Segment Information

As of December 31, 2018, we have two reportable segments: IAN and CMG. IAN is comprised of McCann Worldgroup, Foote, Cone & Belding ("FCB"), MullenLowe Group, IPG Mediabrands, our digital specialist agencies and our domestic integrated agencies. CMG is comprised of a number of our specialist marketing services offerings. We also report results for the "Corporate and other" group.

Within IAN, our agencies provide a comprehensive array of global communications and marketing services, each offering a range of solutions for our clients. Our digital specialist agencies provide digital capabilities and serve as key digital partners. In addition, our domestic integrated agencies, including Hill Holliday, Carmichael Lynch and Tierney, provide a full range of advertising, marketing communications services and/or marketing services and partner with our global operating divisions as needed. IAN’s operating divisions share similar economic characteristics and are similar in other areas, specifically related to the nature of their services, the manner in which the services are provided and the similarity of their respective customers.

CMG, which includes Weber Shandwick, DeVries, Golin, FutureBrand, Jack Morton and Octagon Worldwide, provides clients with diversified services, including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. CMG shares some similarities with service lines offered by IAN; however, on an aggregate basis, CMG has a higher proportion of arrangements for which they act as principal.

The profitability measure employed by our chief operating decision maker for allocating resources to operating divisions and assessing operating division performance is operating income (loss). All segments follow the same accounting policies as those described in Note 1.

Corporate and other is primarily comprised of selling, general and administrative expenses as well as three months of results from Acxiom in 2018. Selling, general and administrative expenses includes corporate office expenses as well as shared service center and certain other centrally managed expenses that are not fully allocated to operating divisions; salaries, long-term incentives, annual bonuses and other miscellaneous benefits for corporate office employees; professional fees related to internal control compliance, financial statement audits and legal, information technology and other consulting services that are engaged and managed through the corporate office; and rental expense for properties occupied by corporate office employees. A portion of centrally managed expenses is allocated to operating divisions based on a formula that uses the planned revenues of each of the operating units. Amounts allocated also include specific charges for information technology-related projects, which are allocated based on utilization.

Summarized financial information concerning our reportable segments is shown in the following tables.



	Years ended December 31,
	2018			2017			2016
Total Revenue:
IAN	$	7,374.4		$	7,009.6		$	6,992.8
CMG	2,158.3			2,038.0			2,063.4
Corporate and other ¹	181.7			—			—
Total	$	9,714.4		$	9,047.6		$	9,056.2

Net revenue:
IAN	$	6,585.8		$	6,266.7		$	6,201.4
CMG	1,264.1			1,206.8			1,250.9
Corporate and other ¹	181.7			—			—
Total	$	8,031.6		$	7,473.5		$	7,452.3

Segment operating income (loss):
IAN	$	982.8		$	875.1		$	894.3
CMG	175.0			189.9			189.3
Corporate and other	(149.0		)	(126.6		)	(147.2		)
Total	1,008.8			938.4			936.4

Interest expense	(123.0		)	(90.8		)	(90.6		)
Interest income	21.8			19.4			20.1
Other expense, net	(69.6		)	(26.2		)	(40.3		)
Income before income taxes	$	838.0		$	840.8		$	825.6

Depreciation and amortization
IAN	$	142.8		$	125.5		$	129.2
CMG	24.3			23.5			22.4
Corporate and other	35.8			8.1			8.6
Total	$	202.9		$	157.1		$	160.2

Capital expenditures:
IAN	$	128.5		$	112.0		$	149.2
CMG	13.0			17.7			16.6
Corporate and other	35.6			26.2			34.9
Total	$	177.1		$	155.9		$	200.7



	December 31,
	2018		2017
Total assets:
IAN	$	11,446.2	$	10,978.0
CMG	1,516.7		1,427.4
Corporate and other ²	2,657.4		299.3
Total	$	15,620.3	$	12,704.7

¹ Revenue is from Acxiom which was acquired on October 1, 2018. See Note 6 for further detail on the acquisition.

² Includes $2,421.7 of assets held at Acxiom. See Note 6 for further detail on the acquisition.

Net revenue and long-lived assets, excluding intangible assets, are presented by major geographic area in the following table.



	Net Revenue						Long-Lived Assets
	Years ended December 31,						December 31,
	2018		2017		2016		2018		2017
Domestic	$	4,825.0	$	4,458.8	$	4,443.2	$	892.9	$	694.5
International:
United Kingdom	711.7		613.1		604.3		57.9		56.2
Continental Europe	737.5		687.8		682.0		57.9		73.6
Asia Pacific	896.8		866.9		887.7		121.7		115.5
Latin America	350.1		350.8		367.8		43.6		48.2
Other	510.5		496.1		467.3		45.7		46.1
Total International	3,206.6		3,014.7		3,009.1		326.8		339.6
Total Consolidated	$	8,031.6	$	7,473.5	$	7,452.3	$	1,219.7	$	1,034.1

Net revenue is primarily attributed to geographic areas based on where the services are performed. Property and equipment are allocated based upon physical location. Other assets and investments are allocated based on the location of the related operations.