NetSpend 2011 Annual Report Download - page 36
Download and view the complete annual report
Please find page 36 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
processing platforms and call center activities. Settlement (gains) and other losses during the year ended December 31, 2010 relate to a
$3.5 million loss related to a patent infringement dispute and a $0.8 million loss associated with a contractual dispute with an Issuing
Bank. Settlement (gains) and other losses during the year ended December 31, 2009 relate to $9.0 million of funds received from our
Issuing Banks for fee and chargeback recoveries and $1.2 million resulting from the settlement of certain litigation.
The loss on extinguishment of debt during the year ended December 31, 2010 relates to a $0.7 million write-off of the remaining
capitalized debt issuance costs associated with our prior credit facility.
The following is a reconciliation of our net income (loss), the most comparable GAAP measure, for the years ended December 31, 2011,
2010, 2009, 2008 and 2007 to Adjusted Net Income.
32
Year Ended December 31,
2011 2010 2009 2008 2007
(in thousands of dollars)
Net income (loss)
$
33,246
$
22,732
$
18,174
$
(11,645
)
$
14,726
Stock
-
based compensation expense
11,242
7,268
4,484
2,473
754
Goodwill and acquired intangible asset
impairment
—
—
—
26,285
—
Amortization of intangibles
3,524
3,245
3,516
3,224
2,385
Settlement (gains) and other losses
515
4,300
(10,229
)
—
—
Loss on extinguishment of debt
—
734
—
—
—
Total pre
-
tax adjustments
15,281
15,547
(2,229
)
31,982
3,139
Tax rate(1)
39.6
%
38.7
%
40.8
%
39.2
%
38.9
%
Tax adjustment
6,051
6,017
(909
)
12,537
1,221
Adjusted net income
$
42,476
$
32,262
$
16,854
$
7,800
$
16,644
Settlement (gains) and other losses of $0.5 million during the year ended December 31, 2011 primarily relate to
severance costs incurred in connection with the consolidation of some of our processing platforms and call center
activities. Settlement (gains) and other losses during the year ended December 31, 2010 relate to a $3.5 million loss
related to a patent infringement dispute and a $0.8 million loss associated with a contractual dispute with an Issuing
Bank. Settlement (gains) and other losses during the year ended December 31, 2009 relate to $9.0 million of funds
received from our Issuing Banks for fee and chargeback recoveries and $1.2 million resulting from the settlement of
certain litigation.
The loss on extinguishment of debt during the year ended December 31, 2010 relates to a $0.7 million write-off of the
remaining capitalized debt issuance costs associated with our prior credit facility.
(1) The 2008 tax rate was adjusted to remove the impact of the goodwill impairment charge recorded during 2008 in order to
establish the rate used to book taxes in the absence of this impairment charge consistent with the pre-
tax adjustments used
to calculate adjusted net income.