INTL FCStone 2012 Annual Report Download - page 113
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PART II
ITEM 8 Financial Statements and Supplementary Data
U.S. and international components of income (loss) from continuing operations, before income taxes, was as follows:
(in millions)
Year Ended September30,
2012 2011 2010
U.S. $ (13.7) $ 27.3 $ 4.4
International 33.0 32.2 13.5
INCOME FROM CONTINUING OPERATIONS, BEFORE TAX $ 19.3 $ 59.5 $ 17.9
Items accounting for the di erence between income taxes computed at the federal statutory rate and the provision for income taxes
were as follows:
Year Ended September30,
2012 2011 2010
Federal statutory rate e ect of: 35.0% 35.0% 35.0%
U.S. State income taxes (1.2)% 0.9% 2.9%
Foreign earnings taxed at lower rates (16.7)% (2.9)% (7.0)%
Change in foreign valuation allowance 1.8% 0.7% 5.0%
Change in state valuation allowance (0.2)% 1.0% —%
Tax impact of state rate change —% 1.1% —%
Uncertain tax positions (1.2)% 1.4% —%
Non-deductible meals and entertainment 2.2% —% (0.8)%
Foreign permanent items 4.9% —% —%
Other reconciling items (3.4)% 0.6% 0.5%
EFFECTIVE RATE 21.2% 37.8% 35.6%
e components of deferred income tax assets and liabilities were as follows:
(in millions)
September30, 2012 September30, 2011
Deferred tax assets:
Stock-based compensation $ 2.5 $ 1.9
Pension liability 6.1 5.5
Deferred compensation 3.2 4.0
Foreign net operating loss carryforwards 2.0 1.5
State net operating loss carryforwards 4.9 4.1
Intangible assets 6.1 5.0
Partnership tax basis timing di erences 1.1 2.4
Bad debt reserve 0.1 1.1
Foreign tax credit 0.3 0.6
Other compensation 4.5 3.3
Other 1.2 1.2
Total gross deferred tax assets 32.0 30.6
Less valuation allowance (4.1) (3.7)
Deferred tax assets 27.9 26.9
Deferred income tax liabilities:
Unrealized gain on securities 3.1 1.1
Prepaid expenses 1.1 1.5
Fixed assets 3.8 3.6
Deferred income tax liabilities 8.0 6.2
NET DEFERRED TAX ASSETS $ 19.9 $ 20.7
Deferred income tax balances re ect the e ects of temporary
di erences between the carrying amounts of assets and liabilities
and their tax bases and are stated at enacted tax rates expected to
be in e ect when taxes are actually paid or recovered.
As of September30, 2012 and 2011, respectively, the Company
has net operating loss carryforwards for foreign and state income
tax purposes of $2.8 million and $1.9 million, net of valuation
allowances, which are available to o set future foreign and state
taxable income. e net operating loss carryforwards expire in
tax years ending in 2020 through 2030.