Green Dot 2013 Annual Report Download - page 84

GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
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Note 11—Income Taxes (continued)
The tax effects of temporary difference that give rise to significant portions of our deferred tax assets and liabilities
were as follows:
December 31,
2013 2012
(In thousands)
Deferred tax assets:
Net operating loss carryforwards $12,276 $13,655
Stock-based compensation 6,397 7,057
Reserve for overdrawn accounts 4,088 6,130
Accrued liabilities 5,354 3,191
Tax credit carryforwards 2,298 —
Other 984 1,272
Gross deferred tax assets 31,397 31,305
Valuation allowance (1,228) (1,262)
Total deferred tax assets, net of valuation allowance $30,169 $30,043
Deferred tax liabilities:
Internal-use software costs $10,587 $9,986
Property and equipment, net 5,534 6,013
Deferred expenses 5,083 4,013
Intangible assets 1,156 1,386
Gift card revenue 6,637 1,063
Other 1,526 475
Total deferred tax liabilities $30,523 $22,936
Net deferred tax (liabilities) assets $(354)$7,107
Total net deferred tax assets and liabilities are included in our consolidated balance sheets as follows:
December 31,
2013 2012
(In thousands)
Current net deferred tax (liabilities) assets $ (3,716) $2,478
Noncurrent net deferred tax assets 3,362 4,629
Net deferred tax (liabilities) assets $ (354)$7,107
We establish a valuation allowance when we consider it more-likely-than-not that some portion or all of the deferred
tax assets will not be realized. We believe uncertainty exists regarding the realizability of certain operating losses and
have, therefore, established a valuation allowance for this portion of the deferred tax asset. Future changes in the
valuation allowance associated with these deferred tax assets will be recognized as a reduction or increase to income
tax expense.
We are subject to examination by the Internal Revenue Service, or IRS, and various state tax authorities. Our
consolidated federal income tax return for the year ended July 31, 2008 has been examined by the IRS, and there
were no material changes in our tax liabilities for that year. Our consolidated federal income tax returns for the year
ended July 31, 2009, the five-months ended December 31, 2009 and the years ended December 31, 2010 and 2011
are currently under examination by the IRS. We remain subject to examination of our federal income tax returns for
the year ended December 31, 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.
As of December 31, 2013, we have net operating loss carryforwards of approximately $29.7 million and $28.4
million for federal and state tax purposes, respectively, which will be available to offset future income. If not used, these
carryforwards will expire between 2025 and 2031. In addition, we have state business tax credits of approximately
$1.2 million that will expire between 2028 and 2033 and other state business tax credits of approximately $1.1 million
that can be carried forward indefinitely.