v2.3.0.15
Significant Customer Concentrations
9 Months Ended
Sep. 30, 2011
Significant Customer Concentrations [Abstract] 
Concentration Risk Disclosure
A credit concentration may exist if customers are involved in similar industries, economic sectors, and geographic regions. Our retail distributors operate in similar economic sectors but diverse domestic geographic regions. The loss of a significant retail distributor could have a material adverse effect upon our card sales, profitability, and revenue growth.
Revenues derived from our products sold at our four largest retail distributors represented the following percentages of our total operating revenues:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2011
 
2010
 
2011
 
2010
 
 
 
 
 
 
 
 
Walmart
61
%
 
63
%
 
60
%
 
63
%
Three other largest retail distributors, as a group
20
%
 
20
%
 
20
%
 
20
%
Excluding stock-based retailer incentive compensation of $3.5 million and $5.2 million for the three-month periods ended September 30, 2011 and 2010, respectively, and $13.8 million and $7.7 million for the nine-month periods ended September 30, 2011 and 2010, respectively, revenues derived from our products sold at our four largest retail distributors represented the following percentages of our total operating revenues:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2011
 
2010
 
2011
 
2010
 
 
 
 
 
 
 
 
Walmart
62
%
 
65
%
 
61
%
 
64
%
Three other largest retail distributors, as a group
19
%
 
20
%
 
18
%
 
19
%
In determining the customer concentration, we attributed our operating revenues to the retail distributor where the sale of the new cards and cash transfer products occurred. The concentration of GPR cards activated (in units) for Walmart and our three other largest retail distributors, in the aggregate, was 84% and 88% for the three-month periods ended September 30, 2011 and 2010, respectively, and 78% and 83% for the nine-month periods ended September 30, 2011 and 2010, respectively. The concentration of sales of cash transfer products (in units) for these retail distributors, in the aggregate, was 89% and 92% for the three-month periods ended September 30, 2011 and 2010, respectively, and 89% and 93% for the nine-month periods ended September 30, 2011 and 2010, respectively.
Settlement assets attributable to Walmart and our three other largest retail distributors, as a group, comprised 36% and 35%, respectively, of the settlement assets recorded on our consolidated balance sheet as of September 30, 2011 and 26% and 31%, respectively, as of December 31, 2010.
During the nine-month periods ended September 30, 2011 and 2010, the substantial majority of the customer funds underlying our products were held in bank accounts at two card issuing banks. These funds are held in trust for the benefit of the customers, and we have no legal rights to the customer funds or deposits at the card issuing banks. Additionally, we have receivables due from these card issuing banks included in accounts receivable, net, on our consolidated balance sheets. The failure of either of these card issuing banks could result in significant business disruption, a potential material adverse affect on our ability to service our customers, potential contingent obligations by us to customers and material write-offs of uncollectible receivables due from these card issuing banks.