Green Dot 2015 Annual Report Download - page 95

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Note 19—Commitments and Contingencies (continued)
At December 31, 2015, 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)
2016 $ 8,352 $29,101
2017 7,136 14,359
2018 5,788 7,274
2019 5,618 910
2020 5,745 —
Thereafter 10,988 —
Total of future commitments $ 43,627 $ 51,644
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 and estimable 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.
During the year ended December 31, 2014, we received net cash proceeds of $6.4 million in connection with the
settlement of a lawsuit. We recorded this settlement, net of legal costs incurred in connection with the litigation, as
other income on our consolidated statements of operations.
From time to time we enter into contracts containing provisions that contingently require us to indemnify various
parties against claims from third parties. These contracts primarily relate to: (i) contracts with our card issuing banks,
under which we are responsible to them for any unrecovered overdrafts on cardholders’ accounts; (ii) certain real estate
leases, under which we may be required to indemnify property owners for environmental and other liabilities, and other
claims arising from our use of the premises; (iii) certain agreements with our officers, directors, and employees, under
which we may be required to indemnify these persons for liabilities arising out of their relationship with us; and (iv)
contracts under which we may be required to indemnify our retail distributors, suppliers, vendors and other parties with
whom we have contracts against claims arising from certain of our actions, omissions, violations of law and/or
infringement of patents, trademarks, copyrights and/or other intellectual property rights.
Generally, a maximum obligation under these contracts is not explicitly stated. Because the obligated amounts
associated with these types of agreements are not explicitly stated, the overall maximum amount of the obligation
cannot be reasonably estimated. With the exception of overdrafts on cardholders’ accounts, historically, we have not
been required to make payments under these and similar contingent obligations, and no liabilities have been recorded
for these obligations in our consolidated balance sheets.
For additional information regarding overdrafts on cardholders’ accounts, refer to Note 5 — Accounts Receivable.
As of December 31, 2015 and 2014, we had $1.5 million outstanding in standby letters of credit related to our
corporate facility lease.