Green Dot 2010 Annual Report Download - page 90

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Note 10 — Stock-Based Compensation (continued)
The following table summarizes information with respect to stock options outstanding and exercisable
at December 31, 2010:
Exercise Price
Number
Outstanding
Weighted-
Average
Remaining
Contractual
Life (in Years)
Weighted-
Average
Exercise
Price
Number
Currently
Exercisable
Weighted-
Average
Remaining
Contractual
Life (in Years)
Weighted-
Average
Exercise
Price
Options Outstanding Options Currently Exercisable
0.83-1.41 . . . . . . . . . 418,805 4.00 $ 1.20 418,805 4.00 $ 1.20
1.55-4.00 . . . . . . . . . 548,236 3.49 1.60 548,236 3.49 1.60
4.64-10.75 . . . . . . . . 1,681,350 7.29 6.22 1,159,202 7.20 5.57
10.84-17.19 . . . . . . . 177,682 8.51 15.84 50,251 8.53 16.20
20.01-32.23 . . . . . . . 1,402,536 8.91 21.07 361,188 8.90 21.00
36.00-46.15 . . . . . . . 114,500 9.65 40.43 — — —
4,343,109 2,537,682
Tax benefits realized from the exercise of stock options were $24.8 million for the year ended
December 31, 2010, $1.9 million for the five months ended December 31, 2009 and $0 and $0.6 million for
the years ended July 31, 2009 and 2008, respectively. Cash proceeds from the exercise of stock options
were $5.6 million for the year ended December 31, 2010, $0.9 million for the five months ended
December 31, 2009 and $0.1 million and $1.2 million for the years ended July 31, 2009 and 2008,
respectively. The aggregate unrecognized compensation cost for unvested stock options issued subse-
quent to August 1, 2006, expected to be recognized in compensation expense in future periods was
$14.3 million at December 31, 2010, and the related weighted-average period over which it is expected to
be recognized was estimated at 2.8 years. No stock-based compensation expense was reflected in our
consolidated statements of operations for those stock option grants issued prior to August 1, 2006. At
December 31, 2010, 955,407 outstanding options were granted prior to August 1, 2006.
Stock-Based Retailer Incentive Compensation
As discussed in Note 9 —Stockholders’ Equity, we issued Walmart 2,208,552 shares of our Class A
common stock. We recognize the fair value of 36,810 shares each month over the 60-month term of the
commercial agreement. An early expiration of our right to repurchase as described above would, however,
result in the recognition of the fair value of all the shares still subject to repurchase on the date of the
expiration. We currently assess an early expiration of our repurchase right to be remote. We record the fair
value recognized as stock-based retailer incentive compensation, a contra-revenue component of our total
operating revenues. We recognize monthly the fair value of the shares for which our right to repurchase
has lapsed using the then-current fair market value of our Class A common stock. We recognized
$13.4 million of stock-based retailer incentive compensation for the year ended December 31, 2010.
Note 11 — Earnings per Common Share
We calculate EPS using the two-class method. Refer to Note 2 — Summary of Significant Accounting
Policies for a discussion of the calculation of EPS. The calculation of basic EPS and diluted EPS for the
81
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)