Green Dot 2011 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2011 Green Dot 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.

Page out of 108

  • 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

GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Note 10—Income Taxes (continued)
70
The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities
were as follows:
December 31,
2011
December 31,
2010
(In thousands)
Deferred tax assets:
Reserve for overdrawn accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,726 $ 4,811
State income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486 (8)
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,143 2,632
Fair value adjustment on acquired loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,308 —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,090 595
Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,753 8,030
Deferred tax liabilities:
Internal-use software costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,669) (3,254)
Deferred expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,987) (3,378)
Core deposit intangible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (162) —
Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,022) (1,338)
Total deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,840) (7,970)
Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,913 $60
Total net deferred tax assets and liabilities are included in our consolidated balance sheets as follows:
December 31,
2011
December 31,
2010
(In thousands)
Current net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,664 $ 5,398
Noncurrent net deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,751) (5,338)
Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,913 $60
In assessing whether a valuation allowance is needed for our deferred tax assets, we consider whether it is more
likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of our
deferred tax assets is dependent upon our generation of sufficient taxable income of the appropriate character during
the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred
tax liabilities and projected future taxable income in making this assessment. Based upon the level of our historical
taxable income and projections of our future taxable income over the periods in which the temporary differences
resulting in the deferred tax assets are deductible, we believe it is more likely than not that we will realize the benefits
of our deferred tax assets. Accordingly, we recorded no valuation allowance as of December 31, 2011 or 2010.
As of December 31, 2011, we had approximately $316,000 of net operating loss carryforwards, which are expected
to expire in 2021. As of December 31, 2010, we had no unutilized net operating loss carryforwards.
In accounting for income taxes, we follow the guidance related to uncertainty in income taxes. The guidance
prescribes a comprehensive framework for the financial statement recognition, measurement, presentation, and
disclosure of uncertain income tax positions that we have taken or anticipate taking in a tax return, and includes
guidance on de-recognition, classification, interest and penalties, accounting in interim periods, and transition rules.
We have concluded that we have no significant unrecognized tax benefits. We are subject to examination by the
Internal Revenue Service, or IRS, and various state tax authorities. Our consolidated federal income tax returns for
the years ended July 31, 2005 and 2008 have been examined by the IRS, and there have been no material changes
in our tax liabilities for those years. We generally remain subject to examination of our federal income tax returns for
the year ended July 31, 2008 and later years. We generally remain subject to examination of our various state income
tax returns for a period of four to five years from the respective dates the returns were filed.