NetSpend 2015 Annual Report Download - page 33

Net Income
The following table provides a summary of net income and EPS:
Years Ended December 31, Percent Change
(in thousands, except per share data) 2015 2014 2013 2015 vs. 2014 2014 vs. 2013
Net Income ............................... $369,041 329,406 256,597 12.0% 28.4%
Net income attributable to noncontrolling
interests ................................ (4,997) (6,534) (11,847) (23.5) (44.8)
Net income attributable to TSYS common
shareholders ............................ $364,044 322,872 244,750 12.8 31.9
Basic EPS attributable to TSYS common
shareholders1........................... $ 1.98 1.73 1.30 14.1 33.5
Diluted EPS attributable to TSYS common
shareholders1............................ $ 1.97 1.72 1.29 14.2 33.6
1 Basic and diluted EPS is computed based on the two-class method in accordance with the guidance under GAAP. Refer to
Note 26 in the Consolidated Financial Statements for more information on EPS.
Net income attributable to noncontrolling interests in 2015 decreased by $1.5 million, from 2014 and decreased
$5.3 million in 2014 from 2013. The decrease in 2015 compared to 2014 is driven by the sale of GP Net in 2014
and the operating results of the Company’s European cost center business. The decrease in 2014 was a result of
the additional acquisition of 15% of Central Payment Co., LLC (CPAY) in 2014.
Non-GAAP Financial Measures
Management evaluates the Company’s operating performance based upon operating margin excluding
reimbursables, adjusted EBITDA, adjusted segment operating income, adjusted segment operating margin and
adjusted EPS, which are all non-generally accepted accounting principles (non-GAAP) measures. TSYS also uses
these non-GAAP financial measures to evaluate and assess TSYS’ financial performance against budget.
Although not a substitute for GAAP, TSYS believes that non-GAAP financial measures are important to enable
investors to understand and evaluate its ongoing operating results. Accordingly, TSYS includes non-GAAP
financial measures when reporting its financial results to shareholders in order to provide them with an additional
tool to evaluate TSYS’ ongoing business operations. TSYS believes that the non-GAAP financial measures are
representative of comparative financial performance that reflects the economic substance of TSYS’ current and
ongoing business operations.
Although non-GAAP financial measures are often used to measure TSYS’ operating results and assess its financial
performance, they are not necessarily comparable to similarly titled captions of other companies due to potential
inconsistencies in the method of calculation.
TSYS believes that its use of non-GAAP financial measures provides investors with the same key financial
performance indicators that are utilized by management to assess TSYS’ operating results, evaluate the business
and make operational decisions on a prospective, going-forward basis. Hence, management provides disclosure
of non-GAAP financial measures to give shareholders and potential investors an opportunity to see TSYS as
viewed by management, to assess TSYS with some of the same tools that management utilizes internally and to
be able to compare such information with prior periods. TSYS believes that the presentation of GAAP financial
measures alone would not provide its shareholders and potential investors with the ability to appropriately
analyze its ongoing operational results, and therefore expected future results. TSYS therefore believes that
inclusion of non-GAAP financial measures provides investors with additional information to help them better
understand its financial statements just as management utilizes these non-GAAP financial measures to better
understand the business, manage budgets and allocate resources.
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