INTERPUBLIC GROUP OF COMPANIES, INC. [IPG] Filings

10-Q 1 ipg-20220930.htm 10-Q ipg-20220930

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 1-6686

THE INTERPUBLIC GROUP OF COMPANIES, INC.

(Exact name of registrant as specified in its charter)


Delaware						13-1024020
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

909 Third Avenue, New York, New York 10022

(Address of principal executive offices) (Zip Code)

(212)704-1200

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	IPG	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

The number of shares of the registrant’s common stock outstanding as of October 18, 2022 was 388,524,718.

INDEX


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021	3
	Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended S e ptember 30, 2022 and 2021	4
	Consolidated Balance Sheets as of S e ptember 30, 2022 and December 31, 2021	5
	Consolidated Statements of Cash Flows for the Nine Months Ended S e ptember 30, 2022 and 2021	6
	Consolidated Statements of Stockholders’ Equity for the Three and N i ne Months Ended S e ptember 30, 2022 and 2021	7
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	46
Item 4.	Controls and Procedures	46
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47

Item 6.	Exhibits	47
INDEX TO EXHIBITS		48
SIGNATURES		49

INFORMATION REGARDING FORWARD-LOOKING DISCLOSURE

This quarterly report on Form 10-Q contains forward-looking statements. Statements in this report that are not historical facts, including statements about management’s beliefs and expectations, constitute forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “would,” “estimate,” “continue” or comparable terminology are intended to identify forward-looking statements. These statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined under Item 1A, Risk Factors, in our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following:

•the effects of a challenging economy on the demand for our advertising and marketing services, on our clients’ financial condition and on our business or financial condition;

•the impacts of the COVID-19 pandemic, including unanticipated developments like the emergence of new coronavirus variants or any shortfalls in vaccination efforts, and associated mitigation measures such as social distancing efforts and restrictions on businesses, social activities and travel on the economy, our clients and demand for our services, which may precipitate or exacerbate other risks and uncertainties;

•our ability to attract new clients and retain existing clients;

•our ability to retain and attract key employees;

•risks associated with assumptions we make in connection with our critical accounting estimates, including changes in assumptions associated with any effects of a challenging economy;

•potential adverse effects if we are required to recognize impairment charges or other adverse accounting-related developments;

•risks associated with the effects of global, national and regional economic and political conditions, including counterparty risks and fluctuations in interest rates, inflation rates and currency exchange rates;

•developments from changes in the regulatory and legal environment for advertising and marketing services companies around the world, including laws and regulations related to data protection and consumer privacy;

•the impact on our operations of general or directed cybersecurity events; and

•failure to fully realize the anticipated benefits of our 2020 restructuring actions and other cost-savings initiatives.

Investors should carefully consider these factors and the additional risk factors outlined in more detail under Item 1A, Risk Factors, in our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q.

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PART I – FINANCIAL INFORMATION


Item 1.			Financial Statements (Unaudited)

THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in Millions, Except Per Share Amounts)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
REVENUE:
Revenue before billable expenses	$	2,296.2	$	2,261.7	$	6,898.9	$	6,559.0
Billable expenses	341.5		280.3		1,043.0		749.6
Total revenue	2,637.7		2,542.0		7,941.9		7,308.6

OPERATING EXPENSES:
Salaries and related expenses	1,546.8		1,511.2		4,701.4		4,389.2
Office and other direct expenses	327.9		300.9		1,001.1		894.8
Billable expenses	341.5		280.3		1,043.0		749.6
Cost of services	2,216.2		2,092.4		6,745.5		6,033.6
Selling, general and administrative expenses	18.5		32.2		57.2		89.8
Depreciation and amortization	67.0		69.4		201.9		208.7
Restructuring charges	(5.8)		(3.5)		0.7		(2.4)
Total operating expenses	2,295.9		2,190.5		7,005.3		6,329.7

OPERATING INCOME	341.8		351.5		936.6		978.9

EXPENSES AND OTHER INCOME:
Interest expense	(44.9)		(42.9)		(125.3)		(135.1)
Interest income	17.0		7.4		38.0		21.9
Other income (expense), net	17.5		2.3		6.8		(76.9)
Total (expenses) and other income	(10.4)		(33.2)		(80.5)		(190.1)

INCOME BEFORE INCOME TAXES	331.4		318.3		856.1		788.8
Provision for income taxes	76.4		73.9		209.2		184.4
INCOME OF CONSOLIDATED COMPANIES	255.0		244.4		646.9		604.4
Equity in net income of unconsolidated affiliates	2.5		0.2		3.3		0.4
NET INCOME	257.5		244.6		650.2		604.8
Net income attributable to non-controlling interests	(5.7)		(4.7)		(9.4)		(9.9)
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS	$	251.8	$	239.9	$	640.8	$	594.9

Earnings per share available to IPG common stockholders:
Basic	$	0.64	$	0.61	$	1.63	$	1.51
Diluted	$	0.64	$	0.60	$	1.62	$	1.49

Weighted-average number of common shares outstanding:
Basic	390.6		393.5		392.7		392.8
Diluted	394.1		399.8		396.2		398.3

The accompanying notes are an integral part of these unaudited financial statements.

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THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in Millions)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
NET INCOME	$	257.5	$	244.6	$	650.2	$	604.8

OTHER COMPREHENSIVE LOSS
Foreign currency translation:
Foreign currency translation adjustments	(117.7)		(51.2)		(230.2)		(75.6)
Reclassification adjustments recognized in net income	(1.3)		0.5		0.5		(1.0)
	(119.0)		(50.7)		(229.7)		(76.6)
Derivative instruments:
Changes in fair value of derivative instruments	5.2		0.9		17.8		15.8
Recognition of previously unrealized net (gain) loss in net income	(0.4)		(0.3)		(1.1)		4.6
Income tax effect	(1.2)		0.1		(4.2)		(2.5)
	3.6		0.7		12.5		17.9
Defined benefit pension and other postretirement plans:
Net actuarial gains for the period	0.0		5.4		3.4		4.2
Amortization of unrecognized losses, transition obligation and prior service cost included in net income	1.5		2.4		4.8		7.2
Settlement losses included in net income	—		1.2		—		1.2
Other	(0.2)		0.1		(0.2)		0.1
Income tax effect	(0.3)		(2.1)		(0.9)		(3.1)
	1.0		7.0		7.1		9.6
Other comprehensive loss, net of tax	(114.4)		(43.0)		(210.1)		(49.1)
TOTAL COMPREHENSIVE INCOME	143.1		201.6		440.1		555.7
Less: comprehensive income attributable to non-controlling interests	5.0		3.8		7.7		9.0
COMPREHENSIVE INCOME ATTRIBUTABLE TO IPG	$	138.1	$	197.8	$	432.4	$	546.7

The accompanying notes are an integral part of these unaudited financial statements.

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THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in Millions)

(Unaudited)


	September 30, 2022		December 31, 2021
ASSETS:
Cash and cash equivalents	$	1,768.3	$	3,270.0
Accounts receivable, net of allowance of $57.4 and $68.5, respectively	4,121.1		5,177.7
Accounts receivable, billable to clients	2,158.0		2,347.2
Assets held for sale	16.2		8.2
Other current assets	471.3		428.7
Total current assets	8,534.9		11,231.8
Property and equipment, net of accumulated depreciation and amortization of $1,243.3 and $1,201.6, respectively	632.9		675.8
Deferred income taxes	267.2		301.4
Goodwill	4,803.4		4,908.7
Other intangible assets	774.9		847.5
Operating lease right-of-use assets	1,391.6		1,544.4
Other non-current assets	470.3		399.6
TOTAL ASSETS	$	16,875.2	$	19,909.2

LIABILITIES:
Accounts payable	$	6,535.6	$	8,960.0
Accrued liabilities	669.3		918.1
Contract liabilities	659.8		688.5
Short-term borrowings	55.8		47.5
Current portion of long-term debt	0.6		0.7
Current portion of operating leases	237.8		265.8
Liabilities held for sale	10.3		9.4
Total current liabilities	8,169.2		10,890.0
Long-term debt	2,902.5		2,908.6
Non-current operating leases	1,409.6		1,576.0
Deferred compensation	293.2		329.1
Other non-current liabilities	634.5		600.7
TOTAL LIABILITIES	13,409.0		16,304.4

Redeemable non-controlling interests (see Note 5)	9.1		15.6

STOCKHOLDERS’ EQUITY:
Common stock	39.6		39.3
Additional paid-in capital	1,239.3		1,226.6
Retained earnings	3,449.9		3,154.3
Accumulated other comprehensive loss, net of tax	(1,102.6)		(894.2)


	3,626.2		3,526.0
Less: Treasury stock	(221.6)		—
Total IPG stockholders’ equity	3,404.6		3,526.0
Non-controlling interests	52.5		63.2
TOTAL STOCKHOLDERS’ EQUITY	3,457.1		3,589.2
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	16,875.2	$	19,909.2

The accompanying notes are an integral part of these unaudited financial statements.

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THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in Millions)

(Unaudited)


	Nine months ended September 30,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	650.2	$	604.8
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	201.9		208.7
Amortization of restricted stock and other non-cash compensation	38.0		57.9
Deferred income tax	26.0		34.6
Net losses on sales of businesses	4.0		18.6
Net amortization of bond discounts and deferred financing costs	2.2		4.8
Loss on early extinguishment of debt	—		74.0
Provision for uncollectible receivables	(5.2)		(6.3)

Other	0.5		1.9
Changes in assets and liabilities, net of acquisitions and divestitures, provided (using) cash:
Accounts receivable	725.6		511.5
Accounts receivable, billable to clients	38.4		(367.3)
Other current assets	(94.7)		(66.3)
Accounts payable	(1,982.4)		(302.1)
Accrued liabilities	(232.0)		(65.2)
Contract liabilities	21.5		(26.3)
Other non-current assets and liabilities	(52.8)		(74.7)
Net cash (used in) provided by operating activities	(658.8)		608.6
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(118.5)		(123.4)
Deconsolidation of a subsidiary	(20.4)		(16.3)

Net proceeds from investments	2.6		32.7
Other investing activities	10.1		(8.1)
Net cash used in investing activities	(126.2)		(115.1)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common stock dividends	(345.1)		(321.4)
Repurchases of common stock	(221.6)		—
Tax payments for employee shares withheld	(39.9)		(25.0)
Net decrease in short-term borrowings	(27.8)		(9.4)
Distributions to non-controlling interests	(9.6)		(9.0)
Acquisition-related payments	(8.4)		(28.0)
Proceeds from long-term debt	0.0		998.1
Exercise of stock options	0.0		8.0
Early extinguishment of long-term debt	—		(1,066.8)
Other financing activities	(0.5)		(14.3)
Net cash used in financing activities	(652.9)		(467.8)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(59.2)		(40.3)
Net decrease in cash, cash equivalents and restricted cash	(1,497.1)		(14.6)
Cash, cash equivalents and restricted cash at beginning of period	3,272.2		2,511.5
Cash, cash equivalents and restricted cash at end of period	$	1,775.1	$	2,496.9

The accompanying notes are an integral part of these unaudited financial statements.

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THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Amounts in Millions)

(Unaudited)


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss, Net of Tax		Treasury Stock		Total IPG Stockholders’ Equity		Non-controlling Interests		Total Stockholders’ Equity
	Shares	Amount
Balance at June 30, 2022	396.4	$	39.6	$	1,222.1	$	3,311.8	$	(988.9)	$	(147.9)	$	3,436.7	$	52.3	$	3,489.0
Net income						251.8						251.8		5.7		257.5
Other comprehensive loss								(113.7)				(113.7)		(0.7)		(114.4)
Reclassifications related to redeemable non-controlling interests				0.0								0.0		0.0		0.0
Distributions to non-controlling interests												0.0		(4.4)		(4.4)
Change in redemption value of redeemable non-controlling interests						0.1						0.1				0.1
Repurchase of common stock										(73.7)		(73.7)				(73.7)
Common stock dividends ($0.290 per share)						(113.8)						(113.8)				(113.8)
Stock-based compensation	0.2	0.0		17.4								17.4				17.4
Shares withheld for taxes	0.0	0.0		(0.2)								(0.2)				(0.2)
Other														(0.4)		(0.4)
Balance at September 30, 2022	396.6	$	39.6	$	1,239.3	$	3,449.9	$	(1,102.6)	$	(221.6)	$	3,404.6	$	52.5	$	3,457.1


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss, Net of Tax		Treasury Stock		Total IPG Stockholders’ Equity		Non-controlling Interests		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2021	394.3	$	39.3	$	1,226.6	$	3,154.3	$	(894.2)	$	0.0	$	3,526.0	$	63.2	$	3,589.2
Net income						640.8						640.8		9.4		650.2
Other comprehensive loss								(208.4)				(208.4)		(1.7)		(210.1)
Reclassifications related to redeemable non-controlling interests				(3.1)								(3.1)		0.8		(2.3)
Distributions to non-controlling interests														(9.6)		(9.6)
Change in redemption value of redeemable non-controlling interests						(1.2)						(1.2)				(1.2)
Repurchase of common stock										(221.6)		(221.6)				(221.6)
Common stock dividends ($0.870 per share)						(344.0)						(344.0)				(344.0)
Stock-based compensation	3.3	0.4		53.6								54.0				54.0
Shares withheld for taxes	(1.0)	(0.1)		(38.3)								(38.4)				(38.4)
Other				0.5								0.5		(9.6)		(9.1)
Balance at September 30, 2022	396.6	$	39.6	$	1,239.3	$	3,449.9	$	(1,102.6)	$	(221.6)	$	3,404.6	$	52.5	$	3,457.1

Table of Contents


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss, Net of Tax		Total IPG Stockholders’ Equity		Non-controlling Interests		Total Stockholders’ Equity
	Shares	Amount
Balance at June 30, 2021	393.5	$	39.3	$	1,132.4	$	2,777.5	$	(886.3)	$	3,062.9	$	48.4	$	3,111.3
Net income						239.9				239.9		4.7		244.6
Other comprehensive loss								(42.1)		(42.1)		(0.9)		(43.0)
Reclassifications related to redeemable non-controlling interests												(0.5)		(0.5)
Distributions to non-controlling interests												(2.2)		(2.2)
Change in redemption value of redeemable non-controlling interests						(1.4)				(1.4)				(1.4)

Common stock dividends ($0.270 per share)						(107.1)				(107.1)				(107.1)
Stock-based compensation	0.1	0.0		19.8						19.8				19.8
Exercise of stock options	0.0	0.0		0.2						0.2				0.2
Shares withheld for taxes	0.0	0.0		(0.8)						(0.8)				(0.8)
Other												0.4		0.4
Balance at September 30, 2021	393.6	$	39.3	$	1,151.6	$	2,908.9	$	(928.4)	$	3,171.4	$	49.9	$	3,221.3


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss, Net of Tax		Total IPG Stockholders’ Equity		Non-controlling Interests		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2020	390.9	$	39.0	$	1,099.3	$	2,636.9	$	(880.2)	$	2,895.0	$	48.9	$	2,943.9
Net income						594.9				594.9		9.9		604.8
Other comprehensive loss								(48.2)		(48.2)		(0.9)		(49.1)
Reclassifications related to redeemable non-controlling interests												0.1		0.1
Distributions to non-controlling interests												(9.0)		(9.0)
Change in redemption value of redeemable non-controlling interests						(2.1)				(2.1)				(2.1)

Common stock dividends ($0.810 per share)						(320.8)				(320.8)				(320.8)
Stock-based compensation	3.0	0.3		68.9						69.2				69.2
Exercise of stock options	0.6	0.1		8.5						8.6				8.6
Shares withheld for taxes	(0.9)	(0.1)		(25.1)						(25.2)				(25.2)
Other												0.9		0.9
Balance at September 30, 2021	393.6	$	39.3	$	1,151.6	$	2,908.9	$	(928.4)	$	3,171.4	$	49.9	$	3,221.3

The accompanying notes are an integral part of these unaudited financial statements.

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Notes to Consolidated Financial Statements

(Amounts in Millions, Except Per Share Amounts)

(Unaudited)

Note 1: Basis of Presentation

The unaudited Consolidated Financial Statements have been prepared by The Interpublic Group of Companies, Inc. and its subsidiaries (the “Company,” “IPG,” “we,” “us” or “our”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting interim financial information on Form 10-Q. Accordingly, they do not include certain information and disclosures required for complete financial statements. The effects of the coronavirus ("COVID-19") pandemic, as well as heightened macroeconomic uncertainty, have impacted and will likely continue to impact our results of operations, cash flows and financial position. The Company’s Consolidated Financial Statements presented herein reflect the latest estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. The Company believes it has used reasonable estimates and assumptions to assess the fair values of goodwill, long-lived assets and indefinite-lived intangible assets; assessment of the annual effective tax rate; valuation of deferred income taxes and allowance for expected credit losses on future uncollectible accounts receivable.

Actual results could differ from these estimates and assumptions. The consolidated results for interim periods are not necessarily indicative of results for the full year and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report”).

Effective January 1, 2022, the Company completed a managerial and operational review, which resulted in organizational realignments to our financial reporting segment structure. As a result, the Company determined we conduct our business across three reportable segments described in Note 11. The three reportable segments are: Media, Data & Engagement Solutions ("MD&E"), Integrated Advertising & Creativity Led Solutions ("IA&C"), and Specialized Communications & Experiential Solutions ("SC&E"). In conjunction with the new reporting structure, the Company has recast certain prior period amounts, wherever applicable, to reflect our revised organizational alignment. This change does not impact the unaudited consolidated statements of operations and comprehensive income, consolidated balance sheets, consolidated statement of cash flows and consolidated statements of stockholders' equity for any of the previously reported periods.

Cost of services is comprised of the expenses of our revenue-producing reportable segments, MD&E, IA&C, and SC&E, including salaries and related expenses, office and other direct expenses and billable expenses, and includes an allocation of the centrally managed expenses from our "Corporate and Other" group. Office and other direct expenses include rent expense, professional fees, certain expenses incurred by our staff in servicing our clients and other costs directly attributable to client engagements.

Selling, general and administrative expenses are primarily the unallocated expenses from Corporate and Other, excluding depreciation and amortization.

Depreciation and amortization of fixed assets and intangible assets of the Company is disclosed as a separate operating expense.

Restructuring charges in 2022 consist of adjustments to the Company's restructuring actions taken during 2020 to lower our operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business, as discussed further in Note 7. Restructuring charges mainly include severance and termination costs and lease impairment costs.

In the opinion of management, these unaudited Consolidated Financial Statements include all adjustments, consisting only of normal and recurring adjustments necessary for a fair statement of the information for each period contained therein. Certain reclassifications have been made to prior-period financial statements to conform to the current-period presentation.

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Notes to Consolidated Financial Statements – (continued)

(Amounts in Millions, Except Per Share Amounts)

(Unaudited)

Note 2: Revenue

Disaggregation of Revenue

We have three reportable segments as of September 30, 2022: MD&E, IA&C and SC&E, as further discussed in Note 11. MD&E principally generates revenue from providing global media and communications services, digital services and products, advertising and marketing technology, e‐commerce services, data management and analytics, strategic consulting, and digital brand experience. IA&C principally generates revenue from providing advertising, corporate and brand identity services, and strategic consulting. SC&E generates revenue from providing best-in-class global public relations and communications services, events, sports and entertainment marketing, and strategic consulting.

Our agencies are located in over 100 countries, including every significant world market. Our geographic revenue breakdown is listed below.


	Three months ended September 30,				Nine months ended September 30,
Total revenue:	2022		2021		2022		2021
United States	$	1,744.3	$	1,612.1	$	5,171.8	$	4,595.8
International:
United Kingdom	195.5		224.3		646.8		637.4
Continental Europe	184.4		200.2		610.2		625.6
Asia Pacific	219.8		229.0		652.9		673.1
Latin America	113.6		104.3		318.0		290.1
Other	180.1		172.1		542.2		486.6
Total International	893.4		929.9		2,770.1		2,712.8
Total Consolidated	$	2,637.7	$	2,542.0	$	7,941.9	$	7,308.6


	Three months ended September 30,				Nine months ended September 30,
Revenue before billable expenses1:	2022		2021		2022		2021
United States	$	1,523.0	$	1,459.3	$	4,548.0	$	4,204.6
International:
United Kingdom	176.5		195.1		543.7		573.7
Continental Europe	160.1		178.1		539.2		559.4
Asia Pacific	187.1		192.0		549.5		553.6
Latin America	107.4		96.3		297.0		268.6
Other	142.1		140.9		421.5		399.1
Total International	773.2		802.4		2,350.9		2,354.4
Total Consolidated	$	2,296.2	$	2,261.7	$	6,898.9	$	6,559.0

1 Revenue before billable expenses was previously labeled as net revenue.

Table of Contents

Notes to Consolidated Financial Statements – (continued)

(Amounts in Millions, Except Per Share Amounts)

(Unaudited)


MD&E	Three months ended September 30,				Nine months ended September 30,
Total revenue:	2022		2021		2022		2021
United States	$	613.1	$	614.4	$	1,841.3	$	1,752.5
International	381.5		387.1		1,149.9		1,123.5
Total MD&E	$	994.6	$	1,001.5	$	2,991.2	$	2,876.0

Revenue before billable expenses:
United States	$	606.5	$	606.8	$	1,811.9	$	1,733.2
International	371.5		373.2		1,116.0		1,081.9
Total MD&E	$	978.0	$	980.0	$	2,927.9	$	2,815.1


IA&C	Three months ended September 30,				Nine months ended September 30,
Total revenue:	2022		2021		2022		2021
United States	$	689.9	$	644.0	$	2,081.7	$	1,883.8
International	367.6		389.3		1,133.4		1,151.6
Total IA&C	$	1,057.5	$	1,033.3	$	3,215.1	$	3,035.4

Revenue before billable expenses:
United States	$	665.5	$	620.5	$	2,002.5	$	1,810.8
International	307.8		330.7		938.6		978.9
Total IA&C	$	973.3	$	951.2	$	2,941.1	$	2,789.7


SC&E	Three months ended September 30,				Nine months ended September 30,
Total revenue:	2022		2021		2022		2021
United States	$	441.3	$	353.7	$	1,248.8	$	959.5
International	144.3		153.5		486.8		437.7
Total SC&E	$	585.6	$	507.2	$	1,735.6	$