INTL FCStone 2012 Annual Report Download - page 97
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Please find page 97 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 81
PART II
ITEM 8 Financial Statements and Supplementary Data
NOTE 8 Goodwill
During the scal years ended September30, 2012 and 2011, the Company recognized $1.1 million and $2.2 million, respectively, in
additional goodwill related to acquisitions. See discussion in Note18 related to the additional goodwill recorded for the Company’s
acquisitions.
Goodwill allocated to the Company’s operating segments as of September30, 2012 and 2011 is as follows:
(in millions)
September30, 2012 September30, 2011
Commodity and Risk Management Services $ 32.0 $ 30.9
Foreign Exchange 6.3 6.3
Securities 5.3 5.3
GOODWILL $ 43.6 $ 42.5
NOTE 9 Intangible Assets
Intangible assets acquired during the scal year ended September30, 2012 relate to acquisitions, as discussed in Note18. e gross
and net carrying values of intangible assets as of the balance sheet dates, by major intangible asset class are as follows:
(in millions)
September30, 2012 September30, 2011
Gross
Amount
Accumulated
Amortization
Net
Amount
Gross
Amount
Accumulated
Amortization
Net
Amount
Intangible assets subject to amortization
Noncompete agreement $ 3.7 $ (3.0) $ 0.7 $ 3.7 $ (1.7) $ 2.0
Trade name 0.7 (0.5) 0.2 0.6 (0.5) 0.1
Software programs/platforms 2.2 (1.0) 1.2 2.1 (0.6) 1.5
Customer base 9.6 (1.8) 7.8 8.9 (1.0) 7.9
16.2 (6.3) 9.9 15.3 (3.8) 11.5
Intangible assets not subject to amortization
Trade name 1.2 — 1.2 2.1 — 2.1
TOTAL INTANGIBLE ASSETS $ 17.4 $ 6.3 $ 11.1 $ 17.4 $ 3.8 $ 13.6
Amortization expense related to intangible assets was $2.5 million, $2.3 million, and $0.7 million for the scal years ended 2012,
2011 and 2010, respectively. As of September30, 2012, the estimated future amortization expense was as follows:
(in millions)
Fiscal 2013 $ 2.0
Fiscal 2014 1.1
Fiscal 2015 0.8
Fiscal 2016 0.4
Fiscal 2017 0.4
Fiscal 2018 and thereafter 5.2
$ 9.9
During the scal year ended September30, 2012, as part of the
annual goodwill and intangible assets impairment analysis, the
Company assessed the value of the inde nite-lived trade names
related to previous acquisitions and determined that the value
of the Hencorp Futures and Provident Group trade names had
been impaired during the year. e Company is intending to
discontinue the use of those trade names in the future, which
impaired the value of the previously recorded intangible assets.
e remaining value, if any, of the trade names was determined
based on the income approach utilizing projected sales, an
estimated royalty rate and discount rate.
e Company recorded impairment losses for the trade names
of $0.8 million, within ‘bad debts and impairments’ on the
consolidated income statement, during the scal year ended
September30, 2012. In addition, the Company determined
that the remaining value of the Hencorp Futures trade name
is no longer an inde nite-lived intangible asset. e remaining
value of the Hencorp Futures trade name of $0.1 million is
being amortized over a one year period. e Hencorp Futures
and Provident Group trade names were recorded in the CR&M
and Securities segments, respectively.