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Segment Information (Notes) | 6 Months Ended
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Jun. 30, 2023
Segment Reporting [Abstract] |
Segment Reporting Disclosure | Segment Information As of June 30, 2023, we have three reportable segments: MD&E, IA&C, and SC&E. We also report results for the "Corporate and other" group. MD&E primarily provides, and is distinguished by innovative capabilities and scale in, global media and communications services, digital services and products, advertising and marketing technology, e‐commerce services, data management and analytics, strategic consulting, and digital brand experience. MD&E is comprised of IPG Mediabrands and Acxiom, as well as our digital and commerce specialist agencies, which include MRM, R/GA, and Huge. IA&C primarily provides advertising, corporate and brand identity services, and strategic consulting. IA&C is distinguished by the leading role of complex integrations of ideation and the execution of advertising and creative campaigns across all communications channels that are foundational to client brand identities. IA&C is comprised of leading global networks and agencies that provide a broad range of services, including McCann Worldgroup, IPG Health, MullenLowe Group, Foote, Cone & Belding ("FCB"), and our domestic integrated agencies. SC&E primarily provides best-in-class global public relations and other specialized communications services, events, sports and entertainment marketing, and strategic consulting. SC&E is comprised of agencies that provide a range of marketing services expertise, including Weber Shandwick, Golin, our sports, entertainment, and experiential agencies, and DXTRA Health. In conjunction with the new reporting structure, prior period segment disclosures have been recast to reflect our new reportable segments, as well as the way performance is internally managed and monitored. We continue to evaluate our financial reporting structure, and the profitability measure employed by our chief operating decision maker for allocating resources to operating divisions and assessing operating division performance is segment EBITA. Summarized financial information concerning our reportable segments is shown in the following table.
| Three months ended June 30, |  | Six months ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Total revenue: |  |  |  |  |  |  |
MD&E | $ | 1,070.2 |  |  | $ | 1,089.0 |  |  | $ | 2,052.0 |  |  | $ | 2,085.8 |
IA&C | 1,010.6 |  |  | 1,055.8 |  |  | 1,974.7 |  |  | 2,068.4 |
SC&E | 585.7 |  |  | 590.9 |  |  | 1,160.8 |  |  | 1,150.0 |
Total | $ | 2,666.5 |  |  | $ | 2,735.7 |  |  | $ | 5,187.5 |  |  | $ | 5,304.2 |
Revenue before billable expenses: |  |  |  |  |  |  |
MD&E | $ | 1,055.5 |  |  | $ | 1,065.3 |  |  | $ | 2,016.3 |  |  | $ | 2,039.0 |
IA&C | 913.7 |  |  | 961.8 |  |  | 1,789.3 |  |  | 1,878.7 |
SC&E | 359.3 |  |  | 348.4 |  |  | 699.8 |  |  | 685.0 |
Total | $ | 2,328.5 |  |  | $ | 2,375.5 |  |  | $ | 4,505.4 |  |  | $ | 4,602.7 |
Restructuring 1: |  |  |  |  |  |  |
MD&E | $ | (1.2) |  |  | $ | — |  |  | $ | (1.2) |  |  | $ | (0.1) |
IA&C | — |  |  | (0.1) |  |  | 0.3 |  |  | 6.1 |
SC&E | (0.4) |  |  | — |  |  | 0.9 |  |  | 0.4 |
Corporate and Other | (0.1) |  |  | — |  |  | (0.1) |  |  | 0.1 |
Total | $ | (1.7) |  |  | $ | (0.1) |  |  | $ | (0.1) |  |  | $ | 6.5 |
Segment EBITA 2: |  |  |  |  |  |  |
MD&E | $ | 143.3 |  |  | $ | 168.9 |  |  | $ | 222.4 |  |  | $ | 280.7 |
IA&C | 132.3 |  |  | 162.9 |  |  | 231.1 |  |  | 282.9 |
SC&E | 71.3 |  |  | 59.4 |  |  | 116.5 |  |  | 115.5 |
Corporate and Other | (15.0) |  |  | (21.0) |  |  | (28.9) |  |  | (41.9) |
Total | $ | 331.9 |  |  | $ | 370.2 |  |  | $ | 541.1 |  |  | $ | 637.2 |
Amortization of acquired intangibles: |  |  |  |  |  |  |
MD&E | $ | 19.4 |  |  | $ | 17.8 |  |  | $ | 38.8 |  |  | $ | 35.7 |
IA&C | 1.2 |  |  | 2.3 |  |  | 2.1 |  |  | 4.7 |
SC&E | 0.6 |  |  | 1.0 |  |  | 1.2 |  |  | 2.0 |
Corporate and Other | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |
Total | $ | 21.2 |  |  | $ | 21.1 |  |  | $ | 42.1 |  |  | $ | 42.4 |
Depreciation and amortization 3: |  |  |  |  |  |  |
MD&E | $ | 26.9 |  |  | $ | 25.8 |  |  | $ | 53.2 |  |  | $ | 52.2 |
IA&C | 13.3 |  |  | 14.4 |  |  | 27.4 |  |  | 28.9 |
SC&E | 3.9 |  |  | 4.2 |  |  | 8.1 |  |  | 8.3 |
Corporate and Other | 1.2 |  |  | 1.6 |  |  | 2.2 |  |  | 3.1 |
Total | $ | 45.3 |  |  | $ | 46.0 |  |  | $ | 90.9 |  |  | $ | 92.5 |
Capital expenditures: |  |  |  |  |  |  |
MD&E | $ | 30.8 |  |  | $ | 21.6 |  |  | $ | 53.2 |  |  | $ | 37.6 |
IA&C | 7.1 |  |  | 10.9 |  |  | 8.9 |  |  | 16.9 |
SC&E | 1.5 |  |  | 2.5 |  |  | 2.0 |  |  | 3.3 |
Corporate and Other | 7.0 |  |  | 6.6 |  |  | 15.2 |  |  | 14.5 |
Total | $ | 46.4 |  |  | $ | 41.6 |  |  | $ | 79.3 |  |  | $ | 72.3 |
1 Non-cash lease impairment costs were comprised of ($1.2) at MD&E, ($0.2) at IA&C and ($1.0) at SC&E for the three months ended June 30, 2023. Non-cash lease impairment costs were comprised of ($1.3) at MD&E, ($0.2) at IA&C and $0.3 at SC&E for the six months ended June 30, 2023. Non-cash lease impairment costs were comprised of ($0.1) at MD&E, $5.2 at IA&C, and $0.2 at SC&E for the six months ended June 30, 2022. 2 Adjusted EBITA is calculated as net income available to IPG common stockholders before provision for income taxes, total (expenses) and other income, equity in net income of unconsolidated affiliates, net income attributable to non-controlling interests and amortization of acquired intangibles. 3 Excludes amortization of acquired intangibles.
| June 30, 2023 |  | December 31, 2022
Total assets: |  |  |
MD&E | $ | 9,388.1 |  |  | $ | 9,984.3 |
IA&C | 4,982.7 |  |  | 5,083.5 |
SC&E | 1,656.9 |  |  | 1,629.9 |
Corporate and Other | 1,082.3 |  |  | 2,147.3 |
Total | $ | 17,110.0 |  |  | $ | 18,845.0 |
The following table presents the reconciliation of segment EBITA to Income before income taxes.
| Three months ended June 30, |  | Six months ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
MD&E EBITA | $ | 143.3 |  |  | $ | 168.9 |  |  | $ | 222.4 |  |  | $ | 280.7 |
IA&C EBITA | 132.3 |  |  | 162.9 |  |  | 231.1 |  |  | 282.9 |
SC&E EBITA | 71.3 |  |  | 59.4 |  |  | 116.5 |  |  | 115.5 |
Corporate and Other EBITA | (15.0) |  |  | (21.0) |  |  | (28.9) |  |  | (41.9) |
Less: consolidated amortization of acquired intangibles | 21.2 |  |  | 21.1 |  |  | 42.1 |  |  | 42.4 |
Operating income | 310.7 |  |  | 349.1 |  |  | 499.0 |  |  | 594.8 |
Total (expenses) and other income | (32.1) |  |  | (34.3) |  |  | (54.4) |  |  | (70.1) |
Income before income taxes | $ | 278.6 |  |  | $ | 314.8 |  |  | $ | 444.6 |  |  | $ | 524.7 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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