INTL FCStone 2011 Annual Report Download - page 102

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INTL FCSTONE INC.Form10K88
PART II
ITEM 8 Consolidated Financial Statements and Supplementary Data
e following table presents changes in, and components of, the Company’s net liability for retirement costs as of and for the years
ended September30,2011 and 2010, based on measurement dates of September30,2011 and 2010:
(in millions)
September30,2011 September30,2010
Changes in benefi t obligation:
Benefi t obligation, beginning of year $ 37.6 $ 35.6
Service cost — —
Interest cost 1.9 2.0
Actuarial (gain) loss 2.6 2.8
Benefi ts paid (3.1) (2.8)
Benefi t obligation, end of year 39.0 37.6
Changes in plan assets:
Fair value, beginning of year 24.2 18.9
Actual return (0.4) 1.7
Employer contribution 3.5 6.4
Benefi ts paid (3.1) (2.8)
Fair value, end of year 24.2 24.2
FUNDED STATUS $ 14.8 $ 13.4
e Company is required to recognize the funded status of its
defi ned benefi t pension plans measured as the diff erence between
plan assets at fair value and the projected benefi t obligation on
the consolidated balance sheets as of September30,2011 and
2010, and to recognize changes in the funded status, that arise
during the periods but are not recognized as components of net
periodic pension cost, within accumulated other comprehensive
income, net of tax. Amounts recognized in the consolidated balance
sheets consist of $0.2million and $0.3million included within
‘other assets’ as of September30,2011 and 2010, respectively,
and $15.0million and $13.7million included within ‘accounts
payable and other accrued liabilities’ as of September30,2011
and 2010, respectively.
Accumulated other comprehensive loss, net of tax, includes
amounts for actuarial losses in the amount of $4.6million and
$1.7million as of September30,2011 and 2010, respectively.
e estimated net loss for the defi ned benefi t pension plans that
will be amortized from accumulated other comprehensive loss
into net periodic pension cost during fi scal2012 is $0.4million.
e following table displays the Company’s defi ned benefi t plans that have accumulated benefi t obligations and projected benefi t
obligations in excess of the fair value of plans assets (underfunded ABO) as of September30,2011 and 2010:
(in millions)
September30,2011 September30,2010
Accumulated benefi t obligations $ 39.0 $ 37.6
Projected benefi t obligations $ 39.0 $ 37.6
Plan assets $ 24.2 $ 24.2
e defi ned benefi t obligations were based upon annual measurement dates of September30,2011 and 2010. e following
weighted-average assumptions were used to determine benefi t obligations in the accompanying consolidated balance sheets as of
September30,2011 and 2010:
September30,2011 September30,2010
Weighted average assumptions:
Discount rate 4.80% 5.30%
Expected return on assets 7.30% 7.30%
e following weighted-average assumptions were used to determine net periodic pension cost for the years ended September30,2011
and 2010:
September30,2011 September30,2010
Weighted average assumptions:
Discount rate 5.30% 5.90%
Expected return on assets 7.30% 8.25%
To a c c o un t f o r t h e d e fi ned benefi t pension plans in accordance
with the guidance in the Compensation– Retirement Benefi ts
Topic of the ASC the Company makes two main determinations
at the end of each fi scal year. ese determinations are reviewed
annually and updated as necessary, but nevertheless, are subjective
and may vary from actual results.