IPG
    Print Page  Close Window

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)

Note 6:  Intangible Assets
Goodwill
Goodwill is the excess purchase price remaining from an acquisition after an allocation of purchase price has been made to identifiable assets acquired and liabilities assumed based on estimated fair values. The changes in the carrying value of goodwill for our segments, IAN and CMG, for the years ended December 31, 2015 and 2014 are listed below.
 
 
IAN
 
CMG
 
Total 1
Balance as of December 31, 2013
 
$
3,097.0

 
$
532.0

 
$
3,629.0

Current-year acquisitions
 
95.2

 
40.9

 
136.1

Foreign currency and other
 
(83.7
)
 
(12.2
)
 
(95.9
)
Balance as of December 31, 2014
 
$
3,108.5

 
$
560.7

 
$
3,669.2

Current-year acquisitions
 
37.8

 
13.2

 
51.0

Foreign currency and other
 
(94.9
)
 
(16.8
)
 
(111.7
)
Balance as of December 31, 2015
 
$
3,051.4

 
$
557.1

 
$
3,608.5

 
1
For all periods presented, we have not recorded a goodwill impairment charge.
See Note 1 for information regarding our annual impairment methodology.

Other Intangible Assets
Other intangible assets are comprised of both assets with indefinite lives not subject to amortization and assets with definite lives subject to amortization. Other intangible assets primarily consist of customer lists and trade names, which have definitive lives and are subject to amortization on a straight-line basis with estimated useful lives generally between 7 and 15 years. Amortization expense for other intangible assets for the years ended December 31, 2015, 2014 and 2013 was $26.1, $29.4 and $26.8, respectively. There were no material impairment charges on other intangibles for the years ended December 31, 2015, 2014 and 2013. During 2015 and 2014, we recorded approximately $9.6 and $48.6 of intangible assets related to our acquisitions in the respective year.
The following table provides a summary of other intangible assets, which are included in other assets on our Consolidated Balance Sheets.
 
 
December 31,
 
 
2015
 
2014
 
 
Gross Amount
 
Accumulated
Amortization
 
Net Amount
 
Gross Amount
 
Accumulated
Amortization
 
Net Amount
Customer lists
 
$
249.0

 
$
(150.0
)
 
$
99.0

 
$
255.8

 
$
(139.3
)
 
$
116.5

Trade names
 
65.0

 
(25.7
)
 
39.3

 
71.0

 
(22.8
)
 
48.2

Other
 
13.7

 
(3.7
)
 
10.0

 
14.1

 
(3.8
)
 
10.3

Total
 
$
327.7

 
$
(179.4
)
 
$
148.3

 
$
340.9

 
$
(165.9
)
 
$
175.0


The estimated annual amortization expense for other intangible assets for the next five years as of December 31, 2015 is listed below.
 
 
2016
 
2017
 
2018
 
2019
 
2020
Estimated amortization expense
 
$
23.2

 
$
21.7

 
$
20.1

 
$
17.1

 
$
16.0


Note 7:  Income Taxes
The components of income before income taxes are listed below.
 
Years ended December 31,
 
2015
 
2014
 
2013
Domestic
$
461.0

 
$
387.7

 
$
255.3

Foreign
301.2

 
333.0

 
212.7

Total
$
762.2

 
$
720.7

 
$
468.0


57