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36
Accumulated Other Comprehensive Income. ASU 2011-12 defers the requirement to present components of
reclassifications out of accumulated other comprehensive income on the face of the income statement. We adopted
all other components of ASU 2011-05 in the first quarter of 2012. The adoption did not have a significant impact on
our consolidated financial statements. In February 2013, the FASB issued ASU 2013-02, which established the effective
date for the requirement to present components of reclassifications out of accumulated other comprehensive income
on the face of the income statement. Our adoption of this ASU on January 1, 2013 is not expected to have a material
impact on our consolidated financial statements.
In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement: Amendments to Achieve Common Fair
Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which converges common fair value
measurement and disclosure requirements in accordance with GAAP and International Financial Reporting Standards,
or IFRS. We adopted this ASU in the first quarter of 2012. The adoption of this standard did not have a significant
impact on our consolidated financial statements.
In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which provides entities testing
goodwill for impairment with an option of performing a qualitative assessment before having to calculate the fair value
of a reporting unit. If an entity determines, on the basis of qualitative factors, that the fair value of the reporting unit is
more-likely-than-not less than the carrying amount, the existing quantitative impairment test is required. Otherwise,
no further impairment testing is required. We adopted this ASU in the first quarter of 2012. The adoption of this standard
did not have any impact on our consolidated financial statements.
In July 2012, the FASB issued ASU 2012-02, Intangibles—Goodwill and Other, allowing an entity to perform a
qualitative impairment assessment of indefinite-lived intangible assets before proceeding to the two-step impairment
test. If the entity determines, on the basis of qualitative factors, that the fair value of the indefinite-lived intangible asset
is not more likely than not (i.e., a likelihood of more than 50 percent) impaired, the entity would not need to calculate
the fair value of the asset. In addition, the ASU does not amend the requirement to test these assets for impairment
between annual tests if there is a change in events or circumstances; however, it does revise the examples of events
and circumstances that an entity should consider in interim periods. ASU 2012-02 became effective for annual and
interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption being
permitted. Our adoption of this ASU is not expected to have a material impact on our consolidated financial statements.
Comparison of Years Ended December 31, 2012 and 2011
Operating Revenues
The following table presents a breakdown of our operating revenues among card revenues and other fees, cash
transfer revenues and interchange revenues as well as contra-revenue items:
Years Ended December 31,
2012 2011
Amount % of Total
Operating Revenues Amount % of Total
Operating Revenues
(In thousands, except percentages)
Operating revenues:
Card revenues and other fees $ 224,745 41.1%$ 209,489 44.8%
Cash transfer revenues 165,232 30.2 134,143 28.7
Interchange revenues 164,559 30.2 141,103 30.2
Stock-based retailer incentive compensation (8,251) (1.5)(17,337) (3.7)
Total operating revenues $ 546,285 100.0%$ 467,398 100.0%
Card Revenues and Other Fees — Card revenues and other fees totaled $224.7 million for the year ended
December 31, 2012, an increase of $15.3 million, or 7%, from the comparable period in 2011. The increase was
primarily the result of an increase in monthly maintenance fee revenues, driven by period-over-period growth of 4%
in the number of active cards in our portfolio. Card revenues and other fees also increased as a result of growth in
new card fee revenues, which was driven by higher numbers of card activations from distribution channels in which
we assess new card fees. The increases were partially offset by a decrease in ATM fee revenues, which was primarily
driven by the discontinuation of the TurboTax program, as cardholders under this program typically performed more
ATM transactions than the rest of our active card base. Additionally, we began offering our Walmart MoneyCard
customers access to surcharge-free transactions via the nationwide MoneyPass ATM network in late June 2012, which
also contributed to the decrease in ATM fee revenues. In addition, we believe our card revenues and other fees for
the second half of 2012 were adversely impacted by changes in our competitive environment and our implementation
of voluntary risk control mechanisms, as discussed above under “Financial Results and Trends.”