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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)



Dividends – During 2014, we paid four quarterly cash dividends of $0.095 per share on our common stock, which corresponded to an aggregate dividend payment of $159.0. On February 13, 2015, we announced that our Board had declared a common stock cash dividend of $0.12 per share, payable on March 16, 2015 to holders of record as of the close of business on March 2, 2015. Assuming we pay a quarterly dividend of $0.12 per share and there is no significant change in the number of outstanding shares as of December 31, 2014, we would expect to pay approximately $200.0 over the next twelve months.

Restructuring – In 2014, we paid cash of $43.5 in connection with restructuring actions. We expect to pay approximately $5.0 in 2015, with remaining cash payments in relation to such restructuring actions expected to be made through 2021.

Contributions to pension plans – Our funding policy regarding our pension plans is to make contributions necessary to satisfy minimum pension funding requirements, plus such additional contributions as we consider appropriate to improve the plans’ funded status. During 2014, we contributed $2.7 and $25.7 of cash to our domestic and foreign pension plans, respectively. For 2015, we expect to contribute approximately $3.0 and $24.0 of cash to our domestic and foreign pension plans, respectively.

Other payments and obligations – In 2014, we paid cash of approximately $1.2 pursuant to a licensing agreement and acquisition of the rights to use a trademark. We expect to make a final cash payment of approximately $30.0 in 2015.

The following summarizes our estimated contractual cash obligations and commitments as of December 31, 2014 and their effect on our liquidity and cash flow in future periods.
 
Years ended December 31,
 
Thereafter
 
Total
 
2015
 
2016
 
2017
 
2018
 
2019
 
Long-term debt 1
$
2.1

 
$
2.2

 
$
324.2

 
$
2.0

 
$
2.0

 
$
1,293.1

 
$
1,625.6

Interest payments on long-term debt 1
58.8

 
58.8

 
58.6

 
51.9

 
49.8

 
179.0

 
456.9

Non-cancelable operating lease obligations 2
320.0

 
286.1

 
247.2

 
222.2

 
198.9

 
845.1

 
2,119.5

Contingent acquisition payments 3
95.7

 
86.3

 
86.1

 
15.7

 
21.3

 
7.9

 
313.0

Uncertain tax positions 4
30.7

 
104.5

 
61.6

 
20.4

 
3.8

 
17.0

 
238.0

Total
$
507.3

 
$
537.9

 
$
777.7

 
$
312.2

 
$
275.8

 
$
2,342.1

 
$
4,753.0

 
1
Amounts represent maturity at book value and interest payments based on contractual obligations. We may redeem all or some of the 2.25% Senior Notes due 2017, the 4.00% Senior Notes due 2022 , the 3.75% Senior Notes due 2023 and the 4.20% Senior Notes due 2024 at the greater of the principal amount of the notes to be redeemed and a "make-whole" amount, plus, in each case, accrued and unpaid interest to the date of redemption.

2
Non-cancelable operating lease obligations are presented net of future receipts on contractual sublease arrangements.

3
We have structured certain acquisitions with additional contingent purchase price obligations based on factors including future performance of the acquired entity. See Note 4 and Note 14 to the Consolidated Financial Statements for further information.

4
The amounts presented are estimates due to inherent uncertainty of tax settlements, including the ability to offset liabilities with tax loss carryforwards.

Share Repurchase Program
In February 2013, our Board authorized a new share repurchase program to repurchase from time to time up to $300.0, excluding fees, of our common stock (the "2013 Share Repurchase Program"). In March 2013, the Board authorized an increase in the amount available under our 2013 Share Repurchase Program up to $500.0, excluding fees, of our common stock to be used towards the repurchase of shares resulting from the conversion to common stock of the 4.75% Notes. We fully utilized the 2013 Share Repurchase Program as of the third quarter of 2014. In February 2014, the Board authorized a new share repurchase program to repurchase from time to time up to $300.0, excluding fees, of our common stock (the "2014 Share Repurchase Program"). As of December 31, 2014, $143.6 remained available for repurchase under the 2014 Share Repurchase Program.
On February 13, 2015, we announced that our Board had approved a new share repurchase program to repurchase from time to time up to $300.0, excluding fees, of our common stock. The new authorization is in addition to any amounts remaining available for repurchase under the 2014 Share Repurchase Program.
We may effect such repurchases through open market purchases, trading plans established in accordance with SEC rules, derivative transactions or other means. We expect to continue to repurchase our common stock in future periods, although the

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