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SEC Filings

10-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 10-K on 02/23/2015
Entire Document
 
Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)

Note 3:  Earnings Per Share
The following sets forth basic and diluted earnings per common share available to IPG common stockholders.
 
Years ended December 31,
 
2014
 
2013
 
2012
Net income available to IPG common stockholders - basic
$
477.1

 
$
259.2

 
$
435.1

Adjustments: Effect of dilutive securities
 
 
 
 
 
     Interest on 4.25% Notes 1
0.0

 
0.0

 
0.3

     Interest on 4.75% Notes 1
0.0

 
0.8

 
4.1

Dividends on preferred stock
0.0

 
0.0

 
11.6

Net income available to IPG common stockholders - diluted
$
477.1

 
$
260.0

 
$
451.1

 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average number of common shares outstanding - basic
419.2

 
421.1

 
432.5

Add: Effect of dilutive securities
 
 
 
 
 
     Restricted stock, stock options and other equity awards
6.2

 
5.2

 
7.2

     4.25% Notes 1
0.0

 
0.0

 
7.9

     4.75% Notes 1
0.0

 
3.3

 
16.9

Preferred stock outstanding 2
0.0

 
0.0

 
16.9

 
 
 
 
 
 
Weighted-average number of common shares outstanding - diluted
425.4

 
429.6

 
481.4

 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share available to IPG common stockholders - basic
$
1.14

 
$
0.62

 
$
1.01

Earnings per share available to IPG common stockholders - diluted
$
1.12

 
$
0.61

 
$
0.94

 
1
We retired all of our outstanding 4.75% Notes and 4.25% Convertible Senior Notes due 2023 in March 2013 and March 2012, respectively. See Note 2 for further information. For purposes of calculating diluted earnings per share for 2013 and 2012, the potentially dilutive shares are pro-rated based on the period they were outstanding.

2
We converted all of our 5 1/4% Series B Cumulative Convertible Perpetual Preferred Stock (the "Series B Preferred Stock") into common stock in October 2013. For purposes of calculating diluted earnings per share for 2013, the potentially dilutive shares would have been pro-rated based on the period they were outstanding but were antidilutive.
The following table presents the potential shares excluded from the diluted earnings per share calculation because the effect of including these potential shares would be antidilutive.
 
Years ended December 31,
 
2014
 
2013
 
2012
Preferred Stock Outstanding 1
0.0

 
13.7
 
0.0

Securities excluded from the diluted earnings per share calculation
because the exercise price was greater than the average market price:
 
 
 
 
 
Stock options 2
0.0

 
0.1

 
6.6

 
1
We converted all of our Series B Preferred Stock into common stock in October 2013. For purposes of calculating diluted earnings per share for 2013, the potentially dilutive shares would have been pro-rated based on the period they were outstanding but were antidilutive.

2
These options were outstanding at the end of the respective periods. In any period in which the exercise price is less than the average market price, these options have the potential to be dilutive, and application of the treasury stock method would reduce this amount.

Note 4:  Acquisitions
We continue to evaluate strategic opportunities to expand our industry expertise, strengthen our position in high-growth and key strategic geographical markets and industry sectors, advance technological capabilities and improve operational efficiency through both acquisitions and increased ownership interests in current investments. Our acquisitions typically provide for an initial payment at the time of closing and additional contingent purchase price payments based on the future performance of the acquired entity. We have entered into agreements that may require us to purchase additional equity interests in certain consolidated and unconsolidated subsidiaries. The amounts at which we record these transactions in our financial statements are based on estimates

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