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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Note 2—Summary of Significant Accounting Policies (continued)
56
We consider an operating segment to be any component of our business whose operating results are regularly
reviewed by our chief operating decision-maker to make decisions about resources to be allocated to the segment
and assess its performance based on discrete financial information. Only those operating segments that meet certain
quantitative and qualitative criteria are reportable segments. Our Chief Executive Officer, our chief operating decision-
maker, reviews our operating results on an aggregate basis and manages our operations and the allocation of resources
as a single operating segment — prepaid cards and related services.
Change in Fiscal Year
On September 29, 2009, our board of directors approved a change to our fiscal year-end from July 31 to December
31. Included in this report is the transition period for the five months ended December 31, 2009. Accordingly, these
financial statements present our results of our operations, changes in redeemable convertible preferred stock and in
stockholders’ equity and cash flows for the years ended December 31, 2011 and 2010, the five months ended December
31, 2009 and the year ended July 31, 2009.
Unaudited Comparative Financial Statements
As a result of our change in fiscal year-end, we have presented below, for comparative purposes, our unaudited
consolidated statement of operations and condensed consolidated statement of cash flows for the five months ended
December 31, 2008. In our opinion, the unaudited consolidated financial information reflects all adjustments, consisting
of normal and recurring adjustments, necessary for the fair presentation of the results of our operations and our cash
flows for the five months ended December 31, 2008.
Five Months Ended
December 31, 2008
(In thousands)
Operating revenues:
Card revenues and other fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 46,460
Cash transfer revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,391
Interchange revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,212
Total operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,063
Operating expenses:
Sales and marketing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,001
Compensation and benefits expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,409
Processing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,765
Other general and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,463
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,638
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,425
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1)
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,679
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,424
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,255
Dividends, accretion, and allocated earnings of preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,153)
Net loss allocated to common stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(898)