Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 15, 2019 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-6686 | |
Entity Registrant Name | INTERPUBLIC GROUP OF COMPANIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-1024020 | |
Entity Address, Address Description | 909 Third Avenue, | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10022 | |
Area Code | (212) | |
Local Phone Number | 704-1200 | |
Title of each class | Common Stock, par value $0.10 per share | |
Trading Symbol | IPG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000051644 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 387,732,100 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUE: | ||||
Net revenue | $ 2,061.4 | $ 1,895.7 | $ 6,192.1 | $ 5,617.9 |
Billable expenses | 376.7 | 401.8 | 1,127.4 | 1,240.5 |
Total revenue | 2,438.1 | 2,297.5 | 7,319.5 | 6,858.4 |
OPERATING EXPENSES: | ||||
Salaries and related expenses | 1,334.4 | 1,251.4 | 4,136.7 | 3,874.6 |
Office and other direct expenses | 367.9 | 317 | 1,144.4 | 974.1 |
Billable expenses | 376.7 | 401.8 | 1,127.4 | 1,240.5 |
Cost of services | 2,079 | 1,970.2 | 6,408.5 | 6,089.2 |
Selling, general and administrative expenses | 9.8 | 21.6 | 69.3 | 85.5 |
Depreciation and amortization | 69 | 44 | 213.1 | 134 |
Restructuring charges | 0 | 0 | 33.9 | 0 |
Total operating expenses | 2,157.8 | 2,035.8 | 6,724.8 | 6,308.7 |
OPERATING INCOME | 280.3 | 261.7 | 594.7 | 549.7 |
EXPENSES AND OTHER INCOME: | ||||
Interest expense | (49.7) | (27.6) | (151.1) | (73.6) |
Interest income | 9.5 | 5.3 | 25 | 14 |
Other expense, net | (7.4) | (15.3) | (18.1) | (56) |
Total (expenses) and other income | (47.6) | (37.6) | (144.2) | (115.6) |
Income before income taxes | 232.7 | 224.1 | 450.5 | 434.1 |
Provision for income taxes | 64.6 | 60.7 | 118.7 | 137 |
Income of consolidated companies | 168.1 | 163.4 | 331.8 | 297.1 |
Equity in net income (loss) of unconsolidated affiliates | 0.3 | 0.1 | (0.1) | (1.9) |
NET INCOME | 168.4 | 163.5 | 331.7 | 295.2 |
Net income attributable to noncontrolling interests | (2.8) | (2.5) | (4.6) | (2.5) |
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ 165.6 | $ 161 | $ 327.1 | $ 292.7 |
Earnings per share, Basic | $ 0.43 | $ 0.42 | $ 0.85 | $ 0.76 |
Earnings per share, Diluted | $ 0.42 | $ 0.41 | $ 0.84 | $ 0.75 |
Weighted-average number of common shares outstanding, Basic | 386.7 | 382.6 | 385.8 | 383.2 |
Weighted-average number of common shares outstanding, Diluted | 391.8 | 388.4 | 390.3 | 388.4 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 168.4 | $ 163.5 | $ 331.7 | $ 295.2 |
Foreign currency translation: | ||||
Foreign currency translation adjustments | (50.9) | (27.9) | (38.4) | (121.9) |
Reclassification adjustments recognized in net income | (0.6) | 3.3 | 5.2 | 16.7 |
Foreign currency transaction and translation adjustment, net of tax | (51.5) | (24.6) | (33.2) | (105.2) |
Derivative Instrument: | ||||
Recognition of previously unrealized losses in net income | 0.6 | 0.6 | 1.8 | 1.7 |
Income tax effect | (0.2) | (0.2) | (0.4) | (0.5) |
Net unrecognized gains on derivative instruments, net of tax | 0.4 | 0.4 | 1.4 | 1.2 |
Defined benefit pension and other postretirement plans: | ||||
Net actuarial gains (losses) for the period | 0 | 0 | 0.7 | (1.4) |
Amortization of unrecognized losses, transition obligation and prior service cost included in net income | 1.7 | 1.8 | 5 | 5.7 |
Settlement and curtailment losses included in net income | 0 | 0.1 | 0 | 0.3 |
Other | (0.1) | 0 | 0.2 | (0.4) |
Income tax effect | (0.2) | (0.1) | (0.4) | 0 |
Defined benefit pension and other postretirement plans adjustment, net of tax | 1.4 | 1.8 | 5.5 | 4.2 |
Other comprehensive loss, net of tax | (49.7) | (22.4) | (26.3) | (99.8) |
TOTAL COMPREHENSIVE INCOME | 118.7 | 141.1 | 305.4 | 195.4 |
Less: comprehensive income attributable to noncontrolling interests | 1.4 | 2 | 3.4 | 0.2 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO IPG | $ 117.3 | $ 139.1 | $ 302 | $ 195.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash and cash equivalents | $ 520.5 | $ 673.4 |
Accounts receivable, net of allowance of $38.8 and $42.5, respectively | 4,047.8 | 5,126.6 |
Accounts receivable, billable to clients | 2,018.7 | 1,900.6 |
Assets held for sale | 22.8 | 5.7 |
Other current assets | 440.2 | 476.6 |
Total current assets | 7,050 | 8,182.9 |
Property and equipment, net of accumulated depreciation of $1,097.4 and $1,034.9, respectively | 758.2 | 790.9 |
Deferred income taxes | 279.1 | 247 |
Goodwill | 4,847.4 | 4,875.9 |
Other intangible assets | 1,032.3 | 1,094.7 |
Operating lease right-of-use asset | 1,573.5 | 0 |
Other non-current assets | 457.1 | 428.9 |
TOTAL ASSETS | 15,997.6 | 15,620.3 |
LIABILITIES: | ||
Accounts payable | 5,656 | 6,698.1 |
Accrued liabilities | 634.3 | 806.9 |
Contract liabilities | 562.4 | 533.9 |
Short-term borrowings | 244.8 | 73.7 |
Current portion of long-term debt | 3.3 | 0.1 |
Current portion of operating leases | 261.6 | 0 |
Liabilities held for sale | 36 | 11.2 |
Total current liabilities | 7,398.4 | 8,123.9 |
Long-term debt | 3,367.1 | 3,660.2 |
Non-current operating leases | 1,434.4 | 0 |
Deferred compensation | 394.8 | 422.7 |
Other non-current liabilities | 714.4 | 812.8 |
TOTAL LIABILITIES | 13,309.1 | 13,019.6 |
Redeemable noncontrolling interests | 185.4 | 167.9 |
STOCKHOLDERS' EQUITY: | ||
Common stock | 38.7 | 38.3 |
Additional paid-in capital | 941 | 895.9 |
Retained earnings | 2,455.5 | 2,400.1 |
Accumulated other comprehensive loss, net of tax | (966.2) | (941.1) |
Total IPG stockholders' equity | 2,469 | 2,393.2 |
Noncontrolling interests | 34.1 | 39.6 |
TOTAL STOCKHOLDERS' EQUITY | 2,503.1 | 2,432.8 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 15,997.6 | 15,620.3 |
Parentheticals: | ||
Allowance for doubtful accounts receivable | 38.8 | 42.5 |
Accumulated depreciation, property and equipment | $ 1,097.4 | $ 1,034.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 331.7 | $ 295.2 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 213.1 | 134 |
Provision for uncollectible receivables | 7.7 | 9.4 |
Amortization of restricted stock and other non-cash compensation | 58.3 | 59.7 |
Net amortization of bond discounts and deferred financing costs | 7 | 4.2 |
Deferred income tax provision | (1.5) | (22.9) |
Net losses on sales of businesses | 19.5 | 50 |
Other | 1.5 | 4.2 |
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash: | ||
Accounts receivable | 1,010.2 | 443.6 |
Accounts receivable, billable to clients | (152) | (303) |
Other current assets | (29.5) | (100.6) |
Accounts payable | (952.7) | (766.9) |
Accrued liabilities | (73.5) | (186.5) |
Contract liabilities | 37.2 | 46.1 |
Change in operating lease right-of-use asset and lease liabilities | 2.8 | 0 |
Other non-current assets and liabilities | (56.2) | 6.8 |
Net cash provided by (used in) operating activities | 423.6 | (326.7) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (133.8) | (105.7) |
Acquisitions, net of cash acquired | (0.6) | (12) |
Other investing activities | 13.7 | 1.1 |
Net cash used in investing activities | (120.7) | (116.6) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in short-term borrowings | 173.1 | (4.6) |
Exercise of stock options | 4.2 | 9.1 |
Proceeds from Issuance of Long-term Debt | 0 | 1,994.2 |
Repurchase of common stock | 0 | (117.1) |
Repayment of long-term debt | (300.2) | (4.9) |
Common stock dividends | (272.2) | (241.6) |
Tax payments for employee shares withheld | (22.3) | (28.8) |
Acquisition-related payments | (15.3) | (30.4) |
Distributions to noncontrolling interests | (12.4) | (13.4) |
Other financing activities | 0.1 | (11.9) |
Net cash (used in) provided by financing activities | (445) | 1,550.6 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (11.1) | (35.3) |
Net decrease in cash, cash equivalents and restricted cash | (153.2) | 1,072 |
Cash, cash equivalents, and restricted cash at beginning of period | 677.2 | 797.7 |
Cash, cash equivalents, and restricted cash at end of period | $ 524 | $ 1,869.7 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock, Shares | Common Stock, Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Tax | Treasury Stock | Total IPG Stockholders' Equity | Noncontrolling Interests |
Common Stock, shares | 386.2 | ||||||||
Balance at Dec. 31, 2017 | $ 2,246.3 | $ 38.6 | $ 955.2 | $ 2,104.5 | $ (827.8) | $ (59) | $ 2,211.5 | $ 34.8 | |
Net income | 295.2 | ||||||||
Net income available to IPG common stockholders | 292.7 | 292.7 | 292.7 | ||||||
Net income attributable to noncontrolling interest | 2.5 | 2.5 | |||||||
Other comprehensive loss | (99.8) | (97.5) | (97.5) | ||||||
Other comprehensive loss, attributable to noncontrolling interest | (2.3) | ||||||||
Reclassifications related to redeemable noncontrolling interests | (7.1) | (7.1) | |||||||
Distributions to noncontrolling interests | (13.4) | 13.4 | |||||||
Change in redemption value of redeemable noncontrolling interests | 46.3 | 41.8 | 4.5 | 46.3 | |||||
Repurchases of common stock | (117.1) | 117.1 | 117.1 | ||||||
Common stock dividends ($0.235 and $0.210 per share, respectively) | (241.6) | (241.6) | (241.6) | ||||||
Stock-based compensation, shares | 4.7 | ||||||||
Stock-based compensation, value | 63.8 | 0.5 | 63.3 | 63.8 | |||||
Exercise of stock options, shares | 1.4 | ||||||||
Exercise of stock options, value | 9.2 | 0.1 | 9.1 | 9.2 | |||||
Shares withheld for taxes, shares | (1.2) | ||||||||
Shares withheld for taxes, value | (29) | 0.1 | 28.9 | 29 | |||||
Other | (3.2) | (1.3) | 1.7 | 0.4 | (3.6) | ||||
Balance at Sep. 30, 2018 | 2,170.2 | 39.1 | 1,041.8 | 2,158.4 | (925.3) | (176.1) | 2,137.9 | 32.3 | |
Common Stock, shares | 390.5 | ||||||||
Balance at Jun. 30, 2018 | 2,091.6 | 39 | 1,022.9 | 2,076.7 | (903.4) | (173.5) | 2,061.7 | 29.9 | |
Net income | 163.5 | ||||||||
Net income available to IPG common stockholders | 161 | 161 | 161 | ||||||
Net income attributable to noncontrolling interest | 2.5 | 2.5 | |||||||
Other comprehensive loss | (22.4) | (21.9) | (21.9) | ||||||
Other comprehensive loss, attributable to noncontrolling interest | (0.5) | ||||||||
Reclassifications related to redeemable noncontrolling interests | 0.8 | (0.8) | |||||||
Distributions to noncontrolling interests | (2.8) | 2.8 | |||||||
Change in redemption value of redeemable noncontrolling interests | 1.6 | 1.6 | 1.6 | ||||||
Repurchases of common stock | (2.6) | 2.6 | 2.6 | ||||||
Common stock dividends ($0.235 and $0.210 per share, respectively) | (80.4) | (80.4) | (80.4) | ||||||
Stock-based compensation, shares | 0.1 | ||||||||
Stock-based compensation, value | 15.3 | 0 | 15.3 | 15.3 | |||||
Exercise of stock options, shares | 0.5 | ||||||||
Exercise of stock options, value | 2.2 | 0.1 | 2.1 | 2.2 | |||||
Shares withheld for taxes, shares | 0 | ||||||||
Shares withheld for taxes, value | (0.4) | 0 | 0.4 | 0.4 | |||||
Other | (3.8) | (1.9) | 0.5 | (1.4) | (2.4) | ||||
Balance at Sep. 30, 2018 | 2,170.2 | 39.1 | 1,041.8 | 2,158.4 | (925.3) | $ (176.1) | 2,137.9 | 32.3 | |
Common Stock, shares | 391.1 | ||||||||
Common Stock, shares | 383.6 | ||||||||
Balance at Dec. 31, 2018 | 2,432.8 | 38.3 | 895.9 | 2,400.1 | (941.1) | 2,393.2 | 39.6 | ||
Cumulative effect of accounting change | 2.2 | 2.2 | 2.2 | ||||||
Net income | 331.7 | ||||||||
Net income available to IPG common stockholders | 327.1 | 327.1 | 327.1 | ||||||
Net income attributable to noncontrolling interest | 4.6 | 4.6 | |||||||
Other comprehensive loss | (26.3) | (25.1) | (25.1) | ||||||
Other comprehensive loss, attributable to noncontrolling interest | (1.2) | ||||||||
Reclassifications related to redeemable noncontrolling interests | (2) | (2) | |||||||
Distributions to noncontrolling interests | (12.4) | 12.4 | |||||||
Change in redemption value of redeemable noncontrolling interests | 1.4 | 1.4 | 1.4 | ||||||
Common stock dividends ($0.235 and $0.210 per share, respectively) | (272.2) | (272.2) | (272.2) | ||||||
Stock-based compensation, shares | 3.7 | ||||||||
Stock-based compensation, value | 64.7 | 0.4 | 64.3 | 64.7 | |||||
Exercise of stock options, shares | 0.6 | ||||||||
Exercise of stock options, value | 4.3 | 0.1 | 4.2 | 4.3 | |||||
Shares withheld for taxes, shares | (1) | ||||||||
Shares withheld for taxes, value | (22.5) | 0.1 | 22.4 | 22.5 | |||||
Other | 2.6 | 1 | 3.1 | 4.1 | (1.5) | ||||
Balance at Sep. 30, 2019 | 2,503.1 | 38.7 | 941 | 2,455.5 | (966.2) | 2,469 | 34.1 | ||
Common Stock, shares | 386.4 | ||||||||
Balance at Jun. 30, 2019 | 2,458.4 | 38.6 | 921.4 | 2,381.8 | (917.9) | 2,423.9 | 34.5 | ||
Net income | 168.4 | ||||||||
Net income available to IPG common stockholders | 165.6 | 165.6 | 165.6 | ||||||
Net income attributable to noncontrolling interest | 2.8 | 2.8 | |||||||
Other comprehensive loss | (49.7) | (48.3) | (48.3) | ||||||
Other comprehensive loss, attributable to noncontrolling interest | (1.4) | ||||||||
Reclassifications related to redeemable noncontrolling interests | (2.4) | (2.4) | |||||||
Distributions to noncontrolling interests | (4.3) | 4.3 | |||||||
Change in redemption value of redeemable noncontrolling interests | 0 | 0 | 0 | ||||||
Common stock dividends ($0.235 and $0.210 per share, respectively) | (90.8) | (90.8) | (90.8) | ||||||
Stock-based compensation, shares | 0.1 | ||||||||
Stock-based compensation, value | 16.2 | 0 | 16.2 | 16.2 | |||||
Exercise of stock options, shares | 0.5 | ||||||||
Exercise of stock options, value | 3.7 | 0.1 | 3.6 | 3.7 | |||||
Shares withheld for taxes, shares | (0.1) | ||||||||
Shares withheld for taxes, value | (0.2) | 0 | 0.2 | 0.2 | |||||
Other | 1 | 0 | 1.1 | 1.1 | (0.1) | ||||
Balance at Sep. 30, 2019 | $ 2,503.1 | $ 38.7 | $ 941 | $ 2,455.5 | $ (966.2) | $ 2,469 | $ 34.1 | ||
Common Stock, shares | 386.9 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited Consolidated Financial Statements have been prepared by The Interpublic Group of Companies, Inc. and its subsidiaries (the "Company," "IPG," "we," "us" or "our") in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for reporting interim financial information on Form 10-Q. Accordingly, they do not include certain information and disclosures required for complete financial statements. The preparation of financial statements in conformity with U.S. GAAP requires us to make judgments, assumptions and estimates that affect the amounts reported and disclosed. Actual results could differ from these estimates and assumptions. The consolidated results for interim periods are not necessarily indicative of results for the full year and should be read in conjunction with our 2018 Annual Report on Form 10-K. Cost of services is comprised of the expenses of our revenue-producing reportable segments, Integrated Agency Networks ("IAN") and Constituency Management Group ("CMG"), including salaries and related expenses, office and other direct expenses and billable expenses, and includes an allocation of the centrally managed expenses of our Corporate and other group. Office and other direct expenses include rent expense, professional fees, certain expenses incurred by our staff in servicing our clients and other costs directly attributable to client engagements. Selling, general and administrative expenses are primarily the unallocated expenses of our Corporate and other group, excluding depreciation and amortization. Depreciation and amortization of fixed assets and intangible assets of the Company is disclosed as a separate operating expense. Restructuring charges relate to the Company's implementation of a cost initiative to better align our cost structure with our revenue, as discussed further in Note 9 . In the opinion of management, these unaudited Consolidated Financial Statements include all adjustments, consisting only of normal and recurring adjustments necessary for a fair statement of the information for each period contained therein. Certain reclassifications and immaterial revisions have been made to prior-period financial statements to conform to the current-period presentation. |
Revenue (Notes)
Revenue (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue We have two reportable segments as of September 30, 2019 : IAN and CMG, as further discussed in Note 13 . IAN principally generates revenue from providing advertising and media services as well as a comprehensive array of global communications, marketing services and data management. CMG generates revenue from providing events and public relations services as well as sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. Our agencies are located in over 110 countries, including every significant world market. Our geographic revenue breakdown is listed below. Three months ended Nine months ended Total revenue: 2019 2018 2019 2018 United States $ 1,550.9 $ 1,407.1 $ 4,681.1 $ 4,203.5 International: United Kingdom 201.9 220.9 617.9 626.9 Continental Europe 177.6 177.5 565.8 564.3 Asia Pacific 262.7 267.3 753.3 803.0 Latin America 109.2 95.3 300.3 267.8 Other 135.8 129.4 401.1 392.9 Total International 887.2 890.4 2,638.4 2,654.9 Total Consolidated $ 2,438.1 $ 2,297.5 $ 7,319.5 $ 6,858.4 Three months ended Nine months ended Net revenue: 2019 2018 2019 2018 United States $ 1,313.0 $ 1,160.9 $ 3,964.8 $ 3,424.7 International: United Kingdom 172.1 174.0 522.8 513.2 Continental Europe 155.7 152.0 495.8 489.4 Asia Pacific 205.0 210.6 588.1 603.6 Latin America 97.8 84.0 270.2 239.9 Other 117.8 114.2 350.4 347.1 Total International 748.4 734.8 2,227.3 2,193.2 Total Consolidated $ 2,061.4 $ 1,895.7 $ 6,192.1 $ 5,617.9 IAN Three months ended Nine months ended Total revenue: 2019 2018 2019 2018 United States $ 1,185.3 $ 1,064.2 $ 3,611.2 $ 3,150.6 International 718.6 710.5 2,133.5 2,122.1 Total IAN $ 1,903.9 $ 1,774.7 $ 5,744.7 $ 5,272.7 Net revenue: United States $ 1,103.0 $ 952.9 $ 3,354.0 $ 2,814.2 International 640.9 627.6 1,906.9 1,876.7 Total IAN $ 1,743.9 $ 1,580.5 $ 5,260.9 $ 4,690.9 CMG Three months ended Nine months ended Total revenue: 2019 2018 2019 2018 United States $ 365.6 $ 342.9 $ 1,069.9 $ 1,052.9 International 168.6 179.9 504.9 532.8 Total CMG $ 534.2 $ 522.8 $ 1,574.8 $ 1,585.7 Net revenue: United States $ 210.0 $ 208.0 $ 610.8 $ 610.5 International 107.5 107.2 320.4 316.5 Total CMG $ 317.5 $ 315.2 $ 931.2 $ 927.0 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. September 30, December 31, Accounts receivable, net of allowance of $38.8 and $42.5, respectively $ 4,047.8 $ 5,126.6 Accounts receivable, billable to clients 2,018.7 1,900.6 Contract assets 57.8 67.9 Contract liabilities (deferred revenue) 562.4 533.9 Contract assets are primarily comprised of contract incentives that are generally satisfied annually under the terms of our contracts and are transferred to accounts receivable when the right to payment becomes unconditional. Contract liabilities relate to advance consideration received from customers under the terms of our contracts primarily related to reimbursements of third-party expenses, whether we act as principal or agent, and to a lesser extent, periodic retainer fees, both of which are generally recognized shortly after billing. The majority of our contracts are for periods of one year or less. For those contracts with a term of more than one year, we had approximately $759.0 of unsatisfied performance obligations as of September 30, 2019 , which will be recognized as services are performed over the remaining contractual terms. |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases Effective January 1, 2019, we adopted Accounting Standards Codification Topic 842, Leases , using the modified retrospective transition method. As such, we have recognized a right-of-use asset and a corresponding lease liability on our Consolidated Balance Sheet for virtually all of our leases with a term of more than twelve months. Prior-year financial statements were not recast under the new standard and, therefore, those amounts are not presented below. As an accounting policy, we have elected not to apply the recognition requirements to short-term leases, not to separate non-lease components from lease components, and have elected the package of transition provisions available for existing contracts, which allowed us to carry forward our historical assessments of (i) whether contracts are or contain leases, (ii) lease classification and (iii) initial direct costs. We do not have a material amount of finance leases and the majority of our operating leases, for which we serve as the lessee, consist primarily of real-estate property for our offices around the world. Both the asset and liability are measured at the present value of the future lease payments, with the asset being subject to adjustments such as initial direct costs, prepaid lease payments, and lease incentives. Many of our leases provide for renewal and/or termination options, as well as escalation clauses, which are also factored into our lease payments when appropriate. Our leases have remaining lease terms of 1 year to 20 years. The discount rate used to measure the lease asset and liability is determined at the beginning of the lease term using the rate implicit in the lease, if readily determinable, or using the Company's collateralized credit-adjusted borrowing rate. The following table presents information on our operating leases for the three and nine months ended September 30, 2019 . Three months ended Nine months ended Operating lease cost $ 80.9 $ 240.3 Short-term lease cost 3.1 13.1 Sublease income (3.8 ) (8.6 ) Total lease cost $ 80.2 $ 244.8 Nine months ended Cash paid for amounts included in the measurement of lease liabilities $ 247.2 Right-of-use assets obtained in exchange for lease liabilities $ 359.0 As of September 30, 2019 Weighted-average remaining lease term Eight years Weighted-average discount rate 4.32 % Our future payments of our operating leases as of September 30, 2019 are listed in the table below. Period Net Rent 2019 $ 83.6 2020 322.9 2021 291.5 2022 260.5 2023 202.3 Thereafter 861.2 Total future lease payments 2,022.0 Less: imputed interest (326.0 ) Present value of future lease payments 1,696.0 Less: current portion of operating leases 261.6 Non-current operating leases $ 1,434.4 Our future payments of our operating leases as of December 31, 2018 are listed in the table below. 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 As of September 30, 2019 , we have additional operating leases that have not yet commenced with future lease payments of approximately $151.0 that will commence between 2019 and 2020 with lease terms of 4 to 15 years. |
Debt and Credit Arrangements (N
Debt and Credit Arrangements (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Credit Arrangements | Debt and Credit Arrangements Long-Term Debt A summary of the carrying amounts and fair values of our long-term debt is listed below. Effective Interest Rate September 30, December 31, Book Value Fair Value 1 Book Value Fair Value 1 3.50% Senior Notes due 2020 (less unamortized discount and issuance costs of $0.5 and $1.5, respectively) 3.89% $ 498.0 $ 505.8 $ 496.6 $ 499.9 3.75% Senior Notes due 2021 (less unamortized discount and issuance costs of $0.3 and $2.1, respectively) 3.98% 497.6 513.2 496.8 503.2 4.00% Senior Notes due 2022 (less unamortized discount and issuance costs of $0.8 and $0.6, respectively) 4.13% 248.6 258.6 248.2 250.3 3.75% Senior Notes due 2023 (less unamortized discount and issuance costs of $0.5 and $1.4, respectively) 4.32% 498.1 523.6 497.7 491.4 4.20% Senior Notes due 2024 (less unamortized discount and issuance costs of $0.5 and $1.9, respectively) 4.24% 497.6 535.9 497.3 492.6 4.65% Senior Notes due 2028 (less unamortized discount and issuance costs of $1.6 and $4.0, respectively) 4.78% 494.4 561.4 494.0 494.1 5.40% Senior Notes due 2048 (less unamortized discount and issuance costs of $2.8 and $5.4, respectively) 5.48% 491.8 596.7 491.7 474.1 Term Loan due 2021 - LIBOR plus 1.25% 100.0 100.0 400.0 400.0 Other notes payable and capitalized leases 44.3 44.3 38.0 38.0 Total long-term debt 3,370.4 3,660.3 Less: current portion 3.3 0.1 Long-term debt, excluding current portion $ 3,367.1 $ 3,660.2 1 See Note 14 for information on the fair value measurement of our long-term debt. Term Loan Agreement On October 1, 2018, in order to fund the acquisition of Acxiom, we entered into financing arrangements with third-party lenders under a three-year term loan agreement (the "Term Loan Agreement"). On June 13, 2019 and September 9, 2019, we repaid $100.0 and $200.0 , respectively, of the outstanding balance which reduced our borrowings under the agreement to $ 100.0 . Consistent with our other debt securities, the Term Loan Agreement includes covenants that, among other things, limit our liens and the liens of certain of our consolidated subsidiaries. We were in compliance with all of our covenants in the Term Loan Agreement as of September 30, 2019 . Credit Agreements We maintain a committed corporate credit facility, originally dated as of July 18, 2008, which has been amended and restated from time to time (the "Credit Agreement"). We use our Credit Agreement to increase our financial flexibility, to provide letters of credit primarily to support obligations of our subsidiaries and to support our commercial paper program. The Credit Agreement is a revolving facility, expiring in October 2022 , under which amounts borrowed by us or any of our subsidiaries designated under the Credit Agreement may be repaid and reborrowed, subject to an aggregate lending limit of $1,500.0 , or the equivalent in other currencies. The Company has the ability to increase the commitments under the Credit Agreement from time to time by an additional amount of up to $250.0 , provided the Company receives commitments for such increases and satisfies certain other conditions. The aggregate available amount of letters of credit outstanding may decrease or increase, subject to a sublimit on letters of credit of $50.0 , or the equivalent in other currencies. Our obligations under the Credit Agreement are unsecured. As of September 30, 2019 , there were no borrowings under the Credit Agreement; however, we had $8.6 of letters of credit under the Credit Agreement, which reduced our total availability to $1,491.4 . We were in compliance with all of our covenants in the Credit Agreement as of September 30, 2019 . We also have uncommitted lines of credit with various banks that permit borrowings at variable interest rates and that are primarily used to fund working capital needs. We have guaranteed the repayment of some of these borrowings made by certain subsidiaries. If we lose access to these credit lines, we would have to provide funding directly to some of our operations. As of September 30, 2019 , the Company had uncommitted lines of credit in an aggregate amount of $1,091.2 , under which we had outstanding borrowings of $64.8 classified as short-term borrowings on our Consolidated Balance Sheet. The average amount outstanding during the third quarter of 2019 was $106.6 , with a weighted-average interest rate of approximately 5.3% . Commercial Paper The Company is authorized to issue unsecured commercial paper up to a maximum aggregate amount outstanding at any time of $1,500.0 . Borrowings under the program are supported by the Credit Agreement described above. Proceeds of the commercial paper are used for working capital and general corporate purposes, including the repayment of maturing indebtedness and other short-term liquidity needs. The maturities of the commercial paper vary but may not exceed 397 days from the date of issue. As of September 30, 2019 , there was $180.0 of commercial paper outstanding classified as short-term borrowings on our Consolidated Balance Sheet. The average amount outstanding under the program during the third quarter of 2019 was $349.5 , with a weighted-average interest rate of 2.5% and a weighted-average maturity of 9 days. |
Acquisitions (Notes)
Acquisitions (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acxiom Acquisition On October 1, 2018, the Company completed its acquisition of Acxiom. The purchase accounting for the transaction was finalized during the third quarter of 2019, including the assignment of goodwill related to the transaction-associated synergies. There were no material adjustments to the preliminary amounts recorded. Other Acquisitions During the first nine months of 2019 , we completed one acquisition, a content communications agency based in the U.K. This acquisition was included in the IAN reportable segment. During the first nine months of 2019 , we recorded $7.6 of goodwill and intangible assets related to our acquisitions. During the first nine months of 2018 , we completed three acquisitions, including a full-service digital agency based in Brazil, an entertainment marketing and brand licensing agency in the fashion and lifestyle sector based in the United Kingdom., and a content-focused social creative agency based in the United Kingdom All three of our acquisitions were included in the CMG reportable segment. During the first nine months of 2018 , we recorded $24.0 of goodwill and intangible assets related to our acquisitions. The results of operations of our acquired companies were included in our consolidated results from the closing date of each acquisition. Details of cash paid for current and prior years' acquisitions are listed below. Nine months ended 2019 2018 Cost of investment: current-year acquisitions $ 0.6 $ 12.3 Cost of investment: prior-year acquisitions 15.3 30.6 Less: net cash acquired — (0.5 ) Total cost of investment 15.9 42.4 Operating payments 1 9.3 18.3 Total cash paid for acquisitions 2 $ 25.2 $ 60.7 1 Represents cash payments for amounts that have been recognized in operating expenses since the date of acquisition either relating to adjustments to estimates in excess of the initial value of contingent payments recorded or were contingent upon the future employment of the former owners of the acquired companies. Amounts are reflected in the operating section of the unaudited Consolidated Statements of Cash Flows. 2 Of the total cash paid for acquisitions, $0.6 and $12.0 for the nine months ended September 30, 2019 and 2018 , respectively, are classified under the investing section of the unaudited Consolidated Statements of Cash Flows, as acquisitions, net of cash acquired. These amounts relate to initial payments for new transactions. Of the total cash paid for acquisitions, $15.3 and $30.4 for the nine months ended September 30, 2019 and 2018 , respectively, are classified under the financing section of the unaudited Consolidated Statements of Cash Flows as acquisition-related payments. These amounts relate to deferred payments and increases in our ownership interest for prior acquisitions. Redeemable Noncontrolling Interests Many of our acquisitions include provisions under which the noncontrolling equity owners may require us to purchase additional interests in a subsidiary at their discretion. Redeemable noncontrolling interests are adjusted quarterly to their estimated redemption value, but not less than their initial fair value. Any adjustments to the redemption value impact retained earnings or additional paid in capital, except for foreign currency translation adjustments. The following table presents changes in our redeemable noncontrolling interests. Nine months ended 2019 2018 Balance at beginning of period $ 167.9 $ 252.1 Change in related noncontrolling interests balance (2.1 ) (15.5 ) Changes in redemption value of redeemable noncontrolling interests: Additions 24.3 0.0 Redemptions (3.1 ) (33.7 ) Redemption value adjustments (1.6 ) (43.2 ) Balance at end of period $ 185.4 $ 159.7 |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share The following sets forth basic and diluted earnings per common share available to IPG common stockholders. Three months ended Nine months ended 2019 2018 2019 2018 Net income available to IPG common stockholders $ 165.6 $ 161.0 $ 327.1 $ 292.7 Weighted-average number of common shares outstanding - basic 386.7 382.6 385.8 383.2 Dilutive effect of stock options and restricted shares 5.1 5.8 4.5 5.2 Weighted-average number of common shares outstanding - diluted 391.8 388.4 390.3 388.4 Earnings per share available to IPG common stockholders: Basic $ 0.43 $ 0.42 $ 0.85 $ 0.76 Diluted $ 0.42 $ 0.41 $ 0.84 $ 0.75 |
Supplementary Data (Notes)
Supplementary Data (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Supplementary Data [Abstract] | |
Accrued Liabilities | Accrued Liabilities The following table presents the components of accrued liabilities. September 30, December 31, Salaries, benefits and related expenses $ 395.3 $ 494.9 Interest 59.1 43.6 Acquisition obligations 41.6 65.7 Office and related expenses 24.3 52.2 Restructuring charges 3.6 0.0 Other 110.4 150.5 Total accrued liabilities $ 634.3 $ 806.9 |
Other Income, Net | Other Expense, Net Results of operations for the three and nine months ended September 30, 2019 and 2018 include certain items that are not directly associated with our revenue-producing operations. Three months ended Nine months ended 2019 2018 2019 2018 Net losses on sales of businesses $ (7.7 ) $ (5.8 ) $ (19.5 ) $ (50.0 ) Other 0.3 (9.5 ) 1.4 (6.0 ) Total other expense, net $ (7.4 ) $ (15.3 ) $ (18.1 ) $ (56.0 ) Net losses on sales of businesses – During the three and nine months ended September 30, 2019 , the amounts recognized were related to sales of businesses and the classification of certain assets and liabilities, consisting primarily of cash, as held for sale within our IAN reportable segment. During the three and nine months ended September 30, 2018 , the amounts recognized were related to sales of businesses and the classification of certain assets and liabilities, consisting primarily of cash, as held for sale within our IAN and CMG reportable segments. The businesses held for sale primarily represent unprofitable, non-strategic agencies which are expected to be sold within the next twelve months. Other – During the nine months ended September 30, 2019 , the amounts recognized are primarily a result of changes in fair market value of equity investments, partially offset by the sale of an equity investment. During the three and nine months ended September 30, 2018, the amounts recognized are primarily a result of transaction-related costs from the Acxiom acquisition. |
Share Repurchase Program | Share Repurchase Program On July 2, 2018, in connection with the announcement of the Acxiom acquisition, we announced that share repurchases will be suspended for a period of time in order to reduce the increased debt levels incurred in conjunction with the acquisition. As of September 30, 2019 , $338.4 |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and nine months ended September 30, 2019 , our income tax provision was negatively impacted by losses in certain foreign jurisdictions where we receive no tax benefit due to 100% valuation allowances, and net losses on sales of businesses and the classification of certain assets as held for sale, for which we did not receive a tax benefit, partially offset by excess tax benefits on employee share-based payments. For the nine months ended September 30, 2019, our income tax provision was also positively impacted by the settlement of state income tax audits. We have various tax years under examination by tax authorities in various countries, and in various states, in which we have significant business operations. It is not yet known whether these examinations will, in the aggregate, result in our paying additional taxes. We believe our tax reserves are adequate in relation to the potential for additional assessments in each of the jurisdictions in which we are subject to taxation. We regularly assess the likelihood of additional tax assessments in those jurisdictions and, if necessary, adjust our reserves as additional information or events require. With respect to all tax years open to examination by U.S. federal, various state and local, and non-U.S. tax authorities, we currently anticipate that total unrecognized tax benefits will decrease by an amount between $10.0 and $20.0 in the next twelve months, a portion of which will affect our effective income tax rate, primarily as a result of the settlement of tax examinations and the lapsing of statutes of limitations. We are effectively settled with respect to U.S. federal income tax audits through 2012, with the exception of 2009. With limited exceptions, we are no longer subject to state and local income tax audits for years prior to 2013 or non-U.S. income tax audits for years prior to 2009. |
Restructuring Charges (Notes)
Restructuring Charges (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Charges In the first quarter of 2019 , the Company implemented a cost initiative (the "2019 Plan") to better align our cost structure with our revenue primarily related to specific client losses occurring in 2018, the components of which are listed below. Nine months ended Severance and termination costs $ 22.0 Lease restructuring costs 11.9 Total restructuring charges $ 33.9 Net restructuring charges were comprised of $27.6 at IAN and $5.6 at CMG for the first nine months of 2019 . All restructuring actions were identified and initiated by the end of the first quarter of 2019, with all actions substantially completed by the end of the second quarter of 2019 and we don't expect any further restructuring adjustments. During the first nine months of 2019 , severance and termination costs related to a planned reduction in workforces of 627 employees. The employee groups affected include executive, regional and account management as well as administrative, creative and media production personnel. Cash payments of $18.4 were made during the first nine months of 2019 , with the remaining liability of $3.6 expected to be paid by the end of the fourth quarter of 2019 . Lease impairment costs relate to the office spaces that were vacated as part of the 2019 Plan, which includes impairment on the right-of-use asset of operating leases, furniture, and leasehold improvements. Given the remaining lease terms involved, the lease obligation will be paid out over a period of several years, net of sublease income. |
Incentive Compensation Plans (N
Incentive Compensation Plans (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Incentive Compensation Plans | Incentive Compensation Plans We issue stock-based compensation and cash awards to our employees under a plan established by the Compensation and Leadership Talent Committee of the Board of Directors (the "Compensation Committee") and approved by our shareholders. In May 2019, our shareholders approved the 2019 Performance Incentive Plan (the “2019 PIP”), replacing the 2014 Performance Incentive Plan (the “2014 PIP”) and previous incentive plans. The number of shares of common stock initially available for grants of all equity awards under the 2019 PIP is 27.0 . Pursuant to the terms of the 2019 PIP, the number of shares that may be awarded to any one participant for any stock based awards is limited to 2.0 shares in the aggregate. The vesting period of awards granted is generally commensurate with the requisite service period. We generally issue new shares to satisfy the exercise of stock options or the distribution of other stock-based awards. Additionally, under the 2019 PIP, we have the ability to issue performance cash awards. The performance cash awards are granted to certain employees who otherwise would have been eligible to receive performance-based stock awards. These awards have a service period vesting condition and a performance vesting condition. The amount of the performance cash award received by an employee with a performance vesting condition can range from 0% to 300% of the target amount of the original grant value. Performance cash awards generally vest in three years. A committee of the Board of Directors may grant performance cash awards to any eligible employee; however, no employee can receive more than $10.0 during a performance period. We issued the following stock-based awards under the 2014 PIP and 2019 PIP during the nine months ended September 30, 2019 . Awards Weighted-average grant-date fair value (per award) Restricted stock (shares or units) 2.5 $ 22.78 Performance-based stock (shares) 2.1 $ 20.16 Total stock-based compensation awards 4.6 During the nine months ended September 30, 2019 , the Compensation Committee granted performance cash awards under the 2014 and 2019 PIP and restricted cash awards under the 2009 Restricted Cash Plan with a total annual target value of $40.6 and $20.3 , respectively. Cash awards are expensed over the vesting period, typically three years . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Net of Tax (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Loss, Net of Tax The following tables present the changes in accumulated other comprehensive loss, net of tax, by component. Foreign Currency Translation Adjustments Derivative Instruments Defined Benefit Pension and Other Postretirement Plans Total Balance as of December 31, 2018 $ (716.4 ) $ (5.3 ) $ (219.4 ) $ (941.1 ) Other comprehensive (loss) income before reclassifications (37.2 ) 0.0 1.6 (35.6 ) Amount reclassified from accumulated other comprehensive loss, net of tax 5.2 1.4 3.9 10.5 Balance as of September 30, 2019 $ (748.4 ) $ (3.9 ) $ (213.9 ) $ (966.2 ) 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 before reclassifications (119.6 ) 0.0 (0.6 ) (120.2 ) Amount reclassified from accumulated other comprehensive loss, net of tax 16.7 1.2 4.8 22.7 Balance as of September 30, 2018 $ (688.2 ) $ (5.6 ) $ (231.5 ) $ (925.3 ) Amounts reclassified from accumulated other comprehensive loss, net of tax, for the three and nine months ended September 30, 2019 and 2018 are as follows: Three months ended Nine months ended Affected Line Item in the Consolidated Statements of Operations 2019 2018 2019 2018 Foreign currency translation adjustments $ (0.6 ) $ 3.3 $ 5.2 $ 16.7 Other expense, net Losses on derivative instruments 0.6 0.6 1.8 1.7 Interest expense Amortization of defined benefit pension and postretirement plan items 1.7 1.9 5.0 6.0 Other expense, net Tax effect (0.6 ) (0.6 ) (1.5 ) (1.7 ) Provision for income taxes Total amount reclassified from accumulated other comprehensive loss, net of tax $ 1.1 $ 5.2 $ 10.5 $ 22.7 |
Employee Benefits (Notes)
Employee Benefits (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee Benefits | Employee Benefits We have a defined benefit pension plan that covers certain U.S. employees (the “Domestic Pension Plan”). We also have numerous funded and unfunded plans outside the U.S. The Interpublic Limited Pension Plan in the U.K. is a defined benefit plan and is our most material foreign pension plan in terms of the benefit obligation and plan assets. Some of our domestic and foreign subsidiaries provide postretirement health benefits and life insurance to eligible employees and, in certain cases, their dependents. The domestic postretirement benefit plan is our most material postretirement benefit plan in terms of the benefit obligation. Certain immaterial foreign pension and postretirement benefit plans have been excluded from the table below. The components of net periodic cost for the Domestic Pension Plan, the significant foreign pension plans and the domestic postretirement benefit plan are listed below. Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Three months ended September 30, 2019 2018 2019 2018 2019 2018 Service cost $ 0.0 $ 0.0 $ 1.2 $ 1.1 $ 0.0 $ 0.0 Interest cost 1.2 1.2 3.0 3.1 0.3 0.3 Expected return on plan assets (1.5 ) (1.7 ) (4.2 ) (4.5 ) 0.0 0.0 Settlements and curtailments 0.0 0.0 0.0 0.1 0.0 0.0 Amortization of: Prior service cost (credit) 0.0 0.0 0.0 0.0 0.0 0.0 Unrecognized actuarial losses 0.5 0.4 1.2 1.4 0.0 0.0 Net periodic cost $ 0.2 $ (0.1 ) $ 1.2 $ 1.2 $ 0.3 $ 0.3 Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Nine months ended September 30, 2019 2018 2019 2018 2019 2018 Service cost $ 0.0 $ 0.0 $ 3.5 $ 3.1 $ 0.0 $ 0.0 Interest cost 3.6 3.4 9.3 9.9 0.9 0.8 Expected return on plan assets (4.4 ) (5.0 ) (13.0 ) (14.2 ) 0.0 0.0 Settlements and curtailments 0.0 0.0 0.0 0.3 0.0 0.0 Amortization of: Prior service cost (credit) 0.0 0.0 0.1 0.1 (0.1 ) (0.1 ) Unrecognized actuarial losses 1.4 1.2 3.6 4.4 0.0 0.1 Net periodic cost $ 0.6 $ (0.4 ) $ 3.5 $ 3.6 $ 0.8 $ 0.8 The components of net periodic cost other than the service cost component are included in the line item “ Other expense, net ” in the Consolidated Statements of Operations. During the nine months ended September 30, 2019 , we contributed $1.9 and $13.1 of cash to our domestic and foreign pension plans, respectively. For the remainder of 2019, we expect to contribute approximately $1.0 and $4.0 of cash to our domestic and foreign pension plans, respectively. |
Segment Information (Notes)
Segment Information (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | Segment Information As of September 30, 2019 , we have two reportable segments: IAN and CMG. IAN is comprised of McCann Worldgroup, FCB (Foote, Cone & Belding), MullenLowe Group, IPG Mediabrands, Acxiom, our digital specialist agencies and our domestic integrated agencies. CMG is comprised of a number of our specialist marketing services offerings. We also report results for the Corporate and other group. Beginning in the first quarter of 2019, Acxiom's results are presented in IAN, although we continue to evaluate our financial reporting structure, and the profitability measure employed by our chief operating decision maker for allocating resources to operating divisions and assessing operating division performance is segment EBITA. Summarized financial information concerning our reportable segments is shown in the following table. Three months ended Nine months ended 2019 2018 2019 2018 Total revenue: IAN $ 1,903.9 $ 1,774.7 $ 5,744.7 $ 5,272.7 CMG 534.2 522.8 1,574.8 1,585.7 Total $ 2,438.1 $ 2,297.5 $ 7,319.5 $ 6,858.4 Net revenue: IAN $ 1,743.9 $ 1,580.5 $ 5,260.9 $ 4,690.9 CMG 317.5 315.2 931.2 927.0 Total $ 2,061.4 $ 1,895.7 $ 6,192.1 $ 5,617.9 Segment EBITA: IAN $ 261.2 $ 240.2 $ 637.4 $ 543.4 CMG 51.8 49.2 97.3 113.1 Corporate and other (11.0 ) (22.6 ) (75.4 ) (91.2 ) Total $ 302.0 $ 266.8 $ 659.3 $ 565.3 Amortization of acquired intangibles: IAN $ 20.6 $ 3.9 $ 61.3 $ 11.9 CMG 1.1 1.2 3.3 3.7 Corporate and other 0.0 0.0 0.0 0.0 Total $ 21.7 $ 5.1 $ 64.6 $ 15.6 Depreciation: IAN $ 41.3 $ 33.0 $ 128.8 $ 98.2 CMG 4.8 4.9 14.3 14.5 Corporate and other 1.2 1.0 5.4 5.7 Total $ 47.3 $ 38.9 $ 148.5 $ 118.4 Capital expenditures: IAN $ 44.5 $ 35.2 $ 106.9 $ 82.9 CMG 4.0 4.2 7.9 7.2 Corporate and other 5.2 4.8 19.0 15.6 Total $ 53.7 $ 44.2 $ 133.8 $ 105.7 September 30, December 31, Total assets 1 : IAN $ 13,998.5 $ 13,867.9 CMG 1,656.1 1,516.7 Corporate and other 343.0 235.7 Total $ 15,997.6 $ 15,620.3 1 Results for December 31, 2018 have been restated to conform to the current-period presentation. The following table presents the reconciliation of segment EBITA to Income before income taxes. Three months ended Nine months ended 2019 2018 2019 2018 IAN EBITA $ 261.2 $ 240.2 $ 637.4 $ 543.4 CMG EBITA 51.8 49.2 97.3 113.1 Corporate and other EBITA (11.0 ) (22.6 ) (75.4 ) (91.2 ) Less: consolidated amortization of acquired intangibles 21.7 5.1 64.6 15.6 Operating income 280.3 261.7 594.7 549.7 Total (expenses) and other income (47.6 ) (37.6 ) (144.2 ) (115.6 ) Income before income taxes $ 232.7 $ 224.1 $ 450.5 $ 434.1 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Authoritative guidance for fair value measurements establishes a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: 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. Financial Instruments that are Measured at Fair Value on a Recurring Basis We primarily apply the market approach to determine the fair value of financial instruments that are measured at fair value on a recurring basis. There were no changes to our valuation techniques used to determine the fair value of financial instruments during the nine months ended September 30, 2019 . The following tables present information about our financial instruments measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 , and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. September 30, 2019 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 132.4 $ 0.0 $ 0.0 $ 132.4 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 106.2 $ 106.2 Accrued liabilities and Other non-current liabilities December 31, 2018 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 132.1 $ 0.0 $ 0.0 $ 132.1 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 148.4 $ 148.4 Accrued liabilities and Other non-current liabilities 1 Contingent acquisition obligations includes deferred acquisition payments and unconditional obligations to purchase additional noncontrolling equity shares of consolidated subsidiaries. Fair value measurement of the obligations is based upon actual and projected operating performance targets as specified in the related agreements. The decrease in this balance of $42.2 from December 31, 2018 to September 30, 2019 is primarily due to payments and a reclassification from an arrangement during the second quarter of 2019. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. Financial Instruments that are not Measured at Fair Value on a Recurring Basis The following table presents information about our financial instruments that are not measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Total long-term debt $ 0.0 $ 3,595.2 $ 44.3 $ 3,639.5 $ 0.0 $ 3,605.6 $ 38.0 $ 3,643.6 Our long-term debt is comprised of senior notes, a term loan and other notes payable. The fair value of our senior notes, which are traded over-the-counter, is based on quoted prices in markets that are not active. Therefore, these senior notes are classified as Level 2 within the fair value hierarchy. Our term loan is a fixed price commitment that cannot be traded on the open market, and therefore is classified as Level 2 within the fair value hierarchy. Our other notes payable are not actively traded, and their fair value is not solely derived from readily observable inputs. The fair value of our other notes payable is determined based on a discounted cash flow model and other proprietary valuation methods, and therefore is classified as Level 3 within the fair value hierarchy. See Note 4 for further information on our long-term debt. Non-financial Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis, primarily goodwill, intangible assets, and property and equipment. Accordingly, these assets are not measured and adjusted to fair value on an ongoing basis but are subject to periodic evaluations for potential impairment. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters We are involved in various legal proceedings, and subject to investigations, inspections, audits, inquiries and similar actions by governmental authorities, arising in the normal course of business. The types of allegations that arise in connection with such legal proceedings may vary in nature, but can include claims related to contract, employment, tax and intellectual property matters. We evaluate all cases each reporting period and record liabilities for losses from legal proceedings when we determine that it is probable that the outcome in a legal proceeding will be unfavorable and the amount, or potential range, of loss can be reasonably estimated. In certain cases, we cannot reasonably estimate the potential loss because, for example, the litigation is in its early stages. While any outcome related to litigation or such governmental proceedings in which we are involved cannot be predicted with certainty, management believes that the outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial condition, results of operations or cash flows. Guarantees As discussed in our 2018 Annual Report on Form 10-K, we have guaranteed certain obligations of our subsidiaries relating principally to operating leases, uncommitted lines of credit and cash pooling arrangements. As of September 30, 2019 and December 31, 2018 , the amount of parent company guarantees on lease obligations was $764.5 and $824.5 , respectively, the amount of parent company guarantees relating to uncommitted lines of credit was $310.2 and $349.1 , respectively, and the amount of parent company guarantees related to daylight overdrafts, primarily utilized to manage intra-day overdrafts due to timing of transactions under cash pooling arrangements without resulting in incremental borrowings, was $199.0 and $207.8 , respectively. |
Recent Accounting Standards (No
Recent Accounting Standards (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Accounting pronouncements not listed below were assessed and determined to be not applicable or are expected to have minimal impact on our Consolidated Financial Statements. Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued amended guidance on lease accounting. We adopted the standard using the modified retrospective approach with an effective date of January 1, 2019. Prior-year financial statements were not recast under the new standard. The adoption resulted in the presentation of a right-of-use asset and lease liability on our Consolidated Balance Sheet and corresponding impacts on our Consolidated Statement of Cash Flows, but did not have a significant impact on our Consolidated Statements of Operations. See Note 3 for further discussion on our adoption of the new leases standard. Financial Instrument Credit Losses In June 2016, the FASB issued amended guidance on the accounting for credit losses on certain types of financial instruments, including trade receivables. The new model uses a forward-looking expected loss method, as opposed to the incurred loss method in current U.S. GAAP, which will generally result in earlier recognition of allowances for losses. This amended guidance is effective beginning January 1, 2020, with early adoption permitted as early as January 1, 2019. We are currently assessing the impact the adoption of the amended guidance will have on our Consolidated Financial Statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue Principal Geographic Markets | Our agencies are located in over 110 countries, including every significant world market. Our geographic revenue breakdown is listed below. Three months ended Nine months ended Total revenue: 2019 2018 2019 2018 United States $ 1,550.9 $ 1,407.1 $ 4,681.1 $ 4,203.5 International: United Kingdom 201.9 220.9 617.9 626.9 Continental Europe 177.6 177.5 565.8 564.3 Asia Pacific 262.7 267.3 753.3 803.0 Latin America 109.2 95.3 300.3 267.8 Other 135.8 129.4 401.1 392.9 Total International 887.2 890.4 2,638.4 2,654.9 Total Consolidated $ 2,438.1 $ 2,297.5 $ 7,319.5 $ 6,858.4 Three months ended Nine months ended Net revenue: 2019 2018 2019 2018 United States $ 1,313.0 $ 1,160.9 $ 3,964.8 $ 3,424.7 International: United Kingdom 172.1 174.0 522.8 513.2 Continental Europe 155.7 152.0 495.8 489.4 Asia Pacific 205.0 210.6 588.1 603.6 Latin America 97.8 84.0 270.2 239.9 Other 117.8 114.2 350.4 347.1 Total International 748.4 734.8 2,227.3 2,193.2 Total Consolidated $ 2,061.4 $ 1,895.7 $ 6,192.1 $ 5,617.9 IAN Three months ended Nine months ended Total revenue: 2019 2018 2019 2018 United States $ 1,185.3 $ 1,064.2 $ 3,611.2 $ 3,150.6 International 718.6 710.5 2,133.5 2,122.1 Total IAN $ 1,903.9 $ 1,774.7 $ 5,744.7 $ 5,272.7 Net revenue: United States $ 1,103.0 $ 952.9 $ 3,354.0 $ 2,814.2 International 640.9 627.6 1,906.9 1,876.7 Total IAN $ 1,743.9 $ 1,580.5 $ 5,260.9 $ 4,690.9 CMG Three months ended Nine months ended Total revenue: 2019 2018 2019 2018 United States $ 365.6 $ 342.9 $ 1,069.9 $ 1,052.9 International 168.6 179.9 504.9 532.8 Total CMG $ 534.2 $ 522.8 $ 1,574.8 $ 1,585.7 Net revenue: United States $ 210.0 $ 208.0 $ 610.8 $ 610.5 International 107.5 107.2 320.4 316.5 Total CMG $ 317.5 $ 315.2 $ 931.2 $ 927.0 |
Contract Balances | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. September 30, December 31, Accounts receivable, net of allowance of $38.8 and $42.5, respectively $ 4,047.8 $ 5,126.6 Accounts receivable, billable to clients 2,018.7 1,900.6 Contract assets 57.8 67.9 Contract liabilities (deferred revenue) 562.4 533.9 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Leases | The following table presents information on our operating leases for the three and nine months ended September 30, 2019 . Three months ended Nine months ended Operating lease cost $ 80.9 $ 240.3 Short-term lease cost 3.1 13.1 Sublease income (3.8 ) (8.6 ) Total lease cost $ 80.2 $ 244.8 Nine months ended Cash paid for amounts included in the measurement of lease liabilities $ 247.2 Right-of-use assets obtained in exchange for lease liabilities $ 359.0 As of September 30, 2019 Weighted-average remaining lease term Eight years Weighted-average discount rate 4.32 % |
Schedule of Future Operating Lease Payments | Our future payments of our operating leases as of September 30, 2019 are listed in the table below. Period Net Rent 2019 $ 83.6 2020 322.9 2021 291.5 2022 260.5 2023 202.3 Thereafter 861.2 Total future lease payments 2,022.0 Less: imputed interest (326.0 ) Present value of future lease payments 1,696.0 Less: current portion of operating leases 261.6 Non-current operating leases $ 1,434.4 Our future payments of our operating leases as of December 31, 2018 are listed in the table below. 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 |
Debt and Credit Arrangements (T
Debt and Credit Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Amounts and Fair Values of Long-term Debt | A summary of the carrying amounts and fair values of our long-term debt is listed below. Effective Interest Rate September 30, December 31, Book Value Fair Value 1 Book Value Fair Value 1 3.50% Senior Notes due 2020 (less unamortized discount and issuance costs of $0.5 and $1.5, respectively) 3.89% $ 498.0 $ 505.8 $ 496.6 $ 499.9 3.75% Senior Notes due 2021 (less unamortized discount and issuance costs of $0.3 and $2.1, respectively) 3.98% 497.6 513.2 496.8 503.2 4.00% Senior Notes due 2022 (less unamortized discount and issuance costs of $0.8 and $0.6, respectively) 4.13% 248.6 258.6 248.2 250.3 3.75% Senior Notes due 2023 (less unamortized discount and issuance costs of $0.5 and $1.4, respectively) 4.32% 498.1 523.6 497.7 491.4 4.20% Senior Notes due 2024 (less unamortized discount and issuance costs of $0.5 and $1.9, respectively) 4.24% 497.6 535.9 497.3 492.6 4.65% Senior Notes due 2028 (less unamortized discount and issuance costs of $1.6 and $4.0, respectively) 4.78% 494.4 561.4 494.0 494.1 5.40% Senior Notes due 2048 (less unamortized discount and issuance costs of $2.8 and $5.4, respectively) 5.48% 491.8 596.7 491.7 474.1 Term Loan due 2021 - LIBOR plus 1.25% 100.0 100.0 400.0 400.0 Other notes payable and capitalized leases 44.3 44.3 38.0 38.0 Total long-term debt 3,370.4 3,660.3 Less: current portion 3.3 0.1 Long-term debt, excluding current portion $ 3,367.1 $ 3,660.2 1 See Note 14 for information on the fair value measurement of our long-term debt. |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Cash paid for acquisitions | Details of cash paid for current and prior years' acquisitions are listed below. Nine months ended 2019 2018 Cost of investment: current-year acquisitions $ 0.6 $ 12.3 Cost of investment: prior-year acquisitions 15.3 30.6 Less: net cash acquired — (0.5 ) Total cost of investment 15.9 42.4 Operating payments 1 9.3 18.3 Total cash paid for acquisitions 2 $ 25.2 $ 60.7 1 Represents cash payments for amounts that have been recognized in operating expenses since the date of acquisition either relating to adjustments to estimates in excess of the initial value of contingent payments recorded or were contingent upon the future employment of the former owners of the acquired companies. Amounts are reflected in the operating section of the unaudited Consolidated Statements of Cash Flows. 2 Of the total cash paid for acquisitions, $0.6 and $12.0 for the nine months ended September 30, 2019 and 2018 , respectively, are classified under the investing section of the unaudited Consolidated Statements of Cash Flows, as acquisitions, net of cash acquired. These amounts relate to initial payments for new transactions. Of the total cash paid for acquisitions, $15.3 and $30.4 for the nine months ended September 30, 2019 and 2018 , respectively, are classified under the financing section of the unaudited Consolidated Statements of Cash Flows as acquisition-related payments. These amounts relate to deferred payments and increases in our ownership interest for prior acquisitions. |
Redeemable Noncontrolling Interest [Table Text Block] | The following table presents changes in our redeemable noncontrolling interests. Nine months ended 2019 2018 Balance at beginning of period $ 167.9 $ 252.1 Change in related noncontrolling interests balance (2.1 ) (15.5 ) Changes in redemption value of redeemable noncontrolling interests: Additions 24.3 0.0 Redemptions (3.1 ) (33.7 ) Redemption value adjustments (1.6 ) (43.2 ) Balance at end of period $ 185.4 $ 159.7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following sets forth basic and diluted earnings per common share available to IPG common stockholders. Three months ended Nine months ended 2019 2018 2019 2018 Net income available to IPG common stockholders $ 165.6 $ 161.0 $ 327.1 $ 292.7 Weighted-average number of common shares outstanding - basic 386.7 382.6 385.8 383.2 Dilutive effect of stock options and restricted shares 5.1 5.8 4.5 5.2 Weighted-average number of common shares outstanding - diluted 391.8 388.4 390.3 388.4 Earnings per share available to IPG common stockholders: Basic $ 0.43 $ 0.42 $ 0.85 $ 0.76 Diluted $ 0.42 $ 0.41 $ 0.84 $ 0.75 |
Supplementary Data (Tables)
Supplementary Data (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplementary Data [Abstract] | |
Accrued Liabilities | The following table presents the components of accrued liabilities. September 30, December 31, Salaries, benefits and related expenses $ 395.3 $ 494.9 Interest 59.1 43.6 Acquisition obligations 41.6 65.7 Office and related expenses 24.3 52.2 Restructuring charges 3.6 0.0 Other 110.4 150.5 Total accrued liabilities $ 634.3 $ 806.9 |
Other Income (Expense), Net | Results of operations for the three and nine months ended September 30, 2019 and 2018 include certain items that are not directly associated with our revenue-producing operations. Three months ended Nine months ended 2019 2018 2019 2018 Net losses on sales of businesses $ (7.7 ) $ (5.8 ) $ (19.5 ) $ (50.0 ) Other 0.3 (9.5 ) 1.4 (6.0 ) Total other expense, net $ (7.4 ) $ (15.3 ) $ (18.1 ) $ (56.0 ) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | In the first quarter of 2019 , the Company implemented a cost initiative (the "2019 Plan") to better align our cost structure with our revenue primarily related to specific client losses occurring in 2018, the components of which are listed below. Nine months ended Severance and termination costs $ 22.0 Lease restructuring costs 11.9 Total restructuring charges $ 33.9 |
Incentive Compensation Plans (T
Incentive Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Stock-based Compensation Awards | We issued the following stock-based awards under the 2014 PIP and 2019 PIP during the nine months ended September 30, 2019 . Awards Weighted-average grant-date fair value (per award) Restricted stock (shares or units) 2.5 $ 22.78 Performance-based stock (shares) 2.1 $ 20.16 Total stock-based compensation awards 4.6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Net of Tax (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss, Net of Tax The following tables present the changes in accumulated other comprehensive loss, net of tax, by component. Foreign Currency Translation Adjustments Derivative Instruments Defined Benefit Pension and Other Postretirement Plans Total Balance as of December 31, 2018 $ (716.4 ) $ (5.3 ) $ (219.4 ) $ (941.1 ) Other comprehensive (loss) income before reclassifications (37.2 ) 0.0 1.6 (35.6 ) Amount reclassified from accumulated other comprehensive loss, net of tax 5.2 1.4 3.9 10.5 Balance as of September 30, 2019 $ (748.4 ) $ (3.9 ) $ (213.9 ) $ (966.2 ) 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 before reclassifications (119.6 ) 0.0 (0.6 ) (120.2 ) Amount reclassified from accumulated other comprehensive loss, net of tax 16.7 1.2 4.8 22.7 Balance as of September 30, 2018 $ (688.2 ) $ (5.6 ) $ (231.5 ) $ (925.3 ) |
Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from accumulated other comprehensive loss, net of tax, for the three and nine months ended September 30, 2019 and 2018 are as follows: Three months ended Nine months ended Affected Line Item in the Consolidated Statements of Operations 2019 2018 2019 2018 Foreign currency translation adjustments $ (0.6 ) $ 3.3 $ 5.2 $ 16.7 Other expense, net Losses on derivative instruments 0.6 0.6 1.8 1.7 Interest expense Amortization of defined benefit pension and postretirement plan items 1.7 1.9 5.0 6.0 Other expense, net Tax effect (0.6 ) (0.6 ) (1.5 ) (1.7 ) Provision for income taxes Total amount reclassified from accumulated other comprehensive loss, net of tax $ 1.1 $ 5.2 $ 10.5 $ 22.7 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of Net Periodic Costs | The components of net periodic cost for the Domestic Pension Plan, the significant foreign pension plans and the domestic postretirement benefit plan are listed below. Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Three months ended September 30, 2019 2018 2019 2018 2019 2018 Service cost $ 0.0 $ 0.0 $ 1.2 $ 1.1 $ 0.0 $ 0.0 Interest cost 1.2 1.2 3.0 3.1 0.3 0.3 Expected return on plan assets (1.5 ) (1.7 ) (4.2 ) (4.5 ) 0.0 0.0 Settlements and curtailments 0.0 0.0 0.0 0.1 0.0 0.0 Amortization of: Prior service cost (credit) 0.0 0.0 0.0 0.0 0.0 0.0 Unrecognized actuarial losses 0.5 0.4 1.2 1.4 0.0 0.0 Net periodic cost $ 0.2 $ (0.1 ) $ 1.2 $ 1.2 $ 0.3 $ 0.3 Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Nine months ended September 30, 2019 2018 2019 2018 2019 2018 Service cost $ 0.0 $ 0.0 $ 3.5 $ 3.1 $ 0.0 $ 0.0 Interest cost 3.6 3.4 9.3 9.9 0.9 0.8 Expected return on plan assets (4.4 ) (5.0 ) (13.0 ) (14.2 ) 0.0 0.0 Settlements and curtailments 0.0 0.0 0.0 0.3 0.0 0.0 Amortization of: Prior service cost (credit) 0.0 0.0 0.1 0.1 (0.1 ) (0.1 ) Unrecognized actuarial losses 1.4 1.2 3.6 4.4 0.0 0.1 Net periodic cost $ 0.6 $ (0.4 ) $ 3.5 $ 3.6 $ 0.8 $ 0.8 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summarized financial information concerning reportable segments | Summarized financial information concerning our reportable segments is shown in the following table. Three months ended Nine months ended 2019 2018 2019 2018 Total revenue: IAN $ 1,903.9 $ 1,774.7 $ 5,744.7 $ 5,272.7 CMG 534.2 522.8 1,574.8 1,585.7 Total $ 2,438.1 $ 2,297.5 $ 7,319.5 $ 6,858.4 Net revenue: IAN $ 1,743.9 $ 1,580.5 $ 5,260.9 $ 4,690.9 CMG 317.5 315.2 931.2 927.0 Total $ 2,061.4 $ 1,895.7 $ 6,192.1 $ 5,617.9 Segment EBITA: IAN $ 261.2 $ 240.2 $ 637.4 $ 543.4 CMG 51.8 49.2 97.3 113.1 Corporate and other (11.0 ) (22.6 ) (75.4 ) (91.2 ) Total $ 302.0 $ 266.8 $ 659.3 $ 565.3 Amortization of acquired intangibles: IAN $ 20.6 $ 3.9 $ 61.3 $ 11.9 CMG 1.1 1.2 3.3 3.7 Corporate and other 0.0 0.0 0.0 0.0 Total $ 21.7 $ 5.1 $ 64.6 $ 15.6 Depreciation: IAN $ 41.3 $ 33.0 $ 128.8 $ 98.2 CMG 4.8 4.9 14.3 14.5 Corporate and other 1.2 1.0 5.4 5.7 Total $ 47.3 $ 38.9 $ 148.5 $ 118.4 Capital expenditures: IAN $ 44.5 $ 35.2 $ 106.9 $ 82.9 CMG 4.0 4.2 7.9 7.2 Corporate and other 5.2 4.8 19.0 15.6 Total $ 53.7 $ 44.2 $ 133.8 $ 105.7 September 30, December 31, Total assets 1 : IAN $ 13,998.5 $ 13,867.9 CMG 1,656.1 1,516.7 Corporate and other 343.0 235.7 Total $ 15,997.6 $ 15,620.3 1 Results for December 31, 2018 have been restated to conform to the current-period presentation. The following table presents the reconciliation of segment EBITA to Income before income taxes. Three months ended Nine months ended 2019 2018 2019 2018 IAN EBITA $ 261.2 $ 240.2 $ 637.4 $ 543.4 CMG EBITA 51.8 49.2 97.3 113.1 Corporate and other EBITA (11.0 ) (22.6 ) (75.4 ) (91.2 ) Less: consolidated amortization of acquired intangibles 21.7 5.1 64.6 15.6 Operating income 280.3 261.7 594.7 549.7 Total (expenses) and other income (47.6 ) (37.6 ) (144.2 ) (115.6 ) Income before income taxes $ 232.7 $ 224.1 $ 450.5 $ 434.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information about our financial instruments measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 , and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. September 30, 2019 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 132.4 $ 0.0 $ 0.0 $ 132.4 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 106.2 $ 106.2 Accrued liabilities and Other non-current liabilities December 31, 2018 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 132.1 $ 0.0 $ 0.0 $ 132.1 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 148.4 $ 148.4 Accrued liabilities and Other non-current liabilities 1 Contingent acquisition obligations includes deferred acquisition payments and unconditional obligations to purchase additional noncontrolling equity shares of consolidated subsidiaries. Fair value measurement of the obligations is based upon actual and projected operating performance targets as specified in the related agreements. The decrease in this balance of $42.2 from December 31, 2018 to September 30, 2019 is primarily due to payments and a reclassification from an arrangement during the second quarter of 2019. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following table presents information about our financial instruments that are not measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Total long-term debt $ 0.0 $ 3,595.2 $ 44.3 $ 3,639.5 $ 0.0 $ 3,605.6 $ 38.0 $ 3,643.6 |
Revenue Major Geographical Area
Revenue Major Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total revenues: | ||||
Total revenue | $ 2,438.1 | $ 2,297.5 | $ 7,319.5 | $ 6,858.4 |
Net revenue | 2,061.4 | 1,895.7 | 6,192.1 | 5,617.9 |
United States | ||||
Total revenues: | ||||
Total revenue | 1,550.9 | 1,407.1 | 4,681.1 | 4,203.5 |
Net revenue | 1,313 | 1,160.9 | 3,964.8 | 3,424.7 |
United Kingdom | ||||
Total revenues: | ||||
Total revenue | 201.9 | 220.9 | 617.9 | 626.9 |
Net revenue | 172.1 | 174 | 522.8 | 513.2 |
Continental Europe | ||||
Total revenues: | ||||
Total revenue | 177.6 | 177.5 | 565.8 | 564.3 |
Net revenue | 155.7 | 152 | 495.8 | 489.4 |
Asia Pacific | ||||
Total revenues: | ||||
Total revenue | 262.7 | 267.3 | 753.3 | 803 |
Net revenue | 205 | 210.6 | 588.1 | 603.6 |
Latin America | ||||
Total revenues: | ||||
Total revenue | 109.2 | 95.3 | 300.3 | 267.8 |
Net revenue | 97.8 | 84 | 270.2 | 239.9 |
Other | ||||
Total revenues: | ||||
Total revenue | 135.8 | 129.4 | 401.1 | 392.9 |
Net revenue | 117.8 | 114.2 | 350.4 | 347.1 |
International | ||||
Total revenues: | ||||
Total revenue | 887.2 | 890.4 | 2,638.4 | 2,654.9 |
Net revenue | 748.4 | 734.8 | 2,227.3 | 2,193.2 |
IAN | ||||
Total revenues: | ||||
Total revenue | 1,903.9 | 1,774.7 | 5,744.7 | 5,272.7 |
Net revenue | 1,743.9 | 1,580.5 | 5,260.9 | 4,690.9 |
IAN | United States | ||||
Total revenues: | ||||
Total revenue | 1,185.3 | 1,064.2 | 3,611.2 | 3,150.6 |
Net revenue | 1,103 | 952.9 | 3,354 | 2,814.2 |
IAN | International | ||||
Total revenues: | ||||
Total revenue | 718.6 | 710.5 | 2,133.5 | 2,122.1 |
Net revenue | 640.9 | 627.6 | 1,906.9 | 1,876.7 |
CMG | ||||
Total revenues: | ||||
Total revenue | 534.2 | 522.8 | 1,574.8 | 1,585.7 |
Net revenue | 317.5 | 315.2 | 931.2 | 927 |
CMG | United States | ||||
Total revenues: | ||||
Total revenue | 365.6 | 342.9 | 1,069.9 | 1,052.9 |
Net revenue | 210 | 208 | 610.8 | 610.5 |
CMG | International | ||||
Total revenues: | ||||
Total revenue | 168.6 | 179.9 | 504.9 | 532.8 |
Net revenue | $ 107.5 | $ 107.2 | $ 320.4 | $ 316.5 |
Revenue Contract Balances (Deta
Revenue Contract Balances (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts receivable, net of allowance of $38.8 and $42.5, respectively | $ 4,047.8 | $ 5,126.6 |
Accounts receivable, billable to clients | 2,018.7 | 1,900.6 |
Contract assets | 57.8 | 67.9 |
Contract liabilities (deferred revenue) | 562.4 | $ 533.9 |
Revenue, Remaining Performance Obligation, Amount | $ 759 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Minimum Remaining Lease Term | 1 year | ||
Remaining lease terms | 20 years | ||
Lessee, Operating Lease, Description [Abstract] | |||
Operating lease cost | $ 80.9 | $ 240.3 | |
Short-term lease cost | 3.1 | 13.1 | |
Sublease income | 3.8 | 8.6 | |
Total lease cost | $ 80.2 | 244.8 | |
Cash paid for amounts included in the measurement of lease liabilities | 247.2 | ||
Right-of-use assets obtained in exchange for lease liabilities | $ 359 | ||
Weighted-average remaining lease term | 8 years | 8 years | |
Weighted-average discount rate | 4.32% | 4.32% | |
Future Lease Payments [Abstract] | |||
2019 | $ 83.6 | $ 83.6 | |
2020 | 322.9 | 322.9 | |
2021 | 291.5 | 291.5 | |
2022 | 260.5 | 260.5 | |
2023 | 202.3 | 202.3 | |
Thereafter | 861.2 | 861.2 | |
Total future lease payments | 2,022 | 2,022 | |
Less: imputed interest | 326 | 326 | |
Present value of future lease payments | 1,696 | 1,696 | |
Less: current portion of operating leases | 261.6 | 261.6 | $ 0 |
Non-current operating leases | 1,434.4 | 1,434.4 | 0 |
Future Lease Payments as of Prior Year End [Abstract] | |||
Rent Obligations 2019 | 352 | ||
Sublease Rental Income 2019 | 7.7 | ||
Net Rent 2019 | 344.3 | ||
Rent Obligations 2020 | 324.3 | ||
Sublease Rental Income 2020 | 5.2 | ||
Net Rent 2020 | 319.1 | ||
Rent Obligations 2021 | 282.3 | ||
Sublease Rental Income 2021 | 2.2 | ||
Net Rent 2021 | 280.1 | ||
Rent Obligations 2022 | 242.5 | ||
Sublease Rental Income 2022 | 1.3 | ||
Net Rent 2022 | 241.2 | ||
Rent Obligations 2023 | 184 | ||
Sublease Rental Income 2023 | 0.6 | ||
Net Rent 2023 | 183.4 | ||
Rent Obligations Thereafter | 714.6 | ||
Sublease Rental Income Thereafter | 0.5 | ||
Net Rent Thereafter | 714.1 | ||
Rent Obligations | 2,099.7 | ||
Sublease Rental Income | 17.5 | ||
Net Rent | $ 2,082.2 | ||
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |||
Future lease payments for additional operating leases that have not yet commenced | $ 151 | $ 151 | |
Minimum Lease Term for Leases That Have Not Yet Commenced | 4 years | ||
Maximum Lease Term for Leases That Have Not Yet Commenced | 15 years |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 3,370.4 | $ 3,660.3 |
Long-term Debt, Current Maturities | 3.3 | 0.1 |
Long-term Debt, Excluding Current Maturities | 3,367.1 | 3,660.2 |
3.50% Notes Due 2020 (less unamortized discount and issuance costs of $0.5 and $1.5, respectively) | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500 | |
Maturity Date | Oct. 1, 2020 | |
Interest Rate Stated Percentage | 3.50% | |
Effective Interest Rate | 3.89% | |
Unamortized Discount | $ 0.5 | |
Issuance Cost | 1.5 | |
Long-term Debt, Gross | 498 | 496.6 |
Long-term Debt, Fair Value | 505.8 | 499.9 |
3.75% Notes Due 2021 (less unamortized discount and issuance costs of $0.3 and $2.1, respectively) | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500 | |
Maturity Date | Oct. 1, 2021 | |
Interest Rate Stated Percentage | 3.75% | |
Effective Interest Rate | 3.98% | |
Unamortized Discount | $ 0.3 | |
Issuance Cost | 2.1 | |
Long-term Debt, Gross | 497.6 | 496.8 |
Long-term Debt, Fair Value | 513.2 | 503.2 |
4.00% Notes Due 2022 (less unamortized discount and issuance costs of $0.8 and $0.6, respectively) | ||
Debt Instrument [Line Items] | ||
Par Value | $ 250 | |
Maturity Date | Mar. 15, 2022 | |
Interest Rate Stated Percentage | 4.00% | |
Effective Interest Rate | 4.13% | |
Unamortized Discount | $ 0.8 | |
Issuance Cost | 0.6 | |
Long-term Debt, Gross | 248.6 | 248.2 |
Long-term Debt, Fair Value | 258.6 | 250.3 |
3.75% Notes Due 2023 (less unamortized discount and issuance costs of $0.5 and $1.4, respectively) | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500 | |
Maturity Date | Feb. 15, 2023 | |
Interest Rate Stated Percentage | 3.75% | |
Effective Interest Rate | 4.32% | |
Unamortized Discount | $ 0.5 | |
Issuance Cost | 1.4 | |
Long-term Debt, Gross | 498.1 | 497.7 |
Long-term Debt, Fair Value | 523.6 | 491.4 |
4.20% Notes Due 2024 (less unamortized discount and issuance costs of $0.5 and $1.9, respectively) | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500 | |
Maturity Date | Apr. 15, 2024 | |
Interest Rate Stated Percentage | 4.20% | |
Effective Interest Rate | 4.24% | |
Unamortized Discount | $ 0.5 | |
Issuance Cost | 1.9 | |
Long-term Debt, Gross | 497.6 | 497.3 |
Long-term Debt, Fair Value | 535.9 | 492.6 |
4.65% Notes Due 2028 (less unamortized discount and issuance costs of $1.6 and $4.0, respectively) | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500 | |
Maturity Date | Oct. 1, 2028 | |
Interest Rate Stated Percentage | 4.65% | |
Effective Interest Rate | 4.78% | |
Unamortized Discount | $ 1.6 | |
Issuance Cost | 4 | |
Long-term Debt, Gross | 494.4 | 494 |
Long-term Debt, Fair Value | 561.4 | 494.1 |
5.40% Notes Due 2048 (less unamortized discount and issuance costs of $2.8 and $5.4, respectively) | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500 | |
Maturity Date | Oct. 1, 2048 | |
Interest Rate Stated Percentage | 5.40% | |
Effective Interest Rate | 5.48% | |
Unamortized Discount | $ 2.8 | |
Issuance Cost | 5.4 | |
Long-term Debt, Gross | 491.8 | 491.7 |
Long-term Debt, Fair Value | 596.7 | 474.1 |
Term Loan due 2021 - LIBOR plus 1.25% | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 100 | 400 |
Long-term Debt | 100 | |
Other notes payable and capitalized leases | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 44.3 | 38 |
Long-term Debt, Fair Value | $ 44.3 | $ 38 |
Credit Facilities (Details)
Credit Facilities (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Committed credit facility [Member] | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500 |
Line of Credit Facility, Available Capacity Increase Amount | 250 |
Line of Credit Facility, Limit on Letters of Credit | 50 |
Line of Credit Outstanding, Amount | 0 |
Letters of Credit Outstanding, Amount | 8.6 |
Line of Credit Facility, Remaining Borrowing Capacity | 1,491.4 |
Uncommitted credit facility [Member] | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,091.2 |
Line of Credit Outstanding, Amount | 64.8 |
Line of Credit Facility, Average Outstanding Amount | $ 106.6 |
Short-term Debt, Weighted Average Interest Rate, over Time | 5.30% |
Commercial Paper (Details)
Commercial Paper (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Debt Disclosure [Abstract] | |
Commercial paper borrowing capacity | $ 1,500 |
Debt Instrument, Term | 397 days |
Commercial Paper | $ 180 |
Average amount borrowed under commercial paper during the period | $ 349.5 |
Commercial paper weighted average interest rate over time | 2.50% |
Commercial paper weighted-average maturity days outstanding | 9 days |
Debt and Credit Arrangements Te
Debt and Credit Arrangements Term Loan Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Term Loan Agreement [Abstract] | ||
Repayments of Debt | $ 200 | $ 100 |
Acquisitions Cash Paid for Acqu
Acquisitions Cash Paid for Acquisitions (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Paid for Acquisitions [Abstract] | ||
Cost of investment: current-year acquisitions | $ 0.6 | $ 12.3 |
Cost of investment: prior-year acquisitions | 15.3 | 30.6 |
Less: net cash acquired | 0 | (0.5) |
Total cost of investment | 15.9 | 42.4 |
Operating payments | 9.3 | 18.3 |
Total cash paid for acquisitions | 25.2 | 60.7 |
Payments to Acquire Businesses, Net of Cash Acquired | 0.6 | 12 |
Payments for Previous Acquisition | $ 15.3 | $ 30.4 |
Acquisitions Redeemable Noncont
Acquisitions Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Redeemable Noncontrolling Interests | ||
Balance at beginning of period | $ 167.9 | $ 252.1 |
Change in related noncontrolling interests balance | (2.1) | (15.5) |
Changes in redemption value of redeemable noncontrolling interests: | ||
Additions | 24.3 | 0 |
Redemptions | (3.1) | (33.7) |
Redemption value adjustments | (1.6) | (43.2) |
Balance at end of period | $ 185.4 | $ 159.7 |
Acquisitions Goodwill and intan
Acquisitions Goodwill and intangible assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Goodwill and intangible assets [Abstract] | ||
Goodwill and intangible assets recorded related to acquisitions | $ 7.6 | $ 24 |
Acquisitions Number of Acquisit
Acquisitions Number of Acquisitions (Details) - business | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Number of acquisitions [Abstract] | ||
Number of Businesses Acquired | 1 | 3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income available to IPG common stockholders | $ 165.6 | $ 161 | $ 327.1 | $ 292.7 |
Weighted-average number of common shares outstanding, Basic | 386.7 | 382.6 | 385.8 | 383.2 |
Dilutive effect of stock options and restricted shares | 5.1 | 5.8 | 4.5 | 5.2 |
Weighted-average number of common shares outstanding, Diluted | 391.8 | 388.4 | 390.3 | 388.4 |
Loss per share, Basic | $ 0.43 | $ 0.42 | $ 0.85 | $ 0.76 |
Loss per share, Diluted | $ 0.42 | $ 0.41 | $ 0.84 | $ 0.75 |
Supplementary Data Accrued Liab
Supplementary Data Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accrued Liabilities [Abstract] | ||
Salaries, benefits and related expenses | $ 395.3 | $ 494.9 |
Acquisition obligations | 41.6 | 65.7 |
Interest | 59.1 | 43.6 |
Office and related expenses | 24.3 | 52.2 |
Restructuring charges | 3.6 | 0 |
Other | 110.4 | 150.5 |
Total accrued liabilities | $ 634.3 | $ 806.9 |
Supplementary Data Other (Expen
Supplementary Data Other (Expense) Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Net losses on sales of businesses | $ (7.7) | $ (5.8) | $ (19.5) | $ (50) |
Other Nonoperating Income | 0.3 | (9.5) | 1.4 | (6) |
Total other expense, net | $ (7.4) | $ (15.3) | $ (18.1) | $ (56) |
Supplementary Data Share Repurc
Supplementary Data Share Repurchase Program (Details) $ in Millions | Sep. 30, 2019USD ($) |
Disclosure of Repurchase Agreements [Abstract] | |
Stock repurchase program, remaining authorized repurchase amount, excluding fees | $ 338.4 |
Income Taxes Change in Unrecogn
Income Taxes Change in Unrecognized Tax Benefits (Details) $ in Millions | Sep. 30, 2019USD ($) |
Minimum [Member] | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Decrease in unrecognized tax benefits is reasonably possible | $ 10 |
Maximum [Member] | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Decrease in unrecognized tax benefits is reasonably possible | $ 20 |
Restructuring Charges (Details)
Restructuring Charges (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Restructuring and Related Cost, Number of Positions Eliminated | 627 | ||||
Severance and termination costs | $ 22 | ||||
Lease impairment cost | 11.9 | ||||
Restructuring charges | $ 0 | $ 0 | 33.9 | $ 0 | |
Payments for Restructuring | (18.4) | ||||
Restructuring Reserve | $ 3.6 | 3.6 | $ 0 | ||
IAN [Member] | |||||
Restructuring charges | 27.6 | ||||
CMG [Member] | |||||
Restructuring charges | $ 5.6 |
Incentive Compensation Plans St
Incentive Compensation Plans Stock-based Compensation Awards (Details) shares in Millions | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Restricted stock (shares or units) | |
Incentive Compensation Plans | |
Granted awards | 2.5 |
Weighted average grant date fair value | $ / shares | $ 22.78 |
Performance-based stock (shares) | |
Incentive Compensation Plans | |
Granted awards | 2.1 |
Weighted average grant date fair value | $ / shares | $ 20.16 |
Total stock-based compensation awards | |
Incentive Compensation Plans | |
Granted awards | 4.6 |
Incentive Compensation Plans Pl
Incentive Compensation Plans Plan Information (Details) shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)shares | |
Share-based Payment Arrangement [Abstract] | |
Common stock initially available for grants of all equity awards under the 2019 PIP | shares | 27 |
Number of shares that may be awarded to any one participant for any stock based awards in the aggregate | shares | 2 |
2019 PIP target performance cash award percentage range | range from 0% to 300% of the target amount |
Upper limit of 2019 PIP cash awards granted during a performance period per individual | $ 10 |
Performance cash awards granted during the period target value | 40.6 |
Restricted cash awards granted during the period target value | $ 20.3 |
Cash awards vesting period | 3 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign currency translation adjustment: | ||||
Balance at beginning of period | $ (716.4) | $ (585.3) | ||
Other comprehensive (loss) income before reclassifications | (37.2) | (119.6) | ||
Amount reclassified from accumulated other comprehensive loss, net of tax | 5.2 | 16.7 | ||
Balance at end of period | (748.4) | (688.2) | ||
Derivative Instrument: | ||||
Balance at beginning of period | (3.9) | (5.6) | $ (5.3) | $ (6.8) |
Other comprehensive (loss) income before reclassifications, related to Derivative Instruments | 0 | 0 | ||
Amount reclassified from accumulated other comprehensive loss, net of tax, related to Derivative Instruments | 1.4 | 1.2 | ||
Defined Benefit Pension and Other Postretirement Plans | ||||
Balance at beginning of period | (219.4) | (235.7) | ||
Other comprehensive (loss) income before reclassifications | 1.6 | (0.6) | ||
Amount reclassified from accumulated other comprehensive loss, net of tax | 3.9 | 4.8 | ||
Balance at end of period | (213.9) | (231.5) | ||
Total: | ||||
Balance at beginning of period | (941.1) | (827.8) | ||
Other comprehensive (loss) income before reclassifications | (35.6) | (120.2) | ||
Amount reclassified from accumulated other comprehensive loss, net of tax | 10.5 | 22.7 | ||
Balance at end of period | $ (966.2) | $ (925.3) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss, Net of Tax Reclassification of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Foreign currency translation adjustments | $ (0.6) | $ 3.3 | $ 5.2 | $ 16.7 |
Losses on derivative instruments | 0.6 | 0.6 | 1.8 | 1.7 |
Amortization of defined benefit pension and postretirement plan items | 1.7 | 1.9 | 5 | 6 |
Tax effect | (0.6) | (0.6) | (1.5) | (1.7) |
Reclassifications from accumulated other comprehensive loss to earnings, net of tax | $ 1.1 | $ 5.2 | $ 10.5 | $ 22.7 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Domestic Plan [Member] | ||||
Defined Pension and Postretirement Benefit Plans | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 1.2 | 1.2 | 3.6 | 3.4 |
Expected return on plan assets | (1.5) | (1.7) | (4.4) | (5) |
Settlement and curtailments | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Prior Service Cost (Credit) | 0 | 0 | 0 | 0 |
Unrecognized actuarial losses | 0.5 | 0.4 | 1.4 | 1.2 |
Net periodic cost | 0.2 | (0.1) | 0.6 | (0.4) |
Pension plan - employer contributions | 1.9 | |||
Pension plan - estimated employer contributions for remainder of current fiscal year | 1 | 1 | ||
Foreign Plan [Member] | ||||
Defined Pension and Postretirement Benefit Plans | ||||
Service cost | 1.2 | 1.1 | 3.5 | 3.1 |
Interest cost | 3 | 3.1 | 9.3 | 9.9 |
Expected return on plan assets | (4.2) | (4.5) | (13) | (14.2) |
Settlement and curtailments | 0 | 0.1 | 0 | 0.3 |
Amortization of: | ||||
Prior Service Cost (Credit) | 0 | 0 | 0.1 | 0.1 |
Unrecognized actuarial losses | 1.2 | 1.4 | 3.6 | 4.4 |
Net periodic cost | 1.2 | 1.2 | 3.5 | 3.6 |
Pension plan - employer contributions | 13.1 | |||
Pension plan - estimated employer contributions for remainder of current fiscal year | 4 | 4 | ||
Domestic Postretirement Benefit Plan | ||||
Defined Pension and Postretirement Benefit Plans | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0.3 | 0.3 | 0.9 | 0.8 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Settlement and curtailments | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Prior Service Cost (Credit) | 0 | 0 | (0.1) | (0.1) |
Unrecognized actuarial losses | 0 | 0 | 0 | 0.1 |
Net periodic cost | $ 0.3 | $ 0.3 | $ 0.8 | $ 0.8 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segments: | |||||
Total revenue | $ 2,438.1 | $ 2,297.5 | $ 7,319.5 | $ 6,858.4 | |
Net revenue | 2,061.4 | 1,895.7 | 6,192.1 | 5,617.9 | |
Segment EBITA | 302 | 266.8 | 659.3 | 565.3 | |
Amortization of acquired intangibles | (21.7) | (5.1) | (64.6) | (15.6) | |
Depreciation | 47.3 | 38.9 | 148.5 | 118.4 | |
Capital expenditures | 53.7 | 44.2 | 133.8 | 105.7 | |
Total assets | 15,997.6 | 15,997.6 | $ 15,620.3 | ||
Operating income | 280.3 | 261.7 | 594.7 | 549.7 | |
Total (expenses) and other income | (47.6) | (37.6) | (144.2) | (115.6) | |
Income before income taxes | 232.7 | 224.1 | 450.5 | 434.1 | |
IAN | |||||
Segments: | |||||
Total revenue | 1,903.9 | 1,774.7 | 5,744.7 | 5,272.7 | |
Net revenue | 1,743.9 | 1,580.5 | 5,260.9 | 4,690.9 | |
Segment EBITA | 261.2 | 240.2 | 637.4 | 543.4 | |
Amortization of acquired intangibles | (20.6) | (3.9) | (61.3) | (11.9) | |
Depreciation | 41.3 | 33 | 128.8 | 98.2 | |
Capital expenditures | 44.5 | 35.2 | 106.9 | 82.9 | |
Total assets | 13,998.5 | 13,998.5 | 13,867.9 | ||
CMG | |||||
Segments: | |||||
Total revenue | 534.2 | 522.8 | 1,574.8 | 1,585.7 | |
Net revenue | 317.5 | 315.2 | 931.2 | 927 | |
Segment EBITA | 51.8 | 49.2 | 97.3 | 113.1 | |
Amortization of acquired intangibles | (1.1) | (1.2) | (3.3) | (3.7) | |
Depreciation | 4.8 | 4.9 | 14.3 | 14.5 | |
Capital expenditures | 4 | 4.2 | 7.9 | 7.2 | |
Total assets | 1,656.1 | 1,656.1 | 1,516.7 | ||
Corporate and Other | |||||
Segments: | |||||
Segment EBITA | (11) | (22.6) | (75.4) | (91.2) | |
Amortization of acquired intangibles | 0 | 0 | 0 | 0 | |
Depreciation | 1.2 | 1 | 5.4 | 5.7 | |
Capital expenditures | 5.2 | $ 4.8 | 19 | $ 15.6 | |
Total assets | $ 343 | $ 343 | $ 235.7 |
Fair Value on a Recurring and N
Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | ||
Fair value assets and liabilities measured on recurring and nonrecurring basis | |||
Contingent acquisition liability, total change | $ (42.2) | ||
Level 1 | |||
Fair value assets and liabilities measured on recurring and nonrecurring basis | |||
Cash equivalents | 132.4 | $ 132.1 | |
Contingent acquisition obligations | [1] | 0 | 0 |
Long-term Debt, Fair Value | 0 | 0 | |
Level 2 | |||
Fair value assets and liabilities measured on recurring and nonrecurring basis | |||
Cash equivalents | 0 | 0 | |
Contingent acquisition obligations | [1] | 0 | 0 |
Long-term Debt, Fair Value | 3,595.2 | 3,605.6 | |
Level 3 | |||
Fair value assets and liabilities measured on recurring and nonrecurring basis | |||
Cash equivalents | 0 | 0 | |
Contingent acquisition obligations | [1] | 106.2 | 148.4 |
Long-term Debt, Fair Value | 44.3 | 38 | |
Fair Value, Total [Member] | |||
Fair value assets and liabilities measured on recurring and nonrecurring basis | |||
Cash equivalents | 132.4 | 132.1 | |
Contingent acquisition obligations | [1] | 106.2 | 148.4 |
Long-term Debt, Fair Value | $ 3,639.5 | $ 3,643.6 | |
[1] | Contingent acquisition obligations includes deferred acquisition payments and unconditional obligations to purchase additional noncontrolling equity shares of consolidated subsidiaries. Fair value measurement of the obligations is based upon actual and projected operating performance targets as specified in the related agreements. The decrease in this balance of $42.2 from December 31, 2018 to September 30, 2019 is primarily due to payments and a reclassification from an arrangement during the second quarter of 2019. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease guarantees | $ 764.5 | $ 824.5 |
Credit facility guarantees | 310.2 | 349.1 |
Cash pooling guarantees | $ 199 | $ 207.8 |