NetSpend 2015 Annual Report Download - page 42

Impact of Inflation
Although the impact of inflation on its operations cannot be precisely determined, the Company believes that by
controlling its operating expenses and by taking advantage of more efficient computer hardware and software, it
can minimize the impact of inflation.
Working Capital
TSYS may seek additional external sources of capital in the future. The form of any such financing will vary
depending upon prevailing market and other conditions and may include short-term or long-term borrowings
from financial institutions or the issuance of additional equity and/or debt securities such as industrial revenue
bonds. However, there can be no assurance that funds will be available on terms acceptable to TSYS.
Management expects that TSYS will continue to be able to fund a significant portion of its capital expenditure
needs through internally generated cash in the future, as evidenced by TSYS’ current ratio of 2.6:1. As of
December 31, 2015, TSYS had working capital of $543.7 million, compared to $394.0 million in 2014 and $356.7
million in 2013.
Legal Proceedings
Refer to Note 16 in the Consolidated Financial Statements for information regarding the Company’s
commitments and contingencies including legal proceedings.
Forward-Looking Statements
Certain statements contained in this filing which are not statements of historical fact constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act (the Act). These forward-looking
statements include, among others: (i) TSYS’ expectation that the loss of Bank of America as a merchant services
client will not have a material adverse effect on TSYS’ business; (ii) TSYS’ expectation that the Durbin Amendment
will not have a significant negative impact on TSYS’ business; (iii) TSYS’ expectation with respect to the effect of
recent accounting pronouncements; (iv) TSYS’ expectation that it will be able to fund a significant portion of its
capital expenditure needs through internally generated cash in the future; (v) TSYS’ earnings guidance for 2016
total revenues, revenues before reimbursable items, and adjusted EPS attributable to TSYS’ common
shareholders from continuing operations; (vi) TSYS’ belief with respect to lawsuits, claims and other complaints;
(vii) TSYS’ expectation with respect to certain tax matters; (viii) the Board’s intention to continue to pay cash
dividends; (ix) statements regarding the pending Transfirst acquisition, and the assumptions underlying such
statements. In addition, certain statements in future filings by TSYS with the Securities and Exchange
Commission, in press releases, and in oral and written statements made by or with the approval of TSYS which
are not statements of historical fact constitute forward-looking statements within the meaning of the Act.
Examples of forward-looking statements include, but are not limited to: (i) projections of revenue, income or loss,
earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items;
(ii) statements of plans and objectives of TSYS or its management or Board of Directors, including those relating
to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions
underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,”
“estimates,” “projects,” “plans,” “may,” “could,” “should,” “would,” and similar expressions are intended to
identify forward-looking statements but are not the exclusive means of identifying these statements.
These statements are based upon the current beliefs and expectations of TSYS’ management and are subject to
significant risks and uncertainties. Actual results may differ materially from those contemplated by the forward-
looking statements. A number of important factors could cause actual results to differ materially from those
contemplated by the Company’s forward-looking statements. Many of these factors are beyond TSYS’ ability to
control or predict. These factors include, but are not limited to:
• the material breach of security of any of TSYS’ systems;
• TSYS incurs expenses associated with the signing of a significant client;
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