INTL FCStone 2013 Annual Report Download - page 115

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INTLFCSTONEINC.Form10K94
PART II
ITEM 8Financial Statements and Supplementary Data
Year Ended September 30,
2013 2012 2011
Expected stock price volatility 35% 57% 77%
Expected dividend yield —% —% —%
Risk free interest rate 0.37% 1.53% 0.72%
Average expected life (in years) 2.88 7.86 2.94
Expected stock price volatility rates are primarily based on the
historical volatility. e Company has not paid dividends in the
past and does not currently expect to do so in the future. Risk
free interest rates are based on the U.S. Treasury yield curve in
eect at the time of grant for periods corresponding with the
expected life of the option or award. e average expected life
represents the estimated period of time that options or awards
granted are expected to be outstanding, based on the Company’s
historical share option exercise experience for similar option
grants. e weighted average fair value of options issued during
scal years ended 2013, 2012 and 2011 was $4.21, $13.57 and
$11.66, respectively.
e following is a summary of stock option activity for the year ended September 30, 2013:
Shares
Available
for Grant
Number of
Options
Outstanding
Weighted
Average
Exercise Price
Weighted Average
Grant Date
Fair Value
Weighted Average
Remaining Term
(inyears)
Aggregate
Intrinsic Value
($millions)
Balances at September30, 2012 921,412 1,890,634 $ 23.36 $ 11.11 5.45 $ 6.0
Additional shares authorized by
shareholders 1,000,000
Termination of 2003 plan (821,412)
Granted (100,000) 100,000 $ 17.53 $ 4.21
Exercised (177,246) $ 8.40 $ 5.26
Forfeited — (32,738) $ 10.35 $ 3.88
Expired — (667) $ 23.49 $ 11.58
Balances at September30, 2013 1,000,000 1,779,983 $ 24.76 $ 11.44 4.87 $ 4.8
Exercisable at September30, 2013 680,820 $ 27.47 $ 11.04 1.91 $ 3.1
e total compensation cost not yet recognized for non-vested awards of $10.0 million as of September 30, 2013 has a weighted-
average period of 5.71 years over which the compensation expense is expected to be recognized. e total intrinsic value of options
exercised during scal years 2013, 2012 and 2011 was $2.0 million, $3.0 million and $1.6 million, respectively.
e options outstanding as of September 30, 2013 broken down by exercise price are as follows:
Exercise Price
Number of Options
Outstanding
Weighted Average
Exercise Price
Weighted Average
Remaining Term
(in years)
$ — - $ 5.00 — n/a n/a
$ 5.00 - $ 10.00 301,875 $ 7.02 1.18
$ 10.00 - $ 15.00 — n/a n/a
$ 15.00 - $ 20.00 322,179 $ 18.01 2.40
$ 20.00 - $ 25.00 126,204 $ 23.52 3.10
$ 25.00 - $ 30.00 800,000 $ 25.91 8.22
$ 30.00 - $ 35.00 — n/a n/a
$ 35.00 - $ 40.00 — n/a n/a
$ 40.00 - $ 45.00 — n/a n/a
$ 45.00 - $ 50.00 — n/a n/a
$ 50.00 - $ 55.00 229,725 $ 54.23 2.45
1,779,983 $ 24.76 4.87