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SEC Filings

10-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 10-K on 02/21/2017
Entire Document
 
Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)

Note 8:  Accumulated Other Comprehensive Loss, Net of Tax
The following table presents the changes in accumulated other comprehensive loss, net of tax, by component.
 
Foreign Currency Translation Adjustments
 
Available-for-Sale Securities
 
Derivative Instruments
 
Defined Benefit Pension and Other Postretirement Plans
 
Total
Balance as of December 31, 2014
$
(436.3
)
 
$
0.8

 
$
(10.9
)
 
$
(190.3
)
 
$
(636.7
)
Other comprehensive (loss) income before reclassifications
(252.6
)
 
0.5

 
0.0

 
11.7

 
(240.4
)
Amount reclassified from accumulated other comprehensive loss, net of tax
23.3

 
0.0

 
1.3

 
6.9

 
31.5

Balance as of December 31, 2015
$
(665.6
)
 
$
1.3

 
$
(9.6
)
 
$
(171.7
)
 
$
(845.6
)
Other comprehensive (loss) income before reclassifications
(54.8
)
 
0.5

 
0.0

 
(70.7
)
 
(125.0
)
Amount reclassified from accumulated other comprehensive loss, net of tax
3.7

 
(1.2
)
 
1.2

 
4.4

 
8.1

Balance as of December 31, 2016
$
(716.7
)
 
$
0.6

 
$
(8.4
)
 
$
(238.0
)
 
$
(962.5
)

Amounts reclassified from accumulated other comprehensive loss, net of tax, for the years ended December 31, 2016, 2015 and 2014 are as follows:
 
 
Years ended December 31,
 
Affected Line Item in the Consolidated Statements of Operations
 
 
2016
 
2015
 
2014
 
Foreign currency translation adjustments 1
 
$
3.7

 
$
23.3

 
$
(0.9
)
 
Other expense, net
Gains on available-for-sale securities
 
(1.3
)
 
0.0

 
0.0

 
Other expense, net
Losses on derivative instruments
 
2.0

 
2.0

 
1.9

 
Interest expense
Amortization of defined benefit pension and postretirement plans items 2
 
5.8

 
10.4

 
10.5

 
 
Tax effect
 
(2.1
)
 
(4.2
)
 
(4.3
)
 
Provision for income taxes
Total amount reclassified from accumulated other comprehensive loss, net of tax
 
$
8.1

 
$
31.5

 
$
7.2

 
 
 
1
These foreign currency translation adjustments are primarily a result of the sales of businesses.
2
These accumulated other comprehensive loss components are included in the computation of net periodic cost. See Note 11 for further information.

Note 9:  Incentive Compensation Plans
2014 Performance Incentive Plan
We issue stock-based compensation and cash awards to our employees under a plan established by the Compensation and Leadership Talent Committee of the Board of Directors (the “Compensation Committee”) and approved by our shareholders. In May 2014, our shareholders approved the 2014 Performance Incentive Plan (the “2014 PIP”), replacing the 2009 Performance Incentive Plan (the “2009 PIP”) and previous incentive plans. The number of shares of common stock initially available for grants of all equity awards under the 2014 PIP is 28.8. Pursuant to the terms of the 2014 PIP, the number of shares that may be awarded to any one participant for each type of award is limited to 2.0. The vesting period of awards granted is generally commensurate with the requisite service period. We generally issue new shares to satisfy the exercise of stock options or the distribution of other stock-based awards.
Additionally, under the 2014 PIP, we have the ability to issue performance cash awards. Performance cash awards are granted to certain employees who otherwise would have been eligible to receive performance-based stock awards. These awards have a service period vesting condition and a performance vesting condition. The amount of the performance cash award received by an employee with a performance vesting condition can range from 0% to 300% of the target amount of the original grant value, except for Executive Officers of IPG, with a range of 0% to 200%. Performance cash awards generally vest in three years. The Compensation Committee may grant performance cash awards to any eligible employee; however, no employee can receive more than $10.0 during a performance period.

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