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Revenue (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2018
Revenue from Contract with Customer [Abstract] |
Consolidated Statement of Operations | CONSOLIDATED STATEMENT OF OPERATIONS
| Three months ended June 30, 2017 |  | Six months ended June 30, 2017
| As Revised 1 |  | ASC 606 Adjustments |  | As Adjusted |  | As Revised 1 |  | ASC 606 Adjustments |  | As Adjusted
REVENUE: |  |  |  |  |  |  |  |  |  |  |
Net revenue | $ | 1,815.4 |  |  | $ | 19.2 |  |  | $ | 1,834.6 |  |  | $ | 3,485.7 |  |  | $ | 24.2 |  |  | $ | 3,509.9 |
Billable expenses | 69.5 |  |  | 281.7 |  |  | 351.2 |  |  | 153.1 |  |  | 586.6 |  |  | 739.7 |
Total revenue | 1,884.9 |  |  | 300.9 |  |  | 2,185.8 |  |  | 3,638.8 |  |  | 610.8 |  |  | 4,249.6 |
OPERATING EXPENSES: |  |  |  |  |  |  |  |  |  |  |
Salaries and related expenses | 1,228.9 |  |  | — |  |  | 1,228.9 |  |  | 2,480.6 |  |  | — |  |  | 2,480.6 |
Office and other direct expenses | 318.4 |  |  | — |  |  | 318.4 |  |  | 631.1 |  |  | — |  |  | 631.1 |
Billable expenses | 69.5 |  |  | 281.7 |  |  | 351.2 |  |  | 153.1 |  |  | 586.6 |  |  | 739.7 |
Cost of services | 1,616.8 |  |  | 281.7 |  |  | 1,898.5 |  |  | 3,264.8 |  |  | 586.6 |  |  | 3,851.4 |
Selling, general and administrative expenses | 20.3 |  |  | — |  |  | 20.3 |  |  | 55.5 |  |  | — |  |  | 55.5 |
Depreciation and amortization | 41.3 |  |  | — |  |  | 41.3 |  |  | 82.3 |  |  | — |  |  | 82.3 |
Total operating expenses | 1,678.4 |  |  | 281.7 |  |  | 1,960.1 |  |  | 3,402.6 |  |  | 586.6 |  |  | 3,989.2 |
OPERATING INCOME | 206.5 |  |  | 19.2 |  |  | 225.7 |  |  | 236.2 |  |  | 24.2 |  |  | 260.4 |
EXPENSES AND OTHER INCOME: |  |  |  |  |  |  |  |  |  |  |
Interest expense | (25.7 | ) |  | — |  |  | (25.7 | ) |  | (46.6 | ) |  | — |  |  | (46.6 | )
Interest income | 4.7 |  |  | — |  |  | 4.7 |  |  | 9.9 |  |  | — |  |  | 9.9 |
Other income, net | (15.4 | ) |  | — |  |  | (15.4 | ) |  | (14.6 | ) |  | — |  |  | (14.6 | )
Total (expenses) and other income | (36.4 | ) |  | — |  |  | (36.4 | ) |  | (51.3 | ) |  | — |  |  | (51.3 | )
Income before income taxes | 170.1 |  |  | 19.2 |  |  | 189.3 |  |  | 184.9 |  |  | 24.2 |  |  | 209.1 |
Benefit of income taxes | 75.4 |  |  | 6.2 |  |  | 81.6 |  |  | 73.3 |  |  | 8.0 |  |  | 81.3 |
Income of consolidated companies | 94.7 |  |  | 13.0 |  |  | 107.7 |  |  | 111.6 |  |  | 16.2 |  |  | 127.8 |
Equity in net (loss) income of unconsolidated affiliates | (0.1 | ) |  | — |  |  | (0.1 | ) |  | 1.1 |  |  | — |  |  | 1.1 |
NET INCOME | 94.6 |  |  | 13.0 |  |  | 107.6 |  |  | 112.7 |  |  | 16.2 |  |  | 128.9 |
Net loss attributable to noncontrolling interests | 0.1 |  |  | — |  |  | 0.1 |  |  | 3.5 |  |  | — |  |  | 3.5 |
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | 94.7 |  |  | $ | 13.0 |  |  | $ | 107.7 |  |  | $ | 116.2 |  |  | $ | 16.2 |  |  | $ | 132.4 |
Earnings per share available to IPG common stockholders: |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 0.24 |  |  | $ | 0.03 |  |  | $ | 0.27 |  |  | $ | 0.30 |  |  | $ | 0.04 |  |  | $ | 0.34 |
Diluted | $ | 0.24 |  |  | $ | 0.03 |  |  | $ | 0.27 |  |  | $ | 0.29 |  |  | $ | 0.04 |  |  | $ | 0.33 |
Weighted-average number of common shares outstanding: |  |  |  |  |  |  |  |  |  |  |
Basic | 392.3 |  |  | — |  |  | 392.3 |  |  | 392.0 |  |  | — |  |  | 392.0 |
Diluted | 400.3 |  |  | — |  |  | 400.3 |  |  | 399.6 |  |  | — |  |  | 399.6 |
Dividends declared per common share | $ | 0.18 |  |  |  |  | $ | 0.18 |  |  | $ | 0.36 |  |  |  |  | $ | 0.36 |
1 | These amounts have been revised for the new presentation as described in Note 1.
Condensed Balance Sheet | CONSOLIDATED BALANCE SHEET
| 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
| Six months ended June 30, 2017
| As Reported |  | ASC 606 Adjustments |  | As Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |
Net income | $ | 112.7 |  |  | $ | 16.2 |  |  | $ | 128.9 |
Adjustments to reconcile net income to net cash used in operating activities: |  |  |  |  |
Depreciation and amortization | 82.3 |  |  | — |  |  | 82.3 |
Provision for uncollectible receivables | 8.6 |  |  | — |  |  | 8.6 |
Amortization of restricted stock and other non-cash compensation | 46.0 |  |  | — |  |  | 46.0 |
Net amortization of bond discounts and deferred financing costs | 2.8 |  |  | — |  |  | 2.8 |
Deferred income tax provision | 1.5 |  |  | 8.0 |  |  | 9.5 |
Net losses on sales of businesses | 12.2 |  |  | — |  |  | 12.2 |
Other | 10.2 |  |  | — |  |  | 10.2 |
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash: |  |  |  |  |
Accounts receivable | 769.7 |  |  | — |  |  | 769.7 |
Expenditures billable to clients | (165.3 | ) |  | 165.3 |  |  | — |
Accounts receivable, billable to clients | — |  |  | (165.5 | ) |  | (165.5 | )
Other current assets | (82.0 | ) |  | (2.5 | ) |  | (84.5 | )
Accounts payable | (622.9 | ) |  | (28.4 | ) |  | (651.3 | )
Accrued liabilities | (313.9 | ) |  | — |  |  | (313.9 | )
Contract liabilities | — |  |  | 6.9 |  |  | 6.9 |
Other non-current assets and liabilities | (15.0 | ) |  | — |  |  | (15.0 | )
Net cash used in operating activities | (153.1 | ) |  | — |  |  | (153.1 | )
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |
Net cash used in investing activities | (96.0 | ) |  | — |  |  | (96.0 | )
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |
Net cash used in financing activities | (199.4 | ) |  | — |  |  | (199.4 | )
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 8.2 |  |  | — |  |  | 8.2 |
Net decrease in cash, cash equivalents and restricted cash | (440.3 | ) |  | — |  |  | (440.3 | )
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 | $ | 659.9 |  |  | $ | — |  |  | $ | 659.9 |
Disaggregation of Revenue Principal Geographic Markets |
| Three months ended June 30, |  | Six months ended June 30,
Total revenue: | 2018 |  | 2017 |  | 2018 |  | 2017
United States | $ | 1,445.7 |  |  | $ | 1,350.8 |  |  | $ | 2,796.4 |  |  | $ | 2,666.0 |
International: |  |  |  |  |  |  |
United Kingdom | 201.6 |  |  | 166.0 |  |  | 406.0 |  |  | 341.0 |
Continental Europe | 205.1 |  |  | 176.3 |  |  | 386.8 |  |  | 334.5 |
Asia Pacific | 304.2 |  |  | 260.5 |  |  | 535.7 |  |  | 480.8 |
Latin America | 92.5 |  |  | 94.5 |  |  | 172.5 |  |  | 170.3 |
Other | 142.7 |  |  | 137.7 |  |  | 263.5 |  |  | 257.0 |
Total International | 946.1 |  |  | 835.0 |  |  | 1,764.5 |  |  | 1,583.6 |
Total Consolidated | $ | 2,391.8 |  |  | $ | 2,185.8 |  |  | $ | 4,560.9 |  |  | $ | 4,249.6 |
| Three months ended June 30, |  | Six months ended June 30,
Net revenue: | 2018 |  | 2017 |  | 2018 |  | 2017
United States | $ | 1,171.5 |  |  | $ | 1,127.6 |  |  | $ | 2,263.8 |  |  | $ | 2,184.7 |
International: |  |  |  |  |  |  |
United Kingdom | 175.7 |  |  | 141.7 |  |  | 339.2 |  |  | 276.9 |
Continental Europe | 178.7 |  |  | 154.6 |  |  | 337.4 |  |  | 295.5 |
Asia Pacific | 214.2 |  |  | 205.3 |  |  | 393.0 |  |  | 379.0 |
Latin America | 82.0 |  |  | 85.7 |  |  | 155.9 |  |  | 154.7 |
Other | 126.1 |  |  | 119.7 |  |  | 232.9 |  |  | 219.1 |
Total International | 776.7 |  |  | 707.0 |  |  | 1,458.4 |  |  | 1,325.2 |
Total Consolidated | $ | 1,948.2 |  |  | $ | 1,834.6 |  |  | $ | 3,722.2 |  |  | $ | 3,509.9 |
IAN | Three months ended June 30, |  | Six months ended June 30,
Total revenue: | 2018 |  | 2017 |  | 2018 |  | 2017
United States | $ | 1,063.2 |  |  | $ | 1,022.3 |  |  | $ | 2,086.4 |  |  | $ | 1,992.2 |
International | 749.3 |  |  | 689.0 |  |  | 1,411.6 |  |  | 1,286.9 |
Total IAN | $ | 1,812.5 |  |  | $ | 1,711.3 |  |  | $ | 3,498.0 |  |  | $ | 3,279.1 |
Net revenue: |  |  |  |  |  |  |
United States | $ | 963.3 |  |  | $ | 926.3 |  |  | $ | 1,861.3 |  |  | $ | 1,788.3 |
International | 665.8 |  |  | 607.7 |  |  | 1,249.1 |  |  | 1,136.8 |
Total IAN | $ | 1,629.1 |  |  | $ | 1,534.0 |  |  | $ | 3,110.4 |  |  | $ | 2,925.1 |
CMG | Three months ended June 30, |  | Six months ended June 30,
Total revenue: | 2018 |  | 2017 |  | 2018 |  | 2017
United States | $ | 382.5 |  |  | $ | 328.5 |  |  | $ | 710.0 |  |  | $ | 673.8 |
International | 196.8 |  |  | 146.0 |  |  | 352.9 |  |  | 296.7 |
Total CMG | $ | 579.3 |  |  | $ | 474.5 |  |  | $ | 1,062.9 |  |  | $ | 970.5 |
Net revenue: |  |  |  |  |  |  |
United States | $ | 208.2 |  |  | $ | 201.3 |  |  | $ | 402.5 |  |  | $ | 396.4 |
International | 110.9 |  |  | 99.3 |  |  | 209.3 |  |  | 188.4 |
Total CMG | $ | 319.1 |  |  | $ | 300.6 |  |  | $ | 611.8 |  |  | $ | 584.8 |
Contract Balances |
| June 30, 2018 |  | December 31, 2017
Accounts receivable, net of allowance of $44.5 and $42.7, respectively | $ | 4,247.7 |  |  | $ | 4,585.0 |
Accounts receivable, billable to clients | 1,945.8 |  |  | 1,747.4 |
Contract assets | 44.9 |  |  | 11.5 |
Contract liabilities (deferred revenue) | 510.8 |  |  | 484.7 |

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