Green Dot 2011 Annual Report Download - page 53

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Cash Flows from Investing Activities
Our $50.4 million of net cash used in investing activities in the year ended December 31, 2011 reflects purchases
of available-for-sale investment securities of $45.1 million, payments for acquisition of property and equipment of $23.1
million and an increase in restricted cash of $7.8 million, partially offset by proceeds from the maturity of available-for-
sale investment securities of $20.2 million. In March 2011, we increased our cash collateral requirements on our line
of credit from $5.0 million to $10.0 million. We present our cash collateral on our consolidated balance sheets as
restricted cash. Our $3.2 million of net cash provided by investing activities in the year ended December 31, 2010
reflects a decrease in restricted cash of $10.2 million offset by payments for acquisition of property and equipment of
$13.5 million. In December 2010, we reduced our cash collateral on our line of credit from $15.0 million to $5.0 million.
Our net cash used in investing activities in the five months ended December 31, 2009 consisted almost entirely of
payments for acquisition of property and equipment of $5.1 million. Our net cash used in investing activities in the year
ended July 31, 2009 consisted of an increase in restricted cash of $13.0 million and payments for acquisition of property
and equipment of $6.4 million.
Cash Flows from Financing Activities
Our $14.3 million of net cash provided by financing activities in the year ended December 31, 2011 was the result
of excess tax benefits of $3.0 million and proceeds from the exercise of stock options and the issuance of shares under
our employee stock purchase plan of $6.1 million. Our $30.9 million of net cash provided by financing activities for the
year ended December 31, 2010 was primarily the result of proceeds from the exercise of stock options and warrants.
Our $8.7 million of net cash provided by financing activities for the five months ended December 31, 2009 was the
result of the repayment to us of $5.9 million of related party notes receivable and excess tax benefits and proceeds
from the exercise of stock options for an aggregate of $2.8 million. Our $28.6 million of net cash used in financing
activities in the year ended July 31, 2009 was primarily associated with the redemption in full of our Series D redeemable
preferred stock. We receive cash from the exercise of stock options and the sale of Class A common stock under our
employee stock purchase plan. While we expect to continue to receive these proceeds in future periods, the timing
and amount of such proceeds are difficult to predict and are contingent on a number of factors including the price of
our Class A common stock, the number of employees participating in our equity incentive plan and our employee stock
purchase plan and general market conditions
Commitments
We anticipate that we will continue to purchase property and equipment as necessary in the normal course of our
business. The amount and timing of these purchases and the related cash outflows in future periods is difficult to
predict and is dependent on a number of factors including the hiring of employees, the rate of change of computer
hardware and software used in our business, the leasing of a new office facility and our business outlook. In 2012, we
expect to purchase furniture and equipment and make leasehold improvements to our new headquarters in Pasadena,
California.
We have used cash to acquire businesses and technologies and we anticipate that we will continue to do so in
the future. The nature of these transactions makes it difficult to predict the amount and timing of such cash requirements.
We may also be required to raise additional financing to complete future acquisitions
Contractual Obligations
Our contractual commitments will have an impact on our future liquidity. The following table summarizes our
contractual obligations, including both on- and off-balance sheet transactions that represent material expected or
contractually committed future obligations, at December 31, 2011. We believe that we will be able to fund these
obligations through cash generated from operations and from our existing cash balances.