Segment Information (Notes)

12 Months Ended

Dec. 31, 2019

As of December 31, 2019, we have two reportable segments: IAN and CMG. IAN is comprised of McCann Worldgroup, Foote, Cone & Belding ("FCB"), MullenLowe Group, Media, Data and Technology which includes IPG Mediabrands and Acxiom, 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 range of solutions for our clients. Our digital specialist agencies, including R/GA and Huge, provide digital capabilities and serve as key digital partners. In addition, our domestic integrated agencies, including Hill Holliday, Deutsch, Carmichael Lynch and Tierney, provide a full range of advertising, marketing communications services and/or marketing services and partner with our global operating divisions as needed. Media, Data and Technology offerings provide strategic media planning and buying services as well as data management and leading marketing technology services. 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, DeVries, Golin, FutureBrand, 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.

Beginning in the first quarter of 2019, Acxiom's results are presented in IAN and the profitability measure employed by our chief operating decision maker for allocating resources to operating divisions and assessing operating division performance is segment EBITA. All segments follow the same accounting policies as those described in Note 1.

Corporate and other is primarily comprised of selling, general and administrative expenses. Selling, general and administrative expenses includes corporate office expenses as well as shared service center and certain other centrally managed expenses that are not fully allocated to operating divisions; salaries, long-term incentives, annual bonuses and other miscellaneous benefits for corporate office employees; professional fees related to internal control compliance, financial statement audits and legal, information technology and other consulting services that are engaged and managed through the corporate office; and rental expense for properties occupied by corporate office employees. A portion of centrally managed expenses is 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 tables.



	Years ended December 31,
	2019			2018			2017
Total Revenue:
IAN	$	8,026.4		$	7,556.1		$	7,009.6
CMG	2,194.9			2,158.3			2,038.0
Total	$	10,221.3		$	9,714.4		$	9,047.6

Net revenue:
IAN	$	7,348.2		$	6,767.5		$	6,266.7
CMG	1,276.9			1,264.1			1,206.8
Total	$	8,625.1		$	8,031.6		$	7,473.5

Segment EBITA:
IAN	$	1,110.4		$	1,042.1		$	891.7
CMG	163.4			180.3			194.4
Corporate and other	(101.8		)	(176.0		)	(126.6		)
Total	$	1,172.0		$	1,046.4		$	959.5

Amortization of acquired intangibles:
IAN	$	81.6		$	32.3		$	16.6
CMG	4.4			5.3			4.5
Corporate and other	0.0			0.0			0.0
Total	$	86.0		$	37.6		$	21.1

Depreciation and amortization ¹:
IAN	$	166.0		$	136.8		$	108.9
CMG	19.2			19.0			19.0
Corporate and other	7.3			9.5			8.1
Total	$	192.5		$	165.3		$	136.0

Capital expenditures:
IAN	$	161.8		$	143.9		$	112.0
CMG	13.3			13.0			17.7
Corporate and other	23.4			20.2			26.2
Total	$	198.5		$	177.1		$	155.9

1 Excludes amortization of acquired intangibles.



	December 31,
	2019		2018
Total assets:
IAN	$	15,170.3	$	13,867.9
CMG	1,710.4		1,516.7
Corporate and other	871.2		235.7
Total	$	17,751.9	$	15,620.3

The following table presents the reconciliation of segment EBITA to Income before income taxes.



	Years ended December 31,
	2019			2018			2017
IAN EBITA	$	1,110.4		$	1,042.1		$	891.7
CMG EBITA	163.4			180.3			194.4
Corporate and other EBITA	(101.8		)	(176.0		)	(126.6		)
Less: consolidated amortization of acquired intangibles	86.0			37.6			21.1
Operating income	1,086.0			1,008.8			938.4
Total (expenses) and other income	(207.7		)	(170.8		)	(97.6		)
Income before income taxes	$	878.3		$	838.0		$	840.8

Long-lived assets, including operating lease right-of-use assets and excluding intangible assets, are presented by major geographic area in the following table.



	Long-Lived Assets
	December 31,
	2019		2018
Domestic	$	2,080.4	$	892.9
International:
United Kingdom	167.6		57.9
Continental Europe	149.7		57.9
Asia Pacific	240.9		121.7
Latin America	74.8		43.6
Other	130.4		45.7
Total International	763.4		326.8
Total Consolidated	$	2,843.8	$	1,219.7

Property and equipment are allocated based upon physical location. Other assets and investments are allocated based on the location of the related operations.