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Segment Information | 6 Months Ended
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Jun. 30, 2012
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] |
10. | Segment Information
The Company’s segment reporting is consistent with the current manner of how the Chief Operating Decision Maker (“CODM”) and the Board of Directors view the business. The Company is focused on expanding its capabilities in database marketing and data analytics in order to position the Company for future business development efforts and revenue growth. In order to position this strategic focus along the lines of how the CODM and management will base their business decisions, the Company reports two segments. Decisions regarding allocation of resources are made and will be made based not only on the individual operating results of the subsidiaries but also on the overall performance of the reportable segments. These reportable segments are the aggregation of various reporting segments. The Company reports in two segments plus corporate. The segments are as follows:
| • | The Strategic Marketing Services segment includes 72andSunny, Anomaly Partners, Crispin Porter & Bogusky, Doner and kirshenbaum bond senecal + partners among others. This segment consists of integrated marketing consulting services firms that offer a full complement of marketing consulting services including advertising and media, marketing communications including direct marketing, public relations, corporate communications, market research, corporate identity and branding, interactive marketing, ecommerce and sales promotion. Each of the entities within the Strategic Marketing Services Group share similar economic characteristics, specifically related to the nature of their respective services, the manner in which the services are provided and the similarity of their respective customers. Due to the similarities in these businesses, they exhibit similar long term financial performance and have been aggregated together.
| • | The Performance Marketing Services segment includes our firms that provide consumer insights to satisfy the growing need for targetable, measurable solutions or cost effective means of driving return on marketing investment. These services interface directly with the consumer of a client’s product or service. Such services include the design, development, research and implementation of consumer media services and direct marketing initiatives. Each of the entities within the Performance Marketing Services Group share similar economic characteristics specifically related to the nature of their respective services, the manner in which the services are provided, and the similarity of their respective customers. Due to the similarities in these businesses, the services provided to the customer and they exhibit similar long term financial performance and have been aggregated together.
The significant accounting polices of these segments are the same as those described in the summary of significant accounting policies included in the notes to the consolidated financial statements. The Company continues to evaluate its Corporate Group and the services provided by the Corporate Group to the operating segments. Summary financial information concerning the Company’s operating segments is shown in the following tables: Three Months Ended June 30, 2012 (thousands of United States dollars)
|  | Strategic Marketing Services |  |  | Performance Marketing Services |  |  | Corporate |  |  | Total |
Revenue |  | $ | 183,750 |  |  | $ | 90,352 |  |  | $ | — |  |  | $ | 274,102 |
Cost of services sold |  |  | 122,285 |  |  |  | 66,644 |  |  |  | — |  |  |  | 188,929 |
Office and general expenses |  |  | 39,557 |  |  |  | 17,713 |  |  |  | 16,975 |  |  |  | 74,245 |
Depreciation and amortization |  |  | 8,828 |  |  |  | 4,488 |  |  |  | 329 |  |  |  | 13,645 |
Operating Profit/(Loss) |  |  | 13,080 |  |  |  | 1,507 |  |  |  | (17,304 | ) |  |  | (2,717 | )
Other Income (Expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 214 |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (11,809 | )
Loss from continuing operations before income taxes, equity in affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (14,312 | )
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,544 |
Loss from continuing operations before equity in affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (16,856 | )
Equity in earnings of non-consolidated affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 34 |
Loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (16,822 | )
Loss from discontinuing operations attributable to MDC Partners Inc., net of taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,687 | )
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (18,509 | )
Net income attributable to the noncontrolling interests |  |  | (1,353 | ) |  |  | (252 | ) |  |  | — |  |  |  | (1,605 | )
Net loss attributable to MDC Partners Inc. |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (20,114 | )
Non cash stock based compensation |  | $ | 1,967 |  |  | $ | 1,887 |  |  | $ | 11,499 |  |  | $ | 15,353 |
Supplemental Segment Information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 2,447 |  |  | $ | 1,905 |  |  | $ | 87 |  |  | $ | 4,439 |
Three Months Ended June 30, 2011 (thousands of United States dollars)
|  | Strategic Marketing Services |  |  | Performance Marketing Services |  |  | Corporate |  |  | Total |
Revenue |  | $ | 154,957 |  |  | $ | 83,063 |  |  | $ | — |  |  | $ | 238,020 |
Cost of services sold |  |  | 99,099 |  |  |  | 61,979 |  |  |  | — |  |  |  | 161,078 |
Office and general expenses |  |  | 27,625 |  |  |  | 14,280 |  |  |  | 10,603 |  |  |  | 52,508 |
Depreciation and amortization |  |  | 5,182 |  |  |  | 4,270 |  |  |  | 117 |  |  |  | 9,569 |
Operating Profit/(Loss) |  |  | 23,051 |  |  |  | 2,534 |  |  |  | (10,720 | ) |  |  | 14,865 |
Other Income (Expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 448 |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (10,633 | )
Income from continuing operations before income taxes, equity in affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,680 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 588 |
Income from continuing operations before equity in affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,092 |
Equity in earnings of non-consolidated affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 79 |
Income from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,171 |
Loss from discontinuing operations attributable to MDC Partners Inc., net of taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (321 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,850 |
Net income attributable to the noncontrolling interests |  |  | (2,335 | ) |  |  | (192 | ) |  |  | — |  |  |  | (2,527 | )
Net income attributable to MDC Partners Inc. |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,323 |
Non cash stock based compensation |  | $ | 176 |  |  | $ | 478 |  |  | $ | 5,121 |  |  | $ | 5,775 |
Supplemental Segment Information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 2,620 |  |  | $ | 789 |  |  | $ | 32 |  |  | $ | 3,441 |
Six Months Ended June 30, 2012 (thousands of United States dollars)
|  | Strategic Marketing Services |  |  | Performance Marketing Services |  |  | Corporate |  |  | Total |
Revenue |  | $ | 343,846 |  |  | $ | 165,912 |  |  | $ | — |  |  | $ | 509,758 |
Cost of services sold |  |  | 241,838 |  |  |  | 124,051 |  |  |  | — |  |  |  | 365,889 |
Office and general expenses |  |  | 74,197 |  |  |  | 35,174 |  |  |  | 24,908 |  |  |  | 134,279 |
Depreciation and amortization |  |  | 13,925 |  |  |  | 9,042 |  |  |  | 677 |  |  |  | 23,644 |
Operating Profit/(Loss) |  |  | 13,886 |  |  |  | (2,355 | ) |  |  | (25,585 | ) |  |  | (14,054 | )
Other Income (Expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (809 | )
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (22,756 | )
Loss from continuing operations before income taxes, equity in affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (37,619 | )
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,807 |
Loss from continuing operations before equity in affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (41,426 | )
Equity in earnings of non-consolidated affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 306 |
Loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (41,120 | )
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,240 | )
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (43,360 | )
Net income attributable to the noncontrolling interests |  |  | (2,453 | ) |  |  | (582 | ) |  |  | — |  |  |  | (3,035 | )
Net loss attributable to MDC Partners Inc. |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (46,395 | )
Non cash stock based compensation |  | $ | 3,833 |  |  | $ | 3,578 |  |  | $ | 13,826 |  |  | $ | 21,237 |
Supplemental Segment Information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 5,134 |  |  | $ | 4,229 |  |  | $ | 187 |  |  | $ | 9,550 |
Goodwill and intangibles |  | $ | 543,134 |  |  | $ | 258,868 |  |  | $ | — |  |  | $ | 802,002 |
Total Assets |  | $ | 835,564 |  |  | $ | 429,899 |  |  | $ | 127,974 |  |  | $ | 1,393,437 |
Six Months Ended June 30, 2011 (thousands of United States dollars)
|  | Strategic Marketing Services |  |  | Performance Marketing Services |  |  | Corporate |  |  | Total |
Revenue |  | $ | 296,450 |  |  | $ | 156,661 |  |  | $ | — |  |  | $ | 453,111 |
Cost of services sold |  |  | 199,660 |  |  |  | 118,971 |  |  |  | — |  |  |  | 318,631 |
Office and general expenses |  |  | 54,778 |  |  |  | 24,845 |  |  |  | 17,309 |  |  |  | 96,932 |
Depreciation and amortization |  |  | 10,989 |  |  |  | 8,662 |  |  |  | 221 |  |  |  | 19,872 |
Operating Profit/(Loss) |  |  | 31,023 |  |  |  | 4,183 |  |  |  | (17,530 | ) |  |  | 17,676 |
Other Income (Expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 762 |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (20,159 | )
Loss from continuing operations before income taxes, equity in affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,721 | )
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 946 |
Loss from continuing operations before equity in affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,667 | )
Equity in earnings of non-consolidated affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 334 |
Loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,333 | )
Loss from discontinuing operations attributable to MDC Partners Inc., net of taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (895 | )
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,228 | )
Net income attributable to the noncontrolling interests |  |  | (3,978 | ) |  |  | (154 | ) |  |  | — |  |  |  | (4,132 | )
Net loss attributable to MDC Partners Inc. |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (7,360 | )
Non cash stock based compensation |  | $ | 1,723 |  |  | $ | 983 |  |  | $ | 7,343 |  |  | $ | 10,049 |
Supplemental Segment Information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 6,353 |  |  | $ | 1,721 |  |  | $ | 230 |  |  | $ | 8,304 |
Goodwill and intangibles |  | $ | 390,835 |  |  | $ | 215,826 |  |  | $ | — |  |  | $ | 606,661 |
Total assets |  | $ | 578,419 |  |  | $ | 332,092 |  |  | $ | 42,408 |  |  | $ | 952,919 |
A summary of the Company’s revenue by geographic area, based on the location in which the services originated, is set forth in the following table:
|  | United States |  |  | Canada |  |  | Other |  |  | Total |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  | $ | 223,514 |  |  | $ | 38,284 |  |  | $ | 12,304 |  |  | $ | 274,102 |
2011 |  | $ | 189,213 |  |  | $ | 40,330 |  |  | $ | 8,477 |  |  | $ | 238,020 |
Six Months Ended June 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  | $ | 411,379 |  |  | $ | 74,722 |  |  | $ | 23,657 |  |  | $ | 509,758 |
2011 |  | $ | 361,122 |  |  | $ | 75,469 |  |  | $ | 16,520 |  |  | $ | 453,111 |

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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