Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Consolidated Statement of Operations

CONSOLIDATED STATEMENT OF OPERATIONS

	Three months ended September 30, 2017								Nine months ended September 30, 2017
	As Revised 1			ASC 606 Adjustments		As Adjusted			As Revised 1			ASC 606 Adjustments		As Adjusted
REVENUE:
Net revenue	$	1,796.6		$	35.9	$	1,832.5		$	5,282.3		$	60.1	$	5,342.4
Billable expenses	106.0			269.7		375.7			259.1			856.3		1,115.4
Total revenue	1,902.6			305.6		2,208.2			5,541.4			916.4		6,457.8
OPERATING EXPENSES:
Salaries and related expenses	1,218.8			—		1,218.8			3,699.4			—		3,699.4
Office and other direct expenses	302.9			—		302.9			934.0			—		934.0
Billable expenses	106.0			269.7		375.7			259.1			856.3		1,115.4
Cost of services	1,627.7			269.7		1,897.4			4,892.5			856.3		5,748.8
Selling, general and administrative expenses	13.6			—		13.6			69.1			—		69.1
Depreciation and amortization	42.2			—		42.2			124.5			—		124.5
Total operating expenses	1,683.5			269.7		1,953.2			5,086.1			856.3		5,942.4
OPERATING INCOME	219.1			35.9		255.0			455.3			60.1		515.4
EXPENSES AND OTHER INCOME:
Interest expense	(21.0		)	—		(21.0		)	(67.6		)	—		(67.6		)
Interest income	4.1			—		4.1			14.0			—		14.0
Other expense, net	(9.9		)	—		(9.9		)	(24.5		)	—		(24.5		)
Total (expenses) and other income	(26.8		)	—		(26.8		)	(78.1		)	—		(78.1		)
Income before income taxes	192.3			35.9		228.2			377.2			60.1		437.3
Provision for income taxes	42.5			12.4		54.9			115.8			20.4		136.2
Income of consolidated companies	149.8			23.5		173.3			261.4			39.7		301.1
Equity in net (loss) income of unconsolidated affiliates	(1.0		)	—		(1.0		)	0.1			—		0.1
NET INCOME	148.8			23.5		172.3			261.5			39.7		301.2
Net (income) loss attributable to noncontrolling interests	(2.6		)	—		(2.6		)	0.9			—		0.9
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS	$	146.2		$	23.5	$	169.7		$	262.4		$	39.7	$	302.1
Earnings per share available to IPG common stockholders:
Basic	$	0.38		$	0.06	$	0.44		$	0.67		$	0.10	$	0.77
Diluted	$	0.37		$	0.06	$	0.43		$	0.66		$	0.10	$	0.76
Weighted-average number of common shares outstanding:
Basic	389.5			—		389.5			391.2			—		391.2
Diluted	397.2			—		397.2			398.6			—		398.6
Dividends declared per common share	$	0.18				$	0.18		$	0.54				$	0.54

1 These amounts have been revised for the new presentation as described in Note 1.

Condensed Balance Sheet

CONSOLIDATED BALANCE SHEET

	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

	Nine months ended September 30, 2017
	As Reported			ASC 606 Adjustments			As Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	261.5		$	39.7		$	301.2
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	124.5			—			124.5
Provision for uncollectible receivables	9.5			—			9.5
Amortization of restricted stock and other non-cash compensation	59.8			—			59.8
Net amortization of bond discounts and deferred financing costs	4.2			—			4.2
Deferred income tax provision	(1.6		)	20.4			18.8
Net losses on sales of businesses	20.9			—			20.9
Other	16.1			—			16.1
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash:
Accounts receivable	875.8			—			875.8
Expenditures billable to clients	(165.9		)	165.9			—
Accounts receivable, billable to clients	—			(166.9		)	(166.9		)
Other current assets	(48.2		)	(15.7		)	(63.9		)
Accounts payable	(986.4		)	24.7			(961.7		)
Accrued liabilities	(287.8		)	—			(287.8		)
Contract liabilities	—			(68.1		)	(68.1		)
Other non-current assets and liabilities	(21.4		)	—			(21.4		)
Net cash used in operating activities	(139.0		)	—			(139.0		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used in investing activities	(140.5		)	—			(140.5		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash used in financing activities	(113.1		)	—			(113.1		)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	0.4			—			0.4
Net decrease in cash, cash equivalents and restricted cash	(392.2		)	—			(392.2		)
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	$	708.0		$	—		$	708.0

Disaggregation of Revenue Principal Geographic Markets

	Three months ended September 30,				Nine months ended September 30,
Total revenue:	2018		2017		2018		2017
United States	$	1,407.1	$	1,340.8	$	4,203.5	$	4,006.8
International:
United Kingdom	220.9		201.7		626.9		542.7
Continental Europe	177.5		171.6		564.3		506.1
Asia Pacific	267.3		259.9		803.0		740.7
Latin America	95.3		94.9		267.8		265.2
Other	129.4		139.3		392.9		396.3
Total International	890.4		867.4		2,654.9		2,451.0
Total Consolidated	$	2,297.5	$	2,208.2	$	6,858.4	$	6,457.8

	Three months ended September 30,				Nine months ended September 30,
Net revenue:	2018		2017		2018		2017
United States	$	1,160.9	$	1,109.6	$	3,424.7	$	3,294.3
International:
United Kingdom	174.0		160.0		513.2		436.9
Continental Europe	152.0		150.7		489.4		446.2
Asia Pacific	210.6		203.7		603.6		582.7
Latin America	84.0		86.9		239.9		241.6
Other	114.2		121.6		347.1		340.7
Total International	734.8		722.9		2,193.2		2,048.1
Total Consolidated	$	1,895.7	$	1,832.5	$	5,617.9	$	5,342.4

IAN	Three months ended September 30,				Nine months ended September 30,
Total revenue:	2018		2017		2018		2017
United States	$	1,064.2	$	1,006.2	$	3,150.6	$	2,998.4
International	710.5		696.6		2,122.1		1,983.5
Total IAN	$	1,774.7	$	1,702.8	$	5,272.7	$	4,981.9
Net revenue:
United States	$	952.9	$	913.1	$	2,814.2	$	2,701.4
International	627.6		618.3		1,876.7		1,755.1
Total IAN	$	1,580.5	$	1,531.4	$	4,690.9	$	4,456.5

CMG	Three months ended September 30,				Nine months ended September 30,
Total revenue:	2018		2017		2018		2017
United States	$	342.9	$	334.6	$	1,052.9	$	1,008.4
International	179.9		170.8		532.8		467.5
Total CMG	$	522.8	$	505.4	$	1,585.7	$	1,475.9
Net revenue:
United States	$	208.0	$	196.5	$	610.5	$	592.9
International	107.2		104.6		316.5		293.0
Total CMG	$	315.2	$	301.1	$	927.0	$	885.9

Contract Balances

	September 30, 2018		December 31, 2017
Accounts receivable, net of allowance of $46.5 and $42.7, respectively	$	4,009.1	$	4,585.0
Accounts receivable, billable to clients	1,995.9		1,747.4
Contract assets	57.8		11.5
Contract liabilities (deferred revenue)	514.4		484.7