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Acquisitions (Notes) | 6 Months Ended
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Jun. 30, 2017
Business Combinations [Abstract] |
Acquisitions | Acquisitions We continue to evaluate strategic opportunities to expand our industry expertise, strengthen our position in high-growth and key strategic geographical markets and industry sectors, advance our technological capabilities and improve our operational efficiency through both acquisitions and increased ownership interests in current investments. Our acquisitions typically provide for an initial payment at the time of closing and additional contingent purchase price payments based on the future performance of the acquired entity. We have entered into agreements that may require us to purchase additional equity interests in certain consolidated and unconsolidated subsidiaries. The amounts at which we record these transactions in our financial statements are based on estimates of the future financial performance of the acquired entity, the timing of the exercise of these rights, foreign currency exchange rates and other factors. During the first half of 2017, we completed three acquisitions, including a content creation and marketing agency based in the Netherlands, an independent media agency and digital consultancy based in Finland, and an integrated marketing communications agency based in Canada. All three of our acquisitions were included in the Integrated Agency Networks ("IAN") operating segment. During the first half of 2017, we recorded approximately $22.9 of goodwill and intangible assets related to our acquisitions. During the first half of 2016, we completed four acquisitions, including a product and service design consultancy based in the U.S., an integrated healthcare marketing communications agency based in the U.S., a content creation and digital agency with offices in the U.S. and the U.K., and a mobile consultancy and application development agency based in the U.K. Of our four acquisitions, one was included in the IAN operating segment, and three were included in the Constituency Management Group ("CMG") operating segment. During the first half of 2016, we recorded approximately $75.7 of goodwill and intangible assets related to our acquisitions, primarily in CMG. The results of operations of our acquired companies were included in our consolidated results from the closing date of each acquisition. Details of cash paid for current and prior years' acquisitions are listed below.
| Six months ended June 30,
| 2017 |  | 2016
Cost of investment: current-year acquisitions | $ | 14.8 |  |  | $ | 36.5 |
Cost of investment: prior-year acquisitions | 37.1 |  |  | 29.7 |
Less: net cash acquired | (3.0 | ) |  | (2.7 | )
Total cost of investment | 48.9 |  |  | 63.5 |
Operating payments 1 | 34.7 |  |  | 17.4 |
Total cash paid for acquisitions 2 | $ | 83.6 |  |  | $ | 80.9 |
1 | Represents cash payments for amounts that have been recognized in operating expenses since the date of acquisition either relating to adjustments to estimates in excess of the initial value of contingent payments recorded or were contingent upon the future employment of the former owners of the acquired companies. Amounts are reflected in the operating section of the unaudited Consolidated Statements of Cash Flows.
2 | Of the total cash paid for acquisitions, $12.6 and $34.3 for the six months ended June 30, 2017 and 2016, respectively, are classified under the investing section of the unaudited Consolidated Statements of Cash Flows, as acquisitions, net of cash acquired. These amounts relate to initial payments for new transactions. Of the total cash paid for acquisitions, $36.3 and $29.2 for the six months ended June 30, 2017 and 2016, respectively, are classified under the financing section of the unaudited Consolidated Statements of Cash Flows as acquisition-related payments. These amounts relate to deferred payments and increases in our ownership interest for prior acquisitions.
Many of our acquisitions include provisions under which the noncontrolling equity owners may require us to purchase additional interests in a subsidiary at their discretion. Redeemable noncontrolling interests are adjusted quarterly to their estimated redemption value, but not less than their initial fair value. Any adjustments to the redemption value impact retained earnings, except for foreign currency translation adjustments. The following table presents changes in our redeemable noncontrolling interests.
| Six months ended June 30,
| 2017 |  | 2016
Balance at beginning of period | $ | 252.8 |  |  | $ | 251.9 |
Change in related noncontrolling interests balance | (6.5 | ) |  | (2.6 | )
Changes in redemption value of redeemable noncontrolling interests: |  |  |
Additions | 3.0 |  |  | 0.0 |
Redemptions and other | (13.2 | ) |  | (9.7 | )
Redemption value adjustments | 7.3 |  |  | 6.7 |
Balance at end of period | $ | 243.4 |  |  | $ | 246.3 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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