XML 48 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Earnings per Share
 9 Months Ended
Jun. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Earnings per Share
The Company presents basic and diluted earnings per share ("EPS") using the two-class method which requires all outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends and therefore participate in undistributed earnings with common stockholders be included in computing earnings per share. Under the two-class method, net earnings are reduced by the amount of dividends declared in the period for each class of common stock and participating security. The remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. Restricted stock awards granted to certain employees and directors and shares held in trust for the Provident Group acquisition contain non-forfeitable rights to dividends at the same rate as common stock, and are considered participating securities.
Basic EPS has been computed by dividing net income by the weighted-average number of common shares outstanding. The following is a reconciliation of the numerator and denominator of the diluted net income per share computations for the periods presented below.
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
(in millions, except share amounts)
2012
 
2011
 
2012
 
2011
 Numerator:
 
 
 
 
 
 
 
 Income from continuing operations attributable to INTL FCStone Inc. stockholders
$
4.7

 
$
10.4

 
$
6.7

 
$
29.6

 Less: Allocation to participating securities
(0.2
)
 
(0.3
)
 
(0.1
)
 
(0.8
)
Interest on convertible debt, net of tax
—

 
—

 
—

 
0.6

Less: Allocation to participating securities
—

 
—

 
—

 
—

Income from continuing operations allocated to common stockholders
$
4.5

 
$
10.1

 
$
6.6

 
$
29.4

Income from discontinued operations
$
—

 
$
—

 
$
—

 
$
0.2

 Less: Allocation to participating securities
—

 
—

 
—

 
—

 Income from discontinued operations allocated to common stockholders
$
—

 
$
—

 
$
—

 
$
0.2

 Diluted net income
$
4.7

 
$
10.4

 
$
6.7

 
$
30.4

 Less: Allocation to participating securities
(0.2
)
 
(0.3
)
 
(0.1
)
 
(0.8
)
Diluted net income allocated to common stockholders
$
4.5

 
$
10.1

 
$
6.6

 
$
29.6

 Denominator:
 
 
 
 
 
 
 
 Weighted average number of:
 
 
 
 
 
 
 
 Common shares outstanding
18,392,823


17,901,613

 
18,286,308

 
17,714,916

 Dilutive potential common shares outstanding:
 
 
 
 

 

 Share-based awards
705,844

 
932,765

 
870,163

 
952,813

 Convertible debt
—

 
446,318

 
—

 
640,932

Total dilutive potential common shares outstanding
705,844

 
1,379,083

 
870,163

 
1,593,745

 Diluted weighted-average shares
19,098,667

 
19,280,696

 
19,156,471

 
19,308,661


The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense required under the Compensation – Stock Compensation Topic of the ASC. The dilutive effect of convertible debt is reflected in diluted net income per share by application of the if-converted method.
Options to purchase 634,766 and 384,183 shares of common stock for the three months ended June 30, 2012 and 2011, respectively, and 749,413 and 391,031 shares of common stock for the nine months ended June 30, 2012 and 2011, respectively, were excluded from the calculation of diluted earnings per share because they would have been anti-dilutive.