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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
81
Note 12—Earnings per Common Share (continued)
We excluded from the computation of basic EPS all shares issuable under an unvested warrant to purchase
4,283,456 shares of our Class B common stock, as the related performance conditions had not been satisfied.
For the periods presented, we excluded all shares of convertible preferred stock and certain stock options
outstanding, which could potentially dilute basic EPS in the future, from the computation of diluted EPS as their effect
was anti-dilutive. The following table shows the weighted-average number of anti-dilutive shares excluded from the
diluted EPS calculation:
Year Ended December 31,
2012 2011 2010
Class A common stock (In thousands)
Options to purchase Class A common stock 1,408 258 22
Restricted stock units 26 — —
Conversion of convertible preferred stock 6,859 451 —
Total options, restricted stock units and convertible preferred stock 8,293 709 22
Class B common stock
Options to purchase Class B common stock 122 511
Conversion of convertible preferred stock —— 13,803
Total options 122 5 13,814
Note 13—Fair Value Measurements
As of December 31, 2012 and 2011, our assets carried at fair value on a recurring basis were as follows:
Level 1 Level 2 Level 3 Total Fair Value
December 31, 2012 (In thousands)
Corporate bonds $ —$37,357 $—$37,357
Commercial paper — 55,748 — 55,748
Negotiable certificate of deposit — 4,414 — 4,414
U.S. treasury notes — 22,267 — 22,267
Agency securities — 25,867 — 25,867
Municipal bonds — 11,568 — 11,568
Asset-backed securities — 26,566 — 26,566
Total $ —$ 183,787 $ —$183,787
December 31, 2011
Corporate bonds $ —$16,333 $—$16,333
Commercial paper — 4,999 — 4,999
Negotiable certificate of deposit — 3,500 — 3,500
Agency securities — 3,987 — 3,987
Municipal bonds — 2,391 — 2,391
Total $ —$31,210 $—$31,210
We based the fair value of our fixed income securities held as of December 31, 2012 and 2011 on quoted prices
in active markets for similar assets. We had no transfers between Level 1, Level 2 or Level 3 assets during the years
ended December 31, 2012 and 2011.
Note 14—Fair Value of Financial Instruments
The following describes the valuation technique for determining the fair value of financial instruments, whether or
not such instruments are carried on our consolidated balance sheets.
Short-term Financial Instruments
Our short-term financial instruments consist principally of unrestricted and restricted cash and cash equivalents,
federal funds sold, settlement assets and obligations, and obligations to customers. These financial instruments are
short-term in nature, and, accordingly, we believe their carrying amounts approximate their fair values. Under the fair
value hierarchy, these instruments are classified as Level 1.