NetSpend 2015 Annual Report Download - page 91

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In February 2014, the Company purchased an additional 15% equity interest in CPAY for $37.5 million, reducing
its redeemable noncontrolling interest in CPAY to 25%. As a result of this transaction, the call and put
arrangements for CPAY, representing 25% of its total outstanding equity interests, were extended and may now
be exercised at the discretion of TSYS or the Seller on the third anniversary of the closing of the additional
purchase and upon the recurrence of certain other specified events.
The put option is not currently redeemable, but redemption is considered probable based upon the passage of
time of the third anniversary date of the 2014 purchase of additional equity. As such, the Company has adopted
the accounting policy 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. If the put option was redeemable as of
December 31, 2015, the redemption value was estimated to be approximately $23.4 million. 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.
Pro forma Results of Operations
The pro forma revenue and earnings of TSYS’ acquisitions other than NetSpend are not material to the
consolidated financial statements.
Note 25 Collaborative Arrangement
TSYS has a 45% ownership interest in an enterprise jointly owned with two other entities which operates aircraft
for the owners’ internal use. The arrangement allows each entity access to the aircraft and each entity pays for its
usage of the aircraft. Each quarter, the net operating costs of the enterprise are shared among the owners based
on their respective ownership percentage.
TSYS records its usage of the aircraft and its share of net operating costs of the enterprise in selling, general and
administrative expenses.
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