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)

Expected Return on Assets – Our expected rate of return is determined at the beginning of each year and considers asset class index returns over various market and economic conditions, current and expected market conditions, risk premiums associated with asset classes and long-term inflation rates. We determine both a short-term and long-term view and then select a long-term rate of return assumption that matches the duration of our liabilities.

Fair Value of Pension Plan Assets
The following table presents the fair value of our domestic and foreign pension plan assets as of December 31, 2015 and 2014, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. See Note 11 for a description of the fair value hierarchy.
 
December 31, 2015
 
December 31, 2014
Asset Class
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Investment funds
$
16.8

 
$
335.8

 
$
57.9

 
$
410.5

 
$
18.8

 
$
372.6

 
$
40.1

 
$
431.5

Limited partnerships
0.0

 
0.0

 
31.0

 
31.0

 
0.0

 
0.0

 
32.1

 
32.1

Fixed income securities
22.1

 
0.4

 
0.0

 
22.5

 
17.6

 
1.4

 
0.0

 
19.0

Insurance contracts
0.0

 
13.7

 
0.0

 
13.7

 
0.0

 
19.3

 
0.0

 
19.3

Other
23.0

 
0.0

 
0.0

 
23.0

 
24.8

 
0.0

 
0.3

 
25.1

Total
$
61.9

 
$
349.9

 
$
88.9

 
$
500.7

 
$
61.2

 
$
393.3

 
$
72.5

 
$
527.0

Investment funds include mutual funds, common/collective trusts, hedge funds and other commingled assets that are invested primarily in equity and fixed income securities. Mutual funds, which are publicly traded, are primarily valued using recently reported sales prices. All other investment funds, which are not publicly traded, are valued based on the net asset value of shares held by the plan at year end, which reflects the fair value of the underlying investments. Limited partnerships are invested primarily in equity and fixed income securities. Fixed income securities include government and investment-grade corporate bonds. Insurance contracts are valued based on the cash surrender value of the contract. Other investments primarily include cash and cash equivalents, equity securities and derivatives.
The following table presents additional information about our domestic and foreign pension plan assets for which we utilize Level 3 inputs to determine fair value.
 
Year ended December 31, 2015
 
Year ended December 31, 2014
  
Investment Funds
 
Limited Partnerships
 
Other
 
Total
 
Investment Funds
 
Limited Partnerships
 
Other
 
Total
Balance at beginning of period
$
40.1

 
$
32.1

 
$
0.3

 
$
72.5

 
$
25.4

 
$
36.1

 
$
0.6

 
$
62.1

Actual return on assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets sold during the year
0.0

 
0.0

 
0.0

 
0.0

 
0.2

 
0.2

 
0.0

 
0.4

Assets still held at year end
(0.7
)
 
(1.1
)
 
0.0

 
(1.8
)
 
(0.7
)
 
(0.3
)
 
(0.3
)
 
(1.3
)
Net purchases, sales and settlements
18.5

 
0.0

 
0.1

 
18.6

 
15.2

 
(3.9
)
 
0.0

 
11.3

Transfers in/out of Level 3
0.0

 
0.0

 
(0.4
)
 
(0.4
)
 
0.0


0.0

 
0.0


0.0

Balance at end of period
$
57.9

 
$
31.0

 
$
0.0

 
$
88.9

 
$
40.1

 
$
32.1

 
$
0.3

 
$
72.5



70