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SEC Filings

10-Q
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 10-Q on 10/26/2017
Entire Document
 

Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)


Our accrued liabilities are also affected by the timing of certain other payments. For example, while annual cash incentive awards are accrued throughout the year, they are generally paid during the first quarter of the subsequent year.
Investing Activities
Net cash used in investing activities during the first nine months of 2017 primarily consisted of payments for capital expenditures of $108.7, related mostly to leasehold improvements and computer hardware and software.
Financing Activities
Net cash used in financing activities during the first nine months of 2017 was primarily driven by the repurchase of 9.4 shares of our common stock for an aggregate cost of $216.0, including fees, and the payment of dividends of $211.2, partially offset by a net increase in short-term borrowings of $429.9.
Foreign Exchange Rate Changes
The effect of foreign exchange rate changes on cash, cash equivalents and restricted cash included in the unaudited Consolidated Statements of Cash Flows resulted in a net increase of $0.4 during the first nine months of 2017.
Balance Sheet Data
September 30,
2017
 
December 31,
2016
 
September 30,
2016
Cash, cash equivalents and marketable securities
$
705.0

 
$
1,100.6

 
$
894.6

 
 
 
 
 
 
Short-term borrowings
$
511.8

 
$
85.7

 
$
107.8

Current portion of long-term debt
301.9

 
323.9

 
24.5

Long-term debt
1,285.0

 
1,280.7

 
1,583.3

Total debt
$
2,098.7

 
$
1,690.3

 
$
1,715.6

LIQUIDITY OUTLOOK
We expect our cash flow from operations and existing cash and cash equivalents to be sufficient to meet our anticipated operating requirements at a minimum for the next twelve months. We also have a committed corporate credit facility, uncommitted lines of credit and a commercial paper program available to support our operating needs. We continue to maintain a disciplined approach to managing liquidity, with flexibility over significant uses of cash, including our capital expenditures, cash used for new acquisitions, our common stock repurchase program and our common stock dividends.
From time to time, we evaluate market conditions and financing alternatives for opportunities to raise additional funds or otherwise improve our liquidity profile, enhance our financial flexibility and manage market risk. Our ability to access the capital markets depends on a number of factors, which include those specific to us, such as our credit ratings, and those related to the financial markets, such as the amount or terms of available credit. There can be no guarantee that we would be able to access new sources of liquidity, or continue to access existing sources of liquidity, on commercially reasonable terms, or at all.
Funding Requirements
Our most significant funding requirements include our operations, non-cancelable operating lease obligations, capital expenditures, acquisitions, common stock dividends, taxes and debt service. Additionally, we may be required to make payments to minority shareholders in certain subsidiaries if they exercise their options to sell us their equity interests.
Notable funding requirements include:
Debt service – As of September 30, 2017, we had outstanding short-term borrowings of $511.8 from our commercial paper program and uncommitted lines of credit used primarily to fund seasonal working capital needs. Our 2.25% Senior Notes in aggregate principal amount of $300.0 mature on November 15, 2017, and we expect to use proceeds from the issuance of commercial paper to repay the outstanding 2.25% Senior Notes upon maturity. The remainder of our debt is primarily long-term, with maturities scheduled through 2024.

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