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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                -----------------

                                    FORM 10-Q

                                ----------------


           |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 2000

                                       OR

           |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                                ----------------


                         Commission File Number: 1-6686


                    THE INTERPUBLIC GROUP OF COMPANIES, INC.
             (Exact name of Registrant as specified in its charter)

      Delaware                                              13-1024020
- -------------------------------                        -------------------
(State or other jurisdiction of                         (I.R.S. Employer
incorporation or organization)                         Identification No.)

1271 Avenue of the Americas, New York, New York               10020
- -----------------------------------------------        -------------------
(Address of principal executive offices)                     (Zip Code)

Registrant's telephone number, including area code (212) 399-8000
                                                  ----------------

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports)  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No |_|

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest  practicable  date.  Common Stock  outstanding at
April 28, 2000: 301,704,485 shares.







          THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES

                                    I N D E X

                                                                           Page
                                                                           ----

PART I.   FINANCIAL INFORMATION

     Item 1.  Financial Statements

                  Consolidated Balance Sheet
                   March 31, 2000 (unaudited) and
                   December 31, 1999                                       3-4

                  Consolidated Income Statement
                   Three months ended March 31, 2000
                   and 1999 (unaudited)                                    5

                  Consolidated Statement of Comprehensive Income
                   Three months ended March 31, 2000
                   and 1999 (unaudited)                                    6

                  Consolidated Statement of Cash Flows
                   Three months ended March 31, 2000
                   and 1999 (unaudited)                                    7

                  Notes to Consolidated Financial Statements (unaudited)   8-10

     Item 2.  Management's Discussion and Analysis of
                  Financial Condition and Results of Operations            12-14


     Item 3.  Quantitative and Qualitative Disclosures
                  about Market Risk                                         15

PART II.  OTHER INFORMATION

     Item 2.   Changes in Securities

     Item 6.   Exhibits and Reports on Form 8-K

     SIGNATURES

     INDEX TO EXHIBITS


















PART I - FINANCIAL INFORMATION

Item 1

          THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                             (Dollars in Thousands)
                                     ASSETS

                                                 March 31,    December 31,
                                                   2000          1999
                                                (unaudited)
                                               ------------   ------------
CURRENT ASSETS:
  Cash and cash equivalents (includes
    certificates of deposit:  2000-$89,519;
                              1999-$150,343)    $  678,942      $  981,448
  Marketable securities, at cost which
    approximates market                             47,982          36,765
  Receivables (net of allowance for doubtful
    accounts: 2000-$58,916; 1999-$57,841)        4,243,159       4,309,589
  Expenditures billable to clients                 351,403         309,059
  Prepaid expenses and other current assets        145,098         130,983
                                                ----------      ----------
    Total current assets                         5,466,584       5,767,844
                                                ----------      ----------
OTHER ASSETS:
  Investment in unconsolidated affiliates           52,180          50,079
  Deferred taxes on income                           5,046              --
  Other investments and miscellaneous assets       647,170         717,521
                                                ----------       ---------
    Total other assets                             704,396         767,600
                                                ----------       ---------
FIXED ASSETS, at cost:
  Land and buildings                               139,224         143,079
  Furniture and equipment                          738,700         732,115
                                                ----------       ---------
                                                   877,924         875,194
  Less: accumulated depreciation                   492,618         480,648
                                                ----------       ---------
                                                   385,306         394,546
  Unamortized leasehold improvements               143,260         139,777
                                                ----------       ---------
  Total fixed assets                               528,566         534,323
                                                ----------       ---------
INTANGIBLE ASSETS (net of accumulated
  amortization): 2000-$600,373;
                 1999-$579,067                   1,700,599       1,657,488
                                                ----------      ----------
TOTAL ASSETS                                    $8,400,145      $8,727,255
                                                ==========      ==========













          THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                  (Dollars in Thousands Except Per Share Data)
                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                  March 31,    December 31,
                                                    2000           1999
                                                (unaudited)
                                                ------------   ------------
CURRENT LIABILITIES:
  Payable to banks                              $  381,810       $  261,951
  Accounts payable                               4,292,303        4,541,669
  Accrued expenses                                 618,581          675,596
  Accrued income taxes                             152,249          157,713
                                                ----------       ----------
    Total current liabilities                    5,444,943        5,636,929
                                                ----------       ----------
NONCURRENT LIABILITIES:
  Long-term debt                                   322,766          348,772
  Convertible subordinated
    debentures and notes                           522,068          518,490
  Deferred compensation and reserve
    for termination allowances                     351,804          343,606
  Deferred taxes on income                              --           41,429
  Accrued postretirement benefits                   48,730           48,730
  Other noncurrent liabilities                      85,739           82,585
  Minority interests in
    consolidated subsidiaries                       79,857           78,643
                                                ----------       ----------
    Total noncurrent liabilities                 1,410,964        1,462,255
                                                ----------       ----------
STOCKHOLDERS' EQUITY:
  Preferred Stock, no par value
    shares authorized: 20,000,000
    shares issued: none
  Common Stock, $.10 par value
    shares authorized: 550,000,000
    shares issued:
         2000 - 298,439,770
         1999 - 297,137,345                         29,844           29,714
  Additional paid-in capital                       772,327          738,953
  Retained earnings                              1,337,762        1,325,306
  Accumulated other comprehensive income,
    net of tax                                    (167,013)         (76,404)
                                                ----------       ----------
                                                 1,972,920        2,017,569
Less:  Treasury stock, at cost:
    2000 - 9,571,468 shares
    1999 - 9,479,772 shares                        338,222          312,463
Unamortized expense of restricted
    stock grants                                    90,460           77,035
                                                ----------       ----------
TOTAL STOCKHOLDERS' EQUITY                       1,544,238        1,628,071
                                                ----------       ----------
COMMITMENTS AND CONTINGENCIES

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $8,400,145       $8,727,255
                                                ==========       ==========
The  accompanying  notes are an integral  part of these  consolidated  financial
statements.




          THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES
                          CONSOLIDATED INCOME STATEMENT
                           THREE MONTHS ENDED MARCH 31
                  (Amounts in Thousands Except Per Share Data)
                                   (unaudited)

                                               2000             1999
                                               ----             ----
Revenue                                    $1,089,638         $908,081
                                           ----------         --------

Salaries and related expenses                 643,233          543,631
Office and general expenses                   339,259          282,000
Restructuring and other merger
  related costs                                36,051               --
                                             --------         --------
  Total operating expenses                  1,018,543          825,631
                                             --------         --------

Income from operations                         71,095           82,450

Interest expense                              (17,080)         (13,945)
Other income, net                              16,804           12,499
                                             --------         --------

Income before provision for income taxes       70,819           81,004

Provision for income taxes                     30,098           33,618
                                              -------          --------
Income of consolidated companies               40,721           47,386

Income applicable to minority interests        (5,433)          (3,599)
Equity in net income of unconsolidated
  affiliates                                    1,057              998
                                              -------          --------
Net income                                   $ 36,345         $ 44,785
                                             ========          ========

Earnings per share:
  Basic                                     $     .13         $    .16
  Diluted                                   $     .13         $    .16

Dividend per share - Interpublic            $     .085        $    .075

Weighted average shares:
  Basic                                       281,035          272,534
  Diluted                                     291,288          283,350


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.













          THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                           THREE MONTHS ENDED MARCH 31
                             (Dollars in Thousands)
                                   (unaudited)

                                                  2000           1999
                                                  ----           ----
Net Income                                      $  36,345      $  44,785
                                                ---------      ---------
Other Comprehensive Income, net of tax:

Foreign Currency Translation Adjustments          (30,420)       (60,467)

Net Unrealized Gains (Losses) on Securities       (60,189)        22,773
                                                ---------      ---------
Other Comprehensive Income                        (90,609)       (37,694)
                                                ---------      ---------
Comprehensive Income                            $ (54,264)      $  7,091
                                                =========      =========

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.









































          THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                           THREE MONTHS ENDED MARCH 31
                             (Dollars in Thousands)
                                   (unaudited)
                                                           2000          1999
                                                           ----          ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                              $ 36,345       $ 44,785
Adjustments to reconcile net income to cash
    used in operating activities:
  Depreciation and amortization of fixed assets           32,470         24,317
  Amortization of intangible assets                       21,306         14,728
  Amortization of restricted stock awards                  6,965          5,929
  Equity in net income of unconsolidated
   affiliates                                             (1,057)          (998)
  Income applicable to minority interests                  5,433          3,599
  Translation losses                                         593            974
  Net gain from sale of investments                       (5,596)          (481)
  Other                                                    8,424         (9,692)
  Restructuring charges, non-cash                         15,781             --
Changes in assets and liabilities, net of acquisitions:
  Receivables                                             32,030        (29,760)
  Expenditures billable to clients                       (43,183)       (51,014)
  Prepaid expenses and other assets                      (14,789)       (31,600)
  Accounts payable and other liabilities                (268,067)      (158,581)
  Accrued income taxes                                    (5,279)        (9,447)
  Deferred income taxes                                   (4,988)        (2,963)
  Deferred compensation and reserve for
    termination allowances                                11,857          3,936
                                                        -----------------------
Net cash used in operating activities                   (171,755)      (196,268)
                                                        -----------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Acquisitions, net                                      (56,931)       (55,286)
  Capital expenditures                                   (30,721)       (28,468)
  Proceeds from sale of investments                        7,700          1,436
  Net purchases of marketable securities                 (12,872)       (18,104)
  Other investments and miscellaneous assets             (49,644)        (5,359)
  Investments in unconsolidated affiliates                    --            236
                                                        -----------------------
Net cash used in investing activities                   (142,468)      (105,545)
                                                        -----------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase in short-term borrowings                       115,417       209,956
  Proceeds from long-term debt                              2,184        52,721
  Payments of long-term debt                              (16,802)       (1,534)
  Treasury stock acquired                                 (64,305)      (79,474)
  Issuance of common stock                                 16,186        26,285
  Cash dividends - Interpublic                            (23,890)      (20,450)
                                                         -----------------------
Net cash provided by financing activities                  28,790       187,504
Effect of exchange rates on cash and cash
  equivalents                                             (17,073)      (29,080)
                                                        -----------------------
Decrease in cash and cash equivalents                    (302,506)     (143,389)

Cash and cash equivalents at beginning of year            981,448       760,508
                                                        -----------------------
Cash and cash equivalents at end of period              $ 678,942     $ 617,119
                                                        =======================
The  accompanying  notes are an integral  part of these  consolidated  financial
statements

          THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


     (a)  In the opinion of  management,  the  consolidated  balance sheet as of
          March 31,  2000,  the  consolidated  income  statements  for the three
          months ended March 31, 2000 and 1999,  the  consolidated  statement of
          comprehensive  income for the three  months  ended  March 31, 2000 and
          1999,  and the  consolidated  statement  of cash  flows  for the three
          months ended March 31, 2000 and 1999,  contain all adjustments  (which
          include only normal recurring adjustments) necessary to present fairly
          the financial position,  results of operations and cash flows at March
          31,  2000  and for all  periods  presented.  Certain  information  and
          footnote   disclosures   normally  included  in  financial  statements
          prepared in accordance with generally accepted  accounting  principles
          have been omitted.  It is suggested that these consolidated  financial
          statements  be read in  conjunction  with the  consolidated  financial
          statements  and notes  thereto  included in The  Interpublic  Group of
          Companies,  Inc.'s (the "Company")  December 31, 1999 annual report to
          stockholders.

          Certain  prior year  amounts  have been  reclassified  to conform with
          current  year  presentation.   See   Note (f)  for   illustration   of
          reclassification of income statement amounts for 1999 by quarter.

     (b)  The Company considers all highly liquid investments with a maturity of
          three months or less to be cash equivalents.  Income tax cash payments
          were approximately  $19.6 million and $36.3 million in the first three
          months of 2000 and 1999,  respectively.  Interest  payments during the
          first three  months of 2000 and 1999 were approximately  $10.6 million
          and $5.6 million, respectively.

     (c)  In  October  1999,  the  Company  announced  the  merger of two of its
          advertising networks. The networks affected, Lowe & Partners Worldwide
          and Ammirati  Puris Lintas were combined to form a new agency  network
          called  Lowe  Lintas & Partners  Worldwide.  The merger  involves  the
          consolidation  of operations in Lowe Lintas agencies in  approximately
          24 cities in 22 countries around the world.  Once complete,  the newly
          merged  agency  network will have offices in over 80 countries  around
          the world.

          Since the fourth  quarter of 1999,  the Company has been executing the
          restructuring  in connection with the merger.  As of the current date,
          substantially  all of the  restructuring  activities in the U.S.,  the
          U.K.  and  most  European  and  Latin  American  countries  have  been
          completed.

          In  the  first  quarter  of  2000,  the  Company   recognized  pre-tax
          restructuring  costs of $36.1 million  ($20.7 million net of tax). The
          Company   expects  the   remaining   pre-tax  costs  to  complete  the
          restructuring to approximate  $50-$70  million,  which is in line with
          the Company's  original plan. The remaining costs focus principally on
          finalizing the restructuring in Germany and several smaller markets.

          The total  restructuring  costs of $36.1 million include cash costs of
          $20.3 million.







          A  summary  of the  components  of the total  restructuring  and other
          merger  related  costs is as follows:

(Dollars in millions)

1st Quarter 2000 --------------------------------- Balance Expense Cash Asset Balance at 12/31/99 recognized Paid Write-offs at 3/31/00 ----------- ------------- ---- ---------- ---------- TOTAL BY TYPE Severance and termination costs $43.6 $14.4 $ 9.6 -- $48.4 Fixed asset write-offs 11.1 5.4 -- 16.5 -- Lease termination costs 3.8 4.9 1.7 -- 7.0 Investment write-offs and other 23.4 11.4 .3 32.6 1.9 ------------------------------------------------------ Total $81.9 $36.1 $11.6 $49.1 $57.3 ======================================================
The severance and termination costs recorded in 2000 relate to approximately 265 employees who have been terminated or notified that they will be terminated. The employee groups affected include management, administrative, account management, creative and media production personnel, principally in the U.S. and several European countries. The fixed asset write-offs relate largely to the abandonment of leasehold improvements as part of the merger. The amount recognized in 2000 relates to fixed asset write-offs in 3 offices, the largest of which is in the U.K. Lease termination costs relate to the offices vacated as part of the merger. The lease terminations are expected to be completed by mid-to-late 2000, with the cash portion to be paid out over a period of up to five years. The investment write-offs relate to the loss on sale or closing of certain business units. In 2000, $9.3 million has been recorded as a result of the decision to sell or abandon 2 businesses located in Asia and Europe. In the aggregate, the businesses being sold or abandoned represent an immaterial portion of the revenue and operations of Lowe Lintas & Partners. The write-off amount was computed based upon the difference between the estimated sales proceeds (if any) and the carrying value of the related assets. These sales or closures are expected to be completed by mid 2000. (d) In June 1998, the Financial Accounting Standards Board (the "FASB") issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS 133), which had an initial adoption date of January 1, 2000. In June 1999, the FASB postponed the adoption date of SFAS 133 until January 1, 2001. SFAS 133 will require the Company to record all derivatives on the balance sheet at fair value. Changes in derivative fair values will either be recognized in earnings as offsets to the changes in fair value of related hedged assets, liabilities and firm commitments or, for forecasted transactions, deferred and later recognized in earnings at the same time as the related hedged transactions. The impact of SFAS 133 on the Company's financial statements will depend on a variety of factors, including the future level of forecasted and actual foreign currency transactions, the extent of the Company's hedging activities, the types of hedging instruments used and the effectiveness of such instruments. However, the Company does not believe the effect of adopting SFAS 133 will be material to its financial condition or results of operations. (e) On April 20, 2000, the Company completed the acquisition of NFO Worldwide, Inc. ("NFO"). The acquisition will be accounted for as a pooling of interests. In connection with the NFO acquisition, the Company assumed approximately $180 million in debt. Additionally, on April 20, 2000, the Company acquired substantial assets of the Communications Division of Caribiner International, Inc. for approximately $90 million in cash. The acquisition will be accounted for as a purchase. As the acquisitions occurred subsequent to the end of the first quarter, the financial statements presented in this Form 10-Q do not include the results of operations of the acquired entities. (f) As discussed in Note (a), prior year results have been reclassified to conform with current year presentations. The changes include the introduction of a new line item - "Income from operations." Amounts previously included in "Other income, net" as part of "Gross Income" are now included elsewhere in the Consolidated Income Statement. The following table illustrates the reclassifications made to the income statement for each of the quarters in 1999:
1ST QTR 1999 2ND QTR 1999 3RD QTR 1999 4TH QTR 1999 FULL YEAR 1999 -------------------- ---------------------- ---------------------- ---------------------- --------------------- Prior Yr Current Yr Prior Yr Current Yr Prior Yr Current Yr Prior Yr Current Yr Prior Yr Current Yr Format Format Format Format Format Format Format Format Format Format -------------------- ---------------------- ---------------------- ---------------------- --------------------- Revenue $908,081 $908,081 $1,096,621 $1,096,621 $1,021,357 $1,021,357 $1,401,244 $1,401,244 $4,427,303 $4,427,303 -------- ---------- ---------- ---------- --------- Other income, net 16,999 37,812 22,646 56,758 134,215 -------- ---------- ---------- ---------- ---------- Gross Income 925,080 1,134,433 1,044,003 1,458,002 4,561,518 -------- ---------- ---------- ---------- ---------- Operating expenses 830,131 825,631 873,170 864,301 914,821 906,898 1,207,734 1,196,793 3,825,856 3,793,623 Restructuring and other merger related costs 84,183 84,183 84,183 84,183 Interest expense 13,945 16,497 17,478 18,502 66,422 -- ------------------ ---------------------- ---------------------- ---------------------- ---------------------- Total costs 844,076 825,631 889,667 864,301 932,299 906,898 1,310,419 1,280,976 3,976,461 3,877,806 ------------------ ---------------------- ---------------------- ---------------------- ---------------------- Income from Operations 82,450 232,320 114,459 120,268 549,497 Interest expense (13,945) (16,497) (17,478) (18,502) -- (66,422) Other income, net 12,499 28,943 14,723 45,817 -- 101,982 ------------------ ---------------------- ---------------------- ---------------------- ---------------------- Income before provision for income taxes 81,004 81,004 244,766 244,766 111,704 111,704 147,583 147,583 585,057 585,057 Provision for income taxes 33,618 33,618 98,878 98,878 47,698 47,698 56,147 56,147 236,341 236,341 ------------------ ---------------------- ---------------------- ---------------------- ---------------------- Income of consolidated companies 47,386 47,386 145,888 145,888 64,006 64,006 91,436 91,436 348,716 348,716 Income applicable to minority (3,599) (3,599) (8,905) (8,905) (5,981) (5,981) (14,939) (14,939) (33,424) (33,424) Equity in net income of unconsolidated affiliates 998 998 2,426 2,426 1,019 1,019 2,186 2,186 6,629 6,629 ------------------ ---------------------- ---------------------- ---------------------- ---------------------- Net Income $44,785 $ 44,785 $ 139,409 $ 139,409 $ 59,044 $ 59,044 $ 78,683 $ 78,683 $ 321,921 $ 321,921 ================== ====================== ====================== ====================== ======================
Item 2 THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS The Company reported net income of $36.3 million or $.13 diluted earnings per share for the three months ended March 31, 2000. Excluding the impact of restructuring and other merger related costs, which are discussed below, net income was $57.1 million or $.20 diluted earnings per share, compared to $44.8 million or $.16 diluted earnings per share for the three months ended March 31, 1999. Worldwide revenue for the three months ended March 31, 2000 increased $182 million, or 20%, to $1.1 billion compared to the same period in 1999. Domestic revenue increased $129 million or 26% during the first quarter of 2000 compared to 1999. International revenue increased $52 million or 12% during the first quarter of 2000 compared to 1999. International revenue would have increased 19% excluding the effect of the strengthening of the U.S. dollar. The increase in worldwide revenue is a result of both new business growth and growth from acquisitions. Exclusive of acquisitions, worldwide revenue on a constant dollar basis increased 13% for the first quarter of 2000 compared to the prior year quarter. Revenue from other specialized marketing services, which include media buying, market research, relationship (direct) marketing, sales promotion, public relations, sports and event marketing, healthcare marketing and e-business consulting and communications, comprised approximately 41% of the total worldwide revenue for the three months ended March 31, 2000, compared to 36% for the prior year quarter, and is expected to approach 50% for the full year 2000. Worldwide operating expenses for the first quarter 2000, excluding restructuring and other merger related costs were $982 million, an increase of 19% over the prior year quarter. This increase is consistent with the 20% increase in revenue for the same period. Salaries and related expenses were $643 million or 59% of revenue for the first quarter of 2000 as compared to $544 million or 60% of revenue for the first quarter of 1999. Office and general expenses were $339 million for the first quarter of 2000 compared to $282 million for the first quarter of 1999. Income from operations was $71 million for the first quarter of 2000. Excluding restructuring and other merger related costs, income from operations was $107 million for the first quarter of 2000, compared to $82 million for the first quarter of 1999, an increase of 30%. Amortization of goodwill was $21 million for the first quarter of 2000, compared to $15 million for the first quarter of 1999. Exclusive of acquisitions, foreign exchange fluctuations and amortization of goodwill, income from operations increased 22% for the first quarter of 2000 compared to the first quarter of 1999. In October 1999, the Company announced the merger of two of its advertising networks. The networks affected, Lowe & Partners Worldwide and Ammirati Puris Lintas were combined to form a new agency network called Lowe Lintas & Partners Worldwide. The merger involves the consolidation of operations in Lowe Lintas agencies in approximately 24 cities in 22 countries around the world. Once complete, the newly merged agency network will have offices in over 80 countries around the world. Since the fourth quarter of 1999, the Company has been executing the restructuring in connection with the merger. As of the current date, substantially all of the restructuring activities in the U.S., the U.K. and most European and Latin American countries have been completed. In the first quarter of 2000, the Company recognized pre-tax restructuring costs of $36.1 million ($20.7 million net of tax). The Company expects the remaining pre-tax costs to complete the restructuring to approximate $50-$70 million, which is in line with the Company's original plan. The remaining costs focus principally on finalizing the restructuring in Germany and several smaller markets. The total restructuring costs of $36.1 million include cash costs of $20.3 million. A summary of the components of the total restructuring and other merger related costs is as follows:
1st Quarter 2000 --------------------------------- Balance Expense Cash Asset Balance at 12/31/99 recognized Paid Write-offs at 3/31/00 ----------- ------------- ---- ---------- ---------- TOTAL BY TYPE Severance and termination costs $43.6 $14.4 $ 9.6 -- $48.4 Fixed asset write-offs 11.1 5.4 -- 16.5 -- Lease termination costs 3.8 4.9 1.7 -- 7.0 Investment write-offs and other 23.4 11.4 .3 32.6 1.9 ------------------------------------------------------ Total $81.9 $36.1 $11.6 $49.1 $57.3 ======================================================
The severance and termination costs recorded in 2000 relate to approximately 265 employees who have been terminated or notified that they will be terminated. The employee groups affected include management, administrative, account management, creative and media production personnel, principally in the U.S. and several European countries. The fixed asset write-offs relate largely to the abandonment of leasehold improvements as part of the merger. The amount recognized in 2000 relates to fixed asset write-offs in 3 offices, the largest of which is in the U.K. Lease termination costs relate to the offices vacated as part of the merger. The lease terminations are expected to be completed by mid-to-late 2000, with the cash portion to be paid out over a period of up to five years. The investment write-offs relate to the loss on sale or closing of certain business units. In 2000, $9.3 million has been recorded as a result of the decision to sell or abandon 2 businesses located in Asia and Europe. In the aggregate, the businesses being sold or abandoned represent an immaterial portion of the revenue and operations of Lowe Lintas & Partners. The write-off amount was computed based upon the difference between the estimated sales proceeds (if any) and the carrying value of the related assets. These sales or closures are expected to be completed by mid 2000. Other income, net, consists of interest income, investment income and net gains from equity investments, all of which have increased at comparable rates over the prior year quarter. The effective tax rate for the three months ended March 31, 2000 was 42.5%, compared to 41.5% in 1999. The difference between the effective and statutory rates is primarily due to foreign losses with no tax benefit, losses from translation of foreign currencies which provided no tax benefit, state and local taxes, foreign withholding taxes on dividends and nondeductible goodwill expense. LIQUIDITY AND CAPITAL RESOURCES Working capital at March 31, 2000 was $22 million, a decrease of $109 million from December 31, 1999. The decrease is partly due to expenditures for additional strategic long-term investments and a net reduction in long-term debt during the first quarter of 2000. The ratio of current assets to current liabilities was slightly above 1 to 1 at March 31, 2000. Historically, cash flow from operations has been the primary source of working capital and management believes that it will continue to be so in the future. Net cash used in operating activities was $172 million for the first quarter of 2000 and $196 million for the first quarter of 1999. The Company's working capital is used primarily to provide for the operating needs of its subsidiaries, which include payments for space or time purchased from various media on behalf of its clients. The Company's practice is to bill and collect from its clients in sufficient time to pay the amounts due media on a timely basis. Other uses of working capital include the payment of cash dividends, acquisitions, capital expenditures and the reduction of long-term debt. In addition, during the first three months of 2000, the Company acquired 1,080,200 shares of its own stock for the purpose of fulfilling the Company's obligations under its various compensation plans. OTHER MATTERS Acquisitions - ------------ On April 20, 2000, the Company completed the acquisition of NFO Worldwide, Inc. ("NFO"). The acquisition will be accounted for as a pooling of interests. In connection with the NFO acquisition, the Company assumed approximately $180 million in debt. Additionally, on April 20, 2000, the Company acquired substantial assets of the Communications Division of Caribiner International, Inc. for approximately $90 million in cash. The acquisition will be accounted for as a purchase. As the acquisitions occurred subsequent to the end of the first quarter, the financial statements presented in this Form 10-Q do not include the results of operations of the acquired entities. Year 2000 Issue - --------------- Subsequent to completion of the Company's Year 2000 compliance programs, the Company has not experienced any significant Year 2000 disruptions to its business nor has the Company been made aware of any significant disruptions impacting its customers or critical suppliers. Cautionary Statement - -------------------- Statements by the Company in this document, that are not matters of historical fact, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. New Accounting Guidance - ----------------------- In June 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS 133), which had an initial adoption date of January 1, 2000. In June 1999, the FASB postponed the adoption date of SFAS 133 until January 1, 2001. The Company does not believe the effect of adopting SFAS 133 will be material to its financial condition or results of operations. Conversion to the Euro - ---------------------- On January 1, 1999, certain member countries of the European Union established fixed conversion rates between their existing currencies and the European Union's common currency (the "Euro"). The Company conducts business in member countries. The transition period for the introduction of the Euro is between January 1, 1999, and June 30, 2002. The Company is addressing the issues involved with the introduction of the Euro. The major important issues facing the Company include: converting information technology systems; reassessing currency risk; negotiating and amending contracts; and processing tax and accounting records. Based upon progress to date, the Company believes that use of the Euro will not have a significant impact on the manner in which it conducts its business affairs and processes its business and accounting records. Accordingly, conversion to the Euro has not, and is not expected to have a material effect on the Company's financial condition or results of operations. Item 3. Quantitative and Qualitative Disclosures about Market Risk The Company's financial market risk arises from fluctuations in interest rates and foreign currencies. Most of the Company's debt obligations are at fixed interest rates. A 10% change in market interest rates would not have a material effect on the Company's pre-tax earnings, cash flows or fair value. At March 31, 2000, the Company had an insignificant amount of foreign currency derivative financial instruments in place. The Company does not hold any financial instrument for trading purposes. PART II - OTHER INFORMATION Item 2. CHANGES IN SECURITIES --------------------- (c) RECENT SALES OF UNREGISTERED SECURITIES (1) On January 1, 2000, the Registrant issued a total of 43,068 shares of Interpublic Common Stock, par value $.10 per share, (the "Interpublic Stock") to shareholders of a foreign company as final payment of the purchase price for 100% of the capital stock of the foreign company. The Interpublic stock issued had a market value of $2,389,704 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in an "offshore transaction" and solely to "non-U.S. persons" in reliance on Rule 903(b)(3) of Regulation S under the Securities Act. (2) On January 1, 2000 the Registrant issued 43,068 shares of Interpublic Stock valued at $2,389,704 and paid $1,912,000 cash to the former shareholders of the acquired company. This represented the final deferred payment of the purchase price for the final 40% of the company required during the first quarter of 1998. The shares of Interpublic Stock were issued by the Registrant without registration in an "offshore transaction" and solely to "non US persons" in reliance on Rule 903(b)(3) of Regulation S under the Securities Act. (3) On January 4, 2000, a subsidiary of the Registrant acquired 100% of the capital stock of a domestic company in consideration for which the Registrant paid $4,862,360.09 in cash and issued a total of 94,287 shares of Interpublic Stock to the security holders of the company. The shares of Interpublic Stock had a market value of $4,862,313.77 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the acquired company's former stockholders. (4) On January 11, 2000, a subsidiary of the Registrant acquired 100% of the capital stock of a domestic company in consideration for which the Registrant paid $1,273,137.59 in cash and issued a total of 22,509 shares of Interpublic Stock to the security holders of the acquired company. The shares of Interpublic Stock had a market value of $1,273,137.59 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the acquired company's former stockholders. (5) On January 12, 2000, Registrant paid $1,373,626 in cash and on January 13, 2000 issued 27,400 shares of Interpublic Stock to the former shareholders of a foreign company which was acquired in the fourth quarter of 1998. This represented a deferred payment of the purchase price. The shares of Interpublic Stock were valued at $1,438,500 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in an "offshore transaction" and solely to "non-U.S. persons" in reliance on Rule 903(b)(3) of Regulation S under the Securities Act. (6) On January 20, 2000 the Registrant issued 2,914 shares of Interpublic Stock and paid US$ 125,000 in cash to the former shareholder of a domestic company which was acquired in the second quarter of 1998. This represented a deferred payment of the purchase price. The shares of Interpublic Stock were valued at US$ 150,000 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the acquired company's former stockholder. (7) On January 21, 2000, the Registrant acquired 80% of the assets of a domestic company in consideration for which the Registrant paid $10,500,000 in cash and issued 86,207 shares of Interpublic Stock to the stockholders of the selling company. The shares of Interpublic Stock were valued at $4,500,000 on the date of issuance. The share of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the stockholders of the selling company. (8) On February 11, 2000, a subsidiary of the Registrant acquired substantially all of the assets and assumed substantially all the liabilities of a domestic company in consideration for which the Registrant paid $2,700,000 in cash and issued a total of 6,129 shares of Interpublic Stock to the stockholder of the selling company. The shares of Interpublic Stock had a market value of $300,000 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the stockholder of the selling company. (9) On February 7, 2000, a subsidiary of the Registrant acquired certain of the assets and assumed certain of the liabilities of a domestic company in consideration for which the Registrant paid $1,500,000 in cash and issued 28,616 shares of Interpublic Stock to the selling company's stockholders. The shares of Interpublic Stock had a market value of $1,375,000 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the stockholders of the selling company. (10) On February 14, 2000, a subsidiary of the Registrant acquired 100% of the capital stock of two related companies in consideration for which Registrant paid $4,364,392.10 in cash and issued 10,191 shares of Interpublic Stock to the shareholders of the acquired companies. The shares of Interpublic Stock were valued at $454,136.44 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in an "offshore transaction" and solely to "non-U.S. persons" in reliance on Rule 903(b)(3) of Regulation S under the Securities Act. (11) On February 22, 2000, Registrant paid $913,888 in cash and on February 25, 2000 issued 18,803 shares of Interpublic Stock to the former shareholders of a foreign company which was acquired in the first and third quarters of 1999. This represented a deferred payment of the purchase price. The shares of Interpublic Stock were valued at $720,390 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in an "offshore transaction" and solely to "non-U.S. persons" in reliance on Rule 903(b)(3) of Regulation S under the Securities Act. (12) On February 23, 2000 the Registrant issued a total of 3,888 shares of Interpublic Stock to the former shareholders of a company 49% of which was acquired in the second quarter 1994, 31% of which was acquired in the first quarter of 1998 and 6% of which was acquired in the first quarter of 2000. Of the aggregate amount of shares issued on February 23, 2000, 1,555 of the shares of Interpublic Stock together with a payment of US$ 150,000 represented a deferred payment of the purchase price for the 31% of the company. Those shares were valued at US$ 75,000 at the date of issuance. Of the aggregate number of shares issued on February 23, 2000, 2,333 of the shares together with a payment of US$ 450,000 represented the purchase price for the 6% of the company. Those shares were valued at US$ 112,500 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in an "offshore transaction" and solely to "non US persons" in reliance on Rule 903(b)(3) of Regulation S under the Securities Act. (13) On March 1, 2000, a subsidiary of the Registrant acquired 55% of the limited liability company interest units of a company in consideration for which Registrant paid $13,000,000.00 in cash and issued 24,875 shares of Interpublic Stock to the limited liability company interest unit holders of the acquired company. The shares of Interpublic Stock were valued at $998,109.38 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the acquired company's limited liability company interest unit holders. (14) On March 1, 2000, the Registrant issued 3,104 shares of Interpublic Stock and paid $350,000 in cash to the shareholder of a company which was 80% acquired by the Registrant in the third quarter of 1999. This represented a deferred payment of the purchase price. The shares of Interpublic Stock were valued at $150,000 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the acquired company's stockholder. (15) On March 10, 2000, a subsidiary of the Registrant acquired 100% of the issued and outstanding shares of a domestic company in consideration for which the Registrant paid $962,500 in cash and issued 23,298 shares of Interpublic Stock to the acquired company's stockholder. The shares of Interpublic Stock had a market value of $962,500 on the date of issuance. In addition, 11,649 shares of Interpublic Stock were "heldback" in escrow, to be released upon the satisfaction of certain financial conditions. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) of the Securities Act, based on the sophistication of the acquired company's former stockholder. (16) On March 15, 2000, the Registrant issued 18,848 shares of Interpublic Stock and paid $1,200,000 in cash to the shareholders of a company which was 80% acquired by the Registrant in the second quarter of 1999. This represented a deferred payment of the purchase price. The shares of Interpublic Stock were valued at $800,000 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Rule 506 of Regulation D, based on the accredited investor status or sophistication of the shareholders of the acquired company. (17) On March 29, 2000, the Registrant issued 43,855 shares of Interpublic Stock to the former shareholders of a domestic company which was acquired in the second quarter of 1999. This represented a deferred payment of the purchase price. The shares of Interpublic Stock were valued at $1,736,452 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the acquired company's former stockholders. (18) On March 31, 2000, the Registrant acquired a domestic company in consideration for which the Registrant issued 527,640 shares of Interpublic Stock to the stockholders of the acquired company. The shares of Interpublic Stock were valued at $26,000,000 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the acquired company's former stockholders. (19) On March 31, 2000, the Registrant paid $4,420,251 in cash and issued 36,071 shares of Interpublic Stock to the former shareholders of two domestic companies which were acquired in the fourth quarter of 1998. This represented a deferred payment of the purchase price. The shares of Interpublic Stock were valued at $1,473,417 on the date of issuance. The shares of Interpublic Stock were issued by the Registrant without registration in reliance on Section 4(2) under the Securities Act, based on the sophistication of the acquired company's former stockholders. Item 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) EXHIBITS -------- Exhibit 10(a) Amended and Restated Outside Directors Stock Incentive Plan. Exhibit 10(b) Supplemental Agreement, dated as of April 1, 2000 to an Employment Agreement between the Registrant and John J. Dooner, Jr. Exhibit 10(c) Supplemental Agreement, dated as of April 1, 2000 to an Employment Agreement between the Registrant and Sean F. Orr. Exhibit 11 Computation of Earnings Per Share. Exhibit 27 Financial Data Schedule. (b) REPORTS ON FORM 8-K The following reports on Form 8-K were filed during the quarter ended March 31, 2000: (1) Report, dated January 24, 2000, Item 5 Other Events and Item 7 Exhibits - Press Release, dated January 23, 2000, that announced certain restructuring charges expected to be incurred by the Registrant in connection with the merger of two of its subsidiaries, Ammirati Puris Lintas and Lowe & Partners Worldwide (the "Restructuring Charges"). (2) Report, dated February 25, 2000, Item 5 Other Events and Item 7 Exhibits - Two Press Releases, dated February 23, 2000 and February 24, 2000 respectively. The press release, dated February 23, 2000, included a Consolidated Summary of Earnings for Twelve Months and Fourth Quarter Report 1999 and 1998 that showed the results of the Registrant before and after the effects of the Restructuring Charges. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE INTERPUBLIC GROUP OF COMPANIES, INC. (Registrant) Date: May 12, 2000 BY /S/ PHILIP H. GEIER, JR. ------------------------ PHILIP H. GEIER, JR. Chairman of the Board and Chief Executive Officer Date: May 12, 2000 BY /S/ SEAN F. ORR ------------------------ SEAN F. ORR Executive Vice President Chief Financial Officer INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION - ----------- ----------- Exhibit 10(a) Amended and Restated Outside Directors Stock Incentive Plan Exhibit 10(b) Supplemental Agreement, dated as of April 1, 2000 to an Employment Agreement between the Registrant and John J. Dooner, Jr. Exhibit 10(c) Supplemental Agreement, dated as of April 1, 2000 to an Employment Agreement between the Registrant and Sean F. Orr Exhibit 11 Computation of Earnings Per Share Exhibit 27 Financial Data Schedule
                                                                   EXHIBIT 10(A)

             THE INTERPUBLIC OUTSIDE DIRECTORS' STOCK INCENTIVE PLAN

                                    ARTICLE I

                                  INTRODUCTION

          1.1. NAME OF PLAN.  The name of the Plan is the  "Interpublic  Outside
Directors' Stock Incentive Plan."

          1.2. PURPOSE OF PLAN. The Plan is being established to attract, retain
and compensate for service highly  qualified  individuals to serve as members of
the Board of  Directors  of the  Corporation,  but not current  employees of the
Corporation  or any of its  Subsidiaries,  and to enable them to increase  their
ownership in the Corporation's  Common Stock. The Plan will be beneficial to the
Corporation and its  stockholders  since it will allow these directors to have a
greater personal financial stake in the Corporation through the ownership of the
Corporation's  Common Stock, in addition to strengthening  their common interest
with  stockholders  in increasing  the value of the  Corporation's  Common Stock
longer term.

          1.3.  EFFECTIVE  DATE. The effective date of the Plan is June 1, 1994,
or such later date as stockholder approval is obtained.


                                   ARTICLE II

                                   DEFINITIONS

          When used in capitalized  form in the Plan, the following  terms shall
have the following meanings, unless the context clearly indicates otherwise:

          ACT. "Act" means the Securities  Exchange Act of 1934, as currently in
effect or hereafter amended.

          COMMITTEE.  "Committee" means the directors of the Corporation who are
not Outside Directors.

          COMMON STOCK.  "Common Stock" means shares of the  Corporation's  $.10
par value common stock.

          CORPORATION.  "Corporation"  means The Interpublic Group of Companies,
Inc.

          FAIR MARKET VALUE. "Fair Market Value" means the mean of the high and
low prices at which the Common Stock of the Corporation is traded on the date in
question, as reported on the composite tape for New York Stock Exchange issues.

          OPTION.  "Option"  means a right to  purchase  Common  Stock under the
Plan.

          OPTION PERIOD. "Option Period" means the period beginning on the third
anniversary  of the  date  of  grant  of an  Option  and  ending  on  the  tenth
anniversary of the date of grant.

          OUTSIDE DIRECTORS.  "Outside  Directors" means members of the Board of
Directors of the  Corporation who are not employees of the Corporation or any of
its Subsidiaries.

          PLAN. "Plan" means the Interpublic  Outside Directors' Stock Incentive
Plan, as amended from time to time.

          RESTRICTED  SHARES.  "Restricted  Shares" means shares of Common Stock
granted  pursuant to Article  VIII hereof and  subject to the  restrictions  and
other terms and conditions set forth in the Plan.

          RESTRICTION   PERIOD.   "Restriction   Period"  with  respect  to  any
Restricted  Shares  means  the  period  beginning  on the  date  on  which  such
Restricted Shares are granted and ending on the fifth anniversary of the date of
grant.

          SUBSIDIARY.  "Subsidiary"  means a subsidiary of the Corporation  that
meets the  definition of a  "subsidiary  corporation"  in Section  424(f) of the
Internal Revenue Code of 1986, as amended.


                                   ARTICLE III

                                   ELIGIBILITY

          3.1.  CONDITION.  An individual who is an Outside Director on or after
June 1, 1994 shall be eligible to participate in the Plan.


                                   ARTICLE IV

                                SHARES AVAILABLE

          4.1. NUMBER OF SHARES AVAILABLE.  An aggregate of Two Hundred Thousand
(200,000)  shares of Common  Stock are  available  for  issuance  under the Plan
pursuant to awards of Options and Restricted Shares. Such shares of Common Stock
may be authorized but unissued shares,  treasury shares,  or shares purchased on
the open market.

          4.2.  ADJUSTMENTS.  The  number  of  shares  of  Common  Stock  of the
Corporation reserved for awards of Options and Restricted Shares under the Plan,
the number of shares  comprising awards of Restricted  Shares,  and the exercise
price and the number of shares issuable under any outstanding Options,  shall be
subject to  proportionate  adjustment by the Committee to the extent required to
prevent dilution or enlargement of the rights of the grantee in the event of any
stock  split,   stock   dividend,   recapitalization,   merger,   consolidation,
reorganization,  combination,  or exchange of shares or other similar event. All
determinations  made by the  Committee  with  respect to  adjustment  under this
Section 4.2 shall be conclusive and binding for all purposes of the Plan.

          4.3 EFFECT OF STOCK SPLITS,  ETC. ON RESTRICTED  SHARES. Any shares of
Common  Stock of the  Corporation  received by a grantee as a stock  dividend on
Restricted  Shares, or as a result of stock splits,  combinations,  exchanges of
shares,  reorganizations,  mergers,  consolidations,  or other events  affecting
Restricted  Shares,  shall  have  the  same  status,  be  subject  to  the  same
restrictions,  and bear the same legend as the shares with respect to which they
were issued.


                                    ARTICLE V

                                GRANTS OF OPTIONS

          5.1. OPTIONS. The only types of options which may be granted under the
Plan are non-qualified stock options.



          5.2. ANNUAL GRANT. Each year on the first Friday in the month of June,
each  Outside  Director  then  serving  shall  automatically  receive  an Option
covering 2,000 shares of Common Stock of the  Corporation.  Notwithstanding  the
foregoing,  if, on that first  Friday,  the General  Counsel of the  Corporation
determines, in his or her sole discretion, that the Corporation is in possession
of material,  undisclosed  information  about the  Corporation,  then the annual
grant of Options to Outside  Directors  shall be suspended  until the second day
after  public  dissemination  of  such  information.  If  Common  Stock  of  the
Corporation  is not  traded on the New York Stock  Exchange  on any date a grant
would  otherwise be made,  then the grant shall be as of the next day thereafter
on which Common Stock of the Corporation is so traded.

          5.3. OPTION PRICE. The exercise price per share of the Option shall be
the Fair Market Value of the Common Stock on the date of the grant.


                                   ARTICLE VI

                                  OPTION PERIOD

          6.1.  DURATION.   An  Option  granted  under  the  Plan  shall  become
exercisable three years after the date of grant and shall expire ten years after
the date of grant, unless it is sooner terminated pursuant to Section 9.1 of the
Plan.


                                   ARTICLE VII

                        PAYMENT UPON EXERCISE OF OPTIONS

          7.1.  EXERCISE PRICE. The exercise price of an Option shall be paid in
cash in U.S. Dollars on the date of exercise.


                                  ARTICLE VIII

                                RESTRICTED SHARES

          8.1. GRANTS. On the first Friday in June 1996, and on the first Friday
in June every five years thereafter during the term of the Plan, the Corporation
shall grant Two Thousand (2,000) Restricted Shares to each person who is serving
as an Outside Director as of such date.

          8.2 ADDITIONAL  RESTRICTIONS.  Each Restricted Share granted under the
Plan shall be subject to the following terms and conditions:

               A. Rights with Respect to Shares.

                  A grantee to whom  Restricted  Shares have been granted  under
the Plan shall have  absolute ownership  of such shares, including  the right to
vote the same and to receive dividends thereon,  subject, however, to the terms,
conditions,  and  restrictions  described in the Plan.  The  grantee's  absolute
ownership shall become effective only after he or she has received a certificate
or certificates for the number of shares of Common Stock awarded, or after he or
she has received  notification  that such  certificate or certificates are being
held in custody for him or her.

               B. Restrictions.

                  Until  the  expiration  of the  Restriction  Period  therefor,
Restricted Shares shall be subject to the following conditions:



                  (i)   Restricted   Shares   shall   not  be  sold,   assigned,
transferred, pledged, hypothecated, or otherwise disposed of; and

                  (ii) if the grantee ceases to serve as an Outside Director for
any reason,  then, except as otherwise  provided in Section 9.2 of the Plan, any
Restricted Shares for which the Restriction  Period has not lapsed that had been
delivered  to, or held in custody  for,  the  grantee  shall be  returned to the
Corporation  forthwith,  and all the rights of the grantee  with respect to such
shares shall  immediately  terminate without any payment of consideration by the
Corporation.

               C. Lapse of Restrictions.

                  Except as otherwise set forth in Section 9.2 of the Plan,  the
restrictions set forth in Paragraph B of this Section 8.2 for Restricted  Shares
shall lapse at the end of the Restriction Period with respect to such shares.

               D. Tax Assistance Payments.

                  When the  restrictions  set forth in Paragraph B hereof lapse,
the  Committee  may,  in its  discretion,  direct the  Corporation  to make cash
payments to assist the grantee in  satisfying  his federal  income tax liability
with respect to the Restricted  Shares.  Such payments may be made only to those
grantees  whose  performance  the  Committee   determines  to  have  been  fully
satisfactory  between the date on which the  Restricted  Shares were granted and
the date on which such restrictions lapse. The Committee may, in its discretion,
estimate  the amount of the federal  income tax in  accordance  with  methods or
criteria uniformly applied to grantees similarly situated, without regard to the
individual circumstances of a particular grantee.

               E. Restrictive Legends; Certificates May be Held in Custody.

                  Certificates   evidencing  Restricted  Shares  shall  bear  an
appropriate  legend  referring  to  the  terms,  conditions,   and  restrictions
described  in the Plan.  Any  attempt to dispose  of such  Restricted  Shares in
contravention of the terms,  conditions,  and restrictions described in the Plan
shall be  ineffective.  The  Committee  may enact  rules that  provide  that the
certificates  evidencing  such  shares may be held in custody by a bank or other
institution,  or that the  Corporation  may itself  hold such shares in custody,
until the restrictions thereon shall have lapsed.


                                   ARTICLE IX

                     CESSATION OF SERVICE, RETIREMENT, DEATH

          9.1. OPTIONS.

               (A)  Options Granted Prior to June 1, 1996.

                    (i) With  respect to each  grantee who was first  elected or
appointed as an Outside  Director on or after January 1, 1995, and who ceases to
be an Outside Director for any reason other than death,  Options which have been
granted prior to June 1, 1996 and which are exercisable on the date of cessation
of service  shall  continue  to be  exercisable  by the  grantee for ninety days
following the date of cessation of service, but in no event after the expiration
of the Option Period.

                    (ii) With respect to each  grantee who was first  elected or
appointed as an Outside  Director  prior to January 1, 1995: (A) if such grantee
ceases to serve as an Outside  Director (other than because of his or her death)
and, as of the date of such cessation of service is eligible for a benefit under
the Interpublic Outside Directors' Pension Plan, Options which have been granted

prior to June 1, 1996 and  which are  exercisable  on the date of  cessation  of
service  shall  continue  to be  exercisable  by the  grantee  for sixty  months
following  the date of  retirement  from the  Board,  but in no event  after the
expiration of the Option  Period,  and (B) if such grantee ceases to serve as an
Outside Director (other than because of his or her death) and, as of the date of
such  cessation of service is not eligible for a benefit  under the  Interpublic
Outside  Directors'  Pension Plan, Options which have been granted prior to June
1, 1996 and which are  exercisable  on the date of  cessation  of service  shall
continue to be exercisable by the grantee for ninety days following cessation of
service, but in no event after the expiration of the Option Period.

                    (iii)  Upon  the  death of a  grantee  while  serving  as an
Outside  Director,  Options  which have been  granted  prior to June 1, 1996 and
which  are  exercisable  on the date of death  shall be  exercisable  thirty-six
months  from date of  death,  but in no event  after  expiration  of the  Option
Period, by the grantee's legal representatives, heirs or beneficiaries.

               (B)  Options Granted On or After June 1, 1996.

                    With respect to each grantee who receives a grant of Options
on or after June 1,  1996,  and who  ceases to be an  Outside  Director  for any
reason  (including  without  limitation  death),  such  Options  which have been
granted  on or after  June 1,  1996 and  which  are  exercisable  on the date of
cessation  of service  shall  continue to be  exercisable  by the grantee or the
grantee's legal  representatives,  heirs or beneficiaries  for thirty-six months
following the date of cessation of service, but in no event after the expiration
of the Option Period.

          9.2.  RESTRICTED SHARES.  Upon a grantee's  cessation of service as an
Outside  Director  for any  reason  (including  death),  on or after  the  first
anniversary  of the  date on which  the  Restricted  Shares  were  granted,  the
Restriction Period shall lapse on the date of the grantee's cessation of service
with respect to a fraction of the Restricted Shares awarded to such grantee. The
numerator of the fraction  shall be the number of months that have elapsed since
the Restricted Shares were granted, and the denominator of the fraction shall be
the number of months in the Restriction  Period;  provided that in the case of a
fractional  month,  a period of fifteen  days or more shall be treated as a full
month, and a period of less than fifteen days shall be disregarded.

          9.3. FORFEITURE.

               (A) If an  Option  is not  exercisable  on the date on which  the
grantee ceases to serve as an Outside Director, or if an Option is not exercised
in full before it ceases to be exercisable in accordance  with Article VI hereof
and the preceding provisions of this Article IX, the Option shall, to the extent
not previously exercised, thereupon be forfeited.

               (B) If a grantee's  interest in any  Restricted  Shares  shall be
terminated  pursuant  to  Section  8.2B of the Plan,  he or she shall  forthwith
deliver to the  Secretary  or any  Assistant  Secretary of the  Corporation  the
certificates for such shares,  accompanied by such instrument of transfer as may
be required by the Secretary or any Assistant Secretary of the Corporation.


                                    ARTICLE X

              ADMINISTRATION, AMENDMENT AND TERMINATION OF THE PLAN

          10.1. ADMINISTRATION. The Plan shall be administered by the Committee.

          10.2. AMENDMENT AND TERMINATION. The Plan may be terminated or amended
by the Committee as it deems advisable.  However, an amendment revising the size
or  frequency  of awards of Options or  Restricted  Shares,  the duration of the

Restriction  Periods for  Restricted  Shares,  or the  exercise  price,  date of
exercisability  or Option Period of an Option shall not be made more  frequently
than every six months unless  necessary to comply with the Internal Revenue Code
of 1986, as amended. No amendment may revoke or alter in a manner unfavorable to
the  grantees any Options or  Restricted  Shares then  outstanding,  nor may the
Committee amend the Plan without stockholder  approval where the absence of such
approval would cause the Plan to fail to comply with Rule 16b-3 under the Act or
any other requirement of any applicable law or regulation.

          10.3.  EXPIRATION OF THE PLAN. Options or Restricted Shares may not be
granted  under the Plan after June 7, 2004,  but Options  granted  prior to that
date shall continue to become exercisable and may be exercised  according to the
terms of the Plan.


                                   ARTICLE XI

                               NONTRANSFERABILITY

          11.1. OPTIONS NOT TRANSFERABLE.  No Options granted under the Plan are
transferable other than by will or the laws of descent and distribution.  During
the grantee's  lifetime,  an Option may be exercised  only by the grantee or the
grantee's guardian or legal representative.


                                   ARTICLE XII

                         COMPLIANCE WITH SEC REGULATIONS

          12.1. RULE 16B-3. It is the Corporation's  intent that the Plan comply
in all respects with new Rule 16b-3 under the Act and that the Plan qualify as a
formula plan meeting the  conditions of paragraph  (c)(2)(ii) of new Rule 16b-3.
If any provision of the Plan is found not to be in compliance  with the Rule, or
the Plan is found not to qualify as such formula plan,  any  provision  which is
not in compliance  or does not qualify shall be deemed to be null and void.  All
grants and exercises of Options, and grants of Restricted Shares, under the Plan
shall be executed in accordance  with the  requirements of Section 16 of the Act
and any regulations promulgated thereunder.


                                  ARTICLE XIII

                               RIGHTS OF DIRECTORS

          13.1.  RIGHTS TO AWARDS.  Except as provided  in the Plan,  no Outside
Director  shall have any claim or right to be  granted an award  under the Plan.
Neither  the Plan nor any action  thereunder  shall be  construed  as giving any
Outside  Director any right to be retained in the services of the Corporation in
any capacity.



                                                          Restated and Amended
                                                          Through March 31, 2000










                                                                   EXHIBIT 10(B)

                             SUPPLEMENTAL AGREEMENT

               SUPPLEMENTAL  AGREEMENT  made as of April 1, 2000 by and  between
The Interpublic Group of Companies, Inc., a corporation of the State of Delaware
(hereinafter referred to as the "Corporation"),  and JOHN J. DOONER (hereinafter
referred to as "Executive").

                              W I T N E S S E T H;
                              -------------------

               WHEREAS,   the  Corporation  and  Executive  are  parties  to  an
Employment  Agreement  made as of January  1, 1994 as amended by a  Supplemental
Agreement  made as of July 1,  1995,  September  1,  1997 and  January  1,  1999
(hereinafter referred collectively as the "Employment Agreement"); and

               WHEREAS,  the  Corporation  and  Executive  desire  to amend  the
Agreement;

               NOW,  THEREFORE,  in  consideration of the mutual promises herein
and in the Employment  Agreement set forth, the parties hereto,  intending to be
legally bound, agree as follows:


               1.   Paragraph  3.01  of  the  Employment   Agreement  is  hereby
                    amended,  effective  as of April 1,  2000,  so as to  delete
                    "$850,000" and substitute "$1,250,000"

               2.   Except as herein above  amended,  The  Employment  Agreement
                    shall continue in full force and effect.

               3.   This Supplemental Agreement shall be governed by the laws of
                    the State of New York.


                                        THE INTERPUBLIC GROUP OF COMPANIES, INC.

                                        By:  /s/ C. Kent Kroeber
                                             -------------------
                                               C. Kent Kroeber



                                             /s/ John J. Dooner
                                             -------------------
                                               John J. Dooner

















                                                                   EXHIBIT 10(C)

                             SUPPLEMENTAL AGREEMENT
                             ----------------------

               SUPPLEMENTAL  AGREEMENT  made as of April 1, 2000 by and  between
The Interpublic Group of Companies, Inc., a corporation of the State of Delaware
(hereinafter  referred  to as the  "Corporation"),  and  SEAN  ORR  (hereinafter
referred to as "Executive").

                              W I T N E S S E T H;
                              -------------------


               WHEREAS,   the  Corporation  and  Executive  are  parties  to  an
Employment Agreement made as of April 27, 1999 and

               WHEREAS,  the  Corporation  and  Executive  desire  to amend  the
Agreement;

               NOW,  THEREFORE,  in  consideration of the mutual promises herein
and in the Employment  Agreement set forth, the parties hereto,  intending to be
legally bound, agree as follows:

               1.   Paragraph  3.01  of  the  Employment   Agreement  is  hereby
                    amended,  effective  as of April 1,  2000,  so as to  delete
                    "Five Hundred  Thousand  Dollars  ($500,000)" and substitute
                    "Six Hundred Thousand Dollars ($600,000)".

               2.   Except as herein above  amended,  The  Employment  Agreement
                    shall   continue   in  full  force  and   effect.

               3.   This Supplemental Agreement shall be governed by the laws of
                    the State of New York.



                                        THE INTERPUBLIC GROUP OF COMPANIES, INC.

                                        By:  /s/ C. Kent Kroeber
                                             -------------------
                                               C. Kent Kroeber



                                             /s/ Sean F. Orr
                                             -------------------
                                               Sean F. Orr


                                                                      EXHIBIT 11


          THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES
                        COMPUTATION OF EARNINGS PER SHARE
                  (Amounts in Thousands Except Per Share Data)


                                                Three Months Ended March 31
                                                ---------------------------
Basic                                                2000           1999
                                                     ----           ----
Net income                                        $  36,345      $  44,785

Weighted average number of common shares
  Outstanding                                       281,035        272,534

Earnings per common and
  common equivalent share                         $     .13      $     .16
                                                  =========      =========


                                                 Three Months Ended March 31
                                                ----------------------------
Diluted (1)                                          2000           1999
                                                     ----           ----

Net income                                        $  36,345      $  44,785
Add:
Dividends paid net of related income tax
  applicable to restricted stock                        162            143
                                                  ---------      ---------
Net income, as adjusted                           $  36,507      $  44,928
                                                  =========      =========
Weighted average number of common shares
  Outstanding                                       281,035        272,534
Weighted average number of incremental shares
  in connection with restricted stock
  and assumed exercise of stock options              10,253         10,816
                                                  ---------      ---------
        Total                                       291,288        283,350
                                                  =========      =========
Earnings per common and common equivalent
  share                                           $     .13      $     .16
                                                  =========      =========



- ----------

(1)  The  computation  of diluted  EPS for 2000 and 1999  excludes  the  assumed
     conversion  of the  1.80%  Convertible  Subordinated  Notes,  and for  2000
     excludes  the  assumed  conversion  of the 1.87%  Convertible  Subordinated
     Notes, because they were anti-dilutive.

 

5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AND THE INCOME STATEMENT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. THE EPS PRIMARY NUMBER BELOW REFLECTS THE BASIC EARNINGS PER SHARE AS REQUIRED BY FINANCIAL ACCOUNTING STANDARDS NUMBER 128. 1,000 3-MOS DEC-31-2000 MAR-31-2000 678,942 47,982 4,302,075 58,916 0 5,466,584 877,924 492,618 8,400,145 5,444,943 522,068 0 0 29,844 1,514,394 8,400,145 0 1,089,630 0 1,018,543 0 0 17,080 70,819 30,098 36,345 0 0 0 36,345 .13 .13