NetSpend 2011 Annual Report Download - page 103
Download and view the complete annual report
Please find page 103 of the 2011 NetSpend annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
 |
 |
Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2011, 2010 and 2009
NOTE 16: INCOME TAXES (Continued)
used for income tax purposes. Significant components of the Company's deferred taxes as of December 31, 2011 and 2010 are as follows:
Deferred tax assets at December 31, 2011 were reduced by a valuation allowance relating to the unrealized loss on the Company's long-
term investment in MFG. Due to the fact that this loss is capital in nature and could only be utilized to offset future capital gains, the Company
does not believe that it is more likely than not that the benefit of this asset will be realized in the foreseeable future. The Company will continue
to assess the potential realization of this asset and will adjust the valuation allowance in future periods as appropriate.
Upon the acquisition of Skylight in 2008, the Company purchased federal net operating losses and credits which were subject to use
limitations under provisions of the Internal Revenue Code. As of December 31, 2011, the Company had approximately $0.2 million of federal
net operating losses remaining with limitations on the amount that can be recognized in any annual period.
94
December 31,
2011 2010
(in thousands of
dollars)
Deferred tax assets
Current deferred tax assets
Deferred revenue
$
1,010
$
1,223
Accrued expenses
2,937
2,522
Prepaid card supply costs
181
161
Net operating loss and tax credit carryforwards
10
10
Total current deferred tax assets
4,138
3,916
Non
-
current deferred tax assets
Accrued expenses
580
72
Net operating loss and tax credit carryforwards
176
230
Unrealized loss on long
-
term investment
263
413
Stock compensation
5,048
2,575
Gross non
-
current deferred tax assets
6,067
3,290
Valuation allowance
(263
)
(413
)
Total non
-
current deferred tax assets
5,804
2,877
Deferred tax liabilities
Noncurrent deferred tax liabilities
Acquired intangibles
(8,101
)
(9,278
)
Depreciation and amortization
(5,134
)
(3,454
)
Total non
-
current deferred tax liabilities
(13,235
)
(12,732
)
Net current deferred tax asset
4,138
3,916
Net non
-
current deferred tax liability
$
(7,431
)
$
(9,855
)