Green Dot 2014 Annual Report Download - page 88

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Note 13—Income Taxes
The components of income tax expense included in our consolidated statements of operations were as follows:
Year Ended December 31,
2014 2013 2012
(In thousands)
Current:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,382 $11,880 $21,322
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,368 1,116 1,805
Current income tax expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,750 12,996 23,127
Deferred:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 760 6,776 5,931
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (224)(1,312)(139)
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (73)— —
Deferred income tax expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463 5,464 5,792
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26,213 $18,460 $28,919
Income tax expense differs from the amount computed by applying the statutory federal income tax rate to income
before income taxes. The sources and tax effects of the differences are as follows:
Year Ended December 31,
2014 2013 2012
U.S. federal statutory tax rate 35.0%35.0%35.0%
State income taxes, net of federal benefit 1.1 (0.2)1.9
General business credits (1.3)(2.3)(0.4)
Employee stock-based compensation 0.7 1.4 1.4
Non-deductible transaction costs 1.8 — —
Other 0.7 1.2 0.3
Effective tax rate 38.0%35.1%38.2%
The increase in the effective tax rate for the year ended December 31, 2014 as compared to the year ended
December 31, 2013 is primarily attributable to certain non-deductible transaction costs incurred during the year and
fewer general business credits. We recognized a discrete benefit in the first quarter of 2013 related to the reinstatement
of 2012 general business credits.
The tax effects of temporary difference that give rise to significant portions of our deferred tax assets and liabilities
were as follows:
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
80