INTL FCStone 2014 Annual Report Download - page 98

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INTL FCSTONE INC. Form 10K82
PART II
ITEM 8 Financial Statements and Supplementary Data
NOTE 7 Property and Equipment, net
Property and equipment are stated at cost, and reported net of
accumulated depreciation on the consolidated balance sheets.
Depreciation on plant and equipment is calculated on the
straight-line method over the estimated useful lives of the assets.
e estimated useful lives of property and equipment range
from 3 to 10 years. During the fiscal years ended September 30,
2014, 2013 and 2012, depreciation expense was $5.7 million,
$5.8 million and $4.7 million, respectively.
A summary of property and equipment, at cost less accumulated depreciation as of September 30, 2014 and 2013 is as follows:
(in millions)
September 30, 2014 September 30, 2013
Property and equipment:
Furniture and fixtures $ 5.2 $ 6.0
Software 6.2 6.0
Equipment 10.9 10.2
Leasehold improvements 9.3 9.6
Total property and equipment 31.6 31.8
Less accumulated depreciation (15.7) (14.3)
Property and equipment, net $ 15.9 $ 17.5
NOTE 8 Goodwill
Commencing during the quarter ended March 31, 2014, the
Company’s operating segments were reorganized into new
reportable segments. e Company’s physical precious metals
business was moved into the Physical Commodities reportable
segment. As a result, during the fiscal year ended September 30,
2014, the goodwill associated with the precious metals business
was moved from the Commercial Hedging (formerly known as
Commodity and Risk Management Services) segment to the
new Physical Commodities segment. e goodwill reported in
the Commodity and Risk Management Services segment was
$33.1 million in the prior year presentation. See discussion in
Note 22 related to the reorganization of segments.
Goodwill allocated to the Company’s operating segments as of September 30, 2014 and 2013 is as follows:
(in millions)
September 30, 2014 September 30, 2013
Commercial Hedging $ 30.7 $ 30.7
Global Payments 6.3 6.3
Physical Commodities 2.4 2.4
Securities 8.1 8.1
Goodwill $ 47.5 $ 47.5
NOTE 9 Intangible Assets
e gross and net carrying values of intangible assets as of the balance sheet dates, by major intangible asset class are as follows:
(in millions)
September 30, 2014 September 30, 2013
Gross
Amount
Accumulated
Amortization
Net
Amount
Gross
Amount
Accumulated
Amortization
Net
Amount
Intangible assets subject to amortization
Noncompete agreement $ 3.7 $ (3.7) $ — $ 3.7 $ (3.7) $ —
Trade name 0.7 (0.7) — 0.7 (0.7) —
Software programs/platforms 2.2 (1.9) 0.3 2.2 (1.5) 0.7
Customer base 12.9 (3.8) 9.1 12.4 (2.6) 9.8
19.5 (10.1) 9.4 19.0 (8.5) 10.5
Intangible assets not subject to amortization
Trade name 1.1 — 1.1 1.1 — 1.1
Total intangible assets $ 20.6 $ (10.1) $ 10.5 $ 20.1 $ (8.5) $ 11.6
Amortization expense related to intangible assets was $1.6 million, $2.2 million, and $2.5 million for the fiscal years ended
September 30, 2014, 2013 and 2012, respectively.