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Revenue (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2018
Revenue from Contract with Customer [Abstract] |
Consolidated Statement of Operations | CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
| Three months ended March 31, 2017
| As Revised 1 |  | ASC 606 Adjustments |  | As Adjusted
REVENUE: |  |  |  |  |
Net revenue | $ | 1,670.3 |  |  | $ | 5.0 |  |  | $ | 1,675.3 |
Billable expenses | 83.6 |  |  | 304.9 |  |  | 388.5 |
Total revenue | 1,753.9 |  |  | 309.9 |  |  | 2,063.8 |
OPERATING EXPENSES: |  |  |  |  |
Salaries and related expenses | 1,251.7 |  |  | — |  |  | 1,251.7 |
Office and other direct expenses | 312.7 |  |  | — |  |  | 312.7 |
Billable expenses | 83.6 |  |  | 304.9 |  |  | 388.5 |
Cost of services | 1,648.0 |  |  | 304.9 |  |  | 1,952.9 |
Selling, general and administrative expenses | 35.2 |  |  | — |  |  | 35.2 |
Depreciation and amortization | 41.0 |  |  | — |  |  | 41.0 |
Total operating expenses | 1,724.2 |  |  | 304.9 |  |  | 2,029.1 |
OPERATING INCOME | 29.7 |  |  | 5.0 |  |  | 34.7 |
EXPENSES AND OTHER INCOME: |  |  |  |  |
Interest expense | (20.9 | ) |  | — |  |  | (20.9 | )
Interest income | 5.2 |  |  | — |  |  | 5.2 |
Other income, net | 0.8 |  |  | — |  |  | 0.8 |
Total (expenses) and other income | (14.9 | ) |  | — |  |  | (14.9 | )
Income before income taxes | 14.8 |  |  | 5.0 |  |  | 19.8 |
Benefit of income taxes | (2.1 | ) |  | 1.8 |  |  | (0.3 | )
Income of consolidated companies | 16.9 |  |  | 3.2 |  |  | 20.1 |
Equity in net income of unconsolidated affiliates | 1.2 |  |  | — |  |  | 1.2 |
NET INCOME | 18.1 |  |  | 3.2 |  |  | 21.3 |
Net loss attributable to noncontrolling interests | 3.4 |  |  | — |  |  | 3.4 |
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | 21.5 |  |  | $ | 3.2 |  |  | $ | 24.7 |
Earnings per share available to IPG common stockholders: |  |  |  |  |
Basic | $ | 0.05 |  |  | $ | 0.01 |  |  | $ | 0.06 |
Diluted | $ | 0.05 |  |  | $ | 0.01 |  |  | $ | 0.06 |
Weighted-average number of common shares outstanding: |  |  |  |  |
Basic | 391.7 |  |  | — |  |  | 391.7 |
Diluted | 399.3 |  |  | — |  |  | 399.3 |
Dividends declared per common share | $ | 0.18 |  |  |  |  | $ | 0.18 |
Condensed Balance Sheet | CONSOLIDATED BALANCE SHEET (Unaudited)
| December 31, 2017
| As Reported |  | ASC 606 Adjustments |  | As Adjusted
ASSETS: |  |  |  |  |
Cash and cash equivalents | $ | 790.9 |  |  | $ | — |  |  | $ | 790.9 |
Accounts receivable, net of allowance of $42.7 | 4,585.0 |  |  | — |  |  | 4,585.0 |
Expenditures billable to clients | 1,747.4 |  |  | (1,747.4 | ) |  | — |
Accounts receivable, billable to clients | — |  |  | 1,747.4 |  |  | 1,747.4 |
Assets held for sale | 5.7 |  |  | — |  |  | 5.7 |
Other current assets | 335.1 |  |  | 11.4 |  |  | 346.5 |
Total current assets | 7,464.1 |  |  | 11.4 |  |  | 7,475.5 |
Property and equipment, net of accumulated depreciation of $1,036.2 | 650.4 |  |  | — |  |  | 650.4 |
Deferred income taxes | 236.0 |  |  | (2.0 | ) |  | 234.0 |
Goodwill | 3,820.4 |  |  | — |  |  | 3,820.4 |
Other non-current assets | 524.3 |  |  | 0.1 |  |  | 524.4 |
TOTAL ASSETS | $ | 12,695.2 |  |  | $ | 9.5 |  |  | $ | 12,704.7 |
LIABILITIES: |  |  |  |  |
Accounts payable | $ | 6,907.8 |  |  | $ | (487.6 | ) |  | $ | 6,420.2 |
Accrued liabilities | 674.7 |  |  | — |  |  | 674.7 |
Contract liabilities | — |  |  | 484.7 |  |  | 484.7 |
Short-term borrowings | 84.9 |  |  | — |  |  | 84.9 |
Current portion of long-term debt | 2.0 |  |  | — |  |  | 2.0 |
Liabilities held for sale | 8.8 |  |  | — |  |  | 8.8 |
Total current liabilities | 7,678.2 |  |  | (2.9 | ) |  | 7,675.3 |
Long-term debt | 1,285.6 |  |  | — |  |  | 1,285.6 |
Deferred compensation | 476.6 |  |  | — |  |  | 476.6 |
Other non-current liabilities | 766.9 |  |  | 1.9 |  |  | 768.8 |
TOTAL LIABILITIES | 10,207.3 |  |  | (1.0 | ) |  | 10,206.3 |
Redeemable noncontrolling interests | 252.1 |  |  | — |  |  | 252.1 |
STOCKHOLDERS’ EQUITY: |  |  |  |  |
Common stock | 38.6 |  |  | — |  |  | 38.6 |
Additional paid-in capital | 955.2 |  |  | — |  |  | 955.2 |
Retained earnings | 2,093.6 |  |  | 10.9 |  |  | 2,104.5 |
Accumulated other comprehensive loss, net of tax | (827.4 | ) |  | (0.4 | ) |  | (827.8 | )
| 2,260.0 |  |  | 10.5 |  |  | 2,270.5 |
Less: Treasury stock | (59.0 | ) |  | — |  |  | (59.0 | )
Total IPG stockholders’ equity | 2,201.0 |  |  | 10.5 |  |  | 2,211.5 |
Noncontrolling interests | 34.8 |  |  | — |  |  | 34.8 |
TOTAL STOCKHOLDERS’ EQUITY | 2,235.8 |  |  | 10.5 |  |  | 2,246.3 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 12,695.2 |  |  | $ | 9.5 |  |  | $ | 12,704.7 |
Condensed Statements of Cash Flows | CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
| Three months ended March 31, 2017
| As Reported |  | ASC 606 Adjustments |  | As Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |
Net income | $ | 18.1 |  |  | 3.2 |  |  | $ | 21.3 |
Adjustments to reconcile net income to net cash used in operating activities: |  |  |  |  |
Depreciation and amortization | 41.0 |  |  | — |  |  | 41.0 |
Provision for uncollectible receivables | 5.9 |  |  | — |  |  | 5.9 |
Amortization of restricted stock and other non-cash compensation | 29.7 |  |  | — |  |  | 29.7 |
Net amortization of bond discounts and deferred financing costs | 1.4 |  |  | — |  |  | 1.4 |
Deferred income tax benefit | (13.8 | ) |  | 1.8 |  |  | (12.0 | )
Net gains on sales of businesses | (0.9 | ) |  | — |  |  | (0.9 | )
Other | 6.7 |  |  | — |  |  | 6.7 |
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash: |  |  |  |  |
Accounts receivable | 806.6 |  |  | — |  |  | 806.6 |
Expenditures billable to clients | (206.3 | ) |  | 206.3 |  |  | — |
Accounts receivable, billable to clients | — |  |  | (206.5 | ) |  | (206.5 | )
Other current assets | (71.6 | ) |  | 3.0 |  |  | (68.6 | )
Accounts payable | (702.5 | ) |  | (24.0 | ) |  | (726.5 | )
Accrued liabilities | (264.9 | ) |  | — |  |  | (264.9 | )
Contract liabilities | — |  |  | 16.2 |  |  | 16.2 |
Other non-current assets and liabilities | (21.2 | ) |  | — |  |  | (21.2 | )
Net cash used in operating activities | (371.8 | ) |  | — |  |  | (371.8 | )
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |
Net cash used in investing activities | (33.2 | ) |  | — |  |  | (33.2 | )
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |
Net cash provided by financing activities | 64.4 |  |  | — |  |  | 64.4 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 20.0 |  |  | — |  |  | 20.0 |
Net decrease in cash, cash equivalents and restricted cash | (320.6 | ) |  | — |  |  | (320.6 | )
Cash, cash equivalents and restricted cash at beginning of period | 1,100.2 |  |  | — |  |  | 1,100.2 |
Cash, cash equivalents and restricted cash at end of period | $ | 779.6 |  |  | — |  |  | $ | 779.6 |
Disaggregation of Revenue Principal Activities |
Disaggregation of Revenue Principal Geographic Markets |
| Three months ended March 31,
Total revenue: | 2018 |  | 2017
United States | $ | 1,350.7 |  |  | $ | 1,315.2 |
International: |  |  |
United Kingdom | 204.4 |  |  | 175.0 |
Continental Europe | 181.7 |  |  | 158.2 |
Asia Pacific | 231.5 |  |  | 220.3 |
Latin America | 80.0 |  |  | 75.8 |
Other | 120.8 |  |  | 119.3 |
Total International | 818.4 |  |  | 748.6 |
Total Consolidated | $ | 2,169.1 |  |  | $ | 2,063.8 |
| Three months ended March 31,
Net revenue: | 2018 |  | 2017
United States | $ | 1,092.3 |  |  | $ | 1,057.1 |
International: |  |  |
United Kingdom | 163.5 |  |  | 135.2 |
Continental Europe | 158.7 |  |  | 140.9 |
Asia Pacific | 178.8 |  |  | 173.7 |
Latin America | 73.9 |  |  | 69.0 |
Other | 106.8 |  |  | 99.4 |
Total International | 681.7 |  |  | 618.2 |
Total Consolidated | $ | 1,774.0 |  |  | $ | 1,675.3 |
IAN | Three months ended March 31,
Total revenue: | 2018 |  | 2017
United States | $ | 1,023.2 |  |  | $ | 969.9 |
International | 662.3 |  |  | 597.9 |
Total IAN | $ | 1,685.5 |  |  | $ | 1,567.8 |
Net revenue: |  |  |
United States | $ | 898.0 |  |  | $ | 862.0 |
International | 583.3 |  |  | 529.1 |
Total IAN | $ | 1,481.3 |  |  | $ | 1,391.1 |
CMG | Three months ended March 31,
Total revenue: | 2018 |  | 2017
United States | $ | 327.5 |  |  | $ | 345.3 |
International | 156.1 |  |  | 150.7 |
Total CMG | $ | 483.6 |  |  | $ | 496.0 |
Net revenue: |  |  |
United States | $ | 194.3 |  |  | $ | 195.1 |
International | 98.4 |  |  | 89.1 |
Total CMG | $ | 292.7 |  |  | $ | 284.2 |
Contract Balances |
| March 31, 2018 |  | December 31, 2017
Accounts receivable, net of allowance of $43.1 and $42.7, respectively | $ | 3,942.5 |  |  | $ | 4,585.0 |
Accounts receivable, billable to clients | 1,981.1 |  |  | 1,747.4 |
Contract assets | 26.6 |  |  | 11.5 |
Contract liabilities (deferred revenue) | 507.5 |  |  | 484.7 |

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