INTL FCStone 2011 Annual Report Download - page 100

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INTL FCSTONE INC.Form10K86
PART II
ITEM 8 Consolidated Financial Statements and Supplementary Data
NOTE 16 Stock-Based Compensation
Stock-based compensation expense is included within Compensation and bene ts in the consolidated income statements and totaled
$2.3million, $1.9million and $1.9million for the scal years ended 2011,2010 and 2009, respectively.
Stock Option Plans
e Company sponsors a stock option plan for its directors, offi cers, employees and consultants. As of September30,2011,
750,481shares were authorized for future grant under this plan. Awards that expire or are canceled generally become available for
issuance again under the plan. We settle stock option exercises with newly issuedshares of common stock.
Fair value is estimated at the grant date based on a Black-Scholes-Merton option-pricing model using the following weighted-average
assumptions:
Year Ended September30,
2011 2010 2009
Expected stock price volatility 77% 85% 114%
Expected dividend yield —% —% —%
Risk free interest rate 0.72% 1.45% 2.23%
Average expected life (in years) 2.94 2.80 4.70
Expected stock price volatility rates are based on the historical
volatility of the Company’s common stock. e Company has
not paid dividends in the past and does not currently expect to
do so in the future. Risk free interest rates are based on the U.S.
Tr e a s u r y y i e l d c u r v e i n e ff ect at the time of grant for periods
corresponding with the expected life of the option or award. e
average expected life represents the estimated period of time that
options or awards granted are expected to be outstanding, based
on the Company’s historical share option exercise experience
for similar option grants. e weighted average fair value of
options issued during fi scal years ended 2011,2010 and 2009
was $11.66, $8.12 and $10.21, respectively.
e following is a summary of stock option activity for the year ended September30,2011:
Shares
Available
for Grant
Number
of Options
Outstanding
Weighted
Average Price
Weighted
Average
GrantDate
FairValue
Weighted
Average
Remaining Term
(in years)
Aggregate
Intrinsic
Value
($ millions)
Balances at September30,2010 744,871 1,476,500 $ 20.42 $ 8.93 3.68 $ 8.4
Granted (49,323) 49,323 $ 23.45 $ 11.66
Exercised (126,244) $ 11.44 $ 7.79
Forfeited 8,333 (8,333) $ 24.69 $ 10.90
Expired 46,600 (46,600) $ 28.81 $ 14.43
Balances at September30,2011 750,481 1,344,646 $ 21.05 $ 8.93 3.06 $ 9.8
EXERCISABLE AT SEPTEMBER30,2011 846,117 $ 27.99 $ 11.67 3.03 $ 4.0
e total compensation cost not yet recognized for non-vested awards of $1.1million as of September30,2011 has a weighted-
average period of 2.08 years over which the compensation expense is expected to be recognized. e total intrinsic value of options
exercised during fi scal years 2011,2010 and 2009 was $1.6million, $1.4million and $0.6million, respectively.