Acquisitions (Notes)

9 Months Ended

Sep. 30, 2011

Business Combinations [Abstract]

Acquisitions

Acquisitions

We continue to evaluate strategic opportunities to grow and to increase our ownership interests in current investments, particularly in our digital and marketing services offerings, and to expand our presence in high-growth and key strategic world markets. Our acquisitions typically provide for an initial payment at the time of closing, and certain of these acquisitions include additional contingent purchase payments based on the future performance of the acquired entity. Due to the characteristics of advertising, specialized marketing and communication services companies, our acquisitions typically do not have significant amounts of tangible assets, as the principal asset we typically acquire is creative talent. As a result, a substantial portion of the purchase price of these acquisitions is allocated to identifiable intangible assets, primarily customer lists and trade names, and goodwill.

During the first nine months of 2011, we completed fifteen acquisitions, which included a public relations company in Brazil, digital marketing agencies in Australia and the United Kingdom, and a social media agency in the United States. Of our fifteen acquisitions, thirteen are included in the Integrated Agency Networks (“IAN”) operating segment and two are included in the Constituency Management Group (“CMG”) operating segment. During the first nine months of 2011, we recorded approximately $75.0 of goodwill and intangible assets related to these acquisitions during this period.

During the first nine months of 2010, we completed five acquisitions, which included a premier full-service communications agency in the United Kingdom and a media and digital marketing service company in Brazil. Of our five acquisitions, four were included in the IAN operating segment and one was included in the CMG operating segment. During the first nine months of 2010, we recorded approximately $58.0 of goodwill and intangible assets related to these acquisitions during this period.

The results of operations of our acquired companies were included in our consolidated results from the closing date of each acquisition. Details of cash paid for current and prior years' acquisitions are listed below.

	Nine months ended September 30,
	2011			2010
Cost of investment - current year acquisitions	$	23.0		$	47.1
Cost of investment - prior year acquisitions	103.6			47.1
Less: net cash acquired	(5.9		)	(5.4		)
Total cost of investment 1	120.7			88.8
Operating expense 2	0.2			3.0
Total cash paid for acquisitions	$	120.9		$	91.8

¹  Of the total cash paid, $70.4 and $25.8 for the nine months endedSeptember 30, 2011 and 2010, respectively, are classified under the financing section of the unaudited Consolidated Statements of Cash Flows within acquisition-related payments. These transactions relate to increases in our ownership interests in our consolidated subsidiaries as well as deferred payments for acquisitions that closed on or after January 1, 2009. Of the total cash paid, $50.3 and $63.0 for the nine months endedSeptember 30, 2011 and 2010, respectively, are classified under the investing section of the unaudited Consolidated Statements of Cash Flows within acquisitions, including deferred payments, net of cash acquired. These transactions relate to initial payments for new transactions and deferred payments for acquisitions that closed prior to January 1, 2009.

²  Represents cash payments made that were either in excess of the contractual value or contingent upon the future employment of the former owners of acquired companies.

Many of our acquisitions also include provisions under which the noncontrolling equity owners can require us to purchase additional interests in a subsidiary at their discretion. The following table presents changes in our redeemable noncontrolling interests.

	Nine months ended September 30,
	2011			2010
Balance at beginning of period	$	291.2		$	277.8
Change in related noncontrolling interest balance	(15.8		)	(18.6		)
Changes in redemption value of redeemable noncontrolling interests:
Additions	5.8			31.7
Redemptions and reclassifications	(43.5		)	(28.5		)
Redemption value adjustments 1	20.0			7.1
Balance at end of period	$	257.7		$	269.5

¹  Redeemable noncontrolling interests are reported at their estimated redemption value in each reporting period, but not less than their initial fair value. Any adjustment to the redemption value impacts additional paid-in capital, except adjustments as a result of currency translation.