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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
65
Note 2—Summary of Significant Accounting Policies (continued)
Recent Accounting Pronouncements
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 did not have a material impact on our consolidated financial statements.
In February 2013, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or
ASU, 2013-02, Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive
Income, which requires companies to report, in one place, information about significant reclassifications out of
accumulated other comprehensive income, or AOCI, and disclose more information about changes in AOCI balances.
We adopted this ASU in the first quarter of 2013. The adoption of this standard did not have a significant impact on
our consolidated financial statements.
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating
Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides guidance for the financial
statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a
tax credit carryforward exists. We will adopt the standard effective January 1, 2014. Our adoption of this ASU is not
expected to have a material impact on our consolidated financial statements.
Note 3 — Investment Securities
Our available-for-sale investment securities were as follows:
Amortized cost Gross unrealized
gains Gross unrealized
losses Fair value
(In thousands)
December 31, 2013
Corporate bonds $70,965 $ 45 $ (13) $ 70,997
Commercial paper 49,307 15 (1) 49,321
Negotiable certificate of deposit 4,400 3— 4,403
U.S. Treasury notes 14,265 14 (1) 14,278
Agency securities 14,946 13 — 14,959
Mortgage-backed securities 4,169 — (168)4,001
Municipal bonds 19,017 28 (14)19,031
Asset-backed securities 21,750 9 (5) 21,754
Total investment securities $198,819 $127 $(202) $ 198,744
December 31, 2012
Corporate bonds $ 37,320 $ 39 $ (2) $ 37,357
Commercial paper 55,733 17 (2) 55,748
Negotiable certificate of deposit 4,400 14 — 4,414
U.S. Treasury notes 22,258 9— 22,267
Agency securities 25,845 23 (1) 25,867
Municipal bonds 11,528 43 (3) 11,568
Asset-backed securities 26,533 33 — 26,566
Total investment securities $ 183,617 $178 $ (8) $ 183,787