Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company determines an operating segment if a component (1) engages in business activities from which it earns revenues and incurs expenses, and (2) has discrete financial information that is (3) regularly reviewed by the Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance. During 2015, the Company had a change in the CODM as well as a change in how the CODM manages the business. As a result, in the fourth quarter of 2015, the Company reassessed its determination of operating segments. Decisions regarding allocations of resources are made and will be made based on the overall performance of the overall Partner Firm network. Therefore, the Company has determined that the Partner Firm network represents its operating segment. The Company also reassessed its previous allocation methodology and has conformed the allocations to align with how the CODM manages the business. The overall Partner Firm network consists of each of the Company's operating agencies. The Company now reports in one reportable Advertising and Communications Segment in addition to the Corporate Group described as follows:

• The Advertising and Communications Segment consists of Partner Firms that deliver innovative, value-added marketing, activation, communications and strategic consulting services to their clients. MDC and its Partner Firms deliver a wide range of customized services, including (1) multi-channel media management and optimization, (2) interactive and mobile marketing, (3) direct marketing, (4) database and customer relationship management, (5) sales promotion, (6) corporate communications, (7) market research, (8) data analytics and insights, (9) corporate identity, design and branding services, (10) social media communications, (11) product and service innovation and (12) e-commerce management.

• The Corporate Group consists of corporate office expenses incurred in connection with the strategic resources provided to the Advertising and Communications Segment, as well as certain other centrally managed expenses that are not fully allocated to the reportable segment. Office and general expenses include (1) salaries and related expenses for corporate office employees including employees dedicated to supporting the Partner Firms, (2) occupancy expense relating to properties occupied by all corporate office employees, (3) other office and general expenses including professional fees for the financial statement audits, and (4) certain other professional fees managed by the corporate office. Additional expenses managed by the corporate office that are directly related to the Partner Firms are allocated to the reportable segment.

Prior year results have been recast to reflect the new reportable segment.

The significant accounting policies are in the summary of significant accounting policies included in the notes to the consolidated financial statements.

	For the year ended December 31, 2015
	Advertising and Communications			Corporate			Total
Revenue	$	1,326,256		$	—		$	1,326,256
Cost of services sold	879,716			—			879,716
Office and general expenses	258,809			63,398			322,207
Depreciation and amortization	50,449			1,774			52,223
Operating profit (loss)	137,282			(65,172		)	72,110
Other Income (Expense):
Other income, net							7,238
Foreign exchange loss							(39,328		)
Interest expense and finance charges, net							(57,436		)
Loss from continuing operations before income taxes and equity in earnings of non-consolidated affiliates							(17,416		)
Income tax expense							5,664
Loss from continuing operations before equity in earnings of non-consolidated affiliates							(23,080		)
Equity in earnings of non-consolidated affiliates							1,058
Loss from continuing operations							(22,022		)
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes							(6,281		)
Net loss							(28,303		)
Net income attributable to noncontrolling interests	(9,024		)	(30		)	(9,054		)
Net loss attributable to MDC Partners Inc.							$	(37,357	)
Stock-based compensation	$	15,056		$	2,740		$	17,796
Capital expenditures from continuing operations	$	23,204		$	371		$	23,575
Goodwill and intangibles	$	942,683		$	—		$	942,683
Total assets	$	1,375,372		$	214,878		$	1,590,250

	For the year ended December 31, 2014
	Advertising and Communications			Corporate			Total
Revenue	$	1,223,512		$	—		$	1,223,512
Cost of services sold	798,518			—			798,518
Office and general expenses	223,781			66,292			290,073
Depreciation and amortization	45,387			1,785			47,172
Operating profit (loss)	155,826			(68,077		)	87,749
Other Income (Expense):
Other income, net							689
Foreign exchange loss							(18,482		)
Interest expense and finance charges, net							(54,847		)
Income from continuing operations before income taxes and equity in earnings of non-consolidated affiliates							15,109
Income tax expense							12,422
Income from continuing operations before equity in earnings of non-consolidated affiliates							2,687
Equity in earnings of non-consolidated affiliates							1,406
Income from continuing operations							4,093
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes							(21,260		)
Net loss							(17,167		)
Net income attributable to noncontrolling interests	(6,890		)	—			(6,890		)
Net loss attributable to MDC Partners Inc.							$	(24,057	)
Stock-based compensation	$	12,033		$	5,663		$	17,696
Capital expenditures from continuing operations	$	25,079		$	1,337		$	26,416
Goodwill and intangibles	$	937,494		$	—		$	937,494
Total assets	$	1,368,137		$	280,753		$	1,648,890

	For the year ended December 31, 2013
	Advertising and Communications			Corporate			Total
Revenue	$	1,062,478		$	—		$	1,062,478
Cost of services sold	704,969			—			704,969
Office and general expenses	212,933			143,031			355,964
Depreciation and amortization	34,745			1,394			36,139
Operating profit (loss)	109,831			(144,425		)	(34,594		)
Other Income (Expense):
Other income, net							2,531
Foreign exchange loss							(5,516		)
Interest expense, finance charges, and loss on redemption of notes, net							(100,271		)
Loss from continuing operations before income taxes and equity in earnings of non-consolidated affiliates							(137,850		)
Income tax benefit							(4,367		)
Loss from continuing operations before equity in earnings of non-consolidated affiliates							(133,483		)
Equity in earnings of non-consolidated affiliates							281
Loss from continuing operations							(133,202		)
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes							(9,200		)
Net loss							(142,402		)
Net income attributable to noncontrolling interests	(6,459		)	(2		)	(6,461		)
Net loss attributable to MDC Partners Inc.							$	(148,863	)
Stock-based compensation	$	8,950		$	91,455		$	100,405
Capital expenditures from continuing operations	$	14,677		$	2,132		$	16,809
Goodwill and intangibles	$	800,595		$	—		$	800,595
Total assets	$	1,220,753		$	204,474		$	1,425,227

A summary of the Company’s long-lived assets, comprised of fixed assets, goodwill and intangibles, net, as at December 31, is set forth in the following table.

	United States		Canada		Other		Total
Long-lived Assets
2015	$	52,305	$	6,817	$	4,435	$	63,557
2014	$	48,884	$	7,099	$	4,257	$	60,240
Goodwill and Intangible Assets
2015	$	798,746	$	122,821	$	21,116	$	942,683
2014	$	759,035	$	154,349	$	24,110	$	937,494

A summary of the Company’s revenue as at December 31 is set forth in the following table.

	United States		Canada		Other		Total
Revenue:
2015	$	1,085,051	$	129,039	$	112,166	$	1,326,256
2014	$	993,474	$	150,390	$	79,648	$	1,223,512
2013	$	870,525	$	135,630	$	56,323	$	1,062,478