Document and Entity Information (USD $) In Billions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Feb. 16, 2011	Jun. 30, 2010
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Entity Registrant Name	INTERPUBLIC GROUP OF COMPANIES, INC.
Entity Central Index Key	0000051644
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		489,199,876
Entity Public Float			$ 3.5
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No

Consolidated Statements of Operations (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statements of Operations
REVENUE	$ 6,531.9	$ 6,027.6	$ 6,962.7
OPERATING EXPENSES:
Salaries and related expenses	4,117.0	3,961.2	4,342.6
Office and general expenses	1,862.3	1,720.5	2,013.3
Restructuring and other reorganization-related charges, net	3.9	4.6	17.1
Total operating expenses	5,983.2	5,686.3	6,373.0
OPERATING INCOME	548.7	341.3	589.7
EXPENSES AND OTHER INCOME:
Interest expense	(139.7)	(155.6)	(211.9)
Interest income	28.7	35.0	90.6
Other income, net	12.9	11.7	3.1
Total (expenses) and other income	(98.1)	(108.9)	(118.2)
Income before income taxes	450.6	232.4	471.5
Provision for income taxes	171.3	90.1	156.6
Income of consolidated companies	279.3	142.3	314.9
Equity in net income of unconsolidated affiliates	1.9	1.1	3.1
NET INCOME	281.2	143.4	318.0
Net income attributable to noncontrolling interests	(20.1)	(22.1)	(23.0)
NET INCOME ATTRIBUTABLE TO IPG	261.1	121.3	295.0
Dividends on preferred stock	(15.6)	(27.6)	(27.6)
Benefit from preferred stock repurchased	25.7	0	0
Allocation to participating securities	0	(0.1)	(2.2)
NET INCOME AVAILABLE TO IPG COMMON STOCKHOLDERS	$ 271.2	$ 93.6	$ 265.2
Earnings per share available to IPG common stockholders:
Basic	$ 0.57	$ 0.2	$ 0.57
Diluted	$ 0.47	$ 0.19	$ 0.52
Weighted-average number of common shares outstanding:
Basic	473.6	468.2	461.5
Diluted	542.1	508.1	518.3

Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
ASSETS:
Cash and cash equivalents	$ 2,675.7	$ 2,495.2
Marketable securities	13.7	10.9
Accounts receivable, net of allowance of $63.1 and $66.0	4,317.6	3,756.5
Expenditures billable to clients	1,217.1	1,100.1
Other current assets	229.4	275.0
Total current assets	8,453.5	7,637.7
Furniture, equipment and leasehold improvements, net	454.3	490.1
Deferred income taxes	334.2	398.3
Goodwill	3,368.5	3,321.0
Other non-current assets	460.3	416.0
TOTAL ASSETS	13,070.8	12,263.1
LIABILITIES:
Accounts payable	4,474.5	3,828.9
Accrued liabilities	3,112.7	2,768.1
Short-term borrowings	114.8	93.4
Current portion of long-term debt	38.9	215.2
Total current liabilities	7,740.9	6,905.6
Long-term debt	1,583.3	1,638.0
Deferred compensation	486.1	503.2
Other non-current liabilities	402.4	402.2
TOTAL LIABILITIES	10,212.7	9,449.0
Commitments and contingencies (see Note 15)
Redeemable noncontrolling interests (see Note 5)	291.2	277.8
STOCKHOLDERS' EQUITY:
Preferred stock, no par value, shares authorized: 20.0 Series B shares issued and outstanding: 2010 - 0.2; 2009 - 0.5	221.5	525.0
Common stock, $0.10 par value, shares authorized: 800.0 shares issued: 2010 - 489.5; 2009 - 486.5 shares outstanding: 2010 - 489.1; 2009 - 486.1	47.5	47.1
Additional paid-in capital	2,456.8	2,441.0
Accumulated deficit	(63.7)	(324.8)
Accumulated other comprehensive loss, net of tax	(119.0)	(176.6)
Stockholders' equity before treasury stock	2,543.1	2,511.7
Less: Treasury stock, at cost: 0.4 shares	(14.1)	(14.0)
Total IPG stockholders' equity	2,529.0	2,497.7
Noncontrolling interests	37.9	38.6
TOTAL STOCKHOLDERS' EQUITY	2,566.9	2,536.3
TOTAL LIABILITIES AND EQUITY	$ 13,070.8	$ 12,263.1

Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Consolidated Balance Sheets
Accounts receivable, allowance	$ 63.1	$ 66.0
Preferred Stock, Par Value	$ 0	$ 0
Preferred Stock, Shares Authorized	20.0	20.0
Preferred Stock, Shares Issued	0.2	0.5
Preferred Stock, Shares Outstanding	0.2	0.5
Common Stock, Par Value	$ 0.1	$ 0.1
Common Stock, Shares Authorized	800.0	800.0
Common Stock, Shares Issued	489.5	486.5
Common Stock, Shares Outstanding	489.1	486.1
Treasury Stock, Shares	0.4	0.4

Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 281.2	$ 143.4	$ 318.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets and intangible assets	148.4	169.9	173.3
Provision for uncollectible receivables	10.7	19.3	17.0
Amortization of restricted stock and other non-cash compensation	50.0	49.5	80.1
Net amortization of bond (premiums) discounts and deferred financing costs	(4.4)	12.1	28.7
Loss on early extinguishment of debt	0.1	25.1	0
Deferred income tax provision	56.0	89.2	51.9
Other	24.9	13.4	29.0
Changes in assets and liabilities, net of acquisitions and dispositions, providing (using) cash:
Accounts receivable	(547.6)	179.5	283.9
Expenditures billable to clients	(122.8)	19.7	69.7
Other current assets	(0.2)	33.1	(19.2)
Accounts payable	646.3	(270.0)	6.8
Accrued liabilities	287.5	136.6	(147.7)
Other non-current assets and liabilities	(12.8)	(80.0)	(26.2)
Net cash provided by operating activities	817.3	540.8	865.3
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of businesses and investments, net of cash sold	53.6	11.1	27.9
Acquisitions, including deferred payments, net of cash acquired	(61.9)	(72.4)	(106.0)
Capital expenditures	(96.3)	(67.1)	(138.4)
Net (purchases) sales and maturities of short-term marketable securities	(2.5)	158.5	(154.3)
Purchases of investments	(2.2)	(1.9)	(35.6)
Other investing activities	0.8	1.2	2.1
Net cash (used in) provided by investing activities	(108.5)	29.4	(404.3)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of preferred stock	(265.9)	0	0
Payments of long-term debt	(217.3)	(783.4)	(201.8)
Proceeds from issuance of 10.00% Senior Notes due 2017	0	587.7	0
Capped call transaction costs	(22.8)	0	0
Issuance costs and fees	(9.8)	(19.2)	(11.3)
Net increase (decrease) in short term bank borrowings	17.4	0	(23.7)
Distributions to noncontrolling interests	(21.5)	(22.2)	(14.6)
Preferred stock dividends	(19.6)	(27.6)	(27.6)
Other financing activities	(8.2)	(2.3)	3.2
Net cash used in financing activities	(547.7)	(267.0)	(275.8)
Effect of foreign exchange rate changes on cash and cash equivalents	19.4	84.8	(92.9)
Net increase in cash and cash equivalents	180.5	388.0	92.3
Cash and cash equivalents at beginning of period	2,495.2	2,107.2	2,014.9
Cash and cash equivalents at end of period	$ 2,675.7	$ 2,495.2	$ 2,107.2

Consolidated Statements of Stockholders' Equity and Comprehensive Income (USD $) In Millions	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss, Net of Tax [Member]	Treasury Stock [Member]	Total IPG Stockholders' Equity [Member]	Noncontrolling Interests [Member]
Balance, value at Dec. 31, 2007	$ 2,275.1	$ 525.0	$ 45.9	$ 2,541.2	$ (741.1)	$ (118.6)	$ (14.0)	$ 2,238.4	$ 36.7
Balance, shares at Dec. 31, 2007			471.7
Net income	318.0				295.0			295.0	23.0
Foreign currency translation adjustments, net of tax	(164.3)					(161.2)		(161.2)	(3.1)
Changes in market value of securities available-for-sale, net of tax	(5.7)					(5.7)		(5.7)
Recognition of previously unrealized (gain) loss on securities available-for-sale, net of tax	3.0					3.0		3.0
Unrecognized losses (gains), transition obligation and prior service cost, net of tax	(36.0)					(36.0)		(36.0)
Total comprehensive income	115.0							95.1	19.9
Reclassifications related to redeemable noncontrolling interests	(11.7)								(11.7)
Noncontrolling interest transactions	7.7								7.7
Distributions to noncontrolling interests	(14.6)								(14.6)
Change in redemption value of redeemable noncontrolling interests	(175.5)			(175.5)				(175.5)
Capped call transaction costs	0
Preferred stock dividends	(27.6)			(27.6)				(27.6)
Stock-based compensation	82.1			82.1				82.1
Restricted stock, net of forfeitures, shares			4.8
Restricted stock, net of forfeitures, value	(11.2)		0.3	(11.5)				(11.2)
Other, shares			0.6
Other, value	4.9		0.2	4.8				5.0	(0.1)
Balance, value at Dec. 31, 2008	2,244.2	525.0	46.4	2,413.5	(446.1)	(318.5)	(14.0)	2,206.3	37.9
Balance, shares at Dec. 31, 2008			477.1
Net income	143.4				121.3			121.3	22.1
Foreign currency translation adjustments, net of tax	131.2					128.9		128.9	2.3
Changes in market value of securities available-for-sale, net of tax	0.5					0.5		0.5
Recognition of previously unrealized (gain) loss on securities available-for-sale, net of tax	(0.4)					(0.4)		(0.4)
Unrecognized losses (gains), transition obligation and prior service cost, net of tax	12.9					12.9		12.9
Total comprehensive income	287.6							263.2	24.4
Reclassifications related to redeemable noncontrolling interests	8.0			10.5				10.5	(2.5)
Noncontrolling interest transactions	(5.3)			(5.4)				(5.4)	0.1
Distributions to noncontrolling interests	(22.2)								(22.2)
Change in redemption value of redeemable noncontrolling interests	12.0			12.0				12.0
Capped call transaction costs	0
Preferred stock dividends	(27.6)			(27.6)				(27.6)
Stock-based compensation	51.8			51.8				51.8
Restricted stock, net of forfeitures, shares			8.9
Restricted stock, net of forfeitures, value	(17.1)		0.7	(17.8)				(17.1)
Other, shares			0.5
Other, value	4.9		0	4.0				4.0	0.9
Balance, value at Dec. 31, 2009	2,536.3	525.0	47.1	2,441.0	(324.8)	(176.6)	(14.0)	2,497.7	38.6
Balance, shares at Dec. 31, 2009			486.5
Net income	281.2				261.1			261.1	20.1
Foreign currency translation adjustments, net of tax	35.9					34.0		34.0	1.9
Changes in market value of securities available-for-sale, net of tax	0.6					0.6		0.6
Recognition of previously unrealized (gain) loss on securities available-for-sale, net of tax	(0.2)					(0.2)		(0.2)
Unrecognized losses (gains), transition obligation and prior service cost, net of tax	23.2					23.2		23.2
Total comprehensive income	340.7							318.7	22.0
Reclassifications related to redeemable noncontrolling interests	2.0			3.5				3.5	(1.5)
Noncontrolling interest transactions	(27.9)			(28.1)				(28.1)	0.2
Distributions to noncontrolling interests	(21.5)								(21.5)
Change in redemption value of redeemable noncontrolling interests	(11.0)			(11.0)				(11.0)
Repurchase of preferred stock	(267.6)	(303.5)		35.9				(267.6)
Capped call transaction costs	(22.8)			(22.8)				(22.8)
Preferred stock dividends	(15.6)			(15.6)				(15.6)
Stock-based compensation	53.0			53.0				53.0
Restricted stock, net of forfeitures, shares			2.2
Restricted stock, net of forfeitures, value	(15.7)		0.3	(16.0)				(15.7)
Other, shares			0.8
Other, value	17.0		0.1	16.9			(0.1)	16.9	0.1
Balance, value at Dec. 31, 2010	$ 2,566.9	$ 221.5	$ 47.5	$ 2,456.8	$ (63.7)	$ (119.0)	$ (14.1)	$ 2,529.0	$ 37.9
Balance, shares at Dec. 31, 2010			489.5

Consolidated Statements of Stockholders' Equity and Comprehensive Income (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statements of Stockholders' Equity and Comprehensive Income
Changes in market value of securities available-for-sale, tax	$ 0.1	$ 0.1	$ 1.4
Unrecognized losses (gains), transition obligation and prior service cost, tax	$ (5.5)	$ (4.4)	$ 10.1

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 1: 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 many of the world's largest advertisers. Comprehensive global services are critical to effectively serving these multinational clients, as well as our local clients in markets throughout the world, as they seek to build brands, increase sales of their products and services and gain market share in an increasingly complex and fragmented media landscape.

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its consolidated subsidiaries, most of which are wholly owned. Investments in companies over which we do not have control, but 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 have been made to the prior period financial statements to conform to the current year presentation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("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 advertising, marketing and communications programs in various media around the world. Our revenue is directly dependent upon the advertising, marketing and corporate communications requirements of our clients. Our revenue tends to be higher in the second half of the calendar year as a result of the holiday season and lower in the first half as a result of the post-holiday slow-down in client activity.

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. 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, straight-line (or monthly basis) or completed contract.

•

Fees are generally recognized as earned based on the proportional performance 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 as the final act is so significant in relation to the service transaction taken as a whole. Fees are also recognized upon delivery of projects if the terms of the contract identify individual discrete projects, or on the completed contract basis if any of the criteria in the authoritative guidance for revenue recognition were not satisfied prior to job completion or if the terms of the contract do not otherwise qualify for proportional performance or monthly basis recognition.

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 both qualitative and quantitative goals. 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. Incremental direct costs incurred related to contracts where revenue is accounted for on a completed contract basis are generally expensed as incurred. There are certain exceptions made for significant contracts or for certain agencies where the majority of the contracts are project-based and systems are in place to properly capture appropriate direct costs.

Substantially all 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 (primarily sales promotion and event, sports and entertainment marketing) where the key indicators suggest we act as a principal, we record the gross amount billed to the client as revenue and the related costs incurred as office and general expenses. Revenue is generally reported 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. Income or expense may also be realized in connection with settling vendor discount or credit liabilities that were established as part of the restatement we presented in our 2004 Annual Report on Form 10-K (the "2004 Restatement"). In these situations, and given the historical nature of these liabilities, we have recorded such items as other income or expense as we do not consider these to be part of current operating results. We release certain of these credit liabilities when the statute of limitations has lapsed, unless the liabilities are associated with customers with whom we are in the process of settling such liabilities. These amounts are reported in other income, net.

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.

As of December 31, 2010 and 2009, we held restricted cash of $4.7 and $44.2, respectively, included in other current assets. Restricted cash primarily represents cash equivalents that are maintained on behalf of our clients and are legally restricted for a specified business purpose.

Short-Term Marketable Securities

Short-term marketable securities include investment-grade time deposits, commercial paper and government securities with maturities greater than three months but less than twelve months. These securities are classified as available-for-sale and are carried at fair value with net unrealized gains and losses reported as a component of accumulated other comprehensive loss, which is a component of stockholders' equity. The cost of securities is determined based upon the average cost of the securities sold.

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.

Investments

Our investments in publicly traded companies over which we do not exert a significant influence are classified as available-for-sale. These investments are 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 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. We evaluate the terms of our derivative instruments to determine if they are recorded on our balance sheet in equity or as an asset or liability that gets subsequently adjusted in earnings based on fair value each reporting period. We evaluate our derivative instruments for hedge accounting both at inception and throughout the hedge period. We recognize the changes in fair value of the interest rate swap agreements as well as the changes in the fair value of the underlying debt in other income, net.

Furniture, Equipment and Leasehold Improvements

Furniture, equipment and leasehold improvements 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, equipment and computer software costs, 10 to 35 years for buildings and the shorter of the useful life or the remaining lease term for leasehold improvements.

Goodwill and Other Intangible Assets

We have accounted for our business combinations using the acquisition accounting method beginning in 2009, while we utilized the purchase accounting method in prior years. Both accounting methods require the fair value of each acquisition to be allocated to the underlying net assets based on their respective estimated fair values and the remainder allocated to goodwill and other intangible assets. The acquisition method requires the noncontrolling interests, if any, to be recorded at fair value and goodwill and other intangibles to be recorded as if we acquired the entire business, proportionately allocated between the controlling and noncontrolling owner. The purchase accounting method requires goodwill and other intangibles to be recorded based on our ownership interest in the business we acquired. 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 2010 annual impairment testing. Our reporting unit structure changed from 2009 due to the movement of four reporting units into other existing reporting units based on operational decisions by management during 2010.

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.

The authoritative guidance for goodwill specifies a two-step process for goodwill impairment testing and measuring the magnitude of any impairment. The first step of the impairment test is a comparison of the fair value of each reporting unit to its carrying value, including goodwill. The sum of the fair values of all our reporting units is 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 first step of the impairment test has failed and the magnitude of any goodwill impairment is determined under the second step, which is a comparison of the implied fair value of a reporting unit's goodwill to its carrying value. Goodwill of a reporting unit is impaired when its carrying value exceeds its implied fair value. Impaired goodwill is written down to its implied fair value with a charge to expense in the period the impairment is identified.

The fair value of a reporting unit for 2010 and 2009 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.

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, which is a component of stockholders' equity. Currency transaction gains or losses arising from transactions in currencies other than the functional currency are included in office and general expenses.

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 denominated 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 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 deferred tax assets will not be realized. We evaluate our tax positions using a "more likely than not" recognition threshold and then apply a measurement assessment to those positions that meet the recognition threshold. 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.

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 are contingent upon achieving projected operating performance targets and satisfying other conditions specified in the related agreements and are subject to revisions as the earn-out periods progress. 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 will also impact additional paid-in capital, but will not impact net income. Adjustments as a result of currency translation will affect the redeemable noncontrolling interest balance, but do not impact 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 adjusted to exclude, if dilutive, preferred stock dividends, allocation to participating securities, interest expense related to potentially dilutive securities calculated using the effective interest rate and benefit from preferred stock repurchased, 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 or debt obligations were exercised or converted into common stock. 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 or "if-converted" 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 and any tax benefits credited to additional paid-in-capital related to the exercise. 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 these reductions to net income available to IPG common stockholders (used to calculate EPS) is limited to cumulative prior-period reductions. For the years ended December 31, 2010, 2009 and 2008, 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.

Earnings Per Share

12 Months Ended

Dec. 31, 2010

Earnings Per Share

Earnings Per Share

Note 2: Earnings Per Share

The following sets forth basic and diluted earnings per common share available to IPG common stockholders.


	Years ended December 31,
	2010			2009		2008
Net income available to IPG common stockholders – basic	$	271.2		$	93.6	$	265.2
Adjustments: Effect of dilutive securities
Interest on 4.25% Notes		1.4			1.4		1.4
Interest on 4.75% Notes		4.0			0.0		4.0
Benefit from preferred stock repurchased ¹		(21.7	)		0.0		0.0

Net income available to IPG common stockholders—diluted	$	254.9		$	95.0	$	270.6


Weighted-average number of common shares outstanding – basic		473.6			468.2		461.5
Add: Effect of dilutive securities
Restricted stock, stock options and other equity awards		11.3			7.7		8.5
4.25% Notes		32.2			32.2		32.2
4.75% Notes		16.1			0.0		16.1
Preferred stock repurchased		8.9			0.0		0.0

Weighted-average number of common shares outstanding – diluted		542.1			508.1		518.3


Earnings per share available to IPG common stockholders – basic	$	0.57		$	0.20	$	0.57
Earnings per share available to IPG common stockholders – diluted	$	0.47		$	0.19	$	0.52

For the year ended December 31, 2010, the benefit from the preferred stock repurchased is excluded from net income available to IPG common stockholders for purposes of calculating diluted earnings per share since the associated common shares, if converted, were dilutive. In addition, the benefit is also net of $4.0 of preferred dividends that were declared during the first quarter of 2010 and associated with the preferred stock repurchased. See Note 4 for further information.

For the years ended December 31, 2009 and 2008, we calculated basic EPS using the two-class method. The two-class method was required as our 4.50% Convertible Senior Notes due 2023 (the "4.50% Notes") qualified as participating securities, having the right to receive dividends or dividend equivalents should dividends be declared on common stock. Under this method, earnings for the period (after deduction for contractual preferred stock dividends) was allocated on a pro-rata basis to the common stockholders and to the holders of participating securities based on their right to receive dividends. We retired the remaining outstanding aggregate principal amount of the 4.50% Notes in the fourth quarter of 2009.

The following table presents the potential shares excluded from diluted earnings per share because the effect of including these potential shares would be antidilutive.


	Years ended December 31,
	2010		2009		2008
4.75% Notes		0.0		16.1		0.0
4.50% Notes		0.0		0.6		3.9
Preferred stock outstanding		16.2		38.4		38.4

Total		16.2		55.1		42.3

Securities excluded from the diluted earnings per share calculation because the exercise price was greater than the average market price:
Stock options ¹		15.6		21.2		24.7
Warrants ²		0.0		67.9		67.9

¹	These options are outstanding at the end of the respective year. In any period in which the exercise price is less than the average market price, these options have the potential to be dilutive and application of the treasury stock method would reduce this amount.

²	The potential dilutive impact of the warrants is based upon the difference between the market price of one share of our common stock and the stated exercise prices of the warrants, adjusted to reflect the period during which the warrants were outstanding. The warrants expired in June 2009.

Debt and Credit Arrangements

12 Months Ended

Dec. 31, 2010

Debt And Credit Arrangement

Debt and Credit Arrangements

Note 3: Debt and Credit Arrangements

Long-Term Debt

A summary of the carrying amounts and fair values of our long-term debt is listed below.


				December 31,
				2010				2009
	Effective Interest Rate			Book Value		Fair Value ²		Book Value		Fair Value ²
Floating Rate Senior Unsecured Notes due 2010		8.65	%	$	0.0	$	0.0	$	211.7	$	210.5
7.25% Senior Unsecured Notes due 2011		7.25	%¹		36.3		37.0		36.3		36.2
6.25% Senior Unsecured Notes due 2014 (less unamortized discount of $0.4)		6.29	%¹		353.3		378.0		351.5		332.5
10.00% Senior Unsecured Notes due 2017 (less unamortized discount of $10.6)		10.38	%		589.4		705.0		588.3		666.0
4.75% Convertible Senior Notes due 2023 (plus unamortized premium of $5.0)		3.50	%		205.0		235.0		207.2		213.3
4.25% Convertible Senior Notes due 2023 (plus unamortized premium of $17.4)		0.58	%		417.4		444.4		431.9		416.4
Other notes payable and capitalized leases					20.8				26.3

Total long-term debt					1,622.2				1,853.2
Less: current portion ³					38.9				215.2

Long-term debt, excluding current portion				$	1,583.3			$	1,638.0

1	Excludes the effect of related gains/losses on interest rate swaps.

2	Fair values are derived from trading quotes by institutions making a market in the securities and estimations of value by those institutions using proprietary models.

On August 15, 2011 our 7.25% Senior Unsecured Notes due 2011 (the "2011 Notes") mature. Therefore we included these notes in current portion of long-term debt on our December 31, 2010 Consolidated Balance Sheet. On November 15, 2010 our Floating Rate Senior Unsecured Notes due 2010 (the "2010 Notes") matured. Therefore we included these notes in current portion of long-term debt on our December 31, 2009 Consolidated Balance Sheet.

Annual maturities are scheduled as follows based on the book value as of December 31, 2010.


2011	$	38.9
2012 ¹		2.0
2013 ²		16.1
2014 ³		353.4
2015		0.1
Thereafter		1,211.7

Total long-term debt	$	1,622.2

1	Holders of our 4.25% Convertible Senior Notes due 2023 (the "4.25% Notes") may require us to repurchase their notes for cash at par in March 2012.

2	Holders of our 4.75% Convertible Senior Notes due 2023 (the "4.75% Notes") may require us to repurchase their notes for cash, stock or a combination, at our election, at par in March 2013.

The 6.25% Senior Unsecured Notes due 2014 (the "2014 Notes") are redeemable in whole or in part, at any time at our option at a redemption price which is equal to the greater of i) 100% of the aggregate principal amount of the notes to be redeemed, or ii) the sum of the present values of the remaining scheduled payments of principal and interest. The redemption price will also include any accrued and unpaid interest.

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. We also have recorded debt issuance costs related to certain financing transactions in other assets in our Consolidated Balance Sheets, which are also amortized through interest expense. As of December 31, 2010 and 2009, we had unamortized debt issuance costs of $28.3 and $30.3, respectively.

Our debt securities include covenants that, among other things, limit our liens and the liens of our consolidated subsidiaries, but do not require us to maintain any financial ratios or specified levels of net worth or liquidity.

Floating Rate Senior Unsecured Notes due 2010

In April 2010, we repurchased $21.4 aggregate principal amount of our 2010 Notes for $21.5 in cash, which included accrued and unpaid interest. In November 2010 the remaining $192.3 aggregate principal amount of our 2010 Notes matured, and we paid $193.5 in cash, including accrued and unpaid interest.

Convertible Senior Notes

Conversion Features

Our 4.25% and 4.75% Notes (the "Convertible Notes") are convertible into our common stock at a conversion price of $12.42 per share, subject to adjustment in specified circumstances, including any payment of cash dividends on our common stock. The conversion rates of our Convertible Notes are also subject to adjustment for certain events arising from stock splits and combinations, stock dividends and certain other actions by us that modify our capital structure. The Convertible Notes provide for an additional "make-whole" adjustment to the conversion rate in the event of a change of control meeting specified conditions.

Our Convertible Notes are convertible at any time if the average price of our common stock for 20 trading days immediately preceding the conversion date is greater than or equal to a specified percentage of the conversion price; this percentage was equal to 116.5% in 2010 and declines 0.5% each year until it reaches 110% at maturity. Each series of our Convertible Notes is also convertible, regardless of the price of our common stock, if: (i) we call that series of Convertible Notes for redemption; (ii) we make specified distributions to shareholders; (iii) we become a party to a consolidation, merger or binding share exchange pursuant to which our common stock would be converted into cash or property (other than securities); or (iv) the credit ratings assigned to that series of Convertible Notes by any two of Moody's Investor Service, Standard and Poor's and Fitch Ratings are lower than Ba2, BB and BB, respectively, or that series of Convertible Notes is no longer rated by at least two of these ratings services. As of December 31, 2010, our Convertible Notes were not convertible based on our credit ratings. As a result of certain conversion features our Convertible Notes contain embedded derivatives whose fair values as of December 31, 2010 are negligible. Our Convertible Notes are also convertible, whether or not the above conditions are met, from February 15, 2023 to March 15, 2023. The Convertible Notes are not considered securities with participation rights in earnings available to IPG common stockholders as there are no features attached to these securities that allow holders to participate in our undistributed earnings.

Repurchase / Redemption Options

Holders of our Convertible Notes may require us to repurchase the Convertible Notes on certain dates for cash only, and on other dates for cash or our common stock or a combination of cash and common stock, at our election. Additionally, investors may require us to repurchase our Convertible Notes in the event of certain change of control events that occur prior to dates listed in the table below, for cash or our common stock or a combination of cash and common stock, at our election. At our option, we may redeem our Convertible Notes on or at any time after certain dates for cash. The redemption price in each of these instances will be 100% of the principal amount of the Convertible Notes being redeemed, plus accrued and unpaid interest, if any. The following table details when the repurchase and redemption options occur for our 4.25% and 4.75% Notes.


	4.25% Notes		4.75% Notes
Repurchase options
For cash		3/15/2012
For cash, common stock or combination		1) 3/15/2015		1) 3/15/2013
		2) 3/15/2018		2) 3/15/2018
Change of control events occurring prior to		3/15/2012		3/15/2013
Redemption options
For cash		3/15/2012		3/15/2013

Capped Call

We purchased capped call options in November 2010 to hedge the risk of price appreciation on the 16.1 shares of our common stock into which our 4.75% Notes are convertible. The options give us the right to purchase up to 16.1 shares of our common stock at a strike price of $12.42 per share (subject to adjustments upon certain events with respect to us or our common stock), except that the economic value of the net proceeds of exercising the options will not exceed the difference between the strike price and a cap price of $18.26 per share. Subject to certain limitations, we may elect settlement of the options to occur in cash or in shares. The options will expire on April 2, 2013. We paid an aggregate premium of $22.8 for the options, which was recorded as a reduction to additional paid-in capital in the Consolidated Balance Sheet.

Senior Notes due 2017

On June 15, 2009 we issued $600.0 in aggregate principal amount of 10.00% Senior Unsecured Notes due 2017 (the "2017 Notes") at 97.958% of par through a private placement. The 2017 Notes were reflected on our Consolidated Balance Sheet at their fair value at issuance, or $587.7. The discount of $12.3 is amortized through the maturity date, July 15, 2017, using the effective interest method. Interest is payable semi-annually in arrears on January 15^th and July 15^th of each year, commencing on January 15, 2010. Capitalized direct fees of $15.8 related to the issuance of the 2017 Notes are amortized in interest expense through the maturity date. The 2017 Notes include covenants that are consistent with those of our other debt securities.

At any time prior to July 15, 2013, we may, at our option, redeem all or some of the 2017 Notes at their principal amount plus a make-whole premium and accrued and unpaid interest. At any time on or after July 15, 2013, we may, at our option, redeem the 2017 Notes, in whole or in part, at the following redemption prices, expressed as a percentage of principal amount, plus accrued and unpaid interest, if redeemed during the twelve-month period beginning on July 15^th of the years indicated below.


Year	Percentage of Principal
2013		105.00	%
2014		102.50	%
2015 and thereafter		100.00	%

If we have a change of control event, each holder of the 2017 Notes will have the right to require us to repurchase all or any part of that holders' notes for cash equal to 101.00% of the aggregate principal amount of the 2017 Notes repurchased plus accrued and unpaid interest to the date of repurchase.

We used the proceeds of the 2017 Notes primarily to fund our tender offers, described below.

Tender Offers and Redemption

On June 8, 2009, we launched tender offers to purchase, for cash, (i) any and all of our $250.0 5.40% Senior Unsecured Notes due 2009 (the "2009 Notes") and (ii) up to $500.0 in aggregate principal amount of our outstanding 2011 Notes and 2010 Notes. Our cumulative purchases of the 2009 Notes, 2011 Notes and the 2010 Notes through the tender offers and the subsequent redemption are summarized below.


	Aggregate Principal Amount		Cash Payment¹		Total Loss
Tender Offers
2009 Notes ²	$	214.0	$	217.3	$	(3.0	)
2011 Notes ³		463.7		494.2		(21.5	)
2010 Notes ³		36.3		36.4		(0.9	)

Redemption
2009 Notes ⁴	$	36.0	$	37.0	$	(0.3	)

1	Cash payment includes accrued and unpaid interest.

2	We used cash on hand to purchase the tendered 2009 Notes.

3	We used the proceeds from the offering of the 2017 Notes first to purchase tendered 2011 Notes, and then to purchase on a pro-rated basis tendered 2010 Notes.

4	Following the tender offers, in September 2009, we redeemed all of our 2009 Notes that remained outstanding, which were scheduled to mature on November 15, 2009.

The settlements of our tender offers and redemption were treated as a debt extinguishment because we were relieved of our debt obligation upon settlement. We compared the proportionate share of the net carrying amount, which includes the carrying amount due at maturity, adjusted for unamortized discounts, debt issuance costs and gains and losses on interest rate swaps, if applicable, to the reacquisition price. Charges as a result of our debt extinguishments are reflected in other income, net in the Consolidated Statements of Operations.

Credit Agreements

We maintain a committed corporate credit facility and uncommitted credit facilities with various banks that permit borrowings at variable interest rates. As of December 31, 2010 and 2009, there were no borrowings under our committed corporate credit facility. However, there were borrowings under the uncommitted facilities made by several of our international subsidiaries. We have guaranteed the repayment of some of these borrowings made by certain subsidiaries. The weighted-average interest rate on outstanding balances under the uncommitted credit facilities as of December 31, 2010 and 2009 was approximately 5.0% and 4.0%, respectively. A summary of our credit facilities is presented below.


	December 31,
	2010								2009
	Total Facility		Amount Outstanding		Letters of Credit		Total Available		Total Facility		Amount Outstanding		Letters of Credit		Total Available
Committed credit agreement	$	650.0	$	0.0	$	16.2	$	633.8	$	335.0	$	0.0	$	94.5	$	240.5
Uncommitted credit agreements	$	455.2	$	114.8	$	0.1	$	340.3	$	413.2	$	93.4	$	0.1	$	319.7

In April 2010, we amended and restated our credit agreement originally dated as of July 18, 2008 (as amended and restated as of April 23, 2010, the "Credit Agreement"). The amendments increased commitments of the lenders to $650.0 from $335.0, added five new lenders and extended the Credit Agreement's expiration to July 18, 2013. 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 of $650.0 or the equivalent in other currencies. The aggregate available amount of letters of credit outstanding may decrease or increase, subject to a sublimit on letters of credit of $200.0 or the equivalent in other currencies. Our obligations under the Credit Agreement are unsecured.

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. Based on our credit ratings as of December 31, 2010, the applicable margin is 1.25% for base rate advances and 2.25% 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 of 0.75% on the aggregate lending commitment under the Credit Agreement.

The Credit Agreement includes covenants that, among other things, limit our liens and the liens of our consolidated subsidiaries and limit subsidiary debt. The Credit Agreement also contains covenants, that subject to certain exceptions, restrict us from making cash acquisitions, making capital expenditures, repurchasing our common stock and declaring or paying cash dividends on our common stock, in excess of an aggregate basket of $600.0 in any fiscal year, of which we may carry forward unused amounts of up to $200.0 to the next fiscal year, provided that (a) if we have a leverage ratio of greater than 2.75 to 1 at the end of any fiscal year, we may not carry forward unused amounts, and cash common stock dividends and net share repurchases not otherwise permitted will be restricted to $400.0 for the next fiscal year, and (b) if we have a leverage ratio of 2.75 to 1 or less at the end of any fiscal year, in the next fiscal year the aggregate basket will be $800.0 and cash common stock dividends and net share repurchases not otherwise permitted may not exceed $600.0. In addition, the aggregate basket in any fiscal year, but not the amount for cash common stock dividends and net share repurchases, may be increased, subject to certain limitations, by up to $100.0 of net cash proceeds from dispositions made during such fiscal year. The Credit Agreement also contains financial covenants.

We were in compliance with all applicable restrictive and financial covenants in the Credit Agreement as of December 31, 2010. The financial covenants in the Credit Agreement require that we maintain, as of the end of each fiscal quarter listed below, the following financial covenants, as defined, for the four quarters then ended.


	Q4 2010			Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012			Q3 2012 & Thereafter
(i) Interest coverage ratio (not less than): ¹		4.00	x		4.25	x		4.50	x		5.00	x		5.00	x		5.50	x		5.50	x		5.75	x
(ii) Leverage ratio (not greater than): ²		3.25	x		3.25	x		3.25	x		3.00	x		2.75	x		2.75	x		2.50	x		2.50	x
(iii) Minimum EBITDA (not less than):	$	550.0		$	550.0		$	550.0		$	550.0		$	600.0		$	600.0		$	600.0		$	600.0

1	An interest coverage ratio of EBITDA, as defined in the Credit Agreement, to net interest expense plus cash dividends on convertible preferred stock for the four quarters then ended.

2	A leverage ratio of debt as of the last day of such fiscal quarter to EBITDA, as defined in the Credit Agreement, for the four quarters then ended.

In December 2009, we entered into a letter of credit agreement (the "2009 LC Agreement") to provide for the issuance of standby letters of credit denominated in Pound Sterling. The face amount of letters of credit outstanding under the 2009 LC Agreement is subject to an aggregate limit at any one time of £45.0 (equivalent as of December 31, 2010 to $69.2). In January 2010, we transferred letters of credit outstanding under the Credit Agreement to this facility to provide additional liquidity under the Credit Agreement. As of December 31, 2010 we did not have any letters of credit outstanding under the 2009 LC Agreement. We terminated the 2009 LC Agreement as of December 31, 2010 as we were no longer required to issue letters of credit associated with various projects in the United Kingdom.

Interest Rate Swaps

We may enter into interest rate swap agreements in order to maintain a mix of fixed and floating rate debt. In the third quarter of 2009, we entered into a series of interest rate swap agreements related to our 2014 Notes to effectively convert $250.0 notional amount of our $350.0 2014 Notes from fixed rate to floating rate debt. In February 2010, we terminated all of the interest rate swaps related to our 2014 Notes. We received a total of $5.4 in cash, which included accrued and unpaid interest. The related gain of $3.9 is being amortized as a reduction to interest expense over the remaining term of the notes, resulting in an annual effective interest rate of 6.0%.

Cash Poolings

We aggregate our net 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 setoff against amounts the other agencies owe the bank, and the bank provides for overdrafts as long as the net balance for all the 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, 2010 and 2009 the amounts netted were $916.1 and $946.5, respectively.

Convertible Preferred Stock	12 Months Ended
Convertible Preferred Stock	Dec. 31, 2010
Convertible Preferred Stock
Convertible Preferred Stock	Note 4: Convertible Preferred Stock In April 2010, we launched a tender offer to purchase for cash up to 370,000 shares (actual number) of our outstanding 525,000 shares (actual number) 5¹/4% Series B Cumulative Convertible Perpetual Preferred Stock (the "Series B Preferred Stock"). In May 2010, we purchased 303,526 shares (actual number) of our Series B Preferred Stock that were validly tendered for cash for an aggregate purchase price of $267.6. The aggregate purchase price was calculated as the number of shares tendered multiplied by the purchase price of $869.86 per share plus unpaid dividends of $1.9, which were prorated for the period the tendered shares were outstanding, and transaction costs directly associated with the repurchase. The carrying value of the tendered shares was $293.3 and was determined based on the number of shares tendered multiplied by the $1,000 per share liquidation preference less $10.2, which is the pro-rata amount of issuance costs associated with the original issuance of the preferred stock. A benefit of $25.7, representing the excess carrying value of the tendered shares over consideration from the repurchase, was recorded as an adjustment to additional paid-in capital. Moreover, we recorded an adjustment to additional paid-in capital of $10.2 for the pro-rata amount of issuance costs. Each share of our Series B Preferred Stock has a liquidation preference of $1,000 per share and is convertible at the option of the holder at any time into 73.1904 shares of our common stock, subject to adjustment upon the occurrence of certain events, which represents a conversion price of $13.66. On or after October 15, 2010, each share of the Series B Preferred Stock may be converted at our option if the closing price of our common stock multiplied by the conversion rate then in effect equals or exceeds 130% of the liquidation preference of $1,000 per share for 20 trading days during any consecutive 30 trading day period. Holders of the Series B Preferred Stock will be entitled to an adjustment to the conversion rate if they convert their shares in connection with a fundamental change satisfying certain specified conditions. The Series B Preferred Stock is junior to all of our existing and future debt obligations and senior to our common stock with respect to payments of dividends and rights upon liquidation, winding up or dissolution, to the extent of the liquidation preference of $1,000 per share. The terms of our Series B Preferred Stock do not permit us to pay dividends on our common stock unless all accumulated and unpaid dividends on the Series B Preferred Stock have been or contemporaneously are declared and paid, or provision for the payment thereof has been made. We declared dividends of $52.50 per share, or $15.6, $27.6 and $27.6, on our Series B Preferred Stock during 2010, 2009 and 2008, respectively. Regular quarterly dividends, if declared, are $13.125 per share. Dividends on each share of Series B Preferred Stock are payable quarterly in cash or, if certain conditions are met, in common stock, at our option, on January 15, April 15, July 15 and October 15, or the next business date if these dates fall on the weekend or a holiday, of each year. Dividends on our Series B Preferred Stock are cumulative from the date of issuance and are payable on each payment date to the extent that we have assets that are legally available to pay dividends and our Board of Directors or an authorized committee of our Board declares a dividend payable. The terms of the Series B Preferred Stock include an embedded derivative instrument, the fair value of which as of December 31, 2010 and 2009 was negligible. The Series B Preferred Stock is not considered a security with participation rights in earnings available to IPG common stockholders due to the contingent nature of the conversion feature of these securities.

Acquisitions

12 Months Ended

Dec. 31, 2010

Acquisitions

Acquisitions

Note 5: Acquisitions

We continue to evaluate strategic opportunities to grow and to increase our ownership interests in current investments, particularly in our digital and marketing services offerings, and to expand our presence in high-growth and key strategic world markets. Our acquisitions provide for an initial payment at the time of closing, and certain of these acquisitions include additional contingent purchase price payments based on the future performance of the acquired entity. In addition, 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.

For acquisitions that were completed on or after January 1, 2009 we record deferred payment and redeemable noncontrolling interest amounts on our Consolidated Balance Sheets based on their acquisition date fair value. Deferred payments are adjusted quarterly based on their estimated fair value with any changes impacting operating income. Deferred payments are recorded on a discounted basis and the related accretion expense is recognized in operating income between the acquisition date and the deferred payment date. Redeemable noncontrolling interests are adjusted quarterly with any changes impacting additional paid-in capital. See Note 15 for further information on contingent acquisition obligations. For acquisitions completed prior to January 1, 2009 contingent acquisition obligations were not recorded on our Consolidated Balance Sheets until the obligation was satisfied and consideration was determinable and distributable. At that point, we recorded the fair value of this consideration as an additional cost of the acquired entity. Certain acquisitions contained deferred payments that were fixed and determinable on the acquisition date. In such cases, we recognized this consideration as an additional cost of the acquired entity on the acquisition date and recorded a liability for the future payment.

The following table presents changes in redeemable noncontrolling interests.


	Years ended December 31,
	2010			2009			2008
Balance at beginning of period	$	277.8		$	288.4		$	101.2
Noncontrolling interest balance related to redeemable noncontrolling interests		1.5			2.5			11.7
Changes in redemption value of redeemable noncontrolling interests:
Additions		31.9			0.5			203.2
Redemptions and reclassifications		(30.1	)		(5.3	)		(17.1	)
Redemption value adjustments¹		10.1			(8.3	)		(10.6	)

Balance at end of period	$	291.2		$	277.8		$	288.4

1	Redeemable noncontrolling interests are reported at their estimated redemption value in each reporting period, but not less than their initial fair value. Any adjustment to the redemption value impacts additional paid-in capital, except adjustments as a result of currency translation.

During 2010, we completed five acquisitions, of which four are included in the Integrated Agency Networks ("IAN") operating segment and one is included in the Constituency Management Group ("CMG") operating segment. The most significant were: a) Delaney Lund Knox Warren ("DLKW"), a premier full-service communications agency in the United Kingdom, for a total payment of approximately $43.0 in cash, and b) CuboCC, a new media and digital marketing service company in Brazil. During 2010, we recorded $63.3 of goodwill and intangible assets related to our acquisitions.

During 2009, we completed two acquisitions, all of which are included in the IAN operating segment.

During 2008, we completed ten acquisitions, of which nine are included in the IAN operating segment and one is included in the CMG operating segment. The most significant were: a) the remaining interests in an entertainment-marketing agency in North America in which we previously held a 40% interest, b) a digital advertising and communications agency in the United Kingdom, c) a marketing services agency in France, d) a 51% interest in a digital marketing agency in North America, and e) an additional 31.1% interest in a full-service advertising agency in the Middle East which increased our total interest in that agency to 51%.

For companies acquired, we make estimates of the fair values of the assets and liabilities for consolidation. The purchase price in excess of the estimated fair value of the tangible net assets acquired was allocated to identifiable intangible assets and goodwill. Due to the characteristics of advertising, specialized marketing and communication services companies, our acquisitions typically 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 of these acquisitions is allocated to identifiable intangible assets, primarily customer lists, trade names and goodwill.

For all of our acquisitions, if deferred payments and purchases of additional interests after the effective date of purchase are contingent upon the future employment of the former owners, then we recognize these payments as compensation expense. Compensation expense is determined based on the terms and conditions of the respective acquisition agreements and employment terms of the former owners of the acquired businesses. This future expense will not be allocated to the assets and liabilities acquired and is amortized over the required employment terms of the former owners.

The results of operations of our acquired companies were included in our consolidated results from the closing date of each acquisition. We made stock payments of $1.0 related to acquisitions initiated during 2008. We did not make any stock payments related to acquisitions in 2009 or 2010. Details of cash paid for current and prior years' acquisitions are listed below.


	Years ended December 31,
	2010			2009			2008
Cash paid for current year acquisitions:
Cost of investment	$	47.1		$	3.8		$	104.2
Operating expense¹		0.0			0.0			3.0
Cash paid for prior-year acquisitions:
Cost of investment		42.6			74.6			23.9
Operating expense¹		3.0			0.0			0.0
Less: cash acquired		(3.1	)		(0.1	)		(22.1	)

Total cash paid for acquisitions²	$	89.6		$	78.3		$	109.0

1	Represents cash payments made that were contingent upon the future employment of the former owners of companies.

Includes payments of $24.7 and $5.9 for the years ended December 31, 2010 and 2009, respectively, relating to transactions with consolidated subsidiaries where we have increased our ownership interests, which are classified within the financing section of the Consolidated Statements of Cash Flows, rather than the investing section.

Supplementary Data

12 Months Ended

Dec. 31, 2010

Supplementary Data

Supplementary Data

Note 6: Supplementary Data

Valuation and Qualifying Accounts – Allowance for Uncollectible Accounts Receivable


	Years ended December 31,
	2010			2009			2008
Balance at beginning of period	$	66.0		$	63.9		$	61.8
Charges to costs and expenses		10.7			19.3			17.0
(Reversals) charges to other accounts¹		(0.4	)		(2.8	)		7.4
Deductions:
Dispositions		(0.5	)		(0.2	)		(0.2	)
Uncollectible accounts written off		(11.8	)		(16.5	)		(17.1	)
Foreign currency translation adjustment		(0.9	)		2.3			(5.0	)

Balance at end of period	$	63.1		$	66.0		$	63.9

1	Amounts primarily relate to allowance for doubtful accounts of acquired and newly consolidated companies.

Furniture, Equipment and Leasehold Improvements, net


	December 31,
	2010			2009
Furniture and equipment	$	881.5		$	886.2
Leasehold improvements		605.4			604.6
Land and buildings		114.5			118.4

		1,601.4			1,609.2
Less: accumulated depreciation		(1,147.1	)		(1,119.1	)

Total furniture, equipment and leasehold improvements, net	$	454.3		$	490.1

The total depreciation and amortization expense for the years ended December 31, 2010, 2009 and 2008 was $129.0, $150.6 and $158.9, respectively.

Accrued Liabilities


	December 31,
	2010		2009
Media and production expenses	$	2,332.2	$	2,111.1
Salaries, benefits and related expenses		470.0		405.7
Office and related expenses		62.0		59.5
Acquisition obligations		63.5		16.6
Interest		41.5		46.6
Professional fees		24.6		20.4
Other		118.9		108.2

Total accrued liabilities	$	3,112.7	$	2,768.1

2004 Restatement Liabilities

As part of the 2004 Restatement, we recognized liabilities related to vendor discounts and credits where we had a contractual or legal obligation to rebate such amounts to our clients or vendors. Reductions to these liabilities are achieved through settlements with clients and vendors, but also may occur if the applicable statute of limitations in a jurisdiction has lapsed. As of December 31, 2010 and 2009, we had vendor discounts and credit liabilities of $82.5 and $106.4, respectively, related to the 2004 Restatement.

Other Income, net

Results of operations include certain items which are not directly associated with our revenue-producing operations.


	Years ended December 31,
	2010			2009			2008
Net loss on early extinguishment of debt	$	(0.1	)	$	(25.1	)	$	0.0
Gains (losses) on sales of businesses and investments		4.3			10.2			(3.1	)
Vendor discounts and credit adjustments		12.7			24.4			20.7
Litigation settlement		0.0			0.0			(12.0	)
Other (expense) income, net		(4.0	)		2.2			(2.5	)

Total other income, net	$	12.9		$	11.7		$	3.1

Net Loss on Early Extinguishment of Debt – During 2009, we recorded a net charge of $25.1 primarily related to the settlement of our tender offers for the 2009 Notes, the 2011 Notes and the 2010 Notes.

Sales of Businesses and Investments – This item primarily includes realized gains and losses relating to the sales of businesses, cumulative translation adjustment balances from the liquidation of entities and sales of marketable securities and investments in publicly traded and privately held companies in our Rabbi Trusts. During 2010, we recognized a gain relating to the sale of a business in the domestic market within our CMG segment, which was partially offset by a loss recognized relating to the sale of one our European businesses within our IAN segment. During 2009, we realized a gain of $15.2 related to the sale of an investment in our Rabbi Trusts, which was partially offset by losses realized from the sale of various businesses.

Vendor Discounts and Credit Adjustments – We are in the process of settling our liabilities related to vendor discounts and credits established as part of the 2004 Restatement. These adjustments reflect the reversal of certain of these liabilities as a result of settlements with clients or vendors or where the statute of limitations has lapsed.

Litigation Settlement – During May 2008, the SEC concluded its investigation that began in 2002 into our financial reporting practices, resulting in a settlement charge of $12.0.

Supplemental Cash Flow Information


	Years ended December 31,
	2010		2009		2008
Cash paid for interest	$	139.8	$	138.6	$	183.2
Cash paid for income taxes, net of $28.7, $55.0 and $12.9 of refunds in 2010, 2009 and 2008, respectively		87.3		57.3		104.4

Intangible Assets

12 Months Ended

Dec. 31, 2010

Intangible Assets

Intangible Assets

Note 7: 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, 2010 and 2009 are listed below.


	IAN			CMG			Total ¹
Balance as of December 31, 2008	$	2,790.0		$	430.9		$	3,220.9
Current year acquisitions		5.2			0.0			5.2
Contingent and deferred payments for prior acquisitions		14.2			0.0			14.2
Other		76.2			4.5			80.7

Balance as of December 31, 2009	$	2,885.6		$	435.4		$	3,321.0

Current year acquisitions		37.5			1.3			38.8
Contingent and deferred payments for prior acquisitions		34.4			0.7			35.1
Other		(10.6	)		(15.8	)		(26.4	)

Balance as of December 31, 2010	$	2,946.9		$	421.6		$	3,368.5

1	For all periods presented we have not recorded a goodwill impairment charge.

See Note 1 for information regarding our annual impairment methodology.

Other Intangible Assets

Included in other intangible assets are assets with indefinite lives not subject to amortization and assets with definite lives subject to amortization. Other intangible assets primarily include 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, 2010, 2009 and 2008 was $19.4, $19.3 and $14.4, respectively. The following table provides a summary of other intangible assets, which are included in other assets on our Consolidated Balance Sheets.


	December 31,
	2010							2009
	Gross Amount		Accumulated Amortization			Net Amount		Gross Amount		Accumulated Amortization			Net Amount
Customer lists	$	147.0	$	(69.0	)	$	78.0	$	131.0	$	(56.4	)	$	74.6
Trade names		45.1		(9.7	)		35.4		39.2		(7.4	)		31.8
Other		17.4		(7.7	)		9.7		16.8		(6.4	)		10.4

Total	$	209.5	$	(86.4	)	$	123.1	$	187.0	$	(70.2	)	$	116.8

The estimated annual amortization expense for other intangible assets for the next five years as of December 31, 2010 is listed below.


	2011		2012		2013		2014		2015
Estimated amortization expense	$	23.8	$	23.5	$	21.1	$	17.3	$	7.6

- Definition

Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

+ References+ Details

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes

Income Taxes

Note 8: Income Taxes

The components of income before income taxes, equity earnings and the impact of noncontrolling interests are listed below.


	Years ended December 31,
	2010		2009		2008
Domestic	$	216.2	$	141.9	$	241.3
Foreign		234.4		90.5		230.2

Total	$	450.6	$	232.4	$	471.5

The provision for income taxes is listed below.


	Years ended December 31,
	2010			2009			2008
Federal income taxes (including foreign withholding taxes):
Current	$	13.7		$	(48.4	)	$	19.7
Deferred		60.2			38.7			78.8

		73.9			(9.7	)		98.5

State and local income taxes:
Current		16.8			(6.1	)		17.8
Deferred		(0.1	)		40.1			13.1

		16.7			34.0			30.9

Foreign income taxes:
Current		84.8			55.4			67.2
Deferred		(4.1	)		10.4			(40.0	)

		80.7			65.8			27.2

Total	$	171.3		$	90.1		$	156.6

A reconciliation of the effective income tax rate before equity earnings and the impact of noncontrolling interests as reflected in the Consolidated Statements of Operations to the U.S. federal statutory income tax rate are listed below.


	Years ended December 31,
	2010			2009			2008
U.S. federal statutory income tax rate		35.0	%		35.0	%		35.0	%

Federal income tax provision at statutory rate	$	157.7		$	81.3		$	165.0
State and local income taxes, net of federal income tax benefit		10.8			22.1			20.1
Impact of foreign operations, including withholding taxes		4.7			26.9			(0.9	)
Change in net valuation allowance ¹		(2.4	)		12.4			(48.0	)
Increases (decreases) in unrecognized tax benefits, net		6.4			(57.9	)		11.8
Stock based compensation		0.2			16.4			4.0
Other		(6.1	)		(11.1	)		4.6

Provision for income taxes	$	171.3		$	90.1		$	156.6

Effective tax rate on operations		38.0	%		38.8	%		33.2	%

1	Reflects changes in valuation allowance that impacted the effective tax rate for each year presented.

In 2010, our effective tax rate of 38.0% was positively impacted by reversals of valuation allowances in Canada and the United Kingdom. Our effective tax rate was negatively impacted by an increase in unrecognized tax benefits and the taxation of foreign operations, which included an income tax assessment in Latin America.

The components of deferred tax assets are listed below.


	December 31,
	2010			2009
Postretirement/post-employment benefits	$	34.5		$	31.7
Deferred compensation		192.3			164.8
Pension costs		23.9			37.8
Basis differences in fixed assets		83.0			71.6
Rent		15.2			16.3
Interest		51.1			43.4
Accruals and reserves		42.0			51.2
Allowance for doubtful accounts		10.6			9.7
Basis differences in intangible assets		(263.3	)		(241.1	)
Investments in equity securities		5.3			5.8
Tax loss/tax credit carry forwards		621.5			605.5
Restructuring and other reorganization-related costs		2.7			5.4
Other		55.6			54.9

Total deferred tax assets, net		874.4			857.0
Valuation allowance		(508.1	)		(425.5	)

Net deferred tax assets	$	366.3		$	431.5

We evaluate the realizability of our deferred tax assets on a quarterly basis. A valuation allowance is to be 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 sufficient negative evidence, establishment of a valuation allowance must be considered. 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 realization of our deferred tax assets is primarily dependent on future earnings. The amount of the deferred tax assets considered realizable could be reduced in the near future if estimates of future taxable income are lower than anticipated. The deferred tax assets for which an allowance was recognized relate primarily to tax credit carryforwards, foreign tax loss carryforwards and U.S. capital loss carryforwards.

The change in the valuation allowance is listed below.


	Years ended December 31,
	2010			2009		2008
Balance at beginning of period	$	425.5		$	379.5	$	481.6
Charged (reversed) to costs and expenses		92.3			24.7		(68.1	)
(Reversed) charged to gross tax assets and other accounts		(9.7	)		21.3		(34.0	)

Balance at end of period	$	508.1		$	425.5	$	379.5

In 2010, amounts charged to costs and expenses primarily relate to the establishment of a deferred tax asset and a corresponding valuation allowance for a Luxembourg tax loss carryforward, which will be first available for effective utilization in 2011. This resulted from restructuring due to a tax law change in Luxembourg. Amounts reversed to gross tax assets and other accounts relate primarily to the effect of foreign currency translation.

In 2009, amounts charged to costs and expenses primarily relate to the establishment of valuation allowances in the Asia Pacific region, where we believe that it is no longer "more likely than not" that the corresponding tax losses will be utilized, based on significant negative evidence in the form of the deterioration of business operations and a short carryforward period in which tax losses must be utilized.

In 2008, amounts reversed to costs and expenses primarily relate to the reversal of valuation allowances in the United Kingdom, Spain and Germany where we believe that it is "more likely than not" that the corresponding tax losses will be utilized, based on sufficient positive evidence in the form of sustained profitability and projected taxable income. We believe we have appropriately considered the current economic climate in relying on the level of projected taxable income. Amounts reversed to gross tax assets and other accounts relate primarily to the effect of foreign currency translation.

As of December 31, 2010, there are $52.9 of tax credit carryforwards that expire in periods beginning in 2011 and ending in 2013. There are also $1,727.8 of loss carryforwards, of which $431.6 are U.S. capital and tax loss carryforwards that expire in the years 2011 through 2029. The remaining $1,296.2 are non-U.S. tax loss carryforwards, of which $1,021.5 have unlimited carryforward periods and $274.7 have expiration periods from 2011 through 2029.

As of December 31, 2010 and December 31, 2009, we had $1,547.1 and $1,599.9, respectively, of undistributed earnings attributable to foreign subsidiaries. It is our intention to permanently reinvest undistributed earnings of our foreign subsidiaries. We have not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences resulting from earnings for certain foreign subsidiaries which are permanently reinvested outside the U.S. It is not practicable to determine the amount of unrecognized deferred tax liability associated with these temporary differences.

The table below summarizes the activity related to our unrecognized tax benefits.


	December 31,
	2010			2009			2008
Balance at beginning of period	$	160.5		$	174.9		$	160.9
Increases as a result of tax positions taken during a prior year		4.6			7.8			22.8
Decreases as a result of tax positions taken during a prior year		(28.1	)		(50.9	)		(21.3	)
Settlements with taxing authorities		(10.2	)		0.0			(4.5	)
Lapse of statutes of limitation		(0.6	)		(5.0	)		(1.7	)
Increases as a result of tax positions taken during the current year		20.5			33.7			18.7

Balance at end of period	$	146.7		$	160.5		$	174.9

Included in the total amount of unrecognized tax benefits of $146.7 as of December 31, 2010, is $145.7 of tax benefits that, if recognized, would impact the effective tax rate. The total amount of accrued interest and penalties as of December 31, 2010 and 2009 is $11.9 and $16.9, respectively, of which a benefit of $5.0 and $16.4 is included in the 2010 and 2009 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 the Consolidated Statements of Operations.

In December 2010, we effectively settled with the United Kingdom tax authorities for the 2007 and 2008 tax years. The settlement resulted in no cash payment.

In September 2010, we effectively settled our New York State examination for the 1999-2001 tax years. The settlement resulted in a cash payment of $11.7 consisting of $5.4 of tax and $6.3 of interest, which was previously reserved.

We have various tax years under examination by tax authorities in various countries, such as the United Kingdom, 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 and various state, local, and non-U.S. tax authorities, we currently anticipate that the total unrecognized tax benefits will decrease by an amount between $20.0 and $30.0 in the next twelve months, a portion of which will affect the effective tax rate, primarily as a result of the settlement of tax examinations and the lapsing of statute 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. income tax audits for years prior to 2007. With limited exceptions, we are no longer subject to state and local income tax audits for years prior to 1999, or non-U.S. income tax audits for years prior to 2000.

Restructuring and Other Reorganization-Related Charges, net

12 Months Ended

Dec. 31, 2010

Restructuring and Other Reorganization-Related Charges, net

Restructuring and Other Reorganization-Related Charges, net

Note 9: Restructuring and Other Reorganization-Related Charges, net

The components of restructuring and other reorganization-related charges, net are listed below.


	Years ended December 31,
	2010			2009			2008
Restructuring charges (reversals), net:
Lease termination and other exit costs	$	1.0		$	(0.1	)	$	5.2
Severance and termination costs		(0.3	)		(0.3	)		0.6

		0.7			(0.4	)		5.8
Other reorganization-related charges, net		3.2			5.0			11.3

Total restructuring and other reorganization-related charges, net	$	3.9		$	4.6		$	17.1

Restructuring Charges (Reversals), net

Restructuring charges (reversals), net relate to the 2003 and 2001 restructuring programs and a restructuring program entered into at Lowe during the third quarter of 2007. Included in these net charges (reversals) are adjustments primarily resulting from changes in management's estimates relating to sublease rental income assumptions, prior severance and termination related actions and accelerated leasehold amortization.

The 2007 program was initiated to realign resources with our strategic business objectives within Lowe as a result of changes in the business environment. The 2003 program was initiated in response to softness in demand for advertising and marketing services. The 2001 program was initiated following the acquisition of True North Communications Inc. and was designed to integrate the acquisition and improve productivity. Since their inception, total net charges for the 2007, 2003 and 2001 programs were $23.0, $221.6 and $641.6, respectively. Substantially all activities under the 2007, 2003 and 2001 programs have been completed.

Net restructuring charges for the year ended December 31, 2010 were comprised of net charges of $1.5 at CMG, partially offset by net reversals of $0.8 at IAN. Net restructuring reversals for the year ended December 31, 2009 were comprised of net reversals of $1.0 at IAN, partially offset by net charges of $0.6 at CMG. Net restructuring charges for the year ended December 31, 2008 were comprised of net charges of $4.2 at IAN and $1.6 at CMG.

As of December 31, 2010, the remaining liability for the 2007, 2003 and 2001 restructuring programs was $0.0, $2.4 and $4.8, respectively.

Other Reorganization-Related Charges, net

Other reorganization-related charges, net primarily relate to the integration of our recent acquisition of DLKW into our Lowe London operations in 2010, the alignment of Deutsch and Lowe in 2009 and the realignment of our media businesses into a management entity called Mediabrands in 2008. Charges relate to severance and terminations costs and lease termination and other exit costs for these activities. The actions associated with the integration of DLKW, the alignment of Deutsch and Lowe, and the establishment of Mediabrands are complete.

Accumulated Other Comprehensive Loss, net of tax

12 Months Ended

Dec. 31, 2010

Accumulated Other Comprehensive Loss, net of tax

Accumulated Other Comprehensive Loss, net of tax

Note 10: Accumulated Other Comprehensive Loss, net of tax

The components of accumulated other comprehensive loss, net of tax are listed below. All items are listed net of tax.


	December 31,
	2010			2009
Foreign currency translation adjustment	$	(51.3	)	$	(85.3	)
Net unrealized holding losses on securities		0.0			(0.4	)
Unrecognized losses, transition obligation and prior service cost		(67.7	)		(90.9	)

Accumulated other comprehensive loss, net of tax	$	(119.0	)	$	(176.6	)

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

Incentive Compensation Plans

12 Months Ended

Dec. 31, 2010

Incentive Compensation Plans

Incentive Compensation Plans

Note 11: Incentive Compensation Plans

2009 Performance Incentive Plan

We issue stock and cash-based incentive 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 2009, our shareholders approved the 2009 Performance Incentive Plan (the "2009 PIP"), which replaced the 2006 Performance Incentive Plan (the "2006 PIP") and previous incentive plans. The number of shares of common stock initially available for granting new stock options and stock appreciation rights under the 2009 PIP was 8.1. The number of shares of common stock initially available for performance-based awards and other stock-based awards under the 2009 PIP was 26.5. Subject to the terms of the 2009 PIP, there are limits on the number of shares that may be awarded to any one participant for each type of award. 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 amended 2006 PIP and the 2009 PIP, we are able to grant performance cash awards. The 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 200% of the target amount of the original grant value. Performance cash awards generally vest in three years. A committee of the Board of Directors may grant performance cash awards to any eligible employee; however, no employee can receive more than $6.0 during a performance period. Performance cash awards may be settled in shares on the vest date. The number of shares to be settled on the vesting date will be calculated as the cash value adjusted for performance divided by our stock price on the vesting date.

The amount of stock-based compensation expense as reflected in salaries and related expenses in our Consolidated Statement of Operations, and the related tax benefit are listed below.


	Years ended December 31,
	2010		2009		2008
Stock options	$	7.4	$	10.2	$	9.0
Stock-settled awards		32.7		34.2		44.1
Cash-settled awards		10.9		9.3		0.7
Performance-based awards		11.0		6.4		26.8
Employee stock purchase plan		0.5		0.7		0.8
Other ¹		4.3		1.5		1.3

Stock-based compensation expense	$	66.8	$	62.3	$	82.7
Tax benefit	$	22.1	$	21.5	$	32.0

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. They are generally 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).

The following tables are a summary of stock option activity during 2010.


	Options			Weighted- Average Exercise Price (per option)		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Stock options outstanding as of January 1, 2010		25.0		$	16.39
Granted		0.5			8.42
Exercised		(0.5	)		9.31
Cancelled/expired		(2.7	)		32.43
Forfeited		(0.1	)		5.18

Stock options outstanding as of December 31, 2010		22.2			14.43		4.6	$	32.9
Stock options vested and expected to vest as of December 31, 2010		21.0			14.86		4.5	$	28.3
Stock options exercisable as of December 31, 2010		15.7			17.61		3.3	$	7.1

	Options			Weighted- Average Grant Date Fair Value (per option)		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Non-vested as of January 1, 2010		8.5		$	3.60
Granted		0.5			3.88
Vested		(2.4	)		4.27
Forfeited		(0.1	)		2.98

Non-vested as of December 31, 2010		6.5			3.38		7.7	$	25.8

There were 0.5 stock options exercised in 2010 and there were no stock options exercised in 2009 and 2008. The total intrinsic value of stock options exercised during 2010 was $0.6. The cash received from the stock options exercised in 2010 was $4.8. As of December 31, 2010 there was $10.7 of total unrecognized compensation expense related to non-vested stock options granted, which is expected to be recognized over a weighted-average period of 1.8 years.

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. Changes in the assumptions can materially affect the estimate of fair value and our results of operations could be materially impacted. The weighted-average grant-date fair value per option during the years ended December 31, 2010, 2009 and 2008 was $3.88, $2.69, and $4.07, respectively.

The fair value of each option grant has been estimated with the following weighted-average assumptions.


	Years ended December 31,
	2010			2009			2008
Expected volatility ¹		42.2	%		68.3	%		36.6	%
Expected term (years) ²		6.5			6.8			6.1
Risk free interest rate ³		3.0	%		2.5	%		3.5	%
Expected dividend yield ⁴		0.0	%		0.0	%		0.0	%

The expected volatility used to estimate the fair value of stock options awarded is based on a blend of: (i) historical volatility of our common stock for periods equal to the expected term of our stock options and (ii) implied volatility of tradable forward put and call options to purchase and sell shares of our common stock.

The estimate of our expected term is based on the average of (i) an assumption that all outstanding options are exercised upon achieving their full vesting date and (ii) an assumption that all outstanding options will be exercised at the midpoint between the current date (i.e., the date awards have ratably vested through) and their full contractual term. In determining the estimate, we considered several factors, including the historical option exercise behavior of our employees and the terms and vesting periods of the options.

3	The risk free rate is determined using the implied yield currently available for zero-coupon U.S. government issuers with a remaining term equal to the expected term of the options.

4	No dividend yield was assumed because we did not pay cash dividends on our common stock for any of the periods presented. See Note 18 for further information.

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 200% of the target amount of shares originally granted. 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 cash-settled and 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 the Consolidated Balance Sheets as of December 31, 2010 and 2009.


	Years ended December 31,
	2010		2009		2008
*Stock-Settled Awards:*
Awards granted		3.7		7.8		6.4
Weighted-average grant-date fair value (per award)	$	8.47	$	4.21	$	9.46
Total fair value of vested awards distributed	$	36.4	$	23.8	$	31.1
*Cash-Settled Awards:*
Awards granted		0.6		1.4		1.3
Weighted-average grant-date fair value (per award)	$	8.50	$	4.43	$	9.27
Total fair value of vested awards distributed	$	4.8	$	7.5	$	9.2
*Performance-Based Awards:*
Awards granted		0.1		1.7		3.7
Weighted-average grant-date fair value (per award)	$	11.02	$	6.25	$	9.49
Total fair value of vested awards distributed	$	4.6	$	29.4	$	15.8

A summary of the activity of our non-vested stock-settled awards, cash-settled awards, and performance-based awards during 2010 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, 2010		16.9		$	7.55		3.2		$	7.62		6.8		$	9.62
Granted		3.7			8.47		0.6			8.50		0.1			11.02
Vested		(4.4	)		10.09		(0.6	)		10.93		(0.6	)		10.92
Forfeited		(1.2	)		8.50		(0.5	)		6.93		(2.7	)		11.11

Non-vested as of December 31, 2010		15.0			6.96		2.7			7.14		3.6			8.38

Total unrecognized compensation expense remaining	$	36.4				$	11.4				$	8.6

Weighted-average years expected to be recognized over		1.3					1.2					1.1

During the first quarter of 2010, additional performance cash awards of $19.0 were awarded under the 2009 PIP and will be settled in shares upon vesting, which is three years from the grant date. As of December 31, 2010, due to the 2010 performance, there was $18.8 of total unrecognized compensation expense related to these awards, which is expected to be recognized over a remaining weighted-average period of 2.3 years.

In conjunction with our annual grant of long-term incentive compensation awards, we review our estimates and assumptions. There were no changes made during 2010. In 2009, there was an increase to our estimated forfeiture rate, as our review of our actual forfeitures indicated a higher level of forfeitures than previously assumed.

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 of Directors, 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, 2010 and 2009, the Compensation Committee granted cash awards under the Cash Plan with a total target value of $31.6 and $28.4, respectively, and we recognized $12.8 and $4.5, respectively, in salaries and related expenses in our Consolidated Statement of Operations.

During the years ended December 31, 2010 and 2009, the Compensation Committee granted performance awards to be settled in cash under the 2009 PIP with a total target value of $18.5 and $31.7, respectively, and we recognized $11.4 and $3.9, respectively, in salaries and related expenses in our Consolidated Statement 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

The Interpublic Group of Companies Employee Stock Purchase Plan (2006) (the "2006 Plan") became active April 1, 2007. Under the 2006 Plan, 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. The price an employee pays for a share of common stock under the 2006 Plan 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 15.0 shares are reserved for issuance under the 2006 Plan, of which 1.7 shares have been issued through December 31, 2010.

Fair Value Measurements

12 Months Ended

Dec. 31, 2010

Fair Value Measurements

Fair Value Measurements

Note 12: 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. We primarily apply the market approach for recurring fair value measurements. 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.

There were no changes to our valuation techniques used to measure the fair value of assets and liabilities on a recurring basis during 2010 as compared to the prior year. The following tables present information about our assets and liabilities measured at fair value on a recurring basis as of December 31, 2010 and December 31, 2009, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.


	December 31, 2010												Balance Sheet Classification
	Level 1			Level 2			Level 3			Total			Balance Sheet Classification
Assets
Cash equivalents	$	1,744.4		$	0.0		$	0.0		$	1,744.4		Cash and cash equivalents
Short-term marketable securities		13.7			0.0			0.0			13.7		Marketable securities
Long-term investments		1.3			13.8			0.0			15.1		Other assets

Total	$	1,759.4		$	13.8		$	0.0		$	1,773.2


As a percentage of total assets		13.5	%		0.1	%		0.0	%		13.6	%

Liabilities
Mandatorily redeemable noncontrolling interests ¹	$	0.0		$	0.0		$	52.0		$	52.0


	December 31, 2009												Balance Sheet Classification
	Level 1			Level 2			Level 3			Total			Balance Sheet Classification
Assets
Cash equivalents	$	1,678.2		$	0.0		$	0.0		$	1,678.2		Cash and cash equivalents
Short-term marketable securities		10.9			0.0			0.0			10.9		Marketable securities
Long-term investments		1.3			13.8			0.0			15.1		Other assets
Interest rate swap agreements ²		0.0			1.4			0.0			1.4		Other assets
Foreign currency derivatives ³		0.0			0.0			0.6			0.6		Other assets

Total	$	1,690.4		$	15.2		$	0.6		$	1,706.2


As a percentage of total assets		13.8	%		0.1	%		0.0	%		13.9	%

Liabilities
Mandatorily redeemable noncontrolling interests ¹	$	0.0		$	0.0		$	47.8		$	47.8

Relates to unconditional obligations to purchase additional noncontrolling equity shares of consolidated subsidiaries. Fair value measurement of the obligation was based upon the amount payable as if the forward contracts were settled. The amount redeemable within the next twelve months is classified in accrued liabilities; any interests redeemable thereafter are classified in other non-current liabilities.

Our interest rate swap agreements were fair value hedges whose fair value was derived from the present value of future cash flows using valuation models that were based on readily observable market data such as interest rates and yield curves. In February 2010, we terminated all of our interest rate swap agreements.

3	Fair value is derived from changes in market value of obligations denominated in foreign currency based on an internal valuation model.

The following table presents additional information about assets and liabilities measured at fair value on a recurring basis and for which we utilize Level 3 inputs to determine fair value.


	Year ended December 31, 2010						Year ended December 31, 2009
	Assets			Liabilities			Assets						Liabilities
	Foreign currency derivatives			Mandatorily redeemable noncontrolling interests			Auction-rate securities			Foreign currency derivatives			Mandatorily redeemable noncontrolling interests
Balance at beginning of period	$	0.6		$	47.8		$	6.7		$	0.8		$	21.6
Level 3 (reductions) additions		0.0			(0.2	)		(6.3	)		0.0			22.5
Realized losses included in net income		(0.6	)		(4.4	)		(0.4	)		(0.2	)		(3.7	)

Balance at end of period	$	0.0		$	52.0		$	0.0		$	0.6		$	47.8

Level 3 reductions relate to payments made related to unconditional obligations to purchase additional equity interests in previous acquisitions for cash. Additionally, in 2009, we sold our entire position in asset-backed auction-rate securities. Level 3 additions relate to unconditional obligations to purchase additional equity interests in previous acquisitions for cash in future periods. Realized losses included in net income for foreign currency derivatives and auction-rate securities are reported as a component of other income, net in the Consolidated Statements of Operations. Realized losses included in net income for mandatorily redeemable noncontrolling interests are reported as a component of interest expense in the Consolidated Statements of Operations.

Gross unrealized and realized gains and losses for our long-term investments and short-term marketable securities are listed below.


	Years ended December 31,
	2010		2009		2008
Reported in comprehensive income
Unrealized gains	$	0.5	$	0.9	$	0.3
Unrealized losses		0.0		0.5		7.4
Reported in other income, net
Realized gains	$	0.2	$	1.0	$	0.4
Realized losses		0.0		0.6		3.4

- Definition

This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods.

+ References+ Details

Employee Benefits

12 Months Ended

Dec. 31, 2010

Employee Benefits

Employee Benefits

Note 13: Employee Benefits

Pension Plans

We have a defined benefit pension plan (the "Domestic Plan") that consists of approximately 4,300 participants and has been closed to new participants since March 31, 1998. We also have numerous plans outside the U.S., some of which are funded, while others provide payments at the time of retirement or termination under applicable labor laws or agreements. The Interpublic 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. Differences between the aggregate balance sheet amounts listed in the tables below and the totals reported in our Consolidated Balance Sheets and our Consolidated Statements of Stockholders' Equity and Comprehensive Income relate to the non-material foreign plans.

Postretirement Benefit Plans

Some of our domestic subsidiaries provide postretirement health benefits and postretirement life insurance to eligible employees and, in certain cases, their dependents. These plans consist of approximately 2,800 participants and are closed to new participants. Our postretirement health benefits plans are unfunded, and we pay claims as presented by the plans' administrator. The postretirement life insurance plan is insured, and we pay premiums to the plan administrator.

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 plans, the principal foreign pension plans and the postretirement benefit plans are listed below.


	Domestic Pension Plans						Foreign Pension Plans						Postretirement Benefit Plans
	Domestic Pension Plans						Foreign Pension Plans						Postretirement Benefit Plans
December 31,	2010			2009			2010			2009			2010			2009
Benefit Obligation
Projected benefit obligation as of January 1	$	139.6		$	140.5		$	464.0		$	414.3		$	55.1		$	57.5
Service cost		0.0			0.0			9.7			11.7			0.3			0.4
Interest cost		7.3			8.0			22.8			23.2			2.8			3.1
Benefits paid		(16.6	)		(11.9	)		(21.1	)		(22.5	)		(7.0	)		(6.3	)
Plan participant contributions		0.0			0.0			0.7			2.2			1.5			1.7
Actuarial losses (gains)		0.6			4.5			(2.3	)		8.8			(0.9	)		(1.4	)
Curtailments and settlements		0.0			(1.5	)		(12.2	)		(17.7	)		0.0			0.0
Foreign currency effect		0.0			0.0			(15.1	)		33.4			0.0			0.0
Other		0.0			0.0			(15.4	)		10.6			0.0			0.1

Projected benefit obligation as of December 31	$	130.9		$	139.6		$	431.1		$	464.0		$	51.8		$	55.1

Fair Value of Plan Assets
Fair value of plan assets as of January 1	$	91.1		$	95.8		$	300.2		$	254.4		$	0.0		$	0.0
Actual return on plan assets		11.2			8.6			28.3			24.6			0.0			0.0
Employer contributions		9.6			0.1			28.1			31.9			5.5			5.0
Plan participant contributions		0.0			0.0			0.7			2.2			1.5			1.7
Benefits paid		(16.6	)		(11.9	)		(21.1	)		(22.5	)		(7.0	)		(6.7	)
Settlements		0.0			(1.5	)		(12.2	)		(17.3	)		0.0			0.0
Foreign currency effect		0.0			0.0			(7.4	)		25.9			0.0			0.0
Other		0.0			0.0			(4.5	)		1.0			0.0			0.0

Fair value of plan assets as of December 31	$	95.3		$	91.1		$	312.1		$	300.2		$	0.0		$	0.0

Funded status of the plans at December 31	$	(35.6	)	$	(48.5	)	$	(119.0	)	$	(163.8	)	$	(51.8	)	$	(55.1	)


	Domestic Pension Plans						Foreign Pension Plans						Postretirement Benefit Plans
December 31,	2010			2009			2010			2009			2010			2009
Amounts recognized in Consolidated Balance Sheets
Non-current asset	$	0.0		$	2.7		$	8.1		$	6.6		$	0.0		$	0.0
Current liability		0.0			0.0			(9.3	)		(10.3	)		(4.5	)		(5.3	)
Non-current liability		(35.6	)		(51.2	)		(117.8	)		(160.1	)		(47.3	)		(49.8	)

Net liability recognized	$	(35.6	)	$	(48.5	)	$	(119.0	)	$	(163.8	)	$	(51.8	)	$	(55.1	)

Accumulated benefit obligation	$	130.9		$	139.6		$	408.8		$	438.0

Amounts recognized in Accumulated Other Comprehensive Loss, net
Net actuarial loss	$	55.5		$	67.7		$	32.3		$	50.6		$	5.7		$	6.6
Prior service cost (credit)		0.1			0.1			1.6			2.3			(0.4	)		(0.5	)
Transition obligation		0.0			0.0			0.0			0.1			0.3			0.5

Total amount recognized	$	55.6		$	67.8		$	33.9		$	53.0		$	5.6		$	6.6

In 2011, we estimate that we will recognize $6.9, $0.7 and $0.1 of net actuarial losses from accumulated other comprehensive loss, net to net periodic cost related to our domestic pension, foreign pension and postretirement benefit plans, respectively.


	Domestic Pension Plans				Foreign Pension Plans
December 31,	2010		2009		2010		2009
Pension plans with underfunded or unfunded accumulated benefit obligation
Aggregate projected benefit obligation	$	130.9	$	130.1	$	411.5	$	448.5
Aggregate accumulated benefit obligation		130.9		130.1		394.4		427.2
Aggregate fair value of plan assets		95.3		78.9		285.7		278.5

Net Periodic Cost

The components of net periodic benefit cost and key assumptions are listed below.


	Domestic Pension Plans									Foreign Pension Plans									Postretirement Benefit Plans
Years ended December 31,	2010			2009			2008			2010			2009			2008			2010			2009			2008
Service cost	$	0.0		$	0.0		$	0.0		$	9.7		$	11.7		$	13.3		$	0.3		$	0.4		$	0.4
Interest cost		7.3			8.0			8.4			22.8			23.2			26.4			2.8			3.1			3.2
Expected return on plan assets		(7.0	)		(7.4	)		(10.4	)		(17.0	)		(13.7	)		(23.9	)		0.0			0.0			0.0
Curtailment and settlement losses (gains)		0.0			0.0			0.1			1.4			2.5			(1.0	)		0.0			0.0			0.0
Amortization of:
Transition obligation		0.0			0.0			0.0			0.0			0.0			0.0			0.2			0.1			0.2
Prior service cost (credit)		0.0			0.1			0.0			0.2			0.2			0.3			(0.1	)		(0.1	)		(0.1	)
Unrecognized actuarial losses		8.6			9.8			5.7			1.9			2.3			0.7			0.0			0.0			0.0

Net periodic cost	$	8.9		$	10.5		$	3.8		$	19.0		$	26.2		$	15.8		$	3.2		$	3.5		$	3.7

Assumptions


	Domestic Pension Plans									Foreign Pension Plans									Postretirement Benefit Plans
Years ended December 31,	2010			2009			2008			2010			2009			2008			2010			2009			2008
Net periodic cost
Discount rate		5.51	%		6.01	%		5.89	%		5.50	%		5.54	%		5.31	%		5.50	%		6.00	%		6.00	%
Rate of compensation increase		N/A			N/A			N/A			4.43	%		4.41	%		3.79	%		N/A			N/A			N/A
Expected return on plan assets		7.49	%		8.16	%		8.15	%		5.84	%		5.05	%		6.95	%		N/A			N/A			N/A
Benefit obligation
Discount rate		5.50	%		5.53	%		6.01	%		5.45	%		5.51	%		5.38	%		5.50	%		5.50	%		6.00	%
Rate of compensation increase		N/A			N/A			N/A			4.34	%		4.43	%		3.38	%		N/A			N/A			N/A
Healthcare cost trend rate assumed for next year
Initial rate (weighted-average)																				8.50	%		8.00	%		8.50	%
Year ultimate rate is reached																				2017			2015			2015
Ultimate rate																				5.50	%		5.50	%		5.50	%

Discount Rates – We determined our discount rates based on a bond-yield curve approach which uses discount rate models that apply a consistent methodology to constructing a universe of high-quality AA-rated corporate bonds. Utilizing each country's bond universe, AA spot rate yield curves are derived, and the plans' cash flows are applied to those spot rate yield curves to calculate a 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. The average duration of our domestic pension and postretirement benefit obligations were 9 years as of December 31, 2010.

On December 31, 2010 we changed from using a bond-yield curve approach, as described above, to a bond selection/settlement approach for our domestic pension and postretirement plans, as well as for our foreign pension plans located in the United Kingdom. We believe the new approach provides a better estimate of the discount rate because it reflects the approach the company would use if actually acquiring a portfolio of bonds to immunize, or effectively settle our obligation. Using the bond selection/settlement approach, we determine the discount rate by selecting a portfolio of AA-rated corporate bonds appropriate to provide for the projected benefit payments. For our domestic plans, this change in our discount rate selection process resulted in a decrease to our pension and postretirement obligation of $8.6 and an increase to other comprehensive income of $5.0, net of tax. For our foreign plans, this change resulted in a decrease of $18.3 to our pension obligation and an increase to other comprehensive income of $18.3, net of tax. This change did not impact our pension and postretirement benefit costs for 2010. We do not expect that this change will have a significant impact to our consolidated results of operations in future years.

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, 2010 and 2009, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. See Note 12 for a description of the fair value hierarchy.


	December 31, 2010								December 31, 2009
Asset Class	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Investment funds	$	19.5	$	289.1	$	53.9	$	362.5	$	22.3	$	279.0	$	38.6	$	339.9
Insurance contracts		0.0		25.1		0.0		25.1		0.0		31.3		0.0		31.3
Other		13.3		3.2		3.3		19.8		14.9		0.0		5.2		20.1

Total	$	32.8	$	317.4	$	57.2	$	407.4	$	37.2	$	310.3	$	43.8	$	391.3

Investment funds include mutual funds, common/collective trusts, hedge funds and other commingled assets that are invested in equity and fixed income securities. Mutual funds, which are publicly traded, are primarily valued using recently reported sales prices. Other investment funds, which are not publicly traded, 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. Insurance contracts are valued based on cash surrender value of the contract. Other investments primarily include cash and cash equivalents, equity securities, fixed income securities such as government and investment-grade corporate bonds, and investments in limited partnerships.

The following table presents additional information about domestic and foreign pension plan assets for which we utilize Level 3 inputs to determine fair value.


	Year ended December 31, 2010									Year ended December 31, 2009
	Investment Funds			Other			Total			Investment Funds			Other			Total
Balance at beginning of period	$	38.6		$	5.2		$	43.8		$	43.1		$	5.3		$	48.4
Actual return on assets:
Assets sold during the year		(0.4	)		(0.2	)		(0.6	)		0.1			0.1			0.2
Assets still held at year end		6.5			0.2			6.7			0.1			0.7			0.8
Net purchases, sales and settlements		3.0			(1.5	)		1.5			(4.7	)		(0.9	)		(5.6	)
Transfers in/out of Level 3		6.2			(0.4	)		5.8			0.0			0.0			0.0

Balance at end of period	$	53.9		$	3.3		$	57.2		$	38.6		$	5.2		$	43.8

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, 2010, target asset allocations for 2011 as well as actual asset allocations are listed below.


							December 31,
	2011 Target Allocation						Domestic						Foreign
Asset Class	Domestic			Foreign			2010			2009			2010			2009
Equity securities		37	%		24	%		36	%		30	%		23	%		20	%
Fixed income securities		45	%		43	%		42	%		37	%		49	%		48	%
Real estate		5	%		4	%		5	%		6	%		2	%		1	%
Other		13	%		29	%		17	%		27	%		26	%		31	%

Total		100	%		100	%		100	%		100	%		100	%		100	%

Cash Flows

For 2011, we expect to contribute $12.1 and $22.8 to our domestic and foreign pension plans, respectively. During 2010, we contributed $9.6 and $28.1 to our domestic and foreign pension plans, respectively. The following estimated future benefit payments, which reflect future service, as appropriate, are expected to be paid in the years indicated below.


Years	Domestic Pension Plans		Foreign Pension Plans		Postretirement Benefit Plans
2011	$	11.3	$	22.9	$	5.0
2012		10.9		23.7		5.0
2013		10.8		24.4		4.8
2014		10.2		27.5		4.7
2015		10.3		28.0		4.5
2016 - 2020		46.8		149.4		21.2

The estimated future payments for our postretirement benefit plans are before any estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Federal subsidies are estimated to range from $0.6 in 2011 to $0.7 in 2015 and are estimated to be $1.9 for the period 2016-2020.

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 allows 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 2010, 2009 and 2008 were $34.3, $35.1 and $29.6, respectively. Expense includes a discretionary Company contribution of $3.6, $3.8 and $4.0 offset by participant forfeitures of $2.4, $2.7 and $7.8 in 2010, 2009 and 2008, respectively. In addition, we maintain defined contribution plans in various foreign countries and contributed $26.2, $25.0 and $28.7 to these plans in 2010, 2009 and 2008, 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, 2010 and 2009, the deferred compensation liability balance was $104.2 and $100.3, respectively. Amounts expensed for deferred compensation arrangements in 2010, 2009 and 2008 were $14.1, $11.6 and $5.7, 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 $177.1 and $178.2 as of December 31, 2010 and 2009, respectively. Amounts expensed for deferred benefit arrangements in 2010, 2009 and 2008 were $12.9, $12.0 and $14.9, 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, 2010 and 2009, the cash surrender value of these policies was $123.2 and $119.4, 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, 2010 and 2009, the value of such investments in the trust was $16.5 and $34.8, 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 during the first 24 months of disability. Income replacement benefits are continued thereafter if the participant is unable to perform 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, 2010 and 2009. In addition to income replacement benefits, plan participants may remain covered for certain health and life insurance benefits up to age 65 and as such, we have recorded an obligation of $10.2 and $6.3 as of December 31, 2010 and 2009, respectively.

Segment Information

12 Months Ended

Dec. 31, 2010

Segment Information

Segment Information

Note 14: Segment Information

As of December 31, 2010, we have two reportable segments: IAN, which is comprised of McCann Worldgroup, Draftfcb, Lowe, Mediabrands and our domestic integrated agencies, and CMG, which 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. In addition, our domestic integrated agencies, including Campbell-Ewald, Hill Holliday and Mullen, 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, FutureBrand, DeVries, GolinHarris, 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, excluding the impact of restructuring and other reorganization-related charges, net and long-lived asset impairment and other charges, if applicable. With the exception of excluding these amounts from reportable segment operating income, all segments follow the same accounting policies as those described in Note 1.

Certain corporate and other charges are reported as a separate line item within total segment operating income and include corporate office expenses and shared service center expenses, as well as 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 also include rental expense and depreciation of leasehold improvements for properties occupied by corporate office employees. A portion of these 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 table below.


	Years ended December 31,
	2010			2009			2008
Revenue:
IAN	$	5,518.0		$	5,112.5		$	5,870.7
CMG		1,013.9			915.1			1,092.0

Total	$	6,531.9		$	6,027.6		$	6,962.7


Segment operating income:
IAN	$	619.3		$	425.9		$	690.8
CMG		78.6			70.6			86.6
Corporate and other		(145.3	)		(150.6	)		(170.6	)

Total		552.6			345.9			606.8

Restructuring and other reorganization-related charges, net		(3.9	)		(4.6	)		(17.1	)
Interest expense		(139.7	)		(155.6	)		(211.9	)
Interest income		28.7			35.0			90.6
Other income, net		12.9			11.7			3.1

Income before income taxes	$	450.6		$	232.4		$	471.5


Depreciation and amortization of fixed assets and intangible assets:
IAN	$	117.3		$	132.3		$	132.9
CMG		13.6			14.3			15.7
Corporate and other		17.5			23.3			24.7

Total	$	148.4		$	169.9		$	173.3


Capital expenditures:
IAN	$	83.5		$	50.0		$	112.5
CMG		6.9			5.7			13.5
Corporate and other		5.9			11.4			12.4

Total	$	96.3		$	67.1		$	138.4


	December 31,
	2010			2009
Total assets:
IAN	$	10,553.6		$	9,763.9
CMG		858.6			897.8
Corporate and other		1,658.6			1,601.4

Total	$	13,070.8		$	12,263.1

Revenue and long-lived assets, excluding intangible assets, are presented by major geographic area in the table below.


	Revenue						Long-Lived Assets
	Years ended December 31,						December 31,
	2010		2009		2008		2010		2009
Domestic	$	3,709.5	$	3,372.3	$	3,786.3	$	480.6	$	489.2

International:
United Kingdom		469.6		458.5		612.9		47.4		49.6
Continental Europe		863.2		922.2		1,150.4		85.2		98.1
Asia Pacific		639.8		575.4		657.3		82.1		76.0
Latin America		388.3		307.3		353.4		57.8		36.8
Other		461.5		391.9		402.4		38.4		39.4

Total international		2,822.4		2,655.3		3,176.4		310.9		299.9

Total consolidated	$	6,531.9	$	6,027.6	$	6,962.7	$	791.5	$	789.1

Revenue is primarily attributed to geographic areas based on where the services are performed. Furniture, equipment and leasehold improvements are allocated based upon physical location. Other assets and investments are allocated based on the location of the related operations.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies

Commitments and Contingencies

Note 15: 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,
	2010			2009			2008
Gross rent expense	$	365.2		$	391.5		$	389.4
Third-party sublease rental income		(20.0	)		(26.8	)		(24.9	)

Net rent expense	$	345.2		$	364.7		$	364.5

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
2011	$	322.1	$	(34.2	)	$	287.9
2012		269.0		(26.8	)		242.2
2013		230.9		(24.1	)		206.8
2014		181.3		(12.4	)		168.9
2015		148.1		(5.6	)		142.5
Thereafter		509.0		(1.5	)		507.5

Total	$	1,660.4	$	(104.6	)	$	1,555.8

Guarantees

We have guarantees of certain obligations of our subsidiaries relating principally to credit facilities, certain media payables and operating leases of certain subsidiaries. The amount of parent company guarantees on lease obligations was $376.8 and $394.9 as of December 31, 2010 and 2009, respectively, and the amount of parent company guarantees primarily relating to credit facilities was $395.0 and $374.4 as of December 31, 2010 and 2009, 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, 2010, there are 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, 2010. The estimated amounts listed would be paid in the event of exercise at the earliest exercise date. See Note 5 for further information relating to the payment structure of our acquisitions. All payments are contingent upon achieving projected operating performance targets and satisfying other conditions specified in the related agreements and are subject to revisions as the earn-out periods progress.


	2011		2012		2013		2014		2015		Thereafter		Total
Deferred acquisition payments	$	62.7	$	2.5	$	1.8	$	4.1	$	0.4	$	1.6	$	73.1
Redeemable noncontrolling interests and call options with affiliates ¹		53.2		65.7		30.5		6.1		0.3		3.7		159.5

Total contingent acquisition payments		115.9		68.2		32.3		10.2		0.7		5.3		232.6
Less: cash compensation expense included above		2.5		2.2		0.2		0.1		0.1		0.1		5.2

Total	$	113.4	$	66.0	$	32.1	$	10.1	$	0.6	$	5.2	$	227.4

We have entered into certain acquisitions that contain both redeemable noncontrolling interests and call options with similar terms and conditions. In such instances, we have included the related estimated contingent acquisition obligation in the period when the earliest related option is exercisable. We have certain redeemable noncontrolling interests that are exercisable at the discretion of the noncontrolling equity owners as of December 31, 2010. These estimated acquisition payments of $21.1 have been included within the total payments expected to be made in 2011 in the table. If not made in 2011, they will continue to carry forward into 2012 or beyond until they are exercised or expire. 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.

Legal Matters

We are involved in legal proceedings, and subject to investigations, inspections, audits, inquiries and similar actions by governmental authorities, arising in the normal course of our business. While any litigation or such governmental proceeding contains an element of uncertainty, we do not believe that the outcome of such proceedings will have a material adverse effect on our financial condition, results of operations or cash flows.

Recent Accounting Standards	12 Months Ended
Recent Accounting Standards	Dec. 31, 2010
Recent Accounting Standards
Recent Accounting Standards	Note 16: Recent Accounting Standards In December 2010, the Financial Accounting Standards Board ("FASB") issued amended guidance for performing goodwill impairment tests, which will be effective for us beginning January 1, 2011. The amended guidance requires reporting units with zero or negative carrying amounts to be assessed to determine if it is more likely than not that goodwill impairment exists. As part of this assessment, entities should consider all qualitative factors that could impact the carrying value. We do not expect the adoption of this guidance to have a significant impact on our Consolidated Financial Statements. In March 2010, the Emerging Issues Task Force ("EITF") reached a consensus related to guidance when applying the milestone method of revenue recognition. The consensus was issued by the FASB as an update to authoritative guidance for revenue recognition and will be effective for us beginning January 1, 2011. The amended guidance provides criteria for identifying those deliverables in an arrangement that meet the definition of a milestone. In addition, the amended guidance includes enhanced quantitative and qualitative disclosures about the arrangements when an entity recognizes revenue using the milestone method. We do not expect the adoption of this guidance to have a significant impact on our Consolidated Financial Statements. In February 2010, the FASB issued amended guidance for subsequent events, which was effective for us in February 2010. In accordance with the revised guidance, an SEC filer no longer is required to disclose the date through which subsequent events have been evaluated in issued and revised financial statements. The adoption of the revised guidance did not have a material impact on our Consolidated Financial Statements. In January 2010, the FASB issued amended guidance to enhance disclosure requirements related to fair value measurements. The amended guidance for Level 1 and Level 2 fair value measurements was effective for us January 1, 2010. The amended guidance for Level 3 fair value measurements will be effective for us beginning January 1, 2011. The guidance requires disclosures of amounts and reasons for transfers in and out of Level 1 and Level 2 recurring fair value measurements as well as additional information related to activities in the reconciliation of Level 3 fair value measurements. The guidance expanded the disclosures related to the level of disaggregation of assets and liabilities and information about inputs and valuation techniques. The adoption of the guidance for Level 1 and Level 2 fair value measurements did not have a material impact on our Consolidated Financial Statements. We do not expect the adoption of the guidance related to Level 3 fair value measurements to have a significant impact on our Consolidated Financial Statements. In January 2010, the FASB issued amended authoritative guidance related to consolidations when there is a decrease in ownership. The guidance was effective for us January 1, 2010. Specifically, the amendment clarifies the scope of the existing guidance and increases the disclosure requirements when a subsidiary is deconsolidated or when a group of assets is de-recognized. The adoption of the amended guidance did not have a significant impact on our Consolidated Financial Statements. In December 2009, the FASB amended authoritative guidance related to accounting for transfers and servicing of financial assets and extinguishments of liabilities. The guidance was effective for us January 1, 2010. The guidance eliminates the concept of a qualifying special-purpose entity and changes the criteria for derecognizing financial assets. In addition, the guidance requires additional disclosures related to a company's continued involvement with financial assets that have been transferred. The adoption of this amended guidance did not have a significant impact on our Consolidated Financial Statements. In December 2009, the FASB amended authoritative guidance for consolidating variable interest entities. The guidance was effective for us January 1, 2010. Specifically, the guidance revises factors that should be considered by a reporting entity when determining whether an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. This guidance also includes revised financial statement disclosures regarding the reporting entity's involvement, including significant risk exposures as a result of that involvement, and the impact the relationship has on the reporting entity's financial statements. The adoption of this amended guidance did not have a significant impact on our Consolidated Financial Statements. In September 2009, the EITF reached a consensus related to revenue arrangements with multiple deliverables. The consensus was issued by the FASB as an update to authoritative guidance for revenue recognition and will be effective for us beginning January 1, 2011. The updated guidance revises how the estimated selling price of each deliverable in a multiple element arrangement is determined when the deliverables do not have stand-alone value. In addition, the guidance requires additional disclosures about the methods and assumptions used to evaluate multiple element arrangements and to identify the significant deliverables within those arrangements. We do not expect the amended guidance to have a significant impact on our Consolidated Financial Statements.

Results by Quarter (Unaudited)

12 Months Ended

Dec. 31, 2010

Results by Quarter (Unaudited)

Results by Quarter (Unaudited)

Note 17: Results by Quarter (Unaudited)


	Three Months Ended March 31,						Three Months Ended June 30,						Three Months Ended September 30,						Three Months Ended December 31,
	2010			2009			2010			2009			2010			2009			2010			2009
Revenue	$	1,341.3		$	1,325.3		$	1,617.8		$	1,474.4		$	1,560.8		$	1,426.7		$	2,012.0		$	1,801.2
Salaries and related expenses		979.3			996.5			991.0			968.4			1,007.1			943.5			1,139.6			1,052.8
Office and general expenses		421.1			410.9			449.0			409.1			452.1			425.4			540.1			475.1
Restructuring and other reorganization-related charges (reversals), net		0.3			(0.2	)		0.6			0.0			1.4			(0.5	)		1.6			5.3
Operating (loss) income		(59.4	)		(81.9	)		177.2			96.9			100.2			58.3			330.7			268.0
Other income (expense), net		0.5			4.9			(2.1	)		(23.3	)		(3.1	)		1.0			17.6			29.1
Total (expenses) and other income		(25.6	)		(17.6	)		(31.0	)		(60.3	)		(31.0	)		(29.2	)		(10.5	)		(1.8	)
(Benefit of) provision for income taxes		(15.3	)		(25.4	)		63.3			3.7			24.4			3.7			98.9			108.1
Net (loss) income		(70.3	)		(73.6	)		83.1			31.4			45.6			25.9			222.8			159.7
Net (loss) income available to IPG common stockholders	$	(71.5	)	$	(73.9	)	$	105.3		$	20.9		$	42.4		$	17.2		$	195.0		$	129.4

(Loss) earnings per share available to IPG common stockholders:
Basic	$	(0.15	)	$	(0.16	)	$	0.22		$	0.04		$	0.09		$	0.04		$	0.41		$	0.27
Diluted	$	(0.15	)	$	(0.16	)	$	0.15		$	0.04		$	0.08		$	0.03		$	0.36		$	0.24

- Definition

This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document.

+ References+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2010
Subsequent Events
Subsequent Events	Note 18: Subsequent Events On February 24, 2011 our Board of Directors ("Board") authorized a program to repurchase from time to time up to $300.0 of our common stock. We may effect such repurchases through open market purchases, trading plans established in accordance with SEC rules, derivative transactions or other means. The timing and amount of repurchases under the authorization will depend on market conditions and our other funding requirements. The share repurchase program has no expiration date. In addition, our Board declared a dividend of $0.06 per share on our common shares, payable on March 25, 2011 to holders of record at the close of business on March 11, 2011, and we intend to resume quarterly common stock dividend payments thereafter.