INTL FCStone 2014 Annual Report Download - page 117

Download and view the complete annual report

Please find page 117 of the 2014 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.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

INTL FCSTONE INC. Form 10K 101
PART II
ITEM 8 Financial Statements and Supplementary Data
NOTE 20 Discontinued Operations
Exit of Physical Base Metals Business
During the second quarter of fiscal 2013, as a result of a change
in management strategy in the Company’s base metals product
line, the Company elected to pursue an exit of its physical
base metals business through the sale and orderly liquidation
of then-current open positions. During the following months,
the Company completed a sale of a portion of the physical
base metals open contract positions, and the liquidation of the
majority of the remaining physical base metals open contract
positions and inventory. e exit of the physical base metals
business was substantially completed by the end of fiscal 2013,
including the termination of the physical base metals trading
team and certain operational support personnel. e remaining
open contract positions were fulfilled during the second quarter
of fiscal 2014. Under existing accounting guidance, before the
implementation of ASU 2014-08, the Company has reclassified
the physical base metals activities in the financial statements as
discontinued operations for all periods presented. e physical
base metals business was previously included in the Commodity
and Risk Management Services segment (see Note 22 – Segment
and Geographic Information). e Company continues to
operate the portion of its base metals business related to non-
physical assets, conducted primarily through the London
Metals Exchange.
Summarized below are the components of the Company’s (loss) income from discontinued operations for the years ended September 30,
2014, 2013 and 2012:
(in millions)
Year Ended September 30,
2014 2013 2012
Total revenues from discontinued operations $ 40.9 $ 1,275.0 $ 1,265.9
Total cost of sales of physical commodities from discontinued
operations 40.2 1,264.7 1,259.8
Operating revenues $ 0.7 $ 10.3 $ 6.1
(Loss) income from discontinued operations before income taxes $ (0.5) $ 1.4 $ (6.7)
Income tax benefit (expense) 0.2 (0.7) 2.4
(Loss) income from discontinued operations, net of tax $ (0.3) $ 0.7 $ (4.3)
NOTE 21 Quarterly Financial Information (Unaudited)
e Company has set forth certain quarterly unaudited financial data for the past two years in the tables below:
(in millions, except per share amounts)
For the 2014 Fiscal Quarter Ended
September 30 June 30 March 31 December 31
Total revenues $ 10,655.7 $ 7,005.1 $ 8,452.9 $ 7,908.7
Cost of sales of physical commodities 10,525.1 6,886.9 8,323.7 7,795.8
Operating revenues 130.6 118.2 129.2 112.9
Transaction-based clearing expenses 27.5 28.1 27.7 25.2
Introducing broker commissions 13.9 11.6 12.8 11.6
Interest expense 2.5 2.5 2.8 2.7
Net operating revenues 86.7 76.0 85.9 73.4
Compensation and other expenses 78.9 72.0 75.6 69.5
Income from continuing operations, before tax 7.8 4.0 10.3 3.9
Income tax expense 2.0 0.3 2.6 1.5
Income from continuing operations 5.8 3.7 7.7 2.4
(Loss) income from discontinued operations, net of tax — (0.2) (0.2) 0.1
Net income $ 5.8 $ 3.5 $ 7.5 $ 2.5
Net basic earnings per share $ 0.30 $ 0.19 $ 0.39 $ 0.13
Net diluted earnings per share $ 0.29 $ 0.18 $ 0.39 $ 0.12