Green Dot 2013 Annual Report Download - page 90

GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
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Note 17—Defined Contribution Plan
On January 1, 2004, we established a defined contribution savings plan under Section 401(k) of the Internal
Revenue Code. Employees who have attained at least 21 years of age are generally eligible to participate in the plan
on the first day of the calendar month following the month in which they commence service with us. Participants may
make pre-tax contributions to the plan from their eligible earnings up to the statutorily prescribed annual limit on pre-
tax contributions under the code. We may contribute to the plan at the discretion of our board of directors. Effective
January 1, 2010, our board elected to include a discretionary employer matching contribution equal to 50% of the first
6% of the participant’s eligible compensation as defined by the Plan. Effective January 1, 2013, our board elected to
cancel the discretionary employer matching contributions. Our contributions are allocated in the same manner as that
of the participant’s elective contributions. We made contributions to the plan of $0.1 million, $1.2 million, and $0.9
million for the years ended December 31, 2013, 2012 and 2011, respectively. Amounts contributed in the year ended
December 31, 2013 were related to matching contributions on employee contributions during the year ended
December 31, 2012 which were not received until 2013.
Note 18—Commitments and Contingencies
In December 2011, we entered into a ten-year office lease for 140,000 square feet of office space in Pasadena,
California. This facility serves as our corporate headquarters. The initial term of the lease is ten years and is scheduled
to expire on October 31, 2022. We are also bound to a property sub-lease agreement of approximately 5,000 square
feet that expired in December 2013 and maintain smaller administrative or project offices. Our total rental expense for
these and former leases amounted to $5.3 million, $6.4 million and $2.6 million for the years ended December 31,
2013, 2012 and 2011, respectively.
At December 31, 2013, the future minimum aggregate rental commitment under all operating leases and minimum
annual payments through various agreements with vendors and retail distributors was:
Operating Leases Vendor/Retail Distributor Commitments
Year ending December 31, (In thousands)
2014 $ 4,187 $9,558
2015 4,596 1,910
2016 4,726 6,550
2017 4,186 1,625
2018 4,156 12,600
Thereafter 17,108 3,150
Total of future commitments $ 38,959 $ 35,393
In the event we terminate our processing services agreement for convenience, we are required to pay a single
lump sum equal to any minimum payments remaining on the date of termination.
We monitor the laws of all 50 states to identify state laws or regulations that apply to prepaid debit cards and other
stored value products. Many state laws do not specifically address stored value products and what, if any, legal or
regulatory requirements (including licensing) apply to the sale of these products. We have obtained money transmitter
licenses (or similar such licenses) where applicable, based on advice of counsel or when we have been requested to
do so. If we were found to be in violation of any laws and regulations governing banking, money transmitters, electronic
fund transfers, or money laundering in the United States or abroad, we could be subject to penalties or could be forced
to change our business practices.
In the ordinary course of business, we are a party to various legal proceedings. We review these actions on an
ongoing basis to determine whether it is probable that a loss has occurred and use that information when making
accrual and disclosure decisions. We have not established reserves or possible ranges of losses related to these
proceedings because, at this time in the proceedings, the matters do not relate to a probable loss and/or the amounts
are not reasonably estimable.