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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Note 18—Significant Customer Concentration (continued)
83
Revenues derived from our products sold at our four largest retail distributors represented the following percentages
of our total operating revenues:
Year Ended December 31, Five Months Ended
December 31, 2009
Year Ended
July 31, 20092011 2010
Walmart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61% 63% 63% 56%
Three other largest retail distributors, as a group . . . 20% 20% 23% 27%
Excluding stock-based retailer incentive compensation of $17.3 million and $13.4 million for the years ended
December 31, 2011 and 2010, respectively, revenues derived from our products sold at our four largest retail distributors
represented the following percentages of our total operating revenues:
Year Ended December 31, Five Months Ended
December 31, 2009
Year Ended
July 31, 20092011 2010
Walmart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62% 64% 63% 56%
Three other largest retail distributors, as a group . . . 19% 18% 23% 27%
The concentration of GPR cards activated (in units) and the concentration of sales of cash transfer products (in
units) derived from our products sold at our four largest retail distributors was as follows:
Year Ended December 31, Five Months Ended
December 31, 2009
Year Ended
July 31, 20092011 2010
Concentration of GPR cards activated (in units) . . . . 80% 84% 94% 95%
Concentration of sales of cash transfer products (in
units) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90% 93% 93% 92%
Settlement assets derived from our products sold at our four largest retail distributors comprised the following
percentages of the settlement assets recorded on our consolidated balance sheet:
December 31,
2011
December 31,
2010
Walmart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33% 26%
Three other largest retail distributors, as a group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39% 31%
During the years ended December 31, 2011 and 2010, the five months ended December 31, 2009, and the year
ended July 31, 2009, the substantial majority of the customer funds underlying our products were held in bank accounts
at two card issuing banks. These funds are held in trust for the benefit of the customers, and we have no legal rights
to the customer funds or deposits at the card issuing banks. Additionally, we have receivables due from these card
issuing banks included in accounts receivable, net, on our consolidated balance sheets. The failure of either of these
card issuing banks could result in significant business disruption, a potential material adverse affect on our ability to
service our customers, potential contingent obligations by us to customers and material write-offs of uncollectible
receivables due from these card issuing banks.
Note 19—Regulatory Requirements
Our subsidiary bank, Green Dot Bank, is a member bank of the Federal Reserve System and our primary regulator
is the Federal Reserve Board. We are subject to various regulatory capital requirements administered by the federal
banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory actions by regulators
that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines,
we must meet specific capital guidelines that involve quantitative measures of the assets, liabilities and certain off-
balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are
also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
As of December 31, 2011, we were categorized as well capitalized under the regulatory framework for prompt
corrective action. To be categorized as well capitalized, we must maintain specific total risk-based, Tier I risk-based,
and Tier I leverage ratios as set forth in the table below. There are no conditions or events since December 31, 2011