XML 50 R29.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Segment and Geographic Information (Notes) | 12 Months Ended
--- | ---
Sep. 30, 2016
Segment Analysis [Abstract] |
Segment Reporting Disclosure [Text Block] | Segment and Geographic Information The Company reports its operating segments based on services provided to customers. The Company’s business activities are managed as operating segments and organized into reportable segments as follows:
• | Commercial Hedging (includes components Financial Agricultural (Ag) & Energy and LME Metals)
• | Global Payments
• | Securities (includes components Equity Market-Making, Debt Trading, Investment Banking, and Asset Management)
• | Physical Commodities (includes components Precious Metals and Physical Ag & Energy)
• | Clearing and Execution Services (includes components Exchange-traded Futures and Options, FX Prime Brokerage, Correspondent Clearing and Independent Wealth Management)
Commercial Hedging The Company serves its commercial customers through its team of risk management consultants, providing a high-value-added service that we believe differentiates it from its competitors and maximizes the opportunity to retain customers. The Company’s risk management consulting services are designed to quantify and monitor commercial entities’ exposure to commodity and financial risk. Upon assessing this exposure the Company develops a plan to control and hedge these risks with post-trade reporting against specific ccustomer objectives. Customers are assisted in the execution of their hedging strategies through a wide range of products from listed exchange-traded futures and options, to basic OTC instruments that offer greater flexibility, to structured OTC products designed for customized solutions. The Company’s services span virtually all traded commodity markets, with the largest concentrations in agricultural and energy commodities (consisting primarily of grains, energy and renewable fuels, coffee, sugar, cotton, and food service) and base metals. The Company’s base metals business includes a position as a Category One ring dealing member of the LME, providing execution, clearing and advisory services in exchange-traded futures and OTC products. The Company also provides execution of foreign currency forwards and options and interest rate swaps as well as a wide range of structured product solutions to commercial customers who are seeking cost-effective hedging strategies. Generally, customers direct their own trading activity and the Company’s risk management consultants do not have discretionary authority to transact trades on behalf of customers. Global Payments The Company provides global payment solutions to banks and commercial businesses as well as charities and non-governmental organizations and government organizations. The Company offers payments services in over 175 countries and 140 currencies, which it believes is more than any other payments solution provider, and provides competitive and transparent pricing. Its proprietary FXecute global payments platform is integrated with a financial information exchange (“FIX”) protocol. This FIX protocol is an electronic communication method for the real-time exchange of information, and the Company believes it represents one of the first FIX offerings for cross-border payments in exotic currencies. FIX functionality allows customers to view real time market rates for various currencies, execute and manage orders in real-time, and view the status of their payments through the easy-to-use portal. Additionally, as a member of SWIFT (Society for Worldwide Interbank Financial Telecommunication), the Company is able to offer its services to large money center and global banks seeking more competitive international payments services. Through this single comprehensive platform and our commitment to customer service, the Company believes it is able to provide simple and fast execution, ensuring delivery of funds in any of these countries quickly through its global network of approximately 300 correspondent banks. In this business, the Company primarily acts as a principal in buying and selling foreign currencies on a spot basis. The Company derives revenue from the difference between the purchase and sale prices. The Company believes its customers value its ability to provide exchange rates that are significantly more competitive than those offered by large international banks, a competitive advantage that stems from its years of foreign exchange expertise focused on smaller, less liquid currencies. Securities The Company provides value-added solutions that facilitate cross-border trading and believes its customers value the Company’s ability to manage complex transactions, including foreign exchange, utilizing its local understanding of market convention, liquidity and settlement protocols around the world. The Company’s customers include U.S.-based regional and national broker-dealers and institutions investing or executing customer transactions in international markets and foreign institutions seeking access to the U.S. securities markets. The Company is one of the leading market makers in foreign securities, including unlisted ADRs, GDRs and foreign ordinary shares. The Company makes markets in over 3,600 ADRs, GDRs and foreign ordinary shares , of which over 2,000 trade in the OTC market. In addition, it will, on request, make prices in more than 10,000 unlisted foreign securities. The Company is a broker-dealer in Argentina where we are active in providing institutional executions in the local capital markets. The Company acts as an institutional dealer in fixed income securities, including U.S. Treasury, U.S. government agency, agency mortgage-backed and asset-backed securities to a customer base including asset managers, commercial bank trust and investment departments, broker-dealers and insurance companies. The Company also originates, structures and places debt instruments in the international and domestic capital markets. These instruments include complex asset-backed securities (primarily in Argentina) and domestic municipal securities. On occasion, the Company may invest its own capital in debt instruments before selling them. The Company also actively trades in a variety of international debt instruments and operates an asset management business in which it earns fees, commissions and other revenues for management of third party assets and investment gains or losses on its investments in funds and proprietary accounts managed either by its investment managers or by independent investment managers. Physical Commodities This segment consists of the Company’s physical Precious Metals trading and Physical Agricultural and Energy commodity businesses. In Precious Metals, the Company provides a full range of trading and hedging capabilities, including OTC products, to select producers, consumers, and investors. In the Company’s trading activities, it acts as a principal, committing its own capital to buy and sell precious metals on a spot and forward basis. The Company’s Physical Ag & Energy commodity business provides financing to commercial commodity-related companies against physical inventories, including grain, lumber, meats, energy products and renewable fuels. The Company uses sale and repurchase agreements to purchase commodities evidenced by warehouse receipts, subject to a simultaneous agreement to sell such commodities back to the original seller at a later date. Transactions where the sale and repurchase price are fixed upon execution are accounted for as product financing arrangements, and accordingly no commodity inventory, purchases or sales are recorded. Transactions where the repurchase price is not fixed upon execution do not meet all of the criteria to be accounted for as product financing arrangements and, thus, are recorded as commodity inventory, purchases, and sales. Additionally, the Company engages as a principal in physical purchase and sale transactions related to inputs to the renewable fuels and feed ingredient industries. On April 10, 2015 (the “transfer date”), the Company transitioned the portion of its Precious Metals business conducted through its unregulated domestic subsidiary, INTL Commodities Inc., to its U.K. based broker-dealer subsidiary, INTL FCStone Ltd. INTL FCStone Ltd is regulated by the Financial Conduct Authority (“FCA”), the regulator of the financial services industry in the U.K. Subsequent to the transfer, precious metals inventory held by INTL FCStone Ltd is measured at fair value, with changes in fair value included as a component of ‘trading gains, net’ on the consolidated income statement, in accordance with U.S. GAAP accounting requirements for broker-dealers. Precious metals inventory held by subsidiaries that are not broker-dealers continues to be valued at the lower of cost or market value. Prior to the transfer, INTL Commodities Inc.’s precious metals sales and costs of sales were recorded on a gross basis in accordance with the Revenue Recognition Topic of the ASC. Subsequent to the transfer, INTL FCStone Ltd’s precious metals sales and cost of sales are presented on a net basis and included as a component of ‘trading gains, net’ on the consolidated income statements, in accordance with U.S GAAP accounting requirements for broker-dealers. Precious metals sales and cost of sales for subsidiaries that are not broker-dealers continue to be recorded on a gross basis. The Company records its Physical Ag & Energy commodities revenues on a gross basis. Operating revenues and losses from its precious metals commodities derivatives activities are included in ‘trading gains, net’ in the consolidated income statements. Operating revenues and losses from its agricultural and energy commodities derivative activities are included in ‘cost of sales of physical commodities’ in the consolidated income statements. The agricultural commodity inventories are carried at net realizable value, which approximates fair value less disposal costs. The agricultural inventories have reliable, readily determinable and realizable market prices, have relatively insignificant costs of disposal and are available for immediate delivery. The Company generally mitigates the price risk associated with commodities held in inventory through the use of derivatives. The Company does not elect hedge accounting under U.S. GAAP in accounting for this price risk mitigation. Clearing and Execution Services (CES) The Company provides competitive and efficient clearing and execution in all major futures and securities exchanges globally as well as prime brokerage in all major foreign currency pairs and swap transactions. Through its platform, customer orders are accepted and directed to the appropriate exchange for execution. The Company then facilitates the clearing of customers’ transactions. Clearing involves the matching of customers’ trades with the exchange, the collection and management of customer margin deposits to support the transactions, and the accounting and reporting of the transactions to customers. As of September 30, 2016, the Company held $2.1 billion in required customer segregated assets, which it believes makes it the third largest independent futures commission merchant (“FCM”) in the United States not affiliated with a major financial institution or commodity intermediary, end-user or producer, as measured by required customer segregated assets. The Company seeks to leverage its capabilities and capacity by offering facilities management or outsourcing solutions to other FCM’s. Following the Company’s acquisition of the Sterne Agee correspondent securities clearing business, it is an independent full-service provider to introducing broker-dealers (“IBD’s”) of clearing, custody, research, syndicated and security-based lending products and services, including a proprietary technology platform which offers seamless connectivity to ensure a positive customer experience through the clearing and settlement process. Also as part of this transaction, the Company acquired Sterne Agee’s independent wealth management business which offers a comprehensive product suite to retail customers nationwide. As a result it is one of the leading mid-market clearer’s in the securities industry, clearing for 50 correspondent clearing customers and in aggregate over 120,000 underlying individual retail securities accounts with over $12 billion in assets under management (“AUM”) as of September 30, 2016. In addition, the Company believes it is one of the largest non-bank prime brokers and swap dealers in the world. Through this offering, it provides prime brokerage foreign exchange services to financial institutions and professional traders. The Company provides its customers with the full range of OTC products, including 24-hour a day execution of spot, forwards and options as well as non-deliverable forwards in both liquid and exotic currencies. The Company also operates a proprietary foreign exchange desk that arbitrages the exchange-traded foreign exchange markets with the cash markets. ******** The total revenues reported combine gross revenues for the physical commodities business and net revenues for all other businesses. In order to reflect the way that the Company’s management views the results, the tables below also reflect the segment contribution to ‘operating revenues’, which is shown on the face of the consolidated income statements and which is calculated by deducting physical commodities cost of sales from total revenues. Segment data includes the profitability measure of net contribution by segment. Net contribution is one of the key measures used by management to assess the performance of each segment and for decisions regarding the allocation of the Company’s resources. Net contribution is calculated as revenue less direct cost of sales, transaction-based clearing expenses, variable compensation, introducing broker commissions, and interest expense. Variable compensation paid to risk management consultants/traders generally represents a fixed percentage of an amount equal to revenues generated, and in some cases, revenues produced less transaction-based clearing charges, base salaries and an overhead allocation. Segment data also includes segment income which is calculated as net contribution less non-variable direct expenses of the segment. These non-variable direct expenses include trader base compensation and benefits, operational employee compensation and benefits, communication and data services, business development, professional fees, bad debts and other direct expenses. Inter-segment revenues, charges, receivables and payables are eliminated upon consolidation, except revenues and costs related to foreign currency transactions undertaken on an arm’s length basis by the foreign exchange trading business for the securities business. The foreign exchange trading business competes for this business as it does for any other business. If its rates are not competitive, the securities businesses buy or sell their foreign currency through other market counterparties. On a recurring basis, the Company sweeps excess cash from certain operating segments to a centralized corporate treasury function in exchange for an intercompany receivable asset. The intercompany receivable asset is eliminated during consolidation, and therefore this practice may impact reported total assets between segments. Information concerning operations in these segments of business is shown in accordance with the Segment Reporting Topic of the ASC as follows:
| Year Ended September 30,
(in millions) | 2016 |  | 2015 |  | 2014
Total revenues: |  |  |  |  |
Commercial Hedging | $ | 236.1 |  |  | $ | 262.4 |  |  | $ | 224.0 |
Global Payments | 73.2 |  |  | 77.1 |  |  | 55.4 |
Securities | 175.2 |  |  | 129.8 |  |  | 80.3 |
Physical Commodities | 14,120.5 |  |  | 34,092.0 |  |  | 33,552.1 |
Clearing and Execution Services | 151.1 |  |  | 123.4 |  |  | 113.7 |
Corporate unallocated | (1.2 | ) |  | 8.5 |  |  | (3.1 | )
Total | $ | 14,754.9 |  |  | $ | 34,693.2 |  |  | $ | 34,022.4 |
Operating revenues (loss): |  |  |  |  |
Commercial Hedging | $ | 236.1 |  |  | $ | 262.4 |  |  | $ | 224.0 |
Global Payments | 73.2 |  |  | 77.1 |  |  | 55.4 |
Securities | 175.2 |  |  | 129.8 |  |  | 80.3 |
Physical Commodities | 36.6 |  |  | 23.1 |  |  | 20.6 |
Clearing and Execution Services | 151.1 |  |  | 123.4 |  |  | 113.7 |
Corporate unallocated | (1.2 | ) |  | 8.5 |  |  | (3.1 | )
Total | $ | 671.0 |  |  | $ | 624.3 |  |  | $ | 490.9 |
Net operating revenues (loss): |  |  |  |  |
Commercial Hedging | $ | 188.2 |  |  | $ | 214.7 |  |  | $ | 180.5 |
Global Payments | 65.3 |  |  | 68.5 |  |  | 48.2 |
Securities | 121.9 |  |  | 88.6 |  |  | 54.6 |
Physical Commodities | 31.5 |  |  | 21.2 |  |  | 17.9 |
Clearing and Execution Services | 48.8 |  |  | 38.3 |  |  | 29.7 |
Corporate unallocated | (11.8 | ) |  | 0.5 |  |  | (8.9 | )
Total | $ | 443.9 |  |  | $ | 431.8 |  |  | $ | 322.0 |
Net contribution: |  |  |  |  |
(Revenues less cost of sales, transaction-based clearing expenses, variable bonus compensation, introducing broker commissions and interest expense): |  |  |  |  |
Commercial Hedging | $ | 134.4 |  |  | $ | 151.7 |  |  | $ | 132.6 |
Global Payments | 52.2 |  |  | 54.5 |  |  | 37.6 |
Securities | 97.5 |  |  | 67.4 |  |  | 40.9 |
Physical Commodities | 23.4 |  |  | 16.9 |  |  | 14.1 |
Clearing and Execution Services | 39.5 |  |  | 30.1 |  |  | 24.0 |
Total | $ | 347.0 |  |  | $ | 320.6 |  |  | $ | 249.2 |
Segment income: |  |  |  |  |
(Net contribution less non-variable direct segment costs): |  |  |  |  |
Commercial Hedging | $ | 68.7 |  |  | $ | 85.6 |  |  | $ | 67.3 |
Global Payments | 39.8 |  |  | 43.3 |  |  | 28.3 |
Securities | 69.4 |  |  | 40.5 |  |  | 21.0 |
Physical Commodities | 13.3 |  |  | 5.8 |  |  | 5.9 |
Clearing and Execution Services | 14.8 |  |  | 12.9 |  |  | 6.3 |
Total | $ | 206.0 |  |  | $ | 188.1 |  |  | $ | 128.8 |
Reconciliation of segment income to income from continuing operations, before tax: |  |  |  |  |
Segment income | $ | 206.0 |  |  | $ | 188.1 |  |  | $ | 128.8 |
Costs not allocated to operating segments | 133.3 |  |  | 110.0 |  |  | 102.8 |
Income from continuing operations, before tax | $ | 72.7 |  |  | $ | 78.1 |  |  | $ | 26.0 |
(in millions) | As of September 30, 2016 |  | As of September 30, 2015 |  | As of September 30, 2014
Total assets: |  |  |  |  |
Commercial Hedging | $ | 1,637.5 |  |  | $ | 1,548.1 |  |  | $ | 1,400.9 |
Global Payments | 191.4 |  |  | 207.3 |  |  | 51.9 |
Securities | 2,130.7 |  |  | 1,861.0 |  |  | 235.5 |
Physical Commodities | 258.0 |  |  | 190.9 |  |  | 116.8 |
Clearing and Execution Services | 1,617.4 |  |  | 1,163.8 |  |  | 1,136.2 |
Corporate unallocated | 116.3 |  |  | 98.9 |  |  | 98.4 |
Total | $ | 5,951.3 |  |  | $ | 5,070.0 |  |  | $ | 3,039.7 |
Information regarding revenues and operating revenues for the years ended September 30, 2016, 2015, and 2014, and information regarding long-lived assets (defined as property, equipment, leasehold improvements and software) as of September 30, 2016, 2015, and 2014 in geographic areas were as follows:
| Year Ended September 30,
(in millions) | 2016 |  | 2015 |  | 2014
Total revenues: |  |  |  |  |
United States | $ | 817.1 |  |  | $ | 25,959.0 |  |  | $ | 19,055.3 |
Europe | 463.5 |  |  | 121.2 |  |  | 86.0 |
South America | 64.8 |  |  | 49.0 |  |  | 53.2 |
Asia | 13,405.1 |  |  | 8,560.0 |  |  | 14,822.4 |
Other | 4.4 |  |  | 4.0 |  |  | 5.5 |
Total | $ | 14,754.9 |  |  | $ | 34,693.2 |  |  | $ | 34,022.4 |
Operating revenues: |  |  |  |  |
United States | $ | 457.0 |  |  | $ | 424.3 |  |  | $ | 330.4 |
Europe | 120.2 |  |  | 125.0 |  |  | 86.0 |
South America | 64.8 |  |  | 49.0 |  |  | 53.2 |
Asia | 24.6 |  |  | 21.9 |  |  | 15.8 |
Other | 4.4 |  |  | 4.1 |  |  | 5.5 |
Total | $ | 671.0 |  |  | $ | 624.3 |  |  | $ | 490.9 |
(in millions) | As of September 30, 2016 |  | As of September 30, 2015 |  | As of September 30, 2014
Long-lived assets, as defined: |  |  |  |  |
United States | $ | 23.3 |  |  | $ | 13.8 |  |  | $ | 8.5 |
Europe | 4.8 |  |  | 4.0 |  |  | 5.0 |
South America | 1.2 |  |  | 1.7 |  |  | 2.0 |
Asia | 0.1 |  |  | 0.2 |  |  | 0.3 |
Other | — |  |  | — |  |  | 0.1 |
Total | $ | 29.4 |  |  | $ | 19.7 |  |  | $ | 15.9 |

X
- Definition Segment Analysis [Abstract] + References No definition available. + Details
Name: | intl_SegmentAnalysisAbstract
Namespace Prefix: | intl_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration