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SEC Filings

10-Q
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 10-Q on 07/27/2017
Entire Document
 
Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)


Other (Expense) Income, Net
Results of operations for the three and six months ended June 30, 2017 and 2016 include certain items that are not directly associated with our revenue-producing operations.
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2017
 
2016
 
2017
 
2016
Net losses on sales of businesses and investments
$
(13.1
)
 
$
(2.2
)
 
$
(12.1
)
 
$
(18.5
)
Other (expense) income, net
(2.3
)
 
2.6

 
(2.5
)
 
(0.3
)
Total other (expense) income, net
$
(15.4
)
 
$
0.4

 
$
(14.6
)
 
$
(18.8
)
Net Losses on Sales of Businesses and Investments – During the three and six months ended June 30, 2017 and 2016, the amounts recognized were related to sales of businesses and the classification of certain assets and liabilities, consisting primarily of accounts receivable and accounts payable, respectively, as held for sale within our IAN operating segment.

Share Repurchase Program
In February 2017, our Board of Directors (the "Board") authorized a new share repurchase program to repurchase from time to time up to $300.0, excluding fees, of our common stock, which was in addition to the remaining amount available to be repurchased from the $300.0 authorization made by the Board in February 2016.
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.
The following table presents our share repurchase activity under our share repurchase programs for the six months ended June 30, 2017 and 2016.
 
Six months ended
June 30,
 
2017
 
2016
Number of shares repurchased
4.8

 
5.0

Aggregate cost, including fees
$
115.0

 
$
112.5

Average price per share, including fees
$
24.13

 
$
22.47

As of June 30, 2017, $340.4, excluding fees, remains available for repurchase under the share repurchase programs. The share repurchase programs have no expiration date.

Note 6:  Income Taxes
For the three and six months ended June 30, 2017, our effective income tax rates of 44.3% and 39.6%, respectively, were negatively impacted by losses in certain foreign jurisdictions where we receive no tax benefit due to 100% valuation allowances and by losses on sales of businesses, and the classification of certain assets as held for sale, for which we did not receive a full tax benefit. For the six months ended June 30, 2017, our effective income tax rate was positively impacted by excess tax benefits on employee share-based payments, the majority of which is typically recognized in the first quarter due to the timing of the vesting of awards.
We have various tax years under examination by tax authorities in various countries, and in various states, such as New York, in which we have significant business operations. It is not yet known whether these examinations will, in the aggregate, result in our paying additional taxes. We believe our tax reserves are adequate in relation to the potential for additional assessments in each of the jurisdictions in which we are subject to taxation. We regularly assess the likelihood of additional tax assessments in those jurisdictions and, if necessary, adjust our reserves as additional information or events require.
With respect to all tax years open to examination by U.S. federal, various state and local, and non-U.S. tax authorities, we currently anticipate that total unrecognized tax benefits will decrease by an amount between $25.0 and $35.0 in the next twelve months, a portion of which will affect our effective income tax rate, primarily as a result of the settlement of tax examinations and the lapsing of statutes of limitations.

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