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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
65
Note 2—Summary of Significant Accounting Policies (continued)
In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement: Amendments to Achieve Common Fair
Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which converges common fair value
measurement and disclosure requirements in accordance with GAAP and International Financial Reporting Standards,
or IFRS. We adopted this ASU in the first quarter of 2012. The adoption of this standard did not have a significant
impact on our consolidated financial statements.
In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which provides entities testing
goodwill for impairment with an option of performing a qualitative assessment before having to calculate the fair value
of a reporting unit. If an entity determines, on the basis of qualitative factors, that the fair value of the reporting unit is
more-likely-than-not less than the carrying amount, the existing quantitative impairment test is required. Otherwise,
no further impairment testing is required. We adopted this ASU in the first quarter of 2012. The adoption of this standard
did not have any impact on our consolidated financial statements.
In July 2012, the FASB issued ASU 2012-02, Intangibles—Goodwill and Other, allowing an entity to perform a
qualitative impairment assessment of indefinite-lived intangible assets before proceeding to the two-step impairment
test. If the entity determines, on the basis of qualitative factors, that the fair value of the indefinite-lived intangible asset
is not more likely than not (i.e., a likelihood of more than 50 percent) impaired, the entity would not need to calculate
the fair value of the asset. In addition, the ASU does not amend the requirement to test these assets for impairment
between annual tests if there is a change in events or circumstances; however, it does revise the examples of events
and circumstances that an entity should consider in interim periods. ASU 2012-02 became effective for annual and
interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption being
permitted. Our adoption of this ASU is not expected to have a material impact on our consolidated financial statements.
Note 3 — Investment Securities
Our available-for-sale investment securities were as follows:
Amortized cost Gross unrealized
gains Gross unrealized
losses Fair value
December 31, 2012 (In thousands)
Corporate bonds $37,320 $ 39 $ (2) $ 37,357
Commercial paper 55,733 17 (2) 55,748
Negotiable certificate of deposit 4,400 14 — 4,414
U.S. treasury notes 22,258 9— 22,267
Agency securities 25,845 23 (1) 25,867
Municipal bonds 11,528 43 (3) 11,568
Asset-backed securities 26,533 33 — 26,566
Total fixed income securities $183,617 $178 $ (8) $ 183,787
December 31, 2011
Corporate bonds $ 16,307 $ 27 $ (1) $ 16,333
Commercial paper 4,998 1— 4,999
Negotiable certificate of deposit 3,500 — — 3,500
Agency securities 3,979 12 (4) 3,987
Municipal bonds 2,379 13 (1) 2,391
Total fixed income securities $ 31,163 $ 53 $ (6) $ 31,210