Segment Information (Notes)

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

As of December 31, 2013, we have two reportable segments, which are IAN and CMG. IAN is comprised of McCann Worldgroup, Draftfcb, Lowe & Partners, IPG Mediabrands, our digital specialist agencies, and our domestic integrated agencies. CMG is comprised of a number of our specialist marketing services offerings. We also report results for the “Corporate and other” group.

Within IAN, our agencies provide a comprehensive array of global communications and marketing services, each offering a distinctive range of solutions for our clients. Our digital specialist agencies provide unique digital capabilities and service their own client rosters while also serving as key digital partners. In addition, our domestic integrated agencies, including Hill Holliday, Carmichael Lynch and Mullen, provide a full range of advertising, marketing communications services and/or marketing services and partner with our global operating divisions as needed. IAN’s operating divisions share similar economic characteristics and are similar in other areas, specifically related to the nature of their services, the manner in which the services are provided and the similarity of their respective customers.

CMG, which includes Weber Shandwick, FutureBrand, DeVries, GolinHarris, Jack Morton, and Octagon Worldwide, provides clients with diversified services, including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity and strategic marketing consulting. CMG shares some similarities with service lines offered by IAN; however, on an aggregate basis, CMG has a higher proportion of arrangements for which they act as principal, a different distribution model than IAN and different margin structure.

The profitability measure employed by our chief operating decision maker for allocating resources to operating divisions and assessing operating division performance is operating income, excluding the impact of restructuring and other reorganization-related charges (reversals), net. With the exception of excluding these amounts from reportable segment operating income, all segments follow the same accounting policies as those described in Note 1.

Certain corporate and other charges are reported as a separate line item within total segment operating income and include corporate office expenses, as well as shared service center expenses and certain other centrally managed expenses that are not fully allocated to operating divisions. Salaries and related expenses include salaries, long-term incentive awards, annual bonuses and other miscellaneous benefits for corporate office employees. Office and general expenses primarily include professional fees related to internal control compliance, financial statement audits and legal, information technology and other consulting services, which are engaged and managed through the corporate office. In addition, office and general expenses includes rental expense and depreciation of leasehold improvements for properties occupied by corporate office employees. A portion of centrally managed expenses are allocated to operating divisions based on a formula that uses the planned revenues of each of the operating units. Amounts allocated also include specific charges for information technology-related projects, which are allocated based on utilization.

Summarized financial information concerning our reportable segments is shown in the following table.

	Years ended December 31,
	2013			2012			2011
Revenue:
IAN	$	5,795.6		$	5,728.5		$	5,891.8
CMG	1,326.7			1,227.7			1,122.8
Total	$	7,122.3		$	6,956.2		$	7,014.6
Segment operating income:
IAN	$	662.1		$	700.2		$	728.8
CMG	137.6			114.2			101.4
Corporate and other	(140.8		)	(137.3		)	(142.0		)
Total	658.9			677.1			688.2
Restructuring and other reorganization-related (charges) reversals, net	(60.6		)	1.2			(1.0		)
Interest expense	(122.7		)	(133.5		)	(136.8		)
Interest income	24.7			29.5			37.8
Other (expense) income, net	(32.3		)	100.5			150.2
Income before income taxes	$	468.0		$	674.8		$	738.4
Depreciation and amortization of fixed assets and intangible assets:
IAN	$	126.0		$	119.7		$	125.7
CMG	15.6			14.4			12.8
Corporate and other	15.8			13.6			12.4
Total	$	157.4		$	147.7		$	150.9
Capital expenditures:
IAN	$	109.0		$	97.5		$	94.1
CMG	18.5			26.7			16.9
Corporate and other	45.5			45.0			29.3
Total	$	173.0		$	169.2		$	140.3
	December 31,
	2013			2012
Total assets:
IAN	$	11,425.1		$	11,035.3
CMG	1,203.8			1,073.1
Corporate and other	276.1			1,385.5
Total	$	12,905.0		$	13,493.9

Revenue and long-lived assets, excluding intangible assets, are presented by major geographic area in the following table.

	Revenue						Long-Lived Assets
	Years ended December 31,						December 31,
	2013		2012		2011		2013		2012
Domestic	$	3,972.6	$	3,803.6	$	3,887.7	$	545.7	$	502.5
International:
United Kingdom	568.3		572.0		539.4		60.8		64.3
Continental Europe	800.6		823.1		908.9		79.6		76.0
Asia Pacific	868.9		838.1		741.7		88.8		88.0
Latin America	464.5		450.1		444.4		72.3		70.5
Other	447.4		469.3		492.5		37.1		38.8
Total International	3,149.7		3,152.6		3,126.9		338.6		337.6
Total Consolidated	$	7,122.3	$	6,956.2	$	7,014.6	$	884.3	$	840.1

Revenue is primarily attributed to geographic areas based on where the services are performed. Furniture, equipment and leasehold improvements are allocated based upon physical location. Other assets and investments are allocated based on the location of the related operations.