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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)

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, 2015 and 2014.
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
Stock-Settled Awards:
 
 
 
 
 
 
Awards granted
 
0.8

 
1.2

 
1.1

Weighted-average grant-date fair value (per award)
 
$
22.07

 
$
17.77

 
$
13.51

Total fair value of vested awards distributed
 
$
18.8

 
$
12.6

 
$
35.4

Cash-Settled Awards:
 
 
 
 
 
 
Awards granted
 
0.1

 
0.1

 
0.1

Weighted-average grant-date fair value (per award)
 
$
20.46

 
$
18.20

 
$
16.35

Total fair value of vested awards distributed
 
$
0.2

 
$
0.6

 
$
5.4

Performance-Based Awards:
 
 
 
 
 
 
Awards granted
 
2.9

 
3.5

 
1.5

Weighted-average grant-date fair value (per award)
 
$
20.88

 
$
16.56

 
$
11.97

Total fair value of vested awards distributed
 
$
18.7

 
$
15.3

 
$
0.2

In conjunction with common stock dividends declared in 2015 and 2014, we accrued dividends of $0.9 and $0.8, respectively, on non-vested stock-settled awards and paid dividends of $0.6 and $0.5 for stock-settled awards that vested during 2015 and 2014, respectively.
A summary of the activity of our non-vested stock-settled awards, cash-settled awards and performance-based awards during 2015 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, 2015
 
2.2

 
$
15.47

 
0.1

 
$
16.99

 
5.8

 
$
14.39

Granted
 
0.8

 
22.07

 
0.1

 
20.46

 
2.9

 
20.88

Vested
 
(0.9
)
 
14.10

 
(0.1
)
 
11.99

 
(0.8
)
 
11.09

Forfeited
 
(0.1
)
 
17.92

 
0.0

 
0.00

 
(0.8
)
 
13.36

Non-vested as of December 31, 2015
 
2.0

 
$
18.53

 
0.1

 
$
18.75

 
7.1

 
$
17.50

Total unrecognized compensation expense remaining
 
$
16.2

 
 
 
$
1.8

 
 
 
$
87.1

 
 
Weighted-average years expected to be recognized over
 
1.3

 
 
 
1.7

 
 
 
1.8

 
 
During 2015, 2014 and 2013, additional performance cash awards with a total target value of $1.2, $2.9 and $35.6, 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, 2015 and 2014 was $16.6 and $19.8, respectively. As of December 31, 2015, there was $1.6 of total unrecognized compensation expense related to these awards, which is expected to be recognized over a remaining weighted-average period of 0.2 years.
In conjunction with our annual grant of long-term incentive compensation awards, we reviewed our estimates and assumptions in 2015, which resulted in a forfeiture rate consistent with prior years.


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