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Segment Information
12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
The Company’s segment reporting is consistent with the current manner of how the Chief Operating Decision Maker (“CODM”) and the Board of Directors view the business. The Company is focused on expanding its capabilities in database marketing and data analytics in order to position the Company for future business development efforts and revenue growth.
In order to position this strategic focus along the lines of how the CODM and management will base their business decisions, the Company reports two segments. Decisions regarding allocation of resources are made and will be made based not only on the individual operating results of the subsidiaries but also on the overall performance of the reportable segments. These reportable segments are the aggregation of various reporting segments.
The Company reports in one reportable Strategic Marketing Services segment plus two "other" segments, Performance Marketing Services and corporate. The segments are as follows:
The Strategic Marketing Services segment consists of integrated marketing consulting services firms that offer a full complement of marketing, activation and consulting services including advertising and media, marketing communications including direct marketing, public relations, corporate communications, market research, corporate identity and branding, interactive marketing and sales promotion. Each of the entities within the Strategic Marketing Services Group share similar economic characteristics, specifically related to the nature of their respective services, the manner in which the services are provided and the similarity of their respective customers. Due to the similarities in these businesses, they exhibit similar long term financial performance and have been aggregated together.
The Performance Marketing Services segment includes our firms that provide consumer insights and analytics to satisfy the growing need for targetable, measurable solutions or cost effective means of driving return on marketing investment. These services interface directly with the consumer of a client’s product or service. Such services include the design, development, research and implementation of consumer service, media planning and buying and direct marketing initiatives. In addition, services include consumer activation, investor relations and general public insights.
The significant accounting policies of these segments are the same as those described in the summary of significant accounting policies included in the notes to the consolidated financial statements. The Company continues to evaluate its Corporate Group and the services provided by the Corporate Group to the operating segments. The Company will continue to evaluate the services and amount of time spent directly on the operating segments business operations, and adjust accordingly.
 
For the year ended December 31, 2014
  
Strategic Marketing Services
 
Performance Marketing Services
 
Corporate
 
Total
Revenue
$
954,211

 
$
269,301

 
$

 
$
1,223,512

Cost of services sold
617,914

 
180,604

 

 
798,518

Office and general expenses
200,716

 
45,224

 
44,133

 
290,073

Depreciation and amortization
24,158

 
21,229

 
1,785

 
47,172

Operating profit (loss)
111,423

 
22,244

 
(45,918
)
 
87,749

Other income (expense):
  

 
  

 
  

 
  

Other income, net
  

 
  

 
  

 
689

Foreign exchange loss
  

 
  

 
  

 
(18,482
)
Interest expense and finance charges, net
 
 
 
 
 
 
(54,847
)
Income from continuing operations before income taxes, equity in non-consolidated affiliates
  

 
  

 
  

 
15,109

Income tax expense
 
 
 
 
 
 
12,422

Income from continuing operations before equity in non-consolidated affiliates
  

 
  

 
  

 
2,687

Equity in earnings of non-consolidated affiliates
 
 
 
 
 
 
1,406

Income from continuing operations
  

 
  

 
  

 
4,093

Loss from discontinued operations attributable to MDC Partners Inc., net of taxes
 
 
 
 
 
 
(21,260
)
Net loss
  

 
  

 
  

 
(17,167
)
Net income attributable to noncontrolling interests
(6,943
)
 
53

 

 
(6,890
)
Net loss attributable to MDC Partners Inc.
 
 
 
 
 
 
$
(24,057
)
Stock-based compensation
$
9,616

 
$
3,553

 
$
4,527

 
$
17,696

Capital expenditures from continuing operations
$
22,452

 
$
2,627

 
$
1,337

 
$
26,416

Goodwill and intangibles
$
560,505

 
$
376,989

 
$

 
$
937,494

Total assets
$
891,341

 
$
476,795

 
$
280,754

 
$
1,648,890

 
For the year ended December 31, 2013
  
Strategic Marketing Services
 
Performance Marketing Services
 
Corporate
 
Total
Revenue
$
836,936

 
$
225,542

 
$

 
$
1,062,478

Cost of services sold
535,085

 
169,884

 

 
704,969

Office and general expenses
190,699

 
38,551

 
126,714

 
355,964

Depreciation and amortization
24,210

 
10,535

 
1,394

 
36,139

Operating profit (loss)
86,942

 
6,572

 
(128,108
)
 
(34,594
)
Other income (expense):
  

 
  

 
  

 
  

Other income, net
  

 
  

 
  

 
2,531

Foreign exchange loss
  

 
  

 
  

 
(5,516
)
Interest expense, finance charges, and loss on redemption of notes,net
 
 
 
 
 
 
(100,271
)
Loss from continuing operations before income taxes, equity in non-consolidated affiliates
  

 
  

 
  

 
(137,850
)
Income tax benefit
 
 
 
 
 
 
(4,367
)
Loss from continuing operations before equity in non-consolidated affiliates
  

 
  

 
  

 
(133,483
)
Equity in earnings of non-consolidated affiliates
 
 
 
 
 
 
281

Loss from continuing operations
  

 
  

 
  

 
(133,202
)
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes
 
 
 
 
 
 
(9,200
)
Net loss
  

 
  

 
  

 
(142,402
)
Net income attributable to noncontrolling interests
(6,150
)
 
(311
)
 

 
(6,461
)
Net loss attributable to MDC Partners Inc.
 
 
 
 
 
 
$
(148,863
)
Stock-based compensation
$
7,657

 
$
3,017

 
$
89,731

 
$
100,405

Capital expenditures from continuing operations
$
12,338

 
$
2,339

 
$
2,132

 
$
16,809

Goodwill and intangibles
$
525,412

 
$
275,183

 
$

 
$
800,595

Total assets
$
841,362

 
$
379,391

 
$
204,474

 
$
1,425,227

 
For the year ended December 31, 2012
  
Strategic Marketing Services
 
Performance Marketing Services
 
Corporate
 
Total
Revenue
$
751,464

 
$
221,509

 
$

 
$
972,973

Cost of services sold
504,407

 
162,922

 

 
667,329

Office and general expenses
193,758

 
48,561

 
38,847

 
281,166

Depreciation and amortization
27,807

 
13,298

 
1,342

 
42,447

Operating profit (loss)
25,492

 
(3,272
)
 
(40,189
)
 
(17,969
)
Other income (expense):
  

 
  

 
  

 
  

Other income, net
  

 
  

 
  

 
450

Foreign exchange loss
  

 
  

 
  

 
(1,138
)
Interest expense and finance charges, net
 
 
 
 
 
 
(45,871
)
Loss from continuing operations before income taxes, equity in non-consolidated affiliates
  

 
  

 
  

 
(64,528
)
Income tax expense
 
 
 
 
 
 
9,553

Loss from continuing operations before equity in non-consolidated affiliates
  

 
  

 
  

 
(74,081
)
Equity in earnings of non-consolidated affiliates
 
 
 
 
 
 
633

Loss from continuing operations
  

 
  

 
  

 
(73,448
)
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes
 
 
 
 
 
 
(5,128
)
Net loss
  

 
  

 
  

 
(78,576
)
Net income attributable to noncontrolling interests
(6,326
)
 
(537
)
 

 
(6,863
)
Net loss attributable to MDC Partners Inc.
 
 
 
 
 
 
$
(85,439
)
Stock-based compensation
$
9,186

 
$
8,227

 
$
14,784

 
$
32,197

Capital expenditures from continuing operations
$
11,600

 
$
4,555

 
$
382

 
$
16,537

Goodwill and intangibles
$
542,573

 
$
240,741

 
$

 
$
783,314

Total assets
$
849,716

 
$
374,982

 
$
120,247

 
$
1,344,945


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

 
  

 
  

 
  

2014
$
48,884

 
$
7,099

 
$
4,257

 
$
60,240

2013
$
44,360

 
$
5,424

 
$
2,287

 
$
52,071

Goodwill and Intangible Assets
  

 
  

 
  

 
  

2014
$
759,035

 
$
154,349

 
$
24,110

 
$
937,494

2013
$
720,373

 
$
80,222

 
$

 
$
800,595


A summary of the Company’s revenue as at December 31 is set forth in the following table.
 
United States
 
Canada
 
Other
 
Total
Revenue:
  

 
  

 
  

 
  

2014
$
993,474

 
$
150,390

 
$
79,648

 
$
1,223,512

2013
$
870,525

 
$
135,630

 
$
56,323

 
$
1,062,478

2012
$
781,210

 
$
148,063

 
$
43,700

 
$
972,973