XML 42 R28.htm IDEA: XBRL DOCUMENT v3.22.0.1
Segment Information (Notes)
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
As of December 31, 2021, we have two reportable segments: IAN and DXTRA. IAN is comprised of McCann Worldgroup, Foote, Cone & Belding ("FCB"), MullenLowe Group, Media, Data Services and Tech, which includes IPG Mediabrands, Acxiom and Kinesso, our digital specialist agencies and our domestic integrated agencies. DXTRA 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.
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. Additionally, our domestic integrated agencies 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 Services and Tech 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.
DXTRA, 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. DXTRA shares some similarities with service lines offered by IAN; however, on an aggregate basis, DXTRA has a higher proportion of arrangements for which they act as principal.
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,
 202120202019
Total Revenue:
IAN $8,419.4 $7,410.1 $7,992.0 
DXTRA1,821.3 1,650.9 2,229.3 
Total$10,240.7 $9,061.0 $10,221.3 
Net revenue:
IAN $7,839.8 $6,921.4 $7,328.8 
DXTRA1,268.1 1,143.1 1,296.3 
Total$9,107.9 $8,064.5 $8,625.1 
   
Segment EBITA 1:
IAN $1,465.3 $699.1 $1,115.7 
DXTRA186.5 56.5 158.1 
Corporate and other (129.4)(81.3)(101.8)
Total$1,522.4 $674.3 $1,172.0 
   
Amortization of acquired intangibles:
IAN $81.7 $81.5 $81.6 
DXTRA4.5 4.4 4.4 
Corporate and other 0.0 0.0 0.0 
Total$86.2 $85.9 $86.0 
Depreciation and amortization 2:
IAN $172.0 $178.9 $164.6 
DXTRA16.4 20.4 20.6 
Corporate and other 9.2 5.4 7.3 
Total$197.6 $204.7 $192.5 
   
Capital expenditures:
IAN $157.3 $132.0 $161.8 
DXTRA8.1 8.4 13.3 
Corporate and other 29.9 27.1 23.4 
Total$195.3 $167.5 $198.5 
1 Adjusted EBITA is calculated as net income available to IPG common stockholders before provision for income taxes, total (expenses) and other income, equity in net income of unconsolidated affiliates, net income attributable to noncontrolling interests and amortization of acquired intangibles.
2 Excludes amortization of acquired intangibles.
December 31,
 20212020
Total assets:
IAN $15,596.1 $14,784.5 
DXTRA1,579.5 1,549.2 
Corporate and other 2,733.6 1,709.0 
Total$19,909.2 $18,042.7 
The following table presents the reconciliation of segment EBITA to Income before income taxes.
Years ended December 31,
202120202019
IAN EBITA$1,465.3 $699.1 $1,115.7 
DXTRA EBITA186.5 56.5 158.1 
Corporate and other EBITA(129.4)(81.3)(101.8)
Less: consolidated amortization of acquired intangibles86.2 85.9 86.0 
Operating income1,436.2 588.4 1,086.0 
Total (expenses) and other income(214.1)(227.1)(207.7)
Income before income taxes$1,222.1 $361.3 $878.3 
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,
 20212020
Domestic$1,879.8 $1,801.4 
International:
United Kingdom311.3 216.6 
Continental Europe102.6 117.5 
Asia Pacific177.7 183.1 
Latin America50.7 58.9 
Other97.8 116.5 
Total International740.1 692.6 
Total Consolidated$2,619.9 $2,494.0 
Property and equipment are allocated based upon physical location. Other assets and investments are allocated based on the location of the related operations.