Acquisitions (Notes)

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Business Combination Disclosure

Acquisitions

We continue to evaluate strategic opportunities to grow and to increase our ownership interests in current investments, particularly in our digital and marketing services offerings, and to expand our presence in high-growth and key strategic markets. Our acquisitions typically provide for an initial payment at the time of closing and additional contingent purchase price payments based on the future performance of the acquired entity. Due to the characteristics of advertising, specialized marketing and communication services companies, our acquisitions typically do not have significant amounts of tangible assets, as the principal asset we typically acquire is talent. As a result, a substantial portion of the purchase price of these acquisitions is allocated to identifiable intangible assets, primarily customer lists and trade names, and goodwill.

During the first half of 2012, we completed six acquisitions, most notably a healthcare market research and consulting agency and a search marketing agency in the United Kingdom. Of our six acquisitions, three were included in the Integrated Agency Networks (“IAN”) operating segment and three were included in the Constituency Management Group (“CMG”) operating segment. During the first half of 2012, we recorded approximately $79.0 of goodwill and intangible assets related to these acquisitions.

During the first half of 2011, we completed nine acquisitions, most notably a digital marketing agency in the United Kingdom. All nine acquisitions were included in the IAN operating segment. During the first half of 2011, we recorded approximately $22.0 of goodwill and intangible assets related to these acquisitions.

All acquired agencies have been integrated into one of our global networks or existing agencies. The results of operations of our acquired companies were included in our consolidated results from the closing date of each acquisition. Details of cash paid for current and prior years' acquisitions are listed below.

	Six months ended June 30,
	2012			2011
Cost of investment: current-year acquisitions	$	59.3		$	8.1
Cost of investment: prior-year acquisitions	35.4			80.5
Less: net cash acquired	(8.6		)	(2.4		)
Total cost of investment 1	86.1			86.2
Operating expense 2	3.2			0.2
Total cash paid for acquisitions	$	89.3		$	86.4

¹  Of the total cash paid, $34.5 and $47.6 for the six months endedJune 30, 2012 and 2011, respectively, are classified under the financing section of the unaudited Consolidated Statements of Cash Flows within acquisition-related payments. These amounts relate to increases in our ownership interests in our consolidated subsidiaries, as well as deferred payments for acquisitions that closed on or after January 1, 2009. Of the total cash paid, $51.6 and $38.6 for the six months endedJune 30, 2012 and 2011, respectively, are classified under the investing section of the unaudited Consolidated Statements of Cash Flows within acquisitions, including deferred payments, net of cash acquired. These amounts relate to initial payments for new transactions and deferred payments for acquisitions that closed prior to January 1, 2009.

²  Represents cash payments made that were either in excess of the contractual value or contingent upon the future employment of the former owners of acquired companies.

Many of our acquisitions also include provisions under which the noncontrolling equity owners may require us to purchase additional interests in a subsidiary at their discretion. The following table presents changes in our redeemable noncontrolling interests.

	Six months ended June 30,
	2012			2011
Balance at beginning of period	$	243.4		$	291.2
Change in related noncontrolling interest balance	(3.7		)	(10.2		)
Changes in redemption value of redeemable noncontrolling interests:
Additions	1.0			5.5
Redemptions and other	(14.2		)	(25.4		)
Redemption value adjustments 1	(4.2		)	11.0
Balance at end of period	$	222.3		$	272.1

¹  Redeemable noncontrolling interests are reported at their estimated redemption value in each reporting period, but not less than their initial fair value. Any adjustment to the redemption value impacts retained earnings or additional paid-in capital, except adjustments as a result of currency translation.