Company Quick10K Filing
Interpublic Group of Companies
Price21.30 EPS2
Shares392 P/E12
MCap8,345 P/FCF20
Net Debt2,846 EBIT1,008
TEV11,192 TEV/EBIT11
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-07-31
10-Q 2020-03-31 Filed 2020-04-23
10-K 2019-12-31 Filed 2020-02-21
10-Q 2019-09-30 Filed 2019-10-25
10-Q 2019-06-30 Filed 2019-07-25
10-Q 2019-03-31 Filed 2019-04-26
10-K 2018-12-31 Filed 2019-02-25
10-Q 2018-09-30 Filed 2018-10-25
10-Q 2018-06-30 Filed 2018-07-25
10-Q 2018-03-31 Filed 2018-04-27
10-K 2017-12-31 Filed 2018-02-26
10-Q 2017-09-30 Filed 2017-10-26
10-Q 2017-06-30 Filed 2017-07-27
10-Q 2017-03-31 Filed 2017-04-21
10-K 2016-12-31 Filed 2017-02-21
10-Q 2016-09-30 Filed 2016-10-27
10-Q 2016-06-30 Filed 2016-07-28
10-Q 2016-03-31 Filed 2016-04-22
10-K 2015-12-31 Filed 2016-02-22
10-Q 2015-09-30 Filed 2015-10-22
10-Q 2015-06-30 Filed 2015-07-23
10-Q 2015-03-31 Filed 2015-04-24
10-K 2014-12-31 Filed 2015-02-23
10-Q 2014-09-30 Filed 2014-10-23
10-Q 2014-06-30 Filed 2014-07-24
10-Q 2014-03-31 Filed 2014-04-23
10-K 2013-12-31 Filed 2014-02-24
10-Q 2013-09-30 Filed 2013-10-24
10-Q 2013-06-30 Filed 2013-07-25
10-Q 2013-03-31 Filed 2013-04-25
10-K 2012-12-31 Filed 2013-02-22
10-Q 2012-06-30 Filed 2012-07-26
10-Q 2012-03-31 Filed 2012-04-26
10-K 2011-12-31 Filed 2012-02-24
10-Q 2011-09-30 Filed 2011-10-28
10-Q 2011-06-30 Filed 2011-07-28
10-Q 2011-03-31 Filed 2011-04-28
10-K 2010-12-31 Filed 2011-02-25
10-Q 2010-09-30 Filed 2010-10-29
10-Q 2010-06-30 Filed 2010-07-29
10-Q 2010-03-31 Filed 2010-04-29
10-K 2009-12-31 Filed 2010-02-26
8-K 2020-07-29 Earnings, Exhibits
8-K 2020-07-29 Earnings, Exhibits
8-K 2020-05-27
8-K 2020-05-27
8-K 2020-04-22
8-K 2020-04-22
8-K 2020-03-26
8-K 2020-03-26
8-K 2020-02-12
8-K 2020-02-12
8-K 2019-11-01
8-K 2019-10-22
8-K 2019-10-22
8-K 2019-10-15
8-K 2019-09-09
8-K 2019-07-23
8-K 2019-07-23
8-K 2019-06-12
8-K 2019-05-23
8-K 2019-04-26
8-K 2019-04-26
8-K 2019-02-19
8-K 2019-02-13
8-K 2018-11-13
8-K 2018-10-19
8-K 2018-10-19
8-K 2018-10-01
8-K 2018-09-18
8-K 2018-07-27
8-K 2018-07-24
8-K 2018-07-24
8-K 2018-07-02
8-K 2018-05-24
8-K 2018-04-27
8-K 2018-04-27
8-K 2018-04-23
8-K 2018-02-14
8-K 2018-02-14

IPG 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements (Unaudited)
Note 1: Basis of Presentation
Note 2: Revenue
Note 3: Debt and Credit Arrangements
Note 4: (Loss) Earnings per Share
Note 5: Supplementary Data
Note 6: Income Taxes
Note 7: Restructuring Charges
Note 8: Incentive Compensation Plans
Note 9: Accumulated Other Comprehensive Loss, Net of Tax
Note 10: Employee Benefits
Note 11: Segment Information
Note 12: Fair Value Measurements
Note 13: Commitments and Contingencies
Note 14: Recent Accounting Standards
Note 15: Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 5. Other Information
Item 6. Exhibits
EX-10.1 a101-ellenjohnsonemplo.htm
EX-10.2 a102-amendmentno1tothe.htm
EX-10.3 a103-amendmentno1tothe.htm
EX-31.1 ipgq2202010qex311.htm
EX-31.2 ipgq2202010qex312.htm
EX-32 ipgq2202010qex32.htm

Interpublic Group of Companies Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
2016128402012201420172020
Assets, Equity
2.92.31.71.10.5-0.12012201420172020
Rev, G Profit, Net Income
1.30.90.4-0.0-0.5-0.92012201420172020
Ops, Inv, Fin

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
or
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 1-6686
ipglogo2018a04.jpg
THE INTERPUBLIC GROUP OF COMPANIES, INC.
(Exact name of registrant as specified in its charter)
Delaware
 
13-1024020
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
909 Third Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
(212)704-1200
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.10 per share
IPG
The New York Stock Exchange
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 ý    No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý    No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
 
 
Accelerated Filer
 
Non-accelerated Filer
 
 
Smaller Reporting Company
 
 
 
 
 
Emerging Growth Company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No ý

The number of shares of the registrant’s common stock outstanding as of July 15, 2020 was 389,922,896.



INDEX
 
Page
Item 1.
 
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
 
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.

INFORMATION REGARDING FORWARD-LOOKING DISCLOSURE
This quarterly report on Form 10-Q contains forward-looking statements. Statements in this report that are not historical facts, including statements about management’s beliefs and expectations, constitute forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “would,” “estimate,” “continue” or comparable terminology are intended to identify forward-looking statements. These statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined under Item 1A, Risk Factors, in our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following:
the effects of a challenging economy on the demand for our advertising and marketing services, on our clients’ financial condition and on our business or financial condition;
the outbreak of the novel coronavirus (COVID-19), including the measures to contain its spread, and the impact on the economy and demand for our services, which may precipitate or exacerbate other risks and uncertainties;
our ability to attract new clients and retain existing clients;
our ability to retain and attract key employees;
risks associated with assumptions we make in connection with our critical accounting estimates, including changes in assumptions associated with any effects of a weakened economy;
potential adverse effects if we are required to recognize impairment charges or other adverse accounting-related developments;
risks associated with the effects of global, national and regional economic and political conditions, including counterparty risks and fluctuations in economic growth rates, interest rates and currency exchange rates;
developments from changes in the regulatory and legal environment for advertising and marketing and communications services companies around the world; and
failure to realize the anticipated benefits on the acquisition of the Acxiom business.
Investors should carefully consider these factors and the additional risk factors outlined in more detail under Item 1A, Risk Factors, in our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q.

1



PART I – FINANCIAL INFORMATION
Item 1.
Financial Statements (Unaudited)
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2020
 
2019
 
2020
 
2019
REVENUE:
 
 
 
 
 
 
 
Net revenue
$
1,853.4

 
$
2,125.9

 
$
3,825.5

 
$
4,130.7

Billable expenses
172.3

 
394.3

 
560.0

 
750.7

Total revenue
2,025.7

 
2,520.2

 
4,385.5

 
4,881.4

 
 
 
 
 
 
 
 
OPERATING EXPENSES:
 
 
 
 
 
 
 
Salaries and related expenses
1,306.1

 
1,381.2

 
2,728.9

 
2,802.3

Office and other direct expenses
317.0

 
387.3

 
695.2

 
776.5

Billable expenses
172.3

 
394.3

 
560.0

 
750.7

Cost of services
1,795.4

 
2,162.8

 
3,984.1

 
4,329.5

Selling, general and administrative expenses
4.1

 
18.1

 
26.5

 
59.5

Depreciation and amortization
73.1

 
73.0

 
145.9

 
144.1

Restructuring charges
112.6

 
2.1

 
112.6

 
33.9

Total operating expenses
1,985.2

 
2,256.0

 
4,269.1

 
4,567.0

 
 
 
 
 
 
 
 
OPERATING INCOME
40.5

 
264.2

 
116.4

 
314.4

 
 
 
 
 
 
 
 
EXPENSES AND OTHER INCOME:
 
 
 
 
 
 
 
Interest expense
(49.8
)
 
(51.6
)
 
(94.6
)
 
(101.4
)
Interest income
5.9

 
7.7

 
16.6

 
15.5

Other expense, net
(21.5
)
 
(3.8
)
 
(43.3
)
 
(10.7
)
Total (expenses) and other income
(65.4
)
 
(47.7
)
 
(121.3
)
 
(96.6
)
 
 
 
 
 
 
 
 
(Loss) Income before income taxes
(24.9
)
 
216.5

 
(4.9
)
 
217.8

Provision for income taxes
19.0

 
43.6

 
36.2

 
54.1

(Loss) Income of consolidated companies
(43.9
)
 
172.9

 
(41.1
)
 
163.7

Equity in net loss of unconsolidated affiliates
0.0

 
(0.1
)
 
(0.2
)
 
(0.4
)
NET (LOSS) INCOME
(43.9
)
 
172.8

 
(41.3
)
 
163.3

Net (income) loss attributable to noncontrolling interests
(1.7
)
 
(3.3
)
 
0.4

 
(1.8
)
NET (LOSS) INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS
$
(45.6
)
 
$
169.5

 
$
(40.9
)
 
$
161.5

 
 
 
 
 
 
 
 
(Loss) Earnings per share available to IPG common stockholders:
 
 
 
 
 
 
 
Basic
$
(0.12
)
 
$
0.44

 
$
(0.11
)
 
$
0.42

Diluted
$
(0.12
)
 
$
0.43

 
$
(0.11
)
 
$
0.41

 
 
 
 
 
 
 
 
Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
389.4

 
386.2

 
388.5

 
385.4

Diluted
389.4

 
391.2

 
388.5

 
390.1

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

2



THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in Millions)
(Unaudited)
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2020
 
2019
 
2020
 
2019
NET (LOSS) INCOME
$
(43.9
)
 
$
172.8

 
$
(41.3
)
 
$
163.3

 
 
 
 
 
 
 
 
OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
Foreign currency translation:
 
 
 
 
 
 
 
Foreign currency translation adjustments
42.8

 
4.2

 
(104.8
)
 
12.5

Reclassification adjustments recognized in net (loss) income
3.3

 
4.6

 
(0.3
)
 
5.8

 
46.1

 
8.8

 
(105.1
)
 
18.3

Derivative instruments:
 
 
 
 
 
 
 
Changes in fair value of derivative instruments
(0.5
)
 
0.0

 
(0.9
)
 
0.0

Recognition of previously unrealized losses in net (loss) income
0.6

 
0.6

 
1.2

 
1.2

Income tax effect
0.0

 
(0.1
)
 
(0.1
)
 
(0.2
)
 
0.1

 
0.5

 
0.2

 
1.0

Defined benefit pension and other postretirement plans:
 
 
 
 
 
 
 
Net actuarial gains for the period
2.2

 
0.7

 
2.2

 
0.7

Amortization of unrecognized losses, transition obligation and prior service cost included in net (loss) income
1.8

 
1.6

 
3.7

 
3.3

Other
(0.1
)
 
0.6

 
(1.4
)
 
0.3

Income tax effect
(0.9
)
 
(0.1
)
 
(1.2
)
 
(0.2
)
 
3.0

 
2.8

 
3.3

 
4.1

Other comprehensive income (loss), net of tax
49.2

 
12.1

 
(101.6
)
 
23.4

TOTAL COMPREHENSIVE INCOME (LOSS)
5.3

 
184.9

 
(142.9
)
 
186.7

Less: comprehensive income (loss) attributable to noncontrolling interests
1.3

 
3.6

 
(2.9
)
 
2.0

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO IPG
$
4.0

 
$
181.3

 
$
(140.0
)
 
$
184.7


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

3



THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in Millions)
(Unaudited)
 
June 30,
2020
 
December 31,
2019
ASSETS:
 
 
 
Cash and cash equivalents
$
1,085.4

 
$
1,192.2

Accounts receivable, net of allowance of $81.3 and $40.2, respectively
3,146.6

 
5,209.2

Accounts receivable, billable to clients
1,463.7

 
1,934.1

Assets held for sale
26.6

 
22.8

Other current assets
492.0

 
412.4

Total current assets
6,214.3

 
8,770.7

Property and equipment, net of accumulated depreciation and amortization of $1,163.7 and $1,116.4, respectively
717.8

 
778.1

Deferred income taxes
287.7

 
252.1

Goodwill
4,842.4

 
4,894.4

Other intangible assets
968.1

 
1,014.3

Operating lease right-of-use assets
1,435.8

 
1,574.4

Other non-current assets
430.8

 
467.9

TOTAL ASSETS
$
14,896.9

 
$
17,751.9

 
 
 
 
LIABILITIES:
 
 
 
Accounts payable
$
4,328.1

 
$
7,205.4

Accrued liabilities
599.3

 
742.8

Contract liabilities
557.6

 
585.6

Short-term borrowings
51.9

 
52.4

Current portion of long-term debt
503.0

 
502.0

Current portion of operating leases
258.5

 
267.2

Liabilities held for sale
68.1

 
65.0

Total current liabilities
6,366.5

 
9,420.4

Long-term debt
3,411.7

 
2,771.9

Non-current operating leases
1,347.7

 
1,429.6

Deferred compensation
375.5

 
425.0

Other non-current liabilities
749.2

 
714.7

TOTAL LIABILITIES
12,250.6

 
14,761.6

 
 
 
 
Redeemable noncontrolling interests (see Note 5)
155.2

 
164.7

 
 
 
 
STOCKHOLDERS’ EQUITY:
 
 
 
Common stock
38.9

 
38.7

Additional paid-in capital
996.3

 
977.3

Retained earnings
2,444.3

 
2,689.9

Accumulated other comprehensive loss, net of tax
(1,029.1
)
 
(930.0
)
Total IPG stockholders’ equity
2,450.4

 
2,775.9

Noncontrolling interests
40.7

 
49.7

TOTAL STOCKHOLDERS’ EQUITY
2,491.1

 
2,825.6

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
14,896.9

 
$
17,751.9

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

4



THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Millions)
(Unaudited)
 
Six months ended
June 30,
  
2020
 
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net (loss) income
$
(41.3
)
 
$
163.3

Adjustments to reconcile net (loss) income to net cash used in operating activities:
 
 
 
Depreciation and amortization
145.9

 
144.1

Provision for uncollectible receivables
39.4

 
6.7

Amortization of restricted stock and other non-cash compensation
35.8

 
44.1

Net amortization of bond discounts and deferred financing costs
5.3

 
4.6

Deferred income tax provision
(21.1
)
 
(3.0
)
Net losses on sales of businesses
43.2

 
11.8

Non-cash restructuring charges
67.6

 
11.7

Other
11.6

 
(1.0
)
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash:
 
 
 
Accounts receivable
1,871.2

 
743.3

Accounts receivable, billable to clients
418.9

 
(75.4
)
Other current assets
(75.0
)
 
(62.1
)
Accounts payable
(2,731.4
)
 
(676.9
)
Accrued liabilities
(109.4
)
 
(92.2
)
Contract liabilities
(10.8
)
 
50.2

Other non-current assets and liabilities
(14.1
)
 
(70.2
)
Net cash (used in) provided by operating activities
(364.2
)
 
199.0

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Capital expenditures
(71.9
)
 
(80.1
)
Acquisitions, net of cash acquired
(2.5
)
 
(0.6
)
Other investing activities
(18.9
)
 
2.8

Net cash used in investing activities
(93.3
)
 
(77.9
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Proceeds from long-term debt
646.2

 
0.0

Net increase in short-term borrowings
2.5

 
132.3

Exercise of stock options
0.0

 
0.6

Common stock dividends
(199.2
)
 
(181.4
)
Acquisition-related payments
(32.3
)
 
(13.0
)
Tax payments for employee shares withheld
(21.8
)
 
(22.0
)
Distributions to noncontrolling interests
(9.4
)
 
(8.1
)
Repayment of long-term debt
(0.1
)
 
(100.1
)
Other financing activities
(8.2
)
 
0.0

Net cash provided by (used in) financing activities
377.7

 
(191.7
)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
(28.9
)
 
10.3

Net decrease in cash, cash equivalents and restricted cash
(108.7
)
 
(60.3
)
Cash, cash equivalents and restricted cash at beginning of period
1,195.7

 
677.2

Cash, cash equivalents and restricted cash at end of period
$
1,087.0

 
$
616.9

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

5



THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Amounts in Millions)
(Unaudited)
 
 
Common Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Accumulated 
Other
Comprehensive
Loss, Net of Tax
 
Total IPG
Stockholders’
Equity
 
Noncontrolling
Interests
 
Total
Stockholders’
Equity
 
Shares
 
Amount
 
Balance at March 31, 2020
389.5

 
$
38.9

 
$
981.2

 
$
2,591.1

 
$
(1,078.7
)
 
$
2,532.5

 
$
42.7

 
$
2,575.2

Net (loss) income
 
 
 
 
 
 
(45.6
)
 
 
 
(45.6
)
 
1.7

 
(43.9
)
Other comprehensive income (loss)
 
 
 
 
 
 
 
 
49.6

 
49.6

 
(0.4
)
 
49.2

Reclassifications related to redeemable noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
0.2

 
0.2

Distributions to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
(3.8
)
 
(3.8
)
Change in redemption value of redeemable noncontrolling interests
 
 
 
 
 
 

 
 
 

 
 
 

Common stock dividends ($0.255 per share)
 
 
 
 
 
 
(101.2
)
 
 
 
(101.2
)
 
 
 
(101.2
)
Stock-based compensation
0.2

 
0.1

 
15.5

 
 
 
 
 
15.6

 
 
 
15.6

Exercise of stock options
0.0

 
0.0

 
0.2

 
 
 
 
 
0.2

 
 
 
0.2

Shares withheld for taxes
(0.1
)
 
(0.1
)
 
(0.6
)
 
 
 
 
 
(0.7
)
 
 
 
(0.7
)
Other
 
 
 
 
 
 
 
 
 
 
 
 
0.3

 
0.3

Balance at June 30, 2020
389.6

 
$
38.9

 
$
996.3

 
$
2,444.3

 
$
(1,029.1
)
 
$
2,450.4

 
$
40.7

 
$
2,491.1


 
 
Common Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Accumulated 
Other
Comprehensive
Loss, Net of Tax
 
Total IPG
Stockholders’
Equity
 
Noncontrolling
Interests
 
Total
Stockholders’
Equity
 
Shares
 
Amount
 
Balance at December 31, 2019
387.0

 
$
38.7

 
$
977.3

 
$
2,689.9

 
$
(930.0
)
 
$
2,775.9

 
$
49.7

 
$
2,825.6

Cumulative effect of accounting change
 
 
 
 
 
 
(6.6
)
 
 
 
(6.6
)
 
 
 
(6.6
)
Net loss
 
 
 
 
 
 
(40.9
)
 
 
 
(40.9
)
 
(0.4
)
 
(41.3
)
Other comprehensive loss
 
 
 
 
 
 
 
 
(99.1
)
 
(99.1
)
 
(2.5
)
 
(101.6
)
Reclassifications related to redeemable noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
3.0

 
3.0

Distributions to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
(9.4
)
 
(9.4
)
Change in redemption value of redeemable noncontrolling interests
 
 
 
 
 
 
3.1

 
 
 
3.1

 
 
 
3.1

Common stock dividends ($0.510 per share)
 
 
 
 
 
 
(201.2
)
 
 
 
(201.2
)
 
 
 
(201.2
)
Stock-based compensation
3.6

 
0.4

 
40.6

 
 
 
 
 
41.0

 
 
 
41.0

Exercise of stock options
0.0

 
0.0

 
0.4

 
 
 
 
 
0.4

 
 
 
0.4

Shares withheld for taxes
(1.0
)
 
(0.2
)
 
(22.0
)
 
 
 
 
 
(22.2
)
 
 
 
(22.2
)
Other
 
 
 
 
 
 
 
 
 
 
 
 
0.3

 
0.3

Balance at June 30, 2020
389.6

 
$
38.9

 
$
996.3

 
$
2,444.3

 
$
(1,029.1
)
 
$
2,450.4

 
$
40.7

 
$
2,491.1


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


6



THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Amounts in Millions)
(Unaudited)
 
 
Common Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Accumulated 
Other
Comprehensive
Loss, Net of Tax
 
Total IPG
Stockholders’
Equity
 
Noncontrolling
Interests
 
Total
Stockholders’
Equity
 
Shares
 
Amount
 
Balance at March 31, 2019
386.2

 
$
38.6

 
$
903.3

 
$
2,303.1

 
$
(929.7
)
 
$
2,315.3

 
$
39.3

 
$
2,354.6

Net income
 
 
 
 
 
 
169.5

 
 
 
169.5

 
3.3

 
172.8

Other comprehensive income
 
 
 
 
 
 
 
 
11.8

 
11.8

 
0.3

 
12.1

Reclassifications related to redeemable noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
(3.0
)
 
(3.0
)
Distributions to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
(5.6
)
 
(5.6
)
Change in redemption value of redeemable noncontrolling interests
 
 
 
 


 
1.1

 
 
 
1.1

 
 
 
1.1

Common stock dividends ($0.235 per share)
 
 
 
 
 
 
(90.8
)
 
 
 
(90.8
)
 
 
 
(90.8
)
Stock-based compensation
0.2

 
0.1

 
18.3

 
 
 
 
 
18.4

 
 
 
18.4

Exercise of stock options
0.1

 
0.0

 
0.0

 
 
 
 
 
0.0

 
 
 
0.0

Shares withheld for taxes
(0.1
)
 
(0.1
)
 
(0.2
)
 
 
 
 
 
(0.3
)
 
 
 
(0.3
)
Other
 
 
 
 
0.0

 
(1.1
)
 
 
 
(1.1
)
 
0.2

 
(0.9
)
Balance at June 30, 2019
386.4

 
$
38.6

 
$
921.4

 
$
2,381.8

 
$
(917.9
)
 
$
2,423.9

 
$
34.5

 
$
2,458.4


 
Common Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Accumulated 
Other
Comprehensive
Loss, Net of Tax
 
Total IPG
Stockholders’
Equity
 
Noncontrolling
Interests
 
Total
Stockholders’
Equity
 
Shares
 
Amount
 
Balance at December 31, 2018
383.6

 
$
38.3

 
$
895.9

 
$
2,400.1

 
$
(941.1
)
 
$
2,393.2

 
$
39.6

 
$
2,432.8

Cumulative effect of accounting change
 
 
 
 
 
 
2.2

 
 
 
2.2

 
 
 
2.2

Net income
 
 
 
 
 
 
161.5

 
 
 
161.5

 
1.8

 
163.3

Other comprehensive income
 
 
 
 
 
 
 
 
23.2

 
23.2

 
0.2

 
23.4

Reclassifications related to redeemable noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
(0.4
)
 
(0.4
)
Distributions to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
(8.1
)
 
(8.1
)
Change in redemption value of redeemable noncontrolling interests
 
 
 
 


 
1.4

 
 
 
1.4

 
 
 
1.4

Common stock dividends ($0.470 per share)
 
 
 
 
 
 
(181.4
)
 
 
 
(181.4
)
 
 
 
(181.4
)
Stock-based compensation
3.6

 
0.4

 
48.1

 
 
 
 
 
48.5

 
 
 
48.5

Exercise of stock options
0.1

 
0.0

 
0.6