INTL FCStone 2012 Annual Report Download - page 105
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Please find page 105 of the 2012 INTL FCStone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.INTL FCSTONE INC.Form10K 89
PART II
ITEM 8 Financial Statements and Supplementary Data
Funds deposited by customers and other assets, which are held in separate accounts for customers trading foreign futures and foreign
options customers, as of September30, 2012 and 2011 are as follows:
(in millions)
September30, 2012 September30, 2011
Cash - secured $ 25.2 $ 6.4
Securities 3.3 —
Equities with futures commission merchants 9.9 30.3
Amounts held by clearing organizations of foreign boards of trade 20.8 —
Amounts held by members of foreign boards of trade 30.1 2.1
Total customer-secured funds 89.3 38.8
Amount required to be secured 77.6 27.2
Excess secured funds $ 11.7 $ 11.6
NOTE 13 Commodity and Other Repurchase Agreements
e Company’s outstanding notes receivable in connection
with the sale/repurchase agreements, whereby the customers
sell certain commodity inventory and agree to repurchase the
commodity inventory at a future date at either a xed or oating
rate, as of September30, 2012 and 2011 was $92.5 million and
$24.3 million, respectively.
e obligations outstanding related to commodities sold under
repurchase agreements that are recorded within ‘broker-dealers,
clearing organizations and counterparties’ as of September30,
2012 and 2011 were $37.0 million and $0, respectively. e
obligations outstanding related to commodities sold under
repurchase agreements that are recorded within ‘lenders under
loans’ as of September30, 2012 and 2011 were $43.2 million
and $17.4 million, respectively.
NOTE 14 Stock-Based Compensation
Stock-based compensation expense is included within
Compensation and bene ts in the consolidated income statements
and totaled $5.9 million, $2.3 million and $1.9 million for the
scal years ended 2012, 2011 and 2010, respectively.
Stock Option Plans
e Company sponsors a stock option plan for its directors,
o cers, employees and consultants. On February23, 2012, the
Company’s shareholders approved an amendment to the stock
option plan that increased the maximum number of shares that
may be issued under the stock option plan from 2,250,000 to
3,250,000 shares. As of September30, 2012, 921,412 shares
were authorized for future grant under this plan. Awards that
expire or are canceled generally become available for issuance
again under the plan. e Company settles stock option exercises
with newly issued shares 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 September30,
2012 2011 2010
Expected stock price volatility 57% 77% 85%
Expected dividend yield —% —% —%
Risk free interest rate 1.53% 0.72% 1.45%
Average expected life (in years) 7.86 2.94% 2.80%
Expected stock price volatility rates are primarily based on the
historical volatility. 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. Treasury yield curve in
e 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
scal years ended 2012, 2011 and 2010 was $13.57, $11.66 and
$8.12, respectively.