Segment Information (Notes)

3 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Information

As of June 30, 2020, we have two reportable segments: IAN and CMG. IAN is comprised of McCann Worldgroup, FCB (Foote, Cone & Belding), MullenLowe Group, Media, Data Services and Tech, which includes IPG Mediabrands, Acxiom and Kinesso, our digital specialist agencies and our domestic integrated agencies. CMG is comprised of a number of our specialist marketing services offerings including Weber Shandwick, DeVries, Golin, FutureBrand, Jack Morton and Octagon Worldwide. We also report results for the “Corporate and other” group. We continue to evaluate our financial reporting structure, 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. Summarized financial information concerning our reportable segments is shown in the following table.

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Total revenue:
IAN	$	1,672.5		$	1,959.6		$	3,491.3		$	3,821.8
CMG	353.2			560.6			894.2			1,059.6
Total	$	2,025.7		$	2,520.2		$	4,385.5		$	4,881.4
Net revenue:
IAN	$	1,585.7		$	1,801.1		$	3,250.2		$	3,507.2
CMG	267.7			324.8			575.3			623.5
Total	$	1,853.4		$	2,125.9		$	3,825.5		$	4,130.7
Segment EBITA 1:
IAN	$	100.4		$	262.4		$	199.4		$	378.4
CMG	(26.3		)	42.9			(4.0		)	43.3
Corporate and other	(11.8		)	(19.8		)	(35.9		)	(64.4		)
Total	$	62.3		$	285.5		$	159.5		$	357.3
Amortization of acquired intangibles:
IAN	$	20.8		$	20.2		$	41.0		$	40.7
CMG	1.0			1.1			2.1			2.2
Corporate and other	0.0			0.0			0.0			0.0
Total	$	21.8		$	21.3		$	43.1		$	42.9
Depreciation and amortization 2:
IAN	$	45.3		$	44.9		$	90.0		$	87.0
CMG	5.4			5.2			10.5			10.0
Corporate and other	0.6			1.6			2.3			4.2
Total	$	51.3		$	51.7		$	102.8		$	101.2
Capital expenditures:
IAN	$	19.8		$	35.9		$	53.5		$	62.4
CMG	1.3			2.9			2.9			3.9
Corporate and other	6.2			8.5			15.5			13.8
Total	$	27.3		$	47.3		$	71.9		$	80.1

 

1 Adjusted EBITA is calculated as net (loss) income available to IPG common stockholders before provision for incomes taxes, total (expenses) and other income, equity in net loss of unconsolidated affiliates, net (income) loss attributable to noncontrolling interests and amortization of acquired intangibles.

2 Excludes amortization of acquired intangibles.

	June 30, 2020		December 31, 2019
Total assets:
IAN	$	12,667.1	$	15,155.2
CMG	1,528.2		1,725.5
Corporate and other	701.6		871.2
Total	$	14,896.9	$	17,751.9

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

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
IAN EBITA	$	100.4		$	262.4		$	199.4		$	378.4
CMG EBITA	(26.3		)	42.9			(4.0		)	43.3
Corporate and other EBITA	(11.8		)	(19.8		)	(35.9		)	(64.4		)
Less: consolidated amortization of acquired intangibles	21.8			21.3			43.1			42.9
Operating income	40.5			264.2			116.4			314.4
Total (expenses) and other income	(65.4		)	(47.7		)	(121.3		)	(96.6		)
(Loss) Income before income taxes	$	(24.9	)	$	216.5		$	(4.9	)	$	217.8