Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 14, 2018 | Jun. 30, 2017 | |
DEI [Abstract] | |||
Entity Registrant Name | INTERPUBLIC GROUP OF COMPANIES, INC. | ||
Entity Central Index Key | 51,644 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 1,217 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | IPG | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 384,469,632 | ||
Entity Public Float | $ 9,694,530,139 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
REVENUE | $ 7,882.4 | $ 7,846.6 | $ 7,613.8 |
OPERATING EXPENSES: | |||
Salaries and related expenses | 5,068.1 | 5,035.1 | 4,854.8 |
Office and general expenses | 1,840.7 | 1,870.5 | 1,884.2 |
Total operating expenses | 6,908.8 | 6,905.6 | 6,739 |
OPERATING INCOME | 973.6 | 941 | 874.8 |
EXPENSES AND OTHER INCOME: | |||
Interest expense | (90.8) | (90.6) | (85.8) |
Interest income | 19.4 | 20.1 | 22.8 |
Other expense, net | (26.2) | (40.3) | (49.6) |
Total (expenses) and other income | (97.6) | (110.8) | (112.6) |
Income before income taxes | 876 | 830.2 | 762.2 |
Provision for income taxes | 281.9 | 198 | 282.8 |
Income of consolidated companies | 594.1 | 632.2 | 479.4 |
Equity in net income of unconsolidated affiliates | 0.9 | 0.3 | 1.1 |
NET INCOME | 595 | 632.5 | 480.5 |
Net income attributable to noncontrolling interests | (16) | (24) | (25.9) |
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS | $ 579 | $ 608.5 | $ 454.6 |
Earnings per share available to IPG common stockholders: | |||
Basic | $ 1.49 | $ 1.53 | $ 1.11 |
Diluted | $ 1.46 | $ 1.49 | $ 1.09 |
Weighted-average number of common shares outstanding: | |||
Basic | 389.6 | 397.9 | 408.1 |
Diluted | 397.3 | 408 | 415.7 |
Dividends declared per common share | $ 0.72 | $ 0.60 | $ 0.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 595 | $ 632.5 | $ 480.5 |
Foreign Currency Translation: | |||
Foreign currency translation adjustments | 132.2 | (55.9) | (256.8) |
Reclassification adjustments recognized in net income | 1.1 | 3.7 | 23.3 |
Foreign currency translation, net of tax | 133.3 | (52.2) | (233.5) |
Available-for-sale securities: | |||
Changes in fair value of available-for-sale securities | 0 | 0.5 | 0.5 |
Recognition of previously unrealized gains in net income | (0.7) | (1.3) | 0 |
Income tax effect | 0.1 | 0.1 | 0 |
Available-for-sale securities, net of tax | (0.6) | (0.7) | 0.5 |
Derivatives instruments: | |||
Recognition of previously unrealized losses included in net income | 2.1 | 2 | 2 |
Income tax effect | (0.5) | (0.8) | (0.7) |
Derivative instruments, net of tax | 1.6 | 1.2 | 1.3 |
Defined benefit pension and other postretirement plans: | |||
Net actuarial (losses) gains for the period | (13.6) | (85.4) | 14.2 |
Amortization of unrecognized losses, transition obligation and prior service cost included in net income | 6.9 | 5.4 | 10.6 |
Less: settlement and curtailment losses (gains) included in net income | 6.8 | 0.4 | (0.2) |
Other | 2.7 | (2) | 0.4 |
Income tax effect | (0.5) | 15.3 | (6.4) |
Defined benefit pension and other postretirement plans, net of tax | 2.3 | (66.3) | 18.6 |
Other comprehensive income (loss), net of tax | 136.6 | (118) | (213.1) |
Total comprehensive income | 731.6 | 514.5 | 267.4 |
Less: comprehensive income attributable to noncontrolling interests | 17.5 | 22.9 | 21.7 |
Comprehensive Income Attributable to IPG | $ 714.1 | $ 491.6 | $ 245.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS: | ||
Cash and cash equivalents | $ 790.9 | $ 1,097.6 |
Accounts receivable, net of allowance of $42.7 and $55.7, respectively | 4,585 | 4,389.7 |
Expenditures billable to clients | 1,747.4 | 1,518.1 |
Assets held for sale | 5.7 | 203.2 |
Other current assets | 335.1 | 229.4 |
Total current assets | 7,464.1 | 7,438 |
Property and equipment, net | 650.4 | 622 |
Deferred income taxes | 236 | 220.3 |
Goodwill | 3,820.4 | 3,674.4 |
Other non-current assets | 524.3 | 530.5 |
TOTAL ASSETS | 12,695.2 | 12,485.2 |
LIABILITIES: | ||
Accounts payable | 6,907.8 | 6,303.6 |
Accrued liabilities | 674.7 | 794 |
Short-term borrowings | 84.9 | 85.7 |
Current portion of long-term debt | 2 | 323.9 |
Liabilities held for sale | 8.8 | 198.8 |
Total current liabilities | 7,678.2 | 7,706 |
Long-term debt | 1,285.6 | 1,280.7 |
Deferred compensation | 476.6 | 480.7 |
Other non-current liabilities | 766.9 | 708.3 |
TOTAL LIABILITIES | 10,207.3 | 10,175.7 |
Redeemable noncontrolling interests (see Note 4) | 252.1 | 252.8 |
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.10 par value, shares authorized: 800.0 shares issued: 2017 – 386.2; 2016 – 394.3 shares outstanding: 2017 – 383.2; 2016 – 391.6 | 38.6 | 39.4 |
Additional paid-in capital | 955.2 | 1,199.2 |
Retained earnings | 2,093.6 | 1,804.3 |
Accumulated other comprehensive loss, net of tax | (827.4) | (962.5) |
Stockholders Equity Subtotal Before Treasury Stock | 2,260 | 2,080.4 |
Less: Treasury stock, at cost: 2017 – 3.0 shares; 2016 – 2.7 shares | (59) | (63.3) |
Total IPG stockholders' equity | 2,201 | 2,017.1 |
Noncontrolling interests | 34.8 | 39.6 |
TOTAL STOCKHOLDERS' EQUITY | 2,235.8 | 2,056.7 |
TOTAL LIABILITIES AND EQUITY | $ 12,695.2 | $ 12,485.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 42.7 | $ 55.7 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 800 | 800 |
Common stock, shares issued | 386.2 | 394.3 |
Common stock, shares outstanding | 383.2 | 391.6 |
Treasury stock, shares | 3 | 2.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 595 | $ 632.5 | $ 480.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of fixed assets and intangible assets | 157.1 | 160.2 | 157 |
Provision for uncollectible receivables | 9.5 | 16.7 | 11.4 |
Amortization of restricted stock and other non-cash compensation | 82 | 85.6 | 70.3 |
Net amortization of bond discounts and deferred financing costs | 5.8 | 5.6 | 5.8 |
Deferred income tax provision | 1.1 | 45.7 | 49.5 |
Net losses on sales of businesses | 24.1 | 41.4 | 50.1 |
Other | 12.7 | 35.5 | 24.2 |
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash: | |||
Accounts receivable | 37.6 | (220.7) | (236.1) |
Expenditures billable to clients | (165.5) | (2.2) | (237.8) |
Other current assets | 27.4 | (4.8) | (9.7) |
Accounts payable | 311.9 | (126.1) | 419 |
Accrued liabilities | (241.3) | (61.1) | (35.3) |
Other non-current assets and liabilities | 24.4 | (95.5) | (60.4) |
Net cash provided by operating activities | 881.8 | 512.8 | 688.5 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (155.9) | (200.7) | (161.1) |
Acquisitions, net of cash acquired | (30.6) | (52) | (28.6) |
Other investing activities | (9.7) | (11.2) | (10) |
Net cash used in investing activities | (196.2) | (263.9) | (199.7) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of long-term debt | (324.6) | (1.8) | (2) |
Repurchases of common stock | (300.1) | (303.3) | (285.2) |
Common stock dividends | (280.3) | (238.4) | (195.5) |
Acquisition-related payments | (53.7) | (40.8) | (53.1) |
Tax payments for employee shares withheld | (38.8) | (23.1) | (17.6) |
Distributions to noncontrolling interests | (20.4) | (13.7) | (15.9) |
Exercise of stock options | 13.1 | 10.2 | 13.5 |
Net increase (decrease) in short-term borrowings | 3 | (56.2) | 51.8 |
Excess tax benefit on share-based compensation | 0 | 0 | 10.2 |
Other financing activities | (3.1) | 0.7 | 2.9 |
Net cash used in financing activities | (1,004.9) | (666.4) | (490.9) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 16.8 | 11.6 | (156.2) |
Net decrease in cash, cash equivalents and restricted cash | (302.5) | (405.9) | (158.3) |
Cash, cash equivalents and restricted cash at beginning of period | 1,100.2 | 1,506.1 | 1,664.4 |
Cash, cash equivalents and restricted cash at end of period | $ 797.7 | $ 1,100.2 | $ 1,506.1 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss, Net of Tax | Treasury Stock | Total IPG Stockholders' Equity | Noncontrolling Interests |
Balance at Dec. 31, 2014 | $ 2,151.2 | $ 41.2 | $ 1,547.5 | $ 1,183.3 | $ (636.7) | $ (19) | $ 2,116.3 | $ 34.9 |
Balance, shares at Dec. 31, 2014 | 412.8 | |||||||
Net income | 480.5 | 454.6 | 454.6 | 25.9 | ||||
Other comprehensive income | (213.1) | (208.9) | (208.9) | (4.2) | ||||
Reclassifications related to redeemable noncontrolling interests | (6) | (6) | ||||||
Distributions to noncontrolling interests | (15.9) | (15.9) | ||||||
Change in redemption value of redeemable noncontrolling interests | (3.9) | (3.9) | (3.9) | |||||
Repurchases of common stock | (285.2) | (285.2) | (285.2) | |||||
Retirement of treasury stock, shares | (11.3) | |||||||
Retirement of treasury stock | 0 | $ (1.2) | (232) | 233.2 | 0 | |||
Common stock dividends | (195.5) | (195.5) | (195.5) | |||||
Stock-based compensation, shares | 2.4 | |||||||
Stock-based compensation, Value | 83.4 | $ 0.3 | 83.1 | 83.4 | ||||
Exercise of stock options, shares | 1.3 | |||||||
Exercise of stock options, Value | 13.7 | $ 0.2 | 13.5 | 13.7 | ||||
Shares withheld for taxes, shares | (0.8) | |||||||
Shares withheld for taxes, Value | (17.8) | $ (0.1) | (17.7) | (17.8) | ||||
Excess tax benefit from stock-based compensation | 10.2 | 10.2 | 10.2 | |||||
Other | 0.2 | (0.5) | (0.9) | (1.4) | 1.6 | |||
Balance, shares at Dec. 31, 2015 | 404.4 | |||||||
Balance at Dec. 31, 2015 | 2,001.8 | $ 40.4 | 1,404.1 | 1,437.6 | (845.6) | (71) | 1,965.5 | 36.3 |
Net income | 632.5 | 608.5 | 608.5 | 24 | ||||
Other comprehensive income | (118) | (116.9) | (116.9) | (1.1) | ||||
Reclassifications related to redeemable noncontrolling interests | (5.8) | (5.8) | ||||||
Distributions to noncontrolling interests | (13.7) | (13.7) | ||||||
Change in redemption value of redeemable noncontrolling interests | (2.1) | (2.1) | (2.1) | |||||
Repurchases of common stock | (303.3) | (303.3) | (303.3) | |||||
Retirement of treasury stock, shares | (13.7) | |||||||
Retirement of treasury stock | 0 | $ (1.4) | (309.6) | 311 | 0 | |||
Common stock dividends | (238.4) | (238.4) | (238.4) | |||||
Stock-based compensation, shares | 3.5 | |||||||
Stock-based compensation, Value | 117.1 | $ 0.4 | 116.7 | 117.1 | ||||
Exercise of stock options, shares | 1.2 | |||||||
Exercise of stock options, Value | 10.3 | $ 0.1 | 10.2 | 10.3 | ||||
Shares withheld for taxes, shares | (1.1) | |||||||
Shares withheld for taxes, Value | (23.3) | $ (0.1) | (23.2) | (23.3) | ||||
Other | (0.4) | (1) | (1.3) | (0.3) | (0.1) | |||
Balance, shares at Dec. 31, 2016 | 394.3 | |||||||
Balance at Dec. 31, 2016 | 2,056.7 | $ 39.4 | 1,199.2 | 1,804.3 | (962.5) | (63.3) | 2,017.1 | 39.6 |
Net income | 595 | 579 | 579 | 16 | ||||
Other comprehensive income | 136.6 | 135.1 | 135.1 | 1.5 | ||||
Reclassifications related to redeemable noncontrolling interests | 0.6 | (0.3) | (0.3) | 0.9 | ||||
Distributions to noncontrolling interests | (20.9) | (20.9) | ||||||
Change in redemption value of redeemable noncontrolling interests | (7.9) | (7.9) | (7.9) | |||||
Repurchases of common stock | (300.1) | (300.1) | (300.1) | |||||
Retirement of treasury stock, shares | (13.4) | |||||||
Retirement of treasury stock | 0 | $ (1.3) | (303.1) | 304.4 | 0 | |||
Common stock dividends | (280.3) | (280.3) | (280.3) | |||||
Stock-based compensation, shares | 5.7 | |||||||
Stock-based compensation, Value | 87 | $ 0.6 | 86.4 | 87 | ||||
Exercise of stock options, shares | 1.2 | |||||||
Exercise of stock options, Value | 13.2 | $ 0.1 | 13.1 | 13.2 | ||||
Shares withheld for taxes, shares | (1.6) | |||||||
Shares withheld for taxes, Value | (39) | $ (0.2) | (38.8) | (39) | ||||
Other | (5.1) | (1.3) | (1.5) | (2.8) | (2.3) | |||
Balance, shares at Dec. 31, 2017 | 386.2 | |||||||
Balance at Dec. 31, 2017 | $ 2,235.8 | $ 38.6 | $ 955.2 | $ 2,093.6 | $ (827.4) | $ (59) | $ 2,201 | $ 34.8 |
Significant Accounting Policies
Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business Description The Interpublic Group of Companies, Inc. and subsidiaries (the “Company,” “IPG,” “we,” “us” or “our”) is one of the world’s premier global advertising and marketing services companies. Our agencies create customized marketing programs for clients that range in scale from large global marketers to regional and local clients. Comprehensive global services are critical to effectively serve our multinational and local clients in markets throughout the world, as they seek to build brands, increase sales of their products and services and gain market share. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its consolidated subsidiaries, some of which are not wholly owned. Investments in companies over which we do not have control, but have the ability to exercise significant influence, are accounted for using the equity method of accounting. Investments in companies over which we have neither control nor have the ability to exercise significant influence are accounted for under the cost method. All intercompany accounts and transactions have been eliminated in consolidation. We have consolidated certain entities meeting the definition of variable interest entities, and the inclusion of these entities does not have a material impact on our Consolidated Financial Statements. Reclassifications Certain reclassifications and immaterial revisions have been made to the prior period financial statements to conform to the current-year presentation. We plan to adopt a new presentation for our Consolidated Statements of Operations beginning the first quarter of 2018 which will separately present Cost of services; Selling, general and administrative expenses; and Depreciation and amortization within our Operating expenses. For the years ended December 31, 2017 and 2016, our Selling, general and administrative expenses were $118.6 and $138.8 , respectively, which are primarily the expenses of our “Corporate and other” group, as disclosed further in Note 12 , excluding depreciation and amortization. For the years ended December 31, 2017 and 2016, Depreciation and amortization were $157.1 and $160.2 , respectively, which is also presented on the Consolidated Statements of Cash Flows. This change in presentation of expenses does not impact total operating expenses or operating income. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires us to make judgments, assumptions and estimates that affect the amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the reporting date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and assumptions. Revenue Recognition Our revenues are primarily derived from the planning and execution of multi-channel advertising, marketing and communications programs around the world. Our revenues are directly dependent upon the advertising, marketing and corporate communications requirements of our existing clients and our ability to win new clients. Our revenue is typically lowest in the first quarter and highest in the fourth quarter. This reflects the seasonal spending of our clients, incentives earned at year end on various contracts and project work that is typically completed during the fourth quarter. Most of our client contracts are individually negotiated and, accordingly, the terms of client engagements and the bases on which we earn commissions and fees vary significantly. As is customary in the industry, our contracts generally provide for termination by either party on relatively short notice, usually 90 days. Our client contracts are complex arrangements that may include provisions for incentive compensation and vendor rebates and credits. Our largest clients are multinational entities and, as such, we often provide services to these clients out of multiple offices and across many of our agencies. In arranging for such services, it is possible that we will enter into global, regional and local agreements. Agreements of this nature are reviewed by legal counsel to determine the governing terms to be followed by the offices and agencies involved. Revenue for our services is recognized when all of the following criteria are satisfied: (i) persuasive evidence of an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) services have been performed. Depending on the terms of a client contract, fees for services performed can be recognized in three principal ways: proportional performance (input or output), straight-line (or monthly basis) or completed contract. • Fees are generally recognized as earned based on the proportional performance input method of revenue recognition in situations where our fee is reconcilable to the actual hours incurred to service the client as detailed in a contractual staffing plan, where the fee is earned on a per hour basis or where actual hours incurred are provided to the client on a periodic basis (whether or not the fee is reconcilable), with the amount of revenue recognized in these situations limited to the amount realizable under the client contract. We believe an input-based measure (the ‘hour’) is appropriate in situations where the client arrangement essentially functions as a time and out-of-pocket expense contract and the client receives the benefit of the services provided throughout the contract term. • Fees are recognized on a straight-line or monthly basis when service is provided essentially on a pro-rata basis and the terms of the contract support monthly basis accounting. • Certain fees (such as for major marketing events) are deferred until contract completion if the final act is so significant in relation to the service transaction taken as a whole or if any of the terms of the contract do not otherwise qualify for proportional performance or monthly basis recognition. Fees may also be deferred and recognized upon delivery of a project if the terms of the client contract identify individual discrete projects. Depending on the terms of the client contract, revenue is derived from diverse arrangements involving fees for services performed, commissions, performance incentive provisions and combinations of the three. Commissions are generally earned on the date of the broadcast or publication. Contractual arrangements with clients may also include performance incentive provisions designed to link a portion of our revenue to our performance relative to either qualitative or quantitative goals, or both. Performance incentives are recognized as revenue for quantitative targets when the target has been achieved and for qualitative targets when confirmation of the incentive is received from the client. The majority of our revenue is recorded as the net amount of our gross billings less pass-through expenses charged to a client. In most cases, the amount that is billed to clients significantly exceeds the amount of revenue that is earned and reflected in our Consolidated Financial Statements because of various pass-through expenses, such as production and media costs. We assess whether our agency or the third-party supplier is the primary obligor, and we evaluate the terms of our client agreements as part of this assessment. In addition, we give appropriate consideration to other key indicators such as latitude in establishing price, discretion in supplier selection and credit risk to the vendor. Because we operate broadly as an advertising agency, based on our primary lines of business and given the industry practice to generally record revenue on a net versus gross basis, we believe that there must be strong evidence in place to overcome the presumption of net revenue accounting. Accordingly, we generally record revenue net of pass-through charges as we believe the key indicators of the business suggest we generally act as an agent on behalf of our clients in our primary lines of business. In those businesses where the key indicators suggest we act as a principal (primarily sales promotion and event, sports and entertainment marketing), we record the gross amount billed to the client as revenue and the related incremental direct costs incurred as office and general expenses. In general, we also report revenue net of taxes assessed by governmental authorities that are directly imposed on our revenue-producing transactions. As we provide services as part of our core operations, we generally incur incidental expenses, which, in practice, are commonly referred to as “out-of-pocket” expenses. These expenses often include expenses related to airfare, mileage, hotel stays, out-of-town meals and telecommunication charges. We record the reimbursements received for such incidental expenses as revenue with a corresponding offset to office and general expense. We receive credits from our vendors and media outlets for transactions entered into on behalf of our clients that, based on the terms of our contracts and local law, are either remitted to our clients or retained by us. If amounts are to be passed through to clients, they are recorded as liabilities until settlement or, if retained by us, are recorded as revenue when earned. Cash and Cash Equivalents Cash equivalents are highly liquid investments, which include certificates of deposit, government securities, commercial paper and time deposits with original maturities of three months or less at the time of purchase and are stated at estimated fair value, which approximates cost. Cash is maintained at multiple high-credit-quality financial institutions. Allowance for Doubtful Accounts The allowance for doubtful accounts is estimated based on the aging of accounts receivable, reviews of client credit reports, industry trends and economic indicators, as well as reviews of recent payment history for specific customers. The estimate is based largely on a formula-driven calculation but is supplemented with economic indicators and knowledge of potential write-offs of specific client accounts. Expenditures Billable to Clients Expenditures billable to clients are primarily comprised of production and media costs that have been incurred but have not yet been billed to clients, as well as fees that have been earned which have not yet been billed to clients. Unbilled amounts are presented in expenditures billable to clients regardless of whether they relate to our fees or production and media costs. A provision is made for unrecoverable costs as deemed appropriate. Accounts Payable Accounts payable includes all operating payables, including those related to all media and production costs. These payables are due within one year. Investments Our investments in short-term marketable securities include investment-grade time deposits, commercial paper, government securities with maturities greater than three months but less than twelve months and publicly traded companies over which we do not exert a significant influence. These investments are classified as available-for-sale and reported at fair value based on quoted market prices with net unrealized gains and losses reported as a component of accumulated other comprehensive loss. Our non-publicly traded investments and all other publicly traded investments, including investments to fund certain deferred compensation and retirement obligations, are accounted for using the equity method or cost method. We do not disclose the fair value for all equity method investments or investments held at cost as it is not practical to estimate fair value since there is no readily available market data and it is cost prohibitive to obtain independent valuations. We regularly review our equity and cost method investments to determine whether a significant event or change in circumstances has occurred that may impact the fair value of each investment. In the event a decline in fair value of an investment occurs, we determine if the decline has been other-than-temporary. We consider our investments strategic and long-term in nature, so we determine if the fair value decline is recoverable within a reasonable period. For our investments, we evaluate fair value based on specific information (valuation methodologies, estimates of appraisals, financial statements, etc.) in addition to quoted market price, if available. We consider all known quantitative and qualitative factors in determining if an other-than-temporary decline in value of an investment has occurred. Derivatives We are exposed to market risk related to interest rates, foreign currency rates and certain balance sheet items. From time to time we enter into derivative instruments for risk management purposes, and not for speculative purposes. All derivative instruments are recorded at fair value on our balance sheet. Changes in fair value are immediately included in earnings if the derivatives are not designated as a hedge instrument or if the derivatives do not qualify as effective hedges. For derivatives designated as hedge instruments, we evaluate for hedge accounting both at inception and throughout the hedge period. If a derivative is designated as a fair value hedge, then changes in the fair value of the derivative are offset against the changes in the fair value of the underlying hedged item. If a derivative is designated as a cash flow hedge, then the effective portion of the changes in the fair value of the derivative is recognized as a component of accumulated other comprehensive income and subsequently reclassified to earnings in our Consolidated Statement of Operations in the same period as the underlying hedged transaction affects earnings. Property and Equipment Furniture, equipment, leasehold improvements and buildings are stated at cost, net of accumulated depreciation. Furniture and equipment are depreciated generally using the straight-line method over the estimated useful lives of the related assets, which range from 3 to 7 years for furniture and equipment, 10 to 35 years for buildings and the shorter of the useful life or the remaining lease term for leasehold improvements. Land is stated at cost and is not depreciated. We capitalize certain internal and external costs incurred to acquire or create internal use software, principally related to our enterprise resource planning (“ERP”) systems. Our ERP systems are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over 10 years. All other internal use computer software are stated at cost, net of accumulated amortization and are amortized using the straight-line method over the estimated useful lives of the related assets, which range from 3 to 7 years. Goodwill and Other Intangible Assets We account for our business combinations using the acquisition accounting method, which requires us to determine the fair value of net assets acquired and the related goodwill and other intangible assets. Determining the fair value of assets acquired and liabilities assumed requires management's judgment and involves the use of significant estimates, including projections of future cash inflows and outflows, discount rates, asset lives and market multiples. Considering the characteristics of advertising, specialized marketing and communication services companies, our acquisitions usually do not have significant amounts of tangible assets, as the principal asset we typically acquire is creative talent. As a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. We review goodwill and other intangible assets with indefinite lives not subject to amortization as of October 1 st each year and whenever events or significant changes in circumstances indicate that the carrying value may not be recoverable. We evaluate the recoverability of goodwill at a reporting unit level. We have 11 reporting units that were subject to the 2017 annual impairment testing. Our annual impairment review as of October 1, 2017 did not result in an impairment charge for any of our reporting units. For reporting units not included in the qualitative assessment, or for any reporting units identified in the qualitative assessment as "more likely than not" that the fair value is less than its carrying value, the quantitative impairment test is performed. For our annual impairment test, we compare the respective fair value of our reporting units' equity to the carrying value of their net assets. The sum of the fair values of all our reporting units is also reconciled to our current market capitalization plus an estimated control premium. Goodwill allocated to a reporting unit whose fair value is equal to or greater than its carrying value is not impaired, and no further testing is required. Should the carrying amount for a reporting unit exceed its fair value, then the quantitative impairment test is failed and impaired goodwill is written down to its fair value with a charge to expense in the period the impairment is identified. The fair value of each reporting unit for 2017 and 2016 was estimated using a combination of the income approach, which incorporates the use of the discounted cash flow method, and the market approach, which incorporates the use of earnings and revenue multiples based on market data. We review intangible assets with definite lives subject to amortization whenever events or circumstances indicate that a carrying amount of an asset may not be recoverable. Recoverability of these assets is determined by comparing the carrying value of these assets to the estimated undiscounted future cash flows expected to be generated by these assets. These assets are impaired when their carrying value exceeds their fair value. Impaired intangible assets with definite lives subject to amortization are written down to their fair value with a charge to expense in the period the impairment is identified. Intangible assets with definite lives are amortized on a straight-line basis with estimated useful lives generally between 7 and 15 years. Events or circumstances that might require impairment testing include the loss of a significant client, the identification of other impaired assets within a reporting unit, loss of key personnel, the disposition of a significant portion of a reporting unit, significant decline in stock price or a significant adverse change in business climate or regulations. Foreign Currencies The functional currency of our foreign operations is generally their respective local currency. Assets and liabilities are translated at the exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rates during the period presented. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss in the stockholders’ equity section of our Consolidated Balance Sheets. Currency transaction gains or losses primarily arising from transactions in currencies other than the functional currency are included in office and general expenses. Foreign currency transactions resulted in pre-tax gains of $1.9 , $2.1 and $2.0 in for the years ended December 31, 2017 , 2016 and 2015 , respectively. We monitor the currencies of countries in which we operate in order to determine if the country should be considered a highly inflationary environment. A currency is determined to be highly inflationary when there is cumulative inflation of approximately 100% or more over a three-year period. If this occurs the functional currency of that country would be changed to our reporting currency, the U.S. Dollar, and foreign exchange gains or losses would be recognized on all monetary transactions, assets and liabilities in currencies other than the U.S. Dollar until the currency is no longer considered highly inflationary. Income Taxes The provision for income taxes includes U.S. federal, state, local and foreign taxes. Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. We evaluate the realizability of our deferred tax assets and establish a valuation allowance when it is “more likely than not” that all or a portion of the deferred tax assets will not be realized. We evaluate our tax positions using the “more likely than not” recognition threshold and then apply a measurement assessment to those positions that meet the recognition threshold. The factors used in assessing valuation allowances include all available evidence, such as past operating results, estimates of future taxable income and the feasibility of tax planning strategies. We have established tax reserves that we believe to be adequate in relation to the potential for additional assessments in each of the jurisdictions in which we are subject to taxation. We regularly assess the likelihood of additional tax assessments in those jurisdictions and adjust our reserves as additional information or events require. In response to the enactment of the Tax Act, the SEC issued SAB 118 on December 22, 2017, which acknowledges that the information necessary to determine such income tax effects may not be sufficiently available, prepared or analyzed in reasonable detail to complete the accounting under U.S. GAAP. SAB 118 allows for the reporting of provisional amounts for those specific tax effects for which a reasonable estimate can be made, and for no amounts to be recorded where a reasonable estimate cannot be made. Any subsequent adjustments to reported amounts will be made over the measurement period, which begins in the reporting period that includes the Tax Act's enactment date and ends when an entity has obtained, prepared and analyzed the information that is needed in order to complete the accounting requirements under U.S. GAAP, not to exceed one year from the enactment date. We have reasonably estimated and recorded provisional amounts resulting from the enactment of the Tax Act. Refer to Note 7 to our Consolidated Financial Statements for further information. Redeemable Noncontrolling Interests Many of our acquisitions include provisions under which the noncontrolling equity owners can require us to purchase additional interests in a subsidiary at their discretion. Payments for these redeemable noncontrolling interests may be contingent on projected operating performance and satisfying other conditions specified in the related agreements. These payments are also subject to revision in accordance with the terms of the agreements. We record these redeemable noncontrolling interests in “mezzanine equity” in our Consolidated Balance Sheets. Each reporting period, redeemable noncontrolling interests are reported at their estimated redemption value, but not less than their initial fair value. Any adjustment to the redemption value above initial value prior to exercise will also impact retained earnings or additional paid-in capital (“APIC”), but will not impact net income. Adjustments as a result of currency translation will affect the redeemable noncontrolling interest balance, but do not impact retained earnings or additional paid-in capital. Earnings Per Share (“EPS”) Basic EPS available to IPG common stockholders equals net income available to IPG common stockholders divided by the weighted-average number of common shares outstanding for the applicable period. Diluted EPS equals net income available to IPG common stockholders divided by the weighted-average number of common shares outstanding, plus any additional common shares that would have been outstanding if potentially dilutive shares had been issued. Diluted EPS reflect the potential dilution that would occur if certain potentially dilutive securities were exercised. The potential issuance of common stock is assumed to occur at the beginning of the year (or at the time of issuance of the potentially dilutive instrument, if later) and the incremental shares are included using the treasury stock method. The proceeds utilized in applying the treasury stock method consist of the amount, if any, to be paid upon exercise and, as it relates to stock-based compensation, the amount of compensation cost attributed to future service not yet recognized. These proceeds are then assumed to be used to purchase common stock at the average market price of our stock during the period. The incremental shares (difference between the shares assumed to be issued and the shares assumed to be purchased), to the extent they would have been dilutive, are included in the denominator of the diluted EPS calculation. We may be required to calculate basic EPS using the two-class method as a result of our redeemable noncontrolling interests. To the extent that the redemption value increases and exceeds the then-current fair value of a redeemable noncontrolling interest, net income available to IPG common stockholders (used to calculate EPS) could be negatively impacted by that increase, subject to certain limitations. The partial or full recovery of any reductions to net income available to IPG common stockholders (used to calculate EPS) is limited to any cumulative prior-period reductions. For the years ended December 31, 2017 , 2016 and 2015 , there was no impact to EPS for adjustments related to our redeemable noncontrolling interests. Pension and Postretirement Benefits We have pension and postretirement benefit plans covering certain domestic and international employees. We use various actuarial methods and assumptions in determining our net pension and postretirement benefit costs and obligations, including the discount rate used to determine the present value of future benefits, expected long-term rate of return on plan assets and healthcare cost trend rates. The overfunded or underfunded status of our pension and postretirement benefit plans is recorded on our Consolidated Balance Sheet. Stock-Based Compensation Compensation costs related to share-based transactions, including employee stock options, are recognized in the Consolidated Financial Statements based on fair value. Stock-based compensation expense is generally recognized ratably over the requisite service period based on the estimated grant-date fair value, net of estimated forfeitures. Treasury Stock We account for repurchased common stock under the cost method and include such treasury stock as a component of our Consolidated Statements of Stockholders' Equity. Upon retirement, we reduce common stock for the par value of the shares being retired and the excess of the cost of the shares over par value as a reduction to APIC, to the extent there is APIC in the same class of stock, and any remaining amount to retained earnings. These retired shares remain authorized but unissued. In October and November 2017, we retired 13.4 shares of our treasury stock, which resulted in a reduction in common stock of $1.3 , treasury stock of $304.4 and APIC of $303.1 . In October 2016, we retired 13.7 shares of our treasury stock, which resulted in a reduction in common stock of $1.4 , treasury stock of $311.0 and APIC of $309.6 . In October 2015, we retired 11.3 shares of our treasury stock, which resulted in a reduction in common stock of $1.2 , treasury stock of $233.2 and APIC of $232.0 . There was no effect on total stockholders' equity as a result of these retirements. |
Debt and Credit Agreements (Not
Debt and Credit Agreements (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt and Credit Arrangements Long-Term Debt A summary of the carrying amounts and fair values of our long-term debt is listed below. Effective Interest Rate December 31, 2017 2016 Book Value Fair Value 1 Book Value Fair 1 2.25% Senior Notes due 2017 2.30 % $ 0.0 $ 0.0 $ 299.4 $ 301.4 4.00% Senior Notes due 2022 (less unamortized discount and issuance costs of $1.3 and $1.1, respectively) 4.13 % 247.6 259.0 247.0 258.4 3.75% Senior Notes due 2023 (less unamortized discount and issuance costs of $0.8 and $2.1, respectively) 4.32 % 497.1 513.2 496.6 503.3 4.20% Senior Notes due 2024 (less unamortized discount and issuance costs of $0.7 and $2.6, respectively) 4.24 % 496.7 524.2 496.2 511.6 Other notes payable and capitalized leases 46.2 46.2 65.4 65.4 Total long-term debt 1,287.6 1,604.6 Less: current portion 2.0 323.9 Long-term debt, excluding current portion $ 1,285.6 $ 1,280.7 1 See Note 10 for information on the fair value measurement of our long-term debt. Annual maturities are scheduled as follows based on the book value as of December 31, 2017 . 2018 $ 2.0 2019 3.1 2020 1.0 2021 0.0 2022 247.6 Thereafter 1,033.9 Total long-term debt $ 1,287.6 For those debt securities that have a premium or discount at the time of issuance, we amortize the amount through interest expense based on the maturity date or the first date the holders may require us to repurchase the debt securities, if applicable. A premium would result in a decrease in interest expense, and a discount would result in an increase in interest expense in future periods. Additionally, we have debt issuance costs related to certain financing transactions which are also amortized through interest expense. As of December 31, 2017 and 2016 , we had total unamortized debt issuance costs of $13.0 and $12.3 , respectively. Our debt securities include covenants that, among other things, limit our liens and the liens of certain of our consolidated subsidiaries, but do not require us to maintain any financial ratios or specified levels of net worth or liquidity. Long-Term Debt Transactions 2.25% Senior Notes due 2017 In November 2017 , we redeemed all $300.0 in aggregate principal amount of the 2.25% Senior Notes due 2017 (the "2.25% Notes"). Total cash paid to redeem the 2.25% Notes was $303.4 , which included accrued and unpaid interest of $3.4 . Credit Agreements We maintain a committed corporate credit facility, which has been amended and restated from time to time (the "Credit Agreement"). The Credit Agreement is a revolving facility, under which amounts borrowed by us or any of our subsidiaries designated under the Credit Agreement may be repaid and reborrowed, subject to an aggregate lending limit. On October 25, 2017 , we amended and restated our committed credit agreement, originally dated as of July 18, 2008 (as amended and restated, the "Credit Agreement"), increasing the revolving commitments from $1,000.0 to $1,500.0 , or the equivalent in other specified currencies, and extending the Credit Agreement's expiration to October 25, 2022 . We use our Credit Agreement to increase our financial flexibility, to provide letters of credit primarily to support obligations of our subsidiaries and to support our commercial paper program. The Company has the ability to increase the commitments under the Credit Agreement from time to time by an additional amount of up to $250.0 , provided the Company receives commitments for such increases and satisfies certain other conditions. The aggregate available amount of letters of credit outstanding may decrease or increase, subject to a sublimit on letters of credit of $50.0 , or the equivalent in other currencies. Our obligations under the Credit Agreement are unsecured. As of December 31, 2017 and 2016 , there were no borrowings under the Credit Agreement; however, we had $8.4 and $4.9 of letters of credit under the Credit Agreement, which reduced our total availability to $1,491.6 and $995.1 , respectively. Under the Credit Agreement, we can elect to receive advances bearing interest based on either the base rate or the Eurocurrency rate (each as defined in the Credit Agreement) plus an applicable margin that is determined based on our credit ratings. As of December 31, 2017 , the applicable margin was 0.10% for base rate advances and 1.10% for Eurocurrency rate advances. Letter of credit fees accrue on the average daily aggregate amount of letters of credit outstanding, at a rate equal to the applicable margin for Eurocurrency rate advances, and fronting fees accrue on the aggregate amount of letters of credit outstanding at an annual rate of 0.25% . We also pay a facility fee at an annual rate that is determined based on our credit ratings, which as of December 31, 2017 , was 0.15% on the aggregate lending commitment under the Credit Agreement. In addition to other and customary covenants, the Credit Agreement requires that we maintain the financial covenants listed below as of the end of each fiscal quarter for the period of four fiscal quarters then ended. We were in compliance with all of our covenants in the Credit Agreement as of December 31, 2017 . Interest coverage ratio (not less than): 1 5.00x Leverage ratio (not greater than): 2 3.50x 1 The interest coverage ratio is defined as EBITDA, as defined in the Credit Agreement, to net interest expense for the four quarters then ended. 2 The leverage ratio is defined as debt as of the last day of such fiscal quarter to EBITDA, as defined in the Credit Agreement, for the four quarters then ended. The leverage ratio may be changed to not more than 4.00 to 1 at our election for four consecutive fiscal quarters, beginning with the fiscal quarter in which there is an occurrence of one or more acquisitions with an aggregate purchase price of at least $200.0. We also have uncommitted lines of credit with various banks which permit borrowings at variable interest rates and which are primarily used to fund working capital needs. We have guaranteed the repayment of some of these borrowings made by certain subsidiaries. If we lose access to these credit lines, we would have to provide funding directly to some of our operations. As of December 31, 2017 and 2016 , the Company had uncommitted lines of credit in an aggregate amount of $926.2 and $856.6 , under which we had outstanding borrowings of $84.9 and $85.7 classified as short-term borrowings on our Consolidated Balance Sheets, respectively. The average amounts outstanding during 2017 and 2016 were $223.8 and $216.0 , respectively, with weighted-average interest rates of approximately 2.9% for both periods. Commercial Paper In June 2017 , the Company established a commercial paper program under which the Company was authorized to issue unsecured commercial paper up to a maximum aggregate amount outstanding at any time of $1,000.0 , which was increased to $1,500.0 on October 25, 2017 . Borrowings under the program are supported by the Credit Agreement described above. Proceeds of the commercial paper are used for working capital and general corporate purposes, including the repayment of maturing indebtedness and other short-term liquidity needs. The maturities of the commercial paper vary but may not exceed 397 days from the date of issue. As of December 31, 2017 , there was no commercial paper outstanding. From the date the program was first utilized through December 31, 2017 , the average amount outstanding under the program was $477.4 , with a weighted-average interest rate of 1.5% and a weighted-average maturity of seventeen days. Cash Pooling We aggregate our domestic cash position on a daily basis. Outside the United States, we use cash pooling arrangements with banks to help manage our liquidity requirements. In these pooling arrangements, several IPG agencies agree with a single bank that the cash balances of any of the agencies with the bank will be subject to a full right of set-off against amounts other agencies owe the bank, and the bank provides for overdrafts as long as the net balance for all agencies does not exceed an agreed-upon level. Typically, each agency pays interest on outstanding overdrafts and receives interest on cash balances. Our Consolidated Balance Sheets reflect cash, net of bank overdrafts, under all of our pooling arrangements, and as of December 31, 2017 and 2016 the amounts netted were $1,412.0 and $1,300.6 , respectively. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following sets forth basic and diluted earnings per common share available to IPG common stockholders. Years ended December 31, 2017 2016 2015 Net income available to IPG common stockholders $ 579.0 $ 608.5 $ 454.6 Weighted-average number of common shares outstanding - basic 389.6 397.9 408.1 Dilutive effect of stock options and restricted shares 7.7 10.1 7.6 Weighted-average number of common shares outstanding - diluted 397.3 408.0 415.7 Earnings per share available to IPG common stockholders: Basic $ 1.49 $ 1.53 $ 1.11 Diluted $ 1.46 $ 1.49 $ 1.09 |
Acquisitions (Notes)
Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions We continue to evaluate strategic opportunities to expand our industry expertise, strengthen our position in high-growth and key strategic geographical markets and industry sectors, advance technological capabilities and improve operational efficiency through both acquisitions and increased ownership interests in current investments. Our acquisitions typically provide for an initial payment at the time of closing and additional contingent purchase price payments based on the future performance of the acquired entity. We have entered into agreements that may require us to purchase additional equity interests in certain consolidated and unconsolidated subsidiaries. The amounts at which we record these transactions in our financial statements are based on estimates of the future financial performance of the acquired entity, the timing of the exercise of these rights, changes in foreign currency exchange rates and other factors. During 2017 , we completed ten acquisitions, eight of which were included in the Integrated Agency Networks ("IAN") operating segment, and two of which were included in the Constituency Management Group ("CMG") operating segment. These acquisitions included a digital marketing agency based in the U.S., a data science and business intelligence firm based in the U.S. with operations in China, an advertising and consulting company based in Indonesia, a strategic communications agency based in the U.K., an independent creative agency based in the U.K., a retail branding and design firm based in the U.S., a content creation and marketing agency based in the Netherlands, an independent media agency and digital consultancy based in Finland, and an integrated marketing communications agency based in Canada. During 2017 , we recorded approximately $62.0 of goodwill and intangible assets related to our acquisitions. During 2016 , we completed ten acquisitions, three of which were included in the IAN operating segment, and seven of which were included in the CMG operating segment. The most significant acquisitions included a product and service design consultancy based in the U.S., an integrated healthcare marketing communications agency based in the U.S., a content creation and digital agency with offices in the U.S. and the U.K., a mobile consultancy and application development agency based in the U.K., a full-service public relations and digital agency based in China, a search engine optimization and digital content marketing agency based in the U.K., and a mobile focused digital agency based in the U.K. During 2016 , we recorded approximately $149.0 of goodwill and intangible assets related to these acquisitions. During 2015 , we completed five acquisitions, four of which were included in the IAN operating segment, and one of which was included in the CMG operating segment. The most significant acquisitions included a full-service digital agency in the U.K., a group of creative marketing agencies based in Russia, and a media planning and buying agency with significant digital capabilities in Canada. During 2015 , we recorded approximately $61.0 of goodwill and intangible assets related to these acquisitions. The results of operations of our acquired companies were included in our consolidated results from the closing date of each acquisition. We did not make any payments in stock related to our acquisitions in 2017 , 2016 or 2015 . Details of cash paid for current and prior years' acquisitions are listed below. Years ended December 31, 2017 2016 2015 Cost of investment: current-year acquisitions $ 36.8 $ 65.7 $ 37.8 Cost of investment: prior-year acquisitions 54.6 40.7 53.1 Less: net cash acquired (7.1 ) (13.6 ) (9.2 ) Total cost of investment 84.3 92.8 81.7 Operating payments 1 47.1 19.1 18.4 Total cash paid for acquisitions 2 $ 131.4 $ 111.9 $ 100.1 1 Represents cash payments for amounts that have been recognized in operating expenses since the date of acquisition either relating to adjustments to estimates in excess of the initial value of contingent payments recorded or were contingent upon the future employment of the former owners of the acquired companies. Amounts are reflected in the operating section of the Consolidated Statements of Cash Flows. 2 Of the total cash paid for acquisitions, $30.6 , $52.0 and $28.6 for the years ended December 31, 2017 , 2016 and 2015 , respectively, are classified under the investing section of the Consolidated Statements of Cash Flows as acquisitions, net of cash acquired. These amounts relate to initial payments for new transactions. Of the total cash paid for acquisitions, $53.7 , $40.8 and $53.1 for the years ended December 31, 2017 , 2016 and 2015 , respectively, are classified under the financing section of the Consolidated Statements of Cash Flows as acquisition-related payments. These amounts relate to deferred payments and increases in our ownership interest for prior acquisitions. For companies acquired, we estimate the fair values of the assets and liabilities based on 100% of the business for consolidation. The purchase price in excess of the estimated fair value of the tangible net assets acquired is allocated to identifiable intangible assets and then to goodwill. Due to the characteristics of advertising, specialized marketing and communication services companies, our acquisitions typically do not have significant amounts of tangible assets since the principal assets we acquire are client relationships and talent. As a result, a substantial portion of the purchase price is primarily allocated to customer lists, trade names and goodwill. For acquisitions we record deferred payment and redeemable noncontrolling interest amounts on our Consolidated Balance Sheets based on their acquisition-date fair value. Deferred payments are recorded on a discounted basis and adjusted quarterly, if necessary, through operating income or net interest expense, depending on the nature of the arrangement, for both changes in estimate and accretion between the acquisition date and the final payment date. See Note 13 for further information on contingent acquisition obligations. Redeemable noncontrolling interests are adjusted quarterly to their estimated redemption value, but not less than their initial fair value. Any adjustments to the redemption value impact retained earnings, except for foreign currency translation adjustments. The following table presents changes in our redeemable noncontrolling interests. Years ended December 31, 2017 2016 2015 Balance at beginning of period $ 252.8 $ 251.9 $ 257.4 Change in related noncontrolling interests balance (2.8 ) 4.9 0.8 Changes in redemption value of redeemable noncontrolling interests: Additions 7.7 6.8 16.5 Redemptions and other (18.5 ) (14.8 ) (25.1 ) Redemption value adjustments 12.9 4.0 2.3 Balance at end of period $ 252.1 $ 252.8 $ 251.9 For all acquisitions, if a portion of the deferred payments and purchases of additional interests after the effective date of purchase are contingent upon employment terms, then that amount is accounted for separately from the business combination and recognized as compensation expense over the required earn-out period. Payments deemed as compensation are excluded from the fair value purchase price allocation to tangible net assets and intangible assets acquired. |
Supplementary Data (Notes)
Supplementary Data (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Data [Abstract] | |
Supplementary Data | Supplementary Data Valuation and Qualifying Accounts – Allowance for Uncollectible Accounts Receivable Years ended December 31, 2017 2016 2015 Balance at beginning of period $ 55.7 $ 54.2 $ 59.5 Charges to costs and expenses 9.5 16.7 11.4 Deductions: Dispositions (1.0 ) (2.5 ) (2.8 ) Uncollectible accounts written off (25.5 ) (9.4 ) (9.8 ) Foreign currency translation adjustments 4.0 (3.3 ) (4.1 ) Balance at end of period $ 42.7 $ 55.7 $ 54.2 Property and Equipment December 31, 2017 2016 Furniture and equipment $ 634.8 $ 604.2 Leasehold improvements 641.5 599.8 Internal-use computer software 331.3 306.5 Land and buildings 79.0 73.1 Gross property and equipment 1,686.6 1,583.6 Less: accumulated depreciation (1,036.2 ) (961.6 ) Total property and equipment, net $ 650.4 $ 622.0 Total depreciation and amortization expense for property and equipment for the years ended December 31, 2017 , 2016 and 2015 was $135.9 , $138.3 and $130.9 , respectively. Accrued Liabilities The following table presents the components of accrued liabilities. December 31, 2017 2016 Salaries, benefits and related expenses $ 441.7 $ 499.0 Office and related expenses 53.2 46.7 Acquisition obligations 42.0 77.5 Interest 16.4 17.3 Other 121.4 153.5 Total accrued liabilities $ 674.7 $ 794.0 Other Expense, net Results of operations include certain items that are not directly associated with our revenue-producing operations. Years ended December 31, 2017 2016 2015 Net losses on sales of businesses $ (24.1 ) $ (41.4 ) $ (50.0 ) Other (2.1 ) 1.1 0.4 Total other expense, net $ (26.2 ) $ (40.3 ) $ (49.6 ) Net losses on sales of businesses – During 2017 , the amounts recognized were primarily related to sales of businesses and the classification of certain assets and liabilities, consisting primarily of cash, accounts receivable and accounts payable, as held for sale within our IAN operating segment. The businesses held for sale as of year end primarily represent unprofitable, non-strategic agencies which are expected to be sold within the next twelve months. During 2016, the amounts recognized were related to sales of businesses and the classification of certain assets and liabilities, consisting primarily of accounts receivable and accounts payable, as held for sale within both our IAN and CMG operating segments. During 2015, the amounts recognized were related to sales of businesses within both our IAN and CMG operating segments and the classification of certain assets and liabilities, consisting primarily of accounts receivable and accounts payable, as held for sale within our IAN operating segment. Share Repurchase Program In February 2017, our Board of Directors (the "Board") authorized a new share repurchase program to repurchase from time to time up to $300.0 , excluding fees, of our common stock (the "2017 Share Repurchase Program"), which was in addition to the remaining amount available to be repurchased from the $300.0 authorization made by the Board in February 2016 (the "2016 Share Repurchase Program"). We may effect such repurchases through open market purchases, trading plans established in accordance with U.S. Securities and Exchange Commission ("SEC") rules, derivative transactions or other means. We expect to continue to repurchase our common stock in future periods, although the timing and amount of the repurchases will depend on market conditions and other funding requirements. The following table presents our share repurchase activity under our share repurchase programs. Years ended December 31, 2017 2016 2015 Number of shares repurchased 13.7 13.3 13.6 Aggregate cost, including fees $ 300.1 $ 303.3 $ 285.2 Average price per share, including fees $ 21.97 $ 22.76 $ 20.97 We fully utilized the 2016 Share Repurchase Program in the third quarter of 2017. As of December 31, 2017 , $155.5 remained available for repurchase under the 2017 Share Repurchase Program. The 2017 Share Repurchase Program has no expiration date. Supplemental Cash Flow Information Years ended December 31, 2017 2016 2015 Cash paid for interest $ 82.3 $ 78.8 $ 74.5 Cash paid for income taxes, net of refunds 1 228.4 244.1 231.9 1 Refunds of $31.9 , $26.6 and $13.0 were received for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Intangible Assets (Notes)
Intangible Assets (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Intangible Assets Goodwill Goodwill is the excess purchase price remaining from an acquisition after an allocation of purchase price has been made to identifiable assets acquired and liabilities assumed based on estimated fair values. The changes in the carrying value of goodwill for our segments, IAN and CMG, for the years ended December 31, 2017 and 2016 are listed below. IAN CMG Total 1 Balance as of December 31, 2015 $ 3,051.4 $ 557.1 $ 3,608.5 Acquisitions 32.7 89.3 122.0 Foreign currency and other (40.3 ) (15.8 ) (56.1 ) Balance as of December 31, 2016 $ 3,043.8 $ 630.6 $ 3,674.4 Acquisitions 39.6 15.5 55.1 Foreign currency and other 78.4 12.5 90.9 Balance as of December 31, 2017 $ 3,161.8 $ 658.6 $ 3,820.4 1 For all periods presented, no goodwill impairment charge has been recorded. See Note 1 for information regarding our annual impairment methodology. Other Intangible Assets Other intangible assets are comprised of both assets with indefinite lives not subject to amortization and assets with definite lives subject to amortization. Other intangible assets primarily consist of customer lists and trade names, which have definitive lives and are subject to amortization on a straight-line basis with estimated useful lives generally between 7 and 15 years. Amortization expense for other intangible assets for the years ended December 31, 2017 , 2016 and 2015 was $21.2 , $21.9 and $26.1 , respectively. There were no material impairment charges on other intangibles for the years ended December 31, 2017 , 2016 and 2015 . During 2017 and 2016 , we recorded approximately $7.0 and $29.0 of intangible assets related to our acquisitions in the respective year. The following table provides a summary of other intangible assets, which are included in other assets on our Consolidated Balance Sheets. December 31, 2017 2016 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Customer lists $ 267.3 $ (172.2 ) $ 95.1 $ 252.4 $ (151.4 ) $ 101.0 Trade names 68.8 (33.8 ) 35.0 65.5 (28.9 ) 36.6 Other 14.4 (3.8 ) 10.6 14.3 (3.8 ) 10.5 Total $ 350.5 $ (209.8 ) $ 140.7 $ 332.2 $ (184.1 ) $ 148.1 The estimated annual amortization expense for other intangible assets for the next five years as of December 31, 2017 is listed below. 2018 2019 2020 2021 2022 Estimated amortization expense $ 23.3 $ 22.1 $ 20.4 $ 19.3 $ 16.4 |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), was enacted on December 22, 2017. The Tax Act legislated many new tax provisions which have impacted our operations, including the reduction of the U.S. federal income tax rate from 35.0% to 21.0% , effective in 2018, a current tax on the deemed repatriation of unremitted foreign earnings and a U.S tax exemption for future distributions of certain foreign earnings. U.S. GAAP requires the income tax accounting effect of a change in tax law, including the effects on current and deferred income taxes, to be reflected in the period in which such law is enacted. The SEC issued Staff Accounting Bulletin No. 118 ("SAB 118") on December 22, 2017, which acknowledges that the information necessary to determine such income tax effects may not be sufficiently available, prepared or analyzed in reasonable detail to complete the accounting under U.S. GAAP. SAB 118 allows for the reporting of provisional amounts for those specific tax effects for which a reasonable estimate can be made, and for no amounts to be recorded where a reasonable estimate cannot be made. Any subsequent adjustments to reported amounts will be made over the measurement period, which begins in the reporting period that includes the Tax Act's enactment date and ends when an entity has obtained, prepared and analyzed the information that is needed in order to complete the accounting requirements under U.S. GAAP, not to exceed one year from the enactment date. We have reasonably estimated the tax effect of re-measuring our deferred tax balances and reserves at year end to reflect the tax effect of the reversal of such deferred tax balances in future periods during which the U.S. federal income tax rate will be 21.0% . We have recorded a decrease related to deferred tax assets and deferred tax liabilities, with a corresponding provisional net benefit to our deferred income taxes of $104.7 . The Tax Act’s various changes to the treatment of fixed assets and deferred compensation are sufficiently complex to conclude that an adjustment may be necessary. The Tax Act also imposes a tax on certain unremitted foreign earnings at various tax rates. We have reasonably estimated the tax effect of this deemed repatriation of unremitted foreign earnings and have recorded tax expense of $62.3 as a provisional amount due to the fact that necessary information could not be attained, prepared or analyzed on a timely basis to be able to complete the calculations. The complexity of the rules and the comprehensive data requirements will likely result in some adjustment to the provisional amount. The Company expects to pay this amount over the next eight years, as allowed by the Tax Act. Additionally, the Tax Act imposes a new tax on certain foreign earnings generated in 2018 and forward. We are continuing to evaluate these global intangible low-taxed income ("GILTI") tax rules, which are extremely complex. U.S. GAAP allows us to choose between an accounting policy which treats the U.S. tax under GILTI provisions as either a current expense, as incurred, or as a component of the Company’s measurement of deferred taxes. We are not able to reasonably estimate the effect of the GILTI rules due to the significant complexity of the rules and the fact that the information necessary could not be attained, prepared or analyzed on a timely basis. Therefore, we have not made any adjustment related to the potential GILTI tax and have not made a policy decision regarding whether to record deferred taxes thereon. Finally, as per interpretive guidance issued by the U.S. Treasury on February 13, 2018, a tax benefit of $31.2 , which was recorded during the third quarter of 2017, was reversed during the fourth quarter of 2017 due to the enactment of the Tax Act. The components of income before income taxes are listed below. Years ended December 31, 2017 2016 2015 Domestic $ 528.2 $ 504.7 $ 461.0 Foreign 347.8 325.5 301.2 Total $ 876.0 $ 830.2 $ 762.2 The provision for income taxes is listed below. Years ended December 31, 2017 2016 2015 U.S. federal income taxes (including foreign withholding taxes): Current $ 154.1 $ 54.3 $ 117.8 Deferred (32.2 ) 36.6 46.9 121.9 90.9 164.7 State and local income taxes: Current 18.8 8.2 15.1 Deferred 20.4 (1.5 ) 13.0 39.2 6.7 28.1 Foreign income taxes: Current 107.9 89.8 100.4 Deferred 12.9 10.6 (10.4 ) 120.8 100.4 90.0 Total $ 281.9 $ 198.0 $ 282.8 A reconciliation of the effective income tax rate as reflected in our Consolidated Statements of Operations to the U.S. federal statutory income tax rate is listed below. Years ended December 31, 2017 2016 2015 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Income tax provision at U.S. federal statutory rate $ 306.6 $ 290.6 $ 266.8 State and local income taxes, net of U.S. federal income tax benefit 23.5 4.3 18.3 Impact of foreign operations, including withholding taxes (6.7 ) (23.9 ) 14.7 Change in net valuation allowance 1 1.4 (13.4 ) (20.6 ) Divestitures 1.1 9.7 11.9 U.S. federal tax credits (1.7 ) (44.6 ) 0.0 Stock compensation (15.3 ) (9.0 ) 0.0 Increase/(decrease) in unrecognized tax benefits 7.0 (22.2 ) (6.5 ) Net impact of the Tax Act (36.0 ) 0.0 0.0 Statutory tax rate changes 0.0 11.4 1.4 Other 2.0 (4.9 ) (3.2 ) Provision for income taxes $ 281.9 $ 198.0 $ 282.8 Effective income tax rate on operations 32.2 % 23.8 % 37.1 % 1 Reflects changes in valuation allowances that impacted the effective income tax rate for each year presented. In 2017 , our effective income tax rate of 32.2% was positively impacted by a net benefit of $36.0 as a result of the Tax Act, the primary impacts of which are discussed above, and excess tax benefits on employee share-based payments, partially offset by losses in certain foreign jurisdictions where we receive no tax benefit due to 100% valuation allowances. In 2016 , our effective income tax rate of 23.8% was positively impacted by a benefit of $44.6 related to refunds to be claimed on future amended U.S. federal returns for tax years 2014 and 2015 primarily related to foreign tax credits and, to a lesser extent, research and development credits based on the conclusion of multi-year studies; the settlement of 2011 and 2012 income tax audits, which included the recognition of certain previously unrecognized tax benefits of $23.4 ; the reversal of valuation allowances of $12.2 as a consequence of the disposition of certain businesses in Continental Europe; excess tax benefits on employee share-based payments; and various changes in state income tax laws as well as the recognition of previously unrecognized state tax benefits as a result of a lapse in statute of limitations. The positive impacts to our tax rates were partially offset by a revaluation of deferred tax assets as a result of a statutory tax rate change in Continental Europe, losses in certain foreign jurisdictions where we receive no tax benefit due to 100% valuation allowances and by losses on sales of businesses for which we did not receive a full tax benefit. In 2015 , our effective income tax rate of 37.1% was negatively impacted primarily by losses in certain foreign jurisdictions where we receive no tax benefit due to 100% valuation allowances and from the losses on sales of businesses for which we did not receive a full tax benefit. The negative impacts to our tax rates were partially offset by the recognition of previously unrecognized tax benefits as a result of the reversal of valuation allowances in Continental Europe and the settlement of a 2010 income tax audit. The components of deferred tax assets and liabilities are listed below. December 31, 2017 2016 Postretirement/post-employment benefits $ 19.5 $ 23.1 Deferred compensation 91.7 192.4 Pension costs 27.6 36.6 Basis differences in fixed assets (52.0 ) (80.2 ) Rent 27.5 41.7 Interest 45.8 58.9 Accruals and reserves 18.4 17.2 Allowance for doubtful accounts 10.2 13.3 Basis differences in intangible assets (281.3 ) (405.0 ) Investments in equity securities (3.3 ) (6.3 ) Tax loss/tax credit carry forwards 357.9 354.6 Prepaid expenses (1.7 ) (2.9 ) Deferred revenue (38.2 ) (32.0 ) Other 44.7 44.3 Total deferred tax assets, net 266.8 255.7 Valuation allowance (243.3 ) (255.6 ) Net deferred tax assets $ 23.5 $ 0.1 As a result of the Tax Act, we have re-measured our deferred tax assets and liabilities to reflect the tax effect of the reversal of such balances in future periods during which the U.S. federal income tax rate will be 21.0% , resulting in a provisional net benefit to our deferred income taxes of $104.7 . However, the Tax Act’s various changes to the treatment of fixed assets and deferred compensation are sufficiently complex to conclude that an adjustment may be necessary. We evaluate the realizability of our deferred tax assets on a quarterly basis. The realization of our deferred tax assets is primarily dependent on future earnings. The amount of the deferred tax assets considered realizable could be reduced or increased in the near future if estimates of future taxable income are lower or greater than anticipated. A valuation allowance is established when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. In circumstances where there is negative evidence, establishment of a valuation allowance is considered. The factors used in assessing valuation allowances include all available evidence, such as past operating results, estimates of future taxable income and the feasibility of tax planning strategies. We believe that cumulative losses in the most recent three-year period represent significant negative evidence, and as a result, we determined that certain of our deferred tax assets required the establishment of a valuation allowance. The deferred tax assets for which an allowance was recognized relate primarily to state and foreign tax loss carryforwards. The change in the valuation allowance is listed below. Years ended December 31, 2017 2016 2015 Balance at beginning of period $ 255.6 $ 275.1 $ 332.2 Reversed to costs and expenses (4.6 ) (15.4 ) (20.8 ) (Reversed) charged to gross tax assets and other accounts 1 (27.0 ) 9.5 (9.2 ) Foreign currency translation 19.3 (13.6 ) (27.1 ) Balance at end of period $ 243.3 $ 255.6 $ 275.1 1 Primarily represents changes to the valuation allowance related to the change of a corresponding deferred tax asset. In 2017, 2016, and 2015, amounts reversed to costs and expenses primarily related to decreases in valuation allowances in Continental Europe for existing deferred tax assets. As of December 31, 2017 , there were $1,186.8 of loss carryforwards. These loss carryforwards were all non-U.S. tax loss carryforwards, of which $656.6 have unlimited carryforward periods and $530.2 have expiration periods from 2018 to 2037 . As of December 31, 2017 , the Company also had $45.0 in deferred tax assets for state net operating loss carryforwards and tax credit carryforwards, which will expire between 2018 and 2037 . As of December 31, 2017 and 2016 , we had $2,774.8 and $2,622.4 , respectively, of undistributed earnings attributable to foreign subsidiaries. The Company has historically asserted that its unremitted foreign earnings are permanently reinvested, and therefore, has not recorded deferred taxes on such amounts. The Tax Act provides a U.S. tax exemption for dividends of certain foreign earnings. The Tax Act may provide additional flexibility in the Company’s tax-efficient access to global cash, but is expected to have limited impact to net domestic liquidity. The Company is still evaluating whether to continue its indefinite reinvestment assertion, in light of the Tax Act. Any change to the assertion will be accounted for as part of the change in tax law, as permitted by SAB 118. The table below summarizes the activity related to our unrecognized tax benefits. Years ended December 31, 2017 2016 2015 Balance at beginning of period $ 246.7 $ 226.9 $ 238.0 Increases as a result of tax positions taken during a prior year 6.3 65.0 5.2 Decreases as a result of tax positions taken during a prior year (8.1 ) (47.5 ) (19.7 ) Settlements with taxing authorities (0.8 ) (4.6 ) (4.1 ) Lapse of statutes of limitation (3.3 ) (11.8 ) (3.8 ) Increases as a result of tax positions taken during the current year 31.1 18.7 11.3 Balance at end of period $ 271.9 $ 246.7 $ 226.9 Included in the total amount of unrecognized tax benefits of $271.9 as of December 31, 2017 , is $249.2 of tax benefits that, if recognized, would impact the effective income tax rate. The total amount of accrued interest and penalties as of December 31, 2017 and 2016 is $27.9 and $20.9 , respectively, of which a detriment of $7.0 and $0.7 is included in our 2017 and 2016 Consolidated Statements of Operations, respectively. In accordance with our accounting policy, interest and penalties accrued on unrecognized tax benefits are classified as income taxes in our Consolidated Statements of Operations. We have various tax years under examination by tax authorities in the U.S., in various countries, and in various states, such as New York, in which we have significant business operations. It is not yet known whether these examinations will, in the aggregate, result in our paying additional taxes. We believe our tax reserves are adequate in relation to the potential for additional assessments in each of the jurisdictions in which we are subject to taxation. We regularly assess the likelihood of additional tax assessments in those jurisdictions and, if necessary, adjust our reserves as additional information or events require. With respect to all tax years open to examination by U.S. federal, various state and local, and non-U.S. tax authorities, we currently anticipate that total unrecognized tax benefits will decrease by an amount between $28.0 and $38.0 in the next twelve months, a portion of which will affect our effective income tax rate, primarily as a result of the settlement of tax examinations and the lapsing of statutes of limitations. This net decrease is related to various items of income and expense, primarily transfer pricing adjustments. We are effectively settled with respect to U.S. federal income tax audits through 2012, with the exception of 2009. With limited exceptions, we are no longer subject to state and local income tax audits for years prior to 2007 or non-U.S. income tax audits for years prior to 2006. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Net of Tax (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Comprehensive Income (Loss) Note | Accumulated Other Comprehensive Loss, Net of Tax The following table presents the changes in accumulated other comprehensive loss, net of tax, by component. Foreign Currency Translation Adjustments Available-for-Sale Securities Derivative Instruments Defined Benefit Pension and Other Postretirement Plans Total Balance as of December 31, 2015 $ (665.6 ) $ 1.3 $ (9.6 ) $ (171.7 ) $ (845.6 ) Other comprehensive (loss) income before reclassifications (54.8 ) 0.5 0.0 (70.7 ) (125.0 ) Amount reclassified from accumulated other comprehensive loss, net of tax 3.7 (1.2 ) 1.2 4.4 8.1 Balance as of December 31, 2016 $ (716.7 ) $ 0.6 $ (8.4 ) $ (238.0 ) $ (962.5 ) Other comprehensive income (loss) before reclassifications 130.7 0.0 0.0 (9.7 ) 121.0 Amount reclassified from accumulated other comprehensive loss, net of tax 1.1 (0.6 ) 1.6 12.0 14.1 Balance as of December 31, 2017 $ (584.9 ) $ 0.0 $ (6.8 ) $ (235.7 ) $ (827.4 ) Amounts reclassified from accumulated other comprehensive loss, net of tax, for the years ended December 31, 2017 , 2016 and 2015 are as follows: Years ended December 31, Affected Line Item in the Consolidated Statements of Operations 2017 2016 2015 Foreign currency translation adjustments 1 $ 1.1 $ 3.7 $ 23.3 Other expense, net Gains on available-for-sale securities (0.7 ) (1.3 ) 0.0 Other expense, net Losses on derivative instruments 2.1 2.0 2.0 Interest expense Amortization of defined benefit pension and postretirement plans items 13.7 5.8 10.4 Other expense, net Tax effect (2.1 ) (2.1 ) (4.2 ) Provision for income taxes Total amount reclassified from accumulated other comprehensive loss, net of tax $ 14.1 $ 8.1 $ 31.5 1 These foreign currency translation adjustments are primarily a result of the sales of businesses. |
Incentive Compensation Plans (N
Incentive Compensation Plans (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |
Incentive Compensation Plans | Incentive Compensation Plans 2014 Performance Incentive Plan We issue stock-based compensation and cash awards to our employees under a plan established by the Compensation and Leadership Talent Committee of the Board of Directors (the “Compensation Committee”) and approved by our shareholders. In May 2014, our shareholders approved the 2014 Performance Incentive Plan (the “ 2014 PIP”), replacing previous incentive plans. The number of shares of common stock initially available for grants of all equity awards under the 2014 PIP is 28.8 . Pursuant to the terms of the 2014 PIP, the number of shares that may be awarded to any one participant for each type of award is limited to 2.0 . The vesting period of awards granted is generally commensurate with the requisite service period. We generally issue new shares to satisfy the exercise of stock options or the distribution of other stock-based awards. Additionally, under the 2014 PIP, we have the ability to issue performance cash awards. Performance cash awards are granted to certain employees who otherwise would have been eligible to receive performance-based stock awards. These awards have a service period vesting condition and a performance vesting condition. The amount of the performance cash award received by an employee with a performance vesting condition can range from 0% to 300% of the target amount of the original grant value, except for Executive Officers of IPG, with a range of 0% to 200%. Performance cash awards generally vest in three years. The Compensation Committee may grant performance cash awards to any eligible employee; however, no employee can receive more than $10.0 during a performance period. The amounts of stock-based compensation expense as reflected in salaries and related expenses in our Consolidated Statements of Operations, and the related tax benefit, are listed below. Years ended December 31, 2017 2016 2015 Stock options $ 0.0 $ 0.2 $ 1.0 Stock-settled awards 20.5 16.0 11.6 Cash-settled awards 1.0 0.9 0.7 Performance-based awards 61.5 69.4 57.7 Employee stock purchase plan 1.0 0.7 0.7 Other 1 0.5 0.8 0.9 Stock-based compensation expense $ 84.5 $ 88.0 $ 72.6 Tax benefit $ 30.4 $ 32.1 $ 26.3 1 Represents charges recorded for severance expense related to stock-based compensation awards. Stock Options Stock options are granted with the exercise price equal to the fair market value of our common stock on the grant date. We use the Black-Scholes option-pricing model to estimate the fair value of options granted, which requires the input of subjective assumptions including the option’s expected term and the price volatility of the underlying stock. They are generally first exercisable between two and four years from the grant date and expire ten years from the grant date (or earlier in the case of certain terminations of employment). There were no stock options granted during the years ended December 31, 2017 , 2016 and 2015 . As of December 31, 2017 , all stock options granted were fully vested and exercisable. The following table summarizes our stock option activity during 2017 . Options Weighted- Average Exercise Price (per option) Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Stock options outstanding as of January 1, 2017 4.8 $ 9.83 Exercised (1.1 ) 11.15 Stock options outstanding as of December 31, 2017 3.7 $ 9.44 2.6 $ 39.2 There were 1.1 , 1.2 and 1.4 stock options exercised in 2017 , 2016 and 2015 , respectively. The total intrinsic value of stock options exercised during 2017 , 2016 and 2015 was $15.1 , $15.2 and $16.1 , respectively. The cash received from the stock options exercised in 2017 , 2016 and 2015 was $20.0 , $18.2 and $20.4 , respectively. Stock-Based Compensation We grant other stock-based compensation awards such as stock-settled awards, cash-settled awards and performance-based awards (settled in cash or shares) to certain key employees. The number of shares or units received by an employee for performance-based awards depends on Company performance against specific performance targets and could range from 0% to 300% of the target amount of shares originally granted, except for Executive Officers of IPG, with a range of 0% to 200%. Incentive awards are subject to certain restrictions and vesting requirements as determined by the Compensation Committee. The fair value of the shares on the grant date is amortized over the vesting period, which is generally three years . Upon completion of the vesting period for cash-settled awards, the grantee is entitled to receive a payment in cash based on the fair market value of the corresponding number of shares of common stock. No monetary consideration is paid by a recipient for any incentive award. The fair value of cash-settled awards is adjusted each quarter based on our share price. The holders of stock-settled awards have absolute ownership interest in the underlying shares of common stock prior to vesting, which includes the right to vote and receive dividends. Dividends declared on common stock are accrued during the vesting period and paid when the award vests. The holders of performance-based awards have no ownership interest in the underlying shares of common stock until the awards vest and the shares of common stock are issued. Stock-based compensation awards expected to be settled in cash have been classified as liabilities in our Consolidated Balance Sheets as of December 31, 2017 and 2016 . Years ended December 31, 2017 2016 2015 Stock-Settled Awards: Awards granted 0.8 1.1 0.8 Weighted-average grant-date fair value (per award) $ 24.18 $ 21.87 $ 22.07 Total fair value of vested awards distributed $ 22.6 $ 17.5 $ 18.8 Cash-Settled Awards: Awards granted 0.0 0.1 0.1 Weighted-average grant-date fair value (per award) $ 23.33 $ 22.54 $ 20.46 Total fair value of vested awards distributed $ 0.9 $ 0.7 $ 0.2 Performance-Based Awards: Awards granted 4.8 3.3 2.9 Weighted-average grant-date fair value (per award) $ 20.06 $ 19.58 $ 20.88 Total fair value of vested awards distributed $ 112.4 $ 27.9 $ 18.7 In conjunction with common stock dividends declared in 2017 and 2016 , we accrued dividends of $1.5 and $1.3 , respectively, on non-vested stock-settled awards and paid dividends of $1.2 and $0.6 for stock-settled awards that vested during 2017 and 2016 , respectively. A summary of the activity of our non-vested stock-settled awards, cash-settled awards and performance-based awards during 2017 is presented below (performance-based awards are shown at 100% of the shares originally granted). Stock-Settled Awards Cash-Settled Awards Performance-Based Awards Awards Weighted- Average Grant-Date Fair Value (per award) Awards Weighted- Average Grant-Date Fair Value (per award) Awards Weighted- Average Grant-Date Fair Value (per award) Non-vested as of January 1, 2017 2.3 $ 20.84 0.1 $ 20.49 8.5 $ 19.16 Granted 0.8 24.18 0.0 23.33 4.8 20.06 Vested (1.0 ) 19.49 0.0 19.27 (4.6 ) 16.64 Forfeited 0.0 21.86 0.0 20.50 (0.4 ) 20.00 Non-vested as of December 31, 2017 2.1 $ 22.78 0.1 $ 22.52 8.3 $ 21.05 Total unrecognized compensation expense remaining $ 24.1 $ 1.0 $ 71.9 Weighted-average years expected to be recognized over 1.0 1.0 1.7 In conjunction with our annual grant of long-term incentive compensation awards, we reviewed our estimates and assumptions in 2017 , which resulted in a forfeiture rate consistent with prior years. 2009 Restricted Cash Plan In March 2009 , the Compensation Committee approved the Interpublic Restricted Cash Plan (the “Cash Plan”). Under the Cash Plan, the Board, the Compensation Committee or the Plan Administrator may grant cash awards to certain employees eligible to receive stock-settled and cash-settled awards. Cash awards, when granted, have a service-period vesting condition and generally vest in three years . Cash Awards During the years ended December 31, 2017 , 2016 and 2015 , the Compensation Committee granted cash awards under the Cash Plan with a total target value of $2.8 , $5.2 and $1.3 , respectively. For those same years, we recognized $2.5 , $3.1 and $3.0 , respectively, in salaries and related expenses in our Consolidated Statements of Operations. During the years ended December 31, 2017 , 2016 and 2015 , the Compensation Committee granted performance awards to be settled in cash under the 2014 PIP with a total target value of $38.4 , $37.4 , and $31.8 , respectively. For those same years, we recognized $35.3 , $39.8 and $35.8 , respectively, in salaries and related expenses in our Consolidated Statements of Operations. We amortize the present value of the amount expected to vest for cash awards and performance cash awards over the vesting period using the straight-line method, less an assumed forfeiture rate. Cash awards do not fall within the scope of the authoritative guidance for stock compensation as they are not paid in equity and the value of the award is not correlated with our stock price. Due to the cash nature of the payouts and the vesting period, we account for these awards in accordance with authoritative guidance for deferred compensation arrangements. Employee Stock Purchase Plans In May 2016, our shareholders approved The Interpublic Group of Companies Employee Stock Purchase Plan (2016) (the “ESPP”), replacing the prior employee stock purchase plan under which, prior to its expiration on December 31, 2015, 3.0 shares were issued. Under the ESPP, eligible employees may purchase our common stock through payroll deductions not exceeding 10% of their eligible compensation or 900 (actual number) shares each offering period, consistent with the prior employee stock purchase plan. The price an employee pays for a share of common stock under the ESPP is 90% of the lesser of the average market price of a share on the first business day of the offering period or the average market price of a share on the last business day of the offering period of three months . An aggregate of 10.0 shares are reserved for issuance under the ESPP, of which 0.5 shares have been issued through December 31, 2017 . |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Measurements Authoritative guidance for fair value measurements establishes a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial Instruments that are Measured at Fair Value on a Recurring Basis We primarily apply the market approach to determine the fair value of financial instruments that are measured at fair value on a recurring basis. There were no changes to our valuation techniques used to determine the fair value of financial instruments during 2017 as compared to the prior year. The following tables present information about our financial instruments measured at fair value on a recurring basis as of December 31, 2017 and 2016 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. December 31, 2017 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 201.6 $ 0.0 $ 0.0 $ 201.6 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 147.0 $ 147.0 December 31, 2016 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 440.8 $ 0.0 $ 0.0 $ 440.8 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 205.4 $ 205.4 1 Contingent acquisition obligations includes deferred acquisition payments and unconditional obligations to purchase additional noncontrolling equity shares of consolidated subsidiaries. Fair value measurement of the obligations is based upon actual and projected operating performance targets as specified in the related agreements. The decrease in this balance of $58.4 from December 31, 2016 to December 31, 2017 is primarily due to payments of $105.3 , partially offset by acquisitions and exercised put options of $40.8 . The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. Financial Instruments that are not Measured at Fair Value on a Recurring Basis The following table presents information about our financial instruments that are not measured at fair value on a recurring basis as of December 31, 2017 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. December 31, 2017 Level 1 Level 2 Level 3 Total Total long-term debt $ 0.0 $ 1,296.4 $ 46.2 $ 1,342.6 Our long-term debt is comprised of senior notes and other notes payable. The fair value of our senior notes, which are traded over-the-counter, is based on quoted prices in markets that are not active. Therefore, these senior notes are classified as Level 2 within the fair value hierarchy. Our other notes payable are not actively traded, and their fair value is not solely derived from readily observable inputs. The fair value of our other notes payable is determined based on a discounted cash flow model and other proprietary valuation methods, and therefore is classified as Level 3 within the fair value hierarchy. See Note 2 for further information on our long-term debt. Non-financial Instruments that are Measured at Fair Value on a Nonrecurring Basis Certain non-financial instruments are measured at fair value on a nonrecurring basis, primarily goodwill, intangible assets, and property and equipment. Accordingly, these assets are not measured and adjusted to fair value on an ongoing basis but are subject to periodic evaluations for potential impairment. |
Employee Benefits (Notes)
Employee Benefits (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Pension and Postretirement Benefit Plans We have a defined benefit pension plan covering certain U.S. employees (the “Domestic Pension Plan”) that consists of approximately 3,500 participants and is closed to new participants. We also have numerous funded and unfunded plans outside the U.S. The Interpublic Limited Pension Plan in the U.K. (the "U.K. Pension Plan") is a defined benefit plan and is our most material foreign pension plan in terms of the benefit obligation and plan assets. The domestic postretirement benefit plan is our most material postretirement benefit plan in terms of the benefit obligation. This plan consists of approximately 1,700 participants, is closed to new participants and is unfunded. Differences between the aggregate income statement and balance sheet amounts listed in the tables below and the totals reported in our Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income and Consolidated Balance Sheets relate to non-material foreign pension and postretirement benefit plans. From time to time, we evaluate the foreign plans to be included in the below disclosure based upon significance to our overall operations. Our evaluation consists of reviewing the Projected Benefit Obligation, Plan Assets and Funded Status of our plans to determine significance. As of December 31, 2017 , the Funded Status of foreign plans that are not included in the below disclosure was in a deficit position of $56.2 . The plans excluded from the below disclosure are comprised of numerous individually insignificant pension, postretirement and executive retirement plans, many of which are not required to be funded, in various foreign jurisdictions in which we operate. The effect of the change in scoping is noted within the Other caption within the tables below. Pension and Postretirement Benefit Obligation The change in the benefit obligation, the change in plan assets, the funded status and amounts recognized for the Domestic Pension Plan, the significant foreign pension plans and the domestic postretirement benefit plan are listed below. Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Years ended December 31, 2017 2016 2017 2016 2017 2016 Benefit Obligation Projected benefit obligation as of January 1 $ 126.6 $ 126.9 $ 530.6 $ 537.9 $ 32.3 $ 33.9 Service cost 0.0 0.0 4.9 6.7 0.0 0.0 Interest cost 5.1 5.9 13.5 15.1 1.3 1.5 Benefits paid (11.4 ) (13.6 ) (19.0 ) (25.7 ) (5.9 ) (5.8 ) Plan participant contributions 0.0 0.0 0.2 0.2 1.6 1.6 Actuarial losses 5.1 7.4 20.3 115.6 2.5 1.1 Settlements and curtailments 0.0 0.0 (19.8 ) (6.3 ) 0.0 0.0 Foreign currency effect 0.0 0.0 50.4 (84.2 ) 0.0 0.0 Other 0.0 0.0 1.2 (28.7 ) 0.0 0.0 Projected benefit obligation as of December 31 $ 125.4 $ 126.6 $ 582.3 $ 530.6 $ 31.8 $ 32.3 Fair Value of Plan Assets Fair value of plan assets as of January 1 $ 95.2 $ 101.1 $ 365.9 $ 399.6 $ 0.0 $ 0.0 Actual return on plan assets 12.4 7.7 25.1 47.9 0.0 0.0 Employer contributions 2.6 0.0 17.5 23.2 4.3 4.2 Plan participant contributions 0.0 0.0 0.2 0.2 1.6 1.6 Benefits paid (11.4 ) (13.6 ) (19.0 ) (25.7 ) (5.9 ) (5.8 ) Settlements 0.0 0.0 (19.1 ) (2.2 ) 0.0 0.0 Foreign currency effect 0.0 0.0 33.2 (68.6 ) 0.0 0.0 Other 0.0 0.0 0.4 (8.5 ) 0.0 0.0 0.0 Fair value of plan assets as of December 31 $ 98.8 $ 95.2 $ 404.2 $ 365.9 $ 0.0 $ 0.0 Funded status of the plans at December 31 $ (26.6 ) $ (31.4 ) $ (178.1 ) $ (164.7 ) $ (31.8 ) $ (32.3 ) Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan December 31, 2017 2016 2017 2016 2017 2016 Amounts recognized in Consolidated Balance Sheets Non-current asset $ 0.0 $ 0.0 $ 9.0 $ 7.6 $ 0.0 $ 0.0 Current liability 0.0 0.0 (6.5 ) (5.5 ) (3.1 ) (3.2 ) Non-current liability (26.6 ) (31.4 ) (180.6 ) (166.8 ) (28.7 ) (29.1 ) Net liability recognized $ (26.6 ) $ (31.4 ) $ (178.1 ) $ (164.7 ) $ (31.8 ) $ (32.3 ) Accumulated benefit obligation $ 125.4 $ 126.6 $ 577.9 $ 526.2 Amounts recognized in Accumulated Other Comprehensive Loss, net Net actuarial loss $ 52.2 $ 54.9 $ 201.6 $ 183.4 $ 4.2 $ 1.7 Prior service cost (credit) 0.0 0.0 1.1 0.9 (0.4 ) (0.6 ) Total amount recognized $ 52.2 $ 54.9 $ 202.7 $ 184.3 $ 3.8 $ 1.1 In 2018 , we estimate that we will recognize $1.5 and $6.0 of net actuarial losses from accumulated other comprehensive loss, net into net periodic cost related to our domestic pension plan and significant foreign pension plans, respectively. Domestic Pension Plan Foreign Pension Plans December 31, 2017 2016 2017 2016 Pension plans with underfunded or unfunded accumulated benefit obligation Aggregate projected benefit obligation $ 125.4 $ 126.6 $ 576.6 $ 525.3 Aggregate accumulated benefit obligation 125.4 126.6 575.2 523.8 Aggregate fair value of plan assets 98.8 95.2 389.5 352.9 Net Periodic Cost The components of net periodic benefit cost and key assumptions are listed below. Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Years ended December 31, 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ 0.0 $ 0.0 $ 0.0 $ 4.9 $ 6.7 $ 11.1 $ 0.0 $ 0.0 $ 0.0 Interest cost 5.1 5.9 0.3 13.5 15.1 18.9 1.3 1.5 1.5 Expected return on plan assets (6.2 ) (6.6 ) (7.6 ) (17.7 ) (18.7 ) (20.6 ) 0.0 0.0 0.0 Settlement and curtailment losses (gains) 0.0 0.0 0.0 6.8 0.4 (0.2 ) 0.0 0.0 0.0 Amortization of: Prior service cost (credit) 0.0 0.0 0.0 0.1 0.1 0.1 (0.2 ) (0.2 ) (0.1 ) Net actuarial losses 1.5 1.3 6.5 5.5 4.2 4.1 0.0 0.0 0.0 Net periodic cost $ 0.4 $ 0.6 $ (0.8 ) $ 13.1 $ 7.8 $ 13.4 $ 1.1 $ 1.3 $ 1.4 Assumptions Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Years ended December 31, 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net periodic cost Discount rate 4.20 % 4.80 % 4.15 % 2.52 % 3.61 % 3.41 % 4.05 % 4.65 % 4.00 % Rate of compensation increase N/A N/A N/A 2.36 % 3.18 % 2.99 % N/A N/A N/A Expected return on plan assets 7.00 % 7.00 % 7.00 % 4.66 % 5.38 % 5.01 % N/A N/A N/A Benefit obligation Discount rate 3.70 % 4.20 % 4.80 % 2.36 % 2.52 % 3.61 % 3.65 % 4.05 % 4.65 % Rate of compensation increase N/A N/A N/A 2.37 % 2.36 % 3.25 % N/A N/A N/A Health care cost trend rate assumed for next year Initial rate (weighted-average) 6.50 % 6.75 % 7.00 % Year ultimate rate is reached 2024 2024 2024 Ultimate rate 5.00 % 5.00 % 5.00 % Discount Rates – At December 31, 2017 , 2016 and 2015 , we determined our discount rates for our Domestic Pension Plan, foreign pension plans and domestic postretirement benefit plan based on either a bond selection/settlement approach or bond yield curve approach. Using the bond selection/settlement approach, we determine the discount rate by selecting a portfolio of corporate bonds appropriate to provide for the projected benefit payments. Using the bond yield curve approach, we determine the discount rate by matching the plans' cash flows to spot rates developed from a yield curve. Both approaches utilize high-quality AA-rated corporate bonds and the plans' projected cash flows to develop a discounted value of the benefit payments, which is then used to develop a single discount rate. In countries where markets for high-quality long-term AA corporate bonds are not well developed, a portfolio of long-term government bonds is used as a basis to develop hypothetical corporate bond yields, which serve as a basis to derive the discount rate. Expected Return on Assets – Our expected rate of return is determined at the beginning of each year and considers asset class index returns over various market and economic conditions, current and expected market conditions, risk premiums associated with asset classes and long-term inflation rates. We determine both a short-term and long-term view and then select a long-term rate of return assumption that matches the duration of our liabilities. Fair Value of Pension Plan Assets The following table presents the fair value of our domestic and foreign pension plan assets as of December 31, 2017 and 2016 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. See Note 10 for a description of the fair value hierarchy. December 31, 2017 December 31, 2016 Plan assets subject to fair value hierarchy Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Registered investment companies $ 14.7 $ 0.0 $ 0.0 $ 14.7 $ 14.4 $ 0.0 $ 0.0 $ 14.4 Limited partnerships 0.0 0.0 29.5 29.5 0.0 0.0 28.0 28.0 Fixed income securities 23.4 0.0 0.0 23.4 22.6 0.3 0.0 22.9 Insurance contracts 0.0 7.9 0.0 7.9 0.0 7.8 0.0 7.8 Other 27.7 0.0 0.0 27.7 20.1 0.0 0.0 20.1 Total plan assets, subject to leveling $ 65.8 $ 7.9 $ 29.5 $ 103.2 $ 57.1 $ 8.1 $ 28.0 $ 93.2 Plan assets measured at net asset value Other investments measured at net asset value 1 399.8 367.9 Total plan assets $ 503.0 $ 461.1 1 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy but are included to reconcile to the amounts presented in the fair value of plan assets table above. Registered investment companies, which are publicly traded, are primarily valued using recently reported sales prices. Limited partnerships are invested primarily in equity and fixed income securities. Fixed income securities include government and investment-grade corporate bonds. Insurance contracts are valued based on the cash surrender value of the contract. Other investments primarily include cash and cash equivalents, equity securities and derivatives. Other investments measured at net asset value include common/collective trusts, hedge funds and other commingled assets that are invested primarily in equity and fixed income securities. These investments are not publicly traded and are valued based on the net asset value of shares held by the plan at year end, which reflects the fair value of the underlying investments. The following table presents additional information about our significant foreign pension plan assets for which we utilize Level 3 inputs to determine fair value. Years ended December 31, Plan assets subject to fair value hierarchy, level 3 2017 2016 Balance at beginning of period $ 28.0 $ 31.0 Actual return on plan assets 1.5 (3.0 ) Balance at end of period $ 29.5 $ 28.0 Asset Allocation The primary investment goal for our plans’ assets is to maximize total asset returns while ensuring the plans’ assets are available to fund the plans’ liabilities as they become due. The plans’ assets in aggregate and at the individual portfolio level are invested so that total portfolio risk exposure and risk-adjusted returns best achieve this objective. The aggregate amount of our own stock held as investment for our domestic and foreign pension funds is considered negligible relative to the total fund assets. As of December 31, 2017 , the weighted-average target and actual asset allocations relating to our domestic and foreign pension plans' assets are listed below. December 31, Asset Class 2018 Target Allocation 2017 2016 Alternative investments 1 27 % 27 % 21 % Equity securities 23 % 23 % 23 % Fixed income securities 21 % 21 % 26 % Liability driven investments 2 14 % 14 % 14 % Real estate 6 % 6 % 6 % Other 9 % 9 % 10 % Total 100 % 100 % 100 % 1 Alternative investments have the flexibility to dynamically invest across a broad range of asset classes including bonds, equity, cash, property and commodities. 2 Liability driven investment strategies use government bonds as well as derivative instruments to hedge a portion of the impact of interest rates and inflation movements on the long-term liabilities. Cash Flows During 2017 , we contributed $2.6 and $17.5 of cash to our domestic and foreign pension plans, respectively. For 2018 , we expect to contribute approximately $10.0 and $18.0 of cash to our domestic and foreign pension plans, respectively. The estimated future benefit payments expected to be paid are presented below. Years Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan 2018 $ 13.7 $ 22.3 $ 3.2 2019 8.5 23.8 3.0 2020 8.6 21.6 2.8 2021 8.0 22.3 2.6 2022 8.4 23.5 2.4 2023 - 2027 37.2 124.0 10.4 The estimated future payments for our domestic postretirement benefit plan are net of any estimated U.S. federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, which total no more than $0.3 in any individual year. Savings Plans We sponsor defined contribution plans (the “Savings Plans”) that cover substantially all domestic employees. The Savings Plans permit participants to make contributions on a pre-tax and/or after-tax basis and allow participants to choose among various investment alternatives. We match a portion of participant contributions based upon their years of service. Amounts expensed for the Savings Plans for 2017 , 2016 and 2015 were $47.2 , $47.0 and $44.5 , respectively. Expenses include a discretionary Company contribution of $3.6 , $6.1 and $5.8 offset by participant forfeitures of $4.6 , $4.4 and $3.8 in 2017 , 2016 and 2015 , respectively. In addition, we maintain defined contribution plans in various foreign countries and contributed $47.4 , $44.5 and $43.9 to these plans in 2017 , 2016 and 2015 , respectively. Deferred Compensation and Benefit Arrangements We have deferred compensation arrangements which (i) permit certain of our key officers and employees to defer a portion of their salary or incentive compensation or (ii) require us to contribute an amount to the participant’s account. The arrangements typically provide that the participant will receive the amounts deferred plus interest upon attaining certain conditions, such as completing a certain number of years of service or upon retirement or termination. As of December 31, 2017 and 2016 , the deferred compensation liability balance was $96.2 and $92.4 , respectively. Amounts expensed for deferred compensation arrangements in 2017 , 2016 and 2015 were $11.2 , $9.7 and $6.3 , respectively. We have deferred benefit arrangements with certain key officers and employees that provide participants with an annual payment, payable when the participant attains a certain age and after the participant’s employment has terminated. The deferred benefit liability was $117.0 and $129.1 as of December 31, 2017 and 2016 , respectively. Amounts expensed for deferred benefit arrangements in 2017 , 2016 and 2015 were $7.3 , $8.8 and $9.7 , respectively. We have purchased life insurance policies on participants’ lives to assist in the funding of the related deferred compensation and deferred benefit liabilities. As of December 31, 2017 and 2016 , the cash surrender value of these policies was $177.4 and $171.5 , respectively. In addition to the life insurance policies, certain investments are held for the purpose of paying the deferred compensation and deferred benefit liabilities. These investments, along with the life insurance policies, are held in a separate revocable trust for the purpose of paying the deferred compensation and the deferred benefit arrangement liabilities. As of December 31, 2017 and 2016 , the value of such investments in the trust was $15.9 and $12.9 , respectively. The short-term investments are included in cash and cash equivalents, and the long-term investments and cash surrender value of the policies are included in other assets. Long-Term Disability Plan We have a long-term disability plan which provides income replacement benefits to eligible participants who are unable to perform their job duties or any job related to his or her education, training or experience. As all income replacement benefits are fully insured, no related obligation is required as of December 31, 2017 and 2016 . In addition to income replacement benefits, plan participants may remain covered for certain health and life insurance benefits up to normal retirement age, and accordingly, we have recorded an obligation of $8.4 and $8.2 as of December 31, 2017 and 2016 , respectively. |
Segment Information (Notes)
Segment Information (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information As of December 31, 2017 , we have two reportable segments: IAN and CMG. IAN is comprised of McCann Worldgroup, Foote, Cone & Belding ("FCB"), MullenLowe Group, IPG Mediabrands, our digital specialist agencies and our domestic integrated agencies. CMG is comprised of a number of our specialist marketing services offerings. We also report results for the "Corporate and other" group. Within IAN, our agencies provide a comprehensive array of global communications and marketing services, each offering a distinctive range of solutions for our clients. Our digital specialist agencies provide unique digital capabilities and service their own client rosters while also serving as key digital partners. In addition, our domestic integrated agencies, including Hill Holliday, Carmichael Lynch and Tierney, provide a full range of advertising, marketing communications services and/or marketing services and partner with our global operating divisions as needed. IAN’s operating divisions share similar economic characteristics and are similar in other areas, specifically related to the nature of their services, the manner in which the services are provided and the similarity of their respective customers. CMG, which includes Weber Shandwick, DeVries, Golin, FutureBrand, Jack Morton and Octagon Worldwide, provides clients with diversified services, including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. CMG shares some similarities with service lines offered by IAN; however, on an aggregate basis, CMG has a higher proportion of arrangements for which they act as principal, a different distribution model than IAN and different margin structure. The profitability measure employed by our chief operating decision maker for allocating resources to operating divisions and assessing operating division performance is operating income (loss). All segments follow the same accounting policies as those described in Note 1 . Certain corporate and other charges are reported as separate line items within total segment operating income and include corporate office expenses, shared service center expenses and certain other centrally managed expenses that are not fully allocated to operating divisions. Salaries and related expenses include salaries, long-term incentive awards, annual bonuses and other miscellaneous benefits for corporate office employees. Office and general expenses primarily include professional fees related to internal control compliance, financial statement audits and legal, information technology and other consulting services, which are engaged and managed through the corporate office. In addition, office and general expenses includes rental expense and depreciation of leasehold improvements for properties occupied by corporate office employees. A portion of centrally managed expenses are allocated to operating divisions based on a formula that uses the planned revenues of each of the operating units. Amounts allocated also include specific charges for information technology-related projects, which are allocated based on utilization. Summarized financial information concerning our reportable segments is shown in the following tables. Years ended December 31, 2017 2016 2015 Revenue: IAN $ 6,397.3 $ 6,319.4 $ 6,145.4 CMG 1,485.1 1,527.2 1,468.4 Total $ 7,882.4 $ 7,846.6 $ 7,613.8 Segment operating income (loss): IAN $ 907.4 $ 898.2 $ 850.3 CMG 192.8 190.0 166.3 Corporate and other (126.6 ) (147.2 ) (141.8 ) Total 973.6 941.0 874.8 Interest expense (90.8 ) (90.6 ) (85.8 ) Interest income 19.4 20.1 22.8 Other expense, net (26.2 ) (40.3 ) (49.6 ) Income before income taxes $ 876.0 $ 830.2 $ 762.2 Depreciation and amortization of property, equipment and intangible assets: IAN $ 111.8 $ 117.7 $ 117.5 CMG 20.4 19.5 18.4 Corporate and other 24.9 23.0 21.1 Total $ 157.1 $ 160.2 $ 157.0 Capital expenditures: IAN $ 112.0 $ 149.2 $ 117.5 CMG 17.7 16.6 12.7 Corporate and other 26.2 34.9 30.9 Total $ 155.9 $ 200.7 $ 161.1 December 31, 2017 2016 Total assets: IAN $ 10,973.0 $ 10,660.0 CMG 1,422.9 1,428.3 Corporate and other 299.3 396.9 Total $ 12,695.2 $ 12,485.2 Revenue and long-lived assets, excluding intangible assets, are presented by major geographic area in the following table. Revenue Long-Lived Assets Years ended December 31, December 31, 2017 2016 2015 2017 2016 Domestic $ 4,714.3 $ 4,684.8 $ 4,475.5 $ 705.5 $ 684.8 International: United Kingdom 681.8 695.7 687.7 56.2 52.0 Continental Europe 716.1 699.8 697.2 73.6 57.0 Asia Pacific 913.6 923.0 916.9 115.5 118.3 Latin America 355.9 372.7 383.5 48.2 49.0 Other 500.7 470.6 453.0 46.1 43.3 Total International 3,168.1 3,161.8 3,138.3 339.6 319.6 Total Consolidated $ 7,882.4 $ 7,846.6 $ 7,613.8 $ 1,045.1 $ 1,004.4 Revenue is primarily attributed to geographic areas based on where the services are performed. Property and equipment are allocated based upon physical location. Other assets and investments are allocated based on the location of the related operations. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases We lease office premises and equipment. Where leases contain escalation clauses or concessions, such as rent holidays and landlord/tenant incentives or allowances, the impact of such adjustments is recognized on a straight-line basis over the minimum lease period. Certain leases provide for renewal options and require the payment of real estate taxes or other occupancy costs, which are also subject to escalation clauses. Net rent expense is listed in the table below. Years ended December 31, 2017 2016 2015 Gross rent expense $ 371.0 $ 366.1 $ 336.5 Third-party sublease rental income (4.6 ) (4.1 ) (5.5 ) Net rent expense $ 366.4 $ 362.0 $ 331.0 Cash amounts for future minimum lease commitments for office premises and equipment under non-cancelable leases, along with minimum sublease rental income to be received under non-cancelable subleases, are listed in the table below. Period Rent Obligations Sublease Rental Income Net Rent 2018 $ 335.0 $ (4.2 ) $ 330.8 2019 312.1 (3.8 ) 308.3 2020 285.3 (2.5 ) 282.8 2021 251.4 (1.4 ) 250.0 2022 204.1 (0.8 ) 203.3 Thereafter 727.2 (0.5 ) 726.7 Total $ 2,115.1 $ (13.2 ) $ 2,101.9 Guarantees We have guaranteed certain obligations of our subsidiaries relating principally to operating leases and uncommitted lines of credit of certain subsidiaries. The amount of parent company guarantees on lease obligations was $829.2 and $857.3 as of December 31, 2017 and 2016 , respectively, and the amount of parent company guarantees primarily relating to uncommitted lines of credit was $491.0 and $395.6 as of December 31, 2017 and 2016 , respectively. In the event of non-payment by the applicable subsidiary of the obligations covered by a guarantee, we would be obligated to pay the amounts covered by that guarantee. As of December 31, 2017 , there were no material assets pledged as security for such parent company guarantees. Contingent Acquisition Obligations The following table details the estimated future contingent acquisition obligations payable in cash as of December 31, 2017 . 2018 2019 2020 2021 2022 Thereafter Total Deferred acquisition payments $ 41.9 $ 27.5 $ 16.1 $ 24.4 $ 4.8 $ 6.3 $ 121.0 Redeemable noncontrolling interests and call options with affiliates 1 37.1 26.4 62.9 10.3 6.6 4.1 147.4 Total contingent acquisition payments $ 79.0 $ 53.9 $ 79.0 $ 34.7 $ 11.4 $ 10.4 $ 268.4 1 We have entered into certain acquisitions that contain both redeemable noncontrolling interests and call options with similar terms and conditions. The estimated amounts listed would be paid in the event of exercise at the earliest exercise date. We have certain redeemable noncontrolling interests that are exercisable at the discretion of the noncontrolling equity owners as of December 31, 2017 . These estimated payments of $24.8 are included within the total payments expected to be made in 2018 , and will continue to be carried forward into 2019 or beyond until exercised or expired. Redeemable noncontrolling interests are included in the table at current exercise price payable in cash, not at applicable redemption value, in accordance with the authoritative guidance for classification and measurement of redeemable securities. The majority of these payments are contingent upon achieving projected operating performance targets and satisfying other conditions specified in the related agreements and are subject to revision in accordance with the terms of the respective agreements. See Note 4 for further information relating to the payment structure of our acquisitions. Legal Matters In the normal course of business, we are involved in various legal proceedings, and subject to investigations, inspections, audits, inquiries and similar actions by governmental authorities. The types of allegations that arise in connection with such legal proceedings vary in nature, but can include claims related to contract, employment, tax and intellectual property matters. We evaluate all cases each reporting period and record liabilities for losses from legal proceedings when we determine that it is probable that the outcome in a legal proceeding will be unfavorable and the amount, or potential range, of loss can be reasonably estimated. In certain cases, we cannot reasonably estimate the potential loss because, for example, the litigation is in its early stages. While any outcome related to litigation or such governmental proceedings in which we are involved cannot be predicted with certainty, management believes that the outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial condition, results of operations or cash flows. As previously disclosed, on April 10, 2015, a federal judge in Brazil authorized the search of the records of an agency's offices in São Paulo and Brasilia, in connection with an ongoing investigation by Brazilian authorities involving payments potentially connected to local government contracts. The Company had previously investigated the matter and taken a number of remedial and disciplinary actions. The Company is in the process of concluding a settlement related to these matters with government agencies. The Company confirmed that one of its standalone domestic agencies has been contacted by the Department of Justice Antitrust Division for documents regarding video production practices and is cooperating with the government. |
Recent Accounting Standards (No
Recent Accounting Standards (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Accounting pronouncements not listed below were assessed and determined to be not applicable or are expected to have minimal impact on our Consolidated Financial Statements. Derivatives and Hedging In August 2017, the Financial Accounting Standards Board (the "FASB") issued amended guidance on hedge accounting which expands an entity’s ability to hedge non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The new guidance also eliminates the requirement to separately measure and report hedge ineffectiveness. This amended guidance is effective beginning January 1, 2019, with early adoption permitted. We are currently assessing the impact the adoption of the amended guidance will have on our Consolidated Financial Statements. Pensions In March 2017, the FASB issued amended guidance which requires presentation of all net periodic pension and postretirement benefit costs, other than service costs, in non-operating expenses in the Consolidated Statement of Operations. We have early adopted this amended guidance retrospectively as of the quarter ended March 31, 2017 using the practical expedient, which permits the use of amounts disclosed in our Employee Benefits note for prior comparative periods as the estimation basis for applying the retrospective presentation requirements. This resulted in the reclassification of a portion of postretirement costs from "Salaries and related expenses" to " Other expense, net " in the amount of $9.6 , $3.0 and $2.9 for the years ended December 31, 2017, 2016 and 2015, respectively. Restricted Cash In November 2016, the FASB issued amended guidance which requires that the Consolidated Statement of Cash Flows present the change during the period in the total cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We have early adopted this amended guidance retrospectively as of the quarter ended March 31, 2017. The Consolidated Statements of Cash Flows now reflect the inclusion and activity of restricted cash balances of $6.8 , $2.6 , $3.2 and $3.8 as of December 31, 2017, 2016, 2015 and 2014, respectively. Financial Instrument Credit Losses In June 2016, the FASB issued amended guidance on the accounting for credit losses on certain types of financial instruments, including trade receivables. The new model uses a forward-looking expected loss method, as opposed to the incurred loss method in current U.S. GAAP, which will generally result in earlier recognition of allowances for losses. This amended guidance is effective beginning January 1, 2020, with early adoption permitted as early as January 1, 2019. We are currently assessing the impact the adoption of the amended guidance will have on our Consolidated Financial Statements. Leases In February 2016, the FASB issued amended guidance on lease accounting which requires an entity to recognize a right-of-use asset and a corresponding lease liability on its balance sheet for virtually all of its leases with a term of more than 12 months, including those classified as operating leases. Both the asset and liability will initially be measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs. Consistent with current U.S. GAAP, the presentation of expenses and cash flows will depend primarily on the classification of the lease as either a finance or an operating lease. The new standard also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. This amended guidance, which will be effective beginning January 1, 2019, requires modified retrospective application, with early adoption permitted. We expect the adoption of this amended guidance to have a significant impact on our Consolidated Balance Sheets but not on our Consolidated Statements of Operations. Fair Value Measurements In January 2016, the FASB issued amended guidance which updates the fair value presentation requirements for certain financial instruments. Equity investments with readily determinable fair values, other than those accounted for using the equity method of accounting, will be measured at fair value with changes recorded through current earnings rather than other comprehensive income. This amended guidance will be effective for us beginning January 1, 2018, and is required to be adopted prospectively with a cumulative-effect adjustment recorded on our Consolidated Balance Sheets, if applicable. We do not expect the adoption of this amended guidance to have a significant impact on our Consolidated Financial Statements. Revenue Recognition In May 2014, the FASB issued amended guidance on revenue recognition which requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. We have elected to adopt the standard, effective January 1, 2018, using the full retrospective method. The standard, which accelerates the recognition of revenue primarily as a result of estimating variable consideration, mostly impacts the timing of revenue recognition between quarters, but also can affect, to a lesser extent, the amount of annual revenue recognized. Although we have determined that the standard results in an increase in the number of performance obligations within certain of our contractual arrangements, this is not expected to materially impact the amount or timing of revenue recognized. The standard will also result in an increase in third party costs of approximately $1,100.0 to $1,300.0 being included in revenue and costs, primarily in connection with our events businesses, which has no impact on operating income, net income or cash flows. The increase to retained earnings as of December 31, 2017 as a result of adopting the standard is not material. |
Results by Quarter (Unaudited)
Results by Quarter (Unaudited) (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Results by Quarter (Unaudited) Three Months Ended March 31, Three Months Ended June 30, Three Months Ended September 30, Three Months Ended December 31, 2017 2016 2017 2016 2017 2016 2017 2016 Revenue $ 1,753.9 $ 1,742.0 $ 1,884.9 $ 1,917.9 $ 1,902.6 $ 1,922.2 $ 2,341.0 $ 2,264.5 Salaries and related expenses 1 1,275.4 1,268.8 1,239.3 1,229.5 1,227.6 1,228.0 1,325.8 1,308.8 Office and general expenses 448.8 450.2 439.1 464.1 455.9 486.2 496.9 470.0 Operating income 29.7 23.0 206.5 224.3 219.1 208.0 518.3 485.7 Other income (expense), net 1,2 0.8 (19.2 ) (15.4 ) 0.4 (9.9 ) 5.3 (1.7 ) (26.8 ) Total (expenses) and other income (14.9 ) (36.0 ) (36.4 ) (18.5 ) (26.8 ) (11.7 ) (19.5 ) (44.6 ) (Benefit of) provision for income taxes 3 (2.1 ) (15.6 ) 75.4 43.7 42.5 63.8 166.1 106.1 Net income 18.1 2.7 94.6 160.2 148.8 132.7 333.5 336.9 Net income available to IPG common stockholders $ 21.5 $ 5.4 $ 94.7 $ 156.9 $ 146.2 $ 128.6 $ 316.6 $ 317.6 Earnings per share available to IPG common stockholders: Basic $ 0.05 $ 0.01 $ 0.24 $ 0.39 $ 0.38 $ 0.32 $ 0.82 $ 0.81 Diluted $ 0.05 $ 0.01 $ 0.24 $ 0.38 $ 0.37 $ 0.32 $ 0.81 $ 0.78 Dividends declared per common share $ 0.18 $ 0.15 $ 0.18 $ 0.15 $ 0.18 $ 0.15 $ 0.18 $ 0.15 1 As part of the adoption of FASB ASU 2017-07, we have reclassified a portion of postretirement costs from salaries and related expenses to other income (expense), net. 2 The three months ended June 30 and September 30, 2017 included pre-tax net losses of $13.1 and $8.7 , respectively, on sales of businesses. The three months ended March 31 and December 31, 2016 included pre-tax net losses of $16.3 and $25.3 , respectively, on sales of businesses. 3 The three months ended September 30, 2017 included a tax benefit of $31.2 related to foreign tax credits from distributions of unremitted earnings, which was reversed during the three months ended December 31, 2017 as a result of the enactment of the Tax Cuts and Jobs Act. The three months ended December 31, 2017 included a net tax benefit of $36.0 as a result of the enactment of the Tax Cuts and Jobs Act. The three months ended March 31, 2016 included a tax benefit of $12.2 due to the reversal of valuation allowances. The three months ended June 30, 2016 included a tax benefit of $23.4 related to the conclusion and settlement of a tax examination of previous years. The three months ended December 31, 2016 included a tax benefit of $37.4 for refunds to be claimed on future amended U.S. federal returns. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events In February 2018 , we announced that our Board had approved a new share repurchase program to repurchase from time to time up to $300.0 , excluding fees, of our common stock (the "2018 Share Repurchase Program"). The authorization for repurchases under the 2018 Share Repurchase Program is in addition to any amounts remaining for repurchase under the 2017 Share Repurchase Program. See Note 5 for further information on the 2017 Share Repurchase Program. There is no expiration date associated with the share repurchase programs. We may effect such repurchases through open market purchases, trading plans established in accordance with SEC rules, derivative transactions or other means. We expect to continue to repurchase our common stock in future periods, although the timing and amount of the repurchases will depend on market conditions and other funding requirements. We also announced in February 2018 that our Board had declared a common stock cash dividend of $0.21 per share, payable on March 15, 2018 to holders of record as of the close of business on March 1, 2018 . |
Significant Accounting Polici24
Significant Accounting Policies Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its consolidated subsidiaries, some of which are not wholly owned. Investments in companies over which we do not have control, but have the ability to exercise significant influence, are accounted for using the equity method of accounting. Investments in companies over which we have neither control nor have the ability to exercise significant influence are accounted for under the cost method. All intercompany accounts and transactions have been eliminated in consolidation. We have consolidated certain entities meeting the definition of variable interest entities, and the inclusion of these entities does not have a material impact on our Consolidated Financial Statements. |
Significant Accounting Polici25
Significant Accounting Policies Reclassifications (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain reclassifications and immaterial revisions have been made to the prior period financial statements to conform to the current-year presentation. We plan to adopt a new presentation for our Consolidated Statements of Operations beginning the first quarter of 2018 which will separately present Cost of services; Selling, general and administrative expenses; and Depreciation and amortization within our Operating expenses. For the years ended December 31, 2017 and 2016, our Selling, general and administrative expenses were $118.6 and $138.8 , respectively, which are primarily the expenses of our “Corporate and other” group, as disclosed further in Note 12 , excluding depreciation and amortization. For the years ended December 31, 2017 and 2016, Depreciation and amortization were $157.1 and $160.2 , respectively, which is also presented on the Consolidated Statements of Cash Flows. This change in presentation of expenses does not impact total operating expenses or operating income. |
Significant Accounting Polici26
Significant Accounting Policies Use of Estimates (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires us to make judgments, assumptions and estimates that affect the amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the reporting date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and assumptions. |
Significant Accounting Polici27
Significant Accounting Policies Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition Our revenues are primarily derived from the planning and execution of multi-channel advertising, marketing and communications programs around the world. Our revenues are directly dependent upon the advertising, marketing and corporate communications requirements of our existing clients and our ability to win new clients. Our revenue is typically lowest in the first quarter and highest in the fourth quarter. This reflects the seasonal spending of our clients, incentives earned at year end on various contracts and project work that is typically completed during the fourth quarter. Most of our client contracts are individually negotiated and, accordingly, the terms of client engagements and the bases on which we earn commissions and fees vary significantly. As is customary in the industry, our contracts generally provide for termination by either party on relatively short notice, usually 90 days. Our client contracts are complex arrangements that may include provisions for incentive compensation and vendor rebates and credits. Our largest clients are multinational entities and, as such, we often provide services to these clients out of multiple offices and across many of our agencies. In arranging for such services, it is possible that we will enter into global, regional and local agreements. Agreements of this nature are reviewed by legal counsel to determine the governing terms to be followed by the offices and agencies involved. Revenue for our services is recognized when all of the following criteria are satisfied: (i) persuasive evidence of an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) services have been performed. Depending on the terms of a client contract, fees for services performed can be recognized in three principal ways: proportional performance (input or output), straight-line (or monthly basis) or completed contract. • Fees are generally recognized as earned based on the proportional performance input method of revenue recognition in situations where our fee is reconcilable to the actual hours incurred to service the client as detailed in a contractual staffing plan, where the fee is earned on a per hour basis or where actual hours incurred are provided to the client on a periodic basis (whether or not the fee is reconcilable), with the amount of revenue recognized in these situations limited to the amount realizable under the client contract. We believe an input-based measure (the ‘hour’) is appropriate in situations where the client arrangement essentially functions as a time and out-of-pocket expense contract and the client receives the benefit of the services provided throughout the contract term. • Fees are recognized on a straight-line or monthly basis when service is provided essentially on a pro-rata basis and the terms of the contract support monthly basis accounting. • Certain fees (such as for major marketing events) are deferred until contract completion if the final act is so significant in relation to the service transaction taken as a whole or if any of the terms of the contract do not otherwise qualify for proportional performance or monthly basis recognition. Fees may also be deferred and recognized upon delivery of a project if the terms of the client contract identify individual discrete projects. Depending on the terms of the client contract, revenue is derived from diverse arrangements involving fees for services performed, commissions, performance incentive provisions and combinations of the three. Commissions are generally earned on the date of the broadcast or publication. Contractual arrangements with clients may also include performance incentive provisions designed to link a portion of our revenue to our performance relative to either qualitative or quantitative goals, or both. Performance incentives are recognized as revenue for quantitative targets when the target has been achieved and for qualitative targets when confirmation of the incentive is received from the client. The majority of our revenue is recorded as the net amount of our gross billings less pass-through expenses charged to a client. In most cases, the amount that is billed to clients significantly exceeds the amount of revenue that is earned and reflected in our Consolidated Financial Statements because of various pass-through expenses, such as production and media costs. We assess whether our agency or the third-party supplier is the primary obligor, and we evaluate the terms of our client agreements as part of this assessment. In addition, we give appropriate consideration to other key indicators such as latitude in establishing price, discretion in supplier selection and credit risk to the vendor. Because we operate broadly as an advertising agency, based on our primary lines of business and given the industry practice to generally record revenue on a net versus gross basis, we believe that there must be strong evidence in place to overcome the presumption of net revenue accounting. Accordingly, we generally record revenue net of pass-through charges as we believe the key indicators of the business suggest we generally act as an agent on behalf of our clients in our primary lines of business. In those businesses where the key indicators suggest we act as a principal (primarily sales promotion and event, sports and entertainment marketing), we record the gross amount billed to the client as revenue and the related incremental direct costs incurred as office and general expenses. In general, we also report revenue net of taxes assessed by governmental authorities that are directly imposed on our revenue-producing transactions. As we provide services as part of our core operations, we generally incur incidental expenses, which, in practice, are commonly referred to as “out-of-pocket” expenses. These expenses often include expenses related to airfare, mileage, hotel stays, out-of-town meals and telecommunication charges. We record the reimbursements received for such incidental expenses as revenue with a corresponding offset to office and general expense. We receive credits from our vendors and media outlets for transactions entered into on behalf of our clients that, based on the terms of our contracts and local law, are either remitted to our clients or retained by us. If amounts are to be passed through to clients, they are recorded as liabilities until settlement or, if retained by us, are recorded as revenue when earned. |
Significant Accounting Polici28
Significant Accounting Policies Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents are highly liquid investments, which include certificates of deposit, government securities, commercial paper and time deposits with original maturities of three months or less at the time of purchase and are stated at estimated fair value, which approximates cost. Cash is maintained at multiple high-credit-quality financial institutions. |
Significant Accounting Polici29
Significant Accounting Policies Allowance for Doubtful Accounts (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The allowance for doubtful accounts is estimated based on the aging of accounts receivable, reviews of client credit reports, industry trends and economic indicators, as well as reviews of recent payment history for specific customers. The estimate is based largely on a formula-driven calculation but is supplemented with economic indicators and knowledge of potential write-offs of specific client accounts. |
Significant Accounting Polici30
Significant Accounting Policies Expenditures Billable to Clients (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Expenditures Billable to Clients | Expenditures Billable to Clients Expenditures billable to clients are primarily comprised of production and media costs that have been incurred but have not yet been billed to clients, as well as fees that have been earned which have not yet been billed to clients. Unbilled amounts are presented in expenditures billable to clients regardless of whether they relate to our fees or production and media costs. A provision is made for unrecoverable costs as deemed appropriate. |
Significant Accounting Polici31
Significant Accounting Policies Accounts Payable (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Accounts Payable | Accounts Payable Accounts payable includes all operating payables, including those related to all media and production costs. These payables are due within one year. |
Significant Accounting Polici32
Significant Accounting Policies Investments (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Investments | Investments Our investments in short-term marketable securities include investment-grade time deposits, commercial paper, government securities with maturities greater than three months but less than twelve months and publicly traded companies over which we do not exert a significant influence. These investments are classified as available-for-sale and reported at fair value based on quoted market prices with net unrealized gains and losses reported as a component of accumulated other comprehensive loss. Our non-publicly traded investments and all other publicly traded investments, including investments to fund certain deferred compensation and retirement obligations, are accounted for using the equity method or cost method. We do not disclose the fair value for all equity method investments or investments held at cost as it is not practical to estimate fair value since there is no readily available market data and it is cost prohibitive to obtain independent valuations. We regularly review our equity and cost method investments to determine whether a significant event or change in circumstances has occurred that may impact the fair value of each investment. In the event a decline in fair value of an investment occurs, we determine if the decline has been other-than-temporary. We consider our investments strategic and long-term in nature, so we determine if the fair value decline is recoverable within a reasonable period. For our investments, we evaluate fair value based on specific information (valuation methodologies, estimates of appraisals, financial statements, etc.) in addition to quoted market price, if available. We consider all known quantitative and qualitative factors in determining if an other-than-temporary decline in value of an investment has occurred. |
Significant Accounting Polici33
Significant Accounting Policies Derivatives (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Derivatives | Derivatives We are exposed to market risk related to interest rates, foreign currency rates and certain balance sheet items. From time to time we enter into derivative instruments for risk management purposes, and not for speculative purposes. All derivative instruments are recorded at fair value on our balance sheet. Changes in fair value are immediately included in earnings if the derivatives are not designated as a hedge instrument or if the derivatives do not qualify as effective hedges. For derivatives designated as hedge instruments, we evaluate for hedge accounting both at inception and throughout the hedge period. If a derivative is designated as a fair value hedge, then changes in the fair value of the derivative are offset against the changes in the fair value of the underlying hedged item. If a derivative is designated as a cash flow hedge, then the effective portion of the changes in the fair value of the derivative is recognized as a component of accumulated other comprehensive income and subsequently reclassified to earnings in our Consolidated Statement of Operations in the same period as the underlying hedged transaction affects earnings. |
Significant Accounting Polici34
Significant Accounting Policies Property and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Property and Equipment | Property and Equipment Furniture, equipment, leasehold improvements and buildings are stated at cost, net of accumulated depreciation. Furniture and equipment are depreciated generally using the straight-line method over the estimated useful lives of the related assets, which range from 3 to 7 years for furniture and equipment, 10 to 35 years for buildings and the shorter of the useful life or the remaining lease term for leasehold improvements. Land is stated at cost and is not depreciated. We capitalize certain internal and external costs incurred to acquire or create internal use software, principally related to our enterprise resource planning (“ERP”) systems. Our ERP systems are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over 10 years. All other internal use computer software are stated at cost, net of accumulated amortization and are amortized using the straight-line method over the estimated useful lives of the related assets, which range from 3 to 7 years. |
Significant Accounting Polici35
Significant Accounting Policies Goodwill and Other Intangible Assets (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets We account for our business combinations using the acquisition accounting method, which requires us to determine the fair value of net assets acquired and the related goodwill and other intangible assets. Determining the fair value of assets acquired and liabilities assumed requires management's judgment and involves the use of significant estimates, including projections of future cash inflows and outflows, discount rates, asset lives and market multiples. Considering the characteristics of advertising, specialized marketing and communication services companies, our acquisitions usually do not have significant amounts of tangible assets, as the principal asset we typically acquire is creative talent. As a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. We review goodwill and other intangible assets with indefinite lives not subject to amortization as of October 1 st each year and whenever events or significant changes in circumstances indicate that the carrying value may not be recoverable. We evaluate the recoverability of goodwill at a reporting unit level. We have 11 reporting units that were subject to the 2017 annual impairment testing. Our annual impairment review as of October 1, 2017 did not result in an impairment charge for any of our reporting units. For reporting units not included in the qualitative assessment, or for any reporting units identified in the qualitative assessment as "more likely than not" that the fair value is less than its carrying value, the quantitative impairment test is performed. For our annual impairment test, we compare the respective fair value of our reporting units' equity to the carrying value of their net assets. The sum of the fair values of all our reporting units is also reconciled to our current market capitalization plus an estimated control premium. Goodwill allocated to a reporting unit whose fair value is equal to or greater than its carrying value is not impaired, and no further testing is required. Should the carrying amount for a reporting unit exceed its fair value, then the quantitative impairment test is failed and impaired goodwill is written down to its fair value with a charge to expense in the period the impairment is identified. The fair value of each reporting unit for 2017 and 2016 was estimated using a combination of the income approach, which incorporates the use of the discounted cash flow method, and the market approach, which incorporates the use of earnings and revenue multiples based on market data. We review intangible assets with definite lives subject to amortization whenever events or circumstances indicate that a carrying amount of an asset may not be recoverable. Recoverability of these assets is determined by comparing the carrying value of these assets to the estimated undiscounted future cash flows expected to be generated by these assets. These assets are impaired when their carrying value exceeds their fair value. Impaired intangible assets with definite lives subject to amortization are written down to their fair value with a charge to expense in the period the impairment is identified. Intangible assets with definite lives are amortized on a straight-line basis with estimated useful lives generally between 7 and 15 years. Events or circumstances that might require impairment testing include the loss of a significant client, the identification of other impaired assets within a reporting unit, loss of key personnel, the disposition of a significant portion of a reporting unit, significant decline in stock price or a significant adverse change in business climate or regulations. |
Significant Accounting Polici36
Significant Accounting Policies Foreign Currencies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Foreign Currencies | Foreign Currencies The functional currency of our foreign operations is generally their respective local currency. Assets and liabilities are translated at the exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rates during the period presented. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss in the stockholders’ equity section of our Consolidated Balance Sheets. Currency transaction gains or losses primarily arising from transactions in currencies other than the functional currency are included in office and general expenses. Foreign currency transactions resulted in pre-tax gains of $1.9 , $2.1 and $2.0 in for the years ended December 31, 2017 , 2016 and 2015 , respectively. We monitor the currencies of countries in which we operate in order to determine if the country should be considered a highly inflationary environment. A currency is determined to be highly inflationary when there is cumulative inflation of approximately 100% or more over a three-year period. If this occurs the functional currency of that country would be changed to our reporting currency, the U.S. Dollar, and foreign exchange gains or losses would be recognized on all monetary transactions, assets and liabilities in currencies other than the U.S. Dollar until the currency is no longer considered highly inflationary. |
Significant Accounting Polici37
Significant Accounting Policies Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes includes U.S. federal, state, local and foreign taxes. Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. We evaluate the realizability of our deferred tax assets and establish a valuation allowance when it is “more likely than not” that all or a portion of the deferred tax assets will not be realized. We evaluate our tax positions using the “more likely than not” recognition threshold and then apply a measurement assessment to those positions that meet the recognition threshold. The factors used in assessing valuation allowances include all available evidence, such as past operating results, estimates of future taxable income and the feasibility of tax planning strategies. We have established tax reserves that we believe to be adequate in relation to the potential for additional assessments in each of the jurisdictions in which we are subject to taxation. We regularly assess the likelihood of additional tax assessments in those jurisdictions and adjust our reserves as additional information or events require. In response to the enactment of the Tax Act, the SEC issued SAB 118 on December 22, 2017, which acknowledges that the information necessary to determine such income tax effects may not be sufficiently available, prepared or analyzed in reasonable detail to complete the accounting under U.S. GAAP. SAB 118 allows for the reporting of provisional amounts for those specific tax effects for which a reasonable estimate can be made, and for no amounts to be recorded where a reasonable estimate cannot be made. Any subsequent adjustments to reported amounts will be made over the measurement period, which begins in the reporting period that includes the Tax Act's enactment date and ends when an entity has obtained, prepared and analyzed the information that is needed in order to complete the accounting requirements under U.S. GAAP, not to exceed one year from the enactment date. We have reasonably estimated and recorded provisional amounts resulting from the enactment of the Tax Act. Refer to Note 7 to our Consolidated Financial Statements for further information. |
Significant Accounting Polici38
Significant Accounting Policies Redeemable Noncontrolling Interests (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Many of our acquisitions include provisions under which the noncontrolling equity owners can require us to purchase additional interests in a subsidiary at their discretion. Payments for these redeemable noncontrolling interests may be contingent on projected operating performance and satisfying other conditions specified in the related agreements. These payments are also subject to revision in accordance with the terms of the agreements. We record these redeemable noncontrolling interests in “mezzanine equity” in our Consolidated Balance Sheets. Each reporting period, redeemable noncontrolling interests are reported at their estimated redemption value, but not less than their initial fair value. Any adjustment to the redemption value above initial value prior to exercise will also impact retained earnings or additional paid-in capital (“APIC”), but will not impact net income. Adjustments as a result of currency translation will affect the redeemable noncontrolling interest balance, but do not impact retained earnings or additional paid-in capital. |
Significant Accounting Polici39
Significant Accounting Policies Earnings Per Share (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Earnings Per Share | Earnings Per Share (“EPS”) Basic EPS available to IPG common stockholders equals net income available to IPG common stockholders divided by the weighted-average number of common shares outstanding for the applicable period. Diluted EPS equals net income available to IPG common stockholders divided by the weighted-average number of common shares outstanding, plus any additional common shares that would have been outstanding if potentially dilutive shares had been issued. Diluted EPS reflect the potential dilution that would occur if certain potentially dilutive securities were exercised. The potential issuance of common stock is assumed to occur at the beginning of the year (or at the time of issuance of the potentially dilutive instrument, if later) and the incremental shares are included using the treasury stock method. The proceeds utilized in applying the treasury stock method consist of the amount, if any, to be paid upon exercise and, as it relates to stock-based compensation, the amount of compensation cost attributed to future service not yet recognized. These proceeds are then assumed to be used to purchase common stock at the average market price of our stock during the period. The incremental shares (difference between the shares assumed to be issued and the shares assumed to be purchased), to the extent they would have been dilutive, are included in the denominator of the diluted EPS calculation. We may be required to calculate basic EPS using the two-class method as a result of our redeemable noncontrolling interests. To the extent that the redemption value increases and exceeds the then-current fair value of a redeemable noncontrolling interest, net income available to IPG common stockholders (used to calculate EPS) could be negatively impacted by that increase, subject to certain limitations. The partial or full recovery of any reductions to net income available to IPG common stockholders (used to calculate EPS) is limited to any cumulative prior-period reductions. For the years ended December 31, 2017 , 2016 and 2015 , there was no impact to EPS for adjustments related to our redeemable noncontrolling interests. |
Significant Accounting Polici40
Significant Accounting Policies Pension and Postretirement Benefits (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits We have pension and postretirement benefit plans covering certain domestic and international employees. We use various actuarial methods and assumptions in determining our net pension and postretirement benefit costs and obligations, including the discount rate used to determine the present value of future benefits, expected long-term rate of return on plan assets and healthcare cost trend rates. The overfunded or underfunded status of our pension and postretirement benefit plans is recorded on our Consolidated Balance Sheet. |
Significant Accounting Polici41
Significant Accounting Policies Stock-Based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Compensation costs related to share-based transactions, including employee stock options, are recognized in the Consolidated Financial Statements based on fair value. Stock-based compensation expense is generally recognized ratably over the requisite service period based on the estimated grant-date fair value, net of estimated forfeitures. |
Significant Accounting Polici42
Significant Accounting Policies Treasury Stock (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Treasury Stock, Shares [Abstract] | |
Treasury Stock [Text Block] | Treasury Stock We account for repurchased common stock under the cost method and include such treasury stock as a component of our Consolidated Statements of Stockholders' Equity. Upon retirement, we reduce common stock for the par value of the shares being retired and the excess of the cost of the shares over par value as a reduction to APIC, to the extent there is APIC in the same class of stock, and any remaining amount to retained earnings. These retired shares remain authorized but unissued. In October and November 2017, we retired 13.4 shares of our treasury stock, which resulted in a reduction in common stock of $1.3 , treasury stock of $304.4 and APIC of $303.1 . In October 2016, we retired 13.7 shares of our treasury stock, which resulted in a reduction in common stock of $1.4 , treasury stock of $311.0 and APIC of $309.6 . In October 2015, we retired 11.3 shares of our treasury stock, which resulted in a reduction in common stock of $1.2 , treasury stock of $233.2 and APIC of $232.0 . There was no effect on total stockholders' equity as a result of these retirements. |
Debt and Credit Agreements Sche
Debt and Credit Agreements Schedule of Long-term Debt Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | A summary of the carrying amounts and fair values of our long-term debt is listed below. Effective Interest Rate December 31, 2017 2016 Book Value Fair Value 1 Book Value Fair 1 2.25% Senior Notes due 2017 2.30 % $ 0.0 $ 0.0 $ 299.4 $ 301.4 4.00% Senior Notes due 2022 (less unamortized discount and issuance costs of $1.3 and $1.1, respectively) 4.13 % 247.6 259.0 247.0 258.4 3.75% Senior Notes due 2023 (less unamortized discount and issuance costs of $0.8 and $2.1, respectively) 4.32 % 497.1 513.2 496.6 503.3 4.20% Senior Notes due 2024 (less unamortized discount and issuance costs of $0.7 and $2.6, respectively) 4.24 % 496.7 524.2 496.2 511.6 Other notes payable and capitalized leases 46.2 46.2 65.4 65.4 Total long-term debt 1,287.6 1,604.6 Less: current portion 2.0 323.9 Long-term debt, excluding current portion $ 1,285.6 $ 1,280.7 1 See Note 10 for information on the fair value measurement of our long-term debt. |
Debt and Credit Agreements Sc44
Debt and Credit Agreements Schedule of Maturities of Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Annual maturities are scheduled as follows based on the book value as of December 31, 2017 . 2018 $ 2.0 2019 3.1 2020 1.0 2021 0.0 2022 247.6 Thereafter 1,033.9 Total long-term debt $ 1,287.6 |
Debt and Credit Agreements Sc45
Debt and Credit Agreements Schedule of Financial Covenants in Credit Agreement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Line of Credit Facility [Abstract] | |
Schedule of Financial Covenants in Credit Agreement [Table Text Block] | Interest coverage ratio (not less than): 1 5.00x Leverage ratio (not greater than): 2 3.50x 1 The interest coverage ratio is defined as EBITDA, as defined in the Credit Agreement, to net interest expense for the four quarters then ended. 2 The leverage ratio is defined as debt as of the last day of such fiscal quarter to EBITDA, as defined in the Credit Agreement, for the four quarters then ended. The leverage ratio may be changed to not more than 4.00 to 1 at our election for four consecutive fiscal quarters, beginning with the fiscal quarter in which there is an occurrence of one or more acquisitions with an aggregate purchase price of at least $200.0. |
Earnings Per Share Basic and Di
Earnings Per Share Basic and Diluted Earnings Per Common Share Available to IPG Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share Available to IPG Common Stockholders | The following sets forth basic and diluted earnings per common share available to IPG common stockholders. Years ended December 31, 2017 2016 2015 Net income available to IPG common stockholders $ 579.0 $ 608.5 $ 454.6 Weighted-average number of common shares outstanding - basic 389.6 397.9 408.1 Dilutive effect of stock options and restricted shares 7.7 10.1 7.6 Weighted-average number of common shares outstanding - diluted 397.3 408.0 415.7 Earnings per share available to IPG common stockholders: Basic $ 1.49 $ 1.53 $ 1.11 Diluted $ 1.46 $ 1.49 $ 1.09 |
Acquisitions Cash Paid for Curr
Acquisitions Cash Paid for Current and Prior Years' Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Cash Paid For Current And Prior Years' Acquisitions [Table Text Block] | Details of cash paid for current and prior years' acquisitions are listed below. Years ended December 31, 2017 2016 2015 Cost of investment: current-year acquisitions $ 36.8 $ 65.7 $ 37.8 Cost of investment: prior-year acquisitions 54.6 40.7 53.1 Less: net cash acquired (7.1 ) (13.6 ) (9.2 ) Total cost of investment 84.3 92.8 81.7 Operating payments 1 47.1 19.1 18.4 Total cash paid for acquisitions 2 $ 131.4 $ 111.9 $ 100.1 1 Represents cash payments for amounts that have been recognized in operating expenses since the date of acquisition either relating to adjustments to estimates in excess of the initial value of contingent payments recorded or were contingent upon the future employment of the former owners of the acquired companies. Amounts are reflected in the operating section of the Consolidated Statements of Cash Flows. 2 Of the total cash paid for acquisitions, $30.6 , $52.0 and $28.6 for the years ended December 31, 2017 , 2016 and 2015 , respectively, are classified under the investing section of the Consolidated Statements of Cash Flows as acquisitions, net of cash acquired. These amounts relate to initial payments for new transactions. Of the total cash paid for acquisitions, $53.7 , $40.8 and $53.1 for the years ended December 31, 2017 , 2016 and 2015 , respectively, are classified under the financing section of the Consolidated Statements of Cash Flows as acquisition-related payments. These amounts relate to deferred payments and increases in our ownership interest for prior acquisitions. |
Acquisitions Redeemable Noncont
Acquisitions Redeemable Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Redeemable Noncontrolling Interest | . The following table presents changes in our redeemable noncontrolling interests. Years ended December 31, 2017 2016 2015 Balance at beginning of period $ 252.8 $ 251.9 $ 257.4 Change in related noncontrolling interests balance (2.8 ) 4.9 0.8 Changes in redemption value of redeemable noncontrolling interests: Additions 7.7 6.8 16.5 Redemptions and other (18.5 ) (14.8 ) (25.1 ) Redemption value adjustments 12.9 4.0 2.3 Balance at end of period $ 252.1 $ 252.8 $ 251.9 |
Supplementary Data Valuation an
Supplementary Data Valuation and Qualifying Accounts - Allowance for Uncollectible Accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts - Allowance for Uncollectible Accounts [Abstract] | |
Valuation and Qualifying Accounts - Allowance for Uncollectible Accounts Receivable | Valuation and Qualifying Accounts – Allowance for Uncollectible Accounts Receivable Years ended December 31, 2017 2016 2015 Balance at beginning of period $ 55.7 $ 54.2 $ 59.5 Charges to costs and expenses 9.5 16.7 11.4 Deductions: Dispositions (1.0 ) (2.5 ) (2.8 ) Uncollectible accounts written off (25.5 ) (9.4 ) (9.8 ) Foreign currency translation adjustments 4.0 (3.3 ) (4.1 ) Balance at end of period $ 42.7 $ 55.7 $ 54.2 |
Supplementary Data Property and
Supplementary Data Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and Equipment December 31, 2017 2016 Furniture and equipment $ 634.8 $ 604.2 Leasehold improvements 641.5 599.8 Internal-use computer software 331.3 306.5 Land and buildings 79.0 73.1 Gross property and equipment 1,686.6 1,583.6 Less: accumulated depreciation (1,036.2 ) (961.6 ) Total property and equipment, net $ 650.4 $ 622.0 |
Supplementary Data Accrued Liab
Supplementary Data Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued Liabilities The following table presents the components of accrued liabilities. December 31, 2017 2016 Salaries, benefits and related expenses $ 441.7 $ 499.0 Office and related expenses 53.2 46.7 Acquisition obligations 42.0 77.5 Interest 16.4 17.3 Other 121.4 153.5 Total accrued liabilities $ 674.7 $ 794.0 |
Supplementary Data Other Expens
Supplementary Data Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Other Expense, net Results of operations include certain items that are not directly associated with our revenue-producing operations. Years ended December 31, 2017 2016 2015 Net losses on sales of businesses $ (24.1 ) $ (41.4 ) $ (50.0 ) Other (2.1 ) 1.1 0.4 Total other expense, net $ (26.2 ) $ (40.3 ) $ (49.6 ) |
Supplementary Data Share Repurc
Supplementary Data Share Repurchase Program (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program [Table Text Block] | The following table presents our share repurchase activity under our share repurchase programs. Years ended December 31, 2017 2016 2015 Number of shares repurchased 13.7 13.3 13.6 Aggregate cost, including fees $ 300.1 $ 303.3 $ 285.2 Average price per share, including fees $ 21.97 $ 22.76 $ 20.97 |
Supplementary Data Supplemental
Supplementary Data Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental Cash Flow Information Years ended December 31, 2017 2016 2015 Cash paid for interest $ 82.3 $ 78.8 $ 74.5 Cash paid for income taxes, net of refunds 1 228.4 244.1 231.9 1 Refunds of $31.9 , $26.6 and $13.0 were received for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Intangible Assets Changes in Ca
Intangible Assets Changes in Carrying Value of Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Value of Goodwill | The changes in the carrying value of goodwill for our segments, IAN and CMG, for the years ended December 31, 2017 and 2016 are listed below. IAN CMG Total 1 Balance as of December 31, 2015 $ 3,051.4 $ 557.1 $ 3,608.5 Acquisitions 32.7 89.3 122.0 Foreign currency and other (40.3 ) (15.8 ) (56.1 ) Balance as of December 31, 2016 $ 3,043.8 $ 630.6 $ 3,674.4 Acquisitions 39.6 15.5 55.1 Foreign currency and other 78.4 12.5 90.9 Balance as of December 31, 2017 $ 3,161.8 $ 658.6 $ 3,820.4 1 For all periods presented, no goodwill impairment charge has been recorded. |
Intangible Assets Summary of Ot
Intangible Assets Summary of Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Other Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following table provides a summary of other intangible assets, which are included in other assets on our Consolidated Balance Sheets. December 31, 2017 2016 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Customer lists $ 267.3 $ (172.2 ) $ 95.1 $ 252.4 $ (151.4 ) $ 101.0 Trade names 68.8 (33.8 ) 35.0 65.5 (28.9 ) 36.6 Other 14.4 (3.8 ) 10.6 14.3 (3.8 ) 10.5 Total $ 350.5 $ (209.8 ) $ 140.7 $ 332.2 $ (184.1 ) $ 148.1 |
Intangible Assets Estimated fut
Intangible Assets Estimated future amortization of other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Other Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated annual amortization expense for other intangible assets for the next five years as of December 31, 2017 is listed below. 2018 2019 2020 2021 2022 Estimated amortization expense $ 23.3 $ 22.1 $ 20.4 $ 19.3 $ 16.4 |
Income Taxes Schedule of Income
Income Taxes Schedule of Income before Income Tax, Domestic and Foreign (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income before income taxes are listed below. Years ended December 31, 2017 2016 2015 Domestic $ 528.2 $ 504.7 $ 461.0 Foreign 347.8 325.5 301.2 Total $ 876.0 $ 830.2 $ 762.2 |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of Provision for Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes is listed below. Years ended December 31, 2017 2016 2015 U.S. federal income taxes (including foreign withholding taxes): Current $ 154.1 $ 54.3 $ 117.8 Deferred (32.2 ) 36.6 46.9 121.9 90.9 164.7 State and local income taxes: Current 18.8 8.2 15.1 Deferred 20.4 (1.5 ) 13.0 39.2 6.7 28.1 Foreign income taxes: Current 107.9 89.8 100.4 Deferred 12.9 10.6 (10.4 ) 120.8 100.4 90.0 Total $ 281.9 $ 198.0 $ 282.8 |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the effective income tax rate as reflected in our Consolidated Statements of Operations to the U.S. federal statutory income tax rate is listed below. Years ended December 31, 2017 2016 2015 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Income tax provision at U.S. federal statutory rate $ 306.6 $ 290.6 $ 266.8 State and local income taxes, net of U.S. federal income tax benefit 23.5 4.3 18.3 Impact of foreign operations, including withholding taxes (6.7 ) (23.9 ) 14.7 Change in net valuation allowance 1 1.4 (13.4 ) (20.6 ) Divestitures 1.1 9.7 11.9 U.S. federal tax credits (1.7 ) (44.6 ) 0.0 Stock compensation (15.3 ) (9.0 ) 0.0 Increase/(decrease) in unrecognized tax benefits 7.0 (22.2 ) (6.5 ) Net impact of the Tax Act (36.0 ) 0.0 0.0 Statutory tax rate changes 0.0 11.4 1.4 Other 2.0 (4.9 ) (3.2 ) Provision for income taxes $ 281.9 $ 198.0 $ 282.8 Effective income tax rate on operations 32.2 % 23.8 % 37.1 % 1 Reflects changes in valuation allowances that impacted the effective income tax rate for each year presented. |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred tax assets and liabilities are listed below. December 31, 2017 2016 Postretirement/post-employment benefits $ 19.5 $ 23.1 Deferred compensation 91.7 192.4 Pension costs 27.6 36.6 Basis differences in fixed assets (52.0 ) (80.2 ) Rent 27.5 41.7 Interest 45.8 58.9 Accruals and reserves 18.4 17.2 Allowance for doubtful accounts 10.2 13.3 Basis differences in intangible assets (281.3 ) (405.0 ) Investments in equity securities (3.3 ) (6.3 ) Tax loss/tax credit carry forwards 357.9 354.6 Prepaid expenses (1.7 ) (2.9 ) Deferred revenue (38.2 ) (32.0 ) Other 44.7 44.3 Total deferred tax assets, net 266.8 255.7 Valuation allowance (243.3 ) (255.6 ) Net deferred tax assets $ 23.5 $ 0.1 |
Income Taxes Summary of Valuati
Income Taxes Summary of Valuation Allowance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Valuation Allowance [Table Text Block] | The change in the valuation allowance is listed below. Years ended December 31, 2017 2016 2015 Balance at beginning of period $ 255.6 $ 275.1 $ 332.2 Reversed to costs and expenses (4.6 ) (15.4 ) (20.8 ) (Reversed) charged to gross tax assets and other accounts 1 (27.0 ) 9.5 (9.2 ) Foreign currency translation 19.3 (13.6 ) (27.1 ) Balance at end of period $ 243.3 $ 255.6 $ 275.1 |
Income Taxes Schedule of Unreco
Income Taxes Schedule of Unrecognized Tax Benefits Activity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits Activity [Table Text Block] | The table below summarizes the activity related to our unrecognized tax benefits. Years ended December 31, 2017 2016 2015 Balance at beginning of period $ 246.7 $ 226.9 $ 238.0 Increases as a result of tax positions taken during a prior year 6.3 65.0 5.2 Decreases as a result of tax positions taken during a prior year (8.1 ) (47.5 ) (19.7 ) Settlements with taxing authorities (0.8 ) (4.6 ) (4.1 ) Lapse of statutes of limitation (3.3 ) (11.8 ) (3.8 ) Increases as a result of tax positions taken during the current year 31.1 18.7 11.3 Balance at end of period $ 271.9 $ 246.7 $ 226.9 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Loss, Net of Tax Schedule of Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive loss, net of tax, by component. Foreign Currency Translation Adjustments Available-for-Sale Securities Derivative Instruments Defined Benefit Pension and Other Postretirement Plans Total Balance as of December 31, 2015 $ (665.6 ) $ 1.3 $ (9.6 ) $ (171.7 ) $ (845.6 ) Other comprehensive (loss) income before reclassifications (54.8 ) 0.5 0.0 (70.7 ) (125.0 ) Amount reclassified from accumulated other comprehensive loss, net of tax 3.7 (1.2 ) 1.2 4.4 8.1 Balance as of December 31, 2016 $ (716.7 ) $ 0.6 $ (8.4 ) $ (238.0 ) $ (962.5 ) Other comprehensive income (loss) before reclassifications 130.7 0.0 0.0 (9.7 ) 121.0 Amount reclassified from accumulated other comprehensive loss, net of tax 1.1 (0.6 ) 1.6 12.0 14.1 Balance as of December 31, 2017 $ (584.9 ) $ 0.0 $ (6.8 ) $ (235.7 ) $ (827.4 ) |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Loss, Net of Tax Reclassification out of Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amounts reclassified from accumulated other comprehensive loss, net of tax, for the years ended December 31, 2017 , 2016 and 2015 are as follows: Years ended December 31, Affected Line Item in the Consolidated Statements of Operations 2017 2016 2015 Foreign currency translation adjustments 1 $ 1.1 $ 3.7 $ 23.3 Other expense, net Gains on available-for-sale securities (0.7 ) (1.3 ) 0.0 Other expense, net Losses on derivative instruments 2.1 2.0 2.0 Interest expense Amortization of defined benefit pension and postretirement plans items 13.7 5.8 10.4 Other expense, net Tax effect (2.1 ) (2.1 ) (4.2 ) Provision for income taxes Total amount reclassified from accumulated other comprehensive loss, net of tax $ 14.1 $ 8.1 $ 31.5 1 These foreign currency translation adjustments are primarily a result of the sales of businesses. |
Incentive Compensation Plans Sc
Incentive Compensation Plans Schedule of Stock-based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |
Schedule of Stock-based Compensation Expense | The amounts of stock-based compensation expense as reflected in salaries and related expenses in our Consolidated Statements of Operations, and the related tax benefit, are listed below. Years ended December 31, 2017 2016 2015 Stock options $ 0.0 $ 0.2 $ 1.0 Stock-settled awards 20.5 16.0 11.6 Cash-settled awards 1.0 0.9 0.7 Performance-based awards 61.5 69.4 57.7 Employee stock purchase plan 1.0 0.7 0.7 Other 1 0.5 0.8 0.9 Stock-based compensation expense $ 84.5 $ 88.0 $ 72.6 Tax benefit $ 30.4 $ 32.1 $ 26.3 1 Represents charges recorded for severance expense related to stock-based compensation awards. |
Incentive Compensation Plans 67
Incentive Compensation Plans Schedule of Stock Options Activity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Stock Options Assumptions [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes our stock option activity during 2017 . Options Weighted- Average Exercise Price (per option) Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Stock options outstanding as of January 1, 2017 4.8 $ 9.83 Exercised (1.1 ) 11.15 Stock options outstanding as of December 31, 2017 3.7 $ 9.44 2.6 $ 39.2 |
Incentive Compensation Plans St
Incentive Compensation Plans Stock-based Compensation, Grants in Period Weighted Average (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Stock Options Assumptions [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | Stock-based compensation awards expected to be settled in cash have been classified as liabilities in our Consolidated Balance Sheets as of December 31, 2017 and 2016 . Years ended December 31, 2017 2016 2015 Stock-Settled Awards: Awards granted 0.8 1.1 0.8 Weighted-average grant-date fair value (per award) $ 24.18 $ 21.87 $ 22.07 Total fair value of vested awards distributed $ 22.6 $ 17.5 $ 18.8 Cash-Settled Awards: Awards granted 0.0 0.1 0.1 Weighted-average grant-date fair value (per award) $ 23.33 $ 22.54 $ 20.46 Total fair value of vested awards distributed $ 0.9 $ 0.7 $ 0.2 Performance-Based Awards: Awards granted 4.8 3.3 2.9 Weighted-average grant-date fair value (per award) $ 20.06 $ 19.58 $ 20.88 Total fair value of vested awards distributed $ 112.4 $ 27.9 $ 18.7 |
Incentive Compensation Plans 69
Incentive Compensation Plans Schedule of Nonvested Stock Activity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Stock Options Assumptions [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of the activity of our non-vested stock-settled awards, cash-settled awards and performance-based awards during 2017 is presented below (performance-based awards are shown at 100% of the shares originally granted). Stock-Settled Awards Cash-Settled Awards Performance-Based Awards Awards Weighted- Average Grant-Date Fair Value (per award) Awards Weighted- Average Grant-Date Fair Value (per award) Awards Weighted- Average Grant-Date Fair Value (per award) Non-vested as of January 1, 2017 2.3 $ 20.84 0.1 $ 20.49 8.5 $ 19.16 Granted 0.8 24.18 0.0 23.33 4.8 20.06 Vested (1.0 ) 19.49 0.0 19.27 (4.6 ) 16.64 Forfeited 0.0 21.86 0.0 20.50 (0.4 ) 20.00 Non-vested as of December 31, 2017 2.1 $ 22.78 0.1 $ 22.52 8.3 $ 21.05 Total unrecognized compensation expense remaining $ 24.1 $ 1.0 $ 71.9 Weighted-average years expected to be recognized over 1.0 1.0 1.7 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value of Assets and Liabilities Measured on a Recurring Basis (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables present information about our financial instruments measured at fair value on a recurring basis as of December 31, 2017 and 2016 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. December 31, 2017 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 201.6 $ 0.0 $ 0.0 $ 201.6 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 147.0 $ 147.0 December 31, 2016 Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 440.8 $ 0.0 $ 0.0 $ 440.8 Cash and cash equivalents Liabilities Contingent acquisition obligations 1 $ 0.0 $ 0.0 $ 205.4 $ 205.4 1 Contingent acquisition obligations includes deferred acquisition payments and unconditional obligations to purchase additional noncontrolling equity shares of consolidated subsidiaries. Fair value measurement of the obligations is based upon actual and projected operating performance targets as specified in the related agreements. The decrease in this balance of $58.4 from December 31, 2016 to December 31, 2017 is primarily due to payments of $105.3 , partially offset by acquisitions and exercised put options of $40.8 . The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. |
Fair Value Measurements Assets
Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Nonrecurring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Assets and Liabilities Measured at Fair Value on Recurring Basis [Abstract] | |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table presents information about our financial instruments that are not measured at fair value on a recurring basis as of December 31, 2017 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. December 31, 2017 Level 1 Level 2 Level 3 Total Total long-term debt $ 0.0 $ 1,296.4 $ 46.2 $ 1,342.6 |
Schedule of Defined Benefit Pla
Schedule of Defined Benefit Plans Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The change in the benefit obligation, the change in plan assets, the funded status and amounts recognized for the Domestic Pension Plan, the significant foreign pension plans and the domestic postretirement benefit plan are listed below. Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Years ended December 31, 2017 2016 2017 2016 2017 2016 Benefit Obligation Projected benefit obligation as of January 1 $ 126.6 $ 126.9 $ 530.6 $ 537.9 $ 32.3 $ 33.9 Service cost 0.0 0.0 4.9 6.7 0.0 0.0 Interest cost 5.1 5.9 13.5 15.1 1.3 1.5 Benefits paid (11.4 ) (13.6 ) (19.0 ) (25.7 ) (5.9 ) (5.8 ) Plan participant contributions 0.0 0.0 0.2 0.2 1.6 1.6 Actuarial losses 5.1 7.4 20.3 115.6 2.5 1.1 Settlements and curtailments 0.0 0.0 (19.8 ) (6.3 ) 0.0 0.0 Foreign currency effect 0.0 0.0 50.4 (84.2 ) 0.0 0.0 Other 0.0 0.0 1.2 (28.7 ) 0.0 0.0 Projected benefit obligation as of December 31 $ 125.4 $ 126.6 $ 582.3 $ 530.6 $ 31.8 $ 32.3 Fair Value of Plan Assets Fair value of plan assets as of January 1 $ 95.2 $ 101.1 $ 365.9 $ 399.6 $ 0.0 $ 0.0 Actual return on plan assets 12.4 7.7 25.1 47.9 0.0 0.0 Employer contributions 2.6 0.0 17.5 23.2 4.3 4.2 Plan participant contributions 0.0 0.0 0.2 0.2 1.6 1.6 Benefits paid (11.4 ) (13.6 ) (19.0 ) (25.7 ) (5.9 ) (5.8 ) Settlements 0.0 0.0 (19.1 ) (2.2 ) 0.0 0.0 Foreign currency effect 0.0 0.0 33.2 (68.6 ) 0.0 0.0 Other 0.0 0.0 0.4 (8.5 ) 0.0 0.0 0.0 Fair value of plan assets as of December 31 $ 98.8 $ 95.2 $ 404.2 $ 365.9 $ 0.0 $ 0.0 Funded status of the plans at December 31 $ (26.6 ) $ (31.4 ) $ (178.1 ) $ (164.7 ) $ (31.8 ) $ (32.3 ) Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan December 31, 2017 2016 2017 2016 2017 2016 Amounts recognized in Consolidated Balance Sheets Non-current asset $ 0.0 $ 0.0 $ 9.0 $ 7.6 $ 0.0 $ 0.0 Current liability 0.0 0.0 (6.5 ) (5.5 ) (3.1 ) (3.2 ) Non-current liability (26.6 ) (31.4 ) (180.6 ) (166.8 ) (28.7 ) (29.1 ) Net liability recognized $ (26.6 ) $ (31.4 ) $ (178.1 ) $ (164.7 ) $ (31.8 ) $ (32.3 ) Accumulated benefit obligation $ 125.4 $ 126.6 $ 577.9 $ 526.2 Amounts recognized in Accumulated Other Comprehensive Loss, net Net actuarial loss $ 52.2 $ 54.9 $ 201.6 $ 183.4 $ 4.2 $ 1.7 Prior service cost (credit) 0.0 0.0 1.1 0.9 (0.4 ) (0.6 ) Total amount recognized $ 52.2 $ 54.9 $ 202.7 $ 184.3 $ 3.8 $ 1.1 In 2018 , we estimate that we will recognize $1.5 and $6.0 of net actuarial losses from accumulated other comprehensive loss, net into net periodic cost related to our domestic pension plan and significant foreign pension plans, respectively. Domestic Pension Plan Foreign Pension Plans December 31, 2017 2016 2017 2016 Pension plans with underfunded or unfunded accumulated benefit obligation Aggregate projected benefit obligation $ 125.4 $ 126.6 $ 576.6 $ 525.3 Aggregate accumulated benefit obligation 125.4 126.6 575.2 523.8 Aggregate fair value of plan assets 98.8 95.2 389.5 352.9 |
Employee Benefits Schedule of N
Employee Benefits Schedule of Net Benefit Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic benefit cost and key assumptions are listed below. Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Years ended December 31, 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ 0.0 $ 0.0 $ 0.0 $ 4.9 $ 6.7 $ 11.1 $ 0.0 $ 0.0 $ 0.0 Interest cost 5.1 5.9 0.3 13.5 15.1 18.9 1.3 1.5 1.5 Expected return on plan assets (6.2 ) (6.6 ) (7.6 ) (17.7 ) (18.7 ) (20.6 ) 0.0 0.0 0.0 Settlement and curtailment losses (gains) 0.0 0.0 0.0 6.8 0.4 (0.2 ) 0.0 0.0 0.0 Amortization of: Prior service cost (credit) 0.0 0.0 0.0 0.1 0.1 0.1 (0.2 ) (0.2 ) (0.1 ) Net actuarial losses 1.5 1.3 6.5 5.5 4.2 4.1 0.0 0.0 0.0 Net periodic cost $ 0.4 $ 0.6 $ (0.8 ) $ 13.1 $ 7.8 $ 13.4 $ 1.1 $ 1.3 $ 1.4 Assumptions Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan Years ended December 31, 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net periodic cost Discount rate 4.20 % 4.80 % 4.15 % 2.52 % 3.61 % 3.41 % 4.05 % 4.65 % 4.00 % Rate of compensation increase N/A N/A N/A 2.36 % 3.18 % 2.99 % N/A N/A N/A Expected return on plan assets 7.00 % 7.00 % 7.00 % 4.66 % 5.38 % 5.01 % N/A N/A N/A Benefit obligation Discount rate 3.70 % 4.20 % 4.80 % 2.36 % 2.52 % 3.61 % 3.65 % 4.05 % 4.65 % Rate of compensation increase N/A N/A N/A 2.37 % 2.36 % 3.25 % N/A N/A N/A Health care cost trend rate assumed for next year Initial rate (weighted-average) 6.50 % 6.75 % 7.00 % Year ultimate rate is reached 2024 2024 2024 Ultimate rate 5.00 % 5.00 % 5.00 % |
Employee Benefits Fair Value of
Employee Benefits Fair Value of Pension Plan Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Fair Value of Pension Plan Assets [Table Text Block] | The following table presents the fair value of our domestic and foreign pension plan assets as of December 31, 2017 and 2016 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. See Note 10 for a description of the fair value hierarchy. December 31, 2017 December 31, 2016 Plan assets subject to fair value hierarchy Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Registered investment companies $ 14.7 $ 0.0 $ 0.0 $ 14.7 $ 14.4 $ 0.0 $ 0.0 $ 14.4 Limited partnerships 0.0 0.0 29.5 29.5 0.0 0.0 28.0 28.0 Fixed income securities 23.4 0.0 0.0 23.4 22.6 0.3 0.0 22.9 Insurance contracts 0.0 7.9 0.0 7.9 0.0 7.8 0.0 7.8 Other 27.7 0.0 0.0 27.7 20.1 0.0 0.0 20.1 Total plan assets, subject to leveling $ 65.8 $ 7.9 $ 29.5 $ 103.2 $ 57.1 $ 8.1 $ 28.0 $ 93.2 Plan assets measured at net asset value Other investments measured at net asset value 1 399.8 367.9 Total plan assets $ 503.0 $ 461.1 1 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy but are included to reconcile to the amounts presented in the fair value of plan assets table above. |
Employee Benefits Schedule of E
Employee Benefits Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | The following table presents additional information about our significant foreign pension plan assets for which we utilize Level 3 inputs to determine fair value. Years ended December 31, Plan assets subject to fair value hierarchy, level 3 2017 2016 Balance at beginning of period $ 28.0 $ 31.0 Actual return on plan assets 1.5 (3.0 ) Balance at end of period $ 29.5 $ 28.0 |
Employee Benefits Schedule of A
Employee Benefits Schedule of Allocation of Plan Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Allocation of Plan Assets [Table Text Block] | As of December 31, 2017 , the weighted-average target and actual asset allocations relating to our domestic and foreign pension plans' assets are listed below. December 31, Asset Class 2018 Target Allocation 2017 2016 Alternative investments 1 27 % 27 % 21 % Equity securities 23 % 23 % 23 % Fixed income securities 21 % 21 % 26 % Liability driven investments 2 14 % 14 % 14 % Real estate 6 % 6 % 6 % Other 9 % 9 % 10 % Total 100 % 100 % 100 % 1 Alternative investments have the flexibility to dynamically invest across a broad range of asset classes including bonds, equity, cash, property and commodities. 2 Liability driven investment strategies use government bonds as well as derivative instruments to hedge a portion of the impact of interest rates and inflation movements on the long-term liabilities. |
Employee Benefits Schedule of77
Employee Benefits Schedule of Estimated Future Benefit Payments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Expected Benefit Payments [Table Text Block] | The estimated future benefit payments expected to be paid are presented below. Years Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan 2018 $ 13.7 $ 22.3 $ 3.2 2019 8.5 23.8 3.0 2020 8.6 21.6 2.8 2021 8.0 22.3 2.6 2022 8.4 23.5 2.4 2023 - 2027 37.2 124.0 10.4 |
Segment Information Schedule of
Segment Information Schedule of Segment Reporting Information, by Segment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summarized financial information concerning our reportable segments is shown in the following tables. Years ended December 31, 2017 2016 2015 Revenue: IAN $ 6,397.3 $ 6,319.4 $ 6,145.4 CMG 1,485.1 1,527.2 1,468.4 Total $ 7,882.4 $ 7,846.6 $ 7,613.8 Segment operating income (loss): IAN $ 907.4 $ 898.2 $ 850.3 CMG 192.8 190.0 166.3 Corporate and other (126.6 ) (147.2 ) (141.8 ) Total 973.6 941.0 874.8 Interest expense (90.8 ) (90.6 ) (85.8 ) Interest income 19.4 20.1 22.8 Other expense, net (26.2 ) (40.3 ) (49.6 ) Income before income taxes $ 876.0 $ 830.2 $ 762.2 Depreciation and amortization of property, equipment and intangible assets: IAN $ 111.8 $ 117.7 $ 117.5 CMG 20.4 19.5 18.4 Corporate and other 24.9 23.0 21.1 Total $ 157.1 $ 160.2 $ 157.0 Capital expenditures: IAN $ 112.0 $ 149.2 $ 117.5 CMG 17.7 16.6 12.7 Corporate and other 26.2 34.9 30.9 Total $ 155.9 $ 200.7 $ 161.1 December 31, 2017 2016 Total assets: IAN $ 10,973.0 $ 10,660.0 CMG 1,422.9 1,428.3 Corporate and other 299.3 396.9 Total $ 12,695.2 $ 12,485.2 |
Segment Information Schedule 79
Segment Information Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Revenue and long-lived assets, excluding intangible assets, are presented by major geographic area in the following table. Revenue Long-Lived Assets Years ended December 31, December 31, 2017 2016 2015 2017 2016 Domestic $ 4,714.3 $ 4,684.8 $ 4,475.5 $ 705.5 $ 684.8 International: United Kingdom 681.8 695.7 687.7 56.2 52.0 Continental Europe 716.1 699.8 697.2 73.6 57.0 Asia Pacific 913.6 923.0 916.9 115.5 118.3 Latin America 355.9 372.7 383.5 48.2 49.0 Other 500.7 470.6 453.0 46.1 43.3 Total International 3,168.1 3,161.8 3,138.3 339.6 319.6 Total Consolidated $ 7,882.4 $ 7,846.6 $ 7,613.8 $ 1,045.1 $ 1,004.4 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Net Rent Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Net Rent Expense | Net rent expense is listed in the table below. Years ended December 31, 2017 2016 2015 Gross rent expense $ 371.0 $ 366.1 $ 336.5 Third-party sublease rental income (4.6 ) (4.1 ) (5.5 ) Net rent expense $ 366.4 $ 362.0 $ 331.0 |
Commitments and Contingencies81
Commitments and Contingencies Schedule of Future Minimum Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Cash amounts for future minimum lease commitments for office premises and equipment under non-cancelable leases, along with minimum sublease rental income to be received under non-cancelable subleases, are listed in the table below. Period Rent Obligations Sublease Rental Income Net Rent 2018 $ 335.0 $ (4.2 ) $ 330.8 2019 312.1 (3.8 ) 308.3 2020 285.3 (2.5 ) 282.8 2021 251.4 (1.4 ) 250.0 2022 204.1 (0.8 ) 203.3 Thereafter 727.2 (0.5 ) 726.7 Total $ 2,115.1 $ (13.2 ) $ 2,101.9 |
Commitments and Contingencies82
Commitments and Contingencies Schedule of Contingent Acquisition Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | The following table details the estimated future contingent acquisition obligations payable in cash as of December 31, 2017 . 2018 2019 2020 2021 2022 Thereafter Total Deferred acquisition payments $ 41.9 $ 27.5 $ 16.1 $ 24.4 $ 4.8 $ 6.3 $ 121.0 Redeemable noncontrolling interests and call options with affiliates 1 37.1 26.4 62.9 10.3 6.6 4.1 147.4 Total contingent acquisition payments $ 79.0 $ 53.9 $ 79.0 $ 34.7 $ 11.4 $ 10.4 $ 268.4 1 We have entered into certain acquisitions that contain both redeemable noncontrolling interests and call options with similar terms and conditions. The estimated amounts listed would be paid in the event of exercise at the earliest exercise date. We have certain redeemable noncontrolling interests that are exercisable at the discretion of the noncontrolling equity owners as of December 31, 2017 . These estimated payments of $24.8 are included within the total payments expected to be made in 2018 , and will continue to be carried forward into 2019 or beyond until exercised or expired. Redeemable noncontrolling interests are included in the table at current exercise price payable in cash, not at applicable redemption value, in accordance with the authoritative guidance for classification and measurement of redeemable securities. |
Results by Quarter (Unaudited83
Results by Quarter (Unaudited) (Tables) | 12 Months Ended | |
Dec. 31, 2017 | ||
Quarterly Financial Information Disclosure [Abstract] | ||
Schedule of Quarterly Financial Information | Results by Quarter (Unaudited) Three Months Ended March 31, Three Months Ended June 30, Three Months Ended September 30, Three Months Ended December 31, 2017 2016 2017 2016 2017 2016 2017 2016 Revenue $ 1,753.9 $ 1,742.0 $ 1,884.9 $ 1,917.9 $ 1,902.6 $ 1,922.2 $ 2,341.0 $ 2,264.5 Salaries and related expenses 1 1,275.4 1,268.8 1,239.3 1,229.5 1,227.6 1,228.0 1,325.8 1,308.8 Office and general expenses 448.8 450.2 439.1 464.1 455.9 486.2 496.9 470.0 Operating income 29.7 23.0 206.5 224.3 219.1 208.0 518.3 485.7 Other income (expense), net 1,2 0.8 (19.2 ) (15.4 ) 0.4 (9.9 ) 5.3 (1.7 ) (26.8 ) Total (expenses) and other income (14.9 ) (36.0 ) (36.4 ) (18.5 ) (26.8 ) (11.7 ) (19.5 ) (44.6 ) (Benefit of) provision for income taxes 3 (2.1 ) (15.6 ) 75.4 43.7 42.5 63.8 166.1 106.1 Net income 18.1 2.7 94.6 160.2 148.8 132.7 333.5 336.9 Net income available to IPG common stockholders $ 21.5 $ 5.4 $ 94.7 $ 156.9 $ 146.2 $ 128.6 $ 316.6 $ 317.6 Earnings per share available to IPG common stockholders: Basic $ 0.05 $ 0.01 $ 0.24 $ 0.39 $ 0.38 $ 0.32 $ 0.82 $ 0.81 Diluted $ 0.05 $ 0.01 $ 0.24 $ 0.38 $ 0.37 $ 0.32 $ 0.81 $ 0.78 Dividends declared per common share $ 0.18 $ 0.15 $ 0.18 $ 0.15 $ 0.18 $ 0.15 $ 0.18 $ 0.15 1 As part of the adoption of FASB ASU 2017-07, we have reclassified a portion of postretirement costs from salaries and related expenses to other income (expense), net. 2 The three months ended June 30 and September 30, 2017 included pre-tax net losses of $13.1 and $8.7 , respectively, on sales of businesses. The three months ended March 31 and December 31, 2016 included pre-tax net losses of $16.3 and $25.3 , respectively, on sales of businesses. 3 The three months ended September 30, 2017 included a tax benefit of $31.2 related to foreign tax credits from distributions of unremitted earnings, which was reversed during the three months ended December 31, 2017 as a result of the enactment of the Tax Cuts and Jobs Act. The three months ended December 31, 2017 included a net tax benefit of $36.0 as a result of the enactment of the Tax Cuts and Jobs Act. The three months ended March 31, 2016 included a tax benefit of $12.2 due to the reversal of valuation allowances. The three months ended June 30, 2016 included a tax benefit of $23.4 related to the conclusion and settlement of a tax examination of previous years. The three months ended December 31, 2016 included a tax benefit of $37.4 for refunds to be claimed on future amended U.S. federal returns. | [1] |
[1] | As part of the adoption of FASB ASU 2017-07, we have reclassified a portion of postretirement costs from salaries and related expenses to other income (expense), net. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
Retirement of treasury stock, amount | $ 0 | $ 0 | $ 0 |
ERP Systems, Useful Life | 10 | ||
Selling, general and administrative expense | $ 118.6 | 138.8 | |
Depreciation and amortization | $ 157.1 | 160.2 | 157 |
Leasehold Improvements, Useful Life | the shorter of the useful life or the remaining lease term | ||
Number of Reporting Units for Purposes of Annual Goodwill Impairment Test | 11 | ||
Foreign Currency Transaction pre-tax Gain (Loss) | $ 1.9 | $ 2.1 | $ 2 |
Minimum | |||
Furniture and Equipment, Useful Life | 3 years | ||
Buildings, Useful Life | 10 years | ||
Other Internal Use Software, Useful Life | 3 | ||
Finite-Lived Intangible Assets, Useful Life | 7 years | ||
Maximum | |||
Furniture and Equipment, Useful Life | 7 years | ||
Buildings, Useful Life | 35 years | ||
Other Internal Use Software, Useful Life | 7 | ||
Finite-Lived Intangible Assets, Useful Life | 15 years | ||
Common Stock [Member] | |||
Retirement of treasury stock, shares | shares | (13.4) | (13.7) | (11.3) |
Retirement of treasury stock, amount | $ (1.3) | $ (1.4) | $ (1.2) |
Treasury Stock [Member] | |||
Retirement of treasury stock, amount | 304.4 | 311 | 233.2 |
Additional Paid-in Capital [Member] | |||
Retirement of treasury stock, amount | $ (303.1) | $ (309.6) | $ (232) |
Debt and Credit Agreements Long
Debt and Credit Agreements Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,287.6 | $ 1,604.6 | |
Long-term debt, current maturities | 2 | 323.9 | |
Long-term debt, excluding current maturities | 1,285.6 | 1,280.7 | |
Deb instrument, unamortized debt issuance costs | 13 | 12.3 | |
Long-term debt, fair value | 1,342.6 | ||
2.25% Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 300 | ||
Long-term debt, gross | 0 | 299.4 | |
Debt instrument, unamortized discount | 0 | ||
Deb instrument, unamortized debt issuance costs | 0 | ||
Long-term debt, fair value | [1] | $ 0 | 301.4 |
Debt instrument, maturity date | Nov. 15, 2017 | ||
Interest rate, stated percentage | 2.25% | ||
Debt instrument, interest rate, effective percentage | 2.30% | ||
Total cash paid to redeem 2.25% Note | $ 303.4 | ||
Accrued and unpaid interest | 3.4 | ||
4.00% Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 250 | ||
Long-term debt, gross | 247.6 | 247 | |
Debt instrument, unamortized discount | 1.3 | ||
Deb instrument, unamortized debt issuance costs | 1.1 | ||
Long-term debt, fair value | [1] | $ 259 | 258.4 |
Debt instrument, maturity date | Mar. 15, 2022 | ||
Interest rate, stated percentage | 4.00% | ||
Debt instrument, interest rate, effective percentage | 4.13% | ||
3.75% Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500 | ||
Long-term debt, gross | 497.1 | 496.6 | |
Debt instrument, unamortized discount | 0.8 | ||
Deb instrument, unamortized debt issuance costs | 2.1 | ||
Long-term debt, fair value | [1] | $ 513.2 | 503.3 |
Debt instrument, maturity date | Feb. 15, 2023 | ||
Interest rate, stated percentage | 3.75% | ||
Debt instrument, interest rate, effective percentage | 4.32% | ||
4.20% Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500 | ||
Long-term debt, gross | 496.7 | 496.2 | |
Debt instrument, unamortized discount | 0.7 | ||
Deb instrument, unamortized debt issuance costs | 2.6 | ||
Long-term debt, fair value | [1] | $ 524.2 | 511.6 |
Debt instrument, maturity date | Apr. 15, 2024 | ||
Interest rate, stated percentage | 4.20% | ||
Debt instrument, interest rate, effective percentage | 4.24% | ||
Notes Payable, Other Payables [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 46.2 | 65.4 | |
Long-term debt, fair value | [1] | $ 46.2 | $ 65.4 |
[1] | See Note 10 for information on the fair value measurement of our long-term debt. |
Debt and Credit Agreements Annu
Debt and Credit Agreements Annual Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Long-term debt, maturities, repayments of principal in next twelve months | $ 2 | |
Long-term debt, maturities, repayments of principal in year two | 3.1 | |
Long-term debt, maturities,repayments of principal in year three | 1 | |
Long-term debt, maturities, repayments of principal in year four | 0 | |
Long-term debt, maturities, repayments of principal in year five | 247.6 | |
Long-term debt, maturities, repayments of principal after year five | 1,033.9 | |
Total long-term debt | $ 1,287.6 | $ 1,604.6 |
Debt and Credit Agreements Cred
Debt and Credit Agreements Credit Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | ||
Line of Credit Facility [Line Items] | ||||
Margin for base rate advances | 0.10% | |||
Margin for Eurocurrency rate advances | 1.10% | |||
Annual rate for fronting fees accrued on letters of credit | 0.25% | |||
Annual facility fee | 0.15% | |||
Interest coverage ratio minimum | [1] | 5.00x | ||
Leverage ratio maximum | [2] | 3.50x | ||
Committed credit facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,500 | $ 1,000 | ||
Line of credit facility, available capacity increase amount | $ 250 | |||
Line of credit facility, expiration date | Oct. 25, 2022 | |||
Limits on letters of credit | $ 50 | |||
Line of credit facility, amount outstanding | 0 | |||
Letters of credit, amount outstanding | 8.4 | $ 4.9 | ||
Line of credit facility, remaining borrowing capacity | 1,491.6 | 995.1 | ||
Uncommitted credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, amount outstanding | 84.9 | 85.7 | ||
Line of credit facility, current borrowing capacity | 926.2 | 856.6 | ||
Line of credit facility, average outstanding amount | $ 223.8 | $ 216 | ||
Line of credit facility, weighted average interest rate, over time | 2.90% | |||
[1] | The interest coverage ratio is defined as EBITDA, as defined in the Credit Agreement, to net interest expense for the four quarters then ended. | |||
[2] | The leverage ratio is defined as debt as of the last day of such fiscal quarter to EBITDA, as defined in the Credit Agreement, for the four quarters then ended. The leverage ratio may be changed to not more than 4.00 to 1 at our election for four consecutive fiscal quarters, beginning with the fiscal quarter in which there is an occurrence of one or more acquisitions with an aggregate purchase price of at least $200.0. |
Debt and Credit Agreements Comm
Debt and Credit Agreements Commercial Paper (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2017 | |
Debt Disclosure [Abstract] | ||
Commercial paper, current borrowing capacity | $ 1,500 | $ 1,000 |
Commercial paper, amount outstanding | 0 | |
Commercial paper, average outstanding amount | $ 477.4 | |
Commercial paper, weighted average interest rate, over time | 1.50% | |
Commercial paper, weighted-average maturity days outstanding, over time | 17 |
Debt and Credit Agreements Cash
Debt and Credit Agreements Cash Pooling (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Cash debt pooling arrangements, amount netted | $ 1,412 | $ 1,300.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income available to IPG common stockholders | $ 579 | $ 608.5 | $ 454.6 | ||||||||
Weighted-average number of common shares outstanding - basic | 389.6 | 397.9 | 408.1 | ||||||||
Restricted stock, stock options and other equity awards | 7.7 | 10.1 | 7.6 | ||||||||
Weighted-average number of common shares outstanding - diluted | 397.3 | 408 | 415.7 | ||||||||
Basic | $ 0.82 | $ 0.38 | $ 0.24 | $ 0.05 | $ 0.81 | $ 0.32 | $ 0.39 | $ 0.01 | $ 1.49 | $ 1.53 | $ 1.11 |
Diluted | $ 0.81 | $ 0.37 | $ 0.24 | $ 0.05 | $ 0.78 | $ 0.32 | $ 0.38 | $ 0.01 | $ 1.46 | $ 1.49 | $ 1.09 |
Acquisitions Narrative (Details
Acquisitions Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill and intangible assets related to acquisitions | $ 62 | $ 149 | $ 61 |
Number of businesses acquired | 10 | 10 | 5 |
IAN | |||
Number of businesses acquired | 8 | 3 | 4 |
CMG | |||
Number of businesses acquired | 2 | 7 | 1 |
Acquisitions Cash Paid for Acqu
Acquisitions Cash Paid for Acquisitions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash Paid for Acquisitions [Abstract] | ||||
Cost of investment: current-year acquisitions | $ 36.8 | $ 65.7 | $ 37.8 | |
Cost of investment: prior-year acquisitions | 54.6 | 40.7 | 53.1 | |
Less: net cash acquired | (7.1) | (13.6) | (9.2) | |
Total cost of investment | 84.3 | 92.8 | 81.7 | |
Operating payments | [1] | 47.1 | 19.1 | 18.4 |
Total cash paid for acquisitions | [2] | 131.4 | 111.9 | 100.1 |
Acquisitions, net of cash acquired, investing cash flows | 30.6 | 52 | 28.6 | |
Payments for previous acquisition, financing cash flows | $ 53.7 | $ 40.8 | $ 53.1 | |
[1] | Represents cash payments for amounts that have been recognized in operating expenses since the date of acquisition either relating to adjustments to estimates in excess of the initial value of contingent payments recorded or were contingent upon the future employment of the former owners of the acquired companies. Amounts are reflected in the operating section of the Consolidated Statements of Cash Flows. | |||
[2] | Of the total cash paid for acquisitions, $30.6, $52.0 and $28.6 for the years ended December 31, 2017, 2016 and 2015, respectively, are classified under the investing section of the Consolidated Statements of Cash Flows as acquisitions, net of cash acquired. These amounts relate to initial payments for new transactions. Of the total cash paid for acquisitions, $53.7, $40.8 and $53.1 for the years ended December 31, 2017, 2016 and 2015, respectively, are classified under the financing section of the Consolidated Statements of Cash Flows as acquisition-related payments. These amounts relate to deferred payments and increases in our ownership interest for prior acquisitions. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Redeemable Noncontrolling Interests | |||
Balance at beginning of period | $ 252.8 | $ 251.9 | $ 257.4 |
Change in related noncontrolling interest balance | (2.8) | 4.9 | 0.8 |
Changes in redemption value of redeemable noncontrolling interests: | |||
Additions | 7.7 | 6.8 | 16.5 |
Redemptions and other | (18.5) | (14.8) | (25.1) |
Redemption value adjustments | 12.9 | 4 | 2.3 |
Balance at end of period | $ 252.1 | $ 252.8 | $ 251.9 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts - Allowance for Uncollectible Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 55.7 | $ 54.2 | $ 59.5 |
Charges to costs and expenses | 9.5 | 16.7 | 11.4 |
Deductions: | |||
Dispositions | (1) | (2.5) | (2.8) |
Uncollectible accounts written off | (25.5) | (9.4) | (9.8) |
Foreign currency translation adjustment | 4 | (3.3) | (4.1) |
Balance at end of period | $ 42.7 | $ 55.7 | $ 54.2 |
Supplementary Data Property a95
Supplementary Data Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Furniture and equipment | $ 634.8 | $ 604.2 | |
Leasehold improvements | 641.5 | 599.8 | |
Internal-use computer software | 331.3 | 306.5 | |
Land and buildings | 79 | 73.1 | |
Total property and equipment, gross | 1,686.6 | 1,583.6 | |
Less: accumulated depreciation | (1,036.2) | (961.6) | |
Total property and equipment, net | 650.4 | 622 | |
Depreciation and amortization expense for property and equipment | $ 135.9 | $ 138.3 | $ 130.9 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities [Abstract] | ||
Salaries, benefits and related expenses | $ 441.7 | $ 499 |
Office and related expenses | 53.2 | 46.7 |
Acquisition obligations | 42 | 77.5 |
Interest | 16.4 | 17.3 |
Other | 121.4 | 153.5 |
Total accrued liabilities | $ 674.7 | $ 794 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | [1],[2] | Sep. 30, 2017 | [1],[2] | Jun. 30, 2017 | [1],[2] | Mar. 31, 2017 | [1],[2] | Dec. 31, 2016 | [1],[2] | Sep. 30, 2016 | [1],[2] | Jun. 30, 2016 | [1],[2] | Mar. 31, 2016 | [1],[2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||
Net losses on sales of businesses | $ (24.1) | $ (41.4) | $ (50) | ||||||||||||||||
Other | (2.1) | 1.1 | 0.4 | ||||||||||||||||
Total other expense, net | $ (1.7) | $ (9.9) | $ (15.4) | $ 0.8 | $ (26.8) | $ 5.3 | $ 0.4 | $ (19.2) | $ (26.2) | $ (40.3) | $ (49.6) | ||||||||
[1] | As part of the adoption of FASB ASU 2017-07, we have reclassified a portion of postretirement costs from salaries and related expenses to other income (expense), net. | ||||||||||||||||||
[2] | The three months ended June 30 and September 30, 2017 included pre-tax net losses of $13.1 and $8.7, respectively, on sales of businesses. The three months ended March 31 and December 31, 2016 included pre-tax net losses of $16.3 and $25.3, respectively, on sales of businesses. |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of shares repurchased | 13.7 | 13.3 | 13.6 |
Aggregate cost, including fees | $ 300.1 | $ 303.3 | $ 285.2 |
Average price per share, including fees | $ 21.97 | $ 22.76 | $ 20.97 |
2017 Share Repurchase Program | |||
Share repurchase program, initial authorized amount | $ 300 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 155.5 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Supplemental Cash Flow Information [Abstract] | ||||
Cash paid for interest | $ 82.3 | $ 78.8 | $ 74.5 | |
Cash paid for income taxes, net of refunds | [1] | 228.4 | 244.1 | 231.9 |
Tax refunds | $ 31.9 | $ 26.6 | $ 13 | |
[1] | Refunds of $31.9, $26.6 and $13.0 were received for the years ended December 31, 2017, 2016 and 2015, respectively. |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Goodwill | |||||
Goodwill | $ 3,820.4 | $ 3,674.4 | $ 3,608.5 | [1] | |
Current year acquisitions | 55.1 | 122 | |||
Foreign currency and other | 90.9 | (56.1) | |||
IAN | |||||
Goodwill | |||||
Goodwill | [1] | 3,161.8 | 3,043.8 | 3,051.4 | |
Current year acquisitions | 39.6 | 32.7 | |||
Foreign currency and other | 78.4 | (40.3) | |||
CMG | |||||
Goodwill | |||||
Goodwill | [1] | 658.6 | 630.6 | $ 557.1 | |
Current year acquisitions | 15.5 | 89.3 | |||
Foreign currency and other | $ 12.5 | $ (15.8) | |||
[1] | For all periods presented, no goodwill impairment charge has been recorded. |
Other Intangible Assets (Detail
Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Future amortization expense 2018 | $ 23.3 | ||
Future amortization expense 2019 | 22.1 | ||
Future amortization expense 2020 | 20.4 | ||
Future amortization expense 2021 | 19.3 | ||
Future amortization expense 2022 | 16.4 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | 21.2 | $ 21.9 | $ 26.1 |
Acquired finite-lived intangible assets related to acquisitions | 7 | 29 | |
Gross Amount | 350.5 | 332.2 | |
Accumulated Amortization | (209.8) | (184.1) | |
Net Amount | 140.7 | 148.1 | |
Customer lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 267.3 | 252.4 | |
Accumulated Amortization | (172.2) | (151.4) | |
Net Amount | 95.1 | 101 | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 68.8 | 65.5 | |
Accumulated Amortization | (33.8) | (28.9) | |
Net Amount | 35 | 36.6 | |
Other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 14.4 | 14.3 | |
Accumulated Amortization | (3.8) | (3.8) | |
Net Amount | $ 10.6 | $ 10.5 | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 7 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 15 years |
Income Taxes The 2017 U.S. Tax
Income Taxes The 2017 U.S. Tax Cuts and Jobs Act (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Foreign tax credits | $ 31.2 | |
Provisional deferred income tax benefit due to the Tax Act | $ 104.7 | |
Provisional tax effect of this deemed repatriation of unremitted foreign earnings | $ 62.3 |
Components of Income Before Inc
Components of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, Domestic | $ 528.2 | $ 504.7 | $ 461 |
Income before income taxes, Foreign | 347.8 | 325.5 | 301.2 |
Income before income taxes | $ 876 | $ 830.2 | $ 762.2 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. federal income taxes (including foreign withholding taxes): | |||||||||||||||||||
Current federal income taxes | $ 154.1 | $ 54.3 | $ 117.8 | ||||||||||||||||
Deferred federal income taxes | (32.2) | 36.6 | 46.9 | ||||||||||||||||
Total federal income taxes | 121.9 | 90.9 | 164.7 | ||||||||||||||||
State and local income taxes: | |||||||||||||||||||
Current state and local income taxes | 18.8 | 8.2 | 15.1 | ||||||||||||||||
Deferred state and local income taxes | 20.4 | (1.5) | 13 | ||||||||||||||||
Total state and local income taxes | 39.2 | 6.7 | 28.1 | ||||||||||||||||
Foreign income taxes: | |||||||||||||||||||
Current foreign income taxes | 107.9 | 89.8 | 100.4 | ||||||||||||||||
Deferred foreign income taxes | 12.9 | 10.6 | (10.4) | ||||||||||||||||
Total foreign income taxes | 120.8 | 100.4 | 90 | ||||||||||||||||
Total provision for income taxes | $ 166.1 | $ 42.5 | $ 75.4 | $ (2.1) | $ 106.1 | $ 63.8 | $ 43.7 | $ (15.6) | $ 281.9 | $ 198 | $ 282.8 | ||||||||
[1] | The three months ended September 30, 2017 included a tax benefit of $31.2 related to foreign tax credits from distributions of unremitted earnings, which was reversed during the three months ended December 31, 2017 as a result of the enactment of the Tax Cuts and Jobs Act. The three months ended December 31, 2017 included a net tax benefit of $36.0 as a result of the enactment of the Tax Cuts and Jobs Act. The three months ended March 31, 2016 included a tax benefit of $12.2 due to the reversal of valuation allowances. The three months ended June 30, 2016 included a tax benefit of $23.4 related to the conclusion and settlement of a tax examination of previous years. The three months ended December 31, 2016 included a tax benefit of $37.4 for refunds to be claimed on future amended U.S. federal returns. |
Reconciliation of Effective Inc
Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2017 | [2] | Sep. 30, 2017 | [2] | Jun. 30, 2017 | [2] | Mar. 31, 2017 | [2] | Dec. 31, 2016 | [2] | Sep. 30, 2016 | [2] | Jun. 30, 2016 | [2] | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Valuation Allowance [Line Items] | ||||||||||||||||||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |||||||||||||||||
Income tax provision at U.S. federal statutory rate | $ 306.6 | $ 290.6 | $ 266.8 | |||||||||||||||||
State and local income taxes, net of federal income tax benefit | 23.5 | 4.3 | 18.3 | |||||||||||||||||
Impact of foreign operations, including withholding taxes | (6.7) | (23.9) | 14.7 | |||||||||||||||||
Change in net valuation allowance | [1] | 1.4 | (13.4) | (20.6) | ||||||||||||||||
Divestitures | 1.1 | 9.7 | 11.9 | |||||||||||||||||
U.S. federal tax credits | (1.7) | (44.6) | 0 | |||||||||||||||||
Stock Compensation | (15.3) | (9) | 0 | |||||||||||||||||
Increase (decrease) in unrecognized tax benefits | 7 | (22.2) | (6.5) | |||||||||||||||||
Net impact of the Tax Act | (36) | 0 | 0 | |||||||||||||||||
Statutory tax rate changes | 0 | 11.4 | 1.4 | |||||||||||||||||
Other | 2 | (4.9) | (3.2) | |||||||||||||||||
Total provision for income taxes | $ 166.1 | $ 42.5 | $ 75.4 | $ (2.1) | $ 106.1 | $ 63.8 | $ 43.7 | $ (15.6) | $ 281.9 | $ 198 | $ 282.8 | |||||||||
Effective income tax rate on operations | 32.20% | 23.80% | 37.10% | |||||||||||||||||
[1] | Reflects changes in valuation allowances that impacted the effective income tax rate for each year presented. | |||||||||||||||||||
[2] | The three months ended September 30, 2017 included a tax benefit of $31.2 related to foreign tax credits from distributions of unremitted earnings, which was reversed during the three months ended December 31, 2017 as a result of the enactment of the Tax Cuts and Jobs Act. The three months ended December 31, 2017 included a net tax benefit of $36.0 as a result of the enactment of the Tax Cuts and Jobs Act. The three months ended March 31, 2016 included a tax benefit of $12.2 due to the reversal of valuation allowances. The three months ended June 30, 2016 included a tax benefit of $23.4 related to the conclusion and settlement of a tax examination of previous years. The three months ended December 31, 2016 included a tax benefit of $37.4 for refunds to be claimed on future amended U.S. federal returns. |
Income Taxes Primary Impact on
Income Taxes Primary Impact on Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Net impact of the Tax Act | $ 36 | $ 0 | $ 0 |
Tax credits | $ 1.7 | 44.6 | $ 0 |
Previously unrecognized tax benefits | 23.4 | ||
Reversal of valuation allowance | $ 12.2 |
Components of Deferred Tax Asse
Components of Deferred Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets, Net [Abstract] | ||||
Postretirement/post-employment benefits | $ 19.5 | $ 23.1 | ||
Deferred compensation | 91.7 | 192.4 | ||
Pension costs | 27.6 | 36.6 | ||
Basis differences in fixed assets | (52) | (80.2) | ||
Rent | 27.5 | 41.7 | ||
Interest | 45.8 | 58.9 | ||
Accruals and reserves | 18.4 | 17.2 | ||
Allowance for doubtful accounts | 10.2 | 13.3 | ||
Basis differences in intangible assets | (281.3) | (405) | ||
Investments in equity securities | (3.3) | (6.3) | ||
Tax loss/tax credit carry forwards | 357.9 | 354.6 | ||
Prepaid expenses | (1.7) | (2.9) | ||
Deferred revenue | (38.2) | (32) | ||
Other | 44.7 | 44.3 | ||
Total deferred tax assets, net | 266.8 | 255.7 | ||
Valuation allowance | (243.3) | (255.6) | $ (275.1) | $ (332.2) |
Net deferred tax assets | $ 23.5 | $ 0.1 |
Income Taxes Change in Valuatio
Income Taxes Change in Valuation Allowances (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Summary of Valuation Allowances | ||||
Beginning balance | $ 255.6 | $ 275.1 | $ 332.2 | |
Reversed to costs and expenses | (4.6) | (15.4) | (20.8) | |
(Reversed) charged to gross tax assets and other accounts 1 | [1] | (27) | 9.5 | (9.2) |
Foreign currency translation | 19.3 | (13.6) | (27.1) | |
Ending balance | 243.3 | 255.6 | $ 275.1 | |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards | 1,186.8 | |||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 2,774.8 | $ 2,622.4 | ||
Foreign Tax Authority | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 656.6 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 530.2 | |||
State and Local Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 45 | |||
Minimum | Foreign Tax Authority | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2018 | |||
Minimum | State and Local Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2018 | |||
Maximum | Foreign Tax Authority | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2037 | |||
Maximum | State and Local Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2037 | |||
[1] | Primarily represents changes to the valuation allowance related to the change of a corresponding deferred tax asset. |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | |||
Balance at beginning of period | $ 246.7 | $ 226.9 | $ 238 |
Increases as a result of tax positions taken during a prior year | 6.3 | 65 | 5.2 |
Decreases as a result of tax positions taken during a prior year | (8.1) | (47.5) | (19.7) |
Settlements with taxing authorities | (0.8) | (4.6) | (4.1) |
Lapse of statutes of limitation | (3.3) | (11.8) | (3.8) |
Increases as a result of tax positions taken during the current year | 31.1 | 18.7 | 11.3 |
Balance at end of period | 271.9 | 246.7 | $ 226.9 |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | 249.2 | ||
Income tax penalties and interest accrued | 27.9 | 20.9 | |
Income tax penalties and interest expense | 7 | $ 0.7 | |
Minimum [Member] | |||
Income Tax Contingency [Line Items] | |||
Anticipated decrease in unrecognized tax benefits | 28 | ||
Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
Anticipated decrease in unrecognized tax benefits | $ 38 |
Accumulated Other Comprehens110
Accumulated Other Comprehensive Loss, Net of Tax Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Available-for-sale securities, before reclassifications | $ 0 | $ 0.5 | $ 0.5 |
Total other comprehensive income, before reclassifications | 121 | (125) | |
Total reclassification from AOCI | 14.1 | 8.1 | 31.5 |
Accumulated Other Comprehensive Income (Loss), net of tax | (827.4) | (962.5) | (845.6) |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign currency translation adjustment, before reclassifications | 130.7 | (54.8) | |
Foreign currency translation adjustment, amount reclassified from AOCI, net of tax | 1.1 | 3.7 | |
Foreign currency translation adjustment, net of tax | (584.9) | (716.7) | (665.6) |
Available-for-sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Available-for-sale securities, before reclassifications | 0 | 0.5 | |
Available-for-sale securities, amount reclassified from AOCI, net of tax | (0.6) | (1.2) | |
Available-for-sale securities adjustment, net of tax | 0 | 0.6 | 1.3 |
Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Derivative instruments, before reclassifications | 0 | 0 | |
Derivative instruments, amount reclassified from AOCI, net of tax | 1.6 | 1.2 | |
Derivative Instruments, net of tax | (6.8) | (8.4) | (9.6) |
Defined Benefit and Postretirement Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Defined Benefit and Postretirement Plans, before reclassifications | (9.7) | (70.7) | |
Defined benefit and Postretirement Plans, amount reclassified from AOCI, net of tax | 12 | 4.4 | |
Pension and Other Postretirement Benefit Plans, net of tax | $ (235.7) | $ (238) | $ (171.7) |
Accumulated Other Comprehens111
Accumulated Other Comprehensive Loss, Net of Tax Reclassifications from AOCI, net of tax (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total income tax effect | $ (2.1) | $ (2.1) | $ (4.2) | |
Total reclassified from AOCI, net of tax | 14.1 | 8.1 | 31.5 | |
Foreign Currency Translation Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, before tax | [1] | 1.1 | 3.7 | 23.3 |
Available-for-sale Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, before tax | (0.7) | (1.3) | 0 | |
Derivative Instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, before tax | 2.1 | 2 | 2 | |
Defined Benefit and Postretirement Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, before tax | $ 13.7 | $ 5.8 | $ 10.4 | |
[1] | These foreign currency translation adjustments are primarily a result of the sales of businesses. |
Plan Information (Details)
Plan Information (Details) shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)shares | |
Incentive compensation plan initiation year | 2,014 |
Number of shares initially available for grant | 28.8 |
Maximum shares participants are eligible to receive | 2 |
Maximum cash award per employee | $ | $ 10 |
Number of years stock options expire from grant date | 10 years |
Vesting period in which the fair value of shares on grant date is amortized over, years | 3 years |
Minimum [Member] | |
Stock options exercisable period | 2 years |
Maximum [Member] | |
Stock options exercisable period | 4 years |
Stock Based Compensation Expens
Stock Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Stock-based Payment Award | ||||
Stock-based compensation expense | $ 84.5 | $ 88 | $ 72.6 | |
Tax benefit | 30.4 | 32.1 | 26.3 | |
Employee Stock Option | ||||
Stock-based Payment Award | ||||
Stock-based compensation expense | 0 | 0.2 | 1 | |
Stock-settled awards | ||||
Stock-based Payment Award | ||||
Stock-based compensation expense | 20.5 | 16 | 11.6 | |
Cash-settled awards | ||||
Stock-based Payment Award | ||||
Stock-based compensation expense | 1 | 0.9 | 0.7 | |
Performance-based awards | ||||
Stock-based Payment Award | ||||
Stock-based compensation expense | 61.5 | 69.4 | 57.7 | |
Employee stock purchase plan | ||||
Stock-based Payment Award | ||||
Stock-based compensation expense | 1 | 0.7 | 0.7 | |
Other | ||||
Stock-based Payment Award | ||||
Stock-based compensation expense | [1] | $ 0.5 | $ 0.8 | $ 0.9 |
[1] | Represents charges recorded for severance expense related to stock-based compensation awards. |
Incentive Compensation Plans114
Incentive Compensation Plans Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-based Payment Award | |||
Intrinsic value of stock options exercised | $ 15.1 | $ 15.2 | $ 16.1 |
Proceeds from stock options exercised including taxes withheld | $ 20 | $ 18.2 | $ 20.4 |
Employee Stock Option | |||
Stock-based Payment Award | |||
Stock options outstanding as of January 1, 2017 | 4.8 | ||
Stock options outstanding as of Jan 1, 2017, Weighted-average exercise price | $ 9.83 | ||
Exercised | (1.1) | (1.2) | (1.4) |
Exercised, weighted-average exercise price | $ 11.15 | ||
Stock options outstanding as of December 31, 2017 | 3.7 | 4.8 | |
Stock options outstanding as of Dec 31, 2017, Weighted-average exercise price | $ 9.44 | $ 9.83 | |
Options outstanding, weighted average remaining contractual term | 2 years 7 months | ||
Stock options outstanding, aggregate intrinsic value | $ 39.2 |
Share-based Compensation Awards
Share-based Compensation Awards (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-settled awards | |||
Stock-based Payment Award | |||
Awards granted | 0.8 | 1.1 | 0.8 |
Weighted-average grant-date fair value (per award) | $ 24.18 | $ 21.87 | $ 22.07 |
Total fair value of vested awards distributed | $ 22.6 | $ 17.5 | $ 18.8 |
Accrued dividends on non-vested stock-settled awards | 1.5 | 1.3 | |
Dividends paid for stock-settled awards | $ 1.2 | $ 0.6 | |
Cash-settled awards | |||
Stock-based Payment Award | |||
Awards granted | 0 | 0.1 | 0.1 |
Weighted-average grant-date fair value (per award) | $ 23.33 | $ 22.54 | $ 20.46 |
Total fair value of vested awards distributed | $ 0.9 | $ 0.7 | $ 0.2 |
Performance-based awards | |||
Stock-based Payment Award | |||
Awards granted | 4.8 | 3.3 | 2.9 |
Weighted-average grant-date fair value (per award) | $ 20.06 | $ 19.58 | $ 20.88 |
Total fair value of vested awards distributed | $ 112.4 | $ 27.9 | $ 18.7 |
Non-vested Award Activity (Deta
Non-vested Award Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-settled awards | |||
Stock-based Payment Award | |||
Non-vested as of January 1, 2017 | 2.3 | ||
Nonvested as of January 1, 2017, weighted-average grant date fair value | $ 20.84 | ||
Granted | 0.8 | ||
Granted, Weighted-average grant-date fair value | $ 24.18 | $ 21.87 | $ 22.07 |
Vested | (1) | ||
Vested, Weighted-average grant date fair value | $ 19.49 | ||
Forfeited | 0 | ||
Forfeited, Weighted-average grant date fair value | $ 21.86 | ||
Non-vested as of December 31, 2017 | 2.1 | 2.3 | |
Nonvested as of December 31, 2017, weighted-average grant date fair value | $ 22.78 | $ 20.84 | |
Total unrecognized compensation expense remaining | $ 24.1 | ||
Weighted-average years expected to be recognized over | 1 year | ||
Cash-settled awards | |||
Stock-based Payment Award | |||
Non-vested as of January 1, 2017 | 0.1 | ||
Nonvested as of January 1, 2017, weighted-average grant date fair value | $ 20.49 | ||
Granted | 0 | ||
Granted, Weighted-average grant-date fair value | $ 23.33 | $ 22.54 | $ 20.46 |
Vested | 0 | ||
Vested, Weighted-average grant date fair value | $ 19.27 | ||
Forfeited | 0 | ||
Forfeited, Weighted-average grant date fair value | $ 20.50 | ||
Non-vested as of December 31, 2017 | 0.1 | 0.1 | |
Nonvested as of December 31, 2017, weighted-average grant date fair value | $ 22.52 | $ 20.49 | |
Total unrecognized compensation expense remaining | $ 1 | ||
Weighted-average years expected to be recognized over | 1 year | ||
Cash awards granted during the period target value | $ 2.8 | $ 5.2 | $ 1.3 |
Incentive compensation expense, non share-based | $ 2.5 | $ 3.1 | $ 3 |
Performance-based awards | |||
Stock-based Payment Award | |||
Non-vested as of January 1, 2017 | 8.5 | ||
Nonvested as of January 1, 2017, weighted-average grant date fair value | $ 19.16 | ||
Granted | 4.8 | ||
Granted, Weighted-average grant-date fair value | $ 20.06 | $ 19.58 | $ 20.88 |
Vested | (4.6) | ||
Vested, Weighted-average grant date fair value | $ 16.64 | ||
Forfeited | (0.4) | ||
Forfeited, Weighted-average grant date fair value | $ 20 | ||
Non-vested as of December 31, 2017 | 8.3 | 8.5 | |
Nonvested as of December 31, 2017, weighted-average grant date fair value | $ 21.05 | $ 19.16 | |
Total unrecognized compensation expense remaining | $ 71.9 | ||
Weighted-average years expected to be recognized over | 1 year 8 months | ||
Cash awards granted during the period target value | $ 38.4 | $ 37.4 | $ 31.8 |
Incentive compensation expense, non share-based | $ 35.3 | $ 39.8 | $ 35.8 |
Incentive Compensation Plans Em
Incentive Compensation Plans Employee Stock Purchase Plans (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | ||
Maximum employee subscription rate | 10.00% | |
Maximum number of shares per employee | 900 | |
Employee stock purchase plan description | 90% of the lesser of the average market price of a share on the first business day of the offering period or the average market price of a share on the last business day of the offering period of three months | |
Employee Stock Purchase Plan, stock issued, shares | 500,000 | 3,000,000 |
Employee Stock Purchase Plan, stock reserved for issuance, shares | 10,000,000 |
Fair Value on a Recurring Basis
Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair value assets and liabilities measured on recurring basis | |||
Cash equivalents | $ 201.6 | $ 440.8 | |
Contingent acquisition obligations | [1] | 147 | 205.4 |
Contingent acquisition obligation, total change | (58.4) | ||
Contingent acquisition obligation, payments | (105.3) | ||
Contingent acquisition obligation, additions | 40.8 | ||
Level 1 | |||
Fair value assets and liabilities measured on recurring basis | |||
Cash equivalents | 201.6 | 440.8 | |
Contingent acquisition obligations | [1] | 0 | 0 |
Level 2 | |||
Fair value assets and liabilities measured on recurring basis | |||
Cash equivalents | 0 | 0 | |
Contingent acquisition obligations | [1] | 0 | 0 |
Level 3 | |||
Fair value assets and liabilities measured on recurring basis | |||
Cash equivalents | 0 | 0 | |
Contingent acquisition obligations | [1] | $ 147 | $ 205.4 |
[1] | Contingent acquisition obligations includes deferred acquisition payments and unconditional obligations to purchase additional noncontrolling equity shares of consolidated subsidiaries. Fair value measurement of the obligations is based upon actual and projected operating performance targets as specified in the related agreements. The decrease in this balance of $58.4 from December 31, 2016 to December 31, 2017 is primarily due to payments of $105.3, partially offset by acquisitions and exercised put options of $40.8. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities. |
Fair Value on a Nonrecurring Ba
Fair Value on a Nonrecurring Basis (Details) $ in Millions | Dec. 31, 2017USD ($) |
Fair value assets and liabilities measured on nonrecurring basis | |
Long-term debt, fair value | $ 1,342.6 |
Level 1 | |
Fair value assets and liabilities measured on nonrecurring basis | |
Long-term debt, fair value | 0 |
Level 2 | |
Fair value assets and liabilities measured on nonrecurring basis | |
Long-term debt, fair value | 1,296.4 |
Level 3 | |
Fair value assets and liabilities measured on nonrecurring basis | |
Long-term debt, fair value | $ 46.2 |
Employee Benefits (Details)
Employee Benefits (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Retirement Benefits, Description [Abstract] | |||
Number of participants domestic pension plan | 3,500 | ||
Number of participants postretirement benefit plan | 1,700 | ||
Deferred Compensation Arrangements [Abstract] | |||
Deferred compensation liability | $ 96.2 | $ 92.4 | |
Deferred compensation expense | 11.2 | 9.7 | $ 6.3 |
Deferred benefit liability | 117 | 129.1 | |
Deferred benefit expense | 7.3 | 8.8 | $ 9.7 |
Cash surrender value of life insurance | 177.4 | 171.5 | |
Deferred compensation plan assets | 15.9 | 12.9 | |
Long-Term Disability Plan [Abstract] | |||
Long-term disability plan obligation | 8.4 | $ 8.2 | |
Long term disability plan, income replacement benefit obligation | $ 0 |
Pension and Postretirement Bene
Pension and Postretirement Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets (Period Start) | $ 461.1 | ||
Fair Value of Plan Assets (Period End) | 503 | $ 461.1 | |
Domestic Plan [Member] | |||
Benefit Obligation [Roll Forward] | |||
Benefit obligation (period start) | 126.6 | 126.9 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 5.1 | 5.9 | 0.3 |
Benefits Paid | (11.4) | (13.6) | |
Plan participant contributions | 0 | 0 | |
Actuarial losses (gains) | 5.1 | 7.4 | |
Settlements and curtailments | 0 | 0 | |
Foreign currency effect | 0 | 0 | |
Other | 0 | 0 | |
Benefit Obligation (Period End) | 125.4 | 126.6 | 126.9 |
Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets (Period Start) | 95.2 | 101.1 | |
Actual return on plan assets | 12.4 | 7.7 | |
Employer contributions | 2.6 | 0 | |
Plan participant contributions | 0 | 0 | |
Benefits paid | (11.4) | (13.6) | |
Settlements | 0 | 0 | |
Foreign currency effect | 0 | 0 | |
Other | 0 | 0 | |
Fair Value of Plan Assets (Period End) | 98.8 | 95.2 | 101.1 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (26.6) | (31.4) | |
Amounts Recognized in Consolidated Balance Sheets | |||
Non-current asset | 0 | 0 | |
Current liability | 0 | 0 | |
Non-current liability | (26.6) | (31.4) | |
Net liability recognized | (26.6) | (31.4) | |
Accumulated benefit obligation | 125.4 | 126.6 | |
Amounts recognized in Accumulated Other Comprehensive Loss, net | |||
Net actuarial loss | 52.2 | 54.9 | |
Prior service cost (credit) | 0 | 0 | |
Total amount recognized | 52.2 | 54.9 | |
Net actuarial losses from AOCI into net periodic cost | 1.5 | ||
Pension plans with underfunded or unfunded accumulated benefit obligation | |||
Aggregate projected benefit obligation | 125.4 | 126.6 | |
Aggregate accumulated benefit obligation | 125.4 | 126.6 | |
Aggregate fair value of plan assets | 98.8 | 95.2 | |
Foreign Plan [Member] | |||
Benefit Obligation [Roll Forward] | |||
Benefit obligation (period start) | 530.6 | 537.9 | |
Service cost | 4.9 | 6.7 | 11.1 |
Interest cost | 13.5 | 15.1 | 18.9 |
Benefits Paid | (19) | (25.7) | |
Plan participant contributions | 0.2 | 0.2 | |
Actuarial losses (gains) | 20.3 | 115.6 | |
Settlements and curtailments | (19.8) | (6.3) | |
Foreign currency effect | 50.4 | (84.2) | |
Other | 1.2 | (28.7) | |
Benefit Obligation (Period End) | 582.3 | 530.6 | 537.9 |
Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets (Period Start) | 365.9 | 399.6 | |
Actual return on plan assets | 25.1 | 47.9 | |
Employer contributions | 17.5 | 23.2 | |
Plan participant contributions | 0.2 | 0.2 | |
Benefits paid | (19) | (25.7) | |
Settlements | (19.1) | (2.2) | |
Foreign currency effect | 33.2 | (68.6) | |
Other | 0.4 | (8.5) | |
Fair Value of Plan Assets (Period End) | 404.2 | 365.9 | 399.6 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (178.1) | (164.7) | |
Amounts Recognized in Consolidated Balance Sheets | |||
Non-current asset | 9 | 7.6 | |
Current liability | (6.5) | (5.5) | |
Non-current liability | (180.6) | (166.8) | |
Net liability recognized | (178.1) | (164.7) | |
Accumulated benefit obligation | 577.9 | 526.2 | |
Amounts recognized in Accumulated Other Comprehensive Loss, net | |||
Net actuarial loss | 201.6 | 183.4 | |
Prior service cost (credit) | 1.1 | 0.9 | |
Total amount recognized | 202.7 | 184.3 | |
Net actuarial losses from AOCI into net periodic cost | 6 | ||
Pension plans with underfunded or unfunded accumulated benefit obligation | |||
Aggregate projected benefit obligation | 576.6 | 525.3 | |
Aggregate accumulated benefit obligation | 575.2 | 523.8 | |
Aggregate fair value of plan assets | 389.5 | 352.9 | |
Other Postretirement Benefits Plan [Member] | |||
Benefit Obligation [Roll Forward] | |||
Benefit obligation (period start) | 32.3 | 33.9 | |
Service cost | 0 | 0 | 0 |
Interest cost | 1.3 | 1.5 | 1.5 |
Benefits Paid | (5.9) | (5.8) | |
Plan participant contributions | 1.6 | 1.6 | |
Actuarial losses (gains) | 2.5 | 1.1 | |
Settlements and curtailments | 0 | 0 | |
Foreign currency effect | 0 | 0 | |
Other | 0 | 0 | |
Benefit Obligation (Period End) | 31.8 | 32.3 | 33.9 |
Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets (Period Start) | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 4.3 | 4.2 | |
Plan participant contributions | 1.6 | 1.6 | |
Benefits paid | (5.9) | (5.8) | |
Settlements | 0 | 0 | |
Foreign currency effect | 0 | 0 | |
Other | 0 | 0 | |
Fair Value of Plan Assets (Period End) | 0 | 0 | $ 0 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (31.8) | (32.3) | |
Amounts Recognized in Consolidated Balance Sheets | |||
Non-current asset | 0 | 0 | |
Current liability | (3.1) | (3.2) | |
Non-current liability | (28.7) | (29.1) | |
Net liability recognized | (31.8) | (32.3) | |
Amounts recognized in Accumulated Other Comprehensive Loss, net | |||
Net actuarial loss | 4.2 | 1.7 | |
Prior service cost (credit) | (0.4) | (0.6) | |
Total amount recognized | 3.8 | $ 1.1 | |
Other Foreign Pension Plans | |||
Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 56.2 |
Net Periodic Cost (Details)
Net Periodic Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 5.1 | 5.9 | 0.3 |
Expected return on plan assets | (6.2) | (6.6) | (7.6) |
Settlement and curtailment losses (gains) | 0 | 0 | 0 |
Amortization of: | |||
Prior service cost (credit) | 0 | 0 | 0 |
Net actuarial losses | 1.5 | 1.3 | 6.5 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 0.4 | $ 0.6 | $ (0.8) |
Discount rate | 4.20% | 4.80% | 4.15% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Discount rate | 3.70% | 4.20% | 4.80% |
Foreign Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost | |||
Service cost | $ 4.9 | $ 6.7 | $ 11.1 |
Interest cost | 13.5 | 15.1 | 18.9 |
Expected return on plan assets | (17.7) | (18.7) | (20.6) |
Settlement and curtailment losses (gains) | 6.8 | 0.4 | (0.2) |
Amortization of: | |||
Prior service cost (credit) | 0.1 | 0.1 | 0.1 |
Net actuarial losses | 5.5 | 4.2 | 4.1 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 13.1 | $ 7.8 | $ 13.4 |
Discount rate | 2.52% | 3.61% | 3.41% |
Rate of compensation increase | 2.36% | 3.18% | 2.99% |
Expected return on plan assets | 4.66% | 5.38% | 5.01% |
Discount rate | 2.36% | 2.52% | 3.61% |
Rate of compensation increase | 2.37% | 2.36% | 3.25% |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 1.3 | 1.5 | 1.5 |
Expected return on plan assets | 0 | 0 | 0 |
Settlement and curtailment losses (gains) | 0 | 0 | 0 |
Amortization of: | |||
Prior service cost (credit) | (0.2) | (0.2) | (0.1) |
Net actuarial losses | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1.1 | $ 1.3 | $ 1.4 |
Discount rate | 4.05% | 4.65% | 4.00% |
Discount rate | 3.65% | 4.05% | 4.65% |
Health care cost trend rate assumed for next year | 6.50% | 6.75% | 7.00% |
Year ultimate rate is reached | 2,024 | 2,024 | 2,024 |
Ultimate rate | 5.00% | 5.00% | 5.00% |
Fair Value of Pension Plan Asse
Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 503 | $ 461.1 |
Investment funds | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 14.7 | 14.4 |
Limited partnerships | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 29.5 | 28 |
Fixed income securities | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 23.4 | 22.9 |
Insurance contracts | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 7.9 | 7.8 |
Other plan assets | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 27.7 | 20.1 |
Total plan assets subject to leveling | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 103.2 | 93.2 |
Investments measured at net asset value | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 399.8 | 367.9 |
Level 1 | Investment funds | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 14.7 | 14.4 |
Level 1 | Limited partnerships | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 1 | Fixed income securities | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 23.4 | 22.6 |
Level 1 | Insurance contracts | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 1 | Other plan assets | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 27.7 | 20.1 |
Level 1 | Total plan assets subject to leveling | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 65.8 | 57.1 |
Level 2 | Investment funds | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 2 | Limited partnerships | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 2 | Fixed income securities | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0.3 |
Level 2 | Insurance contracts | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 7.9 | 7.8 |
Level 2 | Other plan assets | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 2 | Total plan assets subject to leveling | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 7.9 | 8.1 |
Level 3 | Investment funds | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 3 | Limited partnerships | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 29.5 | 28 |
Balance at beginning of period | 28 | 31 |
Actual return on plan assets | 1.5 | (3) |
Balance at end of period | 29.5 | 28 |
Level 3 | Fixed income securities | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 3 | Insurance contracts | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 3 | Other plan assets | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 3 | Total plan assets subject to leveling | ||
Fair value assets and liabilities measured on recurring basis | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 29.5 | $ 28 |
Employee Benefits Allocation of
Employee Benefits Allocation of Plan Assets (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Allocation of Plan Assets | ||
Defined benefit plan, plan assets, target allocation, percentage | 100.00% | |
Defined benefit plan, actual plan asset allocations | 100.00% | 100.00% |
Alternative Investments | ||
Allocation of Plan Assets | ||
Defined benefit plan, plan assets, target allocation, percentage | 27.00% | |
Defined benefit plan, actual plan asset allocations | 27.00% | 21.00% |
Equity securities | ||
Allocation of Plan Assets | ||
Defined benefit plan, plan assets, target allocation, percentage | 23.00% | |
Defined benefit plan, actual plan asset allocations | 23.00% | 23.00% |
Fixed income securities | ||
Allocation of Plan Assets | ||
Defined benefit plan, plan assets, target allocation, percentage | 21.00% | |
Defined benefit plan, actual plan asset allocations | 21.00% | 26.00% |
Liability driven investments | ||
Allocation of Plan Assets | ||
Defined benefit plan, plan assets, target allocation, percentage | 14.00% | |
Defined benefit plan, actual plan asset allocations | 14.00% | 14.00% |
Real estate | ||
Allocation of Plan Assets | ||
Defined benefit plan, plan assets, target allocation, percentage | 6.00% | |
Defined benefit plan, actual plan asset allocations | 6.00% | 6.00% |
Other plan assets | ||
Allocation of Plan Assets | ||
Defined benefit plan, plan assets, target allocation, percentage | 9.00% | |
Defined benefit plan, actual plan asset allocations | 9.00% | 10.00% |
Pension Cash Flows (Details)
Pension Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Estimated U.S. federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, no more than | $ 0.3 | |
Domestic Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Employer contributions | 2.6 | $ 0 |
Defined benefit plan, estimated future employer contributions in next fiscal year | 10 | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity | ||
Expected future benefit payments in 2018 | 13.7 | |
Expected future benefit payments in 2019 | 8.5 | |
Expected future benefit payments in 2020 | 8.6 | |
Expected future benefit payments in 2021 | 8 | |
Expected future benefit payments in 2022 | 8.4 | |
Expected future benefit payments in 2023-2027 | 37.2 | |
Foreign Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Employer contributions | 17.5 | 23.2 |
Defined benefit plan, estimated future employer contributions in next fiscal year | 18 | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity | ||
Expected future benefit payments in 2018 | 22.3 | |
Expected future benefit payments in 2019 | 23.8 | |
Expected future benefit payments in 2020 | 21.6 | |
Expected future benefit payments in 2021 | 22.3 | |
Expected future benefit payments in 2022 | 23.5 | |
Expected future benefit payments in 2023-2027 | 124 | |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Employer contributions | 4.3 | $ 4.2 |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity | ||
Expected future benefit payments in 2018 | 3.2 | |
Expected future benefit payments in 2019 | 3 | |
Expected future benefit payments in 2020 | 2.8 | |
Expected future benefit payments in 2021 | 2.6 | |
Expected future benefit payments in 2022 | 2.4 | |
Expected future benefit payments in 2023-2027 | $ 10.4 |
Savings Plans (Details)
Savings Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic Tax Authority | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Cost Recognized | $ 47.2 | $ 47 | $ 44.5 |
Discretionary Company Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Cost Recognized | 3.6 | 6.1 | 5.8 |
Defined Contribution Plans Participant Forfeitures | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Cost Recognized | 4.6 | 4.4 | 3.8 |
Foreign Tax Authority | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Cost Recognized | $ 47.4 | $ 44.5 | $ 43.9 |
Segment Operations (Details)
Segment Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Segments: | |||||||||||||||||||
Revenue | $ 2,341 | $ 1,902.6 | $ 1,884.9 | $ 1,753.9 | $ 2,264.5 | $ 1,922.2 | $ 1,917.9 | $ 1,742 | $ 7,882.4 | $ 7,846.6 | $ 7,613.8 | ||||||||
Segment operating income | 973.6 | 941 | 874.8 | ||||||||||||||||
Interest expense | (90.8) | (90.6) | (85.8) | ||||||||||||||||
Interest income | 19.4 | 20.1 | 22.8 | ||||||||||||||||
Other expense, net | (1.7) | [1],[2] | $ (9.9) | [1],[2] | $ (15.4) | [1],[2] | $ 0.8 | [1],[2] | (26.8) | [1],[2] | $ 5.3 | [1],[2] | $ 0.4 | [1],[2] | $ (19.2) | [1],[2] | (26.2) | (40.3) | (49.6) |
Income before income taxes | 876 | 830.2 | 762.2 | ||||||||||||||||
Depreciation and amortization of fixed assets and intangible assets | 157.1 | 160.2 | 157 | ||||||||||||||||
Capital expenditures | 155.9 | 200.7 | 161.1 | ||||||||||||||||
Assets | 12,695.2 | 12,485.2 | 12,695.2 | 12,485.2 | |||||||||||||||
IAN | |||||||||||||||||||
Segments: | |||||||||||||||||||
Revenue | 6,397.3 | 6,319.4 | 6,145.4 | ||||||||||||||||
Segment operating income | 907.4 | 898.2 | 850.3 | ||||||||||||||||
Depreciation and amortization of fixed assets and intangible assets | 111.8 | 117.7 | 117.5 | ||||||||||||||||
Capital expenditures | 112 | 149.2 | 117.5 | ||||||||||||||||
Assets | 10,973 | 10,660 | 10,973 | 10,660 | |||||||||||||||
CMG | |||||||||||||||||||
Segments: | |||||||||||||||||||
Revenue | 1,485.1 | 1,527.2 | 1,468.4 | ||||||||||||||||
Segment operating income | 192.8 | 190 | 166.3 | ||||||||||||||||
Depreciation and amortization of fixed assets and intangible assets | 20.4 | 19.5 | 18.4 | ||||||||||||||||
Capital expenditures | 17.7 | 16.6 | 12.7 | ||||||||||||||||
Assets | 1,422.9 | 1,428.3 | 1,422.9 | 1,428.3 | |||||||||||||||
Corporate and Other | |||||||||||||||||||
Segments: | |||||||||||||||||||
Segment operating income | (126.6) | (147.2) | (141.8) | ||||||||||||||||
Depreciation and amortization of fixed assets and intangible assets | 24.9 | 23 | 21.1 | ||||||||||||||||
Capital expenditures | 26.2 | 34.9 | $ 30.9 | ||||||||||||||||
Assets | $ 299.3 | $ 396.9 | $ 299.3 | $ 396.9 | |||||||||||||||
[1] | As part of the adoption of FASB ASU 2017-07, we have reclassified a portion of postretirement costs from salaries and related expenses to other income (expense), net. | ||||||||||||||||||
[2] | The three months ended June 30 and September 30, 2017 included pre-tax net losses of $13.1 and $8.7, respectively, on sales of businesses. The three months ended March 31 and December 31, 2016 included pre-tax net losses of $16.3 and $25.3, respectively, on sales of businesses. |
Segment Information Major Geogr
Segment Information Major Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues and Long-Lived Assets | |||||||||||
Revenue | $ 2,341 | $ 1,902.6 | $ 1,884.9 | $ 1,753.9 | $ 2,264.5 | $ 1,922.2 | $ 1,917.9 | $ 1,742 | $ 7,882.4 | $ 7,846.6 | $ 7,613.8 |
Long-Lived Assets | 1,045.1 | 1,004.4 | 1,045.1 | 1,004.4 | |||||||
Domestic | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Revenue | 4,714.3 | 4,684.8 | 4,475.5 | ||||||||
Long-Lived Assets | 705.5 | 684.8 | 705.5 | 684.8 | |||||||
Total International | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Revenue | 3,168.1 | 3,161.8 | 3,138.3 | ||||||||
Long-Lived Assets | 339.6 | 319.6 | 339.6 | 319.6 | |||||||
United Kingdom | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Revenue | 681.8 | 695.7 | 687.7 | ||||||||
Long-Lived Assets | 56.2 | 52 | 56.2 | 52 | |||||||
Continental Europe | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Revenue | 716.1 | 699.8 | 697.2 | ||||||||
Long-Lived Assets | 73.6 | 57 | 73.6 | 57 | |||||||
Asia Pacific | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Revenue | 913.6 | 923 | 916.9 | ||||||||
Long-Lived Assets | 115.5 | 118.3 | 115.5 | 118.3 | |||||||
Latin America | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Revenue | 355.9 | 372.7 | 383.5 | ||||||||
Long-Lived Assets | 48.2 | 49 | 48.2 | 49 | |||||||
Other | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Revenue | 500.7 | 470.6 | $ 453 | ||||||||
Long-Lived Assets | $ 46.1 | $ 43.3 | $ 46.1 | $ 43.3 |
Commitments and Contingencies N
Commitments and Contingencies Net Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Gross rent expense | $ 371 | $ 366.1 | $ 336.5 |
Third-party sublease rental income | (4.6) | (4.1) | (5.5) |
Net rent expense | $ 366.4 | $ 362 | $ 331 |
Future Minimum Lease Payments (
Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Rent Obligations, due 2018 | $ 335 |
Rent Obligations, due 2019 | 312.1 |
Rent Obligations, due 2020 | 285.3 |
Rent Obligations, due 2021 | 251.4 |
Rent Obligations, due 2022 | 204.1 |
Rent Obligations, due thereafter | 727.2 |
Total Rent Obligations | 2,115.1 |
Sublease Rental Income, due 2018 | (4.2) |
Sublease Rental Income, due 2019 | (3.8) |
Sublease Rental Income, due 2020 | (2.5) |
Sublease Rental Income, due 2021 | (1.4) |
Sublease Rental Income, due 2022 | (0.8) |
Sublease Rental Income, due thereafter | (0.5) |
Total Sublease Rental Income | (13.2) |
Net Rent, due 2018 | 330.8 |
Net Rent, due 2019 | 308.3 |
Net Rent, due 2020 | 282.8 |
Net Rent, due 2021 | 250 |
Net Rent, due 2022 | 203.3 |
Net Rent, due thereafter | 726.7 |
Total Net Rent | $ 2,101.9 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Parent company guarantees on lease obligations | $ 829.2 | $ 857.3 |
Parent company guarantees relating to credit facilities | 491 | $ 395.6 |
Assets pledged as security for parent company guarantees | $ 0 |
Contingent Acquisition Obligati
Contingent Acquisition Obligations (Details) $ in Millions | Dec. 31, 2017USD ($) | |
Deferred acquisition payments | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Future contingent acquisition obligation due in 2018 | $ 41.9 | |
Future contingent acquisition obligation due in 2019 | 27.5 | |
Future contingent acquisition obligation due in 2020 | 16.1 | |
Future contingent acquisition obligation due in 2021 | 24.4 | |
Future contingent acquisition obligation due in 2022 | 4.8 | |
Future contingent acquisition obligation due thereafter | 6.3 | |
Future contingent acquisition obligation due, total | 121 | |
Redeemable noncontrolling interests and call options with affiliates | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Future contingent acquisition obligation due in 2018 | 37.1 | [1] |
Future contingent acquisition obligation due in 2019 | 26.4 | [1] |
Future contingent acquisition obligation due in 2020 | 62.9 | [1] |
Future contingent acquisition obligation due in 2021 | 10.3 | [1] |
Future contingent acquisition obligation due in 2022 | 6.6 | [1] |
Future contingent acquisition obligation due thereafter | 4.1 | [1] |
Future contingent acquisition obligation due, total | 147.4 | [1] |
Redeemable at noncontrolling equity owners discretion | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Future contingent acquisition obligation due in 2018 | 24.8 | |
Total contingent acquisition payments | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Future contingent acquisition obligation due in 2018 | 79 | |
Future contingent acquisition obligation due in 2019 | 53.9 | |
Future contingent acquisition obligation due in 2020 | 79 | |
Future contingent acquisition obligation due in 2021 | 34.7 | |
Future contingent acquisition obligation due in 2022 | 11.4 | |
Future contingent acquisition obligation due thereafter | 10.4 | |
Future contingent acquisition obligation due, total | $ 268.4 | |
[1] | We have entered into certain acquisitions that contain both redeemable noncontrolling interests and call options with similar terms and conditions. The estimated amounts listed would be paid in the event of exercise at the earliest exercise date. We have certain redeemable noncontrolling interests that are exercisable at the discretion of the noncontrolling equity owners as of December 31, 2017. These estimated payments of $24.8 are included within the total payments expected to be made in 2018, and will continue to be carried forward into 2019 or beyond until exercised or expired. Redeemable noncontrolling interests are included in the table at current exercise price payable in cash, not at applicable redemption value, in accordance with the authoritative guidance for classification and measurement of redeemable securities. |
Recent Accounting Standards Rec
Recent Accounting Standards Recent Accounting Standards (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||||
Net periodic costs excluding service costs | $ 9.6 | $ 3 | $ 2.9 | |
Restricted cash and cash equivalents | 6.8 | $ 2.6 | $ 3.2 | $ 3.8 |
Increase in third-party costs due to revenue standard low range | 1,100 | |||
Increase in third-party costs due to revenue standard high range | $ 1,300 |
Results by Quarter (Unaudite134
Results by Quarter (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenue | $ 2,341 | $ 1,902.6 | $ 1,884.9 | $ 1,753.9 | $ 2,264.5 | $ 1,922.2 | $ 1,917.9 | $ 1,742 | $ 7,882.4 | $ 7,846.6 | $ 7,613.8 | ||||||||
Salaries and related expenses | 1,325.8 | [1] | 1,227.6 | [1] | 1,239.3 | [1] | 1,275.4 | [1] | 1,308.8 | [1] | 1,228 | [1] | 1,229.5 | [1] | 1,268.8 | [1] | 5,068.1 | 5,035.1 | 4,854.8 |
Office and general expenses | 496.9 | 455.9 | 439.1 | 448.8 | 470 | 486.2 | 464.1 | 450.2 | 1,840.7 | 1,870.5 | 1,884.2 | ||||||||
Operating income | 518.3 | 219.1 | 206.5 | 29.7 | 485.7 | 208 | 224.3 | 23 | 973.6 | 941 | 874.8 | ||||||||
Other income (expense), net | (1.7) | [1],[2] | (9.9) | [1],[2] | (15.4) | [1],[2] | 0.8 | [1],[2] | (26.8) | [1],[2] | 5.3 | [1],[2] | 0.4 | [1],[2] | (19.2) | [1],[2] | (26.2) | (40.3) | (49.6) |
Total (expenses) and other income | (19.5) | (26.8) | (36.4) | (14.9) | (44.6) | (11.7) | (18.5) | (36) | (97.6) | (110.8) | (112.6) | ||||||||
(Benefit of) provision for income taxes | 166.1 | [3] | 42.5 | [3] | 75.4 | [3] | (2.1) | [3] | 106.1 | [3] | 63.8 | [3] | 43.7 | [3] | (15.6) | [3] | 281.9 | 198 | 282.8 |
Net income | 333.5 | 148.8 | 94.6 | 18.1 | 336.9 | 132.7 | 160.2 | 2.7 | $ 595 | $ 632.5 | $ 480.5 | ||||||||
Net income available to IPG common stockholders | $ 316.6 | $ 146.2 | $ 94.7 | $ 21.5 | $ 317.6 | $ 128.6 | $ 156.9 | $ 5.4 | |||||||||||
Basic earnings per share | $ 0.82 | $ 0.38 | $ 0.24 | $ 0.05 | $ 0.81 | $ 0.32 | $ 0.39 | $ 0.01 | $ 1.49 | $ 1.53 | $ 1.11 | ||||||||
Diluted earnings per share | 0.81 | 0.37 | 0.24 | 0.05 | 0.78 | 0.32 | 0.38 | 0.01 | 1.46 | 1.49 | 1.09 | ||||||||
Dividends declared per common share | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.72 | $ 0.60 | $ 0.48 | ||||||||
Pre-tax losses on sales of businesses | $ 8.7 | $ 13.1 | $ 25.3 | $ 16.3 | |||||||||||||||
Foreign tax credits | $ 31.2 | ||||||||||||||||||
Net impact of the Tax Act | $ 36 | $ 0 | $ 0 | ||||||||||||||||
Tax benefit (reversal of valuation allowance) | 12.2 | ||||||||||||||||||
Tax benefit (conclusion and settlement of a tax examination of previous years) | $ 23.4 | ||||||||||||||||||
Tax benefit (refunds to be claimed on future amended U.S. federal tax returns) | $ 37.4 | ||||||||||||||||||
[1] | As part of the adoption of FASB ASU 2017-07, we have reclassified a portion of postretirement costs from salaries and related expenses to other income (expense), net. | ||||||||||||||||||
[2] | The three months ended June 30 and September 30, 2017 included pre-tax net losses of $13.1 and $8.7, respectively, on sales of businesses. The three months ended March 31 and December 31, 2016 included pre-tax net losses of $16.3 and $25.3, respectively, on sales of businesses. | ||||||||||||||||||
[3] | The three months ended September 30, 2017 included a tax benefit of $31.2 related to foreign tax credits from distributions of unremitted earnings, which was reversed during the three months ended December 31, 2017 as a result of the enactment of the Tax Cuts and Jobs Act. The three months ended December 31, 2017 included a net tax benefit of $36.0 as a result of the enactment of the Tax Cuts and Jobs Act. The three months ended March 31, 2016 included a tax benefit of $12.2 due to the reversal of valuation allowances. The three months ended June 30, 2016 included a tax benefit of $23.4 related to the conclusion and settlement of a tax examination of previous years. The three months ended December 31, 2016 included a tax benefit of $37.4 for refunds to be claimed on future amended U.S. federal returns. |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Subsequent Event [Line Items] | |
Dividends payable, amount per share | $ / shares | $ 0.21 |
Dividends payable, date to be paid | Mar. 15, 2018 |
Dividends payable, date of record | Mar. 1, 2018 |
2018 Share Repurchase Program | |
Subsequent Event [Line Items] | |
Share repurchase program, initial authorized amount | $ | $ 300 |