IPG
    Print Page  Close Window

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)


Amounts reclassified from accumulated other comprehensive loss, net of tax, for the three and six months ended June 30, 2017 and 2016 are as follows:
 
Three months ended
June 30,
 
Six months ended
June 30,
 
Affected Line Item in the Consolidated Statements of Operations
 
2017
 
2016
 
2017
 
2016
 
Foreign currency translation adjustments 1
$
0.7

 
$
7.5

 
$
0.3

 
$
6.5

 
Other (expense) income, net
Gains on available-for-sale securities
0.0

 
(1.2
)
 
0.0

 
(1.2
)
 
Other (expense) income, net
Losses on derivative instruments
0.6

 
0.5

 
1.1

 
1.0

 
Interest expense
Amortization of defined benefit pension and postretirement plan items
1.8

 
0.0

 
3.5

 
2.7

 
Other (expense) income, net
Tax effect
(0.6
)
 
0.1

 
(1.2
)
 
(1.0
)
 
Provision for income taxes
Total amount reclassified from accumulated other comprehensive loss, net of tax
$
2.5

 
$
6.9

 
$
3.7

 
$
8.0

 
 
 
1
These foreign currency translation adjustments are primarily a result of the sales of businesses.
 
Note 9:  Employee Benefits
We have a defined benefit pension plan that covers certain U.S. employees (the “Domestic Pension Plan”). We also have numerous funded and unfunded plans outside the U.S. The Interpublic Limited Pension Plan in the U.K. is a defined benefit plan and is our most material foreign pension plan in terms of the benefit obligation and plan assets. Some of our domestic and foreign subsidiaries provide postretirement health benefits and life insurance to eligible employees and, in certain cases, their dependents. The domestic postretirement benefit plan is our most material postretirement benefit plan in terms of the benefit obligation. Certain immaterial foreign pension and postretirement benefit plans have been excluded from the table below.
The components of net periodic cost for the Domestic Pension Plan, the significant foreign pension plans and the domestic postretirement benefit plan are listed below.
 
Domestic Pension Plan
 
Foreign Pension Plans
 
Domestic Postretirement Benefit Plan
Three months ended June 30,
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Service cost
$
0.0

 
$
0.0

 
$
1.0

 
$
2.2

 
$
0.0

 
$
0.0

Interest cost
1.2

 
1.5

 
3.3

 
4.7

 
0.3

 
0.3

Expected return on plan assets
(1.5
)
 
(1.7
)
 
(4.4
)
 
(5.3
)
 
0.0

 
0.0

Settlements and curtailments
0.0

 
0.0

 
0.0

 
0.2

 
0.0

 
0.0

Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
0.0

 
0.0

 
0.0

 
0.0

 
0.0

 
0.1

Unrecognized actuarial losses
0.4

 
(1.2
)
 
1.4

 
0.9

 
0.0

 
0.0

Net periodic cost
$
0.1

 
$
(1.4
)
 
$
1.3

 
$
2.7

 
$
0.3

 
$
0.4



13