INTL FCStone 2011 Annual Report Download - page 80

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INTL FCSTONE INC.Form10K66
PART II
ITEM 8 Consolidated Financial Statements and Supplementary Data
NOTE 2 Earnings per Share
e Company presents basic and diluted earnings per share
(“EPS”) using the two-class method which requires all outstanding
unvested share-based payment awards that contain rights to non-
forfeitable dividends and therefore participate in undistributed
earnings with common stockholders be included in computing
earnings per share.Under the two-class method, net earnings
are reduced by the amount of dividends declared in the period
for each class of common stock and participating security. e
remaining undistributed earnings are then allocated to common
stock and participating securities, based on their respective
rights to receive dividends. Restricted stock awards granted to
certain employees and directors andshares held in trust for the
Provident Group acquisition contain non-forfeitable rights to
dividends at the same rate as common stock, and are considered
participating securities.
Basic EPS has been computed by dividing net income by the
weighted-average number of commonshares outstanding. e
following is a reconciliation of the numerator and denominator
of the diluted net income per share computations for the periods
presented below.
(in millions, except share amounts)
Year Ended September30,
2011 2010 2009
Numerator:
Income from continuing operations attributable to INTLFCStoneInc. stockholders $ 37.1 $ 11.8 $ 10.2
Less: Allocation to participating securities (0.9) (0.2) (0.2)
INCOME FROM CONTINUING OPERATIONS ALLOCATED TO COMMON
STOCKHOLDERS $ 36.2 $ 11.6 $ 10.0
Interest on convertible debt, net of tax $ — $ — $ 0.9
Less: Allocation to participating securities — — —
INTEREST ON CONVERTIBLE DEBT ALLOCATED TO COMMON
STOCKHOLDERS, NET OF TAX $ $ $ 0.9
Loss (income) from discontinued operations $ 0.2 $ 0.6 $ (1.1)
Less: Allocation to participating securities — — —
LOSS (INCOME) FROM DISCONTINUED OPERATIONS
ALLOCATED TO COMMON STOCKHOLDERS $ 0.2 $ 0.6 $ (1.1)
Extraordinary loss (income) $ — $ (7.0) $ 18.5
Less: Allocation to participating securities — 0.1 (0.3)
EXTRAORDINARY LOSS (INCOME) ALLOCATED
TO COMMON STOCKHOLDERS $ —$(6.9)$ 18.2
Diluted net income $ 37.3 $ 5.4 $ 28.5
Less: Allocation to participating securities (0.9) (0.1) (0.5)
DILUTED NET INCOME ALLOCATED TO COMMON STOCKHOLDERS $ 36.4 $ 5.3 $ 28.0
Denominator:
Weighted average number of:
Commonshares outstanding 17,618,085 17,306,019 8,895,697
Dilutive potential commonshares outstanding:
Share-based awards 949,369 577,214 514,680
Convertible debt — — 772,209
DILUTED WEIGHTED-AVERAGESHARES 18,567,454 17,883,233 10,182,586
e dilutive eff ect of share-based awards is refl ected in diluted
net income per share by application of the treasury stock method,
which includes consideration of unamortized share-based
compensation expense required under the Compensation–
Stock Compensation Topic of the ASC. e dilutive eff ect of
convertible debt is refl ected in diluted net income per share by
application of the if-converted method.
Options to purchase 386,031, 815,066 and 825,302shares of
common stock for fi scal years ended 2011,2010 and 2009,
respectively, were excluded from the calculation of diluted
earnings per share because they would have been anti-dilutive.