☒ | ANNUAL 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 |
Delaware | 13-1024020 | |||||||
(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 | ||||||
Common Stock, par value $0.10 per share | IPG | The New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ¨ | |||||||||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Page | |||||||||
Item 1. | |||||||||
Item 1A. | |||||||||
Item 1B. | |||||||||
Item 2. | |||||||||
Item 3. | |||||||||
Item 4. | |||||||||
Item | |||||||||
Item 6. | [Reserved] | ||||||||
Item 7. | |||||||||
Item 7A. | |||||||||
Item 8. | |||||||||
Item 9. | |||||||||
Item 9A. | |||||||||
Item 9B. | |||||||||
Item 9C. | |||||||||
Item 10. | |||||||||
Item 11. | |||||||||
Item 12. | |||||||||
Item 13. | |||||||||
Item 14. | |||||||||
Item 15. | |||||||||
Item 16. |
Item 1. | Business |
•Investment in leading talent: We believe our continued ability to attract and develop top talent and to be the industry’s employer of choice for an increasingly diverse workforce have been key differentiators for IPG. We continue to acquire and develop top strategic, creative and digital talent from a range of backgrounds. •Growing our data, commerce and precision marketing capabilities: Our investments in talent and technology - growing data, emerging media and platform capabilities - promise to drive further growth in this dynamic sector of our business. The world in which we live is increasingly digital, and more than ever clients need audience-led thinking to solve for a widening set of business problems and opportunities. •Reinventing healthcare marketing: We have enhanced and strengthened our position to deliver a comprehensive suite of services and global reach for healthcare clients. To do so, we have attracted and developed the industry’s most awarded and experienced talent, including scientists, strategists, creatives and engagement specialists across the entire healthcare marketing spectrum, enabling us to deliver healthcare information at speed, in ways that are highly personal, culturally relevant, as well as respectful of privacy. •Integrated marketing solutions: A differentiating aspect of our business is our utilization of Open Architecture solutions that integrate the best talent from our strong agency brands to fulfill the needs of our clients. |
As of December 31, 2022 | |||||
Total | 58,400 | ||||
Domestic | 25,000 | ||||
International | 33,400 | ||||
United Kingdom | 5,400 | ||||
Continental Europe | 6,700 | ||||
Asia Pacific | 10,300 | ||||
Latin America | 7,000 | ||||
Other | 4,000 |
Consolidated Total Revenues for the Three Months Ended | |||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
(Amounts in Millions) | % of Total | % of Total | % of Total | ||||||||||||||||||||||||||||||||
March 31 | $ | 2,568.5 | 23.5% | $ | 2,257.0 | 22.0% | $ | 2,359.8 | 26.0% | ||||||||||||||||||||||||||
June 30 | 2,735.7 | 25.1% | 2,509.6 | 24.6% | 2,025.7 | 22.4% | |||||||||||||||||||||||||||||
September 30 | 2,637.7 | 24.1% | 2,542.0 | 24.8% | 2,125.5 | 23.5% | |||||||||||||||||||||||||||||
December 31 | 2,985.9 | 27.3% | 2,932.1 | 28.6% | 2,550.0 | 28.1% | |||||||||||||||||||||||||||||
$ | 10,927.8 | $ | 10,240.7 | $ | 9,061 |
Consolidated Total Revenues for the Three Months Ended | |||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||
(Amounts in Millions) | % of Total | % of Total | % of Total | ||||||||||||||
March 31 | $ | 2,361.2 | 23.0% | $ | 2,169.1 | 22.3% | $ | 2,063.8 | 22.8% | ||||||||
June 30 | 2,520.2 | 24.7% | 2,391.8 | 24.6% | 2,185.8 | 24.2% | |||||||||||
September 30 | 2,438.1 | 23.9% | 2,297.5 | 23.7% | 2,208.2 | 24.4% | |||||||||||
December 31 | 2,901.8 | 28.4% | 2,856.0 | 29.4% | 2,589.8 | 28.6% | |||||||||||
$ | 10,221.3 | $ | 9,714.4 | $ | 9,047.6 |
Name | Age | Office | ||||||||||||
Executive Vice President | ||||||||||||||
Andrew Bonzani | 59 | Executive Vice President and General Counsel | ||||||||||||
Christopher F. Carroll | Senior Vice President, Controller and Chief Accounting Officer | |||||||||||||
Item 1A. | Risk Factors |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs 1 | ||||||||||
October 1 - 31 | — | $ | — | — | $ | 338,421,933 | |||||||
November 1 - 30 | — | $ | — | — | $ | 338,421,933 | |||||||
December 1 - 31 | — | $ | — | — | $ | 338,421,933 | |||||||
Total | — | $ | — | — |
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 | ||||||||||||||||||||
October 1 - 31 | 833,385 | $ | 27.34 | 824,727 | $ | 155,992,682 | |||||||||||||||||
November 1 - 30 | 946,467 | $ | 30.68 | 945,657 | $ | 126,984,596 | |||||||||||||||||
December 1 - 31 | 1,427,778 | $ | 32.90 | 1,425,000 | $ | 80,105,214 | |||||||||||||||||
Total | 3,207,630 | $ | 30.80 | 3,195,384 |
1The total number of shares of our common stock purchased includes shares withheld under the terms of grants under employee stock-based compensation plans to offset tax withholding obligations that arose upon vesting and release of restricted shares (the “Withheld Shares”). We repurchased 8,658 Withheld Shares in October 2022; 810 Withheld Shares in November 2022; and 2,778 Withheld Shares in December 2022, for a total of 12,246 Withheld Shares during the three-month period. 2The average price per share for each of the months in the fiscal quarter and for the three-month period was calculated by dividing (a) the sum for the applicable period of the aggregate value of the tax withholding obligations and the aggregate amount we paid for shares acquired under our share repurchase program, described in Note 7 of Item 8, Financial Statements and Supplementary Data, by (b) the sum of the number of Withheld Shares and the number of shares acquired in our share repurchase program. On February 10, 2022, the Company's Board of Directors reauthorized a program to repurchase, from time to time, up to $400.0 million of our common stock. On February 8, 2023, the Board authorized a share repurchase program to repurchase from time to time up to $350.0, excluding fees, of our common stock, which was in addition to any amounts remaining under the 2022 share repurchase program. We may effect such repurchases through open market purchases, trading plans established in accordance with U.S. Securities and Exchange Commission ("SEC") rules, derivative transactions or other means. We expect to continue to repurchase our common stock in future periods, although the timing and amount of the repurchases will depend on market conditions and other funding requirements. There are no expiration dates associated with the share repurchase programs. |
Years ended December 31, | |||||||||||||||||||
Statement of Operations Data | 2019 | 2018 1 | 2017 | 2016 | 2015 | ||||||||||||||
Revenue: | |||||||||||||||||||
Net revenue | $ | 8,625.1 | $ | 8,031.6 | $ | 7,473.5 | $ | 7,452.3 | N/A | ||||||||||
Billable expenses | 1,596.2 | 1,682.8 | 1,574.1 | 1,603.9 | N/A | ||||||||||||||
Total Revenue | 10,221.3 | 9,714.4 | 9,047.6 | 9,056.2 | $ | 7,613.8 | |||||||||||||
Operating Expenses: | |||||||||||||||||||
Salaries and related expenses | 5,568.8 | 5,298.3 | 4,990.7 | 4,942.2 | 4,765.8 | ||||||||||||||
Office and other direct expenses 2 | 1,564.1 | 1,355.1 | 1,269.2 | 1,274.6 | 1,683.3 | ||||||||||||||
Billable expenses | 1,596.2 | 1,682.8 | 1,574.1 | 1,603.9 | N/A | ||||||||||||||
Cost of services 2 | 8,729.1 | 8,336.2 | 7,834.0 | 7,820.7 | 6,449.1 | ||||||||||||||
Selling, general and administrative expenses 3 | 93.8 | 166.5 | 118.5 | 138.6 | 133.8 | ||||||||||||||
Depreciation and amortization 4 | 278.5 | 202.9 | 157.1 | 160.2 | 156.9 | ||||||||||||||
Restructuring charges 5 | 33.9 | 0.0 | (0.4 | ) | 0.3 | (0.8 | ) | ||||||||||||
Total operating expenses | 9,135.3 | 8,705.6 | 8,109.2 | 8,119.8 | 6,739.0 | ||||||||||||||
Operating income | 1,086.0 | 1,008.8 | 938.4 | 936.4 | 874.8 | ||||||||||||||
Provision for income taxes 6 | 204.8 | 199.2 | 271.3 | 196.9 | 282.8 | ||||||||||||||
Net income 7 | 673.9 | 637.7 | 570.4 | 629.0 | 480.5 | ||||||||||||||
Net income available to IPG common stockholders 7 | 656.0 | 618.9 | 554.4 | 605.0 | 454.6 | ||||||||||||||
Earnings per share available to IPG common stockholders: | |||||||||||||||||||
Basic 8 | $ | 1.70 | $ | 1.61 | $ | 1.42 | $ | 1.52 | $ | 1.11 | |||||||||
Diluted 8 | $ | 1.68 | $ | 1.59 | $ | 1.40 | $ | 1.48 | $ | 1.09 | |||||||||
Weighted-average number of common shares outstanding: | |||||||||||||||||||
Basic | 386.1 | 383.3 | 389.6 | 397.9 | 408.1 | ||||||||||||||
Diluted | 391.2 | 389.0 | 397.3 | 408.0 | 415.7 | ||||||||||||||
Dividends declared per common share | $ | 0.94 | $ | 0.84 | $ | 0.72 | $ | 0.60 | $ | 0.48 | |||||||||
Other Financial Data | |||||||||||||||||||
Net cash provided by operating activities | $ | 1,529.2 | $ | 565.1 | $ | 881.8 | $ | 512.8 | $ | 688.5 | |||||||||
As of December 31, | |||||||||||||||||||
Balance Sheet Data | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||
Cash and cash equivalents and marketable securities | $ | 1,192.2 | $ | 673.5 | $ | 791.0 | $ | 1,100.6 | $ | 1,509.7 | |||||||||
Total assets | 17,751.9 | 15,620.3 | 12,704.7 | 12,511.8 | 12,585.1 | ||||||||||||||
Total debt | 3,326.3 | 3,734.0 | 1,372.5 | 1,690.3 | 1,745.1 | ||||||||||||||
Total liabilities | 14,761.6 | 13,019.6 | 10,206.3 | 10,168.6 | 10,331.4 | ||||||||||||||
Total stockholders’ equity | 2,825.6 | 2,432.8 | 2,246.3 | 2,090.4 | 2,001.8 |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Years ended December 31, | Change | ||||||||||||||||||||||||||||
2022 vs 2021 | 2021 vs 2020 | ||||||||||||||||||||||||||||
Statement of Operations Data | 2022 | 2021 | 2020 | % Increase/ (Decrease) | % Increase/ (Decrease) | ||||||||||||||||||||||||
REVENUE: | |||||||||||||||||||||||||||||
Revenue before billable expenses | $ | 9,449.4 | $ | 9,107.9 | $ | 8,064.5 | 3.7 | % | 12.9 | % | |||||||||||||||||||
Billable expenses | 1,478.4 | 1,132.8 | 996.5 | 30.5 | % | 13.7 | % | ||||||||||||||||||||||
Total revenue | $ | 10,927.8 | $ | 10,240.7 | $ | 9,061.0 | 6.7 | % | 13.0 | % | |||||||||||||||||||
OPERATING INCOME 1 | $ | 1,381.2 | $ | 1,436.2 | $ | 588.4 | (3.8) | % | 144.1 | % | |||||||||||||||||||
Adjusted EBITA 1, 2 | $ | 1,465.9 | $ | 1,522.4 | $ | 674.3 | (3.7) | % | 125.8 | % | |||||||||||||||||||
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | 938.0 | $ | 952.8 | $ | 351.1 | |||||||||||||||||||||||
Earnings per share available to IPG common stockholders: | |||||||||||||||||||||||||||||
Basic 1 | $ | 2.40 | $ | 2.42 | $ | 0.90 | |||||||||||||||||||||||
Diluted 1 | $ | 2.37 | $ | 2.39 | $ | 0.89 | |||||||||||||||||||||||
Operating Ratios | |||||||||||||||||||||||||||||
Organic change in revenue before billable expenses | 7.0 | % | 11.9 | % | (4.8) | % | |||||||||||||||||||||||
Operating margin on revenue before billable expenses 1 | 14.6 | % | 15.8 | % | 7.3 | % | |||||||||||||||||||||||
Operating margin on total revenue 1 | 12.6 | % | 14.0 | % | 6.5 | % | |||||||||||||||||||||||
Adjusted EBITA margin on revenue before billable expenses 1, 2 | 15.5 | % | 16.7 | % | 8.4 | % | |||||||||||||||||||||||
Expenses as a % of revenue before billable expenses: | |||||||||||||||||||||||||||||
Salaries and related expenses | 66.2 | % | 65.6 | % | 66.3 | % | |||||||||||||||||||||||
Office and other direct expenses | 14.2 | % | 14.0 | % | 17.0 | % | |||||||||||||||||||||||
Selling, general and administrative expenses | 0.9 | % | 1.3 | % | 0.7 | % | |||||||||||||||||||||||
Depreciation and amortization | 2.9 | % | 3.1 | % | 3.6 | % | |||||||||||||||||||||||
Restructuring charges 1 | 1.1 | % | 0.1 | % | 5.1 | % |
Years ended December 31, | Change | ||||||||||||||||
2019 vs 2018 | 2018 vs 2017 | ||||||||||||||||
Statement of Operations Data | 2019 | 2018 | 2017 | % Increase/ (Decrease) | % Increase/ (Decrease) | ||||||||||||
REVENUE: | |||||||||||||||||
Net revenue | $ | 8,625.1 | $ | 8,031.6 | $ | 7,473.5 | 7.4 | % | 7.5 | % | |||||||
Billable expenses | 1,596.2 | 1,682.8 | 1,574.1 | (5.1 | )% | 6.9 | % | ||||||||||
Total revenue | $ | 10,221.3 | $ | 9,714.4 | $ | 9,047.6 | 5.2 | % | 7.4 | % | |||||||
OPERATING INCOME 1, 2 | $ | 1,086.0 | $ | 1,008.8 | $ | 938.4 | 7.7 | % | 7.5 | % | |||||||
EBITA 1, 2, 3 | $ | 1,172.0 | $ | 1,046.4 | $ | 959.5 | 12.0 | % | 9.1 | % | |||||||
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | 656.0 | $ | 618.9 | $ | 554.4 | |||||||||||
Earnings per share available to IPG common stockholders: | |||||||||||||||||
Basic 1, 2 | $ | 1.70 | $ | 1.61 | $ | 1.42 | |||||||||||
Diluted 1, 2 | $ | 1.68 | $ | 1.59 | $ | 1.40 | |||||||||||
Operating Ratios | |||||||||||||||||
Organic change in net revenue | 3.3 | % | 5.5 | % | 1.5 | % | |||||||||||
Operating margin on net revenue 1, 2 | 12.6 | % | 12.6 | % | 12.6 | % | |||||||||||
Operating margin on total revenue 1, 2 | 10.6 | % | 10.4 | % | 10.4 | % | |||||||||||
EBITA margin on net revenue 1, 2, 3 | 13.6 | % | 13.0 | % | 12.8 | % | |||||||||||
Expenses as a % of net revenue: | |||||||||||||||||
Salaries and related expenses | 64.6 | % | 66.0 | % | 66.8 | % | |||||||||||
Office and other direct expenses | 18.1 | % | 16.9 | % | 17.0 | % | |||||||||||
Selling, general and administrative expenses 1 | 1.1 | % | 2.1 | % | 1.6 | % | |||||||||||
Depreciation and amortization | 3.2 | % | 2.5 | % | 2.1 | % | |||||||||||
Restructuring charges 2 | 0.4 | % | 0.0 | % | 0.0 | % |
Year ended December 31, 2021 | Components of Change | Year ended December 31, 2022 | Change | ||||||||||||||||||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||||||||||||||||||
Consolidated | $ | 9,107.9 | $ | (266.9) | $ | (27.4) | $ | 635.8 | $ | 9,449.4 | 7.0 | % | 3.7 | % | |||||||||||||||||||||||||||
Domestic | 5,763.1 | 0.0 | 14.4 | 380.2 | 6,157.7 | 6.6 | % | 6.8 | % | ||||||||||||||||||||||||||||||||
International | 3,344.8 | (266.9) | (41.8) | 255.6 | 3,291.7 | 7.6 | % | (1.6) | % | ||||||||||||||||||||||||||||||||
United Kingdom | 781.5 | (79.7) | 0.0 | 40.4 | 742.2 | 5.2 | % | (5.0) | % | ||||||||||||||||||||||||||||||||
Continental Europe | 799.7 | (90.6) | 0.0 | 55.5 | 764.6 | 6.9 | % | (4.4) | % | ||||||||||||||||||||||||||||||||
Asia Pacific | 791.4 | (57.4) | (4.1) | 42.8 | 772.7 | 5.4 | % | (2.4) | % | ||||||||||||||||||||||||||||||||
Latin America | 396.4 | (19.4) | (4.6) | 51.2 | 423.6 | 12.9 | % | 6.9 | % | ||||||||||||||||||||||||||||||||
Other | 575.8 | (19.8) | (33.1) | 65.7 | 588.6 | 11.4 | % | 2.2 | % |
Year ended December 31, 2018 | Components of Change | Year ended December 31, 2019 | Change | ||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||
Consolidated | $ | 8,031.6 | $ | (143.1 | ) | $ | 467.8 | $ | 268.8 | $ | 8,625.1 | 3.3 | % | 7.4 | % | ||||||||||
Domestic | 4,825.0 | 0.0 | 469.9 | 91.2 | 5,386.1 | 1.9 | % | 11.6 | % | ||||||||||||||||
International | 3,206.6 | (143.1 | ) | (2.1 | ) | 177.6 | 3,239.0 | 5.5 | % | 1.0 | % | ||||||||||||||
United Kingdom | 711.7 | (32.0 | ) | 20.8 | 26.5 | 727.0 | 3.7 | % | 2.1 | % | |||||||||||||||
Continental Europe | 737.5 | (40.6 | ) | (8.4 | ) | 53.9 | 742.4 | 7.3 | % | 0.7 | % | ||||||||||||||
Asia Pacific | 896.8 | (26.2 | ) | (9.9 | ) | (2.4 | ) | 858.3 | (0.3 | )% | (4.3 | )% | |||||||||||||
Latin America | 350.1 | (34.4 | ) | (2.1 | ) | 76.3 | 389.9 | 21.8 | % | 11.4 | % | ||||||||||||||
Other | 510.5 | (9.9 | ) | (2.5 | ) | 23.3 | 521.4 | 4.6 | % | 2.1 | % |
Year ended December 31, 2020 | Components of Change | Year ended December 31, 2021 | Change | ||||||||||||||||||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||||||||||||||||||
Consolidated | $ | 8,064.5 | $ | 115.2 | $ | (34.9) | $ | 963.1 | $ | 9,107.9 | 11.9 | % | 12.9 | % | |||||||||||||||||||||||||||
Domestic | 5,211.4 | 0.0 | (14.7) | 566.4 | 5,763.1 | 10.9 | % | 10.6 | % | ||||||||||||||||||||||||||||||||
International | 2,853.1 | 115.2 | (20.2) | 396.7 | 3,344.8 | 13.9 | % | 17.2 | % | ||||||||||||||||||||||||||||||||
United Kingdom | 664.3 | 49.7 | 0.9 | 66.6 | 781.5 | 10.0 | % | 17.6 | % | ||||||||||||||||||||||||||||||||
Continental Europe | 683.6 | 27.4 | (3.7) | 92.4 | 799.7 | 13.5 | % | 17.0 | % | ||||||||||||||||||||||||||||||||
Asia Pacific | 710.5 | 23.1 | (20.6) | 78.4 | 791.4 | 11.0 | % | 11.4 | % | ||||||||||||||||||||||||||||||||
Latin America | 323.4 | (9.8) | 9.2 | 73.6 | 396.4 | 22.8 | % | 22.6 | % | ||||||||||||||||||||||||||||||||
Other | 471.3 | 24.8 | (6.0) | 85.7 | 575.8 | 18.2 | % | 22.2 | % |
Year ended December 31, 2017 | Components of Change | Year ended December 31, 2018 | Change | ||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||
Consolidated | $ | 7,473.5 | $ | 15.9 | $ | 128.2 | $ | 414.0 | $ | 8,031.6 | 5.5 | % | 7.5 | % | |||||||||||
Domestic | 4,458.8 | 0.0 | 139.9 | 226.3 | 4,825.0 | 5.1 | % | 8.2 | % | ||||||||||||||||
International | 3,014.7 | 15.9 | (11.7 | ) | 187.7 | 3,206.6 | 6.2 | % | 6.4 | % | |||||||||||||||
United Kingdom | 613.1 | 24.1 | 15.3 | 59.2 | 711.7 | 9.7 | % | 16.1 | % | ||||||||||||||||
Continental Europe | 687.8 | 27.8 | (14.7 | ) | 36.6 | 737.5 | 5.3 | % | 7.2 | % | |||||||||||||||
Asia Pacific | 866.9 | (2.0 | ) | (2.0 | ) | 33.9 | 896.8 | 3.9 | % | 3.4 | % | ||||||||||||||
Latin America | 350.8 | (35.6 | ) | (6.1 | ) | 41.0 | 350.1 | 11.7 | % | (0.2 | )% | ||||||||||||||
Other | 496.1 | 1.6 | (4.2 | ) | 17.0 | 510.5 | 3.4 | % | 2.9 | % |
Years ended December 31, | Change | ||||||||||||||||
2019 vs 2018 | 2018 vs 2017 | ||||||||||||||||
2019 | 2018 | 2017 | % Increase/ (Decrease) | % Increase/ (Decrease) | |||||||||||||
Salaries and related expenses | $ | 5,568.8 | $ | 5,298.3 | $ | 4,990.7 | 5.1 | % | 6.2 | % | |||||||
As a % of net revenue: | |||||||||||||||||
Salaries and related expenses | 64.6 | % | 66.0 | % | 66.8 | % | |||||||||||
Base salaries, benefits and tax | 54.5 | % | 54.9 | % | 56.1 | % | |||||||||||
Incentive expense | 3.3 | % | 3.7 | % | 3.3 | % | |||||||||||
Severance expense | 0.6 | % | 0.9 | % | 1.0 | % | |||||||||||
Temporary help | 4.1 | % | 4.2 | % | 3.9 | % | |||||||||||
All other salaries and related expenses | 2.1 | % | 2.3 | % | 2.5 | % |
Years ended December 31, | Change | ||||||||||||||||||||||||||||
2022 vs 2021 | 2021 vs 2020 | ||||||||||||||||||||||||||||
2022 | 2021 | 2020 | % Increase/ (Decrease) | % Increase/ (Decrease) | |||||||||||||||||||||||||
Salaries and related expenses | $ | 6,258.3 | $ | 5,975.4 | $ | 5,345.0 | 4.7 | % | 11.8 | % | |||||||||||||||||||
As a % of revenue before billable expenses: | |||||||||||||||||||||||||||||
Salaries and related expenses | 66.2 | % | 65.6 | % | 66.3 | % | |||||||||||||||||||||||
Base salaries, benefits and tax | 56.6 | % | 53.4 | % | 55.9 | % | |||||||||||||||||||||||
Incentive expense | 3.6 | % | 5.2 | % | 3.8 | % | |||||||||||||||||||||||
Severance expense | 0.8 | % | 0.9 | % | 1.5 | % | |||||||||||||||||||||||
Temporary help | 4.1 | % | 4.8 | % | 3.8 | % | |||||||||||||||||||||||
All other salaries and related expenses | 1.1 | % | 1.3 | % | 1.3 | % |
Years ended December 31, | Change | ||||||||||||||||
2019 vs 2018 | 2018 vs 2017 | ||||||||||||||||
2019 | 2018 | 2017 | % Increase/ (Decrease) | % Increase/ (Decrease) | |||||||||||||
Office and other direct expenses | $ | 1,564.1 | $ | 1,355.1 | $ | 1,269.2 | 15.4 | % | 6.8 | % | |||||||
As a % of net revenue: | |||||||||||||||||
Office and other direct expenses | 18.1 | % | 16.9 | % | 17.0 | % | |||||||||||
Occupancy expense | 6.3 | % | 6.5 | % | 6.8 | % | |||||||||||
All other office and other direct expenses 1 | 11.8 | % | 10.4 | % | 10.2 | % |
Years ended December 31, | Change | ||||||||||||||||||||||||||||
2022 vs 2021 | 2021 vs 2020 | ||||||||||||||||||||||||||||
2022 | 2021 | 2020 | % Increase/ (Decrease) | % Increase/ (Decrease) | |||||||||||||||||||||||||
Office and other direct expenses | $ | 1,346.4 | $ | 1,279.6 | $ | 1,367.9 | 5.2 | % | (6.5) | % | |||||||||||||||||||
As a % of revenue before billable expenses: | |||||||||||||||||||||||||||||
Office and other direct expenses | 14.2 | % | 14.0 | % | 17.0 | % | |||||||||||||||||||||||
Occupancy expense | 4.8 | % | 5.0 | % | 6.2 | % | |||||||||||||||||||||||
All other office and other direct expenses 1 | 9.4 | % | 9.0 | % | 10.8 | % |
Years ended December 31, | |||||||||||||||||||||||
20221 | 20212 | 2020 | |||||||||||||||||||||
Severance and termination costs | $ | (0.1) | $ | 0.4 | $ | 140.4 | |||||||||||||||||
Lease restructuring costs | 85.4 | 6.3 | 256.0 | ||||||||||||||||||||
Other restructuring costs | 17.1 | 3.9 | 17.4 | ||||||||||||||||||||
Total restructuring charges | $ | 102.4 | $ | 10.6 | $ | 413.8 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Severance and termination costs | $ | 22.0 | $ | 0.0 | $ | 0.0 | |||||
Lease restructuring costs | 11.9 | 0.0 | (0.4 | ) | |||||||
Total restructuring charges | $ | 33.9 | $ | 0.0 | $ | (0.4 | ) |
2022 Real Estate Actions | |||||||||||||||||||||||||||||
Restructuring Expense | Non-Cash Items | Cash Payments | Liability at December 31, 2022 | ||||||||||||||||||||||||||
Lease impairment costs | $ | 84.4 | $ | 84.4 | $ | 0.0 | $ | 0.0 | |||||||||||||||||||||
Other restructuring costs | 14.2 | 13.5 | 0.7 | 0.0 | |||||||||||||||||||||||||
Total | $ | 98.6 | $ | 97.9 | $ | 0.7 | $ | 0.0 |
2020 Plan | |||||||||||||||||||||||||||||||||||
Liability at December 31, 2021 | Restructuring Expense | Non-Cash Items | Cash Payments | Liability at December 31, 2022 | |||||||||||||||||||||||||||||||
Severance and termination costs | $ | 9.4 | $ | (0.1) | $ | 0.0 | $ | 7.0 | $ | 2.3 | |||||||||||||||||||||||||
Lease impairment costs | 0.0 | 1.0 | 1.0 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||
Other restructuring costs | 0.0 | 2.9 | 2.9 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||
Total | $ | 9.4 | $ | 3.8 | $ | 3.9 | $ | 7.0 | $ | 2.3 |
2020 Plan | |||||||||||||||||||||||||||||||||||
Liability at December 31, 2020 | Restructuring Expense | Non-Cash Items | Cash Payments | Liability at December 31, 2021 | |||||||||||||||||||||||||||||||
Severance and termination costs | $ | 74.6 | $ | 0.4 | $ | 0.3 | $ | 65.3 | $ | 9.4 | |||||||||||||||||||||||||
Lease impairment costs | 0.0 | 6.3 | 6.3 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||
Other restructuring costs | 0.0 | 3.9 | 3.2 | 0.7 | 0.0 | ||||||||||||||||||||||||||||||
Total | $ | 74.6 | $ | 10.6 | $ | 9.8 | $ | 66.0 | $ | 9.4 |
2020 Plan | |||||||||||||||||||||||||||||
Restructuring Expense | Non-Cash Items | Cash Payments | Liability at December 31, 2020 | ||||||||||||||||||||||||||
Severance and termination costs | $ | 140.4 | $ | 4.5 | $ | 61.3 | $ | 74.6 | |||||||||||||||||||||
Lease impairment costs | 256.0 | 256.0 | 0.0 | 0.0 | |||||||||||||||||||||||||
Other | 17.4 | 5.1 | 12.3 | 0.0 | |||||||||||||||||||||||||
Total | $ | 413.8 | $ | 265.6 | $ | 73.6 | $ | 74.6 |
Restructuring Charges | Headcount Reduction (Actual Number) | |||||
Domestic | $ | 26.3 | 507 | |||
International | 7.6 | 120 | ||||
Consolidated | $ | 33.9 | 627 |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | |||||||||||||||||||||||
Cash interest on debt obligations | $ | (188.3 | ) | $ | (118.4 | ) | $ | (81.9 | ) | Cash interest on debt obligations | $ | (171.3) | $ | (168.0) | $ | (186.3) | ||||||||||||
Non-cash interest | (11.0 | ) | (4.6 | ) | (8.9 | ) | Non-cash interest | (3.4) | (5.1) | (5.9) | ||||||||||||||||||
Interest expense | (199.3 | ) | (123.0 | ) | (90.8 | ) | Interest expense | (174.7) | (173.1) | (192.2) | ||||||||||||||||||
Interest income | 34.5 | 21.8 | 19.4 | Interest income | 63.4 | 29.7 | 29.5 | |||||||||||||||||||||
Net interest expense | (164.8 | ) | (101.2 | ) | (71.4 | ) | Net interest expense | (111.3) | (143.4) | (162.7) | ||||||||||||||||||
Other expense, net | (42.9 | ) | (69.6 | ) | (26.2 | ) | Other expense, net | (1.0) | (70.7) | (64.4) | ||||||||||||||||||
Total (expenses) and other income | $ | (207.7 | ) | $ | (170.8 | ) | $ | (97.6 | ) | Total (expenses) and other income | $ | (112.3) | $ | (214.1) | $ | (227.1) |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | |||||||||||||||||||||||
Net losses on sales of businesses | $ | (43.4 | ) | $ | (61.9 | ) | $ | (24.1 | ) | Net losses on sales of businesses | $ | (11.3) | $ | (19.4) | $ | (67.0) | ||||||||||||
Loss on early extinguishment of debt | Loss on early extinguishment of debt | 0.0 | (74.0) | 0.0 | ||||||||||||||||||||||||
Other | 0.5 | (7.7 | ) | (2.1 | ) | Other | 10.3 | 22.7 | 2.6 | |||||||||||||||||||
Total other expense, net | $ | (42.9 | ) | $ | (69.6 | ) | $ | (26.2 | ) | Total other expense, net | $ | (1.0) | $ | (70.7) | $ | (64.4) |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Income before income taxes | $ | 878.3 | $ | 838.0 | $ | 840.8 | |||||
Provision for income taxes | $ | 204.8 | $ | 199.2 | $ | 271.3 | |||||
Effective income tax rate | 23.3 | % | 23.8 | % | 32.3 | % |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Income before income taxes | $ | 1,268.9 | $ | 1,222.1 | $ | 361.3 | |||||||||||
Provision for income taxes | $ | 318.4 | $ | 251.8 | $ | 8.0 | |||||||||||
Effective income tax rate | 25.1 | % | 20.6 | % | 2.2 | % |
Year ended December 31, 2021 | Components of Change | Year ended December 31, 2022 | Change | ||||||||||||||||||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||||||||||||||||||
Consolidated | $ | 3,973.6 | $ | (132.6) | $ | 17.1 | $ | 253.4 | $ | 4,111.5 | 6.4 | % | 3.5 | % | |||||||||||||||||||||||||||
Domestic | 2,403.6 | — | 14.4 | 94.1 | 2,512.1 | 3.9 | % | 4.5 | % | ||||||||||||||||||||||||||||||||
International | 1,570.0 | (132.6) | 2.7 | 159.3 | 1,599.4 | 10.1 | % | 1.9 | % |
Year ended December 31, 2018 1 | Components of Change | Year ended December 31, 2019 | Change | ||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||
Consolidated | $ | 6,767.5 | $ | (124.5 | ) | $ | 465.5 | $ | 239.7 | $ | 7,348.2 | 3.5 | % | 8.6 | % | ||||||||||
Domestic | 4,000.4 | 0.0 | 471.6 | 85.5 | 4,557.5 | 2.1 | % | 13.9 | % | ||||||||||||||||
International | 2,767.1 | (124.5 | ) | (6.1 | ) | 154.2 | 2,790.7 | 5.6 | % | 0.9 | % |
Year ended December 31, 2020 | Components of Change | Year ended December 31, 2021 | Change | ||||||||||||||||||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||||||||||||||||||
Consolidated | $ | 3,451.2 | $ | 49.2 | $ | (0.1) | $ | 473.3 | $ | 3,973.6 | 13.7 | % | 15.1 | % | |||||||||||||||||||||||||||
Domestic | 2,168.9 | — | — | 234.7 | 2,403.6 | 10.8 | % | 10.8 | % | ||||||||||||||||||||||||||||||||
International | 1,282.3 | 49.2 | (0.1) | 238.6 | 1,570.0 | 18.6 | % | 22.4 | % |
Year ended December 31, 2017 | Components of Change | Year ended December 31, 2018 1 | Change | ||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) 1 | Organic | Organic | Total 1 | |||||||||||||||||||||
Consolidated | $ | 6,266.7 | $ | 6.9 | $ | 120.6 | $ | 373.3 | $ | 6,767.5 | 6.0 | % | 8.0 | % | |||||||||||
Domestic | 3,660.6 | 0.0 | 139.8 | 200.0 | 4,000.4 | 5.5 | % | 9.3 | % | ||||||||||||||||
International | 2,606.1 | 6.9 | (19.2 | ) | 173.3 | 2,767.1 | 6.6 | % | 6.2 | % |
Years ended December 31, | Change | ||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs 2021 | 2021 vs 2020 | |||||||||||||||||||||||||
Segment EBITA 1 | $ | 701.8 | $ | 818.0 | $ | 385.7 | (14.2) | % | 112.1 | % | |||||||||||||||||||
Segment EBITA margin on revenue before billable expenses 1 | 17.1 | % | 20.6 | % | 11.2 | % |
Years ended December 31, | Change | ||||||||||||||||
2019 | 2018 | 2017 | 2019 vs 2018 | 2018 vs 2017 | |||||||||||||
Segment EBITA 1, 2 | $ | 1,110.4 | $ | 1,042.1 | $ | 891.7 | 6.6 | % | 16.9 | % | |||||||
EBITA margin on net revenue 1, 2 | 15.1 | % | 15.4 | % | 14.2 | % |
Year ended December 31, 2021 | Components of Change | Year ended December 31, 2022 | Change | ||||||||||||||||||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||||||||||||||||||
Consolidated | $ | 3,823.8 | $ | (99.5) | $ | (43.0) | $ | 270.4 | $ | 3,951.7 | 7.1 | % | 3.3 | % | |||||||||||||||||||||||||||
Domestic | 2,454.4 | — | — | 208.1 | 2,662.5 | 8.5 | % | 8.5 | % | ||||||||||||||||||||||||||||||||
International | 1,369.4 | (99.5) | (43.0) | 62.3 | 1,289.2 | 4.5 | % | (5.9) | % |
Year ended December 31, 2020 | Components of Change | Year ended December 31, 2021 | Change | ||||||||||||||||||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||||||||||||||||||
Consolidated | $ | 3,427.5 | $ | 46.4 | $ | (17.7) | $ | 367.6 | $ | 3,823.8 | 10.7 | % | 11.6 | % | |||||||||||||||||||||||||||
Domestic | 2,230.3 | — | (8.1) | 232.2 | 2,454.4 | 10.4 | % | 10.0 | % | ||||||||||||||||||||||||||||||||
International | 1,197.2 | 46.4 | (9.6) | 135.4 | 1,369.4 | 11.3 | % | 14.4 | % |
Years ended December 31, | Change | ||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs 2021 | 2021 vs 2020 | |||||||||||||||||||||||||
Segment EBITA 1 | $ | 624.1 | $ | 645.2 | $ | 328.5 | (3.3) | % | 96.4 | % | |||||||||||||||||||
Segment EBITA margin on revenue before billable expenses 1 | 15.8 | % | 16.9 | % | 9.6 | % |
Year ended December 31, 2018 | Components of Change | Year ended December 31, 2019 | Change | ||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||
Consolidated | $ | 1,264.1 | $ | (18.6 | ) | $ | 2.3 | $ | 29.1 | $ | 1,276.9 | 2.3 | % | 1.0 | % | ||||||||||
Domestic | 824.6 | 0.0 | (1.7 | ) | 5.7 | 828.6 | 0.7 | % | 0.5 | % | |||||||||||||||
International | 439.5 | (18.6 | ) | 4.0 | 23.4 | 448.3 | 5.3 | % | 2.0 | % |
Year ended December 31, 2017 | Components of Change | Year ended December 31, 2018 | Change | ||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||
Consolidated | $ | 1,206.8 | $ | 9.0 | $ | 7.6 | $ | 40.7 | $ | 1,264.1 | 3.4 | % | 4.7 | % | |||||||||||
Domestic | 798.2 | 0.0 | 0.1 | 26.3 | 824.6 | 3.3 | % | 3.3 | % | ||||||||||||||||
International | 408.6 | 9.0 | 7.5 | 14.4 | 439.5 | 3.5 | % | 7.6 | % |
Years ended December 31, | Change | ||||||||||||||||
2019 | 2018 | 2017 | 2019 vs 2018 | 2018 vs 2017 | |||||||||||||
Segment EBITA 1 | $ | 163.4 | $ | 180.3 | $ | 194.4 | (9.4 | )% | (7.3 | )% | |||||||
EBITA margin 1 | 12.8 | % | 14.3 | % | 16.1 | % |
Year ended December 31, 2021 | Components of Change | Year ended December 31, 2022 | Change | ||||||||||||||||||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||||||||||||||||||
Consolidated | $ | 1,310.5 | $ | (34.8) | $ | (1.5) | $ | 112.0 | $ | 1,386.2 | 8.5 | % | 5.8 | % | |||||||||||||||||||||||||||
Domestic | 905.1 | — | — | 78.0 | 983.1 | 8.6 | % | 8.6 | % | ||||||||||||||||||||||||||||||||
International | 405.4 | (34.8) | (1.5) | 34.0 | 403.1 | 8.4 | % | (0.6) | % |
Year ended December 31, 2020 | Components of Change | Year ended December 31, 2021 | Change | ||||||||||||||||||||||||||||||||||||||
Foreign Currency | Net Acquisitions/ (Divestitures) | Organic | Organic | Total | |||||||||||||||||||||||||||||||||||||
Consolidated | $ | 1,185.8 | $ | 19.6 | $ | (17.1) | $ | 122.2 | $ | 1,310.5 | 10.3 | % | 10.5 | % | |||||||||||||||||||||||||||
Domestic | 812.2 | — | (6.6) | 99.5 | 905.1 | 12.3 | % | 11.4 | % | ||||||||||||||||||||||||||||||||
International | 373.6 | 19.6 | (10.5) | 22.7 | 405.4 | 6.1 | % | 8.5 | % |
Years ended December 31, | Change | ||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs 2021 | 2021 vs 2020 | |||||||||||||||||||||||||
Segment EBITA 1 | $ | 234.5 | $ | 188.6 | $ | 41.4 | 24.3 | % | 355.6 | % | |||||||||||||||||||
Segment EBITA margin on revenue before billable expenses 1 | 16.9 | % | 14.4 | % | 3.5 | % |
Years ended December 31, | |||||||||||
Cash Flow Data | 2019 | 2018 | 2017 | ||||||||
Net income, adjusted to reconcile to net cash provided by operating activities 1 | $ | 1,115.0 | $ | 1,013.0 | $ | 852.1 | |||||
Net cash provided by (used in) working capital 2 | 442.8 | (431.1 | ) | 5.3 | |||||||
Changes in other non-current assets and liabilities 3 | (28.6 | ) | (16.8 | ) | 24.4 | ||||||
Net cash provided by operating activities | $ | 1,529.2 | $ | 565.1 | $ | 881.8 | |||||
Net cash used in investing activities | (161.7 | ) | (2,491.5 | ) | (196.2 | ) | |||||
Net cash (used in) provided by financing activities | (843.0 | ) | 1,853.2 | (1,004.9 | ) |
Years ended December 31, | |||||||||||||||||
Cash Flow Data | 2022 | 2021 | 2020 | ||||||||||||||
Net income | $ | 956.1 | $ | 972.8 | $ | 354.2 | |||||||||||
Adjustments to reconcile to net cash provided by operating activities 1 | 417.6 | 458.7 | 734.7 | ||||||||||||||
Net cash (used in) provided by working capital 2 | (672.3) | 743.4 | 900.1 | ||||||||||||||
Changes in other non-current assets and liabilities | (92.6) | (99.3) | (141.8) | ||||||||||||||
Net cash provided by operating activities | $ | 608.8 | $ | 2,075.6 | $ | 1,847.2 | |||||||||||
Net cash used in investing activities | (430.1) | (185.3) | (216.2) | ||||||||||||||
Net cash used in financing activities | (899.4) | (1,084.2) | (346.2) |
•Debt service – As of December 31, 2022, we had outstanding short-term borrowings of $44.3 from our uncommitted lines of credit used primarily to fund short-term working capital needs. We paid $29.9, net of cash acquired, related to the acquisition of the outstanding ownership interests of a non-operating entity in which we previously held a minority interest, and which resulted in a $36.1 settlement of a senior note issued by IPG previously recorded within long-term debt. The remainder of our debt is primarily long-term, with maturities scheduled from 2024 through 2048. • |
Years ended December 31, | Thereafter | Total | |||||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | |||||||||||||||||||||||
Long-term debt 1 | $ | 502.0 | $ | 501.4 | $ | 248.9 | $ | 498.3 | $ | 497.8 | $ | 1,025.5 | $ | 3,273.9 | |||||||||||||
Interest payments on long-term debt 1 | 134.2 | 116.4 | 93.9 | 73.6 | 56.4 | 728.6 | 1,203.1 | ||||||||||||||||||||
Non-cancelable operating lease obligations 2 | 333.5 | 300.7 | 267.5 | 209.7 | 183.5 | 716.1 | 2,011.0 | ||||||||||||||||||||
Contingent acquisition payments 3 | 71.9 | 68.3 | 39.8 | 10.6 | 4.9 | 0.2 | 195.7 | ||||||||||||||||||||
Uncertain tax positions 4 | 14.0 | 169.8 | 35.7 | 81.6 | 29.8 | 14.4 | 345.3 | ||||||||||||||||||||
Total | $ | 1,055.6 | $ | 1,156.6 | $ | 685.8 | $ | 873.8 | $ | 772.4 | $ | 2,484.8 | $ | 7,029.0 |
Years ended December 31, | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||
2023 | 2024 | 2025 | 2026 | 2027 | |||||||||||||||||||||||||||||||||||||
Long-term debt 1 | $ | 0.6 | $ | 249.8 | $ | 0.1 | $ | 0.0 | $ | 0.0 | $ | 2,620.8 | $ | 2,871.3 | |||||||||||||||||||||||||||
Interest payments on long-term debt 1 | 122.4 | 117.1 | 111.9 | 111.6 | 110.0 | 937.3 | 1,510.3 | ||||||||||||||||||||||||||||||||||
Non-cancelable operating lease obligations 2 | 279.1 | 278.0 | 247.9 | 229.0 | 201.2 | 569.3 | 1,804.5 | ||||||||||||||||||||||||||||||||||
Contingent acquisition payments 3 | 28.2 | 4.3 | 16.0 | 0.1 | 24.3 | 0.0 | 72.9 | ||||||||||||||||||||||||||||||||||
Uncertain tax positions 4 | 78.9 | 90.0 | 52.8 | 38.0 | 5.7 | 18.1 | 283.5 | ||||||||||||||||||||||||||||||||||
Total | $ | 509.2 | $ | 739.2 | $ | 428.7 | $ | 378.7 | $ | 341.2 | $ | 4,145.5 | $ | 6,542.5 |
1Amounts represent maturity at book value and interest payments based on contractual obligations. We may at our option and at any time redeem all or some of any outstanding series of our senior notes reflected in this table at the redemption prices set forth in the applicable supplemental indentures under which such senior notes were issued. See Note 4 in Item 8, Financial Statements and Supplementary Data for further information. 2Non-cancellable operating lease obligations are presented net of future receipts on contractual sublease arrangements. See Note 3 in Item 8, Financial Statements and Supplementary Data for further information. 3We have structured certain acquisitions with additional contingent purchase price obligations based on factors including future performance of the acquired entity. See Note 6 and Note 16 in Item 8, Financial Statements and Supplementary Data for further information. 4The amounts presented are estimates due to inherent uncertainty of tax settlements, including the ability to offset liabilities with tax loss carryforwards. |
Four Quarters Ended | Four Quarters Ended | |||||
Financial Covenants 1 | December 31, 2019 | EBITDA Reconciliation 1 | December 31, 2019 | |||
Leverage ratio (not greater than) | 3.75x | Operating income | 1,086.0 | |||
Actual leverage ratio | 2.28x | Add: | ||||
Depreciation and amortization | 369.8 | |||||
EBITDA | $ | 1,455.8 |
Four Quarters Ended | Four Quarters Ended | |||||||||||||
Financial Covenant | December 31, 2022 | Credit Agreement EBITDA Reconciliation1 | December 31, 2022 | |||||||||||
Leverage ratio (not greater than) 1 | 3.50x | Net income available to IPG common stockholders | $ | 938.0 | ||||||||||
Actual leverage ratio | 1.61x | Non-operating adjustments 2 | 443.2 | |||||||||||
Operating income | 1,381.2 | |||||||||||||
Add: | ||||||||||||||
Depreciation and amortization | 340.3 | |||||||||||||
Other non-cash charges reducing operating income | 85.4 | |||||||||||||
Other non-cash adjustments | 6.7 | |||||||||||||
Credit Agreement EBITDA 1 | $ | 1,813.6 |
1The leverage ratio is defined as debt as of the last day of such fiscal quarter to EBITDA (as defined |
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 |
2019 Impairment Test | 2018 Impairment Test | 2022 Impairment Test | 2021 Impairment Test | |||||||||||||||||||||||||||||||||||||||||||
Reporting Unit | Goodwill | Fair value exceeds carrying value by: | Reporting Unit | Goodwill | Fair value exceeds carrying value by: | Reporting Unit | Goodwill | Fair value exceeds carrying value by: | Reporting Unit | Goodwill | Fair value exceeds carrying value by: | |||||||||||||||||||||||||||||||||||
A | $ | 533.5 | > 20% | A | $ | 462.1 | > 40% | A | $ | 448.6 | > 200% | A | $ | 536.0 | > 60% | |||||||||||||||||||||||||||||||
B | $ | 209.1 | > 30% | B | $ | 638.5 | > 280% | B | $ | 528.3 | > 100% | B | $ | 209.1 | > 85% | |||||||||||||||||||||||||||||||
C | $ | 182.1 | > 25% | C | $ | 182.1 | > 20% | |||||||||||||||||||||||||||||||||||||||
D | $ | 668.5 | > 45% | |||||||||||||||||||||||||||||||||||||||||||
E | $ | 1,216.8 | > 205% | |||||||||||||||||||||||||||||||||||||||||||
C | $ | 300.4 | > 175% |
•Total (Expenses) and Other Income, Provision for Income Taxes, Equity in Net Income of Unconsolidated Affiliates and Net Income Attributable to Non-controlling Interests. We exclude these items (i) because these items are not directly attributable to the performance of our business operations and, accordingly, their exclusion assists management and investors in making period-to-period comparisons of operating performance and (ii) to assist management and investors in making comparisons to companies with different capital structures. Investors should note that these items will recur in future periods. • |
Amortization of Acquired Intangibles. Amortization of acquired intangibles is a non-cash expense relating to intangible assets arising from acquisitions that are expensed on a straight-line basis over the estimated useful life of the related assets. We exclude amortization of acquired intangibles because we believe that (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of new acquisitions and full amortization of previously acquired intangible assets. Accordingly, we believe that this exclusion assists management and investors in making period-to-period comparisons of operating performance. Investors should note that the use of acquired intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation and should also note that such expense may recur in future periods. |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net Revenue | $ | 8,625.1 | $ | 8,031.6 | $ | 7,473.5 | |||||
EBITA Reconciliation: | |||||||||||
Net Income Available to IPG Common Stockholders 1 | $ | 656.0 | $ | 618.9 | $ | 554.4 | |||||
Add Back: | |||||||||||
Provision for Income Taxes | 204.8 | 199.2 | 271.3 | ||||||||
Subtract: | |||||||||||
Total (Expenses) and Other Income | (207.7 | ) | (170.8 | ) | (97.6 | ) | |||||
Equity in Net Income (Loss) of Unconsolidated Affiliates | 0.4 | (1.1 | ) | 0.9 | |||||||
Net Income Attributable to Noncontrolling Interests | (17.9 | ) | (18.8 | ) | (16.0 | ) | |||||
Operating Income 1 | 1,086.0 | 1,008.8 | 938.4 | ||||||||
Add Back: | |||||||||||
Amortization of Acquired Intangibles | 86.0 | 37.6 | 21.1 | ||||||||
EBITA 1 | $ | 1,172.0 | $ | 1,046.4 | $ | 959.5 | |||||
EBITA Margin on Net Revenue 1 | 13.6 | % | 13.0 | % | 12.8 | % |
Years ended December 31, | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
Revenue before billable expenses | $ | 9,449.4 | $ | 9,107.9 | $ | 8,064.5 | |||||||||||||||||||||||
Adjusted EBITA Reconciliation: | |||||||||||||||||||||||||||||
Net Income Available to IPG Common Stockholders 1 | $ | 938.0 | $ | 952.8 | $ | 351.1 | |||||||||||||||||||||||
Add Back: | |||||||||||||||||||||||||||||
Provision for income taxes | 318.4 | 251.8 | 8.0 | ||||||||||||||||||||||||||
Subtract: | |||||||||||||||||||||||||||||
Total (expenses) and other income | (112.3) | (214.1) | (227.1) | ||||||||||||||||||||||||||
Equity in net income of unconsolidated affiliates | 5.6 | 2.5 | 0.9 | ||||||||||||||||||||||||||
Net income attributable to non-controlling interests | (18.1) | (20.0) | (3.1) | ||||||||||||||||||||||||||
Operating Income 1 | 1,381.2 | 1,436.2 | 588.4 | ||||||||||||||||||||||||||
Add Back: | |||||||||||||||||||||||||||||
Amortization of acquired intangibles | 84.7 | 86.2 | 85.9 | ||||||||||||||||||||||||||
Adjusted EBITA 1 | $ | 1,465.9 | $ | 1,522.4 | $ | 674.3 | |||||||||||||||||||||||
Adjusted EBITA Margin on Revenue before billable expenses 1 | 15.5 | % | 16.7 | % | 8.4 | % |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
Increase/(Decrease) in Fair Market Value | |||||||
As of December 31, | 10% Increase in Interest Rates | 10% Decrease in Interest Rates | |||||
2019 | $ | (61.3 | ) | $ | 65.2 | ||
2018 | (91.3 | ) | 82.5 |
Increase/(Decrease) in Fair Market Value | |||||||||||
As of December 31, | 10% Increase in Interest Rates | 10% Decrease in Interest Rates | |||||||||
2022 | $ | (99.2) | $ | 127.1 | |||||||
2021 | (110.0) | 69.2 |
Item 8. | Financial Statements and Supplementary Data |
Page | |||||
2. Revenue | |||||
3. Leases | |||||
6. Acquisitions | |||||
9. Income Taxes | |||||
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
REVENUE: | |||||||||||||||||
Revenue before billable expenses | $ | 9,449.4 | $ | 9,107.9 | $ | 8,064.5 | |||||||||||
Billable expenses | 1,478.4 | 1,132.8 | 996.5 | ||||||||||||||
Total revenue | 10,927.8 | 10,240.7 | 9,061.0 | ||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||
Salaries and related expenses | 6,258.3 | 5,975.4 | 5,345.0 | ||||||||||||||
Office and other direct expenses | 1,346.4 | 1,279.6 | 1,367.9 | ||||||||||||||
Billable expenses | 1,478.4 | 1,132.8 | 996.5 | ||||||||||||||
Cost of services | 9,083.1 | 8,387.8 | 7,709.4 | ||||||||||||||
Selling, general and administrative expenses | 87.1 | 122.3 | 58.8 | ||||||||||||||
Depreciation and amortization | 274.0 | 283.8 | 290.6 | ||||||||||||||
Restructuring charges | 102.4 | 10.6 | 413.8 | ||||||||||||||
Total operating expenses | 9,546.6 | 8,804.5 | 8,472.6 | ||||||||||||||
OPERATING INCOME | 1,381.2 | 1,436.2 | 588.4 | ||||||||||||||
EXPENSES AND OTHER INCOME: | |||||||||||||||||
Interest expense | (174.7) | (173.1) | (192.2) | ||||||||||||||
Interest income | 63.4 | 29.7 | 29.5 | ||||||||||||||
Other expense, net | (1.0) | (70.7) | (64.4) | ||||||||||||||
Total (expenses) and other income | (112.3) | (214.1) | (227.1) | ||||||||||||||
Income before income taxes | 1,268.9 | 1,222.1 | 361.3 | ||||||||||||||
Provision for income taxes | 318.4 | 251.8 | 8.0 | ||||||||||||||
Income of consolidated companies | 950.5 | 970.3 | 353.3 | ||||||||||||||
Equity in net income of unconsolidated affiliates | 5.6 | 2.5 | 0.9 | ||||||||||||||
NET INCOME | 956.1 | 972.8 | 354.2 | ||||||||||||||
Net income attributable to non-controlling interests | (18.1) | (20.0) | (3.1) | ||||||||||||||
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | 938.0 | $ | 952.8 | $ | 351.1 | |||||||||||
Earnings per share available to IPG common stockholders: | |||||||||||||||||
Basic | $ | 2.40 | $ | 2.42 | $ | 0.90 | |||||||||||
Diluted | $ | 2.37 | $ | 2.39 | $ | 0.89 | |||||||||||
Weighted-average number of common shares outstanding: | |||||||||||||||||
Basic | 391.5 | 393.0 | 389.4 | ||||||||||||||
Diluted | 395.1 | 398.4 | 393.2 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
REVENUE: | |||||||||||
Net revenue | $ | 8,625.1 | $ | 8,031.6 | $ | 7,473.5 | |||||
Billable expenses | 1,596.2 | 1,682.8 | 1,574.1 | ||||||||
Total revenue | 10,221.3 | 9,714.4 | 9,047.6 | ||||||||
OPERATING EXPENSES: | |||||||||||
Salaries and related expenses | 5,568.8 | 5,298.3 | 4,990.7 | ||||||||
Office and other direct expenses | 1,564.1 | 1,355.1 | 1,269.2 | ||||||||
Billable expenses | 1,596.2 | 1,682.8 | 1,574.1 | ||||||||
Cost of services | 8,729.1 | 8,336.2 | 7,834.0 | ||||||||
Selling, general and administrative expenses | 93.8 | 166.5 | 118.5 | ||||||||
Depreciation and amortization | 278.5 | 202.9 | 157.1 | ||||||||
Restructuring charges | 33.9 | 0.0 | (0.4 | ) | |||||||
Total operating expenses | 9,135.3 | 8,705.6 | 8,109.2 | ||||||||
OPERATING INCOME | 1,086.0 | 1,008.8 | 938.4 | ||||||||
EXPENSES AND OTHER INCOME: | |||||||||||
Interest expense | (199.3 | ) | (123.0 | ) | (90.8 | ) | |||||
Interest income | 34.5 | 21.8 | 19.4 | ||||||||
Other expense, net | (42.9 | ) | (69.6 | ) | (26.2 | ) | |||||
Total (expenses) and other income | (207.7 | ) | (170.8 | ) | (97.6 | ) | |||||
Income before income taxes | 878.3 | 838.0 | 840.8 | ||||||||
Provision for income taxes | 204.8 | 199.2 | 271.3 | ||||||||
Income of consolidated companies | 673.5 | 638.8 | 569.5 | ||||||||
Equity in net income (loss) of unconsolidated affiliates | 0.4 | (1.1 | ) | 0.9 | |||||||
NET INCOME | 673.9 | 637.7 | 570.4 | ||||||||
Net income attributable to noncontrolling interests | (17.9 | ) | (18.8 | ) | (16.0 | ) | |||||
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | 656.0 | $ | 618.9 | $ | 554.4 | |||||
Earnings per share available to IPG common stockholders: | |||||||||||
Basic | $ | 1.70 | $ | 1.61 | $ | 1.42 | |||||
Diluted | $ | 1.68 | $ | 1.59 | $ | 1.40 | |||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic | 386.1 | 383.3 | 389.6 | ||||||||
Diluted | 391.2 | 389.0 | 397.3 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
NET INCOME | $ | 956.1 | $ | 972.8 | $ | 354.2 | |||||||||||
OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||
Foreign currency translation: | |||||||||||||||||
Foreign currency translation adjustments | (98.5) | (86.1) | 39.4 | ||||||||||||||
Reclassification adjustments recognized in net income | 4.3 | (1.0) | 20.0 | ||||||||||||||
(94.2) | (87.1) | 59.4 | |||||||||||||||
Derivative instruments: | |||||||||||||||||
Changes in fair value of derivative instruments | 17.5 | 14.0 | 11.3 | ||||||||||||||
Recognition of previously unrealized (gains) losses included in net income | (1.4) | 4.2 | 2.4 | ||||||||||||||
Income tax effect | (4.0) | (2.1) | (3.4) | ||||||||||||||
12.1 | 16.1 | 10.3 | |||||||||||||||
Defined benefit pension and other postretirement plans: | |||||||||||||||||
Net actuarial gains (losses) for the period | 2.4 | 58.0 | (29.2) | ||||||||||||||
Amortization of unrecognized losses, transition obligation and prior service cost included in net income | 6.3 | 9.4 | 7.4 | ||||||||||||||
Settlement and curtailment losses (gains) included in net income | 0.0 | 0.6 | (0.1) | ||||||||||||||
Other | 4.8 | 1.3 | (3.3) | ||||||||||||||
Income tax effect | 0.8 | (13.8) | 4.6 | ||||||||||||||
14.3 | 55.5 | (20.6) | |||||||||||||||
Other comprehensive (loss) income, net of tax | (67.8) | (15.5) | 49.1 | ||||||||||||||
TOTAL COMPREHENSIVE INCOME | 888.3 | 957.3 | 403.3 | ||||||||||||||
Less: comprehensive income attributable to non-controlling interests | 16.5 | 18.5 | 2.4 | ||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO IPG | $ | 871.8 | $ | 938.8 | $ | 400.9 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
NET INCOME | $ | 673.9 | $ | 637.7 | $ | 570.4 | |||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||
Foreign currency translation: | |||||||||||
Foreign currency translation adjustments | 11.3 | (149.6 | ) | 133.7 | |||||||
Reclassification adjustments recognized in net income | 6.7 | 15.7 | 1.1 | ||||||||
18.0 | (133.9 | ) | 134.8 | ||||||||
Available-for-sale securities: | |||||||||||
Changes in fair value of available-for-sale securities | 0.0 | 0.0 | 0.0 | ||||||||
Recognition of previously unrealized gains in net income | 0.0 | 0.0 | (0.7 | ) | |||||||
Income tax effect | 0.0 | 0.0 | 0.1 | ||||||||
0.0 | 0.0 | (0.6 | ) | ||||||||
Derivative instruments: | |||||||||||
Recognition of previously unrealized losses in net income | 2.3 | 2.2 | 2.1 | ||||||||
Income tax effect | (0.5 | ) | (0.7 | ) | (0.5 | ) | |||||
1.8 | 1.5 | 1.6 | |||||||||
Defined benefit pension and other postretirement plans: | |||||||||||
Net actuarial (losses) gains for the period | (14.8 | ) | 12.6 | (13.6 | ) | ||||||
Amortization of unrecognized losses, transition obligation and prior service cost included in net income | 6.7 | 7.5 | 6.9 | ||||||||
Less: settlement and curtailment (gains) losses included in net income | 0.0 | (1.0 | ) | 6.8 | |||||||
Other | (2.5 | ) | (1.0 | ) | 2.7 | ||||||
Income tax effect | 1.2 | (1.8 | ) | (0.5 | ) | ||||||
(9.4 | ) | 16.3 | 2.3 | ||||||||
Other comprehensive income (loss), net of tax | 10.4 | (116.1 | ) | 138.1 | |||||||
TOTAL COMPREHENSIVE INCOME | 684.3 | 521.6 | 708.5 | ||||||||
Less: comprehensive income attributable to noncontrolling interests | 17.2 | 16.0 | 17.5 | ||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO IPG | $ | 667.1 | $ | 505.6 | $ | 691.0 |
December 31, 2019 | December 31, 2018 | ||||||
ASSETS: | |||||||
Cash and cash equivalents | $ | 1,192.2 | $ | 673.4 | |||
Accounts receivable, net of allowance of $40.2 and $42.5, respectively | 5,209.2 | 5,126.6 | |||||
Accounts receivable, billable to clients | 1,934.1 | 1,900.6 | |||||
Assets held for sale | 22.8 | 5.7 | |||||
Other current assets | 412.4 | 476.6 | |||||
Total current assets | 8,770.7 | 8,182.9 | |||||
Property and equipment, net of accumulated depreciation and amortization of $1,116.4 and $1,034.9, respectively | 778.1 | 790.9 | |||||
Deferred income taxes | 252.1 | 247.0 | |||||
Goodwill | 4,894.4 | 4,875.9 | |||||
Other intangible assets | 1,014.3 | 1,094.7 | |||||
Operating lease right-of-use assets | 1,574.4 | 0.0 | |||||
Other non-current assets | 467.9 | 428.9 | |||||
TOTAL ASSETS | $ | 17,751.9 | $ | 15,620.3 | |||
LIABILITIES: | |||||||
Accounts payable | $ | 7,205.4 | $ | 6,698.1 | |||
Accrued liabilities | 742.8 | 806.9 | |||||
Contract liabilities | 585.6 | 533.9 | |||||
Short-term borrowings | 52.4 | 73.7 | |||||
Current portion of long-term debt | 502.0 | 0.1 | |||||
Current portion of operating leases | 267.2 | 0.0 | |||||
Liabilities held for sale | 65.0 | 11.2 | |||||
Total current liabilities | 9,420.4 | 8,123.9 | |||||
Long-term debt | 2,771.9 | 3,660.2 | |||||
Non-current operating leases | 1,429.6 | 0.0 | |||||
Deferred compensation | 425.0 | 422.7 | |||||
Other non-current liabilities | 714.7 | 812.8 | |||||
TOTAL LIABILITIES | 14,761.6 | 13,019.6 | |||||
Redeemable noncontrolling interests (see Note 6) | 164.7 | 167.9 | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock, $0.10 par value, shares authorized: 800.0 shares issued: 2019 – 387.0; 2018 – 383.6 shares outstanding: 2019 – 387.0; 2018 – 383.6 | 38.7 | 38.3 | |||||
Additional paid-in capital | 977.3 | 895.9 | |||||
Retained earnings | 2,689.9 | 2,400.1 | |||||
Accumulated other comprehensive loss, net of tax | (930.0 | ) | (941.1 | ) | |||
Total IPG stockholders’ equity | 2,775.9 | 2,393.2 | |||||
Noncontrolling interests | 49.7 | 39.6 | |||||
TOTAL STOCKHOLDERS’ EQUITY | 2,825.6 | 2,432.8 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 17,751.9 | $ | 15,620.3 |
December 31, 2022 | December 31, 2021 | ||||||||||
ASSETS: | |||||||||||
Cash and cash equivalents | $ | 2,545.3 | $ | 3,270.0 | |||||||
Accounts receivable, net of allowance of $48.6 and $68.5, respectively | 5,316.0 | 5,177.7 | |||||||||
Accounts receivable, billable to clients | 2,023.0 | 2,347.2 | |||||||||
Assets held for sale | 5.9 | 8.2 | |||||||||
Other current assets | 435.0 | 428.7 | |||||||||
Total current assets | 10,325.2 | 11,231.8 | |||||||||
Property and equipment, net of accumulated depreciation and amortization of $1,244.8 and $1,201.6, respectively | 637.4 | 675.8 | |||||||||
Deferred income taxes | 271.7 | 301.4 | |||||||||
Goodwill | 5,050.6 | 4,908.7 | |||||||||
Other intangible assets | 818.1 | 847.5 | |||||||||
Operating lease right-of-use assets | 1,277.5 | 1,544.4 | |||||||||
Other non-current assets | 464.5 | 399.6 | |||||||||
TOTAL ASSETS | $ | 18,845.0 | $ | 19,909.2 | |||||||
LIABILITIES: | |||||||||||
Accounts payable | $ | 8,235.3 | $ | 8,960.0 | |||||||
Accrued liabilities | 787.1 | 918.1 | |||||||||
Contract liabilities | 680.0 | 688.5 | |||||||||
Short-term borrowings | 44.3 | 47.5 | |||||||||
Current portion of long-term debt | 0.6 | 0.7 | |||||||||
Current portion of operating leases | 235.9 | 265.8 | |||||||||
Liabilities held for sale | — | 9.4 | |||||||||
Total current liabilities | 9,983.2 | 10,890.0 | |||||||||
Long-term debt | 2,870.7 | 2,908.6 | |||||||||
Non-current operating leases | 1,380.1 | 1,576.0 | |||||||||
Deferred compensation | 294.1 | 329.1 | |||||||||
Other non-current liabilities | 572.6 | 600.7 | |||||||||
TOTAL LIABILITIES | 15,100.7 | 16,304.4 | |||||||||
Redeemable non-controlling interests (see Note 6) | 38.3 | 15.6 | |||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||
Common stock, $0.10 par value, shares authorized: 800.0 shares issued: 2022 – 389.6; 2021 – 394.3 shares outstanding: 2022 – 386.5; 2021 – 394.3 | 38.9 | 39.3 | |||||||||
Additional paid-in capital | 1,057.5 | 1,226.6 | |||||||||
Retained earnings | 3,632.1 | 3,154.3 | |||||||||
Accumulated other comprehensive loss, net of tax | (960.4) | (894.2) | |||||||||
3,768.1 | 3,526.0 | ||||||||||
Less: Treasury stock, at cost: 2022 – 3.1 shares; 2021 – 0.0 shares | 120.2 | — | |||||||||
Total IPG stockholders’ equity | 3,647.9 | 3,526.0 | |||||||||
Non-controlling interests | 58.1 | 63.2 | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 3,706.0 | 3,589.2 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 18,845.0 | $ | 19,909.2 |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | |||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||||||
Net income | $ | 673.9 | $ | 637.7 | $ | 570.4 | Net income | $ | 956.1 | $ | 972.8 | $ | 354.2 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||
Depreciation and amortization of fixed assets and intangible assets | 278.5 | 202.9 | 157.1 | |||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 274.0 | 283.8 | 290.6 | ||||||||||||||||||||||||
Non-cash restructuring charges | Non-cash restructuring charges | 101.8 | 9.8 | 265.6 | ||||||||||||||||||||||||
Amortization of restricted stock and other non-cash compensation | Amortization of restricted stock and other non-cash compensation | 50.0 | 70.1 | 67.0 | ||||||||||||||||||||||||
Net losses on sales of businesses | Net losses on sales of businesses | 11.3 | 19.4 | 67.0 | ||||||||||||||||||||||||
Net amortization of bond discounts and deferred financing costs | Net amortization of bond discounts and deferred financing costs | 3.0 | 5.7 | 11.4 | ||||||||||||||||||||||||
Loss on early extinguishment of debt | Loss on early extinguishment of debt | — | 74.0 | — | ||||||||||||||||||||||||
Provision for uncollectible receivables | 10.1 | 6.5 | 9.5 | Provision for uncollectible receivables | (8.9) | (14.6) | 59.5 | |||||||||||||||||||||
Amortization of restricted stock and other non-cash compensation | 80.2 | 82.2 | 82.0 | |||||||||||||||||||||||||
Net amortization of bond discounts and deferred financing costs | 9.3 | 6.5 | 5.8 | |||||||||||||||||||||||||
Deferred income tax provision (benefit) | 9.7 | 14.1 | (9.5 | ) | ||||||||||||||||||||||||
Net losses on sales of businesses | 43.4 | 61.9 | 24.1 | |||||||||||||||||||||||||
Deferred income tax | Deferred income tax | (27.0) | (8.2) | (46.4) | ||||||||||||||||||||||||
Other | 9.9 | 1.2 | 12.7 | Other | 13.4 | 18.7 | 20.0 | |||||||||||||||||||||
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash: | Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash: | |||||||||||||||||||||||||||
Accounts receivable | (111.2 | ) | (603.8 | ) | 37.6 | Accounts receivable | (362.7) | (647.6) | 551.4 | |||||||||||||||||||
Accounts receivable, billable to clients | (38.7 | ) | (209.5 | ) | (165.5 | ) | Accounts receivable, billable to clients | 244.5 | (571.0) | 122.5 | ||||||||||||||||||
Other current assets | (27.2 | ) | (67.2 | ) | 50.1 | Other current assets | (61.1) | (45.9) | 11.9 | |||||||||||||||||||
Accounts payable | 546.0 | 428.7 | 336.4 | Accounts payable | (408.0) | 1,858.1 | (27.0) | |||||||||||||||||||||
Accrued liabilities | 27.4 | (24.2 | ) | (241.3 | ) | Accrued liabilities | (102.8) | 108.9 | 179.3 | |||||||||||||||||||
Contract liabilities | 46.5 | 44.9 | (12.0 | ) | Contract liabilities | 17.8 | 40.9 | 62.0 | ||||||||||||||||||||
Changes in operating lease right-of-use assets and lease liabilities | 0.7 | 0.0 | 0.0 | |||||||||||||||||||||||||
Other non-current assets and liabilities | (29.3 | ) | (16.8 | ) | 24.4 | Other non-current assets and liabilities | (92.6) | (99.3) | (141.8) | |||||||||||||||||||
Net cash provided by operating activities | 1,529.2 | 565.1 | 881.8 | Net cash provided by operating activities | 608.8 | 2,075.6 | 1,847.2 | |||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||
Acquisitions, net of cash acquired | Acquisitions, net of cash acquired | (232.2) | — | (4.9) | ||||||||||||||||||||||||
Capital expenditures | (198.5 | ) | (177.1 | ) | (155.9 | ) | Capital expenditures | (178.1) | (195.3) | (167.5) | ||||||||||||||||||
Acquisitions, net of cash acquired | (0.6 | ) | (2,309.8 | ) | (30.6 | ) | ||||||||||||||||||||||
Deconsolidation of a subsidiary | Deconsolidation of a subsidiary | (20.4) | (16.3) | — | ||||||||||||||||||||||||
Net proceeds from investments | Net proceeds from investments | 2.6 | 34.8 | 13.5 | ||||||||||||||||||||||||
Other investing activities | 37.4 | (4.6 | ) | (9.7 | ) | Other investing activities | (2.0) | (8.5) | (57.3) | |||||||||||||||||||
Net cash used in investing activities | (161.7 | ) | (2,491.5 | ) | (196.2 | ) | Net cash used in investing activities | (430.1) | (185.3) | (216.2) | ||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||||||
Common stock dividends | Common stock dividends | (457.3) | (427.7) | (398.1) | ||||||||||||||||||||||||
Repurchases of common stock | Repurchases of common stock | (320.1) | — | — | ||||||||||||||||||||||||
Tax payments for employee shares withheld | Tax payments for employee shares withheld | (40.3) | (25.5) | (22.3) | ||||||||||||||||||||||||
Settlement of senior note | Settlement of senior note | (29.9) | — | — | ||||||||||||||||||||||||
Net (decrease) increase in short-term borrowings | Net (decrease) increase in short-term borrowings | (29.4) | (10.8) | 1.5 | ||||||||||||||||||||||||
Distributions to non-controlling interests | Distributions to non-controlling interests | (12.3) | (15.5) | (19.5) | ||||||||||||||||||||||||
Acquisition-related payments | Acquisition-related payments | (9.3) | (28.0) | (46.6) | ||||||||||||||||||||||||
Early extinguishment of long-term debt | Early extinguishment of long-term debt | — | (1,066.8) | — | ||||||||||||||||||||||||
Repayment of long-term debt | Repayment of long-term debt | — | (504.1) | (503.7) | ||||||||||||||||||||||||
Proceeds from long-term debt | Proceeds from long-term debt | — | 998.1 | 646.2 | ||||||||||||||||||||||||
Exercise of stock options | 4.3 | 15.5 | 13.1 | Exercise of stock options | — | 8.0 | 6.5 | |||||||||||||||||||||
Proceeds from long-term debt | 0.0 | 2,494.2 | 0.0 | |||||||||||||||||||||||||
Repurchases of common stock | 0.0 | (117.1 | ) | (300.1 | ) | |||||||||||||||||||||||
Repayment of long-term debt | (403.3 | ) | (104.8 | ) | (324.6 | ) | ||||||||||||||||||||||
Common stock dividends | (363.1 | ) | (322.1 | ) | (280.3 | ) | ||||||||||||||||||||||
Tax payments for employee shares withheld | (22.4 | ) | (29.2 | ) | (38.8 | ) | ||||||||||||||||||||||
Distributions to noncontrolling interests | (21.6 | ) | (16.9 | ) | (20.4 | ) | ||||||||||||||||||||||
Net (decrease) increase in short-term borrowings | (19.8 | ) | (17.5 | ) | 3.0 | |||||||||||||||||||||||
Acquisition-related payments | (15.8 | ) | (33.7 | ) | (53.7 | ) | ||||||||||||||||||||||
Other financing activities | (1.3 | ) | (15.2 | ) | (3.1 | ) | Other financing activities | (0.8) | (11.9) | (10.2) | ||||||||||||||||||
Net cash (used in) provided by financing activities | (843.0 | ) | 1,853.2 | (1,004.9 | ) | |||||||||||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | (899.4) | (1,084.2) | (346.2) | ||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (6.0 | ) | (47.3 | ) | 16.8 | Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 1.6 | (45.4) | 31.0 | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 518.5 | (120.5 | ) | (302.5 | ) | |||||||||||||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | Net (decrease) increase in cash, cash equivalents and restricted cash | (719.1) | 760.7 | 1,315.8 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 677.2 | 797.7 | 1,100.2 | Cash, cash equivalents and restricted cash at beginning of period | 3,272.2 | 2,511.5 | 1,195.7 | |||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,195.7 | $ | 677.2 | $ | 797.7 | Cash, cash equivalents and restricted cash at end of period | $ | 2,553.1 | $ | 3,272.2 | $ | 2,511.5 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Tax | Treasury Stock | Total IPG Stockholders’ Equity | Noncontrolling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | 394.3 | $ | 39.4 | $ | 1,199.2 | $ | 1,839.9 | $ | (964.4 | ) | $ | (63.3 | ) | $ | 2,050.8 | $ | 39.6 | $ | 2,090.4 | |||||||||||||||
Net income | 554.4 | 554.4 | 16.0 | 570.4 | ||||||||||||||||||||||||||||||
Other comprehensive income | 136.6 | 136.6 | 1.5 | 138.1 | ||||||||||||||||||||||||||||||
Reclassifications related to redeemable noncontrolling interests | (0.3 | ) | (0.3 | ) | 0.9 | 0.6 | ||||||||||||||||||||||||||||
Noncontrolling interest transactions | (20.9 | ) | (20.9 | ) | ||||||||||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | (7.9 | ) | (7.9 | ) | (7.9 | ) | ||||||||||||||||||||||||||||
Repurchases of common stock | (300.1 | ) | (300.1 | ) | (300.1 | ) | ||||||||||||||||||||||||||||
Retirement of treasury stock | (13.4 | ) | (1.3 | ) | (303.1 | ) | 304.4 | 0.0 | 0.0 | |||||||||||||||||||||||||
Common stock dividends ($0.72 per share) | (280.3 | ) | (280.3 | ) | (280.3 | ) | ||||||||||||||||||||||||||||
Stock-based compensation | 5.7 | 0.6 | 86.4 | 87.0 | 87.0 | |||||||||||||||||||||||||||||
Exercise of stock options | 1.2 | 0.1 | 13.1 | 13.2 | 13.2 | |||||||||||||||||||||||||||||
Shares withheld for taxes | (1.6 | ) | (0.2 | ) | (38.8 | ) | (39.0 | ) | (39.0 | ) | ||||||||||||||||||||||||
Other | (1.3 | ) | (1.6 | ) | (2.9 | ) | (2.3 | ) | (5.2 | ) | ||||||||||||||||||||||||
Balance at December 31, 2017 | 386.2 | $ | 38.6 | $ | 955.2 | $ | 2,104.5 | $ | (827.8 | ) | $ | (59.0 | ) | $ | 2,211.5 | $ | 34.8 | $ | 2,246.3 | |||||||||||||||
Net income | 618.9 | 618.9 | 18.8 | 637.7 | ||||||||||||||||||||||||||||||
Other comprehensive loss | (113.3 | ) | (113.3 | ) | (2.8 | ) | (116.1 | ) | ||||||||||||||||||||||||||
Reclassifications related to redeemable noncontrolling interests | 0.0 | 2.4 | 2.4 | |||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (16.9 | ) | (16.9 | ) | ||||||||||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 41.8 | 1.1 | 42.9 | 42.9 | ||||||||||||||||||||||||||||||
Repurchases of common stock | (117.1 | ) | (117.1 | ) | (117.1 | ) | ||||||||||||||||||||||||||||
Retirement of treasury stock | (8.1 | ) | (0.8 | ) | (175.3 | ) | 176.1 | 0.0 | 0.0 | |||||||||||||||||||||||||
Common stock dividends ($0.84 per share) | (322.1 | ) | (322.1 | ) | (322.1 | ) | ||||||||||||||||||||||||||||
Stock-based compensation | 4.8 | 0.5 | 87.0 | 87.5 | 87.5 | |||||||||||||||||||||||||||||
Exercise of stock options | 1.9 | 0.2 | 15.5 | 15.7 | 15.7 | |||||||||||||||||||||||||||||
Shares withheld for taxes | (1.2 | ) | (0.2 | ) | (29.0 | ) | (29.2 | ) | (29.2 | ) | ||||||||||||||||||||||||
Other | 0.7 | (2.3 | ) | (1.6 | ) | 3.3 | 1.7 | |||||||||||||||||||||||||||
Balance at December 31, 2018 | 383.6 | $ | 38.3 | $ | 895.9 | $ | 2,400.1 | $ | (941.1 | ) | $ | 0.0 | $ | 2,393.2 | $ | 39.6 | $ | 2,432.8 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Tax | Total IPG Stockholders’ Equity | Noncontrolling Interests | Total Stockholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||
Balance at December 31, 2018 | 383.6 | $ | 38.3 | $ | 895.9 | $ | 2,400.1 | $ | (941.1 | ) | $ | 2,393.2 | $ | 39.6 | $ | 2,432.8 | ||||||||||||||
Cumulative effect of accounting change | 1.2 | 1.2 | 1.2 | |||||||||||||||||||||||||||
Net income | 656.0 | 656.0 | 17.9 | 673.9 | ||||||||||||||||||||||||||
Other comprehensive income | 11.1 | 11.1 | (0.7 | ) | 10.4 | |||||||||||||||||||||||||
Reclassifications related to redeemable noncontrolling interests | 11.9 | 11.9 | 12.7 | 24.6 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests | (21.6 | ) | (21.6 | ) | ||||||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | (0.2 | ) | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||
Common stock dividends ($0.94 per share) | (363.1 | ) | (363.1 | ) | (363.1 | ) | ||||||||||||||||||||||||
Stock-based compensation | 3.8 | 0.4 | 88.7 | 89.1 | 89.1 | |||||||||||||||||||||||||
Exercise of stock options | 0.6 | 0.1 | 4.2 | 4.3 | 4.3 | |||||||||||||||||||||||||
Shares withheld for taxes | (1.0 | ) | (0.1 | ) | (22.3 | ) | (22.4 | ) | (22.4 | ) | ||||||||||||||||||||
Other | (1.1 | ) | (4.1 | ) | (5.2 | ) | 1.8 | (3.4 | ) | |||||||||||||||||||||
Balance at December 31, 2019 | 387.0 | $ | 38.7 | $ | 977.3 | $ | 2,689.9 | $ | (930.0 | ) | $ | 2,775.9 | $ | 49.7 | $ | 2,825.6 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Tax | Total IPG Stockholders’ Equity | Non-controlling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 387.0 | $ | 38.7 | $ | 977.3 | $ | 2,689.9 | $ | (930.0) | $ | 2,775.9 | $ | 49.7 | $ | 2,825.6 | ||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting change | (6.6) | (6.6) | (6.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 351.1 | 351.1 | 3.1 | 354.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 49.8 | 49.8 | (0.7) | 49.1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications related to redeemable non-controlling interests | 6.4 | 6.4 | 16.9 | 23.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | (19.5) | (19.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redemption value of redeemable non-controlling interests | 41.2 | 5.0 | 46.2 | 46.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($1.02 per share) | (402.5) | (402.5) | (402.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 4.4 | 0.4 | 80.8 | 81.2 | 81.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 0.6 | 0.1 | 7.1 | 7.2 | 7.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for taxes | (1.1) | (0.2) | (22.2) | (22.4) | (22.4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 8.7 | 8.7 | (0.6) | 8.1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 390.9 | $ | 39.0 | $ | 1,099.3 | $ | 2,636.9 | $ | (880.2) | $ | 2,895.0 | $ | 48.9 | $ | 2,943.9 | ||||||||||||||||||||||||||||||||||||||
Net income | 952.8 | 952.8 | 20.0 | 972.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (14.0) | (14.0) | (1.5) | (15.5) | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications related to redeemable non-controlling interests | 11.3 | 11.3 | 11.4 | 22.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | (15.5) | (15.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redemption value of redeemable non-controlling interests | 39.8 | (7.4) | 32.4 | 32.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($1.08 per share) | (428.0) | (428.0) | (428.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 3.8 | 0.3 | 95.5 | 95.8 | 95.8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 0.6 | 0.1 | 8.7 | 8.8 | 8.8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for taxes | (1.0) | (0.1) | (28.0) | (28.1) | (28.1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 0.0 | 0.0 | (0.1) | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 394.3 | $ | 39.3 | $ | 1,226.6 | $ | 3,154.3 | $ | (894.2) | $ | 3,526.0 | $ | 63.2 | $ | 3,589.2 |
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, 2021 | 394.3 | $ | 39.3 | $ | 1,226.6 | $ | 3,154.3 | $ | (894.2) | $ | 3,526.0 | $ | 63.2 | $ | 3,589.2 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | 938.0 | 938.0 | 18.1 | 956.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (66.2) | (66.2) | (1.6) | (67.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications related to redeemable non-controlling interests | (3.1) | (3.1) | 0.5 | (2.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | (12.3) | (12.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redemption value of redeemable non-controlling interests | (3.0) | (3.0) | (3.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury stock | (7.2) | (0.7) | (199.2) | 199.9 | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (320.1) | (320.1) | (320.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($1.16 per share) | (457.2) | (457.2) | (457.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 3.5 | 0.4 | 71.2 | 71.6 | 71.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for taxes | (1.0) | (0.1) | (38.7) | (38.8) | (38.8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 0.7 | 0.7 | (9.8) | (9.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 389.6 | $ | 38.9 | $ | 1,057.5 | $ | 3,632.1 | $ | (960.4) | $ | (120.2) | $ | 3,647.9 | $ | 58.1 | $ | 3,706.0 |
Years ended December 31, | |||||||||||||||||
Total revenue: | 2022 | 2021 | 2020 | ||||||||||||||
United States | $ | 7,031.0 | $ | 6,360.2 | $ | 5,751.5 | |||||||||||
International: | |||||||||||||||||
United Kingdom | 902.7 | 880.5 | 742.9 | ||||||||||||||
Continental Europe | 867.5 | 892.8 | 763.5 | ||||||||||||||
Asia Pacific | 918.5 | 970.1 | 879.5 | ||||||||||||||
Latin America | 454.9 | 430.3 | 349.7 | ||||||||||||||
Other | 753.2 | 706.8 | 573.9 | ||||||||||||||
Total International | 3,896.8 | 3,880.5 | 3,309.5 | ||||||||||||||
Total Consolidated | $ | 10,927.8 | $ | 10,240.7 | $ | 9,061.0 |
Years ended December 31, | ||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||
Total revenue: | 2019 | 2018 | 2017 | |||||||||||||||||||||||||
Revenue before billable expenses: | Revenue before billable expenses: | 2022 | 2021 | 2020 | ||||||||||||||||||||||||
United States | $ | 6,368.7 | $ | 5,851.0 | $ | 5,417.3 | United States | $ | 6,157.7 | $ | 5,763.1 | $ | 5,211.4 | |||||||||||||||
International: | International: | |||||||||||||||||||||||||||
United Kingdom | 871.8 | 881.4 | 775.7 | United Kingdom | 742.2 | 781.5 | 664.3 | |||||||||||||||||||||
Continental Europe | 842.9 | 840.2 | 780.6 | Continental Europe | 764.6 | 799.7 | 683.6 | |||||||||||||||||||||
Asia Pacific | 1,102.3 | 1,170.8 | 1,106.4 | Asia Pacific | 772.7 | 791.4 | 710.5 | |||||||||||||||||||||
Latin America | 431.6 | 389.0 | 386.6 | Latin America | 423.6 | 396.4 | 323.4 | |||||||||||||||||||||
Other | 604.0 | 582.0 | 581.0 | Other | 588.6 | 575.8 | 471.3 | |||||||||||||||||||||
Total International | 3,852.6 | 3,863.4 | 3,630.3 | Total International | 3,291.7 | 3,344.8 | 2,853.1 | |||||||||||||||||||||
Total Consolidated | $ | 10,221.3 | $ | 9,714.4 | $ | 9,047.6 | Total Consolidated | $ | 9,449.4 | $ | 9,107.9 | $ | 8,064.5 |
MD&E | Years ended December 31, | ||||||||||||||||
Total revenue: | 2022 | 2021 | 2020 | ||||||||||||||
United States | $ | 2,547.8 | $ | 2,432.6 | $ | 2,196.6 | |||||||||||
International | 1,648.9 | 1,629.1 | 1,323.8 | ||||||||||||||
Total MD&E | $ | 4,196.7 | $ | 4,061.7 | $ | 3,520.4 | |||||||||||
Revenue before billable expenses: | |||||||||||||||||
United States | $ | 2,512.1 | $ | 2,403.6 | $ | 2,168.9 | |||||||||||
International | 1,599.4 | 1,570.0 | 1,282.3 | ||||||||||||||
Total MD&E | $ | 4,111.5 | $ | 3,973.6 | $ | 3,451.2 |
IA&C | Years ended December 31, | ||||||||||||||||
Total revenue: | 2022 | 2021 | 2020 | ||||||||||||||
United States | $ | 2,768.3 | $ | 2,555.4 | $ | 2,323.0 | |||||||||||
International | 1,557.2 | 1,621.3 | 1,401.6 | ||||||||||||||
Total IA&C | $ | 4,325.5 | $ | 4,176.7 | $ | 3,724.6 | |||||||||||
Revenue before billable expenses: | |||||||||||||||||
United States | $ | 2,662.5 | $ | 2,454.4 | $ | 2,230.3 | |||||||||||
International | 1,289.2 | 1,369.4 | 1,197.2 | ||||||||||||||
Total IA&C | $ | 3,951.7 | $ | 3,823.8 | $ | 3,427.5 |
Years ended December 31, | |||||||||||
Net revenue: | 2019 | 2018 | 2017 | ||||||||
United States | $ | 5,386.1 | $ | 4,825.0 | $ | 4,458.8 | |||||
International: | |||||||||||
United Kingdom | 727.0 | 711.7 | 613.1 | ||||||||
Continental Europe | 742.4 | 737.5 | 687.8 | ||||||||
Asia Pacific | 858.3 | 896.8 | 866.9 | ||||||||
Latin America | 389.9 | 350.1 | 350.8 | ||||||||
Other | 521.4 | 510.5 | 496.1 | ||||||||
Total International | 3,239.0 | 3,206.6 | 3,014.7 | ||||||||
Total Consolidated | $ | 8,625.1 | $ | 8,031.6 | $ | 7,473.5 |
SC&E | Years ended December 31, | ||||||||||||||||
Total revenue: | 2022 | 2021 | 2020 | ||||||||||||||
United States | $ | 1,714.9 | $ | 1,372.2 | $ | 1,231.9 | |||||||||||
International | 690.7 | 630.1 | 584.1 | ||||||||||||||
Total SC&E | $ | 2,405.6 | $ | 2,002.3 | $ | 1,816.0 | |||||||||||
Revenue before billable expenses: | |||||||||||||||||
United States | $ | 983.1 | $ | 905.1 | $ | 812.2 | |||||||||||
International | 403.1 | 405.4 | 373.6 | ||||||||||||||
Total SC&E | $ | 1,386.2 | $ | 1,310.5 | $ | 1,185.8 |
IAN | Years ended December 31, | ||||||||||
Total revenue: | 2019 | 2018 | 2017 | ||||||||
United States | $ | 4,912.5 | $ | 4,447.0 | $ | 4,062.3 | |||||
International | 3,113.9 | 3,109.1 | 2,947.3 | ||||||||
Total IAN | $ | 8,026.4 | $ | 7,556.1 | $ | 7,009.6 | |||||
Net revenue: | |||||||||||
United States | $ | 4,557.5 | $ | 4,000.4 | $ | 3,660.6 | |||||
International | 2,790.7 | 2,767.1 | 2,606.1 | ||||||||
Total IAN | $ | 7,348.2 | $ | 6,767.5 | $ | 6,266.7 |
CMG | Years ended December 31, | ||||||||||
Total revenue: | 2019 | 2018 | 2017 | ||||||||
United States | $ | 1,456.2 | $ | 1,404.0 | $ | 1,355.0 | |||||
International | 738.7 | 754.3 | 683.0 | ||||||||
Total CMG | $ | 2,194.9 | $ | 2,158.3 | $ | 2,038.0 | |||||
Net revenue: | |||||||||||
United States | $ | 828.6 | $ | 824.6 | $ | 798.2 | |||||
International | 448.3 | 439.5 | 408.6 | ||||||||
Total CMG | $ | 1,276.9 | $ | 1,264.1 | $ | 1,206.8 |
December 31, 2019 | December 31, 2018 | ||||||
Accounts receivable, net of allowance of $40.2 and $42.5, respectively | $ | 5,209.2 | $ | 5,126.6 | |||
Accounts receivable, billable to clients | 1,934.1 | 1,900.6 | |||||
Contract assets | 63.0 | 67.9 | |||||
Contract liabilities (deferred revenue) | 585.6 | 533.9 |
December 31, 2022 | December 31, 2021 | ||||||||||
Accounts receivable, net of allowance of $48.6 and $68.5, respectively | $ | 5,316.0 | $ | 5,177.7 | |||||||
Accounts receivable, billable to clients | 2,023.0 | 2,347.2 | |||||||||
Contract assets | 67.4 | 62.3 | |||||||||
Contract liabilities (deferred revenue) | 680.0 | 688.5 |
Twelve months ended December 31, 2019 | ||||
Operating lease cost | $ | 325.2 | ||
Short-term lease cost | 13.8 | |||
Sublease income | (12.9 | ) | ||
Total lease cost | $ | 326.1 | ||
Twelve months ended December 31, 2019 | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 334.1 | ||
Right-of-use assets obtained in exchange for lease liabilities | $ | 422.8 | ||
As of December 31, 2019 | ||||
Weighted-average remaining lease term | Eight years | |||
Weighted-average discount rate | 4.26 | % |
Years ended December 31, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Operating lease cost | $ | 290.7 | $ | 306.0 | $ | 318.5 | ||||||||||||||
Short-term lease cost | 6.4 | 8.1 | 10.6 | |||||||||||||||||
Sublease income | (23.8) | (21.1) | (15.8) | |||||||||||||||||
Total lease cost | $ | 273.3 | $ | 293.0 | $ | 313.3 | ||||||||||||||
Cash paid related to operating lease liabilities | $ | 320.9 | $ | 347.6 | $ | 335.7 | ||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | 93.0 | $ | 431.0 | $ | 274.4 | ||||||||||||||
As of December 31, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Weighted-average remaining lease term | Eight years | Eight years | Eight years | |||||||||||||||||
Weighted-average discount rate | 3.51 | % | 3.45 | % | 4.00 | % |
Period | Net Rent | ||
2020 | $ | 333.5 | |
2021 | 300.7 | ||
2022 | 267.5 | ||
2023 | 209.7 | ||
2024 | 183.5 | ||
Thereafter | 716.1 | ||
Total future lease payments | 2,011.0 | ||
Less: imputed interest | 314.2 | ||
Present value of future lease payments | 1,696.8 | ||
Less: current portion of operating leases | 267.2 | ||
Non-current operating leases | $ | 1,429.6 |
Period | Rent Obligations | Sublease Rental Income | Net Rent | ||||||||
2019 | $ | 352.0 | $ | (7.7 | ) | $ | 344.3 | ||||
2020 | 324.3 | (5.2 | ) | 319.1 | |||||||
2021 | 282.3 | (2.2 | ) | 280.1 | |||||||
2022 | 242.5 | (1.3 | ) | 241.2 | |||||||
2023 | 184.0 | (0.6 | ) | 183.4 | |||||||
Thereafter | 714.6 | (0.5 | ) | 714.1 | |||||||
Total future lease payments | $ | 2,099.7 | $ | (17.5 | ) | $ | 2,082.2 |
Period | Net Rent | ||||
2023 | $ | 279.1 | |||
2024 | 278.0 | ||||
2025 | 247.9 | ||||
2026 | 229.0 | ||||
2027 | 201.2 | ||||
Thereafter | 569.3 | ||||
Total future lease payments | 1,804.5 | ||||
Less: imputed interest | 188.5 | ||||
Present value of future lease payments | 1,616.0 | ||||
Less: current portion of operating leases | 235.9 | ||||
Non-current operating leases | $ | 1,380.1 |
Effective Interest Rate | December 31, | |||||||||||||||||
2019 | 2018 | |||||||||||||||||
Book Value | Fair Value 1 | Book Value | Fair Value 1 | |||||||||||||||
3.50% Senior Notes due 2020 (less unamortized discount and issuance costs of $0.4 and $1.1, respectively) | 3.89 | % | $ | 498.5 | $ | 505.4 | $ | 496.6 | $ | 499.9 | ||||||||
3.75% Senior Notes due 2021 (less unamortized discount and issuance costs of $0.2 and $1.9, respectively) | 3.98 | % | 497.9 | 513.5 | 496.8 | 503.2 | ||||||||||||
4.00% Senior Notes due 2022 (less unamortized discount and issuance costs of $0.7 and $0.6, respectively) | 4.13 | % | 248.7 | 258.8 | 248.2 | 250.3 | ||||||||||||
3.75% Senior Notes due 2023 (less unamortized discount and issuance costs of $0.5 and $1.3, respectively) | 4.32 | % | 498.2 | 522.8 | 497.7 | 491.4 | ||||||||||||
4.20% Senior Notes due 2024 (less unamortized discount and issuance costs of $0.4 and $1.8, respectively) | 4.24 | % | 497.8 | 538.1 | 497.3 | 492.6 | ||||||||||||
4.65% Senior Notes due 2028 (less unamortized discount and issuance costs of $1.5 and $3.9, respectively) | 4.78 | % | 494.6 | 564.3 | 494.0 | 494.1 | ||||||||||||
5.40% Senior Notes due 2048 (less unamortized discount and issuance costs of $2.7 and $5.4, respectively) | 5.48 | % | 491.9 | 617.1 | 491.7 | 474.1 | ||||||||||||
Term Loan due 2021 - LIBOR plus 1.25% | — | — | 400.0 | 400.0 | ||||||||||||||
Other notes payable and capitalized leases | 46.3 | 45.5 | 38.0 | 38.0 | ||||||||||||||
Total long-term debt | 3,273.9 | 3,660.3 | ||||||||||||||||
Less: current portion | 502.0 | 0.1 | ||||||||||||||||
Long-term debt, excluding current portion | $ | 2,771.9 | $ | 3,660.2 |
Effective Interest Rate | December 31, | ||||||||||||||||
2022 1 | 2021 1 | ||||||||||||||||
4.200% Senior Notes due 2024 (less unamortized discount and issuance costs of $0.0 and $0.3, respectively) | 4.240 | % | $ | 249.7 | $ | 249.4 | |||||||||||
4.650% Senior Notes due 2028 (less unamortized discount and issuance costs of $1.0 and $2.6, respectively) | 4.780 | % | 496.4 | 495.8 | |||||||||||||
4.750% Senior Notes due 2030 (less unamortized discount and issuance costs of $2.9 and $4.5, respectively) | 4.920 | % | 642.6 | 641.7 | |||||||||||||
2.400% Senior Notes due 2031 (less unamortized discount and issuance costs of $0.7 and $3.8, respectively) | 2.512 | % | 495.5 | 495.0 | |||||||||||||
3.375% Senior Notes due 2041 (less unamortized discount and issuance costs of $1.0 and $5.3, respectively) | 3.448 | % | 493.7 | 493.4 | |||||||||||||
5.400% Senior Notes due 2048 (less unamortized discount and issuance costs of $2.6 and $4.8, respectively) | 5.480 | % | 492.6 | 492.3 | |||||||||||||
Other notes payable and capitalized leases | 0.8 | 41.7 | |||||||||||||||
Total long-term debt | 2,871.3 | 2,909.3 | |||||||||||||||
Less: current portion | 0.6 | 0.7 | |||||||||||||||
Long-term debt, excluding current portion | $ | 2,870.7 | $ | 2,908.6 |
2020 | $ | 502.0 | |
2021 | 501.4 | ||
2022 | 248.9 | ||
2023 | 498.3 | ||
2024 | 497.8 | ||
Thereafter | 1,025.5 | ||
Total long-term debt | $ | 3,273.9 |
2023 | $ | 0.6 | |||
2024 | 249.8 | ||||
2025 | 0.1 | ||||
2026 | 0.0 | ||||
2027 | 0.0 | ||||
Thereafter | 2,620.8 | ||||
Total long-term debt | $ | 2,871.3 |
Financial | ||||||||
Leverage ratio (not greater than): 1 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net income available to IPG common stockholders | $ | 938.0 | $ | 952.8 | $ | 351.1 | |||||||||||
Weighted-average number of common shares outstanding - basic | 391.5 | 393.0 | 389.4 | ||||||||||||||
Dilutive effect of stock options and restricted shares | 3.6 | 5.4 | 3.8 | ||||||||||||||
Weighted-average number of common shares outstanding - diluted | 395.1 | 398.4 | 393.2 | ||||||||||||||
Earnings per share available to IPG common stockholders: | |||||||||||||||||
Basic | $ | 2.40 | $ | 2.42 | $ | 0.90 | |||||||||||
Diluted | $ | 2.37 | $ | 2.39 | $ | 0.89 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net income available to IPG common stockholders | $ | 656.0 | $ | 618.9 | $ | 554.4 | |||||
Weighted-average number of common shares outstanding - basic | 386.1 | 383.3 | 389.6 | ||||||||
Dilutive effect of stock options and restricted shares | 5.1 | 5.7 | 7.7 | ||||||||
Weighted-average number of common shares outstanding - diluted | 391.2 | 389.0 | 397.3 | ||||||||
Earnings per share available to IPG common stockholders: | |||||||||||
Basic | $ | 1.70 | $ | 1.61 | $ | 1.42 | |||||
Diluted | $ | 1.68 | $ | 1.59 | $ | 1.40 |
October 1, 2018 | |||
Cash and cash equivalents | $ | 13.3 | |
Accounts receivable | 112.9 | ||
Accounts receivable, billable to clients | 8.3 | ||
Other current assets | 28.2 | ||
Property and equipment, net | 159.7 | ||
Deferred income taxes | (0.6 | ) | |
Goodwill | 1,110.8 | ||
Intangible assets, net | 995.0 | ||
Other non-current assets | 8.3 | ||
Accounts payable | (37.1 | ) | |
Accrued liabilities | (46.9 | ) | |
Contract liabilities | (23.2 | ) | |
Other non-current liabilities | (0.8 | ) | |
Net assets acquired | $ | 2,327.9 |
Fair Value | Weighted Average Amortization Period (Years) | ||||
Customer lists | $ | 600.0 | 15.0 | ||
Know-how and technology | 235.0 | 9.0 | |||
Trade names | 160.0 | 15.0 to indefinite | |||
Total intangible assets | $ | 995.0 |
(Unaudited) | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
Pro forma revenues | $ | 10,230.4 | $ | 9,736.1 | |||
Pro forma net income | 642.2 | 519.2 |
Years ended December 31, | ||||||||||||||||||||||||||||
Years ended December 31, | 2022 | 2021 | 2020 | |||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||||||
Cost of investment: current-year acquisitions 1 | $ | 0.6 | $ | 2,323.4 | $ | 36.8 | ||||||||||||||||||||||
Cost of investment: current-year acquisitions | Cost of investment: current-year acquisitions | $ | 235.4 | $ | — | $ | 8.5 | |||||||||||||||||||||
Cost of investment: prior-year acquisitions | 15.8 | 33.9 | 54.6 | Cost of investment: prior-year acquisitions | 9.3 | 28.0 | 45.9 | |||||||||||||||||||||
Less: net cash acquired | — | (13.8 | ) | (7.1 | ) | Less: net cash acquired | (3.2) | — | (2.9) | |||||||||||||||||||
Total cost of investment | 16.4 | 2,343.5 | 84.3 | Total cost of investment | 241.5 | 28.0 | 51.5 | |||||||||||||||||||||
Operating payments 2 | 9.3 | 19.4 | 47.1 | |||||||||||||||||||||||||
Total cash paid for acquisitions 3 | $ | 25.7 | $ | 2,362.9 | $ | 131.4 | ||||||||||||||||||||||
Operating payments 1 | Operating payments 1 | 9.6 | 39.1 | 2.9 | ||||||||||||||||||||||||
Total cash paid for acquisitions 2 | Total cash paid for acquisitions 2 | $ | 251.1 | $ | 67.1 | $ | 54.4 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Balance at beginning of period | $ | 15.6 | $ | 93.1 | $ | 164.7 | |||||||||||
Change in related non-controlling interests balance | (0.5) | 2.2 | (5.4) | ||||||||||||||
Changes in redemption value of redeemable non-controlling interests: | |||||||||||||||||
Additions | 30.3 | 0.0 | 0.0 | ||||||||||||||
Redemptions and other | (9.9) | (41.9) | (20.6) | ||||||||||||||
Redemption value adjustments | 2.8 | (37.8) | (45.6) | ||||||||||||||
Balance at end of period | $ | 38.3 | $ | 15.6 | $ | 93.1 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Balance at beginning of period | $ | 167.9 | $ | 252.1 | $ | 252.8 | |||||
Change in related noncontrolling interests balance | (2.8 | ) | (10.7 | ) | (2.8 | ) | |||||
Changes in redemption value of redeemable noncontrolling interests: | |||||||||||
Additions | 24.3 | 0.0 | 7.7 | ||||||||
Redemptions and other | (24.9 | ) | (33.7 | ) | (18.5 | ) | |||||
Redemption value adjustments | 0.2 | (39.8 | ) | 12.9 | |||||||
Balance at end of period | $ | 164.7 | $ | 167.9 | $ | 252.1 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Balance at beginning of period | $ | 68.5 | $ | 98.3 | $ | 40.2 | |||||||||||
Cumulative effect of accounting change 1 | 0.0 | 0.0 | 9.0 | ||||||||||||||
Charges to costs and expenses 2 | (5.8) | (14.9) | 50.5 | ||||||||||||||
Adjustments: | |||||||||||||||||
(Dispositions)/Acquisitions | (0.9) | (3.2) | 8.6 | ||||||||||||||
Uncollectible accounts written off | (12.8) | (9.8) | (11.2) | ||||||||||||||
Recoveries | 1.9 | 0.3 | 0.2 | ||||||||||||||
Foreign currency translation adjustments | (2.3) | (2.2) | 1.0 | ||||||||||||||
Balance at end of period | $ | 48.6 | $ | 68.5 | $ | 98.3 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Balance at beginning of period | $ | 42.5 | $ | 42.7 | $ | 55.7 | |||||
Charges to costs and expenses | 10.1 | 6.5 | 9.5 | ||||||||
Adjustments: | |||||||||||
Acquisitions/(dispositions) | (0.3 | ) | 2.2 | (1.0 | ) | ||||||
Uncollectible accounts written off | (11.9 | ) | (7.1 | ) | (25.5 | ) | |||||
Foreign currency translation adjustments | (0.2 | ) | (1.8 | ) | 4.0 | ||||||
Balance at end of period | $ | 40.2 | $ | 42.5 | $ | 42.7 |
December 31, | ||||||||
2019 | 2018 | |||||||
Furniture and equipment | $ | 694.3 | $ | 681.7 | ||||
Leasehold improvements | 634.9 | 629.0 | ||||||
Internal-use computer software | 422.0 | 368.5 | ||||||
Land and buildings | 143.3 | 146.6 | ||||||
Gross property and equipment | 1,894.5 | 1,825.8 | ||||||
Less: accumulated depreciation and amortization | (1,116.4 | ) | (1,034.9 | ) | ||||
Total property and equipment, net | $ | 778.1 | $ | 790.9 |
December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Furniture and equipment | $ | 640.8 | $ | 653.5 | ||||||||||
Leasehold improvements | 528.6 | 571.3 | ||||||||||||
Internal-use computer software | 581.4 | 513.5 | ||||||||||||
Land and buildings | 131.4 | 139.1 | ||||||||||||
Gross property and equipment | 1,882.2 | 1,877.4 | ||||||||||||
Less: accumulated depreciation and amortization | (1,244.8) | (1,201.6) | ||||||||||||
Total property and equipment, net | $ | 637.4 | $ | 675.8 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Salaries, benefits and related expenses | $ | 554.0 | $ | 685.4 | |||||||
Income taxes payable | 64.7 | 42.8 | |||||||||
Interest | 37.3 | 39.0 | |||||||||
Office and related expenses | 28.9 | 30.5 | |||||||||
Acquisition obligations | 18.7 | 15.4 | |||||||||
Restructuring charges | 2.2 | 8.1 | |||||||||
Other | 81.3 | 96.9 | |||||||||
Total accrued liabilities | $ | 787.1 | $ | 918.1 |
December 31, | |||||||
2019 | 2018 | ||||||
Salaries, benefits and related expenses | $ | 494.1 | $ | 494.9 | |||
Acquisition obligations | 45.7 | 65.7 | |||||
Office and related expenses | 26.9 | 52.2 | |||||
Interest | 38.8 | 43.6 | |||||
Restructuring charges | 1.6 | 0.0 | |||||
Other | 135.7 | 150.5 | |||||
Total accrued liabilities | $ | 742.8 | $ | 806.9 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net losses on sales of businesses | $ | (43.4 | ) | $ | (61.9 | ) | $ | (24.1 | ) | ||
Other | 0.5 | (7.7 | ) | (2.1 | ) | ||||||
Total other expense, net | $ | (42.9 | ) | $ | (69.6 | ) | $ | (26.2 | ) |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net losses on sales of businesses | $ | (11.3) | $ | (19.4) | $ | (67.0) | |||||||||||
Loss on early extinguishment of debt | — | (74.0) | — | ||||||||||||||
Other | 10.3 | 22.7 | 2.6 | ||||||||||||||
Total other expense, net | $ | (1.0) | $ | (70.7) | $ | (64.4) |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Number of shares repurchased | 10.3 | — | — | ||||||||||||||
Aggregate cost, including fees | $ | 320.1 | $ | — | $ | — | |||||||||||
Average price per share, including fees | $ | 31.01 | $ | — | $ | — |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cash paid for interest | $ | 192.7 | $ | 88.7 | $ | 82.3 | |||||
Cash paid for income taxes, net of refunds 1 | 150.2 | 207.9 | 228.4 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash paid for interest | $ | 171.1 | $ | 175.9 | $ | 182.2 | |||||||||||
Changes in operating lease right-of-use assets and lease liabilities 1 | 55.1 | (35.2) | 192.6 | ||||||||||||||
Cash paid for income taxes, net of refunds 2 | 255.7 | 229.1 | 89.1 | ||||||||||||||
IAN 1 | CMG | Total 2 | ||||||||||
Balance as of December 31, 2017 | $ | 3,161.8 | $ | 658.6 | $ | 3,820.4 | ||||||
Acquisitions | 1,112.0 | 20.0 | 1,132.0 | |||||||||
Foreign currency and other | (64.5 | ) | (12.0 | ) | (76.5 | ) | ||||||
Balance as of December 31, 2018 | $ | 4,209.3 | $ | 666.6 | $ | 4,875.9 | ||||||
Acquisitions | 2.1 | 0.7 | 2.8 | |||||||||
Foreign currency and other | 14.4 | 1.3 | 15.7 | |||||||||
Balance as of December 31, 2019 | $ | 4,225.8 | $ | 668.6 | $ | 4,894.4 |
IAN | DXTRA | MD&E | IA&C | SC&E | Total 1 | |||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | 4,264.5 | $ | 681.0 | $ | — | $ | — | $ | — | $ | 4,945.5 | ||||||||||||||||||||||||||
Dispositions | (0.2) | — | — | — | — | (0.2) | ||||||||||||||||||||||||||||||||
Foreign currency and other | (32.7) | (3.9) | — | — | — | (36.6) | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | 4,231.6 | $ | 677.1 | $ | — | $ | — | $ | — | $ | 4,908.7 | ||||||||||||||||||||||||||
Goodwill Reallocation | (4,231.6) | (677.1) | 2,293.0 | 1,920.2 | 695.5 | — | ||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | $ | — | $ | — | $ | 2,293.0 | $ | 1,920.2 | $ | 695.5 | $ | 4,908.7 | ||||||||||||||||||||||||||
Acquisitions/(Dispositions) and Deconsolidations | — | — | 209.5 | (6.5) | 0.0 | 203.0 | ||||||||||||||||||||||||||||||||
Foreign currency and other | — | — | (17.9) | (32.1) | (11.1) | (61.1) | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | — | $ | — | $ | 2,484.6 | $ | 1,881.6 | $ | 684.4 | $ | 5,050.6 |
December 31, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | |||||||||||||||||||||||||||||||||
Customer lists | $ | 873.1 | $ | (378.4) | $ | 494.7 | $ | 855.7 | $ | (345.0) | $ | 510.7 | ||||||||||||||||||||||||||
Know-how and technology | 239.2 | (111.1) | 128.1 | 235.3 | (85.0) | 150.3 | ||||||||||||||||||||||||||||||||
Trade names | 231.8 | (47.4) | 184.4 | 222.8 | (47.3) | 175.5 | ||||||||||||||||||||||||||||||||
Other | 16.2 | (5.3) | 10.9 | 16.2 | (5.2) | 11.0 | ||||||||||||||||||||||||||||||||
Total 1 | $ | 1,360.3 | $ | (542.2) | $ | 818.1 | $ | 1,330.0 | $ | (482.5) | $ | 847.5 |
December 31, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | |||||||||||||||||||
Customer lists | $ | 861.4 | $ | (244.6 | ) | $ | 616.8 | $ | 857.2 | $ | (190.9 | ) | $ | 666.3 | ||||||||||
Know-how and technology | 235.0 | (32.9 | ) | 202.1 | 235.0 | (6.5 | ) | 228.5 | ||||||||||||||||
Trade names | 226.2 | (41.3 | ) | 184.9 | 226.2 | (36.8 | ) | 189.4 | ||||||||||||||||
Other | 14.3 | (3.8 | ) | 10.5 | 14.3 | (3.8 | ) | 10.5 | ||||||||||||||||
Total | $ | 1,336.9 | $ | (322.6 | ) | $ | 1,014.3 | $ | 1,332.7 | $ | (238.0 | ) | $ | 1,094.7 |
2023 | 2024 | 2025 | 2026 | 2027 | ||||||||||||||||||||||||||||
Estimated amortization expense | $ | 83.9 | $ | 81.6 | $ | 78.9 | $ | 76.8 | $ | 65.2 |
2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||||||||
Estimated amortization expense | $ | 88.4 | $ | 86.9 | $ | 82.9 | $ | 78.6 | $ | 76.8 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Domestic | $ | 557.4 | $ | 474.0 | $ | 514.8 | |||||
Foreign | 320.9 | 364.0 | 326.0 | ||||||||
Total | $ | 878.3 | $ | 838.0 | $ | 840.8 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Domestic | $ | 707.4 | $ | 653.6 | $ | 279.9 | |||||||||||
Foreign | 561.5 | 568.5 | 81.4 | ||||||||||||||
Total | $ | 1,268.9 | $ | 1,222.1 | $ | 361.3 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
U.S. federal income taxes (including foreign withholding taxes): | |||||||||||||||||
Current | $ | 168.0 | $ | 105.4 | $ | (52.6) | |||||||||||
Deferred | (34.9) | 13.2 | (12.0) | ||||||||||||||
$ | 133.1 | $ | 118.6 | $ | (64.6) | ||||||||||||
State and local income taxes: | |||||||||||||||||
Current | $ | 40.4 | $ | 27.4 | $ | (3.7) | |||||||||||
Deferred | (5.3) | (0.9) | 0.5 | ||||||||||||||
$ | 35.1 | $ | 26.5 | $ | (3.2) | ||||||||||||
Foreign income taxes: | |||||||||||||||||
Current | $ | 137.0 | $ | 127.2 | $ | 110.7 | |||||||||||
Deferred | 13.2 | (20.5) | (34.9) | ||||||||||||||
$ | 150.2 | $ | 106.7 | $ | 75.8 | ||||||||||||
Total | $ | 318.4 | $ | 251.8 | $ | 8.0 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
U.S. federal income taxes (including foreign withholding taxes): | |||||||||||
Current | $ | 92.2 | $ | 38.1 | $ | 154.1 | |||||
Deferred | 9.5 | 29.9 | (37.6 | ) | |||||||
101.7 | 68.0 | 116.5 | |||||||||
State and local income taxes: | |||||||||||
Current | 10.7 | 25.1 | 18.8 | ||||||||
Deferred | 8.7 | 3.4 | 19.7 | ||||||||
19.4 | 28.5 | 38.5 | |||||||||
Foreign income taxes: | |||||||||||
Current | 92.2 | 121.9 | 107.9 | ||||||||
Deferred | (8.5 | ) | (19.2 | ) | 8.4 | ||||||
83.7 | 102.7 | 116.3 | |||||||||
Total | $ | 204.8 | $ | 199.2 | $ | 271.3 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
U.S. federal statutory income tax rate | 21.0 | % | 21.0 | % | 35.0 | % | |||||
Income tax provision at U.S. federal statutory rate | $ | 184.5 | $ | 176.0 | $ | 294.3 | |||||
State and local income taxes, net of U.S. federal income tax benefit | 14.0 | 23.8 | 23.5 | ||||||||
Impact of foreign operations, including withholding taxes | 34.2 | 50.7 | (6.7 | ) | |||||||
U.S. tax incentives | (21.4 | ) | (17.5 | ) | (1.3 | ) | |||||
Change in net valuation allowance 1 | (26.3 | ) | (16.9 | ) | 1.4 | ||||||
Divestitures | 9.6 | 11.7 | 1.1 | ||||||||
U.S. federal tax credits | 0.4 | (48.1 | ) | (0.4 | ) | ||||||
Stock compensation | (3.3 | ) | (6.8 | ) | (15.3 | ) | |||||
Increase in unrecognized tax benefits | 14.1 | 8.4 | 7.0 | ||||||||
Net impact of the Tax Act | 0.0 | 13.4 | (36.0 | ) | |||||||
Other | (1.0 | ) | 4.5 | 3.7 | |||||||
Provision for income taxes | $ | 204.8 | $ | 199.2 | $ | 271.3 | |||||
Effective income tax rate on operations | 23.3 | % | 23.8 | % | 32.3 | % |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
U.S. federal statutory income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Income tax provision at U.S. federal statutory rate | $ | 266.5 | $ | 256.6 | $ | 75.9 | |||||||||||
State and local income taxes, net of U.S. federal income tax benefit | 27.7 | 21.0 | 9.4 | ||||||||||||||
Impact of foreign operations, including withholding taxes | 37.9 | 47.8 | 49.9 | ||||||||||||||
U.S. tax incentives | (23.0) | (28.4) | (23.6) | ||||||||||||||
Change in net valuation allowance 1 | 8.0 | (59.4) | (1.3) | ||||||||||||||
Divestitures | 1.1 | 1.1 | 8.6 | ||||||||||||||
Increase in unrecognized tax benefits | 3.5 | 13.2 | 30.8 | ||||||||||||||
Settlement of income tax audit | 0.0 | 0.0 | (136.2) | ||||||||||||||
Other | (3.3) | (0.1) | (5.5) | ||||||||||||||
Provision for income taxes | $ | 318.4 | $ | 251.8 | $ | 8.0 | |||||||||||
Effective income tax rate on operations | 25.1 | % | 20.6 | % | 2.2 | % |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Postretirement/post-employment benefits | $ | 12.4 | $ | 14.8 | |||||||
Deferred compensation | 78.1 | 99.5 | |||||||||
Pension costs | 6.7 | 9.7 | |||||||||
Interest | 38.7 | 41.8 | |||||||||
Accruals and reserves | 34.8 | 33.7 | |||||||||
Allowance for credit losses | 12.5 | 16.6 | |||||||||
Basis differences in fixed assets | 6.3 | — | |||||||||
Operating lease liabilities | 343.5 | 373.1 | |||||||||
Tax loss/tax credit carry forwards | 267.0 | 304.6 | |||||||||
Other | 43.3 | 69.3 | |||||||||
Deferred tax assets | 843.3 | 963.1 | |||||||||
Valuation allowance for deferred tax assets | (145.8) | (146.0) | |||||||||
Net deferred tax assets | $ | 697.5 | $ | 817.1 | |||||||
Basis differences in fixed assets | $ | — | $ | (84.7) | |||||||
Basis differences in intangible assets | (369.8) | (351.8) | |||||||||
Operating lease right-of-use assets | (269.8) | (315.2) | |||||||||
Prepaid expenses | (10.0) | (9.4) | |||||||||
Deferred revenue | (1.8) | (1.8) | |||||||||
Unremitted foreign earnings | (4.9) | (6.9) | |||||||||
Deferred tax liabilities | (656.3) | (769.8) | |||||||||
Total net deferred tax assets1 | $ | 41.2 | $ | 47.3 |
December 31, | |||||||
2019 | 2018 | ||||||
Postretirement/post-employment benefits | $ | 16.7 | $ | 17.9 | |||
Deferred compensation | 99.5 | 99.8 | |||||
Pension costs | 23.7 | 22.2 | |||||
Basis differences in fixed assets | (75.3 | ) | (71.7 | ) | |||
Rent | — | 27.3 | |||||
Interest | 45.5 | 48.8 | |||||
Accruals and reserves | 19.4 | 21.0 | |||||
Allowance for doubtful accounts | 6.5 | 7.4 | |||||
Basis differences in intangible assets | (321.0 | ) | (302.7 | ) | |||
Investments in equity securities | 0.3 | 1.2 | |||||
Operating lease right-of-use assets | (335.2 | ) | — | ||||
Operating lease liabilities | 361.4 | — | |||||
Tax loss/tax credit carry forwards | 297.1 | 345.6 | |||||
Prepaid expenses | (6.7 | ) | (6.3 | ) | |||
Deferred revenue | (21.7 | ) | (26.8 | ) | |||
Unremitted foreign earnings | (1.3 | ) | (9.5 | ) | |||
Other | 44.5 | 38.2 | |||||
Total deferred tax assets, net | 153.4 | 212.4 | |||||
Valuation allowance | (164.2 | ) | (211.0 | ) | |||
Net deferred tax (liabilities) assets | $ | (10.8 | ) | $ | 1.4 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Balance at beginning of period | $ | 211.0 | $ | 243.0 | $ | 255.6 | |||||
Reversed to costs and expenses | (24.9 | ) | (28.0 | ) | (4.6 | ) | |||||
(Reversed) charged to gross tax assets and other accounts 1 | (19.8 | ) | 5.1 | (27.3 | ) | ||||||
Foreign currency translation | (2.1 | ) | (9.1 | ) | 19.3 | ||||||
Balance at end of period | $ | 164.2 | $ | 211.0 | $ | 243.0 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Balance at beginning of period | $ | 146.0 | $ | 197.1 | $ | 164.2 | |||||||||||
Charged (reversed) to costs and expenses | 8.9 | (45.1) | 17.3 | ||||||||||||||
Charged to gross tax assets and other accounts 1 | 0.6 | 0.9 | 9.9 | ||||||||||||||
Foreign currency translation | (9.7) | (6.9) | 5.7 | ||||||||||||||
Balance at end of period | $ | 145.8 | $ | 146.0 | $ | 197.1 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Balance at beginning of period | $ | 335.4 | $ | 271.9 | $ | 246.7 | |||||
Increases as a result of tax positions taken during a prior year | 22.7 | 65.9 | 6.3 | ||||||||
Decreases as a result of tax positions taken during a prior year | (25.8 | ) | (10.8 | ) | (8.1 | ) | |||||
Settlements with taxing authorities | (8.1 | ) | (6.5 | ) | (0.8 | ) | |||||
Lapse of statutes of limitation | (0.6 | ) | (1.7 | ) | (3.3 | ) | |||||
Increases as a result of tax positions taken during the current year | 21.7 | 16.6 | 31.1 | ||||||||
Balance at end of period | $ | 345.3 | $ | 335.4 | $ | 271.9 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Balance at beginning of period | $ | 262.6 | $ | 217.6 | $ | 345.3 | |||||||||||
Increases as a result of tax positions taken during a prior year | 4.9 | 17.2 | 18.1 | ||||||||||||||
Decreases as a result of tax positions taken during a prior year | (10.1) | (10.4) | (165.7) | ||||||||||||||
Settlements with taxing authorities | (0.7) | (8.7) | (6.2) | ||||||||||||||
Lapse of statutes of limitation | (6.4) | (6.2) | (0.7) | ||||||||||||||
Increases as a result of tax positions taken during the current year | 33.2 | 53.1 | 26.8 | ||||||||||||||
Balance at end of period | $ | 283.5 | $ | 262.6 | $ | 217.6 | |||||||||||
Foreign Currency Translation Adjustments | Derivative Instruments | Defined Benefit Pension and Other Postretirement Plans | Total | ||||||||||||||||||||
Balance as of December 31, 2020 | $ | (637.6) | $ | 6.8 | $ | (249.4) | $ | (880.2) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | (84.6) | 12.9 | 47.6 | (24.1) | |||||||||||||||||||
Amount reclassified from accumulated other comprehensive loss, net of tax | (1.0) | 3.2 | 7.9 | 10.1 | |||||||||||||||||||
Balance as of December 31, 2021 | $ | (723.2) | $ | 22.9 | $ | (193.9) | $ | (894.2) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | (96.9) | 13.2 | 9.4 | (74.3) | |||||||||||||||||||
Amount reclassified from accumulated other comprehensive loss, net of tax | 4.3 | (1.1) | 4.9 | 8.1 | |||||||||||||||||||
Balance as of December 31, 2022 | $ | (815.8) | $ | 35.0 | $ | (179.6) | $ | (960.4) |
Foreign Currency Translation Adjustments | Derivative Instruments | Defined Benefit Pension and Other Postretirement Plans | Total | ||||||||||||
Balance as of December 31, 2017 | $ | (585.3 | ) | $ | (6.8 | ) | $ | (235.7 | ) | $ | (827.8 | ) | |||
Other comprehensive (loss) income before reclassifications | (146.8 | ) | 0.0 | 11.4 | (135.4 | ) | |||||||||
Amount reclassified from accumulated other comprehensive loss, net of tax | 15.7 | 1.5 | 4.9 | 22.1 | |||||||||||
Balance as of December 31, 2018 | $ | (716.4 | ) | $ | (5.3 | ) | $ | (219.4 | ) | $ | (941.1 | ) | |||
Other comprehensive income (loss) before reclassifications | 12.0 | 0.0 | (14.7 | ) | (2.7 | ) | |||||||||
Amount reclassified from accumulated other comprehensive loss, net of tax | 6.7 | 1.8 | 5.3 | 13.8 | |||||||||||
Balance as of December 31, 2019 | $ | (697.7 | ) | $ | (3.5 | ) | $ | (228.8 | ) | $ | (930.0 | ) |
Years ended December 31, | Affected Line Item in the Consolidated Statements of Operations | |||||||||||||
2019 | 2018 | 2017 | ||||||||||||
Foreign currency translation adjustments 1 | $ | 6.7 | $ | 15.7 | $ | 1.1 | Other expense, net | |||||||
Gains on available-for-sale securities | 0.0 | 0.0 | (0.7 | ) | Other expense, net | |||||||||
Losses on derivative instruments | 2.3 | 2.2 | 2.1 | Interest expense | ||||||||||
Amortization of defined benefit pension and postretirement plans items | 6.7 | 6.5 | 13.7 | Other expense, net | ||||||||||
Tax effect | (1.9 | ) | (2.3 | ) | (2.1 | ) | Provision for income taxes | |||||||
Total amount reclassified from accumulated other comprehensive loss, net of tax | $ | 13.8 | $ | 22.1 | $ | 14.1 |
Years ended December 31, | Affected Line Item in the Consolidated Statements of Operations | |||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||
Foreign currency translation adjustments 1 | $ | 4.3 | $ | (1.0) | $ | 20.0 | Other expense, net | |||||||||||||||||||
Net (gain) loss on derivative instruments | (1.4) | 4.2 | 2.4 | Other expense, net, Interest Expense | ||||||||||||||||||||||
Amortization of defined benefit pension and postretirement plans items | 6.3 | 10.0 | 7.3 | Other expense, net | ||||||||||||||||||||||
Tax effect | (1.1) | (3.1) | (2.2) | Provision for income taxes | ||||||||||||||||||||||
Total amount reclassified from accumulated other comprehensive loss, net of tax | $ | 8.1 | $ | 10.1 | $ | 27.5 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Severance and termination costs | $ | 22.0 | $ | 0.0 | $ | 0.0 | |||||
Lease restructuring costs | 11.9 | 0.0 | (0.4 | ) | |||||||
Total restructuring charges | $ | 33.9 | $ | 0.0 | $ | (0.4 | ) |
Years ended December 31, | |||||||||||||||||||||||
20221 | 20212 | 2020 | |||||||||||||||||||||
Severance and termination costs | $ | (0.1) | $ | 0.4 | $ | 140.4 | |||||||||||||||||
Lease restructuring costs | 85.4 | 6.3 | 256.0 | ||||||||||||||||||||
Other restructuring costs | 17.1 | 3.9 | 17.4 | ||||||||||||||||||||
Total restructuring charges | $ | 102.4 | $ | 10.6 | $ | 413.8 |
2022 Real Estate Actions | |||||||||||||||||||||||||||||
Restructuring Expense | Non-Cash Items | Cash Payments | Liability at December 31, 2022 | ||||||||||||||||||||||||||
Lease impairment costs | $ | 84.4 | $ | 84.4 | $ | 0.0 | $ | 0.0 | |||||||||||||||||||||
Other restructuring costs | 14.2 | 13.5 | 0.7 | 0.0 | |||||||||||||||||||||||||
Total | $ | 98.6 | $ | 97.9 | $ | 0.7 | $ | 0.0 |
2020 Plan | |||||||||||||||||||||||||||||||||||
Liability at December 31, 2021 | Restructuring Expense | Non-Cash Items | Cash Payments | Liability at December 31, 2022 | |||||||||||||||||||||||||||||||
Severance and termination costs | $ | 9.4 | $ | (0.1) | $ | 0.0 | $ | 7.0 | $ | 2.3 | |||||||||||||||||||||||||
Lease impairment costs | 0.0 | 1.0 | 1.0 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||
Other restructuring costs | 0.0 | 2.9 | 2.9 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||
Total | $ | 9.4 | $ | 3.8 | $ | 3.9 | $ | 7.0 | $ | 2.3 |
2020 Plan | |||||||||||||||||||||||||||||||||||
Liability at December 31, 2020 | Restructuring Expense | Non-Cash Items | Cash Payments | Liability at December 31, 2021 | |||||||||||||||||||||||||||||||
Severance and termination costs | $ | 74.6 | $ | 0.4 | $ | 0.3 | $ | 65.3 | $ | 9.4 | |||||||||||||||||||||||||
Lease impairment costs | 0.0 | 6.3 | 6.3 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||
Other restructuring costs | 0.0 | 3.9 | 3.2 | 0.7 | 0.0 | ||||||||||||||||||||||||||||||
Total | $ | 74.6 | $ | 10.6 | $ | 9.8 | $ | 66.0 | $ | 9.4 |
2020 Plan | |||||||||||||||||||||||||||||
Restructuring Expense | Non-Cash Items | Cash Payments | Liability at December 31, 2020 | ||||||||||||||||||||||||||
Severance and termination costs | $ | 140.4 | $ | 4.5 | $ | 61.3 | $ | 74.6 | |||||||||||||||||||||
Lease impairment costs | 256.0 | 256.0 | 0.0 | 0.0 | |||||||||||||||||||||||||
Other | 17.4 | 5.1 | 12.3 | 0.0 | |||||||||||||||||||||||||
Total | $ | 413.8 | $ | 265.6 | $ | 73.6 | $ | 74.6 |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | |||||||||||||||||||||||
Stock-settled awards | $ | 33.5 | $ | 24.7 | $ | 20.5 | Stock-settled awards | $ | 26.3 | $ | 36.7 | $ | 38.4 | |||||||||||||||
Cash-settled awards | 0.8 | 0.6 | 1.0 | Cash-settled awards | 0.3 | 1.0 | 1.0 | |||||||||||||||||||||
Performance-based awards | 46.7 | 57.5 | 61.5 | Performance-based awards | 23.7 | 33.4 | 28.6 | |||||||||||||||||||||
Stock Options | Stock Options | 0.3 | 0.3 | — | ||||||||||||||||||||||||
Employee stock purchase plan | 1.1 | 0.9 | 1.0 | Employee stock purchase plan | 3.1 | 2.1 | 1.4 | |||||||||||||||||||||
Other 1 | 0.6 | 0.9 | 0.5 | Other 1 | 2.0 | 11.3 | 1.7 | |||||||||||||||||||||
Stock-based compensation expense | $ | 82.7 | $ | 84.6 | $ | 84.5 | Stock-based compensation expense | $ | 55.7 | $ | 84.8 | $ | 71.1 | |||||||||||||||
Tax benefit | $ | 20.0 | $ | 20.4 | $ | 30.4 | Tax benefit | $ | 13.1 | $ | 18.0 | $ | 17.3 |
Options | Weighted- Average Exercise Price (per option) | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | ||||||||||
Stock options outstanding as of January 1, 2019 | 1.8 | $ | 10.66 | ||||||||||
Exercised | (0.6 | ) | $ | 7.38 | |||||||||
Stock options outstanding as of December 31, 2019 | 1.2 | $ | 12.26 | 2.7 | $ | 12.9 |
Options | Weighted- Average Exercise Price (per option) | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||||||||||||||||
Stock options outstanding as of January 1, 2022 | 0.3 | $ | 23.25 | |||||||||||||||||||||||
Granted | — | $ | — | |||||||||||||||||||||||
Exercised | 0.0 | $ | 12.23 | |||||||||||||||||||||||
Stock options outstanding as of December 31, 2022 | 0.3 | $ | 23.30 | 8.0 | $ | 2.5 |
Years ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Stock-Settled Awards: | ||||||||||||
Awards granted | 2.5 | 2.1 | 0.8 | |||||||||
Weighted-average grant-date fair value (per award) | $ | 22.78 | $ | 23.60 | $ | 24.18 | ||||||
Total fair value of vested awards distributed | $ | 15.2 | $ | 24.2 | $ | 22.6 | ||||||
Cash-Settled Awards: | ||||||||||||
Awards granted | 0.0 | 0.1 | 0.0 | |||||||||
Weighted-average grant-date fair value (per award) | $ | 22.83 | $ | 23.62 | $ | 23.33 | ||||||
Total fair value of vested awards distributed | $ | 0.9 | $ | 0.8 | $ | 0.9 | ||||||
Performance-Based Awards: | ||||||||||||
Awards granted | 2.1 | 2.9 | 4.8 | |||||||||
Weighted-average grant-date fair value (per award) | $ | 20.16 | $ | 21.13 | $ | 20.06 | ||||||
Total fair value of vested awards distributed | $ | 64.9 | $ | 87.2 | $ | 112.4 |
Years ended December 31, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Stock-Settled Awards: | ||||||||||||||||||||
Awards granted | 1.3 | 0.9 | 2.3 | |||||||||||||||||
Weighted-average grant-date fair value (per award) | $ | 36.36 | $ | 26.96 | $ | 20.70 | ||||||||||||||
Total fair value of vested awards distributed | $ | 59.7 | $ | 50.8 | $ | 17.3 | ||||||||||||||
Cash-Settled Awards: | ||||||||||||||||||||
Awards granted | 0.0 | — | 0.0 | |||||||||||||||||
Weighted-average grant-date fair value (per award) | $ | 36.53 | $ | — | $ | 21.02 | ||||||||||||||
Total fair value of vested awards distributed | $ | 0.8 | $ | 0.7 | $ | 0.3 | ||||||||||||||
Performance-Based Awards: | ||||||||||||||||||||
Awards granted | 1.6 | 0.5 | 2.4 | |||||||||||||||||
Weighted-average grant-date fair value (per award) | $ | 29.95 | $ | 21.98 | $ | 18.67 | ||||||||||||||
Total fair value of vested awards distributed | $ | 54.5 | $ | 39.3 | $ | 53.3 |
Stock-Settled Awards | Cash-Settled Awards | Performance-Based Awards | ||||||||||||||||||||||
Awards | Weighted- Average Grant-Date Fair Value (per award) | Awards | Weighted- Average Grant-Date Fair Value (per award) | Awards | Weighted- Average Grant-Date Fair Value (per award) | |||||||||||||||||||
Non-vested as of January 1, 2019 | 3.1 | $ | 23.51 | 0.1 | $ | 23.47 | 7.0 | $ | 21.10 | |||||||||||||||
Granted | 2.5 | 22.78 | 0.0 | 22.83 | 2.1 | 20.16 | ||||||||||||||||||
Vested | (0.7 | ) | 22.78 | 0.0 | 23.53 | (2.9 | ) | 19.93 | ||||||||||||||||
Forfeited | (0.2 | ) | 23.42 | 0.0 | 22.84 | (0.6 | ) | 21.01 | ||||||||||||||||
Non-vested as of December 31, 2019 | 4.7 | $ | 23.21 | 0.1 | $ | 23.20 | 5.6 | $ | 21.36 | |||||||||||||||
Total unrecognized compensation expense remaining | $ | 56.0 | $ | 1.2 | $ | 45.7 | ||||||||||||||||||
Weighted-average years expected to be recognized over | 1.6 | 1.5 | 1.7 |
Stock-Settled Awards | Cash-Settled Awards | Performance-Based Awards | ||||||||||||||||||||||||||||||||||||
Awards | Weighted- Average Grant-Date Fair Value (per award) | Awards | Weighted- Average Grant-Date Fair Value (per award) | Awards | Weighted- Average Grant-Date Fair Value (per award) | |||||||||||||||||||||||||||||||||
Non-vested as of January 1, 2022 | 4.1 | $ | 22.82 | 0.1 | $ | 21.78 | 3.3 | $ | 19.18 | |||||||||||||||||||||||||||||
Granted | 1.3 | 36.36 | 0.0 | 36.53 | 1.6 | 29.95 | ||||||||||||||||||||||||||||||||
Vested | (1.7) | 23.25 | (0.1) | 22.83 | (1.5) | 20.16 | ||||||||||||||||||||||||||||||||
Forfeited | (0.2) | 24.78 | 0.0 | 23.46 | (0.5) | 20.91 | ||||||||||||||||||||||||||||||||
Non-vested as of December 31, 2022 | 3.5 | $ | 27.52 | 0.0 | $ | 27.96 | 2.9 | $ | 24.31 | |||||||||||||||||||||||||||||
Total unrecognized compensation expense remaining | $ | 39.3 | $ | 0.6 | $ | 31.7 | ||||||||||||||||||||||||||||||||
Weighted-average years expected to be recognized over | 1.0 | 0.9 | 2.0 |
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. |
December 31, 2019 | Balance Sheet Classification | December 31, 2022 | Balance Sheet Classification | |||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 786.0 | $ | 0.0 | $ | 0.0 | $ | 786.0 | Cash and cash equivalents | |||||||||||||||||||||||||||||||||||||
Cash equivalents 1 | Cash equivalents 1 | $ | 1,688.1 | $ | 0.0 | $ | 0.0 | $ | 1,688.1 | Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Contingent acquisition obligations 1 | $ | 0.0 | $ | 0.0 | $ | 114.1 | $ | 114.1 | Accrued liabilities and Other non-current liabilities | |||||||||||||||||||||||||||||||||||||
Contingent acquisition obligations 2 | Contingent acquisition obligations 2 | $ | 0.0 | $ | 0.0 | $ | 21.6 | $ | 21.6 | Accrued liabilities and Other non-current liabilities | ||||||||||||||||||||||||||||||||||||
December 31, 2018 | Balance Sheet Classification | December 31, 2021 | Balance Sheet Classification | |||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 132.1 | $ | 0.0 | $ | 0.0 | $ | 132.1 | Cash and cash equivalents | |||||||||||||||||||||||||||||||||||||
Cash equivalents 1 | Cash equivalents 1 | $ | 2,391.8 | $ | 0.0 | $ | 0.0 | $ | 2,391.8 | Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Contingent acquisition obligations 1 | $ | 0.0 | $ | 0.0 | $ | 148.4 | $ | 148.4 | Accrued liabilities and Other non-current liabilities | |||||||||||||||||||||||||||||||||||||
Contingent acquisition obligations 2 | Contingent acquisition obligations 2 | $ | 0.0 | $ | 0.0 | $ | 33.5 | $ | 33.5 | Accrued liabilities and Other non-current liabilities |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
Total long-term debt 1 | $ | 0.0 | $ | 2,551.5 | $ | 0.8 | $ | 2,552.3 | $ | 0.0 | $ | 3,295.6 | $ | 41.8 | $ | 3,337.4 |
December 31, 2019 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Total long-term debt | $ | 0.0 | $ | 3,520.0 | $ | 45.5 | $ | 3,565.5 |
Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Benefit Obligation | |||||||||||||||||||||||||||||||||||
Projected benefit obligation as of January 1 | $ | 104.1 | $ | 116.8 | $ | 546.0 | $ | 605.9 | $ | 24.2 | $ | 25.8 | |||||||||||||||||||||||
Service cost | 0.0 | 0.0 | 4.6 | 4.5 | 0.0 | 0.0 | |||||||||||||||||||||||||||||
Interest cost | 2.8 | 2.9 | 8.9 | 8.0 | 0.6 | 0.7 | |||||||||||||||||||||||||||||
Benefits paid | (9.0) | (7.0) | (20.9) | (24.2) | (4.8) | (5.1) | |||||||||||||||||||||||||||||
Plan participant contributions | 0.0 | 0.0 | 0.0 | 0.0 | 1.9 | 1.8 | |||||||||||||||||||||||||||||
Actuarial (gains) losses | (23.0) | (5.0) | (153.3) | (41.9) | (4.0) | 1.0 | |||||||||||||||||||||||||||||
Settlements | 0.0 | (3.6) | 0.0 | (0.7) | 0.0 | 0.0 | |||||||||||||||||||||||||||||
Plan amendments | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||||||||||
Foreign currency effect | 0.0 | 0.0 | (51.1) | (5.6) | 0.0 | 0.0 | |||||||||||||||||||||||||||||
Projected benefit obligation as of December 31 | $ | 75.0 | $ | 104.1 | $ | 334.2 | $ | 546.0 | $ | 17.9 | $ | 24.2 | |||||||||||||||||||||||
Fair Value of Plan Assets | |||||||||||||||||||||||||||||||||||
Fair value of plan assets as of January 1 | $ | 98.1 | $ | 100.9 | $ | 484.8 | $ | 461.6 | $ | 0.0 | $ | 0.0 | |||||||||||||||||||||||
Actual return on plan assets | (18.6) | 5.8 | (134.8) | 32.6 | 0.0 | 0.0 | |||||||||||||||||||||||||||||
Employer contributions | 0.0 | 2.0 | 16.4 | 18.5 | 2.9 | 3.3 | |||||||||||||||||||||||||||||
Plan participant contributions | 0.0 | 0.0 | 0.0 | 0.0 | 1.9 | 1.8 | |||||||||||||||||||||||||||||
Benefits paid | (9.0) | (7.0) | (20.9) | (24.2) | (4.8) | (5.1) | |||||||||||||||||||||||||||||
Settlements | 0.0 | (3.6) | 0.0 | (0.7) | 0.0 | 0.0 | |||||||||||||||||||||||||||||
Foreign currency effect | 0.0 | 0.0 | (48.4) | (3.0) | 0.0 | 0.0 | |||||||||||||||||||||||||||||
Fair value of plan assets as of December 31 | $ | 70.5 | $ | 98.1 | $ | 297.1 | $ | 484.8 | $ | 0.0 | $ | 0.0 | |||||||||||||||||||||||
Funded status of the plans at December 31 | $ | (4.5) | $ | (6.0) | $ | (37.1) | $ | (61.2) | $ | (17.9) | $ | (24.2) |
Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Benefit Obligation | |||||||||||||||||||||||
Projected benefit obligation as of January 1 | $ | 115.4 | $ | 125.4 | $ | 496.0 | $ | 582.3 | $ | 27.7 | $ | 31.8 | |||||||||||
Service cost | 0.0 | 0.0 | 4.8 | 5.4 | 0.0 | 0.0 | |||||||||||||||||
Interest cost | 4.8 | 4.5 | 12.4 | 13.1 | 1.2 | 1.1 | |||||||||||||||||
Benefits paid | (9.2 | ) | (9.5 | ) | (27.8 | ) | (27.4 | ) | (5.4 | ) | (5.9 | ) | |||||||||||
Plan participant contributions | 0.0 | 0.0 | 0.0 | 0.1 | 2.0 | 1.8 | |||||||||||||||||
Actuarial losses (gains) | 5.9 | (5.0 | ) | 42.7 | (47.6 | ) | 1.7 | (1.1 | ) | ||||||||||||||
Settlements and curtailments | 0.0 | 0.0 | (0.7 | ) | (5.8 | ) | 0.0 | 0.0 | |||||||||||||||
Foreign currency effect | 0.0 | 0.0 | 13.8 | (26.4 | ) | 0.0 | 0.0 | ||||||||||||||||
Other | 0.0 | 0.0 | 0.0 | 2.3 | 0.0 | 0.0 | |||||||||||||||||
Projected benefit obligation as of December 31 | $ | 116.9 | $ | 115.4 | $ | 541.2 | $ | 496.0 | $ | 27.2 | $ | 27.7 | |||||||||||
Fair Value of Plan Assets | |||||||||||||||||||||||
Fair value of plan assets as of January 1 | $ | 89.8 | $ | 98.8 | $ | 363.9 | $ | 404.2 | $ | 0.0 | $ | 0.0 | |||||||||||
Actual return on plan assets | 16.1 | (8.1 | ) | 42.0 | (8.0 | ) | 0.0 | 0.0 | |||||||||||||||
Employer contributions | 2.4 | 8.6 | 18.0 | 19.1 | 3.4 | 4.1 | |||||||||||||||||
Plan participant contributions | 0.0 | 0.0 | 0.0 | 0.1 | 2.0 | 1.8 | |||||||||||||||||
Benefits paid | (9.2 | ) | (9.5 | ) | (27.8 | ) | (27.4 | ) | (5.4 | ) | (5.9 | ) | |||||||||||
Settlements | 0.0 | 0.0 | 0.0 | (4.6 | ) | 0.0 | 0.0 | ||||||||||||||||
Foreign currency effect | 0.0 | 0.0 | 13.4 | (21.1 | ) | 0.0 | 0.0 | ||||||||||||||||
Other | 0.0 | 0.0 | 0.0 | 1.6 | 0.0 | 0.0 | |||||||||||||||||
Fair value of plan assets as of December 31 | $ | 99.1 | $ | 89.8 | $ | 409.5 | $ | 363.9 | $ | 0.0 | $ | 0.0 | |||||||||||
Funded status of the plans at December 31 | $ | (17.8 | ) | $ | (25.6 | ) | $ | (131.7 | ) | $ | (132.1 | ) | $ | (27.2 | ) | $ | (27.7 | ) |
Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | |||||||||||||||||||||||||||||||||
December 31, | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Amounts recognized in Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||
Non-current asset | $ | 0.0 | $ | 0.0 | $ | 17.8 | $ | 10.4 | $ | 0.0 | $ | 0.0 | |||||||||||||||||||||||
Current liability | 0.0 | 0.0 | (5.1) | (6.9) | (2.0) | (2.3) | |||||||||||||||||||||||||||||
Non-current liability | (4.5) | (6.0) | (49.8) | (64.7) | (15.9) | (21.9) | |||||||||||||||||||||||||||||
Net liability recognized | $ | (4.5) | $ | (6.0) | $ | (37.1) | $ | (61.2) | $ | (17.9) | $ | (24.2) | |||||||||||||||||||||||
Accumulated benefit obligation | $ | 75.0 | $ | 104.1 | $ | 328.2 | $ | 542.2 | |||||||||||||||||||||||||||
Amounts recognized in Accumulated Other Comprehensive Loss, net | |||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 44.4 | $ | 45.5 | $ | 134.6 | $ | 153.8 | $ | 1.1 | $ | 5.5 | |||||||||||||||||||||||
Prior service cost (credit) | 0.1 | 0.0 | 0.6 | 0.8 | 0.0 | 0.0 | |||||||||||||||||||||||||||||
Total amount recognized | $ | 44.5 | $ | 45.5 | $ | 135.2 | $ | 154.6 | $ | 1.1 | $ | 5.5 |
Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | |||||||||||||||||||||
December 31, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Amounts recognized in Consolidated Balance Sheets | |||||||||||||||||||||||
Non-current asset | $ | 0.0 | $ | 0.0 | $ | 10.1 | $ | 8.6 | $ | 0.0 | $ | 0.0 | |||||||||||
Current liability | 0.0 | 0.0 | (5.8 | ) | (6.2 | ) | (2.7 | ) | (2.9 | ) | |||||||||||||
Non-current liability | (17.8 | ) | (25.6 | ) | (136.0 | ) | (134.5 | ) | (24.5 | ) | (24.8 | ) | |||||||||||
Net liability recognized | $ | (17.8 | ) | $ | (25.6 | ) | $ | (131.7 | ) | $ | (132.1 | ) | $ | (27.2 | ) | $ | (27.7 | ) | |||||
Accumulated benefit obligation | $ | 116.9 | $ | 115.4 | $ | 538.6 | $ | 493.2 | |||||||||||||||
Amounts recognized in Accumulated Other Comprehensive Loss, net | |||||||||||||||||||||||
Net actuarial loss | $ | 54.2 | $ | 60.4 | $ | 183.2 | $ | 165.6 | $ | 4.7 | $ | 3.1 | |||||||||||
Prior service cost (credit) | 0.0 | 0.0 | 1.1 | 1.2 | (0.1 | ) | (0.3 | ) | |||||||||||||||
Total amount recognized | $ | 54.2 | $ | 60.4 | $ | 184.3 | $ | 166.8 | $ | 4.6 | $ | 2.8 |
Domestic Pension Plan | Foreign Pension Plans | Domestic Pension Plan | Foreign Pension Plans | |||||||||||||||||||||||||||||||||||
December 31, | 2019 | 2018 | 2019 | 2018 | December 31, | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets | Pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets | |||||||||||||||||||||||||||||||||||||
Aggregate projected benefit obligation | $ | 116.9 | $ | 115.4 | $ | 534.6 | $ | 491.2 | Aggregate projected benefit obligation | $ | 75.0 | $ | 104.1 | $ | 67.4 | $ | 542.1 | |||||||||||||||||||||
Aggregate accumulated benefit obligation | 116.9 | 115.4 | 533.5 | 489.9 | Aggregate accumulated benefit obligation | 75.0 | 104.1 | 62.4 | 539.7 | |||||||||||||||||||||||||||||
Aggregate fair value of plan assets | 99.1 | 89.8 | 392.7 | 350.5 | Aggregate fair value of plan assets | 70.5 | 98.1 | 12.5 | 470.6 |
Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years ended December 31, | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | Years ended December 31, | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 4.8 | $ | 5.4 | $ | 4.9 | $ | 0.0 | $ | 0.0 | $ | 0.0 | Service cost | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 4.6 | $ | 4.5 | $ | 4.9 | $ | 0.0 | $ | 0.0 | $ | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 4.8 | 4.5 | 5.1 | 12.4 | 13.1 | 13.5 | 1.2 | 1.1 | 1.3 | Interest cost | 2.8 | 2.9 | 3.7 | 8.9 | 8.0 | 9.4 | 0.6 | 0.7 | 0.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (5.9 | ) | (6.6 | ) | (6.2 | ) | (17.4 | ) | (18.8 | ) | (17.7 | ) | 0.0 | 0.0 | 0.0 | Expected return on plan assets | (4.7) | (5.6) | (5.7) | (19.8) | (20.8) | (18.8) | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement and curtailment (gains) losses | 0.0 | 0.0 | 0.0 | 0.0 | (1.0 | ) | 6.8 | 0.0 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment and settlement | Curtailment and settlement | 0.0 | 1.5 | 0.0 | 0.0 | (0.9) | (0.1) | 0.0 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of: | Amortization of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior service cost (credit) | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 | 0.1 | (0.2 | ) | (0.2 | ) | (0.2 | ) | Prior service cost (credit) | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 | 0.1 | 0.0 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial losses | 1.9 | 1.6 | 1.5 | 4.8 | 5.9 | 5.5 | 0.1 | 0.1 | 0.0 | Net actuarial losses | 1.4 | 1.7 | 1.7 | 4.4 | 6.7 | 5.4 | 0.4 | 0.9 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic cost | $ | 0.8 | $ | (0.5 | ) | $ | 0.4 | $ | 4.7 | $ | 4.7 | $ | 13.1 | $ | 1.1 | $ | 1.0 | $ | 1.1 | Net periodic cost | $ | (0.5) | $ | 0.5 | $ | (0.3) | $ | (1.8) | $ | (2.4) | $ | 0.9 | $ | 1.0 | $ | 1.6 | $ | 1.0 |
Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | ||||||||||||||||||||||||
Years ended December 31, | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Net periodic cost | ||||||||||||||||||||||||||
Discount rate | 4.35 | % | 3.70 | % | 4.20 | % | 2.61 | % | 2.36 | % | 2.52 | % | 4.30 | % | 3.65 | % | 4.05 | % | ||||||||
Rate of compensation increase | N/A | N/A | N/A | 2.58 | % | 2.37 | % | 2.36 | % | N/A | N/A | N/A | ||||||||||||||
Expected return on plan assets | 7.00 | % | 7.00 | % | 7.00 | % | 4.76 | % | 4.70 | % | 4.66 | % | N/A | N/A | N/A | |||||||||||
Interest crediting rates | 5.10 | % | 5.10 | % | 5.10 | % | 1.44 | % | 1.31 | % | 1.29 | % | N/A | N/A | N/A | |||||||||||
Benefit obligation | ||||||||||||||||||||||||||
Discount rate | 3.35 | % | 4.35 | % | 3.70 | % | 1.84 | % | 2.61 | % | 2.36 | % | 3.25 | % | 4.30 | % | 3.65 | % | ||||||||
Rate of compensation increase | N/A | N/A | N/A | 2.51 | % | 2.58 | % | 2.37 | % | N/A | N/A | N/A | ||||||||||||||
Interest crediting rates | 5.10 | % | 5.10 | % | 5.10 | % | 1.37 | % | 1.44 | % | 1.31 | % | N/A | N/A | N/A | |||||||||||
Health care cost trend rate assumed for next year | ||||||||||||||||||||||||||
Initial rate (weighted-average) | 7.00 | % | 6.25 | % | 6.50 | % | ||||||||||||||||||||
Year ultimate rate is reached | 2028 | 2024 | 2024 | |||||||||||||||||||||||
Ultimate rate | 5.00 | % | 5.00 | % | 5.00 | % |
Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||
Years ended December 31, | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Net periodic cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 2.95 | % | 2.60 | % | 3.35 | % | 1.86 | % | 1.35 | % | 1.84 | % | 2.90 | % | 2.50 | % | 3.25 | % | |||||||||||||||||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | 2.65 | % | 2.47 | % | 2.51 | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | 5.00 | % | 5.75 | % | 6.00 | % | 4.47 | % | 4.47 | % | 4.70 | % | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Interest crediting rates | 5.10 | % | 5.10 | % | 5.10 | % | 1.50 | % | 1.50 | % | 1.37 | % | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Benefit obligation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 5.65 | % | 2.95 | % | 2.60 | % | 4.62 | % | 1.86 | % | 1.35 | % | 5.65 | % | 2.90 | % | 2.50 | % | |||||||||||||||||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | 2.80 | % | 2.65 | % | 2.47 | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Interest crediting rates | 5.10 | % | 5.10 | % | 5.10 | % | 1.50 | % | 1.50 | % | 1.50 | % | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Healthcare cost trend rate assumed for next year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial rate (weighted-average) | 6.75 | % | 6.50 | % | 6.75 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Year ultimate rate is reached | 2030 | 2028 | 2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ultimate rate | 5.00 | % | 5.00 | % | 5.00 | % |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
Plan assets subject to fair value hierarchy | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Registered investment companies | $ | 18.0 | $ | 0.0 | $ | 0.0 | $ | 18.0 | $ | 13.0 | $ | 0.0 | $ | 0.0 | $ | 13.0 | |||||||||||||||
Limited partnerships | 0.0 | 0.0 | 25.6 | 25.6 | 0.0 | 0.0 | 25.6 | 25.6 | |||||||||||||||||||||||
Fixed income securities | 19.6 | 0.0 | 0.0 | 19.6 | 23.1 | 0.0 | 0.0 | 23.1 | |||||||||||||||||||||||
Insurance contracts | 0.0 | 5.5 | 0.0 | 5.5 | 0.0 | 5.8 | 0.0 | 5.8 | |||||||||||||||||||||||
Other | 27.8 | 0.0 | 0.0 | 27.8 | 20.0 | 0.0 | 0.0 | 20.0 | |||||||||||||||||||||||
Total plan assets, subject to leveling | $ | 65.4 | $ | 5.5 | $ | 25.6 | $ | 96.5 | $ | 56.1 | $ | 5.8 | $ | 25.6 | $ | 87.5 | |||||||||||||||
Plan assets measured at net asset value | |||||||||||||||||||||||||||||||
Other investments measured at net asset value 1 | 412.1 | 366.2 | |||||||||||||||||||||||||||||
Total plan assets | $ | 508.6 | $ | 453.7 |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Plan assets subject to fair value hierarchy | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
Registered investment companies | $ | 10.6 | $ | 0.0 | $ | 0.0 | $ | 10.6 | $ | 14.1 | $ | 0.0 | $ | 0.0 | $ | 14.1 | |||||||||||||||||||||||||||||||
Limited partnerships | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 24.0 | 24.0 | |||||||||||||||||||||||||||||||||||||||
Fixed income securities | 12.5 | 0.0 | 0.0 | 12.5 | 29.0 | 0.0 | 0.0 | 29.0 | |||||||||||||||||||||||||||||||||||||||
Insurance contracts | 0.0 | 1.6 | 0.0 | 1.6 | 0.0 | 2.0 | 0.0 | 2.0 | |||||||||||||||||||||||||||||||||||||||
Other | 11.9 | 0.0 | 0.0 | 11.9 | 30.7 | 0.0 | 0.0 | 30.7 | |||||||||||||||||||||||||||||||||||||||
Total plan assets, subject to leveling | $ | 35.0 | $ | 1.6 | $ | 0.0 | $ | 36.6 | $ | 73.8 | $ | 2.0 | $ | 24.0 | $ | 99.8 | |||||||||||||||||||||||||||||||
Plan assets measured at net asset value | |||||||||||||||||||||||||||||||||||||||||||||||
Other investments measured at net asset value 1 | 331.0 | 483.1 | |||||||||||||||||||||||||||||||||||||||||||||
Total plan assets | $ | 367.6 | $ | 582.9 |
Years ended December 31, | |||||||
Plan assets subject to fair value hierarchy, Level 3 | 2019 | 2018 | |||||
Balance at beginning of period | $ | 25.6 | $ | 29.5 | |||
Actual return on plan assets | 0.0 | (3.9 | ) | ||||
Balance at end of period | $ | 25.6 | $ | 25.6 |
Years ended December 31, | |||||||||||
Plan assets subject to fair value hierarchy, Level 3 | 2022 | 2021 | |||||||||
Balance at beginning of period | $ | 24.0 | $ | 25.9 | |||||||
Actual return on plan assets | (1.7) | (1.9) | |||||||||
Net purchases, sales and settlements | (22.3) | 0.0 | |||||||||
Balance at end of period | $ | 0.0 | $ | 24.0 |
December 31, | December 31, | ||||||||||||||||||||||||
Asset Class | 2020 Target Allocation | 2019 | 2018 | Asset Class | 2023 Target Allocation | 2022 | 2021 | ||||||||||||||||||
Alternative investments 1 | 25 | % | 25 | % | 26 | % | Alternative investments 1 | 18 | % | 18 | % | 28 | % | ||||||||||||
Equity securities | 25 | % | 25 | % | 22 | % | Equity securities | 14 | % | 14 | % | 22 | % | ||||||||||||
Fixed income securities | 20 | % | 19 | % | 21 | % | Fixed income securities | 26 | % | 26 | % | 14 | % | ||||||||||||
Liability driven investments 2 | 14 | % | 14 | % | 16 | % | Liability driven investments 2 | 29 | % | 28 | % | 21 | % | ||||||||||||
Real estate | 9 | % | 9 | % | 6 | % | Real estate | 11 | % | 11 | % | 8 | % | ||||||||||||
Other | 7 | % | 8 | % | 9 | % | Other | 2 | % | 3 | % | 7 | % | ||||||||||||
Total | 100 | % | 100 | % | 100 | % | Total | 100 | % | 100 | % | 100 | % |
Years | Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | ||||||||
2020 | $ | 14.6 | $ | 21.7 | $ | 2.7 | |||||
2021 | 8.0 | 19.8 | 2.6 | ||||||||
2022 | 8.1 | 21.0 | 2.4 | ||||||||
2023 | 7.6 | 21.9 | 2.2 | ||||||||
2024 | 7.5 | 22.7 | 2.1 | ||||||||
2025 - 2029 | 34.6 | 116.7 | 8.8 |
Years | Domestic Pension Plan | Foreign Pension Plans | Domestic Postretirement Benefit Plan | ||||||||||||||
2023 | $ | 8.0 | $ | 18.9 | $ | 1.8 | |||||||||||
2024 | 7.5 | 18.3 | 1.7 | ||||||||||||||
2025 | 7.3 | 19.0 | 1.9 | ||||||||||||||
2026 | 7.0 | 19.2 | 1.8 | ||||||||||||||
2027 | 6.9 | 18.9 | 1.7 | ||||||||||||||
2028 - 2032 | 29.3 | 99.5 | 6.9 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Total Revenue: | |||||||||||
IAN | $ | 8,026.4 | $ | 7,556.1 | $ | 7,009.6 | |||||
CMG | 2,194.9 | 2,158.3 | 2,038.0 | ||||||||
Total | $ | 10,221.3 | $ | 9,714.4 | $ | 9,047.6 | |||||
Net revenue: | |||||||||||
IAN | $ | 7,348.2 | $ | 6,767.5 | $ | 6,266.7 | |||||
CMG | 1,276.9 | 1,264.1 | 1,206.8 | ||||||||
Total | $ | 8,625.1 | $ | 8,031.6 | $ | 7,473.5 | |||||
Segment EBITA: | |||||||||||
IAN | $ | 1,110.4 | $ | 1,042.1 | $ | 891.7 | |||||
CMG | 163.4 | 180.3 | 194.4 | ||||||||
Corporate and other | (101.8 | ) | (176.0 | ) | (126.6 | ) | |||||
Total | $ | 1,172.0 | $ | 1,046.4 | $ | 959.5 | |||||
Amortization of acquired intangibles: | |||||||||||
IAN | $ | 81.6 | $ | 32.3 | $ | 16.6 | |||||
CMG | 4.4 | 5.3 | 4.5 | ||||||||
Corporate and other | 0.0 | 0.0 | 0.0 | ||||||||
Total | $ | 86.0 | $ | 37.6 | $ | 21.1 | |||||
Depreciation and amortization 1: | |||||||||||
IAN | $ | 166.0 | $ | 136.8 | $ | 108.9 | |||||
CMG | 19.2 | 19.0 | 19.0 | ||||||||
Corporate and other | 7.3 | 9.5 | 8.1 | ||||||||
Total | $ | 192.5 | $ | 165.3 | $ | 136.0 | |||||
Capital expenditures: | |||||||||||
IAN | $ | 161.8 | $ | 143.9 | $ | 112.0 | |||||
CMG | 13.3 | 13.0 | 17.7 | ||||||||
Corporate and other | 23.4 | 20.2 | 26.2 | ||||||||
Total | $ | 198.5 | $ | 177.1 | $ | 155.9 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Total Revenue: | |||||||||||||||||
MD&E | $ | 4,196.7 | $ | 4,061.7 | $ | 3,520.4 | |||||||||||
IA&C | 4,325.5 | 4,176.7 | 3,724.6 | ||||||||||||||
SC&E | 2,405.6 | 2,002.3 | 1,816.0 | ||||||||||||||
Total | $ | 10,927.8 | $ | 10,240.7 | $ | 9,061.0 | |||||||||||
Revenue before billable expenses: | |||||||||||||||||
MD&E | $ | 4,111.5 | $ | 3,973.6 | $ | 3,451.2 | |||||||||||
IA&C | 3,951.7 | 3,823.8 | 3,427.5 | ||||||||||||||
SC&E | 1,386.2 | 1,310.5 | 1,185.8 | ||||||||||||||
Total | $ | 9,449.4 | $ | 9,107.9 | $ | 8,064.5 | |||||||||||
Segment EBITA 1: | |||||||||||||||||
MD&E | $ | 701.8 | $ | 818.0 | $ | 385.7 | |||||||||||
IA&C | 624.1 | 645.2 | 328.5 | ||||||||||||||
SC&E | 234.5 | 188.6 | 41.4 | ||||||||||||||
Corporate and other | (94.5) | (129.4) | (81.3) | ||||||||||||||
Total | $ | 1,465.9 | $ | 1,522.4 | $ | 674.3 | |||||||||||
Amortization of acquired intangibles: | |||||||||||||||||
MD&E | $ | 72.8 | $ | 71.9 | $ | 71.7 | |||||||||||
IA&C | 7.2 | 10.4 | 10.4 | ||||||||||||||
SC&E | 4.7 | 3.9 | 3.8 | ||||||||||||||
Corporate and other | 0.0 | 0.0 | 0.0 | ||||||||||||||
Total | $ | 84.7 | $ | 86.2 | $ | 85.9 | |||||||||||
Depreciation and amortization 2: | |||||||||||||||||
MD&E | $ | 106.5 | $ | 106.8 | $ | 103.9 | |||||||||||
IA&C | 59.3 | 63.9 | 73.4 | ||||||||||||||
SC&E | 16.9 | 17.7 | 22.0 | ||||||||||||||
Corporate and other | 6.6 | 9.2 | 5.4 | ||||||||||||||
Total | $ | 189.3 | $ | 197.6 | $ | 204.7 | |||||||||||
Capital expenditures: | |||||||||||||||||
MD&E | $ | 97.3 | $ | 99.0 | $ | 87.0 | |||||||||||
IA&C | 43.9 | 58.2 | 44.8 | ||||||||||||||
SC&E | 7.3 | 8.1 | 8.7 | ||||||||||||||
Corporate and other | 29.6 | 30.0 | 27.0 | ||||||||||||||
Total | $ | 178.1 | $ | 195.3 | $ | 167.5 | |||||||||||
December 31, | |||||||
2019 | 2018 | ||||||
Total assets: | |||||||
IAN | $ | 15,170.3 | $ | 13,867.9 | |||
CMG | 1,710.4 | 1,516.7 | |||||
Corporate and other | 871.2 | 235.7 | |||||
Total | $ | 17,751.9 | $ | 15,620.3 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Total assets: | |||||||||||
MD&E | $ | 9,592.4 | $ | 9,580.6 | |||||||
IA&C | 5,475.3 | 6,001.1 | |||||||||
SC&E | 1,629.9 | 1,594.0 | |||||||||
Corporate and other | 2,147.4 | 2,733.5 | |||||||||
Total | $ | 18,845.0 | $ | 19,909.2 |
Years ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
IAN EBITA | $ | 1,110.4 | $ | 1,042.1 | $ | 891.7 | |||||
CMG EBITA | 163.4 | 180.3 | 194.4 | ||||||||
Corporate and other EBITA | (101.8 | ) | (176.0 | ) | (126.6 | ) | |||||
Less: consolidated amortization of acquired intangibles | 86.0 | 37.6 | 21.1 | ||||||||
Operating income | 1,086.0 | 1,008.8 | 938.4 | ||||||||
Total (expenses) and other income | (207.7 | ) | (170.8 | ) | (97.6 | ) | |||||
Income before income taxes | $ | 878.3 | $ | 838.0 | $ | 840.8 |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
MD&E EBITA | $ | 701.8 | $ | 818.0 | $ | 385.7 | |||||||||||
IA&C EBITA | 624.1 | 645.2 | 328.5 | ||||||||||||||
SC&E EBITA | 234.5 | 188.6 | 41.4 | ||||||||||||||
Corporate and other EBITA | (94.5) | (129.4) | (81.3) | ||||||||||||||
Less: consolidated amortization of acquired intangibles | 84.7 | 86.2 | 85.9 | ||||||||||||||
Operating income | 1,381.2 | 1,436.2 | 588.4 | ||||||||||||||
Total (expenses) and other income | (112.3) | (214.1) | (227.1) | ||||||||||||||
Income before income taxes | $ | 1,268.9 | $ | 1,222.1 | $ | 361.3 |
Long-Lived Assets | ||||||||
December 31, | ||||||||
2019 | 2018 | |||||||
Domestic | $ | 2,080.4 | $ | 892.9 | ||||
International: | ||||||||
United Kingdom | 167.6 | 57.9 | ||||||
Continental Europe | 149.7 | 57.9 | ||||||
Asia Pacific | 240.9 | 121.7 | ||||||
Latin America | 74.8 | 43.6 | ||||||
Other | 130.4 | 45.7 | ||||||
Total International | 763.4 | 326.8 | ||||||
Total Consolidated | $ | 2,843.8 | $ | 1,219.7 |
Long-Lived Assets | ||||||||||||||
December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Domestic | $ | 1,709.9 | $ | 1,879.8 | ||||||||||
International: | ||||||||||||||
United Kingdom | 254.8 | 311.3 | ||||||||||||
Continental Europe | 87.6 | 102.6 | ||||||||||||
Asia Pacific | 176.5 | 177.7 | ||||||||||||
Latin America | 61.6 | 50.7 | ||||||||||||
Other | 88.9 | 97.8 | ||||||||||||
Total International | 669.4 | 740.1 | ||||||||||||
Total Consolidated | $ | 2,379.3 | $ | 2,619.9 |
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | ||||||||||||||||||||||
Deferred acquisition payments | $ | 45.7 | $ | 30.4 | $ | 7.4 | $ | 4.4 | $ | 2.4 | $ | 0.0 | $ | 90.3 | ||||||||||||||
Redeemable noncontrolling interests and call options with affiliates 1 | 26.2 | 37.9 | 32.4 | 6.2 | 2.5 | 0.2 | 105.4 | |||||||||||||||||||||
Total contingent acquisition payments | $ | 71.9 | $ | 68.3 | $ | 39.8 | $ | 10.6 | $ | 4.9 | $ | 0.2 | $ | 195.7 |
2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | ||||||||||||||||||||||||||||||||||||||
Deferred acquisition payments | $ | 18.7 | $ | 3.1 | $ | 0.0 | $ | 0.1 | $ | 0.0 | $ | 0.0 | $ | 21.9 | ||||||||||||||||||||||||||||||
Redeemable non-controlling interests and call options with affiliates 1 | 9.5 | 1.2 | 16.0 | 0.0 | 24.3 | 0.0 | 51.0 | |||||||||||||||||||||||||||||||||||||
Total contingent acquisition payments | $ | 28.2 | $ | 4.3 | $ | 16.0 | $ | 0.1 | $ | 24.3 | $ | 0.0 | $ | 72.9 |
1We have entered into certain acquisitions that contain both redeemable non-controlling interests and call options with similar terms and conditions. The estimated amounts listed would be paid in the event |
Three Months Ended March 31, | Three Months Ended June 30, | Three Months Ended September 30, | Three Months Ended December 31, | ||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||
Net revenue | $ | 2,004.8 | $ | 1,774.0 | $ | 2,125.9 | $ | 1,948.2 | $ | 2,061.4 | $ | 1,895.7 | $ | 2,433.0 | $ | 2,413.7 | |||||||||||||||
Billable expenses | 356.4 | 395.1 | 394.3 | 443.6 | 376.7 | 401.8 | 468.8 | 442.3 | |||||||||||||||||||||||
Total Revenue | 2,361.2 | 2,169.1 | 2,520.2 | 2,391.8 | 2,438.1 | 2,297.5 | 2,901.8 | 2,856.0 | |||||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||||||||
Salaries and related expenses | 1,421.1 | 1,330.3 | 1,381.2 | 1,292.9 | 1,334.4 | 1,251.4 | 1,432.1 | 1,423.7 | |||||||||||||||||||||||
Office and other direct expenses | 389.2 | 323.8 | 387.3 | 333.3 | 367.9 | 317.0 | 419.7 | 381.0 | |||||||||||||||||||||||
Billable expenses | 356.4 | 395.1 | 394.3 | 443.6 | 376.7 | 401.8 | 468.8 | 442.3 | |||||||||||||||||||||||
Cost of services | 2,166.7 | 2,049.2 | 2,162.8 | 2,069.8 | 2,079.0 | 1,970.2 | 2,320.6 | 2,247.0 | |||||||||||||||||||||||
Selling, general and administrative expenses 1 | 41.4 | 35.1 | 18.1 | 28.8 | 9.8 | 21.6 | 24.5 | 81.0 | |||||||||||||||||||||||
Depreciation and amortization | 71.1 | 46.0 | 73.0 | 44.0 | 69.0 | 44.0 | 65.4 | 68.9 | |||||||||||||||||||||||
Restructuring Charges 2 | 31.8 | 0.0 | 2.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||||
Total operating expenses | 2,311.0 | 2,130.3 | 2,256.0 | 2,142.6 | 2,157.8 | 2,035.8 | 2,410.5 | 2,396.9 | |||||||||||||||||||||||
Operating income | 50.2 | 38.8 | 264.2 | 249.2 | 280.3 | 261.7 | 491.3 | 459.1 | |||||||||||||||||||||||
Other (expense) income, net 3 | (6.9 | ) | (24.4 | ) | (3.8 | ) | (16.3 | ) | (7.4 | ) | (15.3 | ) | (24.8 | ) | (13.6 | ) | |||||||||||||||
Total (expenses) and other income | (48.9 | ) | (40.3 | ) | (47.7 | ) | (37.7 | ) | (47.6 | ) | (37.6 | ) | (63.5 | ) | (55.2 | ) | |||||||||||||||
Provision for income taxes 4 | 10.5 | 12.7 | 43.6 | 63.6 | 64.6 | 60.7 | 86.1 | 62.2 | |||||||||||||||||||||||
Net (loss) income | (9.5 | ) | (16.1 | ) | 172.8 | 147.8 | 168.4 | 163.5 | 342.2 | 342.5 | |||||||||||||||||||||
Net (loss) income available to IPG common stockholders | $ | (8.0 | ) | $ | (14.1 | ) | $ | 169.5 | $ | 145.8 | $ | 165.6 | $ | 161.0 | $ | 328.9 | $ | 326.2 | |||||||||||||
(Loss) earnings per share available to IPG common stockholders: | |||||||||||||||||||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.04 | ) | $ | 0.44 | $ | 0.38 | $ | 0.43 | $ | 0.42 | $ | 0.85 | $ | 0.85 | |||||||||||||
Diluted | $ | (0.02 | ) | $ | (0.04 | ) | $ | 0.43 | $ | 0.37 | $ | 0.42 | $ | 0.41 | $ | 0.84 | $ | 0.84 | |||||||||||||
Dividends declared per common share | $ | 0.235 | $ | 0.210 | $ | 0.235 | $ | 0.210 | $ | 0.235 | $ | 0.210 | $ | 0.235 | $ | 0.210 |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Plan Category | Number of Shares of Common Stock to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) 1, 2, 3, 4 | Weighted-Average Exercise Price of Outstanding Stock Options (b) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) 5 | ||||||||||||||
Equity Compensation Plans Approved by Security Holders | 6,690,813 | $ | 23.30 | 31,459,145 |
Plan Category | Number of Shares of Common Stock to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) 1, 2, 3, 4 | Weighted-Average Exercise Price of Outstanding Stock Options (b) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) 5 | ||||||
Equity Compensation Plans Approved by Security Holders | 11,542,945 | $ | 12.26 | 36,045,173 |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Item 15. | Exhibits, Financial Statement Schedules |
Item 16. | Form 10-K Summary |
Exhibit No. | Description | |||||||
Restated Certificate of Incorporation of the Registrant dated as of October 24, 2013, is incorporated by reference to Exhibit 3(i)(2) to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. | ||||||||
Amended and Restated By-Laws of the Registrant dated as of October 26, 2016, is incorporated by reference to Exhibit 3(ii) to the Registrant’s Current Report on Form 8-K filed with the SEC on October 27, 2016. | ||||||||
Senior Debt Indenture dated as of March 2, 2012 (the "2012 Indenture"), between the Registrant and U.S. Bank National Association, as Trustee, is incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K filed with the SEC on March 2, 2012. | ||||||||
Fourth Supplemental Indenture, dated as of April 3, 2014, to the 2012 Indenture, with respect to the | ||||||||
Seventh Supplemental Indenture, dated as of September 21, 2018, to the 2012 Indenture, with respect to the 4.650% Senior Notes due 2028 is incorporated by reference to Exhibit 4.4 to the Registrant’s Current Report on Form 8-K filed with the SEC on September 21, 2018. | ||||||||
Eighth Supplemental Indenture, dated as of September 21, 2018, to the 2012 Indenture, with respect to the 5.400% Senior Notes due 2048 is incorporated by reference to Exhibit 4.5 to the Registrant’s Current Report on Form 8-K filed with the SEC on September 21, 2018. | ||||||||
Ninth Supplemental Indenture, dated as of March 30, 2020, to the 2012 Indenture, with respect to the 4.750% Senior Notes due 2030 is incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on March 30, 2020. | ||||||||
Tenth Supplemental Indenture, dated as of February 25, 2021, to the 2012 Indenture, with respect to the 2.400% Senior Notes due 2031 is incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on February 25, 2021. | ||||||||
Eleventh Supplemental Indenture, dated as of February 25, 2021, to the 2012 Indenture, with respect to the 3.375% Senior Notes due 2041 is incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K filed with the SEC on February 25, 2021. | ||||||||
Description of Registered Securities | ||||||||
Amended and Restated Credit Agreement, dated as of November 1, | ||||||||
(i) | ||||||||
Employment Agreement, made as of January 1, 2021, entered into on July | ||||||||
Executive Change of Control Agreement, effective as of May 27, 2010, by and between the Registrant and | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and Philippe Krakowsky, dated October 26, 2022 is incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2022.* | ||||||||
(iii) Ellen Johnson | ||||||||
Employment Agreement between the Registrant and Ellen Johnson made as of January 1, 2020, entered into onJuly 29, 2020 is incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020.* | ||||||||
Executive Change of Control Agreement between the Registrant and Ellen Johnson dated as of May 27, 2010, is incorporated by reference to Exhibit 10(iii)(A)(4) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019.* | ||||||||
Extension of Existing Executive Change of Control Agreement between the Registrant and Ellen Johnson dated August 29, 2013, is incorporated by reference to Exhibit 10(iii)(A)(5) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019.* | ||||||||
Extension of Existing Executive Change of Control Agreement between the Registrant and Ellen Johnson dated October 26, 2016, is incorporated by reference to Exhibit 10(iii)(A)(6) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019.* | ||||||||
Extension of Existing Executive Change of Control Agreement between the Registrant and Ellen Johnson dated July 24, 2019 is incorporated by reference to Exhibit 10(iii)(a)(6) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.* | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and Ellen Johnson, dated October 26, 2022 is incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2022.* | ||||||||
(iv) Andrew Bonzani | ||||||||
Employment Agreement, effective as of December 22, 2011, by and between the Registrant and Andrew Bonzani, is incorporated by reference to Exhibit(iii)(A)(8) to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2012.* | ||||||||
Executive Change of Control Agreement, effective as of December 22, 2011, by and between the Registrant and Andrew Bonzani, is incorporated by reference to Exhibit(iii)(A)(9) to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2012.* | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and Andrew Bonzani, dated August 29, 2013 is incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed with the SEC on August 30, 2013.* | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and Andrew Bonzani, dated October 26, 2016 is incorporated by reference to Exhibit 10(iii)(a)(3) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2016.* | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and Andrew Bonzani, dated July 24, 2019 is incorporated by reference to Exhibit 10(iii)(a)(3) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.* | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and Andrew Bonzani, dated October 26, 2022 is incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2022.* | ||||||||
(v) Christopher Carroll | ||||||||
Employment Agreement, made as of April 1, 2006, by and between the Registrant and Christopher Carroll, is incorporated by reference to Exhibit 10(iii)(A)(8) to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2011.* | ||||||||
Amendment, dated as of October 29, 2007, to an Employment Agreement, made as of April 1, 2006, between the Registrant and Christopher Carroll, is incorporated by reference to Exhibit 10(iii)(A)(9) to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2011.* | ||||||||
Executive Change of Control Agreement, effective as of May 27, 2010, by and between the Registrant and Christopher Carroll, is incorporated by reference to Exhibit 10(iii)(A)(10) to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2011.* | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and Christopher Carroll, dated August 29, 2013 is incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K filed with the SEC on August 30, 2013.* | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and Christopher Carroll, dated October 26, 2016 is incorporated by reference to Exhibit 10(iii)(a)(4) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2016.* | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and Christopher Carroll, dated July 24, 2019 is incorporated by reference to Exhibit 10(iii)(a)(4) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.* | ||||||||
Extension of Existing Executive Change of Control Agreement by and between the Registrant and | ||||||||
Compensation Plans and Arrangements: | ||||||||||
The Interpublic Group 2014 Performance Incentive Plan (the “2014 PIP”) is incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on May 28, 2014.* |
2014 PIP Performance Share Award Agreement (updated 2018) is incorporated by reference to Exhibit 10(iii)(A)(48) to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2017.* | ||||||||
2014 PIP Performance Cash Award Agreement (updated 2018) is incorporated by reference to Exhibit 10(iii)(A)(50) to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2017.* | ||||||||
The Interpublic Group 2019 Performance Incentive Plan (the “2019 PIP”) | ||||||||
2019 PIP Restricted Stock Award | ||||||||
2019 PIP Restricted Stock Unit Award Agreement is incorporated by reference to Exhibit 10(iii)(A)(64) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2019.* | ||||||||
2019 PIP Restricted Stock Unit Award Agreement.* (updated 2021) is incorporated by reference to Exhibit 10(iii)(A)(50) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2020*. | ||||||||
2019 PIP Restricted Stock Unit Award Agreement (version2) | ||||||||
2019 PIP Performance Share Award | ||||||||
2019 PIP Performance Share Award Agreement (updated 2021) is incorporated by reference to Exhibit 10(iii)(A)(53) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.* | ||||||||
2019 PIP Performance Share Award Agreement (version 2) | ||||||||
2019 PIP Performance Cash Award | ||||||||
2019 PIP Performance Cash Award Agreement (updated 2021) is incorporated by reference to Exhibit 10(iii)(A)(56) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2020*. | ||||||||
2019 PIP Performance Cash Award Agreement (version 2) | ||||||||
2019 PIP Stock Option Award Agreement is incorporated by reference to Exhibit 10(iii)(A)(58) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.* |
The Interpublic Restricted Cash Plan, Restatement effective as of November 12, 2020 is incorporated by reference to Exhibit 10(iii)(A)(61) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.* | ||||||||
Restricted Cash Award | ||||||||
The Interpublic Senior Executive Incentive Plan is incorporated by reference to Exhibit 10(iii)(a)(7) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.* | ||||||||
The Interpublic Group Executive Performance (162(m) Plan) is incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on May 28, 2014.* | ||||||||
The Interpublic Executive Severance Plan, amended and restated, effective August 16, 2017, is incorporated by reference to Exhibit 10(iii)(A)(1) to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017.* | ||||||||
The Interpublic Capital Accumulation Plan, Amended and Restated (the “Restated CAP”), effective January 1, 2007, is incorporated by reference to Exhibit 10(iii)(A)(4) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.* | ||||||||
Restated CAP - Form of Restated Participation Agreement is incorporated by reference to Exhibit 10(iii)(A)(5) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.* | ||||||||
Restated CAP - Form of Participation Agreement (Form For New Participants), is incorporated by reference to Exhibit 10(iii)(A)(6) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.* | ||||||||
The Interpublic Capital Accumulation Plan, amended and restated, effective August 1, 2014, and form of Participation Agreement for New Participants is incorporated by reference to Exhibit 10(iii)(A)(1) to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014.* | ||||||||
Description of Changes to the Compensation for Non-Management Directors is incorporated by reference to Exhibit 10(iii) | ||||||||
Subsidiaries of the Registrant. | ||||||||
Consent of PricewaterhouseCoopers LLP. | ||||||||
Power of Attorney to sign Form 10-K and resolution of Board of Directors re Power of Attorney. | ||||||||
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 December 31, | |||||||
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. | ||||||||
(Registrant) | ||||||||
/s/ Philippe Krakowsky | ||||||||
Chief Executive Officer |
Name | Title | Date | ||||||
/s/ Philippe Krakowsky | Chief Executive Officer and Director (Principal Executive Officer) | February 21, 2023 | ||||||
Philippe Krakowsky | ||||||||
/s/ Ellen Johnson | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February 21, | ||||||
Ellen Johnson | ||||||||
/s/ Christopher F. Carroll | Senior Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer) | February 21, | ||||||
Christopher F. Carroll | ||||||||
/s/ Jocelyn Carter-Miller | Director | February 21, | ||||||
Jocelyn Carter-Miller | ||||||||
/s/ Mary J. Steele Guilfoile | Director | February 21, | ||||||
Mary J. Steele Guilfoile | ||||||||
/s/ Dawn Hudson | Director | February 21, | ||||||
Dawn Hudson | ||||||||
/s/ Jonathan F. Miller | Director | February 21, | ||||||
Jonathan F. Miller | ||||||||
/s/ Patrick Q. Moore | Director | February 21, | ||||||
Patrick Q. Moore | ||||||||
/s/ Linda S. Sanford | Director | February 21, | ||||||
Linda Sanford | ||||||||
/s/ David M. Thomas | Director | February 21, | ||||||
David M. Thomas | ||||||||
/s/ E. Lee Wyatt Jr. | Director | February 21, | ||||||
E. Lee Wyatt Jr. |