XML 23 R10.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Revenue | 3 Months Ended
--- | ---
Mar. 31, 2018
Revenue from Contract with Customer [Abstract] |
Revenue | Revenue Disaggregated Revenue Data The Company provides a broad range of services to a large base of clients across the full spectrum of industry verticals on a global basis. The primary source of revenue is from agency arrangements in the form of fees for services performed, commissions, and from performance incentives or bonuses. Certain clients may engage with the Company in various geographic locations, across multiple disciplines, and through multiple Partner Firms. Representation of a client rarely means that MDC handles marketing communications for all brands or product lines of the client in every geographical location. The Company’s Partner firms often cooperate with one another through referrals and the sharing of both services and expertise, which enables MDC to service clients’ varied marketing needs by crafting custom integrated solutions. Additionally, the Company maintains separate, independent operating companies to enable it to effectively manage potential conflicts of interest by representing competing clients across the MDC network. The following table presents revenue disaggregated by industry vertical for the three months ended March 31, 2018, and the impact of adoption of ASC 606:
| For the three months ended March 31,
| 2018 |  |
Industry | Reportable Segment |  | As reported |  | Adjustment to exclude impact of Adoption of ASC 606 |  | Adjusted |  | 2017
Food & Beverage | All |  | $ | 64,285 |  |  | $ | 6,805 |  |  | $ | 71,090 |  |  | $ | 62,273 |
Retail | All |  | 35,772 |  |  | 840 |  |  | 36,612 |  |  | 43,324 |
Consumer Products | All |  | 31,802 |  |  | 132 |  |  | 31,934 |  |  | 37,922 |
Communications | All, excluding Domestic Creative Agencies |  | 29,657 |  |  | 3,311 |  |  | 32,968 |  |  | 35,728 |
Automotive | All, excluding Domestic Creative Agencies |  | 20,494 |  |  | 4,218 |  |  | 24,712 |  |  | 32,354 |
Technology | All |  | 34,144 |  |  | 2,835 |  |  | 36,979 |  |  | 30,550 |
Healthcare | All |  | 33,170 |  |  | 968 |  |  | 34,138 |  |  | 28,069 |
Financials | All |  | 21,838 |  |  | 285 |  |  | 22,123 |  |  | 19,983 |
Transportation and Travel/Lodging | All |  | 14,848 |  |  | 697 |  |  | 15,545 |  |  | 13,213 |
Other | All |  | 40,958 |  |  | 1,185 |  |  | 42,143 |  |  | 41,284 |
|  |  | $ | 326,968 |  |  | $ | 21,276 |  |  | $ | 348,244 |  |  | 344,700 |
MDC has historically largely focused where the Company was founded in North America, the largest market for its services in the world. In recent years the Company has expanded its global footprint to support clients looking for help to grow their businesses in new markets. Today, MDC’s Partner Firms are located in the United States, Canada, and an additional thirteen countries around the world. In the past, some clients have responded to weakening economic conditions with reductions to their marketing budgets, which included discretionary components that are easier to reduce in the short term than other operating expenses. The following table presents revenue disaggregated by geography:
| For the three months ended March 31,
| 2018 |  |
Geographic Location | Reportable Segment |  | As reported |  | Adjustment to exclude impact of Adoption of ASC 606 |  | Adjusted |  | 2017
United States | All |  | $ | 256,524 |  |  | $ | 9,018 |  |  | $ | 265,542 |  |  | $ | 274,682 |
Canada | All, excluding Media Services |  | 26,379 |  |  | 953 |  |  | 27,332 |  |  | 26,470 |
Other | All |  | 44,065 |  |  | 11,305 |  |  | 55,370 |  |  | 43,548 |
|  |  | $ | 326,968 |  |  | $ | 21,276 |  |  | $ | 348,244 |  |  | $ | 344,700 |
For more detailed information about the Company’s reportable segments, see Note 12. Contract assets and liabilities Contract assets consist of fees and reimbursable outside vendor costs incurred on behalf of clients when providing advertising, marketing and corporate communications services that have not yet been invoiced to clients. Unbilled service fees were $75,363 and $54,177 at March 31, 2018 and December 31, 2017, respectively, and are included as a component of accounts receivable on the unaudited condensed consolidated balance sheets. Outside vendor costs incurred on behalf of clients which have yet to be invoiced were $57,885 and $31,146 at March 31, 2018 and December 31, 2017, respectively, and are included on the unaudited condensed consolidated balance sheets as expenditures billable to clients. Such amounts are invoiced to clients at various times over the course of the production process. Contract liabilities consist of fees billed to clients in excess of fees recognized as revenue and are classified as advance billings on the Company’s unaudited condensed consolidated balance sheets. Advance billings at March 31, 2018 and December 31, 2017 were $210,245 and $148,133, respectively. The increase in the advance billings balance of $62,112 for the three months ended March 31, 2018 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $72,160 of revenues recognized that were included in the advance billings balances as of December 31, 2017. Changes in the contract asset and liability balances during the three months ended March 31, 2018 and December 31, 2017 were not materially impacted by write-offs, impairment losses or any other factors. Practical expedients In adopting ASC 606, the Company applied the practical expedient to not disclose information about remaining performance obligations that have original expected durations of one year or less. Amounts related to those performance obligations with expected durations of greater than one year are immaterial.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration