INTL FCStone 2011 Annual Report Download - page 93

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INTL FCSTONE INC.Form10K 79
PART II
ITEM 8 Consolidated Financial Statements and Supplementary Data
NOTE 10 Intangible Assets
Intangible assets acquired during the year ended September30,2011 relate to acquisitions, as discussed in Note18. e gross and
net carrying values of intangible assets as of the balance sheet dates, by major intangible asset class are as follows:
(in millions)
September30,2011 September30,2010
Gross
Amount
Accumulated
Amortization NetAmount
Gross
Amount
Accumulated
Amortization NetAmount
Intangible assets subject to amortization
Noncompete agreement $ 3.7 $ (1.7) $ 2.0 $ 3.3 $ (0.5) $ 2.8
Trade name 0.6 (0.5) 0.1 0.8 (0.4) 0.4
Software programs/platforms 2.1 (0.6) 1.5 2.1 (0.2) 1.9
Customer base 8.9 (1.0) 7.9 7.4 (0.4) 7.0
15.3 (3.8) 11.5 13.6 (1.5) 12.1
Intangible assets not subject to amortization
Trade name 2.1 — 2.1 1.0 — 1.0
TOTAL INTANGIBLE ASSETS $ 17.4 $ (3.8)$ 13.6 $ 14.6 $ (1.5)$ 13.1
Amortization expense related to intangible assets was $2.3million, $0.7million, and $0.2million for the fi scal years ended 2011,2010
and 2009, respectively. As of September30,2011, the estimated future amortization expense was as follows:
(in millions)
Fiscal 2012 $ 2.3
Fiscal 2013 1.6
Fiscal 2014 0.9
Fiscal 2015 0.7
Fiscal 2016 0.4
Fiscal 2017 and thereafter 5.6
$ 11.5
NOTE 11 Other Expenses
Other expenses for the years ended September30,2011,2010 and 2009 are comprised of the following:
(in millions)
Year Ended September30,
2011 2010 2009
Business development $ 8.9 $ 6.3 $ 1.9
Non-trading hardware and software maintenance and software licensing 2.8 1.3 0.4
Contingent consideration, net(1) 4.7 — —
Insurance 1.5 1.8 0.3
Other non-income taxes 2.8 1.3 0.2
Advertising, meetings and conferences 1.8 1.7 0.1
Offi ce supplies and printing 1.1 1.2 0.1
Other 4.9 3.5 0.9
TOTAL OTHER EXPENSES $ 28.5 $ 17.1 $ 3.9
(1) Contingent consideration includes remeasurement of contingent liabilities related to business combinations accounted for in accordance with the provisions of
the Business Combinations Topic of the ASC (see Note5) and additional purchase price, based on achieving specific conditions and earnings targets, relating to
FCStone,LLC’s previous acquisitions of Downes O’Neill, LLC (“Downes O’Neill”) and Globecot, Inc. (“Globecot”). When the Downes O’Neill and Globecot
acquisitions occurred, they were recorded in accordance with SFAS No. 141,
Business Combinations
(“SFAS 141”). As a result of the FCStone transaction on
September30,2009, these contingent purchase price amounts were considered pre-acquisition contingencies, which were not reasonably estimable during the merger
allocation period following the FCStone transaction. In accordance with SFAS 141, adjustments to pre-acquisition contingencies, made after the end of the allocation
period, are included in earnings in the current period. There are no further contingent payments relating to the Downes O’Neill acquisition. See Note14 for discussion
of the remaining contingent payments related to the acquisition of Globecot.