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SEC Filings

10-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 10-K on 02/21/2017
Entire Document
 

Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)



Notable funding requirements include:
Debt service - Our 2.25% Senior Notes in aggregate principal amount of $300.0 mature on November 15, 2017, and a $22.6 note classified within our Other notes payable is due on June 30, 2017. We expect to use available cash to fund the retirement of the outstanding notes upon maturity. The remainder of our debt is primarily long-term, with maturities scheduled through 2024. See the table below for the maturity schedule of our long-term debt.
Acquisitions – We paid cash of $52.1, net of cash acquired of $13.6, for acquisitions completed in 2016. We also paid $0.5 in up-front payments and $59.3 in deferred payments for prior-year acquisitions as well as ownership increases in our consolidated subsidiaries. In addition to potential cash expenditures for new acquisitions, we expect to pay approximately $77.0 in 2017 related to prior-year acquisitions. We may also be required to pay approximately $31.0 in 2017 related to put options held by minority shareholders if exercised. We will continue to evaluate strategic opportunities to grow and continue to strengthen our market position, particularly in our digital and marketing services offerings, and to expand our presence in high-growth and key strategic world markets.
Dividends – During 2016, we paid four quarterly cash dividends of $0.15 per share on our common stock, which corresponded to aggregate dividend payments of $238.4. On February 10, 2017, we announced that our Board of Directors (the "Board") had declared a common stock cash dividend of $0.18 per share, payable on March 15, 2017 to holders of record as of the close of business on March 1, 2017. Assuming we pay a quarterly dividend of $0.18 per share and there is no significant change in the number of outstanding shares as of December 31, 2016, we would expect to pay approximately $280.0 over the next twelve months.
The following summarizes our estimated contractual cash obligations and commitments as of December 31, 2016 and their effect on our liquidity and cash flow in future periods.
 
Years ended December 31,
 
Thereafter
 
Total
 
2017
 
2018
 
2019
 
2020
 
2021
 
Long-term debt 1
$
323.9

 
$
1.8

 
$
1.7

 
$
0.8

 
$
0.0

 
$
1,276.4

 
$
1,604.6

Interest payments on long-term debt 1
57.3

 
51.3

 
51.3

 
51.0

 
49.8

 
66.2

 
326.9

Non-cancelable operating lease obligations 2
329.4

 
305.5

 
279.8

 
254.8

 
226.4

 
796.2

 
2,192.1

Contingent acquisition payments 3
111.6

 
108.1

 
58.0

 
12.8

 
30.0

 
15.6

 
336.1

Uncertain tax positions 4
24.0

 
123.2

 
66.4

 
18.2

 
5.1

 
9.8

 
246.7

Total
$
846.2

 
$
589.9

 
$
457.2

 
$
337.6

 
$
311.3

 
$
2,164.2

 
$
4,706.4

 
1
Amounts represent maturity at book value and interest payments based on contractual obligations. We may redeem all or some of the 2.25% Senior Notes due 2017, the 4.00% Senior Notes due 2022, the 3.75% Senior Notes due 2023 and the 4.20% Senior Notes due 2024 at the greater of the principal amount of the notes to be redeemed or a "make-whole" amount, plus, in each case, accrued and unpaid interest to the date of redemption.
2
Non-cancelable operating lease obligations are presented net of future receipts on contractual sublease arrangements.
3
We have structured certain acquisitions with additional contingent purchase price obligations based on factors including future performance of the acquired entity. See Note 4 and Note 13 to the Consolidated Financial Statements for further information.
4
The amounts presented are estimates due to inherent uncertainty of tax settlements, including the ability to offset liabilities with tax loss carryforwards.

Share Repurchase Program
In February 2016, the Board authorized a share repurchase program to repurchase from time to time up to $300.0, excluding fees, of our common stock (the "2016 Share Repurchase Program"), which was in addition to the remaining amount available to be repurchased from the $300.0 authorization made by the Board in February 2015 (the "2015 Share Repurchase Program"). We fully utilized the 2015 Share Repurchase Program during the third quarter of 2016. As of December 31, 2016, $155.4 remained available for repurchase under the 2016 Share Repurchase Program.
On February 10, 2017, we announced that our Board had approved a new share repurchase program to repurchase from time to time up to $300.0, excluding fees, of our common stock (the "2017 Share Repurchase Program"). The new authorization is in addition to any amounts remaining for repurchase under the 2016 Share Repurchase Program. There is no expiration date associated with the share repurchase programs.
We may effect such repurchases through open market purchases, trading plans established in accordance with SEC rules, derivative transactions or other means. We expect to continue to repurchase our common stock in future periods, although the timing and amount of the repurchases will depend on market conditions and other funding requirements.


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