Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
December 31, 2015, the applicable margin was 0.30% for base rate advances and 1.30% for Eurocurrency rate advances. Letter of credit fees accrue on the average daily aggregate amount of letters of credit outstanding, at a rate equal to the applicable margin for Eurocurrency rate advances, and fronting fees accrue on the aggregate amount of letters of credit outstanding at an annual rate of 0.25%. We also pay a facility fee at an annual rate that is determined based on our credit ratings, which as of December 31, 2015, was 0.20% on the aggregate lending commitment under the Credit Agreement.
In addition to other and customary covenants, the Credit Agreement requires that we maintain the financial covenants listed below as of the end of each fiscal quarter for the period of four fiscal quarters then ended.
Interest coverage ratio (not less than): 1
Leverage ratio (not greater than): 2
The interest coverage ratio is defined as EBITDA, as defined in the Credit Agreement, to net interest expense.
The leverage ratio is defined as debt as of the last day of such fiscal quarter to EBITDA, as defined in the Credit Agreement, for the four quarters then ended. The leverage ratio may be changed to not more than 4.00 to 1 at our election for four consecutive fiscal quarters, beginning with the fiscal quarter in which there is an occurrence of one or more acquisitions with an aggregate purchase price of at least $200.0.
We were in compliance with all of our covenants in the Credit Agreement as of December 31, 2015.
We aggregate our domestic cash position on a daily basis. Outside the United States, we use cash pooling arrangements with banks to help manage our liquidity requirements. In these pooling arrangements, several IPG agencies agree with a single bank that the cash balances of any of the agencies with the bank will be subject to a full right of set-off against amounts other agencies owe the bank, and the bank provides for overdrafts as long as the net balance for all agencies does not exceed an agreed-upon level. Typically, each agency pays interest on outstanding overdrafts and receives interest on cash balances. Our Consolidated Balance Sheets reflect cash, net of bank overdrafts, under all of our pooling arrangements, and as of December 31, 2015 and 2014 the amounts netted were $1,608.3 and $1,590.7, respectively.
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,
Net income available to IPG common stockholders - basic
Adjustments: Effect of dilutive securities
Interest on 4.75% Notes 1
Net income available to IPG common stockholders - diluted
Weighted-average number of common shares outstanding - basic
Add: Effect of dilutive securities
Restricted stock, stock options and other equity awards
4.75% Notes 1
Weighted-average number of common shares outstanding - diluted
Earnings per share available to IPG common stockholders - basic
Earnings per share available to IPG common stockholders - diluted
We retired all of our outstanding 4.75% Convertible Senior Notes due 2023 (the "4.75% Notes") in March 2013. For purposes of calculating diluted earnings per share for 2013, the potentially dilutive shares are pro-rated based on the period in which they were outstanding.