INTL FCStone 2012 Annual Report Download - page 96
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Please find page 96 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.Form10K80
PART II
ITEM 8 Financial Statements and Supplementary Data
e Company originates short-term notes receivable from
customers with the outstanding balances being insured 90%
to 98% by a third party, including accrued interest. e total
balance outstanding under insured notes receivable was $10.2
million as of September30, 2012. e Company has sold $0.8
million of the insured portion of the notes through non-recourse
participation agreements with other third parties.
See discussion of notes receivable related to commodity repurchase
agreements in Note13.
NOTE 6 Physical Commodities Inventory
Commodities in process include commodities in the process of
being recycled. As of September30, 2012 and 2011, $129.1
million and $159.4 million, respectively, of physical commodities
inventory served as collateral under certain of the Company’s
credit facilities, as detailed further in Note10. e carrying
values of the Company’s inventory as of September30, 2012
and 2011 are shown below.
(in millions)
September30, 2012 September30, 2011
Commodities in process $ 13.6 $ 2.4
Finished commodities 118.0 158.2
PHYSICAL COMMODITIES INVENTORY $ 131.6 $ 160.6
As a result of declining market prices for some commodities towards the end of the scal year, the Company has recorded LCM
adjustments for physical commodities inventory of $0.4 million and $21.9 million as of September30, 2012 and 2011, respectively.
e adjustments are included within ‘cost of sales of physical commodities’ in the consolidated income statements.
NOTE 7 Property and Equipment, net
Property and equipment are stated at cost, and reported net of
accumulated depreciation on the consolidated balance sheets.
Depreciation on plant and equipment is calculated on the
straight-line method over the estimated useful lives of the assets.
e estimated useful lives of property and equipment range from
3 to 10 years. During the scal years ended September30, 2012,
2011 and 2010, depreciation expense was $4.7 million, $2.4
million and $1.0 million, respectively.
A summary of property and equipment, at cost less accumulated depreciation as of September30, 2012 and 2011 is as follows:
(in millions)
September30, 2012 September30, 2011
Property and equipment:
Furniture and xtures $ 6.3 $ 4.8
Software 3.9 2.4
Equipment 9.3 6.0
Leasehold improvements 9.0 7.1
Total property and equipment 28.5 20.3
Less accumulated depreciation (9.6) (5.3)
PROPERTY AND EQUIPMENT, NET $ 18.9 $ 15.0