INTL FCStone 2014 Annual Report Download - page 106

INTL FCSTONE INC.  Form 10K90
PART II
ITEM 8 Financial Statements and Supplementary Data
covering up to 1.0 million shares of the Company’s common
stock. As of September 30, 2014, there were 0.9 million shares
authorized for future grant under this plan. Awards that expire
or are canceled generally become available for issuance again
under the plan. e Company settles stock option exercises with
newly issued shares of common stock.
Fair value is estimated at the grant date based on a Black-Scholes-Merton option-pricing model using the following weighted-average
assumptions:
Year Ended September 30,
2014 2013 2012
Expected stock price volatility 34% 35% 57%
Expected dividend yield —% —% —%
Risk free interest rate 0.80% 0.37% 1.53%
Average expected life (in years) 2.88 2.88 7.86
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 effect
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 fiscal years
ended September 30, 2014, 2013 and 2012 was $4.48, $4.21
and $13.57, respectively.
e following is a summary of stock option activity for the year ended September 30, 2014:
Shares
Available
for Grant
Number of
Options
Outstanding
Weighted
Average
Exercise Price
Weighted Average
Grant Date
Fair Value
Weighted Average
Remaining Term
(in years)
Aggregate
Intrinsic Value
($ millions)
Balances at September 30, 2013 1,000,000 1,779,983 $ 24.76 $ 11.44 4.87 $ 4.8
Granted (86,500) 86,500 $ 19.24 $ 4.48
Exercised (154,583) $ 9.02 $ 4.28
Forfeited — (101,197) $ 26.10 $ 13.22
Expired — (32,647) $ 50.64 $ 14.27
Balances at September 30, 2014 913,500 1,578,056 $ 25.38 $ 11.58 4.16 $ 1.9
Exercisable at September 30, 2014 633,409 $ 26.57 $ 10.74 1.10 $ 1.9
e total compensation cost not yet recognized for non-vested awards of $7.8 million as of September 30, 2014 has a weighted-
average period of 5.22 years over which the compensation expense is expected to be recognized. e total intrinsic value of options
exercised during fiscal years 2014, 2013 and 2012 was $1.8 million, $2.0 million and $3.0 million, respectively.
e options outstanding as of September 30, 2014 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 - $ 10.00 180,315 $ 6.92 0.18
$ 10.00 - $ 15.00 — n/a n/a
$ 15.00 - $ 20.00 362,756 $ 18.51 1.98
$ 20.00 - $ 25.00 118,889 $ 23.53 2.22
$ 25.00 - $ 30.00 720,000 $ 25.91 7.22
$ 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 - $ 55.00 196,096 $ 54.23 1.80
1,578,056 $ 25.38 4.16