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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)

Stock-Based Compensation
We grant other stock-based compensation awards such as stock-settled awards, cash-settled awards and performance-based awards (settled in cash or shares) to certain key employees. The number of shares or units received by an employee for performance-based awards depends on Company performance against specific performance targets and could range from 0% to 300% of the target amount of shares originally granted. Incentive awards are subject to certain restrictions and vesting requirements as determined by the Compensation Committee. The fair value of the shares on the grant date is amortized over the vesting period, which is generally three years. Upon completion of the vesting period for cash-settled awards, the grantee is entitled to receive a payment in cash based on the fair market value of the corresponding number of shares of common stock. No monetary consideration is paid by a recipient for any incentive award. The fair value of cash-settled awards is adjusted each quarter based on our share price. The holders of stock-settled awards have absolute ownership interest in the underlying shares of common stock prior to vesting, which includes the right to vote and receive dividends. Dividends declared on common stock are accrued during the vesting period and paid when the award vests. The holders of cash-settled and performance-based awards have no ownership interest in the underlying shares of common stock until the awards vest and the shares of common stock are issued.
Stock-based compensation awards expected to be settled in cash have been classified as liabilities in our Consolidated Balance Sheets as of December 31, 2014 and 2013.
 
 
Years ended December 31,
 
 
2014
 
2013
 
2012
Stock-Settled Awards:
 
 
 
 
 
 
Awards granted
 
1.2

 
1.1

 
0.9

Weighted-average grant-date fair value (per award)
 
$
17.77

 
$
13.51

 
$
11.43

Total fair value of vested awards distributed
 
$
12.6

 
$
35.4

 
$
63.5

Cash-Settled Awards:
 
 
 
 
 
 
Awards granted
 
0.1
 
0.1
 
0.1

Weighted-average grant-date fair value (per award)
 
$
18.20

 
$
16.35

 
$
10.94

Total fair value of vested awards distributed
 
$
0.6

 
$
5.4

 
$
11.1

Performance-Based Awards:
 
 
 
 
 
 
Awards granted
 
3.5

 
1.5

 
1.8

Weighted-average grant-date fair value (per award)
 
$
16.56

 
$
11.97

 
$
10.61

Total fair value of vested awards distributed
 
$
15.3

 
$
0.2

 
$
11.5

In conjunction with common stock dividends declared in 2014 and 2013, we accrued dividends of $0.8 and $0.7, respectively, on non-vested stock-settled awards and paid $0.5 and $1.5 for stock-settled awards that vested during 2014 and 2013, respectively.
A summary of the activity of our non-vested stock-settled awards, cash-settled awards, and performance-based awards during 2014 is presented below (performance-based awards are shown at 100% of the shares originally granted).
 
 
Stock-Settled Awards
 
Cash-Settled Awards
 
Performance-Based Awards
 
 
Awards
 
Weighted-
Average
Grant-Date
Fair Value
(per award)
 
Awards
 
Weighted-
Average
Grant-Date
Fair Value
(per award)
 
Awards
 
Weighted-
Average
Grant-Date
Fair Value
(per award)
Non-vested as of January 1, 2014
 
1.9

 
$
12.54

 
0.1

 
$
12.03

 
4.1

 
$
11.71

Granted
 
1.2

 
17.77

 
0.1

 
18.20

 
3.5

 
16.56

Vested
 
(0.8
)
 
12.15

 
(0.1
)
 
8.36

 
(0.9
)
 
12.24

Forfeited
 
(0.1
)
 
12.53

 
0.0

 
0.00

 
(0.9
)
 
12.76

Non-vested as of December 31, 2014
 
2.2

 
15.47

 
0.1

 
16.99

 
5.8

 
14.39

Total unrecognized compensation expense remaining
 
$
14.3

 
 
 
$
1.4

 
 
 
$
58.1

 
 
Weighted-average years expected to be recognized over
 
1.6

 
 
 
2.0

 
 
 
2.0

 
 
During 2014, 2013 and 2012, additional performance cash awards with a total target value of $2.9, $35.6 and $33.6, respectively, were awarded under the 2014 PIP and 2009 PIP and will be settled in shares upon vesting, which is three years from the grant date. The total fair value of the vested awards distributed during the years ended December 31, 2014 and 2013 was $19.8 and

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