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Segment Information
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Information

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 consists of integrated marketing consulting services firms that offer a full complement of marketing, activation and 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 and analytics 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, media planning and buying 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 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, 2012
Strategic Marketing ServicesPerformance Marketing ServicesCorporateTotal
Revenue$721,228$349,483$—$1,070,711
Cost of services sold480,820258,301—739,121
Office and general expenses190,24273,99538,847303,084
Depreciation and amortization27,45517,6171,34246,414
Operating profit (Loss)22,711(430)(40,189)(17,908)
Other income (Expense):
Other income, net117
Foreign exchange loss(976)
Interest expense, net(46,312)
Loss from continuing operations before income taxes, equity in affiliates(65,079)
Income tax expense9,553
Loss from continuing operations before equity in affiliates(74,632)
Equity in earnings of affiliates633
Loss from continuing operations(73,999)
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes(5,428)
Net loss(79,427)
Net income attributable to noncontrolling interests(4,538)(1,474)—(6,012)
Net loss attributable to MDC Partners Inc.$(85,439)
Stock-based compensation$9,186$8,227$14,784$32,197
Capital expenditures from continuing operations$11,487$8,466$382$20,335
Goodwill and intangibles$532,643$250,671$—$783,314
Total assets$827,248$397,450$120,247$1,344,945

 


 


For the Year Ended December 31, 2011
Strategic Marketing ServicesPerformance Marketing ServicesCorporateTotal
Revenue$608,022$332,381$—$940,403
Cost of services sold425,316244,674—669,990
Office and general expenses137,82445,25835,432218,514
Depreciation and amortization22,37817,01682640,220
Operating profit (Loss)22,50425,433(36,258)11,679
Other income (Expense):
Other income, net116
Foreign exchange loss(1,677)
Interest expense, net(41,716)
Loss from continuing operations before income taxes, equity in affiliates(31,598)
Income tax expense41,735
Loss from continuing operations before equity in affiliates(73,333)
Equity in earnings of affiliates213
Loss from continuing operations(73,120)
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes(3,167)
Net loss(76,287)
Net income attributable to noncontrolling interests(6,414)(1,973)—(8,387)
Net loss attributable to MDC Partners Inc.$(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 ServicesPerformance Marketing ServicesCorporateTotal
Revenue$438,941$249,885$—$688,826
Cost of services sold288,916183,202—472,118
Office and general expenses90,49538,23022,291151,016
Depreciation and amortization17,91715,87336834,158
Operating Profit (Loss)41,61312,580(22,659)31,534
Other Income (Expense):
Other expense, net381
Foreign exchange gain69
Interest expense, net(33,192)
Loss from continuing operations before income taxes, equity in affiliates(1,208)
Income tax expense(165)
Loss from continuing operations before equity in affiliates(1,043)
Equity in loss of affiliates866
Loss from continuing operations(177)
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes(4,885)
Net loss(5,062)
Net income attributable to noncontrolling interests(7,211)(3,167)—(10,378)
Net loss attributable to MDC Partners Inc.$(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

 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 StatesCanadaOtherTotal
Long-lived Assets
2012$45,068$6,145$1,701$52,914
2011$39,555$7,003$1,179$47,737
Goodwill and Intangible Assets
2012$698,083$85,231$—$783,314
2011$577,388$85,836$—$663,224

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

 

United StatesCanadaOtherTotal
Revenue:
2012$868,313$149,807$52,591$1,070,711
2011$755,286$152,374$32,743$940,403
2010$573,723$97,452$17,651$688,826