Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 10, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | OMNICOM GROUP INC. | |
Entity Central Index Key | 0000029989 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 220,167,610 |
Consolidated Balance Sheets
Consolidated Balance Sheets € in Millions, $ in Millions | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Current Assets: | ||
Cash and cash equivalents | $ 3,449.7 | $ 3,652.4 |
Short-term investments, at cost | 5.4 | 5.5 |
Accounts receivable, net of allowance for doubtful accounts of $25.2 and $26.8 | 7,036.7 | 7,666.1 |
Work in process | 1,314.4 | 1,161.5 |
Other current assets | 1,266 | 1,241.4 |
Total Current Assets | 13,072.2 | 13,726.9 |
Property and Equipment at cost, less accumulated depreciation of $1,150.4 and $1,185.0 | 686.4 | 694.4 |
Operating Lease Right-Of-Use Assets | 1,298.8 | 0 |
Equity Method Investments | 118.4 | 120.9 |
Goodwill | 9,378.8 | 9,384.3 |
Intangible Assets, net of accumulated amortization of $739.4 and $737.4 | 367.9 | 382.8 |
Other Assets | 288.7 | 307.7 |
TOTAL ASSETS | 25,211.2 | 24,617 |
Current Liabilities: | ||
Accounts payable | 10,342.9 | 11,464.3 |
Customer advances | 1,104.1 | 1,159 |
Current portion of debt | 499.8 | 499.6 |
Short-term debt | 595.4 | 8.1 |
Taxes payable | 184.5 | 180.6 |
Other current liabilities | 2,186.4 | 1,958.6 |
Total Current Liabilities | 14,913.1 | 15,270.2 |
Long-Term Liabilities | 1,027.1 | 1,197.8 |
Long-Term Liability - Operating Leases | 1,218 | 0 |
Long-Term Debt | 4,402 | 4,384.1 |
Deferred Tax Liabilities | 418.9 | 413.7 |
Commitments and Contingent Liabilities (Note 13) | ||
Temporary Equity - Redeemable Noncontrolling Interests | 262.5 | 244.3 |
Shareholders’ Equity: | ||
Preferred stock | 0 | 0 |
Common stock | 44.6 | 44.6 |
Additional paid-in capital | 718 | 728.8 |
Retained earnings | 7,157 | 7,016.1 |
Accumulated other comprehensive income (loss) | (1,218) | (1,228.5) |
Treasury stock, at cost | (4,288.3) | (4,013.9) |
Total Shareholders’ Equity | 2,413.3 | 2,547.1 |
Noncontrolling interests | 556.3 | 559.8 |
Total Equity | 2,969.6 | 3,106.9 |
TOTAL LIABILITIES AND EQUITY | $ 25,211.2 | $ 24,617 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets (Parenthetical) [Abstract] | ||
Allowance for doubtful accounts | $ 25.2 | $ 26.8 |
Accumulated depreciation | 1,150.4 | 1,185 |
Intangible assets, accumulated amortization | $ 739.4 | $ 737.4 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 3,468.9 | $ 3,629.6 |
Salary and service costs | 2,567.6 | 2,712.8 |
Occupancy and other costs | 309.2 | 320.3 |
Cost of services | 2,876.8 | 3,033.1 |
Selling, general and administrative expenses | 103.6 | 105.4 |
Depreciation and amortization | 59.6 | 69.4 |
Operating Expenses | 3,040 | 3,207.9 |
Operating Profit | 428.9 | 421.7 |
Interest Expense | 63 | 62.3 |
Interest Income | 17 | 15.4 |
Income Before Income Taxes and Income (Loss) From Equity Method Investments | 382.9 | 374.8 |
Income Tax Expense | 102.7 | 90.9 |
Income (Loss) From Equity Method Investments | (0.5) | 0.8 |
Net Income | 279.7 | 284.7 |
Net Income Attributed To Noncontrolling Interests | 16.5 | 20.6 |
Net Income - Omnicom Group Inc. | $ 263.2 | $ 264.1 |
Net Income Per Share - Omnicom Group Inc.: | ||
Basic | $ 1.18 | $ 1.15 |
Diluted | 1.17 | 1.14 |
Dividends Declared Per Common Share | $ 0.65 | $ 0.60 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 279.7 | $ 284.7 |
Cash flow hedge: | ||
Amortization of loss included in interest expense | 1.4 | 1.4 |
Income tax effect | (0.4) | (0.4) |
Other comprehensive income | 1 | 1 |
Defined benefit pension plans and postemployment arrangements: | ||
Amortization of prior service cost | 1.3 | 2 |
Amortization of actuarial losses | 0.5 | 2 |
Income tax effect | (0.7) | (1.1) |
Other comprehensive income | 1.1 | 2.9 |
Available-for-sale securities: | ||
Reclassification | 0 | 0.3 |
Other comprehensive income | 0 | 0.3 |
Foreign currency translation adjustment | 31.7 | 88.7 |
Other Comprehensive Income | 33.8 | 92.9 |
Comprehensive Income | 313.5 | 377.6 |
Comprehensive Income Attributed To Noncontrolling Interests | 17.5 | 25.6 |
Comprehensive Income - Omnicom Group Inc. | $ 296 | $ 352 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 279.7 | $ 284.7 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization of right-of-use assets | 38 | 41.9 |
Amortization of intangible assets | 21.6 | 27.5 |
Amortization of net deferred gain on interest rate swaps | (3.2) | (3.2) |
Share-based compensation | 16.8 | 17.5 |
Other, net | (12.2) | 6.9 |
Use of operating capital | (736.3) | (996.1) |
Net Cash Used In Operating Activities | (395.6) | (620.8) |
Cash Flows from Investing Activities: | ||
Capital expenditures | (27.2) | (36.2) |
Acquisition of businesses and interests in affiliates, net of cash acquired | (0.7) | (178.3) |
Proceeds from disposition of subsidiaries and sale of investments | 64.9 | 7 |
Net Cash Provided By (Used In) Investing Activities | 37 | (207.5) |
Cash Flows from Financing Activities: | ||
Change in short-term debt | 587.1 | (3.6) |
Dividends paid to common shareholders | (134.8) | (138.9) |
Repurchases of common stock | (286.1) | (232.7) |
Proceeds from stock plans | 2 | 3.3 |
Acquisition of additional noncontrolling interests | (2.7) | (23) |
Dividends paid to noncontrolling interest shareholders | (17) | (16.3) |
Payment of contingent purchase price obligations | (3.8) | (5.2) |
Other, net | (12.4) | (10.5) |
Net Cash Provided By (Used In) Financing Activities | 132.3 | (426.9) |
Effect of foreign exchange rate changes on cash and cash equivalents | 23.6 | 27.3 |
Net Decrease in Cash and Cash Equivalents | (202.7) | (1,227.9) |
Cash and Cash Equivalents at the Beginning of Period | 3,652.4 | 3,796 |
Cash and Cash Equivalents at the End of Period | $ 3,449.7 | $ 2,568.1 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Shareholders’ Equity | Noncontrolling Interests |
Cumulative effect of accounting change | $ 24 | $ 23.6 | $ 23.6 | $ 0.4 | ||||
Balance, shares at Dec. 31, 2017 | 297.2 | |||||||
Balance at Dec. 31, 2017 | 3,152.2 | $ 44.6 | $ 828.3 | 6,210.6 | $ (963) | $ (3,505.4) | 2,615.1 | 537.1 |
Net Income | 284.7 | 264.1 | 264.1 | 20.6 | ||||
Other comprehensive income (loss) | 92.9 | 87.9 | 87.9 | 5 | ||||
Dividends to noncontrolling interests | (16.3) | (16.3) | ||||||
Acquisition of noncontrolling interests | (34.5) | (22.8) | (22.8) | (11.7) | ||||
Increase in noncontrolling interests from business combinations | 55.3 | 55.3 | ||||||
Change in temporary equity | 9.1 | 9.1 | 9.1 | |||||
Common stock dividends declared | (138.2) | (138.2) | (138.2) | |||||
Share-based compensation | 17.5 | 17.5 | 17.5 | |||||
Stock issued, share-based compensation | 2.8 | 0.9 | 1.9 | 2.8 | ||||
Common stock repurchased | (232.7) | (232.7) | (232.7) | |||||
Balance at Mar. 31, 2018 | 3,216.8 | $ 44.6 | 833 | 6,360.1 | (875.1) | (3,736.2) | 2,626.4 | 590.4 |
Balance, shares at Mar. 31, 2018 | 297.2 | |||||||
Cumulative effect of accounting change | 0 | 22.3 | (22.3) | 0 | 0 | |||
Balance, shares at Dec. 31, 2018 | 297.2 | |||||||
Balance at Dec. 31, 2018 | 3,106.9 | $ 44.6 | 728.8 | 7,016.1 | (1,228.5) | (4,013.9) | 2,547.1 | 559.8 |
Net Income | 279.7 | 263.2 | 263.2 | 16.5 | ||||
Other comprehensive income (loss) | 33.8 | 32.8 | 32.8 | 1 | ||||
Dividends to noncontrolling interests | (17) | (17) | ||||||
Acquisition of noncontrolling interests | (4.6) | 0.4 | 0.4 | (5) | ||||
Increase in noncontrolling interests from business combinations | 1 | 1 | ||||||
Change in temporary equity | (18.2) | (18.2) | (18.2) | |||||
Common stock dividends declared | (144.6) | (144.6) | (144.6) | |||||
Share-based compensation | 16.8 | 16.8 | 16.8 | |||||
Stock issued, share-based compensation | 1.9 | (9.8) | 11.7 | 1.9 | ||||
Common stock repurchased | (286.1) | (286.1) | (286.1) | |||||
Balance at Mar. 31, 2019 | $ 2,969.6 | $ 44.6 | $ 718 | $ 7,157 | $ (1,218) | $ (4,288.3) | $ 2,413.3 | $ 556.3 |
Balance, shares at Mar. 31, 2019 | 297.2 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements of Equity (Parenthetical) [Abstract] | |||
Dividends Declared Per Common Share | $ 0.65 | $ 0.60 | $ 0.55 |
Presentation of Financial State
Presentation of Financial Statements | 3 Months Ended |
Mar. 31, 2019 | |
Presentation of Financial Statements [Abstract] | |
Presentation of Financial Statements | Presentation of Financial Statements The terms “Omnicom,” “the Company,” “we,” “our” and “us” each refer to Omnicom Group Inc. and its subsidiaries, unless the context indicates otherwise. The accompanying unaudited consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP or GAAP, for interim financial information and Article 10 of Regulation S-X of the Securities and Exchange Commission, or SEC. Accordingly, certain information and footnote disclosure have been condensed or omitted. In our opinion, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation, in all material respects, of the information contained herein. These unaudited consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 , or 2018 10-K. Results for the interim periods are not necessarily indicative of results that may be expected for the year. Accounting Changes Except for the changes discussed below, Omnicom has consistently applied the accounting policies to all periods presented in these unaudited consolidated financial statements. Adoption of ASC 842 On January 1, 2019, we adopted FASB Accounting Standards Codification, or ASC, Topic 842, Leases , or ASC 842, which requires the recognition of the right-of-use assets and related operating and finance lease liabilities on the balance sheet. As permitted by ASC 842, we elected the adoption date of January 1, 2019, which is the date of initial application. As a result, the consolidated balance sheet prior to January 1, 2019 was not restated, continues to be reported under ASC Topic 840, Leases , or ASC 840, which did not require the recognition of operating lease liabilities on the balance sheet, and is not comparative. Under ASC 842, all leases are required to be recorded on the balance sheet and are classified as either operating leases or finance leases. The lease classification affects the expense recognition in the income statement. Operating lease charges are recorded entirely in operating expenses. Finance lease charges are split, where amortization of the right-of-use asset is recorded in operating expenses and an implied interest component is recorded in interest expense. The expense recognition for operating leases and finance leases under ASC 842 is substantially consistent with ASC 840. As a result, there is no significant difference in our results of operations presented in our consolidated income statement and consolidated statement of comprehensive income for each period presented. We adopted ASC 842 using a modified retrospective approach for all leases existing at January 1, 2019. The adoption of ASC 842 had a substantial impact on our balance sheet. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. The accounting for finance leases (capital leases) was substantially unchanged. Accordingly, upon adoption, leases that were classified as operating leases under ASC 840 were classified as operating leases under ASC 842, and we recorded an adjustment of $1,490.1 million to operating lease right-of-use assets and the related lease liability. The lease liability is based on the present value of the remaining minimum lease payments, determined under ASC 840, discounted using our secured incremental borrowing rate at the effective date of January 1, 2019, using the original lease term as the tenor. As permitted under ASC 842, we elected several practical expedients that permit us to not reassess (1) whether a contract is or contains a lease, (2) the classification of existing leases, and (3) whether previously capitalized costs continue to qualify as initial indirect costs. The application of the practical expedients did not have a significant impact on the measurement of the operating lease liability. The impact of the adoption of ASC 842 on the balance sheet at December 31, 2018 was (in millions): As Reported December 31, 2018 Adoption of ASC 842 Increase (Decrease) Balance January 1, 2019 Other current assets $ 1,241.4 $ (29.2 ) $ 1,212.2 Operating lease right-of-use assets — 1,306.5 1,306.5 Total assets 24,617.0 1,277.3 25,894.3 Other current liabilities 1,958.6 172.5 2,131.1 Long-term liability - Operating leases — 1,258.5 1,258.5 Long-term liabilities 1,197.8 (153.7 ) 1,044.1 Total liabilities and equity 24,617.0 1,277.3 25,894.3 We lease substantially all our office space, technology equipment and office equipment used to conduct our business. We adopted ASC 842 effective January 1, 2019. For contracts entered into on or after the effective date, at the inception of a contract we assess whether the contract is, or contains, a lease. Our assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether we have the right to direct the use of the asset. At inception of a lease, we allocate the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments. Leases entered into prior to January 1, 2019, are accounted for under ASC 840 and were not reassessed. Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. Substantially all our operating leases are comprised of office space leases, and substantially all our finance leases are comprised of office furniture and technology equipment. For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, our secured incremental borrowing rate for the same term as the underlying lease. For our real estate and other operating leases, we use our secured incremental borrowing rate. For our finance leases, we use the rate implicit in the lease or our secured incremental borrowing rate if the implicit lease rate cannot be determined. Lease payments included in the measurement of the lease liability comprise the following: the fixed noncancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. Some of our real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and separated into lease and non-lease components based on the initial amount stated in the lease or standalone selling prices. Lease components are included in the measurement of the initial lease liability. Additional payments based on the change in an index or rate, or payments based on a change in our portion of the operating expenses, including real estate taxes and insurance, are recorded as a period expense when incurred. Lease modifications result in remeasurement of the lease liability. Lease expense for operating leases consists of the lease payments plus any initial direct costs, primarily brokerage commissions, and is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Lease expense for finance leases consists of the amortization of the right-of-use asset on a straight-line basis over the lease term and interest expense determined on an amortized cost basis. The lease payments are allocated between a reduction of the lease liability and interest expense. We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases on our right-of-use asset and lease liability was not material. Adoption of ASU 2018-02 On January 1, 2019, we adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax effects from Accumulated Other Comprehensive Income , or ASU 2018-02, which requires the reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects arising from the change in the reduction of the U.S. federal statutory income tax rate to 21% from 35%. The tax effects of items included in accumulated comprehensive income at December 31, 2017 did not reflect the appropriate tax rate. The adoption of ASU 2018-02 resulted in reclassification between accumulated other comprehensive income and retained earnings of $22.3 million , and had no impact on our results of operations or financial position. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Revenue | Revenue Nature of our services We provide an extensive range of advertising, marketing and corporate communications services through various client-centric networks that are organized to meet specific client objectives. Our branded networks and agencies operate in all major markets and provide services in the following fundamental disciplines: advertising, customer relationship management, or CRM, which includes CRM Consumer Experience and CRM Execution & Support, public relations and healthcare. Advertising includes creative services, as well as strategic media planning and buying and data analytics services. CRM Consumer Experience includes Omnicom’s Precision Marketing Group and digital/direct agencies, as well as our branding, shopper marketing and experiential marketing agencies, and CRM Execution & Support includes field marketing, sales support, merchandising and point of sale, as well as other specialized marketing and custom communications services. Public relations services include corporate communications, crisis management, public affairs and media and media relations services. Healthcare includes advertising and media services to global healthcare clients. At the core of all our services is the ability to create or develop a client’s marketing or corporate communications message into content that can be delivered to a target audience across different communications mediums. Our client-centric business model requires that multiple agencies within Omnicom collaborate in formal and informal virtual client networks utilizing our key client matrix organization structure. This collaboration allows us to cut across our internal organizational structures to execute our clients’ marketing requirements in a consistent and comprehensive manner. In addition to collaborating through our client service models, our agencies and networks collaborate across internally developed technology platforms. Annalect, our proprietary data and analytics platform, serves as the strategic resource for all of our agencies and networks to share when developing client service strategies across our virtual networks. Omni, our people-based precision marketing and insights platform, identifies and defines personalized consumer experiences at scale across creative, media and CRM, as well as other disciplines. Revenue by discipline for the three months ended March 31, 2019 and 2018 was (in millions): 2019 2018 Advertising $ 1,921.3 $ 1,901.3 CRM Consumer Experience 605.8 634.9 CRM Execution & Support 349.5 508.6 Public Relations 334.2 346.3 Healthcare 258.1 238.5 $ 3,468.9 $ 3,629.6 Economic factors affecting our revenue Global economic conditions have a direct impact on our revenue. Adverse economic conditions pose a risk that our clients may reduce, postpone or cancel spending for our services, which would impact our revenue. Revenue in our principal geographic markets for the three months ended March 31, 2019 and 2018 was (in millions): 2019 2018 Americas: North America $ 1,989.2 $ 1,985.7 Latin America 89.0 108.4 EMEA: Europe 945.5 1,070.1 Middle East and Africa 79.0 73.4 Asia-Pacific 366.2 392.0 $ 3,468.9 $ 3,629.6 The Americas comprises North America, which includes the United States, Canada and Puerto Rico and Latin America, which includes South America and Mexico. EMEA comprises Europe, the Middle East and Africa. Asia-Pacific comprises Australia, China, India, Japan, Korea, New Zealand, Singapore and other Asian countries. Contract assets and liabilities Work in process includes contract assets, unbilled fees and costs, and media and production costs. Contract liabilities primarily consist of customer advances. At March 31, 2019 , December 31, 2018 and March 31, 2018 work in process and contract liabilities were (in millions): March 31, 2019 December 31, 2018 March 31, 2018 Work in process: Contract assets and unbilled fees and costs $ 755.5 $ 540.1 $ 782.9 Media and production costs 558.9 621.4 595.1 $ 1,314.4 $ 1,161.5 $ 1,378.0 Contract liabilities: Customer advances $ 1,104.1 $ 1,159.0 $ 1,214.3 Work in process consists of accrued costs incurred on behalf of customers, including media and production costs, and fees and other third-party costs that have not yet been billed. Media and production costs are billed during the production process in accordance with the terms of the client contract. Contract assets, which primarily include incentive fees, are not material and will be billed to clients in accordance with the terms of the client contract. Substantially all unbilled fees and costs will be billed within the next 30 days. The contract liability primarily represents advance billings to customers in accordance with the terms of the client contracts, primarily for the reimbursement of third-party costs that are generally incurred in the near term. There were no impairment losses to the contract assets recorded in 2019 . |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | New Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , or ASU 2016-13, which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted for annual and interim periods beginning after December 15, 2018. We will adopt ASU 2016-13 on January 1, 2020. However, we are not yet in a position to assess the impact of the new standard on our results of operations or financial position. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other, Internal-Use Software , or ASU 2018-15, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted at any interim period. ASU 2018-15 may be adopted either on a prospective basis upon early adoption or the effective date for implementation costs for new or existing arrangements incurred on or after the adoption date, or on a full retrospective basis to the earliest period presented. We are not yet in a position to assess the adoption date or the adoption method or to assess impact of the new standard on our results of operations or financial position. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2019 | |
Net Income per Share [Abstract] | |
Net Income per Share | Net Income per Share The computations of basic and diluted net income per share for the three months ended March 31, 2019 and 2018 were (in millions, except per share amounts): 2019 2018 Net Income Available for Common Shares: Net income - Omnicom Group Inc. $ 263.2 $ 264.1 Weighted Average Shares: Basic 223.2 230.2 Dilutive stock options and restricted shares 1.0 1.3 Diluted 224.2 231.5 Anti-dilutive stock options and restricted shares 0.9 1.0 Net Income per Share - Omnicom Group Inc.: Basic $ 1.18 $ 1.15 Diluted $ 1.17 $ 1.14 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets at March 31, 2019 and December 31, 2018 were (in millions): 2019 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Goodwill $ 9,893.3 $ (514.5 ) $ 9,378.8 $ 9,898.6 $ (514.3 ) $ 9,384.3 Intangible assets: Purchased and internally developed software $ 355.9 $ (303.3 ) $ 52.6 $ 356.4 $ (302.2 ) $ 54.2 Customer related and other 751.4 (436.1 ) 315.3 763.8 (435.2 ) 328.6 $ 1,107.3 $ (739.4 ) $ 367.9 $ 1,120.2 $ (737.4 ) $ 382.8 Changes in goodwill for the three months ended March 31, 2019 and 2018 were (in millions): 2019 2018 January 1 $ 9,384.3 $ 9,337.5 Acquisitions 0.5 113.0 Noncontrolling interests in acquired businesses 0.8 55.3 Contingent purchase price of acquired businesses 0.2 57.3 Dispositions (19.0 ) (0.3 ) Foreign currency translation 12.0 72.6 March 31 $ 9,378.8 $ 9,635.4 Since our annual goodwill impairment test there have been no events that would have triggered a need for an interim impairment test. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt [Abstract] | |
Debt | Debt Credit Facilities At March 31, 2019 , our short-term liquidity sources include a $2.5 billion revolving credit facility, or Credit Facility, expiring on July 31, 2021 , uncommitted credit lines aggregating $1.5 billion and the ability to issue up to $2 billion of commercial paper. There were no outstanding commercial paper issuances or borrowings under the Credit Facility or the uncommitted credit lines at March 31, 2019 and December 31, 2018 . Available and unused credit lines at March 31, 2019 and December 31, 2018 were (in millions): 2019 2018 Credit Facility $ 2,500.0 $ 2,500.0 Uncommitted credit lines 1,479.3 1,231.6 Available and unused credit lines $ 3,979.3 $ 3,731.6 The Credit Facility contains financial covenants that require us to maintain a Leverage Ratio of consolidated indebtedness to consolidated EBITDA of no more than 3 times for the most recently ended 12-month period (EBITDA is defined as earnings before interest, taxes, depreciation and amortization) and an Interest Coverage Ratio of consolidated EBITDA to interest expense of at least 5 times for the most recently ended 12-month period. At March 31, 2019 we were in compliance with these covenants as our Leverage Ratio was 2.3 times and our Interest Coverage Ratio was 9.8 times. The Credit Facility does not limit our ability to declare or pay dividends or repurchase our common stock. Short-Term Debt In February 2019, Omnicom Finance Limited, a wholly owned subsidiary of Omnicom, or OFL, issued €520 million of short-term senior notes in a private placement to an investor outside the United States. The notes are unsecured, non-interest bearing and mature on August 14, 2019. The notes are fully and unconditionally guaranteed by Omnicom and rank equal in right of payment with all existing and future unsecured senior indebtedness of OFL. The notes are redeemable in full at OFL's option on June 14, 2019 at a redemption price equal to 100% of the principal amount. Short-term debt at March 31, 2019 and December 31, 2018 was $595.4 million and $8.1 million , respectively. Due to its short-term nature, the carrying value of the short-term debt approximates fair value. Long-Term Debt Long-term debt at March 31, 2019 and December 31, 2018 was (in millions): 2019 2018 6.25% Senior Notes due 2019 $ 500.0 $ 500.0 4.45% Senior Notes due 2020 1,000.0 1,000.0 3.625% Senior Notes due 2022 1,250.0 1,250.0 3.65% Senior Notes due 2024 750.0 750.0 3.60% Senior Notes due 2026 1,400.0 1,400.0 4,900.0 4,900.0 Unamortized premium (discount), net 4.6 4.9 Unamortized debt issuance costs (15.4 ) (16.4 ) Unamortized deferred gain from settlement of interest rate swaps 43.4 48.0 Fair value adjustment attributed to outstanding interest rate swaps (30.8 ) (52.8 ) 4,901.8 4,883.7 Current portion (499.8 ) (499.6 ) Long-term debt $ 4,402.0 $ 4,384.1 Omnicom and its wholly owned finance subsidiary, Omnicom Capital Inc., or OCI, are co-obligors under all the senior notes. The senior notes are a joint and several liability of us and OCI, and we unconditionally guarantee OCI’s obligations with respect to the senior notes. OCI provides funding for our operations by incurring debt and lending the proceeds to our operating subsidiaries. OCI’s assets primarily consist of cash and cash equivalents and intercompany loans made to our operating subsidiaries, and the related interest receivable. There are no restrictions on the ability of OCI or us to obtain funds from our subsidiaries through dividends, loans or advances. Our senior notes are senior unsecured obligations that rank equal in right of payment with all existing and future unsecured senior indebtedness. At March 31, 2019 , we recorded a long-term liability of $9.8 million in connection with the $750 million fixed-to-floating interest rate swap on our 3.65% Senior Notes due 2024, or 2024 Notes, and a long-term liability of $21.0 million in connection with the $500 million fixed-to-floating interest rate swap on our 3.60% Senior Notes due 2026, or 2026 Notes. The liabilities represent the fair value of the swaps on the 2024 Notes and 2026 Notes that was substantially offset by the change in the fair value of the notes. The fixed-to-floating interest rate swaps have the economic effect of converting our debt portfolio to approximately 75% fixed rate obligations and 25% floating rate obligations. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our five branded agency networks operate in the advertising, marketing and corporate communications services industry, and are organized into agency networks, virtual client networks, regional reporting units and operating groups or practice areas. Our networks, virtual client networks and agencies increasingly share clients and provide clients with integrated services. The main economic components of each agency are employee compensation and related costs and direct service costs and occupancy and other costs which include rent and occupancy costs, technology costs and other overhead expenses. Therefore, given these similarities, we aggregate our operating segments, which are our five agency networks, into one reporting segment. The agency networks' regional reporting units comprise three principal regions; the Americas, EMEA and Asia-Pacific. The regional reporting units monitor the performance and are responsible for the agencies in their region. Agencies within the regional reporting units serve similar clients in similar industries and in many cases the same clients and have similar economic characteristics. Revenue and long-lived assets and goodwill by geographic region at and for the three months ended March 31, 2019 and 2018 were (in millions): Americas EMEA Asia-Pacific 2019 Revenue $ 2,078.2 $ 1,024.5 $ 366.2 Long-lived assets and goodwill 7,703.9 3,004.3 655.8 2018 Revenue $ 2,094.1 $ 1,143.5 $ 392.0 Long-lived assets and goodwill 6,838.3 2,941.3 547.5 The Americas comprises North America, which includes the United States, Canada and Puerto Rico, and Latin America, which includes South America and Mexico. EMEA comprises Europe, the Middle East and Africa. Asia-Pacific comprises Australia, China, India, Japan, Korea, New Zealand, Singapore and other Asian countries. Revenue in the United States for the three months ended March 31, 2019 and 2018 was $1,884.1 million and $1,881.0 million , respectively. The increase in long-lived assets and goodwill from 2018 to 2019 is primarily a result of recording the operating lease right-of-use assets upon the adoption of ASC 842 on January 1, 2019 (see Note 1) partially offset by the impact of changes in foreign curriencies during the quarter. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the first quarter of 2019 increased period-over-period to 26.8% from 24.3% . In the first quarter of 2018 , income tax expense was reduced by approximately $13.3 million , primarily as a result of the successful resolution of foreign tax claims during the quarter. At March 31, 2019 , our unrecognized tax benefits were $183.5 million . Of this amount, approximately $174.7 million would affect our effective tax rate upon resolution of the uncertain tax positions. |
Pension and Other Postemploymen
Pension and Other Postemployment Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Pension and Other Postemployment Benefits [Abstract] | |
Pension and Other Postemployment Benefits | Pension and Other Postemployment Benefits Defined Benefit Pension Plans The components of net periodic benefit expense for the three months ended March 31, 2019 and 2018 were (in millions): 2019 2018 Service cost $ 2.3 $ 2.0 Interest cost 1.6 1.9 Expected return on plan assets (0.4 ) (0.7 ) Amortization of prior service cost 0.2 1.1 Amortization of actuarial losses 0.3 1.6 $ 4.0 $ 5.9 We contributed $0.4 million and $0.2 million to our defined benefit pension plans in the three months ended March 31, 2019 and 2018 , respectively. Postemployment Arrangements The components of net periodic benefit expense for the three months ended March 31, 2019 and 2018 were (in millions): 2019 2018 Service cost $ 1.1 $ 1.2 Interest cost 1.1 1.0 Amortization of prior service cost 1.1 0.9 Amortization of actuarial losses 0.2 0.4 $ 3.5 $ 3.5 |
Repositioning Liabilities
Repositioning Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Repositioning Liabilities [Abstract] | |
Repositioning Liabilities | Repositioning Liabilities At March 31, 2019 and December 31, 2018 , the liability for incremental severance and office lease consolidation and termination incurred in connection with our repositioning actions taken in the third quarter of 2018 was $62.1 million and $78.9 million , respectively. We expect that substantially all the liabilities will paid by the end of 2019 . |
Supplemental Cash Flow Data
Supplemental Cash Flow Data | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Data [Abstract] | |
Supplemental Cash Flow Data | Supplemental Cash Flow Data The use of operating capital for the three months ended March 31, 2019 and 2018 was (in millions): 2019 2018 (Increase) decrease in accounts receivable $ 626.8 $ 973.2 (Increase) decrease in work in process and other current assets (214.2 ) (271.9 ) Increase (decrease) in accounts payable (1,141.9 ) (1,522.1 ) Increase (decrease) in customer advances, taxes payable and other current liabilities (15.8 ) (181.3 ) Change in other assets and liabilities, net 8.8 6.0 $ (736.3 ) $ (996.1 ) Income taxes paid $ 63.5 $ 83.2 Interest paid $ 59.4 $ 55.8 Supplemental non-cash information for the three months ended March 31, 2019 (in millions): Operating Leases Finance Leases Net increase in lease liability $ 1,505.9 $ 14.1 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Substantially all our operating lease right-of-use assets and operating lease liability represents leases for office space used to conduct our business. Finance leases represent substantially all our office furniture and technology equipment. The components of lease cost for operating and finance leases for the three months ended March 31, 2019 were (in millions): Operating leases: Lease cost $ 75.5 Variable lease cost 10.1 Sublease income (1.3 ) Operating lease expense 84.3 Short-term lease rent expense 1.4 Finance leases: Amortization of right-of-use use assets 10.2 Interest on lease liability 1.2 11.4 Total lease cost $ 97.1 The right-of-use assets for operating and finance leases at March 31, 2019 were comprised of the following (in millions): Real Estate Equipment Total Operating leases $ 1,274.2 $ 24.6 $ 1,298.8 Finance leases — 127.6 127.6 The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at March 31, 2019 was: Operating Leases Finance Leases Weighted average remaining lease term (years) 8.4 3.2 Weighted average discount rate 3.9 % 4.0 % The following table reconciles the undiscounted cash flows for the operating and finance leases at March 31, 2019 to the operating and finance lease liabilities recorded on the balance sheet (in millions): Operating Leases Finance Leases 2019 Remainder $ 232.2 $ 32.9 2020 274.7 40.6 2021 234.8 31.9 2022 189.1 18.3 2023 148.0 8.1 2024 130.7 3.5 Thereafter 540.1 1.8 Total undiscounted lease payments 1,749.6 137.1 Less: Imputed interest 275.6 6.8 Present value of lease payments $ 1,474.0 $ 130.3 Other current liabilities $ 256.0 $ 40.5 Long-term liability - Operating leases 1,218.0 — Long-term liabilities — 89.8 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities In the ordinary course of business, we are involved in various legal proceedings. We do not presently expect that these proceedings will have a material adverse effect on our results of operations or financial position. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity Changes in accumulated other comprehensive income (loss), net of income taxes, for the three months ended March 31, 2019 and 2018 were (in millions): 2019 Cash Flow Hedge Available-for-Sale Securities Defined Benefit Pension Plans and Postemployment Arrangements Foreign Currency Translation Total January 1 $ (22.3 ) $ — $ (69.3 ) $ (1,136.9 ) $ (1,228.5 ) Cumulative effect of accounting change (5.6 ) — (16.7 ) — (22.3 ) Other comprehensive income (loss) before reclassifications — — — 30.7 30.7 Reclassification from accumulated other comprehensive income (loss) 1.0 — 1.1 — 2.1 March 31 $ (26.9 ) $ — $ (84.9 ) $ (1,106.2 ) $ (1,218.0 ) 2018 January 1 $ (26.3 ) $ (0.3 ) $ (88.4 ) $ (848.0 ) $ (963.0 ) Other comprehensive income (loss) before reclassifications — — — 83.7 83.7 Reclassification from accumulated other comprehensive income (loss) 1.0 0.3 2.9 — 4.2 March 31 $ (25.3 ) $ — $ (85.5 ) $ (764.3 ) $ (875.1 ) |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value [Abstract] | |
Fair Value | Fair Value Financial assets and liabilities measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018 were (in millions): 2019 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 3,449.7 $ 3,449.7 Short-term investments 5.4 5.4 Marketable equity investments 1.6 1.6 Foreign currency derivative instruments $ 0.4 0.4 Liabilities: Interest rate and foreign currency derivative instruments $ 31.1 $ 31.1 Contingent purchase price obligations $ 146.7 146.7 2018 Assets: Cash and cash equivalents $ 3,652.4 $ 3,652.4 Short-term investments 5.5 5.5 Marketable equity investments 1.5 1.5 Liabilities: Interest rate and foreign currency derivative instruments $ 52.9 $ 52.9 Contingent purchase price obligations $ 146.5 146.5 Changes in contingent purchase price obligations for the three months ended March 31, 2019 and 2018 were (in millions): 2019 2018 January 1 $ 146.5 $ 215.6 Acquisitions 1.8 68.1 Revaluation and interest 1.2 1.1 Payments (2.5 ) (5.2 ) Foreign currency translation (0.3 ) 2.1 March 31 $ 146.7 $ 281.7 The carrying amount and fair value of our financial assets and liabilities at March 31, 2019 and December 31, 2018 were (in millions): 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 3,449.7 $ 3,449.7 $ 3,652.4 $ 3,652.4 Short-term investments 5.4 5.4 5.5 5.5 Marketable equity investments 1.6 1.6 1.5 1.5 Foreign currency derivative instruments 0.4 0.4 — — Non-marketable equity securities 11.8 11.8 11.8 11.8 Liabilities: Short-term debt $ 595.4 $ 595.4 $ 8.1 $ 8.1 Interest rate and foreign currency derivative instruments 31.1 31.1 52.9 52.9 Contingent purchase price obligations 146.7 146.7 146.5 146.5 Long-term debt, including current portion 4,901.8 4,948.6 4,883.7 4,821.3 The estimated fair value of the foreign currency and interest rate derivative instruments is determined using model-derived valuations, taking into consideration foreign currency rates for the foreign currency derivatives and readily observable inputs for LIBOR interest rates and yield curves to derive the present value of the future cash flows for the interest rate swap derivatives and counterparty credit risk for each. The estimated fair value of the contingent purchase price obligations is calculated in accordance with the terms of each acquisition agreement and is discounted. The fair value of debt is based on quoted market prices. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated events subsequent to the balance sheet date and determined there have not been any events that have occurred that would require adjustment to or disclosure in the consolidated financial statements. |
Presentation of Financial Sta_2
Presentation of Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Presentation of Financial Statements [Abstract] | |
Impact of Adoption of ASC 842 | The impact of the adoption of ASC 842 on the balance sheet at December 31, 2018 was (in millions): As Reported December 31, 2018 Adoption of ASC 842 Increase (Decrease) Balance January 1, 2019 Other current assets $ 1,241.4 $ (29.2 ) $ 1,212.2 Operating lease right-of-use assets — 1,306.5 1,306.5 Total assets 24,617.0 1,277.3 25,894.3 Other current liabilities 1,958.6 172.5 2,131.1 Long-term liability - Operating leases — 1,258.5 1,258.5 Long-term liabilities 1,197.8 (153.7 ) 1,044.1 Total liabilities and equity 24,617.0 1,277.3 25,894.3 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Revenue in our principal geographic markets for the three months ended March 31, 2019 and 2018 was (in millions): 2019 2018 Americas: North America $ 1,989.2 $ 1,985.7 Latin America 89.0 108.4 EMEA: Europe 945.5 1,070.1 Middle East and Africa 79.0 73.4 Asia-Pacific 366.2 392.0 $ 3,468.9 $ 3,629.6 Revenue by discipline for the three months ended March 31, 2019 and 2018 was (in millions): 2019 2018 Advertising $ 1,921.3 $ 1,901.3 CRM Consumer Experience 605.8 634.9 CRM Execution & Support 349.5 508.6 Public Relations 334.2 346.3 Healthcare 258.1 238.5 $ 3,468.9 $ 3,629.6 |
Work in Process and Contract Liabilities | At March 31, 2019 , December 31, 2018 and March 31, 2018 work in process and contract liabilities were (in millions): March 31, 2019 December 31, 2018 March 31, 2018 Work in process: Contract assets and unbilled fees and costs $ 755.5 $ 540.1 $ 782.9 Media and production costs 558.9 621.4 595.1 $ 1,314.4 $ 1,161.5 $ 1,378.0 Contract liabilities: Customer advances $ 1,104.1 $ 1,159.0 $ 1,214.3 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Net Income per Share [Abstract] | |
Computations of Basic and Diluted Net Income per Share | The computations of basic and diluted net income per share for the three months ended March 31, 2019 and 2018 were (in millions, except per share amounts): 2019 2018 Net Income Available for Common Shares: Net income - Omnicom Group Inc. $ 263.2 $ 264.1 Weighted Average Shares: Basic 223.2 230.2 Dilutive stock options and restricted shares 1.0 1.3 Diluted 224.2 231.5 Anti-dilutive stock options and restricted shares 0.9 1.0 Net Income per Share - Omnicom Group Inc.: Basic $ 1.18 $ 1.15 Diluted $ 1.17 $ 1.14 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and intangible assets at March 31, 2019 and December 31, 2018 were (in millions): 2019 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Goodwill $ 9,893.3 $ (514.5 ) $ 9,378.8 $ 9,898.6 $ (514.3 ) $ 9,384.3 Intangible assets: Purchased and internally developed software $ 355.9 $ (303.3 ) $ 52.6 $ 356.4 $ (302.2 ) $ 54.2 Customer related and other 751.4 (436.1 ) 315.3 763.8 (435.2 ) 328.6 $ 1,107.3 $ (739.4 ) $ 367.9 $ 1,120.2 $ (737.4 ) $ 382.8 |
Changes in Goodwill | Changes in goodwill for the three months ended March 31, 2019 and 2018 were (in millions): 2019 2018 January 1 $ 9,384.3 $ 9,337.5 Acquisitions 0.5 113.0 Noncontrolling interests in acquired businesses 0.8 55.3 Contingent purchase price of acquired businesses 0.2 57.3 Dispositions (19.0 ) (0.3 ) Foreign currency translation 12.0 72.6 March 31 $ 9,378.8 $ 9,635.4 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt [Abstract] | |
Available and Unused Credit Lines | Available and unused credit lines at March 31, 2019 and December 31, 2018 were (in millions): 2019 2018 Credit Facility $ 2,500.0 $ 2,500.0 Uncommitted credit lines 1,479.3 1,231.6 Available and unused credit lines $ 3,979.3 $ 3,731.6 |
Long-Term Debt | Long-term debt at March 31, 2019 and December 31, 2018 was (in millions): 2019 2018 6.25% Senior Notes due 2019 $ 500.0 $ 500.0 4.45% Senior Notes due 2020 1,000.0 1,000.0 3.625% Senior Notes due 2022 1,250.0 1,250.0 3.65% Senior Notes due 2024 750.0 750.0 3.60% Senior Notes due 2026 1,400.0 1,400.0 4,900.0 4,900.0 Unamortized premium (discount), net 4.6 4.9 Unamortized debt issuance costs (15.4 ) (16.4 ) Unamortized deferred gain from settlement of interest rate swaps 43.4 48.0 Fair value adjustment attributed to outstanding interest rate swaps (30.8 ) (52.8 ) 4,901.8 4,883.7 Current portion (499.8 ) (499.6 ) Long-term debt $ 4,402.0 $ 4,384.1 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue and Long-Lived Assets and Goodwill by Geographic Region | Revenue and long-lived assets and goodwill by geographic region at and for the three months ended March 31, 2019 and 2018 were (in millions): Americas EMEA Asia-Pacific 2019 Revenue $ 2,078.2 $ 1,024.5 $ 366.2 Long-lived assets and goodwill 7,703.9 3,004.3 655.8 2018 Revenue $ 2,094.1 $ 1,143.5 $ 392.0 Long-lived assets and goodwill 6,838.3 2,941.3 547.5 |
Pension and Other Postemploym_2
Pension and Other Postemployment Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Pension Plans [Member] | |
Components of Net Periodic Benefit Expense | Defined Benefit Pension Plans The components of net periodic benefit expense for the three months ended March 31, 2019 and 2018 were (in millions): 2019 2018 Service cost $ 2.3 $ 2.0 Interest cost 1.6 1.9 Expected return on plan assets (0.4 ) (0.7 ) Amortization of prior service cost 0.2 1.1 Amortization of actuarial losses 0.3 1.6 $ 4.0 $ 5.9 |
Postemployment Arrangements [Member] | |
Components of Net Periodic Benefit Expense | Postemployment Arrangements The components of net periodic benefit expense for the three months ended March 31, 2019 and 2018 were (in millions): 2019 2018 Service cost $ 1.1 $ 1.2 Interest cost 1.1 1.0 Amortization of prior service cost 1.1 0.9 Amortization of actuarial losses 0.2 0.4 $ 3.5 $ 3.5 |
Supplemental Cash Flow Data (Ta
Supplemental Cash Flow Data (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Data [Abstract] | |
Use of operating capital | The use of operating capital for the three months ended March 31, 2019 and 2018 was (in millions): 2019 2018 (Increase) decrease in accounts receivable $ 626.8 $ 973.2 (Increase) decrease in work in process and other current assets (214.2 ) (271.9 ) Increase (decrease) in accounts payable (1,141.9 ) (1,522.1 ) Increase (decrease) in customer advances, taxes payable and other current liabilities (15.8 ) (181.3 ) Change in other assets and liabilities, net 8.8 6.0 $ (736.3 ) $ (996.1 ) Income taxes paid $ 63.5 $ 83.2 Interest paid $ 59.4 $ 55.8 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Cost for Operating and Finance Leases | The components of lease cost for operating and finance leases for the three months ended March 31, 2019 were (in millions): Operating leases: Lease cost $ 75.5 Variable lease cost 10.1 Sublease income (1.3 ) Operating lease expense 84.3 Short-term lease rent expense 1.4 Finance leases: Amortization of right-of-use use assets 10.2 Interest on lease liability 1.2 11.4 Total lease cost $ 97.1 |
Right-of-Use Assets For Operating and Finance Leases [Table Text Block] | The right-of-use assets for operating and finance leases at March 31, 2019 were comprised of the following (in millions): Real Estate Equipment Total Operating leases $ 1,274.2 $ 24.6 $ 1,298.8 Finance leases — 127.6 127.6 |
Weighted Average Remaining Lease Term and Weighted Average Discount Rate for Operating and Finance Leases [Table Text Block] | The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at March 31, 2019 was: Operating Leases Finance Leases Weighted average remaining lease term (years) 8.4 3.2 Weighted average discount rate 3.9 % 4.0 % |
Reconciliation of Undiscounted Cash Flows and Liabilities for Operating Leases | The following table reconciles the undiscounted cash flows for the operating and finance leases at March 31, 2019 to the operating and finance lease liabilities recorded on the balance sheet (in millions): Operating Leases Finance Leases 2019 Remainder $ 232.2 $ 32.9 2020 274.7 40.6 2021 234.8 31.9 2022 189.1 18.3 2023 148.0 8.1 2024 130.7 3.5 Thereafter 540.1 1.8 Total undiscounted lease payments 1,749.6 137.1 Less: Imputed interest 275.6 6.8 Present value of lease payments $ 1,474.0 $ 130.3 Other current liabilities $ 256.0 $ 40.5 Long-term liability - Operating leases 1,218.0 — Long-term liabilities — 89.8 |
Reconciliation of Undiscounted Cash Flows and Liabilities for Finance Leases | The following table reconciles the undiscounted cash flows for the operating and finance leases at March 31, 2019 to the operating and finance lease liabilities recorded on the balance sheet (in millions): Operating Leases Finance Leases 2019 Remainder $ 232.2 $ 32.9 2020 274.7 40.6 2021 234.8 31.9 2022 189.1 18.3 2023 148.0 8.1 2024 130.7 3.5 Thereafter 540.1 1.8 Total undiscounted lease payments 1,749.6 137.1 Less: Imputed interest 275.6 6.8 Present value of lease payments $ 1,474.0 $ 130.3 Other current liabilities $ 256.0 $ 40.5 Long-term liability - Operating leases 1,218.0 — Long-term liabilities — 89.8 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss), net of income taxes, for the three months ended March 31, 2019 and 2018 were (in millions): 2019 Cash Flow Hedge Available-for-Sale Securities Defined Benefit Pension Plans and Postemployment Arrangements Foreign Currency Translation Total January 1 $ (22.3 ) $ — $ (69.3 ) $ (1,136.9 ) $ (1,228.5 ) Cumulative effect of accounting change (5.6 ) — (16.7 ) — (22.3 ) Other comprehensive income (loss) before reclassifications — — — 30.7 30.7 Reclassification from accumulated other comprehensive income (loss) 1.0 — 1.1 — 2.1 March 31 $ (26.9 ) $ — $ (84.9 ) $ (1,106.2 ) $ (1,218.0 ) 2018 January 1 $ (26.3 ) $ (0.3 ) $ (88.4 ) $ (848.0 ) $ (963.0 ) Other comprehensive income (loss) before reclassifications — — — 83.7 83.7 Reclassification from accumulated other comprehensive income (loss) 1.0 0.3 2.9 — 4.2 March 31 $ (25.3 ) $ — $ (85.5 ) $ (764.3 ) $ (875.1 ) |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018 were (in millions): 2019 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 3,449.7 $ 3,449.7 Short-term investments 5.4 5.4 Marketable equity investments 1.6 1.6 Foreign currency derivative instruments $ 0.4 0.4 Liabilities: Interest rate and foreign currency derivative instruments $ 31.1 $ 31.1 Contingent purchase price obligations $ 146.7 146.7 2018 Assets: Cash and cash equivalents $ 3,652.4 $ 3,652.4 Short-term investments 5.5 5.5 Marketable equity investments 1.5 1.5 Liabilities: Interest rate and foreign currency derivative instruments $ 52.9 $ 52.9 Contingent purchase price obligations $ 146.5 146.5 |
Changes in Contingent Purchase Price Obligations | Changes in contingent purchase price obligations for the three months ended March 31, 2019 and 2018 were (in millions): 2019 2018 January 1 $ 146.5 $ 215.6 Acquisitions 1.8 68.1 Revaluation and interest 1.2 1.1 Payments (2.5 ) (5.2 ) Foreign currency translation (0.3 ) 2.1 March 31 $ 146.7 $ 281.7 |
Carrying Amount and Fair Value of Financial Assets and Liabilities | The carrying amount and fair value of our financial assets and liabilities at March 31, 2019 and December 31, 2018 were (in millions): 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 3,449.7 $ 3,449.7 $ 3,652.4 $ 3,652.4 Short-term investments 5.4 5.4 5.5 5.5 Marketable equity investments 1.6 1.6 1.5 1.5 Foreign currency derivative instruments 0.4 0.4 — — Non-marketable equity securities 11.8 11.8 11.8 11.8 Liabilities: Short-term debt $ 595.4 $ 595.4 $ 8.1 $ 8.1 Interest rate and foreign currency derivative instruments 31.1 31.1 52.9 52.9 Contingent purchase price obligations 146.7 146.7 146.5 146.5 Long-term debt, including current portion 4,901.8 4,948.6 4,883.7 4,821.3 |
Presentation of Financial Sta_3
Presentation of Financial Statements (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Accounting Changes [Line Items] | |||
Operating Leases, Present value of lease payments | $ 1,474 | ||
Other current assets | 1,266 | $ 1,212.2 | $ 1,241.4 |
Operating Lease Right-Of-Use Assets | 1,298.8 | 1,306.5 | 0 |
Total assets | 25,211.2 | 25,894.3 | 24,617 |
Other current liabilities | 2,186.4 | 2,131.1 | 1,958.6 |
Long-Term Liability - Operating Leases | 1,218 | 1,258.5 | 0 |
Long-Term Liabilities | 1,027.1 | 1,044.1 | 1,197.8 |
Total liabilities and equity | $ 25,211.2 | $ 25,894.3 | 24,617 |
Adoption of ASC 842 Increase (Decrease) | |||
Accounting Changes [Line Items] | |||
Operating Leases, Present value of lease payments | 1,490.1 | ||
Other current assets | (29.2) | ||
Operating Lease Right-Of-Use Assets | 1,306.5 | ||
Total assets | 1,277.3 | ||
Other current liabilities | 172.5 | ||
Long-Term Liability - Operating Leases | 1,258.5 | ||
Long-Term Liabilities | (153.7) | ||
Total liabilities and equity | $ 1,277.3 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 3,468.9 | $ 3,629.6 | |
Contract assets and unbilled fees and costs | 755.5 | 782.9 | $ 540.1 |
Media and production costs | 558.9 | 595.1 | 621.4 |
Work in process: | 1,314.4 | 1,378 | 1,161.5 |
Customer advances | 1,104.1 | 1,214.3 | $ 1,159 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,989.2 | 1,985.7 | |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 89 | 108.4 | |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 945.5 | 1,070.1 | |
Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 79 | 73.4 | |
Asia-Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 366.2 | 392 | |
Advertising | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,921.3 | 1,901.3 | |
CRM Consumer Experience | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 605.8 | 634.9 | |
CRM Execution & Support | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 349.5 | 508.6 | |
Public Relations | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 334.2 | 346.3 | |
Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 258.1 | $ 238.5 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Income Available for Common Shares: | ||
Net income - Omnicom Group Inc. | $ 263.2 | $ 264.1 |
Weighted Average Shares: | ||
Basic | 223.2 | 230.2 |
Dilutive stock options and restricted shares | 1 | 1.3 |
Diluted | 224.2 | 231.5 |
Anti-dilutive stock options and restricted shares | 0.9 | 1 |
Net Income per Share - Omnicom Group Inc.: | ||
Basic | $ 1.18 | $ 1.15 |
Diluted | $ 1.17 | $ 1.14 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill, Gross Carrying Value | $ 9,893.3 | $ 9,898.6 | ||
Goodwill, Accumulated Amortization | (514.5) | (514.3) | ||
Goodwill, Net Carrying Value | $ 9,384.3 | $ 9,337.5 | 9,378.8 | 9,384.3 |
Intangible assets: | ||||
Intangible assets:, Gross Carrying Value | 1,107.3 | 1,120.2 | ||
Intangible assets:, Accumulated Amortization | (739.4) | (737.4) | ||
Intangible assets:, Net Carrying Value | 367.9 | 382.8 | ||
Changes in Goodwill | ||||
Goodwill, January 1 | 9,384.3 | 9,337.5 | ||
Goodwill, Acquisitions | 0.5 | 113 | ||
Goodwill, Noncontrolling interests in acquired businesses | 0.8 | 55.3 | ||
Goodwill, Contingent purchase price of acquired businesses | 0.2 | 57.3 | ||
Goodwill, Dispositions | (19) | (0.3) | ||
Goodwill, Foreign currency translation | 12 | 72.6 | ||
Goodwill, March 31 | $ 9,378.8 | $ 9,635.4 | ||
Purchased and internally developed software | ||||
Intangible assets: | ||||
Intangible assets:, Gross Carrying Value | 355.9 | 356.4 | ||
Intangible assets:, Accumulated Amortization | (303.3) | (302.2) | ||
Intangible assets:, Net Carrying Value | 52.6 | 54.2 | ||
Customer related and other | ||||
Intangible assets: | ||||
Intangible assets:, Gross Carrying Value | 751.4 | 763.8 | ||
Intangible assets:, Accumulated Amortization | (436.1) | (435.2) | ||
Intangible assets:, Net Carrying Value | $ 315.3 | $ 328.6 |
Debt (Details)
Debt (Details) € in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019EUR (€) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Credit Facilities [Abstract] | |||
Available and unused credit lines | $ 3,979.3 | $ 3,731.6 | |
Short-Term Borrowings [Abstract] | |||
Short-term debt | € 520 | 595.4 | 8.1 |
Long-Term Debt [Abstract] | |||
Long-term debt, carrying amount | 4,900 | 4,900 | |
Unamortized premium (discount), net | 4.6 | 4.9 | |
Unamortized debt issuance costs | (15.4) | (16.4) | |
Unamortized deferred gain from settlement of interest rate swaps | 43.4 | 48 | |
Fair value adjustment attributed to outstanding interest rate swaps | (30.8) | (52.8) | |
Long-term debt, total | 4,901.8 | 4,883.7 | |
Long-term debt, current portion | (499.8) | (499.6) | |
Long-Term Debt | 4,402 | 4,384.1 | |
Interest Rate Swaps on 2024 Notes [Member] | |||
Long-Term Debt [Abstract] | |||
Interest rate swaps, liability, at fair value | 9.8 | ||
Interest rate swaps, notional amount | 750 | ||
Interest Rate Swaps on 2026 Notes [Member] | |||
Long-Term Debt [Abstract] | |||
Interest rate swaps, liability, at fair value | 21 | ||
Interest rate swaps, notional amount | 500 | ||
Credit Facility | |||
Credit Facilities [Abstract] | |||
Credit Facility, maximum borrowing capacity | 2,500 | ||
Credit Facility, expiration date | Jul. 31, 2021 | ||
Available and unused credit lines | 2,500 | 2,500 | |
Credit Facility, covenant terms | The Credit Facility contains financial covenants that require us to maintain a Leverage Ratio of consolidated indebtedness to consolidated EBITDA of no more than 3 times for the most recently ended 12-month period (EBITDA is defined as earnings before interest, taxes, depreciation and amortization) and an Interest Coverage Ratio of consolidated EBITDA to interest expense of at least 5 times for the most recently ended 12-month period. | ||
Credit Facility, covenant compliance | At March 31, 2019 we were in compliance with these covenants as our Leverage Ratio was 2.3 times and our Interest Coverage Ratio was 9.8 times. | ||
Commercial Paper [Member] | |||
Credit Facilities [Abstract] | |||
Credit Facility, maximum borrowing capacity | 2,000 | ||
Uncommitted credit lines | |||
Credit Facilities [Abstract] | |||
Available and unused credit lines | 1,479.3 | 1,231.6 | |
6.25% Senior Notes due 2019 | |||
Long-Term Debt [Abstract] | |||
Long-term debt, carrying amount | $ 500 | 500 | |
Long-term debt, interest rate | 6.25% | 6.25% | |
Long-term debt, maturity date | Jul. 15, 2019 | ||
4.45% Senior Notes due 2020 | |||
Long-Term Debt [Abstract] | |||
Long-term debt, carrying amount | $ 1,000 | 1,000 | |
Long-term debt, interest rate | 4.45% | 4.45% | |
Long-term debt, maturity date | Aug. 15, 2020 | ||
3.625% Senior Notes due 2022 | |||
Long-Term Debt [Abstract] | |||
Long-term debt, carrying amount | $ 1,250 | 1,250 | |
Long-term debt, interest rate | 3.625% | 3.625% | |
Long-term debt, maturity date | May 1, 2022 | ||
3.65% Senior Notes due 2024 | |||
Long-Term Debt [Abstract] | |||
Long-term debt, carrying amount | $ 750 | 750 | |
Long-term debt, interest rate | 3.65% | 3.65% | |
Long-term debt, maturity date | Nov. 1, 2024 | ||
3.60% Senior Notes due 2026 | |||
Long-Term Debt [Abstract] | |||
Long-term debt, carrying amount | $ 1,400 | $ 1,400 | |
Long-term debt, interest rate | 3.60% | 3.60% | |
Long-term debt, maturity date | Apr. 15, 2026 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||
Revenue | $ 3,468.9 | $ 3,629.6 |
Americas | ||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||
Revenue | 2,078.2 | 2,094.1 |
Long-lived assets and goodwill | 7,703.9 | 6,838.3 |
United States | ||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||
Revenue | 1,884.1 | 1,881 |
EMEA | ||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||
Revenue | 1,024.5 | 1,143.5 |
Long-lived assets and goodwill | 3,004.3 | 2,941.3 |
Asia-Pacific | ||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||
Revenue | 366.2 | 392 |
Long-lived assets and goodwill | $ 655.8 | $ 547.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Taxes [Abstract] | ||
Effective tax rate | 26.80% | 24.30% |
Income tax expense reduction, resolution of foreign tax claims and reduction of income tax applied against overall foreign earnings | $ 13.3 | |
Unrecognized tax benefits | $ 183.5 | |
Unrecognized tax benefits that would impact effective tax rate | $ 174.7 |
Pension and Other Postemploym_3
Pension and Other Postemployment Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Pension Plans [Member] | ||
Components of Net Periodic Benefit Expense | ||
Service cost | $ 2.3 | $ 2 |
Interest cost | 1.6 | 1.9 |
Expected return on plan assets | (0.4) | (0.7) |
Amortization of prior service cost | 0.2 | 1.1 |
Amortization of actuarial losses | 0.3 | 1.6 |
Net periodic benefit expense | 4 | 5.9 |
Employer contributions | 0.4 | 0.2 |
Postemployment Arrangements [Member] | ||
Components of Net Periodic Benefit Expense | ||
Service cost | 1.1 | 1.2 |
Interest cost | 1.1 | 1 |
Amortization of prior service cost | 1.1 | 0.9 |
Amortization of actuarial losses | 0.2 | 0.4 |
Net periodic benefit expense | $ 3.5 | $ 3.5 |
Repositioning Liabilities (Deta
Repositioning Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Repositioning Liabilities [Abstract] | ||
Repositioning Liabilities | $ 62.1 | $ 78.9 |
Supplemental Cash Flow Data (De
Supplemental Cash Flow Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Change in Operating Capital [Abstract] | ||
(Increase) decrease in accounts receivable | $ 626.8 | $ 973.2 |
(Increase) decrease in work in process and other current assets | (214.2) | (271.9) |
Increase (decrease) in accounts payable | (1,141.9) | (1,522.1) |
Increase (decrease) in customer advances, taxes payable and other current liabilities | (15.8) | (181.3) |
Change in other assets and liabilities, net | 8.8 | 6 |
Use of operating capital | (736.3) | (996.1) |
Income taxes paid | 63.5 | 83.2 |
Interest paid | 59.4 | $ 55.8 |
Operating Leases, Net increase in lease liability | 1,505.9 | |
Finance Leases, Net increase in lease liability | $ 14.1 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lease Cost [Abstract] | |||
Operating leases, Lease cost | $ 75.5 | ||
Operating leases, Variable lease cost | 10.1 | ||
Operating leases, Sublease income | (1.3) | ||
Operating lease expense | 84.3 | ||
Short-term lease rent expense | 1.4 | ||
Finance leases, Amortization of right-of-use use assets | 10.2 | ||
Finance leases, Interest on lease liability | 1.2 | ||
Finance leases, Total lease cost | 11.4 | ||
Total lease cost | 97.1 | ||
Right-of-Use Assets [Abstract] | |||
Operating Lease Right-Of-Use Assets | 1,298.8 | $ 1,306.5 | $ 0 |
Finance Lease Right-of-Use Assets | $ 127.6 | ||
Weighted Average Remaining Lease Term and Weighted Average Discount Rate [Abstract] | |||
Operating Lease, Weighted Average Remaining Lease Term | 8 years 5 months | ||
Operating Lease, Weighted Average Discount Rate | 3.90% | ||
Finance Lease, Weighted Average Remaining Lease Term | 3 years 2 months | ||
Finance Lease, Weighted Average Discount Rate | 4.00% | ||
Reconciliation of Undiscounted Cash Flows and Liabilities for Operating and Finance Leases [Abstract] | |||
Operating Leases Payments, 2019 Remainder | $ 232.2 | ||
Operating Leases Payments, 2020 | 274.7 | ||
Operating Leases Payments, 2021 | 234.8 | ||
Operating Leases Payments, 2022 | 189.1 | ||
Operating Leases Payments, 2023 | 148 | ||
Operating Leases Payments, 2024 | 130.7 | ||
Operating Leases Payments, Thereafter | 540.1 | ||
Operating Leases, Total undiscounted lease payments | 1,749.6 | ||
Operating Leases, Less: Imputed interest | 275.6 | ||
Operating Leases, Present value of lease payments | 1,474 | ||
Finance Leases Payments, 2019 Remainder | 32.9 | ||
Finance Leases Payments, 2020 | 40.6 | ||
Finance Leases Payments, 2021 | 31.9 | ||
Finance Leases Payments, 2022 | 18.3 | ||
Finance Leases Payments, 2023 | 8.1 | ||
Finance Leases Payments, 2024 | 3.5 | ||
Finance Leases Payments, Thereafter | 1.8 | ||
Finance Leases, Total undiscounted lease payments | 137.1 | ||
Finance Leases, Less: Imputed interest | 6.8 | ||
Finance Leases, Present value of lease payments | 130.3 | ||
Lease Liabilities Recorded on Balance Sheet [Abstract] | |||
Operating Leases Liability, Other Current Liabilities | $ 256 | ||
Operating Leases Liability, Current, Balance Sheet Location | us-gaap:OtherLiabilitiesCurrent | ||
Long-Term Liability - Operating Leases | $ 1,218 | $ 1,258.5 | $ 0 |
Operating Lease Liability, Long-term, Balance Sheet Location | us-gaap:OperatingLeaseLiabilityNoncurrent | ||
Finance Leases Liability, Other Current Liabilities | $ 40.5 | ||
Finance Leases Liability, Current, Balance Sheet Location | us-gaap:OtherLiabilitiesCurrent | ||
Finance Leases Liability, Long-term liabilities | $ 89.8 | ||
Finance Leases Liability, Long-term, Balance Sheet Location | us-gaap:OtherLiabilitiesNoncurrent | ||
Real Estate Lease [Member] | |||
Right-of-Use Assets [Abstract] | |||
Operating Lease Right-Of-Use Assets | $ 1,274.2 | ||
Finance Lease Right-of-Use Assets | 0 | ||
Equipment Lease [Member] | |||
Right-of-Use Assets [Abstract] | |||
Operating Lease Right-Of-Use Assets | 24.6 | ||
Finance Lease Right-of-Use Assets | $ 127.6 |
Equity (Details)
Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | $ (1,228.5) | $ (963) |
Cumulative effect of accounting change | (22.3) | |
Other comprehensive income (loss) before reclassifications | 30.7 | 83.7 |
Reclassification from accumulated other comprehensive income (loss) | 2.1 | 4.2 |
March 31 | (1,218) | (875.1) |
Cash Flow Hedge | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (22.3) | (26.3) |
Cumulative effect of accounting change | (5.6) | |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassification from accumulated other comprehensive income (loss) | 1 | 1 |
March 31 | (26.9) | (25.3) |
Available-for-Sale Securities | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | 0 | (0.3) |
Cumulative effect of accounting change | 0 | |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassification from accumulated other comprehensive income (loss) | 0 | 0.3 |
March 31 | 0 | 0 |
Defined Benefit Pension Plans and Postemployment Arrangements | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (69.3) | (88.4) |
Cumulative effect of accounting change | (16.7) | |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassification from accumulated other comprehensive income (loss) | 1.1 | 2.9 |
March 31 | (84.9) | (85.5) |
Foreign Currency Translation | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (1,136.9) | (848) |
Cumulative effect of accounting change | 0 | |
Other comprehensive income (loss) before reclassifications | 30.7 | 83.7 |
Reclassification from accumulated other comprehensive income (loss) | 0 | 0 |
March 31 | $ (1,106.2) | $ (764.3) |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Assets: | |||
Cash and cash equivalents | $ 3,449.7 | $ 3,652.4 | |
Short-term investments | 5.4 | 5.5 | |
Marketable equity investments | 1.6 | 1.5 | |
Foreign currency derivative instruments | 0.4 | 0 | |
Non-marketable equity securities | 11.8 | 11.8 | |
Liabilities: | |||
Short-term debt | 595.4 | 8.1 | |
Interest rate and foreign currency derivative instruments | 31.1 | 52.9 | |
Contingent purchase price obligations | 146.7 | 146.5 | |
Long-term debt, including current portion | 4,948.6 | 4,821.3 | |
Carrying Amount | |||
Assets: | |||
Cash and cash equivalents | 3,449.7 | 3,652.4 | |
Short-term investments | 5.4 | 5.5 | |
Marketable equity investments | 1.6 | 1.5 | |
Foreign currency derivative instruments | 0.4 | 0 | |
Non-marketable equity securities | 11.8 | 11.8 | |
Liabilities: | |||
Short-term debt | 595.4 | 8.1 | |
Interest rate and foreign currency derivative instruments | 31.1 | 52.9 | |
Contingent purchase price obligations | 146.7 | 146.5 | |
Long-term debt, including current portion | 4,901.8 | 4,883.7 | |
Contingent purchase price obligations | |||
Changes in Contingent Purchase Price Obligations [Roll Forward] | |||
January 1 | 146.5 | $ 215.6 | |
Acquisitions | 1.8 | 68.1 | |
Revaluation and interest | 1.2 | 1.1 | |
Payments | (2.5) | (5.2) | |
Foreign currency translation | (0.3) | 2.1 | |
March 31 | 146.7 | $ 281.7 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Cash and cash equivalents | 3,449.7 | 3,652.4 | |
Short-term investments | 5.4 | 5.5 | |
Marketable equity investments | 1.6 | 1.5 | |
Foreign currency derivative instruments | 0.4 | ||
Liabilities: | |||
Interest rate and foreign currency derivative instruments | 31.1 | 52.9 | |
Contingent purchase price obligations | 146.7 | 146.5 | |
Fair Value, Measurements, Recurring [Member] | Level 1 | |||
Assets: | |||
Cash and cash equivalents | 3,449.7 | 3,652.4 | |
Short-term investments | 5.4 | 5.5 | |
Marketable equity investments | 1.6 | 1.5 | |
Fair Value, Measurements, Recurring [Member] | Level 2 | |||
Assets: | |||
Foreign currency derivative instruments | 0.4 | ||
Liabilities: | |||
Interest rate and foreign currency derivative instruments | 31.1 | 52.9 | |
Fair Value, Measurements, Recurring [Member] | Level 3 | |||
Liabilities: | |||
Contingent purchase price obligations | $ 146.7 | $ 146.5 |