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Segment Information
 12 Months Ended
Dec. 31, 2011
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

15. 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 Crispin Porter & Bogusky 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 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 service 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 policies 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. The Company has determined that additional amounts should be allocated to the operating segments based on additional services provided in 2009. The Company will continue to evaluate the services and amount of time spent directly on the operating segments business operations, and adjust accordingly.

 

    For the Year Ended December 31, 2011  
    Strategic
Marketing
Services		     Performance
Marketing
Services		     Corporate     Total  
Revenue   $ 608,022     $ 332,411     $ —     $ 940,433  
Cost of services sold     425,316       245,048       —       670,364  
Office and general expenses     137,824       45,323       35,432       218,579  
Depreciation and amortization     22,378       17,020       826       40,224  
Operating profit (Loss)     22,504       25,020       (36,258 )     11,266  
Other income (Expense):                                
Other income, net                             116  
Foreign exchange loss                             (1,677 )
Interest expense, net                             (41,716 )
Loss from continuing operations before income taxes, equity in affiliates and noncontrolling interest                             (32,011 )
Income tax expense                             41,735  
Loss from continuing operations before equity in affiliates and noncontrolling interests                             (73,746 )
Equity in earnings of affiliates                             213  
Loss from continuing operations                             (73,533 )
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes                             (2,754 )
Net loss                             (76,287 )
Net income attributable to noncontrolling interests     (6,414 )     (1,973 )     —       (8,387 )
Net (loss) attributable to MDC Partners Inc.                           $ (84,674 )
Stock-based compensation   $ 5,149     $ 3,695     $ 14,813     $ 23,657  
Capital expenditures from continuing operations   $ 11,647     $ 4,782     $ 6,929     $ 23,358  
Goodwill and intangibles   $ 426,034     $ 237,190     $ —     $ 663,224  
Total assets   $ 627,268     $ 380,825     $ 47,652     $ 1,055,745  

  

    For the Year Ended December 31, 2010  
    Strategic
Marketing
Services		     Performance
Marketing
Services		     Corporate     Total  
Revenue   $ 438,941     $ 249,885     $ —     $ 688,826  
Cost of services sold     288,916       183,202       —       472,118  
Office and general expenses     90,495       38,230       22,291       151,016  
Depreciation and amortization     17,917       15,873       368       34,158  
Operating profit (Loss)     41,613       12,580       (22,659 )     31,534  
Other income (Expense):                                
Other income, net                             381  
Foreign exchange gain                             69  
Interest expense, net                             (33,192 )
Loss from continuing operations before income taxes, equity in affiliates and noncontrolling interest                             (1,208 )
Income tax recovery                             (165 )
Loss from continuing operations before equity in affiliates and noncontrolling interests                             (1,043 )
Equity in earnings of affiliates                             866  
Loss from continuing operations                             (177 )
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes                             (4,885 )
Net loss                             (5,062 )
Net income attributable to noncontrolling interests     (7,211 )     (3,167 )     —       (10,378 )
Net (loss) attributable to MDC Partners Inc.                           $ (15,440 )
Stock-based compensation   $ 7,282     $ 1,992     $ 7,233     $ 16,507  
Capital expenditures from continuing operations   $ 6,476     $ 4,010     $ 610     $ 11,096  
Goodwill and intangibles   $ 367,856     $ 213,765     $ —     $ 581,621  
Total assets   $ 552,383     $ 322,520     $ 39,445     $ 914,348  

  

    For the Year Ended December 31, 2009  
    Strategic
Marketing
Services		     Performance
Marketing
Services		     Corporate     Total  
Revenue   $ 370,615     $ 165,876     $ —     $ 536,491  
Cost of services sold     220,657       127,586       —       348,243  
Office and general expenses     87,633       25,584       18,091       131,308  
Depreciation and amortization     25,518       8,278       428       34,224  
Operating Profit (Loss)     36,807       4,428       (18,519 )     22,716  
Other Income (Expense):                                
Other expense, net                             (91 )
Foreign exchange loss                             (1,956 )
Interest expense, net                             (21,646 )
Loss from continuing operations before income taxes, equity in affiliates and noncontrolling interest                             (977 )
Income tax expense                             8,536  
Loss from continuing operations before equity in affiliates and noncontrolling interests                             (9,513 )
Equity in loss of affiliates                             (8 )
Loss from continuing operations                             (9,521 )
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes                             (3,237 )
Net loss                             (12,758 )
Net income attributable to noncontrolling interests     (4,851 )     (715 )     —       (5,566 )
Net loss attributable to MDC Partners Inc.                           $ (18,324 )
Stock-based compensation   $ 8,742     $ 868     $ 5,834     $ 15,444  
Capital expenditures from continuing operations   $ 3,617     $ 657     $ 239     $ 4,513  
Goodwill and intangibles   $ 277,992     $ 58,355     $ —     $ 336,347  
Total assets   $ 430,959     $ 112,780     $ 60,780     $ 604,519  

 

A summary of the Company’s long-lived assets, comprised of fixed assets, goodwill and intangibles, net, as at December 31, is set forth in the following table.

 

    United States     Canada     Other     Total  
Long-lived Assets                                
2011   $ 39,555     $ 7,003     $ 1,179     $ 47,737  
2010   $ 32,354     $ 7,606     $ 1,093     $ 41,053  
Goodwill and Intangible Assets                                
2011   $ 577,388     $ 85,836     $ —     $ 663,224  
2010   $ 495,133     $ 86,488     $ —     $ 581,621  

 

A summary of the Company’s revenue as at December 31 is set forth in the following table.

 

    United States     Canada     Other     Total  
Revenue:                                
2011   $ 755,316     $ 152,374     $ 32,743     $ 940,433  
2010   $ 573,723     $ 97,452     $ 17,651     $ 688,826  
2009   $ 447,326     $ 80,124     $ 9,041     $ 536,491