Green Dot 2013 Annual Report Download - page 87

GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
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Note 12—Earnings per Common Share (continued)
Year Ended December 31,
2013 2012 2011
(In thousands, except per share data)
Basic earnings per Class B common share
Net income $34,040 $47,219 $52,083
Income attributable to preferred stock (5,360) (7,599) (558)
Income attributable to other classes of common stock (26,645) (34,301) (29,613)
Net income allocated to Class B common stockholders $2,035 $5,319 $21,912
Weighted-average Class B shares issued and outstanding 2,603 4,801 17,718
Basic earnings per Class B common share $0.78 $1.11 $1.24
Diluted earnings per Class B common share
Net income allocated to Class B common stockholders $2,035 $5,319 $21,912
Re-allocated earnings (58)1,273 1,673
Diluted net income allocated to Class B common stockholders $1,977 $6,592 $23,585
Weighted-average Class B shares issued and outstanding 2,603 4,801 17,718
Dilutive potential common shares:
Stock options —1,349 2,104
Diluted weighted-average Class B shares issued and outstanding 2,603 6,150 19,822
Diluted earnings per Class B common share $0.76 $1.07 $1.19
As of December 31, 2013, 588,912 shares of Class A common stock issued to Walmart were subject to our
repurchase right. Basic and diluted EPS for these shares were the same as basic and diluted EPS for our Class A
common stock for the years ended December 31, 2013 and 2012.
We excluded from the computation of basic EPS all shares issuable under an unvested warrant to purchase
4,283,456 shares of our Class A common stock, as the related performance conditions had not been satisfied.
For the periods presented, we excluded all shares of convertible preferred stock and certain stock options
outstanding, which could potentially dilute basic EPS in the future, from the computation of diluted EPS as their effect
was anti-dilutive. The following table shows the weighted-average number of anti-dilutive shares excluded from the
diluted EPS calculation:
Year Ended December 31,
2013 2012 2011
(In thousands, except per share data)
Class A common stock
Options to purchase Class A common stock 994 1,408 258
Restricted stock units 39 26 —
Conversion of convertible preferred stock 6,859 6,859 451
Total options, restricted stock units and convertible preferred stock 7,892 8,293 709
Class B common stock
Options to purchase Class B common stock —122 5
Total options —122 5
Note 13—Fair Value Measurements
Under applicable accounting guidance, fair value is defined as the exchange price that would be received for an
asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants on the measurement date.
We determine the fair values of our financial instruments based on the fair value hierarchy established under
applicable accounting guidance which requires an entity to maximize the use of observable inputs and minimize the
use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value.