Acquisitions (Notes)

3 Months Ended

Mar. 31, 2013

Business Combinations [Abstract]

Business Combination Disclosure

Acquisitions

We continue to evaluate strategic opportunities to expand our industry expertise, strengthen our position in high-growth and key strategic geographical markets and industry sectors, advance technological capabilities and improve operational efficiency through both acquisitions and increased ownership interests in current investments. 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. We have entered into agreements that may require us to purchase additional equity interests in certain consolidated and unconsolidated subsidiaries. The amounts at which we record these transactions in our financial statements are based on estimates of the future financial performance of the acquired entity, the timing of the exercise of these rights, changes in foreign currency exchange rates and other factors.

During the first quarter of 2013, we completed six acquisitions, including a full-service digital agency in India and a mobile marketing agency in Australia. All six acquisitions were included in the Integrated Agency Networks (“IAN”) operating segment. During the first quarter of 2013, we recorded approximately $53.0 of goodwill and intangible assets related to these acquisitions.

During the first quarter of 2012, we completed three acquisitions, which included an entertainment marketing agency in the United Kingdom. All three acquisitions were included in the Constituency Management Group ("CMG") operating segment. During the first quarter of 2012, we recorded approximately $5.0 of goodwill and intangible assets related to these acquisitions.

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.

	Three months ended March 31,
	2013			2012
Cost of investment: current-year acquisitions	$	39.0		$	2.4
Cost of investment: prior-year acquisitions	0.7			0.9
Less: net cash acquired	(4.1		)	(1.2		)
Total cash paid for acquisitions 1	$	35.6		$	2.1

¹  Of the total cash paid, $0.7 for the three months endedMarch 31, 2013 is classified under the financing section of the unaudited Consolidated Statements of Cash Flows within other financing activities. 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, $34.9 and $2.1 for the three months endedMarch 31, 2013, and 2012, 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.

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.

	Three months ended March 31,
	2013			2012
Balance at beginning of period	$	227.2		$	243.4
Change in related noncontrolling interests balance	(1.7		)	(3.9		)
Changes in redemption value of redeemable noncontrolling interests:
Additions	12.5			0.0
Redemptions and other	(1.3		)	(13.0		)
Redemption value adjustments 1	(1.4		)	(2.8		)
Balance at end of period	$	235.3		$	223.7

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.