, the Company’s Japan-based entities qualified for discontinued operations treatment.
In July 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.
In December 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.
In August 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. In February, 2014, the Company
purchased an additional 15% equity interest in CPAY.
Refer to Note 24 for more information on acquisitions.
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