|INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 10-Q on 07/27/2017|
Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
The results of operations of our acquired companies were included in our consolidated results from the closing date of each acquisition. Details of cash paid for current and prior years' acquisitions are listed below.
Six months ended
Cost of investment: current-year acquisitions
Cost of investment: prior-year acquisitions
Less: net cash acquired
Total cost of investment
Operating payments 1
Total cash paid for acquisitions 2
Represents cash payments for amounts that have been recognized in operating expenses since the date of acquisition either relating to adjustments to estimates in excess of the initial value of contingent payments recorded or were contingent upon the future employment of the former owners of the acquired companies. Amounts are reflected in the operating section of the unaudited Consolidated Statements of Cash Flows.
Of the total cash paid for acquisitions, $12.6 and $34.3 for the six months ended June 30, 2017 and 2016, respectively, are classified under the investing section of the unaudited Consolidated Statements of Cash Flows, as acquisitions, net of cash acquired. These amounts relate to initial payments for new transactions. Of the total cash paid for acquisitions, $36.3 and $29.2 for the six months ended June 30, 2017 and 2016, respectively, are classified under the financing section of the unaudited Consolidated Statements of Cash Flows as acquisition-related payments. These amounts relate to deferred payments and increases in our ownership interest for prior acquisitions.
Many of our acquisitions include provisions under which the noncontrolling equity owners may require us to purchase additional interests in a subsidiary at their discretion. Redeemable noncontrolling interests are adjusted quarterly to their estimated redemption value, but not less than their initial fair value. Any adjustments to the redemption value impact retained earnings, except for foreign currency translation adjustments.
The following table presents changes in our redeemable noncontrolling interests.
Six months ended
Balance at beginning of period
Change in related noncontrolling interests balance
Changes in redemption value of redeemable noncontrolling interests:
Redemptions and other
Redemption value adjustments
Balance at end of period
Note 5: Supplementary Data
The following table presents the components of accrued liabilities.
Salaries, benefits and related expenses
Office and related expenses
Total accrued liabilities