INTL FCStone 2011 Annual Report Download - page 111

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INTL FCSTONE INC.Form10K 97
PART II
ITEM 8 Consolidated Financial Statements and Supplementary Data
August31,2009, net of taxes of $6.0million. e pro forma
adjustments consist of the elimination of depreciation and
amortization expense, impairment on goodwill and merger costs
and amortization of equipment related to research and development
activities for FCStone. Average basic and dilutedshares outstanding
were adjusted to refl ect the exchange ratio of 0.295shares of the
Company for each FCStone common share.
NOTE 19 Income Taxes
Income tax expense on comprehensive income for the years ended September30,2011,2010 and 2009 was allocated as follows:
(in millions)
Year Ended September30,
2011 2010 2009
Income tax expense attributable to income from continuing operations $ 22.5 $ 6.4 $ 2.6
Income tax expense attributable to loss from discontinued operations 0.1 0.6 0.1
Income tax expense attributable to income from extraordinary gain — 5.8 —
Taxes allocated to stockholders’ equity, related to unrealized (losses) gains
onavailable-for-sale securities (0.3) 0.1 —
Taxes allocated to stockholders’ equity, related to pension liabilities (1.7) (1.1) —
Taxes allocated to stockholders’ equity, related to unrealized loss (gain) on derivatives 0.6 0.7 (1.2)
TOTAL INCOME TAX EXPENSE $ 21.2 $ 12.5 $ 1.5
e components of the provision for income taxes attributable to income from continuing operations were as follows:
(in millions)
Year Ended September30,
2011 2010 2009
Current taxes:
U.S. Federal $ 9.1 $ — $ 1.7
U.S. State and local 1.7 0.4 0.2
International 9.9 4.8 4.4
Total current taxes 20.7 5.2 6.3
Deferred taxes 1.8 1.2 (3.7)
INCOME TAX EXPENSE $ 22.5 $ 6.4 $ 2.6
U.S. and international components of income from continuing operations, before income taxes, was as follows:
(in millions)
Year Ended September30,
2011 2010 2009
U.S. $ 27.3 $ 4.4 $ (4.8)
International 32.2 13.5 18.1
INCOME FROM CONTINUING OPERATIONS, BEFORE TAX $ 59.5 $ 17.9 $ 13.3
Items accounting for the diff erence between income taxes computed at the federal statutory rate and the provision for income taxes
were as follows:
Year Ended September30,
2011 2010 2009
Federal statutory rate eff ect of: 35.0% 35.0% 34.0%
U.S. State income taxes 0.9% 2.9% (1.4)%
Foreign earnings taxed at lower rates (2.9)% (7.0)% (13.7)%
Change in foreign valuation allowance 0.7% 5.0% —%
Change in state valuation allowance 1.0% —% —%
Tax impact of state rate change 1.1% —% —%
Uncertain tax positions 1.4% —% —%
Stock-based compensation expense —% —% 3.4%
Non-deductible meals and entertainment —% (0.8)% 0.4%
Other reconciling items 0.6% 0.5% (2.8)%
EFFECTIVE RATE 37.8% 35.6% 19.9%