Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 15, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 $0.10 per share | |
Trading Symbol | IPG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000051644 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 393,375,648 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUE: | ||
Net revenue | $ 2,027,700,000 | $ 1,972,100,000 |
Billable expenses | 229,300,000 | 387,700,000 |
Total revenue | 2,257,000,000 | 2,359,800,000 |
OPERATING EXPENSES: | ||
Salaries and related expenses | 1,393,100,000 | 1,422,800,000 |
Office and other direct expenses | 292,900,000 | 378,200,000 |
Billable expenses | 229,300,000 | 387,700,000 |
Cost of services | 1,915,300,000 | 2,188,700,000 |
Selling, general and administrative expenses | 28,200,000 | 22,400,000 |
Depreciation and amortization | 69,200,000 | 72,800,000 |
Restructuring charges | 1,300,000 | 0 |
Total operating expenses | 2,014,000,000 | 2,283,900,000 |
OPERATING INCOME | 243,000,000 | 75,900,000 |
EXPENSES AND OTHER INCOME: | ||
Interest expense | (49,600,000) | (44,800,000) |
Interest income | 6,900,000 | 10,700,000 |
Other Nonoperating Income (Expense) | (83,900,000) | (21,800,000) |
Total (expenses) and other income | (126,600,000) | (55,900,000) |
Income before income taxes | 116,400,000 | 20,000,000 |
Provision for income taxes | 23,800,000 | 17,200,000 |
Income of consolidated companies | 92,600,000 | 2,800,000 |
Equity in net income (loss) of unconsolidated affiliates | (200,000) | (200,000) |
NET INCOME | 92,400,000 | 2,600,000 |
Net income attributable to noncontrolling interests | (700,000) | 2,100,000 |
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ 91,700,000 | $ 4,700,000 |
Earnings per share, Basic | $ 0.23 | $ 0.01 |
Earnings per share, Diluted | $ 0.23 | $ 0.01 |
Weighted-average number of common shares outstanding, Basic | 391.5 | 387.7 |
Weighted-average number of common shares outstanding, Diluted | 396 | 391.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 92.4 | $ 2.6 |
Foreign currency translation: | ||
Foreign currency translation adjustments | (41) | (147.6) |
Reclassification adjustments recognized in net income | 0.7 | (3.6) |
Foreign currency transaction and translation adjustment, net of tax | (40.3) | (151.2) |
Derivative Instrument: | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 21.3 | (0.4) |
Recognition of previously unrealized losses in net income | 5.2 | 0.6 |
Income tax effect | (4.2) | (0.1) |
Net unrecognized gains on derivative instruments, net of tax | 22.3 | 0.1 |
Defined benefit pension and other postretirement plans: | ||
Amortization of unrecognized losses, transition obligation and prior service cost included in net income | 2.3 | 1.9 |
Other | (0.1) | (1.3) |
Income tax effect | (0.4) | (0.3) |
Defined benefit pension and other postretirement plans adjustment, net of tax | 1.8 | 0.3 |
Other comprehensive income (loss), net of tax | (16.2) | (150.8) |
TOTAL COMPREHENSIVE INCOME | 76.2 | (148.2) |
Less: comprehensive (loss) income attributable to noncontrolling interests | 0.6 | (4.2) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO IPG | $ 75.6 | $ (144) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS: | ||
Cash and cash equivalents | $ 2,015.3 | $ 2,509 |
Accounts receivable, net of allowance of $92.6 and $98.3, respectively | 3,440.3 | 4,646.4 |
Accounts receivable, billable to clients | 1,842.7 | 1,820.7 |
Assets held for sale | 4.5 | 0.8 |
Other current assets | 467.4 | 390.7 |
Total current assets | 7,770.2 | 9,367.6 |
Property and equipment, net of accumulated depreciation and amortization of $1,162.7 and $1,133.9, respectively | 667 | 690.3 |
Deferred Income Tax Assets, Net | 295.6 | 302 |
Goodwill | 4,934.3 | 4,945.5 |
Other intangible assets | 913.6 | 933.6 |
Operating lease right-of-use asset | 1,361.2 | 1,379.3 |
Other non-current assets | 407.8 | 424.4 |
TOTAL ASSETS | 16,349.7 | 18,042.7 |
LIABILITIES: | ||
Accounts payable | 5,862 | 7,269.7 |
Accrued liabilities | 608.9 | 832.4 |
Contract liabilities | 689.1 | 657.8 |
Short-term borrowings | 43.1 | 48 |
Current portion of long-term debt | 502.8 | 502.5 |
Current portion of operating leases | 268.8 | 268.5 |
Liabilities held for sale | 9.8 | 1.6 |
Total current liabilities | 7,984.5 | 9,580.5 |
Long-term debt | 2,906.9 | 2,915.8 |
Non-current operating leases | 1,414.2 | 1,441 |
Deferred compensation | 377 | 413.2 |
Other non-current liabilities | 660.3 | 655.2 |
TOTAL LIABILITIES | 13,342.9 | 15,005.7 |
Redeemable noncontrolling interests | 85.2 | 93.1 |
STOCKHOLDERS' EQUITY: | ||
Common stock | 39.3 | 39 |
Additional paid-in capital | 1,107.9 | 1,099.3 |
Retained earnings | 2,623.1 | 2,636.9 |
Accumulated other comprehensive loss, net of tax | (896.3) | (880.2) |
Total IPG stockholders' equity | 2,874 | 2,895 |
Noncontrolling interests | 47.6 | 48.9 |
TOTAL STOCKHOLDERS' EQUITY | 2,921.6 | 2,943.9 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 16,349.7 | 18,042.7 |
Parentheticals: | ||
Allowance for doubtful accounts receivable | 92.6 | 98.3 |
Accumulated depreciation, property and equipment | $ 1,162.7 | $ 1,133.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 92,400,000 | $ 2,600,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 69,200,000 | 72,800,000 |
Loss on Extinguishment of Debt | 74,000,000 | 0 |
Amortization of restricted stock and other non-cash compensation | 20,300,000 | 23,200,000 |
Deferred income tax | 18,200,000 | (11,200,000) |
Net losses on sales of businesses | 12,500,000 | 23,300,000 |
Net amortization of bond discounts and deferred financing costs | 2,700,000 | 2,300,000 |
(Reversal of) Provision for uncollectible receivables | (2,200,000) | 22,600,000 |
Other | 4,600,000 | 1,200,000 |
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash: | ||
Accounts receivable | 1,158,600,000 | 1,343,500,000 |
Accounts receivable, billable to clients | 40,800,000 | 40,700,000 |
Other current assets | (68,800,000) | (57,500,000) |
Accounts payable | (1,347,000,000) | (1,466,900,000) |
Accrued liabilities | (233,600,000) | (158,800,000) |
Contract liabilities | 34,700,000 | 8,800,000 |
Other non-current assets and liabilities | (44,600,000) | (42,300,000) |
Net cash used in operating activities | (249,800,000) | (277,100,000) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (28,300,000) | (44,600,000) |
Acquisitions, net of cash acquired | 0 | (1,300,000) |
Net proceeds from investments | (28,800,000) | (1,800,000) |
Other investing activities | (300,000) | (16,700,000) |
Net cash provided by (used in) investing activities | 200,000 | (60,800,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Early extinguishment of long-term debt | (1,066,800,000) | 0 |
Common stock dividends | (109,100,000) | (100,000,000) |
Tax payments for employee shares withheld | (22,400,000) | (19,100,000) |
Acquisition-related payments | (3,400,000) | (18,600,000) |
Distributions to noncontrolling interests | (3,300,000) | (5,600,000) |
Net (decrease) increase in short-term borrowings | (2,900,000) | 247,800,000 |
Proceeds from Issuance of Long-term Debt | 998,100,000 | 646,200,000 |
Exercise of stock options | 8,000,000 | 0 |
Other financing activities | (10,900,000) | (6,300,000) |
Net cash (used in) provided by financing activities | (212,700,000) | 744,400,000 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (30,400,000) | (46,700,000) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (492,700,000) | 359,800,000 |
Cash, cash equivalents, and restricted cash at beginning of period | 2,511,500,000 | 1,195,700,000 |
Cash, cash equivalents, and restricted cash at end of period | $ 2,018,800,000 | $ 1,555,500,000 |
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 | Total IPG Stockholders' Equity | Noncontrolling Interests |
Common Stock, shares | 387 | |||||||
Changes related to lease standard update | $ (6.6) | $ (6.6) | $ (6.6) | |||||
Balance at Dec. 31, 2019 | 2,825.6 | $ 38.7 | $ 977.3 | 2,689.9 | $ (930) | 2,775.9 | $ 49.7 | |
Net income | 2.6 | |||||||
Net income available to IPG common stockholders | 4.7 | 4.7 | 4.7 | |||||
Net income attributable to noncontrolling interest | (2.1) | (2.1) | ||||||
Other comprehensive income (loss) | (150.8) | (148.7) | (148.7) | |||||
Other comprehensive loss, attributable to noncontrolling interest | (2.1) | |||||||
Reclassifications related to redeemable noncontrolling interests | (2.8) | (2.8) | ||||||
Distributions to noncontrolling interests | (5.6) | 5.6 | ||||||
Change in redemption value of redeemable noncontrolling interests | 3.1 | 3.1 | 3.1 | |||||
Common stock dividends | (100) | (100) | (100) | |||||
Stock-based compensation, shares | 3.4 | |||||||
Stock-based compensation, value | 25.4 | 0.3 | 25.1 | 25.4 | ||||
Exercise of stock options, shares | 0 | |||||||
Exercise of stock options, value | 0.2 | 0 | 0.2 | 0.2 | ||||
Shares withheld for taxes, shares | (0.9) | |||||||
Shares withheld for taxes, value | (21.5) | 0.1 | 21.4 | 21.5 | ||||
Balance at Mar. 31, 2020 | 2,575.2 | 38.9 | 981.2 | 2,591.1 | (1,078.7) | 2,532.5 | 42.7 | |
Common Stock, shares | 389.5 | |||||||
Common Stock, shares | 390.9 | |||||||
Balance at Dec. 31, 2020 | 2,943.9 | 39 | 1,099.3 | 2,636.9 | (880.2) | 2,895 | 48.9 | |
Net income | 92.4 | |||||||
Net income available to IPG common stockholders | 91.7 | 91.7 | 91.7 | |||||
Net income attributable to noncontrolling interest | 0.7 | 0.7 | ||||||
Other comprehensive income (loss) | (16.2) | (16.1) | (16.1) | |||||
Other comprehensive loss, attributable to noncontrolling interest | (0.1) | |||||||
Reclassifications related to redeemable noncontrolling interests | (1) | (1) | ||||||
Distributions to noncontrolling interests | (3.3) | 3.3 | ||||||
Change in redemption value of redeemable noncontrolling interests | 1 | 1 | 1 | |||||
Common stock dividends | (106.5) | (106.5) | (106.5) | |||||
Stock-based compensation, shares | 2.6 | |||||||
Stock-based compensation, value | 23.7 | 0.3 | 23.4 | 23.7 | ||||
Exercise of stock options, shares | 0.6 | |||||||
Exercise of stock options, value | 8.3 | 0.1 | 8.2 | 8.3 | ||||
Shares withheld for taxes, shares | (0.9) | |||||||
Shares withheld for taxes, value | (23.1) | 0.1 | 23 | 23.1 | ||||
Other | (0.4) | (0.4) | ||||||
Balance at Mar. 31, 2021 | $ 2,921.6 | $ 39.3 | $ 1,107.9 | $ 2,623.1 | $ (896.3) | $ 2,874 | $ 47.6 | |
Common Stock, shares | 393.2 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited Consolidated Financial Statements have been prepared by The Interpublic Group of Companies, Inc. and its subsidiaries (the “Company,” “IPG,” “we,” “us” or “our”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting interim financial information on Form 10-Q. Accordingly, they do not include certain information and disclosures required for complete financial statements. The effects of the novel coronavirus ("COVID-19") pandemic have impacted and will likely continue to impact our results of operations, cash flows and financial position. The Company’s Consolidated Financial Statements presented herein reflect the latest estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. The Company believes it has used reasonable estimates and assumptions to assess the fair values of goodwill, long-lived assets and indefinite-lived intangible assets; assessment of the annual effective tax rate; valuation of deferred income taxes and allowance for expected credit losses on future uncollectible accounts receivable. Actual results 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 Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”). Cost of services is comprised of the expenses of our revenue-producing reportable segments, Integrated Agency Networks (“IAN”) and IPG DXTRA (“DXTRA”), including salaries and related expenses, office and other direct expenses and billable expenses, and includes an allocation of the centrally managed expenses from Corporate and other. Office and other direct expenses include rent expense, professional fees, certain expenses incurred by our staff in servicing our clients and other costs directly attributable to client engagements. Selling, general and administrative expenses are primarily the unallocated expenses from Corporate and other, excluding depreciation and amortization. Depreciation and amortization of fixed assets and intangible assets of the Company is disclosed as a separate operating expense. Restructuring charges in 2021 consist of adjustments to the Company's restructuring actions taken during 2020 to lower our operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business, as discussed further in Note 7. Restructuring charges mainly include severance and termination costs and lease impairment costs. 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 changes have been made to prior-period financial statements to conform to the current-period presentation. |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue We have two reportable segments as of March 31, 2021: IAN and DXTRA, as further discussed in Note 11. IAN principally generates revenue from providing advertising and media services as well as a comprehensive array of global communications, marketing services and data management. DXTRA generates revenue from a comprehensive array of global public relations and communication services as well as providing events, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. Our agencies are located in over 100 countries, including every significant world market. Our geographic revenue breakdown is listed below. Three months ended Total revenue: 2021 2020 United States $ 1,425.8 $ 1,569.6 International: United Kingdom 203.5 197.1 Continental Europe 195.6 169.8 Asia Pacific 210.9 211.4 Latin America 83.6 86.8 Other 137.6 125.1 Total International 831.2 790.2 Total Consolidated $ 2,257.0 $ 2,359.8 Three months ended Net revenue: 2021 2020 United States $ 1,309.8 $ 1,320.0 International: United Kingdom 184.0 165.7 Continental Europe 175.8 146.0 Asia Pacific 169.1 158.8 Latin America 75.4 79.3 Other 113.6 102.3 Total International 717.9 652.1 Total Consolidated $ 2,027.7 $ 1,972.1 IAN Three months ended Total revenue: 2021 2020 United States $ 1,157.9 $ 1,193.3 International 693.5 625.5 Total IAN $ 1,851.4 $ 1,818.8 Net revenue: United States $ 1,113.5 $ 1,111.9 International 620.6 552.6 Total IAN $ 1,734.1 $ 1,664.5 DXTRA Three months ended Total revenue: 2021 2020 United States $ 267.9 $ 376.3 International 137.7 164.7 Total DXTRA $ 405.6 $ 541.0 Net revenue: United States $ 196.3 $ 208.1 International 97.3 99.5 Total DXTRA $ 293.6 $ 307.6 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. March 31, December 31, Accounts receivable, net of allowance of $92.6 and $98.3, respectively $ 3,440.3 $ 4,646.4 Accounts receivable, billable to clients 1,842.7 1,820.7 Contract assets 43.1 51.8 Contract liabilities (deferred revenue) 689.1 657.8 Contract assets are primarily comprised of contract incentives that are generally satisfied annually under the terms of our contracts and are transferred to accounts receivable when the right to payment becomes unconditional. Contract liabilities relate to advance consideration received from customers under the terms of our contracts primarily related to reimbursements of third-party expenses, whether we act as principal or agent, and to a lesser extent, periodic retainer fees, both of which are generally recognized shortly after billing. The majority of our contracts are for periods of one year or less with the exception of our data management contracts. For those contracts with a term of more than one year, we had approximately $643.0 of unsatisfied performance obligations as of March 31, 2021, which will be recognized as services are performed over the remaining contractual terms through 2027. |
Debt and Credit Arrangements (N
Debt and Credit Arrangements (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Credit Arrangements | Debt and Credit Arrangements Long-Term Debt A summary of the carrying amounts of our long-term debt is listed below. Effective March 31, December 31, 3.750% Senior Notes due 2021 (less unamortized discount and issuance costs of $0.1 and $0.5, respectively) 3.980% $ 499.4 $ 499.1 4.000% Senior Notes due 2022 4.130% — 249.3 3.750% Senior Notes due 2023 4.320% — 498.8 4.200% Senior Notes due 2024 (less unamortized discount and issuance costs of $0.2 and $0.6, respectively) 4.240% 249.2 498.3 4.650% Senior Notes due 2028 (less unamortized discount and issuance costs of $1.3 and $3.4, respectively) 4.780% 495.3 495.2 4.750% Senior Notes due 2030 (less unamortized discount and issuance costs of $3.5 and $5.5, respectively) 4.920% 641.0 640.8 2.400% Senior Notes due 2031 (less unamortized discount and issuance costs of $0.8 and $4.7, respectively) 2.512% 494.5 — 3.375% Senior Notes due 2041 (less unamortized discount and issuance costs of $1.1 and $5.8, respectively) 3.448% 493.1 — 5.400% Senior Notes due 2048 (less unamortized discount and issuance costs of $2.7 and $5.1, respectively) 5.480% 492.2 492.1 Other notes payable and capitalized leases 45.0 44.7 Total long-term debt 3,409.7 3,418.3 Less: current portion 502.8 502.5 Long-term debt, excluding current portion $ 2,906.9 $ 2,915.8 As of March 31, 2021 and December 31, 2020, the estimated fair value of the Company's long-term debt was $3,739.9 and $3,995.0, respectively. Refer to Note 12 for details. Debt Transactions 2.400% Senior Notes due 2031 On February 25, 2021, we issued a total of $500.0 in aggregate principal amount of 2.400% unsecured senior notes (the “2.400% Senior Notes”) due March 1, 2031. Upon issuance, the 2.400% Senior Notes were reflected in our unaudited Consolidated Balance Sheets at $494.5, net of discount of $0.8 and net of capitalized debt issuance costs, including commissions and offering expenses of $4.7, both of which will be amortized in interest expense through the maturity date using the effective interest method. Interest is payable semi-annually in arrears on March 1st and September 1st of each year, commencing on September 1, 2021. 3.375% Senior Notes due 2041 On February 25, 2021, we issued a total of $500.0 in aggregate principal amount of 3.375% unsecured senior notes (the “3.375% Senior Notes”) due March 1, 2041. Upon issuance, the 3.375% Senior Notes were reflected in our unaudited Consolidated Balance Sheets at $493.1, net of discount of $1.1 and net of capitalized debt issuance costs, including commissions and offering expenses of $5.8, both of which will be amortized in interest expense through the maturity date using the effective interest method. Interest is payable semi-annually in arrears on March 1st and September 1st of each year, commencing on September 1, 2021. Consistent with our other outstanding debt securities, the newly issued 2.400% and 3.375% Senior Notes include covenants that, among other things, limit our liens and the liens of certain of our consolidated subsidiaries, but do not require us to maintain any financial ratios or specified levels of net worth or liquidity. We may redeem the 2.400% and 3.375% Senior Notes at any time in whole, or from time to time in part, in accordance with the provisions of the indenture, including the applicable supplemental indentures, which contain make-whole provisions, under which the 2.400% and 3.375% Senior Notes were issued. Additionally, upon the occurrence of a change of control repurchase event with respect to the 2.400% and 3.375% Senior Notes, each holder of the 2.400% and 3.375% Senior Notes has the right to require the Company to purchase that holder’s 2.400% and 3.375% Senior Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, unless the Company has exercised its option to redeem all the 2.400% and 3.375% Senior Notes. The proceeds of the 2.400% and 3.375% Senior Notes were used in funding the early extinguishment of certain of our Senior Notes. 4.000% Senior Notes due 2022 In March 2021, we redeemed all $250.0 in aggregate principal amount of the 4.000% unsecured senior notes due 2022 (the "4.000% Senior Notes"). Total cash paid to redeem the 4.000% Senior Notes was $258.9. In connection with the redemption of the 4.000% Senior Notes, we recognized a loss on early extinguishment of debt of $9.2, which included a redemption premium of $8.6 and the write-off of the remaining unamortized discount and debt issuance costs of $0.6. The loss on early extinguishment of debt was recorded in O ther expense, net within our unaudited Consolidated Statement of Operations. 3.750% Senior Notes due 2023 In March 2021, we redeemed all $500.0 in aggregate principal amount of the 3.750% unsecured senior notes due 2023 (the "3.750% Senior Notes"). Total cash paid to redeem the 3.750% Senior Notes was $532.9. In connection with the redemption of the 3.750% Senior Notes, we recognized a loss on early extinguishment of debt of $36.5, which included a redemption premium of $30.7, the write-off of the remaining unamortized discount and debt issuance costs of $1.1 and a related deferred loss in other comprehensive income of $4.7. The loss on early extinguishment of debt was recorded in O ther expense, net within our unaudited Consolidated Statement of Operations. 4.200% Senior Notes due 2024 In March 2021, we redeemed $250.0 of the $500.0 in aggregate principal amount of the 4.200% unsecured senior notes due 2024 (the "4.200% Senior Notes"). Total cash paid to redeem the 4.200% Senior Notes was $282.2. In connection with the redemption of the 4.200% Senior Notes, we recognized a loss on early extinguishment of debt of $28.3, which included a redemption premium of $27.5, and the write-off of half of the remaining unamortized discount and unamortized debt issuance costs of $0.8. The loss on early extinguishment of debt was recorded in O ther expense, net within our unaudited Consolidated Statement of Operations. Credit Arrangements Credit Agreement We maintain a committed corporate credit facility, originally dated as of July 18, 2008, which has been amended and restated from time to time (the "Credit Agreement"). We use our Credit Agreement to increase our financial flexibility, to provide letters of credit primarily to support obligations of our subsidiaries and to support our commercial paper program. The Credit Agreement is a revolving facility, expiring in November 2024, under which amounts borrowed by us or any of our subsidiaries designated under the Credit Agreement may be repaid and reborrowed, subject to an aggregate lending limit of $1,500.0, or the equivalent in other currencies. The Company has the ability to increase the commitments under the Credit Agreement from time to time by an additional amount of up to $250.0, provided the Company receives commitments for such increases and satisfies certain other conditions. The aggregate available amount of letters of credit outstanding may decrease or increase, subject to a sublimit of $50.0, or the equivalent in other currencies. Our obligations under the Credit Agreement are unsecured. As of March 31, 2021, there were no borrowings under the Credit Agreement; however, we had $10.0 of letters of credit under the Credit Agreement, which reduced our total availability to $1,490.0. We were in compliance with all of our covenants in the Credit Agreement as of March 31, 2021. 364-Day Credit Facility On March 27, 2020, we entered into an agreement for a 364-day revolving credit facility (the "364-Day Credit Facility") that matured on March 26, 2021. The 364-Day Credit Facility was a revolving facility, under which amounts borrowed by us were to be repaid and reborrowed, subject to an aggregate lending limit of $500.0. The cost structure of the 364-Day Credit Agreement was based on the Company’s credit ratings. The applicable margin for Base Rate Advances (as defined in the 364-Day Credit Facility) was 0.250%, the applicable margin for Eurodollar Rate Advances (as defined in the 364-Day Credit Facility) was 1.250%, and the facility fee payable on a lender’s revolving commitment was 0.250%. In addition, the 364-Day Credit Facility included covenants that, among other things, (i) limited our liens and the liens of our consolidated subsidiaries, and (ii) limited subsidiary debt. The 364-Day Credit Facility also contained a financial covenant that required us to maintain, on a consolidated basis as of the end of each fiscal quarter, a leverage ratio for the four quarters then ended. The leverage ratio and other covenants set forth in the 364-Day Credit Facility were equivalent to the covenants contained in the Company’s existing Credit Agreement, which remains in full effect. Uncommitted Lines of Credit We also have uncommitted lines of credit with various banks that permit borrowings at variable interest rates and that are primarily used to fund working capital needs. We have guaranteed the repayment of some of these borrowings made by certain subsidiaries. If we lose access to these credit lines, we would have to provide funding directly to some of our operations. As of March 31, 2021, the Company had uncommitted lines of credit in an aggregate amount of $927.9, under which we had outstanding borrowings of $43.1 classified as short-term borrowings on our Consolidated Balance Sheet. The average amount outstanding during the first quarter of 2021 was $81.4 with a weighted-average interest rate of approximately 2.9%. Commercial Paper The Company is authorized to issue unsecured commercial paper up to a maximum aggregate amount outstanding at any time of $1,500.0. Borrowings under the program are supported by the Credit Agreement described above. Proceeds of the commercial paper are used for working capital and general corporate purposes, including the repayment of maturing indebtedness and other short-term liquidity needs. The maturities of the commercial paper vary but may not exceed 397 days from the date of issue. During the first quarter of 2021, there was no commercial paper activity and, as of March 31, 2021, there was no commercial paper outstanding. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 2020 Net income available to IPG common stockholders $ 91.7 $ 4.7 Weighted-average number of common shares outstanding - basic 391.5 387.7 Dilutive effect of stock options and restricted shares 4.5 4.0 Weighted-average number of common shares outstanding - diluted 396.0 391.7 Earnings per share available to IPG common stockholders: Basic $ 0.23 $ 0.01 Diluted $ 0.23 $ 0.01 |
Supplementary Data (Notes)
Supplementary Data (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Supplementary Data [Abstract] | |
Accrued Liabilities | Accrued Liabilities The following table presents the components of accrued liabilities. March 31, December 31, Salaries, benefits and related expenses $ 330.7 $ 504.6 Acquisition obligations 59.2 47.9 Interest 45.9 43.6 Income taxes payable 29.2 50.6 Restructuring charges 29.1 69.5 Office and related expenses 23.0 25.5 Other 91.8 90.7 Total accrued liabilities $ 608.9 $ 832.4 |
Other Income, Net | Other Expense, Net Results of operations for the three months ended March 31, 2021 and 2020 include certain items that are not directly associated with our revenue-producing operations. Three months ended 2021 2020 Loss on early extinguishment of debt $ (74.0) $ 0.0 Net losses on sales of businesses (12.5) (23.3) Other 2.6 1.5 Total other expense, net $ (83.9) $ (21.8) Loss on early extinguishment of debt – During the three months ended March 31, 2021, we recorded a loss of $74.0 related to the early extinguishment of all $250.0 aggregate principal amount of our 4.000% unsecured senior notes due 2022, all $500.0 aggregate principal amount of our 3.750% unsecured senior notes due 2023, and $250.0 of the $500.0 aggregate principal amount of our 4.200% unsecured senior notes due 2024. See Note 3 for further information. Net losses on sales of businesses – During the three months ended March 31, 2021 and 2020, 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 DXTRA reportable segments. The businesses held for sale primarily represent unprofitable, non-strategic agencies which are expected to be sold within the next twelve months. |
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 March 31, 2021, $338.4, |
Redeemable Noncontrolling Interest [Table Text Block] | 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, if necessary, to their estimated redemption value, but not less than their initial fair value. Any adjustments to the redemption value impact retained earnings or additional paid in capital, except for foreign currency translation adjustments. The following table presents changes in our redeemable noncontrolling interests. Three months ended 2021 2020 Balance at beginning of period $ 93.1 $ 164.7 Change in related noncontrolling interests balance 0.2 (2.9) Changes in redemption value of redeemable noncontrolling interests: Additions 0.0 0.0 Redemptions (5.7) (2.5) Redemption value adjustments (2.4) (4.5) Balance at end of period $ 85.2 $ 154.8 |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2021, our income tax expense was negatively impacted by net losses on sales of businesses and the classification of certain assets as held for sale for which we received minimal tax benefit, as well as by losses in certain foreign jurisdictions where we receive no tax benefit due to 100% valuation allowances, partially offset by excess tax benefits on employee share-based payments, the majority of which is typically recognized in the first quarter due to the timing of the vesting of awards. 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 $20.0 and $30.0 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 2016. 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) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Charges Beginning in the second quarter of 2020, the Company took restructuring actions to lower its operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business (the “2020 Restructuring Plan”). These actions continued through the fourth quarter, and most were based on our recent experience and learning in the COVID-19 pandemic and a resulting review of our operations to address certain operating expenses such as occupancy expense and salaries and related expenses. Lease impairment costs, which relate to the office spaces that were vacated as part of the 2020 Restructuring Plan, included impairments of operating lease right-of-use assets and associated leasehold improvements, furniture and asset retirement obligations in addition to losses and gains related to early lease terminations. Lease impairments were calculated based on estimated fair values using market participant assumptions including forecasted net discounted cash flows related to the operating lease right-of-use assets. All restructuring actions were identified and initiated in 2020, with all actions completed by the end of the fourth quarter of 2020. The amounts for the three months ended March 31, 2021 are adjustments to the actions taken in 2020. The components of the restructuring charges related to the 2020 Restructuring Plan are listed below. Three months ended 2021 2020 Severance and termination costs $ 1.5 $ 0.0 Lease impairment costs (0.4) 0.0 Other restructuring costs 0.2 0.0 Total restructuring charges $ 1.3 $ 0.0 Net restructuring charges were comprised of $0.5 at IAN and $0.8 at DXTRA for the three months ended March 31, 2021. A summary of the restructuring activities taken in the first quarter of 2021 related to the 2020 Restructuring Plan is as follows: 2020 Restructuring Plan Liability at December 31, 2020 Restructuring Expense Non-Cash Items Cash Payments Liability at March 31, 2021 Severance and termination costs $ 74.6 $ 1.5 $ 0.2 $ 43.1 $ 32.8 Lease impairment costs 0.0 (0.4) (0.4) 0.0 0.0 Other restructuring costs 0.0 0.2 0.0 0.2 0.0 Total $ 74.6 $ 1.3 $ (0.2) $ 43.3 $ 32.8 |
Incentive Compensation Plans (N
Incentive Compensation Plans (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
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 various plans established by the Compensation and Leadership Talent Committee of the Board of Directors (the "Compensation Committee") and approved by our stockholders. We issued the following stock-based awards under the 2019 Performance Incentive Plan (the "2019 PIP") during the three months ended March 31, 2021. Awards Weighted-average Restricted stock (units) 0.7 $ 25.45 Performance-based stock (shares) 0.5 $ 21.71 Stock options (shares) 0.3 $ 3.94 Total stock-based compensation awards 1.5 During the three months ended March 31, 2021, the Compensation Committee granted performance cash awards under the 2019 PIP and restricted cash awards under the 2020 Restricted Cash Plan with a total annual target value of $38.3 and $76.6, respectively. Cash awards are expensed over the vesting period, which is typically three years for performance cash awards and two years or three years for restricted cash awards. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Net of Tax (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
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 Derivative Defined Benefit Pension and Other Postretirement Plans Total Balance as of December 31, 2020 $ (637.6) $ 6.8 $ (249.4) $ (880.2) Other comprehensive (loss) income before reclassifications (40.9) 18.4 0.0 (22.5) Amount reclassified from accumulated other comprehensive loss, net of tax 0.7 3.9 1.8 6.4 Balance as of March 31, 2021 $ (677.8) $ 29.1 $ (247.6) $ (896.3) Foreign Currency Derivative Defined Benefit Pension and Other Postretirement Plans Total Balance as of December 31, 2019 $ (697.7) $ (3.5) $ (228.8) $ (930.0) Other comprehensive loss before reclassifications (145.5) (0.4) (1.2) (147.1) Amount reclassified from accumulated other comprehensive loss, net of tax (3.6) 0.5 1.5 (1.6) Balance as of March 31, 2020 $ (846.8) $ (3.4) $ (228.5) $ (1,078.7) Amounts reclassified from accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2021 and 2020 are as follows: Three months ended Affected Line Item in the Consolidated Statements of Operations 2021 2020 Foreign currency translation adjustments $ 0.7 $ (3.6) Other expense, net Losses on derivative instruments 5.2 0.6 Other expense, net, Interest expense Amortization of defined benefit pension and postretirement plan items 2.3 1.9 Other expense, net Tax effect (1.8) (0.5) Provision for income taxes Total amount reclassified from accumulated other comprehensive loss, net of tax $ 6.4 $ (1.6) |
Employee Benefits (Notes)
Employee Benefits (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [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 o bligation. Certain immaterial foreign pension and postretirement benefit plans have been excluded fro m 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 March 31, 2021 2020 2021 2020 2021 2020 Service cost $ 0.0 $ 0.0 $ 1.1 $ 1.2 $ 0.0 $ 0.0 Interest cost 0.7 1.0 2.0 2.3 0.2 0.2 Expected return on plan assets (1.4) (1.4) (5.2) (4.7) 0.0 0.0 Amortization of: Unrecognized actuarial losses 0.5 0.4 1.7 1.4 0.1 0.1 Net periodic cost $ (0.2) $ 0.0 $ (0.4) $ 0.2 $ 0.3 $ 0.3 The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the Consolidated Statements of Operations. During the three months ended March 31, 2021, we contributed $1.3 and $4.6 of cash to our domestic and foreign pension plans, respectively. For the remainder of 2021, we expect to contribute approximately $1.0 and $14.0 of cash to our domestic and foreign pension plans, respectively. |
Segment Information (Notes)
Segment Information (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | Segment Information As of March 31, 2021, we have two reportable segments: IAN and DXTRA. IAN is comprised of McCann Worldgroup, Foote, Cone & Belding ("FCB"), MullenLowe Group, Media, Data Services and Tech, which includes IPG Mediabrands, Acxiom and Kinesso, our digital specialist agencies and our domestic integrated agencies. DXTRA is comprised of a number of our specialist marketing services offerings including Weber Shandwick, DeVries, Golin, FutureBrands, Jack Morton and Octagon Worldwide. We also report results for the “Corporate and Other” group. 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 2021 2020 Total revenue: IAN $ 1,851.4 $ 1,818.8 DXTRA 405.6 541.0 Total $ 2,257.0 $ 2,359.8 Net revenue: IAN $ 1,734.1 $ 1,664.5 DXTRA 293.6 307.6 Total $ 2,027.7 $ 1,972.1 Segment EBITA 1 : IAN $ 254.3 $ 99.0 DXTRA 40.4 22.3 Corporate and Other (30.1) (24.1) Total $ 264.6 $ 97.2 Amortization of acquired intangibles: IAN $ 20.5 $ 20.2 DXTRA 1.1 1.1 Corporate and Other 0.0 0.0 Total $ 21.6 $ 21.3 Depreciation and amortization 2 : IAN $ 41.4 $ 44.7 DXTRA 4.3 5.1 Corporate and Other 1.9 1.7 Total $ 47.6 $ 51.5 Capital expenditures: IAN $ 21.7 $ 33.7 DXTRA 0.7 1.6 Corporate and Other 5.9 9.3 Total $ 28.3 $ 44.6 1 Adjusted EBITA is calculated as net income available to IPG common stockholders before provision for incomes taxes, total (expenses) and other income, equity in net loss of unconsolidated affiliates, net (income) loss attributable to noncontrolling interests and amortization of acquired intangibles. 2 Excludes amortization of acquired intangibles. March 31, December 31, Total assets: IAN $ 13,587.8 $ 14,784.5 DXTRA 1,519.7 1,549.2 Corporate and Other 1,242.2 1,709.0 Total $ 16,349.7 $ 18,042.7 The following table presents the reconciliation of segment EBITA to Income before income taxes. Three months ended 2021 2020 IAN EBITA $ 254.3 $ 99.0 DXTRA EBITA 40.4 22.3 Corporate and Other EBITA (30.1) (24.1) Less: consolidated amortization of acquired intangibles 21.6 21.3 Operating income 243.0 75.9 Total (expenses) and other income (126.6) (55.9) Income before income taxes $ 116.4 $ 20.0 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
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 three months ended March 31, 2021. The following tables present information about our financial instruments measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. March 31, 2021 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 1,160.6 $ 0.0 $ 0.0 $ 1,160.6 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 99.7 $ 99.7 Accrued liabilities and Other non-current liabilities December 31, 2020 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 1,507.4 $ 0.0 $ 0.0 $ 1,507.4 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 95.5 $ 95.5 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 increase in this balance of $4.2 from December 31, 2020 to March 31, 2021 is primarily due to the exercises of redeemable noncontrolling interest and valuation adjustments, partially offset by payments related to ownership increase in our consolidated subsidiaries. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. Financial Instruments that are not Measured at Fair Value on a Recurring Basis The following table presents information about our financial instruments that are not measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. March 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Total long-term debt $ 0.0 $ 3,696.8 $ 43.1 $ 3,739.9 $ 0.0 $ 3,951.1 $ 43.9 $ 3,995.0 Our long-term debt is comprised of senior notes and other notes payable. The fair value of our senior notes, which are traded over-the-counter, is based on quoted prices in markets that are not active. Therefore, these senior notes are classified as Level 2. Our other notes payable are not actively traded, and their fair value is not solely derived from readily observable inputs. The fair value of our other notes payable is determined based on a discounted cash flow model and other proprietary valuation methods, and therefore is classified as Level 3. See Note 3 for further information on our long-term debt. The discount rates used as significant unobservable inputs in the Level 3 fair value measurements of our contingent acquisition obligations and long-term debt as of March 31, 2021 ranged from 1.0% to 4.0% an d 0.4% to 3.4%, respectively. Non-financial Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees As discussed in our 2020 Annual Report, we have guaranteed certain obligations of our subsidiaries relating principally to operating leases, uncommitted lines of credit and cash pooling arrangements. As of March 31, 2021 and December 31, 2020, the amount of parent company guarantees on lease obligations was $616.8 and $630.8, respectively, the amount of parent company guarantees relating to uncommitted lines of credit was $400.4 and $399.6, 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 $106.3 and $109.2, respectively. In the event of non-payment by the applicable subsidiary of the obligations covered by a guarantee, we would be obligated to pay the amounts covered by that guarantee. As of March 31, 2021, there were no material assets pledged as security for such parent company guarantees. Legal Matters We are involved in various legal proceedings, and subject to investigations, inspections, audits, inquiries and similar actions by governmental authorities, arising in the normal course of business. The types of allegations that arise in connection with such legal proceedings vary in nature, but can include claims related to contract, employment, tax and intellectual property matters. We evaluate all cases each reporting period and record liabilities for losses from legal proceedings when we determine that it is probable that the outcome in a legal proceeding will be unfavorable and the amount, or potential range, of loss can be reasonably estimated. In certain cases, we cannot reasonably estimate the potential loss because, for example, the litigation is in its early stages. While any outcome related to litigation or such governmental proceedings in which we are involved cannot be predicted with certainty, management believes that the outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial condition, results of operations or cash flows. |
Recent Accounting Standards (No
Recent Accounting Standards (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Accounting pronouncements not listed below were assessed and determined to be not applicable or are expected to have minimal impact on our Consolidated Financial Statements. Income Taxes In December 2019, the FASB issued amended guidance to simplify the accounting for income taxes by removing certain exceptions and amending certain sections of existing guidance under ASC 740. This amended guidance was effective beginning January 1, 2021. The adoption of this amended guidance did not have a material impact on our Consolidated Financial Statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue Principal Geographic Markets | Our agencies are located in over 100 countries, including every significant world market. Our geographic revenue breakdown is listed below. Three months ended Total revenue: 2021 2020 United States $ 1,425.8 $ 1,569.6 International: United Kingdom 203.5 197.1 Continental Europe 195.6 169.8 Asia Pacific 210.9 211.4 Latin America 83.6 86.8 Other 137.6 125.1 Total International 831.2 790.2 Total Consolidated $ 2,257.0 $ 2,359.8 Three months ended Net revenue: 2021 2020 United States $ 1,309.8 $ 1,320.0 International: United Kingdom 184.0 165.7 Continental Europe 175.8 146.0 Asia Pacific 169.1 158.8 Latin America 75.4 79.3 Other 113.6 102.3 Total International 717.9 652.1 Total Consolidated $ 2,027.7 $ 1,972.1 IAN Three months ended Total revenue: 2021 2020 United States $ 1,157.9 $ 1,193.3 International 693.5 625.5 Total IAN $ 1,851.4 $ 1,818.8 Net revenue: United States $ 1,113.5 $ 1,111.9 International 620.6 552.6 Total IAN $ 1,734.1 $ 1,664.5 DXTRA Three months ended Total revenue: 2021 2020 United States $ 267.9 $ 376.3 International 137.7 164.7 Total DXTRA $ 405.6 $ 541.0 Net revenue: United States $ 196.3 $ 208.1 International 97.3 99.5 Total DXTRA $ 293.6 $ 307.6 |
Contract Balances | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. March 31, December 31, Accounts receivable, net of allowance of $92.6 and $98.3, respectively $ 3,440.3 $ 4,646.4 Accounts receivable, billable to clients 1,842.7 1,820.7 Contract assets 43.1 51.8 Contract liabilities (deferred revenue) 689.1 657.8 |
Debt and Credit Arrangements (T
Debt and Credit Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Amounts and Fair Values of Long-term Debt | A summary of the carrying amounts of our long-term debt is listed below. Effective March 31, December 31, 3.750% Senior Notes due 2021 (less unamortized discount and issuance costs of $0.1 and $0.5, respectively) 3.980% $ 499.4 $ 499.1 4.000% Senior Notes due 2022 4.130% — 249.3 3.750% Senior Notes due 2023 4.320% — 498.8 4.200% Senior Notes due 2024 (less unamortized discount and issuance costs of $0.2 and $0.6, respectively) 4.240% 249.2 498.3 4.650% Senior Notes due 2028 (less unamortized discount and issuance costs of $1.3 and $3.4, respectively) 4.780% 495.3 495.2 4.750% Senior Notes due 2030 (less unamortized discount and issuance costs of $3.5 and $5.5, respectively) 4.920% 641.0 640.8 2.400% Senior Notes due 2031 (less unamortized discount and issuance costs of $0.8 and $4.7, respectively) 2.512% 494.5 — 3.375% Senior Notes due 2041 (less unamortized discount and issuance costs of $1.1 and $5.8, respectively) 3.448% 493.1 — 5.400% Senior Notes due 2048 (less unamortized discount and issuance costs of $2.7 and $5.1, respectively) 5.480% 492.2 492.1 Other notes payable and capitalized leases 45.0 44.7 Total long-term debt 3,409.7 3,418.3 Less: current portion 502.8 502.5 Long-term debt, excluding current portion $ 2,906.9 $ 2,915.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 2020 Net income available to IPG common stockholders $ 91.7 $ 4.7 Weighted-average number of common shares outstanding - basic 391.5 387.7 Dilutive effect of stock options and restricted shares 4.5 4.0 Weighted-average number of common shares outstanding - diluted 396.0 391.7 Earnings per share available to IPG common stockholders: Basic $ 0.23 $ 0.01 Diluted $ 0.23 $ 0.01 |
Supplementary Data (Tables)
Supplementary Data (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Supplementary Data [Abstract] | |
Accrued Liabilities | The following table presents the components of accrued liabilities. March 31, December 31, Salaries, benefits and related expenses $ 330.7 $ 504.6 Acquisition obligations 59.2 47.9 Interest 45.9 43.6 Income taxes payable 29.2 50.6 Restructuring charges 29.1 69.5 Office and related expenses 23.0 25.5 Other 91.8 90.7 Total accrued liabilities $ 608.9 $ 832.4 |
Other Income (Expense), Net | Results of operations for the three months ended March 31, 2021 and 2020 include certain items that are not directly associated with our revenue-producing operations. Three months ended 2021 2020 Loss on early extinguishment of debt $ (74.0) $ 0.0 Net losses on sales of businesses (12.5) (23.3) Other 2.6 1.5 Total other expense, net $ (83.9) $ (21.8) |
Redeemable Noncontrolling Interest [Table Text Block] | 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, if necessary, to their estimated redemption value, but not less than their initial fair value. Any adjustments to the redemption value impact retained earnings or additional paid in capital, except for foreign currency translation adjustments. The following table presents changes in our redeemable noncontrolling interests. Three months ended 2021 2020 Balance at beginning of period $ 93.1 $ 164.7 Change in related noncontrolling interests balance 0.2 (2.9) Changes in redemption value of redeemable noncontrolling interests: Additions 0.0 0.0 Redemptions (5.7) (2.5) Redemption value adjustments (2.4) (4.5) Balance at end of period $ 85.2 $ 154.8 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The components of the restructuring charges related to the 2020 Restructuring Plan are listed below. Three months ended 2021 2020 Severance and termination costs $ 1.5 $ 0.0 Lease impairment costs (0.4) 0.0 Other restructuring costs 0.2 0.0 Total restructuring charges $ 1.3 $ 0.0 |
Schedule of Restructuring activities related to the 2020 Plan [Table Text Block] | A summary of the restructuring activities taken in the first quarter of 2021 related to the 2020 Restructuring Plan is as follows: 2020 Restructuring Plan Liability at December 31, 2020 Restructuring Expense Non-Cash Items Cash Payments Liability at March 31, 2021 Severance and termination costs $ 74.6 $ 1.5 $ 0.2 $ 43.1 $ 32.8 Lease impairment costs 0.0 (0.4) (0.4) 0.0 0.0 Other restructuring costs 0.0 0.2 0.0 0.2 0.0 Total $ 74.6 $ 1.3 $ (0.2) $ 43.3 $ 32.8 |
Incentive Compensation Plans (T
Incentive Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Stock-based Compensation Awards | We issued the following stock-based awards under the 2019 Performance Incentive Plan (the "2019 PIP") during the three months ended March 31, 2021. Awards Weighted-average Restricted stock (units) 0.7 $ 25.45 Performance-based stock (shares) 0.5 $ 21.71 Stock options (shares) 0.3 $ 3.94 Total stock-based compensation awards 1.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Net of Tax (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 Derivative Defined Benefit Pension and Other Postretirement Plans Total Balance as of December 31, 2020 $ (637.6) $ 6.8 $ (249.4) $ (880.2) Other comprehensive (loss) income before reclassifications (40.9) 18.4 0.0 (22.5) Amount reclassified from accumulated other comprehensive loss, net of tax 0.7 3.9 1.8 6.4 Balance as of March 31, 2021 $ (677.8) $ 29.1 $ (247.6) $ (896.3) Foreign Currency Derivative Defined Benefit Pension and Other Postretirement Plans Total Balance as of December 31, 2019 $ (697.7) $ (3.5) $ (228.8) $ (930.0) Other comprehensive loss before reclassifications (145.5) (0.4) (1.2) (147.1) Amount reclassified from accumulated other comprehensive loss, net of tax (3.6) 0.5 1.5 (1.6) Balance as of March 31, 2020 $ (846.8) $ (3.4) $ (228.5) $ (1,078.7) |
Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2021 and 2020 are as follows: Three months ended Affected Line Item in the Consolidated Statements of Operations 2021 2020 Foreign currency translation adjustments $ 0.7 $ (3.6) Other expense, net Losses on derivative instruments 5.2 0.6 Other expense, net, Interest expense Amortization of defined benefit pension and postretirement plan items 2.3 1.9 Other expense, net Tax effect (1.8) (0.5) Provision for income taxes Total amount reclassified from accumulated other comprehensive loss, net of tax $ 6.4 $ (1.6) |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Periodic Costs | The components of net periodic cost for the Domestic Pension Plan, the significant foreign pension plans and the domestic postretirement benefit plan are listed below. Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Three Months Ended March 31, 2021 2020 2021 2020 2021 2020 Service cost $ 0.0 $ 0.0 $ 1.1 $ 1.2 $ 0.0 $ 0.0 Interest cost 0.7 1.0 2.0 2.3 0.2 0.2 Expected return on plan assets (1.4) (1.4) (5.2) (4.7) 0.0 0.0 Amortization of: Unrecognized actuarial losses 0.5 0.4 1.7 1.4 0.1 0.1 Net periodic cost $ (0.2) $ 0.0 $ (0.4) $ 0.2 $ 0.3 $ 0.3 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 2021 2020 Total revenue: IAN $ 1,851.4 $ 1,818.8 DXTRA 405.6 541.0 Total $ 2,257.0 $ 2,359.8 Net revenue: IAN $ 1,734.1 $ 1,664.5 DXTRA 293.6 307.6 Total $ 2,027.7 $ 1,972.1 Segment EBITA 1 : IAN $ 254.3 $ 99.0 DXTRA 40.4 22.3 Corporate and Other (30.1) (24.1) Total $ 264.6 $ 97.2 Amortization of acquired intangibles: IAN $ 20.5 $ 20.2 DXTRA 1.1 1.1 Corporate and Other 0.0 0.0 Total $ 21.6 $ 21.3 Depreciation and amortization 2 : IAN $ 41.4 $ 44.7 DXTRA 4.3 5.1 Corporate and Other 1.9 1.7 Total $ 47.6 $ 51.5 Capital expenditures: IAN $ 21.7 $ 33.7 DXTRA 0.7 1.6 Corporate and Other 5.9 9.3 Total $ 28.3 $ 44.6 1 Adjusted EBITA is calculated as net income available to IPG common stockholders before provision for incomes taxes, total (expenses) and other income, equity in net loss of unconsolidated affiliates, net (income) loss attributable to noncontrolling interests and amortization of acquired intangibles. 2 Excludes amortization of acquired intangibles. March 31, December 31, Total assets: IAN $ 13,587.8 $ 14,784.5 DXTRA 1,519.7 1,549.2 Corporate and Other 1,242.2 1,709.0 Total $ 16,349.7 $ 18,042.7 The following table presents the reconciliation of segment EBITA to Income before income taxes. Three months ended 2021 2020 IAN EBITA $ 254.3 $ 99.0 DXTRA EBITA 40.4 22.3 Corporate and Other EBITA (30.1) (24.1) Less: consolidated amortization of acquired intangibles 21.6 21.3 Operating income 243.0 75.9 Total (expenses) and other income (126.6) (55.9) Income before income taxes $ 116.4 $ 20.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended | |
Mar. 31, 2021 | ||
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information about our financial instruments measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. March 31, 2021 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 1,160.6 $ 0.0 $ 0.0 $ 1,160.6 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 99.7 $ 99.7 Accrued liabilities and Other non-current liabilities December 31, 2020 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 1,507.4 $ 0.0 $ 0.0 $ 1,507.4 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 95.5 $ 95.5 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 increase in this balance of $4.2 from December 31, 2020 to March 31, 2021 is primarily due to the exercises of redeemable noncontrolling interest and valuation adjustments, partially offset by payments related to ownership increase in our consolidated subsidiaries. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. | [1] |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following table presents information about our financial instruments that are not measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. March 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Total long-term debt $ 0.0 $ 3,696.8 $ 43.1 $ 3,739.9 $ 0.0 $ 3,951.1 $ 43.9 $ 3,995.0 | |
[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 increase in this balance of $4.2 from December 31, 2020 to March 31, 2021 is primarily due to the exercises of redeemable noncontrolling interest and valuation adjustments, partially offset by payments related to ownership increase in our consolidated subsidiaries. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. |
Revenue Major Geographical Area
Revenue Major Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total revenues: | ||
Total revenue | $ 2,257 | $ 2,359.8 |
Net revenue | 2,027.7 | 1,972.1 |
United States | ||
Total revenues: | ||
Total revenue | 1,425.8 | 1,569.6 |
Net revenue | 1,309.8 | 1,320 |
United Kingdom | ||
Total revenues: | ||
Total revenue | 203.5 | 197.1 |
Net revenue | 184 | 165.7 |
Continental Europe | ||
Total revenues: | ||
Total revenue | 195.6 | 169.8 |
Net revenue | 175.8 | 146 |
Asia Pacific | ||
Total revenues: | ||
Total revenue | 210.9 | 211.4 |
Net revenue | 169.1 | 158.8 |
Latin America | ||
Total revenues: | ||
Total revenue | 83.6 | 86.8 |
Net revenue | 75.4 | 79.3 |
Other | ||
Total revenues: | ||
Total revenue | 137.6 | 125.1 |
Net revenue | 113.6 | 102.3 |
International | ||
Total revenues: | ||
Total revenue | 831.2 | 790.2 |
Net revenue | 717.9 | 652.1 |
IAN | ||
Total revenues: | ||
Total revenue | 1,851.4 | 1,818.8 |
Net revenue | 1,734.1 | 1,664.5 |
IAN | United States | ||
Total revenues: | ||
Total revenue | 1,157.9 | 1,193.3 |
Net revenue | 1,113.5 | 1,111.9 |
IAN | International | ||
Total revenues: | ||
Total revenue | 693.5 | 625.5 |
Net revenue | 620.6 | 552.6 |
CMG | ||
Total revenues: | ||
Total revenue | 405.6 | 541 |
Net revenue | 293.6 | 307.6 |
CMG | United States | ||
Total revenues: | ||
Total revenue | 267.9 | 376.3 |
Net revenue | 196.3 | 208.1 |
CMG | International | ||
Total revenues: | ||
Total revenue | 137.7 | 164.7 |
Net revenue | $ 97.3 | $ 99.5 |
Revenue Contract Balances (Deta
Revenue Contract Balances (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts receivable, net of allowance of $92.6 and $98.3, respectively | $ 3,440.3 | $ 4,646.4 |
Accounts receivable, billable to clients | 1,842.7 | 1,820.7 |
Contract assets | 43.1 | 51.8 |
Contract liabilities (deferred revenue) | 689.1 | $ 657.8 |
Revenue, Remaining Performance Obligation, Amount | $ 643 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 3,409,700,000 | $ 3,418,300,000 | |
Long-term Debt, Fair Value | 3,739,900,000 | 3,995,000,000 | |
Long-term Debt, Current Maturities | 502,800,000 | 502,500,000 | |
Long-term Debt, Excluding Current Maturities | 2,906,900,000 | 2,915,800,000 | |
Gain (Loss) on Extinguishment of Debt | (74,000,000) | $ 0 | |
3.750% Notes Due 2021 (less unamortized discount and issuance costs of $0.1 and $0.5, respectively) | |||
Debt Instrument [Line Items] | |||
Par Value | $ 500,000,000 | ||
Maturity Date | Oct. 1, 2021 | ||
Interest Rate Stated Percentage | 3.75% | ||
Effective Interest Rate | 3.98% | ||
Unamortized Discount | $ 100,000 | ||
Issuance Cost | 500,000 | ||
Long-term Debt, Gross | 499,400,000 | 499,100,000 | |
4.000% Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Par Value | $ 250,000,000 | ||
Interest Rate Stated Percentage | 4.00% | ||
Effective Interest Rate | 4.13% | ||
Long-term Debt, Gross | $ 0 | 249,300,000 | |
Gain (Loss) on Extinguishment of Debt | 9,200,000 | ||
3.750% Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Par Value | $ 500,000,000 | ||
Interest Rate Stated Percentage | 3.75% | ||
Effective Interest Rate | 4.32% | ||
Long-term Debt, Gross | $ 0 | 498,800,000 | |
Gain (Loss) on Extinguishment of Debt | 36,500,000 | ||
4.200% Notes Due 2024 (less unamortized discount and issuance costs of $0.2 and $0.6, respectively) | |||
Debt Instrument [Line Items] | |||
Par Value | $ 500,000,000 | ||
Effective Interest Rate | 4.24% | ||
Long-term Debt, Gross | 498,300,000 | ||
4.650% Notes Due 2028 (less unamortized discount and issuance costs of $1.3 and $3.4, respectively) | |||
Debt Instrument [Line Items] | |||
Par Value | $ 500,000,000 | ||
Maturity Date | Oct. 1, 2028 | ||
Interest Rate Stated Percentage | 4.65% | ||
Effective Interest Rate | 4.78% | ||
Unamortized Discount | $ 1,300,000 | ||
Issuance Cost | 3,400,000 | ||
Long-term Debt, Gross | 495,300,000 | 495,200,000 | |
4.750% Notes Due 2030 (less unamortized discount and issuance costs of $3.5 and $5.5, respectively) | |||
Debt Instrument [Line Items] | |||
Par Value | $ 650,000,000 | ||
Maturity Date | Mar. 30, 2030 | ||
Interest Rate Stated Percentage | 4.75% | ||
Effective Interest Rate | 4.92% | ||
Unamortized Discount | $ 3,500,000 | ||
Issuance Cost | 5,500,000 | ||
Long-term Debt, Gross | 641,000,000 | 640,800,000 | |
2.400% Notes Due 2031 (less unamortized discount and issuance costs of $0.8 and $4.7, respectively) | |||
Debt Instrument [Line Items] | |||
Par Value | $ 500,000,000 | ||
Effective Interest Rate | 2.512% | ||
Unamortized Discount | $ 800,000 | ||
Issuance Cost | 4,700,000 | ||
Long-term Debt, Gross | $ 494,500,000 | 0 | |
3.375% Notes Due 2041 (less unamortized discount and issuance costs of $1.1 and $5.8, respectively) | |||
Debt Instrument [Line Items] | |||
Effective Interest Rate | 3.448% | ||
Unamortized Discount | $ 1,100,000 | ||
Issuance Cost | 5,800,000 | ||
Long-term Debt, Gross | 493,100,000 | 0 | |
5.400% Notes Due 2048 (less unamortized discount and issuance costs of $2.7 and $5.1, respectively) | |||
Debt Instrument [Line Items] | |||
Par Value | $ 500,000,000 | ||
Maturity Date | Oct. 1, 2048 | ||
Interest Rate Stated Percentage | 5.40% | ||
Effective Interest Rate | 5.48% | ||
Unamortized Discount | $ 2,700,000 | ||
Issuance Cost | 5,100,000 | ||
Long-term Debt, Gross | 492,200,000 | 492,100,000 | |
Other notes payable and capitalized leases | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 45,000,000 | $ 44,700,000 | |
Unsecured Debt 2.400% Note [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Stated Percentage | 2.40% | ||
Unsecured Debt | $ 494,500,000 | ||
Debt Instrument, Unamortized Discount | 800,000 | ||
Debt Issuance Costs, Gross | 4,700,000 | ||
Unsecured Debt 3.375% Note | |||
Debt Instrument [Line Items] | |||
Par Value | $ 500,000,000 | ||
Interest Rate Stated Percentage | 3.375% | ||
Unsecured Debt | $ 493,100,000 | ||
Debt Instrument, Unamortized Discount | 1,100,000 | ||
Debt Issuance Costs, Gross | 5,800,000 | ||
Unsecured Debt 4.200% Notes Remaining Principal | |||
Debt Instrument [Line Items] | |||
Par Value | $ 250,000,000 | ||
Maturity Date | Apr. 15, 2024 | ||
Interest Rate Stated Percentage | 4.20% | ||
Unamortized Discount | $ 200,000 | ||
Issuance Cost | 600,000 | ||
Long-term Debt, Gross | 249,200,000 | ||
Gain (Loss) on Extinguishment of Debt | $ 28,300,000 |
Credit Facilities (Details)
Credit Facilities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)Rate | |
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 | 10 |
Line of Credit Facility, Remaining Borrowing Capacity | 1,490 |
Uncommitted credit facility [Member] | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 927.9 |
Line of Credit Outstanding, Amount | 43.1 |
Line of Credit Facility, Average Outstanding Amount | $ 81.4 |
Short-term Debt, Weighted Average Interest Rate, over Time | 2.90% |
364 Day [Member] | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 |
Margin for base rate advances | Rate | 0.25% |
Margin for Eurocurrency rate advances | Rate | 1.25% |
Line of Credit Facility, Commitment Fee Percentage | Rate | 0.25% |
Commercial Paper (Details)
Commercial Paper (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Debt Disclosure [Abstract] | |
Commercial paper borrowing capacity | $ 1,500 |
Debt Instrument, Term | 397 days |
Commercial Paper, Average Outstanding | $ 0 |
Commercial Paper | $ 0 |
Debt and Credit Arrangements De
Debt and Credit Arrangements Debt Transactions (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Gain (Loss) on Extinguishment of Debt | $ (74,000,000) | $ 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (5,200,000) | $ (600,000) |
4.750% Notes Due 2030 (less unamortized discount and issuance costs of $3.5 and $5.5, respectively) | ||
Debt Instrument [Line Items] | ||
Par Value | $ 650,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |
4.000% Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Par Value | $ 250,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |
Gain (Loss) on Extinguishment of Debt | $ 9,200,000 | |
Redemption Premium | 8,600,000 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 600,000 | |
Payment for Debt Extinguishment or Debt Prepayment Cost | 258,900,000 | |
4.200% Notes Due 2024 (less unamortized discount and issuance costs of $0.2 and $0.6, respectively) | ||
Debt Instrument [Line Items] | ||
Par Value | 500,000,000 | |
Unsecured Debt 3.75% Note Due in 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | |
Unsecured Debt 2.400% Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.40% | |
Unsecured Debt | $ 494,500,000 | |
Debt Instrument, Unamortized Discount | 800,000 | |
Debt Issuance Costs, Gross | 4,700,000 | |
Unsecured Debt 4.65% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.65% | |
Unsecured Debt 5.40% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | |
2.400% Notes Due 2031 (less unamortized discount and issuance costs of $0.8 and $4.7, respectively) | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500,000,000 | |
3.750% Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | |
Gain (Loss) on Extinguishment of Debt | $ 36,500,000 | |
Redemption Premium | 30,700,000 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 1,100,000 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 4,700,000 | |
Payment for Debt Extinguishment or Debt Prepayment Cost | 532,900,000 | |
Unsecured Debt 3.375% Note | ||
Debt Instrument [Line Items] | ||
Par Value | $ 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.375% | |
Unsecured Debt | $ 493,100,000 | |
Debt Instrument, Unamortized Discount | 1,100,000 | |
Debt Issuance Costs, Gross | 5,800,000 | |
Unsecured Debt 4.200% Notes Remaining Principal | ||
Debt Instrument [Line Items] | ||
Par Value | $ 250,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |
Gain (Loss) on Extinguishment of Debt | $ 28,300,000 | |
Redemption Premium | 27,500,000 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 800,000 | |
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 282,200,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income available to IPG common stockholders | $ 91.7 | $ 4.7 |
Weighted-average number of common shares outstanding, Basic | 391.5 | 387.7 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 4.5 | 4 |
Weighted-average number of common shares outstanding, Diluted | 396 | 391.7 |
Earnings per share, Basic | $ 0.23 | $ 0.01 |
Earnings per share, Diluted | $ 0.23 | $ 0.01 |
Supplementary Data Accrued Liab
Supplementary Data Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities [Abstract] | ||
Salaries, benefits and related expenses | $ 330.7 | $ 504.6 |
Interest | 45.9 | 43.6 |
Acquisition obligations | 59.2 | 47.9 |
Restructuring charges | 29.1 | 69.5 |
Office and related expenses | 23 | 25.5 |
Income Taxes payable | 29.2 | 50.6 |
Other | 91.8 | 90.7 |
Total Accrued Liabilities | $ 608.9 | $ 832.4 |
Supplementary Data Other Expens
Supplementary Data Other Expense, Net (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Expense, Net [Abstract] | ||
Gain (Loss) on Extinguishment of Debt | $ (74,000,000) | $ 0 |
Gain (Loss) on Disposition of Business | (12,500,000) | (23,300,000) |
Other Expense, Net, Other | (2,600,000) | (1,500,000) |
Other Nonoperating Income (Expense) | $ (83,900,000) | $ (21,800,000) |
Supplementary Data Share Repurc
Supplementary Data Share Repurchase Program (Details) $ in Millions | Mar. 31, 2021USD ($) |
Disclosure of Repurchase Agreements [Abstract] | |
Stock repurchase program, remaining authorized repurchase amount, excluding fees | $ 338.4 |
Supplementary Data Redeemable N
Supplementary Data Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | $ 85.2 | $ 154.8 | $ 93.1 | $ 164.7 |
Noncontrolling interest related to redeemable noncontrolling interests | 0.2 | (2.9) | ||
Additions | 0 | 0 | ||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (5.7) | (2.5) | ||
Redemption value adjustments | $ (2.4) | $ (4.5) |
Income Taxes Change in Unrecogn
Income Taxes Change in Unrecognized Tax Benefits (Details) $ in Millions | Mar. 31, 2021USD ($) |
Minimum [Member] | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Decrease in unrecognized tax benefits is reasonably possible | $ 30 |
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) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance and termination costs | $ 1,500,000 | $ 0 |
Lease impairment costs | (400,000) | 0 |
Other restructuring costs | 200,000 | 0 |
Restructuring charges | $ 1,300,000 | $ 0 |
Restructuring Charges Segments
Restructuring Charges Segments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1,300,000 | $ 0 |
Lease impairment costs | (400,000) | $ 0 |
IAN [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 500,000 | |
DXTRA [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 800,000 |
Restructuring Charges 2020 Plan
Restructuring Charges 2020 Plan Restructuring Activity (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance and termination costs | $ 1,500,000 | $ 0 | |
Lease impairment costs | (400,000) | 0 | |
Other restructuring costs | 200,000 | 0 | |
Restructuring charges | 1,300,000 | $ 0 | |
Restructuring Reserve | 32,800,000 | $ 74,600,000 | |
DXTRA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 800,000 | ||
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 32,800,000 | 74,600,000 | |
Lease impairment costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 0 | 0 | |
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 0 | $ 0 | |
Non-cash Items [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and termination costs | 200,000 | ||
Lease impairment costs | (400,000) | ||
Other restructuring costs | 0 | ||
Restructuring charges | (200,000) | ||
Cash Payments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and termination costs | 43,100,000 | ||
Lease impairment costs | 0 | ||
Other restructuring costs | 200,000 | ||
Restructuring charges | $ 43,300,000 |
Incentive Compensation Plans St
Incentive Compensation Plans Stock-based Compensation Awards (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Restricted stock (units) | |
Incentive Compensation Plans | |
Granted awards | 0.7 |
Weighted average grant date fair value | $ / shares | $ 25.45 |
Performance-based stock (shares) | |
Incentive Compensation Plans | |
Granted awards | 0.5 |
Exercise of stock options, value | 0.3 |
Weighted average grant date fair value | $ / shares | $ 21.71 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ / shares | $ 3.94 |
Total stock-based compensation awards | |
Incentive Compensation Plans | |
Granted awards | 1.5 |
Incentive Compensation Plans Pl
Incentive Compensation Plans Plan Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Performance cash awards granted during the period target value | $ 38.3 |
Restricted cash awards granted during the period target value | $ 76.6 |
Performance based cash award vesting period | 3 years |
Restricted cash awards vesting period floor | 2 years |
Cash awards vesting period | 3 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (3.9) | $ (0.5) | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (247.6) | (228.5) | $ (249.4) | $ (228.8) |
Foreign currency translation adjustment: | ||||
Balance at beginning of period | (637.6) | (697.7) | ||
Other comprehensive (loss) income before reclassifications | (40.9) | (145.5) | ||
Amount reclassified from accumulated other comprehensive loss, net of tax | 0.7 | (3.6) | ||
Balance at end of period | (677.8) | (846.8) | ||
Derivative Instrument: | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 18.4 | (0.4) | ||
Defined Benefit Pension and Other Postretirement Plans | ||||
Balance at beginning of period | 6.8 | (3.5) | ||
Other comprehensive (loss) income before reclassifications | 0 | (1.2) | ||
Amount reclassified from accumulated other comprehensive loss, net of tax | 1.8 | 1.5 | ||
Balance at end of period | 29.1 | (3.4) | ||
Total: | ||||
Balance at beginning of period | (880.2) | (930) | ||
Other comprehensive (loss) income before reclassifications | (22.5) | (147.1) | ||
Amount reclassified from accumulated other comprehensive loss, net of tax | 6.4 | (1.6) | ||
Balance at end of period | $ (896.3) | $ (1,078.7) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss, Net of Tax Reclassification of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | $ 0.7 | $ (3.6) |
Losses on derivative instruments | 5.2 | 0.6 |
Amortization of defined benefit pension and postretirement plan items | 2.3 | 1.9 |
Tax effect | (1.8) | (0.5) |
Reclassifications from accumulated other comprehensive loss to earnings, net of tax | $ 6.4 | $ (1.6) |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Domestic Plan [Member] | ||
Defined Pension and Postretirement Benefit Plans | ||
Service cost | $ 0 | $ 0 |
Interest cost | 0.7 | 1 |
Expected return on plan assets | (1.4) | (1.4) |
Amortization of: | ||
Unrecognized actuarial losses | 0.5 | 0.4 |
Net periodic cost | (0.2) | 0 |
Pension plan - employer contributions | 1.3 | |
Pension plan - estimated employer contributions for remainder of current fiscal year | 1 | |
Foreign Plan [Member] | ||
Defined Pension and Postretirement Benefit Plans | ||
Service cost | 1.1 | 1.2 |
Interest cost | 2 | 2.3 |
Expected return on plan assets | (5.2) | (4.7) |
Amortization of: | ||
Unrecognized actuarial losses | 1.7 | 1.4 |
Net periodic cost | (0.4) | 0.2 |
Pension plan - employer contributions | 4.6 | |
Pension plan - estimated employer contributions for remainder of current fiscal year | 14 | |
Domestic Postretirement Benefit Plan | ||
Defined Pension and Postretirement Benefit Plans | ||
Service cost | 0 | 0 |
Interest cost | 0.2 | 0.2 |
Expected return on plan assets | 0 | 0 |
Amortization of: | ||
Unrecognized actuarial losses | 0.1 | 0.1 |
Net periodic cost | $ 0.3 | $ 0.3 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segments: | |||
Total revenue | $ 2,257 | $ 2,359.8 | |
Net revenue | 2,027.7 | 1,972.1 | |
Segment EBITA | 264.6 | 97.2 | |
Amortization of acquired intangibles | 21.6 | 21.3 | |
Depreciation | 47.6 | 51.5 | |
Capital expenditures | 28.3 | 44.6 | |
Total assets | 16,349.7 | $ 18,042.7 | |
Operating income | 243 | 75.9 | |
Total (expenses) and other income | (126.6) | (55.9) | |
Income before income taxes | 116.4 | 20 | |
IAN | |||
Segments: | |||
Total revenue | 1,851.4 | 1,818.8 | |
Net revenue | 1,734.1 | 1,664.5 | |
Segment EBITA | 254.3 | 99 | |
Amortization of acquired intangibles | 20.5 | 20.2 | |
Depreciation | 41.4 | 44.7 | |
Capital expenditures | 21.7 | 33.7 | |
Total assets | 13,587.8 | 14,784.5 | |
CMG | |||
Segments: | |||
Total revenue | 405.6 | 541 | |
Net revenue | 293.6 | 307.6 | |
Segment EBITA | 40.4 | 22.3 | |
Amortization of acquired intangibles | 1.1 | 1.1 | |
Depreciation | 4.3 | 5.1 | |
Capital expenditures | 0.7 | 1.6 | |
Total assets | 1,519.7 | 1,549.2 | |
Corporate and Other | |||
Segments: | |||
Segment EBITA | (30.1) | (24.1) | |
Amortization of acquired intangibles | 0 | 0 | |
Depreciation | 1.9 | 1.7 | |
Capital expenditures | 5.9 | $ 9.3 | |
Total assets | $ 1,242.2 | $ 1,709 |
Fair Value on a Recurring and N
Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | ||
Fair value assets and liabilities measured on recurring and nonrecurring basis | |||
Contingent acquisition liability, total change | $ 4.2 | ||
Long-term Debt, Fair Value | $ 3,739.9 | $ 3,995 | |
Discount rate floor contingent acquisition obligations | 1.00% | ||
Discount rate ceiling contingent acquisition obligations | 4.00% | ||
Discount rate floor long-term debt | 0.40% | ||
Discount rate ceiling long-term debt | 3.40% | ||
Level 1 | |||
Fair value assets and liabilities measured on recurring and nonrecurring basis | |||
Cash equivalents | $ 1,160.6 | 1,507.4 | |
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 | 3,696.8 | 3,951.1 | |
Level 3 | |||
Fair value assets and liabilities measured on recurring and nonrecurring basis | |||
Cash equivalents | 0 | 0 | |
Contingent acquisition obligations | [1] | 99.7 | 95.5 |
Long-term Debt, Fair Value | 43.1 | 43.9 | |
Fair Value, Total [Member] | |||
Fair value assets and liabilities measured on recurring and nonrecurring basis | |||
Cash equivalents | 1,160.6 | 1,507.4 | |
Contingent acquisition obligations | [1] | 99.7 | 95.5 |
Long-term Debt, Fair Value | $ 3,739.9 | $ 3,995 | |
[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 increase in this balance of $4.2 from December 31, 2020 to March 31, 2021 is primarily due to the exercises of redeemable noncontrolling interest and valuation adjustments, partially offset by payments related to ownership increase in our consolidated subsidiaries. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease guarantees | $ 616,800,000 | $ 630,800,000 |
Credit facility guarantees | 400,400,000 | 399,600,000 |
Cash pooling guarantees | 106,300,000 | $ 109,200,000 |
Assets pledged as security for parent company guarantees | $ 0 |