NetSpend 2015 Annual Report Download - page 61

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As of December 31, 2015, the Company had recorded goodwill in the amount of $1.5 billion. The Company
performed its annual impairment test of its goodwill balances as of May 31, 2015, and this test did not indicate
any impairment. The fair value of the RUs substantially exceeds the carrying value. Refer to Note 7 for more
information regarding goodwill.
The fair value of the Company’s long-term debt and obligations under capital leases is not significantly different
from its carrying value.
Note 4 Relationships with Affiliated Companies
TSYS has a note payable to Merchants Limited, which has a noncontrolling interest in EMEA. Refer to Note 13 for
more information regarding this loan.
The Company provides miscellaneous services to Merchants Limited and to the Company’s equity investments,
TSYS de México and CUP Data.
The foregoing related party arrangements and services are performed under contracts that are similar to its
contracts with unrelated third party customers. The Company believes the terms and conditions of transactions
between the Company and these related parties are comparable to those which could have been obtained in
transactions with unaffiliated parties.
Through its related party transactions, TSYS generates accounts receivable and liability accounts with TSYS de
México and CUP Data.
The Company had the following balances with related parties as of December 31, 2015 and 2014:
(in thousands) 2015 2014
Accounts receivable .............................................................. $19$19
Account payable ................................................................. 3,278 4,329
The table below details revenues and expenses derived from affiliated companies for the years ended
December 31, 2015, 2014 and 2013:
(in thousands) 2015 2014 2013
Total revenues:
CUP Data ............................................................... $ 116 232 229
TSYS de México .......................................................... 85 78 68
Total revenues ............................................................. $ 201 310 297
Total operating expenses:
Merchants Limited ........................................................ $4,202 9,842 5,739
TSYS de México .......................................................... 148 148 148
Total operating expenses .................................................... $4,350 9,990 5,887
Nonoperating expenses paid to Merchants Limited .............................. $42 ——
57