Segment Information (Notes)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Information

As of September 30, 2022, we operate our results across three reportable segments: MD&E, IA&C, and SC&E.

MD&E primarily provides, and is distinguished by innovative capabilities and scale in, global media and communications services, digital services and products, advertising and marketing technology, e‐commerce services, data management and analytics, strategic consulting, and digital brand experience. MD&E is comprised of IPG Mediabrands, Acxiom, and Kinesso, as well as our digital and commerce specialist agencies, which include MRM, R/GA, and Huge.

IA&C primarily provides advertising, corporate and brand identity services, and strategic consulting. IA&C is distinguished by the leading role of complex integrations of ideation and the execution of advertising and creative campaigns across all communications channels that are foundational to client brand identities. IA&C is comprised of leading global networks and agencies that provide a broad range of services, including McCann Worldgroup, IPG Health, MullenLowe Group, Foote, Cone & Belding ("FCB"), and our domestic integrated agencies.

SC&E primarily provides best-in-class global public relations and other specialized communications services, events, sports and entertainment marketing, and strategic consulting. SC&E is comprised of agencies that provide a range of marketing services expertise, including Weber Shandwick, Golin, our sports, entertainment, and experiential agencies, and DXTRA Health.

We also report results for the Corporate and Other group.

In conjunction with the new reporting structure, prior period segment disclosures have been recast to reflect our new reportable segments, as well as the way performance is internally managed and monitored.

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 September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Total revenue:
MD&E	$	994.6	$	1,001.5	$	2,991.2	$	2,876.0
IA&C	1,057.5		1,033.3		3,215.1		3,035.4
SC&E	585.6		507.2		1,735.6		1,397.2
Total	$	2,637.7	$	2,542.0	$	7,941.9	$	7,308.6
Revenue before billable expenses:
MD&E	$	978.0	$	980.0	$	2,927.9	$	2,815.1
IA&C	973.3		951.2		2,941.1		2,789.7
SC&E	344.9		330.5		1,029.9		954.2
Total	$	2,296.2	$	2,261.7	$	6,898.9	$	6,559.0
Segment EBITA1:
MD&E	$	160.9	$	198.5	$	416.9	$	535.9
IA&C	157.3		152.7		464.9		453.7
SC&E	63.8		54.1		179.3		148.0
Corporate and Other	(20.0)		(32.3)		(61.9)		(94.0)
Total	$	362.0	$	373.0	$	999.2	$	1,043.6
Amortization of acquired intangibles:
MD&E	$	17.7	$	17.9	$	53.4	$	54.0
IA&C	1.7		2.5		6.4		7.7
SC&E	0.8		1.1		2.8		3.0
Corporate and Other	0.0		0.0		0.0		0.0
Total	$	20.2	$	21.5	$	62.6	$	64.7
Depreciation and amortization 2:
MD&E	$	26.0	$	26.0	$	77.8	$	75.3
IA&C	15.1		15.5		44.3		49.0
SC&E	4.2		4.0		12.6		13.3
Corporate and Other	1.5		2.4		4.6		6.4
Total	$	46.8	$	47.9	$	139.3	$	144.0
Capital expenditures:
MD&E	$	26.9	$	36.6	$	64.4	$	66.8
IA&C	10.0		15.8		27.0		34.9
SC&E	2.4		2.4		5.7		4.7
Corporate and Other	6.9		6.5		21.4		17.0
Total	$	46.2	$	61.3	$	118.5	$	123.4

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 non-controlling interests and amortization of acquired intangibles.

2 Excludes amortization of acquired intangibles.

	September 30, 2022		December 31, 2021
Total assets:
MD&E	$	8,443.0	$	9,580.6
IA&C	5,294.0		6,001.1
SC&E	1,649.6		1,594.0
Corporate and Other	1,488.6		2,733.5
Total	$	16,875.2	$	19,909.2

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

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
MD&E EBITA	$	160.9	$	198.5	$	416.9	$	535.9
IA&C EBITA	157.3		152.7		464.9		453.7
SC&E EBITA	63.8		54.1		179.3		148.0
Corporate and Other EBITA	(20.0)		(32.3)		(61.9)		(94.0)
Less: consolidated amortization of acquired intangibles	20.2		21.5		62.6		64.7
Operating income	341.8		351.5		936.6		978.9
Total (expenses) and other income	(10.4)		(33.2)		(80.5)		(190.1)
Income before income taxes	$	331.4	$	318.3	$	856.1	$	788.8