INTL FCStone 2013 Annual Report Download - page 107

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INTLFCSTONEINC.Form10K86
PART II
ITEM 8Financial Statements and Supplementary Data
NOTE 10 Intangible Assets
Intangible assets of $2.8 million, attributed to customer relationships, acquired during the scal year ended September 30, 2013
relate to an acquisition, as discussed in Note 19.
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)
September 30, 2013 September 30, 2012
Gross
Amount
Accumulated
Amortization
Net
Amount
Gross
Amount
Accumulated
Amortization
Net
Amount
Intangible assets subject to amortization
Noncompete agreement $ 3.7 $ (3.7) $ — $ 3.7 $ (3.0) $ 0.7
Trade name 0.7 (0.7) — 0.7 (0.5) 0.2
Software programs/platforms 2.2 (1.5) 0.7 2.2 (1.0) 1.2
Customer base 12.4 (2.6) 9.8 9.6 (1.8) 7.8
19.0 (8.5) 10.5 16.2 (6.3) 9.9
Intangible assets not subject to amortization
Trade name 1.1 — 1.1 1.2 — 1.2
TOTAL INTANGIBLE ASSETS $ 20.1 $ 8.5 $ 11.6 $ 17.4 $ 6.3 $ 11.1
Amortization expense related to intangible assets was $2.2 million, $2.5 million, and $2.3 million for the scal years ended 2013,
2012 and 2011, respectively.
As of September 30, 2013, the estimated future amortization expense was as follows:
(in millions)
Fiscal 2014 $ 1.4
Fiscal 2015 1.0
Fiscal 2016 0.7
Fiscal 2017 0.7
Fiscal 2018 0.7
Fiscal 2019 and thereafter 6.0
$ 10.5
During the scal years ended September 30, 2013 and 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 Hanley Companies, Hencorp Futures and
Provident Group trade names had been impaired during those
years. e Company discontinued the use of those trade names,
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
$0.1 million and $0.8 million, in ‘bad debts and impairments’
on the consolidated income statements, during the scal years
ended September 30, 2013 and 2012. During scal year 2012, the
Company determined that the remaining value of the Hencorp
Futures trade name was no longer an indenite-lived intangible
asset. e remaining value of the Hencorp Futures trade name of
$0.1 million was amortized over a one year period. e Hanley
Companies, Hencorp Futures and Provident Group trade names
were recorded in the CR&M and Securities segments, respectively.
NOTE 11 Credit Facilities
Variable-Rate Credit Facilities
e Company has three committed credit facilities under which the
Company and its subsidiaries may borrow up to $290.0million,
subject to the terms and conditions for these facilities. e amounts
outstanding under these credit facilities are short term borrowings
and carry variable rates of interest, thus approximating fair value.
e Company’s credit facilities are as follows:
A three-year syndicated committed loan facility established
on September 20, 2013 under which $140 million is available
to the Company for general working capital requirements.