Green Dot 2014 Annual Report Download - page 93

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accounts and uncollectible trade receivables. With respect to our loan portfolio, approximately 93.8% of our borrowers
reside in the state of Utah and approximately 41.5% in the city of Provo. Consequently, this loan portfolio is susceptible
Note 17—Concentrations of Credit Risk (continued)
to any adverse market or environmental conditions that may impact this specific geographic region. Credit risk for our
settlement assets is concentrated with our retail distributors, which we periodically monitor.
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
85
Note 18—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
suspend discretionary employer matching contributions, however, in March 2014, employer contributions were
reinstated equal to 25% of the first 5% of a participant's eligible compensation. Our contributions are allocated in the
same manner as that of the participant’s elective contributions. We made contributions to the plan of $0.5 million, $0.1
million, and $1.2 million for the years ended December„31, 2014, 2013 and 2012, 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 19—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. Through our wholly owned subsidiaries, we also lease various office facilities and
maintain smaller administrative or project offices. Our total rental expense for these and former leases amounted to
$5.4 million, $5.3 million and $6.4 million for the years ended December„31, 2014, 2013 and 2012, respectively.
At December„31, 2014, the future minimum aggregate rental commitment under all operating leases and minimum
annual payments through various agreements with vendors and retail distributors was as follows:
Operating Leases
Vendor/Retail Distributor
Commitments
Year ending December 31, (In thousands)
2015 $7,147 $23,642
2016 7,460 25,998
2017 6,773 16,005
2018 5,763 7,610
2019 5,618 30
Thereafter 16,733 —
Total of future commitments $49,494 $73,285
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. These future minimum obligations
are included in our vendor and retail distributor commitments.
We monitor the laws of all 50 states to identify state laws or regulations that apply (or may apply) to our products
and services. 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.