INTL FCStone 2014 Annual Report Download - page 116

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INTL FCSTONE INC. Form 10K100
PART II
ITEM 8 Financial Statements and Supplementary Data
Hedging segment. Purchase costs allocated to intangible assets
with determinable useful lives are $0.2 million, which are being
amortized over the remaining useful lives of the assets, and include
customer relationships, websites and non-compete agreements
(approximate two-year weighted-average useful life) and is
deductible for tax purposes.
MF Metals Team
On November 25, 2011, INTL FCStone Ltd, the Company’s
wholly owned subsidiary in the United Kingdom (“UK”),
arranged with the administrator of MF Global’s UK operations
to acquire certain assets of the Metals Division of MF Global UK
Limited (in special administration). As part of the arrangement,
the Company received an assignment of customer accounts and
customer account documentation. Additionally, as part of the
transaction, the Company hired more than 50 professionals
from MF Global’s metals trading business based in London.
is business serves institutional investors and financial services
firms in the Americas, Europe and the Asia-Pacific region. e
Company has allocated equity capital to integrate these brokers
and their customers into the Company’s operations, through
a combination of increased regulatory capital to support the
accounts of these customers and increased compensation and
related personnel costs for the brokers. e amount of the
required capital depends upon the activity in and balances of
the customer accounts.
e purchase price of the acquisition of certain assets from MF
Global was $1.0 million. ere was no contingent consideration
associated with this transaction. e intangible assets recognized
in this transaction were assigned to the Commercial Hedging
segment. Purchase costs allocated to intangible assets with
determinable useful lives are $0.5 million, which are being
amortized over the remaining useful lives of the assets, and
include customer relationships (approximate three-year weighted-
average useful life).
TRX Futures Limited
On April 30, 2012, the Company’s wholly owned subsidiary
in the UK, INTL Holding (UK) Limited, acquired 100% of
the outstanding shares of TRX Futures Limited (“TRX”) from
Neumann Gruppe GmbH. TRX is a London-based niche
clearing firm for commercial coffee and cocoa customers, as well
as energy and financial products. e purchase price was equal
to the tangible net asset value of TRX, which was approximately
$12.9 million. ere are no additional payments remaining for
this acquisition. e goodwill recognized in this transaction
was assigned to the Commercial Hedging segment. Purchase
costs allocated to goodwill of $0.3 million was calculated as
the excess of the fair value of the consideration transferred
over the fair value of the identified net assets acquired and
liabilities assumed.
Aporte DTVM
In February 2012, the Company’s subsidiaries, INTL Participacoes
LTDA and FCStone do Brasil, acquired 100% of the shares of
Aporte DTVM. Following the acquisition, Aporte DTVM was
renamed INTL FCStone DTVM Ltda. INTL FCStone DTVM
is based in Brazil and is a broker-dealer regulated by the Central
Bank of Brazil. e purchase price for the acquisition of the shares
of Aporte DTVM was $1.5 million. ere are no additional
payments remaining for this acquisition. e goodwill recognized
in this transaction was assigned to the Commercial Hedging
segment. Purchase costs allocated to goodwill of $0.8 million
was calculated as the excess of the fair value of the consideration
transferred over the fair value of the identified net assets acquired
and liabilities assumed.
NOTE 19 Accumulated Other Comprehensive Income (Loss)
Comprehensive income consists of net income and other gains and losses affecting stockholders’ equity that, under U.S. GAAP,
are excluded from net income. Other comprehensive income (loss) includes net actuarial losses from defined benefit pension plans,
unrealized gains on available-for-sale securities, and gains and losses on foreign currency translations.
e following table summarizes the changes in accumulated other comprehensive income (loss) for the year ended September 30, 2014.
(in millions)
Foreign
Currency
Translation
Adjustment
Pension
Benefits
Adjustment
Unrealized
Gain or Loss on
Available-for-Sale
Securities
Accumulated Other
Comprehensive
Loss
Balances as of September 30, 2013 $ (4.1) $ (2.8) $ 0.5 $ (6.4)
Other comprehensive income (loss), net of tax before
reclassifications (4.6) (0.8) 0.2 (5.2)
Amounts reclassified from AOCI, net of tax — 0.1 (0.1—
Net current period other comprehensive income (loss),
net of tax (4.6) (0.7) 0.1 (5.2)
Balances as of September 30, 2014 $ (8.7) $ (3.5) $ 0.6 $ (11.6)