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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)

Stock-based compensation awards expected to be settled in cash have been classified as liabilities in our Consolidated Balance Sheets as of December 31, 2016 and 2015.
 
 
Years ended December 31,
 
 
2016
 
2015
 
2014
Stock-Settled Awards:
 
 
 
 
 
 
Awards granted
 
1.1

 
0.8

 
1.2

Weighted-average grant-date fair value (per award)
 
$
21.87

 
$
22.07

 
$
17.77

Total fair value of vested awards distributed
 
$
17.5

 
$
18.8

 
$
12.6

Cash-Settled Awards:
 
 
 
 
 
 
Awards granted
 
0.1

 
0.1

 
0.1

Weighted-average grant-date fair value (per award)
 
$
22.54

 
$
20.46

 
$
18.20

Total fair value of vested awards distributed
 
$
0.7

 
$
0.2

 
$
0.6

Performance-Based Awards:
 
 
 
 
 
 
Awards granted
 
3.3

 
2.9

 
3.5

Weighted-average grant-date fair value (per award)
 
$
19.58

 
$
20.88

 
$
16.56

Total fair value of vested awards distributed
 
$
27.9

 
$
18.7

 
$
15.3

In conjunction with common stock dividends declared in 2016 and 2015, we accrued dividends of $1.3 and $0.9, respectively, on non-vested stock-settled awards and paid dividends of $0.6 for stock-settled awards that vested during both 2016 and 2015.
A summary of the activity of our non-vested stock-settled awards, cash-settled awards and performance-based awards during 2016 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, 2016
 
2.0

 
$
18.53

 
0.1

 
$
18.75

 
7.1

 
$
17.50

Granted
 
1.1

 
21.87

 
0.0

 
22.54

 
3.3

 
19.58

Vested
 
(0.8
)
 
16.64

 
0.0

 
17.04

 
(1.3
)
 
11.92

Forfeited
 
0.0

 
19.80

 
0.0

 
19.83

 
(0.6
)
 
17.46

Non-vested as of December 31, 2016
 
2.3

 
$
20.84

 
0.1

 
$
20.49

 
8.5

 
$
19.16

Total unrecognized compensation expense remaining
 
$
23.7

 
 
 
$
1.7

 
 
 
$
90.0

 
 
Weighted-average years expected to be recognized over
 
1.2

 
 
 
1.3

 
 
 
1.7

 
 
Under the 2014 PIP and 2009 PIP, additional performance cash awards settled in shares were granted, all of which have been fully settled as of February 28, 2016. The total amount of the vested awards distributed during the years ended December 31, 2016 and 2015 were $28.0 and $16.6, respectively. As of December 31, 2016, there are no remaining awards of this type outstanding.
In conjunction with our annual grant of long-term incentive compensation awards, we reviewed our estimates and assumptions in 2016, which resulted in a forfeiture rate consistent with prior years.

2009 Restricted Cash Plan
In March 2009, the Compensation Committee approved the Interpublic Restricted Cash Plan (the “Cash Plan”). Under the Cash Plan, the Board, the Compensation Committee or the Plan Administrator may grant cash awards to certain employees eligible to receive stock-settled and cash-settled awards. Cash awards, when granted, have a service period vesting condition and generally vest in three years.

Cash Awards
During the years ended December 31, 2016, 2015 and 2014, the Compensation Committee granted cash awards under the Cash Plan with a total target value of $5.2, $1.3 and $5.8, respectively. For those same years, we recognized $3.1, $3.0 and $3.1, respectively, in salaries and related expenses in our Consolidated Statements of Operations.

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