IPG
    Print Page  Close Window

SEC Filings

10-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 10-K on 02/23/2015
Entire Document
 

Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)



Restructuring and Other Reorganization-Related Charges (Reversals), net
The components of restructuring and other reorganization-related charges (reversals), net are listed below.
 
Years ended December 31,
 
2014
 
2013
 
2012
Severance and termination costs
$
0.1

 
$
55.9

 
$
0.0

Lease termination costs
0.1

 
4.2

 
(1.1
)
Other exit costs
0.0

 
0.5

 
(0.1
)
Total restructuring and other reorganization-related charges (reversals), net
$
0.2

 
$
60.6

 
$
(1.2
)
2013 Restructuring Plan
In the fourth quarter of 2013, we implemented a cost savings initiative (the "2013 Plan") to better align our cost structure with our revenue, primarily in Continental Europe. In connection with this initiative, we identified and initiated restructuring actions resulting in pre-tax charges in 2013 of $61.2 related to the 2013 Plan, comprised of severance and termination costs of $55.9, lease termination costs of $4.8 and other exit costs of $0.5. In 2014, we recorded an additional $0.1 of net restructuring charges related to the 2013 Plan. All restructuring actions were substantially completed by the end of the first quarter of 2014, with remaining payments expected to be made through 2021.
A summary of the 2013 Plan restructuring liability activity is listed below.
 
 
December 31, 2013
 
Net Restructuring Charges
 
Cash Payments
 
Foreign Currency Translation Adjustment
 
December 31, 2014
Severance and termination costs
 
$
46.5

 
$
0.1

 
$
(41.8
)
 
$
(0.4
)
 
$
4.4

Lease termination costs
 
3.9

 
0.0

 
(1.2
)
 
(0.1
)
 
2.6

Other exit costs
 
0.5

 
0.0

 
(0.5
)
 
0.0

 
0.0

Total
 
$
50.9

 
$
0.1

 
$
(43.5
)
 
$
(0.5
)
 
$
7.0

Net restructuring charges related to the 2013 Plan for the year ended December 31, 2014, were comprised of net charges of approximately $0.3 at IAN ("Integrated Agency Network") and net reversals of approximately $0.2 at CMG ("Constituency Management Group").
Prior Restructuring Plans
The 2007, 2003 and 2001 restructuring plans (the "Prior Restructuring Plans") with current year activity included net charges (reversals) that are adjustments primarily resulting from changes in management’s estimates relating to sublease rental income assumptions. For the years ended December 31, 2014, 2013 and 2012, the Prior Restructuring Plans incurred net restructuring and other reorganization-related charges of $0.1 and net reversals of $0.6 and $1.2, respectively. As of December 31, 2014, the remaining liability for the Prior Restructuring Plans was $1.1.

EXPENSES AND OTHER INCOME
 
Years ended December 31,
 
2014
 
2013
 
2012
Cash interest on debt obligations
$
(78.9
)
 
$
(110.7
)
 
$
(130.6
)
Non-cash interest
(6.0
)
 
(12.0
)
 
(2.9
)
Interest expense
(84.9
)
 
(122.7
)
 
(133.5
)
Interest income
27.4

 
24.7

 
29.5

Net interest expense
(57.5
)
 
(98.0
)
 
(104.0
)
Other (expense) income, net
(10.2
)
 
(32.3
)
 
100.5

Total (expenses) and other income
$
(67.7
)
 
$
(130.3
)
 
$
(3.5
)


19