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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 – (continued)
(Amounts in Millions, Except Per Share Amounts)

acquired agencies have been integrated into one of our global networks or existing agencies. The most significant acquisitions include a  full-service digital agency in the U.K., a group of creative marketing agencies based in Russia, and a media planning and buying agency with significant digital capabilities in Canada. During 2015, we recorded approximately $61.0 of goodwill and intangible assets related to our acquisitions.
During 2014, we completed eight acquisitions, six of which were included in the IAN operating segment and two of which were included in the CMG operating segment. All acquired agencies have been integrated into one of our global networks or existing agencies. The most significant acquisitions included a global full-service digital agency, a digital agency in the United States and a search marketing agency in the Netherlands. During 2014, we recorded approximately $185.0 of goodwill and intangible assets related to these acquisitions.
During 2013, we completed eleven acquisitions, nine of which were included in the IAN operating segment and two of which were included in the CMG operating segment. All acquired agencies have been integrated into one of our global networks or existing agencies. The most significant acquisitions included a full-service digital agency in India, a full-service agency in the U.K. and a public relations consultancy in India. During 2013, we recorded approximately $97.0 of goodwill and intangible assets related to these acquisitions.
The results of operations of our acquired companies were included in our consolidated results from the closing date of each acquisition. We did not make any payments in stock related to our acquisitions in 2015, 2014 or 2013.
Details of cash paid for current and prior years' acquisitions are listed below.
 
Years ended December 31,
 
2015
 
2014
 
2013
Cost of investment: current-year acquisitions
$
37.8

 
$
97.3

 
$
67.7

Cost of investment: prior-year acquisitions
53.1

 
14.0

 
28.5

Less: net cash acquired
(9.2
)
 
(29.9
)
 
(7.1
)
Total cost of investment
81.7

 
81.4

 
89.1

Operating expense 1
18.4

 
3.4

 
2.0

 
 
 
 
 
 
Total cash paid for acquisitions 2
$
100.1

 
$
84.8

 
$
91.1

 
1
Represents cash payments made that were either in excess of the initial value of contingent payments or contingent upon the future employment of the former owners of the acquired companies and are recorded in the operating section of the Consolidated Statements of Cash Flows.
2
Of the total cash paid for acquisitions, $53.1, $13.6 and $27.6 for the years ended December 31, 2015, 2014 and 2013, respectively, are classified under the financing section of the Consolidated Statements of Cash Flows as acquisition-related payments. These amounts relate to deferred payments and increases in our ownership interest for prior acquisitions. $28.6, $67.8 and $61.5 for the years ended December 31, 2015, 2014 and 2013, respectively, are classified under the investing section of the Consolidated Statements of Cash Flows as acquisitions, net of cash acquired. These amounts relate to initial payments for new transactions.

Note 5:  Supplementary Data
Valuation and Qualifying Accounts – Allowance for Uncollectible Accounts Receivable
 
Years ended December 31,
 
2015
 
2014
 
2013
Balance at beginning of period
$
59.5

 
$
64.9

 
$
59.0

Charges to costs and expenses
11.4

 
7.4

 
12.6

(Reversals) charges to other accounts 1
(0.4
)
 
0.1

 
0.7

Deductions:
 
 
 
 
 
Dispositions
(2.4
)
 
0.0

 
0.0

Uncollectible accounts written off
(9.8
)
 
(8.1
)
 
(7.2
)
Foreign currency translation adjustment
(4.1
)
 
(4.8
)
 
(0.2
)
Balance at end of period
$
54.2

 
$
59.5

 
$
64.9

 
1
Amounts primarily represent miscellaneous reclassifications and allowances of acquired companies.


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