INTL FCStone 2012 Annual Report Download - page 112
Download and view the complete annual report
Please find page 112 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.Form10K96
PART II
ITEM 8 Financial Statements and Supplementary Data
NOTE 16 Other Expenses
Other expenses for the years ended September30, 2012, 2011 and 2010 are comprised of the following:
(in millions)
Year Ended September30,
2012 2011 2010
Business development $ 11.2 $ 8.9 $ 6.3
Contingent consideration, net
(1) 2.9 4.7 —
Insurance 1.7 1.5 1.8
Advertising, meetings and conferences 2.4 1.8 1.7
Non-trading hardware and software maintenance and software
licensing 2.2 2.8 1.3
O ce supplies and printing 1.3 1.1 1.2
Other non-income taxes 4.0 2.8 1.3
Other 5.3 4.9 3.5
TOTAL OTHER EXPENSES $ 31.0 $ 28.5 $ 17.1
(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 Note3) 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 September30,
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 Note11 for discussion of the
remaining contingent payment related to the acquisition of Globecot.
NOTE 17 Income Taxes
Income tax expense (bene t) for the years ended September30, 2012, 2011 and 2010 was allocated as follows:
(in millions)
Year Ended September30,
2012 2011 2010
Income tax expense attributable to income from continuing operations $ 4.4 $ 22.5 $ 6.4
Income tax expense attributable to loss from discontinued operations — 0.1 0.6
Income tax expense attributable to extraordinary loss — — 5.8
Taxes allocated to stockholders’ equity, related to unrealized gains
(losses) on available-for-sale securities 2.2 (0.3) 0.1
Taxes allocated to stockholders’ equity, related to pension liabilities (1.0) (1.7) (1.1)
Taxes allocated to stockholders’ equity, related to unrealized loss on
derivatives — 0.6 0.7
Taxes allocated to additional paid-in capital, related to stock-based
compensation (0.2) — —
TOTAL INCOME TAX EXPENSE $ 5.4 $ 21.2 $ 12.5
e components of the provision for income taxes attributable to income from continuing operations were as follows:
(in millions)
Year Ended September30,
2012 2011 2010
Current taxes:
U.S. Federal $ (5.7) $ 9.1 $ —
U.S. State and local 0.5 1.7 0.4
International 10.1 9.9 4.8
Total current taxes 4.9 20.7 5.2
Deferred taxes (0.5) 1.8 1.2
INCOME TAX EXPENSE $ 4.4 $ 22.5 $ 6.4