Green Dot 2012 Annual Report Download - page 2

Our consolidated nancial statements are prepared in accordance with accounting principles generally
accepted in the United States of America (GAAP). To supplement these nancial statements, we use measures
of operating results that are adjusted to exclude, among other things, stock-based retailer incentive
compensation expense. The letter to stockholders contained in this annual report (the stockholder letter)
includes non-GAAP total operating revenues. This non-GAAP nancial measure is not calculated or presented
in accordance with, and is not an alternative or substitute for, a nancial measure prepared in accordance with
GAAP, and should be read only in conjunction with our nancial measure prepared in accordance with GAAP.
Our non-GAAP nancial measures may be different from similarly-titled non-GAAP nancial measures used by
other companies.
We believe that the presentation of non-GAAP nancial measures provide useful information to management
and investors regarding underlying trends in our consolidated nancial condition and results of operations. We
also believe that the non-GAAP nancial measure contained in the stockholder letter is useful to investors in
evaluating our operating performance for the following reason:
• Stock-based retailer incentive compensation is a non-cash GAAP accounting charge that is an offset to our
actual revenues from operations as we have historically calculated them. This charge results from the
monthly lapsing of our right to repurchase a portion of the 2,208,552 shares we issued to our largest retail
distributor, Walmart, in May 2010. By adding back this charge to our GAAP 2010 and future total operating
revenues, investors can make direct comparisons of our revenues from operations prior to and after May
2010 and thus more easily perceive trends in our core operations. Further, because the monthly charge is
based on the then-current fair market value of the shares as to which our repurchase right lapses, adding
back this charge eliminates uctuations in our operating revenues caused by variations in our month-end
stock prices and thus provides insight on the operating revenues directly associated with those core
operations.
Our management regularly uses this supplemental non-GAAP nancial measure internally to understand,
manage and evaluate our business and make operating decisions. For additional information regarding our use
of non-GAAP nancial measures and the items excluded by us from one or more of our non-GAAP nancial
measures, investors are encouraged to review the reconciliations of our non-GAAP nancial measures to the
comparable GAAP nancial measures, which can be found by clicking on "Financial Information" in the Investor
Relations section of our website at ir.greendot.com.
(Unaudited)
$ 546,285
8,251
$ 554,536
$ 467,398
17,3 37
$ 484,735
$ 363,888
13,369
$ 377,257
Total operating revenues
Stock-based retailer incentive compensation *
Non-GAAP total operating revenues
* We do not include any income tax impact of the associated non-GAAP adjustment to non-GAAP total operating revenues because this non-GAAP nancial
measure is provided before income tax expense.
(In thousands)