Segment Information (Notes)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Information

As of September 30, 2019, we have two reportable segments: IAN and CMG. IAN is comprised of McCann Worldgroup, FCB (Foote, Cone & Belding), MullenLowe Group, IPG Mediabrands, Acxiom, our digital specialist agencies and our domestic integrated agencies. CMG is comprised of a number of our specialist marketing services offerings. We also report results for the Corporate and other group. Beginning in the first quarter of 2019, Acxiom's results are presented in IAN, although 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,
	2019			2018			2019			2018
Total revenue:
IAN	$	1,903.9		$	1,774.7		$	5,744.7		$	5,272.7
CMG	534.2			522.8			1,574.8			1,585.7
Total	$	2,438.1		$	2,297.5		$	7,319.5		$	6,858.4
Net revenue:
IAN	$	1,743.9		$	1,580.5		$	5,260.9		$	4,690.9
CMG	317.5			315.2			931.2			927.0
Total	$	2,061.4		$	1,895.7		$	6,192.1		$	5,617.9
Segment EBITA:
IAN	$	261.2		$	240.2		$	637.4		$	543.4
CMG	51.8			49.2			97.3			113.1
Corporate and other	(11.0		)	(22.6		)	(75.4		)	(91.2		)
Total	$	302.0		$	266.8		$	659.3		$	565.3
Amortization of acquired intangibles:
IAN	$	20.6		$	3.9		$	61.3		$	11.9
CMG	1.1			1.2			3.3			3.7
Corporate and other	0.0			0.0			0.0			0.0
Total	$	21.7		$	5.1		$	64.6		$	15.6
Depreciation:
IAN	$	41.3		$	33.0		$	128.8		$	98.2
CMG	4.8			4.9			14.3			14.5
Corporate and other	1.2			1.0			5.4			5.7
Total	$	47.3		$	38.9		$	148.5		$	118.4
Capital expenditures:
IAN	$	44.5		$	35.2		$	106.9		$	82.9
CMG	4.0			4.2			7.9			7.2
Corporate and other	5.2			4.8			19.0			15.6
Total	$	53.7		$	44.2		$	133.8		$	105.7

 

	September 30, 2019		December 31, 2018
Total assets 1:
IAN	$	13,998.5	$	13,867.9
CMG	1,656.1		1,516.7
Corporate and other	343.0		235.7
Total	$	15,997.6	$	15,620.3

1 Results for December 31, 2018 have been restated to conform to the current-period presentation.

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

	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
IAN EBITA	$	261.2		$	240.2		$	637.4		$	543.4
CMG EBITA	51.8			49.2			97.3			113.1
Corporate and other EBITA	(11.0		)	(22.6		)	(75.4		)	(91.2		)
Less: consolidated amortization of acquired intangibles	21.7			5.1			64.6			15.6
Operating income	280.3			261.7			594.7			549.7
Total (expenses) and other income	(47.6		)	(37.6		)	(144.2		)	(115.6		)
Income before income taxes	$	232.7		$	224.1		$	450.5		$	434.1