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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
79
Note 11—Income Taxes (continued)
The deferred tax assets and related valuation allowances recognized for the net operating loss and tax credit
carryforwards were as follows:
December 31, 2012
Deferred Tax Asset Valuation
Allowance Net Deferred
Tax Asset First Year Expiring
(In thousands)
Net operating losses $ 13,655 $(956) $ 12,699 After 2024
General business credits 306 (306)—After 2024
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.
The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows:
Year Ended December 31,
2012 2011 2010
(In thousands)
Beginning balance $ — $—$—
Increases related to positions taken during prior years 970 — —
Increases related to positions taken during the current year 511 — —
Ending balance $1,481 $—$—
The total amount of unrecognized tax benefits that, if recognized, would
affect the effective tax rate $1,481 $—$—
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. Our consolidated federal income tax
returns for the year ended July 31, 2009, the five-months ended December 31, 2009 and the year ended December
31, 2010 are currently under examination by the IRS. We remain subject to examination of our federal income tax
returns for the year ended December 31, 2011 and 2012. 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.