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SEC Filings

10-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 10-K on 02/22/2016
Entire Document
 
Notes to Consolidated Financial Statements
(Amounts in Millions, Except Per Share Amounts)


there is APIC in the same class of stock, and any remaining amount to retained earnings. These retired shares remain authorized but unissued.
In October 2015, we retired 11.3 shares of our treasury stock, which resulted in a reduction in common stock of $1.2, treasury stock of $233.2 and APIC of $232.0. There was no effect on total stockholders' equity as a result of the retirement. In November 2014, we retired 121.9 shares of our treasury stock, which resulted in a reduction in common stock of $12.2, treasury stock of $1,522.4 and APIC of $1,510.2. There was no effect on total stockholders' equity as a result of the retirement.

Note 2:  Debt and Credit Arrangements
Long-Term Debt
A summary of the carrying amounts and fair values of our long-term debt is listed below.
 
Effective
Interest Rate
 
December 31,
2015
 
2014
 
Book
Value
 
Fair
Value 1
 
Book
Value
 
Fair
Value
1
2.25% Senior Notes due 2017 (less unamortized discount and issuance costs of $0.3 and $0.9, respectively)
2.30
%
 
$
298.8

 
$
299.3

 
$
298.3

 
$
301.2

4.00% Senior Notes due 2022 (less unamortized discount and issuance costs of $2.0 and $1.6, respectively)
4.13
%
 
246.4

 
250.9

 
245.9

 
255.2

3.75% Senior Notes due 2023 (less unamortized discount and issuance costs of $1.1 and $2.9, respectively)
4.32
%
 
496.0

 
484.8

 
495.5

 
499.8

4.20% Senior Notes due 2024 (less unamortized discount and issuance costs of $0.8 and $3.4, respectively)
4.24
%
 
495.8

 
496.4

 
495.0

 
509.8

Other notes payable and capitalized leases
 
 
75.2

 
75.2

 
80.3

 
80.3

Total long-term debt
 
 
1,612.2

 
 
 
1,615.0

 
 
Less: current portion
 
 
1.9

 
 
 
2.1

 
 
Long-term debt, excluding current portion
 
 
$
1,610.3

 
 
 
$
1,612.9

 
 
 
1
See Note 11 for information on the fair value measurement of our long-term debt.

Annual maturities are scheduled as follows based on the book value as of December 31, 2015.
2016
$
1.9

2017
323.3

2018
1.8

2019
1.8

2020
0.9

Thereafter
1,282.5

Total long-term debt
$
1,612.2


For those debt securities that have a premium or discount at the time of issuance, we amortize the amount through interest expense based on the maturity date or the first date the holders may require us to repurchase the debt securities, if applicable. A premium would result in a decrease in interest expense and a discount would result in an increase in interest expense in future periods.
Additionally, we have debt issuance costs related to certain financing transactions which are also amortized through interest expense. In April 2015, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update No. 2015-03 which requires debt issuance costs to be presented as a direct deduction from the carrying value of the associated debt liability rather than as separate assets on the balance sheet. The FASB later issued guidance in August 2015 stating that debt issuance costs related to line-of-credit arrangements may be presented as an asset and subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We have adopted this amended guidance as of the quarter ended December 31, 2015. As a result of this adoption, $8.9 and $10.6 of debt issuance costs were reclassified from Other non-current assets to Long-term debt in our Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively. Debt issuance costs associated with our committed corporate credit facility continue to be recorded

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