NetSpend 2015 Annual Report Download - page 40

The put option is not currently redeemable, but redemption is considered probable based upon the passage of
time toward the third anniversary date of the 2014 purchase of additional equity. The Company’s accounting
policy is to accrete changes in the redemption value over the period from the date of issuance to the earliest
redemption date, which the Company believes to be in 2017. The Company did not accrete any changes to the
redemption value as the balance as of December 31, 2015 exceeded the accretion fair value amount.
Refer to Note 24 in the Consolidated Financial Statements for more information on this purchase.
Stock Repurchase Plan
In January 2015, TSYS announced that its Board had approved a new stock repurchase plan to repurchase up to
20 million shares of TSYS stock. The shares may be purchased from time to time at prices considered
appropriate. There is no expiration date for the plan. Through December 31, 2015, the Company purchased
5.2 million shares for approximately $242.1 million, at an average price of $47.01.
In April 2010, TSYS announced a stock repurchase plan to purchase up to 10 million shares of TSYS stock. The
shares were to be purchased from time to time over the next two years at prices considered attractive to the
Company. In May 2011, 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 10 million shares to up to 15 million
shares of TSYS stock. The expiration date of the plan was also extended to April 30, 2013. In July 2012, 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 15 million shares to up to 20 million shares of TSYS stock. The
expiration date of the plan was also extended to April 30, 2014. In January, 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 had 6.8 million
shares available to be repurchased. In addition, the expiration date of the plan was extended to April 30, 2015.
Through December 31, 2014 and 2013, respectively, the Company purchased 21.2 million and 16.0 million
shares for approximately $503.3 million and $338.0 million, at an average price of $23.75 and $21.13. In January
2015, this plan was terminated.
Dividends
Dividends on common stock of $73.7 million were paid in 2015, compared to $74.8 million and $56.5 million in
2014 and 2013, respectively. The Company paid dividends of $0.40 per share in 2015 and 2014, and $0.30 per
share in 2013. The increase in dividends paid in 2014, compared to 2013, is due to the acceleration of the
payment of the fourth quarter 2012 dividend. The fourth quarter 2012 dividend payment was paid in December
2012, rather than January 2013, to allow shareholders to benefit from the lower dividend tax rate that was set to
expire on December 31, 2012.
Significant Noncash Transactions
During 2015, 2014 and 2013, the Company issued 388,211, 673,724 and 1.7 million 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 market value of the common stock at the date of issuance is
amortized as compensation expense over the vesting period of the awards. The grants to the Board of Directors
were fully vested on the date of grant.
The Company acquired computer equipment and software under capital leases in the amount of $4.1 million,
$17.9 million and $14.8 million in 2015, 2014 and 2013, respectively.
Refer to Notes 19 and 23 in the Consolidated Financial Statements for more information on share-based
compensation and significant noncash transactions.
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