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Revenue (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2018
Revenue from Contract with Customer [Abstract] |
Consolidated Statement of Operations | CONSOLIDATED STATEMENT OF OPERATIONS
| Three months ended September 30, 2017 |  | Nine months ended September 30, 2017
| As Revised 1 |  | ASC 606 Adjustments |  | As Adjusted |  | As Revised 1 |  | ASC 606 Adjustments |  | As Adjusted
REVENUE: |  |  |  |  |  |  |  |  |  |  |
Net revenue | $ | 1,796.6 |  |  | $ | 35.9 |  |  | $ | 1,832.5 |  |  | $ | 5,282.3 |  |  | $ | 60.1 |  |  | $ | 5,342.4 |
Billable expenses | 106.0 |  |  | 269.7 |  |  | 375.7 |  |  | 259.1 |  |  | 856.3 |  |  | 1,115.4 |
Total revenue | 1,902.6 |  |  | 305.6 |  |  | 2,208.2 |  |  | 5,541.4 |  |  | 916.4 |  |  | 6,457.8 |
OPERATING EXPENSES: |  |  |  |  |  |  |  |  |  |  |
Salaries and related expenses | 1,218.8 |  |  | — |  |  | 1,218.8 |  |  | 3,699.4 |  |  | — |  |  | 3,699.4 |
Office and other direct expenses | 302.9 |  |  | — |  |  | 302.9 |  |  | 934.0 |  |  | — |  |  | 934.0 |
Billable expenses | 106.0 |  |  | 269.7 |  |  | 375.7 |  |  | 259.1 |  |  | 856.3 |  |  | 1,115.4 |
Cost of services | 1,627.7 |  |  | 269.7 |  |  | 1,897.4 |  |  | 4,892.5 |  |  | 856.3 |  |  | 5,748.8 |
Selling, general and administrative expenses | 13.6 |  |  | — |  |  | 13.6 |  |  | 69.1 |  |  | — |  |  | 69.1 |
Depreciation and amortization | 42.2 |  |  | — |  |  | 42.2 |  |  | 124.5 |  |  | — |  |  | 124.5 |
Total operating expenses | 1,683.5 |  |  | 269.7 |  |  | 1,953.2 |  |  | 5,086.1 |  |  | 856.3 |  |  | 5,942.4 |
OPERATING INCOME | 219.1 |  |  | 35.9 |  |  | 255.0 |  |  | 455.3 |  |  | 60.1 |  |  | 515.4 |
EXPENSES AND OTHER INCOME: |  |  |  |  |  |  |  |  |  |  |
Interest expense | (21.0 | ) |  | — |  |  | (21.0 | ) |  | (67.6 | ) |  | — |  |  | (67.6 | )
Interest income | 4.1 |  |  | — |  |  | 4.1 |  |  | 14.0 |  |  | — |  |  | 14.0 |
Other expense, net | (9.9 | ) |  | — |  |  | (9.9 | ) |  | (24.5 | ) |  | — |  |  | (24.5 | )
Total (expenses) and other income | (26.8 | ) |  | — |  |  | (26.8 | ) |  | (78.1 | ) |  | — |  |  | (78.1 | )
Income before income taxes | 192.3 |  |  | 35.9 |  |  | 228.2 |  |  | 377.2 |  |  | 60.1 |  |  | 437.3 |
Provision for income taxes | 42.5 |  |  | 12.4 |  |  | 54.9 |  |  | 115.8 |  |  | 20.4 |  |  | 136.2 |
Income of consolidated companies | 149.8 |  |  | 23.5 |  |  | 173.3 |  |  | 261.4 |  |  | 39.7 |  |  | 301.1 |
Equity in net (loss) income of unconsolidated affiliates | (1.0 | ) |  | — |  |  | (1.0 | ) |  | 0.1 |  |  | — |  |  | 0.1 |
NET INCOME | 148.8 |  |  | 23.5 |  |  | 172.3 |  |  | 261.5 |  |  | 39.7 |  |  | 301.2 |
Net (income) loss attributable to noncontrolling interests | (2.6 | ) |  | — |  |  | (2.6 | ) |  | 0.9 |  |  | — |  |  | 0.9 |
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | 146.2 |  |  | $ | 23.5 |  |  | $ | 169.7 |  |  | $ | 262.4 |  |  | $ | 39.7 |  |  | $ | 302.1 |
Earnings per share available to IPG common stockholders: |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 0.38 |  |  | $ | 0.06 |  |  | $ | 0.44 |  |  | $ | 0.67 |  |  | $ | 0.10 |  |  | $ | 0.77 |
Diluted | $ | 0.37 |  |  | $ | 0.06 |  |  | $ | 0.43 |  |  | $ | 0.66 |  |  | $ | 0.10 |  |  | $ | 0.76 |
Weighted-average number of common shares outstanding: |  |  |  |  |  |  |  |  |  |  |
Basic | 389.5 |  |  | — |  |  | 389.5 |  |  | 391.2 |  |  | — |  |  | 391.2 |
Diluted | 397.2 |  |  | — |  |  | 397.2 |  |  | 398.6 |  |  | — |  |  | 398.6 |
Dividends declared per common share | $ | 0.18 |  |  |  |  | $ | 0.18 |  |  | $ | 0.54 |  |  |  |  | $ | 0.54 |
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
| Nine months ended September 30, 2017
| As Reported |  | ASC 606 Adjustments |  | As Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |
Net income | $ | 261.5 |  |  | $ | 39.7 |  |  | $ | 301.2 |
Adjustments to reconcile net income to net cash used in operating activities: |  |  |  |  |
Depreciation and amortization | 124.5 |  |  | — |  |  | 124.5 |
Provision for uncollectible receivables | 9.5 |  |  | — |  |  | 9.5 |
Amortization of restricted stock and other non-cash compensation | 59.8 |  |  | — |  |  | 59.8 |
Net amortization of bond discounts and deferred financing costs | 4.2 |  |  | — |  |  | 4.2 |
Deferred income tax provision | (1.6 | ) |  | 20.4 |  |  | 18.8 |
Net losses on sales of businesses | 20.9 |  |  | — |  |  | 20.9 |
Other | 16.1 |  |  | — |  |  | 16.1 |
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash: |  |  |  |  |
Accounts receivable | 875.8 |  |  | — |  |  | 875.8 |
Expenditures billable to clients | (165.9 | ) |  | 165.9 |  |  | — |
Accounts receivable, billable to clients | — |  |  | (166.9 | ) |  | (166.9 | )
Other current assets | (48.2 | ) |  | (15.7 | ) |  | (63.9 | )
Accounts payable | (986.4 | ) |  | 24.7 |  |  | (961.7 | )
Accrued liabilities | (287.8 | ) |  | — |  |  | (287.8 | )
Contract liabilities | — |  |  | (68.1 | ) |  | (68.1 | )
Other non-current assets and liabilities | (21.4 | ) |  | — |  |  | (21.4 | )
Net cash used in operating activities | (139.0 | ) |  | — |  |  | (139.0 | )
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |
Net cash used in investing activities | (140.5 | ) |  | — |  |  | (140.5 | )
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |
Net cash used in financing activities | (113.1 | ) |  | — |  |  | (113.1 | )
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0.4 |  |  | — |  |  | 0.4 |
Net decrease in cash, cash equivalents and restricted cash | (392.2 | ) |  | — |  |  | (392.2 | )
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 | $ | 708.0 |  |  | $ | — |  |  | $ | 708.0 |
Disaggregation of Revenue Principal Geographic Markets |
| Three months ended September 30, |  | Nine months ended September 30,
Total revenue: | 2018 |  | 2017 |  | 2018 |  | 2017
United States | $ | 1,407.1 |  |  | $ | 1,340.8 |  |  | $ | 4,203.5 |  |  | $ | 4,006.8 |
International: |  |  |  |  |  |  |
United Kingdom | 220.9 |  |  | 201.7 |  |  | 626.9 |  |  | 542.7 |
Continental Europe | 177.5 |  |  | 171.6 |  |  | 564.3 |  |  | 506.1 |
Asia Pacific | 267.3 |  |  | 259.9 |  |  | 803.0 |  |  | 740.7 |
Latin America | 95.3 |  |  | 94.9 |  |  | 267.8 |  |  | 265.2 |
Other | 129.4 |  |  | 139.3 |  |  | 392.9 |  |  | 396.3 |
Total International | 890.4 |  |  | 867.4 |  |  | 2,654.9 |  |  | 2,451.0 |
Total Consolidated | $ | 2,297.5 |  |  | $ | 2,208.2 |  |  | $ | 6,858.4 |  |  | $ | 6,457.8 |
| Three months ended September 30, |  | Nine months ended September 30,
Net revenue: | 2018 |  | 2017 |  | 2018 |  | 2017
United States | $ | 1,160.9 |  |  | $ | 1,109.6 |  |  | $ | 3,424.7 |  |  | $ | 3,294.3 |
International: |  |  |  |  |  |  |
United Kingdom | 174.0 |  |  | 160.0 |  |  | 513.2 |  |  | 436.9 |
Continental Europe | 152.0 |  |  | 150.7 |  |  | 489.4 |  |  | 446.2 |
Asia Pacific | 210.6 |  |  | 203.7 |  |  | 603.6 |  |  | 582.7 |
Latin America | 84.0 |  |  | 86.9 |  |  | 239.9 |  |  | 241.6 |
Other | 114.2 |  |  | 121.6 |  |  | 347.1 |  |  | 340.7 |
Total International | 734.8 |  |  | 722.9 |  |  | 2,193.2 |  |  | 2,048.1 |
Total Consolidated | $ | 1,895.7 |  |  | $ | 1,832.5 |  |  | $ | 5,617.9 |  |  | $ | 5,342.4 |
IAN | Three months ended September 30, |  | Nine months ended September 30,
Total revenue: | 2018 |  | 2017 |  | 2018 |  | 2017
United States | $ | 1,064.2 |  |  | $ | 1,006.2 |  |  | $ | 3,150.6 |  |  | $ | 2,998.4 |
International | 710.5 |  |  | 696.6 |  |  | 2,122.1 |  |  | 1,983.5 |
Total IAN | $ | 1,774.7 |  |  | $ | 1,702.8 |  |  | $ | 5,272.7 |  |  | $ | 4,981.9 |
Net revenue: |  |  |  |  |  |  |
United States | $ | 952.9 |  |  | $ | 913.1 |  |  | $ | 2,814.2 |  |  | $ | 2,701.4 |
International | 627.6 |  |  | 618.3 |  |  | 1,876.7 |  |  | 1,755.1 |
Total IAN | $ | 1,580.5 |  |  | $ | 1,531.4 |  |  | $ | 4,690.9 |  |  | $ | 4,456.5 |
CMG | Three months ended September 30, |  | Nine months ended September 30,
Total revenue: | 2018 |  | 2017 |  | 2018 |  | 2017
United States | $ | 342.9 |  |  | $ | 334.6 |  |  | $ | 1,052.9 |  |  | $ | 1,008.4 |
International | 179.9 |  |  | 170.8 |  |  | 532.8 |  |  | 467.5 |
Total CMG | $ | 522.8 |  |  | $ | 505.4 |  |  | $ | 1,585.7 |  |  | $ | 1,475.9 |
Net revenue: |  |  |  |  |  |  |
United States | $ | 208.0 |  |  | $ | 196.5 |  |  | $ | 610.5 |  |  | $ | 592.9 |
International | 107.2 |  |  | 104.6 |  |  | 316.5 |  |  | 293.0 |
Total CMG | $ | 315.2 |  |  | $ | 301.1 |  |  | $ | 927.0 |  |  | $ | 885.9 |
Contract Balances |
| September 30, 2018 |  | December 31, 2017
Accounts receivable, net of allowance of $46.5 and $42.7, respectively | $ | 4,009.1 |  |  | $ | 4,585.0 |
Accounts receivable, billable to clients | 1,995.9 |  |  | 1,747.4 |
Contract assets | 57.8 |  |  | 11.5 |
Contract liabilities (deferred revenue) | 514.4 |  |  | 484.7 |

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