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Segment Information (Notes) | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Segment Reporting Disclosure | Segment Information As of June 30, 2024, 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 IPG DXTRA Health. Certain prior period amounts, wherever applicable, have been recast to reflect the transfer of certain agencies between our reportable segments. 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,
| 2024 |  | 2023 |  | 2024 |  | 2023
Total revenue: |  |  |  |  |  |  |
MD&E | $ | 1,075.4 |  |  | $ | 1,075.8 |  |  | $ | 2,048.7 |  |  | $ | 2,062.7 |
IA&C | 999.4 |  |  | 1,005.0 |  |  | 1,963.2 |  |  | 1,964.0 |
SC&E | 635.2 |  |  | 585.7 |  |  | 1,194.0 |  |  | 1,160.8 |
Total | $ | 2,710.0 |  |  | $ | 2,666.5 |  |  | $ | 5,205.9 |  |  | $ | 5,187.5 |
Revenue before billable expenses: |  |  |  |  |  |  |
MD&E | $ | 1,063.5 |  |  | $ | 1,060.9 |  |  | $ | 2,024.8 |  |  | $ | 2,026.8 |
IA&C | 910.1 |  |  | 908.3 |  |  | 1,791.5 |  |  | 1,778.8 |
SC&E | 353.5 |  |  | 359.3 |  |  | 693.7 |  |  | 699.8 |
Total | $ | 2,327.1 |  |  | $ | 2,328.5 |  |  | $ | 4,510.0 |  |  | $ | 4,505.4 |
Restructuring 1: |  |  |  |  |  |  |
MD&E | $ | 0.3 |  |  | $ | (1.2) |  |  | $ | 0.3 |  |  | $ | (1.2) |
IA&C | — |  |  | — |  |  | 0.3 |  |  | 0.3 |
SC&E | — |  |  | (0.4) |  |  | 0.3 |  |  | 0.9 |
Corporate and Other | — |  |  | (0.1) |  |  | — |  |  | (0.1) |
Total | $ | 0.3 |  |  | $ | (1.7) |  |  | $ | 0.9 |  |  | $ | (0.1) |
Segment EBITA 2: |  |  |  |  |  |  |
MD&E | $ | 181.4 |  |  | $ | 144.6 |  |  | $ | 274.6 |  |  | $ | 224.4 |
IA&C | 132.7 |  |  | 131.0 |  |  | 240.6 |  |  | 229.1 |
SC&E | 53.5 |  |  | 71.3 |  |  | 97.4 |  |  | 116.5 |
Corporate and Other | (29.0) |  |  | (15.0) |  |  | (69.1) |  |  | (28.9) |
Total | $ | 338.6 |  |  | $ | 331.9 |  |  | $ | 543.5 |  |  | $ | 541.1 |
Amortization of acquired intangibles: |  |  |  |  |  |  |
MD&E | $ | 19.2 |  |  | $ | 19.3 |  |  | $ | 38.4 |  |  | $ | 38.7 |
IA&C | 0.8 |  |  | 1.3 |  |  | 1.8 |  |  | 2.2 |
SC&E | 0.4 |  |  | 0.6 |  |  | 0.9 |  |  | 1.2 |
Corporate and Other | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |
Total | $ | 20.4 |  |  | $ | 21.2 |  |  | $ | 41.1 |  |  | $ | 42.1 |
Depreciation and amortization 3: |  |  |  |  |  |  |
MD&E | $ | 26.8 |  |  | $ | 27.0 |  |  | $ | 53.3 |  |  | $ | 53.3 |
IA&C | 12.8 |  |  | 13.2 |  |  | 25.2 |  |  | 27.3 |
SC&E | 3.6 |  |  | 3.9 |  |  | 7.1 |  |  | 8.1 |
Corporate and Other | 1.4 |  |  | 1.2 |  |  | 3.5 |  |  | 2.2 |
Total | $ | 44.6 |  |  | $ | 45.3 |  |  | $ | 89.1 |  |  | $ | 90.9 |
Capital expenditures: |  |  |  |  |  |  |
MD&E | $ | 17.5 |  |  | $ | 30.8 |  |  | $ | 39.0 |  |  | $ | 53.2 |
IA&C | 6.5 |  |  | 7.1 |  |  | 8.9 |  |  | 8.9 |
SC&E | 2.0 |  |  | 1.5 |  |  | 2.8 |  |  | 2.0 |
Corporate and Other | 8.8 |  |  | 7.0 |  |  | 19.2 |  |  | 15.2 |
Total | $ | 34.8 |  |  | $ | 46.4 |  |  | $ | 69.9 |  |  | $ | 79.3 |
1 Non-cash lease impairment costs were comprised of $0.2 at MD&E for the three months ended June 30, 2024. Non-cash lease impairment costs were comprised of $0.2 at MD&E, $0.3 at IA&C and $0.3 at SC&E for the six months ended June 30, 2024. 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. 2 Segment 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, 2024 |  | December 31, 2023
Total assets: |  |  |
MD&E | $ | 9,613.4 |  |  | $ | 10,737.5 |
IA&C | 4,676.5 |  |  | 4,790.4 |
SC&E | 1,685.4 |  |  | 1,800.6 |
Corporate and Other | 1,036.5 |  |  | 1,938.8 |
Total | $ | 17,011.8 |  |  | $ | 19,267.3 |
The following table presents the reconciliation of segment EBITA to Income before income taxes.
| Three months ended June 30, |  | Six months ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
MD&E EBITA | $ | 181.4 |  |  | $ | 144.6 |  |  | $ | 274.6 |  |  | $ | 224.4 |
IA&C EBITA | 132.7 |  |  | 131.0 |  |  | 240.6 |  |  | 229.1 |
SC&E EBITA | 53.5 |  |  | 71.3 |  |  | 97.4 |  |  | 116.5 |
Corporate and Other EBITA | (29.0) |  |  | (15.0) |  |  | (69.1) |  |  | (28.9) |
Less: consolidated amortization of acquired intangibles | 20.4 |  |  | 21.2 |  |  | 41.1 |  |  | 42.1 |
Operating income | 318.2 |  |  | 310.7 |  |  | 502.4 |  |  | 499.0 |
Total (expenses) and other income | (22.5) |  |  | (32.1) |  |  | (46.1) |  |  | (54.4) |
Income before income taxes | $ | 295.7 |  |  | $ | 278.6 |  |  | $ | 456.3 |  |  | $ | 444.6 |

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