NetSpend 2015 Annual Report Download - page 67

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Estimated future amortization expense of conversion costs and payments for processing rights as of
December 31, 2015 for the next five years is:
(in thousands) Conversion
Costs Payments for
Processing Rights
2016 ................................................................ $32,122 17,394
2017 ................................................................ 29,148 15,978
2018 ................................................................ 25,656 14,561
2019 ................................................................ 21,149 12,277
2020 ................................................................ 17,800 10,167
Note 12 Equity Investments
The Company has an equity investment in TSYS de México and records its 49% ownership using the equity
method of accounting. The operation prints statements and provides card-issuing support services to the equity
investment clients and others.
The Company has an equity investment in CUP Data and records its 44.56% ownership using the equity method
of accounting. CUP Data is sanctioned by the People’s Bank of China, China’s central bank, and has become one
of the world’s largest and fastest-growing payments networks. CUP Data currently provides transaction
processing, disaster recovery and other services for banks and bankcard issuers in China.
TSYS’ equity investments are recorded initially at cost and subsequently adjusted for equity in earnings, cash
contributions and distributions, and foreign currency translation adjustments. TSYS believes the carrying value
approximates the underlying assets of the equity investments.
TSYS’ equity in income of equity investments (net of tax) for the years ended December 31, 2015, 2014 and 2013
was $22.1 million, $17.6 million and $13.0 million, respectively.
A summary of TSYS’ equity investments as of December 31, 2015 and 2014 is as follows:
(in thousands) 2015 2014
CUP Data .................................................................... $ 98,518 92,738
TSYS de México .............................................................. 7,600 7,730
Total ...................................................................... $106,118 100,468
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