Revenue (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)



	Three months ended March 31, 2017
	As Revised ¹			ASC 606 Adjustments		As Adjusted
REVENUE:
Net revenue	$	1,670.3		$	5.0	$	1,675.3
Billable expenses	83.6			304.9		388.5
Total revenue	1,753.9			309.9		2,063.8

OPERATING EXPENSES:
Salaries and related expenses	1,251.7			—		1,251.7
Office and other direct expenses	312.7			—		312.7
Billable expenses	83.6			304.9		388.5
Cost of services	1,648.0			304.9		1,952.9
Selling, general and administrative expenses	35.2			—		35.2
Depreciation and amortization	41.0			—		41.0
Total operating expenses	1,724.2			304.9		2,029.1

OPERATING INCOME	29.7			5.0		34.7

EXPENSES AND OTHER INCOME:
Interest expense	(20.9		)	—		(20.9		)
Interest income	5.2			—		5.2
Other income, net	0.8			—		0.8
Total (expenses) and other income	(14.9		)	—		(14.9		)

Income before income taxes	14.8			5.0		19.8
Benefit of income taxes	(2.1		)	1.8		(0.3		)
Income of consolidated companies	16.9			3.2		20.1
Equity in net income of unconsolidated affiliates	1.2			—		1.2
NET INCOME	18.1			3.2		21.3
Net loss attributable to noncontrolling interests	3.4			—		3.4
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS	$	21.5		$	3.2	$	24.7

Earnings per share available to IPG common stockholders:
Basic	$	0.05		$	0.01	$	0.06
Diluted	$	0.05		$	0.01	$	0.06

Weighted-average number of common shares outstanding:
Basic	391.7			—		391.7
Diluted	399.3			—		399.3

Dividends declared per common share	$	0.18				$	0.18

Condensed Balance Sheet

CONSOLIDATED BALANCE SHEET

(Unaudited)



	December 31, 2017
	As Reported			ASC 606 Adjustments			As Adjusted
ASSETS:
Cash and cash equivalents	$	790.9		$	—		$	790.9
Accounts receivable, net of allowance of $42.7	4,585.0			—			4,585.0
Expenditures billable to clients	1,747.4			(1,747.4		)	—
Accounts receivable, billable to clients	—			1,747.4			1,747.4
Assets held for sale	5.7			—			5.7
Other current assets	335.1			11.4			346.5
Total current assets	7,464.1			11.4			7,475.5
Property and equipment, net of accumulated depreciation of $1,036.2	650.4			—			650.4
Deferred income taxes	236.0			(2.0		)	234.0
Goodwill	3,820.4			—			3,820.4
Other non-current assets	524.3			0.1			524.4
TOTAL ASSETS	$	12,695.2		$	9.5		$	12,704.7

LIABILITIES:
Accounts payable	$	6,907.8		$	(487.6	)	$	6,420.2
Accrued liabilities	674.7			—			674.7
Contract liabilities	—			484.7			484.7
Short-term borrowings	84.9			—			84.9
Current portion of long-term debt	2.0			—			2.0
Liabilities held for sale	8.8			—			8.8
Total current liabilities	7,678.2			(2.9		)	7,675.3
Long-term debt	1,285.6			—			1,285.6
Deferred compensation	476.6			—			476.6
Other non-current liabilities	766.9			1.9			768.8
TOTAL LIABILITIES	10,207.3			(1.0		)	10,206.3

Redeemable noncontrolling interests	252.1			—			252.1

STOCKHOLDERS’ EQUITY:
Common stock	38.6			—			38.6
Additional paid-in capital	955.2			—			955.2
Retained earnings	2,093.6			10.9			2,104.5
Accumulated other comprehensive loss, net of tax	(827.4		)	(0.4		)	(827.8		)
	2,260.0			10.5			2,270.5
Less: Treasury stock	(59.0		)	—			(59.0		)
Total IPG stockholders’ equity	2,201.0			10.5			2,211.5
Noncontrolling interests	34.8			—			34.8
TOTAL STOCKHOLDERS’ EQUITY	2,235.8			10.5			2,246.3
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	12,695.2		$	9.5		$	12,704.7

Condensed Statements of Cash Flows

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)



	Three months ended March 31, 2017
	As Reported			ASC 606 Adjustments		As Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	18.1		3.2		$	21.3
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	41.0			—		41.0
Provision for uncollectible receivables	5.9			—		5.9
Amortization of restricted stock and other non-cash compensation	29.7			—		29.7
Net amortization of bond discounts and deferred financing costs	1.4			—		1.4
Deferred income tax benefit	(13.8		)	1.8		(12.0		)
Net gains on sales of businesses	(0.9		)	—		(0.9		)
Other	6.7			—		6.7
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash:
Accounts receivable	806.6			—		806.6
Expenditures billable to clients	(206.3		)	206.3		—
Accounts receivable, billable to clients	—			(206.5	)	(206.5		)
Other current assets	(71.6		)	3.0		(68.6		)
Accounts payable	(702.5		)	(24.0	)	(726.5		)
Accrued liabilities	(264.9		)	—		(264.9		)
Contract liabilities	—			16.2		16.2
Other non-current assets and liabilities	(21.2		)	—		(21.2		)
Net cash used in operating activities	(371.8		)	—		(371.8		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used in investing activities	(33.2		)	—		(33.2		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash provided by financing activities	64.4			—		64.4
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	20.0			—		20.0
Net decrease in cash, cash equivalents and restricted cash	(320.6		)	—		(320.6		)
Cash, cash equivalents and restricted cash at beginning of period	1,100.2			—		1,100.2
Cash, cash equivalents and restricted cash at end of period	$	779.6		—		$	779.6

Disaggregation of Revenue Principal Activities

Disaggregation of Revenue Principal Geographic Markets



	Three months ended March 31,
Total revenue:	2018		2017
United States	$	1,350.7	$	1,315.2
International:
United Kingdom	204.4		175.0
Continental Europe	181.7		158.2
Asia Pacific	231.5		220.3
Latin America	80.0		75.8
Other	120.8		119.3
Total International	818.4		748.6
Total Consolidated	$	2,169.1	$	2,063.8



	Three months ended March 31,
Net revenue:	2018		2017
United States	$	1,092.3	$	1,057.1
International:
United Kingdom	163.5		135.2
Continental Europe	158.7		140.9
Asia Pacific	178.8		173.7
Latin America	73.9		69.0
Other	106.8		99.4
Total International	681.7		618.2
Total Consolidated	$	1,774.0	$	1,675.3



IAN	Three months ended March 31,
Total revenue:	2018		2017
United States	$	1,023.2	$	969.9
International	662.3		597.9
Total IAN	$	1,685.5	$	1,567.8

Net revenue:
United States	$	898.0	$	862.0
International	583.3		529.1
Total IAN	$	1,481.3	$	1,391.1



CMG	Three months ended March 31,
Total revenue:	2018		2017
United States	$	327.5	$	345.3
International	156.1		150.7
Total CMG	$	483.6	$	496.0

Net revenue:
United States	$	194.3	$	195.1
International	98.4		89.1
Total CMG	$	292.7	$	284.2

Contract Balances



	March 31, 2018		December 31, 2017
Accounts receivable, net of allowance of $43.1 and $42.7, respectively	$	3,942.5	$	4,585.0
Accounts receivable, billable to clients	1,981.1		1,747.4
Contract assets	26.6		11.5
Contract liabilities (deferred revenue)	507.5		484.7