Green Dot 2015 Annual Report Download - page 66

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60
Note 1—Organization
Green Dot Corporation (“we,” “us” and “our” refer to Green Dot Corporation and its wholly-owned subsidiaries) is
a pro-consumer technology innovator with a mission to reinvent personal banking for the masses. Our products and
services include: Green Dot MasterCard and Visa-branded prepaid debit cards and several co-branded reloadable
prepaid card programs, collectively referred to as our GPR cards; Visa-branded gift cards; checking account products,
such as GoBank, an innovative checking account developed for use via mobile phones that is available at Walmart
and online; our proprietary swipe reload products referred to as our cash transfer products, which enable cash loading
and transfer services through our Green Dot Network; and tax refund processing services designed to facilitate the
secure receipt of a customer's income tax refund.
Our products and services are available to consumers through a large-scale "branchless bank" distribution network
of more than 100,000 U.S. locations, including retailers, neighborhood financial service center locations and tax
preparation offices, as well as online, in the leading app stores and through leading online tax preparation providers.
The Green Dot Network enables consumers to use cash to reload our prepaid debit cards or to transfer cash to any
of our Green Dot Network acceptance members, including competing prepaid card programs and other online accounts.
We are also the tax refund processing service provider for several leading consumer tax preparation companies.
We market our products and services to consumers in the United States. Our products are issued by our wholly-
owned subsidiary, Green Dot Bank and third-party issuing banks including The Bancorp Bank and Sunrise Banks,
N.A. We also have multi-year distribution arrangements with many large and medium-sized retailers, including Walmart,
Walgreens, CVS, Rite Aid, 7-Eleven, Kroger, Kmart, and Dollar Tree, and with various industry resellers, including
Blackhawk Network and InComm. We refer to participating retailers collectively as our “retail distributors.” Our tax
refund processing services are integrated into the offerings of partnering tax software companies, which enables us
to serve approximately 25,000 independent online and in-person tax preparers and accountants nationwide.
Note 2—Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation
Our consolidated financial statements include the results of Green Dot Corporation and our wholly-owned
subsidiaries. We prepared the accompanying consolidated financial statements in accordance with generally accepted
accounting principles in the United States of America, or GAAP. We eliminate all significant intercompany balances
and transactions in consolidation. We include the results of operations of acquired companies from the date of
acquisition.
Use of Estimates and Assumptions
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions
that affect the amounts reported in the consolidated financial statements, including the accompanying notes. We base
our estimates and assumptions on historical factors, current circumstances, and the experience and judgment of
management. We evaluate our estimates and assumptions on an ongoing basis. Actual results could differ from those
estimates.
Unrestricted Cash and Cash Equivalents and Federal Funds Sold
We consider all unrestricted highly liquid investments with an original maturity of three months or less to be
unrestricted cash and cash equivalents. Federal funds sold consist of unsecured overnight advances of excess balances
in our bank reserve account and are included in unrestricted cash and cash equivalents on our consolidated statements
of cash flows.
Investment Securities
Our investment portfolio is primarily comprised of fixed income securities. We classify these securities as available-
for-sale and report them at fair value with the related unrealized gains and losses, net of tax, included in accumulated
other comprehensive income, a component of stockholders’ equity. We classify investment securities with original
maturities greater than 90 days, but less than or equal to 365 days as current assets.