Early Extinguishment of long-term debt

  
[Table of Contents](#i7b123d2c40e141848818780e535fa94e_7) THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in Millions) (Unaudited)

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | Nine months ended September 30, |
|    | 2022 |  | 2021 |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |
| Net income | $ | 650.2  |  |  | $ | 604.8  |  |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: |  |  |  |
| Depreciation and amortization | 201.9  |  |  | 208.7  |  |
| Amortization of restricted stock and other non-cash compensation | 38.0  |  |  | 57.9  |  |
| Deferred income tax | 26.0  |  |  | 34.6  |  |
| Net losses on sales of businesses | 4.0  |  |  | 18.6  |  |
| Net amortization of bond discounts and deferred financing costs | 2.2  |  |  | 4.8  |  |
| Loss on early extinguishment of debt | —  |  |  | 74.0  |  |
| Provision for uncollectible receivables | (5.2) |  |  | (6.3) |  |
|  |  |  |  |
| Other | 0.5  |  |  | 1.9  |  |
| Changes in assets and liabilities, net of acquisitions and divestitures, provided (using) cash: |  |  |  |
| Accounts receivable | 725.6  |  |  | 511.5  |  |
| Accounts receivable, billable to clients | 38.4  |  |  | (367.3) |  |
| Other current assets | (94.7) |  |  | (66.3) |  |
| Accounts payable | (1,982.4) |  |  | (302.1) |  |
| Accrued liabilities | (232.0) |  |  | (65.2) |  |
| Contract liabilities | 21.5  |  |  | (26.3) |  |
| Other non-current assets and liabilities | (52.8) |  |  | (74.7) |  |
| Net cash (used in) provided by operating activities | (658.8) |  |  | 608.6  |  |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |
| Capital expenditures | (118.5) |  |  | (123.4) |  |
| Deconsolidation of a subsidiary | (20.4) |  |  | (16.3) |  |
|  |  |  |  |
| Net proceeds from investments  | 2.6  |  |  | 32.7  |  |
| Other investing activities | 10.1  |  |  | (8.1) |  |
| Net cash used in investing activities | (126.2) |  |  | (115.1) |  |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |
| Common stock dividends | (345.1) |  |  | (321.4) |  |
| Repurchases of common stock | (221.6) |  |  | —  |  |
| Tax payments for employee shares withheld  | (39.9) |  |  | (25.0) |  |
| Net decrease in short-term borrowings | (27.8) |  |  | (9.4) |  |
| Distributions to non-controlling interests | (9.6) |  |  | (9.0) |  |
| Acquisition-related payments | (8.4) |  |  | (28.0) |  |
| Proceeds from long-term debt | 0.0  |  |  | 998.1  |  |
| Exercise of stock options | 0.0  |  |  | 8.0  |  |
| Early extinguishment of long-term debt | —  |  |  | (1,066.8) |  |
| Other financing activities | (0.5) |  |  | (14.3) |  |
| Net cash used in financing activities | (652.9) |  |  | (467.8) |  |
| Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (59.2) |  |  | (40.3) |  |
| Net decrease in cash, cash equivalents and restricted cash | (1,497.1) |  |  | (14.6) |  |
| Cash, cash equivalents and restricted cash at beginning of period | 3,272.2  |  |  | 2,511.5  |  |
| Cash, cash equivalents and restricted cash at end of period | $ | 1,775.1  |  |  | $ | 2,496.9  |  |

The accompanying notes are an integral part of these unaudited financial statements.6
