QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated Filer | ☐ | ||||||||||||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||||||||
Emerging Growth Company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 1. | Financial Statements (Unaudited) |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
REVENUE: | |||||||||||
Revenue before billable expenses | $ | $ | |||||||||
Billable expenses | |||||||||||
Total revenue | |||||||||||
OPERATING EXPENSES: | |||||||||||
Salaries and related expenses | |||||||||||
Office and other direct expenses | |||||||||||
Billable expenses | |||||||||||
Cost of services | |||||||||||
Selling, general and administrative expenses | |||||||||||
Depreciation and amortization | |||||||||||
Restructuring charges | |||||||||||
Total operating expenses | |||||||||||
OPERATING INCOME | |||||||||||
EXPENSES AND OTHER INCOME: | |||||||||||
Interest expense | ( | ( | |||||||||
Interest income | |||||||||||
Other expense, net | ( | ( | |||||||||
Total (expenses) and other income | ( | ( | |||||||||
INCOME BEFORE INCOME TAXES | |||||||||||
Provision for income taxes | |||||||||||
INCOME OF CONSOLIDATED COMPANIES | |||||||||||
Equity in net income (loss) of unconsolidated affiliates | ( | ||||||||||
NET INCOME | |||||||||||
Net income attributable to non-controlling interests | ( | ( | |||||||||
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | $ | |||||||||
Earnings per share available to IPG common stockholders: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
NET INCOME | $ | $ | |||||||||
OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||
Foreign currency translation: | |||||||||||
Foreign currency translation adjustments | ( | ||||||||||
( | |||||||||||
Derivative instruments: | |||||||||||
Changes in fair value of derivative instruments | ( | ||||||||||
Recognition of previously unrealized net gain in net income | ( | ( | |||||||||
Income tax effect | |||||||||||
( | ( | ||||||||||
Defined benefit pension and other postretirement plans: | |||||||||||
Net actuarial gain for the period | |||||||||||
Amortization of unrecognized losses, transition obligation and prior service cost included in net income | |||||||||||
Other | |||||||||||
Income tax effect | ( | ( | |||||||||
Other comprehensive (loss) income, net of tax | ( | ||||||||||
TOTAL COMPREHENSIVE INCOME | |||||||||||
Less: comprehensive income attributable to non-controlling interests | |||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO IPG | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
ASSETS: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance of $45.1 and $46.4, respectively | |||||||||||
Accounts receivable, billable to clients | |||||||||||
Prepaid expenses | |||||||||||
Assets held for sale | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net of accumulated depreciation and amortization of $1,247.4 and $1,224.9, respectively | |||||||||||
Deferred income taxes | |||||||||||
Goodwill | |||||||||||
Other intangible assets | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other non-current assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Contract liabilities | |||||||||||
Short-term borrowings | |||||||||||
Current portion of long-term debt | |||||||||||
Current portion of operating leases | |||||||||||
Liabilities held for sale | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Non-current operating leases | |||||||||||
Deferred compensation | |||||||||||
Other non-current liabilities | |||||||||||
TOTAL LIABILITIES | |||||||||||
Redeemable non-controlling interests (see Note 5) | |||||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||
Common stock | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss, net of tax | ( | ( | |||||||||
Less: Treasury stock | |||||||||||
Total IPG stockholders’ equity | |||||||||||
Non-controlling interests | |||||||||||
TOTAL STOCKHOLDERS’ EQUITY | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | $ |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Net amortization of bond discounts and deferred financing costs | |||||||||||
Provision for uncollectible receivables | ( | ||||||||||
Deferred income tax | |||||||||||
Net losses on sales of businesses | |||||||||||
Amortization of restricted stock and other non-cash compensation | |||||||||||
Depreciation and amortization | |||||||||||
Other | |||||||||||
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash: | |||||||||||
Accounts receivable | |||||||||||
Accounts receivable, billable to clients | ( | ||||||||||
Prepaid expenses | ( | ( | |||||||||
Other current assets | |||||||||||
Accounts payable | ( | ( | |||||||||
Accrued liabilities | ( | ( | |||||||||
Contract liabilities | |||||||||||
Other non-current assets and liabilities | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Net proceeds from sale of businesses, net of cash sold | ( | ||||||||||
Acquisitions, net of cash acquired | ( | ||||||||||
Other investing activities | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Common stock dividends | ( | ( | |||||||||
Repurchases of common stock | ( | ( | |||||||||
Net decrease in short-term borrowings | ( | ( | |||||||||
Tax payments for employee shares withheld | ( | ( | |||||||||
Distributions to non-controlling interests | ( | ( | |||||||||
Acquisition-related payments | ( | ||||||||||
Other financing activities | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | ( | ( | |||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Tax | Treasury Stock | Total IPG Stockholders’ Equity | Non-controlling Interests | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications related to redeemable non-controlling interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redemption value of redeemable non-controlling interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($0.33 per share) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for taxes | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Tax | Treasury Stock | Total IPG Stockholders’ Equity | Non-controlling Interests | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications related to redeemable non-controlling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($0.31 per share) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for taxes | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Three months ended March 31, | |||||||||||
Total revenue: | 2024 | 2023 | |||||||||
United States | $ | $ | |||||||||
International: | |||||||||||
United Kingdom | |||||||||||
Continental Europe | |||||||||||
Asia Pacific | |||||||||||
Latin America | |||||||||||
Other | |||||||||||
Total International | |||||||||||
Total Consolidated | $ | $ |
Three months ended March 31, | |||||||||||
Revenue before billable expenses: | 2024 | 2023 | |||||||||
United States | $ | $ | |||||||||
International: | |||||||||||
United Kingdom | |||||||||||
Continental Europe | |||||||||||
Asia Pacific | |||||||||||
Latin America | |||||||||||
Other | |||||||||||
Total International | |||||||||||
Total Consolidated | $ | $ |
MD&E | Three months ended March 31, | ||||||||||
Total revenue: | 2024 | 2023 | |||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total MD&E | $ | $ | |||||||||
Revenue before billable expenses: | |||||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total MD&E | $ | $ |
IA&C | Three months ended March 31, | ||||||||||
Total revenue: | 2024 | 2023 | |||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total IA&C | $ | $ | |||||||||
Revenue before billable expenses: | |||||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total IA&C | $ | $ |
SC&E | Three months ended March 31, | ||||||||||
Total revenue: | 2024 | 2023 | |||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total SC&E | $ | $ | |||||||||
Revenue before billable expenses: | |||||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total SC&E | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Accounts receivable, net of allowance of $45.1 and $46.4, respectively | $ | $ | |||||||||
Accounts receivable, billable to clients | |||||||||||
Contract assets | |||||||||||
Contract liabilities (deferred revenue) |
Effective Interest Rate | March 31, 2024 | December 31, 2023 | |||||||||||||||
4.200% Senior Notes due 2024 | $ | $ | |||||||||||||||
4.650% Senior Notes due 2028 (less unamortized discount and issuance costs of $0.9 and $2.0, respectively) | |||||||||||||||||
4.750% Senior Notes due 2030 (less unamortized discount and issuance costs of $2.5 and $3.7, respectively) | |||||||||||||||||
2.400% Senior Notes due 2031 (less unamortized discount and issuance costs of $0.6 and $3.2, respectively) | |||||||||||||||||
5.375% Senior Notes due 2033 (less unamortized discount and issuance costs of $3.6 and $2.9, respectively) | |||||||||||||||||
3.375% Senior Notes due 2041 (less unamortized discount and issuance costs of $1.0 and $4.9, respectively) | |||||||||||||||||
5.400% Senior Notes due 2048 (less unamortized discount and issuance costs of $2.5 and $4.6, respectively) | |||||||||||||||||
Other notes payable and finance leases | |||||||||||||||||
Total long-term debt | |||||||||||||||||
Less: current portion | |||||||||||||||||
Long-term debt, excluding current portion | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income available to IPG common stockholders | $ | $ | |||||||||
Weighted-average number of common shares outstanding - basic | |||||||||||
Dilutive effect of stock options and restricted shares | |||||||||||
Weighted-average number of common shares outstanding - diluted | |||||||||||
Earnings per share available to IPG common stockholders: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Salaries, benefits and related expenses | $ | $ | |||||||||
Interest | |||||||||||
Income taxes payable | |||||||||||
Office and related expenses | |||||||||||
Acquisition obligations | |||||||||||
Restructuring charges | |||||||||||
Other | |||||||||||
Total accrued liabilities | $ | $ |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net losses on sales of businesses | $ | ( | $ | ( | |||||||
Other | ( | ( | |||||||||
Total other expense, net | $ | ( | $ | ( |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Number of shares repurchased | |||||||||||
Aggregate cost, including fees1 | $ | $ | |||||||||
Average price per share, including fees | $ | $ |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Balance at beginning of period | $ | $ | |||||||||
Change in related non-controlling interests balance | ( | ||||||||||
Changes in redemption value of redeemable non-controlling interests: | |||||||||||
Additions | |||||||||||
Redemptions and other | ( | ( | |||||||||
Redemption value adjustments | |||||||||||
Currency translation adjustments | |||||||||||
Balance at end of period | $ | $ |
MD&E | IA&C | SC&E | Total | ||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Goodwill Reallocation | ( | ||||||||||||||||||||||
Balance at January 1, 2024 | |||||||||||||||||||||||
(Dispositions)/Acquisitions | ( | ( | |||||||||||||||||||||
Foreign Currency and Other | ( | ( | ( | ( | |||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ |
Awards | Weighted-average grant-date fair value (per award) | ||||||||||
Restricted stock (units) | $ | ||||||||||
Performance-based stock (shares) | $ | ||||||||||
Total stock-based compensation awards |
Foreign Currency Translation Adjustments | Derivative Instruments | Defined Benefit Pension and Other Postretirement Plans | Total | ||||||||||||||||||||
Balance as of December 31, 2023 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive (loss) income before reclassifications | ( | ( | |||||||||||||||||||||
Amount reclassified from accumulated other comprehensive loss, net of tax | ( | ||||||||||||||||||||||
Balance as of March 31, 2024 | $ | ( | $ | $ | ( | $ | ( |
Foreign Currency Translation Adjustments | Derivative Instruments | Defined Benefit Pension and Other Postretirement Plans | Total | ||||||||||||||||||||
Balance as of December 31, 2022 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ||||||||||||||||||||||
Amount reclassified from accumulated other comprehensive loss, net of tax | ( | ||||||||||||||||||||||
Balance as of March 31, 2023 | $ | ( | $ | $ | ( | $ | ( |
Three months ended March 31, | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
Net gain on derivative instruments | $ | ( | $ | ( | Other expense, net, Interest expense | ||||||||||||
Amortization of defined benefit pension and postretirement plan items | Other expense, net | ||||||||||||||||
Tax effect | ( | ( | Provision for income taxes | ||||||||||||||
Total amount reclassified from accumulated other comprehensive loss, net of tax | $ | $ |
Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||
Unrecognized actuarial losses | |||||||||||||||||||||||||||||||||||
Net periodic cost | $ | $ | $ | $ | $ | $ |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Total revenue: | |||||||||||
MD&E | $ | $ | |||||||||
IA&C | |||||||||||
SC&E | |||||||||||
Total | $ | $ | |||||||||
Revenue before billable expenses: | |||||||||||
MD&E | $ | $ | |||||||||
IA&C | |||||||||||
SC&E | |||||||||||
Total | $ | $ | |||||||||
Restructuring1: | |||||||||||
MD&E | $ | $ | |||||||||
IA&C | |||||||||||
SC&E | |||||||||||
Corporate and Other | |||||||||||
Total | $ | $ | |||||||||
Segment EBITA2: | |||||||||||
MD&E | $ | $ | |||||||||
IA&C | |||||||||||
SC&E | |||||||||||
Corporate and Other | ( | ( | |||||||||
Total | $ | $ | |||||||||
Amortization of acquired intangibles: | |||||||||||
MD&E | $ | $ | |||||||||
IA&C | |||||||||||
SC&E | |||||||||||
Corporate and Other | |||||||||||
Total | $ | $ | |||||||||
Depreciation and amortization3: | |||||||||||
MD&E | $ | $ | |||||||||
IA&C | |||||||||||
SC&E | |||||||||||
Corporate and Other | |||||||||||
Total | $ | $ | |||||||||
Capital expenditures: | |||||||||||
MD&E | $ | $ | |||||||||
IA&C | |||||||||||
SC&E |
Corporate and Other | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Total assets: | |||||||||||
MD&E | $ | $ | |||||||||
IA&C | |||||||||||
SC&E | |||||||||||
Corporate and Other | |||||||||||
Total | $ | $ |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
MD&E EBITA | $ | $ | |||||||||
IA&C EBITA | |||||||||||
SC&E EBITA | |||||||||||
Corporate and Other EBITA | ( | ( | |||||||||
Less: consolidated amortization of acquired intangibles | |||||||||||
Operating income | |||||||||||
Total (expenses) and other income | ( | ( | |||||||||
Income before income taxes | $ | $ |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
March 31, 2024 | Balance Sheet Classification | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | Cash and cash equivalents | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Contingent acquisition obligations 1 | $ | $ | $ | $ | Accrued liabilities and Other non-current liabilities | ||||||||||||||||||||||||
December 31, 2023 | Balance Sheet Classification | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | Cash and cash equivalents | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Contingent acquisition obligations 1 | $ | $ | $ | $ | Accrued liabilities and Other non-current liabilities |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
Total long-term debt | $ | $ | $ | $ | $ | $ | $ | $ |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended March 31, | |||||||||||||||||
Statement of Operations Data | 2024 | 2023 | % Increase/ (Decrease) | ||||||||||||||
REVENUE: | |||||||||||||||||
Revenue before billable expenses | $ | 2,182.9 | $ | 2,176.9 | 0.3 | % | |||||||||||
Billable expenses | 313.0 | 344.1 | (9.0) | % | |||||||||||||
Total revenue | $ | 2,495.9 | $ | 2,521.0 | (1.0) | % | |||||||||||
OPERATING INCOME | $ | 184.2 | $ | 188.3 | (2.2) | % | |||||||||||
Adjusted EBITA 1 | $ | 204.9 | $ | 209.2 | (2.1) | % | |||||||||||
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | 110.4 | $ | 126.0 | |||||||||||||
Earnings per share available to IPG common stockholders: | |||||||||||||||||
Basic | $ | 0.29 | $ | 0.33 | |||||||||||||
Diluted | $ | 0.29 | $ | 0.33 | |||||||||||||
Operating Ratios | |||||||||||||||||
Organic change in revenue before billable expenses | 1.3 | % | (0.2) | % | |||||||||||||
Operating margin on revenue before billable expenses | 8.4 | % | 8.6 | % | |||||||||||||
Operating margin on total revenue | 7.4 | % | 7.5 | % | |||||||||||||
Adjusted EBITA margin on revenue before billable expenses 1 | 9.4 | % | 9.6 | % | |||||||||||||
Expenses as a % of revenue before billable expenses: | |||||||||||||||||
Salaries and related expenses | 72.1 | % | 72.5 | % | |||||||||||||
Office and other direct expenses | 14.8 | % | 15.2 | % | |||||||||||||
Selling, general and administrative expenses | 1.7 | % | 0.6 | % | |||||||||||||
Depreciation and amortization | 3.0 | % | 3.1 | % | |||||||||||||
Restructuring charges 2 | 0.0 | % | 0.1 | % | |||||||||||||
Components of Change | Change | ||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Three months ended March 31, 2024 | Organic | Total | |||||||||||||||||||||||||||||||||||
Consolidated | $ | 2,176.9 | $ | 1.6 | $ | (23.4) | $ | 27.8 | $ | 2,182.9 | 1.3 | % | 0.3 | % | |||||||||||||||||||||||||||
Domestic | 1,470.6 | — | (25.9) | 31.6 | 1,476.3 | 2.1 | % | 0.4 | % | ||||||||||||||||||||||||||||||||
International | 706.3 | 1.6 | 2.5 | (3.8) | 706.6 | (0.5) | % | 0.0 | % | ||||||||||||||||||||||||||||||||
United Kingdom | 170.2 | 7.4 | — | 0.4 | 178.0 | 0.2 | % | 4.6 | % | ||||||||||||||||||||||||||||||||
Continental Europe | 163.7 | 1.2 | — | 14.6 | 179.5 | 8.9 | % | 9.7 | % | ||||||||||||||||||||||||||||||||
Asia Pacific | 159.2 | (6.0) | 2.5 | (12.9) | 142.8 | (8.1) | % | (10.3) | % | ||||||||||||||||||||||||||||||||
Latin America | 84.7 | (0.1) | — | 2.5 | 87.1 | 3.0 | % | 2.8 | % | ||||||||||||||||||||||||||||||||
Other | 128.5 | (0.9) | — | (8.4) | 119.2 | (6.5) | % | (7.2) | % |
Three months ended March 31, | |||||||||||||||||
2024 | 2023 | % Increase/ (Decrease) | |||||||||||||||
Salaries and related expenses | $ | 1,572.8 | $ | 1,577.3 | (0.3) | % | |||||||||||
As a % of revenue before billable expenses: | |||||||||||||||||
Salaries and related expenses | 72.1 | % | 72.5 | % | |||||||||||||
Base salaries, benefits and tax | 62.9 | % | 64.0 | % | |||||||||||||
Incentive expense | 2.6 | % | 2.5 | % | |||||||||||||
Severance expense | 2.2 | % | 1.5 | % | |||||||||||||
Temporary help | 3.3 | % | 3.4 | % | |||||||||||||
All other salaries and related expenses | 1.1 | % | 1.1 | % |
Three months ended March 31, | |||||||||||||||||
2024 | 2023 | % Increase/ (Decrease) | |||||||||||||||
Office and other direct expenses | $ | 322.1 | $ | 330.3 | (2.5) | % | |||||||||||
As a % of revenue before billable expenses: | |||||||||||||||||
Office and other direct expenses | 14.8 | % | 15.2 | % | |||||||||||||
Occupancy expense | 4.4 | % | 4.4 | % | |||||||||||||
All other office and other direct expenses 1 | 10.4 | % | 10.8 | % |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash interest on debt obligations | $ | (62.5) | $ | (49.0) | |||||||
Non-cash interest | (0.3) | (0.7) | |||||||||
Interest expense | (62.8) | (49.7) | |||||||||
Interest income | 48.7 | 34.1 | |||||||||
Net interest expense | (14.1) | (15.6) | |||||||||
Other expense, net | (9.5) | (6.7) | |||||||||
Total (expenses) and other income | $ | (23.6) | $ | (22.3) |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net losses on sales of businesses | $ | (6.8) | $ | (4.2) | |||||||
Other | (2.7) | (2.5) | |||||||||
Total other expense, net | $ | (9.5) | $ | (6.7) |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
INCOME BEFORE INCOME TAXES | $ | 160.6 | $ | 166.0 | |||||||
Provision for income taxes | $ | 47.3 | $ | 33.8 |
Components of Change | Change | ||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Three months ended March 31, 2024 | Organic | Total | |||||||||||||||||||||||||||||||||||
Consolidated | $ | 965.9 | $ | 0.1 | $ | — | $ | (4.7) | $ | 961.3 | (0.5) | % | (0.5) | % | |||||||||||||||||||||||||||
Domestic | 637.3 | — | — | (3.8) | 633.5 | (0.6) | % | (0.6) | % | ||||||||||||||||||||||||||||||||
International | 328.6 | 0.1 | — | (0.9) | 327.8 | (0.3) | % | (0.2) | % |
Three months ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
Segment EBITA | $ | 93.2 | $ | 79.8 | 16.8 | % | |||||||||||
Segment EBITA margin on revenue before billable expenses | 9.7 | % | 8.3 | % |
Components of Change | Change | ||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Three months ended March 31, 2024 | Organic | Total | |||||||||||||||||||||||||||||||||||
Consolidated | $ | 870.5 | $ | 0.2 | $ | (16.8) | $ | 27.5 | $ | 881.4 | 3.2 | % | 1.3 | % | |||||||||||||||||||||||||||
Domestic | 592.3 | — | (19.3) | 27.7 | 600.7 | 4.7 | % | 1.4 | % | ||||||||||||||||||||||||||||||||
International | 278.2 | 0.2 | 2.5 | (0.2) | 280.7 | (0.1) | % | 0.9 | % |
Three months ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
Segment EBITA | $ | 107.9 | $ | 98.1 | 10.0 | % | |||||||||||
Segment EBITA margin on revenue before billable expenses | 12.2 | % | 11.3 | % |
Components of Change | Change | ||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Three months ended March 31, 2024 | Organic | Total | |||||||||||||||||||||||||||||||||||
Consolidated | $ | 340.5 | $ | 1.3 | $ | (6.6) | $ | 5.0 | $ | 340.2 | 1.5 | % | (0.1) | % | |||||||||||||||||||||||||||
Domestic | 241.0 | — | (6.6) | 7.7 | 242.1 | 3.2 | % | 0.5 | % | ||||||||||||||||||||||||||||||||
International | 99.5 | 1.3 | — | (2.7) | 98.1 | (2.7) | % | (1.4) | % |
Three months ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
Segment EBITA | $ | 43.9 | $ | 45.2 | (2.9) | % | |||||||||||
Segment EBITA margin on revenue before billable expenses | 12.9 | % | 13.3 | % |
Three months ended March 31, | |||||||||||
Cash Flow Data | 2024 | 2023 | |||||||||
Net income | $ | 113.6 | $ | 132.1 | |||||||
Adjustments to reconcile to net cash used in operating activities 1 | 105.3 | 105.8 | |||||||||
Net cash used in working capital 2 | (340.3) | (695.2) | |||||||||
Changes in other non-current assets and liabilities | (36.0) | (90.3) | |||||||||
Net cash used in operating activities | $ | (157.4) | $ | (547.6) | |||||||
Net cash used in investing activities | (50.0) | (34.7) | |||||||||
Net cash used in financing activities | (227.1) | (274.3) |
Four Quarters Ended | Four Quarters Ended | |||||||||||||||||||
Financial Covenant | March 31, 2024 | Credit Agreement EBITDA Reconciliation | March 31, 2024 | |||||||||||||||||
Leverage ratio (not greater than) 1 | 3.50x | Net income available to IPG common stockholders | $ | 1,082.8 | ||||||||||||||||
Actual leverage ratio | 1.78x | Non-operating adjustments 2 | 395.7 | |||||||||||||||||
Operating income | 1,478.5 | |||||||||||||||||||
Add: | ||||||||||||||||||||
Depreciation and amortization | 315.7 | |||||||||||||||||||
Other non-cash charges reducing operating income | (1.8) | |||||||||||||||||||
Credit Agreement EBITDA 1 | $ | 1,792.4 |
Moody’s Investors Service | S&P Global Ratings | Fitch Ratings | |||||||||||||||
Short-term rating | P-2 | A-2 | F2 | ||||||||||||||
Long-term rating | Baa2 | BBB | BBB+ | ||||||||||||||
Outlook | Stable | Stable | Stable |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue before billable expenses | $ | 2,182.9 | $ | 2,176.9 | |||||||
Adjusted EBITA Reconciliation: | |||||||||||
Net Income Available to IPG Common Stockholders 1 | $ | 110.4 | $ | 126.0 | |||||||
Add Back: | |||||||||||
Provision for income taxes | 47.3 | 33.8 | |||||||||
Subtract: | |||||||||||
Total (expenses) and other income | (23.6) | (22.3) | |||||||||
Equity in net income (loss) of unconsolidated affiliates | 0.3 | (0.1) | |||||||||
Net income attributable to non-controlling interests | (3.2) | (6.1) | |||||||||
Operating Income 1 | 184.2 | 188.3 | |||||||||
Add Back: | |||||||||||
Amortization of acquired intangibles | 20.7 | 20.9 | |||||||||
Adjusted EBITA 1 | $ | 204.9 | $ | 209.2 | |||||||
Adjusted EBITA Margin on Revenue before billable expenses | 9.4 | % | 9.6 | % |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Total Number of Shares (or Units) Purchased 1 | Average Price Paid per Share (or Unit) 2 | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs 3 | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs 3 | ||||||||||||||||||||
January 1 - 31 | 186,271 | $ | 32.79 | 175,000 | $ | 74,335,459 | |||||||||||||||||
February 1 - 29 | 622,888 | $ | 32.38 | 225,000 | $ | 387,055,194 | |||||||||||||||||
March 1 - 31 | 1,529,593 | $ | 32.35 | 1,527,000 | $ | 337,660,369 | |||||||||||||||||
Total | 2,338,752 | $ | 32.39 | 1,927,000 |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit No. | Description | ||||||||||
The Interpublic Group Amended and Restated 2019 Performance Incentive Plan. | |||||||||||
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | |||||||||||
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | |||||||||||
Certification of the Chief Executive Officer and the Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350 and Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. | |||||||||||
101 | Interactive Data File for the period ended March 31, 2024. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | ||||||||||
104 | Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document and are included in Exhibit 101. |
THE INTERPUBLIC GROUP OF COMPANIES, INC. | ||||||||
By | /s/ Philippe Krakowsky | |||||||
Philippe Krakowsky Chief Executive Officer |
By | /s/ Christopher F. Carroll | |||||||
Christopher F. Carroll Senior Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer) |
/s/ Philippe Krakowsky | |||||
Philippe Krakowsky | |||||
Chief Executive Officer |
/s/ Ellen Johnson | |||||
Ellen Johnson | |||||
Executive Vice President and Chief Financial Officer |
/s/ Philippe Krakowsky | |||||
Philippe Krakowsky | |||||
Chief Executive Officer |
/s/ Ellen Johnson | |||||
Ellen Johnson | |||||
Executive Vice President and Chief Financial Officer |
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Basis of Presentation |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited Consolidated Financial Statements have been prepared by The Interpublic Group of Companies, Inc. and its subsidiaries (the “Company,” “IPG,” “we,” “us” or “our”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting interim financial information on Form 10-Q. Accordingly, they do not include certain information and disclosures required for complete financial statements. The effects of heightened macroeconomic uncertainty have impacted and may continue to impact our results of operations, cash flows and financial position. The Company’s Consolidated Financial Statements presented herein reflect the latest estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. The Company believes it has used reasonable estimates and assumptions to assess the fair values of goodwill, long-lived assets and indefinite-lived intangible assets; assessment of the annual effective tax rate; valuation of deferred income taxes and allowance for expected credit losses on future uncollectible accounts receivable. Actual results may differ from these estimates under different assumptions or conditions and further decline in macroeconomic conditions or increasing interest rates could have a negative impact on these estimates, including the fair value of certain assets. The consolidated results for interim periods are not necessarily indicative of results for the full year and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”). We conduct our business across three reportable segments described in Note 10. The three reportable segments are: Media, Data & Engagement Solutions ("MD&E"), Integrated Advertising & Creativity Led Solutions ("IA&C"), and Specialized Communications & Experiential Solutions ("SC&E"). Cost of services is comprised of the expenses of our revenue-producing reportable segments, MD&E, IA&C, and SC&E, including salaries and related expenses, office and other direct expenses and billable expenses, and includes an allocation of the centrally managed expenses from our "Corporate and Other" group. Office and other direct expenses include rent expense, professional fees, certain expenses incurred by our staff in servicing our clients and other costs directly attributable to client engagements. Selling, general and administrative expenses are primarily the unallocated expenses from Corporate and Other, excluding depreciation and amortization. Depreciation and amortization of fixed assets and intangible assets of the Company is disclosed as a separate operating expense. Restructuring charges in 2024 consist of adjustments to the Company's restructuring actions taken in 2022 and 2020, and primarily relate to real estate actions which were designed to reduce our real estate footprint and to better align our cost structure with revenue. In the opinion of management, these unaudited Consolidated Financial Statements include all adjustments, consisting only of normal and recurring adjustments necessary for a fair statement of the information for each period contained therein. Certain reclassifications and immaterial adjustments have been made to prior-period financial statements to conform to the current-period presentation, including the recast of certain prior period amounts to reflect the transfer of certain agencies between reportable segments.
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Revenue (Notes) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Disaggregation of Revenue We have three reportable segments as of March 31, 2024: MD&E, IA&C and SC&E, as further discussed in Note 10. MD&E principally generates revenue from providing 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. IA&C principally generates revenue from providing advertising, corporate and brand identity services, and strategic consulting. SC&E generates revenue from providing best-in-class global public relations and communications services, events, sports and entertainment marketing, and strategic consulting. Our agencies are located in over 100 countries, including every significant world market. Our geographic revenue breakdown is listed below.
Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
Contract assets are primarily comprised of contract incentives that are generally satisfied annually under the terms of our contracts and are transferred to accounts receivable when the right to payment becomes unconditional. Contract liabilities relate to advance consideration received from customers under the terms of our contracts primarily related to reimbursements of third-party expenses, whether we act as principal or agent, and to a lesser extent, periodic retainer fees, both of which are generally recognized shortly after billing. The majority of our contracts are for periods of one year or less with the exception of our data management contracts. For those contracts with a term of more than one year, we had approximately $715.2 of unsatisfied performance obligations as of March 31, 2024, which will be recognized as services are performed over the remaining contractual terms through 2028.
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Debt and Credit Arrangements (Notes) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Credit Arrangements | Debt and Credit Arrangements Long-Term Debt A summary of the carrying amounts of our long-term debt is listed below.
As of March 31, 2024 and December 31, 2023, the estimated fair value of the Company's long-term debt was $2,943.4 and $2,975.3, respectively. Refer to Note 11 for details. Debt Transactions 4.200% Senior Notes due 2024 Our 4.200% unsecured senior notes in aggregate principal amount of $250.0 matured on April 15, 2024. We used cash on hand to fund the principal repayment. Credit Agreement We maintain a committed corporate credit facility, originally dated as of July 18, 2008, which has been amended and restated from time to time (the "Credit Agreement"). We use our Credit Agreement to increase our financial flexibility, to provide letters of credit primarily to support obligations of our subsidiaries and to support our commercial paper program. On November 1, 2021, we amended and restated the Credit Agreement. As amended, among other things, the maturity date of the Credit Agreement was extended to November 1, 2026 and the cost structure of the Credit Agreement was changed. The Credit Agreement continues to include a required leverage ratio of not more than 3.50 to 1.00, among other customary covenants, including limitations on our liens and the liens of our consolidated subsidiaries and limitations on the incurrence of subsidiary debt. At the election of the Company, the leverage ratio may be changed to not more than 4.00 to 1.00 for four consecutive quarters, beginning with the fiscal quarter in which there is an occurrence of one or more acquisitions with an aggregate purchase price of at least $200.0. The Credit Agreement is a revolving facility, under which amounts borrowed by us or any of our subsidiaries designated under the Credit Agreement may be repaid and reborrowed, subject to an aggregate lending limit of $1,500.0, or the equivalent in other currencies. The Company has the ability to increase the commitments under the Credit Agreement from time to time by an additional amount of up to $250.0, provided the Company receives commitments for such increases and satisfies certain other conditions. The aggregate available amount of letters of credit outstanding may decrease or increase, subject to a sublimit of $50.0, or the equivalent in other currencies. Our obligations under the Credit Agreement are unsecured. As of March 31, 2024, there were no borrowings under the Credit Agreement; however, we had $9.5 of letters of credit under the Credit Agreement, which reduced our total availability to $1,490.5. We were in compliance with all of our covenants in the Credit Agreement as of March 31, 2024. Uncommitted Lines of Credit We also have uncommitted lines of credit with various banks that permit borrowings at variable interest rates and that are primarily used to fund working capital needs. We have guaranteed the repayment of some of these borrowings made by certain subsidiaries. If we lose access to these credit lines, we would have to provide funding directly to some of our operations. As of March 31, 2024, the Company had uncommitted lines of credit in an aggregate amount of $790.5, under which we had outstanding borrowings of $21.9 classified as short-term borrowings on our Consolidated Balance Sheet. The average amount outstanding during the first quarter of 2024 was $41.2 with a weighted-average interest rate of approximately 7.9%. Commercial Paper The Company is authorized to issue unsecured commercial paper up to a maximum aggregate amount outstanding at any time of $1,500.0. Borrowings under the program are supported by the Credit Agreement described above. Proceeds of the commercial paper are used for working capital and general corporate purposes, including the repayment of maturing indebtedness and other short-term liquidity needs. The maturities of the commercial paper vary but may not exceed 397 days from the date of issue. During the first quarter of 2024, there was no commercial paper activity and, as of March 31, 2024, there was no commercial paper outstanding.
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Earnings Per Share (Notes) |
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Earnings Per Share [Text Block] | Earnings Per Share The following sets forth basic and diluted earnings per common share available to IPG common stockholders.
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Supplementary Data (Notes) |
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Accrued Liabilities | Accrued Liabilities The following table presents the components of accrued liabilities.
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Other Income, Net | Other Expense, Net Results of operations for the three months ended March 31, 2024 and 2023 include certain items that are not directly associated with our revenue-producing operations.
Net losses on sales of businesses – During the three months ended March 31, 2024 and 2023, the amounts recognized were related to sales of businesses and the classification of certain assets and liabilities, consisting primarily of accounts receivable and accounts payable, as held for sale within our MD&E, IA&C, and SC&E reportable segments. The businesses sold and held for sale primarily represent unprofitable, non-strategic agencies which are expected to be sold within the next twelve months. Other – During the three months ended March 31, 2024 and 2023, the amounts recognized were primarily related to pension and postretirement costs.
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Share Repurchase Program | Share Repurchase Programs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest [Table Text Block] | Redeemable Non-controlling Interests Many of our acquisitions include provisions under which the non-controlling equity owners may require us to purchase additional interests in a subsidiary at their discretion. Redeemable non-controlling interests are adjusted quarterly, if necessary, to their estimated redemption value, but not less than their initial fair value. Any adjustments to the redemption value impact retained earnings or additional paid in capital, except for foreign currency translation adjustments. The following table presents changes in our redeemable non-controlling interests.
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Goodwill Disclosure | Goodwill is the excess purchase price remaining from an acquisition after an allocation of purchase price has been made to identifiable assets acquired and liabilities assumed based on estimated fair values. The Company transferred certain agencies between operating segments as of January 1, 2024 which resulted in certain changes to our reporting units and reportable segments. We have allocated goodwill to our reporting units using a relative fair value approach. In addition, we completed an assessment of any potential goodwill impairment for all impacted reporting units immediately prior and subsequent to the reallocation and determined that no impairment existed. The following table sets forth details of changes in goodwill by reportable segment of the Company:
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Income Taxes (Notes) |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2024, our income tax expense was negatively impacted by net losses on sales of businesses and the classification of certain assets as held for sale for which we received minimal tax benefit. The adoption of the OECD's global tax reform initiative (known as Pillar 2) did not have a material impact on the first quarter of 2024. We have various tax years under examination by tax authorities in the U.S., in various countries, and in various states and localities, such as New York City, in which we have significant business operations. It is not yet known whether these examinations will, in the aggregate, result in our paying additional taxes. We believe our tax reserves are adequate in relation to the potential for additional assessments in each of the jurisdictions in which we are subject to taxation. We regularly assess the likelihood of additional tax assessments in those jurisdictions and, if necessary, adjust our reserves as additional information or events require. With respect to all tax years open to examination by U.S. federal, various state and local, and non-U.S. tax authorities, we currently anticipate that total unrecognized tax benefits will decrease by an amount between $105.0 and $115.0 in the next twelve months, a portion of which will affect our effective income tax rate, primarily as a result of the settlement of tax examinations and the lapsing of statutes of limitations. This net decrease is related to various items of income and expense, primarily transfer pricing adjustments. We are effectively settled with respect to U.S. federal income tax audits through 2019. With limited exceptions, we are no longer subject to state and local income tax audits for years prior to 2015 or non-U.S. income tax audits for years prior to 2011.
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Incentive Compensation Plans (Notes) |
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Incentive Compensation Plans | Incentive Compensation Plans We issue stock-based compensation and cash awards to our employees under various plans established by the Compensation and Leadership Talent Committee of the Board of Directors (the "Compensation Committee") and approved by our stockholders. We issued the following stock-based awards under the 2019 Performance Incentive Plan (the "2019 PIP") during the three months ended March 31, 2024.
During the three months ended March 31, 2024, the Compensation Committee granted performance cash awards under the 2019 PIP and restricted cash awards under the 2020 Restricted Cash Plan with a total annual target value of $1.4 and $13.6, respectively. Cash awards are expensed over the vesting period, which is typically three years for performance cash awards and two years or three years for restricted cash awards.
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Accumulated Other Comprehensive Loss, Net of Tax (Notes) |
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Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Loss, Net of Tax The following tables present the changes in accumulated other comprehensive loss, net of tax, by component.
Amounts reclassified from accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2024 and 2023 are as follows:
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Employee Benefits (Notes) |
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Employee Benefits | Employee Benefits We have a defined benefit pension plan that covers certain U.S. employees (the “Domestic Pension Plan”). We also have numerous funded and unfunded plans outside the U.S. The Interpublic Limited Pension Plan in the U.K. is a defined benefit plan and is our most material foreign pension plan in terms of the benefit obligation and plan assets. Some of our domestic and foreign subsidiaries provide postretirement health benefits and life insurance to eligible employees and, in certain cases, their dependents. The domestic postretirement benefit plan is our most material postretirement benefit plan in terms of the benefit obligation. Certain immaterial foreign pension and postretirement benefit plans have been excluded from the table below. In December 2023, the U.K. Pension Plan entered into an agreement with an insurance company to purchase a group annuity, or "buy-in", that matches the plans future projected benefit obligations to covered participants. As part of the annuity purchase contract, the U.K. Pension Plan has the option to complete a "buy-out", which would transfer all liabilities of the plan to the insurer, which the Company anticipates to be completed in the first half of 2025. The non-cash settlement charge, net of tax, associated with the transaction is currently estimated to be approximately $180.0 to $200.0. The components of net periodic cost for the Domestic Pension Plan, the significant foreign pension plans and the domestic postretirement benefit plan are listed below.
The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the Consolidated Statements of Operations. During the three months ended March 31, 2024, we contributed $0.0 and $2.9 of cash to our domestic and foreign pension plans, respectively. For the remainder of 2024, we expect to contribute approximately $0.0 and $7.0 of cash to our domestic and foreign pension plans, respectively.
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Segment Information (Notes) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure | Segment Information As of March 31, 2024, we have three reportable segments: MD&E, IA&C, and SC&E. We also report results for the "Corporate and other" group. 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 and Acxiom, 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 IPG DXTRA Health. Certain prior period amounts, wherever applicable, have been recast to reflect the transfer of certain agencies between our reportable segments. 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.
1 Non-cash lease impairment costs were comprised of $0.3 at IA&C and $0.3 at SC&E for the three months ended March 31, 2024. Non-cash lease impairment costs were comprised of $1.2 at SC&E for the three months ended March 31, 2023. 2 Segment 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 (loss) of unconsolidated affiliates, net income attributable to non-controlling interests and amortization of acquired intangibles. 3 Excludes amortization of acquired intangibles.
The following table presents the reconciliation of segment EBITA to Income before income taxes.
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Fair Value Measurements (Notes) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Authoritative guidance for fair value measurements establishes a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:
Financial Instruments that are Measured at Fair Value on a Recurring Basis We primarily apply the market approach to determine the fair value of financial instruments that are measured at fair value on a recurring basis. There were no changes to our valuation techniques used to determine the fair value of financial instruments during the three months ended March 31, 2024. The following tables present information about our financial instruments measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value.
1Contingent acquisition obligations includes deferred acquisition payments and unconditional obligations to purchase additional non-controlling equity shares of consolidated subsidiaries. Fair value measurement of the obligations is based upon actual and projected operating performance targets as specified in the related agreements. The increase in this balance of $6.3 from December 31, 2023 to March 31, 2024 is primarily due to the exercises of redeemable non-controlling interest. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. Financial Instruments that are not Measured at Fair Value on a Recurring Basis The following table presents information about our financial instruments that are not measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.
Our long-term debt is comprised of senior notes and other notes payable. The fair value of our senior notes, which are traded over-the-counter, is based on quoted prices in markets that are not active. Therefore, these senior notes are classified as Level 2. Our other notes payable are not actively traded, and their fair value is not solely derived from readily observable inputs. The fair value of our other notes payable is determined based on a discounted cash flow model and other proprietary valuation methods, and therefore is classified as Level 3. See Note 3 for further information on our long-term debt. The discount rates used as significant unobservable inputs in the Level 3 fair value measurements of our contingent acquisition obligations and long-term debt as of March 31, 2024 ranged from 5.0% to 6.0%. Non-financial Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis, primarily goodwill (Level 3), intangible assets, and property and equipment. Accordingly, these assets are not measured and adjusted to fair value on an ongoing basis but are subject to periodic evaluations for potential impairment.
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Commitments and Contingencies (Notes) |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees As discussed in our 2023 Annual Report, we have guaranteed certain obligations of our subsidiaries relating principally to operating leases and uncommitted lines of credit of certain subsidiaries. As of March 31, 2024 and December 31, 2023, the amount of parent company guarantees on lease obligations was $656.0 and $678.1, respectively, the amount of parent company guarantees primarily relating to uncommitted lines of credit was $267.6 and $255.7, respectively, and the amount of parent company guarantees related to daylight overdrafts, primarily utilized to manage intra-day overdrafts due to timing of transactions under cash pooling arrangements without resulting in incremental borrowings, was $84.1 and $85.5, respectively. In the event of non-payment by the applicable subsidiary of the obligations covered by a guarantee, we would be obligated to pay the amounts covered by that guarantee. As of both March 31, 2024, and December 31, 2023 there were no material assets pledged as security for such parent company guarantees. Legal Matters We are involved in various legal proceedings, and subject to investigations, inspections, audits, inquiries and similar actions by governmental authorities arising in the normal course of business. The types of allegations that arise in connection with such legal proceedings vary in nature, but can include claims related to contract, employment, tax and intellectual property matters. We evaluate all cases each reporting period and record liabilities for losses from legal proceedings when we determine that it is probable that the outcome in a legal proceeding will be unfavorable and the amount, or potential range, of loss can be reasonably estimated. In certain cases, we cannot reasonably estimate the potential loss because, for example, the litigation is in its early stages. While any outcome related to litigation or such governmental proceedings in which we are involved cannot be predicted with certainty, management believes that the outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial condition, results of operations or cash flows.
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Recent Accounting Standards (Notes) |
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Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Accounting pronouncements not listed below were assessed and determined to be not applicable or are expected to have minimal impact on our Consolidated Financial Statements. Income Taxes In December 2023, the Financial Accounting Standards Board issued amended guidance to enhance the transparency and decision usefulness of income tax disclosures by requiring disaggregated information about an entity's effective tax rate reconciliation, as well as information on taxes paid. This amended guidance is effective for annual periods beginning after December 15, 2024. We are currently evaluating the impact on our Consolidated Financial Statements. Segment Reporting In November 2023, the Financial Accounting Standards Board issued amended guidance on segment reporting to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analysis. This amended guidance is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. We are currently evaluating the impact on our Consolidated Financial Statements.
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue Principal Geographic Markets | Our agencies are located in over 100 countries, including every significant world market. Our geographic revenue breakdown is listed below.
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Contract Balances | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
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Debt and Credit Arrangements (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Carrying Amounts and Fair Values of Long-term Debt | A summary of the carrying amounts of our long-term debt is listed below.
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Earnings Per Share (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following sets forth basic and diluted earnings per common share available to IPG common stockholders.
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Supplementary Data (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | The following table presents the components of accrued liabilities.
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Other Income (Expense), Net | Results of operations for the three months ended March 31, 2024 and 2023 include certain items that are not directly associated with our revenue-producing operations.
Net losses on sales of businesses – During the three months ended March 31, 2024 and 2023, the amounts recognized were related to sales of businesses and the classification of certain assets and liabilities, consisting primarily of accounts receivable and accounts payable, as held for sale within our MD&E, IA&C, and SC&E reportable segments. The businesses sold and held for sale primarily represent unprofitable, non-strategic agencies which are expected to be sold within the next twelve months. Other – During the three months ended March 31, 2024 and 2023, the amounts recognized were primarily related to pension and postretirement costs.
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Redeemable Noncontrolling Interest [Table Text Block] | Redeemable Non-controlling Interests Many of our acquisitions include provisions under which the non-controlling equity owners may require us to purchase additional interests in a subsidiary at their discretion. Redeemable non-controlling interests are adjusted quarterly, if necessary, to their estimated redemption value, but not less than their initial fair value. Any adjustments to the redemption value impact retained earnings or additional paid in capital, except for foreign currency translation adjustments. The following table presents changes in our redeemable non-controlling interests.
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Incentive Compensation Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation Awards | We issued the following stock-based awards under the 2019 Performance Incentive Plan (the "2019 PIP") during the three months ended March 31, 2024.
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Accumulated Other Comprehensive Loss, Net of Tax (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss, Net of Tax The following tables present the changes in accumulated other comprehensive loss, net of tax, by component.
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Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2024 and 2023 are as follows:
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Employee Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Costs | The components of net periodic cost for the Domestic Pension Plan, the significant foreign pension plans and the domestic postretirement benefit plan are listed below.
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized financial information concerning reportable segments | Summarized financial information concerning our reportable segments is shown in the following table.
1 Non-cash lease impairment costs were comprised of $0.3 at IA&C and $0.3 at SC&E for the three months ended March 31, 2024. Non-cash lease impairment costs were comprised of $1.2 at SC&E for the three months ended March 31, 2023. 2 Segment 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 (loss) of unconsolidated affiliates, net income attributable to non-controlling interests and amortization of acquired intangibles. 3 Excludes amortization of acquired intangibles.
The following table presents the reconciliation of segment EBITA to Income before income taxes.
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information about our financial instruments measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value.
1Contingent acquisition obligations includes deferred acquisition payments and unconditional obligations to purchase additional non-controlling equity shares of consolidated subsidiaries. Fair value measurement of the obligations is based upon actual and projected operating performance targets as specified in the related agreements. The increase in this balance of $6.3 from December 31, 2023 to March 31, 2024 is primarily due to the exercises of redeemable non-controlling interest. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities.
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[1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following table presents information about our financial instruments that are not measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.
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Revenue Contract Balances (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accounts receivable, net of allowance of $45.1 and $46.4, respectively | $ 4,329.6 | $ 5,768.8 |
Accounts receivable, billable to clients | 2,145.0 | 2,229.2 |
Contract assets | 59.1 | 68.6 |
Contract liabilities (deferred revenue) | 707.7 | $ 684.7 |
Revenue, Remaining Performance Obligation, Amount | $ 715.2 |
Commercial Paper (Details) $ in Millions |
3 Months Ended |
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Mar. 31, 2024
USD ($)
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Debt Disclosure [Abstract] | |
Commercial paper borrowing capacity | $ 1,500.0 |
Debt Instrument, Term | 397 days |
Commercial Paper, Average Outstanding | $ 0.0 |
Commercial Paper | $ 0.0 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Earnings Per Share [Abstract] | ||
Net income available to IPG common stockholders | $ 110.4 | $ 126.0 |
Weighted-average number of common shares outstanding, Basic | 378.4 | 385.8 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 2.2 | 1.6 |
Weighted-average number of common shares outstanding, Diluted | 380.6 | 387.4 |
Earnings per share, Basic | $ 0.29 | $ 0.33 |
Earnings per share, Diluted | $ 0.29 | $ 0.33 |
Supplementary Data Accrued Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accrued Liabilities [Abstract] | ||
Salaries, benefits and related expenses | $ 316.9 | $ 507.5 |
Income Taxes payable | 35.9 | 56.8 |
Interest | 60.7 | 40.2 |
Office and related expenses | 20.0 | 22.3 |
Acquisition obligations | 9.4 | 2.9 |
Restructuring charges | 0.2 | 0.6 |
Other | 84.8 | 75.5 |
Total Accrued Liabilities | $ 527.9 | $ 705.8 |
Supplementary Data Other Expense, Net (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other Expense, Net [Abstract] | ||
Net losses on sales of businesses | $ (6.8) | $ (4.2) |
Other Expense, Net, Other | 2.7 | 2.5 |
Other (Expense) Income, Net | $ (9.5) | $ (6.7) |
Supplementary Data Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Feb. 07, 2024 |
Feb. 08, 2023 |
|
Disclosure of Repurchase Agreements [Abstract] | ||||
Stock Repurchase Program, Authorized Amount | $ 320.0 | $ 350.0 | ||
Stock Repurchased During Period, Shares | 1.9 | 2.2 | ||
Payments for Repurchase of Common Stock | $ 62.4 | $ 77.8 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 32.41 | $ 35.50 | ||
Excise and Sales Taxes | $ 0.5 | |||
Share Repurchase Program. Remaining Authroized, Amount, 2023 Share Repurchase Program | 17.7 | |||
Share Repurchase Program. Remaining Authorized, Amount, 2024 Share Repurchase Program | $ 320.0 |
Supplementary Data Redeemable Noncontrolling Interests (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | $ 36,000,000.0 | $ 38,400,000 | $ 42,300,000 | $ 38,300,000 |
Noncontrolling interest related to redeemable noncontrolling interests | (300,000) | 300,000 | ||
Additions | 0 | 0 | ||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (6,100,000) | (400,000) | ||
Redemption value adjustments | 0.0 | 0 | ||
Temporary Equity, Foreign Currency Translation Adjustments | $ 100,000 | $ 200,000 |
Income Taxes Change in Unrecognized Tax Benefits (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
---|---|
Minimum [Member] | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Decrease in unrecognized tax benefits is reasonably possible | $ 105.0 |
Maximum [Member] | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Decrease in unrecognized tax benefits is reasonably possible | $ 115.0 |
Restructuring Charges (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0.6 | $ 1.6 |
Restructuring charges | $ 0.6 | $ 1.6 |
Restructuring Charges Segments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0.6 | $ 1.6 |
IA&C | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.3 | 0.3 |
Lease impairment costs | 0.3 | |
SC&E | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.3 | 1.3 |
Lease impairment costs | 0.3 | 1.2 |
Corporate and Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.0 | 0.0 |
MD&E | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0.0 | $ 0.0 |
Restructuring Charges 2020 Plan Restructuring Activity (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0.6 | $ 1.6 |
Incentive Compensation Plans Stock-based Compensation Awards (Details) shares in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Restricted stock (units) | |
Incentive Compensation Plans | |
Granted awards | 1.3 |
Weighted average grant date fair value | $ / shares | $ 31.46 |
Performance-based stock (shares) | |
Incentive Compensation Plans | |
Granted awards | 2.8 |
Weighted average grant date fair value | $ / shares | $ 27.55 |
Total stock-based compensation awards | |
Incentive Compensation Plans | |
Granted awards | 4.1 |
Incentive Compensation Plans Plan Information (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Share-Based Payment Arrangement [Abstract] | |
Performance cash awards granted during the period target value | $ 1.4 |
Restricted cash awards granted during the period target value | $ 13.6 |
Performance based cash award vesting period | 3 years |
Restricted cash awards vesting period floor | 2 years |
Cash awards vesting period | 3 years |
Accumulated Other Comprehensive Loss, Net of Tax Reclassification of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Net (Gain) Loss on derivative instruments | $ (0.9) | $ (0.4) |
Amortization of defined benefit pension and postretirement plan items | 1.9 | 1.7 |
Tax effect | (0.3) | (0.3) |
Reclassifications from accumulated other comprehensive loss to earnings, net of tax | $ 0.7 | $ 1.0 |
Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|||
Fair value assets and liabilities measured on recurring and nonrecurring basis | ||||
Contingent acquisition liability, total change | $ 6.3 | |||
Long-term Debt, Fair Value | $ 2,943.4 | $ 2,975.3 | ||
Discount rate floor contingent acquisition obligations | 5.00% | |||
Discount rate ceiling contingent acquisition obligations | 6.00% | |||
Level 1 | ||||
Fair value assets and liabilities measured on recurring and nonrecurring basis | ||||
Cash equivalents | $ 658.5 | 1,521.5 | ||
Contingent acquisition obligations | [1] | 0.0 | 0.0 | |
Long-term Debt, Fair Value | 0.0 | 0.0 | ||
Level 2 | ||||
Fair value assets and liabilities measured on recurring and nonrecurring basis | ||||
Cash equivalents | 0.0 | 0.0 | ||
Contingent acquisition obligations | [1] | 0.0 | 0.0 | |
Long-term Debt, Fair Value | 2,942.4 | 2,974.5 | ||
Level 3 | ||||
Fair value assets and liabilities measured on recurring and nonrecurring basis | ||||
Cash equivalents | 0.0 | 0.0 | ||
Contingent acquisition obligations | [1] | 9.4 | 3.1 | |
Long-term Debt, Fair Value | 1.0 | 0.8 | ||
Fair Value, Total [Member] | ||||
Fair value assets and liabilities measured on recurring and nonrecurring basis | ||||
Cash equivalents | 658.5 | 1,521.5 | ||
Contingent acquisition obligations | [1] | 9.4 | 3.1 | |
Long-term Debt, Fair Value | $ 2,943.4 | $ 2,975.3 | ||
|
Commitments and Contingencies (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Lease guarantees | $ 656.0 | $ 678.1 |
Credit facility guarantees | 267.6 | 255.7 |
Cash pooling guarantees | 84.1 | $ 85.5 |
Assets pledged as security for parent company guarantees | $ 0.0 |
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