INTL FCStone 2012 Annual Report Download - page 84
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PART II
ITEM 8 Financial Statements and Supplementary Data
In July 2012, the FASB issued nal guidance on inde nite-lived
intangible assets impairment testing. Under the guidance, entities
testing inde nite-lived intangibles for impairment have the option
of rst performing a qualitative assessment to determine whether
it is more likely than not that an inde nite-lived intangible
asset is impaired. If a company determines that it is more likely
than not that the fair value of such an asset exceeds its carrying
amount, it would not need to calculate the fair value of the asset
in that year. However, if a company concludes otherwise, it must
calculate the fair value of the asset, compare that value with its
carrying amount and record an impairment charge, if any. e
guidance does not revise the requirement to test inde nite-lived
intangible assets annually for impairment. In addition, the
guidance does not amend the requirement to test inde nite-lived
intangible assets for impairment between annual tests if events
or circumstances warrant, however, it does revise the examples
of events and circumstances that an entity should consider. e
guidance is e ective for annual and interim impairment tests
performed for scal years beginning after September 15, 2012.
Early adoption is permitted. e Company is expecting to adopt
this guidance for the impairment testing to be performed during
the scal year ended September 30, 2013. It is expected that the
adoption of this guidance will not have a material impact on the
Company’s consolidated nancial statements.
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 and shares 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 common shares 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,
2012 2011 2010
Numerator:
Income from continuing operations attributable to INTL FCStone Inc.
stockholders $ 15.0 $ 37.1 $ 11.8
Less: Allocation to participating securities (0.6) (0.9) (0.2)
INCOME FROM CONTINUING OPERATIONS ALLOCATED
TOCOMMON STOCKHOLDERS $ 14.4 $ 36.2 $ 11.6
Income from discontinued operations $ — $ 0.2 $ 0.6
Less: Allocation to participating securities — — —
INCOME FROM DISCONTINUED OPERATIONS ALLOCATED
TOCOMMON STOCKHOLDERS $ $ 0.2 $ 0.6
Extraordinary loss $ — $ — $ (7.0)
Less: Allocation to participating securities — — 0.1
EXTRAORDINARY LOSS ALLOCATED TO COMMON STOCKHOLDERS $ $ $ 6.9
Diluted net income $ 15.0 $ 37.3 $ 5.4
Less: Allocation to participating securities (0.6) (0.9) (0.1)
DILUTED NET INCOME ALLOCATED TO COMMON STOCKHOLDERS $ 14.4 $ 36.4 $ 5.3
Denominator:
Weighted average number of:
Common shares outstanding 18,282,939 17,618,085 17,306,019
Dilutive potential common shares outstanding:
Share-based awards 873,960 949,369 577,214
DILUTED WEIGHTEDAVERAGE SHARES 19,156,899 18,567,454 17,883,233