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Segment Information | 12 Months Ended
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Dec. 31, 2016
Segment Reporting [Abstract] |
Segment Information | 14. Segment Information The Company determines an operating segment if a component (1) engages in business activities from which it earns revenues and incurs expenses, (2) has discrete financial information and that is (3) regularly reviewed by the Chief Operating Decision Maker (“CODM”) to make decisions regarding resource allocation for the segment and assess its performance. During June of 2016, the Company entered into a Separation and Release Agreement with its former Chief Operating Officer in connection with a limited restructuring of the Company’s corporate department. This change to the Company’s management structure was designed to provide the CODM greater visibility into the operating performance of individual Partner Firms and has resulted in a corresponding change in the level at which the CODM reviews the operating results of such Partner Firms. As a result, in the third quarter of 2016, the Company reassessed its determination of operating segments and concluded that each Partner Firm represents an operating segment. The Company assessed the average long-term gross margins expected for each Partner Firm together with the qualitative characteristics set forth in ASC 280-10-50 and aggregated the Partner Firms that meet the aggregation criteria into one Reportable segment and combined and disclosed those Partner Firms that do not meet the aggregation criteria as an “all other” segment. The Company also reports the Corporate Group.
• | The Reportable segment is comprised of the Company’s integrated advertising, media, and public relations service firms. These core or principal service offerings are similar and/or complementary in many respects and the firms that provide these service offerings both compete and/or collaborate with each other for new business. Each Partner Firm represents an operating segment and the Company aggregates its Partner Firms to report in one Reportable segment along with an “all other” segment. Firms within this segment include Allison & Partners, Anomaly, Crispin Porter + Bogusky, Doner, Forsman & Bodenfors, Hunter PR, kbs, MDC Media Partners, and 72andSunny, among others. These firms share similar characteristics related to the nature of their services as well as the type of clients and the methods used to provide their services. In addition, the class of customer is also common among the Partner Firms in this Reportable segment. This results in the firms having similar economics of their business and the Company believes the average long-term gross margin expectations are similar among the firms aggregated in the Reportable segment.
• | The “all other” segment is comprised of the firms that provide the Company’s specialist marketing offerings such as direct marketing, sales promotion, market research, strategic communications, database and customer relationship management, data analytics and insights, corporate identity, design and branding, and product and service innovation. Firms within this segment include Gale Partners, Kingsdale, Relevent, Team, Redscout and Y Media Labs. The nature of the specialized services provided by these firms vary from those firms aggregated into the Reportable segment in that such services are generally complimentary and are provided to round out the portfolio of services offered by the Company. This results in these firms having different current and long-term performance expectations from those firms aggregated in the Reportable segment.
• | The Corporate Group consists of corporate office expenses incurred in connection with the strategic resources provided to the Partner Firms, as well as certain other centrally managed expenses that are not fully allocated to the Reportable segments. These office and general expenses include (1) salaries and related expenses for corporate office employees including employees dedicated to supporting the Partner Firms, (2) occupancy expense relating to properties occupied by all corporate office employees, (3) other office and general expenses including professional fees for the financial statement audits and other public company costs, and (4) certain other professional fees managed by the corporate office. Additional expenses managed by the corporate office that are directly related to the Partner Firms are allocated to the Reportable and “all other” segments.
Prior year results have been recast to reflect the new segment reporting.
| For the year ended December 31, 2016
| Reportable Segment |  | All Other |  | Corporate |  | Total
Revenue | $ | 1,147,173 |  |  | 238,612 |  |  | — |  |  | 1,385,785 |
Cost of services sold | 775,129 |  |  | 161,004 |  |  | — |  |  | 936,133 |
Office and general expenses | 223,823 |  |  | 39,895 |  |  | 42,533 |  |  | 306,251 |
Depreciation and amortization | 33,848 |  |  | 11,013 |  |  | 1,585 |  |  | 46,446 |
Goodwill impairment | — |  |  | 48,524 |  |  | — |  |  | 48,524 |
Operating profit (loss) | 114,373 |  |  | (21,824 | ) |  | (44,118 | ) |  | 48,431 |
Other Income (Expense): |  |  |  |  |  |  |  |  |  |
Other income, net |  |  |  |  |  |  |  |  | 414 |
Foreign exchange loss |  |  |  |  |  |  |  |  | (213 | )
Interest expense, finance charges, and loss on redemption of notes, net |  |  |  |  |  |  | (98,348 | )
Loss from continuing operations before income taxes and equity in earnings of non-consolidated affiliates |  |  |  |  |  |  |  |  | (49,716 | )
Income tax benefit |  |  |  |  |  |  | (7,301 | )
Loss from continuing operations before equity in earnings of non-consolidated affiliates |  |  |  |  |  |  |  |  | (42,415 | )
Equity in losses of non-consolidated affiliates |  |  |  |  |  |  | (309 | )
Net loss |  |  |  |  |  |  |  |  | (42,724 | )
Net income attributable to noncontrolling interests | (3,676 | ) |  | (1,542 | ) |  | — |  |  | (5,218 | )
Net loss attributable to MDC Partners Inc. |  |  |  |  |  |  | (47,942 | )
Stock-based compensation | $ | 14,143 |  |  | $ | 4,335 |  |  | $ | 2,525 |  |  | $ | 21,003 |
Capital expenditures from continuing operations | $ | 26,856 |  |  | $ | 2,543 |  |  | $ | 33 |  |  | $ | 29,432 |
Goodwill and intangibles | $ | 742,454 |  |  | $ | 187,376 |  |  | $ | — |  |  | $ | 929,830 |
Total assets | $ | 1,150,318 |  |  | $ | 266,316 |  |  | $ | 160,744 |  |  | $ | 1,577,378 |
| For the year ended December 31, 2015
| Reportable Segment |  | All other |  | Corporate |  | Total
Revenue | $ | 1,101,675 |  |  | $ | 224,581 |  |  | $ | — |  |  | $ | 1,326,256 |
Cost of services sold | 724,749 |  |  | 154,967 |  |  | — |  |  | 879,716 |
Office and general expenses | 208,837 |  |  | 49,972 |  |  | 63,398 |  |  | 322,207 |
Depreciation and amortization | 32,501 |  |  | 17,948 |  |  | 1,774 |  |  | 52,223 |
Operating profit (loss) | 135,588 |  |  | 1,694 |  |  | (65,172 | ) |  | 72,110 |
Other Income (Expense): |  |  |  |  |  |  |
Other income, net |  |  |  |  |  |  | 7,238 |
Foreign exchange loss |  |  |  |  |  |  | (39,328 | )
Interest expense and finance charges, net |  |  |  |  |  |  | (57,436 | )
Loss from continuing operations before income taxes and equity in earnings of non-consolidated affiliates |  |  |  |  |  |  | (17,416 | )
Income tax expense |  |  |  |  |  |  | 5,664 |
Loss from continuing operations before equity in earnings of non-consolidated affiliates |  |  |  |  |  |  | (23,080 | )
Equity in earnings of non-consolidated affiliates |  |  |  |  |  |  | 1,058 |
Loss from continuing operations |  |  |  |  |  |  | (22,022 | )
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes |  |  |  |  |  |  | (6,281 | )
Net loss |  |  |  |  |  |  | (28,303 | )
Net income attributable to noncontrolling interests | (7,202 | ) |  | (1,822 | ) |  | (30 | ) |  | (9,054 | )
Net loss attributable to MDC Partners Inc. |  |  |  |  |  |  | $ | (37,357 | )
Stock-based compensation | $ | 10,231 |  |  | $ | 4,825 |  |  | $ | 2,740 |  |  | $ | 17,796 |
Capital expenditures from continuing operations | $ | 21,434 |  |  | $ | 1,770 |  |  | $ | 371 |  |  | $ | 23,575 |
Goodwill and intangibles | $ | 699,730 |  |  | $ | 242,953 |  |  | $ | — |  |  | $ | 942,683 |
Total assets | $ | 1,057,512 |  |  | $ | 317,861 |  |  | $ | 202,252 |  |  | $ | 1,577,625 |
| For the year ended December 31, 2014
| Reportable Segment |  | All other |  | Corporate |  | Total
Revenue | $ | 991,245 |  |  | $ | 232,267 |  |  | $ | — |  |  | $ | 1,223,512 |
Cost of services sold | 631,635 |  |  | 166,883 |  |  | — |  |  | 798,518 |
Office and general expenses | 188,757 |  |  | 35,024 |  |  | 66,292 |  |  | 290,073 |
Depreciation and amortization | 30,631 |  |  | 14,756 |  |  | 1,785 |  |  | 47,172 |
Operating profit (loss) | 140,222 |  |  | 15,604 |  |  | (68,077 | ) |  | 87,749 |
Other Income (Expense): |  |  |  |  |  |  |
Other income, net |  |  |  |  |  |  | 689 |
Foreign exchange loss |  |  |  |  |  |  | (18,482 | )
Interest expense and finance charges, net |  |  |  |  |  |  | (54,847 | )
Income from continuing operations before income taxes and equity in earnings of non-consolidated affiliates |  |  |  |  |  |  | 15,109 |
Income tax expense |  |  |  |  |  |  | 12,422 |
Income from continuing operations before equity in earnings of non-consolidated affiliates |  |  |  |  |  |  | 2,687 |
Equity in earnings of non-consolidated affiliates |  |  |  |  |  |  | 1,406 |
Income from continuing operations |  |  |  |  |  |  | 4,093 |
Loss from discontinued operations attributable to MDC Partners Inc., net of taxes |  |  |  |  |  |  | (21,260 | )
Net loss |  |  |  |  |  |  | (17,167 | )
Net income attributable to noncontrolling interests | (5,398 | ) |  | (1,492 | ) |  | — |  |  | (6,890 | )
Net loss attributable to MDC Partners Inc. |  |  |  |  |  |  | $ | (24,057 | )
Stock-based compensation | $ | 8,559 |  |  | $ | 3,474 |  |  | $ | 5,663 |  |  | $ | 17,696 |
Capital expenditures from continuing operations | $ | 23,280 |  |  | $ | 1,799 |  |  | $ | 1,337 |  |  | $ | 26,416 |
Goodwill and intangibles | $ | 715,092 |  |  | $ | 222,402 |  |  | $ | — |  |  | $ | 937,494 |
Total assets | $ | 1,052,419 |  |  | $ | 315,717 |  |  | $ | 280,754 |  |  | $ | 1,648,890 |
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 |  |  |  |  |  |  |  |  |  |  |
2016 | $ | 67,617 |  |  | $ | 5,887 |  |  | $ | 4,873 |  |  | $ | 78,377 |
2015 | $ | 52,305 |  |  | $ | 6,817 |  |  | $ | 4,435 |  |  | $ | 63,557 |
Goodwill and Intangible Assets |  |  |  |  |  |  |  |  |  |  |
2016 | $ | 736,334 |  |  | $ | 121,987 |  |  | $ | 71,509 |  |  | $ | 929,830 |
2015 | $ | 798,746 |  |  | $ | 122,821 |  |  | $ | 21,116 |  |  | $ | 942,683 |
A summary of the Company’s revenue as at December 31 is set forth in the following table.
| United States |  | Canada |  | Other |  | Total
Revenue: |  |  |  |  |  |  |  |  |  |  |
2016 | $ | 1,103,714 |  |  | $ | 124,101 |  |  | $ | 157,970 |  |  | $ | 1,385,785 |
2015 | $ | 1,085,051 |  |  | $ | 129,039 |  |  | $ | 112,166 |  |  | $ | 1,326,256 |
2014 | $ | 993,474 |  |  | $ | 150,390 |  |  | $ | 79,648 |  |  | $ | 1,223,512 |

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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 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: 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=68060357&loc=d3e9038-108599 Reference 3: 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=68060357&loc=d3e8971-108599 Reference 4: 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=68060357&loc=d3e8595-108599 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=68060357&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 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: 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=68060357&loc=d3e8844-108599 Reference 8: 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=68060357&loc=d3e8984-108599 Reference 9: 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=68060357&loc=d3e9031-108599 Reference 10: 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=68060357&loc=d3e9054-108599 Reference 11: 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=68060357&loc=d3e8538-108599 Reference 12: 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=68060357&loc=d3e8864-108599 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=68060357&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 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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