Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 13, 2021 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 1-10551 | |
Entity Registrant Name | OMNICOM GROUP INC. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-1514814 | |
Entity Address, Address Line One | 280 Park Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 415-3600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 212,558,522 | |
Entity Central Index Key | 0000029989 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Amendment Flag | false | |
Common Stock, $0.15 Par Value | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.15 Par Value | |
Trading Symbol | OMC | |
Security Exchange Name | NYSE | |
0.800% Senior Notes due 2027 | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 0.800% Senior Notes due 2027 | |
Trading Symbol | OMC/27 | |
Security Exchange Name | NYSE | |
1.400% Senior Notes due 2031 | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 1.400% Senior Notes due 2031 | |
Trading Symbol | OMC/31 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 4,431.2 | $ 5,600.5 |
Accounts receivable, net of allowance for doubtful accounts of $20.8 and $30.4 | 7,186.2 | 7,813.4 |
Work in process | 1,249.6 | 1,101.2 |
Other current assets | 896 | 1,075 |
Total Current Assets | 13,763 | 15,590.1 |
Property and Equipment at cost, less accumulated depreciation of $1,169.1 and $1,156.7 | 542.8 | 585.2 |
Operating Lease Right-Of-Use Assets | 1,100.1 | 1,223.4 |
Equity Method Investments | 77.8 | 85.3 |
Goodwill | 9,601.5 | 9,609.7 |
Intangible Assets, net of accumulated amortization of $844.4 and $817.2 | 278.1 | 298.5 |
Other Assets | 217.5 | 255 |
TOTAL ASSETS | 25,580.8 | 27,647.2 |
Current Liabilities: | ||
Accounts payable | 9,953.8 | 11,513 |
Customer advances | 1,325.8 | 1,361.3 |
Short-term debt | 10.2 | 3.9 |
Taxes payable | 214.9 | 244.5 |
Other current liabilities | 2,320.5 | 2,402.4 |
Total Current Liabilities | 13,825.2 | 15,525.1 |
Long-Term Liabilities | 992.8 | 970.7 |
Long-Term Liability - Operating Leases | 991 | 1,114 |
Long-Term Debt | 5,271.7 | 5,807.3 |
Deferred Tax Liabilities | 468.3 | 443.5 |
Commitments and Contingent Liabilities (Note 12) | ||
Temporary Equity - Redeemable Noncontrolling Interests | 280 | 209.7 |
Shareholders’ Equity: | ||
Preferred stock | 0 | 0 |
Common stock | 44.6 | 44.6 |
Additional paid-in capital | 708.6 | 747.8 |
Retained earnings | 8,730 | 8,190.6 |
Accumulated other comprehensive income (loss) | (1,307.9) | (1,213.8) |
Treasury stock, at cost | (4,896.3) | (4,684.8) |
Total Shareholders’ Equity | 3,279 | 3,084.4 |
Noncontrolling interests | 472.8 | 492.5 |
Total Equity | 3,751.8 | 3,576.9 |
TOTAL LIABILITIES AND EQUITY | $ 25,580.8 | $ 27,647.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets (Parenthetical) [Abstract] | ||
Allowance for doubtful accounts | $ 20.8 | $ 30.4 |
Accumulated depreciation | 1,169.1 | 1,156.7 |
Intangible assets, accumulated amortization | $ 844.4 | $ 817.2 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,435 | $ 3,206.5 | $ 10,433.6 | $ 9,414.1 |
Salary and service costs | 2,461.8 | 2,287.1 | 7,609.9 | 6,851.5 |
Occupancy and other costs | 285.5 | 273.1 | 871 | 872.6 |
Gain on disposition of subsidiary | 0 | 0 | (50.5) | 0 |
COVID-19 repositioning costs | 0 | 0 | 0 | 277.9 |
Cost of services | 2,747.3 | 2,560.2 | 8,430.4 | 8,002 |
Selling, general and administrative expenses | 95 | 90.2 | 269.9 | 259.2 |
Depreciation and amortization | 51.1 | 54.7 | 157.9 | 168.8 |
Operating Expenses | 2,893.4 | 2,705.1 | 8,858.2 | 8,430 |
Operating Profit | 541.6 | 501.4 | 1,575.4 | 984.1 |
Interest Expense | 50.7 | 54.4 | 184.8 | 166.6 |
Interest Income | 7 | 5.9 | 20.1 | 25.1 |
Income Before Income Taxes and Income (Loss) From Equity Method Investments | 497.9 | 452.9 | 1,410.7 | 842.6 |
Income Tax Expense | 120 | 120.9 | 355.1 | 240.2 |
Income (Loss) From Equity Method Investments | 2.2 | 2.9 | 2.1 | (10.1) |
Net Income | 380.1 | 334.9 | 1,057.7 | 592.3 |
Net Income Attributed To Noncontrolling Interests | 24.5 | 21.6 | 66.1 | 45 |
Net Income - Omnicom Group Inc. | $ 355.6 | $ 313.3 | $ 991.6 | $ 547.3 |
Net Income Per Share - Omnicom Group Inc.: | ||||
Basic | $ 1.66 | $ 1.45 | $ 4.61 | $ 2.54 |
Diluted | $ 1.65 | $ 1.45 | $ 4.58 | $ 2.53 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 380.1 | $ 334.9 | $ 1,057.7 | $ 592.3 |
Cash flow hedge: | ||||
Amortization of loss included in interest expense | 1.3 | 1.3 | 4.2 | 4.1 |
Income tax effect | (0.4) | (0.4) | (1.2) | (1.2) |
Other comprehensive income (loss), Cash flow hedge | 0.9 | 0.9 | 3 | 2.9 |
Defined benefit pension plans and postemployment arrangements: | ||||
Amortization of prior service cost | 1.1 | 1.2 | 3.6 | 3.7 |
Amortization of actuarial losses | 3.4 | 1.8 | 9.9 | 5.6 |
Income tax effect | (1.7) | (0.6) | (5.1) | (2.6) |
Other comprehensive income (loss), Defined benefit pension plans and postemployment arrangements | 2.8 | 2.4 | 8.4 | 6.7 |
Foreign currency translation adjustment | (132.2) | 78.1 | (121.1) | (210.3) |
Other Comprehensive Income (Loss) | (128.5) | 81.4 | (109.7) | (200.7) |
Comprehensive Income | 251.6 | 416.3 | 948 | 391.6 |
Comprehensive Income Attributed To Noncontrolling Interests | 16.5 | 27 | 50.5 | 27.3 |
Comprehensive Income - Omnicom Group Inc. | $ 235.1 | $ 389.3 | $ 897.5 | $ 364.3 |
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 |
Beginning Balance at Dec. 31, 2019 | $ 760.9 | $ 7,806.3 | $ (1,197.6) | $ (4,560.3) | $ 519.8 | |||
Net Income | $ 592.3 | 547.3 | 45 | |||||
Other comprehensive income (loss) | (200.7) | (183) | (17.7) | |||||
Dividends to noncontrolling interests | (57.7) | |||||||
Acquisition of noncontrolling interests | 10.4 | (37) | ||||||
Increase in noncontrolling interests from business combinations | 30.7 | |||||||
Change in temporary equity | (8.1) | |||||||
Common stock dividends declared | (421) | |||||||
Share-based compensation | 52.5 | |||||||
Stock issued, share-based compensation | (73.9) | 79.8 | ||||||
Common stock repurchased | (219.1) | |||||||
Ending Balance at Sep. 30, 2020 | $ 3,121.9 | $ 44.6 | 741.8 | 7,932.6 | (1,380.6) | (4,699.6) | $ 2,638.8 | 483.1 |
Dividends Declared Per Common Share | $ 1.95 | |||||||
Beginning Balance at Jun. 30, 2020 | 801.2 | 7,759.3 | (1,456.6) | (4,735.5) | 448.4 | |||
Net Income | $ 334.9 | 313.3 | 21.6 | |||||
Other comprehensive income (loss) | 81.4 | 76 | 5.4 | |||||
Dividends to noncontrolling interests | (22.5) | |||||||
Acquisition of noncontrolling interests | 0.5 | (0.5) | ||||||
Increase in noncontrolling interests from business combinations | 30.7 | |||||||
Change in temporary equity | (28.7) | |||||||
Common stock dividends declared | (140) | |||||||
Share-based compensation | 17.6 | |||||||
Stock issued, share-based compensation | (48.8) | 49.8 | ||||||
Common stock repurchased | (13.9) | |||||||
Ending Balance at Sep. 30, 2020 | $ 3,121.9 | $ 44.6 | 741.8 | 7,932.6 | (1,380.6) | (4,699.6) | 2,638.8 | 483.1 |
Dividends Declared Per Common Share | $ 0.65 | |||||||
Common Stock, shares issued | 297.2 | |||||||
Beginning Balance at Dec. 31, 2020 | $ 3,576.9 | 747.8 | 8,190.6 | (1,213.8) | (4,684.8) | 492.5 | ||
Net Income | 1,057.7 | 991.6 | 66.1 | |||||
Other comprehensive income (loss) | (109.7) | (94.1) | (15.6) | |||||
Dividends to noncontrolling interests | (69.8) | |||||||
Acquisition of noncontrolling interests | 26.2 | (37.7) | ||||||
Increase in noncontrolling interests from business combinations | 37.3 | |||||||
Change in temporary equity | (73) | |||||||
Common stock dividends declared | (452.2) | |||||||
Share-based compensation | 57.8 | |||||||
Stock issued, share-based compensation | (50.2) | 61.7 | ||||||
Common stock repurchased | (273.2) | |||||||
Ending Balance at Sep. 30, 2021 | $ 3,751.8 | $ 44.6 | 708.6 | 8,730 | (1,307.9) | (4,896.3) | 3,279 | 472.8 |
Dividends Declared Per Common Share | $ 2.10 | |||||||
Beginning Balance at Jun. 30, 2021 | 735.4 | 8,523.7 | (1,187.5) | (4,767.4) | 488.1 | |||
Net Income | $ 380.1 | 355.6 | 24.5 | |||||
Other comprehensive income (loss) | (128.5) | (120.4) | (8) | |||||
Dividends to noncontrolling interests | (31.2) | |||||||
Acquisition of noncontrolling interests | 0.3 | (0.6) | ||||||
Increase in noncontrolling interests from business combinations | 0 | |||||||
Change in temporary equity | (6) | |||||||
Common stock dividends declared | (149.3) | |||||||
Share-based compensation | 18.7 | |||||||
Stock issued, share-based compensation | (39.8) | 42.2 | ||||||
Common stock repurchased | (171.1) | |||||||
Ending Balance at Sep. 30, 2021 | $ 3,751.8 | $ 44.6 | $ 708.6 | $ 8,730 | $ (1,307.9) | $ (4,896.3) | $ 3,279 | $ 472.8 |
Dividends Declared Per Common Share | $ 0.70 | |||||||
Common Stock, shares issued | 297.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 1,057.7 | $ 592.3 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of right-of-use assets | 98.1 | 106.4 |
Amortization of intangible assets | 59.8 | 62.4 |
Amortization of net deferred gain on interest rate swaps | (10.2) | (6.8) |
Share-based compensation | 57.8 | 52.5 |
Gain on disposition of subsidiary | (50.5) | 0 |
COVID-19 repositioning costs | 0 | 277.9 |
Other, net | 36.6 | 50.6 |
Use of operating capital | (1,010.7) | (1,796.7) |
Net Cash Provided By (Used In) Operating Activities | 238.6 | (661.4) |
Cash Flows from Investing Activities: | ||
Capital expenditures | (42.6) | (50) |
Acquisition of businesses and interests in affiliates, net of cash acquired | (25.9) | (65.4) |
Proceeds from disposition of subsidiaries and other, net | 116.6 | 6.3 |
Net Cash Provided By (Used In) Investing Activities | 48.1 | (109.1) |
Cash Flows from Financing Activities: | ||
Proceeds from borrowings | 791.7 | 1,186.6 |
Repayment of debt | (1,250) | (600) |
Change in short-term debt | 6.7 | 13.7 |
Dividends paid to common shareholders | (443) | (422.7) |
Repurchases of common stock | (273.2) | (219.1) |
Proceeds from stock plans | 8.5 | 3.1 |
Acquisition of additional noncontrolling interests | (6.3) | (16.9) |
Dividends paid to noncontrolling interest shareholders | (69.8) | (57.7) |
Payment of contingent purchase price obligations | (16.8) | (25.4) |
Other, net | (86.2) | (49.1) |
Net Cash Used In Financing Activities | (1,338.4) | (187.5) |
Effect of foreign exchange rate changes on cash and cash equivalents | (117.6) | (69.4) |
Net Decrease in Cash and Cash Equivalents | (1,169.3) | (1,027.4) |
Cash and Cash Equivalents at the Beginning of Period | 5,600.5 | 4,305.7 |
Cash and Cash Equivalents at the End of Period | $ 4,431.2 | $ 3,278.3 |
Presentation of Financial State
Presentation of Financial Statements | 9 Months Ended |
Sep. 30, 2021 | |
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. 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, 2020, or 2020 10-K. Results for the interim periods are not necessarily indicative of results that may be expected for the year. Risks and Uncertainties - Ongoing Impact of the COVID-19 Pandemic on our Business As the impact of the COVID-19 pandemic on the global economy continues to moderate, we experienced an improvement in our business in the third quarter of 2021 as compared to the third quarter of 2020. Revenue for the nine months ended September 30, 2021 increased $1,019.5 million, or 10.8%, compared to the nine months ended September 30, 2020. The increase in revenue primarily reflects increased client spending in all our disciplines and across all our geographic areas compared to the prior year period and the strengthening of most foreign currencies, primarily the British Pound and the Euro, against the U.S. Dollar. The increase in revenue period-over-period was partially offset by a reduction in acquisition revenue, net of disposition revenue reflecting the sale of our wholly owned subsidiary ICON International, or ICON, a specialty media business, in the second quarter of 2021. Global economic conditions may continue to be volatile as long as the COVID-19 pandemic remains a public health threat, which could negatively impact our clients' spending plans. We expect global economic performance and the performance of our businesses to vary by geography and discipline until the impact of the COVID-19 pandemic on the global economy subsides. Accounting Changes On January 1, 2021, we adopted FASB ASU 2019-12, Income Taxes (Topic 740), or ASU 2019-12, which, among other things, amended the rules for recognizing deferred taxes for investments, performing intra-period tax allocations and calculating income taxes in interim periods and reduced complexity in certain areas, including the accounting for transactions that result in a step-up in the tax basis of goodwill and allocating taxes to members of a consolidated group. The adoption of ASU 2019-12 did not have a material effect on our results of operations and financial position. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
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, public relations, and healthcare. Advertising includes creative services, as well as strategic media planning and buying and data analytics 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. In an effort to better capture the expanding scope of our services, effective January 1, 2021, we realigned the classification of certain services primarily within our CRM Consumer Experience discipline. As a result, our CRM discipline has been reclassified into four categories: CRM Precision Marketing, which includes our precision marketing and digital/direct marketing agencies; CRM Commerce and Brand Consulting that is primarily comprised of Omnicom Commerce Group, including our shopper marketing businesses, and our Brand Consulting agencies; CRM Experiential, which includes our experiential marketing agencies and events businesses; and CRM Execution & Support, which includes field marketing, merchandising and point of sale, as well as other specialized marketing and custom communications services. 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. Reclassifications have been made to the prior period revenue by discipline information to conform to the current period presentation. Revenue by discipline was (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Advertising $ 1,820.6 $ 1,827.6 $ 5,838.8 $ 5,291.0 CRM Precision Marketing 309.4 237.1 872.4 683.1 CRM Commerce and Brand Consulting 231.3 194.2 667.4 602.8 CRM Experiential 132.7 88.1 345.1 297.9 CRM Execution & Support 258.8 235.5 756.3 702.0 Public Relations 359.4 325.6 1,022.8 957.4 Healthcare 322.8 298.4 930.8 879.9 $ 3,435.0 $ 3,206.5 $ 10,433.6 $ 9,414.1 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 was (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Americas: North America $ 1,821.8 $ 1,854.7 $ 5,751.7 $ 5,516.0 Latin America 72.5 61.6 206.1 187.8 EMEA: Europe 1,024.3 875.0 3,009.5 2,525.9 Middle East and Africa 58.1 45.2 160.6 135.3 Asia-Pacific 458.3 370.0 1,305.7 1,049.1 $ 3,435.0 $ 3,206.5 $ 10,433.6 $ 9,414.1 The Americas is comprised of North America, which includes the United States, Canada and Puerto Rico, and Latin America, which includes South America and Mexico. EMEA is comprised of Europe, the Middle East and Africa. Asia-Pacific includes Australia, Greater China, India, Japan, Korea, New Zealand, Singapore and other Asian countries. Revenue in the United States for the three months ended September 30, 2021 and 2020 was $1,705.2 million and $1,762.9 million, respectively, and revenue in the United States for the nine months ended September 30, 2021 and 2020 was $5,414.2 million and $5,244.7 million, respectively. 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. Work in process and contract liabilities were (in millions): September 30, 2021 December 31, 2020 September 30, 2020 Work in process: Contract assets and unbilled fees and costs $ 596.6 $ 501.1 $ 648.0 Media and production costs 653.0 600.1 526.4 $ 1,249.6 $ 1,101.2 $ 1,174.4 Contract liabilities: Customer advances $ 1,325.8 $ 1,361.3 $ 1,129.5 Work in process represents 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 primarily include incentive fees, which 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. No impairment losses to the contract assets were recorded in the three or nine months ended September 30, 2021 and 2020. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2021 | |
Net Income per Share [Abstract] | |
Net Income (Loss) per Share | Net Income per Share The computations of basic and diluted net income per share were (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net Income - Omnicom Group Inc. $ 355.6 $ 313.3 $ 991.6 $ 547.3 Weighted Average Shares: Basic 214.0 215.4 215.0 215.6 Dilutive stock options and restricted shares 1.4 0.4 1.4 0.6 Diluted 215.4 215.8 216.4 216.2 Anti-dilutive stock options and restricted shares 0.7 0.8 0.7 0.8 Net Income per Share - Omnicom Group Inc.: Basic $ 1.66 $ 1.45 $ 4.61 $ 2.54 Diluted $ 1.65 $ 1.45 $ 4.58 $ 2.53 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets were (in millions): September 30, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Goodwill $ 10,123.9 $ (522.4) $ 9,601.5 $ 10,141.6 $ (531.9) $ 9,609.7 Intangible assets: Purchased and internally developed software $ 379.8 $ (314.6) $ 65.2 $ 377.6 $ (307.0) $ 70.6 Customer related and other 742.7 (529.8) 212.9 738.1 (510.2) 227.9 $ 1,122.5 $ (844.4) $ 278.1 $ 1,115.7 $ (817.2) $ 298.5 Changes in goodwill were (in millions): Nine Months Ended September 30, 2021 2020 January 1 $ 9,609.7 $ 9,440.5 Acquisitions 6.9 46.1 Noncontrolling interests in acquired businesses 37.3 32.4 Contingent purchase price obligations of acquired businesses 88.0 — Dispositions (21.7) (3.3) Foreign currency translation (118.7) (77.3) September 30 $ 9,601.5 $ 9,438.4 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt [Abstract] | |
Debt | Debt Credit Facilities We maintain a $2.5 billion multi-currency revolving credit facility, or Credit Facility, that matures on February 14, 2025. Additionally, we have uncommitted credit lines aggregating $915.6 million and the ability to issue up to $2 billion of commercial paper. These facilities provide additional liquidity sources for operating capital and general corporate purposes. At September 30, 2021, there were no outstanding commercial paper issuances or borrowings under the Credit Facility or the uncommitted credit lines. The Credit Facility contains a financial covenant that requires us to maintain a Leverage Ratio of consolidated indebtedness to consolidated EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash charges) of no more than 3.5 times for the most recently ended 12-month period. In October 2020, we amended the Credit Facility to increase the maximum Leverage Ratio to 4.0 times through December 31, 2021. At September 30, 2021, we were in compliance with this covenant as our Leverage Ratio was 2.2 times. The Credit Facility does not limit our ability to declare or pay dividends or repurchase our common stock. Short-Term Debt Short-term debt at September 30, 2021 and December 31, 2020 of $10.2 million and $3.9 million, respectively, represents bank overdrafts and short-term borrowings primarily of our international subsidiaries. Due to the short-term nature of this debt, carrying value approximates fair value. Long-Term Debt Long-term debt was (in millions): September 30, 2021 December 31, 2020 3.625% Senior Notes due 2022 $ — $ 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 €500 Million 0.80% Senior Notes due 2027 579.0 611.5 2.45% Senior Notes due 2030 600.0 600.0 4.20% Senior Notes due 2030 600.0 600.0 €500 Million 1.40% Senior Notes due 2031 579.0 611.5 2.60% Senior Notes due 2031 800.0 — 5,308.0 5,823.0 Unamortized discount (8.6) (5.1) Unamortized debt issuance costs (29.3) (27.0) Unamortized deferred gain from settlement of interest rate swaps 1.6 16.4 Long-term debt $ 5,271.7 $ 5,807.3 On May 3, 2021, we issued $800 million 2.60% Senior Notes due August 1, 2031, or 2031 Notes. The net proceeds from the issuance, after deducting the underwriting discount and offering expenses, were $791.7 million. The net proceeds plus cash on hand were used to redeem all the outstanding 3.625% Senior Notes due 2022, or 2022 Notes, in May 2021. In connection with the redemption of the 2022 Notes, we recorded a loss on extinguishment of $26.6 million in interest expense. The 2.45% Senior Notes, the 4.20% Senior Notes and the 2.60% Senior Notes are senior unsecured obligations of Omnicom that rank equal in right of payment with all existing and future unsecured senior indebtedness. Omnicom and its wholly owned finance subsidiary, Omnicom Capital Inc., or OCI, are co-obligors under the 3.65% Senior Notes and the 3.60% Senior Notes. These notes are a joint and several liability of Omnicom and OCI, and Omnicom unconditionally guarantees OCI’s obligations with respect to the 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 Omnicom to obtain funds from our subsidiaries through dividends, loans or advances. Such notes are senior unsecured obligations that rank equal in right of payment with all existing and future unsecured senior indebtedness. Omnicom and OCI have, jointly and severally, fully and unconditionally guaranteed the obligations of Omnicom Finance Holdings plc, or OFHP, a U.K.-based wholly owned subsidiary of Omnicom, with respect to the Euro denominated notes due 2027 and 2031. OFHP’s assets consist of its investments in several wholly owned finance companies that function as treasury centers that provide funding for various operating companies in Europe, Brazil, Australia and other countries in the Asia-Pacific region. The finance companies’ assets consist of cash and cash equivalents and intercompany loans that they make or have made to the operating companies in their respective regions and the related interest receivable. There are no restrictions on the ability of Omnicom, OCI or OFHP to obtain funds from their subsidiaries through dividends, loans or advances. The Euro denominated notes and the related guarantees are senior unsecured obligations that rank equal in right of payment with all existing and future unsecured senior indebtedness of OFHP and each of Omnicom and OCI, respectively. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingOur 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 agency networks, into one reporting segment. During the second quarter of 2021, we reorganized the management of one of our agency networks, effectively combining certain practice areas into a new reporting unit that primarily comprises our Omnicom Public Relations Group practice area. As a result of the reorganization, the number of operating segments increased from five to six in 2021. 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 were (in millions): Americas EMEA Asia-Pacific September 30, 2021 Revenue - Three months ended $ 1,894.3 $ 1,082.4 $ 458.3 Revenue - Nine months ended 5,957.8 3,170.1 1,305.7 Long-lived assets and goodwill 7,567.2 2,991.1 686.1 September 30, 2020 Revenue - Three months ended $ 1,916.3 $ 920.2 $ 370.0 Revenue - Nine months ended 5,703.8 2,661.2 1,049.1 Long-lived assets and goodwill 7,632.5 3,005.0 642.0 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the nine months ended September 30, 2021 decreased period-over-period to 25.2% from 28.5%. In the second quarter of 2021, we sold ICON International, or ICON, a wholly owned subsidiary. In connection with the sale, we recorded a pre-tax gain of $50.5 million. The lower effective tax rate for 2021 was predominantly the result of a nominal tax applied against the book gain on the sale of ICON resulting from excess tax over book basis. In addition, in the third quarter of 2021, income tax expense was reduced by $11.7 million, primarily from the favorable settlements of uncertain tax positions in certain jurisdictions. The effective tax rate for 2020 reflects an increase due to the non-deductibility in certain jurisdictions of a portion of the COVID-19 repositioning charges recorded in the second quarter of 2020. At September 30, 2021, our unrecognized tax benefits were $174.6 million. Of this amount, approximately $166.9 million would affect our effective tax rate upon resolution of the uncertain tax positions. |
Pension and Other Postemploymen
Pension and Other Postemployment Benefits | 9 Months Ended |
Sep. 30, 2021 | |
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 were (in millions): Nine Months Ended September 30, 2021 2020 Service cost $ 3.9 $ 5.6 Interest cost 2.7 5.0 Expected return on plan assets (0.8) (0.7) Amortization of prior service cost 0.5 0.5 Amortization of actuarial losses 7.0 4.0 $ 13.3 $ 14.4 We contributed $0.5 million and $0.9 million to our defined benefit pension plans in the nine months ended September 30, 2021 and 2020, respectively. Postemployment Arrangements The components of net periodic benefit expense were (in millions): Nine Months Ended September 30, 2021 2020 Service cost $ 3.6 $ 3.5 Interest cost 1.6 2.6 Amortization of prior service cost 3.1 3.2 Amortization of actuarial losses 2.9 1.6 $ 11.2 $ 10.9 |
Disposition of Subsidiary
Disposition of Subsidiary | 9 Months Ended |
Sep. 30, 2021 | |
Disposition of Subsidiary [Abstract] | |
Disposition of Subsidiary | Disposition of SubsidiaryIn the second quarter of 2021, we sold ICON, a specialty media company, to ICON's management team. As a result, we recorded a pre-tax gain of $50.5 million from the sale. As discussed in Note 7, the after-tax gain approximated the pre-tax gain. The disposition of ICON will not have a material impact on our ongoing results of operations or financial position. |
COVID-19 Repositioning Costs
COVID-19 Repositioning Costs | 9 Months Ended |
Sep. 30, 2021 | |
COVID-19 Repositioning Costs [Abstract] | |
COVID-19 Repositioning Costs | COVID-19 Repositioning Costs In the second quarter of 2020, in response to the COVID-19 pandemic, we incurred $277.9 million of repositioning costs to align our cost structure and reduce our workforce and facility requirements. At September 30, 2021 the remaining liability for the COVID-19 repositioning costs was (in millions): January 1, 2021 $ 83.8 Payments (34.6) September 30, 2021 $ 49.2 We expect that the liability for the COVID-19 repositioning costs will be substantially paid by the end of 2021. |
Supplemental Cash Flow Data
Supplemental Cash Flow Data | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Data [Abstract] | |
Supplemental Cash Flow Data | Supplemental Cash Flow Data The change in operating capital was (in millions): Nine Months Ended September 30, 2021 2020 (Increase) decrease in accounts receivable $ 343.6 $ 1,435.6 (Increase) decrease in work in process and other current assets (308.6) 121.0 Increase (decrease) in accounts payable (1,071.3) (3,110.7) Increase (decrease) in customer advances, taxes payable and other current liabilities (86.2) (216.8) Change in other assets and liabilities, net 111.8 (25.8) Increase (decrease) $ (1,010.7) $ (1,796.7) Income taxes paid $ 320.2 $ 249.4 Interest paid $ 157.4 $ 116.5 Supplemental non-cash information related to leases was (in millions): Nine Months Ended September 30, 2021 2020 Net increase in lease liability: Operating leases $ 111.2 $ 114.7 Finance leases $ 47.9 $ 23.5 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent LiabilitiesIn 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), net of income taxes were (in millions): Cash Defined Benefit Pension Plans and Postemployment Arrangements Foreign Total Nine Months Ended September 30, 2021 January 1 $ (20.1) $ (123.2) $ (1,070.5) $ (1,213.8) Other comprehensive income (loss) before reclassifications — — (105.5) (105.5) Reclassification from accumulated other comprehensive income (loss) 3.0 8.4 — 11.4 September 30 $ (17.1) $ (114.8) $ (1,176.0) $ (1,307.9) Nine Months Ended September 30, 2020 January 1 $ (24.0) $ (112.1) $ (1,061.5) $ (1,197.6) Other comprehensive income (loss) before reclassifications — — (192.6) (192.6) Reclassification from accumulated other comprehensive income (loss) 2.9 6.7 — 9.6 September 30 $ (21.1) $ (105.4) $ (1,254.1) $ (1,380.6) |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value [Abstract] | |
Fair Value | Fair Value Financial assets and liabilities measured at fair value on a recurring basis were (in millions): September 30, 2021 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 4,431.2 $ 4,431.2 Marketable equity investments 1.2 1.2 Foreign currency derivatives $ 0.1 0.1 Liabilities: Foreign currency derivatives $ 0.3 $ 0.3 Contingent purchase price obligations $ 146.6 146.6 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 5,600.5 $ 5,600.5 Marketable equity investments 1.6 1.6 Foreign currency derivative instruments $ 0.6 0.6 Liabilities: Foreign currency derivatives 0.3 0.3 Contingent purchase price obligations $ 71.9 71.9 Changes in contingent purchase price obligations were (in millions): Nine Months Ended September 30, 2021 2020 January 1 $ 71.9 $ 107.7 Acquisitions 92.3 10.0 Revaluation and interest 0.7 2.0 Payments (16.8) (25.4) Foreign currency translation (1.5) 1.0 September 30 $ 146.6 $ 95.3 The carrying amount and fair value of our financial assets and liabilities were (in millions): September 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Assets: Cash and cash equivalents $ 4,431.2 $ 4,431.2 $ 5,600.5 $ 5,600.5 Marketable equity securities 1.2 1.2 1.6 1.6 Non-marketable equity securities 6.6 6.6 8.9 8.9 Foreign currency derivatives 0.1 0.1 0.6 0.6 Liabilities: Short-term debt $ 10.2 $ 10.2 $ 3.9 $ 3.9 Foreign currency derivatives 0.3 0.3 0.3 0.3 Contingent purchase price obligations 146.6 146.6 71.9 71.9 Long-term debt 5,217.7 5,669.0 5,807.3 6,380.6 The estimated fair value of the foreign currency derivatives is determined using model-derived valuations, taking into consideration foreign currency rates and counterparty credit risk. 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 | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated events subsequent to the balance sheet date and determined that there have not been any events that have occurred that would require additional adjustments to or disclosures in these consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |
Work in Process and Contract Liabilities | Work in process and contract liabilities were (in millions): September 30, 2021 December 31, 2020 September 30, 2020 Work in process: Contract assets and unbilled fees and costs $ 596.6 $ 501.1 $ 648.0 Media and production costs 653.0 600.1 526.4 $ 1,249.6 $ 1,101.2 $ 1,174.4 Contract liabilities: Customer advances $ 1,325.8 $ 1,361.3 $ 1,129.5 |
Geographic Markets [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Revenue in our principal geographic markets was (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Americas: North America $ 1,821.8 $ 1,854.7 $ 5,751.7 $ 5,516.0 Latin America 72.5 61.6 206.1 187.8 EMEA: Europe 1,024.3 875.0 3,009.5 2,525.9 Middle East and Africa 58.1 45.2 160.6 135.3 Asia-Pacific 458.3 370.0 1,305.7 1,049.1 $ 3,435.0 $ 3,206.5 $ 10,433.6 $ 9,414.1 |
Discipline [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Revenue by discipline was (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Advertising $ 1,820.6 $ 1,827.6 $ 5,838.8 $ 5,291.0 CRM Precision Marketing 309.4 237.1 872.4 683.1 CRM Commerce and Brand Consulting 231.3 194.2 667.4 602.8 CRM Experiential 132.7 88.1 345.1 297.9 CRM Execution & Support 258.8 235.5 756.3 702.0 Public Relations 359.4 325.6 1,022.8 957.4 Healthcare 322.8 298.4 930.8 879.9 $ 3,435.0 $ 3,206.5 $ 10,433.6 $ 9,414.1 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Net Income per Share [Abstract] | |
Computations of Basic and Diluted Net Income (Loss) per Share | The computations of basic and diluted net income per share were (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net Income - Omnicom Group Inc. $ 355.6 $ 313.3 $ 991.6 $ 547.3 Weighted Average Shares: Basic 214.0 215.4 215.0 215.6 Dilutive stock options and restricted shares 1.4 0.4 1.4 0.6 Diluted 215.4 215.8 216.4 216.2 Anti-dilutive stock options and restricted shares 0.7 0.8 0.7 0.8 Net Income per Share - Omnicom Group Inc.: Basic $ 1.66 $ 1.45 $ 4.61 $ 2.54 Diluted $ 1.65 $ 1.45 $ 4.58 $ 2.53 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and intangible assets were (in millions): September 30, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Goodwill $ 10,123.9 $ (522.4) $ 9,601.5 $ 10,141.6 $ (531.9) $ 9,609.7 Intangible assets: Purchased and internally developed software $ 379.8 $ (314.6) $ 65.2 $ 377.6 $ (307.0) $ 70.6 Customer related and other 742.7 (529.8) 212.9 738.1 (510.2) 227.9 $ 1,122.5 $ (844.4) $ 278.1 $ 1,115.7 $ (817.2) $ 298.5 |
Changes in Goodwill | Changes in goodwill were (in millions): Nine Months Ended September 30, 2021 2020 January 1 $ 9,609.7 $ 9,440.5 Acquisitions 6.9 46.1 Noncontrolling interests in acquired businesses 37.3 32.4 Contingent purchase price obligations of acquired businesses 88.0 — Dispositions (21.7) (3.3) Foreign currency translation (118.7) (77.3) September 30 $ 9,601.5 $ 9,438.4 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt [Abstract] | |
Long-Term Debt | Long-term debt was (in millions): September 30, 2021 December 31, 2020 3.625% Senior Notes due 2022 $ — $ 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 €500 Million 0.80% Senior Notes due 2027 579.0 611.5 2.45% Senior Notes due 2030 600.0 600.0 4.20% Senior Notes due 2030 600.0 600.0 €500 Million 1.40% Senior Notes due 2031 579.0 611.5 2.60% Senior Notes due 2031 800.0 — 5,308.0 5,823.0 Unamortized discount (8.6) (5.1) Unamortized debt issuance costs (29.3) (27.0) Unamortized deferred gain from settlement of interest rate swaps 1.6 16.4 Long-term debt $ 5,271.7 $ 5,807.3 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Revenue and Long-Lived Assets and Goodwill by Geographic Region | Revenue and long-lived assets and goodwill by geographic region were (in millions): Americas EMEA Asia-Pacific September 30, 2021 Revenue - Three months ended $ 1,894.3 $ 1,082.4 $ 458.3 Revenue - Nine months ended 5,957.8 3,170.1 1,305.7 Long-lived assets and goodwill 7,567.2 2,991.1 686.1 September 30, 2020 Revenue - Three months ended $ 1,916.3 $ 920.2 $ 370.0 Revenue - Nine months ended 5,703.8 2,661.2 1,049.1 Long-lived assets and goodwill 7,632.5 3,005.0 642.0 |
Pension and Other Postemploym_2
Pension and Other Postemployment Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Defined Benefit Pension Plans [Member] | |
Components of Net Periodic Benefit Expense | Defined Benefit Pension Plans The components of net periodic benefit expense were (in millions): Nine Months Ended September 30, 2021 2020 Service cost $ 3.9 $ 5.6 Interest cost 2.7 5.0 Expected return on plan assets (0.8) (0.7) Amortization of prior service cost 0.5 0.5 Amortization of actuarial losses 7.0 4.0 $ 13.3 $ 14.4 |
Postemployment Arrangements [Member] | |
Components of Net Periodic Benefit Expense | Postemployment Arrangements The components of net periodic benefit expense were (in millions): Nine Months Ended September 30, 2021 2020 Service cost $ 3.6 $ 3.5 Interest cost 1.6 2.6 Amortization of prior service cost 3.1 3.2 Amortization of actuarial losses 2.9 1.6 $ 11.2 $ 10.9 |
COVID-19 Repositioning Costs (T
COVID-19 Repositioning Costs (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
COVID-19 Repositioning Costs [Abstract] | |
COVID-19 Repositioning Liabilities | At September 30, 2021 the remaining liability for the COVID-19 repositioning costs was (in millions): January 1, 2021 $ 83.8 Payments (34.6) September 30, 2021 $ 49.2 |
Supplemental Cash Flow Data (Ta
Supplemental Cash Flow Data (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Data [Abstract] | |
Change in Operating Capital | The change in operating capital was (in millions): Nine Months Ended September 30, 2021 2020 (Increase) decrease in accounts receivable $ 343.6 $ 1,435.6 (Increase) decrease in work in process and other current assets (308.6) 121.0 Increase (decrease) in accounts payable (1,071.3) (3,110.7) Increase (decrease) in customer advances, taxes payable and other current liabilities (86.2) (216.8) Change in other assets and liabilities, net 111.8 (25.8) Increase (decrease) $ (1,010.7) $ (1,796.7) Income taxes paid $ 320.2 $ 249.4 Interest paid $ 157.4 $ 116.5 |
Supplemental Non-Cash Information Related to Leases | Supplemental non-cash information related to leases was (in millions): Nine Months Ended September 30, 2021 2020 Net increase in lease liability: Operating leases $ 111.2 $ 114.7 Finance leases $ 47.9 $ 23.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss), net of income taxes were (in millions): Cash Defined Benefit Pension Plans and Postemployment Arrangements Foreign Total Nine Months Ended September 30, 2021 January 1 $ (20.1) $ (123.2) $ (1,070.5) $ (1,213.8) Other comprehensive income (loss) before reclassifications — — (105.5) (105.5) Reclassification from accumulated other comprehensive income (loss) 3.0 8.4 — 11.4 September 30 $ (17.1) $ (114.8) $ (1,176.0) $ (1,307.9) Nine Months Ended September 30, 2020 January 1 $ (24.0) $ (112.1) $ (1,061.5) $ (1,197.6) Other comprehensive income (loss) before reclassifications — — (192.6) (192.6) Reclassification from accumulated other comprehensive income (loss) 2.9 6.7 — 9.6 September 30 $ (21.1) $ (105.4) $ (1,254.1) $ (1,380.6) |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 were (in millions): September 30, 2021 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 4,431.2 $ 4,431.2 Marketable equity investments 1.2 1.2 Foreign currency derivatives $ 0.1 0.1 Liabilities: Foreign currency derivatives $ 0.3 $ 0.3 Contingent purchase price obligations $ 146.6 146.6 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 5,600.5 $ 5,600.5 Marketable equity investments 1.6 1.6 Foreign currency derivative instruments $ 0.6 0.6 Liabilities: Foreign currency derivatives 0.3 0.3 Contingent purchase price obligations $ 71.9 71.9 |
Changes in Contingent Purchase Price Obligations | Changes in contingent purchase price obligations were (in millions): Nine Months Ended September 30, 2021 2020 January 1 $ 71.9 $ 107.7 Acquisitions 92.3 10.0 Revaluation and interest 0.7 2.0 Payments (16.8) (25.4) Foreign currency translation (1.5) 1.0 September 30 $ 146.6 $ 95.3 |
Carrying Amount and Fair Value of Financial Assets and Liabilities | The carrying amount and fair value of our financial assets and liabilities were (in millions): September 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Assets: Cash and cash equivalents $ 4,431.2 $ 4,431.2 $ 5,600.5 $ 5,600.5 Marketable equity securities 1.2 1.2 1.6 1.6 Non-marketable equity securities 6.6 6.6 8.9 8.9 Foreign currency derivatives 0.1 0.1 0.6 0.6 Liabilities: Short-term debt $ 10.2 $ 10.2 $ 3.9 $ 3.9 Foreign currency derivatives 0.3 0.3 0.3 0.3 Contingent purchase price obligations 146.6 146.6 71.9 71.9 Long-term debt 5,217.7 5,669.0 5,807.3 6,380.6 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 3,435 | $ 3,206.5 | $ 10,433.6 | $ 9,414.1 | |
Contract assets and unbilled fees and costs | 596.6 | 648 | 596.6 | 648 | $ 501.1 |
Media and production costs | 653 | 526.4 | 653 | 526.4 | 600.1 |
Work in process: | 1,249.6 | 1,174.4 | 1,249.6 | 1,174.4 | 1,101.2 |
Customer advances | 1,325.8 | 1,129.5 | 1,325.8 | 1,129.5 | $ 1,361.3 |
North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,821.8 | 1,854.7 | 5,751.7 | 5,516 | |
UNITED STATES | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,705.2 | 1,762.9 | 5,414.2 | 5,244.7 | |
Latin America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 72.5 | 61.6 | 206.1 | 187.8 | |
Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,024.3 | 875 | 3,009.5 | 2,525.9 | |
Middle East and Africa | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 58.1 | 45.2 | 160.6 | 135.3 | |
Asia-Pacific | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 458.3 | 370 | 1,305.7 | 1,049.1 | |
Advertising | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,820.6 | 1,827.6 | 5,838.8 | 5,291 | |
CRM Precision Marketing | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 309.4 | 237.1 | 872.4 | 683.1 | |
CRM Commerce and Brand Consulting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 231.3 | 194.2 | 667.4 | 602.8 | |
CRM Experiential | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 132.7 | 88.1 | 345.1 | 297.9 | |
CRM Execution & Support | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 258.8 | 235.5 | 756.3 | 702 | |
Public Relations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 359.4 | 325.6 | 1,022.8 | 957.4 | |
Healthcare | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 322.8 | $ 298.4 | $ 930.8 | $ 879.9 |
Net Income (Loss) per Share (De
Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Income per Share [Abstract] | ||||
Net Income - Omnicom Group Inc. | $ 355.6 | $ 313.3 | $ 991.6 | $ 547.3 |
Weighted Average Shares: | ||||
Basic | 214 | 215.4 | 215 | 215.6 |
Dilutive stock options and restricted shares | 1.4 | 0.4 | 1.4 | 0.6 |
Diluted | 215.4 | 215.8 | 216.4 | 216.2 |
Anti-dilutive stock options and restricted shares | 0.7 | 0.8 | 0.7 | 0.8 |
Net Income per Share - Omnicom Group Inc.: | ||||
Basic | $ 1.66 | $ 1.45 | $ 4.61 | $ 2.54 |
Diluted | $ 1.65 | $ 1.45 | $ 4.58 | $ 2.53 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Gross Carrying Value | $ 10,123.9 | $ 10,141.6 | |
Goodwill, Accumulated Amortization | (522.4) | (531.9) | |
Goodwill, Net Carrying Value | 9,601.5 | $ 9,438.4 | 9,609.7 |
Intangible assets: | |||
Intangible assets:, Gross Carrying Value | 1,122.5 | 1,115.7 | |
Intangible assets:, Accumulated Amortization | (844.4) | (817.2) | |
Intangible assets:, Net Carrying Value | 278.1 | 298.5 | |
Changes in Goodwill | |||
Goodwill, January 1 | 9,609.7 | 9,440.5 | |
Goodwill, Acquisitions | 6.9 | 46.1 | |
Goodwill, Noncontrolling interests in acquired businesses | 37.3 | 32.4 | |
Goodwill, Contingent purchase price obligations of acquired businesses | 88 | 0 | |
Goodwill, Dispositions | (21.7) | (3.3) | |
Goodwill, Foreign currency translation | (118.7) | (77.3) | |
Goodwill, September 30 | 9,601.5 | $ 9,438.4 | |
Purchased and internally developed software | |||
Intangible assets: | |||
Intangible assets:, Gross Carrying Value | 379.8 | 377.6 | |
Intangible assets:, Accumulated Amortization | (314.6) | (307) | |
Intangible assets:, Net Carrying Value | 65.2 | 70.6 | |
Customer related and other | |||
Intangible assets: | |||
Intangible assets:, Gross Carrying Value | 742.7 | 738.1 | |
Intangible assets:, Accumulated Amortization | (529.8) | (510.2) | |
Intangible assets:, Net Carrying Value | $ 212.9 | $ 227.9 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | May 28, 2021 | May 03, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Short-Term Borrowings [Abstract] | |||||
Short-term debt | $ 10.2 | $ 3.9 | |||
Long-Term Debt [Abstract] | |||||
Long-term debt, carrying amount | 5,308 | 5,823 | |||
Unamortized discount | (8.6) | (5.1) | |||
Unamortized debt issuance costs | (29.3) | (27) | |||
Unamortized deferred gain from settlement of interest rate swaps | 1.6 | 16.4 | |||
Long-term debt | 5,271.7 | 5,807.3 | |||
Proceeds from borrowings | $ 791.7 | 791.7 | $ 1,186.6 | ||
Loss on extinguishment of debt | $ (26.6) | ||||
Credit Facility [Member] | |||||
Credit Facilities [Abstract] | |||||
Credit Facilities, maximum borrowing capacity | $ 2,500 | ||||
Credit Facilities, expiration date | Feb. 14, 2025 | ||||
Credit Facilities, amount outstanding | $ 0 | ||||
Credit Facilities, covenant terms | The Credit Facility contains a financial covenant that requires us to maintain a Leverage Ratio of consolidated indebtedness to consolidated EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash charges) of no more than 3.5 times for the most recently ended 12-month period. In October 2020, we amended the Credit Facility to increase the maximum Leverage Ratio to 4.0 times through December 31, 2021. | ||||
Credit Facilities, covenant compliance | At September 30, 2021, we were in compliance with this covenant as our Leverage Ratio was 2.2 times. | ||||
Commercial Paper [Member] | |||||
Credit Facilities [Abstract] | |||||
Credit Facilities, current borrowing capacity | $ 2,000 | ||||
Credit Facilities, amount outstanding | 0 | ||||
Uncommitted credit lines [Member] | |||||
Credit Facilities [Abstract] | |||||
Credit Facilities, current borrowing capacity | 915.6 | ||||
Credit Facilities, amount outstanding | 0 | ||||
3.625% Senior Notes due 2022 | |||||
Long-Term Debt [Abstract] | |||||
Long-term debt, carrying amount | $ 0 | 1,250 | |||
Long-term debt, interest rate | 3.625% | ||||
3.65% Senior Notes due 2024 | |||||
Long-Term Debt [Abstract] | |||||
Long-term debt, carrying amount | $ 750 | 750 | |||
Long-term debt, interest rate | 3.65% | ||||
3.60% Senior Notes due 2026 | |||||
Long-Term Debt [Abstract] | |||||
Long-term debt, carrying amount | $ 1,400 | 1,400 | |||
Long-term debt, interest rate | 3.60% | ||||
€500 Million 0.80% Senior Notes due 2027 | |||||
Long-Term Debt [Abstract] | |||||
Long-term debt, carrying amount | $ 579 | 611.5 | |||
Long-term debt, interest rate | 0.80% | ||||
2.45% Senior Notes due 2030 | |||||
Long-Term Debt [Abstract] | |||||
Long-term debt, carrying amount | $ 600 | 600 | |||
Long-term debt, interest rate | 2.45% | ||||
4.20% Senior Notes due 2030 | |||||
Long-Term Debt [Abstract] | |||||
Long-term debt, carrying amount | $ 600 | 600 | |||
Long-term debt, interest rate | 4.20% | ||||
€500 Million 1.40% Senior Notes due 2031 | |||||
Long-Term Debt [Abstract] | |||||
Long-term debt, carrying amount | $ 579 | 611.5 | |||
Long-term debt, interest rate | 1.40% | ||||
2.60% Senior Notes due 2031 | |||||
Long-Term Debt [Abstract] | |||||
Long-term debt, carrying amount | $ 800 | $ 800 | $ 0 | ||
Long-term debt, interest rate | 2.60% | 2.60% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||||
Revenue | $ 3,435 | $ 3,206.5 | $ 10,433.6 | $ 9,414.1 |
Americas | ||||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||||
Revenue | 1,894.3 | 1,916.3 | 5,957.8 | 5,703.8 |
Long-lived assets and goodwill | 7,567.2 | 7,632.5 | 7,567.2 | 7,632.5 |
EMEA | ||||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||||
Revenue | 1,082.4 | 920.2 | 3,170.1 | 2,661.2 |
Long-lived assets and goodwill | 2,991.1 | 3,005 | 2,991.1 | 3,005 |
Asia-Pacific | ||||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||||
Revenue | 458.3 | 370 | 1,305.7 | 1,049.1 |
Long-lived assets and goodwill | $ 686.1 | $ 642 | $ 686.1 | $ 642 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes [Abstract] | ||||
Effective tax rate | 25.20% | 28.50% | ||
Gain on disposition of subsidiary | $ 0 | $ 0 | $ (50.5) | $ 0 |
Income tax benefit, resolution of uncertain tax positions | 11.7 | |||
Unrecognized tax benefits | 174.6 | 174.6 | ||
Unrecognized tax benefits that would impact effective tax rate | $ 166.9 | $ 166.9 |
Pension and Other Postemploym_3
Pension and Other Postemployment Benefits (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Pension Plans [Member] | ||
Components of Net Periodic Benefit Expense | ||
Service cost | $ 3.9 | $ 5.6 |
Interest cost | 2.7 | 5 |
Expected return on plan assets | (0.8) | (0.7) |
Amortization of prior service cost | 0.5 | 0.5 |
Amortization of actuarial losses | 7 | 4 |
Net periodic benefit expense | 13.3 | 14.4 |
Employer contributions | 0.5 | 0.9 |
Postemployment Arrangements [Member] | ||
Components of Net Periodic Benefit Expense | ||
Service cost | 3.6 | 3.5 |
Interest cost | 1.6 | 2.6 |
Amortization of prior service cost | 3.1 | 3.2 |
Amortization of actuarial losses | 2.9 | 1.6 |
Net periodic benefit expense | $ 11.2 | $ 10.9 |
Disposition of Subsidiary (Deta
Disposition of Subsidiary (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disposition of Subsidiary [Abstract] | ||||
Gain on disposition of subsidiary | $ 0 | $ 0 | $ 50.5 | $ 0 |
COVID-19 Repositioning Costs (D
COVID-19 Repositioning Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
COVID-19 Repositioning Costs [Abstract] | ||||
COVID-19 repositioning costs | $ 0 | $ 0 | $ 0 | $ 277.9 |
Repositioning Liabilities [Roll Forward] | ||||
Repositioning Liabilities, January 1, 2021 | 83.8 | |||
Repositioning Liabilities, Payments | (34.6) | |||
Repositioning Liabilities, September 30, 2021 | $ 49.2 | $ 49.2 |
Supplemental Cash Flow Data (De
Supplemental Cash Flow Data (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Change in Operating Capital [Abstract] | ||
(Increase) decrease in accounts receivable | $ 343.6 | $ 1,435.6 |
(Increase) decrease in work in process and other current assets | (308.6) | 121 |
Increase (decrease) in accounts payable | (1,071.3) | (3,110.7) |
Increase (decrease) in customer advances, taxes payable and other current liabilities | (86.2) | (216.8) |
Change in other assets and liabilities, net | 111.8 | (25.8) |
Increase (decrease) | (1,010.7) | (1,796.7) |
Income taxes paid | 320.2 | 249.4 |
Interest paid | 157.4 | 116.5 |
Operating leases, Net increase in lease liability | 111.2 | 114.7 |
Finance leases, Net increase in lease liability | $ 47.9 | $ 23.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | $ (1,213.8) | $ (1,197.6) |
Other comprehensive income (loss) before reclassifications | (105.5) | (192.6) |
Reclassification from accumulated other comprehensive income (loss) | 11.4 | 9.6 |
September 30 | (1,307.9) | (1,380.6) |
Cash Flow Hedge | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (20.1) | (24) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassification from accumulated other comprehensive income (loss) | 3 | 2.9 |
September 30 | (17.1) | (21.1) |
Defined Benefit Pension Plans and Postemployment Arrangements | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (123.2) | (112.1) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassification from accumulated other comprehensive income (loss) | 8.4 | 6.7 |
September 30 | (114.8) | (105.4) |
Foreign Currency Translation | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (1,070.5) | (1,061.5) |
Other comprehensive income (loss) before reclassifications | (105.5) | (192.6) |
Reclassification from accumulated other comprehensive income (loss) | 0 | 0 |
September 30 | $ (1,176) | $ (1,254.1) |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Carrying Amount | |||
Assets: | |||
Cash and cash equivalents | $ 4,431.2 | $ 5,600.5 | |
Marketable equity securities | 1.2 | 1.6 | |
Non-marketable equity securities | 6.6 | 8.9 | |
Foreign currency derivatives | 0.1 | 0.6 | |
Liabilities: | |||
Short-term debt | 10.2 | 3.9 | |
Foreign currency derivatives | 0.3 | 0.3 | |
Contingent purchase price obligations | 146.6 | 71.9 | |
Long-term debt | 5,217.7 | 5,807.3 | |
Fair Value | |||
Assets: | |||
Cash and cash equivalents | 4,431.2 | 5,600.5 | |
Marketable equity securities | 1.2 | 1.6 | |
Non-marketable equity securities | 6.6 | 8.9 | |
Foreign currency derivatives | 0.1 | 0.6 | |
Liabilities: | |||
Short-term debt | 10.2 | 3.9 | |
Foreign currency derivatives | 0.3 | 0.3 | |
Contingent purchase price obligations | 146.6 | 71.9 | |
Long-term debt | 5,669 | 6,380.6 | |
Contingent purchase price obligations | |||
Changes in Contingent Purchase Price Obligations [Roll Forward] | |||
January 1 | 71.9 | $ 107.7 | |
Acquisitions | 92.3 | 10 | |
Revaluation and interest | 0.7 | 2 | |
Payments | (16.8) | (25.4) | |
Foreign currency translation | (1.5) | 1 | |
September 30 | 146.6 | $ 95.3 | |
Fair Value, Recurring [Member] | |||
Assets: | |||
Cash and cash equivalents | 4,431.2 | 5,600.5 | |
Marketable equity securities | 1.2 | 1.6 | |
Foreign currency derivatives | 0.1 | 0.6 | |
Liabilities: | |||
Foreign currency derivatives | 0.3 | 0.3 | |
Contingent purchase price obligations | 146.6 | 71.9 | |
Fair Value, Recurring [Member] | Level 1 | |||
Assets: | |||
Cash and cash equivalents | 4,431.2 | 5,600.5 | |
Marketable equity securities | 1.2 | 1.6 | |
Fair Value, Recurring [Member] | Level 2 | |||
Assets: | |||
Foreign currency derivatives | 0.1 | 0.6 | |
Liabilities: | |||
Foreign currency derivatives | 0.3 | 0.3 | |
Fair Value, Recurring [Member] | Level 3 | |||
Liabilities: | |||
Contingent purchase price obligations | $ 146.6 | $ 71.9 |