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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)

Asset Allocation
The primary investment goal for our plans’ assets is to maximize total asset returns while ensuring the plans’ assets are available to fund the plans’ liabilities as they become due. The plans’ assets in aggregate and at the individual portfolio level are invested so that total portfolio risk exposure and risk-adjusted returns best achieve this objective. The aggregate amount of our own stock held as investment for our domestic and foreign pension funds is considered negligible relative to the total fund assets. As of December 31, 2015, the weighted-average target and actual asset allocations relating to our domestic and foreign pension plans' assets are listed below.
 
 
 
 
December 31,
Asset Class
 
2016 Target Allocation
 
2015
 
2014
Equity securities
 
23
%
 
22
%
 
22
%
Fixed income securities
 
41
%
 
38
%
 
46
%
Real estate
 
8
%
 
7
%
 
5
%
Other
 
28
%
 
33
%
 
27
%
Total
 
100
%
 
100
%
 
100
%

Cash Flows
During 2015, we contributed $3.2 and $21.6 of cash to our domestic and foreign pension plans, respectively. For 2016, we expect to contribute approximately $21.0 of cash to our foreign pension plans. We expect to make no contributions to our Domestic Pension Plan in 2016.
The following estimated future benefit payments, which reflect future service, as appropriate, are expected to be paid in the years indicated below.
Years
Domestic
Pension Plan
 
Foreign
Pension Plans
 
Domestic Postretirement
Benefit Plan
2016
$
13.1

 
$
21.1

 
$
3.9

2017
12.9

 
23.1

 
3.8

2018
8.6

 
24.0

 
3.7

2019
8.4

 
24.6

 
3.5

2020
8.2

 
22.2

 
3.3

2021 - 2025
38.7

 
126.5

 
13.6

The estimated future payments for our domestic postretirement benefit plan are before any estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003.
The following federal subsidies are expected to be received in the years indicated below.
Years
 
Domestic Postretirement
Benefit Plan
2016
 
$
0.4

2017
 
0.4

2018
 
0.4

2019
 
0.4

2020
 
0.4

2021 - 2025
 
1.9


Savings Plans
We sponsor defined contribution plans (the “Savings Plans”) that cover substantially all domestic employees. The Savings Plans permit participants to make contributions on a pre-tax and/or after-tax basis and allow participants to choose among various investment alternatives. We match a portion of participant contributions based upon their years of service. Amounts expensed for the Savings Plans for 2015, 2014 and 2013 were $44.5, $43.0 and $37.7, respectively. Expenses include a discretionary Company contribution of $5.8, $5.2 and $4.9 offset by participant forfeitures of $3.8, $3.6 and $3.3 in 2015, 2014 and 2013, respectively.

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