INTL FCStone 2014 Annual Report Download - page 94

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INTL FCSTONE INC. Form 10K78
PART II
ITEM 8 Financial Statements and Supplementary Data
by Chicago Mercantile Exchange (“CME”). The Company
was required to hold these exchange membership seats for
clearing purposes and, as a result, the associated KCBT
shares were being held at cost on the consolidated balance
sheet. The Company received proceeds of $1.5 million and
recognized a gain of $0.9 million before taxes, during the
fiscal year ended September 30, 2013, in connection with
the sale of these seats.
e Company has unrealized gains of $0.7 million, net of income
tax expense of $0.4 million and unrealized losses of $0.5 million,
net of income tax beneft of $0.3 million in OCI related to
U.S. government obligations, mortgage-backed securities and
the remaining equity investments in exchange firms classified as
available-for-sale securities as of September 30, 2014 and 2013,
respectively. e Company monitors the fair value of exchange
common stock on a periodic basis, and does not consider any
current unrealized losses to be anything other than temporary
impairment.
e following tables summarize the amortized cost basis, the
aggregate fair value and gross unrealized holding gains and losses
of the Company’s investment securities classified as available-
for-sale as of September 30, 2014 and September 30, 2013:
September 30, 2014
Amounts included in deposits with and receivables from exchange-clearing organizations:
(in millions)
Amortized Cost
Unrealized Holding(1) Estimated
Fair ValueGains (Losses)
U.S. government obligations $ 666.8 $ — $ — $ 666.8
(1) Unrealized gain/loss on U.S. government obligations as of September 30, 2014, is less than 0.1 million.
September 30, 2013
Amounts included in deposits with and receivables from exchange-clearing organizations:
(in millions)
Amortized Cost
Unrealized Holding(1) Estimated
Fair ValueGains (Losses)
U.S. government obligations $ 568.5 $ — $ — $ 568.5
Mortgage-backed securities 5.2 0.1 — 5.3
$ 573.7 $ 0.1 $ — $ 573.8
(1) Unrealized gain/loss on U.S. government obligations as of September 30, 2013, is less than 0.1 million.
As of September 30, 2014 and September 30, 2013, investments in debt securities classified as available-for-sale (AFS) mature as follows:
September 30, 2014
(in millions)
Due in Estimated
Fair ValueLess than 1 year 1 year or more
U.S. government obligations $ 287.6 $ 379.2 $ 666.8
September 30, 2013
(in millions)
Due in Estimated
Fair ValueLess than 1 year 1 year or more
U.S. government obligations $ 568.5 $ — $ 568.5
Mortgage-backed securities — 5.3 5.3
$ 568.5 $ 5.3 $ 573.8
During the year ended September 30, 2014, the Company sold
all of its investments in mortgage-backed securities and the U.S.
government obligations there were held as of September 30,
2013, matured, and as a result, realized gains of $0.1 million,
net of tax, were reclassified from OCI for the year ended
September 30, 2014.
Except as discussed previously, there were no other sales of
AFS Securities during years ended September 30, 2014 and
September 30, 2013, and as a result, no additional realized gains
or losses were recorded for the years ended September 30, 2014
and September 30, 2013. e company recognized changes in
unrealized gains on available-for-sale securities of $0.2 million
during the year ended September 30, 2014.